Liberty Broadband Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements and Derivative Instruments (Tables)

Fair Value Measurements and Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015 are as follows (amounts in thousands):



December 31, 2016	Level 1 ⁽¹⁾		Level 2 ⁽²⁾	Level 3 ⁽³⁾	Total
Assets:
Deferred compensation plan assets (mutual funds)	$	1,477	—	—	1,477
Liabilities:
Derivative stock appreciation rights	$	—	—	29,700	29,700

December 31, 2015	Level 1 ⁽¹⁾		Level 2 ⁽²⁾	Level 3 ⁽³⁾	Total
Assets:
Deferred compensation plan assets (mutual funds)	$	1,728	—	—	1,728
Liabilities:
Derivative stock appreciation rights	$	—	—	32,820	32,820

⁽¹⁾ Quoted prices in active markets for identical assets or liabilities
⁽²⁾ Observable inputs other than quoted prices in active markets for identical assets and liabilities
⁽³⁾ Inputs that are generally unobservable and not corroborated by market data

Fair Value, by Balance Sheet Grouping

The carrying amounts and approximate fair values of our current and long-term debt, excluding capital leases at December 31, 2016 and 2015 are as follows (amounts in thousands):



	December 31, 2016			December 31, 2015
	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Current and long-term debt	$	1,336,772	1,393,865	1,332,738	1,390,743

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

The following table shows our significant assumptions and inputs used in the lattice-based valuation model to value the stock appreciation right liability at December 31, 2016 and 2015:



	2016		2015
Contractual term (in years)	2.1 - 6.1		4 - 8
Volatility	37.5	%	40.0	%
Risk-free interest rate	2.1	%	2.1	%

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table summarizes the changes in fair value of all financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31, 2016:



Fair Value Measurement Using Level 3 Inputs
	Derivative Stock Appreciation Rights
Balance at January 1, 2015	$	—
Issuance	21,660
Fair value adjustment at end of period, included in Other Income (Expense)	11,160
Balance at December 31, 2015	$	32,820
Fair value adjustment at end of period, included in Other Income (Expense)	(3,120		)
Balance at December 31, 2016	$	29,700