American Home Shield 2015 Annual Report Download - page 105

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Table of Contents
87
The carrying amount and estimated fair value of the Company’s financial instruments that are recorded at fair value on a
recurring basis for the periods presented are as follows:
Estimated Fair Value Measurements
Quoted Significant
Prices In Other Significant
Active Observable Unobservable
Statement of Financial Carrying Markets Inputs Inputs
(In millions) Position Location Value (Level 1) (Level 2) (Level 3)
As of December 31, 2015:
Financial Assets:
Deferred compensation trust Long-term marketable securities $ 8 $ 8 $ — $ —
Investments in marketable
securities Marketable securities and Long-
term marketable securities 73 38 35 —
Total financial assets $ 81 $ 46 $ 35 $ —
Financial Liabilities:
Fuel swap contracts Other accrued liabilities $ 4 $ — $ — $ 4
Interest rate swap contracts Other long-term liabilities 8 — 8 —
Total financial liabilities $ 12 $ — $ 8 $ 4
As of December 31, 2014:
Financial Assets:
Deferred compensation trust Long-term marketable securities $ 8 $ 8 $ — $ —
Investments in marketable
securities Marketable securities and Long-
term marketable securities 99 53 45 —
Total financial assets $ 107 $ 62 $ 45 $ —
Financial Liabilities:
Fuel swap contracts Other accrued liabilities $ 6 $ — $ — $ 6
Interest rate swap contracts Other long-term liabilities 4 — 4 —
Total financial liabilities $ 10 $ — $ 4 $ 6
A reconciliation of the beginning and ending fair values of financial instruments valued using significant unobservable inputs
(Level 3) on a recurring basis is presented as follows:
Fuel Swap
Contract
Assets
(In millions) (Liabilities) Location of Loss included in Earnings
Balance as of December 31, 2013 $ 1
Total losses (realized and unrealized)
Included in earnings (1) Cost of services rendered and products sold
Included in other comprehensive income (7)
Settlements 1
Balance as of December 31, 2014 (6)
Total (losses) gains (realized and unrealized)
Included in earnings (5) Cost of services rendered and products sold
Included in other comprehensive income 2
Settlements 5
Balance as of December 31, 2015 $ (4)
2015 Annual Report 103