SEAWORLD ENTERTAINMENT, INC., 10-K filed on 3/1/2023
Annual Report
v3.22.4
Document and Entity Information - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Feb. 23, 2023
Jun. 30, 2022
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2022    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Entity Registrant Name SeaWorld Entertainment, Inc.    
Entity Central Index Key 0001564902    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Interactive Data Current Yes    
Current Fiscal Year End Date --12-31    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Public Float     $ 1,782,223,945
Entity Common Stock, Shares Outstanding   63,919,409  
Entity Shell Company false    
Entity Small Business false    
Entity Emerging Growth Company false    
Title of 12(b) Security Common Stock, par value $0.01 per share    
Trading Symbol SEAS    
Security Exchange Name NYSE    
Entity File Number 001-35883    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 27-1220297    
Entity Address, Address Line One 6240 Sea Harbor Drive    
Entity Address, City or Town Orlando    
Entity Address, State or Province FL    
Entity Address, Postal Zip Code 32821    
City Area Code (407)    
Local Phone Number 226-5011    
Documents Incorporated by Reference

Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission relating to the 2023 Annual Meeting of Stockholders, which statement will be filed pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, are incorporated by reference into Part III of this report.

    
Document Annual Report true    
ICFR Auditor Attestation Flag true    
Document Transition Report false    
Auditor Firm ID 34    
Auditor Name Deloitte & Touche LLP    
Auditor Location Tampa, FL    
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 79,196 $ 443,707
Accounts receivable, net 71,050 76,948
Inventories 55,190 29,478
Prepaid expenses and other current assets 28,260 17,263
Total current assets 233,696 567,396
Property and equipment, at cost 3,576,092 3,385,308
Accumulated depreciation (1,869,413) (1,740,144)
Property and equipment, net 1,706,679 1,645,164
Goodwill 66,278 66,278
Trade names/trademarks, net 157,000 157,000
Right of use assets-operating leases 130,479 132,217
Deferred tax assets, net 12,332 23,995
Other assets, net 19,323 18,266
Total assets 2,325,787 2,610,316
Current liabilities:    
Accounts payable and accrued expenses 159,947 134,311
Current maturities of long-term debt 12,000 12,000
Operating lease liabilities 3,387 2,895
Accrued salaries, wages and benefits 17,423 22,156
Deferred revenue 169,535 154,793
Other accrued liabilities 46,914 45,811
Total current liabilities 409,206 371,966
Long-term debt, net 2,099,059 2,104,835
Long-term operating lease liabilities 115,396 117,046
Deferred tax liabilities, net 96,627 12,803
Other liabilities 43,163 37,582
Total liabilities 2,763,451 2,644,232
Commitments and contingencies (Note 15)
Stockholders’ Deficit:    
Preferred stock, $0.01 par value-authorized, 100,000,000 shares, no shares issued or outstanding at December 31, 2022 and 2021
Common stock, $0.01 par value-authorized, 1,000,000,000 shares; 96,287,771 and 95,541,992 shares issued at December 31, 2022 and 2021, respectively 963 955
Additional paid-in capital 710,151 711,474
Retained earnings (accumulated deficit) 175,903 (115,287)
Treasury stock, at cost (32,376,539 and 19,953,042 shares at December 31, 2022 and 2021, respectively) (1,324,681) (631,058)
Total stockholders’ deficit (437,664) (33,916)
Total liabilities and stockholders’ deficit $ 2,325,787 $ 2,610,316
v3.22.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 96,287,771 95,541,992
Treasury stock, shares 32,376,539 19,953,042
v3.22.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net revenues:      
Total revenues $ 1,731,237 $ 1,503,730 $ 431,779
Costs and expenses:      
Cost of food, merchandise and other revenues 135,217 114,287 36,712
Operating expenses (exclusive of depreciation and amortization shown separately below) 735,687 622,419 388,473
Selling, general and administrative expenses 200,074 184,871 94,885
Severance and other separation costs 108 1,531 2,826
Depreciation and amortization 152,620 148,660 150,546
Total costs and expenses 1,223,706 1,071,768 673,442
Operating income (loss) 507,531 431,962 (241,663)
Other (income) expense, net (43) 144 276
Interest expense 117,501 116,642 100,907
Loss on early extinguishment of debt and write-off of discounts and debt issuance costs   58,827  
Income (loss) before income taxes 390,073 256,349 (342,846)
Provision for (benefit from) income taxes 98,883 (164) (30,525)
Net income (loss) 291,190 256,513 (312,321)
Other comprehensive income (loss):      
Unrealized gain on derivatives, net of tax     1,559
Comprehensive income (loss) $ 291,190 $ 256,513 $ (310,762)
Earnings (loss) per share:      
Earnings (loss) per share, basic $ 4.18 $ 3.28 $ (3.99)
Earnings (loss) per share, diluted $ 4.14 $ 3.22 $ (3.99)
Weighted average common shares outstanding:      
Basic 69,607 78,302 78,194
Diluted 70,280 79,575 78,194
Admissions [Member]      
Net revenues:      
Total revenues $ 965,232 $ 851,891 $ 255,376
Food, Merchandise and Other [Member]      
Net revenues:      
Total revenues $ 766,005 $ 651,839 $ 176,403
v3.22.4
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($)
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
(Accumulated Deficit) Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock, at Cost [Member]
Beginning Balance at Dec. 31, 2019 $ 210,892,000 $ 940,000 $ 673,893,000 $ (59,479,000) $ (1,559,000) $ (402,903,000)
Beginning Balance, shares at Dec. 31, 2019   94,044,203        
Equity-based compensation 7,467,000   7,467,000      
Unrealized gain on derivatives, net of tax 1,559,000       $ 1,559,000  
Vesting of restricted shares   $ 6,000 (6,000)      
Vesting of restricted shares, shares   609,286        
Shares withheld for tax withholdings (3,915,000) $ (2,000) (3,913,000)      
Shares withheld for tax withholdings, shares   (158,865)        
Exercise of stock options 2,920,000 $ 2,000 2,918,000      
Exercise of stock options, shares   157,624        
Adjustments to previous dividend declarations 1,000   1,000      
Repurchase of shares of treasury stock, at cost (12,406,000)         (12,406,000)
Net income (loss) (312,321,000)     (312,321,000)    
Ending Balance at Dec. 31, 2020 (105,803,000) $ 946,000 680,360,000 (371,800,000)   (415,309,000)
Ending Balance, shares at Dec. 31, 2020   94,652,248        
Equity-based compensation 39,722,000   39,722,000      
Vesting of restricted shares   $ 9,000 (9,000)      
Vesting of restricted shares, shares   888,406        
Shares withheld for tax withholdings (14,506,000) $ (3,000) (14,503,000)      
Shares withheld for tax withholdings, shares   (288,229)        
Exercise of stock options 5,907,000 $ 3,000 5,904,000      
Exercise of stock options, shares   289,567        
Repurchase of shares of treasury stock, at cost (215,749,000)         (215,749,000)
Net income (loss) 256,513,000     256,513,000    
Ending Balance at Dec. 31, 2021 $ (33,916,000) $ 955,000 711,474,000 (115,287,000)   (631,058,000)
Ending Balance, shares at Dec. 31, 2021 95,541,992 95,541,992        
Equity-based compensation $ 18,158   18,158      
Vesting of restricted shares   $ 10,000 (10,000)      
Vesting of restricted shares, shares   946,169        
Shares withheld for tax withholdings (22,501,000) $ (3,000) (22,498,000)      
Shares withheld for tax withholdings, shares   (321,471)        
Exercise of stock options $ 3,028,000 $ 1,000 3,027,000      
Exercise of stock options, shares 121,081 121,081        
Repurchase of shares of treasury stock, at cost $ (693,623,000)         693,623,000
Net income (loss) 291,190,000     291,190,000    
Ending Balance at Dec. 31, 2022 $ (437,664,000) $ 963,000 $ 710,151,000 $ 175,903,000   $ (1,324,681,000)
Ending Balance, shares at Dec. 31, 2022 96,287,771 96,287,771        
v3.22.4
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Parenthetical)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
shares
Repurchase of treasury shares, shares | shares 469,785
Accumulated Other Comprehensive Income (Loss) [Member]  
Unrealized gain (loss) on derivatives, tax (benefit) expense | $ $ 572
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash Flows From Operating Activities:      
Net income (loss) $ 291,190 $ 256,513 $ (312,321)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Depreciation and amortization 152,620 148,660 150,546
Amortization of debt issuance costs and discounts 6,234 6,419 5,025
Loss on early extinguishment of debt and write-off of discounts and debt issuance costs   52,011  
Deferred income tax provision (benefit) 95,487 (4,117) (31,414)
Equity-based compensation 18,158 39,722 7,467
Other including loss on impairment or disposal of assets, net 15,280 5,816 6,046
Changes in assets and liabilities:      
Accounts receivable 10,334 (58,927) 24,761
Inventories (27,112) 644 2,267
Prepaid expenses and other current assets (7,020) (2,424) 5,210
Accounts payable and accrued expenses 7,849 20,050 1,640
Accrued salaries, wages and benefits (4,733) 11,375 (4,718)
Deferred revenue 329 33,070 25,065
Other accrued liabilities 1,961 (3,785) (422)
Right-of-use assets and operating lease liabilities 580 396 561
Other assets and liabilities 3,431 (2,411) (442)
Net cash provided by (used in) operating activities 564,588 503,012 (120,729)
Cash Flows From Investing Activities:      
Capital expenditures (200,705) (128,854) (109,175)
Net cash used in investing activities (200,705) (128,854) (109,175)
Cash Flows From Financing Activities:      
Proceeds from the issuance of debt, net   1,922,222 713,658
Repayments of long-term debt (12,000) (2,032,728) (15,505)
Proceeds from draw on revolving credit facility     272,500
Repayments of revolving credit facility     (322,500)
Purchase of treasury stock (693,623) (215,749) (12,406)
Payment of tax withholdings on equity-based compensation through shares withheld (22,501) (14,506) (3,915)
Exercise of stock options 3,028 5,907 2,920
Debt issuance costs (469) (23,272) (7,530)
Other financing activities (484) (6,771) (3,018)
Net cash (used in) provided by financing activities (726,049) (364,897) 624,204
Change in Cash and Cash Equivalents, including Restricted Cash (362,166) 9,261 394,300
Cash and Cash Equivalents, including Restricted Cash—Beginning of year 444,486 435,225 40,925
Cash and Cash Equivalents, including Restricted Cash—End of year 82,320 444,486 435,225
Supplemental Disclosures of Noncash Financing Activities      
Capital expenditures in accounts payable and accrued expenses $ 40,729 20,468 12,544
Other financing arrangements   $ 4,239 $ 3,890
v3.22.4
Description of the Business
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Description of the Business

1. DESCRIPTION OF THE BUSINESS

SeaWorld Entertainment, Inc., through its wholly-owned subsidiary, SeaWorld Parks & Entertainment, Inc. (“SEA”) (collectively, the “Company”), owns and operates twelve theme parks within the United States. Prior to December 1, 2009, the Company did not have any operations. On December 1, 2009, the Company acquired all of the outstanding equity interest of Busch Entertainment LLC and affiliates from Anheuser Busch Companies, Inc. and Anheuser-Busch InBev SA/NV (“ABI”). The Company completed an initial public offering in April 2013. As of December 31, 2022, Hill Path Capital LP ("Hill Path") owned approximately 42.6% of the Company's total outstanding common stock.

The Company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas; and San Diego, California, and Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. The Company operates water park attractions in Orlando, Florida (Aquatica); San Antonio, Texas (Aquatica); Tampa, Florida (Adventure Island); and Williamsburg, Virginia (Water Country USA). The Company also operates a reservations-only theme park in Orlando, Florida (Discovery Cove), a theme park in Langhorne, Pennsylvania (Sesame Place Philadelphia) and a theme park in Chula Vista, California (Sesame Place San Diego).

During the years ended December 31, 2022 and 2021, respectively, approximately 57% and 58% of the Company’s revenues were generated in the State of Florida which exposes the Company to risks affecting the Florida market, such as natural disasters, severe weather or other incidents. During the year ended December 31, 2020, more than 70% of the Company’s revenues were generated in the State of Florida, due in part to the temporary park closures and limited operations as a result of the COVID-19 pandemic. See Impact of Global COVID-19 Pandemic section which follows for further discussion.

Impact of Global COVID-19 Pandemic

The Company’s results of operations for the year ended December 31, 2022 continued to be impacted by the global COVID-19 pandemic due in part to a decline in both international and group-related attendance from historical levels. Additionally, the Company's results of operations for the years ended December 31, 2021 and 2020 were impacted by the following factors: (i) capacity limitations, modified/limited operations and/or temporary park closures which were in place for portions of the respective periods; (ii) decreased demand due to public concerns and government restrictions associated with the pandemic; and (iii) severe restrictions on international travel.

In response to the COVID-19 pandemic, and in compliance with government restrictions, the Company temporarily closed all of its theme parks effective March 16, 2020. Beginning in June 2020, the Company began the phased reopening of some of its parks with enhanced health, safety and cleaning measures, capacity limitations and/or modified/limited operations, which at times included reduced hours and/or reduced operating days. By the end of August 2020, the Company had reopened 10 of its 12 parks on a limited basis and by the end of the second quarter of 2021, all of the Company’s 12 parks were open, and operating without COVID-19 related capacity limitations.

Due to the COVID-19 pandemic, the Company took a number of proactive measures in 2020 for the safety of its guests, employees and animals, to manage costs and expenditures, and to maximize liquidity in response to the temporary park closures and limited reopenings related to the COVID-19 pandemic. Some of the measures to manage costs and expenditures taken in 2020 included, but were not limited to: (i) furloughed approximately 95% of its employees in 2020 upon closing all of its parks; (ii) temporarily reduced executive officers’ base salary by 20% through November 2020; (iii) eliminated and/or deferred all non-essential operating expenses at all of its parks and corporate headquarters while the parks were closed and actively managed operating expenses as parks reopened; (iv) eliminated substantially all advertising and marketing spend while the parks were closed and strategically managed marketing spend as parks reopened; and (v) substantially reduced or deferred all capital expenditures starting in March 2020 (other than minimal essential capital expenditures) when the parks were closed and postponed the opening of rides that were still under construction and scheduled to open in 2020.

The Company continuously monitors guidance from federal, state and local authorities and engages with governmental authorities as well as medical/scientific consultants. The Company may adjust its plans accordingly as laws change and new information and guidance becomes available. The COVID-19 pandemic has had, and may continue to have, a material impact on the Company’s financial results.
v3.22.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries, including SEA. All intercompany accounts have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions include, but are not limited to, the accounting for self-insurance, deferred tax assets and liabilities, deferred revenue, equity compensation, the valuation of goodwill and other indefinite-lived intangible assets and reviews for potential impairment of long-lived assets. Estimates are based on various factors including current and historical trends, as well as other pertinent company and industry data. The Company regularly evaluates this information to determine if it is necessary to update the basis for its estimates and to adjust for known changes. Actual results could differ from those estimates. Based on the uncertainty relating to the COVID-19 pandemic, the emergence of new variants, and the current operating environment, including but not limited to the impact or timing of government restrictions, any future capacity limitations due to social distancing guidelines, public sentiment on social gatherings, travel and attendance patterns, travel restrictions, effectiveness and adoption of vaccines, boosters and/or medications, the impact of new variants, supply chain disruptions, inflationary pressures, foreign exchange rates and/or additional actions which could be taken by government authorities to manage the pandemic or other macroeconomic issues, the Company is not certain of the ultimate impact these factors could have on its estimates, business or results of operations.

Cash and Cash Equivalents

Cash and cash equivalents include cash held at financial institutions as well as operating cash onsite at each theme park to fund daily operations and amounts due from third-party credit card companies with settlement terms of less than four days. The amounts due from third-party credit card companies totaled $18.6 million and $11.5 million at December 31, 2022 and 2021, respectively. The cash balances in all accounts held at financial institutions are insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”) through December 31, 2022. At times, cash balances may exceed federally insured amounts and potentially subject the Company to a concentration of credit risk. Management believes that no significant concentration of credit risk exists with respect to these cash balances because of its assessment of the creditworthiness and financial viability of the respective financial institutions.

From time to time, the Company may invest in certain highly liquid instruments with original maturities of three months or less. These instruments may include money market mutual funds, certificates of deposit or time deposits, among others, which may or may not qualify for FDIC insurance. The Company classifies any such instruments as cash and cash equivalents based on their short-term maturities.

Restricted Cash

Restricted cash is recorded in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Restricted cash as of December 31, 2022 and 2021 consists primarily of advanced funds for which costs have yet to be incurred related to the Company’s international services agreements. See further discussion in Note 4–Revenues.

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Cash and cash equivalents

 

$

79,196

 

 

$

443,707

 

Restricted cash, included in prepaid expenses and other current assets

 

 

3,124

 

 

 

779

 

Total cash, cash equivalents and restricted cash

 

$

82,320

 

 

$

444,486

 

Accounts Receivable—Net

Accounts receivable are reported at net realizable value and consist primarily of amounts due from customers for the sale of admission products, including amounts due for admissions products purchased on monthly installment arrangements. The Company is not exposed to a significant concentration of credit risk. The Company records an allowance on trade accounts receivable with an offset to the provision for bad debt for estimated credit losses expected based on its history of uncollectable accounts. For all periods presented, the provision for bad debt was immaterial. The Company also records an allowance for estimated credit losses on amounts due from monthly installment arrangements based on historical default rates. As of December 31, 2022 and 2021, the Company recorded $13.8 million and $17.7 million, respectively, as an allowance on its installment arrangements, which is included in accounts receivable, net, in the accompanying consolidated balance sheets, with a corresponding reduction to deferred revenue.

Inventories

Inventories are accounted for using the weighted average cost method and are stated at the lower of cost or net realizable value. Inventories consist primarily of products for resale, including merchandise, culinary items and miscellaneous supplies. Obsolete or excess inventories are recorded at their estimated realizable value.

Property and Equipment—Net

Property and equipment are recorded at cost. The cost of ordinary or routine maintenance, repairs, spare parts and minor renewals is expensed as incurred. Development costs associated with new attractions and products are generally capitalized after necessary feasibility studies have been completed and final concept or contracts have been approved. The cost of assets is depreciated using the straight-line method based on the following estimated useful lives:

 

Land improvements

 

10-40 years

 

Buildings

 

5-40 years

 

Rides, attractions and equipment

 

3-20 years

 

Animals

 

1-50 years

 

 

Certain costs related to animals exhibited in the theme parks are capitalized and amortized over their estimated lives (1-50 years). All costs to care for animals are expensed as incurred. Construction in progress assets consist primarily of new rides, attractions and infrastructure improvements that have not yet been placed in service. These assets are stated at cost and are not depreciated. Once construction of the assets is completed and placed into service, assets are reclassified to the appropriate asset class based on their nature and depreciated in accordance with the useful lives above. Debt interest is capitalized on all active construction projects. Total interest capitalized for the years ended December 31, 2022, 2021 and 2020 was $6.3 million, $7.3 million and $6.3 million, respectively.

Computer System Development Costs

The Company capitalizes computer system development costs that meet established criteria and, once placed in service, amortizes those costs to expense on a straight-line basis over five years. Total capitalized costs related to computer system development costs, net of accumulated amortization, were $2.0 million and $1.5 million as of December 31, 2022 and 2021, respectively, and are recorded in other assets in the accompanying consolidated balance sheets. Accumulated amortization was $12.9 million and $12.4 million as of December 31, 2022 and 2021, respectively. Amortization expense of capitalized computer system development costs during the years ended December 31, 2022, 2021 and 2020 was $0.7 million, $1.4 million and $1.7 million, respectively, and is recorded in depreciation and amortization in the accompanying consolidated statements of comprehensive income (loss). Systems reengineering costs do not meet the proper criteria for capitalization and are expensed as incurred.

Goodwill and Other Indefinite-Lived Intangible Assets

Goodwill and other indefinite-lived intangible assets are not amortized, but instead reviewed for impairment at least annually during the fourth quarter, and as of an interim date should factors or indicators become apparent that would require an interim test, with ongoing recoverability based on applicable reporting unit overall financial performance and consideration of significant events or changes in the overall business environment or macroeconomic conditions. Such events or changes in the overall business environment could include, but are not limited to, significant negative trends or unanticipated changes in the competitive or macroeconomic environment.

In assessing goodwill for impairment, the Company may choose to initially evaluate qualitative factors to determine if it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. The Company considers several factors, including macroeconomic conditions, industry and market conditions, overall financial performance of the reporting unit, changes in management, strategy or customers, and relevant reporting unit specific events such as a change in the carrying amount of net assets, a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit, and the testing of recoverability of a significant asset group within a reporting unit. If the qualitative assessment is not conclusive, then a quantitative impairment analysis for goodwill is performed at the reporting unit level. The Company may also choose to perform this quantitative impairment analysis instead of the qualitative analysis. The quantitative impairment analysis compares the estimated fair value of the reporting unit, determined using the income and/or market approach, to its recorded amount. If the recorded amount exceeds the fair value, then a goodwill impairment charge is recorded for the difference up to the recorded amount of goodwill.

The determination of fair value in the Company’s goodwill impairment analysis is based on an estimate of fair value for the relevant reporting unit utilizing known and estimated inputs at the evaluation date. Some of those inputs include, but are not limited to, estimates of future revenue and expense growth, estimated market multiples, expected capital expenditures, income tax rates and cost of invested capital.

The Company’s other indefinite-lived intangible assets consist of certain trade names/trademarks and other intangible assets which, after considering legal, regulatory, contractual, and other competitive and economic factors, are determined to have indefinite lives and are valued using the relief from royalty method. Trade names/trademarks are combined by brand as a unit of accounting when testing for impairment as the brand represents the highest and best use of the asset and drives the Company’s marketing strategy and international license agreements. Estimates required in this valuation method include estimated future revenues impacted by the trade names/trademarks, royalty rates, and appropriate discount rates. Projections are based on management’s best estimates given recent financial performance, market trends, strategic plans, brand awareness, operating characteristics by park, and other available information. See Note 9–Goodwill and Trade Names/Trademarks, Net, for further details.

Impairment of Long-Lived Assets

All long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the assets may not be recoverable. An impairment loss may be recognized when estimated undiscounted future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. The measurement of the impairment loss to be recognized is based upon the difference between the estimated fair value and the carrying amounts of the assets.

Fair value is generally determined based upon a discounted cash flow analysis. In order to determine if an asset has been impaired, assets are grouped and tested at the lowest level for which identifiable independent cash flows are available (generally a theme park). See further discussion in Note 8–Property and Equipment, Net.

Self-Insurance Reserves

Reserves are recorded for the estimated amounts of guest and employee claims and expenses incurred each period that are not covered by insurance. Reserves are established for both identified claims and incurred but not reported (“IBNR”) claims. Such amounts are accrued for when claim amounts become probable and estimable. Reserves for identified claims are based upon the Company’s historical claims experience and third-party estimates of settlement costs. Reserves for IBNR claims are based upon the Company’s claims data history, actuarially determined loss development factors and qualitative considerations such as claims management activities. The Company maintains self-insurance reserves for healthcare, auto, general liability and workers’ compensation claims. Total claims reserves were $37.0 million at December 31, 2022, of which $1.8 million is recorded in accrued salaries, wages and benefits, $8.6 million is recorded in other accrued liabilities and the remaining long-term portion is recorded in other liabilities in the accompanying consolidated balance sheets. Total claims reserves were $30.5 million at December 31, 2021, of which $1.7 million is recorded in accrued salaries, wages and benefits, $8.2 million is recorded in other accrued liabilities and the remaining long-term portion is recorded in other liabilities in the accompanying consolidated balance sheets. All reserves are periodically reviewed for changes in facts and circumstances and adjustments are made as necessary.

Debt Issuance Costs

Debt issuance costs are amortized to interest expense using the effective interest method over the term of the related debt and are included in long-term debt, net, in the accompanying consolidated balance sheets. See further discussion in Note 11–Long-Term Debt.

Share Repurchase Program and Treasury Stock

From time to time, the Company’s Board of Directors (the “Board”) may authorize share repurchases of common stock. Shares repurchased under Board authorizations are currently held in treasury for general corporate purposes. The Company accounts for treasury stock on the trade date under the cost method. Treasury stock at December 31, 2022 and 2021 is reflected within stockholders’ deficit. See further discussion of the Company’s share repurchase program in Note 19–Stockholders’ Deficit.

Revenue Recognition

The Company records revenue in accordance with Accounting Standards Codification (“ASC”), Topic 606, Revenue from Contracts with Customers, which is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: (i) identify the contracts with customers; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as the Company satisfies the performance obligations. ASC 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. Revenue is recorded net of sales-related taxes collected from guests and remitted or payable to government taxing authorities.

Admissions Revenue

Admissions revenue primarily consists of single-day tickets, annual or season passes or other multi-day or multi-park admission products. Admission products with similar characteristics are analyzed using a portfolio approach for each separate park as the Company expects that the effects on the consolidated financial statements of applying ASC 606 to the portfolio does not differ materially from applying the guidance to individual contracts within the portfolio. For single-day tickets, the Company recognizes revenue at a point in time, upon admission to the park. Annual passes, season passes or other multi-day or multi-park passes allow guests access to specific parks over a specified time period. For these pass and multi-use products, revenue is deferred and recognized over the terms of the admission product based on estimated redemption rates for similar products and is adjusted periodically. The Company estimates redemption rates using historical and forecasted attendance trends by park for similar products. Attendance trends factor in seasonality and are adjusted based on actual trends periodically. These estimated redemption rates impact the timing of when revenue is recognized on these products. Actual results could materially differ from these estimates based on actual attendance patterns. Revenue is recognized on a pro-rata basis based on the estimated allocated selling price of the admission product. For pass products purchased on an installment plan that have met their initial commitment period and have transitioned to a month to month basis, monthly charges are recognized as revenue as payments are received each month, with the exception of payments received during the temporary park closures in 2020 (see further discussion which follows). For multi-day admission products, revenue is allocated based on the number of visits included in the pass and recognized ratably based on each admission into the theme park.

In 2020, as a result of the temporary park closures due to the COVID-19 pandemic, the Company upgraded some of its pass products and extended pass expiration dates for at least the equivalent period the related parks were closed. As a result, the Company adjusted its estimated redemption and recognition patterns on these products to reflect the fact that there was no attendance during the park closures and accordingly the Company did not recognize revenue from these admission products while the parks were temporarily closed in 2020. For passes under installment plans that had transitioned to a month to month basis, the Company temporarily paused monthly charges when the related parks reopened for the equivalent period the respective parks were closed. Accordingly, payments received during the closure period were recorded as deferred revenue and recognized as revenue once the respective parks reopened in 2020, which may not have necessarily reflected attendance patterns for these guests.

The Company has entered into agreements with certain external theme park, zoo and other attraction operators to jointly market and sell single and multi-use admission products. These joint products allow admission to both a Company park(s) and an external park, zoo or other attraction. The agreements with the external partners specify the allocation of revenue to Company parks from any jointly sold products. Whether the Company or the external partner sells the product, the Company’s portion of revenue is deferred until the first time the product is redeemed at one of the Company’s parks and recognized over its related use in a manner consistent with the Company’s other admission products.

Additionally, the Company barters theme park admission products and sponsorship opportunities for advertising, employee recognition awards, and various other services. The fair value of the products or services is recognized into admissions revenue and related expenses at the time of the exchange and approximates the estimated fair value of the goods or services provided or received, whichever is more readily determinable. For the years ended December 31, 2022, 2021 and 2020, amounts included within admissions revenue with an offset to either selling, general and administrative expenses or operating expenses in the accompanying consolidated statements of comprehensive income (loss) related to bartered ticket transactions were $14.8 million, $13.6 million and $4.7 million, respectively.

Food, Merchandise and Other Revenue

Food, merchandise and other revenue primarily consists of food and beverage, retail, merchandise, parking and other in-park products and also includes other miscellaneous revenue which is not significant in the periods presented. The Company recognizes revenue for food and beverage, merchandise and other in-park products when the related products or services are received by the guests. Certain admission products may also include bundled products at the time of purchase, such as food and beverage or merchandise items. The Company conducts an analysis of bundled products to identify separate distinct performance obligations that are material in the context of the contract. For those products that are determined to be distinct performance obligations and material in the context of the contract, the Company allocates a portion of the transaction price to each distinct performance obligation using each performance obligation’s standalone price. If the bundled product is related to a pass product and offered over time, revenue will be recognized over time accordingly.

See further discussion in Note 4–Revenues.

Advertising and Promotional Costs

Advertising production costs are deferred and expensed the first time the advertisement is shown. Other advertising and media costs are expensed as incurred and, for the years ended December 31, 2022, 2021 and 2020, totaled approximately $104.3 million, $81.4 million and $48.1 million, respectively, and are included in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income (loss).

Equity-Based Compensation

In accordance with ASC 718, Compensation-Stock Compensation, the Company measures the cost of employee services rendered in exchange for equity-based compensation based upon the grant date fair market value. The cost is recognized over the requisite service period, which is generally the vesting period unless service or performance conditions require otherwise. The Company recognizes equity compensation expense for its performance-vesting restricted awards ratably over the related performance period if the performance condition is probable of being achieved. If the probability of vesting related to these awards changes in a subsequent period, all equity compensation expense related to those awards that would have been recorded over the requisite service period had the awards been considered probable at the new percentage from inception, is recorded as a cumulative catch-up at such subsequent date. The Company recognizes the impact of forfeitures as they occur. The Company grants time-vesting restricted shares and units, time-vesting deferred stock units, performance-vesting restricted shares and units, and stock options. The Company uses the closing stock price on the date of grant to value its time-vesting and performance-vesting restricted share awards. The Company uses the Black-Scholes Option Pricing Model to value stock options at the date of grant.

On occasion, the Company may modify the terms or conditions of an equity award for its employees. If an award is modified, the Company evaluates the type of modification in accordance with ASC 718 to determine the appropriate accounting. See further discussion in Note 18–Equity-Based Compensation.

Leases

The Company leases land, warehouse and office space, and equipment, which are classified as either operating or finance leases. Under the provisions of ASC 842, Leases, lease liabilities and right of use assets are recognized at the lease commencement date on the basis of the present value of the future lease payments, with the right of use being adjusted by any prepaid or accrued rent, lease incentives, and initial direct costs. The lease term for each lease includes the noncancelable period plus any periods subject to an option for renewal when it is reasonably certain that the Company will exercise that option. The subsequent measurement of a lease is dependent on whether the lease is classified as an operating or finance lease. Operating leases have a straight-line expense pattern that is recognized as either operating expenses or selling, general, and administrative expenses in the consolidated statements of comprehensive income (loss). Finance leases have a front-loaded expense recognition pattern that is comprised of amortization expense and interest expense that is included in depreciation and amortization and interest expense in the consolidated statements of comprehensive income (loss). The Company initially evaluates the classification of its leases as of the lease commencement date and reevaluates the classification of its leases upon the occurrence of certain lease remeasurement events and when there is a lease modification that is not accounted for as a separate contract.

The present value of future lease payments is calculated using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate, which reflects the rate of interest it would pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. As most of the Company’s leases do not provide an implicit rate, the Company uses incremental borrowing rates based on the information available at the lease commencement date, liability remeasurement date, or lease modification date in determining the present value of the lease payments. In calculating the incremental borrowing rates, the Company considered recent ratings from credit agencies, recent trading prices on the Company’s debt, and current lease demographic information. The Company applies the incremental borrowing rates at a portfolio level based on lease terms.

In accordance with the short-term lease recognition exemption of ASC 842, the Company does not recognize on its balance sheet leases with an initial lease term of 12 months or less. Lease expense for these short-term leases is recognized on a straight-line basis over the lease term.

Some of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term from one to ten years or more. The exercise of lease renewal options is at the Company’s sole discretion and the inclusion of the renewal options in the lease term would only occur when the Company concludes it is reasonably certain of exercising the option(s). Certain leases also include options to purchase the leased property.

Certain of the Company’s lease agreements include rental payments based on a percentage of sales over contractual levels and others include rental payments adjusted periodically for inflation. These variable lease payments are typically recognized when the underlying event occurs and are included in operating expenses in the Company’s consolidated statements of comprehensive income (loss) in the same line item as the expense arising from fixed lease payments. The Company’s lease agreements do not contain any material residual value guarantees, material restrictive covenants or material variable lease costs other than those described in Note 14–Leases related to the Company’s land lease.

All long-lived assets, including right of use assets associated with leases, are reviewed for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the assets may not be recoverable. The measurement of an impairment loss to be recognized is based upon the difference between the estimated fair value and the carrying amounts of the assets. Fair value is generally determined based upon a discounted cash flow analysis.

See further discussion in Note 14–Leases.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is established for deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization is dependent on generating sufficient future taxable income or the reversal of deferred tax liabilities during the periods in which those temporary differences become deductible. Forecasted financial performance is not used as evidence until such time as the Company has cumulative pretax income for a rolling 36-month period. The Company evaluates its tax positions by determining if it is more likely than not a tax position is sustainable upon examination, based upon the technical merits of the position, before any of the benefit is recorded for financial statement purposes. The benefit is measured as the largest dollar amount of the position that is more likely than not to be sustained upon settlement. Previously recorded benefits that no longer meet the more likely than not threshold are charged to earnings in the period that the determination is made. Interest and penalties accrued related to unrecognized tax benefits are charged to the provision for (benefit from) income taxes in the accompanying consolidated statements of comprehensive income (loss). See further discussion in Note 13–Income Taxes.

Contingencies

The Company accounts for contingencies in accordance with ASC 450, Contingencies. For loss contingencies, such as potential legal settlements, the Company records an estimated loss when payment is considered probable and the amount of loss is reasonably estimable. In assessing loss contingencies related to legal proceedings that are pending against the Company, the Company evaluates the perceived merits of the legal proceedings as well as the perceived merits of the amount of relief sought or expected to be sought therein. If a loss is considered probable but the best estimate of the loss can only be identified within a range and no specific amount within that range is more likely, then the minimum of the range is accrued. Legal and related professional services costs to defend litigation are expensed as incurred. Insurance recoveries related to potential claims are recognized up to the amount of the recorded liability when coverage is confirmed and the estimated recoveries are probable of payment. These recoveries are not netted against the related liabilities for financial statement presentation. Additionally, for any potential gain contingencies, the Company does not recognize the gain until the period that all contingencies have been resolved and the amounts are realizable. See further discussion in Note 15–Commitments and Contingencies.

Fair Value Measurements

Fair value is a market-based measurement, not an entity-specific measurement and is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. An entity is permitted to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to use the fair value option for any of its financial assets and financial liabilities that are not already recorded at fair value. Carrying values of financial instruments classified as current assets and current liabilities approximate fair value, due to their short-term nature.

Fair Value Hierarchy—As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity. Fair value is determined for assets and liabilities, based upon significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

Level 1—Quoted prices for identical instruments in active markets.

Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable and include situations where there is little, if any, market activity for the asset or liability.

Determination of Fair Value—If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest and currency rates. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. See further discussion in Note 16–Fair Value Measurements.

Segment Reporting

The Company maintains discrete financial information for each of its twelve theme parks, which is used by the Chief Operating Decision Maker (“CODM”), as a basis for allocating resources and assessing performance. Each theme park has been identified as an operating segment and meets the criteria for aggregation due to similar economic characteristics. In addition, all of the theme parks provide similar products and services and share similar processes for delivering services. The theme parks have a high degree of similarity in the workforces and target similar consumer groups. Accordingly, based on these economic and operational similarities and the way the CODM monitors and makes decisions affecting the operations, the Company has concluded that its operating segments may be aggregated and that it has one reportable segment.

Derivative Instruments and Hedging Activities

ASC 815, Derivatives and Hedging, provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (i) how and why an entity uses derivative instruments, (ii) how the entity accounts for derivative instruments and related hedged items, and (iii) how derivative instruments and related hedged items affect an entity’s financial position, results of operations and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of, and gains and losses on, derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.

As required by ASC 815, the Company records all derivatives, if any, on the balance sheet at fair value as either assets or liabilities. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the changes in fair value of the derivative contract are recorded in accumulated other comprehensive income (loss), net of taxes, and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings.

Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. See further discussion in Note 12–Derivative Instruments and Hedging Activities.
v3.22.4
Recent Accounting Pronouncements
 12 Months Ended
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements

3. RECENT ACCOUNTING PRONOUNCEMENTS

The Company reviews new accounting pronouncements as they are issued or proposed by the Financial Accounting Standards Board (“FASB”). There are no recent accounting pronouncements or recently implemented accounting standards that are expected to have a material impact on the Company’s consolidated financial statements or disclosures.
v3.22.4
Revenues
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenues

4. REVENUES

Deferred revenue primarily includes revenue associated with pass products, admission or in-park products or services with a future intended use date and contract liability balances related to licensing and international agreements collected in advance of the Company satisfying its performance obligations and is expected to be recognized in future periods. At December 31, 2022 and 2021, $14.2 million and $14.5 million, respectively, is included in other liabilities in the accompanying consolidated balance sheets related to the long-term portion of deferred revenue, which primarily relates to the Company’s international agreement, as discussed in the following section.

The following table reflects the Company’s deferred revenue balance as of December 31, 2022 and 2021:

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Deferred revenue, including long-term portion

 

$

183,772

 

 

$

169,333

 

Less: Deferred revenue, long-term portion, included in other liabilities

 

 

14,237

 

 

 

14,540

 

Deferred revenue, short-term portion

 

$

169,535

 

 

$

154,793

 

The Company estimates substantially all of the deferred revenue, short term portion, balance outstanding as of December 31, 2021 was recognized as revenue during the twelve months ended December 31, 2022. For certain admission products, the Company estimated timing of redemption using average historical redemption rates.

International Agreements

The Company has previously received $10.0 million in deferred revenue which is recorded in other liabilities related to a nonrefundable payment received from a partner in connection with a project in the Middle East to provide certain services pertaining to the planning and design of SeaWorld Abu Dhabi, a marine life theme park on Yas Island (the “Middle East Project”), with funding received expected to offset internal expenses. The Middle East Project is on track with the park expected to open in 2023. The Company also receives additional funds from its partner related to agreed-upon services and reimbursements of costs incurred by the Company on behalf of the Middle East Project (the “Middle East Services Agreements”).

Revenue and expenses associated with the Middle East Project will begin to be recognized when substantially all the services have been performed which is anticipated to occur in 2023, when SeaWorld Abu Dhabi is expected to open. Revenue and expenses associated with the Middle East Services Agreements will be recognized upon completion of the respective performance obligations.

As a result of the Middle East Project, approximately $0.5 million of costs incurred by the Company are recorded in prepaid expenses and other current assets as of December 31, 2022 and approximately $11.2 million, $8.4 million and $5.9 million of other related costs incurred are recorded in other assets in the accompanying consolidated balance sheets as of December 31, 2022, 2021, and 2020, respectively. Separately, deferred revenue of approximately $0.6 million is recorded in deferred revenue as of December 31, 2022 and approximately $14.2 million, $12.5 million and $11.9 million of long-term deferred revenue is recorded in other liabilities in the accompanying consolidated balance sheets as of December 31, 2022, 2021 and 2020, respectively, related to the Middle East Project, which includes the $10.0 million nonrefundable payment previously discussed for each period.

As a result of the Middle East Services Agreements, approximately $2.0 million of costs incurred by the Company are recorded in prepaid expenses and other current assets as of December 31, 2022 and approximately $1.2 million of costs are recorded in other assets as of December 31, 2021 in the accompanying consolidated balance sheets. Separately, deferred revenue of approximately $5.1 million is recorded in deferred revenue as of December 31, 2022 and approximately $2.0 million is recorded in other liabilities as of December 31, 2021 in the accompanying consolidated balance sheets.
v3.22.4
Earnings (Loss) Per Share
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

5. EARNINGS (LOSS) PER SHARE

Earnings (loss) per share is computed as follows:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

Net
Income

 

 

Shares

 

 

Per
Share
Amount

 

 

Net
Income

 

 

Shares

 

 

Per
Share
Amount

 

 

Net
Loss

 

 

Shares

 

 

Per
Share
Amount

 

 

 

(In thousands, except per share amounts)

 

Basic earnings (loss) per share

 

$

291,190

 

 

 

69,607

 

 

$

4.18

 

 

$

256,513

 

 

 

78,302

 

 

$

3.28

 

 

$

(312,321

)

 

 

78,194

 

 

$

(3.99

)

Effect of dilutive
   incentive-based awards

 

 

 

 

 

673

 

 

 

 

 

 

 

 

 

1,273

 

 

 

 

 

 

 

 

 

—

 

 

 

 

Diluted earnings (loss) per share

 

$

291,190

 

 

 

70,280

 

 

$

4.14

 

 

$

256,513

 

 

 

79,575

 

 

$

3.22

 

 

$

(312,321

)

 

 

78,194

 

 

$

(3.99

)

 

In accordance with ASC 260, Earnings Per Share, basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period (excluding treasury stock and unvested restricted stock awards). Unvested restricted stock awards are eligible to receive dividends, if any; however, dividend rights will be forfeited if the award does not vest. Accordingly, only vested shares of formerly restricted stock are included in the calculation of basic earnings (loss) per share. The weighted average number of repurchased shares during the period, if any, which are held as treasury stock, are excluded from shares of common stock outstanding.

Diluted earnings (loss) per share is determined using the treasury stock method based on the dilutive effect of certain unvested restricted stock awards and certain shares of common stock that are issuable upon exercise of stock options. During the years ended December 31, 2022 and 2021, there were approximately 277,000 and 146,000 anti-dilutive shares of common stock excluded from the computation of diluted earnings per share, respectively. During the year ended December 31, 2020, there were approximately 2,253,000 potentially dilutive shares of common stock excluded from the computation of diluted loss per share as their effect would have been anti-dilutive due to the Company’s net loss in the period.

The Company’s outstanding performance-vesting restricted stock awards are considered contingently issuable shares and are excluded from the calculation of diluted earnings per share until the performance measure criteria is met as of the end of the reporting period. For the years ended December 31, 2022 and 2021, approximately 236,000 and 352,000 performance-vesting restricted stock awards had met their performance criteria for their respective performance years as of the end of the reporting periods, respectively, and are therefore included in the calculation of diluted earnings per share. See further discussion in Note 18–Equity-Based Compensation.
v3.22.4
Inventories
 12 Months Ended
Dec. 31, 2022
Inventory Disclosure [Abstract]  
Inventories

6. INVENTORIES

Inventories as of December 31, 2022 and 2021 consisted of the following:

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Merchandise

 

$

49,422

 

 

$

23,960

 

Food and beverage

 

 

5,768

 

 

 

5,518

 

Total inventories

 

$

55,190

 

 

$

29,478

 

As of December 31, 2022, the increase in merchandise inventory was primarily due to a combination of significant inflationary pressures and increased freight costs along with increased volume purchases and the timing of order deliveries as compared to December 31, 2021.
v3.22.4
Prepaid Expenses and Other Current Assets
 12 Months Ended
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets

7. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets as of December 31, 2022 and 2021 consisted of the following:

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Deferred or prepaid insurance

 

$

6,797

 

 

$

5,319

 

Prepaid marketing and advertising costs

 

 

1,046

 

 

 

824

 

Other

 

 

20,417

 

 

 

11,120

 

Total prepaid expenses and other current assets

 

$

28,260

 

 

$

17,263

 

As of December 31, 2022, prepaid expenses and other current assets includes approximately $3.1 million in advanced funds and approximately $2.5 million in costs incurred related to the Company's international services agreements. See further discussion in Note 1–Summary of Significant Accounting Policies and Note 4–Revenues.
v3.22.4
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net

8. PROPERTY AND EQUIPMENT, NET

The components of property and equipment, net as of December 31, 2022 and 2021, consisted of the following:

 

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Land

 

$

286,200

 

 

$

286,200

 

Land improvements

 

 

452,276

 

 

 

417,931

 

Buildings

 

 

814,729

 

 

 

753,209

 

Rides, attractions and equipment

 

 

1,736,206

 

 

 

1,665,122

 

Animals

 

 

141,083

 

 

 

142,017

 

Construction in progress

 

 

145,598

 

 

 

120,829

 

Less: accumulated depreciation

 

 

(1,869,413

)

 

 

(1,740,144

)

Total property and equipment, net

 

$

1,706,679

 

 

$

1,645,164

 

Depreciation expense was approximately $151.5 million, $146.5 million, and $148.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.

For the years ended December 31, 2022, 2021 and 2020, the Company recorded approximately $7.2 million, $6.6 million and $6.7 million, respectively, in fixed asset write-offs, which is included in operating expenses in the accompanying consolidated statement of comprehensive income (loss).

See Note 1–Description of the Business, Impact of Global COVID-19 Pandemic, for further details regarding proactive measures the Company took starting in March 2020 relating to its capital expenditures including delaying the opening of certain new rides.
v3.22.4
Goodwill and Trade Names/Trademarks, Net
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Trade Names/Trademarks, Net

9. GOODWILL AND TRADE NAMES/TRADEMARKS, NET

Goodwill, Net

Goodwill, net, at December 31, 2022 and 2021 relates to the Company’s Discovery Cove reporting unit. The Company performed an annual qualitative assessment in the fourth quarter of 2022 and 2021 and concluded that further evaluation was unnecessary.

Trade Names/Trademarks, Net

During the fourth quarter of 2022 and 2021, the Company performed a qualitative assessment for its indefinite-lived intangible assets and concluded that further evaluation was unnecessary.

Trade names/trademarks, net, at December 31, 2022 and 2021, consisted of the following:

 

 

 

Weighted

Average

Amortization

Period

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

 

 

 

(In thousands)

 

Trade names/trademarks - indefinite lives

 

 

 

$

157,000

 

 

$

—

 

 

$

157,000

 

Trade names/trademarks - finite lives

 

9.3 years

 

 

12,900

 

 

 

12,900

 

 

 

—

 

Total trade names/trademarks, net

 

 

 

$

169,900

 

 

$

12,900

 

 

$

157,000

 
v3.22.4
Other Accrued Liabilities
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Other Accrued Liabilities

10. OTHER ACCRUED LIABILITIES

Other accrued liabilities as of December 31, 2022 and 2021, consisted of the following:

 

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Accrued interest

 

$

18,483

 

 

$

17,372

 

Accrued taxes

 

 

3,284

 

 

 

784

 

Self-insurance reserve

 

 

8,608

 

 

 

8,210

 

Other

 

 

16,539

 

 

 

19,445

 

Total other accrued liabilities

 

$

46,914

 

 

$

45,811

 

 

As of December 31, 2022 and 2021, other accrued liabilities above includes approximately $10.9 million related to certain contractual liabilities arising from the temporary COVID-19 park closures.

As of December 31, 2022 and 2021, accrued interest above primarily relates to interest associated with the Company’s senior notes issued in August 2021, for which interest is paid bi-annually in February and August and the first-priority senior secured notes issued in April 2020, for which interest is paid bi-annually in November and May. See further discussion in Note 11–Long-Term Debt.
v3.22.4
Long-Term Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Long-Term Debt

11. LONG-TERM DEBT

Long-term debt, net, as of December 31, 2022 and 2021 consisted of the following:

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Term B Loans (effective interest rate of 7.44% and 3.50% at December 31, 2022 and 2021, respectively)

 

$

1,185,000

 

 

$

1,197,000

 

Senior Notes due 2029 (interest rate of 5.25%)

 

 

725,000

 

 

 

725,000

 

First-Priority Senior Secured Notes due 2025 (interest rate of 8.75%)

 

 

227,500

 

 

 

227,500

 

Total long-term debt

 

 

2,137,500

 

 

 

2,149,500

 

Less: unamortized discounts and debt issuance costs

 

 

(26,441

)

 

 

(32,665

)

Less: current maturities

 

 

(12,000

)

 

 

(12,000

)

Total long-term debt, net

 

$

2,099,059

 

 

$

2,104,835

 

Refinancing Transactions

On August 25, 2021 (the “Closing Date”), SEA entered into a Restatement Agreement (the “Restatement Agreement”) pursuant to which SEA amended and restated its then existing senior secured credit agreement dated as of December 1, 2009 (as amended, restated, supplemented or otherwise modified from time to time, and the senior secured credit facilities thereunder (the “Existing Secured Credit Facilities”), and, as amended and restated by the Restatement Agreement (the “Amended and Restated Credit Agreement”).

The Amended and Restated Credit Agreement provides for senior secured financing of up to $1,585.0 million, consisting of:

(i)
a first lien term loan facility (the “Term Loan Facility” and the loans thereunder, the “Term B Loans”), in an aggregate principal amount of $1,200.0 million which was fully drawn on the Closing Date. The Term Loan Facility will mature on August 25, 2028; and
(ii)
a first lien revolving credit facility (the “Revolving Credit Facility” (and the loans thereunder, the “Revolving Loans”) and, together with the Term Loan Facility, the “Senior Secured Credit Facilities”), in an aggregate committed principal amount of $385.0 million, including both a letter of credit sub-facility and a swingline loan sub-facility. The Revolving Credit Facility will mature on August 25, 2026. On June 9, 2022, SEA entered into an incremental amendment to the Amended and Restated Credit Agreement to increase the revolving facility commitments under the Revolving Credit Facility by $5.0 million bringing the aggregate committed principal amount to $390.0 million as of such date.

Also on the Closing Date, SEA completed a private offering of $725.0 million aggregate principal amount of 5.250% unsecured senior notes due 2029 (the “Senior Notes”). See Senior Notes section which follows for more details.

The Company used proceeds of the Term B Loans drawn on the Closing Date, together with the proceeds from the offering of the Senior Notes and cash on hand, to fully redeem the remaining $400.0 million of SEA’s then outstanding 9.500% second-priority senior secured notes due 2025 (the “Second-Priority Senior Secured Notes”) (the "Full Redemption"), to refinance the SEA’s Existing Secured Credit Facilities, and to pay related expenses of the offering and refinancing (collectively, the “Refinancing Transactions”). As a result of the Refinancing Transactions, on the Closing Date, SEA terminated its Existing Secured Credit Facilities and associated Term B-5 Loans and repaid all of its related outstanding obligations in respect of principal, interest and fees.

Prior to the Refinancing Transactions, on July 14, 2021, SEA completed a redemption of $50.0 million of its then outstanding Second-Priority Senior Secured Notes and separately on August 25, 2021, SEA completed another redemption of $50.0 million of its then outstanding Second-Priority Senior Secured Notes (collectively, the “Partial Redemptions”). Pursuant to the Partial Redemptions, the aggregate principal amount of the Second-Priority Senior Secured Notes were redeemed at a price equal to 103.000% of the respective principal amounts thereof, plus accrued and unpaid interest thereon to, but excluding, the respective redemption dates. In connection with the Refinancing Transactions, SEA also redeemed the remaining $400.0 million of its Second-Priority Senior Secured Notes (the “Full Redemption”). Pursuant to the Full Redemption, all of the aggregate principal amount of the Second-Priority Senior Secured Notes were redeemed at a price equal to the sum of (a) 100.000% of the outstanding principal amount of the Second-Priority Senior Secured Notes redeemed pursuant to the Full Redemption plus (b) approximately $34.3 million related to the Applicable Premium (as defined in the respective indenture), which is included in loss on early extinguishment of debt and write-off of discounts and debt issuance costs for the year ended December 31, 2021, plus (c) accrued and unpaid interest thereon to, but excluding, the redemption date.

Discounts and Debt Issuance Costs

In connection with the Refinancing Transactions, SEA recorded a discount of $12.0 million and debt issuance costs of $12.7 million, of which $2.8 million were paid directly to lenders, during the year ended December 31, 2021. Additionally, SEA wrote-off debt issuance costs and discounts of $21.5 million which is included in loss on early extinguishment of debt and write-off of discounts and debt issuance costs in the accompanying consolidated statement of comprehensive income (loss) for the year ended December 31, 2021.

In connection with the issuance of the First-Priority Senior Secured Notes and Second-Priority Senior Secured Notes, and as a result of certain amendments in 2020 to SEA’s then existing senior secured credit agreement, as previously disclosed, SEA recorded discounts and fees of approximately $21.9 million, of which approximately $13.8 million were paid directly to lenders, during the year ended December 31, 2020.

Senior Secured Credit Facilities

Borrowings under the Term B Loans bear interest at a fluctuating rate per annum equal to, at the Company’s option, (i) a base rate equal to the higher of (a) the federal funds rate plus 1/2 of 1%, (b) the rate of interest quoted in the print edition of the Wall Street Journal, Money Rates Section as the prime rate as in effect from time to time and (c) one-month Adjusted LIBOR plus 1% per annum (provided that in no event shall such ABR rate with respect to the Term B Loans be less than 1.50% per annum) (“ABR”), in each case, plus an applicable margin of 2.00% or (ii) a LIBOR rate for the applicable interest period (provided that in no event shall such LIBOR rate with respect to the Term B Loans be less than 0.50% per annum) (“LIBOR”) plus an applicable margin of 3.00%.

Borrowings of the Revolving Loans bear interest at a fluctuating rate per annum equal to, at the Company’s option, (i) ABR (provided that in no event shall such ABR rate with respect to the Revolving Loans be less than 1.00% per annum) plus an applicable margin equal to 1.75% or (ii) LIBOR (provided that in no event shall such LIBOR rate with respect to the Revolving Loans be less than 0.00%) plus an applicable margin of 2.75%. The applicable margin for borrowings of Revolving Loans are subject to one 25 basis point step-down upon achievement by the Company of certain corporate credit ratings, which was achieved during 2022.

In addition to paying interest on the outstanding principal under the Senior Secured Credit Facilities, the Company is required to pay a commitment fee equal to 0.50% per annum to the lenders under the Revolving Credit Facility in respect of the unutilized commitments thereunder. The Company will also be required to pay customary agency fees as well as letter of credit participation fees computed at a rate per annum equal to the applicable margin for LIBOR rate borrowings on the dollar equivalent of the daily stated amount of outstanding letters of credit, plus such letter of credit issuer’s customary documentary and processing fees and charges and a fronting fee computed at a rate equal to 0.125% per annum on the daily stated amount of each letter of credit.

The Senior Secured Credit Facilities require scheduled amortization payments on the term loans in quarterly amounts equal to 0.25% of the original principal amount of the Term B Loans, payable quarterly, with the balance to be paid at maturity.

In addition, the Senior Secured Credit Facilities require the Company to prepay outstanding term loan borrowings, subject to certain exceptions, with:

-
beginning with the fiscal year ending on December 31, 2022, 50% (which percentage will be reduced to 25% and 0% if the Company satisfies certain net first lien senior secured leverage ratios) of annual excess cash flow, as defined under the Senior Secured Credit Facilities;
-
100% of the net cash proceeds of all non-ordinary course asset sales or other non-ordinary course dispositions of property, in each case subject to certain exceptions and reinvestment rights;
-
100% of the net cash proceeds of any issuance or incurrence of debt, other than proceeds from debt permitted under the Senior Secured Credit Facilities.

The Company may voluntarily repay outstanding loans under the Senior Secured Credit Facilities at any time, without prepayment premium or penalty, except in connection with a repricing event in respect of the term loans as described below, subject to customary “breakage” costs with respect to LIBOR rate loans.

All borrowings under the Revolving Credit Facility are subject to the satisfaction of customary conditions, including the absence of a default or event of default and the accuracy of representations and warranties in all material respects.

All obligations under the Senior Secured Credit Facilities are unconditionally guaranteed by the Company on a limited-recourse basis and each of SEA’s existing and future direct and indirect wholly owned material domestic subsidiaries, subject to certain exceptions. The obligations are secured by a pledge of SEA’s capital stock directly held by the Company and substantially all of SEA’s assets and those of each guarantor (other than the Company), including a pledge of the capital stock of all entities directly held by SEA or the guarantors, in each case subject to exceptions. Such security interests consist of a first-priority lien with respect to the collateral.

As of December 31, 2022, SEA had approximately $18.4 million of outstanding letters of credit, leaving approximately $371.6 million available under the Revolving Credit Facility, which was not drawn upon as of December 31, 2022. Subsequent to December 31, 2022, SEA borrowed $20.0 million on the Revolving Credit Facility for general working capital purposes.

Senior Notes

The Senior Notes will mature on August 15, 2029. Interest on the Senior Notes will accrue at 5.250% per annum and will be paid semi-annually, in arrears on February 15 and August 15 of each year.

On or after August 15, 2024, SEA may redeem the Senior Notes, in whole at any time or in part from time to time, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if redeemed during the 12-month period commencing on August 15 of the years as follows: (i) in 2024 at 102.625%; (ii) in 2025 at 101.313%; and (iii) in 2026 and thereafter at 100%. In addition, prior to August 15, 2024, SEA may redeem the Senior Notes at its option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the Senior Notes redeemed, plus the “Applicable Premium” and accrued and unpaid interest, if any, to, but excluding, the redemption date. Notwithstanding the foregoing, subject to the provisions set forth in the Indenture, at any time and from time to time on or prior to August 15, 2024, SEA may redeem in the aggregate up to 40% of the original aggregate principal amount of the Senior Notes (calculated after giving effect to any issuance of additional Senior Notes) in an aggregate amount equal to the net cash proceeds of one or more equity offerings at a redemption price equal to 105.250%, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Additionally, upon the occurrence of specified change of control events, each holder will have the right to require SEA to repurchase all or any part of such holder’s notes at a purchase price in cash equal to 101%.

SEA’s obligations under the Senior Notes and related indenture are guaranteed, jointly and severally, on a senior secured basis, by the Guarantors, as defined, in accordance with the provisions of the indenture.

First-Priority Senior Secured Notes

On April 30, 2020, SEA closed on a private offering of $227.5 million aggregate principal amount of 8.750% first-priority senior secured notes (the “First-Priority Senior Secured Notes”) which mature on May 1, 2025 and have interest payment dates of May 1 and November 1. SEA may redeem the First-Priority Senior Secured Notes at its option, in whole at any time or in part from time to time, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if redeemed during the 12-month period commencing on May 1 of the years as follows: (i) in 2022 at 104.375%; (ii) in 2023 at 102.188%; and (iii) in 2024 and thereafter at 100%. SEA may also redeem in the aggregate (at a redemption price expressed as a percentage of principal amount thereof): (i) 100% of the First-Priority Senior Secured Notes after certain events constituting a change of control at a redemption price of 101%, plus accrued and unpaid interest, if any, to, but excluding, the redemption date and (ii) up to 40% of the original aggregate principal amount of the First-Priority Senior Secured Notes with amounts equal to the net cash proceeds of certain equity offerings at a redemption price of 108.750%, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

The First-Priority Senior Secured Notes are fully and unconditionally guaranteed by the Company, any subsidiary of the Company that directly or indirectly owns 100% of the issued and outstanding equity interests of SEA, and subject to certain exceptions, each of SEA’s subsidiaries that guarantees SEA’s existing senior secured credit facilities.

Second-Priority Senior Secured Notes

On August 5, 2020, SEA closed on a private offering of $500.0 million aggregate principal amount of Second-Priority Senior Secured Notes. Net of expenses related to the offering of the Second-Priority Senior Secured Notes and an amendment to its then existing senior secured credit agreement, the Company used a portion of the proceeds from the issuance of the Second-Priority Senior Secured Notes to repay the then outstanding borrowings of $311.0 million under the Revolving Credit Facility.

The Second-Priority Senior Secured Notes were scheduled to mature on August 1, 2025 and had interest payment dates of February 1 and August 1. See additional discussion in the preceding Refinancing Transactions section regarding the full redemption of the Second-Priority Senior Secured Notes in 2021.

Restrictive Covenants

The Amended and Restated Credit Agreement governing the Senior Secured Credit Facilities and the indentures governing the Senior Notes and First-Priority Senior Secured Notes (collectively, the “Debt Agreements”), contain covenants that limit the ability of the Company, SEA and its restricted subsidiaries to, among other things: (i) incur additional indebtedness or issue certain preferred shares; (ii) make dividend payments on or make other distributions in respect of their capital stock or make other restricted payments; (iii) make certain investments; (iv) sell certain assets; (v) create or permit to exist dividend and/or payment restrictions affecting their restricted subsidiaries; (vi) create liens on assets; (vii) consolidate, merge, sell or otherwise dispose of all or substantially all of their assets; and (viii) enter into certain transactions with their affiliates. These covenants are subject to a number of important limitations and exceptions and are based, in part on the Company’s ability to satisfy certain tests and engage in certain transactions based on Covenant Adjusted EBITDA, as defined in the related Debt Agreements. Covenant Adjusted EBITDA includes certain adjustments permitted under the relevant agreements, including but not limited to estimated cost savings, recruiting and retention costs, public company compliance costs, litigation and arbitration costs and other costs and adjustments as permitted under the Debt Agreements.

The Debt Agreements contain certain customary events of default, including relating to a change of control. If an event of default occurs, the lenders under the Debt Agreements will be entitled to take various actions, including the acceleration of amounts due under the Debt Agreements and all actions permitted to be taken by a secured creditor in respect of the collateral securing the Debt Agreements.

The Revolving Credit Facility requires that the Company, commencing as of the last day of the first full fiscal quarter after the Closing Date and subject to a testing threshold, comply on a quarterly basis with a maximum net first lien senior secured leverage ratio of 6.25 to 1.00. The testing threshold will be satisfied (and therefore the covenant must be complied with at the end of such quarter) if the aggregate amount of funded loans and issued letters of credit (excluding up to $30.0 million of undrawn letters of credit under the Revolving Credit Facility and letters of credit that are cash collateralized) under the Revolving Credit Facility on such date exceeds an amount equal to 35% of the then-outstanding commitments under the Revolving Credit Facility.

The Debt Agreements permit an unlimited capacity for restricted payments if the net total leverage ratio on a pro forma basis does not exceed 4.25 to 1.00 after giving effect to the payment of any such restricted payment. As of December 31, 2022, the net total leverage ratio as calculated under the Debt Agreements was 2.78 to 1.00.

As of December 31, 2022, SEA was in compliance with all covenants contained in the documents governing the Debt Agreements.

Long-term debt at December 31, 2022, is repayable as follows and does not include the impact of any future voluntary prepayments:

 

Years Ending December 31,

 

(In thousands)

 

2023

 

$

12,000

 

2024

 

 

12,000

 

2025

 

 

239,500

 

2026

 

 

12,000

 

2027

 

 

12,000

 

Thereafter

 

 

1,850,000

 

Total

 

$

2,137,500

 

Interest Rate Swap Agreements

The Company previously had five interest rate swap agreements (the “Interest Rate Swap Agreements”) which effectively fixed the interest rate on the LIBOR-indexed interest payments associated with $1.0 billion of SEA’s outstanding long-term debt. The Interest Rate Swap Agreements expired on May 14, 2020.

SEA designated the Interest Rate Swap Agreements above as qualifying cash flow hedge accounting relationships as further discussed in Note 12–Derivative Instruments and Hedging Activities which follows.

Cash paid for interest relating to the Senior Secured Credit Facilities, the Senior Notes, the First-Priority Senior Secured Notes, the Second-Priority Senior Secured Notes and the Interest Rate Swap Agreements, net of amounts capitalized, as applicable, was $110.9 million, $116.1 million and $73.7 million during the years ended December 31, 2022, 2021 and 2020, respectively. See Note 10–Other Accrued Liabilities for accrued interest included in the accompanying consolidated balance sheets as of December 31, 2022 and 2021.
v3.22.4
Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities

12. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and at times through the use of derivative financial instruments. Specifically, the Company has previously entered into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments, if any, are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company does not speculate using derivative instruments.

In May 2020, the Company’s Interest Rate Swap Agreements expired. As such, the Company did not have any derivative instruments outstanding as of December 31, 2022 and 2021.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives were to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily used interest rate swaps at times as part of its interest rate risk management strategy. During the year ended December 31, 2020, such derivatives were used to hedge a portion of the variable cash flows associated with existing variable-rate debt.

The Interest Rate Swap Agreements were designated as cash flow hedges of interest rate risk. The changes in the fair value of derivatives designated and that qualify as cash flow hedges were recorded in accumulated other comprehensive income (loss) and were subsequently reclassified into earnings in the period that the hedged forecasted transaction affected earnings. Amounts reported in accumulated other comprehensive income (loss) related to derivatives were reclassified to interest expense as interest payments were made on the Company’s variable-rate debt.

Tabular Disclosure of the Effect of Derivative Instruments on the Statements of Comprehensive Income (Loss)

The table below presents the pre-tax effect of the Company’s derivative financial instruments in the accompanying consolidated statements of comprehensive income (loss) for the year ended December 31, 2020:

 

 

Year Ended December 31,

 

 

 

2020

 

 

 

(In thousands)

 

Derivatives in Cash Flow Hedging Relationships:

 

 

 

Loss recognized in accumulated other comprehensive income (loss)

 

$

(370

)

Amounts reclassified from accumulated other comprehensive income (loss) to interest expense

 

$

2,501

 

 

Changes in Accumulated Other Comprehensive Income (Loss)

The following table reflects the changes in accumulated other comprehensive income (loss), net of tax, for the year ended December 31, 2020:

Accumulated other comprehensive income (loss) (In thousands):

 

 

 

 

(Losses) Gains on
Cash Flow Hedges

 

Accumulated other comprehensive loss at December 31, 2019

 

 

 

 

 

(1,559

)

Other comprehensive loss before reclassifications

 

 

(271

)

 

 

 

Amounts reclassified from accumulated other comprehensive loss to interest expense

 

 

1,830

 

 

 

 

Change in other comprehensive income (loss), net of tax

 

 

 

 

 

1,559

 

Accumulated other comprehensive income (loss) at December 31, 2020

 

 

 

 

$

—

 
v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

13. INCOME TAXES

For the years ended December 31, 2022, 2021 and 2020, the provision for (benefit from) income taxes is comprised of the following:

 

 

2022

 

 

2021

 

 

2020

 

Current income tax provision

 

(In thousands)

 

Federal

 

$

(31

)

 

$

(31

)

 

$

(136

)

State

 

 

3,427

 

 

 

3,984

 

 

 

1,020

 

Foreign

 

 

—

 

 

 

—

 

 

 

5

 

Total current income tax provision

 

 

3,396

 

 

 

3,953

 

 

 

889

 

Deferred income tax provision (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

 

71,642

 

 

 

345

 

 

 

(19,718

)

State

 

 

23,845

 

 

 

(4,462

)

 

 

(11,696

)

Total deferred income tax provision (benefit)

 

 

95,487

 

 

 

(4,117

)

 

 

(31,414

)

Total income tax provision (benefit)

 

$

98,883

 

 

$

(164

)

 

$

(30,525

)

 

The deferred income tax provision (benefit) represents the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Cash paid for income taxes totaled $1.6 million, $5.9 million and $0.5 million, for the years ended December 31, 2022, 2021 and 2020, respectively.

The components of deferred income tax assets and liabilities as of December 31, 2022 and 2021 are as follows:

 

 

 

2022

 

 

2021

 

Deferred income tax assets:

 

(In thousands)

 

Acquisition and debt related costs

 

$

3,270

 

 

$

4,292

 

Net operating losses

 

 

156,176

 

 

 

199,656

 

Goodwill impairment

 

 

53,684

 

 

 

53,677

 

Self-insurance

 

 

8,816

 

 

 

7,220

 

Deferred revenue

 

 

2,520

 

 

 

2,878

 

Restricted stock

 

 

7,911

 

 

 

9,509

 

Tax credits

 

 

11,847

 

 

 

10,718

 

Legal settlements

 

 

—

 

 

 

855

 

Lease obligations

 

 

29,117

 

 

 

29,410

 

Interest limitation

 

 

10,120

 

 

 

562

 

Charitable contributions

 

 

2,122

 

 

 

3,243

 

Other

 

 

5,220

 

 

 

6,115

 

Total deferred income tax assets

 

 

290,803

 

 

 

328,135

 

Valuation allowance

 

 

(4,601

)

 

 

(4,775

)

Net deferred tax assets

 

 

286,202

 

 

 

323,360

 

Deferred income tax liabilities:

 

 

 

 

 

 

Property and equipment

 

 

(245,396

)

 

 

(194,739

)

Amortization - Goodwill

 

 

(60,230

)

 

 

(55,827

)

Amortization - Other intangibles

 

 

(35,666

)

 

 

(29,482

)

Right of use assets

 

 

(28,568

)

 

 

(29,004

)

Other

 

 

(637

)

 

 

(3,116

)

Total deferred income tax liabilities

 

 

(370,497

)

 

 

(312,168

)

Net deferred income tax (liabilities) assets

 

$

(84,295

)

 

$

11,192

 

The Company files federal, state and provincial income tax returns in various jurisdictions with varying statute of limitation expiration dates. Under the tax statute of limitations applicable to the Internal Revenue Code of 1986, as amended (the “Code”), the Company is no longer subject to U.S. federal income tax examinations by the Internal Revenue Service for years before 2018. However, because the Company is carrying forward income tax attributes, such as net operating losses and tax credits from 2009 and subsequent years, these attributes can still be audited when utilized on returns filed in the future. The Company has determined that there are no positions currently taken that would rise to a level requiring an amount to be recorded or disclosed as an unrecognized tax benefit. If such positions do arise, it is the Company’s intent that any interest or penalty amount related to such positions will be recorded as a component of the income tax provision in the applicable period.

The Company has federal tax net operating loss carryforwards of approximately $627.5 million as of December 31, 2022 and state net operating loss carryforwards spread across various jurisdictions with a combined total of approximately $634.5 million as of December 31, 2022. These net operating loss carryforwards, if not used to reduce taxable income in future periods, will begin to expire in 2030 and 2029, for federal and state tax purposes, respectively.

Realization of the deferred income tax assets, primarily arising from these net operating loss carryforwards and charitable contribution carryforwards, is dependent upon generating sufficient taxable income prior to expiration of the carryforwards, which may include the reversal of deferred tax liability components.

Through December 31, 2020, approximately $65.6 million of valuation allowances were established for some of the Company's deferred tax assets, which, based on its analysis at the time, the Company believed did not meet the “more likely than not” criteria and would expire before being realized in future periods. Based on the Company's assessment of the realizability of its deferred tax assets during the year ended December 31, 2021, which included a review of current and forecasted financial performance as the Company was in a cumulative pretax income position, the Company believed that some of these deferred tax assets met the “more likely than not” criteria and will be realized in future periods before they expire. As a result, the Company reversed its valuation allowances by approximately $60.8 million during the year ended December 31, 2021.

As of December 31, 2021, the Company had a valuation allowance of approximately $4.8 million, net of federal tax benefit, on the Company’s deferred tax assets relating to state net operating losses, which, the Company believed did not meet the “more likely than not” criteria and would expire before being realized in future periods. As of December 31, 2022, the Company has a valuation allowance of approximately $4.6 million, net of federal tax benefit, on the deferred tax assets related to state net operating loss carryforwards. The Company’s valuation allowances, in part, rely on estimates and assumptions related to future financial performance. Given the macroeconomic environment related to the COVID-19 pandemic and the uncertainties regarding the related impact on financial performance, the Company’s valuation allowances may need to be adjusted in the future.

The Inflation Reduction Act (“IRA”) of 2022 was signed into law on August 16, 2022. This legislation includes a 15% corporate alternative minimum tax and a 1% excise tax on stock repurchases among its key tax provisions effective for years beginning after December 31, 2022. The Company is continuing to evaluate the existing guidance but does not anticipate a material impact for either of these provisions. The Company will continue to evaluate the impact of the IRA as additional information becomes available.

The reconciliation between the statutory income tax rate and the Company’s effective income tax provision (benefit) rate for the years ended December 31, 2022, 2021 and 2020, is as follows:

 

 

2022

 

 

2021

 

 

2020

 

 

 

 

Amount

 

 

%

 

 

Amount

 

 

%

 

 

Amount

 

 

%

 

 

 

 

(In thousands)

 

 

Income tax at federal statutory rates

 

$

81,915

 

 

 

21.00

 

%

$

53,833

 

 

 

21.00

 

%

$

(71,998

)

 

 

21.00

 

%

State taxes, net of federal benefit

 

 

17,103

 

 

 

4.38

 

 

 

12,070

 

 

 

4.71

 

 

 

(15,816

)

 

 

4.61

 

 

Equity-based compensation

 

 

(9,839

)

 

 

(2.52

)

 

 

(8,051

)

 

 

(3.14

)

 

 

(485

)

 

 

0.14

 

 

Tax credits

 

 

(205

)

 

 

(0.05

)

 

 

(137

)

 

 

(0.05

)

 

 

(304

)

 

 

0.09

 

 

Impact of state rate changes

 

 

4,460

 

 

 

1.14

 

 

 

(753

)

 

 

(0.29

)

 

 

(3,906

)

 

 

1.14

 

 

Officer's compensation limitation

 

 

4,612

 

 

 

1.18

 

 

 

3,437

 

 

 

1.34

 

 

 

95

 

 

 

(0.03

)

 

Valuation allowance - state

 

 

—

 

 

 

—

 

 

 

(13,756

)

 

 

(5.37

)

 

 

10,450

 

 

 

(3.05

)

 

Valuation allowance - federal

 

 

—

 

 

 

—

 

 

 

(47,061

)

 

 

(18.36

)

 

 

49,951

 

 

 

(14.57

)

 

Other

 

 

837

 

 

 

0.22

 

 

 

254

 

 

 

0.10

 

 

 

1,488

 

 

 

(0.43

)

 

Income tax provision (benefit)

 

$

98,883

 

 

 

25.35

 

%

$

(164

)

 

 

(0.06

)

%

$

(30,525

)

 

 

8.90

 

%
v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases

14. LEASES

The Company leases land, warehouse and office space, and equipment, which are classified as either operating or finance leases. The Company’s most significant lease is a long-term land lease with the City of San Diego covering approximately 190 acres, including approximately 17 acres of water in Mission Bay Park, California (the “Premises”). While there are no financial restrictions or covenants imposed by the Premises lease, there are certain operational restrictions in that the Premises must be used as a marine park facility and the Company may not operate another marine park facility within 560 miles of the City of San Diego.

The lease term for the Premises ends in June 2048 and the annual rent under the lease is variable and calculated on the basis of a specified percentage of the Company’s gross income from the Premises (the “Percentage Rent”), or the minimum yearly rent (the “Minimum Rent”), whichever is greater.

The required annual rent payments for the Premises is adjusted every three years to an amount equal to 80% of the average accounting year rent actually paid for the three previous years, with the annual minimum rent calculated as approximately $10.4 million through each of the years ended December 31, 2022, 2021 and 2020. The Company is awaiting the City of San Diego’s confirmation of the new adjusted minimum yearly rent, which will be effective as of January 1, 2023.

The annual rent payments may vary from the base rent due to a shift of seasonal performance results. Rent payments related to the Premises for the years ended December 31, 2022, 2021 and 2020 were approximately $13.6 million (including approximately $1.0 million remitted in 2022 related to 2021 and certain other fees), $11.1 million (including approximately $1.6 million remitted in 2021 related to 2020 Percentage Rent) and $0.5 million, respectively. The Company’s gross income from the Premises was significantly impacted during the year ended December 31, 2020 due to the temporary park closures, limited reopenings, modified operations and capacity restrictions resulting from the impact of the COVID-19 pandemic and related government restrictions in San Diego. Due to these factors, the Company deferred a payment of $8.3 million related to the Minimum Rent for the year ended December 31, 2020 (the “2020 Minimum Rent Payment”). As such, approximately $10.9 million and $10.8 million is included primarily in accounts payable and accrued expenses on the accompanying consolidated balance sheets as of December 31, 2022 and 2021, respectively, primarily related to the 2020 Minimum Rent Payment, the timing of the respective December rent payments, and certain accrued fees. Operating lease liabilities and long-term operating lease liabilities on the accompanying consolidated balance sheets as of December 31, 2022 and 2021 and the lease maturities as of December 31, 2022 are not adjusted for these deferred payments.

The tables below present the lease balances and their classification in the accompanying consolidated balance sheets as of December 31, 2022 and 2021:

 

 

 

 

December 31,

 

 

December 31,

 

 

 

Classification

2022

 

 

2021

 

Assets:

 

 

(In thousands)

 

Operating leases

 

Right of use assets - operating

$

130,479

 

 

$

132,217

 

Finance leases

 

Other assets, net

 

2,353

 

 

 

2,824

 

Total lease assets

 

 

$

132,832

 

 

$

135,041

 

Liabilities:

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

Operating leases

 

Operating lease liabilities

$

3,387

 

 

$

2,895

 

Finance leases

 

Other accrued liabilities

 

171

 

 

 

486

 

Noncurrent

 

 

 

 

 

 

 

Operating leases

 

Long-term operating lease liabilities

 

115,396

 

 

 

117,046

 

Finance leases

 

Other liabilities

 

2,284

 

 

 

2,453

 

Total lease liabilities

 

 

$

121,238

 

 

$

122,880

 

The table below presents the lease costs and their classification in the accompanying consolidated statements of comprehensive income (loss) for the years ended December 31, 2022, 2021 and 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

Classification

2022

 

 

2021

 

 

2020

 

 

 

 

(In thousands)

 

Operating lease cost

 

Operating expenses

$

13,177

 

 

$

13,200

 

 

$

13,966

 

Operating lease cost

 

Selling, general and administrative expenses

 

337

 

 

 

415

 

 

 

425

 

Finance lease cost

 

 

 

 

 

 

 

 

 

 

Amortization of leased assets

 

Depreciation and amortization

 

469

 

 

 

817

 

 

 

844

 

Interest on lease liabilities

 

Interest expense

 

83

 

 

 

123

 

 

 

176

 

Net lease cost

 

 

$

14,066

 

 

$

14,555

 

 

$

15,411

 

In addition to the operating lease costs above, short-term rent expense for the years ended December 31, 2022, 2021 and 2020 were approximately $4.6 million, $2.7 million and $2.1 million, respectively, and variable rent expense for the years ended December 31, 2022, 2021 and 2020 were $4.6 million, $3.8 million and $4.9 million, respectively. The short-term and variable rent expense amounts are included primarily in operating expenses in the accompanying consolidated statements of comprehensive income (loss).

The table below presents the Company’s lease maturities as of December 31, 2022:

 

 

Operating leases

 

 

 

 

Years Ending December 31,

 

Land lease

 

 

Other operating leases

 

 

Total operating leases

 

 

Finance leases

 

 

 

(In thousands)

 

2023

 

$

10,401

 

 

$

2,432

 

 

$

12,833

 

 

$

242

 

2024

 

 

10,401

 

 

 

1,825

 

 

 

12,226

 

 

 

208

 

2025

 

 

10,401

 

 

 

1,422

 

 

 

11,823

 

 

 

201

 

2026

 

 

10,401

 

 

 

1,456

 

 

 

11,857

 

 

 

200

 

2027

 

 

10,401

 

 

 

225

 

 

 

10,626

 

 

 

198

 

Thereafter

 

 

213,227

 

 

 

845

 

 

 

214,072

 

 

 

1,994

 

Total lease payments

 

 

265,232

 

 

 

8,205

 

 

 

273,437

 

 

 

3,043

 

Less: Imputed interest

 

 

(153,494

)

 

 

(1,160

)

 

 

(154,654

)

 

 

(588

)

Lease liabilities

 

$

111,738

 

 

$

7,045

 

 

$

118,783

 

 

$

2,455

 

 

 

The table below presents the weighted average remaining lease terms and applicable discount rates as of December 31, 2022 and 2021:

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

Weighted average remaining lease term (years):

 

 

 

 

 

 

Operating leases

 

 

24.27

 

 

 

25.26

 

Finance leases

 

 

15.08

 

 

 

14.23

 

Weighted average discount rate:

 

 

 

 

 

 

Operating leases

 

 

8.16

%

 

 

8.15

%

Finance leases

 

 

3.07

%

 

 

3.37

%

The table below presents the cash flows and supplemental information associated with the Company’s leasing activities for the years ended December 31, 2022, 2021 and 2020:

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(In thousands)

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

12,934

 

 

$

13,190

 

 

$

3,938

 

Operating cash flows from finance leases

 

$

83

 

 

$

123

 

 

$

176

 

Financing cash flows from finance leases

 

$

485

 

 

$

841

 

 

$

806

 

Right of use assets obtained in exchange for lease liabilities:

 

 

 

 

 

 

 

 

 

Finance leases

 

$

—

 

 

$

32

 

 

$

938

 

Operating leases

 

$

3,174

 

 

$

143

 

 

$

—

 
v3.22.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

15. COMMITMENTS AND CONTINGENCIES

The Company has commenced construction of certain new theme park attractions and other projects under contracts with various third parties. As of December 31, 2022, excluding certain amounts related to the License Agreement with Sesame Workshop as described below, additional capital payments of approximately $219.6 million are necessary to complete these projects. The majority of these projects are expected to be completed in 2023 or 2024.

License Agreements

Pursuant to a license agreement (“License Agreement”) with Sesame Workshop, the Company pays a specified annual license fee, as well as a specified royalty based on revenues earned in connection with sales of licensed products, all food and beverage items utilizing the licensed elements and any events utilizing such elements if a separate fee is paid for such event. The Company’s principal commitments pursuant to the License Agreement include, among other items, the opening of a second standalone park (“Standalone Park”) (the Company opened the Standalone Park in San Diego on March 26, 2022) and minimum annual capital and marketing thresholds. After the opening of the second Standalone Park (counting the existing Sesame Place Standalone Park in Langhorne, Pennsylvania), SEA has the option to build additional Standalone Parks in the Sesame Territory within agreed upon timelines. The License Agreement has an initial term through December 31, 2031, with an automatic additional 15-year extension plus a five-year option added to the term of the License Agreement from December 31st of the year of each new Standalone Park opening. As of December 31, 2022, the Company estimates the combined remaining liabilities and obligations for the License Agreement commitments could be up to approximately $25.0 million over the remaining term of the agreement. See further discussion concerning royalty payments for the year 2021 in the Sesame Workshop Arbitration section which follows.

ABI has granted the Company a perpetual, exclusive, worldwide, royalty-free license to use the Busch Gardens trademark and certain related domain names in connection with the operation, marketing, promotion and advertising of certain of the Company’s theme parks, as well as in connection with the production, use, distribution and sale of merchandise sold in connection with such theme parks. Under the license, the Company is required to indemnify ABI against losses related to the use of the marks.

Legal Proceedings

Securities Class Action Lawsuit

On June 14, 2018, a lawsuit captioned Highfields Capital I LP et al v. SeaWorld Entertainment, Inc. et al, was filed in the United States District Court in the Southern District of California against the Company and certain of the Company’s former and present executive officers. The plaintiffs allege, among other things, that the Defendants made false and misleading statements in violation of the federal securities laws and Florida common law, regarding the impact of the film Blackfish on SeaWorld’s business. The complaint further alleges that such statements were made to induce Plaintiffs to purchase common stock of the Company at artificially-inflated prices and that Plaintiffs suffered investment losses as a result. In May 2022, the parties reached a resolution of

the matter, and the case has now been dismissed with prejudice. The full settlement amount is not considered material and was paid in the second quarter of 2022.

Sesame Workshop Arbitration

On February 4, 2022, Sesame Workshop delivered notice asserting that the Company failed to pay an additional royalty payment for 2021 under the License Agreement. The Company had previously recorded the additional amount claimed but disputes the application and calculation of the additional payment. The amount accrued is the Company’s best estimate and, at this time, the Company does not anticipate any exposure to loss in excess of amounts accrued to be material. On June 27, 2022, Sesame Workshop initiated arbitration pursuant to the License Agreement. The Company intends to vigorously defend its position.

Other Lawsuits

In October 2018, the Company received a demand letter from attorneys representing certain former employees who claim that the terms of their respective separation agreements entitle them to certain favorable modifications made to certain performance-vesting restricted shares (the “Tranche 3 Shares”) issued under the Company’s 2013 Omnibus Incentive Plan (the “Plan”).

In November 2020, the Company filed in the Court of Chancery of the State of Delaware an action for declaratory judgment seeking a determination that the threatened claims of the former employees are time-barred and without merit. In response, the defendant former employees filed a motion to dismiss or in the alternative to stay and compel arbitration. The parties agreed to arbitrate whether the former employees’ claims are subject to arbitration. On October 21, 2021, the arbitrator determined that disputes related to the former employees’ claims for the vesting of the Tranche 3 Shares are governed by the forum selection clauses of the equity award amendments rather than the Company’s dispute resolution process and notice of the arbitrator’s decision was filed with the Court of Chancery. On August 10, 2022, the defendant former employees filed answers, affirmative defenses and counterclaims. On October 10, 2022, the Company filed motions for judgment on the pleadings and to dismiss the counterclaims. The defendant former employees opposed the motions, on November 17, 2022, and the Company filed its reply brief on December 22, 2022. In terms of potential exposure, the value of the total shares at issue for these certain former employees depends largely upon the Company’s current share price, which fluctuates daily. Approximately 300,000 shares are at issue. The Company believes that the former employees’ claims are without merit and intends to defend vigorously its positions. While there can be no assurance regarding the ultimate outcome of this matter, the Company believes that any potential loss would not be material.

On July 27, 2022, a purported class action was filed in the United States District Court for the Eastern District of Pennsylvania against the Company captioned Quinton Burns individually and Next Friend of K.B., a minor v. SeaWorld Parks & Entertainment, Inc. and SeaWorld Parks & Entertainment LLC, Civil Case No. 2:22-cv-09941. The complaint states the putative class consists of Quinton Burns and K.B. Burns and similarly situated Black people. Plaintiffs then filed an amended complaint adding an additional seven adult and seven minor class representative plaintiffs in which they allege the class consists of themselves and similarly situated minority persons and also disclosed an additional 89 families and 125 children represented by Plaintiffs’ counsel who are allegedly members of the purported class (the "First Amended Complaint"). The First Amended Complaint alleges the Company engaged in disparate treatment of Class members based on their race and in so doing violated the Civil Rights Act of 1866 and Pennsylvania common law. The First Amended Complaint seeks compensatory and punitive damages and attorneys’ fees and costs as well declarative and injunctive relief. The parties are engaged in discovery. The Company has filed a motion to dismiss all counts. The Company believes that the lawsuit is without merit and intends to defend the lawsuit vigorously. While there can be no assurance regarding the ultimate outcome of the litigation, the Company believes a potential loss, if any, would not be material.

Other Matters

The Company is a party to various other claims and legal proceedings arising in the normal course of business. In addition, from time to time the Company is subject to audits, inspections and investigations by, or receives requests for information from, various federal and state regulatory agencies, including, but not limited to, the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (“APHIS”), the U.S. Department of Labor’s Occupational Safety and Health Administration (“OSHA”), the California Occupational Safety and Health Administration (“Cal-OSHA”), the Florida Fish & Wildlife Commission (“FWC”), the Equal Employment Opportunity Commission (“EEOC”), the Internal Revenue Service (“IRS”) the U.S. Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”).

Other than those matters discussed above, from time to time, various parties also bring other lawsuits against the Company. Matters where an unfavorable outcome to the Company is probable and which can be reasonably estimated are accrued. Such accruals, which are not material for any period presented, are based on information known about the matters, the Company’s estimate of the outcomes of such matters, and the Company’s experience in contesting, litigating and settling similar matters. Matters that are considered reasonably possible to result in a material loss are not accrued for, but an estimate of the possible loss or range of loss is disclosed, if such amount or range can be determined. At this time, management does not expect any such known claims, legal proceedings or regulatory matters to have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

2020 Settled Matters

In 2020, the Company received final court approval of a settlement for a previously disclosed stockholder class action lawsuit, captioned Baker v. SeaWorld Entertainment, Inc., et al. The settlement required the Company to pay $65.0 million for claims alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as the costs of administration and legal fees and expenses. The settlement does not include or constitute an admission, concession, or finding of any fault, liability, or wrongdoing by the Company or any defendant. During the year ended December 31, 2019, the Company recorded $32.1 million of legal settlement charges, net of insurance recoveries, related to this case, in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income (loss). The full settlement amount was funded during the year ended December 31, 2020.

In 2020, the Company received final court approval of a settlement for a previously disclosed putative derivative lawsuit captioned Kistenmacher v. Atchison, et al. The Company was a “Nominal Defendant” in the lawsuit. Pursuant to the settlement, the Company received $12.5 million of insurance proceeds from its insurers and adopted certain corporate governance modifications. During the year ended December 31, 2020, the Company recorded a legal settlement gain of $12.5 million related to insurance proceeds received in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income (loss).
v3.22.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements

16. FAIR VALUE MEASUREMENTS

Of the Company’s long-term obligations as of December 31, 2022 and 2021, the Term B Loans are classified in Level 2 of the fair value hierarchy and the First-Priority Senior Secured Notes and the Senior Notes are classified in Level 1 of the fair value hierarchy. The fair value of the Term B Loans approximates their carrying value, excluding unamortized debt issuance costs and discounts, due to the variable nature of the underlying interest rates and the frequent intervals at which such interest rates are reset. The fair value of the First-Priority Senior Secured Notes and Senior Notes was determined using quoted prices in active markets for identical instruments. See Note 11–Long-Term Debt for further details.

The Company did not have any assets measured on a recurring basis at fair value as of December 31, 2022 and 2021. The Company maintains its long-term liabilities at carrying value, net of unamortized debt issuance costs and discounts, in the consolidated balance sheet.

The following table presents the Company’s estimated fair value measurements and related classifications for liabilities measured on a recurring basis as of December 31, 2022:

 

 

Quoted Prices in

 

 

 

 

 

 

 

 

 

 

 

Active Markets

 

 

Significant

 

 

 

 

 

 

 

 

for Identical

 

 

Other

 

 

Significant

 

 

 

 

 

Assets and

 

 

Observable

 

 

Unobservable

 

 

Balance at

 

 

Liabilities

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2022

 

Liabilities:

(In thousands)

 

Long-term obligations (a)

$

873,675

 

 

$

1,185,000

 

 

$

—

 

 

$

2,058,675

 

 

(a)
Reflected at carrying value, net of unamortized debt issuance costs and discounts, in the consolidated balance sheet as current maturities of long-term debt of $12.0 million and long-term debt of $2.099 billion as of December 31, 2022.

The following table presents the Company’s estimated fair value measurements and related classifications for liabilities measured on a recurring basis as of December 31, 2021:

 

 

Quoted Prices in

 

 

 

 

 

 

 

 

 

 

 

Active Markets

 

 

Significant

 

 

 

 

 

 

 

 

for Identical

 

 

Other

 

 

Significant

 

 

 

 

 

Assets and

 

 

Observable

 

 

Unobservable

 

 

Balance at

 

 

Liabilities

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2021

 

Liabilities:

(In thousands)

 

Long-term obligations (a)

$

977,594

 

 

$

1,197,000

 

 

$

—

 

 

$

2,174,594

 

 

 

(a)
Reflected at carrying value, net of unamortized debt issuance costs and discounts, in the consolidated balance sheet as current maturities of long-term debt of $12.0 million and long-term debt of $2.105 billion as of December 31, 2021.
v3.22.4
Retirement Plan
 12 Months Ended
Dec. 31, 2022
Postemployment Benefits [Abstract]  
Retirement Plan

17. RETIREMENT PLAN

The Company sponsors a defined contribution plan, under Section 401(k) of the Internal Revenue Code. The Company makes matching cash contributions, subject to certain restrictions, structured as a 50% match on the first 4% of eligible pay contributed by the employee. In April 2020, the Company matching contribution was temporarily suspended in response to the COVID-19 pandemic and remained suspended through 2021. During 2022, the Company reinstated the matching contribution effective January 1, 2022. The contribution will be made on an annual basis prior to March 31 of the following plan year for eligible employees.

Employer matching contributions, net of forfeitures applied, for the years ended December 31, 2022 and 2020, totaled $0.4 million and $1.3 million, respectively, and is included in selling, general and administrative expenses and in operating expenses in the accompanying consolidated statements of comprehensive income (loss).
v3.22.4
Equity-Based Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Equity-Based Compensation

18. EQUITY-BASED COMPENSATION

Equity compensation expense is included in operating expenses and in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income (loss) as follows:

 

 

For the Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(In thousands)

 

Equity compensation expense included in operating expenses

 

$

4,427

 

 

$

9,578

 

 

$

522

 

Equity compensation expense included in selling, general and administrative expenses

 

 

13,731

 

 

 

30,144

 

 

 

6,945

 

Total equity compensation expense

 

$

18,158

 

 

$

39,722

 

 

$

7,467

 

Equity compensation expense for the year ended December 31, 2021, includes the impact of certain prior year performance vesting restricted awards which were previously not considered probable of vesting. Equity compensation expense for the year ended December 31, 2020, includes the reversal of expense related to certain performance vesting restricted awards which at the time were no longer considered probable of vesting and also includes the reversal of expense related to outstanding unvested equity awards previously held by the Company’s former chief executive officer which were forfeited in connection with his departure.

Total unrecognized equity compensation expense for all equity compensation awards probable of vesting as of December 31, 2022 was approximately $25.7 million, which is expected to be recognized over a weighted-average period of 1.6 years.

The total fair value of shares which vested during the years ended December 31, 2022, 2021 and 2020 was approximately $21.8 million, $13.6 million and $12.7 million, respectively. The weighted average grant date fair value per share of time-vesting and performance-vesting restricted awards granted during the years ended December 31, 2022, 2021 and 2020 were $58.08, $52.12 and $15.85 per share, respectively.

The activity related to the Company’s time-vesting and performance-vesting restricted awards during the year ended December 31, 2022 was as follows:

 

 

 

 

 

 

 

 

 

Performance-Vesting Restricted Awards

 

 

 

Time-Vesting
Restricted Awards

 

 

Bonus Performance
Restricted Awards

 

 

Long-Term
Incentive
Performance
Restricted Awards

 

 

 

Shares/Units

 

 

Weighted
Average
Grant Date
Fair Value
per Award

 

 

Shares/Units

 

 

Weighted
Average
Grant Date
Fair Value
per Award

 

 

Shares/Units

 

 

Weighted
Average
Grant Date
Fair Value
per Award

 

Outstanding at December 31, 2021

 

 

938,020

 

 

$

21.94

 

 

 

111,255

 

 

$

51.78

 

 

 

990,003

 

 

$

31.90

 

Granted

 

 

294,901

 

 

$

53.53

 

 

 

134,063

 

 

$

64.02

 

 

 

235,671

 

 

$

60.40

 

Vested

 

 

(666,294

)

 

$

16.37

 

 

 

(119,867

)

 

$

51.84

 

 

 

(160,008

)

 

$

29.13

 

Forfeited

 

 

(33,467

)

 

$

45.40

 

 

 

(26,401

)

 

$

63.44

 

 

 

(206,183

)

 

$

36.26

 

Outstanding at December 31, 2022

 

 

533,160

 

 

$

44.90

 

 

 

99,050

 

 

$

65.16

 

 

 

859,483

 

 

$

39.19

 

 

The total intrinsic value of stock options exercised during the years ended December 31, 2022, 2021 and 2020 was approximately $4.2 million, $9.5 million and $1.3 million, respectively. The activity related to the Company’s stock option awards during the year ended December 31, 2022 was as follows:

 

 

 

Options

 

 

Weighted
Average
Exercise Price

 

 

Weighted
Average
Remaining
Contractual
Life (in years)

 

 

Aggregate
Intrinsic Value
(in thousands)

 

Outstanding at December 31, 2021

 

 

488,434

 

 

$

30.59

 

 

 

 

 

 

 

Granted

 

 

192,078

 

 

$

55.43

 

 

 

 

 

 

 

Forfeited

 

 

(43,712

)

 

$

47.37

 

 

 

 

 

 

 

Expired

 

 

(2,007

)

 

$

35.10

 

 

 

 

 

 

 

Exercised

 

 

(121,081

)

 

$

25.01

 

 

 

 

 

 

 

Outstanding at December 31, 2022

 

 

513,712

 

 

$

39.75

 

 

 

7.24

 

 

$

7,965

 

Exercisable at December 31, 2022

 

 

229,441

 

 

$

24.85

 

 

 

5.06

 

 

$

6,598

 

The weighted average grant date fair value of stock options granted during the year ended December 31, 2022 was $33.13. Key weighted-average assumptions utilized in the Black-Scholes Option Pricing Model for stock options granted during the year ended December 31, 2022 were:

Risk-free interest rate

 

 

2.81

%

Expected volatility

 

 

61.90

%

Expected dividend yield

 

 

0.00

%

Expected life (years) (a)

 

 

6.12

 
(a)
The expected life was estimated using the simplified method, as the Company does not have sufficient historical exercise data due to the limited period of time its common stock has been publicly traded.

Omnibus Incentive Plan

The Company has reserved 15,000,000 shares of common stock for issuance under the Company’s Omnibus Incentive Plan (the “Omnibus Incentive Plan”), of which approximately 7,290,000 are available for future issuance as of December 31, 2022.

Bonus Performance Restricted Units

During the year ended December 31, 2022, the Company granted approximately 120,000 performance-vesting restricted units (the “Bonus Performance Restricted Units”) in accordance with its annual bonus plan for 2022 (the “2022 Bonus Plan”). The 2022 Bonus Plan provides for bonus awards payable 50% in cash and 50% in performance-vesting restricted units (the “Bonus Performance Restricted Units”) and is based upon the Company’s achievement of specified performance goals, including the achievement of certain cost targets, as defined by the 2022 Bonus Plan, with respect to the year ended December 31, 2022 (the “Fiscal 2022”). The total number of units eligible to vest into shares of stock is based on the level of achievement of the targets for Fiscal 2022 which ranges from 0% (if below threshold performance), to 100% (if at target performance) with opportunities to earn above 100% when achievement is above the target performance for certain metrics.

In accordance with ASC 718, Compensation-Stock Compensation, equity compensation expense is recorded on shares probable of vesting. Based on the Company’s actual Fiscal 2022 results with respect to specific performance goals, a portion of the outstanding performance-vesting restricted awards related to the Fiscal 2022 performance goals were considered probable of vesting as of December 31, 2022; therefore, equity compensation expense has been recorded related to these awards. These awards are expected to vest in accordance with their terms, at which time any unearned units will forfeit.

The Company had previously granted performance-vesting restricted units which were eligible to vest based on the Company’s actual results for the year ended December 31, 2021. A portion of these units vested in 2022, and the remainder forfeited in accordance with their terms.

Due to the impact of the COVID-19 pandemic, the Company did not have an annual bonus plan for the fiscal year ended December 31, 2020; however, based on a discretionary review of performance in light of the negative impact of the COVID-19 pandemic on the Company’s business, the Compensation Committee determined to make discretionary equity awards to the Company’s bonus eligible employees during the year ended December 31, 2021. These awards were paid entirely in restricted stock units that vest 50% each on the first and second anniversaries of the date of grant.

The Company also had previously granted performance-vesting restricted units which were eligible to vest based on the Company’s actual results for the year ended December 31, 2019. A portion of these units vested in 2020, and the remaining portion vested in 2021 based on the employee’s continued employment on such vesting date and the remainder forfeited in accordance with their terms.

2022 Long-Term Incentive Awards

During the year ended December 31, 2022, the Company granted long-term incentive plan awards for 2022 (the “2022 Long-Term Incentive Grant”) which were comprised of approximately 55,000 nonqualified stock options (the “Long-Term Incentive Options”) and approximately 180,000 performance-vesting restricted units (the “Long-Term Incentive Performance Restricted Units”) (collectively, the “Long-Term Incentive Awards”).

Long-Term Incentive Options

The Long-Term Incentive Options vest over three years, with one-third vesting on each anniversary of the date of grant, subject to continued service through the applicable vesting date. Equity compensation expense for these options is recognized for each tranche over the vesting period using the straight-line method. Upon stock option exercises, authorized but unissued shares are issued by the Company.

Long-Term Incentive Performance Restricted Units

The Long-Term Incentive Performance Restricted Units are eligible to vest during the three-year performance period beginning on January 1, 2022 and ending on December 31, 2024 (or, extended through December 31, 2025, as applicable) (the “Performance Period”) based upon the Company’s achievement of specified performance goals during the Performance Period. The total number of Long-Term Incentive Performance Restricted Units eligible to vest will be based on the level of achievement of the performance goals and ranges from 0% (if below threshold performance) up to 150% (for maximum performance). Upon achievement of at least the threshold performance goals, 50% of the award for a given level of performance will vest, with the remaining 50% subject to a one-year performance test period. Performance for the test period must meet or exceed the prior year’s performance before up to the remaining 50% of the units can be earned.

The Company recognizes equity compensation expense for its performance-vesting restricted awards ratably over the related performance period, if the performance condition is probable of being achieved. If the probability of vesting changes for performance-vesting restricted awards in a subsequent period, all equity compensation expense related to those awards that would have been recorded, if any, over the requisite service period had the new percentage been applied from inception, will be recorded as a cumulative catch-up or reduction at such subsequent date.

Other Long-Term Incentive Awards

During the year ended December 31, 2022, the Company also granted time-vesting restricted units and options to certain employees which generally vest over three years, with one-third vesting on each of the first three anniversaries of the grant date.

Previous Long-Term Incentive Awards

The Company also has outstanding time-vesting restricted awards (the “Long-Term Incentive Time Restricted Awards”), performance-vesting restricted awards (the “Long-Term Incentive Performance Restricted Awards”) and nonqualified stock options granted under previous long-term incentive plan grants.

During the year ended December 31, 2022, a portion of the previously granted Long-Term Incentive Performance Restricted Awards related to completed performance periods vested, with the remainder forfeiting in accordance with their terms. The remaining outstanding Long-Term Incentive Performance Restricted Awards related to future performance periods are eligible to vest based upon the Company’s achievement of pre-established performance goals for the respective performance period, as defined.

A portion of the outstanding Long-Term Incentive Performance Restricted Awards relate to performance restricted units (the “2019 LTIP Performance Awards”) which contain a four-year performance period consisting of the 2019-2022 calendar years (or, extended through the end of the 2023 calendar year, as applicable) and are eligible to vest based upon the Company’s achievement of specific performance goals for the performance period, as defined, with an opportunity to vest up to 50% of the award earlier if certain goals are achieved in any fiscal year during the performance period. The total number of 2019 LTIP Performance Awards eligible to vest will be based on the level of achievement of the performance goals and ranges from 0% (if below threshold performance) up to 100% (for target or above performance). Upon achievement of the performance goals, up to 50% of the award for a given level of performance will vest, with the remaining 50% subject to a one-year extended performance test period. The goal achieved must be met again or exceeded for the extended performance period before the remaining units are earned. Based on the Company’s results for fiscal year 2021, the Company vested a portion of the 2019 LTIP Performance Awards in the first quarter of 2022. Additionally, based on the Company’s results for fiscal year 2022, the Company expects to vest another portion of the 2019 LTIP Performance Awards in the first quarter of 2023.

Other

During the years ended December 31, 2022, 2021 and 2020, the Company granted equity awards to its non-employee members of its Board which will vest on the day before the Company’s next annual meeting. Each eligible Board member elected the form of their equity award as either deferred stock units (“DSUs”) or restricted stock units (“RSUs”). Each DSU granted represents the right to receive one share of the Company’s common stock three months after the respective director leaves the Board. Upon vesting, each RSU will be converted into one share of the Company’s common stock.

Additionally, during the years ended December 31, 2022, 2021 and 2020, the Company granted equity awards in the form of RSUs or DSUs which vested immediately to each eligible Board member in lieu of quarterly cash payments related to the director’s annual retainers.
v3.22.4
Stockholders' Deficit
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Stockholders' Deficit

19. STOCKHOLDERS’ DEFICIT

As of December 31, 2022, 96,287,771 shares of common stock were issued in the accompanying consolidated balance sheet, which includes 32,376,539 shares of treasury stock held by the Company (see Share Repurchase Programs discussion which follows), but excludes 1,491,693 unvested restricted stock awards held by certain participants in the Company’s equity compensation plans (see Note 18–Equity-Based Compensation).

Share Repurchase Programs

The Board had previously authorized a share repurchase program of up to $250.0 million of the Company’s common stock (the “Former Share Repurchase Program”). In March 2022, the Board approved a replenishment to the Former Share Repurchase Program of $228.2 million, bringing the total amount authorized back up to $250.0 million at that time. Under the Former Share Repurchase Program, during the year ended December 31, 2022, the Company repurchased 3,563,086 shares for an aggregate total of approximately $250.0 million, leaving no amount remaining under the Former Share Repurchase Program.

In May 2022, the Board approved a $250.0 million share repurchase program (the “May Share Repurchase Program”). Under the May Share Repurchase Program, during the year ended December 31, 2022, the Company repurchased 5,085,752 shares for an aggregate total of approximately $250.0 million, leaving no amount remaining under the May Share Repurchase Program.

In August 2022, the Board approved a new $250.0 million share repurchase program (the “Share Repurchase Program”). Under the Share Repurchase Program, during the year ended December 31, 2022, the Company repurchased 3,774,659 shares for an aggregate total of approximately $193.6 million, leaving approximately $56.4 million available under the Share Repurchase Program as of December 31, 2022.

Collectively, as a result of the repurchase programs disclosed above, the Company has repurchased a combined total of 12,423,497 shares for an aggregate combined total of approximately $693.6 million during the year ended December 31, 2022.

During the year ended December 31, 2021, the Company repurchased 3,692,794 shares for an aggregate total of approximately $215.7 million leaving approximately $21.8 million available under the Former Share Repurchase Program as of December 31, 2021. During the year ended December 31, 2020, prior to the COVID-19 temporary park closures, the Company repurchased 469,785 shares for an aggregate total of approximately $12.4 million under the Former Share Repurchase Program.

Under the Share Repurchase Program, the Company is authorized to repurchase shares through open market purchases, privately-negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Exchange Act. The Share Repurchase Program has no time limits and could be suspended or discontinued completely at any time. The number of shares to be purchased and the timing of purchases will be based on the Company’s trading windows and available liquidity, general business and market conditions, and other factors, including legal requirements, share ownership thresholds, debt covenant restrictions, future tax implications and alternative investment opportunities.

All shares repurchased pursuant to the repurchase programs disclosed above, other repurchase transactions, and shares repurchased directly from selling stockholders concurrently with previous secondary offerings, are recorded as treasury stock at a total cost of $1,324.7 million and $631.1 million as of December 31, 2022 and 2021, respectively, and are reflected within stockholders’ deficit in the accompanying consolidated statements of changes in stockholders’ equity (deficit).
v3.22.4
Schedule I-Registrant's Condensed Financial Statements
 12 Months Ended
Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]  
Schedule I-Registrant's Condensed Financial Statements

Schedule I-Registrant’s Condensed Financial Statements

 

SEAWORLD ENTERTAINMENT, INC.

 

PARENT COMPANY ONLY

 

CONDENSED BALANCE SHEETS

 

(In thousands, except share and per share amounts)

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

 

$

4

 

 

$

407

 

Total current assets

 

 

4

 

 

 

407

 

Total assets

 

$

4

 

 

$

407

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Loss in excess of investment in wholly-owned subsidiary

 

$

437,664

 

 

$

33,916

 

Other accrued liabilities

 

 

4

 

 

 

407

 

Total current liabilities

 

 

437,668

 

 

 

34,323

 

Total liabilities

 

 

437,668

 

 

 

34,323

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ Deficit:

 

 

 

 

 

 

Preferred stock, $0.01 par value—authorized, 100,000,000 shares, no shares
   issued or outstanding at December 31, 2022 and 2021

 

 

—

 

 

 

—

 

Common stock, $0.01 par value—authorized, 1,000,000,000 shares; 96,287,771
   and 95,541,992 shares issued at December 31, 2022 and 2021, respectively

 

 

963

 

 

 

955

 

Additional paid-in capital

 

 

710,151

 

 

 

711,474

 

Retained earnings (accumulated deficit)

 

 

175,903

 

 

 

(115,287

)

Treasury stock, at cost (32,376,539 and 19,953,042 shares at December 31, 2022 and 2021, respectively)

 

 

(1,324,681

)

 

 

(631,058

)

Total stockholders’ deficit

 

 

(437,664

)

 

 

(33,916

)

Total Liabilities and Stockholders’ Deficit

 

$

4

 

 

$

407

 

SEAWORLD ENTERTAINMENT, INC.

 

PARENT COMPANY ONLY

 

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Equity in net income (loss) of subsidiary

 

$

291,190

 

 

$

256,513

 

 

$

(312,321

)

Net income (loss)

 

$

291,190

 

 

$

256,513

 

 

$

(312,321

)

Equity in other comprehensive income (loss) of subsidiary

 

 

—

 

 

 

—

 

 

 

1,559

 

Comprehensive income (loss)

 

$

291,190

 

 

$

256,513

 

 

$

(310,762

)

SEAWORLD ENTERTAINMENT, INC.

 

PARENT COMPANY ONLY

 

CONDENSED STATEMENTS OF CASH FLOWS

 

(In thousands)

 

 

 

For the Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

291,190

 

 

$

256,513

 

 

$

(312,321

)

Adjustments to reconcile net income (loss) to net cash provided by (used
   in) operating activities:

 

 

 

 

 

 

 

 

 

Equity in net (income) loss of subsidiary

 

 

(291,190

)

 

 

(256,513

)

 

 

312,321

 

Net cash provided by (used in) operating activities

 

 

—

 

 

 

—

 

 

 

—

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

 

Dividends forfeited from subsidiary- return of capital, net of forfeitures

 

 

—

 

 

 

—

 

 

 

(1

)

Capital contributed to subsidiary from exercises of stock options

 

 

(3,431

)

 

 

(5,955

)

 

 

(2,621

)

Net cash used in investing activities

 

 

(3,431

)

 

 

(5,955

)

 

 

(2,622

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

3,028

 

 

 

5,907

 

 

 

2,920

 

Dividends paid to common stockholders

 

 

—

 

 

 

—

 

 

 

(12

)

Net cash provided by financing activities

 

 

3,028

 

 

 

5,907

 

 

 

2,908

 

Change in Cash and Cash Equivalents

 

 

(403

)

 

 

(48

)

 

 

286

 

Cash and Cash Equivalents - Beginning of year

 

 

407

 

 

 

455

 

 

 

169

 

Cash and Cash Equivalents - End of year

 

$

4

 

 

$

407

 

 

$

455

 

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosures of Noncash Financing Activities

 

 

 

 

 

 

 

 

 

Dividends from subsidiary- return of capital, for purchase of treasury stock

 

$

693,623

 

 

 

215,749

 

 

 

12,406

 

1. DESCRIPTION OF SEAWORLD ENTERTAINMENT, INC.

SeaWorld Entertainment, Inc. (the “Parent”) was incorporated in Delaware on October 2, 2009. See further discussion in Note 1–Description of the Business in the accompanying consolidated financial statements.

The Parent has no operations or significant assets or liabilities other than its investment in SeaWorld Parks & Entertainment, Inc. (“SEA”), which owns and operates twelve theme parks within the United States. Accordingly, the Parent is dependent upon distributions from SEA to fund its obligations. However, under the terms of SEA’s various debt agreements, SEA’s ability to pay dividends or lend to the Parent is restricted, except that SEA may pay specified amounts to the Parent to fund the payment of the Parent’s tax obligations.

The COVID-19 pandemic materially impacted operations for SEA for the years ended December 31, 2021 and 2020. See further discussion relating to the impact of the COVID-19 pandemic in Note 1–Description of the Business in the accompanying consolidated financial statements.

2. BASIS OF PRESENTATION

The accompanying condensed financial statements (the “parent company only financial statements”) include the accounts of the Parent and its investment in SEA accounted for in accordance with the equity method and do not present the financial statements of the Parent and its subsidiary on a consolidated basis. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted since this information is included with the SeaWorld Entertainment, Inc. consolidated financial statements included elsewhere in this Annual Report on Form 10-K (the “consolidated financial statements”). These parent company only financial statements should be read in conjunction with the consolidated financial statements.

3. GUARANTEES

SEA is the borrower under the senior secured credit facilities, (the “Senior Secured Credit Facilities”) under a credit agreement dated as of December 1, 2009 which was amended and restated on August 25, 2021 (the “Amended and Restated Credit Agreement”). On August 25, 2021, SEA completed a private offering of $725.0 million aggregate principal amount of 5.250% senior notes due 2029 (the “Senior Notes”). On April 30, 2020, SEA closed on a private offering of $227.5 million aggregate principal amount of 8.750% first-priority senior secured notes due 2025 (the “First-Priority Senior Secured Notes”). On August 5, 2020, SEA closed on a private offering of $500.0 million aggregate principal amount of 9.500% second-priority senior secured notes due 2025 (the “Second-Priority Senior Secured Notes”), which were fully redeemed during the year ended December 31, 2021.

Under the terms of the Senior Secured Credit Facilities, the obligations of SEA are fully, unconditionally and irrevocably guaranteed by Parent, any subsidiary of Parent that directly or indirectly owns 100% of the issued and outstanding equity interest of SEA, and subject to certain exceptions, each of SEA’s existing and future material domestic wholly-owned subsidiaries (collectively, the “Guarantors”).

SEA’s obligations under the Senior Notes and related indenture are guaranteed, jointly and severally, on a senior secured basis, by the Guarantors, as defined, in accordance with the provisions of the indenture.

The First-Priority Senior Secured Notes are fully and unconditionally guaranteed by the Parent, any subsidiary of the Parent that directly or indirectly owns 100% of the issued and outstanding equity interests of SEA, and subject to certain exceptions, each of SEA’s subsidiaries that guarantees SEA’s existing senior secured credit facilities.

See Note 11–Long-Term Debt of the accompanying consolidated financial statements for further details.

4. DIVIDENDS FROM SUBSIDIARY

During the year ended December 31, 2022, SEA paid dividends to the Parent of approximately $693.6 million. The dividends were in the form of 12,423,497 shares of common stock repurchased by SEA. During the year ended December 31, 2021, SEA paid dividends to the Parent of approximately $215.7 million. The dividends were in the form of 3,692,794 shares of common stock repurchased by SEA (see Note 5–Stockholders’ Deficit which follows).

During the year ended December 31, 2020, SEA paid dividends to the Parent of approximately $12.4 million. The dividends were in the form of payments that SEA made for share repurchases at the Parent level (see Note 5–Stockholders’ Deficit which follows).

During the year ended December 31, 2020, Parent paid accumulated dividends, net of forfeitures, related to shares that carried dividend rights from previous dividend declarations which vested during the year.

5. STOCKHOLDERS’ DEFICIT

Omnibus Incentive Plan

The Parent has reserved 15,000,000 shares of common stock for future issuance under the Omnibus Incentive Plan (the “Omnibus Incentive Plan”), of which approximately 7,290,000 are available for future issuance as of December 31, 2022.

The Omnibus Incentive Plan is administered by the compensation committee of the Parent’s Board, and provides that the Parent may grant equity incentive awards to eligible employees, directors, consultants or advisors of the Parent or its subsidiary, SEA, in the form of stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based and performance compensation awards. If an award under the Omnibus Incentive Plan expires or is canceled, forfeited, or terminated, without issuance to the participant, the unissued shares may be granted again under the Omnibus Incentive Plan. See further discussion in Note 18–Equity-Based Compensation of the accompanying consolidated financial statements.

During the years ended December 31, 2022, 2021 and 2020, respectively, Parent transferred approximately $3.4 million, $6.0 million and $2.6 million in proceeds received from the exercise of stock options to SEA as a capital contribution and increased its investment in SEA.

Share Repurchase Programs

The Parent's Board had previously authorized a share repurchase program of up to $250.0 million of the Company’s common stock (the “Former Share Repurchase Program”). In March 2022, the Parent's Board approved a replenishment to the Former Share Repurchase Program of $228.2 million, bringing the total amount authorized back up to $250.0 million at that time. Under the Former Share Repurchase Program, during the year ended December 31, 2022, the Parent repurchased 3,563,086 shares for an aggregate total of approximately $250.0 million, leaving no amount remaining under the Former Share Repurchase Program.

In May 2022, the Parent's Board approved a $250.0 million share repurchase program (the “May Share Repurchase Program”). Under the May Share Repurchase Program, during the year ended December 31, 2022, the Parent repurchased 5,085,752 shares for an aggregate total of approximately $250.0 million, leaving no amount remaining under the May Share Repurchase Program.

In August 2022, the Parent's Board approved a new $250.0 million share repurchase program (the “Share Repurchase Program”). Under the Share Repurchase Program, during the year ended December 31, 2022, the Parent repurchased 3,774,659 shares for an aggregate total of approximately $193.6 million, leaving approximately $56.4 million available under the Share Repurchase Program as of December 31, 2022.

Collectively, as a result of the repurchase programs disclosed above, the Parent has repurchased a combined total of 12,423,497 shares for an aggregate combined total of approximately $693.6 million during the year ended December 31, 2022.

During the year ended December 31, 2021, the Parent repurchased 3,692,794 shares for an aggregate total of approximately $215.7 million leaving approximately $21.8 million available under the Former Share Repurchase Program as of December 31, 2021. During the year ended December 31, 2020, prior to the COVID-19 temporary park closures, the Parent repurchased 469,785 shares for an aggregate total of approximately $12.4 million under the Former Share Repurchase Program.

Under the Share Repurchase Program, the Parent is authorized to repurchase shares through open market purchases, privately-negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Exchange Act. The Share Repurchase Program has no time limits and could be suspended or discontinued completely at any time.

All shares repurchased pursuant to the Share Repurchase Program, along with shares repurchased directly from selling stockholders concurrently with previous secondary offerings, are recorded as treasury stock at a total cost of $1,324.7 million and $631.1 million as of the years ended December 31, 2022 and 2021, respectively, and are reflected within stockholders’ deficit in the accompanying condensed balance sheets. See further discussion in Note 19–Stockholders’ Deficit of the accompanying consolidated financial statements.
v3.22.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries, including SEA. All intercompany accounts have been eliminated in consolidation.
Use of Estimates

Use of Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions include, but are not limited to, the accounting for self-insurance, deferred tax assets and liabilities, deferred revenue, equity compensation, the valuation of goodwill and other indefinite-lived intangible assets and reviews for potential impairment of long-lived assets. Estimates are based on various factors including current and historical trends, as well as other pertinent company and industry data. The Company regularly evaluates this information to determine if it is necessary to update the basis for its estimates and to adjust for known changes. Actual results could differ from those estimates. Based on the uncertainty relating to the COVID-19 pandemic, the emergence of new variants, and the current operating environment, including but not limited to the impact or timing of government restrictions, any future capacity limitations due to social distancing guidelines, public sentiment on social gatherings, travel and attendance patterns, travel restrictions, effectiveness and adoption of vaccines, boosters and/or medications, the impact of new variants, supply chain disruptions, inflationary pressures, foreign exchange rates and/or additional actions which could be taken by government authorities to manage the pandemic or other macroeconomic issues, the Company is not certain of the ultimate impact these factors could have on its estimates, business or results of operations.
Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash held at financial institutions as well as operating cash onsite at each theme park to fund daily operations and amounts due from third-party credit card companies with settlement terms of less than four days. The amounts due from third-party credit card companies totaled $18.6 million and $11.5 million at December 31, 2022 and 2021, respectively. The cash balances in all accounts held at financial institutions are insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”) through December 31, 2022. At times, cash balances may exceed federally insured amounts and potentially subject the Company to a concentration of credit risk. Management believes that no significant concentration of credit risk exists with respect to these cash balances because of its assessment of the creditworthiness and financial viability of the respective financial institutions.

From time to time, the Company may invest in certain highly liquid instruments with original maturities of three months or less. These instruments may include money market mutual funds, certificates of deposit or time deposits, among others, which may or may not qualify for FDIC insurance. The Company classifies any such instruments as cash and cash equivalents based on their short-term maturities.
Restricted Cash

Restricted Cash

Restricted cash is recorded in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Restricted cash as of December 31, 2022 and 2021 consists primarily of advanced funds for which costs have yet to be incurred related to the Company’s international services agreements. See further discussion in Note 4–Revenues.

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Cash and cash equivalents

 

$

79,196

 

 

$

443,707

 

Restricted cash, included in prepaid expenses and other current assets

 

 

3,124

 

 

 

779

 

Total cash, cash equivalents and restricted cash

 

$

82,320

 

 

$

444,486

 
Accounts Receivable-Net

Accounts Receivable—Net

Accounts receivable are reported at net realizable value and consist primarily of amounts due from customers for the sale of admission products, including amounts due for admissions products purchased on monthly installment arrangements. The Company is not exposed to a significant concentration of credit risk. The Company records an allowance on trade accounts receivable with an offset to the provision for bad debt for estimated credit losses expected based on its history of uncollectable accounts. For all periods presented, the provision for bad debt was immaterial. The Company also records an allowance for estimated credit losses on amounts due from monthly installment arrangements based on historical default rates. As of December 31, 2022 and 2021, the Company recorded $13.8 million and $17.7 million, respectively, as an allowance on its installment arrangements, which is included in accounts receivable, net, in the accompanying consolidated balance sheets, with a corresponding reduction to deferred revenue.

Inventories

Inventories

Inventories are accounted for using the weighted average cost method and are stated at the lower of cost or net realizable value. Inventories consist primarily of products for resale, including merchandise, culinary items and miscellaneous supplies. Obsolete or excess inventories are recorded at their estimated realizable value.

Property and Equipment-Net

Property and Equipment—Net

Property and equipment are recorded at cost. The cost of ordinary or routine maintenance, repairs, spare parts and minor renewals is expensed as incurred. Development costs associated with new attractions and products are generally capitalized after necessary feasibility studies have been completed and final concept or contracts have been approved. The cost of assets is depreciated using the straight-line method based on the following estimated useful lives:

 

Land improvements

 

10-40 years

 

Buildings

 

5-40 years

 

Rides, attractions and equipment

 

3-20 years

 

Animals

 

1-50 years

 

 

Certain costs related to animals exhibited in the theme parks are capitalized and amortized over their estimated lives (1-50 years). All costs to care for animals are expensed as incurred. Construction in progress assets consist primarily of new rides, attractions and infrastructure improvements that have not yet been placed in service. These assets are stated at cost and are not depreciated. Once construction of the assets is completed and placed into service, assets are reclassified to the appropriate asset class based on their nature and depreciated in accordance with the useful lives above. Debt interest is capitalized on all active construction projects. Total interest capitalized for the years ended December 31, 2022, 2021 and 2020 was $6.3 million, $7.3 million and $6.3 million, respectively.
Computer System Development Costs

Computer System Development Costs

The Company capitalizes computer system development costs that meet established criteria and, once placed in service, amortizes those costs to expense on a straight-line basis over five years. Total capitalized costs related to computer system development costs, net of accumulated amortization, were $2.0 million and $1.5 million as of December 31, 2022 and 2021, respectively, and are recorded in other assets in the accompanying consolidated balance sheets. Accumulated amortization was $12.9 million and $12.4 million as of December 31, 2022 and 2021, respectively. Amortization expense of capitalized computer system development costs during the years ended December 31, 2022, 2021 and 2020 was $0.7 million, $1.4 million and $1.7 million, respectively, and is recorded in depreciation and amortization in the accompanying consolidated statements of comprehensive income (loss). Systems reengineering costs do not meet the proper criteria for capitalization and are expensed as incurred.
Goodwill and Other Indefinite-Lived Intangible Assets

Goodwill and Other Indefinite-Lived Intangible Assets

Goodwill and other indefinite-lived intangible assets are not amortized, but instead reviewed for impairment at least annually during the fourth quarter, and as of an interim date should factors or indicators become apparent that would require an interim test, with ongoing recoverability based on applicable reporting unit overall financial performance and consideration of significant events or changes in the overall business environment or macroeconomic conditions. Such events or changes in the overall business environment could include, but are not limited to, significant negative trends or unanticipated changes in the competitive or macroeconomic environment.

In assessing goodwill for impairment, the Company may choose to initially evaluate qualitative factors to determine if it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. The Company considers several factors, including macroeconomic conditions, industry and market conditions, overall financial performance of the reporting unit, changes in management, strategy or customers, and relevant reporting unit specific events such as a change in the carrying amount of net assets, a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit, and the testing of recoverability of a significant asset group within a reporting unit. If the qualitative assessment is not conclusive, then a quantitative impairment analysis for goodwill is performed at the reporting unit level. The Company may also choose to perform this quantitative impairment analysis instead of the qualitative analysis. The quantitative impairment analysis compares the estimated fair value of the reporting unit, determined using the income and/or market approach, to its recorded amount. If the recorded amount exceeds the fair value, then a goodwill impairment charge is recorded for the difference up to the recorded amount of goodwill.

The determination of fair value in the Company’s goodwill impairment analysis is based on an estimate of fair value for the relevant reporting unit utilizing known and estimated inputs at the evaluation date. Some of those inputs include, but are not limited to, estimates of future revenue and expense growth, estimated market multiples, expected capital expenditures, income tax rates and cost of invested capital.

The Company’s other indefinite-lived intangible assets consist of certain trade names/trademarks and other intangible assets which, after considering legal, regulatory, contractual, and other competitive and economic factors, are determined to have indefinite lives and are valued using the relief from royalty method. Trade names/trademarks are combined by brand as a unit of accounting when testing for impairment as the brand represents the highest and best use of the asset and drives the Company’s marketing strategy and international license agreements. Estimates required in this valuation method include estimated future revenues impacted by the trade names/trademarks, royalty rates, and appropriate discount rates. Projections are based on management’s best estimates given recent financial performance, market trends, strategic plans, brand awareness, operating characteristics by park, and other available information. See Note 9–Goodwill and Trade Names/Trademarks, Net, for further details.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

All long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the assets may not be recoverable. An impairment loss may be recognized when estimated undiscounted future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. The measurement of the impairment loss to be recognized is based upon the difference between the estimated fair value and the carrying amounts of the assets.

Fair value is generally determined based upon a discounted cash flow analysis. In order to determine if an asset has been impaired, assets are grouped and tested at the lowest level for which identifiable independent cash flows are available (generally a theme park). See further discussion in Note 8–Property and Equipment, Net.

Self-Insurance Reserves

Self-Insurance Reserves

Reserves are recorded for the estimated amounts of guest and employee claims and expenses incurred each period that are not covered by insurance. Reserves are established for both identified claims and incurred but not reported (“IBNR”) claims. Such amounts are accrued for when claim amounts become probable and estimable. Reserves for identified claims are based upon the Company’s historical claims experience and third-party estimates of settlement costs. Reserves for IBNR claims are based upon the Company’s claims data history, actuarially determined loss development factors and qualitative considerations such as claims management activities. The Company maintains self-insurance reserves for healthcare, auto, general liability and workers’ compensation claims. Total claims reserves were $37.0 million at December 31, 2022, of which $1.8 million is recorded in accrued salaries, wages and benefits, $8.6 million is recorded in other accrued liabilities and the remaining long-term portion is recorded in other liabilities in the accompanying consolidated balance sheets. Total claims reserves were $30.5 million at December 31, 2021, of which $1.7 million is recorded in accrued salaries, wages and benefits, $8.2 million is recorded in other accrued liabilities and the remaining long-term portion is recorded in other liabilities in the accompanying consolidated balance sheets. All reserves are periodically reviewed for changes in facts and circumstances and adjustments are made as necessary.
Debt Issuance Costs

Debt Issuance Costs

Debt issuance costs are amortized to interest expense using the effective interest method over the term of the related debt and are included in long-term debt, net, in the accompanying consolidated balance sheets. See further discussion in Note 11–Long-Term Debt.
Share Repurchase Program and Treasury Stock

Share Repurchase Program and Treasury Stock

From time to time, the Company’s Board of Directors (the “Board”) may authorize share repurchases of common stock. Shares repurchased under Board authorizations are currently held in treasury for general corporate purposes. The Company accounts for treasury stock on the trade date under the cost method. Treasury stock at December 31, 2022 and 2021 is reflected within stockholders’ deficit. See further discussion of the Company’s share repurchase program in Note 19–Stockholders’ Deficit.
Revenue Recognition

Revenue Recognition

The Company records revenue in accordance with Accounting Standards Codification (“ASC”), Topic 606, Revenue from Contracts with Customers, which is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: (i) identify the contracts with customers; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as the Company satisfies the performance obligations. ASC 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. Revenue is recorded net of sales-related taxes collected from guests and remitted or payable to government taxing authorities.

Admissions Revenue

Admissions revenue primarily consists of single-day tickets, annual or season passes or other multi-day or multi-park admission products. Admission products with similar characteristics are analyzed using a portfolio approach for each separate park as the Company expects that the effects on the consolidated financial statements of applying ASC 606 to the portfolio does not differ materially from applying the guidance to individual contracts within the portfolio. For single-day tickets, the Company recognizes revenue at a point in time, upon admission to the park. Annual passes, season passes or other multi-day or multi-park passes allow guests access to specific parks over a specified time period. For these pass and multi-use products, revenue is deferred and recognized over the terms of the admission product based on estimated redemption rates for similar products and is adjusted periodically. The Company estimates redemption rates using historical and forecasted attendance trends by park for similar products. Attendance trends factor in seasonality and are adjusted based on actual trends periodically. These estimated redemption rates impact the timing of when revenue is recognized on these products. Actual results could materially differ from these estimates based on actual attendance patterns. Revenue is recognized on a pro-rata basis based on the estimated allocated selling price of the admission product. For pass products purchased on an installment plan that have met their initial commitment period and have transitioned to a month to month basis, monthly charges are recognized as revenue as payments are received each month, with the exception of payments received during the temporary park closures in 2020 (see further discussion which follows). For multi-day admission products, revenue is allocated based on the number of visits included in the pass and recognized ratably based on each admission into the theme park.

In 2020, as a result of the temporary park closures due to the COVID-19 pandemic, the Company upgraded some of its pass products and extended pass expiration dates for at least the equivalent period the related parks were closed. As a result, the Company adjusted its estimated redemption and recognition patterns on these products to reflect the fact that there was no attendance during the park closures and accordingly the Company did not recognize revenue from these admission products while the parks were temporarily closed in 2020. For passes under installment plans that had transitioned to a month to month basis, the Company temporarily paused monthly charges when the related parks reopened for the equivalent period the respective parks were closed. Accordingly, payments received during the closure period were recorded as deferred revenue and recognized as revenue once the respective parks reopened in 2020, which may not have necessarily reflected attendance patterns for these guests.

The Company has entered into agreements with certain external theme park, zoo and other attraction operators to jointly market and sell single and multi-use admission products. These joint products allow admission to both a Company park(s) and an external park, zoo or other attraction. The agreements with the external partners specify the allocation of revenue to Company parks from any jointly sold products. Whether the Company or the external partner sells the product, the Company’s portion of revenue is deferred until the first time the product is redeemed at one of the Company’s parks and recognized over its related use in a manner consistent with the Company’s other admission products.

Additionally, the Company barters theme park admission products and sponsorship opportunities for advertising, employee recognition awards, and various other services. The fair value of the products or services is recognized into admissions revenue and related expenses at the time of the exchange and approximates the estimated fair value of the goods or services provided or received, whichever is more readily determinable. For the years ended December 31, 2022, 2021 and 2020, amounts included within admissions revenue with an offset to either selling, general and administrative expenses or operating expenses in the accompanying consolidated statements of comprehensive income (loss) related to bartered ticket transactions were $14.8 million, $13.6 million and $4.7 million, respectively.

Food, Merchandise and Other Revenue

Food, merchandise and other revenue primarily consists of food and beverage, retail, merchandise, parking and other in-park products and also includes other miscellaneous revenue which is not significant in the periods presented. The Company recognizes revenue for food and beverage, merchandise and other in-park products when the related products or services are received by the guests. Certain admission products may also include bundled products at the time of purchase, such as food and beverage or merchandise items. The Company conducts an analysis of bundled products to identify separate distinct performance obligations that are material in the context of the contract. For those products that are determined to be distinct performance obligations and material in the context of the contract, the Company allocates a portion of the transaction price to each distinct performance obligation using each performance obligation’s standalone price. If the bundled product is related to a pass product and offered over time, revenue will be recognized over time accordingly.

See further discussion in Note 4–Revenues.
Advertising and Promotional Costs

Advertising and Promotional Costs

Advertising production costs are deferred and expensed the first time the advertisement is shown. Other advertising and media costs are expensed as incurred and, for the years ended December 31, 2022, 2021 and 2020, totaled approximately $104.3 million, $81.4 million and $48.1 million, respectively, and are included in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income (loss).
Equity-Based Compensation

Equity-Based Compensation

In accordance with ASC 718, Compensation-Stock Compensation, the Company measures the cost of employee services rendered in exchange for equity-based compensation based upon the grant date fair market value. The cost is recognized over the requisite service period, which is generally the vesting period unless service or performance conditions require otherwise. The Company recognizes equity compensation expense for its performance-vesting restricted awards ratably over the related performance period if the performance condition is probable of being achieved. If the probability of vesting related to these awards changes in a subsequent period, all equity compensation expense related to those awards that would have been recorded over the requisite service period had the awards been considered probable at the new percentage from inception, is recorded as a cumulative catch-up at such subsequent date. The Company recognizes the impact of forfeitures as they occur. The Company grants time-vesting restricted shares and units, time-vesting deferred stock units, performance-vesting restricted shares and units, and stock options. The Company uses the closing stock price on the date of grant to value its time-vesting and performance-vesting restricted share awards. The Company uses the Black-Scholes Option Pricing Model to value stock options at the date of grant.

On occasion, the Company may modify the terms or conditions of an equity award for its employees. If an award is modified, the Company evaluates the type of modification in accordance with ASC 718 to determine the appropriate accounting. See further discussion in Note 18–Equity-Based Compensation.
Leases

Leases

The Company leases land, warehouse and office space, and equipment, which are classified as either operating or finance leases. Under the provisions of ASC 842, Leases, lease liabilities and right of use assets are recognized at the lease commencement date on the basis of the present value of the future lease payments, with the right of use being adjusted by any prepaid or accrued rent, lease incentives, and initial direct costs. The lease term for each lease includes the noncancelable period plus any periods subject to an option for renewal when it is reasonably certain that the Company will exercise that option. The subsequent measurement of a lease is dependent on whether the lease is classified as an operating or finance lease. Operating leases have a straight-line expense pattern that is recognized as either operating expenses or selling, general, and administrative expenses in the consolidated statements of comprehensive income (loss). Finance leases have a front-loaded expense recognition pattern that is comprised of amortization expense and interest expense that is included in depreciation and amortization and interest expense in the consolidated statements of comprehensive income (loss). The Company initially evaluates the classification of its leases as of the lease commencement date and reevaluates the classification of its leases upon the occurrence of certain lease remeasurement events and when there is a lease modification that is not accounted for as a separate contract.

The present value of future lease payments is calculated using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate, which reflects the rate of interest it would pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. As most of the Company’s leases do not provide an implicit rate, the Company uses incremental borrowing rates based on the information available at the lease commencement date, liability remeasurement date, or lease modification date in determining the present value of the lease payments. In calculating the incremental borrowing rates, the Company considered recent ratings from credit agencies, recent trading prices on the Company’s debt, and current lease demographic information. The Company applies the incremental borrowing rates at a portfolio level based on lease terms.

In accordance with the short-term lease recognition exemption of ASC 842, the Company does not recognize on its balance sheet leases with an initial lease term of 12 months or less. Lease expense for these short-term leases is recognized on a straight-line basis over the lease term.

Some of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term from one to ten years or more. The exercise of lease renewal options is at the Company’s sole discretion and the inclusion of the renewal options in the lease term would only occur when the Company concludes it is reasonably certain of exercising the option(s). Certain leases also include options to purchase the leased property.

Certain of the Company’s lease agreements include rental payments based on a percentage of sales over contractual levels and others include rental payments adjusted periodically for inflation. These variable lease payments are typically recognized when the underlying event occurs and are included in operating expenses in the Company’s consolidated statements of comprehensive income (loss) in the same line item as the expense arising from fixed lease payments. The Company’s lease agreements do not contain any material residual value guarantees, material restrictive covenants or material variable lease costs other than those described in Note 14–Leases related to the Company’s land lease.

All long-lived assets, including right of use assets associated with leases, are reviewed for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the assets may not be recoverable. The measurement of an impairment loss to be recognized is based upon the difference between the estimated fair value and the carrying amounts of the assets. Fair value is generally determined based upon a discounted cash flow analysis.

See further discussion in Note 14–Leases.
Income Taxes

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is established for deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization is dependent on generating sufficient future taxable income or the reversal of deferred tax liabilities during the periods in which those temporary differences become deductible. Forecasted financial performance is not used as evidence until such time as the Company has cumulative pretax income for a rolling 36-month period. The Company evaluates its tax positions by determining if it is more likely than not a tax position is sustainable upon examination, based upon the technical merits of the position, before any of the benefit is recorded for financial statement purposes. The benefit is measured as the largest dollar amount of the position that is more likely than not to be sustained upon settlement. Previously recorded benefits that no longer meet the more likely than not threshold are charged to earnings in the period that the determination is made. Interest and penalties accrued related to unrecognized tax benefits are charged to the provision for (benefit from) income taxes in the accompanying consolidated statements of comprehensive income (loss). See further discussion in Note 13–Income Taxes.
Contingencies

Contingencies

The Company accounts for contingencies in accordance with ASC 450, Contingencies. For loss contingencies, such as potential legal settlements, the Company records an estimated loss when payment is considered probable and the amount of loss is reasonably estimable. In assessing loss contingencies related to legal proceedings that are pending against the Company, the Company evaluates the perceived merits of the legal proceedings as well as the perceived merits of the amount of relief sought or expected to be sought therein. If a loss is considered probable but the best estimate of the loss can only be identified within a range and no specific amount within that range is more likely, then the minimum of the range is accrued. Legal and related professional services costs to defend litigation are expensed as incurred. Insurance recoveries related to potential claims are recognized up to the amount of the recorded liability when coverage is confirmed and the estimated recoveries are probable of payment. These recoveries are not netted against the related liabilities for financial statement presentation. Additionally, for any potential gain contingencies, the Company does not recognize the gain until the period that all contingencies have been resolved and the amounts are realizable. See further discussion in Note 15–Commitments and Contingencies.
Fair Value Measurements air Value Measurements

Fair value is a market-based measurement, not an entity-specific measurement and is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. An entity is permitted to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to use the fair value option for any of its financial assets and financial liabilities that are not already recorded at fair value. Carrying values of financial instruments classified as current assets and current liabilities approximate fair value, due to their short-term nature.

Fair Value Hierarchy—As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity. Fair value is determined for assets and liabilities, based upon significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

Level 1—Quoted prices for identical instruments in active markets.

Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable and include situations where there is little, if any, market activity for the asset or liability.

Determination of Fair Value—If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest and currency rates. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. See further discussion in Note 16–Fair Value Measurements.
Segment Reporting

Segment Reporting

The Company maintains discrete financial information for each of its twelve theme parks, which is used by the Chief Operating Decision Maker (“CODM”), as a basis for allocating resources and assessing performance. Each theme park has been identified as an operating segment and meets the criteria for aggregation due to similar economic characteristics. In addition, all of the theme parks provide similar products and services and share similar processes for delivering services. The theme parks have a high degree of similarity in the workforces and target similar consumer groups. Accordingly, based on these economic and operational similarities and the way the CODM monitors and makes decisions affecting the operations, the Company has concluded that its operating segments may be aggregated and that it has one reportable segment.
Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

ASC 815, Derivatives and Hedging, provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (i) how and why an entity uses derivative instruments, (ii) how the entity accounts for derivative instruments and related hedged items, and (iii) how derivative instruments and related hedged items affect an entity’s financial position, results of operations and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of, and gains and losses on, derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.

As required by ASC 815, the Company records all derivatives, if any, on the balance sheet at fair value as either assets or liabilities. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the changes in fair value of the derivative contract are recorded in accumulated other comprehensive income (loss), net of taxes, and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings.

Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. See further discussion in Note 12–Derivative Instruments and Hedging Activities.
v3.22.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule Of Cash Cash Equivalents And Restricted Cash

Restricted cash is recorded in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Restricted cash as of December 31, 2022 and 2021 consists primarily of advanced funds for which costs have yet to be incurred related to the Company’s international services agreements. See further discussion in Note 4–Revenues.

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Cash and cash equivalents

 

$

79,196

 

 

$

443,707

 

Restricted cash, included in prepaid expenses and other current assets

 

 

3,124

 

 

 

779

 

Total cash, cash equivalents and restricted cash

 

$

82,320

 

 

$

444,486

 
Estimated Useful Lives The cost of assets is depreciated using the straight-line method based on the following estimated useful lives:

Land improvements

 

10-40 years

 

Buildings

 

5-40 years

 

Rides, attractions and equipment

 

3-20 years

 

Animals

 

1-50 years

 

 
v3.22.4
Revenues (Tables)
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Deferred Revenue Balances

The following table reflects the Company’s deferred revenue balance as of December 31, 2022 and 2021:

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Deferred revenue, including long-term portion

 

$

183,772

 

 

$

169,333

 

Less: Deferred revenue, long-term portion, included in other liabilities

 

 

14,237

 

 

 

14,540

 

Deferred revenue, short-term portion

 

$

169,535

 

 

$

154,793

 
v3.22.4
Earnings (Loss) Per Share (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Earnings (Loss) Per Share

Earnings (loss) per share is computed as follows:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

Net
Income

 

 

Shares

 

 

Per
Share
Amount

 

 

Net
Income

 

 

Shares

 

 

Per
Share
Amount

 

 

Net
Loss

 

 

Shares

 

 

Per
Share
Amount

 

 

 

(In thousands, except per share amounts)

 

Basic earnings (loss) per share

 

$

291,190

 

 

 

69,607

 

 

$

4.18

 

 

$

256,513

 

 

 

78,302

 

 

$

3.28

 

 

$

(312,321

)

 

 

78,194

 

 

$

(3.99

)

Effect of dilutive
   incentive-based awards

 

 

 

 

 

673

 

 

 

 

 

 

 

 

 

1,273

 

 

 

 

 

 

 

 

 

—

 

 

 

 

Diluted earnings (loss) per share

 

$

291,190

 

 

 

70,280

 

 

$

4.14

 

 

$

256,513

 

 

 

79,575

 

 

$

3.22

 

 

$

(312,321

)

 

 

78,194

 

 

$

(3.99

)

 
v3.22.4
Inventories (Tables)
 12 Months Ended
Dec. 31, 2022
Inventory Disclosure [Abstract]  
Schedule of Inventories

Inventories as of December 31, 2022 and 2021 consisted of the following:

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Merchandise

 

$

49,422

 

 

$

23,960

 

Food and beverage

 

 

5,768

 

 

 

5,518

 

Total inventories

 

$

55,190

 

 

$

29,478

 

As of December 31, 2022, the increase in merchandise inventory was primarily due to a combination of significant inflationary pressures and increased freight costs along with increased volume purchases and the timing of order deliveries as compared to December 31, 2021.
v3.22.4
Prepaid Expenses and Other Current Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of December 31, 2022 and 2021 consisted of the following:

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Deferred or prepaid insurance

 

$

6,797

 

 

$

5,319

 

Prepaid marketing and advertising costs

 

 

1,046

 

 

 

824

 

Other

 

 

20,417

 

 

 

11,120

 

Total prepaid expenses and other current assets

 

$

28,260

 

 

$

17,263

 

As of December 31, 2022, prepaid expenses and other current assets includes approximately $3.1 million in advanced funds and approximately $2.5 million in costs incurred related to the Company's international services agreements. See further discussion in Note 1–Summary of Significant Accounting Policies and Note 4–Revenues.
v3.22.4
Property and Equipment, Net (Tables)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Components of Property and Equipment, Net

The components of property and equipment, net as of December 31, 2022 and 2021, consisted of the following:

 

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Land

 

$

286,200

 

 

$

286,200

 

Land improvements

 

 

452,276

 

 

 

417,931

 

Buildings

 

 

814,729

 

 

 

753,209

 

Rides, attractions and equipment

 

 

1,736,206

 

 

 

1,665,122

 

Animals

 

 

141,083

 

 

 

142,017

 

Construction in progress

 

 

145,598

 

 

 

120,829

 

Less: accumulated depreciation

 

 

(1,869,413

)

 

 

(1,740,144

)

Total property and equipment, net

 

$

1,706,679

 

 

$

1,645,164

 
v3.22.4
Goodwill and Trade Names/Trademarks, Net (Tables)
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Trade Names/Trademarks, Net

Trade names/trademarks, net, at December 31, 2022 and 2021, consisted of the following:

 

 

 

Weighted

Average

Amortization

Period

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

 

 

 

(In thousands)

 

Trade names/trademarks - indefinite lives

 

 

 

$

157,000

 

 

$

—

 

 

$

157,000

 

Trade names/trademarks - finite lives

 

9.3 years

 

 

12,900

 

 

 

12,900

 

 

 

—

 

Total trade names/trademarks, net

 

 

 

$

169,900

 

 

$

12,900

 

 

$

157,000

 
v3.22.4
Other Accrued Liabilities (Tables)
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Schedule of Other Accrued Liabilities

Other accrued liabilities as of December 31, 2022 and 2021, consisted of the following:

 

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Accrued interest

 

$

18,483

 

 

$

17,372

 

Accrued taxes

 

 

3,284

 

 

 

784

 

Self-insurance reserve

 

 

8,608

 

 

 

8,210

 

Other

 

 

16,539

 

 

 

19,445

 

Total other accrued liabilities

 

$

46,914

 

 

$

45,811

 
v3.22.4
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Summary of Long-Term Debt, Net

Long-term debt, net, as of December 31, 2022 and 2021 consisted of the following:

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Term B Loans (effective interest rate of 7.44% and 3.50% at December 31, 2022 and 2021, respectively)

 

$

1,185,000

 

 

$

1,197,000

 

Senior Notes due 2029 (interest rate of 5.25%)

 

 

725,000

 

 

 

725,000

 

First-Priority Senior Secured Notes due 2025 (interest rate of 8.75%)

 

 

227,500

 

 

 

227,500

 

Total long-term debt

 

 

2,137,500

 

 

 

2,149,500

 

Less: unamortized discounts and debt issuance costs

 

 

(26,441

)

 

 

(32,665

)

Less: current maturities

 

 

(12,000

)

 

 

(12,000

)

Total long-term debt, net

 

$

2,099,059

 

 

$

2,104,835

 
Summary of Long-Term Debt Repayable

Long-term debt at December 31, 2022, is repayable as follows and does not include the impact of any future voluntary prepayments:

 

Years Ending December 31,

 

(In thousands)

 

2023

 

$

12,000

 

2024

 

 

12,000

 

2025

 

 

239,500

 

2026

 

 

12,000

 

2027

 

 

12,000

 

Thereafter

 

 

1,850,000

 

Total

 

$

2,137,500

 
v3.22.4
Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Pre-tax Effect of Derivative Financial Instruments in Consolidated Statements of Comprehensive Income (Loss)

The table below presents the pre-tax effect of the Company’s derivative financial instruments in the accompanying consolidated statements of comprehensive income (loss) for the year ended December 31, 2020:

 

 

Year Ended December 31,

 

 

 

2020

 

 

 

(In thousands)

 

Derivatives in Cash Flow Hedging Relationships:

 

 

 

Loss recognized in accumulated other comprehensive income (loss)

 

$

(370

)

Amounts reclassified from accumulated other comprehensive income (loss) to interest expense

 

$

2,501

 
Schedule of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax

The following table reflects the changes in accumulated other comprehensive income (loss), net of tax, for the year ended December 31, 2020:

Accumulated other comprehensive income (loss) (In thousands):

 

 

 

 

(Losses) Gains on
Cash Flow Hedges

 

Accumulated other comprehensive loss at December 31, 2019

 

 

 

 

 

(1,559

)

Other comprehensive loss before reclassifications

 

 

(271

)

 

 

 

Amounts reclassified from accumulated other comprehensive loss to interest expense

 

 

1,830

 

 

 

 

Change in other comprehensive income (loss), net of tax

 

 

 

 

 

1,559

 

Accumulated other comprehensive income (loss) at December 31, 2020

 

 

 

 

$

—

 
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Provision for (Benefit from) Income Taxes

For the years ended December 31, 2022, 2021 and 2020, the provision for (benefit from) income taxes is comprised of the following:

 

 

2022

 

 

2021

 

 

2020

 

Current income tax provision

 

(In thousands)

 

Federal

 

$

(31

)

 

$

(31

)

 

$

(136

)

State

 

 

3,427

 

 

 

3,984

 

 

 

1,020

 

Foreign

 

 

—

 

 

 

—

 

 

 

5

 

Total current income tax provision

 

 

3,396

 

 

 

3,953

 

 

 

889

 

Deferred income tax provision (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

 

71,642

 

 

 

345

 

 

 

(19,718

)

State

 

 

23,845

 

 

 

(4,462

)

 

 

(11,696

)

Total deferred income tax provision (benefit)

 

 

95,487

 

 

 

(4,117

)

 

 

(31,414

)

Total income tax provision (benefit)

 

$

98,883

 

 

$

(164

)

 

$

(30,525

)
Components of Deferred Income Tax Assets and Liabilities

The components of deferred income tax assets and liabilities as of December 31, 2022 and 2021 are as follows:

 

 

 

2022

 

 

2021

 

Deferred income tax assets:

 

(In thousands)

 

Acquisition and debt related costs

 

$

3,270

 

 

$

4,292

 

Net operating losses

 

 

156,176

 

 

 

199,656

 

Goodwill impairment

 

 

53,684

 

 

 

53,677

 

Self-insurance

 

 

8,816

 

 

 

7,220

 

Deferred revenue

 

 

2,520

 

 

 

2,878

 

Restricted stock

 

 

7,911

 

 

 

9,509

 

Tax credits

 

 

11,847

 

 

 

10,718

 

Legal settlements

 

 

—

 

 

 

855

 

Lease obligations

 

 

29,117

 

 

 

29,410

 

Interest limitation

 

 

10,120

 

 

 

562

 

Charitable contributions

 

 

2,122

 

 

 

3,243

 

Other

 

 

5,220

 

 

 

6,115

 

Total deferred income tax assets

 

 

290,803

 

 

 

328,135

 

Valuation allowance

 

 

(4,601

)

 

 

(4,775

)

Net deferred tax assets

 

 

286,202

 

 

 

323,360

 

Deferred income tax liabilities:

 

 

 

 

 

 

Property and equipment

 

 

(245,396

)

 

 

(194,739

)

Amortization - Goodwill

 

 

(60,230

)

 

 

(55,827

)

Amortization - Other intangibles

 

 

(35,666

)

 

 

(29,482

)

Right of use assets

 

 

(28,568

)

 

 

(29,004

)

Other

 

 

(637

)

 

 

(3,116

)

Total deferred income tax liabilities

 

 

(370,497

)

 

 

(312,168

)

Net deferred income tax (liabilities) assets

 

$

(84,295

)

 

$

11,192

 
Schedule of Reconciliation between Statutory Income Tax Rate and Company's Effective Income Tax Provision (Benefit) Rate

The reconciliation between the statutory income tax rate and the Company’s effective income tax provision (benefit) rate for the years ended December 31, 2022, 2021 and 2020, is as follows:

 

 

2022

 

 

2021

 

 

2020

 

 

 

 

Amount

 

 

%

 

 

Amount

 

 

%

 

 

Amount

 

 

%

 

 

 

 

(In thousands)

 

 

Income tax at federal statutory rates

 

$

81,915

 

 

 

21.00

 

%

$

53,833

 

 

 

21.00

 

%

$

(71,998

)

 

 

21.00

 

%

State taxes, net of federal benefit

 

 

17,103

 

 

 

4.38

 

 

 

12,070

 

 

 

4.71

 

 

 

(15,816

)

 

 

4.61

 

 

Equity-based compensation

 

 

(9,839

)

 

 

(2.52

)

 

 

(8,051

)

 

 

(3.14

)

 

 

(485

)

 

 

0.14

 

 

Tax credits

 

 

(205

)

 

 

(0.05

)

 

 

(137

)

 

 

(0.05

)

 

 

(304

)

 

 

0.09

 

 

Impact of state rate changes

 

 

4,460

 

 

 

1.14

 

 

 

(753

)

 

 

(0.29

)

 

 

(3,906

)

 

 

1.14

 

 

Officer's compensation limitation

 

 

4,612

 

 

 

1.18

 

 

 

3,437

 

 

 

1.34

 

 

 

95

 

 

 

(0.03

)

 

Valuation allowance - state

 

 

—

 

 

 

—

 

 

 

(13,756

)

 

 

(5.37

)

 

 

10,450

 

 

 

(3.05

)

 

Valuation allowance - federal

 

 

—

 

 

 

—

 

 

 

(47,061

)

 

 

(18.36

)

 

 

49,951

 

 

 

(14.57

)

 

Other

 

 

837

 

 

 

0.22

 

 

 

254

 

 

 

0.10

 

 

 

1,488

 

 

 

(0.43

)

 

Income tax provision (benefit)

 

$

98,883

 

 

 

25.35

 

%

$

(164

)

 

 

(0.06

)

%

$

(30,525

)

 

 

8.90

 

%
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Lease Balances and Classification on Consolidated Balance Sheet

The tables below present the lease balances and their classification in the accompanying consolidated balance sheets as of December 31, 2022 and 2021:

 

 

 

 

December 31,

 

 

December 31,

 

 

 

Classification

2022

 

 

2021

 

Assets:

 

 

(In thousands)

 

Operating leases

 

Right of use assets - operating

$

130,479

 

 

$

132,217

 

Finance leases

 

Other assets, net

 

2,353

 

 

 

2,824

 

Total lease assets

 

 

$

132,832

 

 

$

135,041

 

Liabilities:

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

Operating leases

 

Operating lease liabilities

$

3,387

 

 

$

2,895

 

Finance leases

 

Other accrued liabilities

 

171

 

 

 

486

 

Noncurrent

 

 

 

 

 

 

 

Operating leases

 

Long-term operating lease liabilities

 

115,396

 

 

 

117,046

 

Finance leases

 

Other liabilities

 

2,284

 

 

 

2,453

 

Total lease liabilities

 

 

$

121,238

 

 

$

122,880

 
Schedule of Lease Costs and Classification on Consolidated Statements of Comprehensive Income (Loss)

The table below presents the lease costs and their classification in the accompanying consolidated statements of comprehensive income (loss) for the years ended December 31, 2022, 2021 and 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

Classification

2022

 

 

2021

 

 

2020

 

 

 

 

(In thousands)

 

Operating lease cost

 

Operating expenses

$

13,177

 

 

$

13,200

 

 

$

13,966

 

Operating lease cost

 

Selling, general and administrative expenses

 

337

 

 

 

415

 

 

 

425

 

Finance lease cost

 

 

 

 

 

 

 

 

 

 

Amortization of leased assets

 

Depreciation and amortization

 

469

 

 

 

817

 

 

 

844

 

Interest on lease liabilities

 

Interest expense

 

83

 

 

 

123

 

 

 

176

 

Net lease cost

 

 

$

14,066

 

 

$

14,555

 

 

$

15,411

 
Schedule of Lease Maturities

The table below presents the Company’s lease maturities as of December 31, 2022:

 

 

Operating leases

 

 

 

 

Years Ending December 31,

 

Land lease

 

 

Other operating leases

 

 

Total operating leases

 

 

Finance leases

 

 

 

(In thousands)

 

2023

 

$

10,401

 

 

$

2,432

 

 

$

12,833

 

 

$

242

 

2024

 

 

10,401

 

 

 

1,825

 

 

 

12,226

 

 

 

208

 

2025

 

 

10,401

 

 

 

1,422

 

 

 

11,823

 

 

 

201

 

2026

 

 

10,401

 

 

 

1,456

 

 

 

11,857

 

 

 

200

 

2027

 

 

10,401

 

 

 

225

 

 

 

10,626

 

 

 

198

 

Thereafter

 

 

213,227

 

 

 

845

 

 

 

214,072

 

 

 

1,994

 

Total lease payments

 

 

265,232

 

 

 

8,205

 

 

 

273,437

 

 

 

3,043

 

Less: Imputed interest

 

 

(153,494

)

 

 

(1,160

)

 

 

(154,654

)

 

 

(588

)

Lease liabilities

 

$

111,738

 

 

$

7,045

 

 

$

118,783

 

 

$

2,455

 
Schedule of Weighted Average Remaining Lease Terms and Applicable Discount Rates

The table below presents the weighted average remaining lease terms and applicable discount rates as of December 31, 2022 and 2021:

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

Weighted average remaining lease term (years):

 

 

 

 

 

 

Operating leases

 

 

24.27

 

 

 

25.26

 

Finance leases

 

 

15.08

 

 

 

14.23

 

Weighted average discount rate:

 

 

 

 

 

 

Operating leases

 

 

8.16

%

 

 

8.15

%

Finance leases

 

 

3.07

%

 

 

3.37

%
Schedule of Cash Flows and Supplemental Information Associated with Leasing Activities

The table below presents the cash flows and supplemental information associated with the Company’s leasing activities for the years ended December 31, 2022, 2021 and 2020:

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(In thousands)

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

12,934

 

 

$

13,190

 

 

$

3,938

 

Operating cash flows from finance leases

 

$

83

 

 

$

123

 

 

$

176

 

Financing cash flows from finance leases

 

$

485

 

 

$

841

 

 

$

806

 

Right of use assets obtained in exchange for lease liabilities:

 

 

 

 

 

 

 

 

 

Finance leases

 

$

—

 

 

$

32

 

 

$

938

 

Operating leases

 

$

3,174

 

 

$

143

 

 

$

—

 
v3.22.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Estimated Fair Value Measurements and Related Classifications for Liabilities Measured on a Recurring Basis

The following table presents the Company’s estimated fair value measurements and related classifications for liabilities measured on a recurring basis as of December 31, 2022:

 

 

Quoted Prices in

 

 

 

 

 

 

 

 

 

 

 

Active Markets

 

 

Significant

 

 

 

 

 

 

 

 

for Identical

 

 

Other

 

 

Significant

 

 

 

 

 

Assets and

 

 

Observable

 

 

Unobservable

 

 

Balance at

 

 

Liabilities

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2022

 

Liabilities:

(In thousands)

 

Long-term obligations (a)

$

873,675

 

 

$

1,185,000

 

 

$

—

 

 

$

2,058,675

 

 

(a)
Reflected at carrying value, net of unamortized debt issuance costs and discounts, in the consolidated balance sheet as current maturities of long-term debt of $12.0 million and long-term debt of $2.099 billion as of December 31, 2022.

The following table presents the Company’s estimated fair value measurements and related classifications for liabilities measured on a recurring basis as of December 31, 2021:

 

 

Quoted Prices in

 

 

 

 

 

 

 

 

 

 

 

Active Markets

 

 

Significant

 

 

 

 

 

 

 

 

for Identical

 

 

Other

 

 

Significant

 

 

 

 

 

Assets and

 

 

Observable

 

 

Unobservable

 

 

Balance at

 

 

Liabilities

 

 

Inputs

 

 

Inputs

 

 

December 31,

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

2021

 

Liabilities:

(In thousands)

 

Long-term obligations (a)

$

977,594

 

 

$

1,197,000

 

 

$

—

 

 

$

2,174,594

 

 

 

(a)
Reflected at carrying value, net of unamortized debt issuance costs and discounts, in the consolidated balance sheet as current maturities of long-term debt of $12.0 million and long-term debt of $2.105 billion as of December 31, 2021.
v3.22.4
Equity-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Equity Compensation Expense

Equity compensation expense is included in operating expenses and in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income (loss) as follows:

 

 

For the Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(In thousands)

 

Equity compensation expense included in operating expenses

 

$

4,427

 

 

$

9,578

 

 

$

522

 

Equity compensation expense included in selling, general and administrative expenses

 

 

13,731

 

 

 

30,144

 

 

 

6,945

 

Total equity compensation expense

 

$

18,158

 

 

$

39,722

 

 

$

7,467

 
Schedule of Time-Vesting and Performance Vesting Restricted Share Awards

The activity related to the Company’s time-vesting and performance-vesting restricted awards during the year ended December 31, 2022 was as follows:

 

 

 

 

 

 

 

 

 

Performance-Vesting Restricted Awards

 

 

 

Time-Vesting
Restricted Awards

 

 

Bonus Performance
Restricted Awards

 

 

Long-Term
Incentive
Performance
Restricted Awards

 

 

 

Shares/Units

 

 

Weighted
Average
Grant Date
Fair Value
per Award

 

 

Shares/Units

 

 

Weighted
Average
Grant Date
Fair Value
per Award

 

 

Shares/Units

 

 

Weighted
Average
Grant Date
Fair Value
per Award

 

Outstanding at December 31, 2021

 

 

938,020

 

 

$

21.94

 

 

 

111,255

 

 

$

51.78

 

 

 

990,003

 

 

$

31.90

 

Granted

 

 

294,901

 

 

$

53.53

 

 

 

134,063

 

 

$

64.02

 

 

 

235,671

 

 

$

60.40

 

Vested

 

 

(666,294

)

 

$

16.37

 

 

 

(119,867

)

 

$

51.84

 

 

 

(160,008

)

 

$

29.13

 

Forfeited

 

 

(33,467

)

 

$

45.40

 

 

 

(26,401

)

 

$

63.44

 

 

 

(206,183

)

 

$

36.26

 

Outstanding at December 31, 2022

 

 

533,160

 

 

$

44.90

 

 

 

99,050

 

 

$

65.16

 

 

 

859,483

 

 

$

39.19

 
Schedule of Activity Related to Stock Option Awards

The total intrinsic value of stock options exercised during the years ended December 31, 2022, 2021 and 2020 was approximately $4.2 million, $9.5 million and $1.3 million, respectively. The activity related to the Company’s stock option awards during the year ended December 31, 2022 was as follows:

 

 

 

Options

 

 

Weighted
Average
Exercise Price

 

 

Weighted
Average
Remaining
Contractual
Life (in years)

 

 

Aggregate
Intrinsic Value
(in thousands)

 

Outstanding at December 31, 2021

 

 

488,434

 

 

$

30.59

 

 

 

 

 

 

 

Granted

 

 

192,078

 

 

$

55.43

 

 

 

 

 

 

 

Forfeited

 

 

(43,712

)

 

$

47.37

 

 

 

 

 

 

 

Expired

 

 

(2,007

)

 

$

35.10

 

 

 

 

 

 

 

Exercised

 

 

(121,081

)

 

$

25.01

 

 

 

 

 

 

 

Outstanding at December 31, 2022

 

 

513,712

 

 

$

39.75

 

 

 

7.24

 

 

$

7,965

 

Exercisable at December 31, 2022

 

 

229,441

 

 

$

24.85

 

 

 

5.06

 

 

$

6,598

 
Schedule of Stock Options Valuation Assumptions

The weighted average grant date fair value of stock options granted during the year ended December 31, 2022 was $33.13. Key weighted-average assumptions utilized in the Black-Scholes Option Pricing Model for stock options granted during the year ended December 31, 2022 were:

Risk-free interest rate

 

 

2.81

%

Expected volatility

 

 

61.90

%

Expected dividend yield

 

 

0.00

%

Expected life (years) (a)

 

 

6.12

 
(a)
The expected life was estimated using the simplified method, as the Company does not have sufficient historical exercise data due to the limited period of time its common stock has been publicly traded.
v3.22.4
Description of the Business - Additional Information (Detail) - Business
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Aug. 30, 2020
Business Description And Basis Of Presentation [Line Items]        
Number of theme parks owned and operated 12     12
Number of theme parks reopened       10
Hill Path Capital L P [Member]        
Business Description And Basis Of Presentation [Line Items]        
Ownership percentage 42.60%      
Geographic Concentration Risk [Member] | Revenues [Member] | Florida [Member] | Minimum [Member]        
Business Description And Basis Of Presentation [Line Items]        
Percentage of revenue 57.00% 58.00%    
Covid 19 [Member] | Revenues [Member] | Florida [Member] | Minimum [Member]        
Business Description And Basis Of Presentation [Line Items]        
Percentage of revenue     70.00%  
v3.22.4
Summary of Significant Accounting Policies - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2022
USD ($)
Segment
Business
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Aug. 30, 2020
Business
Summary Of Significant Accounting Policies [Line Items]        
Cash and cash equivalents settlement terms less than four days      
Cash and cash equivalents $ 79,196,000 $ 443,707,000    
Allowance on installment arrangements of accounts receivable 13,800,000 17,700,000    
Reduction to deferred revenue 13,800,000 17,700,000    
Interest capitalized 6,300,000 7,300,000 $ 6,300,000  
Capitalized Computer Software, Net 2,000,000.0 1,500,000    
Capitalized Computer Software, Accumulated Amortization 12,900,000 12,400,000    
Capitalized Computer Software, Amortization 700,000 1,400,000 1,700,000  
Self-insurance reserves 37,000,000.0 30,500,000    
Revenue and related expense for bartered ticket transactions $ 14,800,000 13,600,000 4,700,000  
Lease initial or expected term 12 months      
Number of theme parks owned and operated | Business 12     12
Number of reportable segment | Segment 1      
Selling, General and Administrative Expenses [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Other advertising and media costs $ 104,300,000 81,400,000 $ 48,100,000  
Accrued Salaries, Wages and Benefits [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Self-insurance reserves 1,800,000 1,700,000    
Other Accrued Liabilities [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Self-insurance reserves $ 8,600,000 8,200,000    
Computer System Development Costs [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Estimated useful life 5 years      
Maximum [Member]        
Summary Of Significant Accounting Policies [Line Items]        
FDIC insured amount $ 250,000      
Extend or renewal lease term 10 years      
Maximum [Member] | Animals [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Estimated useful life 50 years      
Minimum [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Extend or renewal lease term 1 year      
Minimum [Member] | Animals [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Estimated useful life 1 year      
Amounts Due from Third-Party Credit Card Companies [Member]        
Summary Of Significant Accounting Policies [Line Items]        
Cash and cash equivalents $ 18,600,000 $ 11,500,000    
v3.22.4
Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]        
Cash and cash equivalents $ 79,196 $ 443,707    
Restricted cash, included in prepaid expenses and other current assets $ 3,124 $ 779    
Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets    
Total cash, cash equivalents and restricted cash $ 82,320 $ 444,486 $ 435,225 $ 40,925
v3.22.4
Summary of Significant Accounting Policies - Estimated Useful Lives (Detail)
 12 Months Ended
Dec. 31, 2022
Land Improvements [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 10 years
Land Improvements [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 40 years
Buildings [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
Buildings [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 40 years
Rides, Attractions and Equipment [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Rides, Attractions and Equipment [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 20 years
Animals [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 1 year
Animals [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful life 50 years
v3.22.4
Revenues - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation Of Revenue [Line Items]      
Long term deferred revenue $ 14,237 $ 14,540  
Revenue 1,731,237 1,503,730 $ 431,779
Middle East Project [Member]      
Disaggregation Of Revenue [Line Items]      
Deferred costs incurred under Middle East Project 11,200 8,400 5,900
Deferred revenue 600    
Middle East Project [Member] | Middle East Services Agreements [Member]      
Disaggregation Of Revenue [Line Items]      
Deferred revenue 5,100    
Other Liabilities [Member]      
Disaggregation Of Revenue [Line Items]      
Long term deferred revenue 14,200 14,500  
Other Liabilities [Member] | Middle East Project [Member]      
Disaggregation Of Revenue [Line Items]      
Long term deferred revenue 10,000 10,000 10,000
Deferred revenue, long-term 14,200 12,500 $ 11,900
Other Liabilities [Member] | Middle East Project [Member] | Middle East Services Agreements [Member]      
Disaggregation Of Revenue [Line Items]      
Deferred revenue, long-term   2,000  
Prepaid Expenses and Other Current Assets [Member] | Middle East Project [Member]      
Disaggregation Of Revenue [Line Items]      
Deferred costs incurred under Middle East Project 500    
Prepaid Expenses and Other Current Assets [Member] | Middle East Project [Member] | Middle East Services Agreements [Member]      
Disaggregation Of Revenue [Line Items]      
Deferred costs incurred under Middle East Project $ 2,000    
Other Assets [Member] | Middle East Project [Member] | Middle East Services Agreements [Member]      
Disaggregation Of Revenue [Line Items]      
Deferred costs incurred under Middle East Project   $ 1,200  
v3.22.4
Revenues - Deferred Revenue Balances (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Deferred Revenue Disclosure [Abstract]    
Deferred revenue, including long-term portion $ 183,772 $ 169,333
Less: Deferred revenue, long-term portion, included in other liabilities 14,237 14,540
Deferred revenue, short-term portion $ 169,535 $ 154,793
v3.22.4
Earnings (Loss) Per Share - Schedule of Earnings (Loss) per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share [Abstract]      
Basic earnings (loss) per share $ 291,190 $ 256,513 $ (312,321)
Diluted earnings (loss) per share $ 291,190 $ 256,513 $ (312,321)
Basic 69,607 78,302 78,194
Effect of dilutive incentive-based awards, Shares 673 1,273  
Diluted earnings (loss) per share 70,280 79,575 78,194
Earnings (loss) per share, basic $ 4.18 $ 3.28 $ (3.99)
Earnings (loss) per share, diluted $ 4.14 $ 3.22 $ (3.99)
v3.22.4
Earnings (Loss) Per Share - Additional Information (Detail) - shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share [Line Items]      
Potentially dilutive securities excluded from computation of earnings per share due to net loss in period     2,253,000
Anti-dilutive shares excluded from the computation of Diluted Earnings Per Share 277,000 146,000  
Performance-vesting Restricted Awards [Member]      
Earnings Per Share [Line Items]      
Contingently issuable shares included in the calculation of diluted earnings (loss) per share 236,000 352,000  
v3.22.4
Inventories - Schedule of Inventories (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Merchandise $ 49,422 $ 23,960
Food and beverage 5,768 5,518
Total inventories $ 55,190 $ 29,478
v3.22.4
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Deferred or prepaid insurance $ 6,797 $ 5,319
Prepaid marketing and advertising costs 1,046 824
Other 20,417 11,120
Total prepaid expenses and other current assets $ 28,260 $ 17,263
v3.22.4
Prepaid Expenses And Other Current Assets - Additional Information (Detail) - Prepaid Expenses and Other Current Assets [Member]
$ in Millions
Dec. 31, 2022
USD ($)
Prepaid Expenses And Other Current Assets [Line Items]  
Advanced Funds $ 3.1
Cost Incurred Related To International Service Agreements $ 2.5
v3.22.4
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Property and equipment $ 3,576,092 $ 3,385,308
Less: accumulated depreciation (1,869,413) (1,740,144)
Property and equipment, net 1,706,679 1,645,164
Land [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment 286,200 286,200
Land Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment 452,276 417,931
Buildings [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment 814,729 753,209
Rides, Attractions and Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment 1,736,206 1,665,122
Animals [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment 141,083 142,017
Construction in Progress    
Property, Plant and Equipment [Line Items]    
Property and equipment $ 145,598 $ 120,829
v3.22.4
Property and Equipment, Net - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 151.5 $ 146.5 $ 148.0
Write-offs of property and equipment $ 7.2 $ 6.6 $ 6.7
v3.22.4
Goodwill and Trade Names/Trademarks, Net - Additional Information (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Trade Names/Trademarks [Member]    
Definite And Indefinite Lived Intangible Assets By Major Class [Line Items]    
Net Carrying Value, indefinite lives $ 157,000 $ 157,000
v3.22.4
Goodwill and Trade Names/Trademarks, Net - Trade Names/Trademarks, Net (Detail) - Trade Names/Trademarks [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Definite And Indefinite Lived Intangible Assets By Major Class [Line Items]    
Gross Carrying Amount, indefinite lives $ 157,000 $ 157,000
Net Carrying Value, indefinite lives 157,000 157,000
Gross Carrying Amount, finite lives 12,900 12,900
Accumulated Amortization, finite lives 12,900 12,900
Gross Carrying Amount, total 169,900 169,900
Accumulated Amortization, total 12,900 12,900
Net Carrying Value, total $ 157,000 $ 157,000
Weighted Average Amortization Period, finite lives 9 years 3 months 18 days 9 years 3 months 18 days
v3.22.4
Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Payables and Accruals [Abstract]    
Accrued interest $ 18,483 $ 17,372
Accrued taxes 3,284 784
Self-insurance reserve 8,608 8,210
Other 16,539 19,445
Total other accrued liabilities $ 46,914 $ 45,811
v3.22.4
Other Accrued Liabilities - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Payables and Accruals [Abstract]    
Certain contractual liabilities from temporary COVID-19 park closures $ 10.9 $ 10.9
v3.22.4
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Long-term debt $ 2,137,500 $ 2,149,500
Less: discounts and debt issuance costs (26,441) (32,665)
Less: current maturities (12,000) (12,000)
Total long-term debt, net 2,099,059 2,104,835
Senior Notes [Member]    
Debt Instrument [Line Items]    
Long-term debt 725,000 725,000
Term B Loans [Member]    
Debt Instrument [Line Items]    
Long-term debt 1,185,000 1,197,000
First-Priority Senior Secured Notes [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 227,500 $ 227,500
v3.22.4
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail)
Dec. 31, 2022
Dec. 31, 2021
Aug. 25, 2021
Debt Instrument [Line Items]      
Debt instrument interest rate percentage     5.25%
Senior Notes [Member]      
Debt Instrument [Line Items]      
Debt instrument interest rate percentage 5.25%   5.25%
Term B Loans [Member]      
Debt Instrument [Line Items]      
Debt instrument interest rate effective percentage 7.44% 3.50%  
First-Priority Senior Secured Notes [Member]      
Debt Instrument [Line Items]      
Debt instrument interest rate percentage 8.75%    
First-Priority Senior Secured Notes [Member]      
Debt Instrument [Line Items]      
Debt instrument interest rate percentage   8.75%  
v3.22.4
Long-Term Debt - Additional Information (Detail)
 12 Months Ended
Jun. 09, 2022
USD ($)
Aug. 25, 2021
USD ($)
Jul. 14, 2021
USD ($)
Aug. 05, 2020
USD ($)
Apr. 30, 2020
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Swap
Debt Instrument [Line Items]                
Senior debt   $ 725,000,000.0            
Debt instrument interest rate percentage   5.25%            
Percentage Of Note Redeemed   9.50%            
Discount recorded             $ 12,000,000.0  
Debt issuance costs             12,700,000  
Payment to lenders             2,800,000 $ 13,800,000
Write-off of debt issuance costs and discounts             21,500,000  
Discount initially recorded               $ 21,900,000
Interest Rate Swaps [Member]                
Debt Instrument [Line Items]                
Number of interest rate swaps held | Swap               5
Notional amount of interest rate swap               $ 1,000,000,000.0
Maturity of interest rate swap               May 14, 2020
Senior Secured Credit Facilities [Member]                
Debt Instrument [Line Items]                
Debt Instrument Redemption Description   In addition, the Senior Secured Credit Facilities require the Company to prepay outstanding term loan borrowings, subject to certain exceptions, with:-beginning with the fiscal year ending on December 31, 2022, 50% (which percentage will be reduced to 25% and 0% if the Company satisfies certain net first lien senior secured leverage ratios) of annual excess cash flow, as defined under the Senior Secured Credit Facilities;-100% of the net cash proceeds of all non-ordinary course asset sales or other non-ordinary course dispositions of property, in each case subject to certain exceptions and reinvestment rights;-100% of the net cash proceeds of any issuance or incurrence of debt, other than proceeds from debt permitted under the Senior Secured Credit Facilities.            
Letter of credit participation fees           0.125%    
Cash paid for interest           $ 110,900,000 116,100,000 $ 73,700,000
Senior Notes [Member]                
Debt Instrument [Line Items]                
Debt instrument, maturity date   Aug. 15, 2029            
Senior debt   $ 725,000,000.0            
Debt instrument interest rate percentage   5.25%       5.25%    
Redemption percentage   100.00%            
Debt Instrument Redemption Description   On or after August 15, 2024, SEA may redeem the Senior Notes, in whole at any time or in part from time to time, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if redeemed during the 12-month period commencing on August 15 of the years as follows: (i) in 2024 at 102.625%; (ii) in 2025 at 101.313%; and (iii) in 2026 and thereafter at 100%. In addition, prior to August 15, 2024, SEA may redeem the Senior Notes at its option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the Senior Notes redeemed, plus the “Applicable Premium” and accrued and unpaid interest, if any, to, but excluding, the redemption date. Notwithstanding the foregoing, subject to the provisions set forth in the Indenture, at any time and from time to time on or prior to August 15, 2024, SEA may redeem in the aggregate up to 40% of the original aggregate principal amount of the Senior Notes (calculated after giving effect to any issuance of additional Senior Notes) in an aggregate amount equal to the net cash proceeds of one or more equity offerings at a redemption price equal to 105.250%, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Additionally, upon the occurrence of specified change of control events, each holder will have the right to require SEA to repurchase all or any part of such holder’s notes at a purchase price in cash equal to 101%.            
Interest accrue on senior notes   5.25%            
Initial aggregate principal amount, allowable redeemable percentage   40.00%            
Equity offerings at redemption price   105.25%            
Percentage Of notes redeemable after change of control   101.00%            
Senior Notes [Member] | Debt Instrument Redemption Period One [Member]                
Debt Instrument [Line Items]                
Redemption percentage   102.625%            
Senior Notes [Member] | Debt Instrument Redemption Period Two [Member]                
Debt Instrument [Line Items]                
Redemption percentage   101.313%            
Senior Notes [Member] | Debt Instrument Redemption Period Three [Member]                
Debt Instrument [Line Items]                
Redemption percentage   100.00%            
First-Priority Senior Secured Notes [Member]                
Debt Instrument [Line Items]                
Debt instrument, maturity date         May 01, 2025      
Senior debt         $ 227,500,000      
Debt instrument interest rate percentage         8.75%      
Debt Instrument Redemption Description         SEA may redeem the First-Priority Senior Secured Notes at its option, in whole at any time or in part from time to time, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if redeemed during the 12-month period commencing on May 1 of the years as follows: (i) in 2022 at 104.375%; (ii) in 2023 at 102.188%; and (iii) in 2024 and thereafter at 100%. SEA may also redeem in the aggregate (at a redemption price expressed as a percentage of principal amount thereof): (i) 100% of the First-Priority Senior Secured Notes after certain events constituting a change of control at a redemption price of 101%, plus accrued and unpaid interest, if any, to, but excluding, the redemption date and (ii) up to 40% of the original aggregate principal amount of the First-Priority Senior Secured Notes with amounts equal to the net cash proceeds of certain equity offerings at a redemption price of 108.750%, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.      
Percentage of interest in subsidiary         100.00%      
First-Priority Senior Secured Notes [Member] | Debt Instrument Redemption Period One [Member]                
Debt Instrument [Line Items]                
Redemption percentage         104.375%      
First-Priority Senior Secured Notes [Member] | Debt Instrument Redemption Period Two [Member]                
Debt Instrument [Line Items]                
Redemption percentage         102.188%      
First-Priority Senior Secured Notes [Member] | Debt Instrument Redemption Period Three [Member]                
Debt Instrument [Line Items]                
Redemption percentage         100.00%      
Second-Priority Senior Secured Notes [Member]                
Debt Instrument [Line Items]                
Debt instrument, maturity date       Aug. 01, 2025        
Senior debt       $ 500,000,000.0        
Debt instrument interest rate percentage       9.50%        
Revolving Credit Facility [Member]                
Debt Instrument [Line Items]                
Amount borrowed subsequent to year end           $ 20,000,000.0    
Outstanding letters of credit           18,400,000    
Long term debt, outstanding amount           $ 371,600,000    
Incremental amendment to revolving facility commitments $ 5,000,000.0              
Revolving Credit Facility [Member] | Senior Secured Credit Facilities [Member]                
Debt Instrument [Line Items]                
Debt instrument, maturity date   Aug. 25, 2026            
Amount borrowed subsequent to year end $ 390,000,000.0 $ 385,000,000.0            
Commitment fee payable by the company           0.50%    
Revolving Credit Facility [Member] | Second-Priority Senior Secured Notes [Member]                
Debt Instrument [Line Items]                
Long term debt, outstanding amount       $ 311,000,000.0        
Restrictive Covenants [Member]                
Debt Instrument [Line Items]                
Total net leverage ratio not to be exceeded           425.00%    
Restrictive Covenants [Member] | Debt Agreement [Member]                
Debt Instrument [Line Items]                
Total net leverage ratio, as calculated           278.00%    
Maximum [Member] | Restrictive Covenants [Member] | Senior Secured Credit Facilities [Member]                
Debt Instrument [Line Items]                
Credit facility agreement maximum required first lien secured leverage ratio           625.00%    
Excludable letters of credit under maximum required first lien secured leverage ratio           $ 30,000,000.0    
Minimum [Member] | Restrictive Covenants [Member] | Senior Secured Credit Facilities [Member]                
Debt Instrument [Line Items]                
Credit facility agreement maximum required first lien secured leverage ratio           100.00%    
Minimum percentage of funded loan and letters of credit for covenant to apply           35.00%    
Restatement Agreement [Member] | Maximum [Member]                
Debt Instrument [Line Items]                
Senior secured financing   1,585,000,000.0            
Term B Loans [Member]                
Debt Instrument [Line Items]                
Aggregate principal amount drawn   $ 1,200,000,000.0            
Debt instrument, maturity date   Aug. 25, 2028            
Term B Loans [Member] | Senior Secured Credit Facilities [Member]                
Debt Instrument [Line Items]                
Debt Instrument Redemption Description           Borrowings under the Term B Loans bear interest at a fluctuating rate per annum equal to, at the Company’s option, (i) a base rate equal to the higher of (a) the federal funds rate plus 1/2 of 1%, (b) the rate of interest quoted in the print edition of the Wall Street Journal, Money Rates Section as the prime rate as in effect from time to time and (c) one-month Adjusted LIBOR plus 1% per annum (provided that in no event shall such ABR rate with respect to the Term B Loans be less than 1.50% per annum) (“ABR”), in each case, plus an applicable margin of 2.00% or (ii) a LIBOR rate for the applicable interest period (provided that in no event shall such LIBOR rate with respect to the Term B Loans be less than 0.50% per annum) (“LIBOR”) plus an applicable margin of 3.00%.    
Amortization Payments Of Term Loan           0.25%    
Partial Redemption [Member]                
Debt Instrument [Line Items]                
Redemption of Second-Priority senior secured notes     $ 50,000,000.0          
Redemption percentage     103.00%          
Full Redemption [Member]                
Debt Instrument [Line Items]                
Redemption of Second-Priority senior secured notes   $ 400,000,000.0            
Redemption percentage   100.00%            
Premium paid on redemption of Second-Priority senior secured notes             $ 34,300,000  
Revolving Loans [Member] | Senior Secured Credit Facilities [Member]                
Debt Instrument [Line Items]                
Debt Instrument Redemption Description           Borrowings of the Revolving Loans bear interest at a fluctuating rate per annum equal to, at the Company’s option, (i) ABR (provided that in no event shall such ABR rate with respect to the Revolving Loans be less than 1.00% per annum) plus an applicable margin equal to 1.75% or (ii) LIBOR (provided that in no event shall such LIBOR rate with respect to the Revolving Loans be less than 0.00%) plus an applicable margin of 2.75%. The applicable margin for borrowings of Revolving Loans are subject to one 25 basis point step-down upon achievement by the Company of certain corporate credit ratings, which was achieved during 2022.    
Redemption Price One [Member] | First-Priority Senior Secured Notes [Member]                
Debt Instrument [Line Items]                
Redemption percentage         101.00%      
Redemption Price Two [Member] | First-Priority Senior Secured Notes [Member]                
Debt Instrument [Line Items]                
Redemption percentage         108.75%      
v3.22.4
Long-Term Debt - Summary of Long-Term Debt Repayable (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Maturities of Long-Term Debt [Abstract]    
2023 $ 12,000  
2024 12,000  
2025 239,500  
2026 12,000  
2027 12,000  
Thereafter 1,850,000  
Long-term debt $ 2,137,500 $ 2,149,500
v3.22.4
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Interest Rate Swaps [Member]    
Derivative Instruments Gain Loss [Line Items]    
Derivatives outstanding $ 0 $ 0
v3.22.4
Derivative Instruments and Hedging Activities - Schedule of Pre-tax Effect of Derivative Financial Instruments in Consolidated Statements of Comprehensive Income (Loss) (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
Derivatives in Cash Flow Hedging Relationships:  
Loss recognized in accumulated other comprehensive income (loss) $ (370)
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense $ 2,501
v3.22.4
Derivative Instruments and Hedging Activities - Schedule of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - Gains (Losses) on Cash Flow Hedges [Member]
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
Accumulated other comprehensive income (loss) (In thousands):  
Accumulated other comprehensive income (loss) $ (1,559)
Other comprehensive loss before reclassifications (271)
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense 1,830
Change in other comprehensive income (loss), net of tax $ 1,559
v3.22.4
Income Taxes - Schedule of Provision for (Benefit from) Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current income tax provision      
Federal $ (31) $ (31) $ (136)
State 3,427 3,984 1,020
Foreign     5
Total current income tax provision 3,396 3,953 889
Deferred income tax provision (benefit):      
Federal 71,642 345 (19,718)
State 23,845 (4,462) (11,696)
Total deferred income tax provision (benefit) 95,487 (4,117) (31,414)
Total income tax provision (benefit) $ 98,883 $ (164) $ (30,525)
v3.22.4
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Line Items]      
Cash paid for income taxes $ 1,600 $ 5,900 $ 500
Deferred tax assets, valuation allowance $ 4,601 4,775 $ 65,600
PercentageOfCorporateAlternativeMinimumTax 15.00%    
PercentageOfExciseTaxOnStockRepurchases 1.00%    
Deferred tax assets, valuation allowance reversed amount   60,800  
Minimum [Member]      
Income Tax Disclosure [Line Items]      
Year federal net operating loss carryforwards begin to expire 2030    
Year state net operating loss carryforwards begin to expire 2029    
State Tax Credit Carry Forwards [Member]      
Income Tax Disclosure [Line Items]      
Net operating loss carryforwards $ 634,500    
Deferred tax assets, valuation allowance 4,600 $ 4,800  
Federal Tax Credit Carry Forwards [Member]      
Income Tax Disclosure [Line Items]      
Net operating loss carryforwards $ 627,500    
v3.22.4
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Deferred income tax assets:      
Acquisition and debt related costs $ 3,270 $ 4,292  
Net operating losses 156,176 199,656  
Goodwill impairment 53,684 53,677  
Self-insurance 8,816 7,220  
Deferred revenue 2,520 2,878  
Restricted stock 7,911 9,509  
Tax credits 11,847 10,718  
Legal settlements   855  
Lease obligations 29,117 29,410  
Interest limitation 10,120 562  
Charitable contributions 2,122 3,243  
Other 5,220 6,115  
Total deferred income tax assets 290,803 328,135  
Valuation allowance (4,601) (4,775) $ (65,600)
Net deferred tax assets 286,202 323,360  
Deferred income tax liabilities:      
Property and equipment (245,396) (194,739)  
Amortization - Goodwill (60,230) (55,827)  
Amortization - Other intangibles (35,666) (29,482)  
Right of use assets (28,568) (29,004)  
Other (637) (3,116)  
Total deferred income tax liabilities (370,497) (312,168)  
Net deferred income tax (liabilities) assets   $ 11,192  
Net deferred income tax (liabilities) assets $ (84,295)    
v3.22.4
Income Taxes - Schedule of Reconciliation between Statutory Income Tax Rate and Company's Effective Income Tax Provision (Benefit) Rate (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Income tax at federal statutory rates $ 81,915 $ 53,833 $ (71,998)
State taxes, net of federal benefit 17,103 12,070 (15,816)
Equity-based compensation (9,839) (8,051) (485)
Tax credits (205) (137) (304)
Impact of state rate changes 4,460 (753) (3,906)
Officer's compensation limitation 4,612 3,437 95
Other 837 254 1,488
Total income tax provision (benefit) $ 98,883 $ (164) $ (30,525)
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
Income tax at federal statutory rates 21.00% 21.00% 21.00%
State taxes, net of federal benefit 4.38% 4.71% 4.61%
Equity-based compensation (2.52%) (3.14%) 0.14%
Tax credits (0.05%) (0.05%) 0.09%
Impact of state rate changes 1.14% (0.29%) 1.14%
Officer's compensation limitation 1.18% 1.34% (0.03%)
Other 0.22% 0.10% (0.43%)
Income tax provision (benefit) rate 25.35% (0.06%) 8.90%
State [Member]      
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Valuation allowance   $ (13,756) $ 10,450
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
Valuation allowance   (5.37%) (3.05%)
Federal [Member]      
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Valuation allowance   $ (47,061) $ 49,951
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
Valuation allowance   (18.36%) (14.57%)
v3.22.4
Leases - Additional Information (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
a
Miles
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Lessee Lease Description [Line Items]      
Number of area not to use within the radius of land lease | Miles 560    
Operating lease, lease payment, description The required annual rent payments for the Premises is adjusted every three years to an amount equal to 80% of the average accounting year rent actually paid for the three previous years, with the annual minimum rent calculated as approximately $10.4 million through each of the years ended December 31, 2022, 2021 and 2020.    
Number of percentage of average accounting year rent adjusted on minimum yearly rent 80.00%    
Annual minimum rent calculated $ 10.4 $ 10.4 $ 10.4
Deferred minimum rent, additional amount     8.3
Percentage rent remitted related to prior years 1.0 1.6  
Operating Expenses and Selling, General and Administrative Expenses [Member]      
Lessee Lease Description [Line Items]      
Short term rent expense 4.6 2.7 2.1
Variable rent expense 4.6 3.8 4.9
Accounts Payable and Accrued Expenses [Member]      
Lessee Lease Description [Line Items]      
Accounts payable and accrued expenses $ 10.9 10.8  
City of San Diego [Member]      
Lessee Lease Description [Line Items]      
Number of land lease area | a 190    
Mission Bay Park, California (Premises) [Member]      
Lessee Lease Description [Line Items]      
Number of acres of water | a 17    
Current lease term 2048-06    
Rent expense $ 13.6 $ 11.1 $ 0.5
v3.22.4
Leases - Schedule of Lease Balances and Classification on Consolidated Balance Sheet (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Lessee Lease Description [Line Items]    
Right of use assets-operating leases $ 130,479 $ 132,217
Finance leases $ 2,353 $ 2,824
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Finance leases Finance leases
Total lease assets $ 132,832 $ 135,041
Current    
Operating lease liabilities 3,387 2,895
Finance leases $ 171 $ 486
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Finance leases Finance leases
Noncurrent    
Long-term operating lease liabilities $ 115,396 $ 117,046
Finance leases $ 2,284 $ 2,453
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Finance leases Finance leases
Total lease liabilities $ 121,238 $ 122,880
v3.22.4
Leases - Schedule of Lease Costs and Classification on Consolidated Statements of Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Lease Cost      
Net lease cost $ 14,066 $ 14,555 $ 15,411
Operating Expense [Member]      
Lessee Lease Description [Line Items]      
Operating lease cost 13,177 13,200 13,966
Selling, General and Administrative Expenses [Member]      
Lessee Lease Description [Line Items]      
Operating lease cost 337 415 425
Depreciation and Amortization [Member]      
Finance lease cost      
Amortization of leased assets 469 817 844
Interest Expense [Member]      
Finance lease cost      
Interest on lease liabilities $ 83 $ 123 $ 176
v3.22.4
Leases - Schedule of Lease Maturities (Detail)
$ in Thousands
Dec. 31, 2022
USD ($)
Operating leases  
2023 $ 12,833
2024 12,226
2025 11,823
2026 11,857
2027 10,626
Thereafter 214,072
Total lease payments 273,437
Less: Imputed interest (154,654)
Lease liabilities 118,783
Finance leases  
2023 242
2024 208
2025 201
2026 200
2027 198
Thereafter 1,994
Total lease payments 3,043
Less: Imputed interest (588)
Lease liabilities 2,455
Land Lease [Member]  
Operating leases  
2023 10,401
2024 10,401
2025 10,401
2026 10,401
2027 10,401
Thereafter 213,227
Total lease payments 265,232
Less: Imputed interest (153,494)
Lease liabilities 111,738
Other Operating Leases [Member]  
Operating leases  
2023 2,432
2024 1,825
2025 1,422
2026 1,456
2027 225
Thereafter 845
Total lease payments 8,205
Less: Imputed interest (1,160)
Lease liabilities $ 7,045
v3.22.4
Leases - Schedule of Weighted Average Remaining Lease Terms and Applicable Discount Rates (Detail)
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Operating lease, weighted average remaining lease term (years) 24 years 3 months 7 days 25 years 3 months 3 days
Finance lease, weighted average remaining lease term (years) 15 years 29 days 14 years 2 months 23 days
Operating lease, weighted average discount rate 8.16% 8.15%
Finance lease, weighted average discount rate 3.07% 3.37%
v3.22.4
Leases - Schedule of Cash Flows and Supplemental Information Associated with Leasing Activities (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ 12,934 $ 13,190 $ 3,938
Operating cash flows from finance leases 83 123 176
Financing cash flows from finance leases 485 841 806
Right of use assets obtained in exchange for lease liabilities:      
Finance leases   32 $ 938
Operating leases $ 3,174 $ 143  
v3.22.4
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
shares
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Loss Contingencies [Line Items]      
Additional capital payments $ 219.6    
License agreement term, description Pursuant to a license agreement (“License Agreement”) with Sesame Workshop, the Company pays a specified annual license fee, as well as a specified royalty based on revenues earned in connection with sales of licensed products, all food and beverage items utilizing the licensed elements and any events utilizing such elements if a separate fee is paid for such event. The Company’s principal commitments pursuant to the License Agreement include, among other items, the opening of a second standalone park (“Standalone Park”) (the Company opened the Standalone Park in San Diego on March 26, 2022) and minimum annual capital and marketing thresholds. After the opening of the second Standalone Park (counting the existing Sesame Place Standalone Park in Langhorne, Pennsylvania), SEA has the option to build additional Standalone Parks in the Sesame Territory within agreed upon timelines. The License Agreement has an initial term through December 31, 2031, with an automatic additional 15-year extension plus a five-year option added to the term of the License Agreement from December 31st of the year of each new Standalone Park opening. As of December 31, 2022, the Company estimates the combined remaining liabilities and obligations for the License Agreement commitments could be up to approximately $25.0 million over the remaining term of the agreement. See further discussion concerning royalty payments for the year 2021 in the Sesame Workshop Arbitration section which follows.    
Number of shares at issue in legal matter | shares 300,000    
Legal settlement   $ 65.0  
Legal settlements paid     $ 32.1
Legal settlement gain   $ 12.5  
v3.22.4
Fair Value Measurements - Additional Information (Detail) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]    
Assets measured at fair value $ 0 $ 0
v3.22.4
Fair Value Measurements - Schedule of Estimated Fair Value Measurements and Related Classifications for Liabilities Measured on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Liabilities:    
Long-term obligations $ 2,058,675 $ 2,174,594
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)    
Liabilities:    
Long-term obligations 873,675 977,594
Significant Other Observable Inputs (Level 2) [Member]    
Liabilities:    
Long-term obligations $ 1,185,000 $ 1,197,000
v3.22.4
Fair Value Measurements - Schedule of Estimated Fair Value Measurements and Related Classifications for Liabilities Measured on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]    
Current maturities of long-term debt $ 12,000 $ 12,000
Total long-term debt, net $ 2,099,059 $ 2,104,835
v3.22.4
Retirement Plan - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2020
Defined Contribution Plan Disclosure [Line Items]    
Defined contribution plan name 401(k)  
Defined contribution plan employer contribution description The Company makes matching cash contributions, subject to certain restrictions, structured as a 50% match on the first 4% of eligible pay contributed by the employee.  
Defined Contribution Plan, Sponsor Location [Extensible List] us-gaap:DomesticPlanMember  
Selling, General and Administrative Expenses and Operating Expenses [Member]    
Defined Contribution Plan Disclosure [Line Items]    
Defined contribution plan, employer- matching contributions, net of forfeitures applied $ 0.4 $ 1.3
First 4% [Member]    
Defined Contribution Plan Disclosure [Line Items]    
Employer matching percentage 50.00%  
Percentage of gross pay matched 4.00%  
v3.22.4
Equity-Based Compensation - Schedule of Equity Compensation Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total equity compensation expense $ 18,158 $ 39,722 $ 7,467
Operating Expense [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total equity compensation expense 4,427 9,578 522
Selling, General and Administrative Expenses [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total equity compensation expense $ 13,731 $ 30,144 $ 6,945
v3.22.4
Equity-Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Unrecognized equity compensation cost $ 25.7    
Unrecognized equity compensation cost, weighted-average period 1 year 7 months 6 days    
Total fair value of shares vested during the period $ 21.8 $ 13.6 $ 12.7
Total intrinsic value of stock options exercised $ 4.2 $ 9.5 $ 1.3
Weighted average grant-date fair value of stock options granted $ 33.13    
Percentage of equity awards to the Company's bonus eligible employees 50.00%    
Vesting period 3 years    
Omnibus Incentive Plan [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Common stock reserved for future issuance 15,000,000    
Shares available for future issuance 7,290,000    
2022 Bonus Plan [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Percentage of bonus payable by units 50.00%    
2022 Long-Term Incentive Plan Below Threshold Performance [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting percentage, per year 0.00%    
2019 Long-Term Incentive Plan Below Minimum Threshold Performance [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting percentage, per year 0.00%    
2019 Long-Term Incentive Plan At or Above Maximum Performance [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting percentage, per year 100.00%    
2019 Long-Term Incentive Plan [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Performance period 4 years    
2022 Long-Term Incentive Plan Maximum Performance [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting percentage, per year 150.00%    
Time Vesting and Performance Vesting Restricted Awards [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Weighted average grant date fair value $ 58.08 $ 52.12 $ 15.85
Bonus Performance Restricted Awards [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Weighted average grant date fair value $ 64.02    
Bonus Performance Restricted Awards [Member] | 2022 Bonus Plan [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Performance-vesting restricted units or Nonqualified stock options granted 120,000    
Percentage of bonus payable by units 50.00%    
Below Threshold Performance Bonus Restricted Awards [Member] | 2022 Bonus Plan [Member] | Minimum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting percentage, per year 0.00%    
Below Threshold Performance Bonus Restricted Awards [Member] | 2022 Bonus Plan [Member] | Maximum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting percentage, per year 100.00%    
Long Term Incentive Options [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting period 3 years    
Award vesting terms one-third vesting on each anniversary of the date of grant    
Long-Term Incentive Performance Restricted Units [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Performance-vesting restricted units or Nonqualified stock options granted 180,000    
Percentage of units earned 50.00%    
Award vesting terms The Company recognizes equity compensation expense for its performance-vesting restricted awards ratably over the related performance period, if the performance condition is probable of being achieved. If the probability of vesting changes for performance-vesting restricted awards in a subsequent period, all equity compensation expense related to those awards that would have been recorded, if any, over the requisite service period had the new percentage been applied from inception, will be recorded as a cumulative catch-up or reduction at such subsequent date.    
Previous Long-Term Incentive Awards [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Award vesting terms A portion of the outstanding Long-Term Incentive Performance Restricted Awards relate to performance restricted units (the “2019 LTIP Performance Awards”) which contain a four-year performance period consisting of the 2019-2022 calendar years (or, extended through the end of the 2023 calendar year, as applicable) and are eligible to vest based upon the Company’s achievement of specific performance goals for the performance period, as defined, with an opportunity to vest up to 50% of the award earlier if certain goals are achieved in any fiscal year during the performance period. The total number of 2019 LTIP Performance Awards eligible to vest will be based on the level of achievement of the performance goals and ranges from 0% (if below threshold performance) up to 100% (for target or above performance). Upon achievement of the performance goals, up to 50% of the award for a given level of performance will vest, with the remaining 50% subject to a one-year extended performance test period. The goal achieved must be met again or exceeded for the extended performance period before the remaining units are earned. Based on the Company’s results for fiscal year 2021, the Company vested a portion of the 2019 LTIP Performance Awards in the first quarter of 2022. Additionally, based on the Company’s results for fiscal year 2022, the Company expects to vest another portion of the 2019 LTIP Performance Awards in the first quarter of 2023.    
Deferred Stock Units [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of common stock shares to be received for each deferred stock unit   1  
Period of time after director has left the board to receive shares   3 months  
Nonqualified Stock Options Granted [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Performance-vesting restricted units or Nonqualified stock options granted 55,000    
v3.22.4
Equity-Based Compensation - Schedule of Employee Stock Performance Activity (Detail)
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Time-Vesting Restricted Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares/Units, Outstanding, Beginning Balance | shares 938,020
Shares/Units, Granted | shares 294,901
Shares/Units, Vested | shares (666,294)
Shares/Units, Forfeited | shares (33,467)
Shares/Units, Outstanding, Ending Balance | shares 533,160
Weighted Average Grant Date Fair Value per Award, Outstanding, Beginning Balance | $ / shares $ 21.94
Weighted Average Grant Date Fair Value per Award, Granted | $ / shares 53.53
Weighted Average Grant Date Fair Value per Award, Vested | $ / shares 16.37
Weighted Average Grant Date Fair Value per Award, Forfeited | $ / shares 45.40
Weighted Average Grant Date Fair Value per Award, Outstanding, Ending Balance | $ / shares $ 44.90
Bonus Performance Restricted Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares/Units, Outstanding, Beginning Balance | shares 111,255
Shares/Units, Granted | shares 134,063
Shares/Units, Vested | shares (119,867)
Shares/Units, Forfeited | shares (26,401)
Shares/Units, Outstanding, Ending Balance | shares 99,050
Weighted Average Grant Date Fair Value per Award, Outstanding, Beginning Balance | $ / shares $ 51.78
Weighted Average Grant Date Fair Value per Award, Granted | $ / shares 64.02
Weighted Average Grant Date Fair Value per Award, Vested | $ / shares 51.84
Weighted Average Grant Date Fair Value per Award, Forfeited | $ / shares 63.44
Weighted Average Grant Date Fair Value per Award, Outstanding, Ending Balance | $ / shares $ 65.16
Long-Term Incentive Performance Restricted Awards [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares/Units, Outstanding, Beginning Balance | shares 990,003
Shares/Units, Granted | shares 235,671
Shares/Units, Vested | shares (160,008)
Shares/Units, Forfeited | shares (206,183)
Shares/Units, Outstanding, Ending Balance | shares 859,483
Weighted Average Grant Date Fair Value per Award, Outstanding, Beginning Balance | $ / shares $ 31.90
Weighted Average Grant Date Fair Value per Award, Granted | $ / shares 60.40
Weighted Average Grant Date Fair Value per Award, Vested | $ / shares 29.13
Weighted Average Grant Date Fair Value per Award, Forfeited | $ / shares 36.26
Weighted Average Grant Date Fair Value per Award, Outstanding, Ending Balance | $ / shares $ 39.19
v3.22.4
Equity-Based Compensation - Schedule of Activity Related to Stock Option Awards (Detail)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Share-Based Payment Arrangement [Abstract]  
Options, Outstanding, Beginning Balance | shares 488,434
Options, Granted | shares 192,078
Options, Forfeited | shares (43,712)
Options, Expired | shares (2,007)
Options, Exercised | shares (121,081)
Options, Outstanding, Ending Balance | shares 513,712
Options, Exercisable at December 31, 2022 | shares 229,441
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ / shares $ 30.59
Weighted Average Exercise Price, Granted | $ / shares 55.43
Weighted Average Exercise Price, Forfeited | $ / shares 47.37
Weighted Average Exercise Price, Expired | $ / shares 35.10
Weighted Average Exercise Price, Exercised | $ / shares 25.01
Weighted Average Exercise Price, Outstanding, Ending Balance | $ / shares 39.75
Weighted Average Exercise Price, Exercisable at December 31, 2022 | $ / shares $ 24.85
Weighted Average Remaining Contractual Life, Outstanding at December 31, 2022 7 years 2 months 26 days
Weighted Average Remaining Contractual Life, Exercisable at December 31, 2022 5 years 21 days
Aggregate Intrinsic Value, Outstanding at December 31, 2022 | $ $ 7,965
Aggregate Intrinsic Value, Exercisable at December 31, 2022 | $ $ 6,598
v3.22.4
Equity-Based Compensation - Schedule of Stock Options Valuation Assumptions (Detail)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Risk-free interest rate 2.81%
Expected volatility 61.90%
Expected dividend yield 0.00%
Expected life (years) 6 years 1 month 13 days [1]
[1] The expected life was estimated using the simplified method, as the Company does not have sufficient historical exercise data due to the limited period of time its common stock has been publicly traded.
v3.22.4
Stockholders' Deficit - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Aug. 31, 2022
May 31, 2022
Mar. 31, 2022
Dec. 31, 2019
Stockholders Equity [Line Items]              
Common stock, shares issued 96,287,771 95,541,992          
Treasury stock, shares 32,376,539 19,953,042          
Stock Repurchase Programs, number of shares repurchased 12,423,497 3,692,794 469,785        
Stock repurchases under Share Repurchase Programs $ 693,600,000 $ 215,700,000 $ 12,400,000        
Share Repurchase Program, remaining authorized repurchase amount   21,800,000          
Treasury stock at cost $ 1,324,681,000 $ 631,058,000          
Share Repurchase Program [Member]              
Stockholders Equity [Line Items]              
Share Repurchase Program, authorized amount       $ 250,000,000.0      
Stock Repurchase Programs, number of shares repurchased 3,774,659            
Stock repurchases under Share Repurchase Programs $ 193,600,000            
Share Repurchase Program, remaining authorized repurchase amount 56,400,000            
Former Share Repurchase Program [Member]              
Stockholders Equity [Line Items]              
Share Repurchase Program, authorized amount $ 250,000,000.0         $ 250,000,000.0  
Stock Repurchase Programs, number of shares repurchased 3,563,086            
Stock repurchases under Share Repurchase Programs $ 250,000,000.0            
Share Repurchase Program, remaining authorized repurchase amount $ 0            
Stock Repurchase Program, replenishment amount           $ 228,200,000  
May Share Repurchase Program [Member]              
Stockholders Equity [Line Items]              
Share Repurchase Program, authorized amount         $ 250,000,000.0    
Stock Repurchase Programs, number of shares repurchased 5,085,752            
Stock repurchases under Share Repurchase Programs $ 250,000,000.0            
Share Repurchase Program, remaining authorized repurchase amount $ 0            
Common Stock [Member]              
Stockholders Equity [Line Items]              
Common stock, shares issued 96,287,771 95,541,992 94,652,248       94,044,203
Restricted Stock Units [Member]              
Stockholders Equity [Line Items]              
Number of unvested shares 1,491,693            
v3.22.4
Schedule I - Condensed Balance Sheets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current assets:        
Total current assets $ 233,696 $ 567,396    
Total assets 2,325,787 2,610,316    
Current liabilities:        
Other accrued liabilities 46,914 45,811    
Total current liabilities 409,206 371,966    
Total liabilities 2,763,451 2,644,232    
Commitments and contingencies    
Stockholders’ Deficit:        
Preferred stock, $0.01 par value-authorized, 100,000,000 shares, no shares issued or outstanding at December 31, 2022 and 2021    
Common stock, $0.01 par value-authorized, 1,000,000,000 shares; 96,287,771 and 95,541,992 shares issued at December 31, 2022 and 2021, respectively 963 955    
Additional paid-in capital 710,151 711,474    
Retained earnings (accumulated deficit) 175,903 (115,287)    
Treasury stock, at cost (32,376,539 and 19,953,042 shares at December 31, 2022 and 2021, respectively) (1,324,681) (631,058)    
Total stockholders’ deficit (437,664) (33,916) $ (105,803) $ 210,892
Total liabilities and stockholders’ deficit 2,325,787 2,610,316    
Parent Company [Member]        
Current assets:        
Cash 4 407    
Total current assets 4 407    
Total assets 4 407    
Current liabilities:        
Loss in excess of investment in wholly-owned subsidiary 437,664 33,916    
Other accrued liabilities 4 407    
Total current liabilities 437,668 34,323    
Total liabilities 437,668 34,323    
Commitments and contingencies    
Stockholders’ Deficit:        
Preferred stock, $0.01 par value-authorized, 100,000,000 shares, no shares issued or outstanding at December 31, 2022 and 2021    
Common stock, $0.01 par value-authorized, 1,000,000,000 shares; 96,287,771 and 95,541,992 shares issued at December 31, 2022 and 2021, respectively 963 955    
Additional paid-in capital 710,151 711,474    
Retained earnings (accumulated deficit) 175,903 (115,287)    
Treasury stock, at cost (32,376,539 and 19,953,042 shares at December 31, 2022 and 2021, respectively) (1,324,681) (631,058)    
Total stockholders’ deficit (437,664) (33,916)    
Total liabilities and stockholders’ deficit $ 4 $ 407    
v3.22.4
Schedule I - Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Condensed Balance Sheet Statements, Captions [Line Items]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 96,287,771 95,541,992
Treasury stock, shares 32,376,539 19,953,042
Parent Company [Member]    
Condensed Balance Sheet Statements, Captions [Line Items]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 96,287,771 95,541,992
Treasury stock, shares 32,376,539 19,953,042
v3.22.4
Schedule I - Condensed Statements of Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Condensed Financial Statements, Captions [Line Items]      
Net income (loss) $ 291,190 $ 256,513 $ (312,321)
Net income (loss) 291,190 256,513 (312,321)
Comprehensive income (loss) 291,190 256,513 (310,762)
Parent Company [Member]      
Condensed Financial Statements, Captions [Line Items]      
Net income (loss) 291,190 256,513 (312,321)
Net income (loss) 291,190 256,513 (312,321)
Equity in other comprehensive income (loss) of subsidiary     1,559
Comprehensive income (loss) 291,190 256,513 (310,762)
Parent Company [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]      
Condensed Financial Statements, Captions [Line Items]      
Net income (loss) $ 291,190 $ 256,513 $ (312,321)
v3.22.4
Schedule I - Condensed Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash Flows From Operating Activities:      
Net income/loss $ 291,190 $ 256,513 $ (312,321)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Equity in net (income) loss of subsidiary (291,190) (256,513) 312,321
Net cash provided by (used in) operating activities 564,588 503,012 (120,729)
Cash Flows From Investing Activities:      
Net cash used in investing activities (200,705) (128,854) (109,175)
Cash Flows From Financing Activities:      
Exercise of stock options 3,028 5,907 2,920
Net cash (used in) provided by financing activities (726,049) (364,897) 624,204
Change in Cash and Cash Equivalents, including Restricted Cash (362,166) 9,261 394,300
Cash and Cash Equivalents, including Restricted Cash—Beginning of year 444,486 435,225 40,925
Cash and Cash Equivalents, including Restricted Cash—End of year 82,320 444,486 435,225
Parent Company [Member]      
Cash Flows From Operating Activities:      
Net income/loss 291,190 256,513 (312,321)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Equity in net (income) loss of subsidiary (291,190) (256,513) 312,321
Cash Flows From Investing Activities:      
Dividends forfeited from subsidiary- return of capital, net of forfeitures     (1)
Capital contributed to subsidiary from exercises of stock options (3,431) (5,955) (2,621)
Net cash used in investing activities (3,431) (5,955) (2,622)
Cash Flows From Financing Activities:      
Exercise of stock options 3,028 5,907 2,920
Dividends paid to common stockholders     (12)
Net cash (used in) provided by financing activities 3,028 5,907 2,908
Change in Cash and Cash Equivalents, including Restricted Cash (403) (48) 286
Cash and Cash Equivalents, including Restricted Cash—Beginning of year 407 455 169
Cash and Cash Equivalents, including Restricted Cash—End of year 4 407 455
Supplemental Disclosures of Noncash Financing Activities      
Dividends from subsidiary- return of capital, for purchase of treasury stock 693,623 215,749 12,406
Parent Company [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]      
Cash Flows From Operating Activities:      
Net income/loss 291,190 256,513 (312,321)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Equity in net (income) loss of subsidiary $ (291,190) $ (256,513) $ 312,321
v3.22.4
Schedule I - Description of SeaWorld Entertainment, Inc. - Additional Information (Detail) - Business
Dec. 31, 2022
Aug. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Number of theme parks owned and operated 12 12
v3.22.4
Schedule I - Guarantees - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2022
Aug. 25, 2021
Aug. 05, 2020
Apr. 30, 2020
Guarantee Obligations [Line Items]        
Senior debt   $ 725.0    
Debt instrument interest rate percentage   5.25%    
Senior Notes [Member]        
Guarantee Obligations [Line Items]        
Senior debt   $ 725.0    
Debt instrument interest rate percentage 5.25% 5.25%    
First-Priority Senior Secured Notes [Member]        
Guarantee Obligations [Line Items]        
Senior debt       $ 227.5
Debt instrument interest rate percentage       8.75%
First-Priority Senior Secured Notes [Member] | SeaWorld Parks & Entertainment, Inc (SEA) [Member]        
Guarantee Obligations [Line Items]        
Equity Method Investment, Ownership Percentage 100.00%      
Second-Priority Senior Secured Notes [Member]        
Guarantee Obligations [Line Items]        
Senior debt     $ 500.0  
Debt instrument interest rate percentage     9.50%  
Senior Secured Credit Facilities [Member] | SeaWorld Parks & Entertainment, Inc (SEA) [Member]        
Guarantee Obligations [Line Items]        
Equity Method Investment, Ownership Percentage 100.00%      
v3.22.4
Schedule I - Dividends from Subsidiary - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dividends Payable [Line Items]      
Repurchase of treasury shares, shares 12,423,497 3,692,794 469,785
Parent Company [Member]      
Dividends Payable [Line Items]      
Dividends from subsidiary- return of capital, for purchase of treasury stock $ 693,623 $ 215,749 $ 12,406
Repurchase of treasury shares, shares 12,423,497 3,692,794 469,785
v3.22.4
Schedule I - Stockholders' Deficit - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Aug. 31, 2022
May 31, 2022
Mar. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Repurchase of treasury shares, shares 12,423,497 3,692,794 469,785      
Stock repurchased during period, total cost $ 693,623,000 $ 215,749,000 $ 12,406,000      
Stock repurchases under Share Repurchase Programs $ 693,600,000 $ 215,700,000 $ 12,400,000      
Stock Repurchase Programs, number of shares repurchased 12,423,497 3,692,794 469,785      
Share Repurchase Program, remaining authorized repurchase amount   $ 21,800,000        
Treasury stock at cost $ 1,324,681,000 631,058,000        
Share Repurchase Program [Member]            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Share Repurchase Program, authorized amount       $ 250,000,000.0    
Stock repurchases under Share Repurchase Programs $ 193,600,000          
Stock Repurchase Programs, number of shares repurchased 3,774,659          
Share Repurchase Program, remaining authorized repurchase amount $ 56,400,000          
Former Share Repurchase Program [Member]            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Share Repurchase Program, authorized amount 250,000,000.0         $ 250,000,000.0
Stock Repurchase Program, replenishment amount           228,200,000
Stock repurchases under Share Repurchase Programs $ 250,000,000.0          
Stock Repurchase Programs, number of shares repurchased 3,563,086          
Share Repurchase Program, remaining authorized repurchase amount $ 0          
May Share Repurchase Program [Member]            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Share Repurchase Program, authorized amount         $ 250,000,000.0  
Stock repurchases under Share Repurchase Programs $ 250,000,000.0          
Stock Repurchase Programs, number of shares repurchased 5,085,752          
Share Repurchase Program, remaining authorized repurchase amount $ 0          
Parent Company [Member]            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Capital contributed to subsidiary from exercises of stock options $ 3,431,000 $ 5,955,000 $ 2,621,000      
Repurchase of treasury shares, shares 12,423,497 3,692,794 469,785      
Stock repurchased during period, total cost $ 693,600,000 $ 215,700,000 $ 12,400,000      
Stock Repurchase Programs, number of shares repurchased 12,423,497          
Share Repurchase Program, remaining authorized repurchase amount   21,800,000        
Treasury stock at cost $ 1,324,681,000 $ 631,058,000        
Parent Company [Member] | Share Repurchase Program [Member]            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Share Repurchase Program, authorized amount       $ 250,000,000.0    
Stock repurchases under Share Repurchase Programs $ 193,600,000          
Stock Repurchase Programs, number of shares repurchased 3,774,659          
Share Repurchase Program, remaining authorized repurchase amount $ 56,400,000          
Parent Company [Member] | Former Share Repurchase Program [Member]            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Share Repurchase Program, authorized amount 250,000,000.0         250,000,000.0
Stock Repurchase Program, replenishment amount           $ 228,200,000
Stock repurchases under Share Repurchase Programs $ 250,000,000.0          
Stock Repurchase Programs, number of shares repurchased 3,563,086          
Share Repurchase Program, remaining authorized repurchase amount $ 0          
Parent Company [Member] | May Share Repurchase Program [Member]            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Share Repurchase Program, authorized amount         $ 250,000,000.0  
Stock repurchases under Share Repurchase Programs $ 250,000,000.0          
Stock Repurchase Programs, number of shares repurchased 5,085,752          
Share Repurchase Program, remaining authorized repurchase amount $ 0          
Omnibus Incentive Plan [Member]            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Common stock reserved for future issuance 15,000,000          
Shares available for future issuance 7,290,000          
Omnibus Incentive Plan [Member] | Parent Company [Member]            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Common stock reserved for future issuance 15,000,000          
Shares available for future issuance 7,290,000