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

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011


	Year Ended December 31,
	2009			2010			2011
Income before income taxes:
U.S.	$	98,908		$	124,335		$	114,692
Foreign		46,693			83,166			90,940

Total	$	145,601		$	207,501		$	205,632

Current:
Federal	$	35,303		$	35,172		$	17,070
Foreign		13,706			21,933			26,830
State		8,450			9,336			7,099

Total current expense		57,459			66,441			50,999

Deferred:
Federal		(9,527	)		(143	)		22,100
Foreign		(2,405	)		(7,188	)		(2,332	)
State		(682	)		(1,272	)		2,283

Total deferred taxes		(12,614	)		(8,603	)		22,051

Income taxes	$	44,845		$	57,838		$	73,050

Reconciliation between income tax expense and taxes computed


	Year Ended December 31,
	2009			2010			2011
Computed normal tax expense	$	50,960		$	72,625		$	71,972
Foreign inflation adjustments		1,614			47			(1,587	)
State and local income taxes, net of federal income tax impact		5,215			5,195			7,310
Foreign losses not benefited and other changes in valuation allowance		(552	)		(5,685	)		(676	)
Foreign tax rate differential		(1,464	)		(4,798	)		(3,321	)
Foreign dividends		2,141			3,952			4,173
Capital loss benefit		(12,913	)		—			—
Changes in uncertain tax positions		6,957			(8,080	)		396
True up to deferred tax items		(6,453	)		—			—
Other — net		(660	)		(5,418	)		(5,217	)

Income taxes	$	44,845		$	57,838		$	73,050

Tax effects of significant temporary differences and tax loss and tax credit carryforwards


	December 31,
	2010			2011
Deferred liabilities:
Theatre properties and equipment	$	101,162		$	92,466
Deferred intercompany sales		12,905			12,051
Intangible asset — other		23,872			24,749
Intangible asset — tradenames		112,720			116,333
Investment in partnerships		56,732			98,742

Total deferred liabilities		307,391			344,341

Deferred assets:
Deferred lease expenses		21,333			23,225
Theatre properties and equipment		14,152			5,910
Deferred revenue — NCM and Fandango		84,206			88,616
Capital lease obligations		51,294			51,211
Interest rate swap agreements		(606	)		5,882
Tax loss carryforwards		8,847			10,602
Alternative minimum tax and other credit carryforwards		9,076			7,548
Other expenses, not currently deductible for tax purposes		13,320			23,750

Total deferred assets		201,622			216,744

Net deferred income tax liability before valuation allowance		105,769			127,597
Valuation allowance against deferred assets		15,425			15,443

Net deferred income tax liability	$	121,194		$	143,040

Net deferred tax liability — Foreign	$	6,807		$	10,757
Net deferred tax liability — U.S.		114,387			132,283

Total	$	121,194		$	143,040

Reconciliation of total amounts of unrecognized tax benefits excluding interest and penalties


	Year Ended December 31,
	2009			2010			2011
Balance at January 1,	$	13,976		$	23,857		$	15,197
Gross increases-tax positions in prior periods		2,274			—			3,153
Gross decreases-tax positions in prior periods		—			(1,392	)		—
Gross increases — current period tax positions		7,845			3,551			3,729
Gross decreases — current period tax positions		(622	)		(613	)		(633	)
Settlements		—			(10,383	)		(2,467	)
Foreign currency translation adjustments		384			177			(319	)

Balance at December 31,	$	23,857		$	15,197		$	18,660

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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