10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 2, 2015

Commission file number: 001-33296

NATIONAL CINEMEDIA, INC.

(Exact name of registrant as specified in its charter)

Delaware	20-5665602
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

9110 East Nichols Avenue, Suite 200 Centennial, Colorado	80112-3405
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (303) 792-3600

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

As of August 4, 2015, 61,472,476 shares of the registrant’s common stock (including unvested restricted shares), par value of $0.01 per share, were outstanding.

TABLE OF CONTENTS

		Page
	PART I
Item 1.	Financial Statements	2
	Unaudited Condensed Consolidated Balance Sheets	2
	Unaudited Condensed Consolidated Statements of Income	3
	Unaudited Condensed Consolidated Statements of Comprehensive Income	4
	Unaudited Condensed Consolidated Statements of Cash Flows	5
	Unaudited Condensed Consolidated Statements of Equity/(Deficit)	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	35
Item 4.	Controls and Procedures	35
	PART II
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	36
Signatures		37

PART I

Item 1. Financial Statements

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share and per share data)

(UNAUDITED)

	July 2, 2015			January 1, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	11.8		$	13.4
Short-term marketable securities		16.1			21.7
Receivables, net of allowance of $4.8 and $4.3, respectively		126.9			116.5
Prepaid expenses		4.2			3.6
Deferred tax assets		2.9			6.9
Income tax receivable		5.8			6.1
Current portion of notes receivable - founding members		4.2			4.2
Other current assets		0.8			—
Total current assets		172.7			172.4
NON-CURRENT ASSETS:
Property and equipment, net of accumulated depreciation of $75.9 and $72.9,    respectively		21.9			22.4
Intangible assets, net of accumulated amortization of $80.3 and $69.3, respectively		508.8			488.6
Deferred tax assets		230.0			227.3
Debt issuance costs, net of accumulated amortization of $19.1 and $17.8, respectively		14.2			15.5
Long-term notes receivable, net of current portion - founding members		16.6			16.6
Other investments		4.3			2.5
Long-term marketable securities		41.5			45.5
Other assets		0.5			0.6
Total non-current assets		837.8			819.0
TOTAL ASSETS	$	1,010.5		$	991.4
LIABILITIES AND EQUITY/(DEFICIT)
CURRENT LIABILITIES:
Amounts due to founding members	$	28.1		$	34.9
Payable to founding members under tax receivable agreement		15.4			19.6
Accrued expenses		18.9			19.2
Accrued payroll and related expenses		10.0			10.7
Accounts payable		13.2			13.3
Deferred revenue		13.4			8.5
Deferred tax liability		0.7			1.0
Total current liabilities		99.7			107.2
NON-CURRENT LIABILITIES:
Long-term debt		935.0			892.0
Deferred tax liability		52.0			54.2
Payable to founding members under tax receivable agreement		145.4			146.7
Total non-current liabilities		1,132.4			1,092.9
Total liabilities		1,232.1			1,200.1
COMMITMENTS AND CONTINGENCIES (NOTE 6)
EQUITY/(DEFICIT):
NCM, Inc. Stockholders’ Equity/(Deficit):
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued and    outstanding, respectively		—			—
Common stock, $0.01 par value; 175,000,000 shares authorized, 59,012,038 and    58,750,926 issued and outstanding, respectively		0.6			0.6
Additional paid in capital/(deficit)		(248.2	)		(261.0	)
Retained earnings (distributions in excess of earnings)		(173.5	)		(147.4	)
Accumulated other comprehensive income/(loss)		-			(0.4	)
Total NCM, Inc. stockholders’ equity/(deficit)		(421.1	)		(408.2	)
Noncontrolling interests		199.5			199.5
Total equity/(deficit)		(221.6	)		(208.7	)
TOTAL LIABILITIES AND EQUITY/DEFICIT	$	1,010.5		$	991.4

See accompanying notes to Condensed Consolidated Financial Statements.

2

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except share and per share data)

(UNAUDITED)

	Three Months Ended						Six Months Ended
	July 2, 2015			June 26, 2014			July 2, 2015			June 26, 2014
REVENUE:
Advertising (including revenue from founding members    of  $9.0, $9.8, $16.7 and $19.3, respectively)	$	121.5		$	99.9		$	198.4		$	170.1
OPERATING EXPENSES:
Advertising operating costs		8.3			6.6			14.1			11.6
Network costs		4.2			4.4			8.7			9.0
Theatre access fees—founding members		19.2			17.9			36.4			35.3
Selling and marketing costs		17.0			14.1			33.0			29.1
Merger termination fee and related merger costs		0.9			1.7			34.3			1.7
Administrative and other costs		8.3			7.1			17.0			14.7
Depreciation and amortization		8.2			7.8			16.2			15.6
Total		66.1			59.6			159.7			117.0
OPERATING INCOME		55.4			40.3			38.7			53.1
NON-OPERATING EXPENSES:
Interest on borrowings		13.1			13.0			26.2			26.1
Interest income		(0.3	)		(0.5	)		(0.9	)		(0.9	)
Accretion of interest on the discounted payable to    founding members under tax receivable agreement		3.5			3.5			7.1			7.3
Amortization of terminated derivatives		-			2.5			1.6			5.0
Other non-operating expense		-			0.1			0.1			0.2
Total		16.3			18.6			34.1			37.7
INCOME BEFORE INCOME TAXES		39.1			21.7			4.6			15.4
Income tax expense		5.8			3.8			1.5			2.1
CONSOLIDATED NET INCOME		33.3			17.9			3.1			13.3
Less:  Net income attributable to noncontrolling    interests		23.2			14.3			2.0			12.8
NET INCOME ATTRIBUTABLE TO NCM, INC.	$	10.1		$	3.6		$	1.1		$	0.5
NET INCOME PER NCM, INC. COMMON SHARE:
Basic	$	0.17		$	0.06		$	0.02		$	0.01
Diluted	$	0.17		$	0.06		$	0.02		$	0.01
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		58,974,581			58,722,025			58,931,628			58,670,412
Diluted		59,595,019			59,000,127			59,360,245			59,006,383
Dividends declared per common share	$	0.22		$	0.22		$	0.44		$	0.94

See accompanying notes to Condensed Consolidated Financial Statements.

3

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

(UNAUDITED)

	Three Months Ended				Six Months Ended
	July 2, 2015		June 26, 2014		July 2, 2015		June 26, 2014
CONSOLIDATED NET INCOME, NET OF TAX OF    $5.8, $3.8, 1.5 AND $2.1, RESPECTIVELY	$	33.3	$	17.9	$	3.1	$	13.3
OTHER COMPREHENSIVE INCOME, NET OF TAX:
Amortization of terminated derivatives, net of tax of    $0.0, $0.5, $0.3 and $0.9, respectively		—		2.0		1.3		4.1
CONSOLIDATED COMPREHENSIVE INCOME		33.3		19.9		4.4		17.4
Less: Comprehensive income attributable to noncontrolling    interests		—		15.6		2.9		15.5
COMPREHENSIVEINCOMEATTRIBUTABLETONCM,INC.	$	33.3	$	4.3	$	1.5	$	1.9

See accompanying notes to Condensed Consolidated Financial Statements.

4

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(UNAUDITED)

	Six Months Ended
	July 2, 2015			June 26, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$	3.1		$	13.3
Adjustments to reconcile consolidated net income to net cash provided by    operating activities:
Deferred income tax expense		1.0			9.2
Depreciation and amortization		16.2			15.6
Non-cash share-based compensation		5.9			4.2
Excess tax benefit from share-based compensation		(0.1	)		0.2
Accretion of interest on the discounted payable to founding members    under tax receivable agreement		7.1			7.3
Amortization of terminated derivatives		1.6			5.0
Amortization of debt issuance costs		1.3			1.4
Other		0.6			(0.3	)
Changes in operating assets and liabilities:
Receivables, net		(12.0	)		10.9
Accounts payable and accrued expenses		(1.8	)		(12.8	)
Amounts due to founding members		1.0			3.0
Payment to founding members under tax receivable agreement		(17.2	)		(25.1	)
Deferred revenue		4.9			5.7
Income taxes and other		(1.4	)		(1.0	)
Net cash provided by operating activities		10.2			36.6
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(4.8	)		(5.2	)
Purchases of marketable securities		(40.8	)		(70.2	)
Proceeds from sale and maturities of marketable securities		49.9			81.3
Purchases of intangible assets from network affiliates		(0.9	)		(0.5	)
Net cash provided by investing activities		3.4			5.4
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends		(26.4	)		(55.2	)
Proceeds from borrowings		113.0			63.0
Repayments of borrowings		(70.0	)		(54.0	)
Payment of debt issuance costs		-			(0.1	)
Founding member integration payments		1.1			0.9
Distributions to founding members		(32.9	)		(37.2	)
Excess tax benefit from share-based compensation		0.1			(0.2	)
Proceeds from stock option exercises		1.1			0.8
Repurchase of stock for restricted stock tax withholding		(1.2	)		(1.3	)
Net cash used in financing activities		(15.2	)		(83.3	)
CHANGE IN CASH AND CASH EQUIVALENTS		(1.6	)		(41.3	)
Cash and cash equivalents at beginning of period		13.4			54.7
Cash and cash equivalents at end of period	$	11.8		$	13.4

See accompanying notes to Condensed Consolidated Financial Statements.

5

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(In millions)

(UNAUDITED)

	Six Months Ended
	July 2, 2015		June 26, 2014
Supplemental disclosure of non-cash financing and investing activity:
Purchase of an intangible asset with NCM LLC equity	$	31.4	$	16.4
Accrued distributions to founding members	$	25.1	$	18.4
Increase (decrease) in dividends not requiring cash in the period	$	0.8	$	(0.7	)
Increase in cost and equity method investments	$	1.7	$	—
Supplemental disclosure of cash flow information:
Cash paid for interest	$	24.8	$	24.5
Payments for income taxes, net	$	0.2	$	6.6

See accompanying notes to Condensed Consolidated Financial Statements.

6

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY/(DEFICIT)

(In millions, except share and per share data)

(UNAUDITED)

				NCM, Inc.
											Retained
								Additional			Earnings			Accumulated
								Paid in			(Distribution			Other
				Common Stock				Capital			in Excess of			Comprehensive			Noncontrolling
	Consolidated			Shares		Amount		(Deficit)			Earnings)			Loss			Interest
Balance—January 1, 2015	$	(208.7	)		58,750,926	$	0.6	$	(261.0	)	$	(147.4	)	$	(0.4	)	$	199.5
Distributions to founding members		(25.1	)		—		—		—			—			—			(25.1	)
NCM LLC equity issued for purchase    of intangible asset		31.4			—		—		14.1			—			—			17.3
Income tax and other impacts of NCM    LLC ownership changes		(2.4	)		—		—		(5.4	)		—			—			3.0
Comprehensive income, net of tax		4.4			—		—		—			1.1			0.4			2.9
Share-based compensation issued		1.1			261,112		—		1.1			—			—			—
Share-based compensation    expense/capitalized		4.9			—		—		3.0			—			—			1.9
Cash dividends declared $0.44 per    share		(27.2	)		—		—		—			(27.2	)		—			—
Balance—July 2, 2015	$	(221.6	)		59,012,038	$	0.6	$	(248.2	)	$	(173.5	)	$	(0.0	)	$	199.5
Balance—December 26, 2013	$	(146.1	)		58,519,137	$	0.6	$	(271.7	)	$	(80.0	)	$	(3.2	)	$	208.2
Distributions to founding members		(24.6	)		—		—		—			—			—			(24.6	)
NCM LLC equity returned for purchase    of intangible asset		16.4			—		—		7.5			—			—			8.9
Income tax and other impacts of NCM    LLC ownership changes		(0.8	)		—		—		(2.4	)		—			—			1.6
Comprehensive income, net of tax		17.4			—		—		—			0.5			1.4			15.5
Share-based compensation issued		(0.5	)		223,052		—		(0.5	)		—			—			—
Share-based compensation    expense/capitalized		4.2			—		—		2.9			—			—			1.3
Excess tax benefit from share-based    compensation		0.2			—		—		0.2			—			—			—
Cash dividends declared $0.94 per    share		(54.5	)		—		—		—			(54.5	)		—			—
Balance—June 26, 2014	$	(188.3	)		58,742,189	$	0.6	$	(264.0	)	$	(134.0	)	$	(1.8	)	$	210.9

See accompanying notes to Condensed Consolidated Financial Statements.

7

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. THE COMPANY

Description of Business

National CineMedia, Inc. (“NCM, Inc.”) was incorporated in Delaware as a holding company with the sole purpose of becoming a member and sole manager of National CineMedia, LLC (“NCM LLC”), a limited liability company owned by NCM, Inc., American Multi-Cinema, Inc. and AMC ShowPlace Theatres, Inc. (“AMC”), wholly owned subsidiaries of AMC Entertainment, Inc., Regal Cinemas, Inc. and Regal CineMedia Holdings, LLC, wholly owned subsidiaries of Regal Entertainment Group (“Regal”) and Cinemark Media, Inc. and Cinemark USA, Inc., wholly owned subsidiaries of Cinemark Holdings, Inc. (“Cinemark”).  The terms “NCM”, “the Company” or “we” shall, unless the context otherwise requires, be deemed to include the consolidated entity.  AMC, Regal and Cinemark and their affiliates are referred to in this document as “founding members”.  The Company operates the largest digital in-theatre network in North America, allowing NCM LLC to sell advertising (the “Services”) under long-term exhibitor services agreements (“ESAs”) with the founding members and certain third-party theatre circuits (known as “network affiliates”) under long-term network affiliate agreements, which have terms from three to twenty years.

As of July 2, 2015, NCM LLC had 130,716,532 common membership units outstanding, of which 59,012,038 (45.2%) were owned by NCM, Inc., 26,409,784 (20.2%) were owned by Regal, 25,631,046 (19.6%) were owned by Cinemark and 19,663,664 (15.0%) were owned by AMC. The membership units held by the founding members are exchangeable into NCM, Inc. common stock on a one-for-one basis.

Recent Transactions

On May 5, 2014, NCM, Inc. entered into an Agreement and Plan of Merger (the “Merger Agreement”) to merge with Screenvision, LLC (“Screenvision”).  On November 3, 2014, the Department of Justice filed a lawsuit seeking to enjoin the merger.  On March 16, 2015, the Company announced the termination of the Merger Agreement and the lawsuit was dismissed.  After the Merger Agreement was terminated, NCM LLC reimbursed NCM, Inc. for certain expenses pursuant to an indemnification agreement among NCM LLC, NCM, Inc. and the founding members.  On March 17, 2015, NCM LLC paid Screenvision an approximate $26.8 million termination payment on behalf of NCM, Inc. This payment was $2 million lower than the reverse termination fee contemplated by the Merger Agreement.  During the six months ended July 2, 2015, NCM LLC also either paid directly or reimbursed NCM, Inc. for the legal and other merger-related costs of approximately $15.0 million ($7.5 million incurred by NCM, Inc. during the year ended January 1, 2015 and approximately $7.5 million incurred by NCM LLC during the six months ended July 2, 2015). The Company and the founding members each bore a pro rata portion of the merger termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC.

Basis of Presentation

The Company has prepared the unaudited Condensed Consolidated Financial Statements and related notes of NCM, Inc. in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”).  Accordingly, certain information and footnote disclosures typically included in an annual report have been condensed or omitted for this quarterly report.  The balance sheet as of January 1, 2015 is derived from the audited financial statements of NCM, Inc.  Therefore, the unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s annual report on Form 10-K filed for the fiscal year ended January 1, 2015.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly in all material respects the financial position, results of operations and cash flows for all periods presented have been made.  The Company’s business is seasonal and for this and other reasons operating results for interim periods may not be indicative of the Company’s full year results or future performance. As a result of the various related party agreements discussed in Note 4—Related Party Transactions, the operating results as presented are not necessarily indicative of the results that might have occurred if all agreements were with non-related third parties.  The Company manages its business under one reportable segment: advertising.

8

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Estimates—The preparation of the financial statements 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to the reserve for uncollectible accounts receivable, share-based compensation and income taxes. Actual results could differ from those estimates.

Significant Accounting Policies

The Company’s annual financial statements included in its Form 10-K filed for the fiscal year ended January 1, 2015 contain a complete discussion of the Company’s significant accounting policies. Following is additional information related to the Company’s accounting policies.

Concentration of Credit Risk and Significant Customers—Bad debts are provided for using the allowance for doubtful accounts method based on historical experience and management’s evaluation of outstanding receivables at the end of the period. Receivables are written off when management determines amounts are uncollectible. Trade accounts receivable are uncollateralized and represent a large number of geographically dispersed debtors. The collectability risk with respect to national and regional advertising is reduced by the fact that the majority of accounts receivable are with large, national advertising agencies that have strong reputations in the advertising industry and clients with stable financial positions. The Company has smaller contracts with thousands of local clients that are not individually significant.  As of July 2, 2015 and January 1, 2015, there were no advertising agency groups or individual customers through which the Company sources national advertising revenue representing more than 10% of the Company’s outstanding gross receivable balance.  During the three and six months ended July 2, 2015 and the three months ended June 26, 2014, there were no customers that accounted for more than 10% of revenue. During the six months ended June 26, 2014, revenue related to advertisements of NCM LLC’s founding members’ beverage supplier accounted for 11.3% of total revenue.

Share-Based Compensation—The Company has issued stock options and restricted stock to certain employees and restricted stock units to its independent directors. In 2015 and 2014, the Company did not grant stock options.  In 2015 and 2014, the restricted stock grants for Company officers vest upon the achievement of Company performance measures and/or service conditions, while non-officer grants vest only upon the achievement of service conditions.  Compensation expense of restricted stock that vests upon the achievement of Company performance measures is based on management’s financial projections and the probability of achieving the projections, which require considerable judgment. A cumulative adjustment is recorded to share-based compensation expense in periods that management changes its estimate of the number of shares of restricted stock expected to vest. Ultimately, the Company adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. Dividends are accrued when declared on unvested restricted stock that is expected to vest and are only paid with respect to shares that actually vest.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, 16,146, 3,672, 254,461 and 251,660 shares of restricted stock and restricted stock units vested, respectively.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, 57,890, 23,559, 90,405 and 52,447 stock options were exercised at a weighted average exercise price of $12.15, $12.73, $12.18 and $13.74 per share, respectively.

In connection with the Company’s March 2014 special cash dividend of $0.50 per share and pursuant to the antidilution adjustment terms of the Company’s Equity Incentive Plan, the exercise price and the number of shares of common stock subject to options held by the Company’s employees were adjusted to prevent dilution and restore their economic value that existed immediately before the special dividend.  The antidilution adjustments made with respect to such options resulted in a decrease in the range of exercise prices from $5.35 - $24.68 per share to $5.18 - $23.90 per share and an increase in the aggregate number of shares issuable upon exercise of such options by 98,589 shares, or 3.3%, of previously outstanding options.  The number of shares authorized under the Equity Incentive Plan increased by an equivalent number of shares.  There were no accounting consequences for the changes made to reduce the exercise prices and increase the number of underlying options as a result of the special cash dividend because the aggregate fair values of the awards immediately before and after the modifications were the same.

Consolidation—NCM, Inc. consolidates the accounts of NCM LLC under the provisions of ASC 810, Consolidation (“ASC 810”).  Under ASC 810, a managing member of a limited liability company (“LLC”) is presumed to control the LLC, unless the non-managing members have the right to dissolve the entity or remove the managing member without cause, or if the non-managing members have substantive participating rights.  The non-managing members of NCM LLC do not have dissolution rights or removal rights.  NCM, Inc. has evaluated the provisions of the NCM LLC membership agreement and

9

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

has concluded that the various rights of the non-managing members are not substantive participation rights under ASC 810, as they do not limit NCM, Inc.’s ability to make decisions in the ordinary course of business.

The following table presents the changes in NCM, Inc.’s equity resulting from net income attributable to NCM, Inc. and transfers to or from noncontrolling interests (in millions):

	Six Months Ended
	July 2, 2015			June 26, 2014
Net income attributable to NCM, Inc.	$	1.1		$	0.5
NCM LLC equity issued for purchase of intangible asset		14.1			7.5
Income tax and other impacts of subsidiary ownership    changes		(5.4	)		(2.4	)
Change from net income attributable to NCM, Inc. and    transfers from noncontrolling interests	$	9.8		$	5.6

Income Taxes—Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements.  Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740, Income Taxes.  The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized, which will be assessed on an on-going basis.   In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities.  The Company follows ASC 740-10-25, which requires the use of a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions.  Only tax positions that meet the more likely than not recognition threshold are recognized.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This guidance will be effective for annual periods beginning after December 15, 2017 and early adoption is permitted no earlier than fiscal years beginning after December 15, 2016. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its unaudited Condensed Consolidated Financial Statements or notes thereto, as well as, which transition method it intends to use.

In January 2015, the FASB issued Accounting Standards Update 2015-01, Income Statement Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”), which eliminates the concept of extraordinary items from GAAP.  Under ASU 2015-01, reporting entities will no longer be required to assess whether an underlying event or transaction is extraordinary, however, presentation and disclosure guidance for items that are unusual in nature or occur infrequently are retained, and are expanded to include items that are both unusual in nature and infrequently occurring.  This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  A reporting entity may apply ASU 2015-01 prospectively.  A reporting entity may also apply ASU 2015-01 retrospectively to all periods presented in the financial statements. The Company expects to adopt this accounting guidance in its first quarter of 2016 and does not expect the application of ASU 2015-01 to have a material impact in the unaudited Condensed Consolidated Financial Statements or notes thereto.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”).  ASU 2015-02 amends current consolidation guidance by modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with variable interest entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect the application of ASU 2015-02 to have a material impact in the unaudited Condensed Consolidated Financial Statements or notes thereto.

In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which provides guidance for simplifying the presentation of debt issuance costs.  ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums.  This guidance will be effective for fiscal years beginning after December 15, 2015, and early adoption is permitted for financial statements that have not been previously issued. The standard requires application on a retrospective basis and represents a change in accounting principle. The Company expects to adopt this accounting guidance in its first quarter of 2016 and will present debt issuance costs as a reduction of debt, rather than an asset.

In April 2015, the FASB issued Accounting Standards Update 2015-05, “Intangibles-Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”), which provides guidance on accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. The Company does not expect the application of ASU 2015-05 to have a material impact in the unaudited Condensed Consolidated Financial Statements or notes thereto. 

2. INCOME PER SHARE

Basic income per share is computed on the basis of the weighted average number of common shares outstanding.  Diluted income per share is computed on the basis of the weighted average number of common shares outstanding plus the effect of potentially dilutive common stock options, restricted stock and restricted stock units using the treasury stock method.  The components of basic and diluted income per NCM, Inc. share are as follows:

	Three Months Ended				Six Months Ended
	July 2, 2015		June 26, 2014		July 2, 2015		June 26, 2014
Net income attributable to NCM, Inc. (in millions)	$	10.1	$	3.6	$	1.1	$	0.5
Weighted average shares outstanding:
Basic		58,974,581		58,722,025		58,931,628		58,670,412
Add: Dilutive effect of stock options and    restricted stock		620,438		278,102		428,617		335,971
Diluted	$	59,595,019	$	59,000,127	$	59,360,245	$	59,006,383
Income per NCM, Inc. share:
Basic	$	0.17	$	0.06	$	0.02	$	0.01
Diluted	$	0.17	$	0.06	$	0.02	$	0.01

The effect of 71,704,494, 69,543,579, 70,814,007 and 69,059,399 exchangeable NCM LLC common units held by the founding members for the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, respectively, have been excluded from the calculation of diluted weighted average shares and earnings per NCM, Inc. share as they were antidilutive.  NCM LLC common units do not participate in NCM, Inc. dividends.  In addition, there were 16,810 and 84,891, 61,329 and 164,038 stock options and non-vested (restricted) shares for the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, respectively, excluded from the calculation as they were antidilutive, primarily because exercise prices were above the average market value.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

3. INTANGIBLE ASSETS

In accordance with NCM LLC’s Common Unit Adjustment Agreement with its founding members, on an annual basis NCM LLC determines the amount of common membership units to be issued to or returned by the founding members based on theatre additions or dispositions during the previous year.  During the first quarter of 2015 and 2014, NCM LLC issued 2,160,915 and 1,087,911 common membership units to its founding members, respectively, for the rights to exclusive access to the theatre screens and attendees added, net of dispositions by the founding members to NCM LLC’s network during the previous year.  NCM LLC recorded a net intangible asset of $31.4 million and $16.4 million during the three months ended April 2, 2015 and March 27, 2014, respectively, as a result of the Common Unit Adjustments.

In addition, NCM LLC’s Common Unit Adjustment Agreement requires that a Common Unit Adjustment occur for a specific founding member if its acquisition or disposition of theatres, in a single transaction or cumulatively since the most recent Common Unit Adjustment, results in an attendance increase or decrease in excess of two percent of the annual total attendance at the prior adjustment date.  If an existing on-screen advertising agreement with an alternative provider is in place with respect to any acquired theatres, the founding members may elect to receive common membership units related to those encumbered theatres in connection with the Common Unit Adjustment.  If the founding members make this election, then they are required to make payments on a quarterly basis in arrears in accordance with certain run-out provisions pursuant to the ESAs (“integration payments”). During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, the Company recorded a reduction to net intangible assets of $0.8 million, $0.6 million, $1.1 million and $0.8 million respectively, related to integration payments due from AMC and Cinemark related to their acquisitions of theatres from Rave Cinemas that are encumbered by an existing on-screen advertising agreement with an alternative provider.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, AMC and Cinemark paid a total of $0.3 million, $0.2 million, $1.1 million, and $0.9 million respectively, in integration payments.

The Company’s intangible assets with its founding members are recorded at the fair market value of NCM, Inc.’s publicly traded stock as of the date on which the common membership units were issued.  The NCM LLC common membership units are fully convertible into NCM, Inc.’s common stock. In addition, the Company records intangible assets for up-front fees paid to network affiliates upon commencement of a network affiliate agreement. The Company’s intangible assets have a finite useful life and the Company amortizes the assets over the remaining useful life corresponding with the ESAs or the term of the network affiliate agreement.  If common membership units are issued to a founding member for newly acquired theatres that are subject to an existing on-screen advertising agreement with an alternative provider, the amortization of the intangible asset commences after the existing agreement expires and NCM LLC can utilize the theatres for all of its services.  Integration payments are calculated based upon the advertising cash flow that the Company would have generated if it had exclusive access to sell advertising in the theatres with pre-existing advertising agreements.

4.  RELATED PARTY TRANSACTIONS

Founding Member Transactions—In connection with NCM, Inc.’s initial public offering (“IPO”), the Company entered into several agreements to define and regulate the relationships among NCM, Inc., NCM LLC and the founding members. They include the following:

· ESAs. Under the ESAs, NCM LLC is the exclusive provider within the United States of advertising services in the founding members’ theatres (subject to pre-existing contractual obligations and other limited exceptions for the benefit of the founding members). The advertising services include the on-screen advertising of the FirstLook pre-show, use of the lobby entertainment network (“LEN”) and lobby promotions. Further, some advertising in the FirstLook pre-show is sold to NCM LLC’s founding members to be used to satisfy the founding members’ on-screen advertising commitments under their beverage concessionaire agreements. In consideration for access to the founding members’ theatre attendees for on-screen advertising and use of the founding members’ theatres for the LEN and lobby promotions, the founding members receive a monthly theatre access fee.

· Common Unit Adjustment Agreement. The common unit adjustment agreement provides a mechanism for adjusting membership units held by the founding members based on increases or decreases in the number of screens operated by each founding member.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

· Tax Receivable Agreement. The tax receivable agreement provides for the effective payment by NCM, Inc. to the founding members of 90% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that is actually realized as a result of certain increases in NCM, Inc.’s proportionate share of tax basis in NCM LLC’s tangible and intangible assets resulting from the IPO and related transactions.

· Software License Agreement. At the date of the Company’s IPO, NCM LLC was granted a perpetual, royalty-free license from NCM LLC’s founding members to use certain proprietary software that existed at the time for the delivery of digital advertising and other content through the digital content network (“DCN”) to screens in the U.S. NCM LLC has made improvements to this software since the IPO date and NCM LLC owns those improvements, except for improvements that were developed jointly by NCM LLC and NCM LLC’s founding members, if any.

The following tables provide summaries of the transactions between the Company and the founding members (in millions):

	Three Months Ended				Six Months Ended
Included in the Condensed Consolidated Statements of Income:	July 2, 2015		June 26, 2014		July 2, 2015		June 26, 2014
Revenue:
Beverage concessionaire revenue (included in    advertising revenue) (1)	$	9.0	$	9.8	$	16.6	$	19.2
Advertising inventory revenue (included in    advertising revenue) (2)		—		—		0.1		0.1
Operating expenses:
Theatre access fee (3)		19.2		17.9		36.4		35.3
Purchase of movie tickets and concession    products and rental of theatre space (included    in selling and marketing costs) (4)		0.3		0.3		0.5		0.5
Purchase of movie tickets and concession    products and rental of theatre space (included    in other administrative and other costs)		0.1		—		0.1		—
Non-operating expenses:
Interest income from notes receivable (included    in interest income) (5)		0.2		0.3		0.5		0.6

(1) For the three and six months ended July 2, 2015 and June 26, 2014, the founding members purchased 60 seconds of on-screen advertising time (with a right to purchase up to 90 seconds) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a rate specified by the ESA at a 30 second equivalent cost per thousand (“CPM”).

(2) The value of such purchases is calculated by reference to NCM LLC’s advertising rate card.

(3) Comprised of payments per theatre attendee and payments per digital screen with respect to the founding member theatres included in the Company’s network, including payments for access to higher quality digital cinema equipment.

(4) Used primarily for marketing to NCM LLC’s advertising clients.

(5) On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (AC JV, LLC) owned 32% by each of the founding members and 4% by NCM LLC.  In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member).  The notes bear interest at a fixed rate of 5.0% per annum, compounded annually.  Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	As of
Included in the Condensed Consolidated Balance Sheets:	July2,2015		January1,2015
Purchase of movie tickets and concession    products (included in Prepaid expenses) (1)	$	0.4	$	—
Current portion of notes receivable - founding    members (2)		4.2		4.2
Long-term portion of notes receivable -    founding members (2)		16.6		16.6
Interest receivable on notes receivable (included    in other current assets) (2)		0.5		—
Common unit adjustments and integration    payments, net of amortization (included in    intangible assets) (3)		478.6		458.3
Current payable to founding members under tax    receivable agreement (4)		15.4		19.6
Long-term payable to founding members under    tax receivable agreement (4)		145.4		146.7

(1) Used primarily for marketing to NCM LLC’s advertising clients.

(2) Refer to the discussion of notes receivable from the founding members above.

(3) Refer to Note 3—Intangible Assets for further information on common unit adjustments and integration payments.

(4) The Company paid the founding members $17.2 million in the first quarter of 2015, of which $0.9 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $16.3 million was for the 2014 tax year.  The Company paid the founding members $25.1 million in the first quarter of 2014, of which $6.7 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $18.4 million was for the 2013 tax year.

On March 16, 2015, the Company announced the termination of the Merger Agreement with Screenvision.  After the Merger Agreement was terminated, NCM LLC reimbursed NCM, Inc. for certain expenses pursuant to an indemnification agreement among NCM LLC, NCM, Inc. and the founding members.  On March 17, 2015, NCM LLC paid Screenvision an approximate $26.8 million termination payment on behalf of NCM, Inc. This payment was $2 million lower than the reverse termination fee contemplated by the Merger Agreement.  During the six months ended July 2, 2015, NCM LLC also either paid directly or reimbursed NCM, Inc. for the legal and other merger-related costs of approximately $15.0 million ($7.5 million incurred by NCM, Inc. during the year ended January 1, 2015 and approximately $7.5 million incurred by NCM LLC during the six months ended July 2, 2015). The Company and the founding members each bore a pro rata portion of the termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC.

Pursuant to the terms of the NCM LLC Operating Agreement in place since the completion of the Company’s IPO, NCM LLC is required to make mandatory distributions on a proportionate basis to its members of available cash, as defined in the NCM LLC Operating Agreement, on a quarterly basis in arrears.  Mandatory distributions of available cash for the three and six months ended July 2, 2015 and June 26, 2014 were as follows (in millions):

	Three Months Ended				Six Months Ended
	July2,2015		June26,2014		July2,2015		June26,2014
AMC	$	6.9	$	5.1	$	6.9	$	6.8
Cinemark		9.0		6.5		9.0		8.7
Regal		9.2		6.8		9.2		9.1
Total founding members		25.1		18.4		25.1		24.6
NCM, Inc.		20.7		15.6		20.7		20.9
Total	$	45.8	$	34.0	$	45.8	$	45.5

Due to the merger termination fee and related merger expenses, the mandatory distributions of available cash by NCM LLC to its founding members and NCM, Inc. for the three months ended April 2, 2015 was calculated as negative $25.5 million ($14.0 million for the founding members and $11.5 million for NCM, Inc.).  Therefore, there was no distribution made in the second quarter of 2015 relating to the available cash produced during the three months ended April 2, 2015.  Under the terms of the NCM LLC Operating Agreement, this negative amount will be netted against the available cash

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

distributions for the second quarter of 2016, which will be paid in the third quarter of 2016.  Until the settlement in the third quarter of 2016, the remaining merger-related costs will be funded through borrowings on the NCM LLC revolving credit facility. 

The mandatory distributions of available cash by NCM LLC to its founding members for the three months ended July 2, 2015 of $25.1 million is included in amounts due to founding members on the unaudited Condensed Consolidated Balance Sheets as of July 2, 2015 and will be made in the third quarter of 2015.

Amounts due to founding members as of July 2, 2015 were comprised of the following (in millions):

	AMC			Cinemark			Regal		Total
Theatre access fees, net of beverage revenues	$	1.2			1.1			1.5	$	3.8
Cost and other reimbursement		(0.6	)		(0.3	)		0.1		(0.8	)
Distributions payable to founding members		6.9			9.0			9.2		25.1
Total amounts due to founding members	$	7.5		$	9.8		$	10.8	$	28.1

Amounts due to founding members as of January 1, 2015 were comprised of the following (in millions):

	AMC			Cinemark			Regal		Total
Theatre access fees, net of beverage revenues	$	0.8			0.8			1.2	$	2.8
Cost and other reimbursement		(0.6	)		(0.2	)		—		(0.8	)
Distributions payable to founding members		9.1			11.6			12.2		32.9
Total amounts due to founding members	$	9.3		$	12.2		$	13.4	$	34.9

AC JV, LLC Transactions—In December 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company, AC JV, LLC, owned 32% by each of the founding members and 4% by NCM LLC.  The Company accounts for its investment in AC JV, LLC under the equity method of accounting in accordance with ASC 323-30, Investments—Equity Method and Joint Ventures (“ASC 323-30”) because AC JV, LLC is a limited liability company with the characteristics of a limited partnership and ASC 323-30 requires the use of equity method accounting unless the Company’s interest is so minor that it would have virtually no influence over partnership operating and financial policies.  Although NCM LLC does not have a representative on AC JV, LLC’s Board of Directors or any voting, consent or blocking rights with respect to the governance or operations of AC JV, LLC, the Company concluded that its interest was more than minor under the accounting guidance.   The Company’s investment in AC JV, LLC was $1.4 million and $1.3 million as of July 2, 2015 and January 1, 2015, respectively.  Equity in earnings from AC JV, LLC was $0.0 million, $0.1 million, $0.1 million and $0.1 million for the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, respectively and is included in non-operating expenses in the unaudited Condensed Consolidated Statements of Income.

Related Party Affiliates—NCM LLC enters into network affiliate agreements with network affiliates for NCM LLC to provide in-theatre advertising at theatre locations that are owned by companies that are affiliates of certain of the founding members or directors of NCM, Inc.  Related party affiliate agreements are entered into at terms that are similar to those of the Company’s other network affiliates.  

NCM LLC has an agreement with LA Live, an affiliate of The Anschutz Corporation.  The Anschutz Corporation is a wholly-owned subsidiary of the Anschutz Company, which is the controlling stockholder of Regal.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, there was approximately $0.0 million, $0.1 million $0.1 million and $0.1 million, respectively, included in advertising operating costs related to LA Live, and there was approximately $0.1 million and $0.1 million of accounts payable with this company as of July 2, 2015 and January 1, 2015, respectively.

NCM LLC has an agreement with Starplex Operating L.P. (“Starplex”), an affiliate of one of NCM, Inc.’s former directors, who was a long-standing member of NCM, Inc.’s board of directors until his resignation during 2014.  During the three and six months ended June 26, 2014, there was approximately $0.8 million and $1.3 million included in advertising operating costs related to Starplex, and there was approximately $0.9 million of accounts payable with Starplex as of January

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NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1, 2015.  Following the director’s resignation from NCM, Inc.’s board of directors in 2014, Starplex is no longer a related party.

Other Transactions—NCM LLC has an agreement with an interactive media company to sell some of its online inventory.  One of NCM, Inc.’s directors is also a director of this media company.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, this company generated approximately $0.0 million, $0.1 million, $0.0 million and $0.2 million, respectively, in revenue for NCM LLC and there was approximately $0.3 million and $0.3 million of accounts receivable due from this company as of July 2, 2015 and January 1, 2015, respectively.

NCM LLC has an agreement with AEG Live, an affiliate of The Anschutz Corporation, for AEG Live to showcase musical artists in NCM LLC’s FirstLook preshow.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, NCM LLC received approximately $0.5 million, $0.0 million, $0.9 million and $0.0 million, respectively, in revenue from AEG Live and as of July 2, 2015 and January 1, 2015, had $0.0 million and $0.4 million, respectively, of accounts receivable from AEG Live.

5.  BORROWINGS

The following table summarizes NCM LLC’s total outstanding debt as of July 2, 2015 and January 1, 2015 and the significant terms of its borrowing arrangements (in millions):

	OutstandingBalanceasof
Borrowings	July 2, 2015		January 1, 2015		Maturity Date	Interest Rate
Revolving Credit Facility	$	65.0	$	22.0	November26,2019	(1)
Term Loans		270.0		270.0	November26,2019	(1)
Senior Unsecured Notes		200.0		200.0	July15,2021		7.875%
Senior Secured Notes		400.0		400.0	April15,2022		6.000%
Total	$	935.0	$	892.0

(1) The interest rates on the revolving credit facility and term loan are described below.

Senior Secured Credit Facility—As of July 2, 2015 and January 1, 2015, NCM LLC’s senior secured credit facility consisted of a $135.0 million revolving credit facility and a $270.0 million term loan.

Revolving Credit Facility—The revolving credit facility portion of NCM LLC’s total borrowings is available, subject to certain conditions, for general corporate purposes of NCM LLC in the ordinary course of business and for other transactions permitted under the senior secured credit facility, and a portion is available for letters of credit.  As of July 2, 2015, NCM LLC’s total availability under the revolving credit facility was $70.0 million.  The unused line fee is 0.50% per annum.  Borrowings under the revolving credit facility bear interest at NCM LLC’s option of either the LIBOR index plus an applicable margin or the base rate (Prime Rate or the Federal Funds Effective Rate, as defined in the senior secured credit facility) plus an applicable margin. The applicable margin for the revolving credit facility is determined quarterly and is subject to adjustment based upon a consolidated net senior secured leverage ratio for NCM LLC (the ratio of secured funded debt less unrestricted cash and cash equivalents, over a non-GAAP measure defined in the senior secured credit facility).  The weighted-average interest rate on the outstanding balance on the revolving credit facility as of July 2, 2015 was 2.57%.

Term Loans—The interest rate on the term loans is a rate chosen at NCM LLC’s option of either the LIBOR index plus 2.75% or the base rate (Prime Rate or the Federal Funds Effective Rate, as defined in the senior secured credit facility) plus 1.75%.  The weighted-average interest rate on the term loans as of July 2, 2015 was 2.94%.  Interest on the term loans is currently paid monthly.

The senior secured credit facility contains a number of covenants and financial ratio requirements, with which NCM LLC was in compliance as of July 2, 2015, including maintaining a consolidated net senior secured leverage ratio of equal to or less than 6.5 times on a quarterly basis.  In addition, there are no borrower distribution restrictions as long as NCM LLC’s

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

consolidated net senior secured leverage ratio is below 6.5 times and NCM LLC is in compliance with its debt covenants.  As of July 2, 2015, NCM LLC’s consolidated net senior secured leverage ratio was 3.3 times (versus the covenant of 6.5 times).

Senior Unsecured Notes due 2021—On July 5, 2011, NCM LLC completed a private placement of $200.0 million in aggregate principal amount of 7.875% Senior Unsecured Notes (“Senior Unsecured Notes”) for which the registered exchange offering was completed on September 22, 2011. The Senior Unsecured Notes pay interest semi-annually in arrears on January 15 and July 15 of each year, which commenced January 15, 2012.  The notes are subordinated to all existing and future secured debt, including indebtedness under NCM LLC’s existing senior secured credit facility and the Senior Secured Notes defined below. The Senior Unsecured Notes contain certain non-maintenance covenants with which NCM LLC was in compliance as of July 2, 2015.

Senior Secured Notes due 2022—On July 27, 2012, NCM LLC completed a private placement of $400.0 million in aggregate principal amount of 6.00% Senior Secured Notes (the “Senior Secured Notes”) for which the registered exchange offering was completed on November 26, 2012.  The Senior Secured Notes pay interest semi-annually in arrears on April 15 and October 15 of each year, which commenced October 15, 2012.  The Senior Secured Notes are senior secured obligations of NCM LLC, rank the same as NCM LLC’s senior secured credit facility, subject to certain exceptions, and share in the same collateral that secures NCM LLC’s obligations under the senior secured credit facility.  The Senior Secured Notes contain certain non-maintenance covenants with which NCM LLC was in compliance as of July 2, 2015.

6. COMMITMENTS AND CONTINGENCIES

Legal Actions—The Company is subject to claims and legal actions in the ordinary course of business.  The Company believes such claims will not have a material effect on its financial position, results of operations or cash flows.

Minimum Revenue Guarantees―As part of the network affiliate agreements entered into in the ordinary course of business under which the Company sells advertising for display in various network affiliate theatre chains, the Company has agreed to certain minimum revenue guarantees on a per attendee basis. If a network affiliate achieves the attendance set forth in their respective agreement, the Company has guaranteed minimum revenue for the network affiliate per attendee if such amount paid under the revenue share arrangement is less than its guaranteed amount.  The amount and term varies for each network affiliate, but terms range from three to 20 years, prior to any renewal periods of which some are at the option of the Company.  As of July 2, 2015, the maximum potential amount of future payments the Company could be required to make pursuant to the minimum revenue guarantees is $32.3 million over the remaining terms of the network affiliate agreements, which calculation does not include any potential future extensions.  As of July 2, 2015, the Company had no liabilities recorded for these obligations as such guarantees are less than the expected share of revenue paid to the affiliate.  As of January 1, 2015, the Company had an inconsequential amount of liabilities recorded for these obligations.

Income Taxes―The Company is subject to taxation in the U.S. and various states.  As of July 2, 2015 and January 1, 2015, there was no material liability or expense for the periods then ended recorded for payment of interest and penalties associated with uncertain tax positions or material unrecognized tax positions and the Company’s unrecognized tax benefits were not material.

7.  FAIR VALUE MEASUREMENTS

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

17

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Non-Recurring Measurements—Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These assets include long-lived assets, intangible assets, cost and equity method investments, notes receivable and borrowings.

Long-Lived Assets, Intangible Assets, Other Investments and Notes Receivable—The Company regularly reviews long-lived assets (primarily property, plant and equipment), intangible assets, investments accounted for under the cost or equity method and notes receivable for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. When the estimated fair value is determined to be lower than the carrying value of the asset, an impairment charge is recorded to write the asset down to its estimated fair value.

Other investments consisted of the following (in millions):

	As of
	July2,2015		January1,2015
Investment in AC JV, LLC (1)	$	1.4	$	1.3
Other investments (2)		2.9		1.2
Total	$	4.3	$	2.5

(1) Refer to Note 4—Related Party Transactions.

(2) During 2014 and the first quarter of 2015, the Company received equity securities in privately held companies as consideration for a portion of advertising contracts. The equity securities were accounted for under the cost method and represent an ownership of less than 20%. The Company does not exert significant influence on these companies’ operating or financial activities.

The fair value of the investments has not been estimated as of July 2, 2015 and January 1, 2015 as there were no identified events or changes in the circumstances that had a significant adverse effect on the fair value of the investments and it is not practicable to do so because the equity securities are not in publicly traded companies.  As the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, they have been classified as Level 3 in the fair value hierarchy.

As of July 2, 2015 and January 1, 2015, the Company had notes receivable totaling $20.8 million and $20.8 million, respectively, from its founding members related to the sale of Fathom Events, as described in Note 4—Related Party Transactions. These notes were valued using comparative market multiples.  There were no identified events or changes in circumstances that had a significant adverse effect on the fair value of the notes receivable.  The notes are classified as Level 3 in the fair value hierarchy as the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs.

Borrowings—The carrying amount of the revolving credit facility is considered a reasonable estimate of fair value due to its floating-rate terms. The estimated fair values of the Company’s financial instruments where carrying values do not approximate fair value were as follows (in millions):

	As of July 2, 2015				As of January 1, 2015
	Carrying Value		Fair Value (1)		Carrying Value		Fair Value (1)
Term Loans	$	270.0	$	267.9	$	270.0	$	257.9
Senior Unsecured Notes		200.0		210.8		200.0		210.8
Senior Secured Notes		400.0		415.5		400.0		400.8

(1) The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2.

18

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Recurring Measurements—The fair values of the Company’s assets and liabilities measured on a recurring basis pursuant to ASC 820-10, Fair Value Measurements and Disclosures are as follows (in millions):

			Fair Value Measurements at Reporting Date Using
	Asof July2,2015		QuotedPricesin ActiveMarketsfor IdenticalAssets (Level 1)		SignificantOther Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
ASSETS:
Cash equivalents (1)	$	6.7	$	6.7	$	—	$	—
Short-term marketable securities (2)		16.1		12.4		3.7		—
Long-term marketable securities (2)		41.5		36.7		4.8		—
Total assets	$	64.3	$	55.8	$	8.5	$	—

			Fair Value Measurements at Reporting Date Using
	Asof January1,2015		QuotedPricesin ActiveMarketsfor IdenticalAssets (Level 1)		SignificantOther Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
ASSETS:
Cash equivalents (1)	$	2.5	$	2.5	$	—	$	—
Short-term marketable securities (2)		21.7		9.5		12.2		—
Long-term marketable securities (2)		45.5		41.5		4.0		—
Total assets	$	69.7	$	53.5	$	16.2	$	—

(1) Cash Equivalents—The Company’s cash equivalents are carried at estimated fair value.  Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts and commercial paper with original maturities of three months or less, which are classified as Level 2 and are valued as described below.

(2) Short-Term and Long-Term Marketable Securities—The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds, commercial paper and certificates of deposit are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper and certificates of deposit is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and six months ended July 2, 2015 and June 26, 2014, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income.  Original cost of short-term marketable securities is based on the specific identification method. As of July 2, 2015, there was an inconsequential amount of gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer, and as of January 1, 2015, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer.

19

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The amortized cost basis, aggregate fair value and maturities of the marketable securities the Company held as of July 2, 2015 and January 1, 2015 were as follows:

	As of July 2, 2015
	AmortizedCost Basis (inmillions)		AggregateFair Value (inmillions)		Maturities(1) (inyears)
MARKETABLE SECURITIES:
Short-term municipal bonds	$	12.4	$	12.4		0.5
Short-term certificates of deposit		3.7		3.7		0.5
Total short-term marketable securities		16.1		16.1
Long-term U.S. government treasury bonds		1.2		1.2		2.3
Long-term municipal bonds		1.7		1.7		1.4
Long-term U.S. government agency bonds		33.8		33.8		3.2
Long-term certificates of deposit:
Financial		4.5		4.5		2.4
Industrial		0.3		0.3		2.4
Total long-term marketable securities		41.5		41.5
Total marketable securities	$	57.6	$	57.6

	As of January 1, 2015
	AmortizedCost Basis (inmillions)		AggregateFair Value (inmillions)		Maturities(1) (inyears)
MARKETABLE SECURITIES:
Short-term municipal bonds	$	9.4	$	9.5		0.5
Short-term commercial paper:
Financial		3.4		3.4		—
Industrial		3.3		3.3		0.1
Utility		3.0		3.0		0.2
Short-term certificates of deposit		2.5		2.5		0.6
Total short-term marketable securities		21.6		21.7
Long-term U.S. government treasury bonds		5.1		5.1		2.7
Long-term municipal bonds		0.3		0.3		1.4
Long-term U.S. government agency bonds		36.1		36.1		3.3
Long-term certificates of deposit		4.0		4.0		3.1
Total long-term marketable securities		45.5		45.5
Total marketable securities	$	67.1	$	67.2

(1) Maturities—Securities available for sale include obligations with various contractual maturity dates some of which are greater than one year. The Company considers the securities to be liquid and convertible to cash within 30 days.

8. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

During 2012, NCM LLC terminated interest rate swap agreements that were used to hedge its interest rate risk associated with its term loan.  Following the termination of the swap agreements, the variable interest rate on NCM LLC’s $270.0 million term loan is unhedged and as of July 2, 2015 and January 1, 2015, the Company did not have any outstanding derivative assets or liabilities.  A portion of the breakage fees paid to terminate the swap agreements was for swaps in which the underlying debt remained outstanding.  The balance in AOCI related to these swaps was fixed and was amortized into earnings over the remaining period during which interest payments were hedged, or February 13, 2015.  The Company considered the guidance in ASC 815, Derivatives and Hedging which states that amounts in AOCI shall be reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings.  As of July 2, 2015, there were no amounts outstanding related to these discontinued cash flow hedges.

20

NATIONAL CINEMEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The changes in AOCI by component for the six months ended July 2, 2015 and June 26, 2014 were as follows (in millions):

	Six Months Ended
	July2,2015			June26,2014			Income Statement Location
Balance at beginning of period	$	(0.4	)	$	(3.2	)
Amounts reclassified from AOCI:
Amortization on discontinued cash flow    hedges		1.6			5.0		Amortizationofterminatedderivatives
Total amounts reclassified from AOCI		1.6			5.0
Noncontrolling interest on reclassifications		(0.9	)		(2.7	)
Tax effect on reclassifications		(0.3	)		(0.9	)
Net other comprehensive income		0.4			1.4
Impact of subsidiary ownership changes		—			—
Balance at end of period	$	—		$	(1.8	)

9. SUBSEQUENT EVENT

On August 5, 2015, the Company declared a cash dividend of $0.22 per share (approximately $13.0 million) on each share of the Company’s common stock (not including outstanding restricted stock which will accrue dividends until the shares vest) to stockholders of record on August 20, 2015 to be paid on September 3, 2015.

On August 6, 2015, Kurt C. Hall notified the Board of Directors (“the Board”) of the Company of his intent to resign as President, Chief Executive Officer, Chairman of the Board and a Director of the Company and to resign from all positions he holds at National CineMedia, LLC upon the appointment of his successor CEO.  Mr. Hall’s decision to resign was not a result of any disagreement with the Company on any matters relating to the Company’s operations, policies or practices.

In connection with Mr. Hall’s anticipated resignation, the Company announced that it will implement its Chairman and CEO succession plan. The Board has retained an executive search firm to initiate a search for a new CEO to succeed Mr. Hall.  Upon the appointment of a new CEO, Scott N. Schneider, currently Lead Director of the Company’s Board of Directors, will succeed Mr. Hall as Chairman of the Board and Mr. Hall will continue in a 24-month consulting role as an advisor to the Board and CEO to facilitate a seamless transition and consult on other business matters.

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Some of the information in this Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), as amended.  All statements other than statements of historical facts included in this Form 10-Q, including, without limitation, certain statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, may constitute forward-looking statements.  In some cases, you can identify these “forward-looking statements” by the specific words, including but not limited to “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of those words and other comparable words.  These forward-looking statements involve risks and uncertainties.  Our actual results could differ materially from those indicated in these statements as a result of certain factors as more fully discussed under the heading “Risk Factors” contained in our annual report on Form 10-K for the Company’s fiscal year ended January 1, 2015.  The following discussion and analysis should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto included herein and the audited financial statements and other disclosure included in our annual report on Form 10-K for the Company’s fiscal year ended January 1, 2015. In the following discussion and analysis, the term net income refers to net income attributable to NCM, Inc.

Overview

NCM LLC operates the largest digital in-theatre media network in North America, through which it sells in-theatre and online advertising and promotions. Our revenue is principally derived from the sale of advertising through long-term ESAs with NCM LLC’s founding members (approximately 22 years remaining as of July 2, 2015) and multi-year agreements with network affiliates, which expire at various dates through July 22, 2031.  The weighted average remaining term of the Company’s network affiliate agreements is 6.3 years. The ESAs with the founding members and network affiliate agreements grant NCM LLC exclusive rights in their theatres to sell advertising, subject to limited exceptions. Our advertising FirstLook pre-show and LEN programming are distributed predominantly via satellite through our proprietary DCN. Approximately 97% of the aggregate founding member and network affiliate theatre attendance is generated by theatres connected to our DCN (754 screens receive advertisements on USB drives) and 100% of the FirstLook pre-show is projected on digital projectors (85% digital cinema projectors and 15% LCD projectors).

Management focuses on several measurements that we believe provide us with the necessary ratios and key performance indicators to manage our business, determine how we are performing versus our internal goals and targets, and against the performance of our competitors and other benchmarks in the marketplace in which we operate. Senior executives hold meetings twice per quarter with officers, managers and staff to discuss and analyze operating results and address significant variances to budget and prior year in an effort to identify trends and changes in our business. We focus on many operating metrics including changes in revenue, OIBDA, Adjusted OIBDA and Adjusted OIBDA margin, as defined and discussed in “Non-GAAP Financial Measures” below, as some of our primary measurement metrics. In addition, we monitor our monthly advertising performance measurements, including advertising inventory utilization, advertising pricing (CPM), local and total advertising revenue per attendee, as well as, our free cash flow and related financial leverage and cash balances and revolving credit facility availability to ensure that there is adequate cash availability to fund our working capital needs and debt obligations and current and future dividends declared by our Board of Directors.

Recent Transactions

On May 5, 2014, NCM, Inc. entered into the Merger Agreement to merge with Screenvision.  On November 3, 2014, the Department of Justice filed a lawsuit seeking to enjoin the merger.  On March 16, 2015, the Company announced the termination of the Merger Agreement and the lawsuit was dismissed.  After the Merger Agreement was terminated, NCM LLC reimbursed NCM, Inc. for certain expenses pursuant to an indemnification agreement among NCM LLC, NCM, Inc. and the founding members.  On March 17, 2015, NCM LLC paid Screenvision an approximate $26.8 million termination payment on behalf of NCM, Inc. This payment was $2 million lower than the reverse termination fee contemplated by the Merger Agreement.  During the six months ended July 2, 2015, NCM LLC also either paid directly or reimbursed NCM, Inc. for the legal and other merger-related costs of approximately $15.0 million ($7.5 million incurred by NCM, Inc. during the year ended January 1, 2015 and approximately $7.5 million incurred by NCM LLC during the six months ended July 2, 2015). The Company and the founding members each bore a pro rata portion of the termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC.

Our operating results may be affected by a variety of internal and external factors and trends described more fully in the section entitled “Risk Factors” in our Form 10-K filed with the SEC on February 27, 2015 for the Company’s fiscal year ended January 1, 2015 and Item 1A of this Form 10-Q.

22

Summary Historical and Operating Data

The following table presents operating data and Adjusted OIBDA (dollars in millions, except share and margin data):

	Three Months Ended						Six Months Ended						% Change
	July 2, 2015			June 26, 2014			July 2, 2015			June 26, 2014			Q22015 to Q2 2014			YTD 2015 to YTD 2014
Revenue:
Advertising	$	121.5		$	99.9		$	198.4		$	170.1			21.6	%		16.6	%
Operating expenses:
Advertising		43.9			38.5			82.5			76.0			14.0	%		8.6	%
Network, administrative and unallocated    costs		21.3			19.4			42.9			39.3			9.8	%		9.2	%
Merger termination fee and related merger    costs (1)		0.9			1.7			34.3			1.7		NM			NM
Total		66.1			59.6			159.7			117.0			10.9	%		36.5	%
Operating income		55.4			40.3			38.7			53.1			37.5	%		(27.1	%)
Non-operating expenses		16.3			18.6			34.1			37.7			(12.4	%)		(9.5	%)
Income tax expense		5.8			3.8			1.5			2.1			52.6	%		(28.6	%)
Net income attributable to noncontrolling    interests		23.2			14.3			2.0			12.8			62.2	%		(84.4	%)
Net income attributable to NCM, Inc.	$	10.1		$	3.6		$	1.1		$	0.5			180.6	%		120.0	%
Net income per NCM, Inc. basic share	$	0.17		$	0.06		$	0.02		$	0.01			179.4	%		120.0	%
Net income per NCM, Inc. diluted share	$	0.17		$	0.06		$	0.02		$	0.01			177.9	%		117.6	%
Adjusted OIBDA	$	67.4		$	52.0		$	95.1		$	74.6			29.6	%		27.5	%
Adjusted OIBDA margin		55.5	%		52.1	%		47.9	%		43.9	%		3.4	%		4.0	%
Total theatre attendance (in millions) (2)		191.8			175.4			353.2			341.9			9.4	%		3.3	%

NM = not meaningful.

(1) Merger termination fee and related merger costs primarily include the merger termination payment and legal, accounting, advisory and other professional fees associated with the terminated merger with Screenvision.

(2) Represents the total attendance within NCM LLC’s advertising network, excluding screens and attendance associated with certain AMC Rave and Cinemark Rave theatres for all periods presented.

Non-GAAP Financial Measures

Operating Income Before Depreciation and Amortization (“OIBDA”), Adjusted OIBDA and Adjusted OIBDA margin are not financial measures calculated in accordance with GAAP in the U.S. OIBDA represents consolidated net income plus income tax expense, interest and other costs and depreciation and amortization expense. Adjusted OIBDA excludes from OIBDA non-cash share based payment costs and the merger termination fee and related merger costs. Adjusted OIBDA margin is calculated by dividing Adjusted OIBDA by total revenue. These non-GAAP financial measures are used by management to evaluate operating performance, to forecast future results and as a basis for compensation. The Company believes these are important supplemental measures of operating performance because they eliminate items that have less bearing on its operating performance and so highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of these measures is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company’s management, helps improve their ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that may have different depreciation and amortization policies, non-cash share based compensation programs, levels of mergers and acquisitions, interest rates or debt levels or income tax rates. A limitation of these measures, however, is that they exclude depreciation and amortization, which represent a proxy for the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company’s business. In addition, Adjusted OIBDA has the limitation of not reflecting the effect of the Company’s share based payment costs or costs associated with the Screenvision merger. OIBDA or Adjusted OIBDA should not be regarded as an alternative to operating income, net income or as indicators of operating performance, nor should they be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that consolidated net income is the most directly comparable GAAP financial measure to OIBDA. Because not all companies use identical calculations, these non-

23

GAAP presentations may not be comparable to other similarly titled measures of other companies, or calculations in the Company’s debt agreement.

The following table reconciles consolidated net income to OIBDA and Adjusted OIBDA for the periods presented (dollars in millions):

	Three Months Ended						Six Months Ended
	July 2, 2015			June 26, 2014			July 2, 2015			June 26, 2014
Consolidated net income	$	33.3		$	17.9		$	3.1		$	13.3
Income tax expense		5.8			3.8			1.5			2.1
Interest and other non-operating costs		16.3			18.6			34.1			37.7
Depreciation and amortization		8.2			7.8			16.2			15.6
OIBDA	$	63.6		$	48.1		$	54.9		$	68.7
Share-based compensation costs (1)		2.9			2.2			5.9			4.2
Merger termination fee and related merger costs (2)		0.9			1.7			34.3			1.7
Adjusted OIBDA	$	67.4		$	52.0		$	95.1		$	74.6
Total revenue	$	121.5		$	99.9		$	198.4		$	170.1
Adjusted OIBDA margin		55.5	%		52.1	%		47.9	%		43.9	%

(1) Share-based compensation costs are included in network operations, selling and marketing and administrative expense in the accompanying unaudited Condensed Consolidated Financial Statements.

(2) Merger termination fee and related merger costs primarily include the merger termination payment and legal, accounting, advisory and other professional fees associated with the terminated merger with Screenvision.

The Company has also presented total operating expenses before the merger termination fee and related merger costs within its results of operations section below which is not a financial measure calculated in accordance with GAAP in the United States.  Operating expenses before the merger termination fee and related merger costs represent operating costs less costs associated with the terminated Screenvision merger.  This non-GAAP financial measure is used to provide readers a comparison of our results for the first six months of 2015 to our results for the first six months of 2014 without the nonrecurring merger termination fee and related merger costs.  The Company believes this is an important supplemental measure because it eliminates these nonrecurring costs to highlight trends in its ongoing business that may not otherwise be apparent when relying solely on GAAP financial measures.  Operating expenses before the merger termination fee and related merger costs should not be regarded as an alternative to operating expenses or as an indicator of operating performance, nor should it be considered in isolation of, or as a substitute for financial measures prepared in accordance with GAAP. The Company believes that total operating expenses is the most directly comparable GAAP financial measure.

Basis of Presentation

The results of operations data for the three and six months ended July 2, 2015 and June 26, 2014 was derived from the unaudited Condensed Consolidated Financial Statements and accounting records of NCM, Inc. and should be read in conjunction with the notes thereto.

Results of Operations

Three Months Ended July 2, 2015 and June 26, 2014

Revenue. Total revenue increased 21.6%, from $99.9 million for the three months ended June 26, 2014 to $121.5 million for the three months ended July 2, 2015.  The following is a summary of revenue by category (in millions):

	Three Months Ended				$ Change			% Change
	July 2, 2015		June 26, 2014		Q2 2015 to Q2 2014			Q2 2015 to Q2 2014
National advertising revenue	$	89.2	$	68.4	$	20.8			30.4	%
Local advertising revenue		23.3		21.7		1.6			7.4	%
Founding member advertising revenue from beverage    concessionaire agreements		9.0		9.8		(0.8	)		(8.2	%)
Total revenue	$	121.5	$	99.9	$	21.6			21.6	%

24

The following table shows data on theatre attendance and revenue per attendee for the three months ended July 2, 2015 and June 26, 2014:

	Three Months Ended				% Change
	July 2, 2015		June 26, 2014		Q2 2015 to Q2 2014
National advertising revenue per attendee	$	0.465	$	0.390		19.2	%
Local advertising revenue per attendee	$	0.121	$	0.124		(2.4	%)
Total advertising revenue (excluding founding    member beverage revenue) per attendee	$	0.587	$	0.514		14.2	%
Total advertising revenue per attendee	$	0.633	$	0.570		11.1	%
Total theatre attendance (in millions) (1)		191.8		175.4		9.4	%

(1) Represents the total attendance within NCM LLC’s advertising network, excluding screens and attendance associated with certain AMC Rave and Cinemark Rave theatres for all periods presented.

National advertising revenue. The $20.8 million, or 30.4%, increase in national advertising revenue (excluding beverage revenue from NCM LLC’s founding members) was due primarily to a 20.5% increase in impressions sold (net of make-good reserve) in the second quarter of 2015, compared to the second quarter of 2014 and an increase in national advertising CPMs (excluding beverage) of 10.6% in the second quarter of 2015, compared to the second quarter of 2014.  The increase in impressions sold (net of make-good reserve) was driven by an increase in national inventory utilization, which rose from 122.9% for the second quarter of 2014 to 133.3% for the second quarter of 2015, due to an overall expansion of our client base, related in part to the success of our strategy to compete in the national television upfront marketplace.  National inventory utilization also increased due to a decrease in the length of approximately 50% of our content partner entertainment segments in our FirstLook preshow from two and a half minutes to two minutes in 2015, which contributed to the increase in our utilization by providing up to two additional 30 second national units across approximately 50% of our impression base.  Inventory utilization is calculated as utilized impressions divided by total advertising impressions, which is based on eleven 30-second salable national advertising units in our pre-show, which can be expanded, should market demand dictate.  The increase in impressions sold (net of make-good reserve) was also driven by an increase in our network theatre attendance of 9.3% related to an overall increase in cinema industry attendance resulting from a stronger film release schedule and the addition of new network affiliates discussed below in “Known Trends and Uncertainties”.  The increase in CPMs relates primarily to strong scatter market demand combined with limited inventory availability due to our successful upfront sales campaign last year.  

Local advertising revenue. The $1.6 million, or 7.4% increasein local advertising revenue was driven by a 5.1% increase in average contract value and a 3.0% increase in total contract volume, compared to the second quarter of 2014.  The increase in average contract value was driven by a 13.2% increase in the average value of contracts between $100,000 and $250,000, partially offset by a 17.6% decrease in the average value of contracts above $250,000.  The increase in contract volume was driven primarily by an increase of 2.2% in the number of contracts below $10,000.

Founding member beverage revenue. The $0.8 million, or 8.2%, decrease in national advertising revenue from NCM LLC’s founding members’ beverage concessionaire agreements was due to a 14.4% decrease in beverage revenue CPMs, partially offset by a 7.6% increase in founding member attendance in the second quarter of 2015, compared to the second quarter of 2014.  The 2015 beverage revenue CPM is based on the change in CPM during segment one of the FirstLook pre-show from 2013 to 2014, which decreased 14.4%.  The increase in founding member attendance was primarily related to an overall increase in cinema industry attendance resulting from a stronger film release schedule.

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Operating expenses. Total operating expenses increased 10.9%, from $59.6 million for the three months ended June 26, 2014 to $66.1 million for the three months ended July 2, 2015.  The following table shows the changes in operating expense for the three months ended July 2, 2015 and June 26, 2014 (in millions):

	Three Months Ended				$ Change			% Change
	July 2, 2015		June 26, 2014		Q2 2015 to Q2 2014			Q2 2015 to Q2 2014
Advertising operating costs	$	8.3	$	6.6	$	1.7			25.8	%
Network costs		4.2		4.4		(0.2	)		(4.5	%)
Theatre access fees—founding members		19.2		17.9		1.3			7.3	%
Selling and marketing costs		17.0		14.1		2.9			20.6	%
Administrative and other costs		8.3		7.1		1.2			16.9	%
Depreciation and amortization		8.2		7.8		0.4			5.1	%
Total operating expenses before the merger    termination fee and related merger costs		65.2		57.9		7.3			12.6	%
Merger termination fee and related merger costs		0.9		1.7		(0.8	)	NM
Total operating expenses	$	66.1	$	59.6	$	6.5			10.9	%

Advertising operating costs. Advertising operating costs increased $1.7 million, or 25.8%, from $6.6 million for the second quarter of 2014 to $8.3 million for the second quarter of 2015. This increase was primarily the result of a $1.5 million increase in affiliate advertising payments.  The increase in affiliate advertising payments was driven by higher national and local advertising revenue and a 7.4% or 252 screen increase in the number of average affiliate screens in the second quarter of 2015, compared to the second quarter of 2014.  

Network costs. Network costs decreased $0.2 million, or 4.5%, from $4.4 million for the second quarter of 2014 to $4.2 million for the second quarter of 2015 due to a decrease in personnel related expenses.

Theatre access fees—founding members. Theatre access fees increased $1.3 million, or 7.3%, from $17.9 million for the second quarter of 2014 to $19.2 million for the second quarter of 2015.  The increase was due to a $0.9 million increase related to the 7.6% increase in founding member attendance in the second quarter of 2015 compared to the second quarter of 2014 and a $0.4 million increase in theatre access fees due to an increase in the fee associated with the number of digital screens that are connected to DCN, including higher quality digital cinema projectors and related equipment. The fees for digital screens and equipment increased $0.3 million related to an annual 5% rate increase specified in the ESAs and $0.1 million from an increase in the number of founding member screens equipped with the higher quality digital cinema equipment.

Selling and marketing costs. Selling and marketing costs increased $2.9 million, or 20.6%, from $14.1 million for the second quarter of 2014 to $17.0 million for the second quarter of 2015. This increase was primarily due to an increase of $1.5 million in personnel related expenses due primarily to $0.6 million of higher non-cash share-based compensation expense, as well as, an increase of $0.4 million in salaries and related benefit costs and an increase of $0.4 million in local sales commissions resulting from higher revenue and better performance against targets compared to 2014.  Selling and marketing costs also increased due to an increase of $0.5 million in certain marketing and research expenses, an increase of $0.4 million in non-cash barter expense related to timing of barter transactions, and an increase of $0.4 million in software and publishing costs.

Administrative and other costs. Administrative and other costs increased $1.2 million, or 16.9%, from $7.1 million for the second quarter of 2014 to $8.3 million for the second quarter of 2015 due primarily to a $1.2 million increase in personnel related expenses due primarily to a $0.4 million increase in non-cash share-based compensation expense, an increase in salaries and related benefit costs of $0.4 million related to a more fully staffed workforce in 2015 and an increase in bonuses of $0.4 million due primarily to higher revenue and better performance against targets compared to 2014.

Depreciation and amortization. Depreciation and amortization expense increased $0.4 million, or 5.1%, from $7.8 million for the second quarter of 2014 to $8.2 million for the second quarter of 2015. The increase was primarily due to NCM LLC founding member common unit adjustments and amortization of intangible assets related to new affiliate agreements.

Merger termination fee and related merger costs. The merger termination fee and related merger costs were $0.9 million for the second quarter of 2015 primarily for legal, accounting, advisory and other professional fees associated with the terminated Screenvision merger.

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Non-operating expenses.  Total non-operating expenses decreased 12.4%, from $18.6 million for the three months ended June 26, 2014 to $16.3 million for the three months ended July 2, 2015.  The following table shows the changes in non-operating expense for the three months ended July 2, 2015 and June 26, 2014 (in millions):

	Three Months Ended						$ Change			% Change
	July 2, 2015			June 26, 2014			Q2 2015 to Q2 2014			Q2 2015 to Q2 2014
Interest on borrowings	$	13.1		$	13.0		$	0.1			0.8	%
Interest income		(0.3	)		(0.5	)		0.2			(40.0	%)
Accretion of interest on the discounted payable    to founding members under tax receivable agreement		3.5			3.5			-			0.0	%
Amortization of terminated derivatives		-			2.5			(2.5	)		(100.0	%)
Other non-operating expense		-			0.1			(0.1	)		(100.0	%)
Total non-operating expenses	$	16.3		$	18.6		$	(2.3	)		(12.4	%)

The decrease in non-operating expense was due primarily to a $2.5 million decrease in the amortization of terminated derivatives as the amortization period ended in February 2015.

Net income. Net income increased $6.5 million from $3.6 million for the three months ended June 26, 2014 to $10.1 million for the three months ended July 2, 2015. The increase in net income was primarily due to an increase in operating income of $15.1 million and a decrease of $2.3 million in non-operating expense, as described above, partially offset by an $8.9 million increase in income attributable to noncontrolling interests and an increase in income tax expense of $2.0 million due primarily to higher net income before taxes in the period.

Six Months Ended July 2, 2015 and June 26, 2014

Revenue. Total revenue increased 16.6%, from $170.1 million for the six months ended June 26, 2014 to $198.4 million for the six months ended July 2, 2015.  The following is a summary of revenue by category (in millions):

	Six Months Ended				$ Change			% Change
	July 2, 2015		June 26, 2014		YTD 2015 to YTD 2014			YTD 2015 to YTD 2014
National advertising revenue	$	140.1	$	111.1	$	29.0			26.1	%
Local advertising revenue		41.7		39.8		1.9			4.8	%
Founding member advertising revenue from beverage    concessionaire agreements		16.6		19.2		(2.6	)		(13.5	%)
Total revenue	$	198.4	$	170.1	$	28.3			16.6	%

The following table shows data on theatre attendance and revenue per attendee for the six months ended July 2, 2015 and June 26, 2014:

	Six Months Ended				% Change
	July 2, 2015		June 26, 2014		YTD 2015 to YTD 2014
National advertising revenue per attendee	$	0.397	$	0.325		22.2	%
Local advertising revenue per attendee	$	0.118	$	0.116		1.7	%
Total advertising revenue (excluding founding    member beverage revenue) per attendee	$	0.515	$	0.441		16.8	%
Total advertising revenue per attendee	$	0.562	$	0.498		12.9	%
Total theatre attendance (in millions) (1)		353.2		341.9		3.3	%

(1) Represents the total attendance within NCM LLC’s advertising network, excluding screens and attendance associated with certain AMC Rave and Cinemark Rave theatres for all periods presented.

National advertising revenue. The $29.0 million, or 26.1%, increase in national advertising revenue (excluding beverage revenue from NCM LLC’s founding members) was due primarily to a 27.1% increase in impressions sold (net of make-good reserve) in the first six months of 2015, compared to the first six months of 2014 and an increase in national advertising CPMs (excluding beverage) of 1.8% in the first six months of 2015, compared to the first six

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months of 2014.  The increase in impressions sold (net of make-good reserve) was driven by an increase in national inventory utilization, which rose from 98.7% for the first six months of 2014 to118.3% for the first six months of 2015, due to an overall expansion of our client base, related in part to the success of our strategy to compete in the national television upfront marketplace.  National inventory utilization also increased due to a decrease in the length of approximately 50% of our content partner entertainment segments in our FirstLook preshow from two and a half minutes to two minutes in 2015, which contributed to the increase in our utilization by providing up to two additional 30 second national units across approximately 50% of our impression base.  Inventory utilization is calculated as utilized impressions divided by total advertising impressions, which is based on eleven 30-second salable national advertising units in our pre-show, which can be expanded, should market demand dictate.  This increase in impressions sold (net of make-good reserve)was also driven by an increase in our network theatre attendance of 3.3%related to an overall increase in cinema industry attendance resulting from a stronger film release schedule and the addition of new network affiliates discussed below in “Known Trends and Uncertainties”.  The increase in CPMs relates primarily to strong scatter market demand combined with limited inventory availability due to our successful upfront sales campaign last year.  

Local advertising revenue. The $1.9 million, or 4.8%, increase in local advertising revenue was driven by a 7.5% increase in average contract value, partially offset by a 2.6% decrease in total contract volume, compared to the first six months of 2014.  The increase in average contract value was driven by a 7.9% increase in the average value of contracts between $100,000 and $250,000, while the decrease in contract volume was driven by a 4.4% decrease in the number of contracts below $10,000.

Founding member beverage revenue. The $2.6 million, or 13.5%, decrease in national advertising revenue from NCM LLC’s founding members’ beverage concessionaire agreements was due to a 14.4% decrease in beverage revenue CPMs, partially offset by an increase of 1.2% in founding member attendance in the first six months of 2015, compared to the first six months of 2014.  The 2015 beverage revenue CPM is based on the change in CPM during segment one of the FirstLook pre-show from 2013 to 2014, which decreased 14.4%.  The increase in founding member attendance was primarily related to an overall increase in cinema industry attendance resulting from a stronger film release schedule.

Operating expenses. Total operating expenses increased 36.5%, from $117.0 million for the six months ended June 26, 2014 to $159.7 million for the six months ended July 2, 2015 due primarily to the Screenvision merger termination fee and related merger costs.  The following table shows the changes in operating expense for the six months ended July 2, 2015 and June 26, 2014 (in millions):

	Six Months Ended				$ Change			% Change
	July 2, 2015		June 26, 2014		YTD 2015 to YTD 2014			YTD 2015 to YTD 2014
Advertising operating costs	$	14.1	$	11.6	$	2.5			21.6	%
Network costs		8.7		9.0		(0.3	)		(3.3	%)
Theatre access fees—founding members		36.4		35.3		1.1			3.1	%
Selling and marketing costs		33.0		29.1		3.9			13.4	%
Administrative and other costs		17.0		14.7		2.3			15.6	%
Depreciation and amortization		16.2		15.6		0.6			3.8	%
Total operating expenses before the merger    termination fee and related merger costs		125.4		115.3		10.1			8.8	%
Merger termination fee and related merger costs		34.3		1.7		32.6		NM
Total operating expenses	$	159.7	$	117.0	$	42.7			36.5	%

Advertising operating costs. Advertising operating costs increased $2.5 million, or 21.6%, from $11.6 million for the first six months of 2014 to $14.1 million for the first six months of 2015. This increase was primarily the result of a $2.1 million increase in affiliate advertising payments and an increase of $0.2 million in production costs.The increase in affiliate advertising payments and production costs was driven by higher national and local advertising revenue and a 7.9% or 266 screen increase in the number of average affiliate screens in the first six months of 2015, compared to the first six months of 2014.

Network costs. Network costs decreased $0.3 million, or 3.3%, from $9.0 million for the first six months of 2014 to $8.7 million for the first six months of 2015 due to a decrease in personnel related expenses.

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Theatre access fees—founding members. Theatre access fees increased $1.1 million, or 3.1%, from $35.3 million for the first six months of 2014 to $36.4 million for the first six months of 2015.  The increase was due to a $0.8 million increase in theatre access fees due to an increase in the fee associated with the number of digital screens that are connected to DCN, including higher quality digital cinema projectors and related equipment and a $0.3 million increase related to the 1.2% increase in founding member attendance in the first six months of 2015 compared to the first six months of 2014 and. The fees for digital screens and equipment increased $0.7 million related to an annual 5% rate increase specified in the ESAs and $0.1 million from an increase in the number of founding member screens equipped with the higher quality digital cinema equipment.

Selling and marketing costs. Selling and marketing costs increased $3.9 million, or 13.4%, from $29.1 million for the first six months of 2014 to $33.0 million for the first six months of 2015. This increase was primarily due to an increase of $2.5 million in personnel related expenses due primarily to $1.0 million of higher non-cash share-based compensation expense, as well as, an increase of $0.8 million in salaries and related benefit costs and an increase of $0.5 million in local sales commissions resulting from higher revenue and better performance against targets compared to 2014.  Selling and marketing costs also increased due to an increase of $0.7 million in certain marketing and research expenses and an increase of $0.6 million in non-cash barter expense related to timing of barter transactions.

Administrative and other costs. Administrative and other costs increased $2.3 million, or 15.6%, from $14.7 million for the first six months of 2014 to $17.0 million for the first six months of 2015 due primarily to a $2.1 million increase in personnel related expenses due primarily to a $0.9 million increase in non-cash share-based compensation expense and an increase in salaries and related benefit costs of $0.8 million related to a more fully staffed workforce in 2015 and an increase in bonuses of $0.3 million due primarily to higher revenue and better performance against targets compared to 2014.

Depreciation and amortization. Depreciation and amortization expense increased $0.6 million, or 3.8%, from $15.6 million for the first six months of 2014 to $16.2 million for the first six months of 2015. The increase was primarily due to NCM LLC founding member common unit adjustments and amortization of intangible assets related to new affiliate agreements.

Merger termination fee and related merger costs. The merger termination fee and related merger costs were $34.3 million for the first six months of 2015 due to the merger termination payment of approximately $26.8 million and approximately $7.5 million in primarily legal, accounting, advisory and other professional fees associated with the terminated Screenvision merger.

Non-operating expenses.  Total non-operating expenses decreased 9.5%, from $37.7 million for the six months ended June 26, 2014 to $34.1 million for the six months ended July 2, 2015.  The following table shows the changes in non-operating expense for the six months ended July 2, 2015 and June 26, 2014 (in millions):

	Six Months Ended						$ Change			% Change
	July 2, 2015			June 26, 2014			YTD 2015 to YTD 2014			YTD 2015 to YTD 2014
Interest on borrowings	$	26.2		$	26.1		$	0.1			0.4	%
Interest income		(0.9	)		(0.9	)		-			0.0	%
Accretion of interest on the discounted payable to    founding members under tax receivable agreement		7.1			7.3			(0.2	)		(2.7	%)
Amortization of terminated derivatives		1.6			5.0			(3.4	)		(68.0	%)
Other non-operating expense		0.1			0.2			(0.1	)		(50.0	%)
Total non-operating expenses	$	34.1		$	37.7		$	(3.6	)		(9.5	%)

The decrease in non-operating expense was due primarily to a $3.4 million decrease in the amortization of terminated derivatives as the amortization period ended in February 2015.  

Net income. Net income increased $0.6 million from $0.5 million for the six months ended June 26, 2014 to $1.1 million for the six months ended July 2, 2015. The increase in net income was primarily due to a $10.8 million decrease in income attributable to noncontrolling interests, a decrease of $3.6 million in non-operating expense, as described above, and a decrease in income tax expense of $0.6 million due primarily to lower net income before taxes in the period, partially offset by a decrease in operating income of $14.4 million (due primarily to an increase of $32.6 million of the merger termination fee and related merger costs), as described further above.

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Known Trends and Uncertainties

Trends and Uncertainties Related to our Business, Industry and Corporate Structure

Changes in the current macro-economic environment and changes in the national and local and regional advertising markets, including increased competition related to the expansion of online and mobile advertising platforms, present uncertainties that could impact our results of operations, including the timing and amount of spending from our advertising clients. The impact to our business associated with these issues could be mitigated somewhat over time due to factors including the increase in salable advertising impressions and better geographic coverage related to the expansion of our network, diversification and growth of our advertising client base and improvements in the technical quality of our network and upgrades to our inventory management and audience targeting systems that are being accelerated. We could also benefit from the effectiveness of cinema advertising relative to other advertising mediums as consumer viewing habits shift to smaller less effective mobile devices and television ratings and effectiveness as a marketing platform declines due to the time-shifting of programming and related ad-skipping associated with the increasing use of DVRs by consumers. The impact of these consumer and media market trends appear to have improved our upfront national bookings that were up approximately 100% going into 2015 (for the period from October 1, 2014 through December 31, 2015).  Consistent with the television industry upfront booking practices, a portion of our upfront commitments have cancellation options that could reduce what is ultimately spent by clients that have made upfront commitments.

During 2014 and thus far in 2015, we have entered into agreements with seven new affiliate theatre circuits with 406 screens.  In total, these affiliate additions are expected to add approximately 15 million new attendees on a full-year pro-forma basis, which we expect will result in approximately 216 million new salable national advertising impressions (assuming 14 national advertising units of 30 seconds each).  One of these affiliates, with 142 screens and approximately 7 million attendees, will become a part of our network in January 2016.  We expect these additional attendees to provide our advertising clients a better marketing product with increased advertising impressions, improved geographic coverage and better audience targeting capabilities that is expected to expand our and our theatre circuit partner’s revenue, operating income and cash flow.  Our future revenue growth could also be positively impacted by the expansion of our advertising network.  We also believe that the continued growth of our market coverage ubiquity and overall number of impressions will strengthen our selling proposition and competitive positioning versus other national and local video advertising platforms, including television, online and mobile video platforms and other out-of home advertising platforms.

In 2014, we experienced a decline of 16.4% in national advertising CPMs (excluding beverage revenue) compared to the prior period due primarily to the increased competition from other national video networks, including online and mobile advertising platforms, television networks and other out-of-home video networks and the implementation of more aggressive seasonal and volume pricing strategies that contributed to the expansion of our inventory utilization related to the addition of new client industries that traditionally buy their television advertising at lower CPMs.  However, during the first six months of 2015, we experienced an increase of 1.8% in national advertising CPMs (excluding beverage revenue) as a result of a 10.6% increase in CPMs during the second quarter of 2015 and an 11.1% decline in CPMs during the first quarter of 2015.  This volatility in quarterly national CPMs combined with an increase in national inventory utilization reflects the success of our upfront inventory packaging strategy that created multi-flight campaigns for clients that were priced based on expected lower market demand in the first quarter of 2015 as compared to the rest of the year.  As a result of this new packaging strategy and more dynamic scatter pricing that is responsive to week-to-week market demand and inventory availability, we expect our national advertising CPMs (excluding beverage) to continue to be higher during higher demand periods and lower during periods of lower demand where we have greater amounts of unsold inventory.

Under the ESAs, up to 90 seconds of the FirstLook program can be sold to NCM LLC’s founding members to satisfy their on-screen advertising commitments under their beverage concessionaire agreements. During 2014 and in the first six months of 2015, we sold 60 seconds to NCM LLC’s founding members. In December 2014, we were notified by one of our founding members that beginning in July 2015, they will reduce their beverage advertising from 60 seconds to 30 seconds to accommodate a six-month test of other in-theatre marketing activities by their beverage supplier. During the six-month test, we will have the right to sell the 30 second unit to other clients. We expect this decrease to result in a reduction in beverage revenue of approximately $2.8 million for the second half of 2015.  However, we believe that given the higher inventory utilization experienced during the first six months of the year, some or all of this revenue may be replaced through the sale of national advertising to other brands who will find this premium inventory attractive. The other founding members have signed long-term contracts with their beverage suppliers that require 60 seconds of beverage advertising, although such commitments could change in the future. Should the amount of time acquired as part of these beverage concessionaire agreements decline with the other founding members, this premium time will be available for sale to other clients. Per the ESAs, beginning in 2012, the time sold to the founding member beverage supplier is priced equal to the advertising CPM for

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the previous year charged by NCM LLC to unaffiliated third parties during segment one (closest to showtime) of the FirstLook pre-show, limited to the highest advertising CPM being then-charged by NCM LLC. Due to a 14.4% decline in segment one CPMs in 2014, the CPM on our beverage concessionaire revenue declined during the first six months of 2015 by 14.4% and the remainder of 2015 will decline by an equivalent percentage.

In consideration for NCM LLC’s access to NCM LLC’s founding members’ theatre attendees for on-screen advertising and use of lobbies and other space within NCM LLC’s founding members’ theatres for the LEN and lobby promotions, NCM LLC’s founding members receive a monthly theatre access fee under the ESAs. The theatre access fee is composed of a fixed payment per patron and a fixed payment per digital screen (connected to the DCN). The payment per theatre patron increases by 8% every five years, with the first such increase taking effect for fiscal year 2012, and the payment per digital screen increases annually by 5%. The theatre access fee paid in the aggregate to all founding members cannot be less than 12% of NCM LLC’s aggregate advertising revenue (as defined in the ESA), or it will be adjusted upward to reach this minimum payment. Pursuant to ESAs, beginning on October 1, 2010 the theatre access fee paid to the members of NCM LLC included an additional fee for access to the higher quality digital cinema systems. This additional fee will continue to increase as additional screens are equipped with the new digital cinema equipment and the fee increases annually by 5%. As of July 2, 2015, 92.1% of our founding member network screens were showing advertising on digital cinema projectors, and thus the future impact on the theatre access fee rate of additional digital cinema installations in the existing founding member theatres will be minimal.

During 2015, we reduced the length of our content partner entertainment programming segments from two and a half minutes to two minutes in content partner agreements representing about 50% of our FirstLook preshow impressions.  During 2016, the remainder of our content partner agreements will also only provide for two minute entertainment content segments.  The reduction in the length of all of our FirstLook content partner entertainment segments from two and one half minutes to two minutes in will provide two additional 30 second national units and one additional local or regional advertising unit for us to sell across approximately 50% of our network impressions in 2015 and 100% in 2016.   This addition salable national, local and regional FirstLook preshow inventory could allow us to increase our future advertising revenue provided that there is adequate market demand.      

Trends and Uncertainties Related to Liquidity and Financial Performance

During 2014, 2013 and 2012, we amended our senior secured credit facility to extend the maturity, expand the revolver availability and reduce the interest rate spreads.  In 2012 and 2011, we issued new Senior Unsecured Notes and Senior Secured Notes primarily to refinance outstanding bank debt.  As a result of these financing transactions, we extended the average maturities of our debt by over six years.  The average remaining maturity is 5.8 years as of July 2, 2015.  As of July 2, 2015, approximately 64% of our total borrowings bear interest at fixed rates.  The remaining 36% of our borrowings bear interest at variable rates and as such, our net income and earnings per share could fluctuate with interest rate fluctuations related to our borrowings. Refer to Note 5—Borrowings to the unaudited Condensed Consolidated Financial Statements in Item 1 of this Form 10-Q for more information regarding the Company’s borrowings.

Due primarily to the decrease in our national advertising revenue in 2014, our cash flow available for the payment of dividends (NCM LLC’s Adjusted OIBDA, less capital expenditures, interest expense, distributions to NCM LLC’s founding members, income taxes, tax receivable agreement payments to NCM LLC’s founding members and plus certain cash items) was less than our regular dividend payment in 2014 ($0.88 per share).  The $4.7 million deficit was funded by NCM, Inc.’s cash and marketable securities balances.  As of July 2, 2015, these balances totaled $63.7 million.  While we anticipate over time that our revenue growth will result in cash flow available for dividends in excess of our regular dividend payments and believe that our cash and marketable securities balances could continue to fund deficits similar to 2014 for the foreseeable future, our Board of Directors will evaluate continued deficits as one of the factors when declaring dividends in the future.

Our short-term marketable securities balance decreased $5.6 million, from $21.7 million as of January 1, 2015 to $16.1 million as of July 2, 2015 and our long-term marketable securities balance decreased by $4.0 million, from $45.5 million as of January 1, 2015 to $41.5 million as of July 2, 2015.  The decrease in short-term and long-term marketable securities was due primarily to the Company converting securities into cash primarily related to its seasonal cash needs to fund its dividend payments and payments associated with the tax receivable agreement with NCM LLC’s founding members.

On March 16, 2015, the Company announced the termination of the Merger Agreement with Screenvision.  After the Merger Agreement was terminated, NCM LLC reimbursed NCM, Inc. for certain expenses pursuant to an indemnification agreement among NCM LLC, NCM, Inc. and the founding members.  On March 17, 2015, NCM LLC paid Screenvision an approximate $26.8 million termination payment on behalf of NCM, Inc. This payment was $2 million lower than the reverse

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termination fee contemplated by the Merger Agreement.  During the six months ended July 2, 2015, NCM LLC also either paid directly or reimbursed NCM, Inc. for the legal and other merger-related costs of approximately $15.0 million ($7.5 million incurred by NCM, Inc. during the year ended January 1, 2015 and approximately $7.5 million incurred by NCM LLC during the six months ended July 2, 2015). The Company and the founding members each bore a pro rata portion of the termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC.  We do not expect to incur additional material expenses related to the terminated merger.

Trends Related to Ownership in NCM LLC

In accordance with NCM LLC’s Common Unit Adjustment Agreement with its founding members, on an annual basis NCM LLC determines the amount of common membership units to be issued to or returned by the founding members based on theatre additions or dispositions during the previous year.  During the first quarter of 2015 and 2014, NCM LLC issued 2,160,915 and 1,087,911 common membership units to its founding members, respectively, for the rights to exclusive access to the theatre screens and attendees added, net of dispositions by the founding members to NCM LLC’s network during the previous year.  NCM LLC recorded a net intangible asset of $31.4 million and $16.4 million during the first quarter of 2015 and 2014, respectively, as a result of the Common Unit Adjustments.

Overall, NCM, Inc.’s ownership in NCM LLC decreased to 45.2% as of July 2, 2015 compared to 45.8% at January 1, 2015 due primarily to the common unit adjustment described above, which has proportionally increased net income attributable to noncontrolling interests and decreased net income attributable to NCM, Inc.

Financial Condition and Liquidity

Liquidity and Capital Resources

Our cash balances can fluctuate due to the seasonality of our business and related timing of collections of accounts receivable balances and operating expenditure payments, as well as available cash payments (as defined in the NCM LLC Operating Agreement) to NCM LLC’s founding members, interest or principal payments on our term loan and the Senior Secured Notes and Senior Unsecured Notes, income tax payments, tax receivable agreement payments to NCM LLC’s founding members and amount of quarterly dividends to NCM, Inc.’s common stockholders (including special dividends).

A summary of our financial liquidity is as follows (in millions):

	As of						$ Change			$ Change
	July 2, 2015		January 1, 2015		June 26, 2014		Q2 2015 to YE 2014			Q2 2015 to Q2 2014
Cash, cash equivalents and marketable securities (1)	$	69.4	$	80.6	$	73.7	$	(11.2	)	$	(4.3	)
Revolver availability (2)		70.0		113.0		120.0		(43.0	)		(50.0	)
Total liquidity	$	139.4	$	193.6	$	193.7	$	(54.2	)	$	(54.3	)

(1) Included in cash and cash equivalents as of July 2, 2015, January 1, 2015 and June 26, 2014, was $5.7 million, $10.2 million and $3.4 million, respectively, of cash held by NCM LLC that is not available to satisfy NCM, Inc.’s dividend, income tax, tax receivable payments to NCM LLC’s founding members and other obligations.

(2) The revolving credit facility portion of NCM LLC’s total borrowings is available, subject to certain conditions, for general corporate purposes of NCM LLC in the ordinary course of business and for other transactions permitted under the senior secured credit facility, and a portion is available for letters of credit. NCM LLC’s total capacity under the revolving credit facility is $135.0 million.

The $54.3 million decrease in liquidity as of July 2, 2015, compared to June 26, 2014, was due primarily to the funding of the merger termination fee of $26.8 million during the first three months of 2015 and related merger costs of approximately $15.0 million ($7.5 million incurred by NCM, Inc. during the year ended January 1, 2015 and approximately $7.5 million incurred by NCM LLC during the six months ended July 2, 2015).  The decrease in liquidity was also a result of the maturity of $14.0 million of the revolving credit facility in December 2014, for which NCM LLC paid the balance in full, thus decreasing the capacity under the revolving credit facility to $135.0 million from $149.0 million.  Pursuant to the NCM LLC Operating Agreement, the $25.5 million negative available cash distribution calculation for the first quarter of 2015 will be netted against the available cash distributions for the second quarter of 2016 (to be paid in the third quarter of 2016).  As such, the revolving credit facility borrowings related to these remaining merger costs are expected to be repaid at that time.

32

We have generated and used cash as follows (in millions):

	Six Months Ended
	July 2, 2015			June 26, 2014
Operating cash flow	$	10.2		$	36.6
Investing cash flow	$	3.4		$	5.4
Financing cash flow	$	(15.2	)	$	(83.3	)

· Operating Activities. The $26.4 million decrease in cash provided by operating activities for the six months ended July 2, 2015 compared to the six months ended June 26, 2014 was due primarily to the $22.9 million lower change in accounts receivable period over period primarily due to higher revenue and timing of collections in the period and a $10.2 million decrease in consolidated net income, primarily related to the Screenvision merger termination fee and related merger costs, as described further above, and a decrease in the change to deferred tax assets due to net operating losses recorded in the period.  These decreases to cash provided by operating activities were partially offset by an $11.0 million decrease in accounts payable and accrued expenses period over period primarily due to the timing of payments and a $7.9 million lower payment to NCM LLC’s founding members under the tax receivable agreement due to a larger tax loss in 2014.

· Investing Activities. The $2.0 million decrease in cash provided by investing activities for the six months ended July 2, 2015 compared to the six months ended June 26, 2014 was due primarily to lower proceeds from sale and maturities of marketable securities, net of purchases of $2.0 million.

· Financing Activities. The $68.1 million decrease in cash used in financing activities for the six months ended July 2, 2015 compared to the six months ended June 26, 2014 was due primarily to a decrease of $28.8 million in cash dividends paid due to the absence of the payment of a special cash dividend of $0.50 per share during the first quarter of 2014 and higher proceeds from borrowings, net of repayments of $34.0 million due to higher borrowings on the revolving credit facility to pay the Screenvision merger termination fee and related merger costs, as described above.

Sources of Capital and Capital Requirements.

NCM, Inc.’s primary source of liquidity and capital resources is the quarterly available cash distributions from NCM LLC as well as its existing cash balances and marketable securities, which as of July 2, 2015 were $63.7 million (excluding NCM LLC).  NCM LLC’s primary sources of liquidity and capital resources are its cash provided by operating activities, availability under its revolving credit facility and cash on hand.

Management believes that future funds generated from NCM LLC’s operations and cash on hand should be sufficient to fund working capital requirements, NCM LLC’s debt service requirements, and capital expenditure and other investing requirements, through the next twelve months. Cash flows generated by NCM LLC’s distributions to NCM, Inc. and the founding members can be impacted by the seasonality of advertising sales, stock option exercises, interest on borrowings under our revolving credit agreement and to a lesser extent theatre attendance. NCM LLC is required pursuant to the terms of the NCM LLC Operating Agreement to distribute its available cash, as defined in the operating agreement, quarterly to its members (NCM LLC’s founding members and NCM, Inc.). The available cash distribution to the members of NCM LLC for the three months ended April 2, 2015 was calculated as negative $25.5 million ($11.5 million with NCM, Inc.) due to the merger termination fee and related merger costs.  Pursuant to the NCM LLC Operating Agreement, there was no distribution made in the second quarter of 2015 and the negative amount will be netted against available cash distributions for the second quarter of 2016, which will be paid in the third quarter of 2016.  The available cash distribution to the members of NCM LLC for the three months ended July 2, 2015 (which will be made during the third quarter of 2015) was approximately $45.8 million, of which approximately $20.7 million will be distributed to NCM, Inc.  NCM, Inc. expects to use cash received from future available cash distributions and its cash balances to fund income taxes, payments associated with the tax receivable agreement with NCM LLC’s founding members and current and future dividends as declared by the Board of Directors, including a dividend declared on August 5, 2015 of $0.22 per share (approximately $13.0 million) on each share of the Company’s common stock (not including outstanding restricted stock) to stockholders of record on August 20, 2015 to be paid on September 3, 2015. Distributions from NCM LLC and NCM, Inc. cash balances should be sufficient to fund the above listed items for the foreseeable future at the discretion of the Board of Directors dependent on anticipated cash needs, overall financial condition, future prospects for earnings, available cash and cash flows, as well as other relevant factors.

33

We expect to make $13.0 million to $15.0 million of capital expenditures in fiscal 2015.  This increase of $2.0 million to $3.0 million from our initial estimates is primarily related to an acceleration of the development of our management systems, including upgrades to our digital content software distribution and content management software and our proposal, inventory and audience targeting management systems.  Our total capital expenditure projections also include investments in reporting systems, server and storage upgrades, software licensing, our internet site and network equipment related to currently contracted network affiliate theatres.

Critical Accounting Policies

For a discussion of accounting policies that we consider critical to our business operations and understanding of our results of operations, and that affect the more significant judgments and estimates used in the preparation of our unaudited Condensed Consolidated Financial Statements, see Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” contained in our annual report on Form 10-K filed for the fiscal year ended January 1, 2015 and incorporated by reference herein.  As of July 2, 2015, there were no significant changes in those critical accounting policies.

Recent Accounting Pronouncements

For a discussion of recent accounting pronouncements, see the information provided under Note 1—The Company to the unaudited Condensed Consolidated Financial Statements in Item 1 of this Form 10-Q.

The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its unaudited Condensed Consolidated Financial Statements.

Related Party Transactions

For a discussion of related party transactions, see the information provided under Note 4—Related Party Transactions to the unaudited Condensed Consolidated Financial Statements in Item 1 of this Form 10-Q.

Off-Balance Sheet Arrangements

Our operating lease obligations, which primarily include office leases, are not reflected on our balance sheet.  See Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Contractual and Other Obligations” contained in our annual report on Form 10-K for the fiscal year ended January 1, 2015 and incorporated by reference herein.  We do not believe these arrangements are material to our current or future financial condition, results of operations, liquidity, capital resources or capital expenditures.

Contractual and Other Obligations

There were no material changes to our contractual obligations during the three months ended July 2, 2015.

Seasonality

Our revenue and operating results are seasonal in nature, coinciding with the timing of marketing expenditures by our advertising clients and to a lesser extent the attendance patterns within the film exhibition industry. Both advertising expenditures and theatre attendance tend to be higher during the second, third, and fourth fiscal quarters. Advertising revenue is primarily correlated with new product releases, advertising client marketing priorities and economic cycles and to a lesser extent theatre attendance levels. The actual quarterly results for each quarter could differ materially depending on these factors or other risks and uncertainties. Based on our historical experience, our first quarter typically has less revenue than the other quarters of a given year due primarily to lower advertising client demand and lower theatre industry attendance levels. Accordingly, there can be no assurances that seasonal variations will not materially affect our results of operations in the future.

34

The following table reflects the quarterly percentage of total revenue for the fiscal years ended 2011, 2012, 2013 and 2014.

	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
FY 2011		16.3%		26.2%		31.2%		26.3%
FY 2012		17.6%		24.5%		32.1%		25.8%
FY 2013		17.8%		26.5%		29.2%		26.5%
FY 2014		17.8%		25.4%		25.6%		31.2%

The following table reflects the quarterly percentage of total advertising revenue for the fiscal years ended 2010, 2011, 2012 and 2013.

	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
FY 2011		15.3%		25.5%		32.9%		26.3%
FY 2012		16.2%		24.7%		33.7%		25.4%
FY 2013		17.3%		27.4%		29.9%		25.4%
FY 2014		17.8%		25.4%		25.6%		31.2%

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The primary market risk to which we are exposed is interest rate risk.  The Senior Unsecured Notes and the Senior Secured Notes are at fixed rates, and therefore are not subject to market risk.  As of July 2, 2015, the only interest rate risk that we are exposed to is related to our $135.0 million revolving credit facility and our $270.0 million term loan.  A 100 basis point fluctuation in market interest rates underlying our term loan and revolving credit facility would have the effect of increasing or decreasing our cash interest expense by approximately $3.4 million for an annual period on the $65.0 million revolving credit balance and $270.0 million term loan outstanding as of July 2, 2015.  For a discussion of market risks, see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” contained in our annual report on Form 10-K for the fiscal year ended January 1, 2015 and incorporated by reference herein.

Item 4.  Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit to the SEC under the Exchange Act, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission’s rules and forms, and that information is accumulated and communicated to our management, including the Chief Executive Officer (principal executive officer) and Senior Vice President, Finance and Interim Co-Chief Financial Officer (principal financial officer) as appropriate to allow timely decisions regarding required disclosure.  As of July 2, 2015, our management evaluated, with the participation of the Chief Executive Officer and Senior Vice President, Finance and Interim Co-Chief Financial Officer, the effectiveness of the Company’s disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) of the Exchange Act.  Based on that evaluation, the Company’s management concluded that the Company’s disclosure controls and procedures as of July 2, 2015 were effective.

There have been no changes in the Company’s internal controls over financial reporting that occurred during the quarter ended July 2, 2015 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

We are sometimes involved in legal proceedings arising in the ordinary course of business. We are not aware of any other litigation currently pending that would have a material adverse effect on our operating results or financial condition.

35

Item 1A. Risk Factors

There have been no material changes from risk factors as previously disclosed in our annual report on Form 10-K filed with the SEC on February 27, 2015 for the fiscal year ended January 1, 2015.  However, on March 16, 2015, the Company announced the termination of the Merger Agreement, as described in Note 1 – The Company to the unaudited Condensed Consolidated Financial Statements in this Form 10-Q and the Company believes the merger-related risk factors in the Form 10-K are no longer applicable.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The table below provides information about shares delivered to the Company from restricted stock held by Company employees upon vesting for purpose of funding the recipient’s tax withholding obligations.

Period	(a) Total Number of Shares Purchased	(b) Average Price Paid Per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased under the Plans or Programs
April 3, 3015 through April 30, 2015	4,523		$15.24		—		N/A
May 1, 2015 through May 28, 2015	1,331		$15.26		—		N/A
May 29, 2015 through July 2, 2015	189		$15.96		_		N/A

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None

Item 6. Exhibits

Exhibit	Reference	Description
31.1	*	Rule 13a-14(a) Certification of Chief Executive Officer.
31.2	*	Rule 13a-14(a) Certification of Principal Financial Officer.
32.1	**	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.
32.2	**	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350.
101.INS	*	XBRL Instance Document
101.SCH	*	XBRL Taxonomy Extension Schema Document
101.CAL	*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

** Furnished herewith.

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		NATIONAL CINEMEDIA, INC.
		(Registrant)
Date:	August 7, 2015	/s/ Kurt C. Hall
		Kurt C. Hall
		President and Chief Executive Officer
		(Principal Executive Officer)

Date:	August 7, 2015	/s/ David J. Oddo
		David J. Oddo
		Senior Vice President, Finance and Interim Co-Chief Financial Officer (Principal Financial Officer)
Date:	August 7, 2015	/s/ Jeffrey T. Cabot
		Jeffrey T. Cabot
		Senior Vice President, Controller and Interim Co-Chief Financial Officer (Principal Accounting Officer)

37

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Kurt C. Hall, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of National CineMedia, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2015	/s/ Kurt C. Hall
	Kurt C. Hall
	President, Chief Executive Officer and Chairman
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, David J. Oddo, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of National CineMedia, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2015	/s/ David J. Oddo
	David J. Oddo
	Senior Vice President, Finance and Interim Co-Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ending July 2, 2015 (the “Report”) of National CineMedia, Inc. (the “Registrant”) as filed with the Securities and Exchange Commission on the date hereof, I, Kurt C. Hall, the President, Chief Executive Officer and Chairman of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: August 7, 2015	/s/ Kurt C. Hall
	Kurt C. Hall
	President, Chief Executive Officer and Chairman
	(Principal Executive Officer)

This certification is furnished with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ending July 2, 2015 (the “Report”) of National CineMedia, Inc. (the “Registrant”) as filed with the Securities and Exchange Commission on the date hereof, I, David J. Oddo, the Senior Vice President, Finance and Interim Co-Chief Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: August 7, 2015	/s/ David J. Oddo
	David J. Oddo
	Senior Vice President, Finance and Interim Co-Chief Financial Officer
	(Principal Financial Officer)

This certification is furnished with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.

XML

Commitments And Contingencies (Narrative) (Details) - Jul. 02, 2015 - USD ($)	Total
Other Commitments [Line Items]
Maximum potential payment	$ 32,300,000
Carrying amount of minimum revenue guarantees	$ 0
Minimum [Member]
Other Commitments [Line Items]
Range of terms, in years	3 years
Maximum [Member]
Other Commitments [Line Items]
Range of terms, in years	20 years

XML

Derivative Instruments And Hedging Activities (Schedule Of Changes in AOCI By Component) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Balance at beginning of period		$ (0.4)	$ (3.2)
Amortization on discontinued cash flow hedges	$ 2.5	1.6	5.0
Total amounts reclassified from AOCI		1.6	5.0
Noncontrolling interest on reclassifications		(0.9)	(2.7)
Tax effect on reclassifications		(0.3)	(0.9)
Net other comprehensive income		$ 0.4	1.4
Balance at end of period	$ (1.8)		$ (1.8)

XML

Related-Party Transactions (Summary Of Transactions Between The Company And The Founding Members Included in Statements Of Income) (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended		12 Months Ended
		Jul. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014	Dec. 26, 2013	Jan. 01, 2015
Related Party Transaction [Line Items]
Advertising revenue		$ 121.5	$ 99.9	$ 198.4	$ 170.1
Theatre access fee	[1]	19.2	17.9	36.4	35.3
Selling and marketing costs		17.0	14.1	33.0	29.1
Administrative and other costs		8.3	7.1	17.0	14.7
Interest income from notes receivable (included in interest income)	[2]	$ 0.2	$ 0.3	$ 0.5	$ 0.6
On-screen advertising time purchased, in seconds		60 seconds	60 seconds	60 seconds	60 seconds
On-screen advertising time to satisfy agreement obligations, in seconds		30 seconds	30 seconds	30 seconds	30 seconds
Promissory notes receivable from founding members		$ 20.8		$ 20.8			$ 20.8
Notes receivable payment term				Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing.
AMC [Member] | AC JV, LLC [Member]
Related Party Transaction [Line Items]
Ownership percentage						32.00%
Promissory notes receivable from founding members						$ 8.3
Regal [Member] | AC JV, LLC [Member]
Related Party Transaction [Line Items]
Ownership percentage						32.00%
Promissory notes receivable from founding members						$ 8.3
Cinemark [Member] | AC JV, LLC [Member]
Related Party Transaction [Line Items]
Ownership percentage						32.00%
Promissory notes receivable from founding members						$ 8.3
NCM, LLC. [Member] | AC JV, LLC [Member]
Related Party Transaction [Line Items]
Ownership percentage						4.00%
NCM, LLC. [Member] | Founding Members [Member] | AC JV, LLC [Member]
Related Party Transaction [Line Items]
Interest rate on notes receivable						5.00%
Promissory notes receivable from founding members						$ 25.0
Maximum [Member]
Related Party Transaction [Line Items]
On-screen advertising time which founding members have right to purchase, in seconds		90 seconds	90 seconds	90 seconds	90 seconds
Beverage Concessionaire [Member]
Related Party Transaction [Line Items]
Advertising revenue	[3]	$ 9.0	$ 9.8	$ 16.6	$ 19.2
Advertising Inventory [Member]
Related Party Transaction [Line Items]
Advertising revenue	[4]			0.1	0.1
Purchase Of Movie Tickets And Concession Products And Rental Of Theatre Space [Member]
Related Party Transaction [Line Items]
Selling and marketing costs	[5]	0.3	$ 0.3	0.5	$ 0.5
Administrative and other costs		$ 0.1		$ 0.1

[1] Comprised of payments per theatre attendee and payments per digital screen with respect to the founding member theatres included in the Company’s network, including payments for access to higher quality digital cinema equipment.

[2] On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (AC JV, LLC) owned 32% by each of the founding members and 4% by NCM LLC. In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member). The notes bear interest at a fixed rate of 5.0% per annum, compounded annually. Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing.

[3] For the three and six months ended July 2, 2015 and June 26, 2014, the founding members purchased 60 seconds of on-screen advertising time (with a right to purchase up to 90 seconds) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a rate specified by the ESA at a 30 second equivalent cost per thousand (“CPM”).

[4] The value of such purchases is calculated by reference to NCM LLC’s advertising rate card.

[5] Used primarily for marketing to NCM LLC’s advertising clients.

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Fair Value Measurements (Tables)

6 Months Ended

Jul. 02, 2015

Fair Value Disclosures [Abstract]

Schedule Of Other Investments

	As of
	July2,2015		January1,2015
Investment in AC JV, LLC (1)	$	1.4	$	1.3
Other investments (2)		2.9		1.2
Total	$	4.3	$	2.5

(1) Refer to Note 4—Related Party Transactions.

(2) During 2014 and the first quarter of 2015, the Company received equity securities in privately held companies as consideration for a portion of advertising contracts. The equity securities were accounted for under the cost method and represent an ownership of less than 20%. The Company does not exert significant influence on these companies’ operating or financial activities.

Estimated Fair Values Of Company's Financial Instruments

	As of July 2, 2015				As of January 1, 2015
	Carrying Value		Fair Value (1)		Carrying Value		Fair Value (1)
Term Loans	$	270.0	$	267.9	$	270.0	$	257.9
Senior Unsecured Notes		200.0		210.8		200.0		210.8
Senior Secured Notes		400.0		415.5		400.0		400.8

(1) The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2.

Fair Values Of The Company's Assets And Liabilities

			Fair Value Measurements at Reporting Date Using
	Asof July2,2015		QuotedPricesin ActiveMarketsfor IdenticalAssets (Level 1)		SignificantOther Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
ASSETS:
Cash equivalents (1)	$	6.7	$	6.7	$	—	$	—
Short-term marketable securities (2)		16.1		12.4		3.7		—
Long-term marketable securities (2)		41.5		36.7		4.8		—
Total assets	$	64.3	$	55.8	$	8.5	$	—

			Fair Value Measurements at Reporting Date Using
	Asof January1,2015		QuotedPricesin ActiveMarketsfor IdenticalAssets (Level 1)		SignificantOther Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
ASSETS:
Cash equivalents (1)	$	2.5	$	2.5	$	—	$	—
Short-term marketable securities (2)		21.7		9.5		12.2		—
Long-term marketable securities (2)		45.5		41.5		4.0		—
Total assets	$	69.7	$	53.5	$	16.2	$	—

(1) Cash Equivalents—The Company’s cash equivalents are carried at estimated fair value.  Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts and commercial paper with original maturities of three months or less, which are classified as Level 2 and are valued as described below.

(2) Short-Term and Long-Term Marketable Securities—The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds, commercial paper and certificates of deposit are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper and certificates of deposit is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and six months ended July 2, 2015 and June 26, 2014, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income.  Original cost of short-term marketable securities is based on the specific identification method. As of July 2, 2015, there was an inconsequential amount of gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer, and as of January 1, 2015, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer.

Schedule Of Marketable Securities

	As of July 2, 2015
	AmortizedCost Basis (inmillions)		AggregateFair Value (inmillions)		Maturities(1) (inyears)
MARKETABLE SECURITIES:
Short-term municipal bonds	$	12.4	$	12.4		0.5
Short-term certificates of deposit		3.7		3.7		0.5
Total short-term marketable securities		16.1		16.1
Long-term U.S. government treasury bonds		1.2		1.2		2.3
Long-term municipal bonds		1.7		1.7		1.4
Long-term U.S. government agency bonds		33.8		33.8		3.2
Long-term certificates of deposit:
Financial		4.5		4.5		2.4
Industrial		0.3		0.3		2.4
Total long-term marketable securities		41.5		41.5
Total marketable securities	$	57.6	$	57.6

	As of January 1, 2015
	AmortizedCost Basis (inmillions)		AggregateFair Value (inmillions)		Maturities(1) (inyears)
MARKETABLE SECURITIES:
Short-term municipal bonds	$	9.4	$	9.5		0.5
Short-term commercial paper:
Financial		3.4		3.4		—
Industrial		3.3		3.3		0.1
Utility		3.0		3.0		0.2
Short-term certificates of deposit		2.5		2.5		0.6
Total short-term marketable securities		21.6		21.7
Long-term U.S. government treasury bonds		5.1		5.1		2.7
Long-term municipal bonds		0.3		0.3		1.4
Long-term U.S. government agency bonds		36.1		36.1		3.3
Long-term certificates of deposit		4.0		4.0		3.1
Total long-term marketable securities		45.5		45.5
Total marketable securities	$	67.1	$	67.2

(1) Maturities—Securities available for sale include obligations with various contractual maturity dates some of which are greater than one year. The Company considers the securities to be liquid and convertible to cash within 30 days.

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Fair Value Measurements (Estimated Fair Values Of Company's Financial Instruments) (Details) - USD ($) $ in Millions		Jul. 02, 2015	Jan. 01, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding Balance		$ 935.0	$ 892.0
Term Loans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding Balance	[1]	270.0	270.0
Debt Instrument, Fair Value	[2]	267.9	257.9
Senior Unsecured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding Balance		200.0	200.0
Debt Instrument, Fair Value	[2]	210.8	210.8
Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding Balance		400.0	400.0
Debt Instrument, Fair Value	[2]	$ 415.5	$ 400.8

[1] The interest rates on the revolving credit facility and term loan are described below.

[2] The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2.

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Borrowings (Schedule Of Outstanding Debt) (Details) - USD ($) $ in Millions		6 Months Ended
		Jul. 02, 2015	Jan. 01, 2015
Debt Instrument [Line Items]
Outstanding Balance		$ 935.0	$ 892.0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Outstanding Balance	[1]	$ 65.0	22.0
Maturity Date	[1]	Nov. 26, 2019
Term Loans [Member]
Debt Instrument [Line Items]
Outstanding Balance	[1]	$ 270.0	270.0
Maturity Date	[1]	Nov. 26, 2019
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Outstanding Balance		$ 200.0	200.0
Maturity Date		Jul. 15, 2021
Interest Rate		7.875%
Senior Secured Notes [Member]
Debt Instrument [Line Items]
Outstanding Balance		$ 400.0	$ 400.0
Maturity Date		Apr. 15, 2022
Interest Rate		6.00%

[1] The interest rates on the revolving credit facility and term loan are described below.

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Subsequent Event (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions		6 Months Ended
	Aug. 06, 2015	Jul. 02, 2015	Aug. 05, 2015
Subsequent Events [Line Items]
Dividends payable, date declared		Aug. 05, 2015
Dividends payable, date of record		Aug. 20, 2015
Dividends payable, date to be paid		Sep. 03, 2015
Subsequent Event [Member]
Subsequent Events [Line Items]
Cash dividends declared, per share			$ 0.22
Cash dividends declared			$ 13.0
Consulting Service, to Board and Chief Executive Officer, Term	24 months

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY/(DEFICIT) (UNAUDITED) - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid In Capital (Deficit) [Member]	Retained Earnings (Distribution In Excess Of Earnings) [Member]	Accumulated Other Comprehensive Loss [Member]	Noncontrolling Interest [Member]
Balance at Dec. 26, 2013	$ (146.1)	$ 0.6	$ (271.7)	$ (80.0)	$ (3.2)	$ 208.2
Balance, shares at Dec. 26, 2013		58,519,137
Distributions to founding members	(24.6)					(24.6)
NCM LLC equity issued for purchase of intangible asset	16.4		7.5			8.9
Income tax and other impacts of NCM LLC ownership changes	(0.8)		(2.4)			1.6
Comprehensive income, net of tax	17.4			0.5	1.4	15.5
Share-based compensation issued, value	(0.5)		(0.5)
Share-based compensation issued, shares		223,052
Share-based compensation expense/capitalized	4.2		2.9			1.3
Excess tax benefit from share-based	0.2		0.2
Cash dividends declared	(54.5)			(54.5)
Balance at Jun. 26, 2014	(188.3)	$ 0.6	(264.0)	(134.0)	(1.8)	210.9
Balance, shares at Jun. 26, 2014		58,742,189
Balance at Jan. 01, 2015	(208.7)	$ 0.6	(261.0)	(147.4)	(0.4)	199.5
Balance, shares at Jan. 01, 2015		58,750,926
Distributions to founding members	(25.1)					(25.1)
NCM LLC equity issued for purchase of intangible asset	31.4		14.1			17.3
Income tax and other impacts of NCM LLC ownership changes	(2.4)		(5.4)			3.0
Comprehensive income, net of tax	4.4			1.1	0.4	2.9
Share-based compensation issued, value	1.1		1.1
Share-based compensation issued, shares		261,112
Share-based compensation expense/capitalized	4.9		3.0			1.9
Cash dividends declared	(27.2)			(27.2)
Balance at Jul. 02, 2015	$ (221.6)	$ 0.6	$ (248.2)	$ (173.5)	$ 0.0	$ 199.5
Balance, shares at Jul. 02, 2015		59,012,038

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Fair Value Measurements (Fair Values Of The Company's Assets And Liabilities) (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Jul. 02, 2015	Jan. 01, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	[1]	$ 6.7	$ 2.5
Short-term marketable securities	[2]	16.1	21.7
Long-term marketable securities	[2]	41.5	45.5
Total assets		64.3	69.7
Individual securities gross unrealized losses		0.0	0.0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	[1]	6.7	2.5
Short-term marketable securities	[2]	12.4	9.5
Long-term marketable securities	[2]	36.7	41.5
Total assets		55.8	53.5
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term marketable securities	[2]	3.7	12.2
Long-term marketable securities	[2]	4.8	4.0
Total assets		$ 8.5	$ 16.2

[1] Cash Equivalents—The Company’s cash equivalents are carried at estimated fair value. Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts and commercial paper with original maturities of three months or less, which are classified as Level 2 and are valued as described below.

[2] Short-Term and Long-Term Marketable Securities—The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds, commercial paper and certificates of deposit are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper and certificates of deposit is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and six months ended July 2, 2015 and June 26, 2014, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short-term marketable securities is based on the specific identification method. As of July 2, 2015, there was an inconsequential amount of gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer, and as of January 1, 2015, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer.

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Income Per Share (Schedule Of Income Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
Earnings Per Share [Abstract]
Net income attributable to NCM, Inc.	$ 10.1	$ 3.6	$ 1.1	$ 0.5
Basic	58,974,581	58,722,025	58,931,628	58,670,412
Add: Dilutive effect of stock options and restricted stock	620,438	278,102	428,617	335,971
Diluted	59,595,019	59,000,127	59,360,245	59,006,383
Basic	$ 0.17	$ 0.06	$ 0.02	$ 0.01
Diluted	$ 0.17	$ 0.06	$ 0.02	$ 0.01

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The Company (Changes In Equity) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
General Company Information [Line Items]
Net income attributable to NCM, Inc.	$ 10.1	$ 3.6	$ 1.1	$ 0.5
NCM LLC equity issued for purchase of intangible asset			31.4	16.4
Income tax and other impacts of NCM LLC ownership changes			(2.4)	(0.8)
Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests			9.8	5.6
Additional Paid In Capital (Deficit) [Member]
General Company Information [Line Items]
NCM LLC equity issued for purchase of intangible asset			14.1	7.5
Income tax and other impacts of NCM LLC ownership changes			$ (5.4)	$ (2.4)

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Fair Value Measurements (Schedule Of Marketable Securities) (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Jul. 02, 2015	Jan. 01, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		$ 57.6	$ 67.1
Aggregate Fair Value - Short term marketable securities	[1]	16.1	21.7
Aggregate Fair Value - Long term marketable securities	[1]	41.5	45.5
Aggregate Fair Value - Total marketable securities		57.6	67.2
Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		16.1	21.6
Aggregate Fair Value - Short term marketable securities		16.1	21.7
Short-term Investments [Member] | Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		12.4	9.4
Aggregate Fair Value - Short term marketable securities		$ 12.4	$ 9.5
Maturities	[2]	6 months	6 months
Short-term Investments [Member] | Certificates Of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		$ 3.7	$ 2.5
Aggregate Fair Value - Short term marketable securities		$ 3.7	$ 2.5
Maturities	[2]	6 months	7 months 6 days
Short-term Investments [Member] | Commercial Paper, Financial [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis			$ 3.4
Aggregate Fair Value - Short term marketable securities			$ 3.4
Maturities	[2]
Short-term Investments [Member] | Commercial Paper, Industrial [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis			$ 3.3
Aggregate Fair Value - Short term marketable securities			$ 3.3
Maturities	[2]		1 month 6 days
Short-term Investments [Member] | Commercial Paper, Utility [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis			$ 3.0
Aggregate Fair Value - Short term marketable securities			$ 3.0
Maturities	[2]		2 months 12 days
Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		$ 41.5	$ 45.5
Aggregate Fair Value - Long term marketable securities		41.5	45.5
Long-term Investments [Member] | Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		1.7	0.3
Aggregate Fair Value - Long term marketable securities		$ 1.7	$ 0.3
Maturities	[2]	1 year 4 months 24 days	1 year 4 months 24 days
Long-term Investments [Member] | Certificates Of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis			$ 4.0
Aggregate Fair Value - Long term marketable securities			$ 4.0
Maturities	[2]		3 years 1 month 6 days
Long-term Investments [Member] | U.S. Government Treasury Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		$ 1.2	$ 5.1
Aggregate Fair Value - Long term marketable securities		$ 1.2	$ 5.1
Maturities	[2]	2 years 3 months 18 days	2 years 8 months 12 days
Long-term Investments [Member] | U.S. Government Agency Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		$ 33.8	$ 36.1
Aggregate Fair Value - Long term marketable securities		$ 33.8	$ 36.1
Maturities	[2]	3 years 2 months 12 days	3 years 3 months 18 days
Long-term Investments [Member] | Financial Certificate Of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		$ 4.5
Aggregate Fair Value - Long term marketable securities		$ 4.5
Maturities	[2]	2 years 4 months 24 days
Long-term Investments [Member] | Industrial Certificate Of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis		$ 0.3
Aggregate Fair Value - Long term marketable securities		$ 0.3
Maturities	[2]	2 years 4 months 24 days

[1] Short-Term and Long-Term Marketable Securities—The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds, commercial paper and certificates of deposit are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper and certificates of deposit is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and six months ended July 2, 2015 and June 26, 2014, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short-term marketable securities is based on the specific identification method. As of July 2, 2015, there was an inconsequential amount of gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer, and as of January 1, 2015, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer.

[2] Maturities—Securities available for sale include obligations with various contractual maturity dates some of which are greater than one year. The Company considers the securities to be liquid and convertible to cash within 30 days.

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Income Per Share (Narrative) (Details) - shares	3 Months Ended		6 Months Ended
	Jul. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
Stock Options And Non-Vested Restricted Stock [Member] | Exercise Prices Above Market Value [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted weighted average shares	16,810	84,891	61,329	164,038
Common Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted weighted average shares	71,704,494	69,543,579	70,814,007	69,059,399

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Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jul. 02, 2015	Apr. 02, 2015	Jun. 26, 2014	Mar. 27, 2014	Jul. 02, 2015	Jun. 26, 2014
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Percentage increase (decrease) in theatre attendance for Common Unit adjustment to occur					(2.00%)
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Percentage increase (decrease) in theatre attendance for Common Unit adjustment to occur					2.00%
NCM, LLC. [Member]
Finite-Lived Intangible Assets [Line Items]
Common membership units issued		2,160,915		1,087,911
Increase (decrease) in intangible assets, net		$ 31.4		$ 16.4
NCM, LLC. [Member] | AMC And Cinemark Integration Payments [Member]
Finite-Lived Intangible Assets [Line Items]
Increase (decrease) in intangible assets, net	$ (0.8)		$ (0.6)		$ (1.1)	$ (0.8)
NCM, LLC. [Member] | Founding Member Payment Election [Member]
Finite-Lived Intangible Assets [Line Items]
Increase (decrease) in intangible assets, net	$ (0.3)		$ (0.2)		$ (1.1)	$ (0.9)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jul. 02, 2015	Jun. 26, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$ 3.1	$ 13.3
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Deferred income tax expense	1.0	9.2
Depreciation and amortization	16.2	15.6
Non-cash share-based compensation	5.9	4.2
Excess tax benefit from share-based compensation	(0.1)	0.2
Accretion of interest on the discounted payable to founding members under tax receivable agreement	7.1	7.3
Amortization of terminated derivatives	1.6	5.0
Amortization of debt issuance costs	1.3	1.4
Other	0.6	(0.3)
Changes in operating assets and liabilities:
Receivables, net	(12.0)	10.9
Accounts payable and accrued expenses	(1.8)	(12.8)
Amounts due to founding members	1.0	3.0
Payment to founding members under tax receivable agreement	(17.2)	(25.1)
Deferred revenue	4.9	5.7
Income taxes and other	(1.4)	(1.0)
Net cash provided by operating activities	10.2	36.6
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(4.8)	(5.2)
Purchases of marketable securities	(40.8)	(70.2)
Proceeds from sale and maturities of marketable securities	49.9	81.3
Purchases of intangible assets from network affiliates	(0.9)	(0.5)
Net cash provided by investing activities	3.4	5.4
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends	(26.4)	(55.2)
Proceeds from borrowings	113.0	63.0
Repayments of borrowings	(70.0)	(54.0)
Payment of debt issuance costs		(0.1)
Founding member integration payments	1.1	0.9
Distributions to founding members	(32.9)	(37.2)
Excess tax benefit from share-based compensation	0.1	(0.2)
Proceeds from stock option exercises	1.1	0.8
Repurchase of stock for restricted stock tax withholding	(1.2)	(1.3)
Net cash used in financing activities	(15.2)	(83.3)
CHANGE IN CASH AND CASH EQUIVALENTS	(1.6)	(41.3)
Cash and cash equivalents at beginning of period	13.4	54.7
Cash and cash equivalents at end of period	11.8	13.4
Supplemental disclosure of non-cash financing and investing activity:
Purchase of an intangible asset with NCM LLC equity	31.4	16.4
Accrued distributions to founding members	25.1	18.4
Increase (decrease) in dividends not requiring cash in the period	0.8	(0.7)
Increase in cost and equity method investments	1.7
Supplemental disclosure of cash flow information:
Cash paid for interest	24.8	24.5
Payments for income taxes, net	$ 0.2	$ 6.6

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Related-Party Transactions (Narrative) (Details) - USD ($)			3 Months Ended			5 Months Ended	6 Months Ended		12 Months Ended
		Mar. 17, 2015	Jul. 02, 2015	Apr. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jul. 02, 2015	Jun. 26, 2014	Jan. 01, 2015	Dec. 26, 2013
Related Party Transaction [Line Items]
Percentage of cash savings related to taxes							90.00%
Payments for merger-related costs						$ 15,000,000	$ 15,000,000
Merger termination fee and related merger costs			$ 900,000		$ 1,700,000		34,300,000	$ 1,700,000
Cash receivable declared				$ 25,500,000
Cash payments to members			45,800,000	0	34,000,000		45,800,000	45,500,000
AC JV, LLC [Member]
Related Party Transaction [Line Items]
Investment in AC JV, LLC	[1]		1,400,000			1,400,000	1,400,000		$ 1,300,000
Equity in earnings of non-consolidated entities (included in other non-operating expense)			0		100,000		100,000	100,000
Founding Members [Member]
Related Party Transaction [Line Items]
Cash receivable declared				14,000,000
Cash payments to members			25,100,000		18,400,000		25,100,000	24,600,000
Cash payment due to founding members/managing member			25,100,000			25,100,000	25,100,000
AMC [Member]
Related Party Transaction [Line Items]
Cash payments to members			6,900,000		5,100,000		6,900,000	6,800,000
AMC [Member] | AC JV, LLC [Member]
Related Party Transaction [Line Items]
Ownership percentage										32.00%
Cinemark [Member]
Related Party Transaction [Line Items]
Cash payments to members			9,000,000		6,500,000		9,000,000	8,700,000
Cinemark [Member] | AC JV, LLC [Member]
Related Party Transaction [Line Items]
Ownership percentage										32.00%
Regal [Member]
Related Party Transaction [Line Items]
Cash payments to members			9,200,000		6,800,000		9,200,000	9,100,000
Regal [Member] | AC JV, LLC [Member]
Related Party Transaction [Line Items]
Ownership percentage										32.00%
NCM Inc. [Member]
Related Party Transaction [Line Items]
Cash receivable declared				$ 11,500,000
NCM, LLC. [Member] | AC JV, LLC [Member]
Related Party Transaction [Line Items]
Ownership percentage										4.00%
NCM, LLC. [Member] | LA Live [Member]
Related Party Transaction [Line Items]
Advertising operating costs, related party affiliates			0		100,000		100,000	100,000
Accounts payable, related party affiliates			100,000			100,000	100,000		100,000
NCM, LLC. [Member] | Starplex [Member]
Related Party Transaction [Line Items]
Advertising operating costs, related party affiliates					800,000			1,300,000
Accounts payable, related party affiliates									900,000
NCM, LLC. [Member] | Interactive Media Company [Member]
Related Party Transaction [Line Items]
Related party revenue			0		100,000		0	200,000
Accounts receivable			300,000			300,000	300,000		300,000
NCM, LLC. [Member] | AEG Live [Member]
Related Party Transaction [Line Items]
Related party revenue			500,000		$ 0		900,000	$ 0
Accounts receivable			$ 0			$ 0	0		400,000
Screenvision, LLC [Member]
Related Party Transaction [Line Items]
Merger termination payment		$ 26,800,000
Reverse termination fee, amount of lower payment		$ 2,000,000
Merger termination fee and related merger costs									7,500,000
Screenvision, LLC [Member] | NCM Inc. [Member]
Related Party Transaction [Line Items]
Merger termination fee and related merger costs									$ 7,500,000
Screenvision, LLC [Member] | NCM, LLC. [Member]
Related Party Transaction [Line Items]
Merger termination fee and related merger costs							$ 7,500,000

[1] Refer to Note 4—Related Party Transactions.

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Fair Value Measurements (Schedule Of Other Investments) (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Jul. 02, 2015	Jan. 01, 2015
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items]
Other investments	[1]	$ 2.9	$ 1.2
Total other investments		$ 4.3	$ 2.5
Cost-method ownership percentage		20.00%	20.00%
AC JV, LLC [Member]
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items]
Investment in AC JV, LLC	[2]	$ 1.4	$ 1.3

[1] During 2014 and the first quarter of 2015, the Company received equity securities in privately held companies as consideration for a portion of advertising contracts. The equity securities were accounted for under the cost method and represent an ownership of less than 20%. The Company does not exert significant influence on these companies’ operating or financial activities.

[2] Refer to Note 4—Related Party Transactions.

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions		Jul. 02, 2015	Jan. 01, 2015
CURRENT ASSETS:
Cash and cash equivalents		$ 11.8	$ 13.4
Short-term marketable securities	[1]	16.1	21.7
Receivables, net of allowance of $4.8 and $4.3, respectively		126.9	116.5
Prepaid expenses		4.2	3.6
Deferred tax assets		2.9	6.9
Income tax receivable		5.8	6.1
Current portion of notes receivable - founding members	[2]	4.2	4.2
Other current assets		0.8
Total current assets		172.7	172.4
NON-CURRENT ASSETS:
Property and equipment, net of accumulated depreciation of $75.9 and $72.9, respectively		21.9	22.4
Intangible assets, net of accumulated amortization of $80.3 and $69.3, respectively		508.8	488.6
Deferred tax assets		230.0	227.3
Debt issuance costs, net of accumulated amortization of $19.1 and $17.8, respectively		14.2	15.5
Long-term notes receivable, net of current portion - founding members	[2]	16.6	16.6
Other investments		4.3	2.5
Long-term marketable securities	[1]	41.5	45.5
Other assets		0.5	0.6
Total non-current assets		837.8	819.0
TOTAL ASSETS		1,010.5	991.4
CURRENT LIABILITIES:
Amounts due to founding members		28.1	34.9
Payable to founding members under tax receivable agreement	[3]	15.4	19.6
Accrued expenses		18.9	19.2
Accrued payroll and related expenses		10.0	10.7
Accounts payable		13.2	13.3
Deferred revenue		13.4	8.5
Deferred tax liability		0.7	1.0
Total current liabilities		99.7	107.2
NON-CURRENT LIABILITIES:
Long-term debt		935.0	892.0
Deferred tax liability		52.0	54.2
Payable to founding members under tax receivable agreement	[3]	145.4	146.7
Total non-current liabilities		1,132.4	1,092.9
Total liabilities		$ 1,232.1	$ 1,200.1
COMMITMENTS AND CONTINGENCIES (NOTE 6)
EQUITY/(DEFICIT):
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding, respectively
Common stock, $0.01 par value; 175,000,000 shares authorized, 59,012,038 and 58,750,926 issued and outstanding, respectively		$ 0.6	$ 0.6
Additional paid in capital/(deficit)		(248.2)	(261.0)
Retained earnings (distributions in excess of earnings)		(173.5)	(147.4)
Accumulated other comprehensive income/(loss)			(0.4)
Total NCM, Inc. stockholders’ equity/(deficit)		(421.1)	(408.2)
Noncontrolling interests		199.5	199.5
Total equity/(deficit)		(221.6)	(208.7)
TOTAL LIABILITIES AND EQUITY/DEFICIT		$ 1,010.5	$ 991.4

[1] Short-Term and Long-Term Marketable Securities—The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds, commercial paper and certificates of deposit are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper and certificates of deposit is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and six months ended July 2, 2015 and June 26, 2014, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short-term marketable securities is based on the specific identification method. As of July 2, 2015, there was an inconsequential amount of gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer, and as of January 1, 2015, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer.

[2] Refer to the discussion of notes receivable from the founding members above.

[3] The Company paid the founding members $17.2 million in the first quarter of 2015, of which $0.9 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $16.3 million was for the 2014 tax year. The Company paid the founding members $25.1 million in the first quarter of 2014, of which $6.7 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $18.4 million was for the 2013 tax year.

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Derivative Instruments And Hedging Activities (Narrative) (Details) - USD ($)	Jul. 02, 2015	Jan. 01, 2015
Derivative [Line Items]
Derivative asset	$ 0	$ 0
Derivative liability	0	0
Term Loans [Member]
Derivative [Line Items]
Debt instrument face amount	$ 270,000,000	$ 270,000,000

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
Statement Of Income And Comprehensive Income [Abstract]
CONSOLIDATED NET INCOME, NET OF TAX OF $5.8, $3.8, 1.5 AND $2.1, RESPECTIVELY	$ 33.3	$ 17.9	$ 3.1	$ 13.3
OTHER COMPREHENSIVE INCOME, NET OF TAX:
Amortization of terminated derivatives, net of tax of $0.0, $0.5, $0.3 and $0.9, respectively		2.0	1.3	4.1
CONSOLIDATED COMPREHENSIVE INCOME	33.3	19.9	4.4	17.4
Less: Comprehensive income attributable to noncontrolling interests		15.6	2.9	15.5
COMPREHENSIVE INCOME ATTRIBUTABLE TO NCM, INC.	$ 33.3	$ 4.3	$ 1.5	$ 1.9

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Related-Party Transactions (Schedule Of Mandatory Distributions To Members) (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jul. 02, 2015	Apr. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
Related Party Transaction [Line Items]
Cash payments to members	$ 45,800,000	$ 0	$ 34,000,000	$ 45,800,000	$ 45,500,000
AMC [Member]
Related Party Transaction [Line Items]
Cash payments to members	6,900,000		5,100,000	6,900,000	6,800,000
Cinemark [Member]
Related Party Transaction [Line Items]
Cash payments to members	9,000,000		6,500,000	9,000,000	8,700,000
Regal [Member]
Related Party Transaction [Line Items]
Cash payments to members	9,200,000		6,800,000	9,200,000	9,100,000
Founding Members [Member]
Related Party Transaction [Line Items]
Cash payments to members	25,100,000		18,400,000	25,100,000	24,600,000
NCM Inc. [Member]
Related Party Transaction [Line Items]
Cash payments to members	$ 20,700,000		$ 15,600,000	$ 20,700,000	$ 20,900,000

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Income Per Share (Tables)

6 Months Ended

Jul. 02, 2015

Earnings Per Share [Abstract]

Schedule Of Income Per Share, Basic And Diluted

	Three Months Ended				Six Months Ended
	July 2, 2015		June 26, 2014		July 2, 2015		June 26, 2014
Net income attributable to NCM, Inc. (in millions)	$	10.1	$	3.6	$	1.1	$	0.5
Weighted average shares outstanding:
Basic		58,974,581		58,722,025		58,931,628		58,670,412
Add: Dilutive effect of stock options and    restricted stock		620,438		278,102		428,617		335,971
Diluted	$	59,595,019	$	59,000,127	$	59,360,245	$	59,006,383
Income per NCM, Inc. share:
Basic	$	0.17	$	0.06	$	0.02	$	0.01
Diluted	$	0.17	$	0.06	$	0.02	$	0.01

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Related-Party Transactions (Schedule Of Amounts Due To Founding Members) (Details) - USD ($) $ in Millions	Jul. 02, 2015	Jan. 01, 2015
Related Party Transaction [Line Items]
Theatre access fees, net of beverage revenues	$ 3.8	$ 2.8
Cost and other reimbursement	(0.8)	(0.8)
Distributions payable to founding members	25.1	32.9
Total amounts due to founding members	28.1	34.9
AMC [Member]
Related Party Transaction [Line Items]
Theatre access fees, net of beverage revenues	1.2	0.8
Cost and other reimbursement	(0.6)	(0.6)
Distributions payable to founding members	6.9	9.1
Total amounts due to founding members	7.5	9.3
Cinemark [Member]
Related Party Transaction [Line Items]
Theatre access fees, net of beverage revenues	1.1	0.8
Cost and other reimbursement	(0.3)	(0.2)
Distributions payable to founding members	9.0	11.6
Total amounts due to founding members	9.8	12.2
Regal [Member]
Related Party Transaction [Line Items]
Theatre access fees, net of beverage revenues	1.5	1.2
Cost and other reimbursement	0.1
Distributions payable to founding members	9.2	12.2
Total amounts due to founding members	$ 10.8	$ 13.4

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Borrowings (Tables)

6 Months Ended

Jul. 02, 2015

Debt Disclosure [Abstract]

Schedule Of Outstanding Debt

The following table summarizes NCM LLC’s total outstanding debt as of July 2, 2015 and January 1, 2015 and the significant terms of its borrowing arrangements (in millions):

	OutstandingBalanceasof
Borrowings	July 2, 2015		January 1, 2015		Maturity Date	Interest Rate
Revolving Credit Facility	$	65.0	$	22.0	November26,2019	(1)
Term Loans		270.0		270.0	November26,2019	(1)
Senior Unsecured Notes		200.0		200.0	July15,2021		7.875%
Senior Secured Notes		400.0		400.0	April15,2022		6.000%
Total	$	935.0	$	892.0

(1) The interest rates on the revolving credit facility and term loan are described below.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
Statement Of Income And Comprehensive Income [Abstract]
Consolidated net income , tax	$ 5.8	$ 3.8	$ 1.5	$ 2.1
Amortization of terminated derivatives, tax	$ 0.0	$ 0.5	$ 0.3	$ 0.9

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICAL) - USD ($) $ in Millions	Jul. 02, 2015	Jan. 01, 2015
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 4.8	$ 4.3
Accumulated depreciation, property and equipment	75.9	72.9
Accumulated amortization, intangible assets	80.3	69.3
Accumulated amortization, debt issuance costs	$ 19.1	$ 17.8
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	175,000,000	175,000,000
Common stock, shares issued	59,012,038	59,012,038
Common stock, shares outstanding	58,750,926	58,750,926

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Commitments And Contingencies

6 Months Ended

Jul. 02, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments And Contingencies

6. COMMITMENTS AND CONTINGENCIES

Legal Actions—The Company is subject to claims and legal actions in the ordinary course of business.  The Company believes such claims will not have a material effect on its financial position, results of operations or cash flows.

Minimum Revenue Guarantees―As part of the network affiliate agreements entered into in the ordinary course of business under which the Company sells advertising for display in various network affiliate theatre chains, the Company has agreed to certain minimum revenue guarantees on a per attendee basis. If a network affiliate achieves the attendance set forth in their respective agreement, the Company has guaranteed minimum revenue for the network affiliate per attendee if such amount paid under the revenue share arrangement is less than its guaranteed amount.  The amount and term varies for each network affiliate, but terms range from three to 20 years, prior to any renewal periods of which some are at the option of the Company.  As of July 2, 2015, the maximum potential amount of future payments the Company could be required to make pursuant to the minimum revenue guarantees is $32.3 million over the remaining terms of the network affiliate agreements, which calculation does not include any potential future extensions.  As of July 2, 2015, the Company had no liabilities recorded for these obligations as such guarantees are less than the expected share of revenue paid to the affiliate.  As of January 1, 2015, the Company had an inconsequential amount of liabilities recorded for these obligations.

Income Taxes―The Company is subject to taxation in the U.S. and various states.  As of July 2, 2015 and January 1, 2015, there was no material liability or expense for the periods then ended recorded for payment of interest and penalties associated with uncertain tax positions or material unrecognized tax positions and the Company’s unrecognized tax benefits were not material.

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Document And Entity Information - shares	6 Months Ended
	Jul. 02, 2015	Aug. 04, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 02, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	NCMI
Entity Registrant Name	National CineMedia, Inc.
Entity Central Index Key	0001377630
Entity Filer Category	Large Accelerated Filer
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		61,472,476

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Fair Value Measurements

6 Months Ended

Jul. 02, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

7.  FAIR VALUE MEASUREMENTS

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

Non-Recurring Measurements—Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These assets include long-lived assets, intangible assets, cost and equity method investments, notes receivable and borrowings.

Long-Lived Assets, Intangible Assets, Other Investments and Notes Receivable—The Company regularly reviews long-lived assets (primarily property, plant and equipment), intangible assets, investments accounted for under the cost or equity method and notes receivable for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. When the estimated fair value is determined to be lower than the carrying value of the asset, an impairment charge is recorded to write the asset down to its estimated fair value.

Other investments consisted of the following (in millions):

	As of
	July2,2015		January1,2015
Investment in AC JV, LLC (1)	$	1.4	$	1.3
Other investments (2)		2.9		1.2
Total	$	4.3	$	2.5

(1) Refer to Note 4—Related Party Transactions.

(2) During 2014 and the first quarter of 2015, the Company received equity securities in privately held companies as consideration for a portion of advertising contracts. The equity securities were accounted for under the cost method and represent an ownership of less than 20%. The Company does not exert significant influence on these companies’ operating or financial activities.

The fair value of the investments has not been estimated as of July 2, 2015 and January 1, 2015 as there were no identified events or changes in the circumstances that had a significant adverse effect on the fair value of the investments and it is not practicable to do so because the equity securities are not in publicly traded companies.  As the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, they have been classified as Level 3 in the fair value hierarchy.

As of July 2, 2015 and January 1, 2015, the Company had notes receivable totaling $20.8 million and $20.8 million, respectively, from its founding members related to the sale of Fathom Events, as described in Note 4—Related Party Transactions. These notes were valued using comparative market multiples.  There were no identified events or changes in circumstances that had a significant adverse effect on the fair value of the notes receivable.  The notes are classified as Level 3 in the fair value hierarchy as the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs.

Borrowings—The carrying amount of the revolving credit facility is considered a reasonable estimate of fair value due to its floating-rate terms. The estimated fair values of the Company’s financial instruments where carrying values do not approximate fair value were as follows (in millions):

	As of July 2, 2015				As of January 1, 2015
	Carrying Value		Fair Value (1)		Carrying Value		Fair Value (1)
Term Loans	$	270.0	$	267.9	$	270.0	$	257.9
Senior Unsecured Notes		200.0		210.8		200.0		210.8
Senior Secured Notes		400.0		415.5		400.0		400.8

(1) The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2.

Recurring Measurements—The fair values of the Company’s assets and liabilities measured on a recurring basis pursuant to ASC 820-10, Fair Value Measurements and Disclosures are as follows (in millions):

			Fair Value Measurements at Reporting Date Using
	Asof July2,2015		QuotedPricesin ActiveMarketsfor IdenticalAssets (Level 1)		SignificantOther Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
ASSETS:
Cash equivalents (1)	$	6.7	$	6.7	$	—	$	—
Short-term marketable securities (2)		16.1		12.4		3.7		—
Long-term marketable securities (2)		41.5		36.7		4.8		—
Total assets	$	64.3	$	55.8	$	8.5	$	—

			Fair Value Measurements at Reporting Date Using
	Asof January1,2015		QuotedPricesin ActiveMarketsfor IdenticalAssets (Level 1)		SignificantOther Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
ASSETS:
Cash equivalents (1)	$	2.5	$	2.5	$	—	$	—
Short-term marketable securities (2)		21.7		9.5		12.2		—
Long-term marketable securities (2)		45.5		41.5		4.0		—
Total assets	$	69.7	$	53.5	$	16.2	$	—

(1) Cash Equivalents—The Company’s cash equivalents are carried at estimated fair value.  Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts and commercial paper with original maturities of three months or less, which are classified as Level 2 and are valued as described below.

(2) Short-Term and Long-Term Marketable Securities—The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds, commercial paper and certificates of deposit are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper and certificates of deposit is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and six months ended July 2, 2015 and June 26, 2014, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income.  Original cost of short-term marketable securities is based on the specific identification method. As of July 2, 2015, there was an inconsequential amount of gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer, and as of January 1, 2015, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer.

The amortized cost basis, aggregate fair value and maturities of the marketable securities the Company held as of July 2, 2015 and January 1, 2015 were as follows:

	As of July 2, 2015
	AmortizedCost Basis (inmillions)		AggregateFair Value (inmillions)		Maturities(1) (inyears)
MARKETABLE SECURITIES:
Short-term municipal bonds	$	12.4	$	12.4		0.5
Short-term certificates of deposit		3.7		3.7		0.5
Total short-term marketable securities		16.1		16.1
Long-term U.S. government treasury bonds		1.2		1.2		2.3
Long-term municipal bonds		1.7		1.7		1.4
Long-term U.S. government agency bonds		33.8		33.8		3.2
Long-term certificates of deposit:
Financial		4.5		4.5		2.4
Industrial		0.3		0.3		2.4
Total long-term marketable securities		41.5		41.5
Total marketable securities	$	57.6	$	57.6

	As of January 1, 2015
	AmortizedCost Basis (inmillions)		AggregateFair Value (inmillions)		Maturities(1) (inyears)
MARKETABLE SECURITIES:
Short-term municipal bonds	$	9.4	$	9.5		0.5
Short-term commercial paper:
Financial		3.4		3.4		—
Industrial		3.3		3.3		0.1
Utility		3.0		3.0		0.2
Short-term certificates of deposit		2.5		2.5		0.6
Total short-term marketable securities		21.6		21.7
Long-term U.S. government treasury bonds		5.1		5.1		2.7
Long-term municipal bonds		0.3		0.3		1.4
Long-term U.S. government agency bonds		36.1		36.1		3.3
Long-term certificates of deposit		4.0		4.0		3.1
Total long-term marketable securities		45.5		45.5
Total marketable securities	$	67.1	$	67.2

(1) Maturities—Securities available for sale include obligations with various contractual maturity dates some of which are greater than one year. The Company considers the securities to be liquid and convertible to cash within 30 days.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jul. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
REVENUE:
Advertising (including revenue from founding members of $9.0, $9.8, $16.7 and $19.3, respectively)		$ 121.5	$ 99.9	$ 198.4	$ 170.1
OPERATING EXPENSES:
Advertising operating costs		8.3	6.6	14.1	11.6
Network costs		4.2	4.4	8.7	9.0
Theatre access fees—founding members	[1]	19.2	17.9	36.4	35.3
Selling and marketing costs		17.0	14.1	33.0	29.1
Merger termination fee and related merger costs		0.9	1.7	34.3	1.7
Administrative and other costs		8.3	7.1	17.0	14.7
Depreciation and amortization		8.2	7.8	16.2	15.6
Total		66.1	59.6	159.7	117.0
OPERATING INCOME		55.4	40.3	38.7	53.1
NON-OPERATING EXPENSES:
Interest on borrowings		13.1	13.0	26.2	26.1
Interest income		(0.3)	(0.5)	(0.9)	(0.9)
Accretion of interest on the discounted payable to founding members under tax receivable agreement		3.5	3.5	7.1	7.3
Amortization of terminated derivatives			2.5	1.6	5.0
Other non-operating expense			0.1	0.1	0.2
Total		16.3	18.6	34.1	37.7
INCOME BEFORE INCOME TAXES		39.1	21.7	4.6	15.4
Income tax expense		5.8	3.8	1.5	2.1
CONSOLIDATED NET INCOME		33.3	17.9	3.1	13.3
Less: Net income attributable to noncontrolling interests		23.2	14.3	2.0	12.8
NET INCOME ATTRIBUTABLE TO NCM, INC.		$ 10.1	$ 3.6	$ 1.1	$ 0.5
NET INCOME PER NCM, INC. COMMON SHARE:
Basic		$ 0.17	$ 0.06	$ 0.02	$ 0.01
Diluted		$ 0.17	$ 0.06	$ 0.02	$ 0.01
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		58,974,581	58,722,025	58,931,628	58,670,412
Diluted		59,595,019	59,000,127	59,360,245	59,006,383
Dividends declared per common share		$ 0.22	$ 0.22	$ 0.44	$ 0.94

[1] Comprised of payments per theatre attendee and payments per digital screen with respect to the founding member theatres included in the Company’s network, including payments for access to higher quality digital cinema equipment.

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The Company (Policy)

6 Months Ended

Jul. 02, 2015

Accounting Policies [Abstract]

Basis Of Presentation

On May 5, 2014, NCM, Inc. entered into an Agreement and Plan of Merger (the “Merger Agreement”) to merge with Screenvision, LLC (“Screenvision”).  On November 3, 2014, the Department of Justice filed a lawsuit seeking to enjoin the merger.  On March 16, 2015, the Company announced the termination of the Merger Agreement and the lawsuit was dismissed.  After the Merger Agreement was terminated, NCM LLC reimbursed NCM, Inc. for certain expenses pursuant to an indemnification agreement among NCM LLC, NCM, Inc. and the founding members.  On March 17, 2015, NCM LLC paid Screenvision an approximate $26.8 million termination payment on behalf of NCM, Inc. This payment was $2 million lower than the reverse termination fee contemplated by the Merger Agreement.  During the six months ended July 2, 2015, NCM LLC also either paid directly or reimbursed NCM, Inc. for the legal and other merger-related costs of approximately $15.0 million ($7.5 million incurred by NCM, Inc. during the year ended January 1, 2015 and approximately $7.5 million incurred by NCM LLC during the six months ended July 2, 2015). The Company and the founding members each bore a pro rata portion of the merger termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC.

Basis of Presentation

The Company has prepared the unaudited Condensed Consolidated Financial Statements and related notes of NCM, Inc. in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”).  Accordingly, certain information and footnote disclosures typically included in an annual report have been condensed or omitted for this quarterly report.  The balance sheet as of January 1, 2015 is derived from the audited financial statements of NCM, Inc.  Therefore, the unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s annual report on Form 10-K filed for the fiscal year ended January 1, 2015.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly in all material respects the financial position, results of operations and cash flows for all periods presented have been made.  The Company’s business is seasonal and for this and other reasons operating results for interim periods may not be indicative of the Company’s full year results or future performance. As a result of the various related party agreements discussed in Note 4—Related Party Transactions, the operating results as presented are not necessarily indicative of the results that might have occurred if all agreements were with non-related third parties.  The Company manages its business under one reportable segment: advertising.

Estimates

Estimates—The preparation of the financial statements 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to the reserve for uncollectible accounts receivable, share-based compensation and income taxes. Actual results could differ from those estimates.

Concentration Of Credit Risk And Significant Customers

Concentration of Credit Risk and Significant Customers—Bad debts are provided for using the allowance for doubtful accounts method based on historical experience and management’s evaluation of outstanding receivables at the end of the period. Receivables are written off when management determines amounts are uncollectible. Trade accounts receivable are uncollateralized and represent a large number of geographically dispersed debtors. The collectability risk with respect to national and regional advertising is reduced by the fact that the majority of accounts receivable are with large, national advertising agencies that have strong reputations in the advertising industry and clients with stable financial positions. The Company has smaller contracts with thousands of local clients that are not individually significant.  As of July 2, 2015 and January 1, 2015, there were no advertising agency groups or individual customers through which the Company sources national advertising revenue representing more than 10% of the Company’s outstanding gross receivable balance.  During the three and six months ended July 2, 2015 and the three months ended June 26, 2014, there were no customers that accounted for more than 10% of revenue. During the six months ended June 26, 2014, revenue related to advertisements of NCM LLC’s founding members’ beverage supplier accounted for 11.3% of total revenue.

Share-Based Compensation

Share-Based Compensation—The Company has issued stock options and restricted stock to certain employees and restricted stock units to its independent directors. In 2015 and 2014, the Company did not grant stock options.  In 2015 and 2014, the restricted stock grants for Company officers vest upon the achievement of Company performance measures and/or service conditions, while non-officer grants vest only upon the achievement of service conditions.  Compensation expense of restricted stock that vests upon the achievement of Company performance measures is based on management’s financial projections and the probability of achieving the projections, which require considerable judgment. A cumulative adjustment is recorded to share-based compensation expense in periods that management changes its estimate of the number of shares of restricted stock expected to vest. Ultimately, the Company adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. Dividends are accrued when declared on unvested restricted stock that is expected to vest and are only paid with respect to shares that actually vest.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, 16,146, 3,672, 254,461 and 251,660 shares of restricted stock and restricted stock units vested, respectively.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, 57,890, 23,559, 90,405 and 52,447 stock options were exercised at a weighted average exercise price of $12.15, $12.73, $12.18 and $13.74 per share, respectively.

In connection with the Company’s March 2014 special cash dividend of $0.50 per share and pursuant to the antidilution adjustment terms of the Company’s Equity Incentive Plan, the exercise price and the number of shares of common stock subject to options held by the Company’s employees were adjusted to prevent dilution and restore their economic value that existed immediately before the special dividend.  The antidilution adjustments made with respect to such options resulted in a decrease in the range of exercise prices from $5.35 - $24.68 per share to $5.18 - $23.90 per share and an increase in the aggregate number of shares issuable upon exercise of such options by 98,589 shares, or 3.3%, of previously outstanding options.  The number of shares authorized under the Equity Incentive Plan increased by an equivalent number of shares.  There were no accounting consequences for the changes made to reduce the exercise prices and increase the number of underlying options as a result of the special cash dividend because the aggregate fair values of the awards immediately before and after the modifications were the same.

Consolidation

Consolidation—NCM, Inc. consolidates the accounts of NCM LLC under the provisions of ASC 810, Consolidation (“ASC 810”).  Under ASC 810, a managing member of a limited liability company (“LLC”) is presumed to control the LLC, unless the non-managing members have the right to dissolve the entity or remove the managing member without cause, or if the non-managing members have substantive participating rights.  The non-managing members of NCM LLC do not have dissolution rights or removal rights.  NCM, Inc. has evaluated the provisions of the NCM LLC membership agreement and has concluded that the various rights of the non-managing members are not substantive participation rights under ASC 810, as they do not limit NCM, Inc.’s ability to make decisions in the ordinary course of business.

The following table presents the changes in NCM, Inc.’s equity resulting from net income attributable to NCM, Inc. and transfers to or from noncontrolling interests (in millions):

	Six Months Ended
	July 2, 2015			June 26, 2014
Net income attributable to NCM, Inc.	$	1.1		$	0.5
NCM LLC equity issued for purchase of intangible asset		14.1			7.5
Income tax and other impacts of subsidiary ownership    changes		(5.4	)		(2.4	)
Change from net income attributable to NCM, Inc. and    transfers from noncontrolling interests	$	9.8		$	5.6

Income Taxes

Income Taxes—Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements.  Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740, Income Taxes.  The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized, which will be assessed on an on-going basis.   In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities.  The Company follows ASC 740-10-25, which requires the use of a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions.  Only tax positions that meet the more likely than not recognition threshold are recognized.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This guidance will be effective for annual periods beginning after December 15, 2017 and early adoption is permitted no earlier than fiscal years beginning after December 15, 2016. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its unaudited Condensed Consolidated Financial Statements or notes thereto, as well as, which transition method it intends to use.

In January 2015, the FASB issued Accounting Standards Update 2015-01, Income Statement Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”), which eliminates the concept of extraordinary items from GAAP.  Under ASU 2015-01, reporting entities will no longer be required to assess whether an underlying event or transaction is extraordinary, however, presentation and disclosure guidance for items that are unusual in nature or occur infrequently are retained, and are expanded to include items that are both unusual in nature and infrequently occurring.  This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  A reporting entity may apply ASU 2015-01 prospectively.  A reporting entity may also apply ASU 2015-01 retrospectively to all periods presented in the financial statements. The Company expects to adopt this accounting guidance in its first quarter of 2016 and does not expect the application of ASU 2015-01 to have a material impact in the unaudited Condensed Consolidated Financial Statements or notes thereto.

In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”).  ASU 2015-02 amends current consolidation guidance by modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with variable interest entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect the application of ASU 2015-02 to have a material impact in the unaudited Condensed Consolidated Financial Statements or notes thereto.

In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which provides guidance for simplifying the presentation of debt issuance costs.  ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums.  This guidance will be effective for fiscal years beginning after December 15, 2015, and early adoption is permitted for financial statements that have not been previously issued. The standard requires application on a retrospective basis and represents a change in accounting principle. The Company expects to adopt this accounting guidance in its first quarter of 2016 and will present debt issuance costs as a reduction of debt, rather than an asset.

In April 2015, the FASB issued Accounting Standards Update 2015-05, “Intangibles-Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”), which provides guidance on accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. The Company does not expect the application of ASU 2015-05 to have a material impact in the unaudited Condensed Consolidated Financial Statements or notes thereto. 

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The Company

6 Months Ended

Jul. 02, 2015

Accounting Policies [Abstract]

The Company

1. THE COMPANY

Description of Business

National CineMedia, Inc. (“NCM, Inc.”) was incorporated in Delaware as a holding company with the sole purpose of becoming a member and sole manager of National CineMedia, LLC (“NCM LLC”), a limited liability company owned by NCM, Inc., American Multi-Cinema, Inc. and AMC ShowPlace Theatres, Inc. (“AMC”), wholly owned subsidiaries of AMC Entertainment, Inc., Regal Cinemas, Inc. and Regal CineMedia Holdings, LLC, wholly owned subsidiaries of Regal Entertainment Group (“Regal”) and Cinemark Media, Inc. and Cinemark USA, Inc., wholly owned subsidiaries of Cinemark Holdings, Inc. (“Cinemark”).  The terms “NCM”, “the Company” or “we” shall, unless the context otherwise requires, be deemed to include the consolidated entity.  AMC, Regal and Cinemark and their affiliates are referred to in this document as “founding members”.  The Company operates the largest digital in-theatre network in North America, allowing NCM LLC to sell advertising (the “Services”) under long-term exhibitor services agreements (“ESAs”) with the founding members and certain third-party theatre circuits (known as “network affiliates”) under long-term network affiliate agreements, which have terms from three to twenty years.

As of July 2, 2015, NCM LLC had 130,716,532 common membership units outstanding, of which 59,012,038 (45.2%) were owned by NCM, Inc., 26,409,784 (20.2%) were owned by Regal, 25,631,046 (19.6%) were owned by Cinemark and 19,663,664 (15.0%) were owned by AMC. The membership units held by the founding members are exchangeable into NCM, Inc. common stock on a one-for-one basis.

Recent Transactions

On May 5, 2014, NCM, Inc. entered into an Agreement and Plan of Merger (the “Merger Agreement”) to merge with Screenvision, LLC (“Screenvision”).  On November 3, 2014, the Department of Justice filed a lawsuit seeking to enjoin the merger.  On March 16, 2015, the Company announced the termination of the Merger Agreement and the lawsuit was dismissed.  After the Merger Agreement was terminated, NCM LLC reimbursed NCM, Inc. for certain expenses pursuant to an indemnification agreement among NCM LLC, NCM, Inc. and the founding members.  On March 17, 2015, NCM LLC paid Screenvision an approximate $26.8 million termination payment on behalf of NCM, Inc. This payment was $2 million lower than the reverse termination fee contemplated by the Merger Agreement.  During the six months ended July 2, 2015, NCM LLC also either paid directly or reimbursed NCM, Inc. for the legal and other merger-related costs of approximately $15.0 million ($7.5 million incurred by NCM, Inc. during the year ended January 1, 2015 and approximately $7.5 million incurred by NCM LLC during the six months ended July 2, 2015). The Company and the founding members each bore a pro rata portion of the merger termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC.

Basis of Presentation

The Company has prepared the unaudited Condensed Consolidated Financial Statements and related notes of NCM, Inc. in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”).  Accordingly, certain information and footnote disclosures typically included in an annual report have been condensed or omitted for this quarterly report.  The balance sheet as of January 1, 2015 is derived from the audited financial statements of NCM, Inc.  Therefore, the unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s annual report on Form 10-K filed for the fiscal year ended January 1, 2015.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly in all material respects the financial position, results of operations and cash flows for all periods presented have been made.  The Company’s business is seasonal and for this and other reasons operating results for interim periods may not be indicative of the Company’s full year results or future performance. As a result of the various related party agreements discussed in Note 4—Related Party Transactions, the operating results as presented are not necessarily indicative of the results that might have occurred if all agreements were with non-related third parties.  The Company manages its business under one reportable segment: advertising.

Estimates—The preparation of the financial statements 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to the reserve for uncollectible accounts receivable, share-based compensation and income taxes. Actual results could differ from those estimates.

Significant Accounting Policies

The Company’s annual financial statements included in its Form 10-K filed for the fiscal year ended January 1, 2015 contain a complete discussion of the Company’s significant accounting policies. Following is additional information related to the Company’s accounting policies.

Concentration of Credit Risk and Significant Customers—Bad debts are provided for using the allowance for doubtful accounts method based on historical experience and management’s evaluation of outstanding receivables at the end of the period. Receivables are written off when management determines amounts are uncollectible. Trade accounts receivable are uncollateralized and represent a large number of geographically dispersed debtors. The collectability risk with respect to national and regional advertising is reduced by the fact that the majority of accounts receivable are with large, national advertising agencies that have strong reputations in the advertising industry and clients with stable financial positions. The Company has smaller contracts with thousands of local clients that are not individually significant.  As of July 2, 2015 and January 1, 2015, there were no advertising agency groups or individual customers through which the Company sources national advertising revenue representing more than 10% of the Company’s outstanding gross receivable balance.  During the three and six months ended July 2, 2015 and the three months ended June 26, 2014, there were no customers that accounted for more than 10% of revenue. During the six months ended June 26, 2014, revenue related to advertisements of NCM LLC’s founding members’ beverage supplier accounted for 11.3% of total revenue.

Share-Based Compensation—The Company has issued stock options and restricted stock to certain employees and restricted stock units to its independent directors. In 2015 and 2014, the Company did not grant stock options.  In 2015 and 2014, the restricted stock grants for Company officers vest upon the achievement of Company performance measures and/or service conditions, while non-officer grants vest only upon the achievement of service conditions.  Compensation expense of restricted stock that vests upon the achievement of Company performance measures is based on management’s financial projections and the probability of achieving the projections, which require considerable judgment. A cumulative adjustment is recorded to share-based compensation expense in periods that management changes its estimate of the number of shares of restricted stock expected to vest. Ultimately, the Company adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. Dividends are accrued when declared on unvested restricted stock that is expected to vest and are only paid with respect to shares that actually vest.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, 16,146, 3,672, 254,461 and 251,660 shares of restricted stock and restricted stock units vested, respectively.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, 57,890, 23,559, 90,405 and 52,447 stock options were exercised at a weighted average exercise price of $12.15, $12.73, $12.18 and $13.74 per share, respectively.

In connection with the Company’s March 2014 special cash dividend of $0.50 per share and pursuant to the antidilution adjustment terms of the Company’s Equity Incentive Plan, the exercise price and the number of shares of common stock subject to options held by the Company’s employees were adjusted to prevent dilution and restore their economic value that existed immediately before the special dividend.  The antidilution adjustments made with respect to such options resulted in a decrease in the range of exercise prices from $5.35 - $24.68 per share to $5.18 - $23.90 per share and an increase in the aggregate number of shares issuable upon exercise of such options by 98,589 shares, or 3.3%, of previously outstanding options.  The number of shares authorized under the Equity Incentive Plan increased by an equivalent number of shares.  There were no accounting consequences for the changes made to reduce the exercise prices and increase the number of underlying options as a result of the special cash dividend because the aggregate fair values of the awards immediately before and after the modifications were the same.

Consolidation—NCM, Inc. consolidates the accounts of NCM LLC under the provisions of ASC 810, Consolidation (“ASC 810”).  Under ASC 810, a managing member of a limited liability company (“LLC”) is presumed to control the LLC, unless the non-managing members have the right to dissolve the entity or remove the managing member without cause, or if the non-managing members have substantive participating rights.  The non-managing members of NCM LLC do not have dissolution rights or removal rights.  NCM, Inc. has evaluated the provisions of the NCM LLC membership agreement and has concluded that the various rights of the non-managing members are not substantive participation rights under ASC 810, as they do not limit NCM, Inc.’s ability to make decisions in the ordinary course of business.

The following table presents the changes in NCM, Inc.’s equity resulting from net income attributable to NCM, Inc. and transfers to or from noncontrolling interests (in millions):

	Six Months Ended
	July 2, 2015			June 26, 2014
Net income attributable to NCM, Inc.	$	1.1		$	0.5
NCM LLC equity issued for purchase of intangible asset		14.1			7.5
Income tax and other impacts of subsidiary ownership    changes		(5.4	)		(2.4	)
Change from net income attributable to NCM, Inc. and    transfers from noncontrolling interests	$	9.8		$	5.6

Income Taxes—Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements.  Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740, Income Taxes.  The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized, which will be assessed on an on-going basis.   In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities.  The Company follows ASC 740-10-25, which requires the use of a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions.  Only tax positions that meet the more likely than not recognition threshold are recognized.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This guidance will be effective for annual periods beginning after December 15, 2017 and early adoption is permitted no earlier than fiscal years beginning after December 15, 2016. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its unaudited Condensed Consolidated Financial Statements or notes thereto, as well as, which transition method it intends to use.

In January 2015, the FASB issued Accounting Standards Update 2015-01, Income Statement Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”), which eliminates the concept of extraordinary items from GAAP.  Under ASU 2015-01, reporting entities will no longer be required to assess whether an underlying event or transaction is extraordinary, however, presentation and disclosure guidance for items that are unusual in nature or occur infrequently are retained, and are expanded to include items that are both unusual in nature and infrequently occurring.  This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  A reporting entity may apply ASU 2015-01 prospectively.  A reporting entity may also apply ASU 2015-01 retrospectively to all periods presented in the financial statements. The Company expects to adopt this accounting guidance in its first quarter of 2016 and does not expect the application of ASU 2015-01 to have a material impact in the unaudited Condensed Consolidated Financial Statements or notes thereto.

In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”).  ASU 2015-02 amends current consolidation guidance by modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with variable interest entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect the application of ASU 2015-02 to have a material impact in the unaudited Condensed Consolidated Financial Statements or notes thereto.

In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which provides guidance for simplifying the presentation of debt issuance costs.  ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums.  This guidance will be effective for fiscal years beginning after December 15, 2015, and early adoption is permitted for financial statements that have not been previously issued. The standard requires application on a retrospective basis and represents a change in accounting principle. The Company expects to adopt this accounting guidance in its first quarter of 2016 and will present debt issuance costs as a reduction of debt, rather than an asset.

In April 2015, the FASB issued Accounting Standards Update 2015-05, “Intangibles-Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”), which provides guidance on accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. The Company does not expect the application of ASU 2015-05 to have a material impact in the unaudited Condensed Consolidated Financial Statements or notes thereto. 

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Related-Party Transactions (Tables)

6 Months Ended

Jul. 02, 2015

Related Party Transactions [Abstract]

Schedule Of Related Party Transactions

	Three Months Ended				Six Months Ended
Included in the Condensed Consolidated Statements of Income:	July 2, 2015		June 26, 2014		July 2, 2015		June 26, 2014
Revenue:
Beverage concessionaire revenue (included in    advertising revenue) (1)	$	9.0	$	9.8	$	16.6	$	19.2
Advertising inventory revenue (included in    advertising revenue) (2)		—		—		0.1		0.1
Operating expenses:
Theatre access fee (3)		19.2		17.9		36.4		35.3
Purchase of movie tickets and concession    products and rental of theatre space (included    in selling and marketing costs) (4)		0.3		0.3		0.5		0.5
Purchase of movie tickets and concession    products and rental of theatre space (included    in other administrative and other costs)		0.1		—		0.1		—
Non-operating expenses:
Interest income from notes receivable (included    in interest income) (5)		0.2		0.3		0.5		0.6

(1) For the three and six months ended July 2, 2015 and June 26, 2014, the founding members purchased 60 seconds of on-screen advertising time (with a right to purchase up to 90 seconds) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a rate specified by the ESA at a 30 second equivalent cost per thousand (“CPM”).

(2) The value of such purchases is calculated by reference to NCM LLC’s advertising rate card.

(3) Comprised of payments per theatre attendee and payments per digital screen with respect to the founding member theatres included in the Company’s network, including payments for access to higher quality digital cinema equipment.

(4) Used primarily for marketing to NCM LLC’s advertising clients.

(5) On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (AC JV, LLC) owned 32% by each of the founding members and 4% by NCM LLC.  In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member).  The notes bear interest at a fixed rate of 5.0% per annum, compounded annually.  Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing.

	As of
Included in the Condensed Consolidated Balance Sheets:	July2,2015		January1,2015
Purchase of movie tickets and concession    products (included in Prepaid expenses) (1)	$	0.4	$	—
Current portion of notes receivable - founding    members (2)		4.2		4.2
Long-term portion of notes receivable -    founding members (2)		16.6		16.6
Interest receivable on notes receivable (included    in other current assets) (2)		0.5		—
Common unit adjustments and integration    payments, net of amortization (included in    intangible assets) (3)		478.6		458.3
Current payable to founding members under tax    receivable agreement (4)		15.4		19.6
Long-term payable to founding members under    tax receivable agreement (4)		145.4		146.7

(1) Used primarily for marketing to NCM LLC’s advertising clients.

(2) Refer to the discussion of notes receivable from the founding members above.

(3) Refer to Note 3—Intangible Assets for further information on common unit adjustments and integration payments.

(4) The Company paid the founding members $17.2 million in the first quarter of 2015, of which $0.9 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $16.3 million was for the 2014 tax year.  The Company paid the founding members $25.1 million in the first quarter of 2014, of which $6.7 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $18.4 million was for the 2013 tax year.

Schedule Of Mandatory Distributions To Members

	Three Months Ended				Six Months Ended
	July2,2015		June26,2014		July2,2015		June26,2014
AMC	$	6.9	$	5.1	$	6.9	$	6.8
Cinemark		9.0		6.5		9.0		8.7
Regal		9.2		6.8		9.2		9.1
Total founding members		25.1		18.4		25.1		24.6
NCM, Inc.		20.7		15.6		20.7		20.9
Total	$	45.8	$	34.0	$	45.8	$	45.5

Schedule Of Amounts Due To Founding Members

	AMC			Cinemark			Regal		Total
Theatre access fees, net of beverage revenues	$	1.2			1.1			1.5	$	3.8
Cost and other reimbursement		(0.6	)		(0.3	)		0.1		(0.8	)
Distributions payable to founding members		6.9			9.0			9.2		25.1
Total amounts due to founding members	$	7.5		$	9.8		$	10.8	$	28.1

Amounts due to founding members as of January 1, 2015 were comprised of the following (in millions):

	AMC			Cinemark			Regal		Total
Theatre access fees, net of beverage revenues	$	0.8			0.8			1.2	$	2.8
Cost and other reimbursement		(0.6	)		(0.2	)		—		(0.8	)
Distributions payable to founding members		9.1			11.6			12.2		32.9
Total amounts due to founding members	$	9.3		$	12.2		$	13.4	$	34.9

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Derivative Instruments And Hedging Activities

6 Months Ended

Jul. 02, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments And Hedging Activities

8. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

During 2012, NCM LLC terminated interest rate swap agreements that were used to hedge its interest rate risk associated with its term loan.  Following the termination of the swap agreements, the variable interest rate on NCM LLC’s $270.0 million term loan is unhedged and as of July 2, 2015 and January 1, 2015, the Company did not have any outstanding derivative assets or liabilities.  A portion of the breakage fees paid to terminate the swap agreements was for swaps in which the underlying debt remained outstanding.  The balance in AOCI related to these swaps was fixed and was amortized into earnings over the remaining period during which interest payments were hedged, or February 13, 2015.  The Company considered the guidance in ASC 815, Derivatives and Hedging which states that amounts in AOCI shall be reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings.  As of July 2, 2015, there were no amounts outstanding related to these discontinued cash flow hedges.

The changes in AOCI by component for the six months ended July 2, 2015 and June 26, 2014 were as follows (in millions):

	Six Months Ended
	July2,2015			June26,2014			Income Statement Location
Balance at beginning of period	$	(0.4	)	$	(3.2	)
Amounts reclassified from AOCI:
Amortization on discontinued cash flow    hedges		1.6			5.0		Amortizationofterminatedderivatives
Total amounts reclassified from AOCI		1.6			5.0
Noncontrolling interest on reclassifications		(0.9	)		(2.7	)
Tax effect on reclassifications		(0.3	)		(0.9	)
Net other comprehensive income		0.4			1.4
Impact of subsidiary ownership changes		—			—
Balance at end of period	$	—		$	(1.8	)

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Related-Party Transactions

6 Months Ended

Jul. 02, 2015

Related Party Transactions [Abstract]

Related-Party Transactions

4.  RELATED PARTY TRANSACTIONS

Founding Member Transactions—In connection with NCM, Inc.’s initial public offering (“IPO”), the Company entered into several agreements to define and regulate the relationships among NCM, Inc., NCM LLC and the founding members. They include the following:

· ESAs. Under the ESAs, NCM LLC is the exclusive provider within the United States of advertising services in the founding members’ theatres (subject to pre-existing contractual obligations and other limited exceptions for the benefit of the founding members). The advertising services include the on-screen advertising of the FirstLook pre-show, use of the lobby entertainment network (“LEN”) and lobby promotions. Further, some advertising in the FirstLook pre-show is sold to NCM LLC’s founding members to be used to satisfy the founding members’ on-screen advertising commitments under their beverage concessionaire agreements. In consideration for access to the founding members’ theatre attendees for on-screen advertising and use of the founding members’ theatres for the LEN and lobby promotions, the founding members receive a monthly theatre access fee.

· Common Unit Adjustment Agreement. The common unit adjustment agreement provides a mechanism for adjusting membership units held by the founding members based on increases or decreases in the number of screens operated by each founding member.

· Tax Receivable Agreement. The tax receivable agreement provides for the effective payment by NCM, Inc. to the founding members of 90% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that is actually realized as a result of certain increases in NCM, Inc.’s proportionate share of tax basis in NCM LLC’s tangible and intangible assets resulting from the IPO and related transactions.

· Software License Agreement. At the date of the Company’s IPO, NCM LLC was granted a perpetual, royalty-free license from NCM LLC’s founding members to use certain proprietary software that existed at the time for the delivery of digital advertising and other content through the digital content network (“DCN”) to screens in the U.S. NCM LLC has made improvements to this software since the IPO date and NCM LLC owns those improvements, except for improvements that were developed jointly by NCM LLC and NCM LLC’s founding members, if any.

The following tables provide summaries of the transactions between the Company and the founding members (in millions):

	Three Months Ended				Six Months Ended
Included in the Condensed Consolidated Statements of Income:	July 2, 2015		June 26, 2014		July 2, 2015		June 26, 2014
Revenue:
Beverage concessionaire revenue (included in    advertising revenue) (1)	$	9.0	$	9.8	$	16.6	$	19.2
Advertising inventory revenue (included in    advertising revenue) (2)		—		—		0.1		0.1
Operating expenses:
Theatre access fee (3)		19.2		17.9		36.4		35.3
Purchase of movie tickets and concession    products and rental of theatre space (included    in selling and marketing costs) (4)		0.3		0.3		0.5		0.5
Purchase of movie tickets and concession    products and rental of theatre space (included    in other administrative and other costs)		0.1		—		0.1		—
Non-operating expenses:
Interest income from notes receivable (included    in interest income) (5)		0.2		0.3		0.5		0.6

(1) For the three and six months ended July 2, 2015 and June 26, 2014, the founding members purchased 60 seconds of on-screen advertising time (with a right to purchase up to 90 seconds) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a rate specified by the ESA at a 30 second equivalent cost per thousand (“CPM”).

(2) The value of such purchases is calculated by reference to NCM LLC’s advertising rate card.

(3) Comprised of payments per theatre attendee and payments per digital screen with respect to the founding member theatres included in the Company’s network, including payments for access to higher quality digital cinema equipment.

(4) Used primarily for marketing to NCM LLC’s advertising clients.

(5) On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (AC JV, LLC) owned 32% by each of the founding members and 4% by NCM LLC.  In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member).  The notes bear interest at a fixed rate of 5.0% per annum, compounded annually.  Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing.

	As of
Included in the Condensed Consolidated Balance Sheets:	July2,2015		January1,2015
Purchase of movie tickets and concession    products (included in Prepaid expenses) (1)	$	0.4	$	—
Current portion of notes receivable - founding    members (2)		4.2		4.2
Long-term portion of notes receivable -    founding members (2)		16.6		16.6
Interest receivable on notes receivable (included    in other current assets) (2)		0.5		—
Common unit adjustments and integration    payments, net of amortization (included in    intangible assets) (3)		478.6		458.3
Current payable to founding members under tax    receivable agreement (4)		15.4		19.6
Long-term payable to founding members under    tax receivable agreement (4)		145.4		146.7

(1) Used primarily for marketing to NCM LLC’s advertising clients.

(2) Refer to the discussion of notes receivable from the founding members above.

(3) Refer to Note 3—Intangible Assets for further information on common unit adjustments and integration payments.

(4) The Company paid the founding members $17.2 million in the first quarter of 2015, of which $0.9 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $16.3 million was for the 2014 tax year.  The Company paid the founding members $25.1 million in the first quarter of 2014, of which $6.7 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $18.4 million was for the 2013 tax year.

On March 16, 2015, the Company announced the termination of the Merger Agreement with Screenvision.  After the Merger Agreement was terminated, NCM LLC reimbursed NCM, Inc. for certain expenses pursuant to an indemnification agreement among NCM LLC, NCM, Inc. and the founding members.  On March 17, 2015, NCM LLC paid Screenvision an approximate $26.8 million termination payment on behalf of NCM, Inc. This payment was $2 million lower than the reverse termination fee contemplated by the Merger Agreement.  During the six months ended July 2, 2015, NCM LLC also either paid directly or reimbursed NCM, Inc. for the legal and other merger-related costs of approximately $15.0 million ($7.5 million incurred by NCM, Inc. during the year ended January 1, 2015 and approximately $7.5 million incurred by NCM LLC during the six months ended July 2, 2015). The Company and the founding members each bore a pro rata portion of the termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC.

Pursuant to the terms of the NCM LLC Operating Agreement in place since the completion of the Company’s IPO, NCM LLC is required to make mandatory distributions on a proportionate basis to its members of available cash, as defined in the NCM LLC Operating Agreement, on a quarterly basis in arrears.  Mandatory distributions of available cash for the three and six months ended July 2, 2015 and June 26, 2014 were as follows (in millions):

	Three Months Ended				Six Months Ended
	July2,2015		June26,2014		July2,2015		June26,2014
AMC	$	6.9	$	5.1	$	6.9	$	6.8
Cinemark		9.0		6.5		9.0		8.7
Regal		9.2		6.8		9.2		9.1
Total founding members		25.1		18.4		25.1		24.6
NCM, Inc.		20.7		15.6		20.7		20.9
Total	$	45.8	$	34.0	$	45.8	$	45.5

Due to the merger termination fee and related merger expenses, the mandatory distributions of available cash by NCM LLC to its founding members and NCM, Inc. for the three months ended April 2, 2015 was calculated as negative $25.5 million ($14.0 million for the founding members and $11.5 million for NCM, Inc.).  Therefore, there was no distribution made in the second quarter of 2015 relating to the available cash produced during the three months ended April 2, 2015.  Under the terms of the NCM LLC Operating Agreement, this negative amount will be netted against the available cash distributions for the second quarter of 2016, which will be paid in the third quarter of 2016.  Until the settlement in the third quarter of 2016, the remaining merger-related costs will be funded through borrowings on the NCM LLC revolving credit facility. 

The mandatory distributions of available cash by NCM LLC to its founding members for the three months ended July 2, 2015 of $25.1 million is included in amounts due to founding members on the unaudited Condensed Consolidated Balance Sheets as of July 2, 2015 and will be made in the third quarter of 2015.

Amounts due to founding members as of July 2, 2015 were comprised of the following (in millions):

	AMC			Cinemark			Regal		Total
Theatre access fees, net of beverage revenues	$	1.2			1.1			1.5	$	3.8
Cost and other reimbursement		(0.6	)		(0.3	)		0.1		(0.8	)
Distributions payable to founding members		6.9			9.0			9.2		25.1
Total amounts due to founding members	$	7.5		$	9.8		$	10.8	$	28.1

Amounts due to founding members as of January 1, 2015 were comprised of the following (in millions):

	AMC			Cinemark			Regal		Total
Theatre access fees, net of beverage revenues	$	0.8			0.8			1.2	$	2.8
Cost and other reimbursement		(0.6	)		(0.2	)		—		(0.8	)
Distributions payable to founding members		9.1			11.6			12.2		32.9
Total amounts due to founding members	$	9.3		$	12.2		$	13.4	$	34.9

AC JV, LLC Transactions—In December 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company, AC JV, LLC, owned 32% by each of the founding members and 4% by NCM LLC.  The Company accounts for its investment in AC JV, LLC under the equity method of accounting in accordance with ASC 323-30, Investments—Equity Method and Joint Ventures (“ASC 323-30”) because AC JV, LLC is a limited liability company with the characteristics of a limited partnership and ASC 323-30 requires the use of equity method accounting unless the Company’s interest is so minor that it would have virtually no influence over partnership operating and financial policies.  Although NCM LLC does not have a representative on AC JV, LLC’s Board of Directors or any voting, consent or blocking rights with respect to the governance or operations of AC JV, LLC, the Company concluded that its interest was more than minor under the accounting guidance.   The Company’s investment in AC JV, LLC was $1.4 million and $1.3 million as of July 2, 2015 and January 1, 2015, respectively.  Equity in earnings from AC JV, LLC was $0.0 million, $0.1 million, $0.1 million and $0.1 million for the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, respectively and is included in non-operating expenses in the unaudited Condensed Consolidated Statements of Income.

Related Party Affiliates—NCM LLC enters into network affiliate agreements with network affiliates for NCM LLC to provide in-theatre advertising at theatre locations that are owned by companies that are affiliates of certain of the founding members or directors of NCM, Inc.  Related party affiliate agreements are entered into at terms that are similar to those of the Company’s other network affiliates.  

NCM LLC has an agreement with LA Live, an affiliate of The Anschutz Corporation.  The Anschutz Corporation is a wholly-owned subsidiary of the Anschutz Company, which is the controlling stockholder of Regal.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, there was approximately $0.0 million, $0.1 million $0.1 million and $0.1 million, respectively, included in advertising operating costs related to LA Live, and there was approximately $0.1 million and $0.1 million of accounts payable with this company as of July 2, 2015 and January 1, 2015, respectively.

NCM LLC has an agreement with Starplex Operating L.P. (“Starplex”), an affiliate of one of NCM, Inc.’s former directors, who was a long-standing member of NCM, Inc.’s board of directors until his resignation during 2014.  During the three and six months ended June 26, 2014, there was approximately $0.8 million and $1.3 million included in advertising operating costs related to Starplex, and there was approximately $0.9 million of accounts payable with Starplex as of January 1, 2015.  Following the director’s resignation from NCM, Inc.’s board of directors in 2014, Starplex is no longer a related party.

Other Transactions—NCM LLC has an agreement with an interactive media company to sell some of its online inventory.  One of NCM, Inc.’s directors is also a director of this media company.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, this company generated approximately $0.0 million, $0.1 million, $0.0 million and $0.2 million, respectively, in revenue for NCM LLC and there was approximately $0.3 million and $0.3 million of accounts receivable due from this company as of July 2, 2015 and January 1, 2015, respectively.

NCM LLC has an agreement with AEG Live, an affiliate of The Anschutz Corporation, for AEG Live to showcase musical artists in NCM LLC’s FirstLook preshow.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, NCM LLC received approximately $0.5 million, $0.0 million, $0.9 million and $0.0 million, respectively, in revenue from AEG Live and as of July 2, 2015 and January 1, 2015, had $0.0 million and $0.4 million, respectively, of accounts receivable from AEG Live.

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Income Per Share

6 Months Ended

Jul. 02, 2015

Earnings Per Share [Abstract]

Income Per Share

2. INCOME PER SHARE

Basic income per share is computed on the basis of the weighted average number of common shares outstanding.  Diluted income per share is computed on the basis of the weighted average number of common shares outstanding plus the effect of potentially dilutive common stock options, restricted stock and restricted stock units using the treasury stock method.  The components of basic and diluted income per NCM, Inc. share are as follows:

	Three Months Ended				Six Months Ended
	July 2, 2015		June 26, 2014		July 2, 2015		June 26, 2014
Net income attributable to NCM, Inc. (in millions)	$	10.1	$	3.6	$	1.1	$	0.5
Weighted average shares outstanding:
Basic		58,974,581		58,722,025		58,931,628		58,670,412
Add: Dilutive effect of stock options and    restricted stock		620,438		278,102		428,617		335,971
Diluted	$	59,595,019	$	59,000,127	$	59,360,245	$	59,006,383
Income per NCM, Inc. share:
Basic	$	0.17	$	0.06	$	0.02	$	0.01
Diluted	$	0.17	$	0.06	$	0.02	$	0.01

The effect of 71,704,494, 69,543,579, 70,814,007 and 69,059,399 exchangeable NCM LLC common units held by the founding members for the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, respectively, have been excluded from the calculation of diluted weighted average shares and earnings per NCM, Inc. share as they were antidilutive.  NCM LLC common units do not participate in NCM, Inc. dividends.  In addition, there were 16,810 and 84,891, 61,329 and 164,038 stock options and non-vested (restricted) shares for the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, respectively, excluded from the calculation as they were antidilutive, primarily because exercise prices were above the average market value.

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Intangible Assets

6 Months Ended

Jul. 02, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

3. INTANGIBLE ASSETS

In accordance with NCM LLC’s Common Unit Adjustment Agreement with its founding members, on an annual basis NCM LLC determines the amount of common membership units to be issued to or returned by the founding members based on theatre additions or dispositions during the previous year.  During the first quarter of 2015 and 2014, NCM LLC issued 2,160,915 and 1,087,911 common membership units to its founding members, respectively, for the rights to exclusive access to the theatre screens and attendees added, net of dispositions by the founding members to NCM LLC’s network during the previous year.  NCM LLC recorded a net intangible asset of $31.4 million and $16.4 million during the three months ended April 2, 2015 and March 27, 2014, respectively, as a result of the Common Unit Adjustments.

In addition, NCM LLC’s Common Unit Adjustment Agreement requires that a Common Unit Adjustment occur for a specific founding member if its acquisition or disposition of theatres, in a single transaction or cumulatively since the most recent Common Unit Adjustment, results in an attendance increase or decrease in excess of two percent of the annual total attendance at the prior adjustment date.  If an existing on-screen advertising agreement with an alternative provider is in place with respect to any acquired theatres, the founding members may elect to receive common membership units related to those encumbered theatres in connection with the Common Unit Adjustment.  If the founding members make this election, then they are required to make payments on a quarterly basis in arrears in accordance with certain run-out provisions pursuant to the ESAs (“integration payments”). During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, the Company recorded a reduction to net intangible assets of $0.8 million, $0.6 million, $1.1 million and $0.8 million respectively, related to integration payments due from AMC and Cinemark related to their acquisitions of theatres from Rave Cinemas that are encumbered by an existing on-screen advertising agreement with an alternative provider.  During the three months ended July 2, 2015 and June 26, 2014 and the six months ended July 2, 2015 and June 26, 2014, AMC and Cinemark paid a total of $0.3 million, $0.2 million, $1.1 million, and $0.9 million respectively, in integration payments.

The Company’s intangible assets with its founding members are recorded at the fair market value of NCM, Inc.’s publicly traded stock as of the date on which the common membership units were issued.  The NCM LLC common membership units are fully convertible into NCM, Inc.’s common stock. In addition, the Company records intangible assets for up-front fees paid to network affiliates upon commencement of a network affiliate agreement. The Company’s intangible assets have a finite useful life and the Company amortizes the assets over the remaining useful life corresponding with the ESAs or the term of the network affiliate agreement.  If common membership units are issued to a founding member for newly acquired theatres that are subject to an existing on-screen advertising agreement with an alternative provider, the amortization of the intangible asset commences after the existing agreement expires and NCM LLC can utilize the theatres for all of its services.  Integration payments are calculated based upon the advertising cash flow that the Company would have generated if it had exclusive access to sell advertising in the theatres with pre-existing advertising agreements.

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Borrowings

6 Months Ended

Jul. 02, 2015

Debt Disclosure [Abstract]

Borrowings

5.  BORROWINGS

The following table summarizes NCM LLC’s total outstanding debt as of July 2, 2015 and January 1, 2015 and the significant terms of its borrowing arrangements (in millions):

	OutstandingBalanceasof
Borrowings	July 2, 2015		January 1, 2015		Maturity Date	Interest Rate
Revolving Credit Facility	$	65.0	$	22.0	November26,2019	(1)
Term Loans		270.0		270.0	November26,2019	(1)
Senior Unsecured Notes		200.0		200.0	July15,2021		7.875%
Senior Secured Notes		400.0		400.0	April15,2022		6.000%
Total	$	935.0	$	892.0

(1) The interest rates on the revolving credit facility and term loan are described below.

Senior Secured Credit Facility—As of July 2, 2015 and January 1, 2015, NCM LLC’s senior secured credit facility consisted of a $135.0 million revolving credit facility and a $270.0 million term loan.

Revolving Credit Facility—The revolving credit facility portion of NCM LLC’s total borrowings is available, subject to certain conditions, for general corporate purposes of NCM LLC in the ordinary course of business and for other transactions permitted under the senior secured credit facility, and a portion is available for letters of credit.  As of July 2, 2015, NCM LLC’s total availability under the revolving credit facility was $70.0 million.  The unused line fee is 0.50% per annum.  Borrowings under the revolving credit facility bear interest at NCM LLC’s option of either the LIBOR index plus an applicable margin or the base rate (Prime Rate or the Federal Funds Effective Rate, as defined in the senior secured credit facility) plus an applicable margin. The applicable margin for the revolving credit facility is determined quarterly and is subject to adjustment based upon a consolidated net senior secured leverage ratio for NCM LLC (the ratio of secured funded debt less unrestricted cash and cash equivalents, over a non-GAAP measure defined in the senior secured credit facility).  The weighted-average interest rate on the outstanding balance on the revolving credit facility as of July 2, 2015 was 2.57%.

Term Loans—The interest rate on the term loans is a rate chosen at NCM LLC’s option of either the LIBOR index plus 2.75% or the base rate (Prime Rate or the Federal Funds Effective Rate, as defined in the senior secured credit facility) plus 1.75%.  The weighted-average interest rate on the term loans as of July 2, 2015 was 2.94%.  Interest on the term loans is currently paid monthly.

The senior secured credit facility contains a number of covenants and financial ratio requirements, with which NCM LLC was in compliance as of July 2, 2015, including maintaining a consolidated net senior secured leverage ratio of equal to or less than 6.5 times on a quarterly basis.  In addition, there are no borrower distribution restrictions as long as NCM LLC’s consolidated net senior secured leverage ratio is below 6.5 times and NCM LLC is in compliance with its debt covenants.  As of July 2, 2015, NCM LLC’s consolidated net senior secured leverage ratio was 3.3 times (versus the covenant of 6.5 times).

Senior Unsecured Notes due 2021—On July 5, 2011, NCM LLC completed a private placement of $200.0 million in aggregate principal amount of 7.875% Senior Unsecured Notes (“Senior Unsecured Notes”) for which the registered exchange offering was completed on September 22, 2011. The Senior Unsecured Notes pay interest semi-annually in arrears on January 15 and July 15 of each year, which commenced January 15, 2012.  The notes are subordinated to all existing and future secured debt, including indebtedness under NCM LLC’s existing senior secured credit facility and the Senior Secured Notes defined below. The Senior Unsecured Notes contain certain non-maintenance covenants with which NCM LLC was in compliance as of July 2, 2015.

Senior Secured Notes due 2022—On July 27, 2012, NCM LLC completed a private placement of $400.0 million in aggregate principal amount of 6.00% Senior Secured Notes (the “Senior Secured Notes”) for which the registered exchange offering was completed on November 26, 2012.  The Senior Secured Notes pay interest semi-annually in arrears on April 15 and October 15 of each year, which commenced October 15, 2012.  The Senior Secured Notes are senior secured obligations of NCM LLC, rank the same as NCM LLC’s senior secured credit facility, subject to certain exceptions, and share in the same collateral that secures NCM LLC’s obligations under the senior secured credit facility.  The Senior Secured Notes contain certain non-maintenance covenants with which NCM LLC was in compliance as of July 2, 2015.

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Related-Party Transactions (Summary Of Transactions Between The Company And The Founding Members Included In Balance Sheets) (Details) - USD ($) $ in Millions		3 Months Ended
		Apr. 02, 2015	Mar. 27, 2014	Jul. 02, 2015	Jan. 01, 2015
Related Party Transaction [Line Items]
Prepaid expenses				$ 4.2	$ 3.6
Current portion of notes receivable - founding members	[1]			4.2	4.2
Long-term notes receivable, net of current portion - founding members	[1]			16.6	16.6
Interest receivable on notes receivable	[1]			0.5
Common unit adjustments and integration payments, net of amortization (included in Intangible assets)				508.8	488.6
Current payable to founding members under tax sharing agreement	[2]			15.4	19.6
Long-term payable to founding members under tax sharing agreement	[2]			145.4	146.7
Payments to affiliates for tax sharing agreement			$ 25.1
Founding Members [Member]
Related Party Transaction [Line Items]
Payments to affiliates for tax sharing agreement		$ 17.2
Founding Members [Member] | Tax Year 2009, 2010 and 2011 [Member]
Related Party Transaction [Line Items]
Payments to affiliates for tax sharing agreement		0.9	6.7
Founding Members [Member] | Tax Year 2014 [Member]
Related Party Transaction [Line Items]
Payments to affiliates for tax sharing agreement		$ 16.3
Founding Members [Member] | Tax Year 2013 [Member]
Related Party Transaction [Line Items]
Payments to affiliates for tax sharing agreement			$ 18.4
Common Unit Adjustments And Integration Payments [Member]
Related Party Transaction [Line Items]
Common unit adjustments and integration payments, net of amortization (included in Intangible assets)	[3]			478.6	$ 458.3
Purchase Of Movie Tickets And Concession Products [Member]
Related Party Transaction [Line Items]
Prepaid expenses	[4]			$ 0.4

[1] Refer to the discussion of notes receivable from the founding members above.

[2] The Company paid the founding members $17.2 million in the first quarter of 2015, of which $0.9 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $16.3 million was for the 2014 tax year. The Company paid the founding members $25.1 million in the first quarter of 2014, of which $6.7 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $18.4 million was for the 2013 tax year.

[3] Refer to Note 3—Intangible Assets for further information on common unit adjustments and integration payments.

[4] Used primarily for marketing to NCM LLC’s advertising clients.

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The Company (Tables)

6 Months Ended

Jul. 02, 2015

Accounting Policies [Abstract]

Changes In Equity

The following table presents the changes in NCM, Inc.’s equity resulting from net income attributable to NCM, Inc. and transfers to or from noncontrolling interests (in millions):

	Six Months Ended
	July 2, 2015			June 26, 2014
Net income attributable to NCM, Inc.	$	1.1		$	0.5
NCM LLC equity issued for purchase of intangible asset		14.1			7.5
Income tax and other impacts of subsidiary ownership    changes		(5.4	)		(2.4	)
Change from net income attributable to NCM, Inc. and    transfers from noncontrolling interests	$	9.8		$	5.6

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Derivative Instruments And Hedging Activities (Tables)

6 Months Ended

Jul. 02, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule Of Changes In AOCI By Component

The changes in AOCI by component for the six months ended July 2, 2015 and June 26, 2014 were as follows (in millions):

	Six Months Ended
	July2,2015			June26,2014			Income Statement Location
Balance at beginning of period	$	(0.4	)	$	(3.2	)
Amounts reclassified from AOCI:
Amortization on discontinued cash flow    hedges		1.6			5.0		Amortizationofterminatedderivatives
Total amounts reclassified from AOCI		1.6			5.0
Noncontrolling interest on reclassifications		(0.9	)		(2.7	)
Tax effect on reclassifications		(0.3	)		(0.9	)
Net other comprehensive income		0.4			1.4
Impact of subsidiary ownership changes		—			—
Balance at end of period	$	—		$	(1.8	)

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Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	Jul. 02, 2015	Jan. 01, 2015
Fair Value Disclosures [Abstract]
Promissory notes receivable from founding members	$ 20.8	$ 20.8

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (PARENTHETICAL) (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
Income Statement [Abstract]
Revenue from founding members	$ 9.0	$ 9.8	$ 16.7	$ 19.3

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY/(DEFICIT) (PARENTHETICAL) (UNAUDITED) - $ / shares	3 Months Ended		6 Months Ended
	Jul. 02, 2015	Jun. 26, 2014	Jul. 02, 2015	Jun. 26, 2014
Statement Of Stockholders Equity [Abstract]
Dividends per share	$ 0.22	$ 0.22	$ 0.44	$ 0.94

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The Company (Narrative) (Details) $ / shares in Units, $ in Millions		3 Months Ended			5 Months Ended	6 Months Ended		12 Months Ended
	Mar. 17, 2015 USD ($)	Jul. 02, 2015 USD ($) item customer $ / shares shares	Jun. 26, 2014 USD ($) customer $ / shares shares	Mar. 27, 2014 $ / shares shares	Jul. 02, 2015 USD ($) item shares	Jul. 02, 2015 USD ($) item customer $ / shares shares	Jun. 26, 2014 USD ($) $ / shares shares	Jan. 01, 2015 USD ($) item	Mar. 31, 2014 $ / shares
General Company Information [Line Items]
Common membership units outstanding		59,012,038			59,012,038	59,012,038
Percentage of common membership units outstanding						45.20%
Membership units exchangeable into common stock ratio						100.00%
Payments for merger-related costs | $					$ 15.0	$ 15.0
Merger termination fee and related merger costs | $		$ 0.9	$ 1.7			$ 34.3	$ 1.7
Number of shares of restricted stock and stock units vested		16,146	3,672			254,461	251,660
Stock options exercised in period		57,890	23,559			90,405	52,447
Weighted average exercise price | $ / shares		$ 12.15	$ 12.73			$ 12.18	$ 13.74
Special Dividend [Member]
General Company Information [Line Items]
Cash dividends declared, per share | $ / shares									$ 0.50
Antidilution Adjustment [Member]
General Company Information [Line Items]
Increase in aggregate number of shares issuable upon exercise				98,589
Percentage of previously outstanding options				3.30%
Accounts Receivable [Member]
General Company Information [Line Items]
Number of advertising agency groups contributing to more than 10% of outstanding gross receivable balance | item		0			0	0		0
Sales Revenue, Net [Member]
General Company Information [Line Items]
Number of customers contributing to more than 10% of revenue | customer		0	0			0
Sales Revenue, Net [Member] | Founding Member Advertising Revenue From Beverage Concessionaire Agreements [Member]
General Company Information [Line Items]
Percentage of revenue							11.30%
Screenvision, LLC [Member]
General Company Information [Line Items]
Merger termination payment | $	$ 26.8
Reverse termination fee, amount of lower payment | $	$ 2.0
Merger termination fee and related merger costs | $								$ 7.5
NCM, LLC. [Member]
General Company Information [Line Items]
Common membership units outstanding		130,716,532			130,716,532	130,716,532
NCM, LLC. [Member] | Screenvision, LLC [Member]
General Company Information [Line Items]
Merger termination fee and related merger costs | $						$ 7.5
Regal [Member]
General Company Information [Line Items]
Common membership units outstanding		26,409,784			26,409,784	26,409,784
Percentage of common membership units outstanding						20.20%
Cinemark [Member]
General Company Information [Line Items]
Common membership units outstanding		25,631,046			25,631,046	25,631,046
Percentage of common membership units outstanding						19.60%
AMC [Member]
General Company Information [Line Items]
Common membership units outstanding		19,663,664			19,663,664	19,663,664
Percentage of common membership units outstanding						15.00%
Minimum [Member]
General Company Information [Line Items]
Range of terms, in years						3 years
Weighted average exercise price | $ / shares				$ 5.35
Minimum [Member] | Antidilution Adjustment [Member]
General Company Information [Line Items]
Weighted average exercise price | $ / shares				5.18
Maximum [Member]
General Company Information [Line Items]
Range of terms, in years						20 years
Weighted average exercise price | $ / shares				24.68
Maximum [Member] | Antidilution Adjustment [Member]
General Company Information [Line Items]
Weighted average exercise price | $ / shares				$ 23.90

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Borrowings (Narrative) (Details) - USD ($)	6 Months Ended
	Jul. 02, 2015	Jan. 01, 2015
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Borrowing amount of credit facility	$ 135,000,000	$ 135,000,000
Remaining borrowing capacity of credit facility	$ 70,000,000
Unused line fee, percent	0.50%
Weighted-average interest rate	2.57%
Term Loans [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 270,000,000	$ 270,000,000
Weighted-average interest rate	2.94%
Term Loans [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate, percent	2.75%
Term Loans [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate, percent	1.75%
Senior Secured Credit Facility [Member]
Debt Instrument [Line Items]
Senior secured leverage ratio	330.00%
Senior Secured Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Senior secured leverage ratio	650.00%
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 200,000,000
Stated interest rate	7.875%
Date of first required interest payment	Jan. 15, 2012
Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument face amount	$ 400,000,000
Stated interest rate	6.00%
Date of first required interest payment	Oct. 15, 2012

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Subsequent Event

6 Months Ended

Jul. 02, 2015

Subsequent Events [Abstract]

Subsequent Event

9. SUBSEQUENT EVENT

On August 5, 2015, the Company declared a cash dividend of $0.22 per share (approximately $13.0 million) on each share of the Company’s common stock (not including outstanding restricted stock which will accrue dividends until the shares vest) to stockholders of record on August 20, 2015 to be paid on September 3, 2015.

On August 6, 2015, Kurt C. Hall notified the Board of Directors (“the Board”) of the Company of his intent to resign as President, Chief Executive Officer, Chairman of the Board and a Director of the Company and to resign from all positions he holds at National CineMedia, LLC upon the appointment of his successor CEO.  Mr. Hall’s decision to resign was not a result of any disagreement with the Company on any matters relating to the Company’s operations, policies or practices.

In connection with Mr. Hall’s anticipated resignation, the Company announced that it will implement its Chairman and CEO succession plan. The Board has retained an executive search firm to initiate a search for a new CEO to succeed Mr. Hall.  Upon the appointment of a new CEO, Scott N. Schneider, currently Lead Director of the Company’s Board of Directors, will succeed Mr. Hall as Chairman of the Board and Mr. Hall will continue in a 24-month consulting role as an advisor to the Board and CEO to facilitate a seamless transition and consult on other business matters.