CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2014

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Schedule of condensed statements of operations

Three months ended September 30, 2014:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
Admissions	$	—		$	416,306		$	1,142		$	—		$	417,448
Food and beverage		—			188,591			474			—			189,065
Other theatre		—			27,293			98			—			27,391
Total revenues		—			632,190			1,714			—			633,904
Operating costs and expenses
Film exhibition costs		—			220,012			596			—			220,608
Food and beverage costs		—			27,095			114			—			27,209
Operating expense		49			176,972			928			—			177,949
Rent		—			111,715			543			—			112,258
General and administrative:
Merger, acquisition and transaction costs		—			78			—			—			78
Other		—			12,951			10			—			12,961
Depreciation and amortization		—			54,316			11			—			54,327
Operating costs and expenses		49			603,139			2,202			—			605,390
Operating income (loss)		(49	)		29,051			(488	)		—			28,514
Other expense (income)
Equity in net (earnings) loss of subsidiaries		(4,292	)		488			—			3,804			—
Other income		—			(11	)		—			—			(11	)
Interest expense:
Corporate borrowings		26,821			36,503			—			(36,427	)		26,897
Capital and financing lease obligations		—			2,448			—			—			2,448
Equity in earnings of non-consolidated entities		—			(13,087	)		—			—			(13,087	)
Investment expense (income)		(29,954	)		(6,292	)		—			36,427			181
Total other expense (income)		(7,425	)		20,049			—			3,804			16,428
Earnings (loss) from continuing operations before income taxes		7,376			9,002			(488	)		(3,804	)		12,086
Income tax provision		—			4,710			—			—			4,710
Net earnings (loss)	$	7,376		$	4,292		$	(488	)	$	(3,804	)	$	7,376

Nine months ended September 30, 2014:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
Admissions	$	—		$	1,301,733		$	3,402		$	—		$	1,305,135
Food and beverage		—			580,978			1,448			—			582,426
Other theatre		—			95,433			241			—			95,674
Total revenues		—			1,978,144			5,091			—			1,983,235
Operating costs and expenses
Film exhibition costs		—			688,307			1,621			—			689,928
Food and beverage costs		—			82,328			345			—			82,673
Operating expense		(15	)		543,979			2,961			—			546,925
Rent		—			339,501			1,562			—			341,063
General and administrative:
Merger, acquisition and transaction costs		—			1,012			—			—			1,012
Other		—			46,318			12			—			46,330
Depreciation and amortization		—			160,802			52			—			160,854
Operating costs and expenses		(15	)		1,862,247			6,553			—			1,868,785
Operating income (loss)		15			115,897			(1,462	)		—			114,450
Other expense (income)
Equity in net (earnings) loss of subsidiaries		(24,585	)		1,461			—			23,124			—
Other income		—			(8,397	)		—			—			(8,397	)
Interest expense:
Corporate borrowings		84,376			113,799			—			(113,631	)		84,544
Capital and financing lease obligations		—			7,459			—			—			7,459
Equity in earnings of non-consolidated entities		—			(17,300	)		—			—			(17,300	)
Investment income		(94,037	)		(27,097	)		(1	)		113,631			(7,504	)
Total other expense (income)		(34,246	)		69,925			(1	)		23,124			58,802
Earnings (loss) from continuing operations before income taxes		34,261			45,972			(1,461	)		(23,124	)		55,648
Income tax provision		—			21,700			—			—			21,700
Earnings (loss) from continuing operations		34,261			24,272			(1,461	)		(23,124	)		33,948
Gain from discontinued operations, net of income taxes		—			313			—			—			313
Net earnings (loss)	$	34,261		$	24,585		$	(1,461	)	$	(23,124	)	$	34,261

Three months ended September 30, 2013:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
Admissions	$	—		$	465,941		$	1,047		$	—		$	466,988
Food and beverage		—			201,164			448			—			201,612
Other theatre		—			27,332			52			—			27,384
Total revenues		—			694,437			1,547			—			695,984
Operating costs and expenses
Film exhibition costs		—			241,533			473			—			242,006
Food and beverage costs		—			26,191			93			—			26,284
Operating expense		5			181,717			908			—			182,630
Rent		—			111,365			500			—			111,865
General and administrative:
Merger, acquisition and transaction costs		—			299			—			—			299
Other		—			26,449			1			—			26,450
Depreciation and amortization		—			48,593			10			—			48,603
Operating costs and expenses		5			636,147			1,985			—			638,137
Operating income (loss)		(5	)		58,290			(438	)		—			57,847
Other expense (income)
Equity in net (earnings) loss of subsidiaries		(29,913	)		438			—			29,475			—
Other expense		—			110			—			—			110
Interest expense:
Corporate borrowings		32,359			42,620			—			(42,758	)		32,221
Capital and financing lease obligations		—			2,606			—			—			2,606
Equity in earnings of non-consolidated entities		—			(14,323	)		—			—			(14,323	)
Investment income		(35,916	)		(6,911	)		—			42,758			(69	)
Total other expense (income)		(33,470	)		24,540			—			29,475			20,545
Earnings (loss) from continuing operations before income taxes		33,465			33,750			(438	)		(29,475	)		37,302
Income tax provision		—			3,430			—			—			3,430
Earnings (loss) from continuing operations		33,465			30,320			(438	)		(29,475	)		33,872
Loss from discontinued operations, net of income taxes		—			(407	)		—			—			(407	)
Net earnings (loss)	$	33,465		$	29,913		$	(438	)	$	(29,475	)	$	33,465

Nine months ended September 30, 2013:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
Admissions	$	—		$	1,361,942		$	3,236		$	—		$	1,365,178
Food and beverage		—			587,634			1,392			—			589,026
Other theatre		—			82,031			216			—			82,247
Total revenues		—			2,031,607			4,844			—			2,036,451
Operating costs and expenses
Film exhibition costs		—			717,241			1,484			—			718,725
Food and beverage costs		—			79,735			297			—			80,032
Operating expense		174			531,084			2,801			—			534,059
Rent		—			337,730			1,483			—			339,213
General and administrative:
Merger, acquisition and transaction costs		—			1,952			—			—			1,952
Other		—			59,795			2			—			59,797
Depreciation and amortization		—			147,403			32			—			147,435
Operating costs and expenses		174			1,874,940			6,099			—			1,881,213
Operating income (loss)		(174	)		156,667			(1,255	)		—			155,238
Other expense (income)
Equity in net (earnings) loss of subsidiaries		(73,430	)		656			—			72,774			—
Other income		—			(184	)		—			—			(184	)
Interest expense:
Corporate borrowings		98,039			131,069			—			(131,404	)		97,704
Capital and financing lease obligations		—			7,914			—			—			7,914
Equity in (earnings) losses of non-consolidated entities		2			(38,132	)		(13	)		—			(38,143	)
Investment income		(109,568	)		(24,976	)		(266	)		131,404			(3,406	)
Total other expense (income)		(84,957	)		76,347			(279	)		72,774			63,885
Earnings (loss) from continuing operations before income taxes		84,783			80,320			(976	)		(72,774	)		91,353
Income tax provision		—			10,860			—			—			10,860
Earnings (loss) from continuing operations		84,783			69,460			(976	)		(72,774	)		80,493
Gain from discontinued operations, net of income taxes		—			3,970			320			—			4,290
Net earnings (loss)	$	84,783		$	73,430		$	(656	)	$	(72,774	)	$	84,783

Schedule of condensed statements of comprehensive income

Three months ended September 30, 2014:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Net earnings (loss)	$	7,376		$	4,292		$	(488	)	$	(3,804	)	$	7,376
Equity in other comprehensive income (loss) of subsidiaries		(1,440	)		689			—			751			—
Foreign currency translation adjustment, net of tax		—			401			689			—			1,090
Pension and other benefit adjustments:
Amortization of gains included in net periodic benefit costs, net of tax		—			(211	)		—			—			(211	)
Amortization of prior service credit included in net periodic benefit costs, net of tax		—			(254	)		—			—			(254	)
Unrealized gain on marketable securities:
Unrealized holding losses arising during the period, net of tax		—			(2,597	)		—			—			(2,597	)
Less: reclassification adjustment for gains included in investment income, net of tax		—			(10	)		—			—			(10	)
Unrealized gains from equity method investees' cash flow hedge:
Unrealized holding gains arising during the period, net of tax		—			408			—			—			408
Holding losses reclassified to equity in earnings of non-consolidated entities, net of tax		—			134			—			—			134
Other comprehensive income (loss)		(1,440	)		(1,440	)		689			751			(1,440	)
Total comprehensive income	$	5,936		$	2,852		$	201		$	(3,053	)	$	5,936

Nine months ended September 30, 2014:

(In thousands)	AMCE		Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Net earnings (loss)	$	34,261	$	24,585		$	(1,461	)	$	(23,124	)	$	34,261
Equity in other comprehensive income of subsidiaries		533		255			—			(788	)		—
Foreign currency translation adjustment, net of tax		—		402			255			—			657
Pension and other benefit adjustments:
Amortization of gains included in net periodic benefit costs, net of tax		—		(632	)		—			—			(632	)
Amortization of prior service credit included in net periodic benefit costs, net of tax		—		(762	)		—			—			(762	)
Unrealized gain on marketable securities:
Unrealized holding gains arising during the period, net of tax		—		762			—			—			762
Less: reclassification adjustment for gains included in investment income, net of tax		—		(25	)		—			—			(25	)
Unrealized gains from equity method investees' cash flow hedge:
Unrealized holding gains arising during the period, net of tax		—		136			—			—			136
Holding losses reclassified to equity in earnings of non-consolidated entities, net of tax		—		397			—			—			397
Other comprehensive income		533		533			255			(788	)		533
Total comprehensive income (loss)	$	34,794	$	25,118		$	(1,206	)	$	(23,912	)	$	34,794

Three months ended September 30, 2013:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Net earnings (loss)	$	33,465		$	29,913		$	(438	)	$	(29,475	)	$	33,465
Equity in other comprehensive loss of subsidiaries		(10,288	)		(1,357	)		—			11,645			—
Foreign currency translation adjustment, net of tax		—			(267	)		(1,357	)		—			(1,624	)
Pension and other benefit adjustments:
Amortization of gains included in net periodic benefit costs, net of tax		—			(20	)		—			—			(20	)
Unrealized gain on marketable securities:
Unrealized holding losses arising during the period, net of tax		—			(8,342	)		—			—			(8,342	)
Less: reclassification adjustment for gains included in investment income, net of tax		—			(280	)		—			—			(280	)
Unrealized gains from equity method investees' cash flow hedge:
Unrealized holding gains arising during the period, net of tax		—			21			—			—			21
Holding gains reclassified to equity in earnings of non-consolidated entities, net of tax		—			(43	)		—			—			(43	)
Other comprehensive loss		(10,288	)		(10,288	)		(1,357	)		11,645			(10,288	)
Total comprehensive income (loss)	$	23,177		$	19,625		$	(1,795	)	$	(17,830	)	$	23,177

Nine months ended September 30, 2013:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Net earnings (loss)	$	84,783		$	73,430		$	(656	)	$	(72,774	)	$	84,783
Equity in other comprehensive loss of subsidiaries		(2,660	)		(24	)		—			2,684			—
Foreign currency translation adjustment, net of tax		—			365			(24	)		—			341
Pension and other benefit adjustments:
Amortization of gains included in net periodic benefit costs, net of tax		—			(58	)		—			—			(58	)
Unrealized gain on marketable securities:
Unrealized holding losses arising during the period, net of tax		—			(4,841	)		—			—			(4,841	)
Less: reclassification adjustment for gains included in investment income, net of tax		—			(301	)		—			—			(301	)
Unrealized gains from equity method investees' cash flow hedge:
Unrealized holding gains (losses) arising during the period, net of tax		—			2,489			—			—			2,489
Holding gains reclassified to equity in earnings of non-consolidated entities, net of tax		—			(290	)		—			—			(290	)
Other comprehensive loss		(2,660	)		(2,660	)		(24	)		2,684			(2,660	)
Total comprehensive income (loss)	$	82,123		$	70,770		$	(680	)	$	(70,090	)	$	82,123

Schedule of condensed balance sheets

As of September 30, 2014:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Assets
Current assets:
Cash and equivalents	$	513		$	111,554		$	41,388		$	—		$	153,455
Receivables, net		(21	)		42,919			40			—			42,938
Deferred tax asset		—			90,091			—			—			90,091
Other current assets		—			79,151			1,584			—			80,735
Total current assets		492			323,715			43,012			—			367,219
Investment in equity of subsidiaries		1,613,427			21,620			—			(1,635,047	)		—
Property, net		—			1,213,747			289			—			1,214,036
Intangible assets, net		—			227,716			—			—			227,716
Intercompany advances		1,684,877			(1,685,369	)		492			—			—
Goodwill		—			2,291,943			—			—			2,291,943
Deferred tax asset		—			96,824			—			—			96,824
Other long-term assets		13,837			401,393			21			—			415,251
Total assets	$	3,312,633		$	2,891,589		$	43,814		$	(1,635,047	)	$	4,612,989
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable	$	—		$	181,286		$	441		$	—		$	181,727
Accrued expenses and other liabilities		14,430			134,097			(136	)		—			148,391
Deferred revenues and income		—			150,065			—			—			150,065
Current maturities of corporate borrowings and capital and financing lease obligations		14,225			8,919			—			—			23,144
Total current liabilities		28,655			474,367			305			—			503,327
Corporate borrowings		1,773,325			6,945			—			—			1,780,270
Capital and financing lease obligations		—			103,525			—			—			103,525
Exhibitor services agreement		—			320,630			—			—			320,630
Other long-term liabilities		—			372,695			21,889			—			394,584
Total liabilities		1,801,980			1,278,162			22,194			—			3,102,336
Stockholder's equity		1,510,653			1,613,427			21,620			(1,635,047	)		1,510,653
Total liabilities and stockholder's equity	$	3,312,633		$	2,891,589		$	43,814		$	(1,635,047	)	$	4,612,989

As of December 31, 2013:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Assets
Current assets:
Cash and equivalents	$	485		$	501,989		$	41,837		$	—		$	544,311
Receivables, net		(10	)		106,096			62			—			106,148
Deferred tax asset		—			110,097			—			—			110,097
Other current assets		—			79,433			1,391			—			80,824
Total current assets		475			797,615			43,290			—			841,380
Investment in equity of subsidiaries		1,617,629			18,903			—			(1,636,532	)		—
Property, net		—			1,179,666			88			—			1,179,754
Intangible assets, net		—			234,319			—			—			234,319
Intercompany advances		1,953,778			(1,953,145	)		(633	)		—			—
Goodwill		—			2,291,943			—			—			2,291,943
Deferred tax asset		—			96,824			—			—			96,824
Other long-term assets		7,841			394,031			632			—			402,504
Total assets	$	3,579,723		$	3,060,156		$	43,377		$	(1,636,532	)	$	5,046,724
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable	$	—		$	267,675		$	488		$	—		$	268,163
Accrued expenses and other liabilities		306			170,676			(62	)		—			170,920
Deferred revenues and income		—			202,833			—			—			202,833
Current maturities of corporate borrowings and capital and financing lease obligations		7,750			8,330			—			—			16,080
Total current liabilities		8,056			649,514			426			—			657,996
Corporate borrowings		2,062,728			6,944			—			—			2,069,672
Capital and financing lease obligations		—			109,258			—			—			109,258
Exhibitor services agreement		—			329,913			—			—			329,913
Other long-term liabilities		—			346,898			24,048			—			370,946
Total liabilities		2,070,784			1,442,527			24,474			—			3,537,785
Stockholder's equity		1,508,939			1,617,629			18,903			(1,636,532	)		1,508,939
Total liabilities and stockholder's equity	$	3,579,723		$	3,060,156		$	43,377		$	(1,636,532	)	$	5,046,724

Schedule of condensed statements of cash flows

Nine months ended September 30, 2014:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments		Consolidated AMC Entertainment Inc.
Cash flows from operating activities:
Net cash provided by operating activities	$	16,283		$	101,583		$	724		$	—	$	118,590
Cash flows from investing activities:
Capital expenditures		—			(182,928	)		(40	)		—		(182,968	)
Investments in non-consolidated entities, net		—			(1,471	)		—			—		(1,471	)
Proceeds from the disposition of long-term assets		—			9			—			—		9
Other, net		—			939			—			—		939
Net cash used in investing activities		—			(183,451	)		(40	)		—		(183,491	)
Cash flows from financing activities:
Proceeds from issuance of Senior Subordinated Notes due 2022		375,000			—			—			—		375,000
Repurchase of Subordinated Notes due 2019		(639,728	)		—			—			—		(639,728	)
Payment of initial public offering costs		—			(281	)		—			—		(281	)
Cash used to pay dividends to Parent		(39,003	)		—			—			—		(39,003	)
Deferred financing costs		(7,952	)		—			—			—		(7,952	)
Principal payments under capital and financing lease obligations		—			(5,144	)		—			—		(5,144	)
Principle payments under Term Loan		(5,813	)		—			—			—		(5,813	)
Principal amount of coupon payment under Senior Subordinated Notes due 2020		(3,052	)		—			—			—		(3,052	)
Change in intercompany advances		304,293			(303,168	)		(1,125	)		—		—
Net cash used in financing activities		(16,255	)		(308,593	)		(1,125	)		—		(325,973	)
Effect of exchange rate changes on cash and equivalents		—			26			(8	)		—		18
Net increase (decrease) in cash and equivalents		28			(390,435	)		(449	)		—		(390,856	)
Cash and equivalents at beginning of period		485			501,989			41,837			—		544,311
Cash and equivalents at end of period	$	513		$	111,554		$	41,388		$	—	$	153,455

Nine months ended September 30, 2013:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments		Consolidated AMC Entertainment Inc.
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	30,193		$	174,272		$	(243	)	$	—	$	204,222
Cash flows from investing activities:
Capital expenditures		—			(175,353	)		(8	)		—		(175,361	)
Investments in non-consolidated entities, net		—			(3,028	)		15			—		(3,013	)
Acquisition of Rave theatres		—			(1,128	)		—			—		(1,128	)
Proceeds from the disposition of long-term assets		—			4,646			—			—		4,646
Other, net		—			(5,422	)		—			—		(5,422	)
Net cash provided by (used in) investing activities		—			(180,285	)		7			—		(180,278	)
Cash flows from financing activities:
Proceeds from issuance of Term Loan due 2020		773,063			—			—			—		773,063
Repayment of Term Loan due 2016		(464,088	)		—			—			—		(464,088	)
Repayment of Term Loan due 2018		(296,250	)		—			—			—		(296,250	)
Deferred financing costs		(9,106	)		—			—			—		(9,106	)
Principal payments under capital and financing lease obligations		—			(4,651	)		—			—		(4,651	)
Principle payments under Term Loan		(5,876	)		—			—			—		(5,876	)
Payment of construction payables		—			(19,404	)		—			—		(19,404	)
Change in intercompany advances		(28,034	)		27,809			225			—		—
Net cash provided by (used in) financing activities		(30,291	)		3,754			225			—		(26,312	)
Effect of exchange rate changes on cash and equivalents		—			(65	)		(10	)		—		(75	)
Net decrease in cash and equivalents		(98	)		(2,324	)		(21	)		—		(2,443	)
Cash and equivalents at beginning of period		308			89,168			41,452			—		130,928
Cash and equivalents at end of period	$	210		$	86,844		$	41,431		$	—	$	128,485