Impairment of Property and Equipment

12 Months Ended

Dec. 31, 2012

Impairment of Property and Equipment [Abstract]

IMPAIRMENT OF PROPERTY AND EQUIPMENT

NOTE 3—IMPAIRMENT OF PROPERTY AND EQUIPMENT

The Company recorded impairment charges of $4,348, $3,489, and $8,188, for the years ended December 31, 2012, 2011, and 2010, respectively. Of the impairment charges recorded for the year ended December 31, 2010, $7,699 related to property and equipment, with the remaining impairment pertaining to the write-off of intangible assets as discussed further in Note 5 – Goodwill and Other Intangibles. The estimated aggregate fair value of the long-lived assets impaired during the years ended December 31, 2012 and 2011 was approximately $5,932 and $5,576, respectively. These fair value estimates are considered Level 3 estimates within the fair value hierarchy prescribed by ASC 820 Fair Value Measurements, and were derived primarily from discounting estimated future cash flows and appraisals of certain owned properties. 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%.

	Year ended December 31,
	2012		2011		2010
Continuing Operations:
Theatre properties	$	3,723	$	2,484	$	6,369
Equipment		529		755		1,063
Impairment of long-lived assets	$	4,252	$	3,239	$	7,432
Discontinued Operations:
Theatre properties	$	81	$	200	$	185
Equipment		15		50		82
Impairment of long-lived assets	$	96	$	250	$	267

For 2012, impairment charges were primarily the result of (1) the Company’s plan to replace two owned theatres prior to the end of their useful lives, resulting in $2,376 in impairment charges using valuation inputs as of the date of the impairment analysis; (2) deterioration in the full-year operating results of certain theatres resulting in $191 in impairment charges using valuation inputs as of the date of the impairment analysis; and (3) the continued deterioration in the full year operating results of certain theatres impaired in prior years resulting in $1,781 in impairment charges using valuation inputs as of the date of the impairment analysis.

For 2011, impairment charges were primarily the result of (1) deterioration in the full-year operating results resulting in $2,086 in impairment charges using valuation inputs as of the date of the impairment analysis; (2) continued deterioration in the full year operating results of certain theatres impaired in prior years resulting in $703 in impairment charges using valuation inputs as of the date of the impairment analysis; and (3) a decline in the market value of a previously closed theatre, resulting in a charge of $700.

For 2010, impairment charges related to fixed assets were primarily the result of (1) deterioration in the full-year operating results of certain theatres resulting in $4,718 in impairment charges using valuation inputs as of the date of the impairment analysis; (2) continued deterioration in the full year operating results of certain theatres impaired in prior years resulting in $1,890 in impairment charges using valuation inputs as of the date of the impairment analysis; and (3) a decrease in the fair market value of equipment at previously impaired theatres, resulting in a charge of $1,091.