Cinemark Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets - Net

Goodwill and Other Intangible Assets - Net

12 Months Ended

Dec. 31, 2011

Impairment of Long-Lived Assets [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS - NET

10. GOODWILL AND OTHER INTANGIBLE ASSETS — NET

The Company’s goodwill was as follows:


	U.S. Operating Segment		International Operating Segment			Total
Balance January 1, 2010 ⁽¹⁾	$	948,026	$	168,276		$	1,116,302
Foreign currency translation adjustments		—		6,669			6,669

Balance at December 31, 2010 ⁽¹⁾	$	948,026	$	174,945		$	1,122,971
Acquisition of ten theatres in Argentina (see Note 5)		—		43,018			43,018
Foreign currency translation adjustments		—		(15,352	)		(15,352	)

Balance at December 31, 2011 ⁽¹⁾	$	948,026	$	202,611		$	1,150,637

⁽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.

As of December 31, intangible assets-net, consisted of the following:


	January 1, 2010			Amortization			Other ⁽¹⁾			December 31, 2010
Intangible assets with finite lives:
Gross carrying amount	$	82,984		$	—		$	(18,665	)	$	64,319
Accumulated amortization		(50,466	)		(5,126	)		9,407			(46,185	)

Total net intangible assets with finite lives		32,518			(5,126	)		(9,258	)		18,134
Intangible assets with indefinite lives:
Tradename		310,480			—			590			311,070

Total intangible assets — net	$	342,998		$	(5,126	)	$	(8,668	)	$	329,204


	December 31, 2010			Additions ⁽²⁾		Amortization			Other ⁽¹⁾			December 31, 2011
Intangible assets with finite lives:
Gross carrying amount	$	64,319		$	14,835	$	—		$	(4,773	)	$	74,381
Accumulated amortization		(46,185	)		—		(4,579	)		3,451			(47,313	)

Total net intangible assets with finite lives		18,134			14,835		(4,579	)		(1,322	)		27,068
Intangible assets with indefinite lives:
Tradename		311,070			—		—			(1,231	)		309,839

Total intangible assets — net	$	329,204		$	14,835	$	(4,579	)	$	(2,553	)	$	336,907

⁽¹⁾

Activity for 2010 includes a write-off of approximately $5,814 for a vendor contract in Mexico that was terminated, approximately $2,294 related to the Company’s original IMAX license agreement that was terminated, impairment charges of approximately $1,527 and foreign currency translation adjustments. Activity for 2011 includes the write-off of approximately $549 for a vendor contract in Brazil that was terminated and foreign currency translation adjustments.

⁽²⁾	See Note 5.

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


For the year ended December 31, 2012	$	4,716
For the year ended December 31, 2013		4,536
For the year ended December 31, 2014		3,978
For the year ended December 31, 2015		3,660
For the year ended December 31, 2016		3,429
Thereafter		6,749

Total	$	27,068

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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