Charter 2015 Annual Report Download - page 123

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2015, 2014 AND 2013
(dollars in millions, except share or per share data or where indicated)
F- 26
The interest rate derivative instruments are valued using a present value calculation based on an implied forward LIBOR curve
(adjusted for Charter Operating’s or counterparties’ credit risk). The weighted average pay rate for the Company’s currently
effective interest rate derivative instruments was 1.61% and 1.87% at December 31, 2015 and 2014, respectively (exclusive of
applicable spreads).
The Company's financial instruments that are accounted for at fair value on a recurring basis are presented in the table below.
December 31, 2015 December 31, 2014
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets
Money market funds $ 14,330 $ — $ — $ 4,112 $ — $ —
Commercial paper $ — $ 7,934 $ — $ — $ 2,999 $ —
Liabilities
Interest rate derivatives $ — $ 13 $ — $ — $ 18 $ —
A summary of the carrying value and fair value of the Company’s debt at December 31, 2015 and 2014 is as follows:
December 31, 2015 December 31, 2014
Carrying
Value Fair Value
Carrying
Value Fair Value
Debt
Senior notes $ 28,433 $ 28,744 $ 13,725 $ 14,205
Credit facilities $ 7,290 $ 7,274 $ 7,162 $ 7,186
The estimated fair value of the Company’s senior notes at December 31, 2015 and 2014 is based on quoted market prices in active
markets and is classified within Level 1 of the valuation hierarchy, while the estimated fair value of the Company's credit facilities
is based on quoted market prices in inactive markets and is classified within Level 2.
Non-financial Assets and Liabilities
The Company’s non-financial assets such as franchises, property, plant, and equipment, and other intangible assets are not measured
at fair value on a recurring basis; however they are subject to fair value adjustments in certain circumstances, such as when there
is evidence that an impairment may exist. No impairments were recorded in 2015, 2014 and 2013.