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 Instruments (Tables)

Fair Value Measurements and Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Assets And Liabilities Measured On Recurring Basis

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



March 31, 2016	Level 1 ⁽¹⁾		Level 2 ⁽²⁾	Level 3 ⁽³⁾	Total
Assets:
Deferred compensation plan assets (mutual funds)	$	1,483	—	—	1,483
Liabilities:
Derivative stock appreciation rights	$	—	—	28,290	28,290

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 March 31, 2016 and December 31, 2015 are as follows (amounts in thousands):



	March 31, 2016			December 31, 2015
	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Current and long-term debt	$	1,337,989	1,393,992	1,332,739	1,390,743

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 March 31, 2016:



	March 31, 2016
Expected term (in years)	2.8 - 6.8
Volatility	40	%
Risk-free interest rate	1.5	%

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 three months ended March 31, 2016 and 2015:



Fair Value Measurement Using Level 3 Inputs
	Derivative Stock Appreciation Rights
Balances at January 1, 2015	$	—
Issuance	21,660
Fair value adjustment at end of period, included in Other Income (Expense)	2,120
Balances at March 31, 2015	23,780

Balances at January 1, 2016	32,820
Fair value adjustment at end of period, included in Other Income (Expense)	(4,530		)
Balances at March 31, 2016	$	28,290