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

IMPAIRMENT OF LONG-LIVED AND OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

The following table is a summary of the evaluations performed for each quarter by asset classification.

	Impairment	Asset	Valuation	Valuation
	Test	Category	Approach	Multiple
First Quarter	Quantitative	Goodwill	Market ⁽¹⁾	8 times
		Tradename Intangible Assets	Income	N/A
		Other Long-lived Assets	Market	6 times

Second Quarter	Qualitative	Goodwill	N/A	N/A
		Tradename Intangible Assets	N/A	N/A
		Other Long-lived Assets	N/A	N/A

Third Quarter	Quantitative	Goodwill	Market ⁽¹⁾	2.9 to 7 times
		Tradename Intangible Assets	Income	N/A
		Other Long-lived Assets	Market	3.2 to 6 times

Fourth Quarter	Quantitative	Goodwill	Market ⁽¹⁾	3.1 to 7 times
		Tradename Intangible Assets	Income	N/A
		Other Long-lived Assets	Market	3.1 to 6 times

(1)

The Company also used the income approach to test goodwill for impairment for the respective period.

The Company’s theatre asset, goodwill, intangible asset and investment impairment charges were as follows for the periods presented:

	Year Ended
	December 31,
	2018		2019		2020
U.S. Segment
Theatre properties	$	18,597	$	36,005	$	12,398
Theatre operating lease right-of-use assets		—		10,457		13,216
Investment in NCM ⁽¹⁾		—		—		92,655
Cost method investment		—		—		2,500
U.S. total		18,597		46,462		120,769

International segment
Theatre properties		13,775		8,821		9,951
Theatre operating lease right-of-use assets		—		1,718		5,025
Goodwill		—		—		16,128
Intangible assets		—		—		833
International total		13,775		10,539		31,937

Total impairment	$	32,372	$	57,001	$	152,706

(1)

See Note 8 for discussion on NCM impairment.