Impairment Of Long-Lived Assets

3 Months Ended

Mar. 31, 2012

Impairment Of Long-Lived Assets [Abstract]

Impairment Of Long-Lived Assets

NOTE 2—IMPAIRMENT OF LONG-LIVED ASSETS

For the three months ended March 31, 2012, impairment charges aggregated $1,486. The impairment charges were primarily the result of the Company's plan to replace an owned theatre prior to the end of its useful life. The Company recorded impairment charges of $161 during the three months ended March 31, 2011 which were primarily the result of continued deterioration of previously impaired theatres.

The estimated aggregate fair value of the long-lived assets impaired during the three months ended March 31, 2012 was approximately $4,807. These fair value estimates are considered Level 3 estimates and were derived primarily from discounting estimated future cash flows and contracts to sell certain owned properties. Future cash flows for a particular theatre are based on historical cash flows for that theatre, after giving effect to future attendance fluctuations, and are projected through the remainder of its lease term or useful life. The Company projects future attendance fluctuations of (10%) to 10%. The risk-adjusted rate of return used to discount these cash flows ranges from 10% to 15%.