Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v2.4.0.6
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2012
Fair Value Measurements [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, 2012 and 2011 are as follows:

 

                                                                 
    Fair Value at December 31,  
    Total     Quoted Prices
in Active
Markets for
Identical
Assets (Level 1)		     Significant Other
Observable
Inputs (Level 2)		     Significant
Unobservable
Inputs (Level 3)		  
    2012     2011     2012     2011     2012     2011     2012     2011  
    (In millions)  

Assets:

                                                                

Cash surrender value of life insurance policies(4)

   $ 21.4     $ 17.0     $ —     $ —     $ 21.4     $ 17.0     $ —     $ —  

Liabilities:

                                                                

Cash flow swaps designated as hedges(1)

   $ 31.4     $ 32.5     $ —     $ —     $ 31.4     $ 32.5     $ —     $ —  

Cash flow swaps not designated as hedges(2)

     2.9       5.1       —       —       2.9       5.1       —       —  

Deferred compensation plan(3)

     13.8       12.1       —       —       13.8       12.1       —       —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

   $ 48.1     $ 49.7     $ —     $ —     $ 48.1     $ 49.7     $ —     $ —  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) As of December 31, 2012, approximately $11.4 million and $20.0 million were included in other accrued liabilities and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets. As of December 31, 2011, $10.4 million and $22.1 million were included in other accrued liabilities and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets.

 

(2) As of December 31, 2012, approximately $0.7 million and $2.2 million were included in other accrued liabilities and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets. As of December 31, 2011, $2.8 million and $2.3 million were included in other accrued liabilities and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets.

 

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

 

(4) Included in other assets 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, 2012, 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.”

 

                         
    Balance as of
December 31, 2012		     Significant
Unobservable
Inputs (Level 3) as of
December 31, 2012		     Total
Gains/(Losses)
for the Year Ended
December 31, 2012		  
    (In millions)  

Long-lived assets held and used(1)

   $ 595.1     $ 595.1     $ (0.9 ) 

Goodwill(2)

     454.2       454.2       —  

Franchise assets(2)

     60.6       60.6       —  

 

(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, 2012     December 31, 2011  
     Fair Value     Carrying Value     Fair Value     Carrying Value  
    (In thousands)  

9.0% Notes(1)

   $ 231,525     $ 208,923     $ 221,025     $ 208,769  

7.0% Notes(1)

   $ 222,000     $ 198,282     $ —     $ —  

5.0% Convertible Notes(1)

   $ —     $ —     $ 205,448     $ 137,333  

Mortgage Notes(2)

   $ 148,244     $ 137,791     $ 119,310     $ 116,584  

Assumed Notes(2)

   $ 10,592     $ 11,289     $ 13,260     $ 14,438  

Other(2)

   $ 4,971     $ 5,341     $ 5,150     $ 5,555  

 

(1) As determined by market quotations as of December 31, 2012 and December 31, 2011, respectively (Level 1).

 

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