Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ck0000885975 | ||
Entity Registrant Name | CINEMARK USA INC /TX | ||
Entity Central Index Key | 885,975 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Class A common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,500 | ||
Class B common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 182,648 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Current assets | ||||
Cash and cash equivalents | $ 426,216 | $ 522,415 | ||
Inventories | 19,319 | 17,507 | ||
Accounts receivable | 95,076 | 89,248 | ||
Current income tax receivable | 3,288 | 11,730 | ||
Prepaid expenses and other | 15,114 | 16,536 | ||
Accounts receivable from parent | 19,530 | 14,581 | ||
Total current assets | 578,543 | 672,017 | ||
Theatre properties and equipment | ||||
Land | 103,739 | 104,207 | ||
Buildings | 522,355 | 490,394 | ||
Property under capital lease | 387,480 | 430,764 | ||
Theatre furniture and equipment | 1,239,122 | 1,199,702 | ||
Leasehold interests and improvements | 1,151,454 | 1,103,522 | ||
Total | 3,404,150 | 3,328,589 | ||
Less: accumulated depreciation and amortization | 1,571,017 | 1,500,535 | ||
Theatre properties and equipment, net | 1,833,133 | 1,828,054 | ||
Other assets | ||||
Goodwill | [1] | 1,276,324 | 1,284,079 | |
Intangible assets - net | 330,910 | 336,761 | ||
Investments in and advances to affiliates | 156,766 | 120,045 | ||
Long-term deferred tax asset | 9,028 | 4,067 | ||
Deferred charges and other assets - net | 41,055 | 39,767 | ||
Total other assets | 2,089,675 | 1,985,269 | ||
Total assets | 4,501,351 | 4,485,340 | ||
Current liabilities | ||||
Current portion of long-term debt | 7,984 | 7,099 | ||
Current portion of capital lease obligations | 27,065 | [2] | 25,511 | |
Current income tax payable | 12,179 | 5,509 | ||
Current liability for uncertain tax positions | 573 | 11,873 | ||
Accounts payable | 104,615 | 109,984 | ||
Accrued film rentals | 95,754 | 106,738 | ||
Accrued payroll | 46,500 | 50,349 | ||
Accrued property taxes | 31,154 | 31,353 | ||
Accrued other current liabilities | 148,229 | 119,870 | ||
Total current liabilities | 474,053 | 468,286 | ||
Long-term liabilities | ||||
Long-term debt, less current portion | 1,772,627 | 1,780,381 | ||
Capital lease obligations, less current portion | 232,467 | [2] | 251,151 | |
Long-term deferred tax liability | 155,626 | 121,787 | ||
Long-term liability for uncertain tax positions | 13,380 | 8,358 | ||
Deferred lease expenses | 39,235 | 40,929 | ||
Other long-term liabilities | 49,431 | 41,247 | ||
Total long-term liabilities | 2,550,115 | 2,595,559 | ||
Commitments and contingencies (see Note 16) | ||||
Cinemark USA, Inc.'s stockholder's equity: | ||||
Common stock | 49,543 | 49,543 | ||
Treasury stock, 57,245 Class B shares at cost | (24,233) | (24,233) | ||
Additional paid-in-capital | 1,277,921 | 1,264,505 | ||
Retained earnings | 480,580 | 373,069 | ||
Accumulated other comprehensive loss | (319,007) | (253,282) | ||
Total Cinemark USA, Inc.'s stockholder's equity | 1,464,804 | 1,409,602 | ||
Noncontrolling interests | 12,379 | 11,893 | ||
Total equity | 1,477,183 | 1,421,495 | ||
Total liabilities and equity | 4,501,351 | 4,485,340 | ||
NCM | ||||
Other assets | ||||
Investment in NCM | 275,592 | 200,550 | ||
Long-term liabilities | ||||
Deferred revenue - NCM | 287,349 | [3] | 351,706 | |
Class A common stock | ||||
Cinemark USA, Inc.'s stockholder's equity: | ||||
Common stock | 0 | 0 | ||
Class B common stock | ||||
Cinemark USA, Inc.'s stockholder's equity: | ||||
Common stock | 49,543 | 49,543 | ||
Total equity | $ 49,543 | $ 49,543 | ||
[1] | Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. | |||
[2] | Represents amounts before the adoption of ASC Topic 842 – Leases. See Note 2 for discussion of the expected impact of adoption. | |||
[3] | Includes the cumulative effect of accounting change of $53,605 recorded on January 1, 2018 and the full year impact of the change in amortization method of $4,104 during the year ended December 31, 2018. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Treasury stock, shares | 57,245 | 57,245 |
Class A common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 1,500 | 1,500 |
Common stock, shares outstanding | 1,500 | 1,500 |
Class B common stock | ||
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 239,893 | 239,893 |
Common stock, shares outstanding | 182,648 | 182,648 |
Common stock, par value | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues | ||||
Total revenues | $ 3,221,735 | $ 2,991,547 | $ 2,918,765 | |
Cost of operations | ||||
Film rentals and advertising | 999,755 | 966,510 | 962,655 | |
Concession supplies | 180,974 | 166,320 | 154,469 | |
Salaries and wages | 383,860 | 354,510 | 325,765 | |
Facility lease expense | 323,316 | 328,197 | 321,294 | |
Utilities and other | 448,070 | 355,041 | 355,926 | |
General and administrative expenses | 162,640 | 150,911 | 140,637 | |
Depreciation and amortization | 261,162 | 237,513 | 209,071 | |
Impairment of long-lived assets | 32,372 | 15,084 | 2,836 | |
Loss on disposal of assets and other | 38,702 | 22,812 | 20,459 | |
Total cost of operations | 2,830,851 | 2,596,898 | 2,493,112 | |
Operating income | 390,884 | 394,649 | 425,653 | |
Other income (expense) | ||||
Interest expense | [1] | (109,994) | (105,918) | (108,313) |
Loss on debt amendments and refinancing | (1,484) | (521) | (13,445) | |
Interest income | 10,592 | 6,243 | 6,396 | |
Foreign currency exchange gain (loss) | (11,660) | 893 | 6,455 | |
Equity in income of affiliates | 39,242 | 35,985 | 31,962 | |
Total other expense | (77,639) | (46,911) | (62,289) | |
Income before income taxes | 313,245 | 347,738 | 363,364 | |
Income taxes | 96,032 | 80,256 | 104,851 | |
Net income | 217,213 | 267,482 | 258,513 | |
Less: Net income attributable to noncontrolling interests | 1,478 | 1,839 | 1,736 | |
Net income attributable to Cinemark USA, Inc. | 215,735 | 265,643 | 256,777 | |
Admissions | ||||
Revenues | ||||
Total revenues | 1,834,173 | 1,794,982 | 1,789,137 | |
Concession | ||||
Revenues | ||||
Total revenues | 1,108,793 | 1,038,788 | 990,103 | |
Other | ||||
Revenues | ||||
Total revenues | 278,769 | 157,777 | 139,525 | |
NCM | ||||
Other income (expense) | ||||
Distributions from NCM | 15,389 | $ 16,407 | $ 14,656 | |
Interest expense - NCM | $ (19,724) | |||
[1] | Includes amortization of debt issue costs. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 217,213 | $ 267,482 | $ 258,513 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) due to fair value adjustments on interest rate swap agreements, net of taxes of $138, $0 and $1,243, net of settlements | (3,851) | 0 | 234 |
Other comprehensive income (loss) in equity method investments | (139) | 248 | 89 |
Foreign currency translation adjustments | (62,253) | (4,966) | 26,394 |
Total other comprehensive income (loss), net of tax | (66,243) | (4,718) | 26,717 |
Total comprehensive income, net of tax | 150,970 | 262,764 | 285,230 |
Comprehensive income attributable to noncontrolling interests | (1,478) | (1,839) | (1,769) |
Comprehensive income attributable to Cinemark USA, Inc. | $ 149,492 | $ 260,925 | $ 283,461 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized gain due to fair value adjustments on interest rate swap agreements, taxes | $ 1,243 | $ 0 | $ 138 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Class A common stock | Class B common stock | Treasury Stock | Additional Paid-in- Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Cinemark USA, Inc.'s Stockholder's Equity | Noncontrolling Interests |
Balance at Dec. 31, 2015 | $ 1,113,251 | $ 49,543 | $ (24,233) | $ 1,238,473 | $ 110,049 | $ (271,686) | $ 1,102,146 | $ 11,105 | |
Balance (in shares) at Dec. 31, 2015 | 2 | 240 | (57) | ||||||
Share based awards compensation expense | 12,413 | 12,413 | 12,413 | ||||||
Tax benefit (expense) related to share based award vestings | 1,856 | 1,856 | 1,856 | ||||||
Dividends paid to parent | (124,900) | (124,900) | (124,900) | ||||||
Dividends paid to noncontrolling interests | (1,309) | (1,309) | |||||||
Buyout of noncontrolling interests' share of Chilean subsidiary | (450) | (27) | (27) | (423) | |||||
Gain realized on available-for-sale securities, net of taxes | (2,011) | (2,011) | (2,011) | ||||||
Net income | 258,513 | 256,777 | 256,777 | 1,736 | |||||
Other comprehensive income (loss) | 26,717 | 26,684 | 26,684 | 33 | |||||
Balance at Dec. 31, 2016 | 1,284,080 | $ 49,543 | $ (24,233) | 1,252,715 | 241,926 | (247,013) | 1,272,938 | 11,142 | |
Balance (in shares) at Dec. 31, 2016 | 2 | 240 | (57) | ||||||
Share based awards compensation expense | 11,825 | 11,825 | 11,825 | ||||||
Tax benefit (expense) related to share based award vestings | (35) | (35) | (35) | ||||||
Dividends paid to parent | (134,500) | (134,500) | (134,500) | ||||||
Dividends paid to noncontrolling interests | (1,088) | (1,088) | |||||||
Net income | 267,482 | 265,643 | 265,643 | 1,839 | |||||
Reclassification of cumulative translation adjustments | (1,551) | (1,551) | (1,551) | ||||||
Other comprehensive income (loss) | (4,718) | (4,718) | (4,718) | ||||||
Balance at Dec. 31, 2017 | 1,421,495 | $ 49,543 | $ (24,233) | 1,264,505 | 373,069 | (253,282) | 1,409,602 | 11,893 | |
Balance (in shares) at Dec. 31, 2017 | 2 | 240 | (57) | ||||||
Cumulative effect of change in accounting principle, net of taxes of $13,079 (see Note 3) | 40,526 | 40,526 | 40,526 | ||||||
Share based awards compensation expense | 13,416 | 13,416 | 13,416 | ||||||
Dividends paid to parent | (148,750) | (148,750) | (148,750) | ||||||
Dividends paid to noncontrolling interests | (992) | (992) | |||||||
Net income | 217,213 | 215,735 | 215,735 | 1,478 | |||||
Reclassification of cumulative translation adjustments | 518 | 518 | 518 | ||||||
Other comprehensive income (loss) | (66,243) | (66,243) | (66,243) | ||||||
Balance at Dec. 31, 2018 | $ 1,477,183 | $ 49,543 | $ (24,233) | $ 1,277,921 | $ 480,580 | $ (319,007) | $ 1,464,804 | $ 12,379 | |
Balance (in shares) at Dec. 31, 2018 | 2 | 240 | (57) |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | ||
Gain realized on available-for-sale securities, taxes | $ 1,180 | |
Cumulative effect of change in accounting principle, taxes | $ 13,079 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Operating activities | ||||
Net income | $ 217,213 | $ 267,482 | $ 258,513 | |
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Depreciation | 257,826 | 235,093 | 207,091 | |
Amortization of intangible and other assets and favorable/unfavorable leases | 3,336 | 2,420 | 1,980 | |
Amortization of long-term prepaid rents | 2,382 | 2,274 | 1,826 | |
Amortization of debt issue costs | 5,561 | 6,197 | 5,492 | |
Amortization of deferred revenues, deferred lease incentives and other | (21,706) | (16,211) | (16,731) | |
Impairment of long-lived assets | 32,372 | 15,084 | 2,836 | |
Share based awards compensation expense | 13,416 | 11,825 | 12,413 | |
Loss on disposal of assets and other | 38,702 | 22,812 | 20,459 | |
Loss on debt amendments and refinancing | 1,484 | 521 | 13,445 | |
Deferred lease expenses | (1,320) | (1,268) | (990) | |
Reclassification of cumulative translation adjustments | 518 | (1,551) | ||
Equity in income of affiliates | (39,242) | (35,985) | (31,962) | |
Deferred income tax expenses | 23,187 | (15,015) | (5,467) | |
Distributions from equity investees | [1] | 30,143 | 25,973 | 21,916 |
Changes in assets and liabilities and other | ||||
Inventories | (1,813) | (541) | (1,007) | |
Accounts receivable | (6,620) | (14,753) | (2,781) | |
Income tax receivable | 8,442 | (4,363) | 15,510 | |
Prepaid expenses and other | 1,422 | (782) | (2,260) | |
Deferred charges and other assets - net | (6,303) | (4,956) | (1,619) | |
Accounts payable and accrued expenses | (11,272) | 23,355 | (30,250) | |
Income tax payable | 6,670 | 438 | (2,261) | |
Liabilities for uncertain tax positions | (10,066) | 2,041 | 1,182 | |
Other long-term liabilities | 11,967 | 8,294 | (5,076) | |
Net cash provided by operating activities | 556,299 | 528,384 | 462,259 | |
Investing activities | ||||
Additions to theatre properties and equipment and other | (346,073) | (380,862) | (326,908) | |
Proceeds from sale of theatre properties and equipment and other | 3,920 | 15,098 | 3,570 | |
Acquisitions of theatres in the U.S. and international markets, net of cash acquired | (11,289) | (40,997) | (15,300) | |
Acquisition of screen advertising business | (1,450) | |||
Proceeds from sale of marketable securities | 13,451 | |||
Investment in joint ventures and other, net | (19,535) | (3,715) | (1,132) | |
Net cash used for investing activities | (451,370) | (410,476) | (327,769) | |
Financing activities | ||||
Dividends paid to parent | (148,750) | (134,500) | (124,900) | |
Payroll taxes paid as a result of restricted stock withholdings | (2,905) | (2,943) | (6,834) | |
Proceeds from issuance of Senior Notes, net of discount | 222,750 | |||
Retirement of Senior Subordinated Notes | (200,000) | |||
Repayments of long-term debt | (7,984) | (5,671) | (16,605) | |
Payment of debt issue costs | (5,218) | (1,146) | (7,217) | |
Fees paid related to debt amendments | (704) | (521) | (11,076) | |
Payments on capital leases | (25,353) | (21,725) | (19,343) | |
Proceeds from financing lease | 10,200 | |||
Purchases of non-controlling interests | (450) | |||
Other | (992) | (1,123) | 554 | |
Net cash used for financing activities | (191,906) | (157,429) | (163,121) | |
Effect of exchange rate changes on cash and cash equivalents | (9,222) | 798 | 1,266 | |
Increase (decrease) in cash and cash equivalents | (96,199) | (38,723) | (27,365) | |
Cash and cash equivalents: | ||||
Beginning of period | 522,415 | 561,138 | 588,503 | |
End of period | 426,216 | $ 522,415 | $ 561,138 | |
NCM | ||||
Investing activities | ||||
Acquisition of NCM common units | $ (78,393) | |||
[1] | Includes distributions received from equity investees that were recorded as a reduction of the respective investment balances. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business — Cinemark USA, Inc. and subsidiaries (the “Company”), a wholly-owned subsidiary of Cinemark Holdings, Inc., operates in the motion picture exhibition industry, with theatres in the United States (“U.S.”), Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curaçao and Paraguay. Principles of Consolidation — The consolidated financial statements include the accounts of Cinemark USA, Inc. and its subsidiaries. Majority-owned subsidiaries that the Company has control of are consolidated while those affiliates of which the Company owns between 20% and 50% and does not control are accounted for under the equity method. Those affiliates of which the Company owns less than 20% are generally accounted for under the cost method, unless the Company is deemed to have the ability to exercise significant influence over the affiliate, in which case the Company would account for its investment under the equity method. The results of these equity method investees are included in the consolidated financial statements effective with their formation or from their dates of acquisition. Intercompany balances and transactions are eliminated in consolidation. Cash and Cash Equivalents — Cash and cash equivalents consist of operating funds held in financial institutions, petty cash held by the theatres and highly liquid investments with original maturities of three months or less when purchased. Cash investments are primarily in money market funds, certificates of deposit or other similar funds. Accounts Receivable – Accounts receivable, which are recorded at net realizable value, consist primarily of receivables related to screen advertising, receivables related to discounted tickets and gift cards sold third party to retail locations, receivables from landlords related to theatre construction and remodels, rebates earned from the Company’s concession vendors and value-added and other non-income tax receivables. Inventories — Concession and theatre supplies inventories are stated at the lower of cost (first-in, first-out method) or market. Theatre Properties and Equipment — Theatre properties and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows: Category Useful Life Buildings on owned land 40 years Buildings on leased land Lesser of lease term or useful life Land and buildings under capital and finance leases (1) Lesser of lease term or useful life Theatre furniture and equipment 3 to 15 years Leasehold improvements Lesser of lease term or useful life (1) The Company reviews long-lived assets for impairment indicators on a quarterly basis or whenever events or changes in circumstances indicate the carrying amount of the assets may not be fully recoverable. The Company also performs a full quantitative impairment evaluation on an annual basis. The Company considers actual theatre level cash flows, budgeted theatre level cash flows, theatre property and equipment carrying values, amortizing intangible asset carrying values, the age of a recently built theatre, competitive theatres in the marketplace, the impact of recent ticket price changes, the impact of recent theatre remodels or other substantial improvements, available lease renewal options and other factors considered relevant in its impairment assessment. Long-lived assets are evaluated for impairment on a theatre basis, which the Company believes is the lowest applicable level for which there are identifiable cash flows. The impairment evaluation is based on the estimated undiscounted cash flows from continuing use through the remainder of the theatre’s useful life. The remainder of the theatre’s useful life correlates with the remaining lease period, which includes the probability of the exercise of available renewal periods or extensions, for leased properties and the lesser of twenty years or the building’s remaining useful life for owned properties. If the estimated undiscounted cash flows are not sufficient to recover a long-lived asset’s carrying value, the Company then compares the carrying value of the asset group (theatre) with its estimated fair value. When the estimated fair value is determined to be lower than the carrying value of the asset group, the asset group is written down to its estimated fair value. Significant judgment is involved in estimating cash flows and fair value. Management’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820-10-35, are based on historical and projected operating performance, recent market transactions and current industry trading multiples. Fair value is determined based on a multiple of cash flows, which was six and a half times for the evaluations performed during 2016, 2017 and 2018. The long-lived asset impairment charges recorded during each of the periods presented are specific to theatres that were directly and individually impacted by increased competition, adverse changes in market demographics, or adverse changes in the development or the conditions of the areas surrounding the theatre. See Note 7 for further discussion. Goodwill and Other Intangible Assets — The Company evaluates goodwill for impairment annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value of the goodwill may not be fully recoverable. The Company evaluates goodwill for impairment at the reporting unit level and we have allocated goodwill to the reporting unit based on an estimate of its relative fair value. Management considers the reporting unit to be each of its twenty regions in the U.S. and seven of its international countries with Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala considered one reporting unit (the Company does not have goodwill recorded for all of its international locations). Under ASC Topic 350, Goodwill, Intangibles and Other (“ASC Topic 350”), the Company may perform a qualitative impairment assessment or a quantitative impairment assessment of our goodwill. A quantitative analysis requires the Company to estimate the fair value of each reporting unit and compare it with its carrying value. If the carrying value of the reporting unit exceeds its estimated fair value, goodwill would be written down such that the carrying value would equal estimated fair value. Fair value is determined based on a multiple of cash flows, which was eight times for the evaluations performed during 2017 and 2018. Significant judgment is involved in estimating cash flows and fair value. Management’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy as defined by FASB ASC Topic 820-10-35, are based on historical and projected operating performance, recent market transactions and current industry trading multiples. Fair value is determined based on a multiple of cash flows, which was eight times for the evaluations performed during 2017 and 2018. A qualitative assessment includes consideration of historical and expected future industry performance, estimated future performance of the Company, current industry trading multiples and other economic factors, and a review of current carrying values to estimated fair values as determined during our most recent quantitative assessment. We performed a qualitative assessment for all reporting units for the year ended December 31, 2016. We performed a quantitative goodwill impairment analysis for all reporting units during the year ended December 31, 2017. For the year ended December 31, 2018, we performed a quantitative goodwill assessment for three new domestic reporting units and a qualitative assessment for all other reporting units. We did not record any goodwill impairment charges as a result of the assessments performed during the years ended December 31, 2016, 2017 and 2018. Tradename 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. Under ASC Topic 350, the Company can elect to perform a qualitative or quantitative impairment assessment for our tradename intangible assets. A quantitative tradename impairment assessment includes comparing the carrying values of tradename assets to an estimated fair value. Fair values are estimated by applying an estimated market royalty rate that could be charged for the use of our tradename to forecasted future revenues, with an adjustment for the present value of such royalties. If the estimated fair value is less than the carrying value, the tradename intangible asset is written down to its estimated fair value. Significant judgment is involved in estimating market royalty rates and long-term revenue forecasts. Management’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy as defined by FASB ASC Topic 820-10-35, are based on historical and projected revenue performance and industry trends. A qualitative assessment considers our historical and forecasted revenues and changes in estimated royalty rates, and a comparison of current carrying values to estimated fair values from our most recent quantitative assessment. During the year ended December 31, 2016, the Company performed a quantitative tradename impairment assessment for our tradename in Ecuador and performed a qualitative tradename impairment analysis for all other tradename intangible assets. During the year ended December 31, 2017, the Company performed quantitative tradename impairment evaluations for all of its tradename assets. During the year ended December 31, 2018, the Company performed a qualitative tradename impairment analysis for all of its tradename assets. As a result of the analysis performed during each year, no impairment charges were recorded related to tradename intangible assets for the years ended December 31, 2016, 2017 and 2018. The table below summarizes the Company’s intangible assets and the amortization method used for each type of intangible asset: Intangible Asset Amortization Method Goodwill Indefinite-lived Tradename Indefinite-lived and definite-lived. Definite-lived tradename assets have a remaining useful life of approximately two to eight years. Vendor contracts Straight-line method over the terms of the underlying contracts. The remaining term of the underlying contract is two years. Favorable/unfavorable leases Based on the pattern in which the economic benefits are realized over the terms of the lease agreements. The remaining terms of the lease agreements range from approximately one to eighteen years. See Note 2 for discussion of the expected impact of new lease accounting pronouncements. Other intangible assets Straight-line method over the terms of the underlying agreement or the expected useful life of the intangible asset. The remaining useful lives of these intangible assets range from two to eight years. Deferred Charges and Other Assets — Deferred charges and other assets consist of long-term prepaid rents, construction and other deposits, equipment to be placed in service, and other assets of a long-term nature. Long-term prepaid rents represent prepayments of rent on operating leases, which are recognized as facility lease expense over the period for which the rent was paid in advance as outlined in the lease agreements. The remaining amortization periods generally range from one to seventeen years. See Note 2 for discussion of the expected impact of new lease accounting pronouncements. Lease Accounting — The Company evaluates each lease for classification as either a capital lease or an operating lease. The Company records the lease as a capital lease at its inception if 1) the present value of future minimum lease payments exceeds 90% of the leased property’s estimated fair value; 2) the lease term exceeds 75% of the property’s estimated useful life; 3) the lease contains a bargain purchase option; or 4) ownership transfers to the Company at the end of the lease. The Company performs this evaluation at the inception of the lease and when a modification is made to a lease. If the lease agreement calls for a scheduled rent increase during the lease term, the Company recognizes the lease expense on a straight-line basis over the lease term. The Company determines the straight-line rent expense impact of an operating lease upon inception of the lease. For some newly built theatres, the landlord is responsible for constructing the theatre using guidelines and specifications agreed to by the Company and assumes substantially all of the risks of construction. For other theatres, the Company is responsible for managing construction of the theatre and the landlord contributes an agreed upon amount toward the costs of construction. If the Company concludes that it has substantially all of the construction period risks, it considers itself the owner of the property during the construction period. At the end of the construction period, the Company determines if the transaction qualifies for sale-leaseback accounting treatment in regards to lease classification. If the Company receives a lease incentive payment from a landlord, the Company records the proceeds as a deferred lease incentive liability and amortizes the liability as a reduction in rent expense over the initial term of the lease if a new theatre, or over the remaining lease term if an existing theatre. See Note 2 for discussion of the expected impact of new lease accounting pronouncements. Deferred Revenues — Advances collected on long-term screen advertising, concession and other contracts are recorded as deferred revenues. In accordance with the terms of the agreements, the advances collected on such contracts are recognized during the period in which the advances are earned, which may differ from the period in which the advances are collected. These advances are recognized on either a straight-line basis over the term of the contracts or as such revenues are earned in accordance with the terms of the contracts. In addition, the Company records deferred revenues for sales of gift cards and discounted ticket vouchers, as well as for proceeds received from its monthly subscription program, annual membership fees for certain of its loyalty programs and for points issued to customers under other loyalty programs. See Note 3 for further discussion of revenue recognition and Note 4 for discussion of deferred revenue – NCM. Self-Insurance Reserves — In the U.S., the Company is self-insured for general liability claims subject to an annual cap. For the years ended December 31, 2016, 2017 and 2018, general liability claims were capped at $100, $250 and $250, respectively, per occurrence with aggregate annual caps of approximately $3,350, $3,900 and $4,750, respectively. For its international locations, the Company is fully insured for general liability claims with little or no deductibles per occurrence. In the U.S., the Company was fully insured for workers compensation claims during the year ended December 31, 2016. During 2017, the Company implemented a fully-funded deductible workers compensation insurance plan under which the Company is responsible for pre-funding claims and is responsible for claims up to $250 per occurrence, with an annual cap of $5,000 for the years ended December 31, 2017 and 2018. The Company was also self-insured for domestic medical claims up to $150, $250 and $250 per occurrence for the years ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2017 and 2018, the Company’s insurance reserves were $8,252 and $10,827, respectively, and are reflected in accrued other current liabilities on the consolidated balance sheets Revenue and Expense Recognition — See Note 3 for discussion of revenue recognition. Film rental costs are accrued based on the applicable box office receipts and either firm terms or a sliding scale formula, which are generally established prior to the opening of the film, or estimates of the final settlement rate, which occurs at the conclusion of the film run, subject to the film licensing arrangement. Under a firm terms formula, the Company pays the distributor a percentage of box office receipts, which reflects either an aggregate rate for the life of the film or rates that decline over the term of the run. Under a sliding scale formula, film rental is paid as a percentage of box office revenues using a pre-determined matrix based upon box office performance of the film. The settlement process allows for negotiation of film rental fees upon the conclusion of the film run based upon how the film performs. Estimates are based on the expected success of a film. The success of a film can typically be determined a few weeks after a film is released when initial box office performance of the film is known. Accordingly, final settlements typically approximate estimates since box office receipts are known at the time the estimate is made and the expected success of a film can typically be estimated early in the film’s run. If actual settlements are different than those estimates, film rental costs are adjusted at the time of settlement. Loyalty Programs – The Company launched its domestic app-based loyalty program, Connections, in February 2016. Customers earn points for various transactions as tracked within the app. Points may be redeemed for movie tickets, concessions items, concession discounts and experiential rewards, each of which are offered for limited periods of time and at varying times during the year. For the years ended December 31, 2016 and 2017, the Company applied the incremental cost approach to accounting for the rewards earned, as it determined that the values of the rewards offered to the customer are insignificant to the original transactions required to earn such rewards. The Company also has loyalty programs in certain of its international markets, which generally consist of the customer paying a membership fee in exchange for discounts during the membership period. Effective January 1, 2018, the Company adopted ASC Topic 606 and now accounts for its points-based loyalty programs by deferring a portion of the revenue associated with the transaction that earned such points. See Note 3 for discussion of revenue recognition as it relates to the Company’s loyalty programs. Accounting for Share Based Awards — The Company measures the cost of employee services received in exchange for an equity award based on the fair value of the award on the date of the grant. The grant date fair value is estimated using a market observed price. Such costs are recognized over the period during which an employee is required to provide service in exchange for the award (which is usually the vesting period). At the time of the grant, the Company also estimates the number of awards that will ultimately be forfeited. See Note 13 for discussion of the Company’s share based awards and related compensation expense. Income Taxes — The Company uses an asset and liability approach to financial accounting and reporting for income taxes. Deferred income taxes are provided when tax laws and financial accounting standards differ with respect to the amount of income for a year and the basis of assets and liabilities. A valuation allowance is recorded to reduce the carrying amount of deferred tax assets unless it is more likely than not that such assets will be realized. Income taxes are provided on unremitted earnings from foreign subsidiaries unless such earnings are expected to be indefinitely reinvested. Income taxes have also been provided for potential tax assessments. The evaluation of an uncertain tax position is a two-step process. The first step is recognition: The Company determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company should presume that the position would be examined by the appropriate taxing authority that would have full knowledge of all relevant information. The second step is measurement: A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements result in (1) a change in a liability for income taxes payable or (2) a change in an income tax refund receivable, a deferred tax asset or a deferred tax liability or both (1) and (2). The Company accrues interest and penalties on its uncertain tax positions as a component of income tax expense. Segments — For the years ended December 31, 2016, 2017 and 2018, the Company managed its business under two reportable operating segments, U.S. markets and international markets. See Note 17. Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. The Company’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. Foreign Currency Translations — The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at current exchange rates as of the balance sheet date, and revenues and expenses are translated at average monthly exchange rates. The resulting translation adjustments are recorded in the consolidated balance sheets in accumulated other comprehensive loss. See Note 11 for a summary of the translation adjustments recorded in accumulated other comprehensive loss for the years ended December 31, 2016, 2017 and 2018. The Company recognizes foreign currency transaction gains and losses when changes in exchange rates impact transactions, other than intercompany transactions of a long-term investment nature, that have been denominated in a currency other than the functional currency. Fair Value Measurements — According to authoritative guidance, inputs used in fair value measurements fall into three different categories; Level 1, Level 2 and Level 3. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. See Note 10 for a discussion of our fair value measurements for the year ended December 31, 2018. Acquisitions — The Company accounts for acquisitions under the acquisition method of accounting. The acquisition method requires that the acquired assets and liabilities, including contingencies, be recorded at fair value determined on the acquisition date and changes thereafter reflected in income. For certain acquisitions, the Company obtains independent third party valuation studies for certain of the assets acquired and liabilities assumed to assist the Company in determining fair value. The estimation of the fair values of the assets acquired and liabilities assumed involves a number of estimates and assumptions that could differ materially from the actual amounts realized. The Company provides assumptions, including both quantitative and qualitative information, about the specified asset or liability to the third party valuation firms. The Company primarily utilizes the third parties to accumulate comparative data from multiple sources and assemble a report that summarizes the information obtained. The Company then uses the information to record estimated fair value. The third party valuation firms are supervised by Company personnel who are knowledgeable about valuations and fair value. The Company evaluates the appropriateness of the assumptions and valuation methodologies utilized by the third party valuation firm. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. NEW ACCOUNTING PRONOUNCEMENTS Impact of New Revenue Recognition Standard In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Impact of New Lease Accounting Standard In February 2016, the FASB issued ASU 2016-02, Leases The Company adopted ASC Topic 842 effective January 1, 2019. The Company is finalizing its evaluation of the impact of ASC Topic 842 on its consolidated financial statements, and expects the most significant impacts to be as follows: 1. The Company will recognize liabilities representing the present value of the remaining future minimum lease payments for all of its operating leases as of January 1, 2019. The Company estimates these liabilities will be between $1,400,000 and $1,700,000. 2. The Company will recognize right of use assets for all of its operating leases equal to the liabilities calculated in (1) above, adjusted for the balances of long-term prepaid rent, favorable lease intangible assets, deferred lease expense, unfavorable lease liabilities and deferred lease incentive liabilities as of January 1, 2019. 3. The Company has theatre leases for which it was involved in construction that failed sale-leaseback accounting at the end of the construction period. These leases, which were accounted for as capital leases, will be derecognized upon adoption of ASC Topic 842 and evaluated to determine classification upon adoption. Some of these leases will be classified as operating leases upon adoption and, beginning in 2019, lease payments for these leases will be recorded as facility lease expense on the consolidated income statement. Previously, as capital leases, lease payments were classified as interest expense and reductions of the capital lease obligations. 4. For the capital leases derecognized as discussed in (3) above, the Company will write-off of the net book value of the capital lease asset and capital lease liability, with the difference between those amounts resulting in an adjustment to beginning retained earnings as of January 1, 2019. Other Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments – a consensus of the FASB Emerging Issues Task Force In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope Modification Accounting In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation, the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act made changes to the U.S. tax code, which included (1) reduced U.S. corporate tax rate from 35 percent to 21 percent, (2) generally eliminated U.S. federal income taxes on dividends from foreign subsidiaries, (3) a one-time transition tax on certain undistributed earnings of foreign subsidiaries, and (4) created new taxes on certain foreign-sourced earnings. As of December 31, 2018, the amounts recorded for the Tax Act are final for the 2017 transition tax, the re-measurement of deferred taxes, and our reassessment of valuation allowances. See further discussion at Note 15. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. REVENUE RECOGNITION Revenue Recognition Policy The Company’s patrons have the option to purchase movie tickets well in advance of a movie showtime or right before the movie showtime, or at any point in between those two timeframes depending on seat availability. The Company recognizes such admissions revenues when the showtime for a purchased movie ticket has passed. Concession revenues are recognized when sales are made at the registers. Other revenues primarily consist of screen advertising and transactional fees. Screen advertising revenues are recognized over the period that the related advertising is delivered on-screen or in-theatre. The Company sells gift cards and discount ticket vouchers, the proceeds from which are recorded as current liabilities. Revenues for gift cards and discount ticket vouchers are recognized when they are redeemed for movie tickets or concession items. The Company offers a subscription program in the U.S. whereby patrons can pay a monthly fee to receive a monthly credit for use towards a future movie ticket purchase. The Company records the monthly subscription program fees as current liabilities and records admissions revenues as the credits are redeemed for movie tickets. The Company also has loyalty programs in many of its locations that either have a prepaid annual membership fee or award points to customers as purchases are made. For those loyalty programs that have an annual membership fee, the Company recognizes the fee collected as other revenues over the term of the membership. For those loyalty programs that award points to customers based on their purchases, the Company records a portion of the original transaction proceeds as liabilities based on the number of reward points issued to customers and recognizes revenues when the customer redeems such points. Screen advertising revenues are generally recognized over the period that the related advertising is delivered on-screen or in-theatre. Advances collected on long-term screen advertising, concession and other contracts are recorded as deferred revenues. In accordance with the terms of the agreements, the advances collected on such contracts are recognized during the period in which the Company satisfies the related performance obligations, which may differ from the period in which the advances are collected. These advances are recognized on either a straight-line basis over the term of the contracts or as the Company has met its performance obligations in accordance with the terms of the contracts. See additional revenue recognition policy considerations, updated for the adoption of ASC Topic 606, below. Adoption of ASC Topic 606 The Company adopted ASC 606, Revenue from Contracts with Customers, Changes to the way in which the Company recognizes revenue resulted in the following impacts to the consolidated statements of income: a) Recording of incremental other revenue and interest expense related to the significant financing component of the Company’s Exhibitor Services Agreement (“ESA”) with NCM, LLC (“NCM”). See further discussion below, including the estimated interest rates assumed in determining the amount of interest expense. b) Deferral of a portion of admissions and concession revenues for transactions that include the issuance of loyalty points to customers. To determine the amount of revenues to defer upon issuance of points to customers under its points-based loyalty programs, the Company estimated the values of the rewards expected to be redeemed by its customers for those points. The estimates are based on the rewards that have historically been offered under the loyalty programs, which the Company believes is representative of the rewards to be offered in the future. c) Increase in other revenues and an increase in utilities and other expenses due to the presentation of transactional fees on a gross versus net basis. d) Increase in other revenues due to the change in amortization methodology for deferred revenue – NCM that is now amortized on a straight-line basis and effective for the entire term of the ESA. The deferred revenue – NCM is related to the Company’s ESA and Common Unit Adjustment agreement with NCM, under which the Company’s performance obligation is to provide NCM with exclusive access to its domestic theatres for purposes of in-theatre advertising over the term of the ESA. Such exclusivity, and therefore the satisfaction of the Company’s performance obligation, is provided to NCM evenly over time. As a result of the change in amortization method, the Company recorded a cumulative effect of accounting change adjustment of $40,526, net of taxes, in retained earnings on January 1, 2018 (see also Note 6). The significant changes discussed above had the following impact on the Company’s statements of income and cash flows for the year ended December 31, 2018: Without Adoption of ASC 606 Impact of Adoption of ASC 606 As Reported Statement of income: Admissions revenues $ 1,839,723 $ (5,550 ) $ 1,834,173 Concession revenues $ 1,110,703 $ (1,910 ) $ 1,108,793 Other revenues $ 161,743 $ 117,026 $ 278,769 Utilities and other expense $ 354,740 $ 93,330 $ 448,070 Interest expense - NCM $ — $ 19,724 $ 19,724 Statement of cash flows: Amortization of deferred revenues, deferred lease incentives and other $ (17,602 ) $ (4,104 ) $ (21,706 ) Changes in other assets and liabilities - Other long-term liabilities $ 4,375 $ 7,592 $ 11,967 The impact of adoption of ASC 606 on the Company’s balance sheet as of December 31, 2018 was as follows: Without Adoption of ASC 606 Impact of Adoption of ASC 606 As Reported Balance sheet line items: Deferred revenue - NCM (1) $ 345,058 $ (57,709 ) $ 287,349 Long-term deferred tax liability $ 142,547 $ 13,079 $ 155,626 Other long-term liabilities $ 41,839 $ 7,592 $ 49,431 Retained earnings $ 440,054 $ 40,526 $ 480,580 (1) Includes the cumulative effect of accounting change of $53,605 recorded on January 1, 2018 and the full year impact of the change in amortization method of $4,104 during the year ended December 31, 2018. The Company applied the practical expedient to exclude sales and other similar taxes collected from customers from its transaction price for purposes of recording revenues. As such, revenues are presented net of such taxes. Disaggregation of Revenue The following table presents revenues for the year ended December 31, 2018, disaggregated based on major type of good or service and by reportable operating segment. Twelve Months Ended December 31, 2018 U.S. International Operating Operating Major Goods/Services Segment (1) Segment Consolidated Admissions revenues $ 1,461,151 $ 373,022 $ 1,834,173 Concession revenues 892,391 216,402 1,108,793 Screen advertising and promotional revenues 78,591 61,269 139,860 Other revenues 106,824 32,085 138,909 Total revenues $ 2,538,957 $ 682,778 $ 3,221,735 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. The following table presents revenues for the year ended December 31, 2018, disaggregated based on timing of revenue recognition (as discussed above). Twelve Months Ended December 31, 2018 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 2,453,313 $ 608,347 $ 3,061,660 Goods and services transferred over time 85,644 74,431 160,075 Total $ 2,538,957 $ 682,778 $ 3,221,735 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. Deferred Revenues The following table presents changes in the Company’s deferred revenues for the year ended December 31, 2018. Deferred Revenues Deferred Revenue - NCM Other Deferred Revenues (1) Total Balance at January 1, 2018 $ 351,706 $ 86,498 $ 438,204 Impact of adoption of ASC Topic 606 (53,605 ) — (53,605 ) Amounts recognized as accounts receivable — 6,921 6,921 Cash received from customers in advance — 156,237 156,237 Common units received from NCM (see Note 6) 5,012 — 5,012 Revenue recognized during period (15,764 ) (141,176 ) (156,940 ) Foreign currency translation adjustments — (2,405 ) (2,405 ) Balance at December 31, 2018 $ 287,349 $ 106,075 $ 393,424 (1) Includes liabilities associated with outstanding gift cards and SuperSavers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the consolidated balance sheet. The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2018 and when the Company expects to recognize this revenue. Twelve Months Ended December 31, Remaining Performance Obligations 2019 2020 2021 2022 2023 Thereafter Total Deferred revenue - NCM $ 15,831 $ 15,831 $ 15,831 $ 15,831 $ 15,831 $ 208,194 $ 287,349 Deferred revenue - other 89,523 16,146 207 199 — — 106,075 Total $ 105,354 $ 31,977 $ 16,038 $ 16,030 $ 15,831 $ 208,194 $ 393,424 Accounts receivable as of December 31, 2018 included approximately $48,117 of receivables related to contracts with customers. The Company did not record any assets related to the costs to obtain or fulfill a contract with customers during the year ended December 31, 2018. Significant Financing Component As discussed further in Note 4, in connection with the completion of the NCM, Inc. (“NCMI”) initial public offering, the Company amended and restated its ESA with NCM and received approximately $174,000 in cash consideration from NCM. The proceeds were recorded as deferred revenue and are being amortized over the term of the modified ESA, or through February 2037. In addition to the consideration received upon the ESA modification during 2007, the Company also receives consideration in the form of common units from NCM, at each annual common unit adjustment settlement, in exchange for exclusive access to the Company’s newly opened domestic screens under the ESA. See Note 4 for additional information regarding the common unit adjustment and related accounting. Due to the significant length of time between receiving the consideration from NCM and fulfillment of the related performance obligation, the ESA includes an implied significant financing component, as per the guidance in ASC Topic 606. As a result of the significant financing component on deferred revenue - NCM, the Company recognized incremental screen advertising revenue and an offsetting interest expense of $19,724 during the year ended December 31, 2018. The interest expense was calculated using the Company’s incremental borrowing rates at the time when the cash and each tranche of common units were received from NCM, which ranged from 5.5% to 8.0%. |
Investment in National CineMedi
Investment in National CineMedia LLC | 12 Months Ended |
Dec. 31, 2018 | |
NCM | |
Investment in National CineMedia LLC | 4. INVESTMENT IN NATIONAL CINEMEDIA LLC The Company has an investment in National CineMedia, LLC (“NCM”). NCM operates a digital in-theatre network in the U.S. for providing cinema advertising and non-film events. Upon joining NCM, the Company entered into an Exhibitor Services Agreement (“ESA”) with NCM, pursuant to which NCM provides advertising, promotion and event services to our theatres. On February 13, 2007, The ESA modification reflected a shift from circuit share expense under the prior ESA, which obligated NCM to pay the Company a percentage of revenue, to a monthly theatre access fee, which significantly reduced the contractual amounts paid to us by NCM. The Company recorded the proceeds related to the ESA modification as deferred revenue. As a result of the application of a portion of the proceeds it received from the NCMI initial public offering, the Company had a negative basis in its original membership units in NCM, which is referred to herein as the Company’s Tranche 1 Investment. Following the NCMI IPO, the Company does not recognize undistributed equity in the earnings on its Tranche 1 Investment until NCM's net earnings, less distributions received, surpass the amount of the excess distribution. The Company recognizes equity in earnings on its Tranche 1 Investment only to the extent it receives cash distributions from NCM. The Company The Company believes that the accounting model provided by ASC 323-10-35-22 for recognition of equity investee losses in excess of an investor's basis is analogous to the accounting for equity income subsequent to recognizing an excess distribution. Common Unit Adjustments Pursuant to a Common Unit Adjustment Agreement dated as of February 13, 2007 between NCMI and the Company, AMC and Regal, whom we refer to collectively as the Founding Members, adjustments are made annually to the common membership units primarily based on increases or decreases in the number of theatre screens operated and theatre attendance generated by each Founding Member. To account for the receipt of additional common units under the Common Unit Adjustment Agreement, we follow the guidance in FASB ASC 323-10-35-29 (formerly EITF 02-18, “Accounting for Subsequent Investments in an Investee after Suspension of Equity Loss Recognition” Below is a summary of common units received by the Company under the Common Unit Adjustment (“CUA”) Agreement during the years ended December 31, 2016, 2017 and 2018: Event Date Common Units Received Number of Common Units Received Fair Value of Common Units Received 2016 annual common unit adjustment 3/31/2016 753,598 $ 11,111 2017 annual common unit adjustment 3/31/2017 1,487,218 $ 18,363 2018 annual common unit adjustment 3/29/2018 908,042 $ 5,012 Each common unit received by the Company is convertible into one share of NCMI common stock. The fair value of the common units received was estimated based on the market price of NCMI stock at the time that the common units were received, adjusted for volatility associated with the estimated period of time it would take to convert the common units and register the respective NCMI shares. The fair value measurement used for the common units falls under Level 2 of the U.S. GAAP fair value hierarchy as defined by ASC Topic 820-10-35. The Company records the additional common units it receives as part of its Tranche 2 Investment at estimated fair value with a corresponding adjustment to deferred revenue. The deferred revenue is amortized over the remaining term of the ESA. Acquisition of Common Units On July 5, 2018, the Company acquired 10,738,740 common units of NCM from AMC for $78,393 in cash, or approximately $7.30 per common unit. As a result of the acquisition of these shares, the Company’s ownership of NCM increased from approximately 18% to 25%. The amount paid for the additional common units was recorded as an increase in the Company’s Tranche 2 investment in NCM. As of December 31, 2018, the Company owned a total of 39,518,644 common units of NCM, which represented an interest of approximately 25%. The estimated fair value of the Company’s investment in NCM was approximately $256,081 based on NCMI’s stock price as of December 31, 2018 of $6.48 per share (Level 1 input as defined in FASB ASC Topic 820), which was less than the Company’s carrying value of $275,592. The Company does not believe that the decline in NCMI’s stock price is other than temporary and therefore, no impairment of the Company’s investment in NCM was recorded during the year ended December 31, 2018. The market value of NCMI’s stock price may continue to vary due to the performance of the business, industry trends, general and economic conditions and other factors. Summary of Activity with NCM Below is a summary of activity with NCM included in the Company’s consolidated financial statements for the periods indicated. See Note 3 for discussion of impact of new revenue recognition accounting pronouncements. Investment in NCM Deferred Revenue Distributions from NCM Equity in Earnings Other Revenue Interest Expense - NCM (3) Cash Received (Paid) Balance as of January 1, 2016 $ 183,755 $ (342,134 ) Receipt of common units due to annual common unit adjustment 11,111 (11,111 ) $ — $ — $ — $ — $ — Revenues earned under ESA (1) — — — — (11,048 ) — 11,048 Receipt of excess cash distributions (11,233 ) — (11,483 ) — — — 22,716 Receipt under tax receivable agreement (2,985 ) — (3,173 ) — — — 6,158 Equity in earnings 9,347 — — (9,347 ) — — — Amortization of deferred revenue — 9,317 — — (9,317 ) — — Balance as of and for the twelve months ended December 31, 2016 $ 189,995 $ (343,928 ) $ (14,656 ) $ (9,347 ) $ (20,365 ) $ — $ 39,922 Receipt of common units due to annual common unit adjustment 18,363 (18,363 ) $ — $ — $ — $ — $ — Revenues earned under ESA (1) — — — — (11,274 ) — 11,274 Receipt of excess cash distributions (15,093 ) — (14,158 ) — — — 29,251 Receipt under tax receivable agreement (2,265 ) — (2,249 ) — — — 4,514 Equity in earnings 9,550 — — (9,550 ) — — — Amortization of deferred revenue — 10,585 — — (10,585 ) — — Balance as of and for the twelve months ended December 31, 2017 $ 200,550 $ (351,706 ) $ (16,407 ) $ (9,550 ) $ (21,859 ) $ — $ 45,039 Impact of adoption of ASC Topic 606 (2) — 53,605 $ — $ — $ — $ — $ — Receipt of common units due to annual common unit adjustment 5,012 (5,012 ) — — — — — Purchase of additional common units 78,393 — — — — — — Revenues earned under ESA (1)(3) — — — — (31,867 ) 19,724 12,143 Receipt of excess cash distributions (19,786 ) — (13,231 ) — — — 33,017 Receipt under tax receivable agreement (2,419 ) — (2,158 ) — — — 4,577 Equity in earnings 13,842 — — (13,842 ) — — — Amortization of deferred revenue (2) — 15,764 — — (15,764 ) — — Balance as of and for the twelve months ended December 31, 2018 $ 275,592 $ (287,349 ) $ (15,389 ) $ (13,842 ) $ (47,631 ) $ 19,724 $ 49,737 (1) Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire. The amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire were approximately $10,523, $11,110 and $11,965 for the years ended December 31, 2016, 2017 and 2018, respectively. (2) As a result of adoption of ASC Topic 606, the Company determined that the deferred revenue associated with the ESA and CUA agreement should be amortized on a straight-line basis versus the units of revenue method followed prior to adoption. The Company recorded a reduction in the deferred revenue balance and a cumulative effect of a change in accounting principle in retained earnings. See Note 3 for further discussion of the impact of the adoption of ASC Topic 606. (3) Reflects the impact of significant financing component related to amounts received in advance under the ESA and CUA agreement. See Note 3. The Company made payments to NCM of approximately $49, $102 and $74 during the years ended December 31, 2016, 2017 and 2018, respectively, related to certain equipment used for digital advertising, which is included in theatre furniture and equipment on the consolidated balance sheets. The tables below present summary financial information for NCM for the periods indicated: Year Ended Year Ended Year Ended December 29, 2016 December 28, 2017 December 27, 2018 Revenues $ 447,600 $ 426,100 $ 441,400 Operating income $ 173,000 $ 153,900 $ 154,300 Net income $ 109,300 $ 101,900 $ 98,400 As of As of December 28, 2017 December 27, 2018 Current assets $ 174,400 $ 172,700 Noncurrent assets $ 758,300 $ 726,800 Current liabilities $ 123,300 $ 115,200 Noncurrent liabilities $ 925,400 $ 924,900 Members' deficit $ (116,000 ) $ (140,600 ) |
Other Investments
Other Investments | 12 Months Ended |
Dec. 31, 2018 | |
Financial Support For Nonconsolidated Legal Entity [Abstract] | |
Other Investments | 5. OTHER INVESTMENTS Below is a summary of activity for each of the Company’s other investments for the periods indicated: DCIP RealD AC LLC DCDC FE Concepts Other Total Balance at January 1, 2016 $ 71,579 $ 12,900 $ 7,269 $ 2,562 $ — $ 663 $ 94,973 Cash contributions 717 — — — — 415 1,132 Equity in income 21,434 — 311 870 — — 22,615 Equity in comprehensive income 89 — — — — — 89 Sale of investment (1) — (12,900 ) — — — — (12,900 ) Cash distributions received (6,000 ) — (1,600 ) (98 ) — — (7,698 ) Other (2) — — — (584 ) — 690 106 Balance at December 31, 2016 $ 87,819 $ — $ 5,980 $ 2,750 $ — $ 1,768 $ 98,317 Cash contributions 1,112 — — — 104 2,499 3,715 Equity in income 22,900 — 2,336 1,199 — — 26,435 Equity in comprehensive income 248 — — — — — 248 Cash distributions received (5,864 ) — (2,400 ) (351 ) — — (8,615 ) Other — — — — — (55 ) (55 ) Balance at December 31, 2017 $ 106,215 $ — $ 5,916 $ 3,598 $ 104 $ 4,212 $ 120,045 Cash contributions 2,076 — — — 20,000 — 22,076 Equity in income (loss) 22,899 — 1,270 1,313 (82 ) — 25,400 Equity in comprehensive loss (139 ) — — — — — (139 ) Cash distributions received (5,799 ) — (1,920 ) (219 ) — — (7,938 ) Other (2) — — — (2,437 ) (104 ) (137 ) (2,678 ) Balance at December 31, 2018 $ 125,252 $ — $ 5,266 $ 2,255 $ 19,918 $ 4,075 $ 156,766 (1) RealD, Inc (2) Digital Cinema Implementation Partners LLC (“DCIP”) On February 12, 2007, the Company, AMC and Regal entered into a joint venture known as DCIP to facilitate the implementation of digital cinema in the Company’s theatres and to establish agreements with major motion picture studios for the financing of digital cinema. As of December 31, 2018, the Company had a 33% voting interest in DCIP and a 24.3% economic interest in DCIP. The Company accounts for its investment in DCIP and its subsidiaries under the equity method of accounting. Below is summary financial information for DCIP as of and for the years ended December 31, 2016, 2017 and 2018: Year ended December 31, 2016 2017 2018 Revenues $ 178,836 $ 177,382 $ 172,534 Operating income $ 107,919 $ 106,687 $ 102,236 Net income $ 89,152 $ 93,103 $ 94,757 As of December 31, 2017 December 31, 2018 Current assets $ 56,296 $ 57,907 Noncurrent assets $ 772,438 $ 684,545 Current liabilities $ 59,153 $ 67,408 Noncurrent liabilities $ 296,889 $ 125,596 Members' equity $ 472,692 $ 549,448 The digital projection systems are being leased from Kasima LLC (“Kasima”), which is an indirect subsidiary of DCIP and a related party to the Company, under an operating lease with an initial term of twelve years that contains ten one-year fair value renewal options. The equipment lease agreement also contains a fair value purchase option. Under the equipment lease agreement, the Company pays annual rent of one thousand dollars per digital projection system. The Company may also be subject to various types of other rent if such digital projection systems do not meet minimum performance requirements as outlined in the agreements. Certain of the other rent payments are subject to either a monthly or an annual maximum. As of December 31, 2018, the Company had 3,837 digital projection systems being leased under the master equipment lease agreement with Kasima. The Company had the following transactions with DCIP during the years ended December 31, 2016, 2017 and 2018: Year Ended December 31, 2016 2017 2018 Equipment lease payments $ 5,217 $ 5,743 $ 4,862 Warranty reimbursements from DCIP $ (6,091 ) $ (8,511 ) $ (10,800 ) Management services fees $ 825 $ 823 $ 730 RealD, Inc. (“RealD”) The Company licenses 3-D systems from RealD. Under its license agreement with RealD, the Company earned options to purchase shares of RealD common stock as it installed a certain number of 3-D systems as outlined in the license agreement. During 2010 and 2011, the Company vested in a total of 1,222,780 RealD options. Upon vesting in these options, the Company recorded an investment in RealD and a deferred lease incentive liability using the estimated fair value of the RealD options at the time of vesting. During March 2011, the Company exercised all of its options to purchase shares of common stock in RealD for $0.00667 per share. The Company owned 1,222,780 shares of RealD and accounted for its investment in RealD as a marketable security, specifically an available-for-sale security, in accordance with ASC Topic 320-10-35-1, therefore unrealized holding gains and losses were reported as a component of accumulated other comprehensive loss until realized. On March 22, 2016, an affiliate of Rizvi Traverse Management, LLC acquired RealD for $11.00 per share. As a result of the transaction, the Company sold its shares for approximately $13,451 and recognized a gain of $3,742, which included the recognition of a cumulative unrealized holding gain of $3,191 previously recorded in accumulated other comprehensive loss. The gain is reflected within loss on disposal of assets and other on the consolidated statement of income for the year ended December 31, 2016. The Company used the proceeds to make a pre-payment on its term loan in accordance with the terms of its senior secured credit facility. AC JV, LLC During December 2013, the Company, Regal, AMC (the “AC Founding Members”) and NCM entered into a series of agreements that resulted in the formation of AC JV, LLC (“AC”), a joint venture that owns “Fathom Events” (consisting of Fathom Events and Fathom Consumer Events) formerly operated by NCM. The Fathom Events business focuses on the marketing and distribution of live and pre-recorded entertainment programming to various theatre operators to provide additional programs to augment their feature film schedule. The Company paid event fees to AC of $10,871, $13,950 and $12,481 for the years ended December 31, 2016, 2017 and 2018, respectively, which are included in film rentals and advertising costs on the consolidated statements of income. The Company accounts for its investment in AC under the equity method of accounting. AC was formed by the AC Founding Members and NCM. NCM contributed the assets associated with its Fathom Events division to AC. Each of the Founding Members contributed cash of approximately $268 and a six-year promissory note in the amount of $8,333 in exchange for 32% of Class A Units in AC. Each of the Founding Members’ Promissory Notes bear interest at 5% per annum and require annual principal and interest payments. The remaining outstanding balance of the note payable from the Company to NCM as of December 31, 2018 was $1,389. Digital Cinema Distribution Coalition The Company is a party to a joint venture with certain exhibitors and distributors called Digital Cinema Distribution Coalition (“DCDC”). DCDC operates a satellite distribution network that distributes all digital content to U.S. theatres via satellite. The Company has an approximate 14.6% ownership in DCDC. The Company paid approximately $939, $848 and $927 to DCDC during the years ended December 31, 2016, 2017 and 2018, respectively, related to content delivery services, which is included in film rentals and advertising costs on the consolidated statements of income. The Company accounts for its investment in DCDC under the equity method of accounting. FE Concepts, LLC During April 2018, the Company, through its wholly-owned indirect subsidiary CNMK Texas Properties, LLC (“CNMK”), formed a joint venture, FE Concepts, LLC (“FE Concepts”) with AWSR Investments, LLC (“AWSR”), an entity owned by Lee Roy Mitchell and Tandy Mitchell. FE Concepts will develop and operate a family entertainment center that offers bowling, gaming, movies and other amenities. The Company and AWSR each invested approximately $20,000 and each have a 50% voting interest in FE Concepts. The Company accounts for its investment in FE Concepts under the equity method of accounting. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS - NET | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS - NET | 6. GOODWILL AND OTHER INTANGIBLE ASSETS — NET The Company’s goodwill was as follows: U.S. Operating Segment International Operating Segment Total Balance at December 31, 2016 (1) $ 1,164,163 $ 98,800 $ 1,262,963 Acquisitions of theatres (2) 9,878 13,211 23,089 Foreign currency translation adjustments — (1,973 ) (1,973 ) Balance at December 31, 2017 (1) $ 1,174,041 $ 110,038 $ 1,284,079 Acquisitions of theatres (3) — 7,204 7,204 Foreign currency translation adjustments — (14,959 ) (14,959 ) Balance at December 31, 2018 (1) $ 1,174,041 $ 102,283 $ 1,276,324 (1) Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. (2) (3) Amount represents preliminary purchase price allocation for theatres acquired in Brazil. As of December 31, intangible assets-net, consisted of the following: Balance at Balance at January 1, December 31, 2017 Additions (1) Amortization Other (2) 2017 Intangible assets with finite lives: Gross carrying amount $ 99,796 $ 11,584 $ — $ (5,485 ) $ 105,895 Accumulated amortization (64,606 ) — (5,563 ) 1,300 (68,869 ) Total net intangible assets with finite lives $ 35,190 $ 11,584 $ (5,563 ) $ (4,185 ) $ 37,026 Intangible assets with indefinite lives: Tradename 299,709 — — 26 299,735 Total intangible assets — net $ 334,899 $ 11,584 $ (5,563 ) $ (4,159 ) $ 336,761 Balance at Balance at January 1, December 31, 2018 Additions (3) Amortization Other (2) 2018 Intangible assets with finite lives: Gross carrying amount $ 105,895 $ 1,203 $ — $ (1,842 ) $ 105,256 Accumulated amortization (68,869 ) — (5,734 ) — (74,603 ) Total net intangible assets with finite lives $ 37,026 $ 1,203 $ (5,734 ) $ (1,842 ) $ 30,653 Intangible assets with indefinite lives: Tradename and other 299,735 853 — (331 ) 300,257 Total intangible assets — net $ 336,761 $ 2,056 $ (5,734 ) $ (2,173 ) $ 330,910 (1) Activity for 2017 represent fair values allocated to intangible assets acquired as part of acquisitions of theatres in the U.S. and international markets. (2) Amounts represent foreign currency translation adjustments and the write-off of certain lease intangibles for theatre closures and lease amendments. (3) Amount for intangible assets with finite lives represents preliminary purchase price allocation for theatres acquired in Brazil. Estimated aggregate future amortization expense for intangible assets is as follows ( 1) For the year ended December 31, 2019 $ 4,785 For the year ended December 31, 2020 5,053 For the year ended December 31, 2021 2,904 For the year ended December 31, 2022 2,812 For the year ended December 31, 2023 3,161 Thereafter 11,938 Total $ 30,653 (1) Leases |
IMPAIRMENT OF LONG-LIVED ASSETS
IMPAIRMENT OF LONG-LIVED ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | |
IMPAIRMENT OF LONG-LIVED ASSETS | 7. IMPAIRMENT OF LONG-LIVED ASSETS The Company reviews long-lived assets for impairment indicators on a quarterly basis or whenever events or changes in circumstances indicate the carrying amount of the assets may not be fully recoverable. See Note 1 for discussion of the Company’s impairment policy. The Company’s long-lived asset impairment losses are summarized in the following table: Year Ended December 31, 2016 2017 2018 U.S. theatre properties $ 1,929 $ 5,227 $ 18,597 International theatre properties 907 9,857 13,775 Impairment of long-lived assets $ 2,836 $ 15,084 $ 32,372 The long-lived asset impairment charges recorded during each of the years presented are specific to theatres that were directly and individually impacted by increased competition, adverse changes in market demographics, or adverse changes in the development or the conditions of the areas surrounding the theatre. As of December 31, 2018, the estimated aggregate remaining fair value of the long-lived assets impaired during the year ended December 31, 2018 was approximately $16,295. |
Deferred Charges and Other Ass
Deferred Charges and Other Assets - Net | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Deferred Charges and Other Assets - Net | 8. DEFERRED CHARGES AND OTHER ASSETS — NET As of December 31, deferred charges and other assets — net consisted of the following: December 31, 2017 2018 Long-term prepaid rents (1) $ 7,762 $ 15,943 Construction and other deposits 12,167 8,183 Equipment to be placed in service 13,868 10,466 Other 5,970 6,463 Total $ 39,767 $ 41,055 (1) |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 9. LONG-TERM DEBT As of December 31, long-term debt consisted of the following: December 31, 2017 2018 Cinemark USA, Inc. term loan $ 659,517 $ 652,922 Cinemark USA, Inc. 5.125% senior notes due 2022 400,000 400,000 Cinemark USA, Inc. 4.875% senior notes due 2023 755,000 755,000 Other (1) 2,778 1,389 Total long-term debt 1,817,295 1,809,311 Less current portion 7,099 7,984 Less debt issuance costs, net of accumulated amortization of $25,549 and $30,289, respectively 29,815 28,700 Long-term debt, less current portion $ 1,780,381 $ 1,772,627 (1) Represents debt owed to NCM in relation to the joint venture AC JV, LLC. See Note 5. Senior Secured Credit Facility Cinemark USA, Inc. has a senior secured credit facility that includes a $700,000 term loan and a $100,000 revolving credit line (the “Credit Agreement”). Cinemark USA, Inc. made the following amendments to its Credit Agreement as follows during 2016, 2017 and 2018: Debt Issue Loss on Debt Effective Date Nature of Amendment Costs Paid (1) Amendment (2) June 13, 2016 Reduced term loan interest rate by 0.25% $ 783 $ 249 December 15, 2016 Reduced term loan interest rate by 0.50% $ 2,446 $ 161 June 16, 2017 Reduced term loan interest rate by 0.25%; modified certain definitions and other provisions in the Credit Agreement $ 521 $ 190 November 28, 2017 Extended maturity of revolving credit line to December 2022; reduced the interest rate applicable to borrowings under the credit line $ 330 $ 331 March 29, 2018 Extended maturity of term loan to March 2025; reduced term loan interest rate by 0.25%; reduced real property mortgage requirements $ 4,962 $ 1,484 (1) Reflected as a reduction of long term debt on the consolidated balance sheet. (2) Reflected as a loss on debt amendments and refinancing on the consolidated statement of income for the year in which the amendments were effective. Under the amended Credit Agreement, quarterly principal payments of $1,649 are due on the term loan through December 31, 2024, with a final principal payment of $613,351 due on March 29, 2025. Subsequent to the March 29, 2018 amendment noted above, interest on the term loan accrues at Cinemark USA, Inc.’s option at: (A) the base rate equal to the greater of (1) the US “Prime Rate” as quoted in The Wall Street Journal or if no such rate is quoted therein, in a Federal Reserve Board statistical release, (2) the federal funds effective rate plus 0.50%, and (3) a one-month Eurodollar-based rate plus 1.0%, plus, in each case, a margin of 0.75% per annum, or (B) a Eurodollar-based rate for a period of 1, 2, 3, 6, 9 or 12 months plus a margin of 1.75% per annum. Interest on the revolving credit line accrues, at our option, at: (A) a base rate equal to the greater of (1) the US “Prime Rate” as quoted in The Wall Street Journal or if no such rate is quoted therein, in a Federal Reserve Board statistical release, (2) the federal funds effective rate plus 0.50%, and (3) a one-month Eurodollar-based rate plus 1.0%, plus, in each case, a margin that ranges from 0.50% to 1.25% per annum, or (B) a Eurodollar-based rate for a period of 1, 2, 3, 6, 9 or 12 months plus a margin that ranges from 1.50% to 2.25% per annum. The margin of the revolving credit line is determined by the consolidated net senior secured leverage ratio as defined in the Credit Agreement. At December 31, 2018, there was $ 652,922 Cinemark USA, Inc.’s obligations under the Credit Agreement are guaranteed by Cinemark Holdings, Inc. and certain of Cinemark USA, Inc.’s domestic subsidiaries and are secured by mortgages on certain fee and leasehold properties and security interests in substantially all of Cinemark USA, Inc.’s and the guarantors’ personal property, including, without limitation, pledges of all of Cinemark USA, Inc.’s capital stock, all of the capital stock of certain of Cinemark USA, Inc.’s domestic subsidiaries and 65% of the voting stock of certain of its foreign subsidiaries. The Credit Agreement contains usual and customary negative covenants for agreements of this type, including, but not limited to, restrictions on Cinemark USA, Inc.’s ability, and in certain instances, its subsidiaries’ and our ability, to consolidate or merge or liquidate, wind up or dissolve; substantially change the nature of its business; sell, transfer or dispose of assets; create or incur indebtedness; create liens; pay dividends or repurchase stock; and make capital expenditures and investments. If Cinemark USA, Inc. has borrowings outstanding on the revolving credit line, it is required to keep a consolidated net senior secured leverage ratio, as defined in the Credit Agreement, not to exceed 5.0 to 1. As of December 31, 2018, the Company’s actual ratio was 2.9 to 1. The dividend restriction contained in the Credit Agreement prevents the Company and any of its subsidiaries from paying a dividend or otherwise distributing cash to its stockholders unless (1) the Company is not in default, and the distribution would not cause Cinemark USA, Inc. to be in default, under the Credit Agreement; and (2) the aggregate amount of certain dividends, distributions, investments, redemptions and capital expenditures made since December 18, 2012, including dividends declared by the board of directors, is less than the sum of (a) the aggregate amount of cash and cash equivalents received by Cinemark Holdings, Inc. or Cinemark USA, Inc. as common equity since December 18, 2012, (b) Cinemark USA, Inc.’s consolidated EBITDA minus 1.75 times its consolidated interest expense, each as defined in the Credit Agreement, and (c) certain other defined amounts. As of December 31, 2018, Cinemark USA, Inc. could have distributed up to approximately $2,918,142 to its parent company and sole stockholder, Cinemark Holdings, Inc. 4.875% Senior Notes On May 24, 2013, Cinemark USA, Inc. issued $530,000 aggregate principal amount of 4.875% senior notes due 2023, at par value, (the “4.875% Senior Notes”). Interest on the 4.875% Senior Notes is payable on June 1 and December 1 of each year. The 4.875% Senior Notes mature on June 1, 2023. On March 21, 2016, Cinemark USA, Inc. issued an additional $225,000 aggregate principal amount of the 4.875% Senior Notes, at 99.0% of the principal amount plus accrued and unpaid interest from December 1, 2015. Proceeds, after payment of fees, were used to finance the redemption of Cinemark, USA, Inc.’s previously outstanding $200,000 7.375% senior subordinated notes due 2021 (the “7.375% Senior Subordinated Notes”), as discussed below. These additional notes have identical terms, other than the issue date, the issue price and the first interest payment date, and constitute part of the same series as Cinemark USA, Inc.’s existing 4.875% Senior Notes. The aggregate principal amount of $755,000 of 4.875% Senior Notes mature on June 1, 2023. The Company incurred debt issue costs of approximately $3,702 in connection with the issuance of the additional notes, which, along with the discount of $2,250, are reflected as a reduction of long term debt, net of accumulated amortization, on the consolidated balance sheets as of December 31, 2017 and 2018. The 4.875% Senior Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by certain of Cinemark USA, Inc.’s subsidiaries that guarantee, assume or become liable with respect to any of Cinemark USA, Inc.’s or a guarantor’s debt. The 4.875% Senior Notes and the guarantees are senior unsecured obligations and rank equally in right of payment with all of Cinemark USA, Inc.’s and its guarantor’s existing and future senior unsecured debt and senior in right of payment to all of Cinemark USA, Inc.’s and its guarantor’s existing and future senior subordinated debt. The 4.875% Senior Notes and the guarantees are effectively subordinated to all of Cinemark USA, Inc.’s and its guarantor’s existing and future secured debt to the extent of the value of the assets securing such debt, including all borrowings under Cinemark USA, Inc.’s Credit Agreement. The 4.875% Senior Notes and the guarantees are structurally subordinated to all existing and future debt and other liabilities of Cinemark USA, Inc.’s subsidiaries that do not guarantee the 4.875% Senior Notes. The indenture to the 4.875% Senior Notes contains covenants that limit, among other things, the ability of Cinemark USA, Inc. and certain of its subsidiaries to (1) make investments or other restricted payments, including paying dividends, making other distributions or repurchasing subordinated debt or equity, (2) incur additional indebtedness and issue preferred stock, (3) enter into transactions with affiliates, (4) enter new lines of business, (5) merge or consolidate with, or sell all or substantially all of its assets to, another person and (6) create liens. As of December 31, 2018, Cinemark USA, Inc. could have distributed up to approximately $2,980,550 to its parent company and sole stockholder, Cinemark Holdings, Inc., under the terms of the indenture to the 4.875% Senior Notes, subject to its available cash and other borrowing restrictions outlined in the indenture. The required minimum coverage ratio is 2 to 1 and our actual ratio as of December 31, 2018 was approximately 6.3 to 1. 5.125% Senior Notes On December 18, 2012, Cinemark USA, Inc. issued $400,000 aggregate principal amount of 5.125% senior notes due 2022, at par value (the “5.125% Senior Notes”). Interest on the 5.125% Senior Notes is payable on June 15 and December 15 of each year. The 5.125% Senior Notes mature on December 15, 2022. The 5.125% Senior Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by certain of Cinemark USA, Inc.’s subsidiaries that guarantee, assume or become liable with respect to any of Cinemark USA, Inc.’s or a guarantor’s debt. The 5.125% Senior Notes and the guarantees are senior unsecured obligations and rank equally in right of payment with all of Cinemark USA, Inc.’s and its guarantor’s existing and future senior unsecured debt and senior in right of payment to all of Cinemark USA, Inc.’s and its guarantor’s existing and future subordinated debt. The 5.125% Senior Notes and the guarantees are effectively subordinated to all of Cinemark USA, Inc.’s and its guarantor’s existing and future secured debt to the extent of the value of the assets securing such debt, including all borrowings under Cinemark USA, Inc.’s Credit Agreement. The 5.125% Senior Notes and the guarantees are structurally subordinated to all existing and future debt and other liabilities of Cinemark USA, Inc.’s subsidiaries that do not guarantee the 5.125% Senior Notes. The indenture to the 5.125% Senior Notes contains covenants that limit, among other things, the ability of Cinemark USA, Inc. and certain of its subsidiaries to (1) make investments or other restricted payments, including paying dividends, making other distributions or repurchasing subordinated debt or equity, (2) incur additional indebtedness and issue preferred stock, (3) enter into transactions with affiliates, (4) enter new lines of business, (5) merge or consolidate with, or sell all or substantially all of its assets to, another person and (6) create liens. As of December 31, 2018, Cinemark USA, Inc. could have distributed up to approximately $2,985,833 to its parent company and sole stockholder, Cinemark Holdings, Inc., under the terms of the indenture to the 5.125% Senior Notes, subject to its available cash and other borrowing restrictions outlined in the indenture. The required minimum coverage ratio is 2 to 1 and our actual ratio as of December 31, 2018 was approximately 6.3 to 1. 7. 375 On June 3, 2011, Cinemark USA, Inc. issued $200,000 aggregate principal amount of 7.375% senior subordinated notes due 2021, at par value (the “Senior Subordinated Notes”). On March 21, 2016, Cinemark USA, Inc. redeemed its Senior Subordinated Notes at a make-whole premium of approximately 104% plus accrued and unpaid interest, utilizing the proceeds from the issuance of the additional $225,000 Cinemark USA, Inc. 4.875% Senior Notes discussed above. As a result of the redemption, the Company wrote-off approximately $2,369 in unamortized debt issue costs, paid a make-whole premium of $9,444 and paid other fees of $1,222, all of which are reflected in loss on debt amendments and refinancing during the year ended December 31, 2016. Fair Value of Long Term Debt The Company estimates the fair value of its long-term debt primarily using quoted market prices, which fall under Level 2 of the U.S. GAAP fair value hierarchy as defined by FASB ASC Topic 820-10-35. The carrying value of the Company’s long term debt was $1,817,295 and $1,809,311 as of December 31, 2017 and 2018, respectively, excluding debt issuance costs of $29,815 and $28,700, respectively. The fair value of the Company’s long term debt was $1,840,918 and $1,774,066 as of December 31, 2017 and 2018, respectively. Covenant Compliance and Debt Maturity As of December 31, 2018, the Company believes it was in full financial compliance with all agreements, including related covenants, governing its outstanding debt. The Company’s long-term debt, excluding unamortized debt issuance costs, at December 31, 2018 matures as follows: 2019 $ 7,984 2020 6,595 2021 6,595 2022 406,595 2023 761,595 Thereafter 619,947 Total $ 1,809,311 Interest Rate Swap Agreements The Company is currently a party to three interest rate swap agreements that are used to hedge a portion of the interest rate risk associated with the variable interest rates on the Company’s term loan debt and qualify for cash flow hedge accounting. The fair values of the interest rate swaps are recorded on the Company’s consolidated balance sheet as an asset or liability with the related gains or losses reported as a component of accumulated other comprehensive loss. The changes in fair value are reclassified from accumulated other comprehensive loss into earnings in the same period that the hedged items affect earnings. The valuation technique used to determine fair value is the income approach and under this approach, the Company uses projected future interest rates as provided by counterparty to the interest rate swap agreement and the fixed rates that the Company is obligated to pay under the agreement. Therefore, the Company’s measurements use significant unobservable inputs, which fall in Level 3 of the U.S. GAAP hierarchy as defined by FASB ASC Topic 820-10-35. Below is a summary of the Company’s interest rate swap agreements designated as cash flow hedges as of December 31, 2018: Estimated Fair Value at Notional December 31, Amount Effective Date Pay Rate Receive Rate Expiration Date 2018 (1) $ 175,000 December 31, 2018 2.751% 1-Month LIBOR December 31, 2022 $ 1,983 $ 137,500 December 31, 2018 2.765% 1-Month LIBOR December 31, 2022 $ 1,624 $ 137,500 December 31, 2018 2.746% 1-Month LIBOR December 31, 2022 $ 1,486 Total $ 5,093 (1) The total estimated fair value of the interest rate swaps of $5,093, net of deferred taxes of $1,243, is reflected in accumulated other comprehensive loss for the year ended December 31, 2018. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. FAIR VALUE MEASUREMENTS The Company determines fair value measurements in accordance with FASB ASC Topic 820, which establishes a fair value hierarchy under which an asset or liability is categorized based on the lowest level of input significant to its fair value measurement. The levels of input defined by FASB ASC Topic 820 are as follows: Level 1 – quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date; Level 2 – other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable and should be used to measure fair value to the extent that observable inputs are not available. Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of December 31, 2018: Carrying Fair Value Description Value Level 1 Level 2 Level 3 Interest rate swap liabilities $ (5,093 ) $ — $ — $ (5,093 ) Below is a reconciliation of the beginning and ending balance for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Liabilities (1) 2018 Beginning balance - January 1 $ — Interest rate swaps effective December 31, 2018 5,093 Ending balance - December 31 $ 5,093 (1) Represents interest rate swap liabilities. See Note 11 for further discussion. The Company also uses the market approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its long-lived assets (see Note 1 and Note 9). Additionally, the Company uses the market approach to estimate the fair value of its long-term debt (see Note 11). There were no changes in valuation techniques during the period. There were no transfers in or out of Level 1, Level 2 or Level 3 during the years ended December 31, 2016, 2017 and 2018. |
FOREIGN CURRENCY TRANSLATION
FOREIGN CURRENCY TRANSLATION | 12 Months Ended |
Dec. 31, 2018 | |
Foreign Currency [Abstract] | |
FOREIGN CURRENCY TRANSLATION | 11. FOREIGN CURRENCY TRANSLATION The accumulated other comprehensive loss account in stockholder’s equity of $253,282 and $319,007 at December 31, 2017 and 2018, respectively, includes the cumulative foreign currency losses of $253,565 and $315,300, respectively, from translating the financial statements of the Company’s international subsidiaries and the change in fair values of the Company’s interest rate swap agreements designated as hedges. As of December 31, 2018, all foreign countries where the Company has operations, other than Argentina, are non-highly inflationary, and the local currency is the same as the functional currency in all of the locations. Thus, any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss. The Company deemed Argentina to be highly inflationary beginning July 1, 2018. A highly inflationary economy is defined as an economy with a cumulative inflation rate of approximately 100 percent or more over a three-year period. If a country’s economy is classified as highly inflationary, the financial statements of the foreign entity operating in that country must be remeasured to the functional currency of the reporting entity. The financial statements of the Company’s Argentina subsidiaries has been remeasured in U.S. dollars in accordance with ASC Topic 830, Foreign Currency Matters Below is a summary of the impact of translating the financial statements of all of the Company’s international subsidiaries as of and for the years ended December 31, 2016, 2017 and 2018. Other Comprehensive Income (Loss) Exchange Rate as of December 31, For the Year Ended December 31, Country 2016 2017 2018 2016 2017 2018 Brazil 3.26 3.31 3.88 $ 37,286 $ (4,567 ) $ (34,086 ) Argentina (1) 16.04 18.65 37.68 (13,362 ) (8,200 ) (14,357 ) Colombia 3,000.71 2,936.67 3,249.75 1,278 246 (1,795 ) Chile 679.09 615.97 694.74 1,855 5,672 (8,924 ) Peru 3.45 3.24 3.39 87 2,752 (2,136 ) All other (783 ) (869 ) (955 ) $ 26,361 $ (4,966 ) $ (62,253 ) (1) Amount represents the cumulative comprehensive loss recorded for Argentina through June 30, 2018. The impact of translating Argentina financial results to U.S. dollars, beginning July 1, 2018, which was not significant, has been recorded in foreign currency exchange gain (loss) on the Company’s consolidated statement of income. During the year ended December 31, 2017, the Company reclassified $1,551 of cumulative foreign currency translation adjustments, related to a Canadian subsidiary that was liquidated, from accumulated other comprehensive loss to foreign currency exchange gain (loss) on the consolidated statement of income. During the year ended December 31, 2018, the Company reclassified $518 of cumulative foreign currency translation adjustments, related to the settlement of an intercompany note between a domestic and an international subsidiary, from accumulated other comprehensive loss to foreign currency exchange gain (loss) on the consolidated statement of income. |
NONCONTROLLING INTERESTS IN SUB
NONCONTROLLING INTERESTS IN SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS IN SUBSIDIARIES | 12. NONCONTROLLING INTERESTS IN SUBSIDIARIES Noncontrolling interests in subsidiaries of the Company were as follows at December 31: December 31, 2017 2018 Cinemark Partners II — 24.6% interest (in one theatre) $ 8,795 $ 8,152 Laredo Theatres – 25% interest (in two theatres) 1,746 2,308 Greeley Ltd. — 49% interest (in one theatre) 843 1,411 Other 509 508 Total $ 11,893 $ 12,379 During December 2016 the Company purchased the remaining 25% noncontrolling interest of one of its Chilean subsidiaries, Flix Impirica S.A. (“Flix Impirica”), for approximately $450 in cash. The increase in the Company’s ownership interest in the Chilean subsidiary was accounted for as an equity transaction in accordance with ASC Topic 810-10-45-23. The Company recorded a decrease in additional paid-in-capital of approximately $27, which represented the difference between the cash paid and the book value of the Chilean subsidiary’s noncontrolling interest account, which was approximately $423. As a result of this transaction, the Company now owns 100% of the shares in Flix Impirica. Below is a summary of the impact of changes in the Company’s ownership interest in its subsidiaries on its equity: Year ended December 31, 2016 2017 2018 Net income attributable to Cinemark USA, Inc. $ 256,777 $ 265,643 $ 215,735 Transfers from noncontrolling interests Decrease in Cinemark USA, Inc. additional paid-in-capital for the buyout of Flix Impirica non-controlling interest (27 ) — — Net transfers from non-controlling interests (27 ) — — Change from net income attributable to Cinemark USA, Inc. and transfers from noncontrolling interests $ 256,750 $ 265,643 $ 215,735 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
CAPITAL STOCK | 13. CAPITAL STOCK Common and Preferred Stock — Cinemark USA, Inc. has 1,500 shares of Class A common stock and 182,648 shares of Class B common stock outstanding, all of which are held by Cinemark Holdings, Inc. Holders of Class A common stock have exclusive voting rights. Holders of Class B common stock have no voting rights except upon any proposed amendments to the articles of incorporation. However, they may convert their Class B common stock, at their option, to Class A common stock. In the event of any liquidation, holders of the Class A and Class B common stock will be entitled to their pro-rata share of assets remaining after any holders of preferred stock have received their preferential amounts based on their respective shares held. The Company has 1,000,000 shares of preferred stock, $1.00 par value, authorized with none issued or outstanding. The rights and preferences of preferred stock will be determined by the Board of Directors at the time of issuance. The Company’s ability to pay dividends is effectively limited by the terms of its indentures and its senior secured credit facility, which also significantly restricts the ability of certain of the Company’s subsidiaries to pay dividends directly or indirectly to it. See Note 9 for a discussion of restrictions contained within the debt agreements. Restricted Stock — Below is a summary of restricted stock activity for Cinemark Holdings, Inc. for the years ended December 31, 2016, 2017 and 2018: Year Ended Year Ended Year Ended December 31, 2016 December 31, 2017 December 31, 2018 Shares of Restricted Stock Weighted Average Grant Date Fair Value Shares of Restricted Stock Weighted Average Grant Date Fair Value Shares of Restricted Stock Weighted Average Grant Date Fair Value Outstanding at January 1 757,775 $ 30.73 606,618 $ 33.51 650,581 $ 35.81 Granted 335,707 $ 30.98 246,534 $ 41.70 328,734 $ 38.72 Vested (430,056 ) $ 26.60 (192,230 ) $ 36.26 (250,442 ) $ 31.27 Forfeited (56,808 ) $ 33.81 (10,341 ) $ 33.48 (24,520 ) $ 38.62 Outstanding at December 31 606,618 $ 33.51 650,581 $ 35.81 704,353 $ 38.68 During the year ended December 31, 2018, Cinemark Holdings, Inc. granted 328,734 shares of restricted stock to its directors and employees of the Company. The fair value of the restricted stock granted was determined based on the market value of Cinemark Holdings, Inc.’s common stock on the dates of grant, which ranged from $35.80 to $39.26 per share. The Company assumed forfeiture rates ranging from 0% to 10% for the restricted stock awards. Restricted stock granted to directors vests over a one-year period. Restricted stock granted to employees vests over periods ranging from one year to four years based on continued service. The recipients of restricted stock are entitled to receive dividends and to vote their respective shares, however, the sale and transfer of the restricted shares is prohibited during the restriction period. Below is a summary of restricted stock award activity recorded for the periods indicated. Year Ended December 31, 2016 2017 2018 Compensation expense recognized by the Company during the period $ 7,269 $ 7,528 $ 8,735 Additional compensation expense recognized by Cinemark Holdings, Inc. during the period $ 981 $ 856 $ 920 Fair value of restricted shares held by Company employees that vested during the period $ 13,739 $ 7,255 $ 8,699 Fair value of restricted shares held by Cinemark Holdings, Inc.’s directors that vested during the period $ 923 $ 917 $ 802 Income tax benefit recognized upon vesting of restricted stock awards held by Company employees $ 5,167 $ 2,281 $ 1,543 Additional income tax benefit recognized upon vesting of restricted stock awards held by Cinemark Holdings, Inc.'s directors $ 388 $ 386 $ 201 As of December 31, 2018, the remaining unrecognized compensation expense related to these restricted stock awards was approximately $15,174, of which $14,758 will be recognized by the Company and $416 of which will be recognized by Cinemark Holdings, Inc. The weighted average period over which this remaining compensation expense will be recognized is approximately two years. Restricted Stock Units — During the years ended December 31, 2016, 2017 and 2018, Cinemark Holdings, Inc. granted restricted stock units representing 253,661, 175,634 and 228,194 hypothetical shares of Cinemark Holdings, Inc.’s common stock, respectively, to employees of the Company. The restricted stock units vest based on a combination of financial performance factors and continued service. The financial performance factors are based on an implied equity value concept that determines an internal rate of return (“IRR”) for a two year measurement period, as defined in the award agreement, based on a formula utilizing a multiple of Adjusted EBITDA subject to certain specified adjustments (as defined in the restricted stock unit award agreement). The financial performance factors for the restricted stock units have a threshold, target and maximum level of payment opportunity and vest on a prorata basis according to the IRR achieved by the Company during the performance period. As an example, if the Company achieves an IRR equal to 9.0% for the 2016 grant, the number of restricted stock units that shall vest will be greater than the target but less than the maximum number that would have vested had the Company achieved the highest IRR. All payouts of restricted stock units that vest will be subject to an additional service requirement and will be paid in the form of common stock if the participant continues to provide services through the fourth anniversary of the grant date. The financial performance factors and respective vesting rates for each of the 2016, 2017 and 2018 grants are as follows: Year Ended December 31, Percentage of Shares Vesting 2016 2017 2018 Threshold IRR 6.0% 7.0% 7.0% 33.3% Target IRR 8.0% 9.5% 9.5% 66.6% Maximum IRR 10.0% 13.0% 13.0% 100.0% At the time of each of the restricted stock unit grants, the Company assumes the IRR level to be reached for the defined measurement period will be the target IRR level in determining the amount of compensation expense to record for such grants. If and when additional information becomes available to indicate that something other than the target IRR level will be achieved, the Company adjusts compensation expense on a prospective basis over the remaining service period. The Company assumed a forfeiture rate of 5% for the restricted stock unit awards granted during 2018. Restricted stock unit award participants are eligible to receive dividend equivalent payments if and at the time the restricted stock unit awards vest. Below is a table summarizing the potential number of units that could vest under restricted stock unit awards granted during the years ended December 31, 2016, 2017 and 2018 at each of the three levels of financial performance (excluding forfeitures): Granted During the Year Ended December 31, 2016 2017 2018 Number of Value at Number of Value at Number of Value at Units Grant (1) Units Grant (1) Units Grant (1) at threshold IRR 84,554 $ 2,522 58,545 $ 2,481 76,065 $ 2,967 at target IRR 169,107 $ 5,044 117,089 $ 4,961 152,129 $ 5,938 at maximum IRR 253,661 $ 7,568 175,634 $ 7,442 228,194 $ 8,906 (1) The grant date fair values for units issued during the years ended December 31, 2016 and 2017 were $29.83 and $42.37, respectively. The grant date fair values for the units issued during the year ended December 31, 2018 ranged from $37.55 to $39.03. Below is a summary of activity for restricted stock unit awards for Cinemark Holdings, Inc. for the periods indicated: Year Ended December 31, 2016 2017 2018 Number of restricted stock unit awards that vested during the period 213,984 97,115 127,084 Fair value of restricted stock unit awards that vested during the period $ 7,260 $ 4,155 $ 4,846 Accumulated dividends paid upon vesting of restricted stock unit awards $ 662 $ 558 $ 526 Compensation expense recognized during the period $ 5,144 $ 4,297 $ 4,681 Income tax benefit recognized upon vesting of restricted stock unit awards $ 3,049 $ 1,745 $ 708 During the year ended December 31, 2016, the Compensation Committee of the Board of Directors approved a modification to the 2015 restricted stock unit grants. The modification resulted in a cap on the foreign currency exchange rate devaluation impact to be used in calculating the IRR for the respective measurement periods. The Company revalued each of the grants based on the Company’s stock price at the date of modification, which was $37.98. The modifications resulted in incremental compensation expense of approximately $562 for the year ended December 31, 2016. As of December 31, 2018, the Company had restricted stock units outstanding that represented a total 594,266 hypothetical shares of common stock, net of actual cumulative forfeitures of 18,667 units, assuming the maximum IRR is achieved for all of the outstanding restricted stock unit awards. As of December 31, 2018, the remaining unrecognized compensation expense related to the outstanding restricted stock unit awards was $8,416, which reflects the maximum IRR level that was achieved for the 2015 grant, an IRR level of 7.2% that was achieved for the 2016 grant, an IRR level of 11.2% that is estimated for the 2017 grant and an IRR level of 9.5% that is estimated for the 2018 grants. The weighted average period over which this remaining compensation expense will be recognized is approximately two years. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | 14. SUPPLEMENTAL CASH FLOW INFORMATION The following is provided as supplemental information to the consolidated statements of cash flows: Year Ended December 31, 2016 2017 2018 Cash paid for interest $ 108,101 $ 99,232 $ 98,411 Cash paid for income taxes, net of refunds received $ 93,368 $ 95,043 $ 64,199 Noncash investing and financing activities: Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment (1) $ (29,471 ) $ 9,349 $ (5,728 ) Theatre properties acquired under capital lease $ 33,282 $ 46,727 $ 18,851 Investment in NCM – receipt of common units (see Note 4) $ 11,111 $ 18,363 $ 5,012 Interest expense - NCM (see Note 3) $ — $ — $ (19,724 ) (1) Additions to theatre properties and equipment included in accounts payable as of December 31, 2017 and 2018 were $31,276 and $37,004, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 15. INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation, the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act made changes to the U.S. tax code, which included (1) reduced U.S. corporate tax rate from 35 percent to 21 percent, (2) generally eliminated U.S. federal income taxes on dividends from foreign subsidiaries, (3) a one-time transition tax on certain undistributed earnings of foreign subsidiaries, and (4) created new taxes on certain foreign-sourced earnings. As of December 31, 2018, the amounts recorded for the Tax Act are final for the 2017 transition tax, the re-measurement of deferred taxes, and the Company’s reassessment of valuation allowances. The Company recorded a net additional charge as a result of the Tax Act and its recently issued guidance of $19,180, all non-cash, including a true up of the re-measurement of deferred tax liabilities using the lower U.S. corporate income tax rate and a reduction in a deferred tax asset with regard to foreign tax credit carryforwards. The Company’s provision for federal and foreign income tax expense for continuing operations consisted of the following: Year Ended December 31, 2016 2017 2018 Income before income taxes: U.S. $ 277,474 $ 282,896 $ 292,238 Foreign 85,890 64,842 21,007 Total $ 363,364 $ 347,738 $ 313,245 Current and deferred income taxes were as follows: Year Ended December 31, 2016 2017 2018 Current: Federal $ 66,210 $ 55,224 $ 47,333 Foreign 32,047 29,306 11,822 State 12,061 10,741 13,690 Total current expense $ 110,318 $ 95,271 $ 72,845 Deferred: Federal $ (13,667 ) $ (14,046 ) $ 27,055 Foreign 1,674 (4,270 ) (6,166 ) State 6,526 3,301 2,298 Total deferred taxes $ (5,467 ) $ (15,015 ) $ 23,187 Income taxes $ 104,851 $ 80,256 $ 96,032 A reconciliation between income tax expense and taxes computed by applying the applicable statutory federal income tax rate to income before income taxes follows: Year Ended December 31, 2016 2017 2018 Computed statutory tax expense $ 127,176 $ 121,708 $ 65,781 Foreign inflation adjustments (281 ) — — State and local income taxes, net of federal income tax impact 12,081 12,857 12,686 Foreign losses not benefited and changes in valuation allowance (34,757 ) 249 822 Foreign tax rate differential (942 ) (245 ) 2,235 Foreign dividends 68,684 13,662 — Foreign tax credits (62,815 ) (21,647 ) 3,927 Impacts related to 2017 Tax Act (1)(2) — (44,889 ) 19,180 Changes in uncertain tax positions 921 983 (6,139 ) Other — net (5,216 ) (2,422 ) (2,460 ) Income taxes $ 104,851 $ 80,256 $ 96,032 (1) The year ended December 31, 2018 includes a one-time true-up of deferred taxes of $1,913 and a reduction in deferred tax assets with regard to foreign tax credit carryforwards of $17,267. (2) The year ended December 31, 2017 includes one-time benefit due to re-measurement of net deferred tax liabilities using a lower U.S. corporate tax rate and a reassessment of permanently reinvested earnings of ($79,834), a deemed repatriation tax of $14,512, and a reduction in deferred tax assets with regard to foreign tax credit carryforwards of $20,433. As of December 31, 2018, all earnings invested offshore subject to the Tax Act have been included in the transition tax. As of December 31, 2018, the Company had approximately $415,323 of accumulated undistributed earnings and profits, approximately $373,768 of which was subject to the one-time transition tax pursuant to the Tax Act. Any additional tax due on the repatriation of previously taxed earnings would generally be foreign withholding and U.S. state income taxes. The Company does not intend to repatriate these offshore earnings and profits, and therefore has not recorded any deferred taxes on such earnings. The Company considers any excess of the amount for financial reporting over the tax basis of its investment in its foreign subsidiaries to be indefinitely reinvested. At this time, the determination of deferred tax liabilities on this amount is not practicable. Deferred Income Taxes The tax effects of significant temporary differences and tax loss and tax credit carryforwards comprising the net long-term deferred income tax liabilities as of December 31, 2017 and 2018 consisted of the following: December 31, 2017 2018 Deferred liabilities: Theatre properties and equipment $ 147,208 $ 158,797 Intangible asset — other 30,770 33,561 Intangible asset — tradenames 72,967 73,261 Investment in partnerships 67,449 63,217 Total deferred liabilities 318,394 328,836 Deferred assets: Deferred lease expenses 14,714 13,464 Exchange loss 220 1,306 Deferred revenue - NCM 85,816 70,688 Capital lease obligations 67,369 63,895 Tax impact of items in accumulated other comprehensive income — 2,237 Other tax loss carryforwards 15,564 15,608 Other tax credit carryforwards 38,436 42,989 Other expenses, not currently deductible for tax purposes 13,801 26,776 Total deferred assets 235,920 236,963 Net deferred income tax liability before valuation allowance 82,474 91,873 Valuation allowance against deferred assets – non-current 35,246 54,725 Net deferred income tax liability $ 117,720 $ 146,598 Net deferred tax (asset) liability — Foreign $ 3,073 $ (5,449 ) Net deferred tax liability — U.S. 114,647 152,047 Total $ 117,720 $ 146,598 A significant portion of our foreign tax credit carryforwards expire in 2023. Some foreign net operating losses expired in 2018; however, some losses may be carried forward indefinitely. State net operating losses may be carried forward for periods of between five and twenty years with the last expiring year being 2037. The Company’s valuation allowance changed from $35,246 at December 31, 2017 to $54,725 at December 31, 2018 (see Note 19). The increase was a result of recently issued guidance for the Tax Act and the impact on the estimated usage of foreign tax credit carryforwards before their expiration. Uncertain Tax Positions The following is a reconciliation of the total amounts of unrecognized tax benefits excluding interest and penalties, for the years ended December 31, 2016, 2017 and 2018: Year Ended December 31, 2016 2017 2018 Balance at January 1, $ 17,133 $ 17,403 $ 18,266 Gross increases - tax positions in prior periods 13 92 — Gross decreases - tax positions in prior periods — (12 ) (143 ) Gross increases - current period tax positions 923 265 424 Settlements (924 ) (177 ) (7,191 ) Foreign currency translation adjustments 258 695 (795 ) Balance at December 31, $ 17,403 $ 18,266 $ 10,561 The Company had $20,231 and $13,953 of unrecognized tax benefits, including interest and penalties, as of December 31, 2017 and 2018, respectively. Of these amounts, $20,231 and $13,953 represent the amount of unrecognized tax benefits that, if recognized, would impact the effective income tax rate for the years ended December 31, 2017 and 2018, respectively. The Company had $5,288 and $3,390 accrued for interest and penalties as of December 31, 2017 and 2018, respectively. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and in certain state and foreign jurisdictions and are routinely under audit by many different tax authorities. The Company believes that its accrual for tax liabilities is adequate for all open audit years based on its assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. The Company is no longer subject to income tax audits from the Internal Revenue Service for years before 2015. Additionally, the Company began and concluded an audit from the Internal Revenue Service for the year 2016, with no changes. The Company is no longer subject to state income tax examinations by tax authorities in its major state jurisdictions for years before 2014. The Company is no longer subject to non-U.S. income tax examinations by tax authorities in its major non-U.S. tax jurisdictions for years before 2005. The Company is currently under audit in the non-U.S. tax jurisdiction of Brazil. The Company concluded an audit in Chile in 2018 and recorded a tax benefit of $6,802. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Leases — The Company conducts a significant part of its theatre operations in leased properties under noncancelable leases with terms generally ranging from 10 to 25 years. In addition to the minimum annual lease payments, some of the leases provide for contingent rentals based on operating results of the theatre and some require the payment of taxes, insurance and other costs applicable to the property. The Company can renew, at its option, a substantial portion of the leases at defined or then market rental rates for various periods. Some leases also provide for escalating rent payments throughout the lease term. A liability for deferred lease expenses of $40,929 and $39,235 at December 31, 2017 and 2018, respectively, has been provided to account for lease expenses on a straight-line basis, where lease payments are not made on such a basis. Year Ended December 31, 2016 2017 2018 Fixed rent expense $ 242,927 $ 247,908 $ 248,543 Contingent rent and other facility lease expenses 78,367 80,289 74,773 Total facility lease expense $ 321,294 $ 328,197 $ 323,316 Future minimum lease payments under noncancelable operating and capital leases at December 31, 2018 are as follows (1) Operating Capital Leases Leases 2019 $ 253,323 $ 42,434 2020 242,336 41,502 2021 230,396 34,589 2022 204,628 32,462 2023 176,802 28,534 Thereafter 677,091 166,375 Total $ 1,784,576 345,896 Amounts representing interest payments (86,364 ) Present value of future minimum payments 259,532 Current portion of capital lease obligations (27,065 ) Capital lease obligations, less current portion $ 232,467 (1) Represents amounts before the adoption of ASC Topic 842 – Leases . See Note 2 for discussion of the expected impact of adoption. Employment Agreements — As of December 31, 2018, the Company had employment agreements with Lee Roy Mitchell, Mark Zoradi, Sean Gamble, Valmir Fernandes and Michael Cavalier. The employment agreements are subject to automatic extensions for a one year period, unless the employment agreements are terminated. The base salaries stipulated in the employment agreements are subject to review at least annually during the term of the agreements for increase (but not decrease) by the Company’s Compensation Committee. Management personnel subject to these employment agreements are eligible to receive annual cash incentive bonuses upon the Company meeting certain performance targets established by the Compensation Committee within the first 90 days of the fiscal year. Effective February 20, 2018, the Company and Mr. Zoradi amended his employment agreement extending the term to December 31, 2019. Effective January 2, 2018, Robert Carmony, Executive Vice President – Innovation, retired from the Company and his employment agreement was terminated. Retirement Savings Plan — The Company has a 401(k) retirement savings plan (“401(k) Plan”) for the benefit of all eligible employees and makes matching contributions as determined annually in accordance with the 401(k) Plan. Employer matching contribution payments of $6,380 and $5,076 were made during 2017 and 2018, respectively. A liability of approximately $1,374 was recorded at December 31, 2018 for employer contribution payments to be made in 2019 for the remaining amounts owed for plan year 2018. Silken Brown v. Cinemark USA, Inc., Case No. 3:13cv05669, In the United States District Court for the Northern District of California, San Francisco Division. The case presents putative class action claims for penalties and attorney's fees arising from alleged violations of the California wage statement law. The claim is also asserted as a representative action under the California Private Attorney General Act (PAGA) for penalties. The Court granted class certification. The company denies the claims, denies that class certification is appropriate, denies that the plaintiff has standing to assert the claims alleged and is vigorously defending against the claims. The company denies the claims, denies that class certification is appropriate, denies that the plaintiff has standing to assert the claims alleged and is vigorously defending against the claims. The Company denies any violation of law; however, to avoid the cost and uncertainty associated with litigation the Company and the plaintiff entered into a Joint Stipulation of Class Action Settlement and Release of Claims (the “Settlement Agreement”) to fully and finally dismiss all claims that would be brought in the case. The Settlement Agreement must be approved by the Court. During the year ended December 31, 2018, the Company recorded a litigation reserve based on the proposed Settlement Agreement in loss on disposal of assets and other on the consolidated income statement. Flagship Theatres of Palm Desert, LLC d/b/a Cinemas Palme D’Or v. Century Theatres, Inc., and Cinemark USA, Inc.; Superior Court of the State of California, County of Los Angeles . Plaintiff in this case alleges that the Company violated California antitrust and unfair competition laws by engaging in “circuit dealing” with various motion picture distributors and tortuously interfered with Plaintiff’s business relationships. Plaintiff seeks compensatory damages, trebling of those damages under California law, punitive damages, injunctive relief, attorneys’ fees, costs and interest. Plaintiff also alleges that the Company’s conduct ultimately resulted in closure of its theatre in June 2016. The Company denied the allegations. In 2008, the Company moved for summary judgment on Plaintiff’s claims, arguing primarily that clearances between the theatres at issue were lawful and that Plaintiff lacked proof sufficient to support certain technical elements of its antitrust claims. The trial court granted that motion and dismissed Plaintiff’s claims. Plaintiff appealed and, in 2011, the Court of Appeal reversed, holding, among other things, that Plaintiff’s claims were not about the illegality of clearances but were focused, instead, on “circuit dealing.” Having re-framed the claims in that manner, the Court of Appeal held that the trial court’s decision to limit discovery to the market where the theatres at issue operated was an error, as “circuit dealing” necessarily involves activities in different markets. Upon return to the trial court, the parties engaged in additional, broadened discovery related to Plaintiff’s “circuit dealing” claim. Thereafter, the Company moved again for summary judgment on all of Plaintiff’s claims. That new motion for summary judgment was pending when, on or about April 11, 2014, the trial court granted the Company’s motion for terminating sanctions and entered a judgment dismissing the case with prejudice. Plaintiff then appealed that second dismissal, seeking to have the judgment reversed and the case remanded to the trial court. The Court of Appeal issued a ruling on May 24, 2016, reversing the granting of terminating sanctions and instead imposed a lesser evidentiary and damages preclusion sanction. The case returned to the trial court on October 6, 2016. On May 10, 2018, after a five-week jury trial, the jury found no liability on one circuit dealing claim and awarded Plaintiff damages on the other claim, which are tripled for antitrust damage awards. Plaintiff would also be entitled to certain court costs and to seek at least some portion of its attorney’s fees. During the year ended December 31, 2018, the Company recorded a litigation reserve based on an estimate of the jury award, which is reflected in loss on disposal of assets and other on the consolidated income statement. The trial court denied a motion for a judgment notwithstanding the verdict and a motion for a new trial. The Company intends to appeal the judgment. Although the Company denies that it engaged in any form of circuit dealing, it cannot predict the outcome of its pending motions or future appeals. The Company received a Civil Investigative Demand (“CID”) from the Antitrust Division of the United States Department of Justice. The CID relates to an investigation under Sections 1 and 2 of the Sherman Act. The Company also received CIDs from the Antitrust Section of the Office of the Attorney General of the State of Ohio and later from other states regarding similar inquiries under state antitrust laws. The CIDs request the Company to answer interrogatories, and produce documents, or both, related to the investigation of matters including film clearances, potential coordination and/or communication with other major theatre circuits and related joint ventures. The Company intends to fully cooperate with all federal and state government agencies. Although the Company does not believe that it has violated any federal or state antitrust or competition laws, it cannot predict the ultimate scope, duration or outcome of these investigations. From time to time, the Company is involved in other various legal proceedings arising from the ordinary course of its business operations, such as personal injury claims, employment matters, landlord-tenant disputes, patent claims and contractual disputes, some of which are covered by insurance or by indemnification from vendors. The Company believes its potential liability with respect to these types of proceedings currently pending is not material, individually or in the aggregate, to the Company’s financial position, results of operations and cash flows. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENTS | 17. SEGMENTS The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, because we believe it provides management and investors with additional information to measure the Company’s performance and liquidity, estimate the Company’s value and evaluate the Company’s ability to service debt. In addition, the Company uses Adjusted EBITDA for incentive compensation purposes. The Company does not report asset information by segment because that information is not used to evaluate Company performance or allocate resources between segments. Below is a breakdown of select financial information by reportable operating segment: Year Ended December 31, 2016 2017 2018 Revenues U.S. $ 2,230,693 $ 2,236,237 $ 2,551,719 International 701,573 769,436 682,778 Eliminations (13,501 ) (14,126 ) (12,762 ) Total revenues $ 2,918,765 $ 2,991,547 $ 3,221,735 Adjusted EBITDA U.S. $ 550,150 $ 559,693 $ 650,189 International 157,690 165,576 132,941 Total Adjusted EBITDA $ 707,840 $ 725,269 $ 783,130 Capital expenditures U.S. $ 242,271 $ 321,040 $ 270,870 International 84,637 59,822 75,203 Total capital expenditures $ 326,908 $ 380,862 $ 346,073 (1) Distributions from equity investees are reported entirely within the U.S. operating segment. The following table sets forth a reconciliation of net income to Adjusted EBITDA: Year Ended December 31, 2016 2017 2018 Net income $ 258,513 $ 267,482 $ 217,213 Add (deduct): Income taxes 104,851 80,256 96,032 Interest expense (1) 108,313 105,918 109,994 Loss on debt amendments and refinancing 13,445 521 1,484 Other income (2) (44,813 ) (43,121 ) (18,450 ) Other cash distributions from equity investees (3) 21,916 25,973 30,143 Depreciation and amortization 209,071 237,513 261,162 Impairment of long-lived assets 2,836 15,084 32,372 Loss on disposal of assets and other 20,459 22,812 38,702 Deferred lease expenses (990 ) (1,268 ) (1,320 ) Amortization of long-term prepaid rents 1,826 2,274 2,382 Share based awards compensation expense $ 12,413 $ 11,825 $ 13,416 Adjusted EBITDA $ 707,840 $ 725,269 $ 783,130 (1) Includes amortization of debt issue costs. (2) Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income of affiliates and excludes distributions from NCM. (3) Includes distributions received from equity investees that were recorded as a reduction of the respective investment balances. Financial Information About Geographic Area Below is a breakdown of select financial information by geographic area: Year Ended December 31, 2016 2017 2018 Revenues U.S. $ 2,230,693 $ 2,236,237 $ 2,551,719 Brazil 304,407 341,485 283,009 Other international countries 397,166 427,951 399,769 Eliminations (13,501 ) (14,126 ) (12,762 ) Total $ 2,918,765 $ 2,991,547 $ 3,221,735 December 31, 2017 December 31, 2018 Theatre Properties and Equipment-net U.S. $ 1,439,168 $ 1,479,603 Brazil 179,669 140,570 Other international countries 209,217 212,960 Total $ 1,828,054 $ 1,833,133 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. RELATED PARTY TRANSACTIONS The Company manages theatres for Laredo Theatres, Ltd. (“Laredo”). The Company is the sole general partner and owns 75% of the limited partnership interests of Laredo. Lone Star Theatres, Inc. owns the remaining 25% of the limited partnership interests in Laredo and is 100% owned by Mr. David Roberts, Lee Roy Mitchell’s son-in-law. Lee Roy Mitchell is Cinemark Holdings, Inc.’s Chairman of the Board and directly and indirectly owns approximately 8% of Cinemark Holdings, Inc.’s common stock. Under the agreement, management fees are paid by Laredo to the Company at a rate of 5% of annual theatre revenues up to $50,000 and 3% of annual theatre revenues in excess of $50,000. The Company recorded $506, $586 and $654 of management fee revenues during the years ended December 31, 2016, 2017 and 2018, respectively. All such amounts are included in the Company’s consolidated financial statements with the intercompany amounts eliminated in consolidation. The Company has an Aircraft Time Sharing Agreement with Copper Beech Capital, LLC to use, on occasion, a private aircraft owned by Copper Beech Capital, LLC. Copper Beech Capital, LLC is owned by Mr. Mitchell and his wife, Tandy Mitchell. The private aircraft is used by Mr. Mitchell and other executives who accompany Mr. Mitchell to business meetings for the Company. The Company reimburses Copper Beech Capital, LLC the actual costs of fuel usage and the expenses of the pilots, landing fees, storage fees and similar expenses incurred during the trip. For the years ended December 31, 2016, 2017 and 2018, the aggregate amounts paid to Copper Beech Capital, LLC for the use of the aircraft was approximately $110, $131 and $68, respectively. The Company holds events for its employees and their families at Pinstack, an entertainment facility, at various times throughout the year. Pinstack is majority-owned by Mr. Mitchell and his wife, Tandy Mitchell. In connection with the event, the Company paid Pinstack approximately $70, $36 and $5 during the years ended December 31, 2016, 2017 and 2018, respectively. The Company currently leases 14 theatres and one parking facility from Syufy Enterprises, LP (“Syufy”) or affiliates of Syufy. Raymond Syufy is one of Cinemark Holdings, Inc.’s directors and is an officer of the general partner of Syufy. Of these 15 leases, 14 have fixed minimum annual rent. The one lease without minimum annual rent has rent based upon a specified percentage of gross sales as defined in the lease. For the years ended December 31, 2016, 2017 and 2018, the Company paid total rent of approximately $21,124, $22,483 and $23,447, respectively, to Syufy. The Company has paid certain fees and expenses on behalf of its parent, Cinemark Holdings, Inc. and Cinemark Holdings, Inc. has paid income taxes on behalf of the Company. The Company paid cash dividends to Cinemark Holdings, Inc. of $124,900, $134,500 and $148,750 during the years ended December 31, 2016, 2017 and 2018, respectively. The Company had a receivable from Cinemark Holdings, Inc. of $14,581 and $19,530 as of December 31, 2016, 2017 and 2018, respectively. The Company has a 50% voting interest in FE Concepts, a joint venture with AWSR, an entity owned by Lee Roy Mitchell and Tandy Mitchell. FE Concepts will develop and operate a family entertainment center that offers bowling, gaming, movies and other amenities. See Note 5 for further discussion. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | 19. VALUATION AND QUALIFYING ACCOUNTS The Company’s valuation allowance for deferred tax assets for the years ended December 31, 2016, 2017 and 2018 were as follows: Valuation Allowance for Deferred Taxes Balance at January 1, 2016 $ 50,636 Additions 483 Deductions (36,595 ) Balance at December 31, 2016 $ 14,524 Additions 21,347 Deductions (625 ) Balance at December 31, 2017 $ 35,246 Additions ( 1 ) 22,005 Deductions (2,526 ) Balance at December 31, 2018 $ 54,725 (1) A valuation allowance was provided against certain deferred tax assets arising from carryforwards of unused foreign tax credit benefits. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information of Subsidiary Guarantors | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | |
Condensed Consolidating Financial Information of Subsidiary Guarantors | 20. Condensed Consolidating Financial Information of Subsidiary Guarantors As of December 31, 2018, the Company had outstanding $400,000 aggregate principal amount of 5.125% senior notes due 2022, or the 5.125% Senior Notes, and $755,000 aggregate principal amount of 4.875% senior notes due 2023, or the 4.875% Senior Notes, (collectively the “Notes”). These Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by the following subsidiaries of Cinemark USA, Inc.: Sunnymead Cinema Corp., Cinemark Properties, Inc., Greeley Holdings, Inc., Cinemark Partners I, Inc., CNMK Investments, Inc., CNMK Texas Properties, LLC., Cinemark Concessions LLC, Century Theatres, Inc., Marin Theatre Management, LLC, Century Theatres NG, LLC, Cinearts LLC, Cinearts Sacramento, LLC, Corte Madera Theatres, LLC, Novato Theatres, LLC, San Rafael Theatres, LLC, Northbay Theatres, LLC, Century Theatres Summit Sierra, LLC and Century Theatres Seattle, LLC. The following supplemental condensed consolidating financial information presents: a. Condensed consolidating balance sheet information as of December 31, 2017 and December 31, 2018 and condensed consolidating statements of income information, condensed consolidating statements of comprehensive income information and condensed consolidating statements of cash flows information for the years ended December 31, 2016, 2017 and 2018. b. Cinemark USA, Inc. (the “Parent” and “Issuer”), combined Guarantor Subsidiaries and combined Non-Guarantor Subsidiaries with their investments in subsidiaries accounted for using the equity method of accounting and therefore, the Parent column reflects the equity income of its Guarantor Subsidiaries and Non-Guarantor Subsidiaries, which are also separately reflected in the stand-alone Guarantor Subsidiaries and Non-Guarantor Subsidiaries column. Additionally, the Guarantor Subsidiaries column reflects the equity income (loss) of its Non-Guarantor Subsidiaries, which are also separately reflected in the stand-alone Non-Guarantor Subsidiaries column. c. Elimination entries necessary to consolidate the Parent and all of its Subsidiaries CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION DECEMBER 31, 2017 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Assets Current assets Cash and cash equivalents $ 130,590 $ 180,623 $ 211,202 $ — $ 522,415 Other current assets 59,661 17,841 76,789 (19,270 ) 135,021 Accounts receivable from parent or subsidiaries 117,972 119,616 — (223,007 ) 14,581 Total current assets 308,223 318,080 287,991 (242,277 ) 672,017 Theatre properties and equipment - net 650,783 765,500 411,771 — 1,828,054 Investment in subsidiaries 1,691,626 121,795 — (1,813,421 ) — Other assets 1,427,328 134,845 536,816 (113,720 ) 1,985,269 Total assets $ 4,077,960 $ 1,340,220 $ 1,236,578 $ (2,169,418 ) $ 4,485,340 Liabilities and equity Current liabilities Current portion of long-term debt $ 5,710 $ — $ 1,389 $ — $ 7,099 Current portion of capital lease obligations 9,532 11,124 4,855 — 25,511 Accounts payable and accrued expenses 215,580 116,409 110,089 (6,402 ) 435,676 Accounts payable to parent or subsidiaries — — 223,007 (223,007 ) — Total current liabilities 230,822 127,533 339,340 (229,409 ) 468,286 Long-term liabilities Long-term debt, less current portion 1,878,992 — 11,211 (109,822 ) 1,780,381 Capital lease obligations, less current portion 132,189 75,767 43,195 — 251,151 Other long-term liabilities and deferrals 426,355 60,567 93,871 (16,766 ) 564,027 Total long-term liabilities 2,437,536 136,334 148,277 (126,588 ) 2,595,559 Commitments and contingencies Equity Cinemark USA, Inc.'s stockholder's equity: Common stock 49,543 457,368 10,238 (467,606 ) 49,543 Other stockholder's equity 1,360,059 618,985 726,830 (1,345,815 ) 1,360,059 Total Cinemark USA, Inc. stockholder's equity 1,409,602 1,076,353 737,068 (1,813,421 ) 1,409,602 Noncontrolling interests — — 11,893 — 11,893 Total equity 1,409,602 1,076,353 748,961 (1,813,421 ) 1,421,495 Total liabilities and equity $ 4,077,960 $ 1,340,220 $ 1,236,578 $ (2,169,418 ) $ 4,485,340 CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION DECEMBER 31, 2018 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Assets Current assets Cash and cash equivalents $ 197,965 $ 10,886 $ 217,365 $ — $ 426,216 Other current assets 60,829 19,997 67,149 (15,178 ) 132,797 Accounts receivable from parent or subsidiaries — 284,893 — (265,363 ) 19,530 Total current assets 258,794 315,776 284,514 (280,541 ) 578,543 Theatre properties and equipment - net 664,759 789,536 378,838 - 1,833,133 Investment in subsidiaries 1,806,255 57,845 - (1,864,100 ) - Other assets 1,500,366 155,011 546,834 (112,536 ) 2,089,675 Total assets $ 4,230,174 $ 1,318,168 $ 1,210,186 $ (2,257,177 ) $ 4,501,351 Liabilities and equity Current liabilities Current portion of long-term debt $ 6,595 $ — $ 1,389 $ — $ 7,984 Current portion of capital lease obligations 11,918 9,406 5,741 — 27,065 Accounts payable and accrued expenses 297,302 58,544 96,780 (13,622 ) 439,004 Accounts payable to parent or subsidiaries 40,421 — 224,942 (265,363 ) - Total current liabilities 356,236 67,950 328,852 (278,985 ) 474,053 Long-term liabilities Long-term debt, less current portion 1,872,627 — 7,955 (107,955 ) 1,772,627 Capital lease obligations, less current portion 123,329 59,539 49,599 — 232,467 Other long-term liabilities and deferrals 413,177 60,137 77,844 (6,137 ) 545,021 Total long-term liabilities 2,409,133 119,676 135,398 (114,092 ) 2,550,115 Commitments and contingencies Equity Cinemark USA, Inc.'s stockholder's equity: Common stock 49,543 457,368 10,238 (467,606 ) 49,543 Other stockholder's equity 1,415,262 673,174 723,319 (1,396,494 ) 1,415,261 Total Cinemark USA, Inc. stockholder's equity 1,464,805 1,130,542 733,557 (1,864,100 ) 1,464,804 Noncontrolling interests — — 12,379 — 12,379 Total equity 1,464,805 1,130,542 745,936 (1,864,100 ) 1,477,183 Total liabilities and equity $ 4,230,174 $ 1,318,168 $ 1,210,186 $ (2,257,177 ) $ 4,501,351 CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION YEAR ENDED DECEMBER 31, 2016 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Revenues $ 1,014,713 $ 1,219,218 $ 737,981 $ (53,147 ) $ 2,918,765 Cost of operations Theatre operating expenses 804,041 828,905 540,310 (53,147 ) 2,120,109 General and administrative expenses 13,085 84,453 43,099 — 140,637 Depreciation and amortization 70,654 79,139 59,278 — 209,071 Impairment of long-lived assets 1,929 — 907 — 2,836 Loss on disposal of assets and other 5,613 13,759 1,087 20,459 Total cost of operations 895,322 1,006,256 644,681 (53,147 ) 2,493,112 Operating income 119,391 212,962 93,300 — 425,653 Other income (expense) Interest expense (96,442 ) (7,538 ) (5,642 ) 1,309 (108,313 ) Loss on debt amendments and refinancing (13,445 ) — — — (13,445 ) Distributions from NCM 1,414 — 13,242 — 14,656 Equity in income of affiliates 245,010 58,528 30,370 (301,946 ) 31,962 Other income 351 19 13,790 (1,309 ) 12,851 Total other income 136,888 51,009 51,760 (301,946 ) (62,289 ) Income before income taxes 256,279 263,971 145,060 (301,946 ) 363,364 Income taxes (498 ) 52,277 53,072 — 104,851 Net income 256,777 211,694 91,988 (301,946 ) 258,513 Less: Net income attributable to noncontrolling interests — — 1,736 — 1,736 Net income attributable to Cinemark USA, Inc. $ 256,777 $ 211,694 $ 90,252 $ (301,946 ) $ 256,777 CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION YEAR ENDED DECEMBER 31, 2017 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Revenues $ 1,013,960 $ 1,220,993 $ 807,350 $ (50,756 ) $ 2,991,547 Cost of operations Theatre operating expenses 795,976 834,135 591,223 (50,756 ) 2,170,578 General and administrative expenses 13,176 82,955 54,780 — 150,911 Depreciation and amortization 79,676 87,463 70,374 — 237,513 Impairment of long-lived assets 3,725 1,502 9,857 — 15,084 Loss on disposal of assets and other 16,895 3,372 2,545 — 22,812 Total cost of operations 909,448 1,009,427 728,779 (50,756 ) 2,596,898 Operating income 104,512 211,566 78,571 — 394,649 Other income (expense) Interest expense (94,229 ) (7,675 ) (5,447 ) 1,433 (105,918 ) Loss on debt amendments and refinancing (521 ) — — — (521 ) Distributions from NCM — — 16,407 — 16,407 Equity in income of affiliates 255,594 16,838 33,742 (270,189 ) 35,985 Other income 2,475 1,040 5,054 (1,433 ) 7,136 Total other income 163,319 10,203 49,756 (270,189 ) (46,911 ) Income before income taxes 267,831 221,769 128,327 (270,189 ) 347,738 Income taxes 2,188 69,770 8,298 — 80,256 Net income 265,643 151,999 120,029 (270,189 ) 267,482 Less: Net income attributable to noncontrolling interests — — 1,839 — 1,839 Net income attributable to Cinemark USA, Inc. $ 265,643 $ 151,999 $ 118,190 $ (270,189 ) $ 265,643 CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION YEAR ENDED DECEMBER 31, 2018 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Revenues $ 1,192,478 $ 1,362,043 $ 723,804 $ (56,590 ) $ 3,221,735 Cost of operations Theatre operating expenses 916,726 933,858 541,981 (56,590 ) 2,335,975 General and administrative expenses 11,497 100,407 50,736 — 162,640 Depreciation and amortization 89,429 99,627 72,106 — 261,162 Impairment of long-lived assets 4,118 13,612 14,642 — 32,372 Loss on disposal of assets and other 13,321 23,337 2,044 — 38,702 Total cost of operations 1,035,091 1,170,841 681,509 (56,590 ) 2,830,851 Operating income 157,387 191,202 42,295 - 390,884 Other income (expense) Interest expense (97,585 ) (6,520 ) (7,266 ) 1,377 (109,994 ) Loss on debt amendments and refinancing (1,484 ) — — — (1,484 ) Distributions from NCM — — 15,389 — 15,389 Interest expense - NCM (19,724 ) — — — (19,724 ) Equity in income of affiliates 183,463 (12,561 ) 33,167 (164,827 ) 39,242 Other income 4,287 (14 ) (3,964 ) (1,377 ) (1,068 ) Total other income 68,957 (19,095 ) 37,326 (164,827 ) (77,639 ) Income before income taxes 226,344 172,107 79,621 (164,827 ) 313,245 Income taxes 10,608 68,624 16,800 - 96,032 Net income 215,736 103,483 62,821 (164,827 ) 217,213 Less: Net income attributable to noncontrolling interests — — 1,478 — 1,478 Net income attributable to Cinemark USA, Inc. $ 215,736 $ 103,483 $ 61,343 $ (164,827 ) $ 215,735 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME INFORMATION YEAR ENDED DECEMBER 31, 2016 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Net income $ 256,777 $ 211,694 $ 91,988 $ (301,946 ) $ 258,513 Other comprehensive income, net of tax Unrealized gain due to fair value adjustments on interest rate swap agreements, net of settlements, net of taxes of $138 234 — — — 234 Other comprehensive income of equity method investments 89 — 89 (89 ) 89 Foreign currency translation adjustments 26,361 — 26,394 (26,361 ) 26,394 Total other comprehensive income, net of tax 26,684 — 26,483 (26,450 ) 26,717 Total comprehensive income, net of tax $ 283,461 $ 211,694 $ 118,471 $ (328,396 ) $ 285,230 Comprehensive income attributable to noncontrolling interests — — (1,769 ) — (1,769 ) Comprehensive income attributable to Cinemark USA, Inc. $ 283,461 $ 211,694 $ 116,702 $ (328,396 ) $ 283,461 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME INFORMATION YEAR ENDED DECEMBER 31, 2017 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Net income $ 265,643 $ 151,999 $ 120,029 $ (270,189 ) $ 267,482 Other comprehensive income (loss), net of tax Other comprehensive income of equity method investments 248 — 248 (248 ) 248 Foreign currency translation adjustments (4,966 ) — (4,966 ) 4,966 (4,966 ) Total other comprehensive loss, net of tax (4,718 ) — (4,718 ) 4,718 (4,718 ) Total comprehensive income, net of tax $ 260,925 $ 151,999 $ 115,311 $ (265,471 ) $ 262,764 Comprehensive income attributable to noncontrolling interests — — (1,839 ) — (1,839 ) Comprehensive income attributable to Cinemark USA, Inc. $ 260,925 $ 151,999 $ 113,472 $ (265,471 ) $ 260,925 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME INFORMATION YEAR ENDED DECEMBER 31, 2018 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Net income $ 215,736 $ 103,483 $ 62,821 $ (164,827 ) $ 217,213 Other comprehensive loss, net of tax Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes of $1,243, net of settlements (3,851 ) — — — (3,851 ) Other comprehensive loss of equity method investments (139 ) — (139 ) 139 (139 ) Foreign currency translation adjustments (62,253 ) — (62,253 ) 62,253 (62,253 ) Total other comprehensive loss, net of tax (66,243 ) — (62,392 ) 62,392 (66,243 ) Total comprehensive income, net of tax $ 149,493 $ 103,483 $ 429 $ (102,435 ) $ 150,970 Comprehensive income attributable to noncontrolling interests — — (1,478 ) — (1,478 ) Comprehensive income attributable to Cinemark USA, Inc. $ 149,493 $ 103,483 $ (1,049 ) $ (102,435 ) $ 149,492 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION YEAR ENDED DECEMBER 31, 2016 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Operating activities Net income $ 256,777 $ 211,694 $ 91,988 $ (301,946 ) $ 258,513 Adjustments to reconcile net income to cash provided by operating activities (178,147 ) 55,128 53,381 301,946 232,308 Changes in assets and liabilities 154,085 (164,005 ) (18,642 ) — (28,562 ) Net cash provided by operating activities 232,715 102,817 126,727 — 462,259 Investing activities Additions to theatre properties and equipment (108,439 ) (130,843 ) (87,626 ) — (326,908 ) Acquisition of theatres in the U.S. (15,300 ) — — — (15,300 ) Acquisition of screen advertising business — — (1,450 ) — (1,450 ) Proceeds from sale of theatre properties and equipment and other 2,912 374 284 — 3,570 Proceeds from sale of marketable securities 13,451 — — — 13,451 Intercompany note issuances (4,455 ) — — 4,455 Dividends received from subsidiaries 26,033 229,649 — (255,682 ) — Investment in joint ventures and other (1,000 ) — (132 ) — (1,132 ) Net cash provided by (used for) investing activities (86,798 ) 99,180 (88,924 ) (251,227 ) (327,769 ) Financing activities Dividends paid to parent (124,900 ) — (255,682 ) 255,682 (124,900 ) Proceeds from issuance of Senior Notes, net of discount 222,750 — — — 222,750 Retirement of Senior Subordinated Notes (200,000 ) — — — (200,000 ) Repayments of long-term debt (15,201 ) — (1,404 ) — (16,605 ) Payments of debt issue costs (7,217 ) — — — (7,217 ) Fees paid related to debt amendments (11,076 ) — — — (11,076 ) Intercompany loan proceeds — — 4,455 (4,455 ) - Payments on capital leases (6,645 ) (10,005 ) (2,693 ) — (19,343 ) Other 1,863 (6,834 ) (1,759 ) — (6,730 ) Net cash used for financing activities (140,426 ) (16,839 ) (257,083 ) 251,227 (163,121 ) Effect of exchange rate changes on cash and cash equivalents — — 1,266 — 1,266 Increase (decrease) in cash and cash equivalents 5,491 185,158 (218,014 ) — (27,365 ) Cash and cash equivalents: Beginning of year 141,364 95,865 351,274 — 588,503 End of year $ 146,855 $ 281,023 $ 133,260 $ — $ 561,138 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION YEAR ENDED DECEMBER 31, 2017 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Operating activities Net income $ 265,643 $ 151,999 $ 120,029 $ (270,189 ) $ 267,482 Adjustments to reconcile net income to cash provided by operating activities (122,559 ) 71,023 33,515 270,189 252,168 Changes in assets and liabilities 18,223 (35,138 ) 25,649 — 8,734 Net cash provided by operating activities 161,307 187,884 179,193 — 528,384 Investing activities Additions to theatre properties and equipment (146,385 ) (172,874 ) (61,603 ) — (380,862 ) Acquisition of theatres in the U.S. and international markets, net of cash acquired (12,500 ) - (28,497 ) — (40,997 ) Proceeds from sale of theatre properties and equipment and other 2,149 12,271 678 — 15,098 Dividends received from subsidiaries 127,600 1,873 — (129,473 ) — Investment in joint ventures and other — (104 ) (3,611 ) — (3,715 ) Net cash used for investing activities (29,136 ) (158,834 ) (93,033 ) (129,473 ) (410,476 ) Financing Activities Dividends paid to parent (134,500 ) (127,000 ) (2,473 ) 129,473 (134,500 ) Repayments of long-term debt (4,282 ) — (1,389 ) — (5,671 ) Payments on capital leases (7,952 ) (9,707 ) (4,066 ) — (21,725 ) Fees paid related to debt amendments (521 ) — — — (521 ) Proceeds from financing lease — 10,200 — — 10,200 Other (1,181 ) (2,943 ) (1,088 ) — (5,212 ) Net cash provided by financing activities (148,436 ) (129,450 ) (9,016 ) 129,473 (157,429 ) Effect of exchange rate changes on cash and cash equivalents — — 798 — 798 Increase (decrease) in cash and cash equivalents (16,265 ) (100,400 ) 77,942 — (38,723 ) Cash and cash equivalents: Beginning of year 146,855 281,023 133,260 — 561,138 End of year $ 130,590 $ 180,623 $ 211,202 $ — $ 522,415 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION YEAR ENDED DECEMBER 31, 2018 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Operating activities Net income $ 215,736 $ 103,483 $ 62,821 $ (164,827 ) $ 217,213 Adjustments to reconcile net income to cash provided by operating activities (36,894 ) 162,811 55,915 164,827 346,659 Changes in assets and liabilities 229,325 (233,263 ) (3,635 ) — (7,573 ) Net cash provided by operating activities 408,167 33,031 115,101 — 556,299 Investing activities Additions to theatre properties and equipment (91,244 ) (173,042 ) (81,787 ) — (346,073 ) Acquisition of theatres in international markets, net of cash acquired — — (11,289 ) — (11,289 ) Proceeds from sale of theatre properties and equipment and other 1,244 2,025 651 — 3,920 Proceeds from intercompany note repayments 1,867 — — (1,867 ) — Acquisition of NCM common units (78,393 ) — — — (78,393 ) Investment in joint ventures and other — (19,896 ) 361 — (19,535 ) Net cash used for investing activities (166,526 ) (190,913 ) (92,064 ) (1,867 ) (451,370 ) Financing activities Dividends paid to parent (148,750 ) — — — (148,750 ) Repayments of long-term debt (7,984 ) — — — (7,984 ) Payment of debt issue costs (5,218 ) — — — (5,218 ) Payments on capital leases (11,610 ) (8,950 ) (4,793 ) — (25,353 ) Payments on intercompany loans — - (1,867 ) 1,867 — Other (704 ) (2,905 ) (992 ) — (4,601 ) Net cash used for financing activities (174,266 ) (11,855 ) (7,652 ) 1,867 (191,906 ) Effect of exchange rate changes on cash and cash equivalents — — (9,222 ) — (9,222 ) Increase (decrease) in cash and cash equivalents 67,375 (169,737 ) 6,163 — (96,199 ) Cash and cash equivalents: Beginning of year 130,590 180,623 211,202 — 522,415 End of year $ 197,965 $ 10,886 $ 217,365 $ — $ 426,216 * * * * * |
Unaudited Supplemental Schedule
Unaudited Supplemental Schedules | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Financial Information For Indentures [Abstract] | |
Unaudited Supplemental Schedules | UNAUDITED SUPPLEMENTAL SCHEDULES As required by the indentures governing the Company’s 5.125% Senior Notes and 4.875% Senior Notes (collectively the “Notes”), the Company has included in this filing, financial information for its subsidiaries that have been designated as unrestricted subsidiaries as defined by the indentures. As required by the indentures governing the Notes, the Company has included a condensed consolidating balance sheet and condensed consolidating statements of income, comprehensive income and cash flows for the Company and its subsidiaries. These supplementary schedules separately identify the Company’s restricted subsidiaries and unrestricted subsidiaries as required by the indentures. CINEMARK USA, INC. AND SUBSIDIARIES DECEMBER 31, 2018 (In thousands) Restricted Unrestricted Group Group Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 370,460 $ 55,756 $ — $ 426,216 Other current assets 267,077 (106,143 ) (8,607 ) 152,327 Total current assets 637,537 (50,387 ) (8,607 ) 578,543 Theatre properties and equipment, net 1,833,133 — — 1,833,133 Other assets 1,916,169 522,225 (348,719 ) 2,089,675 Total assets $ 4,386,839 $ 471,838 $ (357,326 ) $ 4,501,351 Liabilities and equity Current liabilities Current portion of long-term debt $ 6,595 $ 1,389 $ — $ 7,984 Current portion of capital lease obligations 27,065 — — 27,065 Accounts payable and accrued expenses 447,610 1 (8,607 ) 439,004 Total current liabilities 481,270 1,390 (8,607 ) 474,053 Long-term liabilities Long-term debt, less current portion 2,014,327 - (241,700 ) 1,772,627 Capital lease obligations, less current portion 232,467 — — 232,467 Other long-term liabilities and deferrals 484,528 60,493 — 545,021 Total long-term liabilities 2,731,322 60,493 (241,700 ) 2,550,115 Commitments and contingencies Equity 1,174,247 409,955 (107,019 ) 1,477,183 Total liabilities and equity $ 4,386,839 $ 471,838 $ (357,326 ) $ 4,501,351 Note: "Restricted Group" and "Unrestricted Group" are defined in the indentures for the senior notes. CINEMARK USA, INC. AND SUBSIDIARIES YEAR ENDED DECEMBER 31, 2018 (In thousands) Restricted Unrestricted Group Group Eliminations Consolidated Revenues $ 3,221,735 $ — $ — $ 3,221,735 Cost of operations — Theatre operating costs 2,335,975 — — 2,335,975 General and administrative expenses 162,645 (5 ) — 162,640 Depreciation and amortization 261,162 — — 261,162 Impairment of long-lived assets 32,372 — — 32,372 Loss on sale of assets and other 38,702 — — 38,702 Total cost of operations 2,830,856 (5 ) — 2,830,851 Operating income (loss) 390,879 5 — 390,884 Other income (expense) (154,545 ) 76,906 — (77,639 ) Income before income taxes 236,334 76,911 — 313,245 Income taxes 72,086 23,946 — 96,032 Net income 164,248 52,965 — 217,213 Less: Net income attributable to noncontrolling interests 1,478 — — 1,478 Net income attributable to Cinemark USA, Inc. $ 162,770 $ 52,965 $ — $ 215,735 Note: "Restricted Group" and "Unrestricted Group" are defined in the indentures for the senior notes. CINEMARK USA, INC. AND SUBSIDIARIES COMPREHENSIVE INCOME INFORMATION YEAR ENDED DECEMBER 31, 2018 (In thousands) Restricted Unrestricted Group Group Eliminations Consolidated Net income $ 164,248 $ 52,965 $ — $ 217,213 Other comprehensive income, net of tax Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes of $1,243, net of settlements (3,851 ) — — (3,851 ) Other comprehensive loss in equity method investments — (139 ) — (139 ) Foreign currency translation adjustments (62,253 ) — — (62,253 ) Total other comprehensive income (loss), net of tax (66,104 ) (139 ) — (66,243 ) Total comprehensive income, net of tax 98,144 52,826 — 150,970 Comprehensive income attributable to noncontrolling interests (1,478 ) — — (1,478 ) Comprehensive income attributable to Cinemark USA, Inc. $ 96,666 $ 52,826 $ — $ 149,492 Note: "Restricted Group" and "Unrestricted Group" are defined in the indentures for the senior notes. CINEMARK USA, INC. AND SUBSIDIARIES YEAR ENDED DECEMBER 31, 2018 (In thousands) Restricted Unrestricted Group Group Eliminations Consolidated Operating activities Net income $ 164,248 $ 52,965 $ - $ 217,213 Adjustments to reconcile net income to cash provided by operating activities 343,793 2,866 — 346,659 Changes in assets and liabilities 32,060 (39,633 ) — (7,573 ) Net cash provided by operating activities 540,101 16,198 — 556,299 Investing activities Additions to theatre properties and equipment and other (346,073 ) — — (346,073 ) Proceeds from sale of theatre properties and equipment and other 3,920 — — 3,920 Acquisition of theatres in international markets, net of cash acquired (11,289 ) — — (11,289 ) Loans to affiliates - (21,700 ) 21,700 — Acquisition of NCM common units (78,393 ) — — (78,393 ) Investment in joint ventures and other (19,896 ) 361 — (19,535 ) Net cash used for investing activities (451,731 ) (21,339 ) 21,700 (451,370 ) Financing activities Dividends paid to parent (148,750 ) — — (148,750 ) Borrowings from affiliate 21,700 — (21,700 ) — Repayments on long-term debt (7,984 ) - — (7,984 ) Payment of debt issue costs (5,218 ) - — (5,218 ) Payments on capital leases (25,353 ) — — (25,353 ) Other (4,601 ) — — (4,601 ) Net cash used for financing activities (170,206 ) — (21,700 ) (191,906 ) Effect of exchange rate changes on cash and cash equivalents (9,222 ) — — (9,222 ) Decrease in cash and cash equivalents (91,058 ) (5,141 ) — (96,199 ) Cash and cash equivalents: Beginning of year 461,518 60,897 — 522,415 End of year $ 370,460 $ 55,756 $ — $ 426,216 Note: "Restricted Group" and "Unrestricted Group" are defined in the indentures for the senior notes. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Business | Business — Cinemark USA, Inc. and subsidiaries (the “Company”), a wholly-owned subsidiary of Cinemark Holdings, Inc., operates in the motion picture exhibition industry, with theatres in the United States (“U.S.”), Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curaçao and Paraguay. |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of Cinemark USA, Inc. and its subsidiaries. Majority-owned subsidiaries that the Company has control of are consolidated while those affiliates of which the Company owns between 20% and 50% and does not control are accounted for under the equity method. Those affiliates of which the Company owns less than 20% are generally accounted for under the cost method, unless the Company is deemed to have the ability to exercise significant influence over the affiliate, in which case the Company would account for its investment under the equity method. The results of these equity method investees are included in the consolidated financial statements effective with their formation or from their dates of acquisition. Intercompany balances and transactions are eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents consist of operating funds held in financial institutions, petty cash held by the theatres and highly liquid investments with original maturities of three months or less when purchased. Cash investments are primarily in money market funds, certificates of deposit or other similar funds. |
Accounts Receivable | Accounts Receivable – Accounts receivable, which are recorded at net realizable value, consist primarily of receivables related to screen advertising, receivables related to discounted tickets and gift cards sold third party to retail locations, receivables from landlords related to theatre construction and remodels, rebates earned from the Company’s concession vendors and value-added and other non-income tax receivables. |
Inventories | Inventories — Concession and theatre supplies inventories are stated at the lower of cost (first-in, first-out method) or market. |
Theatre Properties and Equipment | Theatre Properties and Equipment — Theatre properties and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows: Category Useful Life Buildings on owned land 40 years Buildings on leased land Lesser of lease term or useful life Land and buildings under capital and finance leases (1) Lesser of lease term or useful life Theatre furniture and equipment 3 to 15 years Leasehold improvements Lesser of lease term or useful life (1) The Company reviews long-lived assets for impairment indicators on a quarterly basis or whenever events or changes in circumstances indicate the carrying amount of the assets may not be fully recoverable. The Company also performs a full quantitative impairment evaluation on an annual basis. The Company considers actual theatre level cash flows, budgeted theatre level cash flows, theatre property and equipment carrying values, amortizing intangible asset carrying values, the age of a recently built theatre, competitive theatres in the marketplace, the impact of recent ticket price changes, the impact of recent theatre remodels or other substantial improvements, available lease renewal options and other factors considered relevant in its impairment assessment. Long-lived assets are evaluated for impairment on a theatre basis, which the Company believes is the lowest applicable level for which there are identifiable cash flows. The impairment evaluation is based on the estimated undiscounted cash flows from continuing use through the remainder of the theatre’s useful life. The remainder of the theatre’s useful life correlates with the remaining lease period, which includes the probability of the exercise of available renewal periods or extensions, for leased properties and the lesser of twenty years or the building’s remaining useful life for owned properties. If the estimated undiscounted cash flows are not sufficient to recover a long-lived asset’s carrying value, the Company then compares the carrying value of the asset group (theatre) with its estimated fair value. When the estimated fair value is determined to be lower than the carrying value of the asset group, the asset group is written down to its estimated fair value. Significant judgment is involved in estimating cash flows and fair value. Management’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820-10-35, are based on historical and projected operating performance, recent market transactions and current industry trading multiples. Fair value is determined based on a multiple of cash flows, which was six and a half times for the evaluations performed during 2016, 2017 and 2018. The long-lived asset impairment charges recorded during each of the periods presented are specific to theatres that were directly and individually impacted by increased competition, adverse changes in market demographics, or adverse changes in the development or the conditions of the areas surrounding the theatre. See Note 7 for further discussion. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets — The Company evaluates goodwill for impairment annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value of the goodwill may not be fully recoverable. The Company evaluates goodwill for impairment at the reporting unit level and we have allocated goodwill to the reporting unit based on an estimate of its relative fair value. Management considers the reporting unit to be each of its twenty regions in the U.S. and seven of its international countries with Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala considered one reporting unit (the Company does not have goodwill recorded for all of its international locations). Under ASC Topic 350, Goodwill, Intangibles and Other (“ASC Topic 350”), the Company may perform a qualitative impairment assessment or a quantitative impairment assessment of our goodwill. A quantitative analysis requires the Company to estimate the fair value of each reporting unit and compare it with its carrying value. If the carrying value of the reporting unit exceeds its estimated fair value, goodwill would be written down such that the carrying value would equal estimated fair value. Fair value is determined based on a multiple of cash flows, which was eight times for the evaluations performed during 2017 and 2018. Significant judgment is involved in estimating cash flows and fair value. Management’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy as defined by FASB ASC Topic 820-10-35, are based on historical and projected operating performance, recent market transactions and current industry trading multiples. Fair value is determined based on a multiple of cash flows, which was eight times for the evaluations performed during 2017 and 2018. A qualitative assessment includes consideration of historical and expected future industry performance, estimated future performance of the Company, current industry trading multiples and other economic factors, and a review of current carrying values to estimated fair values as determined during our most recent quantitative assessment. We performed a qualitative assessment for all reporting units for the year ended December 31, 2016. We performed a quantitative goodwill impairment analysis for all reporting units during the year ended December 31, 2017. For the year ended December 31, 2018, we performed a quantitative goodwill assessment for three new domestic reporting units and a qualitative assessment for all other reporting units. We did not record any goodwill impairment charges as a result of the assessments performed during the years ended December 31, 2016, 2017 and 2018. Tradename 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. Under ASC Topic 350, the Company can elect to perform a qualitative or quantitative impairment assessment for our tradename intangible assets. A quantitative tradename impairment assessment includes comparing the carrying values of tradename assets to an estimated fair value. Fair values are estimated by applying an estimated market royalty rate that could be charged for the use of our tradename to forecasted future revenues, with an adjustment for the present value of such royalties. If the estimated fair value is less than the carrying value, the tradename intangible asset is written down to its estimated fair value. Significant judgment is involved in estimating market royalty rates and long-term revenue forecasts. Management’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy as defined by FASB ASC Topic 820-10-35, are based on historical and projected revenue performance and industry trends. A qualitative assessment considers our historical and forecasted revenues and changes in estimated royalty rates, and a comparison of current carrying values to estimated fair values from our most recent quantitative assessment. During the year ended December 31, 2016, the Company performed a quantitative tradename impairment assessment for our tradename in Ecuador and performed a qualitative tradename impairment analysis for all other tradename intangible assets. During the year ended December 31, 2017, the Company performed quantitative tradename impairment evaluations for all of its tradename assets. During the year ended December 31, 2018, the Company performed a qualitative tradename impairment analysis for all of its tradename assets. As a result of the analysis performed during each year, no impairment charges were recorded related to tradename intangible assets for the years ended December 31, 2016, 2017 and 2018. The table below summarizes the Company’s intangible assets and the amortization method used for each type of intangible asset: Intangible Asset Amortization Method Goodwill Indefinite-lived Tradename Indefinite-lived and definite-lived. Definite-lived tradename assets have a remaining useful life of approximately two to eight years. Vendor contracts Straight-line method over the terms of the underlying contracts. The remaining term of the underlying contract is two years. Favorable/unfavorable leases Based on the pattern in which the economic benefits are realized over the terms of the lease agreements. The remaining terms of the lease agreements range from approximately one to eighteen years. See Note 2 for discussion of the expected impact of new lease accounting pronouncements. Other intangible assets Straight-line method over the terms of the underlying agreement or the expected useful life of the intangible asset. The remaining useful lives of these intangible assets range from two to eight years. |
Deferred Charges and Other Assets | Deferred Charges and Other Assets — Deferred charges and other assets consist of long-term prepaid rents, construction and other deposits, equipment to be placed in service, and other assets of a long-term nature. Long-term prepaid rents represent prepayments of rent on operating leases, which are recognized as facility lease expense over the period for which the rent was paid in advance as outlined in the lease agreements. The remaining amortization periods generally range from one to seventeen years. See Note 2 for discussion of the expected impact of new lease accounting pronouncements. |
Lease Accounting | Lease Accounting — The Company evaluates each lease for classification as either a capital lease or an operating lease. The Company records the lease as a capital lease at its inception if 1) the present value of future minimum lease payments exceeds 90% of the leased property’s estimated fair value; 2) the lease term exceeds 75% of the property’s estimated useful life; 3) the lease contains a bargain purchase option; or 4) ownership transfers to the Company at the end of the lease. The Company performs this evaluation at the inception of the lease and when a modification is made to a lease. If the lease agreement calls for a scheduled rent increase during the lease term, the Company recognizes the lease expense on a straight-line basis over the lease term. The Company determines the straight-line rent expense impact of an operating lease upon inception of the lease. For some newly built theatres, the landlord is responsible for constructing the theatre using guidelines and specifications agreed to by the Company and assumes substantially all of the risks of construction. For other theatres, the Company is responsible for managing construction of the theatre and the landlord contributes an agreed upon amount toward the costs of construction. If the Company concludes that it has substantially all of the construction period risks, it considers itself the owner of the property during the construction period. At the end of the construction period, the Company determines if the transaction qualifies for sale-leaseback accounting treatment in regards to lease classification. If the Company receives a lease incentive payment from a landlord, the Company records the proceeds as a deferred lease incentive liability and amortizes the liability as a reduction in rent expense over the initial term of the lease if a new theatre, or over the remaining lease term if an existing theatre. See Note 2 for discussion of the expected impact of new lease accounting pronouncements. |
Deferred Revenues | Deferred Revenues — Advances collected on long-term screen advertising, concession and other contracts are recorded as deferred revenues. In accordance with the terms of the agreements, the advances collected on such contracts are recognized during the period in which the advances are earned, which may differ from the period in which the advances are collected. These advances are recognized on either a straight-line basis over the term of the contracts or as such revenues are earned in accordance with the terms of the contracts. In addition, the Company records deferred revenues for sales of gift cards and discounted ticket vouchers, as well as for proceeds received from its monthly subscription program, annual membership fees for certain of its loyalty programs and for points issued to customers under other loyalty programs. See Note 3 for further discussion of revenue recognition and Note 4 for discussion of deferred revenue – NCM. |
Self-Insurance Reserves | Self-Insurance Reserves — In the U.S., the Company is self-insured for general liability claims subject to an annual cap. For the years ended December 31, 2016, 2017 and 2018, general liability claims were capped at $100, $250 and $250, respectively, per occurrence with aggregate annual caps of approximately $3,350, $3,900 and $4,750, respectively. For its international locations, the Company is fully insured for general liability claims with little or no deductibles per occurrence. In the U.S., the Company was fully insured for workers compensation claims during the year ended December 31, 2016. During 2017, the Company implemented a fully-funded deductible workers compensation insurance plan under which the Company is responsible for pre-funding claims and is responsible for claims up to $250 per occurrence, with an annual cap of $5,000 for the years ended December 31, 2017 and 2018. The Company was also self-insured for domestic medical claims up to $150, $250 and $250 per occurrence for the years ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2017 and 2018, the Company’s insurance reserves were $8,252 and $10,827, respectively, and are reflected in accrued other current liabilities on the consolidated balance sheets |
Revenue and Expense Recognition | Revenue and Expense Recognition — See Note 3 for discussion of revenue recognition. Film rental costs are accrued based on the applicable box office receipts and either firm terms or a sliding scale formula, which are generally established prior to the opening of the film, or estimates of the final settlement rate, which occurs at the conclusion of the film run, subject to the film licensing arrangement. Under a firm terms formula, the Company pays the distributor a percentage of box office receipts, which reflects either an aggregate rate for the life of the film or rates that decline over the term of the run. Under a sliding scale formula, film rental is paid as a percentage of box office revenues using a pre-determined matrix based upon box office performance of the film. The settlement process allows for negotiation of film rental fees upon the conclusion of the film run based upon how the film performs. Estimates are based on the expected success of a film. The success of a film can typically be determined a few weeks after a film is released when initial box office performance of the film is known. Accordingly, final settlements typically approximate estimates since box office receipts are known at the time the estimate is made and the expected success of a film can typically be estimated early in the film’s run. If actual settlements are different than those estimates, film rental costs are adjusted at the time of settlement. |
Loyalty Programs | Loyalty Programs – The Company launched its domestic app-based loyalty program, Connections, in February 2016. Customers earn points for various transactions as tracked within the app. Points may be redeemed for movie tickets, concessions items, concession discounts and experiential rewards, each of which are offered for limited periods of time and at varying times during the year. For the years ended December 31, 2016 and 2017, the Company applied the incremental cost approach to accounting for the rewards earned, as it determined that the values of the rewards offered to the customer are insignificant to the original transactions required to earn such rewards. The Company also has loyalty programs in certain of its international markets, which generally consist of the customer paying a membership fee in exchange for discounts during the membership period. Effective January 1, 2018, the Company adopted ASC Topic 606 and now accounts for its points-based loyalty programs by deferring a portion of the revenue associated with the transaction that earned such points. See Note 3 for discussion of revenue recognition as it relates to the Company’s loyalty programs. |
Accounting for Share Based Awards | Accounting for Share Based Awards — The Company measures the cost of employee services received in exchange for an equity award based on the fair value of the award on the date of the grant. The grant date fair value is estimated using a market observed price. Such costs are recognized over the period during which an employee is required to provide service in exchange for the award (which is usually the vesting period). At the time of the grant, the Company also estimates the number of awards that will ultimately be forfeited. See Note 13 for discussion of the Company’s share based awards and related compensation expense. |
Income Taxes | Income Taxes — The Company uses an asset and liability approach to financial accounting and reporting for income taxes. Deferred income taxes are provided when tax laws and financial accounting standards differ with respect to the amount of income for a year and the basis of assets and liabilities. A valuation allowance is recorded to reduce the carrying amount of deferred tax assets unless it is more likely than not that such assets will be realized. Income taxes are provided on unremitted earnings from foreign subsidiaries unless such earnings are expected to be indefinitely reinvested. Income taxes have also been provided for potential tax assessments. The evaluation of an uncertain tax position is a two-step process. The first step is recognition: The Company determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company should presume that the position would be examined by the appropriate taxing authority that would have full knowledge of all relevant information. The second step is measurement: A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements result in (1) a change in a liability for income taxes payable or (2) a change in an income tax refund receivable, a deferred tax asset or a deferred tax liability or both (1) and (2). The Company accrues interest and penalties on its uncertain tax positions as a component of income tax expense. U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation, the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act made changes to the U.S. tax code, which included (1) reduced U.S. corporate tax rate from 35 percent to 21 percent, (2) generally eliminated U.S. federal income taxes on dividends from foreign subsidiaries, (3) a one-time transition tax on certain undistributed earnings of foreign subsidiaries, and (4) created new taxes on certain foreign-sourced earnings. As of December 31, 2018, the amounts recorded for the Tax Act are final for the 2017 transition tax, the re-measurement of deferred taxes, and our reassessment of valuation allowances. See further discussion at Note 15. |
Segments | Segments — For the years ended December 31, 2016, 2017 and 2018, the Company managed its business under two reportable operating segments, U.S. markets and international markets. See Note 17. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. The Company’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. |
Foreign Currency Translations | Foreign Currency Translations — The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at current exchange rates as of the balance sheet date, and revenues and expenses are translated at average monthly exchange rates. The resulting translation adjustments are recorded in the consolidated balance sheets in accumulated other comprehensive loss. See Note 11 for a summary of the translation adjustments recorded in accumulated other comprehensive loss for the years ended December 31, 2016, 2017 and 2018. The Company recognizes foreign currency transaction gains and losses when changes in exchange rates impact transactions, other than intercompany transactions of a long-term investment nature, that have been denominated in a currency other than the functional currency. |
Fair Value Measurements | Fair Value Measurements — According to authoritative guidance, inputs used in fair value measurements fall into three different categories; Level 1, Level 2 and Level 3. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. See Note 10 for a discussion of our fair value measurements for the year ended December 31, 2018. |
Acquisitions | Acquisitions — The Company accounts for acquisitions under the acquisition method of accounting. The acquisition method requires that the acquired assets and liabilities, including contingencies, be recorded at fair value determined on the acquisition date and changes thereafter reflected in income. For certain acquisitions, the Company obtains independent third party valuation studies for certain of the assets acquired and liabilities assumed to assist the Company in determining fair value. The estimation of the fair values of the assets acquired and liabilities assumed involves a number of estimates and assumptions that could differ materially from the actual amounts realized. The Company provides assumptions, including both quantitative and qualitative information, about the specified asset or liability to the third party valuation firms. The Company primarily utilizes the third parties to accumulate comparative data from multiple sources and assemble a report that summarizes the information obtained. The Company then uses the information to record estimated fair value. The third party valuation firms are supervised by Company personnel who are knowledgeable about valuations and fair value. The Company evaluates the appropriateness of the assumptions and valuation methodologies utilized by the third party valuation firm. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Estimated Useful Life of Assets | Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows: Category Useful Life Buildings on owned land 40 years Buildings on leased land Lesser of lease term or useful life Land and buildings under capital and finance leases (1) Lesser of lease term or useful life Theatre furniture and equipment 3 to 15 years Leasehold improvements Lesser of lease term or useful life (1) |
Amortization Method Used for Intangible Assets | The table below summarizes the Company’s intangible assets and the amortization method used for each type of intangible asset: Intangible Asset Amortization Method Goodwill Indefinite-lived Tradename Indefinite-lived and definite-lived. Definite-lived tradename assets have a remaining useful life of approximately two to eight years. Vendor contracts Straight-line method over the terms of the underlying contracts. The remaining term of the underlying contract is two years. Favorable/unfavorable leases Based on the pattern in which the economic benefits are realized over the terms of the lease agreements. The remaining terms of the lease agreements range from approximately one to eighteen years. See Note 2 for discussion of the expected impact of new lease accounting pronouncements. Other intangible assets Straight-line method over the terms of the underlying agreement or the expected useful life of the intangible asset. The remaining useful lives of these intangible assets range from two to eight years. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Summary of Revenues Disaggregated Based on Type of Good Or Service By Reportable Operating Segment and On Timing of Revenue Recognition | The following table presents revenues for the year ended December 31, 2018, disaggregated based on major type of good or service and by reportable operating segment. Twelve Months Ended December 31, 2018 U.S. International Operating Operating Major Goods/Services Segment (1) Segment Consolidated Admissions revenues $ 1,461,151 $ 373,022 $ 1,834,173 Concession revenues 892,391 216,402 1,108,793 Screen advertising and promotional revenues 78,591 61,269 139,860 Other revenues 106,824 32,085 138,909 Total revenues $ 2,538,957 $ 682,778 $ 3,221,735 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. The following table presents revenues for the year ended December 31, 2018, disaggregated based on timing of revenue recognition (as discussed above). Twelve Months Ended December 31, 2018 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 2,453,313 $ 608,347 $ 3,061,660 Goods and services transferred over time 85,644 74,431 160,075 Total $ 2,538,957 $ 682,778 $ 3,221,735 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. |
Changes in Deferred Revenues | The following table presents changes in the Company’s deferred revenues for the year ended December 31, 2018. Deferred Revenues Deferred Revenue - NCM Other Deferred Revenues (1) Total Balance at January 1, 2018 $ 351,706 $ 86,498 $ 438,204 Impact of adoption of ASC Topic 606 (53,605 ) — (53,605 ) Amounts recognized as accounts receivable — 6,921 6,921 Cash received from customers in advance — 156,237 156,237 Common units received from NCM (see Note 6) 5,012 — 5,012 Revenue recognized during period (15,764 ) (141,176 ) (156,940 ) Foreign currency translation adjustments — (2,405 ) (2,405 ) Balance at December 31, 2018 $ 287,349 $ 106,075 $ 393,424 (1) Includes liabilities associated with outstanding gift cards and SuperSavers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the consolidated balance sheet. |
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized | The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2018 and when the Company expects to recognize this revenue. Twelve Months Ended December 31, Remaining Performance Obligations 2019 2020 2021 2022 2023 Thereafter Total Deferred revenue - NCM $ 15,831 $ 15,831 $ 15,831 $ 15,831 $ 15,831 $ 208,194 $ 287,349 Deferred revenue - other 89,523 16,146 207 199 — — 106,075 Total $ 105,354 $ 31,977 $ 16,038 $ 16,030 $ 15,831 $ 208,194 $ 393,424 |
Adoption of ASC Topic 606 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Summary of Impact Upon Adoption of ASC Topic 606 on Statements of Income and Cash Flows and Balance Sheet | The significant changes discussed above had the following impact on the Company’s statements of income and cash flows for the year ended December 31, 2018: Without Adoption of ASC 606 Impact of Adoption of ASC 606 As Reported Statement of income: Admissions revenues $ 1,839,723 $ (5,550 ) $ 1,834,173 Concession revenues $ 1,110,703 $ (1,910 ) $ 1,108,793 Other revenues $ 161,743 $ 117,026 $ 278,769 Utilities and other expense $ 354,740 $ 93,330 $ 448,070 Interest expense - NCM $ — $ 19,724 $ 19,724 Statement of cash flows: Amortization of deferred revenues, deferred lease incentives and other $ (17,602 ) $ (4,104 ) $ (21,706 ) Changes in other assets and liabilities - Other long-term liabilities $ 4,375 $ 7,592 $ 11,967 The impact of adoption of ASC 606 on the Company’s balance sheet as of December 31, 2018 was as follows: Without Adoption of ASC 606 Impact of Adoption of ASC 606 As Reported Balance sheet line items: Deferred revenue - NCM (1) $ 345,058 $ (57,709 ) $ 287,349 Long-term deferred tax liability $ 142,547 $ 13,079 $ 155,626 Other long-term liabilities $ 41,839 $ 7,592 $ 49,431 Retained earnings $ 440,054 $ 40,526 $ 480,580 (1) Includes the cumulative effect of accounting change of $53,605 recorded on January 1, 2018 and the full year impact of the change in amortization method of $4,104 during the year ended December 31, 2018. |
Investment in National CineMe_2
Investment in National CineMedia LLC (Tables) - NCM | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Common Units Received Under Common Unit Adjustment Agreement | Below is a summary of common units received by the Company under the Common Unit Adjustment (“CUA”) Agreement during the years ended December 31, 2016, 2017 and 2018: Event Date Common Units Received Number of Common Units Received Fair Value of Common Units Received 2016 annual common unit adjustment 3/31/2016 753,598 $ 11,111 2017 annual common unit adjustment 3/31/2017 1,487,218 $ 18,363 2018 annual common unit adjustment 3/29/2018 908,042 $ 5,012 |
Summary of Activity With Equity Investee Included in the Company's Condensed Consolidated Financial Statements | Below is a summary of activity with NCM included in the Company’s consolidated financial statements for the periods indicated. See Note 3 for discussion of impact of new revenue recognition accounting pronouncements. Investment in NCM Deferred Revenue Distributions from NCM Equity in Earnings Other Revenue Interest Expense - NCM (3) Cash Received (Paid) Balance as of January 1, 2016 $ 183,755 $ (342,134 ) Receipt of common units due to annual common unit adjustment 11,111 (11,111 ) $ — $ — $ — $ — $ — Revenues earned under ESA (1) — — — — (11,048 ) — 11,048 Receipt of excess cash distributions (11,233 ) — (11,483 ) — — — 22,716 Receipt under tax receivable agreement (2,985 ) — (3,173 ) — — — 6,158 Equity in earnings 9,347 — — (9,347 ) — — — Amortization of deferred revenue — 9,317 — — (9,317 ) — — Balance as of and for the twelve months ended December 31, 2016 $ 189,995 $ (343,928 ) $ (14,656 ) $ (9,347 ) $ (20,365 ) $ — $ 39,922 Receipt of common units due to annual common unit adjustment 18,363 (18,363 ) $ — $ — $ — $ — $ — Revenues earned under ESA (1) — — — — (11,274 ) — 11,274 Receipt of excess cash distributions (15,093 ) — (14,158 ) — — — 29,251 Receipt under tax receivable agreement (2,265 ) — (2,249 ) — — — 4,514 Equity in earnings 9,550 — — (9,550 ) — — — Amortization of deferred revenue — 10,585 — — (10,585 ) — — Balance as of and for the twelve months ended December 31, 2017 $ 200,550 $ (351,706 ) $ (16,407 ) $ (9,550 ) $ (21,859 ) $ — $ 45,039 Impact of adoption of ASC Topic 606 (2) — 53,605 $ — $ — $ — $ — $ — Receipt of common units due to annual common unit adjustment 5,012 (5,012 ) — — — — — Purchase of additional common units 78,393 — — — — — — Revenues earned under ESA (1)(3) — — — — (31,867 ) 19,724 12,143 Receipt of excess cash distributions (19,786 ) — (13,231 ) — — — 33,017 Receipt under tax receivable agreement (2,419 ) — (2,158 ) — — — 4,577 Equity in earnings 13,842 — — (13,842 ) — — — Amortization of deferred revenue (2) — 15,764 — — (15,764 ) — — Balance as of and for the twelve months ended December 31, 2018 $ 275,592 $ (287,349 ) $ (15,389 ) $ (13,842 ) $ (47,631 ) $ 19,724 $ 49,737 (1) Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire. The amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire were approximately $10,523, $11,110 and $11,965 for the years ended December 31, 2016, 2017 and 2018, respectively. (2) As a result of adoption of ASC Topic 606, the Company determined that the deferred revenue associated with the ESA and CUA agreement should be amortized on a straight-line basis versus the units of revenue method followed prior to adoption. The Company recorded a reduction in the deferred revenue balance and a cumulative effect of a change in accounting principle in retained earnings. See Note 3 for further discussion of the impact of the adoption of ASC Topic 606. (3) Reflects the impact of significant financing component related to amounts received in advance under the ESA and CUA agreement. See Note 3. |
Summary Financial Information | The tables below present summary financial information for NCM for the periods indicated: Year Ended Year Ended Year Ended December 29, 2016 December 28, 2017 December 27, 2018 Revenues $ 447,600 $ 426,100 $ 441,400 Operating income $ 173,000 $ 153,900 $ 154,300 Net income $ 109,300 $ 101,900 $ 98,400 As of As of December 28, 2017 December 27, 2018 Current assets $ 174,400 $ 172,700 Noncurrent assets $ 758,300 $ 726,800 Current liabilities $ 123,300 $ 115,200 Noncurrent liabilities $ 925,400 $ 924,900 Members' deficit $ (116,000 ) $ (140,600 ) |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Activity for Each of Company's Other Investments | Below is a summary of activity for each of the Company’s other investments for the periods indicated: DCIP RealD AC LLC DCDC FE Concepts Other Total Balance at January 1, 2016 $ 71,579 $ 12,900 $ 7,269 $ 2,562 $ — $ 663 $ 94,973 Cash contributions 717 — — — — 415 1,132 Equity in income 21,434 — 311 870 — — 22,615 Equity in comprehensive income 89 — — — — — 89 Sale of investment (1) — (12,900 ) — — — — (12,900 ) Cash distributions received (6,000 ) — (1,600 ) (98 ) — — (7,698 ) Other (2) — — — (584 ) — 690 106 Balance at December 31, 2016 $ 87,819 $ — $ 5,980 $ 2,750 $ — $ 1,768 $ 98,317 Cash contributions 1,112 — — — 104 2,499 3,715 Equity in income 22,900 — 2,336 1,199 — — 26,435 Equity in comprehensive income 248 — — — — — 248 Cash distributions received (5,864 ) — (2,400 ) (351 ) — — (8,615 ) Other — — — — — (55 ) (55 ) Balance at December 31, 2017 $ 106,215 $ — $ 5,916 $ 3,598 $ 104 $ 4,212 $ 120,045 Cash contributions 2,076 — — — 20,000 — 22,076 Equity in income (loss) 22,899 — 1,270 1,313 (82 ) — 25,400 Equity in comprehensive loss (139 ) — — — — — (139 ) Cash distributions received (5,799 ) — (1,920 ) (219 ) — — (7,938 ) Other (2) — — — (2,437 ) (104 ) (137 ) (2,678 ) Balance at December 31, 2018 $ 125,252 $ — $ 5,266 $ 2,255 $ 19,918 $ 4,075 $ 156,766 (1) RealD, Inc (2) |
Digital Cinema Implementation Partners | |
Summary Financial Information | Below is summary financial information for DCIP as of and for the years ended December 31, 2016, 2017 and 2018: Year ended December 31, 2016 2017 2018 Revenues $ 178,836 $ 177,382 $ 172,534 Operating income $ 107,919 $ 106,687 $ 102,236 Net income $ 89,152 $ 93,103 $ 94,757 As of December 31, 2017 December 31, 2018 Current assets $ 56,296 $ 57,907 Noncurrent assets $ 772,438 $ 684,545 Current liabilities $ 59,153 $ 67,408 Noncurrent liabilities $ 296,889 $ 125,596 Members' equity $ 472,692 $ 549,448 |
Transactions with DCIP | The Company had the following transactions with DCIP during the years ended December 31, 2016, 2017 and 2018: Year Ended December 31, 2016 2017 2018 Equipment lease payments $ 5,217 $ 5,743 $ 4,862 Warranty reimbursements from DCIP $ (6,091 ) $ (8,511 ) $ (10,800 ) Management services fees $ 825 $ 823 $ 730 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS - NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The Company’s goodwill was as follows: U.S. Operating Segment International Operating Segment Total Balance at December 31, 2016 (1) $ 1,164,163 $ 98,800 $ 1,262,963 Acquisitions of theatres (2) 9,878 13,211 23,089 Foreign currency translation adjustments — (1,973 ) (1,973 ) Balance at December 31, 2017 (1) $ 1,174,041 $ 110,038 $ 1,284,079 Acquisitions of theatres (3) — 7,204 7,204 Foreign currency translation adjustments — (14,959 ) (14,959 ) Balance at December 31, 2018 (1) $ 1,174,041 $ 102,283 $ 1,276,324 (1) Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. (2) (3) Amount represents preliminary purchase price allocation for theatres acquired in Brazil. |
Intangible Assets | As of December 31, intangible assets-net, consisted of the following: Balance at Balance at January 1, December 31, 2017 Additions (1) Amortization Other (2) 2017 Intangible assets with finite lives: Gross carrying amount $ 99,796 $ 11,584 $ — $ (5,485 ) $ 105,895 Accumulated amortization (64,606 ) — (5,563 ) 1,300 (68,869 ) Total net intangible assets with finite lives $ 35,190 $ 11,584 $ (5,563 ) $ (4,185 ) $ 37,026 Intangible assets with indefinite lives: Tradename 299,709 — — 26 299,735 Total intangible assets — net $ 334,899 $ 11,584 $ (5,563 ) $ (4,159 ) $ 336,761 Balance at Balance at January 1, December 31, 2018 Additions (3) Amortization Other (2) 2018 Intangible assets with finite lives: Gross carrying amount $ 105,895 $ 1,203 $ — $ (1,842 ) $ 105,256 Accumulated amortization (68,869 ) — (5,734 ) — (74,603 ) Total net intangible assets with finite lives $ 37,026 $ 1,203 $ (5,734 ) $ (1,842 ) $ 30,653 Intangible assets with indefinite lives: Tradename and other 299,735 853 — (331 ) 300,257 Total intangible assets — net $ 336,761 $ 2,056 $ (5,734 ) $ (2,173 ) $ 330,910 (1) Activity for 2017 represent fair values allocated to intangible assets acquired as part of acquisitions of theatres in the U.S. and international markets. (2) Amounts represent foreign currency translation adjustments and the write-off of certain lease intangibles for theatre closures and lease amendments. (3) Amount for intangible assets with finite lives represents preliminary purchase price allocation for theatres acquired in Brazil. |
Estimated Aggregate Future Amortization Expense for Intangible Assets | Estimated aggregate future amortization expense for intangible assets is as follows ( 1) For the year ended December 31, 2019 $ 4,785 For the year ended December 31, 2020 5,053 For the year ended December 31, 2021 2,904 For the year ended December 31, 2022 2,812 For the year ended December 31, 2023 3,161 Thereafter 11,938 Total $ 30,653 |
IMPAIRMENT OF LONG-LIVED ASSE_2
IMPAIRMENT OF LONG-LIVED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | |
Long-Lived Asset Impairment Charges | The Company’s long-lived asset impairment losses are summarized in the following table: Year Ended December 31, 2016 2017 2018 U.S. theatre properties $ 1,929 $ 5,227 $ 18,597 International theatre properties 907 9,857 13,775 Impairment of long-lived assets $ 2,836 $ 15,084 $ 32,372 |
Deferred Charges and Other A_2
Deferred Charges and Other Assets - Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Deferred Charges and Other Assets Net | As of December 31, deferred charges and other assets — net consisted of the following: December 31, 2017 2018 Long-term prepaid rents (1) $ 7,762 $ 15,943 Construction and other deposits 12,167 8,183 Equipment to be placed in service 13,868 10,466 Other 5,970 6,463 Total $ 39,767 $ 41,055 (1) |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | As of December 31, long-term debt consisted of the following: December 31, 2017 2018 Cinemark USA, Inc. term loan $ 659,517 $ 652,922 Cinemark USA, Inc. 5.125% senior notes due 2022 400,000 400,000 Cinemark USA, Inc. 4.875% senior notes due 2023 755,000 755,000 Other (1) 2,778 1,389 Total long-term debt 1,817,295 1,809,311 Less current portion 7,099 7,984 Less debt issuance costs, net of accumulated amortization of $25,549 and $30,289, respectively 29,815 28,700 Long-term debt, less current portion $ 1,780,381 $ 1,772,627 (1) Represents debt owed to NCM in relation to the joint venture AC JV, LLC. See Note 5. |
Amendment of Credit Agreement | Cinemark USA, Inc. made the following amendments to its Credit Agreement as follows during 2016, 2017 and 2018: Debt Issue Loss on Debt Effective Date Nature of Amendment Costs Paid (1) Amendment (2) June 13, 2016 Reduced term loan interest rate by 0.25% $ 783 $ 249 December 15, 2016 Reduced term loan interest rate by 0.50% $ 2,446 $ 161 June 16, 2017 Reduced term loan interest rate by 0.25%; modified certain definitions and other provisions in the Credit Agreement $ 521 $ 190 November 28, 2017 Extended maturity of revolving credit line to December 2022; reduced the interest rate applicable to borrowings under the credit line $ 330 $ 331 March 29, 2018 Extended maturity of term loan to March 2025; reduced term loan interest rate by 0.25%; reduced real property mortgage requirements $ 4,962 $ 1,484 (1) Reflected as a reduction of long term debt on the consolidated balance sheet. (2) Reflected as a loss on debt amendments and refinancing on the consolidated statement of income for the year in which the amendments were effective. |
Maturities of Long-Term Debt, Excluding Unamortized Debt Issuance Costs | The Company’s long-term debt, excluding unamortized debt issuance costs, at December 31, 2018 matures as follows: 2019 $ 7,984 2020 6,595 2021 6,595 2022 406,595 2023 761,595 Thereafter 619,947 Total $ 1,809,311 |
Summary of Interest Rate Swap Agreements | Below is a summary of the Company’s interest rate swap agreements designated as cash flow hedges as of December 31, 2018: Estimated Fair Value at Notional December 31, Amount Effective Date Pay Rate Receive Rate Expiration Date 2018 (1) $ 175,000 December 31, 2018 2.751% 1-Month LIBOR December 31, 2022 $ 1,983 $ 137,500 December 31, 2018 2.765% 1-Month LIBOR December 31, 2022 $ 1,624 $ 137,500 December 31, 2018 2.746% 1-Month LIBOR December 31, 2022 $ 1,486 Total $ 5,093 (1) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Liabilities Measured at Fair Value on Recurring Basis | Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of December 31, 2018: Carrying Fair Value Description Value Level 1 Level 2 Level 3 Interest rate swap liabilities $ (5,093 ) $ — $ — $ (5,093 ) |
Reconciliation of Beginning and Ending Balance for Liabilities Measured at Fair Value | Below is a reconciliation of the beginning and ending balance for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Liabilities (1) 2018 Beginning balance - January 1 $ — Interest rate swaps effective December 31, 2018 5,093 Ending balance - December 31 $ 5,093 (1) Represents interest rate swap liabilities. See Note 11 for further discussion. |
FOREIGN CURRENCY TRANSLATION (T
FOREIGN CURRENCY TRANSLATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Impact of Translating Financial Statements of Companies International Subsidiaries | Below is a summary of the impact of translating the financial statements of all of the Company’s international subsidiaries as of and for the years ended December 31, 2016, 2017 and 2018. Other Comprehensive Income (Loss) Exchange Rate as of December 31, For the Year Ended December 31, Country 2016 2017 2018 2016 2017 2018 Brazil 3.26 3.31 3.88 $ 37,286 $ (4,567 ) $ (34,086 ) Argentina (1) 16.04 18.65 37.68 (13,362 ) (8,200 ) (14,357 ) Colombia 3,000.71 2,936.67 3,249.75 1,278 246 (1,795 ) Chile 679.09 615.97 694.74 1,855 5,672 (8,924 ) Peru 3.45 3.24 3.39 87 2,752 (2,136 ) All other (783 ) (869 ) (955 ) $ 26,361 $ (4,966 ) $ (62,253 ) (1) Amount represents the cumulative comprehensive loss recorded for Argentina through June 30, 2018. The impact of translating Argentina financial results to U.S. dollars, beginning July 1, 2018, which was not significant, has been recorded in foreign currency exchange gain (loss) on the Company’s consolidated statement of income. |
NONCONTROLLING INTERESTS IN S_2
NONCONTROLLING INTERESTS IN SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests in Subsidiaries | Noncontrolling interests in subsidiaries of the Company were as follows at December 31: December 31, 2017 2018 Cinemark Partners II — 24.6% interest (in one theatre) $ 8,795 $ 8,152 Laredo Theatres – 25% interest (in two theatres) 1,746 2,308 Greeley Ltd. — 49% interest (in one theatre) 843 1,411 Other 509 508 Total $ 11,893 $ 12,379 |
Summary of Impact of Changes in Company's Ownership Interest in its Subsidiaries on its Equity | Below is a summary of the impact of changes in the Company’s ownership interest in its subsidiaries on its equity: Year ended December 31, 2016 2017 2018 Net income attributable to Cinemark USA, Inc. $ 256,777 $ 265,643 $ 215,735 Transfers from noncontrolling interests Decrease in Cinemark USA, Inc. additional paid-in-capital for the buyout of Flix Impirica non-controlling interest (27 ) — — Net transfers from non-controlling interests (27 ) — — Change from net income attributable to Cinemark USA, Inc. and transfers from noncontrolling interests $ 256,750 $ 265,643 $ 215,735 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Restricted Stock Unit Financial Performance Thresholds and Vesting Rates | The financial performance factors and respective vesting rates for each of the 2016, 2017 and 2018 grants are as follows: Year Ended December 31, Percentage of Shares Vesting 2016 2017 2018 Threshold IRR 6.0% 7.0% 7.0% 33.3% Target IRR 8.0% 9.5% 9.5% 66.6% Maximum IRR 10.0% 13.0% 13.0% 100.0% |
Number of Units Vested Under Restricted Stock Unit Awards | Below is a table summarizing the potential number of units that could vest under restricted stock unit awards granted during the years ended December 31, 2016, 2017 and 2018 at each of the three levels of financial performance (excluding forfeitures): Granted During the Year Ended December 31, 2016 2017 2018 Number of Value at Number of Value at Number of Value at Units Grant (1) Units Grant (1) Units Grant (1) at threshold IRR 84,554 $ 2,522 58,545 $ 2,481 76,065 $ 2,967 at target IRR 169,107 $ 5,044 117,089 $ 4,961 152,129 $ 5,938 at maximum IRR 253,661 $ 7,568 175,634 $ 7,442 228,194 $ 8,906 (1) The grant date fair values for units issued during the years ended December 31, 2016 and 2017 were $29.83 and $42.37, respectively. The grant date fair values for the units issued during the year ended December 31, 2018 ranged from $37.55 to $39.03. |
Restricted Stock | |
Summary of Restricted Stock Award Activity | Below is a summary of restricted stock award activity recorded for the periods indicated. Year Ended December 31, 2016 2017 2018 Compensation expense recognized by the Company during the period $ 7,269 $ 7,528 $ 8,735 Additional compensation expense recognized by Cinemark Holdings, Inc. during the period $ 981 $ 856 $ 920 Fair value of restricted shares held by Company employees that vested during the period $ 13,739 $ 7,255 $ 8,699 Fair value of restricted shares held by Cinemark Holdings, Inc.’s directors that vested during the period $ 923 $ 917 $ 802 Income tax benefit recognized upon vesting of restricted stock awards held by Company employees $ 5,167 $ 2,281 $ 1,543 Additional income tax benefit recognized upon vesting of restricted stock awards held by Cinemark Holdings, Inc.'s directors $ 388 $ 386 $ 201 |
Cinemark Holdings, Inc. | |
Summary of Restricted Stock Activity | Below is a summary of restricted stock activity for Cinemark Holdings, Inc. for the years ended December 31, 2016, 2017 and 2018: Year Ended Year Ended Year Ended December 31, 2016 December 31, 2017 December 31, 2018 Shares of Restricted Stock Weighted Average Grant Date Fair Value Shares of Restricted Stock Weighted Average Grant Date Fair Value Shares of Restricted Stock Weighted Average Grant Date Fair Value Outstanding at January 1 757,775 $ 30.73 606,618 $ 33.51 650,581 $ 35.81 Granted 335,707 $ 30.98 246,534 $ 41.70 328,734 $ 38.72 Vested (430,056 ) $ 26.60 (192,230 ) $ 36.26 (250,442 ) $ 31.27 Forfeited (56,808 ) $ 33.81 (10,341 ) $ 33.48 (24,520 ) $ 38.62 Outstanding at December 31 606,618 $ 33.51 650,581 $ 35.81 704,353 $ 38.68 |
Cinemark Holdings, Inc. | Restricted Stock Units (RSUs) | |
Summary of Restricted Stock Unit Award Activity | Below is a summary of activity for restricted stock unit awards for Cinemark Holdings, Inc. for the periods indicated: Year Ended December 31, 2016 2017 2018 Number of restricted stock unit awards that vested during the period 213,984 97,115 127,084 Fair value of restricted stock unit awards that vested during the period $ 7,260 $ 4,155 $ 4,846 Accumulated dividends paid upon vesting of restricted stock unit awards $ 662 $ 558 $ 526 Compensation expense recognized during the period $ 5,144 $ 4,297 $ 4,681 Income tax benefit recognized upon vesting of restricted stock unit awards $ 3,049 $ 1,745 $ 708 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information to Consolidated Statements of Cash Flows | The following is provided as supplemental information to the consolidated statements of cash flows: Year Ended December 31, 2016 2017 2018 Cash paid for interest $ 108,101 $ 99,232 $ 98,411 Cash paid for income taxes, net of refunds received $ 93,368 $ 95,043 $ 64,199 Noncash investing and financing activities: Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment (1) $ (29,471 ) $ 9,349 $ (5,728 ) Theatre properties acquired under capital lease $ 33,282 $ 46,727 $ 18,851 Investment in NCM – receipt of common units (see Note 4) $ 11,111 $ 18,363 $ 5,012 Interest expense - NCM (see Note 3) $ — $ — $ (19,724 ) (1) Additions to theatre properties and equipment included in accounts payable as of December 31, 2017 and 2018 were $31,276 and $37,004, respectively. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | The Company’s provision for federal and foreign income tax expense for continuing operations consisted of the following: Year Ended December 31, 2016 2017 2018 Income before income taxes: U.S. $ 277,474 $ 282,896 $ 292,238 Foreign 85,890 64,842 21,007 Total $ 363,364 $ 347,738 $ 313,245 |
Current and Deferred Income Taxes | Current and deferred income taxes were as follows: Year Ended December 31, 2016 2017 2018 Current: Federal $ 66,210 $ 55,224 $ 47,333 Foreign 32,047 29,306 11,822 State 12,061 10,741 13,690 Total current expense $ 110,318 $ 95,271 $ 72,845 Deferred: Federal $ (13,667 ) $ (14,046 ) $ 27,055 Foreign 1,674 (4,270 ) (6,166 ) State 6,526 3,301 2,298 Total deferred taxes $ (5,467 ) $ (15,015 ) $ 23,187 Income taxes $ 104,851 $ 80,256 $ 96,032 |
Reconciliation Between Income Tax Expense and Taxes Computed | A reconciliation between income tax expense and taxes computed by applying the applicable statutory federal income tax rate to income before income taxes follows: Year Ended December 31, 2016 2017 2018 Computed statutory tax expense $ 127,176 $ 121,708 $ 65,781 Foreign inflation adjustments (281 ) — — State and local income taxes, net of federal income tax impact 12,081 12,857 12,686 Foreign losses not benefited and changes in valuation allowance (34,757 ) 249 822 Foreign tax rate differential (942 ) (245 ) 2,235 Foreign dividends 68,684 13,662 — Foreign tax credits (62,815 ) (21,647 ) 3,927 Impacts related to 2017 Tax Act (1)(2) — (44,889 ) 19,180 Changes in uncertain tax positions 921 983 (6,139 ) Other — net (5,216 ) (2,422 ) (2,460 ) Income taxes $ 104,851 $ 80,256 $ 96,032 (1) The year ended December 31, 2018 includes a one-time true-up of deferred taxes of $1,913 and a reduction in deferred tax assets with regard to foreign tax credit carryforwards of $17,267. (2) The year ended December 31, 2017 includes one-time benefit due to re-measurement of net deferred tax liabilities using a lower U.S. corporate tax rate and a reassessment of permanently reinvested earnings of ($79,834), a deemed repatriation tax of $14,512, and a reduction in deferred tax assets with regard to foreign tax credit carryforwards of $20,433. |
Tax Effects of Significant Temporary Differences and Tax Loss and Tax Credit Carryforwards | The tax effects of significant temporary differences and tax loss and tax credit carryforwards comprising the net long-term deferred income tax liabilities as of December 31, 2017 and 2018 consisted of the following: December 31, 2017 2018 Deferred liabilities: Theatre properties and equipment $ 147,208 $ 158,797 Intangible asset — other 30,770 33,561 Intangible asset — tradenames 72,967 73,261 Investment in partnerships 67,449 63,217 Total deferred liabilities 318,394 328,836 Deferred assets: Deferred lease expenses 14,714 13,464 Exchange loss 220 1,306 Deferred revenue - NCM 85,816 70,688 Capital lease obligations 67,369 63,895 Tax impact of items in accumulated other comprehensive income — 2,237 Other tax loss carryforwards 15,564 15,608 Other tax credit carryforwards 38,436 42,989 Other expenses, not currently deductible for tax purposes 13,801 26,776 Total deferred assets 235,920 236,963 Net deferred income tax liability before valuation allowance 82,474 91,873 Valuation allowance against deferred assets – non-current 35,246 54,725 Net deferred income tax liability $ 117,720 $ 146,598 Net deferred tax (asset) liability — Foreign $ 3,073 $ (5,449 ) Net deferred tax liability — U.S. 114,647 152,047 Total $ 117,720 $ 146,598 |
Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties | The following is a reconciliation of the total amounts of unrecognized tax benefits excluding interest and penalties, for the years ended December 31, 2016, 2017 and 2018: Year Ended December 31, 2016 2017 2018 Balance at January 1, $ 17,133 $ 17,403 $ 18,266 Gross increases - tax positions in prior periods 13 92 — Gross decreases - tax positions in prior periods — (12 ) (143 ) Gross increases - current period tax positions 923 265 424 Settlements (924 ) (177 ) (7,191 ) Foreign currency translation adjustments 258 695 (795 ) Balance at December 31, $ 17,403 $ 18,266 $ 10,561 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Rent Expenses from Operating Leases | Theatre rent expense was as follows: Year Ended December 31, 2016 2017 2018 Fixed rent expense $ 242,927 $ 247,908 $ 248,543 Contingent rent and other facility lease expenses 78,367 80,289 74,773 Total facility lease expense $ 321,294 $ 328,197 $ 323,316 |
Estimated Future Minimum Lease Payments (Net of Noncancelable Sublease Rentals) Under Capital Leases | Future minimum lease payments under noncancelable operating and capital leases at December 31, 2018 are as follows (1) Operating Capital Leases Leases 2019 $ 253,323 $ 42,434 2020 242,336 41,502 2021 230,396 34,589 2022 204,628 32,462 2023 176,802 28,534 Thereafter 677,091 166,375 Total $ 1,784,576 345,896 Amounts representing interest payments (86,364 ) Present value of future minimum payments 259,532 Current portion of capital lease obligations (27,065 ) Capital lease obligations, less current portion $ 232,467 (1) Represents amounts before the adoption of ASC Topic 842 – Leases . See Note 2 for discussion of the expected impact of adoption. |
Estimated Future Minimum Lease Payments (Net of Noncancelable Sublease Rentals) Under Operating Leases | Future minimum lease payments under noncancelable operating and capital leases at December 31, 2018 are as follows (1) Operating Capital Leases Leases 2019 $ 253,323 $ 42,434 2020 242,336 41,502 2021 230,396 34,589 2022 204,628 32,462 2023 176,802 28,534 Thereafter 677,091 166,375 Total $ 1,784,576 345,896 Amounts representing interest payments (86,364 ) Present value of future minimum payments 259,532 Current portion of capital lease obligations (27,065 ) Capital lease obligations, less current portion $ 232,467 (1) Represents amounts before the adoption of ASC Topic 842 – Leases . See Note 2 for discussion of the expected impact of adoption. |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Reportable Operating Segment | Below is a breakdown of select financial information by reportable operating segment: Year Ended December 31, 2016 2017 2018 Revenues U.S. $ 2,230,693 $ 2,236,237 $ 2,551,719 International 701,573 769,436 682,778 Eliminations (13,501 ) (14,126 ) (12,762 ) Total revenues $ 2,918,765 $ 2,991,547 $ 3,221,735 Adjusted EBITDA U.S. $ 550,150 $ 559,693 $ 650,189 International 157,690 165,576 132,941 Total Adjusted EBITDA $ 707,840 $ 725,269 $ 783,130 Capital expenditures U.S. $ 242,271 $ 321,040 $ 270,870 International 84,637 59,822 75,203 Total capital expenditures $ 326,908 $ 380,862 $ 346,073 (1) Distributions from equity investees are reported entirely within the U.S. operating segment. |
Reconciliation of Net Income to Adjusted EBITDA | The following table sets forth a reconciliation of net income to Adjusted EBITDA: Year Ended December 31, 2016 2017 2018 Net income $ 258,513 $ 267,482 $ 217,213 Add (deduct): Income taxes 104,851 80,256 96,032 Interest expense (1) 108,313 105,918 109,994 Loss on debt amendments and refinancing 13,445 521 1,484 Other income (2) (44,813 ) (43,121 ) (18,450 ) Other cash distributions from equity investees (3) 21,916 25,973 30,143 Depreciation and amortization 209,071 237,513 261,162 Impairment of long-lived assets 2,836 15,084 32,372 Loss on disposal of assets and other 20,459 22,812 38,702 Deferred lease expenses (990 ) (1,268 ) (1,320 ) Amortization of long-term prepaid rents 1,826 2,274 2,382 Share based awards compensation expense $ 12,413 $ 11,825 $ 13,416 Adjusted EBITDA $ 707,840 $ 725,269 $ 783,130 (1) Includes amortization of debt issue costs. (2) Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income of affiliates and excludes distributions from NCM. (3) Includes distributions received from equity investees that were recorded as a reduction of the respective investment balances. |
Selected Financial Information by Geographic Area | Below is a breakdown of select financial information by geographic area: Year Ended December 31, 2016 2017 2018 Revenues U.S. $ 2,230,693 $ 2,236,237 $ 2,551,719 Brazil 304,407 341,485 283,009 Other international countries 397,166 427,951 399,769 Eliminations (13,501 ) (14,126 ) (12,762 ) Total $ 2,918,765 $ 2,991,547 $ 3,221,735 December 31, 2017 December 31, 2018 Theatre Properties and Equipment-net U.S. $ 1,439,168 $ 1,479,603 Brazil 179,669 140,570 Other international countries 209,217 212,960 Total $ 1,828,054 $ 1,833,133 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation Allowance for Deferred Tax Assets | The Company’s valuation allowance for deferred tax assets for the years ended December 31, 2016, 2017 and 2018 were as follows: Valuation Allowance for Deferred Taxes Balance at January 1, 2016 $ 50,636 Additions 483 Deductions (36,595 ) Balance at December 31, 2016 $ 14,524 Additions 21,347 Deductions (625 ) Balance at December 31, 2017 $ 35,246 Additions ( 1 ) 22,005 Deductions (2,526 ) Balance at December 31, 2018 $ 54,725 (1) A valuation allowance was provided against certain deferred tax assets arising from carryforwards of unused foreign tax credit benefits. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information of Subsidiary Guarantors (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | |
Condensed Consolidating Balance Sheet Information | CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION DECEMBER 31, 2017 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Assets Current assets Cash and cash equivalents $ 130,590 $ 180,623 $ 211,202 $ — $ 522,415 Other current assets 59,661 17,841 76,789 (19,270 ) 135,021 Accounts receivable from parent or subsidiaries 117,972 119,616 — (223,007 ) 14,581 Total current assets 308,223 318,080 287,991 (242,277 ) 672,017 Theatre properties and equipment - net 650,783 765,500 411,771 — 1,828,054 Investment in subsidiaries 1,691,626 121,795 — (1,813,421 ) — Other assets 1,427,328 134,845 536,816 (113,720 ) 1,985,269 Total assets $ 4,077,960 $ 1,340,220 $ 1,236,578 $ (2,169,418 ) $ 4,485,340 Liabilities and equity Current liabilities Current portion of long-term debt $ 5,710 $ — $ 1,389 $ — $ 7,099 Current portion of capital lease obligations 9,532 11,124 4,855 — 25,511 Accounts payable and accrued expenses 215,580 116,409 110,089 (6,402 ) 435,676 Accounts payable to parent or subsidiaries — — 223,007 (223,007 ) — Total current liabilities 230,822 127,533 339,340 (229,409 ) 468,286 Long-term liabilities Long-term debt, less current portion 1,878,992 — 11,211 (109,822 ) 1,780,381 Capital lease obligations, less current portion 132,189 75,767 43,195 — 251,151 Other long-term liabilities and deferrals 426,355 60,567 93,871 (16,766 ) 564,027 Total long-term liabilities 2,437,536 136,334 148,277 (126,588 ) 2,595,559 Commitments and contingencies Equity Cinemark USA, Inc.'s stockholder's equity: Common stock 49,543 457,368 10,238 (467,606 ) 49,543 Other stockholder's equity 1,360,059 618,985 726,830 (1,345,815 ) 1,360,059 Total Cinemark USA, Inc. stockholder's equity 1,409,602 1,076,353 737,068 (1,813,421 ) 1,409,602 Noncontrolling interests — — 11,893 — 11,893 Total equity 1,409,602 1,076,353 748,961 (1,813,421 ) 1,421,495 Total liabilities and equity $ 4,077,960 $ 1,340,220 $ 1,236,578 $ (2,169,418 ) $ 4,485,340 CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION DECEMBER 31, 2018 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Assets Current assets Cash and cash equivalents $ 197,965 $ 10,886 $ 217,365 $ — $ 426,216 Other current assets 60,829 19,997 67,149 (15,178 ) 132,797 Accounts receivable from parent or subsidiaries — 284,893 — (265,363 ) 19,530 Total current assets 258,794 315,776 284,514 (280,541 ) 578,543 Theatre properties and equipment - net 664,759 789,536 378,838 - 1,833,133 Investment in subsidiaries 1,806,255 57,845 - (1,864,100 ) - Other assets 1,500,366 155,011 546,834 (112,536 ) 2,089,675 Total assets $ 4,230,174 $ 1,318,168 $ 1,210,186 $ (2,257,177 ) $ 4,501,351 Liabilities and equity Current liabilities Current portion of long-term debt $ 6,595 $ — $ 1,389 $ — $ 7,984 Current portion of capital lease obligations 11,918 9,406 5,741 — 27,065 Accounts payable and accrued expenses 297,302 58,544 96,780 (13,622 ) 439,004 Accounts payable to parent or subsidiaries 40,421 — 224,942 (265,363 ) - Total current liabilities 356,236 67,950 328,852 (278,985 ) 474,053 Long-term liabilities Long-term debt, less current portion 1,872,627 — 7,955 (107,955 ) 1,772,627 Capital lease obligations, less current portion 123,329 59,539 49,599 — 232,467 Other long-term liabilities and deferrals 413,177 60,137 77,844 (6,137 ) 545,021 Total long-term liabilities 2,409,133 119,676 135,398 (114,092 ) 2,550,115 Commitments and contingencies Equity Cinemark USA, Inc.'s stockholder's equity: Common stock 49,543 457,368 10,238 (467,606 ) 49,543 Other stockholder's equity 1,415,262 673,174 723,319 (1,396,494 ) 1,415,261 Total Cinemark USA, Inc. stockholder's equity 1,464,805 1,130,542 733,557 (1,864,100 ) 1,464,804 Noncontrolling interests — — 12,379 — 12,379 Total equity 1,464,805 1,130,542 745,936 (1,864,100 ) 1,477,183 Total liabilities and equity $ 4,230,174 $ 1,318,168 $ 1,210,186 $ (2,257,177 ) $ 4,501,351 |
Condensed Consolidating Statement of Income Information | CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION YEAR ENDED DECEMBER 31, 2016 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Revenues $ 1,014,713 $ 1,219,218 $ 737,981 $ (53,147 ) $ 2,918,765 Cost of operations Theatre operating expenses 804,041 828,905 540,310 (53,147 ) 2,120,109 General and administrative expenses 13,085 84,453 43,099 — 140,637 Depreciation and amortization 70,654 79,139 59,278 — 209,071 Impairment of long-lived assets 1,929 — 907 — 2,836 Loss on disposal of assets and other 5,613 13,759 1,087 20,459 Total cost of operations 895,322 1,006,256 644,681 (53,147 ) 2,493,112 Operating income 119,391 212,962 93,300 — 425,653 Other income (expense) Interest expense (96,442 ) (7,538 ) (5,642 ) 1,309 (108,313 ) Loss on debt amendments and refinancing (13,445 ) — — — (13,445 ) Distributions from NCM 1,414 — 13,242 — 14,656 Equity in income of affiliates 245,010 58,528 30,370 (301,946 ) 31,962 Other income 351 19 13,790 (1,309 ) 12,851 Total other income 136,888 51,009 51,760 (301,946 ) (62,289 ) Income before income taxes 256,279 263,971 145,060 (301,946 ) 363,364 Income taxes (498 ) 52,277 53,072 — 104,851 Net income 256,777 211,694 91,988 (301,946 ) 258,513 Less: Net income attributable to noncontrolling interests — — 1,736 — 1,736 Net income attributable to Cinemark USA, Inc. $ 256,777 $ 211,694 $ 90,252 $ (301,946 ) $ 256,777 CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION YEAR ENDED DECEMBER 31, 2017 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Revenues $ 1,013,960 $ 1,220,993 $ 807,350 $ (50,756 ) $ 2,991,547 Cost of operations Theatre operating expenses 795,976 834,135 591,223 (50,756 ) 2,170,578 General and administrative expenses 13,176 82,955 54,780 — 150,911 Depreciation and amortization 79,676 87,463 70,374 — 237,513 Impairment of long-lived assets 3,725 1,502 9,857 — 15,084 Loss on disposal of assets and other 16,895 3,372 2,545 — 22,812 Total cost of operations 909,448 1,009,427 728,779 (50,756 ) 2,596,898 Operating income 104,512 211,566 78,571 — 394,649 Other income (expense) Interest expense (94,229 ) (7,675 ) (5,447 ) 1,433 (105,918 ) Loss on debt amendments and refinancing (521 ) — — — (521 ) Distributions from NCM — — 16,407 — 16,407 Equity in income of affiliates 255,594 16,838 33,742 (270,189 ) 35,985 Other income 2,475 1,040 5,054 (1,433 ) 7,136 Total other income 163,319 10,203 49,756 (270,189 ) (46,911 ) Income before income taxes 267,831 221,769 128,327 (270,189 ) 347,738 Income taxes 2,188 69,770 8,298 — 80,256 Net income 265,643 151,999 120,029 (270,189 ) 267,482 Less: Net income attributable to noncontrolling interests — — 1,839 — 1,839 Net income attributable to Cinemark USA, Inc. $ 265,643 $ 151,999 $ 118,190 $ (270,189 ) $ 265,643 CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION YEAR ENDED DECEMBER 31, 2018 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Revenues $ 1,192,478 $ 1,362,043 $ 723,804 $ (56,590 ) $ 3,221,735 Cost of operations Theatre operating expenses 916,726 933,858 541,981 (56,590 ) 2,335,975 General and administrative expenses 11,497 100,407 50,736 — 162,640 Depreciation and amortization 89,429 99,627 72,106 — 261,162 Impairment of long-lived assets 4,118 13,612 14,642 — 32,372 Loss on disposal of assets and other 13,321 23,337 2,044 — 38,702 Total cost of operations 1,035,091 1,170,841 681,509 (56,590 ) 2,830,851 Operating income 157,387 191,202 42,295 - 390,884 Other income (expense) Interest expense (97,585 ) (6,520 ) (7,266 ) 1,377 (109,994 ) Loss on debt amendments and refinancing (1,484 ) — — — (1,484 ) Distributions from NCM — — 15,389 — 15,389 Interest expense - NCM (19,724 ) — — — (19,724 ) Equity in income of affiliates 183,463 (12,561 ) 33,167 (164,827 ) 39,242 Other income 4,287 (14 ) (3,964 ) (1,377 ) (1,068 ) Total other income 68,957 (19,095 ) 37,326 (164,827 ) (77,639 ) Income before income taxes 226,344 172,107 79,621 (164,827 ) 313,245 Income taxes 10,608 68,624 16,800 - 96,032 Net income 215,736 103,483 62,821 (164,827 ) 217,213 Less: Net income attributable to noncontrolling interests — — 1,478 — 1,478 Net income attributable to Cinemark USA, Inc. $ 215,736 $ 103,483 $ 61,343 $ (164,827 ) $ 215,735 |
Condensed Consolidating Statement of Comprehensive Income Information | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME INFORMATION YEAR ENDED DECEMBER 31, 2016 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Net income $ 256,777 $ 211,694 $ 91,988 $ (301,946 ) $ 258,513 Other comprehensive income, net of tax Unrealized gain due to fair value adjustments on interest rate swap agreements, net of settlements, net of taxes of $138 234 — — — 234 Other comprehensive income of equity method investments 89 — 89 (89 ) 89 Foreign currency translation adjustments 26,361 — 26,394 (26,361 ) 26,394 Total other comprehensive income, net of tax 26,684 — 26,483 (26,450 ) 26,717 Total comprehensive income, net of tax $ 283,461 $ 211,694 $ 118,471 $ (328,396 ) $ 285,230 Comprehensive income attributable to noncontrolling interests — — (1,769 ) — (1,769 ) Comprehensive income attributable to Cinemark USA, Inc. $ 283,461 $ 211,694 $ 116,702 $ (328,396 ) $ 283,461 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME INFORMATION YEAR ENDED DECEMBER 31, 2017 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Net income $ 265,643 $ 151,999 $ 120,029 $ (270,189 ) $ 267,482 Other comprehensive income (loss), net of tax Other comprehensive income of equity method investments 248 — 248 (248 ) 248 Foreign currency translation adjustments (4,966 ) — (4,966 ) 4,966 (4,966 ) Total other comprehensive loss, net of tax (4,718 ) — (4,718 ) 4,718 (4,718 ) Total comprehensive income, net of tax $ 260,925 $ 151,999 $ 115,311 $ (265,471 ) $ 262,764 Comprehensive income attributable to noncontrolling interests — — (1,839 ) — (1,839 ) Comprehensive income attributable to Cinemark USA, Inc. $ 260,925 $ 151,999 $ 113,472 $ (265,471 ) $ 260,925 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME INFORMATION YEAR ENDED DECEMBER 31, 2018 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Net income $ 215,736 $ 103,483 $ 62,821 $ (164,827 ) $ 217,213 Other comprehensive loss, net of tax Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes of $1,243, net of settlements (3,851 ) — — — (3,851 ) Other comprehensive loss of equity method investments (139 ) — (139 ) 139 (139 ) Foreign currency translation adjustments (62,253 ) — (62,253 ) 62,253 (62,253 ) Total other comprehensive loss, net of tax (66,243 ) — (62,392 ) 62,392 (66,243 ) Total comprehensive income, net of tax $ 149,493 $ 103,483 $ 429 $ (102,435 ) $ 150,970 Comprehensive income attributable to noncontrolling interests — — (1,478 ) — (1,478 ) Comprehensive income attributable to Cinemark USA, Inc. $ 149,493 $ 103,483 $ (1,049 ) $ (102,435 ) $ 149,492 |
Condensed Consolidating Statement of Cash Flows Information | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION YEAR ENDED DECEMBER 31, 2016 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Operating activities Net income $ 256,777 $ 211,694 $ 91,988 $ (301,946 ) $ 258,513 Adjustments to reconcile net income to cash provided by operating activities (178,147 ) 55,128 53,381 301,946 232,308 Changes in assets and liabilities 154,085 (164,005 ) (18,642 ) — (28,562 ) Net cash provided by operating activities 232,715 102,817 126,727 — 462,259 Investing activities Additions to theatre properties and equipment (108,439 ) (130,843 ) (87,626 ) — (326,908 ) Acquisition of theatres in the U.S. (15,300 ) — — — (15,300 ) Acquisition of screen advertising business — — (1,450 ) — (1,450 ) Proceeds from sale of theatre properties and equipment and other 2,912 374 284 — 3,570 Proceeds from sale of marketable securities 13,451 — — — 13,451 Intercompany note issuances (4,455 ) — — 4,455 Dividends received from subsidiaries 26,033 229,649 — (255,682 ) — Investment in joint ventures and other (1,000 ) — (132 ) — (1,132 ) Net cash provided by (used for) investing activities (86,798 ) 99,180 (88,924 ) (251,227 ) (327,769 ) Financing activities Dividends paid to parent (124,900 ) — (255,682 ) 255,682 (124,900 ) Proceeds from issuance of Senior Notes, net of discount 222,750 — — — 222,750 Retirement of Senior Subordinated Notes (200,000 ) — — — (200,000 ) Repayments of long-term debt (15,201 ) — (1,404 ) — (16,605 ) Payments of debt issue costs (7,217 ) — — — (7,217 ) Fees paid related to debt amendments (11,076 ) — — — (11,076 ) Intercompany loan proceeds — — 4,455 (4,455 ) - Payments on capital leases (6,645 ) (10,005 ) (2,693 ) — (19,343 ) Other 1,863 (6,834 ) (1,759 ) — (6,730 ) Net cash used for financing activities (140,426 ) (16,839 ) (257,083 ) 251,227 (163,121 ) Effect of exchange rate changes on cash and cash equivalents — — 1,266 — 1,266 Increase (decrease) in cash and cash equivalents 5,491 185,158 (218,014 ) — (27,365 ) Cash and cash equivalents: Beginning of year 141,364 95,865 351,274 — 588,503 End of year $ 146,855 $ 281,023 $ 133,260 $ — $ 561,138 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION YEAR ENDED DECEMBER 31, 2017 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Operating activities Net income $ 265,643 $ 151,999 $ 120,029 $ (270,189 ) $ 267,482 Adjustments to reconcile net income to cash provided by operating activities (122,559 ) 71,023 33,515 270,189 252,168 Changes in assets and liabilities 18,223 (35,138 ) 25,649 — 8,734 Net cash provided by operating activities 161,307 187,884 179,193 — 528,384 Investing activities Additions to theatre properties and equipment (146,385 ) (172,874 ) (61,603 ) — (380,862 ) Acquisition of theatres in the U.S. and international markets, net of cash acquired (12,500 ) - (28,497 ) — (40,997 ) Proceeds from sale of theatre properties and equipment and other 2,149 12,271 678 — 15,098 Dividends received from subsidiaries 127,600 1,873 — (129,473 ) — Investment in joint ventures and other — (104 ) (3,611 ) — (3,715 ) Net cash used for investing activities (29,136 ) (158,834 ) (93,033 ) (129,473 ) (410,476 ) Financing Activities Dividends paid to parent (134,500 ) (127,000 ) (2,473 ) 129,473 (134,500 ) Repayments of long-term debt (4,282 ) — (1,389 ) — (5,671 ) Payments on capital leases (7,952 ) (9,707 ) (4,066 ) — (21,725 ) Fees paid related to debt amendments (521 ) — — — (521 ) Proceeds from financing lease — 10,200 — — 10,200 Other (1,181 ) (2,943 ) (1,088 ) — (5,212 ) Net cash provided by financing activities (148,436 ) (129,450 ) (9,016 ) 129,473 (157,429 ) Effect of exchange rate changes on cash and cash equivalents — — 798 — 798 Increase (decrease) in cash and cash equivalents (16,265 ) (100,400 ) 77,942 — (38,723 ) Cash and cash equivalents: Beginning of year 146,855 281,023 133,260 — 561,138 End of year $ 130,590 $ 180,623 $ 211,202 $ — $ 522,415 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION YEAR ENDED DECEMBER 31, 2018 Parent Subsidiary Subsidiary Company Guarantors Non-Guarantors Eliminations Consolidated (In thousands) Operating activities Net income $ 215,736 $ 103,483 $ 62,821 $ (164,827 ) $ 217,213 Adjustments to reconcile net income to cash provided by operating activities (36,894 ) 162,811 55,915 164,827 346,659 Changes in assets and liabilities 229,325 (233,263 ) (3,635 ) — (7,573 ) Net cash provided by operating activities 408,167 33,031 115,101 — 556,299 Investing activities Additions to theatre properties and equipment (91,244 ) (173,042 ) (81,787 ) — (346,073 ) Acquisition of theatres in international markets, net of cash acquired — — (11,289 ) — (11,289 ) Proceeds from sale of theatre properties and equipment and other 1,244 2,025 651 — 3,920 Proceeds from intercompany note repayments 1,867 — — (1,867 ) — Acquisition of NCM common units (78,393 ) — — — (78,393 ) Investment in joint ventures and other — (19,896 ) 361 — (19,535 ) Net cash used for investing activities (166,526 ) (190,913 ) (92,064 ) (1,867 ) (451,370 ) Financing activities Dividends paid to parent (148,750 ) — — — (148,750 ) Repayments of long-term debt (7,984 ) — — — (7,984 ) Payment of debt issue costs (5,218 ) — — — (5,218 ) Payments on capital leases (11,610 ) (8,950 ) (4,793 ) — (25,353 ) Payments on intercompany loans — - (1,867 ) 1,867 — Other (704 ) (2,905 ) (992 ) — (4,601 ) Net cash used for financing activities (174,266 ) (11,855 ) (7,652 ) 1,867 (191,906 ) Effect of exchange rate changes on cash and cash equivalents — — (9,222 ) — (9,222 ) Increase (decrease) in cash and cash equivalents 67,375 (169,737 ) 6,163 — (96,199 ) Cash and cash equivalents: Beginning of year 130,590 180,623 211,202 — 522,415 End of year $ 197,965 $ 10,886 $ 217,365 $ — $ 426,216 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)SegmentUnit | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($)Segment | |
Summary Of Significant Accounting Policies [Line Items] | |||
Approximate remaining lease period for owned properties | 20 years | ||
Multiple of cash flows used to estimate fair value of long-lived asset | 6.5 | 6.5 | 6.5 |
Number of domestic reporting units for which quantitative goodwill assessment performed | Unit | 3 | ||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Requirements to be classified as capital lease, minimum amount of present value of future minimum lease payments against estimated fair value, percentage | 90.00% | ||
Requirements to be classified as capital lease, minimum length of lease term against estimated useful life, percentage | 75.00% | ||
General liability claim per occurrence, cap | $ 250,000 | 250,000 | 100,000 |
Aggregate annual cap per policy year | 4,750,000 | 3,900,000 | 3,350,000 |
Annual cap for self-insured workers compensation plan | 5,000,000 | 5,000,000 | |
Medical claim per occurrence, cap | 250,000 | 250,000 | $ 150,000 |
Insurance Reserves | $ 10,827,000 | $ 8,252,000 | |
Minimum Percentage for Tax position measure as largest amount of benefit | 50.00% | ||
Reportable operating segments | Segment | 2 | 2 | 2 |
Trade Names | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 |
U.S. Operating Segment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of reporting units | Segment | 20 | ||
Multiplication Value to Cash flows for the determination of fair value of Reporting units | 8 | 8 | |
International Operating Segment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of reporting units | Segment | 7 | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Equity method investment, ownership percentage | 20.00% | ||
Amortization period of deferred charges and other assets | 1 year | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Cost method investment, ownership Percentage | 20.00% | ||
Amortization period of deferred charges and other assets | 17 years | ||
Pre-funding claims and covers claims per occurrence | $ 250,000 |
Estimated Useful Lives of Asset
Estimated Useful Lives of Assets (Detail) | 12 Months Ended | |
Dec. 31, 2018 | ||
Buildings On Owned Land | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of assets | 40 years | |
Buildings On Leased Land | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of assets | Lesser of lease term or useful life | |
Land and Buildings Under Capital and Finance Leases | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of assets | Lesser of lease term or useful life | [1] |
Theatre furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of assets | 3 years | |
Theatre furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of assets | 15 years | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of assets | Lesser of lease term or useful life | |
[1] | Amortization of capital lease assets is included in depreciation and amortization expense on the consolidated statements of income. Accumulated amortization of capital and finance lease assets as of December 31, 2017 and 2018 was $200,683 and $177,733, respectively. |
Estimated Useful Lives of Ass_2
Estimated Useful Lives of Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | $ 1,571,017 | $ 1,500,535 |
Property Under Capital and Finance Lease | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | $ 177,733 | $ 200,683 |
Intangible Assets and Amortizat
Intangible Assets and Amortization Method (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | |
Goodwill | Indefinite-lived |
Tradename | Indefinite-lived and definite-lived. Definite-lived tradename assets have a remaining useful life of approximately two to eight years. |
Tradename | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Tradename | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Vendor Contracts | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Finite-Lived Intangible Assets, Amortization Method | Straight-line method over the terms of the underlying contracts. The remaining term of the underlying contract is two years. |
Favorable/unfavorable leases | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | Based on the pattern in which the economic benefits are realized over the terms of the lease agreements. The remaining terms of the lease agreements range from approximately one to eighteen years. See Note 2 for discussion of the expected impact of new lease accounting pronouncements. |
Favorable/unfavorable leases | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Favorable/unfavorable leases | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 18 years |
Other Intangible Assets | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | Straight-line method over the terms of the underlying agreement or the expected useful life of the intangible asset. The remaining useful lives of these intangible assets range from two to eight years. |
Other Intangible Assets | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Other Intangible Assets | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Corporate income tax rate percent | 21.00% | 35.00% | ||
ASU 2016-02 | Subsequent Event | Minimum | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Operating leases, future minimum payments | $ 1,400,000 | |||
ASU 2016-02 | Subsequent Event | Maximum | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Operating leases, future minimum payments | $ 1,700,000 | |||
ASU 2016-15 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Reclassification of cash payments recorded in loss on debt amendments and refinancing from operating activities to financing activities | $ 521 | $ 11,076 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue Recognition [Line Items] | ||
Cumulative effect of accounting change adjustment net of taxes, in retained earnings | $ 40,526,000 | |
Receivables related to contracts with customers | $ 48,117,000 | |
Assets related to costs to obtain or fulfill contract with customers | 0 | |
NCM | ||
Revenue Recognition [Line Items] | ||
Remaining performance obligations | $ 174,000,000 | |
Deferred revenue amortization year and month | 2037-02 | |
Recognized incremental screen advertising revenue and offsetting interest expense | $ 19,724,000 | |
NCM | Minimum | ||
Revenue Recognition [Line Items] | ||
Percentage of incremental borrowing rates | 5.50% | |
NCM | Maximum | ||
Revenue Recognition [Line Items] | ||
Percentage of incremental borrowing rates | 8.00% |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Impact Upon Adoption of ASC Topic 606 on Statements of Income and Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue Recognition [Line Items] | |||
Revenues | $ 3,221,735 | $ 2,991,547 | $ 2,918,765 |
Utilities and other expense | 448,070 | 355,041 | 355,926 |
Statement of cash flows: | |||
Amortization of deferred revenues, deferred lease incentives and other | (21,706) | (16,211) | (16,731) |
Changes in other assets and liabilities - Other long-term liabilities | 11,967 | 8,294 | (5,076) |
NCM | |||
Revenue Recognition [Line Items] | |||
Interest expense - NCM | 19,724 | ||
Adoption of ASC Topic 606 | Without Adoption of ASC 606 | |||
Revenue Recognition [Line Items] | |||
Utilities and other expense | 354,740 | ||
Statement of cash flows: | |||
Amortization of deferred revenues, deferred lease incentives and other | (17,602) | ||
Changes in other assets and liabilities - Other long-term liabilities | 4,375 | ||
Adoption of ASC Topic 606 | Impact of Adoption of ASC 606 | |||
Revenue Recognition [Line Items] | |||
Utilities and other expense | 93,330 | ||
Statement of cash flows: | |||
Amortization of deferred revenues, deferred lease incentives and other | (4,104) | ||
Changes in other assets and liabilities - Other long-term liabilities | 7,592 | ||
Adoption of ASC Topic 606 | Impact of Adoption of ASC 606 | NCM | |||
Revenue Recognition [Line Items] | |||
Interest expense - NCM | 19,724 | ||
Admissions Revenues | |||
Revenue Recognition [Line Items] | |||
Revenues | 1,834,173 | 1,794,982 | 1,789,137 |
Admissions Revenues | Adoption of ASC Topic 606 | Without Adoption of ASC 606 | |||
Revenue Recognition [Line Items] | |||
Revenues | 1,839,723 | ||
Admissions Revenues | Adoption of ASC Topic 606 | Impact of Adoption of ASC 606 | |||
Revenue Recognition [Line Items] | |||
Revenues | (5,550) | ||
Concession Revenues | |||
Revenue Recognition [Line Items] | |||
Revenues | 1,108,793 | $ 1,038,788 | $ 990,103 |
Concession Revenues | Adoption of ASC Topic 606 | Without Adoption of ASC 606 | |||
Revenue Recognition [Line Items] | |||
Revenues | 1,110,703 | ||
Concession Revenues | Adoption of ASC Topic 606 | Impact of Adoption of ASC 606 | |||
Revenue Recognition [Line Items] | |||
Revenues | (1,910) | ||
Other | |||
Revenue Recognition [Line Items] | |||
Revenues | 278,769 | ||
Other | Adoption of ASC Topic 606 | Without Adoption of ASC 606 | |||
Revenue Recognition [Line Items] | |||
Revenues | 161,743 | ||
Other | Adoption of ASC Topic 606 | Impact of Adoption of ASC 606 | |||
Revenue Recognition [Line Items] | |||
Revenues | $ 117,026 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Impact of Adoption of ASC 606 on Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue Recognition [Line Items] | ||||
Long-term deferred tax liability | $ 155,626 | $ 121,787 | ||
Other long-term liabilities | 49,431 | 41,247 | ||
Retained earnings | 480,580 | 373,069 | ||
Adoption of ASC Topic 606 | Without Adoption of ASC 606 | ||||
Revenue Recognition [Line Items] | ||||
Long-term deferred tax liability | 142,547 | |||
Other long-term liabilities | 41,839 | |||
Retained earnings | 440,054 | |||
Adoption of ASC Topic 606 | Impact of Adoption of ASC 606 | ||||
Revenue Recognition [Line Items] | ||||
Long-term deferred tax liability | 13,079 | |||
Other long-term liabilities | 7,592 | |||
Retained earnings | 40,526 | |||
NCM | ||||
Revenue Recognition [Line Items] | ||||
Deferred revenue - NCM | 287,349 | [1] | $ 351,706 | |
NCM | Adoption of ASC Topic 606 | Without Adoption of ASC 606 | ||||
Revenue Recognition [Line Items] | ||||
Deferred revenue - NCM | [1] | 345,058 | ||
NCM | Adoption of ASC Topic 606 | Impact of Adoption of ASC 606 | ||||
Revenue Recognition [Line Items] | ||||
Deferred revenue - NCM | [1] | $ (57,709) | ||
[1] | Includes the cumulative effect of accounting change of $53,605 recorded on January 1, 2018 and the full year impact of the change in amortization method of $4,104 during the year ended December 31, 2018. |
Revenue Recognition - Summary_3
Revenue Recognition - Summary of Impact of Adoption of ASC 606 on Balance Sheet (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue Recognition [Line Items] | ||
Cumulative effect of accounting change adjustment net of taxes, in retained earnings | $ 40,526 | |
Adoption of ASC Topic 606 | NCM | ||
Revenue Recognition [Line Items] | ||
Cumulative effect of accounting change adjustment net of taxes, in retained earnings | $ 53,605 | |
Impact of change in amortization method | $ 4,104 |
Revenue Recognition - Summary_4
Revenue Recognition - Summary of Revenues Disaggregated Based on Major Type of Good or Service and by Reportable Operating Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 3,221,735 | $ 2,991,547 | $ 2,918,765 | |
U.S. Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | [1] | 2,538,957 | ||
International Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 682,778 | |||
Admissions Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,834,173 | 1,794,982 | 1,789,137 | |
Admissions Revenues | U.S. Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | [1] | 1,461,151 | ||
Admissions Revenues | International Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 373,022 | |||
Concession Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,108,793 | $ 1,038,788 | $ 990,103 | |
Concession Revenues | U.S. Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | [1] | 892,391 | ||
Concession Revenues | International Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 216,402 | |||
Screen Advertising and Promotional Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 139,860 | |||
Screen Advertising and Promotional Revenues | U.S. Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | [1] | 78,591 | ||
Screen Advertising and Promotional Revenues | International Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 61,269 | |||
Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 138,909 | |||
Other Revenue | U.S. Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | [1] | 106,824 | ||
Other Revenue | International Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 32,085 | |||
[1] | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. |
Revenue Recognition - Summary_5
Revenue Recognition - Summary of Revenues Disaggregated Based on Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 3,221,735 | $ 2,991,547 | $ 2,918,765 | |
U.S. Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | [1] | 2,538,957 | ||
International Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 682,778 | |||
Goods and Services Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,061,660 | |||
Goods and Services Transferred at a Point in Time | U.S. Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | [1] | 2,453,313 | ||
Goods and Services Transferred at a Point in Time | International Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 608,347 | |||
Goods and Services Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 160,075 | |||
Goods and Services Transferred Over Time | U.S. Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | [1] | 85,644 | ||
Goods and Services Transferred Over Time | International Operating Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 74,431 | |||
[1] | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. |
Revenue Recognition - Changes i
Revenue Recognition - Changes in Deferred Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Change in Contract with Customer Liability [Line Items] | ||||
Balance at January 1, 2018 | $ 438,204 | |||
Amounts recognized as accounts receivable | 6,921 | |||
Cash received from customers in advance | 156,237 | |||
Common units received from NCM (see Note 6) | 5,012 | |||
Revenue recognized during period | (156,940) | |||
Foreign currency translation adjustments | (2,405) | |||
Balance at December 31, 2018 | 393,424 | $ 438,204 | ||
Adoption of ASC Topic 606 | ||||
Change in Contract with Customer Liability [Line Items] | ||||
Impact of adoption of ASC Topic 606 | (53,605) | |||
Deferred Revenue | ||||
Change in Contract with Customer Liability [Line Items] | ||||
Common units received from NCM (see Note 6) | (5,012) | (18,363) | $ (11,111) | |
Deferred Revenue | NCM | ||||
Change in Contract with Customer Liability [Line Items] | ||||
Balance at January 1, 2018 | 351,706 | |||
Common units received from NCM (see Note 6) | 5,012 | |||
Revenue recognized during period | (15,764) | |||
Balance at December 31, 2018 | 287,349 | 351,706 | ||
Deferred Revenue | NCM | Adoption of ASC Topic 606 | ||||
Change in Contract with Customer Liability [Line Items] | ||||
Impact of adoption of ASC Topic 606 | (53,605) | |||
Other Deferred Revenues | ||||
Change in Contract with Customer Liability [Line Items] | ||||
Balance at January 1, 2018 | [1] | 86,498 | ||
Amounts recognized as accounts receivable | [1] | 6,921 | ||
Cash received from customers in advance | [1] | 156,237 | ||
Revenue recognized during period | [1] | (141,176) | ||
Foreign currency translation adjustments | [1] | (2,405) | ||
Balance at December 31, 2018 | [1] | $ 106,075 | $ 86,498 | |
[1] | Includes liabilities associated with outstanding gift cards and SuperSavers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the consolidated balance sheet. |
Revenue Recognition - Aggregate
Revenue Recognition - Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 393,424 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 105,354 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 31,977 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 16,038 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 16,030 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 15,831 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Remaining performance obligations | $ 208,194 |
Deferred Revenue | NCM | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 287,349 |
Deferred Revenue | NCM | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 15,831 |
Deferred Revenue | NCM | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 15,831 |
Deferred Revenue | NCM | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 15,831 |
Deferred Revenue | NCM | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 15,831 |
Deferred Revenue | NCM | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 15,831 |
Deferred Revenue | NCM | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Remaining performance obligations | $ 208,194 |
Other Deferred Revenues | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 106,075 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 89,523 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 16,146 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 207 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligations | $ 199 |
Revenue Recognition - Aggrega_2
Revenue Recognition - Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized (Detail 1) $ in Thousands | Dec. 31, 2018USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 393,424 |
Deferred Revenue | NCM | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | 287,349 |
Other Deferred Revenues | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 106,075 |
Investment in National CineMe_3
Investment in National CineMedia LLC - Additional Information (Detail) | Jul. 05, 2018USD ($)$ / sharesshares | Feb. 13, 2007USD ($) | Dec. 31, 2018USD ($)$ / shares$ / Theatreshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 04, 2018 | Dec. 31, 2015USD ($) |
Schedule Of Equity Method Investments [Line Items] | |||||||
Access fees per patron | $ / Theatre | 0.07 | ||||||
Increase in percentage of payment per theatre patron | 8.00% | ||||||
Duration of percentage increase in theatre access fees per patron | 5 years | ||||||
Payment per digital screen | $ 800,000 | $ 1,368,000 | $ 1,303,000 | $ 1,241,000 | |||
Percentage of annual increase in payment per digital screen | 5.00% | ||||||
Minimum percentage of aggregate advertising revenue for payment of fees | 12.00% | ||||||
'Remaining term of exhibitor services agreement | 2037-02 | ||||||
Interest in common units of NCM owned by Company | 25.00% | ||||||
Number of common units of NCM owned by Company | shares | 39,518,644 | ||||||
Investment In NCM | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Estimated fair value of investment using NCMI's stock price | $ 256,081,000 | ||||||
NCMI stock price | $ / shares | $ 6.48 | ||||||
Investment in NCM | $ 275,592,000 | 200,550,000 | 189,995,000 | $ 183,755,000 | |||
NCM | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Number of common units of NCM acquired by Company | shares | 10,738,740 | ||||||
Value of common units in cash | $ 78,393,000 | ||||||
Common unit price per share | $ / shares | $ 7.30 | ||||||
Interest in common units of NCM owned by Company | 25.00% | 18.00% | |||||
Investment in NCM | 275,592,000 | 200,550,000 | |||||
Impairment of investments | 0 | ||||||
NCM | Theatre Properties and Equipment | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Payment for installation of certain equipment used for digital advertising | $ 74,000 | $ 102,000 | $ 49,000 |
Summary of Common Units Receive
Summary of Common Units Received Under Adjustment Agreement (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Equity Method Investments [Line Items] | |||
Fair Value of Common Units Received | $ 5,012 | $ 18,363 | $ 11,111 |
Annual Common Unit Adjustment | |||
Schedule Of Equity Method Investments [Line Items] | |||
Date Common Units Received | Mar. 29, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Number of Common Units Received | 908,042 | 1,487,218 | 753,598 |
Fair Value of Common Units Received | $ 5,012 | $ 18,363 | $ 11,111 |
Summary of Activity with NCM In
Summary of Activity with NCM Included in Company's Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | Jul. 05, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | ||
Schedule Of Equity Method Investments [Line Items] | |||||||
Receipt of common units due to annual common unit adjustment | $ 5,012 | ||||||
Equity in earnings | 39,242 | $ 35,985 | $ 31,962 | ||||
NCM | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Beginning Balance | 200,550 | ||||||
Purchase of additional common units | $ 78,393 | ||||||
Purchase of additional common units | 78,393 | ||||||
Ending Balance | 275,592 | 200,550 | |||||
Investment In NCM | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Beginning Balance | 200,550 | 189,995 | 183,755 | ||||
Receipt of common units due to annual common unit adjustment | 5,012 | 18,363 | 11,111 | ||||
Purchase of additional common units | 78,393 | ||||||
Receipt of excess cash distributions | (19,786) | (15,093) | (11,233) | ||||
Receipt under tax receivable agreement | (2,419) | (2,265) | (2,985) | ||||
Equity in earnings | 13,842 | 9,550 | 9,347 | ||||
Ending Balance | 275,592 | 200,550 | 189,995 | ||||
Deferred Revenue | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Beginning Balance | (351,706) | (343,928) | (342,134) | ||||
Impact of adoption of ASC Topic 606 | [1] | $ 53,605 | |||||
Receipt of common units due to annual common unit adjustment | (5,012) | (18,363) | (11,111) | ||||
Ending Balance | (287,349) | (351,706) | (343,928) | ||||
Deferred Revenue | NCM | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Receipt of common units due to annual common unit adjustment | 5,012 | ||||||
Amortization of deferred revenue | 15,764 | [1] | 10,585 | 9,317 | |||
Distributions from NCM | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Beginning Balance | (16,407) | (14,656) | |||||
Receipt of excess cash distributions | (13,231) | (14,158) | (11,483) | ||||
Receipt under tax receivable agreement | (2,158) | (2,249) | (3,173) | ||||
Ending Balance | (15,389) | (16,407) | (14,656) | ||||
Equity in Earnings | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Beginning Balance | (9,550) | (9,347) | |||||
Ending Balance | (13,842) | (9,550) | (9,347) | ||||
Equity in Earnings | NCM | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity in earnings | (13,842) | (9,550) | (9,347) | ||||
Other Revenue | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Beginning Balance | (21,859) | (20,365) | |||||
Revenues earned under ESA | [2] | (31,867) | [3] | (11,274) | (11,048) | ||
Ending Balance | (47,631) | (21,859) | (20,365) | ||||
Other Revenue | NCM | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Amortization of deferred revenue | (15,764) | [1] | (10,585) | (9,317) | |||
Interest Expense - NCM | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Revenues earned under ESA | [2],[3] | 19,724 | |||||
Ending Balance | [3] | 19,724 | |||||
Cash Received (Paid) | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Beginning Balance | 45,039 | 39,922 | |||||
Revenues earned under ESA | [2] | 12,143 | [3] | 11,274 | 11,048 | ||
Receipt of excess cash distributions | 33,017 | 29,251 | 22,716 | ||||
Receipt under tax receivable agreement | 4,577 | 4,514 | 6,158 | ||||
Ending Balance | $ 49,737 | $ 45,039 | $ 39,922 | ||||
[1] | As a result of adoption of ASC Topic 606, the Company determined that the deferred revenue associated with the ESA and CUA agreement should be amortized on a straight-line basis versus the units of revenue method followed prior to adoption. The Company recorded a reduction in the deferred revenue balance and a cumulative effect of a change in accounting principle in retained earnings. See Note 3 for further discussion of the impact of the adoption of ASC Topic 606. | ||||||
[2] | Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire. The amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire were approximately $10,523, $11,110 and $11,965 for the years ended December 31, 2016, 2017 and 2018, respectively. | ||||||
[3] | Reflects the impact of significant financing component related to amounts received in advance under the ESA and CUA agreement. See Note 3. |
Summary of Activity with NCM _2
Summary of Activity with NCM Included in Company's Consolidated Financial Statements (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |||
Company's beverage concessionaire advertising costs | $ 11,965 | $ 11,110 | $ 10,523 |
Summary Financial Information f
Summary Financial Information for National CineMedia (Detail) - NCM - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Schedule Of Equity Method Investments [Line Items] | |||
Revenues | $ 441,400 | $ 426,100 | $ 447,600 |
Operating income | 154,300 | 153,900 | 173,000 |
Net income | 98,400 | 101,900 | $ 109,300 |
Current assets | 172,700 | 174,400 | |
Noncurrent assets | 726,800 | 758,300 | |
Current liabilities | 115,200 | 123,300 | |
Noncurrent liabilities | 924,900 | 925,400 | |
Members' deficit | $ (140,600) | $ (116,000) |
Summary of Activity for Each of
Summary of Activity for Each of Company's Other Investments (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Investments, beginning balance | $ 120,045 | ||||||
Equity in income (loss) | 39,242 | $ 35,985 | $ 31,962 | ||||
Cash distributions received | [1] | (30,143) | (25,973) | (21,916) | |||
Investments, ending balance | 156,766 | 120,045 | |||||
AC JV, LLC | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Cash contributions | $ 268 | ||||||
Other Affiliates | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Investments, beginning balance | 120,045 | 98,317 | 94,973 | ||||
Cash contributions | 22,076 | 3,715 | 1,132 | ||||
Equity in income (loss) | 25,400 | 26,435 | 22,615 | ||||
Equity in comprehensive income (loss) | (139) | 248 | 89 | ||||
Sale of investment | [2] | (12,900) | |||||
Cash distributions received | (7,938) | (8,615) | (7,698) | ||||
Other | (2,678) | [3] | (55) | 106 | [3] | ||
Investments, ending balance | 156,766 | 120,045 | 98,317 | ||||
Other Affiliates | Digital Cinema Implementation Partners | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Investments, beginning balance | 106,215 | 87,819 | 71,579 | ||||
Cash contributions | 2,076 | 1,112 | 717 | ||||
Equity in income (loss) | 22,899 | 22,900 | 21,434 | ||||
Equity in comprehensive income (loss) | (139) | 248 | 89 | ||||
Sale of investment | [2] | 0 | |||||
Cash distributions received | (5,799) | (5,864) | (6,000) | ||||
Other | 0 | [3] | 0 | 0 | [3] | ||
Investments, ending balance | 125,252 | 106,215 | 87,819 | ||||
Other Affiliates | RealD | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Investments, beginning balance | 0 | 0 | 12,900 | ||||
Cash contributions | 0 | 0 | 0 | ||||
Equity in income (loss) | 0 | 0 | 0 | ||||
Equity in comprehensive income (loss) | 0 | 0 | 0 | ||||
Sale of investment | [2] | (12,900) | |||||
Cash distributions received | 0 | 0 | 0 | ||||
Other | 0 | [3] | 0 | 0 | [3] | ||
Investments, ending balance | 0 | 0 | 0 | ||||
Other Affiliates | AC JV, LLC | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Investments, beginning balance | 5,916 | 5,980 | 7,269 | ||||
Cash contributions | 0 | 0 | 0 | ||||
Equity in income (loss) | 1,270 | 2,336 | 311 | ||||
Equity in comprehensive income (loss) | 0 | 0 | 0 | ||||
Sale of investment | [2] | 0 | |||||
Cash distributions received | (1,920) | (2,400) | (1,600) | ||||
Other | 0 | [3] | 0 | 0 | [3] | ||
Investments, ending balance | 5,266 | 5,916 | 5,980 | ||||
Other Affiliates | Digital Cinema Distribution Coalition | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Investments, beginning balance | 3,598 | 2,750 | 2,562 | ||||
Cash contributions | 0 | 0 | 0 | ||||
Equity in income (loss) | 1,313 | 1,199 | 870 | ||||
Equity in comprehensive income (loss) | 0 | 0 | 0 | ||||
Sale of investment | [2] | 0 | |||||
Cash distributions received | (219) | (351) | (98) | ||||
Other | (2,437) | [3] | 0 | (584) | [3] | ||
Investments, ending balance | 2,255 | 3,598 | 2,750 | ||||
Other Affiliates | FE Concepts | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Investments, beginning balance | 104 | 0 | 0 | ||||
Cash contributions | 20,000 | 104 | 0 | ||||
Equity in income (loss) | (82) | 0 | 0 | ||||
Equity in comprehensive income (loss) | 0 | 0 | 0 | ||||
Sale of investment | [2] | 0 | |||||
Cash distributions received | 0 | 0 | 0 | ||||
Other | (104) | [3] | 0 | 0 | [3] | ||
Investments, ending balance | 19,918 | 104 | 0 | ||||
Other Affiliates | Other Investment | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Investments, beginning balance | 4,212 | 1,768 | 663 | ||||
Cash contributions | 0 | 2,499 | 415 | ||||
Equity in income (loss) | 0 | 0 | 0 | ||||
Equity in comprehensive income (loss) | 0 | 0 | 0 | ||||
Sale of investment | [2] | 0 | |||||
Cash distributions received | 0 | 0 | 0 | ||||
Other | (137) | [3] | (55) | 690 | [3] | ||
Investments, ending balance | $ 4,075 | $ 4,212 | $ 1,768 | ||||
[1] | Includes distributions received from equity investees that were recorded as a reduction of the respective investment balances. | ||||||
[2] | See further discussion of the sale of the investment held by the Company under RealD, Inc. below. | ||||||
[3] | Other activity for DCDC for the years ended December 31, 2016 and 2018 consisted of returns of capital originally contributed by the Company. |
Other Investments - Additional
Other Investments - Additional Information (Detail) | Mar. 22, 2016USD ($)$ / shares | Dec. 31, 2013USD ($) | Mar. 31, 2011$ / shares | Dec. 31, 2018USD ($)RenewalOptionProjectionSystemshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2011shares | Apr. 30, 2018USD ($) |
Schedule Of Equity Method Investments [Line Items] | |||||||||
Number of options to purchase common stock | shares | 1,222,780 | ||||||||
Exercise price of options, shares | $ / shares | $ 0.00667 | ||||||||
Proceeds from sale of marketable securities | $ 13,451,000 | ||||||||
Number of shares owned in RealD | shares | 1,222,780 | ||||||||
Other Affiliates | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Cash contributions | $ 22,076,000 | $ 3,715,000 | 1,132,000 | ||||||
Digital Cinema Implementation Partners | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Percentage of voting interest | 33.00% | ||||||||
Economic interest in Digital Cinema Implementation Partners | 24.30% | ||||||||
Number of equipment being leased under master equipment lease agreement | ProjectionSystem | 3,837 | ||||||||
Digital Cinema Implementation Partners | Other Affiliates | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Digital projection systems leased under operating lease, initial term | 12 years | ||||||||
Number of one-year fair value renewal options | RenewalOption | 10 | ||||||||
Minimum annual rent per digital projection system | $ 1,000 | ||||||||
Cash contributions | 2,076,000 | 1,112,000 | 717,000 | ||||||
RealD | Other Affiliates | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Purchase price per share | $ / shares | $ 11 | ||||||||
Proceeds from sale of marketable securities | $ 13,451,000 | ||||||||
Gain on investment | 3,742,000 | ||||||||
Unrealized holding gain previously recorded in AOCI | 3,191,000 | ||||||||
Cash contributions | 0 | 0 | 0 | ||||||
AC JV, LLC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Cash contributions | $ 268,000 | ||||||||
Ownership of class A units | 32.00% | ||||||||
Promissory note term | 6 years | ||||||||
Original principal value of promissory note with NCM | $ 8,333,000 | ||||||||
Annual interest rate on promissory note | 5.00% | 5.00% | |||||||
Remaining outstanding balance of note payable | 1,389,000 | ||||||||
AC JV, LLC | Film rentals and advertising | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Event fees | 12,481,000 | 13,950,000 | 10,871,000 | ||||||
AC JV, LLC | Other Affiliates | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Cash contributions | $ 0 | 0 | 0 | ||||||
Digital Cinema Distribution Coalition | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Percentage of voting interest | 14.60% | ||||||||
Payments for content delivery services | $ 927,000 | 848,000 | 939,000 | ||||||
Digital Cinema Distribution Coalition | Other Affiliates | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Cash contributions | $ 0 | $ 0 | $ 0 | ||||||
CNMK Texas Properties, LLC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Percentage of voting interest | 50.00% | ||||||||
Investment in joint venture | $ 20,000,000 | ||||||||
CNMK Texas Properties, LLC | AWSR Investments, LLC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Percentage of voting interest | 50.00% | ||||||||
Investment in joint venture | $ 20,000,000 |
Summary Financial Information_2
Summary Financial Information for DCIP (Detail) - Other Affiliates - Digital Cinema Implementation Partners - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Equity Method Investments [Line Items] | |||
Revenues | $ 172,534 | $ 177,382 | $ 178,836 |
Operating income | 102,236 | 106,687 | 107,919 |
Net income | 94,757 | 93,103 | $ 89,152 |
Current assets | 57,907 | 56,296 | |
Noncurrent assets | 684,545 | 772,438 | |
Current liabilities | 67,408 | 59,153 | |
Noncurrent liabilities | 125,596 | 296,889 | |
Members' equity | $ 549,448 | $ 472,692 |
Transactions with DCIP (Detail)
Transactions with DCIP (Detail) - Digital Cinema Implementation Partners - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Equity Method Investments [Line Items] | |||
Equipment lease payments | $ 4,862 | $ 5,743 | $ 5,217 |
Warranty reimbursements from DCIP | (10,800) | (8,511) | (6,091) |
Management services fees | $ 730 | $ 823 | $ 825 |
Summary of Goodwill (Detail)
Summary of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | ||||
Goodwill [Line Items] | |||||
Beginning Balance | [1] | $ 1,284,079 | $ 1,262,963 | ||
Acquisitions of theatres | 7,204 | [2] | 23,089 | [3] | |
Foreign currency translation adjustments | (14,959) | (1,973) | |||
Ending Balance | [1] | 1,276,324 | 1,284,079 | ||
U.S. Operating Segment | |||||
Goodwill [Line Items] | |||||
Beginning Balance | [1] | 1,174,041 | 1,164,163 | ||
Acquisitions of theatres | [3] | 9,878 | |||
Ending Balance | [1] | 1,174,041 | 1,174,041 | ||
International Operating Segment | |||||
Goodwill [Line Items] | |||||
Beginning Balance | [1] | 110,038 | 98,800 | ||
Acquisitions of theatres | 7,204 | [2] | 13,211 | [3] | |
Foreign currency translation adjustments | (14,959) | (1,973) | |||
Ending Balance | [1] | $ 102,283 | $ 110,038 | ||
[1] | Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. | ||||
[2] | Amount represents preliminary purchase price allocation for theatres acquired in Brazil. | ||||
[3] | Acquisition of theatres in the U.S. and international markets. |
Summary of Goodwill (Parentheti
Summary of Goodwill (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
U.S. Operating Segment | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 214,031 |
International Operating Segment | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 27,622 |
Intangible Assets - Net (Detail
Intangible Assets - Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | ||||
Intangible Assets Net Excluding Goodwill [Abstract] | |||||
Intangible assets with finite lives, Beginning balance | $ 105,895 | $ 99,796 | |||
Other, Gross carrying amount | [1] | (1,842) | (5,485) | ||
Intangible assets with finite lives, Ending balance | 105,256 | 105,895 | |||
Intangible assets with finite lives, Accumulated amortization, Beginning balance | (68,869) | (64,606) | |||
Accumulated amortization additions | 0 | [2] | 0 | [3] | |
Accumulated amortization | (5,734) | (5,563) | |||
Other Accumulated Amortization of Intangible Assets | [1] | 0 | 1,300 | ||
Intangible assets with finite lives, Accumulated amortization, Ending balance | (74,603) | (68,869) | |||
Net intangible assets with finite lives, Beginning balance | 37,026 | 35,190 | |||
Intangible assets with finite lives, additions | 1,203 | [2] | 11,584 | [3] | |
Amortization, intangible assets | (5,734) | (5,563) | |||
Other, Finite lived intangible assets | [1] | (1,842) | (4,185) | ||
Net intangible assets with finite lives, Ending balance | 30,653 | [4] | 37,026 | ||
Indefinite-lived Intangible Assets, Tradename, Beginning Balance | 299,735 | 299,709 | |||
Indefinite-lived Intangible Assets, Tradename and other, Beginning Balance | 299,735 | ||||
Indefinite lived intangible assets, Tradename, additions | [3] | 0 | |||
Indefinite lived intangible assets, Tradename and other, additions | [2] | 853 | |||
Other, Tradename and other | [1] | (331) | 26 | ||
Indefinite-lived Intangible Assets, Tradename, Ending Balance | 299,735 | ||||
Indefinite-lived Intangible Assets, Tradename and other, Ending Balance | 300,257 | 299,735 | |||
Total intangible assets - net, Beginning balance | 336,761 | 334,899 | |||
Other, Total intangible assets - net | [1] | (2,173) | (4,159) | ||
Total intangible assets - net, Ending balance | $ 330,910 | $ 336,761 | |||
[1] | Amounts represent foreign currency translation adjustments and the write-off of certain lease intangibles for theatre closures and lease amendments. | ||||
[2] | Amount for intangible assets with finite lives represents preliminary purchase price allocation for theatres acquired in Brazil | ||||
[3] | Activity for 2017 represent fair values allocated to intangible assets acquired as part of acquisitions of theatres in the U.S. and international markets. | ||||
[4] | Represents amounts before the adoption of ASC Topic 842 – Leases. See Note 2 for discussion of the expected impact of adoption. |
Estimated Aggregate Future Amor
Estimated Aggregate Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Finite Lived Intangible Assets Net [Abstract] | |||||
For the year ended December 31, 2019 | [1] | $ 4,785 | |||
For the year ended December 31, 2020 | [1] | 5,053 | |||
For the year ended December 31, 2021 | [1] | 2,904 | |||
For the year ended December 31, 2022 | [1] | 2,812 | |||
For the year ended December 31, 2023 | [1] | 3,161 | |||
Thereafter | [1] | 11,938 | |||
Total | $ 30,653 | [1] | $ 37,026 | $ 35,190 | |
[1] | Represents amounts before the adoption of ASC Topic 842 – Leases. See Note 2 for discussion of the expected impact of adoption. |
Long-Lived Asset Impairment Cha
Long-Lived Asset Impairment Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment of long-lived assets | $ 32,372 | $ 15,084 | $ 2,836 |
U.S. Operating Segment | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Theatre properties | 18,597 | 5,227 | 1,929 |
International Operating Segment | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Theatre properties | $ 13,775 | $ 9,857 | $ 907 |
Impairment of Long-Lived Asse_3
Impairment of Long-Lived Assets - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | |
Estimated aggregate fair value of long-lived assets impaired during current period | $ 16,295 |
Deferred Changes and Other Asse
Deferred Changes and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Long-term prepaid rents | [1] | $ 15,943 | $ 7,762 |
Construction and other deposits | 8,183 | 12,167 | |
Equipment to be placed in service | 10,466 | 13,868 | |
Other | 6,463 | 5,970 | |
Total | $ 41,055 | $ 39,767 | |
[1] | See Note 2 for discussion of the expected impact of the adoption of new lease accounting pronouncements. |
Long Term Debt (Detail)
Long Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 29, 2018 | [2] | Dec. 31, 2017 | Nov. 28, 2017 | [2] | Jun. 16, 2017 | [2] | Dec. 15, 2016 | [2] | Jun. 13, 2016 | [2] | |
Debt Instrument [Line Items] | |||||||||||||
Cinemark USA, Inc. term loan | $ 652,922 | $ 659,517 | |||||||||||
Other | [1] | 1,389 | 2,778 | ||||||||||
Total | 1,809,311 | 1,817,295 | |||||||||||
Less current portion | 7,984 | 7,099 | |||||||||||
Less debt issuance costs, net of accumulated amortization of $25,549 and $30,289, respectively | 28,700 | $ 4,962 | 29,815 | $ 330 | $ 521 | $ 2,446 | $ 783 | ||||||
Long-term debt, less current portion | 1,772,627 | 1,780,381 | |||||||||||
5.125% senior notes due 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes | 400,000 | 400,000 | |||||||||||
4.875 % Senior Notes Due May 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes | $ 755,000 | $ 755,000 | |||||||||||
[1] | Represents debt owed to NCM in relation to the joint venture AC JV, LLC. See Note 5. | ||||||||||||
[2] | Reflected as a reduction of long term debt on the consolidated balance sheet. |
Long Term Debt (Parenthetical)
Long Term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Debt issue costs, accumulated amortization | $ 30,289 | $ 25,549 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) | Mar. 30, 2018 | Mar. 29, 2018USD ($) | Nov. 28, 2017USD ($) | Jun. 16, 2017USD ($) | Dec. 15, 2016USD ($) | Jun. 13, 2016USD ($) | Mar. 21, 2016USD ($) | May 24, 2013USD ($) | Dec. 18, 2012USD ($) | Jun. 03, 2011USD ($) | Dec. 31, 2018USD ($)Agreement | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2012 | ||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Amount outstanding under the term loan | $ 652,922,000 | $ 659,517,000 | ||||||||||||||||||
Percentage voting stock of foreign subsidiaries | 65.00% | |||||||||||||||||||
Multiple consolidated interest expense under sub condition two of condition two under dividend restriction | 1.75 | |||||||||||||||||||
Debt issuance costs | $ 4,962,000 | [1] | $ 330,000 | [1] | $ 521,000 | [1] | $ 2,446,000 | [1] | $ 783,000 | [1] | $ 28,700,000 | 29,815,000 | ||||||||
Loss on debt amendments and refinancing | 1,484,000 | [2] | $ 331,000 | [2] | $ 190,000 | [2] | $ 161,000 | [2] | $ 249,000 | [2] | 1,484,000 | 521,000 | $ 13,445,000 | |||||||
Carrying value of long-term debt | 1,809,311,000 | 1,817,295,000 | ||||||||||||||||||
Fair value of long-term debt | $ 1,774,066,000 | 1,840,918,000 | ||||||||||||||||||
Number of interest rate swap agreements | Agreement | 3 | |||||||||||||||||||
Deferred taxes | $ 1,243,000 | 0 | 138,000 | |||||||||||||||||
Designated as Hedging Instrument | Cash Flow Hedging | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Estimated fair value | [3] | 5,093,000 | ||||||||||||||||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swaps | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Estimated fair value | 5,093,000 | |||||||||||||||||||
Deferred taxes | $ 1,243,000 | |||||||||||||||||||
Amended Senior Secured Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Quarterly principal payments due | $ 1,649,000 | |||||||||||||||||||
Last quarterly payment date | Dec. 31, 2024 | |||||||||||||||||||
Final principal payment | $ 613,351,000 | |||||||||||||||||||
Actual coverage ratio | 290.00% | |||||||||||||||||||
Amended senior secured credit facility, dividend that could have distributed | $ 2,918,142,000 | |||||||||||||||||||
Amended Senior Secured Credit Facility | Maximum | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt covenants, required minimum coverage ratio | 500.00% | |||||||||||||||||||
4.875 % Senior Notes Due May 2023 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Aggregate principal amount of Senior Notes | $ 530,000,000 | |||||||||||||||||||
Debt covenants, required minimum coverage ratio | 200.00% | |||||||||||||||||||
Actual coverage ratio | 630.00% | |||||||||||||||||||
Interest rate | 4.875% | |||||||||||||||||||
Debt instrument, maturity date | Jun. 1, 2023 | |||||||||||||||||||
Senior notes indenture, amount that could have distributed | $ 2,980,550,000 | |||||||||||||||||||
Price to repurchase the senior subordinated notes as a percentage of the aggregate principal amount outstanding plus accrued and unpaid interest in case of change of control | 101.00% | |||||||||||||||||||
4.875 % Senior Notes Due June 1, 2023 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Aggregate principal amount of Senior Notes | $ 225,000,000 | $ 755,000,000 | ||||||||||||||||||
Interest rate | 4.875% | 4.875% | ||||||||||||||||||
Debt instrument, maturity date | Jun. 1, 2023 | |||||||||||||||||||
Price to repurchase the senior subordinated notes as a percentage of the aggregate principal amount outstanding plus accrued and unpaid interest in case of change of control | 99.00% | |||||||||||||||||||
Debt issuance costs | $ 3,702,000 | 3,702,000 | ||||||||||||||||||
Debt issue costs, discount | 2,250,000 | 2,250,000 | ||||||||||||||||||
7.375% senior subordinated notes due 2021 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Aggregate principal amount of Senior Notes | $ 200,000,000 | $ 200,000,000 | ||||||||||||||||||
Interest rate | 7.375% | 7.375% | ||||||||||||||||||
Debt instrument, maturity period | 2,021 | 2,021 | ||||||||||||||||||
Percentage of debt repayment premium | 104.00% | |||||||||||||||||||
Write off of unamortization of debt issuance cost | $ 2,369,000 | |||||||||||||||||||
Early retirement of debt | $ 9,444,000 | |||||||||||||||||||
Loss on debt amendments and refinancing | $ 1,222,000 | |||||||||||||||||||
5.125% senior notes due 2022 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Aggregate principal amount of Senior Notes | $ 400,000,000 | |||||||||||||||||||
Debt covenants, required minimum coverage ratio | 200.00% | |||||||||||||||||||
Actual coverage ratio | 630.00% | |||||||||||||||||||
Interest rate | 5.125% | |||||||||||||||||||
Debt instrument, maturity date | Dec. 15, 2022 | |||||||||||||||||||
Debt instrument, maturity period | 2,022 | |||||||||||||||||||
Price to repurchase the senior subordinated notes as a percentage of the aggregate principal amount outstanding plus accrued and unpaid interest in case of change of control | 101.00% | |||||||||||||||||||
Description of debt Instrument frequency of periodic payment | Interest on the 5.125% Senior Notes is payable on June 15 and December 15 of each year. | |||||||||||||||||||
Senior notes indenture, amount that could have distributed | $ 2,985,833,000 | |||||||||||||||||||
Term Loan Credit facility | Senior Secured Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Aggregate principal amount of Senior Notes | 700,000,000 | |||||||||||||||||||
Term Loan Credit facility | Amended Senior Secured Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Final principal payment due date | Mar. 29, 2025 | |||||||||||||||||||
Percentage of Variable rate added to federal funds effective rate | 0.50% | |||||||||||||||||||
Percentage of variable margin rate added to one-month Eurodollar rate | 1.00% | |||||||||||||||||||
Percentage of variable margin rate added to Eurodollar rate | 1.75% | |||||||||||||||||||
Debt instrument description of interest | a Eurodollar-based rate for a period of 1, 2, 3, 6, 9 or 12 months plus a margin of 1.75% per annum. | |||||||||||||||||||
Amount outstanding under the term loan | $ 652,922,000 | |||||||||||||||||||
Average interest rate on outstanding borrowings | 4.40% | |||||||||||||||||||
Term Loan Credit facility | Amended Senior Secured Credit Facility | One Month Eurodollar Rate | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage of variable margin rate added to Eurodollar rate | 0.75% | |||||||||||||||||||
Revolving Credit Line | Senior Secured Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Aggregate principal amount of Senior Notes | $ 100,000,000 | |||||||||||||||||||
Revolving Credit Line | Amended Senior Secured Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage of Variable rate added to federal funds effective rate | 0.50% | |||||||||||||||||||
Percentage of variable margin rate added to one-month Eurodollar rate | 1.00% | |||||||||||||||||||
Debt instrument description of interest | a Eurodollar-based rate for a period of 1, 2, 3, 6, 9 or 12 months plus a margin that ranges from 1.50% to 2.25% per annum. | |||||||||||||||||||
Amount outstanding under the revolving credit line | 0 | $ 0 | ||||||||||||||||||
Available borrowing capacity | $ 98,846,000 | |||||||||||||||||||
Revolving Credit Line | Amended Senior Secured Credit Facility | Minimum | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage of variable margin rate added to Eurodollar rate | 1.50% | |||||||||||||||||||
Revolving Credit Line | Amended Senior Secured Credit Facility | Maximum | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage of variable margin rate added to Eurodollar rate | 2.25% | |||||||||||||||||||
Revolving Credit Line | Amended Senior Secured Credit Facility | One Month Eurodollar Rate | Minimum | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage of variable margin rate added to Eurodollar rate | 0.50% | |||||||||||||||||||
Revolving Credit Line | Amended Senior Secured Credit Facility | One Month Eurodollar Rate | Maximum | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage of variable margin rate added to Eurodollar rate | 1.25% | |||||||||||||||||||
[1] | Reflected as a reduction of long term debt on the consolidated balance sheet. | |||||||||||||||||||
[2] | Reflected as a loss on debt amendments and refinancing on the consolidated statement of income for the year in which the amendments were effective. | |||||||||||||||||||
[3] | Included in other long-term liabilities on the consolidated balance sheet as of December 31, 2018. |
Long Term Debt - Amendment of C
Long Term Debt - Amendment of Credit Agreement (Detail) - USD ($) $ in Thousands | Mar. 29, 2018 | Nov. 28, 2017 | Jun. 16, 2017 | Dec. 15, 2016 | Jun. 13, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Debt Instrument [Line Items] | |||||||||||||
Debt Issue Cost Paid | $ 4,962 | [1] | $ 330 | [1] | $ 521 | [1] | $ 2,446 | [1] | $ 783 | [1] | $ 28,700 | $ 29,815 | |
Loss on Debt Amendment | $ 1,484 | [2] | $ 331 | [2] | $ 190 | [2] | $ 161 | [2] | $ 249 | [2] | $ 1,484 | $ 521 | $ 13,445 |
Amended Credit Agreement June 13, 2016 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Nature of Amendment | Reduced term loan interest rate by 0.25% | ||||||||||||
Amended Credit Agreement December 15, 2016 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Nature of Amendment | Reduced term loan interest rate by 0.50% | ||||||||||||
Amended Credit Agreement June 16, 2017 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Nature of Amendment | Reduced term loan interest rate by 0.25%; modified certain definitions and other provisions in the Credit Agreement | ||||||||||||
Amended Credit Agreement November 28, 2017 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Nature of Amendment | Extended maturity of revolving credit line to December 2022; reduced the interest rate applicable to borrowings under the credit line | ||||||||||||
Amended Credit Agreement March 29, 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Nature of Amendment | Extended maturity of term loan to March 2025; reduced term loan interest rate by 0.25%; reduced real property mortgage requirements | ||||||||||||
[1] | Reflected as a reduction of long term debt on the consolidated balance sheet. | ||||||||||||
[2] | Reflected as a loss on debt amendments and refinancing on the consolidated statement of income for the year in which the amendments were effective. |
Long Term Debt - Amendment of_2
Long Term Debt - Amendment of Credit Agreement (Parenthetical) (Detail) | Mar. 29, 2018 | Nov. 28, 2017 | Jun. 16, 2017 | Dec. 15, 2016 | Jun. 13, 2016 |
Debt Disclosure [Abstract] | |||||
Debt instrument, reduction in interest rate | 0.25% | 0.25% | 0.50% | 0.25% | |
Debt instrument, extended maturity date | 2025-03 | 2022-12 |
Maturities of Long-Term Debt, E
Maturities of Long-Term Debt, Excluding Unamortized Debt Issuance Costs (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 7,984 | |
2,020 | 6,595 | |
2,021 | 6,595 | |
2,022 | 406,595 | |
2,023 | 761,595 | |
Thereafter | 619,947 | |
Total | $ 1,809,311 | $ 1,817,295 |
Long Term Debt - Summary of Int
Long Term Debt - Summary of Interest Rate Swap Agreements (Detail) - Cash Flow Hedging - Designated as Hedging Instrument $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | $ 5,093 | [1] |
Interest Rate Swap Agreement 1 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 175,000 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.751% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2022 | |
Estimated Fair Value | $ 1,983 | [1] |
Interest Rate Swap Agreement 2 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 137,500 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.765% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2022 | |
Estimated Fair Value | $ 1,624 | [1] |
Interest Rate Swap Agreement 3 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 137,500 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.746% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2022 | |
Estimated Fair Value | $ 1,486 | [1] |
[1] | Included in other long-term liabilities on the consolidated balance sheet as of December 31, 2018. |
Summary of Liabilities Measured
Summary of Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value on Recurring Basis $ in Thousands | Dec. 31, 2018USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Interest rate swap liabilities | $ (5,093) |
Level 3 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Interest rate swap liabilities | $ (5,093) |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Balance for Liabilities Measured at Fair Value on Recurring Basis Unobservable Inputs (Detail) - Interest Rate Swaps $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | [1] | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Interest rate swaps effective December 31, 2018 | $ 5,093 | |
Ending balance - December 31 | $ 5,093 | |
[1] | Represents interest rate swap liabilities. See Note 11 for further discussion. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |||
Fair value of assets transfers in or out, level 1 to level 2 | $ 0 | $ 0 | $ 0 |
Fair value of assets transfers in or out, level 2 to level 1 | 0 | 0 | 0 |
Fair value, asset transfers into Level 3 | 0 | 0 | 0 |
Fair value, asset transfers out of Level 3 | $ 0 | $ 0 | $ 0 |
Foreign Currency Translation -
Foreign Currency Translation - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign Currency Translation [Line Items] | ||
Accumulated other comprehensive income (loss) | $ 319,007 | $ 253,282 |
Cumulative foreign currency adjustments | $ 315,300 | 253,565 |
Cumulative inflation rate | 100.00% | |
Cumulative inflation period | 3 years | |
Reclassification of cumulative foreign currency translation adjustments | $ 518 | (1,551) |
Canada | ||
Foreign Currency Translation [Line Items] | ||
Reclassification of cumulative foreign currency translation adjustments | $ 1,551 |
Summary of Impact of Translatin
Summary of Impact of Translating Financial Statements of Company's International Subsidiaries (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Foreign Currency Translation [Line Items] | ||||
Other comprehensive Income (Loss) | $ (62,253) | $ (4,966) | $ 26,394 | |
Brazil | ||||
Foreign Currency Translation [Line Items] | ||||
Exchange Rate | 3.88 | 3.31 | 3.26 | |
Other comprehensive Income (Loss) | $ (34,086) | $ (4,567) | $ 37,286 | |
Argentina | ||||
Foreign Currency Translation [Line Items] | ||||
Exchange Rate | [1] | 37.68 | 18.65 | 16.04 |
Other comprehensive Income (Loss) | [1] | $ (14,357) | $ (8,200) | $ (13,362) |
Colombia | ||||
Foreign Currency Translation [Line Items] | ||||
Exchange Rate | 3,249.75 | 2,936.67 | 3,000.71 | |
Other comprehensive Income (Loss) | $ (1,795) | $ 246 | $ 1,278 | |
Chile | ||||
Foreign Currency Translation [Line Items] | ||||
Exchange Rate | 694.74 | 615.97 | 679.09 | |
Other comprehensive Income (Loss) | $ (8,924) | $ 5,672 | $ 1,855 | |
Peru | ||||
Foreign Currency Translation [Line Items] | ||||
Exchange Rate | 3.39 | 3.24 | 3.45 | |
Other comprehensive Income (Loss) | $ (2,136) | $ 2,752 | $ 87 | |
Other foreign countries | ||||
Foreign Currency Translation [Line Items] | ||||
Other comprehensive Income (Loss) | (955) | (869) | (783) | |
International Subsidiaries | Cinemark USA, Inc. Stockholder's Equity | ||||
Foreign Currency Translation [Line Items] | ||||
Other comprehensive Income (Loss) | $ (62,253) | $ (4,966) | $ 26,361 | |
[1] | Amount represents the cumulative comprehensive loss recorded for Argentina through June 30, 2018. The impact of translating Argentina financial results to U.S. dollars, beginning July 1, 2018, which was not significant, has been recorded in foreign currency exchange gain (loss) on the Company’s consolidated statement of income. |
Non-controlling Interest in Sub
Non-controlling Interest in Subsidiaries (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interests | $ 12,379 | $ 11,893 |
Cinemark Partners II | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interests | 8,152 | 8,795 |
Laredo Theatre | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interests | 2,308 | 1,746 |
Greeley Ltd | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interests | 1,411 | 843 |
Other | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interests | $ 508 | $ 509 |
Non-controlling Interest in S_2
Non-controlling Interest in Subsidiaries (Parenthetical) (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Cinemark Partners II | ||
Noncontrolling Interest [Line Items] | ||
Ownership share | 24.60% | 24.60% |
Laredo Theatre | ||
Noncontrolling Interest [Line Items] | ||
Ownership share | 25.00% | 25.00% |
Greeley Ltd | ||
Noncontrolling Interest [Line Items] | ||
Ownership share | 49.00% | 49.00% |
Noncontrolling Interests in S_3
Noncontrolling Interests in Subsidiaries - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | ||||
Percentage of remaining share purchased | 25.00% | |||
Purchase of noncontrolling interest | $ 450 | |||
Decrease in additional paid-in-capital | $ 450 | |||
Noncontrolling interests | $ 12,379 | $ 11,893 | ||
Ownership percentage | 100.00% | 100.00% | ||
Flix Impirica S.A. | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interests | $ 423 | $ 423 | ||
Cinemark USA, Inc. Stockholder's Equity | ||||
Noncontrolling Interest [Line Items] | ||||
Decrease in additional paid-in-capital | $ 27 | $ 27 |
Summary of Impact of Changes in
Summary of Impact of Changes in Company's Ownership Interest in Subsidiary (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | |||
Net income attributable to Cinemark USA, Inc. | $ 215,735 | $ 265,643 | $ 256,777 |
Net transfers from non-controlling interests | 0 | (27) | |
Change from net income attributable to Cinemark USA, Inc. and transfers from noncontrolling interests | $ 215,735 | 265,643 | 256,750 |
Chile | |||
Noncontrolling Interest [Line Items] | |||
Decrease in Cinemark USA, Inc. additional paid-in-capital for the buyout of Flix Impirica non-controlling interest | $ 0 | $ (27) |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders Equity Note [Line Items] | |||
Preferred stock, shares | 1,000,000 | ||
Preferred stock, par value | $ 1 | ||
Preferred stock, issued | 0 | ||
Preferred stock, outstanding | 0 | ||
Restricted Stock | |||
Stockholders Equity Note [Line Items] | |||
Unrecognized compensation expense | $ 15,174 | ||
Remaining Compensation Expense recognition period (in years) | 2 years | ||
Restricted Stock | Cinemark USA, Inc. | |||
Stockholders Equity Note [Line Items] | |||
Unrecognized compensation expense | $ 14,758 | ||
Restricted Stock | Cinemark Holdings, Inc. | |||
Stockholders Equity Note [Line Items] | |||
Shares of restricted stock, granted | 328,734 | 246,534 | 335,707 |
Market value of common stock on the dates of grant | $ 38.72 | $ 41.70 | $ 30.98 |
Unrecognized compensation expense | $ 416 | ||
Restricted Stock | Directors | |||
Stockholders Equity Note [Line Items] | |||
Award vesting period for restricted stock granted | 1 year | ||
Restricted Stock | Minimum | |||
Stockholders Equity Note [Line Items] | |||
Forfeiture rate for restricted stock awards | 0.00% | ||
Restricted Stock | Minimum | Cinemark Holdings, Inc. | |||
Stockholders Equity Note [Line Items] | |||
Market value of common stock on the dates of grant | $ 35.80 | ||
Restricted Stock | Minimum | Employees | |||
Stockholders Equity Note [Line Items] | |||
Award vesting period for restricted stock granted | 1 year | ||
Restricted Stock | Maximum | |||
Stockholders Equity Note [Line Items] | |||
Forfeiture rate for restricted stock awards | 10.00% | ||
Restricted Stock | Maximum | Cinemark Holdings, Inc. | |||
Stockholders Equity Note [Line Items] | |||
Market value of common stock on the dates of grant | $ 39.26 | ||
Restricted Stock | Maximum | Employees | |||
Stockholders Equity Note [Line Items] | |||
Award vesting period for restricted stock granted | 4 years | ||
Restricted Stock Units (RSUs) | |||
Stockholders Equity Note [Line Items] | |||
Market value of common stock on the dates of grant | $ 42.37 | $ 29.83 | |
Unrecognized compensation expense | $ 8,416 | ||
Remaining Compensation Expense recognition period (in years) | 2 years | ||
Share-based compensation arrangement by share-based payment award, description | The financial performance factors are based on an implied equity value concept that determines an internal rate of return (“IRR”) for a two year measurement period, as defined in the award agreement, based on a formula utilizing a multiple of Adjusted EBITDA subject to certain specified adjustments (as defined in the restricted stock unit award agreement). | ||
Share-based compensation arrangement by share-based payment award, vesting condition | All payouts of restricted stock units that vest will be subject to an additional service requirement and will be paid in the form of common stock if the participant continues to provide services through the fourth anniversary of the grant date. | ||
Internal rate of return, performance period | 2 years | ||
Percentage of IRR expected | 9.00% | ||
Expected forfeiture rate | 5.00% | ||
Number of hypothetical shares of common stock at maximum IRR level | 594,266 | ||
Actual cumulative forfeitures (in units) | 18,667 | ||
Restricted Stock Units (RSUs) | Stock Grants 2016 | |||
Stockholders Equity Note [Line Items] | |||
Achieved Percentage of IRR | 7.20% | ||
Restricted Stock Units (RSUs) | Stock Grants 2017 | |||
Stockholders Equity Note [Line Items] | |||
Estimated Percentage of IRR | 11.20% | ||
Restricted Stock Units (RSUs) | Stock Grants 2018 | |||
Stockholders Equity Note [Line Items] | |||
Estimated Percentage of IRR | 9.50% | ||
Restricted Stock Units (RSUs) | Cinemark Holdings, Inc. | |||
Stockholders Equity Note [Line Items] | |||
Number of hypothetical shares of common stock | 228,194 | 175,634 | 253,661 |
Restricted Stock Units (RSUs) | Cinemark Holdings, Inc. | Stock Grants 2013 and 2014 | |||
Stockholders Equity Note [Line Items] | |||
Stock price at the date of modification | $ 37.98 | ||
Incremental compensation expense | $ 562 | ||
Restricted Stock Units (RSUs) | Minimum | |||
Stockholders Equity Note [Line Items] | |||
Market value of common stock on the dates of grant | $ 37.55 | ||
Restricted Stock Units (RSUs) | Maximum | |||
Stockholders Equity Note [Line Items] | |||
Market value of common stock on the dates of grant | $ 39.03 | ||
Class A common stock | |||
Stockholders Equity Note [Line Items] | |||
Common stock, shares outstanding | 1,500 | 1,500 | |
Class B common stock | |||
Stockholders Equity Note [Line Items] | |||
Common stock, shares outstanding | 182,648 | 182,648 |
Summary of Restricted Stock Act
Summary of Restricted Stock Activity (Detail) - Restricted Stock - Cinemark Holdings, Inc. - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares of Restricted Stock | |||
Shares of Restricted Stock, Beginning balance | 650,581 | 606,618 | 757,775 |
Shares of Restricted Stock, Granted | 328,734 | 246,534 | 335,707 |
Shares of Restricted Stock, Vested | (250,442) | (192,230) | (430,056) |
Shares of Restricted Stock, Forfeited | (24,520) | (10,341) | (56,808) |
Shares of Restricted Stock, Ending balance | 704,353 | 650,581 | 606,618 |
Weighted Average Grant Date Fair Value | |||
Weighted Average Grant Date Fair Value Outstanding, Beginning | $ 35.81 | $ 33.51 | $ 30.73 |
Weighted Average Grant Date Fair Value, Granted | 38.72 | 41.70 | 30.98 |
Weighted Average Grant Date Fair Value, Vested | 31.27 | 36.26 | 26.60 |
Weighted Average Grant Date Fair Value, Forfeited | 38.62 | 33.48 | 33.81 |
Weighted Average Grant Date Fair Value Outstanding, Ending | $ 38.68 | $ 35.81 | $ 33.51 |
Summary of Restricted Stock Awa
Summary of Restricted Stock Award Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense recognized during the period | $ 8,735 | $ 7,528 | $ 7,269 |
Restricted Stock | Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted shares that vested during the period | 8,699 | 7,255 | 13,739 |
Income tax benefit recognized upon vesting of share based awards | $ 1,543 | $ 2,281 | $ 5,167 |
Restricted Stock | Cinemark Holdings, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock unit awards that vested during the period | 250,442 | 192,230 | 430,056 |
Compensation expense recognized during the period | $ 920 | $ 856 | $ 981 |
Restricted Stock | Cinemark Holdings, Inc. | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted shares that vested during the period | 802 | 917 | 923 |
Income tax benefit recognized upon vesting of share based awards | $ 201 | $ 386 | $ 388 |
Restricted Stock Units (RSUs) | Cinemark Holdings, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock unit awards that vested during the period | 127,084 | 97,115 | 213,984 |
Fair value of restricted shares that vested during the period | $ 4,846 | $ 4,155 | $ 7,260 |
Accumulated dividends paid upon vesting of restricted stock unit awards | 526 | 558 | 662 |
Income tax benefit recognized upon vesting of share based awards | 708 | 1,745 | 3,049 |
Compensation expense recognized during the period | $ 4,681 | $ 4,297 | $ 5,144 |
Summary of Financial Performanc
Summary of Financial Performance Thresholds and Vesting Rates (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Threshold IRR | 7.00% | 7.00% | 6.00% |
Target IRR | 9.50% | 9.50% | 8.00% |
Maximum IRR | 13.00% | 13.00% | 10.00% |
Threshold IRR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Shares Vesting | 33.30% | ||
Targeted IRR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Shares Vesting | 66.60% | ||
Maximum IRR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Shares Vesting | 100.00% |
Summary of Potential Number of
Summary of Potential Number of Units that Could Vest Under Restricted Stock Unit Awards (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure Of Restricted Stock Unit [Abstract] | ||||
Number of units at threshold IRR | 76,065 | 58,545 | 84,554 | |
Number of units at target IRR | 152,129 | 117,089 | 169,107 | |
Number of units at maximum IRR | 228,194 | 175,634 | 253,661 | |
Fair value of units at threshold IRR | [1] | $ 2,967 | $ 2,481 | $ 2,522 |
Fair value of units at target IRR | [1] | 5,938 | 4,961 | 5,044 |
Fair value of units at maximum IRR | [1] | $ 8,906 | $ 7,442 | $ 7,568 |
[1] | The grant date fair values for units issued during the years ended December 31, 2016 and 2017 were $29.83 and $42.37, respectively. The grant date fair values for the units issued during the year ended December 31, 2018 ranged from $37.55 to $39.03. |
Summary of Potential Number o_2
Summary of Potential Number of Units that Could Vest Under Restricted Stock Unit Awards (Parenthetical) (Detail) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Restricted Stock Unit [Line Items] | |||
Weighted Average Grant Date Fair Value, Granted | $ 42.37 | $ 29.83 | |
Minimum | |||
Schedule Of Restricted Stock Unit [Line Items] | |||
Weighted Average Grant Date Fair Value, Granted | $ 37.55 | ||
Maximum | |||
Schedule Of Restricted Stock Unit [Line Items] | |||
Weighted Average Grant Date Fair Value, Granted | $ 39.03 |
Supplemental Information to Con
Supplemental Information to Condensed Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Schedule Of Cash Flow Supplemental [Line Items] | ||||
Cash paid for interest | $ 98,411 | $ 99,232 | $ 108,101 | |
Cash paid for income taxes, net of refunds received | 64,199 | 95,043 | 93,368 | |
Noncash investing and financing activities: | ||||
Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment | [1] | (5,728) | 9,349 | (29,471) |
Theatre properties acquired under capital lease | 18,851 | 46,727 | 33,282 | |
Investment in NCM – receipt of common units (see Note 4) | 5,012 | $ 18,363 | $ 11,111 | |
NCM | ||||
Noncash investing and financing activities: | ||||
Interest expense - NCM (see Note 3) | $ (19,724) | |||
[1] | Additions to theatre properties and equipment included in accounts payable as of December 31, 2017 and 2018 were $31,276 and $37,004, respectively. |
Supplemental Information to C_2
Supplemental Information to Condensed Consolidated Statements of Cash Flows (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Additions to theatre properties and equipment included in accounts payable | $ 37,004 | $ 31,276 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Corporate income tax rate | 21.00% | 35.00% | |
Net additional non-cash provisional income tax expenses | $ 19,180 | ||
Accumulated undistributed earnings and profits | 415,323 | ||
One-time transition tax accumulated undistributed earnings and profits | 373,768 | ||
Valuation allowance against deferred assets – non-current | 54,725 | $ 35,246 | |
Gross unrecognized tax benefits, including interest and penalties | 13,953 | 20,231 | |
Unrecognized tax benefit that if recognized would impact effective tax rate | 13,953 | 20,231 | |
Accrued for interest and penalties | 3,390 | 5,288 | |
Tax benefit | (96,032) | $ (80,256) | $ (104,851) |
Chile | |||
Income Taxes [Line Items] | |||
Tax benefit | $ 6,802 | ||
Foreign | Minimum | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards expiring year | 2,023 | ||
State | Minimum | |||
Income Taxes [Line Items] | |||
Net operating losses carried forward expiring period | 5 years | ||
State | Maximum | |||
Income Taxes [Line Items] | |||
Net operating losses carried forward expiring period | 20 years | ||
Net operating losses carried forward expiring year | 2,037 |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, U.S. | $ 292,238 | $ 282,896 | $ 277,474 |
Income before income taxes, Foreign | 21,007 | 64,842 | 85,890 |
Income before income taxes | $ 313,245 | $ 347,738 | $ 363,364 |
Current and Deferred Income Tax
Current and Deferred Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 47,333 | $ 55,224 | $ 66,210 |
Foreign | 11,822 | 29,306 | 32,047 |
State | 13,690 | 10,741 | 12,061 |
Total current expense | 72,845 | 95,271 | 110,318 |
Deferred: | |||
Federal | 27,055 | (14,046) | (13,667) |
Foreign | (6,166) | (4,270) | 1,674 |
State | 2,298 | 3,301 | 6,526 |
Total deferred taxes | 23,187 | (15,015) | (5,467) |
Income taxes | $ 96,032 | $ 80,256 | $ 104,851 |
Reconciliation Between Income T
Reconciliation Between Income Tax Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | ||||
Computed statutory tax expense | $ 65,781 | $ 121,708 | $ 127,176 | |
Foreign inflation adjustments | (281) | |||
State and local income taxes, net of federal income tax impact | 12,686 | 12,857 | 12,081 | |
Foreign losses not benefited and changes in valuation allowance | 822 | 249 | (34,757) | |
Foreign tax rate differential | 2,235 | (245) | (942) | |
Foreign dividends | 13,662 | 68,684 | ||
Foreign tax credits | 3,927 | (21,647) | (62,815) | |
Impacts related to 2017 Tax Act | [1],[2] | 19,180 | (44,889) | |
Changes in uncertain tax positions | (6,139) | 983 | 921 | |
Other — net | (2,460) | (2,422) | (5,216) | |
Income taxes | $ 96,032 | $ 80,256 | $ 104,851 | |
[1] | The year ended December 31, 2017 includes one-time benefit due to re-measurement of net deferred tax liabilities using a lower U.S. corporate tax rate and a reassessment of permanently reinvested earnings of ($79,834), a deemed repatriation tax of $14,512, and a reduction in deferred tax assets with regard to foreign tax credit carryforwards of $20,433. | |||
[2] | The year ended December 31, 2018 includes a one-time true-up of deferred taxes of $1,913 and a reduction in deferred tax assets with regard to foreign tax credit carryforwards of $17,267. |
Reconciliation Between Income_2
Reconciliation Between Income Tax Expenses (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
One-time benefit due to re-measurement of net deferred tax liabilities | $ (79,834) | |
One-time charge to true-up deferred taxes | $ 1,913 | |
Deemed repatriation tax amount | 14,512 | |
Reduction in deferred tax assets with regard to foreign tax credit carryforwards | $ 17,267 | $ 20,433 |
Net Long-Term Deferred Income T
Net Long-Term Deferred Income Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Theatre properties and equipment | $ 158,797 | $ 147,208 |
Intangible asset — other | 33,561 | 30,770 |
Intangible asset — tradenames | 73,261 | 72,967 |
Investment in partnerships | 63,217 | 67,449 |
Total deferred liabilities | 328,836 | 318,394 |
Deferred lease expenses | 13,464 | 14,714 |
Exchange loss | 1,306 | 220 |
Deferred revenue - NCM | 70,688 | 85,816 |
Capital lease obligations | 63,895 | 67,369 |
Tax impact of items in accumulated other comprehensive income | 2,237 | |
Other tax loss carryforwards | 15,608 | 15,564 |
Other tax credit carryforwards | 42,989 | 38,436 |
Other expenses, not currently deductible for tax purposes | 26,776 | 13,801 |
Total deferred assets | 236,963 | 235,920 |
Net deferred income tax liability before valuation allowance | 91,873 | 82,474 |
Valuation allowance against deferred assets – non-current | 54,725 | 35,246 |
Net deferred income tax liability | 146,598 | 117,720 |
Foreign | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Net deferred income tax liability | 3,073 | |
Net deferred income tax (asset) | (5,449) | |
U.S. | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Net deferred income tax liability | $ 152,047 | $ 114,647 |
Reconciliation of Total Amounts
Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | $ 18,266 | $ 17,403 | $ 17,133 |
Gross increases - tax positions in prior periods | 92 | 13 | |
Gross decreases - tax positions in prior periods | (143) | (12) | |
Gross increases - current period tax positions | 424 | 265 | 923 |
Settlements | (7,191) | (177) | (924) |
Foreign currency translation adjustments | (795) | 695 | 258 |
Ending Balance | $ 10,561 | $ 18,266 | $ 17,403 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Line Items] | ||
Liability for deferred lease expenses | $ 39,235 | $ 40,929 |
Employer matching contribution payments | 5,076 | $ 6,380 |
Liability recorded for employer contribution payments | $ 1,374 | |
Other Employees Except Tim Warner | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Employment agreements term extension | 1 year | |
Robert Carmony | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Employment agreement termination date | Jan. 2, 2018 | |
Zoradi | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Extended term date of employment agreement | Dec. 31, 2019 | |
Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Operating and capital leases with terms generally ranging | 10 years | |
Maximum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Operating and capital leases with terms generally ranging | 25 years |
Rent Expenses (Detail)
Rent Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Fixed rent expense | $ 248,543 | $ 247,908 | $ 242,927 |
Contingent rent and other facility lease expenses | 74,773 | 80,289 | 78,367 |
Total facility lease expense | $ 323,316 | $ 328,197 | $ 321,294 |
Future Minimum Lease Payments u
Future Minimum Lease Payments under Noncancelable Operating and Capital Leases Remaining Terms in Excess of One Year (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Commitments And Contingencies Disclosure [Abstract] | ||||
Future minimum operating lease payments, current | [1] | $ 253,323 | ||
Future minimum operating lease payments, in two years | [1] | 242,336 | ||
Future minimum operating lease payments, in three years | [1] | 230,396 | ||
Future minimum operating lease payments, in four years | [1] | 204,628 | ||
Future minimum operating lease payments, in five years | [1] | 176,802 | ||
Future minimum operating lease payments, thereafter | [1] | 677,091 | ||
Future minimum operating lease payments, total | [1] | 1,784,576 | ||
Future minimum capital leases payments, current | [1] | 42,434 | ||
Future minimum capital leases payments, in two years | [1] | 41,502 | ||
Future minimum capital leases payments, in three years | [1] | 34,589 | ||
Future minimum capital leases payments, in four years | [1] | 32,462 | ||
Future minimum capital leases payments, in five years | [1] | 28,534 | ||
Future minimum capital leases payments, thereafter | [1] | 166,375 | ||
Future minimum capital leases payments, total | [1] | 345,896 | ||
Amounts representing interest payments | [1] | (86,364) | ||
Present value of future minimum payments | [1] | 259,532 | ||
Current portion of capital lease obligations | (27,065) | [1] | $ (25,511) | |
Capital lease obligations, less current portion | $ 232,467 | [1] | $ 251,151 | |
[1] | Represents amounts before the adoption of ASC Topic 842 – Leases. See Note 2 for discussion of the expected impact of adoption. |
Selected Financial Information
Selected Financial Information by Reportable Operating Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,221,735 | $ 2,991,547 | $ 2,918,765 | |
Adjusted EBITDA | 783,130 | 725,269 | 707,840 | |
Capital expenditures | 346,073 | 380,862 | 326,908 | |
U.S. Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 2,538,957 | ||
International Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 682,778 | |||
Operating Segments | U.S. Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,551,719 | 2,236,237 | 2,230,693 | |
Adjusted EBITDA | 650,189 | 559,693 | 550,150 | |
Capital expenditures | 270,870 | 321,040 | 242,271 | |
Operating Segments | International Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 682,778 | 769,436 | 701,573 | |
Adjusted EBITDA | 132,941 | 165,576 | 157,690 | |
Capital expenditures | 75,203 | 59,822 | 84,637 | |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (12,762) | $ (14,126) | $ (13,501) | |
[1] | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. |
Reconciliation of Net Income to
Reconciliation of Net Income to Adjusted EBITDA (Detail) - USD ($) $ in Thousands | Mar. 29, 2018 | [2] | Nov. 28, 2017 | [2] | Jun. 16, 2017 | [2] | Dec. 15, 2016 | [2] | Jun. 13, 2016 | [2] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||||||||||||||
Net income | $ 217,213 | $ 267,482 | $ 258,513 | |||||||||||
Add (deduct): | ||||||||||||||
Income taxes | 96,032 | 80,256 | 104,851 | |||||||||||
Interest expense | [1] | 109,994 | 105,918 | 108,313 | ||||||||||
Loss on debt amendments and refinancing | $ 1,484 | $ 331 | $ 190 | $ 161 | $ 249 | 1,484 | 521 | 13,445 | ||||||
Other income | [3] | (18,450) | (43,121) | (44,813) | ||||||||||
Other cash distributions from equity investees | [4] | 30,143 | 25,973 | 21,916 | ||||||||||
Depreciation and amortization | 261,162 | 237,513 | 209,071 | |||||||||||
Impairment of long-lived assets | 32,372 | 15,084 | 2,836 | |||||||||||
Loss on disposal of assets and other | 38,702 | 22,812 | 20,459 | |||||||||||
Deferred lease expenses | (1,320) | (1,268) | (990) | |||||||||||
Amortization of long-term prepaid rents | 2,382 | 2,274 | 1,826 | |||||||||||
Share based awards compensation expense | 13,416 | 11,825 | 12,413 | |||||||||||
Adjusted EBITDA | $ 783,130 | $ 725,269 | $ 707,840 | |||||||||||
[1] | Includes amortization of debt issue costs. | |||||||||||||
[2] | Reflected as a loss on debt amendments and refinancing on the consolidated statement of income for the year in which the amendments were effective. | |||||||||||||
[3] | Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income of affiliates and excludes distributions from NCM. | |||||||||||||
[4] | Includes distributions received from equity investees that were recorded as a reduction of the respective investment balances. |
Selected Financial Informatio_2
Selected Financial Information by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 3,221,735 | $ 2,991,547 | $ 2,918,765 |
Theatre Properties and Equipment - net | 1,833,133 | 1,828,054 | |
Reportable Geographical Components | U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,551,719 | 2,236,237 | 2,230,693 |
Theatre Properties and Equipment - net | 1,479,603 | 1,439,168 | |
Reportable Geographical Components | Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 283,009 | 341,485 | 304,407 |
Theatre Properties and Equipment - net | 140,570 | 179,669 | |
Reportable Geographical Components | Other international countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 399,769 | 427,951 | 397,166 |
Theatre Properties and Equipment - net | 212,960 | 209,217 | |
Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ (12,762) | $ (14,126) | $ (13,501) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)TheatreFacilityLease | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | |||
Cash dividends paid to Cinemark Holdings, Inc. | $ 148,750,000 | $ 134,500,000 | $ 124,900,000 |
Receivable from Cinemark Holdings, Inc. | $ 19,530,000 | 14,581,000 | |
FE Concepts LLC | |||
Related Party Transaction [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Laredo Theatres, Ltd | |||
Related Party Transaction [Line Items] | |||
Company's interest in Laredo | 75.00% | ||
Lone Star Theatre's interest in Laredo | 25.00% | ||
Ownership interest held by David Roberts | 100.00% | ||
Percentage of common stock held by Chairman of the Board of Directors | 8.00% | ||
Percentage of management fees based on theatre revenues | 5.00% | ||
Maximum amount of theater revenue used to calculate management fees | $ 50,000,000 | ||
Percentage of management fees based on theatre revenues in excess | 3.00% | ||
Minimum amount of theater revenue used to calculate management fees | $ 50,000,000 | ||
Management fee revenues | 654,000 | 586,000 | 506,000 |
Copper Beech Capital LLC | |||
Related Party Transaction [Line Items] | |||
Amount paid for the use of aircraft | 68,000 | 131,000 | 110,000 |
Pinstack | |||
Related Party Transaction [Line Items] | |||
Amount paid for the event for employees and their families | $ 5,000 | 36,000 | 70,000 |
Syufy Enterprises, LP | |||
Related Party Transaction [Line Items] | |||
Number of theatres leased | Theatre | 14 | ||
Number of parking facilities leased | Facility | 1 | ||
Total number of leases | Lease | 15 | ||
Number of leases with minimum annual rent | Lease | 14 | ||
Number of leases without minimum annual rent | Lease | 1 | ||
Total rent paid to Syufy | $ 23,447,000 | 22,483,000 | 21,124,000 |
Cinemark Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Cash dividends paid to Cinemark Holdings, Inc. | 148,750,000 | 134,500,000 | $ 124,900,000 |
Receivable from Cinemark Holdings, Inc. | $ 19,530,000 | $ 14,581,000 |
Valuation Allowance of Deferred
Valuation Allowance of Deferred Tax Assets (Detail) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | $ 35,246 | $ 14,524 | $ 50,636 | |
Additions | 22,005 | [1] | 21,347 | 483 |
Deductions | (2,526) | (625) | (36,595) | |
Ending Balance | $ 54,725 | $ 35,246 | $ 14,524 | |
[1] | A valuation allowance was provided against certain deferred tax assets arising from carryforwards of unused foreign tax credit benefits. |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information of Subsidiary Guarantors - Additional Information (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
5.125% Senior Notes Due 2022 | |
Condensed Consolidating Financial Information [Line Items] | |
Outstanding aggregate principal amount of Senior Notes | $ 400,000 |
Interest rate | 5.125% |
4.875% Senior Notes Due 2023 | |
Condensed Consolidating Financial Information [Line Items] | |
Outstanding aggregate principal amount of Senior Notes | $ 755,000 |
Interest rate | 4.875% |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets | |||||
Cash and cash equivalents | $ 426,216 | $ 522,415 | |||
Other current assets | 132,797 | 135,021 | |||
Accounts receivable from parent or subsidiaries | 19,530 | 14,581 | |||
Total current assets | 578,543 | 672,017 | |||
Theatre properties and equipment - net | 1,833,133 | 1,828,054 | |||
Investment in subsidiaries | 0 | 0 | |||
Other assets | 2,089,675 | 1,985,269 | |||
Total assets | 4,501,351 | 4,485,340 | |||
Current liabilities | |||||
Current portion of long-term debt | 7,984 | 7,099 | |||
Current portion of capital lease obligations | 27,065 | [1] | 25,511 | ||
Accounts payable and accrued expenses | 439,004 | 435,676 | |||
Accounts payable to parent or subsidiaries | 0 | 0 | |||
Total current liabilities | 474,053 | 468,286 | |||
Long-term liabilities | |||||
Long-term debt, less current portion | 1,772,627 | 1,780,381 | |||
Capital lease obligations, less current portion | 232,467 | [1] | 251,151 | ||
Other long-term liabilities and deferrals | 545,021 | 564,027 | |||
Total long-term liabilities | 2,550,115 | 2,595,559 | |||
Commitments and contingencies | |||||
Cinemark USA, Inc.'s stockholder's equity: | |||||
Common stock | 49,543 | 49,543 | |||
Other stockholder's equity | 1,415,261 | 1,360,059 | |||
Total Cinemark USA, Inc.'s stockholder's equity | 1,464,804 | 1,409,602 | |||
Noncontrolling interests | 12,379 | 11,893 | |||
Total equity | 1,477,183 | 1,421,495 | $ 1,284,080 | $ 1,113,251 | |
Total liabilities and equity | 4,501,351 | 4,485,340 | |||
Eliminations | |||||
Current assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Other current assets | (15,178) | (19,270) | |||
Accounts receivable from parent or subsidiaries | (265,363) | (223,007) | |||
Total current assets | (280,541) | (242,277) | |||
Theatre properties and equipment - net | 0 | 0 | |||
Investment in subsidiaries | (1,864,100) | (1,813,421) | |||
Other assets | (112,536) | (113,720) | |||
Total assets | (2,257,177) | (2,169,418) | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | 0 | |||
Current portion of capital lease obligations | 0 | 0 | |||
Accounts payable and accrued expenses | (13,622) | (6,402) | |||
Accounts payable to parent or subsidiaries | (265,363) | (223,007) | |||
Total current liabilities | (278,985) | (229,409) | |||
Long-term liabilities | |||||
Long-term debt, less current portion | (107,955) | (109,822) | |||
Capital lease obligations, less current portion | 0 | 0 | |||
Other long-term liabilities and deferrals | (6,137) | (16,766) | |||
Total long-term liabilities | (114,092) | (126,588) | |||
Commitments and contingencies | |||||
Cinemark USA, Inc.'s stockholder's equity: | |||||
Common stock | (467,606) | (467,606) | |||
Other stockholder's equity | (1,396,494) | (1,345,815) | |||
Total Cinemark USA, Inc.'s stockholder's equity | (1,864,100) | (1,813,421) | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | (1,864,100) | (1,813,421) | |||
Total liabilities and equity | (2,257,177) | (2,169,418) | |||
Cinemark USA, Inc. | |||||
Current assets | |||||
Cash and cash equivalents | 197,965 | 130,590 | |||
Other current assets | 60,829 | 59,661 | |||
Accounts receivable from parent or subsidiaries | 0 | 117,972 | |||
Total current assets | 258,794 | 308,223 | |||
Theatre properties and equipment - net | 664,759 | 650,783 | |||
Investment in subsidiaries | 1,806,255 | 1,691,626 | |||
Other assets | 1,500,366 | 1,427,328 | |||
Total assets | 4,230,174 | 4,077,960 | |||
Current liabilities | |||||
Current portion of long-term debt | 6,595 | 5,710 | |||
Current portion of capital lease obligations | 11,918 | 9,532 | |||
Accounts payable and accrued expenses | 297,302 | 215,580 | |||
Accounts payable to parent or subsidiaries | 40,421 | 0 | |||
Total current liabilities | 356,236 | 230,822 | |||
Long-term liabilities | |||||
Long-term debt, less current portion | 1,872,627 | 1,878,992 | |||
Capital lease obligations, less current portion | 123,329 | 132,189 | |||
Other long-term liabilities and deferrals | 413,177 | 426,355 | |||
Total long-term liabilities | 2,409,133 | 2,437,536 | |||
Commitments and contingencies | |||||
Cinemark USA, Inc.'s stockholder's equity: | |||||
Common stock | 49,543 | 49,543 | |||
Other stockholder's equity | 1,415,262 | 1,360,059 | |||
Total Cinemark USA, Inc.'s stockholder's equity | 1,464,805 | 1,409,602 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 1,464,805 | 1,409,602 | |||
Total liabilities and equity | 4,230,174 | 4,077,960 | |||
Subsidiary Guarantors | |||||
Current assets | |||||
Cash and cash equivalents | 10,886 | 180,623 | |||
Other current assets | 19,997 | 17,841 | |||
Accounts receivable from parent or subsidiaries | 284,893 | 119,616 | |||
Total current assets | 315,776 | 318,080 | |||
Theatre properties and equipment - net | 789,536 | 765,500 | |||
Investment in subsidiaries | 57,845 | 121,795 | |||
Other assets | 155,011 | 134,845 | |||
Total assets | 1,318,168 | 1,340,220 | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | 0 | |||
Current portion of capital lease obligations | 9,406 | 11,124 | |||
Accounts payable and accrued expenses | 58,544 | 116,409 | |||
Accounts payable to parent or subsidiaries | 0 | 0 | |||
Total current liabilities | 67,950 | 127,533 | |||
Long-term liabilities | |||||
Long-term debt, less current portion | 0 | 0 | |||
Capital lease obligations, less current portion | 59,539 | 75,767 | |||
Other long-term liabilities and deferrals | 60,137 | 60,567 | |||
Total long-term liabilities | 119,676 | 136,334 | |||
Commitments and contingencies | |||||
Cinemark USA, Inc.'s stockholder's equity: | |||||
Common stock | 457,368 | 457,368 | |||
Other stockholder's equity | 673,174 | 618,985 | |||
Total Cinemark USA, Inc.'s stockholder's equity | 1,130,542 | 1,076,353 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 1,130,542 | 1,076,353 | |||
Total liabilities and equity | 1,318,168 | 1,340,220 | |||
Subsidiary Non-Guarantors | |||||
Current assets | |||||
Cash and cash equivalents | 217,365 | 211,202 | |||
Other current assets | 67,149 | 76,789 | |||
Accounts receivable from parent or subsidiaries | 0 | 0 | |||
Total current assets | 284,514 | 287,991 | |||
Theatre properties and equipment - net | 378,838 | 411,771 | |||
Investment in subsidiaries | 0 | 0 | |||
Other assets | 546,834 | 536,816 | |||
Total assets | 1,210,186 | 1,236,578 | |||
Current liabilities | |||||
Current portion of long-term debt | 1,389 | 1,389 | |||
Current portion of capital lease obligations | 5,741 | 4,855 | |||
Accounts payable and accrued expenses | 96,780 | 110,089 | |||
Accounts payable to parent or subsidiaries | 224,942 | 223,007 | |||
Total current liabilities | 328,852 | 339,340 | |||
Long-term liabilities | |||||
Long-term debt, less current portion | 7,955 | 11,211 | |||
Capital lease obligations, less current portion | 49,599 | 43,195 | |||
Other long-term liabilities and deferrals | 77,844 | 93,871 | |||
Total long-term liabilities | 135,398 | 148,277 | |||
Commitments and contingencies | |||||
Cinemark USA, Inc.'s stockholder's equity: | |||||
Common stock | 10,238 | 10,238 | |||
Other stockholder's equity | 723,319 | 726,830 | |||
Total Cinemark USA, Inc.'s stockholder's equity | 733,557 | 737,068 | |||
Noncontrolling interests | 12,379 | 11,893 | |||
Total equity | 745,936 | 748,961 | |||
Total liabilities and equity | $ 1,210,186 | $ 1,236,578 | |||
[1] | Represents amounts before the adoption of ASC Topic 842 – Leases. See Note 2 for discussion of the expected impact of adoption. |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Income Information (Detail) - USD ($) $ in Thousands | Mar. 29, 2018 | [2] | Nov. 28, 2017 | [2] | Jun. 16, 2017 | [2] | Dec. 15, 2016 | [2] | Jun. 13, 2016 | [2] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | $ 3,221,735 | $ 2,991,547 | $ 2,918,765 | |||||||||||
Cost of operations | ||||||||||||||
Theatre operating expenses | 2,335,975 | 2,170,578 | 2,120,109 | |||||||||||
General and administrative expenses | 162,640 | 150,911 | 140,637 | |||||||||||
Depreciation and amortization | 261,162 | 237,513 | 209,071 | |||||||||||
Impairment of long-lived assets | 32,372 | 15,084 | 2,836 | |||||||||||
Loss on disposal of assets and other | 38,702 | 22,812 | 20,459 | |||||||||||
Total cost of operations | 2,830,851 | 2,596,898 | 2,493,112 | |||||||||||
Operating income | 390,884 | 394,649 | 425,653 | |||||||||||
Other income (expense) | ||||||||||||||
Interest expense | [1] | (109,994) | (105,918) | (108,313) | ||||||||||
Loss on debt amendments and refinancing | $ (1,484) | $ (331) | $ (190) | $ (161) | $ (249) | (1,484) | (521) | (13,445) | ||||||
Equity in income of affiliates | 39,242 | 35,985 | 31,962 | |||||||||||
Other income | (1,068) | 7,136 | 12,851 | |||||||||||
Total other expense | (77,639) | (46,911) | (62,289) | |||||||||||
Income before income taxes | 313,245 | 347,738 | 363,364 | |||||||||||
Income taxes | 96,032 | 80,256 | 104,851 | |||||||||||
Net income | 217,213 | 267,482 | 258,513 | |||||||||||
Less: Net income attributable to noncontrolling interests | 1,478 | 1,839 | 1,736 | |||||||||||
Net income attributable to Cinemark USA, Inc. | 215,735 | 265,643 | 256,777 | |||||||||||
Eliminations | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | (56,590) | (50,756) | (53,147) | |||||||||||
Cost of operations | ||||||||||||||
Theatre operating expenses | (56,590) | (50,756) | (53,147) | |||||||||||
General and administrative expenses | 0 | 0 | 0 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Impairment of long-lived assets | 0 | 0 | 0 | |||||||||||
Loss on disposal of assets and other | 0 | 0 | 0 | |||||||||||
Total cost of operations | (56,590) | (50,756) | (53,147) | |||||||||||
Operating income | 0 | 0 | 0 | |||||||||||
Other income (expense) | ||||||||||||||
Interest expense | 1,377 | 1,433 | 1,309 | |||||||||||
Loss on debt amendments and refinancing | 0 | 0 | 0 | |||||||||||
Equity in income of affiliates | (164,827) | (270,189) | (301,946) | |||||||||||
Other income | (1,377) | (1,433) | (1,309) | |||||||||||
Total other expense | (164,827) | (270,189) | (301,946) | |||||||||||
Income before income taxes | (164,827) | (270,189) | (301,946) | |||||||||||
Income taxes | 0 | 0 | 0 | |||||||||||
Net income | (164,827) | (270,189) | (301,946) | |||||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||
Net income attributable to Cinemark USA, Inc. | (164,827) | (270,189) | (301,946) | |||||||||||
NCM | ||||||||||||||
Other income (expense) | ||||||||||||||
Distributions from NCM | 15,389 | 16,407 | 14,656 | |||||||||||
Interest expense - NCM | (19,724) | |||||||||||||
NCM | Eliminations | ||||||||||||||
Other income (expense) | ||||||||||||||
Distributions from NCM | 0 | 0 | 0 | |||||||||||
Interest expense - NCM | 0 | |||||||||||||
Cinemark USA, Inc. | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | 1,192,478 | 1,013,960 | 1,014,713 | |||||||||||
Cost of operations | ||||||||||||||
Theatre operating expenses | 916,726 | 795,976 | 804,041 | |||||||||||
General and administrative expenses | 11,497 | 13,176 | 13,085 | |||||||||||
Depreciation and amortization | 89,429 | 79,676 | 70,654 | |||||||||||
Impairment of long-lived assets | 4,118 | 3,725 | 1,929 | |||||||||||
Loss on disposal of assets and other | 13,321 | 16,895 | 5,613 | |||||||||||
Total cost of operations | 1,035,091 | 909,448 | 895,322 | |||||||||||
Operating income | 157,387 | 104,512 | 119,391 | |||||||||||
Other income (expense) | ||||||||||||||
Interest expense | (97,585) | (94,229) | (96,442) | |||||||||||
Loss on debt amendments and refinancing | (1,484) | (521) | (13,445) | |||||||||||
Equity in income of affiliates | 183,463 | 255,594 | 245,010 | |||||||||||
Other income | 4,287 | 2,475 | 351 | |||||||||||
Total other expense | 68,957 | 163,319 | 136,888 | |||||||||||
Income before income taxes | 226,344 | 267,831 | 256,279 | |||||||||||
Income taxes | 10,608 | 2,188 | (498) | |||||||||||
Net income | 215,736 | 265,643 | 256,777 | |||||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||
Net income attributable to Cinemark USA, Inc. | 215,736 | 265,643 | 256,777 | |||||||||||
Cinemark USA, Inc. | NCM | ||||||||||||||
Other income (expense) | ||||||||||||||
Distributions from NCM | 0 | 0 | 1,414 | |||||||||||
Interest expense - NCM | (19,724) | |||||||||||||
Subsidiary Guarantors | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | 1,362,043 | 1,220,993 | 1,219,218 | |||||||||||
Cost of operations | ||||||||||||||
Theatre operating expenses | 933,858 | 834,135 | 828,905 | |||||||||||
General and administrative expenses | 100,407 | 82,955 | 84,453 | |||||||||||
Depreciation and amortization | 99,627 | 87,463 | 79,139 | |||||||||||
Impairment of long-lived assets | 13,612 | 1,502 | 0 | |||||||||||
Loss on disposal of assets and other | 23,337 | 3,372 | 13,759 | |||||||||||
Total cost of operations | 1,170,841 | 1,009,427 | 1,006,256 | |||||||||||
Operating income | 191,202 | 211,566 | 212,962 | |||||||||||
Other income (expense) | ||||||||||||||
Interest expense | (6,520) | (7,675) | (7,538) | |||||||||||
Loss on debt amendments and refinancing | 0 | 0 | 0 | |||||||||||
Equity in income of affiliates | (12,561) | 16,838 | 58,528 | |||||||||||
Other income | (14) | 1,040 | 19 | |||||||||||
Total other expense | (19,095) | 10,203 | 51,009 | |||||||||||
Income before income taxes | 172,107 | 221,769 | 263,971 | |||||||||||
Income taxes | 68,624 | 69,770 | 52,277 | |||||||||||
Net income | 103,483 | 151,999 | 211,694 | |||||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||
Net income attributable to Cinemark USA, Inc. | 103,483 | 151,999 | 211,694 | |||||||||||
Subsidiary Guarantors | NCM | ||||||||||||||
Other income (expense) | ||||||||||||||
Distributions from NCM | 0 | 0 | 0 | |||||||||||
Interest expense - NCM | 0 | |||||||||||||
Subsidiary Non-Guarantors | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | 723,804 | 807,350 | 737,981 | |||||||||||
Cost of operations | ||||||||||||||
Theatre operating expenses | 541,981 | 591,223 | 540,310 | |||||||||||
General and administrative expenses | 50,736 | 54,780 | 43,099 | |||||||||||
Depreciation and amortization | 72,106 | 70,374 | 59,278 | |||||||||||
Impairment of long-lived assets | 14,642 | 9,857 | 907 | |||||||||||
Loss on disposal of assets and other | 2,044 | 2,545 | 1,087 | |||||||||||
Total cost of operations | 681,509 | 728,779 | 644,681 | |||||||||||
Operating income | 42,295 | 78,571 | 93,300 | |||||||||||
Other income (expense) | ||||||||||||||
Interest expense | (7,266) | (5,447) | (5,642) | |||||||||||
Loss on debt amendments and refinancing | 0 | 0 | 0 | |||||||||||
Equity in income of affiliates | 33,167 | 33,742 | 30,370 | |||||||||||
Other income | (3,964) | 5,054 | 13,790 | |||||||||||
Total other expense | 37,326 | 49,756 | 51,760 | |||||||||||
Income before income taxes | 79,621 | 128,327 | 145,060 | |||||||||||
Income taxes | 16,800 | 8,298 | 53,072 | |||||||||||
Net income | 62,821 | 120,029 | 91,988 | |||||||||||
Less: Net income attributable to noncontrolling interests | 1,478 | 1,839 | 1,736 | |||||||||||
Net income attributable to Cinemark USA, Inc. | 61,343 | 118,190 | 90,252 | |||||||||||
Subsidiary Non-Guarantors | NCM | ||||||||||||||
Other income (expense) | ||||||||||||||
Distributions from NCM | 15,389 | $ 16,407 | $ 13,242 | |||||||||||
Interest expense - NCM | $ 0 | |||||||||||||
[1] | Includes amortization of debt issue costs. | |||||||||||||
[2] | Reflected as a loss on debt amendments and refinancing on the consolidated statement of income for the year in which the amendments were effective. |
Condensed Consolidating State_2
Condensed Consolidating Statement of Comprehensive Income Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Statement Of Income Captions [Line Items] | |||
Net income | $ 217,213 | $ 267,482 | $ 258,513 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of settlements, net of taxes | (3,851) | 0 | 234 |
Other comprehensive income (loss) in equity method investments | (139) | 248 | 89 |
Foreign currency translation adjustments | (62,253) | (4,966) | 26,394 |
Total other comprehensive income (loss), net of tax | (66,243) | (4,718) | 26,717 |
Total comprehensive income, net of tax | 150,970 | 262,764 | 285,230 |
Comprehensive income attributable to noncontrolling interests | (1,478) | (1,839) | (1,769) |
Comprehensive income attributable to Cinemark USA, Inc. | 149,492 | 260,925 | 283,461 |
Eliminations | |||
Condensed Statement Of Income Captions [Line Items] | |||
Net income | (164,827) | (270,189) | (301,946) |
Other comprehensive income (loss), net of tax | |||
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of settlements, net of taxes | 0 | 0 | |
Other comprehensive income (loss) in equity method investments | 139 | (248) | (89) |
Foreign currency translation adjustments | 62,253 | 4,966 | (26,361) |
Total other comprehensive income (loss), net of tax | 62,392 | 4,718 | (26,450) |
Total comprehensive income, net of tax | (102,435) | (265,471) | (328,396) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Cinemark USA, Inc. | (102,435) | (265,471) | (328,396) |
Cinemark USA, Inc. | |||
Condensed Statement Of Income Captions [Line Items] | |||
Net income | 215,736 | 265,643 | 256,777 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of settlements, net of taxes | (3,851) | 234 | |
Other comprehensive income (loss) in equity method investments | (139) | 248 | 89 |
Foreign currency translation adjustments | (62,253) | (4,966) | 26,361 |
Total other comprehensive income (loss), net of tax | (66,243) | (4,718) | 26,684 |
Total comprehensive income, net of tax | 149,493 | 260,925 | 283,461 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Cinemark USA, Inc. | 149,493 | 260,925 | 283,461 |
Subsidiary Guarantors | |||
Condensed Statement Of Income Captions [Line Items] | |||
Net income | 103,483 | 151,999 | 211,694 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of settlements, net of taxes | 0 | 0 | |
Other comprehensive income (loss) in equity method investments | 0 | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 |
Total comprehensive income, net of tax | 103,483 | 151,999 | 211,694 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Cinemark USA, Inc. | 103,483 | 151,999 | 211,694 |
Subsidiary Non-Guarantors | |||
Condensed Statement Of Income Captions [Line Items] | |||
Net income | 62,821 | 120,029 | 91,988 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of settlements, net of taxes | 0 | 0 | |
Other comprehensive income (loss) in equity method investments | (139) | 248 | 89 |
Foreign currency translation adjustments | (62,253) | (4,966) | 26,394 |
Total other comprehensive income (loss), net of tax | (62,392) | (4,718) | 26,483 |
Total comprehensive income, net of tax | 429 | 115,311 | 118,471 |
Comprehensive income attributable to noncontrolling interests | (1,478) | (1,839) | (1,769) |
Comprehensive income attributable to Cinemark USA, Inc. | $ (1,049) | $ 113,472 | $ 116,702 |
Condensed Consolidating State_3
Condensed Consolidating Statement of Comprehensive Income Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Information Of Subsidiaries Disclosure [Abstract] | |||
Unrealized gain due to fair value adjustments on interest rate swap agreements, taxes | $ 1,243 | $ 0 | $ 138 |
Condensed Consolidating State_4
Condensed Consolidating Statement of Cash Flows Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 217,213 | $ 267,482 | $ 258,513 |
Adjustments to reconcile net income to cash provided by operating activities | 346,659 | 252,168 | 232,308 |
Changes in assets and liabilities | (7,573) | 8,734 | (28,562) |
Net cash provided by operating activities | 556,299 | 528,384 | 462,259 |
Investing activities | |||
Additions to theatre properties and equipment | (346,073) | (380,862) | (326,908) |
Acquisition of theatres in the U.S. and international markets, net of cash acquired | (11,289) | (40,997) | (15,300) |
Acquisition of screen advertising business | (1,450) | ||
Proceeds from sale of theatre properties and equipment and other | 3,920 | 15,098 | 3,570 |
Proceeds from intercompany note repayments | 0 | ||
Proceeds from sale of marketable securities | 13,451 | ||
Intercompany note issuances | 0 | ||
Dividends received from subsidiaries | 0 | 0 | |
Investment in joint ventures and other | (19,535) | (3,715) | (1,132) |
Net cash used for investing activities | (451,370) | (410,476) | (327,769) |
Financing activities | |||
Dividends paid to parent | (148,750) | (134,500) | (124,900) |
Proceeds from issuance of Senior Notes, net of discount | 222,750 | ||
Retirement of Senior Subordinated Notes | (200,000) | ||
Repayments of long-term debt | (7,984) | (5,671) | (16,605) |
Payment of debt issue costs | (5,218) | (1,146) | (7,217) |
Fees paid related to debt amendments | (704) | (521) | (11,076) |
Intercompany loan proceeds | 0 | ||
Payments on capital leases | (25,353) | (21,725) | (19,343) |
Proceeds from financing lease | 10,200 | ||
Payments on intercompany loans | 0 | ||
Other | (4,601) | (5,212) | (6,730) |
Net cash used for financing activities | (191,906) | (157,429) | (163,121) |
Effect of exchange rate changes on cash and cash equivalents | (9,222) | 798 | 1,266 |
Increase (decrease) in cash and cash equivalents | (96,199) | (38,723) | (27,365) |
Cash and cash equivalents: | |||
Beginning of period | 522,415 | 561,138 | 588,503 |
End of period | 426,216 | 522,415 | 561,138 |
Eliminations | |||
Operating activities | |||
Net income | (164,827) | (270,189) | (301,946) |
Adjustments to reconcile net income to cash provided by operating activities | 164,827 | 270,189 | 301,946 |
Changes in assets and liabilities | 0 | 0 | 0 |
Net cash provided by operating activities | 0 | 0 | 0 |
Investing activities | |||
Additions to theatre properties and equipment | 0 | 0 | 0 |
Acquisition of theatres in the U.S. and international markets, net of cash acquired | 0 | 0 | 0 |
Acquisition of screen advertising business | 0 | ||
Proceeds from sale of theatre properties and equipment and other | 0 | 0 | 0 |
Proceeds from intercompany note repayments | (1,867) | ||
Proceeds from sale of marketable securities | 0 | ||
Intercompany note issuances | 4,455 | ||
Dividends received from subsidiaries | (129,473) | (255,682) | |
Investment in joint ventures and other | 0 | 0 | 0 |
Net cash used for investing activities | (1,867) | (129,473) | (251,227) |
Financing activities | |||
Dividends paid to parent | 0 | 129,473 | 255,682 |
Proceeds from issuance of Senior Notes, net of discount | 0 | ||
Retirement of Senior Subordinated Notes | 0 | ||
Repayments of long-term debt | 0 | 0 | 0 |
Payment of debt issue costs | 0 | 0 | |
Fees paid related to debt amendments | 0 | 0 | |
Intercompany loan proceeds | (4,455) | ||
Payments on capital leases | 0 | 0 | 0 |
Proceeds from financing lease | 0 | ||
Payments on intercompany loans | 1,867 | ||
Other | 0 | 0 | 0 |
Net cash used for financing activities | 1,867 | 129,473 | 251,227 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents: | |||
Beginning of period | 0 | 0 | 0 |
End of period | 0 | 0 | 0 |
NCM | |||
Investing activities | |||
Acquisition of NCM common units | (78,393) | ||
NCM | Eliminations | |||
Investing activities | |||
Acquisition of NCM common units | 0 | ||
Cinemark USA, Inc. | |||
Operating activities | |||
Net income | 215,736 | 265,643 | 256,777 |
Adjustments to reconcile net income to cash provided by operating activities | (36,894) | (122,559) | (178,147) |
Changes in assets and liabilities | 229,325 | 18,223 | 154,085 |
Net cash provided by operating activities | 408,167 | 161,307 | 232,715 |
Investing activities | |||
Additions to theatre properties and equipment | (91,244) | (146,385) | (108,439) |
Acquisition of theatres in the U.S. and international markets, net of cash acquired | 0 | (12,500) | (15,300) |
Acquisition of screen advertising business | 0 | ||
Proceeds from sale of theatre properties and equipment and other | 1,244 | 2,149 | 2,912 |
Proceeds from intercompany note repayments | 1,867 | ||
Proceeds from sale of marketable securities | 13,451 | ||
Intercompany note issuances | (4,455) | ||
Dividends received from subsidiaries | 127,600 | 26,033 | |
Investment in joint ventures and other | 0 | 0 | (1,000) |
Net cash used for investing activities | (166,526) | (29,136) | (86,798) |
Financing activities | |||
Dividends paid to parent | (148,750) | (134,500) | (124,900) |
Proceeds from issuance of Senior Notes, net of discount | 222,750 | ||
Retirement of Senior Subordinated Notes | (200,000) | ||
Repayments of long-term debt | (7,984) | (4,282) | (15,201) |
Payment of debt issue costs | (5,218) | (7,217) | |
Fees paid related to debt amendments | (521) | (11,076) | |
Intercompany loan proceeds | 0 | ||
Payments on capital leases | (11,610) | (7,952) | (6,645) |
Proceeds from financing lease | 0 | ||
Payments on intercompany loans | 0 | ||
Other | (704) | (1,181) | 1,863 |
Net cash used for financing activities | (174,266) | (148,436) | (140,426) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 67,375 | (16,265) | 5,491 |
Cash and cash equivalents: | |||
Beginning of period | 130,590 | 146,855 | 141,364 |
End of period | 197,965 | 130,590 | 146,855 |
Cinemark USA, Inc. | NCM | |||
Investing activities | |||
Acquisition of NCM common units | (78,393) | ||
Subsidiary Guarantors | |||
Operating activities | |||
Net income | 103,483 | 151,999 | 211,694 |
Adjustments to reconcile net income to cash provided by operating activities | 162,811 | 71,023 | 55,128 |
Changes in assets and liabilities | (233,263) | (35,138) | (164,005) |
Net cash provided by operating activities | 33,031 | 187,884 | 102,817 |
Investing activities | |||
Additions to theatre properties and equipment | (173,042) | (172,874) | (130,843) |
Acquisition of theatres in the U.S. and international markets, net of cash acquired | 0 | 0 | 0 |
Acquisition of screen advertising business | 0 | ||
Proceeds from sale of theatre properties and equipment and other | 2,025 | 12,271 | 374 |
Proceeds from intercompany note repayments | 0 | ||
Proceeds from sale of marketable securities | 0 | ||
Intercompany note issuances | 0 | ||
Dividends received from subsidiaries | 1,873 | 229,649 | |
Investment in joint ventures and other | (19,896) | (104) | 0 |
Net cash used for investing activities | (190,913) | (158,834) | 99,180 |
Financing activities | |||
Dividends paid to parent | 0 | (127,000) | 0 |
Proceeds from issuance of Senior Notes, net of discount | 0 | ||
Retirement of Senior Subordinated Notes | 0 | ||
Repayments of long-term debt | 0 | 0 | 0 |
Payment of debt issue costs | 0 | 0 | |
Fees paid related to debt amendments | 0 | 0 | |
Intercompany loan proceeds | 0 | ||
Payments on capital leases | (8,950) | (9,707) | (10,005) |
Proceeds from financing lease | 10,200 | ||
Payments on intercompany loans | 0 | ||
Other | (2,905) | (2,943) | (6,834) |
Net cash used for financing activities | (11,855) | (129,450) | (16,839) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | (169,737) | (100,400) | 185,158 |
Cash and cash equivalents: | |||
Beginning of period | 180,623 | 281,023 | 95,865 |
End of period | 10,886 | 180,623 | 281,023 |
Subsidiary Guarantors | NCM | |||
Investing activities | |||
Acquisition of NCM common units | 0 | ||
Subsidiary Non-Guarantors | |||
Operating activities | |||
Net income | 62,821 | 120,029 | 91,988 |
Adjustments to reconcile net income to cash provided by operating activities | 55,915 | 33,515 | 53,381 |
Changes in assets and liabilities | (3,635) | 25,649 | (18,642) |
Net cash provided by operating activities | 115,101 | 179,193 | 126,727 |
Investing activities | |||
Additions to theatre properties and equipment | (81,787) | (61,603) | (87,626) |
Acquisition of theatres in the U.S. and international markets, net of cash acquired | (11,289) | (28,497) | 0 |
Acquisition of screen advertising business | (1,450) | ||
Proceeds from sale of theatre properties and equipment and other | 651 | 678 | 284 |
Proceeds from intercompany note repayments | 0 | ||
Proceeds from sale of marketable securities | 0 | ||
Intercompany note issuances | 0 | ||
Dividends received from subsidiaries | 0 | 0 | |
Investment in joint ventures and other | 361 | (3,611) | (132) |
Net cash used for investing activities | (92,064) | (93,033) | (88,924) |
Financing activities | |||
Dividends paid to parent | 0 | (2,473) | (255,682) |
Proceeds from issuance of Senior Notes, net of discount | 0 | ||
Retirement of Senior Subordinated Notes | 0 | ||
Repayments of long-term debt | 0 | (1,389) | (1,404) |
Payment of debt issue costs | 0 | 0 | |
Fees paid related to debt amendments | 0 | 0 | |
Intercompany loan proceeds | 4,455 | ||
Payments on capital leases | (4,793) | (4,066) | (2,693) |
Proceeds from financing lease | 0 | ||
Payments on intercompany loans | (1,867) | ||
Other | (992) | (1,088) | (1,759) |
Net cash used for financing activities | (7,652) | (9,016) | (257,083) |
Effect of exchange rate changes on cash and cash equivalents | (9,222) | 798 | 1,266 |
Increase (decrease) in cash and cash equivalents | 6,163 | 77,942 | (218,014) |
Cash and cash equivalents: | |||
Beginning of period | 211,202 | 133,260 | 351,274 |
End of period | 217,365 | $ 211,202 | $ 133,260 |
Subsidiary Non-Guarantors | NCM | |||
Investing activities | |||
Acquisition of NCM common units | $ 0 |
Supplemental Schedules - Conden
Supplemental Schedules - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets | |||||
Cash and cash equivalents | $ 426,216 | $ 522,415 | |||
Other current assets | 152,327 | ||||
Total current assets | 578,543 | 672,017 | |||
Theatre properties and equipment, net | 1,833,133 | 1,828,054 | |||
Other assets | 2,089,675 | 1,985,269 | |||
Total assets | 4,501,351 | 4,485,340 | |||
Current liabilities | |||||
Current portion of long-term debt | 7,984 | 7,099 | |||
Current portion of capital lease obligations | 27,065 | [1] | 25,511 | ||
Accounts payable and accrued expenses | 439,004 | ||||
Total current liabilities | 474,053 | 468,286 | |||
Long-term liabilities | |||||
Long-term debt, less current portion | 1,772,627 | 1,780,381 | |||
Capital lease obligations, less current portion | 232,467 | [1] | 251,151 | ||
Other long-term liabilities and deferrals | 545,021 | 564,027 | |||
Total long-term liabilities | 2,550,115 | 2,595,559 | |||
Commitments and contingencies | |||||
Equity | 1,477,183 | 1,421,495 | $ 1,284,080 | $ 1,113,251 | |
Total liabilities and equity | 4,501,351 | $ 4,485,340 | |||
Restricted Subsidiaries | |||||
Current assets | |||||
Cash and cash equivalents | 370,460 | ||||
Other current assets | 267,077 | ||||
Total current assets | 637,537 | ||||
Theatre properties and equipment, net | 1,833,133 | ||||
Other assets | 1,916,169 | ||||
Total assets | 4,386,839 | ||||
Current liabilities | |||||
Current portion of long-term debt | 6,595 | ||||
Current portion of capital lease obligations | 27,065 | ||||
Accounts payable and accrued expenses | 447,610 | ||||
Total current liabilities | 481,270 | ||||
Long-term liabilities | |||||
Long-term debt, less current portion | 2,014,327 | ||||
Capital lease obligations, less current portion | 232,467 | ||||
Other long-term liabilities and deferrals | 484,528 | ||||
Total long-term liabilities | 2,731,322 | ||||
Commitments and contingencies | |||||
Equity | 1,174,247 | ||||
Total liabilities and equity | 4,386,839 | ||||
Unrestricted Subsidiaries | |||||
Current assets | |||||
Cash and cash equivalents | 55,756 | ||||
Other current assets | (106,143) | ||||
Total current assets | (50,387) | ||||
Other assets | 522,225 | ||||
Total assets | 471,838 | ||||
Current liabilities | |||||
Current portion of long-term debt | 1,389 | ||||
Accounts payable and accrued expenses | 1 | ||||
Total current liabilities | 1,390 | ||||
Long-term liabilities | |||||
Other long-term liabilities and deferrals | 60,493 | ||||
Total long-term liabilities | 60,493 | ||||
Commitments and contingencies | |||||
Equity | 409,955 | ||||
Total liabilities and equity | 471,838 | ||||
Eliminations | |||||
Current assets | |||||
Other current assets | (8,607) | ||||
Total current assets | (8,607) | ||||
Other assets | (348,719) | ||||
Total assets | (357,326) | ||||
Current liabilities | |||||
Accounts payable and accrued expenses | (8,607) | ||||
Total current liabilities | (8,607) | ||||
Long-term liabilities | |||||
Long-term debt, less current portion | (241,700) | ||||
Total long-term liabilities | (241,700) | ||||
Commitments and contingencies | |||||
Equity | (107,019) | ||||
Total liabilities and equity | $ (357,326) | ||||
[1] | Represents amounts before the adoption of ASC Topic 842 – Leases. See Note 2 for discussion of the expected impact of adoption. |
Supplemental Schedules - Cond_2
Supplemental Schedules - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | $ 3,221,735 | $ 2,991,547 | $ 2,918,765 |
Cost of operations | |||
Theatre operating costs | 2,335,975 | 2,170,578 | 2,120,109 |
General and administrative expenses | 162,640 | ||
Depreciation and amortization | 261,162 | 237,513 | 209,071 |
Impairment of long-lived assets | 32,372 | ||
Loss on sale of assets and other | 38,702 | 22,812 | 20,459 |
Total cost of operations | 2,830,851 | 2,596,898 | 2,493,112 |
Operating income | 390,884 | 394,649 | 425,653 |
Other income (expense) | (77,639) | (46,911) | (62,289) |
Income before income taxes | 313,245 | 347,738 | 363,364 |
Income taxes | 96,032 | 80,256 | 104,851 |
Net income | 217,213 | 267,482 | 258,513 |
Less: Net income attributable to noncontrolling interests | 1,478 | 1,839 | 1,736 |
Net income attributable to Cinemark USA, Inc. | 215,735 | $ 265,643 | $ 256,777 |
Restricted Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 3,221,735 | ||
Cost of operations | |||
Theatre operating costs | 2,335,975 | ||
General and administrative expenses | 162,645 | ||
Depreciation and amortization | 261,162 | ||
Impairment of long-lived assets | 32,372 | ||
Loss on sale of assets and other | 38,702 | ||
Total cost of operations | 2,830,856 | ||
Operating income | 390,879 | ||
Other income (expense) | (154,545) | ||
Income before income taxes | 236,334 | ||
Income taxes | 72,086 | ||
Net income | 164,248 | ||
Less: Net income attributable to noncontrolling interests | 1,478 | ||
Net income attributable to Cinemark USA, Inc. | 162,770 | ||
Unrestricted | |||
Cost of operations | |||
General and administrative expenses | (5) | ||
Total cost of operations | (5) | ||
Operating income | 5 | ||
Other income (expense) | 76,906 | ||
Income before income taxes | 76,911 | ||
Income taxes | 23,946 | ||
Net income | 52,965 | ||
Net income attributable to Cinemark USA, Inc. | $ 52,965 |
Supplemental Schedules - Cond_3
Supplemental Schedules - Condensed Consolidating of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 217,213 | $ 267,482 | $ 258,513 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) due to fair value adjustments on interest rate swap agreements, net of taxes of $138, $0 and $1,243, net of settlements | (3,851) | 0 | 234 |
Other comprehensive loss in equity method investments | (139) | 248 | 89 |
Foreign currency translation adjustments | (62,253) | ||
Total other comprehensive income (loss), net of tax | (66,243) | (4,718) | 26,717 |
Total comprehensive income, net of tax | 150,970 | 262,764 | 285,230 |
Comprehensive income attributable to noncontrolling interests | (1,478) | (1,839) | (1,769) |
Comprehensive income attributable to Cinemark USA, Inc. | 149,492 | $ 260,925 | $ 283,461 |
Restricted Subsidiaries | |||
Net income | 164,248 | ||
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) due to fair value adjustments on interest rate swap agreements, net of taxes of $138, $0 and $1,243, net of settlements | (3,851) | ||
Foreign currency translation adjustments | (62,253) | ||
Total other comprehensive income (loss), net of tax | (66,104) | ||
Total comprehensive income, net of tax | 98,144 | ||
Comprehensive income attributable to noncontrolling interests | (1,478) | ||
Comprehensive income attributable to Cinemark USA, Inc. | 96,666 | ||
Unrestricted Subsidiaries | |||
Net income | 52,965 | ||
Other comprehensive income (loss), net of tax | |||
Other comprehensive loss in equity method investments | (139) | ||
Total other comprehensive income (loss), net of tax | (139) | ||
Total comprehensive income, net of tax | 52,826 | ||
Comprehensive income attributable to Cinemark USA, Inc. | $ 52,826 |
Supplemental Schedules - Cond_4
Supplemental Schedules - Condensed Consolidating of Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||
Unrealized gain due to fair value adjustments on interest rate swap agreements, taxes | $ 1,243 | $ 0 | $ 138 |
Supplemental Schedules - Cond_5
Supplemental Schedules - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 217,213 | $ 267,482 | $ 258,513 |
Adjustments to reconcile net income to cash provided by operating activities | 346,659 | 252,168 | 232,308 |
Changes in assets and liabilities | (7,573) | 8,734 | (28,562) |
Net cash provided by operating activities | 556,299 | 528,384 | 462,259 |
Investing activities | |||
Additions to theatre properties and equipment and other | (346,073) | (380,862) | (326,908) |
Proceeds from sale of theatre properties and equipment and other | 3,920 | 15,098 | 3,570 |
Acquisition of theatres in the U.S. and international markets, net of cash acquired | (11,289) | (40,997) | (15,300) |
Investment in joint ventures and other | (19,535) | (3,715) | (1,132) |
Net cash used for investing activities | (451,370) | (410,476) | (327,769) |
Financing activities | |||
Dividends paid to parent | (148,750) | (134,500) | (124,900) |
Repayments on long-term debt | (7,984) | (5,671) | (16,605) |
Payment of debt issue costs | (5,218) | (1,146) | (7,217) |
Payments on capital leases | (25,353) | (21,725) | (19,343) |
Other | (4,601) | ||
Net cash used for financing activities | (191,906) | (157,429) | (163,121) |
Effect of exchange rate changes on cash and cash equivalents | (9,222) | 798 | 1,266 |
Increase (decrease) in cash and cash equivalents | (96,199) | (38,723) | (27,365) |
Cash and cash equivalents: | |||
Beginning of period | 522,415 | 561,138 | 588,503 |
End of period | 426,216 | 522,415 | $ 561,138 |
Restricted Subsidiaries | |||
Operating activities | |||
Net income | 164,248 | ||
Adjustments to reconcile net income to cash provided by operating activities | 343,793 | ||
Changes in assets and liabilities | 32,060 | ||
Net cash provided by operating activities | 540,101 | ||
Investing activities | |||
Additions to theatre properties and equipment and other | (346,073) | ||
Proceeds from sale of theatre properties and equipment and other | 3,920 | ||
Acquisition of theatres in the U.S. and international markets, net of cash acquired | (11,289) | ||
Investment in joint ventures and other | (19,896) | ||
Net cash used for investing activities | (451,731) | ||
Financing activities | |||
Dividends paid to parent | (148,750) | ||
Borrowings from affiliate | 21,700 | ||
Repayments on long-term debt | (7,984) | ||
Payment of debt issue costs | (5,218) | ||
Payments on capital leases | (25,353) | ||
Other | (4,601) | ||
Net cash used for financing activities | (170,206) | ||
Effect of exchange rate changes on cash and cash equivalents | (9,222) | ||
Increase (decrease) in cash and cash equivalents | (91,058) | ||
Cash and cash equivalents: | |||
Beginning of period | 461,518 | ||
End of period | 370,460 | 461,518 | |
Unrestricted Subsidiaries | |||
Operating activities | |||
Net income | 52,965 | ||
Adjustments to reconcile net income to cash provided by operating activities | 2,866 | ||
Changes in assets and liabilities | (39,633) | ||
Net cash provided by operating activities | 16,198 | ||
Investing activities | |||
Loans to affiliates | (21,700) | ||
Investment in joint ventures and other | 361 | ||
Net cash used for investing activities | (21,339) | ||
Financing activities | |||
Increase (decrease) in cash and cash equivalents | (5,141) | ||
Cash and cash equivalents: | |||
Beginning of period | 60,897 | ||
End of period | 55,756 | $ 60,897 | |
NCM | |||
Investing activities | |||
Acquisition of NCM common units | (78,393) | ||
NCM | Restricted Subsidiaries | |||
Investing activities | |||
Acquisition of NCM common units | (78,393) | ||
Eliminations | |||
Investing activities | |||
Loans to affiliates | 21,700 | ||
Net cash used for investing activities | 21,700 | ||
Financing activities | |||
Borrowings from affiliate | (21,700) | ||
Net cash used for financing activities | $ (21,700) |