NOTE 2—INVESTMENT

Investments in non-consolidated affiliates and certain other investments accounted for under the equity method generally include all entities in which the Company or its subsidiaries have significant influence, but not more than 50% voting control, and are recorded in the Consolidated Balance Sheets in other long-term assets. Investments in non-consolidated affiliates as of September 30, 2015, include interests in National CineMedia, LLC ("NCM" or "NCM LLC") of 15.04%, Digital Cinema Implementation Partners, LLC ("DCIP") of 29%, Open Road Releasing, LLC, operator of Open Road Films, LLC ("Open Road Films") of 50%, and AC JV, LLC ("AC JV"), owner of Fathom Events of 32%. The Company also has partnership interests in two U.S. motion picture theatres and one IMAX screen of 50% ("Theatre Partnerships"). Indebtedness held by equity method investees is non-recourse to the Company.

Amounts payable to Theatre Partnerships were $2,628,000 and $6,194,000 as of September 30, 2015 and December 31, 2014, respectively.

RealD Inc. Common Stock. The Company holds an investment in RealD Inc. common stock, which is accounted for as an equity security, available for sale, and is recorded in the Consolidated Balance Sheets in other long-term assets at fair value (Level 1).

Equity in Earnings (Losses) of Non-Consolidated Entities

Aggregated condensed financial information of the Company's significant non-consolidated equity method investments is shown below:

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Revenues	$	154,838	$	142,400	$	433,831	$	398,584
Operating costs and expenses		99,850		97,641		341,178		305,632

Net earnings	$	54,988	$	44,759	$	92,653	$	92,952

The components of the Company's recorded equity in earnings (losses) of non-consolidated entities are as follows:

	Three Months Ended					Nine Months Ended
(In thousands)	September 30, 2015			September 30, 2014		September 30, 2015			September 30, 2014
National CineMedia, LLC	$	4,431		$	3,249	$	3,360		$	5,258
Digital Cinema Implementation Partners, LLC		6,253			5,537		16,844			15,082
Open Road Releasing, LLC		—			3,630		(430	)		(4,450	)
AC JV, LLC		(243	)		321		983			959
Other		409			350		779			451

The Company's recorded equity in earnings	$	10,850		$	13,087	$	21,536		$	17,300

NCM Transactions. As of September 30, 2015, the Company owns 19,663,664 common membership units, or a 15.04% interest, in NCM. The estimated fair value of the units in NCM was approximately $263,886,000, based on the publically quoted price per share of NCM, Inc. on September 30, 2015 of $13.42 per share. See Note 10—Commitments and Contingencies for information regarding the termination of the Screenvision, LLC merger agreement and the expenses associated with the termination.

The Company recorded the following related party transactions with NCM:

(In thousands)	September 30, 2015		December 31, 2014
Due from NCM for on-screen advertising revenue	$	1,513	$	2,072
Due to NCM for Exhibitor Services Agreement		856		1,784
Promissory note payable to NCM		6,944		6,944

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
NCM screen advertising revenues, net of screen integration fee	$	8,756	$	8,482	$	26,727	$	25,854
NCM beverage advertising expense		1,321		2,887		6,836		9,077

The Company recorded the following changes in the carrying amount of its investment in NCM and equity in earnings of NCM during the nine months ended September 30, 2015:

(In thousands)	Investment in NCM(1)			Exhibitor Services Agreement(2)			Other Comprehensive (Income)			Cash Received		Equity in (Earnings)			Advertising (Revenue)
Ending balance December 31, 2014	$	265,839		$	(316,815	)	$	(3,780	)
Receipt of common units(3)		6,812			(6,812	)		—
Receipt of excess cash distributions		(15,953	)		—			—		$	15,953	$	—		$	—
Amortization of deferred revenue		—			11,467			—			—		—			(11,467	)
Unrealized gain from cash flow hedge		234			—			(234	)		—		—			—
Equity in earnings and loss from amortization of basis difference(4)(5)		3,360			—			—			—		(3,360	)		—

For the period ended or balance as of September 30, 2015	$	260,292		$	(312,160	)	$	(4,014	)	$	15,953	$	(3,360	)	$	(11,467	)


(1)	After Wanda acquired Holdings on 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. Subsequent membership units received as provided under the Common Unit Adjustment Agreement dated as of February 13, 2007, are recorded in a separate tranche (Tranche 2 Investments).
(2)	Represents the unamortized portion of the Exhibitor Services Agreement ("ESA") with NCM. Such amounts are being amortized to other theatre 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).
(3)	In March 2015, the Company received 469,163 membership units recorded at a fair value (Level 1) of $14.52 per unit with a corresponding credit to the ESA.
(4)	Reflects percentage ownership of NCM's 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.

During the nine months ended September 30, 2015 and the nine months ended September 30, 2014, the Company received payments of $5,352,000 and $8,045,000, respectively, related to the NCM tax receivable agreement. The receipts are recorded in investment expense (income), net of related amortization, for the NCM tax receivable agreement intangible asset.

DCIP Transactions. The Company will make capital contributions to DCIP for projector and installation costs in excess of an agreed upon cap ($68,000 per system for digital conversions and as of September 30, 2015, $39,000 for new build locations). The Company pays equipment rent monthly and records the equipment rental expense on a straight-line basis over 12 years.

The Company recorded the following related party transactions with DCIP:

(In thousands)	September 30, 2015		December 31, 2014
Due from DCIP for equipment and warranty purchases	$	1,357	$	1,048
Deferred rent liability for digital projectors		8,801		9,031

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Digital equipment rental expense	$	1,350	$	1,268	$	4,026	$	5,270
Warranty reimbursements from DCIP		1,335		934		3,716		2,590

Open Road Films Transactions. For the three months and nine months ended September 30, 2015, the Company suspended equity method accounting for its investment in Open Road Films when the negative investment in Open Road Films reached the Company's capital commitment of $10,000,000. The Company's share of cumulative losses from Open Road Films in excess of the Company's capital commitment was $2,060,000 as of September 30, 2015. For the three months and nine months ended September 30, 2014, the Company resumed the equity method accounting where the Company had previously suspended the equity method when the negative investment in Open Road Films reached the Company's capital commitment.

The Company recorded the following related party transactions with Open Road Films:

(In thousands)	September 30, 2015		December 31, 2014
Due from Open Road Films	$	1,945	$	2,560
Film rent payable to Open Road Films		84		709

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Gross film exhibition cost on Open Road Films	$	660	$	900	$	4,100	$	10,000

AC JV Transactions. The Company recorded the following related party transactions with AC JV:

(In thousands)		September 30, 2015			December 31, 2014
Due to AC JV for Fathom Events programming		$	520		$	333

	Three Months Ended				Nine Months Ended
(In thousands)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Gross exhibition cost on Fathom Events programming	$	2,228	$	1,961	$	6,297	$	4,476