Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 25, 2014 | Oct. 28, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 25-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'National CineMedia, Inc. | ' |
Entity Central Index Key | '0001377630 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Current Fiscal Year End Date | '--01-01 | ' |
Entity Common Stock, Shares Outstanding | ' | 60,870,661 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 25, 2014 | Dec. 26, 2013 | ||
In Millions, unless otherwise specified | ||||
CURRENT ASSETS: | ' | ' | ||
Cash and cash equivalents | $24.60 | $54.70 | ||
Short-term marketable securities | 20.3 | [1] | 71.3 | [1] |
Receivables, net of allowance of $6.2 and $5.7, respectively | 97.2 | 120.4 | ||
Prepaid expenses (including $0.2 and $0.0 to founding members, respectively) | 3.2 | 3.1 | ||
Deferred tax assets | 4 | 4.2 | ||
Income tax receivable | 10.2 | 7.6 | ||
Current portion of notes receivable - founding members | 4.2 | [2] | 4.2 | [2] |
Other current assets - founding members | 0.9 | ' | ||
Total current assets | 164.6 | 265.5 | ||
NON-CURRENT ASSETS: | ' | ' | ||
Property and equipment, net of accumulated depreciation of $76.3 and $69.5, respectively | 23.5 | 25.6 | ||
Intangible assets, net of accumulated amortization of $64.0 and $48.7, respectively | 494.5 | 492 | ||
Deferred tax assets | 232.9 | 244.2 | ||
Debt issuance costs, net of accumulated amortization of $17.1 and $15.0, respectively | 16.2 | 17.7 | ||
Long-term notes receivable, net of current portion - founding members | 20.8 | [2] | 20.8 | [2] |
Other investments - related party | 1.1 | 1.1 | ||
Long-term marketable securities | 39.4 | [1] | ' | |
Other assets | 0.6 | 0.4 | ||
Total non-current assets | 829 | 801.8 | ||
TOTAL ASSETS | 993.6 | 1,067.30 | ||
CURRENT LIABILITIES: | ' | ' | ||
Amounts due to founding members | 23.7 | 30.1 | ||
Payable to founding members under tax receivable agreement | 21.7 | [3] | 28.6 | [3] |
Accrued expenses | 22.4 | 19.7 | ||
Accrued payroll and related expenses | 10.1 | 13.9 | ||
Accounts payable (including $0.9 and $0.8 to related party affiliates, respectively) | 11 | 20.5 | ||
Deferred revenue | 6.3 | 4.7 | ||
Deferred tax liability | 0.3 | ' | ||
Current portion of long-term debt | 14 | 14 | ||
Other current liabilities - related party | 3.3 | ' | ||
Total current liabilities | 112.8 | 131.5 | ||
NON-CURRENT LIABILITIES: | ' | ' | ||
Long-term debt | 881 | 876 | ||
Deferred tax liability | 57.3 | 61.9 | ||
Payable to founding members under tax receivable agreement | 142.7 | [3] | 144 | [3] |
Total non-current liabilities | 1,081 | 1,081.90 | ||
Total liabilities | 1,193.80 | 1,213.40 | ||
COMMITMENTS AND CONTINGENCIES (NOTE 6) | ' | ' | ||
EQUITY/(DEFICIT): | ' | ' | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding, respectively | ' | ' | ||
Common stock, $0.01 par value; 175,000,000 shares authorized, 58,746,988 and 58,519,137 issued and outstanding, respectively | 0.6 | 0.6 | ||
Additional paid in capital (deficit) | -263 | -271.7 | ||
Retained earnings (distributions in excess of earnings) | -142.2 | -80 | ||
Accumulated other comprehensive loss | -1.1 | -3.2 | ||
Total NCM, Inc. stockholders' equity/(deficit) | -405.7 | -354.3 | ||
Noncontrolling interests | 205.5 | 208.2 | ||
Total equity/(deficit) | -200.2 | -146.1 | ||
TOTAL LIABILITIES AND EQUITY | $993.60 | $1,067.30 | ||
[1] | Short-Term and Long-Term Marketable Securities — The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds and commercial paper are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and nine months ended September 25, 2014 and September 26, 2013, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short-term marketable securities is based on the specific identification method. As of September 25, 2014 and December 26, 2013, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer. | |||
[2] | Refer to the discussion of notes receivable from the founding members above. | |||
[3] | The Company paid the founding members $25.1 million in the first quarter of 2014, of which $6.7 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $18.4 million was for the 2013 tax year |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 | ||
In Millions, except Share data, unless otherwise specified | ||||
Allowance for doubtful accounts receivable | $6.20 | $5.70 | ||
Prepaid expenses | 3.2 | 3.1 | ||
Accumulated depreciation, property and equipment | 76.3 | 69.5 | ||
Accumulated amortization, intangible assets | 64 | 48.7 | ||
Accumulated amortization, debt issuance costs | 17.1 | 15 | ||
Accounts payable, related parties | 0.9 | 0.8 | ||
Preferred stock, par value | $0.01 | $0.01 | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Common stock, par value | $0.01 | $0.01 | ||
Common stock, shares authorized | 175,000,000 | 175,000,000 | ||
Common stock, shares issued | 58,746,988 | 58,519,137 | ||
Common stock, shares outstanding | 58,746,988 | 58,519,137 | ||
Purchase Of Movie Tickets And Concession Products [Member] | ' | ' | ||
Prepaid expenses | $0.20 | [1] | $0 | [1] |
[1] | Used primarily for marketing to NCM LLC’s advertising clients. |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | ||||
REVENUE: | ' | ' | ' | ' | ||||
Advertising (including revenue from founding members of $9.1, $11.5, $28.4 and $31.6 respectively) | $100.80 | $127.60 | $270.90 | $318.20 | ||||
Fathom Events | ' | 7.5 | ' | 21.9 | ||||
Total | 100.8 | 135.1 | 270.9 | 340.1 | ||||
OPERATING EXPENSES: | ' | ' | ' | ' | ||||
Advertising operating costs (including $1.2, $1.1, $2.6 and $2.6 to related parties, respectively) | 6.5 | 7.9 | 18.1 | 21.7 | ||||
Fathom Events operating costs (including $0.0, $1.3, $0.0 and $3.3 to founding members, respectively) | ' | 5.4 | ' | 15.4 | ||||
Network costs | 4.4 | 5.1 | 13.4 | 15.2 | ||||
Theatre access fees-founding members | 17 | [1] | 18.7 | [1] | 52.3 | [1] | 52.4 | [1] |
Selling and marketing costs (including $0.2, $0.3, $0.7 and $1.0 to founding members, respectively) | 14.7 | 15.6 | 43.8 | 46.7 | ||||
Merger-related administrative costs | 2 | ' | 3.7 | ' | ||||
Other administrative and other costs | 6.9 | 7.8 | 21.6 | 22.9 | ||||
Depreciation and amortization | 8.6 | 7.2 | 24.2 | 18.8 | ||||
Total | 60.1 | 67.7 | 177.1 | 193.1 | ||||
OPERATING INCOME | 40.7 | 67.4 | 93.8 | 147 | ||||
NON-OPERATING EXPENSES: | ' | ' | ' | ' | ||||
Interest on borrowings | 12.7 | 12.8 | 38.8 | 38.9 | ||||
Interest income (including $0.3, $0.0, $0.9 and $0.0 from founding members, respectively) | -0.3 | -0.1 | -1.2 | -0.3 | ||||
Accretion of interest on the discounted payable to founding members under tax receivable agreement | 3.5 | 3.4 | 10.8 | 10.2 | ||||
Amortization of terminated derivatives | 2.6 | 2.6 | 7.6 | 7.8 | ||||
Other non-operating expense | 0.7 | ' | 0.9 | 1.2 | ||||
Total | 19.2 | 18.7 | 56.9 | 57.8 | ||||
INCOME BEFORE INCOME TAXES | 21.5 | 48.7 | 36.9 | 89.2 | ||||
Income tax expense | 2.1 | 6.4 | 4.2 | 13 | ||||
CONSOLIDATED NET INCOME | 19.4 | 42.3 | 32.7 | 76.2 | ||||
Less: Net income attributable to noncontrolling interests | 14.6 | 28.6 | 27.4 | 54 | ||||
NET INCOME ATTRIBUTABLE TO NCM, INC. | $4.80 | $13.70 | $5.30 | $22.20 | ||||
NET INCOME PER NCM, INC. COMMON SHARE: | ' | ' | ' | ' | ||||
Basic | $0.08 | $0.24 | $0.09 | $0.40 | ||||
Diluted | $0.08 | $0.24 | $0.09 | $0.40 | ||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | ' | ' | ' | ' | ||||
Basic | 58,744,395 | 56,027,288 | 58,695,073 | 55,233,875 | ||||
Diluted | 59,043,769 | 56,875,241 | 58,987,945 | 55,864,471 | ||||
Dividends declared per common share | $0.22 | $0.22 | $1.16 | $0.66 | ||||
[1] | Comprised of payments per theatre attendee, payments per digital screen with respect to the founding member theatres included in the Company’s network and payments for access to higher quality digital cinema equipment |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 |
Revenue from founding members | $9.10 | $11.50 | $28.40 | $31.60 |
Interest income - founding members | 0.3 | ' | 0.9 | ' |
Advertising Operating Costs Including Movie Tickets And Concessions [Member] | ' | ' | ' | ' |
Costs to founding members/related party affiliates | 1.2 | 1.1 | 2.6 | 2.6 |
Fathom Events Operating Cost [Member] | ' | ' | ' | ' |
Costs to founding members/related party affiliates | 0 | 1.3 | 0 | 3.3 |
Selling And Marketing Cost [Member] | ' | ' | ' | ' |
Costs to founding members/related party affiliates | $0.20 | $0.30 | $0.70 | $1 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' |
CONSOLIDATED NET INCOME | $19.40 | $42.30 | $32.70 | $76.20 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ' | ' | ' | ' |
Amortization of terminated derivatives, net of tax of $0.5, $0.5, $1.4 and $1.4, respectively | 2.1 | 2.1 | 6.2 | 6.4 |
CONSOLIDATED COMPREHENSIVE INCOME | 21.5 | 44.4 | 38.9 | 82.6 |
Less: Comprehensive income attributable to noncontrolling interests | 16 | 30 | 31.5 | 58.2 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NCM, INC. | $5.50 | $14.40 | $7.40 | $24.40 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' |
Amortization of terminated derivatives, tax | $0.50 | $0.50 | $1.40 | $1.40 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Consolidated net income | $32.70 | $76.20 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ' | ' |
Deferred income tax expense | 12.2 | 11.4 |
Depreciation and amortization | 24.2 | 18.8 |
Non-cash share-based compensation | 5.1 | 6.2 |
Excess tax benefit from share-based compensation | 0.2 | ' |
Accretion of interest on the discounted payable to founding members under tax receivable agreement | 10.8 | 10.2 |
Amortization of terminated derivatives | 7.6 | 7.8 |
Amortization of debt issuance costs | 2.1 | 2.1 |
Write-off of debt issuance costs and other non-operating items | ' | 1.2 |
Changes in operating assets and liabilities: | ' | ' |
Receivables, net | 23.2 | -9.8 |
Accounts payable and accrued expenses | -6.1 | -3.2 |
Amounts due to founding members | 2.6 | 1 |
Payment to founding members under tax receivable agreement | -25.1 | -10.1 |
Income taxes and other | -2.6 | 2.1 |
Net cash provided by operating activities | 86.9 | 113.9 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -6.9 | -7.9 |
Purchases of marketable securities | -99.1 | -96.9 |
Proceeds from sale and maturities of marketable securities | 110.7 | 73.8 |
Purchases of intangible assets from affiliate circuits | -3 | -8.9 |
Net cash provided by (used in) investing activities | 1.7 | -39.9 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Payment of dividends | -68.1 | -36.4 |
Proceeds from borrowings | 92 | 44 |
Repayments of borrowings | -87 | -39 |
Payment of debt issuance costs | -0.7 | -3.4 |
Founding member integration payments | 1.5 | 1.1 |
Distributions to founding members | -55.7 | -57.7 |
Excess tax benefit from share-based compensation | -0.2 | ' |
Proceeds from stock option exercises | 0.8 | 16.5 |
Repurchase of stock for restricted stock tax withholding | -1.3 | -1.7 |
Net cash used in financing activities | -118.7 | -76.6 |
CHANGE IN CASH AND CASH EQUIVALENTS | -30.1 | -2.6 |
Cash and cash equivalents at beginning of period | 54.7 | 72.4 |
Cash and cash equivalents at end of period | 24.6 | 69.8 |
Supplemental disclosure of non-cash financing and investing activity: | ' | ' |
Purchase of an intangible asset with NCM LLC equity | 16.4 | 160.2 |
Purchase of subsidiary equity with NCM, Inc. equity | ' | 41.3 |
Accrued distributions to founding members | 21.8 | 36.1 |
(Decrease) increase in dividends not requiring cash in the period | -0.5 | 1.1 |
Write off of property and equipment included in accrued expenses | -0.4 | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 34.6 | 34.9 |
(Refunds) payments for income taxes, net | ($6.40) | $0.50 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements Of Equity/(Deficit) (USD $) | Common Stock [Member] | Additional Paid In Capital (Deficit) [Member] | Retained Earnings (Distribution In Excess Of Earnings) [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] | Total |
In Millions, except Share data | ||||||
Balance at Dec. 27, 2012 | $0.50 | ($362.40) | ($70.50) | ($6.70) | $82.70 | ($356.40) |
Balance, shares at Dec. 27, 2012 | 54,486,259 | ' | ' | ' | ' | ' |
Distributions to founding members | ' | ' | ' | ' | -72.9 | -72.9 |
NCM LLC equity returned for purchase of intangible asset | ' | 73.2 | ' | ' | 87 | 160.2 |
Income tax and other impacts of NCM LLC ownership changes | ' | -18.2 | ' | 0.3 | 3.1 | -14.8 |
Issuance of shares, value | ' | 41.3 | ' | ' | ' | 41.3 |
Issuance of shares, shares | 2,300,000 | ' | ' | ' | ' | ' |
NCM, Inc. Investment in subsidiary, value | ' | -41.3 | ' | ' | ' | -41.3 |
Comprehensive income, net of tax | ' | ' | 22.2 | 2.2 | 58.2 | 82.6 |
Share-based compensation issued, value | 0.1 | 14.7 | ' | ' | ' | 14.8 |
Share-based compensation issued, shares | 1,493,785 | ' | ' | ' | ' | ' |
Share-based compensation expense/capitalized | ' | 4.4 | ' | ' | 2.1 | 6.5 |
Cash dividends declared | ' | ' | -37.5 | ' | ' | -37.5 |
Balance at Sep. 26, 2013 | 0.6 | -288.3 | -85.8 | -4.2 | 160.2 | -217.5 |
Balance, shares at Sep. 26, 2013 | 58,280,044 | ' | ' | ' | ' | ' |
Balance at Dec. 26, 2013 | 0.6 | -271.7 | -80 | -3.2 | 208.2 | -146.1 |
Balance, shares at Dec. 26, 2013 | 58,519,137 | ' | ' | ' | ' | ' |
Distributions to founding members | ' | ' | ' | ' | -46.5 | -46.5 |
NCM LLC equity returned for purchase of intangible asset | ' | 7.5 | ' | ' | 8.9 | 16.4 |
Income tax and other impacts of NCM LLC ownership changes | ' | -2 | ' | ' | 1.7 | -0.3 |
Comprehensive income, net of tax | ' | ' | 5.3 | 2.1 | 31.5 | 38.9 |
Share-based compensation issued, value | ' | -0.5 | ' | ' | ' | -0.5 |
Share-based compensation issued, shares | 227,851 | ' | ' | ' | ' | ' |
Share-based compensation expense/capitalized | ' | 3.5 | ' | ' | 1.7 | 5.2 |
Excess tax benefit from share-based compensation | ' | 0.2 | ' | ' | ' | 0.2 |
Cash dividends declared | ' | ' | -67.5 | ' | ' | -67.5 |
Balance at Sep. 25, 2014 | $0.60 | ($263) | ($142.20) | ($1.10) | $205.50 | ($200.20) |
Balance, shares at Sep. 25, 2014 | 58,746,988 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme6
Condensed Consolidated Statements Of Equity/(Deficit) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | |
Consolidated Statements Of Equity/(Deficit) [Abstract] | ' | ' | ' | ' |
Dividends per share | $0.22 | $0.22 | $1.16 | $0.66 |
The_Company
The Company | 9 Months Ended | |||||
Sep. 25, 2014 | ||||||
The Company | ' | |||||
The Company | ' | |||||
1. the company | ||||||
Description of Business | ||||||
National CineMedia, Inc. (“NCM, Inc.”) was incorporated in Delaware as a holding company with the sole purpose of becoming a member and sole manager of National CineMedia, LLC (“NCM LLC”), an LLC owned by NCM, Inc., American Multi-Cinema, Inc. and AMC ShowPlace Theatres, Inc. (“AMC”), wholly owned subsidiaries of AMC Entertainment, Inc. (“AMCE”), Regal Cinemas, Inc. and Regal CineMedia Holdings, LLC, wholly owned subsidiaries of Regal Entertainment Group (“Regal”) and Cinemark Media, Inc. and Cinemark USA, Inc., wholly owned subsidiaries of Cinemark Holdings, Inc. (“Cinemark”). The terms “NCM”, “the Company” or “we” shall, unless the context otherwise requires, be deemed to include the consolidated entity. AMC, Regal and Cinemark and their affiliates are referred to in this document as “founding members”. The Company operates the largest digital in-theatre network in North America, allowing NCM to sell advertising (the “Services”) under long-term exhibitor services agreements (“ESAs”) with the founding members and certain third-party theatre circuits under long-term network affiliate agreements referred to in this document as “network affiliates”, which have terms from three to twenty years. | ||||||
As of September 25, 2014, NCM LLC had 128,290,567 common membership units outstanding, of which 58,746,988 (45.8%) were owned by NCM, Inc., 25,792,942 (20.1%) were owned by Regal, 24,556,136 (19.1%) were owned by Cinemark and 19,194,501 (15.0%) were owned by AMC. The membership units held by the founding members are exchangeable into NCM, Inc. common stock on a one-for-one basis. | ||||||
Recent Transactions | ||||||
On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company owned 32% by each of the founding members and 4% by NCM LLC, as described further in Note 4—Related Party Transactions. | ||||||
On May 5, 2014, NCM, Inc. entered into an Agreement and Plan of Merger (the “Merger Agreement”) to merge with Screenvision, LLC (“Screenvision”) for $375 million, consisting of $225 million in cash and $150 million of NCM, Inc. common stock (9,900,990 shares based on a price of $15.15 per share) (“the Merger”). The merger consideration is subject to adjustment based upon Screenvision’s Adjusted EBITDA for the twelve months ended April 30, 2014 and Screenvision’s working capital at closing. Consummation of the Merger is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act (“HSR Act”) and other customary closing conditions, including satisfaction of representations, warranties and covenants. All necessary corporate action by NCM, Inc. and Screenvision to approve the Merger has occurred. Following the Merger, NCM, Inc. will evaluate whether to contribute the Screenvision assets to NCM LLC. Although it is under no obligation to do so, upon approval of NCM, Inc.’s Board of Directors and the founding members, NCM, Inc. may contribute Screenvision assets and NCM, Inc. debt to NCM LLC in exchange for 9,900,990 NCM LLC membership units. NCM, Inc. has secured a commitment from a group of financial institutions for a $250 million term loan to finance the $225 million portion of the merger consideration that will be paid in cash, along with fees and expenses incurred in connection with the term loan and the merger. In addition, NCM LLC amended its senior secured credit facility to allow for the contribution of the Screenvision assets and NCM, Inc. debt to NCM LLC following the closing of the Merger. On November 3, 2014, the U.S. Department of Justice (the “DOJ”) filed an antitrust lawsuit seeking to enjoin the proposed merger between NCM, Inc. and Screenvision. The Company and Screenvision intend to defend their proposed merger. Refer to Note 10 – Subsequent Events for further information. | ||||||
Basis of Presentation | ||||||
The Company has prepared the unaudited Condensed Consolidated Financial Statements and related notes of NCM, Inc. in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures typically included in an annual report have been condensed or omitted for this quarterly report. Certain reclassifications have been made to the prior years’ financial statements to conform to the current presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. The balance sheet as of December 26, 2013 is derived from the audited financial statements of NCM, Inc. Therefore, the unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s annual report on Form 10-K filed for the fiscal year ended December 26, 2013. | ||||||
In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly in all material respects the financial position, results of operations and cash flows for all periods presented have been made. The Company’s business is seasonal and for this and other reasons operating results for interim periods may not be indicative of the Company’s full year results or future performance. As a result of the various related party agreements discussed in Note 4—Related Party Transactions, the operating results as presented are not necessarily indicative of the results that might have occurred if all agreements were with non-related third parties. | ||||||
Estimates— The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to the reserve for uncollectible accounts receivable, share-based compensation and income taxes. Actual results could differ from those estimates. | ||||||
Significant Accounting Policies | ||||||
The Company’s annual financial statements included in its Form 10-K filed for the fiscal year ended December 26, 2013 contain a complete discussion of the Company’s significant accounting policies. Following is additional information related to our accounting policies. | ||||||
Segment Reporting— Subsequent to the sale of the Fathom business on December 26, 2013, the sale of advertising is the sole business activity of the Company and is the Company’s reportable segment under the requirements of ASC 280, Segment Reporting (“ASC 280”). Until its sale, Fathom Events was an operating segment under ASC 280, but did not meet the annual quantitative thresholds for segment reporting. The Company does not evaluate its segments on a fully allocated cost basis, nor does the Company track segment assets separately. Therefore, the measurement of segment operating income net of direct expenses presented herein is not prepared on the same basis as operating income in the unaudited Condensed Consolidated Statements of Income and the results are not indicative of what segment results of operations would have been had it been operated on a fully allocated cost basis. The Company cautions that it would be inappropriate to assume that unallocated operating costs are incurred proportional to segment revenue or any directly identifiable segment expenses. Refer to Note 9—Segment Reporting. | ||||||
Concentration of Credit Risk and Significant Customers— Bad debts are provided for using the allowance for doubtful accounts method based on historical experience and management’s evaluation of outstanding receivables at the end of the period. Receivables are written off when management determines amounts are uncollectible. Trade accounts receivable are uncollateralized and represent a large number of geographically dispersed debtors. The collectability risk with respect to our national and regional advertising is reduced by dealing with founding members or large, national advertising agencies who have strong reputations in the advertising industry and clients with stable financial positions. We have smaller contracts with thousands of local clients that are not individually significant. As of September 25, 2014 and December 26, 2013, there were no advertising agency groups or individual customers through which the Company sources national advertising revenue representing more than 10% of the Company’s outstanding gross receivable balance. During the nine months ended September 25, 2014, revenue related to NCM LLC’s founding members’ beverage supplier accounted for 10.4% of total revenue. During the three months ended September 25, 2014 and the three and nine months ended September 26, 2013, there were no customers that accounted for more than 10% of revenue. | ||||||
Share-Based Compensation—The Company has issued stock options, restricted stock and restricted stock units to its employees and independent directors. In 2014 and 2013, the Company did not grant stock options. Restricted stock and restricted stock units granted prior to 2013 vest upon the achievement of Company performance measures and service conditions. In 2013, the Company granted restricted stock and restricted stock units that vest upon the achievement of Company performance measures and service conditions, or only service conditions, depending on the title of the employee. In 2014, restricted stock grants for Company officers vest upon the achievement of Company performance measures and service conditions, or only service conditions, while non-officer grants vest only upon the achievement of service conditions. Compensation expense of restricted stock that vests upon the achievement of Company performance measures is based on management’s financial projections and the probability of achieving the projections, which require considerable judgment. A cumulative adjustment is recorded to share-based compensation expense in periods that management changes its estimate of the number of shares expected to vest. Ultimately, the Company adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. Dividends are accrued when declared on unvested restricted stock that is expected to vest and are only paid with respect to shares that actually vest. During the three and nine months ended September 25, 2014 and the three and nine months ended September 26, 2013, 1,930, 253,590, 1,000, and 360,258 shares of restricted stock and restricted stock units vested. During the three and nine months ended September 25, 2014, 3,605 and 56,052 stock options were exercised at a weighted average exercise price of $11.54 and $13.58 per share, respectively, and during the three and nine months ended September 26, 2013, 612,585 and 1,249,066 stock options were exercised at a weighted average exercise price of $14.94 and $13.23 per share, respectively. | ||||||
In connection with the Company’s March 2014 special cash dividend of $0.50 per share and pursuant to the antidilution adjustment terms of the Company’s Equity Incentive Plan, the exercise price and the number of shares of common stock subject to options held by the Company’s employees were adjusted to prevent dilution and restore their economic value that existed immediately before the special dividend. The antidilution adjustments made with respect to such options resulted in a decrease in the range of exercise prices from $5.35 - $24.68 per share to $5.18 - $23.90 per share and an increase in the aggregate number of shares issuable upon exercise of such options by 98,589 shares, or 3.3%, of previously outstanding options. The number of shares authorized under the Equity Incentive Plan increased by an equivalent number of shares. There were no accounting consequences for the changes made to reduce the exercise prices and increase the number of underlying options as a result of the special cash dividend because the aggregate fair values of the awards immediately before and after the modifications were the same. | ||||||
Consolidation— NCM, Inc. consolidates the accounts of NCM LLC under the provision of ASC 810, Consolidation (“ASC 810”). Under ASC 810, a managing member of a limited liability company (“LLC”) is presumed to control the LLC, unless the non-managing members have the right to dissolve the entity or remove the managing member without cause, or if the non-managing members have substantive participating rights. The non-managing members of NCM LLC do not have dissolution rights or removal rights. NCM, Inc. has evaluated the provisions of the NCM LLC membership agreement and has concluded that the various rights of the non-managing members are not substantive participation rights under ASC 810, as they do not limit NCM, Inc.’s ability to make decisions in the ordinary course of business. | ||||||
The following table presents the changes in NCM, Inc.’s equity resulting from net income attributable to NCM, Inc. and transfers to or from noncontrolling interests (in millions): | ||||||
Nine Months Ended | ||||||
25-Sep-14 | 26-Sep-13 | |||||
Net income attributable to NCM, Inc. | $ | 5.3 | $ | 22.2 | ||
NCM LLC equity issued for purchase of intangible asset | 7.5 | 73.2 | ||||
Income tax and other impacts of subsidiary ownership changes | -2 | -18.2 | ||||
Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests | $ | 10.8 | $ | 77.2 | ||
Income Taxes—Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740, Income Taxes. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||
The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized, which will be assessed on an on-going basis. In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities. The Company follows ASC 740-10-25, which requires the use of a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. Only tax positions that meet the more likely than not recognition threshold are recognized. | ||||||
Recent Accounting Pronouncements | ||||||
In March 2014, the Emerging Issues Task Force (“EITF”) reached a final consensus on Issue 13-D, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period (“EITF 13-D”). Under EITF 13-D, a performance target that can be achieved after the requisite service period should be treated as a performance condition that affects vesting, rather than a condition that affects grant date fair value. Compensation cost is recognized over the requisite service period if it is probable that the performance condition will be achieved. If necessary, compensation cost is subsequently adjusted, to reflect those awards that ultimately vest. EITF 13-D will be effective, on a prospective basis, for the Company during its first quarter of 2016, with early adoption permitted. The adoption of this standard is not anticipated to have a material impact on the Company's unaudited Condensed Consolidated Financial Statements or notes thereto. | ||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This guidance will be effective beginning in fiscal year 2017 and early adoption is not permitted. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its unaudited Condensed Consolidated Financial Statements or notes thereto, as well as which transition method it intends to use. | ||||||
In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements - Going Concern (“ASU 2014-15”). ASU 2014-15 requires that management evaluate at each annual and interim reporting period whether there is a substantial doubt about an entity’s ability to continue as a going concern within one year of the date that the financial statements are issued. ASU 2014-15 will be effective for fiscal years and interim periods beginning after December 15, 2016 and early application is permitted. The Company does not expect that the application of ASU 2014-15 will have an impact on the unaudited Condensed Consolidated Financial Statements or notes thereto. | ||||||
The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its unaudited Condensed Consolidated Financial Statements. | ||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||
Sep. 25, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
2. EARNINGS per share | |||||||||||||
Basic earnings per share are computed on the basis of the weighted average number of common shares outstanding. Diluted earnings per share is computed on the basis of the weighted average number of common shares outstanding plus the effect of potentially dilutive common stock options, and restricted stock using the treasury stock method. The components of basic and diluted earnings per NCM, Inc. share are as follows: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | ||||||||||
Net income attributable to NCM, Inc. (in millions) | $ | 4.8 | $ | 13.7 | $ | 5.3 | $ | 22.2 | |||||
Weighted average shares outstanding: | |||||||||||||
Basic | 58,744,395 | 56,027,288 | 58,695,073 | 55,233,875 | |||||||||
Add: Dilutive effect of stock options and restricted stock | 299,374 | 847,953 | 292,872 | 630,596 | |||||||||
Diluted | 59,043,769 | 56,875,241 | 58,987,945 | 55,864,471 | |||||||||
Income per NCM, Inc. share: | |||||||||||||
Basic | $ | 0.08 | $ | 0.24 | $ | 0.09 | $ | 0.40 | |||||
Diluted | $ | 0.08 | $ | 0.24 | $ | 0.09 | $ | 0.40 | |||||
The effect of 69,543,579, 66,953,757, 69,220,792 and 62,806,362 exchangeable NCM LLC common units held by the founding members for the three months ended September 25, 2014 and September 26, 2013 and the nine months ended September 25, 2014 and September 26, 2013, respectively, have been excluded from the calculation of diluted weighted average shares and earnings per NCM, Inc. share as they were antidilutive. NCM LLC common units do not participate in NCM, Inc. dividends. In addition, there were 10,125, 9,533, 97,767 and 36,923 stock options and non-vested (restricted) shares for the three months ended September 25, 2014 and September 26, 2013 and the nine months ended September 25, 2014 and September 26, 2013, respectively, excluded from the calculation as they were antidilutive, primarily because exercise prices were above the average market value. | |||||||||||||
Intangible_Assets
Intangible Assets | 9 Months Ended |
Sep. 25, 2014 | |
Intangible Assets [Abstract] | ' |
Intangible Assets | ' |
3. Intangible assets | |
In accordance with NCM LLC’s Common Unit Adjustment Agreement with its founding members, on an annual basis NCM LLC determines the amount of common membership units to be issued to or returned by the founding members based on theatre additions or dispositions during the previous year. During the first quarter of 2014 and 2013, NCM LLC issued 1,087,911 and 4,536,014 common membership units to its founding members, respectively, for the rights to exclusive access to net new theatre screens and attendees added by the founding members to NCM LLC’s network during the previous year. NCM LLC recorded a net intangible asset of $16.4 million and $69.0 million during the first quarter of 2014 and 2013, respectively, as a result of the Common Unit Adjustments. | |
In addition, NCM LLC’s Common Unit Adjustment Agreement requires that a Common Unit Adjustment occur for a specific founding member if its acquisition or disposition of theatres, in a single transaction or cumulatively since the most recent Common Unit Adjustment, results in an attendance increase or decrease in excess of two percent of the annual total attendance at the prior date. If an existing on-screen advertising agreement with an alternative provider is in place with respect to any acquired theatres, the founding members may elect to receive common membership units related to those encumbered theatres in connection with the Common Unit Adjustment. If the founding members make this election, they are required to make payments on a quarterly basis in arrears in accordance with certain run-out provisions pursuant to the ESAs (“integration payments”). During the three months ended September 25, 2014 and September 26, 2013 and the nine months ended September 25, 2014 and September 26, 2013, respectively, we recorded a reduction to net intangible assets of $0.6 million, $1.0 million, $1.4 million and $2.1 million related to integration payments due from AMC and Cinemark related to their acquisitions of theatres from Rave Cinemas that are encumbered by an existing on-screen advertising agreement with an alternative provider. During the three months ended September 25, 2014 and September 26, 2013 and the nine months ended September 25, 2014 and September 26, 2013, AMC and Cinemark paid a total of $0.6 million, $0.9 million, $1.5 million and $1.1 million, respectively, in integration payments. | |
The Company’s intangible assets with its founding members are recorded at the fair market value of NCM, Inc.’s publicly traded stock as of the date on which the common membership units were issued. The NCM LLC common membership units are fully convertible into NCM, Inc.’s common stock. In addition, the Company records intangible assets for up-front fees paid to network affiliates upon commencement of a network affiliate agreement. The Company’s intangible assets have a finite useful life and the Company amortizes the assets over the remaining useful life corresponding with the ESAs or the term of the network affiliate agreement. If common membership units are issued to a founding member for newly acquired theatres that are subject to an existing on-screen advertising agreement with an alternative provider, the amortization of the intangible asset commences after the existing agreement expires and NCM LLC can utilize the theatres for all of its services. Integration payments are calculated based upon the advertising cash flow that the Company would have generated if it had exclusive access to sell advertising in the theatres with pre-existing advertising agreements. | |
RelatedParty_Transactions
Related-Party Transactions | 9 Months Ended | ||||||||||||
Sep. 25, 2014 | |||||||||||||
Related-Party Transactions [Abstract] | ' | ||||||||||||
Related-Party Transactions | ' | ||||||||||||
4. RELATED PARTY TRANSACTIONS | |||||||||||||
Founding Member Transactions –Following is a summary of the transactions between the Company and the founding members (in millions): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Included in the Condensed Consolidated Statements of Income: | 25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | |||||||||
Revenue: | |||||||||||||
Beverage concessionaire revenue (included in advertising revenue) (1) | $ | 9.0 | $ | 11.5 | $ | 28.2 | $ | 31.5 | |||||
Advertising inventory revenue (included in advertising revenue) (2) | 0.1 | - | 0.2 | 0.1 | |||||||||
Operating expenses: | |||||||||||||
Theatre access fee (3) | 17.0 | 18.7 | 52.3 | 52.4 | |||||||||
Revenue share from Fathom Events (included in Fathom Events operating costs) (4) | - | 1.3 | - | 3.0 | |||||||||
Purchase of movie tickets and concession products and rental of theatre space (included in Fathom Events operating costs) (5) | - | - | - | 0.3 | |||||||||
Purchase of movie tickets and concession products and rental of theatre space (included in selling and marketing costs) (6) | 0.2 | 0.3 | 0.7 | 1.0 | |||||||||
Purchase of movie tickets and concession products and rental of theatre space (included in other administrative and other costs) | - | - | 0.1 | - | |||||||||
Non-operating expenses: | |||||||||||||
Interest income from notes receivable (included in interest income) (7) | 0.3 | - | 0.9 | - | |||||||||
-1 | For the three months ended September 25, 2014 and September 26, 2013, the founding members purchased 60 seconds of on-screen advertising time (with a right to purchase up to 90 seconds) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a rate specified by the ESA at a 30 second equivalent cost per thousand (“CPM”). | ||||||||||||
-2 | The value of such purchases is calculated by reference to NCM LLC’s advertising rate card. | ||||||||||||
-3 | Comprised of payments per theatre attendee, payments per digital screen with respect to the founding member theatres included in the Company’s network and payments for access to higher quality digital cinema equipment. | ||||||||||||
-4 | Prior to the sale of Fathom Events on December 26, 2013, these payments were at rates (percentage of event revenue) included in the previous ESAs based on the nature of the event. | ||||||||||||
-5 | Prior to the sale of Fathom Events on December 26, 2013, these were used primarily for marketing resale to Fathom Events customers. | ||||||||||||
-6 | Used primarily for marketing to NCM LLC’s advertising clients. | ||||||||||||
-7 | On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (AC JV, LLC) owned 32% by each of the founding members and 4% by NCM LLC. In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member). The notes bear interest at a fixed rate of 5.0% per annum, compounded annually. Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing. | ||||||||||||
As of | |||||||||||||
Included in the Condensed Consolidated Balance Sheets: | 25-Sep-14 | 26-Dec-13 | |||||||||||
Purchase of movie tickets and concession products (included in Prepaid expenses) (1) | $ | 0.2 | $ | - | |||||||||
Current portion of notes receivable (2) | 4.2 | 4.2 | |||||||||||
Long-term portion of notes receivable (2) | 20.8 | 20.8 | |||||||||||
Interest receivable on notes receivable (included in other current assets) (2) | 0.9 | - | |||||||||||
Common unit adjustments and integration payments, net of amortization (included in intangible assets) (3) | 463.8 | 463.4 | |||||||||||
Current payable to founding members under tax receivable agreement (4) | 21.7 | 28.6 | |||||||||||
Long-term payable to founding members under tax receivable agreement (4) | 142.7 | 144.0 | |||||||||||
-1 | Used primarily for marketing to NCM LLC’s advertising clients. | ||||||||||||
-2 | Refer to the discussion of notes receivable from the founding members above. | ||||||||||||
-3 | Refer to Note 3—Intangible Assets for further information on common unit adjustments and integration payments. | ||||||||||||
-4 | The Company paid the founding members $25.1 million in the first quarter of 2014, of which $6.7 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $18.4 million was for the 2013 tax year. | ||||||||||||
At the date of the Company’s Initial Public Offering (“IPO”), we were granted a perpetual, royalty-free license from NCM LLC’s founding members to use certain proprietary software that existed at the time for the delivery of digital advertising and other content through our DCN to screens in the U.S. We have made improvements to this software since the IPO date and we own those improvements, except for improvements that were developed jointly by us and NCM LLC’s founding members, if any. | |||||||||||||
Pursuant to the terms of the NCM LLC Operating Agreement in place since the completion of the Company’s IPO, NCM LLC is required to make mandatory distributions on a proportionate basis to its members of available cash, as defined in the NCM LLC Operating Agreement, on a quarterly basis in arrears. Mandatory distributions for the three and nine months ended September 25, 2014 and September 26, 2013 are as follows (in millions): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | ||||||||||
AMC | $ | 6.0 | $ | 10.6 | $ | 12.8 | $ | 21.2 | |||||
Cinemark | 7.7 | 13.3 | 16.4 | 26.0 | |||||||||
Regal | 8.1 | 12.2 | 17.2 | 25.7 | |||||||||
NCM, Inc. | 18.5 | 32.3 | 39.4 | 63.1 | |||||||||
Total | $ | 40.3 | $ | 68.4 | $ | 85.8 | $ | 136.0 | |||||
The mandatory distributions of available cash by NCM LLC to its founding members for the three months ended September 25, 2014 of $21.8 million is included in amounts due to founding members on the unaudited Condensed Consolidated Balance Sheets as of September 25, 2014 and will be made in the fourth quarter of 2014. | |||||||||||||
Amounts due to founding members as of September 25, 2014 were comprised of the following (in millions): | |||||||||||||
AMC | Cinemark | Regal | Total | ||||||||||
Theatre access fees, net of beverage revenues | $ | 0.7 | $ | 0.7 | $ | 1.1 | $ | 2.5 | |||||
Cost and other reimbursement | -0.4 | -0.2 | - | -0.6 | |||||||||
Distributions payable to founding members | 6.0 | 7.7 | 8.1 | 21.8 | |||||||||
Total | $ | 6.3 | $ | 8.2 | $ | 9.2 | $ | 23.7 | |||||
Amounts due to founding members as of December 26, 2013 were comprised of the following (in millions): | |||||||||||||
AMC | Cinemark | Regal | Total | ||||||||||
Theatre access fees, net of beverage revenues | $ | 0.6 | $ | 0.7 | $ | 1.1 | $ | 2.4 | |||||
Cost and other reimbursement | -2 | -0.7 | -0.6 | -3.3 | |||||||||
Distributions payable to founding members | 8.7 | 10.9 | 11.4 | 31.0 | |||||||||
Total | $ | 7.3 | $ | 10.9 | $ | 11.9 | $ | 30.1 | |||||
AC JV, LLC Transactions –Following is a summary of the transactions between NCM LLC and AC JV, LLC (in millions): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Included in the Condensed Consolidated Statements of Income: | 25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | |||||||||
Transition services (included in network costs) (1) | $ | 0.1 | $ | - | $ | 0.2 | $ | - | |||||
Equity in earnings of non-consolidated entities (included in other non-operating expense) (2) | - | - | 0.1 | - | |||||||||
-1 | In connection with the sale of Fathom Events, NCM LLC entered into a transition services agreement to provide certain corporate overhead services for a fee and reimbursement for the use of facilities and certain services including creative, technical event management and event management for the newly formed limited liability company for a period of nine months following the closing. These fees received by NCM LLC are included as an offset to network costs in the unaudited Condensed Consolidated Statements of Income. | ||||||||||||
-2 | The Company accounts for its investment in AC JV, LLC under the equity method of accounting in accordance with ASC 323-30, Investments—Equity Method and Joint Ventures (“ASC 323-30”) because AC JV, LLC is a limited liability company with the characteristics of a limited partnership and ASC 323-30 requires the use of equity method accounting unless the Company’s interest is so minor that it would have virtually no influence over partnership operating and financial policies. The Company concluded that its interest was more than minor under the accounting guidance despite the fact that NCM LLC does not have a representative on AC JV, LLC’s Board of Directors or any voting, consent or blocking rights with respect to the governance or operations of AC JV, LLC. | ||||||||||||
As of | |||||||||||||
Included in the Condensed Consolidated Balance Sheets: | 25-Sep-14 | 26-Dec-13 | |||||||||||
Amounts due to AC JV, LLC (included in other current liabilities) (1) | $ | 3.3 | $ | - | |||||||||
Investment in AC JV, LLC (included in other investments) (2) | 1.1 | 1.1 | |||||||||||
-1 | As described above, NCM LLC entered into a transition services agreement with AC JV, LLC for reimbursement of certain expenses. NCM LLC continued to perform back office accounting and, as such, these amounts primarily represent the settlement of AC JV, LLC’s revenue and expenses. | ||||||||||||
-2 | Refer to the discussion of the investment in AC JV, LLC above. | ||||||||||||
Related Party Affiliates — NCM LLC enters into network affiliate agreements with network affiliates for NCM LLC to provide in-theatre advertising at theatre locations that are owned by companies that are affiliates of certain of the founding members or directors of NCM, Inc. Related party affiliate agreements are entered into at terms that are similar to those of the Company’s other network affiliates. | |||||||||||||
Following is a summary of advertising operating costs in the unaudited Condensed Consolidated Statements of Income between the Company and its related party affiliates (in millions): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Related Party Affiliate | September 25, | September 26, | September 25, | September 26, | |||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Starplex (1) | $ | 1.2 | $ | 1.0 | $ | 2.5 | $ | 2.2 | |||||
Other | - | 0.1 | 0.1 | 0.4 | |||||||||
Total | $ | 1.2 | $ | 1.1 | $ | 2.6 | $ | 2.6 | |||||
Following is a summary of the accounts payable balance between the Company and its related party affiliates included in the unaudited Condensed Consolidated Balance Sheets (in millions): | |||||||||||||
As of | |||||||||||||
Related Party Affiliate | 25-Sep-14 | 26-Dec-13 | |||||||||||
Starplex (1) | $ | 0.8 | $ | 0.7 | |||||||||
Other | 0.1 | 0.1 | |||||||||||
Total | $ | 0.9 | $ | 0.8 | |||||||||
-1 | Starplex Operating L.P. (“Starplex”) is an affiliate of one of NCM, Inc.’s directors. | ||||||||||||
Other Transactions — NCM LLC has an agreement with an interactive media company to sell some of its online inventory. One of NCM, Inc.’s directors is also a director of this media company. During the three months ended September 25, 2014 and September 26, 2013 and the nine months ended September 25, 2014 and September 26, 2013, respectively, this company generated approximately $0.0 million, $0.1 million, $0.1 million and $0.2 million in revenue for NCM LLC and there was approximately $0.1 million and $0.2 million of accounts receivable due from this company as of September 25, 2014 and December 26, 2013, respectively. | |||||||||||||
NCM LLC has an agreement with AEG Live, an affiliate of The Anschutz Corporation, for AEG Live to showcase musical artists in our FirstLook preshow. The Anschutz Corporation is a wholly-owned subsidiary of the Anschutz Company, which is the controlling stockholder of Regal. During the three and nine months ended September 25, 2014, NCM LLC received approximately $0.2 million and $0.2 million, respectively, in revenue from AEG Live and as of September 25, 2014, had $0.2 million of accounts receivable from AEG Live. | |||||||||||||
Borrowings
Borrowings | 9 Months Ended | ||||||||||
Sep. 25, 2014 | |||||||||||
Borrowings [Abstract] | ' | ||||||||||
Borrowings | ' | ||||||||||
5. BORROWINGS | |||||||||||
The following table summarizes NCM LLC’s total outstanding debt as of September 25, 2014 and December 26, 2013 and the significant terms of its borrowing arrangements (in millions): | |||||||||||
Outstanding Balance as of | |||||||||||
Borrowings | 25-Sep-14 | December 26, | Maturity | Interest Rate | |||||||
2013 | Date | ||||||||||
Revolving Credit Facility | $ | 25.0 | $ | 20.0 | November 26, 2019 (1) | -2 | |||||
Term Loans | 270.0 | 270.0 | 26-Nov-19 | -2 | |||||||
Senior Unsecured Notes | 200.0 | 200.0 | 15-Jul-21 | 7.88% | |||||||
Senior Secured Notes | 400.0 | 400.0 | 15-Apr-22 | 6.00% | |||||||
Total | $ | 895.0 | $ | 890.0 | |||||||
Less: current portion of long-term debt | -14 | -14 | |||||||||
Long-term debt, less current portion | $ | 881.0 | $ | 876.0 | |||||||
(1)A portion of the revolving credit facility has a maturity date of December 31, 2014, as described in further detail below. | |||||||||||
(2)The interest rates on the revolving credit facility and term loan are described below. | |||||||||||
Senior Secured Credit Facility— As of September 25, 2014, NCM LLC’s senior secured credit facility consisted of a $149.0 million revolving credit facility and a $270.0 million term loan. On June 18, 2014, NCM LLC entered into an incremental amendment of its senior secured credit facility whereby the revolving credit facility was increased by $25.0 million from $124.0 million to $149.0 million. In addition, on July 2, 2014, NCM LLC entered into an amendment of its senior secured credit facility whereby the maturity date applicable to $135.0 million of the revolving credit facility was extended by two years to November 26, 2019, which corresponds to the maturity date of the $270 million term loans. The maturity date applicable to the remaining $14.0 million of the revolving credit facility continues to be December 31, 2014. The Amendment also contains certain amendments (“Conditional Amendments”) to the senior secured credit facility that will only be effective upon the contribution of Screenvision assets and NCM, Inc. debt to NCM LLC. Although it is under no obligation to do so, upon approval of NCM, Inc.’s Board of Directors and NCM LLC’s founding members, NCM, Inc. may contribute the Screenvision assets and the new NCM, Inc. debt facility to NCM LLC in exchange for NCM LLC common membership units. To allow for this potential contribution to NCM LLC, the Conditional Amendments include an increase in the amount of incremental senior secured indebtedness permitted by the Amended Credit Facility from $160 million to $250 million. If the Screenvision contribution to NCM LLC does not occur by April 1, 2015, the Conditional Amendments will not become effective and lender consent for the Conditional Amendments will be immediately and automatically revoked. | |||||||||||
Revolving Credit Facility— The revolving credit facility portion of NCM LLC’s total borrowings is available, subject to certain conditions, for general corporate purposes of NCM LLC in the ordinary course of business and for other transactions permitted under the senior secured credit facility, and a portion is available for letters of credit. | |||||||||||
As of September 25, 2014, NCM LLC’s total availability under the revolving credit facility was $149.0 million. The unused line fee is 0.50% per annum. Of the total available, $14.0 million outstanding principal of the revolving credit facility will not be repaid in connection with any future prepayments of the revolving credit facility amounts. This portion of the revolving credit facility will be paid in full by NCM LLC, along with any accrued and unpaid fees and interest, by December 31, 2014. The maturity date applicable to any remaining outstanding revolving credit facility principal is November 26, 2019. | |||||||||||
Borrowings under the revolving credit facility bear interest at NCM LLC’s option of either the LIBOR index plus an applicable margin or the base rate (Prime Rate or the Federal Funds Effective Rate, as defined in the senior secured credit facility) plus an applicable margin. The applicable margin for the revolving credit facility is determined quarterly and is subject to adjustment based upon a consolidated net senior secured leverage ratio for NCM LLC (the ratio of secured funded debt less unrestricted cash and cash equivalents, over a non-GAAP measure defined in the senior secured credit facility). The applicable margins on the $135.0 million portion of the revolving credit facility are the LIBOR index plus 2.00% or the base rate plus 1.00%. The margins on the $14.0 million portion of the revolving credit facility discussed above are at the LIBOR index plus 1.50% or the base rate plus 0.50%. The weighted-average interest rate on the outstanding balance on the revolving credit facility as of September 25, 2014 was 1.88%. | |||||||||||
Term Loans— The interest rate on the term loans is a rate chosen at NCM LLC’s option of either the LIBOR index plus 2.75% or the base rate (Prime Rate or the Federal Funds Effective Rate, as defined in the senior secured credit facility) plus 1.75%. The weighted-average interest rate on the term loans as of September 25, 2014 was 2.91%. Interest on the term loans is currently paid monthly. | |||||||||||
The senior secured credit facility contains a number of covenants and financial ratio requirements, with which NCM LLC was in compliance as of September 25, 2014, including maintaining a consolidated net senior secured leverage ratio of equal to or less than 6.5 times on a quarterly basis. In addition, there are no borrower distribution restrictions as long as NCM LLC’s consolidated net senior secured leverage ratio is below 6.5 times and NCM LLC is in compliance with its debt covenants. As of September 25, 2014, NCM LLC’s consolidated net senior secured leverage ratio was 3.6 times (versus the covenant of 6.5 times). | |||||||||||
Senior Unsecured Notes due 2021— On July 5, 2011, NCM LLC completed a private placement of $200.0 million in aggregate principal amount of 7.875% Senior Unsecured Notes (“Senior Unsecured Notes”) for which the registered exchange offering was completed on September 22, 2011. The Senior Unsecured Notes pay interest semi-annually in arrears on January 15 and July 15 of each year, which commenced January 15, 2012. The notes are subordinated to all existing and future secured debt, including indebtedness under NCM LLC’s existing senior secured credit facility and the Senior Secured Notes defined below. The Senior Unsecured Notes contain certain non-maintenance covenants with which NCM LLC is in compliance. | |||||||||||
Senior Secured Notes due 2022— On April 27, 2012, NCM LLC completed a private placement of $400.0 million in aggregate principal amount of 6.00% Senior Secured Notes (the “Senior Secured Notes”) for which the registered exchange offering was completed on November 26, 2012. The Senior Secured Notes pay interest semi-annually in arrears on April 15 and October 15 of each year, which commenced October 15, 2012. The Senior Secured Notes are senior secured obligations of NCM LLC, rank the same as NCM LLC’s senior secured credit facility, subject to certain exceptions, and share in the same collateral that secures NCM LLC’s obligations under the senior secured credit facility. The Senior Secured Notes contain certain non-maintenance covenants with which NCM LLC is in compliance. | |||||||||||
NCM, Inc. Commitment Letter— On July 2, 2014, in contemplation of the Merger with Screenvision, NCM, Inc. entered into a Commitment and Engagement Letter (the “Commitment Letter”) with certain existing NCM LLC revolving credit facility lenders. Under the Commitment Letter, subject to certain conditions, the lenders committed to make a term loan in an aggregate principal amount of $250 million to fund the Screenvision merger and related expenses. This term loan is expected to finance the $225 million portion of the Merger consideration that will be paid in cash, along with fees and expenses incurred in connection with the term loan and the Merger. The term loan will mature on the second anniversary of the funding of the term loan. NCM, Inc. has the right to contribute the Screenvision assets and the $250 million loan to NCM LLC, at which point, the conditional amendments to the amended senior secured credit facility described above will become effective. | |||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 25, 2014 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
6. COMMITMENTS AND CONTINGENCIES | |
Legal Actions— The Company is subject to claims and legal actions in the ordinary course of business. The Company believes such claims will not have a material effect on its financial position, results of operations or cash flows. | |
Minimum Revenue Guarantees― As part of the network affiliate agreements entered into in the ordinary course of business under which the Company sells advertising for display in various network affiliate theatre chains, the Company has agreed to certain minimum revenue guarantees on a per attendee basis. If a network affiliate achieves the attendance set forth in their respective agreement, the Company has guaranteed minimum revenue for the network affiliate per attendee if such amount paid under the revenue share arrangement is less than its guaranteed amount. The amount and term varies for each network affiliate, but terms range from three to 20 years, prior to any renewal periods of which some are at the option of the Company. During October 2014, the Company offered to all of its network affiliates an extension of their existing agreements by five years, with the per-attendee guarantee and other terms remaining the same as those on the last year of their original term. None of these agreements have yet been signed. As of September 25, 2014, the maximum potential amount of future payments the Company could be required to make pursuant to the minimum revenue guarantees is $35.4 million over the remaining terms of the network affiliate agreements, which calculation does not include any potential extensions offered subsequent to September 25, 2014. As of September 25, 2014 and December 26, 2013, the Company had no liabilities recorded for these obligations as such guarantees are less than the expected share of revenue paid to the affiliate. | |
Income Taxes― The Company is subject to taxation in the U.S. and various states. As of September 25, 2014 and December 26, 2013, there was no material liability or expense for the periods then ended recorded for payment of interest and penalties associated with uncertain tax positions or material unrecognized tax positions and the Company’s unrecognized tax benefits were not material. | |
Merger Termination Payment – As described in Note 1 – The Company, on May 5, 2014, the Company entered into the Merger Agreement to merge with Screenvision. Consummation of the Merger is subject to clearance under the HSR Act, as well, as other customary closing conditions. If prior to May 5, 2015 (or 90 days thereafter if extended by the Company or Screenvision), certain conditions related to the HSR process are not fulfilled, the Merger is prohibited by law or a final non-appealable government order, or if we materially breach our representations or covenants such that the closing conditions in the Merger Agreement cannot be satisfied, Screenvision may be able to terminate the Merger Agreement and, upon termination, we may be required to pay a termination fee of approximately $28.8 million. NCM LLC would indemnify NCM, Inc. and bear a pro rata portion of this fee based upon NCM, Inc.’s ownership percentage in NCM LLC, with NCM LLC’s founding members bearing the remainder of the fee in accordance with their ownership percentage in NCM LLC. If Screenvision or its affiliates materially breach their representations or covenants such that the closing conditions in the Merger Agreement cannot be satisfied, they will be required to pay us a termination fee of $10 million, and if Screenvision is subsequently sold within one year of the termination, an additional amount equal to the amount by which the sale proceeds are greater than $385 million will be paid to us up to a maximum of $28.8 million (including the $10 million). As of September 25, 2014, the Company did not have a liability recorded for this termination fee as it does not believe payment to be probable. On November 3, 2014, DOJ filed an antitrust lawsuit seeking to enjoin the proposed merger between NCM, Inc. and Screenvision. The Company and Screenvision intend to defend their proposed merger. Refer to Note 10 – Subsequent Events for further information. | |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||
Sep. 25, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
7. Fair Value MeasurementS | |||||||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | |||||||||||||
Level 1—Quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | |||||||||||||
Non-Recurring Measurements— Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These assets include long-lived assets, intangible assets, cost and equity method investments, notes receivable and borrowings. | |||||||||||||
Long-Lived Assets, Intangible Assets, Other Investments and Notes Receivable—The Company regularly reviews long-lived assets (primarily property, plant and equipment), intangible assets, investments accounted for under the cost or equity method and notes receivable for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. When the estimated fair value is determined to be lower than the carrying value of the asset, an impairment charge is recorded to write the asset down to its estimated fair value. | |||||||||||||
As of September 25, 2014 and December 26, 2013, the Company had other investments of $1.1 million, which was comprised of the Company’s investment in AC JV, LLC. As of December 26, 2013, this investment was valued using comparative market multiples. As the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, we have classified the assets as Level 3 in the fair value hierarchy. The fair value of the investments was not estimated as of September 25, 2014 as there were no identified events or changes in circumstances that had a significant adverse effect on the fair value of the investments, and it is not practicable to do so because the equity securities are not in a publicly traded company. | |||||||||||||
As of September 25, 2014 and December 26, 2013, the Company had notes receivable totaling $25.0 million from its founding members related to the sale of Fathom Events, as described in Note 4—Related Party Transactions. As of December 26, 2013, these notes were valued using comparative market multiples and are classified as Level 3 in the fair value hierarchy as the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs. The fair value of the notes was not estimated as of September 25, 2014 as there were no identified events or changes in circumstances that had a significant adverse effect on the fair value of the notes receivable. | |||||||||||||
Borrowings—The carrying amount of the revolving credit facility is considered a reasonable estimate of fair value due to its floating-rate terms. The estimated fair values of the Company’s financial instruments where carrying values do not approximate fair value are as follows (in millions): | |||||||||||||
As of September 25, 2014 | As of December 26, 2013 | ||||||||||||
Carrying Value | Fair Value (1) | Carrying Value | Fair Value (1) | ||||||||||
Term Loans | $ | 270.0 | $ | 259.9 | $ | 270.0 | $ | 269.5 | |||||
Senior Unsecured Notes | 200.0 | 214.1 | 200.0 | 220.4 | |||||||||
Senior Secured Notes | 400.0 | 404.8 | 400.0 | 414.0 | |||||||||
___________ | |||||||||||||
(1) The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2. | |||||||||||||
Recurring Measurements— The fair values of the Company’s assets and liabilities measured on a recurring basis pursuant to ASC 820-10, Fair Value Measurements and Disclosures are as follows (in millions): | |||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
As of | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
25-Sep-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
ASSETS: | |||||||||||||
Cash equivalents (1) | $ | 10.0 | $ | 6.5 | $ | 3.5 | $ | - | |||||
Short-term marketable securities (2) | 20.3 | 8.4 | 11.9 | - | |||||||||
Long-term marketable securities (2) | 39.4 | 36.4 | 3.0 | - | |||||||||
Total assets | $ | 69.7 | $ | 51.3 | $ | 18.4 | $ | - | |||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
As of | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
26-Dec-13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
ASSETS: | |||||||||||||
Cash equivalents (1) | $ | 28.3 | $ | - | $ | 28.3 | $ | - | |||||
Short-term marketable securities (2) | 71.3 | 4.5 | 66.8 | - | |||||||||
Total assets | $ | 99.6 | $ | 4.5 | $ | 95.1 | $ | - | |||||
-1 | Cash Equivalents— The Company’s cash equivalents are carried at estimated fair value. Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts and commercial paper with original maturities of three months or less, which are classified as Level 2 and are valued as described below. | ||||||||||||
-2 | Short-Term and Long-Term Marketable Securities — The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds and commercial paper are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and nine months ended September 25, 2014 and September 26, 2013, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short-term marketable securities is based on the specific identification method. As of September 25, 2014 and December 26, 2013, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer. | ||||||||||||
The amortized cost basis, aggregate fair value and maturities of the marketable securities the Company held as of September 25, 2014 and December 26, 2013 are as follows: | |||||||||||||
As of September 25, 2014 | |||||||||||||
Amortized Cost Basis | Aggregate Fair Value | Maturities (1) (in years) | |||||||||||
(in millions) | (in millions) | ||||||||||||
MARKETABLE SECURITIES: | |||||||||||||
Short-term municipal bonds | $ | 8.3 | $ | 8.4 | 0.4 | ||||||||
Short-term commercial paper: | |||||||||||||
Financial | 3.4 | 3.4 | 0.3 | ||||||||||
Industrial | 3.3 | 3.2 | 0.4 | ||||||||||
Utility | 3.0 | 3.0 | 0.4 | ||||||||||
Short-term certificates of deposit | 2.3 | 2.3 | 0.7 | ||||||||||
Total short-term marketable securities | 20.3 | 20.3 | |||||||||||
Long-term U.S. government treasury bonds | 5.1 | 5.1 | 3.0 | ||||||||||
Long-term municipal bonds | 0.8 | 0.8 | 1.3 | ||||||||||
Long-term U.S. government agency bonds | 30.5 | 30.5 | 3.7 | ||||||||||
Long-term certificates of deposit | 3.0 | 3.0 | 3.6 | ||||||||||
Total long-term marketable securities | 39.4 | 39.4 | |||||||||||
Total marketable securities | $ | 59.7 | $ | 59.7 | |||||||||
. | |||||||||||||
As of December 26, 2013 | |||||||||||||
Amortized Cost Basis | Aggregate Fair Value | Maturities (1) (in years) | |||||||||||
(in millions) | (in millions) | ||||||||||||
MARKETABLE SECURITIES: | |||||||||||||
Short-term municipal bonds | $ | 4.5 | $ | 4.5 | 0.2 | ||||||||
Short-term commercial paper: | |||||||||||||
Financial | 50.3 | 50.3 | 0.3 | ||||||||||
Industrial | 8.8 | 8.8 | 0.1 | ||||||||||
Utility | 7.7 | 7.7 | 0.1 | ||||||||||
Total marketable securities | $ | 71.3 | $ | 71.3 | |||||||||
____________ | |||||||||||||
-1 | Maturities— Securities available for sale include obligations with various contractual maturity dates some of which are greater than one year. The Company considers the securities to be liquid and convertible to cash within 30 days. | ||||||||||||
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging Activities | 9 Months Ended | ||||||||
Sep. 25, 2014 | |||||||||
Derivative Instruments And Hedging Activities [Abstract] | ' | ||||||||
Derivative Instruments And Hedging Activities | ' | ||||||||
8. derivative instruments and hedging activities | |||||||||
During 2012, NCM LLC terminated interest rate swap agreements that were used to hedge its interest rate risk associated with its term loan. Following the termination of the swap agreements, the variable interest rate on NCM LLC’s $270.0 million term loan is unhedged and as of September 25, 2014 and December 26, 2013, the Company did not have any outstanding derivative assets or liabilities. A portion of the breakage fees paid to terminate the swap agreements was for swaps in which the underlying debt remained outstanding. The balance in AOCI related to these swaps was fixed and is being amortized into earnings over the remaining life of the original interest rate swap agreement, or February 13, 2015, as long as the debt remains outstanding. The Company considered the guidance in ASC 815, Derivatives and Hedging which states that amounts in AOCI shall be reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. As of September 25, 2014, there was approximately $4.0 million outstanding related to these discontinued cash flow hedges which continues to be reported in AOCI and will be amortized on a straight-line basis into earnings in the next twelve months. | |||||||||
The changes in AOCI by component for the nine months ended September 25, 2014 and September 26, 2013 were as follows (in millions): | |||||||||
Nine Months Ended | |||||||||
September 25, | 26-Sep-13 | Income Statement Location | |||||||
2014 | |||||||||
Balance at beginning of period | $ | -3.2 | $ | -6.7 | |||||
Amounts reclassified from AOCI: | |||||||||
Amortization on discontinued cash flow hedges | 7.6 | 7.8 | Amortization of terminated derivatives | ||||||
Total amounts reclassified from AOCI | 7.6 | 7.8 | |||||||
Noncontrolling interest on reclassifications | -4.1 | -4.2 | |||||||
Tax effect on reclassifications | -1.4 | -1.4 | |||||||
Net other comprehensive income | 2.1 | 2.2 | |||||||
Impact of subsidiary ownership changes | - | 0.3 | |||||||
Balance at end of period | $ | -1.1 | $ | -4.2 | |||||
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||
Sep. 25, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Reporting | ' | ||||||||||||
9. segment reporting | |||||||||||||
Advertising revenue accounted for 100.0%, 94.4%, 100.0% and 93.6% of consolidated revenue for the three and nine months ended September 25, 2014 and September 26, 2013, respectively. The following tables present revenue less directly identifiable expenses to arrive at income before income taxes, net of direct expenses for the advertising reportable segment, the combined Fathom Events operating segments (disposed on December 26, 2013), and network, administrative and unallocated costs (in millions): | |||||||||||||
Three Months Ended September 25, 2014 | |||||||||||||
Advertising | Fathom Events (1) | Network, Administrative and Unallocated Costs | Consolidated | ||||||||||
Revenue | $ | 100.8 | $ | - | $ | - | $ | 100.8 | |||||
Operating costs | 23.5 | - | 4.4 | 27.9 | |||||||||
Selling and marketing costs | 14.4 | - | 0.3 | 14.7 | |||||||||
Administrative and other costs | 0.6 | - | 8.3 | 8.9 | |||||||||
Depreciation and amortization | - | - | 8.6 | 8.6 | |||||||||
Interest and other non-operating costs | - | - | 19.2 | 19.2 | |||||||||
Income (loss) before income taxes | $ | 62.3 | $ | - | $ | -40.8 | $ | 21.5 | |||||
Three Months Ended September 26, 2013 | |||||||||||||
Advertising | Fathom Events (1) | Network, Administrative and Unallocated Costs | Consolidated | ||||||||||
Revenue | $ | 127.6 | $ | 7.5 | $ | - | $ | 135.1 | |||||
Operating costs | 26.6 | 5.4 | 5.1 | 37.1 | |||||||||
Selling and marketing costs | 14.0 | 0.8 | 0.8 | 15.6 | |||||||||
Administrative and other costs | 0.7 | 0.2 | 6.9 | 7.8 | |||||||||
Depreciation and amortization | - | - | 7.2 | 7.2 | |||||||||
Interest and other non-operating costs | - | - | 18.7 | 18.7 | |||||||||
Income (loss) before income taxes | $ | 86.3 | $ | 1.1 | $ | -38.7 | $ | 48.7 | |||||
Nine Months Ended September 25, 2014 | |||||||||||||
Advertising | Fathom Events (1) | Network, Administrative and Unallocated Costs | Consolidated | ||||||||||
Revenue | $ | 270.9 | $ | - | $ | - | $ | 270.9 | |||||
Operating costs | 70.4 | - | 13.4 | 83.8 | |||||||||
Selling and marketing costs | 42.0 | - | 1.8 | 43.8 | |||||||||
Administrative and other costs | 2.1 | - | 23.2 | 25.3 | |||||||||
Depreciation and amortization | - | - | 24.2 | 24.2 | |||||||||
Interest and other non-operating costs | - | - | 56.9 | 56.9 | |||||||||
Income (loss) before income taxes | $ | 156.4 | $ | - | $ | -119.5 | $ | 36.9 | |||||
Nine Months Ended September 26, 2013 | |||||||||||||
Advertising | Fathom Events (1) | Network, Administrative and Unallocated Costs | Consolidated | ||||||||||
Revenue | $ | 318.2 | $ | 21.9 | $ | - | $ | 340.1 | |||||
Operating costs | 74.1 | 15.4 | 15.2 | 104.7 | |||||||||
Selling and marketing costs | 42.1 | 2.6 | 2.0 | 46.7 | |||||||||
Administrative and other costs | 1.7 | 0.6 | 20.6 | 22.9 | |||||||||
Depreciation and amortization | - | - | 18.8 | 18.8 | |||||||||
Interest and other non-operating costs | - | - | 57.8 | 57.8 | |||||||||
Income (loss) before income taxes | $ | 200.3 | $ | 3.3 | $ | -114.4 | $ | 89.2 | |||||
The following is a summary of revenues by category (in millions): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | ||||||||||
National advertising revenue | $ | 62.9 | $ | 91.1 | $ | 174.0 | $ | 226.0 | |||||
Local advertising revenue | 28.9 | 25.0 | 68.7 | 60.7 | |||||||||
Founding member advertising revenue from beverage concessionaire agreements | 9.0 | 11.5 | 28.2 | 31.5 | |||||||||
Fathom Consumer revenue (1) | - | 7.5 | - | 20.8 | |||||||||
Fathom Business revenue (1) | - | - | - | 1.1 | |||||||||
Total revenue | $ | 100.8 | $ | 135.1 | $ | 270.9 | $ | 340.1 | |||||
____________ | |||||||||||||
-1 | Fathom Events was sold on December 26, 2013 as discussed in Note 4—Related Party Transactions. | ||||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 25, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
10. SUBSEQUENT EVENTS | |
On October 29, 2014, the Company declared a cash dividend of $0.22 per share (approximately $12.9 million) on each share of the Company’s common stock (not including outstanding restricted stock which will accrue dividends until the shares vest) to stockholders of record on November 20, 2014 to be paid on December 5, 2014. | |
On November 3, 2014, the DOJ filed an antitrust lawsuit seeking to enjoin the proposed merger between NCM, Inc. and Screenvision. The Company and Screenvision intend to defend their proposed merger. If we are unsuccessful in our defense of the proposed merger prior to May 5, 2015 (or 90 days thereafter if extended by the Company or Screenvision), Screenvision may be able to terminate the Merger Agreement and, upon termination, we may be required to pay Screenvision a termination fee of approximately $28.8 million. NCM LLC would indemnify NCM, Inc. and bear a pro rata portion of this fee based upon NCM, Inc.’s ownership percentage in NCM LLC, with NCM LLC’s founding members bearing the remainder of the fee in accordance with their ownership percentage in NCM LLC. | |
The_Company_Policy
The Company (Policy) | 9 Months Ended | |||||
Sep. 25, 2014 | ||||||
The Company | ' | |||||
Basis Of Presentation | ' | |||||
Basis of Presentation | ||||||
The Company has prepared the unaudited Condensed Consolidated Financial Statements and related notes of NCM, Inc. in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures typically included in an annual report have been condensed or omitted for this quarterly report. Certain reclassifications have been made to the prior years’ financial statements to conform to the current presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. The balance sheet as of December 26, 2013 is derived from the audited financial statements of NCM, Inc. Therefore, the unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s annual report on Form 10-K filed for the fiscal year ended December 26, 2013. | ||||||
In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly in all material respects the financial position, results of operations and cash flows for all periods presented have been made. The Company’s business is seasonal and for this and other reasons operating results for interim periods may not be indicative of the Company’s full year results or future performance. As a result of the various related party agreements discussed in Note 4—Related Party Transactions, the operating results as presented are not necessarily indicative of the results that might have occurred if all agreements were with non-related third parties. | ||||||
Estimates | ' | |||||
Estimates— The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to the reserve for uncollectible accounts receivable, share-based compensation and income taxes. Actual results could differ from those estimates. | ||||||
Segment Reporting | ' | |||||
Segment Reporting— Subsequent to the sale of the Fathom business on December 26, 2013, the sale of advertising is the sole business activity of the Company and is the Company’s reportable segment under the requirements of ASC 280, Segment Reporting (“ASC 280”). Until its sale, Fathom Events was an operating segment under ASC 280, but did not meet the annual quantitative thresholds for segment reporting. The Company does not evaluate its segments on a fully allocated cost basis, nor does the Company track segment assets separately. Therefore, the measurement of segment operating income net of direct expenses presented herein is not prepared on the same basis as operating income in the unaudited Condensed Consolidated Statements of Income and the results are not indicative of what segment results of operations would have been had it been operated on a fully allocated cost basis. The Company cautions that it would be inappropriate to assume that unallocated operating costs are incurred proportional to segment revenue or any directly identifiable segment expenses. Refer to Note 9—Segment Reporting. | ||||||
Concentration Of Credit Risk And Significant Customers | ' | |||||
Concentration of Credit Risk and Significant Customers— Bad debts are provided for using the allowance for doubtful accounts method based on historical experience and management’s evaluation of outstanding receivables at the end of the period. Receivables are written off when management determines amounts are uncollectible. Trade accounts receivable are uncollateralized and represent a large number of geographically dispersed debtors. The collectability risk with respect to our national and regional advertising is reduced by dealing with founding members or large, national advertising agencies who have strong reputations in the advertising industry and clients with stable financial positions. We have smaller contracts with thousands of local clients that are not individually significant. As of September 25, 2014 and December 26, 2013, there were no advertising agency groups or individual customers through which the Company sources national advertising revenue representing more than 10% of the Company’s outstanding gross receivable balance. During the nine months ended September 25, 2014, revenue related to NCM LLC’s founding members’ beverage supplier accounted for 10.4% of total revenue. During the three months ended September 25, 2014 and the three and nine months ended September 26, 2013, there were no customers that accounted for more than 10% of revenue. | ||||||
Share-Based Compensation | ' | |||||
Share-Based Compensation—The Company has issued stock options, restricted stock and restricted stock units to its employees and independent directors. In 2014 and 2013, the Company did not grant stock options. Restricted stock and restricted stock units granted prior to 2013 vest upon the achievement of Company performance measures and service conditions. In 2013, the Company granted restricted stock and restricted stock units that vest upon the achievement of Company performance measures and service conditions, or only service conditions, depending on the title of the employee. In 2014, restricted stock grants for Company officers vest upon the achievement of Company performance measures and service conditions, or only service conditions, while non-officer grants vest only upon the achievement of service conditions. Compensation expense of restricted stock that vests upon the achievement of Company performance measures is based on management’s financial projections and the probability of achieving the projections, which require considerable judgment. A cumulative adjustment is recorded to share-based compensation expense in periods that management changes its estimate of the number of shares expected to vest. Ultimately, the Company adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. Dividends are accrued when declared on unvested restricted stock that is expected to vest and are only paid with respect to shares that actually vest. During the three and nine months ended September 25, 2014 and the three and nine months ended September 26, 2013, 1,930, 253,590, 1,000, and 360,258 shares of restricted stock and restricted stock units vested. During the three and nine months ended September 25, 2014, 3,605 and 56,052 stock options were exercised at a weighted average exercise price of $11.54 and $13.58 per share, respectively, and during the three and nine months ended September 26, 2013, 612,585 and 1,249,066 stock options were exercised at a weighted average exercise price of $14.94 and $13.23 per share, respectively. | ||||||
In connection with the Company’s March 2014 special cash dividend of $0.50 per share and pursuant to the antidilution adjustment terms of the Company’s Equity Incentive Plan, the exercise price and the number of shares of common stock subject to options held by the Company’s employees were adjusted to prevent dilution and restore their economic value that existed immediately before the special dividend. The antidilution adjustments made with respect to such options resulted in a decrease in the range of exercise prices from $5.35 - $24.68 per share to $5.18 - $23.90 per share and an increase in the aggregate number of shares issuable upon exercise of such options by 98,589 shares, or 3.3%, of previously outstanding options. The number of shares authorized under the Equity Incentive Plan increased by an equivalent number of shares. There were no accounting consequences for the changes made to reduce the exercise prices and increase the number of underlying options as a result of the special cash dividend because the aggregate fair values of the awards immediately before and after the modifications were the same. | ||||||
Consolidation | ' | |||||
Consolidation— NCM, Inc. consolidates the accounts of NCM LLC under the provision of ASC 810, Consolidation (“ASC 810”). Under ASC 810, a managing member of a limited liability company (“LLC”) is presumed to control the LLC, unless the non-managing members have the right to dissolve the entity or remove the managing member without cause, or if the non-managing members have substantive participating rights. The non-managing members of NCM LLC do not have dissolution rights or removal rights. NCM, Inc. has evaluated the provisions of the NCM LLC membership agreement and has concluded that the various rights of the non-managing members are not substantive participation rights under ASC 810, as they do not limit NCM, Inc.’s ability to make decisions in the ordinary course of business. | ||||||
The following table presents the changes in NCM, Inc.’s equity resulting from net income attributable to NCM, Inc. and transfers to or from noncontrolling interests (in millions): | ||||||
Nine Months Ended | ||||||
25-Sep-14 | 26-Sep-13 | |||||
Net income attributable to NCM, Inc. | $ | 5.3 | $ | 22.2 | ||
NCM LLC equity issued for purchase of intangible asset | 7.5 | 73.2 | ||||
Income tax and other impacts of subsidiary ownership changes | -2 | -18.2 | ||||
Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests | $ | 10.8 | $ | 77.2 | ||
Income Taxes | ' | |||||
Income Taxes—Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740, Income Taxes. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||
The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized, which will be assessed on an on-going basis. In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities. The Company follows ASC 740-10-25, which requires the use of a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. Only tax positions that meet the more likely than not recognition threshold are recognized. | ||||||
Recent Accounting Pronouncements | ' | |||||
Recent Accounting Pronouncements | ||||||
In March 2014, the Emerging Issues Task Force (“EITF”) reached a final consensus on Issue 13-D, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period (“EITF 13-D”). Under EITF 13-D, a performance target that can be achieved after the requisite service period should be treated as a performance condition that affects vesting, rather than a condition that affects grant date fair value. Compensation cost is recognized over the requisite service period if it is probable that the performance condition will be achieved. If necessary, compensation cost is subsequently adjusted, to reflect those awards that ultimately vest. EITF 13-D will be effective, on a prospective basis, for the Company during its first quarter of 2016, with early adoption permitted. The adoption of this standard is not anticipated to have a material impact on the Company's unaudited Condensed Consolidated Financial Statements or notes thereto. | ||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This guidance will be effective beginning in fiscal year 2017 and early adoption is not permitted. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its unaudited Condensed Consolidated Financial Statements or notes thereto, as well as which transition method it intends to use. | ||||||
In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements - Going Concern (“ASU 2014-15”). ASU 2014-15 requires that management evaluate at each annual and interim reporting period whether there is a substantial doubt about an entity’s ability to continue as a going concern within one year of the date that the financial statements are issued. ASU 2014-15 will be effective for fiscal years and interim periods beginning after December 15, 2016 and early application is permitted. The Company does not expect that the application of ASU 2014-15 will have an impact on the unaudited Condensed Consolidated Financial Statements or notes thereto. | ||||||
The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its unaudited Condensed Consolidated Financial Statements. | ||||||
The_Company_Tables
The Company (Tables) | 9 Months Ended | |||||
Sep. 25, 2014 | ||||||
The Company | ' | |||||
Changes In Equity | ' | |||||
Nine Months Ended | ||||||
25-Sep-14 | 26-Sep-13 | |||||
Net income attributable to NCM, Inc. | $ | 5.3 | $ | 22.2 | ||
NCM LLC equity issued for purchase of intangible asset | 7.5 | 73.2 | ||||
Income tax and other impacts of subsidiary ownership changes | -2 | -18.2 | ||||
Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests | $ | 10.8 | $ | 77.2 | ||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 25, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule Of Earnings Per Share, Basic And Diluted | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | ||||||||||
Net income attributable to NCM, Inc. (in millions) | $ | 4.8 | $ | 13.7 | $ | 5.3 | $ | 22.2 | |||||
Weighted average shares outstanding: | |||||||||||||
Basic | 58,744,395 | 56,027,288 | 58,695,073 | 55,233,875 | |||||||||
Add: Dilutive effect of stock options and restricted stock | 299,374 | 847,953 | 292,872 | 630,596 | |||||||||
Diluted | 59,043,769 | 56,875,241 | 58,987,945 | 55,864,471 | |||||||||
Income per NCM, Inc. share: | |||||||||||||
Basic | $ | 0.08 | $ | 0.24 | $ | 0.09 | $ | 0.40 | |||||
Diluted | $ | 0.08 | $ | 0.24 | $ | 0.09 | $ | 0.40 | |||||
RelatedParty_Transactions_Tabl
Related-Party Transactions (Tables) | 9 Months Ended | ||||||||||||
Sep. 25, 2014 | |||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule Of Mandatory Distributions To Members | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | ||||||||||
AMC | $ | 6.0 | $ | 10.6 | $ | 12.8 | $ | 21.2 | |||||
Cinemark | 7.7 | 13.3 | 16.4 | 26.0 | |||||||||
Regal | 8.1 | 12.2 | 17.2 | 25.7 | |||||||||
NCM, Inc. | 18.5 | 32.3 | 39.4 | 63.1 | |||||||||
Total | $ | 40.3 | $ | 68.4 | $ | 85.8 | $ | 136.0 | |||||
Schedule Of Amounts Due To Founding Members | ' | ||||||||||||
Amounts due to founding members as of September 25, 2014 were comprised of the following (in millions): | |||||||||||||
AMC | Cinemark | Regal | Total | ||||||||||
Theatre access fees, net of beverage revenues | $ | 0.7 | $ | 0.7 | $ | 1.1 | $ | 2.5 | |||||
Cost and other reimbursement | -0.4 | -0.2 | - | -0.6 | |||||||||
Distributions payable to founding members | 6.0 | 7.7 | 8.1 | 21.8 | |||||||||
Total | $ | 6.3 | $ | 8.2 | $ | 9.2 | $ | 23.7 | |||||
Amounts due to founding members as of December 26, 2013 were comprised of the following (in millions): | |||||||||||||
AMC | Cinemark | Regal | Total | ||||||||||
Theatre access fees, net of beverage revenues | $ | 0.6 | $ | 0.7 | $ | 1.1 | $ | 2.4 | |||||
Cost and other reimbursement | -2 | -0.7 | -0.6 | -3.3 | |||||||||
Distributions payable to founding members | 8.7 | 10.9 | 11.4 | 31.0 | |||||||||
Total | $ | 7.3 | $ | 10.9 | $ | 11.9 | $ | 30.1 | |||||
Founding Members [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule Of Related Party Transactions | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Included in the Condensed Consolidated Statements of Income: | 25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | |||||||||
Revenue: | |||||||||||||
Beverage concessionaire revenue (included in advertising revenue) (1) | $ | 9.0 | $ | 11.5 | $ | 28.2 | $ | 31.5 | |||||
Advertising inventory revenue (included in advertising revenue) (2) | 0.1 | - | 0.2 | 0.1 | |||||||||
Operating expenses: | |||||||||||||
Theatre access fee (3) | 17.0 | 18.7 | 52.3 | 52.4 | |||||||||
Revenue share from Fathom Events (included in Fathom Events operating costs) (4) | - | 1.3 | - | 3.0 | |||||||||
Purchase of movie tickets and concession products and rental of theatre space (included in Fathom Events operating costs) (5) | - | - | - | 0.3 | |||||||||
Purchase of movie tickets and concession products and rental of theatre space (included in selling and marketing costs) (6) | 0.2 | 0.3 | 0.7 | 1.0 | |||||||||
Purchase of movie tickets and concession products and rental of theatre space (included in other administrative and other costs) | - | - | 0.1 | - | |||||||||
Non-operating expenses: | |||||||||||||
Interest income from notes receivable (included in interest income) (7) | 0.3 | - | 0.9 | - | |||||||||
-1 | For the three months ended September 25, 2014 and September 26, 2013, the founding members purchased 60 seconds of on-screen advertising time (with a right to purchase up to 90 seconds) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a rate specified by the ESA at a 30 second equivalent cost per thousand (“CPM”). | ||||||||||||
-2 | The value of such purchases is calculated by reference to NCM LLC’s advertising rate card. | ||||||||||||
-3 | Comprised of payments per theatre attendee, payments per digital screen with respect to the founding member theatres included in the Company’s network and payments for access to higher quality digital cinema equipment. | ||||||||||||
-4 | Prior to the sale of Fathom Events on December 26, 2013, these payments were at rates (percentage of event revenue) included in the previous ESAs based on the nature of the event. | ||||||||||||
-5 | Prior to the sale of Fathom Events on December 26, 2013, these were used primarily for marketing resale to Fathom Events customers. | ||||||||||||
-6 | Used primarily for marketing to NCM LLC’s advertising clients. | ||||||||||||
-7 | On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (AC JV, LLC) owned 32% by each of the founding members and 4% by NCM LLC. In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member). The notes bear interest at a fixed rate of 5.0% per annum, compounded annually. Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing. | ||||||||||||
As of | |||||||||||||
Included in the Condensed Consolidated Balance Sheets: | 25-Sep-14 | 26-Dec-13 | |||||||||||
Purchase of movie tickets and concession products (included in Prepaid expenses) (1) | $ | 0.2 | $ | - | |||||||||
Current portion of notes receivable (2) | 4.2 | 4.2 | |||||||||||
Long-term portion of notes receivable (2) | 20.8 | 20.8 | |||||||||||
Interest receivable on notes receivable (included in other current assets) (2) | 0.9 | - | |||||||||||
Common unit adjustments and integration payments, net of amortization (included in intangible assets) (3) | 463.8 | 463.4 | |||||||||||
Current payable to founding members under tax receivable agreement (4) | 21.7 | 28.6 | |||||||||||
Long-term payable to founding members under tax receivable agreement (4) | 142.7 | 144.0 | |||||||||||
-1 | Used primarily for marketing to NCM LLC’s advertising clients. | ||||||||||||
-2 | Refer to the discussion of notes receivable from the founding members above. | ||||||||||||
-3 | Refer to Note 3—Intangible Assets for further information on common unit adjustments and integration payments. | ||||||||||||
-4 | The Company paid the founding members $25.1 million in the first quarter of 2014, of which $6.7 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $18.4 million was for the 2013 tax year. | ||||||||||||
Related Party Affiliates [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule Of Related Party Transactions | ' | ||||||||||||
Following is a summary of advertising operating costs in the unaudited Condensed Consolidated Statements of Income between the Company and its related party affiliates (in millions): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Related Party Affiliate | September 25, | September 26, | September 25, | September 26, | |||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Starplex (1) | $ | 1.2 | $ | 1.0 | $ | 2.5 | $ | 2.2 | |||||
Other | - | 0.1 | 0.1 | 0.4 | |||||||||
Total | $ | 1.2 | $ | 1.1 | $ | 2.6 | $ | 2.6 | |||||
Following is a summary of the accounts payable balance between the Company and its related party affiliates included in the unaudited Condensed Consolidated Balance Sheets (in millions): | |||||||||||||
As of | |||||||||||||
Related Party Affiliate | 25-Sep-14 | 26-Dec-13 | |||||||||||
Starplex (1) | $ | 0.8 | $ | 0.7 | |||||||||
Other | 0.1 | 0.1 | |||||||||||
Total | $ | 0.9 | $ | 0.8 | |||||||||
-1 | Starplex Operating L.P. (“Starplex”) is an affiliate of one of NCM, Inc.’s directors. | ||||||||||||
NCM, LLC. [Member] | AC JV, LLC [Member] | ' | ||||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||||
Schedule Of Related Party Transactions | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Included in the Condensed Consolidated Statements of Income: | 25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | |||||||||
Transition services (included in network costs) (1) | $ | 0.1 | $ | - | $ | 0.2 | $ | - | |||||
Equity in earnings of non-consolidated entities (included in other non-operating expense) (2) | - | - | 0.1 | - | |||||||||
-1 | In connection with the sale of Fathom Events, NCM LLC entered into a transition services agreement to provide certain corporate overhead services for a fee and reimbursement for the use of facilities and certain services including creative, technical event management and event management for the newly formed limited liability company for a period of nine months following the closing. These fees received by NCM LLC are included as an offset to network costs in the unaudited Condensed Consolidated Statements of Income. | ||||||||||||
-2 | The Company accounts for its investment in AC JV, LLC under the equity method of accounting in accordance with ASC 323-30, Investments—Equity Method and Joint Ventures (“ASC 323-30”) because AC JV, LLC is a limited liability company with the characteristics of a limited partnership and ASC 323-30 requires the use of equity method accounting unless the Company’s interest is so minor that it would have virtually no influence over partnership operating and financial policies. The Company concluded that its interest was more than minor under the accounting guidance despite the fact that NCM LLC does not have a representative on AC JV, LLC’s Board of Directors or any voting, consent or blocking rights with respect to the governance or operations of AC JV, LLC. | ||||||||||||
As of | |||||||||||||
Included in the Condensed Consolidated Balance Sheets: | 25-Sep-14 | 26-Dec-13 | |||||||||||
Amounts due to AC JV, LLC (included in other current liabilities) (1) | $ | 3.3 | $ | - | |||||||||
Investment in AC JV, LLC (included in other investments) (2) | 1.1 | 1.1 | |||||||||||
-1 | As described above, NCM LLC entered into a transition services agreement with AC JV, LLC for reimbursement of certain expenses. NCM LLC continued to perform back office accounting and, as such, these amounts primarily represent the settlement of AC JV, LLC’s revenue and expenses. | ||||||||||||
-2 | Refer to the discussion of the investment in AC JV, LLC above. | ||||||||||||
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | ||||||||||
Sep. 25, 2014 | |||||||||||
Borrowings [Abstract] | ' | ||||||||||
Schedule Of Outstanding Debt | ' | ||||||||||
Outstanding Balance as of | |||||||||||
Borrowings | 25-Sep-14 | December 26, | Maturity | Interest Rate | |||||||
2013 | Date | ||||||||||
Revolving Credit Facility | $ | 25.0 | $ | 20.0 | November 26, 2019 (1) | -2 | |||||
Term Loans | 270.0 | 270.0 | 26-Nov-19 | -2 | |||||||
Senior Unsecured Notes | 200.0 | 200.0 | 15-Jul-21 | 7.88% | |||||||
Senior Secured Notes | 400.0 | 400.0 | 15-Apr-22 | 6.00% | |||||||
Total | $ | 895.0 | $ | 890.0 | |||||||
Less: current portion of long-term debt | -14 | -14 | |||||||||
Long-term debt, less current portion | $ | 881.0 | $ | 876.0 | |||||||
(1)A portion of the revolving credit facility has a maturity date of December 31, 2014, as described in further detail below. | |||||||||||
(2)The interest rates on the revolving credit facility and term loan are described below. | |||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||
Sep. 25, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Estimated Fair Values Of Company's Financial Instruments | ' | ||||||||||||
As of September 25, 2014 | As of December 26, 2013 | ||||||||||||
Carrying Value | Fair Value (1) | Carrying Value | Fair Value (1) | ||||||||||
Term Loans | $ | 270.0 | $ | 259.9 | $ | 270.0 | $ | 269.5 | |||||
Senior Unsecured Notes | 200.0 | 214.1 | 200.0 | 220.4 | |||||||||
Senior Secured Notes | 400.0 | 404.8 | 400.0 | 414.0 | |||||||||
___________ | |||||||||||||
(1) The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2. | |||||||||||||
Fair Values Of The Company's Assets And Liabilities | ' | ||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
As of | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
25-Sep-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
ASSETS: | |||||||||||||
Cash equivalents (1) | $ | 10.0 | $ | 6.5 | $ | 3.5 | $ | - | |||||
Short-term marketable securities (2) | 20.3 | 8.4 | 11.9 | - | |||||||||
Long-term marketable securities (2) | 39.4 | 36.4 | 3.0 | - | |||||||||
Total assets | $ | 69.7 | $ | 51.3 | $ | 18.4 | $ | - | |||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
As of | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
26-Dec-13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
ASSETS: | |||||||||||||
Cash equivalents (1) | $ | 28.3 | $ | - | $ | 28.3 | $ | - | |||||
Short-term marketable securities (2) | 71.3 | 4.5 | 66.8 | - | |||||||||
Total assets | $ | 99.6 | $ | 4.5 | $ | 95.1 | $ | - | |||||
-1 | Cash Equivalents— The Company’s cash equivalents are carried at estimated fair value. Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts and commercial paper with original maturities of three months or less, which are classified as Level 2 and are valued as described below. | ||||||||||||
-2 | Short-Term and Long-Term Marketable Securities — The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds and commercial paper are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and nine months ended September 25, 2014 and September 26, 2013, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short-term marketable securities is based on the specific identification method. As of September 25, 2014 and December 26, 2013, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer. | ||||||||||||
Schedule Of Marketable Securities | ' | ||||||||||||
As of September 25, 2014 | |||||||||||||
Amortized Cost Basis | Aggregate Fair Value | Maturities (1) (in years) | |||||||||||
(in millions) | (in millions) | ||||||||||||
MARKETABLE SECURITIES: | |||||||||||||
Short-term municipal bonds | $ | 8.3 | $ | 8.4 | 0.4 | ||||||||
Short-term commercial paper: | |||||||||||||
Financial | 3.4 | 3.4 | 0.3 | ||||||||||
Industrial | 3.3 | 3.2 | 0.4 | ||||||||||
Utility | 3.0 | 3.0 | 0.4 | ||||||||||
Short-term certificates of deposit | 2.3 | 2.3 | 0.7 | ||||||||||
Total short-term marketable securities | 20.3 | 20.3 | |||||||||||
Long-term U.S. government treasury bonds | 5.1 | 5.1 | 3.0 | ||||||||||
Long-term municipal bonds | 0.8 | 0.8 | 1.3 | ||||||||||
Long-term U.S. government agency bonds | 30.5 | 30.5 | 3.7 | ||||||||||
Long-term certificates of deposit | 3.0 | 3.0 | 3.6 | ||||||||||
Total long-term marketable securities | 39.4 | 39.4 | |||||||||||
Total marketable securities | $ | 59.7 | $ | 59.7 | |||||||||
. | |||||||||||||
As of December 26, 2013 | |||||||||||||
Amortized Cost Basis | Aggregate Fair Value | Maturities (1) (in years) | |||||||||||
(in millions) | (in millions) | ||||||||||||
MARKETABLE SECURITIES: | |||||||||||||
Short-term municipal bonds | $ | 4.5 | $ | 4.5 | 0.2 | ||||||||
Short-term commercial paper: | |||||||||||||
Financial | 50.3 | 50.3 | 0.3 | ||||||||||
Industrial | 8.8 | 8.8 | 0.1 | ||||||||||
Utility | 7.7 | 7.7 | 0.1 | ||||||||||
Total marketable securities | $ | 71.3 | $ | 71.3 | |||||||||
____________ | |||||||||||||
-1 | Maturities— Securities available for sale include obligations with various contractual maturity dates some of which are greater than one year. The Company considers the securities to be liquid and convertible to cash within 30 days. | ||||||||||||
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging Activities (Tables) | 9 Months Ended | ||||||||
Sep. 25, 2014 | |||||||||
Derivative Instruments And Hedging Activities [Abstract] | ' | ||||||||
Schedule Of Changed In AOCI By Component | ' | ||||||||
Nine Months Ended | |||||||||
September 25, | 26-Sep-13 | Income Statement Location | |||||||
2014 | |||||||||
Balance at beginning of period | $ | -3.2 | $ | -6.7 | |||||
Amounts reclassified from AOCI: | |||||||||
Amortization on discontinued cash flow hedges | 7.6 | 7.8 | Amortization of terminated derivatives | ||||||
Total amounts reclassified from AOCI | 7.6 | 7.8 | |||||||
Noncontrolling interest on reclassifications | -4.1 | -4.2 | |||||||
Tax effect on reclassifications | -1.4 | -1.4 | |||||||
Net other comprehensive income | 2.1 | 2.2 | |||||||
Impact of subsidiary ownership changes | - | 0.3 | |||||||
Balance at end of period | $ | -1.1 | $ | -4.2 | |||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||
Sep. 25, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule Of Segment Operating Income | ' | ||||||||||||
Three Months Ended September 25, 2014 | |||||||||||||
Advertising | Fathom Events (1) | Network, Administrative and Unallocated Costs | Consolidated | ||||||||||
Revenue | $ | 100.8 | $ | - | $ | - | $ | 100.8 | |||||
Operating costs | 23.5 | - | 4.4 | 27.9 | |||||||||
Selling and marketing costs | 14.4 | - | 0.3 | 14.7 | |||||||||
Administrative and other costs | 0.6 | - | 8.3 | 8.9 | |||||||||
Depreciation and amortization | - | - | 8.6 | 8.6 | |||||||||
Interest and other non-operating costs | - | - | 19.2 | 19.2 | |||||||||
Income (loss) before income taxes | $ | 62.3 | $ | - | $ | -40.8 | $ | 21.5 | |||||
Three Months Ended September 26, 2013 | |||||||||||||
Advertising | Fathom Events (1) | Network, Administrative and Unallocated Costs | Consolidated | ||||||||||
Revenue | $ | 127.6 | $ | 7.5 | $ | - | $ | 135.1 | |||||
Operating costs | 26.6 | 5.4 | 5.1 | 37.1 | |||||||||
Selling and marketing costs | 14.0 | 0.8 | 0.8 | 15.6 | |||||||||
Administrative and other costs | 0.7 | 0.2 | 6.9 | 7.8 | |||||||||
Depreciation and amortization | - | - | 7.2 | 7.2 | |||||||||
Interest and other non-operating costs | - | - | 18.7 | 18.7 | |||||||||
Income (loss) before income taxes | $ | 86.3 | $ | 1.1 | $ | -38.7 | $ | 48.7 | |||||
Nine Months Ended September 25, 2014 | |||||||||||||
Advertising | Fathom Events (1) | Network, Administrative and Unallocated Costs | Consolidated | ||||||||||
Revenue | $ | 270.9 | $ | - | $ | - | $ | 270.9 | |||||
Operating costs | 70.4 | - | 13.4 | 83.8 | |||||||||
Selling and marketing costs | 42.0 | - | 1.8 | 43.8 | |||||||||
Administrative and other costs | 2.1 | - | 23.2 | 25.3 | |||||||||
Depreciation and amortization | - | - | 24.2 | 24.2 | |||||||||
Interest and other non-operating costs | - | - | 56.9 | 56.9 | |||||||||
Income (loss) before income taxes | $ | 156.4 | $ | - | $ | -119.5 | $ | 36.9 | |||||
Nine Months Ended September 26, 2013 | |||||||||||||
Advertising | Fathom Events (1) | Network, Administrative and Unallocated Costs | Consolidated | ||||||||||
Revenue | $ | 318.2 | $ | 21.9 | $ | - | $ | 340.1 | |||||
Operating costs | 74.1 | 15.4 | 15.2 | 104.7 | |||||||||
Selling and marketing costs | 42.1 | 2.6 | 2.0 | 46.7 | |||||||||
Administrative and other costs | 1.7 | 0.6 | 20.6 | 22.9 | |||||||||
Depreciation and amortization | - | - | 18.8 | 18.8 | |||||||||
Interest and other non-operating costs | - | - | 57.8 | 57.8 | |||||||||
Income (loss) before income taxes | $ | 200.3 | $ | 3.3 | $ | -114.4 | $ | 89.2 | |||||
Summary Of Revenue By Category | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
25-Sep-14 | 26-Sep-13 | 25-Sep-14 | 26-Sep-13 | ||||||||||
National advertising revenue | $ | 62.9 | $ | 91.1 | $ | 174.0 | $ | 226.0 | |||||
Local advertising revenue | 28.9 | 25.0 | 68.7 | 60.7 | |||||||||
Founding member advertising revenue from beverage concessionaire agreements | 9.0 | 11.5 | 28.2 | 31.5 | |||||||||
Fathom Consumer revenue (1) | - | 7.5 | - | 20.8 | |||||||||
Fathom Business revenue (1) | - | - | - | 1.1 | |||||||||
Total revenue | $ | 100.8 | $ | 135.1 | $ | 270.9 | $ | 340.1 | |||||
____________ | |||||||||||||
-1 | Fathom Events was sold on December 26, 2013 as discussed in Note 4—Related Party Transactions. | ||||||||||||
The_Company_Narrative_Details
The Company (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||||
Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Dec. 26, 2013 | Oct. 29, 2014 | Jul. 02, 2014 | Mar. 31, 2014 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Dec. 26, 2013 | Dec. 26, 2013 | Dec. 26, 2013 | Dec. 26, 2013 | Mar. 27, 2014 | 5-May-14 | Mar. 27, 2014 | Sep. 25, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Sep. 25, 2014 | Mar. 27, 2014 | |
Subsequent Event [Member] | Screenvision, LLC [Member] | Special Dividend [Member] | Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | NCM, LLC. [Member] | NCM Inc. [Member] | Regal [Member] | Cinemark [Member] | AMC [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Founding Member Advertising Revenue From Beverage Concessionaire Agreements [Member] | AC JV, LLC [Member] | AC JV, LLC [Member] | AC JV, LLC [Member] | AC JV, LLC [Member] | Antidilution Adjustment [Member] | Forecast [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||||||
Screenvision Term Loan [Member] | item | item | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | NCM, LLC. [Member] | Regal [Member] | Cinemark [Member] | AMC [Member] | Screenvision, LLC [Member] | Antidilution Adjustment [Member] | Antidilution Adjustment [Member] | ||||||||||||||||||||||
customer | customer | customer | customer | NCM, LLC. [Member] | ||||||||||||||||||||||||||||||||
General Company Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range of terms, in years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '20 years | ' |
Common membership units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,290,567 | 58,746,988 | 25,792,942 | 24,556,136 | 19,194,501 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of common membership units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.80% | 20.10% | 19.10% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Membership units exchangeable into common stock ratio | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 32.00% | 32.00% | 32.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration for merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $375,000,000 | ' | ' | ' | ' | ' | ' |
Cash paid for merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225,000,000 | ' | ' | ' | ' | ' | ' |
Debt instrument face amount | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value assigned to common stock for merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | ' | ' | ' | ' | ' | ' |
Number of shares issuable for merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,900,990 | ' | ' | ' | ' | ' | ' |
Share price per share for merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15.15 | ' | ' | ' | ' | ' | ' |
Number of units issuable for exchange of assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,900,990 | ' | ' | ' | ' | ' | ' |
Number of advertising agency groups contributing to more than 10% of outstanding gross receivable balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers contributing to more than 10% of revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options granted in period | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of restricted stock and stock units vested | ' | ' | ' | ' | ' | ' | ' | ' | 1,930 | 1,000 | 253,590 | 360,258 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised in period | 3,605 | 612,585 | 56,052 | 1,249,066 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price | $11.54 | $14.94 | $13.58 | $13.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.35 | ' | $5.18 | $24.68 | ' | $23.90 |
Cash dividends declared, per share | ' | ' | ' | ' | ' | $0.22 | ' | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in aggregate number of shares issuable upon exercise | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98,589 | ' | ' | ' | ' | ' | ' | ' |
Percentage of previously outstanding options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.30% | ' | ' | ' | ' | ' | ' | ' |
The_Company_Changes_In_Equity_
The Company (Changes In Equity) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 |
General Company Information [Line Items] | ' | ' | ' | ' |
Net income attributable to NCM, Inc. | $4.80 | $13.70 | $5.30 | $22.20 |
NCM LLC equity returned for purchase of intangible asset | ' | ' | 16.4 | 160.2 |
Income tax and other impacts of NCM LLC ownership changes | ' | ' | -0.3 | -14.8 |
Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests | ' | ' | 10.8 | 77.2 |
Additional Paid In Capital (Deficit) [Member] | ' | ' | ' | ' |
General Company Information [Line Items] | ' | ' | ' | ' |
NCM LLC equity returned for purchase of intangible asset | ' | ' | 7.5 | 73.2 |
Income tax and other impacts of NCM LLC ownership changes | ' | ' | ($2) | ($18.20) |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | |
Stock Options And Non-Vested Restricted Stock [Member] | Exercise Prices Above Market Value [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares excluded from the calculation of diluted weighted average shares | 10,125 | 9,533 | 97,767 | 36,923 |
Common Units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares excluded from the calculation of diluted weighted average shares | 69,543,579 | 66,953,757 | 69,220,792 | 62,806,362 |
Earnings_Per_Share_Schedule_Of
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income attributable to NCM, Inc. | $4.80 | $13.70 | $5.30 | $22.20 |
Basic | 58,744,395 | 56,027,288 | 58,695,073 | 55,233,875 |
Add: Dilutive effect of stock options and restricted stock | 299,374 | 847,953 | 292,872 | 630,596 |
Diluted | 59,043,769 | 56,875,241 | 58,987,945 | 55,864,471 |
Basic | $0.08 | $0.24 | $0.09 | $0.40 |
Diluted | $0.08 | $0.24 | $0.09 | $0.40 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Mar. 27, 2014 | Mar. 28, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 25, 2014 |
NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | Minimum [Member] | Maximum [Member] | |
Founding Member Payment Election [Member] | Founding Member Payment Election [Member] | Founding Member Payment Election [Member] | Founding Member Payment Election [Member] | AMC And Cinemark Integration Payments [Member] | AMC And Cinemark Integration Payments [Member] | AMC And Cinemark Integration Payments [Member] | AMC And Cinemark Integration Payments [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common membership units issued | 1,087,911 | 4,536,014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (decrease) in intangible assets, net | $16.40 | $69 | ($0.60) | ($0.90) | ($1.50) | ($1.10) | ($0.60) | ($1) | ($1.40) | ($2.10) | ' | ' |
Percentage increase (decrease) in theatre attendance for Common Unit adjustment to occur | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2.00% | 2.00% |
RelatedParty_Transactions_Narr
Related-Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Dec. 26, 2013 |
Founding Members [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Cash payment due to founding members/managing member | $21.80 | ' | $21.80 | ' | ' |
NCM, LLC. [Member] | Interactive Media Company [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related party revenue | 0 | 0.1 | 0.1 | 0.2 | ' |
Accounts receivable | 0.1 | ' | 0.1 | ' | 0.2 |
NCM, LLC. [Member] | AEG Live [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related party revenue | 0.2 | ' | 0.2 | ' | ' |
Accounts receivable | $0.20 | ' | $0.20 | ' | ' |
RelatedParty_Transactions_Summ
Related-Party Transactions (Summary Of Transactions Between The Company And The Founding Members Included in Statements Of Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Dec. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Dec. 26, 2013 | Dec. 26, 2013 | Dec. 26, 2013 | Dec. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Dec. 26, 2013 | Dec. 26, 2013 | Dec. 26, 2013 | Dec. 26, 2013 | ||||||||||||||||||||
Maximum [Member] | Maximum [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | NCM, LLC. [Member] | Beverage Concessionaire [Member] | Beverage Concessionaire [Member] | Beverage Concessionaire [Member] | Beverage Concessionaire [Member] | Advertising Inventory [Member] | Advertising Inventory [Member] | Advertising Inventory [Member] | Advertising Inventory [Member] | Use Of Screens/Theatres For Fathom Events [Member] | Use Of Screens/Theatres For Fathom Events [Member] | Use Of Screens/Theatres For Fathom Events [Member] | Use Of Screens/Theatres For Fathom Events [Member] | Purchase Of Movie Tickets And Concession Products And Rental Of Theatre Space [Member] | Purchase Of Movie Tickets And Concession Products And Rental Of Theatre Space [Member] | Purchase Of Movie Tickets And Concession Products And Rental Of Theatre Space [Member] | Purchase Of Movie Tickets And Concession Products And Rental Of Theatre Space [Member] | AC JV, LLC [Member] | AC JV, LLC [Member] | AC JV, LLC [Member] | AC JV, LLC [Member] | ||||||||||||||||||||||||||
Founding Members [Member] | AMC [Member] | Regal [Member] | Cinemark [Member] | Regal [Member] | Cinemark [Member] | AMC [Member] | NCM, LLC. [Member] | ||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
Advertising revenue | $100.80 | $127.60 | $270.90 | $318.20 | ' | ' | ' | ' | ' | ' | ' | $9 | [1] | $11.50 | [1] | $28.20 | [1] | $31.50 | [1] | $0.10 | [2] | ' | [2] | $0.20 | [2] | $0.10 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Theatre access fee | 17 | [3] | 18.7 | [3] | 52.3 | [3] | 52.4 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||
Fathom Events operating costs | ' | 5.4 | ' | 15.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | [4] | 1.3 | [4] | ' | [4] | 3 | [4] | ' | [5] | ' | [5] | ' | [5] | 0.3 | [5] | ' | ' | ' | ' | ||||||||||||
Selling and marketing costs | 14.7 | 15.6 | 43.8 | 46.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | [6] | 0.3 | [6] | 0.7 | [6] | 1 | [6] | ' | ' | ' | ' | ||||||||||||||||
Other administrative and other costs | 6.9 | 7.8 | 21.6 | 22.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | [7] | ' | [7] | 0.1 | [7] | ' | [7] | ' | ' | ' | ' | ||||||||||||||||
Interest income from notes receivable (included in interest income) | 0.3 | ' | 0.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
On-screen advertising time purchased, in seconds | '60 seconds | '60 seconds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
On-screen advertising time which founding members have right to purchase, in seconds | ' | ' | ' | ' | ' | '90 seconds | '90 seconds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
On-screen advertising time to satisfy agreement obligations, in seconds | '30 seconds | '30 seconds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.00% | 32.00% | 32.00% | 4.00% | ||||||||||||||||||||
Promissory notes receivable from founding members | $25 | ' | $25 | ' | $25 | ' | ' | $25 | $8.30 | $8.30 | $8.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
Interest rate on notes receivable | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
[1] | For the three months ended September 25, 2014 and September 26, 2013, the founding members purchased 60 seconds of on-screen advertising time (with a right to purchase up to 90 seconds) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a rate specified by the ESA at a 30 second equivalent cost per thousand (“CPMâ€). | ||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The value of such purchases is calculated by reference to NCM LLC’s advertising rate card | ||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Comprised of payments per theatre attendee, payments per digital screen with respect to the founding member theatres included in the Company’s network and payments for access to higher quality digital cinema equipment | ||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Prior to the sale of Fathom Events on December 26, 2013, these payments were at rates (percentage of event revenue) included in the previous ESAs based on the nature of the event | ||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Prior to the sale of Fathom Events on December 26, 2013, these were used primarily for marketing resale to Fathom Events customers | ||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | Used primarily for marketing to NCM LLC’s advertising clients | ||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (AC JV, LLC) owned 32% by each of the founding members and 4% by NCM LLC. In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member). The notes bear interest at a fixed rate of 5.0% per annum, compounded annually. Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing. |
RelatedParty_Transactions_Summ1
Related-Party Transactions (Summary Of Transactions Between The Company And The Founding Members Included In Balance Sheets) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 | Mar. 27, 2014 | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Dec. 26, 2013 | Mar. 27, 2014 | Mar. 27, 2014 | ||||||
In Millions, unless otherwise specified | Founding Members [Member] | Purchase Of Movie Tickets And Concession Products [Member] | Purchase Of Movie Tickets And Concession Products [Member] | Common Unit Adjustments And Integration Payments [Member] | Common Unit Adjustments And Integration Payments [Member] | 2009, 2010 and 2011 Tax Year [Member] | 2013 Tax Year [Member] | ||||||||
Founding Members [Member] | Founding Members [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Prepaid expenses | $3.20 | $3.10 | ' | $0.20 | [1] | $0 | [1] | ' | ' | ' | ' | ||||
Current portion of notes receivable - founding members | 4.2 | [2] | 4.2 | [2] | ' | ' | ' | ' | ' | ' | ' | ||||
Long-term notes receivable, net of current portion - founding members | 20.8 | [2] | 20.8 | [2] | ' | ' | ' | ' | ' | ' | ' | ||||
Interest receivable on notes receivable | 0.9 | [2] | ' | [2] | ' | ' | ' | ' | ' | ' | ' | ||||
Common unit adjustments and integration payments, net of amortization (included in Intangible assets) | 494.5 | 492 | ' | ' | ' | 463.8 | [3] | 463.4 | [3] | ' | ' | ||||
Current payable to founding members under tax sharing agreement | 21.7 | [4] | 28.6 | [4] | ' | ' | ' | ' | ' | ' | ' | ||||
Long-term payable to founding members under tax sharing agreement | 142.7 | [4] | 144 | [4] | ' | ' | ' | ' | ' | ' | ' | ||||
Payments to affiliates for tax sharing agreement | ' | ' | $25.10 | ' | ' | ' | ' | $6.70 | $18.40 | ||||||
[1] | Used primarily for marketing to NCM LLC’s advertising clients. | ||||||||||||||
[2] | Refer to the discussion of notes receivable from the founding members above. | ||||||||||||||
[3] | Refer to Note 3—Intangible Assets for further information on common unit adjustments and integration payments. | ||||||||||||||
[4] | The Company paid the founding members $25.1 million in the first quarter of 2014, of which $6.7 million was net operating loss carrybacks for the 2009, 2010 and 2011 tax years and $18.4 million was for the 2013 tax year |
RelatedParty_Transactions_Sche
Related-Party Transactions (Schedule Of Mandatory Distributions To Members) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Cash payments to members | $40.30 | $68.40 | $85.80 | $136 |
AMC [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Cash payments to members | 6 | 10.6 | 12.8 | 21.2 |
Cinemark [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Cash payments to members | 7.7 | 13.3 | 16.4 | 26 |
Regal [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Cash payments to members | 8.1 | 12.2 | 17.2 | 25.7 |
NCM Inc. [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Cash payments to members | $18.50 | $32.30 | $39.40 | $63.10 |
RelatedParty_Transactions_Sche1
Related-Party Transactions (Schedule Of Amounts Due To Founding Members) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Theatre access fees, net of beverage revenues | $2.50 | $2.40 |
Cost and other reimbursement | -0.6 | -3.3 |
Distributions payable to founding members | 21.8 | 31 |
Amounts due to founding members | 23.7 | 30.1 |
AMC [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Theatre access fees, net of beverage revenues | 0.7 | 0.6 |
Cost and other reimbursement | -0.4 | -2 |
Distributions payable to founding members | 6 | 8.7 |
Amounts due to founding members | 6.3 | 7.3 |
Cinemark [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Theatre access fees, net of beverage revenues | 0.7 | 0.7 |
Cost and other reimbursement | -0.2 | -0.7 |
Distributions payable to founding members | 7.7 | 10.9 |
Amounts due to founding members | 8.2 | 10.9 |
Regal [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Theatre access fees, net of beverage revenues | 1.1 | 1.1 |
Cost and other reimbursement | ' | -0.6 |
Distributions payable to founding members | 8.1 | 11.4 |
Amounts due to founding members | $9.20 | $11.90 |
RelatedParty_Transactions_Summ2
Related-Party Transactions (Summary Of Transactions Between NCM LLC And AC JV, LLC Included in Statements Of Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Network costs | $4.40 | $5.10 | $13.40 | $15.20 | ||||
NCM, LLC. [Member] | AC JV, LLC [Member] | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Network costs | 0.1 | [1] | ' | [1] | 0.2 | [1] | ' | [1] |
Equity in earnings of non-consolidated entities (included in other non-operating expense) | ' | [2] | ' | [2] | $0.10 | [2] | ' | [2] |
[1] | In connection with the sale of Fathom Events, NCM LLC entered into a transition services agreement to provide certain corporate overhead services for a fee and reimbursement for the use of facilities and certain services including creative, technical event management and event management for the newly formed limited liability company for a period of nine months following the closing. These fees received by NCM LLC are included as an offset to network costs in the unaudited Condensed Consolidated Statements of Income. | |||||||
[2] | The Company accounts for its investment in AC JV, LLC under the equity method of accounting in accordance with ASC 323-30, Investments—Equity Method and Joint Ventures (“ASC 323-30â€) because AC JV, LLC is a limited liability company with the characteristics of a limited partnership and ASC 323-30 requires the use of equity method accounting unless the Company’s interest is so minor that it would have virtually no influence over partnership operating and financial policies. The Company concluded that its interest was more than minor under the accounting guidance despite the fact that NCM LLC does not have a representative on AC JV, LLC’s Board of Directors or any voting, consent or blocking rights with respect to the governance or operations of AC JV, LLC. |
RelatedParty_Transactions_Summ3
Related-Party Transactions (Summary Of Transactions Between NCM LLC And AC JV, LLC Included In Balance Sheets) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 | ||
In Millions, unless otherwise specified | ||||
Related Party Transaction [Line Items] | ' | ' | ||
Other current liabilities | $3.30 | ' | ||
Other investments | 1.1 | 1.1 | ||
NCM, LLC. [Member] | AC JV, LLC [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Other current liabilities | 3.3 | [1] | ' | [1] |
Other investments | $1.10 | [2] | $1.10 | [2] |
[1] | As described above, NCM LLC entered into a transition services agreement with AC JV, LLC for reimbursement of certain expenses. NCM LLC continued to perform back office accounting and, as such, these amounts primarily represent the settlement of AC JV, LLC’s revenue and expenses. | |||
[2] | Refer to the discussion of the investment in AC JV, LLC above. |
RelatedParty_Transactions_Summ4
Related-Party Transactions (Summary Of Transactions Between The Company And Related Party Affiliates) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | ||||||
In Millions, unless otherwise specified | Starplex [Member] | Starplex [Member] | Other [Member] | Other [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | Advertising Operating Cost [Member] | ||||||||
Starplex [Member] | Starplex [Member] | Starplex [Member] | Starplex [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Advertising operating costs, related party affiliates | ' | ' | ' | ' | ' | ' | $1.20 | $1.10 | $2.60 | $2.60 | $1.20 | [1] | $1 | [1] | $2.50 | [1] | $2.20 | [1] | ' | $0.10 | $0.10 | $0.40 | ||
Accounts payable, related party affiliates | $0.90 | $0.80 | $0.80 | [1] | $0.70 | [1] | $0.10 | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Starplex Operating L.P. (“Starplexâ€) is an affiliate of one of NCM, Inc.’s directors |
Borrowings_Narrative_Details
Borrowings (Narrative) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Jul. 02, 2014 | Jul. 01, 2014 | Sep. 25, 2014 | Dec. 26, 2013 | Jun. 18, 2014 | Jun. 17, 2014 | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 22, 2011 | Sep. 25, 2014 | Dec. 26, 2013 | Nov. 26, 2012 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | 5-May-14 | Jul. 02, 2014 | ||||
Senior Secured Credit Facility [Member] | Senior Secured Credit Facility [Member] | Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Term Loans [Member] | Term Loans [Member] | Revolving Credit Facility Maturing On November 26, 2019 [Member] | Revolving Credit Facility Maturing On December 31, 2014 [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Notes [Member] | Maximum [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | Base Rate [Member] | Base Rate [Member] | Base Rate [Member] | Screenvision, LLC [Member] | Screenvision, LLC [Member] | |||||||
item | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Senior Secured Credit Facility [Member] | Term Loans [Member] | Revolving Credit Facility Maturing On November 26, 2019 [Member] | Revolving Credit Facility Maturing On December 31, 2014 [Member] | Term Loans [Member] | Revolving Credit Facility Maturing On November 26, 2019 [Member] | Revolving Credit Facility Maturing On December 31, 2014 [Member] | Forecast [Member] | Screenvision Term Loan [Member] | |||||||||||||||||||||
item | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Borrowing amount of credit facility | ' | ' | ' | ' | ' | $149,000,000 | ' | ' | $124,000,000 | ' | ' | $135,000,000 | $14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Outstanding debt | 895,000,000 | 890,000,000 | ' | ' | ' | 25,000,000 | 20,000,000 | ' | ' | 270,000,000 | 270,000,000 | ' | ' | 200,000,000 | 200,000,000 | ' | 400,000,000 | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt instrument face amount | ' | ' | ' | 250,000,000 | 160,000,000 | ' | ' | ' | ' | 270,000,000 | 270,000,000 | ' | ' | ' | ' | 200,000,000 | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ||||
Increase in borrowing capacity of revolving credit facility | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of years revolving credit facility extended | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maturity date | ' | ' | ' | ' | ' | 26-Nov-19 | [1],[2] | 26-Nov-19 | [1],[2] | ' | ' | 26-Nov-19 | [1] | 26-Nov-19 | [1] | 26-Nov-19 | 31-Dec-14 | 15-Jul-21 | 15-Jul-21 | ' | 15-Apr-22 | 15-Apr-22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity or credit facility | ' | ' | ' | ' | ' | 149,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Unused line fee, percent | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Basis spread on variable rate, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | 2.00% | 1.50% | 1.75% | 1.00% | 0.50% | ' | ' | ||||
Weighted-average interest rate | ' | ' | ' | ' | ' | 1.88% | ' | ' | ' | 2.91% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Senior secured leverage ratio | ' | ' | 3.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.5 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.88% | 7.88% | 7.88% | 6.00% | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Date of first required interest payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jan-12 | ' | ' | 15-Oct-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Cash paid for merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $225,000,000 | ' | ||||
[1] | The interest rates on the revolving credit facility and term loan are described below. | |||||||||||||||||||||||||||||||
[2] | A portion of the revolving credit facility has a maturity date of December 31, 2014, as described in further detail below. |
Borrowings_Schedule_Of_Outstan
Borrowings (Schedule Of Outstanding Debt) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 22, 2011 | Sep. 25, 2014 | Dec. 26, 2013 | Nov. 26, 2012 | Sep. 25, 2014 | Sep. 25, 2014 | ||||
In Millions, unless otherwise specified | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Term Loans [Member] | Term Loans [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Notes [Member] | Revolving Credit Facility Maturing On December 31, 2014 [Member] | Revolving Credit Facility Maturing On November 26, 2019 [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Outstanding Balance | $895 | $890 | $25 | $20 | $270 | $270 | $200 | $200 | ' | $400 | $400 | ' | ' | ' | ||||
Maturity Date | ' | ' | 26-Nov-19 | [1],[2] | 26-Nov-19 | [1],[2] | 26-Nov-19 | [1] | 26-Nov-19 | [1] | 15-Jul-21 | 15-Jul-21 | ' | 15-Apr-22 | 15-Apr-22 | ' | 31-Dec-14 | 26-Nov-19 |
Interest Rate | ' | ' | ' | ' | ' | ' | 7.88% | 7.88% | 7.88% | 6.00% | 6.00% | 6.00% | ' | ' | ||||
Less: current portion of long-term debt | -14 | -14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Long-term debt, less current portion | $881 | $876 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | The interest rates on the revolving credit facility and term loan are described below. | |||||||||||||||||
[2] | A portion of the revolving credit facility has a maturity date of December 31, 2014, as described in further detail below. |
Commitments_And_Contingencies_
Commitments And Contingencies (Narrative) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 | Sep. 25, 2014 |
In Millions, unless otherwise specified | Screenvision, LLC [Member] | Screenvision, LLC [Member] | Minimum [Member] | Maximum [Member] | ||
Forecast [Member] | ||||||
Other Commitments [Line Items] | ' | ' | ' | ' | ' | ' |
Range of terms, in years | ' | ' | ' | ' | '3 years | '20 years |
Maximum potential payment | $35.40 | ' | ' | ' | ' | ' |
Carrying amount of minimum revenue guarantees | 0 | 0 | ' | ' | ' | ' |
Termination fee of contract | ' | ' | ' | 28.8 | ' | ' |
Termination fee received upon certain criteria | ' | ' | ' | 10 | ' | ' |
Minimum consideration threshold for contract termination collection | ' | ' | $385 | ' | ' | ' |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Measurements [Abstract] | ' | ' |
Other investments | $1.10 | $1.10 |
Promissory notes receivable from founding members | $25 | $25 |
Fair_Value_Measurements_Estima
Fair Value Measurements (Estimated Fair Values Of Company's Financial Instruments) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 | ||
In Millions, unless otherwise specified | ||||
Carrying Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Term Loans | $270 | $270 | ||
Carrying Value [Member] | Senior Unsecured Notes [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Senior Notes | 200 | 200 | ||
Carrying Value [Member] | Senior Secured Notes [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Senior Notes | 400 | 400 | ||
Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Term Loans | 259.9 | [1] | 269.5 | [1] |
Fair Value [Member] | Senior Unsecured Notes [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Senior Notes | 214.1 | [1] | 220.4 | [1] |
Fair Value [Member] | Senior Secured Notes [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Senior Notes | $404.80 | [1] | $414 | [1] |
[1] | The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Values Of The Company's Assets And Liabilities) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 25, 2014 | Dec. 26, 2013 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | $10 | [1] | $28.30 | [1] |
Short-term marketable securities | 20.3 | [2] | 71.3 | [2] |
Long-term marketable securities | 39.4 | [2] | ' | |
Total assets | 69.7 | 99.6 | ||
Individual securities gross unrealized losses | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 6.5 | [1] | ' | |
Short-term marketable securities | 8.4 | [2] | 4.5 | [2] |
Long-term marketable securities | 36.4 | [2] | ' | |
Total assets | 51.3 | 4.5 | ||
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 3.5 | [1] | 28.3 | [1] |
Short-term marketable securities | 11.9 | [2] | 66.8 | [2] |
Long-term marketable securities | 3 | [2] | ' | |
Total assets | $18.40 | $95.10 | ||
[1] | Cash Equivalents— The Company’s cash equivalents are carried at estimated fair value. Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts and commercial paper with original maturities of three months or less, which are classified as Level 2 and are valued as described below. | |||
[2] | Short-Term and Long-Term Marketable Securities — The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds and commercial paper are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and nine months ended September 25, 2014 and September 26, 2013, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short-term marketable securities is based on the specific identification method. As of September 25, 2014 and December 26, 2013, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer. |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Marketable Securities) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 25, 2014 | Dec. 26, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | $59.70 | $71.30 | ||
Aggregate Fair Value - Short term marketable securities | 20.3 | [1] | 71.3 | [1] |
Aggregate Fair Value - Long term marketable securities | 39.4 | [1] | ' | |
Aggregate Fair Value - Total marketable securities | 59.7 | ' | ||
Short-term Investments [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 20.3 | ' | ||
Aggregate Fair Value - Short term marketable securities | 20.3 | ' | ||
Short-term Investments [Member] | Municipal [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 8.3 | 4.5 | ||
Aggregate Fair Value - Short term marketable securities | 8.4 | 4.5 | ||
Maturities | '4 months 24 days | [2] | '2 months 12 days | [2] |
Short-term Investments [Member] | Certificates Of Deposit [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 2.3 | ' | ||
Aggregate Fair Value - Short term marketable securities | 2.3 | ' | ||
Maturities | '8 months 12 days | [2] | ' | |
Short-term Investments [Member] | Commercial Paper, Financial [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 3.4 | 50.3 | ||
Aggregate Fair Value - Short term marketable securities | 3.4 | 50.3 | ||
Maturities | '3 months 18 days | [2] | '3 months 18 days | [2] |
Short-term Investments [Member] | Commercial Paper, Industrial [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 3.3 | 8.8 | ||
Aggregate Fair Value - Short term marketable securities | 3.2 | 8.8 | ||
Maturities | '4 months 24 days | [2] | '1 month 6 days | [2] |
Short-term Investments [Member] | Commercial Paper Utility [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 3 | 7.7 | ||
Aggregate Fair Value - Short term marketable securities | 3 | 7.7 | ||
Maturities | '4 months 24 days | [2] | '1 month 6 days | [2] |
Long-term Investments [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 39.4 | ' | ||
Aggregate Fair Value - Long term marketable securities | 39.4 | ' | ||
Long-term Investments [Member] | U.S. Treasury Bonds [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 5.1 | ' | ||
Aggregate Fair Value - Long term marketable securities | 5.1 | ' | ||
Maturities | '3 years | [2] | ' | |
Long-term Investments [Member] | Municipal [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 0.8 | ' | ||
Aggregate Fair Value - Long term marketable securities | 0.8 | ' | ||
Maturities | '1 year 3 months 18 days | [2] | ' | |
Long-term Investments [Member] | U.S. Government Agency Bonds [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 30.5 | ' | ||
Aggregate Fair Value - Long term marketable securities | 30.5 | ' | ||
Maturities | '3 years 8 months 12 days | [2] | ' | |
Long-term Investments [Member] | Certificates Of Deposit [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost Basis | 3 | ' | ||
Aggregate Fair Value - Long term marketable securities | $3 | ' | ||
Maturities | '3 years 7 months 6 days | [2] | ' | |
[1] | Short-Term and Long-Term Marketable Securities — The carrying amount and fair value of the marketable securities are equivalent since the Company accounts for these instruments at fair value. The Company’s government agency bonds and commercial paper are valued using third party broker quotes. The value of the Company’s government agency bonds is derived from quoted market information. The inputs in the valuation are generally classified as Level 1 given the active market for these securities; however if an active market does not exist, the inputs are recorded at a lower level in the fair value hierarchy. The value of commercial paper is derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. For the three and nine months ended September 25, 2014 and September 26, 2013, there was an inconsequential amount of net realized gains (losses) recognized in interest income and an inconsequential amount of net unrealized holding gains (losses) included in other comprehensive income. Original cost of short-term marketable securities is based on the specific identification method. As of September 25, 2014 and December 26, 2013, there were no gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer. | |||
[2] | Maturities— Securities available for sale include obligations with various contractual maturity dates some of which are greater than one year. The Company considers the securities to be liquid and convertible to cash within 30 days. |
Derivative_Instruments_And_Hed2
Derivative Instruments And Hedging Activities (Narrative) (Details) (USD $) | Sep. 25, 2014 | Dec. 26, 2013 |
Derivative [Line Items] | ' | ' |
Derivative asset | $0 | $0 |
Derivative liability | 0 | 0 |
Amount outstanding related to cash flow hedges | 4,000,000 | ' |
Term Loans [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Debt instrument face amount | $270,000,000 | $270,000,000 |
Derivative_Instruments_And_Hed3
Derivative Instruments And Hedging Activities (Schedule Of Changes in AOCI By Component) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 |
Derivative Instruments And Hedging Activities [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ($3.20) | ($6.70) |
Amortization on discontinued cash flow hedges | 2.6 | 2.6 | 7.6 | 7.8 |
Total amounts reclassified from AOCI | ' | ' | 7.6 | 7.8 |
Noncontrolling interest on reclassifications | ' | ' | -4.1 | -4.2 |
Tax effect on reclassifications | ' | ' | -1.4 | -1.4 |
Net other comprehensive income | ' | ' | 2.1 | 2.2 |
Impact of subsidiary ownership changes | ' | ' | ' | 0.3 |
Balance at end of period | ($1.10) | ($4.20) | ($1.10) | ($4.20) |
Segment_Reporting_Narrative_De
Segment Reporting (Narrative) (Details) (Advertising [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | |
Advertising [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Percentage of revenue | 100.00% | 94.40% | 100.00% | 93.60% |
Segment_Reporting_Schedule_Of_
Segment Reporting (Schedule Of Segment Operating Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Revenue | $100.80 | $135.10 | $270.90 | $340.10 | ||
Operating costs | 27.9 | 37.1 | 83.8 | 104.7 | ||
Selling and marketing costs | 14.7 | 15.6 | 43.8 | 46.7 | ||
Administrative and other costs | 8.9 | 7.8 | 25.3 | 22.9 | ||
Depreciation and amortization | 8.6 | 7.2 | 24.2 | 18.8 | ||
Interest and other non-operating costs | 19.2 | 18.7 | 56.9 | 57.8 | ||
INCOME BEFORE INCOME TAXES | 21.5 | 48.7 | 36.9 | 89.2 | ||
Advertising [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Revenue | 100.8 | 127.6 | 270.9 | 318.2 | ||
Operating costs | 23.5 | 26.6 | 70.4 | 74.1 | ||
Selling and marketing costs | 14.4 | 14 | 42 | 42.1 | ||
Administrative and other costs | 0.6 | 0.7 | 2.1 | 1.7 | ||
INCOME BEFORE INCOME TAXES | 62.3 | 86.3 | 156.4 | 200.3 | ||
Fathom Events [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Revenue | ' | 7.5 | [1] | ' | 21.9 | [1] |
Operating costs | ' | 5.4 | [1] | ' | 15.4 | [1] |
Selling and marketing costs | ' | 0.8 | [1] | ' | 2.6 | [1] |
Administrative and other costs | ' | 0.2 | [1] | ' | 0.6 | [1] |
INCOME BEFORE INCOME TAXES | ' | 1.1 | [1] | ' | 3.3 | [1] |
Network, Administrative And Unallocated Costs [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Operating costs | 4.4 | 5.1 | 13.4 | 15.2 | ||
Selling and marketing costs | 0.3 | 0.8 | 1.8 | 2 | ||
Administrative and other costs | 8.3 | 6.9 | 23.2 | 20.6 | ||
Depreciation and amortization | 8.6 | 7.2 | 24.2 | 18.8 | ||
Interest and other non-operating costs | 19.2 | 18.7 | 56.9 | 57.8 | ||
INCOME BEFORE INCOME TAXES | ($40.80) | ($38.70) | ($119.50) | ($114.40) | ||
[1] | Fathom Events was sold on December 26, 2013 as discussed in Note 4—Related Party Transactions. |
Segment_Reporting_Summary_Of_R
Segment Reporting (Summary Of Revenue By Category) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 25, 2014 | Sep. 26, 2013 | Sep. 25, 2014 | Sep. 26, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Revenue | $100.80 | $135.10 | $270.90 | $340.10 | ||
National Advertising Revenue [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Revenue | 62.9 | 91.1 | 174 | 226 | ||
Local Advertising Revenue [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Revenue | 28.9 | 25 | 68.7 | 60.7 | ||
Founding Member Advertising Revenue From Beverage Concessionaire Agreements [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Revenue | 9 | 11.5 | 28.2 | 31.5 | ||
Fathom Consumer Revenue [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Revenue | ' | 7.5 | [1] | ' | 20.8 | [1] |
Fathom Business Revenue [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Revenue | ' | ' | ' | $1.10 | [1] | |
[1] | Fathom Events was sold on December 26, 2013 as discussed in Note 4—Related Party Transactions. |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (USD $) | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 25, 2014 | Oct. 29, 2014 |
Screenvision, LLC [Member] | Forecast [Member] | ' | ' |
Subsequent Events [Line Items] | ' | ' |
Termination fee of contract | 28.8 | ' |
Subsequent Event [Member] | ' | ' |
Subsequent Events [Line Items] | ' | ' |
Dividends payable, date declared | 29-Oct-14 | ' |
Cash dividends declared, per share | ' | $0.22 |
Cash dividends declared | ' | $12.90 |
Dividends payable, date of record | 20-Nov-14 | ' |
Dividends payable, date to be paid | 5-Dec-14 | ' |