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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 08/09/2016
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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

 

     Cinemark                
     Holdings, Inc.                
     Stockholders’      Noncontrolling      Total  
     Equity      Interests      Equity  

Balance at January 1, 2015

   $ 1,112,800       $ 10,329       $ 1,123,129   

Share based awards compensation expense

     6,475         —           6,475   

Stock withholdings related to share based awards that vested during the six months ended June 30, 2015

     (4,748      —           (4,748

Tax benefit related to share based awards vesting

     2,244         —           2,244   

Dividends paid to stockholders (2)

     (57,900      —           (57,900

Dividends accrued on unvested restricted stock unit awards (2)

     (200      —           (200

Dividends paid to noncontrolling interests

     —           (294      (294

Net income

     112,779         1,013         113,792   

Fair value adjustments on interest rate swap agreements designated as hedges, net of settlements, net of taxes of $958

     1,612         —           1,612   

Fair value adjustments on available-for-sale securities, net of taxes of $236

     412         —           412   

Other comprehensive loss in equity method investees

     (2,938      —           (2,938

Foreign currency translation adjustments

     (46,047      —           (46,047
  

 

 

    

 

 

    

 

 

 

Balance at June 30, 2015

   $ 1,124,489       $ 11,048       $ 1,135,537   
  

 

 

    

 

 

    

 

 

 

 

(1)  The Company’s board of directors declared a cash dividend for the first quarter of 2016 in the amount of $0.27 per share of common stock payable to stockholders of record on June 8, 2016. The dividend was paid on June 22, 2016. The Company’s board of directors declared a cash dividend for the fourth quarter of 2015 in the amount of $0.27 per share of common stock payable to stockholders of record on March 7, 2016. The dividend was paid on March 18, 2016.
(2)  The Company’s board of directors declared a cash dividend for the first quarter of 2015 in the amount of $0.25 per share of common stock payable to stockholders of record on June 5, 2015. The dividend was paid on June 19, 2015. The Company’s board of directors declared a cash dividend for the fourth quarter of 2014 in the amount of $0.25 per share of common stock payable to stockholders of record on March 4, 2015. The dividend was paid on March 18, 2015.

6. Investment in National CineMedia

The Company has an investment in National CineMedia, LLC (“NCM”). NCM operates a digital in-theatre network in the U.S. for providing cinema advertising. Upon joining NCM, the Company entered into an Exhibitor Services Agreement with NCM (“ESA”), pursuant to which NCM provides advertising, promotion and event services to our theatres. As described further in Note 6 to the Company’s financial statements as included in its 2015 Annual Report on Form 10-K, on February 13, 2007, National CineMedia, Inc. (“NCM, Inc.”), an entity that serves as the sole manager of NCM, completed an initial public offering (“IPO”) of its common stock. In connection with the NCM Inc. initial public offering, the Company amended its operating agreement and the ESA. Following the NCM, Inc. IPO, the Company does not recognize undistributed equity in the earnings on its original NCM membership units (referred to herein as the Company’s Tranche 1 Investment) until NCM’s future net earnings, less distributions received, surpass the amount of the excess distribution. The Company recognizes equity in earnings on its Tranche 1 Investment only to the extent it receives cash distributions from NCM. The Company recognizes cash distributions it receives from NCM on its Tranche 1 Investment as a component of earnings as Distributions from NCM. The Company believes that the accounting model provided by ASC 323-10-35-22 for recognition of equity investee losses in excess of an investor’s basis is analogous to the accounting for equity income subsequent to recognizing an excess distribution.

 

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