NOTE 2—LEASES The following table reflects the lease costs for the periods presented: | | | | | | | | | | | | | Three Months Ended | | | | | March 31, | | March 31, | (In millions) | | Consolidated Statements of Operations | | 2026 | | 2025 | Operating lease cost | | | | | | | | Theatre properties | | Rent | | $ | 192.1 | | $ | 190.2 | Theatre properties | | Operating expense | | | 1.3 | | | 1.2 | Equipment | | Operating expense | | | 12.6 | | | 9.7 | Office and other | | General and administrative: other | | | 1.2 | | | 1.3 | Finance lease cost | | | | | | | | | Amortization of finance lease assets | | Depreciation and amortization | | | 0.7 | | | 0.7 | Interest expense on lease liabilities | | Interest expense | | | 0.8 | | | 0.8 | Variable operating and finance lease cost | | | | | | | | | Theatre properties | | Rent | | | 32.0 | | | 27.9 | Theatre properties | | Interest expense | | | 0.6 | | | 0.4 | Equipment | | Operating expense | | | 14.6 | | | 9.4 | Total lease cost | | | | $ | 255.9 | | $ | 241.6 |
Cash flow and supplemental information are presented below: | | | | | | | | | Three Months Ended | | | March 31, | | March 31, | (In millions) | | 2026 | | 2025 | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | Operating cash flows used in finance leases | | $ | (0.7) | | $ | (0.8) | Operating cash flows used in operating leases | | | (241.3) | | | (220.4) | Financing cash flows used in finance leases | | | (1.2) | | | (0.8) | | | | | | | | Lease incentives: | | | | | | | Operating cash flows provided by operating leases | | | 17.8 | | | 4.2 | Supplemental disclosure of noncash leasing activities: | | | | | | | Right-of-use assets obtained in exchange for new operating lease liabilities (1) | | | 31.2 | | | 142.3 |
| (1) | Includes lease extensions and option exercises. |
The following table represents the weighted-average remaining lease term and discount rate as of March 31, 2026: | | | | | | | | | Weighted Average | | Weighted Average | | | Remaining | | Discount | Lease Term and Discount Rate | | Lease Term (years) | | Rate | Operating leases | | | 7.5 | | | 11.0% | Finance leases | | | 12.3 | | | 6.5% |
Minimum annual payments required under existing operating and finance leases and the net present value thereof as of March 31, 2026, are as follows: | | | | | | | | | Operating Lease | | Finance Lease | (In millions) | | Payments | | Payments | Nine months ending December 31, 2026 | | $ | 706.4 | | $ | 6.7 | 2027 | | | 892.7 | | | 8.8 | 2028 | | | 804.2 | | | 8.8 | 2029 | | | 698.8 | | | 8.6 | 2030 | | | 596.0 | | | 7.7 | 2031 | | | 492.8 | | | 6.6 | Thereafter | | | 1,500.9 | | | 26.7 | Total lease payments | | | 5,691.8 | | | 73.9 | Less imputed interest | | | (1,776.4) | | | (23.9) | Total operating and finance lease liabilities, respectively | | $ | 3,915.4 | | $ | 50.0 |
As of March 31, 2026, the Company had signed an additional operating lease agreement for one theatre that has not yet commenced. The lease has a 10-year term and total lease payments of approximately $6.9 million. The timing of the lease commencement is dependent on the landlord providing the Company with control and access to the theatre.
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