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53
Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
The following table summarizes non-financial assets measured at fair value on a nonrecurring basis:
December 31, 2013 December 31, 2012
(In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets Held for Sale $ — $ 15,840 $ — $ — $ 11,104 $ —
Assets held for sale includes real estate properties that consist mostly of parcels of land and commercial buildings, as well as
the net assets of the RIMCO operating segment (principally consisting of lease merchandise, office furniture and leasehold
improvements) in connection with the Company's decision to sell the 27 Company-operated RIMCO stores. The highest and
best use of these assets is as real estate land parcels for development or real estate properties for use or lease; however, the
Company has chosen not to develop or use these properties. In accordance with ASC Topic 360, Property, Plant and
Equipment, assets held for sale are written down to fair value, and the adjustment is recorded in other operating expense
(income), net. The Company estimated the fair values of real estate properties using the market values for similar properties.
The impairment loss recorded for the RIMCO disposal group was based on our expectations of a sale price as compared to our
estimation of the net assets to be sold at closing.
Certain Financial Assets and Liabilities Not Measured at Fair Value
The following table summarizes the fair value of assets (liabilities) that are not measured at fair value in the consolidated
balance sheets, but for which the fair value is disclosed:
December 31, 2013 December 31, 2012
(In Thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Corporate Bonds 1$ — $ 91,785 $ — $ — $ 67,470 $ —
Perfect Home Notes 2— — 20,661 — — 18,449
Fixed-Rate Long Term Debt 3—(130,687) — — (127,261) —
1 The fair value of corporate bonds is determined through the use of model-based valuation techniques for which all significant
assumptions are observable in the market.
2 The Perfect Home notes were initially valued at cost. The Company periodically reviews the valuation utilizing company-
specific transactions or changes in Perfect Home's financial performance to determine if fair value adjustments are necessary.
3 The fair value of fixed-rate long term debt is estimated using the present value of underlying cash flows discounted at a
current market yield for similar instruments. The carrying value of fixed-rate long term debt was $125.0 million at
December 31, 2013 and December 31, 2012.
Held-to-Maturity Securities
The Company classifies its investments in debt securities as held-to-maturity securities based on its intent and ability to hold
these securities to maturity. Accordingly, the debt securities, which mature at various dates during 2014 to 2015, are recorded at
amortized cost in the consolidated balance sheets. At December 31, 2013 and 2012, investments classified as held-to-maturity
securities consisted of the following:
Gross Unrealized
(In Thousands) Amortized Cost Gains Losses Fair Value
2013
Corporate Bonds $ 91,730 $ 98 $ (43) $ 91,785
Perfect Home Notes 20,661 — — 20,661
Total $ 112,391 $ 98 $ (43) $ 112,446
2012
Corporate Bonds $ 67,412 $ 99 $ (41) $ 67,470
Perfect Home Notes 18,449 — — 18,449
Total $ 85,861 $ 99 $ (41) $ 85,919