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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

 

to account for lease expenses on a straight-line basis, where lease payments are not made on such a basis. Theatre rent expense was as follows:

 

     Year Ended December 31,  
     2011      2012      2013  

Fixed rent expense

   $ 200,006       $ 205,770       $ 224,056   

Contingent rent and other facility lease expenses

     76,272         75,845         83,795   
  

 

 

    

 

 

    

 

 

 

Total facility lease expense

   $ 276,278       $ 281,615       $ 307,851   
  

 

 

    

 

 

    

 

 

 

Future minimum lease payments under noncancelable operating and capital leases that have initial or remaining terms in excess of one year at December 31, 2013 are due as follows:

 

     Operating
Leases
     Capital
Leases
 

2014

   $ 254,911       $ 31,198   

2015

     255,755         31,905   

2016

     247,757         31,841   

2017

     228,721         30,227   

2018

     196,415         30,568   

Thereafter

     881,622         170,775   
  

 

 

    

 

 

 

Total

   $ 2,065,181         326,514   
  

 

 

    

Amounts representing interest payments

        (110,158
     

 

 

 

Present value of future minimum payments

      $ 216,356   

Current portion of capital lease obligations

        (13,847
     

 

 

 

Capital lease obligations, less current portion

      $ 202,509   
     

 

 

 

Employment Agreements — The Company has employment agreements with Lee Roy Mitchell, Timothy Warner, Robert Copple, Valmir Fernandes, Michael Cavalier, Steve Bunnell and Rob Carmony that are subject to automatic extensions for a one-year period, unless the employment agreements are terminated. The base salaries stipulated in the employment agreements are subject to review at least annually during the term of the agreements for increase (but not decrease) by the Company’s Compensation Committee. Management personnel subject to these employment agreements are eligible to receive annual cash incentive bonuses upon the Company meeting certain performance targets established by the Compensation Committee in the first quarter of the fiscal year.

Effective January 21, 2014, the Company amended its employment agreements with Tim Warner and Robert Copple. Under these agreements Tim Warner will continue as the Company’s Chief Executive Officer and Robert Copple will assume the role of President and Chief Operating Officer. Mr. Copple will continue to serve as the Company’s Chief Financial Officer until a new Chief Financial Officer is hired by the Company. See Note 27 for additional information.

Retirement Savings Plan — The Company has a 401(k) retirement savings plan for the benefit of all employees and makes contributions as determined annually by the board of directors. Contribution payments of $2,410 and $2,483 were made in 2012 (for plan year 2011) and 2013 (for plan year 2012), respectively. A liability of approximately $2,753 has been recorded at December 31, 2013 for contribution payments to be made in 2014 (for plan year 2013).

 

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