NOTE 14 – FAIR VALUE MEASUREMENTS

Fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the entity transacts business. The inputs used to develop these fair value measurements are established in a hierarchy, which ranks the quality and reliability of the information used to determine the fair values. The fair value classification is based on levels of inputs. Assets and liabilities that are carried at fair value are classified and disclosed in one of the following categories:


Level 1:	Quoted market prices in active markets for identical assets or liabilities.
Level 2:	Observable inputs that are corroborated by market data.
Level 3:	Unobservable inputs that are not corroborated by market data.

Recurring Fair Value Measurements. The following table summarizes the fair value hierarchy of the Company’s financial assets carried at fair value on a recurring basis:



			Fair Value Measurements at December 31, 2016 Using
	Total Carrying						Significant
	Value at		Quoted prices in		Significant other		unobservable
	December 31,		active market		observable inputs		inputs
(In thousands)	2016 (1)		(Level 1)		(Level 2)		(Level 3)
Other long-term assets:
Money market mutual funds	$	605	$	605	$	—	$	—
Equity securities, available-for-sale:
Mutual fund large U.S. equity		1,995		1,995		—		—
Mutual fund small/mid U.S. equity		2,683		2,683		—		—
Mutual fund international		675		675		—		—
Mutual fund balanced		520		520		—		—
Mutual fund fixed income		1,343		1,343		—		—
Total assets at fair value	$	7,821	$	7,821	$	—	$	—


			Fair Value Measurements at December 31, 2015
			Using
	Total Carrying						Significant
	Value at		Quoted prices in		Significant other		unobservable
	December 31,		active market		observable inputs		inputs
(In thousands)	2015(1)		(Level 1)		(Level 2)		(Level 3)
Other long-term assets:
Money market mutual funds	$	132	$	132	$	—	$	—
Equity securities, available-for-sale:
RealD Inc. common stock		12,900		12,900		—		—
Mutual fund large U.S. equity		2,057		2,057		—		—
Mutual fund small/mid U.S. equity		2,222		2,222		—		—
Mutual fund international		833		833		—		—
Mutual fund balanced		747		747		—		—
Mutual fund fixed income		750		750		—		—
Total assets at fair value	$	19,641	$	19,641	$	—	$	—

(1)Except for the investment in RealD Inc. common stock, the investments relate to a non-qualified deferred compensation arrangement on behalf of certain management. The Company has an equivalent liability for this related-party transaction recorded in other long-term liabilities for the deferred compensation obligation.

Valuation Techniques. The Company’s money market mutual funds are invested in funds that seek to preserve principal, are highly liquid, and therefore are recorded on the balance sheet at the principal amounts deposited, which equals fair value. The equity securities, available-for-sale, primarily consist of common stock and mutual funds invested in equity, fixed income, and international funds and are measured at fair value using quoted market prices. See Note 16 - Accumulated Other Comprehensive Income for the unrealized gain on equity securities recorded in accumulated other comprehensive income.

Nonrecurring Fair Value Measurements. The following table summarizes the fair value hierarchy of the Company’s assets that were measured at fair value on a nonrecurring basis:


			Fair Value Measurements at December 31, 2016
			Using
	Total Carrying				Significant other		Significant
	Value at		Quoted prices in		observable		unobservable
	December 31,		active market		inputs		inputs		Total
(In thousands)	2016		(Level 1)		(Level 2)		(Level 3)		Losses
Property, net:
Property owned, net	$	1,541	$	—	$	—	$	1,541	$	5,544


			Fair Value Measurements at December 31, 2015
			Using
	Total Carrying				Significant other		Significant
	Value at		Quoted prices in		observable		unobservable
	December 31,		active market		inputs		inputs		Total
(In thousands)	2015		(Level 1)		(Level 2)		(Level 3)		Losses
Property, net:
Property owned, net	$	2,480	$	—	$	—	$	2,480	$	863
Intangibles, net:
Favorable lease		—	$	—	$	—	$	—	$	839

Long-lived assets held and used and a favorable lease were considered impaired and were written down to their fair value at December 31, 2016 and December 31, 2015 of $1,541,000 and $2,480,000, respectively.

Other Fair Value Measurement Disclosures. The Company is required to disclose the fair value of financial instruments that are not recognized at fair value in the statement of financial position for which it is practicable to estimate that value:



			Fair Value Measurements at December 31, 2016 Using
					Significant other		Significant
	Total Carrying		Quoted prices in		observable		unobservable
	Value at		active market		inputs		inputs
(In thousands)	December 31, 2016		(Level 1)		(Level 2)		(Level 3)
Current maturities of corporate borrowings	$	15,195	$	—	$	14,181	$	1,389
Corporate borrowings		3,745,755		—		3,892,590		2,777


			Fair Value Measurements at December 31, 2015
			Using
	Total Carrying				Significant other		Significant
	Value at		Quoted prices in		observable		unobservable
	December 31,		active market		inputs		inputs
(In thousands)	2015		(Level 1)		(Level 2)		(Level 3)
Current maturities of corporate borrowings	$	10,195	$	—	$	8,811	$	1,389
Corporate borrowings		1,902,598		—		1,898,432		4,166

Valuation Technique. Quoted market prices and observable market based inputs were used to estimate fair value for level 2 inputs. The level 3 fair value measurement represents the transaction price of the corporate borrowings under market conditions.