Quarterly report pursuant to Section 13 or 15(d)

Investment in National CineMedia (Tables)

v3.10.0.1
Investment in National CineMedia (Tables) - NCM
9 Months Ended
Sep. 30, 2018
Summary of Activity With Equity Investee Included in the Company's Condensed Consolidated Financial Statements

Below is a summary of activity with NCM included in the Company’s condensed consolidated financial statements:

 

 

 

Investment

in NCM

 

 

Deferred

Revenue

 

 

Distributions

from NCM

 

 

Equity in

Earnings

 

 

Other

Revenue

 

 

Interest Expense -

NCM (3)

 

 

Cash Received

(Paid)

 

Balance as of January 1, 2018

 

$

200,550

 

 

$

(351,706

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impact of adoption of ASC

   Topic 606 (1)

 

 

 

 

 

53,605

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Receipt of common units due

   to annual common unit

   adjustment ("CUA")

 

 

5,012

 

 

 

(5,012

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of additional common

   units

 

 

78,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(78,393

)

Revenues earned under ESA (2) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,028

)

 

 

14,875

 

 

 

9,153

 

Receipt of excess cash

   distributions

 

 

(13,546

)

 

 

 

 

 

(10,120

)

 

 

 

 

 

 

 

 

 

 

 

23,666

 

Receipt under tax receivable

   agreement

 

 

(2,294

)

 

 

 

 

 

(2,048

)

 

 

 

 

 

 

 

 

 

 

 

4,342

 

Equity in earnings

 

 

11,341

 

 

 

 

 

 

 

 

 

(11,341

)

 

 

 

 

 

 

 

 

 

Amortization of deferred revenue

 

 

 

 

 

11,806

 

 

 

 

 

 

 

 

 

(11,806

)

 

 

 

 

 

 

Balance as of and for the nine months ended September 30, 2018

 

$

279,456

 

 

$

(291,307

)

 

$

(12,168

)

 

$

(11,341

)

 

$

(35,834

)

 

$

14,875

 

 

$

(41,232

)

 

(1)

As a result of adoption of ASC Topic 606, the Company determined that the deferred revenue associated with the ESA and Common Unit Adjustment agreement should be amortized on a straight-line basis versus the units of revenue method followed prior to adoption.  The Company recorded a reduction in the deferred revenue balance and a cumulative effect of a change in accounting principle in retained earnings (see also Note 6).  See Note 3 for further discussion of the impact of the adoption of ASC Topic 606.  

(2)

Amount includes the per patron and per digital screen theatre access fees due to the Company, net of amounts paid to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $9,064.

(3)  

Reflects impact of significant financing component related to amounts received in advance under the ESA and CUA agreements.  See Note 3.  

Summary Financial Information

Below is summary financial information for NCM for the periods indicated.  (The financial information for the three and nine months ended September 27, 2018 is not yet available.)  

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 28, 2018

 

 

June 29, 2017

 

 

June 28, 2018

 

 

June 29, 2017

 

Gross revenues

 

$

113,700

 

 

$

97,100

 

 

$

193,900

 

 

$

169,000

 

Operating income

 

$

40,200

 

 

$

28,300

 

 

$

51,200

 

 

$

33,400

 

Net income

 

$

25,000

 

 

$

15,400

 

 

$

22,000

 

 

$

7,500

 

 

 

 

As of

 

 

As of

 

 

 

June 28, 2018

 

 

December 28, 2017

 

Current assets

 

$

146,900

 

 

$

174,400

 

Noncurrent assets

 

$

757,900

 

 

$

758,300

 

Current liabilities

 

$

88,000

 

 

$

123,300

 

Noncurrent liabilities

 

$

943,500

 

 

$

925,400

 

Members deficit

 

$

(126,700

)

 

$

(116,000

)