AMC Other Presentation Deck

Changes Under New Lease Accounting Standard Under ASC 842, AMC's operating leases will be reported on the balance sheet and its legacy financing lease obligations will be reclassified as operating leases ● ● Operating Leases Prior GAAP (ASC 840) B/S: None P&L: Rent expense Financing Lease Obligations / FLOS Capital Leases / CLOS amc A WANDA GROUP COMPANY ● ● ● ● ● B/S: PP&E & Debt P&L: Interest & Depreciation B/S: PP&E & Debt P&L: Interest & Depreciation Operating Leases Financing Leases New GAAP (ASC 842) ● B/S: ROU Asset & Operating Lease Liability P&L: Rent expense Operating leases are now capitalized on the balance sheet as right-of-use assets and operating lease liabilities Financing lease obligations / FLOs are reclassified as operating leases, shifting interest expense and principal payments to rent expense Capital leases are renamed as financing leases; no changes in accounting B/S: PP&E & Debt P&L: Interest & Depreciation ASC 842 has no impact on AMC's operations, cash generation, or compliance with debt covenants / rating agency considerations LO 5

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