AMC ENTERTAINMENT HOLDINGS, INC. - 10-K filing on 2017-03-10

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2016

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Schedule of Condensed Statements of Operations

Year Ended December 31, 2016:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Revenues
Admissions	$	—	$	1,945,162	$	104,266	$	—	$	2,049,428
Food and beverage		—		972,940		46,153		—		1,019,093
Other theatre		—		152,346		14,979		—		167,325
Total revenues		—		3,070,448		165,398		—		3,235,846
Operating costs and expenses
Film exhibition costs		—		1,039,948		49,553		—		1,089,501
Food and beverage costs		—		134,199		7,968		—		142,167
Operating expense		—		830,824		42,632		—		873,456
Rent		—		491,131		14,332		—		505,463
General and administrative:
Merger, acquisition and transaction costs		—		46,943		952		—		47,895
Other		1,996		84,800		3,923		—		90,719
Depreciation and amortization		—		252,948		15,295		—		268,243
Impairment of long-lived assets		—		5,544		—		—		5,544
Operating costs and expenses		1,996		2,886,337		134,655		—		3,022,988
Operating income (loss)		(1,996)		184,111		30,743		—		212,858
Other expense (income):
Equity in net (earnings) loss of subsidiaries		(119,732)		(32,669)		—		152,401		—
Other expense (income)		—		(429)		(17)		—		(446)
Interest expense:
Corporate borrowings		110,526		123,671		57		(123,523)		110,731
Capital and financing lease obligations		—		8,490		2,316		—		10,806
Equity in earnings of non-consolidated entities		—		(46,920)		(798)		—		(47,718)
Investment income		(104,457)		(28,327)		(893)		123,523		(10,154)
Total other expense (income)		(113,663)		23,816		665		152,401		63,219
Earnings before income taxes		111,667		160,295		30,078		(152,401)		149,639
Income tax provision		—		40,563		(2,591)		—		37,972
Net earnings	$	111,667	$	119,732	$	32,669	$	(152,401)	$	111,667

Year Ended December 31, 2015:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Revenues
Admissions	$	—	$	1,887,584	$	4,453	$	—	$	1,892,037
Food and beverage		—		908,153		1,933		—		910,086
Other theatre		—		144,275		502		—		144,777
Total revenues		—		2,940,012		6,888		—		2,946,900
Operating costs and expenses
Film exhibition costs		—		1,019,327		2,130		—		1,021,457
Food and beverage costs		—		128,144		425		—		128,569
Operating expense		75		791,917		3,730		—		795,722
Rent		—		465,830		1,992		—		467,822
General and administrative:
Merger, acquisition and transaction costs		—		3,398		—		—		3,398
Other		—		58,174		38		—		58,212
Depreciation and amortization		—		232,896		65		—		232,961
Impairment of long-lived assets		—		1,702		—		—		1,702
Operating costs and expenses		75		2,701,388		8,380		—		2,709,843
Operating income (loss)		(75)		238,624		(1,492)		—		237,057
Other expense (income):
Equity in net (earnings) loss of subsidiaries		(93,375)		994		—		92,381		—
Other expense (income)		—		10,684		—		—		10,684
Interest expense:
Corporate borrowings		97,163		129,517		—		(129,823)		96,857
Capital and financing lease obligations		—		9,231		—		—		9,231
Equity in earnings of non-consolidated entities		—		(37,131)		—		—		(37,131)
Investment income		(107,719)		(27,721)		(498)		129,823		(6,115)
Total other expense (income)		(103,931)		85,574		(498)		92,381		73,526
Earnings (loss) before income taxes		103,856		153,050		(994)		(92,381)		163,531
Income tax provision		—		59,675		—		—		59,675
Net earnings (loss)	$	103,856	$	93,375	$	(994)	$	(92,381)	$	103,856

Year Ended December 31, 2014:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Revenues
Admissions	$	—	$	1,760,781	$	4,607	$	—	$	1,765,388
Food and beverage		—		795,789		1,946		—		797,735
Other theatre		—		131,931		336		—		132,267
Total revenues		—		2,688,501		6,889		—		2,695,390
Operating costs and expenses
Film exhibition costs		—		932,108		2,138		—		934,246
Food and beverage costs		—		111,532		459		—		111,991
Operating expense		96		729,282		3,960		—		733,338
Rent		—		453,106		2,133		—		455,239
General and administrative:
Merger, acquisition and transaction costs		—		1,161		—		—		1,161
Other		—		64,831		42		—		64,873
Depreciation and amortization		—		216,258		63		—		216,321
Impairment of long-lived assets		—		3,149		—		—		3,149
Operating costs and expenses		96		2,511,427		8,795		—		2,520,318
Operating income (loss)		(96)		177,074		(1,906)		—		175,072
Other expense (income):
Equity in net (earnings) loss of subsidiaries		(51,401)		1,905		—		49,496		—
Other expense (income)		—		(8,344)		—		—		(8,344)
Interest expense:
Corporate borrowings		110,861		149,759		—		(149,548)		111,072
Capital and financing lease obligations		—		9,867		—		—		9,867
Equity in earnings of non-consolidated entities		—		(26,615)		—		—		(26,615)
Investment income		(123,636)		(34,056)		(1)		149,548		(8,145)
Total other expense (income)		(64,176)		92,516		(1)		49,496		77,835
Earnings (loss) before income taxes		64,080		84,558		(1,905)		(49,496)		97,237
Income tax provision		—		33,470		—		—		33,470
Earnings (loss) from continuing operations		64,080		51,088		(1,905)		(49,496)		63,767
Gain from discontinued operations, net of income taxes		—		313		—		—		313
Net earnings (loss)	$	64,080	$	51,401	$	(1,905)	$	(49,496)	$	64,080

Schedule of Condensed Statements of Comprehensive Income

Year Ended December 31, 2016:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Net earnings	$	111,667	$	119,732	$	32,669	$	(152,401)	$	111,667
Equity in other comprehensive income (loss) of subsidiaries		(5,355)		(3,629)		—		8,984		—
Unrealized foreign currency translation adjustment, net of tax		—		(181)		(3,700)		—		(3,881)
Pension and other benefit adjustments:
Net gain (loss) arising during the period, net of tax		—		(364)		71		—		(293)
Amortization of net loss (gain) reclassified into general and administrative: other, net of tax		—		16		—		—		16
Settlement gain reclassified into general and administrative, other, net of tax		—		(3)		—		—		(3)
Marketable securities:										—
Unrealized holding gain arising during the period, net of tax		—		589		—		—		589
Realized net gain reclassified into investment income, net of tax		—		(1,816)		—		—		(1,816)
Equity method investees’ cash flow hedge:										—
Unrealized net holding loss arising during the period, net of tax		—		(309)		—		—		(309)
Realized net loss reclassified into equity in earnings of non-consolidated entities, net of tax		—		342		—		—		342
Other comprehensive income (loss)		(5,355)		(5,355)		(3,629)		8,984		(5,355)
Total comprehensive income	$	106,312	$	114,377	$	29,040	$	(143,417)	$	106,312

Year Ended December 31, 2015:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Net earnings (loss)	$	103,856	$	93,375	$	(994)	$	(92,381)	$	103,856
Equity in other comprehensive income (loss) of subsidiaries		(10,040)		552		—		9,488		—
Unrealized foreign currency translation adjustment, net of tax		—		820		552		—		1,372
Pension and other benefit adjustments:
Net gain arising during the period, net of tax		—		166		—		—		166
Prior service credit arising during the period, net of tax		—		746		—		—		746
Amortization of net (gain) loss reclassified into general and administrative: other, net of tax		—		(1,679)		—		—		(1,679)
Amortization of prior service credit reclassified into general and administrative: other, net of tax		—		(1,762)		—		—		(1,762)
Curtailment gain reclassified into general and administrative: other, net of tax		—		(7,239)		—		—		(7,239)
Settlement gain reclassified into general and administrative: other, net of tax		—		(196)		—		—		(196)
Marketable securities:
Unrealized holding loss arising during the period, net of tax		—		(1,056)		—		—		(1,056)
Realized net gain reclassified into net investment income, net of tax		—		(156)		—		—		(156)
Equity method investees’ cash flow hedge:
Unrealized net holding loss arising during the period, net of tax		—		(693)		—		—		(693)
Realized net loss reclassified into equity in earnings of non-consolidated entities, net of tax		—		457		—		—		457
Other comprehensive income (loss)		(10,040)		(10,040)		552		9,488		(10,040)
Total comprehensive income (loss)	$	93,816	$	83,335	$	(442)	$	(82,893)	$	93,816

Year Ended December 31, 2014:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Net earnings (loss)	$	64,080	$	51,401	$	(1,905)	$	(49,496)	$	64,080
Equity in other comprehensive income (loss) of subsidiaries		(11,360)		732		—		10,628		—
Unrealized foreign currency translation adjustment, net of tax		—		246		732		—		978
Pension and other benefit adjustments:
Net loss arising during the period, net of tax		—		(13,543)		—		—		(13,543)
Amortization of net (gain) loss reclassified into general and administrative: other, net of tax		—		(844)		—		—		(844)
Amortization of prior service credit reclassified into general and administrative: other, net of tax		—		(1,016)		—		—		(1,016)
Marketable securities:
Unrealized holding gain arising during the period, net of tax		—		2,627		—		—		2,627
Realized net gain reclassified into net investment income, net of tax		—		(31)		—		—		(31)
Equity method investees’ cash flow hedge:
Unrealized net holding loss arising during the period, net of tax		—		(59)		—		—		(59)
Realized net loss reclassified into equity in earnings of non-consolidated entities, net of tax		—		528		—		—		528
Other comprehensive income (loss)		(11,360)		(11,360)		732		10,628		(11,360)
Total comprehensive income (loss)	$	52,720	$	40,041	$	(1,173)	$	(38,868)	$	52,720

Schedule of Condensed Balance Sheets

As of December 31, 2016:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Assets
Current assets:
Cash and equivalents	$	2,989	$	94,733	$	109,351	$	—	$	207,073
Receivables, net		201		165,867		47,599		—		213,667
Other current assets		1,842		151,862		109,199		—		262,903
Total current assets		5,032		412,462		266,149		—		683,643
Investment in equity of subsidiaries		2,330,743		709,662		—		(3,040,405)		—
Property, net		—		1,585,577		1,450,282		—		3,035,859
Intangible assets, net		—		228,373		136,769		—		365,142
Intercompany advances		3,443,793		(1,781,339)		(1,662,454)		—		—
Goodwill		(2,143)		2,422,094		1,513,009		—		3,932,960
Deferred tax asset		—		87,541		2,904		—		90,445
Other long-term assets		7,706		475,860		50,226		—		533,792
Total assets	$	5,785,131	$	4,140,230	$	1,756,885	$	(3,040,405)	$	8,641,841
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	—	$	380,994	$	120,767	$	—	$	501,761
Accrued expenses and other liabilities		17,613		197,569		113,767		—		328,949
Deferred revenues and income		—		232,357		44,880		—		277,237
Current maturities of corporate borrowings and capital and financing lease obligations		13,806		10,799		56,638		—		81,243
Total current liabilities		31,419		821,719		336,052		—		1,189,190
Corporate borrowings		3,742,978		2,777		—		—		3,745,755
Capital and financing lease obligations		—		83,863		525,496		—		609,359
Exhibitor services agreement		—		359,244		35		—		359,279
Deferred tax liability		—		—		20,962		—		20,962
Other long-term liabilities		—		541,884		164,678		—		706,562
Total liabilities		3,774,397		1,809,487		1,047,223		—		6,631,107
Temporary equity		1,080		—		—		—		1,080
Stockholders’ equity		2,009,654		2,330,743		709,662		(3,040,405)		2,009,654
Total liabilities and stockholders’ equity	$	5,785,131	$	4,140,230	$	1,756,885	$	(3,040,405)	$	8,641,841

As of December 31, 2015:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Assets
Current assets:
Cash and equivalents	$	1,944	$	167,023	$	42,283	$	—	$	211,250
Receivables, net		(21)		105,477		53		—		105,509
Other current assets		—		96,302		1,306		—		97,608
Total current assets		1,923		368,802		43,642		—		414,367
Investment in equity of subsidiaries		1,638,903		31,609		—		(1,670,512)		—
Property, net		—		1,401,686		242		—		1,401,928
Intangible assets, net		—		237,376		—		—		237,376
Intercompany advances		1,805,829		(1,811,112)		5,283		—		—
Goodwill		(2,143)		2,408,834		—		—		2,406,691
Deferred tax asset		295		125,903		—		—		126,198
Other long-term assets		9,686		492,057		14		—		501,757
Total assets	$	3,454,493	$	3,255,155	$	49,181	$	(1,670,512)	$	5,088,317
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	—	$	312,591	$	434	$	—	$	313,025
Accrued expenses and other liabilities		7,188		151,619		(143)		—		158,664
Deferred revenues and income		—		221,679		—		—		221,679
Current maturities of corporate borrowings and capital and financing lease obligations		8,806		9,980		—		—		18,786
Total current liabilities		15,994		695,869		291		—		712,154
Corporate borrowings		1,898,432		4,166		—		—		1,902,598
Capital and financing lease obligations		—		93,273		—		—		93,273
Exhibitor services agreement		—		377,599		—		—		377,599
Other long-term liabilities		—		445,345		17,281		—		462,626
Total liabilities		1,914,426		1,616,252		17,572		—		3,548,250
Temporary equity		1,364		—		—		—		1,364
Stockholders’ equity		1,538,703		1,638,903		31,609		(1,670,512)		1,538,703
Total liabilities and stockholders’ equity	$	3,454,493	$	3,255,155	$	49,181	$	(1,670,512)	$	5,088,317

Schedule of Condensed Statements of Cash Flows

Year Ended December 31, 2016:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	7,238	$	438,652	$	(14,235)	$	—	$	431,655
Cash flows from investing activities:
Capital expenditures		—		(410,906)		(10,807)		—		(421,713)
Acquisition of Odeon, net of cash acquired		—		(480,338)		41,605				(438,733)
Acquisition of Carmike, net of cash acquired		—		(584,291)		86,493				(497,798)
Acquisition of Starplex, net of cash acquired		—		681		—		—		681
Proceeds from disposition of long-term assets		—		19,909		—		—		19,909
Investments in non-consolidated entities, net		—		(10,481)		—		—		(10,481)
Other, net		—		(6,515)		—		—		(6,515)
Net cash provided by (used in) investing activities		—		(1,471,941)		117,291		—		(1,354,650)
Cash flows from financing activities:
Proceeds from the issuance of Term Loan due 2023		498,750		—		—		—		498,750
Proceeds from issuance of Senior Subordinated Sterling Notes due 2024		310,000		—		—		—		310,000
Proceeds from issuance of Senior Subordinated Notes due 2026		595,000		—		—		—		595,000
Proceeds from issuance of Bridge Loan due 2017		350,000		—		—		—		350,000
Payment of Odeon Senior Subordinated GBP Notes due 2018		(380,678)		—		—		—		(380,678)
Payment of Odeon Senior Subordinated EUR Notes due 2018		(212,495)		—		—		—		(212,495)
Payments under Revolving Credit Facility		(75,000)		—		—		—		(75,000)
Payments of stock issuance costs		(763)		—		—		—		(763)
Principal payments under Term Loan		(8,806)		—		—		—		(8,806)
Principal payments under capital and financing lease obligations		—		(8,591)		(2,261)		—		(10,852)
Principal payments under promissory note		—		(1,389)		—		—		(1,389)
Cash used to pay dividends		(79,627)		—		—		—		(79,627)
Deferred financing fees		(65,877)		—		—		—		(65,877)
Change in intercompany advances		(935,110)		968,063		(32,953)		—		—
Net cash provoded by (used in) financing activities		(4,606)		958,083		(35,214)		—		918,263
Effect of exchange rate changes on cash and equivalents		(1,587)		2,916		(774)		—		555
Net increase (decrease) in cash and equivalents		1,045		(72,290)		67,068		—		(4,177)
Cash and equivalents at beginning of period		1,944		167,023		42,283		—		211,250
Cash and equivalents at end of period	$	2,989	$	94,733	$	109,351	$	—	$	207,073

Year Ended December 31, 2015:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Cash flows from operating activities:
Net cash provided by operating activities	$	15,017	$	449,121	$	3,419	$	—	$	467,557
Cash flows from investing activities:
Capital expenditures		—		(333,395)		(28)		—		(333,423)
Acquisition of Starplex Cinemas, net of cash acquired		—		(172,853)		—		—		(172,853)
Proceeds from disposition of long-term assets		—		604		—		—		604
Investments in non-consolidated entities, net		—		(1,915)		—		—		(1,915)
Other, net		—		(1,849)		—		—		(1,849)
Net cash used in investing activities		—		(509,408)		(28)		—		(509,436)
Cash flows from financing activities:
Proceeds from issuance of Senior Subordinated Notes due 2025		600,000		—		—		—		600,000
Proceeds from extension and modification of Term Loan due 2022		124,375		—		—		—		124,375
Repurchase of Senior Subordinated Notes due 2020		(645,701)		—		—		—		(645,701)
Net borrowings under Revolving Credit Facility		75,000		—		—		—		75,000
Principal payments under Term Loan		(5,813)		—		—		—		(5,813)
Principal payments under capital and financing lease obligations		—		(7,840)		—		—		(7,840)
Principal payments under promissory note		—		(1,389)		—		—		(1,389)
Principal amount of coupon payment under Senior Subordinated Notes due 2020		(3,486)		—		—		—		(3,486)
Deferred financing costs		(21,252)		—		—		—		(21,252)
Change in intercompany advances		(60,042)		62,742		(2,700)		—		—
Cash used to pay dividends		(78,608)		—		—		—		(78,608)
Net cash used in financing activities		(15,527)		53,513		(2,700)		—		35,286
Effect of exchange rate changes on cash and equivalents		—		(320)		(43)		—		(363)
Net decrease in cash and equivalents		(510)		(7,094)		648		—		(6,956)
Cash and equivalents at beginning of period		2,454		174,117		41,635		—		218,206
Cash and equivalents at end of period	$	1,944	$	167,023	$	42,283	$	—	$	211,250

Year Ended December 31, 2014:


			Subsidiary		Subsidiary		Consolidating		Consolidated
(In thousands)	Holdings		Guarantors		Non-Guarantors		Adjustments		Holdings
Cash flows from operating activities:
Net cash provided by operating activities	$	13,212	$	280,990	$	3,100	$	—	$	297,302
Cash flows from investing activities:
Capital expenditures		—		(270,677)		(57)		—		(270,734)
Proceeds from disposition of long-term assets		—		238		—		—		238
Investments in non-consolidated entities, net		—		(1,522)		—		—		(1,522)
Other, net		—		327		—		—		327
Net cash used in investing activities		—		(271,634)		(57)		—		(271,691)
Cash flows from financing activities:
Proceeds from issuance of Senior Subordinated Notes due 2022		375,000		—		—		—		375,000
Repurchase of Senior Notes due 2019		(639,728)		—		—		—		(639,728)
Payment of initial public offering costs		—		(281)		—		—		(281)
Principal payments under Term Loan		(7,750)		—		—		—		(7,750)
Principal payments under capital and financing lease obligations		—		(6,941)		—		—		(6,941)
Principal payments under promissory note		—		(1,389)		—		—		(1,389)
Principal amount of coupon payment under Senior Subordinated Notes due 2020		(6,227)		—		—		—		(6,227)
Cash used to pay deferred financing costs		(7,952)		—		—		—		(7,952)
Cash used to pay dividends		(58,504)		—		—		—		(58,504)
Purchase of treasury stock		(92)		—		—		—		(92)
Change in intercompany advances		331,867		(328,651)		(3,216)		—		—
Net cash used in financing activities		(13,386)		(337,262)		(3,216)		—		(353,864)
Effect of exchange rate changes on cash and equivalents		—		34		(29)		—		5
Net decrease in cash and equivalents		(174)		(327,872)		(202)		—		(328,248)
Cash and equivalents at beginning of period		2,628		501,989		41,837		—		546,454
Cash and equivalents at end of period	$	2,454	$	174,117	$	41,635	$	—	$	218,206