NOTE 2 MERGER Parent and Wanda, a Chinese private conglomerate, completed a Merger on August 30, 2012 in which Wanda acquired all of the outstanding capital stock of Parent. Parent merged with Wanda Film Exhibition Co. Ltd., ("Merger Subsidiary"), a wholly-owned indirect subsidiary of Wanda, whereby Merger Subsidiary merged with and into Parent with Parent continuing as the surviving corporation and as a wholly-owned indirect subsidiary of Wanda. The merger consideration totaled $701,811,000 with $700,000,000 invested by Wanda and $1,811,000 invested by members of management. Wanda also acquired cash, corporate borrowings and capital and financing lease obligations in connection with the Merger as described below. As a result of the Merger and related change of control, the Company applied "push down" accounting which requires allocation of the Merger consideration to the estimated fair values of the assets and liabilities acquired in the Merger. The allocation of Merger consideration was based on management's judgment after evaluating several factors, including a preliminary valuation assessment. The allocation of Merger consideration is preliminary and subject to changes as an appraisal of both tangible and intangible assets and liabilities is finalized. The appraisals which are not yet finalized include measurements including a combination of income and market approaches. The preliminary allocation represents managements' current best estimate of fair value, but these amounts could change as additional information is obtained and evaluated. The following is a summary of the preliminary allocation of the Merger consideration: (In thousands) Total Cash $ 101,641 Receivables, net 28,278 Other current assets 51,090 Property, net(1) 1,062,115 Intangible assets, net(2) 240,200 Goodwill(3) 2,160,678 Other long-term assets(4) 448,785 Accounts payable (134,186 ) Accrued expenses and other liabilities (138,606 ) Deferred revenues and income(5) (117,841 ) Corporate borrowings(6) (2,086,926 ) Capital and financing lease o