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Acctng

Cineplex Limited and Famous Players Limited

Details of Company Acquired:
Purchase Consideration = $468,806,000 plus transaction costs of $4,010,000 less net cash flow of famous players business from and including April 29, 2005 to closing of the acquisition of $20,118,000 (to be for the account of the Partnership in the form of a purchase price adjustment) = $452,698,000 (page 68, 2005 annual report)
Percent of ownership acquired = 100%
Date of Acquisition: transaction closed on July 22, 2005 (page 17, 2005 annual report)
Acquisition steps: all acquired at once

Allocation of Purchase Discrepancy:
The purchase method was used for this acquisition and the purchase discrepancy is as follows:

Assets and Liabilities Acquired 2006 (pg 56) 2005 (pg 68)
Property, Equipment and Leaseholds               $318,809                 $316,555
Advertising Contracts 23,300 23,300
Trademarks and Trade Names 33,200 33,200
Goodwill 191,881 197,090
Fair value of leases – assets 17,058 17,058
Fair value of leases – liabilities (22,016) (22,016)
Net pension liability (6,632) (6,632)
Net working capital deficiency (34,933) (36,062)
Other liabilities (7,954) (9,684)
Capital leases (39,758) (39,993)
Net Assets 472,955 472,816
Less: Cash from Acquisition 20,118 20,118
                                                                          $452,837                 $452,698
Consideration Given
Cash paid for Acquisition of Famous Players   $468,806                 $468,806
Less: Cash from Acquisition 20,118 20,118
448,688 448,688
Transaction costs from Acquisition 4,149 4,010
                                                                        $452,837                 $452,698

The purchase price was revised on March 31, 2006. Allocation of the purchase price discrepancy is (pg 56, 2006 annual report):
Property, equipment and leaseholds                 $2,254
Goodwill (5,209)
Net working capital deficiency (1,129)
Other liabilities (1,730)...