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SEC Filings

10-K
CINEMARK HOLDINGS, INC. filed this Form 10-K on 02/23/2018
Entire Document
 

CINEMARK HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

Deferred Income Taxes

The tax effects of significant temporary differences and tax loss and tax credit carryforwards comprising the net long-term deferred income tax liabilities as of December 31, 2016 and 2017 consisted of the following:

 

 

 

December 31,

 

 

 

2016

 

 

2017

 

Deferred liabilities:

 

 

 

 

 

 

 

 

Theatre properties and equipment

 

$

176,781

 

 

$

147,208

 

Intangible  asset — other

 

 

36,052

 

 

 

30,770

 

Intangible  asset — tradenames

 

 

112,747

 

 

 

72,967

 

Investment in partnerships

 

 

107,066

 

 

 

67,449

 

Total deferred liabilities

 

 

432,646

 

 

 

318,394

 

Deferred assets:

 

 

 

 

 

 

 

 

Deferred lease expenses

 

 

24,026

 

 

 

14,714

 

Exchange (gain) loss

 

 

(731

)

 

 

220

 

Deferred revenue - NCM

 

 

130,005

 

 

 

85,816

 

Capital lease obligations

 

 

85,721

 

 

 

67,369

 

Other tax loss carryforwards

 

 

15,883

 

 

 

15,564

 

Other tax credit carryforwards

 

 

48,033

 

 

 

38,436

 

Other expenses, not currently deductible for tax purposes

 

 

11,270

 

 

 

13,801

 

Total deferred assets

 

 

314,207

 

 

 

235,920

 

Net deferred income tax liability before valuation allowance

 

 

118,439

 

 

 

82,474

 

Valuation allowance against deferred assets – non-current

 

 

14,524

 

 

 

35,246

 

Net deferred income tax liability

 

$

132,963

 

 

$

117,720

 

Net deferred tax liability — Foreign

 

$

7,571

 

 

$

3,073

 

Net deferred tax liability — U.S.

 

 

125,392

 

 

 

114,647

 

Total

 

$

132,963

 

 

$

117,720

 

 

A significant portion of our foreign tax credit carryforwards expire in 2024.  Some foreign net operating losses will expire in the next reporting period; however, some losses may be carried forward indefinitely. State net operating losses may be carried forward for periods of between five and twenty years with the last expiring year being 2037.

The Company’s valuation allowance changed from $14,524 at December 31, 2016 to $35,246 at December 31, 2017 (see Note 20). The increase was a result of the Tax Act and its impact on the estimated usage of foreign tax credit carryforwards before their expiration.  

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