Three Months Ended

Nine Months Ended

(In millions)

September 30, 2018

September 30, 2017

September 30, 2018

September 30, 2017

Revenues

$

43.4

$

156.3

$

320.9

$

417.9

Operating costs and expenses

19.1

99.3

230.8

303.6

Net earnings

$

24.3

$

57.0

$

90.1

$

114.3

Accumulated

Exhibitor

Other

Equity in

Investment in

Services

Comprehensive

Cash

(Earnings)

Advertising

(In millions)

NCM (1)

Agreement (2)

(Income)/Loss

Received (Paid)

Loss (3)

(Revenue)

Ending balance at December 31, 2017

$

161.1

$

(530.9)

$

(1.8)

ASC 606 revenue recognition change in amortization method

 —

(52.9)

 —

Surrender of common units for common unit adjustment

(6.3)

5.2

 —

$

 —

$

1.1

 —

Receipt of excess cash distributions 

(15.3)

 —

 —

15.3

 —

 —

Impairment loss - held for sale (4)

(14.4)

 —

 —

 —

14.4

 —

Expenses on sale of NCM common units

 —

 —

 —

1.4

1.4

 —

Sale of NCM common units

(128.3)

 —

1.7

156.8

(30.2)

 —

Equity in earnings

3.2

 —

0.1

 —

(3.3)

 —

Amortization of ESA

 —

10.9

 —

 —

 —

(10.9)

For the period ended or balance as of September 30, 2018

$

 —

$

(567.7)

$

 —

$

173.5

$

(16.6)

$

(10.9)

(1)

The following table represents AMC’s investment in NCM, Inc. common shares and NCM common membership units including units received under the Common Unit Adjustment Agreement dated as of February 13, 2007:

Common

Membership Units

Common Shares

Tranche 1

Tranche 2 (a)

NCM, Inc. (5)

Beginning balance at December 31, 2012

17,323,782

 —

 —

Additional units received in the quarter ended June 30, 2013

 —

1,728,988

 —

Additional units received in the quarter ended June 30, 2014

 —

141,731

 —

Additional units received in the quarter ended June 30, 2015

 —

469,163

 —

Additional units received in the quarter ended December 31, 2015

 —

4,399,324

 —

Units exchanged for NCM, Inc. shares in December 2015

 —

(200,000)

200,000

Additional units received in the quarter ended March 31, 2017

 —

18,787,315

 —

Surrender of units for transferred theatres in March 2017

 —

(2,850,453)

 —

Surrender of units for exclusivity waiver in March 2017

 —

(1,807,220)

 —

Conversion of units to NCM, Inc. common shares in September 2017

 —

(14,600,000)

14,600,000

Sale of NCM, Inc. common shares in September 2017

 —

 —

(14,800,000)

Conversion of units to NCM, Inc. common shares in October 2017

 —

(1,000,000)

1,000,000

Surrender of units in the quarter ended March 31, 2018

 —

(915,150)

 —

Sale of NCM, Inc. common shares in June 2018

 —

 —

(1,000,000)

Sale of NCM common units in July 2018

(17,323,782)

(4,153,698)

 —

Ending balance at September 30, 2018

 —

 —

 —

(a)

The additional units received (surrendered) in June 2013, June 2014, June 2015, December 2015, March 2017, and March 2018 were measured at fair value (Level 1) using NCM, Inc.’s stock price of $15.22,  $15.08,  $14.52,  $15.75, $12.52,  and $5.64, respectively.

(2)

Represents the unamortized portion of the ESA with NCM. Such amounts are being amortized to other theatre revenues over the remainder of the 30-year term of the ESA ending in 2037. See Note 1–Basis of Presentation and Note 2–Revenue Recognition for information on the effects of adopting ASC 606.

(3)

Excludes a lower of carrying value or fair value impairment loss of $1.6 million related to the Company’s common stock investment in NCM, Inc. See Note 9–Fair Value Measurements for further information regarding a lower of carrying value or fair value impairment losses.

(4)

The Company recorded an impairment loss on held-for-sale units and shares for NCM, Inc. of $1.6 million and NCM of $14.4 million for a total impairment of $16.0 million during the three months ended March 31, 2018. The charges reflect recording our units and shares at the publicly quoted per share price on March 31, 2018 of $5.19. See Note 9–Fair Value Measurements for further information regarding a lower of carrying value or fair value impairment loss.

(5)

The following table represents AMC’s investment in NCM, Inc. common shares.

Cash

NCM Inc.

Investment in

Received

Equity in

(In millions)

NCM Inc.

(Paid)

(Earnings) Loss

Ending balance December 31, 2017

$

6.8

$

 —

$

 —

Held-for-sale impairment loss (4)

(1.6)

 —

1.6

Expenses from the sale of NCM Inc. common shares

 —

(0.1)

0.1

Dividend received NCM, Inc. common shares

(0.3)

0.3

 —

Sale of NCM Inc. common shares

(4.9)

7.2

(2.3)

Ending balance at September 30, 2018

$

 —

$

7.4

$

(0.6)

As of

As of

(In millions)

September 30, 2018

December 31, 2017

Due from DCM for on-screen advertising revenue

$

0.7

$

4.6

Three Months Ended

Nine Months Ended

(In millions)

September 30, 2018

September 30, 2017

September 30, 2018

September 30, 2017

DCM screen advertising revenues

$

4.2

$

4.8

$

13.4

$

14.3

As of

As of

(In millions)

September 30, 2018

December 31, 2017

Due to AC JV for Fathom Events programming

1.2

0.5

Three Months Ended

Nine Months Ended

(In millions)

September 30, 2018

September 30, 2017

September 30, 2018

September 30, 2017

Film exhibition costs:

Gross exhibition cost on Fathom Events programming

$

3.5

$

2.2

$

8.5

$

9.0

As of

As of

(In millions)

September 30, 2018

December 31, 2017

Due from Nordic JVs

$

3.8

$

5.7

Due to Nordic JVs for management services

2.2

2.5