Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets - Net

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Goodwill and Other Intangible Assets - Net
3 Months Ended
Mar. 31, 2017
Goodwill and Other Intangible Assets - Net
8. Goodwill and Other Intangible Assets - Net

The Company’s goodwill was as follows:

 

     U.S.
Operating
Segment
     International
Operating
Segment
     Total  

Balance at January 1, 2017 (1)

   $ 1,164,163      $ 98,800      $ 1,262,963  

Foreign currency translation adjustments

     —          2,790        2,790  
  

 

 

    

 

 

    

 

 

 

Balance at March 31, 2017 (1)

   $ 1,164,163      $ 101,590      $ 1,265,753  
  

 

 

    

 

 

    

 

 

 

 

(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.

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 has 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 nineteen regions in the U.S. and seven countries internationally 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).

For the year ended December 31, 2016, the Company performed a qualitative goodwill impairment assessment on all reporting units, in accordance with ASC Topic 350-20-35. No events or changes in circumstances occurred during the three months ended March 31, 2017 that indicated the carrying value of goodwill might exceed its estimated fair value.

Intangible assets consisted of the following:

 

     Balance at
January 1,

2017
     Amortization      Other (1)      Balance at
March 31,

2017
 
           

Intangible assets with finite lives:

           

Gross carrying amount

   $ 99,796      $ —        $ (1,123    $ 98,673  

Accumulated amortization

     (64,606      (1,216      1,162        (64,660
  

 

 

    

 

 

    

 

 

    

 

 

 

Total net intangible assets with finite lives

   $ 35,190        (1,216      39      $ 34,013  

Intangible assets with indefinite lives:

           

Tradename

     299,709        —          122        299,831  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total intangible assets — net

   $ 334,899      $ (1,216    $ 161      $ 333,844  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Amounts represent foreign currency translation adjustments and write-off of a fully amortized favorable lease associated with a closed domestic theatre.

For the year ended December 31, 2016, the Company performed a qualitative assessment for all indefinite-lived tradename assets other than its tradename in Ecuador, for which the Company performed a quantitative assessment. For the year ended December 31, 2016, the Company also performed a quantitative test on its definite-lived tradename associated with the Rave theatres acquired in 2013. No events or changes in circumstances occurred during the three months ended March 31, 2017 that indicated the carrying value of indefinite-lived tradename assets might exceed their estimated fair values.

 

Estimated aggregate future amortization expense for intangible assets is as follows:

 

For the nine months ended December 31, 2017

   $ 3,710  

For the twelve months ended December 31, 2018

     4,835  

For the twelve months ended December 31, 2019

     3,973  

For the twelve months ended December 31, 2020

     4,304  

For the twelve months ended December 31, 2021

     2,189  

Thereafter

     15,002  
  

 

 

 

Total

   $ 34,013