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SEC Filings

10-K
CINEMARK HOLDINGS, INC. filed this Form 10-K on 02/28/2014
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Table of Contents

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

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 amended 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 12. 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.

Below is a summary of the Company’s treasury stock activity for the years ended December 31, 2012 and 2013:

 

     Number of
Treasury
Shares
     Cost  

Balance at January 1, 2012

     3,391,592       $ 45,219   

Restricted stock forfeitures (1)

     14,423         —     

Restricted stock withholdings (2)

     147,070         3,263   
  

 

 

    

 

 

 

Balance at December 31, 2012

     3,553,085       $ 48,482   

Restricted stock forfeitures (1)

     22,653         —     

Restricted stock withholdings (2)

     119,197         3,464   
  

 

 

    

 

 

 

Balance at December 31, 2013

     3,694,935       $ 51,946   
  

 

 

    

 

 

 

 

(1) 

The Company repurchased forfeited and canceled restricted shares at a cost of $0.001 per share in accordance with the Company’s Amended and Restated 2006 Long Term Incentive Plan.

(2) 

The Company withheld restricted shares as a result of the election by certain employees to satisfy their tax liabilities upon vesting in restricted stock. The Company determined the number of shares to be withheld based upon market values that ranged from $22.40 to $30.23 per share.

As of December 31, 2013, the Company had no plans to retire any shares of treasury stock.

Stock Options — Below is a summary of stock option activity and related information for the years ended December 31, 2011, 2012 and 2013:

 

      Year Ended
December 31, 2011
     Year Ended
December 31, 2012
     Year Ended
December 31, 2013
        
      Shares     Weighted
Average
Exercise
Price
     Shares     Weighted
Average
Exercise
Price
     Number of
Options
    Weighted
Average
Exercise
Price
     Aggregate
Intrinsic
Value
 

Outstanding at January 1

     140,356      $ 7.63         82,166      $ 7.63         22,022      $ 7.63      

Exercised

     (58,190   $ 7.63         (60,144   $ 7.63         (7,438   $ 7.63      
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

Outstanding at December 31

     82,166      $ 7.63         22,022      $ 7.63         14,584      $ 7.63       $ 375   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Vested options at December 31

     82,166      $ 7.63         22,022      $ 7.63         14,584      $ 7.63       $ 375   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

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