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, 2017

Fair Value Assets and Liabilities Measured on Recurring Basis

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



March 31, 2017	Level 1 ⁽¹⁾		Level 2 ⁽²⁾	Level 3 ⁽³⁾	Total
Assets:
Deferred compensation plan assets (mutual funds)	$	1,331	—	—	1,331
Liabilities:
Derivative stock appreciation rights	$	—	—	32,610	32,610

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



	March 31, 2017			December 31, 2016
	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Current and long-term debt	$	1,367,106	1,439,970	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 March 31, 2017:



	March 31, 2017
Contractual term (in years)	1.8 to 5.8
Volatility	38	%
Risk-free interest rate	2.1	%

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, 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)	(4,530		)
Balance at March 31, 2016	$	28,290

Balance at January 1, 2017	$	29,700
Fair value adjustment at end of period, included in Other Income (Expense)	2,910
Balance at March 31, 2017	$	32,610