|
NOTE 7—THEATRE AND OTHER CLOSURE AND DISPOSITION OF ASSETS
A rollforward of reserves for theatre and other closure is as follows:
|
|
|
|
|
|
|
|
|
|
|
Twenty-six Weeks Ended |
|
|
(In thousands) |
|
September 29,
2011 |
|
September 30,
2010 |
|
|
Beginning balance |
|
$ |
73,852 |
|
$ |
6,694 |
|
| |
Theatre and other closure expense |
|
|
4,066 |
|
|
675 |
|
| |
Transfer of property tax liability |
|
|
496 |
|
|
141 |
|
| |
Transfer of deferred rent |
|
|
— |
|
|
28 |
|
| |
Transfer of capitalized lease obligation |
|
|
32 |
|
|
— |
|
| |
Foreign currency translation adjustment |
|
|
(1,125 |
) |
|
8 |
|
| |
Cash payments |
|
|
(7,928 |
) |
|
(1,016 |
) |
| |
|
|
|
|
|
|
Ending balance |
|
$ |
69,393 |
|
$ |
6,530 |
|
| |
|
|
|
|
|
During the twenty-six weeks ended September 29, 2011 and September 30, 2010, the Company recognized $4,066,000 and $675,000, respectively, of theatre and other closure expense primarily related to accretion on previously closed properties with remaining lease obligations.
Theatre and other closure reserves for leases that have not been terminated are recorded at the present value of the future contractual commitments for the base rents, taxes and maintenance. |