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Summary Of Significant Accounting Policies (Policy)
9 Months Ended
Sep. 30, 2019
Summary Of Significant Accounting Policies [Abstract]  
Basis Of Consolidation

Basis of Consolidation

The accompanying consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries as well as majority-owned subsidiaries that the Company controls, and should be read in conjunction with the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2018 (“2018 Form 10-K”).  All significant intercompany balances and transactions have been eliminated on consolidation.  These consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (“SEC”).  As such, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. We believe that we have included all normal and recurring adjustments necessary for a fair presentation of the results for the interim period.



Operating results for the quarter and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

Use Of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Significant estimates include (i) projections we make regarding the recoverability and impairment of our assets (including goodwill and intangibles), (ii) valuations of our derivative instruments, (iii) recoverability of our deferred tax assets, (iv) estimation of breakage and redemption experience rates, which drive how we recognize breakage on our gift card and gift certificates, and revenue from our customer loyalty program, and (v) allocation of insurance proceeds to various recoverable components. Actual results may differ from those estimates.

Recently Adopted And Issued Accounting Pronouncements

Recently Adopted and Issued Accounting Pronouncements



Adopted:



1)

Accounting Standards Update (“ASU”) 2016-02 Leases: In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard, Accounting Standards Codification (“ASC”) 842 Leases, to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet.  Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement.  A modified retrospective transition approach is required for lessees with capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available.



On January 1, 2019, we adopted the new accounting standard ASC 842 Leases using the modified retrospective method. We recognized the cumulative effect of initially applying the new leasing standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The standard had a material impact on our consolidated balance sheets, but not on our consolidated income statements or statements of cash flow.





 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Balance at
December 31,
2018

 

Adjustments
due to ASC
842

 

Balance at
January 1,
2019

Assets

 

 

 

 

 

 

 

 

 

Operating property, net

 

$

257,667 

 

$

370 

 

$

258,037 

Operating lease right-of-use assets

 

 

 —

 

 

232,319 

 

 

232,319 

Intangible assets, net

 

 

7,369 

 

 

(3,542)

 

 

3,827 

Deferred tax asset, net

 

 

26,235 

 

 

82 

 

 

26,317 

Liabilities

 

 

 

 

 

 

 

 

 

Operating lease liabilities

 

$

 —

 

$

245,280 

 

$

245,280 

Other non-current liabilities

 

 

28,931 

 

 

(16,033)

 

 

12,898 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

Non-controlling interest

 

$

4,337 

 

$

(46)

 

$

4,291 

Retained earnings

 

 

47,616 

 

 

28 

 

 

47,644 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Quarter Ended September 30, 2019

 

Nine Months Ended September 30, 2019

(Dollars in thousands)

 

As Reported,

September 30, 2019

 

Balances

Without

Adoption of

ASC 842

 

Effect of
change
Higher /
(Lower)

 

As Reported,

September 30, 2019

 

Balances
Without
Adoption of
ASC 842

 

Effect of
change
Higher /
(Lower)

Cinema costs and expenses

 

$

53,709 

 

$

53,746 

 

$

(37)

 

$

158,273 

 

$

158,357 

 

$

(84)

Depreciation and amortization

 

 

5,704 

 

 

5,665 

 

 

39 

 

 

16,870 

 

 

16,749 

 

 

121 

General and administrative

 

 

5,908 

 

 

5,949 

 

 

(41)

 

 

18,426 

 

 

18,554 

 

 

(128)

Interest expense, net

 

 

1,871 

 

 

1,867 

 

 

 

 

5,924 

 

 

5,914 

 

 

10 

Income tax (benefit) expense

 

 

547 

 

 

535 

 

 

12 

 

 

1,159 

 

 

1,132 

 

 

27 

Net income (loss)

 

$

852 

 

$

829 

 

$

23 

 

$

1,112 

 

$

1,058 

 

$

54 







 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

As Reported,
September 30, 2019

 

Balances
Without
Adoption of
ASC 842

 

Effect of
change
Higher /
(Lower)

Assets

 

 

 

 

 

 

 

 

 

Operating property, net

 

$

248,100 

 

$

247,939 

 

$

161 

Intangible assets

 

 

3,607 

 

 

6,894 

 

 

(3,287)

Operating lease right-of-use assets

 

 

216,963 

 

 

 —

 

 

216,963 

Deferred tax asset, net

 

 

25,959 

 

 

25,904 

 

 

55 

Liabilities

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

9,339 

 

$

9,459 

 

$

(120)

Operating lease liabilities, current

 

 

19,579 

 

 

 —

 

 

19,579 

Other non-current liabilities

 

 

12,330 

 

 

28,727 

 

 

(16,397)

Operating lease liabilities, non-current

 

 

210,737 

 

 

 —

 

 

210,737 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

Retained earnings

 

$

48,859 

 

$

48,805 

 

$

54 



2)

ASU 2014-09 Revenue from Contracts with Customers: On January 1, 2018, we adopted the new accounting standard ASC 606 Revenue from Contracts with Customers using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information was not restated. Adoption of this standard has no material effect on our consolidated financial statements.



3)

On January 1, 2018, we adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB Emerging Issues Task Force. This standard requires that amounts generally described as restricted cash and cash equivalents be combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Adoption of this standard has no material effect on our consolidated statement of cash flows.



4)

On January 1, 2018, we adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The standard applies to eight (8) specific cash flow classification issues, reducing the current and potential future diversity in the presentation of certain cash flows. Adoption of this standard has no material effect on our consolidated statement of cash flows.



5)

On January 1, 2018, we adopted ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.  This standard (i) requires that an employer disaggregate the service cost component from the other components of net benefit cost, and (ii) specifies how to present the service cost component and the other components of net benefit cost in the income statement and (iii) allows only the service cost component of net benefit cost to be eligible for capitalization.  Adoption of this standard has no material impact on our consolidated financial statements.



6)

On January 1, 2018, we adopted ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business.  This ASU provides that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the asset is not a “business”, thus reducing the number of transactions that need further evaluation for business combination.   The standard has no material impact on our current consolidated financial statements, and we do not expect it to be applicable to our consolidated financial statements in the near term unless we enter into a definitive business acquisition transaction.



Issued:



v

ASUs Effective 2019 and Beyond

·

Goodwill Impairment Simplification  (ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment)



Issued by FASB in January 2017, this standard removes the second step of the two-step impairment test for measuring goodwill and is to be applied on a prospective basis only. The new standard is effective for the Company on January 1, 2020, including interim periods within the year of adoption.  Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.  Early adoption is not being contemplated. It is not anticipated that adoption of this standard will have any material impact on our consolidated financial statements.