Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v2.4.0.8
Fair Value Measurements
12 Months Ended
Dec. 31, 2013
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 December 31, 2013:

 

     Carrying
Value
    Fair Value  

Description

     Level 1      Level 2      Level 3  

Interest rate swap liabilities — current (see Note 13)

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

Interest rate swap liabilities — long term (see Note 13)

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

Investment in RealD (see Note 8)

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

 

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, 2012:

 

     Carrying
Value
    Fair Value  

Description

     Level 1      Level 2      Level 3  

Interest rate swap liabilities — current (see Note 13)

   $ (5,503   $ —         $ —         $ (5,503

Interest rate swap liabilities — long term (see Note 13)

   $ (8,689   $ —         $ —         $ (8,689

Investment in RealD (see Note 8)

   $ 13,707      $ 13,707       $ —         $ —     

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):

 

     Liabilities  
     2013     2012  

Beginning balances — January 1

   $ 14,192      $ 16,576   

Total loss included in accumulated other comprehensive loss

     803        11,403   

Total gain included in earnings

     —          (808

Settlements

     (5,819     (12,979
  

 

 

   

 

 

 

Ending balances — December 31

   $ 9,176      $ 14,192   
  

 

 

   

 

 

 

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 9 and Note 10). Additionally, the Company uses the market approach to estimate the fair value of its long-term debt (see Note 12). There were no changes in valuation techniques during the period. There were no transfers in or out of Level 1, Level 2 or Level 3 during the years ended December 31, 2012 and 2013.