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<div> <div> 9.  OWNERSHIP CHANGES            The table below presents the changes in NCM, Inc.'s equity resulting from net income attributable to NCM, Inc. and transfers to or from noncontrolling interests (in millions): <div align="center"> <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; margin-left: 0px !important; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="80%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 262pt; padding-right: 0in; padding-top: 0in;" valign="top" width="349">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> Six Months Ended June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> Six Months Ended July 1, 2010 </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 262pt; padding-right: 0in; padding-top: 0in;" valign="top" width="349"> Net income attributable to NCM, Inc. </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="75"> $8.0</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="75"> $5.8</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 262pt; padding-right: 0in; padding-top: 0in;" valign="top" width="349"> Subsidiary equity issued (returned) for purchase of intangible asset </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; padding-top: 0in;" valign="top" width="75"> (2.7)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; padding-top: 0in;" valign="top" width="75"> 58.9</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 262pt; padding-right: 0in; padding-top: 0in;" valign="top" width="349"> Income tax and other impacts of subsidiary ownership changes</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; padding-top: 0in;" valign="top" width="75"> 1.0</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; padding-top: 0in;" valign="top" width="75"> (26.6)</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 262pt; padding-right: 0in; padding-top: 0in;" valign="top" width="349"> Change from net income attributable to NCM, Inc. and transfers from noncontrolling interests </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> $6.3</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 56.35pt; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> $38.1</td></tr></table></div>  </div></div>

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<div> 5.       BORROWINGS On February 13, 2007, concurrently with the closing of the IPO of NCM, Inc., NCM LLC entered into a senior secured credit facility with a group of lenders.  The facility consists of a six-year $80.0 million revolving credit facility and an eight-year, $725.0 million term loan facility.  The revolving credit facility portion 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 credit agreement, and a portion is available for letters of credit.  The obligations under the credit facility are secured by a lien on substantially all of the assets of NCM, LLC. The outstanding balance of the term loan facility at June 30, 2011 and December 30, 2010 was $725.0 million. The outstanding balance under the revolving credit facility at June 30, 2011 and December 30, 2010 was $35.0 million and $50.0 million, respectively.  As of June 30, 2011, the effective rate on the term loan was 5.3% including the effect of the interest rate swaps (both the swaps accounted for as hedges and those that are not).  The interest rate swaps hedged $550.0 million or 76% of the $725.0 million term loan at a fixed interest rate of 6.484% while the unhedged portion was at an interest rate of 1.75%.  The applicable margin on the term loan was lowered to 1.5% from 1.75% as a result of an upgrade of the corporate credit rating by the credit rating agencies specified in the credit agreement, in the first quarter of 2011.  The weighted-average interest rate on the unhedged revolver was 2.3%.  Commencing with the fourth fiscal quarter in fiscal year 2009, 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 NCM LLC and its subsidiaries (the ratio of secured funded debt less unrestricted cash and cash equivalents, over a non-GAAP measure defined in the credit agreement). The senior secured credit facility also contains a number of covenants and financial ratio requirements, with which the Company was in compliance at June 30, 2011, including the consolidated net senior secured leverage ratio.  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 borrower is in compliance with its debt covenants.  As of June 30, 2011, its consolidated net senior secured leverage ratio was 3.5 times, while the covenant was 6.5 times. Refer to Note 11 for discussion of the amendment of the senior secured credit facility and restructuring of debt. On March 19, 2009, the Company gave an $8.5 million note payable to Credit Suisse, Cayman Islands Branch ("Credit Suisse") with no stated interest rate to settle the $10.0 million contingent put obligation and to acquire the $20.7 million outstanding principal balance of debt of IdeaCast, Inc. ("IdeaCast") (together with all accrued interest and other lender costs required to be reimbursed by IdeaCast). The note was paid in full January 15, 2011.   At issuance the Company recorded the note at a present value of $7.0 million.  At December 30, 2010, $1.2 million of the balance was recorded in current liabilities.  Interest on the note was accreted at the Company's estimated incremental cost of debt based on then current market indicators over the term of the loan to interest expense. </div>

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8.             DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES NCM LLC has interest rate swap agreements with four counterparties that, at their inception, qualified for and were designated as cash flow hedges against interest rate exposure on $550.0 million of the variable rate debt obligations under the senior secured credit facility.  The interest rate swap agreements have the effect of converting a significant portion of the Company's variable rate debt to a fixed rate of 6.484%.  All interest rate swaps were entered into for risk management purposes.  The Company has no derivatives for other purposes.    Cash flow hedge accounting was discontinued on September 15, 2008 due to the event of default created by the bankruptcy of Lehman Brothers Holdings Inc. ("Lehman") and the inability of the Company to continue to demonstrate the swap would be effective.   In accordance with ASC 815 Derivatives and Hedging, the net derivative loss as of September 14, 2008 related to the discontinued cash flow hedge with Lehman Brothers Special Financing ("LBSF") shall continue to be reported in accumulated other comprehensive income unless it is probable that the forecasted transaction will not occur by the end of the originally specified time period.  Accordingly, the net derivative loss is being amortized to interest expense over the remaining term of the interest rate swap through February 13, 2015.  The amount amortized during both the quarters ended June 30, 2011 and July 1, 2010 was $0.3 million and during both the six months ended June 30, 2011 and July 1, 2010 was $0.6 million. The Company estimates approximately $1.3 million will be amortized to interest expense in the next 12 months. Both at inception and on an on-going basis the Company performs an effectiveness test using the hypothetical derivative method.   The fair values of the interest rate swaps with the counterparties other than Barclays (representing notional amounts of $412.5 million associated with a like amount of the variable rate debt) are recorded on the Company's balance sheet as a liability with the change in fair value recorded in other comprehensive income since the instruments were determined to be perfectly effective at June 30, 2011 and December 30, 2010.  There were no amounts reclassified into current earnings due to ineffectiveness during the periods presented other than as described herein.  The fair value of the Company's interest rate swap is based on dealer quotes, and represents an estimate of the amount the Company would receive or pay to terminate the agreements taking into consideration various factors, including current interest rates and the forward yield curve for 3-month LIBOR. As of June 30, 2011 and December 30, 2010, the estimated fair value and line item caption of derivative instruments recorded were as follows (in millions): <div align="center"> <table class="style1" border="0" cellspacing="0" cellpadding="0" width="95%"> <tr><td style="padding-bottom: 0in; padding-left: 0.1in; width: 212.75pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="284">  </td> <td style="padding-bottom: 0in; padding-left: 0.1in; width: 241.95pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="323" colspan="5"> Liability Derivatives</td></tr> <tr style="height: 12.15pt;"><td style="padding-bottom: 0in; padding-left: 0.1in; width: 212.75pt; padding-right: 0in; height: 12.15pt; padding-top: 0in;" valign="bottom" width="284">  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.1in; width: 121.4pt; padding-right: 0in; height: 12.15pt; padding-top: 0in;" valign="bottom" width="162" colspan="2"> As of June 30, 2011</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; height: 12.15pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 113pt; padding-right: 0in; height: 12.15pt; padding-top: 0in;" valign="bottom" width="151" colspan="2"> As of December 30, 2010</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0.1in; width: 212.75pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="284">  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.1in; width: 92.15pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="123"> Balance Sheet Location</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; border-top: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="39"> Fair Value</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="108"> Balance Sheet Location</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="43"> Fair Value</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 304.9pt; padding-right: 0in; padding-top: 0in;" valign="top" width="407" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; padding-top: 0in;" valign="top" width="39">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; padding-top: 0in;" valign="top" width="108">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="43">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 304.9pt; padding-right: 0in; padding-top: 0in;" valign="top" width="407" colspan="2"> Derivatives designated as hedging instruments in cash flow hedges:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; padding-top: 0in;" valign="top" width="39">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; padding-top: 0in;" valign="top" width="108">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="43">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 212.75pt; padding-right: 0in; padding-top: 0in;" valign="top" width="284"> Current portion of interest rate swap agreements </td> <td style="padding-bottom: 0in; padding-left: 0.1in; width: 92.15pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="123" nowrap="nowrap"> Current Liabilities</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; padding-top: 0in;" valign="top" width="39"> $19.4</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="108"> Current Liabilities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="43"> $19.0</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 212.75pt; padding-right: 0in; padding-top: 0in;" valign="top" width="284"> Interest rate swap agreements </td> <td style="padding-bottom: 0in; padding-left: 0.1in; width: 92.15pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="123" nowrap="nowrap"> Other Liabilities</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; padding-top: 0in;" valign="top" width="39"> $34.2</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="108"> Other Liabilities</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="43"> $34.1</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 304.9pt; padding-right: 0in; padding-top: 0in;" valign="top" width="407" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; padding-top: 0in;" valign="top" width="39">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; padding-top: 0in;" valign="top" width="108">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="43">  </td></tr> <tr style="height: 13.5pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 304.9pt; padding-right: 0in; height: 13.5pt; padding-top: 0in;" valign="top" width="407" colspan="2"> Derivatives not designated as hedging instruments:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; height: 13.5pt; padding-top: 0in;" valign="top" width="39">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; height: 13.5pt; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; height: 13.5pt; padding-top: 0in;" valign="top" width="108">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; height: 13.5pt; padding-top: 0in;" valign="bottom" width="43">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 212.75pt; padding-right: 0in; padding-top: 0in;" valign="top" width="284"> Current portion of interest rate swap agreements</td> <td style="padding-bottom: 0in; padding-left: 0.1in; width: 92.15pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="123" nowrap="nowrap"> Current Liabilities</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; padding-top: 0in;" valign="top" width="39"> $6.4</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="108"> Current Liabilities</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="43"> $6.3</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 212.75pt; padding-right: 0in; padding-top: 0in;" valign="top" width="284"> Interest rate swap agreements </td> <td style="padding-bottom: 0in; padding-left: 0.1in; width: 92.15pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="123" nowrap="nowrap"> Other Liabilities</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; padding-top: 0in;" valign="top" width="39"> $11.4</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="108"> Other Liabilities</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="43"> $11.4</td></tr> <tr style="height: 3.7pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 212.75pt; padding-right: 0in; height: 3.7pt; padding-top: 0in;" valign="top" width="284">  </td> <td style="padding-bottom: 0in; padding-left: 0.1in; width: 92.15pt; padding-right: 0in; height: 3.7pt; padding-top: 0in;" valign="bottom" width="123" nowrap="nowrap">  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; height: 3.7pt; padding-top: 0in;" valign="top" width="39">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; height: 3.7pt; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; height: 3.7pt; padding-top: 0in;" valign="top" width="108">  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; height: 3.7pt; padding-top: 0in;" valign="bottom" width="43">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 212.75pt; padding-right: 0in; padding-top: 0in;" valign="top" width="284"> Total derivatives </td> <td style="padding-bottom: 0in; padding-left: 0.1in; width: 92.15pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="123" nowrap="nowrap">  </td> <td style="border-bottom: windowtext 3px double; padding-bottom: 0in; padding-left: 0in; width: 29.25pt; padding-right: 0in; padding-top: 0in;" valign="top" width="39"> $71.4</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7.55pt; padding-right: 0in; padding-top: 0in;" valign="top" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 81pt; padding-right: 0in; padding-top: 0in;" valign="top" width="108">  </td> <td style="border-bottom: windowtext 3px double; padding-bottom: 0in; padding-left: 0in; width: 32pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="43"> $70.8</td></tr></table></div>   The effect of derivative instruments in cash flow hedge relationships on the consolidated financial statements for the quarters ended June 30, 2011 and July 1, 2010 and six months ended June 30, 2011 and July 1, 2010 were as follows (in millions): <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="94%"> <tr><td style="padding-bottom: 0in; padding-left: 0.7pt; width: 113pt; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="151">  </td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 162.75pt; padding-right: 0.7pt; border-right: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="217" colspan="4"> Unrealized Loss Recognized in NCM, Inc's OCI (Pre-tax)</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 2.3in; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="221" colspan="4"> Realized Loss Recognized in Interest Expense (Pre-tax)</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0.1in; width: 113pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="151">  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 41.7pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="56"> Qtr. Ended June 30, 2011 </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 42.15pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="56"> Qtr. Ended July 1, 2010</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 42.15pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="56"> Six Months Ended  June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 36.75pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-top: 0in;" valign="top" width="49"> Six Months Ended  July 1, 2010</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 36.75pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="49"> Qtr. Ended June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 42.95pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="57"> Qtr. Ended July 1, 2010</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 42.95pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="57"> Six Months Ended  June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 42.95pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="top" width="57"> Six Months Ended  July 1, 2010</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0.7pt; width: 113pt; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="151"> Interest Rate Swaps</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 41.7pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="56"> $(9.6)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 42.15pt; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="56"> $(17.1)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 42.15pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="56"> $(9.6)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 36.75pt; padding-right: 0.7pt; border-right: windowtext 1pt solid; padding-top: 0in;" valign="top" width="49"> $(25.9)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 36.75pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="49"> $(4.9)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 42.95pt; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="57"> $(4.9)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 42.95pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="57"> $(9.8)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 42.95pt; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="57"> $(9.8)</td></tr></table></div> For the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010 there was $0.3 million, $0.3 million, $0.6 million and $0.6 million of ineffectiveness recognized, respectively.  The effect of derivatives not designated as hedging instruments under ASC 815 on the consolidated financial statements for the quarters ended June 30, 2011 and July 1, 2010 and six months ended June 30, 2011 and July 1, 2010 were as follows (in millions): <div align="center"> <table class="style3" border="0" cellspacing="0" cellpadding="0" width="62%"> <tr><td style="padding-bottom: 0in; padding-left: 0.1in; width: 135.7pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="181">  </td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 163.35pt; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="218" colspan="5"> Loss Recognized in Interest Expense (Pre-tax)</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0.1in; width: 135.7pt; padding-right: 0in; padding-top: 0in;" valign="bottom" width="181">  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 38.4pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="51"> Qtr. Ended June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="55"> Qtr. Ended July 1, 2010</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="bottom" width="55"> Six Months Ended June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; border-top: windowtext 1pt solid; padding-top: 0in;" valign="top" width="55"> Six Months Ended July 1, 2010</td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" width="1">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0.7pt; width: 135.7pt; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="181"> Interest on borrowings </td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 38.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="51"> $(1.6)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="55"> $(1.6)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="55"> $(3.2)</td> <td style="padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="55"> $(3.0)</td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" width="1">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0.7pt; width: 135.7pt; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="181"> Change in derivative fair value</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 38.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="51"> $(2.0)</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="55"> (4.5)</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="55"> (0.8)</td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="55"> (6.2)</td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" width="1">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0.7pt; width: 135.7pt; padding-right: 0.7pt; padding-top: 0in;" valign="top" width="181">      Total </td> <td style="border-bottom: windowtext 3px double; padding-bottom: 0in; padding-left: 0.7pt; width: 38.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="51"> $(3.6)</td> <td style="border-bottom: windowtext 3px double; padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="55"> $(6.1)</td> <td style="border-bottom: windowtext 3px double; padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="55"> $(4.0)</td> <td style="border-bottom: windowtext 3px double; padding-bottom: 0in; padding-left: 0.7pt; width: 41.4pt; padding-right: 0.7pt; padding-top: 0in;" valign="bottom" width="55"> $(9.2)</td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" width="1">  </td></tr></table></div>

25300000

25800000

45500000

45600000

14700000

22000000

25200000

20600000

0.14

0.11

0.15

0.17

0.14

0.11

0.15

0.16

<div> <div> 2.       EARNINGS PER SHARE  Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding.  Diluted earnings per share is computed on the basis of the weighted average number of common shares outstanding plus the effect of potentially dilutive common stock options, and restricted stock using the treasury stock method.  The components of basic and diluted earnings per NCM, Inc, share are as follows: <div align="center"> <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="79%"> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="203">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="77"> Quarter Ended June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="78"> Quarter Ended July 1, 2010</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> Six Months Ended June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> Six Months Ended July 1, 2010</td></tr> <tr style="height: 5.75pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; height: 5.75pt; padding-top: 0in;" valign="bottom" width="203">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; height: 5.75pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="77">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; height: 5.75pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="78">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; height: 5.75pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="75">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; height: 5.75pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="203"> Net Income Attributable to NCM, Inc. (in millions)</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="77"> $9.0</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="78"> $4.6</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> $8.0</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> $5.8</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="203"> Weighted average shares outstanding:</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="77">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="78">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="203">    Basic</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="77"> 53,912,351</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="78"> 42,289,915</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="75"> 53,801,768</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="75"> 42,250,029</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="203">    Add: Dilutive effect of stock options and restricted stock</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="77"> 901,860</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="78"> 634,446</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> 872,525</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> 522,440</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="203">    Diluted</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="77"> 54,814,211</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="78"> 42,924,361</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> 54,674,293</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75"> 42,772,469</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="203"> Earnings per NCM, Inc. share:</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="77">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="78">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="75">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="203">    Basic</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="77"> $0.17</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="78"> $0.11</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="75"> $0.15</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="75"> $0.14</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 152.3pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="203">    Diluted</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.8in; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="77"> $0.16</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 58.85pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="78"> $0.11</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="75"> $0.15</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 56.35pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="75"> $0.14</td></tr></table></div>The effect of the 56,879,964; 62,935,711; 57,016,513 and 61,380,215 exchangeable NCM LLC common units held by the founding members for the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010, respectively, have been excluded from the calculation of diluted weighted average shares and earnings per NCM, Inc. share as they were antidilutive.  In addition, there were 45,780; 192,906; 37,025 and 282,149 stock options and 45; 3,238; 10,296 and 6,201 non-vested (restricted) shares for the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010, respectively, excluded from the calculation as they are antidilutive, primarily as exercise prices on stock options and intrinsic value of restricted stock shares were above the average market value. </div></div>

12700000

9300000

200000

<div> <div> 7.       fair value MEASUREMENT            Fair <a name="OLE_LINK2"> </a><a name="OLE_LINK1">Value of Financial Instruments—</a> The carrying amounts of cash and other notes payable as reported in the Company's balance sheets approximate their fair value due to their short maturity. The carrying amount of the revolving credit facility is considered a reasonable estimate of fair value due to its floating-rate terms.  The carrying amounts and fair values of interest rate swap agreements are the same since the Company accounts for these instruments at fair value.  The Company has estimated the fair value of its term loan based on an average of at least two non-binding broker quotes and the Company's analysis to be $710.9 million and $713.3 million at June 30, 2011 and December 30, 2010, respectively.  The carrying value of the term loan was $725.0 million as of June 30, 2011 and December 30, 2010. The fair value of the investment in RMG networks has not been estimated at June 30, 2011 as there were no monetary equity events or changes in circumstances that may have a significant adverse effect on the fair value of the investment, and as it is not practicable to do so because RMG is not a publicly traded company.  The carrying amount of the Company's investment was $6.7 million as of June 30, 2011 and December 30, 2010. Refer to Note 1.Recurring Measurements—The fair values of the Company's assets and liabilities measured on a recurring basis pursuant to ASC 820-10 Fair Value Measurements and Disclosures are as follows (in millions): </div> <div> </div> <div> <table style="line-height: 115%; width: 671.75pt; border-collapse: collapse; font-family: 'Times New Roman','serif'; margin-left: 0px !important; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="896"> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" rowspan="2" width="111"> </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" rowspan="2" width="111"> </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 249pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" rowspan="2" width="332" colspan="3"> Fair Value Measurements at Reporting Date Using</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" rowspan="3" width="111"> </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> As of</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" rowspan="3" width="111"> Quoted Prices in Active Markets for Identical Assets (Level 1)</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> Significant Other Observable Inputs</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 166pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="221" colspan="2"> Significant Unobservable Inputs </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> 30-Jun-11</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111">  (Level 2)</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 166pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="221" colspan="2"> (Level 3)</td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 166pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="221" colspan="2"> </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" width="111"> ASSETS:</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111" nowrap="nowrap"> </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" width="111"> Cash equivalents (1)  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111" nowrap="nowrap"> $43.10 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> $43.10 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> $0.00 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> $0.00 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" width="111"> Short-term investments (2) </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111" nowrap="nowrap"> 7.9</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> 7.9</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> 0</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> 0</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" width="111"> Long-term investments (2) </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111" nowrap="nowrap"> 1</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111"> 1</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111"> 0</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111"> 0</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" width="111"> Total Assets </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111" nowrap="nowrap"> $52.00 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> $52.00 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> $0.00 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" width="111"> $0.00 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" width="111"> LIABILITIES:</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" rowspan="2" width="111" nowrap="nowrap"> ($25.80)</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" rowspan="2" width="111"> $0.00 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" rowspan="2" width="111"> ($25.80)</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="bottom" rowspan="2" width="111"> $0.00 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" width="111"> Current Portion of Interest Rate Swap Agreements (3) </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" width="111"> Interest Rate Swap Agreements (3) </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111" nowrap="nowrap"> -45.6</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111"> 0</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111"> -45.6</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111"> 0</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr> <tr style="height: 15pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; padding-top: 0in;" valign="top" width="111"> Total Liabilities </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111" nowrap="nowrap"> ($71.40)</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111"> $0.00 </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111"> ($71.40)</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 83pt; padding-right: 5.4pt; height: 15pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="111"> $0.00 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" width="342">  </td> <td style="border-bottom: medium none; border-left: medium none; height: 15pt; border-top: medium none; border-right: medium none;" height="20" width="0"> </td></tr></table></div></div> (1)Cash Equivalents— The Company's cash equivalents are carried at estimated fair value. <div> (2)Short-Term and Long-term Investments— The Company's short-term and long-term investments are classified as available-for-sale and are carried at estimated fair value with any unrealized gains, as well as losses that the Company considers to be temporary, reported net of tax in other comprehensive income within stockholders' equity.  Short-term investments have effective maturity dates from three to 12 months and long-term investments have effective maturity dates greater than 12 months.  The amortized cost basis approximates the aggregate fair value as of June 30, 2011 and December 30, 2010.  For the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010 there was an inconsequential amount of net realized gains (losses) recognized in interest income and no net unrealized holding gains (losses) included in other comprehensive income. (3)Interest Rate Swap Agreements—Refer to Note 8. </div>

10800000

15100000

275200000

264700000

-6200000

-4500000

-800000

-2000000

15200000

7500000

16900000

8400000

34900000

24700000

34600000

33700000

-700000

-100000

6000000

4300000

6400000

3600000

2700000

4700000

5400000

-7600000

-3200000

-2900000

-11100000

-8100000

-7600000

-4600000

-1600000

-4700000

-7300000

<div> <div> 3.       intangible assets  During the first quarter of 2011, NCM LLC's founding members returned a net 322,751 common membership units to NCM LLC, which is an adjustment to the previously issued common membership units issued in exchange for the rights to exclusive access, in accordance with the ESA, to net new theatre screens and attendees added by the founding members to NCM LLC's network.  As a result, NCM LLC recorded a reduction to the intangible asset at fair value of the common membership units of $5.5 million.   During the first quarter of 2010, NCM LLC issued 2,212,219 common membership units to its founding members in exchange for the rights to exclusive access to net new theatre screens and attendees added by the founding members to NCM LLC's network. As a result, NCM LLC recorded an intangible asset at fair value of $39.8 million. During the second quarter of 2010, NCM LLC issued 6,510,209 common membership units to a subsidiary of AMCE as a result of that subsidiary's acquisition of Kerasotes Showplace Theatres, LLC (the "AMC Kerasotes Acquisition").  Such issuance provided NCM LLC with exclusive access, in accordance with the ESA, to the net new theatre screens and attendees added by AMCE to NCM LLC's network since the date of the last annual common unit adjustment through the date of the AMC Kerasotes Acquisition. As a result, NCM LLC recorded an intangible asset at the market value of the common membership units equal to $111.5 million.  The Company based the fair value of the intangible assets on the market value of the common membership units when issued, which are freely convertible into the Company's common stock.Pursuant to ASC 350-10 Intangibles – Goodwill and Other, the intangible assets have a finite useful life and the Company amortizes the assets over the remaining useful life corresponding with the ESAs.  Amortization of the asset related to Regal Consolidated Theatres will begin in the third quarter of 2011 as the Company now has access to on-screen advertising in the Regal Consolidated Theatres due to the expiration of their existing on–screen advertising agreement.</div></div>

100000

22200000

11200000

21400000

10500000

28700000

20800000

1172900000

1147400000

854500000

817600000

111900000

103800000

1061000000

1043600000

1200000

775000000

760000000

92400000

87400000

-28300000

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151300000

58900000

92400000

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-64000000

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-6100000

36400000

52200000

5800000

4600000

8000000

9000000

24800000

17300000

21900000

19300000

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-18600000

-30600000

-16500000

114000000

55800000

119600000

63800000

69700000

43300000

65200000

50200000

<div> <div> 1.THE COMPANY Description of Business National CineMedia, Inc. ("NCM, Inc.") was incorporated in Delaware as a holding company with the sole purpose of becoming a member and sole manager of National CineMedia, LLC ("NCM LLC").  The terms "NCM", "the Company" or "we" shall, unless the context otherwise requires, be deemed to include the consolidated entity.  The Company operates the largest digital in-theatre network in North America, allowing NCM to distribute advertising, Fathom entertainment programming events and corporate events under long-term exhibitor services agreements ("ESAs") with American Multi-Cinema, Inc. ("AMC"), a wholly owned subsidiary of AMC Entertainment, Inc. ("AMCE"), Regal Cinemas, Inc., a wholly owned subsidiary of Regal Entertainment Group ("Regal"), and Cinemark USA, Inc. ("Cinemark USA"), a wholly owned subsidiary of Cinemark Holdings, Inc. ("Cinemark").  AMC, Regal and Cinemark and their affiliates are referred to in this document as "founding members."  NCM LLC also provides such services to certain third-party theatre circuits under "network affiliate" agreements, which expire at various dates.  The Company's initial public offering ("IPO") was completed in February 2007. At June 30, 2011, NCM LLC had 110,803,475 common membership units outstanding, of which 53,923,511 (48.7%) were owned by NCM, Inc., 22,060,262 (19.9%) were owned by Regal, 17,323,782 (15.6 %) were owned by AMC, and 17,495,920 (15.8%) were owned by Cinemark. The membership units held by the founding members are exchangeable into NCM, Inc. common stock on a one-for-one basis.  Basis of Presentation The Company has prepared the unaudited condensed consolidated financial statements and related notes of NCM, Inc. 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.  Therefore, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K filed for the fiscal year ended December 30, 2010. 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 4, 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. Estimates—The preparation of 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, equity-based compensation and income taxes. Actual results could differ from those estimates. Consolidation—NCM, Inc. consolidates the accounts of NCM LLC under the provision of ASC 810 Consolidation.  Under ASC 810, a managing member of a limited liability company ("LLC") is presumed to control the LLC, unless the non-managing members have the right to dissolve the entity or remove the managing member without cause, or if the non-managing members have substantive participating rights.  The non-managing members of NCM LLC do not have either dissolution rights or removal rights.  NCM, Inc. has evaluated the provisions of the NCM LLC membership agreement and has concluded that the various rights of the non-managing members are not substantive participation rights under ASC 810, as they do not limit NCM, Inc.'s ability to make decisions in the ordinary course of business. Reclassifications – Certain reclassifications of previously reported amounts within operating activities in the statement of cash flows and share based compensation within the statement of equity and comprehensive income have been made to conform to the current year presentation. Significant Accounting Policies The Company's annual financial statements included in Form 10-K filed for the fiscal year ended December 30, 2010 contain a complete discussion of the Company's significant accounting policies. Receivables—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.  At June 30, 2011 there were two advertising agency groups through which the Company sources national advertising revenue representing approximately 20% and 11% of the Company's outstanding gross receivable balance; however, none of the individual contracts related to the advertising agencies were more than 10% of advertising revenue. At December 30, 2010 there were two advertising agency groups through which the Company sources national advertising revenue representing approximately 21% and 17% of the Company's outstanding gross receivable balance; however, none of the individual contracts related to the advertising agencies were more than 10% of advertising revenue.  The collectability risk is reduced by dealing with large, national advertising agencies who have strong reputations in the advertising industry and clients with stable financial positions. Other Investment— Through March 15, 2010, the Company accounted for its investment in RMG Networks, Inc., ("RMG") (formerly Danoo, Inc.) under the equity method of accounting as required by ASC 323-10 Investments – Equity Method and Joint Ventures. During the first quarter of 2010, RMG sold additional common stock to other third party investors for cash, which reduced the Company's ownership in RMG, resulting in cost method accounting.  At June 30, 2011, the Company's ownership in RMG was approximately 19% of the issued and outstanding preferred and common stock of RMG. Recent Accounting Pronouncements In June 2011, the Financial Accounting Standards Board ("FASB") issued an amendment to ASC 220 Comprehensive Income. Under the amendments to ASC 220, all items that are required to be recognized under current accounting standards as components of comprehensive income shall be reported in a financial statement that is displayed with the same prominence as other financial statements. ASC 220 is effective for fiscal years beginning after December 15, 2011. The Company is evaluating the impact of ASC 220 on its consolidated financial statements, including the impact to the presentation of comprehensive income in the consolidated statements of operations. 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 consolidated financial statements. </div></div>

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<div> 4.       RELATED-PARTY TRANSACTIONS  Pursuant to the ESAs, the Company makes monthly theatre access fee payments to the founding members, comprised of a payment per theatre attendee and a payment per digital screen with respect to the founding member theatres included in our network.  The total theatre access fee to the founding members for the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010 was $14.8 million, $13.4 million, $26.9 million and $26.3 million, respectively. Under the ESAs, for the quarters and six months ended June 30, 2011 and July 1, 2010, 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 specified 30 second equivalent cost per thousand ("CPM") impressions. The total revenue related to the beverage concessionaire agreements for the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010 was $10.7 million, $9.6 million, $18.9 million and $18.8 million, respectively.  In addition, the Company made payments to the founding members for use of their screens and theatres for its Fathom Events businesses.  These payments are at rates (percentage of event revenue) included in the ESAs based on the nature of the event.  Payments to the founding members for these events totaled $2.6 million, $1.4 million, $4.5 million and $3.8 million for the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010, respectively.  Also, pursuant to the terms of the NCM LLC Operating Agreement in place since the completion of the IPO, NCM LLC 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.  Distributions for the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010 are as follows (in millions):   <div align="center"> <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 0.2in;"><td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.6pt; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="87">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="72"> Quarter Ended June 30, 2011 </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="72"> Quarter Ended July 1, 2010</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="72"> Six Months Ended June 30, 2011 </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72"> Six Months Ended July 1, 2010</td></tr> <tr style="height: 0.2in;"><td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.6pt; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="87"> AMC</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">          $6.7</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">          $8.3</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">          $8.5</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">       $10.2</td></tr> <tr style="height: 0.2in;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.6pt; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="87"> Cinemark</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="72">            6.8</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="72">            5.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="72">            8.6</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="72">            7.2</td></tr> <tr style="height: 0.2in;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.6pt; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="87"> Regal</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="72">            8.6</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="72">            8.3</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="72">          10.8</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="72">          10.9</td></tr> <tr style="height: 0.2in;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.6pt; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="87"> NCM, Inc.</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">          21.0</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">          13.7</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">          26.4</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">          18.0</td></tr> <tr style="height: 0.2in;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.6pt; padding-right: 5.4pt; height: 0.2in; padding-top: 0in;" valign="top" width="87"> Total</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">       $43.1</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">       $35.8</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">       $54.3</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; height: 0.2in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72">       $46.3</td></tr></table></div> The available cash payment by NCM LLC to its founding members for the quarter ended June 30, 2011 of $22.1 million, which is included in amounts due to founding members at June 30, 2011, will be made in the third quarter of 2011.  The available cash payment by NCM LLC to its founding members for the quarter ended July 1, 2010 of $22.1 million was made in the third quarter of 2010.  On April 30, 2008, Regal acquired Consolidated Theatres and NCM issued common membership units to Regal upon the closing of its acquisition in exchange for the right to exclusive access to the theatres.  The Consolidated Theatres had a pre-existing advertising agreement and, as a result, Regal must make "integration" payments pursuant to the ESAs on a quarterly basis in arrears through the second quarter of 2011 in accordance with certain run-out provisions.  For the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010, the Consolidated Theatres payment was $0.5 million, $0.9 million, $0.8 million and $1.3 million, respectively and represents a cash element of the consideration received for the common membership units issued.  The Consolidated Theatres payment of $0.5 million for the quarter ended June 30, 2011, was included in amounts due from founding members at June 30, 2011 and will be received in the third quarter of 2011. The second quarter's payment will be the final integration payment as Consolidated Theatres have been added to our network in June 2011. Amounts due to founding members at June 30, 2011 were comprised of the following (in millions): <div align="center"> <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="84" colspan="2"> AMC</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="84" colspan="2"> Cinemark</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="84" colspan="2"> Regal</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88" colspan="2"> Total</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284"> Theatre access fees, net of beverage revenues</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 0.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 0.4</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 0.6</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72"> 1.5</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284"> Cost and other reimbursement</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="68"> (0.7)</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="68"> (1.0)</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="68"> (0.8)</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="72"> (2.5)</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284"> Distributions payable, net</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 6.7</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 6.8</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 8.1</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72"> 21.6</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284">      Total</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 6.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 6.2</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 7.9</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72"> 20.6</td></tr></table></div> Amounts due to founding members at December 30, 2010 were comprised of the following (in millions): <div align="center"> <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="84" colspan="2"> AMC</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="84" colspan="2"> Cinemark</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="84" colspan="2"> Regal</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88" colspan="2"> Total</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284"> Theatre access fees, net of beverage revenues</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 0.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 0.4</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 0.5</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72"> 1.4</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284"> Cost and other reimbursement</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="68"> (0.2)</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="68"> (0.5)</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="68"> 0.0</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="72"> (0.7)</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284"> Distributions payable, net</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 8.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 7.6</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 8.4</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72"> 24.5</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 213.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="284">      Total</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 8.8</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 7.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 51.2pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="68"> 8.9</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 11.8pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="16"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.75in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="72"> 25.2</td></tr></table></div> Other – During the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010, AMC, Cinemark and Regal purchased an inconsequential amount, $0.3 million, $0.1 million and $0.7 million, respectively, of NCM LLC's advertising inventory for their own use.  The value of such purchases are calculated by reference to NCM LLC's advertising rate card and included in advertising revenue.  Included in selling and marketing costs and Fathom Events operating costs is $0.6 million, $0.8 million, $0.9 million and $1.2 million for the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010, respectively, related to purchases of movie tickets and concession products from the founding members primarily for marketing to NCM LLC's advertising clients and marketing resale to Fathom Business customers.  The Company paid the founding members $17.1 million in the first quarter of 2011 for the 2010 taxable year, $0.9 million in the second quarter of 2011 for the 2009 taxable year and $14.0 million in the first quarter of 2010 for the 2009 taxable year pursuant to the tax sharing agreement. Related Party Affiliates — During 2011, NCM LLC entered into a digital content agreement and a Fathom agreement with Showplex Cinemas, Inc. ("Showplex"), an affiliate of one of NCM, Inc.'s directors, for NCM LLC to provide in-theatre advertising and Fathom Events services to Showplex in its theatre locations. The affiliate agreement was entered into at terms that are similar to those of our advertising affiliates. Included in advertising operating costs is an inconsequential amount for the quarter and six months ended June 30, 2011. As of June 30, 2011 an inconsequential amount is included in accounts payable for amounts due to Showplex under the agreement. During 2009, NCM LLC entered into a digital content agreement and a Fathom agreement with LA Live Cinemas LLC ("LA Live"), an affiliate of Regal, for NCM LLC to provide in-theatre advertising and Fathom Events services to LA Live in its theatre complex.  The affiliate agreement was entered into at terms that are similar to those of our other advertising affiliates.  Included in advertising operating costs is an inconsequential amount for the quarters ended June 30, 2011 and July 1, 2010 and $0.1 million and an inconsequential amount for the six months ended June 30, 2011 and July 1, 2010, respectively, for payments to the affiliate under the agreement.  As of June 30, 2011 and December 30, 2010 approximately $0.1 million is included in accounts payable for amounts due to LA Live under the agreement.  During 2009, NCM LLC entered into a network affiliate agreement with Starplex Operating L.P. ("Starplex"), an affiliate of Cinemark, for NCM LLC to provide in-theatre advertising services to Starplex in its theatre locations.  The affiliate agreement was entered into at terms that are similar to those of our other advertising affiliates.  Starplex joined the NCM LLC advertising network in the first quarter of 2010.  Included in advertising operating costs is $0.7 million, $0.4 million, $1.1 million and $0.5 million, for the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010, respectively, for its share of advertising sold in its theatres under the affiliate agreement.  As of June 30, 2011 and December 30, 2010 approximately $0.7 million and $0.5 million, respectively is included in accounts payable for amounts due to Starplex under the agreement.</div>

60000000

70200000

-20500000

-34500000

19500000

9900000

19000000

10700000

183700000

99100000

184800000

114000000

<div> 10. segment reporting Advertising is the principal business activity of the Company and is the Company's reportable segment under the requirements of ASC 280, Segment Reporting.  Advertising revenue accounted for 86.5%, 90.9%, 85.3% and 86.0% of consolidated revenue for the quarters ended June 30, 2011 and July 1, 2010 and the six months ended June 30, 2011 and July 1, 2010, respectively.   Fathom Consumer Events and Fathom Business Events are operating segments under ASC 280, but do not meet the quantitative thresholds for segment reporting.  The following table presents revenues less directly identifiable expenses to arrive at operating income net of direct expenses for the advertising reportable segment, the combined Fathom Events operating segments, and network, administrative and unallocated costs.  Management does not evaluate its segments on a fully allocated cost basis.  Therefore, the measure of segment operating income net of direct expenses shown below is not prepared on the same basis as operating income in the consolidated statement of operations and the results below are not indicative of what segment results of operations would have been had it been operated on a fully allocated cost basis.  Management cautions that it would be inappropriate to assume that unallocated operating costs are incurred proportional to segment revenue or any directly identifiable segment expenses.  Unallocated operating costs consist primarily of network costs, general and administrative costs and other unallocated costs including depreciation and amortization. Management does not track segment assets and, therefore, segment asset information is not presented.     <div align="center"> <table style="line-height: 115%; border-collapse: collapse; font-family: 'Calibri','sans-serif'; margin-left: 32.05pt; font-size: 11pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 255.55pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="341" colspan="4"> Quarter Ended June 30, 2011 (in millions)</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="79"> Advertising</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> Fathom Events and Other</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="86"> Network, Administrative and Unallocated Costs</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> Consolidated </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="255"> Revenue</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="79"> $              98.6 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> $              15.4 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86"> $              0.0 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $              114.0 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Operating costs</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79"> 20.7 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 10.7 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="88"> 31.4 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Selling and marketing costs </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79"> 12.2 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 2.0 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86"> 0.7 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 14.9 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Other costs </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> 0.7 </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> 0.2 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 0.9 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">      Operating income, net of direct expenses</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> $                              65.0 </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $                              2.5 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Network, administrative and other costs </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86"> 16.6 </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> 16.6 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Consolidated Operating Income </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $              50.2 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88">  </td></tr></table></div>   <div align="center"> <table style="line-height: 115%; border-collapse: collapse; font-family: 'Calibri','sans-serif'; margin-left: 32.05pt; font-size: 11pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 255.55pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="341" colspan="4"> Quarter Ended July 1, 2010 (in millions)</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="79"> Advertising</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> Fathom Events and Other</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="86"> Network, Administrative and Unallocated Costs</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> Consolidated </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Revenue</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="79"> $              90.1</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> $              8.9</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86"> $              0.1   </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $              99.1</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Operating costs</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79"> 19.1</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 6.0</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="88"> 25.1</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Selling and marketing costs </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79"> 11.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 2.2</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86"> 0.4</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 14.1</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Other costs </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> 0.7</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> 0.2</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 0.9</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">      Operating income, net of direct expenses</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> $                                                              58.8</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $                                                              0.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Network, administrative and other costs </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86"> 15.7</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> 15.7</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Consolidated Operating Income </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $                                                              43.3</td></tr></table></div>     <div align="center"> <table style="line-height: 115%; border-collapse: collapse; font-family: 'Calibri','sans-serif'; margin-left: 32.05pt; font-size: 11pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 255.55pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="341" colspan="4"> Six Months Ended June 30, 2011 (in millions) </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="79"> Advertising</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> Fathom Events and Other</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="86"> Network, Administrative and Unallocated Costs</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> Consolidated </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="255"> Revenue</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> $ 157.7 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> $ 27.1 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86"> $              0.0 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $ 184.8 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Operating costs</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79"> 36.3 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 18.3 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="88"> 54.6 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Selling and marketing costs </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79"> 23.8 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 4.1 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86"> 1.6 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 29.5 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Other costs </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> 1.4 </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> 0.4 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 1.8 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">      Operating income, net of direct expenses</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> $                              96.2 </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $                              4.3 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Network, administrative and other costs </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86"> 33.7 </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> 33.7 </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Consolidated Operating Income </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $                              65.2 </td></tr></table></div>       <div align="center"> <table style="line-height: 115%; border-collapse: collapse; font-family: 'Calibri','sans-serif'; margin-left: 32.05pt; font-size: 11pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 255.55pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="341" colspan="4"> Six Months Ended July 1, 2010 (in millions)</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="79"> Advertising</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> Fathom Events and Other</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="86"> Network, Administrative and Unallocated Costs</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> Consolidated </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Revenue</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> $              157.9</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="88"> $                              25.7</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86"> $              0.1</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $                              183.7</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Operating costs</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79"> 36.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 17.1</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="88"> 53.6</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Selling and marketing costs </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79"> 22.1</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 4.3</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86"> 0.8</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 27.2</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Other costs </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> 1.4</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> 0.4</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88"> 1.8</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">      Operating income, net of direct expenses</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79"> $                                                              97.9</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $                                                              3.9</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Network, administrative and other costs </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="79">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86"> 31.4</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> 31.4</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255"> Consolidated Operating Income </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="86">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88"> $                                                              69.7</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 191.2pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="255">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.15pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="79">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="88">  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 0.9in; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="86">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 65.8pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="88">  </td></tr></table></div>   The following is a summary of revenues by category, (in millions):  <div align="center"> <table style="line-height: 115%; border-collapse: collapse; font-family: 'Calibri','sans-serif'; margin-left: 32.05pt; font-size: 11pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 145.75pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="194">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="84"> Quarter Ended June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.65pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="80"> Quarter Ended July1, 2010</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 54.6pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="73"> Six Months Ended June 30, 2011</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 60.75pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="81"> Six Months Ended July 1, 2010</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 145.75pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="194"> National Advertising Revenue</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="84"> $ 67.7 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.65pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="80"> $              64.1</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 54.6pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="73"> $ 106.0 </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 60.75pt; padding-right: 5.4pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="81"> $              110.5</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 145.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="194"> Founding Member Advertising Revenue from Beverage Concessionaire Agreements</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="84"> 10.7 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.65pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="80"> 9.6</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 54.6pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="73"> 18.9 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 60.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="bottom" width="81"> 18.8</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 145.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="194"> Local Advertising Revenue</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="84"> 20.2 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.65pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="80"> 16.4</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 54.6pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="73"> 32.8 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 60.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="81"> 28.6</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 145.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="194"> Fathom Consumer Revenue</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="84"> 12.1 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.65pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="80"> 4.4</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 54.6pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="73"> 20.0 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 60.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="81"> 17.5</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 145.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="194"> Fathom Business Revenue </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="84"> 3.3 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 59.65pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="80"> 4.5</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 54.6pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="73"> 7.1 </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 60.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="81"> 8.2</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 145.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="194"> Other</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="84"> 0.0 </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.65pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="80"> 0.1</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 54.6pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="73"> 0.0 </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 60.75pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="81"> 0.1</td></tr> <tr style="height: 9.9pt;"><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 145.75pt; padding-right: 5.4pt; height: 9.9pt; padding-top: 0in;" valign="top" width="194">  Total Revenues </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="84"> $                              114.0 </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 59.65pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="80"> $                              99.1</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 54.6pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="73"> $              184.8 </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 5.4pt; width: 60.75pt; padding-right: 5.4pt; height: 9.9pt; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="top" width="81"> $                              183.7                </td></tr></table></div></div>

27200000

14100000

29500000

14900000

4400000

7200000

-410800000

-417200000

-493100000

-11800000

-490200000

400000

23000000

-14500000

-381700000

-14700000

-453700000

400000

109700000

-23400000

-318400000

-17500000

-373300000

500000

92400000

-20500000

-329800000

-17600000

-365600000

500000

87400000

-34500000

700000

3700000

<div style="page: WordSection1;" class="WordSection1"> <div> <div> <div> 11.     SUBSEQUENT EVENTS   On August 3, 2011, the Company declared a cash dividend of $0.22 per share (approximately $12 million) on each share of the Company's common stock (including outstanding restricted stock) to stockholders of record on August 18, 2011 to be paid on September 1, 2011. On July 5, 2011 NCM, LLC completed a private placement of $200 million in aggregate principal amount of 7.875% Senior Notes ("the Notes") due in 2021. The Notes have a maturity date of July 15, 2021 and pay interest semi-annually in arrears on January 15 and July 15 of each year, commencing January 15, 2012.  The proceeds were used to prepay $175 million of NCM, LLC's outstanding indebtedness under its existing senior secured credit facility, as well as payments on the existing revolving line of credit and offering costs. On June 20, 2011, NCM, LLC, entered into an amendment (the "Amendment") to NCM, LLC's senior secured credit facility (the "Credit Facility"). Pursuant to the terms and conditions thereof, the Amendment became effective upon the completion of the private placement of the Notes on July 5, 2011. Barclays Bank PLC, is administrative agent for certain lenders that are party to the Credit Facility. Under the Amendment, among other things: ·the existing six-year $66 million revolving credit facility that terminates on February 13, 2013, was replaced with a new $105 million revolving credit facility that will terminate on December 31, 2014; ·the $14 million outstanding revolving loan from Lehman (not subject to pro rata prepayment or re-borrowing) remains in place and will also mature on December 31, 2014; ·the negative covenants of LLC were amended to permit LLC to issue senior notes and other unsecured indebtedness subject to certain conditions; ·the unused line fee increased from 0.375% per annum to 0.50% per annum; ·the amount of permitted investments by LLC increased; and ·the definition of available cash was amended to (i) disregard the effect of certain debt issuances and (ii) level out the impact on available cash of certain capital expenditures. The amendment required LLC to use at least $175 million of the net proceeds of the senior notes offering to prepay the term loans under the Credit Facility. The consenting lenders further agreed that there would be no breakage costs associated with the prepayment of indebtedness from proceeds of the senior notes offering or the replacement of the revolving credit facility and the applicable margin has not changed. </div></div></div></div>

42772469

42924361

54674293

54814211

42250029

42289915

53801768

53912351