Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Jun. 27, 2019 | Feb. 18, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 26, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NCMI | ||
Entity Registrant Name | National CineMedia, Inc. | ||
Entity Central Index Key | 0001377630 | ||
Entity Filer Category | Accelerated Filer | ||
Current Fiscal Year End Date | --12-26 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 328,535,741 | ||
Entity Common Stock, Shares Outstanding | 79,751,489 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 55.9 | $ 41.4 |
Short-term marketable securities | 17.5 | 24 |
Receivables, net of allowance of $6.2 and $6.0, respectively | 170.8 | 149.9 |
Income tax receivable | 0 | 0.3 |
Amounts due from founding members, net | 6.6 | 5.8 |
Current portion of notes receivable - founding members (related parties of $0.0 and $4.2, respectively) | 0 | 5.6 |
Prepaid expenses and other current assets | 3.5 | 3.9 |
Total current assets | 254.3 | 230.9 |
NON-CURRENT ASSETS: | ||
Property and equipment, net of accumulated depreciation of $70.7 and $62.5, respectively | 33.2 | 33.6 |
Intangible assets, net of accumulated amortization of $198.9 and $172.7, respectively | 643.7 | 684.5 |
Deferred tax assets, net of valuation allowance of $81.6 and $80.1, respectively | 162.1 | 173.9 |
Other investments | 1 | 3 |
Long-term marketable securities | 7.5 | 10.2 |
Debt issuance costs, net | 3.9 | 5 |
Other assets | 24.3 | 0.7 |
Total non-current assets | 875.7 | 910.9 |
TOTAL ASSETS | 1,130 | 1,141.8 |
CURRENT LIABILITIES: | ||
Amounts due to founding members, net | 36.8 | 30 |
Payable to founding members under the TRA (related party payables of $10.3 and $11.2, respectively) | 14.2 | 15.5 |
Accrued expenses | 22.1 | 21.7 |
Accrued payroll and related expenses | 13.8 | 15.3 |
Accounts payable | 20.7 | 18 |
Deferred revenue | 7.6 | 7.3 |
Short-term debt | 2.7 | 2.7 |
Other Liabilities, Current | 1.6 | 0 |
Total current liabilities | 119.5 | 110.5 |
NON-CURRENT LIABILITIES: | ||
Long-term debt, net of debt issuance costs of $9.0 and $7.8, respectively | 923.9 | 920.9 |
Payable to founding members under the TRA (related party payables of $133.5 and $141.1, respectively) | 183.8 | 195.6 |
Other liabilities | 24 | 4 |
Total non-current liabilities | 1,131.7 | 1,120.5 |
Total liabilities | 1,251.2 | 1,231 |
COMMITMENTS AND CONTINGENCIES (NOTE 13) | ||
NCM, Inc. Stockholders’ Equity/(Deficit): | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding, respectively | 0 | 0 |
Common stock, $0.01 par value; 175,000,000 shares authorized, 77,568,986 and 76,976,398 issued and outstanding, respectively | 0.8 | 0.8 |
Additional paid in capital (deficit) | (209.2) | (215.2) |
Retained earnings (distributions in excess of earnings) | (171.1) | (153.6) |
Total NCM, Inc. stockholders’ equity/(deficit) | (379.5) | (368) |
Noncontrolling interests | 258.3 | 278.8 |
Total equity/(deficit) | (121.2) | (89.2) |
TOTAL LIABILITIES AND EQUITY/DEFICIT | $ 1,130 | $ 1,141.8 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Allowance for doubtful accounts receivable | $ 6.2 | $ 6 |
Current portion of notes receivable - founding members | 0 | 5.6 |
Accumulated depreciation, property and equipment | 70.7 | 62.5 |
Accumulated amortization, intangible assets | 198.9 | 172.7 |
Deferred tax assets, valuation allowance | 81.6 | 80.1 |
Current payable to founding members under tax receivable agreement | 14.2 | 15.5 |
Long-term payable to founding members under tax receivable agreement | 183.8 | 195.6 |
Debt issuance costs, long-term | $ 9 | $ 7.8 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, shares issued (in shares) | 77,568,986 | 76,976,398 |
Common stock, shares outstanding (in shares) | 77,568,986 | 76,976,398 |
Related Party Founding Members | ||
Current portion of notes receivable - founding members | $ 0 | $ 4.2 |
Current payable to founding members under tax receivable agreement | 10.3 | 11.2 |
Long-term payable to founding members under tax receivable agreement | $ 133.5 | $ 141.1 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Revenue (including revenue from related parties of $23.0, $28.4 and $29.9, respectively) | $ 444,800,000 | $ 441,400,000 | $ 426,100,000 |
OPERATING EXPENSES: | |||
Network costs | 13,500,000 | 13,300,000 | 15,800,000 |
Theater access fees and revenue share to founding members (including fees to related parties of $56.6, $69.0 and $76.5, respectively) | 82,700,000 | 81,700,000 | 76,500,000 |
Selling and marketing costs | 64,900,000 | 66,500,000 | 72,000,000 |
Administrative and other costs | 43,800,000 | 48,300,000 | 37,900,000 |
Depreciation expense | 13,600,000 | 12,600,000 | 11,000,000 |
Amortization of Intangible Assets | 26,700,000 | 27,300,000 | 26,600,000 |
Amortization of Leased Asset | 26,700,000 | 0 | 0 |
Total | 283,500,000 | 287,100,000 | 272,200,000 |
OPERATING INCOME | 161,300,000 | 154,300,000 | 153,900,000 |
NON-OPERATING EXPENSES: | |||
Interest on borrowings | 58,000,000 | 55,400,000 | 52,800,000 |
Interest income | (2,100,000) | (1,500,000) | (1,200,000) |
Loss on early retirement of debt, net | 5,600,000 | 700,000 | 0 |
Loss (gain) on re-measurement of the payable to founding members under the TRA | 1,100,000 | (3,800,000) | (192,200,000) |
Other non-operating income | (400,000) | (200,000) | (300,000) |
Total | 62,200,000 | 50,600,000 | (140,900,000) |
INCOME BEFORE INCOME TAXES | 99,100,000 | 103,700,000 | 294,800,000 |
Income tax expense | 12,400,000 | 23,500,000 | 180,300,000 |
CONSOLIDATED NET INCOME | 86,700,000 | 80,200,000 | 114,500,000 |
Less: Net income attributable to noncontrolling interests | 50,600,000 | 50,400,000 | 56,200,000 |
NET INCOME ATTRIBUTABLE TO NCM, INC. | 36,100,000 | 29,800,000 | 58,300,000 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NCM, INC. | $ 36,100,000 | $ 29,800,000 | $ 58,300,000 |
NET INCOME PER NCM, INC. COMMON SHARE: | |||
Basic (in usd per share) | $ 0.47 | $ 0.39 | $ 0.89 |
Diluted (in usd per share) | $ 0.46 | $ 0.37 | $ 0.48 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (in shares) | 77,345,577 | 76,859,087 | 65,226,817 |
Diluted (in shares) | 77,782,567 | 157,403,910 | 151,067,270 |
Dividends declared per common share (in usd per share) | $ 0.68 | $ 0.68 | $ 0.88 |
Advertising operating costs | |||
OPERATING EXPENSES: | |||
Advertising operating costs | $ 38,300,000 | $ 37,400,000 | $ 32,400,000 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Revenue | $ 444.8 | $ 441.4 | $ 426.1 |
Related Party Founding Members | |||
Revenue | 23 | 28.4 | 29.9 |
Fees to related parties | $ 56.6 | $ 69 | $ 76.5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income | $ 86.7 | $ 80.2 | $ 114.5 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | |||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NCM, INC. | $ 36.1 | $ 29.8 | $ 58.3 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income, tax | $ 12.4 | $ 23.5 | $ 180.3 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY/(DEFICIT) - USD ($) | Total | Common Stock | Additional Paid in Capital (Deficit) | Retained Earnings (Distribution in Excess of Earnings) | Noncontrolling Interest |
Balance at Dec. 29, 2016 | $ (232,200,000) | $ 600,000 | $ (343,500,000) | $ (130,800,000) | $ 241,500,000 |
Balance, (in shares) at Dec. 29, 2016 | 59,874,412 | ||||
Distributions to founding members | (85,000,000) | (85,000,000) | |||
NCM LLC equity issued for purchase of intangible asset | 201,800,000 | 78,800,000 | 123,000,000 | ||
Income tax and other impacts of NCM LLC ownership changes | (23,600,000) | 28,600,000 | (52,200,000) | ||
Stock Issued During Period, Value, New Issues, Consolidated | 84,900,000 | ||||
Issuance of shares, value | 200,000 | ||||
Stock Issued Duing Period, Value, New Issues APIC | 84,700,000 | ||||
Adjustments To Additional Paid In Capital, Parent Investment In Subsidiary, net | $ (84,900,000) | ||||
Issuance of shares, shares | 15,600,000 | ||||
NCM, Inc. investment in NCM LLC | $ 84,900,000 | ||||
Comprehensive income, net of tax | 114,500,000 | 58,300,000 | 56,200,000 | ||
Share-based compensation issued, value | (4,100,000) | (4,100,000) | |||
Share-based compensation issued, shares | 767,810 | ||||
Share-based compensation expense/capitalized | 11,500,000 | 7,300,000 | 4,200,000 | ||
Cash dividends declared | (57,700,000) | (57,700,000) | |||
Balance at Dec. 28, 2017 | (74,800,000) | $ 800,000 | (233,100,000) | (130,200,000) | 287,700,000 |
Balance, (in shares) at Dec. 28, 2017 | 76,242,222 | ||||
Distributions to founding members | (72,300,000) | (72,300,000) | |||
NCM LLC equity issued for purchase of intangible asset | 15,900,000 | 7,700,000 | 8,200,000 | ||
Income tax and other impacts of NCM LLC ownership changes | 9,500,000 | 7,000,000 | 2,500,000 | ||
Comprehensive income, net of tax | 80,200,000 | 29,800,000 | 50,400,000 | ||
Share-based compensation issued, value | (2,400,000) | (2,400,000) | |||
Share-based compensation issued, shares | 734,176 | ||||
Share-based compensation expense/capitalized | 7,900,000 | 5,600,000 | 2,300,000 | ||
Cash dividends declared | (53,000,000) | (53,000,000) | |||
Balance at Dec. 27, 2018 | $ (89,200,000) | $ 800,000 | (215,200,000) | (153,600,000) | 278,800,000 |
Balance, (in shares) at Dec. 27, 2018 | 76,976,398 | 76,976,398 | |||
Cumulative-effect adjustment for adoption of 2014-09 | $ (200,000) | ||||
Distributions to founding members | (76,400,000) | (76,400,000) | |||
NCM LLC equity issued for purchase of intangible asset | 7,600,000 | 3,700,000 | 3,900,000 | ||
Income tax and other impacts of NCM LLC ownership changes | (700,000) | (700,000) | 0 | ||
Issuance of shares, value | $ 1,700,000 | ||||
Issuance of shares, shares | 197,118 | ||||
NCM, Inc. investment in NCM LLC | $ 1,700,000 | ||||
Comprehensive income, net of tax | 86,700,000 | 36,100,000 | 50,600,000 | ||
Share-based compensation issued, value | (1,300,000) | (1,300,000) | |||
Share-based compensation issued, shares | 395,470 | ||||
Share-based compensation expense/capitalized | 5,700,000 | 4,300,000 | 1,400,000 | ||
Cash dividends declared | (53,600,000) | (53,600,000) | |||
Balance at Dec. 26, 2019 | $ (121,200,000) | $ 800,000 | $ (209,200,000) | $ (171,100,000) | $ 258,300,000 |
Balance, (in shares) at Dec. 26, 2019 | 77,568,986 | 77,568,986 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY/(DEFICIT) (PARENTHETICAL) - $ / shares | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share | $ 0.68 | $ 0.68 | $ 0.88 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Consolidated net income | $ 86,700,000 | $ 80,200,000 | $ 114,500,000 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | |||
Deferred income tax expense | 12,100,000 | 23,300,000 | 181,900,000 |
Depreciation expense | 13,600,000 | 12,600,000 | 11,000,000 |
Stock Issued During Period, Shares, New Issues | 26,700,000 | 27,300,000 | 26,600,000 |
Amortization of Leased Asset | 26,700,000 | 0 | 0 |
Non-cash share-based compensation | 5,500,000 | 7,800,000 | 11,200,000 |
Impairment on investment | 2,000,000 | 400,000 | 3,100,000 |
Reversal of income tax reserve | 0 | (400,000) | (1,700,000) |
Amortization of debt issuance costs | 2,600,000 | 2,600,000 | 2,600,000 |
Loss on early retirement of debt, net | 5,600,000 | 700,000 | 0 |
Non-cash loss (gain) on re-measurement of the payable to founding members under the TRA | 1,100,000 | (3,800,000) | (192,200,000) |
Other | (1,000,000) | (500,000) | (300,000) |
Changes in operating assets and liabilities: | |||
Receivables, net | (20,900,000) | 10,700,000 | (100,000) |
Accounts payable and accrued expenses | 3,600,000 | 4,800,000 | 1,700,000 |
Amounts due to founding members, net | 2,100,000 | (100,000) | 300,000 |
Deferred revenue | 300,000 | 200,000 | (3,100,000) |
Other, net | (2,600,000) | 1,700,000 | 1,900,000 |
OtherCFfromOperatingActivities | (400,000) | 1,200,000 | 300,000 |
Net cash provided by operating activities | 143,600,000 | 150,300,000 | 138,900,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (14,000,000) | (14,200,000) | (11,600,000) |
Purchases of marketable securities | (24,500,000) | (36,800,000) | (34,400,000) |
Proceeds from sale and maturities of marketable securities | 34,500,000 | 32,200,000 | 50,900,000 |
Purchases of intangible assets from network affiliates | 0 | (100,000) | (2,100,000) |
Payments from related parties, notes receivable | 5,600,000 | 2,800,000 | 5,600,000 |
OtherCFfromInvestingActivities | (100,000) | ||
Net cash provided by (used in) investing activities | 1,600,000 | (16,100,000) | 8,500,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment of dividends | (53,600,000) | (54,400,000) | (58,700,000) |
Proceeds from revolving credit facility | 169,000,000 | 193,200,000 | 80,000,000 |
Repayments of revolving credit facility | (157,000,000) | (178,200,000) | (83,000,000) |
Proceeds from term loan facility | 0 | 270,000,000 | 0 |
Repayments of term loan facility | (2,700,000) | (270,700,000) | 0 |
Repayment of Senior Notes due 2022 and 2026 | 400,000,000 | 0 | 0 |
Redemption of Senior Notes due 2021 | (408,600,000) | (14,200,000) | 0 |
Payment of debt issuance costs | (4,600,000) | (6,900,000) | 0 |
Founding member integration payments and other encumbered theater payments | 21,700,000 | 22,700,000 | 12,900,000 |
Distributions to founding members | (71,900,000) | (82,100,000) | (87,300,000) |
Proceeds from stock option exercises | 0 | 0 | 600,000 |
Repurchase of stock for restricted stock tax withholding | (1,300,000) | (2,400,000) | (4,700,000) |
Net cash used in financing activities | (130,700,000) | (123,000,000) | (140,200,000) |
Payment To Founding Members Under The Tax Receivable Agreement | (15,100,000) | (18,400,000) | (18,800,000) |
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 14,500,000 | 11,200,000 | 7,200,000 |
Cash, cash equivalents, and restricted cash at beginning of period | 41,400,000 | 30,200,000 | 23,000,000 |
Cash, cash equivalents, and restricted cash at end of period | 55,900,000 | 41,400,000 | 30,200,000 |
Supplemental disclosure of non-cash financing and investing activity: | |||
Purchase of an intangible asset with NCM LLC equity | 7,600,000 | 15,900,000 | 201,800,000 |
Accrued distributions to founding members | 32,400,000 | 27,900,000 | 37,600,000 |
Accrued integration and other encumbered theater payments from founding members (including accrued payments due from related parties of $0.1, $0.4 and $0.0, respectively) | 8,400,000 | 7,800,000 | 9,000,000 |
Purchase of subsidiary equity with NCM, Inc. equity | 1,700,000 | 0 | 84,900,000 |
Accrued purchases of property and equipment | 400,000 | 1,100,000 | 400,000 |
Increase (decrease) in dividend equivalent accrual not requiring cash in the period | 100,000 | (1,400,000) | (1,000,000) |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 54,300,000 | 54,100,000 | 49,900,000 |
Cash paid for income taxes, net of refunds | $ 100,000 | $ 300,000 | $ (1,700,000) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Payments from related parties, notes receivable | $ 5.6 | $ 2.8 | $ 5.6 |
Payments from related parties, theater payments | 21.7 | 22.7 | 12.9 |
Accrued payments due from related parties | 8.4 | 7.8 | 9 |
Related Party Founding Members | |||
Payments from related parties, notes receivable | 4.2 | 1.4 | 5.6 |
Payments from related parties, theater payments | 0.8 | 17.2 | 12.9 |
Accrued payments due from related parties | $ 0.1 | $ 0 | $ 0 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NCM, Inc. was incorporated in Delaware as a holding company with the sole purpose of becoming a member and sole manager of NCM LLC, a limited liability company owned by NCM, Inc., Cinemark and Regal. The terms “NCM”, “the Company” or “we” shall, unless the context otherwise requires, be deemed to include the consolidated entity. The Company operates the largest cinema advertising network reaching movie audiences in North America, allowing NCM LLC to sell advertising under long-term ESAs with the founding members and certain third-party network affiliates, under long-term network affiliate agreements. On September 17, 2019, NCM LLC entered into the 2019 ESA Amendments. The 2019 ESA Amendments extended the contract life of the ESAs with Cinemark and Regal by four years resulting in a weighted average remaining term of the ESAs with the founding members (based on attendance) of approximately 19.8 years as of December 26, 2019 . The network affiliate agreements expire at various dates between March 15, 2020 and July 22, 2031 . The weighted average remaining term (based on attendance) of the ESAs and the network affiliate agreements together is 17.1 years as of December 26, 2019 . As of December 26, 2019 , NCM LLC had 159,077,355 common membership units outstanding, of which 77,568,986 ( 48.8% ) were owned by NCM, Inc., 41,770,669 ( 26.2% ) were owned by Regal, 39,737,700 ( 25.0% ) were owned by Cinemark and 0 ( 0.0% ) were owned by AMC. The membership units held by the founding members are exchangeable into NCM, Inc. common stock on a one -for-one basis. Basis of Presentation The Company has prepared its Consolidated Financial Statements and related notes of NCM, Inc. in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain reclassifications have been made to the prior years’ financial statements to conform to the current presentation (refer to Consolidated Statements of Income and Consolidated Statement of Cash Flows, whereby the Company presented depreciation expense and amortization expense as two separate lines). In the opinion of management, all adjustments necessary to present fairly in all material respects the financial position, results of operations and cash flows for all periods presented have been made. The Company’s business is seasonal and for this and other reasons operating results for interim periods may not be indicative of the Company’s full year results or future performance. As a result of the various related-party agreements discussed in Note 9— Related Party Transactions , the operating results as presented are not necessarily indicative of the results that might have occurred if all agreements were with non-related third parties. Advertising is the principal business activity of the Company and is the Company’s only reportable segment under the requirements of ASC 280 – Segment Reporting. Estimates —The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to the reserve for uncollectible accounts receivable, share-based compensation and income taxes. Actual results could differ from those estimates. Significant Accounting Policies Accounting Period —The Company has a 52-week or 53-week fiscal year ending on the first Thursday after December 25. Fiscal years 2017 , 2018 and 2019 contained 52 weeks. Throughout this document, the fiscal years are referred to as set forth below: Fiscal Year Ended Reference in this Document December 26, 2019 2019 December 27, 2018 2018 December 28, 2017 2017 Revenue Recognition —The Company derives revenue principally from the sale of advertising to national, regional and local businesses in Noovie , our cinema advertising and entertainment pre-show seen on movie screens across the U.S., as well as on our LEN, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theater lobbies. We also sell digital online and mobile advertising through our Cinema Accelerator product and across our suite of Noovie digital properties, including Noovie.com, Noovie Shuffle, Name That Movie, Noovie Arcade, and Fantasy Movie League , in order to reach entertainment audiences beyond the theater. The Company also has a long-term agreement to exhibit the advertising of the founding members’ beverage suppliers. The Company considers the terms of each arrangement to determine the appropriate accounting treatment as more fully discussed in Note 2— Revenue from Contracts with Customers . Operating Costs —Advertising fulfillment-related operating costs primarily include personnel and other costs related to advertising fulfillment, payments due to unaffiliated theater circuits under the network affiliate agreements, and to a lesser extent, production costs of non-digital advertising. Payments to the founding members of a theater access fee is comprised of a payment per theater attendee, a payment for post-showtime advertising, a payment per digital screen and a payment per digital cinema projector equipped in the theaters, all of which escalate over time, and payment for revenue share of the Platinum Spot. Refer to Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this document. Network costs include personnel, satellite bandwidth, repairs, and other costs of maintaining and operating the digital network and preparing advertising and other content for transmission across the digital network. Advertising Costs —Advertising-related costs incurred promoting the Company's digital products are included within “Selling and marketing costs” on the audited Consolidated Statements of Income. The Company recognized advertising costs of $ 1.2 million, $ 0.1 million, and $ 0.0 million for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. These costs are expensed when incurred. Cash and Cash Equivalents —All highly liquid debt instruments and investments purchased with an original maturity of three months or less are classified as cash equivalents and are considered available-for-sale securities. There are cash balances in a bank in excess of the federally insured limits or in the form of a money market demand account with a major financial institution. Marketable Securities —The Company’s marketable securities are classified as available-for-sale and are reported at fair value. The fair value of substantially all securities is determined by quoted market information and pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market. Concentration of Credit Risk and Significant Customers —Bad debts are provided for using the allowance for doubtful accounts method based on historical experience and management’s evaluation of outstanding receivables at the end of the period. Receivables are written off when management determines amounts are uncollectible. Trade accounts receivable are uncollateralized and represent a large number of geographically dispersed debtors. The collectability risk with respect to national and regional advertising is reduced by transacting with founding members or large, national advertising agencies who have strong reputations in the advertising industry and clients with stable financial positions. The Company has smaller contracts with thousands of local clients that are not individually significant. As of December 26, 2019 and December 27, 2018 , there were no advertising agency groups or individual customers through which the Company sources national advertising revenue representing more than 10% of the Company’s outstanding gross receivable balance. During the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , there were no customers that accounted for more than 10% of revenue. Receivables consisted of the following (in millions): As of December 26, 2019 December 27, 2018 Trade accounts $ 176.0 $ 154.0 Other 1.0 1.9 Less: Allowance for doubtful accounts (6.2 ) (6.0 ) Total $ 170.8 $ 149.9 Long-lived Assets —Property and equipment is stated at cost, net of accumulated depreciation or amortization. Generally, the equipment associated with the digital network of the founding member theaters is owned by the founding members, while the equipment associated with network affiliate theaters is owned by the Company. Major renewals and improvements are capitalized, while replacements, maintenance, and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. The Company records depreciation using the straight-line method over the following estimated useful lives: Equipment 4-10 years Computer hardware and software 3-5 years Leasehold improvements Lesser of lease term or asset life Software and website development costs developed or obtained for internal use are accounted for in accordance with ASC 350— Internal Use Software and ASC 350– Website Development Costs . The subtopics require the capitalization of certain costs incurred in developing or obtaining software for internal use. Software costs related primarily to the Company’s inventory management systems, digital products, digital network distribution system (DCS), enterprise resource planning system and website development costs, which are included in equipment, and are depreciated over three to five years . As of December 26, 2019 and December 27, 2018 , the Company had a net book value of $14.1 million and $17.4 million , respectively, of capitalized software and website development costs. Depreciation expense related to software and website development was approximately $8.4 million , $6.7 million and $6.0 million for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. The subtopics also require the capitalization of certain implementation costs related to qualifying Cloud Computing Arrangements (“CCAs”) upon adoption of ASU 2018-15— Intangibles - Goodwill and Other - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract as of September 28, 2018. As of December 26, 2019 and December 27, 2018 the Company had a gross and net book value of $0.6 million and $0.0 million of capitalized implementation costs for CCAs, respectively. These costs primarily relate to the Company's expected new hosted planning, proposal and inventory tracking system. These costs will be amortized to “Administrative and other costs” within the audited Consolidated Statements of Income over the life of the hosting arrangement beginning at implementation. For the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , the Company recorded $3.6 million , $1.7 million and $3.6 million in research and development expense, respectively. The Company assesses impairment of long-lived assets pursuant with ASC 360 – Property, Plant and Equipment. This includes determining if certain triggering events have occurred that could affect the value of an asset. The Company recorded losses of $0.2 million , $0.5 million and $0.1 million related to the write-off of property, plant and equipment during the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. These balances have been included within “Depreciation expense” within the respective audited Consolidated Statements of Income given the immaterial nature of the balances. Intangible Assets —Intangible assets consist of contractual rights to provide its services within the theaters of the founding members and network affiliates and are stated at cost, net of accumulated amortization. The Company records amortization using the straight-line method over the contractual life of the intangibles, corresponding to the term of the ESAs or the term of the contract with the network affiliate. Intangible assets are tested for impairment at least annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. In its impairment testing, the Company estimates the fair value of its ESAs or network affiliate agreements by determining the estimated future cash flows associated with the ESAs or network affiliate agreements. If after determining that gross cash flows are insufficient to recover the asset, the estimated fair value is less than the carrying value, the intangible asset is written down to its estimated fair value. Significant judgment is involved in estimating long-term cash flow forecasts. The Company recorded $ 0.1 million, $ 0.0 million and $ 0.0 million, respectively, in impairment charges related to intangible assets during the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 . These losses have been included within “Depreciation expense” within the respective audited Consolidated Statements of Income given the immaterial nature of the activity. The Company has elected to capitalize extension costs on its intangible assets and thus capitalized the legal and professional costs incurred in conjunction with the 2019 ESA Amendments. During the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , the Company capitalized $ 1.3 million , $ 0.0 million and $ 0.0 million, respectively within the intangible asset balance related to extension costs. Amounts Due to/from Founding Members —Amounts due to/from founding members include amounts due for the theater access fees and revenue share, offset by a receivable for advertising time purchased by the founding members on behalf of their beverage concessionaire, plus any amounts outstanding under other contractually obligated payments. Payments to or received from the founding members against outstanding balances are made monthly. Available cash distributions are made quarterly. Income Taxes —Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740 – Income Taxes . The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized, which will be assessed on an on-going basis. In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities. The Company follows ASC 740-10-25, which requires the use of a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. Only tax positions that meet the more likely than not recognition threshold are recognized. The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Debt Issuance Costs —In relation to the issuance of outstanding debt discussed in Note 10— Borrowings , there is a balance of $12.9 million and $12.8 million in deferred financing costs as of December 26, 2019 and December 27, 2018 , respectively. The debt issuance costs are being amortized on a straight-line basis over the terms of the underlying obligations and are included in interest on borrowings, which approximates the effective interest method. Debt issuance costs are written-off in the event that the underlying debt is extinguished through partial or full repayment of the obligation. The changes in debt issuance costs are as follows (in millions): Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Beginning balance $ 12.8 $ 10.0 $ 12.6 Debt issuance costs 4.6 6.4 — Amortization of debt issuance costs (2.6 ) (2.6 ) (2.6 ) Write-off of debt issuance costs (1.9 ) (1.0 ) — Ending balance $ 12.9 $ 12.8 $ 10.0 Share-Based Compensation —During 2019, the Company issued stock options, restricted stock and restricted stock units. Restricted stock and restricted stock units vest upon the achievement of Company three -year cumulative performance measures and service conditions or only service conditions. The Company recognizes share-based compensation net of an estimated forfeiture rate. Compensation expense of restricted stock that vests upon the achievement of Company performance measures is based on management’s financial projections and the probability of achieving the projections, which require considerable judgment. A cumulative adjustment is recorded to share-based compensation expense in periods that management changes its estimate of the number of shares expected to vest. Ultimately, the Company adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. Dividends are accrued when declared on unvested restricted stock that is expected to vest and are only paid with respect to shares that actually vest. Compensation cost of stock options is based on the estimated grant date fair value using the Black-Scholes option pricing model, which requires that the Company make estimates of various factors. Under the fair value recognition provisions of ASC 718 Compensation – Stock Compensation, the Company recognizes share-based compensation net of an estimated forfeiture rate, and therefore only recognizes compensation cost for those shares expected to vest over the requisite service period of the award. Refer to Note 11— Share-Based Compensation for more information. Fair Value Measurements —Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. Consolidation —NCM, Inc. consolidates the accounts of NCM LLC under the provisions of ASC 810, Consolidation (“ASC 810”). Under Accounting Standards Update 2015-2, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-2”), a limited partnership is a variable interest entity unless a simple majority or lower threshold of all limited partners unrelated to the general partner have kick-out or participating rights. The non-managing members of NCM LLC do not have dissolution rights or removal rights. NCM, Inc. has evaluated the provisions of the NCM LLC membership agreement and has concluded that the various rights of the non-managing members are not substantive participating rights under ASC 810, as they do not limit NCM, Inc.’s ability to make decisions in the ordinary course of business. As such, the Company concluded that NCM LLC is a variable interest entity and determined that NCM, Inc. should consolidate the accounts of NCM LLC pursuant to ASU 2015-2 because 1) it has the power to direct the activities of NCM LLC in its role as managing member and 2) NCM, Inc. has the obligation to absorb losses of, or the right to receive benefits from, NCM LLC that could potentially be significant provided its 48.8% ownership in NCM LLC. Prior to the prospective adoption of ASU 2015-2 in the first quarter of 2016, the Company reached the same conclusion under previous guidance in ASC 810 to consolidate NCM LLC. The following table presents the changes in NCM, Inc.’s equity resulting from net income attributable to NCM, Inc. and transfers to or from noncontrolling interests (in millions): Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Net income attributable to NCM, Inc. $ 36.1 $ 29.8 $ 58.3 NCM LLC equity issued for purchase of intangible asset 3.7 7.7 78.8 Income tax and other impacts of NCM LLC ownership changes (0.7 ) 7.0 28.6 NCM, Inc. investment in NCM LLC (1.7 ) — (84.9 ) Issuance of shares to founding members 1.7 — 84.7 Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests $ 39.1 $ 44.5 $ 165.5 Recently Adopted Accounting Pronouncements During the first quarter of 2019, the Company adopted Accounting Standards Update 2016-2 and subsequent amendments, Leases (Topic 842) (together “ASC 842”) utilizing the Comparatives Under 840 option where only the current period financial statements and related disclosures are presented in accordance with the new standard. As of the adoption date of December 28, 2018 the Company recognized the following on the audited Condensed Consolidated Balance Sheets: a right-of-use (“ROU”) asset of $ 21.7 million within “Other assets”, a short-term lease liability of $ 1.4 million within “Other current liabilities”, a long-term lease liability of $ 24.5 million within “Other liabilities” and reversed the related deferred rent liability balance of $ 4.2 million for all leases with terms longer than twelve months related to its building operating leases. The Company elected to utilize the following practical expedients: (i) not being required to separate lease and non-lease components when accounting for the lease for all asset classes; and (ii) not accounting for short-term leases under the new standard. The Company also determined that the ESAs and affiliate agreements are considered leases under ASC 842. However, the identification of the asset and determination of the period of control is dependent upon the scheduling of the showtimes by the exhibitors. As the schedules are typically not determined until one week in advance of the showtime, on average, the leases are considered short term in nature, specifically less than one month. As such, no ROU assets or lease liabilities were recognized for these agreements. The issuance of NCM LLC membership units to the founding members in accordance with NCM LLC’s Common Unit Adjustment Agreement and upfront cash payments to affiliates for the contractual rights to provide services within their theaters will continue to be classified as intangible assets. However, the amortization of these intangible assets is now considered lease expense and has been reclassified within the current period from “Depreciation and amortization expense” to “Amortization of intangibles recorded for network theater screen leases” on the audited Consolidated Statement of Income. Additionally, these upfront cash payments to affiliates and receipt of integration payments from the founding members, as defined within Note 5— Intangible Assets , will be considered cash flows from operating activities on the audited Consolidated Statement of Cash Flows when incurred as they are related to operating leases and will be reclassified from cash flows from investing and financing activities, respectively. The Company has also incorporated additional disclosures in Note 13— Commitments and Contingencies to comply with ASC 842. During the first quarter of 2019, the Company adopted Accounting Standards Update 2018-7, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-7”), which amends Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The adoption of ASU 2018-7 had an immaterial impact on the audited Condensed Consolidated Financial statements or notes thereto. During the fourth quarter of 2018, the Company adopted a final rule issued by the SEC amending certain disclosure requirements deemed by the SEC to be redundant, duplicative, overlapping, outdated or superseded. The rule also added requirements to disclose (1) the changes in each caption of stockholders’ equity and non-controlling interests for the current and comparative year-to-date periods, with subtotals for each interim period and (2) the amount of dividends per share for each class of shares. The Company's adoption of the guidance resulted in changes to the presentation of the audited Consolidated Statement of Equity as a quarter to date equity rollforward is now also required for the current and comparable period. The Company implemented the amended disclosure requirements in the first quarter of 2019. The codification was updated to reflect the aforementioned SEC changes within Accounting Standards Update 2019-7, Codification Updates to SEC Sections ("ASU 2019-7") issued and effective during the third quarter of 2019. Recently Issued Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements (“ASU 2016-13”), which requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted and is to be adopted on a modified retrospective basis. Upon the adoption of ASU 2016-13 on December 27, 2019, the Company expects to record a cumulative-effect adjustment related to the change in methodology surrounding the historical losses utilized in the calculation of the allowance for credit losses related to trade and unbilled accounts receivable. The Company is still evaluating the amount of adjustment. The Company will incorporate additional disclosures in its notes to its Consolidated Financial Statements to comply with ASU 2016-13 effective in the first quarter of 2020. The Company has designed and implemented changes to certain processes and internal controls related to its adoption of ASU 2016-13. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with partial early adoption permitted for eliminated disclosures. The method of adoption varies by the disclosure. Upon the adoption of ASU 2018-13 on December 27, 2019, the Company expects no changes to the Company's fair value disclosures as none of the changes within ASU 2018-13 were applicable to the Company. In December 2019, the FASB issued Accounting Standards Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which removes the following exceptions for the Company to analyze in a given period; the exception to the incremental approach for intraperiod tax allocation; the exception to accounting for basis differences when there are ownership changes in foreign investments; and the exception in interim periods income tax accounting for year-to-date losses that exceed anticipated losses. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact that adopting this guidance will have on the audited Consolidated Financial Statements or notes thereto. The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its audited Consolidated Financial Statements or notes thereto. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 26, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition The Company derives revenue principally from the sale of advertising to national, regional and local businesses in Noovie , our cinema advertising and entertainment pre-show seen on movie screens across the U.S., as well as on our LEN, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theater lobbies. We also sell digital online and mobile advertising through our Cinema Accelerator product and across our suite of Noovie digital properties, including Noovie.com, Noovie Shuffle, Name That Movie, Noovie Arcade, and Fantasy Movie League , in order to reach entertainment audiences beyond the theater. The Company also has a long-term agreement to exhibit the advertising of the founding members’ beverage suppliers. National and regional advertising, including advertising under the beverage concessionaire and PSA agreements, are sold on a CPM basis. The Company recognizes national and regional advertising over time as impressions (or theater attendees) are delivered. National advertising is also sold to content partners. The content partners provide the Company with original entertainment content segments, typically 90 seconds in length, that are entertaining, informative, or educational in nature in the Noovie pre-show and they make commitments to buy a portion of the Company’s advertising inventory at a specified CPM. The Company recognizes revenue for the content segments ratably over time as the content segments air. Local advertising is sold on a per-screen, per-week basis and to a lesser extent on a CPM basis. The Company recognizes local on-screen advertising revenue over the period in which the advertising airs as dictated by the underlying sales contracts. When sold separately, LEN advertising and lobby promotions are sold based on length and breadth of the promotion. The Company recognizes revenue derived from lobby network and promotions over time when the advertising is displayed in theater lobbies. The Company sells online and mobile advertising on a CPM basis. The Company recognizes revenue from branded entertainment websites and mobile applications over time as the online or mobile impressions are served. Customer contracts often include multiple advertising services to reach the moviegoer at multiple points during a theater experience. The Company considers each of these advertising services to represent distinct performance obligations of the contract and allocates a portion of the transaction price to each service based upon the standalone selling price of the service, when available. When standalone selling prices are not available or not applicable given the nature of the customer, the Company allocates the transaction price based upon all information that is reasonably available and maximizes the use of observable inputs. Methods utilized include the adjusted market and expected cost-plus margin approaches. The Company enters into barter transactions that exchange advertising program time for products and services used principally for selling and marketing activities. The Company records barter transactions at the estimated fair value of the products and services received. Revenue for advertising barter transactions are recognized when advertising is provided, and products and services received are charged to expense when used. Revenue from barter transactions for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 was $1.8 million , $5.9 million and $0.8 million , respectively. Expense recorded from barter transactions for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 was $2.1 million , $5.0 million and $1.4 million , respectively. This expense is included within “Selling and marketing costs” on the respective audited Consolidated Statements of Income. The Company makes contractual guarantees to deliver a specified number of impressions to view the customers’ advertising. If the contracted number of impressions are not delivered, the Company will run additional advertising to deliver the contracted impressions at a later date. The deferred portion of the revenue associated with undelivered impressions is referred to as a make-good provision. In rare cases, the Company will make a cash refund of the portion of the contract related to the undelivered impressions. Given the limited history of cash settlements of the make-good provision, the Company recognizes revenue on the guaranteed contracts as the impressions are delivered and no reserve for variable consideration is recorded. The Company defers the revenue associated with the make-good until the advertising airs to the theater attendance specified in the advertising contract. The make-good provision is recorded within “Accrued expenses” on the audited Consolidated Balance Sheets. As of December 26, 2019 and December 27, 2018 , the Company had a make-good provision of $ 8.7 million and $ 8.0 million, respectively. The Company recognizes revenue as the performance obligation for the advertising services is satisfied. Invoices are generated following the processing of each revenue contract and payment is due from the customer within 30 days of the invoice date. Customers select to pay the invoice in full at the start of a contract or through equal monthly installments over the course of the contract. The Company records deferred revenue when cash payments are received, or invoices are issued, in advance of revenue being earned. Deferred revenue is classified as a current liability as it is expected to be earned within the next twelve months. The Company does not have any contracts with terms in excess of one year that are noncancelable as of December 26, 2019. Agreements with a duration less than one year are not included within this disclosure as the Company elected to use the practical expedient in ASC 606-10-50-14 for those contracts. In addition, other of the Company’s contracts longer than one year that are cancelable are not included within this disclosure. Disaggregation of Revenue The Company disaggregates revenue based upon the type of customer: national; local and regional; and beverage concessionaire. This method of disaggregation is in alignment with how revenue is reviewed by management and discussed with and historically disclosed to investors. The following table summarizes revenue from contracts with customers for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 : Years ended December 26, 2019 December 27, 2018 December 28, 2017 National advertising revenue $ 324.2 $ 312.0 $ 296.3 Local advertising revenue (1) 66.9 70.7 88.8 Regional advertising revenue (1) 24.7 27.3 11.1 Founding member advertising revenue from beverage concessionaire agreements 29.0 31.4 29.9 Total revenue $ 444.8 $ 441.4 $ 426.1 (1) The Company redesigned the local and regional sales teams at the end of 2017, resulting in a reallocation of sales team members and customers from the local team in 2017 to the regional team in 2018 which resulted in the large increase in regional advertising revenue and corresponding decrease in local advertising revenue from 2017 to 2018. Deferred Revenue and Unbilled Accounts Receivable The changes in deferred revenue for the year ended December 26, 2019 were as follows (in millions): Year ended December 26, 2019 Balance at beginning of year $ (7.3 ) Performance obligations satisfied 7.3 New contract liabilities (7.6 ) Balance at end of year $ (7.6 ) Unbilled accounts receivable is classified as a current asset as it is expected to be billed within the next twelve months. As of December 26, 2019 and December 27, 2018 , the Company had $8.0 million and $6.0 million , respectively, in unbilled accounts receivable, included within the accounts receivable balance. Practical Expedients and Exemptions The Company expenses sales commissions when incurred as the amortization period would have been one year or less. These costs are recorded within “Selling and marketing costs” in the audited Consolidated Statement of Income. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 26, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. EARNINGS PER SHARE Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding. Diluted earnings per share is computed on the basis of the weighted average number of common shares outstanding plus the effect of potentially dilutive common stock options, restricted stock, and exchangeable NCM LLC common units using the treasury stock method. The components of basic and diluted earnings per NCM, Inc. share are as follows: Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Net income attributable to NCM, Inc. (in millions) $ 36.1 $ 29.8 $ 58.3 Net income attributable to NCM, Inc. following conversion of dilutive membership units (net of estimated taxes of $0.0, $22.2 and $42.5) (in millions) $ 36.1 $ 58.0 $ 72.0 Weighted average shares outstanding: Basic 77,345,577 76,859,087 65,226,817 Add: Dilutive effect of stock options, restricted stock, and exchangeable NCM LLC common membership units 436,990 80,544,823 85,840,453 Diluted 77,782,567 157,403,910 151,067,270 Earnings per NCM, Inc. share: Basic $ 0.47 $ 0.39 $ 0.89 Diluted $ 0.46 $ 0.37 $ 0.48 The effect of the 81,450,384 exchangeable NCM LLC common membership units held by the founding members for the year ended December 26, 2019 was excluded from the calculation of diluted weighted average shares and earnings per NCM, Inc. share as it was antidilutive in that period. However, the diluted weighted average shares outstanding assumes the conversion of all founding member common units to NCM, Inc. shares for the years ended December 27, 2018 and December 28, 2017 because such effect was dilutive. Upon the conversion of all common units, all of consolidated NCM LLC net income would be attributable to NCM, Inc. and thus has been utilized as the numerator of the diluted EPS calculation. Consolidated NCM LLC net income has been tax effected utilizing NCM, Inc.’s effective tax rates of 44.1% and 75.6% for the years ended December 27, 2018 and December 28, 2017 , respectively. NCM LLC common membership units do not participate in dividends paid on NCM, Inc.’s common shares. In addition, there were 2,568,418 , 2,141,535 and 2,583,196 stock options and non-vested (restricted) shares for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively, excluded from the calculation as they were antidilutive, primarily because exercise prices associated with those shares were above the average market value. The Company’s non-vested (restricted) shares do not meet the definition of a participating security as the dividends will not be paid if the shares do not vest. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 26, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. PROPERTY AND EQUIPMENT The following is a summary of property and equipment, at cost less accumulated depreciation (in millions): As of December 26, 2019 December 27, 2018 Equipment, computer hardware and software $ 93.5 $ 90.8 Leasehold improvements 2.4 2.4 Less: Accumulated depreciation (70.7 ) (62.5 ) Subtotal 25.2 30.7 Construction in progress 8.0 2.9 Total property and equipment $ 33.2 $ 33.6 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 26, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. INTANGIBLE ASSETS The Company’s intangible assets consist of contractual rights to provide its services within the theaters of the founding members and network affiliates. The Company records amortization using the straight-line method over the contractual life of the intangibles, corresponding to the term of the ESAs or the term of the contract with the network affiliate. The Company’s intangible assets with the founding members are recorded at the fair market value of NCM, Inc.’s publicly traded stock as of the date on which the common membership units were issued. The NCM LLC common membership units are fully convertible into NCM, Inc.’s common stock. The Company also records intangible assets for upfront fees paid to network affiliates upon commencement of a network affiliate agreement. Pursuant to ASC 350-10— Intangibles—Goodwill and Other, the Company’s intangible assets have a finite useful life and the Company amortizes the assets over the remaining useful life corresponding with the ESAs or the term of the contract with the network affiliate. The Company extended the useful life of the intangible asset for Cinemark and Regal following the extension of the ESA term in conjunction with the 2019 ESA Amendments. There was no impact to the Payable to founding members under tax receivable agreement as the useful life of the intangible assets were not deemed to be extended for tax purposes and there were no changes made to the tax receivable agreements. Common Unit Adjustments— In accordance with NCM LLC’s Common Unit Adjustment Agreement with its founding members, on an annual basis NCM LLC determines the amount of common membership units to be issued to or returned by the founding members based on theater additions or dispositions during the previous year. In addition, NCM LLC’s Common Unit Adjustment Agreement requires that a Common Unit Adjustment occur for a specific founding member if its acquisition or disposition of theaters, in a single transaction or cumulatively since the most recent Common Unit Adjustment, results in an attendance increase or decrease in excess of two percent of the annual total attendance at the prior adjustment date. Integration Payments and Other Encumbered Theater Payments— If an existing on-screen advertising agreement with an alternative provider is in place with respect to any acquired theaters, the founding members may elect to receive common membership units related to those encumbered theaters in connection with the Common Unit Adjustment. If the founding members make this election, then they are required to make payments on a quarterly basis in arrears in accordance with certain run-out provisions pursuant to the ESAs (“integration payments”). Because the Carmike and Rave theaters are subject to an existing on-screen advertising agreement with an alternative provider, AMC and Cinemark will make integration payments to NCM LLC. The integration payments will continue until the earlier of (i) the date the theaters are transferred to NCM LLC’s network or (ii) the expiration of the ESA. Integration payments are calculated based upon the advertising cash flow that the Company would have generated if it had exclusive access to sell advertising in the theaters with pre-existing advertising agreements. The ESA additionally entitles NCM LLC to payments related to the founding members’ on-screen advertising commitments under their beverage concessionaire agreements for encumbered theaters (“encumbered theater payments”). These payments are also accounted for as a reduction to the intangible asset. If common membership units are issued to a founding member for newly acquired theaters that are subject to an existing on-screen advertising agreement with an alternative provider, the amortization of the intangible asset commences after the existing agreement expires and NCM LLC can utilize the theaters for all of its services. The following is a summary of the Company’s intangible asset’s activity (in millions) during 2019 and 2018 : As of December 27, 2018 Additions (1) Disposals (2) Amortization Integration and other encumbered theater payments (4) As of December 26, 2019 Gross carrying amount $ 857.2 $ 8.9 $ (1.2 ) $ — $ (22.3 ) $ 842.6 Accumulated amortization (172.7 ) — 0.5 (26.7 ) — (198.9 ) Total intangible assets, net $ 684.5 $ 8.9 $ (0.7 ) $ (26.7 ) $ (22.3 ) $ 643.7 As of December 28, 2017 Additions (3) Amortization Integration and other encumbered theater payments (4) As of December 27, 2018 Gross carrying amount $ 862.6 $ 16.0 $ — $ (21.4 ) $ 857.2 Accumulated amortization (145.4 ) — (27.3 ) — (172.7 ) Total intangible assets, net $ 717.2 $ 16.0 $ (27.3 ) $ (21.4 ) $ 684.5 (1) During the first quarter of 2019, NCM LLC issued 1,044,665 common membership units to its founding members for the rights to exclusive access to the theater screens and attendees added, net of dispositions by the founding members to NCM LLC’s network during the 2018 fiscal year and NCM LLC recorded a net intangible asset of $7.6 million during the first quarter of 2019 as a result of the Common Unit Adjustment. During the third quarter of 2019, the Company capitalized $1.3 million of legal and professional costs incurred in conjunction with the 2019 ESA Amendments which extended the useful life of the intangible asset for Cinemark and Regal. (2) During the second quarter of 2019, AMC purchased one of the Company's affiliates and the Company wrote off the related intangible asset balance and accumulated amortization. A portion of the net book balance was reimbursed by AMC. The acquired theaters will be included within the Common Unit Adjustment calculation for AMC in March of 2020. During the fourth quarter of 2019, one of the Company's affiliates closed. As such, the Company wrote off the related intangible asset balance and accumulated amortization. (3) During the first quarter of 2018, NCM LLC issued 2,821,710 ( 3,736,860 issued, net of 915,150 returned) common membership units to its founding members for the rights to exclusive access to net new theater screens and attendees added by the founding members to NCM LLC’s network during 2017 and NCM LLC recorded a net intangible asset of $15.9 million in the first quarter of 2018 as a result of these Common Unit Adjustments. During 2018, the Company purchased intangible assets for $0.1 million associated with network affiliate agreements. (4) Carmike and Rave Cinemas had pre-existing advertising agreements for some of the theaters it owned prior to their acquisitions by AMC and Cinemark. As a result, AMC and Cinemark will make integration and other encumbered theater payments over the remaining term of those agreements. During the years ended December 26, 2019 and December 27, 2018 , NCM LLC recorded a reduction to net intangible assets of $22.3 million and $21.4 million , respectively, related to integration and other encumbered theater payments due from AMC and Cinemark. During the year ended December 26, 2019 and December 27, 2018 , AMC and Cinemark paid a total of $21.7 million and $22.7 million , respectively, related to integration and other encumbered theater payments. As of December 26, 2019 and December 27, 2018 , the Company’s intangible assets related to the founding members, net of accumulated amortization, was $620.5 million and $657.5 million , respectively, with weighted average remaining lives of 20.0 years and 18.2 years , respectively. As of December 26, 2019 and December 27, 2018 , the Company’s intangible assets related to the network affiliates, net of accumulated amortization, was $23.1 million and $26.9 million , respectively, with weighted average remaining lives of 5.4 years and 10.0 years , respectively. As of December 26, 2019 and December 27, 2018 , the Company’s intangible assets related to acquired software, net of accumulated amortization, was $0.1 million and $0.1 million , respectively, with weighted average remaining lives of 0.5 years and 1.5 years , respectively. The estimated aggregate amortization expense for each of the five succeeding years is as follows (in millions |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 26, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 6. ACCRUED EXPENSES The following is a summary of the Company’s accrued expenses (in millions): As of December 26, 2019 December 27, 2018 Make-good reserve $ 8.7 $ 8.0 Accrued interest 11.4 10.3 Deferred rent — 0.2 Other accrued expenses 2.0 3.2 Total accrued expenses $ 22.1 $ 21.7 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES The Company is subject to taxation in the U.S. and various states. The Company’s tax returns for the calendar years 2016 through 2018 remain open to examination by the IRS in their entirety. With respect to state taxing jurisdictions, the Company’s tax returns for calendar years ended 2015 through 2018 are eligible for examination by various state revenue services. Tax Receivable Agreement —On the IPO date, NCM, Inc. and the founding members entered into a TRA. Under the terms of this agreement, NCM, Inc. will make cash payments to the founding members in amounts equal to 90% of NCM, Inc.’s actual tax benefit realized from the tax amortization of the intangible assets described below. For purposes of the TRA, cash savings in income and franchise tax will be computed by comparing NCM, Inc.’s actual income and franchise tax liability to the amount of such taxes that NCM, Inc. would have been required to pay had there been no increase in NCM, Inc.’s proportionate share of tax basis in NCM LLC’s tangible and intangible assets and had the TRA not been entered into. The TRA applies to NCM, Inc.’s taxable years up to and including the 30t h anniversary date of the offering. The Company paid the founding members $14.8 million in 2019 for the 2018 tax year, $18.4 million in 2018 for the 2017 tax year and $18.8 million in 2017 for the 2016 tax year. NCM, Inc. recorded a long-term payable to founding members related to the TRA. Changes in the tax rate each period led to a re-measurement of the payable resulting in an increase of $1.1 million during the year ended December 26, 2019 and decreases of $3.8 million and $192.2 million during the years ended December 27, 2018 and December 28, 2017 , respectively. The decrease of $192.2 million during the year ended December 28, 2017 was related to Tax Reform, as described further below. Provision for Income Taxes —The Company has provided total income taxes, as follows (in millions) Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Current: Federal $ — $ (0.3 ) $ (1.6 ) State 0.3 0.5 — Total current income tax (benefit)/expense 0.3 0.2 (1.6 ) Deferred: Federal 10.0 13.2 142.1 State 2.1 10.1 39.8 Total deferred income tax expense 12.1 23.3 181.9 Total income tax provision on Consolidated Statements of Income $ 12.4 $ 23.5 $ 180.3 A reconciliation of the provision for income taxes as reported and the amount computed by multiplying income before taxes, less noncontrolling interest, by the U.S. federal statutory rate of 21.0% as of December 26, 2019 and December 27, 2018 and 35.0% as of December 28, 2017 was (in millions): Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Provision calculated at federal statutory income tax rate: Income before income taxes $ 20.8 $ 21.8 $ 102.6 Less: Noncontrolling interests (10.6 ) (10.6 ) (19.7 ) Income attributable to NCM, Inc. 10.2 11.2 82.9 Current year change to enacted federal and state rate (1) (0.7 ) 6.5 92.2 State and local income taxes, net of federal benefit 1.7 2.6 8.7 NCM LLC income taxes 0.2 0.4 0.2 Share-based compensation 0.3 1.1 0.8 Uncertain tax positions (2) — (0.4 ) (1.7 ) Change in the valuation allowance 0.9 0.5 (4.2 ) NCM LLC membership unit issuance to NCM, Inc. 0.2 0.2 0.5 Executive compensation 0.4 1.4 0.4 Other (0.8 ) — 0.5 Total income tax provision $ 12.4 $ 23.5 $ 180.3 (1) Refer to the discussion of the impact of the Tax Act within the ‘Tax Reform’ section below. (2) During the year ended December 31, 2015, the Company established a reserve for material, known tax exposures of $4.9 million , including accrued interest and penalties. The reserve related to tax exposures from prior periods (2010 through 2014). During the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 the Company reversed approximately $0.0 million of its reserve, $0.4 million of its reserve ( $0.3 million of income tax benefits and $0.1 million of accrued interest and penalties) and $1.7 million ( $1.3 million of income tax benefits and $0.4 million of accrued interest and penalties), respectively, because the statute of limitations expired. Deferred Tax Assets —Significant components of the Company’s deferred tax assets consisted of the following (in millions): Years Ended December 26, 2019 December 27, 2018 Deferred tax assets: Investment in consolidated subsidiary NCM LLC (1) $ 218.9 $ 233.5 Share-based compensation 3.0 3.0 Net operating losses 19.2 15.8 Accrued bonus 0.4 0.5 Other 2.2 1.2 Total gross deferred tax assets 243.7 254.0 Valuation allowance (1) (81.6 ) (80.1 ) Total deferred tax assets, net of valuation allowance $ 162.1 $ 173.9 (1) The Company recognized a deferred tax asset in the amount of $ 218.9 million and $ 233.5 million as of 2019 and 2018, respectively, associated with the basis difference in our investment in NCM LLC. However, a portion of the total basis difference will only reverse upon a sale of the Company’s interest in NCM LLC, which the Company expects would result in a capital loss for which no offsetting capital gain is expected. Therefore, as of December 26, 2019 and December 27, 2018 the Company has a valuation allowance in the amount of $ 80.6 million and $ 80.1 million, respectively, against the deferred tax asset to which this portion relates. The change in this portion of the valuation allowance from December 27, 2018 to December 26, 2019 was primarily driven by outside basis differences which do not impact tax expense and thus are not reflected within the rate reconciliation presented above. Tax Reform —On December 22, 2017, the U.S. government enacted the Tax Act which makes broad and complex changes to the U.S. tax code that affected the Company’s fiscal year ending December 27, 2018, including, but not limited to, (1) reducing the U.S. federal corporate tax rate, (2) allowing full expensing of qualified property, (3) creating a new limitation on deductible interest expense; (4) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017, and (5) limiting the amount of compensation that can be deducted for highly compensated officers by terminating the exclusion of performance-based compensation from the $1 million per employee, per year limitation. The decrease in the U.S. federal corporate tax rate decreased NCM, Inc.’s blended state and federal rate from 38.58% during the year ended December 28, 2017 to 25.38% during the year ended December 27, 2018. The Company recorded a $191.0 million reduction to the ‘Payable to founding members under the TRA’ related to the reduction of the U.S. federal corporate tax rate. The reduction was recorded as a gain of $191.0 million within non-operating income within the Consolidated Statements of Income. Additionally, the Company revalued its deferred balances utilizing the lower blended state and federal rate resulting in a reduction of the net deferred tax asset of $92.2 million . The reduction of the net deferred tax asset was recorded as an increase in deferred tax expense. The payments to the founding members under the TRA during 2019, decreased $8.0 million due to the decrease in the U.S. federal corporate tax rate under the Tax Act. Carryforwards —As of December 26, 2019 , the Company had gross federal net operating loss carryforwards of approximately $72.2 million , of which $47.0 million will expire between 2034 through 2037 and $25.2 million will be carried forward indefinitely. As of December 26, 2019 , the Company had gross state net operating loss carryforwards of approximately $79.7 million , of which $71.3 million will expire between 2022 and 2039 and $8.4 million will be carried forward indefinitely. As of December 26 2019, the Company had gross capital loss carryforwards of approximately $0.1 million, which will expire in 2024. As of December 26, 2019, the Company had gross federal and state research and experimentation tax credit carryforwards of approximately $1.5 million , which expire at various dates between 2030 and 2039 . |
Equity
Equity | 12 Months Ended |
Dec. 26, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity | 8. EQUITY As of December 26, 2019 , the Company has authorized capital stock of 175,000,000 shares of common stock, par value of $0.01 per share, and 10,000,000 shares of preferred stock, par value of $0.01 per share. There were no shares of preferred stock issued or outstanding as of December 26, 2019 . There were 77,568,986 shares of common stock issued and outstanding as of December 26, 2019 . The holders of NCM, Inc. common stock are entitled to one vote per share on all matters submitted for action by the NCM, Inc. stockholders. Holders of common stock are entitled to share equally, share for share, in declared dividends. The authorized but unissued shares of common stock and preferred stock are available for future issuance without stockholder approval. These additional shares may be used for a variety of corporate purposes, including share based compensation, future public offerings to raise additional capital, corporate acquisitions and exchange on a one-for-one basis under the founding members’ right to convert their NCM LLC membership units into Company common stock. NCM LLC’s founding members received all proceeds from NCM, Inc.’s IPO and related issuances of debt, except for amounts needed to pay out-of-pocket costs of the financings and other expenses. The ESAs with the founding members were amended and restated in conjunction with the IPO under which NCM LLC became the exclusive provider of advertising services to the founding members for a 30 -year term. In conformity with accounting guidance of the SEC concerning monetary consideration paid to promoters, such as the founding members, in exchange for property conveyed by the promoters, the excess over predecessor cost was treated as a special distribution. Because the founding members had no cost basis in the ESAs, nearly all payments to the founding members with the proceeds of the IPO and related debt, have been accounted for as distributions. The distributions by NCM LLC to the founding members made at the date of the IPO resulted in a consolidated stockholders’ deficit. As a noncontrolling interest cannot be shown as an asset, the founding members’ interest in NCM LLC’s members equity is included in distributions in excess of paid in capital in the accompanying Consolidated Balance Sheets. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 26, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. RELATED PARTY TRANSACTIONS Founding Member Transactions —In connection with NCM, Inc.’s IPO, the Company entered into several agreements to define and regulate the relationships among NCM, Inc., NCM LLC and the founding members which are outlined below. As AMC owns less than 5% of NCM LLC as of December 26, 2019 , AMC is no longer a related party. AMC remains a party to the ESA, Common Unit Adjustment Agreement, TRA and certain other original agreements, and AMC will continue to participate in the annual Common Unit Adjustment, receive TRA payments, receive theater access fee payments, and make payments under the beverage concessionaire agreements, among other things. AMC is not currently a member under the terms of the NCM LLC Operating Agreement and will not receive available cash distributions or allocation of earnings and losses in NCM LLC, unless it receives NCM LLC membership units pursuant to a Common Unit Adjustment. Further, AMC's ownership percentage does not impact future integration payments and other encumbered theater payments owed to NCM LLC by AMC. AMC is considered a related party through the date it fell below the 5% ownership threshold (July 5, 2018) and related party transactions with AMC through this period are included within the disclosures below (specifically the first six months of 2018 and all of 2017). The material agreements with the founding members are as follows: • ESAs. Under the ESAs, NCM LLC is the exclusive provider within the United States of advertising services in the founding members’ theaters (subject to pre-existing contractual obligations and other limited exceptions for the benefit of the founding members). The advertising services include the use of the DCN equipment required to deliver the on-screen advertising and other content included in the Noovie pre-show, use of the LEN and rights to sell and display certain lobby promotions. Further, 30 to 60 seconds of advertising included in the Noovie pre-show is sold to the founding members to satisfy the founding members’ on-screen advertising commitments under their beverage concessionaire agreements. In consideration for access to the founding members’ theaters, theater patrons, the network equipment required to display on-screen and LEN video advertising and the use of theaters for lobby promotions, the founding members receive a monthly theater access fee. In conjunction with the 2019 ESA Amendments, NCM LLC also pays Cinemark and Regal incremental monthly theater access fees and, subject to NCM LLC's use of specified inventory, a revenue share in consideration for NCM LLC's access to certain on-screen advertising inventory after the advertised showtime of a feature film beginning November 1, 2019 and the underlying term of the ESAs were extended until 2041. The ESAs and 2019 ESA Amendments are considered leases with related parties under ASC 842. • Common Unit Adjustment Agreement. The common unit adjustment agreement provides a mechanism for increasing or decreasing the membership units held by the founding members based on the acquisition or construction of new theaters or sale of theaters that are operated by each founding member and included in NCM LLC’s network. • Tax Receivable Agreement. The TRA provides for the effective payment by NCM, Inc. to the founding members of 90% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that is actually realized as a result of certain increases in NCM, Inc.’s proportionate share of tax basis in NCM LLC’s tangible and intangible assets resulting from the IPO and related transactions. • Software License Agreement. At the date of the Company’s IPO, NCM LLC was granted a perpetual, royalty-free license from the founding members to use certain proprietary software that existed at the time for the delivery of digital advertising and other content through the DCN to screens in the U.S. NCM LLC has made improvements to this software since the IPO date and NCM LLC owns those improvements, except for improvements that were developed jointly by NCM LLC and the founding members, if any. Following is a summary of the related party transactions between the Company and the founding members (in millions): Years Ended Included in the Consolidated Statements of Income: (1) December 26, 2019 December 27, 2018 December 28, 2017 Revenue: Beverage concessionaire revenue (included in advertising revenue) (2) $ 23.0 $ 28.4 $ 29.9 Operating expenses: Theater access fee and revenue share (3) 56.6 69.0 76.5 Purchase of movie tickets and concession products and rental of theater space (included in selling and marketing costs) (4) 0.4 1.1 2.1 Purchase of movie tickets and concession products and rental of theater space (included in advertising operating costs) 0.1 0.1 0.1 Non-operating expenses: Interest income from notes receivable (included in interest income) (5) 0.2 0.3 0.6 (1) AMC is no longer considered a related party as of July 5, 2018, as described further above. As such, the figures within the table above only include related party activity with AMC for the first six months of 2018 and the year ended December 28, 2017. (2) For the full years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , two of the founding members purchased 60 seconds of on-screen advertising time and one founding member purchased 30 seconds (with all three founding members having a right to purchase up to 90 seconds ) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a 30 second equivalent CPM rate specified by the ESA. (3) Comprised of payments per theater attendee, payments per digital screen with respect to the founding member theaters included in the Company’s network, payments for access to higher quality digital cinema equipment and payments to Cinemark and Regal for their portion of the Platinum Spot revenue for the utilization of the theaters post-showtime in accordance with the 2019 ESA Amendments. (4) Used primarily for marketing to NCM LLC’s advertising clients. (5) Refer to the discussion of the Fathom Events sale under AC JV, LLC transactions below. As of Included in the Consolidated Balance Sheets: December 26, 2019 December 27, 2018 Current portion of note receivable (1) (2) $ — $ 4.2 Interest receivable on notes receivable (included in other current assets) (2) — 0.1 Common unit adjustments, net of amortization and integration payments (included in intangible assets) (3) 620.5 657.5 Current payable to founding members under the TRA (1) (4) 10.3 11.2 Long-term payable to founding members under the TRA (1) (4) 133.5 141.1 (1) AMC is no longer considered a related party as of July 5, 2018, as described further above. As such, the figures within the table above do not include AMC. (2) Refer to the discussion of the Fathom Events sale under AC JV, LLC transactions below. (3) Refer to Note 5— Intangible Assets for further information on common unit adjustments and integration payments. (4) The Company paid Cinemark and Regal $3.7 million and $6.7 million , respectively, in payments pursuant to the TRA during 2019 which was for the 2018 tax year. The Company paid AMC, Cinemark and Regal $5.4 million , $4.6 million and $8.4 million , respectively, in payments pursuant to the TRA during 2018 which was for the 2017 tax year. As AMC is no longer considered a related party as of July 5, 2018, the AMC TRA payment includes only related party activity with AMC for the six months ended June 28, 2018. At the date of the Company’s IPO, NCM LLC was granted a perpetual, royalty-free license from the founding members to use certain proprietary software that existed at the time for the delivery of digital advertising and other content through the DCN to screens in the U.S. NCM LLC has made improvements to this software since the IPO date and NCM LLC owns those improvements, except for improvements that were developed jointly by NCM LLC and the founding members, if any. Pursuant to the terms of the NCM LLC Operating Agreement in place since the completion of the IPO, NCM LLC is required to make mandatory distributions on a proportionate basis to its members of available cash, as defined in the NCM LLC Operating Agreement, on a quarterly basis in arrears. Mandatory distributions for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 are as shown within the table below (in millions). The amount presented within the tables for the distribution paid to AMC for the year ended December 27, 2018 represents only the distribution for the three months ended March 29, 2018 to AMC. AMC’s distribution for the three months ended June 28, 2018 was paid to Cinemark and Regal to accommodate agreements between AMC and each of Cinemark and Regal related to the sale. Further, there was no distribution shown to AMC for the year ended December 26, 2019 or the last six months of 2018 as they were no longer a related party. Years Ended December 26, 2019 December 27, 2018 December 28, 2017 AMC $ — $ 2.2 $ 27.1 Cinemark 37.2 34.3 29.1 Regal 39.1 35.8 28.8 Total founding members 76.3 72.3 85.0 NCM, Inc. 72.5 69.1 75.9 Total $ 148.8 $ 141.4 $ 160.9 The mandatory distributions of available cash by NCM LLC to its founding members for the quarter ended December 26, 2019 of $32.4 million , is included in amounts due to founding members in the Consolidated Balance Sheets as of December 26, 2019 and will be made in the first quarter of 2020. The distributions to NCM, Inc. are eliminated in consolidation. Amounts due to founding members, net as of December 26, 2019 were comprised of the following (in millions): Cinemark Regal Total Theater access fees and revenue share, net of beverage revenues and other encumbered theater payments $ 2.0 $ 2.5 $ 4.5 Distributions payable to founding members 15.8 16.6 32.4 Integration payments due from founding members (0.1 ) — (0.1 ) Total amounts due to founding members, net $ 17.7 $ 19.1 $ 36.8 Amounts due to founding members, net as of December 27, 2018 were comprised of the following (in millions): Cinemark Regal Total Theater access fees, net of beverage revenues and other encumbered theater payments $ 1.0 $ 1.5 $ 2.5 Distributions payable to founding members 13.7 14.2 27.9 Integration payments due from founding members (0.4 ) — (0.4 ) Total amounts due to founding members, net $ 14.3 $ 15.7 $ 30.0 Common Unit Membership Redemption and AMC Mandatory Ownership Divestitures — The NCM LLC Operating Agreement provides a redemption right of the founding members to exchange common membership units of NCM LLC for shares of the Company’s common stock on a one -for-one basis, or at the Company’s option, a cash payment based on the three -day variable weighted average closing price of NCM, Inc.’s common stock prior to the redemption date. During the year ended December 28, 2017 , AMC exercised the redemption right of an aggregate 15.6 million common membership units for a like number of shares of NCM, Inc.’s common stock. Pursuant to ASC 810-10-45, the Company accounted for the changes in its ownership interest in NCM LLC as equity transactions whereby, the issuance of shares of NCM, Inc. common stock were offset by the purchase of NCM LLC’s (a subsidiary’s) equity within the Consolidated Statement of Equity. Further, no gain or loss was recognized in the Consolidated Statements of Income. During the six months ended June 28, 2018 and the year ended December 28, 2017 , AMC sold 1.0 million and 14.8 million shares of NCM, Inc., respectively. The Company did not receive any proceeds from the sale of its common stock by AMC. During the six months ended June 28, 2018 and the year ended December 28, 2017 , AMC received cash dividends of approximately $0.3 million and $0.1 million , respectively, on its shares of NCM, Inc. common stock. AMC sold 21,477,480 NCM LLC membership units to Cinemark and Regal in July 2018. Network Affiliate Transactions —NCM LLC paid a network affiliate owned by a family member of a director on the Company's Board of Directors $0.6 million , $0.5 million , and $0.5 million in circuit share payments during the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. AC JV, LLC Transactions —In December 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (“AC JV, LLC”) owned 32% by each of the founding members and 4% by NCM LLC. In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member). The notes receivable bear interest at a fixed rate of 5.0% per annum, compounded annually. Interest and principal payments were due annually in six equal installments commencing on the first anniversary of the closing and ending on December 26, 2019. NCM LLC’s investment in AC JV, LLC was $0.9 million and $0.9 million as of December 26, 2019 and December 27, 2018 , respectively. The Company accounts for its investment in AC JV, LLC under the equity method of accounting in accordance with ASC 323-30 , Investments—Equity Method and Joint Ventures (“ASC 323-30”) because AC JV, LLC is a limited liability company with the characteristics of a limited partnership and ASC 323-30 requires the use of equity method accounting unless the Company’s interest is so minor that it would have virtually no influence over partnership operating and financial policies. Although NCM LLC does not have a representative on AC JV, LLC’s Board of Directors or any voting, consent or blocking rights with respect to the governance or operations of AC JV, LLC, the Company concluded that its interest was more than minor. During the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , NCM LLC received cash distributions from AC JV, LLC of $0.4 million , $0.2 million and $0.3 million , respectively. NCM LLC recorded equity in earnings for AC JV, LLC of $0.4 million , $0.2 million and $0.3 million during the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively, which are included in “Other non-operating income” in the audited Consolidated Statements of Income. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 26, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | 10. BORROWINGS The following table summarizes NCM LLC’s total outstanding debt as of December 26, 2019 and December 27, 2018 and the significant terms of its borrowing arrangements: Outstanding Balance as of Borrowings ($ in millions) December 26, 2019 December 27, 2018 Maturity Date Interest Rate Senior secured notes due 2022 $ — $ 400.0 April 15, 2022 6.000% Revolving credit facility 39.0 27.0 June 20, 2023 (1) Term loans 266.6 269.4 June 20, 2025 (1) Senior unsecured notes due 2026 230.0 235.0 August 15, 2026 5.750% Senior secured notes due 2028 400.0 — April 15, 2028 5.875% Total borrowings 935.6 931.4 Less: Debt issuance costs related to term loans and senior notes (9.0 ) (7.8 ) Total borrowings, net 926.6 923.6 Less: current portion of debt (2.7 ) (2.7 ) Carrying value of long-term debt $ 923.9 $ 920.9 (1) The interest rates on the revolving credit facility and term loan are described below. Senior Secured Credit Facility —On June 20, 2018, NCM LLC entered into a credit agreement to replace NCM LLC's previous senior secured credit facility, dated as of February 13, 2007, as amended (the "previous facility"). Consistent with the structure of the previous facility, the new agreement consists of a term loan facility and a revolving credit facility. As of December 26, 2019 , NCM LLC’s new senior secured credit facility consisted of a $175.0 million revolving credit facility and a $266.6 million term loan. The obligations under the senior secured credit facility are secured by a lien on substantially all of the assets of NCM LLC. During the second quarter of 2018, the Company capitalized approximately $6.5 million of debt issuance costs related to the new revolving credit facility and the term loan. The Company also recognized $1.2 million in non-operating loss related to the write-off of capitalized debt issuance costs related to the previous facility and recognition of debt issuance costs that did not qualify for capitalization. Revolving Credit Facility —The revolving credit facility portion of NCM LLC’s total borrowings is available, subject to certain conditions, for general corporate purposes of NCM LLC in the ordinary course of business and for other transactions permitted under the senior secured credit facility, and a portion is available for letters of credit. As of December 26, 2019 , NCM LLC’s total availability under the $175.0 million revolving credit facility was $132.4 million, net of $39.0 million outstanding and $3.6 million letters of credit. The unused line fee is 0.50% per annum which is consistent with the previous facility. Borrowings under the revolving credit facility bear interest at NCM LLC’s option of either the LIBOR index plus an applicable margin ranging from 1.75% to 2.25% or the base rate plus an applicable margin ranging from 0.75% to 1.25% . The margin changed to the aforementioned range from a fixed margin of LIBOR index plus 2.00% or the base rate plus 1.00% . The applicable margin for the revolving credit facility is determined quarterly and is subject to adjustment based upon a consolidated net senior secured leverage ratio for NCM LLC (the ratio of secured funded debt less unrestricted cash and cash equivalents of up to $100.0 million , divided by Adjusted EBITDA for debt purposes, defined as NCM LLC's net income before depreciation and amortization expense adjusted to also exclude non-cash share based compensation costs for NCM LLC plus integration payments received). The revolving credit facility will mature on June 20, 2023. The weighted-average interest rate on the outstanding balance on the revolving credit facility as of December 26, 2019 was 4.37% . Term Loans —The interest rate on the term loans is a rate chosen at NCM LLC’s option of either the LIBOR index plus 3.00% or the base rate plus 2.00% . The rate increased from LIBOR index plus 2.75% or the base rate plus 1.75% . The weighted-average interest rate on the term loans as of December 26, 2019 was 4.75% . The term loan amortizes at a rate equal to 1.00% annually, to be paid in equal quarterly installments. As of December 26, 2019 , NCM LLC has paid a principal of $3.4 million , reducing the outstanding balance to $266.6 million. The term loan will mature on June 20, 2025. The senior secured credit facility contains a number of covenants and financial ratio requirements, including (i) a consolidated net total leverage ratio covenant of 6.25 times for each for each quarterly period and (ii) with respect to the revolving credit facility, maintaining a consolidated net senior secured leverage ratio of equal to or less than 4.50 times on a quarterly basis for each quarterly period in which a balance is outstanding on the revolving credit facility. In addition, NCM LLC is permitted to make quarterly dividend payments and other restricted payments with its available cash as long as NCM LLC's consolidated net senior secured leverage ratio (after giving effect to any such payment) is below 5.50 times and no default or event of has occurred and continues to occur under the senior secured credit facility. As of December 26, 2019 , the NCM LLC’s consolidated net senior secured leverage ratio was 3.00 times (versus the dividend payment restriction of 5.50 times and the covenant of 4.50 times) and NCM LLC's consolidated net total leverage ratio was 4.00 times (versus the covenant of 6.25 times). Senior Secured Notes due 2022 —On April 27, 2012, NCM LLC completed a private placement of $400.0 million in aggregate principal amount of 6.00% Senior Secured Notes (the “Notes due 2022”). The Notes due 2022 pay interest semi-annually in arrears on April 15 and October 15 of each year, which commenced October 15, 2012. The Notes due 2022 were issued at 100% of the face amount thereof and are senior secured obligations of NCM LLC, rank the same as NCM LLC’s senior secured credit facility, subject to certain exceptions, and share in the same collateral that secures NCM LLC’s obligations under the senior secured credit facility. On November 7, 2019, NCM LLC redeemed the entire $400.0 million aggregate principal amount of NCM LLC’s existing Notes due 2022. The redemption price for the Notes due 2022 was 101.000% of the principal amount thereof plus accrued and unpaid interest. As a result of the redemption, NCM LLC wrote-off approximately $1.9 million in unamortized debt issuance costs and paid a redemption premium of approximately $4.0 million , which are reflected in the loss on early retirement of debt, net on the Consolidated Statements of Income during the year ended December 26, 2019. Senior Unsecured Notes due 2026 —On August 19, 2016, NCM LLC completed a private placement of $250.0 million in aggregate principal amount of 5.750% Senior Unsecured Notes due 2026 (the “Notes due 2026”) for which the registered exchange offering was completed on November 8, 2016. The Notes due 2026 pay interest semi-annually in arrears on February 15 and August 15 of each year, which commenced on February 15, 2017. The Notes due 2026 were issued at 100% of the face amount thereof and are the senior unsecured obligations of NCM LLC and will be effectively subordinated to all existing and future secured debt, including the Notes due 2028, its senior secured credit facility and any future asset backed loan facility. The Notes due 2026 will rank equally in right of payment with all of NCM LLC’s existing and future senior indebtedness, including the Notes due 2028, NCM LLC’s existing senior secured credit facility, any future asset backed loan facility, in each case, without giving effect to collateral arrangements. The Notes due 2026 will be effectively subordinated to all liabilities of any subsidiaries that NCM LLC may form or acquire in the future, unless those subsidiaries become guarantors of the Notes due 2026. NCM LLC does not currently have any subsidiaries, and the Notes due 2026 will not be guaranteed by any subsidiaries that NCM LLC may form or acquire in the future except in very limited circumstances. During the years ended December 26, 2019 and December 27, 2018 , NCM LLC repurchased and canceled a total of $5.0 million and $ 15.0 million of the Notes due 2026, respectively, reducing the principal amount to $230.0 million as of December 26, 2019 . This repurchase was treated as a partial debt extinguishment and resulted in the realization of a non-operating gain, net of written off debt issuance costs, of $0.3 million and $ 0.6 million during the years ended December 26, 2019 and December 27, 2018 , respectively. NCM LLC may redeem all or any portion of the Notes due 2026 prior to August 15, 2021, at once or over time, at 100% of the principal amount plus the applicable make-whole premium, plus accrued and unpaid interest, if any, to the redemption date. NCM LLC may redeem all or any portion of the Notes due 2026, at once or over time, on or after August 15, 2021 at specified redemption prices, plus accrued and unpaid interest, if any, to the redemption date. In addition, at any time prior to August 15, 2019, NCM LLC may on any one or more occasions redeem up to 35% of the original aggregate principal amount of Notes due 2026 from the net proceeds of certain equity offerings at a redemption price equal to 105.750% of the principal amount of the Notes due 2026 redeemed, plus accrued and unpaid interest, if any to the redemption date. Upon the occurrence of a Change of Control (as defined in the indenture), NCM LLC will be required to make an offer to each holder of the Notes due 2026 to repurchase all of such holder’s Notes due 2026 for a cash payment equal to 101.000% of the aggregate principal amount of the Notes due 2026 repurchased, plus accrued and unpaid interest, if any, to the date of repurchase. The indenture contains covenants that, among other things, restrict NCM LLC’s ability and the ability of its restricted subsidiaries, if any, to: (1) incur additional debt; (2) make distributions or make certain other restricted payments; (3) make investments; (4) incur liens; (5) sell assets or merge with or into other companies; and (6) enter into transactions with affiliates. All of these restrictive covenants are subject to a number of important exceptions and qualifications. In particular, NCM LLC has the ability to distribute all of its quarterly available cash as a restricted payment or as an investment, if it meets a minimum net senior secured leverage ratio. NCM LLC was in compliance with these non-maintenance covenants as of December 26, 2019 . Senior Secured Notes due 2028 —On October 8, 2019, NCM LLC completed a private offering of $400.0 million aggregate principal amount of 5.875% Senior Secured Notes due 2028 (the “Notes due 2028”) to eligible purchasers. The Notes due 2028 will mature on April 15, 2028. Interest on the Notes due 2028 accrues at a rate of 5.875% per annum and is payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2020. NCM LLC may redeem all or any portion of the Notes due 2028 prior to April 15, 2023, at a redemption price equal to 100% of the principal amount plus the applicable premium, plus accrued and unpaid interest, if any, to the redemption date. NCM LLC may redeem all or any portion of the Notes due 2028, on or after April 15, 2023, at specified redemption prices, plus accrued and unpaid interest, if any, to the redemption date. In addition, at any time prior to April 15, 2023, NCM LLC may on any one or more occasions redeem up to 35% of the original aggregate principal amount of the Notes due 2028 from the net proceeds of certain equity offerings at a redemption price equal to 105.875% of the principal amount of the Notes due 2028 redeemed, plus accrued and unpaid interest, if any, to the redemption date, provided that at least 65% of the original aggregate principal amount of the Notes due 2028 remains outstanding after each such redemption and the redemption occurs within 90 days after the closing of such applicable equity offering. The Indenture contains covenants that, among other things, restrict NCM LLC’s ability and the ability of its restricted subsidiaries, if any, to: (1) incur additional debt; (2) make distributions or make certain other restricted payments; (3) make certain investments; (4) incur certain liens; (5) sell assets or merge with or into other companies; and (6) enter into transactions with affiliates. All of these restrictive covenants are subject to a number of important exceptions and qualifications. In particular, NCM LLC may distribute all of its quarterly available cash as a restricted payment or as an investment, provided that NCM LLC satisfies a minimum net senior secured leverage ratio. Future Maturities of Borrowings – The scheduled annual maturities on the Senior Secured Credit Facility, Notes due 2026 and Notes due 2028 as of December 26, 2019 are as follows (in millions): Year Amount 2020 $ 2.7 2021 2.7 2022 2.7 2023 41.7 2024 2.7 Thereafter 883.1 Total $ 935.6 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 26, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 11. SHARE-BASED COMPENSATION The NCM, Inc. 2016 Equity Incentive Plan (the “2016 Plan”) reserves 4,400,000 shares of common stock available for issuance or delivery under the 2016 Plan, of which 1,361,342 shares remain available for future grants as of December 26, 2019 (assuming 100% achievement of targets on performance-based restricted stock). The Company began issuing shares under the 2016 Plan in the second quarter of 2016, following its approval by NCM, Inc.’s stockholders. The 2016 Plan replaced NCM, Inc.’s 2007 Equity Incentive Plan (the “2007 Plan”), which was set to expire by its terms in February 2017. The shares of common stock that were available for issuance under the 2007 Plan are no longer available for issuance following the approval of the 2016 Plan. Any forfeitures of shares granted pursuant to the 2007 Plan will be cancelled and not available for future grant. The types of awards that may be granted under the 2016 Plan include stock options, stock appreciation rights, restricted stock, restricted stock units or other stock based awards. Certain option and share awards provide for accelerated vesting if there is a change in control, as defined in the 2007 Plan and the 2016 Plan. Upon vesting of the restricted stock awards or exercise of options, NCM LLC will issue common membership units to the Company equal to the number of shares of the Company’s common stock represented by such awards. Compensation Cost —The Company recognized $5.5 million , $7.8 million and $11.2 million for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively, of share-based compensation expense within Network costs, Selling and marketing costs and Administrative and other costs in the Consolidated Statements of Income as shown in the table below (in millions): Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Share-based compensation costs included in network costs $ 0.4 $ 0.6 $ 1.0 Share-based compensation costs included in selling and marketing costs 1.4 2.5 4.1 Share-based compensation costs included in administrative and other costs 3.7 4.7 6.1 Total share-based compensation costs $ 5.5 $ 7.8 $ 11.2 During the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , $0.2 million , $0.2 million and $0.3 million was capitalized, respectively, in a corresponding manner to the capitalization of employee’s salaries for capitalized labor. The income tax benefit recognized in the income statement for share-based compensation was approximately $0.7 million , $1.7 million and $3.0 million for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. As of December 26, 2019 , there was $0.4 million unrecognized compensation cost related to unvested options, which will be recognized over a remaining period of 2.6 years . As of December 26, 2019 , unrecognized compensation cost related to restricted stock and restricted stock units was approximately $4.8 million , which will be recognized over a weighted average remaining period of 1.7 years . Stock Options —The Company granted stock options during 2019 for the first time since 2012. The Stock options awarded in 2019 contained a market condition as the options were granted with an exercise price in excess of the closing market price of NCM, Inc. common stock on the date the Company’s Board of Directors approved the grant. Stock options awarded in 2012 and prior were granted with an exercise price equal to the closing market price of NCM, Inc. common stock on the date the Company’s Board of Directors approved the grant. All options have either 10 -year or 15 -year contractual terms. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing valuation model that uses the assumptions noted in the table below. Expected volatilities are based on implied volatilities from traded options on the Company’s stock, historical volatility of the Company’s stock, and other factors. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted was developed based on historical and peer company data and represents the period of time that options granted are expected to be outstanding. The expected term of the options granted during 2019 was adjusted to include the Company's cost of equity in order to incorporate the impact of the option's market condition and simulate a lattice model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following assumptions were used in the valuation of the options for the year ended December 26, 2019 . No options were granted during the years ended December 27, 2018 and December 28, 2017 . Years Ended December 26, 2019 Expected term (in years) 6.8 Risk free interest rate 1.8 % Expected volatility 36.6 % Dividend yield 8.9 % The intrinsic value of options exercised during the year was $0.0 million , $0.0 million and $0.1 million for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. A summary of option award activity under the 2007 and 2016 Plans as of December 26, 2019 , and changes during the year then ended are presented below: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in millions) Outstanding as of December 28, 2018 1,950,750 $ 16.45 2.0 $ — Granted 650,198 $ 8.00 $ — Forfeited (26,946 ) $ 17.38 $ — Expired (23,904 ) $ 15.19 $ — Outstanding as of December 26, 2019 2,550,098 $ 14.30 3.2 $ — Exercisable as of December 26, 2019 1,899,900 $ 16.45 1.0 $ — Vested and expected to vest as of December 26, 2019 2,527,755 $ 14.35 3.2 $ — Restricted Stock and Restricted Stock Units —Under the non-vested stock program, common stock of the Company may be granted at no cost to officers, independent directors and employees, subject to requisite service and/or financial performance targets. As such restrictions lapse, the award vests in that proportion. The participants are entitled to dividend equivalents and to vote their respective shares (in the case of restricted stock), although the sale and transfer of such shares is prohibited and the shares are subject to forfeiture during the restricted period. Additionally, the accrued dividend equivalents are subject to forfeiture during the restricted period should the underlying shares not vest. As of December 26, 2019 and December 27, 2018 , accrued dividend equivalents totaled $1.6 million and $1.6 million , respectively and during the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , the Company paid $0.9 million , $2.1 million and $2.1 million , respectively, for dividend equivalents upon vesting of the restricted stock and restricted stock units. The Company has issued time-based restricted stock to its employees which vests over a three -year period with one-third vesting on each anniversary of the date of grant and performance-based restricted stock which vests following a three -year measurement period to the extent that the Company achieves specified non-GAAP targets at the end of the measurement period. The Company also grants restricted stock units to its non-employee directors that vest after approximately one year . The grant date fair value of restricted stock and restricted stock units is based on the closing market price of NCM, Inc. common stock on the date of grant. An annual forfeiture rate of 2 - 6% was estimated to reflect the potential separation of employees. The weighted average grant date fair value of non-vested stock was $7.02 , $6.65 and $14.34 for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. The total fair value of awards vested was $6.8 million , $15.5 million and $17.3 million during the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. A summary of restricted stock award and restricted stock unit activity as of December 26, 2019 , and changes during the year then ended are presented below: Number of Restricted Shares and Restricted Stock Units Weighted Average Grant-Date Fair Value Non-vested balance as of December 28, 2018 1,825,983 $ 11.31 Granted 823,728 $ 7.02 Vested (1) (580,489 ) $ 11.78 Forfeited (282,004 ) $ 14.48 Non-vested balance as of December 26, 2019 1,787,218 $ 8.68 (1) Includes 185,019 vested shares that were withheld to cover tax obligations and were subsequently canceled. The above table reflects performance-based restricted stock granted at 100% achievement of performance conditions and as such does not reflect the maximum or minimum number of shares of performance-based restricted stock contingently issuable. An additional 510,681 shares of restricted stock could be issued if the performance criteria maximums are met. As of December 26, 2019 , the total number of restricted stock and restricted stock units that are ultimately expected to vest, after consideration of expected forfeitures and current projections of estimated vesting of performance-based restricted stock is 1,453,361 shares. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 26, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 12. EMPLOYEE BENEFIT PLANS The Company sponsors the NCM 401(k) Profit Sharing Plan (the “Plan”) under Section 401(k) of the Internal Revenue Code of 1986, as amended, for the benefit of substantially all full-time employees. The Plan provides that participants may contribute up to 20% of their compensation, subject to Internal Revenue Service limitations. Employee contributions are invested in various investment funds based upon election made by the employee. The Company made discretionary contributions of $1.2 million , $1.2 million and $1.2 million during the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 26, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. COMMITMENTS AND CONTINGENCIES Legal Actions —The Company is subject to claims and legal actions in the ordinary course of business. The Company believes such claims will not have a material effect, individually and in aggregate, on its financial position, results of operations or cash flows. Operating Commitments-Facilities —The Company has entered into operating lease agreements for its corporate headquarters and other regional offices. The Company has right-of-use (“ROU”) assets of $21.5 million and short-term and long-term lease liabilities of $1.6 million and $24.0 million , respectively, on the balance sheet as of December 26, 2019 for all material leases with terms longer than twelve months. These balances are included within “Other assets”, “Other current liabilities” and “Other liabilities”, respectively, on the audited Condensed Consolidated Balance Sheets. The Company has options on certain of these facilities to extend the lease or to terminate part or all of the leased space prior to the lease end date. Certain termination fees would be due upon exercise of the early termination options as outlined within the underlying agreements. None of these options were considered reasonably certain of exercise and thus have not been recognized as part of the ROU assets and lease liabilities. As of December 26, 2019 , the Company had a weighted average remaining lease term of 10.1 years on these leases. The Company has also entered into certain short-term leases with a term of less than one year. These leases are not included within the Company’s ROU assets or lease liabilities due to the Company’s election of the practical expedient in ASC 842-20-25-2 for short-term leases. During the twelve months ended December 26, 2019 , the Company recognized the following components of total lease cost (in millions). These costs are presented within “Selling and marketing costs” and “Administrative and other costs” within the audited Consolidated Statements of Income depending upon the nature of the use of the facility. Year ended December 26, 2019 Operating lease cost $ 3.2 Short-term lease cost 0.2 Variable lease cost 0.5 Total lease cost $ 3.9 The Company made lease payments for the year ended December 26, 2019 of $3.3 million . These payments are included within cash flows from operating activities within the audited Consolidated Statement of Cash Flows. The minimum lease payments under noncancelable operating leases as of December 26, 2019 were as follows (in millions): Year Minimum Lease Payments 2020 $ 3.5 2021 3.5 2022 3.7 2023 3.7 2024 3.7 Thereafter 18.6 Total $ 36.7 Less: Imputed interest on future lease payments (11.1 ) Total lease liability as of December 26, 2019 per the Condensed Consolidated Balance Sheet $ 25.6 During the year ended December 28, 2017, the Company recorded a $1.8 million of expense for an early lease termination fee. The fee was reimbursed by the landlord of the Company’s new building, which is being treated as a lease incentive and amortized over the term of the new lease. When measuring the ROU assets and lease liabilities recorded, the Company utilized its incremental borrowing rate in order to determine the present value of the lease payments as the leases do not provide an implicit rate. The Company used the rate of interest that it would have paid to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. As of December 26, 2019 , the Company’s weighted average annual discount rate used to establish the ROU assets and lease liabilities was 7.35% . Operating Commitments - ESAs and Affiliate Agreements —The Company has entered into long-term ESAs with the founding members and multi-year agreements with certain network affiliates, or third-party theater circuits. The ESAs and network affiliate agreements grant NCM LLC exclusive rights in their theaters to sell advertising, subject to limited exceptions. The Company recognizes intangible assets upon issuance of membership units to the founding members in accordance with NCM LLC’s Common Unit Adjustment Agreement and upfront cash payments to the affiliates for the contractual rights to provide the Company’s services within their theaters as further discussed within Note 5— Intangible Assets . These ESAs and network affiliate agreements are considered leases under ASC 842 once the asset is identified and the period of control is determined upon the scheduling of the showtimes by the exhibitors, typically one week prior to the showtime. As such, the leases are considered short-term in nature, specifically less than one month. Within ASC 842, leases with terms of less than one month are exempt from the majority of the accounting and disclosure requirements, including disclosure of short-term lease expense. No ROU assets or lease liabilities were recognized for these agreements and no change to the balance sheet presentation of the intangible assets was necessary. However, the amortization of these intangible assets is considered lease expense and was therefore, reclassified in the current period from “Depreciation and amortization expense” to “Amortization of intangibles recorded for network theater screen leases” within the audited Condensed Consolidated Statement of Income. In consideration for NCM LLC’s access to the founding members’ theater attendees for on-screen advertising and use of lobbies and other space within the founding members’ theaters for the LEN and lobby promotions, the founding members receive a monthly theater access fee under the ESAs. The theater access fee is composed of a fixed payment per patron, a fixed payment per digital screen (connected to the DCN) and a fee for access to higher quality digital cinema equipment. The payment per theater patron increases by 8% every five years , with the next increase taking effect in fiscal year 2022. The payment per digital screen and for digital cinema equipment increases annually by 5% . The theater access fee paid in the aggregate to all founding members cannot be less than 12% of NCM LLC’s aggregate advertising revenue (as defined in the ESA), or it will be adjusted upward to reach this minimum payment. As of December 26, 2019 and December 27, 2018 , the Company had no liabilities recorded for the minimum payment, as the theater access fee was in excess of the minimum. Following the 2019 ESA Amendments, Cinemark and Regal receive an additional monthly theater access fee beginning November 1, 2019 in consideration for NCM LLC's access to certain on-screen advertising inventory after the advertised showtime of a feature film. These fees are also based upon a fixed payment per patron beginning at (i) $0.025 per patron on November 1, 2019, (ii) $0.0375 per patron beginning on November 1, 2020, (iii) $0.05 per patron beginning on November 1, 2021, (iv) $0.052 per patron beginning on November 1, 2022 and (v) increase 8% every five years beginning November 1, 2027. Additionally, following the 2019 ESA Amendments, beginning on November 1, 2019, NCM LLC is entitled to display an additional single unit that is either 30 or 60 seconds of the Noovie pre-show in the trailer position directly prior to the one or two trailers preceding the feature film (the “Platinum Spot”). In consideration for the utilization of the theaters for the Platinum Spots, Cinemark and Regal is entitled to receive 25% of all revenue generated for the actual display of Platinum Spots in their applicable theaters, subject to a specified minimum. If NCM LLC runs advertising in more than one concurrent advertisers’ Platinum Spot for any portion of the network over a period of time, then NCM LLC will be required to satisfy a minimum average CPM for that period of time. The network affiliates compensation is considered variable lease expense and varies by circuit depending upon the agreed upon terms of the network affiliate agreement. The majority of agreements are centered around a revenue share where an agreed upon percentage of the advertising revenue received from a theater’s attendance is paid to the circuit. As part of the network affiliate agreements entered into in the ordinary course of business under which the Company sells advertising for display in various network affiliate theater chains, the Company has agreed to certain minimum revenue guarantees on a per attendee basis. If a network affiliate achieves the attendance set forth in their respective agreement, the Company has guaranteed minimum revenue for the network affiliate per attendee if such amount paid under the revenue share arrangement is less than its guaranteed amount. As of December 26, 2019 , the maximum potential amount of future payments the Company could be required to make pursuant to the minimum revenue guarantees is $84.6 million over the remaining terms of the network affiliate agreements. These minimum guarantees relate to various affiliate agreements ranging in term from one to twenty years, prior to any renewal periods of which some are at the option of the Company. During the year ended December 26, 2019 , December 27, 2018 and December 28, 2017 the Company paid $0.5 million , $0.7 million and $0.1 million , respectively, related to these minimum guarantees. As of December 26, 2019 and December 27, 2018 , the Company had $0.5 million and $0.1 million in liabilities recorded for these obligations, as such guarantees are less than the expected share of revenue paid to the affiliate. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 26, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. FAIR VALUE MEASUREMENTS Non-Recurring Measurements —Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These assets include long-lived assets, intangible assets, cost and equity method investments, notes receivable and borrowings. Long-Lived Assets, Intangible Assets, Other Investments and Notes Receivable —As described in Note 1— Basis of Presentation and Summary of Significant Accounting Policies , the Company regularly reviews long-lived assets (primarily property, plant and equipment), intangible assets, investments accounted for under the cost or equity method and notes receivable for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. When the estimated fair value is determined to be lower than the carrying value of the asset, an impairment charge is recorded to write the asset down to its estimated fair value. Other investments consisted of the following (in millions): As of December 26, 2019 December 27, 2018 Investment in AC JV, LLC (1) $ 0.9 $ 0.9 Other investments (2) 0.1 2.1 Total $ 1.0 $ 3.0 (1) Refer to Note 9— Related Party Transactions . (2) The Company received equity securities in privately held companies as consideration for a portion of advertising contracts. The equity securities were accounted for under the cost method and represent an ownership of less than 20% . The Company does not exert significant influence on these companies’ operating or financial activities. During the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , the Company recorded impairment charges of $2.0 million , $0.4 million and $3.1 million , respectively, on certain of its investments due to a significant deterioration in the business prospects of the investee or new information regarding the fair value of the investee, which brought the total remaining value of the respective impaired investments to $0.0 million as of December 26, 2019 . As of December 26, 2019 , no other observable price changes or impairments have been recorded as a result of the Company’s qualitative assessment of identified events or changes in the circumstances of the remaining investments. The investment in AC JV was initially valued using comparative market multiples. The other investments were recorded based upon the fair value of the services provided in exchange for the investment. Refer to Note 1— Basis of Presentation and Summary of Significant Accounting Policies for more details. As the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, they have been classified as Level 3 in the fair value hierarchy. As of December 26, 2019 and December 27, 2018 , the Company had notes receivable totaling $0.0 million and $5.6 million , respectively, from its founding members related to the sale of Fathom Events, as described in Note 9— Related Party Transactions . These notes were initially valued using comparative market multiples. The notes receivables were paid in full during 2019, reducing the balance to $0.0 million as of December 26, 2019. The notes were classified as Level 3 in the fair value hierarchy as the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs. Borrowings —The carrying amount of the revolving credit facility is considered a reasonable estimate of fair value due to its floating-rate terms. The estimated fair values of the Company’s financial instruments where carrying values do not approximate fair value are as follows (in millions): As of December 26, 2019 As of December 27, 2018 Carrying Value Fair Value (1) Carrying Value Fair Value (1) Term Loans $ 266.6 $ 266.9 $ 269.4 $ 261.2 Senior Notes due 2022 — — 400.0 401.8 Senior Notes due 2026 230.0 226.2 235.0 211.0 Senior Notes due 2028 400.0 426.7 — — (1) The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2. Recurring Measurements —The fair values of the Company’s assets and liabilities measured on a recurring basis pursuant to ASC 820-10 Fair Value Measurements and Disclosures are as follows (in millions): Fair Value Measurements at Reporting Date Using Fair Value As of December 26, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ASSETS: Cash equivalents (1) $ 28.8 $ 16.8 $ 12.0 $ — Short-term marketable securities (2) 17.5 — 17.5 — Long-term marketable securities (2) 7.5 — 7.5 — Total assets $ 53.8 $ 16.8 $ 37.0 $ — Fair Value Measurements at Reporting Date Using Fair Value As of December 27, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ASSETS: Cash equivalents (1) $ 18.2 $ 11.2 $ 7.0 $ — Short-term marketable securities (2) 24.0 — 24.0 — Long-term marketable securities (2) 10.2 — 10.2 — Total assets $ 52.4 $ 11.2 $ 41.2 $ — (1) Cash Equivalents —The Company’s cash equivalents are carried at estimated fair value. Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts and commercial paper with original maturities of three months or less, which are classified as Level 2 and are valued as described below. (2) Short-Term and Long-Term Marketable Securities —The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds, commercial paper and certificates of deposit are valued using third party broker quotes. The value of the Company’s government agency bonds and municipal bonds are derived from quoted market information. The inputs in the valuation are classified as Level 1 if there is an active market for these securities; however, if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper and certificates of deposit is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the years ended December 26, 2019 and December 27, 2018 , there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short term marketable securities is based on the specific identification method. As of December 26, 2019 and December 27, 2018 , there was an inconsequential amount and $0.2 million , respectively, of gross unrealized losses related to individual securities of $6.5 million and $11.8 million , respectively, that had been in a continuous loss position for 12 months or longer. The Company has not recorded an impairment because it has the intention and ability to hold these securities to maturity. The amortized cost basis, aggregate fair value and maturities of the marketable securities the Company held as of December 26, 2019 and December 27, 2018 are as follows: As of December 26, 2019 Amortized Cost Basis (in millions) Aggregate Fair Value (in millions) Maturities (1) (in years) MARKETABLE SECURITIES: Short-term U.S. government agency bonds $ 3.5 $ 3.5 0.4 Short-term certificates of deposit 0.9 0.9 0.8 Short-term municipal bonds 1.2 1.2 0.5 Short-term commercial paper: Financial 8.0 7.9 0.3 Industrial 4.0 4.0 0.2 Total short-term marketable securities 17.6 17.5 Long-term municipal bonds Long-term U.S. government agency bonds 4.5 4.5 2.2 Long-term certificates of deposit 3.0 3.0 3.6 Total long-term marketable securities 7.5 7.5 Total marketable securities $ 25.1 $ 25.0 As of December 27, 2018 Amortized Cost Basis (in millions) Aggregate Fair Value (in millions) Maturities (1) (in years) MARKETABLE SECURITIES: Short-term U.S. government agency bonds $ 3.9 $ 3.9 0.5 Short-term U.S. government treasury bonds 0.3 0.3 0.5 Short-term certificates of deposit 3.6 3.6 0.6 Short-term municipal bonds 0.5 0.5 0.1 Short-term commercial paper: Financial 3.8 3.8 0.1 Industrial 12.0 11.9 0.1 Total short-term marketable securities 24.1 24.0 Long-term municipal bonds 1.2 1.3 1.5 Long-term U.S. government agency bonds 6.9 6.8 2.1 Long-term certificates of deposit 2.4 2.1 2.9 Total long-term marketable securities 10.5 10.2 Total marketable securities $ 34.6 $ 34.2 (1) Maturities — Securities available for sale include obligations with various contractual maturity dates some of which are greater than one year. The Company considers the securities to be liquid and convertible to cash within 30 days. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 26, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | 15. VALUATION AND QUALIFYING ACCOUNTS The Company’s allowance for doubtful accounts and the valuation allowance on deferred tax assets for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 were as follows (in millions): Years Ended December 26, 2019 December 27, 2018 December 28, 2017 ALLOWANCE FOR DOUBTFUL ACCOUNTS: Balance at beginning of period $ 6.0 $ 6.0 $ 6.3 Provision for bad debt 1.2 1.6 1.1 Write-offs, net (1.0 ) (1.6 ) (1.4 ) Balance at end of period $ 6.2 $ 6.0 $ 6.0 Years Ended December 26, 2019 December 27, 2018 December 28, 2017 VALUATION ALLOWANCE ON DEFERRED TAX ASSETS: Balance at beginning of period $ 80.1 $ 98.1 $ 110.3 Valuation allowance added (1) 1.5 — — Valuation allowance reversed (2) — (18.0 ) (12.2 ) Balance at end of period $ 81.6 $ 80.1 $ 98.1 (1) The increase within the valuation allowance during the year ended December 26, 2019 relates to the establishment of a valuation allowance for state NOLs and investment losses that the Company no longer expects to realize prior to expiration and timing differences between the recognition of available cash distributions for book and tax purposes. (2) The decreases within the valuation allowance during the years ended December 27, 2018 and December 28, 2017 relate to movement within the underlying residual portion of the Investment in NCM LLC deferred tax asset due primarily to timing differences between the recognition of available cash distributions for book and tax purposes. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 26, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 16. QUARTERLY FINANCIAL DATA (UNAUDITED) The following represents selected information from the Company’s unaudited quarterly Consolidated Statements of Income for the years ended December 26, 2019 and December 27, 2018 (in millions, except per share data): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 76.9 $ 110.2 $ 110.5 $ 147.2 Operating expenses 66.0 72.5 70.5 74.5 Operating income 10.9 37.7 40.0 72.7 Consolidated net (loss) income (2.6 ) 21.0 22.8 45.5 Net (loss) income attributable to NCM, Inc. (1.1 ) 8.9 9.2 19.1 (Loss) Earnings per NCM, Inc. share, basic (1) (0.01 ) 0.11 0.12 0.25 (Loss) Earnings per NCM, Inc. share, diluted (1) (0.01 ) 0.11 0.12 0.24 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 80.2 $ 113.7 $ 110.1 $ 137.4 Operating expenses 69.2 73.5 67.8 76.6 Operating income 11.0 40.2 42.3 60.8 Consolidated net (loss) income (3.5 ) 17.0 25.7 41.0 Net (loss) income attributable to NCM, Inc. (1.9 ) 4.2 11.2 16.3 (Loss) Earnings per NCM, Inc. share, basic (1) (0.03 ) 0.05 0.15 0.21 (Loss) Earnings per NCM, Inc. share, diluted (1) (0.03 ) 0.05 0.14 0.21 (1) Earnings per share in each quarter is computed using the weighted-average number of common shares outstanding during that quarter while earnings per share for the full year is computed using the weighted average number of common shares outstanding during the year. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 26, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 17. SUBSEQUENT EVENT On February 20, 2020 , the Company declared a cash dividend of $0.19 per share (approximately $14.8 million ) on each share of the Company’s common stock (not including outstanding restricted stock which will accrue dividends until the shares vest) to stockholders of record on March 3, 2020 to be paid on March 17, 2020 . |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has prepared its Consolidated Financial Statements and related notes of NCM, Inc. in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain reclassifications have been made to the prior years’ financial statements to conform to the current presentation (refer to Consolidated Statements of Income and Consolidated Statement of Cash Flows, whereby the Company presented depreciation expense and amortization expense as two separate lines). In the opinion of management, all adjustments necessary to present fairly in all material respects the financial position, results of operations and cash flows for all periods presented have been made. The Company’s business is seasonal and for this and other reasons operating results for interim periods may not be indicative of the Company’s full year results or future performance. As a result of the various related-party agreements discussed in Note 9— Related Party Transactions , the operating results as presented are not necessarily indicative of the results that might have occurred if all agreements were with non-related third parties. Advertising is the principal business activity of the Company and is the Company’s only reportable segment under the requirements of ASC 280 – Segment Reporting. |
Estimates | Estimates —The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to the reserve for uncollectible accounts receivable, share-based compensation and income taxes. Actual results could differ from those estimates. |
Accounting Period | Accounting Period —The Company has a 52-week or 53-week fiscal year ending on the first Thursday after December 25. Fiscal years 2017 , 2018 and 2019 contained 52 weeks. Throughout this document, the fiscal years are referred to as set forth below: Fiscal Year Ended Reference in this Document December 26, 2019 2019 December 27, 2018 2018 December 28, 2017 2017 |
Revenue Recognition | Revenue Recognition —The Company derives revenue principally from the sale of advertising to national, regional and local businesses in Noovie , our cinema advertising and entertainment pre-show seen on movie screens across the U.S., as well as on our LEN, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theater lobbies. We also sell digital online and mobile advertising through our Cinema Accelerator product and across our suite of Noovie digital properties, including Noovie.com, Noovie Shuffle, Name That Movie, Noovie Arcade, and Fantasy Movie League , in order to reach entertainment audiences beyond the theater. The Company also has a long-term agreement to exhibit the advertising of the founding members’ beverage suppliers. The Company considers the terms of each arrangement to determine the appropriate accounting treatment as more fully discussed in Note 2— Revenue from Contracts with Customers . |
Operating Costs | Operating Costs —Advertising fulfillment-related operating costs primarily include personnel and other costs related to advertising fulfillment, payments due to unaffiliated theater circuits under the network affiliate agreements, and to a lesser extent, production costs of non-digital advertising. Payments to the founding members of a theater access fee is comprised of a payment per theater attendee, a payment for post-showtime advertising, a payment per digital screen and a payment per digital cinema projector equipped in the theaters, all of which escalate over time, and payment for revenue share of the Platinum Spot. Refer to Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this document. Network costs include personnel, satellite bandwidth, repairs, and other costs of maintaining and operating the digital network and preparing advertising and other content for transmission across the digital network. |
Restricted Cash and Cash Equivalents | Cash and Cash Equivalents —All highly liquid debt instruments and investments purchased with an original maturity of three months or less are classified as cash equivalents and are considered available-for-sale securities. There are cash balances in a bank in excess of the federally insured limits or in the form of a money market demand account with a major financial institution |
Marketable Securities | Marketable Securities —The Company’s marketable securities are classified as available-for-sale and are reported at fair value. The fair value of substantially all securities is determined by quoted market information and pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers —Bad debts are provided for using the allowance for doubtful accounts method based on historical experience and management’s evaluation of outstanding receivables at the end of the period. Receivables are written off when management determines amounts are uncollectible. Trade accounts receivable are uncollateralized and represent a large number of geographically dispersed debtors. The collectability risk with respect to national and regional advertising is reduced by transacting with founding members or large, national advertising agencies who have strong reputations in the advertising industry and clients with stable financial positions. The Company has smaller contracts with thousands of local clients that are not individually significant. As of December 26, 2019 and December 27, 2018 , there were no advertising agency groups or individual customers through which the Company sources national advertising revenue representing more than 10% of the Company’s outstanding gross receivable balance. During the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , there were no customers that accounted for more than 10% of revenue. |
Long-lived Assets | Long-lived Assets —Property and equipment is stated at cost, net of accumulated depreciation or amortization. Generally, the equipment associated with the digital network of the founding member theaters is owned by the founding members, while the equipment associated with network affiliate theaters is owned by the Company. Major renewals and improvements are capitalized, while replacements, maintenance, and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. The Company records depreciation using the straight-line method over the following estimated useful lives: Equipment 4-10 years Computer hardware and software 3-5 years Leasehold improvements Lesser of lease term or asset life Software and website development costs developed or obtained for internal use are accounted for in accordance with ASC 350— Internal Use Software and ASC 350– Website Development Costs . The subtopics require the capitalization of certain costs incurred in developing or obtaining software for internal use. Software costs related primarily to the Company’s inventory management systems, digital products, digital network distribution system (DCS), enterprise resource planning system and website development costs, which are included in equipment, and are depreciated over three to five years . As of December 26, 2019 and December 27, 2018 , the Company had a net book value of $14.1 million and $17.4 million , respectively, of capitalized software and website development costs. Depreciation expense related to software and website development was approximately $8.4 million , $6.7 million and $6.0 million for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. The subtopics also require the capitalization of certain implementation costs related to qualifying Cloud Computing Arrangements (“CCAs”) upon adoption of ASU 2018-15— Intangibles - Goodwill and Other - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract as of September 28, 2018. As of December 26, 2019 and December 27, 2018 the Company had a gross and net book value of $0.6 million and $0.0 million of capitalized implementation costs for CCAs, respectively. These costs primarily relate to the Company's expected new hosted planning, proposal and inventory tracking system. These costs will be amortized to “Administrative and other costs” within the audited Consolidated Statements of Income over the life of the hosting arrangement beginning at implementation. For the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , the Company recorded $3.6 million , $1.7 million and $3.6 million in research and development expense, respectively. The Company assesses impairment of long-lived assets pursuant with ASC 360 – Property, Plant and Equipment. This includes determining if certain triggering events have occurred that could affect the value of an asset. The Company recorded losses of $0.2 million , $0.5 million and $0.1 million related to the write-off of property, plant and equipment during the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively. |
Intangible Assets | Intangible Assets —Intangible assets consist of contractual rights to provide its services within the theaters of the founding members and network affiliates and are stated at cost, net of accumulated amortization. The Company records amortization using the straight-line method over the contractual life of the intangibles, corresponding to the term of the ESAs or the term of the contract with the network affiliate. Intangible assets are tested for impairment at least annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. In its impairment testing, the Company estimates the fair value of its ESAs or network affiliate agreements by determining the estimated future cash flows associated with the ESAs or network affiliate agreements. If after determining that gross cash flows are insufficient to recover the asset, the estimated fair value is less than the carrying value, the intangible asset is written down to its estimated fair value. Significant judgment is involved in estimating long-term cash flow forecasts. The Company recorded $ 0.1 million, $ 0.0 million and $ 0.0 million, respectively, in impairment charges related to intangible assets |
Amounts Due to/from Founding Members | Amounts Due to/from Founding Members —Amounts due to/from founding members include amounts due for the theater access fees and revenue share, offset by a receivable for advertising time purchased by the founding members on behalf of their beverage concessionaire, plus any amounts outstanding under other contractually obligated payments. Payments to or received from the founding members against outstanding balances are made monthly. Available cash distributions are made quarterly. |
Income Taxes | Income Taxes —Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740 – Income Taxes . The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized, which will be assessed on an on-going basis. In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities. The Company follows ASC 740-10-25, which requires the use of a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. Only tax positions that meet the more likely than not recognition threshold are recognized. The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. |
Debt Issuance Costs | Debt Issuance Costs —In relation to the issuance of outstanding debt discussed in Note 10— Borrowings , there is a balance of $12.9 million and $12.8 million in deferred financing costs as of December 26, 2019 and December 27, 2018 , respectively. The debt issuance costs are being amortized on a straight-line basis over the terms of the underlying obligations and are included in interest on borrowings, which approximates the effective interest method. Debt issuance costs are written-off in the event that the underlying debt is extinguished through partial or full repayment of the obligation. |
Share-Based Compensation | Share-Based Compensation —During 2019, the Company issued stock options, restricted stock and restricted stock units. Restricted stock and restricted stock units vest upon the achievement of Company three -year cumulative performance measures and service conditions or only service conditions. The Company recognizes share-based compensation net of an estimated forfeiture rate. Compensation expense of restricted stock that vests upon the achievement of Company performance measures is based on management’s financial projections and the probability of achieving the projections, which require considerable judgment. A cumulative adjustment is recorded to share-based compensation expense in periods that management changes its estimate of the number of shares expected to vest. Ultimately, the Company adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. Dividends are accrued when declared on unvested restricted stock that is expected to vest and are only paid with respect to shares that actually vest. Compensation cost of stock options is based on the estimated grant date fair value using the Black-Scholes option pricing model, which requires that the Company make estimates of various factors. Under the fair value recognition provisions of ASC 718 Compensation – Stock Compensation, the Company recognizes share-based compensation net of an estimated forfeiture rate, and therefore only recognizes compensation cost for those shares expected to vest over the requisite service period of the award. Refer to Note 11— Share-Based Compensation for more information. |
Fair Value Measurements | Fair Value Measurements —Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. |
Consolidation | Consolidation —NCM, Inc. consolidates the accounts of NCM LLC under the provisions of ASC 810, Consolidation (“ASC 810”). Under Accounting Standards Update 2015-2, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-2”), a limited partnership is a variable interest entity unless a simple majority or lower threshold of all limited partners unrelated to the general partner have kick-out or participating rights. The non-managing members of NCM LLC do not have dissolution rights or removal rights. NCM, Inc. has evaluated the provisions of the NCM LLC membership agreement and has concluded that the various rights of the non-managing members are not substantive participating rights under ASC 810, as they do not limit NCM, Inc.’s ability to make decisions in the ordinary course of business. As such, the Company concluded that NCM LLC is a variable interest entity and determined that NCM, Inc. should consolidate the accounts of NCM LLC pursuant to ASU 2015-2 because 1) it has the power to direct the activities of NCM LLC in its role as managing member and 2) NCM, Inc. has the obligation to absorb losses of, or the right to receive benefits from, NCM LLC that could potentially be significant provided its 48.8% ownership in NCM LLC. Prior to the prospective adoption of ASU 2015-2 in the first quarter of 2016, the Company reached the same conclusion under previous guidance in ASC 810 to consolidate NCM LLC. The following table presents the changes in NCM, Inc.’s equity resulting from net income attributable to NCM, Inc. and transfers to or from noncontrolling interests (in millions): Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Net income attributable to NCM, Inc. $ 36.1 $ 29.8 $ 58.3 NCM LLC equity issued for purchase of intangible asset 3.7 7.7 78.8 Income tax and other impacts of NCM LLC ownership changes (0.7 ) 7.0 28.6 NCM, Inc. investment in NCM LLC (1.7 ) — (84.9 ) Issuance of shares to founding members 1.7 — 84.7 Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests $ 39.1 $ 44.5 $ 165.5 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements During the first quarter of 2019, the Company adopted Accounting Standards Update 2016-2 and subsequent amendments, Leases (Topic 842) (together “ASC 842”) utilizing the Comparatives Under 840 option where only the current period financial statements and related disclosures are presented in accordance with the new standard. As of the adoption date of December 28, 2018 the Company recognized the following on the audited Condensed Consolidated Balance Sheets: a right-of-use (“ROU”) asset of $ 21.7 million within “Other assets”, a short-term lease liability of $ 1.4 million within “Other current liabilities”, a long-term lease liability of $ 24.5 million within “Other liabilities” and reversed the related deferred rent liability balance of $ 4.2 million for all leases with terms longer than twelve months related to its building operating leases. The Company elected to utilize the following practical expedients: (i) not being required to separate lease and non-lease components when accounting for the lease for all asset classes; and (ii) not accounting for short-term leases under the new standard. The Company also determined that the ESAs and affiliate agreements are considered leases under ASC 842. However, the identification of the asset and determination of the period of control is dependent upon the scheduling of the showtimes by the exhibitors. As the schedules are typically not determined until one week in advance of the showtime, on average, the leases are considered short term in nature, specifically less than one month. As such, no ROU assets or lease liabilities were recognized for these agreements. The issuance of NCM LLC membership units to the founding members in accordance with NCM LLC’s Common Unit Adjustment Agreement and upfront cash payments to affiliates for the contractual rights to provide services within their theaters will continue to be classified as intangible assets. However, the amortization of these intangible assets is now considered lease expense and has been reclassified within the current period from “Depreciation and amortization expense” to “Amortization of intangibles recorded for network theater screen leases” on the audited Consolidated Statement of Income. Additionally, these upfront cash payments to affiliates and receipt of integration payments from the founding members, as defined within Note 5— Intangible Assets , will be considered cash flows from operating activities on the audited Consolidated Statement of Cash Flows when incurred as they are related to operating leases and will be reclassified from cash flows from investing and financing activities, respectively. The Company has also incorporated additional disclosures in Note 13— Commitments and Contingencies to comply with ASC 842. During the first quarter of 2019, the Company adopted Accounting Standards Update 2018-7, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-7”), which amends Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The adoption of ASU 2018-7 had an immaterial impact on the audited Condensed Consolidated Financial statements or notes thereto. During the fourth quarter of 2018, the Company adopted a final rule issued by the SEC amending certain disclosure requirements deemed by the SEC to be redundant, duplicative, overlapping, outdated or superseded. The rule also added requirements to disclose (1) the changes in each caption of stockholders’ equity and non-controlling interests for the current and comparative year-to-date periods, with subtotals for each interim period and (2) the amount of dividends per share for each class of shares. The Company's adoption of the guidance resulted in changes to the presentation of the audited Consolidated Statement of Equity as a quarter to date equity rollforward is now also required for the current and comparable period. The Company implemented the amended disclosure requirements in the first quarter of 2019. The codification was updated to reflect the aforementioned SEC changes within Accounting Standards Update 2019-7, Codification Updates to SEC Sections ("ASU 2019-7") issued and effective during the third quarter of 2019. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements (“ASU 2016-13”), which requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted and is to be adopted on a modified retrospective basis. Upon the adoption of ASU 2016-13 on December 27, 2019, the Company expects to record a cumulative-effect adjustment related to the change in methodology surrounding the historical losses utilized in the calculation of the allowance for credit losses related to trade and unbilled accounts receivable. The Company is still evaluating the amount of adjustment. The Company will incorporate additional disclosures in its notes to its Consolidated Financial Statements to comply with ASU 2016-13 effective in the first quarter of 2020. The Company has designed and implemented changes to certain processes and internal controls related to its adoption of ASU 2016-13. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with partial early adoption permitted for eliminated disclosures. The method of adoption varies by the disclosure. Upon the adoption of ASU 2018-13 on December 27, 2019, the Company expects no changes to the Company's fair value disclosures as none of the changes within ASU 2018-13 were applicable to the Company. In December 2019, the FASB issued Accounting Standards Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which removes the following exceptions for the Company to analyze in a given period; the exception to the incremental approach for intraperiod tax allocation; the exception to accounting for basis differences when there are ownership changes in foreign investments; and the exception in interim periods income tax accounting for year-to-date losses that exceed anticipated losses. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact that adopting this guidance will have on the audited Consolidated Financial Statements or notes thereto. The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its audited Consolidated Financial Statements or notes thereto. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Fiscal Year Ends | Fiscal Year Ended Reference in this Document December 26, 2019 2019 December 27, 2018 2018 December 28, 2017 2017 |
Schedule of Receivables | As of December 26, 2019 December 27, 2018 Trade accounts $ 176.0 $ 154.0 Other 1.0 1.9 Less: Allowance for doubtful accounts (6.2 ) (6.0 ) Total $ 170.8 $ 149.9 |
Schedule of Useful Lives | Equipment 4-10 years Computer hardware and software 3-5 years Leasehold improvements Lesser of lease term or asset life |
Changes in Debt Issuance Costs | Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Beginning balance $ 12.8 $ 10.0 $ 12.6 Debt issuance costs 4.6 6.4 — Amortization of debt issuance costs (2.6 ) (2.6 ) (2.6 ) Write-off of debt issuance costs (1.9 ) (1.0 ) — Ending balance $ 12.9 $ 12.8 $ 10.0 |
Changes in Equity | Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Net income attributable to NCM, Inc. $ 36.1 $ 29.8 $ 58.3 NCM LLC equity issued for purchase of intangible asset 3.7 7.7 78.8 Income tax and other impacts of NCM LLC ownership changes (0.7 ) 7.0 28.6 NCM, Inc. investment in NCM LLC (1.7 ) — (84.9 ) Issuance of shares to founding members 1.7 — 84.7 Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests $ 39.1 $ 44.5 $ 165.5 |
Unaudited Consolidated Financial Statements and Corresponding Footnotes for Prior Periods Adjusted from Amounts Previously Reported to Reflect Correction of Error | . |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue from contracts with customers for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 : Years ended December 26, 2019 December 27, 2018 December 28, 2017 National advertising revenue $ 324.2 $ 312.0 $ 296.3 Local advertising revenue (1) 66.9 70.7 88.8 Regional advertising revenue (1) 24.7 27.3 11.1 Founding member advertising revenue from beverage concessionaire agreements 29.0 31.4 29.9 Total revenue $ 444.8 $ 441.4 $ 426.1 |
Contract with Customer, Asset and Liability | The changes in deferred revenue for the year ended December 26, 2019 were as follows (in millions): Year ended December 26, 2019 Balance at beginning of year $ (7.3 ) Performance obligations satisfied 7.3 New contract liabilities (7.6 ) Balance at end of year $ (7.6 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Net income attributable to NCM, Inc. (in millions) $ 36.1 $ 29.8 $ 58.3 Net income attributable to NCM, Inc. following conversion of dilutive membership units (net of estimated taxes of $0.0, $22.2 and $42.5) (in millions) $ 36.1 $ 58.0 $ 72.0 Weighted average shares outstanding: Basic 77,345,577 76,859,087 65,226,817 Add: Dilutive effect of stock options, restricted stock, and exchangeable NCM LLC common membership units 436,990 80,544,823 85,840,453 Diluted 77,782,567 157,403,910 151,067,270 Earnings per NCM, Inc. share: Basic $ 0.47 $ 0.39 $ 0.89 Diluted $ 0.46 $ 0.37 $ 0.48 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | As of December 26, 2019 December 27, 2018 Equipment, computer hardware and software $ 93.5 $ 90.8 Leasehold improvements 2.4 2.4 Less: Accumulated depreciation (70.7 ) (62.5 ) Subtotal 25.2 30.7 Construction in progress 8.0 2.9 Total property and equipment $ 33.2 $ 33.6 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Asset's Activity | The following is a summary of the Company’s intangible asset’s activity (in millions) during 2019 and 2018 : As of December 27, 2018 Additions (1) Disposals (2) Amortization Integration and other encumbered theater payments (4) As of December 26, 2019 Gross carrying amount $ 857.2 $ 8.9 $ (1.2 ) $ — $ (22.3 ) $ 842.6 Accumulated amortization (172.7 ) — 0.5 (26.7 ) — (198.9 ) Total intangible assets, net $ 684.5 $ 8.9 $ (0.7 ) $ (26.7 ) $ (22.3 ) $ 643.7 As of December 28, 2017 Additions (3) Amortization Integration and other encumbered theater payments (4) As of December 27, 2018 Gross carrying amount $ 862.6 $ 16.0 $ — $ (21.4 ) $ 857.2 Accumulated amortization (145.4 ) — (27.3 ) — (172.7 ) Total intangible assets, net $ 717.2 $ 16.0 $ (27.3 ) $ (21.4 ) $ 684.5 (1) During the first quarter of 2019, NCM LLC issued 1,044,665 common membership units to its founding members for the rights to exclusive access to the theater screens and attendees added, net of dispositions by the founding members to NCM LLC’s network during the 2018 fiscal year and NCM LLC recorded a net intangible asset of $7.6 million during the first quarter of 2019 as a result of the Common Unit Adjustment. During the third quarter of 2019, the Company capitalized $1.3 million of legal and professional costs incurred in conjunction with the 2019 ESA Amendments which extended the useful life of the intangible asset for Cinemark and Regal. (2) During the second quarter of 2019, AMC purchased one of the Company's affiliates and the Company wrote off the related intangible asset balance and accumulated amortization. A portion of the net book balance was reimbursed by AMC. The acquired theaters will be included within the Common Unit Adjustment calculation for AMC in March of 2020. During the fourth quarter of 2019, one of the Company's affiliates closed. As such, the Company wrote off the related intangible asset balance and accumulated amortization. (3) During the first quarter of 2018, NCM LLC issued 2,821,710 ( 3,736,860 issued, net of 915,150 returned) common membership units to its founding members for the rights to exclusive access to net new theater screens and attendees added by the founding members to NCM LLC’s network during 2017 and NCM LLC recorded a net intangible asset of $15.9 million in the first quarter of 2018 as a result of these Common Unit Adjustments. During 2018, the Company purchased intangible assets for $0.1 million associated with network affiliate agreements. (4) Carmike and Rave Cinemas had pre-existing advertising agreements for some of the theaters it owned prior to their acquisitions by AMC and Cinemark. As a result, AMC and Cinemark will make integration and other encumbered theater payments over the remaining term of those agreements. During the years ended December 26, 2019 and December 27, 2018 , NCM LLC recorded a reduction to net intangible assets of $22.3 million and $21.4 million , respectively, related to integration and other encumbered theater payments due from AMC and Cinemark. During the year ended December 26, 2019 and December 27, 2018 , AMC and Cinemark paid a total of $21.7 million and $22.7 million , respectively, related to integration and other encumbered theater payme |
Summary of Estimated Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the five succeeding years is as follows (in millions): Year Amortization 2020 $ 24.1 2021 24.0 2022 23.7 2023 23.3 2024 23.3 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Expenses | As of December 26, 2019 December 27, 2018 Make-good reserve $ 8.7 $ 8.0 Accrued interest 11.4 10.3 Deferred rent — 0.2 Other accrued expenses 2.0 3.2 Total accrued expenses $ 22.1 $ 21.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Current: Federal $ — $ (0.3 ) $ (1.6 ) State 0.3 0.5 — Total current income tax (benefit)/expense 0.3 0.2 (1.6 ) Deferred: Federal 10.0 13.2 142.1 State 2.1 10.1 39.8 Total deferred income tax expense 12.1 23.3 181.9 Total income tax provision on Consolidated Statements of Income $ 12.4 $ 23.5 $ 180.3 |
Schedule of Reconciliation of Provision for Income Taxes | Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Provision calculated at federal statutory income tax rate: Income before income taxes $ 20.8 $ 21.8 $ 102.6 Less: Noncontrolling interests (10.6 ) (10.6 ) (19.7 ) Income attributable to NCM, Inc. 10.2 11.2 82.9 Current year change to enacted federal and state rate (1) (0.7 ) 6.5 92.2 State and local income taxes, net of federal benefit 1.7 2.6 8.7 NCM LLC income taxes 0.2 0.4 0.2 Share-based compensation 0.3 1.1 0.8 Uncertain tax positions (2) — (0.4 ) (1.7 ) Change in the valuation allowance 0.9 0.5 (4.2 ) NCM LLC membership unit issuance to NCM, Inc. 0.2 0.2 0.5 Executive compensation 0.4 1.4 0.4 Other (0.8 ) — 0.5 Total income tax provision $ 12.4 $ 23.5 $ 180.3 (1) Refer to the discussion of the impact of the Tax Act within the ‘Tax Reform’ section below. (2) During the year ended December 31, 2015, the Company established a reserve for material, known tax exposures of $4.9 million , including accrued interest and penalties. The reserve related to tax exposures from prior periods (2010 through 2014). During the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 the Company reversed approximately $0.0 million of its reserve, $0.4 million of its reserve ( $0.3 million of income tax benefits and $0.1 million of accrued interest and penalties) and $1.7 million ( $1.3 million of income tax benefits and $0.4 million of accrued interest and penalties), respectively, because the statute of limitations expired. |
Schedule of Components of Deferred Tax Assets | Years Ended December 26, 2019 December 27, 2018 Deferred tax assets: Investment in consolidated subsidiary NCM LLC (1) $ 218.9 $ 233.5 Share-based compensation 3.0 3.0 Net operating losses 19.2 15.8 Accrued bonus 0.4 0.5 Other 2.2 1.2 Total gross deferred tax assets 243.7 254.0 Valuation allowance (1) (81.6 ) (80.1 ) Total deferred tax assets, net of valuation allowance $ 162.1 $ 173.9 (1) The Company recognized a deferred tax asset in the amount of $ 218.9 million and $ 233.5 million as of 2019 and 2018, respectively, associated with the basis difference in our investment in NCM LLC. However, a portion of the total basis difference will only reverse upon a sale of the Company’s interest in NCM LLC, which the Company expects would result in a capital loss for which no offsetting capital gain is expected. Therefore, as of December 26, 2019 and December 27, 2018 the Company has a valuation allowance in the amount of $ 80.6 million and $ 80.1 million, respectively, against the deferred tax asset to which this portion relates. The change in this portion of the valuation allowance from December 27, 2018 to December 26, 2019 was primarily driven by outside basis differences which do not impact tax expense and thus are not reflected within the rate reconciliation presented above. |
Schedule of Reconciliation of Unrecognized Tax Benefits, Excluding Interest and Penalties |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Related Party Transaction [Line Items] | |
Schedule of Mandatory Distributions to Members | Mandatory distributions for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 are as shown within the table below (in millions). The amount presented within the tables for the distribution paid to AMC for the year ended December 27, 2018 represents only the distribution for the three months ended March 29, 2018 to AMC. AMC’s distribution for the three months ended June 28, 2018 was paid to Cinemark and Regal to accommodate agreements between AMC and each of Cinemark and Regal related to the sale. Further, there was no distribution shown to AMC for the year ended December 26, 2019 or the last six months of 2018 as they were no longer a related party. Years Ended December 26, 2019 December 27, 2018 December 28, 2017 AMC $ — $ 2.2 $ 27.1 Cinemark 37.2 34.3 29.1 Regal 39.1 35.8 28.8 Total founding members 76.3 72.3 85.0 NCM, Inc. 72.5 69.1 75.9 Total $ 148.8 $ 141.4 $ 160.9 |
Schedule of Amounts Due to Founding Members | Amounts due to founding members, net as of December 26, 2019 were comprised of the following (in millions): Cinemark Regal Total Theater access fees and revenue share, net of beverage revenues and other encumbered theater payments $ 2.0 $ 2.5 $ 4.5 Distributions payable to founding members 15.8 16.6 32.4 Integration payments due from founding members (0.1 ) — (0.1 ) Total amounts due to founding members, net $ 17.7 $ 19.1 $ 36.8 Amounts due to founding members, net as of December 27, 2018 were comprised of the following (in millions): Cinemark Regal Total Theater access fees, net of beverage revenues and other encumbered theater payments $ 1.0 $ 1.5 $ 2.5 Distributions payable to founding members 13.7 14.2 27.9 Integration payments due from founding members (0.4 ) — (0.4 ) Total amounts due to founding members, net $ 14.3 $ 15.7 $ 30.0 |
Related Party Founding Members | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions | Following is a summary of the related party transactions between the Company and the founding members (in millions): Years Ended Included in the Consolidated Statements of Income: (1) December 26, 2019 December 27, 2018 December 28, 2017 Revenue: Beverage concessionaire revenue (included in advertising revenue) (2) $ 23.0 $ 28.4 $ 29.9 Operating expenses: Theater access fee and revenue share (3) 56.6 69.0 76.5 Purchase of movie tickets and concession products and rental of theater space (included in selling and marketing costs) (4) 0.4 1.1 2.1 Purchase of movie tickets and concession products and rental of theater space (included in advertising operating costs) 0.1 0.1 0.1 Non-operating expenses: Interest income from notes receivable (included in interest income) (5) 0.2 0.3 0.6 (1) AMC is no longer considered a related party as of July 5, 2018, as described further above. As such, the figures within the table above only include related party activity with AMC for the first six months of 2018 and the year ended December 28, 2017. (2) For the full years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , two of the founding members purchased 60 seconds of on-screen advertising time and one founding member purchased 30 seconds (with all three founding members having a right to purchase up to 90 seconds ) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a 30 second equivalent CPM rate specified by the ESA. (3) Comprised of payments per theater attendee, payments per digital screen with respect to the founding member theaters included in the Company’s network, payments for access to higher quality digital cinema equipment and payments to Cinemark and Regal for their portion of the Platinum Spot revenue for the utilization of the theaters post-showtime in accordance with the 2019 ESA Amendments. (4) Used primarily for marketing to NCM LLC’s advertising clients. (5) Refer to the discussion of the Fathom Events sale under AC JV, LLC transactions below. As of Included in the Consolidated Balance Sheets: December 26, 2019 December 27, 2018 Current portion of note receivable (1) (2) $ — $ 4.2 Interest receivable on notes receivable (included in other current assets) (2) — 0.1 Common unit adjustments, net of amortization and integration payments (included in intangible assets) (3) 620.5 657.5 Current payable to founding members under the TRA (1) (4) 10.3 11.2 Long-term payable to founding members under the TRA (1) (4) 133.5 141.1 (1) AMC is no longer considered a related party as of July 5, 2018, as described further above. As such, the figures within the table above do not include AMC. (2) Refer to the discussion of the Fathom Events sale under AC JV, LLC transactions below. |
Borrowings (Tables)
Borrowings (Tables) - NCM, LLC. | 12 Months Ended |
Dec. 26, 2019 | |
Schedule of Outstanding Debt | The following table summarizes NCM LLC’s total outstanding debt as of December 26, 2019 and December 27, 2018 and the significant terms of its borrowing arrangements: Outstanding Balance as of Borrowings ($ in millions) December 26, 2019 December 27, 2018 Maturity Date Interest Rate Senior secured notes due 2022 $ — $ 400.0 April 15, 2022 6.000% Revolving credit facility 39.0 27.0 June 20, 2023 (1) Term loans 266.6 269.4 June 20, 2025 (1) Senior unsecured notes due 2026 230.0 235.0 August 15, 2026 5.750% Senior secured notes due 2028 400.0 — April 15, 2028 5.875% Total borrowings 935.6 931.4 Less: Debt issuance costs related to term loans and senior notes (9.0 ) (7.8 ) Total borrowings, net 926.6 923.6 Less: current portion of debt (2.7 ) (2.7 ) Carrying value of long-term debt $ 923.9 $ 920.9 (1) The interest rates on the revolving credit facility and term loan are described below. |
Schedule of Annual Maturities on Credit Facility and Senior Notes | Year Amount 2020 $ 2.7 2021 2.7 2022 2.7 2023 41.7 2024 2.7 Thereafter 883.1 Total $ 935.6 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Schedule of Share-Based Compensation Costs | The Company recognized $5.5 million , $7.8 million and $11.2 million for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 , respectively, of share-based compensation expense within Network costs, Selling and marketing costs and Administrative and other costs in the Consolidated Statements of Income as shown in the table below (in millions): Years Ended December 26, 2019 December 27, 2018 December 28, 2017 Share-based compensation costs included in network costs $ 0.4 $ 0.6 $ 1.0 Share-based compensation costs included in selling and marketing costs 1.4 2.5 4.1 Share-based compensation costs included in administrative and other costs 3.7 4.7 6.1 Total share-based compensation costs $ 5.5 $ 7.8 $ 11.2 |
2007 Plan [Member] | |
Summary of Option Award Activity | A summary of option award activity under the 2007 and 2016 Plans as of December 26, 2019 , and changes during the year then ended are presented below: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in millions) Outstanding as of December 28, 2018 1,950,750 $ 16.45 2.0 $ — Granted 650,198 $ 8.00 $ — Forfeited (26,946 ) $ 17.38 $ — Expired (23,904 ) $ 15.19 $ — Outstanding as of December 26, 2019 2,550,098 $ 14.30 3.2 $ — Exercisable as of December 26, 2019 1,899,900 $ 16.45 1.0 $ — Vested and expected to vest as of December 26, 2019 2,527,755 $ 14.35 3.2 $ — |
2007 Plan and 2016 Plan [Member] | |
Summary of Restricted Stock Awards and Restricted Stock Units | A summary of restricted stock award and restricted stock unit activity as of December 26, 2019 , and changes during the year then ended are presented below: Number of Restricted Shares and Restricted Stock Units Weighted Average Grant-Date Fair Value Non-vested balance as of December 28, 2018 1,825,983 $ 11.31 Granted 823,728 $ 7.02 Vested (1) (580,489 ) $ 11.78 Forfeited (282,004 ) $ 14.48 Non-vested balance as of December 26, 2019 1,787,218 $ 8.68 (1) Includes 185,019 vested shares that were withheld to cover tax obligations and were subsequently canceled. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Lease Payments Under Noncancelable Operating Leases | Year Minimum Lease Payments 2020 $ 3.5 2021 3.5 2022 3.7 2023 3.7 2024 3.7 Thereafter 18.6 Total $ 36.7 Less: Imputed interest on future lease payments (11.1 ) Total lease liability as of December 26, 2019 per the Condensed Consolidated Balance Sheet $ 25.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Other Assets | As of December 26, 2019 December 27, 2018 Investment in AC JV, LLC (1) $ 0.9 $ 0.9 Other investments (2) 0.1 2.1 Total $ 1.0 $ 3.0 (1) Refer to Note 9— Related Party Transactions . (2) The Company received equity securities in privately held companies as consideration for a portion of advertising contracts. The equity securities were accounted for under the cost method and represent an ownership of less than 20% . The Company does not exert significant influence on these companies’ operating or financial activities. |
Estimated Fair Values of Company's Financial Instruments | As of December 26, 2019 As of December 27, 2018 Carrying Value Fair Value (1) Carrying Value Fair Value (1) Term Loans $ 266.6 $ 266.9 $ 269.4 $ 261.2 Senior Notes due 2022 — — 400.0 401.8 Senior Notes due 2026 230.0 226.2 235.0 211.0 Senior Notes due 2028 400.0 426.7 — — (1) The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2. |
Fair Values of the Company's Assets | Fair Value Measurements at Reporting Date Using Fair Value As of December 26, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ASSETS: Cash equivalents (1) $ 28.8 $ 16.8 $ 12.0 $ — Short-term marketable securities (2) 17.5 — 17.5 — Long-term marketable securities (2) 7.5 — 7.5 — Total assets $ 53.8 $ 16.8 $ 37.0 $ — Fair Value Measurements at Reporting Date Using Fair Value As of December 27, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ASSETS: Cash equivalents (1) $ 18.2 $ 11.2 $ 7.0 $ — Short-term marketable securities (2) 24.0 — 24.0 — Long-term marketable securities (2) 10.2 — 10.2 — Total assets $ 52.4 $ 11.2 $ 41.2 $ — (1) Cash Equivalents —The Company’s cash equivalents are carried at estimated fair value. Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts and commercial paper with original maturities of three months or less, which are classified as Level 2 and are valued as described below. (2) Short-Term and Long-Term Marketable Securities —The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds, commercial paper and certificates of deposit are valued using third party broker quotes. The value of the Company’s government agency bonds and municipal bonds are derived from quoted market information. The inputs in the valuation are classified as Level 1 if there is an active market for these securities; however, if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper and certificates of deposit is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the years ended December 26, 2019 and December 27, 2018 , there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short term marketable securities is based on the specific identification method. As of December 26, 2019 and December 27, 2018 , there was an inconsequential amount and $0.2 million , respectively, of gross unrealized losses related to individual securities of $6.5 million and $11.8 million , respectively, that had been in a continuous loss position for 12 months or longer. The Company has not recorded an impairment because it has the intention and ability to hold these securities to maturity. |
Schedule of Marketable Securities | As of December 26, 2019 Amortized Cost Basis (in millions) Aggregate Fair Value (in millions) Maturities (1) (in years) MARKETABLE SECURITIES: Short-term U.S. government agency bonds $ 3.5 $ 3.5 0.4 Short-term certificates of deposit 0.9 0.9 0.8 Short-term municipal bonds 1.2 1.2 0.5 Short-term commercial paper: Financial 8.0 7.9 0.3 Industrial 4.0 4.0 0.2 Total short-term marketable securities 17.6 17.5 Long-term municipal bonds Long-term U.S. government agency bonds 4.5 4.5 2.2 Long-term certificates of deposit 3.0 3.0 3.6 Total long-term marketable securities 7.5 7.5 Total marketable securities $ 25.1 $ 25.0 As of December 27, 2018 Amortized Cost Basis (in millions) Aggregate Fair Value (in millions) Maturities (1) (in years) MARKETABLE SECURITIES: Short-term U.S. government agency bonds $ 3.9 $ 3.9 0.5 Short-term U.S. government treasury bonds 0.3 0.3 0.5 Short-term certificates of deposit 3.6 3.6 0.6 Short-term municipal bonds 0.5 0.5 0.1 Short-term commercial paper: Financial 3.8 3.8 0.1 Industrial 12.0 11.9 0.1 Total short-term marketable securities 24.1 24.0 Long-term municipal bonds 1.2 1.3 1.5 Long-term U.S. government agency bonds 6.9 6.8 2.1 Long-term certificates of deposit 2.4 2.1 2.9 Total long-term marketable securities 10.5 10.2 Total marketable securities $ 34.6 $ 34.2 (1) Maturities — Securities available for sale include obligations with various contractual maturity dates some of which are greater than one year. The Company considers the securities to be liquid and convertible to cash within 30 days. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | The Company’s allowance for doubtful accounts and the valuation allowance on deferred tax assets for the years ended December 26, 2019 , December 27, 2018 and December 28, 2017 were as follows (in millions): Years Ended December 26, 2019 December 27, 2018 December 28, 2017 ALLOWANCE FOR DOUBTFUL ACCOUNTS: Balance at beginning of period $ 6.0 $ 6.0 $ 6.3 Provision for bad debt 1.2 1.6 1.1 Write-offs, net (1.0 ) (1.6 ) (1.4 ) Balance at end of period $ 6.2 $ 6.0 $ 6.0 Years Ended December 26, 2019 December 27, 2018 December 28, 2017 VALUATION ALLOWANCE ON DEFERRED TAX ASSETS: Balance at beginning of period $ 80.1 $ 98.1 $ 110.3 Valuation allowance added (1) 1.5 — — Valuation allowance reversed (2) — (18.0 ) (12.2 ) Balance at end of period $ 81.6 $ 80.1 $ 98.1 (1) The increase within the valuation allowance during the year ended December 26, 2019 relates to the establishment of a valuation allowance for state NOLs and investment losses that the Company no longer expects to realize prior to expiration and timing differences between the recognition of available cash distributions for book and tax purposes. (2) The decreases within the valuation allowance during the years ended December 27, 2018 and December 28, 2017 relate to movement within the underlying residual portion of the Investment in NCM LLC deferred tax asset due primarily to timing differences between the recognition of available cash distributions for book and tax purposes. |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following represents selected information from the Company’s unaudited quarterly Consolidated Statements of Income for the years ended December 26, 2019 and December 27, 2018 (in millions, except per share data): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 76.9 $ 110.2 $ 110.5 $ 147.2 Operating expenses 66.0 72.5 70.5 74.5 Operating income 10.9 37.7 40.0 72.7 Consolidated net (loss) income (2.6 ) 21.0 22.8 45.5 Net (loss) income attributable to NCM, Inc. (1.1 ) 8.9 9.2 19.1 (Loss) Earnings per NCM, Inc. share, basic (1) (0.01 ) 0.11 0.12 0.25 (Loss) Earnings per NCM, Inc. share, diluted (1) (0.01 ) 0.11 0.12 0.24 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 80.2 $ 113.7 $ 110.1 $ 137.4 Operating expenses 69.2 73.5 67.8 76.6 Operating income 11.0 40.2 42.3 60.8 Consolidated net (loss) income (3.5 ) 17.0 25.7 41.0 Net (loss) income attributable to NCM, Inc. (1.9 ) 4.2 11.2 16.3 (Loss) Earnings per NCM, Inc. share, basic (1) (0.03 ) 0.05 0.15 0.21 (Loss) Earnings per NCM, Inc. share, diluted (1) (0.03 ) 0.05 0.14 0.21 (1) Earnings per share in each quarter is computed using the weighted-average number of common shares outstanding during that quarter while earnings per share for the full year is computed using the weighted average number of common shares outstanding during the year. |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||
Dec. 26, 2019USD ($)customeritemshares | Dec. 27, 2018USD ($)customeritem | Dec. 28, 2017USD ($)customer | Dec. 28, 2018USD ($) | Dec. 29, 2016USD ($) | |
Accounting Policies [Line Items] | |||||
Operating Lease, Right-of-Use Asset | $ 21,500,000 | ||||
Operating Lease, Liability, Current | $ 1,600,000 | ||||
Agreement With Founding Members, Remaining Term | 19 years 10 months | ||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 0.1 | $ 0 | $ 0 | ||
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | 1.2 | 0.1 | 0 | ||
Common membership units outstanding | shares | 77,568,986 | ||||
Percentage of common membership units outstanding | 48.80% | ||||
Membership units exchangeable into common stock ratio | 100.00% | ||||
Net book value | $ 33,200,000 | $ 33,600,000 | |||
Finite-Lived Intangible Assets, Costs Incured to Renew o Extend, Gross | 600,000 | 0 | |||
Finite-Lived Intangible Assets, Cost Incurred to Renew or Extend | 1,300,000 | 0 | $ 0 | ||
Research and development expense | 3,600,000 | 1,700,000 | 3,600,000 | ||
Loss on write-off of property, plant and equipment | 200,000 | 500,000 | 100,000 | ||
Deferred financing costs | $ 12,900,000 | 12,800,000 | 10,000,000 | $ 12,600,000 | |
Cumulative effect for change in accounting principle | (200,000) | ||||
Restricted Stock and Restricted Stock Units | |||||
Accounting Policies [Line Items] | |||||
Share-based compensation, vesting period | 3 years | ||||
Software And Development Costs | |||||
Accounting Policies [Line Items] | |||||
Net book value | $ 14,100,000 | 17,400,000 | |||
Depreciation expense | $ 8,400,000 | $ 6,700,000 | $ 6,000,000 | ||
Accounts Receivable | Credit Concentration Risk | |||||
Accounting Policies [Line Items] | |||||
Number of advertising agency groups contributing to more than 10% of outstanding gross receivable balance | item | 0 | 0 | |||
Sales Revenue, Net | Customer Concentration Risk | |||||
Accounting Policies [Line Items] | |||||
Number of customers contributing to more than 10% of revenue | customer | 0 | 0 | 0 | ||
NCM, LLC. | |||||
Accounting Policies [Line Items] | |||||
Weighted Average Term, ESA and Affiliate | 17 years 1 month | ||||
Common membership units outstanding | shares | 159,077,355 | ||||
Deferred financing costs | $ 9,000,000 | $ 7,800,000 | |||
Cinemark | |||||
Accounting Policies [Line Items] | |||||
Common membership units outstanding | shares | 39,737,700 | ||||
Percentage of common membership units outstanding | 25.00% | ||||
Regal | |||||
Accounting Policies [Line Items] | |||||
Common membership units outstanding | shares | 41,770,669 | ||||
Percentage of common membership units outstanding | 26.20% | ||||
AMC | |||||
Accounting Policies [Line Items] | |||||
Common membership units outstanding | shares | 0 | ||||
Percentage of common membership units outstanding | 0.00% | ||||
Minimum | Software And Development Costs | |||||
Accounting Policies [Line Items] | |||||
Estimated useful life | 3 years | ||||
Maximum | Software And Development Costs | |||||
Accounting Policies [Line Items] | |||||
Estimated useful life | 5 years | ||||
Accounting Standards Update 2016-02 [Member] | |||||
Accounting Policies [Line Items] | |||||
Operating Lease, Liability, Noncurrent | $ 0 | ||||
Operating Lease, Right-of-Use Asset | 0 | ||||
Operating Lease, Liability, Current | 0 | ||||
Deferred Rent Credit, Noncurrent | $ 0 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Schedule of Receivables) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for doubtful accounts | $ (6.2) | $ (6) |
Total | 170.8 | 149.9 |
Trade accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | 176 | 154 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 1 | $ 1.9 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies (Schedule of Useful Lives) (Details) | 12 Months Ended |
Dec. 26, 2019 | |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 4 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life description | Lesser of lease term or asset life |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies (Changes in Debt Issuance Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Accounting Policies [Abstract] | |||
Beginning balance | $ 12.8 | $ 10 | $ 12.6 |
Debt issuance costs | 4.6 | 6.4 | 0 |
Amortization of debt issuance costs | (2.6) | (2.6) | (2.6) |
Write-off of debt issuance costs | (1.9) | (1) | 0 |
Ending balance | $ 12.9 | $ 12.8 | $ 10 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies (Changes in Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Accounting Policies [Abstract] | |||||||||||
Net income attributable to NCM, Inc. | $ 19.1 | $ 9.2 | $ 8.9 | $ (1.1) | $ 16.3 | $ 11.2 | $ 4.2 | $ (1.9) | $ 36.1 | $ 29.8 | $ 58.3 |
NCM LLC equity issued for purchase of intangible asset | 3.7 | 7.7 | 78.8 | ||||||||
Income tax and other impacts of NCM LLC ownership changes | (0.7) | 7 | 28.6 | ||||||||
NCM, Inc. investment in NCM LLC | (1.7) | 0 | (84.9) | ||||||||
Issuance of shares to founding members | 1.7 | 0 | 84.7 | ||||||||
Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests | $ 39.1 | $ 44.5 | $ 165.5 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies (Effect of Change on Retained Earnings and APIC) (Details) $ in Millions | Dec. 27, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect for change in accounting principle | $ (0.2) |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Significant Accounting Policies (Effect of Change on Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Long-term deferred tax assets, net of valuation allowance | $ 162.1 | $ 173.9 | ||
TOTAL ASSETS | 1,130 | 1,141.8 | ||
Long-term payable to founding members under tax receivable agreement | 183.8 | 195.6 | ||
Total liabilities | 1,251.2 | 1,231 | ||
Additional paid in capital (deficit) | (209.2) | (215.2) | ||
Retained earnings (distributions in excess of earnings) | (171.1) | (153.6) | ||
Total equity/(deficit) | (121.2) | (89.2) | $ (74.8) | $ (232.2) |
TOTAL LIABILITIES AND EQUITY/DEFICIT | 1,130 | 1,141.8 | ||
Deferred tax assets, valuation allowance | $ 81.6 | $ 80.1 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Significant Accounting Policies (Effect of Change on Statement of Income) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Gain on re-measurement of the payable to founding members under the TRA | $ 1.1 | $ (3.8) | $ (192.2) | ||||||||
Total non-operating expenses | 62.2 | 50.6 | (140.9) | ||||||||
INCOME BEFORE INCOME TAXES | 99.1 | 103.7 | 294.8 | ||||||||
Income tax expense | 12.4 | 23.5 | 180.3 | ||||||||
Consolidated net income | 86.7 | 80.2 | 114.5 | ||||||||
(Loss) Net income attributable to NCM, Inc. | $ 19.1 | $ 9.2 | $ 8.9 | $ (1.1) | $ 16.3 | $ 11.2 | $ 4.2 | $ (1.9) | $ 36.1 | $ 29.8 | $ 58.3 |
Basic (in usd per share) | $ 0.25 | $ 0.12 | $ 0.11 | $ (0.01) | $ 0.21 | $ 0.15 | $ 0.05 | $ (0.03) | $ 0.47 | $ 0.39 | $ 0.89 |
Diluted (in usd per share) | $ 0.24 | $ 0.12 | $ 0.11 | $ (0.01) | $ 0.21 | $ 0.14 | $ 0.05 | $ (0.03) | $ 0.46 | $ 0.37 | $ 0.48 |
Basis of Presentation and Su_12
Basis of Presentation and Summary of Significant Accounting Policies (Effect of Change on Statements of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Consolidated net income | $ 86.7 | $ 80.2 | $ 114.5 |
Deferred income tax expense | 12.1 | 23.3 | 181.9 |
Non-cash loss (gain) on re-measurement of the payable to founding members under the TRA | 1.1 | (3.8) | (192.2) |
Net cash provided by operating activities | 143.6 | 150.3 | 138.9 |
Decrease within activity of APIC | $ 0.7 | $ (9.5) | $ 23.6 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Disaggregation of Revenue [Line Items] | |||
ContentSegmentSeconds | 90 seconds | ||
Revenue | $ 444.8 | $ 441.4 | $ 426.1 |
Make-good reserve | $ 8.7 | 8 | |
Payment terms | 30 days | ||
Unbilled contracts receivable | $ 8 | 6 | |
Barter Transaction Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1.8 | 5.9 | 0.8 |
Costs of goods and services sold | $ 2.1 | $ 5 | $ 1.4 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 444.8 | $ 441.4 | $ 426.1 |
National advertising revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 324.2 | 312 | 296.3 |
Local Advertising Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 66.9 | 70.7 | 88.8 |
Regional Advertising Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 24.7 | 27.3 | 11.1 |
Founding member advertising revenue from beverage concessionaire agreements | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 29 | $ 31.4 | $ 29.9 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Changes in Deferred Revenue) (Details) $ in Millions | 12 Months Ended |
Dec. 26, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at beginning of year | $ (7.3) |
Performance obligations satisfied | 7.3 |
New contract liabilities | (7.6) |
Balance at end of year | $ (7.6) |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to NCM, Inc. | $ 19.1 | $ 9.2 | $ 8.9 | $ (1.1) | $ 16.3 | $ 11.2 | $ 4.2 | $ (1.9) | $ 36.1 | $ 29.8 | $ 58.3 |
Net income attributable to NCM, Inc. following conversion of dilutive membership units (net of estimated taxes of $0.0, $22.2 and $42.5) (in millions) | $ 36.1 | $ 58 | $ 72 | ||||||||
Basic (in shares) | 77,345,577 | 76,859,087 | 65,226,817 | ||||||||
Add: Dilutive effect of stock options, restricted stock, and exchangeable NCM LLC common membership units | 436,990 | 80,544,823 | 85,840,453 | ||||||||
Diluted (in shares) | 77,782,567 | 157,403,910 | 151,067,270 | ||||||||
Basic (in usd per share) | $ 0.25 | $ 0.12 | $ 0.11 | $ (0.01) | $ 0.21 | $ 0.15 | $ 0.05 | $ (0.03) | $ 0.47 | $ 0.39 | $ 0.89 |
Diluted (in usd per share) | $ 0.24 | $ 0.12 | $ 0.11 | $ (0.01) | $ 0.21 | $ 0.14 | $ 0.05 | $ (0.03) | $ 0.46 | $ 0.37 | $ 0.48 |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Earnings Per Share [Abstract] | |||
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units, Tax | $ 0 | $ 22.2 | $ 42.3 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Effective tax rate | 44.10% | 75.60% | |
Stock Options And Non-Vested Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the calculation of diluted weighted average shares | 2,568,418 | 2,141,535 | 2,583,196 |
Common Membership Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the calculation of diluted weighted average shares | 81,450,384 |
Property and Equipment (Summary
Property and Equipment (Summary of Property and Equipment) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (70.7) | $ (62.5) |
Subtotal | 25.2 | 30.7 |
Construction in progress | 8 | 2.9 |
Total property and equipment | 33.2 | 33.6 |
Equipment, Computer Hardware And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 93.5 | 90.8 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 2.4 | $ 2.4 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 28, 2019 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Common Membership Units Issued | 3,736,860 | ||||
Common Membership Units Returned | 915,150 | ||||
Payments from related parties, theater payments | $ 21,700,000 | $ 22,700,000 | $ 12,900,000 | ||
Intangible assets, net of accumulated amortization | 643,700,000 | 684,500,000 | 717,200,000 | ||
Amortization expense | 26,700,000 | 27,300,000 | 26,600,000 | ||
Related Party Founding Members | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Payments from related parties, theater payments | 800,000 | 17,200,000 | $ 12,900,000 | ||
Intangible assets, net of accumulated amortization | $ 620,500,000 | 657,500,000 | |||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Percentage increase (decrease) in theater attendance for Common Unit adjustment to occur | (2.00%) | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Percentage increase (decrease) in theater attendance for Common Unit adjustment to occur | 2.00% | ||||
NCM, LLC. | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Increase (decrease) in intangible assets, net | $ 7,600,000 | $ 0 | |||
NCM, LLC. | Computer Software, Intangible Asset | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net of accumulated amortization | $ 100,000 | $ 100,000 | |||
Weighted average remaining life | 6 months | 1 year 6 months | |||
NCM, LLC. | AMC and Cinemark | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Increase (decrease) in intangible assets, net | $ (22,300,000) | $ (21,400,000) | |||
Payments from related parties, theater payments | 21,700,000 | 22,700,000 | |||
NCM, LLC. | Related Party Founding Members | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net of accumulated amortization | $ 620,500,000 | $ 657,500,000 | |||
Weighted average remaining life | 20 years | 18 years 2 months 17 days | |||
NCM, LLC. | Network Affiliates | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net of accumulated amortization | $ 23,100,000 | $ 26,900,000 | |||
Weighted average remaining life | 5 years 5 months | 10 years |
Intangible Assets (Summary of I
Intangible Assets (Summary of Intangible Asset's Activity) (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
AccAmort,InangibleAsset,Affiliates | $ 500,000 | ||
Gross carrying amount, beginning balance | 857,200,000 | $ 862,600,000 | |
Accumulated amortization, beginning balance | (172,700,000) | (145,400,000) | |
Total intangible assets, net, beginning balance | 684,500,000 | 717,200,000 | |
Additions | 8,900,000 | 16,000,000 | |
Other Intangible Assets, Net | (700,000) | ||
Disposal Group, Including Discontinued Operation, Intangible Assets | (1,200,000) | ||
Amortization | (26,700,000) | (27,300,000) | $ (26,600,000) |
Integration and other encumbered theater payments | (22,300,000) | (21,400,000) | |
Gross carrying amount, ending balance | 842,600,000 | 857,200,000 | 862,600,000 |
Accumulated amortization, ending balance | (198,900,000) | (172,700,000) | (145,400,000) |
Total intangible assets, net, ending balance | $ 643,700,000 | $ 684,500,000 | $ 717,200,000 |
Intangible Assets (Summary of_2
Intangible Assets (Summary of Intangible Asset's Activity) (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 28, 2019 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Common membership units issued (in shares) | 3,736,860 | ||||
Common Membership Units Returned | 915,150 | ||||
Purchase of intangible assets from affiliate | $ 0 | $ 0.1 | $ 2.1 | ||
Payments from related parties, theater payments | 21.7 | 22.7 | $ 12.9 | ||
NCM, LLC. | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Common membership units issued, net (in shares) | 1,044,665 | 2,821,710 | |||
Increase (decrease) in intangible assets, net | $ 7.6 | $ 0 | |||
Purchase of intangible assets from affiliate | 0 | ||||
NCM, LLC. | AMC and Cinemark | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Increase (decrease) in intangible assets, net | (22.3) | (21.4) | |||
Payments from related parties, theater payments | $ 21.7 | $ 22.7 |
Intangible Assets (Summary of E
Intangible Assets (Summary of Estimated Aggregate Amortization Expense) (Details) $ in Millions | Dec. 26, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2018 | $ 24.1 |
2019 | 24 |
2020 | 23.7 |
2021 | 23.3 |
2022 | $ 23.3 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Payables and Accruals [Abstract] | ||
Make-good reserve | $ 8.7 | $ 8 |
Accrued interest | 11.4 | 10.3 |
Deferred rent | 0 | 0.2 |
Other accrued expenses | 2 | 3.2 |
Total accrued expenses | $ 22.1 | $ 21.7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 01, 2015 | Jan. 01, 2039 | Jan. 01, 2037 | Dec. 31, 2036 | Dec. 29, 2016 | |
Income Taxes [Line Items] | ||||||||
Deferred Tax Assets, Valuation Allowance, Net | $ (80.6) | |||||||
RelatedPartyTRAPayment,Cinemark | $ 3.7 | $ 4.6 | ||||||
Percentage of cash savings related to taxes | 90.00% | 90.00% | ||||||
Loss (gain) on re-measurement of the payable to founding members under the TRA | $ 1.1 | (3.8) | $ (192.2) | |||||
U.S. federal statutory rate | 21.00% | 35.00% | ||||||
Integration payments | $ 0.1 | $ 0.4 | ||||||
Terminating exclusion of performance-based compensation per employee per year limitation | $ 1 | |||||||
Blended state and federal tax rate | 25.38% | 38.58% | ||||||
Reduction in payable to founding members under the tax receivable agreement | $ 191 | |||||||
Reduction in net deferred tax asset | 92.2 | |||||||
Net operating loss carryforwards | $ 72.2 | $ 25.2 | $ 47 | |||||
Deferred Tax Assets, Operating Loss Carryforwards | 19.2 | 15.8 | ||||||
Unrecognized tax benefits including income tax accrued interest and penalties | $ 4.9 | |||||||
Reversal of unrecognized tax benefits | 0.3 | $ 1.3 | ||||||
Reversal of accrued interest and penalties | 0.1 | 0.4 | ||||||
RelatedPartyTRAPayment,Regal | 6.7 | 8.4 | ||||||
RelatedPartyTRAPayment,AMC | 5.4 | |||||||
Non-Operating Income [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Gain on reduction of payable to founding members under tax receivable agreement | 191 | |||||||
Related Party Founding Members | ||||||||
Income Taxes [Line Items] | ||||||||
Payments to affiliates for tax sharing agreement | $ 18.8 | |||||||
Related Party Founding Members | Tax Year 2016 | ||||||||
Income Taxes [Line Items] | ||||||||
Payments to affiliates for tax sharing agreement | $ 18.4 | |||||||
Related Party Founding Members | Tax Year 2017 | ||||||||
Income Taxes [Line Items] | ||||||||
Payments to affiliates for tax sharing agreement | $ 14.8 | |||||||
Federal | Minimum | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax examination, year under examination | 2016 | |||||||
Operating loss carryforward, expiration date | Dec. 31, 2034 | |||||||
Federal | Maximum | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax examination, year under examination | 2018 | |||||||
Operating loss carryforward, expiration date | Dec. 31, 2037 | |||||||
State | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss carryforwards | $ 79.7 | $ 8.4 | ||||||
Deferred Tax Assets, Operating Loss Carryforwards | $ 71.3 | |||||||
State | Minimum | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax examination, year under examination | 2015 | |||||||
Operating loss carryforward, expiration date | Dec. 31, 2022 | |||||||
State | Maximum | ||||||||
Income Taxes [Line Items] | ||||||||
Income tax examination, year under examination | 2018 | |||||||
Operating loss carryforward, expiration date | Dec. 31, 2039 | |||||||
Research And Experimentation Tax Credit Carryforward | Federal and State | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss carryforwards | $ 1.5 | |||||||
Research And Experimentation Tax Credit Carryforward | Federal and State | Minimum | ||||||||
Income Taxes [Line Items] | ||||||||
Operating loss carryforward, expiration date | Jan. 1, 2030 | |||||||
Research And Experimentation Tax Credit Carryforward | Federal and State | Maximum | ||||||||
Income Taxes [Line Items] | ||||||||
Operating loss carryforward, expiration date | Dec. 31, 2039 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current Federal | $ 0 | $ (0.3) | $ (1.6) |
Current State | 0.3 | 0.5 | 0 |
Total current income tax (benefit)/expense | 0.3 | 0.2 | (1.6) |
Deferred Federal | 10 | 13.2 | 142.1 |
Deferred State | 2.1 | 10.1 | 39.8 |
Total deferred income tax expense | 12.1 | 23.3 | 181.9 |
Total income tax provision | $ 12.4 | $ 23.5 | $ 180.3 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 20.8 | $ 21.8 | $ 102.6 |
Less: Noncontrolling interests | (10.6) | (10.6) | (19.7) |
Income attributable to NCM, Inc. | 10.2 | 11.2 | 82.9 |
Current year change to enacted federal and state rate (1) | (0.7) | 6.5 | 92.2 |
State and local income taxes, net of federal benefit | 1.7 | 2.6 | 8.7 |
NCM LLC income taxes | 0.2 | 0.4 | 0.2 |
Share-based compensation | 0.3 | 1.1 | 0.8 |
Uncertain tax positions (2) | 0 | (0.4) | (1.7) |
Change in the valuation allowance | 0.9 | 0.5 | (4.2) |
NCM LLC membership unit issuance to NCM, Inc. | 0.2 | 0.2 | 0.5 |
Executive compensation | 0.4 | 1.4 | 0.4 |
Other | (0.8) | 0 | 0.5 |
Total income tax provision | $ 12.4 | $ 23.5 | $ 180.3 |
Income Taxes (Schedule of Rec_2
Income Taxes (Schedule of Reconciliation of Provision for Income Taxes) (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits including income tax accrued interest and penalties | $ 4.9 | |||
Uncertain tax positions (reversal) | $ 0 | $ 0.4 | $ 1.7 | |
Reversal of unrecognized tax benefits | 0.3 | 1.3 | ||
Reversal of accrued interest and penalties | $ 0.1 | $ 0.4 |
Income Taxes (Schedule of Com_2
Income Taxes (Schedule of Components of Deferred Tax Assets) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Income Tax Disclosure [Abstract] | ||
Investment in consolidated subsidiary NCM LLC | $ 218.9 | $ 233.5 |
Share-based compensation | 3 | 3 |
Net operating losses | 19.2 | 15.8 |
Accrued bonus | 0.4 | 0.5 |
Other | 2.2 | 1.2 |
Total gross deferred tax assets | 243.7 | 254 |
Valuation allowance | (81.6) | (80.1) |
Total deferred tax assets, net of valuation allowance | $ 162.1 | $ 173.9 |
Income Taxes (Schedule of Com_3
Income Taxes (Schedule of Components of Deferred Tax Assets) (Additional Information) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets recognized | $ 218.9 | $ 233.5 |
Valuation allowance and reserves | $ 81.6 | $ 80.1 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | 12 Months Ended | |
Dec. 26, 2019item$ / sharesshares | Dec. 27, 2018$ / sharesshares | |
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 77,568,986 | 76,976,398 |
Common stock, shares outstanding (in shares) | 77,568,986 | 76,976,398 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Number of votes per common share | item | 1 | |
NCM, LLC. | Related Party Founding Members | ||
Class of Stock [Line Items] | ||
Term of advertising services | 30 years |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 31, 2018 | Dec. 31, 2015 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 01, 2015 | Dec. 26, 2013 | |
Related Party Transaction [Line Items] | |||||||
On-screen advertising time to satisfy agreement obligations, in seconds | 30 seconds | 30 seconds | 30 seconds | ||||
Percentage of cash savings related to taxes | 90.00% | 90.00% | |||||
Cash payment due to founding members/managing member | $ 32,400,000 | $ 27,900,000 | |||||
Membership units exchangeable into common stock ratio | 100.00% | ||||||
NetworkAffiliateTransactionsRelatedParty | $ 600,000 | 500,000 | $ 500,000 | ||||
Network costs | 13,500,000 | 13,300,000 | 15,800,000 | ||||
RelatedPartyTRAPayment,Regal | 3,700,000 | 4,600,000 | |||||
AC JV, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Investment in AC JV, LLC | 900,000 | 900,000 | |||||
Cash distributions received from non-consolidated entities | 400,000 | 200,000 | 300,000 | ||||
Related Party Founding Members | |||||||
Related Party Transaction [Line Items] | |||||||
Cash payment due to founding members/managing member | 32,400,000 | ||||||
Promissory notes receivable from founding members | 0 | $ 5,600,000 | |||||
AMC | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from sale of common stock | 0 | ||||||
Gain (loss) from equity transaction investment due to change in ownership interest in NCM LLC | $ 0 | ||||||
Common stock, shares sold (in shares) | 1,000,000 | 14,800,000 | |||||
Cash dividends on shares of NMC Inc | $ 300,000 | 100,000 | |||||
Sale of membership units (in shares) | 21,477,480 | ||||||
AMC | AC JV, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 32.00% | ||||||
Promissory notes receivable from founding members | $ 8,300,000 | ||||||
Regal | |||||||
Related Party Transaction [Line Items] | |||||||
Cash payment due to founding members/managing member | $ 16,600,000 | 14,200,000 | |||||
Regal | AC JV, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 32.00% | ||||||
Promissory notes receivable from founding members | $ 8,300,000 | ||||||
Cinemark | |||||||
Related Party Transaction [Line Items] | |||||||
Cash payment due to founding members/managing member | 15,800,000 | 13,700,000 | |||||
Cinemark | AC JV, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 32.00% | ||||||
Promissory notes receivable from founding members | $ 8,300,000 | ||||||
NCM, LLC. | AC JV, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 4.00% | ||||||
Investment in AC JV, LLC | 900,000 | 900,000 | |||||
Equity in earnings of non-consolidated entities | $ 400,000 | $ 200,000 | $ 300,000 | ||||
NCM, LLC. | Related Party Founding Members | AC JV, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Promissory notes receivable from founding members | $ 25,000,000 | ||||||
Interest rate on notes receivable | 5.00% | ||||||
NCM, LLC. | AMC | |||||||
Related Party Transaction [Line Items] | |||||||
Membership units exchangeable into common stock ratio | 100.00% | ||||||
Number Of Days Utilized Within Membership Unit Redemption Payment Calculation | 3 days | ||||||
Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
On-screen advertising time to satisfy agreement obligations, in seconds | 30 seconds | ||||||
Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
On-screen advertising time to satisfy agreement obligations, in seconds | 60 seconds |
Related Party Transactions (Sum
Related Party Transactions (Summary of Transactions Between the Company and the Founding Members Included in Statements of Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Related Party Transaction [Line Items] | |||
Revenue | $ 444.8 | $ 441.4 | $ 426.1 |
Selling and marketing costs | 64.9 | 66.5 | 72 |
Administrative and other costs | 43.8 | 48.3 | 37.9 |
Related Party Founding Members | |||
Related Party Transaction [Line Items] | |||
Revenue | 23 | 28.4 | 29.9 |
Theater access fee | 56.6 | 69 | 76.5 |
Selling and marketing costs | 0 | 1.1 | 2.1 |
Advertising operating costs | 0 | 0.1 | 0.1 |
Interest income from notes receivable (included in interest income) | 0 | 0.3 | 0.6 |
Beverage Concessionaire | Related Party Founding Members | |||
Related Party Transaction [Line Items] | |||
Revenue | $ 0 | $ 28.4 | $ 29.9 |
Related Party Transactions (S_2
Related Party Transactions (Summary of Transactions Between the Company and the Founding Members Included in Statements of Income) (Additional Information) (Details) | 5 Months Ended | 6 Months Ended | 12 Months Ended | |
Jul. 02, 2015 | Dec. 31, 2015 | Dec. 26, 2019 | Dec. 27, 2018 | |
Related Party Transaction [Line Items] | ||||
On-screen advertising time purchased, in seconds | 60 seconds | |||
On-screen advertising time to satisfy agreement obligations, in seconds | 30 seconds | 30 seconds | 30 seconds | |
One Founding Members [Member] | ||||
Related Party Transaction [Line Items] | ||||
On-screen advertising time purchased, in seconds | 30 seconds | 30 seconds | 30 seconds | |
Two Founding Members [Member] | ||||
Related Party Transaction [Line Items] | ||||
On-screen advertising time purchased, in seconds | 60 seconds | 60 seconds | 60 seconds | |
Maximum | ||||
Related Party Transaction [Line Items] | ||||
On-screen advertising time to satisfy agreement obligations, in seconds | 60 seconds | |||
On-screen advertising time which founding members have right to purchase, in seconds | 90 seconds | 90 seconds | 90 seconds | |
Minimum | ||||
Related Party Transaction [Line Items] | ||||
On-screen advertising time to satisfy agreement obligations, in seconds | 30 seconds |
Related Party Transactions (S_3
Related Party Transactions (Summary of Transactions Between the Company and the Founding Members Included in Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 |
Related Party Transaction [Line Items] | |||
Current portion of notes receivable - founding members | $ 0 | $ 5.6 | |
Intangible assets, net of accumulated amortization | 643.7 | 684.5 | $ 717.2 |
Current payable to founding members under tax receivable agreement | 14.2 | 15.5 | |
Long-term payable to founding members under tax receivable agreement | 183.8 | 195.6 | |
Related Party Founding Members | |||
Related Party Transaction [Line Items] | |||
Current portion of notes receivable - founding members | 0 | 4.2 | |
Interest receivable on notes receivable (included in other current assets) | 0 | 0.1 | |
Intangible assets, net of accumulated amortization | 620.5 | 657.5 | |
Current payable to founding members under tax receivable agreement | 10.3 | 11.2 | |
Long-term payable to founding members under tax receivable agreement | $ 133.5 | $ 141.1 |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Mandatory Distributions to Members) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | $ 148.8 | $ 141.4 | $ 160.9 |
AMC | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | 0 | 2.2 | 27.1 |
Cinemark | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | 37.2 | 34.3 | 29.1 |
Regal | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | 39.1 | 35.8 | 28.8 |
Related Party Founding Members | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | 76.3 | 72.3 | 85 |
NCM Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | $ 72.5 | $ 69.1 | $ 75.9 |
Related Party Transactions (S_4
Related Party Transactions (Schedule of Amounts Due to Founding Members) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Related Party Transaction [Line Items] | ||
Theater access fees and revenue share, net of beverage revenues and other encumbered theater payments | $ 4.5 | $ 2.5 |
Distributions payable to founding members | 32.4 | 27.9 |
Integration payments due from founding members | (0.1) | (0.4) |
Total amounts due to founding members, net | 36.8 | 30 |
Cinemark | ||
Related Party Transaction [Line Items] | ||
Theater access fees and revenue share, net of beverage revenues and other encumbered theater payments | 2 | 1 |
Distributions payable to founding members | 15.8 | 13.7 |
Integration payments due from founding members | (0.1) | (0.4) |
Total amounts due to founding members, net | 17.7 | 14.3 |
Regal | ||
Related Party Transaction [Line Items] | ||
Theater access fees and revenue share, net of beverage revenues and other encumbered theater payments | 2.5 | 1.5 |
Distributions payable to founding members | 16.6 | 14.2 |
Integration payments due from founding members | 0 | 0 |
Total amounts due to founding members, net | $ 19.1 | $ 15.7 |
Borrowings (Schedule of Outstan
Borrowings (Schedule of Outstanding Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 26, 2019 | Apr. 15, 2023 | Nov. 07, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | Aug. 19, 2016 | Apr. 27, 2012 | |
Debt Instrument [Line Items] | ||||||||
Less: Debt issuance costs related to term loans and senior notes | $ (12.9) | $ (12.8) | $ (10) | $ (12.6) | ||||
Long-term Debt | 926.6 | 923.6 | ||||||
Less: current portion of debt | (2.7) | (2.7) | ||||||
Carrying value of long-term debt | 923.9 | 920.9 | ||||||
Interest Rate | 105.875% | 101.00% | ||||||
SeniorSecuredNotesDue2028 | 400 | |||||||
NCM, LLC. | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Balance | 935.6 | 931.4 | ||||||
Less: Debt issuance costs related to term loans and senior notes | (9) | (7.8) | ||||||
Long-term Debt | 935.6 | |||||||
NCM, LLC. | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Balance | $ 39 | 27 | ||||||
Maturity date | Jun. 20, 2023 | |||||||
NCM, LLC. | Term loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Balance | $ 266.6 | 269.4 | ||||||
Maturity date | Jun. 20, 2025 | |||||||
NCM, LLC. | Senior secured notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Balance | $ 0 | 400 | ||||||
Maturity date | Apr. 15, 2022 | |||||||
Interest Rate | 6.00% | 6.00% | ||||||
NCM, LLC. | Senior unsecured notes due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Balance | $ 230 | $ 235 | ||||||
Maturity date | Aug. 15, 2026 | |||||||
Interest Rate | 5.75% | 5.75% | ||||||
NCM, LLC. | Senior Secured Notes Due Two Zero Two Eight [Member] [Domain] | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Balance | $ 400 | |||||||
Maturity date | Apr. 15, 2028 | |||||||
Interest Rate | 5.875% |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 26, 2019 | Jun. 27, 2019USD ($) | Dec. 26, 2019USD ($) | Dec. 27, 2018USD ($) | Dec. 28, 2017USD ($) | Apr. 15, 2023 | Nov. 07, 2019 | Aug. 19, 2016USD ($) | May 26, 2016USD ($) | Apr. 27, 2012USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Cash and cash equivalents | $ 55,900,000 | $ 41,400,000 | ||||||||
Stated interest rate | 105.875% | 101.00% | ||||||||
Write off of Deferred Debt Issuance Cost | 1,900,000 | 1,000,000 | $ 0 | |||||||
Redemption Premium | $ 4,000,000 | |||||||||
RedemptionAggregate,Notes2028 | 0.00% | |||||||||
Repayments of term loan facility | $ 2,700,000 | 270,700,000 | $ 0 | |||||||
AggregateRemainingofPrincipal,Notes2028 | 100.00% | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Cash and cash equivalents | $ 100,000,000 | |||||||||
NCM, LLC. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, carrying value | $ 935,600,000 | 931,400,000 | ||||||||
Net total leverage ratio, covenant | 6.25 | |||||||||
Net senior secured leverage ratio | 4.50 | |||||||||
NCM, LLC. | Senior Secured Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Net Total Leverage Ratio | 4 | |||||||||
NCM, LLC. | Senior secured notes due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, carrying value | $ 0 | 400,000,000 | ||||||||
Maturity date | Apr. 15, 2022 | |||||||||
Debt instrument face amount | $ 400,000,000 | |||||||||
Stated interest rate | 6.00% | 6.00% | ||||||||
Debt instrument, frequency of periodic payment | The Notes due 2022 pay interest semi-annually in arrears on April 15 and October 15 of each year, which commenced October 15, 2012. | |||||||||
Debt instrument issued percentage of face value | 100.00% | |||||||||
NCM, LLC. | Senior unsecured notes due 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, carrying value | $ 230,000,000 | 235,000,000 | ||||||||
Maturity date | Aug. 15, 2026 | |||||||||
Debt instrument face amount | $ 250,000,000 | |||||||||
Stated interest rate | 5.75% | 5.75% | ||||||||
Debt instrument, frequency of periodic payment | The Notes due 2026 pay interest semi-annually in arrears on February 15 and August 15 of each year, which commenced on February 15, 2017. | |||||||||
Debt instrument issued percentage of face value | 100.00% | |||||||||
Repurchase amount | $ 5,000,000 | 15,000,000 | ||||||||
Nonoperating gain (loss) related to debt issuance costs | $ 300,000 | 0.6 | ||||||||
NCM, LLC. | Senior unsecured notes due 2026 | Prior to August 15, 2021 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption description | NCM LLC may redeem all or any portion of the Notes due 2026 prior to August 15, 2021, at once or over time, at 100% of the principal amount plus the applicable make-whole premium, plus accrued and unpaid interest, if any, to the redemption date. | |||||||||
NCM, LLC. | Senior unsecured notes due 2026 | On or After August 15, 2021 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption description | NCM LLC may redeem all or any portion of the Notes due 2026, at once or over time, on or after August 15, 2021 at specified redemption prices, plus accrued and unpaid interest, if any, to the redemption date. | |||||||||
NCM, LLC. | Senior unsecured notes due 2026 | Prior to August 15, 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption description | In addition, at any time prior to August 15, 2019, NCM LLC may on any one or more occasions redeem up to 35% of the original aggregate principal amount of Notes due 2026 from the net proceeds of certain equity offerings at a redemption price equal to 105.750% of the principal amount of the Notes due 2026 redeemed, plus accrued and unpaid interest, if any to the redemption date. | |||||||||
NCM, LLC. | Senior Secured Notes Due Two Zero Two Eight [Member] [Domain] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, carrying value | $ 400,000,000 | |||||||||
Maturity date | Apr. 15, 2028 | |||||||||
Stated interest rate | 5.875% | |||||||||
NCM, LLC. | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Net senior secured leverage ratio | 5.50 | |||||||||
NCM, LLC. | Term loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, carrying value | $ 266,600,000 | 269,400,000 | ||||||||
Maturity date | Jun. 20, 2025 | |||||||||
Weighted-average interest rate | 4.80% | |||||||||
Amortization rate | 1.00% | |||||||||
NCM, LLC. | Term loans | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate, percent | 2.75% | 3.00% | ||||||||
NCM, LLC. | Term loans | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate, percent | 1.75% | 2.00% | ||||||||
NCM, LLC. | Senior Secured Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior secured leverage ratio | 300.00% | |||||||||
Net total leverage ratio, covenant | 6.25 | |||||||||
Net senior secured leverage ratio | 4.50 | |||||||||
Debt issuance costs | $ 6,500,000 | |||||||||
Nonoperating gain (loss) related to debt issuance costs | $ (1,200,000) | |||||||||
NCM, LLC. | Senior Secured Credit Facility [Member] | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Net senior secured leverage ratio | 5.50 | |||||||||
NCM, LLC. | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing amount of credit facility | $ 175,000,000 | $ 175,000,000 | ||||||||
Debt Instrument, carrying value | $ 39,000,000 | $ 27,000,000 | ||||||||
Maturity date | Jun. 20, 2023 | |||||||||
Remaining borrowing capacity of credit facility | $ 132,400,000 | |||||||||
Unused line fee, percent | 0.50% | |||||||||
Weighted-average interest rate | 4.40% | |||||||||
NCM, LLC. | Revolving credit facility | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate, percent | 2.00% | |||||||||
NCM, LLC. | Revolving credit facility | LIBOR [Member] | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate, percent | 2.25% | |||||||||
NCM, LLC. | Revolving credit facility | LIBOR [Member] | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate, percent | 1.75% | |||||||||
NCM, LLC. | Revolving credit facility | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate, percent | 1.00% | |||||||||
NCM, LLC. | Revolving credit facility | Base Rate [Member] | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate, percent | 1.25% | |||||||||
NCM, LLC. | Revolving credit facility | Base Rate [Member] | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate, percent | 0.75% | |||||||||
NCM, LLC. | Revolving credit facility | Letters of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Remaining borrowing capacity of credit facility | $ 3,600,000 | |||||||||
NCM, LLC. | Senior Unsecured Notes Due Two Zero Two Eight [Domain] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted-average interest rate | 5.90% | |||||||||
Change of Control | NCM, LLC. | Senior unsecured notes due 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption price percentage | 101.00% | |||||||||
Change of Control | NCM, LLC. | Senior Unsecured Notes Due Two Zero Two Eight [Domain] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption price percentage | 100.00% |
Borrowings (Schedule of Annual
Borrowings (Schedule of Annual Maturities on Credit Facility and Senior Notes) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Debt Instrument [Line Items] | ||
Total | $ 926.6 | $ 923.6 |
NCM, LLC. | ||
Debt Instrument [Line Items] | ||
2019 | 2.7 | |
2020 | 2.7 | |
2021 | 2.7 | |
2022 | 41.7 | |
2023 | 2.7 | |
Thereafter | 883.1 | |
Total | $ 935.6 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 26, 2013 | Dec. 27, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for issuance | 4,400,000 | ||||
Common stock available for grants | 1,361,342 | ||||
Achievement of percentage in performance based restricted stock | 100.00% | ||||
Recognized share-based compensation expense | $ 5,500,000 | $ 7,800,000 | $ 11,200,000 | ||
Capitalized share-based compensation expense | 200,000 | 200,000 | 300,000 | ||
Income tax benefit from share-based compensation | $ 700,000 | 1,700,000 | 3,000,000 | ||
Weighted average remaining period over which unrecognized compensation costs will be recognized | 2 years 7 months 2 days | ||||
Number of additional restricted stock issued under satisfying maximum performance criteria | 510,681 | ||||
Number of restricted stock and restricted stock units expected to vest, after consideration of expected forfeitures of shares | 1,453,361 | ||||
2007 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value of granted options | $ 8 | ||||
Unvested Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to non-vested options | $ 400,000 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to non-vested options | $ 4,800,000 | ||||
Weighted average remaining period over which unrecognized compensation costs will be recognized | 1 year 8 months | ||||
Fair value of awards vested | $ 6,800,000 | 15,500,000 | $ 17,300,000 | ||
Accrued dividend | $ 1,600,000 | $ 1,600,000 | |||
Vesting period | 3 years | ||||
Vesting percentage for year | 33.33% | ||||
Vesting description | The Company has issued time-based restricted stock to its employees which vests over a three-year period with one-third vesting on each anniversary of the date of grant and performance-based restricted stock which vests following a three-year measurement period to the extent that the Company achieves specified non-GAAP targets at the end of the measurement period. | ||||
Measurement period | 3 years | ||||
Weighted average grant date fair value of granted options | $ 7.02 | $ 6.65 | $ 14.34 | ||
Restricted Stock [Member] | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Estimated annual forfeiture rate, percentage | 2.00% | ||||
Restricted Stock [Member] | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Estimated annual forfeiture rate, percentage | 6.00% | ||||
Stock Options [Member] | 2007 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | 0 | 0 | 0 |
Intrinsic value of options exercised | $ 0 | $ 0 | $ 100,000 | ||
Stock Options [Member] | 2007 Plan [Member] | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options contractual term | 10 years | ||||
Stock Options [Member] | 2007 Plan [Member] | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options contractual term | 15 years | ||||
Restricted Stock and Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend payments during period upon vesting of stock units | $ 900,000 | $ 2,100,000 | $ 2,100,000 | ||
Vesting period | 3 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Share-Based Compensation Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 6 years 9 months 18 days | ||
Total share-based compensation costs | $ 5.5 | $ 7.8 | $ 11.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 36.60% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 8.90% | ||
Network Costs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation costs | $ 0.4 | 0.6 | 1 |
Selling and Marketing Costs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation costs | 1.4 | 2.5 | 4.1 |
Administrative Cost | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation costs | $ 3.7 | $ 4.7 | $ 6.1 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of Option Award Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 26, 2019 | Dec. 27, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 650,198 | |
Weighted Average Remaining Contractual Life (in years) | ||
Weighted average remaining contractual life, Vested and Expected to Vest | 6 years 9 months 18 days | |
2007 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 8 | |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | ||
Options, Outstanding, beginning balance (in shares) | 1,950,750 | |
Options, Forfeited (in shares) | (26,946) | |
Options, Expired (in shares) | (23,904) | |
Options, Outstanding, ending balance (in shares) | 2,550,098 | 1,950,750 |
Options, Exercisable (in shares) | 1,899,900 | |
Options, Vested and Expected to Vest (in shares) | 2,527,755 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted Average Exercise Price, Outstanding, beginning balance (in dollars per share) | $ 16.45 | |
Weighted average exercise price, Forfeited (in dollars per share) | 17.38 | |
Weighted average exercise price, Expired (in dollars per share) | 15.19 | |
Weighted average exercise price, Outstanding, ending balance (in dollars per share) | 14.35 | $ 16.45 |
Weighted average exercise price, Exercisable (in dollars per share) | 16.45 | |
Weighted average exercise price, Vested and Expected to Vest (in dollars per share) | $ 14.30 | |
Weighted Average Remaining Contractual Life (in years) | ||
Weighted average remaining contractual life, Outstanding | 3 years 2 months | 2 years |
Weighted average remaining contractual life, Exercisable | 1 year | |
Weighted average remaining contractual life, Vested and Expected to Vest | 3 years 2 months |
Share-Based Compensation (Sum_2
Share-Based Compensation (Summary of Restricted Stock Awards and Restricted Stock Units) (Details) | 12 Months Ended |
Dec. 26, 2019$ / sharesshares | |
Number of Restricted Shares and Restricted Stock Units | |
Number of restricted shares and restricted stock units, Non-vested, beginning balance (in shares) | shares | 1,825,983 |
Number of restricted shares and restricted stock units, Granted (in shares) | shares | 823,728 |
Number of restricted shares and restricted stock units, Vested (in shares) | shares | (580,489) |
Number of restricted shares and restricted stock units, Forfeited (in shares) | shares | (282,004) |
Number of restricted shares and restricted stock units, Non-vested, ending balance (in shares) | shares | 1,787,218 |
Weighted Average Grant-Date Fair Value | |
Weighted average grant-date fair value, Non-vested, beginning balance (in dollars per share) | $ / shares | $ 11.31 |
Weighted average grant-date fair value, Granted (in dollars per share) | $ / shares | 7.02 |
Weighted average grant-date fair value, Vested (in dollars per share) | $ / shares | 11.78 |
Weighted average grant-date fair value, Forfeited (in dollars per share) | $ / shares | 14.48 |
Weighted average grant-date fair value, Non-vested, ending balance (in dollars per share) | $ / shares | $ 8.68 |
Share-Based Compensation (Sum_3
Share-Based Compensation (Summary of Restricted Stock Awards and Restricted Stock Units) (Additional Information) (Details) | 12 Months Ended |
Dec. 26, 2019shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Vested shares withheld to cover tax obligations | 185,019 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Retirement Benefits [Abstract] | |||
Percent of compensation participants may contribute | 20.00% | ||
Discretionary contributions | $ 1.2 | $ 1.2 | $ 1.2 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) | Nov. 01, 2027 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Oct. 31, 2027 | Nov. 01, 2019 |
Other Commitments [Line Items] | |||||||||
Operating Lease, Weighted Average Discount Rate, Percent | 7.35% | ||||||||
Operating Lease, Right-of-Use Asset | $ 21,500,000 | ||||||||
Short-term Lease Commitment, Amount | 1,600,000 | ||||||||
Operating Lease, Liability | $ 24,000,000 | ||||||||
Operating Lease, Weighted Average Remaining Lease Term | 10 years 1 month | ||||||||
Total lease expense | $ 3,300,000 | ||||||||
Expense for early lease termination fee | 1,800,000 | ||||||||
Maximum potential payment | 84,600,000 | ||||||||
Guarantee obligations amount paid | 500,000 | $ 700,000 | $ 100,000 | ||||||
Liabilities recorded for related party obligations | 500,000 | 100,000 | |||||||
Amount Increase In Payment Per Theater Patron | $ 0.080 | $ 0.050 | $ 0.038 | $ 0.025 | $ 0.052 | ||||
Platinum Spot Revenue Percentage | 25.00% | ||||||||
NCM, LLC. | Related Party Founding Members | |||||||||
Other Commitments [Line Items] | |||||||||
Liabilities recorded for related party obligations | $ 0 | $ 0 | |||||||
Percentage of increase in payment per theatre patron | 8.00% | ||||||||
Term of increase in payment percentage per theater patron | 5 years | ||||||||
Percentage of increase in payment per digital screen and digital cinema equipment | 5.00% | ||||||||
Minimum | |||||||||
Other Commitments [Line Items] | |||||||||
Range of terms, in years | 1 year | ||||||||
Minimum | NCM, LLC. | Related Party Founding Members | |||||||||
Other Commitments [Line Items] | |||||||||
Aggregate percentage of theater access fee paid | 12.00% | ||||||||
Maximum | |||||||||
Other Commitments [Line Items] | |||||||||
Range of terms, in years | 20 years |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Minimum Lease Payments Under Noncancelable Operating Leases) (Details) $ in Millions | Dec. 26, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2018 | $ 3.5 |
2019 | 3.5 |
2020 | 3.7 |
2021 | 3.7 |
2022 | 3.7 |
Thereafter | 18.6 |
Total | 36.7 |
ImputedInterestFutureLeasePayments | (11.1) |
TotalLeaseLiability | $ 25.6 |
Commitments and Contingencies L
Commitments and Contingencies Lease Cost Table (Details) $ in Millions | 12 Months Ended |
Dec. 26, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 3.2 |
Short-term Lease, Cost | 0.2 |
Variable Lease, Cost | 0.5 |
Lease, Cost | $ 3.9 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Other Investments) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Other investments | $ 0.1 | $ 2.1 |
Total other investments | 1 | 3 |
AC JV, LLC [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in AC JV, LLC | $ 0.9 | $ 0.9 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Other Investments) (Additional Information) (Details) | 12 Months Ended | |
Dec. 26, 2019 | Dec. 27, 2018 | |
Maximum | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Cost-method ownership percentage | 20.00% | 20.00% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Gross Unrealized Loss | $ 0 | $ 200,000 | |
Impairment of investment | 2,000,000 | 400,000 | $ 3,100,000 |
Fair value of cost method investment | 0 | ||
Related Party Founding Members | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Promissory notes receivable from founding members | $ 0 | $ 5,600,000 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Company's Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Term loans | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | $ 266.6 | $ 269.4 |
Term loans | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 266.9 | 261.2 |
Senior secured notes due 2022 | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 0 | 400 |
Senior secured notes due 2022 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 0 | 401.8 |
Senior unsecured notes due 2026 | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 230 | 235 |
Senior unsecured notes due 2026 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 226.2 | $ 211 |
Senior Unsecured Notes Due Two Zero Two Eight [Domain] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 400 | |
Senior Unsecured Notes Due Two Zero Two Eight [Domain] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Values of the Company's Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 26, 2019 | Dec. 27, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $ 17.5 | $ 24 |
Long-term marketable securities | 7.5 | 10.2 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 28.8 | 18.2 |
Short-term marketable securities | 17.5 | 24 |
Long-term marketable securities | 7.5 | 10.2 |
Total assets | 53.8 | 52.4 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 16.8 | 11.2 |
Total assets | 16.8 | 11.2 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12 | 7 |
Short-term marketable securities | 17.5 | 24 |
Long-term marketable securities | 7.5 | 10.2 |
Total assets | $ 37 | $ 41.2 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Values of the Company's Assets and Liabilities) (Additional Information) (Details) - USD ($) | 12 Months Ended | |
Dec. 26, 2019 | Dec. 27, 2018 | |
Fair Value Disclosures [Abstract] | ||
Gross unrealized losses related to individual securities | $ 0 | $ 200,000 |
Gross unrealized losses related to individual securities had been in continuous loss position for 12 months or longer | $ 6,500,000 | $ 11,800,000 |
Fair Value Measurements (Sche_3
Fair Value Measurements (Schedule of Marketable Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 26, 2019 | Dec. 27, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 25.1 | $ 34.6 |
Aggregate Fair Value - Short term marketable securities | 17.5 | 24 |
Aggregate Fair Value - Long term marketable securities | 7.5 | 10.2 |
Aggregate Fair Value - Total marketable securities | 25 | 34.2 |
Short-term Marketable Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 17.6 | 24.1 |
Aggregate Fair Value - Short term marketable securities | 17.5 | 24 |
Short-term Marketable Securities [Member] | U.S. Government Agency Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 3.5 | 3.9 |
Aggregate Fair Value - Short term marketable securities | $ 3.5 | $ 3.9 |
Maturities | 5 months | 6 months |
Short-term Marketable Securities [Member] | US Treasury Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 0.3 | |
Aggregate Fair Value - Short term marketable securities | $ 0.3 | |
Maturities | 6 months | |
Short-term Marketable Securities [Member] | Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 0.9 | $ 3.6 |
Aggregate Fair Value - Short term marketable securities | $ 0.9 | $ 3.6 |
Maturities | 9 months 6 days | 7 months 6 days |
Short-term Marketable Securities [Member] | Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 1.2 | $ 0.5 |
Aggregate Fair Value - Short term marketable securities | $ 1.2 | $ 0.5 |
Maturities | 6 months 6 days | 1 month 6 days |
Short-term Marketable Securities [Member] | Commercial Paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Maturities | 1 month 6 days | |
Short-term Marketable Securities [Member] | Financial Certificates Of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 8 | $ 3.8 |
Aggregate Fair Value - Short term marketable securities | $ 7.9 | 3.8 |
Maturities | 3 months 6 days | |
Short-term Marketable Securities [Member] | Industrial Certificates Of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 4 | 12 |
Aggregate Fair Value - Short term marketable securities | $ 4 | $ 11.9 |
Maturities | 2 months 6 days | 1 month 6 days |
Long-term Marketable Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 7.5 | $ 10.5 |
Aggregate Fair Value - Long term marketable securities | 7.5 | 10.2 |
Long-term Marketable Securities [Member] | U.S. Government Agency Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 4.5 | 6.9 |
Aggregate Fair Value - Long term marketable securities | $ 4.5 | $ 6.8 |
Maturities | 2 years 2 months 6 days | 2 years 1 month 6 days |
Long-term Marketable Securities [Member] | Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 3 | $ 2.4 |
Aggregate Fair Value - Long term marketable securities | $ 3 | $ 2.1 |
Maturities | 3 years 6 months 24 days | 2 years 10 months 24 days |
Long-term Marketable Securities [Member] | Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 1.2 | |
Aggregate Fair Value - Long term marketable securities | $ 1.3 | |
Maturities | 1 year 6 months |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Schedule of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 6 | $ 6 | $ 6.3 |
Provision for bad debt | 1.2 | 1.6 | 1.1 |
Write-offs, net | (1) | (1.6) | (1.4) |
Balance at end of period | 6.2 | 6 | 6 |
Valuation Allowance On Deferred Tax Assets [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 80.1 | 98.1 | 110.3 |
Valuation allowance reversed (2) | 1.5 | (18) | (12.2) |
Balance at end of period | $ 81.6 | $ 80.1 | $ 98.1 |
Quarterly Financial Data (Sched
Quarterly Financial Data (Schedule of Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 147.2 | $ 110.5 | $ 110.2 | $ 76.9 | $ 137.4 | $ 110.1 | $ 113.7 | $ 80.2 | |||
Operating expenses | 74.5 | 70.5 | 72.5 | 66 | 76.6 | 67.8 | 73.5 | 69.2 | $ 283.5 | $ 287.1 | $ 272.2 |
OPERATING INCOME | 72.7 | 40 | 37.7 | 10.9 | 60.8 | 42.3 | 40.2 | 11 | 161.3 | 154.3 | 153.9 |
Consolidated net (loss) income | 45.5 | 22.8 | 21 | (2.6) | 41 | 25.7 | 17 | (3.5) | |||
(Loss) Net income attributable to NCM, Inc. | $ 19.1 | $ 9.2 | $ 8.9 | $ (1.1) | $ 16.3 | $ 11.2 | $ 4.2 | $ (1.9) | $ 36.1 | $ 29.8 | $ 58.3 |
(Loss) Earnings per NCM, Inc. share, basic | $ 0.25 | $ 0.12 | $ 0.11 | $ (0.01) | $ 0.21 | $ 0.15 | $ 0.05 | $ (0.03) | $ 0.47 | $ 0.39 | $ 0.89 |
(Loss) Earnings per NCM, Inc. share, diluted | $ 0.24 | $ 0.12 | $ 0.11 | $ (0.01) | $ 0.21 | $ 0.14 | $ 0.05 | $ (0.03) | $ 0.46 | $ 0.37 | $ 0.48 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions | Feb. 21, 2019USD ($)$ / shares |
Subsequent Events [Line Items] | |
Dividends payable, date declared | Feb. 20, 2020 |
Cash dividends declared, per share | $ / shares | $ 0.19 |
Cash dividends declared | $ | $ 14.8 |
Dividends payable, date of record | Mar. 3, 2020 |
Dividends payable, date to be paid | Mar. 17, 2020 |