Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.10.0.1
Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

10.

Goodwill and Other Intangible Assets

The Company’s goodwill was as follows:

 

 

 

U.S.

Operating

Segment

 

 

International

Operating

Segment

 

 

Total

 

Balance at January 1, 2018 (1)

 

$

1,174,041

 

 

$

110,038

 

 

$

1,284,079

 

Acquisition of theatres in Brazil (2)

 

 

 

 

 

9,732

 

 

 

9,732

 

Foreign currency translation adjustments

 

 

 

 

 

(17,011

)

 

 

(17,011

)

Balance at September 30, 2018 (1)

 

$

1,174,041

 

 

$

102,759

 

 

$

1,276,800

 

 

 

(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.

 

(2)

Amount represents preliminary purchase price allocation for theatres acquired in Brazil.

The Company evaluates goodwill for impairment annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value of the goodwill may not be fully recoverable.  The Company evaluates goodwill for impairment at the reporting unit level and has allocated goodwill to the reporting unit based on an estimate of its relative fair value. Management considers the reporting unit to be each of its nineteen regions in the U.S. and seven countries internationally with Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala considered one reporting unit (the Company does not have goodwill recorded for all of its international locations).  For the year ended December 31, 2017, the Company performed a quantitative goodwill impairment assessment on all reporting units, in accordance with ASC Topic 350-20-35.  No events or changes in circumstances occurred during the nine months ended September 30, 2018 that indicated the carrying value of goodwill might exceed its estimated fair value.

Intangible assets consisted of the following:

 

 

 

Balance at

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

 

 

January 1,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

 

2018

 

 

Additions (1)

 

 

Amortization

 

 

Other (2)

 

 

2018

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

$

105,895

 

 

$

 

 

$

 

 

$

(2,049

)

 

$

103,846

 

Accumulated amortization

 

 

(68,869

)

 

 

 

 

(4,204

)

 

 

 

 

(73,073

)

Total net intangible assets with finite lives

 

$

37,026

 

 

$

 

 

$

(4,204

)

 

$

(2,049

)

 

$

30,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets with indefinite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tradename and other

 

 

299,735

 

 

 

791

 

 

 

 

 

(361

)

 

 

300,165

 

Total intangible assets — net

 

$

336,761

 

 

$

791

 

 

$

(4,204

)

 

$

(2,410

)

 

$

330,938

 

 

 

(1)

Amount represents the acquisition of tradeable liquor licenses.

 

(2)

Amount represents foreign currency translation adjustments.

For the year ended December 31, 2017, the Company performed a quantitative assessment for all definite and indefinite-lived tradename assets.  No events or changes in circumstances occurred during the nine months ended September 30, 2018 that indicated the carrying value of its tradename assets might exceed their estimated fair values.

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

 

For the three months ended December 31, 2018

 

$

1,356

 

For the twelve months ended December 31, 2019

 

 

5,124

 

For the twelve months ended December 31, 2020

 

 

5,255

 

For the twelve months ended December 31, 2021

 

 

3,546

 

For the twelve months ended December 31, 2022

 

 

3,190

 

Thereafter

 

 

12,302

 

Total

 

$

30,773