Windstream 2014 Annual Report Download - page 177

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-61
5. Derivative Instruments, Continued:
Information pertaining to derivative liabilities was as follows:
Gross Amounts Not Offset
in the Consolidated
Balance Sheets
(Millions)
Gross Amount of
Recognized
Liabilities
Net Amount of
Liabilities presented in
the Consolidated
Balance Sheets
Financial
Instruments
Cash
Collateral
Received
Net
Amount
December 31, 2014:
Derivatives $ 77.2 $ 77.2 $ (0.3) $ — $ 76.9
December 31, 2013:
Derivatives $ 71.8 $ 71.8 $ — $ — $ 71.8
6. Fair Value Measurements:
Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be
received to sell an asset or transfer a liability in an orderly transaction between market participants. Authoritative guidance defines
the following three tier hierarchy for assessing the inputs used in fair value measurements:
Level 1 – Quoted prices in active markets for identical assets or liabilities
Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities
Level 3 – Unobservable inputs
The highest priority is given to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement)
and the lowest priority is given to unobservable inputs (level 3 measurement). Assets and liabilities are classified in their entirety
based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular
input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their
placement within the fair value hierarchy levels.
Our non-financial assets and liabilities, including property, plant and equipment, goodwill, intangible assets and asset retirement
obligations, are measured at fair value on a non-recurring basis. No event occurred during the year ended December 31, 2014
requiring these non-financial assets and liabilities to be subsequently recognized at fair value. Our financial instruments consist
primarily of cash and cash equivalents, restricted cash, accounts receivable, income tax receivable, accounts payable, long-term
debt, and interest rate swaps. The carrying amount of cash, restricted cash, accounts receivable, income tax receivable and accounts
payable was estimated by management to approximate fair value due to the relatively short period of time to maturity for those
instruments. Cash equivalents, long-term debt and interest rate swaps are measured at fair value on a recurring basis. Cash
equivalents were not significant as of December 31, 2014 or 2013.