Comfort Inn 2011 Annual Report Download - page 86
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Table of Contents
The Company estimates the fair value of its financial instruments utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in
measuring fair value. There have been no significant transfers into or out of Level 1 or Level 2 inputs during the year ended December 31, 2011. The following
summarizes the three levels of inputs, as well as the assets that the Company values using those levels of inputs.
: Quoted prices in active markets for identical assets and liabilities. The Company’s Level 1 assets consist of marketable securities (primarily
mutual funds) held in the Company’s EDCP and Non-Qualified Plan deferred compensation plans.
: Observable inputs, other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for similar assets and
liabilities; quoted prices in markets that are not active; or other inputs that are observable. The Company’s Level 2 assets consist of money market funds held
in the Company’s EDCP and Non-Qualified Plan deferred compensation plans and those recorded in cash and cash equivalents.
: Unobservable inputs, supported by little or no market data available, where the reporting entity is required to develop its own assumptions to
determine the fair value of the instrument. The Company does not currently have any assets whose fair value was determined using Level 3 inputs.
Money market funds, included in cash and cash equivalents $20,001
$ —
$20,001
$ —
Mutual funds(1) 21,534
21,534
—
—
Money market funds(1) 2,238
—
2,238
—
$43,773
$ 21,534
$22,239
$ —
Money market funds, included in cash and cash equivalents $10,001
$ —
$10,001
$ —
Mutual funds(1) 20,917
20,917
—
—
Money market funds(1) 2,448
—
2,448
—
$ 33,366
$20,917
$ 12,449
$ —
____________________________
(1) Included in Investments, employee benefit plans, fair value on consolidated balance sheets.
The Company believes that the fair values of its current assets and current liabilities approximate their reported carrying amounts due to the short-term
nature of these items. In addition, the interest rates of the Company’s Revolver adjust frequently based on current market rates; accordingly its carrying
amount approximates fair value.
The Company estimates the fair value of its long-term debt, excluding leases, using quoted market prices. At December 31, 2011, the long-term debt,
excluding leases, had an approximate fair value of $267.7 million.
The Company sponsors a 401(k) retirement plan for all eligible employees. For the years ended December 31, 2011, 2010 and 2009, the Company
recorded compensation expense of $3.6 million, $3.4 million and $3.7 million, respectively, representing matching contributions for plan participants. In
accordance with the safe harbor matching provisions of the plan, the Company matches plan participant contributions in cash as bi-weekly deductions are
made.
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