DISCONTINUED OPERATIONS

9 Months Ended

Dec. 31, 2012

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 4—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 gross proceeds from the sales were approximately $1,472,000, and are subject to working capital and 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 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 December 31, 2012, the Company estimates that it is contractually entitled to receive an additional $6,275,000 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 and is still pending. Resolution is expected to 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:

	Transition Period
							Fiscal 2012			Fiscal 2011
	From Inception August 31, 2012 through December 31, 2012
(In thousands)				March 30, 2012 through August 30, 2012			52 Weeks Ended March 29, 2012			52 Weeks Ended March 31, 2011
	(Successor)			(Predecessor)			(Predecessor)			(Predecessor)
Revenues
Admissions	$	—		$	16,389		$	56,172		$	53,021
Concessions		—			6,099			20,192			19,111
Other theatre		—			548			2,253			2,429
Total revenues		—			23,036			78,617			74,561
Operating costs and expenses
Film exhibition costs		—			8,706			28,958			27,288
Concession costs		66			1,252			3,655			3,424
Operating expense		439			15,592			24,643			22,582
Rent		—			7,322			23,497			23,936
General and administrative costs		221			511			248			—
Depreciation and amortization		—			263			1,212			969
(Gain) loss on disposition		(37	)		(46,951	)		25			(569	)
Operating costs and expenses		689			(13,305	)		82,238			77,630
Operating income (loss)		(689	)		36,341			(3,621	)		(3,069	)
Investment income		(1	)		(12	)		(12	)		(7	)
Total other expense		(1	)		(12	)		(12	)		(7	)
Earnings (loss) before income taxes		(688	)		36,353			(3,609	)		(3,062	)
Income tax provision		—			1,200			—			—
Net earnings (loss)	$	(688	)	$	35,153		$	(3,609	)	$	(3,062	)