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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 11/03/2017
Entire Document
 

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, 2016

 

$

1,099,708

 

 

$

11,105

 

 

$

1,110,813

 

Share based awards compensation expense

 

 

10,247

 

 

 

 

 

10,247

 

Stock withholdings related to share based awards that

   vested during the nine months ended September 30, 2016

 

 

(6,828

)

 

 

 

 

(6,828

)

Issuance of common stock related to restricted stock units

   that vested during the nine months ended September 30, 2016

 

 

1

 

 

 

 

 

1

 

Tax benefit related to share based awards vesting

 

 

1,797

 

 

 

 

 

1,797

 

Dividends paid to stockholders (2)

 

 

(94,117

)

 

 

 

 

(94,117

)

Dividends accrued on unvested restricted stock unit

   awards (2)

 

 

(360

)

 

 

 

 

(360

)

Dividends paid to noncontrolling interests

 

 

 

 

(515

)

 

 

(515

)

Net income

 

 

178,086

 

 

 

1,454

 

 

 

179,540

 

Fair value adjustments on interest rate swap agreements

   designated as hedges, net of settlements, net of

   taxes of  $138

 

 

234

 

 

 

 

 

234

 

Gain realized on available-for-sale securities, net of

   taxes of $1,180

 

 

(2,011

)

 

 

 

 

(2,011

)

Other comprehensive loss in equity method investees

 

 

(183

)

 

 

 

 

(183

)

Foreign currency translation adjustments

 

 

34,974

 

 

 

24

 

 

 

34,998

 

Balance at September 30, 2016

 

$

1,221,548

 

 

$

12,068

 

 

$

1,233,616

 

 

 

(2)

Below is a summary of dividends paid to stockholders and accrued on unvested restricted stock unit awards during the nine months ended September 30, 2016:  

 

 

 

 

 

 

Amount per Share

 

 

 

 

Declaration Date

 

Record Date

 

Payable Date

 

of Common Stock

 

 

Total

 

2/24/2016

 

3/7/2016

 

3/18/2016

 

$

0.27

 

 

$

31,367

 

5/26/2016

 

6/8/2016

 

6/22/2016

 

 

0.27

 

 

 

31,373

 

8/18/2016

 

8/31/2016

 

9/13/2016

 

 

0.27

 

 

 

31,737

 

 

 

 

 

Total

 

$

0.81

 

 

$

94,477

 

 

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 and promotions to our theatres. As described further in Note 5 to the Company’s financial statements as included in its 2016 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 Topic 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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