Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.7.0.1
Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

9.

Goodwill and Other Intangible Assets

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

 

Acquisitions of theatres (2)

 

 

9,180

 

 

 

22,380

 

 

 

31,560

 

Foreign currency translation adjustments

 

 

 

 

 

(1,596

)

 

 

(1,596

)

Balance at June 30, 2017 (1)

 

$

1,173,343

 

 

$

119,584

 

 

$

1,292,927

 

 

(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 preliminary allocations associated with theacquisitions of theatres.

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 six months ended June 30, 2017 that indicated the carrying value of goodwill might exceed its estimated fair value.

Intangible assets consisted of the following:

 

 

 

Balance at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

 

 

January 1,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

 

2017

 

 

Additions (1)

 

 

Amortization

 

 

Other (2)

 

 

2017

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

$

99,796

 

 

$

2,620

 

 

$

 

 

$

(1,282

)

 

$

101,134

 

Accumulated amortization

 

 

(64,606

)

 

 

 

 

(2,408

)

 

 

1,162

 

 

 

(65,852

)

Total net intangible assets with finite lives

 

$

35,190

 

 

$

2,620

 

 

$

(2,408

)

 

$

(120

)

 

$

35,282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets with indefinite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tradename

 

 

299,709

 

 

 

 

 

 

20

 

 

 

299,729

 

Total intangible assets — net

 

$

334,899

 

 

$

2,620

 

 

$

(2,408

)

 

$

(100

)

 

$

335,011

 

 

 

(1)

Amount represents preliminary fair values allocated to intangible assets acquired as part of the acquisitions of theatres.

 

(2)

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 six months ended June 30, 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 six months ended December 31, 2017

 

$

2,796

 

For the twelve months ended December 31, 2018

 

 

5,709

 

For the twelve months ended December 31, 2019

 

 

4,846

 

For the twelve months ended December 31, 2020

 

 

4,740

 

For the twelve months ended December 31, 2021

 

 

2,189

 

Thereafter

 

 

15,002

 

Total

 

$

35,282