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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

 

A highly inflationary economy is defined as an economy with a cumulative inflation rate of approximately 100 percent or more over a three-year period. If a country’s economy is classified as highly inflationary, the financial statements of the foreign entity operating in that country must be remeasured to the functional currency of the reporting entity.  There has been a steady devaluation of the Argentine peso relative to the U.S. dollar in recent years.  The official cumulative inflation rate for Argentina over the last three years has not definitively reached 100 percent and remeasurement is not required.  The Company will continue to monitor the inflation on a quarterly basis to determine whether remeasurement is necessary.  

Below is a summary of the impact of translating the September 30, 2017 financial statements of the Company’s international subsidiaries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Comprehensive

 

 

 

Exchange Rate as of

 

 

Income (Loss) for The

 

Country

 

September 30, 2017

 

 

December 31, 2016

 

 

Nine Months Ended September 30, 2017

 

Brazil

 

 

3.17

 

 

 

3.26

 

 

$

6,700

 

Argentina

 

 

17.70

 

 

 

16.04

 

 

 

(5,918

)

Peru

 

 

3.35

 

 

 

3.45

 

 

 

1,133

 

Chile

 

 

640.60

 

 

 

679.09

 

 

 

3,136

 

All other

 

 

 

 

 

 

 

 

 

 

527

 

 

 

 

 

 

 

 

 

 

 

$

5,578

 

 

During the nine months ended September 30, 2017, the Company reclassified $1,551 of cumulative foreign currency translation adjustments, related to a Canadian subsidiary that was liquidated, from accumulated other comprehensive loss to foreign currency exchange gain on the condensed consolidated statement of income.

13.

Supplemental Cash Flow Information

 

The following is provided as supplemental information to the condensed consolidated statements of cash flows:

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2017

 

 

2016

 

Cash paid for interest

 

$

58,334

 

 

$

68,552

 

Cash paid for income taxes, net of refunds received

 

$

81,271

 

 

$

66,757

 

Noncash investing and financing activities:

 

 

 

 

 

 

 

 

Change in accounts payable and accrued expenses for the

   acquisition of theatre properties and equipment (1)

 

$

(5,947

)

 

$

132

 

Theatre properties acquired under capital lease

 

$

30,517

 

 

$

11,292

 

Investment in NCM – receipt of common units (see

   Note 6)

 

$

18,363

 

 

$

11,111

 

Dividends accrued on unvested restricted stock unit awards

 

$

(423

)

 

$

(360

)

 

(1)

Additions to theatre properties and equipment included in accounts payable as of September 30, 2017 and December 31, 2016 were $34,678 and $40,625, respectively.

14.

Segments

The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report total assets by segment because that information is not used to evaluate the performance of or allocate resources between segments.

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