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, 2013

Goodwill and Other Intangible Assets - Net

9.	GOODWILL AND OTHER INTANGIBLE ASSETS — NET

The Company’s goodwill was as follows:


	U.S. Operating Segment			International Operating Segment			Total
Balance at December 31, 2011 ⁽¹⁾	$	948,026		$	202,611		$	1,150,637
Acquisition of U.S. theatre		8,971			—			8,971
Foreign currency translation adjustments		—			(8,797	)		(8,797	)

Balance at December 31, 2012 ⁽¹⁾	$	956,997		$	193,814		$	1,150,811
Acquisition of U.S. theatres (Note 5)		203,827			—			203,827
Disposition of U.S. theatres (Note 5)		(10,353	)		—			(10,353	)
Disposition of Mexico theatres (Note 5)		—			(33,605	)		(33,605	)
Foreign currency translation adjustments		—			(22,590	)		(22,590	)

Balance at December 31, 2013⁽¹⁾	$	1,150,471		$	137,619		$	1,288,090

⁽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:


	December 31, 2011			Amortization			Other ⁽¹⁾			December 31, 2012
Intangible assets with finite lives:
Gross carrying amount	$	74,381		$	—		$	(2,460	)	$	71,921
Accumulated amortization		(47,313	)		(4,611	)		570			(51,354	)

Total net intangible assets with finite lives		27,068			(4,611	)		(1,890	)		20,567
Intangible assets with indefinite lives:
Tradename		309,839			—			335			310,174

Total intangible assets — net	$	336,907		$	(4,611	)	$	(1,555	)	$	330,741


	December 31, 2012			Acquisitions ⁽²⁾		Amortization			Dispositions ⁽³⁾			Other ⁽¹⁾			December 31, 2013
Intangible assets with finite lives:
Gross carrying amount	$	71,921		$	44,487	$	—		$	(8,862	)	$	(5,929	)	$	101,617
Accumulated amortization		(51,354	)		—		(5,995	)		8,219			2,833			(46,297	)

Total net intangible assets with finite lives	$	20,567		$	44,487	$	(5,995	)	$	(643	)	$	(3,096	)	$	55,320
Intangible assets with indefinite lives:
Tradename		310,174			—		—			(8,711	)		(639	)		300,824

Total intangible assets — net	$	330,741		$	44,487	$	(5,995	)	$	(9,354	)	$	(3,735	)	$	356,144

⁽¹⁾	Activity for 2012 consists of the write off of favorable leases for theatres that were closed and foreign currency translation adjustments. Activity for 2013 consists of the impairment of $708 for a favorable lease related to one U.S. theatre and foreign currency translation adjustments.

⁽²⁾	See Note 5.

⁽³⁾	Reflects disposition of three Rave theatres and the Company’s Mexico theatres (see Note 5).

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


For the year ended December 31, 2014	$	6,226
For the year ended December 31, 2015		5,988
For the year ended December 31, 2016		5,876
For the year ended December 31, 2017		5,319
For the year ended December 31, 2018		5,225
Thereafter		26,686

Total	$	55,320

- 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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