XML 58 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Investments
6 Months Ended
Jun. 30, 2014
Investments [Abstract]  
Investments
Investments

The Company's investment spending during the six months ended June 30, 2014 totaled $319.7 million, and included investments in each of its four operating segments.

Entertainment investment spending during the six months ended June 30, 2014 totaled $143.7 million, and was related primarily to the acquisition of 11 theatres as described below, as well as investments in build-to-suit construction of six megaplex theatres and redevelopment of three existing megaplex theatres, each of which is subject to a long-term triple net lease or long-term mortgage agreement.

On April 21, 2014, the Company acquired 100% of an entity that owns 11 theatre properties in seven states for a total purchase price of approximately $117.7 million. As a part of this transaction, the Company assumed a mortgage loan of $90.3 million, which was booked at fair value on the date of the acquisition and a note payable of $1.9 million, for which the carrying value approximated market value on the date of acquisition. See Note 7 for further details regarding these loans. The theatre properties are leased on a triple net basis under a master lease agreement to a subsidiary of Regal Cinemas, Inc. with the tenant responsible for all taxes, costs and expenses arising from the use or operation of the properties. The remaining initial lease term is approximately 13 years. On the acquisition date, the Company recorded the following in the consolidated balance sheet: $123.7 million to rental properties, $3.3 million to other assets (for in-place leases) and $101.5 million to debt. Proforma financial information for this acquisition has been omitted as the effects of the acquisition are not material to the consolidated financial statements. Acquisition related costs in connection with this acquisition of $0.5 million were expensed as incurred during the six months ended June 30, 2014.

Education investment spending during the six months ended June 30, 2014 totaled $101.9 million, and was related to investments in build-to-suit construction of 19 public charter schools, three private schools and six early childhood education centers, as well as the acquisition of two early childhood education centers located in Arizona, each of which is subject to a long-term triple net lease or long-term mortgage agreement.
 
Recreation investment spending during the six months ended June 30, 2014 totaled $72.0 million, and was related to build-to-suit construction of 12 TopGolf golf entertainment facilities and additional improvements at two existing Top Golf golf entertainment facilities and Camelback Mountain Resort, each of which is subject to a long-term triple net lease or a long-term mortgage agreement.

Other investment spending during the six months ended June 30, 2014 totaled $2.1 million, and was related to the land held for development in Sullivan County, New York.