DISCONTINUED OPERATIONS

6 Months Ended

Sep. 27, 2012

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 3—DISCONTINUED OPERATIONS

        In August of 2012, the Company closed one theatre with 20 screens located in Canada. The Company paid the landlord $7,562,000 to terminate the lease agreement. Also, the Company sold one theatre with 12 screens located in the United Kingdom in August of 2012. The proceeds received from the sale was $395,000, and is subject to working capital and other purchase price adjustments as described in the asset purchase agreement.

        In July of 2012, the Company sold six theatres with 134 screens located in Canada. The aggregate total proceeds from the sales were approximately $1,472,000, and are subject to working capital and other purchase price adjustments.

        The Company recorded gains, net of lease termination expense, on the disposition of the seven Canada theatres and the one United Kingdom theatre of approximately $39,000,000, primarily due to the write-off of long-term lease liabilities extinguished in connection with the sales and closure. The Company does not have any significant continuing involvement in the operations of these theatres after the disposition. The results of operations of these theatres have been classified as discontinued operations, and information presented for all periods reflects the new classification.

        In December of 2008, the Company sold all of its interests in Cinemex, which then operated 44 theatres with 493 screens primarily in the Mexico City Metropolitan Area, to Entretenimiento GM de Mexico S.A. de C.V. ("Entretenimiento"). As of September 27, 2012, the Company estimates that it is contractually entitled to receive an additional $6,416,000 of the purchase price related to tax payments and refunds. While the Company believes it is entitled to these amounts from Cinemex, the collection will require litigation, which was initiated by the Company on April 30, 2010. Resolution could take place over a prolonged period. In fiscal 2010, as a result of the litigation, the Company established an allowance for doubtful accounts related to this receivable and directly charged off the receivable amount as uncollectible. The Company does not have any significant continuing involvement in the operations of the Cinemex theatres after the disposition. Any purchase price tax collections received or legal fees paid related to the sale of the Cinemex theatres have been classified as discontinued operations for all periods presented.

        Components of amounts reflected as (earnings) loss from discontinued operations in the Company's Consolidated Statements of Operations are presented in the following table:

	Thirteen Weeks Ended									Twenty-six Weeks Ended
(In thousands)	From Inception August 31, 2012 through September 27, 2012			June 29, 2012 through August 30, 2012			Thirteen Weeks Ended September 29, 2011			From Inception August 31, 2012 through September 27, 2012			March 30, 2012 through August 30, 2012			Twenty-six Weeks Ended September 29, 2011
	(Successor)			(Predecessor)			(Predecessor)			(Successor)			(Predecessor)			(Predecessor)
Revenues
Admissions	$	—		$	3,465		$	15,519		$	—		$	16,389		$	30,124
Concessions		—			1,306			5,719			—			6,099			11,041
Other theatre		—			107			932			—			548			1,328
Total revenues		—			4,878			22,170			—			23,036			42,493
Operating costs and expenses
Film exhibition costs		—			1,852			8,054			—			8,706			15,764
Concession costs		—			342			1,086			—			1,252			1,989
Operating expense		—			9,424			6,845			—			15,592			13,638
Rent		—			1,435			5,969			—			7,322			11,737
Depreciation and amortization		—			22			362			—			263			601
(Gain) loss on disposition		(58	)		(47,000	)		18			(58	)		(46,951	)		27
Operating (income) costs and expenses		(58	)		(33,925	)		22,334			(58	)		(13,816	)		43,756
Operating income (loss)		58			38,803			(164	)		58			36,852			(1,263	)
Investment income		—			(10	)		(3	)		—			(12	)		(5	)
Total other expense		—			(10	)		(3	)		—			(12	)		(5	)
Earnings (loss) before income taxes		58			38,813			(161	)		58			36,864			(1,258	)
Income tax provision		—			1,200			—			—			1,200			—
Net earnings (loss)	$	58		$	37,613		$	(161	)	$	58		$	35,664		$	(1,258	)