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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

 

to account for lease expenses on a straight-line basis, where lease payments are not made on such a basis. Theatre rent expense was as follows:

 

     Year Ended December 31,  
     2012      2013      2014  

Fixed rent expense

   $ 205,770       $ 224,056       $ 237,891   

Contingent rent and other facility lease expenses

     75,845         83,795         79,205   
  

 

 

    

 

 

    

 

 

 

Total facility lease expense

   $ 281,615       $ 307,851       $ 317,096   
  

 

 

    

 

 

    

 

 

 

Future minimum lease payments under noncancelable operating and capital leases that have initial or remaining terms in excess of one year at December 31, 2014 are due as follows:

 

     Operating
Leases
     Capital
Leases
 

2015

   $ 256,206       $ 33,227   

2016

     248,369         33,185   

2017

     225,900         31,580   

2018

     195,930         31,923   

2019

     162,816         31,542   

Thereafter

     725,046         158,071   
  

 

 

    

 

 

 

Total

   $ 1,814,267         319,528   
  

 

 

    

Amounts representing interest payments

        (101,056
     

 

 

 

Present value of future minimum payments

        218,472   

Current portion of capital lease obligations

        (16,494
     

 

 

 

Capital lease obligations, less current portion

      $ 201,978   
     

 

 

 

Employment Agreements —   The Company has employment agreements with Lee Roy Mitchell, Timothy Warner, Robert Copple, Valmir Fernandes, Michael Cavalier, Steve Bunnell and Rob Carmony that are subject to automatic extensions for a one-year period, unless the employment agreements are terminated. The base salaries stipulated in the employment agreements are subject to review at least annually during the term of the agreements for increase (but not decrease) by the Company’s Compensation Committee. Management personnel subject to these employment agreements are eligible to receive annual cash incentive bonuses upon the Company meeting certain performance targets established by the Compensation Committee in the first quarter of the fiscal year.

Effective January 21, 2014, the Company amended its employment agreements with Tim Warner and Robert Copple. Under these agreements, Tim Warner continues as the Company’s Chief Executive Officer and Robert Copple assumed the role of President and Chief Operating Officer. On November 12, 2014, the Company amended its employment agreement with Lee Roy Mitchell.

On June 23, 2014 the Company’s board of directors announced that Mr. Sean Gamble will be the Company’s Executive Vice President – Chief Financial Officer. The Company and Mr. Gamble entered into an Employment Agreement effective as of August 25, 2014 (the “Agreement”). The term of the Agreement is three years provided, however, that at the end of each year of the term, the term shall be automatically extended for an additional one-year period. The base salary stipulated in the Agreement is subject to review during the term of the Agreement for increase (but not decrease) each year by the compensation committee of the Company’s board

 

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