Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CINEMARK USA INC /TX | |
Entity Central Index Key | 0000885975 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 33-47040 | |
Entity Tax Identification Number | 75-2206284 | |
Entity Address, Address Line One | 3900 Dallas Parkway | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75093 | |
City Area Code | 972 | |
Local Phone Number | 665-1000 | |
Entity Incorporation, State or Country Code | TX | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,500 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 182,648 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 430,956 | $ 488,215 | |
Inventories | 15,159 | 21,686 | |
Accounts receivable | 24,627 | 83,722 | |
Current income tax receivable | 84,105 | 4,082 | |
Prepaid expenses and other | 34,394 | 37,187 | |
Accounts receivable from parent | 27,767 | 24,319 | |
Total current assets | 617,008 | 659,211 | |
Theatre properties and equipment | 3,252,987 | 3,348,237 | |
Less: accumulated depreciation and amortization | 1,707,164 | 1,612,990 | |
Theatre properties and equipment, net | 1,545,823 | 1,735,247 | |
Operating lease right-of-use assets, net | 1,286,224 | 1,383,080 | |
Other assets | |||
Goodwill | 1,249,427 | 1,283,371 | [1] |
Intangible assets, net | 315,569 | 321,769 | |
Investments in affiliates | 118,589 | 155,285 | |
Long-term deferred tax asset | 16,491 | 9,369 | |
Deferred charges and other assets, net | 36,047 | 39,114 | |
Total other assets | 1,986,557 | 2,074,700 | |
Total assets | 5,435,612 | 5,852,238 | |
Current liabilities | |||
Current portion of long-term debt | 7,965 | 6,595 | |
Current portion of operating lease obligations | 216,382 | 217,406 | |
Current portion of finance lease obligations | 16,224 | 15,432 | |
Current income tax payable | 5,195 | ||
Current liability for uncertain tax positions | 13,446 | ||
Accounts payable and accrued expenses | 376,853 | 450,097 | |
Total current liabilities | 617,424 | 708,171 | |
Long-term liabilities | |||
Long-term debt, less current portion | 2,018,819 | 1,771,342 | |
Operating lease obligations, less current portion | 1,137,822 | 1,223,462 | |
Finance lease obligations, less current portion | 128,727 | 141,017 | |
Long-term deferred tax liability | 114,866 | 141,836 | |
Long-term liability for uncertain tax positions | 14,678 | 848 | |
Other long-term liabilities | 61,690 | 43,001 | |
Total long-term liabilities | 3,822,839 | 3,669,860 | |
Commitments and contingencies (see Note 18) | |||
Cinemark USA, Inc.'s stockholder's equity: | |||
Treasury stock, 57,245 Class B shares at cost | (24,233) | (24,233) | |
Additional paid-in-capital | 1,303,791 | 1,291,618 | |
Retained earnings | 69,231 | 484,883 | |
Accumulated other comprehensive loss | (414,398) | (340,112) | |
Total Cinemark USA, Inc.'s stockholder's equity | 983,934 | 1,461,699 | |
Noncontrolling interests | 11,415 | 12,508 | |
Total equity | 995,349 | 1,474,207 | |
Total liabilities and equity | 5,435,612 | 5,852,238 | |
NCM | |||
Other assets | |||
Investment in NCM | 250,434 | 265,792 | |
Long-term liabilities | |||
NCM screen advertising advances | 346,237 | 348,354 | |
Class A common stock | |||
Cinemark USA, Inc.'s stockholder's equity: | |||
Common stock | 0 | 0 | |
Class B common stock | |||
Cinemark USA, Inc.'s stockholder's equity: | |||
Common stock | 49,543 | 49,543 | |
Total equity | $ 49,543 | $ 49,543 | |
[1] | Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Treasury stock, shares | 57,245 | 57,245 |
Class A common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 1,500 | 1,500 |
Common stock, shares outstanding | 1,500 | 1,500 |
Class B common stock | ||
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 239,893 | 239,893 |
Common stock, shares outstanding | 182,648 | 182,648 |
Common stock, par value | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues | |||||
Total revenues | $ 35,478 | $ 821,817 | $ 588,068 | $ 2,494,296 | |
Cost of operations | |||||
Film rentals and advertising | 8,257 | 254,911 | 165,262 | 759,693 | |
Concession supplies | 2,688 | 51,573 | 39,879 | 157,361 | |
Salaries and wages | 20,181 | 103,270 | 116,589 | 308,316 | |
Facility lease expense | 67,047 | 87,436 | 214,490 | 262,529 | |
Utilities and other | 43,412 | 123,877 | 178,806 | 357,210 | |
General and administrative expenses | 29,625 | 44,113 | 97,645 | 125,054 | |
Depreciation and amortization | 62,543 | 67,760 | 191,380 | 196,795 | |
Impairment of long-lived assets | 24,595 | 27,304 | 41,214 | 45,382 | |
Restructuring costs | 524 | 20,062 | |||
Loss on disposal of assets and other | (13,327) | 2,453 | (10,997) | 8,057 | |
Total cost of operations | 245,545 | 762,697 | 1,054,330 | 2,220,397 | |
Operating income (loss) | (210,067) | 59,120 | (466,262) | 273,899 | |
Other income (expense) | |||||
Interest expense | [1] | (32,235) | (24,967) | (87,942) | (75,037) |
Interest income | 1,322 | 3,897 | 4,208 | 10,042 | |
Foreign currency exchange gain (loss) | (2,251) | (4,406) | (6,183) | (4,785) | |
Equity in income (loss) of affiliates | (16,077) | 15,139 | (27,711) | 33,982 | |
Total other expense | (54,081) | (12,529) | (128,379) | (40,810) | |
Income (loss) before income taxes | (264,148) | 46,591 | (594,641) | 233,089 | |
Income taxes | (119,273) | 14,193 | (220,287) | 64,615 | |
Net income (loss) | (144,875) | 32,398 | (374,354) | 168,474 | |
Less: Net income (loss) attributable to noncontrolling interests | (444) | 602 | (702) | 1,957 | |
Net income (loss) attributable to Cinemark USA, Inc. | (144,431) | 31,796 | (373,652) | 166,517 | |
Admissions | |||||
Revenues | |||||
Total revenues | 14,901 | 454,429 | 307,400 | 1,371,041 | |
Concession | |||||
Revenues | |||||
Total revenues | 9,116 | 289,477 | 199,596 | 886,083 | |
Other | |||||
Revenues | |||||
Total revenues | 11,461 | 77,911 | 81,072 | 237,172 | |
NCM | |||||
Other income (expense) | |||||
Distributions from NCM | 1,061 | 2,474 | 6,975 | 9,168 | |
Interest expense - NCM | $ (5,901) | $ (4,666) | $ (17,726) | $ (14,180) | |
[1] | Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (144,875) | $ 32,398 | $ (374,354) | $ 168,474 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gain (loss) due to fair value adjustments on interest rate swap agreements, net of taxes of $5,677, $417, $3,696 and $3,391, net of settlements | 6,528 | (1,291) | (16,794) | (10,504) |
Other comprehensive loss in equity method investments | 0 | (49) | 0 | (142) |
Foreign currency translation adjustments | (1,503) | (25,408) | (62,830) | (19,728) |
Total other comprehensive loss, net of tax | 5,025 | (26,748) | (79,624) | (30,374) |
Total comprehensive income (loss), net of tax | (139,850) | 5,650 | (453,978) | 138,100 |
Comprehensive (income) loss attributable to noncontrolling interests | 444 | (602) | 702 | (1,957) |
Comprehensive income (loss) attributable to Cinemark USA, Inc. | $ (139,406) | $ 5,048 | $ (453,276) | $ 136,143 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized loss due to fair value adjustments on interest rate swap agreements, taxes | $ 5,677 | $ 417 | $ 3,696 | $ 3,391 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating activities | |||||
Net income (loss) | $ (144,875) | $ 32,398 | $ (374,354) | $ 168,474 | |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | |||||
Depreciation | 187,748 | 193,032 | |||
Amortization of intangible and other assets | 3,632 | 3,763 | |||
Amortization of debt issue costs | 4,638 | 3,983 | |||
Amortization of NCM screen advertising advances and other deferred revenues | (23,647) | (12,203) | |||
Amortization of accumulated losses for amended swap agreements | 5,338 | ||||
Impairment of long-lived assets | 24,595 | 27,304 | 41,214 | 45,382 | |
Share based awards compensation expense | 4,198 | 3,609 | 12,172 | 9,799 | |
Loss on disposal of assets and other | (13,327) | 2,453 | (10,997) | 8,057 | |
Non-cash rent expense | 816 | (1,102) | 1,649 | (3,252) | |
Equity in (income) loss of affiliates | 16,077 | (15,139) | 27,711 | (33,982) | |
Deferred income tax expenses | (29,941) | (5,314) | |||
Distributions from equity investees | 25,430 | 28,163 | |||
Changes in assets and liabilities and other | (60,727) | (9,392) | |||
Net cash provided by (used for) operating activities | (172,408) | 396,510 | |||
Investing activities | |||||
Additions to theatre properties and equipment | (20,659) | (71,343) | (67,618) | (186,512) | |
Acquisition of U.S. theatres, net of cash acquired | (10,170) | ||||
Proceeds from sale of theatre properties and equipment and other | 212 | 377 | |||
Investment in joint ventures and other, net | (50) | ||||
Net cash used for investing activities | (67,456) | (196,305) | |||
Financing activities | |||||
Dividends paid to parent | (42,000) | (118,825) | |||
Payroll taxes paid as a result of stock withholdings | (2,865) | (2,247) | |||
Proceeds from other borrowings | 257,167 | ||||
Repayments of long-term debt | (4,947) | (4,947) | |||
Payment of debt issue costs | (7,859) | ||||
Payments on finance leases | [1] | (11,497) | (10,830) | ||
Other | (392) | (1,588) | |||
Net cash provided by (used for) financing activities | 187,607 | (138,437) | |||
Effect of exchange rate changes on cash and cash equivalents | (5,002) | (5,296) | |||
Increase in cash and cash equivalents | (57,259) | 56,472 | |||
Cash and cash equivalents: | |||||
Beginning of period | 488,215 | 426,216 | |||
End of period | $ 430,956 | $ 482,688 | 430,956 | $ 482,688 | |
NCM | |||||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | |||||
Interest accrued on NCM screen advertising advances | $ 17,726 | ||||
[1] | As discussed above at Lease Deferrals and Abatements |
The Company and Basis of Presen
The Company and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
The Company and Basis of Presentation | 1. The Company and Basis of Presentation Cinemark USA, Inc., a wholly-owned subsidiary of Cinemark Holdings, Inc., and its subsidiaries operate in the motion picture exhibition industry, with theatres in the United States (“U.S.”), Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. The accompanying condensed consolidated balance sheet as of December 31, 2019, which was derived from audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from these estimates. Majority-owned subsidiaries of which the Company has control are consolidated while those affiliates of which the Company owns between 20% and 50% and does not control are accounted for under the equity method. Those of which the Company owns less than 20% are generally accounted for under the cost method, unless the Company is deemed to have the ability to exercise significant influence over the affiliate, in which case the Company would account for its investment under the equity method. Th These condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and the notes thereto for the year ended December 31, 2019, included in the Annual Report on Form 10-K filed February 21, 2020 by the Company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be achieved for the full year. |
Impact of COVID-19
Impact of COVID-19 | 9 Months Ended |
Sep. 30, 2020 | |
Risks And Uncertainties [Abstract] | |
Impact of COVID-19 | 2. Impact of COVID-19 The outbreak of the COVID-19 pandemic has had an unprecedented impact on the world and the movie exhibition industry. The social and economic effects are widespread, and the situation continues to evolve. As a movie exhibitor that operates spaces where patrons gather in close proximity, the Company has been, and continues to be, significantly impacted by protective actions taken by governmental authorities to control the spread of the pandemic. To comply with government mandates at the initial outbreak of the COVID-19 pandemic, the Company temporarily closed all of its theatres in the U.S. and Latin America effective March 17, 2020 and March 18, 2020, respectively. As of September 30, 2020, the Company had reopened 252 of its domestic theatres and 15 of its international theatres showing limited volume of new releases along with library content during reduced operating hours. While some staffing has been brought back to pre-COVID-19 levels given the theatre reopenings, the Company continues to maintain a temporary reduction in staffing while limiting capital expenditures to essential activities and projects. The Company also continues to work with landlords and other vendors on extended or modified contractual payment terms while evaluating the status of the COVID-19 pandemic and local government regulations in assessing its plans to reopen its remaining theatres. The Company’s focus on maintaining a healthy balance sheet and low leverage allowed it to enter the global COVID-19 crisis in a strong financial position. Based on the Company’s current level of operations, it believes that it has sufficient cash to sustain operations until late 2021, which would extend into 2022 when considering the additional income tax benefits discussed below. Nonetheless, the COVID-19 pandemic has had, and may continue to have, adverse effects on the Company’s business, results of operations, cash flows, financial condition, access to credit markets and ability to service existing and future indebtedness, some of which may be significant. Health and Safety Pr otocols The Company has implemented health and safety protocols in its theatres as a result of the pandemic for the safety of its employees and guests including, but not limited to, the following: • staggering showtimes and limiting capacities to maximize physical distancing • instituting a seat buffering technology to ensure social distancing within the auditorium • requiring face masks for all guests within the theater, which may only be removed for eating and drinking in the auditoriums • implementing stringent disinfecting and sanitizing protocols and providing ample supplies of hand sanitizer and seat wipes for patrons • delivering an abundant supply of fresh outdoor air, maintaining optimal air circulation and eliminating potential pollutants through filtration • encouraging contactless transactions • requiring that employees receive special training, participate in wellness check-ins and use personal protective wear, including face masks and gloves With these comprehensive health and safety protocols in place, we believe we can more safely operate theaters while prioritizing the health of employees, guests and communities. The Company will continue to evolve these protocols based on changes to recommendations by local authorities throughout the region, as well as based on the Company’s experience as it reopens theatres domestically and throughout Latin America. Restructuring Charges In addition to the Company’s initial actions in response to the COVID-19 pandemic discussed above, during June 2020, Company management approved and announced a restructuring plan to realign its operations creating a more efficient cost structure (referred to herein as the “2020 Restructuring Plan”). The 2020 Restructuring Plan primarily includes a permanent headcount reduction at its domestic corporate office and the permanent closure of 14 domestic and 7 international theatres. The Company recorded $524 and $20,062 in restructuring costs on the condensed consolidated statement of income for the three and nine months ended September 30, 2020, respectively. The following table summarizes the costs of the 2020 Restructuring Plan, payments made, noncash write-offs and the remaining liability at September 30, 2020: U.S. Operating Segment International Operating Segment Consolidated Employee-related Costs Facility Closure Costs Total Charges Employee-related Costs Facility Closure Costs Total Charges Employee-related Costs Facility Closure Costs Total Charges Restructuring charges during the three months ended June 30, 2020 $ 8,955 $ 7,589 $ 16,544 $ 163 $ 2,831 $ 2,994 $ 9,118 $ 10,420 $ 19,538 Amounts paid (90 ) (482 ) (572 ) — (42 ) (42 ) (90 ) (524 ) (614 ) Noncash write-offs — 88 88 — (2,374 ) (2,374 ) — (2,286 ) (2,286 ) Reserve balance at June 30, 2020 $ 8,865 $ 7,195 $ 16,060 $ 163 $ 415 $ 578 $ 9,028 $ 7,610 $ 16,638 Restructuring charges during the three months ended September 30, 2020 (1) — 154 154 17 353 370 17 507 524 Amounts paid (6,521 ) (436 ) (6,957 ) (180 ) (313 ) (493 ) (6,701 ) (749 ) (7,450 ) Noncash write-offs — 47 47 — (129 ) (129 ) — (82 ) (82 ) Reserve balance at September 30, 2020 $ 2,344 $ 6,960 $ 9,304 $ — $ 326 $ 326 $ 2,344 $ 7,286 $ 9,630 The unpaid and accrued restructuring costs of $9,630 are reflected in accounts payable and accrued expenses on the condensed consolidated balance sheet as of September 30, 2020. Income Tax Considerations The Company has elected to take advantage of certain tax-related benefits available under the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”) signed into U.S. federal law on March 27, 2020. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security payments, net operating loss (“NOL”) utilization and carryback periods, modifications to the net interest deduction limitations and a technical correction to the 2017 Tax Cuts and Jobs Act, which makes certain qualified improvement property eligible for bonus depreciation. Per the provisions of the CARES Act, the Company has deferred payment of certain employer payroll taxes for 2020 and has recorded payroll tax credits for expenses related to paying wages and health benefits to employees who were not working as a result of closures and reduced receipts associated with COVID-19. An income tax benefit of $(119,273) was recorded for the third quarter of 2020 compared to income tax expense of $14,193 for the third quarter of 2019 on book (loss)/income of $(264,148) and $46,591, respectively. The effective tax rate was approximately 45.2% for the third quarter of 2020 compared to 30.5% for the third quarter of 2019. The Company’s 2020 effective tax rate was positively impacted by provisions in the CARES Act that allow for net operating losses originating in 2018, 2019 or 2020 to be carried back to earlier tax years, many of which had a 35% corporate tax rate. As a result of the pandemic, Cinemark has incurred significant U.S. losses, which the Company is carrying back to prior years. The Company recorded an income tax benefit of $(220,287) for the nine months ended September 30, 2020 with regard to U.S. operating losses, tax losses with respect to investments in foreign subsidiaries and a write down of certain intercompany receivables associated with the Company’s foreign subsidiaries. The Company has recorded an income tax receivable of $84,105 as of September 30, 2020 and received cash tax refunds of $115,769 during the nine months ended September 30, 2020. If the Company receives certain government disaster relief assistance, it may be subject to certain requirements imposed by the government on the recipients of the aid including restrictions on executive officer compensation, share buybacks, dividends, prepayment of debt, incurrence of additional indebtedness and other similar restrictions until the aid is repaid or redeemed in full. However, the Company cannot predict the manner in which such benefits will be allocated or administered and cannot predict whether it will be able to access such benefits in a timely manner or at all. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 3. New Accounting Pronouncements ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Lease Accounting
Lease Accounting | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Accounting | 4. Lease Accounting Lease Deferrals and Abatements Upon the temporary closure of theatres in March 2020, the Company initiated discussions with landlords to negotiate the deferral of rent and other lease-related payments while theatres remained closed. These discussions and negotiations have remained ongoing as the Company continues to be impacted by the COVID-19 pandemic. The amendments signed with the landlords involve varying concessions, including the abatement of rent payments during closure, deferral of all or a portion of rent payments to later periods and deferrals of rent payments to later periods combined with an early exercise of an existing renewal option or extension of the lease term. In some cases, the Company is entitled to rent-free periods while theatres remain closed in certain locations due to local regulations. Total payments deferred as of September 30, 2020 were approximately $62,559 and are included in accounts payable and accrued expenses in the condensed consolidated balance sheet. In April 2020, the FASB staff released guidance indicating that in response to the COVID-19 crisis, an entity would not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in Topic 842 to those contracts. The election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. For example, this election is available for concessions that result in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. The Company elected to not remeasure the related lease liabilities and right-of-use assets for those leases where the concessions and deferrals did not result in a significant change in total payments under the lease and where the remaining lease term did not change as a result of the negotiation. For those leases that were renewed or extended as a result of the negotiation to defer rent payments, the Company recalculated the related lease liability and right-of-use asset based on the new terms. During the three and nine months ended September 30, 2020, the Company did not recognize a material amount of negative lease expense related to rent abatement concessions. The following table represents the Company’s aggregate lease costs, by lease classification, for the periods presented. Three Months Ended Nine Months Ended September 30 September 30 Lease Cost Classification 2020 2019 2020 2019 Operating lease costs Equipment (1) Utilities and other $ 823 $ 1,569 $ 2,495 $ 5,173 Real Estate (2)(3) Facility lease expense 65,970 88,149 211,088 262,783 Total operating lease costs $ 66,793 $ 89,718 $ 213,583 $ 267,956 Finance lease costs Amortization of leased assets Depreciation and amortization $ 3,665 $ 3,703 $ 11,052 $ 11,182 Interest on lease liabilities Interest expense 1,725 1,922 5,333 5,927 Total finance lease costs $ 5,390 $ 5,625 $ 16,385 $ 17,109 (1) Includes approximately $(267) and $452 of short-term lease payments for the three months ended September 30, 2020 and 2019, respectively. Includes approximately $(839) and $1,808 of short-term lease payments for the nine months ended September 30, 2020 and 2019, respectively. The amounts for the three and nine months ended September 30, 2020 were impacted by i) a decrease in short term lease payments while theatres were closed and ii) rent abatements on leases that were not recalculated in accordance with the FASB guidance discussed above, which resulted in variable rent credits in the amount of the rent abatements. (2) Includes approximately $(191) and $18,591 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the three months ended September 30, 2020 and 2019, respectively. Includes approximately $9,146 and $54,209 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the nine months ended September 30, 2020 and 2019. The amounts for the three and nine months ended September 30, 2020 were impacted by rent abatements on leases that were not recalculated in accordance with the FASB guidance discussed above, which resulted in variable rent credits in the amount of the rent abatements. (3) Approximately $335 and $400 of lease payments are included in general and administrative expenses primarily related to office leases for the three months ended September 30, 2020 and 2019, respectively. Approximately $1,122 and $1,184 of lease payments are included in general and administrative expenses primarily related to office leases for the nine months ended September 30, 2020 and 2019, respectively. The following table represents the minimum cash lease payments included in the measurement of lease liabilities and the non-cash addition of assets for the periods indicated. Nine Months Ended September 30, Other Information 2020 2019 Contractual cash payments included in the measurement of lease liabilities (1) Cash outflows for operating leases $ 205,276 $ 211,940 Cash outflows for finance leases - operating activities $ 5,304 $ 5,756 Cash outflows for finance leases - financing activities $ 11,497 $ 10,830 Non-cash amount of leased assets obtained in exchange for: Operating lease liabilities - real estate $ 84,209 $ 53,526 Operating lease liabilities - equipment $ 32 $ 668 Finance lease liabilities $ — $ — (1) As discussed above at Lease Deferrals and Abatements As of September 30, 2020, the Company had signed lease agreements with total noncancelable lease payments of approximately $220,417 related to theatre leases that had not yet commenced. The timing of lease commencement is dependent on the completion of construction of the related theatre facility. Additionally, these amounts are based on estimated square footage and costs to construct each facility and may be subject to adjustment upon final completion of each construction project. In accordance with ASC Topic 842, fixed minimum lease payments related to these theatres are not included in the right-of-use assets and lease liabilities as of September 30, 2020. There were no noncancelable lease agreements signed, but not yet commenced, related to equipment leases as of September 30, 2020. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 5. The Company’s patrons have the option to purchase movie tickets well in advance of a movie showtime or right before the movie showtime, or at any point in between those two timeframes depending on seat availability. The Company recognizes such admissions revenues when the showtime for a purchased movie ticket has passed. Concession revenues are recognized when products are sold to the consumer. Other revenues primarily consist of screen advertising and screen rental revenues, promotional income, studio trailer placements and transactional fees. The Company sells gift cards and discount ticket vouchers, the proceeds from which are recorded as deferred revenues. Deferred revenues for gift cards and discount ticket vouchers are recognized when they are redeemed for concession items or, if redeemed for movie tickets, when the showtime has passed. The Company offers a subscription program in the U.S. whereby patrons can pay a monthly fee to receive a monthly credit for use towards a future movie ticket purchase. The Company records the monthly subscription program fees as deferred revenues and records admissions revenues when the showtime for a movie ticket purchased with a credit has passed. The Company has loyalty programs in the U.S. and many of its international locations that either have a prepaid annual membership fee or award points to customers as purchases are made. For those loyalty programs that have an annual membership fee, the Company recognizes the fee collected as other revenues on a straight-line basis over the term of the membership. For those loyalty programs that award points to customers based on their purchases, the Company records a portion of the original transaction proceeds as deferred revenues based on the number of reward points issued to customers and recognizes the deferred revenues when the customer redeems such points. The value of loyalty points issued is based on the estimated fair value of the rewards offered. The Company records breakage revenue on gift cards and discount ticket vouchers generally based on redemption activity and historical experience with unused balances. The Company records breakage revenue upon the expiration of loyalty points and subscription credits. Advances collected on concession and other contracts are deferred and recognized during the period in which the Company satisfies the related performance obligations, which may differ from the period in which the advances are collected. These advances are recognized on either a straight-line basis over the term of the contracts or as the Company meets its performance obligations in accordance with the terms of the contracts. Accounts receivable as of September 30, 2020 and December 31, 2019 included approximately $6,162 and $31,620 of receivables, respectively, related to contracts with customers. The Company did not record any assets related to the costs to obtain or fulfill a contract with customers during the nine months ended September 30, 2020 or September 30, 2019. Disaggregation of Revenue The following tables present revenues for the three and nine months ended September 30, 2020 and 2019, disaggregated based on major type of good or service and by reportable operating segment and disaggregated based on timing of revenue recognition. Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 U.S. International U.S. International Operating Operating Operating Operating Major Goods/Services Segment (1) Segment Consolidated Segment (1) Segment Consolidated Admissions revenues $ 14,794 $ 107 $ 14,901 $ 247,157 $ 60,243 $ 307,400 Concession revenues 8,861 255 9,116 161,674 37,922 199,596 Screen advertising, screen rental and promotional revenues (2) 9,227 513 9,740 35,319 13,437 48,756 Other revenues 1,527 194 1,721 25,857 6,459 32,316 Total revenues $ 34,409 $ 1,069 $ 35,478 $ 470,007 $ 118,061 $ 588,068 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 U.S. International U.S. International Operating Operating Operating Operating Major Goods/Services Segment (1) Segment Consolidated Segment (1) Segment Consolidated Admissions revenues $ 351,122 $ 103,307 $ 454,429 $ 1,066,884 $ 304,157 $ 1,371,041 Concession revenues 230,415 59,062 289,477 704,727 181,356 886,083 Screen advertising, screen rental and promotional revenues 21,114 16,448 37,562 63,996 49,587 113,583 Other revenues 30,394 9,955 40,349 95,180 28,409 123,589 Total revenues $ 633,045 $ 188,772 $ 821,817 $ 1,930,787 $ 563,509 $ 2,494,296 Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 U.S. International U.S. International Operating Operating Operating Operating Timing of Recognition Segment (1) Segment Consolidated Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 24,945 $ 352 $ 25,297 $ 426,476 $ 101,681 $ 528,157 Goods and services transferred over time (2) 9,464 717 10,181 43,531 16,380 59,911 Total $ 34,409 $ 1,069 $ 35,478 $ 470,007 $ 118,061 $ 588,068 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 U.S. International U.S. International Operating Operating Operating Operating Timing of Recognition Segment (1) Segment Consolidated Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 610,063 $ 169,171 $ 779,234 $ 1,860,828 $ 504,702 $ 2,365,530 Goods and services transferred over time 22,982 19,601 42,583 69,959 58,807 128,766 Total $ 633,045 $ 188,772 $ 821,817 $ 1,930,787 $ 563,509 $ 2,494,296 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. (2) Amount includes amortization of NCM screen advertising advances. See Deferred Revenues Deferred Revenues The following table presents changes in the Company’s advances and deferred revenues for the nine months ended September 30, 2020. NCM screen advertising advances (1) Other Deferred Revenues (2) Total Balance at January 1, 2020 $ 348,354 $ 138,426 $ 486,780 Amounts recognized as accounts receivable — 2,788 2,788 Cash received from customers in advance — 45,933 45,933 Common units received from NCM (see Note 9) 3,620 — 3,620 Interest accrued related to significant financing component 17,726 — 17,726 Revenue recognized during period (23,463 ) (44,714 ) (68,177 ) Foreign currency translation adjustments — (2,022 ) (2,022 ) Balance at September 30, 2020 $ 346,237 $ 140,411 $ 486,648 (1) See Note 8 for the maturity of balance as of September 30, 2020. (2) Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising, screen rental and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet. The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of September 30, 2020 and when the Company expects to recognize this revenue. Twelve Months Ended September 30, Remaining Performance Obligations 2021 2022 2023 2024 2025 Thereafter Total Other Deferred revenue $ 125,429 $ 14,936 $ 46 $ — $ — $ — $ 140,411 |
Long Term Debt Activity
Long Term Debt Activity | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long Term Debt Activity | 6. Long Term Debt Activity Senior Secured Credit Facility Cinemark USA, Inc. has a senior secured credit facility that includes a $700,000 term loan and a $100,000 revolving credit line (the “Credit Agreement”). On March 25, 2020, the Company borrowed $98,800 under the revolving credit line of the Credit Agreement, which was repaid on September 30, 2020. As of September 30, 2020, there was $641,381 outstanding under the term loan and no borrowings were outstanding under the revolving credit line. As of September 30, 2020, approximately $100,000 was available for borrowing under the revolving credit line. Quarterly principal payments of $1,649 are due on the term loan through December 31, 2024, with a final principal payment of $613,351 due on March 29, 2025. The revolving credit line matures November 28, 2022. The average interest rate applicable to outstanding term loan borrowings under the Credit Agreement at September 30, 2020 was approximately 3.4 % per annum, after giving effect to the interest rate swap agreements discussed below. On April 17, 2020, in conjunction with the issuance of the 8.750% Secured Notes discussed below, the Company obtained a waiver of the leverage covenant, which applies when amounts are outstanding under the revolving line of credit, from the majority of revolving lenders under the Credit Agreement for the fiscal quarters ending September 30, 2020 and December 31, 2020. On August 21, 2020, the Company further amended the waiver of the leverage covenant to extend through the fiscal quarter ending September 30, 2021. The amendment also i) modifies the leverage covenant calculation beginning with the calculation for the trailing twelve-month period ended December 31, 2021, ii) for purposes of testing the consolidated net senior secured leverage ratio for the fiscal quarters ending on December 31, 2021, March 31, 2022 and June 30, 2022, permits the Company to substitute Consolidated EBITDA for the first three fiscal quarters of 2019 in lieu of Consolidated EBITDA for the corresponding fiscal quarters of 2021, (iii) modifies the restrictions imposed by the covenant waiver and (iv) makes such other changes to permit the issuance of 4.50% Convertible Senior Notes by our parent company, Cinemark Holdings, Inc. that occurred on August 21, 2020. 8.750% Secured Notes acquired, retired, cancelled or discharged exceeds $ 50,000 , the 8.750% Secured Notes will mature on September 14, 2022 and (ii) on February 27, 2023, the aggregate outstanding principal amount of the 4.875 % Senior Notes that shall not have been purchased, repurchased, redeemed, defeased or otherwise acquired, retired, cancelled or discharged exceeds $ 50,000 , the 8.750% Secured Notes will mature on February 28, 2023 . Interest on the 8.750% Secured Notes will be payable on May 1 and November 1 of each year, beginning on November 1, 2020. The 8.750% Secured Notes will be fully and unconditionally guaranteed on a joint and several senior basis by certain of the Company’s subsidiaries that guarantee, assume or in any other manner become liable with respect to any of the Company’s or its guarantors’ other debt. If the Company cannot make payments on the 8.750% Secured Notes when they are due, the Company’s guarantors must make them instead. Under certain circumstances, the guarantees may be released without action by, or the consent of, the holders of the 8.750% Secured Notes. The 8.750% Secured Notes and the guarantees will be the Company’s and its guarantors’ senior obligations and they will: • rank effectively senior in right of payment to the Company’s and its guarantors’ existing and future debt that is not secured by the collateral as described within the indentures to the 8.750% Secured Notes (“Collateral”), including all obligations under the Credit Agreement, and unsecured obligations, including the existing senior notes, in each case to the extent of the value of the collateral; • rank effectively junior to the Company’s and its guarantors’ existing and future debt secured by assets that are not part of the Collateral to the extent of the value of the collateral securing such debt, including all obligations under the Credit Agreement; • otherwise rank equally in right of payment to the Company’s and its guarantors’ existing and future senior debt, including debt under the Credit Agreement and the existing senior notes; • rank senior in right of payment to the Company’s and its guarantors’ future subordinated debt; and • be structurally subordinated to all existing and future debt and other liabilities of the Company’s non-guarantor subsidiaries. The indenture to the 8.750% Secured Notes contains covenants that limit, among other things, the ability of Cinemark USA, Inc. and certain of its subsidiaries to (1) make investments or other restricted payments, including paying dividends, making other distributions or repurchasing subordinated debt or equity, (2) incur additional indebtedness and issue preferred stock, (3) enter into transactions with affiliates, (4) enter new lines of business, (5) merge or consolidate with, or sell all or substantially all of its assets to, another person and (6) create liens. Upon a change of control, as defined in the indenture governing the 8.750% Secured Notes, Cinemark USA, Inc. would be required to make an offer to repurchase the 8.750% Secured Notes at a price equal to 101% of the aggregate principal amount outstanding plus accrued and unpaid interest, if any, through the date of repurchase. The indenture governing the 8.750% Secured Notes allows Cinemark USA, Inc. to incur additional indebtedness if it satisfies a coverage ratio specified in the indenture, after giving effect to the incurrence of the additional indebtedness, and in certain other circumstances. Additional Borrowings of International Subsidiaries During May 2020, the Company’s subsidiary in Peru borrowed the USD equivalent of approximately $2,811 under a loan that bears interest at approximately 1%. Principal payments are due monthly beginning in July 2021 through June 2023. Accrued and unpaid interest is to be paid when principal payments are due. The Company is subject to certain customary negative covenants under the loan. During May, June and September 2020, the Company’s subsidiary in Colombia borrowed the USD equivalent of approximately $4,357 under three variable rate loans. Aggregate principal payments are due monthly beginning in December 2020 through September 2025. Accrued and unpaid interest is to be paid when principal payments are due. The variable interest rates on the loans ranged from approximately 7.0% to 9.0% as of September 30, 2020. The Company is subject to certain customary negative covenants and ratio covenants under the loans. Interest Rate Swap Agreements Effective March 31, 2020, the Company amended and extended its three existing interest rate swap agreements and entered into a fourth interest rate swap agreement, all of which are used to hedge a portion of the interest rate risk associated with the variable interest rates on the Company’s term loan debt and qualify for cash flow hedge accounting. Below is a summary of the Company’s interest rate swap agreements designated as cash flow hedges as of September 30, 2020: Estimated Fair Value at Notional September 30, Amount Effective Date Pay Rate Receive Rate Expiration Date 2020 (1) $ 137,500 December 31, 2018 2.12% 1-Month LIBOR December 31, 2024 $ 10,719 $ 175,000 December 31, 2018 2.12% 1-Month LIBOR December 31, 2024 13,647 $ 137,500 December 31, 2018 2.19% 1-Month LIBOR December 31, 2024 11,192 $ 150,000 March 31, 2020 0.57% 1-Month LIBOR March 31, 2022 926 Total $ 36,484 (1) Approximately $9,763 of the total is included in accounts payable and accrued expenses and $26,721 is included in other long-term liabilities on the condensed consolidated balance sheet as of September 30, 2020. Upon amending the interest rate swap agreements effective March 31,2020, the Company determined that the interest payments hedged with the agreements are still probable to occur, therefore the loss that accumulated on the swaps prior to the amendments of $29,359 is being amortized to interest expense through December 31, 2022, the original maturity dates of the swaps. Approximately $2,669 and $5,338 was recorded in amortization of accumulated losses for amended swaps in the condensed consolidated income statement for the three and nine months ended September 30, 2020, respectively. The fair values of the amended interest rate swaps and the new interest rate swap are recorded on the Company’s condensed consolidated balance sheet as an asset or liability with the related gains or losses reported as a component of accumulated other comprehensive loss. The changes in fair value are reclassified from accumulated other comprehensive loss into earnings in the same period that the hedged items affect earnings. The valuation technique used to determine fair value is the income approach. Under this approach, the Company uses projected future interest rates, which fall in Level 2 of the U.S. GAAP hierarchy as defined by FASB ASC Topic 820-10-35, as provided by counterparties to the interest rate swap agreements and the fixed rates that the Company is obligated to pay under the agreements. Fair Value of Long-Term Debt The Company estimates the fair value of its long-term debt using the market approach, which utilizes quoted market prices that fall under Level 2 of the U.S. GAAP fair value hierarchy as defined by ASC 820, Fair Value Measurement . |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | 7. Equity Below is a summary of changes in stockholders’ equity attributable to Cinemark USA, Inc., noncontrolling interests and total equity for the three and nine months ended September 30, 2020 and 2019: Class A Common Stock Class B Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings Accumulated Other Comprehensive Loss Total Cinemark USA, Inc. Stockholder's Equity Noncontrolling Interests Total Equity Balance at January 1, 2020 $ — $ 49,543 $ (24,233 ) $ 1,291,618 $ 484,883 $ (340,112 ) $ 1,461,699 $ 12,508 $ 1,474,207 Share based awards compensation expense — — — 3,882 — — 3,882 — 3,882 Dividends paid to parent — — — — (42,000 ) — (42,000 ) — (42,000 ) Dividends paid to noncontrolling interests — — — — — — — (392 ) (392 ) Net income (loss) — — — — (59,270 ) — (59,270 ) 169 (59,101 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — (24,171 ) (24,171 ) (24,171 ) Foreign currency translation adjustments — — — — — (57,625 ) (57,625 ) — (57,625 ) Balance at March 31, 2020 $ — $ 49,543 $ (24,233 ) $ 1,295,500 $ 383,613 $ (421,908 ) $ 1,282,515 $ 12,285 $ 1,294,800 Share based awards compensation expense — — — 4,092 — — 4,092 — 4,092 Net loss — — — — (169,951 ) — (169,951 ) (427 ) (170,378 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — 849 849 — 849 Amortization of accumulated losses for amended swap agreements — — — — — 2,669 2,669 — 2,669 Foreign currency translation adjustments — — — — — (3,702 ) (3,702 ) — (3,702 ) Balance at June 30, 2020 $ — $ 49,543 $ (24,233 ) $ 1,299,593 $ 213,662 $ (422,092 ) $ 1,116,473 $ 11,859 $ 1,128,332 Share based awards compensation expense — — — 4,198 — — 4,198 — 4,198 Net loss — — — — (144,431 ) — (144,431 ) (444 ) (144,875 ) Unrealized gain to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — 6,528 6,528 — 6,528 Amortization of accumulated losses for amended swap agreements — — — — — 2,669 2,669 — 2,669 Foreign currency translation adjustments — — — — — (1,503 ) (1,503 ) — (1,503 ) Balance at September 30, 2020 $ — $ 49,543 $ (24,233 ) $ 1,303,791 $ 69,231 $ (414,398 ) $ 983,934 $ 11,415 $ 995,349 Class A Common Stock Class B Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings Accumulated Other Comprehensive Loss Total Cinemark USA, Inc. Stockholder's Equity Noncontrolling Interests Total Equity Balance at January 1, 2019 $ — $ 49,543 $ (24,233 ) $ 1,277,921 $ 480,580 $ (319,007 ) $ 1,464,804 $ 12,379 $ 1,477,183 Cumulative effect of change in accounting principle, net of taxes of $6,054 — — — — 16,985 — 16,985 — 16,985 Share based awards compensation expense — — — 2,743 — — 2,743 — 2,743 Dividends paid to parent — — — — (39,575 ) — (39,575 ) — (39,575 ) Dividends paid to noncontrolling interests — — — — — — — (1,000 ) (1,000 ) Net income — — — — 33,177 — 33,177 465 33,642 Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — (3,311 ) (3,311 ) — (3,311 ) Other comprehensive loss in equity method investees — — — — — (71 ) (71 ) — (71 ) Foreign currency translation adjustments — — — — — 755 755 — 755 Balance at March 31, 2019 $ — $ 49,543 $ (24,233 ) $ 1,280,664 $ 491,167 $ (321,634 ) $ 1,475,507 $ 11,844 $ 1,487,351 Share based awards compensation expense — — — 3,447 — — 3,447 — 3,447 Dividends paid to parent — — — — (39,600 ) — (39,600 ) — (39,600 ) Dividends paid to noncontrolling interests — — — — — — — (294 ) (294 ) Net income — — — — 101,544 — 101,544 890 102,434 Other comprehensive loss in equity method investees — — — — (22 ) (22 ) — (22 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — (5,902 ) (5,902 ) — (5,902 ) Foreign currency translation adjustments — — — — — 4,925 4,925 — 4,925 Balance at June 30, 2019 $ — $ 49,543 $ (24,233 ) $ 1,284,111 $ 553,111 $ (322,633 ) $ 1,539,899 $ 12,440 $ 1,552,339 Share based awards compensation expense — — — 3,609 — — 3,609 — 3,609 Dividends paid to parent — — — — (39,650 ) — (39,650 ) — (39,650 ) Dividends paid to noncontrolling interests — — — — — — — (294 ) (294 ) Net income — — — — 31,796 — 31,796 602 32,398 Other comprehensive loss in equity method investees — — — — — (49 ) (49 ) — (49 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — (1,291 ) (1,291 ) — (1,291 ) Foreign currency translation adjustments — — — — — (25,408 ) (25,408 ) (25,408 ) Balance at September 30, 2019 $ — $ 49,543 $ (24,233 ) $ 1,287,720 $ 545,257 $ (349,381 ) $ 1,508,906 $ 12,748 $ 1,521,654 |
National CineMedia
National CineMedia | 9 Months Ended |
Sep. 30, 2020 | |
NCM | |
National CineMedia | 8. National CineMedia Below is a summary of activity with NCM included in the Company’s condensed consolidated financial statements: Investment in NCM NCM Screen Advertising Advances Distributions from NCM Equity in Loss Other Revenue Interest Expense - NCM Cash Received Balance as of January 1, 2020 $ 265,792 $ (348,354 ) Receipt of common units due to annual common unit adjustment ("CUA") 3,620 (3,620 ) $ — $ — $ — $ — $ — Screen rental revenues earned under ESA (1) — — — — (4,209 ) — 4,209 Interest accrued related to significant financing component — (17,726 ) — — — 17,726 — Receipt of excess cash distributions (14,168 ) — (6,975 ) — — — 21,143 Equity in loss (4,810 ) — — 4,810 — — — Amortization of screen advertising advances — 23,463 — — (23,463 ) — — Balance as of and for the nine months ended September 30, 2020 $ 250,434 $ (346,237 ) $ (6,975 ) $ 4,810 $ (27,672 ) $ 17,726 $ 25,352 (1) Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $2,243. Investment in National CineMedia NCM operates a digital in-theatre network in the U.S. for providing cinema advertising. The Company entered into an Exhibitor Services Agreement with NCM (“ESA”), pursuant to which NCM primarily provides advertising to our theatres. recognizes cash distributions it receives from NCM on its Tranche 1 Investment as a component of earnings as Distributions from NCM. Common Unit Adjustments In addition to the consideration received upon the NCMI IPO and ESA modification in 2007, the Company also periodically receives consideration in the form of common units from NCM. Pursuant to a Common Unit Adjustment Agreement dated as of February 13, 2007 between NCMI and the Company, annual adjustments to the common membership units are made primarily based on increases or decreases in the number of theatre screens operated and theatre attendance generated. As discussed in Note 5 to the Company’s financial statements as included in its 2019 Annual Report on Form 10-K, the common units received (collectively referred to as the Company’s “Tranche 2 Investment”) are recorded at estimated fair value as an increase in the Company’s investment in NCM with an offset to NCM screen advertising advances. The Company’s Tranche 2 Investment is accounted for following the equity method, with undistributed equity earnings related to its Tranche 2 Investment included as a component of earnings in equity in income of affiliates and distributions received related to its Tranche 2 Investment are recorded as a reduction of investment basis. During March 2020, NCM performed its annual common unit adjustment calculation under the Common Unit Adjustment Agreement. As a result of the calculation the Company received an additional 1,112,368 common units of NCM, each of which is convertible into one share of NCMI common stock. The Company recorded the additional common units received at estimated fair value with a corresponding adjustment to NCM screen advertising advances of approximately $3,620. The fair value of the common units received was estimated based on the market price of NCMI common stock at the time the common units were determined, adjusted for volatility associated with the estimated time period it would take to convert the common units and register the respective shares. As of September 30, 2020, the Company owned a total of 40,850,068 common units of NCM, representing an ownership interest of approximately 25%. Each of the Company’s common units in NCM is convertible into one share of NCM, Inc. common stock. As of September 30, 2020, the estimated fair value of the Company’s investment in NCM was approximately $111,112 based on NCM, Inc.’s stock price as of September 30, 2020 of $2.72 per share (Level 1 input as defined in FASB ASC Topic 820), which was below the Company’s carrying value of $250,434. The market value of NCM, Inc.’s stock price may vary due to the performance of the business, industry trends, general and economic conditions and other factors, including those resulting from the impact of COVID-19 (see Note 2). The Company does not believe that the decline in NCM, Inc.’s stock price is other than temporary Exhibitor Services Agreement As discussed above, the Company’s domestic theatres are part of the in-theatre digital network operated by NCM under the ESA. NCM provides advertising to the Company’s theatres through its branded “ Noovie NCM network and also earns screen advertising revenue on a per patron basis. Prior to September 17, 2019, the ESA was accounted for under ASC Topic 606, Rev enue from Contracts with Customers. Effective September 17, 2019, the Company signed an amendment to the ESA, under which the Company will provide incremental advertising time to NCM and has extended the term through February 2041 . Subsequent to the amendment, the ESA is accounted for as a lease under ASC Topic 842. The Company leases nonconsecutive periods of use of its domestic theatre screens to NCM for purposes of showing third party advertising content. The lease requires v ariable lease payments based on the number of patrons attending the showtimes during which such advertising is shown. The screen advertising revenues earned under the ESA, both before and after the amendment, are reflected in other revenue on the condense d consolidated income statement. The recognition of revenue related to the NCM screen advertising advances will be recorded on a straight-line basis through February 2041. Twelve Months Ended September 30, Remaining Maturity 2021 2022 2023 2024 2025 Thereafter Total NCM screen advertising advances $ 8,131 $ 8,693 $ 9,295 $ 9,940 $ 10,630 $ 299,548 $ 346,237 Significant Financing Component Prior to the September 17, 2019 amendment of the ESA, the Company applied a significant financing component, as required by ASC Topic 606, due to the significant length of time between receiving the NCM screen advertising advances (the $174,000 received at the NCMI IPO and the periodic common unit adjustments) and completion of the performance obligation. Effective September 17, 2019, upon the Company’s evaluation and determination that ASC Topic 842 applies to the amended ESA, the Company determined it acceptable to apply the significant financing component guidance from ASC Topic 606 by analogy as the economic substance of the agreement represents a financing arrangement. As a result of the significant financing component, the Company recognized incremental screen rental revenue and an offsetting interest expense of $23,463 and $17,726, respectively, during the nine months ended September 30, 2020. The interest expense was calculated using the Company’s incremental borrowing rates at the time when the cash was received from the NCMI IPO and each tranche of common units was received from NCM, which ranged from 4.4% to 8.3%. NCM Financial Information Below is summary financial information for NCM for the periods indicated: Three Three Months ended Nine Months Ended Nine Months Ended September 24, 2020 September 26, 2019 September 24, 2020 September 26, 2019 Gross revenues $ 6,000 $ 110,513 $ 74,700 $ 297,613 Operating income (loss) $ (20,073 ) $ 39,349 $ (38,973 ) $ 87,949 Net income (loss) $ (34,950 ) $ 25,307 $ (81,350 ) $ 45,907 As of As of September 24, 2020 December 26, 2019 Current assets $ 170,749 $ 185,400 Noncurrent assets $ 693,018 $ 706,600 Current liabilities $ 47,153 $ 125,500 Noncurrent liabilities $ 1,073,742 $ 947,800 Members deficit $ (257,128 ) $ (181,300 ) |
Other Investments
Other Investments | 9 Months Ended |
Sep. 30, 2020 | |
Financial Support For Nonconsolidated Legal Entity [Abstract] | |
Other Investments | 9. Other Investments Below is a summary of activity for each of the Company’s other investments for the nine months ended September 30, 2020: DCIP AC JV, LLC DCDC FE Concepts Other Total Balance at January 1, 2020 $ 124,696 $ 5,022 $ 3,169 $ 19,519 $ 2,879 $ 155,285 Cash distributions received (10,383 ) — (878 ) — — (11,261 ) Equity loss (20,083 ) (618 ) (1,197 ) (1,003 ) — (22,901 ) Other 50 — — — (2,584 ) (2,534 ) Balance at September 30, 2020 $ 94,280 $ 4,404 $ 1,094 $ 18,516 $ 295 $ 118,589 Digital Cinema Implementation Partners LLC (“DCIP”) On February 12, 2007, the Company, AMC and Regal (the “Exhibitors”) entered into a joint venture known as DCIP to facilitate the implementation of digital cinema in the Company’s theatres and to establish agreements with major motion picture studios for the financing of digital cinema. On March 10, 2010, DCIP and its subsidiaries completed an initial financing transaction to enable the purchase, deployment and leasing of digital projection systems to the Exhibitors under equipment lease and installation agreements. On March 31, 2011, DCIP obtained incremental financing necessary to complete the deployment of digital projection systems. DCIP also entered into long-term Digital Cinema Deployment Agreements (“DCDAs”) with six major motion picture studios pursuant to which Kasima LLC, one of DCIP’s subsidiaries, receives a virtual print fee ("VPF") each time the studio books a film or certain other content on the leased digital projection systems. Other content distributors entered into similar DCDAs that provide for the payment of VPFs for bookings of the distributor's content on a leased digital projection system. The DCDAs end on the earlier to occur of (i) the tenth anniversary of the "mean deployment date" for all digital projection systems scheduled to be deployed over a period of up to five years, or (ii) the date DCIP achieves "cost recoupment", each as defined in the DCDAs. Cost recoupment occurs when revenues attributable to the digital projection systems exceed the financing, deployment, administration and other costs associated with the purchase of the digital projection systems. DCIP expects cost recoupment to occur during 2021. The timing of cost recoupment is dependent on VPF payments from studios. Pursuant to the operating agreement between the Exhibitors and DCIP, DCIP began to distribute excess cash to the Exhibitors upon the payoff of its outstanding debt, which occurred during the year ended December 31, 2019. As of September 30, 2020, the Company had a 33% voting interest in DCIP and a 24.3% economic interest in DCIP. The Company accounts for its investment in DCIP and its subsidiaries under the equity method of accounting. Below is summary financial information for DCIP for the periods indicated: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Gross revenues $ 1,084 $ 40,200 $ 20,809 $ 125,869 Operating income (loss) $ (29,878 ) $ 22,617 $ (72,422 ) $ 73,396 Net income (loss) $ (30,554 ) $ 22,362 $ (79,660 ) $ 69,323 As of September 30, 2020 December 31, 2019 Current assets $ 28,299 $ 51,382 Noncurrent assets $ 461,276 $ 581,547 Current liabilities $ 58,375 $ 70,515 Noncurrent liabilities $ 710 $ 190 Members' equity $ 430,490 $ 562,224 As of September 30, 2020, the Company had 3,812 digital projection systems being leased under the master equipment lease agreement with Kasima LLC, which is an indirect subsidiary of DCIP and a related party to the Company. The Company had the following transactions with DCIP, reflected in utilities and other costs on the condensed consolidated statements of income, during the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Equipment lease payments (1) $ 346 $ 1,105 $ 1,384 $ 3,357 Warranty reimbursements from DCIP $ — $ (2,953 ) $ (3,123 ) $ (8,842 ) Management service fees $ — $ 128 $ 84 $ 438 (1) The Company negotiated an abatement of lease payments during the temporary closure of its theatres as a result of the COVID-19 pandemic. The Company did not remeasure its lease liabilities and lease right-of-use assets as a result of these negotiations in accordance with FASB guidance. See further discussion at Note 4. AC JV, LLC During December 2013, the Company, Regal, AMC (the “AC Founding Members”) and NCM entered into a series of agreements that resulted in the formation of AC JV, LLC (“AC”), a joint venture that owns “Fathom Events” formerly operated by NCM. The Fathom Events business focuses on the marketing and distribution of live and pre-recorded entertainment programming to various theatre operators, including concerts, opera and symphony, DVD product releases and marketing events, theatrical premieres, Broadway plays, live sporting events and other special events. The Company paid event fees to AC of $2,258 and $10,332 for the nine months ended September 30, 2020 and 2019, respectively, which are included in film rentals and advertising costs on the condensed consolidated statements of income. The Company accounts for its investment in AC under the equity method of accounting. Digital Cinema Distribution Coalition Digital Cinema Distribution Coalition (“DCDC”) is a joint venture among the Company, Universal, Warner Bros., AMC and Regal. DCDC operates a satellite distribution network that distributes all digital content to U.S. theatres via satellite. The Company has an approximate 14.6% ownership in DCDC. The Company paid approximately $208 and $703 to DCDC during the nine months ended September 30, 2020 and 2019, respectively, related to content delivery services provided by DCDC. These fees are included in film rentals and advertising costs on the condensed consolidated statements of income. The Company accounts for its investment in DCDC under the equity method of accounting. FE Concepts, LLC During April 2018, the Company, through its wholly-owned indirect subsidiary CNMK Texas Properties, LLC (“CNMK”), formed a joint venture, FE Concepts, LLC (“FE Concepts”) with AWSR Investments, LLC (“AWSR”), an entity owned by Lee Roy Mitchell and Tandy Mitchell. FE Concepts operates a family entertainment center that offers bowling, gaming, movies and other amenities that opened during December 2019. The Company and AWSR each invested approximately $20,000 and each have a 50% voting interest in FE Concepts. The Company accounts for its investment in FE Concepts under the equity method of accounting. The Company has a theatre services agreement with FE Concepts under which it provides film booking and equipment monitoring services. The Company recorded $3 and $19 of theatre services revenue under the agreement during the three and nine months ended September 30, 2020, respectively. Additional Considerations Each of the investments above have been adversely impacted by the COVID-19 pandemic (see Note 2) due to the temporary closure of theatres across the U.S. The Company does not believe that any resulting decline in value of the underlying investments is other than temporary as the Company and other industry participants, who also have equity ownership interests in certain of the above investments, have reopened some theatres and will continue to reopen theatres as local government restrictions allow. The Company expects the industry to recover gradually over time. |
Share Based Awards
Share Based Awards | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Awards | 10 . Share Based Awards Restricted Stock – During the nine months ended September 30, 2020, Cinemark Holdings, Inc. granted 1,045,885 shares of restricted stock to its directors and employees of the Company. The fair value of the restricted stock granted was determined based on the market value of Cinemark Holdings, Inc.’s common stock on the dates of grant, which ranged from $8.39 to $32.12 per share. The Company assumed forfeiture rates for the restricted stock awards that ranged from 0% to 10%. The restricted stock awards vest over periods ranging from one to four years. The recipients of restricted stock are entitled to receive non-forfeitable dividends and to vote their respective shares, however, the sale and transfer of the restricted shares is prohibited during the restriction period. Below is a summary of restricted stock activity for the nine months ended September 30, 2020: Shares of Weighted Average Restricted Grant Date Stock Fair Value Outstanding at January 1, 2020 783,823 $ 37.53 Granted 1,045,885 $ 18.35 Vested (326,281 ) $ 35.63 Forfeited (56,133 ) $ 33.63 Outstanding at September 30, 2020 1,447,294 $ 24.25 Unvested restricted stock at September 30, 2020 1,447,294 $ 24.25 Nine Months Ended September 30, 2020 2019 Compensation expense recognized by the Company during the period $ 7,548 $ 6,769 Additional compensation expense recognized by Cinemark Holdings, Inc. during the period $ 687 $ 687 Fair value of restricted shares held by Company employees that vested during the period $ 8,567 $ 6,650 Fair value of restricted shares held by Cinemark Holdings, Inc.’s directors that vested during the period $ 377 $ 980 Income tax benefit recognized upon vesting of restricted stock awards held by Company employees $ 2,533 $ 1,228 Additional income tax benefit recognized upon vesting of restricted stock awards held by Cinemark Holdings, Inc.'s directors $ 145 $ 245 As of September 30, 2020, the estimated remaining unrecognized compensation expense related to unvested restricted stock awards was $22,858, of which $22,208 will be recognized by the Company and $650 will be recognized by Cinemark Holdings, Inc. The weighted average period over which this remaining compensation expense will be recognized is approximately two years. Impact of 2020 Restructuring Plan - As part of the Company’s employee-related restructuring actions discussed in Note 2, the vesting period for certain share based awards will be accelerated on a pro-rata basis based upon the grant dates and each employee’s separation date. The Company considers the accelerated vest of these awards to be a modification under ASC Topic 718 . Based on the terms of the severance agreements, the Company estimated the number of awards expected to vest at each employee’s expected separation date and revalued such awards based on the modification date, or the date on which employees were notified of the 2020 Restructuring Plan. The modification date fair value per share was $15.95. The Company recorded incremental compensation expense of approximately $521 related to these modifications, which is reflected in restructuring costs on the Company’s condensed consolidated income statement. Restricted Stock Units – During the nine months ended September 30, 2020, Cinemark Holdings, Inc. granted restricted stock units representing 436,681 hypothetical shares of common stock to employees of the Company. The restricted stock units vest based on a combination of financial performance factors and continued service. The financial performance factors are based on an implied equity value concept that determines an internal rate of return (“IRR”) during the two fiscal year periods ending December 31, 2021 based on a formula utilizing a multiple of Adjusted EBITDA subject to certain adjustments as specified by the Compensation Committee pri or to the grant date . The financial performance factors for the restricted stock units have a threshold, target and maximum level of payment opportunity and vest on a prorata basis according to the IRR achieved by the Company during the performance perio d. If the IRR for the two-year period is at least 6 %, which is the threshold, one-third of the maximum restricted stock units vest. If the IRR for the two-year period is at least 8 %, which is the target, two-thirds of the maximum restricted stock units vest. If the IRR for the two-year period is at least 14 %, which is the maximum, 100 % of the maximum restricted stock units vest. Grantees are eligible to receive a ratable portion of the common stock issuable if t he IRR is within the targets previously noted. Further, as an example, if the Company achieves an IRR equal to 11 %, the number of restricted stock units that shall vest will be greater than the target but less than the maximum number that would have vest ed had the Company achieved the highest IRR. All restricted stock units granted during 2020 will vest subject to an additional two-year service requirement and will be paid in the form of Cinemark Holdings, Inc.’s common stock if the participant continues to provide services through the fourth anniversary of the grant date . Restricted stock unit award participants are eligible to receive dividend equivalent payments from the grant date if, and at the time that, the restricted stock unit awards vest. Below is a table summarizing the potential number of shares that could vest under restricted stock unit awards granted during the nine months ended September 30, 2020 Number of Shares Value at Vesting Grant at IRR of at least 6% 190,707 $ 6,125 at IRR of at least 8% 286,060 $ 9,188 at IRR of at least 14% 436,681 $ 14,026 Due to the fact that the IRR for the two-year performance period could not be determined at the time of the 2020 grant, the Company estimated that the most likely outcome is the achievement of the target IRR level. The fair value of the restricted stock unit awards was determined based on the closing price of Cinemark Holdings, Inc.’s common stock on the date of grant, which was $32.12 per share. The Company assumed a forfeiture rate of 5% for the restricted stock unit awards. If during the service period, additional information becomes available to lead the Company to believe a different IRR level will be achieved for the two-year performance period, the Company will reassess the number of units that are expected to vest for the grant and adjust its compensation expense accordingly on a prospective basis over the remaining service period. Nine Months Ended September 30, 2020 2019 Number of restricted stock unit awards that vested during the period 120,293 88,074 Fair value of restricted stock unit awards that vested during the period $ 3,669 $ 3,550 Accumulated dividends paid upon vesting of restricted stock unit awards $ 576 $ 375 Compensation expense recognized during the period $ 4,624 $ 3,030 Income tax benefit recognized upon vesting of restricted stock unit awards $ 215 $ 175 As of September 30, 2020, the estimated remaining unrecognized compensation expense related to the outstanding restricted stock unit awards was $13,559. The weighted average period over which this remaining compensation expense will be recognized is approximately two years. As of September 30, 2020, the Company had restricted stock units outstanding that represented a total of 978,591 hypothetical shares of common stock, net of forfeitures, assuming an IRR of 9.3% was achieved for the 2017 grants, an IRR of 8.6% was achieved for the 2018 grants and the maximum IRR level is achieved for all other grants outstanding. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 11. Goodwill and Other Intangible Assets A summary of the Company’s goodwill is as follows: U.S. Operating Segment International Operating Segment Total Balance at January 1, 2020 (1) $ 1,182,853 $ 100,518 $ 1,283,371 Impairment — (16,128 ) (16,128 ) Foreign currency translation adjustments — (17,816 ) (17,816 ) Balance at September 30, 2020 $ 1,182,853 $ 66,574 $ 1,249,427 (1) Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. (2) See Note 12 for discussion of impairment evaluations performed during the nine months ended September 30, 2020. A summary of the Company’s intangible assets is as follows: Balance at January 1, 2020 Amortization Other (1) Balance at September 30, 2020 Intangible assets with finite lives: Gross carrying amount $ 85,007 $ — $ (2,018 ) $ 82,989 Accumulated amortization (63,924 ) (3,569 ) — (67,493 ) Total net intangible assets with finite lives $ 21,083 $ (3,569 ) $ (2,018 ) $ 15,496 Intangible assets with indefinite lives: Tradename and other 300,686 — (613 ) 300,073 Total intangible assets — net $ 321,769 $ (3,569 ) $ (2,631 ) $ 315,569 (1) Amount primarily represents foreign currency translation adjustments. The estimated aggregate future amortization expense for intangible assets is as follows: For the three months ended December 31, 2020 $ 1,373 For the twelve months ended December 31, 2021 2,765 For the twelve months ended December 31, 2022 2,612 For the twelve months ended December 31, 2023 2,514 For the twelve months ended December 31, 2024 2,514 Thereafter 3,718 Total $ 15,496 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 9 Months Ended |
Sep. 30, 2020 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | |
Impairment of Long-Lived Assets | 12. Impairment of Long-Lived Assets Due to the temporary closure of the Company’s theatres effective March 18, 2020 as a result of the COVID-19 pandemic (see Note 2), the Company performed long-lived asset impairment evaluations during each quarter during the nine months ended September 30, 2020. The following table is a summary of the evaluations performed by asset classification. Impairment Asset Valuation Valuation Test Category Approach Multiple First Quarter Quantitative Goodwill Market (1) 8 times Tradename Intangible Assets Income N/A Other Long-Lived Assets Market 6 times Second Quarter Qualitative Goodwill N/A N/A Tradename Intangible Assets N/A N/A Other Long-Lived Assets N/A N/A Third Quarter Quantitative Goodwill Market (1) 2.9 to 7 times Tradename Intangible Assets Income N/A Other Long-Lived Assets Market 3.2 to 6 times (1) The Company also used the income approach to test goodwill for impairment for the respective period. Goodwill – The Company evaluates goodwill for impairment as follows: • Quantitative approach The Company evaluates goodwill for impairment at the reporting unit level and has allocated goodwill to the reporting unit based on an estimate of its relative fair value. Management considers the reporting unit to be each of its twenty regions in the U.S. and seven countries internationally with Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala considered one reporting unit (the Company does not have goodwill recorded for all of its international locations). Under its quantitative goodwill impairment analysis, the Company estimates the fair value of each reporting unit and compares it with its carrying value. Fair value is determined using the market approach, which is the most common valuation approach for the Company’s industry and based on a multiple of cash flows for each reporting unit. The Company also performed its quantitative goodwill impairment analysis using the income approach to further validate the results of the assessment under the market approach. Significant judgment, including management’s estimates of the impact of temporary theatre closures and other considerations as a result of COVID-19, is involved in estimating future cash flows and fair values. The Company’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy as defined by FASB ASC Topic 820-10-35, are based on projected operating performance of each reporting unit, relevant market transactions and industry trading multiples. • Qualitative approach The Company’s qualitative assessment of goodwill for each reporting unit considers economic and market conditions, industry trading multiples and the impact of recent developments and events on the estimated fair values as determined during its most recent quantitative assessment Tradename Intangible assets – The Company evaluates tradename intangible assets for impairment as follows: • Quantitative approach The Company compares the carrying values of tradename assets to their estimated fair values. Fair values were estimated by applying an estimated market royalty rate that could be charged for the use of the tradenames to forecasted future revenues, with an adjustment for the present value of such royalties. Significant judgment, including management’s estimate of market royalty rates and long-term revenue forecasts, is involved in estimating the tradename fair values. Management’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy as defined by FASB ASC Topic 820-10-35, were based on projected revenue performance and expected industry trends, considering the temporary closure of its theatres and other considerations as a result of COVID-19. • Qualitative approach The Company’s qualitative assessment considers industry and market conditions and recent developments that may impact the revenues forecasts and other estimates used in its most recent quantitative assessment. Other Long-lived Assets – The Company evaluates other long-lived assets for impairment as follows: • Quantitative appro ach The Company performs a quantitative evaluation at the theatre level using estimated undiscounted cash flows from continuing use through the remainder of the theatre’s useful life. Significant judgment, including management’s estimate of the impact of temporary theatre closures and other considerations as a result of COVID-19, was involved in estimating cash flows and fair value. Fair value is determined based on a multiple of cash flows. Management’s estimates, which fall under Level 3 of the U.S. GA AP fair value hierarchy, as defined by FASB ASC Topic 820-10-35, are based on projected operating performance, market transactions and industry trading multiples. • Qualitative approach The Company’s qualitative assessment considers relevant market transactions, industry trading multiples and recent developments that would impact its estimates of future cash flows. The following table is a summary of the impairment recorded as a result of the evaluations discussed above during the three and nine months ended September 30, 2020: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. Segment Theatre properties $ 2,075 $ 24,502 $ 5,718 $ 26,754 Theatre operating lease right-of-use assets 1,123 2,157 7,075 10,204 Cost method investment 2,500 — 2,500 — U.S. total 5,698 26,659 15,293 36,958 International segment Theatre properties 938 645 5,422 6,796 Theatre operating lease right-of-use assets 1,654 — 4,194 1,628 Goodwill 16,128 — 16,128 — Intangible assets 177 — 177 — International total 18,897 645 25,921 8,424 Total Impairment $ 24,595 $ 27,304 $ 41,214 $ 45,382 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements The Company determines fair value measurements in accordance with ASC Topic 820, which establishes a fair value hierarchy under which an asset or liability is categorized based on the lowest level of input significant to its fair value measurement. The levels of input defined by ASC Topic 820 are as follows: Level 1 – quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date; Level 2 – other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable and should be used to measure fair value to the extent that observable inputs are not available. Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of September 30, 2020 and December 31, 2019: Carrying Fair Value Hierarchy Description As of, Value Level 1 Level 2 Level 3 Interest rate swap liabilities (1) September 30, 2020 $ 36,484 $ — $ 36,484 $ — Interest rate swap liabilities (1) December 31, 2019 $ 15,995 $ — $ 15,995 $ — (1) See further discussion of interest rate swaps at Note 6. The Company uses the market approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its goodwill, intangible assets and long-lived assets (see Note 12 and Note 13). See additional explanation of fair value measurement techniques used for long-lived assets, goodwill and intangible assets in “Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 , filed February 21, 2020 . There were no changes in valuation techn iques. The Company elected to perform its goodwill impairment evaluation using both the market approach and the income approach for the nine months ended September 30, 2020 . There were no transfers in to or out of Level 1, Level 2 or Lev el 3 during the nine months ended September 30, 2020 . |
Foreign Currency Translation
Foreign Currency Translation | 9 Months Ended |
Sep. 30, 2020 | |
Foreign Currency [Abstract] | |
Foreign Currency Translation | 14. Foreign Currency Translation The accumulated other comprehensive loss account in stockholders’ equity of $414,398 and $340,112 as of September 30, 2020 and December 31, 2019, respectively, primarily includes cumulative foreign currency net losses of $390,881 and $328,053, respectively, from translating the financial statements of the Company’s international subsidiaries and the cumulative changes in fair value of the Company’s interest rate swap agreements that are designated as hedges. As of September 30, 2020, all foreign countries where the Company has operations, other than Argentina, are non-highly inflationary, and the local currency is the same as the functional currency in all of the locations. Thus, any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss. The Company deemed Argentina to be highly inflationary beginning July 1, 2018. A highly inflationary economy is defined as an economy with a cumulative inflation rate of approximately 100 percent or more over a three-year Foreign Currency Matters Below is a summary of the impact of translating the September 30, 2020 and 2019 financial statements of the Company’s international subsidiaries: Other Comprehensive Income (Loss) for Exchange Rate as of Nine Months Ended Country September 30, 2020 December 31, 2019 September 30, 2020 September 30, 2019 Brazil 5.63 4.02 $ (51,453 ) $ (14,492 ) Chile 785.93 736.86 (5,046 ) (4,017 ) Colombia 3,878.95 3,277.14 (2,584 ) (1,507 ) Peru 3.62 3.37 (3,187 ) (203 ) All other (560 ) 491 $ (62,830 ) $ (19,728 ) (1) Beginning July 1, 2018, Argentina was deemed highly inflationary. A gain of $1,053 and a loss of $3,356 for the nine months ended September 30, 2020 and 2019, respectively, is reflected as foreign currency exchange gain (loss) on the Company’s condensed consolidated statement of income as a result of translating Argentina financial results to U.S. dollars. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 15. Supplemental Cash Flow Information The following is provided as supplemental information to the condensed consolidated statements of cash flows: Nine Months Ended September 30, 2020 2019 Cash paid for interest $ 53,364 $ 56,326 Cash paid (refunds received) for income taxes, net $ (108,776 ) $ 69,498 Noncash investing and financing activities: Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment (1) $ (7,933 ) $ (13,642 ) Interest expense - NCM (see Note 8) $ (17,726 ) $ (14,180 ) Investment in NCM – receipt of common units (see Note 8) $ 3,620 $ 1,552 (1) Additions to theatre properties and equipment included in accounts payable as of September 30, 2020 and December 31, 2019 were $7,058 and $14,991, respectively. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments | 16. Segments The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit an d loss to evaluate performance and allocate its resources. The Company does not report total assets by segment because that information is not used to evaluate the performance of or allocate resources between segments. Below is a breakdown of selected financial information by reportable operating segment: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Revenues U.S. $ 34,639 $ 636,628 $ 472,096 $ 1,941,545 International 1,069 188,772 118,061 563,509 Eliminations (230 ) (3,583 ) (2,089 ) (10,758 ) Total revenues $ 35,478 $ 821,817 $ 588,068 $ 2,494,296 Adjusted EBITDA U.S. $ (105,279 ) $ 132,705 $ (144,918 ) $ 454,665 International (22,232 ) 37,411 (33,459 ) 113,346 Total Adjusted EBITDA $ (127,511 ) $ 170,116 $ (178,377 ) $ 568,011 Capital expenditures U.S. $ 17,903 $ 50,679 $ 54,604 $ 148,609 International 2,756 20,664 13,014 37,903 Total capital expenditures $ 20,659 $ 71,343 $ 67,618 $ 186,512 The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net income (loss) $ (144,875 ) $ 32,398 $ (374,354 ) $ 168,474 Add (deduct): Income taxes (119,273 ) 14,193 (220,287 ) 64,615 Interest expense (1) 32,235 24,967 87,942 75,037 Other (income) expense, net (2) 22,907 (9,964 ) 47,412 (25,059 ) Cash distributions from DCIP (3) — 2,694 10,383 7,912 Cash distributions from other equity investees (4) 2,146 5,804 15,047 20,251 Depreciation and amortization 62,543 67,760 191,380 196,795 Impairment of long-lived assets 24,595 27,304 41,214 45,382 Restructuring costs 524 — 20,062 — (Gain) loss on disposal of assets and other (13,327 ) 2,453 (10,997 ) 8,057 Non-cash rent expense 816 (1,102 ) 1,649 (3,252 ) Share based awards compensation expense 4,198 3,609 12,172 9,799 Adjusted EBITDA $ (127,511 ) $ 170,116 $ (178,377 ) $ 568,011 (1) Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. (2) Includes interest income, foreign currency exchange gain (loss), equity in income of affiliates and interest expense - NCM and excludes distributions from NCM. (3) See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 9. These distributions are reported entirely within the U.S. operating segment. (4) Includes cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances (see Notes 8 and 9). These distributions are reported entirely within the U.S. operating segment. Financial Information About Geographic Areas Below is a breakdown of selected financial information by geographic area: Three Months Ended Nine Months Ended September 30, September 30, Revenues 2020 2019 2020 2019 U.S. $ 34,639 $ 636,628 $ 472,096 $ 1,941,545 Brazil 513 79,776 53,829 240,263 Other international countries 556 108,996 64,232 323,246 Eliminations (230 ) (3,583 ) (2,089 ) (10,758 ) Total $ 35,478 $ 821,817 $ 588,068 $ 2,494,296 As of As of Theatre Properties and Equipment-net September 30, 2020 December 31, 2019 U.S. $ 1,324,924 $ 1,436,275 Brazil 71,338 118,367 Other international countries 149,561 180,605 Total $ 1,545,823 $ 1,735,247 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related Party Transactions The Company manages theatres for Laredo Theatre, Ltd. (“Laredo”). The Company is the sole general partner and owns 75% of the limited partnership interests of Laredo. Lone Star Theatres, Inc. owns the remaining 25% of the limited partnership interests in Laredo and is 100% owned by Mr. David Roberts, Lee Roy Mitchell’s son-in-law. Lee Roy Mitchell is Cinemark Holdings, Inc.’s Chairman of the Board of Directors and directly and indirectly owns approximately 8% of Cinemark Holdings, Inc.’s common stock. Under the agreement, management fees are paid by Laredo to the Company at a rate of 5% of annual theatre revenues up to $50,000 and 3% of annual theatre revenues in excess of $50,000. The Company recorded $123 and $539 of management fee revenues during the nine months ended September 30, 2020 and 2019, respectively. All such amounts are included in the Company’s condensed consolidated financial statements with the intercompany amounts eliminated in consolidation. The Company has an Aircraft Time Sharing Agreement with Copper Beech Capital, LLC (“Copper Beech”) to use, on occasion, a private aircraft owned by Copper Beech. Copper Beech is owned by Mr. Mitchell and his wife, Tandy Mitchell. The private aircraft is used by Mr. Mitchell and other executives who accompany Mr. Mitchell to business meetings for the Company. The Company reimburses Copper Beech for the actual costs of fuel usage and the expenses of the pilots, landing fees, storage fees and similar expenses incurred during the trip. For the nine months ended September 30, 2020 and 2019, the aggregate amounts paid to Copper Beech for the use of the aircraft was $12 and $111, respectively. The Company leases 14 theatres and one parking facility from Syufy Enterprises, LP (“Syufy”) or affiliates of Syufy. Raymond Syufy is one of Cinemark Holdings, Inc.’s directors and is an officer of the general partner of Syufy. Of these 15 leases, 14 have fixed minimum annual rent. The one lease without minimum annual rent has rent based upon a specified percentage of gross sales as defined in the lease. For the nine months ended September 30, 2020 and 2019, the Company paid total rent of approximately $17,271 and $20,006, respectively, to Syufy. The Company negotiated a deferral of rent payments for April, May and June of 2020 for 4 of the 14 leased theatres to be paid back over the months of July through December of 2020. The Company did not remeasure its lease liabilities and lease right-of-use assets as a result of these negotiations in accordance with FASB guidance. See further discussion at Note 4. The Company has a 50% voting interest in FE Concepts, a joint venture with AWSR, an entity owned by Lee Roy Mitchell and Tandy Mitchell. FE Concepts operates a family entertainment center that offers bowling, gaming, movies and other amenities that opened during December 2019. See Note 9 for further discussion. The Company has a theatre services agreement with FE Concepts under which the Company receives management fees for providing film booking and equipment monitoring services for the facility. The Company recorded $19 of management fees during the nine months ended September 30, 2020. 2020 a nd December 31, 2019 was $ 27,767 and $ 24,319 , respectively. The Company paid Cinemark Holdings, Inc. cash dividends of $ 42,000 and $ 118,825 during the nine months ended September 30, 2020 and 2019 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies From time to time, the Company is involved in various legal proceedings arising from the ordinary course of its business operations, such as personal injury claims, employment matters, patent claims, landlord-tenant disputes, contractual disputes with landlords over certain termination rights or the right to discontinue rent payments due to the COVID-19 pandemic and other contractual disputes, some of which are covered by insurance. The Company believes its potential liability with respect to proceedings currently pending is not material, individually or in the aggregate, to the Company’s financial position, results of operations and cash flows. Intertrust Technologies Corporation (“Intertrust”) v. Cinemark Holdings, Inc., Regal, AMC, et al. This case was filed against the Company on August 7, 2019 in the Eastern District of Texas – Marshall Division alleging patent infringement. The Company firmly maintains that the contentions of the Plaintiff are without merit and will vigorously defend itself against the lawsuit. Although the Company does not believe that it has infringed on any of Intertrust’s patents, it cannot predict the outcome of this litigation. Flagship Theatres of Palm Desert, LLC d/b/a Cinemas Palme D’Or v. Century Theatres, Inc., and Cinemark USA, Inc.; Superior Court of the State of California, County of Los Angeles . Plaintiff in this case alleges that the Company violated California antitrust and unfair competition laws by engaging in “circuit dealing” with various motion picture distributors and tortiously interfered with Plaintiff’s business relationships. Plaintiff seeks compensatory damages, trebling of those damages under California law, punitive damages, injunctive relief, attorneys’ fees, costs and interest. Plaintiff also alleges that the Company’s conduct ultimately resulted in closure of its theatre in June 2016. The Company denied the allegations. In 2008, the Company moved for summary judgment on Plaintiff’s claims, arguing primarily that clearances between the theatres at issue were lawful and that Plaintiff lacked proof sufficient to support certain technical elements of its antitrust claims. The trial court granted that motion and dismissed Plaintiff’s claims. Plaintiff appealed and, in 2011, the Court of Appeal reversed, holding, among other things, that Plaintiff’s claims were not about the illegality of clearances but were focused, instead, on “circuit dealing.” Having re-framed the claims in that manner, the Court of Appeal held that the trial court’s decision to limit discovery to the market where the theatres at issue operated was an error, as “circuit dealing” necessarily involves activities in different markets. Upon return to the trial court, the parties engaged in additional, broadened discovery related to Plaintiff’s “circuit dealing” claim. Thereafter, the Company moved again for summary judgment on all of Plaintiff’s claims. That new motion for summary judgment was pending when, on or about April 11, 2014, the trial court granted the Company’s motion for terminating sanctions and entered a judgment dismissing the case with prejudice. Plaintiff then appealed that second dismissal, seeking to have the judgment reversed and the case remanded to the trial court. The Court of Appeal issued a ruling on May 24, 2016, reversing the granting of terminating sanctions and instead imposed a lesser evidentiary and damages preclusion sanction. The case returned to the trial court on October 6, 2016. On May 10, 2018, after a five-week jury trial, the jury found no liability on one circuit dealing claim and awarded Plaintiff damages on the other claim, which are tripled for antitrust damage awards. Plaintiff would also be entitled to certain court costs and to seek at least some portion of its attorney’s fees. During 2018, the Company recorded a litigation reserve based on the jury award, court costs and attorney’s fees. The trial court denied a motion for a judgment notwithstanding the verdict and a motion for a new trial. The Company appealed the judgment. On October 2, 2020 the Court of Appeals of the State of California reversed the judgement in favor of the Plaintiff and rendered judgement in favor of the Company. Plaintiff has agreed to not appeal this ruling to the California Supreme Court; therefore, the ruling in favor of the Company is final and non-appealable. The Company reversed the litigation reserve in the third quarter of 2020. |
Summary Financial Information o
Summary Financial Information of Subsidiary Guarantors | 9 Months Ended |
Sep. 30, 2020 | |
Statement Of Financial Position [Abstract] | |
Summary Financial Information of Subsidiary Guarantors | 19. Summary Financial Information of Subsidiary Guarantors As of September 30, 2020, the Company had outstanding $400,000 aggregate principal amount of 5.125% senior notes due 2022, or the 5.125% Senior Notes, $755,000 aggregate principal amount of 4.875% senior notes due 2023, or the 4.875% Senior Notes, and $250,000 aggregate principal amount of the 8.750% secured notes due 2023, or the 8.750% Secured Notes (collectively the “Notes”). These Notes are fully and unconditionally guaranteed on a joint and several basis by the following subsidiaries (collectively the “Guarantor Subsidiaries”) of Cinemark USA, Inc.: Sunnymead Cinema Corp., Cinemark Properties, Inc., Greeley Holdings, Inc., Cinemark Partners I, Inc., CNMK Investments, Inc., CNMK Texas Properties, LLC., Cinemark Concessions LLC, Century Theatres, Inc., Marin Theatre Management, LLC, Century Theatres NG, LLC, Cinearts LLC, Cinearts Sacramento, LLC, Corte Madera Theatres, LLC, Novato Theatres, LLC, San Rafael Theatres, LLC, Northbay Theatres, LLC, Century Theatres Summit Sierra, LLC and Century Theatres Seattle, LLC. The following tables include summary financial information for stand-alone Cinemark USA, Inc. (the “Parent” and “Issuer”) and the Guarantor Subsidiaries in the aggregate, all of which reflect all investments in subsidiaries as if accounted for under the equity method of accounting. As such, net income (loss) for each of the Parent and Guarantors reflects equity income (loss) of their respective subsidiaries. All amounts are presented prior to elimination entries necessary to consolidate the Parent and all of its subsidiaries. As of September 30, 2020 Parent Guarantors Summary Balance Sheet Information Current assets $ 341,689 $ 186,027 Noncurrent assets $ 4,410,997 $ 1,396,608 Current liabilities $ 536,760 $ 138,020 Long-term liabilities $ 3,231,989 $ 474,683 Stockholder's equity $ 983,937 $ 969,933 As of December 31, 2019 Parent Guarantors Summary Balance Sheet Information Current assets $ 244,063 $ 444,481 Noncurrent assets $ 4,820,174 $ 1,403,687 Current liabilities $ 573,273 $ 147,366 Long-term liabilities $ 3,029,265 $ 500,566 Stockholder's equity $ 1,461,699 $ 1,200,236 Nine Months Ended September 30, 2020 Parent Guarantors Summary Income Statement Information Revenues $ 224,915 $ 266,091 Operating loss $ (193,236 ) $ (161,599 ) Net loss $ (373,653 ) $ (157,502 ) |
Impact of COVID-19 (Tables)
Impact of COVID-19 (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
2020 Restructuring Plan | |
Unusual Or Infrequent Item [Line Items] | |
Schedule of Restructuring Plan and Obligations Remained Outstanding | The following table summarizes the costs of the 2020 Restructuring Plan, payments made, noncash write-offs and the remaining liability at September 30, 2020: U.S. Operating Segment International Operating Segment Consolidated Employee-related Costs Facility Closure Costs Total Charges Employee-related Costs Facility Closure Costs Total Charges Employee-related Costs Facility Closure Costs Total Charges Restructuring charges during the three months ended June 30, 2020 $ 8,955 $ 7,589 $ 16,544 $ 163 $ 2,831 $ 2,994 $ 9,118 $ 10,420 $ 19,538 Amounts paid (90 ) (482 ) (572 ) — (42 ) (42 ) (90 ) (524 ) (614 ) Noncash write-offs — 88 88 — (2,374 ) (2,374 ) — (2,286 ) (2,286 ) Reserve balance at June 30, 2020 $ 8,865 $ 7,195 $ 16,060 $ 163 $ 415 $ 578 $ 9,028 $ 7,610 $ 16,638 Restructuring charges during the three months ended September 30, 2020 (1) — 154 154 17 353 370 17 507 524 Amounts paid (6,521 ) (436 ) (6,957 ) (180 ) (313 ) (493 ) (6,701 ) (749 ) (7,450 ) Noncash write-offs — 47 47 — (129 ) (129 ) — (82 ) (82 ) Reserve balance at September 30, 2020 $ 2,344 $ 6,960 $ 9,304 $ — $ 326 $ 326 $ 2,344 $ 7,286 $ 9,630 |
Lease Accounting (Tables)
Lease Accounting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Aggregate Lease Costs by Lease Classification | The following table represents the Company’s aggregate lease costs, by lease classification, for the periods presented. Three Months Ended Nine Months Ended September 30 September 30 Lease Cost Classification 2020 2019 2020 2019 Operating lease costs Equipment (1) Utilities and other $ 823 $ 1,569 $ 2,495 $ 5,173 Real Estate (2)(3) Facility lease expense 65,970 88,149 211,088 262,783 Total operating lease costs $ 66,793 $ 89,718 $ 213,583 $ 267,956 Finance lease costs Amortization of leased assets Depreciation and amortization $ 3,665 $ 3,703 $ 11,052 $ 11,182 Interest on lease liabilities Interest expense 1,725 1,922 5,333 5,927 Total finance lease costs $ 5,390 $ 5,625 $ 16,385 $ 17,109 (1) Includes approximately $(267) and $452 of short-term lease payments for the three months ended September 30, 2020 and 2019, respectively. Includes approximately $(839) and $1,808 of short-term lease payments for the nine months ended September 30, 2020 and 2019, respectively. The amounts for the three and nine months ended September 30, 2020 were impacted by i) a decrease in short term lease payments while theatres were closed and ii) rent abatements on leases that were not recalculated in accordance with the FASB guidance discussed above, which resulted in variable rent credits in the amount of the rent abatements. (2) Includes approximately $(191) and $18,591 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the three months ended September 30, 2020 and 2019, respectively. Includes approximately $9,146 and $54,209 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the nine months ended September 30, 2020 and 2019. The amounts for the three and nine months ended September 30, 2020 were impacted by rent abatements on leases that were not recalculated in accordance with the FASB guidance discussed above, which resulted in variable rent credits in the amount of the rent abatements. (3) Approximately $335 and $400 of lease payments are included in general and administrative expenses primarily related to office leases for the three months ended September 30, 2020 and 2019, respectively. Approximately $1,122 and $1,184 of lease payments are included in general and administrative expenses primarily related to office leases for the nine months ended September 30, 2020 and 2019, respectively. |
Schedule of Minimum Cash Lease Payments | The following table represents the minimum cash lease payments included in the measurement of lease liabilities and the non-cash addition of assets for the periods indicated. Nine Months Ended September 30, Other Information 2020 2019 Contractual cash payments included in the measurement of lease liabilities (1) Cash outflows for operating leases $ 205,276 $ 211,940 Cash outflows for finance leases - operating activities $ 5,304 $ 5,756 Cash outflows for finance leases - financing activities $ 11,497 $ 10,830 Non-cash amount of leased assets obtained in exchange for: Operating lease liabilities - real estate $ 84,209 $ 53,526 Operating lease liabilities - equipment $ 32 $ 668 Finance lease liabilities $ — $ — (1) As discussed above at Lease Deferrals and Abatements |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated Based on Type of Good Or Service By Reportable Operating Segment and On Timing of Revenue Recognition | The following tables present revenues for the three and nine months ended September 30, 2020 and 2019, disaggregated based on major type of good or service and by reportable operating segment and disaggregated based on timing of revenue recognition. Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 U.S. International U.S. International Operating Operating Operating Operating Major Goods/Services Segment (1) Segment Consolidated Segment (1) Segment Consolidated Admissions revenues $ 14,794 $ 107 $ 14,901 $ 247,157 $ 60,243 $ 307,400 Concession revenues 8,861 255 9,116 161,674 37,922 199,596 Screen advertising, screen rental and promotional revenues (2) 9,227 513 9,740 35,319 13,437 48,756 Other revenues 1,527 194 1,721 25,857 6,459 32,316 Total revenues $ 34,409 $ 1,069 $ 35,478 $ 470,007 $ 118,061 $ 588,068 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 U.S. International U.S. International Operating Operating Operating Operating Major Goods/Services Segment (1) Segment Consolidated Segment (1) Segment Consolidated Admissions revenues $ 351,122 $ 103,307 $ 454,429 $ 1,066,884 $ 304,157 $ 1,371,041 Concession revenues 230,415 59,062 289,477 704,727 181,356 886,083 Screen advertising, screen rental and promotional revenues 21,114 16,448 37,562 63,996 49,587 113,583 Other revenues 30,394 9,955 40,349 95,180 28,409 123,589 Total revenues $ 633,045 $ 188,772 $ 821,817 $ 1,930,787 $ 563,509 $ 2,494,296 Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 U.S. International U.S. International Operating Operating Operating Operating Timing of Recognition Segment (1) Segment Consolidated Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 24,945 $ 352 $ 25,297 $ 426,476 $ 101,681 $ 528,157 Goods and services transferred over time (2) 9,464 717 10,181 43,531 16,380 59,911 Total $ 34,409 $ 1,069 $ 35,478 $ 470,007 $ 118,061 $ 588,068 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 U.S. International U.S. International Operating Operating Operating Operating Timing of Recognition Segment (1) Segment Consolidated Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 610,063 $ 169,171 $ 779,234 $ 1,860,828 $ 504,702 $ 2,365,530 Goods and services transferred over time 22,982 19,601 42,583 69,959 58,807 128,766 Total $ 633,045 $ 188,772 $ 821,817 $ 1,930,787 $ 563,509 $ 2,494,296 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. (2) Amount includes amortization of NCM screen advertising advances. See Deferred Revenues |
Changes in Advances and Deferred Revenues | The following table presents changes in the Company’s advances and deferred revenues for the nine months ended September 30, 2020. NCM screen advertising advances (1) Other Deferred Revenues (2) Total Balance at January 1, 2020 $ 348,354 $ 138,426 $ 486,780 Amounts recognized as accounts receivable — 2,788 2,788 Cash received from customers in advance — 45,933 45,933 Common units received from NCM (see Note 9) 3,620 — 3,620 Interest accrued related to significant financing component 17,726 — 17,726 Revenue recognized during period (23,463 ) (44,714 ) (68,177 ) Foreign currency translation adjustments — (2,022 ) (2,022 ) Balance at September 30, 2020 $ 346,237 $ 140,411 $ 486,648 (1) See Note 8 for the maturity of balance as of September 30, 2020. (2) Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising, screen rental and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet. |
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized | The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of September 30, 2020 and when the Company expects to recognize this revenue. Twelve Months Ended September 30, Remaining Performance Obligations 2021 2022 2023 2024 2025 Thereafter Total Other Deferred revenue $ 125,429 $ 14,936 $ 46 $ — $ — $ — $ 140,411 |
Long Term Debt Activity (Tables
Long Term Debt Activity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Company's Interest Rate Swap Agreements Designated as Cash Flow Hedges | Below is a summary of the Company’s interest rate swap agreements designated as cash flow hedges as of September 30, 2020: Estimated Fair Value at Notional September 30, Amount Effective Date Pay Rate Receive Rate Expiration Date 2020 (1) $ 137,500 December 31, 2018 2.12% 1-Month LIBOR December 31, 2024 $ 10,719 $ 175,000 December 31, 2018 2.12% 1-Month LIBOR December 31, 2024 13,647 $ 137,500 December 31, 2018 2.19% 1-Month LIBOR December 31, 2024 11,192 $ 150,000 March 31, 2020 0.57% 1-Month LIBOR March 31, 2022 926 Total $ 36,484 (1) Approximately $9,763 of the total is included in accounts payable and accrued expenses and $26,721 is included in other long-term liabilities on the condensed consolidated balance sheet as of September 30, 2020. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Summary of Changes in Stockholder's Equity | Below is a summary of changes in stockholders’ equity attributable to Cinemark USA, Inc., noncontrolling interests and total equity for the three and nine months ended September 30, 2020 and 2019: Class A Common Stock Class B Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings Accumulated Other Comprehensive Loss Total Cinemark USA, Inc. Stockholder's Equity Noncontrolling Interests Total Equity Balance at January 1, 2020 $ — $ 49,543 $ (24,233 ) $ 1,291,618 $ 484,883 $ (340,112 ) $ 1,461,699 $ 12,508 $ 1,474,207 Share based awards compensation expense — — — 3,882 — — 3,882 — 3,882 Dividends paid to parent — — — — (42,000 ) — (42,000 ) — (42,000 ) Dividends paid to noncontrolling interests — — — — — — — (392 ) (392 ) Net income (loss) — — — — (59,270 ) — (59,270 ) 169 (59,101 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — (24,171 ) (24,171 ) (24,171 ) Foreign currency translation adjustments — — — — — (57,625 ) (57,625 ) — (57,625 ) Balance at March 31, 2020 $ — $ 49,543 $ (24,233 ) $ 1,295,500 $ 383,613 $ (421,908 ) $ 1,282,515 $ 12,285 $ 1,294,800 Share based awards compensation expense — — — 4,092 — — 4,092 — 4,092 Net loss — — — — (169,951 ) — (169,951 ) (427 ) (170,378 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — 849 849 — 849 Amortization of accumulated losses for amended swap agreements — — — — — 2,669 2,669 — 2,669 Foreign currency translation adjustments — — — — — (3,702 ) (3,702 ) — (3,702 ) Balance at June 30, 2020 $ — $ 49,543 $ (24,233 ) $ 1,299,593 $ 213,662 $ (422,092 ) $ 1,116,473 $ 11,859 $ 1,128,332 Share based awards compensation expense — — — 4,198 — — 4,198 — 4,198 Net loss — — — — (144,431 ) — (144,431 ) (444 ) (144,875 ) Unrealized gain to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — 6,528 6,528 — 6,528 Amortization of accumulated losses for amended swap agreements — — — — — 2,669 2,669 — 2,669 Foreign currency translation adjustments — — — — — (1,503 ) (1,503 ) — (1,503 ) Balance at September 30, 2020 $ — $ 49,543 $ (24,233 ) $ 1,303,791 $ 69,231 $ (414,398 ) $ 983,934 $ 11,415 $ 995,349 Class A Common Stock Class B Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings Accumulated Other Comprehensive Loss Total Cinemark USA, Inc. Stockholder's Equity Noncontrolling Interests Total Equity Balance at January 1, 2019 $ — $ 49,543 $ (24,233 ) $ 1,277,921 $ 480,580 $ (319,007 ) $ 1,464,804 $ 12,379 $ 1,477,183 Cumulative effect of change in accounting principle, net of taxes of $6,054 — — — — 16,985 — 16,985 — 16,985 Share based awards compensation expense — — — 2,743 — — 2,743 — 2,743 Dividends paid to parent — — — — (39,575 ) — (39,575 ) — (39,575 ) Dividends paid to noncontrolling interests — — — — — — — (1,000 ) (1,000 ) Net income — — — — 33,177 — 33,177 465 33,642 Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — (3,311 ) (3,311 ) — (3,311 ) Other comprehensive loss in equity method investees — — — — — (71 ) (71 ) — (71 ) Foreign currency translation adjustments — — — — — 755 755 — 755 Balance at March 31, 2019 $ — $ 49,543 $ (24,233 ) $ 1,280,664 $ 491,167 $ (321,634 ) $ 1,475,507 $ 11,844 $ 1,487,351 Share based awards compensation expense — — — 3,447 — — 3,447 — 3,447 Dividends paid to parent — — — — (39,600 ) — (39,600 ) — (39,600 ) Dividends paid to noncontrolling interests — — — — — — — (294 ) (294 ) Net income — — — — 101,544 — 101,544 890 102,434 Other comprehensive loss in equity method investees — — — — (22 ) (22 ) — (22 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — (5,902 ) (5,902 ) — (5,902 ) Foreign currency translation adjustments — — — — — 4,925 4,925 — 4,925 Balance at June 30, 2019 $ — $ 49,543 $ (24,233 ) $ 1,284,111 $ 553,111 $ (322,633 ) $ 1,539,899 $ 12,440 $ 1,552,339 Share based awards compensation expense — — — 3,609 — — 3,609 — 3,609 Dividends paid to parent — — — — (39,650 ) — (39,650 ) — (39,650 ) Dividends paid to noncontrolling interests — — — — — — — (294 ) (294 ) Net income — — — — 31,796 — 31,796 602 32,398 Other comprehensive loss in equity method investees — — — — — (49 ) (49 ) — (49 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — — (1,291 ) (1,291 ) — (1,291 ) Foreign currency translation adjustments — — — — — (25,408 ) (25,408 ) (25,408 ) Balance at September 30, 2019 $ — $ 49,543 $ (24,233 ) $ 1,287,720 $ 545,257 $ (349,381 ) $ 1,508,906 $ 12,748 $ 1,521,654 |
National CineMedia (Tables)
National CineMedia (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized | The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of September 30, 2020 and when the Company expects to recognize this revenue. Twelve Months Ended September 30, Remaining Performance Obligations 2021 2022 2023 2024 2025 Thereafter Total Other Deferred revenue $ 125,429 $ 14,936 $ 46 $ — $ — $ — $ 140,411 |
NCM | |
Summary of Activity With Equity Investee Included in the Company's Condensed Consolidated Financial Statements | Below is a summary of activity with NCM included in the Company’s condensed consolidated financial statements: Investment in NCM NCM Screen Advertising Advances Distributions from NCM Equity in Loss Other Revenue Interest Expense - NCM Cash Received Balance as of January 1, 2020 $ 265,792 $ (348,354 ) Receipt of common units due to annual common unit adjustment ("CUA") 3,620 (3,620 ) $ — $ — $ — $ — $ — Screen rental revenues earned under ESA (1) — — — — (4,209 ) — 4,209 Interest accrued related to significant financing component — (17,726 ) — — — 17,726 — Receipt of excess cash distributions (14,168 ) — (6,975 ) — — — 21,143 Equity in loss (4,810 ) — — 4,810 — — — Amortization of screen advertising advances — 23,463 — — (23,463 ) — — Balance as of and for the nine months ended September 30, 2020 $ 250,434 $ (346,237 ) $ (6,975 ) $ 4,810 $ (27,672 ) $ 17,726 $ 25,352 (1) Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $2,243. |
Summary Financial Information | Below is summary financial information for NCM for the periods indicated: Three Three Months ended Nine Months Ended Nine Months Ended September 24, 2020 September 26, 2019 September 24, 2020 September 26, 2019 Gross revenues $ 6,000 $ 110,513 $ 74,700 $ 297,613 Operating income (loss) $ (20,073 ) $ 39,349 $ (38,973 ) $ 87,949 Net income (loss) $ (34,950 ) $ 25,307 $ (81,350 ) $ 45,907 As of As of September 24, 2020 December 26, 2019 Current assets $ 170,749 $ 185,400 Noncurrent assets $ 693,018 $ 706,600 Current liabilities $ 47,153 $ 125,500 Noncurrent liabilities $ 1,073,742 $ 947,800 Members deficit $ (257,128 ) $ (181,300 ) |
NCM Screen Advertising Advances | |
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized | The recognition of revenue related to the NCM screen advertising advances will be recorded on a straight-line basis through February 2041. Twelve Months Ended September 30, Remaining Maturity 2021 2022 2023 2024 2025 Thereafter Total NCM screen advertising advances $ 8,131 $ 8,693 $ 9,295 $ 9,940 $ 10,630 $ 299,548 $ 346,237 |
Other Investments (Tables)
Other Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Activity for Each of Company's Other Investments | Below is a summary of activity for each of the Company’s other investments for the nine months ended September 30, 2020: DCIP AC JV, LLC DCDC FE Concepts Other Total Balance at January 1, 2020 $ 124,696 $ 5,022 $ 3,169 $ 19,519 $ 2,879 $ 155,285 Cash distributions received (10,383 ) — (878 ) — — (11,261 ) Equity loss (20,083 ) (618 ) (1,197 ) (1,003 ) — (22,901 ) Other 50 — — — (2,584 ) (2,534 ) Balance at September 30, 2020 $ 94,280 $ 4,404 $ 1,094 $ 18,516 $ 295 $ 118,589 |
Digital Cinema Implementation Partners | |
Summary Financial Information | Below is summary financial information for DCIP for the periods indicated: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Gross revenues $ 1,084 $ 40,200 $ 20,809 $ 125,869 Operating income (loss) $ (29,878 ) $ 22,617 $ (72,422 ) $ 73,396 Net income (loss) $ (30,554 ) $ 22,362 $ (79,660 ) $ 69,323 As of September 30, 2020 December 31, 2019 Current assets $ 28,299 $ 51,382 Noncurrent assets $ 461,276 $ 581,547 Current liabilities $ 58,375 $ 70,515 Noncurrent liabilities $ 710 $ 190 Members' equity $ 430,490 $ 562,224 |
Transactions with DCIP | The Company had the following transactions with DCIP, reflected in utilities and other costs on the condensed consolidated statements of income, during the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Equipment lease payments (1) $ 346 $ 1,105 $ 1,384 $ 3,357 Warranty reimbursements from DCIP $ — $ (2,953 ) $ (3,123 ) $ (8,842 ) Management service fees $ — $ 128 $ 84 $ 438 (1) The Company negotiated an abatement of lease payments during the temporary closure of its theatres as a result of the COVID-19 pandemic. The Company did not remeasure its lease liabilities and lease right-of-use assets as a result of these negotiations in accordance with FASB guidance. See further discussion at Note 4. |
Share Based Awards (Tables)
Share Based Awards (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Restricted Stock Activity | Below is a summary of restricted stock activity for the nine months ended September 30, 2020: Shares of Weighted Average Restricted Grant Date Stock Fair Value Outstanding at January 1, 2020 783,823 $ 37.53 Granted 1,045,885 $ 18.35 Vested (326,281 ) $ 35.63 Forfeited (56,133 ) $ 33.63 Outstanding at September 30, 2020 1,447,294 $ 24.25 Unvested restricted stock at September 30, 2020 1,447,294 $ 24.25 |
Summary of Restricted Stock Unit Award Activity | Below is a table summarizing the potential number of shares that could vest under restricted stock unit awards granted during the nine months ended September 30, 2020 Number of Shares Value at Vesting Grant at IRR of at least 6% 190,707 $ 6,125 at IRR of at least 8% 286,060 $ 9,188 at IRR of at least 14% 436,681 $ 14,026 |
Restricted Stock | |
Summary of Restricted Stock Award Activity | Nine Months Ended September 30, 2020 2019 Compensation expense recognized by the Company during the period $ 7,548 $ 6,769 Additional compensation expense recognized by Cinemark Holdings, Inc. during the period $ 687 $ 687 Fair value of restricted shares held by Company employees that vested during the period $ 8,567 $ 6,650 Fair value of restricted shares held by Cinemark Holdings, Inc.’s directors that vested during the period $ 377 $ 980 Income tax benefit recognized upon vesting of restricted stock awards held by Company employees $ 2,533 $ 1,228 Additional income tax benefit recognized upon vesting of restricted stock awards held by Cinemark Holdings, Inc.'s directors $ 145 $ 245 |
Restricted Stock Units (RSUs) | |
Summary of Restricted Stock Unit Award Activity | Nine Months Ended September 30, 2020 2019 Number of restricted stock unit awards that vested during the period 120,293 88,074 Fair value of restricted stock unit awards that vested during the period $ 3,669 $ 3,550 Accumulated dividends paid upon vesting of restricted stock unit awards $ 576 $ 375 Compensation expense recognized during the period $ 4,624 $ 3,030 Income tax benefit recognized upon vesting of restricted stock unit awards $ 215 $ 175 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | A summary of the Company’s goodwill is as follows: U.S. Operating Segment International Operating Segment Total Balance at January 1, 2020 (1) $ 1,182,853 $ 100,518 $ 1,283,371 Impairment — (16,128 ) (16,128 ) Foreign currency translation adjustments — (17,816 ) (17,816 ) Balance at September 30, 2020 $ 1,182,853 $ 66,574 $ 1,249,427 (1) Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. (2) See Note 12 for discussion of impairment evaluations performed during the nine months ended September 30, 2020. |
Intangible Assets | A summary of the Company’s intangible assets is as follows: Balance at January 1, 2020 Amortization Other (1) Balance at September 30, 2020 Intangible assets with finite lives: Gross carrying amount $ 85,007 $ — $ (2,018 ) $ 82,989 Accumulated amortization (63,924 ) (3,569 ) — (67,493 ) Total net intangible assets with finite lives $ 21,083 $ (3,569 ) $ (2,018 ) $ 15,496 Intangible assets with indefinite lives: Tradename and other 300,686 — (613 ) 300,073 Total intangible assets — net $ 321,769 $ (3,569 ) $ (2,631 ) $ 315,569 (1) Amount primarily represents foreign currency translation adjustments. |
Estimated Aggregate Future Amortization Expense for Intangible Assets | The estimated aggregate future amortization expense for intangible assets is as follows: For the three months ended December 31, 2020 $ 1,373 For the twelve months ended December 31, 2021 2,765 For the twelve months ended December 31, 2022 2,612 For the twelve months ended December 31, 2023 2,514 For the twelve months ended December 31, 2024 2,514 Thereafter 3,718 Total $ 15,496 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | |
Summary of Evaluations Performed by Asset Classification | The following table is a summary of the evaluations performed by asset classification. Impairment Asset Valuation Valuation Test Category Approach Multiple First Quarter Quantitative Goodwill Market (1) 8 times Tradename Intangible Assets Income N/A Other Long-Lived Assets Market 6 times Second Quarter Qualitative Goodwill N/A N/A Tradename Intangible Assets N/A N/A Other Long-Lived Assets N/A N/A Third Quarter Quantitative Goodwill Market (1) 2.9 to 7 times Tradename Intangible Assets Income N/A Other Long-Lived Assets Market 3.2 to 6 times (1) The Company also used the income approach to test goodwill for impairment for the respective period. |
Long-Lived Asset Impairment Charges | The following table is a summary of the impairment recorded as a result of the evaluations discussed above during the three and nine months ended September 30, 2020: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. Segment Theatre properties $ 2,075 $ 24,502 $ 5,718 $ 26,754 Theatre operating lease right-of-use assets 1,123 2,157 7,075 10,204 Cost method investment 2,500 — 2,500 — U.S. total 5,698 26,659 15,293 36,958 International segment Theatre properties 938 645 5,422 6,796 Theatre operating lease right-of-use assets 1,654 — 4,194 1,628 Goodwill 16,128 — 16,128 — Intangible assets 177 — 177 — International total 18,897 645 25,921 8,424 Total Impairment $ 24,595 $ 27,304 $ 41,214 $ 45,382 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Liabilities Measured at Fair Value on a Recurring Basis | Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of September 30, 2020 and December 31, 2019: Carrying Fair Value Hierarchy Description As of, Value Level 1 Level 2 Level 3 Interest rate swap liabilities (1) September 30, 2020 $ 36,484 $ — $ 36,484 $ — Interest rate swap liabilities (1) December 31, 2019 $ 15,995 $ — $ 15,995 $ — (1) See further discussion of interest rate swaps at Note 6. |
Foreign Currency Translation (T
Foreign Currency Translation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Impact of Translating Financial Statements of Company's International Subsidiaries | Below is a summary of the impact of translating the September 30, 2020 and 2019 financial statements of the Company’s international subsidiaries: Other Comprehensive Income (Loss) for Exchange Rate as of Nine Months Ended Country September 30, 2020 December 31, 2019 September 30, 2020 September 30, 2019 Brazil 5.63 4.02 $ (51,453 ) $ (14,492 ) Chile 785.93 736.86 (5,046 ) (4,017 ) Colombia 3,878.95 3,277.14 (2,584 ) (1,507 ) Peru 3.62 3.37 (3,187 ) (203 ) All other (560 ) 491 $ (62,830 ) $ (19,728 ) (1) Beginning July 1, 2018, Argentina was deemed highly inflationary. A gain of $1,053 and a loss of $3,356 for the nine months ended September 30, 2020 and 2019, respectively, is reflected as foreign currency exchange gain (loss) on the Company’s condensed consolidated statement of income as a result of translating Argentina financial results to U.S. dollars. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information to Condensed Consolidated Statements of Cash Flows | The following is provided as supplemental information to the condensed consolidated statements of cash flows: Nine Months Ended September 30, 2020 2019 Cash paid for interest $ 53,364 $ 56,326 Cash paid (refunds received) for income taxes, net $ (108,776 ) $ 69,498 Noncash investing and financing activities: Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment (1) $ (7,933 ) $ (13,642 ) Interest expense - NCM (see Note 8) $ (17,726 ) $ (14,180 ) Investment in NCM – receipt of common units (see Note 8) $ 3,620 $ 1,552 (1) Additions to theatre properties and equipment included in accounts payable as of September 30, 2020 and December 31, 2019 were $7,058 and $14,991, respectively. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Reportable Operating Segment | Below is a breakdown of selected financial information by reportable operating segment: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Revenues U.S. $ 34,639 $ 636,628 $ 472,096 $ 1,941,545 International 1,069 188,772 118,061 563,509 Eliminations (230 ) (3,583 ) (2,089 ) (10,758 ) Total revenues $ 35,478 $ 821,817 $ 588,068 $ 2,494,296 Adjusted EBITDA U.S. $ (105,279 ) $ 132,705 $ (144,918 ) $ 454,665 International (22,232 ) 37,411 (33,459 ) 113,346 Total Adjusted EBITDA $ (127,511 ) $ 170,116 $ (178,377 ) $ 568,011 Capital expenditures U.S. $ 17,903 $ 50,679 $ 54,604 $ 148,609 International 2,756 20,664 13,014 37,903 Total capital expenditures $ 20,659 $ 71,343 $ 67,618 $ 186,512 |
Reconciliation of Net Income (Loss) to Adjusted EBITDA | The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net income (loss) $ (144,875 ) $ 32,398 $ (374,354 ) $ 168,474 Add (deduct): Income taxes (119,273 ) 14,193 (220,287 ) 64,615 Interest expense (1) 32,235 24,967 87,942 75,037 Other (income) expense, net (2) 22,907 (9,964 ) 47,412 (25,059 ) Cash distributions from DCIP (3) — 2,694 10,383 7,912 Cash distributions from other equity investees (4) 2,146 5,804 15,047 20,251 Depreciation and amortization 62,543 67,760 191,380 196,795 Impairment of long-lived assets 24,595 27,304 41,214 45,382 Restructuring costs 524 — 20,062 — (Gain) loss on disposal of assets and other (13,327 ) 2,453 (10,997 ) 8,057 Non-cash rent expense 816 (1,102 ) 1,649 (3,252 ) Share based awards compensation expense 4,198 3,609 12,172 9,799 Adjusted EBITDA $ (127,511 ) $ 170,116 $ (178,377 ) $ 568,011 (1) Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. (2) Includes interest income, foreign currency exchange gain (loss), equity in income of affiliates and interest expense - NCM and excludes distributions from NCM. (3) See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 9. These distributions are reported entirely within the U.S. operating segment. (4) Includes cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances (see Notes 8 and 9). These distributions are reported entirely within the U.S. operating segment. |
Selected Financial Information by Geographic Area | Below is a breakdown of selected financial information by geographic area: Three Months Ended Nine Months Ended September 30, September 30, Revenues 2020 2019 2020 2019 U.S. $ 34,639 $ 636,628 $ 472,096 $ 1,941,545 Brazil 513 79,776 53,829 240,263 Other international countries 556 108,996 64,232 323,246 Eliminations (230 ) (3,583 ) (2,089 ) (10,758 ) Total $ 35,478 $ 821,817 $ 588,068 $ 2,494,296 As of As of Theatre Properties and Equipment-net September 30, 2020 December 31, 2019 U.S. $ 1,324,924 $ 1,436,275 Brazil 71,338 118,367 Other international countries 149,561 180,605 Total $ 1,545,823 $ 1,735,247 |
Summary Financial Information_2
Summary Financial Information of Subsidiary Guarantors (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Statement Of Financial Position [Abstract] | |
Summary of Balance Sheet Information | As of September 30, 2020 Parent Guarantors Summary Balance Sheet Information Current assets $ 341,689 $ 186,027 Noncurrent assets $ 4,410,997 $ 1,396,608 Current liabilities $ 536,760 $ 138,020 Long-term liabilities $ 3,231,989 $ 474,683 Stockholder's equity $ 983,937 $ 969,933 As of December 31, 2019 Parent Guarantors Summary Balance Sheet Information Current assets $ 244,063 $ 444,481 Noncurrent assets $ 4,820,174 $ 1,403,687 Current liabilities $ 573,273 $ 147,366 Long-term liabilities $ 3,029,265 $ 500,566 Stockholder's equity $ 1,461,699 $ 1,200,236 |
Summary Income Statement Information | Nine Months Ended September 30, 2020 Parent Guarantors Summary Income Statement Information Revenues $ 224,915 $ 266,091 Operating loss $ (193,236 ) $ (161,599 ) Net loss $ (373,653 ) $ (157,502 ) |
The Company and Basis of Pres_2
The Company and Basis of Presentation - Additional Information (Detail) | Sep. 30, 2020 |
Minimum | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Equity method investment, ownership percentage | 20.00% |
Maximum | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Cost method investment, ownership Percentage | 20.00% |
Impact of COVID-19 - Additional
Impact of COVID-19 - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019 | Sep. 30, 2020Domestic | Sep. 30, 2020International | |
Unusual Or Infrequent Item [Line Items] | |||||||
Restructuring costs | $ 524 | $ 20,062 | |||||
Income taxes | (119,273) | $ 14,193 | (220,287) | $ 64,615 | |||
Net (loss)/income | (144,431) | 31,796 | (373,652) | $ 166,517 | |||
Impact of COVID-19 | |||||||
Unusual Or Infrequent Item [Line Items] | |||||||
Number of theatres reopened | 252 | 15 | |||||
Restructuring costs | 524 | 20,062 | |||||
Number of theatres closed | 14 | 7 | |||||
Unpaid and accrued restructuring costs | 9,630 | 9,630 | |||||
Effective corporate income tax rate, percent | 35.00% | ||||||
Impact of COVID-19 | Coronavirus Aid Relief And Economic Security Act | |||||||
Unusual Or Infrequent Item [Line Items] | |||||||
Income taxes | (119,273) | 14,193 | |||||
Net (loss)/income | $ (264,148) | $ 46,591 | |||||
Effective income tax rate, percent | 45.20% | 30.50% | |||||
Expected income tax refund receivable | $ 84,105 | 84,105 | |||||
Income tax cash refund | $ 115,769 | 115,769 | |||||
Impact of COVID-19 | U.S. | |||||||
Unusual Or Infrequent Item [Line Items] | |||||||
Income taxes | $ (220,287) |
Impact of COVID-19 - Schedule o
Impact of COVID-19 - Schedule of Restructuring Plan and Obligations Remained Outstanding (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | |
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | $ 524 | $ 20,062 | ||
2020 Restructuring Plan | U.S. Operating Segment | ||||
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | 154 | $ 16,544 | ||
Amounts paid | $ (572) | (6,957) | ||
Noncash write-offs | 88 | 47 | ||
Reserve balance at June 30, 2020 | 9,304 | 16,060 | 16,060 | 9,304 |
2020 Restructuring Plan | U.S. Operating Segment | Employee-related Costs | ||||
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | 8,955 | |||
Amounts paid | (90) | (6,521) | ||
Reserve balance at June 30, 2020 | 2,344 | 8,865 | 8,865 | 2,344 |
2020 Restructuring Plan | U.S. Operating Segment | Facility Closure Costs | ||||
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | 154 | 7,589 | ||
Amounts paid | (482) | (436) | ||
Noncash write-offs | 88 | 47 | ||
Reserve balance at June 30, 2020 | 6,960 | 7,195 | 7,195 | 6,960 |
2020 Restructuring Plan | International Operating Segment | ||||
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | 370 | 2,994 | ||
Amounts paid | (42) | (493) | ||
Noncash write-offs | (2,374) | (129) | ||
Reserve balance at June 30, 2020 | 326 | 578 | 578 | 326 |
2020 Restructuring Plan | International Operating Segment | Employee-related Costs | ||||
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | 17 | 163 | ||
Amounts paid | (180) | |||
Reserve balance at June 30, 2020 | 163 | 163 | ||
2020 Restructuring Plan | International Operating Segment | Facility Closure Costs | ||||
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | 353 | 2,831 | ||
Amounts paid | (42) | (313) | ||
Noncash write-offs | (2,374) | (129) | ||
Reserve balance at June 30, 2020 | 326 | 415 | 415 | 326 |
2020 Restructuring Plan | Consolidated | ||||
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | 524 | 19,538 | ||
Amounts paid | (614) | (7,450) | ||
Noncash write-offs | (2,286) | (82) | ||
Reserve balance at June 30, 2020 | 9,630 | 16,638 | 16,638 | 9,630 |
2020 Restructuring Plan | Consolidated | Employee-related Costs | ||||
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | 17 | 9,118 | ||
Amounts paid | (90) | (6,701) | ||
Reserve balance at June 30, 2020 | 2,344 | 9,028 | 9,028 | 2,344 |
2020 Restructuring Plan | Consolidated | Facility Closure Costs | ||||
Unusual Or Infrequent Item [Line Items] | ||||
Restructuring charges during the three months ended June 30, 2020 | 507 | 10,420 | ||
Amounts paid | (524) | (749) | ||
Noncash write-offs | (2,286) | (82) | ||
Reserve balance at June 30, 2020 | $ 7,286 | $ 7,610 | $ 7,610 | $ 7,286 |
Lease Accounting - Additional I
Lease Accounting - Additional Information (Detail) | Sep. 30, 2020USD ($) |
Lease [Line Items] | |
Payments deferred classified as accounts payable and accrued expenses | $ 62,559,000,000 |
Theatres | |
Lease [Line Items] | |
Noncancelable lease payments payable under operating lease, lease not yet commenced | 220,417,000 |
Equipment | |
Lease [Line Items] | |
Noncancelable lease payments payable under operating lease, lease not yet commenced | $ 0 |
Schedule of Aggregate Lease Cos
Schedule of Aggregate Lease Costs by Lease Classification (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating lease costs | |||||
Total operating lease costs | $ 66,793 | $ 89,718 | $ 213,583 | $ 267,956 | |
Finance lease costs | |||||
Total finance lease costs | 5,390 | 5,625 | 16,385 | 17,109 | |
Depreciation and Amortization | |||||
Finance lease costs | |||||
Amortization of leased assets | 3,665 | 3,703 | 11,052 | 11,182 | |
Interest Expense | |||||
Finance lease costs | |||||
Interest on lease liabilities | 1,725 | 1,922 | 5,333 | 5,927 | |
Equipment | Utilities and Other | |||||
Operating lease costs | |||||
Total operating lease costs | [1] | 823 | 1,569 | 2,495 | 5,173 |
Real Estate | Facility Lease Expense | |||||
Operating lease costs | |||||
Total operating lease costs | [2],[3] | $ 65,970 | $ 88,149 | $ 211,088 | $ 262,783 |
[1] | Includes approximately $(267) and $452 of short-term lease payments for the three months ended September 30, 2020 and 2019, respectively. Includes approximately $(839) and $1,808 of short-term lease payments for the nine months ended September 30, 2020 and 2019, respectively. The amounts for the three and nine months ended September 30, 2020 were impacted by i) a decrease in short term lease payments while theatres were closed and ii) rent abatements on leases that were not recalculated in accordance with the FASB guidance discussed above, which resulted in variable rent credits in the amount of the rent abatements. | ||||
[2] | Approximately $335 and $400 of lease payments are included in general and administrative expenses primarily related to office leases for the three months ended September 30, 2020 and 2019, respectively. Approximately $1,122 and $1,184 of lease payments are included in general and administrative expenses primarily related to office leases for the nine months ended September 30, 2020 and 2019, respectively. | ||||
[3] | Includes approximately $(191) and $18,591 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the three months ended September 30, 2020 and 2019, respectively. Includes approximately $9,146 and $54,209 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the nine months ended September 30, 2020 and 2019. The amounts for the three and nine months ended September 30, 2020 were impacted by rent abatements on leases that were not recalculated in accordance with the FASB guidance discussed above, which resulted in variable rent credits in the amount of the rent abatements. |
Schedule of Aggregate Lease C_2
Schedule of Aggregate Lease Costs by Lease Classification (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Lease Cost [Line Items] | |||||
Lease payments | [1] | $ 205,276 | $ 211,940 | ||
Equipment | Utilities and Other | |||||
Lease Cost [Line Items] | |||||
Short term lease payments | $ 267 | $ 452 | 839 | 1,808 | |
Real Estate | Facility Lease Expense | |||||
Lease Cost [Line Items] | |||||
Variable lease payments | 191 | 18,591 | 9,146 | 54,209 | |
Lease payments | $ 335 | $ 400 | $ 1,122 | $ 1,184 | |
[1] | As discussed above at Lease Deferrals and Abatements |
Schedule of Minimum Cash Lease
Schedule of Minimum Cash Lease Payments (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Contractual cash payments included in the measurement of lease liabilities | |||
Cash outflows for operating leases | [1] | $ 205,276 | $ 211,940 |
Cash outflows for finance leases - operating activities | [1] | 5,304 | 5,756 |
Cash outflows for finance leases - financing activities | [1] | 11,497 | 10,830 |
Equipment | |||
Non-cash amount of leased assets obtained in exchange for: | |||
Operating lease liabilities - real estate | 32 | 668 | |
Real Estate | |||
Non-cash amount of leased assets obtained in exchange for: | |||
Operating lease liabilities - real estate | $ 84,209 | $ 53,526 | |
[1] | As discussed above at Lease Deferrals and Abatements |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Revenue From Contract With Customer [Abstract] | |||
Receivables related to contracts with customers | $ 6,162,000 | $ 31,620,000 | |
Assets related to costs to obtain or fulfill contract with customers | $ 0 | $ 0 |
Summary of Revenues Disaggregat
Summary of Revenues Disaggregated Based on Major Type of Good or Service and by Reportable Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | $ 35,478 | $ 821,817 | $ 588,068 | $ 2,494,296 | |
U.S. Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 34,409 | 633,045 | 470,007 | 1,930,787 |
International Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,069 | 188,772 | 118,061 | 563,509 | |
Admissions Revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 14,901 | 454,429 | 307,400 | 1,371,041 | |
Admissions Revenues | U.S. Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 14,794 | 351,122 | 247,157 | 1,066,884 |
Admissions Revenues | International Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 107 | 103,307 | 60,243 | 304,157 | |
Concession Revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 9,116 | 289,477 | 199,596 | 886,083 | |
Concession Revenues | U.S. Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 8,861 | 230,415 | 161,674 | 704,727 |
Concession Revenues | International Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 255 | 59,062 | 37,922 | 181,356 | |
Other Revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,721 | 40,349 | 32,316 | 123,589 | |
Other Revenues | U.S. Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1] | 1,527 | 30,394 | 25,857 | 95,180 |
Other Revenues | International Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 194 | 9,955 | 6,459 | 28,409 | |
Screen Advertising Screen Rental And Promotional Revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | 9,740 | 37,562 | 48,756 | 113,583 |
Screen Advertising Screen Rental And Promotional Revenues | U.S. Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [1],[2] | 9,227 | 21,114 | 35,319 | 63,996 |
Screen Advertising Screen Rental And Promotional Revenues | International Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | [2] | $ 513 | $ 16,448 | $ 13,437 | $ 49,587 |
[1] | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. | ||||
[2] | Amount includes amortization of NCM screen advertising advances. See Deferred Revenues |
Summary of Revenues Disaggreg_2
Summary of Revenues Disaggregated Based on Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | $ 35,478 | $ 821,817 | $ 588,068 | $ 2,494,296 | |||
U.S. Operating Segment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | [1] | 34,409 | 633,045 | 470,007 | 1,930,787 | ||
International Operating Segment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | 1,069 | 188,772 | 118,061 | 563,509 | |||
Goods and Services Transferred at a Point in Time | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | 25,297 | 779,234 | 528,157 | 2,365,530 | |||
Goods and Services Transferred at a Point in Time | U.S. Operating Segment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | [1] | 24,945 | 610,063 | 426,476 | 1,860,828 | ||
Goods and Services Transferred at a Point in Time | International Operating Segment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | 352 | 169,171 | 101,681 | 504,702 | |||
Goods and Services Transferred Over Time | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | 10,181 | [2] | 42,583 | 59,911 | [2] | 128,766 | |
Goods and Services Transferred Over Time | U.S. Operating Segment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | [1] | 9,464 | [2] | 22,982 | 43,531 | [2] | 69,959 |
Goods and Services Transferred Over Time | International Operating Segment | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | $ 717 | [2] | $ 19,601 | $ 16,380 | [2] | $ 58,807 | |
[1] | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. | ||||||
[2] | Amount includes amortization of NCM screen advertising advances. See Deferred Revenues |
Changes in Advances and Deferre
Changes in Advances and Deferred Revenues (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($) | ||
Change in Contract with Customer Liability [Line Items] | ||
Balance at January 1, 2020 | $ 486,780 | |
Amounts recognized as accounts receivable | 2,788 | |
Cash received from customers in advance | 45,933 | |
Common units received from NCM (see Note 9) | 3,620 | |
Interest accrued related to significant financing component | 17,726 | |
Revenue recognized during period | (68,177) | |
Foreign currency translation adjustments | (2,022) | |
Balance at September 30, 2020 | 486,648 | |
NCM Screen Advertising Advances | ||
Change in Contract with Customer Liability [Line Items] | ||
Balance at January 1, 2020 | 348,354 | [1] |
Common units received from NCM (see Note 9) | (3,620) | |
Interest accrued related to significant financing component | 17,726 | [1] |
Revenue recognized during period | (23,463) | [1] |
Balance at September 30, 2020 | 346,237 | [1] |
NCM Screen Advertising Advances | NCM | ||
Change in Contract with Customer Liability [Line Items] | ||
Common units received from NCM (see Note 9) | 3,620 | [1] |
Other Deferred Revenues | ||
Change in Contract with Customer Liability [Line Items] | ||
Balance at January 1, 2020 | 138,426 | [2] |
Amounts recognized as accounts receivable | 2,788 | [2] |
Cash received from customers in advance | 45,933 | [2] |
Revenue recognized during period | (44,714) | [2] |
Foreign currency translation adjustments | (2,022) | [2] |
Balance at September 30, 2020 | $ 140,411 | [2] |
[1] | See Note 8 for the maturity of balance as of September 30, 2020. | |
[2] | Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising, screen rental and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet. |
Aggregate Amount of Transaction
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Other Deferred Revenues | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 140,411 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | 125,429 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | 14,936 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 46 |
Aggregate Amount of Transacti_2
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized (Detail 1) $ in Thousands | Sep. 30, 2020USD ($) |
Other Deferred Revenues | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 140,411 |
Long Term Debt Activity - Addit
Long Term Debt Activity - Additional Information (Detail) $ in Thousands | Feb. 27, 2023USD ($) | Sep. 13, 2022USD ($) | Apr. 20, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($)Agreement | Aug. 21, 2020 | May 30, 2020 | Mar. 25, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||
Interest rate | 8.75% | |||||||||
Loss accumulated on swaps prior to the amendments | $ 29,359 | |||||||||
Carrying value of long-term debt | $ 2,052,276 | $ 2,052,276 | $ 1,801,327 | |||||||
Fair value of long-term debt | 1,839,691 | 1,839,691 | $ 1,826,503 | |||||||
Interest Rate Swap | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amortization of accumulated losses for amended swap agreements | 2,669 | 5,338 | ||||||||
Subsidiaries [Member] | Peru | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 1.00% | |||||||||
Aggregate principal amount of add-on to Senior Notes | 2,811 | 2,811 | ||||||||
Subsidiaries [Member] | Colombia | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount of add-on to Senior Notes | $ 4,357 | $ 4,357 | ||||||||
Number of interest rate swap agreements | Agreement | 3 | |||||||||
Subsidiaries [Member] | Colombia | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 7.00% | 7.00% | ||||||||
Subsidiaries [Member] | Colombia | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 9.00% | 9.00% | ||||||||
8.750% senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount of add-on to Senior Notes | $ 250,000 | |||||||||
Interest rate | 8.75% | |||||||||
Debt instrument, maturity date | May 1, 2025 | |||||||||
5.125% senior note | Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.125% | |||||||||
Debt instrument, maturity date | Sep. 14, 2022 | |||||||||
Aggregate outstanding principal threshold amount if exceeds triggers maturity | $ 50,000 | |||||||||
4.875% senior notes | Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 4.875% | |||||||||
Debt instrument, maturity date | Feb. 28, 2023 | |||||||||
Aggregate outstanding principal threshold amount if exceeds triggers maturity | $ 50,000 | |||||||||
Term Loan Credit facility | Senior Secured Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount of add-on to Senior Notes | $ 700,000 | $ 700,000 | ||||||||
Amount outstanding under the term loan | 641,381 | 641,381 | ||||||||
Quarterly principal payments due | $ 1,649 | |||||||||
Last quarterly payment date | Dec. 31, 2024 | |||||||||
Final principal payment | $ 613,351 | $ 613,351 | ||||||||
Final principal payment due date | Mar. 29, 2025 | |||||||||
Average interest rate on outstanding borrowings | 3.40% | 3.40% | ||||||||
Revolving Credit Line | Senior Secured Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount of add-on to Senior Notes | $ 100,000 | $ 100,000 | ||||||||
Amount outstanding under the revolving credit line | 0 | 0 | $ 98,800 | |||||||
Available borrowing capacity | $ 100,000 | $ 100,000 | ||||||||
Line of credit, maturity date | Nov. 28, 2022 | |||||||||
Convertible Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 4.50% |
Long Term Debt Activity - Summa
Long Term Debt Activity - Summary of Company's Interest Rate Swap Agreements Designated as Cash Flow Hedges (Detail) - Designated as Hedging Instrument - Cash Flow Hedging $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($) | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | $ 36,484 | [1] |
Interest Rate Swap Agreement 1 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 137,500 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.12% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2024 | |
Estimated Fair Value | $ 10,719 | [1] |
Interest Rate Swap Agreement 2 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 175,000 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.12% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2024 | |
Estimated Fair Value | $ 13,647 | [1] |
Interest Rate Swap Agreement 3 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 137,500 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.19% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2024 | |
Estimated Fair Value | $ 11,192 | [1] |
Interest Rate Swap Agreement 4 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 150,000 | |
Effective Date | Mar. 31, 2020 | |
Pay Rate | 0.57% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Mar. 31, 2022 | |
Estimated Fair Value | $ 926 | [1] |
[1] | Approximately $9,763 of the total is included in accounts payable and accrued expenses and $26,721 is included in other long-term liabilities on the condensed consolidated balance sheet as of September 30, 2020. |
Long Term Debt Activity - Sum_2
Long Term Debt Activity - Summary of Company's Interest Rate Swap Agreements Designated as Cash Flow Hedges (Parenthetical) (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Accounts Payable and Accrued Expenses | |
Debt Instrument [Line Items] | |
Estimated Fair Value | $ 9,763 |
Other Long-term Liabilities | |
Debt Instrument [Line Items] | |
Estimated Fair Value | $ 26,721 |
Summary of Changes in Stockhold
Summary of Changes in Stockholders Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Shareholders Equity [Line Items] | ||||||||
Total Equity, Beginning Balance | $ 1,128,332 | $ 1,294,800 | $ 1,474,207 | $ 1,552,339 | $ 1,487,351 | $ 1,477,183 | $ 1,474,207 | $ 1,477,183 |
Cumulative effect of change in accounting principle, net of taxes | 16,985 | |||||||
Share based awards compensation expense | 4,198 | 4,092 | 3,882 | 3,609 | 3,447 | 2,743 | ||
Dividends paid to parent | (42,000) | (39,650) | (39,600) | (39,575) | ||||
Dividends paid to noncontrolling interests | (392) | (294) | (294) | (1,000) | ||||
Net income (loss) | (144,875) | (170,378) | (59,101) | 32,398 | 102,434 | 33,642 | (374,354) | 168,474 |
Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements | 6,528 | 849 | (24,171) | (1,291) | (5,902) | (3,311) | (16,794) | (10,504) |
Other comprehensive loss in equity method investments | 0 | (49) | (22) | (71) | 0 | (142) | ||
Amortization of accumulated losses for amended swap agreements | 2,669 | 2,669 | ||||||
Foreign currency translation adjustments | (1,503) | (3,702) | (57,625) | (25,408) | 4,925 | 755 | ||
Total Equity, Ending Balance | 995,349 | 1,128,332 | 1,294,800 | 1,521,654 | 1,552,339 | 1,487,351 | 995,349 | 1,521,654 |
Class B common stock | ||||||||
Shareholders Equity [Line Items] | ||||||||
Total Equity, Beginning Balance | 49,543 | 49,543 | 49,543 | 49,543 | 49,543 | 49,543 | 49,543 | 49,543 |
Total Equity, Ending Balance | 49,543 | 49,543 | 49,543 | 49,543 | 49,543 | 49,543 | 49,543 | 49,543 |
Treasury Stock | ||||||||
Shareholders Equity [Line Items] | ||||||||
Total Equity, Beginning Balance | (24,233) | (24,233) | (24,233) | (24,233) | (24,233) | (24,233) | (24,233) | (24,233) |
Total Equity, Ending Balance | (24,233) | (24,233) | (24,233) | (24,233) | (24,233) | (24,233) | (24,233) | (24,233) |
Additional Paid-In-Capital | ||||||||
Shareholders Equity [Line Items] | ||||||||
Total Equity, Beginning Balance | 1,299,593 | 1,295,500 | 1,291,618 | 1,284,111 | 1,280,664 | 1,277,921 | 1,291,618 | 1,277,921 |
Share based awards compensation expense | 4,198 | 4,092 | 3,882 | 3,609 | 3,447 | 2,743 | ||
Total Equity, Ending Balance | 1,303,791 | 1,299,593 | 1,295,500 | 1,287,720 | 1,284,111 | 1,280,664 | 1,303,791 | 1,287,720 |
Retained Earnings | ||||||||
Shareholders Equity [Line Items] | ||||||||
Total Equity, Beginning Balance | 213,662 | 383,613 | 484,883 | 553,111 | 491,167 | 480,580 | 484,883 | 480,580 |
Cumulative effect of change in accounting principle, net of taxes | 16,985 | |||||||
Dividends paid to parent | (42,000) | (39,650) | (39,600) | (39,575) | ||||
Net income (loss) | (144,431) | (169,951) | (59,270) | 31,796 | 101,544 | 33,177 | ||
Total Equity, Ending Balance | 69,231 | 213,662 | 383,613 | 545,257 | 553,111 | 491,167 | 69,231 | 545,257 |
Accumulated Other Comprehensive Loss | ||||||||
Shareholders Equity [Line Items] | ||||||||
Total Equity, Beginning Balance | (422,092) | (421,908) | (340,112) | (322,633) | (321,634) | (319,007) | (340,112) | (319,007) |
Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements | 6,528 | 849 | (24,171) | (1,291) | (5,902) | (3,311) | ||
Other comprehensive loss in equity method investments | (49) | (22) | (71) | |||||
Amortization of accumulated losses for amended swap agreements | 2,669 | 2,669 | ||||||
Foreign currency translation adjustments | (1,503) | (3,702) | (57,625) | (25,408) | 4,925 | 755 | ||
Total Equity, Ending Balance | (414,398) | (422,092) | (421,908) | (349,381) | (322,633) | (321,634) | (414,398) | (349,381) |
Total Cinemark USA, Inc.'s Stockholder's Equity | ||||||||
Shareholders Equity [Line Items] | ||||||||
Total Equity, Beginning Balance | 1,116,473 | 1,282,515 | 1,461,699 | 1,539,899 | 1,475,507 | 1,464,804 | 1,461,699 | 1,464,804 |
Cumulative effect of change in accounting principle, net of taxes | 16,985 | |||||||
Share based awards compensation expense | 4,198 | 4,092 | 3,882 | 3,609 | 3,447 | 2,743 | ||
Dividends paid to parent | (42,000) | (39,650) | (39,600) | (39,575) | ||||
Net income (loss) | (144,431) | (169,951) | (59,270) | 31,796 | 101,544 | 33,177 | ||
Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements | 6,528 | 849 | (24,171) | (1,291) | (5,902) | (3,311) | ||
Other comprehensive loss in equity method investments | (49) | (22) | (71) | |||||
Amortization of accumulated losses for amended swap agreements | 2,669 | 2,669 | ||||||
Foreign currency translation adjustments | (1,503) | (3,702) | (57,625) | (25,408) | 4,925 | 755 | ||
Total Equity, Ending Balance | 983,934 | 1,116,473 | 1,282,515 | 1,508,906 | 1,539,899 | 1,475,507 | 983,934 | 1,508,906 |
Noncontrolling Interests | ||||||||
Shareholders Equity [Line Items] | ||||||||
Total Equity, Beginning Balance | 11,859 | 12,285 | 12,508 | 12,440 | 11,844 | 12,379 | 12,508 | 12,379 |
Dividends paid to noncontrolling interests | (392) | (294) | (294) | (1,000) | ||||
Net income (loss) | (444) | (427) | 169 | 602 | 890 | 465 | ||
Total Equity, Ending Balance | $ 11,415 | $ 11,859 | $ 12,285 | $ 12,748 | $ 12,440 | $ 11,844 | $ 11,415 | $ 12,748 |
Summary of Changes in Stockho_2
Summary of Changes in Stockholders Equity (Parenthetical) (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Equity [Abstract] | |
Cumulative effect of change in accounting principle, taxes | $ 6,054 |
Summary of Activity with NCM In
Summary of Activity with NCM Included in Company's Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Schedule Of Equity Method Investments [Line Items] | |||||
Receipt of common units due to annual common unit adjustment ("CUA") | $ 3,620 | ||||
Equity in loss | $ (16,077) | $ 15,139 | (27,711) | $ 33,982 | |
NCM | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Beginning Balance | 265,792 | ||||
Beginning Balance | (348,354) | ||||
Ending Balance | 250,434 | 250,434 | |||
Ending Balance | (346,237) | (346,237) | |||
Investment In NCM | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Beginning Balance | 265,792 | ||||
Receipt of common units due to annual common unit adjustment ("CUA") | 3,620 | ||||
Receipt of excess cash distributions | (14,168) | ||||
Equity in loss | (4,810) | ||||
Ending Balance | 250,434 | 250,434 | |||
NCM Screen Advertising Advances | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Beginning Balance | (348,354) | ||||
Receipt of common units due to annual common unit adjustment ("CUA") | (3,620) | ||||
Interest accrued related to significant financing component | (17,726) | ||||
Amortization of screen advertising advances | 23,463 | ||||
Ending Balance | (346,237) | (346,237) | |||
NCM Screen Advertising Advances | NCM | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Receipt of common units due to annual common unit adjustment ("CUA") | [1] | 3,620 | |||
Distributions from NCM | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Receipt of excess cash distributions | (6,975) | ||||
Total Distributions from NCM | (6,975) | (6,975) | |||
Equity Loss | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Ending Balance | 4,810 | 4,810 | |||
Equity Loss | NCM | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity in loss | 4,810 | ||||
Other Revenue | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Amortization of screen advertising advances | (23,463) | ||||
Total Revenues | (27,672) | (27,672) | |||
Other Revenue | Screen Advertising Rental Revenue | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Screen rental revenues earned under ESA | [2] | (4,209) | |||
Interest Expense - NCM | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Interest accrued related to significant financing component | 17,726 | ||||
Total noncash interest expense accrued related to NCM screen advertising advances | 17,726 | 17,726 | |||
Cash Received | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Receipt of excess cash distributions | 21,143 | ||||
Total cash received from NCM | $ 25,352 | 25,352 | |||
Cash Received | Screen Advertising Rental Revenue | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Screen rental revenues earned under ESA | [2] | $ 4,209 | |||
[1] | See Note 8 for the maturity of balance as of September 30, 2020. | ||||
[2] | Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $2,243. |
Summary of Activity with NCM _2
Summary of Activity with NCM Included in Company's Consolidated Financial Statements (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Equity Method Investments And Joint Ventures [Abstract] | |
Company's beverage concessionaire advertising costs | $ 2,243 |
National CineMedia - Additional
National CineMedia - Additional Information (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Schedule Of Equity Method Investments [Line Items] | |||
Number of additional common units of NCM received under common unit adjustment agreement | shares | 1,112,368 | ||
Value of common units received from NCM | $ 3,620 | $ 1,552 | |
Number of common units of NCM owned by Company | shares | 40,850,068 | ||
Interest in common units of NCM owned by Company | 25.00% | ||
Investment In NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Common unit convertible into share of NCMI common stock, conversion ratio | 1 | ||
Estimated fair value of investment using NCM's stock price | $ 111,112 | ||
NCMI common stock price | $ / shares | $ 2.72 | ||
Investment in NCM | $ 250,434 | $ 265,792 | |
NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Proceeds from ESA modification | $ 174,000 | ||
Deferred revenue amortization year and month | 2041-02 | ||
Investment in NCM | $ 250,434 | $ 265,792 | |
Deferred revenue or NCM screen advertising advances extended term | 2041-02 | ||
Recognized incremental screen advertising revenue and offsetting interest expense | $ 23,463 | $ 17,726 | |
NCM | Minimum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of incremental borrowing rates | 4.40% | ||
NCM | Maximum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of incremental borrowing rates | 8.30% |
Summary of Recognition of Reven
Summary of Recognition of Revenue Related to NCM Screen Advertising Advances (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
NCM Screen Advertising Advances | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation, amount | $ 346,237 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue remaining performance obligation, amount | $ 8,131 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue remaining performance obligation, amount | $ 8,693 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue remaining performance obligation, amount | $ 9,295 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue remaining performance obligation, amount | $ 9,940 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue remaining performance obligation, amount | $ 10,630 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue remaining performance obligation, amount | $ 299,548 |
Summary of Recognition of Rev_2
Summary of Recognition of Revenue Related to NCM Screen Advertising Advances (Detail1) $ in Thousands | Sep. 30, 2020USD ($) |
NCM Screen Advertising Advances | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation, amount | $ 346,237 |
Summary Financial Information f
Summary Financial Information for National CineMedia (Detail) - NCM - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 24, 2020 | Sep. 26, 2019 | Sep. 24, 2020 | Sep. 26, 2019 | Dec. 26, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Gross revenues | $ 6,000 | $ 110,513 | $ 74,700 | $ 297,613 | |
Operating income (loss) | (20,073) | 39,349 | (38,973) | 87,949 | |
Net income (loss) | (34,950) | $ 25,307 | (81,350) | $ 45,907 | |
Current assets | 170,749 | 170,749 | $ 185,400 | ||
Noncurrent assets | 693,018 | 693,018 | 706,600 | ||
Current liabilities | 47,153 | 47,153 | 125,500 | ||
Noncurrent liabilities | 1,073,742 | 1,073,742 | 947,800 | ||
Members deficit | $ (257,128) | $ (257,128) | $ (181,300) |
Summary of Activity for Each of
Summary of Activity for Each of Company's Other Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Schedule Of Equity Method Investments [Line Items] | |||||
Investments, beginning balance | $ 155,285 | ||||
Cash distributions received | (25,430) | $ (28,163) | |||
Equity in income (loss) of affiliates | $ (16,077) | $ 15,139 | (27,711) | 33,982 | |
Investments, ending balance | 118,589 | 118,589 | |||
Digital Cinema Implementation Partners | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Cash distributions received | [1] | $ (2,694) | (10,383) | $ (7,912) | |
Other Affiliates | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Investments, beginning balance | 155,285 | ||||
Cash distributions received | (11,261) | ||||
Equity in income (loss) of affiliates | (22,901) | ||||
Other | (2,534) | ||||
Investments, ending balance | 118,589 | 118,589 | |||
Other Affiliates | Digital Cinema Implementation Partners | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Investments, beginning balance | 124,696 | ||||
Cash distributions received | (10,383) | ||||
Equity in income (loss) of affiliates | (20,083) | ||||
Other | 50 | ||||
Investments, ending balance | 94,280 | 94,280 | |||
Other Affiliates | AC JV, LLC | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Investments, beginning balance | 5,022 | ||||
Cash distributions received | 0 | ||||
Equity in income (loss) of affiliates | (618) | ||||
Other | 0 | ||||
Investments, ending balance | 4,404 | 4,404 | |||
Other Affiliates | Digital Cinema Distribution Coalition | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Investments, beginning balance | 3,169 | ||||
Cash distributions received | (878) | ||||
Equity in income (loss) of affiliates | (1,197) | ||||
Other | 0 | ||||
Investments, ending balance | 1,094 | 1,094 | |||
Other Affiliates | FE Concepts, LLC | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Investments, beginning balance | 19,519 | ||||
Cash distributions received | 0 | ||||
Equity in income (loss) of affiliates | (1,003) | ||||
Other | 0 | ||||
Investments, ending balance | 18,516 | 18,516 | |||
Other Affiliates | Other Investments | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Investments, beginning balance | 2,879 | ||||
Cash distributions received | 0 | ||||
Equity in income (loss) of affiliates | 0 | ||||
Other | (2,584) | ||||
Investments, ending balance | $ 295 | $ 295 | |||
[1] | See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 9. These distributions are reported entirely within the U.S. operating segment. |
Other Investments - Additional
Other Investments - Additional Information (Detail) $ in Thousands | Apr. 30, 2018USD ($) | Sep. 30, 2020USD ($)ProjectionSystem | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)StudioProjectionSystem | Sep. 30, 2019USD ($) |
Schedule Of Equity Method Investments [Line Items] | |||||
Total revenues | $ 35,478 | $ 821,817 | $ 588,068 | $ 2,494,296 | |
Maximum | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Percentage of voting interest | 50.00% | 50.00% | |||
Minimum | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Percentage of voting interest | 20.00% | 20.00% | |||
Digital Cinema Implementation Partners | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Percentage of voting interest | 33.00% | 33.00% | |||
Economic interest in Digital Cinema Implementation Partners | 24.30% | 24.30% | |||
Number of major motion picture studio, long-term digital cinema deployment agreements | Studio | 6 | ||||
Number of equipment being leased under master equipment lease agreement | ProjectionSystem | 3,812 | 3,812 | |||
Digital Cinema Implementation Partners | Maximum | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Deployment period of digital cinema deployment agreements | 5 years | ||||
AC JV, LLC | Film rentals and advertising | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Event fees | $ 2,258 | 10,332 | |||
Digital Cinema Distribution Coalition | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Percentage of voting interest | 14.60% | 14.60% | |||
Payments for content delivery services | $ 208 | $ 703 | |||
CNMK Texas Properties, LLC | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Percentage of voting interest | 50.00% | ||||
Cash contributions | $ 20,000 | ||||
CNMK Texas Properties, LLC | AWSR Investments, LLC | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Percentage of voting interest | 50.00% | ||||
Cash contributions | $ 20,000 | ||||
CNMK Texas Properties, LLC | Theatre Services | AWSR Investments, LLC | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Total revenues | $ 3 | $ 19 |
Summary Financial Information_3
Summary Financial Information for DCIP (Detail) - Other Affiliates - Digital Cinema Implementation Partners - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Gross revenues | $ 1,084 | $ 40,200 | $ 20,809 | $ 125,869 | |
Operating income (loss) | (29,878) | 22,617 | (72,422) | 73,396 | |
Net income (loss) | (30,554) | $ 22,362 | (79,660) | $ 69,323 | |
Current assets | 28,299 | 28,299 | $ 51,382 | ||
Noncurrent assets | 461,276 | 461,276 | 581,547 | ||
Current liabilities | 58,375 | 58,375 | 70,515 | ||
Noncurrent liabilities | 710 | 710 | 190 | ||
Members' equity | $ 430,490 | $ 430,490 | $ 562,224 |
Transactions with DCIP (Detail)
Transactions with DCIP (Detail) - Digital Cinema Implementation Partners - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Schedule Of Equity Method Investments [Line Items] | |||||
Equipment lease payments | [1] | $ 346 | $ 1,105 | $ 1,384 | $ 3,357 |
Warranty reimbursements from DCIP | (2,953) | (3,123) | (8,842) | ||
Management service fees | $ 128 | $ 84 | $ 438 | ||
[1] | The Company negotiated an abatement of lease payments during the temporary closure of its theatres as a result of the COVID-19 pandemic. The Company did not remeasure its lease liabilities and lease right-of-use assets as a result of these negotiations in accordance with FASB guidance. See further discussion at Note 4. |
Share Based Awards - Additional
Share Based Awards - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020USD ($)shares$ / shares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | |
Stock Grants 2018 | |||
Stockholders Equity Note [Line Items] | |||
Achieved Percentage of IRR | 8.60% | ||
Restricted Stock | |||
Stockholders Equity Note [Line Items] | |||
Number of restricted shares granted | shares | 1,045,885 | ||
Market value of common stock on the dates of grant | $ / shares | $ 18.35 | ||
Compensation expense recognized by the Company during the period | $ 7,548 | $ 6,769 | |
Restricted Stock | Minimum | |||
Stockholders Equity Note [Line Items] | |||
Forfeiture rate for restricted stock awards | 0.00% | ||
Award vesting period for restricted stock | 1 year | ||
Restricted Stock | Maximum | |||
Stockholders Equity Note [Line Items] | |||
Forfeiture rate for restricted stock awards | 10.00% | ||
Award vesting period for restricted stock | 4 years | ||
Restricted Stock | Cinemark Holdings, Inc. | |||
Stockholders Equity Note [Line Items] | |||
Number of restricted shares granted | shares | 1,045,885 | ||
Compensation expense recognized by the Company during the period | $ 687 | 687 | |
Restricted Stock | Cinemark Holdings, Inc. | Minimum | |||
Stockholders Equity Note [Line Items] | |||
Market value of common stock on the dates of grant | $ / shares | $ 8.39 | ||
Restricted Stock | Cinemark Holdings, Inc. | Maximum | |||
Stockholders Equity Note [Line Items] | |||
Market value of common stock on the dates of grant | $ / shares | $ 32.12 | ||
Unvested Restricted Stock Awards | |||
Stockholders Equity Note [Line Items] | |||
Unrecognized compensation expense | $ 22,858 | $ 22,858 | |
Remaining Compensation Expense recognition period (in years) | 2 years | ||
Unvested Restricted Stock Awards | Cinemark USA, Inc. | |||
Stockholders Equity Note [Line Items] | |||
Unrecognized compensation expense | 22,208 | $ 22,208 | |
Unvested Restricted Stock Awards | Cinemark Holdings, Inc. | |||
Stockholders Equity Note [Line Items] | |||
Unrecognized compensation expense | 650 | $ 650 | |
Restricted Stock Units (RSUs) | |||
Stockholders Equity Note [Line Items] | |||
Market value of common stock on the dates of grant | $ / shares | $ 32.12 | ||
Unrecognized compensation expense | $ 13,559 | $ 13,559 | |
Remaining Compensation Expense recognition period (in years) | 2 years | ||
Fair Value Per Share | $ / shares | $ 15.95 | ||
Compensation expense recognized by the Company during the period | $ 4,624 | $ 3,030 | |
Share-based compensation arrangement by share-based payment award, description | The financial performance factors are based on an implied equity value concept that determines an internal rate of return (“IRR”) during the two fiscal year periods ending December 31, 2021 | ||
Internal rate of return, performance period | 2 years | ||
Percentage of IRR, which is the threshold | 6.00% | ||
Percentage of IRR, which is the target | 8.00% | ||
Percentage of IRR, which is the maximum | 14.00% | ||
Percentage of IRR expected | 11.00% | ||
Share-based compensation arrangement by share-based payment award, vesting condition | All restricted stock units granted during 2020 will vest subject to an additional two-year service requirement and will be paid in the form of Cinemark Holdings, Inc.’s common stock if the participant continues to provide services through the fourth anniversary of the grant date | ||
Expected forfeiture rate | 5.00% | ||
Number of hypothetical shares of common stock at stated IRR levels | shares | 978,591 | 978,591 | |
Restricted Stock Units (RSUs) | Stock Grants 2017 | |||
Stockholders Equity Note [Line Items] | |||
Achieved Percentage of IRR | 9.30% | ||
Restricted Stock Units (RSUs) | Maximum | Threshold IRR | |||
Stockholders Equity Note [Line Items] | |||
Number of restricted stock units expected to vest at threshold IRR | shares | 102,217 | ||
Restricted Stock Units (RSUs) | Maximum | Targeted IRR | |||
Stockholders Equity Note [Line Items] | |||
Number of restricted stock units expected to vest at target IRR | shares | 204,434 | ||
Restricted Stock Units (RSUs) | Maximum | Maximum IRR | |||
Stockholders Equity Note [Line Items] | |||
Vesting percentage of restricted stock units | 100.00% | ||
Restricted Stock Units (RSUs) | Cinemark Holdings, Inc. | |||
Stockholders Equity Note [Line Items] | |||
Compensation expense recognized by the Company during the period | $ 521 | ||
Number of hypothetical shares of common stock | shares | 436,681 |
Summary of Restricted Stock Act
Summary of Restricted Stock Activity (Detail) - Restricted Stock | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Shares of Restricted Stock | |
Shares of Restricted Stock, Beginning balance | shares | 783,823 |
Shares of Restricted Stock, Granted | shares | 1,045,885 |
Shares of Restricted Stock, Vested | shares | (326,281) |
Shares of Restricted Stock, Forfeited | shares | (56,133) |
Shares of Restricted Stock, Ending balance | shares | 1,447,294 |
Shares of Restricted Stock, Unvested restricted stock | shares | 1,447,294 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value Outstanding, Beginning | $ / shares | $ 37.53 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 18.35 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 35.63 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 33.63 |
Weighted Average Grant Date Fair Value Outstanding, Ending | $ / shares | 24.25 |
Weighted Average Grant Date Fair Value, Unvested restricted stock | $ / shares | $ 24.25 |
Summary of Restricted Stock Awa
Summary of Restricted Stock Award Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense recognized by the Company during the period | $ 7,548 | $ 6,769 | |
Number of restricted stock unit awards that vested during the period | 326,281 | ||
Restricted Stock | Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of share based awards that vested during the period | $ 8,567 | 6,650 | |
Income tax benefit recognized upon vesting of restricted stock awards | 2,533 | 1,228 | |
Restricted Stock | Cinemark Holdings, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense recognized by the Company during the period | 687 | 687 | |
Restricted Stock | Cinemark Holdings, Inc. | Director Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of share based awards that vested during the period | 377 | 980 | |
Income tax benefit recognized upon vesting of restricted stock awards | 145 | 245 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense recognized by the Company during the period | 4,624 | 3,030 | |
Fair value of share based awards that vested during the period | 3,669 | 3,550 | |
Income tax benefit recognized upon vesting of restricted stock awards | $ 215 | $ 175 | |
Number of restricted stock unit awards that vested during the period | 120,293 | 88,074 | |
Accumulated dividends paid upon vesting of restricted stock unit awards | $ 576 | $ 375 | |
Restricted Stock Units (RSUs) | Cinemark Holdings, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense recognized by the Company during the period | $ 521 |
Summary of Potential Number of
Summary of Potential Number of Shares Vesting under Restricted Stock Unit Awards (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)shares | |
Disclosure Of Restricted Stock Unit [Abstract] | |
Number of shares vesting at IRR of at least 6% | shares | 190,707 |
Number of shares vesting at IRR of at least 8% | shares | 286,060 |
Number of shares vesting at IRR of at least 14% | shares | 436,681 |
Value at grant at IRR of at least 6% | $ | $ 6,125 |
Value at grant at IRR of at least 8% | $ | 9,188 |
Value at grant at IRR of at least 14% | $ | $ 14,026 |
Summary of Goodwill (Detail)
Summary of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | ||
Goodwill [Line Items] | |||
Beginning Balance | [1] | $ 1,283,371 | |
Impairment | (16,128) | ||
Foreign currency translation adjustments | (17,816) | ||
Ending Balance | $ 1,249,427 | 1,249,427 | |
U.S. Operating Segment | |||
Goodwill [Line Items] | |||
Beginning Balance | [1] | 1,182,853 | |
Ending Balance | 1,182,853 | 1,182,853 | |
International Operating Segment | |||
Goodwill [Line Items] | |||
Beginning Balance | [1] | 100,518 | |
Impairment | (16,128) | (16,128) | |
Foreign currency translation adjustments | (17,816) | ||
Ending Balance | $ 66,574 | $ 66,574 | |
[1] | Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. |
Summary of Goodwill (Parentheti
Summary of Goodwill (Parenthetical) (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
U.S. Operating Segment | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 214,031 |
International Operating Segment | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 27,622 |
Intangible Assets (Detail)
Intangible Assets (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($) | ||
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Intangible assets with finite lives, Beginning balance | $ 85,007 | |
Other, Gross carrying amount | (2,018) | [1] |
Intangible assets with finite lives, Ending balance | 82,989 | |
Intangible assets with finite lives, Accumulated amortization, Beginning balance | (63,924) | |
Accumulated amortization | (3,569) | |
Other Accumulated Amortization of Intangible Assets | 0 | [1] |
Intangible assets with finite lives, Accumulated amortization, Ending balance | (67,493) | |
Net intangible assets with finite lives, Beginning balance | 21,083 | |
Amortization, intangible assets | (3,569) | |
Other, Finite lived intangible assets | (2,018) | [1] |
Net intangible assets with finite lives, Ending balance | 15,496 | |
Indefinite-lived Intangible Assets, Tradename and Other, Beginning Balance | 300,686 | |
Other, Tradename and Other | (613) | [1] |
Indefinite-lived Intangible Assets, Tradename and Other, Ending Balance | 300,073 | |
Total intangible assets - net, Beginning balance | 321,769 | |
Other, Total intangible assets - net | (2,631) | [1] |
Total intangible assets - net, Ending balance | $ 315,569 | |
[1] | Amount primarily represents foreign currency translation adjustments. |
Estimated Aggregate Future Amor
Estimated Aggregate Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets Net [Abstract] | ||
For the three months ended December 31, 2020 | $ 1,373 | |
For the twelve months ended December 31, 2021 | 2,765 | |
For the twelve months ended December 31, 2022 | 2,612 | |
For the twelve months ended December 31, 2023 | 2,514 | |
For the twelve months ended December 31, 2024 | 2,514 | |
Thereafter | 3,718 | |
Total | $ 15,496 | $ 21,083 |
Summary of Evaluations Performe
Summary of Evaluations Performed by Asset Classification (Detail) - Quantitative - Valuation, Market Approach | 3 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | ||
Goodwill | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Valuation multiple | [1] | 8 | |
Goodwill | Minimum | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Valuation multiple | [1] | 2.9 | |
Goodwill | Maximum | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Valuation multiple | [1] | 7 | |
Other Long-Lived Assets | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Valuation multiple | 6 | ||
Other Long-Lived Assets | Minimum | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Valuation multiple | 3.2 | ||
Other Long-Lived Assets | Maximum | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Valuation multiple | 6 | ||
[1] | The Company also used the income approach to test goodwill for impairment for the respective period. |
Long-Lived Asset Impairment Cha
Long-Lived Asset Impairment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Goodwill | $ 16,128 | |||
Impairment of long-lived assets | $ 24,595 | $ 27,304 | 41,214 | $ 45,382 |
U.S. Operating Segment | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Theatre properties | 2,075 | 24,502 | 5,718 | 26,754 |
Theatre operating lease right-of-use assets | 1,123 | 2,157 | 7,075 | 10,204 |
Cost method investment | 2,500 | 2,500 | ||
Impairment of long-lived assets | 5,698 | 26,659 | 15,293 | 36,958 |
International Operating Segment | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Theatre properties | 938 | 645 | 5,422 | 6,796 |
Theatre operating lease right-of-use assets | 1,654 | 4,194 | 1,628 | |
Goodwill | 16,128 | 16,128 | ||
Intangible assets | 177 | 177 | ||
Impairment of long-lived assets | $ 18,897 | $ 645 | $ 25,921 | $ 8,424 |
Summary of Liabilities Measured
Summary of Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Interest rate swap liabilities | [1] | $ 36,484 | $ 15,995 |
Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Interest rate swap liabilities | [1] | $ 36,484 | $ 15,995 |
[1] | See further discussion of interest rate swaps at Note 6. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value of assets transfers in or out, level 1 to level 2 | $ 0 |
Fair value of assets transfers in or out, level 2 to level 1 | 0 |
Fair value, asset transfers into Level 3 | 0 |
Fair value, asset transfers out of Level 3 | $ 0 |
Foreign Currency Translation -
Foreign Currency Translation - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Foreign Currency [Abstract] | ||
Accumulated other comprehensive income (loss) | $ 414,398 | $ 340,112 |
Cumulative foreign currency adjustments | $ 390,881 | $ 328,053 |
Cumulative inflation rate | 100.00% | |
Cumulative inflation period | 3 years |
Summary of Impact of Translatin
Summary of Impact of Translating Financial Statements of Company's International Subsidiaries (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019 | |
Foreign Currency Translation [Line Items] | |||||
Other Comprehensive Income (Loss) | $ (1,503) | $ (25,408) | $ (62,830) | $ (19,728) | |
Brazil | |||||
Foreign Currency Translation [Line Items] | |||||
Exchange Rate | 5.63 | 5.63 | 4.02 | ||
Other Comprehensive Income (Loss) | $ (51,453) | (14,492) | |||
Chile | |||||
Foreign Currency Translation [Line Items] | |||||
Exchange Rate | 785.93 | 785.93 | 736.86 | ||
Other Comprehensive Income (Loss) | $ (5,046) | (4,017) | |||
Peru | |||||
Foreign Currency Translation [Line Items] | |||||
Exchange Rate | 3.62 | 3.62 | 3.37 | ||
Other Comprehensive Income (Loss) | $ (3,187) | (203) | |||
Colombia | |||||
Foreign Currency Translation [Line Items] | |||||
Exchange Rate | 3,878.95 | 3,878.95 | 3,277.14 | ||
Other Comprehensive Income (Loss) | $ (2,584) | (1,507) | |||
Other foreign countries | |||||
Foreign Currency Translation [Line Items] | |||||
Other Comprehensive Income (Loss) | (560) | 491 | |||
International Subsidiaries | Cinemark USA, Inc. Stockholder's Equity | |||||
Foreign Currency Translation [Line Items] | |||||
Other Comprehensive Income (Loss) | $ (62,830) | $ (19,728) |
Summary of Impact of Translat_2
Summary of Impact of Translating Financial Statements of Company's International Subsidiaries (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Foreign Currency Translation [Line Items] | ||||
Foreign currency exchange loss | $ 2,251 | $ 4,406 | $ 6,183 | $ 4,785 |
Argentina | ||||
Foreign Currency Translation [Line Items] | ||||
Foreign currency exchange loss | $ 1,053 | $ 3,356 |
Supplemental Information to Con
Supplemental Information to Condensed Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Schedule Of Cash Flow Supplemental [Line Items] | |||
Cash paid for interest | $ 53,364 | $ 56,326 | |
Cash paid (refunds received) for income taxes, net | (108,776) | 69,498 | |
Noncash investing and financing activities: | |||
Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment | [1] | (7,933) | (13,642) |
Investment in NCM – receipt of common units (see Note 8) | 3,620 | 1,552 | |
NCM | |||
Noncash investing and financing activities: | |||
Interest expense - NCM (see Note 8) | $ (17,726) | $ (14,180) | |
[1] | Additions to theatre properties and equipment included in accounts payable as of September 30, 2020 and December 31, 2019 were $7,058 and $14,991, respectively. |
Supplemental Information to C_2
Supplemental Information to Condensed Consolidated Statements of Cash Flows (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Additions to theatre properties and equipment included in accounts payable | $ 7,058 | $ 14,991 |
Selected Financial Information
Selected Financial Information by Reportable Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 35,478 | $ 821,817 | $ 588,068 | $ 2,494,296 | |
Adjusted EBITDA | (127,511) | 170,116 | (178,377) | 568,011 | |
Capital expenditures | 20,659 | 71,343 | 67,618 | 186,512 | |
U.S. Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 34,409 | 633,045 | 470,007 | 1,930,787 |
International Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,069 | 188,772 | 118,061 | 563,509 | |
Operating Segments | U.S. Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 34,639 | 636,628 | 472,096 | 1,941,545 | |
Adjusted EBITDA | (105,279) | 132,705 | (144,918) | 454,665 | |
Capital expenditures | 17,903 | 50,679 | 54,604 | 148,609 | |
Operating Segments | International Operating Segment | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,069 | 188,772 | 118,061 | 563,509 | |
Adjusted EBITDA | (22,232) | 37,411 | (33,459) | 113,346 | |
Capital expenditures | 2,756 | 20,664 | 13,014 | 37,903 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ (230) | $ (3,583) | $ (2,089) | $ (10,758) | |
[1] | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. |
Reconciliation of Net Income (L
Reconciliation of Net Income (Loss) to Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||||||
Net income (loss) | $ (144,875) | $ (170,378) | $ (59,101) | $ 32,398 | $ 102,434 | $ 33,642 | $ (374,354) | $ 168,474 | |
Add (deduct): | |||||||||
Income taxes | (119,273) | 14,193 | (220,287) | 64,615 | |||||
Interest expense | [1] | 32,235 | 24,967 | 87,942 | 75,037 | ||||
Other (income) expense, net | [2] | 22,907 | (9,964) | 47,412 | (25,059) | ||||
Cash distributions from equity investees | 25,430 | 28,163 | |||||||
Depreciation and amortization | 62,543 | 67,760 | 191,380 | 196,795 | |||||
Impairment of long-lived assets | 24,595 | 27,304 | 41,214 | 45,382 | |||||
Restructuring costs | 524 | 20,062 | |||||||
(Gain) loss on disposal of assets and other | (13,327) | 2,453 | (10,997) | 8,057 | |||||
Non-cash rent expense | 816 | (1,102) | 1,649 | (3,252) | |||||
Share based awards compensation expense | 4,198 | 3,609 | 12,172 | 9,799 | |||||
Adjusted EBITDA | (127,511) | 170,116 | (178,377) | 568,011 | |||||
Digital Cinema Implementation Partners | |||||||||
Add (deduct): | |||||||||
Cash distributions from equity investees | [3] | 2,694 | 10,383 | 7,912 | |||||
Other Equity Investees | |||||||||
Add (deduct): | |||||||||
Cash distributions from equity investees | [4] | $ 2,146 | $ 5,804 | $ 15,047 | $ 20,251 | ||||
[1] | Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. | ||||||||
[2] | Includes interest income, foreign currency exchange gain (loss), equity in income of affiliates and interest expense - NCM and excludes distributions from NCM. | ||||||||
[3] | See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 9. These distributions are reported entirely within the U.S. operating segment. | ||||||||
[4] | Includes cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances (see Notes 8 and 9). These distributions are reported entirely within the U.S. operating segment. |
Selected Financial Informatio_2
Selected Financial Information by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 35,478 | $ 821,817 | $ 588,068 | $ 2,494,296 | |
Theatre Properties and Equipment - net | 1,545,823 | 1,545,823 | $ 1,735,247 | ||
Reportable Geographical Components | U.S. | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 34,639 | 636,628 | 472,096 | 1,941,545 | |
Theatre Properties and Equipment - net | 1,324,924 | 1,324,924 | 1,436,275 | ||
Reportable Geographical Components | Brazil | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 513 | 79,776 | 53,829 | 240,263 | |
Theatre Properties and Equipment - net | 71,338 | 71,338 | 118,367 | ||
Reportable Geographical Components | Other international countries | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 556 | 108,996 | 64,232 | 323,246 | |
Theatre Properties and Equipment - net | 149,561 | 149,561 | $ 180,605 | ||
Eliminations | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ (230) | $ (3,583) | $ (2,089) | $ (10,758) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 9 Months Ended | ||
Sep. 30, 2020USD ($)TheatreFacilityLease | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |||
Net receivable from Cinemark Holdings, Inc. | $ 27,767,000 | $ 24,319,000 | |
Cash dividends paid to Cinemark Holdings, Inc. | 42,000,000 | $ 118,825,000 | |
FE Concepts LLC | |||
Related Party Transaction [Line Items] | |||
Management fee revenues | $ 19,000 | ||
Equity method investment, ownership percentage | 50.00% | ||
Laredo Theatre, Ltd | |||
Related Party Transaction [Line Items] | |||
Company's interest in Laredo | 75.00% | ||
Lone Star Theatre's interest in Laredo | 25.00% | ||
Ownership interest held by David Roberts | 100.00% | ||
Percentage of common stock held by Chairman of the Board of Directors | 8.00% | ||
Percentage of management fees based on theatre revenues | 5.00% | ||
Maximum amount of theater revenue used to calculate management fees | $ 50,000,000 | ||
Percentage of management fees based on theatre revenues in excess | 3.00% | ||
Minimum amount of theater revenue used to calculate management fees | $ 50,000,000 | ||
Management fee revenues | 123,000 | 539,000 | |
Copper Beech Capital LLC | |||
Related Party Transaction [Line Items] | |||
Amount paid for the use of aircraft | $ 12,000 | 111,000 | |
Syufy Enterprises, LP | |||
Related Party Transaction [Line Items] | |||
Number of theatres leased | Theatre | 14 | ||
Number of parking facilities leased | Facility | 1 | ||
Total number of leases | Lease | 15 | ||
Number of leases with minimum annual rent | Lease | 14 | ||
Number of leases without minimum annual rent | Lease | 1 | ||
Total rent paid to Syufy | $ 17,271,000 | 20,006,000 | |
Number of leases with deferred rent payments | Lease | 4 | ||
Cinemark Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Net receivable from Cinemark Holdings, Inc. | $ 27,767,000 | $ 24,319,000 | |
Cash dividends paid to Cinemark Holdings, Inc. | $ 42,000,000 | $ 118,825,000 |
Summary Financial Information_4
Summary Financial Information of Subsidiary Guarantors - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Apr. 20, 2020 |
Condensed Consolidating Financial Information [Line Items] | ||
Interest rate | 8.75% | |
5.125% Senior Notes Due 2022 | ||
Condensed Consolidating Financial Information [Line Items] | ||
Outstanding aggregate principal amount of Senior Notes | $ 400,000 | |
Interest rate | 5.125% | |
4.875% Senior Notes Due 2023 | ||
Condensed Consolidating Financial Information [Line Items] | ||
Outstanding aggregate principal amount of Senior Notes | $ 755,000 | |
Interest rate | 4.875% | |
8.750% secured notes due 2023 | ||
Condensed Consolidating Financial Information [Line Items] | ||
Outstanding aggregate principal amount of Senior Notes | $ 250,000 | |
Interest rate | 8.75% |
Summary of Balance Sheet Inform
Summary of Balance Sheet Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||||||||
Current assets | $ 617,008 | $ 659,211 | ||||||
Current liabilities | 617,424 | 708,171 | ||||||
Long-term liabilities | 3,822,839 | 3,669,860 | ||||||
Stockholder's equity | 995,349 | $ 1,128,332 | $ 1,294,800 | 1,474,207 | $ 1,521,654 | $ 1,552,339 | $ 1,487,351 | $ 1,477,183 |
Cinemark USA, Inc. | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Current assets | 341,689 | 244,063 | ||||||
Noncurrent assets | 4,410,997 | 4,820,174 | ||||||
Current liabilities | 536,760 | 573,273 | ||||||
Long-term liabilities | 3,231,989 | 3,029,265 | ||||||
Stockholder's equity | 983,937 | 1,461,699 | ||||||
Guarantors | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Current assets | 186,027 | 444,481 | ||||||
Noncurrent assets | 1,396,608 | 1,403,687 | ||||||
Current liabilities | 138,020 | 147,366 | ||||||
Long-term liabilities | 474,683 | 500,566 | ||||||
Stockholder's equity | $ 969,933 | $ 1,200,236 |
Summary Income Statement Inform
Summary Income Statement Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||
Revenues | $ 35,478 | $ 821,817 | $ 588,068 | $ 2,494,296 | ||||
Operating loss | (210,067) | 59,120 | (466,262) | 273,899 | ||||
Net loss | $ (144,875) | $ (170,378) | $ (59,101) | $ 32,398 | $ 102,434 | $ 33,642 | (374,354) | $ 168,474 |
Cinemark USA, Inc. | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Revenues | 224,915 | |||||||
Operating loss | (193,236) | |||||||
Net loss | (373,653) | |||||||
Guarantors | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Revenues | 266,091 | |||||||
Operating loss | (161,599) | |||||||
Net loss | $ (157,502) |