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SEC Filings

10-K
CINEMARK HOLDINGS, INC. filed this Form 10-K on 02/27/2015
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Table of Contents

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in ASU 2014-15 are effective for annual reporting periods ending after December 15, 2016, and interim periods within those years. Early application is permitted. The Company does not expect the adoption of ASU 2014-15 to have a significant impact on its consolidated financial statements.

In January 2015, the FASB issued Accounting Standards Update 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, (“ASU 2015-01”). ASU 2015-01 eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 is effective for fiscal years beginning after December 15, 2015. The adoption of ASU 2015-01 is not expected to have a significant impact on the Company’s consolidated financial statements.

 

3. EARNINGS PER SHARE

The Company considers its unvested share based payment awards, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings per share pursuant to the two-class method. Basic earnings per share for the two classes of stock (common stock and unvested restricted stock) is calculated by dividing net income by the weighted average number of shares of common stock and unvested restricted stock outstanding during the reporting period. Diluted earnings per share is calculated using the weighted average number of shares of common stock and unvested restricted stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two class method and the treasury stock method.

The following table presents computations of basic and diluted earnings per share under the two class method:

 

     Year ended December 31,  
     2012     2013     2014  

Numerator:

      

Net income attributable to Cinemark Holdings, Inc.

   $ 168,949      $ 148,470      $ 192,610   

Earnings allocated to participating share-based awards (1)

     (2,061     (1,530     (1,345
  

 

 

   

 

 

   

 

 

 

Net income attributable to common stockholders

   $ 166,888      $ 146,940      $ 191,265   
  

 

 

   

 

 

   

 

 

 

Denominator (shares in thousands):

      

Basic weighted average common stock outstanding

     113,216        113,896        114,653   

Common equivalent shares for stock options

     36        9        —     

Common equivalent shares for restricted stock units

     572        491        313   
  

 

 

   

 

 

   

 

 

 

Diluted

     113,824        114,396        114,966   
  

 

 

   

 

 

   

 

 

 

Basic earnings per share attributable to common stockholders

   $ 1.47      $ 1.28      $ 1.66   
  

 

 

   

 

 

   

 

 

 

Diluted earnings per share attributable to common stockholders

   $ 1.47      $ 1.28      $ 1.66   
  

 

 

   

 

 

   

 

 

 

 

(1) 

For the years ended December 31, 2012, 2013 and 2014, a weighted average of approximately 1,406 shares, 1,198 shares and 810 shares, of unvested restricted stock, respectively, are considered participating securities.

 

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