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Fair Value Measurements
 3 Months Ended
Mar. 31, 2015
Fair Value Measurements

12. 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 March 31, 2015:

 

     Carrying      Fair Value  

Description

    Value      Level 1      Level 2      Level 3  

Interest rate swap liabilities – current (see Note 9)

    $ (3,271 )     $ —         $ —         $ (3,271 ) 

Interest rate swap liabilities – long-term (see Note 9)

    $ (91 )     $ —         $ —         $ (91 ) 

Investment in RealD (see Note 7)

    $ 15,639       $ 15,639       $ —         $ —     

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, 2014:

 

     Carrying      Fair Value  

Description

    Value      Level 1      Level 2      Level 3  

Interest rate swap liabilities – current (see Note 9)

    $ (4,255 )     $ —         $ —         $ (4,255 ) 

Interest rate swap liabilities – long term (see Note 9)

    $ (317 )     $ —         $ —         $ (317 ) 

Investment in RealD (see Note 7)

    $ 14,429       $ 14,429       $ —         $ —     

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  
     2015      2014  

Beginning balances – January 1

    $ 4,572       $ 9,176   

Total loss included in accumulated other comprehensive loss

      236         610   

Settlements

      (1,446 )       (1,476 ) 
  

 

 

     

 

 

  

Ending balances – March 31

 $ 3,362    $ 8,310   
  

 

 

     

 

 

  

The Company also uses the market approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its long-lived assets (see Note 10 and Note 11). Additionally, the Company uses the market approach to estimate the fair value of its long-term debt (see Note 4). There were no changes in valuation techniques and there were no transfers in or out of Level 1, Level 2 or Level 3 during the three months ended March 31, 2015.