Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | READING INTERNATIONAL INC | |
Trading Symbol | rdi | |
Entity Central Index Key | 716,634 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 21,503,376 | |
Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 1,680,590 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | [1] |
ASSETS | |||
Cash and cash equivalents | $ 11,031 | $ 19,017 | |
Receivables | 6,700 | 8,772 | |
Inventory | 1,326 | 1,391 | |
Prepaid and other current assets | 17,052 | 5,787 | |
Land held for sale | 39,800 | 37,674 | |
Total current assets | 75,909 | 72,641 | |
Operating property, net | 216,358 | 211,886 | |
Investment and development property, net | 50,231 | 43,687 | |
Investment in unconsolidated joint ventures | 5,259 | 5,071 | |
Goodwill | 20,073 | 19,828 | |
Intangible assets, net | 9,710 | 10,037 | |
Deferred tax asset, net | 28,336 | 28,667 | |
Other assets | 4,547 | 13,949 | |
Total assets | 410,423 | 405,766 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable and accrued liabilities | 21,412 | 26,479 | |
Film rent payable | 8,952 | 10,528 | |
Debt – current portion | 587 | 567 | |
Taxes payable - current | 3,758 | 3,523 | |
Deferred current revenue | 9,791 | 10,758 | |
Other current liabilities | 11,978 | 14,131 | |
Total current liabilities | 56,478 | 65,986 | |
Debt – long-term portion | 120,829 | 115,707 | |
Subordinated debt | 27,393 | 27,340 | |
Noncurrent tax liabilities | 20,084 | 19,953 | |
Other liabilities | 30,648 | 30,165 | |
Total liabilities | 255,432 | 259,151 | |
Commitments and contingencies (Note 13) | |||
Stockholders' equity: | |||
Nonvoting preferred stock, par value $0.01, 12,000 shares authorized and no issued or outstanding shares at March 31, 2017 and December 31, 2016 | |||
Additional paid-in capital | 144,737 | 144,569 | |
Retained earnings | 4,709 | 1,680 | |
Treasury shares | (17,045) | (16,374) | |
Accumulated other comprehensive income | 17,936 | 12,075 | |
Total Reading International, Inc. stockholders' equity | 150,584 | 142,197 | |
Noncontrolling interests | 4,407 | 4,418 | |
Total stockholders' equity | 154,991 | 146,615 | |
Total liabilities and stockholders’ equity | 410,423 | 405,766 | |
Class A [Member] | |||
Stockholders' equity: | |||
Common stock | 230 | 230 | |
Class B [Member] | |||
Stockholders' equity: | |||
Common stock | $ 17 | $ 17 | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 12,000 | 12,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,903,825 | 32,856,267 |
Common stock, shares outstanding | 21,503,376 | 21,497,717 |
Class B [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 1,680,590 | 1,680,590 |
Common stock, shares outstanding | 1,680,590 | 1,680,590 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Revenue | ||||
Cinema | $ 66,560 | $ 61,315 | ||
Real estate | 2,894 | 3,474 | ||
Total revenue | 69,454 | 64,789 | ||
Costs and expenses | ||||
Cinema | (51,782) | (47,957) | ||
Real estate | (2,036) | (2,141) | ||
Depreciation and amortization | (3,934) | (3,808) | ||
General and administrative | (6,174) | (6,191) | ||
Total costs and expenses | (63,926) | (60,097) | ||
Operating income | 5,528 | 4,692 | ||
Interest income | 20 | 37 | ||
Interest expense | (1,880) | (1,912) | ||
Net gain on sale of assets | [1] | 393 | ||
Other income (expense) | 821 | (57) | ||
Income before income taxes and equity earnings of unconsolidated joint ventures | 4,489 | 3,153 | ||
Equity earnings of unconsolidated joint ventures | 255 | 302 | [1] | |
Income before income taxes | 4,744 | 3,455 | ||
Income tax expense | (1,703) | (1,231) | ||
Net income | 3,041 | 2,224 | [1] | |
Less: net income (loss) attributable to non-controlling interests | 12 | (2) | ||
Net income attributable to Reading International, Inc. common shareholders | $ 3,029 | $ 2,226 | ||
Basic earnings per share attributable to Reading International, Inc. shareholders | $ 0.13 | $ 0.10 | ||
Diluted earnings per share attributable to Reading International, Inc. shareholders | $ 0.13 | $ 0.09 | ||
Weighted average number of shares outstanding-basic | 23,168,351 | 23,334,892 | ||
Weighted average number of shares outstanding-diluted | 23,465,176 | 23,532,858 | ||
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $ 3,041 | $ 2,224 | [1] |
Foreign currency translation gain | 5,826 | 6,323 | |
Unrealized loss on available for sale investments | (4) | ||
Accrued pension service benefit | 52 | 32 | |
Comprehensive income | 8,915 | 8,579 | |
Less: net income (loss) attributable to non-controlling interests | 12 | (2) | |
Less: comprehensive loss attributable to noncontrolling interests | 13 | 16 | |
Comprehensive income attributable to Reading International, Inc. | $ 8,890 | $ 8,565 | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Operating Activities | ||||
Net income | $ 3,041 | $ 2,224 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity earnings of unconsolidated joint ventures | (255) | (302) | [1] | |
Distributions of earnings from unconsolidated joint ventures | 220 | 253 | [1] | |
Gain recognized on foreign currency transactions | (825) | |||
Net gain on sale of assets | [1] | (393) | ||
Change in net deferred tax assets | 577 | (631) | [1] | |
Depreciation and amortization | 3,934 | 3,808 | [1] | |
Amortization of actuarial loss | 532 | 405 | [1] | |
Stock based compensation expense | 166 | 143 | [1] | |
Net changes in operating assets and liabilities: | ||||
Receivables | 2,215 | (1,157) | [1] | |
Prepaid and other assets | (1,504) | 1,420 | [1] | |
Accounts payable and accrued expenses | (5,426) | (29) | [1] | |
Film rent payable | (1,710) | (220) | [1] | |
Taxes payable | 44 | 1,489 | [1] | |
Deferred revenue and other liabilities | (698) | (2,592) | [1] | |
Net cash provided by operating activities | 311 | 4,418 | [1] | |
Investing Activities | ||||
Demolition costs of Courtenay Central parking building | (2,458) | |||
Purchases of and additions to operating property | (8,478) | (4,184) | [1] | |
Change in restricted cash | 12 | 147 | [1] | |
Proceeds from sale of property | [1] | 831 | ||
Net cash used in investing activities | (10,924) | (3,206) | [1] | |
Financing Activities | ||||
Repayment of long-term borrowings | (12,875) | (6,847) | [1] | |
Proceeds from borrowings | 16,119 | 2,250 | [1] | |
Capitalized borrowing costs | [1] | (12) | ||
Repurchase of Class A Nonvoting Common Stock | (671) | |||
Proceeds from stock option exercises | 3 | |||
Noncontrolling interest contributions | 41 | |||
Noncontrolling interest distributions | (77) | (55) | [1] | |
Net cash provided by/(used in) financing activities | 2,540 | (4,664) | [1] | |
Effect of exchange rate on cash | 87 | 80 | [1] | |
Net decrease in cash and cash equivalents | (7,986) | (3,372) | [1] | |
Cash and cash equivalents at the beginning of the year | [1] | 19,017 | 19,702 | |
Cash and cash equivalents at the end of the year | 11,031 | 16,330 | [1] | |
Supplemental Disclosures | ||||
Interest paid | 1,658 | 1,453 | [1] | |
Income taxes paid, net | $ 1,408 | $ 188 | [1] | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Description Of Business And Seg
Description Of Business And Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Description Of Business And Segment Reporting [Abstract] | |
Description Of Business And Segment Reporting | Note 1 – Description of Business and Segment Reporting The Company Reading International, Inc., a Nevada corporation (“RDI” and collectively with our consolidated subsidiaries and corporate predecessors, the “Company,” “Reading” and “we,” “us,” or “our”), was incorporated in 1999, and, following the consummation of a consolidation transaction on December 31, 2001, is now the owner of the consolidated businesses and assets of Reading Entertainment, Inc. (“RDGE”), Craig Corporation (“CRG”) and Citadel Holding Corporation (“CDL”). Our businesses consist primarily of: · the development, ownership, and operation of multiplex cinemas in the United States, Australia, and New Zealand; and, · the development, ownership, and operation of retail and commercial real estate in Australia, New Zealand, and the United States. Business Segments Reported below are the operating segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer, the chief operating decision-maker of the Company. As part of our real estate activities, we have acquired, and continue to hold raw land in urban and suburban centers in Australia, New Zealand, and the United States. The tables below summarize the results of operations for each of our business segments for the three months ended March 31, 2017 and 2016 , respectively. Operating expense includes costs associated with the day-to-day operations of the cinemas and the management of rental properties, including our live theater assets. Three Months Ended (Dollars in thousands) March 31, 2017 March 31, 2016 Revenue: Cinema exhibition $ 66,560 $ 61,315 Real estate 4,497 5,250 Inter-segment elimination (1,603) (1,776) $ 69,454 $ 64,789 Segment operating income: Cinema exhibition $ 9,093 $ 7,690 Real estate 1,294 2,089 $ 10,387 $ 9,779 A reconciliation of segment operating income to income before income taxes is as follows: Three Months Ended (Dollars in thousands) March 31, 2017 March 31, 2016 Segment operating income $ 10,387 $ 9,779 Unallocated corporate expense Depreciation and amortization expense (106) (96) General and administrative expense (4,753) (4,991) Interest expense, net (1,860) (1,875) Equity earnings of unconsolidated joint ventures 255 302 Gain on sale of assets -- 393 Other income (expense) 821 (57) Income before income tax expense $ 4,744 $ 3,455 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries as well as majority-owned subsidiaries that the Company controls, and should be read in conjunction with the Company’s Annual Report on Form 10-K as of and for the year-ended December 31, 2016 (“2016 Form 10-K”). All significant intercompany balances and transactions have been eliminated in consolidation. These were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (“SEC”). As such, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. We believe that we have included all normal and recurring adjustments necessary for a fair presentation of the results for the interim period. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP that requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Significant estimates include (i) projections we make regarding the recoverability and impairment of our assets (including goodwill and intangibles), (ii) valuations of our derivative instruments, (iii) recoverability of our deferred tax assets and (iv) estimation of gift card and gift certificate breakage which we concluded to have remote likelihood of redemption. Actual results may differ from those estimates. Reclassifications Certain reclassifications have been made in the 2016 comparative information in the consolidated balance sheets, statement of cash flows and notes to conform to the 2017 presentation. These reclassifications relate to the following, for which we assessed to be allowable under Regulation S-X, Rule 10.01 due to immaterial balances: (i) reclassification of Investment in Reading International Trust I as part of “Other assets” line in our consolidated balance sheets; and, (ii) combination of certain amortization items in our consolidated statement of cash flows (under Operating Activities section) into one line, called “Other amortization”. Recently Adopted and Issued Accounting Pronouncements Adopted: On January 1, 2017, the Company adopted ASU 2016-09 , Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This new guidance, which became effective for fiscal years beginning after December 15, 2016, provided simplifications to several aspects of the accounting for share-based payment transactions, including (i) accounting for tax benefits in excess of compensation cost and tax deficiencies, (ii) accounting for forfeitures, and (iii) classification on the statement of cash flows. The significant impact of the adoption of this new guidance to us is the immediate recognition of excess tax benefits (or “windfalls”) and tax deficiencies (or “shortfalls”) in the consolidated statement of income. Previously, (i) tax windfalls were recorded in additional paid-in capital (“APIC”) in the consolidated statement of stockholder’s equity and (ii) tax shortfalls were recorded in APIC to the extent of previous windfalls and then to the consolidated statement of income. This simplification eliminated the administrative complexity of tracking the “windfall pool”. Issued: In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The amendments in this Update (i) require that an employer disaggregate the service cost component from the other components of net benefit cost, and (ii) provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. The new guidance is effective for the Company on January 1, 2018. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. As our existing pension annuity (replacing the supplemental executive retirement plan) for our now deceased former Chairman of the Board and Chief Executive Officer does not include any service cost component, we do not anticipate the adoption of ASU 2017-07 to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual, or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendment should be applied on a prospective basis. The new guidance is effective for the Company on January 1, 2020, including interim periods within the year of adoption. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not anticipate the adoption of ASU 2017-04 to have a material impact on our consolidated financial statements. Also, in January 2017, the FASB issued ASU 2017-01, Business Combination (Topic 805): Clarifying the Definition of a Business . This ASU provides additional guidance in regards evaluating whether a transaction should be treated as an asset acquisition (or disposal) or a business combination. Particularly, the amendments to this ASU provide that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This clarification reduces the number of transactions that needs further evaluation for business combination. This becomes effective for the Company on January 1, 2018. As there are no anticipated acquisitions for 2017, we do not anticipate the ASU 2017-01 to be applicable on our 2017 consolidated financial statements. Further, in January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings . This ASU incorporates into the Codification the SEC Staff announcements made at previous EITF meetings expressing its expectations about the extent of disclosures issuers should make about the effects of the recently issued FASB guidance (including any amendments issued prior to adoption) on (i) revenue from contract with customers (ASU 2016-13), (ii) leases (ASU 2016-02) and (iii) credit losses on financial instruments (ASU 2016-13) in accordance with Staff Accounting Bulletin (“SAB”) Topic 11.M. SAB 11.M requires issuers to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. ASU 2017-03 incorporates these SEC staff views into ASC 250 and adds references to that guidance in the transition paragraphs of each of the three new standards. In accordance with this disclosure requirement, we provide below our initial analysis of the impact of the following recently issued standards (including any amendments prior to adoption) that are effective in future periods: 1. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) – FASB issued this new guidance, which becomes effective to us and for which we plan to adopt by January 1, 2018, to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. GAAP. Under this new model, recognition of revenues occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new standard is required to be applied either: (i) retrospectively to each prior reporting period presented, or (ii) retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we fully determined the impact of this new standard on our consolidated financial statements. However, we believe the proposed guidance will not have a material impact to our cinema exhibition business given revenues from movie ticket and food and beverage sales are not contractually-driven (rather, based on published rates) and are principally collected in cash or credit cards at our theatre locations and through our online selling channels. In addition, the new standard requires that reporting companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. As a result, there might be incremental disclosures in our future filings once this guidance is adopted. We are in the process of completing an analysis to ensure full compliance prior to the effective date. In regards to ASUs subsequently issued that amends or are related to ASU 2014-09, we disclose our initial analysis as follows: · ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products (Subtopic 405-20) – FASB issued this new guidance on extinguishment of liabilities, which becomes effective to us and for which we plan to adopt by January 1, 2018, related to prepaid stored-value products (such as our gift cards and gift certificates) based on the same breakage model required by Topic 606, Revenue from Contracts with Customers. Accordingly, issuers will be required to recognize the expected breakage amount (i.e., derecognize the liability) either (1) proportionally in earnings as redemptions occur, or (2) when redemption is remote. While this guidance is not adopted until 2018, we have effectively applied this through our recording of the gift card breakage income as a change in accounting policy in our 2016 Form 10-K with retrospective application to January 1, 2014. As a result, the Company does not anticipate the adoption of ASU 2016-04 to have a material impact on the consolidated financial statements and related disclosures when it becomes effective in 2018. · ASU 2016 -08, Principal vs Agent Considerations (Reporting Revenue Gross versus Net) (Topic 606) – FASB issued this amendment to the principal versus agent guidance in the new revenue standard to clarify that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. If control is not certain, the reporting company would need to evaluate three indicators that control has been obtained before the entity transfers the goods or services to a customer: (a) entity is primary responsible for fulfilment, (b) entity has inventory risk before or after the good or service is transferred to the customer, and (c) entity has discretion to establish pricing. In regards our live theatre business, we provide administrative support, including collection of ticket sales, as part of our license agreement with the production companies. We recognize revenues on a weekly basis after performance of a show occurs based on fixed and variable fees (as a percentage of ticket sales) pursuant to such license agreement. Given our involvement is to provide only administrative support and control over the “performance of the show” to the ultimate customers (that is, the spectators) is held by the production companies, we believe we mainly act as an agent. Accordingly, reporting revenues net (that is, record only the fixed and variable fees per the license agreement rather than the gross collections) continues to be appropriate. 2. ASU 20 16-02, Leases (Topic 842) – This new guidance, which becomes effective to us and for which we plan to adopt by January 1, 2019, 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 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees with 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. While we are still evaluating the impact of our pending adoption of this new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material since a majority of our operating cinemas are on leased-facility model. We are in the process of developing an implementation plan and significant implementation matters yet to be addressed include (i) determination of appropriate discount rate to use and (ii) assessment of renewal options to include in the initial lease term. |
Operations In Foreign Currency
Operations In Foreign Currency | 3 Months Ended |
Mar. 31, 2017 | |
Operations In Foreign Currency [Abstract] | |
Operations In Foreign Currency | Note 3 – Operations in Foreign Currency We have significant assets in Australia and New Zealand. To the extent possible, we conduct our Australian and New Zealand operations (collectively “foreign operations”) on a self-funding basis where we use cash flows generated by our foreign operations to pay for the expense of foreign operations. Our Australian and New Zealand assets and liabilities are translated from their functional currencies of Australian dollar (“AU$”) and New Zealand dollar (“NZ$”), respectively, to the U.S. dollar based on the exchange rate as of March 31, 2017 . The carrying value of the assets and liabilities of our foreign operations fluctuates as a result of changes in the exchange rates between the functional currencies of the foreign operations and the U.S. dollar. The translation adjustments are accumulated in the Accumulated Other Comprehensive Income in the Consolidated Balance Sheets. As indicated previously, our overall operating strategy is to conduct business mostly on a self-funding basis (except for funds used to pay an appropriate share of our U.S. corporate overhead). As such, we do not use derivative financial instruments to hedge against the risk of foreign currency exposure. However, in certain circumstances, we may decide to move funds between jurisdictions where circumstances encouraged us to do so from an overall economic standpoint. As of December 31, 2016, we reassessed our assertion in regards intercompany advances from the U.S. Parent Company to our Australian subsidiary that we previously deemed to be of long-term investment in nature. Given the interest savings that will be generated from using funds through the repayments of intercompany loans by our Australian subsidiary to finance a portion of our Union Square redevelopment project rather than paying up for high interest mezzanine loans (which will yield overall notional all-in interest savings of approximately 10.0%), we changed our assertion for a portion of these intercompany loans to short-term. As a result, we recognized a gain of $825,000 representing the foreign currency movement on the intercompany advances based on the relative strengthening of the Australian dollar to the U.S. dollar for the quarter ended March 31, 2017. Presented in the table below are the currency exchange rates for Australia and New Zealand as of and for the period-ended March 31, 2017 , December 31, 2016 an d March 31, 2016: Foreign Currency / USD As of and for the Three Months Ended As of and for the Twelve Months Ended As of and for the Three Months Ended March 31, 2017 December 31, 2016 March 31, 2016 Spot Rate Australian Dollar 0.7638 0.7230 0.7677 New Zealand Dollar 0.7001 0.6958 0.6926 Average Rate Australian Dollar 0.7584 0.7440 0.7216 New Zealand Dollar 0.7122 0.6973 0.6637 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4 – Earnings Per Share Basic earnings per share (“EPS”) is calculated by dividing the net income attributable to the Company’s common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by dividing the net income attributable to the Company’s common stockholders by the weighted average number of common and common equivalent shares outstanding during the period and are calculated using the treasury stock method for equity-based compensation awards . The following table sets forth the computation of basic and diluted EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding: Three Months Ended (Dollars in thousands, except share data) March 31, 2017 March 31, 2016 Numerator: Net income attributable to RDI common stockholders $ 3,029 $ 2,226 Denominator: Weighted average number of common stock – basic 23,168,351 23,334,892 Weighted average dilutive impact of awards 296,825 197,966 Weighted average number of common stock – diluted 23,465,176 23,532,858 Basic EPS attributable to RDI common stockholders $ 0.13 $ 0.10 Diluted EPS attributable to RDI common stockholders $ 0.13 $ 0.09 Awards excluded from diluted EPS -- -- |
Property And Equipment
Property And Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property And Equipment [Abstract] | |
Property And Equipment | Note 5 – Property and Equipment Operating Property, net As of March 31, 2017 and December 31, 2016 , property associated with our operating activities is summarized as follows: March 31, December 31, (Dollars in thousands) 2017 2016 Land $ 75,577 $ 73,803 Building and improvements 127,273 122,863 Leasehold improvements 48,171 46,902 Fixtures and equipment 122,963 118,180 Construction-in-progress 11,805 11,517 Total cost 385,789 373,265 Less: accumulated depreciation (169,431) (161,379) Operating property, net $ 216,358 $ 211,886 Depreciation expense for operating property was both $3.5 million for the quarter ended March 31, 2017 and March 31, 2016 . Investment and Development Property As of March 31, 2017 and December 31, 2016 , our investment and development property is summarized below: March 31, December 31, (Dollars in thousands) 2017 2016 Land $ 24,791 $ 24,616 Building 1,900 1,900 Construction-in-progress (including capitalized interest) 23,540 17,171 Investment and development property $ 50,231 $ 43,687 Construction-in- P rogress – Operating and Investing P ropert ies Construction - in -P rogress balances are included in both our operating and development propert ies . The balances of our major projects along with the movements for the quarter ended March 31, 2017 are shown below: (Dollars in thousands) Balance, December 31, 2016 Additions during the quarter (1) Completed during the quarter Foreign currency movements Balance, March 31, 2017 Union Square development $11,412 $4,259 $ -- $15,671 Newmarket Property development 2,106 1,714 -- 131 $3,951 Courtenay Central development 3,510 232 -- 20 $3,762 Cinema developments and improvements 7,796 87 (959) 20 $6,944 Other real estate projects 3,864 1,461 (383) 75 $5,017 Total $28,688 $7,753 $ (1,342) $246 $35,345 ( 1 ) Includes capitalized interest of $155,000 for the quarter ended March 31, 2017 . Real E state T ransactions New Corporate Headquarters in Los Angeles On April 11, 2016, we purchased a 24,000 square foot office building with 72 parking spaces located at 5995 Sepulveda Boulevard in Culver City, California for $11.2 million. The terms and circumstances of this acquisition were not considered to meet the definition of a business combination in accordance with U.S. GAAP. We currently use approximately 50% of the leasable area for our headquarters offices and intend to lease, over time, the remainder to unaffiliated third parties. Sale of Landholding in Burwood, Australia On May 12, 2014, we entered into a contract to sell our undeveloped 50.6 acre parcel in Burwood, Victoria, Australia, to Australand Holdings Limited (now known as Frasers Property Australia) for a purchase price of $50.6 million ( AU$65.0 million). We received $5.9 million ( AU$6.5 million) on May 23, 2014. The remaining purchase price of $44.7 million ( AU$58.5 million) is due on December 31, 2017. The agreement provides for mandatory pre-payments in the event that any of the land is sold by the buyer, any such prepayment being in an amount equal to the greater of (a) 90% of the net sales price or (b) the balance of the purchase price multiplied by a fraction the numerator of which is the square footage of property being sold by the buyer and the denominator of which is the original square footage of the property being sold to the buyer. The agreement does not provide for the payment of interest on the balance owed. Our book value in the property is $39.8 million ( AU$52.1 million) and $37.7 million ( AU$52.1 million) as of March 31, 2017 and December 31, 2016 , respectively (the difference being attributable solely to currency fluctuations) . While the transaction was treated as a sale for tax purposes in 2014, it does not qualify as a sale under US GAAP until the receipt of the payment of the balance of the purchase price due on December 31, 2017 (or earlier depending upon whether any prepay ment obligation is triggered). The asset is classified as land held for sale (current) on our consolidated balance sheets both as of March 31, 2017 and December 31, 2016 . Sale of Properties in Taupo, New Zealand On April 1, 2015, we entered into two definitive purchase and sale agreements to sell our properties at Taupo, New Zealand for a combined sales price of $2.4 million (NZ $3.4 million). The first agreement related to a property with a sales price of $1.6 million (NZ $2.2 million) and a book value of $1.3 million (NZ $1.8 million), which closed on April 30, 2015 when we received the sales price in full. The other agreement related to a property with a sales price of $831,000 ( NZ$1.2 million) and a book value of $426,000 (NZ $615,000 ) which was completed and for which we received cash settlement representing the full sales price on March 31, 2016. The first transaction qualified as a sale under both U.S. GAAP and tax purposes during the year-ended December 31, 2015. The second transaction was recorded as a sale during the quarter ended March 31, 2016. |
Investments In Unconsolidated J
Investments In Unconsolidated Joint Ventures | 3 Months Ended |
Mar. 31, 2017 | |
Investments In Unconsolidated Joint Ventures [Abstract] | |
Investments In Unconsolidated Joint Ventures | Note 6 – Investments i n Unconsolidated Joint Ventures Our investments in unconsolidated joint ventures are accounted for under the equity method of accounting . Our investment in Rialto Distribution was fully written off since 2010 (refer to further discussion below) . The table below summarizes our investments in unconsolidated joint ventures as of March 31, 2017 and December 31, 2016 : March 31, December 31, (Dollars in thousands) Interest 2017 2016 Rialto Distribution 33.3% $ -- $ -- Rialto Cinemas 50.0% $ 1,173 $ 1,197 Mt. Gravatt 33.3% 4,086 3,874 Total investments $ 5,259 $ 5,071 For the three months ended March 31, 2017 and 2016 , we recorded our share of equity earnings from our investments in unconsolidated joint ventures as follows: Three Months Ended March 31, March 31, (Dollars in thousands) 2017 2016 Rialto Distribution $ -- $ -- Rialto Cinemas $ 39 $ 76 Mt. Gravatt 216 226 Total equity earnings $ 255 $ 302 Rialto Distribution Due to significant losses in years past, we determined that our investment in Rialto Distribution was fully impaired. As a result of these losses, as of January 1, 2010, we treat our interest as a cost method interest in an unconsolidated joint venture, and record income based on the distributions we receive. We have also fully provided for any losses that may result from the bank guarantee that had been given on behalf of Rialto Distribution (refer to Note 13 – Commitments and Contingencies – Debt Guarantee ) . |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets [Abstract] | |
Goodwill And Intangible Assets | Note 7 – Goodwill and Intangible Assets The table below summarizes goodwill by business segment as of March 31, 2017 and December 31, 2016 . (Dollars in thousands) Cinema Real Estate Total Balance at December 31, 2016 $ 14,604 $ 5,224 $ 19,828 Foreign currency translation adjustment 245 -- 245 Balance at March 31, 2017 $ 14,849 $ 5,224 $ 20,073 The Company is required to test goodwill and other intangible assets for impairment on an annual basis and, if current events or circumstances require, on an interim basis. Our next annual evaluation of goodwill and other intangible assets is scheduled for the fourth quarter of 201 7 . To test the impairment of goodwill, the Company compares the fair value of each reporting unit to its carrying amount, including the goodwill, to determine if there is potential goodwill impairment. A reporting unit is generally one level below the operating segment. As of March 31, 2017 , we were not aware of any events indicating potential impairment of goodwill had occurred. The tables below summarize intangible assets other than goodwill as of March 31, 2017 and December 31, 2016 , respectively. As of March 31, 2017 (Dollars in thousands) Beneficial Leases Trade Name Other Intangible Assets Total Gross carrying amount $ 28,797 $ 7,254 $ 1,085 $ 37,136 Less: Accumulated amortization (22,243) (4,710) (473) (27,426) Net intangible assets other than goodwill $ 6,554 $ 2,544 $ 612 $ 9,710 As of December 31, 2016 (Dollars in thousands) Beneficial Leases Trade Name Other Intangible Assets Total Gross carrying amount $ 28,671 $ 7,254 $ 1,084 $ 37,009 Less: Accumulated amortization (21,870) (4,634) (468) (26,972) Net intangible assets other than goodwill $ 6,801 $ 2,620 $ 616 $ 10,037 Beneficial leases are amortized ove r the life of the lease up to 30 years, trade names are amortized based on the accelerated amortization method over its estimated useful life of 45 years, and other intangible assets are amortized over their estimated useful lives of up to 30 years (except for transferrable liquor licenses, which are indefinite-lived assets). The table below summarizes the amortization expense of intangible assets for the quarter ended March 3 1 , 201 7 . Three Months Ended March 31, March 31, (Dollars in thousands) 2017 2016 Beneficial lease amortization $ 304 $ 365 Other amortization 102 96 Total intangible assets amortization $ 406 $ 461 |
Prepaid And Other Assets
Prepaid And Other Assets | 3 Months Ended |
Mar. 31, 2017 | |
Prepaid And Other Assets [Abstract] | |
Prepaid And Other Assets | Note 8 – Prepaid and Other Assets Prepaid and other assets are summarized as follows: March 31, December 31, (Dollars in thousands) 2017 2016 Prepaid and other current assets Insurance receivable (1) $ 9,839 $ -- Prepaid expenses 2,088 981 Prepaid taxes 3,042 3,098 Prepaid rent 1,616 1,237 Deposits 404 404 Investment in marketable securities 46 50 Restricted cash 17 17 Total prepaid and other current assets $ 17,052 $ 5,787 Other non-current assets Insurance receivable (1) $ -- $ 9,480 Other non-cinema and non-rental real estate assets 1,134 1,134 Investment in Reading International Trust I 838 838 Interest rate cap at fair value 10 1 Straight-line rent 2,537 2,457 Long-term deposits 28 39 Total other non-current assets $ 4,547 $ 13,949 (1) Refer to Note 18 – Insurance Recoverable for further discussion on this item. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 9 – Income Tax es The provision for income taxes is different from the amount determined by applying the U.S. federal statutory rate to consolidated income before taxes. The differences are attributable to earnings considered indefinitely reinvested in foreign operations, change in valuation allowance, state taxes, unrecognized tax benefits, and foreign withholding tax on interest. Our effective tax rate was 35.9% and 35.6% for the three months ended March 31, 2017 and 2016, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt [Abstract] | |
Debt | Note 10 – Debt The Company’s borrowings at March 31, 2017 and December 31, 2016 , net of deferred financing costs and including the impact of interest rate derivatives on effective interest rates, are summarized below: As of March 31, 2017 (Dollars in thousands) Maturity Date Contractual Facility Balance, Gross Balance, Net (3) Stated Interest Rate Effective Interest Rate (1) Denominated in USD Trust Preferred Securities (USA) April 30, 2027 $ 27,913 $ 27,913 $ 27,393 5.04% 5.20% Bank of America Credit Facility (USA) November 28, 2019 55,000 39,000 38,866 3.48% 3.65% Bank of America Line of Credit (USA) October 31, 2019 5,000 1,000 1,000 3.98% 3.98% Cinema 1, 2, 3 Term Loan (USA) September 1, 2019 19,800 19,800 19,293 3.25% 3.25% Minetta & Orpheum Theatres Loan (USA) June 1, 2018 7,500 7,500 7,416 3.56% 3.56% U.S. Corporate Office Term Loan (USA) January 1, 2027 8,333 8,333 8,212 4.64% 4.64% Union Square Construction Financing (USA) December 29, 2019 57,500 8,000 4,942 5.24% 5.24% Denominated in foreign currency ("FC") (2) NAB Corporate Term Loan (AU) June 28, 2019 50,793 31,316 31,185 2.63% 2.63% Westpac Corporate Credit Facility (NZ) December 31, 2018 37,105 10,502 10,502 3.70% 3.70% $ 268,944 153,364 148,809 (1) Effective interest rate includes the impact of interest rate derivatives hedging the interest rate risk associated with Trust Preferred Securities and Bank of America Credit Facility that were outstanding as of March 31, 2017 . (2) The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on the applicable exchange rates as of March 31, 2017 . (3) Net of deferred financing costs amounting to $4.6 million. (4) The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building , was obtained with Citizens Asset Finance, Inc. during the fourth quarter of 2016. In December 2016, we successfully negotiated the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million . As of December 31, 2016 (Dollars in thousands) Maturity Date Contractual Facility Balance, Gross Balance, Net (3) Stated Interest Rate Effective Interest Rate (1) Denominated in USD Trust Preferred Securities (USA) April 30, 2027 $ 27,913 $ 27,913 $ 27,340 4.89% 5.20% Bank of America Credit Facility (USA) November 28, 2019 55,000 39,950 39,759 3.27% 3.90% Bank of America Line of Credit (USA) October 31, 2019 5,000 -- -- 3.77% 3.77% Cinema 1, 2, 3 Term Loan (USA) (4) September 1, 2019 19,901 19,901 19,356 3.25% 3.25% Minetta & Orpheum Theatres Loan (USA) (4) June 1, 2018 7,500 7,500 7,398 3.38% 3.38% U.S. Corporate Office Term Loan (USA) (4) January 1, 2027 8,363 8,363 8,239 4.64% 4.64% Union Square Construction Financing (USA) (4) December 29, 2019 57,500 8,000 4,751 4.52% 4.52% Denominated in FC (2) NAB Corporate Term Loan (AU) June 30, 2019 48,080 28,558 28,421 2.64% 2.64% Westpac Corporate Credit Facility (NZ) March 31, 2018 36,877 8,350 8,350 3.80% 3.80% $ 266,134 $ 148,535 $ 143,614 (1) Effective interest rate includes the impact of interest rate derivatives hedging the interest rate risk associated with Trust Preferred Securities and Bank of America Credit Facility that were outstanding as of December 31, 2016. (2) The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on the applicable exchange rates as of December 31, 2016. (3) Net of deferred financing costs amounting to $4.9 million. (4) The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building , was obtained with Citizens Asset Finance, Inc. during the fourth quarter of 2016. In December 2016, we successfully negotiated the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million . Union Square Construction Financing On December 29, 2016, we closed our new construction finance facilities totaling $57.5 million to fund the non-equity portion of the anticipated construction costs of the redevelopment of our property at 44 Union Square in New York City. The combined facilities consist of $50 million in aggregate loans (comprised of three loan tranches) from Bank of the Ozarks (“BOTO”), and a $7.5 million mezzanine loan from Tammany Mezz Investor, LLC, an affiliate of Fisher Brothers. As of December 31, 2016, BOTO advanced $8.0 million to repay the existing $8.0 million loan with East West Bank. Presented in the table below is the breakdown of the Union Square construction financing as of March 31, 2017: (Dollars in thousands) Facility Limits and Advances Financing Component Lender Facility Limit Advanced-to- Date Remaining Facility Interest Rate (1) Maturity Date (2) Mezzanine loan Tammany Mezz Investor LLC $ 7,500 $ -- $ 7,500 Greater of (i) 10.50% and (ii) Adjusted LIBOR + 10% December 29, 2019 Senior loan Bank of the Ozarks 8,000 8,000 -- Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25% December 29, 2019 Building loan Bank of the Ozarks 31,130 -- 31,130 Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25% December 29, 2019 Project loan Bank of the Ozarks 10,870 -- 10,870 Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25% December 29, 2019 Total Union Square Financing $ 57,500 $ 8,000 $ 49,500 (1) Not to exceed the New York State maximum lawful borrowing rate, which typically is 16% . (2) Allowable for up to two (2) extension request options, one (1) year for each extension request. Cinema 1,2,3 Term Loan On August 31, 2016, Sutton Hill Properties LLC (“SHP”), a 75% subsidiary of RDI , refinanced its $15 million Santander Bank term loan with a different lender, Valley National Bank. This new $20 million loan is collateralized by our Cinema 1,2,3 property and bears an interest rate of 3.25% per annum, with principal installments and accruing interest paid monthly. The new loan matures on September 1, 2019 , with a one-time option to extend maturity date for another year. Bank of America Credit Facility On March 3, 2016, we amended our $55.0 million credit facility with Bank of America to permit real property acquisition loans. This amendment was subject to the provision that the consolidated leverage ratio would be reduced by 0.25% from the established levels in the credit facility during the period of such borrowing subject further to a repayment of such borrowings on the earlier of the eighteen months from the date of such borrowing or the maturity date of the credit agreement. Such modification was not considered substantial in accordance with U . S . GAAP. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 11 – Other Liabilities Other liabilities are summarized as follows: (Dollars in thousands) March 31, 2017 December 31, 2016 Current liabilities Liability for demolition costs $ 3,534 $ 5,914 Lease liability $ 5,900 $ 5,900 Accrued pension 2,394 2,223 Security deposit payable 87 77 Other 63 17 Other current liabilities $ 11,978 $ 14,131 Other liabilities Straight-line rent liability $ 12,556 $ 12,413 Accrued pension 5,606 5,732 Lease make-good provision 5,363 5,146 Deferred revenue - real estate 4,716 4,398 Environmental reserve 1,656 1,656 Interest rate swap 4 58 Acquired leases 250 267 Other 497 495 Other liabilities $ 30,648 $ 30,165 On August 29, 2014, the Supplemental Executive Retirement Plan (“SERP”) that was effective since March 1, 2007, was ended and replaced with a new pension annuity. As a result of the termination of the SERP program, the accrued pension liability of $7.6 million was reversed and replaced with a new pension annuity liability of $7.5 million. The valuation of the liability is based on the present value of $10.2 million discounted at a rate of 4.25% over a 15 - year term, resulting in a monthly payment of $57,000 payable to the Cotter Estate or Cotter Trust (as defined herein). The discount rate of 4.25% has been applied since 2014 to determine the net periodic benefit cost and plan benefit obligation and is expected to be used in future years. The discounted value of $2.7 million (which is the difference between the estimated payout of $10.2 million and the present value of $7.5 million) as of August 29, 2014 will be amortized and expensed based on the 15-year term. In addition, the accumulated actuarial loss of $3.1 million recorded, as part of other comprehensive income will also be amortized based on the 15 - year term. As a result of the above, included in our current and non-current liabilities are accrued pension costs of $8.0 million at March 31, 2017 . The benefits of our pension plans are fully vested and therefore no service costs were recognized for the three months ended March 31, 2017 and 2016 . Our pension plans are unfunded. During the three months ended March 31, 2017 , the interest cost was $45,000 , and actuarial loss was $52,000 . During the three months ended March 31, 2016 , the interest cost was $45,000 , and actuarial loss was $32,000 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 12 – Accumulated Other Comprehensive Income The following table summarizes the changes in each component of accumulated other comprehensive income attributable to RDI: (Dollars in thousands) Foreign Currency Items Unrealized Gain (Losses) on Available-for-Sale Investments Accrued Pension Service Costs Total Balance at January 1, 2017 $ 14,784 $ 10 $ (2,719) $ 12,075 Net current-period other comprehensive income 5,813 (4) 52 5,861 Balance at March 31, 2017 $ 20,597 $ 6 $ (2,667) $ 17,936 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 13 – Commitments and Contingencies Debt Guarantee The total estimated debt of unconsolidated joint ventures, consisting solely of Rialto Distribution (see Note 6 – Investments in Unconsolidated Joint Ventures ), was $1.1 million (NZ$ 1.5 million ) as of March 31, 2017 and $1.0 million ( NZ$1.5 million) as of December 31, 2016 . Our share of the unconsolidated debt, based on our ownership percentage, was NZ$500,000 as of March 31, 2017 and December 31, 2016 , respectively. This debt is guaranteed by one of our subsidiaries to the extent of our proportionate ownership. Based on the financial position of Rialto Distribution and in consideration of this debt guarantee, we accrued $350,000 ( NZ$500,000 ) and $348,000 ( NZ$500,000 ) as of March 3 1 , 201 7 and December 31, 201 6 , recorded as part of Accounts payable and accrued liabilities. Litigation Derivative Litigation and James J. Cotter, Jr. Employment Arbitration On June 12, 2015, the Board of Directors terminated James J. Cotter, Jr. as the President and Chief Executive Officer of our Company. That same day, Mr. Cotter, Jr. filed a lawsuit, styled as both an individual and a derivative action, and titled “ James J. Cotter, Jr., individually and derivatively on behalf of Reading International, Inc. vs. Margaret Cotter, et al.” Case No,: A-15-719860-V, Dept XI, against our Company and each of our then sitting Directors (Ellen Cotter, Margaret Cotter, Guy Adams, William Gould, Edward Kane, Douglas McEachern, and Tim Storey) in the Eighth Judicial District Court of the State of Nevada for Clark County (the “Nevada District Court”). Since that date, our Company has been engaged in ongoing litigation with Mr. Cotter, Jr. with respect to his claims against our Directors. Mr. Cotter, Jr. has over this period of time twice amended his complaint, removing his individual claims and withdrawing his claims against Tim Storey (but reserving the right to reinstitute such claims), adding claims relating to actions taken by our Board since the filing of his original complaint and adding as defendants two of our directors who were not on our Board at the time of his termination: Judy Codding and Michael Wrotniak. Mr. Cotter, Jr.’s lawsuit, as amended from time to time, is referred to herein as the “Cotter Jr. Derivative Action” and his complaint, as amended from time to time, is referred to herein as the “Cotter Jr. Derivative Complaint.” The defendant directors named in the Cotter Jr. Derivative Complaint, from time to time, are referred to herein as the “Defendant Directors.” The Cotter Jr. Derivative Complaint alleges among other things, that the Defendant Directors breached their fiduciary duties to the Company by terminating Mr. Cotter, Jr. as President and Chief Executive Officer, continuing to make use of the Executive Committee that has been in place for more than the past ten years (but which no longer includes Mr. Cotter, Jr. as a member), making allegedly potentially misleading statements in our Company’s press releases and filings with the Securities and Exchange Commission (the “SEC”), paying certain compensation to Ellen Cotter, allowing the Cotter Estate to make use of Class A Common Stock to pay for the exercise of certain long outstanding stock options to acquire 100,000 shares of Class B Common Stock held of record by the Cotter Estate and determined by the Nevada District Court to be assets of the Cotter Estate, and allowing Ellen Cotter and Margaret Cotter to vote the 100,000 shares of Class B Common Stock issued upon the exercise of such options, appointing Ellen Cotter as President and Chief Executive Officer, appointing Margaret Cotter as Executive Vice President, and the wa y in which the Board handled an unsolicited indication of interest made by a third party to acquire all of the stock of our Company. In the lawsuit, Mr. Cotter, Jr. seeks reinstatement as President and CEO, a declaration that Ellen Cotter and Margaret Cotter may not vote the above referenced 100,000 shares of Class B Stock, and alleges as damages fluctuations in the price for our Company’s shares after the announcement of his termination as President and CEO and certain unspecified damages to our Company’s reputation. In addition, our Company is in arbitration with Mr. Cotter, Jr. (Reading International, Inc. v. James J. Cotter, AAA Case No. 01-15-0004-2384, filed July 2015)( the “Cotter Jr. Employment Arbitration”) seeking declaratory relief and defending cl aims asserted by Mr. Cotter, Jr . On January 20, 2017, Mr. Cotter Jr. filed a First Amended Counter-Complaint which includes claims of breach of contract, contractual indemnification, retaliation, wrongful termination in violation of California Labor Code Section 1102.5, wrongful discharge, and violations of California Code of Procedure Section 1060 based on allegations of unlawful and unfair conduct. Mr. Cotter, Jr. seeks compensatory damages estimated by his counsel at more than $1.2 million, plus unquantified special and punitive damages, penalties, interest and attorney’s fees. On April 9, 2017, the Arbitrator granted without leave to amend the Company’s motion to dismiss Mr. Cotter, Jr.’s claims for retaliation, violation of labor code § 1102.5 and wrongful discharge in violation of public policy. Mr. Cotter, Jr. also brought a direct action in the Nevada District Court ( James J. Cotter, Jr. v. Reading International, Inc, a Nevada corporation; Does 1-100 and Roe Entities, 1-100, inclusive, Case No. A-16-735305-B ) seeking advancement of attorney’s fees incurred in the Cotter Jr. Employment Arbitrati on. Summary judgment was entered against Mr. Cotter, Jr. with respect to that direct action on October 3, 2016. For a period of approximately 12 months, between August 6, 2015 and August 4, 2016, our Company and our directors other than Mr. Cotter, Jr. were subject to a derivative lawsuit filed in the Nevada District Court captioned T2 Partners Management, LP, a Delaware limited partnership, doing business as Kase Capital Management; T2 Accredited Fund, LP, a Delaware limited partnership, doing business as Kase Fund; T2 Qualified Fund, LP, a Delaware limited partnership, doing business as Kase Qualified Fund; Tilson Offshore Fund, Ltd, a Cayman Islands exempted company; T2 Partners Management I, LLC, a Delaware limited liability company, doing business as Kase Management; T2 Partners Management Group, LLC, a Delaware limited liability company, doing business as Kase Group; JMG Capital Management, LLC, a Delaware limited liability company, Pacific Capital Management, LLC, a Delaware limited liability company (the “T2 Plaintiffs), derivatively on behalf of Reading International, Inc. vs. Margaret Cotter, Ellen Cotter, Guy Adams, Edward Kane, Douglas McEachern, Timothy Storey, William Gould and Does 1 through 100, inclusive, as defendants, and, Reading International, Inc., a Nevada corporation, as Nominal Defendant. That complaint was subsequently amended (as amended the “T2 Derivative Complaint”) to add as defendants Directors Judy Codding and Michael Wrotniak (collectively with the directors initially named the “T2 Defendant Directors”) and S. Craig Tompkins, our Company’s legal counsel (collectively with the T2 Defendant Directors, the “T2 Defendants”). The T2 Derivative Action was settled pursuant to a Settlement Agreement between the parties dated August 4, 2016, which as modified was approved by the Nevada District Court on October 6, 2016. The District Court’s Order provided for the dismissal with prejudice of all claims contained in the T2 Plaintiffs’ First Amended Complaint and provide that each side would be responsible for its own attorneys’ fees. In the joint press release issued by our Company and the T2 Plaintiffs on July 13, 2016, representatives of the T2 Plaintiffs stated as follows: "We are pleased with the conclusions reached by our investigations as Plaintiff Stockholders and now firmly believe that the Reading Board of Directors has and will continue to protect stockholder interests and will continue to work to maximize shareholder value over the long-term. We appreciate the Company's willingness to engage in open dialogue and are excited about the Company's prospects. Our questions about the termination of James Cotter, Jr., and various transactions between Reading and members of the Cotter family-or entities they control-have been definitively addressed and put to rest. We are impressed by measures the Reading Board has made over the past year to further strengthen corporate governance. We fully support the Reading Board and management team and their strategy to create stockholder value.” The T2 Plaintiffs alleged in their T2 Derivative Complaint various violations of fiduciary duty, abuse of control, gross mismanagement and corporate waste by the T2 Defendant Directors. More specifically the T2 Derivative Complaint sought the reinstatement of James J. Cotter, Jr. as President and Chief Executive Officer, an order setting aside the election results from the 2015 Annual Meeting of Stockholders, based on an allegation that Ellen Cotter and Margaret Cotter were not entitled to vote the shares of Class B Common Stock held by the Cotter Estate and the Cotter Trust, and certain monetary damages, as well as equitable injunctive relief, attorney fees and costs of suit. In May 2016, the T2 Plaintiffs unsuccessfully sought a preliminary injunction (1) enjoining the Inspector of Elections from counting at our 2016 Annual Meeting of Stockholders any proxies purporting to vote either the 327,808 Class B shares held of record by the Cotter Estate or the 696,080 Class B shares held of record by the Cotter Trust, and (2) enjoining Ellen Cotter, Margaret Cotter and James J. Cotter, Jr. from voting the above referenced shares at the 2016 Annual Meeting of Stockholders. This request for preliminary injunctive relief was denied by the Nevada District Court after a hearing on May 26, 2016. With respect to the Cotter, Jr. Derivative Action, discovery is substantially complete. However, due to the pendency of various appeals to the Nevada Supreme Court, no trial date has been calendared. On September 15, 2016, Mr. Cotter, Jr. filed a writ with the Nevada Supreme Court seeking a determination that the Nevada District Court erred in its determination that, by communicating his thoughts about the Cotter Jr. Derivate Action with counsel for the T2 Plaintiffs without any confidentiality or joint representation agreement, Mr. Cotter, Jr’s counsel waived any attorney work product privilege that might otherwise have been applicable to such communication. The Company is of the view that any privilege was waived by the unprotected communication of such thoughts to a third party such as counsel to the T2 Plaintiffs. On March 23, 2017, the Nevada Supreme Court set oral argument on the matter for the next available calendar. On February 14, 2017 the Company filed a writ with the Nevada Supreme Court seeking a determination that the Nevada District Court erred in its decision to allow Mr. Cotter, Jr. access to certain communications between the Defendant Directors and Company counsel, which the Defendant Directors and our Company believe to be subject to the attorney-client communication privilege. Certain of the Defendant Directors joined in this writ. The Nevada Supreme Court has discretion in deciding whether to consider the writ, and the Company expects the Court to decide whether to consider the writ in the near future . Activities in the Cotter Jr. Derivative Action, other than certain limited discovery, have been suspended pending determination of the above referenced writs. No assurances can be given as to how or when the Nevada Supreme Court will rule on the writs. At the present time, we believe that it unlikely that the issues set forth in the writs will be resolved in the near term . The Cotter Jr., Employment Arbitration is also in the discovery phase. Our Company is and was legally obligated to cover the costs and expenses incurred by our Defendant Directors in defending the Cotter Jr. Derivative Action and the T2 Derivative Action. Furthermore, although in a derivative action, the stockholder plaintiff seeks damages or other relief for the benefit of the Company, and not for the stockholder plaintiff’s individual benefit and, accordingly, the Company is, at least in theory, only a nominal defendant, as a practical matter, because Mr. Cotter, Jr. is also seeking, among other things, an order that our Board’s determination to terminate Mr. Cotter Jr. was ineffective and that he be reinstated as the President and CEO of our Company and also limiting the use of our Board’s Executive Committee, and as he asserts potentially misleading statements in certain press releases and filings with the SEC, our Company is also incurring on its own account significant cost and expense defending the decision to terminate Mr. Cotter, Jr. as President and Chief Executive Officer, its board committee structure, and the adequacy of those press releases and filings, in addition to its costs incurred in responding to discovery demands and satisfying indemnity obligations to the Defendant Directors. Likewise, in connection with the T2 Derivative Action, our Company incurred substantial costs defending claims related to the defense of claims relating to the termination of Mr. Cotter, Jr., opposing his reinstatement, and defending the conduct of its annual meetings. Cost incurred in the Cotter Jr. Employment Arbitration and in the defense of the Cotter Jr. Attorney’s fees case were direct costs of our Company. The Directors and Officer’s Insurance Policy, in the amount of $10 million, being used to cover a portion of the costs of defending the Cotter Jr. Derivative Action, has been exhausted. The Company is now covering the defense costs of the Defendant Directors, in addition to its own costs incurred in connection with the Cotter Jr. Derivative Action . During the first quarter, costs incurred with respect to the Cotter, Jr. Derivative Action and the Employment Arbitration aggregated $645,000 . The STOMP Arbitration In April 2015, Liberty Theatres, LLC (“Liberty”), a wholly owned subsidiary of the Company, commenced an American Arbitration Association arbitration proceeding (Case No.:01-15-0003-3728) against The Stomp Company Limited Partnership (“Stomp”), the producer of the show STOMP, in response to Stomp’s purported termination of their license agreement with Liberty relating to such show. STOMP has been playing at our Orpheum Theatre in New York City for 20 years and still continues to play to date. Liberty sought specific performance, injunctive and declaratory relief and damages. Stomp counterclaimed for unspecified damages, alleging that Liberty has interfered with the Stomp’s endeavors to move the show to another Off-Broadway theater. Stomp based its purported termination of the license agreement upon the alleged deficient condition of the Orpheum Theater. On December 18, 2015, the Arbitrator issued his Partial Final Award of Arbitration, providing for, among other things (i) the issuance of a permanent injunction prohibiting Stomp from “transferring or taking actions to market, promote, or otherwise facilitate any transfer of, STOMP to another theatre in New York City having fewer than 500 seats without Liberty’s prior written consent”, (ii) the Stomp’s Notice of Termination purportedly terminating the parties’ license agreement was invalid, null and void and the License Agreement remains in full force and effect, and (iii) the award to Liberty of its reasonable attorneys’ fees in an amount to be determined by the Arbitrator. In explaining his decision to award Liberty its reasonable attorneys’ fees, the Arbitrator stated as follows: “Liberty is entitled to such an award [of attorneys’ fees] not only because it is the prevailing party in this proceeding, but because [the Producer] unfairly disparaged the Orpheum and caused Liberty to incur attorneys’ fees in order to address and resolve [the Producer’s] groundless and frivolous allegations with respect to the Orpheum’s condition, Liberty’s performance under the License Agreement, and Stomp’s reasons for seeking to transfer STOMP to a larger theatre.” In April 2016, we received a Final Award in our arbitration with Stomp. The Final Award awards us $2.3 million in attorney’s fees and costs. In September 2016, the parties agreed on the payment terms of the Final Award (“Payment Agreement”), on a basis that is intended to allow recovery by Liberty of the entire Final Award (plus interest at 4% ), while at the same time allowing the show to continue playing at our Orpheum Theater. Under the Payment Agreement, Stomp paid a total of $475,000 through March 31, 2017 , and the remaining amount to be paid over time, with final payment due and payable in June 2019 . We have filed a judgment of the arbitral award against Stomp with the New York Supreme Court to protect Liberty in the event Stomp defaults on the Payment Agreement. STOMP continues to play at our Orpheum Theater under a license agreement that was amended by the Payment Agreement. |
Non-controlling Interests
Non-controlling Interests | 3 Months Ended |
Mar. 31, 2017 | |
Non-controlling Interests [Abstract] | |
Non-controlling Interests | Note 14 – Non-controlling Interests These are composed of the following enterprises: · Australia Country Cinemas Pty Ltd. -- 25% noncontrolling interest owned by Panorama Cinemas for the 21st Century Pty Ltd.; · Shadow View Land and Farming, LLC -- 50% noncontrolling membership interest owned by either the estate of Mr. James J. Cotter, Sr. (the “Cotter Estate”) or the James J. Cotter, Sr. Living Trust (the “Cotter Trust”) ; and, · Sutton Hill Properties, LLC -- 25% noncontrolling interest owned by Sutton Hill Capital, LLC (which in turn is 50% owned by Cotter Estate and/or the Cotter Trust ). The components of noncontrolling interests are as follows: March 31, December 31, (Dollars in thousands) 2017 2016 Australian Country Cinemas, Pty Ltd $ 244 $ 264 Shadow View Land and Farming, LLC 2,005 1,980 Sutton Hill Properties, LLC 2,158 2,174 Noncontrolling interests in consolidated subsidiaries $ 4,407 $ 4,418 The components of income /(loss) attributable to noncontrolling interests are as follows: Three Months Ended March 31, March 31, (Dollars in thousands) 2017 2016 Australian Country Cinemas, Pty Ltd $ 44 $ 34 Shadow View Land and Farming, LLC (16) (10) Sutton Hill Properties, LLC (16) (26) Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries $ 12 $ (2) Summary of Controlling and Noncontrolling Stockholders’ Equity A summary of the changes in controlling and noncontrolling stockholders’ equity is as follows: (Dollars in thousands) Controlling Stockholders’ Equity Noncontrolling Stockholders’ Equity Total Stockholders’ Equity Equity at January 1, 2017 $ 142,197 $ 4,418 $ 146,615 Net income 3,029 12 3,041 Increase in additional paid in capital 169 -- 169 Treasury stock purchased (672) -- (672) Contributions from noncontrolling stockholders - SHP -- 41 41 Distributions to noncontrolling stockholders -- (77) (77) Accumulated other comprehensive income 5,861 13 5,874 Equity at March 31, 2017 $ 150,584 $ 4,407 $ 154,991 (Dollars in thousands) Controlling Stockholders’ Equity Noncontrolling Stockholders’ Equity Total Stockholders’ Equity Equity at January 1, 2016 $ 132,865 $ 4,331 $ 137,196 Net income (loss) 2,226 (2) 2,224 Increase in additional paid in capital 143 -- 143 Distributions to noncontrolling stockholders -- (55) (55) Accumulated other comprehensive loss 6,340 16 6,356 Equity at March 31, 2016 $ 141,574 $ 4,290 $ 145,864 |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Repurchases | 3 Months Ended |
Mar. 31, 2017 | |
Stock-Based Compensation and Stock Repurchases [Abstract] | |
Stock-Based Compensation and Stock Repurchases | Note 15 – Stock-Based Compensation and Stock Repurchases Employee and Director Stock Option Plan The Company may grant stock options and other share-based payment awards of our Class A Stock to eligible employees, directors, and consultants under the 2010 Stock Incentive Plan (the “Plan”). The aggregate total number of shares of the Class A Nonvoting Common Stock authorized for issuance under the Plan is 1,250,000 . Since the adoption of the Plan in 2010, the Company has granted awards primarily in the form of stock options. In the 1 st quarter of 2016, the Company started to award restricted stock units (“RSUs”) to directors and certain members of management. Stock options are generally granted at exercise prices equal to the grant-date market prices and typically expire no later than five years from the grant date. In contrast to a stock option where the grantee buys the Company’s share at an exercise price determined on grant date, an RSU entitles the grantee to receive one share for every RSU based on a vesting plan. At the discretion of our Compensation and Stock Options Committee, the vesting period of stock options and RSUs granted to employees ranges from zero to four years. Grants to directors and certain executive officers are subject to Board approval. At the time the options are exercised or RSUs vest, at the discretion of management, we will issue treasury shares or make a new issuance of shares to the option or RSU holder. Stock Options We estimate the grant-date fair value of our stock options using the Black-Scholes option-valuation model, which takes into account assumptions such as the dividend yield, the risk-free interest rate, the expected stock price volatility, and the expected life of the options. We expense the estimated grant-date fair values of options over the vesting period on a straight-line basis. Based on our historical experience , the “deemed exercise” of expiring in-the-money options and the relative market price to strike price of the options, we have not hereto estimated any forfeitures of vested or unvested options. For the three months ended March 31, 2017 and 2016 , respectively, the weighted average assumptions used in the option-valuation model were as follows: Three Months Ended March 31 2017 2016 Stock option exercise price $ 15.97 $ 11.83 Risk-free interest rate 1.68% 1.24% Expected dividend yield -- -- Expected option life in years 3.75 3.75 Expected volatility 24.92% 24.94% Weighted average fair value $ 3.46 $ 2.48 For the three months ended March 30, 2017 and 2016 , we recorded compensation expense of $53,000 and $98,000 . At March 31, 2017 , the total unrecognized estimated compensation expense related to non-vested stock options was $1.1 million, which we expect to recognize over a weighted average vesting period of 2.20 years. The intrinsic, unrealized value of all options outstanding, vested and expected to vest, at March 31, 2017 was $3.6 million, of which 81.7% are currently exercisable. The following table summarizes the information of options outstanding and exercisable as of March 31, 2017 and December 31, 2016 : Outstanding Stock Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Years of Contractual Aggregate Intrinsic Value Class A Class A Class A Class A Balance - December 31, 2015 486,565 $ 8.68 2.89 $ 2,188,011 Granted 169,327 11.87 Exercised (46,815) 9.50 $ 220,002 Forfeited (74,000) 7.02 Balance - December 31, 2016 535,077 $ 9.84 2.61 $ 3,615,191 Granted 149,841 15.97 Exercised (10,500) 8.25 $ 91,020 Forfeited (2,500) 6.23 Balance - March 31, 2017 671,918 $ 11.25 1.88 $ 3,608,972 Restricted Stock Units We estimate the grant-date fair values of our RSUs using the Company’s stock price at grant-date and record such fair values as compensation expense over the vesting period on a straight-line basis. The following table summarizes the status of the RSUs granted to-date as of March 31, 2017: Outstanding Restricted Stock Units RSU Grants (in units) Total Vested, Unvested, Grant Date Directors Management Grants March 31, 2017 March 31, 2017 March 10, 2016 35,147 27,381 62,528 41,993 20,535 April 11, 2016 -- 5,625 5,625 -- 5,625 March 23, 2017 30,681 32,463 63,144 -- 63,144 Total 65,828 65,469 131,297 41,993 89,304 These RSU awards vest 25% at the end of each year for 4 years (in the case of members of management) and vest 100% on the first business day of the year following in which such RSUs were granted (in the case of directors). During the three months ended March 31, 2017 and 2016 , we recognized compensation expense of $120,000 and $31,000 , respectively . The total unrecognized compensation expense related to the unvested RSUs was $1.3 million as of March 31, 2017. Stock Repurchase Plan On March 2, 2017, the Company's Board of Directors authorized management, at its discretion, to spend up to an aggregate of $25.0 million to acquire shares of Reading’s Non-Voting Common Stock. The previously approved stock repurchase program, which allowed management to spend up to an aggregate of $10.0 million to acquire shares of Reading’s Non-Voting Common Stock, was fully spent as of December 31, 2016. The repurchase program allows Reading to repurchase its shares in accordance with the requirements of the SEC on the open market, in block trades and in privately negotiated transactions, depending on market conditions and other factors. All purchases are subject to the availability of shares at prices that are acceptable to Reading, and accordingly, no assurances can be given as to the timing or number of shares that may ultimately be acquired pursuant to this authorization. Under this approved stock repurchase program, the Company has reacquired $671,000 worth of common stock at an average price of $15.99 per share (excluding transaction costs) during March 2017. This leaves $24.3 million available under the March 2, 2017 program for repurchase as of March 31, 2017. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 16 – Derivative Instruments We enter into interest rate derivative instruments to hedge the interest rate risk that results from the characteristics of our floating-rate borrowings. Our use of derivative transactions is intended to reduce long-term fluctuations in cash flows caused by market movements. All derivative instruments are recorded on the balance sheet at fair value with changes in fair value through interest expense in the Consolidated Statement of Income . As of March 31, 2017 , we have not designated any of our derivatives as accounting hedges. The Company’s derivative positions measured at fair value are summarized in the following tables: As of March 31, 2017 (Dollars in thousands) Hedged Exposure Notional Other Assets Other Current Liabilities Interest rate swap Interest rate variability - Bank of America Credit Facility $ 21,000 $ - $ 4 Interest rate swap Interest rate variability - Trust Preferred Debt Securities 27,913 10 - Interest rate cap Interest rate variability - Mezzanine loan tranche of Union Square construction financing 7,500 - - Interest rate cap Interest rate variability - Minetta and Orpheum Theatres Term Loan 7,500 - - Total $ 63,913 $ 10 $ 4 As of December 31, 2016 (Dollars in thousands) Hedged Exposure Notional Other Assets Other Current Liabilities Interest rate swap Interest rate variability - Bank of America Credit Facility $ 21,000 $ - $ 40 Interest rate swap Interest rate variability - Trust Preferred Debt Securities 27,913 - 18 Interest rate cap Interest rate variability - Mezzanine loan tranche of Union Square construction financing 7,500 1 - Interest rate cap Interest rate variability - Minetta and Orpheum Theatres Term Loan 7,500 - - Total $ 63,913 $ 1 $ 58 The following table summarizes the unrealized gains or losses due to changes in fair value of the derivatives that are recorded in interest expense in the Consolidated Statement of Income for the three months ended March 31, 2017 and March 31, 2016 . Three Months Ended (Dollars in thousands) March 31, 2017 March 31, 2016 Net unrealized income/(losses) on interest rate derivatives $ 63 $ (219) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 17 – Fair Value Measurements ASC 820, Fair Value Measurement establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: · Level 1: Quoted market prices in active markets for identical assets or liabilities ; · Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets ; and, · Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable . The following tables summarize our financial assets and financial liabilities carried and measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 , by level within the fair value hierarchy. Fair Value Measurement at March 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Investments $ 46 $ - $ - $ 46 Derivatives - 10 - 10 Liabilities Derivatives - (4) - (4) Total recorded at fair value $ 46 $ 6 $ - $ 52 Fair Value Measurement at December 31, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Investments $ 49 $ - $ - $ 49 Derivatives - 1 - 1 Liabilities Derivatives - (58) (58) Total recorded at fair value $ 49 $ (57) $ - $ (8) The following tables summarize our financial liabilities that are carried at cost and measured at fair value on a non-recurring basis as of March 31, 2017 and December 31, 2016 , by level within the fair value hierarchy. Fair Value Measurement at March 31, 2017 (Dollars in thousands) Carrying Value (1) Level 1 Level 2 Level 3 Total Notes payable $ 125,451 $ - $ - $ 126,176 $ 126,176 Subordinated debt 27,913 - - 15,461 15,461 $ 153,364 $ - $ - $ 141,637 $ 141,637 Fair Value Measurement at December 31, 2016 (Dollars in thousands) Carrying Value (1) Level 1 Level 2 Level 3 Total Notes payable $ 120,622 $ - $ - $ 121,204 $ 121,204 Subordinated debt 27,913 - - 15,247 15,247 $ 148,535 $ - $ - $ 136,451 $ 136,451 (1) These balances are presented before any deduction for deferred financing costs. Following is a description of the valuation methodologies used to estimate the fair value of our financial assets and liabilities. There have been no changes in the methodologies used at March 31, 2017 and December 31, 2016 . · Level 1 investments in marketable securities primarily consist of investments associated with the ownership of marketable securities in U.S. and New Zealand. These investments are valued based on observable market quotes on the last trading date of the reporting period. · Level 2 derivative financial instruments are valued based on discounted cash flow models that incorporate observable inputs such as interest rates and yield curves from the derivative counterparties. The credit valuation adjustments associated with our non-performance risk and counterparty credit risk are incorporated in the fair value estimates of our derivatives. As of March 31, 2017 and December 31, 2016 , we concluded that the credit valuation adjustments were not significant to the overall valuation of our derivatives. · Level 3 borrowings include our secured and unsecured notes payable, trust preferred securities and other debt instruments. The borrowings are valued based on discounted cash flow models that incorporate appropriate market discount rates. We calculated the market discount rate by obtaining period-end treasury rates for fixed-rate debt, or LIBOR for variable-rate debt, for maturities that correspond to the maturities of our debt, adding appropriate credit spreads derived from information obtained from third-party financial institutions. These credit spreads take into account factors such as our credit rate, debt maturity, types of borrowings, and the loan-to-value ratios of the debt. The Company’s financial instruments also include cash, cash equivalents, receivables and account payable. The carrying values of these financial instruments approximate the fair values due to their short maturities . Additionally, there were no transfers of assets and liabilities between levels 1, 2, or 3 during the three months ended March 31, 2017 and March 31, 2016 . |
Insurance Recoverable
Insurance Recoverable | 3 Months Ended |
Mar. 31, 2017 | |
Insurance Recoverable [Abstract] | |
Insurance Recoverable | N ote 18 – Insurance Recoverable We have filed an insurance claim with our Insurer with respect to earthquake damage to our parking building adjacent to our Courtenay Central entertainment-themed center (“ETC”) in Wellington, New Zealand and to Courtenay Central itself. Our accounting policy allows us to record a recoverable asset (to the extent of incurred losses) only when we determined that the collectability is deemed probable. We have concluded that the total incurred losses, consisting of the (i) written down carrying value of the damaged parking building and (ii) a significant portion of the derivative loss contingencies on demolition activities, to have probable likelihood of recovery. The table below provides the determination of the recoverable amounts under our insurance claim: Determination of Insurance Recoverable (mainly New Zealand Dollars in thousands, unless otherwise noted) December 31, 2016 (5) Changes in Estimate March 31, 2017 (5) Written down value of parking building (1) NZ $ 13,451 NZ $ 347 NZ $ 13,798 Estimated demolition costs and others (2) 7,276 82 7,358 Total expected incurred losses 20,727 429 21,156 Less: advance payment from Insurer (3)(4) (7,103) -- (7,103) Insurance Recoverable for Incurred Losses (in local currency) NZ $ 13,624 NZ $ 429 NZ $ 14,053 Insurance Recoverable for Incurred Losses (in U.S. Dollars) (4) US $ 9,480 US $ 306 US $ 9,839 (1) Recorded land value was excluded in the impairment determination. (2) $ 306 ,000 (NZ$ 429,000 ) represents changes in our initial estimates for demolition costs, which are allowable to be recorded in the period of change. Also, this amount included legal costs incurred during the insurance claim process which are reimbursable under our insurance policy. (3) This represents the advance claims settlement from the Insurer of $5.0 million (NZ$7.1 million). (4) In line with our standard translation policy, balance sheet items were translated into U.S. dollars based on the spot exchange rate as of March 31, 2017 and December 31, 2016, while the impact on our statement of income was translated using the average exchange rate for the current quarter . ( 5 ) T he insurance recoverable of $9.5 million (NZ$13.6 million) as of December 31, 2016 was presented as part of “ Other non-current assets ” as the timing of the insurance claim receipt is not fixed nor reliably determinable at the time of issuance of the 2016 Form 10-K. Subsequently, we reclassified the insurance recoverable of $9.8 million (NZ$14.1 million) as of March 31, 2017 to a current asset category as part of “ Prepaid and other current assets ” based on latest developments on our insurance claim , where we expect to receive the final settlement in less than a year . Refer to further details in Note 19 – Subsequent Events . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 19 – Subsequent Events Term Extension of Westpac Bank Corporate Credit Facility On April 26, 2017, we extended the maturity of the 1 st tranche (general/non-construction credit line) of our Westpac Corporate Credit Facility, $24.5 million ( NZ$35.0 million) to December 31, 2018, from March 31, 2018 . During 2017, we will work on a longer-term renewal of our Westpac Corporate Credit Facility which will replace the current facility. Updates to our Insurance Claim regarding our Courtenay Central Parking Building Earthquake Damage (Wellington, New Zealand) In April 2017, our Insurer completed examination of our insurance claim with respect to the parking building earthquake damage and related business interruption, and informed us that a final settlement of US$20.0 million (which would bring total recovery to US$25.0 million) may be received during the 2 nd quarter of 2017. |
Summary Of Significant Accoun26
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Consolidation | Basis of Consolidation The accompanying consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries as well as majority-owned subsidiaries that the Company controls, and should be read in conjunction with the Company’s Annual Report on Form 10-K as of and for the year-ended December 31, 2016 (“2016 Form 10-K”). All significant intercompany balances and transactions have been eliminated in consolidation. These were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (“SEC”). As such, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. We believe that we have included all normal and recurring adjustments necessary for a fair presentation of the results for the interim period. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. |
Use Of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP that requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and footnotes thereto. Significant estimates include (i) projections we make regarding the recoverability and impairment of our assets (including goodwill and intangibles), (ii) valuations of our derivative instruments, (iii) recoverability of our deferred tax assets and (iv) estimation of gift card and gift certificate breakage which we concluded to have remote likelihood of redemption. Actual results may differ from those estimates. |
Reclassifications | Reclassifications Certain reclassifications have been made in the 2016 comparative information in the consolidated balance sheets, statement of cash flows and notes to conform to the 2017 presentation. These reclassifications relate to the following, for which we assessed to be allowable under Regulation S-X, Rule 10.01 due to immaterial balances: (i) reclassification of Investment in Reading International Trust I as part of “Other assets” line in our consolidated balance sheets; and, (ii) combination of certain amortization items in our consolidated statement of cash flows (under Operating Activities section) into one line, called “Other amortization”. |
Recently Adopted And Issued Accounting Pronouncements | Recently Adopted and Issued Accounting Pronouncements Adopted: On January 1, 2017, the Company adopted ASU 2016-09 , Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This new guidance, which became effective for fiscal years beginning after December 15, 2016, provided simplifications to several aspects of the accounting for share-based payment transactions, including (i) accounting for tax benefits in excess of compensation cost and tax deficiencies, (ii) accounting for forfeitures, and (iii) classification on the statement of cash flows. The significant impact of the adoption of this new guidance to us is the immediate recognition of excess tax benefits (or “windfalls”) and tax deficiencies (or “shortfalls”) in the consolidated statement of income. Previously, (i) tax windfalls were recorded in additional paid-in capital (“APIC”) in the consolidated statement of stockholder’s equity and (ii) tax shortfalls were recorded in APIC to the extent of previous windfalls and then to the consolidated statement of income. This simplification eliminated the administrative complexity of tracking the “windfall pool”. Issued: In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The amendments in this Update (i) require that an employer disaggregate the service cost component from the other components of net benefit cost, and (ii) provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. The new guidance is effective for the Company on January 1, 2018. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. As our existing pension annuity (replacing the supplemental executive retirement plan) for our now deceased former Chairman of the Board and Chief Executive Officer does not include any service cost component, we do not anticipate the adoption of ASU 2017-07 to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual, or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendment should be applied on a prospective basis. The new guidance is effective for the Company on January 1, 2020, including interim periods within the year of adoption. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not anticipate the adoption of ASU 2017-04 to have a material impact on our consolidated financial statements. Also, in January 2017, the FASB issued ASU 2017-01, Business Combination (Topic 805): Clarifying the Definition of a Business . This ASU provides additional guidance in regards evaluating whether a transaction should be treated as an asset acquisition (or disposal) or a business combination. Particularly, the amendments to this ASU provide that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This clarification reduces the number of transactions that needs further evaluation for business combination. This becomes effective for the Company on January 1, 2018. As there are no anticipated acquisitions for 2017, we do not anticipate the ASU 2017-01 to be applicable on our 2017 consolidated financial statements. Further, in January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings . This ASU incorporates into the Codification the SEC Staff announcements made at previous EITF meetings expressing its expectations about the extent of disclosures issuers should make about the effects of the recently issued FASB guidance (including any amendments issued prior to adoption) on (i) revenue from contract with customers (ASU 2016-13), (ii) leases (ASU 2016-02) and (iii) credit losses on financial instruments (ASU 2016-13) in accordance with Staff Accounting Bulletin (“SAB”) Topic 11.M. SAB 11.M requires issuers to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. ASU 2017-03 incorporates these SEC staff views into ASC 250 and adds references to that guidance in the transition paragraphs of each of the three new standards. In accordance with this disclosure requirement, we provide below our initial analysis of the impact of the following recently issued standards (including any amendments prior to adoption) that are effective in future periods: 1. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) – FASB issued this new guidance, which becomes effective to us and for which we plan to adopt by January 1, 2018, to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. GAAP. Under this new model, recognition of revenues occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new standard is required to be applied either: (i) retrospectively to each prior reporting period presented, or (ii) retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we fully determined the impact of this new standard on our consolidated financial statements. However, we believe the proposed guidance will not have a material impact to our cinema exhibition business given revenues from movie ticket and food and beverage sales are not contractually-driven (rather, based on published rates) and are principally collected in cash or credit cards at our theatre locations and through our online selling channels. In addition, the new standard requires that reporting companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. As a result, there might be incremental disclosures in our future filings once this guidance is adopted. We are in the process of completing an analysis to ensure full compliance prior to the effective date. In regards to ASUs subsequently issued that amends or are related to ASU 2014-09, we disclose our initial analysis as follows: · ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products (Subtopic 405-20) – FASB issued this new guidance on extinguishment of liabilities, which becomes effective to us and for which we plan to adopt by January 1, 2018, related to prepaid stored-value products (such as our gift cards and gift certificates) based on the same breakage model required by Topic 606, Revenue from Contracts with Customers. Accordingly, issuers will be required to recognize the expected breakage amount (i.e., derecognize the liability) either (1) proportionally in earnings as redemptions occur, or (2) when redemption is remote. While this guidance is not adopted until 2018, we have effectively applied this through our recording of the gift card breakage income as a change in accounting policy in our 2016 Form 10-K with retrospective application to January 1, 2014. As a result, the Company does not anticipate the adoption of ASU 2016-04 to have a material impact on the consolidated financial statements and related disclosures when it becomes effective in 2018. · ASU 2016 -08, Principal vs Agent Considerations (Reporting Revenue Gross versus Net) (Topic 606) – FASB issued this amendment to the principal versus agent guidance in the new revenue standard to clarify that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. If control is not certain, the reporting company would need to evaluate three indicators that control has been obtained before the entity transfers the goods or services to a customer: (a) entity is primary responsible for fulfilment, (b) entity has inventory risk before or after the good or service is transferred to the customer, and (c) entity has discretion to establish pricing. In regards our live theatre business, we provide administrative support, including collection of ticket sales, as part of our license agreement with the production companies. We recognize revenues on a weekly basis after performance of a show occurs based on fixed and variable fees (as a percentage of ticket sales) pursuant to such license agreement. Given our involvement is to provide only administrative support and control over the “performance of the show” to the ultimate customers (that is, the spectators) is held by the production companies, we believe we mainly act as an agent. Accordingly, reporting revenues net (that is, record only the fixed and variable fees per the license agreement rather than the gross collections) continues to be appropriate. 2. ASU 20 16-02, Leases (Topic 842) – This new guidance, which becomes effective to us and for which we plan to adopt by January 1, 2019, 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 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees with 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. While we are still evaluating the impact of our pending adoption of this new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material since a majority of our operating cinemas are on leased-facility model. We are in the process of developing an implementation plan and significant implementation matters yet to be addressed include (i) determination of appropriate discount rate to use and (ii) assessment of renewal options to include in the initial lease term. |
Description Of Business And S27
Description Of Business And Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Description Of Business And Segment Reporting [Abstract] | |
Summary Of Results Of Operations For Principal Business Segments | Three Months Ended (Dollars in thousands) March 31, 2017 March 31, 2016 Revenue: Cinema exhibition $ 66,560 $ 61,315 Real estate 4,497 5,250 Inter-segment elimination (1,603) (1,776) $ 69,454 $ 64,789 Segment operating income: Cinema exhibition $ 9,093 $ 7,690 Real estate 1,294 2,089 $ 10,387 $ 9,779 |
Reconciliation To Net Income Attributable To Common Shareholders | Three Months Ended (Dollars in thousands) March 31, 2017 March 31, 2016 Segment operating income $ 10,387 $ 9,779 Unallocated corporate expense Depreciation and amortization expense (106) (96) General and administrative expense (4,753) (4,991) Interest expense, net (1,860) (1,875) Equity earnings of unconsolidated joint ventures 255 302 Gain on sale of assets -- 393 Other income (expense) 821 (57) Income before income tax expense $ 4,744 $ 3,455 |
Operations In Foreign Currency
Operations In Foreign Currency (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Operations In Foreign Currency [Abstract] | |
Summary Of Currency Exchange Rates | Foreign Currency / USD As of and for the Three Months Ended As of and for the Twelve Months Ended As of and for the Three Months Ended March 31, 2017 December 31, 2016 March 31, 2016 Spot Rate Australian Dollar 0.7638 0.7230 0.7677 New Zealand Dollar 0.7001 0.6958 0.6926 Average Rate Australian Dollar 0.7584 0.7440 0.7216 New Zealand Dollar 0.7122 0.6973 0.6637 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Dilutes Earnings Per Share | Three Months Ended (Dollars in thousands, except share data) March 31, 2017 March 31, 2016 Numerator: Net income attributable to RDI common stockholders $ 3,029 $ 2,226 Denominator: Weighted average number of common stock – basic 23,168,351 23,334,892 Weighted average dilutive impact of awards 296,825 197,966 Weighted average number of common stock – diluted 23,465,176 23,532,858 Basic EPS attributable to RDI common stockholders $ 0.13 $ 0.10 Diluted EPS attributable to RDI common stockholders $ 0.13 $ 0.09 Awards excluded from diluted EPS -- -- |
Property And Equipment (Tables)
Property And Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | March 31, December 31, (Dollars in thousands) 2017 2016 Land $ 75,577 $ 73,803 Building and improvements 127,273 122,863 Leasehold improvements 48,171 46,902 Fixtures and equipment 122,963 118,180 Construction-in-progress 11,805 11,517 Total cost 385,789 373,265 Less: accumulated depreciation (169,431) (161,379) Operating property, net $ 216,358 $ 211,886 |
Summary Of Investment And Development Property | March 31, December 31, (Dollars in thousands) 2017 2016 Land $ 24,791 $ 24,616 Building 1,900 1,900 Construction-in-progress (including capitalized interest) 23,540 17,171 Investment and development property $ 50,231 $ 43,687 |
Construction-In-Progress Balance | (Dollars in thousands) Balance, December 31, 2016 Additions during the quarter (1) Completed during the quarter Foreign currency movements Balance, March 31, 2017 Union Square development $11,412 $4,259 $ -- $15,671 Newmarket Property development 2,106 1,714 -- 131 $3,951 Courtenay Central development 3,510 232 -- 20 $3,762 Cinema developments and improvements 7,796 87 (959) 20 $6,944 Other real estate projects 3,864 1,461 (383) 75 $5,017 Total $28,688 $7,753 $ (1,342) $246 $35,345 ( 1 ) Includes capitalized interest of $155,000 for the quarter ended March 31, 2017 . |
Investments In Unconsolidated31
Investments In Unconsolidated Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments In Unconsolidated Joint Ventures [Abstract] | |
Summary Of The Investments In Unconsolidated Joint Ventures And Entities | March 31, December 31, (Dollars in thousands) Interest 2017 2016 Rialto Distribution 33.3% $ -- $ -- Rialto Cinemas 50.0% $ 1,173 $ 1,197 Mt. Gravatt 33.3% 4,086 3,874 Total investments $ 5,259 $ 5,071 |
Summary Of Equity Earnings (Loss) From Investments In Unconsolidated Joint Ventures And Entities | Three Months Ended March 31, March 31, (Dollars in thousands) 2017 2016 Rialto Distribution $ -- $ -- Rialto Cinemas $ 39 $ 76 Mt. Gravatt 216 226 Total equity earnings $ 255 $ 302 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets [Abstract] | |
Summary Of Goodwill | (Dollars in thousands) Cinema Real Estate Total Balance at December 31, 2016 $ 14,604 $ 5,224 $ 19,828 Foreign currency translation adjustment 245 -- 245 Balance at March 31, 2017 $ 14,849 $ 5,224 $ 20,073 |
Summary Of Intangible Assets Other Than Goodwill | As of March 31, 2017 (Dollars in thousands) Beneficial Leases Trade Name Other Intangible Assets Total Gross carrying amount $ 28,797 $ 7,254 $ 1,085 $ 37,136 Less: Accumulated amortization (22,243) (4,710) (473) (27,426) Net intangible assets other than goodwill $ 6,554 $ 2,544 $ 612 $ 9,710 As of December 31, 2016 (Dollars in thousands) Beneficial Leases Trade Name Other Intangible Assets Total Gross carrying amount $ 28,671 $ 7,254 $ 1,084 $ 37,009 Less: Accumulated amortization (21,870) (4,634) (468) (26,972) Net intangible assets other than goodwill $ 6,801 $ 2,620 $ 616 $ 10,037 |
Summary Of Amortization Expense | Three Months Ended March 31, March 31, (Dollars in thousands) 2017 2016 Beneficial lease amortization $ 304 $ 365 Other amortization 102 96 Total intangible assets amortization $ 406 $ 461 |
Prepaid And Other Assets (Table
Prepaid And Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Prepaid And Other Assets [Abstract] | |
Summary Of Prepaid And Other Assets | March 31, December 31, (Dollars in thousands) 2017 2016 Prepaid and other current assets Insurance receivable (1) $ 9,839 $ -- Prepaid expenses 2,088 981 Prepaid taxes 3,042 3,098 Prepaid rent 1,616 1,237 Deposits 404 404 Investment in marketable securities 46 50 Restricted cash 17 17 Total prepaid and other current assets $ 17,052 $ 5,787 Other non-current assets Insurance receivable (1) $ -- $ 9,480 Other non-cinema and non-rental real estate assets 1,134 1,134 Investment in Reading International Trust I 838 838 Interest rate cap at fair value 10 1 Straight-line rent 2,537 2,457 Long-term deposits 28 39 Total other non-current assets $ 4,547 $ 13,949 (1) Refer to Note 18 – Insurance Recoverable for further discussion on this item. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt [Abstract] | |
Summary Of Notes Payable | As of March 31, 2017 (Dollars in thousands) Maturity Date Contractual Facility Balance, Gross Balance, Net (3) Stated Interest Rate Effective Interest Rate (1) Denominated in USD Trust Preferred Securities (USA) April 30, 2027 $ 27,913 $ 27,913 $ 27,393 5.04% 5.20% Bank of America Credit Facility (USA) November 28, 2019 55,000 39,000 38,866 3.48% 3.65% Bank of America Line of Credit (USA) October 31, 2019 5,000 1,000 1,000 3.98% 3.98% Cinema 1, 2, 3 Term Loan (USA) September 1, 2019 19,800 19,800 19,293 3.25% 3.25% Minetta & Orpheum Theatres Loan (USA) June 1, 2018 7,500 7,500 7,416 3.56% 3.56% U.S. Corporate Office Term Loan (USA) January 1, 2027 8,333 8,333 8,212 4.64% 4.64% Union Square Construction Financing (USA) December 29, 2019 57,500 8,000 4,942 5.24% 5.24% Denominated in foreign currency ("FC") (2) NAB Corporate Term Loan (AU) June 28, 2019 50,793 31,316 31,185 2.63% 2.63% Westpac Corporate Credit Facility (NZ) December 31, 2018 37,105 10,502 10,502 3.70% 3.70% $ 268,944 153,364 148,809 (1) Effective interest rate includes the impact of interest rate derivatives hedging the interest rate risk associated with Trust Preferred Securities and Bank of America Credit Facility that were outstanding as of March 31, 2017 . (2) The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on the applicable exchange rates as of March 31, 2017 . (3) Net of deferred financing costs amounting to $4.6 million. (4) The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building , was obtained with Citizens Asset Finance, Inc. during the fourth quarter of 2016. In December 2016, we successfully negotiated the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million . As of December 31, 2016 (Dollars in thousands) Maturity Date Contractual Facility Balance, Gross Balance, Net (3) Stated Interest Rate Effective Interest Rate (1) Denominated in USD Trust Preferred Securities (USA) April 30, 2027 $ 27,913 $ 27,913 $ 27,340 4.89% 5.20% Bank of America Credit Facility (USA) November 28, 2019 55,000 39,950 39,759 3.27% 3.90% Bank of America Line of Credit (USA) October 31, 2019 5,000 -- -- 3.77% 3.77% Cinema 1, 2, 3 Term Loan (USA) (4) September 1, 2019 19,901 19,901 19,356 3.25% 3.25% Minetta & Orpheum Theatres Loan (USA) (4) June 1, 2018 7,500 7,500 7,398 3.38% 3.38% U.S. Corporate Office Term Loan (USA) (4) January 1, 2027 8,363 8,363 8,239 4.64% 4.64% Union Square Construction Financing (USA) (4) December 29, 2019 57,500 8,000 4,751 4.52% 4.52% Denominated in FC (2) NAB Corporate Term Loan (AU) June 30, 2019 48,080 28,558 28,421 2.64% 2.64% Westpac Corporate Credit Facility (NZ) March 31, 2018 36,877 8,350 8,350 3.80% 3.80% $ 266,134 $ 148,535 $ 143,614 (1) Effective interest rate includes the impact of interest rate derivatives hedging the interest rate risk associated with Trust Preferred Securities and Bank of America Credit Facility that were outstanding as of December 31, 2016. (2) The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on the applicable exchange rates as of December 31, 2016. (3) Net of deferred financing costs amounting to $4.9 million. (4) The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building , was obtained with Citizens Asset Finance, Inc. during the fourth quarter of 2016. In December 2016, we successfully negotiated the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million . |
Schedule Of Construction Financing | (Dollars in thousands) Facility Limits and Advances Financing Component Lender Facility Limit Advanced-to- Date Remaining Facility Interest Rate (1) Maturity Date (2) Mezzanine loan Tammany Mezz Investor LLC $ 7,500 $ -- $ 7,500 Greater of (i) 10.50% and (ii) Adjusted LIBOR + 10% December 29, 2019 Senior loan Bank of the Ozarks 8,000 8,000 -- Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25% December 29, 2019 Building loan Bank of the Ozarks 31,130 -- 31,130 Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25% December 29, 2019 Project loan Bank of the Ozarks 10,870 -- 10,870 Greater of (i) 4.75% and (ii) Adjusted LIBOR + 4.25% December 29, 2019 Total Union Square Financing $ 57,500 $ 8,000 $ 49,500 (1) Not to exceed the New York State maximum lawful borrowing rate, which typically is 16% . (2) Allowable for up to two (2) extension request options, one (1) year for each extension request. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities [Abstract] | |
Summary Of Other Liabilities Including Pension | (Dollars in thousands) March 31, 2017 December 31, 2016 Current liabilities Liability for demolition costs $ 3,534 $ 5,914 Lease liability $ 5,900 $ 5,900 Accrued pension 2,394 2,223 Security deposit payable 87 77 Other 63 17 Other current liabilities $ 11,978 $ 14,131 Other liabilities Straight-line rent liability $ 12,556 $ 12,413 Accrued pension 5,606 5,732 Lease make-good provision 5,363 5,146 Deferred revenue - real estate 4,716 4,398 Environmental reserve 1,656 1,656 Interest rate swap 4 58 Acquired leases 250 267 Other 497 495 Other liabilities $ 30,648 $ 30,165 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Summary Of Accumulated Other Comprehensive Income | (Dollars in thousands) Foreign Currency Items Unrealized Gain (Losses) on Available-for-Sale Investments Accrued Pension Service Costs Total Balance at January 1, 2017 $ 14,784 $ 10 $ (2,719) $ 12,075 Net current-period other comprehensive income 5,813 (4) 52 5,861 Balance at March 31, 2017 $ 20,597 $ 6 $ (2,667) $ 17,936 |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Non-controlling Interests [Abstract] | |
Components Of Non-controlling Interests | March 31, December 31, (Dollars in thousands) 2017 2016 Australian Country Cinemas, Pty Ltd $ 244 $ 264 Shadow View Land and Farming, LLC 2,005 1,980 Sutton Hill Properties, LLC 2,158 2,174 Noncontrolling interests in consolidated subsidiaries $ 4,407 $ 4,418 |
Components Of Income/(Loss) Attributable To Non-controlling Interest | Three Months Ended March 31, March 31, (Dollars in thousands) 2017 2016 Australian Country Cinemas, Pty Ltd $ 44 $ 34 Shadow View Land and Farming, LLC (16) (10) Sutton Hill Properties, LLC (16) (26) Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries $ 12 $ (2) |
Summary Of Changes In Controlling And Non-controlling Stockholders’ Equity | (Dollars in thousands) Controlling Stockholders’ Equity Noncontrolling Stockholders’ Equity Total Stockholders’ Equity Equity at January 1, 2017 $ 142,197 $ 4,418 $ 146,615 Net income 3,029 12 3,041 Increase in additional paid in capital 169 -- 169 Treasury stock purchased (672) -- (672) Contributions from noncontrolling stockholders - SHP -- 41 41 Distributions to noncontrolling stockholders -- (77) (77) Accumulated other comprehensive income 5,861 13 5,874 Equity at March 31, 2017 $ 150,584 $ 4,407 $ 154,991 (Dollars in thousands) Controlling Stockholders’ Equity Noncontrolling Stockholders’ Equity Total Stockholders’ Equity Equity at January 1, 2016 $ 132,865 $ 4,331 $ 137,196 Net income (loss) 2,226 (2) 2,224 Increase in additional paid in capital 143 -- 143 Distributions to noncontrolling stockholders -- (55) (55) Accumulated other comprehensive loss 6,340 16 6,356 Equity at March 31, 2016 $ 141,574 $ 4,290 $ 145,864 |
Stock-Based Compensation and 38
Stock-Based Compensation and Stock Repurchases (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stock-Based Compensation and Stock Repurchases [Abstract] | |
Schedule Of Fair Value Of Options, Weighted Average Assumptions | Three Months Ended March 31 2017 2016 Stock option exercise price $ 15.97 $ 11.83 Risk-free interest rate 1.68% 1.24% Expected dividend yield -- -- Expected option life in years 3.75 3.75 Expected volatility 24.92% 24.94% Weighted average fair value $ 3.46 $ 2.48 |
Schedule Of Stock Options Outstanding And Exercisable | Outstanding Stock Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Years of Contractual Aggregate Intrinsic Value Class A Class A Class A Class A Balance - December 31, 2015 486,565 $ 8.68 2.89 $ 2,188,011 Granted 169,327 11.87 Exercised (46,815) 9.50 $ 220,002 Forfeited (74,000) 7.02 Balance - December 31, 2016 535,077 $ 9.84 2.61 $ 3,615,191 Granted 149,841 15.97 Exercised (10,500) 8.25 $ 91,020 Forfeited (2,500) 6.23 Balance - March 31, 2017 671,918 $ 11.25 1.88 $ 3,608,972 |
Summary Of Restricted Stock Units Granted | Outstanding Restricted Stock Units RSU Grants (in units) Total Vested, Unvested, Grant Date Directors Management Grants March 31, 2017 March 31, 2017 March 10, 2016 35,147 27,381 62,528 41,993 20,535 April 11, 2016 -- 5,625 5,625 -- 5,625 March 23, 2017 30,681 32,463 63,144 -- 63,144 Total 65,828 65,469 131,297 41,993 89,304 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments [Abstract] | |
Set Forth Terms Of Interest Rate Swap And Cap Derivative Instruments | As of March 31, 2017 (Dollars in thousands) Hedged Exposure Notional Other Assets Other Current Liabilities Interest rate swap Interest rate variability - Bank of America Credit Facility $ 21,000 $ - $ 4 Interest rate swap Interest rate variability - Trust Preferred Debt Securities 27,913 10 - Interest rate cap Interest rate variability - Mezzanine loan tranche of Union Square construction financing 7,500 - - Interest rate cap Interest rate variability - Minetta and Orpheum Theatres Term Loan 7,500 - - Total $ 63,913 $ 10 $ 4 As of December 31, 2016 (Dollars in thousands) Hedged Exposure Notional Other Assets Other Current Liabilities Interest rate swap Interest rate variability - Bank of America Credit Facility $ 21,000 $ - $ 40 Interest rate swap Interest rate variability - Trust Preferred Debt Securities 27,913 - 18 Interest rate cap Interest rate variability - Mezzanine loan tranche of Union Square construction financing 7,500 1 - Interest rate cap Interest rate variability - Minetta and Orpheum Theatres Term Loan 7,500 - - Total $ 63,913 $ 1 $ 58 |
Summary Of Unrealized Gains/Losses In The Financial Statement | Three Months Ended (Dollars in thousands) March 31, 2017 March 31, 2016 Net unrealized income/(losses) on interest rate derivatives $ 63 $ (219) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Schedule Of Assets and Liabilities Carried and Measured At Fair Value | Fair Value Measurement at March 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Investments $ 46 $ - $ - $ 46 Derivatives - 10 - 10 Liabilities Derivatives - (4) - (4) Total recorded at fair value $ 46 $ 6 $ - $ 52 Fair Value Measurement at December 31, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Investments $ 49 $ - $ - $ 49 Derivatives - 1 - 1 Liabilities Derivatives - (58) (58) Total recorded at fair value $ 49 $ (57) $ - $ (8) |
Schedule Of Fair Value Carried At Cost And Measured On A Nonrecurring Basis | Fair Value Measurement at March 31, 2017 (Dollars in thousands) Carrying Value (1) Level 1 Level 2 Level 3 Total Notes payable $ 125,451 $ - $ - $ 126,176 $ 126,176 Subordinated debt 27,913 - - 15,461 15,461 $ 153,364 $ - $ - $ 141,637 $ 141,637 Fair Value Measurement at December 31, 2016 (Dollars in thousands) Carrying Value (1) Level 1 Level 2 Level 3 Total Notes payable $ 120,622 $ - $ - $ 121,204 $ 121,204 Subordinated debt 27,913 - - 15,247 15,247 $ 148,535 $ - $ - $ 136,451 $ 136,451 (1) These balances are presented before any deduction for deferred financing costs. |
Insurance Recoverable (Tables)
Insurance Recoverable (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Insurance Recoverable [Abstract] | |
Schedule Of The Total Incurred Losses And Recoverable Amounts From Insurance Claims | Determination of Insurance Recoverable (mainly New Zealand Dollars in thousands, unless otherwise noted) December 31, 2016 (5) Changes in Estimate March 31, 2017 (5) Written down value of parking building (1) NZ $ 13,451 NZ $ 347 NZ $ 13,798 Estimated demolition costs and others (2) 7,276 82 7,358 Total expected incurred losses 20,727 429 21,156 Less: advance payment from Insurer (3)(4) (7,103) -- (7,103) Insurance Recoverable for Incurred Losses (in local currency) NZ $ 13,624 NZ $ 429 NZ $ 14,053 Insurance Recoverable for Incurred Losses (in U.S. Dollars) (4) US $ 9,480 US $ 306 US $ 9,839 (1) Recorded land value was excluded in the impairment determination. (2) $ 306 ,000 (NZ$ 429,000 ) represents changes in our initial estimates for demolition costs, which are allowable to be recorded in the period of change. Also, this amount included legal costs incurred during the insurance claim process which are reimbursable under our insurance policy. (3) This represents the advance claims settlement from the Insurer of $5.0 million (NZ$7.1 million). (4) In line with our standard translation policy, balance sheet items were translated into U.S. dollars based on the spot exchange rate as of March 31, 2017 and December 31, 2016, while the impact on our statement of income was translated using the average exchange rate for the current quarter . ( 5 ) T he insurance recoverable of $9.5 million (NZ$13.6 million) as of December 31, 2016 was presented as part of “ Other non-current assets ” as the timing of the insurance claim receipt is not fixed nor reliably determinable at the time of issuance of the 2016 Form 10-K. Subsequently, we reclassified the insurance recoverable of $9.8 million (NZ$14.1 million) as of March 31, 2017 to a current asset category as part of “ Prepaid and other current assets ” based on latest developments on our insurance claim , where we expect to receive the final settlement in less than a year . Refer to further details in Note 19 – Subsequent Events . |
Description Of Business And S42
Description Of Business And Segment Reporting (Summary Of Results Of Operations For Principal Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | $ 69,454 | $ 64,789 |
Segment operating income | 5,528 | 4,692 |
Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment operating income | 10,387 | 9,779 |
Inter-segment Elimination [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | (1,603) | (1,776) |
Cinema Exhibition [Member] | Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 66,560 | 61,315 |
Segment operating income | 9,093 | 7,690 |
Real Estate [Member] | Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 4,497 | 5,250 |
Segment operating income | $ 1,294 | $ 2,089 |
Description Of Business And S43
Description Of Business And Segment Reporting (Reconciliation To Net Income Attributable To Common Shareholders) (Details) NZD in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016NZD | Dec. 31, 2016USD ($) | [1] | |||
Operating income | $ 5,528 | $ 4,692 | |||||
Depreciation and amortization expense | (3,934) | (3,808) | |||||
General and administrative expense | (6,174) | (6,191) | |||||
Casualty loss | NZD 429 | $ 306 | |||||
Income tax benefit (expense) | (1,703) | (1,231) | |||||
Equity earnings of unconsolidated joint ventures | 255 | 302 | [2] | ||||
Gain on sale of assets | [2] | 393 | |||||
Other income (expense) | 821 | (57) | |||||
Income before income taxes | 4,744 | 3,455 | |||||
Operating Segments [Member] | |||||||
Operating income | 10,387 | 9,779 | |||||
Corporate, Non-segment [Member] | |||||||
Depreciation and amortization expense | (106) | (96) | |||||
General and administrative expense | (4,753) | (4,991) | |||||
Interest expense, net | (1,860) | (1,875) | |||||
Equity earnings of unconsolidated joint ventures | 255 | 302 | |||||
Gain on sale of assets | 393 | ||||||
Other income (expense) | 821 | (57) | |||||
Income before income taxes | $ 4,744 | $ 3,455 | |||||
[1] | In line with our standard translation policy, balance sheet items were translated into U.S. dollars based on the spot exchange rate as of March 31, 2017 and December 31, 2016, while the impact on our statement of income was translated using the average exchange rate for the current quarter. | ||||||
[2] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Operation in Foreign Currency (
Operation in Foreign Currency (Summary Of Currency Exchange Rates) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($) | Mar. 31, 2016 | Dec. 31, 2016 | |
Currency Exchange Rates [Line Items] | |||
Gain recognized on foreign currency transactions | $ 825 | ||
Australian Dollar [Member] | Spot Rate [Member] | |||
Currency Exchange Rates [Line Items] | |||
Foreign currency exchange rate | 0.7638 | 0.7677 | 0.7230 |
Australian Dollar [Member] | Average Rate [Member] | |||
Currency Exchange Rates [Line Items] | |||
Foreign currency exchange rate | 0.7584 | 0.7216 | 0.7440 |
New Zealand Dollar [Member] | Spot Rate [Member] | |||
Currency Exchange Rates [Line Items] | |||
Foreign currency exchange rate | 0.7001 | 0.6926 | 0.6958 |
New Zealand Dollar [Member] | Average Rate [Member] | |||
Currency Exchange Rates [Line Items] | |||
Foreign currency exchange rate | 0.7122 | 0.6637 | 0.6973 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Dilutes Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income attributable to RDI common stockholders | $ 3,029 | $ 2,226 |
Weighted average shares of common stock – basic | 23,168,351 | 23,334,892 |
Weighted average dilutive impact of stock-based awards | 296,825 | 197,966 |
Weighted averageshares of common stock – diluted | 23,465,176 | 23,532,858 |
Basic EPS attributable for RDI common stockholders | $ 0.13 | $ 0.10 |
Diluted EPS attributable to RDI common stockholders | $ 0.13 | $ 0.09 |
Awards excluded from diluted EPS |
Property And Equiment (Narrativ
Property And Equiment (Narrative) (Details) AUD in Millions | Apr. 11, 2016USD ($)ft²item | Apr. 01, 2015NZDproperty | May 23, 2014AUD | May 23, 2014USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017AUD | Mar. 31, 2017USD ($) | Dec. 31, 2016AUD | Dec. 31, 2016USD ($) | Apr. 30, 2015NZD | Apr. 30, 2015USD ($) | Apr. 01, 2015USD ($) | May 12, 2014AUDa | May 12, 2014USD ($)a | ||
Property, Plant and Equipment [Line Items] | |||||||||||||||||
Depreciation expense for property and equipment | $ 3,500,000 | $ 3,500,000 | |||||||||||||||
Carrying value of property | $ 216,358,000 | $ 211,886,000 | [1] | ||||||||||||||
Gain (loss) on sale of assets | [1] | $ 393,000 | |||||||||||||||
5995 Sepulveda Blvd, Culver City [Member] | |||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||
Sale price | $ 11,200,000 | ||||||||||||||||
Area of property | ft² | 24,000 | ||||||||||||||||
Number of parking spaces | item | 72 | ||||||||||||||||
Percent of leasable area | 50.00% | ||||||||||||||||
Burwood [Member] | |||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||
Sale price | AUD 65 | $ 50,600,000 | |||||||||||||||
Remaining purchase price | AUD 58.5 | 44,700,000 | |||||||||||||||
Carrying value of property | AUD 52.1 | $ 39,800,000 | AUD 52.1 | $ 37,700,000 | |||||||||||||
Area of property | a | 50.6 | 50.6 | |||||||||||||||
Proceeds from the sale property | AUD 6.5 | $ 5,900,000 | |||||||||||||||
Sale agreements, prepayment as a percentage of net sale price | 90.00% | 90.00% | |||||||||||||||
Lake Taupo [Member] | |||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||
Number of land parcels sold | property | 2 | ||||||||||||||||
Sale price | NZD 3,400,000 | $ 2,400,000 | |||||||||||||||
Lake Taupo Parcel One [Member] | |||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||
Sale price | NZD 2,200,000 | $ 1,600,000 | |||||||||||||||
Carrying value of property | 1,800,000 | 1,300,000 | |||||||||||||||
Lake Taupo Parcel Two [Member] | |||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||
Sale price | 1,200,000 | 831,000 | |||||||||||||||
Carrying value of property | NZD 615,000 | $ 426,000 | |||||||||||||||
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Property And Equipment [Abstract] | |||
Land | $ 75,577 | $ 73,803 | |
Building and improvements | 127,273 | 122,863 | |
Leasehold improvements | 48,171 | 46,902 | |
Fixtures and equipment | 122,963 | 118,180 | |
Construction-in-progress | 11,805 | 11,517 | |
Total cost | 385,789 | 373,265 | |
Less: accumulated depreciation | (169,431) | (161,379) | |
Operating property, net | $ 216,358 | $ 211,886 | [1] |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Property And Equipment (Summary
Property And Equipment (Summary Of Investment And Development Property) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Investment and development property, net | $ 50,231 | $ 43,687 | [1] |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Investment and development property, net | 24,791 | 24,616 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Investment and development property, net | 1,900 | 1,900 | |
Construction-In-Progress (including capitalized interest) [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Investment and development property, net | $ 23,540 | $ 17,171 | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Property And Equipment (Constru
Property And Equipment (Construction-In-Progress Balance) (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Property, Plant and Equipment [Line Items] | ||
Balance | $ 11,517,000 | |
Balance | 11,805,000 | |
Capitalized interest charges | 155,000 | |
Operating And Investing Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Balance | 28,688,000 | |
Additions during the quarter | 7,753,000 | [1] |
Completed during the quarter | (1,342,000) | |
Foreign currency movements | 246,000 | |
Balance | 35,345,000 | |
Operating And Investing Properties [Member] | Union Square Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Balance | 11,412,000 | |
Additions during the quarter | 4,259,000 | [1] |
Completed during the quarter | ||
Foreign currency movements | ||
Balance | 15,671,000 | |
Operating And Investing Properties [Member] | Newmarket Property Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Balance | 2,106,000 | |
Additions during the quarter | 1,714,000 | [1] |
Completed during the quarter | ||
Foreign currency movements | 131,000 | |
Balance | 3,951,000 | |
Operating And Investing Properties [Member] | Courtenay Central Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Balance | 3,510,000 | |
Additions during the quarter | 232,000 | [1] |
Completed during the quarter | ||
Foreign currency movements | 20,000 | |
Balance | 3,762,000 | |
Operating And Investing Properties [Member] | Cinema Developments And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Balance | 7,796,000 | |
Additions during the quarter | 87,000 | [1] |
Completed during the quarter | (959,000) | |
Foreign currency movements | 20,000 | |
Balance | 6,944,000 | |
Operating And Investing Properties [Member] | Other Real Estate Projects [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Balance | 3,864,000 | |
Additions during the quarter | 1,461,000 | [1] |
Completed during the quarter | (383,000) | |
Foreign currency movements | 75,000 | |
Balance | $ 5,017,000 | |
[1] | Includes capitalized interest of $155,000 for the quarter ended March 31, 2017. |
Investments In Unconsolidated50
Investments In Unconsolidated Joint Ventures (Summary Of The Investments In Unconsolidated Joint Ventures And Entities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Total investments | $ 5,259 | $ 5,071 | [1] |
Rialto Distribution [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest | 33.30% | ||
Rialto Cinemas [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest | 50.00% | ||
Total investments | $ 1,173 | 1,197 | |
Mt. Gravatt [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest | 33.30% | ||
Total investments | $ 4,086 | $ 3,874 | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Investments In Unconsolidated51
Investments In Unconsolidated Joint Ventures (Summary Of Equity Earnings (Loss) From Investments In Unconsolidated Joint Ventures And Entities) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Schedule of Equity Method Investments [Line Items] | |||
Total equity earnings | $ 255 | $ 302 | [1] |
Rialto Distribution [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity earnings | |||
Rialto Cinemas [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity earnings | 39 | 76 | |
Mt. Gravatt [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity earnings | $ 216 | $ 226 | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Goodwill And Intangible Asset52
Goodwill And Intangible Assets (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Beneficial Leases [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful life | 30 years |
Trade Name [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful life | 45 years |
Other Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful life | 30 years |
Goodwill And Intangible Asset53
Goodwill And Intangible Assets (Summary Of Goodwill) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 19,828 | [1] |
Foreign currency translation adjustment | 245 | |
Ending balance | 20,073 | |
Cinema [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 14,604 | |
Foreign currency translation adjustment | 245 | |
Ending balance | 14,849 | |
Real Estate [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 5,224 | |
Foreign currency translation adjustment | ||
Ending balance | $ 5,224 | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Goodwill And Intangible Asset54
Goodwill And Intangible Assets (Summary Of Intangible Assets Other Than Goodwill) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 37,136 | $ 37,009 | |
Less: Accumulated amortization | (27,426) | (26,972) | |
Net intangible assets other than goodwill | 9,710 | 10,037 | [1] |
Beneficial Leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 28,797 | 28,671 | |
Less: Accumulated amortization | (22,243) | (21,870) | |
Net intangible assets other than goodwill | 6,554 | 6,801 | |
Trade Name [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 7,254 | 7,254 | |
Less: Accumulated amortization | (4,710) | (4,634) | |
Net intangible assets other than goodwill | 2,544 | 2,620 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,085 | 1,084 | |
Less: Accumulated amortization | (473) | (468) | |
Net intangible assets other than goodwill | $ 612 | $ 616 | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Goodwill And Intangible Asset55
Goodwill And Intangible Assets (Summary Of Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization | $ 406 | $ 461 |
Beneficial Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization | 304 | 365 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization | $ 102 | $ 96 |
Prepaid And Other Assets (Summa
Prepaid And Other Assets (Summary Of Prepaid And Other Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | ||
Prepaid And Other Assets [Abstract] | ||||
Insurance receivable | [1] | $ 9,839 | ||
Prepaid expenses | 2,088 | $ 981 | ||
Prepaid taxes | 3,042 | 3,098 | ||
Prepaid rent | 1,616 | 1,237 | ||
Deposits | 404 | 404 | ||
Investment in marketable securities | 46 | 50 | ||
Restricted cash | 17 | 17 | ||
Total prepaid and other current assets | 17,052 | 5,787 | [2] | |
Insurance receivable | [1] | 9,480 | ||
Other non-cinema and non-rental real estate assets | 1,134 | 1,134 | ||
Investment in Reading International Trust I | 838 | 838 | ||
Interest rate cap at fair value | 10 | 1 | ||
Straight-line rent | 2,537 | 2,457 | ||
Long-term deposits | 28 | 39 | ||
Total non-current assets | $ 4,547 | $ 13,949 | [2] | |
[1] | Refer to Note 18 - Insurance Recoverable for further discussion on this item. | |||
[2] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes [Abstract] | ||
Effective tax rate | 35.90% | 35.60% |
Debt (US Union Square Construct
Debt (US Union Square Construction Financing) (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)loan | Dec. 31, 2016USD ($) | ||
Debt Instrument [Line Items] | |||
Contractual facility | $ 268,944 | $ 266,134 | |
US Union Square Construction [Member] | |||
Debt Instrument [Line Items] | |||
Contractual facility | 57,500 | $ 57,500 | [1] |
Advanced to Date | 8,000 | ||
Facility Limit | 57,500 | ||
US Union Square Construction [Member] | Bank Of The Ozarks [Member] | |||
Debt Instrument [Line Items] | |||
Contractual facility | $ 50,000 | ||
Number of loan tranches | loan | 3 | ||
US Union Square Construction [Member] | Bank Of The Ozarks [Member] | Senior Loan [Member] | |||
Debt Instrument [Line Items] | |||
Advanced to Date | $ 8,000 | ||
Facility Limit | 8,000 | ||
US Union Square Construction [Member] | Tammany Mezz Investor, LLC [Member] | Mezzanine Loan [Member] | |||
Debt Instrument [Line Items] | |||
Contractual facility | 7,500 | ||
Facility Limit | $ 7,500 | ||
[1] | The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building, was obtained with Citizens Asset Finance, Inc. during the fourth quarter of 2016. In December 2016, we successfully negotiated the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million. |
Debt (Cinemas 1, 2, 3 Term Loan
Debt (Cinemas 1, 2, 3 Term Loan) (Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Contractual facility | $ 268,944 | $ 266,134 | ||
US Cinema 1, 2, 3 Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Contractual facility | $ 19,800 | $ 19,901 | [1] | |
Maturity date | Sep. 1, 2019 | Sep. 1, 2019 | [1] | |
US Cinema 1, 2, 3 Term Loan [Member] | Sutton Hill Properties LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Ownership percentage by parent | 75.00% | |||
Contractual facility | $ 15,000 | |||
Maturity date | Sep. 1, 2019 | |||
Interest rate | 3.25% | |||
Line of credit facility, maximum borrowing capacity | $ 20,000 | |||
[1] | The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building, was obtained with Citizens Asset Finance, Inc. during the fourth quarter of 2016. In December 2016, we successfully negotiated the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million. |
Debt (Bank Of America Credit Fa
Debt (Bank Of America Credit Facility) (Narrative) (Details) - USD ($) $ in Thousands | Mar. 03, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Contractual facility | $ 268,944 | $ 266,134 | |
US Bank Of America Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Contractual facility | $ 55,000 | $ 55,000 | $ 55,000 |
Reduced leverage ratio | 0.25% |
Debt (Summary Of Notes Payable)
Debt (Summary Of Notes Payable) (Details) - USD ($) $ in Thousands | Mar. 03, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |||
Debt Instrument [Line Items] | ||||||
Contractual facility | $ 268,944 | $ 266,134 | ||||
Balance Gross | 153,364 | 148,535 | ||||
Balance Net | 148,809 | [1] | 143,614 | [2] | ||
Deferred financing costs, net | $ 4,600 | $ 4,900 | ||||
Trust Preferred Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Apr. 30, 2027 | Apr. 30, 2027 | ||||
Contractual facility | $ 27,913 | $ 27,913 | ||||
Balance Gross | 27,913 | 27,913 | ||||
Balance Net | $ 27,393 | [1] | $ 27,340 | [2] | ||
Stated interest rate | 5.04% | 4.89% | ||||
Effective interest rate | 5.20% | [3] | 5.20% | [4] | ||
US Bank Of America Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Nov. 28, 2019 | Nov. 28, 2019 | ||||
Contractual facility | $ 55,000 | $ 55,000 | $ 55,000 | |||
Balance Gross | 39,000 | 39,950 | ||||
Balance Net | $ 38,866 | [1] | $ 39,759 | [2] | ||
Stated interest rate | 3.48% | 3.27% | ||||
Effective interest rate | 3.65% | [3] | 3.90% | [4] | ||
US Bank Of America Line Of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Oct. 31, 2019 | Oct. 31, 2019 | ||||
Contractual facility | $ 5,000 | $ 5,000 | ||||
Balance Gross | 1,000 | |||||
Balance Net | [1] | $ 1,000 | ||||
Stated interest rate | 3.98% | 3.77% | ||||
Effective interest rate | 3.98% | [3] | 3.77% | [4] | ||
US Cinema 1, 2, 3 Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Sep. 1, 2019 | Sep. 1, 2019 | [5] | |||
Contractual facility | $ 19,800 | $ 19,901 | [5] | |||
Balance Gross | 19,800 | 19,901 | [5] | |||
Balance Net | $ 19,293 | [1] | $ 19,356 | [2],[5] | ||
Stated interest rate | 3.25% | 3.25% | [5] | |||
Effective interest rate | 3.25% | [3] | 3.25% | [4],[5] | ||
Minetta and Orpheum Theatres Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Jun. 1, 2018 | Jun. 1, 2018 | [5] | |||
Contractual facility | $ 7,500 | $ 7,500 | [5] | |||
Balance Gross | 7,500 | 7,500 | [5] | |||
Balance Net | $ 7,416 | [1] | $ 7,398 | [2],[5] | ||
Stated interest rate | 3.56% | 3.38% | [5] | |||
Effective interest rate | 3.56% | [3] | 3.38% | [4],[5] | ||
U.S. Corporate Office Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Jan. 1, 2027 | Jan. 1, 2027 | [5] | |||
Contractual facility | $ 8,333 | $ 8,363 | [5] | |||
Balance Gross | 8,333 | 8,363 | [5] | |||
Balance Net | $ 8,212 | [1] | $ 8,239 | [2],[5] | ||
Stated interest rate | 4.64% | 4.64% | [5] | |||
Effective interest rate | 4.64% | [3] | 4.64% | [4],[5] | ||
US Union Square Construction [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Dec. 29, 2019 | Dec. 29, 2019 | [5] | |||
Contractual facility | $ 57,500 | $ 57,500 | [5] | |||
Balance Gross | 8,000 | 8,000 | [5] | |||
Balance Net | $ 4,942 | [1] | $ 4,751 | [2],[5] | ||
Stated interest rate | 5.24% | 4.52% | [5] | |||
Effective interest rate | 5.24% | [3] | 4.52% | [4],[5] | ||
National Australia Bank ("NAB") Corporate Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Jun. 28, 2019 | [6] | Jun. 30, 2019 | [7] | ||
Contractual facility | $ 50,793 | [6] | $ 48,080 | [7] | ||
Balance Gross | 31,316 | [6] | 28,558 | [7] | ||
Balance Net | $ 31,185 | [1],[6] | $ 28,421 | [2],[7] | ||
Stated interest rate | 2.63% | [6] | 2.64% | [7] | ||
Effective interest rate | 2.63% | [3],[6] | 2.64% | [4],[7] | ||
Westpac Bank Corporate Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Dec. 31, 2018 | [6] | Mar. 31, 2018 | [7] | ||
Contractual facility | $ 37,105 | [6] | $ 36,877 | [7] | ||
Balance Gross | 10,502 | [6] | 8,350 | [7] | ||
Balance Net | $ 10,502 | [1],[6] | $ 8,350 | [2],[7] | ||
Stated interest rate | 3.70% | [6] | 3.80% | [7] | ||
Effective interest rate | 3.70% | [3],[6] | 3.80% | [4],[7] | ||
[1] | Net of deferred financing costs amounting to $4.6 million. | |||||
[2] | Net of deferred financing costs amounting to $4.9 million. | |||||
[3] | Effective interest rate includes the impact of interest rate derivatives hedging the interest rate risk associated with Trust Preferred Securities and Bank of America Credit Facility that were outstanding as of March 31, 2017. | |||||
[4] | Effective interest rate includes the impact of interest rate derivatives hedging the interest rate risk associated with Trust Preferred Securities and Bank of America Credit Facility that were outstanding as of December 31, 2016. | |||||
[5] | The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building, was obtained with Citizens Asset Finance, Inc. during the fourth quarter of 2016. In December 2016, we successfully negotiated the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million. | |||||
[6] | The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on the applicable exchange rates as of March 31, 2017. | |||||
[7] | The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on the applicable exchange rates as of December 31, 2016. |
Debt (Schedule of Construction
Debt (Schedule of Construction Financing) (Details) - US Union Square Construction [Member] $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)item | Dec. 31, 2016 | [1] | ||
Debt Instrument [Line Items] | ||||
Facility Limit | $ 57,500 | |||
Advanced to Date | 8,000 | |||
Remaining Facility | $ 49,500 | |||
Maturity date | Dec. 29, 2019 | Dec. 29, 2019 | ||
Number of extension options | item | 2 | |||
Extension period | 1 year | |||
Bank Of The Ozarks [Member] | Senior Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility Limit | $ 8,000 | |||
Advanced to Date | $ 8,000 | |||
Interest rate | 4.75% | |||
Spread over LIBOR | 4.25% | |||
Maturity date | [2] | Dec. 29, 2019 | ||
Bank Of The Ozarks [Member] | Building Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility Limit | $ 31,130 | |||
Remaining Facility | $ 31,130 | |||
Interest rate | 4.75% | |||
Spread over LIBOR | 4.25% | |||
Maturity date | [2] | Dec. 29, 2019 | ||
Bank Of The Ozarks [Member] | Project Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility Limit | $ 10,870 | |||
Remaining Facility | $ 10,870 | |||
Interest rate | 4.75% | |||
Spread over LIBOR | 4.25% | |||
Maturity date | [2] | Dec. 29, 2019 | ||
Tammany Mezz Investor, LLC [Member] | Mezzanine Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility Limit | $ 7,500 | |||
Remaining Facility | $ 7,500 | |||
Interest rate | 10.50% | |||
Spread over LIBOR | 10.00% | |||
Maturity date | [2] | Dec. 29, 2019 | ||
Maximum [Member] | New York State [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 16.00% | |||
[1] | The loan for our Minetta & Orpheum Theatres was obtained from Santander Bank. The term loan for our Cinema 1,2,3 Theatre was refinanced during the third quarter of 2016 with Valley National Bank. The term loan, which is collateralized by our new U.S Corporate Headquarters office building, was obtained with Citizens Asset Finance, Inc. during the fourth quarter of 2016. In December 2016, we successfully negotiated the construction financing for our Union Square redevelopment project, $8.0 million of which was advanced from the total construction loan limit of $57.5 million. | |||
[2] | Allowable for up to two (2) extension request options, one (1) year for each extension request. |
Other Liabilities (Narrative) (
Other Liabilities (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Aug. 29, 2014 | |
Other Liabilities [Line Items] | ||||
Accrued pension costs | $ 5,606,000 | $ 5,732,000 | $ 7,500,000 | |
Service cost | 0 | $ 0 | ||
Interest cost | 45,000 | 45,000 | ||
Actuarial loss (gain) | (52,000) | $ (32,000) | ||
Benefit obligation | $ 10,200,000 | |||
Discount rate | 4.25% | |||
Discount term | 15 years | |||
Monthly estate payment amount | $ 57,000 | |||
Discounted value | 2,700,000 | |||
Accumulated prior service cost | $ 3,100,000 | |||
Accumulated prior service cost amortization period | 15 years | |||
Accrued pension costs included in other liabilities | $ 8,000,000 | |||
Supplemental Executive Retirement Plans [Member] | ||||
Other Liabilities [Line Items] | ||||
Accrued pension costs | $ 7,600,000 |
Other Liabilities (Summary Of O
Other Liabilities (Summary Of Other Liabilities Including Pension) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Aug. 29, 2014 | |
Other Liabilities [Abstract] | ||||
Liability for demolition costs | $ 3,534 | $ 5,914 | ||
Lease liability | 5,900 | 5,900 | ||
Accrued pension | 2,394 | 2,223 | ||
Security deposit payable | 87 | 77 | ||
Other | 63 | 17 | ||
Other current liabilities | 11,978 | 14,131 | [1] | |
Straight-line rent liability | 12,556 | 12,413 | ||
Accrued pension | 5,606 | 5,732 | $ 7,500 | |
Lease make-good provision | 5,363 | 5,146 | ||
Environmental reserve | 1,656 | 1,656 | ||
Interest rate swap | 4 | 58 | ||
Deferred revenue - real estate | 4,716 | 4,398 | ||
Acquired leases | 250 | 267 | ||
Other | 497 | 495 | ||
Other liabilities | $ 30,648 | $ 30,165 | [1] | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Summary Of Accumulated Other Comprehensive Income) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 12,075 | [1] |
Net current-period other comprehensive income | 5,861 | |
Balance | 17,936 | |
Foreign Currency Items [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 14,784 | |
Net current-period other comprehensive income | 5,813 | |
Balance | 20,597 | |
Unrealized Gain (Losses) On Available-For-Sale Investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 10 | |
Net current-period other comprehensive income | (4) | |
Balance | 6 | |
Accrued Pension Service Costs [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (2,719) | |
Net current-period other comprehensive income | 52 | |
Balance | $ (2,667) | |
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2016USD ($) | Mar. 31, 2017NZD | Mar. 31, 2017USD ($) | Dec. 31, 2016NZD | Dec. 31, 2016USD ($) | Aug. 03, 2016shares | May 31, 2016shares | |
Commitments And Contingencies [Line Items] | |||||||
Total debt of unconsolidated joint ventures and entities | NZD 1,500,000 | $ 1,100,000 | NZD 1,500,000 | $ 1,000,000 | |||
Share of unconsolidated debt, based on ownership percentage | NZD | 500,000 | 500,000 | |||||
Accrued debt | NZD 500,000 | 350,000 | NZD 500,000 | $ 348,000 | |||
Derivative Litigation And James J. Cotter, Jr. Employment Arbitration [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Amount of damages claimed by plaintiff | 1,200,000 | ||||||
Litigation expense | 645,000 | ||||||
Coverage limit | 10,000,000 | ||||||
The STOMP Arbitration [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Settlement awarded | $ 2,300,000 | ||||||
Litigation interest percent | 4.00% | ||||||
Litigation payment received | $ 475,000 | ||||||
Litigation final payment date | June 2,019 | June 2,019 | |||||
Class B [Member] | Derivative Litigation And James J. Cotter, Jr. Employment Arbitration [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Shares held by estate | shares | 100,000 | ||||||
Class B [Member] | Cotter Estate [Member] | Derivative Litigation And James J. Cotter, Jr. Employment Arbitration [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Shares held by estate | shares | 327,808 | ||||||
Class B [Member] | Cotter Trust [Member] | Derivative Litigation And James J. Cotter, Jr. Employment Arbitration [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Shares held by estate | shares | 696,080 |
Non-controlling Interests (Narr
Non-controlling Interests (Narrative) (Details) | Mar. 31, 2017 |
Australia Country Cinemas, Pty Ltd [Member] | |
Ownership percentage by noncontrolling interest | 25.00% |
Shadow View Land And Farming, LLC [Member] | |
Ownership percentage by noncontrolling interest | 50.00% |
Sutton Hill Properties LLC [Member] | |
Ownership percentage by noncontrolling interest | 25.00% |
Non-controlling Interests (Comp
Non-controlling Interests (Components Of Non-controlling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | ||
Non-controlling interests in consolidated subsidiaries | $ 4,407 | $ 4,418 |
Australia Country Cinemas, Pty Ltd [Member] | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests in consolidated subsidiaries | 244 | 264 |
Shadow View Land And Farming, LLC [Member] | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests in consolidated subsidiaries | 2,005 | 1,980 |
Sutton Hill Properties LLC [Member] | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests in consolidated subsidiaries | $ 2,158 | $ 2,174 |
Non-controlling Interests (Co69
Non-controlling Interests (Components Of Income/(Loss) Attributable To Non-controlling Interest) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Noncontrolling Interest [Line Items] | ||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries | $ 12 | $ (2) |
Australia Country Cinemas, Pty Ltd [Member] | ||
Noncontrolling Interest [Line Items] | ||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries | 44 | 34 |
Shadow View Land And Farming, LLC [Member] | ||
Noncontrolling Interest [Line Items] | ||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries | (16) | (10) |
Sutton Hill Properties LLC [Member] | ||
Noncontrolling Interest [Line Items] | ||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries | $ (16) | $ (26) |
Noncontrolling Interests (Summa
Noncontrolling Interests (Summary Of Changes In Controlling And Non-controlling Stockholders’ Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Noncontrolling Interest [Line Items] | ||||
Balance | [1] | $ 146,615 | ||
Net income | 3,041 | $ 2,224 | [1] | |
Distributions to noncontrolling stockholders | (77) | (55) | [1] | |
Accumulated other comprehensive income (loss) | (13) | (16) | ||
Balance | 154,991 | |||
Reading International Inc. Stockholders Equity [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Balance | 142,197 | 132,865 | ||
Net income | 3,029 | 2,226 | ||
Increase in additional paid in capital | 169 | 143 | ||
Treasury stock purchased | (672) | |||
Contributions from noncontrolling stockholders - SHP | ||||
Distributions to noncontrolling stockholders | ||||
Accumulated other comprehensive income (loss) | 5,861 | 6,340 | ||
Balance | 150,584 | 141,574 | ||
Noncontrolling Interests [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Balance | 4,418 | 4,331 | ||
Net income | 12 | (2) | ||
Increase in additional paid in capital | ||||
Treasury stock purchased | ||||
Contributions from noncontrolling stockholders - SHP | 41 | |||
Distributions to noncontrolling stockholders | (77) | (55) | ||
Accumulated other comprehensive income (loss) | 13 | 16 | ||
Balance | 4,407 | 4,290 | ||
Total Stockholders' Equity [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Balance | 146,615 | 137,196 | ||
Net income | 3,041 | 2,224 | ||
Increase in additional paid in capital | 169 | 143 | ||
Treasury stock purchased | (672) | |||
Contributions from noncontrolling stockholders - SHP | 41 | |||
Distributions to noncontrolling stockholders | (77) | (55) | ||
Accumulated other comprehensive income (loss) | 5,874 | 6,356 | ||
Balance | $ 154,991 | $ 145,864 | ||
[1] | Certain 2016 balances have been reclassified to conform to the 2017 presentation (see Note 2 - Summary of Significant Accounting Policies - Reclassifications). |
Stock-Based Compensation and 71
Stock-Based Compensation and Stock Repurchases (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 02, 2017 | Dec. 31, 2016 | |
Stock Option [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Grant date fair value of options vesting | $ 53,000 | $ 98,000 | ||
Unrecognized estimated compensation cost related to non-vested stock options granted | $ 1,100,000 | |||
Recognition period of unrecognized compensation cost | 2 years 2 months 12 days | |||
Intrinsic unrealized value of all options outstanding, vested and expected to vest | $ 3,600,000 | |||
Percentage of option currently exercisable | 81.70% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Compensation expense | $ 120,000 | $ 31,000 | ||
Unrecognized estimated compensation cost related to non-vested stock options granted | $ 1,300,000 | |||
Vesting period of stock options and RSU | 4 years | |||
Restricted Stock Units (RSUs) [Member] | Director [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Percentage of shares vested | 100.00% | |||
Restricted Stock Units (RSUs) [Member] | Management [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Percentage of shares vested | 25.00% | |||
May 2014 Stock Repurchase Plan [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Repurchase program, amount authorized | $ 10,000,000 | |||
$25 Million Stock Repurchase Program [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Repurchase value | $ 671,000 | |||
Repurchase program, amount authorized | $ 25,000,000 | |||
Repurchase program, remaining amount authorized | $ 24,300,000 | |||
Share price | $ 15.99 | |||
Class A Nonvoting Common Stock [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Common Stock authorized for issuance under 2010 Stock Incentive Plan | 1,250,000 | |||
Minimum [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Vesting period of stock options and RSU | 0 years | |||
Maximum [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Vesting period of stock options and RSU | 4 years |
Stock-Based Compensation and 72
Stock-Based Compensation and Stock Repurchases (Schedule Of Fair Value Of Options, Weighted Average Assumptions) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock-Based Compensation and Stock Repurchases [Abstract] | ||
Stock option exercise price | $ 15.97 | $ 11.83 |
Risk-free interest rate | 1.68% | 1.24% |
Expected option life in years | 3 years 9 months | 3 years 9 months |
Expected volatility | 24.92% | 24.94% |
Weighted average fair value | $ 3.46 | $ 2.48 |
Stock-Based Compensation and 73
Stock-Based Compensation and Stock Repurchases (Schedule Of Stock Options Outstanding And Exercisable) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity And Stock-Based Compensation [Line Items] | ||||
Weighted Average Exercise Price of Options Outstanding, Granted | $ 15.97 | $ 11.83 | ||
Class A [Member] | ||||
Equity And Stock-Based Compensation [Line Items] | ||||
Common Stock Options Outstanding, Beginning balance | 535,077 | 486,565 | 486,565 | |
Common Stock Options Outstanding, Granted | 149,841 | 169,327 | ||
Common Stock Options Outstanding, Exercised | (10,500) | (46,815) | ||
Common Stock Options Outstanding, Forfeited | (2,500) | (74,000) | ||
Common Stock Options Outstanding, Ending balance | 671,918 | 535,077 | 486,565 | |
Weighted Average Exercise Price of Options Outstanding, Beginning price | $ 9.84 | $ 8.68 | $ 8.68 | |
Weighted Average Exercise Price of Options Outstanding, Granted | 15.97 | 11.87 | ||
Weighted Average Exercise Price of Options Outstanding, Exercised | 8.25 | 9.50 | ||
Weighted Average Exercise Price of Options Outstanding, Forfeited | 6.23 | 7.02 | ||
Weighted Average Exercise Price of Options Outstanding, Ending price | $ 11.25 | $ 9.84 | $ 8.68 | |
Common Stock Exercisable Options, Outstanding Beginning balance | 3,615,191 | 2,188,011 | 2,188,011 | |
Common Stock Exercisable Options Outstanding, Exercised | 91,020 | 220,002 | ||
Common Stock Exercisable Options, Outstanding Ending balance | 3,608,972 | 3,615,191 | 2,188,011 | |
Weighted average remaining years of contractual life | 1 year 10 months 17 days | 2 years 7 months 10 days | 2 years 10 months 21 days |
Stock-Based Compensation and 74
Stock-Based Compensation and Stock Repurchases (Summary of Restricted Stock Units Granted) (Details) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2017shares | |
Options granted | 131,297 |
Vested | 41,993 |
Nonvested | 89,304 |
March 10, 2016 [Member] | |
Options granted | 62,528 |
Vested | 41,993 |
Nonvested | 20,535 |
April 11, 2016 [Member] | |
Options granted | 5,625 |
Nonvested | 5,625 |
March 23, 2017 [Member] | |
Options granted | 63,144 |
Nonvested | 63,144 |
Director [Member] | |
Options granted | 65,828 |
Director [Member] | March 10, 2016 [Member] | |
Options granted | 35,147 |
Director [Member] | March 23, 2017 [Member] | |
Options granted | 30,681 |
Management [Member] | |
Options granted | 65,469 |
Management [Member] | March 10, 2016 [Member] | |
Options granted | 27,381 |
Management [Member] | April 11, 2016 [Member] | |
Options granted | 5,625 |
Management [Member] | March 23, 2017 [Member] | |
Options granted | 32,463 |
Derivative Instruments (Set For
Derivative Instruments (Set Forth Terms Of Interest Rate Swap And Cap Derivative Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional amount | $ 63,913 | $ 63,913 |
Other assets | 10 | 1 |
Other current liabilities | 4 | 58 |
Interest Rate Swap [Member] | US Bank Of America Credit Facility [Member] | ||
Derivative [Line Items] | ||
Notional amount | 21,000 | 21,000 |
Other current liabilities | 4 | 40 |
Interest Rate Swap [Member] | Trust Preferred Securities [Member] | ||
Derivative [Line Items] | ||
Notional amount | 27,913 | 27,913 |
Other assets | 10 | |
Other current liabilities | 18 | |
Interest Rate Cap [Member] | US Union Square Construction [Member] | ||
Derivative [Line Items] | ||
Notional amount | 7,500 | 7,500 |
Other assets | 1 | |
Interest Rate Cap [Member] | Minetta and Orpheum Theatres Loan [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 7,500 | $ 7,500 |
Derivative Instruments (Summary
Derivative Instruments (Summary Of Unrealized Gains/Losses In The Financial Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments [Abstract] | ||
Net unrealized income/(losses) on interest rate derivatives | $ 63 | $ (219) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | ||
Transfers of assets and liabilities between level 1, 2, 3 | $ 0 | $ 0 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets and Liabilities Carried and Measured At Fair Value) (Details) - Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Investments | $ 46 | $ 49 |
Assets, Derivatives | 10 | 1 |
Liabilities, Derivatives | (4) | (58) |
Total recorded at fair value | 52 | (8) |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Investments | 46 | 49 |
Total recorded at fair value | 46 | 49 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Derivatives | 10 | 1 |
Liabilities, Derivatives | (4) | (58) |
Total recorded at fair value | $ 6 | $ (57) |
Fair Value Measurements (Sche79
Fair Value Measurements (Schedule Of Fair Value Carried At Cost And Measured On A Nonrecurring Basis) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes payable | $ 126,176 | $ 121,204 | |
Subordinated debt | 15,461 | 15,247 | |
Financial liabilities total | 141,637 | 136,451 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes payable | 126,176 | 121,204 | |
Subordinated debt | 15,461 | 15,247 | |
Financial liabilities total | 141,637 | 136,451 | |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes payable | [1] | 125,451 | 120,622 |
Subordinated debt | [1] | 27,913 | 27,913 |
Financial liabilities total | [1] | $ 153,364 | $ 148,535 |
[1] | These balances are presented before any deduction for deferred financing costs. |
Insurance Recoverable (Schedule
Insurance Recoverable (Schedule Of The Total Incurred Losses And Recoverable Amounts From Insurance Claims) (Details) NZD in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017NZD | Mar. 31, 2017USD ($) | Dec. 31, 2016NZD | Dec. 31, 2016USD ($) | [4] | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | [4] | ||||
Insurance Recoverable [Abstract] | |||||||||||
Written down value of parking structure, Total | [1] | NZD 13,451 | |||||||||
Written down value of parking structure, Changes in Estimates | [1] | 347 | |||||||||
Written down value of parking structure, Recoverable Assets under Insurance Claim | [1],[2] | NZD 13,798 | |||||||||
Estimated demolition costs, Total | [3] | 7,276 | |||||||||
Estimated demolition costs, Changes in Estimate | [3] | 82 | |||||||||
Estimated demolition costs, Recoverable Assets under Insurance Claim | [2],[3] | 7,358 | |||||||||
Total expected incurred losses | 20,727 | ||||||||||
Total expected incurred losses, Recoverable Asset under Insurance Claim | [2] | 21,156 | |||||||||
Less: Advance payment from Insurer | $ 5,000 | (7,103) | [4],[5] | ||||||||
Insurance Recoverable for Incurred Losses, Total | NZD 14,053 | [2] | 13,624 | $ 9,480 | |||||||
Less: Recorded to Statement of Operations Total | NZD 429 | $ 306 | |||||||||
Insurance Recoverable for Incurred Losses, Recoverable Asset under Insurance Claim | $ | [2],[4] | $ 9,839 | |||||||||
[1] | Recorded land value was excluded in the impairment determination. | ||||||||||
[2] | The insurance recoverable of $9.5 million (NZ$13.6 million) as of December 31, 2016 was presented as part of "Other non-current assets" as the timing of the insurance claim receipt is not fixed nor reliably determinable at the time of issuance of the 2016 Form 10-K. Subsequently, we reclassified the insurance recoverable of $9.8 million (NZ$14.1 million) as of March 31, 2017 to a current asset category as part of "Prepaid and other current assets" based on latest developments on our insurance claim, where we expect to receive the final settlement in less than a year. Refer to further details in Note 19 - Subsequent Events. | ||||||||||
[3] | $306,000 (NZ$429,000) represents changes in our initial estimates for demolition costs, which are allowable to be recorded in the period of change. Also, this amount included legal costs incurred during the insurance claim process which are reimbursable under our insurance policy. | ||||||||||
[4] | In line with our standard translation policy, balance sheet items were translated into U.S. dollars based on the spot exchange rate as of March 31, 2017 and December 31, 2016, while the impact on our statement of income was translated using the average exchange rate for the current quarter. | ||||||||||
[5] | This represents the advance claims settlement from the Insurer of $5.0 million (NZ$7.1 million). |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) $ in Thousands, NZD in Millions | Apr. 26, 2017NZD | Apr. 26, 2017USD ($) | Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Subsequent Event [Line Items] | ||||||
Contractual facility | $ 268,944 | $ 266,134 | ||||
Insurance receivable, current | [1] | $ 9,839 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Insurance receivable, current | $ 20,000 | |||||
Proceeds from insurance settlement | $ 25,000 | |||||
New Zealand Corporate Credit Facility, Tranch 1 [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Contractual facility | NZD 35 | $ 24,500 | ||||
Maturity date | Mar. 31, 2018 | Mar. 31, 2018 | ||||
[1] | Refer to Note 18 - Insurance Recoverable for further discussion on this item. |