Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | |
Dec. 27, 2018 | Feb. 22, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 27, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | National CineMedia, LLC | |
Entity Central Index Key | 1,527,190 | |
Entity Filer Category | Non-accelerated Filer | |
Current Fiscal Year End Date | --12-27 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | Yes | |
Entity Well-known Seasoned Issuer | No | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 157,637,220 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Millions | Dec. 27, 2018 | Dec. 28, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 7.2 | $ 4.6 |
Receivables, net of allowance of $6.0 and $6.0, respectively | 149.9 | 160.6 |
Prepaid administrative fees to managing member | 0.6 | 0.8 |
Amounts due from founding members, net | 5.8 | 0 |
Current portion of notes receivable- founding members (related parties of $4.2 and $4.2, respectively) | 5.6 | 4.2 |
Prepaid expenses and other current assets | 3.6 | 4.2 |
Total current assets | 172.7 | 174.4 |
NON-CURRENT ASSETS: | ||
Property and equipment, net of accumulated depreciation of $62.5 and $70.4, respectively | 33.6 | 30.7 |
Intangible assets, net of accumulated amortization of $172.7 and $145.4, respectively | 684.5 | 717.2 |
Long-term notes receivable, net of current portion - founding members | 0 | 4.1 |
Other investments | 3 | 3.5 |
Debt issuance costs, net | 5 | 1.3 |
Other assets | 0.7 | 1.5 |
Total non-current assets | 726.8 | 758.3 |
TOTAL ASSETS | 899.5 | 932.7 |
CURRENT LIABILITIES: | ||
CURRENT LIABILITIES: | 30 | 32.7 |
Amounts due to managing member | 27.7 | 38.3 |
Accrued expenses | 21.3 | 19.5 |
Accrued payroll and related expenses | 10 | 9.5 |
Accounts payable | 16.2 | 16.2 |
Deferred revenue | 7.3 | 7.1 |
Short-term debt | 2.7 | 0 |
Total current liabilities | 115.2 | 123.3 |
NON-CURRENT LIABILITIES: | ||
Long-term debt, net of debt issuance costs of $7.8 and $8.7, respectively | 920.9 | 923.3 |
Other liabilities | 4 | 2.1 |
Total non-current liabilities | 924.9 | 925.4 |
Total liabilities | 1,040.1 | 1,048.7 |
COMMITMENTS AND CONTINGENCIES (NOTE 11) | ||
MEMBERS’ EQUITY/(DEFICIT) | (140.6) | (116) |
TOTAL LIABILITIES AND EQUITY/(DEFICIT) | $ 899.5 | $ 932.7 |
BALANCE SHEETS (PARENTHETICAL)
BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Dec. 27, 2018 | Dec. 28, 2017 |
Allowance for doubtful accounts receivable | $ 6 | $ 6 |
Current portion of notes receivable- founding members (related parties of $4.2 and $4.2, respectively) | 5.6 | 4.2 |
Accumulated depreciation, property and equipment | 62.5 | 70.4 |
Accumulated amortization, intangible assets | 172.7 | 145.4 |
Debt issuance costs, long-term | 7.8 | 8.7 |
Related Party Founding Members | ||
Current portion of notes receivable- founding members (related parties of $4.2 and $4.2, respectively) | $ 4.2 | $ 4.2 |
STATEMENTS OF INCOME
STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Revenue | $ 441.4 | $ 426.1 | $ 447.6 |
OPERATING EXPENSES: | |||
Network costs | 13.3 | 15.8 | 17.1 |
Theater access fees—founding members (including fees to related parties of $69.0, $76.5 and $75.1, respectively) | 81.7 | 76.5 | 75.1 |
Selling and marketing costs | 66.5 | 72 | 72.8 |
Administrative and other costs | 30.5 | 25.1 | 23.6 |
Administrative fee—managing member | 17.8 | 12.8 | 20.2 |
Depreciation and amortization | 39.9 | 37.6 | 35.8 |
Total | 287.1 | 272.2 | 274.6 |
OPERATING INCOME | 154.3 | 153.9 | 173 |
NON-OPERATING EXPENSES: | |||
Interest on borrowings | 55.4 | 52.8 | 54 |
Interest income | (0.4) | (0.7) | (0.9) |
Loss on early retirement of debt, net | 0.7 | 0 | 10.4 |
Other non-operating income | (0.2) | (0.3) | 0 |
Total | 55.5 | 51.8 | 63.5 |
INCOME BEFORE INCOME TAXES | 98.8 | 102.1 | 109.5 |
Income tax expense | 0.4 | 0.2 | 0.2 |
NET INCOME | 98.4 | 101.9 | 109.3 |
COMPREHENSIVE INCOME | 98.4 | 101.9 | 109.3 |
Advertising Operating Costs | |||
OPERATING EXPENSES: | |||
Advertising operating costs | $ 37.4 | $ 32.4 | $ 30 |
STATEMENTS OF INCOME (PARENTHET
STATEMENTS OF INCOME (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Revenue from founding members | $ 29.9 | $ 29.1 | $ 30.2 |
Related Party Founding Members | |||
Fees to related parties | $ 69 | $ 76.5 | $ 75.1 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 28, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
NET INCOME, NET OF TAX OF $0.2, $0.2 AND $0.1, RESPECTIVELY | $ 47.9 | $ 28.5 | $ 25 | $ (3) | $ 57.1 | $ 37.3 | $ 15.4 | $ (7.9) | $ 98.4 | $ 101.9 | $ 109.3 |
OTHER COMPREHENSIVE INCOME: | |||||||||||
COMPREHENSIVE INCOME | $ 98.4 | $ 101.9 | $ 109.3 |
STATEMENTS OF COMPREHENSIVE I_2
STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Income tax expense | $ 0.4 | $ 0.2 | $ 0.2 |
STATEMENTS OF MEMBERS' EQUITY_
STATEMENTS OF MEMBERS' EQUITY/ (DEFICIT) - USD ($) $ in Millions | Total | Managing member | Related Party Founding Members |
Beginning balance at Dec. 31, 2015 | $ (266.5) | ||
Balance, units at Dec. 31, 2015 | 135,142,972 | ||
Distribution | $ (57.5) | $ (75.1) | |
Units issued for purchase of intangible asset | $ 21.1 | ||
Units issued for purchase of intangible asset, units | 1,416,515 | ||
COMPREHENSIVE INCOME | $ 109.3 | ||
Unit settlement for share-based compensation | $ 0.5 | ||
Unit settlement for share-based compensation (in shares) | 635,258 | ||
Share-based compensation expense/capitalized | 11.3 | ||
Ending balance at Dec. 29, 2016 | $ (256.9) | ||
Balance, units at Dec. 29, 2016 | 137,194,745 | ||
Distribution | $ (75.9) | (85) | |
Units issued for purchase of intangible asset | $ 201.8 | ||
Units issued for purchase of intangible asset, units | 16,118,779 | ||
COMPREHENSIVE INCOME | $ 101.9 | ||
Unit settlement for share-based compensation | $ (9.4) | ||
Unit settlement for share-based compensation (in shares) | 767,810 | ||
Share-based compensation expense/capitalized | 7.5 | ||
Ending balance at Dec. 28, 2017 | $ (116) | ||
Balance, units at Dec. 28, 2017 | 154,081,334 | ||
Distribution | $ (69.1) | $ (72.3) | |
Units issued for purchase of intangible asset | $ 15.9 | ||
Units issued for purchase of intangible asset, units | 2,821,710 | ||
COMPREHENSIVE INCOME | $ 98.4 | ||
Unit settlement for share-based compensation | $ (1.7) | ||
Unit settlement for share-based compensation (in shares) | 734,176 | ||
Share-based compensation expense/capitalized | 4.4 | ||
Ending balance at Dec. 27, 2018 | $ (140.6) | ||
Balance, units at Dec. 27, 2018 | 157,637,220 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 98,400,000 | $ 101,900,000 | $ 109,300,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 39,900,000 | 37,600,000 | 35,800,000 |
Non-cash share-based compensation | 4,400,000 | 7,200,000 | 10,900,000 |
Impairment on investment | 400,000 | 3,100,000 | 700,000 |
Amortization of debt issuance costs | 2,600,000 | 2,600,000 | 2,600,000 |
Loss on early retirement of debt, net | 700,000 | 0 | 10,400,000 |
Other | (200,000) | (300,000) | 0 |
Cash distributions from non-consolidated entities | 200,000 | 300,000 | 200,000 |
Proceeds from lessor on purchases of property, plant, and equipment | 1,000,000 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Receivables, net | 10,700,000 | (100,000) | (13,500,000) |
Accounts payable and accrued expenses | 1,100,000 | 2,200,000 | (2,100,000) |
Amounts due to founding members and managing member, net | (400,000) | 500,000 | (3,000,000) |
Deferred revenue | 200,000 | (3,100,000) | 0 |
Other, net | 2,300,000 | 300,000 | (1,000,000) |
Net cash provided by operating activities | 161,300,000 | 152,200,000 | 150,300,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (14,200,000) | (11,600,000) | (12,900,000) |
Acquisition of a business | 0 | (200,000) | 0 |
Purchases of intangible assets from network affiliates | (100,000) | (2,100,000) | (2,300,000) |
Proceeds from restricted cash | 0 | 300,000 | 0 |
Proceeds from notes receivable - founding members (including payments from related parties of $1.4, $5.6 and $2.8, respectively) | 2,800,000 | 5,600,000 | 2,800,000 |
Net cash used in investing activities | (11,500,000) | (8,000,000) | (12,400,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from revolving credit facility | 193,200,000 | 80,000,000 | 126,000,000 |
Repayments of revolving credit facility | (178,200,000) | (83,000,000) | (177,000,000) |
Proceeds from term loan facility | 270,000,000 | 0 | 0 |
Repayments of term loan facility | (270,700,000) | 0 | 0 |
Proceeds from issuance of Senior Notes due 2026 | 0 | 0 | 250,000,000 |
Repayments of Senior Notes due 2026 | (14,200,000) | 0 | 0 |
Redemption of Senior Notes due 2021 | 0 | 0 | (207,900,000) |
Payment of debt issuance costs | (6,900,000) | 0 | (4,800,000) |
Founding member integration and other encumbered theater payments (including payments from related parties of $17.2, $12.9 and $2.4, respectively) | 22,700,000 | 12,900,000 | 2,400,000 |
Distributions to founding members and managing member | (161,400,000) | (157,200,000) | (119,400,000) |
Unit settlement for share-based compensation | (1,700,000) | (3,000,000) | 500,000 |
Net cash used in financing activities | (147,200,000) | (150,300,000) | (130,200,000) |
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 2,600,000 | (6,100,000) | 7,700,000 |
Cash, cash equivalents, and restricted cash at beginning of period | 4,600,000 | 10,700,000 | 3,000,000 |
Cash, cash equivalents, and restricted cash at end of period | 7,200,000 | 4,600,000 | 10,700,000 |
Supplemental disclosure of non-cash financing and investing activity: | |||
Purchase of an intangible asset with NCM LLC equity | 15,900,000 | 201,800,000 | 21,100,000 |
Accrued distributions to founding members and managing member | 54,500,000 | 74,500,000 | 70,800,000 |
Accrued integration and other encumbered theater payments from founding members (including accrued payments due from related parties of $0.4, $0.0 and $0.0, respectively) | 7,800,000 | 9,000,000 | 0 |
Accrued purchases of property and equipment | 1,100,000 | 400,000 | 0 |
Increase in cost and equity method investments | 0 | 0 | 2,000,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 54,100,000 | 49,900,000 | 52,500,000 |
Cash paid for income taxes, net of refunds | $ 200,000 | $ 400,000 | $ 300,000 |
STATEMENTS OF CASH FLOWS STATEM
STATEMENTS OF CASH FLOWS STATEMENTS OF CASH FLOWS (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Payments from related parties, notes receivable | $ 2.8 | $ 5.6 | $ 2.8 |
Payments from related parties, theater payments | 22.7 | 12.9 | 2.4 |
Accrued payments due from related parties | 7.8 | 9 | 0 |
Related Party Founding Members | |||
Payments from related parties, notes receivable | 1.4 | 5.6 | 2.8 |
Payments from related parties, theater payments | 17.2 | 12.9 | 2.4 |
Accrued payments due from related parties | $ 0.4 | $ 0 | $ 0 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 27, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NCM LLC commenced operations on April 1, 2005 and is owned by NCM, Inc., Cinemark and Regal. NCM LLC operates the largest cinema advertising network reaching movie audiences in North America, allowing NCM LLC to sell advertising under ESAs with the founding members and certain third-party theater circuits under long-term network affiliate agreements referred to in this document as “network affiliates”, which have terms from one to twenty years. As of December 27, 2018 , the Company had 157,637,220 common membership units outstanding, of which 76,976,398 ( 48.8% ) were owned by NCM, Inc., 41,142,178 ( 26.1% ) were owned by Regal, 39,518,644 ( 25.1% ) were owned by Cinemark and 0 ( 0.0% ) 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. On July 5, 2018, AMC closed on the sale of 100.0% of its remaining NCM LLC membership units to Cinemark and Regal. Basis of Presentation The Company has prepared its Financial Statements and related notes of NCM LLC in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain reclassifications have been made to the prior years’ financial statements to conform to the current presentation (refer to the Balance Sheet, whereby the Company presented prepaid expenses and other assets as one line item). As a result of the various related-party agreements discussed in Note 7— 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. Advertising is the principal business activity of the Company and is the Company’s only reportable segment under the requirements of ASC 280 – Segment Reporting. Estimates —The preparation of the 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 and share-based compensation. Actual results could differ from those estimates. Significant Accounting Policies Accounting Period — The Company has a 52-week or 53-week fiscal year ending on the first Thursday after December 25. Fiscal years 2016, 2017 and 2018 contained 52 weeks. Throughout this document, the fiscal years are referred to as set forth below: Fiscal Year Ended Reference in this Document December 27, 2018 2018 December 28, 2017 2017 December 29, 2016 2016 Revenue Recognition —The Company derives revenue principally from the advertising business, which includes on-screen and LEN advertising and lobby promotions and advertising on websites and mobile applications owned by the Company and other companies. Revenue is recognized over time as the customer receives the benefits provided by our advertising services and we have the right to payment for the performance to date. The Company considers the terms of each arrangement to determine the appropriate accounting treatment as more fully discussed in Note 2— Revenue from Contracts with Customers . Operating Costs —Advertising-related operating costs primarily include personnel and other costs related to advertising fulfillment, payments due to unaffiliated theater circuits under the network affiliate agreements, and to a lesser extent, production costs of non-digital advertising. Payments to the founding members of a theater access fee is comprised of a payment per theater attendee, a payment per digital screen and a payment per digital cinema projector equipped in the theaters, all of which escalate over time. Refer to Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations ” included elsewhere in this document. Network costs include personnel, satellite bandwidth, repairs, and other costs of maintaining and operating the digital network and preparing advertising and other content for transmission across the digital network. Cash and Cash Equivalents —All highly liquid debt instruments and investments purchased with an original maturity of three months or less are classified as cash equivalents and are considered available-for-sale securities. There are cash balances in a bank in excess of the federally insured limits or in the form of a money market demand account with a major financial institution. 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 national and regional advertising is reduced by transacting with founding members or large, national advertising agencies who have strong reputations in the advertising industry and clients with stable financial positions. The Company has smaller contracts with thousands of local clients that are not individually significant. As of December 27, 2018 and December 28, 2017 , 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 years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , there were no customers that accounted for more than 10% of revenue. Receivables consisted of the following (in millions): As of December 27, 2018 December 28, 2017 Trade accounts $ 154.0 $ 166.4 Other 1.9 0.2 Less: Allowance for doubtful accounts (6.0 ) (6.0 ) Total $ 149.9 $ 160.6 Long-lived Assets —Property and equipment is stated at cost, net of accumulated depreciation or amortization. Generally, the equipment associated with the digital network of the founding member theaters is owned by the founding members, while the equipment associated with network affiliate theaters is owned by the Company. Major renewals and improvements are capitalized, while replacements, maintenance, and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. The Company records depreciation and amortization using the straight-line method over the following estimated useful lives: Equipment 4-10 years Computer hardware and software 3-5 years Leasehold improvements Lesser of lease term or asset life Software and website development costs developed or obtained for internal use are accounted for in accordance with ASC 350— Internal Use Software and ASC 350 – We bsite Development Costs . The subtopics require the capitalization of certain costs incurred in developing or obtaining software for internal use. Software costs related primarily to the Company’s inventory management systems, digital products, digital network distribution system (DCS) and website development costs, which are included in equipment, and are depreciated over three to five years. As of December 27, 2018 and December 28, 2017 , the Company had a net book value of $17.4 million and $16.5 million , respectively, of capitalized software and website development costs. Depreciation expense related to software and website development was approximately $6.7 million , $6.0 million and $3.9 million for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively. For the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , the Company recorded $1.7 million , $3.6 million and $3.4 million in research and development expense, respectively. The Company assesses impairment of long-lived assets pursuant with ASC 360 – Property, Plant and Equipment. This includes determining if certain triggering events have occurred that could affect the value of an asset. The Company recorded losses of $0.5 million , $0.1 million and $0.2 million related to the write-off of property, plant and equipment during the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively. These balances have been included within depreciation expense within the respective audited Statements of Income given the immaterial nature of the balances. Intangible assets —Intangible assets consist of contractual rights to provide its services within the theaters of the founding members and network affiliates and are stated at cost, net of accumulated amortization. The Company records amortization using the straight-line method over the contractual life of the intangibles, corresponding to the term of the ESAs or the term of the contract with the network affiliate. Intangible assets are tested for impairment at least annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. In its impairment testing, the Company estimates the fair value of its ESAs or network affiliate agreements by determining the estimated future cash flows associated with the ESAs or network affiliate agreements. If the estimated fair value is less than the carrying value, the intangible asset is written down to its estimated fair value. Significant judgment is involved in estimating long-term cash flow forecasts. The Company has not recorded impairment charges related to intangible assets. Amounts Due to/from Founding Members —Amounts due to/from founding members include amounts due for the theater access fee, offset by a receivable for advertising time purchased by the founding members on behalf of their beverage concessionaire, plus any amounts outstanding under other contractually obligated payments. Payments to or received from the founding members against outstanding balances are made monthly. Available cash distributions are made quarterly. Amounts Due to Managing Member —Amounts due to the managing member include amounts due under the NCM LLC operating agreement and other contractually obligated payments. Payments to or received from the managing member against outstanding balances are made monthly. Income Taxes —NCM LLC is not a taxable entity for federal income tax purposes. Accordingly, NCM LLC does not directly pay federal income tax. NCM LLC’s taxable income or loss, which may vary substantially from the net income or loss reported in the Statements of Income, is includable in the federal income tax returns of each founding member and the managing member. NCM LLC is, however, a taxable entity under certain state jurisdictions. Further, in some state instances, NCM LLC may be required to remit composite withholding tax based on its results on behalf of its founding members and managing member. Debt Issuance Costs —In relation to the issuance of outstanding debt discussed in Note 8— Borrowings , there is a balance of $12.8 million and $10.0 million in deferred financing costs as of December 27, 2018 and December 28, 2017 , respectively. The debt issuance costs are being amortized on a straight-line basis over the terms of the underlying obligations and are included in interest on borrowings, which approximates the effective interest method. Debt issuance costs are written-off in the event that the underlying debt is extinguished through partial or full repayment of the obligation. The changes in debt issuance costs are as follows (in millions): Years Ended December 27, 2018 December 28, 2017 December 29, 2016 Beginning balance $ 10.0 $ 12.6 $ 12.9 Debt issuance payments 6.4 — 4.8 Amortization of debt issuance costs (2.6 ) (2.6 ) (2.6 ) Write-off of debt issuance costs (1.0 ) — (2.5 ) Ending balance $ 12.8 $ 10.0 $ 12.6 Share-Based Compensation —Through 2012, NCM, Inc. issued stock options, restricted stock and restricted stock units. Since 2013, NCM, Inc. has only issued restricted stock and restricted stock units. Restricted stock and restricted stock units vest upon the achievement of NCM, Inc. three -year cumulative performance measures and service conditions or only service conditions. Compensation expense of restricted stock that vests upon the achievement of NCM, Inc. 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, NCM, Inc. 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. Under the fair value recognition provisions of ASC 718 Compensation – Stock Compensation , the Company recognizes share-based compensation net of an estimated forfeiture rate, and therefore only recognizes compensation cost for those shares expected to vest over the requisite service period of the award. Refer to Note 9— Share-Based Compensation for more information. 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. Recently Adopted Accounting Pronouncements During the first quarter of 2018, the Company adopted Accounting Standards Update 2014-9, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-9”) using the modified retrospective transition method. The Company identified the same performance obligations under ASU 2014-9 as compared with deliverables and separate units of account previously identified. ASU 2014-9 impacted the accounting for barter transactions where the Company exchanges advertising time for products and services used principally for selling and marketing activities. The Company historically recognized revenue for these transactions at the estimated fair value of the advertising exchanged based on the fair value received for similar advertising from cash paying customers. In accordance with the new guidance, the Company recognized revenue for these transactions based upon the fair value of the products and services received, rather than the value of the advertising provided. The modified retrospective transition method allows entities to apply the new revenue standard prospectively and record a cumulative-effect adjustment to the opening balance of retained earnings in the period the new revenue standard is first applied. The Company elected to apply the new revenue standard only to contracts that were not completed as of the adoption date. Upon the adoption of ASU 2014-9 on December 29, 2017, the Company recorded a $0.2 million cumulative-effect adjustment related to the change in accounting for barter transactions on contracts that were not completed as of December 29, 2017 in the audited Balance Sheet. The Company’s adoption of ASU 2014-9 did not have a material impact on the audited Financial Statements. The Company has incorporated additional disclosures in Note 2— Revenue from Contracts with Customers to comply with ASU 2014-9. During the first quarter of 2018, the Company adopted Accounting Standards Update 2016-1, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-1”), which requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in earnings (rather than reported through other comprehensive income) and updates certain presentation and disclosure requirements. In February 2018, the FASB issued Accounting Standards Update 2018-3, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2018-3”). These amendments clarify the guidance on certain topics referred to in ASU 2016-1. The Company has incorporated changes to the methodology utilized to value the Company’s investments and changes to disclosures in its notes to the audited Financial Statements to comply with ASU 2016-1. During the first quarter of 2018, the Company adopted Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”) on a retrospective basis. ASU 2016-15 provides guidance on certain cash receipts and cash payments presented and classified in the statement of cash flows. The adoption of ASU 2016-15 did not have a material impact on the audited Financial Statements or notes thereto. During the first quarter of 2018, the Company adopted Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) on a retrospective basis. ASU 2016-18 requires that the reconciliation of the beginning-of-period and end-of-period amounts shown in the statement of cash flows include restricted cash and restricted cash equivalents. The Company has adjusted the audited Statement of Cash Flow for the years ended December 27, 2018, December 28, 2017, and December 29, 2016 to include the restricted cash balance within the aforementioned captions. The adoption of ASU 2016-18 had no other impact on the audited Financial Statements or notes thereto. During the third quarter of 2018, the Company adopted Accounting Standards Update 2018-9, Codification Improvements ("ASU 2018-9”), which made minor amendments to the codification in order to clarify, correct errors in, eliminate inconsistencies and provide clarifications in current guidance. The ASU amends Subtopics 470-50, Debt-Modifications and Extinguishments and 718-740, Compensation-Stock Compensation-Income Taxes and was effective immediately. The adoption of ASU 2018-9 did not have a material impact on the audited Financial Statements or notes thereto. During the fourth quarter of 2018, the Company adopted Accounting Standards Update 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"), which clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company early adopted ASU 2018-15 in the fourth quarter of 2018. The adoption of ASU 2018-15 did not have a material impact on the audited Financial Statements or notes thereto. During the fourth quarter of 2018, the Company adopted a final rule issued by the SEC amending certain disclosure requirements deemed by the commission to be redundant, duplicative, overlapping, outdated or superseded. The rule also added requirements to disclose the changes in each caption of stockholders’ equity for the current and comparative year-to-date periods, with subtotals for each interim period. The Company believes that adopting the guidance will result in changes to the presentation of the audited Statement of Equity as a quarter to date equity rollforward is now required for the current and comparable period. The Company has implemented the annual amended disclosure requirements and will implement the quarterly amended disclosure requirements in the first quarter of 2019. Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update 2016-2, Leases (Topic 842) (“ASU 2016-2”). ASU 2016-2 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Under the original standard, a modified retrospective transition approach was required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In July 2018, the FASB issued Accounting Standards Update 2018-11 which allows companies to elect the “Comparatives Under 840” option where only the current period financial statements and related disclosures are presented in accordance with the new standard. The Company is still evaluating which transition approach to apply upon adoption. The Company expects to utilize the following practical expedients: (i) not being required to separate lease and nonlease components when accounting for the lease; and (ii) not accounting for short-term leases under the new standard. The Company is still evaluating the impact of the adoption of ASU 2016-2 on the ESA and affiliate agreements, and thus, whether it will have a material impact on the audited Consolidated Financial Statements. The Company will adopt the standard and its provisions effective December 28, 2018 and will incorporate additional disclosures in its notes to its audited Financial Statements to comply with ASU 2016-2 effective in the first quarter of 2019. The Company has designed and will implement changes to certain processes and internal controls upon the adoption of ASU 2016-2. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements (“ASU 2016-13”), which requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted and is to be adopted on a modified retrospective basis. The Company is currently evaluating the impact that adopting this guidance will have on the audited Financial Statements or notes thereto. In June 2018, the FASB issued Accounting Standards Update 2018-7, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-7”), which amends Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-7 is effective for fiscal years beginning December 15, 2018, with early adoption permitted. The Company does not expect the adoption of ASU 2018-07 to have a material impact on the audited Financial Statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with partial early adoption permitted for eliminated disclosures. The method of adoption varies by the disclosure. The Company is currently evaluating the impact that adopting this guidance will have on the audited 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 audited Financial Statements or notes thereto. |
Revenue From Contracts with Cus
Revenue From Contracts with Customers | 12 Months Ended |
Dec. 27, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts with Customers | 2. REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition The Company derives revenue principally from the sale of advertising to national, regional and local businesses in Noovie, the Company’s cinema advertising and entertainment pre-show. The Company also sells advertising through the LEN, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theater lobbies. In addition, the Company sells online and mobile advertising through the Cinema Accelerator digital product. The Company also has a long-term agreement to exhibit the advertising of the founding members’ beverage suppliers. National and regional advertising, including advertising under the beverage concessionaire and PSA agreements, are sold on a CPM basis. The Company recognizes national and regional advertising over time as impressions (or theater attendees) are delivered. National advertising is also sold to content partners. The content partners provide the Company with original entertainment content segments, typically 90 seconds in length, that are entertaining, informative, or educational in nature in the Noovie pre-show and they make commitments to buy a portion of the Company’s advertising inventory at a specified CPM. The Company recognizes revenue for the content segments ratably over time as the content segments air. Local advertising is sold on a per-screen, per-week basis and to a lesser extent on a CPM basis. The Company recognizes local on-screen advertising revenue over the period in which the advertising airs as dictated by the underlying sales contracts. When sold separately, LEN advertising and lobby promotions are sold based on length and breadth of the promotion. The Company recognizes revenue derived from lobby network and promotions over time when the advertising is displayed in theater lobbies. The Company sells online and mobile advertising on a CPM basis. The Company recognizes revenue from branded entertainment websites and mobile applications over time as the online or mobile impressions are served. Customer contracts often include multiple advertising services to reach the moviegoer at multiple points during a theater experience. The Company considers each of these advertising services to represent distinct performance obligations of the contract and allocates a portion of the transaction price to each service based upon the standalone selling price of the service, when available. When standalone selling prices are not available or not applicable given the nature of the customer, the Company allocates the transaction price based upon all information that is reasonably available and maximizes the use of observable inputs. Methods utilized include the adjusted market and expected cost-plus margin approaches. The Company enters into barter transactions that exchange advertising program time for products and services used principally for selling and marketing activities. The Company records barter transactions at the estimated fair value of the products and services received. Revenue for advertising barter transactions are recognized when advertising is provided, and products and services received are charged to expense when used. Revenue from barter transactions for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 was $5.9 million , $0.8 million and $2.5 million , respectively. Expense recorded from barter transactions for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 was $5.0 million , $1.4 million and $2.3 million , respectively. The Company makes contractual guarantees to deliver a specified number of impressions to view the customers’ advertising. If the contracted number of impressions are not delivered, the Company will run additional advertising to deliver the contracted impressions at a later date. The deferred portion of the revenue associated with undelivered impressions is referred to as a make-good provision. In rare cases, the Company will make a cash refund of the portion of the contract related to the undelivered impressions. Given the limited history of cash settlements of the make-good provision, the Company recognizes revenue on the guaranteed contracts as the impressions are delivered and no reserve for variable consideration is recorded. The Company defers the revenue associated with the make-good until the advertising airs to the theater attendance specified in the advertising contract. The make-good provision is recorded within accrued expenses in the Consolidated Balance Sheets. As of December 27, 2018 and December 28, 2017 , the Company had a make-good provision of $ 8.0 million and $ 5.5 million, respectively. The Company recognizes revenue as the performance obligation for the advertising services is satisfied. Invoices are generated following the processing of each revenue contract and payment is due from the customer within 30 days of the invoice date. Customers select to pay the invoice in full at the start of a contract or through equal monthly installments over the course of the contract. The Company records deferred revenue when cash payments are received, or invoices are issued, in advance of revenue being earned. Deferred revenue is classified as a current liability as it is expected to be earned within the next twelve months. The Company has certain contracts with two -year terms that are noncancelable following a specified date within the contract period. The estimated revenue expected to be recognized in the future related to these contracted performance obligations that are unsatisfied (or partially unsatisfied) as of December 27, 2018 , was $ 60.3 million, which is expected to be recognized in 2019. Agreements with a duration less than one year are not included within this disclosure as the Company elected to use the practical expedient in ASC 606-10-50-14 for those contracts. In addition, other of the Company’s contracts longer than one year that are cancelable are not included within this disclosure. Disaggregation of Revenue The Company disaggregates revenue based upon the type of customer: national; local and regional; and beverage concessionaire. This method of disaggregation is in alignment with how revenue is reviewed by management and discussed with and historically disclosed to investors. The following table summarizes revenue from contracts with customers for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 : Years ended December 27, 2018 December 28, 2017 December 29, 2016 National advertising revenue $ 312.0 $ 296.3 $ 311.9 Local and regional advertising revenue 98.0 99.9 107.0 Founding member advertising revenue from beverage concessionaire agreements 31.4 29.9 28.7 Total revenue $ 441.4 $ 426.1 $ 447.6 Deferred Revenue and Unbilled Accounts Receivable The changes in deferred revenue for the year ended December 27, 2018 were as follows (in millions): Year ended December 27, 2018 Balance at beginning of period $ (7.1 ) Performance obligations satisfied 7.1 New contract liabilities (7.3 ) Balance at end of period $ (7.3 ) Unbilled accounts receivable is classified as a current asset as it is expected to be billed within the next twelve months. As of December 27, 2018 and December 28, 2017 , the Company had $6.0 million and $10.6 million in unbilled accounts receivable, included within the accounts receivable balance. Practical Expedients and Exemptions The Company expenses sales commissions when incurred as the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses in the audited Consolidated Statement of Income. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 27, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | . PROPERTY AND EQUIPMENT The following is a summary of property and equipment, at cost less accumulated depreciation (in millions): As of December 27, December 28, Equipment, computer hardware and software $ 90.8 $ 92.9 Leasehold improvements 2.4 4.0 Less: Accumulated depreciation (62.5 ) (70.4 ) Subtotal 30.7 26.5 Construction in progress 2.9 4.2 Total property and equipment $ 33.6 $ 30.7 For the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , the Company recorded depreciation expense of $12.6 million , $10.9 million , and $8.6 million , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | . INTANGIBLE ASSETS The Company’s intangible assets consist of contractual rights to provide its services within the theaters of the founding members and network affiliates. The Company records amortization using the straight-line method over the contractual life of the intangibles, corresponding to the term of the ESAs or the term of the contract with the network affiliate. 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 Company’s common membership units are fully convertible into NCM, Inc.’s common stock. The Company also records intangible assets for upfront fees paid to network affiliates upon commencement of a network affiliate agreement. Pursuant to ASC 350-10— Intangibles—Goodwill and Other , 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 contract with the network affiliate. 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 theater additions or dispositions during the previous year. 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 theaters, 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 adjustment date. If an existing on-screen advertising agreement with an alternative provider is in place with respect to any acquired theaters, the founding members may elect to receive common membership units related to those encumbered theaters in connection with the Common Unit Adjustment. If the founding members make this election, then 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”). Because the Carmike and Rave theaters are subject to an existing on-screen advertising agreement with an alternative provider, AMC and Cinemark will make integration payments to NCM LLC. The integration payments will continue until the earlier of (i) the date the theaters are transferred to NCM LLC’s network or (ii) the expiration of the ESA. 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 theaters with pre-existing advertising agreements. The ESA additionally entitles NCM LLC to payments related to the founding members’ on-screen advertising commitments under their beverage concessionaire agreements for encumbered theaters (“encumbered theater payments”). These payments are also accounted for as a reduction to the intangible asset. If common membership units are issued to a founding member for newly acquired theaters 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 theaters for all of its services. The following is a summary of the Company’s intangible asset’s activity (in millions) during 2018 and 2017 : As of Additions (1) Amortization Integration and other encumbered theater payments (3) As of Gross carrying amount $ 862.6 $ 16.0 $ — $ (21.4 ) $ 857.2 Accumulated amortization (145.4 ) — (27.3 ) — (172.7 ) Total intangible assets, net $ 717.2 $ 16.0 $ (27.3 ) $ (21.4 ) $ 684.5 As of Additions (2) Amortization Integration and other encumbered theater payments (3) As of Gross carrying amount $ 679.4 $ 204.1 $ — $ (20.9 ) $ 862.6 Accumulated amortization (118.9 ) — (26.5 ) — (145.4 ) Total intangible assets, net $ 560.5 $ 204.1 $ (26.5 ) $ (20.9 ) $ 717.2 ______________________________________________________________________ (1) During the first quarter of 2018, the Company issued 2,821,710 ( 3,736,860 issued, net of 915,150 returned) common membership units to its founding members for the rights to exclusive access to the theater screens and attendees added, net of dispositions by the founding members to our network during the 2017 fiscal year and the Company recorded a net intangible asset of $15.9 million during the first quarter of 2018 as a result of the Common Unit Adjustment. During 2018, the Company purchased intangible assets for $0.1 million associated with network affiliate agreements. (2) During the first quarter of 2017, the Company issued 2,351,029 common membership units to its founding members for the rights to exclusive access to net new theater screens and attendees added by the founding members to NCM LLC’s network during 2016. During the first quarter of 2017, the Company issued 18,425,423 common membership units to AMC in respect of the annual attendance at the acquired Carmike theaters in accordance with the Common Unit Adjustment Agreement. AMC’s acquisition of Carmike meets the criteria for a Common Unit Adjustment because it resulted in an extraordinary attendance increase of approximately 9.5% . Further, the Final Judgment required AMC to transfer advertising rights to 17 theaters from NCM LLC to another advertising provider. AMC surrendered 4,657,673 NCM LLC common membership units in respect of such theaters. The 4,657,673 NCM LLC common membership units were comprised of (i) 2,850,453 NCM LLC common membership units pursuant to the adjustment for divested theaters in the Common Unit Adjustment Agreement and (ii) an additional 1,807,220 NCM LLC common membership units valued at $25.0 million to compensate for NCM LLC’s lost operating income for these theaters during the 10 -year term of the Final Judgment. NCM LLC recorded a net intangible asset of $201.8 million in the first quarter of 2017 as a result of these Common Unit Adjustments. During 2017, the Company purchased intangible assets for $2.1 million associated with network affiliate agreements. During 2017, the Company purchased intangible assets for $0.2 million associated with acquired software. (3) Carmike and Rave Cinemas had pre-existing advertising agreements for some of the theaters it owned prior to their acquisitions by AMC and Cinemark. As a result, AMC and Cinemark will make integration and other encumbered theater payments over the remaining term of those agreements. During the year ended December 27, 2018 and December 28, 2017, the Company recorded a reduction to net intangible assets of $21.4 million and $20.9 million, respectively, related to integration and other encumbered theater payments due from AMC and Cinemark. During the year ended December 27, 2018 and December 28, 2017, AMC and Cinemark paid a total of $22.7 million and $12.9 million, respectively, related to integration and other encumbered theater payments. As of December 27, 2018 and December 28, 2017 , the Company’s intangible assets related to the founding members, net of accumulated amortization was $657.6 million and $687.1 million , respectively with weighted average remaining lives of 18.2 years and 19.2 years as of December 27, 2018 and December 28, 2017 , respectively. As of December 27, 2018 and December 28, 2017 , the Company’s intangible assets related to the network affiliates, net of accumulated amortization was $26.9 million and $30.0 million , respectively with weighted average remaining lives of 10.0 years and 11.0 years as of December 27, 2018 and December 28, 2017 , respectively. As of December 27, 2018 and December 28, 2017 , the Company’s intangible assets related to acquired software, net of accumulated amortization was $0.1 million and $0.1 million , respectively with weighted average remaining lives of 1.5 years and 2.5 years as of December 27, 2018 and December 28, 2017 , respectively. For the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , the Company recorded amortization expense of $27.3 million , $26.5 million and $27.0 million , respectively. The estimated aggregate amortization expense for each of the five succeeding years is as follows (in millions): Year Amortization 2018 $ 27.3 2019 27.1 2020 27.1 2021 26.8 2022 26.4 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 27, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | . ACCRUED EXPENSES The following is a summary of the Company’s accrued expenses (in millions): As of December 27, December 28, Make-good reserve $ 8.0 $ 5.5 Accrued interest 10.3 11.6 Deferred rent 0.2 0.8 Other accrued expenses 2.8 1.6 Total accrued expenses $ 21.3 $ 19.5 |
Members' Deficit
Members' Deficit | 12 Months Ended |
Dec. 27, 2018 | |
Equity [Abstract] | |
Members' Deficit | . MEMBERS’ DEFICIT The founding members received all proceeds from NCM, Inc.’s IPO and related issuances of debt, except for amounts needed to pay out-of-pocket costs of the financings and other expenses. The ESAs with the founding members were amended and restated in conjunction with the IPO under which NCM LLC became the exclusive provider of advertising services to the founding members for a 30 -year term. In conformity with accounting guidance of the SEC concerning monetary consideration paid to promoters, such as the founding members, in exchange for property conveyed by the promoters, the excess over predecessor cost was treated as a special distribution. Because the founding members had no cost basis in the ESAs, nearly all payments to the founding members with the proceeds of the IPO and related debt, have been accounted for as distributions. The distributions by NCM LLC to the founding members made at the date of the IPO resulted in a members’ deficit. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 27, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | . RELATED PARTY TRANSACTIONS Founding Member Transactions — In connection with the IPO, the Company entered into several agreements to define and regulate the relationships among the Company, NCM, Inc., and the founding members, which are outlined below. Following the sale of 100.0% of AMC's remaining NCM LLC membership units to Cinemark and Regal, AMC remains a party to the ESA, Common Unit Adjustment Agreement, TRA and certain other original agreements, and AMC will continue to participate in the annual Common Unit Adjustment, receive TRA payments, receive theater access fee payments, and make payments under the beverage concessionaire agreements, among other things. AMC is not currently a member under the terms of the NCM LLC Operating Agreement and will not receive available cash distributions or allocation of earnings and losses in NCM LLC, unless it receives NCM LLC membership units pursuant to a Common Unit Adjustment. Further, the sale does not impact future integration payments and other encumbered theater payments owed to NCM LLC by AMC. AMC is considered a related party through the divestiture date (July 5, 2018) and related party transactions with AMC through this period are included within the disclosures below. • ESAs. Under the ESAs, the Company is the exclusive provider within the United States of advertising services in the founding members’ theaters (subject to pre-existing contractual obligations and other limited exceptions for the benefit of the founding members). The advertising services include the use of the DCN equipment required to deliver the on-screen advertising and other content included in the Noovie pre-show, use of the LEN and rights to sell and display certain lobby promotions. Further, 30 to 60 seconds of advertising included in the Noovie pre-show is sold to the founding members to satisfy the founding members’ on-screen advertising commitments under their beverage concessionaire agreements. In consideration for access to the founding members’ theaters, theater patrons, the network equipment required to display on-screen and LEN video advertising and the use of theaters for lobby promotions, the founding members receive a monthly theater access fee. • Common Unit Adjustment Agreement. The common unit adjustment agreement provides a mechanism for increasing or decreasing the membership units held by the founding members based on the acquisition or construction of new theaters or sale of theaters that are operated by each founding member and included in the Company’s network. • Software License Agreement. At the date of NCM, Inc.’s IPO, the Company was granted a perpetual, royalty-free license from the founding members to use certain proprietary software that existed at the time for the delivery of digital advertising and other content through the DCN to screens in the U.S. The Company has made improvements to this software since the IPO date and NCM LLC owns those improvements, except for improvements that were developed jointly by the Company and its founding members, if any. Following is a summary of the related party transactions between the Company and the founding members (in millions): Years Ended Included in the Statements of Income: (1) December 27, 2018 December 28, 2017 December 29, 2016 Revenue: Beverage concessionaire revenue (included in advertising revenue) (2) $ 28.4 $ 29.9 $ 28.7 Advertising inventory revenue (included in advertising revenue) (3) — — 0.4 Operating expenses: Theater access fee (4) 69.0 76.5 75.1 Purchase of movie tickets and concession products and rental of theater space (included in selling and marketing costs) (5) 1.1 2.1 1.6 Purchase of movie tickets and concession products and rental of theater space (included in advertising operating costs) 0.1 0.1 — Purchase of movie tickets and concession products and rental of theater space (included in other administrative and other costs) — — 0.1 Administrative fee - managing member (6) 17.8 12.8 20.2 Non-operating expenses: Interest income from notes receivable (included in interest income) (7) 0.3 0.6 0.8 ______________________________________________________________________ (1) AMC is no longer considered a related party as of July 5, 2018, as described further above. As such, the figures within the table above only include related party activity with AMC for the first six months of 2018. (2) For the full years ended December 27, 2018, December 28, 2017 and December 29, 2016, two of the founding members purchased 60 seconds of on-screen advertising time and one founding member purchased 30 seconds (with all three founding members having a right to purchase up to 90 seconds) from the Company to satisfy their obligations under their beverage concessionaire agreements at a 30 second equivalent CPM rate specified by the ESA. (3) The value of such purchases is calculated by reference to the Company’s advertising rate card. (4) Comprised of payments per theater attendee, payments per digital screen with respect to the founding member theaters included in the Company’s network and payments for access to higher quality digital cinema equipment. (5) Used primarily for marketing to the Company’s advertising clients. (6) Pursuant to the Management Services Agreement between NCM, Inc. and NCM LLC, NCM, Inc. provides certain specific management services to NCM LLC. In 2018, these services included the services of the Chief Executive Officer, President, Chief Financial Officer, Chief Revenue Officer and Senior Vice President, General Counsel, and Secretary. In exchange for these services, NCM LLC reimburses NCM, Inc. for compensation paid to the officers (including share-based compensation) and other expenses of the officers and for certain out-of-pocket costs. (7) Refer to the discussion of the Fathom Events sale under AC JV, LLC transactions below. As of Included in the Balance Sheets: December 27, December 28, Current portion of note receivable (1)(2) $ 4.2 $ 4.2 Long-term portion of note receivable (2) — 4.1 Interest receivable on notes receivable (included in other current assets) (2) 0.1 — Prepaid administrative fees to managing member (3) 0.6 0.8 Common unit adjustments, net of amortization and integration payments (included in intangible assets) 657.6 687.1 ______________________________________________________________________ (1) AMC is no longer considered a related party as of July 5, 2018, as described further above. As such, the figures within the table above only include related party activity with AMC for the first six months of 2018. (2) Refer to the discussion of the Fathom Events sale under AC JV, LLC transactions below. (3) The payments for estimated management services related to employment are made one month in advance. NCM LLC also provides administrative and support services to NCM, Inc. such as office facilities, equipment, supplies, payroll and accounting and financial reporting at no charge. Based on the limited activities of NCM, Inc. as a standalone entity, the Company does not believe such unreimbursed costs are significant. At the date of NCM, Inc.’s IPO, NCM LLC was granted a perpetual, royalty-free license from the founding members to use certain proprietary software that existed at the time for the delivery of digital advertising and other content through the DCN to screens in the U.S. NCM LLC has made improvements to this software since NCM, Inc.’s IPO date and the Company owns those improvements, except for improvements that were developed jointly by NCM LLC and the founding members, if any. Pursuant to the terms of the NCM LLC Operating Agreement in place since the completion of NCM, Inc.’s IPO, the Company 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 years ended December 27, 2018 , December 28, 2017 and December 29, 2016 are as shown within the table below (in millions). The amount presented within the tables for the distribution paid to AMC for the year ended December 27, 2018 represents only the distribution for the three months ended March 29, 2018 to AMC. AMC’s distribution for the three months ended June 28, 2018 was paid to Cinemark and Regal to accommodate agreements between AMC and each of Cinemark and Regal. Further, there was no distribution to AMC for the three months ended September 27, 2018 and December 27, 2018 as they had no ownership in these periods. Years Ended December 27, 2018 December 28, 2017 December 29, 2016 AMC $ 2.2 $ 27.1 $ 23.6 Cinemark 34.3 29.1 25.4 Regal 35.8 28.8 26.1 Total founding members 72.3 85.0 75.1 NCM, Inc. 69.1 75.9 57.5 Total $ 141.4 $ 160.9 $ 132.6 The mandatory distributions of available cash by the Company to its founding members for the quarter ended December 27, 2018 of $27.9 million , is included in amounts due to founding members in the Balance Sheets as of December 27, 2018 and will be made in the first quarter of 2018. The mandatory distributions of available cash by NCM LLC to its managing member for the quarter ended December 27, 2018 of $26.6 million is included in amounts due to managing member on the audited Balance Sheets as of December 27, 2018 and will be made in the first quarter of 2019. Amounts due to founding members, net as of December 27, 2018 were comprised of the following (in millions): Cinemark Regal Total Theater access fees, net of beverage revenues and other encumbered theater payments $ 1.0 $ 1.5 $ 2.5 Distributions payable to founding members 13.7 14.2 27.9 Integration payments due from founding members (0.4 ) — (0.4 ) Total amounts due (from) to founding members, net $ 14.3 $ 15.7 $ 30.0 Amounts due to founding members, net as of December 28, 2017 were comprised of the following (in millions): AMC Cinemark Regal Total Theater access fees, net of beverage revenues and other encumbered theater payments $ 1.5 $ 1.0 $ 1.5 $ 4.0 Distributions payable to founding members 10.8 13.5 13.3 37.6 Integration payments due from founding members (8.5 ) (0.4 ) — (8.9 ) Total amounts due (from) to founding members, net $ 3.8 $ 14.1 $ 14.8 $ 32.7 Amounts due to/from managing member, net were comprised of the following (in millions): As of As of Distributions payable $ 26.6 $ 36.9 Cost and other reimbursement 1.1 1.4 Total $ 27.7 $ 38.3 Common Unit Membership Redemption and AMC Mandatory Ownership Divestitures — The NCM LLC Operating Agreement provides a redemption right of the founding members to exchange common membership units of NCM LLC for shares of NCM Inc.’s common stock on a one -for-one basis, or at NCM, Inc.’s option, a cash payment based on the three -day variable weighted average closing price of NCM, Inc.’s common stock prior to the redemption date. In December 2016, AMC agreed to a proposed final judgment in a lawsuit brought by the DOJ in connection with AMC's acquisition of Carmike. Pursuant to the final judgment, AMC was required to divest the majority of its equity interests in NCM LLC and NCM, Inc., based upon a predetermined schedule so that by June 20, 2019 it owned no more than 4.99% of NCM LLC’s common membership units and NCM, Inc. common stock, taken together, on a fully converted basis (“NCM’s outstanding equity interests”). During the year ended December 28, 2017, AMC exercised the redemption right of an aggregate 15.6 million common membership units for a like number of shares of NCM, Inc.’s common stock. Pursuant to ASC 810-10-45, the Company accounted for the change in its ownership interest in NCM LLC as an equity transaction whereby, the issuance of shares of NCM, Inc. common stock were offset by the purchase of NCM LLC’s (a subsidiary’s) equity within the Statement of Equity. Further, no gain or loss was recognized in the Statements of Income. During the years ended December 27, 2018 and December 28, 2017, AMC sold 1.0 million and 14.8 million shares of NCM, Inc., respectively. The Company did not receive any proceeds from the sale of its common stock by AMC. During the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , AMC received cash dividends of approximately $0.3 million , $0.1 million and $0.2 million , respectively, on its shares of NCM, Inc. common stock. AMC sold the remaining 21,477,480 NCM LLC membership units to Cinemark and Regal in July 2018. As of December 27, 2018, AMC did not own any of NCM's outstanding equity interests. AC JV, LLC Transactions — In December 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 receivable 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. Future minimum principal payments under the notes receivable as of December 27, 2018 are $5.6 million which is due in 2019. NCM LLC’s investment in AC JV, LLC was $0.9 million and $1.0 million as of December 27, 2018 and December 28, 2017 , respectively. 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. Although 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, the Company concluded that its interest was more than minor. During the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , NCM LLC received a cash distribution from AC JV, LLC of $0.2 million , $0.3 million and $0.2 million , respectively. NCM LLC recorded equity in earnings for AC JV, LLC of $0.2 million , $0.3 million and $0.0 million during the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively, which are included in other non-operating expense in the audited Statements of Income. In connection with the sale, 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. In addition, NCM LLC entered into a services agreement with a term coinciding with the ESAs, which grants the newly formed limited liability company advertising on-screen and on the LEN and a pre-feature program prior to Fathom events reasonably consistent with what was previously dedicated to Fathom. NCM LLC has also agreed to provide creative and media production services for a fee. NCM LLC received $0.2 million , $0.3 million and $0.2 million during the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively, for these services, which are included as an offset to network costs in the audited Statements of Income. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 27, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | . BORROWINGS The following table summarizes the Company’s total outstanding debt as of December 27, 2018 and December 28, 2017 and the significant terms of its borrowing arrangements: Outstanding Balance as of Borrowings ($ in millions) December 27, 2018 December 28, 2017 Maturity Date Interest Rate Senior secured notes due 2022 $ 400.0 $ 400.0 April 15, 2022 6.000% Revolving credit facility 27.0 12.0 June 20, 2023 (1) Term loans 269.4 270.0 June 20, 2025 (1) Senior unsecured notes due 2026 235.0 250.0 August 15, 2026 5.750% Total borrowings 931.4 932.0 Less: Debt issuance costs related to term loans and senior notes (7.8 ) (8.7 ) Total borrowings, net 923.6 923.3 Less current portion of debt (2.7 ) — Carrying value of long-term debt $ 920.9 $ 923.3 ______________________________________________________________________ (1) The interest rates on the revolving credit facility and term loan are described below. Senior Secured Credit Facility — On June 20, 2018, NCM LLC entered into a credit agreement to replace the Company's previous senior secured credit facility, dated as of February 13, 2007, as amended (the "previous facility"). Consistent with the structure of the previous facility, the new agreement consists of a term loan facility and a revolving credit facility. As of December 27, 2018 , the Company’s new senior secured credit facility consisted of a $175.0 million revolving credit facility and a $269.4 million term loan. The obligations under the senior secured credit facility are secured by a lien on substantially all of the assets of NCM LLC. During the second quarter of 2018, the Company capitalized approximately $6.5 million of debt issuance costs related to the new revolving credit facility and the term loan. The Company also recognized $1.2 million in non-operating loss related to the write-off of capitalized debt issuance costs related to the previous facility and recognition of debt issuance costs that did not qualify for capitalization. Revolving Credit Facility —The revolving credit facility portion of the total borrowings is available, subject to certain conditions, for general corporate purposes of the Company 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 December 27, 2018 , the Company’s total availability under the $175.0 million revolving credit facility was $143.2 million , net of $27.0 million outstanding and $4.8 million letters of credit. The unused line fee is 0.50% per annum which is consistent with the previous facility. Borrowings under the revolving credit facility bear interest at the Company’s option of either the LIBOR index plus an applicable margin ranging from 1.75% to 2.25% or the base rate plus an applicable margin ranging from 0.75% to 1.25% . The margin changed to the aforementioned range from a fixed margin of LIBOR index plus 2.00% or the base rate plus 1.00% . 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 of up to $100.0 million , divided by Adjusted OIBDA). The revolving credit facility will mature on June 20, 2023 contingent upon the refinancing of our Notes due 2022 (defined below, see "Senior Secured Notes due 2022") on or prior to October 30, 2021. If the Notes due 2022 are not refinanced on or prior to October 30, 2021, then the revolving credit facility will instead mature on December 30, 2021. The weighted-average interest rate on the outstanding balance on the revolving credit facility as of December 27, 2018 was 4.9% . Term Loans —The interest rate on the term loans is a rate chosen at NCM LLC’s option of either the LIBOR index plus 3.00% or the base rate plus 2.00% . The rate increased from LIBOR index plus 2.75% or the base rate plus 1.75% . The weighted-average interest rate on the term loans as of December 27, 2018 was 5.5% . The term loan amortizes at a rate equal to 1.00% annually, to be paid in equal quarterly installments. As of December 27, 2018, the Company has paid a principal of $0.6 million , reducing the outstanding balance to $269.4 million . The term loan will mature on June 20, 2025 contingent upon the refinancing of the Notes due 2022 on or prior to October 30, 2021. If the Notes due 2022 are not financed on or prior to October 30, 2021, then the term loan will instead mature on December 30, 2021. The senior secured credit facility contains a number of covenants and financial ratio requirements, including (i) a consolidated net total leverage ratio covenant of 6.25 times for each for each quarterly period and (ii) with respect to the revolving credit facility, maintaining a consolidated net senior secured leverage ratio of equal to or less than 4.50 times on a quarterly basis for each quarterly period in which a balance is outstanding on the revolving credit facility. In addition, the Company is permitted to make quarterly dividend payments and other restricted payments with its available cash as long as our consolidated net senior secured leverage ratio (after giving effect to any such payment) is below 5.50 times and no default or event of has occurred and continues to occur under the senior secured credit facility. As of December 27, 2018, our consolidated net senior secured leverage ratio was 3.10 times (versus the dividend payment restriction of 5.50 times and the covenant of 4.50 times) and our consolidated net total leverage ratio was 4.20 times (versus the covenant of 6.25 times). Senior Secured Notes due 2022 —On April 27, 2012, the Company completed a private placement of $400.0 million in aggregate principal amount of 6.00% Senior Secured Notes (the “Notes due 2022”). The Notes due 2022 pay interest semi-annually in arrears on April 15 and October 15 of each year, which commenced October 15, 2012 . The Notes due 2022 were issued at 100% of the face amount thereof and are senior secured obligations of NCM LLC, rank the same as the Company’s senior secured credit facility, subject to certain exceptions, and share in the same collateral that secures the Company’s obligations under the senior secured credit facility. The Company may redeem all or any portion of the Notes due 2022, at once or over time, on or after April 15, 2017 at specified redemption prices, plus accrued and unpaid interest, if any, to the redemption date. Upon the occurrence of a Change of Control (as defined in the Indenture), the Company will be required to make an offer to each holder of Notes due 2022 to repurchase all of such holder’s Notes due 2022 for a cash payment equal to 101.00% of the aggregate principal amount of the Notes due 2022 repurchased, plus accrued and unpaid interest, if any, to the date of repurchase. The indenture contains covenants that, among other things, restrict the Company’s ability and the ability of its restricted subsidiaries, if any, to: (1) incur additional debt; (2) make distributions or make certain other restricted payments; (3) make investments; (4) incur liens; (5) sell assets or merge with or into other companies; and (6) enter into transactions with affiliates. All of these restrictive covenants are subject to a number of important exceptions and qualifications. In particular, The Company has the ability to distribute all of its quarterly available cash as a restricted payment or as an investment, if it meets a minimum net senior secured leverage ratio. The Company was in compliance with these non-maintenance covenants as of December 27, 2018 . Senior Unsecured Notes due 2026 —On August 19, 2016, the Company completed a private placement of $250.0 million in aggregate principal amount of 5.750% Senior Unsecured Notes due 2026 (the “Notes due 2026”) for which the registered exchange offering was completed on November 8, 2016. The Notes due 2026 pay interest semi-annually in arrears on February 15 and August 15 of each year, which commenced on February 15, 2017 . The Notes due 2026 were issued at 100% of the face amount thereof and are the senior unsecured obligations of the Company and will be effectively subordinated to all existing and future secured debt, including the Notes due 2022, its senior secured credit facility and any future asset backed loan facility. The Notes due 2026 will rank equally in right of payment with all of the Company’s existing and future senior indebtedness, including the Notes due 2022, the Company’s existing senior secured credit facility, any future asset backed loan facility, in each case, without giving effect to collateral arrangements. The Notes due 2026 will be effectively subordinated to all liabilities of any subsidiaries that the Company may form or acquire in the future, unless those subsidiaries become guarantors of the Notes due 2026. The Company does not currently have any subsidiaries, and the Notes due 2026 will not be guaranteed by any subsidiaries that the Company may form or acquire in the future except in very limited circumstances. During 2018, NCM LLC repurchased and canceled a total of $15.0 million of the Notes due 2026, reducing the principal amount to $235.0 million as of December 27, 2018. This repurchase was treated as a partial debt extinguishment and resulted in the realization of a non-operating gain, net of written off debt issuance costs, of $0.6 million during the year ended December 27, 2018. The Company may redeem all or any portion of the Notes due 2026 prior to August 15, 2021, at once or over time, at 100% of the principal amount plus the applicable make-whole premium, plus accrued and unpaid interest, if any, to the redemption date. The Company may redeem all or any portion of the Notes due 2026, at once or over time, on or after August 15, 2021 at specified redemption prices, plus accrued and unpaid interest, if any, to the redemption date. In addition, at any time prior to August 15, 2019, the Company may on any one or more occasions redeem up to 35% of the original aggregate principal amount of Notes due 2026 from the net proceeds of certain equity offerings at a redemption price equal to 105.750% of the principal amount of the Notes due 2026 redeemed, plus accrued and unpaid interest, if any, to the redemption date. Upon the occurrence of a Change of Control (as defined in the indenture), the Company will be required to make an offer to each holder of the Notes due 2026 to repurchase all of such holder’s Notes due 2026 for a cash payment equal to 101.00% of the aggregate principal amount of the Notes due 2026 repurchased, plus accrued and unpaid interest, if any, to the date of repurchase. The indenture contains covenants that, among other things, restrict the Company’s ability and the ability of its restricted subsidiaries, if any, to: (1) incur additional debt; (2) make distributions or make certain other restricted payments; (3) make investments; (4) incur liens; (5) sell assets or merge with or into other companies; and (6) enter into transactions with affiliates. All of these restrictive covenants are subject to a number of important exceptions and qualifications. In particular, the Company has the ability to distribute all of its quarterly available cash as a restricted payment or as an investment, if it meets a minimum net senior secured leverage ratio. The Company was in compliance with these non-maintenance covenants as of December 27, 2018 . Future Maturities of Borrowings —The scheduled annual maturities on the Senior Secured Credit Facility, Notes due 2022 and Notes due 2026 as of December 27, 2018 are as follows (in millions): Year Amount 2019 $ 2.7 2020 2.7 2021 2.7 2022 402.7 2023 29.7 Thereafter 490.9 Total $ 931.4 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 27, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION The NCM, Inc. 2016 Equity Incentive Plan (the “2016 Plan”) reserves 4,400,000 shares of common stock available for issuance or delivery under the 2016 Plan, of which 2,812,787 shares remain available for future grants as of December 27, 2018 (assuming 100% achievement of targets on performance-based restricted stock). NCM, Inc. began issuing shares under the 2016 Plan in the second quarter of 2016, following its approval by NCM, Inc.’s stockholders. The 2016 Plan replaced NCM, Inc.’s 2007 Equity Incentive Plan (the “2007 Plan”), which was set to expire by its terms in February 2017. The shares of common stock that were available for issuance under the 2007 Plan are no longer available for issuance following the approval of the 2016 Plan. Any forfeitures of shares granted pursuant to the 2007 Plan will be cancelled and not available for future grant. The management services agreement provides that the Company may participate in NCM, Inc.’s Equity Incentive Plans. The types of awards that may be granted under the 2016 Plan include stock options, stock appreciation rights, restricted stock, restricted stock units or other stock based awards. Certain option and share awards provide for accelerated vesting if there is a change in control, as defined in the 2007 Plan and the 2016 Plan. Upon vesting of the restricted stock awards or exercise of options, NCM LLC will issue common membership units to NCM, Inc. equal to the number of shares of NCM, Inc.’s common stock represented by such awards. Compensation Cost — The Company recognized $7.8 million , $11.2 million and $18.3 million for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively, of share-based compensation expense within network costs, selling and marketing costs, administrative and other costs and administrative – managing member in the Statements of Income as shown in the table below. Years Ended December 27, 2018 December 28, 2017 December 29, 2016 Share-based compensation costs included in network costs $ 0.6 $ 1.0 $ 1.1 Share-based compensation costs included in selling and marketing costs 2.5 4.1 6.0 Share-based compensation costs included in administrative and other costs 1.3 2.1 3.8 Share-based compensation costs included in administrative fee - managing member (1) 3.4 4.0 7.4 Total share-based compensation costs $ 7.8 $ 11.2 $ 18.3 ______________________________________________________________________ (1) Includes $0.0 million , $0.0 million , and $2.3 million of expense associated with the modification of certain former executive equity awards during the years ended December 27, 2018 , December 28, 2017 , and December 29, 2016, respectively, as described further below. Share-based compensation costs recorded in network costs, selling and marketing costs and administrative and other costs are non-cash charges. Share-based compensation costs recorded in the administrative fee – managing member are cash charges. During the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , $0.2 million , $0.3 million and $0.5 million was capitalized, respectively, in a corresponding manner to the capitalization of employee’s salaries for capitalized labor. As of December 27, 2018 , there was no unrecognized compensation cost related to unvested options as stock options were fully vested as of December 27, 2018 . As of December 27, 2018 , unrecognized compensation cost related to restricted stock and restricted stock units was approximately $5.2 million , which will be recognized over a weighted average remaining period of 1.6 years . Stock Options — The Company has not granted stock options since 2012 and as of December 27, 2018 all options are fully vested. Stock options awarded under the 2007 Plan were granted with an exercise price equal to the closing market price of NCM, Inc. common stock on the date NCM, Inc.’s Board of Directors approved the grant. Options have either 10 -year or 15 -year contractual terms. The intrinsic value of options exercised during the year was $0.0 million , $0.1 million and $0.1 million for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively. A summary of option award activity under the 2007 Plan as of December 27, 2018 , and changes during the year then ended are presented below: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in millions) Outstanding as of December 28, 2017 2,165,181 $ 16.47 — $ — Forfeited (123,953 ) $ 16.94 Expired (90,478 ) $ 16.14 Outstanding as of December 27, 2018 1,950,750 $ 16.45 2.0 $ — Exercisable as of December 27, 2018 1,950,750 $ 16.45 2.0 $ — Vested and expected to vest as of December 27, 2018 1,950,750 $ 16.45 2.0 $ — Restricted Stock and Restricted Stock Units — Under the non-vested stock program, common stock of NCM, Inc. may be granted at no cost to officers, independent directors and employees, subject to requisite service and/or financial performance targets. As such restrictions lapse, the award vests in that proportion. The participants are entitled to dividend equivalents and to vote their respective shares (in the case of restricted stock), although the sale and transfer of such shares is prohibited and the shares are subject to forfeiture during the restricted period. Additionally, the accrued dividend equivalents are subject to forfeiture during the restricted period should the underlying shares not vest. The Company has issued time-based restricted stock to its employees which vests over a three -year period with one-third vesting on each anniversary of the date of grant and performance-based restricted stock which vests following a three -year measurement period to the extent that the Company achieves specified non-GAAP targets at the end of the measurement period. The Company also grants restricted stock units to NCM, Inc.’s non-employee directors that vest after approximately one year . The grant date fair value of restricted stock and restricted stock units is based on the closing market price of NCM, Inc. common stock on the date of grant. An annual forfeiture rate of 2 - 6% was estimated to reflect the potential separation of employees. The weighted average grant date fair value of non-vested stock was $6.65 , $14.34 and $15.03 for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively. The total fair value of awards vested was $15.5 million , $17.3 million and $14.7 million during the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively. A summary of restricted stock award and restricted stock unit activity as of December 27, 2018 , and changes during the year then ended are presented below: Number of Restricted Shares and Restricted Stock Units Weighted Average Grant- Date Fair Value Non-vested balance as of December 28, 2017 2,308,962 $ 14.70 Granted 1,019,173 $ 6.65 Vested (1) (1,067,615 ) $ 14.55 Forfeited (434,537 ) $ 10.24 Non-vested balance as of December 27, 2018 1,825,983 $ 11.31 ______________________________________________________________________ (1) Includes 333,439 vested shares that were withheld to cover tax obligations and were subsequently canceled. The above table reflects performance-based restricted stock granted at 100% achievement of performance conditions and as such does not reflect the maximum or minimum number of shares of performance-based restricted stock contingently issuable. An additional 535,629 shares of restricted stock could be issued if the performance criteria maximums are met. As of December 27, 2018 , the total number of restricted stock and restricted stock units that are ultimately expected to vest, after consideration of expected forfeitures and current projections of estimated vesting of performance-based restricted stock is 1,259,308 shares. Executive Equity Modification —On January 1, 2016, the Company’s former Chief Executive Officer resigned and in connection with his resignation, NCM, Inc. entered into a Separation and General Release Agreement and a Consulting Agreement, whereby, the executive will continue to perform consulting services through January 31, 2018 and certain modifications were made to the executive’s outstanding stock awards. The executive’s outstanding stock options were modified such that the timeframe to exercise the options was extended to the original expiration date and certain performance-based restricted stock awards were converted to time-based restricted stock, with all restricted stock continuing to vest during the consulting period. Per ASC Topic 718-10-35-3, a modification of the terms or conditions of an equity award shall be treated as an exchange of the original award for a new award. The effects of a modification should be measured as follows: (a) incremental compensation cost shall be measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, (b) total recognized compensation cost for an equity shall at least equal the fair value of the award at the grant date unless at the date of the modification the performance or service conditions of the original award are not expected to be satisfied and (c) a change in compensation cost for an equity award measured at intrinsic value shall be measured by comparing the intrinsic value of the modified award, if any, with the intrinsic value of the original award, if any, immediately before the modification. These modifications resulted in compensation expense of $2.3 million recorded in administrative fee – managing member during the year ended December 29, 2016. Further, the Company continued to recognize share-based compensation costs on the awards related to service during the consulting period and re-measured the fair value of the outstanding awards at each reporting period during the term of the consulting services, in accordance with ASC Topic 505-50, Equity-Based Payments to Non-Employees . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 27, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | . EMPLOYEE BENEFIT PLANS The Company sponsors the NCM 401(k) Profit Sharing Plan (the “Plan”) under Section 401(k) of the Internal Revenue Code of 1986, as amended, for the benefit of substantially all full-time employees. The Plan provides that participants may contribute up to 20% of their compensation, subject to Internal Revenue Service limitations. Employee contributions are invested in various investment funds based upon election made by the employee. The Company made discretionary contributions of $1.2 million , $1.2 million and $1.3 million during the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 27, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. 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, individually and in aggregate, on its financial position, results of operations or cash flows. Operating Commitments — The Company leases office facilities for its headquarters in Centennial, Colorado and also in various cities for its sales and marketing and software development personnel. Total lease expense for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , was $3.8 million , $2.2 million and $2.3 million , respectively. During the year ended December 28, 2017 , the Company recorded a $1.8 million of expense for an early lease termination fee. The fee was reimbursed by the landlord of the Company’s new building, which is being treated as a lease incentive and amortized over the term of the new lease. Future minimum lease payments under noncancelable operating leases as of December 27, 2018 are as follows (in millions): Year Minimum Lease Payments 2019 $ 3.5 2020 3.3 2021 3.4 2022 3.4 2023 3.4 Thereafter 22.1 Total $ 39.1 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 theater 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. As of December 27, 2018 , the maximum potential amount of future payments the Company could be required to make pursuant to the minimum revenue guarantees is $70.8 million over the remaining terms of the network affiliate agreements. These minimum guarantees relate to various affiliate agreements ranging in term from one to twenty years , prior to any renewal periods of which some are at the option of the Company. During the year ended December 27, 2018 and December 28, 2017 , the Company paid $0.7 million and $0.1 million , respectively, related to these minimum guarantees. As of December 27, 2018 and December 28, 2017 , the Company had $0.1 million and $0.0 million in liabilities recorded for these obligations, as such guarantees are less than the expected share of revenue paid to the affiliate. Theater Access Fee Guarantees —In consideration for the Company’s access to the founding members’ theater attendees for on-screen advertising and use of lobbies and other space within the founding members’ theaters for the LEN and lobby promotions, the founding members receive a monthly theater access fee under the ESAs. The theater access fee is composed of a fixed payment per patron, a fixed payment per digital screen (connected to the DCN) and a fee for access to higher quality digital cinema equipment. The payment per theater patron increases by 8% every five years , with the next increase taking effect in fiscal year 2022. The payment per digital screen and for digital cinema equipment increases annually by 5% . The theater access fee paid in the aggregate to all founding members cannot be less than 12% of NCM LLC’s aggregate advertising revenue (as defined in the ESA), or it will be adjusted upward to reach this minimum payment. As of December 27, 2018 and December 28, 2017 , the Company had no liabilities recorded for the minimum payment, as the theater access fee was in excess of the minimum. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 27, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. FAIR VALUE MEASUREMENTS 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 —As described in Note 1—Basis of Presentation and Summary of Significant Accounting Policies , 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. Other investments consisted of the following (in millions): As of December 27, December 28, Investment in AC JV, LLC (1) $ 0.9 $ 1.0 Other investments (2) 2.1 2.5 Total $ 3.0 $ 3.5 ______________________________________________________________________ (1) Refer to Note 7—Related Party Transactions. (2) The Company received equity securities in privately held companies as consideration for a portion of advertising contracts. The equity securities were accounted for under the cost method and represent an ownership of less than 20% . The Company does not exert significant influence on these companies’ operating or financial activities. During the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , the Company recorded impairment charges of $0.4 million , $3.1 million and $0.7 million , respectively, on certain of its investments due to a significant deterioration in the business prospects of the investee or new information regarding the fair value of the investee, which brought the total remaining value of the respective impaired investments to $0.0 million as of December 27, 2018 and $0.1 million as of December 28, 2017. As of December 27, 2018, no other observable price changes or impairments have been recorded as a result of the Company’s qualitative assessment of identified events or changes in the circumstances of the remaining investments. The investment in AC JV was initially valued using comparative market multiples. The other investments were recorded based upon the fair value of the services provided in exchange for the investment. Refer to Note 1- Basis of Presentation and Summary of Significant Accounting Policies for more details. As the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, they have been classified as Level 3 in the fair value hierarchy. As of December 27, 2018 and December 28, 2017 , the Company had notes receivable totaling $5.6 million and $8.3 million , respectively, from its founding members related to the sale of Fathom Events, as described in Note 7—Related Party Transactions . These notes were initially valued using comparative market multiples. There were no identified events or changes in circumstances that had a significant adverse effect on the fair value of the notes receivable. The notes 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. 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 December 27, As of December 28, Carrying Value Fair Value (1) Carrying Value Fair Value (1) Term loans $ 269.4 $ 261.2 $ 270.0 $ 270.8 Senior Notes due 2022 400.0 401.8 400.0 407.3 Senior Notes due 2026 235.0 211.0 250.0 235.0 ______________________________________________________________________ (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. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 27, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | 13. VALUATION AND QUALIFYING ACCOUNTS The Company’s allowance for doubtful accounts for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 was as follows (in millions): Years Ended December 27, 2018 December 28, 2017 December 29, 2016 ALLOWANCE FOR DOUBTFUL ACCOUNTS: Balance at beginning of period $ 6.0 $ 6.3 $ 5.6 Provision for bad debt 1.6 1.1 2.1 Write-offs, net (1.6 ) (1.4 ) (1.4 ) Balance at end of period $ 6.0 $ 6.0 $ 6.3 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 27, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 14. QUARTERLY FINANCIAL DATA (UNAUDITED) The following represents selected information from the Company’s unaudited quarterly Statements of Income for the years ended December 27, 2018 and December 28, 2017 (in millions): 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 80.2 $ 113.7 $ 110.1 $ 137.4 Operating expenses 69.2 73.5 67.8 76.6 Operating income 11.0 40.2 42.3 60.8 Net (loss) income (3.0 ) 25.0 28.5 47.9 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 71.9 $ 97.1 $ 116.4 $ 140.7 Operating expenses 66.8 68.8 66.1 70.5 Operating (loss) income 5.1 28.3 50.3 70.2 Net (loss) income (7.9 ) 15.4 37.3 57.1 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 27, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has prepared its Financial Statements and related notes of NCM LLC in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain reclassifications have been made to the prior years’ financial statements to conform to the current presentation (refer to the Balance Sheet, whereby the Company presented prepaid expenses and other assets as one line item). As a result of the various related-party agreements discussed in Note 7— 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. Advertising is the principal business activity of the Company and is the Company’s only reportable segment under the requirements of ASC 280 – Segment Reporting. |
Estimates | Estimates —The preparation of the 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 and share-based compensation. Actual results could differ from those estimates. |
Accounting Period | Accounting Period — The Company has a 52-week or 53-week fiscal year ending on the first Thursday after December 25. Fiscal years 2016, 2017 and 2018 contained 52 weeks. Throughout this document, the fiscal years are referred to as set forth below: Fiscal Year Ended Reference in this Document December 27, 2018 2018 December 28, 2017 2017 December 29, 2016 2016 |
Revenue Recognition | Revenue Recognition —The Company derives revenue principally from the advertising business, which includes on-screen and LEN advertising and lobby promotions and advertising on websites and mobile applications owned by the Company and other companies. Revenue is recognized over time as the customer receives the benefits provided by our advertising services and we have the right to payment for the performance to date. The Company considers the terms of each arrangement to determine the appropriate accounting treatment as more fully discussed in Note 2— Revenue from Contracts with Customers . |
Operating Costs | Operating Costs —Advertising-related operating costs primarily include personnel and other costs related to advertising fulfillment, payments due to unaffiliated theater circuits under the network affiliate agreements, and to a lesser extent, production costs of non-digital advertising. Payments to the founding members of a theater access fee is comprised of a payment per theater attendee, a payment per digital screen and a payment per digital cinema projector equipped in the theaters, all of which escalate over time. Refer to Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations ” included elsewhere in this document. Network costs include personnel, satellite bandwidth, repairs, and other costs of maintaining and operating the digital network and preparing advertising and other content for transmission across the digital network. |
Cash, Cash Equivalents, and Restricted Cash | Cash and Cash Equivalents —All highly liquid debt instruments and investments purchased with an original maturity of three months or less are classified as cash equivalents and are considered available-for-sale securities. There are cash balances in a bank in excess of the federally insured limits or in the form of a money market demand account with a major financial institution. |
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 national and regional advertising is reduced by transacting with founding members or large, national advertising agencies who have strong reputations in the advertising industry and clients with stable financial positions. The Company has smaller contracts with thousands of local clients that are not individually significant. As of December 27, 2018 and December 28, 2017 , 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 years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , there were no customers that accounted for more than 10% of revenue. |
Long-Lived Assets | Long-lived Assets —Property and equipment is stated at cost, net of accumulated depreciation or amortization. Generally, the equipment associated with the digital network of the founding member theaters is owned by the founding members, while the equipment associated with network affiliate theaters is owned by the Company. Major renewals and improvements are capitalized, while replacements, maintenance, and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. The Company records depreciation and amortization using the straight-line method over the following estimated useful lives: Equipment 4-10 years Computer hardware and software 3-5 years Leasehold improvements Lesser of lease term or asset life Software and website development costs developed or obtained for internal use are accounted for in accordance with ASC 350— Internal Use Software and ASC 350 – We bsite Development Costs . The subtopics require the capitalization of certain costs incurred in developing or obtaining software for internal use. Software costs related primarily to the Company’s inventory management systems, digital products, digital network distribution system (DCS) and website development costs, which are included in equipment, and are depreciated over three to five years. As of December 27, 2018 and December 28, 2017 , the Company had a net book value of $17.4 million and $16.5 million , respectively, of capitalized software and website development costs. Depreciation expense related to software and website development was approximately $6.7 million , $6.0 million and $3.9 million for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively. For the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , the Company recorded $1.7 million , $3.6 million and $3.4 million in research and development expense, respectively. The Company assesses impairment of long-lived assets pursuant with ASC 360 – Property, Plant and Equipment. This includes determining if certain triggering events have occurred that could affect the value of an asset. The Company recorded losses of $0.5 million , $0.1 million and $0.2 million related to the write-off of property, plant and equipment during the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively. |
Intangible Assets | Intangible assets —Intangible assets consist of contractual rights to provide its services within the theaters of the founding members and network affiliates and are stated at cost, net of accumulated amortization. The Company records amortization using the straight-line method over the contractual life of the intangibles, corresponding to the term of the ESAs or the term of the contract with the network affiliate. Intangible assets are tested for impairment at least annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. In its impairment testing, the Company estimates the fair value of its ESAs or network affiliate agreements by determining the estimated future cash flows associated with the ESAs or network affiliate agreements. If the estimated fair value is less than the carrying value, the intangible asset is written down to its estimated fair value. Significant judgment is involved in estimating long-term cash flow forecasts. The Company has not recorded impairment charges related to intangible assets. |
Amounts Due to/from Founding Members | Amounts Due to/from Founding Members —Amounts due to/from founding members include amounts due for the theater access fee, offset by a receivable for advertising time purchased by the founding members on behalf of their beverage concessionaire, plus any amounts outstanding under other contractually obligated payments. Payments to or received from the founding members against outstanding balances are made monthly. Available cash distributions are made quarterly. |
Amounts Due to Managing Member | Amounts Due to Managing Member —Amounts due to the managing member include amounts due under the NCM LLC operating agreement and other contractually obligated payments. Payments to or received from the managing member against outstanding balances are made monthly. |
Income Taxes | Income Taxes —NCM LLC is not a taxable entity for federal income tax purposes. Accordingly, NCM LLC does not directly pay federal income tax. NCM LLC’s taxable income or loss, which may vary substantially from the net income or loss reported in the Statements of Income, is includable in the federal income tax returns of each founding member and the managing member. NCM LLC is, however, a taxable entity under certain state jurisdictions. Further, in some state instances, NCM LLC may be required to remit composite withholding tax based on its results on behalf of its founding members and managing member. |
Debt Issuance Costs | Debt Issuance Costs —In relation to the issuance of outstanding debt discussed in Note 8— Borrowings , there is a balance of $12.8 million and $10.0 million in deferred financing costs as of December 27, 2018 and December 28, 2017 , respectively. The debt issuance costs are being amortized on a straight-line basis over the terms of the underlying obligations and are included in interest on borrowings, which approximates the effective interest method. Debt issuance costs are written-off in the event that the underlying debt is extinguished through partial or full repayment of the obligation. |
Share-Based Compensation | Share-Based Compensation —Through 2012, NCM, Inc. issued stock options, restricted stock and restricted stock units. Since 2013, NCM, Inc. has only issued restricted stock and restricted stock units. Restricted stock and restricted stock units vest upon the achievement of NCM, Inc. three -year cumulative performance measures and service conditions or only service conditions. Compensation expense of restricted stock that vests upon the achievement of NCM, Inc. 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, NCM, Inc. 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. Under the fair value recognition provisions of ASC 718 Compensation – Stock Compensation , the Company recognizes share-based compensation net of an estimated forfeiture rate, and therefore only recognizes compensation cost for those shares expected to vest over the requisite service period of the award. Refer to Note 9— Share-Based Compensation for more information. |
Fair Value Measurements | 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update 2016-2, Leases (Topic 842) (“ASU 2016-2”). ASU 2016-2 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Under the original standard, a modified retrospective transition approach was required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In July 2018, the FASB issued Accounting Standards Update 2018-11 which allows companies to elect the “Comparatives Under 840” option where only the current period financial statements and related disclosures are presented in accordance with the new standard. The Company is still evaluating which transition approach to apply upon adoption. The Company expects to utilize the following practical expedients: (i) not being required to separate lease and nonlease components when accounting for the lease; and (ii) not accounting for short-term leases under the new standard. The Company is still evaluating the impact of the adoption of ASU 2016-2 on the ESA and affiliate agreements, and thus, whether it will have a material impact on the audited Consolidated Financial Statements. The Company will adopt the standard and its provisions effective December 28, 2018 and will incorporate additional disclosures in its notes to its audited Financial Statements to comply with ASU 2016-2 effective in the first quarter of 2019. The Company has designed and will implement changes to certain processes and internal controls upon the adoption of ASU 2016-2. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements (“ASU 2016-13”), which requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted and is to be adopted on a modified retrospective basis. The Company is currently evaluating the impact that adopting this guidance will have on the audited Financial Statements or notes thereto. In June 2018, the FASB issued Accounting Standards Update 2018-7, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-7”), which amends Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-7 is effective for fiscal years beginning December 15, 2018, with early adoption permitted. The Company does not expect the adoption of ASU 2018-07 to have a material impact on the audited Financial Statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with partial early adoption permitted for eliminated disclosures. The method of adoption varies by the disclosure. The Company is currently evaluating the impact that adopting this guidance will have on the audited 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 audited Financial Statements or notes thereto. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Fiscal Year Ends | Throughout this document, the fiscal years are referred to as set forth below: Fiscal Year Ended Reference in this Document December 27, 2018 2018 December 28, 2017 2017 December 29, 2016 2016 |
Schedule of Receivables | Receivables consisted of the following (in millions): As of December 27, 2018 December 28, 2017 Trade accounts $ 154.0 $ 166.4 Other 1.9 0.2 Less: Allowance for doubtful accounts (6.0 ) (6.0 ) Total $ 149.9 $ 160.6 |
Schedule of Useful Lives | The Company records depreciation and amortization using the straight-line method over the following estimated useful lives: Equipment 4-10 years Computer hardware and software 3-5 years Leasehold improvements Lesser of lease term or asset life |
Changes in Debt Issuance Costs | The changes in debt issuance costs are as follows (in millions): Years Ended December 27, 2018 December 28, 2017 December 29, 2016 Beginning balance $ 10.0 $ 12.6 $ 12.9 Debt issuance payments 6.4 — 4.8 Amortization of debt issuance costs (2.6 ) (2.6 ) (2.6 ) Write-off of debt issuance costs (1.0 ) — (2.5 ) Ending balance $ 12.8 $ 10.0 $ 12.6 |
Revenue From Contracts with C_2
Revenue From Contracts with Customers Revenue From Contracts with Customers (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue from contracts with customers for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 : Years ended December 27, 2018 December 28, 2017 December 29, 2016 National advertising revenue $ 312.0 $ 296.3 $ 311.9 Local and regional advertising revenue 98.0 99.9 107.0 Founding member advertising revenue from beverage concessionaire agreements 31.4 29.9 28.7 Total revenue $ 441.4 $ 426.1 $ 447.6 |
Deferred Revenue and Unbilled Accounts Receivable | Deferred Revenue and Unbilled Accounts Receivable The changes in deferred revenue for the year ended December 27, 2018 were as follows (in millions): Year ended December 27, 2018 Balance at beginning of period $ (7.1 ) Performance obligations satisfied 7.1 New contract liabilities (7.3 ) Balance at end of period $ (7.3 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | The following is a summary of property and equipment, at cost less accumulated depreciation (in millions): As of December 27, December 28, Equipment, computer hardware and software $ 90.8 $ 92.9 Leasehold improvements 2.4 4.0 Less: Accumulated depreciation (62.5 ) (70.4 ) Subtotal 30.7 26.5 Construction in progress 2.9 4.2 Total property and equipment $ 33.6 $ 30.7 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Asset's | The following is a summary of the Company’s intangible asset’s activity (in millions) during 2018 and 2017 : As of Additions (1) Amortization Integration and other encumbered theater payments (3) As of Gross carrying amount $ 862.6 $ 16.0 $ — $ (21.4 ) $ 857.2 Accumulated amortization (145.4 ) — (27.3 ) — (172.7 ) Total intangible assets, net $ 717.2 $ 16.0 $ (27.3 ) $ (21.4 ) $ 684.5 As of Additions (2) Amortization Integration and other encumbered theater payments (3) As of Gross carrying amount $ 679.4 $ 204.1 $ — $ (20.9 ) $ 862.6 Accumulated amortization (118.9 ) — (26.5 ) — (145.4 ) Total intangible assets, net $ 560.5 $ 204.1 $ (26.5 ) $ (20.9 ) $ 717.2 ______________________________________________________________________ (1) During the first quarter of 2018, the Company issued 2,821,710 ( 3,736,860 issued, net of 915,150 returned) common membership units to its founding members for the rights to exclusive access to the theater screens and attendees added, net of dispositions by the founding members to our network during the 2017 fiscal year and the Company recorded a net intangible asset of $15.9 million during the first quarter of 2018 as a result of the Common Unit Adjustment. During 2018, the Company purchased intangible assets for $0.1 million associated with network affiliate agreements. (2) During the first quarter of 2017, the Company issued 2,351,029 common membership units to its founding members for the rights to exclusive access to net new theater screens and attendees added by the founding members to NCM LLC’s network during 2016. During the first quarter of 2017, the Company issued 18,425,423 common membership units to AMC in respect of the annual attendance at the acquired Carmike theaters in accordance with the Common Unit Adjustment Agreement. AMC’s acquisition of Carmike meets the criteria for a Common Unit Adjustment because it resulted in an extraordinary attendance increase of approximately 9.5% . Further, the Final Judgment required AMC to transfer advertising rights to 17 theaters from NCM LLC to another advertising provider. AMC surrendered 4,657,673 NCM LLC common membership units in respect of such theaters. The 4,657,673 NCM LLC common membership units were comprised of (i) 2,850,453 NCM LLC common membership units pursuant to the adjustment for divested theaters in the Common Unit Adjustment Agreement and (ii) an additional 1,807,220 NCM LLC common membership units valued at $25.0 million to compensate for NCM LLC’s lost operating income for these theaters during the 10 -year term of the Final Judgment. NCM LLC recorded a net intangible asset of $201.8 million in the first quarter of 2017 as a result of these Common Unit Adjustments. During 2017, the Company purchased intangible assets for $2.1 million associated with network affiliate agreements. During 2017, the Company purchased intangible assets for $0.2 million associated with acquired software. (3) Carmike and Rave Cinemas had pre-existing advertising agreements for some of the theaters it owned prior to their acquisitions by AMC and Cinemark. As a result, AMC and Cinemark will make integration and other encumbered theater payments over the remaining term of those agreements. During the year ended December 27, 2018 and December 28, 2017, the Company recorded a reduction to net intangible assets of $21.4 million and $20.9 million, respectively, related to integration and other encumbered theater payments due from AMC and Cinemark. During the year ended December 27, 2018 and December 28, 2017, AMC and Cinemark paid a total of $22.7 million and $12.9 million, respectively, related to integration and other encumbered theater payments. |
Summary of Estimated Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the five succeeding years is as follows (in millions): Year Amortization 2018 $ 27.3 2019 27.1 2020 27.1 2021 26.8 2022 26.4 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | The following is a summary of the Company’s accrued expenses (in millions): As of December 27, December 28, Make-good reserve $ 8.0 $ 5.5 Accrued interest 10.3 11.6 Deferred rent 0.2 0.8 Other accrued expenses 2.8 1.6 Total accrued expenses $ 21.3 $ 19.5 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Schedule of Mandatory Distributions to Members | Mandatory distributions for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 are as shown within the table below (in millions). The amount presented within the tables for the distribution paid to AMC for the year ended December 27, 2018 represents only the distribution for the three months ended March 29, 2018 to AMC. AMC’s distribution for the three months ended June 28, 2018 was paid to Cinemark and Regal to accommodate agreements between AMC and each of Cinemark and Regal. Further, there was no distribution to AMC for the three months ended September 27, 2018 and December 27, 2018 as they had no ownership in these periods. Years Ended December 27, 2018 December 28, 2017 December 29, 2016 AMC $ 2.2 $ 27.1 $ 23.6 Cinemark 34.3 29.1 25.4 Regal 35.8 28.8 26.1 Total founding members 72.3 85.0 75.1 NCM, Inc. 69.1 75.9 57.5 Total $ 141.4 $ 160.9 $ 132.6 |
Schedule of Amounts Due to Founding Members | Amounts due to founding members, net as of December 27, 2018 were comprised of the following (in millions): Cinemark Regal Total Theater access fees, net of beverage revenues and other encumbered theater payments $ 1.0 $ 1.5 $ 2.5 Distributions payable to founding members 13.7 14.2 27.9 Integration payments due from founding members (0.4 ) — (0.4 ) Total amounts due (from) to founding members, net $ 14.3 $ 15.7 $ 30.0 Amounts due to founding members, net as of December 28, 2017 were comprised of the following (in millions): AMC Cinemark Regal Total Theater access fees, net of beverage revenues and other encumbered theater payments $ 1.5 $ 1.0 $ 1.5 $ 4.0 Distributions payable to founding members 10.8 13.5 13.3 37.6 Integration payments due from founding members (8.5 ) (0.4 ) — (8.9 ) Total amounts due (from) to founding members, net $ 3.8 $ 14.1 $ 14.8 $ 32.7 |
Schedule of Amounts Due to/from Managing Member | Amounts due to/from managing member, net were comprised of the following (in millions): As of As of Distributions payable $ 26.6 $ 36.9 Cost and other reimbursement 1.1 1.4 Total $ 27.7 $ 38.3 |
Future Minimum Principal Payments of Note Receivable | Future minimum principal payments under the notes receivable as of December 27, 2018 are $5.6 million which is due in 2019. |
Related Party Founding Members | |
Schedule of Related Party Transactions | Following is a summary of the related party transactions between the Company and the founding members (in millions): Years Ended Included in the Statements of Income: (1) December 27, 2018 December 28, 2017 December 29, 2016 Revenue: Beverage concessionaire revenue (included in advertising revenue) (2) $ 28.4 $ 29.9 $ 28.7 Advertising inventory revenue (included in advertising revenue) (3) — — 0.4 Operating expenses: Theater access fee (4) 69.0 76.5 75.1 Purchase of movie tickets and concession products and rental of theater space (included in selling and marketing costs) (5) 1.1 2.1 1.6 Purchase of movie tickets and concession products and rental of theater space (included in advertising operating costs) 0.1 0.1 — Purchase of movie tickets and concession products and rental of theater space (included in other administrative and other costs) — — 0.1 Administrative fee - managing member (6) 17.8 12.8 20.2 Non-operating expenses: Interest income from notes receivable (included in interest income) (7) 0.3 0.6 0.8 ______________________________________________________________________ (1) AMC is no longer considered a related party as of July 5, 2018, as described further above. As such, the figures within the table above only include related party activity with AMC for the first six months of 2018. (2) For the full years ended December 27, 2018, December 28, 2017 and December 29, 2016, two of the founding members purchased 60 seconds of on-screen advertising time and one founding member purchased 30 seconds (with all three founding members having a right to purchase up to 90 seconds) from the Company to satisfy their obligations under their beverage concessionaire agreements at a 30 second equivalent CPM rate specified by the ESA. (3) The value of such purchases is calculated by reference to the Company’s advertising rate card. (4) Comprised of payments per theater attendee, payments per digital screen with respect to the founding member theaters included in the Company’s network and payments for access to higher quality digital cinema equipment. (5) Used primarily for marketing to the Company’s advertising clients. (6) Pursuant to the Management Services Agreement between NCM, Inc. and NCM LLC, NCM, Inc. provides certain specific management services to NCM LLC. In 2018, these services included the services of the Chief Executive Officer, President, Chief Financial Officer, Chief Revenue Officer and Senior Vice President, General Counsel, and Secretary. In exchange for these services, NCM LLC reimburses NCM, Inc. for compensation paid to the officers (including share-based compensation) and other expenses of the officers and for certain out-of-pocket costs. (7) Refer to the discussion of the Fathom Events sale under AC JV, LLC transactions below. As of Included in the Balance Sheets: December 27, December 28, Current portion of note receivable (1)(2) $ 4.2 $ 4.2 Long-term portion of note receivable (2) — 4.1 Interest receivable on notes receivable (included in other current assets) (2) 0.1 — Prepaid administrative fees to managing member (3) 0.6 0.8 Common unit adjustments, net of amortization and integration payments (included in intangible assets) 657.6 687.1 ______________________________________________________________________ (1) AMC is no longer considered a related party as of July 5, 2018, as described further above. As such, the figures within the table above only include related party activity with AMC for the first six months of 2018. (2) Refer to the discussion of the Fathom Events sale under AC JV, LLC transactions below. (3) The payments for estimated management services related to employment are made one month in advance. NCM LLC also provides administrative and support services to NCM, Inc. such as office facilities, equipment, supplies, payroll and accounting and financial reporting at no charge. Based on the limited activities of NCM, Inc. as a standalone entity, the Company does not believe such unreimbursed costs are significant. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the Company’s total outstanding debt as of December 27, 2018 and December 28, 2017 and the significant terms of its borrowing arrangements: Outstanding Balance as of Borrowings ($ in millions) December 27, 2018 December 28, 2017 Maturity Date Interest Rate Senior secured notes due 2022 $ 400.0 $ 400.0 April 15, 2022 6.000% Revolving credit facility 27.0 12.0 June 20, 2023 (1) Term loans 269.4 270.0 June 20, 2025 (1) Senior unsecured notes due 2026 235.0 250.0 August 15, 2026 5.750% Total borrowings 931.4 932.0 Less: Debt issuance costs related to term loans and senior notes (7.8 ) (8.7 ) Total borrowings, net 923.6 923.3 Less current portion of debt (2.7 ) — Carrying value of long-term debt $ 920.9 $ 923.3 ______________________________________________________________________ (1) The interest rates on the revolving credit facility and term loan are described below. |
Schedule of Annual Maturities on Credit Facility and Senior Notes | The scheduled annual maturities on the Senior Secured Credit Facility, Notes due 2022 and Notes due 2026 as of December 27, 2018 are as follows (in millions): Year Amount 2019 $ 2.7 2020 2.7 2021 2.7 2022 402.7 2023 29.7 Thereafter 490.9 Total $ 931.4 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Schedule of Share-Based Compensation Costs | The Company recognized $7.8 million , $11.2 million and $18.3 million for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 , respectively, of share-based compensation expense within network costs, selling and marketing costs, administrative and other costs and administrative – managing member in the Statements of Income as shown in the table below. Years Ended December 27, 2018 December 28, 2017 December 29, 2016 Share-based compensation costs included in network costs $ 0.6 $ 1.0 $ 1.1 Share-based compensation costs included in selling and marketing costs 2.5 4.1 6.0 Share-based compensation costs included in administrative and other costs 1.3 2.1 3.8 Share-based compensation costs included in administrative fee - managing member (1) 3.4 4.0 7.4 Total share-based compensation costs $ 7.8 $ 11.2 $ 18.3 ______________________________________________________________________ (1) Includes $0.0 million , $0.0 million , and $2.3 million of expense associated with the modification of certain former executive equity awards during the years ended December 27, 2018 , December 28, 2017 , and December 29, 2016, respectively, as described further below. |
Summary of Restricted Stock Award and Restricted Stock Unit Activity | A summary of restricted stock award and restricted stock unit activity as of December 27, 2018 , and changes during the year then ended are presented below: Number of Restricted Shares and Restricted Stock Units Weighted Average Grant- Date Fair Value Non-vested balance as of December 28, 2017 2,308,962 $ 14.70 Granted 1,019,173 $ 6.65 Vested (1) (1,067,615 ) $ 14.55 Forfeited (434,537 ) $ 10.24 Non-vested balance as of December 27, 2018 1,825,983 $ 11.31 ______________________________________________________________________ (1) Includes 333,439 vested shares that were withheld to cover tax obligations and were subsequently canceled. |
2007 Plan [Member] | |
Summary of Option Award Activity | A summary of option award activity under the 2007 Plan as of December 27, 2018 , and changes during the year then ended are presented below: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in millions) Outstanding as of December 28, 2017 2,165,181 $ 16.47 — $ — Forfeited (123,953 ) $ 16.94 Expired (90,478 ) $ 16.14 Outstanding as of December 27, 2018 1,950,750 $ 16.45 2.0 $ — Exercisable as of December 27, 2018 1,950,750 $ 16.45 2.0 $ — Vested and expected to vest as of December 27, 2018 1,950,750 $ 16.45 2.0 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Lease Payments Under Noncancelable Operating Leases | Future minimum lease payments under noncancelable operating leases as of December 27, 2018 are as follows (in millions): Year Minimum Lease Payments 2019 $ 3.5 2020 3.3 2021 3.4 2022 3.4 2023 3.4 Thereafter 22.1 Total $ 39.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Other Assets | Other investments consisted of the following (in millions): As of December 27, December 28, Investment in AC JV, LLC (1) $ 0.9 $ 1.0 Other investments (2) 2.1 2.5 Total $ 3.0 $ 3.5 ______________________________________________________________________ (1) Refer to Note 7—Related Party Transactions. (2) The Company received equity securities in privately held companies as consideration for a portion of advertising contracts. The equity securities were accounted for under the cost method and represent an ownership of less than 20% . The Company does not exert significant influence on these companies’ operating or financial activities. |
Estimated Fair Values of Company's Financial Instruments | 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 December 27, As of December 28, Carrying Value Fair Value (1) Carrying Value Fair Value (1) Term loans $ 269.4 $ 261.2 $ 270.0 $ 270.8 Senior Notes due 2022 400.0 401.8 400.0 407.3 Senior Notes due 2026 235.0 211.0 250.0 235.0 ______________________________________________________________________ (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. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | The Company’s allowance for doubtful accounts for the years ended December 27, 2018 , December 28, 2017 and December 29, 2016 was as follows (in millions): Years Ended December 27, 2018 December 28, 2017 December 29, 2016 ALLOWANCE FOR DOUBTFUL ACCOUNTS: Balance at beginning of period $ 6.0 $ 6.3 $ 5.6 Provision for bad debt 1.6 1.1 2.1 Write-offs, net (1.6 ) (1.4 ) (1.4 ) Balance at end of period $ 6.0 $ 6.0 $ 6.3 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following represents selected information from the Company’s unaudited quarterly Statements of Income for the years ended December 27, 2018 and December 28, 2017 (in millions): 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 80.2 $ 113.7 $ 110.1 $ 137.4 Operating expenses 69.2 73.5 67.8 76.6 Operating income 11.0 40.2 42.3 60.8 Net (loss) income (3.0 ) 25.0 28.5 47.9 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 71.9 $ 97.1 $ 116.4 $ 140.7 Operating expenses 66.8 68.8 66.1 70.5 Operating (loss) income 5.1 28.3 50.3 70.2 Net (loss) income (7.9 ) 15.4 37.3 57.1 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||||
Dec. 27, 2018USD ($)customeritemshares | Dec. 28, 2017USD ($)customeritem | Dec. 29, 2016USD ($)customer | Dec. 29, 2017USD ($) | Dec. 31, 2015USD ($) | |
Accounting Policies [Line Items] | |||||
Common membership units outstanding | shares | 157,637,220 | ||||
Membership units exchangeable into common stock ratio | 100.00% | ||||
Net book value | $ 33.6 | $ 30.7 | |||
Depreciation expense | 12.6 | 10.9 | $ 8.6 | ||
Research and development expense | 1.7 | 3.6 | 3.4 | ||
Loss on write-off of property, plant and equipment | 0.5 | 0.1 | 0.2 | ||
Deferred financing costs | $ 12.8 | 10 | 12.6 | $ 12.9 | |
Cumulative-effect adjustment due to adoption of ASU 2014-09 | $ (0.2) | ||||
Restricted Stock and Restricted Stock Units [Member] | |||||
Accounting Policies [Line Items] | |||||
Share-based compensation, vesting period | 3 years | ||||
Software And Development Costs [Member] | |||||
Accounting Policies [Line Items] | |||||
Net book value | $ 17.4 | 16.5 | |||
Depreciation expense | $ 6.7 | $ 6 | $ 3.9 | ||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||
Accounting Policies [Line Items] | |||||
Number of advertising agency groups contributing to more than 10% of outstanding gross receivable balance | item | 0 | 0 | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||
Accounting Policies [Line Items] | |||||
Number of customers contributing to more than 10% of revenue | customer | 0 | 0 | 0 | ||
NCM Inc. [Member] | |||||
Accounting Policies [Line Items] | |||||
Common membership units outstanding | shares | 76,976,398 | ||||
Percentage of common membership units outstanding | 48.80% | ||||
Cinemark | |||||
Accounting Policies [Line Items] | |||||
Common membership units outstanding | shares | 39,518,644 | ||||
Percentage of common membership units outstanding | 25.10% | ||||
Regal | |||||
Accounting Policies [Line Items] | |||||
Common membership units outstanding | shares | 41,142,178 | ||||
Percentage of common membership units outstanding | 26.10% | ||||
AMC | |||||
Accounting Policies [Line Items] | |||||
Common membership units outstanding | shares | 0 | ||||
Percentage of common membership units outstanding | 0.00% | ||||
Minimum [Member] | |||||
Accounting Policies [Line Items] | |||||
Range of terms, in years | 1 year | ||||
Minimum [Member] | Software And Development Costs [Member] | |||||
Accounting Policies [Line Items] | |||||
Estimated useful life | 3 years | ||||
Maximum [Member] | |||||
Accounting Policies [Line Items] | |||||
Range of terms, in years | 20 years | ||||
Maximum [Member] | Software And Development Costs [Member] | |||||
Accounting Policies [Line Items] | |||||
Estimated useful life | 5 years | ||||
Accounting Standards Update 2014-09 | |||||
Accounting Policies [Line Items] | |||||
Cumulative-effect adjustment due to adoption of ASU 2014-09 | $ 0.2 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Schedule of Receivables) (Details) - USD ($) $ in Millions | Dec. 27, 2018 | Dec. 28, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for doubtful accounts | $ (6) | $ (6) |
Total | 149.9 | 160.6 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | 154 | 166.4 |
Other Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 1.9 | $ 0.2 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies (Schedule of Useful Lives) (Details) | 12 Months Ended |
Dec. 27, 2018 | |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 4 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Computer Hardware And Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer Hardware And Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life description | Lesser of lease term or asset life |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies (Changes in Debt Issuance Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Accounting Policies [Abstract] | |||
Beginning balance | $ 10 | $ 12.6 | $ 12.9 |
Debt issuance payments | 6.4 | 0 | 4.8 |
Amortization of debt issuance costs | (2.6) | (2.6) | (2.6) |
Write-off of debt issuance costs | (1) | 0 | (2.5) |
Ending balance | $ 12.8 | $ 10 | $ 12.6 |
Revenue From Contracts with C_3
Revenue From Contracts with Customers (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue | $ 441.4 | $ 426.1 | $ 447.6 |
Accrued Reserves | $ 8 | 5.5 | |
Payment terms | 30 days | ||
Contract terms | 2 years | ||
Remaining performance obligation | $ 60.3 | ||
Unbilled contracts receivable | 6 | 10.6 | |
Advertising Barter Transactions | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue | 5.9 | 0.8 | 2.5 |
Advertising operating costs | $ 5 | $ 1.4 | $ 2.3 |
Revenue From Contracts with C_4
Revenue From Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 441.4 | $ 426.1 | $ 447.6 |
National advertising revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 312 | 296.3 | 311.9 |
Local and regional advertising revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 98 | 99.9 | 107 |
Founding member advertising revenue from beverage concessionaire agreements | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 31.4 | $ 29.9 | $ 28.7 |
Revenue From Contracts with C_5
Revenue From Contracts with Customers (Deferred Revenue and Unbilled Accounts Receivable) (Details) $ in Millions | 12 Months Ended |
Dec. 27, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at beginning of period | $ 7.1 |
Performance obligations satisfied | 7.1 |
New contract liabilities | 7.3 |
Balance at end of period | $ 7.3 |
Property and Equipment (Summary
Property and Equipment (Summary of Property and Equipment) (Details) - USD ($) $ in Millions | Dec. 27, 2018 | Dec. 28, 2017 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (62.5) | $ (70.4) |
Subtotal | 30.7 | 26.5 |
Construction in progress | 2.9 | 4.2 |
Total property and equipment | 33.6 | 30.7 |
Equipment, computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 90.8 | 92.9 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 2.4 | $ 4 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 12.6 | $ 10.9 | $ 8.6 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net of accumulated amortization | $ 684.5 | $ 717.2 | $ 560.5 |
Amortization expense | $ 27.3 | $ 26.5 | $ 27 |
Founding Member and Managing Member | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining life | 18 years 2 months 17 days | 19 years 2 months 12 days | |
Network Affiliates [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net of accumulated amortization | $ 26.9 | $ 30 | |
Weighted average remaining life | 10 years | 11 years | |
Common Unit Adjustments And Integration Payments [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net of accumulated amortization | $ 657.6 | $ 687.1 | |
Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net of accumulated amortization | $ 0.1 | $ 0.1 | |
Weighted average remaining life | 1 year 6 months | 2 years 6 months | |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Percentage increase (decrease) in theater attendance for Common Unit adjustment to occur | (2.00%) |
Intangible Assets (Summary of I
Intangible Assets (Summary of Intangible Asset's) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Gross carrying amount, beginning balance | $ 862.6 | $ 679.4 | |
Accumulated amortization, beginning balance | (145.4) | (118.9) | |
Total intangible assets, net, beginning balance | 717.2 | 560.5 | |
Additions | 16 | 204.1 | |
Amortization | (27.3) | (26.5) | $ (27) |
Integration and other encumbered theater payments | (21.4) | (20.9) | |
Gross carrying amount, ending balance | 857.2 | 862.6 | 679.4 |
Accumulated amortization, ending balance | (172.7) | (145.4) | (118.9) |
Total intangible assets, net, ending balance | $ 684.5 | $ 717.2 | $ 560.5 |
Intangible Assets (Summary of_2
Intangible Assets (Summary of Intangible Asset's) (Additional Information) (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 29, 2018USD ($)shares | Mar. 30, 2017USD ($)Theatershares | Dec. 27, 2018USD ($) | Dec. 28, 2017USD ($) | Dec. 29, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Common membership units issued (in shares) | shares | 2,821,710 | 2,351,029 | |||
Common membership units issued (in shares) | shares | 3,736,860 | ||||
Common membership units returned (in shares) | shares | 915,150 | ||||
Increase (decrease) in intangible assets, net | $ | $ 15,900,000 | $ 201,800,000 | |||
Purchase of intangible assets from affiliate | $ | $ 100,000 | $ 2,100,000 | $ 2,300,000 | ||
Payments from related parties, theater payments | $ | 22,700,000 | 12,900,000 | $ 2,400,000 | ||
Software [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Purchase of intangible assets from affiliate | $ | 200,000 | ||||
AMC | NCM, Inc. and NCM LLC, MOU with AMC to Effectuate Aspects of Final Judgment [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Percentage increase (decrease) in theater attendance for Common Unit adjustment to occur | 9.50% | ||||
Number of theaters required to transfer advertising rights to another advertising provider | Theater | 17 | ||||
Common membership units surrendered | shares | 4,657,673 | ||||
Common membership units surrendered under adjustment for divested theaters | shares | 2,850,453 | ||||
Common membership units surrendered under compensate for lost operating income for divested theaters | shares | 1,807,220 | ||||
Common membership units surrendered, value, under compensate for lost operating income for divested theaters | $ | $ 25,000,000 | ||||
Compensate for lost operating income for divested theaters, term | 10 years | ||||
AMC;s Acquisition of Carmike Cinemas, Inc [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Common membership units issued (in shares) | shares | 18,425,423 | ||||
AMC and Cinemark [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Increase (decrease) in intangible assets, net | $ | 0 | 0 | |||
Payments from related parties, theater payments | $ | $ 0 | $ 0 |
Intangible Assets (Summary of E
Intangible Assets (Summary of Estimated Aggregate Amortization Expense) (Details) $ in Millions | Dec. 27, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 27.3 |
2,019 | 27.1 |
2,020 | 27.1 |
2,021 | 26.8 |
2,022 | $ 26.4 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 27, 2018 | Dec. 28, 2017 |
Payables and Accruals [Abstract] | ||
Make-good reserve | $ 8 | $ 5.5 |
Accrued interest | 10.3 | 11.6 |
Deferred rent | 0.2 | 0.8 |
Other accrued expenses | 2.8 | 1.6 |
Total accrued expenses | $ 21.3 | $ 19.5 |
Members' Deficit (Details)
Members' Deficit (Details) | 12 Months Ended |
Dec. 27, 2018 | |
Related Party Founding Members | |
Equity [Line Items] | |
Term of advertising services | 30 years |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2018 | Dec. 31, 2015 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | Dec. 26, 2013 | |
Related Party Transaction [Line Items] | ||||||
On-screen advertising time to satisfy agreement obligations, in seconds | 30 seconds | 30 seconds | 30 seconds | |||
Cash payment due to founding members/managing member | $ 27,900,000 | $ 37,600,000 | ||||
Cash payment based on variable weighted average closing price day of NCM, Inc.'s | 3 days | |||||
Membership units exchangeable into common stock ratio | 100.00% | |||||
Common stock, shares issued | 1,000,000 | 14,800,000 | ||||
Cash distributions from non-consolidated entities | $ 200,000 | $ 300,000 | $ 200,000 | |||
Network costs | 13,300,000 | 15,800,000 | 17,100,000 | |||
AC JV, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 4.00% | |||||
Investment in AC JV, LLC | 900,000 | 1,000,000 | ||||
Cash distributions from non-consolidated entities | 200,000 | 300,000 | 200,000 | |||
Equity in earnings of non-consolidated entities | 200,000 | 300,000 | 0 | |||
Related Party Founding Members | ||||||
Related Party Transaction [Line Items] | ||||||
Cash payment due to founding members/managing member | 27,900,000 | |||||
Promissory notes receivable from founding members | $ 5,600,000 | 8,300,000 | ||||
Related Party Founding Members | AC JV, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Promissory notes receivable from founding members | $ 25,000,000 | |||||
Interest rate on notes receivable | 5.00% | |||||
Related Party Founding Members | Promissory Notes | AC JV, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Notes receivable payment term | Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing. | |||||
Managing Member | ||||||
Related Party Transaction [Line Items] | ||||||
Cash payment due to founding members/managing member | $ 26,600,000 | 36,900,000 | ||||
AMC | ||||||
Related Party Transaction [Line Items] | ||||||
Cash payment due to founding members/managing member | $ 10,800,000 | |||||
Number of NCM LLC common units converted to NCM Inc.'s common stock | 15,600,000 | |||||
Gain (loss) from equity transaction due to change in ownership interest | $ 0 | |||||
Proceeds from sale of common stock | 0 | |||||
Cash dividends on shares of NMC Inc | 300,000 | 100,000 | 200,000 | |||
Sale of membership units (in shares) | 21,477,480 | |||||
AMC | AC JV, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 32.00% | |||||
Promissory notes receivable from founding members | 5,600,000 | $ 8,300,000 | ||||
Cinemark | ||||||
Related Party Transaction [Line Items] | ||||||
Cash payment due to founding members/managing member | 13,700,000 | 13,500,000 | ||||
Cinemark | AC JV, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 32.00% | |||||
Promissory notes receivable from founding members | $ 8,300,000 | |||||
Regal | ||||||
Related Party Transaction [Line Items] | ||||||
Cash payment due to founding members/managing member | 14,200,000 | 13,300,000 | ||||
Regal | AC JV, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 32.00% | |||||
Promissory notes receivable from founding members | $ 8,300,000 | |||||
AC JV, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Network costs | $ 200,000 | $ 300,000 | $ 200,000 | |||
Minimum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
On-screen advertising time to satisfy agreement obligations, in seconds | 30 seconds | |||||
Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
On-screen advertising time to satisfy agreement obligations, in seconds | 60 seconds |
Related Party Transactions (Sum
Related Party Transactions (Summary of Transactions Between the Company and the Founding Members Included in Statements of Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Related Party Transaction [Line Items] | |||
Revenue | $ 441.4 | $ 426.1 | $ 447.6 |
Selling and marketing costs | 66.5 | 72 | 72.8 |
Administrative and other costs | 30.5 | 25.1 | 23.6 |
Managing Member Administrative Fee | 17.8 | 12.8 | 20.2 |
Related Party Founding Members | |||
Related Party Transaction [Line Items] | |||
Theater access fee | 69 | 76.5 | 75.1 |
Selling and marketing costs | 1.1 | 2.1 | 1.6 |
Advertising operating costs | 0.1 | 0.1 | 0 |
Administrative and other costs | 0 | 0 | 0.1 |
Managing Member Administrative Fee | 17.8 | 12.8 | 20.2 |
Interest income from notes receivable (included in interest income) | 0.3 | 0.6 | 0.8 |
Related Party Founding Members | Advertising Inventory | |||
Related Party Transaction [Line Items] | |||
Revenue | 0 | 0 | 0.4 |
Related Party Founding Members | Beverage Concessionaire | |||
Related Party Transaction [Line Items] | |||
Revenue | $ 28.4 | $ 29.9 | $ 28.7 |
Related Party Transactions (S_2
Related Party Transactions (Summary of Transactions between the Company and the Founding Members Included in Statements of Income) (Additional Information) (Details) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 27, 2018 | Dec. 28, 2017 | |
Related Party Transaction [Line Items] | |||
On-screen advertising time purchased, in seconds | 60 seconds | ||
On-screen advertising time to satisfy agreement obligations, in seconds | 30 seconds | 30 seconds | 30 seconds |
One Founding Members [Member] | |||
Related Party Transaction [Line Items] | |||
On-screen advertising time purchased, in seconds | 30 seconds | 30 seconds | 30 seconds |
Two Founding Members [Member] | |||
Related Party Transaction [Line Items] | |||
On-screen advertising time purchased, in seconds | 60 seconds | 60 seconds | 60 seconds |
Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
On-screen advertising time which founding members have right to purchase, in seconds | 90 seconds | 90 seconds | 90 seconds |
On-screen advertising time to satisfy agreement obligations, in seconds | 60 seconds | ||
Minimum [Member] | |||
Related Party Transaction [Line Items] | |||
On-screen advertising time to satisfy agreement obligations, in seconds | 30 seconds |
Related Party Transactions (S_3
Related Party Transactions (Summary of Transactions between the Company and the Founding Members Included in Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 |
Related Party Transaction [Line Items] | |||
Current portion of note receivable- founding members | $ 5.6 | $ 4.2 | |
Long-term portion of note receivable - founding members | 0 | 4.1 | |
Prepaid administrative fees to managing member | 0.6 | 0.8 | |
Intangible assets, net of accumulated amortization | 684.5 | 717.2 | $ 560.5 |
Related Party Founding Members | |||
Related Party Transaction [Line Items] | |||
Current portion of note receivable- founding members | 4.2 | 4.2 | |
Long-term portion of note receivable - founding members | 0 | 4.1 | |
Interest receivable on notes receivable (included in other current assets) | 0.1 | 0 | |
Prepaid administrative fees to managing member | 0.6 | 0.8 | |
Intangible assets, net of accumulated amortization | $ 657.6 | $ 687.1 |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Mandatory Distributions to Members) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | $ 141.4 | $ 160.9 | $ 132.6 |
AMC | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | 2.2 | 27.1 | 23.6 |
Cinemark | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | 34.3 | 29.1 | 25.4 |
Regal | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | 35.8 | 28.8 | 26.1 |
Related Party Founding Members | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | 72.3 | 85 | 75.1 |
NCM Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared to members | $ 69.1 | $ 75.9 | $ 57.5 |
Related Party Transactions (S_4
Related Party Transactions (Schedule of Amounts Due to Founding Members) (Details) - USD ($) $ in Millions | Dec. 27, 2018 | Dec. 28, 2017 |
Related Party Transaction [Line Items] | ||
Theater access fees, net of beverage revenues and other encumbered theater payments | $ 2.5 | $ 4 |
Distributions payable to founding members | 27.9 | 37.6 |
Integration payments due from founding members | (0.4) | (8.9) |
Total | (30) | (32.7) |
AMC | ||
Related Party Transaction [Line Items] | ||
Theater access fees, net of beverage revenues and other encumbered theater payments | 1.5 | |
Distributions payable to founding members | 10.8 | |
Integration payments due from founding members | (8.5) | |
Total | (3.8) | |
Cinemark | ||
Related Party Transaction [Line Items] | ||
Theater access fees, net of beverage revenues and other encumbered theater payments | 1 | 1 |
Distributions payable to founding members | 13.7 | 13.5 |
Integration payments due from founding members | (0.4) | (0.4) |
Total | (14.3) | (14.1) |
Regal | ||
Related Party Transaction [Line Items] | ||
Theater access fees, net of beverage revenues and other encumbered theater payments | 1.5 | 1.5 |
Distributions payable to founding members | 14.2 | 13.3 |
Integration payments due from founding members | 0 | |
Total | $ (15.7) | $ (14.8) |
Related Party Transactions (S_5
Related Party Transactions (Schedule of Amounts Due to/from Managing Member) (Details) - USD ($) $ in Millions | Dec. 27, 2018 | Dec. 28, 2017 |
Related Party Transaction [Line Items] | ||
Distributions payable | $ 27.9 | $ 37.6 |
Total | 27.7 | 38.3 |
Managing Member | ||
Related Party Transaction [Line Items] | ||
Distributions payable | 26.6 | 36.9 |
Cost and other reimbursement | 1.1 | 1.4 |
Total | $ 27.7 | $ 38.3 |
Related Party Transactions (S_6
Related Party Transactions (Schedule of Amounts Due to/from Managing Member) (Additional Information) (Details) $ in Millions | 9 Months Ended |
Sep. 28, 2017USD ($) | |
Cost And Other Reimbursement Receivable | Member's Capital | |
Related Party Transaction [Line Items] | |
Increase (decrease) related to correction of out of period errors | $ (6.4) |
Borrowings (Schedule of Outstan
Borrowings (Schedule of Outstanding Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | Aug. 19, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Outstanding Balance | $ 931.4 | ||||
Debt Issuance Costs, Net | 12.8 | $ 10 | $ 12.6 | $ 12.9 | |
Long-term Debt | 923.6 | 923.3 | |||
Long-term Debt, Current Maturities | (2.7) | 0 | |||
Carrying value of long-term debt | 920.9 | 923.3 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | 27 | ||||
Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | 269.4 | ||||
Senior Unsecured Notes Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 5.75% | ||||
National Cine Media L L C [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | 931.4 | 932 | |||
Debt Issuance Costs, Net | $ 7.8 | 8.7 | |||
National Cine Media L L C [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | 12 | ||||
Maturity Date | Jun. 20, 2023 | ||||
National Cine Media L L C [Member] | Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | $ 269.4 | 270 | |||
Maturity Date | Jun. 20, 2025 | ||||
National Cine Media L L C [Member] | Senior Notes Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | $ 400 | 400 | |||
Maturity Date | Apr. 15, 2022 | ||||
Interest Rate | 6.00% | ||||
National Cine Media L L C [Member] | Senior Unsecured Notes Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | $ 235 | $ 250 | |||
Maturity Date | Aug. 15, 2026 | ||||
Interest Rate | 5.75% |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||
Sep. 27, 2018 | Jun. 28, 2018USD ($) | Dec. 27, 2018USD ($) | Dec. 28, 2017USD ($) | Dec. 29, 2016USD ($) | Aug. 19, 2016USD ($) | Apr. 27, 2012USD ($) | |
Debt Instrument [Line Items] | |||||||
Debt Instrument, carrying value | $ 931,400,000 | ||||||
Senior secured leverage ratio, cash and cash equivalents basis | 100,000,000 | ||||||
Repayments of debt | $ 270,700,000 | $ 0 | $ 0 | ||||
Net total leverage ratio, covenant | 6.25 | ||||||
Dividend restriction, net senior secured leverage ratio | 4.50 | ||||||
Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Net total leverage ratio | 4.20 | ||||||
Senior Unsecured Notes Due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, frequency of periodic payment | The Notes due 2021 pay interest semi-annually in arrears on January 15 and July 15 of each year, which commenced January 15, 2012. | ||||||
Senior Secured Notes Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 400,000,000 | ||||||
Stated interest rate | 6.00% | ||||||
Date of first required interest payment | Oct. 15, 2012 | ||||||
Debt instrument, frequency of periodic payment | The Notes due 2022 pay interest semi-annually in arrears on April 15 and October 15 of each year, which commenced October 15, 2012. | ||||||
Senior Secured Notes Due 2022 | On or After April 15, 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument redemption description | The Company may redeem all or any portion of the Notes due 2022, at once or over time, on or after April 15, 2017 at specified redemption prices, plus accrued and unpaid interest, if any, to the redemption date. | ||||||
Senior Notes Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument issued percentage of face value | 100.00% | ||||||
Senior Unsecured Notes Due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 235,000,000 | $ 250,000,000 | |||||
Stated interest rate | 5.75% | ||||||
Date of first required interest payment | Feb. 15, 2017 | ||||||
Debt instrument, frequency of periodic payment | The Notes due 2026 pay interest semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2017. | ||||||
Debt instrument issued percentage of face value | 100.00% | ||||||
Repurchase amount | $ 15,000,000 | ||||||
Gain (loss) related to debt issuance costs | $ 600,000 | ||||||
Senior Unsecured Notes Due 2026 | Prior to August 15, 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument redemption price percentage | 100.00% | ||||||
Debt instrument redemption description | The Company may redeem all or any portion of the Notes due 2026 prior to August 15, 2021, at once or over time, at 100% of the principal amount plus the applicable make-whole premium, plus accrued and unpaid interest, if any, to the redemption date. | ||||||
Senior Unsecured Notes Due 2026 | On or After August 15, 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument redemption description | The Company may redeem all or any portion of the Notes due 2026 prior to August 15, 2021, at once or over time, at 100% of the principal amount plus the applicable make-whole premium, plus accrued and unpaid interest, if any, to the redemption date. | ||||||
Senior Unsecured Notes Due 2026 | Prior to August 15, 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument redemption price percentage | 105.75% | ||||||
Debt instrument redemption description | In addition, at any time prior to August 15, 2019, the Company may on any one or more occasions redeem up to 35% of the original aggregate principal amount of Notes due 2026 from the net proceeds of certain equity offerings at a redemption price equal to 105.750% of the principal amount of the Notes due 2026 redeemed, plus accrued and unpaid interest, if any, to the redemption date. | ||||||
Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Dividend restriction, net senior secured leverage ratio | 5.50 | ||||||
Maximum [Member] | Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Dividend restriction, net senior secured leverage ratio | 5.50 | ||||||
Maximum [Member] | Senior Unsecured Notes Due 2026 | Prior to August 15, 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Redemption amount as percentage of aggregate principal amount | 35.00% | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing amount of credit facility | $ 175,000,000 | ||||||
Debt Instrument, carrying value | 27,000,000 | ||||||
Remaining borrowing capacity of credit facility | $ 143,200,000 | ||||||
Unused line fee, percent | 0.50% | ||||||
Weighted-average interest rate | 4.90% | ||||||
Revolving Credit Facility [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percent | 2.00% | ||||||
Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percent | 2.25% | ||||||
Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percent | 1.75% | ||||||
Revolving Credit Facility [Member] | Base Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percent | 1.00% | ||||||
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percent | 1.25% | ||||||
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percent | 0.75% | ||||||
Revolving Credit Facility [Member] | Letters of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Remaining borrowing capacity of credit facility | $ 4,800,000 | ||||||
Term Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, carrying value | $ 269,400,000 | ||||||
Weighted-average interest rate | 5.50% | ||||||
Amortization rate | 1.00% | ||||||
Repayments of debt | $ 600,000 | ||||||
Term Loans [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percent | 2.75% | 3.00% | |||||
Term Loans [Member] | Base Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percent | 1.75% | 2.00% | |||||
Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Senior secured leverage ratio | 310.00% | ||||||
Debt issuance costs | $ 6,500,000 | ||||||
Gain (loss) related to debt issuance costs | $ (1,200,000) | ||||||
Net total leverage ratio, covenant | 6.25 | ||||||
Dividend restriction, net senior secured leverage ratio | 4.50 | ||||||
Change Of Control | Senior Secured Notes Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument redemption price percentage | 101.00% | ||||||
Change Of Control | Senior Unsecured Notes Due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument redemption price percentage | 101.00% |
Borrowings (Schedule of Annual
Borrowings (Schedule of Annual Maturities on Credit Facility and Senior Notes) (Details) $ in Millions | Dec. 27, 2018USD ($) |
Debt Disclosure [Abstract] | |
Thereafter | $ 490.9 |
Total | 931.4 |
2,019 | 2.7 |
2,020 | 2.7 |
2,021 | 2.7 |
2,022 | 402.7 |
2,023 | $ 29.7 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | |||||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | Jan. 01, 2015 | Dec. 26, 2013 | Dec. 27, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock available for issuance | 4,400,000 | |||||
Common stock available for grants | 2,812,787 | |||||
Achievement of percentage in performance based restricted stock | 100.00% | |||||
Recognized share-based compensation expense | $ 7,800,000 | $ 11,200,000 | $ 18,300,000 | |||
Capitalized share-based compensation expense | $ 200,000 | 300,000 | 500,000 | |||
Number of additional restricted stock issued under satisfying maximum performance criteria | 535,629 | |||||
Number of restricted stock and restricted stock units expected to vest, after consideration of expected forfeitures of shares | 1,259,308 | |||||
Administrative Fee – Managing Member [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recognized share-based compensation expense | $ 3,400,000 | 4,000,000 | 7,400,000 | |||
Share-based compensation expense related to modification of certain former executive equity awards | 0 | 0 | 2,300,000 | |||
Unvested Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense related to non-vested options | 0 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense related to non-vested options | $ 5,200,000 | |||||
Weighted average remaining period over which unrecognized compensation costs will be recognized | 1 year 7 months 6 days | |||||
Fair value of awards vested | $ 15,500,000 | $ 17,300,000 | $ 14,700,000 | |||
Vesting period | 3 years | |||||
Vesting percentage for year | 33.33% | |||||
Measurement period | 3 years | |||||
Weighted average grant date fair value of granted options | $ 6.65 | $ 14.34 | $ 15.03 | |||
Vesting description | The Company has issued time-based restricted stock to its employees which vests over a three-year period with one-third vesting on each anniversary of the date of grant and performance-based restricted stock which vests following a three-year measurement period to the extent that the Company achieves specified non-GAAP targets at the end of the measurement period. The Company also grants restricted stock units to NCM, Inc.’s non-employee directors that vest after approximately one year. | |||||
Restricted Stock [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Estimated annual forfeiture rate, percentage | 2.00% | |||||
Restricted Stock [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Estimated annual forfeiture rate, percentage | 6.00% | |||||
Stock Options [Member] | 2007 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options, granted | 0 | 0 | 0 | 0 | 0 | 0 |
Intrinsic value of options exercised | $ 0 | $ 100,000 | $ 100,000 | |||
Stock Options [Member] | 2007 Plan [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options contractual term | 10 years | |||||
Stock Options [Member] | 2007 Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options contractual term | 15 years | |||||
Restricted Stock Units (RSUs) [Member] | NCM Inc. [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Share-Based Compensation Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation costs | $ 7.8 | $ 11.2 | $ 18.3 |
Network Costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation costs | 0.6 | 1 | 1.1 |
Selling and Marketing Costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation costs | 2.5 | 4.1 | 6 |
Administrative and Other Costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation costs | 1.3 | 2.1 | 3.8 |
Administrative Fee – Managing Member [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation costs | $ 3.4 | $ 4 | $ 7.4 |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Share-Based Compensation Costs) (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Administrative Fee – Managing Member [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense related to modification of certain former executive equity awards | $ 0 | $ 0 | $ 2.3 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of Option Award Activity) (Details) - 2007 Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 27, 2018 | Dec. 28, 2017 | |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | ||
Options, Outstanding, beginning balance (in shares) | 2,165,181 | |
Options, Forfeited (in shares) | (123,953) | |
Options, Expired (in shares) | (90,478) | |
Options, Outstanding, ending balance (in shares) | 1,950,750 | 2,165,181 |
Options, Exercisable (in shares) | 1,950,750 | |
Options, Vested and Expected to Vest (in shares) | 1,950,750 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price, Outstanding, beginning balance (in dollars per share) | $ 16.47 | |
Weighted average exercise price, Forfeited (in dollars per share) | 16.94 | |
Weighted average exercise price, Expired (in dollars per share) | 16.14 | |
Weighted average exercise price, Outstanding, ending balance (in dollars per share) | 16.45 | $ 16.47 |
Weighted average exercise price, Exercisable (in dollars per share) | 16.45 | |
Weighted average exercise price, Vested and Expected to Vest (in dollars per share) | $ 16.45 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||
Weighted average remaining contractual life, Outstanding | 2 years | 0 years |
Weighted average remaining contractual life, Exercisable | 2 years | |
Weighted average remaining contractual life, Vested and Expected to Vest | 2 years |
Share-Based Compensation (Sum_2
Share-Based Compensation (Summary of Restricted Stock Award and Restricted Stock Unit Activity) (Details) | 12 Months Ended |
Dec. 27, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of restricted shares and restricted stock units, Non-vested, beginning balance (in shares) | shares | 2,308,962 |
Number of restricted shares and restricted stock units, Granted (in shares) | shares | 1,019,173 |
Number of restricted shares and restricted stock units, Vested (in shares) | shares | (1,067,615) |
Number of restricted shares and restricted stock units, Forfeited (in shares) | shares | (434,537) |
Number of restricted shares and restricted stock units, Non-vested, ending balance (in shares) | shares | 1,825,983 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted average grant-date fair value, Non-vested, beginning balance (in dollars per share) | $ / shares | $ 14.70 |
Weighted average grant-date fair value, Granted (in dollars per share) | $ / shares | 6.65 |
Weighted average grant-date fair value, Vested (in dollars per share) | $ / shares | 14.55 |
Weighted average grant-date fair value, Forfeited (in dollars per share) | $ / shares | 10.24 |
Weighted average grant-date fair value, Non-vested, ending balance (in dollars per share) | $ / shares | $ 11.31 |
Share-Based Compensation (Sum_3
Share-Based Compensation (Summary of Restricted Stock Award and Restricted Stock Unit Activity) (Additional Information) (Details) | 12 Months Ended |
Dec. 27, 2018shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Vested shares withheld to cover tax obligations | 333,439 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Retirement Benefits [Abstract] | |||
Percent of compensation participants may contribute | 20.00% | ||
Discretionary contributions | $ 1.2 | $ 1.2 | $ 1.3 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Other Commitments [Line Items] | |||
Total lease expense | $ 3,800,000 | $ 2,200,000 | $ 2,300,000 |
Expense for early lease termination fee | 1,800,000 | ||
Maximum potential payment | 70,800,000 | ||
Guarantee obligations amount paid | 700,000 | 100,000 | |
Liabilities recorded for related party obligations | 100,000 | 0 | |
Related Party Founding Members | |||
Other Commitments [Line Items] | |||
Liabilities recorded for related party obligations | $ 0 | $ 0 | |
Percentage of increase in payment per theater patron | 8.00% | ||
Term of increase in payment percentage per theater patron | 5 years | ||
Percentage of increase in payment per digital screen and digital cinema equipment | 5.00% | ||
Minimum [Member] | |||
Other Commitments [Line Items] | |||
Range of terms, in years | 1 year | ||
Minimum [Member] | Related Party Founding Members | |||
Other Commitments [Line Items] | |||
Aggregate percentage of theater access fee paid | 12.00% | ||
Maximum [Member] | |||
Other Commitments [Line Items] | |||
Range of terms, in years | 20 years |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Minimum Lease Payments Under Noncancelable Operating Leases) (Details) $ in Millions | Dec. 27, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 3.5 |
2,019 | 3.3 |
2,020 | 3.4 |
2,021 | 3.4 |
2,022 | 3.4 |
Thereafter | 22.1 |
Total | $ 39.1 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Other Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 27, 2018 | Dec. 28, 2017 | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Other investments | $ 2.1 | $ 2.5 |
Total other investments | $ 3 | $ 3.5 |
Maximum [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Cost-method ownership percentage | 20.00% | 20.00% |
AC JV, LLC | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Investment in AC JV, LLC | $ 0.9 | $ 1 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of investment | $ 0.4 | $ 3.1 | $ 0.7 |
Remaining value of respective impaired investments | 0 | 0.1 | |
Related Party Founding Members | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Promissory notes receivable from founding members | $ 5.6 | $ 8.3 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Company's Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 27, 2018 | Dec. 28, 2017 |
Term Loans [Member] | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | $ 269.4 | $ 270 |
Term Loans [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 261.2 | 270.8 |
Senior Secured Notes Due 2022 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 400 | 400 |
Senior Secured Notes Due 2022 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 401.8 | 407.3 |
Senior Unsecured Notes Due 2026 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 235 | 250 |
Senior Unsecured Notes Due 2026 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | $ 211 | $ 235 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Schedule of Valuation and Qualifying Accounts) (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 6 | $ 6.3 | $ 5.6 |
Provision for bad debt | 1.6 | 1.1 | 2.1 |
Write-offs, net | (1.6) | (1.4) | (1.4) |
Balance at end of period | $ 6 | $ 6 | $ 6.3 |
Quarterly Financial Data (Sched
Quarterly Financial Data (Schedule of Quarterly Financial Data) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 28, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 137.4 | $ 110.1 | $ 113.7 | $ 80.2 | $ 140.7 | $ 116.4 | $ 97.1 | $ 71.9 | |||
Operating expenses | 76.6 | 67.8 | 73.5 | 69.2 | 70.5 | 66.1 | 68.8 | 66.8 | $ 287.1 | $ 272.2 | $ 274.6 |
OPERATING INCOME | 60.8 | 42.3 | 40.2 | 11 | 70.2 | 50.3 | 28.3 | 5.1 | 154.3 | 153.9 | 173 |
Net (loss) income | $ 47.9 | $ 28.5 | $ 25 | $ (3) | $ 57.1 | $ 37.3 | $ 15.4 | $ (7.9) | $ 98.4 | $ 101.9 | $ 109.3 |