Quarterly report pursuant to Section 13 or 15(d)

Impairment of Long-Lived Assets

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Impairment of Long-Lived Assets
9 Months Ended
Sep. 30, 2019
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract]  
Impairment of Long-Lived Assets

12.

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 discussion of the Company’s long-lived asset impairment evaluation process in Note 1 to the Company’s financial statements as included in its 2018 Annual Report on Form 10-K.  As noted in the discussion, fair value is determined based on a multiple of cash flows, which was six and a half times for the evaluations performed during the nine months ended September 30, 2019 and 2018. As of September 30, 2019, the estimated aggregate fair value of the long-lived assets impaired during the nine months ended September 30, 2019 was $27,383.

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.

Below is a summary of impairment charges for the periods presented:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

U.S. theatre properties and equipment

 

$

24,502

 

 

$

1,553

 

 

$

26,754

 

 

$

3,331

 

U.S. operating lease right-of-use assets

 

 

2,157

 

 

 

 

 

 

10,204

 

 

 

 

International theatre properties and equipment

 

 

645

 

 

 

88

 

 

 

6,796

 

 

 

1,689

 

International operating lease right-of-use assets

 

 

 

 

 

 

 

 

1,628

 

 

 

 

Total

 

$

27,304

 

 

$

1,641

 

 

$

45,382

 

 

$

5,020