Fair Value Measurements (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Fair Value Disclosures [Abstract] |
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| Assets and Liabilities Recorded at Fair Value |
Assets and liabilities recorded at fair value in the accompanying consolidated balance sheets as of December 31, 2017 and 2016 are as follows:
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Fair Value Based on
Significant Other Observable
Inputs (Level 2)
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December 31, 2017
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December 31, 2016
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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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33,747
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$
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31,475
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Cash flow swaps and interest rate caps designated as hedges (2)
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5,968
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2,772
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Total assets
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$
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39,715
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$
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34,247
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Liabilities:
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Cash flow swaps designated as hedges (3)
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$
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1,286
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$
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6,135
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Cash flow swaps not designated as hedges (4)
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-
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346
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Deferred compensation plan (5)
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18,417
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14,824
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Total liabilities
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$
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19,703
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$
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21,305
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(1)
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Included in other assets in the accompanying consolidated balance sheets.
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(2)
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As of December 31, 2017, approximately $0.9 million and $5.1 million were included in other current assets and other assets, respectively, in the accompanying consolidated balance sheets. As of December 31, 2016, approximately $2.8 million was included in other assets in the accompanying consolidated balance sheets.
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(3)
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As of December 31, 2017, approximately $1.0 million and $0.3 million were included in other accrued liabilities and other long-term liabilities, respectively, in the accompanying consolidated balance sheets. As of December 31, 2016, approximately $3.7 million and $2.4 million were included in other accrued liabilities and other long-term liabilities, respectively, in the accompanying consolidated balance sheets.
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(4)
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Included in other accrued liabilities in the accompanying consolidated balance sheets.
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(5)
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Included in other long-term liabilities in the accompanying consolidated balance sheets.
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| Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis |
The carrying value of assets and liabilities measured at fair value on a non-recurring basis but not completely adjusted to fair value in the accompanying consolidated balance sheets as of December 31, 2017, 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” and Note 5, “Intangible Assets and Goodwill.”
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Significant
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Unobservable
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Total Gains /
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Inputs
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(Losses) for the
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Balance as of
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(Level 3) as of
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Year Ended
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December 31, 2017
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December 31, 2017
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December 31, 2017
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(In thousands)
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Long-lived assets held and used (1)
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$
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1,146,881
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$
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1,146,881
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$
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(4,894
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)
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Goodwill (2)
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$
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525,780
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$
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525,780
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$
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(899
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)
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Franchise assets (2)
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$
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69,900
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$
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69,900
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$
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(3,600
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)
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(1)
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See Note 1, “Description of Business and Summary of Significant Accounting Policies,” and Note 4, “Property and Equipment,” for discussion.
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(2)
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See Note 1, “Description of Business and Summary of Significant Accounting Policies,” and Note 5, “Intangible Assets and Goodwill,” for discussion.
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| 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 were as follows:
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December 31, 2017
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December 31, 2016
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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) (2)
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$
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-
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$
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-
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$
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211,000
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$
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198,871
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5.0% Notes (1)
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$
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279,148
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$
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289,273
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$
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284,934
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$
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289,273
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6.125% Notes (1)
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$
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248,750
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$
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250,000
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$
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-
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$
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-
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Mortgage Notes (3)
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$
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203,031
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$
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199,972
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$
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185,979
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$
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176,369
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Other (3)
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$
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3,760
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$
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3,947
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$
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4,057
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$
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4,280
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(1)
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As determined by market quotations as of December 31, 2017 and 2016, respectively (Level 1).
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(2)
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Sonic repurchased all of the 7.0% Notes outstanding on March 27, 2017.
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(3)
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As determined by discounted cash flows (Level 3).
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