| REVENUE RECOGNITION |
NOTE 3—REVENUE RECOGNITION Disaggregation of Revenue. Revenue is disaggregated in the following tables by major revenue types and by timing of revenue recognition: | | | | | | | | | Three Months Ended | (In millions) | | March 31, 2026 | | March 31, 2025 | Major revenue types | | | | | Admissions | | $ | 578.4 | | $ | 473.5 | Food and beverage | | | 347.3 | | | 283.4 | Other theatre: | | | | | | | Advertising | | | 37.3 | | | 30.6 | Other | | | 82.4 | | | 75.0 | Other theatre | | | 119.7 | | | 105.6 | Total revenues | | $ | 1,045.4 | | $ | 862.5 |
| | | | | | | | | Three Months Ended | (In millions) | | March 31, 2026 | | March 31, 2025 | Timing of revenue recognition | | | | | Products and services transferred at a point in time | | $ | 919.4 | | $ | 759.3 | Products and services transferred over time (1) | | | 126.0 | | | 103.2 | Total revenues | | $ | 1,045.4 | | $ | 862.5 |
| (1) | Amounts primarily include subscription and advertising revenues. |
The following tables provide the balances of receivables, net and deferred revenues and income: | | | | | | | (In millions) | | March 31, 2026 | | December 31, 2025 | Current assets | | | | | | | Receivables related to contracts with customers | | $ | 43.4 | | $ | 95.1 | Miscellaneous receivables | | | 59.9 | | | 60.9 | Receivables, net | | $ | 103.3 | | $ | 156.0 |
| | | | | | | (In millions) | | March 31, 2026 | | December 31, 2025 | Current liabilities | | | | | | | Deferred revenues related to contracts with customers | | $ | 443.5 | | $ | 462.4 | Miscellaneous deferred income | | | 3.4 | | | 3.1 | Deferred revenues and income | | $ | 446.9 | | $ | 465.5 |
The significant changes in contract liabilities with customers included in deferred revenues and income are as follows: | | | | | | Deferred Revenues | | | Related to Contracts | (In millions) | | with Customers | Balance December 31, 2025 | | $ | 462.4 | Cash received in advance (1) | | | 117.1 | Customer loyalty rewards accumulated, net of expirations: | | | | Admission revenues (2) | | | 4.0 | Food and beverage revenues (2) | | | 9.3 | Other theatre revenues (2) | | | — | Reclassification to revenue as the result of performance obligations satisfied: | | | | Admission revenues (3) | | | (100.2) | Food and beverage revenues (3) | | | (26.8) | Other theatre revenues (4) | | | (21.8) | Foreign currency translation adjustment | | | (0.5) | Balance March 31, 2026 | | $ | 443.5 |
| (1) | Includes movie tickets, food and beverage, gift cards, exchange tickets, subscription membership fees, and other loyalty membership fees. |
| (2) | Amount of rewards accumulated, net of expirations, that are attributed to loyalty programs. |
| (3) | Amount of revenue recognized from redemptions of gift cards, exchange tickets, movie tickets, and loyalty programs. |
| (4) | Amounts relate to income from non-redeemed or partially redeemed gift cards, non-redeemed exchange tickets, subscription membership fees, and loyalty program membership fees. |
The significant changes to contract liabilities included in the exhibitor services agreement in the condensed consolidated balance sheets, are as follows: | | | | | | Exhibitor Services | (In millions) | | Agreement (1) | Balance December 31, 2025 | | $ | 459.1 | Other theatre revenue recognized as performance obligations are satisfied | | | (1.6) | Balance March 31, 2026 | | $ | 457.5 |
| (1) | The exhibitor services agreement contract liability relates to National CineMedia, LLC (“NCM”) common units that were previously received under the exhibitor services agreement dated February 13, 2007 and amended and restated as of December 13, 2013. On April 17, 2025, NCM entered into the Second Amended and Restated Exhibitor Services Agreement (the “Amended ESA”) with the Company. The term of the Amended ESA has been extended by five years through February 13, 2042. The Company treated the Amended ESA as a contract modification pursuant to ASC 606 – Revenue from Contracts with Customers. Accordingly, the Company has allocated the additional consideration received from the contract modification to the exhibitor services agreement contract liability and updated the discount rate used to account for the significant financing component to 16.12%. Prior to the contract modification, the weighted average discount rate used to account for the significant financing component was approximately 7.5%. The contract liability will be reclassified to other theatre revenue over the new term of the Amended ESA as the remaining performance obligations are satisfied. The non-cash revenue resulting from the satisfaction of the performance obligations is adjusted for in the condensed consolidated statements of cash flows under the changes in accrued expenses and other liabilities caption. |
Gift Cards and Exchange Tickets. The total amount of non-redeemed gift cards and exchange tickets included in deferred revenues and income as of March 31, 2026 was $312.1 million. This will be recognized as revenues as (i) the gift cards and exchange tickets are redeemed, (ii) the estimated non-redeemed gift card and exchange ticket revenues are recognized in proportion to the pattern of actual redemptions, which is estimated to occur over the next one to 36 months, or (iii) the gift cards or exchange tickets expire. Loyalty Programs. As of March 31, 2026, the amount of deferred revenues related to loyalty programs included in deferred revenues and income was $96.2 million. The earned points will be recognized as revenue as the points are redeemed or expire. Subscription membership fees and loyalty membership fees are recognized ratably over their respective membership periods. The Company applies the practical expedient in ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.
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