Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations

Discontinued Operations

NOTE 6—DISCONTINUED OPERATIONS

Theatres are generally considered for closure due to an expiring lease, underperformance, or the opportunity to better deploy invested capital. During the three months ended September 30, 2011 and 2010, the Company closed one theatre in each period and for the nine months ended September 30, 2011 and 2010, the Company closed five and seven theatres, respectively. With respect to the closure during the three months ended September 30, 2011, the Company classified one theatre as discontinued operations. The Company did not classify any theatres as discontinued operations for the three months ended September 30, 2010. For the nine months ended September 30, 2011 and 2010, the Company classified five 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 nine months ended September 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 nine months ended September 30, 2011 and 2010:

	Three Months Ended September 30,
	2011			2010
Revenue from discontinued operations	$	93		$	1,343
Operating (loss) income before income taxes	$	(40	)	$	81
Income tax benefit from discontinued operations		18			73
Loss on disposal, before income taxes		(3	)		—
Income tax benefit on disposal		1			—
(Loss) income from discontinued operations	$	(24	)	$	154

	Nine Months  Ended September 30,
	2011			2010
Revenue from discontinued operations	$	497		$	3,757
Operating loss before income taxes	$	(494	)	$	(214	)
Income tax benefit for discontinued operations		184			82
Gain on disposal, before income taxes		231			284
Income tax expense on disposal		(86	)		(109	)
(Loss) income from discontinued operations	$	(165	)	$	43