v3.3.1.900
INVESTMENTS (Tables)
12 Months Ended
Dec. 31, 2015
Investments  
Schedule of condensed financial information of the reporting entity's non-consolidated equity method investments

 

 

 

December 31, 2015

 

(In thousands)

 

NCM

 

DCIP

 

Open Road

 

AC JV

 

Other

 

Total

 

Current assets

 

$

159,500

 

$

48,833

 

$

48,954

 

$

9,967

 

$

9,083

 

$

276,337

 

Noncurrent assets

 

 

623,100

 

 

955,924

 

 

52,359

 

 

21,502

 

 

29,470

 

 

1,682,355

 

Total assets

 

 

782,600

 

 

1,004,757

 

 

101,313

 

 

31,469

 

 

38,553

 

 

1,958,692

 

Current liabilities

 

 

113,100

 

 

32,533

 

 

65,076

 

 

3,802

 

 

4,867

 

 

219,378

 

Noncurrent liabilities

 

 

936,000

 

 

642,659

 

 

95,916

 

 

 

 

 

 

1,674,575

 

Total liabilities

 

 

1,049,100

 

 

675,192

 

 

160,992

 

 

3,802

 

 

4,867

 

 

1,893,953

 

Stockholders' equity (deficit)

 

 

(266,500

)

 

329,565

 

 

(59,679

)

 

27,667

 

 

33,686

 

 

64,739

 

Liabilities and stockholders' equity (deficit)

 

 

782,600

 

 

1,004,757

 

 

101,313

 

 

31,469

 

 

38,553

 

 

1,958,692

 

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The Company's recorded investment(1)

 

$

327,471

 

$

85,710

 

$

(10,000

)

$

5,605

 

$

10,886

 

$

419,672

 

​  

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December 31, 2014

 

(In thousands)

 

NCM

 

DCIP

 

Open Road

 

AC JV

 

Other

 

Total

 

Current assets

 

$

134,900

 

$

53,229

 

$

44,498

 

$

10,993

 

$

11,649

 

$

255,269

 

Noncurrent assets

 

 

546,200

 

 

1,044,417

 

 

12,260

 

 

22,948

 

 

25,296

 

 

1,651,121

 

Total assets

 

 

681,100

 

 

1,097,646

 

 

56,758

 

 

33,941

 

 

36,945

 

 

1,906,390

 

Current liabilities

 

 

106,500

 

 

24,036

 

 

41,080

 

 

4,238

 

 

3,538

 

 

179,392

 

Noncurrent liabilities

 

 

892,000

 

 

821,282

 

 

45,582

 

 

 

 

 

 

1,758,864

 

Total liabilities

 

 

998,500

 

 

845,318

 

 

86,662

 

 

4,238

 

 

3,538

 

 

1,938,256

 

Stockholders' equity (deficit)

 

 

(317,400

)

 

252,328

 

 

(29,904

)

 

29,703

 

 

33,407

 

 

(31,866

)

Liabilities and stockholders' equity (deficit)

 

 

681,100

 

 

1,097,646

 

 

56,758

 

 

33,941

 

 

36,945

 

 

1,906,390

 

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The Company's recorded investment(1)

 

$

265,839

 

$

62,236

 

$

(9,570

)

$

6,255

 

$

7,680

 

$

332,440

 

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(1)          

Certain differences in the Company's recorded investments, and its proportional ownership share resulting from the acquisition of Holdings by Wanda on August 30, 2012, where the investments were recorded at fair value, are amortized to equity in (earnings) losses of non-consolidated entities over the estimated useful lives of the underlying assets and liabilities. Other non-amortizing differences are considered to represent goodwill and are evaluated for impairment annually.

 

 

 

12 Months Ended December 31, 2015

 

(In thousands)

 

NCM

 

DCIP

 

Open Road

 

AC JV

 

Other

 

Total

 

Revenues

 

$

446,500

 

$

172,256

 

$

119,227

 

$

53,371

 

$

30,637

 

$

821,991

 

Operating costs and expenses

 

 

359,000

 

 

93,001

 

 

149,002

 

 

50,600

 

 

27,634

 

 

679,237

 

​  

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​  

​  

​  

​  

​  

​  

​  

​  

​  

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Net earnings (loss)

 

$

87,500

 

$

79,255

 

$

(29,775

)

$

2,771

 

$

3,003

 

$

142,754

 

​  

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12 Months Ended December 31, 2014

 

(In thousands)

 

NCM

 

DCIP

 

Open Road

 

AC JV

 

Other

 

Total

 

Revenues

 

$

394,000

 

$

170,724

 

$

175,374

 

$

42,102

 

$

26,887

 

$

809,087

 

Operating costs and expenses

 

 

297,700

 

 

109,430

 

 

190,602

 

 

37,669

 

 

26,072

 

 

661,473

 

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​  

​  

​  

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Net earnings (loss)

 

$

96,300

 

$

61,294

 

$

(15,228

)

$

4,433

 

$

815

 

$

147,614

 

​  

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​  

​  

​  

​  

​  

​  

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12 Months Ended December 31, 2013

 

(In thousands)

 

NCM

 

DCIP

 

Open Road

 

AC JV

 

Other

 

Total

 

Revenues

 

$

462,800

 

$

182,659

 

$

140,350

 

$

 

$

18,517

 

$

804,326

 

Operating costs and expenses

 

 

299,900

 

 

133,700

 

 

130,628

 

 

 

 

18,546

 

 

582,774

 

​  

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Net earnings (loss)

 

$

162,900

 

$

48,959

 

$

9,722

 

$

 

$

(29

)

$

221,552

 

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Schedule of components of the Company's recorded equity in earnings (losses) of non-consolidated entities

(In thousands)

 

12 Months
Ended
December 31,
2015

 

12 Months
Ended
December 31,
2014

 

12 Months
Ended
December 31,
2013

 

National CineMedia, LLC

 

$

11,194

 

$

11,311

 

$

23,196

 

Digital Cinema Implementation Partners, LLC

 

 

24,522

 

 

20,929

 

 

18,660

 

Open Road Releasing, LLC

 

 

(430

)

 

(7,650

)

 

4,861

 

AC JV, LLC

 

 

950

 

 

1,470

 

 

 

Other

 

 

895

 

 

555

 

 

718

 

​  

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​  

​  

​  

​  

The Company's recorded equity in earnings

 

$

37,131

 

$

26,615

 

$

47,435

 

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Schedule of changes in the carrying amount of the entity's investment in NCM and equity in earnings of NCM

 

                                                                                                                                                                                    

(In thousands)

 

Investment
in NCM(1)

 

Exhibitor
Services
Agreement(2)

 

Other
Comprehensive
(Income)

 

Cash
Received

 

Equity in
(Earnings)
Losses

 

Advertising
(Revenue)

 

Ending balance at December 31, 2012

 

$

245,047

 

$

(318,154

)

$

(797

)

 

 

 

 

 

 

 

 

 

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Receipt of common units

 

 

26,315

 

 

(26,315

)

 

 

$

 

$

 

$

 

Receipt of excess cash distributions

 

 

(27,453

)

 

 

 

 

 

27,453

 

 

 

 

 

Amortization of ESA

 

 

 

 

14,556

 

 

 

 

 

 

 

 

(14,556

)

Unrealized gain from cash flow hedge

 

 

1,485

 

 

 

 

(1,485

)

 

 

 

 

 

 

Adjust carrying value of AC JV, LLC(3)

 

 

3,817

 

 

 

 

 

 

 

 

 

 

 

Change in interest gain(4)

 

 

5,012

 

 

 

 

 

 

 

 

(5,012

)

 

 

Equity in earnings(5)

 

 

21,149

 

 

 

 

 

 

 

 

(21,149

)

 

 

Equity in loss from amortization of basis difference(6)

 

 

(2,965

)

 

 

 

 

 

 

 

2,965

 

 

 

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​  

​  

Ending balance at December 31, 2013

 

$

272,407

 

$

(329,913

)

$

(2,282

)

$

27,453

 

$

(23,196

)

$

(14,556

)

​  

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Receipt of common units

 

 

2,137

 

 

(2,137

)

 

 

 

 

 

 

 

 

Receipt of excess cash distributions

 

 

(21,514

)

 

 

 

 

 

21,514

 

 

 

 

 

Amortization of ESA

 

 

 

 

15,235

 

 

 

 

 

 

 

 

(15,235

)

Unrealized gain from cash flow hedge

 

 

1,498

 

 

 

 

(1,498

)

 

 

 

 

 

 

Equity in earnings(5)

 

 

14,446

 

 

 

 

 

 

 

 

(14,446

)

 

 

Equity in loss from amortization of basis difference(6)

 

 

(3,135

)

 

 

 

 

 

 

 

3,135

 

 

 

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​  

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​  

Ending balance at December 31, 2014

 

$

265,839

 

$

(316,815

)

$

(3,780

)

$

21,514

 

$

(11,311

)

$

(15,235

)

​  

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Receipt of common units

 

 

76,101

 

 

(76,101

)

 

 

 

 

 

 

 

 

Exchange of common units

 

 

(3,156

)

 

 

 

 

 

 

 

 

 

 

Receipt of excess cash distributions

 

 

(22,741

)

 

 

 

 

 

22,741

 

 

 

 

 

Amortization of ESA

 

 

 

 

15,317

 

 

 

 

 

 

 

 

(15,317

)

Unrealized gain from cash flow hedge

 

 

234

 

 

 

 

(234

)

 

 

 

 

 

 

Equity in earnings(5)

 

 

14,435

 

 

 

 

 

 

 

 

(14,435

)

 

 

Equity in loss from amortization of basis difference(6)

 

 

(3,241

)

 

 

 

 

 

 

 

3,241

 

 

 

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​  

Ending balance at December 31, 2015

 

$

327,471

 

$

(377,599

)

$

(4,014

)

$

22,741

 

$

(11,194

)

$

(15,317

)

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(1)          

The following table represents AMC's investment in common membership units including units received under the Common Unit Adjustment Agreement dated as of February 13, 2007:

                                                                                                                                                                                    

 

 

Common
Membership Units

 

 

 

Tranche 1

 

Tranche 2(a)

 

Beginning balance at December 31, 2012

 

 

17,323,782

 

 

 

Additional units received in March 2013

 

 

 

 

1,728,988

 

Additional units received in March 2014

 

 

 

 

141,731

 

Additional units received in March 2015

 

 

 

 

469,163

 

Additional units received in December 2015

 

 

 

 

4,399,324

 

Units exchanged for NCM, Inc. shares in December 2015

 

 

 

 

(200,000

)

​  

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​  

​  

Ending balance at December 31, 2015

 

 

17,323,782

 

 

6,539,206

 

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(a)          

The additional units received in March 2013, March 2014, March 2015, and December 2015 were measured at fair value (Level 1) using NCM, Inc.'s stock price of $15.22, $15.08, $14.52, and $15.75 respectively.

 

 

 

(2)          

Represents the unamortized portion of the 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)          

On December 26, 2013, NCM spun-off its Fathom Events business to a newly formed limited liability company, AC JV, LLC which is owned 32% by each founding member and 4% by NCM. In consideration for the sale, each of the three founding members issued promissory notes of approximately $8,333,000 to NCM. The Company's share of the gain recorded by NCM, as a result of the spin-off, has been excluded from equity in earnings and has been applied as a reduction in the carrying value of AC JV, LLC investment.

(4)          

Non-cash gains were recorded in 2013 to adjust the Company's investment balance due to NCM's issuance of 8,688,078 common membership units to other founding members, at a price per share in excess of the Company's average carrying amount per share.

(5)          

Represents equity in earnings on both Tranche 1 and Tranche 2 Investments.

(6)          

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) losses in non-consolidated entities over the respective lives of the assets and liabilities.

 

NCM  
Investments  
Schedule of transactions

 

(In thousands)

 

December 31,
2015

 

December 31,
2014

 

Due from NCM for on-screen advertising revenue

 

$

2,406 

 

$

2,072 

 

Due to NCM for Exhibitor Services Agreement

 

 

1,226 

 

 

1,784 

 

Promissory note payable to NCM

 

 

5,555 

 

 

6,944 

 

 

(In thousands)

 

12 Months
Ended
December 31,
2015

 

12 Months
Ended
December 31,
2014

 

12 Months
Ended
December 31,
2013

 

Other theatre revenues:

 

 

 

 

 

 

 

 

 

 

Net NCM screen advertising revenues

 

$

35,893 

 

$

34,523 

 

$

33,790 

 

Operating expense:

 

 

 

 

 

 

 

 

 

 

NCM beverage advertising expense

 

 

8,256 

 

 

12,226 

 

 

13,809 

 

 

DCIP  
Investments  
Schedule of transactions

 

(In thousands)

 

December 31,
2015

 

December 31,
2014

 

Due from DCIP for equipment and warranty purchases

 

$

1,460 

 

$

1,048 

 

Deferred rent liability for digital projectors

 

 

8,725 

 

 

9,031 

 

 

(In thousands)

 

12 Months
Ended
December 31,
2015

 

12 Months
Ended
December 31,
2014

 

12 Months
Ended
December 31,
2013

 

Operating expense:

 

 

 

 

 

 

 

 

 

 

Digital equipment rental expense

 

$

4,963 

 

$

6,639 

 

$

11,077 

 

Warranty reimbursements from DCIP

 

 

5,241 

 

 

3,651 

 

 

2,166 

 

 

Open Road Releasing, LLC, operator of ORF  
Investments  
Schedule of transactions

 

(In thousands)

 

December 31,
2015

 

December 31,
2014

 

Due from Open Road Films

 

$

2,472 

 

$

2,560 

 

Film rent payable to Open Road Films

 

 

1,061 

 

 

709 

 

 

(In thousands)

 

12 Months
Ended
December 31,
2015

 

12 Months
Ended
December 31,
2014

 

12 Months
Ended
December 31,
2013

 

Film exhibition costs:

 

 

 

 

 

 

 

 

 

 

Gross exhibition cost on Open Road Films

 

$

6,380 

 

$

13,300 

 

$

12,700 

 

 

ACJV LLC  
Investments  
Schedule of transactions

 

(In thousands)

 

December 31,
2015

 

December 31,
2014

 

Due to AC JV for Fathom Events programming

 

$

445 

 

$

333 

 

 

(In thousands)

 

12 Months
Ended
December 31,
2015

 

12 Months
Ended
December 31,
2014

 

12 Months
Ended
December 31,
2013

 

Film exhibition costs:

 

 

 

 

 

 

 

 

 

 

Gross exhibition cost on Fathom Events programming              

 

$

8,511 

 

$

6,898 

 

$