Liberty Broadband Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements and Derivative Instrument (Tables)

Fair Value Measurements and Derivative Instrument (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 are as follows (amounts in thousands):



September 30, 2017	Level 1 ⁽¹⁾		Level 2 ⁽²⁾	Level 3 ⁽³⁾	Total
Assets:
Deferred compensation plan assets (mutual funds)	$	1,294	—	—	1,294
Liabilities:
Derivative stock appreciation rights	$	—	—	83,670	83,670

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

⁽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 September 30, 2017 and December 31, 2016 are as follows (amounts in thousands):



	September 30, 2017			December 31, 2016
	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Current and long-term debt	$	1,336,489	1,421,873	1,336,772	1,393,865

Fair Value Inputs, Liabilities, Quantitative Information

The following table shows our significant assumptions and inputs used in the lattice-based valuation model to value the stock appreciation right liability at September 30, 2017:



	September 30, 2017
Contractual term (in years)	1.3 to 5.3
Volatility	20% to 40%
Risk-free interest rate	1.0% to 2.0%
Stock price	$	40.79

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes the changes in fair value of our financial instrument measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2017 and 2016 (amounts in thousands):



Fair Value Measurement Using Level 3 Inputs
	Derivative Stock Appreciation Rights
Balance at January 1, 2016	$	32,820
Fair value adjustment at end of period, included in Other Income (Expense)	(15,840		)
Balance at September 30, 2016	$	16,980

Balance at January 1, 2017	$	29,700
Fair value adjustment at end of period, included in Other Income (Expense)	53,970
Balance at September 30, 2017	$	83,670