Annual report pursuant to Section 13 and 15(d)

Assets and Liabilities Measured at Fair Value

v2.4.1.9
Assets and Liabilities Measured at Fair Value
 12 Months Ended
Dec. 31, 2014
Assets and Liabilities Measured at Fair Value  
Assets and Liabilities Measured at Fair Value

(4) Assets and Liabilities Measured at Fair Value

For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company does not have any recurring assets or liabilities measured at fair value that would be considered Level 3.

The Company’s assets and liabilities measured at fair value are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

December 31, 2013

 

 

 

 

 

 

Quoted prices

 

Significant

 

 

 

Quoted prices

 

Significant

 

 

 

 

 

 

in active

 

other

 

 

 

in active

 

other

 

 

 

 

 

 

markets for

 

observable

 

 

 

markets for

 

observable

 

 

 

 

 

 

identical assets

 

inputs

 

 

 

identical assets

 

inputs

 

Description

 

Total

 

(Level 1)

 

(Level 2)

 

Total

 

(Level 1)

 

(Level 2)

 

 

 

amounts in thousands

 

Cash and cash equivalents

 

$
36,002 

 
36,002 

 

 —

 

 —

 

 —

 

 —

 

Short-term marketable securities

 

$
9,001 

 
9,001 

 

 —

 

 —

 

 —

 

 —

 

Available-for-sale securities

    

$
360,762 

    
360,762 

    

 —

    
326,700 

    
326,700 

    

 —

 

Charter warrants

 

$

 —

 

 —

 

 —

 
97,847 

 

 —

 
97,847 

 

Time Warner Cable written call options

 

$
(75,356)

 

 —

 
(75,356)

 
(54,600)

 

 —

 
(54,600)

 

 

The fair value of Level 2 derivative assets were obtained from pricing sources for identical or comparable instruments, rather than direct observations of quoted prices in active markets. The fair value of Level 2 derivative liabilities were derived from a Black-Scholes model using observable market data as the significant inputs. The inputs used in the model during the period outstanding (exclusive of the applicable trading price of Time Warner Cable stock and the strike prices associated with the call options) were as follows:

 

 

 

 

 

 

 

 

 

    

Range

 

Volatility

 

 11.7

%

 —
29.1 

%

 

Interest rate

 

 0.23

%

 —
0.27 

%

 

Dividend yield

 
0 

%

 —
1.71 

%

 

 

Other Financial Instruments

Other financial instruments not measured at fair value on a recurring basis include trade receivables, trade payables, accrued and other current liabilities. The carrying amount approximates fair value due to the short maturity of these instruments as reported on our consolidated balance sheets.

Realized and Unrealized Gains (Losses) on Financial Instruments

Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following: 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

 

2014

 

2013

 

2012

 

 

 

(amounts in thousands)

 

Charter warrants

    

$
32,782 

    
38,234 

    

 —

 

Time Warner Cable investment and written call options

 

 
18,407 

 
59,626 

 
57,582 

 

 

 

$
51,189 

 
97,860 

 
57,582