CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2015

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Schedule of condensed statements of operations

Three months ended September 30, 2015:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
Admissions	$	—		$	440,280		$	982		$	—		$	441,262
Food and beverage		—			216,319			445			—			216,764
Other theatre		—			30,713			101			—			30,814
Total revenues		—			687,312			1,528			—			688,840
Operating costs and expenses
Film exhibition costs		—			232,920			470			—			233,390
Food and beverage costs		—			30,986			94			—			31,080
Operating expense		1			194,583			921			—			195,505
Rent		—			115,356			505			—			115,861
General and administrative:
Merger, acquisition and transaction costs		—			751			—			—			751
Other		—			18,704			2			—			18,706
Depreciation and amortization		—			57,996			12			—			58,008
Operating costs and expenses		1			651,296			2,004			—			653,301
Operating income (loss)		(1	)		36,016			(476	)		—			35,539
Other expense (income)
Equity in net (earnings) loss of subsidiaries		(9,881	)		476			—			9,405			—
Interest expense:
Corporate borrowings		22,626			30,002			—			(29,946	)		22,682
Capital and financing lease obligations		—			2,286			—			—			2,286
Equity in earnings of non-consolidated entities		—			(10,850	)		—			—			(10,850	)
Investment expense (income)		(24,924	)		(4,859	)		—			29,946			163
Total other expense (income)		(12,179	)		17,055			—			9,405			14,281
Earnings (loss) from continuing operations before income taxes		12,178			18,961			(476	)		(9,405	)		21,258
Income tax provision		—			9,080			—			—			9,080
Net earnings (loss)	$	12,178		$	9,881		$	(476	)	$	(9,405	)	$	12,178

Nine months ended September 30, 2015:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
Admissions	$	—		$	1,390,126		$	3,212		$	—		$	1,393,338
Food and beverage		—			666,398			1,406			—			667,804
Other theatre		—			101,538			363			—			101,901
Total revenues		—			2,158,062			4,981			—			2,163,043
Operating costs and expenses
Film exhibition costs		—			750,368			1,526			—			751,894
Food and beverage costs		—			95,097			298			—			95,395
Operating expense		75			585,430			2,672			—			588,177
Rent		—			347,364			1,440			—			348,804
General and administrative:
Merger, acquisition and transaction costs		—			2,590			—			—			2,590
Other		—			41,381			3			—			41,384
Depreciation and amortization		—			172,984			50			—			173,034
Operating costs and expenses		75			1,995,214			5,989			—			2,001,278
Operating income (loss)		(75	)		162,848			(1,008	)		—			161,765
Other expense (income)
Equity in net (earnings) loss of subsidiaries		(54,014	)		937			—			53,077			—
Other expense		—			9,273			—			—			9,273
Interest expense:
Corporate borrowings		73,836			98,472			—			(98,830	)		73,478
Capital and financing lease obligations		—			6,990			—			—			6,990
Equity in earnings of non-consolidated entities		—			(21,536	)		—			—			(21,536	)
Investment income		(82,136	)		(21,662	)		(71	)		98,830			(5,039	)
Total other expense (income)		(62,314	)		72,474			(71	)		53,077			63,166
Earnings (loss) from continuing operations before income taxes		62,239			90,374			(937	)		(53,077	)		98,599
Income tax provision		—			36,360			—			—			36,360
Net earnings (loss)	$	62,239		$	54,014		$	(937	)	$	(53,077	)	$	62,239

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

Schedule of condensed statement of comprehensive income

Three months ended September 30, 2015:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Net earnings (loss)	$	12,178		$	9,881		$	(476	)	$	(9,405	)	$	12,178
Equity in other comprehensive income (loss) of subsidiaries		(1,962	)		403			—			1,559			—
Unrealized foreign currency translation adjustment, net of tax		—			297			403			—			700
Pension and other benefit adjustments:
Amortization of net loss reclassified into general and administrative: other, net of tax		—			7			—			—			7
Marketable securities:
Unrealized net holding loss arising during the period, net of tax		—			(2,311	)		—			—			(2,311	)
Realized net gain reclassified into investment expense (income), net of tax		—			(5	)		—			—			(5	)
Equity method investees' cash flow hedge:
Unrealized net holding loss arising during the period, net of tax		—			(465	)		—			—			(465	)
Realized net loss reclassified into equity in earnings of non-consolidated entities, net of tax		—			112			—			—			112
Other comprehensive income (loss)		(1,962	)		(1,962	)		403			1,559			(1,962	)
Total comprehensive income (loss)	$	10,216		$	7,919		$	(73	)	$	(7,846	)	$	10,216

Nine months ended September 30, 2015:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Net earnings (loss)	$	62,239		$	54,014		$	(937	)	$	(53,077	)	$	62,239
Equity in other comprehensive income (loss) of subsidiaries		(11,698	)		307			—			11,391			—
Unrealized foreign currency translation adjustment, net of tax		—			674			307			—			981
Pension and other benefit adjustments:
Net loss arising during the period, net of tax		—			(45	)		—			—			(45	)
Prior service credit arising during the period, net of tax		—			746			—			—			746
Amortization of net gain reclassified into general and administrative: other, net of tax		—			(1,686	)		—			—			(1,686	)
Amortization of prior service credit reclassified into general and administrative: other, net of tax		—			(1,762	)		—			—			(1,762	)
Curtailment gain reclassified into general and administrative: other, net of tax		—			(7,239	)		—			—			(7,239	)
Settlement gain reclassified into general and administrative: other, net of tax		—			(175	)		—			—			(175	)
Marketable securities:
Unrealized net holding loss arising during the period, net of tax		—			(1,868	)		—			—			(1,868	)
Realized net gain reclassified into investment expense (income), net of tax		—			(154	)		—			—			(154	)
Equity method investees' cash flow hedge:
Unrealized net holding loss arising during the period, net of tax		—			(847	)		—			—			(847	)
Realized net loss reclassified into equity in earnings of non-consolidated entities, net of tax		—			351			—			—			351
Other comprehensive income (loss)		(11,698	)		(11,698	)		307			11,391			(11,698	)
Total comprehensive income (loss)	$	50,541		$	42,316		$	(630	)	$	(41,686	)	$	50,541

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			—
Unrealized foreign currency translation adjustment, net of tax		—			401			689			—			1,090
Pension and other benefit adjustments:
Amortization of net gain reclassified into general and administrative: other, net of tax		—			(211	)		—			—			(211	)
Amortization of prior service credit reclassified into general and administrative: other, net of tax		—			(254	)		—			—			(254	)
Marketable securities:
Unrealized net holding loss arising during the period, net of tax		—			(2,597	)		—			—			(2,597	)
Realized net gain reclassified into investment expense (income), net of tax		—			(10	)		—			—			(10	)
Equity method investees' cash flow hedge:
Unrealized net holding gain arising during the period, net of tax		—			408			—			—			408
Realized net loss reclassified into 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	)		—
Unrealized foreign currency translation adjustment, net of tax		—		402			255			—			657
Pension and other benefit adjustments:
Amortization of net gain reclassified into general and administrative: other, net of tax		—		(632	)		—			—			(632	)
Amortization of prior service credit reclassified into general and administrative: other, net of tax		—		(762	)		—			—			(762	)
Marketable securities:
Unrealized net holding gain arising during the period, net of tax		—		762			—			—			762
Realized net gain reclassified into investment expense (income), net of tax		—		(25	)		—			—			(25	)
Equity method investees' cash flow hedge:
Unrealized net holding gain arising during the period, net of tax		—		136			—			—			136
Realized net loss reclassified into 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

Schedule of condensed balance sheets

As of September 30, 2015:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Assets
Current assets:
Cash and equivalents	$	—		$	54,627		$	41,368		$	—		$	95,995
Receivables, net		(21	)		56,761			54			—			56,794
Deferred tax asset		—			108,635			—			—			108,635
Other current assets		—			82,894			1,506			—			84,400
Total current assets		(21	)		302,917			42,928			—			345,824
Investment in equity of subsidiaries		1,614,032			28,862			—			(1,642,894	)		—
Property, net		—			1,313,280			246			—			1,313,526
Intangible assets, net		—			219,017			—			—			219,017
Intercompany advances		1,638,115			(1,642,193	)		4,078			—			—
Goodwill		—			2,291,943			—			—			2,291,943
Deferred tax asset		—			62,926			—			—			62,926
Other long-term assets		22,638			411,214			21			—			433,873
Total assets	$	3,274,764		$	2,987,966		$	47,273		$	(1,642,894	)	$	4,667,109
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable	$	—		$	211,915		$	280		$	—		$	212,195
Accrued expenses and other liabilities		10,066			150,407			(136	)		—			160,337
Deferred revenues and income		—			167,936			2			—			167,938
Current maturities of corporate borrowings and capital and financing lease obligations		8,010			9,793			—			—			17,803
Total current liabilities		18,076			540,051			146			—			558,273
Corporate borrowings		1,741,441			5,555			—			—			1,746,996
Capital and financing lease obligations		—			95,489			—			—			95,489
Exhibitor services agreement		—			312,160			—			—			312,160
Other long-term liabilities		—			420,679			18,265			—			438,944
Total liabilities		1,759,517			1,373,934			18,411			—			3,151,862
Stockholder's equity		1,515,247			1,614,032			28,862			(1,642,894	)		1,515,247
Total liabilities and stockholder's equity	$	3,274,764		$	2,987,966		$	47,273		$	(1,642,894	)	$	4,667,109

As of December 31, 2014:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Assets
Current assets:
Cash and equivalents	$	403		$	174,117		$	41,635		$	—		$	216,155
Receivables, net		(21	)		99,224			49			—			99,252
Deferred tax asset		—			107,938			—			—			107,938
Other current assets		—			82,981			1,362			—			84,343
Total current assets		382			464,260			43,046			—			507,688
Investment in equity of subsidiaries		1,617,873			25,158			—			(1,643,031	)		—
Property, net		—			1,246,945			285			—			1,247,230
Intangible assets, net		—			225,515			—			—			225,515
Intercompany advances		1,673,001			(1,675,584	)		2,583			—			—
Goodwill		—			2,291,943			—			—			2,291,943
Deferred tax asset		—			73,817			—			—			73,817
Other long-term assets		13,129			404,454			21			—			417,604
Total assets	$	3,304,385		$	3,056,508		$	45,935		$	(1,643,031	)	$	4,763,797
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable	$	—		$	262,288		$	347		$	—		$	262,635
Accrued expenses and other liabilities		6,102			130,213			(53	)		—			136,262
Deferred revenues and income		—			213,881			1			—			213,882
Current maturities of corporate borrowings and capital and financing lease obligations		14,484			9,114			—			—			23,598
Total current liabilities		20,586			615,496			295			—			636,377
Corporate borrowings		1,769,576			5,556			—			—			1,775,132
Capital and financing lease obligations		—			101,533			—			—			101,533
Exhibitor services agreement		—			316,815			—			—			316,815
Other long-term liabilities		—			399,235			20,482			—			419,717
Total liabilities		1,790,162			1,438,635			20,777			—			3,249,574
Stockholder's equity		1,514,223			1,617,873			25,158			(1,643,031	)		1,514,223
Total liabilities and stockholder's equity	$	3,304,385		$	3,056,508		$	45,935		$	(1,643,031	)	$	4,763,797

Schedule of condensed statements of cash flows

Nine months ended September 30, 2015:

(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	$	15,451		$	192,612		$	1,269		$	—	$	209,332
Cash flows from investing activities:
Capital expenditures		—			(215,557	)		(17	)		—		(215,574	)
Investments in non-consolidated entities		—			(958	)		—			—		(958	)
Proceeds from the disposition of long-term assets		—			604			—			—		604
Other, net		—			(1,158	)		—			—		(1,158	)
Net cash used in investing activities		—			(217,069	)		(17	)		—		(217,086	)
Cash flows from financing activities:
Proceeds from issuance of Senior Subordinated Notes due 2025		600,000			—			—			—		600,000
Repurchase of Senior Subordinated Notes due 2020		(626,114	)		—			—			—		(626,114	)
Cash used to pay dividends to Holdings		(59,012	)		—			—			—		(59,012	)
Deferred financing costs		(11,978	)		—			—			—		(11,978	)
Principal payments under capital and financing lease obligations		—			(5,811	)		—			—		(5,811	)
Principle payments under Term Loan		(5,813	)		—			—			—		(5,813	)
Principal amount of coupon payment under Senior Subordinated Notes due 2020		(3,357	)		—			—			—		(3,357	)
Change in intercompany advances		90,420			(88,925	)		(1,495	)		—		—
Net cash used in financing activities		(15,854	)		(94,736	)		(1,495	)		—		(112,085	)
Effect of exchange rate changes on cash and equivalents		—			(297	)		(24	)		—		(321	)
Net decrease in cash and equivalents		(403	)		(119,490	)		(267	)		—		(120,160	)
Cash and equivalents at beginning of period		403			174,117			41,635			—		216,155
Cash and equivalents at end of period	$	—		$	54,627		$	41,368		$	—	$	95,995

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		—			(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 Senior Notes due 2019		(639,728	)		—			—			—		(639,728	)
Payment of initial public offering costs		—			(281	)		—			—		(281	)
Cash used to pay dividends to Holdings		(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