Charter 2010 Annual Report Download - page 109

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F- F-PB
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2010, 2009, AND 2008
(dollars in millions, except share or per share data or where indicated)
Successor Predecessor
Year Ended
December 31,
2010
One Month
Ended
December 31,
2009
Eleven Months
Ended
November 31,
2009
Year Ended
December 31,
2008
Other income (expense), net:
Loss on interest rate derivates not designated
as hedges or ineffective portion of hedges $ -- $ -- $ (4) $ (62)
Gain on embedded derivatives -- -- -- 33
$ -- $ -- $ (4) $ (29)
Accumulated other comprehensive loss:
Loss on interest rate derivatives designated as
hedges (effective portion) $ (57) $ -- $ (9) $ (180)
$ (57) $ -- $ (9) $ (180)
Amount of gain (loss) reclassified from
accumulated other comprehensive loss into
interest expense or reorganization items, net $ (27) $ -- $ 275 $ (76)
 
Financial Assets and Liabilities
e Company has estimated the fair value of its financial instruments as of December 31, 2010 and 2009 using available market information
or other appropriate valuation methodologies. Considerable judgment, however, is required in interpreting market data to develop the
estimates of fair value. Accordingly, the estimates presented in the accompanying consolidated financial statements are not necessarily
indicative of the amounts the Company would realize in a current market exchange.
e carrying amounts of cash and cash equivalents, receivables, payables and other current assets and liabilities approximate fair value because
of the short maturity of those instruments.
e estimated fair value of the Company’s debt at December 31, 2010 and 2009 are based on quoted market prices and is classified within
Level 1 (defined below) of the valuation hierarchy.
A summary of the carrying value and fair value of the Company’s debt at December 31, 2010 and 2009 is as follows:
December 31, 2010 December 31, 2009
Carrying Fair Carrying Fair
Value Value Value Value
Debt
CCH II debt $ 2,057 $ 2,113 $ 2,092 $ 2,086
CCO Holdings debt $ 2,600 $ 2,709 $ 812 $ 816
Charter Operating debt $ 1,703 $ 1,774 $ 2,500 $ 2,527
Credit facilities $ 5,946 $ 6,252 $ 7,918 $ 8,000
e accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based upon the transparency of inputs to
the valuation of an asset or liability as of the measurement date, as follows: