Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v2.4.1.9
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Assets or Liabilities Recorded at Fair Value

Assets or liabilities recorded at fair value in the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Based on

Significant Other Observable

Inputs (Level 2)

 

 

 

 

 

December 31, 2014

 

 

December 31, 2013

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

Cash surrender value of life insurance policies (1)

 

$

27,552

 

 

$

25,301

 

 

 

Cash flow swaps designated as hedges (1)

 

 

618

 

 

 

3,707

 

 

 

Total assets

 

$

28,170

 

 

$

29,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Cash flow swaps designated as hedges (2)

 

$

10,251

 

 

$

17,995

 

 

 

Cash flow swaps not designated as hedges (3)

 

 

1,469

 

 

 

2,046

 

 

 

Deferred compensation plan (4)

 

 

15,863

 

 

 

14,842

 

 

 

Total liabilities

 

$

27,583

 

 

$

34,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)   Included in other assets in the accompanying Consolidated Balance Sheets.

 

 

 

(2)   As of December 31, 2014, approximately $7.5 million and $2.8 million were included in other accrued liabilities

 

 

 

and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets.

 

 

 

As of December 31, 2013, approximately $10.6 million and $7.4 million were included in other accrued liabilities

 

 

 

and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets.

 

 

 

(3)   As of December 31, 2014, approximately $0.7 million and $0.8 million were included in other accrued liabilities

 

 

 

and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets.

 

 

 

As of December 31, 2013, approximately $1.0 million was included in both other accrued liabilities

 

 

 

and other long-term liabilities in the accompanying Consolidated Balance Sheets.

 

 

 

(4)   Included in other long-term liabilities in the accompanying Consolidated Balance Sheets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets or Liabilities Measured at Fair Value on a Non-Recurring Basis

The carrying value of assets or liabilities measured at fair value on a non-recurring basis but not completely adjusted to fair value in the in the accompanying Consolidated Balance Sheets as of December 31, 2014, are included in the table below. Certain components of long-lived assets held and used have been adjusted to fair value through impairment charges as discussed in Note 4, “Property and Equipment.”  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

 

 

Unobservable

 

 

Total Gains /

 

 

 

 

 

 

 

 

 

Inputs

 

 

(Losses) for the

 

 

 

 

 

Balance as of

 

 

(Level 3) as of

 

 

Year Ended

 

 

 

 

 

December 31, 2014

 

 

December 31, 2014

 

 

December 31, 2014

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-lived assets held and used (1)

 

$

799,319

 

 

$

799,319

 

 

$

(4,394

)

 

 

Goodwill (2)

 

$

475,929

 

 

$

475,929

 

 

$

-

 

 

 

Franchise assets (2)

 

$

77,100

 

 

$

77,100

 

 

$

(2,200

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Notes 1 and 4 for discussion.

 

 

 

(2) See Notes 1 and 5 for discussion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value and Carrying Value of Fixed Rate Long-Term Debt

The fair value and carrying value of Sonic’s fixed rate long-term debt was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

December 31, 2013

 

 

 

 

 

Fair Value

 

 

Carrying Value

 

 

Fair Value

 

 

Carrying Value

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.0% Notes (1)

 

$

216,000

 

 

$

198,556

 

 

$

218,000

 

 

$

198,414

 

 

 

5.0% Notes (1)

 

$

294,000

 

 

$

300,000

 

 

$

285,000

 

 

$

300,000

 

 

 

Mortgage Notes (2)

 

$

152,240

 

 

$

147,554

 

 

$

165,381

 

 

$

157,571

 

 

 

Assumed Notes (2)

 

$

4,365

 

 

$

4,474

 

 

$

7,636

 

 

$

7,993

 

 

 

Other (2)

 

$

4,588

 

 

$

4,884

 

 

$

4,774

 

 

$

5,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)   As determined by market quotations as of December 31, 2014 and December 31, 2013, respectively (Level 1).

 

 

 

(2)   As determined by discounted cash flows (Level 3).