| Assets or Liabilities Recorded at Fair Value |
Assets and liabilities recorded at fair value in the accompanying Unaudited Condensed Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013 are as follows:
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Fair Value Based on
Significant Other Observable
Inputs (Level 2)
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September 30, 2014
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December 31, 2013
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(In thousands)
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Assets:
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Cash surrender value of life insurance policies (1)
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$
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27,412
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$
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25,301
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Cash flow swaps designated as hedges (1)
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2,022
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3,707
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Total assets
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$
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29,434
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$
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29,008
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Liabilities:
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Cash flow swaps designated as hedges (2)
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$
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11,088
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$
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17,995
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Cash flow swaps not designated as hedges (3)
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1,578
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2,046
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Deferred compensation plan (4)
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15,917
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14,842
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Total liabilities
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$
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28,583
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$
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34,883
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(1) Included in other assets in the accompanying Unaudited Condensed Consolidated Balance Sheets.
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(2) As of September 30, 2014, approximately $8.6 million and $2.5 million were included in other accrued liabilities
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and other long-term liabilities, respectively, in the accompanying Unaudited Condensed Consolidated Balance Sheets.
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As of December 31, 2013, approximately $10.6 million and $7.4 million were included in other accrued liabilities
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and other long-term liabilities, respectively, in the accompanying Unaudited Condensed Consolidated Balance Sheets.
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(3) As of September 30, 2014, approximately $0.7 million and $0.9 million were included in other accrued liabilities
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and other long-term liabilities, respectively, in the accompanying Unaudited Condensed Consolidated Balance Sheets.
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As of December 31, 2013, approximately $1.0 million was included in both other accrued liabilities
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and other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets.
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(4) Included in other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets.
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| Fair Value and Carrying Value of Fixed Rate Long-Term Debt |
At September 30, 2014 and December 31, 2013, the fair value and carrying value of Sonic’s fixed rate long-term debt were as follows:
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September 30, 2014
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December 31, 2013
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Fair Value
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Carrying Value
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Fair Value
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Carrying Value
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(In thousands)
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7.0% Notes (1)
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$
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215,500
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$
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198,519
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$
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218,000
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$
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198,414
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5.0% Notes (1)
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$
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290,250
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$
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300,000
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$
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285,000
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$
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300,000
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Mortgage Notes (2)
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$
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154,668
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$
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149,364
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$
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165,381
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$
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157,571
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Assumed Notes (2)
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$
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5,214
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$
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5,372
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$
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7,636
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$
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7,993
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Other (2)
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$
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4,613
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$
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4,919
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$
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4,774
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$
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5,080
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(1) As determined by market quotations as of September 30, 2014 and December 31, 2013, respectively (Level 1).
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(2) As determined by discounted cash flows (Level 3).
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