Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
F-16
7. Fair Value Measurements
The fair values of the Company’s cash and cash equivalents, joint interest and other receivables, short-term restricted funds and
investments approximate their carrying amounts due to their short-term duration. The following tables summarize the Company’s
significant financial instruments measured on a recurring basis as categorized by the fair value measurement hierarchy:
Level 1
Level 2
Balance as of
Carrying
Value
Fair
Value(1)
Carrying
Value
Fair
Value(1)
December 31,
2015
($ in thousands)
Cash and cash equivalents:
Cash .................................................................................. $ 33,173 $ 33,173 $
— $
— $ 33,173
Money market funds .........................................................
—
—
—
—
—
Commercial paper.............................................................
—
—
38,420
38,420
38,420
Subtotal .......................................................................
33,173
33,173
38,420
38,420
71,593
Restricted cash and cash equivalents:
Money market funds .........................................................
58,673
58,673
—
—
58,673
Commercial paper.............................................................
—
—
188,517 188,517
188,517
Corporate bonds................................................................
—
—
5,010
5,010
5,010
Certificates of deposit .......................................................
—
—
750
750
750
Subtotal .......................................................................
58,673
58,673
194,277 194,277
252,950
Short-term investments:
U.S. Agency securities......................................................
—
—
—
—
—
Corporate bonds................................................................
—
—
487,946 487,946
487,946
Commercial paper.............................................................
—
—
378,048 378,048
378,048
Certificates of deposit .......................................................
—
—
20,000
20,000
20,000
Subtotal .......................................................................
—
—
885,994 885,994
885,994
Total ............................................................................ $ 91,846 $ 91,846 $ 1,118,691 $ 1,118,691 $ 1,210,537
Level 1
Level 2
Balance as of
Carrying
Value
Fair
Value(1)
Carrying
Value
Fair
Value(1)
December 31,
2014
($ in thousands)
Cash and cash equivalents:
Cash .................................................................................. $ 45,733 $ 45,733 $
— $
— $ 45,733
Money market funds .........................................................
122,218
122,218
—
—
122,218
Commercial paper.............................................................
—
—
70,524
70,524
70,524
Corporate bonds................................................................
—
—
8,229
8,229
8,229
Subtotal .......................................................................
167,951
167,951
78,753
78,753
246,704
Short-term investments:
U.S. Agency securities......................................................
—
—
24,996
24,996
24,996
Corporate bonds................................................................
—
—
986,985 986,985
986,985
Commercial paper.............................................................
—
—
413,010 413,010
413,010
Certificates of deposit .......................................................
—
—
105,215 105,215
105,215
Subtotal .......................................................................
—
— 1,530,206 1,530,206 1,530,206
Long-term investments:
Corporate bonds................................................................
—
—
326,047 326,047
326,047
Subtotal .......................................................................
—
—
326,047 326,047
326,047
Total ............................................................................ $ 167,951 $ 167,951 $ 1,935,006 $ 1,935,006 $ 2,102,957
(1) As of December 31, 2015 and December 31, 2014, the Company did not record any OTTI on these assets.