National CineMedia, Inc. Fair Value Disclosure
Non-Recurring Measurements—Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These assets include long-lived assets, intangible assets, cost and equity method investments and borrowings.
Long-Lived Assets, Intangible Assets and Other Investments—As described in Note 1—Basis of Presentation and Summary of Significant Accounting Policies, the Company regularly reviews long-lived assets (primarily property, plant and equipment), intangible assets, investments accounted for under the cost or equity method and notes receivable for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable.
When the estimated fair value is determined to be lower than the carrying value of the asset, an impairment charge is recorded to write the asset down to its estimated fair value.
Other investments consisted of the following (in millions):
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As of |
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January 1, 2026 |
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December 26, 2024 |
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Investment in AC JV, LLC |
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$ |
0.8 |
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$ |
0.8 |
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Other investments |
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7.3 |
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3.0 |
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Total |
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$ |
8.1 |
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$ |
3.8 |
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The investment in AC JV was initially valued using comparative market multiples. The other investments were recorded based upon the fair value of the services provided in exchange for the investment. Refer to Note 1—Basis of Presentation and Summary of Significant Accounting Policies for more details. As the inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, they have been classified as Level 3 in the fair value hierarchy. The increase in ‘Other investments’ from December 26, 2024 to January 1, 2026 is due to a $2.0 million cash investment in an entertainment company and advertising services performed in exchange for equity in various companies. During the years ended January 1, 2026 and December 26, 2024, no observable price changes or impairments have been recorded as a result of the Company’s qualitative assessment of identified events or changes in the circumstances of the remaining investments, which resulted in the investments totaling $8.1 million as of January 1, 2026.
Borrowings—The carrying amount of the 2025 Credit Facility is considered a reasonable estimate of fair value due to its floating-rate terms.
Recurring Measurements—All current assets and liabilities are estimated to approximate their fair value due to the short-term nature of these balances. There were no Company assets and liabilities measured on a recurring basis as of January 1, 2026, including cash equivalents or marketable securities. The fair values of the Company’s assets and liabilities measured on a recurring basis as of December 26, 2024 pursuant to ASC 820-10 Fair Value Measurements and Disclosures are as follows (in millions):
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Fair Value Measurements at |
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Fair Value |
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Quoted Prices |
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Significant |
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Significant |
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ASSETS: |
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Cash equivalents (1) |
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$ |
41.2 |
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$ |
41.2 |
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$ |
— |
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$ |
— |
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Short-term marketable securities (2) |
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0.1 |
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— |
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0.1 |
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— |
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Total assets |
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$ |
41.3 |
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$ |
41.2 |
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$ |
0.1 |
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$ |
— |
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The amortized cost basis, aggregate fair value and maturities of the marketable securities the Company held as of December 26, 2024 are as follows:
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As of December 26, 2024 |
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Amortized |
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Aggregate |
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Maturities (1) |
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MARKETABLE SECURITIES: |
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Short-term certificates of deposit |
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$ |
0.1 |
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$ |
0.1 |
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0.1 |
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Total short-term marketable securities |
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0.1 |
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0.1 |
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Total marketable securities |
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$ |
0.1 |
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$ |
0.1 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 26, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 18, 2024 | |
| 2022 | Apr 13, 2023 | |
| 2021 | Mar 3, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Mar 19, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.