Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

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. The Company did not close any theatres during the nine months ended September 30, 2014 prior to the adoption of ASU 2014-08 and therefore did not classify any closed theatres as discontinued operations during the three and nine months ended September 30, 2014. The Company closed one theatre during the three months ended September 30, 2013 and closed eight theatres during the nine months ended September 30, 2013. During the three and nine months ended September 30, 2013, the Company classified one theatre and two theatres, respectively, as discontinued operations. The Company reported the results of these operations, including gains and losses on disposal, as discontinued operations. The operations and cash flows of this theatre have been eliminated from the Company’s continuing operations, and the Company will not have any continuing involvement in its operations.

All activity during the three and nine months ended September 30, 2013 included in the accompanying consolidated statements of operations has been reclassified to separately reflect the results of operations from theatres closed in 2013 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, 2014 and 2013:

	Three Months Ended September 30,
	2014		2013
Revenue from discontinued operations	$	—	$	879
Operating loss before income taxes	$	—	$	(46	)
Income tax benefit from discontinued operations		—		17
Loss on disposal, before income taxes		—		(22	)
Income tax benefit on disposal		—		8
Loss from discontinued operations	$	—	$	(43	)

	Nine Months Ended September 30,
	2014			2013
Revenue from discontinued operations	$	1		$	2,661
Operating loss before income taxes	$	(86	)	$	(325	)
Income tax benefit from discontinued operations		34			123
Gain on disposal, before income taxes		—			85
Income tax expense on disposal		—			(32	)
Loss from discontinued operations	$	(52	)	$	(149	)