Edgar Filing: Cinemark Holdings, Inc.

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cnk-10q_20180630.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

Commission File Number: 001-33401

CINEMARK HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware		20-5490327
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3900 Dallas Parkway
Suite 500
Plano, Texas		75093
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (972) 665-1000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 31, 2018, 116,829,079 shares of common stock were issued and outstanding.

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

			Page
PART I. FINANCIAL INFORMATION

	Item 1.	Financial Statements	4

		Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017 (unaudited)	4

		Condensed Consolidated Statements of Income for the three and six months ended June 30, 2018 and 2017 (unaudited)	5

		Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2018 and 2017 (unaudited)	6

		Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017 (unaudited)	7

		Notes to Condensed Consolidated Financial Statements (unaudited)	8

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	26

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38

	Item 4.	Controls and Procedures	38

PART II. OTHER INFORMATION

	Item 1.	Legal Proceedings	39

	Item 1A.	Risk Factors	39

	Item 6.	Exhibits	40

SIGNATURES			41

Cautionary Statement Regarding Forward-Looking Statements

Certain matters within this Quarterly Report on Form 10Q include “forward–looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The “forward-looking statements” may include our current expectations, assumptions, estimates and projections about our business and our industry. They may include statements relating to future revenues, expenses and profitability, the future development and expected growth of our business, projected capital expenditures, attendance at movies generally or in any of the markets in which we operate, the number or diversity of popular movies released and our ability to successfully license and exhibit popular films, national and international growth in our industry, competition from other exhibitors and alternative forms of entertainment and determinations in lawsuits in which we are defendants. Forward-looking statements can be identified by the use of words such as “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future” and “intends” and similar expressions. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. For a description of the risk factors, please review the “Risk Factors” section or other sections in the Company’s Annual Report on Form 10-K filed February 23, 2018 and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by such risk factors. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data, unaudited)

	June 30,			December 31,
	2018			2017
Assets
Current assets
Cash and cash equivalents	$	504,712		$	522,547
Inventories		17,685			17,507
Accounts receivable		80,308			89,250
Current income tax receivable		4,815			11,730
Prepaid expenses and other		20,667			16,536
Total current assets		628,187			657,570

Theatre properties and equipment		3,362,779			3,328,589
Less: accumulated depreciation and amortization		1,545,042			1,500,535
Theatre properties and equipment, net		1,817,737			1,828,054

Other assets
Goodwill		1,281,170			1,284,079
Intangible assets - net		332,506			336,761
Investment in NCM		199,019			200,550
Investments in and advances to affiliates		145,081			120,045
Long-term deferred tax asset		4,050			4,067
Deferred charges and other assets - net		47,488			39,767
Total other assets		2,009,314			1,985,269

Total assets	$	4,455,238		$	4,470,893

Liabilities and equity

Current liabilities
Current portion of long-term debt	$	7,984		$	7,099
Current portion of capital lease obligations		26,671			25,511
Current income tax payable		6,850			5,509
Current liability for uncertain tax positions		3,650			11,873
Accounts payable and accrued expenses		394,679			418,921
Total current liabilities		439,834			468,913

Long-term liabilities
Long-term debt, less current portion		1,774,782			1,780,381
Capital lease obligations, less current portion		239,005			251,151
Long-term deferred tax liability		141,307			121,787
Long-term liability for uncertain tax positions		13,405			8,358
Deferred lease expenses		39,750			40,929
Deferred revenue - NCM		295,264			351,706
Other long-term liabilities		48,081			41,980
Total long-term liabilities		2,551,594			2,596,292

Commitments and contingencies (see Note 17)

Equity
Cinemark Holdings, Inc.'s stockholders' equity:
Common stock, $0.001 par value: 300,000,000 shares authorized, 121,449,393 shares issued and 116,829,079 shares outstanding at June 30, 2018 and 121,000,903 shares issued and 116,475,033 shares outstanding at December 31, 2017		121			121
Additional paid-in-capital		1,147,966			1,141,088
Treasury stock, 4,620,314 and 4,525,870 shares, at cost, at June 30, 2018 and December 31, 2017, respectively		(79,259	)		(76,354	)
Retained earnings		691,910			582,222
Accumulated other comprehensive loss		(309,306	)		(253,282	)
Total Cinemark Holdings, Inc.'s stockholders' equity		1,451,432			1,393,795
Noncontrolling interests		12,378			11,893
Total equity		1,463,810			1,405,688

Total liabilities and equity	$	4,455,238		$	4,470,893

The accompanying notes are an integral part of the condensed consolidated financial statements.

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data, unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenues
Admissions	$	508,870		$	449,880		$	961,494		$	926,349
Concession		305,306			262,322			567,078			530,546
Other		74,877			38,993			140,452			73,910
Total revenues		889,053			751,195			1,669,024			1,530,805

Cost of operations
Film rentals and advertising		287,206			246,556			528,121			499,374
Concession supplies		51,033			41,839			91,857			83,939
Salaries and wages		100,344			89,812			193,502			174,013
Facility lease expense		81,190			82,388			163,281			166,650
Utilities and other		115,602			91,053			225,034			179,410
General and administrative expenses		43,031			37,834			85,415			76,050
Depreciation and amortization		64,290			59,137			128,685			116,493
Impairment of long-lived assets		2,788			4,301			3,379			4,574
Loss on disposal of assets and other		16,901			54			20,840			888
Total cost of operations		762,385			652,974			1,440,114			1,301,391

Operating income		126,668			98,221			228,910			229,414

Other income (expense)
Interest expense		(28,466	)		(26,522	)		(55,581	)		(52,891	)
Loss on debt amendments		—			(246	)		(1,484	)		(246	)
Interest income		2,862			1,380			5,100			2,713
Foreign currency exchange gain (loss)		(5,199	)		(155	)		(3,821	)		1,434
Distributions from NCM		3,424			2,772			9,782			9,560
Interest expense - NCM		(4,913	)		—			(9,892	)		—
Equity in income of affiliates		6,414			5,805			15,050			15,865
Total other expense		(25,878	)		(16,966	)		(40,846	)		(23,565	)

Income before income taxes		100,790			81,255			188,064			205,849
Income taxes		18,326			29,445			43,423			73,845
Net income	$	82,464		$	51,810		$	144,641		$	132,004
Less: Net income attributable to noncontrolling interests		329			571			485			1,037
Net income attributable to Cinemark Holdings, Inc.	$	82,135		$	51,239		$	144,156		$	130,967

Weighted average shares outstanding
Basic		116,091			115,785			115,988			115,707
Diluted		116,268			116,072			116,238			116,020

Earnings per share attributable to Cinemark Holdings, Inc.'s common stockholders
Basic	$	0.70		$	0.44		$	1.23		$	1.12
Diluted	$	0.70		$	0.44		$	1.23		$	1.12

Dividends declared per common share	$	0.32		$	0.29		$	0.64		$	0.58

The accompanying notes are an integral part of the condensed consolidated financial statements.

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net income	$	82,464		$	51,810		$	144,641		$	132,004
Other comprehensive income (loss), net of tax
Other comprehensive income (loss) in equity method investments		(116	)		(95	)		20			103
Foreign currency translation adjustments		(56,248	)		(18,401	)		(56,044	)		(3,508	)
Total other comprehensive loss, net of tax		(56,364	)		(18,496	)		(56,024	)		(3,405	)
Total comprehensive income, net of tax		26,100			33,314			88,617			128,599
Comprehensive income attributable to noncontrolling interests		(329	)		(571	)		(485	)		(1,037	)
Comprehensive income attributable to Cinemark Holdings, Inc.	$	25,771		$	32,743		$	88,132		$	127,562

The accompanying notes are an integral part of the condensed consolidated financial statements.

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

	Six Months Ended June 30,
	2018			2017
Operating activities
Net income	$	144,641		$	132,004
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation		126,981			115,755
Amortization of intangible and other assets and favorable/unfavorable leases		1,704			738
Amortization of long-term prepaid rents		1,236			989
Amortization of debt issue costs		2,913			3,063
Loss on debt amendments		1,484			246
Amortization of deferred revenues, deferred lease incentives and other		(10,762	)		(7,923	)
Impairment of long-lived assets		3,379			4,574
Share based awards compensation expense		6,878			6,444
Loss on disposal of assets and other		20,840			888
Deferred lease expenses		(932	)		(722	)
Equity in income of affiliates		(15,050	)		(15,865	)
Deferred income tax expenses		7,669			14,515
Distributions from equity investees		16,255			14,919
Changes in assets and liabilities and other		(27,333	)		(33,935	)
Net cash provided by operating activities		279,903			235,690

Investing activities
Additions to theatre properties and equipment		(162,589	)		(182,800	)
Acquisitions of theatres in the U.S. and international markets, net of cash acquired		(11,508	)		(40,829	)
Proceeds from sale of theatre properties and equipment and other		2,135			14,521
Investment in joint ventures and other, net		(19,467	)		(466	)
Net cash used for investing activities		(191,429	)		(209,574	)

Financing activities
Dividends paid to stockholders		(74,723	)		(67,528	)
Payroll taxes paid as a result of stock withholdings		(2,905	)		(2,921	)
Repayments of long-term debt		(3,298	)		(1,427	)
Payment of debt issue costs		(5,103	)		(521	)
Fees paid related to debt amendments		(704	)		(246	)
Payments on capital leases		(12,377	)		(10,143	)
Other		—			(311	)
Net cash used for financing activities		(99,110	)		(83,097	)

Effect of exchange rate changes on cash and cash equivalents		(7,199	)		(75	)

Decrease in cash and cash equivalents		(17,835	)		(57,056	)

Cash and cash equivalents:
Beginning of period		522,547			561,235
End of period	$	504,712		$	504,179

Supplemental information (see Note 14)

The accompanying notes are an integral part of the condensed consolidated financial statements.

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

1.	The Company and Basis of Presentation

Cinemark Holdings, Inc. and subsidiaries (the “Company”) operates in the motion picture exhibition industry, with theatres in the United States (“U.S.”), Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay.

The accompanying condensed consolidated balance sheet as of December 31, 2017, which was derived from audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from these estimates. Majority-owned subsidiaries that the Company has control of are consolidated while those affiliates of which the Company owns between 20% and 50% and does not control are accounted for under the equity method. Those affiliates of which the Company owns less than 20% are generally accounted for under the cost method, unless the Company is deemed to have the ability to exercise significant influence over the affiliate, in which case the Company would account for its investment under the equity method. The results of these subsidiaries and affiliates are included in the condensed consolidated financial statements effective with their formation or from their dates of acquisition. Intercompany balances and transactions are eliminated in consolidation.

These condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and the notes thereto for the year ended December 31, 2017, included in the Annual Report on Form 10-K filed February 23, 2018 by the Company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be achieved for the full year.

2.	New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASC Topic 606”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASC Topic 606 replaces most existing revenue recognition guidance in U.S. generally accepted accounting principles. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from the contracts with customers. The Company adopted ASC Topic 606 effective January 1, 2018. See Note 3 for further discussion.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), (“ASU 2016-02”). The purpose of ASU 2016-02 is to provide financial statement users a better understanding of the amount, timing, and uncertainty of cash flows arising from leases. The adoption of ASU 2016-02 will result in the recognition of a right-of-use asset and a lease liability for most operating leases. New disclosure requirements include qualitative and quantitative information about the amounts recorded in the financial statements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 requires a modified retrospective transition by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective with the option to elect certain practical expedients. Early adoption is permitted. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, (“ASU 2018-10”). The amendments in ASU 2018-10 provide clarification of narrow aspects of the guidance issued in ASU 2016-02. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements, (“ASU 2018-11”). The amendments in ASU 2018-11 provide an additional transition method to adopt the amendments in ASU 2016-02. Under this new transition method, an entity initially applies the amendments in ASU 2016-02 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Under this transition method, an entity is not required to use the modified transition method described in ASU 2016-02. The Company plans to adopt the additional transition method provided in ASU 2018-11. The Company is currently evaluating the impact of ASU 2016-02, ASU 2018-10 and ASU 2018-11 on its condensed consolidated financial statements. The most significant impact of these amendments will be the recognition of new right-of-use assets and lease liabilities for assets related to leased theatres and certain leased equipment that are currently classified as operating leases. The Company will adopt the amendments in ASU 2016-02, ASU 2018-10 and ASU 2018-11 in the first quarter of 2019.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments – a consensus of the FASB Emerging Issues Task Force, (“ASU 2016-15”). The purpose of ASU 2016-15 is to

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

reduce the diversity in practice regarding how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within that year. A retrospective transition method should be used in the application of the amendments within ASU 2016-15. The Company adopted ASU 2016-15 effective January 1, 2018. As a result of the adoption of ASU 2016-15, cash paid of $246 related to the June 2017 amendment of the Company’s senior secured credit facility was reclassified from operating activities to financing activities for the six months ended June 30, 2017.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, (“ASU 2016-16”). The purpose of ASU 2016-16 is to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, including interim periods within that year. A modified retrospective transition method should be used in the application of the amendments within ASU 2016-16 with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. ASU 2016-16 did not have a material impact on the Company’s condensed consolidated financial statements.

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

3.	Revenue Recognition

Revenue Recognition Policy

The Company recognizes admissions and concession revenues when sales are made at the box office and concession stand, respectively. Other revenues include screen advertising, transactional fees and other ancillary revenues such as vendor marketing promotions and meeting rentals located in the Company’s theatres. The Company records proceeds from the sale of gift cards and other advanced sale-type certificates in current liabilities and recognizes admissions or concession revenue when a holder redeems the card or certificate. Additionally, the Company recognizes unredeemed gift cards and other advanced sale-type certificates, as a proportion of actual redemptions, as other revenues, which is an estimate primarily based on the Company’s historical experience with such cards and certificates.

Screen advertising revenues are generally recognized over the period that the related advertising is delivered on-screen or in-theatre. Advances collected on long-term screen advertising, concession and other contracts are recorded as deferred revenues. In accordance with the terms of the agreements, the advances collected on such contracts are recognized during the period in which the Company satisfies the related performance obligations, which may differ from the period in which the advances are collected. These advances are recognized on either a straight-line basis over the term of the contracts or as the Company has met its performance obligations in accordance with the terms of the contracts.

See additional revenue recognition policy considerations, updated for the adoption of ASC Topic 606, below.

Adoption of ASC Topic 606

The Company adopted ASC 606, Revenue from Contracts with Customers, effective January 1, 2018 under the modified retrospective method (cumulative-effect) and therefore, revenue amounts as presented on the condensed consolidated statements of income have not been adjusted for prior periods presented.

Changes to the way in which the Company recognizes revenue resulted in the following impacts to the condensed consolidated statements of income:

Recording of incremental other revenue and interest expense related to the significant financing component of the Company’s Exhibitor Services Agreement (“ESA”) with NCM, LLC (“NCM”). See further discussion below, including the estimated interest rates assumed in determining the amount of interest expense.

Deferral of a portion of admissions and concession revenues for transactions that include the issuance of loyalty points to customers. To determine the amount of revenues to defer upon issuance of points to customers under its points-based loyalty programs, the Company estimated the values of the rewards expected to be redeemed by its customers for those points. The estimates are based on the rewards that have historically been offered under the loyalty programs, which the Company believes is representative of the rewards to be offered in the future.

Increase in other revenues and an increase in utilities and other expenses due to presentation of transactional fees on a gross versus net basis.

Increase in other revenues due to the change in amortization methodology for deferred revenue – NCM that is now amortized on a straight-line basis and effective for the entire term of the ESA. As a result of the change in amortization method, the Company recorded a cumulative effect of accounting change adjustment of $40,526, net of taxes, in retained earnings on January 1, 2018 (see also Note 6).

The above noted changes increased (decreased) admissions, concession and other revenue for the three and six months ended June 30, 2018 as follows:

	Three Months Ended			Six Months Ended
	June 30, 2018			June 30, 2018
Admissions revenues	$	(1,898	)	$	(3,200	)
Concession revenues	$	(662	)	$	(1,207	)
Other revenues	$	32,710		$	60,169

The Company applied the practical expedient to exclude sales and other similar taxes collected from customers from its transaction price for purposes of recording revenues, as such revenues are presented net of such taxes.

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

Disaggregation of Revenue

The following table presents revenues for the three and six months ended June 30, 2018, disaggregated based on major type of good or service and by reportable operating segment.

	Three Months Ended						Six Months Ended
	June 30, 2018						June 30, 2018
	U.S.		International				U.S.		International
	Operating		Operating				Operating		Operating
Major Goods/Services	Segment ⁽¹⁾		Segment		Consolidated		Segment ⁽¹⁾		Segment		Consolidated
Admissions revenues	$	408,863	$	100,007	$	508,870	$	758,215	$	203,279	$	961,494
Concession revenues		249,618		55,688		305,306		453,368		113,710		567,078
Screen advertising and promotional revenues		21,051		15,446		36,497		39,230		29,715		68,945
Other revenues		29,542		8,838		38,380		54,604		16,903		71,507
Total revenues	$	709,074	$	179,979	$	889,053	$	1,305,417	$	363,607	$	1,669,024

(1)

U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 15 for additional information on intercompany eliminations.

The following table presents revenues for the three and six months ended June 30, 2018, disaggregated based on timing of revenue recognition (see Revenue Recognition Policy above).

	Three Months Ended						Six Months Ended
	June 30, 2018						June 30, 2018

	U.S.		International				U.S.		International
	Operating		Operating				Operating		Operating
	Segment ⁽¹⁾		Segment		Consolidated		Segment ⁽¹⁾		Segment		Consolidated
Goods and services transferred at a point in time	$	686,463	$	161,350	$	847,813	$	1,262,289	$	327,499	$	1,589,788
Goods and services transferred over time		22,611		18,629		41,240		43,128		36,108		79,236
Total	$	709,074	$	179,979	$	889,053	$	1,305,417	$	363,607	$	1,669,024

(1)

U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 15 for additional information on intercompany eliminations.

Deferred Revenues

The following table presents changes in the Company’s deferred revenues for the six months ended June 30, 2018.

Deferred Revenues	Deferred Revenue - NCM			Other Deferred Revenues ⁽¹⁾			Total
Balance at January 1, 2018	$	351,706		$	86,498		$	438,204
Impact of adoption of ASC Topic 606		(53,605	)		—			(53,605	)
Amounts recognized as accounts receivable		—			11,349			11,349
Cash received from customers in advance		—			53,398			53,398
Common units received from NCM (see Note 7)		5,012			—			5,012
Revenue recognized during period		(7,849	)		(64,996	)		(72,845	)
Foreign currency translation adjustments		—			(1,689	)		(1,689	)
Balance at June 30, 2018	$	295,264		$	84,560