GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2013

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 6—GOODWILL AND OTHER INTANGIBLE ASSETS

Activity of goodwill is presented below:

(In thousands)	Total

	(Successor)
Balance as a result of Merger on August 30, 2012	$	2,172,272
Increase in Goodwill from the acquisition of Rave theatres		79,024


Balance as of December 31, 2012		2,251,296


Increase in Goodwill from purchase price allocation adjustments related to the Merger		31,951
Increase in Goodwill from purchase price allocation adjustments related to the Rave acquisition		8,696


Balance as of December 31, 2013	$	2,291,943

Detail of other intangible assets is presented below:

		December 31, 2013 (Successor)					December 31, 2012 (Successor)

(In thousands)	Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortizable Intangible Assets:
Favorable leases	1 to 45 years	$	112,496	$	(8,053	)	$	112,496	$	(2,158	)
Management contracts	1 to 7 years		4,690		(1,103	)		4,690		(278	)
Non-compete agreement	2 years		3,800		(1,678	)		3,800		(404	)
NCM tax receivable agreement	23 years		20,900		(1,133	)		20,900		(266	)


Total, amortizable		$	141,886	$	(11,967	)	$	141,886	$	(3,106	)




Unamortized Intangible Assets:
AMC trademark		$	104,400				$	104,400


Total, unamortizable		$	104,400				$	104,400

Amortization expense associated with the intangible assets noted above is as follows:

(In thousands)	12 Months Ended December 31, 2013		From Inception August 31, 2012 through December 31, 2012		March 30, 2012 through August 30, 2012		52 Weeks Ended March 29, 2012

	(Successor)		(Successor)		(Predecessor)		(Predecessor)
Recorded amortization	$	9,011	$	3,106	$	5,016	$	14,469

Estimated annual amortization for the next five calendar years for intangible assets is projected below:

(In thousands)		2014			2015			2016			2017			2018

Projected annual amortization		$	8,783		$	8,372		$	7,516		$	7,401		$	7,132

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details