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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

 

13.

NONCONTROLLING INTERESTS IN SUBSIDIARIES

Noncontrolling interests in subsidiaries of the Company were as follows at December 31:

 

 

 

December 31,

 

 

 

2016

 

 

2017

 

Cinemark Partners II — 24.6% interest (in one theatre)

 

$

8,249

 

 

$

8,795

 

Laredo Theatres – 25% interest (in two theatres)

 

 

1,695

 

 

 

1,746

 

Greeley Ltd. — 49% interest (in one theatre)

 

 

689

 

 

 

843

 

Other

 

 

509

 

 

 

509

 

Total

 

$

11,142

 

 

$

11,893

 

 

During December 2016 the Company purchased the remaining 25% noncontrolling interest of one of its Chilean subsidiaries, Flix Impirica S.A. (“Flix Impirica”), for approximately $450 in cash.  The increase in the Company’s ownership interest in the Chilean subsidiary was accounted for as an equity transaction in accordance with ASC Topic 810-10-45-23. The Company recorded a decrease in additional paid-in-capital of approximately $27, which represented the difference between the cash paid and the book value of the Chilean subsidiary’s noncontrolling interest account, which was approximately $423. As a result of this transaction, the Company now owns 100% of the shares in Flix Impirica.

Below is a summary of the impact of changes in the Company’s ownership interest in its subsidiaries on its equity:

 

 

 

Year ended December 31,

 

 

 

2015

 

 

2016

 

 

2017

 

Net income attributable to Cinemark Holdings, Inc.

 

$

216,869

 

 

$

255,091

 

 

$

264,180

 

Transfers from noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in Cinemark Holdings, Inc. additional paid-in-capital for the buyout of Flix Impirica non-controlling interest

 

 

 

 

 

(27

)

 

 

 

Net transfers from non-controlling interests

 

 

 

 

 

(27

)

 

 

 

Change from net income attributable to Cinemark Holdings, Inc. and transfers from noncontrolling interests

 

$

216,869

 

 

$

255,064

 

 

$

264,180

 

 

14.

CAPITAL STOCK

Common Stock — Common stockholders are entitled to vote on all matters submitted to a vote of the Company’s stockholders. Subject to the rights of holders of any then outstanding shares of the Company’s preferred stock, the Company’s common stockholders are entitled to any dividends that may be declared by the board of directors. The shares of the Company’s common stock are not subject to any redemption provisions. The Company has no issued and outstanding shares of preferred stock.

The Company’s ability to pay dividends is effectively limited by its status as a holding company and the terms of its subsidiary’s indentures and senior secured credit facility, which also significantly restricts the ability of certain of the Company’s subsidiaries to pay dividends directly or indirectly to the Company. See Note 10. Furthermore, certain of the Company’s foreign subsidiaries currently have a deficit in retained earnings which prevents the Company from declaring and paying dividends from those subsidiaries.

Treasury Stock — Treasury stock represents shares of common stock repurchased by the Company and not yet retired.  The Company has applied the cost method in recording its treasury shares.

F-30