XML 80 R29.htm IDEA: XBRL DOCUMENT v2.4.1.9
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Tables)
12 Months Ended
Dec. 31, 2014
Accounting Policies [Abstract]  
Schedule Of Launch Assets [Table Text Block]
The gross value and accumulated amortization of the launch assets is as follows:
   
 
 
As of December 31,
 
 
 
2014
 
2013
 
 
 
(In thousands)
 
 
 
 
 
 
 
Launch assets
 
$
39,597
 
$
39,597
 
Less: Accumulated amortization
 
 
(36,957)
 
 
(27,034)
 
Launch assets, net
 
$
2,640
 
$
12,563
 
Schedule Of Launch Assets Future Amortization Expense [Table Text Block]
Future estimated launch support amortization expense or revenue reduction related to launch assets for years 2015 through 2016 is as follows:
 
 
 
(In thousands)
 
 
 
 
 
2015
 
$
2,610
 
2016
 
$
30
 
Fair Value, by Balance Sheet Grouping [Table Text Block]
As of December 31, 2014 and 2013, the fair values of our financial assets and liabilities measured at fair value on a recurring basis are categorized as follows:
  
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
(In thousands)
 
As of December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets subject to fair value measurement:
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities (a)
 
$
805
 
$
805
 
$
 
$
 
Government sponsored enterprise mortgage-backed securities (a)
 
 
102
 
 
 
 
102
 
 
 
Mutual funds (a)
 
 
2,004
 
 
2,004
 
 
 
 
 
Total
 
$
2,911
 
$
2,809
 
$
102
 
$
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities subject to fair value measurement:
 
 
 
 
 
 
 
 
 
 
 
 
 
Incentive award plan (b)
 
$
1,044
 
$
 
$
 
$
1,044
 
Employment agreement award (c)
 
 
17,993
 
 
 
 
 
 
17,993
 
Total
 
$
19,037
 
$
 
$
 
$
19,037
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mezzanine equity subject to fair value measurement:
 
 
 
 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interests (d)
 
$
10,836
 
$
 
$
 
$
10,836
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets subject to fair value measurement:
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities (a)
 
$
147
 
$
147
 
$
 
$
 
Mutual funds (a)
 
 
2,315
 
 
2,315
 
 
 
 
 
Total
 
$
2,462
 
$
2,462
 
$
 
$
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities subject to fair value measurement:
 
 
 
 
 
 
 
 
 
 
 
 
 
Incentive award plan (b)
 
$
2,114
 
$
 
$
 
$
2,114
 
Employment agreement award (c)
 
 
13,688
 
 
 
 
 
 
13,688
 
Total
 
$
15,802
 
$
 
$
 
$
15,802
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mezzanine equity subject to fair value measurement:
 
 
 
 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interests (d)
 
$
11,999
 
$
 
$
 
$
11,999
 
 
(a) Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, fair values are estimated using pricing models, quoted prices of securities with similar characteristics or discounted cash flows.
 
(b) These balances are measured based on the estimated enterprise fair value of TV One. Significant inputs to the discounted cash flow analysis include forecasted operating results, discount rate and a terminal value. A third-party valuation firm assisted the Company in estimating TV One’s fair value.
 
(c) Pursuant to an employment agreement (the “Employment Agreement”) executed in April 2008, the Chief Executive Officer (“CEO”) is eligible to receive an award amount equal to 8% of any proceeds from distributions or other liquidity events in excess of the return of the Company’s aggregate investment in TV One. The Company reviews the factors underlying this award at the end of each quarter including the valuation of TV One. There are probability factors included in the calculation of the award related to the likelihood that the award will be realized. The Company’s obligation to pay the award will be triggered only after the Company’s recovery of the aggregate amount of its capital contribution in TV One and only upon actual receipt of distributions of cash or marketable securities or proceeds from a liquidity event with respect to the Company’s membership interest in TV One. The CEO was fully vested in the award upon execution of the Employment Agreement, and the award lapses if the CEO voluntarily leaves the Company or is terminated for cause. A third-party valuation firm assisted the Company in estimating TV One’s fair value. Significant inputs to the discounted cash flow analysis include forecasted operating results, discount rate and a terminal value. As noted in our current report on Form 8-K filed October 6, 2014, the Compensation Committee of the Board of Directors of the Company has approved terms for a new employment agreement with the CEO, including a renewal of the TV One Award upon similar terms as in the prior Employment Agreement. While a new Employment Agreement has not been executed as of the date of this report, the CEO is being compensated according to the new terms approved by the Compensation Committee.
 
(d) The redeemable noncontrolling interest in Reach Media is measured at fair value using a discounted cash flow methodology. A third-party valuation firm assisted the Company in estimating the fair value. Significant inputs to the discounted cash flow analysis include forecasted operating results, discount rate and a terminal value.
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]
There were no transfers in or out of Level 1, 2, or 3 during the year ended December 31, 2014. The following table presents the changes in Level 3 liabilities measured at fair value on a recurring basis for the years ended December 31, 2013 and 2014:
 
 
 
 
 
Employment
 
Redeemable
 
 
 
Incentive
 
Agreement
 
Noncontrolling
 
 
 
Award Plan
 
Award
 
Interests
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
Balance at December 31, 2012
 
$
5,345
 
$
11,374
 
$
12,853
 
Net income attributable to noncontrolling interests
 
 
 
 
 
 
665
 
Distribution
 
 
(3,219)
 
 
 
 
 
Change in fair value
 
 
(12)
 
 
2,314
 
 
(1,519)
 
Balance at December 31, 2013
 
$
2,114
 
$
13,688
 
$
11,999
 
Net income attributable to noncontrolling interests
 
 
 
 
 
 
639
 
Distribution
 
 
(1,370)
 
 
 
 
 
Change in fair value
 
 
300
 
 
4,305
 
 
(1,802)
 
Balance at December 31, 2014
 
$
1,044
 
$
17,993
 
$
10,836
 
 
 
 
 
 
 
 
 
 
 
 
The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets and liabilities still held at the reporting date
 
$
(300)
 
$
(4,305)
 
$
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows:
 
 
 
 
 
 
 
As of
 
 
As of
 
 
 
 
 
Significant
 
December 31, 2014
 
 
December 31, 2013
 
Level 3 liabilities
 
Valuation Technique
 
Unobservable Inputs
 
Significant Unobservable Input Value
 
 
 
 
 
 
 
 
 
 
Incentive award plan
 
Discounted Cash Flow
 
Discount Rate
 
 
10.4
%
 
 
10.8
%
Incentive award plan
 
Discounted Cash Flow
 
Long-term Growth Rate
 
 
3.0
%
 
 
3.0
%
Employment agreement award
 
Discounted Cash Flow
 
Discount Rate
 
 
10.4
%
 
 
10.8
%
Employment agreement award
 
Discounted Cash Flow
 
Long-term Growth Rate
 
 
3.0
%
 
 
3.0
%
Redeemable noncontrolling interest
 
Discounted Cash Flow
 
Discount Rate
 
 
12.0
%
 
 
12.5
%
Redeemable noncontrolling interest
 
Discounted Cash Flow
 
Long-term Growth Rate
 
 
1.5
%
 
 
1.5
%