CINEMARK HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In thousands, except share and per share data
Acquisition of Other U.S. Theatres
The Company acquired two additional theatres with 30 screens during April 2013 in two separate transactions for an aggregate purchase
price of approximately $22,372 in cash plus the assumption of certain liabilities. The transactions were accounted for by applying the acquisition method. The following table represents the aggregate fair values of identifiable assets acquired and
the liabilities assumed as of the acquisition date:
|
|
|
|
|
Theatre properties and equipment |
|
$ |
17,524 |
|
Goodwill |
|
|
17,409 |
|
Capital lease liability |
|
|
(12,173 |
) |
Deferred revenue |
|
|
(388 |
) |
|
|
|
|
|
Total |
|
$ |
22,372 |
|
|
|
|
|
|
Acquisition of Argentina Theatres
During August 2011, the Company acquired ten theatres with 95 screens from Hoyts General Cinema South America, Inc. in a stock
purchase for approximately $66,958 in cash. The acquisition resulted in an expansion of the Companys international theatre base. The Company incurred approximately $200 in transaction costs, which are reflected in general and administrative
expenses on the consolidated statement of income for the year ended December 31, 2011. The transaction was accounted for by applying the acquisition method.
The following table represents the fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date:
|
|
|
|
|
Theatre properties and equipment |
|
$ |
24,098 |
|
Tradename |
|
|
10,032 |
|
Favorable leases |
|
|
3,919 |
|
Other intangible assets |
|
|
884 |
|
Goodwill |
|
|
43,018 |
|
Long-term debt |
|
|
(5,993 |
) |
Deferred tax liability |
|
|
(7,240 |
) |
Other liabilities, net of other assets |
|
|
(1,760 |
) |
|
|
|
|
|
Total |
|
$ |
66,958 |
|
|
|
|
|
|
The weighted average amortization period for the intangible assets acquired was approximately seven years
as of the acquisition date. The acquisition is still being reviewed by the Argentina Comisión Nacional de Defensa de la Competencia (CNDC).
Disposition of Mexico Subsidiaries
During February 2013, the Company
entered into a stock purchase agreement with Grupo Cinemex, S.A. De C.V. pursuant to which the Company would sell its Mexican subsidiaries, which consisted of 31 theatres and 290 screens. The transaction was subject to approval by the Mexican
Federal Competition Commission (the Competition Commission). During August 2013, the Competition Commission voted three to two to block the transaction and the Company filed an appeal for the Competition Commission to reconsider the
sale. During
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