Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2012
Estimated useful life of assets

Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows:

 

Category

  

Useful Life

Buildings on owned land

   40 years

Buildings on leased land

   Lesser of lease term or useful life

Land and buildings under capital lease

   Lesser of lease term or useful life

Theatre furniture and equipment

   5 to 15 years

Leasehold improvements

   Lesser of lease term or useful life
Amortization method used for Intangible assets

The table below summarizes the Company’s intangible assets and the amortization method used for each type of intangible asset:

 

Intangible Asset

  

Amortization Method

Goodwill

   Indefinite-lived

Tradename

   Indefinite-lived

Vendor contracts

   Straight-line method over the terms of the underlying contracts. The remaining terms of the underlying contracts range from 1 to 10 years.

Favorable/unfavorable leases

   Based on the pattern in which the economic benefits are realized over the terms of the lease agreements. The remaining terms of the lease agreements range from 1 to 24 years.

Other intangible assets

   Straight-line method over the terms of the underlying agreement or the expected useful life of the intangible asset. The remaining useful lives of these intangible assets range from 1 to 8 years.