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Impairment of Long-Lived Assets
3 Months Ended
Mar. 31, 2013
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, 2013, impairment charges aggregated to $204. The impairment charges were primarily the result of the continued deterioration of previously impaired theatres. The Company recorded impairment charges of $1,486 during the three months ended March 31, 2012 which were primarily the result of the Company’s plan to replace an owned theatre prior to the end of its useful life.

The estimated aggregate fair value of the long-lived assets impaired during the three months ended March 31, 2013 was approximately $538. These fair value estimates are considered Level 3 estimates within the fair value hierarchy prescribed by Accounting Standards Codification (“ASC 820”) Fair Value Measurements, and were derived primarily from discounting estimated future cash flows. 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%.