Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v2.4.0.8
Fair Value Measurements
9 Months Ended
Sep. 30, 2014
Fair Value Measurements

14. Fair Value Measurements

The Company determines fair value measurements in accordance with FASB ASC Topic 820, which establishes a fair value hierarchy under which an asset or liability is categorized based on the lowest level of input significant to its fair value measurement. The levels of input defined by FASB ASC Topic 820 are as follows:

Level 1 – quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date;

Level 2 – other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3 – unobservable and should be used to measure fair value to the extent that observable inputs are not available.

Below is a summary of assets and liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of September 30, 2014:

 

     Carrying     Fair Value  

Description

   Value     Level 1      Level 2      Level 3  

Interest rate swap liabilities – current (see Note 11)

   $ (5,318   $ —         $ —         $ (5,318

Interest rate swap liabilities – long term (see Note 11)

   $ (520   $ —         $ —         $ (520

Investment in RealD (see Note 9)

   $ 11,458      $ 11,458       $ —         $ —     

Below is a summary of assets and liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of December 31, 2013:

 

     Carrying     Fair Value  

Description

   Value     Level 1      Level 2      Level 3  

Interest rate swap liabilities – current (see Note 11)

   $ (5,367   $ —         $ —         $ (5,367

Interest rate swap liabilities – long term (see Note 11)

   $ (3,809   $ —         $ —         $ (3,809

Investment in RealD (see Note 9)

   $ 10,443      $ 10,443       $ —         $ —     

Below is a reconciliation of the beginning and ending balance for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2014 and 2013:

 

     2014     2013  

Three Months Ended September 30,

    

Beginning balances —July 1

   $ 7,259      $ 10,435   

Total loss included in accumulated other comprehensive loss

     112        1,282   

Settlements

     (1,533     (1,467
  

 

 

   

 

 

 

Ending balances – September 30

   $ 5,838      $ 10,250   
  

 

 

   

 

 

 

 

     2014     2013  

Nine Months Ended September 30,

    

Beginning balances —January 1

   $ 9,176      $ 14,192   

Total loss included in accumulated other comprehensive loss

     1,180        405   

Settlements

     (4,518     (4,347
  

 

 

   

 

 

 

Ending balances – September 30

   $ 5,838      $ 10,250   
  

 

 

   

 

 

 

The Company also uses the income approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its long-lived assets (see Note 12 and Note 13). Additionally, the Company uses the market approach to estimate the fair value of its long-term debt for disclosure purposes (see Note 4). There were no changes in valuation techniques during the period.

 

The Company conducts a review of fair value hierarchy classifications when estimating fair values on a quarterly basis. There were no transfers in or out of Level 1, Level 2 or Level 3 during the nine months ended September 30, 2014.