Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.19.3
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Assets and Liabilities Recorded at Fair Value
Assets and liabilities recorded at fair value in the accompanying unaudited condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 are as follows:
Fair Value Based on Significant Other Observable Inputs (Level 2)
September 30, 2019 December 31, 2018
(In thousands)
Assets:
Cash surrender value of life insurance policies (1) $ 32,568    $ 31,395   
Interest rate caps designated as hedges (2) 246    4,839   
Total assets $ 32,814    $ 36,234   
Liabilities:
Deferred compensation plan (3) $ 18,635    $ 19,848   
Total liabilities $ 18,635    $ 19,848   
(1) Included in other assets in the accompanying unaudited condensed consolidated balance sheets.
(2) As of September 30, 2019, approximately $0.1 million and $0.1 million were included in other current assets and other assets, respectively, in the accompanying unaudited condensed consolidated balance sheet as of such date. As of December 31, 2018, approximately $1.8 million and $3.0 million were included in other current assets and other assets, respectively, in the accompanying unaudited condensed consolidated balance sheet as of such date.
(3) Included in other long-term liabilities in the accompanying unaudited condensed consolidated balance sheets.
Fair Value and Carrying Value of Significant Fixed Rate Long-Term Debt
At September 30, 2019 and December 31, 2018, the fair value and carrying value of Sonic’s significant fixed rate long-term debt were as follows:
September 30, 2019 December 31, 2018
Fair Value Carrying Value Fair Value Carrying Value
(In thousands)
5.0% Notes (1) $ 292,166    $ 289,273    $ 262,515    $ 289,273   
6.125% Notes (1) $ 255,000    $ 250,000    $ 216,250    $ 250,000   
Mortgage Notes (2) $ 207,022    $ 205,521    $ 218,402    $ 215,196   
Other (2) (3) $ —    $ —    $ 20,437    $ 20,588   
(1) As determined by market quotations as of September 30, 2019 and December 31, 2018, respectively (Level 1).
(2) As determined by discounted cash flows (Level 3) based on estimated current market interest rates for comparable instruments.
(3) As discussed in Note 1, “Summary of Significant Accounting Policies,” due to the adoption of ASC 842, “Leases,” effective January 1, 2019, previously existing capital lease liabilities have been reclassified from current maturities of long-term debt and long-term debt to current lease liabilities and long-term lease liabilities in the accompanying unaudited condensed consolidated balance sheet as of September 30, 2019.