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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

 

Below is a summary of activity for each of the investments for the years ended December 31, 2012, 2013 and 2014:

 

     DCIP     RealD     AC JV,
LLC
    DCDC     Other     Total  

Balance at January 1, 2012

   $ 12,798      $ 9,709      $ —        $ 46      $ 1,497      $ 24,050   

Cash contributions

     1,325        —          —          155        —          1,480   

Equity in income (loss)

     8,889        —          —          (196     —          8,693   

Unrealized holding gain

     —          3,998        —          —          —          3,998   

Other

     —          —          —          —          (20     (20
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2012

   $ 23,012      $ 13,707      $ —        $ 5      $ 1,477      $ 38,201   

Cash contributions

     3,232        —          268        2,721        —          6,221   

Issuance of promissory note to NCM

     —          —          8,333        —          —          8,333   

Equity in income (loss)

     11,241        —          —          (137     —          11,104   

Equity in other comprehensive income

     548        —          —          —          —          548   

Adjustment for gain recognized by NCM

     —          —          (2,175     —          —          (2,175

Unrealized holding loss

     —          (3,264     —          —          —          (3,264

Other

     —          —          —          —          689        689   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2013

   $ 38,033      $ 10,443      $ 6,426      $ 2,589      $ 2,166      $ 59,657   

Cash contributions

     2,188        —          —          —          —          2,188   

Equity in income (loss)

     15,279        —          1,473        (151     —          16,601   

Equity in other comprehensive loss

     (219     —          —          —          —          (219

Unrealized holding gain

     —          3,986        —          —          —          3,986   

Cash distributions received

     (4,004     —          —          —          —          (4,004

Other

     —          —          —          —          (551     (551
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2014

   $ 51,277     $ 14,429     $ 7,899      $ 2,438     $ 1,615     $ 77,658  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Digital Cinema Implementation Partners LLC

On February 12, 2007, the Company, AMC and Regal entered into a joint venture known as Digital Cinema Implementation Partners LLC to facilitate the implementation of digital cinema in the Company’s theatres and to establish agreements with major motion picture studios for the financing of digital cinema. On March 10, 2010, the Company signed a master equipment lease agreement and other related agreements (collectively the “Agreements”) with Kasima LLC (“Kasima”), which is an indirect subsidiary of DCIP and a related party to the Company. Upon signing the Agreements, the Company contributed the majority of its U.S. digital projection systems to DCIP, which DCIP then contributed to Kasima. The Company has a variable interest in Kasima through the terms of its master equipment lease agreement; however, the Company has determined that it is not the primary beneficiary of Kasima, as the Company does not have the ability to direct the activities of Kasima that most significantly impact Kasima’s economic performance.

As of December 31, 2014, the Company had a 33% voting interest in DCIP and a 24.3% economic interest in DCIP. The Company accounts for its investment in DCIP and its subsidiaries under the equity method of accounting.

 

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