View Filing Data

Administrative and other costs

40.9

5.5

4.7

Administrative fee - managing member

^[2]

3.2

2.9

Depreciation and amortization

8.0

7.8

Total

101.1

57.4

OPERATING (LOSS) INCOME

(24.2)

12.8

NON-OPERATING EXPENSES:

Interest on borrowings

13.1

Interest income (including $0.3 and $0.3 from founding members, respectively)

(0.3)

Amortization of terminated derivatives

1.6

2.5

Other non-operating expense

0.1

Total

14.5

15.4

LOSS BEFORE INCOME TAXES

(38.7)

(2.6)

Income tax expense

0.2

NET LOSS

$ (38.7)

$ (2.8)

[1]

Comprised of payments per theatre attendee, payments per digital screen with respect to the founding member theatres included in the Company’s network and payments for access to higher quality digital cinema equipment.

[2]

Pursuant to the Management Services Agreement between NCM, Inc. and NCM LLC, NCM, Inc. provides certain specific management services to NCM LLC, including the services of the President and Chief Executive Officer, President of Sales and Marketing, Interim Co-Chief Financial Officers, Executive Vice President and Chief Operations Officer and Chief Technology Officer and Executive Vice President and General Counsel. In exchange for these services, NCM LLC reimburses NCM, Inc. for compensation paid to the officers (including share based compensation) and other expenses of the officers and for certain out-of-pocket costs.

Statements Of Cash Flows - USD ($) $ in Millions	3 Months Ended
Statements Of Cash Flows - USD ($) $ in Millions	Apr. 02, 2015	Mar. 27, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (38.7)	$ (2.8)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8.0	7.8
Non-cash share-based compensation	1.7	1.2
Amortization of terminated derivatives	1.6	2.5
Amortization of debt issuance costs	0.6	0.7
Other	(0.1)	0.0
Changes in operating assets and liabilities:
Receivables, net	35.2	35.0
Accounts payable and accrued expenses	0.6	(15.3)
Amounts due to founding members and managing member	(1.2)	2.1
Other, net	0.9	(0.6)
Net cash provided by operating activities	8.6	30.6
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(2.0)	(2.1)
Purchases of intangible assets from network affiliates	(0.9)	(0.5)
Net cash used in investing activities	(2.9)	(2.6)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings	96.0	49.0
Repayments of borrowings	(50.0)	(32.0)
Founding member integration payments	0.8	0.7
Distributions to founding members and managing member	(60.6)	(57.5)
Unit settlement for share-based compensation	0.4	0.5
Net cash used in financing activities	(13.4)	(39.3)
CHANGE IN CASH AND CASH EQUIVALENTS	(7.7)	(11.3)
CASH AND CASH EQUIVALENTS:
Beginning of period	10.2	13.3
End of period	2.5	2.0
Supplemental disclosure of non-cash financing and investing activity:
Purchase of an intangible asset with NCM LLC equity	31.4	16.4
Accrued distributions to founding members and managing member		11.5
Increase in cost and equity method investments	1.6
Supplemental disclosure of cash flow information:
Cash paid for interest	10.3	10.2
Cash paid for income taxes, net of refunds	$ 0.1	$ 0.2

The Company	3 Months Ended
The Company	Apr. 02, 2015
The Company [Abstract]
The Company	1.THE COMPANY Description of Business National CineMedia, LLC (“NCM LLC”, “the Company” or “we”) commenced operations on April 1, 2005 and is owned by National CineMedia, Inc. (“NCM, Inc.”, “manager” or “managing member”), American Multi-Cinema, Inc. and AMC ShowPlace Theatres, Inc. (“AMC”), wholly owned subsidiaries of AMC Entertainment, Inc., Regal Cinemas, Inc. and Regal CineMedia Holdings, LLC, wholly owned subsidiaries of Regal Entertainment Group (“Regal”) and Cinemark Media, Inc. and Cinemark USA, Inc., wholly owned subsidiaries of Cinemark Holdings, Inc. (“Cinemark”). AMC, Regal and Cinemark and their affiliates are referred to in this document as “founding members”. NCM LLC operates the largest digital in-theatre network in North America, allowing NCM LLC to sell advertising (the “Services”) under long-term exhibitor services agreements (“ESAs”) with the founding members and certain third-party theatre circuits under long-term network affiliate agreements referred to in this document as “network affiliates”, which have terms from three to twenty years. As of April 2, 2015, NCM LLC had 130,648,539 common membership units outstanding, of which 58,944,045 (45.1%) were owned by NCM, Inc., 26,409,784 (20.2%) were owned by Regal, 25,631,046 (19.6%) were owned by Cinemark and 19,663,664 (15.1%) were owned by AMC. The membership units held by the founding members are exchangeable into NCM, Inc. common stock on a one-for-one basis. Recent Transactions On May 5, 2014, NCM, Inc. entered into an Agreement and Plan of Merger (the “Merger Agreement”) to merge with Screenvision, LLC (“Screenvision”). On November 3, 2014, the Department of Justice filed an antitrust lawsuit seeking to enjoin the merger. On March 16, 2015, NCM, Inc. announced the termination of the Merger Agreement. The antitrust lawsuit has been dismissed. After the Merger Agreement was terminated, NCM LLC reimbursed NCM, Inc. for certain expenses pursuant to an indemnification agreement among NCM LLC, NCM, Inc. and the founding members. During the three months ended April 2, 2015, the Company paid Screenvision an approximate $26.8 million termination payment on behalf of NCM, Inc. This payment was $2 million lower than the reverse termination fee contemplated by the Merger Agreement. During the three months ended April 2, 2015, the Company also either paid or reimbursed NCM, Inc. for the legal and other merger-related costs of approximately $14.1 million ($7.5 million incurred during the year ended January 1, 2015 and approximately $6.6 million incurred during the three months ended April 2, 2015). NCM, Inc. and the founding members each bore a pro rata portion of the merger termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC. Basis of Presentation The Company has prepared the unaudited Condensed Financial Statements and related notes of NCM LLC in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures typically included in an annual report have been condensed or omitted for this quarterly report. The balance sheet as of January 1, 2015 is derived from the audited financial statements of NCM LLC. Therefore, the unaudited Condensed Financial Statements should be read in conjunction with the NCM LLC audited Financial Statements and notes thereto included in the Company’s annual report on Form 10-K filed for the fiscal year ended January 1, 2015. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly in all material respects the financial position, results of operations and cash flows for all periods presented have been made. The Company’s business is seasonal and for this and other reasons operating results for interim periods may not be indicative of the Company’s full year results or future performance. As a result of the various related party agreements discussed in Note 3—Related Party Transactions, the operating results as presented are not necessarily indicative of the results that might have occurred if all agreements were with non-related third parties. The Company manages its business under one reportable segment: advertising. Estimates—The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to the reserve for uncollectible accounts receivable and share-based compensation. Actual results could differ from those estimates. Significant Accounting Policies The Company’s annual financial statements included in its Form 10-K filed for the fiscal year ended January 1, 2015 contain a complete discussion of the Company’s significant accounting policies. Following is additional information related to the Company’s accounting policies. Concentration of Credit Risk and Significant Customers—Bad debts are provided for using the allowance for doubtful accounts method based on historical experience and management’s evaluation of outstanding receivables at the end of the period. Receivables are written off when management determines amounts are uncollectible. Trade accounts receivable are uncollateralized and represent a large number of geographically dispersed debtors. The collectability risk with respect to national and regional advertising is reduced by the fact that the majority of accounts receivable are with large, national advertising agencies that have strong reputations in the advertising industry and clients with stable financial positions. The Company has smaller contracts with thousands of local clients that are not individually significant. As of April 2, 2015 and January 1, 2015, there were no advertising agency groups or individual customers through which the Company sources national advertising revenue representing more than 10% of the Company’s outstanding gross receivable balance. During the three months ended April 2, 2015, there were no customers that accounted for more than 10% of revenue, and during the three months ended March 27, 2014, revenue related to advertisements of NCM LLC’s founding members’ beverage supplier accounted for 13.3% of total revenue. Share-Based Compensation—The management services agreement between NCM LLC and NCM, Inc. provides that NCM LLC may participate in the NCM, Inc. Equity Incentive Plan. NCM, Inc. has issued stock options, restricted stock and restricted stock units under the NCM, Inc. Equity Incentive Plan. In 2015 and 2014, NCM, Inc. did not grant stock options. In 2015 and 2014, restricted stock grants for Company officers vest upon the achievement of NCM, Inc. performance measures and service conditions, or only service conditions, while non-officer grants vest only upon the achievement of service conditions. Compensation expense of restricted stock that vests upon the achievement of NCM, Inc. performance measures is based on management’s financial projections and the probability of achieving the projections, which require considerable judgment. A cumulative adjustment is recorded to share-based compensation expense in periods that management changes its estimate of the number of shares expected to vest. Ultimately, the Company adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. The recognized expense, including equity based compensation costs of NCM, Inc. employees, is included in the operating results of NCM LLC. Upon the exercise of options or the vesting of restricted stock, NCM, Inc. has the right to acquire from NCM LLC a number of common units equal to the number of NCM, Inc. shares being issued. In consideration for such units, NCM, Inc. contributes to NCM LLC the consideration received for the exercise of options or vesting of shares of restricted stock. During the three months ended April 2, 2015 and March 27, 2014, NCM, Inc. acquired 193,119 and 197,209 units, respectively, due to the vesting of restricted stock and restricted stock units and exercise of stock options and contributed $0.4 million and $0.5 million to NCM LLC for the three months ended April 2, 2015 and March 27, 2014, respectively. In connection with NCM, Inc.’s March 2014 special cash dividend of $0.50 per share and pursuant to the antidilution adjustment terms of NCM, Inc.’s Equity Incentive Plan, the exercise price and the number of shares of common stock subject to options held by NCM, Inc.’s option holders were adjusted to prevent dilution and restore their economic value that existed immediately before the special dividend. The antidilution adjustments made with respect to such options resulted in a decrease in the range of exercise prices from $5.35 - $24.68 per share to $5.18 - $23.90 per share and an increase in the aggregate number of shares issuable upon exercise of such options by 98,589 shares, or 3.3%, of previously outstanding options. The number of shares authorized under the Equity Incentive Plan increased by an equivalent number of shares. There were no accounting consequences for the changes made to reduce the exercise prices and increase the number of underlying options as a result of the special cash dividend because the aggregate fair values of the awards immediately before and after the modifications were the same. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This guidance will be effective for annual periods beginning after December 15, 2017 and early adoption is permitted no earlier than fiscal years beginning after December 15, 2016. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its unaudited Condensed Financial Statements or notes thereto, as well as, which transition method it intends to use. In January 2015, the FASB issued Accounting Standards Update 2015-01, Income Statement Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”), which eliminates the concept of extraordinary items from GAAP. Under ASU 2015-01, reporting entities will no longer be required to assess whether an underlying event or transaction is extraordinary, however, presentation and disclosure guidance for items that are unusual in nature or occur infrequently are retained, and are expanded to include items that are both unusual in nature and infrequently occurring. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply ASU 2015-01 prospectively. A reporting entity may also apply ASU 2015-01 retrospectively to all periods presented in the financial statements. The Company expects to adopt this accounting guidance in its first quarter of 2016 and does not expect the application of ASU 2015-01 to have an impact in the unaudited Condensed Financial Statements or notes thereto. In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 amends current consolidation guidance by modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with variable interest entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect the application of ASU 2015-02 to have an impact in the unaudited Condensed Financial Statements or notes thereto. In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which provides guidance for simplifying the presentation of debt issuance costs. ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. This guidance will be effective for fiscal years beginning after December 15, 2015, and early adoption is permitted for financial statements that have not been previously issued. The standard requires application on a retrospective basis and represents a change in accounting principle. The Company expects to adopt this accounting guidance in its first quarter of 2016 and will present debt issuance costs as a reduction of debt, rather than an asset. The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its unaudited Condensed Financial Statements.

Related-Party Transactions

3 Months Ended

Apr. 02, 2015

Related-Party Transactions

3.RELATED PARTY TRANSACTIONS

Founding Member and Managing Member Transactions—In connection with NCM, Inc.’s initial public offering (“IPO”), the Company entered into several agreements to define and regulate the relationships among NCM LLC, NCM, Inc. and the founding members. They include the following:

ESAs. Under the ESAs, NCM LLC is the exclusive provider within the United States of advertising services in the founding members’ theatres (subject to pre-existing contractual obligations and other limited exceptions for the benefit of the founding members). The advertising services include the on-screen advertising of the FirstLook pre-show, use of the lobby entertainment network (“LEN”) and lobby promotions. Further, some advertising in the FirstLook pre-show is sold to the founding members to be used to satisfy the founding members’ on-screen advertising commitments under their beverage concessionaire agreements. In consideration for access to the founding members’ theatre attendees for on-screen advertising and use of the founding members’ theatres for the LEN and lobby promotions, the founding members receive a monthly theatre access fee.

Common Unit Adjustment Agreement. The common unit adjustment agreement provides a mechanism for adjusting membership units held by the founding members based on increases or decreases in the number of screens operated by each founding member.

Software License Agreement. At the date of NCM, Inc.’s IPO, NCM LLC was granted a perpetual, royalty-free license from the founding members to use certain proprietary software that existed at the time for the delivery of digital advertising and other content through the digital content network (“DCN”) to screens in the U.S. NCM LLC has made improvements to this software since NCM, Inc.’s IPO date and the Company owns those improvements, except for improvements that were developed jointly by NCM LLC and the founding members, if any.

Following is a summary of the transactions between the Company and the founding members (in millions):



	Three Months Ended
Included in the Condensed Statements of Loss:	April 2, 2015		March 27, 2014
Revenue:
Beverage concessionaire revenue (included in advertising revenue) (1)	$	7.6	$	9.4
Advertising inventory revenue (included in advertising revenue) (2)		0.1		0.1
Operating expenses:
Theatre access fee (3)		17.2		17.4
Purchase of movie tickets and concession products and rental of theatre space (included in selling and marketing costs) (4)		0.2		0.2
Administrative fee - managing member (5)		3.2		2.9
Non-operating expenses:
Interest income from notes receivable (included in interest income) (6)		0.3		0.3

__________

(1)

For the three months ended April 2, 2015 and March 27, 2014, the founding members purchased 60 seconds of on-screen advertising time (with a right to purchase up to 90 seconds) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a rate specified by the ESA at a 30 second equivalent cost per thousand (“CPM”).

(2)

The value of such purchases is calculated by reference to NCM LLC’s advertising rate card.

(3)

(4)

Used primarily for marketing to NCM LLC’s advertising clients.

(5)

(6)

On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (AC JV, LLC) owned 32% by each of the founding members and 4% by NCM LLC. In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member). The notes bear interest at a fixed rate of 5.0% per annum, compounded annually. Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing.



	As of
Included in the Condensed Balance Sheets:	April 2, 2015		January 1, 2015
Purchase of movie tickets and concession products (included in Prepaid expenses) (1)	$	0.2	$	-
Current portion of notes receivable - founding members (2)		4.2		4.2
Long-term portion of notes receivable - founding members (2)		16.6		16.6
Interest receivable on notes receivable (included in other current assets) (2)		0.3		-
Prepaid administrative fees to managing member (3)		0.7		0.7
Common unit adjustments and integration payments, net of amortization (included in intangible assets) (4)		484.5		458.3

__________

(1)

Used primarily for marketing to NCM LLC’s advertising clients.

(2)

Refer to the discussion of notes receivable from the founding members above.

(3)

(4)

Refer to Note 2—Intangible Assets for further information on common unit adjustments and integration payments.

On March 16, 2015, NCM, Inc. announced the termination of the Merger Agreement. After the Merger Agreement was terminated, NCM LLC reimbursed NCM, Inc. for certain expenses pursuant to an indemnification agreement among NCM LLC, NCM, Inc. and the founding members. During the three months ended April 2, 2015, the Company paid Screenvision an approximate $26.8 million termination payment on behalf of NCM, Inc. This payment was $2 million lower than the reverse termination fee contemplated by the Merger Agreement. During the three months ended April 2, 2015, the Company also either paid or reimbursed NCM, Inc. for the legal and other merger-related costs of approximately $14.1 million ($7.5 million incurred during the year ended January 1, 2015 and approximately $6.6 million incurred during the three months ended April 2, 2015). NCM, Inc. and the founding members each bore a pro rata portion of the termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC.

Pursuant to the terms of the NCM LLC Operating Agreement in place since the completion of NCM, Inc.’s IPO, the Company is required to make mandatory distributions on a proportionate basis to its members of available cash, as defined in the NCM LLC Operating Agreement, on a quarterly basis in arrears. Mandatory distributions of available cash for the three months ended April 2, 2015 and March 27, 2014 were as follows (in millions):



	Three Months Ended
	April 2, 2015		March 27, 2014
AMC	$	-	$	1.7
Cinemark		-		2.2
Regal		-		2.3
Total founding members		-		6.2
NCM, Inc.		-		5.3
Total	$	-	$	11.5

Due to the merger termination fee and related merger expenses, the mandatory distributions of available cash by the Company to its founding members and NCM, Inc. for the three months ended April 2, 2015 was calculated as negative $25.5 million ($14.0 million for the founding members and $11.5 million for NCM, Inc.). Therefore, there will be no payment made for the second quarter of 2015. Under the terms of the NCM LLC Operating Agreement, this negative amount will be netted against the available cash distributions for the second quarter of 2016, which will be paid in the third quarter of 2016. Until the settlement in the third quarter of 2016, the remaining merger-related costs will be funded through borrowings on the NCM LLC revolving credit facility.

Amounts due to founding members as of April 2, 2015 were comprised of the following (in millions):



	AMC		Cinemark		Regal		Total
Theatre access fees, net of beverage revenues	$	0.9	$	0.9	$	1.4	$	3.2
Cost and other reimbursement		(0.2)		(0.1)		-		(0.3)
Total amounts due to founding members	$	0.7	$	0.8	$	1.4	$	2.9

Amounts due to founding members as of January 1, 2015 were comprised of the following (in millions):



	AMC		Cinemark		Regal		Total
Theatre access fees, net of beverage revenues	$	0.8		0.8		1.2	$	2.8
Cost and other reimbursement		(0.6)		(0.2)		-		(0.8)
Distributions payable to founding members		9.1		11.6		12.2		32.9
Total amounts due to founding members	$	9.3	$	12.2	$	13.4	$	34.9

Amounts due to/from managing member were comprised of the following (in millions):



	As of
	April 2, 2015		January 1, 2015
Distributions payable to managing member	$	-	$	27.7
Cost and other reimbursement		(5.7)		(4.1)
Total amounts due (from) to managing member	$	(5.7)	$	23.6

AC JV, LLC Transactions—In December 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company, AC JV, LLC, owned 32% by each of the founding members and 4% by NCM LLC. The Company accounts for its investment in AC JV, LLC under the equity method of accounting in accordance with ASC 323-30, Investments—Equity Method and Joint Ventures (“ASC 323-30”) because AC JV, LLC is a limited liability company with the characteristics of a limited partnership and ASC 323-30 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 investment in AC JV, LLC was $1.4 million and $1.3 million as of April 2, 2015 and January 1, 2015, respectively. Equity in earnings from AC JV, LLC was $0.1 million and $0.0 million for the three months ended April 2, 2015 and March 27, 2014, respectively and is included in non-operating expenses in the unaudited Condensed Statements of Income.

Related Party Affiliates—NCM LLC enters into network affiliate agreements with network affiliates for NCM LLC to provide in-theatre advertising at theatre locations that are owned by companies that are affiliates of certain of the founding members or directors of NCM, Inc. Related party affiliate agreements are entered into at terms that are similar to those of the Company’s other network affiliates. The Company has an agreement with Starplex Operating L.P. (“Starplex”), an affiliate of one of NCM, Inc.’s former directors, who served on NCM, Inc.’s board of directors during 2014. During the three months ended March 27, 2014, there was approximately $0.5 million included in advertising operating costs related to Starplex, and there was approximately $0.9 million of accounts payable with Starplex as of January 1, 2015. Following the director’s resignation from NCM, Inc.’s board of directors in 2014, Starplex is no longer a related party.

Other Transactions—The Company has an agreement with an interactive media company to sell some of its online inventory. One of NCM, Inc.’s directors is also a director of this media company. During the three months ended April 2, 2015 and March 27, 2014, this company generated approximately $0.0 million and $0.1 million, respectively, in revenue for NCM LLC and there was approximately $0.3 million and $0.3 million of accounts receivable due from this company as of April 2, 2015 and January 1, 2015, respectively.

NCM LLC has an agreement with AEG Live, an affiliate of The Anschutz Corporation, for AEG Live to showcase musical artists in NCM LLC’s FirstLook preshow. During the three months ended April 2, 2015 and March 27, 2014, NCM LLC received approximately $0.4 million and $0.0 million, respectively, in revenue from AEG Live and as of April 2, 2015 and January 1, 2015, had $0.5 million and $0.4 million, respectively, of accounts receivable from AEG Live.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Borrowings

3 Months Ended

Apr. 02, 2015

Borrowings [Abstract]

Borrowings

4.BORROWINGS

The following table summarizes the Company’s total outstanding debt as of April 2, 2015 and January 1, 2015 and the significant terms of its borrowing arrangements (in millions):



	Outstanding Balance as of
Borrowings	April 2, 2015		January 1, 2015		Maturity Date	Interest Rate
Revolving Credit Facility	$	68.0	$	22.0	November 26, 2019	(1)
Term Loans		270.0		270.0	November 26, 2019	(1)
Senior Unsecured Notes		200.0		200.0	July 15, 2021	7.875%
Senior Secured Notes		400.0		400.0	April 15, 2022	6.000%
Total	$	938.0	$	892.0

____________

(1)

The interest rates on the revolving credit facility and term loan are described below.

Senior Secured Credit Facility—As of April 2, 2015 and January 1, 2015, the Company’s senior secured credit facility consisted of a $135.0 million revolving credit facility and a $270.0 million term loan.

Revolving Credit Facility—The revolving credit facility portion of the Company’s total borrowings is available, subject to certain conditions, for general corporate purposes of the Company in the ordinary course of business and for other transactions permitted under the senior secured credit facility, and a portion is available for letters of credit.

As of April 2, 2015, the Company’s total availability under the revolving credit facility was $67.0 million. The unused line fee is 0.50% per annum. Borrowings under the revolving credit facility bear interest at the Company’s option of either the LIBOR index plus an applicable margin or the base rate (Prime Rate or the Federal Funds Effective Rate, as defined in the senior secured credit facility) plus an applicable margin. The applicable margin for the revolving credit facility is determined quarterly and is subject to adjustment based upon a consolidated net senior secured leverage ratio for the Company (the ratio of secured funded debt less unrestricted cash and cash equivalents, over a non-GAAP measure defined in the senior secured credit facility). The weighted-average interest rate on the outstanding balance on the revolving credit facility as of April 2, 2015 was 2.42%.

Term Loans—The interest rate on the term loans is a rate chosen at the Company’s option of either the LIBOR index plus 2.75% or the base rate (Prime Rate or the Federal Funds Effective Rate, as defined in the senior secured credit facility) plus 1.75%. The weighted-average interest rate on the term loans as of April 2, 2015 was 2.93%. Interest on the term loans is currently paid monthly.

The senior secured credit facility contains a number of covenants and financial ratio requirements, with which the Company was in compliance as of April 2, 2015, including maintaining a consolidated net senior secured leverage ratio of equal to or less than 6.5 times on a quarterly basis. In addition, there are no borrower distribution restrictions as long as the Company’s consolidated net senior secured leverage ratio is below 6.5 times and the Company is in compliance with its debt covenants. As of April 2, 2015, the Company’s consolidated net senior secured leverage ratio was 3.6 times (versus the covenant of 6.5 times).

Senior Unsecured Notes due 2021—On July 5, 2011, the Company completed a private placement of $200.0 million in aggregate principal amount of 7.875% Senior Unsecured Notes (“Senior Unsecured Notes”) for which the registered exchange offering was completed on September 22, 2011. The Senior Unsecured Notes pay interest semi-annually in arrears on January 15 and July 15 of each year, which commenced January 15, 2012. The notes are subordinated to all existing and future secured debt, including indebtedness under the Company’s existing senior secured credit facility and the Senior Secured Notes defined below. The Senior Unsecured Notes contain certain non-maintenance covenants with which the Company is in compliance as of April 2, 2015.

Senior Secured Notes due 2022—On April 27, 2012, the Company completed a private placement of $400.0 million in aggregate principal amount of 6.00% Senior Secured Notes (the “Senior Secured Notes”) for which the registered exchange offering was completed on November 26, 2012. The Senior Secured Notes pay interest semi-annually in arrears on April 15 and October 15 of each year, which commenced October 15, 2012. The Senior Secured Notes are senior secured obligations of the Company, rank the same as the Company’s senior secured credit facility, subject to certain exceptions, and share in the same collateral that secures the Company’s obligations under the senior secured credit facility. The Senior Secured Notes contain certain non-maintenance covenants with which the Company is in compliance as of April 2, 2015.

Fair Value Measurements

3 Months Ended

Apr. 02, 2015

Fair Value Measurements [Abstract]

Fair Value Measurements

6.FAIR VALUE MEASUREMENTS

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

Non-Recurring Measurements—Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These assets include long-lived assets, intangible assets, cost and equity method investments, notes receivable and borrowings.

Long-Lived Assets, Intangible Assets, Other Investments and Notes Receivable—The Company regularly reviews long-lived assets (primarily property, plant and equipment), intangible assets, investments accounted for under the cost or equity method and notes receivable for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. When the estimated fair value is determined to be lower than the carrying value of the asset, an impairment charge is recorded to write the asset down to its estimated fair value.

Other investments consisted of the following (in millions):



	As of
	April 2, 2015		January 1, 2015
Investment in AC JV, LLC (1)	$	1.4	$	1.3
Other investments (2)		2.8		1.2
Total	$	4.2	$	2.5

___________

(1)

Refer to Note 3—Related Party Transactions.

(2)

During 2014 and the first quarter of 2015, the Company received equity securities in privately held companies as consideration for a portion of advertising contracts. The equity securities were accounted for under the cost method and represent an ownership of less than 20%. The Company does not exert significant influence of these companies’ operating or financial activities.

The fair value of the investments has not been estimated as of April 2, 2015 and January 1, 2015 as there were no identified events or changes in the circumstances that had a significant adverse effect on the fair value of the investments and it is not practicable to do so because the equity securities are not in publicly traded companies. As the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, they have been classified as Level 3 in the fair value hierarchy.

As of April 2, 2015 and January 1, 2015, the Company had notes receivable totaling $20.8 million and $20.8 million, respectively from its founding members related to the sale of Fathom Events, as described in Note 3—Related Party Transactions. These notes were valued using comparative market multiples. There were no identified events or changes in circumstances that had a significant adverse effect on the fair value of the notes receivable. The notes are classified as Level 3 in the fair value hierarchy as the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs.

Borrowings—The carrying amount of the revolving credit facility is considered a reasonable estimate of fair value due to its floating-rate terms. The estimated fair values of the Company’s financial instruments where carrying values do not approximate fair value were as follows (in millions):



	As of April 2, 2015				As of January 1, 2015
	Carrying Value		Fair Value (1)		Carrying Value		Fair Value (1)
Term Loans	$	270.0	$	267.3	$	270.0	$	257.9
Senior Unsecured Notes		200.0		212.8		200.0		210.8
Senior Secured Notes		400.0		413.3		400.0		400.8

(1)

The Company has estimated the fair value on an average of at least two non-binding broker quotes and the Company’s analysis. If the Company were to measure the borrowings in the above table at fair value on the balance sheet they would be classified as Level 2.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Instruments And Hedging Activities

3 Months Ended

Apr. 02, 2015

Derivative Instruments And Hedging Activities [Abstract]

Derivative Instruments And Hedging Activities

7.derivative instruments AND HEDGING ACTIVITIES

During 2012, the Company terminated interest rate swap agreements that were used to hedge its interest rate risk associated with its term loan. Following the termination of the swap agreements, the variable interest rate on the Company’s $270.0 million term loan is unhedged and as of April 2, 2015 and January 1, 2015, the Company did not have any outstanding derivative assets or liabilities.

A portion of the breakage fees paid to terminate the swap agreements was for swaps in which the underlying debt remained outstanding. The balance in AOCI related to these swaps was fixed and was amortized into earnings over the remaining life of the original interest rate swap agreement, or February 13, 2015. The Company considered the guidance in ASC 815, Derivatives and Hedging which states that amounts in AOCI shall be reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. As of April 2, 2015, there were no amounts outstanding related to these discontinued cash flow hedges.

The changes in AOCI by component for the three months ended April 2, 2015 and March 27, 2014 were as follows (in millions):


	Three Months Ended
	April 2, 2015		March 27, 2014		Income Statement Location
Balance at beginning of period	$	(1.6)	$	(11.6)
Amounts reclassified from AOCI:
Amortization on discontinued cash flow hedges		1.6		2.5	Amortization of terminated derivatives
Total amounts reclassified from AOCI		1.6		2.5
Net other comprehensive income		1.6		2.5
Balance at end of period	$	-	$	(9.1)

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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+ Details

The Company (Policy)	3 Months Ended
The Company (Policy)	Apr. 02, 2015
The Company [Abstract]
Basis Of Presentation	incurred during the three months ended April 2, 2015). NCM, Inc. and the founding members each bore a pro rata portion of the merger termination fee and the related merger expenses based on their aggregate ownership percentages in NCM LLC. Basis of Presentation The Company has prepared the unaudited Condensed Financial Statements and related notes of NCM LLC in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures typically included in an annual report have been condensed or omitted for this quarterly report. The balance sheet as of January 1, 2015 is derived from the audited financial statements of NCM LLC. Therefore, the unaudited Condensed Financial Statements should be read in conjunction with the NCM LLC audited Financial Statements and notes thereto included in the Company’s annual report on Form 10-K filed for the fiscal year ended January 1, 2015. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly in all material respects the financial position, results of operations and cash flows for all periods presented have been made. The Company’s business is seasonal and for this and other reasons operating results for interim periods may not be indicative of the Company’s full year results or future performance. As a result of the various related party agreements discussed in Note 3—Related Party Transactions, the operating results as presented are not necessarily indicative of the results that might have occurred if all agreements were with non-related third parties. The Company manages its business under one reportable segment: advertising.
Estimates	Estimates—The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to the reserve for uncollectible accounts receivable and share-based compensation. Actual results could differ from those estimates.
Concentration Of Credit Risk And Significant Customers	Concentration of Credit Risk and Significant Customers—Bad debts are provided for using the allowance for doubtful accounts method based on historical experience and management’s evaluation of outstanding receivables at the end of the period. Receivables are written off when management determines amounts are uncollectible. Trade accounts receivable are uncollateralized and represent a large number of geographically dispersed debtors. The collectability risk with respect to national and regional advertising is reduced by the fact that the majority of accounts receivable are with large, national advertising agencies that have strong reputations in the advertising industry and clients with stable financial positions. The Company has smaller contracts with thousands of local clients that are not individually significant. As of April 2, 2015 and January 1, 2015, there were no advertising agency groups or individual customers through which the Company sources national advertising revenue representing more than 10% of the Company’s outstanding gross receivable balance. During the three months ended April 2, 2015, there were no customers that accounted for more than 10% of revenue, and during the three months ended March 27, 2014, revenue related to advertisements of NCM LLC’s founding members’ beverage supplier accounted for 13.3% of total revenue.
Share-Based Compensation	Share-Based Compensation—The management services agreement between NCM LLC and NCM, Inc. provides that NCM LLC may participate in the NCM, Inc. Equity Incentive Plan. NCM, Inc. has issued stock options, restricted stock and restricted stock units under the NCM, Inc. Equity Incentive Plan. In 2015 and 2014, NCM, Inc. did not grant stock options. In 2015 and 2014, restricted stock grants for Company officers vest upon the achievement of NCM, Inc. performance measures and service conditions, or only service conditions, while non-officer grants vest only upon the achievement of service conditions. Compensation expense of restricted stock that vests upon the achievement of NCM, Inc. performance measures is based on management’s financial projections and the probability of achieving the projections, which require considerable judgment. A cumulative adjustment is recorded to share-based compensation expense in periods that management changes its estimate of the number of shares expected to vest. Ultimately, the Company adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. The recognized expense, including equity based compensation costs of NCM, Inc. employees, is included in the operating results of NCM LLC. Upon the exercise of options or the vesting of restricted stock, NCM, Inc. has the right to acquire from NCM LLC a number of common units equal to the number of NCM, Inc. shares being issued. In consideration for such units, NCM, Inc. contributes to NCM LLC the consideration received for the exercise of options or vesting of shares of restricted stock. During the three months ended April 2, 2015 and March 27, 2014, NCM, Inc. acquired 193,119 and 197,209 units, respectively, due to the vesting of restricted stock and restricted stock units and exercise of stock options and contributed $0.4 million and $0.5 million to NCM LLC for the three months ended April 2, 2015 and March 27, 2014, respectively. In connection with NCM, Inc.’s March 2014 special cash dividend of $0.50 per share and pursuant to the antidilution adjustment terms of NCM, Inc.’s Equity Incentive Plan, the exercise price and the number of shares of common stock subject to options held by NCM, Inc.’s option holders were adjusted to prevent dilution and restore their economic value that existed immediately before the special dividend. The antidilution adjustments made with respect to such options resulted in a decrease in the range of exercise prices from $5.35 - $24.68 per share to $5.18 - $23.90 per share and an increase in the aggregate number of shares issuable upon exercise of such options by 98,589 shares, or 3.3%, of previously outstanding options. The number of shares authorized under the Equity Incentive Plan increased by an equivalent number of shares. There were no accounting consequences for the changes made to reduce the exercise prices and increase the number of underlying options as a result of the special cash dividend because the aggregate fair values of the awards immediately before and after the modifications were the same.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This guidance will be effective for annual periods beginning after December 15, 2017 and early adoption is permitted no earlier than fiscal years beginning after December 15, 2016. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its unaudited Condensed Financial Statements or notes thereto, as well as, which transition method it intends to use. In January 2015, the FASB issued Accounting Standards Update 2015-01, Income Statement Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”), which eliminates the concept of extraordinary items from GAAP. Under ASU 2015-01, reporting entities will no longer be required to assess whether an underlying event or transaction is extraordinary, however, presentation and disclosure guidance for items that are unusual in nature or occur infrequently are retained, and are expanded to include items that are both unusual in nature and infrequently occurring. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply ASU 2015-01 prospectively. A reporting entity may also apply ASU 2015-01 retrospectively to all periods presented in the financial statements. The Company expects to adopt this accounting guidance in its first quarter of 2016 and does not expect the application of ASU 2015-01 to have an impact in the unaudited Condensed Financial Statements or notes thereto. In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 amends current consolidation guidance by modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with variable interest entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect the application of ASU 2015-02 to have an impact in the unaudited Condensed Financial Statements or notes thereto. In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which provides guidance for simplifying the presentation of debt issuance costs. ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. This guidance will be effective for fiscal years beginning after December 15, 2015, and early adoption is permitted for financial statements that have not been previously issued. The standard requires application on a retrospective basis and represents a change in accounting principle. The Company expects to adopt this accounting guidance in its first quarter of 2016 and will present debt issuance costs as a reduction of debt, rather than an asset. The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its unaudited Condensed Financial Statements.

Related-Party Transactions (Tables)

3 Months Ended

Apr. 02, 2015

Schedule Of Related Party Transactions



	Three Months Ended
Included in the Condensed Statements of Loss:	April 2, 2015		March 27, 2014
Revenue:
Beverage concessionaire revenue (included in advertising revenue) (1)	$	7.6	$	9.4
Advertising inventory revenue (included in advertising revenue) (2)		0.1		0.1
Operating expenses:
Theatre access fee (3)		17.2		17.4
Purchase of movie tickets and concession products and rental of theatre space (included in selling and marketing costs) (4)		0.2		0.2
Administrative fee - managing member (5)		3.2		2.9
Non-operating expenses:
Interest income from notes receivable (included in interest income) (6)		0.3		0.3

__________

(1)

(2)

The value of such purchases is calculated by reference to NCM LLC’s advertising rate card.

(3)

(4)

Used primarily for marketing to NCM LLC’s advertising clients.

(5)

(6)



	As of
Included in the Condensed Balance Sheets:	April 2, 2015		January 1, 2015
Purchase of movie tickets and concession products (included in Prepaid expenses) (1)	$	0.2	$	-
Current portion of notes receivable - founding members (2)		4.2		4.2
Long-term portion of notes receivable - founding members (2)		16.6		16.6
Interest receivable on notes receivable (included in other current assets) (2)		0.3		-
Prepaid administrative fees to managing member (3)		0.7		0.7
Common unit adjustments and integration payments, net of amortization (included in intangible assets) (4)		484.5		458.3

__________

(1)

Used primarily for marketing to NCM LLC’s advertising clients.

(2)

Refer to the discussion of notes receivable from the founding members above.

(3)

(4)

Refer to Note 2—Intangible Assets for further information on common unit adjustments and integration payments.

Schedule Of Mandatory Distributions To Members



	Three Months Ended
	April 2, 2015		March 27, 2014
AMC	$	-	$	1.7
Cinemark		-		2.2
Regal		-		2.3
Total founding members		-		6.2
NCM, Inc.		-		5.3
Total	$	-	$	11.5

Schedule Of Amounts Due To Founding Members



	AMC		Cinemark		Regal		Total
Theatre access fees, net of beverage revenues	$	0.9	$	0.9	$	1.4	$	3.2
Cost and other reimbursement		(0.2)		(0.1)		-		(0.3)
Total amounts due to founding members	$	0.7	$	0.8	$	1.4	$	2.9

Amounts due to founding members as of January 1, 2015 were comprised of the following (in millions):



	AMC		Cinemark		Regal		Total
Theatre access fees, net of beverage revenues	$	0.8		0.8		1.2	$	2.8
Cost and other reimbursement		(0.6)		(0.2)		-		(0.8)
Distributions payable to founding members		9.1		11.6		12.2		32.9
Total amounts due to founding members	$	9.3	$	12.2	$	13.4	$	34.9

Schedule Of Amounts Due To/From Managing Member



	As of
	April 2, 2015		January 1, 2015
Distributions payable to managing member	$	-	$	27.7
Cost and other reimbursement		(5.7)		(4.1)
Total amounts due (from) to managing member	$	(5.7)	$	23.6

The Company (Narrative) (Details) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Apr. 02, 2015 USD ($) customer item $ / shares shares	Mar. 27, 2014 USD ($) $ / shares shares	Jan. 01, 2015 USD ($) item
General Company Information [Line Items]
Membership units exchangeable into common stock ratio	1
Payments for merger-related costs \| $	$ 14.1
Merger termination fee and related merger costs \| $	$ 40.9
Number of shares acquired due to vesting and exercise of options \| shares	193,119	197,209
Unit settlement for share-based compensation \| $	$ 0.4	$ 0.5
Screenvision, LLC [Member]
General Company Information [Line Items]
Merger termination payment \| $	26.8
Reverse termination fee, amount of lower payment \| $	$ 2.0
Special Dividend [Member]
General Company Information [Line Items]
Cash dividends declared, per share \| $ / shares	$ 0.50
Minimum [Member]
General Company Information [Line Items]
Range of terms, in years	3 years
Weighted average exercise price \| $ / shares		$ 5.35
Maximum [Member]
General Company Information [Line Items]
Range of terms, in years	20 years
Weighted average exercise price \| $ / shares		$ 24.68
Antidilution Adjustment [Member]
General Company Information [Line Items]
Increase in aggregate number of shares issuable upon exercise \| shares		98,589
Percentage of previously outstanding options		3.30%
Antidilution Adjustment [Member] \| Minimum [Member]
General Company Information [Line Items]
Weighted average exercise price \| $ / shares		$ 5.18
Antidilution Adjustment [Member] \| Maximum [Member]
General Company Information [Line Items]
Weighted average exercise price \| $ / shares		$ 23.90
NCM, LLC. [Member]
General Company Information [Line Items]
Common membership units outstanding \| shares	130,648,539
NCM, LLC. [Member] \| Screenvision, LLC [Member]
General Company Information [Line Items]
Merger termination fee and related merger costs \| $	$ 6.6
NCM Inc. [Member]
General Company Information [Line Items]
Common membership units outstanding \| shares	58,944,045
Percentage of common membership units outstanding	45.10%
NCM Inc. [Member] \| Screenvision, LLC [Member]
General Company Information [Line Items]
Merger termination fee and related merger costs \| $			$ 7.5
Regal [Member]
General Company Information [Line Items]
Common membership units outstanding \| shares	26,409,784
Percentage of common membership units outstanding	20.20%
Cinemark [Member]
General Company Information [Line Items]
Common membership units outstanding \| shares	25,631,046
Percentage of common membership units outstanding	19.60%
AMC [Member]
General Company Information [Line Items]
Common membership units outstanding \| shares	19,663,664
Percentage of common membership units outstanding	15.10%
Accounts Receivable [Member]
General Company Information [Line Items]
Number of advertising agency groups contributing to more than 10% of outstanding gross receivable balance \| item	0		0
Sales Revenue, Net [Member]
General Company Information [Line Items]
Number of customers contributing to more than 10% of revenue \| customer	0
Sales Revenue, Net [Member] \| NCM, LLC. [Member] \| Founding Member Advertising Revenue From Beverage Concessionaire Agreements [Member]
General Company Information [Line Items]
Percentage of revenue		13.30%

Related-Party Transactions (Narrative) (Details) - USD ($)

3 Months Ended

12 Months Ended

Jul. 02, 2015

Apr. 02, 2015

Mar. 27, 2014

Jan. 01, 2015

Dec. 26, 2013

Payments for merger-related costs

$ 14,100,000

40,900,000

Cash receivable declared

25,500,000

Equity in earnings of AC JV, LLC

$ 11,500,000

Investment in AC JV, LLC

^[1]

1,400,000

$ 1,300,000

100,000

Accounts payable, related party affiliates

100,000

1,000,000

Subsequent Event [Member]

Founding Members [Member]

$ 0

Cash receivable declared

14,000,000

6,200,000

Regal [Member]

2,300,000

Cinemark [Member]

2,200,000

AMC [Member]

NCM, LLC. [Member] | Interactive Media Company [Member]

1,700,000

NCM Inc. [Member]

Cash receivable declared

11,500,000

Related party revenue

100,000

Accounts receivable

300,000

NCM, LLC. [Member] | Starplex [Member]

Advertising operating costs, related party affiliates

500,000

Accounts payable, related party affiliates

900,000

NCM, LLC. [Member] | AEG Live [Member]

Related party revenue

400,000

$ 0.0

Accounts receivable

500,000

400,000

Screenvision, LLC [Member]

Merger termination payment

26,800,000

Reverse termination fee, amount of lower payment

2,000,000

Screenvision, LLC [Member] | NCM Inc. [Member]

Screenvision, LLC [Member] | NCM, LLC. [Member]

$ 7,500,000

AC JV, LLC [Member] | Regal [Member]

$ 6,600,000

AC JV, LLC [Member] | Cinemark [Member]

32.00%

AC JV, LLC [Member] | AMC [Member]

32.00%

AC JV, LLC [Member] | NCM, LLC. [Member]

32.00%

Selling and marketing costs

4.00%

[1]	Refer to Note 3—Related Party Transactions.

Related-Party Transactions (Summary Of Transactions Between The Company And The Founding Members And Managing Member Included In Statements Of Income) (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Apr. 02, 2015

Mar. 27, 2014

Dec. 26, 2013

Jan. 01, 2015

Advertising revenue

$ 76.9

$ 70.2

Theatre access fee

^[1]

17.2

17.4

16.0

15.0

Administrative fee - managing member

^[2]

3.2

2.9

Interest income from notes receivable (included in interest income)

^[3]

$ 0.3

On-screen advertising time purchased, in seconds

60 seconds

On-screen advertising time to satisfy agreement obligations

30 seconds

On-screen advertising time which founding members have right to purchase, in seconds

$ 20.8

Maximum [Member]

90 seconds

Beverage Concessionaire [Member]

Advertising revenue

^[4]

$ 7.6

$ 9.4

Advertising Inventory [Member]

Advertising revenue

^[5]

0.1

Purchase Of Movie Tickets And Concession Products And Rental Of Theatre Space [Member]

Selling and marketing costs

^[6]

$ 0.2

NCM, LLC. [Member] | AC JV, LLC [Member]

AMC [Member] | AC JV, LLC [Member]

4.00%

32.00%

Cinemark [Member] | AC JV, LLC [Member]

$ 8.3

32.00%

Regal [Member] | AC JV, LLC [Member]

$ 8.3

32.00%

Founding Members [Member] | NCM, LLC. [Member] | AC JV, LLC [Member]

$ 8.3

Interest rate on notes receivable

$ 25.0

5.00%

[1]	Comprised of payments per theatre attendee, payments per digital screen with respect to the founding member theatres included in the Company’s network and payments for access to higher quality digital cinema equipment.
[2]	Pursuant to the Management Services Agreement between NCM, Inc. and NCM LLC, NCM, Inc. provides certain specific management services to NCM LLC, including the services of the President and Chief Executive Officer, President of Sales and Marketing, Interim Co-Chief Financial Officers, Executive Vice President and Chief Operations Officer and Chief Technology Officer and Executive Vice President and General Counsel. In exchange for these services, NCM LLC reimburses NCM, Inc. for compensation paid to the officers (including share based compensation) and other expenses of the officers and for certain out-of-pocket costs.
[3]	On December 26, 2013, NCM LLC sold its Fathom Events business to a newly formed limited liability company (AC JV, LLC) owned 32% by each of the founding members and 4% by NCM LLC. In consideration for the sale, NCM LLC received a total of $25.0 million in promissory notes from its founding members (one-third or approximately $8.3 million from each founding member). The notes bear interest at a fixed rate of 5.0% per annum, compounded annually. Interest and principal payments are due annually in six equal installments commencing on the first anniversary of the closing.
[4]	For the three months ended April 2, 2015 and March 27, 2014, the founding members purchased 60 seconds of on-screen advertising time (with a right to purchase up to 90 seconds) from NCM LLC to satisfy their obligations under their beverage concessionaire agreements at a rate specified by the ESA at a 30 second equivalent cost per thousand (“CPM”).
[5]	The value of such purchases is calculated by reference to NCM LLC’s advertising rate card.
[6]	Used primarily for marketing to NCM LLC’s advertising clients.

Related-Party Transactions (Summary Of Transactions Between The Company And The Founding Members And Managing Member Included In Balance Sheet) (Details) - USD ($)
$ in Millions

Apr. 02, 2015

Jan. 01, 2015

Purchase of movie tickets and concession products (included in Prepaid expenses)

$ 3.5

$ 3.3

Current portion of notes receivable-founding members

^[1]

4.2

Long-term portion of notes receivable - founding members

^[1]

16.6

Interest receivable on notes receivable

^[1]

0.3

Prepaid administrative fees to managing member

^[2]

0.7

Common unit adjustments and integration payments, net of amortization (included in Intangible assets)

515.2

488.6

Common Unit Adjustments And Integration Payments [Member]

Common unit adjustments and integration payments, net of amortization (included in Intangible assets)

^[3]

484.5

$ 458.3

Purchase Of Movie Tickets And Concession Products And Rental Of Theatre Space [Member]

Purchase of movie tickets and concession products (included in Prepaid expenses)

^[4]

$ 0.2

[1]	Refer to the discussion of notes receivable from the founding members above.
[2]	The payments to NCM, Inc. for estimated management services related to employment are made one month in advance. NCM LLC also provides administrative and support services to NCM, Inc. such as office facilities, equipment, supplies, payroll, accounting and financial reporting at no charge. Based on the limited activities of NCM, Inc. as a standalone entity, the Company does not believe such unreimbursed costs are significant.
[3]	Refer to Note 2—Intangible Assets for further information on common unit adjustments and integration payments.
[4]	Used primarily for marketing to NCM LLC’s advertising clients.

Borrowings (Narrative) (Details)

3 Months Ended

Apr. 02, 2015

USD ($)

item

Jan. 01, 2015

USD ($)

Senior Secured Credit Facility [Member]

$ 938,000,000

$ 892,000,000

Senior secured leverage ratio | item

3.6

Revolving Credit Facility [Member]

Borrowing amount of credit facility

$ 135,000,000

^[1]

$ 68,000,000

22,000,000

Remaining borrowing capacity on credit facility

^[1]

Nov. 26, 2019

$ 67,000,000

Unused line fee, percent

0.50%

Weighted-average interest rate

2.42%

Term Loans [Member]

Debt instrument, face amount

^[1]

$ 270,000,000

270,000,000

$ 270,000,000

270,000,000

Weighted-average interest rate

^[1]

Nov. 26, 2019

2.93%

Term Loans [Member] | LIBOR [Member]

Basis spread on variable rate, percent

2.75%

Term Loans [Member] | Base Rate [Member]

Basis spread on variable rate, percent

1.75%

Senior Unsecured Notes [Member]

Debt instrument, face amount

$ 200,000,000

$ 200,000,000

Date of first required interest payment

Jul. 15, 2021

Stated interest rate

7.875%

Jan. 15, 2012

Senior Secured Notes [Member]

Debt instrument, face amount

$ 400,000,000

$ 400,000,000

Date of first required interest payment

Apr. 15, 2022

Stated interest rate

6.00%

Oct. 15, 2012

Maximum [Member] | Senior Secured Credit Facility [Member]