XML 39 R18.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Pension And Other Liabilities | 12 Months Ended
--- | ---
Dec. 31, 2016
Pension And Other Liabilities [Abstract] |
Pension And Other Liabilities | NOT E 11 – Pension and Other Liabilities Other liabilities including pension are summarized as follows: ﻿ ﻿ ﻿
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | December 31, 2016 |  | December 31, 2015
﻿Current liabilities |  |  |  |  |  |
﻿Liability for demolition costs(1) |  | $ | 5,914 |  | $ | --
﻿ Lease liability(2) |  |  | 5,900 |  |  | 5,900
﻿ Accrued pension(3) |  |  | 2,223 |  |  | 1,539
﻿ Security deposit payable |  |  | 77 |  |  | 180
﻿ Other |  |  | 17 |  |  | 21
﻿ Other current liabilities |  | $ | 14,131 |  | $ | 7,640
﻿Other liabilities |  |  |  |  |  |
﻿ Straight-line rent liability |  | $ | 12,413 |  | $ | 10,823
﻿ Accrued pension(3) |  |  | 5,732 |  |  | 6,236
﻿ Lease make-good provision |  |  | 5,146 |  |  | 5,228
﻿ Environmental reserve |  |  | 1,656 |  |  | 1,656
﻿ Interest rate swap |  |  | 58 |  |  | 156
﻿ Deferred Revenue - Real Estate |  |  | 4,398 |  |  | 4,596
﻿ Acquired leases |  |  | 267 |  |  | 866
﻿ Other |  |  | 495 |  |  | 501
﻿ Other liabilities |  | $ | 30,165 |  | $ | 30,062
﻿ (1) Refer to Note 20 – Asset Impairment and Other Losses Recoverable through Insurance Claim for details on the estimation of the demolition costs for our Courtenay Central parking structure. (2) Represents the lease liability of the option associated with the ground lease purchase of the Village East Cinema. See below for more information. (3) Represents the pension liability associated with the Supplemental Executive Retirement Plan explained below. Lease Liability - Village East Purchase Option Our Village East lease i s a sub-lease of the ground underlying the cinema that is subject to a longer-term ground lease between SHC and an unrelated third party that expires June 1, 2031 (the “cinema ground lease”). Our Village East lease includes a call option pursuant to which we may purchase the cinema ground lease for $5.9 million at the end of the lease term. Additionally, our lease has a put option pursuant to which SHC may require our Company to purchase all or a portion of SHC’s interest in the existing cinema lease and the cinema ground lease at any time between July 1, 2013 and December 4, 2019. SHC’s put option may be exercised on one or more occasions in increments of not less than $100,000 each. Because our late Chairman, Chief Executive Officer, and controlling shareholder, Mr. James J. Cotter, Sr. was also the managing member of SHC, RDI and SHC are considered entities under common control. As a result, we have recorded the Village East Cinema building as a property asset of $4.7 million on our balance sheet based on the cost carry-over basis from an entity under common control with a corresponding lease liability of $5.9 million presented under other liabilities which accreted up to the $5.9 million liability through July 1, 2013 (see Note 1 9 – Related Party Transactions). As the put option has been exercisable by SHC since July 1, 2013, the lease liability ha s been classified as part of other current liabilities. Pension Liability - Supplemental Executive Retirement Plan On August 29, 2014, the Supplemental Executive Retirement Plan (“SERP”) that was effective since March 1, 2007, was ended and replaced with a new pension annuity. As a result of the termination of the SERP program, the accrued pension liability of $7.6 million was reversed and replaced with a new pension annuity liability of $7.5 million. The valuation of the liability is based on the present value of $10.2 million discounted at 4.25% over a 15-year term, resulting in a monthly payment of $56,944 payable to the estate of Mr. James J. Cotter, Sr. The discount rate of 4.25% has been applied since 2014 to determine the net periodic benefit cost and plan benefit obligation and is expected to be used in future years. The discounted value of $2.7 million (which is the difference between the estimated payout of $10.2 million and the present value of $7.5 million) will be amortized and expensed based on the 15-year term. In addition, the accumulated actuarial loss of $3.1 million recorded, as part of other comprehensive income, will also be amortized based on the 15-y ear term. As a result of the above, included in our other current and non-current liabilities are accrued pension costs of $8.0 million and $7.8 million as of December 31, 201 6 and 201 5, respectively. The benefits of our pension plans are fully vested and therefore no service costs were recognized 201 6 and 201 5. Our pension plans are unfunded. The change in the SERP pension benefit obligation and the funded status are as follows:
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | December 31, 2016 |  | December 31, 2015
﻿Benefit obligation at January 1 |  | $ | 7,775 |  | $ | 7,595
﻿ Interest cost |  |  | 180 |  |  | 180
﻿ Actuarial gain |  |  | -- |  |  | --
﻿Benefit obligation at December 31 |  | $ | 7,955 |  | $ | 7,775
﻿Funded status at December 31 |  | $ | (7,955) |  | $ | (7,775)
﻿ Amounts recognized in the balance sheet consists of: ﻿
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | December 31, 2016 |  | December 31, 2015
﻿Current liabilities |  | $ | 2,223 |  | $ | 1,539
﻿Other liabilities - Non current |  |  | 5,732 |  |  | 6,236
﻿Total pension liability |  | $ | 7,955 |  | $ | 7,775
﻿ The components of the net periodic benefit cost and other amounts recognized in other comprehensive income are as follows: ﻿
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | December 31, 2016 |  | December 31, 2015
﻿Net periodic benefit cost |  |  |  |  |  |
﻿Interest cost |  | $ | 180 |  | $ | 180
﻿Amortization of prior service costs |  |  | -- |  |  | --
﻿Amortization of net actuarial gain |  |  | 129 |  |  | 207
﻿Net periodic benefit cost |  | $ | 309 |  | $ | 387
﻿Items recognized in other comprehensive income |  |  |  |  |  |
﻿Net loss |  | $ | -- |  | $ | --
﻿Amortization of prior service cost |  |  | -- |  |  | --
﻿Amortization of net loss |  |  | (129) |  |  | (207)
﻿Total recognized in other comprehensive income |  | $ | (129) |  | $ | (207)
﻿Total recognized in net periodic benefit cost and other comprehensive income |  | $ | 180 |  | $ | 180
﻿ ﻿ Items not yet recognized as a component of net periodic pension cost consist of the following:
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | December 31, 2016 |  | December 31, 2015
﻿Unamortized actuarial loss |  | $ | 2,719 |  | $ | 2,848
﻿Accumulated other comprehensive loss |  | $ | 2,719 |  | $ | 2,848
﻿ The estimated unamortized actuarial loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year will be $207,000 (gross of any tax effects). The following table presents estimated future benefit payments for the next five years and thereafter as of December 31, 201 6:
﻿ |  |  |
﻿(Dollars in thousands) |  | Estimated Future Pension Payments
﻿2017 |  | $ | 2,223
﻿2018 |  |  | 684
﻿2019 |  |  | 684
﻿2020 |  |  | 684
﻿2021 |  |  | 684
﻿Thereafter |  |  | 2,996
﻿Total pension payments |  | $ | 7,955
Lease Make-Good Provision We recogniz e obligations for future leasehold restoration costs relating to properties that we use mostly on our cinema operations under operating lease arrangements. Each lease is unique to the negotiated conditions with the lessor, but in general most leases require for the removal of cinema-related assets and improvements. There are no assets specifically restricted to settle this obligation. ﻿ A reconciliation of the beginning and ending carrying amounts of the lease make-good provision is presented in the following table:
﻿ |  |  |  |  |  |
﻿(Dollars in thousands) |  | As of and for the year ended December 31, 2016 |  | As of and for the year ended December 31, 2015
﻿Lease make-good provision, at January 1 |  | $ | 5,228 |  | $ | 4,385
﻿Liabilities incurred during the year |  |  | 35 |  |  | 1,314
﻿Liabilities settled during the year |  |  | (365) |  |  | (381)
﻿Accretion expense |  |  | 262 |  |  | 212
﻿Effect of changes in foreign currency |  |  | (14) |  |  | (302)
﻿Lease make-good provision, at December 31 |  | $ | 5,146 |  | $ | 5,228
﻿

X
- References No definition available. + Details
Name: | us-gaap_PensionAndOtherPostretirementAndPostemploymentBenefitPlansLiabilitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65877416&loc=SL14450702-114947 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66047640&loc=d3e39622-114963 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration