AMC has released on June 3rd a preliminary report of their Q1 for 2020. In that report they outline:
Net Loss for the first quarter of 2020 to be between $2,117.3 million and $2,417.3 million, based on
an **impairment charge** related to estimated long lived assets, indefinite-lived intangible assets and
goodwill of $1,800.0 million to $2,100.0 million, compared to a net loss of $130.2 million for the
three months ended March 31, 2019.
Adjusted Net Loss for the first quarter of 2020 to be $224.5 million compared to $101.8 million in
the same period a year ago. Adjusted Net Loss normalizes results for the impact of fair-value
remeasurement of the derivative liability and derivative asset related to the Company’s Convertible
Notes due 2024 and the impact related to the **impairment of long lived assets, indefinite-lived
intangible assets and goodwill** and removes the income tax impact of the Spain and Germany
valuation allowance.
I understand goodwill as the difference between a certain asset value and the price actual price paid for it. Like in an acquisition of another company for a certain markup. But I do not understand AMC's ability to report a loss of 1.8 to 2.1 billion USD because of "impairment charge related to estimated long lived assets, indefinite-lived intangible assets and goodwill of $1,800.0 million to $2,100.0 million"
What does that mean? Is that related to losses due to COVID19? Or something else? How does this impact their balance sheet?