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SEC Filings

10-K
CINEMARK HOLDINGS, INC. filed this Form 10-K on 02/27/2015
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Table of Contents

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

13. FAIR VALUE MEASUREMENTS

The Company determines fair value measurements in accordance with FASB ASC Topic 820, which establishes a fair value hierarchy under which an asset or liability is categorized based on the lowest level of input significant to its fair value measurement. The levels of input defined by FASB ASC Topic 820 are as follows:

 

Level 1

      quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date;

Level 2

      other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3

      unobservable and should be used to measure fair value to the extent that observable inputs are not available.

Below is a summary of assets and liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of December 31, 2014:

 

     Carrying
Value
     Fair Value  

Description

      Level 1      Level
2
     Level 3  

Interest rate swap liabilities — current (see Note 12)

   $ (4,255    $ —         $ —         $ (4,255

Interest rate swap liabilities — long term (see Note 12)

   $ (317    $ —         $ —         $ (317

Investment in RealD (see Note 7)

   $ 14,429       $ 14,429       $ —         $ —     

Below is a summary of assets and liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of December 31, 2013:

 

     Carrying
Value
     Fair Value  

Description

      Level 1      Level
2
     Level 3  

Interest rate swap liabilities — current (see Note 12)

   $ (5,367    $ —         $ —         $ (5,367

Interest rate swap liabilities — long term (see Note 12)

   $ (3,809    $ —         $ —         $ (3,809

Investment in RealD (see Note 7)

   $ 10,443       $ 10,443       $ —         $ —     

Below is a reconciliation of the beginning and ending balance for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

     Liabilities  
     2013      2014  

Beginning balances — January 1

   $ 14,192       $ 9,176   

Total loss included in accumulated other comprehensive loss

     803         1,411   

Settlements

     (5,819      (6,015
  

 

 

    

 

 

 

Ending balances — December 31

   $ 9,176       $ 4,572   
  

 

 

    

 

 

 

The Company also uses the market approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its long-lived assets (see Note 8 and Note 9). Additionally, the Company uses the market approach to estimate the fair value of its long-term debt (see Note 11). There were no changes in valuation techniques during the period. There were no transfers in or out of Level 1, Level 2 or Level 3 during the years ended December 31, 2012, 2013 and 2014.

 

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