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<div> 5. ACCRUED EXPENSES <div> <table style="width: 372px; height: 226px;" border="0" cellspacing="0"> <tr><td width="65%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td rowspan="3" width="16%" colspan="2" align="center">As of December 29, 2011</td> <td rowspan="3" width="14%" colspan="2" align="center">As of December 30, 2010</td></tr> <tr valign="bottom"><td width="65%" align="left"> </td></tr> <tr valign="bottom"><td width="65%" align="left"> </td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td width="30%" colspan="4" align="center">(in millions)</td></tr> <tr valign="bottom"><td width="65%" align="left">Make-good reserve</td> <td width="2%" align="left">$</td> <td width="14%" align="right">2.7</td> <td width="2%" align="left">$</td> <td style="text-indent: 4px;" width="12%" align="left">2.8</td></tr> <tr valign="bottom"><td width="65%" align="left">Accrued interest</td> <td width="2%" align="left"> </td> <td width="14%" align="right">9.5</td> <td width="2%" align="left"> </td> <td style="text-indent: 4px;" width="12%" align="left">2.1</td></tr> <tr valign="bottom"><td width="65%" align="left">Deferred rent</td> <td width="2%" align="left"> </td> <td width="14%" align="right">2.9</td> <td width="2%" align="left"> </td> <td style="text-indent: 4px;" width="12%" align="left">2.2</td></tr> <tr valign="bottom"><td width="65%" align="left">Other accrued expenses</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">1.4</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="12%" align="left">1.8</td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="65%" align="left"> Total accrued expenses</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="right">16.5</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double; text-indent: 4px;" width="12%" align="left">8.9</td></tr></table></div> </div>

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<div> 12. COMMITMENTS AND CONTINGENCIES      Legal Actions—The Company is subject to claims and legal actions in the ordinary course of business. The Company believes such claims will not have a material effect on its financial position or results of operations.      Operating Commitments— The Company leases office facilities for its headquarters in Centennial, Colorado and also in various cities for its sales and marketing personnel as sales offices. The Company has no capital lease obligations. Total lease expense for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, was $2.3 million, $2.2 million and $2.3 million, respectively.      Future minimum lease payments under noncancelable operating leases as of December 29, 2011 are as follows (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="78%"> </td> <td width="2%"> </td> <td width="17%"> </td></tr> <tr valign="bottom"><td width="78%" align="left">2012</td> <td width="2%" align="left">$</td> <td width="17%" align="right">2.3</td></tr> <tr valign="bottom"><td width="78%" align="left">2013</td> <td width="2%" align="left"> </td> <td width="17%" align="right">2.3</td></tr> <tr valign="bottom"><td width="78%" align="left">2014</td> <td width="2%" align="left"> </td> <td width="17%" align="right">2.4</td></tr> <tr valign="bottom"><td width="78%" align="left">2015</td> <td width="2%" align="left"> </td> <td width="17%" align="right">2.3</td></tr> <tr valign="bottom"><td width="78%" align="left">2016</td> <td width="2%" align="left"> </td> <td width="17%" align="right">2.3</td></tr> <tr valign="bottom"><td width="78%" align="left">Thereafter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right">7.2</td></tr> <tr valign="bottom"><td width="78%" align="left"> Total</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="17%" align="right">18.8</td></tr></table></div>        Minimum Revenue Guarantees—As part of the network affiliate agreements entered in the ordinary course of business under which the Company sells advertising for display in various network affiliate theatre chains, the Company has agreed to certain minimum revenue guarantees on a per attendee basis. If a network affiliate achieves the attendance set forth in their respective agreement, the Company has guaranteed minimum revenue for the network affiliate per attendee if such amount paid under the revenue share arrangement is less than its guaranteed amount. The amount and term varies for each network affiliate, but terms range from three to 20 years, prior to any renewal periods of which some are at the option of the Company. The maximum potential amount of future payments the Company could be required to make pursuant to the minimum revenue guarantees is $17.3 million over the remaining terms of the network affiliate agreements. As of December 29, 2011 and December 30, 2010, the Company had no liabilities recorded for these obligations as such guarantees are less than the expected share of revenue paid to the affiliate.      Income Taxes—Due to the IRS examination discussed in Note 6 – Income Taxes, it is reasonably possible that the Company may be required to pay additional amounts to the founding members under the tax sharing agreement, and may request refunds from various state and federal taxing authorities. However, at this time the amount of any such payments to the founding members or refunds from the various taxing authorities cannot be reasonably estimated and as such no amounts are included in the consolidated financial statements herein. </div>

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<div> 9. BORROWINGS      Senior Secured Credit Facility— 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 consisted 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 was 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.      On July 5, 2011, NCM LLC completed an amendment to NCM LLC's senior secured credit facility primarily to replace $66.0 million of the $80.0 million revolving credit facility that would have terminated on February 13, 2013, with a new $105.0 million revolving credit facility that will terminate on December 31, 2014, and to amend certain covenants and administrative items. The unused line fee increased from 0.375% per annum to 0.50% per annum. The $14.0 million portion of the $80.0 million revolving credit facility that was outstanding from Lehman Brothers Holdings, Inc. ("Lehman") (not subject to pro rata prepayment or re-borrowing) remains in place but will also mature on December 31, 2014, for a total revolving credit facility of $119.0 million. As discussed in further detail below, on July 5, 2011, NCM LLC prepaid $175.0 million of the term loan facility. There were no breakage costs associated with the $175.0 million prepayment or the replacement of the revolving credit facility. NCM LLC recorded a $1.5 million non-cash charge for deferred loan fees associated with the balance of the term loan facility that was prepaid. In addition, the applicable margin, currently at 150 basis points over LIBOR, was not changed.      The outstanding balance of the term loan facility at December 29, 2011 and December 30, 2010 was $550.0 million and $725.0 million, respectively. The outstanding balance under the revolving credit facility at December 29, 2011 and December 30, 2010 was $44.0 million and $50.0 million, respectively. As of December 29, 2011, the interest rate swaps hedged the entire $550.0 million term loan at a fixed interest rate of 6.484% (both those accounted for as hedges and those that are not). 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 2.01%. 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 (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 December 29, 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 Company is in compliance with its debt covenants. As of December 29, 2011, the Company's consolidated net senior secured leverage ratio was 2.7 times (versus a covenant of 6.5 times). See Note 14 for an additional discussion of the interest rate swaps.      NCM LLC, Lehman and Barclays Bank PLC ("Barclays") entered into an agreement in March 2010 whereby Lehman resigned its agency function and restructured its outstanding $14.0 million revolving credit loan. NCM LLC and the remaining revolving credit lenders consented to the appointment of Barclays as successor administrative agent and swing line lender under the credit agreement. Additionally, the revolving credit commitments of Lehman were reduced to zero and the aggregate revolving credit commitments were reduced to $66.0 million. The $14.0 million outstanding principal of the revolving credit loans held by Lehman will not be repaid in connection with any future prepayments of revolving credit loans, but rather Lehman's share of the revolving credit facility will be paid in full by NCM LLC, along with any accrued and unpaid fees and interest, on the revolving credit termination date, December 31, 2014.      Senior Notes due 2021—On July 5, 2011 NCM LLC completed a private placement of $200.0 million in aggregate principal amount of 7.875% Senior Unsecured Notes due in 2021 ("Senior Notes"). The Senior 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 $175.0 million of NCM LLC's outstanding indebtedness under its existing senior secured credit facility discussed above, as well as pay $21.0 million on the existing revolving line of credit and pay offering costs. The outstanding balance of the Senior Notes at December 29, 2011 was $200.0 million. The notes are subordinated to all existing and future secured debt, including indebtedness under the Company's existing senior secured credit facility.      Other—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 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). 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. The note was paid in full on January 15, 2011. 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. The amount of interest expense recognized on the note for the years ended December 29, 2011, December 30, 2010 and December 31, 2009 was an inconsequential amount, $0.5 million and $0.7 million, respectively. Future Maturities of Borrowings—      The scheduled annual maturities on the credit facility and Senior Notes as of December 29, 2011 are as follows (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="79%"> </td> <td width="2%"> </td> <td width="17%"> </td></tr> <tr valign="bottom"><td width="79%" align="left">2012</td> <td width="2%" align="left">$</td> <td width="17%" align="right">0.0</td></tr> <tr valign="bottom"><td width="79%" align="left">2013</td> <td width="2%" align="left"> </td> <td width="17%" align="right">0.0</td></tr> <tr valign="bottom"><td width="79%" align="left">2014</td> <td width="2%" align="left"> </td> <td width="17%" align="right">44.0</td></tr> <tr valign="bottom"><td width="79%" align="left">2015</td> <td width="2%" align="left"> </td> <td width="17%" align="right">550.0</td></tr> <tr valign="bottom"><td width="79%" align="left">2016</td> <td width="2%" align="left"> </td> <td width="17%" align="right">0.0</td></tr> <tr valign="bottom"><td width="79%" align="left">Thereafter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right">200.0</td></tr> <tr valign="bottom"><td width="79%" align="left"> Total</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right">794.0</td></tr></table></div> </div>

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<div> 14. 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 the entire $550.0 million of currently outstanding debt obligations under the senior secured credit facility. The interest rate swap agreements have the effect of converting all of the Company's variable rate debt to a fixed rate of 6.484%.      Cash flow hedge accounting was discontinued on September 15, 2008 for one of the interest rate swap agreements due to the event of default created by the bankruptcy of Lehman and the inability of the Company to continue to demonstrate the swap would be effective. The Company did not elect cash flow hedge accounting and the interest rate swap with Barclays is recorded at fair value with any change in the fair value recorded in the statements of income. There was no change, $4.0 million increase and $8.3 million decrease in the fair value of the liability for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively, which the Company recorded as a change in derivative fair value.      In accordance with ASC 815 Derivatives and Hedging, the net derivative loss as of September 14, 2008 related to the discontinued cash flow hedge 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 the years ended December 29, 2011, December 30, 2010 and December 31, 2009 was $1.3 million per year. The Company estimates approximately $1.3 million will be amortized to interest on borrowings in the next 12 months.      The fair values of the interest rate swaps with the counterparties on which we have elected and qualify for cash flow hedge accounting (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 December 29, 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.      As of December 29, 2011 and December 30, 2010, the estimated fair value and line item caption of derivative instruments recorded were as follows (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="44%"> </td> <td width="12%"> </td> <td width="3%"> </td> <td width="12%"> </td> <td width="12%"> </td> <td width="3%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td width="44%" align="left"> </td> <td width="54%" colspan="6" align="center">Liability Derivatives</td></tr> <tr valign="bottom"><td width="44%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="27%" colspan="3" align="center">As of December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" width="27%" colspan="3" align="center">As of December 30, 2010</td></tr> <tr valign="bottom"><td width="44%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="12%" align="center">Balance Sheet Location</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="15%" colspan="2" align="center">Fair Value</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="12%" align="center">Balance Sheet Location</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="15%" colspan="2" align="center">Fair Value</td></tr> <tr valign="bottom"><td width="44%" align="left"> </td></tr> <tr><td width="98%" colspan="7"> </td></tr> <tr valign="bottom"><td width="56%" colspan="2" align="left">Derivatives designated as hedging instruments in cash flow hedges:</td> <td width="3%" align="right"> </td> <td width="12%" align="left"> </td> <td width="12%" align="left"> </td> <td width="3%" align="right"> </td> <td width="12%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left"> Current portion of interest rate swap agreements</td> <td width="12%" align="center">Current Liabilities</td> <td width="3%" align="right">$</td> <td width="12%" align="center">18.0</td> <td width="12%" align="center">Current Liabilities</td> <td width="3%" align="right">$</td> <td width="12%" align="center">19.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left"> Interest rate swap agreements</td> <td width="12%" align="left">Other Liabilities</td> <td width="3%" align="right">$</td> <td width="12%" align="center">35.1</td> <td width="12%" align="left">Other Liabilities</td> <td width="3%" align="right">$</td> <td width="12%" align="center">34.1</td></tr> <tr><td width="98%" colspan="7"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Derivatives not designated as hedging instruments:</td> <td width="12%" align="left"> </td> <td width="3%" align="right"> </td> <td width="12%" align="left"> </td> <td width="12%" align="left"> </td> <td width="3%" align="right"> </td> <td width="12%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left"> Current portion of interest rate swap agreements</td> <td width="12%" align="center">Current Liabilities</td> <td width="3%" align="right">$</td> <td width="12%" align="center">6.0</td> <td width="12%" align="center">Current Liabilities</td> <td width="3%" align="right">$</td> <td width="12%" align="center">6.3</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left"> Interest rate swap agreements</td> <td width="12%" align="center">Other Liabilities</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">11.7</td> <td width="12%" align="center">Other Liabilities</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">11.4</td></tr> <tr><td width="98%" colspan="7"> </td></tr> <tr valign="bottom"><td style="text-indent: 8px;" width="44%" align="left"> Total derivatives</td> <td width="12%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="3%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="center">70.8</td> <td width="12%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="3%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="center">70.8</td></tr></table></div>          The effect of derivative instruments in cash flow hedge relationships on the consolidated financial statements for the years ended December 29, 2011, December 30, 2010 and December 31, 2009 were as follows (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="15%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="8" align="center">Unrealized Gain (Loss) Recognized in NCM, Inc's Other Comprehensive Income (Pre-tax) for the Years Ended</td> <td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid;" rowspan="3" colspan="9" align="center">Realized (Loss) Recognized in Interest on Borrowings (Pre-tax) for the Years Ended</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">Dec. 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">Dec. 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">Dec. 31, 2009</td> <td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid;" rowspan="2" colspan="3" align="center">Dec. 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">Dec. 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">Dec. 31, 2009</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Interest Rate Swaps</td> <td align="right">$</td> <td align="right">(18.1</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(30.3</td> <td align="left">)</td> <td align="right">$</td> <td align="right">9.3</td> <td align="right">$</td> <td align="right">(19.5</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(19.4</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(16.7</td> <td align="left">)</td></tr></table></div>        The effect of derivatives not designated as hedging instruments under ASC 815 on the consolidated financial statements for the years ended December 29, 2011, December 30, 2010 and December 31, 2009 were as follows (in millions): <div> <table style="width: 735px; height: 184px;" border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="12%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="9" align="center">Gain or (Loss) Recognized in Non-Operating Expenses (Pre-tax) for the Years Ended</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Interest on borrowings</td> <td align="left">$</td> <td align="right">(6.5</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(6.2</td> <td align="left">)</td> <td align="left">$</td> <td align="right">(6.2</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Change in derivative fair value</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1.3</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(5.3</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">7.0</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> Total</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(7.8</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(11.5</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">0.8</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div> </div>

25300000

24000000

45500000

46800000

<div> 10. SHARE-BASED COMPENSATION      At the date of the IPO, the Company adopted the NCM, Inc. 2007 Equity Incentive Plan. As of December 29, 2011, there were 10,076,000 shares of common stock available for issuance or delivery under the Equity Incentive Plan of which 2,973,786 remain available for grants as of December 29, 2011. Options awarded under the Equity Incentive Plan are granted with an exercise price equal to the closing market price of NCM, Inc. common stock on the date the Company's board of directors approves the grant. Upon vesting of the restricted stock awards or exercise of options, NCM LLC will issue common membership units to the Company equal to the number of shares of the Company's common stock represented by such awards. Options and non-vested restricted stock vest annually over a three or five-year period and options have either 10-year or 15-year contractual terms. A forfeiture rate of 5% was estimated to reflect the potential separation of employees.      The Company recognized $7.5 million, $7.0 million and $3.1 million for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively, of share-based compensation expense for these options and $0.1 million were capitalized during each of the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. The income tax benefit recognized in the income statement for share-based compensation was approximately $2.1 million, $2.1 million, and $0.5 million for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. As of December 29, 2011, unrecognized compensation cost related to nonvested options was approximately $6.4 million, which will be recognized over a weighted average remaining period of 1.7 years.      The weighted average grant date fair value of granted options was $3.81, $4.84 and $2.17 for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. The intrinsic value of options exercised during the year was $1.5 million, $2.2 million and $0.2 million for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. The total fair value of awards vested during the years ended December 29, 2011, December 30, 2010 and December 31, 2009 was $6.2 million, $3.2 million and $0.3 million, respectively. The following assumptions were used in the valuation of the options: <div> <table style="width: 730px; height: 136px;" border="0" cellspacing="0"> <tr><td width="26%"> </td> <td width="22%"> </td> <td width="23%"> </td> <td width="3%"> </td> <td width="19%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Fiscal 2011</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Fiscal 2010</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Fiscal 2009</td></tr> <tr valign="bottom"><td align="left">Expected life of options</td> <td align="center">6.0 years</td> <td align="center">6.0 years</td> <td align="left"> </td> <td align="center">6.5 years</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Risk free interest rate</td> <td align="center">1.16% to 2.39%</td> <td align="center">1.38% to 3.76%</td> <td align="left"> </td> <td align="center">2.23% to 3.70%</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Expected volatility</td> <td align="center">30%-53.6%</td> <td align="right">39</td> <td align="left">%</td> <td align="right">30</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">Dividend yield</td> <td align="center">3.8% to 4.0%</td> <td align="center">3.8% to 4.0%</td> <td align="left"> </td> <td align="right">3</td> <td align="left">%</td></tr></table></div>   Activity in the Equity Incentive Plan is as follows: <div> <table border="0" cellspacing="0"> <tr><td width="34%"> </td> <td width="14%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="13%"> </td> <td width="13%"> </td> <td width="3%"> </td> <td width="13%"> </td></tr> <tr valign="bottom"><td width="34%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="5" width="17%" colspan="2" align="center">Options</td> <td style="border-bottom: #000000 1px solid;" rowspan="5" width="16%" colspan="2" align="center">Weighted Average Exercise Price</td> <td style="border-bottom: #000000 1px solid;" rowspan="5" width="13%" align="center">Weighted Average Remaining Contractual Life (in years)</td> <td style="border-bottom: #000000 1px solid;" rowspan="5" width="16%" colspan="2" align="center">Aggregate Intrinsic Value (in millions)</td></tr> <tr valign="bottom"><td width="34%" align="left"> </td></tr> <tr valign="bottom"><td width="34%" align="left"> </td></tr> <tr valign="bottom"><td width="34%" align="left"> </td></tr> <tr valign="bottom"><td width="34%" align="left"> </td></tr> <tr valign="bottom"><td width="34%" align="left">Outstanding at December 30, 2010</td> <td width="14%" align="right">3,876,224</td> <td width="3%" align="left"> </td> <td width="3%" align="right">$</td> <td width="13%" align="center">15.55</td> <td width="13%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="left"> </td></tr> <tr valign="bottom"><td width="34%" align="left">Granted</td> <td width="14%" align="right">1,314,568</td> <td width="3%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="center">17.61</td> <td width="13%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="left"> </td></tr> <tr valign="bottom"><td width="34%" align="left">Exercised</td> <td width="14%" align="right">(312,720</td> <td width="3%" align="left">)</td> <td width="3%" align="right"> </td> <td width="13%" align="center">13.55</td> <td width="13%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="left"> </td></tr> <tr valign="bottom"><td width="34%" align="left">Forfeited</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">(40,500</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">14.66</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="left"> </td></tr> <tr valign="bottom"><td width="34%" align="left">Outstanding at December 29, 2011</td> <td width="14%" align="right">4,837,572</td> <td width="3%" align="left"> </td> <td width="3%" align="right">$</td> <td width="13%" align="center">16.25</td> <td width="13%" align="center">8.3</td> <td width="3%" align="right">$</td> <td width="13%" align="center">2.3</td></tr> <tr><td width="96%" colspan="8"> </td></tr> <tr valign="bottom"><td width="34%" align="left">Exercisable at December 29, 2011</td> <td width="14%" align="right">1,863,256</td> <td width="3%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="center">15.95</td> <td width="13%" align="center">8.0</td> <td width="3%" align="right">$</td> <td width="13%" align="center">1.2</td></tr> <tr valign="bottom"><td width="34%" align="left">Vested and Expected to Vest at</td> <td width="14%" align="left"> </td> <td width="3%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="left"> </td> <td width="13%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="34%" align="left">December 29, 2011</td> <td width="14%" align="right">4,802,536</td> <td width="3%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="center">16.24</td> <td width="13%" align="center">8.3</td> <td width="3%" align="right">$</td> <td width="13%" align="center">2.3</td></tr></table></div>         The following table summarizes information about the stock options at December 29, 2011, including the weighted average remaining contractual life and weighted average exercise price: <div> <table border="0" cellspacing="0"> <tr><td width="2%"> </td> <td width="28%"> </td> <td width="12%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td width="2%" align="right"> </td> <td width="28%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="38%" colspan="4" align="center">Options Outstanding</td> <td style="border-bottom: #000000 1px solid; text-indent: 5px;" width="25%" colspan="3" align="center">Options Exercisable</td></tr> <tr valign="bottom"><td width="2%" align="right"> </td> <td width="28%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="12%" align="center">Number Outstanding as of December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="12%" align="center">Weighted Average Remaining Life (in years)</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="14%" colspan="2" align="center">Weighted Average Exercise Price</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="11%" align="center">Number Exercisable as of December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="14%" colspan="2" align="center">Weighted Average Exercise Price</td></tr> <tr valign="bottom"><td width="2%" align="right"> </td> <td width="28%" align="left"> </td></tr> <tr valign="bottom"><td width="2%" align="right"> </td> <td width="28%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="28%" align="left">Range of Exercise Price</td></tr> <tr valign="bottom"><td width="2%" align="right">$</td> <td style="text-indent: 1px;" width="28%" align="left">5.35-$14.58</td> <td width="12%" align="right">990,962</td> <td width="12%" align="center">7.5</td> <td width="2%" align="right">$</td> <td width="12%" align="right">9.84</td> <td width="11%" align="right">432,676</td> <td width="2%" align="right">$</td> <td width="12%" align="right">9.26</td></tr> <tr valign="bottom"><td width="2%" align="right">$</td> <td style="text-indent: 1px;" width="28%" align="left">14.59-$16.66</td> <td width="12%" align="right">1,019,569</td> <td width="12%" align="center">9.2</td> <td width="2%" align="right"> </td> <td width="12%" align="right">16.25</td> <td width="11%" align="right">664,252</td> <td width="2%" align="right"> </td> <td width="12%" align="center">16.27</td></tr> <tr valign="bottom"><td width="2%" align="right">$</td> <td style="text-indent: 1px;" width="28%" align="left">16.67–$16.97</td> <td width="12%" align="right">948,206</td> <td width="12%" align="center">8.0</td> <td width="2%" align="right"> </td> <td width="12%" align="right">16.97</td> <td width="11%" align="right">308,994</td> <td width="2%" align="right"> </td> <td width="12%" align="center">16.97</td></tr> <tr valign="bottom"><td width="2%" align="right">$</td> <td style="text-indent: 1px;" width="28%" align="left">16.98-$18.38</td> <td width="12%" align="right">1,265,569</td> <td width="12%" align="center">9.1</td> <td width="2%" align="right"> </td> <td width="12%" align="right">18.28</td> <td width="11%" align="right">75,214</td> <td width="2%" align="right"> </td> <td width="12%" align="center">17.92</td></tr> <tr valign="bottom"><td width="2%" align="right">$</td> <td style="text-indent: 1px;" width="28%" align="left">18.39–$29.05</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">613,266</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">7.1</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">21.27</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">382,120</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">21.77</td></tr> <tr valign="bottom"><td width="2%" align="right"> </td> <td width="28%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">4,837,572</td> <td style="border-bottom: #000000 3px double;" width="12%" align="center">8.3</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">16.25</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">1,863,256</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">15.95</td></tr></table></div>        Non-vested (Restricted) Stock – The Company has a non-vested stock program as part of the Equity Incentive Plan. The plan provides for non-vested stock awards to officers, board members and other key employees. Under the non-vested stock program, common stock of the Company may be granted at no cost to officers, board members and key employees, subject to requisite service and meeting financial performance targets (for certain grants beginning in 2009), and as such restrictions lapse, the award vests in that proportion. The participants are entitled to cash dividends and to vote their respective shares, although the sale and transfer of such shares is prohibited and the shares are subject to forfeiture during the restricted period. Additionally, the accrued cash dividends for 2009, 2010 and 2011 grants are subject to forfeiture during the restricted period. The shares are also subject to the terms and provisions of the Equity Incentive Plan. Non-vested stock awards granted in 2009 through 2011 (except grants to board members) include performance vesting conditions, which permit vesting to the extent that the Company achieves specified non-GAAP targets at the end of the measurement period. Non-vested stock granted to non-employee directors vest after one year. The following table represents the shares of non-vested stock: <div> <table style="width: 770px; height: 209px;" border="0" cellspacing="0"> <tr><td width="44%"> </td> <td width="24%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="23%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Shares</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Weighted Average Grant- Date Fair Value</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Non-vested as of December 30, 2010</td> <td align="right">915,584</td> <td align="left"> </td> <td align="right">$</td> <td align="center">16.77</td></tr> <tr valign="bottom"><td align="left">Granted</td> <td align="right">470,865</td> <td align="left"> </td> <td align="right"> </td> <td align="center">17.66</td></tr> <tr valign="bottom"><td align="left">Forfeited</td> <td align="right">(10,207</td> <td align="left">)</td> <td align="right"> </td> <td align="center">16.28</td></tr> <tr valign="bottom"><td align="left">Vested</td> <td style="border-bottom: #000000 1px solid;" align="right">(90,734</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">19.43</td></tr> <tr valign="bottom"><td align="left">Non-vested as of December 29, 2011</td> <td align="right">1,285,508</td> <td align="left"> </td> <td align="right">$</td> <td align="center">16.92</td></tr></table></div>        The Company recorded $4.3 million, $7.0 million and $2.4 million in compensation expense related to such outstanding non-vested shares during the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. Of the $4.3 million in compensation expense for the year ended December 29, 2011, a credit of $2.9 million was related to a true-up to the Company's expected performance against the specified non-GAAP targets for the 2009 and 2010 grants as of December 29, 2011. In addition, no compensation expense was recorded for the 2011 non-vested restricted stock grants subject to performance conditions as the grants are not expected to vest due to the projected underperformance against the specified non-GAAP targets as of December 29, 2011. Of the $7.0 million in compensation expense for the year ended December 30, 2010, $1.6 million was related to the Company's expected performance against the specified non-GAAP targets for the 2009 and 2010 grants as of December 30, 2010. During the years ended December 29, 2011, December 30, 2010 and December 31, 2009 there was $0.1 million, $0.1 million and an inconsequential amount capitalized, respectively. The income tax benefit recognized in the income statement for non-vested shares was $1.1 million, $2.1 million and $0.4 million for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. As of December 29, 2011, unrecognized compensation cost related to non-vested stock was approximately $3.8 million, which will be recognized over a weighted average remaining period of 1.2 years. The weighted average grant date fair value of non-vested stock was $17.66, $17.24 and $9.50 for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. The total fair value of awards vested was $1.8 million, $1.6 million and $0.3 million during the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. </div>

27500000

35200000

45900000

500000

600000

25200000

22000000

0.62

0.63

0.58

0.62

0.58

<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> <table border="0" cellspacing="0"> <tr><td width="45%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td> <td width="13%"> </td> <td width="3%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td width="45%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="48%" colspan="6" align="center">Years Ended</td></tr> <tr valign="bottom"><td width="45%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="17%" colspan="2" align="center">December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" width="16%" colspan="2" align="center">December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" width="15%" colspan="2" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td width="45%" align="left">Net Income Attributable to NCM, Inc. (in</td> <td width="3%" align="right"> </td> <td width="14%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="left"> </td> <td width="3%" align="right"> </td> <td width="12%" align="left"> </td></tr> <tr valign="bottom"><td width="45%" align="left">millions)</td> <td style="border-bottom: #000000 3px double;" width="3%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="center">31.5</td> <td style="border-bottom: #000000 3px double;" width="3%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="13%" align="center">29.2</td> <td style="border-bottom: #000000 3px double;" width="3%" align="right">$</td> <td style="border-bottom: #000000 3px double; text-indent: 12px;" width="12%" align="left">26.1</td></tr> <tr valign="bottom"><td width="45%" align="left">Weighted average shares outstanding:</td> <td width="3%" align="right"> </td> <td width="14%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="left"> </td> <td width="3%" align="right"> </td> <td width="12%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="45%" align="left"> Basic</td> <td width="3%" align="right"> </td> <td width="14%" align="center">53,864,243</td> <td width="3%" align="right"> </td> <td width="13%" align="center">46,369,411</td> <td width="3%" align="right"> </td> <td width="12%" align="right">42,118,639</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="45%" align="left"> Add: Dilutive effect of stock options and</td> <td width="3%" align="right"> </td> <td width="14%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="left"> </td> <td width="3%" align="right"> </td> <td width="12%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="45%" align="left"> restricted stock</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 14px;" width="14%" align="left">770,454</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 14px;" width="13%" align="left">590,581</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">284,496</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="45%" align="left"> Diluted</td> <td style="border-bottom: #000000 3px double;" width="3%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="14%" align="center">54,634,697</td> <td style="border-bottom: #000000 3px double;" width="3%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="13%" align="center">46,959,992</td> <td style="border-bottom: #000000 3px double;" width="3%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">42,403,135</td></tr> <tr valign="bottom"><td width="45%" align="left">Earnings per NCM, Inc. share:</td> <td width="3%" align="right"> </td> <td width="14%" align="left"> </td> <td width="3%" align="right"> </td> <td width="13%" align="left"> </td> <td width="3%" align="right"> </td> <td width="12%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="45%" align="left"> Basic</td> <td width="3%" align="right">$</td> <td width="14%" align="center">0.58</td> <td width="3%" align="right">$</td> <td width="13%" align="center">0.63</td> <td width="3%" align="right">$</td> <td width="12%" align="center">0.62</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="45%" align="left"> Diluted</td> <td width="3%" align="right">$</td> <td width="14%" align="center">0.58</td> <td width="3%" align="right">$</td> <td width="13%" align="center">0.62</td> <td width="3%" align="right">$</td> <td width="12%" align="center">0.62</td></tr></table></div>        The effect of the 56,948,238, 60,720,784 and 59,003,528, exchangeable NCM LLC common units held by the founding members for the years ended December 29, 2011, December 30, 2010, and December 31, 2009, respectively, have been excluded from the calculation of diluted weighted average shares and earnings per NCM, Inc. share as they were antidilutive. NCM LLC common units do not participate in NCM, Inc. dividends. In addition, there were 68,087, 179,427, and 700,547 stock options and non-vested (restricted) shares for the years December 29, 2011, December 30, 2010, and December 31, 2009, respectively, excluded from the calculation as they were antidilutive, primarily as exercise prices were above the average market value. The Company's non-vested (restricted) shares do not meet the definition of a participating security as the dividends will not be paid if the shares do not vest. </div>

12700000

10600000

300000

200000

300000

200000

<div> 13. FAIR VALUE MEASUREMENTS      Fair Value of Financial Instruments—The carrying amount of the revolving credit facility is considered a reasonable estimate of fair value due to its floating-rate terms and the fact that it was recently amended during 2011. 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 $530.6 million and $713.3 million at December 29, 2011 and December 30, 2010, respectively (Level 2). The carrying value of the term loan was $550.0 and $725.0 million as of December 29, 2011 and December 30, 2010, respectively.      The carrying value of the Company's Senior Notes as of December 29, 2011 was $200.0 million and the estimated fair value was $198.4 million based on an average of at least two non-binding broker quotes and the Company's analysis (Level 2).      During the fourth quarter of 2011, the Company received equity securities in a privately held company as consideration for an advertising contract. The fair value of the investment has not been estimated at December 29, 2011 as there were no identified events or changes in circumstances that had a significant adverse effect on the fair value of the investment and it is not practicable to do so because the equity securities are not in a publicly traded company. The carrying amount of the Company's investment was $0.2 million as of December 29, 2011. Refer to Note 1 —Other Investment.      During the fourth quarter of 2011, the Company recorded an impairment to the value of its investment in RMG due to the Company being further diluted by a new round of preferred equity financing that was senior to the Company's investment. The Company determined the impairment was other-than-temporary and the unrealized loss was reported as an impairment loss in the consolidated statements of income since the fair value was determined to be significantly below cost and recoverability was deemed unlikely. The key factor identified by management in making these assessments and determining the amount was due to a recapitalization of RMG that was completed in early 2012. The carrying amount of the Company's investment was $0.0 million and $6.7 million as of December 29, 2011 and December 30, 2010, respectively. Refer to Note 1 —Other Investment.      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> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td width="47%" align="left"> </td> <td width="2%" align="center"> </td> <td width="11%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="40%" colspan="6" align="center">Fair Value Measurements at Reporting Date Using</td></tr> <tr valign="bottom"><td width="47%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="5" width="13%" colspan="2" align="center">As of December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="5" width="15%" colspan="2" align="center">Quoted Prices in Active Markets for Identical Assets (Level 1)</td> <td style="border-bottom: #000000 1px solid;" rowspan="5" width="12%" colspan="2" align="center">Significant Other Observable Inputs (Level 2)</td> <td style="border-bottom: #000000 1px solid;" rowspan="5" width="13%" colspan="2" align="center">Significant Unobservable Inputs (Level 3)</td></tr> <tr valign="bottom"><td width="47%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left">ASSETS:</td> <td width="2%" align="right"> </td> <td width="11%" align="left"> </td> <td width="2%" align="right"> </td> <td width="13%" align="left"> </td> <td width="2%" align="right"> </td> <td width="10%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="47%" align="left"> Cash equivalents (1)</td> <td width="2%" align="right">$</td> <td width="11%" align="right">44.9</td> <td width="2%" align="right">$</td> <td width="13%" align="right">44.9</td> <td width="2%" align="right">$</td> <td width="10%" align="right">0.0</td> <td width="2%" align="right">$</td> <td width="11%" align="right">0.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="47%" align="left"> Short-term marketable securities (2)</td> <td width="2%" align="right"> </td> <td width="11%" align="right">14.2</td> <td width="2%" align="right"> </td> <td width="13%" align="right">14.2</td> <td width="2%" align="right"> </td> <td width="10%" align="right">0.0</td> <td width="2%" align="right"> </td> <td width="11%" align="right">0.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="47%" align="left"> Long-term marketable securities (2)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">18.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">18.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="47%" align="left"> Total Assets</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">77.1</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">77.1</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.0</td></tr> <tr valign="bottom"><td width="47%" align="left">LIABILITIES:</td> <td width="2%" align="right"> </td> <td width="11%" align="left"> </td> <td width="2%" align="right"> </td> <td width="13%" align="left"> </td> <td width="2%" align="right"> </td> <td width="10%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="47%" align="left"> Current Portion of Interest Rate Swap Agreements (3)</td> <td width="2%" align="right">$</td> <td width="11%" align="right">24.0</td> <td width="2%" align="right">$</td> <td width="13%" align="right">0.0</td> <td width="2%" align="right">$</td> <td width="10%" align="right">24.0</td> <td width="2%" align="right">$</td> <td width="11%" align="right">0.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="47%" align="left"> Interest Rate Swap Agreements (3)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">46.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">46.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="47%" align="left"> Total Liabilities</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">70.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">70.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.0</td></tr></table></div>     <div> <table border="0" cellspacing="0"> <tr><td width="45%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" colspan="5" align="left">Fair Value Measurements at Reporting Date Using</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="right">Significant</td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left">Quoted Prices in</td> <td align="right"> </td> <td align="center">Other</td> <td align="right"> </td> <td align="right">Significant</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="center">As of</td> <td align="right"> </td> <td colspan="3" align="right">Active Markets Observable</td> <td align="right"> </td> <td align="center">Unobservable</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td colspan="3" align="right">December 30, for Identical</td> <td align="right"> </td> <td align="center">Inputs</td> <td align="right"> </td> <td align="center">Inputs</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left">Assets (Level 1)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Level 2)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(Level 3)</td></tr> <tr valign="bottom"><td align="left">ASSETS:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">Cash equivalents (1)</td> <td align="right">$</td> <td align="right">28.4</td> <td align="right">$</td> <td align="right">28.4</td> <td align="right">$</td> <td align="right">0.0</td> <td align="right">$</td> <td align="right">0.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">Short-term marketable securities (2)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8.5</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8.5</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">Total Assets</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">36.9</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">36.9</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td></tr> <tr valign="bottom"><td align="left">LIABILITIES:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">Current Portion of Interest Rate Swap Agreements (3)</td> <td align="right">$</td> <td align="right">25.3</td> <td align="right"> </td> <td align="right">0.0</td> <td align="right">$</td> <td align="right">25.3</td> <td align="right"> </td> <td align="right">0.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">Interest Rate Swap Agreements (3)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">45.5</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">45.5</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">Total Liabilities</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">70.8</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">70.8</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td></tr></table></div>   (1) Cash Equivalents— The Company's cash equivalents are carried at estimated fair value. (2) Short-Term and Long-Term Marketable Securities—For the years ended December 29, 2011 and December 30, 2010, there was an inconsequential amount of net realized gains (losses) recognized in interest income and no net unrealized holding gains (losses) included in other comprehensive income. <div> <table border="0" cellspacing="0"> <tr><td width="48%"> </td> <td width="3%"> </td> <td width="16%"> </td> <td width="3%"> </td> <td width="15%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="5" align="center">As of December 29, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Amortized Cost Basis (in millions)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Aggregate Fair Value (in millions)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" align="center">Maturities (in years)</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">SHORT-TERM MARKETABLE SECURITIES:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Commercial Paper</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Agency</td> <td align="right">$</td> <td align="right">9.2</td> <td align="right">$</td> <td align="right">9.2</td> <td align="right">0.2</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Financial</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">5.0</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">5.0</td> <td align="right">0.1</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> Total short-term marketable securities</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">14.2</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">14.2</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">LONG-TERM MARKETABLE SECURITIES:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Commercial Paper</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Agency</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">18.0</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">18.0</td> <td align="right">1.8</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> Total long-term marketable securities</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">18.0</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">18.0</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 8px;" align="left"> TOTAL MARKETABLE SECURITIES</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">32.2</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">32.2</td> <td align="left"> </td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="48%"> </td> <td width="3%"> </td> <td width="16%"> </td> <td width="3%"> </td> <td width="15%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="5" align="center">As of December 30, 2010</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Amortized Cost Basis (in millions)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Aggregate Fair Value (in millions)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" align="center">Maturities (in years)</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">SHORT-TERM MARKETABLE SECURITIES:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Commercial Paper</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Agency</td> <td align="right">$</td> <td style="text-indent: 8px;" align="left">5.0</td> <td align="right">$</td> <td align="right">5.0</td> <td align="right">0.5</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Financial</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid; text-indent: 8px;" align="left">3.5</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">3.5</td> <td align="right">0.4</td></tr> <tr valign="bottom"><td style="text-indent: 8px;" align="left"> TOTAL MARKETABLE SECURITIES</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double; text-indent: 8px;" align="left">8.5</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">8.5</td> <td align="left"> </td></tr></table></div>   (3) Interest Rate Swap Agreements—Refer to Note 14. </div>

2500000

10800000

20800000

275200000

274900000

7000000

-5300000

-1300000

26300000

34500000

30400000

118700000

126600000

120000000

-800000

-700000

<div> 6. INCOME TAXES The Company has provided total income taxes, as follows (in millions): <div> <table style="width: 747px; height: 397px;" border="0" cellspacing="0"> <tr><td width="43%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="43%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="48%" colspan="8" align="center">Years Ended</td></tr> <tr valign="bottom"><td width="43%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="15%" colspan="2" align="center">December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="17%" colspan="3" align="center">December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="16%" colspan="3" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td width="43%" align="left"> </td></tr> <tr valign="bottom"><td width="43%" align="left">Current:</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="43%" align="left"> Federal</td> <td width="2%" align="left">$</td> <td width="13%" align="right">6.2</td> <td width="2%" align="left">$</td> <td width="13%" align="right">6.0</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">2.9</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="43%" align="left"> State</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">0.7</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">0.7</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">0.4</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 8px;" width="43%" align="left"> Total current income taxes</td> <td width="2%" align="left">$</td> <td width="13%" align="right">6.9</td> <td width="2%" align="left">$</td> <td width="13%" align="right">6.7</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">3.3</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="43%" align="left">Deferred:</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="43%" align="left"> Federal</td> <td width="2%" align="left">$</td> <td width="13%" align="right">9.7</td> <td width="2%" align="left">$</td> <td width="13%" align="right">9.1</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">11.6</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="43%" align="left"> State</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">1.3</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">1.2</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">1.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 8px;" width="43%" align="left"> Total deferred income taxes</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">11.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">10.3</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">13.4</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="43%" align="left">Valuation allowance</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">1.5</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(0.2</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(0.1</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="43%" align="left">Total income tax provision on</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="43%" align="left">Consolidated Statements of Income</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="13%" align="right">19.4</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="13%" align="right">16.8</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">16.6</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="43%" align="left">Income (benefit) tax on other</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" width="43%" align="left"> comprehensive income</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="13%" align="right">0.3</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="13%" align="right">(2.0</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">)</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">4.4</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div>        A reconciliation of the provision for income taxes as reported and the amount computed by multiplying income before taxes, less noncontrolling interest, by the U.S. federal statutory rate of 35% was (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="44%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr><td width="44%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="49%" colspan="9" align="center"> Years Ended </td></tr> <tr valign="bottom"><td width="44%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="17%" colspan="3" align="center">December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="16%" colspan="3" align="center">December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="16%" colspan="3" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td width="44%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Provision calculated at federal statutory</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">income tax rate:</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left"> Income Before Income Taxes</td> <td style="text-indent: 4px;" width="2%" align="left">$</td> <td width="13%" align="right">42.0</td> <td width="2%" align="left"> </td> <td style="text-indent: 4px;" width="2%" align="left">$</td> <td width="12%" align="right">44.0</td> <td width="2%" align="left"> </td> <td style="text-indent: 4px;" width="2%" align="left">$</td> <td width="12%" align="right">41.2</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left"> Less: Noncontrolling Interests</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(24.2</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(28.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(26.3</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="44%" align="left"> Income Attributable to NCM, Inc</td> <td width="2%" align="left"> </td> <td width="13%" align="right">17.8</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">16.0</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">14.9</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">State and local income taxes, net of federal</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left"> benefit</td> <td width="2%" align="left"> </td> <td width="13%" align="right">1.5</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">1.4</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">2.1</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Change in valuation allowance</td> <td width="2%" align="left"> </td> <td width="13%" align="right">1.5</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">(0.2</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="12%" align="right">(0.1</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="44%" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(1.4</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(0.4</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(0.3</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="44%" align="left"> Total income tax provision</td> <td style="border-bottom: #000000 3px double; text-indent: 4px;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="13%" align="right">19.4</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double; text-indent: 4px;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">16.8</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double; text-indent: 4px;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">16.6</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div>   <div> </div>      Significant components of the Company's deferred tax assets and deferred tax liability consisted of the following (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="66%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="66%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="15%" colspan="3" align="center">As of December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="14%" colspan="3" align="center">As of December 30, 2010</td></tr> <tr valign="bottom"><td width="66%" align="left"> </td></tr> <tr valign="bottom"><td width="66%" align="left"> </td></tr> <tr valign="bottom"><td width="66%" align="left">Deferred tax assets:</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="66%" align="left"> Excess of tax basis over book basis – investment in consolidated</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="66%" align="left"> subsidiary NCM LLC (1)(2)</td> <td width="2%" align="left">$</td> <td width="11%" align="right">284.4</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">336.9</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="66%" align="left"> Unrealized loss on hedging transactions and investments</td> <td width="2%" align="left"> </td> <td width="11%" align="right">16.4</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">15.1</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="66%" align="left"> Other</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">11.2</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">9.3</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="66%" align="left">Total deferred tax assets</td> <td width="2%" align="left"> </td> <td width="11%" align="right">312.0</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">361.3</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="66%" align="left"> Valuation allowance</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(3.2</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">(1.7</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="66%" align="left">Total deferred tax assets, net of valuation allowance (3)</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">308.8</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="10%" align="right">359.6</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr> <tr><td width="95%" colspan="7"> </td></tr> <tr valign="bottom"><td width="66%" align="left">Deferred tax liabilities:</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="66%" align="left"> Discount on liability for income taxes payable to founding</td> <td width="2%" align="left">$</td> <td width="11%" align="right">53.8</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">65.8</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="66%" align="left"> members under tax sharing agreement (4)</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="66%" align="left"> Other</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">3.3</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">2.5</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="66%" align="left">Total deferred tax liabilities (5)</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">57.1</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="10%" align="right">68.3</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div>   (1) The Company recorded a tax basis adjustment to reflect the Company's share of the tax basis in excess of the book basis in the underlying assets of NCM LLC. NCM LLC made an election under Section 754 of the Internal Revenue Code when its tax return was prepared resulting in the positive tax basis adjustment on its tax-basis balance sheet of the Company for its acquired share of NCM LLC's assets. The vast majority of this tax basis adjustment is attributable to intangible assets that are amortized over the remainder of the 15-year period for federal income tax purposes. For the year ended December 29, 2011, this caused an increase in the basis of $15.8 million. The deferred tax asset for the investment in NCM LLC reflects the tax effected difference between the Company's tax basis and its financial reporting basis. The basis difference results in part from the payments made to the founding members at the date of the IPO that were accounted for as distributions under generally accepted accounting principles, but which are treated as creating an amortizable asset for federal income tax purposes. In addition, the Company recorded a step-up in tax basis related to the investment in NCM LLC, which was not recorded for financial reporting purposes as well as an increase due to the common unit membership redemption. Finally, the Company recorded a step-up in tax basis as a result of payments made by NCM, Inc. to the founding members under the tax receivable agreement. (2) For federal income tax purposes, an amortizable intangible asset was created on the tax-basis balance sheet of NCM LLC as a result of the founding members agreeing to modify NCM LLC's payment obligations under the ESAs and as a result of the common unit adjustments, which are further described in Note 4. However, due to differences in tax and book measurement principles, there was a temporary difference in the recorded amounts for tax and book purposes. The amount reflects the tax effect of NCM, Inc.'s share of this intangible asset, which is amortized over the remainder of the 30-year life for federal income tax purposes. In addition, the deferred tax asset was adjusted to reflect the changes in ownership that occurred during the year due to the common unit adjustments further described in Note 4. For the year ended December 29, 2011, this caused an increase in the basis of $4.4 million. (3) Represents $3.5 million and $3.9 million included in "Other current assets" and $305.3 million and $355.7 million in "Deferred tax assets" at December 29, 2011 and December 30, 2010, respectively, in the Consolidated Balance Sheets. (4) NCM, Inc. recorded a long-term payable to founding members related to the tax receivable agreement, which is recorded at its present value. The discount on this liability is a temporary difference that resulted in a deferred tax liability. The Company recorded accretion of interest on the discounted payable of $15.1 million and $14.5 million for the year ended December 29, 2011 and December 30, 2010, respectively. (5) Represents $0.1 million and $0.2 million included in "Other current liabilities" and $57.0 million and $68.1 million in "Deferred tax liability" at December 29, 2011 and December 30, 2010, respectively, in the Consolidated Balance Sheets.      In the third quarter of 2011, NCM, Inc. corrected an error in its income tax accounts related to the common unit membership redemption initially recorded in the third quarter of 2010. The error is immaterial to the consolidated financial statements; accordingly, prior periods will not be restated. As a result of the out-of-period adjustment, the Company recorded a decrease of $37.4 million to its deferred tax asset for its ownership interest in NCM LLC to reflect the tax effected difference between the tax basis and the book basis. In addition, the Company recorded a decrease of $19.5 million in its long-term payable to founding members for the estimated payment to the founding members of 90% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that the Company expects to realize as a result of the deferred tax asset, which is recorded at its present value. The discount on this liability is a temporary difference that resulted in a reduction to the deferred tax liability of $6.5 million.      On the IPO date, NCM, Inc. and the founding members entered into a tax receivable agreement. Under the terms of this agreement, NCM, Inc. will make cash payments to the founding members in amounts equal to 90% of NCM, Inc.'s actual tax benefit realized from the tax amortization of the intangible assets described above. For purposes of the tax receivable agreement, cash savings in income and franchise tax will be computed by comparing NCM, Inc.'s actual income and franchise tax liability to the amount of such taxes that NCM, Inc. would have been required to pay had there been no increase in NCM, Inc.'s proportionate share of tax basis in NCM LLC's tangible and intangible assets and had the tax receivable agreement not been entered into. The tax receivable agreement applies to NCM, Inc.'s taxable years up to and including the 30th anniversary date of the offering. The Company paid the founding members $16.7 million in 2010, of which $14.0 million was for the 2009 taxable year and $2.7 million was for the 2008 taxable year, and $18.0 million in 2011, of which $17.1 million was for the 2010 taxable year and $0.9 million was for the 2009 taxable year. In 2012 the Company expects to make an additional $1.0 million payment for the 2010 taxable year and $20.6 million for the 2011 taxable year.      In assessing the realizable value of deferred tax assets, primarily arising in connection with the IPO, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which these temporary differences become deductible. The Company has recorded a valuation allowance against deferred tax assets of $3.2 million and $1.7 million at December 29, 2011 and December 30, 2010, respectively, for its deferred assets related to the impairment loss recorded for an investment for which management believes it is more likely than not that a capital gain will not be realized in future periods.      As of December 29, 2011 or December 30, 2010, there were no material expense or liability recorded for payment of interest and penalties associated with uncertain tax positions or material unrecognized tax positions.      The Company is subject to taxation in the U.S. and various states. NCM LLC's calendar year 2007 and 2008 tax returns are currently under examination by the Internal Revenue Service ("IRS"). In September 2011, NCM LLC received a Notice of Proposed Adjustment ("NOPA") for the calendar year 2007 examination primarily related to characterization of the cash received by the founding members at or around the date of the Company's IPO. As NCM LLC is a pass-through entity for federal income tax purposes, there will be no direct impact to the financial statements of NCM LLC. However, there could be an impact to the financial statements of NCM, Inc. The impact of any adjustment could result in NCM, Inc. recognizing its proportionate share of the changes in the tax basis in NCM LLC. This could result in a net increase in deferred tax assets and equity of NCM, Inc. NCM LLC strongly disagrees with, and will contest, the IRS' positions. Refer to Note 12. </div>

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<div> 4. INTANGIBLE ASSETS The following is a summary of the Company's intangible assets (in millions): <div> <table style="width: 842px; height: 188px;" border="0" cellspacing="0"> <tr><td width="19%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="3" align="center">As of December 31, 2009</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Additions (1)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="3" align="center">Amortization</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="3" align="center">Other (2)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="3" align="center">As of December 30, 2010</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Gross carrying amount</td> <td align="right">$</td> <td align="right">138.6</td> <td align="left"> </td> <td align="right">$</td> <td align="right">151.3</td> <td align="right"> </td> <td align="right">0.0</td> <td align="left"> </td> <td align="right">$</td> <td align="right">(3.9</td> <td align="left">)</td> <td align="right">$</td> <td align="right">286.0</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Accumulated amortization</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4.4</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6.4</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(10.8</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> Total intangible assets,</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> net</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">134.2</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">151.3</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(6.4</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(3.9</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">275.2</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="18%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="18%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="16%" colspan="3" align="center">As of December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="13%" colspan="2" align="center">Additions (3)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="16%" colspan="3" align="center">Amortization</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="16%" colspan="3" align="center">Other (2)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="15%" colspan="3" align="center">As of December 29, 2011</td></tr> <tr valign="bottom"><td width="18%" align="left"> </td></tr> <tr valign="bottom"><td width="18%" align="left"> </td></tr> <tr valign="bottom"><td width="18%" align="left">Gross carrying amount</td> <td width="2%" align="right">$</td> <td width="12%" align="right">286.0</td> <td width="2%" align="left"> </td> <td width="2%" align="right">$</td> <td width="11%" align="right">10.4</td> <td width="2%" align="right"> </td> <td width="12%" align="right">0.0</td> <td width="2%" align="left"> </td> <td width="2%" align="right">$</td> <td width="12%" align="right">(0.7</td> <td width="2%" align="left">)</td> <td width="2%" align="right">$</td> <td width="11%" align="right">295.7</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="18%" align="left">Accumulated amortization</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(10.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(10.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(20.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="18%" align="left"> Total intangible assets,</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="18%" align="left"> net</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">275.2</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">10.4</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">(10.0</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">)</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">(0.7</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">)</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">274.9</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div>   (1) 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 the 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 fair value of the common membership units of $111.5 million. (2) See Note 8 for further information on integration payments. (3) 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 third quarter of 2011, the Company purchased an intangible asset for $14.7 million and during the fourth quarter of 2011 purchased intangible assets for $1.2 million associated with network affiliate agreements. The assets will be amortized over the term of the respective agreements.      The Company based the fair value of the intangible assets to its founding members on the market value of NCM, Inc.'s publicly traded stock when the common membership units were issued. The NCM LLC common membership units are fully convertible into NCM, Inc.'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 or the term of the contract with the network affiliate. Amortization of the asset related to Regal Consolidated Theatres began in the third quarter of 2011 when the Company began to access on-screen advertising in the Regal Consolidated Theatres due to the expiration of their prior on-screen advertising agreement.      For the years ended December 29, 2011, December 30, 2010 and December 31, 2009 the Company recorded amortization of $10.0 million, $6.4 million and $2.9 million, respectively. The estimated aggregate amortization expense for each of the five succeeding years is as follows (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="12%"> </td> <td width="3%"> </td> <td width="19%"> </td></tr> <tr valign="bottom"><td width="12%" align="left">2012</td> <td width="3%" align="left">$</td> <td width="19%" align="right">11.1</td></tr> <tr valign="bottom"><td width="12%" align="left">2013</td> <td width="3%" align="left"> </td> <td width="19%" align="right">11.1</td></tr> <tr valign="bottom"><td width="12%" align="left">2014</td> <td width="3%" align="left"> </td> <td width="19%" align="right">11.1</td></tr> <tr valign="bottom"><td width="12%" align="left">2015</td> <td width="3%" align="left"> </td> <td width="19%" align="right">11.1</td></tr> <tr valign="bottom"><td width="12%" align="left">2016</td> <td width="3%" align="left"> </td> <td width="19%" align="right">11.1</td></tr></table></div> </div>

500000

400000

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47100000

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<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 (the "Services") 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 the Services to certain third-party theatre circuits under "network affiliate" agreements, which expire at various dates.      At December 29, 2011, NCM LLC had 110,814,569 common membership units outstanding, of which 53,934,605 (48.7%) were owned by NCM, Inc., 22,060,262 (19.9%) were owned by Regal, 17,495,920 (15.8%) were owned by Cinemark, and 17,323,782 (15.6%) were owned by AMC. The membership units held by the founding members are exchangeable into NCM, Inc. common stock on a one-for-one basis. Basis of Presentation      The Company has prepared its consolidated financial statements and related notes of NCM, Inc. in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC").      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 8, 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.      Reclassifications—Certain reclassifications of previously reported interest income and other within the statements of income, share based compensation within the statement of equity, other accrued expenses within accrued expenses and within network, administrative and unallocated costs in segment reporting have been made to conform to the current year presentation. Also, as discussed in Note 6, the Company corrected immaterial income tax errors. Significant Accounting Policies      Accounting Period—The Company operates on a 52-week fiscal year, with the fiscal year ending on the first Thursday after December 25, which, in certain years, results in a 53-week year.      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. Fathom Consumer Events and Fathom Business Events are operating segments under ASC 280, but do not meet the quantitative thresholds for segment reporting. The Company does not evaluate its segments on a fully allocated cost basis, nor does the Company track segment assets separately Therefore, the measure of segment operating income net of direct expenses presented herein is not prepared on the same basis as operating income in the consolidated statements of income and the results are not indicative of what segment results of operations would have been had it been operated on a fully allocated cost basis. The Company cautions that it would be inappropriate to assume that unallocated operating costs are incurred proportional to segment revenue or any directly identifiable segment expenses. Refer to Note 15.      Revenue Recognition—Advertising revenue is recognized in the period in which an advertising contract is fulfilled against the contracted theatre attendees. Make-good provisions are made to defer contracted revenue to future periods when attendance is delivered and is included in accrued expenses. Deferred revenue refers to the unearned portion of advertising contracts. All deferred revenue is classified as a current liability. Fathom Events revenue is recognized in the period in which the event is held.      Barter Transactions—The Company enters into barter transactions that exchange advertising program time for products and services used principally for selling and marketing activities. The Company records barter transactions at the estimated fair value of the advertising exchanged based on fair value received for similar advertising from cash paying customers. Revenues for advertising barter transactions are recognized when advertising is provided, and products and services received are charged to expense when used. The Company limits the use of such barter transactions to items and services for which it would otherwise have paid cash. Any timing differences between the delivery of the bartered revenue and the use of the bartered expense products and services are recorded through deferred revenue. Revenue and expense from barter transactions for the year ended December 29, 2011 were $1.6 million and $1.1 million, respectively, were $1.5 million and $1.1 million for the year ended December 30, 2010, respectively and were not material to the Company's consolidated statements of income for the year ended December 31, 2009.      Operating Costs—Advertising related operating costs primarily include personnel and other costs related to advertising fulfillment, payments due to unaffiliated theatre circuits under the network affiliate agreements, and to a lesser extent, production costs of non-digital advertising.      Fathom Events operating costs include revenue share under the amended and restated ESAs to the founding members and revenue share to affiliate theatres under separate agreements, payments to event content producers and other direct costs of the meeting or event, including equipment rental, catering and movie tickets acquired primarily from the founding members.      Payment to the founding members of a theatre access fee is comprised of a payment per theatre attendee and a payment per digital screen, both of which escalate over time.      Network costs include personnel, satellite bandwidth, repairs, and other costs of maintaining and operating the digital network and preparing advertising and other content for transmission across the digital network. These costs are not specifically allocated between the advertising business and the Fathom Events business.      Leases—The Company leases various office facilities under operating leases with terms ranging from five to 16 years. The Company calculates straight-line rent expense over the initial lease term and renewals that are reasonably assured.      Advertising Costs—Costs related to advertising and other promotional expenditures are expensed as incurred. Due to the nature of the business, the Company has an insignificant amount of advertising costs included in selling and marketing costs on the statements of income.      Cash and Cash Equivalents—All highly liquid debt instruments and investments purchased with an original maturity of three months or less are classified as cash equivalents and are considered available-for-sale securities. There are cash balances in a bank in excess of the federally insured limits or in the form of a money market demand account with a major financial institution.      Restricted Cash—At December 29, 2011 and December 30, 2010, other non-current assets included restricted cash of $0.3 million, which secures a letter of credit used as a lease deposit on NCM LLC's New York office.      Marketable Securities—The Company's short-term and long-term marketable securities 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 marketable securities have effective maturity dates from three to 12 months and long-term marketable securities have effective maturity dates greater than 12 months.      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 December 29, 2011, there was one advertising agency group through which the Company sources national advertising revenue representing approximately 15% of the Company's outstanding gross receivable balance; however, none of the individual contracts related to the advertising agency 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. Receivables consisted of the following, in millions: <div> <table border="0" cellspacing="0"> <tr><td width="55%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="55%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="18%" colspan="3" align="center">As of December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="16%" colspan="3" align="center">As of December 30, 2010</td></tr> <tr valign="bottom"><td width="55%" align="left"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Trade accounts</td> <td width="2%" align="left">$</td> <td width="14%" align="right">98.4</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">100.9</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Other</td> <td width="2%" align="left"> </td> <td width="14%" align="right">4.5</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">3.5</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Less allowance for doubtful accounts</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">(4.3</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(3.7</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="55%" align="left"> Total</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="right">98.6</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">100.7</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div>        Long-lived Assets—Property and equipment is stated at cost, net of accumulated depreciation or amortization. Refer to Note 3. Major renewals and improvements are capitalized, while replacements, maintenance, and repairs that do not improve or extend the lives of the respective assets are expensed currently. In general, the equipment associated with the digital network of the founding member theatres is owned by the founding members, while the equipment associated with network affiliate theatres is owned by the Company. The Company records depreciation and amortization using the straight-line method over the following estimated useful lives: <div> <table style="width: 695px; height: 82px;" border="0" cellspacing="0"> <tr><td width="50%"> </td> <td width="49%"> </td></tr> <tr valign="bottom"><td align="left">Equipment</td> <td align="left">4-10 years</td></tr> <tr valign="bottom"><td align="left">Computer hardware and software</td> <td align="left">3-5 years</td></tr> <tr valign="bottom"><td align="left">Leasehold improvements</td> <td align="left">Lesser of lease term or asset life</td></tr></table></div>        Software and web site development costs developed or obtained for internal use are accounted for in accordance with ASC Subtopic 350-40 Internal Use Software and ASC Subtopic 350-50 Website Development Costs. The subtopics require the capitalization of certain costs incurred in developing or obtaining software for internal use. The majority of software costs and website development costs, which are included in equipment, are depreciated over three to five years. As of December 29, 2011 and December 30, 2010, the Company had a net book value of $9.3 million and $9.2 million, respectively, of capitalized software and website development costs. Approximately $4.8 million, $6.5 million and $6.7 million was recorded for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively, in depreciation expense. For the years ended December 29, 2011, December 30, 2010 and December 31, 2009, the Company recorded $0.9 million, $1.2 million and $1.6 million in research and development expense, respectively.      Construction in progress includes costs relating to installations of equipment into affiliate theatres. Assets under construction are not depreciated until placed into service.      The Company assesses impairment of long-lived assets pursuant with ASC 360 Property, Plant and Equipment. This includes determining if certain triggering events have occurred that could affect the value of an asset. Thus far, we have recorded no impairment charges related to long-lived assets.      Intangible assets—Intangible assets consist of contractual rights and are stated at cost, net of accumulated amortization. Refer to Note 4. The Company records amortization using the straight-line method over the contractual life of the intangibles, corresponding to the term of the ESAs or the term of the contract with the network affiliate. During the year ended December 29, 2011, the Company recorded net intangible assets of $10.4 million, which are amortized over a weighted average amortization period of 16.1 years. As of December 29, 2011, the gross carrying amount of the intangible assets is $295.7 million, with a remaining weighted average amortization period of 24.9 years.      Amounts Due to/from Founding Members—Amounts due to/from founding members in the 2011 and 2010 periods include amounts due for the theatre access fee, offset by a receivable for advertising time purchased by the founding members on behalf of their beverage concessionaire, as well as revenue share earned for Fathom Events plus any amounts outstanding under other contractually obligated payments. Payments to or received from the founding members against outstanding balances are made monthly.      Income Taxes— Income taxes are accounted for under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to be recovered or settled pursuant to the provisions of ASC 740 Income Taxes. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.      The Company records a valuation allowance if it is deemed more likely than not that all or a portion of its deferred income tax assets will not be realized, which will be assessed on an on-going basis. In addition, income tax rules and regulations are subject to interpretation and the application of those rules and regulations require judgment by the Company and may be challenged by the taxation authorities. The Company follows ASC 740-10-25, which requires the use of a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. Only tax positions that meet the more likely than not recognition threshold are recognized. The Company's unrecognized tax benefits or related interest and penalties are immaterial. Refer to Note 6.      Accumulated Other Comprehensive Loss—Accumulated other comprehensive loss is composed of the following (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="42%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="9" align="center">Years Ended</td></tr> <tr><td colspan="10"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Beginning Balance</td> <td align="right">$</td> <td align="right">(17.5</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(11.8</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(18.7</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Change in fair value on cash flow hedge, net of tax</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> of $0.0, $2.5 and $(3.9) million, respectively</td> <td align="right"> </td> <td align="right">0.1</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(9.7</td> <td align="left">)</td> <td align="right"> </td> <td align="right">20.9</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Noncontrolling interest</td> <td align="right"> </td> <td align="right">(0.7</td> <td align="left">)</td> <td align="right"> </td> <td align="right">5.6</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(15.2</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Impact of change in ownership</td> <td align="right"> </td> <td align="right">(0.2</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(2.4</td> <td align="left">)</td> <td align="right"> </td> <td align="right">0.4</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Reclassifications into earnings, net of tax of $(0.3),</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> $(0.5) and $(0.5) million, respectively</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1.0</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.8</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.8</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Ending Balance</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(17.3</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(17.5</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(11.8</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table></div>        Debt Issuance Costs—In relation to the issuance of long-term debt discussed in Note 9, there is a balance of $12.6 million and $7.3 million in deferred financing costs as of December 29, 2011 and December 30, 2010, respectively. These debt issuance costs are being straight-line amortized over the terms of the underlying obligation and are included in interest on borrowings, which approximates the effective interest method. In 2011, NCM LLC recorded a $1.5 million non-cash charge for deferred loan fees associated with the balance of the senior secured credit facility that was prepaid and paid $9.1 million in debt issuance costs in relation to the debt restructuring discussed in Note 9. For each of the years ended December 29, 2011, December 30, 2010, and December 31, 2009 the Company amortized $2.3 million, $1.9 million, and $1.9 million, respectively.      Other Investment— Through March 15, 2010, the Company accounted for its investment in RMG Networks, Inc., ("RMG") 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. During the fourth quarter of 2011, the Company recorded an impairment to the value of the investment and the carrying value was adjusted to zero due to the potential of the Company being further diluted by a new round of preferred equity that was senior to the Company's investment, which occurred in early 2012. At December 29, 2011 and December 30, 2010, the Company's ownership in RMG was approximately 19%, respectively, of the issued and outstanding preferred and common stock of RMG. Refer to Note 13 for additional discussion.      During the fourth quarter of 2011, the Company received equity securities in a privately held company as consideration for an advertising contract, which the Company accounted for as a cost method investment. Refer to Note 13 for additional discussion.      Share-Based Compensation—The Company issues two types of share-based compensation awards: stock options and non-vested (restricted) stock. Compensation cost of non-vested stock is valued based on the market price on the grant date, the probability of vesting and is expensed over the vesting period. Compensation cost of stock options is based on the estimated grant date fair value using the Black-Scholes option pricing model, which requires that the Company make estimates of various factors. Under the fair value recognition provisions of ASC 718 Compensation – Stock Compensation, the Company recognizes share-based compensation net of an estimated forfeiture rate, and therefore only recognizes compensation cost for those shares expected to vest over the requisite service period of the award. Refer to Note 10.      Derivative Instruments— 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 the entire $550.0 million of currently outstanding 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.      During 2008, cash flow hedge accounting was discontinued for one of the interest swap agreements. The Company did not elect cash flow hedge accounting and the interest rate swap with the new counterparty is recorded at fair value with any change in the fair value recorded in the statements of income. In accordance with ASC 815 Derivatives and Hedging, the net derivative loss related to the discontinued cash flow hedge is being amortized to interest expense over the remaining term of the interest rate swap.      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 on which we have elected and qualify for cash flow hedge accounting (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 December 29, 2011 and December 30, 2010.      The fair value of the Company's interest rate swaps are 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. Refer to Note 14.      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.      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> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="9" align="center">Years Ended</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Net income attributable to NCM, Inc</td> <td align="right">$</td> <td align="right">31.5</td> <td align="left"> </td> <td align="right">$</td> <td align="right">29.2</td> <td align="left"> </td> <td align="right">$</td> <td align="right">26.1</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Subsidiary equity (returned) issued for purchase of intangible asset</td> <td align="right"> </td> <td align="right">(2.7</td> <td align="left">)</td> <td align="right"> </td> <td align="right">58.9</td> <td align="left"> </td> <td align="right"> </td> <td align="right">11.8</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Income tax and other impacts of subsidiary ownership changes</td> <td align="right"> </td> <td align="right">(13.7</td> <td align="left">)</td> <td align="right"> </td> <td align="right">42.6</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(11.4</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">NCM, Inc. investment in subsidiary</td> <td align="right"> </td> <td align="right">0.0</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(174.9</td> <td align="left">)</td> <td align="right"> </td> <td align="right">0.0</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Issuance of shares</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">174.6</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Change from net income attributable to NCM, Inc. and transfers from</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">noncontrolling interests</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">15.1</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">130.4</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">26.5</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div>   Recent Accounting Pronouncements      In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs ("ASU 2011-04"), which amends certain fair value measurements and disclosures. The Company adopted ASU 2011-04 effective December 15, 2011 with no impact on its consolidated financial statements.      In June 2011, the FASB issued Accounting Standards Update 2011-05, Presentation of Comprehensive Income ("ASU 2011-05"), which is an amendment to ASC 220 Comprehensive Income. Under ASU 2011-05, 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. The Company adopted ASU 2011-05 effective December 15, 2011. Since the provisions of ASU 2011-05 are presentation related only, the adoption of ASU 2011-05 does not have a material effect on the Company's consolidated financial statements.      In December 2011, the FASB issued Accounting Standards Update 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05 ("ASU 2011-12"). ASU 2011-12 defers the specific requirement within ASU 2011-05 to present on the face of the financial statements items that are reclassified from accumulated other comprehensive income to net income separately with their respective components of net income and other comprehensive income. The effective dates for ASU 2011-12 are consistent with the effective dates for ASU 2011-05 and, similar to the Company's evaluation for the adoption of ASU 2011-05, the adoption of this guidance does not have a material effect on the Company's consolidated financial statements.      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>

3900000

3500000

600000

21700000

-8900000

1100000

18600000

20000000

18600000

200000

100000

2600000

-600000

1900000

-200000

-1700000

100000

174900000

9100000

79100000

90500000

86600000

27500000

34700000

45300000

300000

200000

300000

10700000

51200000

15900000

2000000

8400000

10100000

13500000

<div> 11. EMPLOYEE BENEFIT PLANS      NCM sponsors the NCM 401(k) Profit Sharing Plan (the "Plan") under Section 401(k) of the Internal Revenue Code of 1986, as amended, for the benefit of substantially all full-time employees. The Plan provides that participants may contribute up to 20% of their compensation, subject to Internal Revenue Service limitations. Employee contributions are invested in various investment funds based upon election made by the employee. The Company made discretionary contributions of $0.9 million, $0.9 million and $0.8 million during the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. </div>

0.01

10000000

1700000

1800000

124300000

335000000

3600000

3900000

1900000

2200000

27500000

3000000

4900000

4200000

101300000

109100000

100600000

<div> 3. PROPERTY AND EQUIPMENT <div> <table style="width: 843px; height: 234px;" border="0" cellspacing="0"> <tr><td width="59%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="59%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="18%" colspan="3" align="center">As of December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="16%" colspan="3" align="center">As of December 30, 2010</td></tr> <tr valign="bottom"><td width="59%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left"> </td> <td width="34%" colspan="6" align="center">(in millions)</td></tr> <tr valign="bottom"><td width="59%" align="left">Equipment, computer hardware and software</td> <td style="text-indent: 5px;" width="2%" align="left">$</td> <td width="14%" align="right">73.7</td> <td width="2%" align="left"> </td> <td width="2%" align="right">$</td> <td width="12%" align="right">63.3</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">Leasehold Improvements</td> <td width="2%" align="left"> </td> <td width="14%" align="right">3.4</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="right">1.7</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">Less accumulated depreciation</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">(54.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(46.4</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="59%" align="left"> Subtotal</td> <td width="2%" align="left"> </td> <td width="14%" align="right">22.3</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="right">18.6</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">Construction in Progress</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">2.3</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">1.2</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="59%" align="left"> Total property and equipment</td> <td style="border-bottom: #000000 3px double; text-indent: 5px;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="right">24.6</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">19.8</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div>        For the years ended December 29, 2011, December 30, 2010, and December 31, 2009, the Company recorded depreciation of $8.8 million, $11.4 million, and $12.5 million, respectively. </div>

19800000

24600000

<div> 17. QUARTERLY FINANCIAL DATA (UNAUDITED) (in millions, except per share data) <div> <table border="0" cellspacing="0"> <tr><td width="41%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left">2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">First Quarter</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">Second Quarter</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">Third Quarter</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">Fourth Quarter</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Operations:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> Revenues</td> <td align="right">$</td> <td align="right">70.8</td> <td align="left"> </td> <td align="right">$</td> <td align="right">114.0</td> <td align="right">$</td> <td align="right">136.0</td> <td align="right">$</td> <td align="right">114.6</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> Operating Expenses</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">55.8</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">63.8</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">62.0</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">60.1</td></tr> <tr valign="bottom"><td align="left">Operating Income</td> <td align="right"> </td> <td align="right">15.0</td> <td align="left"> </td> <td align="right"> </td> <td align="right">50.2</td> <td align="right"> </td> <td align="right">74.0</td> <td align="right"> </td> <td align="right">54.5</td></tr> <tr valign="bottom"><td align="left">Consolidated Net Income</td> <td align="right"> </td> <td align="right">1.6</td> <td align="left"> </td> <td align="right"> </td> <td align="right">28.3</td> <td align="right"> </td> <td align="right">45.9</td> <td align="right"> </td> <td align="right">24.8</td></tr> <tr valign="bottom"><td align="left">Net income (loss) attributable to NCM, Inc</td> <td align="right"> </td> <td align="right">(1.0</td> <td align="left">)</td> <td align="right"> </td> <td align="right">9.0</td> <td align="right"> </td> <td align="right">16.8</td> <td align="right"> </td> <td align="right">6.7</td></tr> <tr valign="bottom"><td align="left">Earnings (Loss) per NCM, Inc. share, Basic</td> <td align="right"> </td> <td align="right">(0.02</td> <td align="left">)</td> <td align="right"> </td> <td align="right">0.17</td> <td align="right"> </td> <td align="right">0.31</td> <td align="right"> </td> <td align="right">0.12</td></tr> <tr valign="bottom"><td align="left">Earnings (Loss) per NCM, Inc. share, Diluted (1)</td> <td align="right"> </td> <td align="right">(0.02</td> <td align="left">)</td> <td align="right"> </td> <td align="right">0.16</td> <td align="right"> </td> <td align="right">0.31</td> <td align="right"> </td> <td align="right">0.12</td></tr> <tr><td colspan="10"> </td></tr> <tr><td colspan="10"> </td></tr> <tr valign="bottom"><td align="left">2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="3" align="center">First Quarter</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">Second Quarter</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">Third Quarter</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">Fourth Quarter</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Operations:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> Revenues</td> <td align="right">$</td> <td align="right">84.6</td> <td align="left"> </td> <td align="right">$</td> <td align="right">99.1</td> <td align="right">$</td> <td align="right">125.7</td> <td align="right">$</td> <td align="right">118.1</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" align="left"> Operating Expenses</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">58.2</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">55.8</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">58.6</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">64.3</td></tr> <tr valign="bottom"><td align="left">Operating Income</td> <td align="right"> </td> <td align="right">26.4</td> <td align="left"> </td> <td align="right"> </td> <td align="right">43.3</td> <td align="right"> </td> <td align="right">67.1</td> <td align="right"> </td> <td align="right">53.8</td></tr> <tr valign="bottom"><td align="left">Consolidated Net Income</td> <td align="right"> </td> <td align="right">8.7</td> <td align="left"> </td> <td align="right"> </td> <td align="right">21.9</td> <td align="right"> </td> <td align="right">42.6</td> <td align="right"> </td> <td align="right">35.9</td></tr> <tr valign="bottom"><td align="left">Net income attributable to NCM, Inc</td> <td align="right"> </td> <td align="right">1.2</td> <td align="left"> </td> <td align="right"> </td> <td align="right">4.6</td> <td align="right"> </td> <td align="right">11.8</td> <td align="right"> </td> <td align="right">11.6</td></tr> <tr valign="bottom"><td align="left">Earnings per NCM, Inc. share, Basic (1)</td> <td align="right"> </td> <td align="right">0.03</td> <td align="left"> </td> <td align="right"> </td> <td align="right">0.11</td> <td align="right"> </td> <td align="right">0.25</td> <td align="right"> </td> <td align="right">0.22</td></tr> <tr valign="bottom"><td align="left">Earnings per NCM, Inc. share, Diluted (1)</td> <td align="right"> </td> <td align="right">0.03</td> <td align="left"> </td> <td align="right"> </td> <td align="right">0.11</td> <td align="right"> </td> <td align="right">0.24</td> <td align="right"> </td> <td align="right">0.22</td></tr></table></div>   (1) Earnings per share in each quarter is computed using the weighted-average number of shares outstanding during that quarter while earnings per share for the full year is computed using the weighted average number of shares outstanding during the year. </div>

52700000

52600000

55400000

<div> 8. RELATED-PARTY TRANSACTIONS      Founding Member Transactions –Following is a summary of the transactions between the Company and the founding members (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td> <td width="13%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="6" align="center">Years ended</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" colspan="2" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Included in the Consolidated Statements of Income:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Revenues:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Beverage concessionaire revenue ( in Advertising</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> revenue) (1)</td> <td align="right">$</td> <td align="right">38.0</td> <td align="right">$</td> <td align="right">37.2</td> <td align="right">$</td> <td align="right">36.3</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Advertising inventory revenue (in Advertising</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> revenue) (2)</td> <td align="right"> </td> <td align="right">0.2</td> <td align="right"> </td> <td align="right">1.3</td> <td align="right"> </td> <td align="right">1.9</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Operating Expenses:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Use of screens/theatres for Fathom Events (in Fathom</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Events operating costs) (3)</td> <td align="right"> </td> <td align="right">8.3</td> <td align="right"> </td> <td align="right">7.3</td> <td align="right"> </td> <td align="right">6.7</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Purchase of movie tickets and concession products</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> (in Fathom Events operating costs) (5)</td> <td align="right"> </td> <td align="right">1.0</td> <td align="right"> </td> <td align="right">1.3</td> <td align="right"> </td> <td align="right">1.0</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Theatre access fee (4)</td> <td align="right"> </td> <td align="right">55.4</td> <td align="right"> </td> <td align="right">52.6</td> <td align="right"> </td> <td align="right">52.7</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Purchase of movie tickets and concession products</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> (in Selling and marketing costs) (5)</td> <td align="right"> </td> <td align="right">1.1</td> <td align="right"> </td> <td align="right">1.2</td> <td align="right"> </td> <td align="right">1.1</td></tr> <tr valign="bottom"><td align="left">Included in the Consolidated Balance Sheets:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Integration payments (in Intangible assets) (6)</td> <td align="right"> </td> <td align="right">0.7</td> <td align="right"> </td> <td align="right">3.9</td> <td align="right"> </td> <td align="right">3.2</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> Integration payments (in Additional paid in capital</td> <td align="right"> </td> <td align="right">0.0</td> <td align="right"> </td> <td align="right">0.0</td> <td align="right"> </td> <td align="right">0.1</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left"> (deficit) (7)</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr></table></div>   (1) For the years ended December 29, 2011, December 30, 2010 and December 31, 2009, 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"). (2) The value of such purchases are calculated by reference to NCM LLC's advertising rate card. (3) These payments are at rates (percentage of event revenue) included in the ESAs based on the nature of the event. (4) Comprised of a payment per theatre attendee and a payment per digital screen with respect to the founding member theatres included in the Company's network. (5) Used primarily for marketing to NCM LLC's advertising clients and marketing resale to Fathom Business customers. (6) 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 made 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. (7) On January 26, 2006, AMC acquired the Loews Cineplex Entertainment Inc. ("AMC Loews") theatre circuit and NCM LLC issued common membership units to AMC in exchange for the exclusive access to the theatres. AMC Loews had a pre-existing advertising agreement and, as a result, AMC made integration payments pursuant to the Loews screen integration agreement. These AMC Loews payments were made on a quarterly basis in arrears through February 2009 for Star Theatres in accordance with certain run-out provisions.      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 years ended December 29, 2011, December 30, 2010 and December 31, 2009 are as follows (in millions): <div> <table style="width: 780px; height: 157px;" border="0" cellspacing="0"> <tr><td width="48%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="14%"> </td></tr> <tr valign="bottom"><td width="48%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" colspan="2" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="14%" colspan="2" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="16%" colspan="2" align="center">2009</td></tr> <tr valign="bottom"><td width="48%" align="left">AMC</td> <td width="2%" align="right">$</td> <td width="13%" align="right">25.3</td> <td width="2%" align="right">$</td> <td width="12%" align="right">28.8</td> <td width="2%" align="right">$</td> <td width="14%" align="right">25.8</td></tr> <tr valign="bottom"><td width="48%" align="left">Cinemark</td> <td width="2%" align="right"> </td> <td width="13%" align="right">25.5</td> <td width="2%" align="right"> </td> <td width="12%" align="right">24.0</td> <td width="2%" align="right"> </td> <td width="14%" align="right">20.8</td></tr> <tr valign="bottom"><td width="48%" align="left">Regal</td> <td width="2%" align="right"> </td> <td width="13%" align="right">32.2</td> <td width="2%" align="right"> </td> <td width="12%" align="right">32.3</td> <td width="2%" align="right"> </td> <td width="14%" align="right">34.9</td></tr> <tr valign="bottom"><td width="48%" align="left">NCM, Inc</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">78.7</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">71.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">57.8</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="48%" align="left"> Total</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="13%" align="right">161.7</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">156.1</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="right">139.3</td></tr></table></div>        The available cash payment by NCM LLC to its founding members for the quarter ended December 29, 2011 of $22.1 million, which is included in amounts due to founding members at December 29, 2011, will be made in the first quarter of 2012. The available cash payment by NCM LLC to its founding members for the quarter ended December 30, 2010 of $25.7 million was made in the first quarter of 2011.      During 2010, in connection with AMC's acquisition of Kerasotes, AMC reimbursed NCM LLC approximately $3.0 million for the net book value of NCM LLC capital expenditures invested in digital network technology within the acquired Kerasotes theatres prior to the acquisition date. Amounts due to founding members at December 29, 2011 were comprised of the following (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="32%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="32%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" colspan="3" align="center">AMC</td> <td style="border-bottom: #000000 1px solid;" width="14%" colspan="3" align="center">Cinemark</td> <td style="border-bottom: #000000 1px solid;" width="15%" colspan="3" align="center">Regal</td> <td style="border-bottom: #000000 1px solid;" width="16%" colspan="3" align="center">Total</td></tr> <tr valign="bottom"><td width="32%" align="left">Theatre access fees, net of beverage revenues</td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.5</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.5</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="11%" align="right">0.6</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">1.6</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="32%" align="left">Cost and other reimbursement</td> <td width="2%" align="left"> </td> <td width="10%" align="right">(0.5</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="10%" align="right">(0.5</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="11%" align="right">(0.7</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="12%" align="right">(1.7</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="32%" align="left">Distributions payable, net</td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">6.7</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">6.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">8.6</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">22.1</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="32%" align="left"> Total</td> <td width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="10%" align="right">6.7</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="10%" align="right">6.8</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">8.5</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">22.0</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div>   Amounts due to founding members at December 30, 2010 were comprised of the following (in millions): <div> <table border="0" cellspacing="0"> <tr><td width="32%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="32%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" colspan="3" align="center">AMC</td> <td style="border-bottom: #000000 1px solid;" width="14%" colspan="3" align="center">Cinemark</td> <td style="border-bottom: #000000 1px solid;" width="15%" colspan="3" align="center">Regal</td> <td style="border-bottom: #000000 1px solid;" width="16%" colspan="3" align="center">Total</td></tr> <tr valign="bottom"><td width="32%" align="left">Theatre access fees, net of beverage revenues</td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.5</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.4</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="11%" align="right">0.5</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">1.4</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="32%" align="left">Cost and other reimbursement</td> <td width="2%" align="left"> </td> <td width="10%" align="right">(0.2</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="10%" align="right">(0.5</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="11%" align="right">(0.0</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="12%" align="right">(0.7</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="32%" align="left">Distributions payable, net</td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">8.5</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">7.6</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">8.4</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">24.5</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="32%" align="left"> Total</td> <td width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="10%" align="right">8.8</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="10%" align="right">7.5</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">8.9</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">25.2</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div>   See Note 6 for information regarding taxes payable to founding members under tax sharing agreement. <div> </div>      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 to Showplex in its theatre locations. The affiliate agreement was entered into at terms that are similar to those of the Company's other network affiliates. Included in advertising operating costs is approximately $0.2 million for the year ended December 29, 2011. As of December 29, 2011, approximately $0.1 million 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 to LA Live in its theatre complex. The affiliate agreement was entered into at terms that are similar to those of the Company's other network affiliates. Included in advertising operating costs are approximately $0.3 million and $0.1 million for the years ended December 29, 2011 and December 30, 2010, respectively, for payments to the affiliate under the agreement. As of December 29, 2011 and December 30, 2010 approximately $0.1 million and $0.1 million, respectively, is included in accounts payable for amounts due to LA Live under the agreement. The amounts as of and for the year ended December 31, 2009 were inconsequential.      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 and Fathom Events to Starplex in its theatre locations. The affiliate agreement was entered into at terms that are similar to those of the Company's other network affiliates. Included in advertising operating costs are $2.9 million and $1.3 million, respectively, for the years ended December 29, 2011 and December 30, 2010, for its shares of advertising sold in its theatres under the affiliate agreement. As of December 29, 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>

3000000

152500000

317200000

-20500000

-34900000

38200000

38500000

38200000

380700000

427500000

435400000

<div> 16. VALUATION AND QUALIFYING ACCOUNTS (in millions) <div> <table style="width: 652px; height: 397px;" border="0" cellspacing="0"> <tr><td width="44%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td width="44%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="56%" colspan="9" align="center">Years Ended</td></tr> <tr valign="bottom"><td width="44%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="20%" colspan="3" align="center">December 29, 2011</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="18%" colspan="3" align="center">December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="18%" colspan="3" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td width="44%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">ALLOWANCE FOR DOUBTFUL</td> <td width="3%" align="left"> </td> <td width="14%" align="left"> </td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="left"> </td> <td width="4%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="left"> </td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="44%" align="left">ACCOUNTS:</td> <td width="3%" align="left"> </td> <td width="14%" align="left"> </td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="left"> </td> <td width="4%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="left"> </td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="44%" align="left"> Balance at beginning of period</td> <td width="3%" align="left">$</td> <td width="14%" align="right">3.7</td> <td width="3%" align="left"> </td> <td width="3%" align="left">$</td> <td width="11%" align="right">3.6</td> <td width="4%" align="left"> </td> <td width="3%" align="left">$</td> <td width="11%" align="right">2.6</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" width="44%" align="left"> Provision for bad debt</td> <td width="3%" align="left"> </td> <td width="14%" align="right">2.1</td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="right">2.3</td> <td width="4%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="right">2.4</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" width="44%" align="left"> Write-offs, net</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">(1.5</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(2.2</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(1.4</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="44%" align="left"> Balance at end of period</td> <td style="border-bottom: #000000 3px double;" width="3%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="right">4.3</td> <td style="border-bottom: #000000 3px double;" width="3%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="3%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">3.7</td> <td style="border-bottom: #000000 3px double;" width="4%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="3%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">3.6</td> <td style="border-bottom: #000000 3px double;" width="4%" align="left"> </td></tr> <tr><td width="100%" colspan="10"> </td></tr> <tr valign="bottom"><td width="44%" align="center">VALUATION ALLOWANCE ON</td> <td width="3%" align="left"> </td> <td width="14%" align="left"> </td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="left"> </td> <td width="4%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="left"> </td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left"> DEFERRED TAX ASSETS:</td> <td width="3%" align="left"> </td> <td width="14%" align="left"> </td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="left"> </td> <td width="4%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="left"> </td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="44%" align="left"> Balance at beginning of period</td> <td width="3%" align="left">$</td> <td width="14%" align="right">1.7</td> <td width="3%" align="left"> </td> <td width="3%" align="left">$</td> <td width="11%" align="right">1.9</td> <td width="4%" align="left"> </td> <td width="3%" align="left">$</td> <td width="11%" align="right">2.0</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" width="44%" align="left"> Valuation allowance recorded</td> <td width="3%" align="left"> </td> <td width="14%" align="right">1.5</td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="right">0.0</td> <td width="4%" align="left"> </td> <td width="3%" align="left"> </td> <td width="11%" align="right">0.0</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" width="44%" align="left"> Adjustment</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(0.2</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(0.1</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="44%" align="left"> Balance at end of period</td> <td style="border-bottom: #000000 3px double;" width="3%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="right">3.2</td> <td style="border-bottom: #000000 3px double;" width="3%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="3%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">1.7</td> <td style="border-bottom: #000000 3px double;" width="4%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="3%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">1.9</td> <td style="border-bottom: #000000 3px double;" width="4%" align="left"> </td></tr></table></div> </div>

<div> 15. SEGMENT REPORTING      Advertising revenue accounts for 88.7%, 88.7% and 88.0%, of consolidated revenue for the years ended December 29, 2011, December 30, 2010 and December 31, 2009, respectively. 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. Refer to Note 1-Segment Reporting. <div> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="2%"> </td> <td width="16%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="9" align="center">Year Ended December 29, 2011 (in millions)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="4" colspan="2" align="center">Advertising</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" colspan="2" align="center">Fathom Events and Other</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" colspan="3" align="center">Network, Administrative and Unallocated Costs</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" colspan="2" align="center">Consolidated</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Revenue</td> <td align="right">$</td> <td align="right">386.1</td> <td align="right">$</td> <td align="right">49.2</td> <td align="right">$</td> <td align="right">0.1</td> <td align="left"> </td> <td align="right">$</td> <td align="right">435.4</td></tr> <tr valign="bottom"><td align="left">Operating costs</td> <td align="right"> </td> <td align="right">80.0</td> <td align="right"> </td> <td align="right">34.1</td> <td align="right"> </td> <td align="right">18.6</td> <td align="left"> </td> <td align="right"> </td> <td align="right">132.7</td></tr> <tr valign="bottom"><td align="left">Selling and marketing costs</td> <td align="right"> </td> <td align="right">49.2</td> <td align="right"> </td> <td align="right">7.9</td> <td align="right"> </td> <td align="right">2.7</td> <td align="left"> </td> <td align="right"> </td> <td align="right">59.8</td></tr> <tr valign="bottom"><td align="left">Administrative and other costs</td> <td align="right"> </td> <td align="right">2.6</td> <td align="right"> </td> <td align="right">0.8</td> <td align="right"> </td> <td align="right">27.0</td> <td align="left"> </td> <td align="right"> </td> <td align="right">30.4</td></tr> <tr valign="bottom"><td align="left">Depreciation and amortization</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">18.8</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">18.8</td></tr> <tr valign="bottom"><td align="left"> Operating income</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">254.3</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">6.4</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(67.0</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">193.7</td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="42%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td width="42%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="57%" colspan="9" align="center">Year Ended December 30, 2010 (in millions)</td></tr> <tr valign="bottom"><td width="42%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="14%" colspan="2" align="center">Advertising</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="14%" colspan="2" align="center">Fathom Events and Other</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="16%" colspan="3" align="center">Network, Administrative and Unallocated Costs</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="13%" colspan="2" align="center">Consolidated</td></tr> <tr valign="bottom"><td width="42%" align="left"> </td></tr> <tr valign="bottom"><td width="42%" align="left"> </td></tr> <tr valign="bottom"><td width="42%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Revenue</td> <td width="2%" align="right">$</td> <td width="12%" align="right">379.4</td> <td width="2%" align="right">$</td> <td width="12%" align="right">48.0</td> <td width="2%" align="right">$</td> <td width="12%" align="right">0.1</td> <td width="2%" align="left"> </td> <td width="2%" align="right">$</td> <td width="11%" align="right">427.5</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Operating costs</td> <td width="2%" align="right"> </td> <td width="12%" align="right">74.3</td> <td width="2%" align="right"> </td> <td width="12%" align="right">32.4</td> <td width="2%" align="right"> </td> <td width="12%" align="right">20.0</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">126.7</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Selling and marketing costs</td> <td width="2%" align="right"> </td> <td width="12%" align="right">46.5</td> <td width="2%" align="right"> </td> <td width="12%" align="right">8.1</td> <td width="2%" align="right"> </td> <td width="12%" align="right">3.3</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">57.9</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Administrative and other costs</td> <td width="2%" align="right"> </td> <td width="12%" align="right">3.2</td> <td width="2%" align="right"> </td> <td width="12%" align="right">0.8</td> <td width="2%" align="right"> </td> <td width="12%" align="right">30.5</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">34.5</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Depreciation and amortization</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">17.8</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">17.8</td></tr> <tr valign="bottom"><td width="42%" align="left"> Operating income</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">255.4</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">6.7</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">(71.5</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">)</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">190.6</td></tr> <tr><td width="99%" colspan="10"> </td></tr> <tr valign="bottom"><td width="42%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="57%" colspan="9" align="center">Year Ended December 31, 2009 (in millions)</td></tr> <tr valign="bottom"><td width="42%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="14%" colspan="2" align="center">Advertising</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="14%" colspan="2" align="center">Fathom Events and Other</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="16%" colspan="3" align="center">Network, Administrative and Unallocated Costs</td> <td style="border-bottom: #000000 1px solid;" rowspan="4" width="13%" colspan="2" align="center">Consolidated</td></tr> <tr valign="bottom"><td width="42%" align="left"> </td></tr> <tr valign="bottom"><td width="42%" align="left"> </td></tr> <tr valign="bottom"><td width="42%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Revenue</td> <td width="2%" align="right">$</td> <td width="12%" align="right">335.1</td> <td width="2%" align="right">$</td> <td width="12%" align="right">45.5</td> <td width="2%" align="right">$</td> <td width="12%" align="right">0.1</td> <td width="2%" align="left"> </td> <td width="2%" align="right">$</td> <td width="11%" align="right">380.7</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Operating costs</td> <td width="2%" align="right"> </td> <td width="12%" align="right">72.7</td> <td width="2%" align="right"> </td> <td width="12%" align="right">29.1</td> <td width="2%" align="right"> </td> <td width="12%" align="right">18.6</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">120.4</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Selling and marketing costs</td> <td width="2%" align="right"> </td> <td width="12%" align="right">40.6</td> <td width="2%" align="right"> </td> <td width="12%" align="right">8.6</td> <td width="2%" align="right"> </td> <td width="12%" align="right">1.0</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">50.2</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Administrative and other costs</td> <td width="2%" align="right"> </td> <td width="12%" align="right">2.8</td> <td width="2%" align="right"> </td> <td width="12%" align="right">0.9</td> <td width="2%" align="right"> </td> <td width="12%" align="right">22.6</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">26.3</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="42%" align="left">Depreciation and amortization</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">0.0</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">15.6</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">15.6</td></tr> <tr valign="bottom"><td width="42%" align="left"> Operating income</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">219.0</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">6.9</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">(57.7</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">)</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">168.2</td></tr> <tr><td width="99%" colspan="10"> </td></tr> <tr><td width="99%" colspan="10"> </td></tr> <tr valign="bottom"><td width="70%" colspan="5" align="left">   The following is a summary of revenues by category (in millions):</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="left"> </td></tr> <tr><td width="99%" colspan="10"> </td></tr> <tr valign="bottom"><td width="42%" align="left"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="43%" colspan="7" align="center">Years Ended</td></tr> <tr valign="bottom"><td width="42%" align="left"> </td> <td rowspan="2" width="2%" align="center"> </td> <td rowspan="2" width="12%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="14%" colspan="2" align="center">December 29, 2011 </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="16%" colspan="3" align="center">December 30, 2010</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="13%" colspan="2" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td width="42%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 7px;" width="42%" align="left">National Advertising Revenue</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="right">$</td> <td width="12%" align="right">267.5</td> <td width="2%" align="right">$</td> <td width="12%" align="right">271.9</td> <td width="2%" align="left"> </td> <td width="2%" align="right">$</td> <td width="11%" align="right">236.8</td></tr> <tr valign="bottom"><td style="text-indent: 7px;" width="56%" colspan="3" align="left">Founding Member Advertising Revenue from</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" width="42%" align="left">Beverage Concessionaire Agreements</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="right">38.0</td> <td width="2%" align="right"> </td> <td width="12%" align="right">37.2</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">36.3</td></tr> <tr valign="bottom"><td style="text-indent: 7px;" width="42%" align="left">Local Advertising Revenue</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="right">80.6</td> <td width="2%" align="right"> </td> <td width="12%" align="right">70.3</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">62.0</td></tr> <tr valign="bottom"><td style="text-indent: 7px;" width="42%" align="left">Fathom Consumer Revenue</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="right">35.0</td> <td width="2%" align="right"> </td> <td width="12%" align="right">31.5</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">28.6</td></tr> <tr valign="bottom"><td style="text-indent: 7px;" width="42%" align="left">Fathom Business Revenue</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="right">14.2</td> <td width="2%" align="right"> </td> <td width="12%" align="right">16.5</td> <td width="2%" align="left"> </td> <td width="2%" align="right"> </td> <td width="11%" align="right">16.9</td></tr> <tr valign="bottom"><td style="text-indent: 7px;" width="42%" align="left">Other Revenue</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">0.1</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">0.1</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.1</td></tr> <tr valign="bottom"><td width="42%" align="left"> Total Revenues</td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">435.4</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="12%" align="right">427.5</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="11%" align="right">380.7</td></tr></table></div> </div>

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<div> 7. CAPITAL STOCK      As of December 29, 2011, the Company has authorized capital stock of 175,000,000 shares of common stock, par value of $0.01 per share, and 10,000,000 shares of preferred stock, par value of $0.01 per share. There were no shares of preferred stock issued or outstanding as of December 29, 2011. There were 53,934,605 shares of common stock issued and outstanding as of December 29, 2011.               The holders of common stock are entitled to one vote per share on all matters submitted for action by the stockholders. Holders of common stock are entitled to share equally, share for share, in declared dividends.      The authorized but unissued shares of common stock and preferred stock are available for future issuance without stockholder approval. These additional shares may be used for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and exchange on a one-for-one basis under the founding members' right to convert their NCM LLC membership units into Company common stock.      In addition, as of December 29, 2011, the Company had 2,973,786 shares reserved for future issuance under its Equity Incentive Plan. </div>

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<div> 18. SUBSEQUENT EVENTS      On February 21, 2012, the Company declared a cash dividend of $0.22 per share (approximately $12.0 million) on each share of the Company's common stock (including outstanding restricted stock) to stockholders of record on March 8, 2012 to be paid on March 22, 2012.      During early 2012, the Company restructured Fathom Events to place more focus on the Fathom Consumer division. Based on historical and expected future trends the Company believes the Fathom Consumer division has greater future growth prospects and is more in aligned with the movie exhibition business and the Company's strategy of becoming a more powerful digital media platform. The Company will continue to operate the Fathom Business division for a portion of the first quarter of 2012 to satisfy contractual obligations for events. Despite the revenue loss ($14.2 million in 2011), due to the reduction in direct expenses as well as indirect expenses such as operating, selling and marketing and administrative costs, the impact on the Company's future operating income is not expected to be material. </div>

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