Annual report pursuant to Section 13 and 15(d)

FOREIGN CURRENCY TRANSLATION

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FOREIGN CURRENCY TRANSLATION
12 Months Ended
Dec. 31, 2012
FOREIGN CURRENCY TRANSLATION
16. FOREIGN CURRENCY TRANSLATION

The accumulated other comprehensive loss account in stockholders’ equity of $23,682 and $37,698 at December 31, 2011 and 2012, respectively, includes the cumulative foreign currency losses of $11,325 and $31,330, respectively, from translating the financial statements of the Company’s international subsidiaries, the change in fair values of the Company’s interest rate swap agreements that are designated as hedges and the change in fair value of the Company’s available-for-sale securities.

All foreign countries where the Company has operations are non-highly inflationary and the local currency is the same as the functional currency in all of the locations. Thus, any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss.

Below is a summary of the impact of translating the December 31, 2012 financial statements of certain of the Company’s international subsidiaries:

 

Country

   Exchange Rate as of      Total Assets at
December 31, 2012
     Other
Comprehensive
Income (Loss) For
Year Ended
December 31, 2012
 
   December 31, 2012      December 31, 2011        

Brazil

     2.05         1.87       $ 348,405       $ (21,690

Mexico

     13.02         14.00       $ 137,705         6,601   

Argentina

     4.91         4.31       $ 133,152         (12,926

Colombia

     1,768.23         1,950.0       $ 46,898         2,790   

Chile

     479.8         520.7       $ 49,749         2,958   

All other

              2,262   
           

 

 

 
            $ (20,005
           

 

 

 

Below is a summary of the impact of translating the December 31, 2011 financial statements of certain of the Company’s international subsidiaries:

 

      Exchange Rate as of      Total Assets at
December 31, 2011
     Other
Comprehensive
Income (Loss) For
Year Ended
December 31, 2011
 

Country

   December 31, 2011      December 31, 2010        

Brazil

     1.87         1.67       $ 327,679       $ (28,000

Mexico

     14.00         12.39       $ 121,935         (11,818

Argentina

     4.31         3.98       $ 128,524         (4,196

Colombia

     1,950.0         1,950.0       $ 34,568         153   

Chile

     520.7         473.2       $ 40,084         (3,324

All other

              1,127   
           

 

 

 
            $ (46,058
           

 

 

 

 

During May 2011, the Company’s ownership in its Chilean subsidiary increased from 97.4% to 100% as a result of the Company’s purchase of the noncontrolling interests’ shares of Cinemark Chile. As part of this transaction, the Company recorded the amount of accumulated other comprehensive loss previously allocated to the noncontrolling interest of $485, related to the translation of the Chilean financial statements into U.S. dollars, as an increase to accumulated other comprehensive loss with an offsetting decrease to additional paid-in-capital. See Note 9.