Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations

Discontinued Operations

NOTE 6—DISCONTINUED OPERATIONS

Theatres are generally considered for closure due to an expiring lease term, underperformance, or the opportunity to better deploy invested capital. During the three months ended June 30, 2011 and 2010, the Company closed one and three theatres, respectively, and for the six months ended June 30, 2011 and 2010, the Company closed four and six theatres, respectively. With respect to these closures during the three months ended June 30, 2011 and 2010, the Company classified one theatre in each period as discontinued operations and for the six months ended June 30, 2011 and 2010, the Company classified four and one theatres, respectively, as discontinued operations. The Company reported the results of these operations, including gains and losses in disposal, as discontinued operations. The operations and cash flows of these theatres have been eliminated from the Company's operations, and the Company will not have any continuing involvement in their operations. All activity during the three and six months ended June 30, 2010 included in the accompanying consolidated statements of operations has been reclassified to separately reflect the results of operations from theatres closed in 2011 and considered discontinued operations through the respective date of the theatre closings. Assets and liabilities associated with the discontinued operations have not been segregated from assets and liabilities from continuing operations as they are not material.

The following table sets forth the summary of activity for discontinued operations for the three and six months ended June 30, 2011 and 2010:

	Three Months Ended June 30,
	2011			2010
Revenue from discontinued operations	$	24		$	1,296
Operating loss before income taxes	$	(153	)	$	(73	)
Income tax benefit from discontinued operations		51			6
Gain on disposal, before income taxes		9			284
Income tax expense on disposal		(3	)		(24	)
(Loss) income from discontinued operations	$	(96	)	$	193

	Six Months Ended June 30,
	2011			2010
Revenue from discontinued operations	$	181		$	2,240
Operating loss before income taxes	$	(389	)	$	(193	)
Income tax benefit for discontinued operations		126			74
Gain on disposal, before income taxes		233			284
Income tax expense on disposal		(75	)		(109	)
(Loss) income from discontinued operations	$	(105	)	$	56