Investments in non-consolidated affiliates and certain other investments accounted for following the equity method generally include all entities in which the Company or its subsidiaries have significant influence, but not more than 50% voting control. Investments in non-consolidated affiliates as of December 29, 2011, include a 15.63% interest in National CineMedia, LLC ("NCM"), a 50% interest in two U.S. theatres and one IMAX screen, a 26.22% equity interest in Movietickets.com ("MTC"), a 50% interest in Midland Empire Partners, LLC ("MEP"), a 29% interest in Digital Cinema Implementation Partners, LLC ("DCIP"), and a 50% interest in Open Road Releasing, LLC, operator of Open Road Films, LLC ("ORF"). Indebtedness held by equity method investees is non-recourse to the Company.

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). The investment in RealD Inc. common stock had been in an unrealized loss position for approximately six months at December 29, 2011. The Company reviewed the unrealized loss for a possible other-than-temporary impairment and determined that the loss as of December 29, 2011 was other-than-temporary. On December 29, 2011, the Company recognized an impairment loss of $17,751,000 within investment expense (income), related to unrealized losses previously recorded in accumulated other comprehensive loss, as the Company has determined the decline in fair value below historical cost to be other-than-temporary at December 29, 2011. Consideration was given to the financial condition and near-term prospects of the issuer, the length of time and extent to which the fair value has been less than cost and the Company's intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value.

Condensed financial information of our non-consolidated equity method investments is shown below. Amounts are presented under U.S. GAAP for the periods of ownership by the Company.

	Thirteen Weeks Ended				Thirty-nine Weeks Ended

(In thousands)	December 29, 2011		December 30, 2010		December 29, 2011		December 30, 2010
Revenues	$	161,913	$	147,173	$	498,279	$	410,528
Operating costs and expenses		123,806		86,381		400,713		300,301

Total net earnings from non-consolidated entities	$	38,107	$	60,792	$	97,566	$	110,227

The Company's recorded equity in earnings	$	6,169	$	13,491	$	1,864	$	17,057

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

	Thirteen Weeks Ended						Thirty-nine Weeks Ended

(In thousands)	December 29, 2011			December 30, 2010			December 29, 2011			December 30, 2010
National CineMedia, LLC	$	8,888		$	10,711		$	19,402		$	23,145
Digital Cinema Implementation Partners, LLC		2,524			3,225			(412	)		(5,356	)
Open Road Releasing, LLC		(2,269	)		(250	)		(14,466	)		(250	)
Other		(2,974	)		(195	)		(2,660	)		(482	)

The Company's recorded equity in earnings	$	6,169		$	13,491		$	1,864		$	17,057

DCIP Transactions. As of December 29, 2011 and March 31, 2011, the Company had recorded $3,638,000 and $3,376,000 respectively, of amounts due from DCIP related to equipment purchases made on behalf of DCIP for the installation of digital projection systems. After the projectors are installed and the Company is reimbursed for its installation costs, the Company will make capital contributions to DCIP for projector and installation costs in excess of the cap ($68,000 per system for digital conversions). The Company pays equipment rent monthly and records the equipment rental expense on a straight-line basis over 12 years, including scheduled escalations of rent to commence after six and one-half years from the inception of the agreement. The difference between the cash rent and straight-line rent is recorded to deferred rent, a long-term liability account. As of December 29, 2011 and March 31, 2011, the Company had recorded $4,034,000 and $1,471,000 of deferred rent liability, respectively. The Company recorded digital equipment rental expense of $1,841,000 and $843,000 during the thirteen weeks ended December 29, 2011 and December 30, 2010, respectively and $5,081,000 and $1,785,000 during the thirty-nine weeks ended December 29, 2011 and December 30, 2010, respectively.

Open Road Films Transactions. The Company incurred approximately $2 million in film exhibition costs during the thirty-nine weeks ended December 29, 2011 for Killer Elite, the first title distributed by ORF.

NCM Transactions. As of December 29, 2011, the Company owns 17,323,782 units, or a 15.63% interest, in NCM. As a founding member, the Company has the ability to exercise significant influence over the governance of NCM, and, accordingly accounts for its investment following the equity method. The estimated fair market value of the units in NCM was approximately $208,405,000, based on the price per share of NCM, Inc. on December 29, 2011 of $12.03 per share.

As of December 29, 2011 and March 31, 2011, the Company had recorded $1,628,000 and $1,708,000 respectively, of amounts due from NCM related to on-screen advertising revenue and theatre rent. As of December 29, 2011 and March 31, 2011, the Company had recorded $1,471,000 and $1,355,000 respectively, of amounts due to NCM related to the Exhibitor Services Agreement. The Company recorded revenues for advertising from NCM of $5,577,000 and $5,658,000 during the thirteen weeks ended December 29, 2011 and December 30, 2010, respectively and $17,930,000 and $17,068,000 during the thirty-nine weeks ended December 29, 2011 and December 30, 2010, respectively. The Company recorded NCM advertising expenses related to beverage advertising of $2,895,000 and $2,999,000 during the thirteen weeks ended December 29, 2011 and December 30, 2010, respectively and $10,093,000 and $9,685,000 during the thirty-nine weeks ended December 29, 2011 and December 30, 2010, respectively.

All of the Company's NCM membership units are redeemable for, at the option of NCM, Inc., cash or shares of common stock of NCM, Inc. on a share-for-share basis. On August 18, 2010, the Company sold 6,500,000 shares of common stock of NCM, Inc. in an underwritten public offering for $16.00 per share and reduced the Company's related investment in NCM by $36,709,000, the average carrying amount of all shares owned. Net proceeds received on this sale were $99,840,000 after deducting related underwriting fees and professional and consulting costs of $4,160,000, resulting in a gain on sale of $63,131,000. In addition, on September 8, 2010, the Company sold 155,193 shares of NCM, Inc. to the underwriters to cover over-allotments for $16.00 per share and reduced the Company's related investment in NCM by $867,000, the average carrying amount of all shares owned. Net proceeds received on this sale were $2,384,000 after deducting related underwriting fees and professional and consulting costs of $99,000, resulting in a gain on sale of $1,517,000.

The Company recorded the following changes in the carrying amount of its investment in NCM and equity in earnings of NCM during the thirty-nine weeks ended December 29, 2011:

(In thousands)	Investment in NCM(1)			Deferred Revenue(2)			Cash Received		Equity in (Earnings)			Advertising (Revenue)

Beginning balance March 31, 2011	$	74,551		$	(333,792	)
Receipt of excess cash distributions		(4,728	)		—		$	18,544	$	(13,816	)	$	—
Receipt under Tax Receivable Agreement		(35	)		—			494		(459	)		—
Amortization of deferred revenue		—			3,773			—		—			(3,773	)
Equity in earnings(3)		5,127			—			—		(5,127	)		—

For the period ended or balance as of December 29, 2011	$	74,915		$	(330,019	)	$	19,038	$	(19,402	)	$	(3,773	)

On February 13, 2007, NCM, Inc., the sole manager of NCM, completed its Initial Public Offering ("IPO") and used the net proceeds from the IPO to purchase a 44.8% interest in NCM, paying NCM $746,100,000 and paying the Founding Members $78,500,000 for a portion of the NCM units owned by them. NCM then paid $686,300,000 of the funds received from NCM, Inc. to the Founding Members as consideration for their agreement to modify the then-existing ESA. Also in connection with the IPO, NCM used $59,800,000 of the proceeds it received from NCM, Inc. and $709,700,000 of net proceeds from its new senior secured credit facility entered into concurrently with the completion of the IPO to redeem $769,500,000 in NCM preferred units held by the Founding Members. The redemption distribution to the Founding Members described above related to the IPO resulted in large Members' Deficit amounts for the Founding Members.

The Company received approximately $259,300,000 for the redemption of all of its preferred units in NCM and approximately $26,500,000 from selling common units in NCM to NCM, Inc. In addition, the Company received $231,300,000 as consideration for modifying the ESA.

Following the NCM IPO, the Company will not recognize undistributed equity in the earnings on the original NCM membership units (Tranche 1 Investment) until NCM's future net earnings, less distributions received, surpass the amount of the excess distribution. The Company will recognize equity in earnings only to the extent it receives cash distributions from NCM. The Company considers the excess distribution described above as an advance on NCM's future earnings and, accordingly, future earnings of NCM should not be recognized through the application of equity method accounting until such time as the Company's share of NCM's future earnings, net of distributions received, exceeds the excess distribution. The Company believes that the accounting model provided by ASC 323-10-35-22 for recognition of equity investee losses in excess of an investor's basis is analogous to the accounting for equity income subsequent to recognizing an excess distribution.

The Company has received 7,983,723 additional units in NCM subsequent to the IPO as a result of Common Unit Adjustments received from March 27, 2008 through June 14, 2010 (Tranche 2 Investments). The Company follows the guidance in ASC 323-10-35-29 (formerly EITF 02-18, Accounting for Subsequent Investments in an Investee after Suspension of Equity Loss Recognition) by analogy, which also refers to AICPA Technical Practice Aid 2220.14. Both sets of literature indicate that if a subsequent investment is made in an equity method investee that has experienced significant losses, the investor must determine if the subsequent investment constitutes funding of prior losses. The Company concluded that the construction or acquisition of new theatres that has led to the Common Unit adjustments included in its Tranche 2 Investments equates to making additional investments in NCM. The Company has evaluated the receipt of the additional common units in NCM and the assets exchanged for these additional units and has determined that the right to use its incremental new screens would not be considered funding of prior losses. This determination was formed by considering that (i) NCM does not receive any additional funds from the Tranche 2 Investments, (ii) both NCM and AMC record their respective increases to Members' Equity and Investment at the same amount (fair value of the units issued), (iii) the additional investments result in additional ownership in NCM and (iv) the investments in additional common units are not subordinate to the other equity of NCM. As such, the additional common units received would be accounted for as a Tranche 2 Investment separate from the Company's initial investment following the equity method. The Company's Tranche 2 Investments correspond with the NCM Members' equity amounts in its capital account.