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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

 

9. IMPAIRMENT OF LONG-LIVED ASSETS

The Company reviews long-lived assets for impairment indicators on a quarterly basis or whenever events or changes in circumstances indicate the carrying amount of the assets may not be fully recoverable. See Note 1 for discussion of the Company’s impairment policy.

The Company’s long-lived asset impairment losses are summarized in the following table:

 

     Year Ended December 31,  
     2012      2013      2014  

United States theatre properties

   $ 2,693       $ 1,911       $ 6,168   

International theatre properties

     338         1,175         —     
  

 

 

    

 

 

    

 

 

 

Subtotal

     3,031         3,086         6,168   

Intangible assets (see Note 8)

     —           708         479   
  

 

 

    

 

 

    

 

 

 

Impairment of long-lived assets

   $ 3,031       $ 3,794       $ 6,647   
  

 

 

    

 

 

    

 

 

 

The long-lived asset impairment charges recorded during each of the years presented are specific to theatres that were directly and individually impacted by increased competition, adverse changes in market demographics, or adverse changes in the development or the conditions of the areas surrounding the theatre. As of December 31, 2014, the estimated aggregate remaining fair value of the long-lived assets impaired during the year ended December 31, 2014 was approximately $6,856.

 

10. DEFERRED CHARGES AND OTHER ASSETS — NET

As of December 31, deferred charges and other assets — net consisted of the following:

 

     December 31,  
     2013      2014  

Debt issue costs, net of accumulated amortization of $5,800 and $11,045, respectively

   $ 36,725       $ 31,473   

Long-term prepaid rents

     6,738         7,296   

Construction and other deposits

     29,006         14,171   

Equipment to be placed in service

     22,333         14,124   

Other

     9,498         10,926   
  

 

 

    

 

 

 

Total

   $ 104,300       $ 77,990   
  

 

 

    

 

 

 

During the year ended December 31, 2013, the Company paid debt issue costs of approximately $8,300 in connection with the issuance of its 4.875% senior notes during May 2013. The Company also wrote-off debt issue costs of $7,634 related to the redemption of its 8.625% senior notes during June 2013. See Note 11 for discussion of long term debt activity.

 

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