Spirit Airlines 2015 Annual Report Download - page 90

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Notes to Financial Statements—(Continued)
90
readily available from public markets; therefore, the Company categorizes these instruments as Level 2. The interest rate swaps
were designated as cash flow hedges and, as a result, the changes in fair value of these derivatives were recorded in
accumulated other comprehensive income within the balance sheet and statement of other comprehensive income. As of
December 31, 2015, the Company had no outstanding interest rate swaps. As of December 31, 2014, the interest rate swaps
were recorded as a liability of approximately $1.1 million.
Long-Term Debt
The estimated fair value of the Company's non publicly held debt agreements has been determined to be Level 3 as
certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes a discounted cash
flow method to estimate the fair value of the Level 3 long-term debt. The estimated fair value of the Company's publicly held
debt agreements has been determined to be Level 2 as the Company utilizes quoted market prices to estimate the fair value of
it's public long-term debt.
The carrying amounts and estimated fair values of the Company's long-term debt, including current maturities, at
December 31, 2015 and December 31, 2014, were as follows:
As of December 31,
2015 2014
Carrying
Value Estimated
Fair Value Carrying
Value Estimated
Fair Value Fair value
level hierarchy
(in millions)
Senior long-term debt $ 484.2 $ 477.8 $ 132.0 $ 132.0 Level 3
Junior long-term debt 54.3 54.6 16.0 16.1 Level 3
Class A equipment trust certificates 95.8 94.8 — — Level 2
Class B equipment trust certificates 25.0 25.2 — — Level 2
Total long-term debt $ 659.3 $ 652.4 $ 148.0 $ 148.1
Cash and Cash Equivalents
Cash and cash equivalents at December 31, 2015 and December 31, 2014 are comprised of liquid money market funds
and cash and are categorized as Level 1 instruments. The Company maintains cash with various high-quality financial
institutions.
Assets and liabilities measured at gross fair value on a recurring basis are summarized below:
Fair Value Measurements as of December 31, 2015
Total Level
1Level
2Level
3
(in millions)
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 803.6 $ 803.6 $ — $ —
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 803.6 $ 803.6 $ — $ —
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ — $ —