NOTE 17—CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10, Financial statements of guarantors and issuers of guaranteed securities registered or being registered. Each of the subsidiary guarantors are 100% owned by AMCE. The subsidiary guarantees of AMCE's Notes due 2022 and the Notes due 2025 are full and unconditional, joint and several and subject to customary release provisions. The Company and its subsidiary guarantors' investments in its consolidated subsidiaries are presented under the equity method of accounting.

Twelve months ended December 31, 2015:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
Admissions	$	—		$	1,887,584		$	4,453		$	—		$	1,892,037
Food and beverage		—			908,153			1,933			—			910,086
Other theatre		—			144,275			502			—			144,777

Total revenues		—			2,940,012			6,888			—			2,946,900

Operating costs and expenses
Film exhibition costs		—			1,019,327			2,130			—			1,021,457
Food and beverage costs		—			128,144			425			—			128,569
Operating expense		75			791,917			3,730			—			795,722
Rent		—			465,830			1,992			—			467,822
General and administrative:
Merger, acquisition and transaction costs		—			3,398			—			—			3,398
Other		—			58,174			38			—			58,212
Depreciation and amortization		—			232,896			65			—			232,961
Impairment of long-lived assets		—			1,702			—			—			1,702

Operating costs and expenses		75			2,701,388			8,380			—			2,709,843

Operating income (loss)		(75	)		238,624			(1,492	)		—			237,057
Other expense (income)
Equity in net (earnings) loss of subsidiaries		(93,375	)		994			—			92,381			—
Other expense		—			10,684			—			—			10,684
Interest expense:
Corporate borrowings		97,163			129,517			—			(129,823	)		96,857
Capital and financing lease obligations		—			9,231			—			—			9,231
Equity in earnings of non-consolidated entities		—			(37,131	)		—			—			(37,131	)
Investment income		(107,719	)		(27,721	)		(498	)		129,823			(6,115	)

Total other expense (income)		(103,931	)		85,574			(498	)		92,381			73,526

Earnings (loss) before income taxes		103,856			153,050			(994	)		(92,381	)		163,531
Income tax provision		—			59,675			—			—			59,675

Net earnings (loss)	$	103,856		$	93,375		$	(994	)	$	(92,381	)	$	103,856

Twelve months ended December 31, 2014:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
Admissions	$	—		$	1,760,781		$	4,607		$	—		$	1,765,388
Food and beverage		—			795,789			1,946			—			797,735
Other theatre		—			131,931			336			—			132,267

Total revenues		—			2,688,501			6,889			—			2,695,390

Operating costs and expenses
Film exhibition costs		—			932,108			2,138			—			934,246
Food and beverage costs		—			111,532			459			—			111,991
Operating expense		96			729,282			3,960			—			733,338
Rent		—			453,106			2,133			—			455,239
General and administrative:
Merger, acquisition and transaction costs		—			1,161			—			—			1,161
Other		—			64,831			42			—			64,873
Depreciation and amortization		—			216,258			63			—			216,321
Impairment of long-lived assets		—			3,149			—			—			3,149

Operating costs and expenses		96			2,511,427			8,795			—			2,520,318

Operating income (loss)		(96	)		177,074			(1,906	)		—			175,072
Other expense (income)
Equity in net (earnings) loss of subsidiaries		(51,401	)		1,905			—			49,496			—
Other income		—			(8,344	)		—			—			(8,344	)
Interest expense:
Corporate borrowings		110,861			149,759			—			(149,548	)		111,072
Capital and financing lease obligations		—			9,867			—			—			9,867
Equity in earnings of non-consolidated entities		—			(26,615	)		—			—			(26,615	)
Investment expense (income)		(123,636	)		(34,056	)		(1	)		149,548			(8,145	)

Total other expense (income)		(64,176	)		92,516			(1	)		49,496			77,835

Earnings (loss) from continuing operations before income taxes		64,080			84,558			(1,905	)		(49,496	)		97,237
Income tax provision		—			33,470			—			—			33,470

Earnings (loss) from continuing operations		64,080			51,088			(1,905	)		(49,496	)		63,767
Gain from discontinued operations, net of income taxes		—			313			—			—			313

Net earnings (loss)	$	64,080		$	51,401		$	(1,905	)	$	(49,496	)	$	64,080

Twelve months ended December 31, 2013:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
Admissions	$	—		$	1,842,977		$	4,350		$	—		$	1,847,327
Food and beverage		—			785,041			1,871			—			786,912
Other theatre		—			114,922			267			—			115,189

Total revenues		—			2,742,940			6,488			—			2,749,428

Operating costs and expenses
Film exhibition costs		—			974,917			1,995			—			976,912
Food and beverage costs		—			106,926			399			—			107,325
Operating expense		(102	)		722,984			3,759			—			726,641
Rent		—			449,833			1,995			—			451,828
General and administrative:
Merger, acquisition and transaction costs		—			2,883			—			—			2,883
Other		—			97,259			29			—			97,288
Depreciation and amortization		—			197,486			51			—			197,537

Operating costs and expenses		(102	)		2,552,288			8,228			—			2,560,414

Operating income (loss)		102			190,652			(1,740	)		—			189,014
Other expense (income)
Equity in net (earnings) loss of subsidiaries		(349,185	)		1,141			—			348,044			—
Other income		—			(1,415	)		—			—			(1,415	)
Interest expense:
Corporate borrowings		130,363			173,633			—			(174,033	)		129,963
Capital and financing lease obligations		—			10,264			—			—			10,264
Equity in earnings of non-consolidated entities		2			(47,424	)		(13	)		—			(47,435	)
Investment income		(145,478	)		(30,373	)		(266	)		174,033			(2,084	)

Total other expense (income)		(364,298	)		105,826			(279	)		348,044			89,293

Earnings (loss) from continuing operations before income taxes		364,400			84,826			(1,461	)		(348,044	)		99,721
Income tax benefit		—			(263,383	)		—			—			(263,383	)

Earnings (loss) from continuing operations		364,400			348,209			(1,461	)		(348,044	)		363,104
Gain from discontinued operations, net of income taxes		—			976			320			—			1,296

Net earnings (loss)	$	364,400		$	349,185		$	(1,141	)	$	(348,044	)	$	364,400

Twelve months ended December 31, 2015:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Net earnings (loss)	$	103,856		$	93,375		$	(994	)	$	(92,381	)	$	103,856
Equity in other comprehensive income (loss) of subsidiaries		(10,040	)		552			—			9,488			—
Unrealized foreign currency translation adjustment, net of tax		—			820			552			—			1,372
Pension and other benefit adjustments:
Net gain arising during the period, net of tax		—			166			—			—			166
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		—			(1,679	)		—			—			(1,679	)
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		—			(196	)		—			—			(196	)
Marketable securities:
Unrealized net holding loss arising during the period, net of tax		—			(1,056	)		—			—			(1,056	)
Realized net gain reclassified into investment expense (income), net of tax		—			(156	)		—			—			(156	)
Equity method investees' cash flow hedge:
Unrealized net holding loss arising during the period, net of tax		—			(693	)		—			—			(693	)
Realized net loss reclassified into equity in earnings of non-consolidated entities, net of tax		—			457			—			—			457

Other comprehensive income (loss)		(10,040	)		(10,040	)		552			9,488			(10,040	)

Total comprehensive income (loss)	$	93,816		$	83,335		$	(442	)	$	(82,893	)	$	93,816

Twelve months ended December 31, 2014:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Net earnings (loss)	$	64,080		$	51,401		$	(1,905	)	$	(49,496	)	$	64,080
Equity in other comprehensive income (loss) of subsidiaries		(11,360	)		732			—			10,628			—
Unrealized foreign currency translation adjustment, net of tax		—			246			732			—			978
Pension and other benefit adjustments:
Net loss arising during the period, net of tax		—			(13,543	)		—			—			(13,543	)
Amortization of net gain reclassified into general and administrative: other, net of tax		—			(844	)		—			—			(844	)
Amortization of prior service credit reclassified into general and administrative: other, net of tax		—			(1,016	)		—			—			(1,016	)
Marketable securities:
Unrealized net holding gain arising during the period, net of tax		—			2,627			—			—			2,627
Realized net gain reclassified into investment expense (income), net of tax		—			(31	)		—			—			(31	)
Equity method investees' cash flow hedge:
Unrealized net holding loss arising during the period, net of tax		—			(59	)		—			—			(59	)
Realized net loss reclassified into equity in earnings of non-consolidated entities, net of tax		—			528			—			—			528

Other comprehensive income (loss)		(11,360	)		(11,360	)		732			10,628			(11,360	)

Total comprehensive income (loss)	$	52,720		$	40,041		$	(1,173	)	$	(38,868	)	$	52,720

Twelve months ended December 31, 2013:

(In thousands)	AMCE		Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Net earnings (loss)	$	364,400	$	349,185		$	(1,141	)	$	(348,044	)	$	364,400
Equity in other comprehensive income (loss) of subsidiaries		14,760		(559	)		—			(14,201	)		—
Unrealized foreign currency translation adjustment, net of tax		—		738			(559	)		—			179
Pension and other benefit adjustments:
Net gain arising during the period, net of tax		—		4,510			—			—			4,510
Prior service credit arising during the period, net of tax		—		9,271			—			—			9,271
Amortization of net gain reclassified into general and administrative: other, net of tax		—		(78	)		—			—			(78	)
Marketable securities:
Unrealized net holding loss arising during the period, net of tax		—		(1,622	)		—			—			(1,622	)
Realized net loss reclassified into investment expense (income), net of tax		—		925			—			—			925
Equity method investees' cash flow hedge:
Unrealized net holding gain arising during the period, net of tax		—		2,085			—			—			2,085
Realized net gain reclassified into equity in earnings of non-consolidated entities, net of tax		—		(510	)		—			—			(510	)

Other comprehensive income (loss)		14,760		14,760			(559	)		(14,201	)		14,760

Total comprehensive income (loss)	$	379,160	$	363,945		$	(1,700	)	$	(362,245	)	$	379,160

As of December 31, 2015:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Assets
Current assets:
Cash and equivalents	$	—		$	167,023		$	42,283		$	—		$	209,306
Receivables, net		(21	)		105,477			53			—			105,509
Other current assets		—			96,302			1,306			—			97,608

Total current assets		(21	)		368,802			43,642			—			412,423
Investment in equity of subsidiaries		1,638,903			31,609			—			(1,670,512	)		—
Property, net		—			1,401,686			242			—			1,401,928
Intangible assets, net		—			237,376			—			—			237,376
Intercompany advances		1,805,829			(1,811,112	)		5,283			—			—
Goodwill		—			2,408,834			—			—			2,408,834
Deferred income tax asset		—			125,903			—			—			125,903
Other long-term assets		31,454			492,057			14			—			523,525

Total assets	$	3,476,165		$	3,255,155		$	49,181		$	(1,670,512	)	$	5,109,989


Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable	$	—		$	312,591		$	434		$	—		$	313,025
Accrued expenses and other liabilities		7,188			151,619			(143	)		—			158,664
Deferred revenues and income		—			221,679			—			—			221,679
Current maturities of corporate borrowings and capital and financing lease obligations		8,806			9,980			—			—			18,786

Total current liabilities		15,994			695,869			291			—			712,154
Corporate borrowings		1,920,200			4,166			—			—			1,924,366
Capital and financing lease obligations		—			93,273			—			—			93,273
Exhibitor services agreement		—			377,599			—			—			377,599
Other long-term liabilities		—			445,345			17,281			—			462,626

Total liabilities		1,936,194			1,616,252			17,572			—			3,570,018
Stockholder's equity		1,539,971			1,638,903			31,609			(1,670,512	)		1,539,971

Total liabilities and stockholder's equity	$	3,476,165		$	3,255,155		$	49,181		$	(1,670,512	)	$	5,109,989

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
Other current assets		—			82,981			1,362			—			84,343

Total current assets		382			356,322			43,046			—			399,750
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		—			181,755			—			—			181,755
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

Twelve months ended December 31, 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	$	15,124		$	449,121		$	3,419		$	—	$	467,664

Cash flows from investing activities:
Capital expenditures		—			(333,395	)		(28	)		—		(333,423	)
Acquisition of Starplex Cinemas, net of cash acquired		—			(172,853	)		—			—		(172,853	)
Proceeds from the disposition of long-term assets		—			604			—			—		604
Investments in non-consolidated entities		—			(1,915	)		—			—		(1,915	)
Other, net		—			(1,849	)		—			—		(1,849	)

Net cash used in investing activities		—			(509,408	)		(28	)		—		(509,436	)

Cash flows from financing activities:
Proceeds from issuance of Senior Subordinated Notes due 2025		600,000			—			—			—		600,000
Proceeds from extension and modification of Term Loan 2022		124,375			—			—			—		124,375
Repayment of Senior Subordinated Notes due 2020		(645,701	)		—			—			—		(645,701	)
Borrowings under Revolving Credit Facility		75,000			—			—			—		75,000
Principal payments under Term Loan		(5,813	)		—			—			—		(5,813	)
Principal payments under capital and financing leases		—			(7,840	)		—			—		(7,840	)
Principal payments under promissory note		—			(1,389	)		—			—		(1,389	)
Premium amount of coupon payment under Senior Subordinated Notes due 2020		(3,486	)		—			—			—		(3,486	)
Increase in deferred financing costs		(21,252	)		—			—			—		(21,252	)
Cash used to pay dividends Holdings		(78,608	)		—			—			—		(78,608	)
Change in intercompany advances		(60,042	)		62,742			(2,700	)		—		—

Net cash provided by (used in) financing activities		(15,527	)		53,513			(2,700	)		—		35,286

Effect of exchange rate changes on cash and equivalents		—			(320	)		(43	)		—		(363	)

Net decrease in cash and equivalents		(403	)		(7,094	)		648			—		(6,849	)
Cash and equivalents at beginning of period		403			174,117			41,635			—		216,155

Cash and equivalents at end of period	$	—		$	167,023		$	42,283		$	—	$	209,306

Twelve months ended December 31, 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	$	13,212		$	280,990		$	3,100		$	—	$	297,302

Cash flows from investing activities:
Capital expenditures		—			(270,677	)		(57	)		—		(270,734	)
Proceeds from the disposition of long-term assets		—			238			—			—		238
Investments in non-consolidated entities		—			(1,522	)		—			—		(1,522	)
Other, net		—			327			—			—		327

Net cash used in investing activities		—			(271,634	)		(57	)		—		(271,691	)

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	)
Principle payments under Term Loan		(7,750	)		—			—			—		(7,750	)
Principal payments under capital and financing lease obligations		—			(6,941	)		—			—		(6,941	)
Principal payments under promissory note		—			(1,389	)		—			—		(1,389	)
Principal amount of coupon payment under Senior Subordinated Notes due 2020		(6,227	)		—			—			—		(6,227	)
Increase in deferred financing costs		(7,952	)		—			—			—		(7,952	)
Cash used to pay dividends to Holdings		(58,504	)										(58,504	)
Change in intercompany advances		331,867			(328,651	)		(3,216	)		—		—

Net cash used in financing activities		(13,294	)		(337,262	)		(3,216	)		—		(353,772	)

Effect of exchange rate changes on cash and equivalents		—			34			(29	)		—		5

Net decrease in cash and equivalents		(82	)		(327,872	)		(202	)		—		(328,156	)
Cash and equivalents at beginning of period		485			501,989			41,837			—		544,311

Cash and equivalents at end of period	$	403		$	174,117		$	41,635		$	—	$	216,155

Twelve months ended December 31, 2013:

(In thousands)	AMCE			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments		Consolidated AMC Entertainment Inc.
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	3,772		$	354,520		$	(950	)	$	—	$	357,342

Cash flows from investing activities:
Capital expenditures		—			(260,633	)		(190	)		—		(260,823	)
Acquisition of Rave theatres		—			(1,128	)		—			—		(1,128	)
Proceeds from the disposition of long-term assets		—			3,880			—			—		3,880
Investments in non-consolidated entities		—			(3,280	)		15			—		(3,265	)
Other, net		—			(7,448	)		—			—		(7,448	)

Net cash used in investing activities		—			(268,609	)		(175	)		—		(268,784	)

Cash flows from financing activities:
Proceeds from issuance of Term Loan due 2020		773,063			—			—			—		773,063
Capital contribution from Holdings		355,580			—			—			—		355,580
Repayment of Term Loan due 2016		(464,088	)		—			—			—		(464,088	)
Repayment of Term Loan due 2018		(296,250	)		—			—			—		(296,250	)
Principle payments under Term Loan		(7,813	)		—			—			—		(7,813	)
Principal payments under capital and financing lease obligations		—			(6,446	)		—			—		(6,446	)
Increase in deferred financing costs		(9,126	)		—			—			—		(9,126	)
Payment of construction payables		—			(19,404	)		—			—		(19,404	)
Cash used to pay dividends to Holdings		(588	)		—			—			—		(588	)
Change in intercompany advances		(354,373	)		352,861			1,512			—		—

Net cash provided by (used in) financing activities		(3,595	)		327,011			1,512			—		324,928

Effect of exchange rate changes on cash and equivalents		—			(101	)		(2	)		—		(103	)

Net increase in cash and equivalents		177			412,821			385			—		413,383
Cash and equivalents at beginning of period		308			89,168			41,452			—		130,928

Cash and equivalents at end of period	$	485		$	501,989		$	41,837		$	—	$	544,311