Annual report pursuant to Section 13 and 15(d)

Investment in National CineMedia LLC (Tables)

v3.10.0.1
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

)