XML 17 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
INVESTMENTS (Tables)
 6 Months Ended
Jun. 30, 2013
INVESTMENTS  
Condensed financial information of the reporting entity's non-consolidated equity method investments

 

 
   Three Months Ended June 30, 2013  
(In thousands)
  NCM   DCIP   ORF   Other   Total  

Revenues

   $ 122,800   $ 45,022   $ 36,257   $ 4,070   $ 208,149  

Operating costs and expenses

     81,700     42,566     14,479     3,426     142,171  
                       

Net earnings (loss)

   $ 41,100   $ 2,456   $ 21,778   $ 644   $ 65,978  
                       


 

 
   Thirteen Weeks Ended June 28, 2012  
(In thousands)
  NCM   DCIP   ORF   Other   Total  

Revenues

   $ 110,100   $ 42,175   $ 32,900   $ 8,449   $ 193,624  

Operating costs and expenses

     108,300     32,973     24,500     9,215     174,988  
                       

Net earnings (loss)

   $ 1,800   $ 9,202   $ 8,400   $ (766 ) $ 18,636  
                       


 

 
   Six Months Ended June 30, 2013  
(In thousands)
  NCM   DCIP   ORF   Other   Total  

Revenues

   $ 205,000   $ 88,077   $ 101,434   $ 6,936   $ 401,447  

Operating costs and expenses

     158,300     73,813     87,334     6,963     326,410  
                       

Net earnings (loss)

   $ 46,700   $ 14,264   $ 14,100   $ (27 ) $ 75,037  
                       


 

 
   Twenty-six Weeks Ended June 28, 2012  
(In thousands)
  NCM   DCIP   ORF   Other   Total  

Revenues

   $ 189,200   $ 79,978   $ 68,596   $ 16,696   $ 354,470  

Operating costs and expenses

     184,200     64,005     60,716     18,285     327,206  
                       

Net earnings (loss)

   $ 5,000   $ 15,973   $ 7,880   $ (1,589 ) $ 27,264  
                       

        
Schedule of components of the Company's recorded equity in earnings of non-consolidated entities

 

 

(In thousands)
  Three Months
Ended
June 30, 2013		   Thirteen Weeks
Ended
June 28, 2012		   Six Months
Ended
June 30, 2013		   Twenty-six Weeks
Ended
June 28, 2012		  
 
   (Successor)
   (Predecessor)
   (Successor)
   (Predecessor)
  

National CineMedia, LLC

   $ 8,577   $ 446   $ 8,699   $ 9,533  

Digital Cinema Implementation Partners, LLC

     4,045     2,809     7,827     4,947  

Open Road Releasing, LLC

     10,269     4,200     7,050     3,940  

Other

     383     1,298     244     1,028  
                   

The Company's recorded equity in earnings

   $ 23,274   $ 8,753   $ 23,820   $ 19,448  
                   

        
Schedule of transactions with NMC

 

 

(In thousands)
  June 30, 2013   December 31, 2012  
 
   (Successor)
   (Successor)
  

Due from NCM for on-screen advertising revenue

   $ 2,887   $ 1,978  

Due to NCM for Exhibitor Services Agreement

     2,908     2,021  


 

(In thousands)
  Three Months
Ended
June 30, 2013		   Thirteen Weeks
Ended
June 28, 2012		   Six Months
Ended
June 30, 2013		   Twenty-six Weeks
Ended
June 28, 2012		  
 
   (Successor)
   (Predecessor)
   (Successor)
   (Predecessor)
  

Net NCM screen advertising revenues

   $ 8,495   $ 6,643   $ 16,572   $ 13,064  

NCM beverage advertising expense

     3,773     3,483     6,721     6,837  

        
Schedule of changes in the carrying amount of the entity's investment in NCM and equity in earnings of NCM

 

 

(In thousands)
  Investment in
NCM(1)		   Deferred
Revenue(2)		   Other
Comprehensive
(Income)		   Cash
Received		   Equity in
(Earnings)		   Advertising
(Revenue)		  

Ending balance December 31, 2012

   $ 245,047   $ (318,154 ) $ (797 )                  

Receipt of common units

     26,315     (26,315 )   —                    

Receipt of excess cash distributions

     (8,749 )   —     —   $ 8,749   $ —   $ —  

Amortization of deferred revenue

     —     7,136     —     —     —     (7,136 )

Unrealized gain from cash flow hedge

     700     —     (700 )   —     —     —  

Change in interest gain(3)

     2,716     —     —     —     (2,716 )   —  

Equity in earnings(4)

     7,365     —     —     —     (7,365 )   —  

Equity in loss from amortization of basis difference(5)

     (1,382 )   —     —     —     1,382     —  
                           

For the period ended or balance as of June 30, 2013

   $ 272,012   $ (337,333 ) $ (1,497 ) $ 8,749   $ (8,699 ) $ (7,136 )
                           
(1)
As of the date of the Merger, August 30, 2012, the Company's investment in NCM consisted of a single investment tranche (Tranche 1 Investment) consisting of 17,323,782 membership units recorded at fair value (Level 1). As a result of the Rave theatre acquisitions in December of 2012, and as provided under the Common Unit Adjustment Agreement dated as of February 13, 2007, the Company received 1,728,988 additional NCM common membership units in calendar 2013 valued at $26,315,000 and is recorded in a new tranche, (Tranche 2 Investment).

(2)
Represents the unamortized portion of the Exhibitor Services Agreement ("ESA") modifications payment received from NCM. Such amounts are being amortized to revenues over the remainder of the 30 year term of the ESA ending in 2036, using a units-of-revenue method, as described in ASC 470-10-35 (formerly EITF 88-18, Sales of Future Revenues). In connection with the Merger on August 30, 2012, the deferred revenue amounts related to the ESA were adjusted to estimated fair value.

(3)
A non-cash gain was recorded to adjust our investment balance due to NCM's issuance of 5,315,837 common membership units to another founding member, at a price per share in excess of the Company's average carrying amount per share.

(4)
Represents percentage of ownership equity in earnings on both Tranche 1 and Tranche 2 Investments.

(5)
Certain differences between the Company's carrying value and the Company's share of NCM's membership equity have been identified and are amortized to equity in earnings over the respective lives of the assets and liabilities.