Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v2.4.0.6
Fair Value Measurements
 12 Months Ended
Dec. 31, 2011
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS

15.    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 December 31, 2011:

 

                                 
    Carrying
Value 		    Fair Value  

Description

     Level 1     Level 2     Level 3  

Interest rate swap liabilities — current (see Note 14)

   $ (9,979 )    $ —       $ —       $ (9,979 ) 

Interest rate swap liabilities — long term (see Note 14)

   $ (6,597 )    $ —       $ —       $ (6,597 ) 

Investment in RealD (see Note 8)

   $ 9,709     $ 9,709     $ —       $ —    

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, 2010:

 

                                 
    Carrying
Value 		    Fair Value  

Description

     Level 1     Level 2     Level 3  

Interest rate swap liabilities — current (see Note 14)

   $ (2,928 )    $ —       $ —       $ (2,928 ) 

Interest rate swap liabilities — long term (see Note 14)

   $ (13,042 )    $ —       $ —       $ (13,042 ) 

Interest rate swap assets — long term (see Note 14)

   $ 8,955     $ —       $ —       $ 8,955  

Investment in RealD (see Note 8)

   $ 27,993     $ —       $ 27,993     $ —    

Below is a reconciliation of the beginning and ending balance for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

                                 
    Liabilities     Assets  
    2011     2010     2011     2010  

Beginning balances — January 1

   $ 15,970     $ 18,524     $ 8,955     $ —    

Total gain (loss) included in accumulated other comprehensive income (loss)

     1,736       (2,554 )      (8,955 )      8,955  

Total gain included in earnings

     (1,130 )      —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Ending balances — December 31

   $ 16,576     $ 15,970     $ —       $ 8,955  
   

 

 

    

 

 

    

 

 

    

 

 

  

There were no changes in valuation techniques during the period. The fair value measurement for the Company’s investment in RealD transferred from Level 2 to Level 1 during the year ended December 31, 2011. Previous fair value estimates for the investment were based on RealD’s quoted stock price, discounted to reflect the impact of a lock-up period to which the Company was subject. The lock-up period expired during January 2011; therefore, the fair value estimates for the investment subsequent to January 2011 were based on RealD’s stock price with no adjustments. See Note 8 for more information on the Company’s investment in RealD. There were no transfers in or out of Level 3 during the year ended December 31, 2011.