Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v3.3.1.900
Fair Value Measurements
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Fair Value Measurements

(4)

Fair Value Measurements

The fair value of a financial instrument is the amount at which the instrument could be exchanged in an orderly transaction between market participants.  As of December 31, 2015 and 2014, the carrying amounts of cash and cash equivalents, receivables, and accounts payable approximated fair value due to the short-term nature of these instruments. ASC 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy for input into valuation techniques as follows:

 

i.

Level 1 input: unadjusted quoted prices in active markets for identical instrument;

 

ii.

Level 2 input: observable market data for the same or similar instrument but not Level 1, including quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

 

iii.

Level 3 input: unobservable inputs developed using management's assumptions about the inputs used for pricing the asset or liability.

Investments are periodically reviewed for impairment and an impairment is recorded whenever declines in fair value below carrying value are determined to be other than temporary.  In making this determination, we consider, among other factors, the severity and duration of the decline as well as the likelihood of a recovery within a reasonable timeframe.

Our assets and liabilities measured at fair value were as follows:

 

 

 

December 31, 2015

 

 

December 31, 2014

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total Fair

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total Fair

Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sirius XM Canada Holdings Inc.

   (“Sirius XM Canada”) - investment (a)

 

$

141,850

 

 

 

—

 

 

 

—

 

 

$

141,850

 

 

$

246,500

 

 

 

—

 

 

 

—

 

 

$

246,500

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt (b)

 

 

—

 

 

$

5,649,173

 

 

 

—

 

 

$

5,649,173

 

 

 

—

 

 

$

4,613,044

 

 

 

—

 

 

$

4,613,044

 

 

(a)

This amount approximates fair value.  The carrying value of our investment in Sirius XM Canada was $0 and $2,654 as of December 31, 2015 and 2014, respectively.

(b)

The fair value for non-publicly traded instruments is based upon estimates from a market maker and brokerage firm.  Refer to Note 13 for information related to the carrying value of our debt as of December 31, 2015 and 2014.