GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 4 – GOODWILL AND INTANGIBLE ASSETS

Activity of goodwill is presented below:


	U.S.		International
(In thousands)	Markets		Markets		Total
Balance as of December 31, 2014	$	2,289,800	$	—	$	2,289,800
Acquisition of Starplex Cinemas		116,891		—		116,891
Balance as of December 31, 2015		2,406,691		—		2,406,691
Acquisition of Odeon Cinemas		—		898,627		898,627
Acquisition of Carmike Cinemas		624,803		—		624,803
Adjustments to Starplex Cinemas		13,260		—		13,260
Currency translation adjustment		—		(10,421)		(10,421)
Balance as of December 31, 2016	$	3,044,754	$	888,206	$	3,932,960

Detail of other intangible assets is presented below:


		December 31, 2016				December 31, 2015
		Gross				Gross
	Remaining	Carrying		Accumulated		Carrying		Accumulated
(In thousands)	Useful Life	Amount		Amortization		Amount		Amortization
Amortizable Intangible Assets:
Favorable leases	1 to 42 years	$	198,145	$	(27,849)	$	122,831	$	(20,592)
Management contracts and franchise rights	1 to 9 years		5,771		(3,150)		4,540		(2,399)
Non-compete agreement	4 years		2,600		(535)		2,300		—
Starplex trade name	10 years		7,900		(198)		—
Carmike trade name	7 years		10,000		(62)		—		—
NCM tax receivable agreement	20 years		20,900		(3,639)		20,900		(2,804)
Total, amortizable		$	245,316	$	(35,433)	$	150,571	$	(25,795)
Unamortized Intangible Assets:
AMC trademark		$	104,400			$	104,400
Starplex trade name			—				8,200
Odeon trade names			50,859				—
Total, unamortizable		$	155,259			$	112,600

Amortization expense associated with the intangible assets noted above is as follows:


	Year		Year		Year
	Ended		Ended		Ended
	December 31,		December 31,		December 31,
(In thousands)	2016		2015		2014
Recorded amortization	$	9,642	$	8,380	$	8,804

Estimated annual amortization for the next five calendar years for intangible assets is projected below:


(In thousands)	2017		2018		2019		2020		2021
Projected annual amortization	$	17,283	$	16,576	$	14,876	$	13,991	$	12,940

Additional information for Odeon amortizable intangible assets acquired on November 30, 2016 is presented below:


	Weighted Average	Gross
(In thousands)	Amortization Period	Carrying Amount
Odeon Acquired Intangible Assets:
Amortizable Intangible Assets:
Favorable leases	18.3 years	$	59,438
Management contracts	7.4 years		1,195
Total, amortizable	18.1 years	$	60,633

Additional information for Carmike intangible assets acquired on December 21, 2016 is presented below:


	Weighted Average	Gross
(In thousands)	Amortization Period	Carrying Amount
Carmike Acquired Intangible Assets:
Amortizable Intangible Assets:
Favorable leases	17.2 years	$	15,876
Carmike trade name	7 years		10,000
Total, amortizable	13.3 years	$	25,876

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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