Quarterly report pursuant to Section 13 or 15(d)

Investment in Marketable Securities - RealD, Inc.

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Investment in Marketable Securities - RealD, Inc.
9 Months Ended
Sep. 30, 2014
Investment in Marketable Securities - RealD, Inc.

9. Investment in Marketable Securities – RealD, Inc.

The Company owns 1,222,780 shares of RealD, Inc. (“RealD”) and accounts for its investment in RealD as a marketable security. The Company has determined that its RealD shares are available-for-sale securities in accordance with ASC Topic 320-10-35-1, therefore unrealized holding gains and losses are reported as a component of accumulated other comprehensive loss until realized.

As of September 30, 2014, the estimated fair value of the Company’s investment in RealD was $11,458, which is based on the closing price of RealD’s common stock on September 30, 2014, and falls under Level 1 of the U.S. GAAP fair value hierarchy as defined by ASC Topic 820-10-35. During the nine months ended September 30, 2014, the Company recorded an unrealized holding gain of approximately $1,015, before taxes, as a component of accumulated other comprehensive loss on the condensed consolidated balance sheet.

Below is a summary of changes in the Company’s investment in RealD for the nine months ended September 30, 2014:

 

     Investment in  
     RealD  

Balance as of January 1, 2014

   $ 10,443   

Unrealized holding gain

     1,015   
  

 

 

 

Balance as of September 30, 2014

   $ 11,458   
  

 

 

 

The changes in accumulated other comprehensive loss, net of taxes, related to the Company’s investment in RealD for the nine months ended September 30, 2014 and 2013 were as follows:

 

     2014      2013  

Beginning balances – January 1

   $ 457       $ 2,499   

Other comprehensive income (loss), net of taxes of $374 and $1,933

     641         (3,215
  

 

 

    

 

 

 

Ending balances – September 30

   $ 1,098       $ (716