Cinemark Holdings, Inc.CNK

Cinemark Holdings, Inc. Segments Disclosure

10-KFiled Feb 18, 20265 min read
20.
SEGMENTS - HOLDINGS

The international market and U.S. market are managed as separate reportable segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia and Paraguay. The Company sold its Ecuador subsidiary in September 2023. See Note 7 for a discussion of the sale of our Ecuador subsidiary. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenue. Holdings uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources.

The Company’s chief operating decision makers are the chief executive officer and the chief financial officer (together, the “CODM”). The CODM uses Adjusted EBITDA for each segment in the annual budget and forecasting process. The CODM considers Adjusted EBITDA with comparisons to budget, forecast and trends when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses Adjusted EBITDA to assess the performance of each segment and in determining the incentive compensation under its long-term incentive plan and evaluating performance metrics for certain equity awards.

The Company does not report total assets by segment because that information is not used to evaluate the performance or allocate resources between segments.

The following tables set forth a breakdown of selected financial information by reportable segment for Holdings for the periods presented, and include a reconciliation to Adjusted EBITDA:

 

 

Year Ended December 31, 2025

 

 

 

U.S. Reportable Segment

 

 

International Reportable Segment

 

 

Consolidated

 

Revenue

 

$

2,513.8

 

 

$

612.8

 

 

$

3,126.6

 

Elimination of intersegment revenue

 

 

(11.6

)

 

 

—

 

 

 

(11.6

)

Total Revenue

 

 

2,502.2

 

 

 

612.8

 

 

 

3,115.0

 

Less: (1)

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

 

733.8

 

 

 

143.2

 

 

 

877.0

 

Concession supplies

 

 

188.3

 

 

 

52.2

 

 

 

240.5

 

Salaries and wages

 

 

342.3

 

 

 

68.8

 

 

 

411.1

 

Facility lease expense

 

 

244.8

 

 

 

77.0

 

 

 

321.8

 

Utilities and other (2)

 

 

377.5

 

 

 

107.3

 

 

 

484.8

 

General and administrative

 

 

187.8

 

 

 

48.3

 

 

 

236.1

 

Other segment items (3)

 

 

(34.3

)

 

 

0.1

 

 

 

(34.2

)

Adjusted EBITDA (4)

 

$

462.0

 

 

$

115.9

 

 

$

577.9

 

 

 

 

Year Ended December 31, 2024

 

 

 

U.S. Reportable Segment

 

 

International Reportable Segment

 

 

Consolidated

 

Revenue

 

$

2,448.1

 

 

$

612.7

 

 

$

3,060.8

 

Elimination of intersegment revenue

 

 

(11.3

)

 

 

—

 

 

 

(11.3

)

Total Revenue

 

 

2,436.8

 

 

 

612.7

 

 

 

3,049.5

 

Less: (1)

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

 

714.4

 

 

 

145.2

 

 

 

859.6

 

Concession supplies

 

 

174.5

 

 

 

50.9

 

 

 

225.4

 

Salaries and wages

 

 

335.6

 

 

 

66.2

 

 

 

401.8

 

Facility lease expense

 

 

245.8

 

 

 

79.5

 

 

 

325.3

 

Utilities and other (2)

 

 

356.5

 

 

 

102.9

 

 

 

459.4

 

General and administrative

 

 

172.2

 

 

 

45.9

 

 

 

218.1

 

Other segment items (3)

 

 

(28.8

)

 

 

(1.5

)

 

 

(30.3

)

Adjusted EBITDA (4)

 

$

466.6

 

 

$

123.6

 

 

$

590.2

 

 

 

 

Year Ended December 31, 2023

 

 

 

U.S. Reportable Segment

 

 

International Reportable Segment

 

 

Consolidated

 

Revenue

 

$

2,428.1

 

 

$

651.4

 

 

$

3,079.5

 

Elimination of intersegment revenue

 

 

(12.8

)

 

 

—

 

 

 

(12.8

)

Total Revenue

 

 

2,415.3

 

 

 

651.4

 

 

 

3,066.7

 

Less: (1)

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

 

703.6

 

 

 

162.1

 

 

 

865.7

 

Concession supplies

 

 

169.1

 

 

 

52.2

 

 

 

221.3

 

Salaries and wages

 

 

333.8

 

 

 

69.3

 

 

 

403.1

 

Facility lease expense

 

 

246.6

 

 

 

83.1

 

 

 

329.7

 

Utilities and other (2)

 

 

355.4

 

 

 

111.4

 

 

 

466.8

 

General and administrative

 

 

155.7

 

 

 

43.1

 

 

 

198.8

 

Other segment items (3)

 

 

(12.8

)

 

 

—

 

 

 

(12.8

)

Adjusted EBITDA (4)

 

$

463.9

 

 

$

130.2

 

 

$

594.1

 

 

(1)
The significant expense categories and amounts presented align with the segment-level information that is regularly provided to the CODM.
(2)
Utilities and other for the International reportable segment is shown net of intersegment expenses of $12.8, $11.3 and $11.6 for the years ended December 31, 2023, 2024 and 2025, respectively.
(3)
Other segment items for each reportable segment includes non-cash rent, share-based compensation expense and cash distributions from equity investees (reported entirely within the U.S. reportable segment).
(4)
See the table below for a reconciliation of net income to Adjusted EBITDA.

The following table sets forth a reconciliation of net income to Adjusted EBITDA for Holdings for the periods presented:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2024

 

 

2025

 

Net income

 

$

191.5

 

 

$

312.9

 

 

$

141.5

 

Add (deduct):

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

29.9

 

 

 

(60.1

)

 

 

12.4

 

Interest expense (1)

 

 

150.4

 

 

 

144.0

 

 

 

142.3

 

Other income, net (2)

 

 

(19.6

)

 

 

(44.4

)

 

 

(3.8

)

Cash distributions from equity investees (3)

 

 

5.7

 

 

 

9.3

 

 

 

8.9

 

Depreciation and amortization

 

 

209.5

 

 

 

197.5

 

 

 

201.9

 

Impairment of long-lived and other assets

 

 

16.6

 

 

 

1.5

 

 

 

6.5

 

(Gain) loss on disposal of assets and other

 

 

(7.7

)

 

 

1.6

 

 

 

2.1

 

Loss on debt amendments and extinguishments

 

 

10.7

 

 

 

6.9

 

 

 

1.5

 

Loss on warrants

 

 

—

 

 

 

—

 

 

 

39.3

 

Non-cash rent expense

 

 

(17.9

)

 

 

(12.5

)

 

 

(11.2

)

Share-based awards compensation expense

 

 

25.0

 

 

 

33.5

 

 

 

36.5

 

Adjusted EBITDA

 

$

594.1

 

 

$

590.2

 

 

$

577.9

 
(1)
Includes amortization of debt issuance costs, amortization of original issue discount, and amortization of accumulated (losses) gains for amended swap agreements.
(2)
Includes interest income, foreign currency exchange and other related loss, interest expense - NCM, equity in income of affiliates, net gain (loss) on investment in NCMI and distributions from NCMI/NCM.
(3)
Reflects cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Note 8). These distributions are reported entirely within the U.S. reportable segment.

Holdings capital expenditures by reportable segment

The following table is a breakdown of capital expenditures by reportable segment for Holdings for the periods presented:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2024

 

 

2025

 

Capital expenditures

 

 

 

 

 

 

 

 

 

U.S.

 

$

111.5

 

 

$

109.1

 

 

$

161.4

 

International

 

 

38.0

 

 

 

41.7

 

 

 

57.5

 

Total capital expenditures

 

$

149.5

 

 

$

150.8

 

 

$

218.9

 

Financial Information About Geographic Area

The following table sets forth a breakdown of select financial information for Holdings by geographic area for the periods presented:

 

 

Year Ended December 31,

 

 

2023

 

2024

 

2025

Revenue

 

 

 

 

 

 

U.S.

 

$2,428.1

 

$2,448.1

 

$2,513.8

Brazil

 

233.4

 

243.8

 

212.1

Other international countries

 

418.0

 

368.9

 

400.7

Eliminations

 

(12.8)

 

(11.3)

 

(11.6)

Total

 

$3,066.7

 

$3,049.5

 

$3,115.0

 

 

 

As of December 31,

 

 

2024

 

2025

Theater properties and equipment, net

 

 

 

 

U.S.

 

$996.1

 

$993.1

Brazil

 

47.2

 

55.3

Other international countries

 

101.8

 

127.4

Total

 

$1,145.1

 

$1,175.8

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025
2023Feb 16, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 21, 2020
2018Feb 28, 2019
2017Feb 23, 2018
2016Feb 23, 2017
2015Feb 24, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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