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Fair Value Measurements
 12 Months Ended
Dec. 31, 2014
Fair Value Measurements

NOTE 6 – FAIR VALUE MEASUREMENTS

ASC 820-10-35 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Marketable Equity Securities

The Company’s marketable equity securities are measured at fair value on each reporting date.

The marketable equity securities are measured at fair value using quoted prices in active markets. Due to the fact that the inputs used to measure the marketable equity securities at fair value are observable, the Company has categorized the fair value measurements of the securities as Level 1.

 

The cost, unrealized holding gains or losses, and fair value of the Company’s investments at December 31, 2014 and 2013 are as follows:

 

(In thousands)    

Gross

 

  

Gross

 

      

Investments

 Amortized

 

Cost

   Unrealized

 

Losses

   Unrealized

 

Gains

   Fair

 

Value

  

2014

Available-for-sale

 $ 369    $ -    $ 1,609    $ 1,978   

Other cost investments

   16,269      -      -      16,269   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total

 $ 16,638    $ -    $ 1,609    $ 18,247   
 

 

 

    

 

 

    

 

 

    

 

 

  

2013

Available-for-sale

 $ 659    $ -    $ 1,283    $ 1,942   

Other cost investments

   7,783      -      -      7,783   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total

 $               8,442    $                       -    $             1,283    $             9,725   
 

 

 

    

 

 

    

 

 

    

 

 

  

During 2013, the Company sold shares of Sirius XM Radio, Inc. held by it for $135.5 million. In connection with the sale of shares of Sirius XM Radio, Inc., a realized gain of $130.9 million and income tax expense of $48.6 million were reclassified out of accumulated other comprehensive loss into “Gain on marketable securities” and “Income tax benefit,” respectively. The net difference of $82.3 million is reported as a reduction of “Other comprehensive income (loss).”

Other cost investments include various investments in companies for which there is no readily determinable market value. The Company recognized other-than-temporary impairments of $2.0 million on a cost investment for the year ended December 31, 2012, which was a non-cash impairment charge recorded in “Loss on marketable securities.”