Quarterly report pursuant to Section 13 or 15(d)

IMPAIRMENT OF LONG-LIVED ASSETS

v3.5.0.2
IMPAIRMENT OF LONG-LIVED ASSETS
9 Months Ended
Sep. 30, 2016
Impairment Of Long Lived Assets Disclosure [Abstract]  
IMPAIRMENT OF LONG-LIVED ASSETS
NOTE 3. IMPAIRMENT OF LONG-LIVED ASSETS
 
We account for property and equipment in accordance with FASB ASC Topic 360-10, “Property, Plant and Equipment.” We periodically review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. Our review requires us to estimate the fair value of assets when events or circumstances indicate that they may be impaired. The fair value measurements for our long-lived assets use significant observable inputs that reflect our own assumptions about the estimates that market participants would use in measuring fair value including assumptions about risk. If actual future results are less favorable than the assumptions and estimates we used, we are subject to future impairment charges, the amount of which may be material.
 
Based on changes in management’s planned usage, we classified land in Covina, California as held for sale as of June 2012. At that time we evaluated the land for impairment in accordance with guidance for impairment of long-lived assets held for sale. We determined that the carrying value of the land exceeded the estimated fair value less costs to sell and recorded an impairment charge of $5.6 million associated with the land based on our estimated sale price at that time. In December 2012, after several purchase offers for the land were terminated, we obtained a third-party valuation for the land. Based on the fair value determined by the third-party, we recorded an additional impairment charge of $1.2 million associated with the land. While we continue to market the land for sale and have no intention to use the land in our operations, we have not received successful offers. Based on the amount of time that the land has been held for sale, we obtained a third-party valuation for the land as of June 2016. Based on this fair value appraisal, we recorded an additional $0.7 million impairment charge associated with the land during the three months ended June 30, 2016.
 
The table below presents the fair value measurements used to value this asset.
 
 
 
 
 
 
Fair Value Measurements Using:
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
Description
 
As of September 30, 2016
 
Quoted prices in
active markets
(Level 1)
 
Significant Other
Observable
Inputs (Level 2)
 
Significant
Unobservable
Inputs (Level 3)
 
Total Loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Lived Asset Held for Sale
 
$
1,000
 
 
 
 
 
$
1,000
 
$
(700)