Annual report pursuant to Section 13 and 15(d)

INVESTMENT IN NATIONAL CINEMEDIA LLC (Tables)

v3.19.3.a.u2
INVESTMENT IN NATIONAL CINEMEDIA LLC (Tables)
12 Months Ended
Dec. 31, 2019
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, 2019 and when the Company expects to recognize this revenue.

 

 

Twelve Months Ended December 31,

 

 

 

 

 

 

 

 

 

Remaining Performance Obligations

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Thereafter

 

 

Total

 

Deferred revenue - other

 

$

125,334

 

 

 

12,897

 

 

 

195

 

 

 

 

 

 

 

 

 

 

 

$

138,426

 

NCM Screen Advertising Advances  
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized

The recognition of revenue related to the deferred revenue or NCM screen advertising advances will continue to be recorded on a straight-line basis over the new term of the amended ESA or February 2041.

 

 

Twelve Months Ended December 31,

 

 

 

 

 

 

 

 

 

Remaining Maturity

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Thereafter

 

 

Total

 

NCM screen advertising advances (1)

 

$

7,669

 

 

 

8,197

 

 

 

8,762

 

 

 

9,368

 

 

 

10,016

 

 

 

304,342

 

 

$

348,354

 

NCM  
Summary of Activity With Equity Investee Included in the Company's Consolidated Financial Statements

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 4 for discussion of the impact of the new revenue recognition accounting pronouncement.

 

 

Investment in NCM

 

 

NCM Screen Advertising Advances

 

 

Distributions from NCM

 

 

Equity

in Earnings

 

 

Other Revenue

 

 

Interest Expense

- NCM (3)

 

 

Cash Received

 

Balance as of January 1, 2017

 

$

189,995

 

 

$

(343,928

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 screen advertising advances

 

 

 

 

 

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)

 

 

 

 

 

(9,288

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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) (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 screen advertising advances

 

 

 

 

 

15,764

 

 

 

 

 

 

 

 

 

(15,764

)

 

 

 

 

 

 

Balance as of and for the twelve months ended December 31, 2018

 

$

275,592

 

 

$

(350,242

)

 

$

(15,389

)

 

$

(13,842

)

 

$

(47,631

)

 

$

19,724

 

 

$

49,737

 

Receipt of common units due to annual common unit adjustment

 

 

1,552

 

 

 

(1,552

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues earned under ESA (1) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,782

)

 

 

 

 

 

13,782

 

Interest accrued related to significant financing component (2)

 

 

 

 

 

(28,624

)

 

 

 

 

 

 

 

 

 

 

 

28,624

 

 

 

 

Receipt of excess cash distributions

 

 

(23,452

)

 

 

 

 

 

(11,631

)

 

 

 

 

 

 

 

 

 

 

 

35,083

 

Receipt under tax receivable agreement

 

 

(2,492

)

 

 

 

 

 

(1,242

)

 

 

 

 

 

 

 

 

 

 

 

3,734

 

Equity in earnings

 

 

14,592

 

 

 

 

 

 

 

 

 

(14,592

)

 

 

 

 

 

 

 

 

 

Amortization of screen advertising advances (2)

 

 

 

 

 

32,064

 

 

 

 

 

 

 

 

 

(32,064

)

 

 

 

 

 

 

Balance as of and for the twelve months ended December 31, 2019

 

$

265,792

 

 

$

(348,354

)

 

$

(12,873

)

 

$

(14,592

)

 

$

(45,846

)

 

$

28,624

 

 

$

52,599

 

 

(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 $11,110, $11,965 and $11,478 for the years ended December 31, 2017, 2018 and 2019, 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.  In addition, the Company determined that a significant financing component existed for the ESA.  See Note 4 for further discussion of the impact of the adoption of ASC Topic 606.

(3)

Approximately $4,828 represents screen rental revenues earned under the amendment to the ESA.  See Note 4.

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, 2017, 2018 and 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Event

 

Date Common Units Received

 

Number of Common Units Received

 

 

Fair Value of Common Units Received

 

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

 

2019 annual common unit adjustment

 

3/31/2019

 

 

219,056

 

 

$

1,552

 

Summary Financial Information

The tables below present summary financial information for NCM for the periods indicated:

 

 

 

Year Ended

 

 

Year Ended

 

 

Year Ended

 

 

 

December 28, 2017

 

 

December 27, 2018

 

 

December 26, 2019

 

Revenues

 

$

426,100

 

 

$

441,400

 

 

$

444,800

 

Operating income

 

$

153,900

 

 

$

154,300

 

 

$

155,700

 

Net income

 

$

101,900

 

 

$

98,400

 

 

$

98,800

 

 

 

As of

 

 

As of

 

 

 

December 27, 2018

 

 

December 26, 2019

 

Current assets

 

$

172,700

 

 

$

185,400

 

Noncurrent assets

 

$

726,800

 

 

$

706,600

 

Current liabilities

 

$

115,200

 

 

$

125,500

 

Noncurrent liabilities

 

$

924,900

 

 

$

947,800

 

Members' deficit

 

$

(140,600

)

 

$

(181,300

)