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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 05/09/2018
Entire Document
 

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

impairment at the reporting unit level and has allocated goodwill to the reporting unit based on an estimate of its relative fair value. Management considers the reporting unit to be each of its nineteen regions in the U.S. and seven countries internationally with Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala considered one reporting unit (the Company does not have goodwill recorded for all of its international locations).  For the year ended December 31, 2017, the Company performed a quantitative goodwill impairment assessment on all reporting units, in accordance with ASC Topic 350-20-35.  No events or changes in circumstances occurred during the three months ended March 31, 2018 that indicated the carrying value of goodwill might exceed its estimated fair value.

Intangible assets consisted of the following:

 

 

 

Balance at

 

 

 

 

 

 

 

 

 

 

Balance at

 

 

 

January 1,

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

 

2018

 

 

Amortization

 

 

Other (1)

 

 

2018

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

$

105,895

 

 

$

 

 

$

(125

)

 

$

105,770

 

Accumulated amortization

 

 

(68,869

)

 

 

(1,495

)

 

 

-

 

 

 

(70,364

)

Total net intangible assets with finite lives

 

$

37,026

 

 

$

(1,495

)

 

$

(125

)

 

$

35,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets with indefinite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tradename

 

 

299,735

 

 

 

 

23

 

 

 

299,758

 

Total intangible assets — net

 

$

336,761

 

 

$

(1,495

)

 

$

(102

)

 

$

335,164

 

 

 

(1)

Amounts represent foreign currency translation adjustments.

For the year ended December 31, 2017, the Company performed a quantitative assessment for all definite and indefinite-lived tradename assets.  No events or changes in circumstances occurred during the three months ended March 31, 2018 that indicated the carrying value of its tradename assets might exceed their estimated fair values.

Estimated aggregate future amortization expense for intangible assets is as follows:

 

For the nine months ended December 31, 2018

 

$

4,104

 

For the twelve months ended December 31, 2019

 

 

5,267

 

For the twelve months ended December 31, 2020

 

 

5,535

 

For the twelve months ended December 31, 2021

 

 

3,685

 

For the twelve months ended December 31, 2022

 

 

3,280

 

Thereafter

 

 

13,535

 

Total

 

$

35,406

 

 

11.

Impairment of Long-Lived Assets

The Company reviews long-lived assets for impairment indicators on a quarterly basis or whenever events or changes in circumstances indicate the carrying amount of the assets may not be fully recoverable. See discussion of the Company’s long-lived asset impairment evaluation process in Note 1 to the Company’s financial statements as included in its 2017 Annual Report on Form 10-K.  As noted in the discussion, fair value is determined based on a multiple of cash flows, which was six and a half times for the evaluations performed during the three months ended March 31, 2018 and 2017. As of March 31, 2018, the estimated aggregate fair value of the long-lived assets impaired during the three months ended March 31, 2018 was $590.

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