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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

 

14. FOREIGN CURRENCY TRANSLATION

The accumulated other comprehensive loss account in stockholders’ equity of $81,819 and $144,772 at December 31, 2013 and 2014, respectively, includes the cumulative foreign currency losses of $78,947 and $147,930, respectively, from translating the financial statements of the Company’s international subsidiaries, the change in fair values of the Company’s interest rate swap agreements that are designated as hedges and the change in fair value of the Company’s available-for-sale securities.

All foreign countries where the Company has operations are non-highly inflationary and the local currency is the same as the functional currency in all of the locations. Thus, any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss.

Below is a summary of the impact of translating the financial statements of the Company’s international subsidiaries as of and for the years ended December 31, 2012, 2013 and 2014.

 

                          Other Comprehensive  

Country

   Exchange Rates as of
December 31,
     Income (Loss)
For Year Ended December 31,
 
     2012      2013      2014      2012      2013      2014  

Brazil

     2.05         2.36         2.69       $ (21,690    $ (34,451    $ (30,723

Argentina

     4.91         6.52         8.55         (12,926      (24,845      (20,197

Colombia

     1,768.23         1,926.83         2,392.46         2,790         (2,969      (7,632

Chile

     479.8         525.5         606.2         2,958         (3,570      (5,580

Peru

     2.56         2.84         3.05         2,021         (3,685      (2,785

All other

              6,842         (185      (2,066

Sale of Mexico subsidiary

              —           22,088         —     
           

 

 

    

 

 

    

 

 

 
            $ (20,005    $ (47,617    $ (68,983
           

 

 

    

 

 

    

 

 

 

During November 2013, the Company completed the sale of certain of its Mexico subsidiaries. As a result of this sale, the accumulated other comprehensive loss previously unrealized for these Mexico subsidiaries of $22,088 was recognized by the Company as part of the gain on sale. See Note 5 for additional information.

 

15. NONCONTROLLING INTERESTS IN SUBSIDIARIES

Noncontrolling interests in subsidiaries of the Company were as follows at December 31:

 

     December 31,  
     2013      2014  

Cinemark Partners II — 24.6% interest (in one theatre)

   $ 7,467       $ 7,769   

Laredo Theatres — 25% interest (in two theatres)

     520         1,112   

Greeley Ltd. — 49.0% interest (in one theatre)

     555         589   

Other

     453         859   
  

 

 

    

 

 

 

Total

   $ 8,995       $ 10,329   
  

 

 

    

 

 

 

During August 2013, the Company purchased the 49.9% noncontrolling interest share of one of its Brazilian subsidiaries, Adamark Cinemas S.A. (“Adamark”), for approximately $5,621 in cash. Adamark had investments in two of the Company’s Brazilian theatres. The increase in the Company’s ownership interest in the Brazilian

 

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