|
As of |
|||||
|
December 26, 2013 |
December 27,2012 |
||||
|
Investment in AC JV, LLC (1) |
$ |
1.1 |
$ |
- |
|
|
Other investment (2) |
- |
0.8 | |||
|
Total |
$ |
1.1 |
$ |
0.8 | |
|
(1) |
On December 26, 2013, NCM LLC sold its Fathom Events business into a newly formed limited liability company (AC JV, LLC) owned 32% by each of NCM LLC’s founding members and 4% by NCM LLC, as described further in Note 2- Divestiture. The Company accounted for its investment in AC JV, LLC under the equity method of accounting in accordance with ASC 970-323 Investments – Equity Method and Joint Ventures (“ASC 970-323”) because AC JV, LLC is a limited liability company with the characteristics of a limited partnership and ASC 970-323 requires the use of equity method accounting unless the Company’s interest is so minor that it would have virtually no influence over partnership operating and financial policies. The Company concluded that its interest was more than minor under the accounting guidance despite the fact that NCM LLC does not have a representative on AC JV, LLC’s Board of Directors or any voting, consent or blocking rights with respect to the governance or operations of AC JV, LLC. The Company’s proportional share of equity in the investment will be recorded in the Consolidated Statements of Income. |
|
(2) |
During 2011, the Company received equity securities in a privately held company as consideration for an advertising contract. The equity securities are accounted for under the cost method and represent an ownership interest of less than 20%. The Company does not exert significant influence over the company’s operating or financial activities. The Company recorded an impairment charge of $0.8 million during the year ended December 26, 2013 to bring the fair value to $0.0 million, as described below. |