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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 11/05/2015
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Table of Contents

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

Below is a summary of assets and liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of September 30, 2015:

 

     Carrying
Value
     Fair Value  

Description

      Level 1      Level 2      Level 3  

Interest rate swap liability – current (see Note 9)

   $ (781    $ —         $ —         $ (781

Investment in RealD (see Note 7)

   $ 11,751       $ 11,751       $ —         $ —     

Below is a summary of assets and liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of December 31, 2014:

 

     Carrying
Value
     Fair Value  

Description

      Level 1      Level 2      Level 3  

Interest rate swap liabilities – current (see Note 9)

   $ (4,255    $ —         $ —         $ (4,255

Interest rate swap liabilities – long term (see Note 9)

   $ (317    $ —         $ —         $ (317

Investment in RealD (see Note 7)

   $ 14,429       $ 14,429       $ —         $ —     

Below is a reconciliation of the beginning and ending balance for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

     Liabilities  
     2015      2014  

Beginning balances - January 1

   $ 4,572       $ 9,176   

Total loss included in accumulated other comprehensive loss

     616         1,180   

Settlements

     (4,407      (4,518
  

 

 

    

 

 

 

Ending balances – September 30

   $ 781       $ 5,838   
  

 

 

    

 

 

 

The Company also uses the market approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its long-lived assets (see Note 10 and Note 11). Additionally, the Company uses the market approach to estimate the fair value of its long-term debt (see Note 4). There were no changes in valuation techniques and there were no transfers in or out of Level 1, Level 2 or Level 3 during the nine months ended September 30, 2015.

 

13. Foreign Currency Translation

The accumulated other comprehensive loss account in stockholders’ equity of $252,276 and $144,772 at September 30, 2015 and December 31, 2014, respectively, includes cumulative foreign currency adjustments of $253,123 and $147,930, respectively, from translating the financial statements of the Company’s international subsidiaries, and also includes 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.

 

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