| Fair Value Measurements |
Fair Value Measurements Fair Value Accounting guidance and standards about fair value define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy Accounting guidance and standards about fair value establish a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting guidance and standards establish three levels of inputs that may be used to measure fair value:
| | • | Level 1 — Quoted prices in active markets for identical assets or liabilities. |
| | • | Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 liabilities that are not required to be measured at fair value on a recurring basis include the Company’s convertible senior subordinated notes, individual production loans, Pennsylvania Regional Center Loan, Senior Notes, and Term Loan, which are priced using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, three- and seven-year swap rates, and credit ratings. |
| | • | Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company measures the fair value of its investment in TV Guide Network's Mandatorily Redeemable Preferred Stock Units using primarily a discount cash flow analysis based on the expected cash flows of the investment. The analysis reflects the contractual terms of the investment, including the period to maturity, and uses a discount rate commensurate with the risk associated with the investment. |
The following table sets forth the carrying values and fair values of the Company’s investment in TV Guide Network's mandatorily redeemable preferred stock units and outstanding debt at September 30, 2012 and March 31, 2012: | | | | | | | | | | | | | | | | | | September 30, 2012 | | March 31, 2012 | | (Amounts in thousands) | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | | | | (Level 3) | | | | (Level 3) | Assets: | | | | | | | | Investment in TV Guide Network's Mandatorily Redeemable Preferred Stock Units | $ | 98,247 |
| | $ | 150,466 |
| | $ | 106,406 |
| | $ | 145,029 |
| | | | | | | | | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | | | | (Level 2) | | | | (Level 2) | Liabilities: | | | | | | | | October 2004 2.9375% convertible senior subordinated notes | $ | 348 |
| | $ | 256 |
| | $ | 348 |
| | $ | 237 |
| February 2005 3.625% convertible senior subordinated notes | — |
| | — |
| | 23,464 |
| | 19,295 |
| April 2009 3.625% convertible senior subordinated notes | 47,308 |
| | 53,567 |
| | 45,462 |
| | 59,083 |
| January 2012 4.00% convertible senior subordinated notes | 36,048 |
| | 36,423 |
| | 35,224 |
| | 35,619 |
| Individual production loans | 278,978 |
| | 278,269 |
| | 352,960 |
| | 351,911 |
| Pennsylvania Regional Center production loans | 65,500 |
| | 64,567 |
| | 65,500 |
| | 63,679 |
| Senior secured second-priority notes | 431,881 |
| | 482,195 |
| | 431,510 |
| | 479,055 |
| Term Loan | 294,929 |
| | 294,900 |
| | 477,514 |
| | 480,423 |
| | $ | 1,154,992 |
| | $ | 1,210,177 |
| | $ | 1,431,982 |
| | $ | 1,489,302 |
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