United states securities and exchange commission

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

Set out below, is a comparison by class of the carrying amounts and fair values of the Company’s financial instruments, other than those for which carrying amounts are reasonable approximations of fair values:

 

		Carrying amount								Fair value
		2016				2015				2016				2015
Assets
Derivative financial instruments		Ps.	867,809			Ps.	78,725			Ps.	867,809			Ps.	78,725
Liabilities
Financial debt			(1,988,181	)			(1,583,678	)			(1,331,931	)			(1,587,889	)
Derivative financial instruments			(14,144	)			(55,774	)			(14,144	)			(55,774	)
Total		Ps.	(1,134,516	)		Ps.	(1,560,727	)		Ps.	(478,266	)		Ps.	(1,564,938	)

The following table summarizes the fair value measurements at December 31, 2016:

 

		Fair value measurement
		Quoted prices in active markets Level 1				Significant observable inputs Level 2				Significant unobservable inputs Level 3				Total
Assets
Derivatives financial instruments:
Jet fuel Asian call options contracts*		Ps.	—			Ps.	867,809			Ps.	—			Ps.	867,809
Liabilities
Derivatives financial instruments:
Interest rate swap contracts**			—				(14,144	)			—				(14,144	)
Liabilities for which fair values are disclosed:
Interest-bearing loans and borrowings**			—				(1,331,931	)			—				(1,331,931	)
Net		Ps.	—			Ps.	(478,266	)		Ps.	—			Ps.	(478,266	)

 

*	Jet fuel forwards levels and LIBOR curve.
**	LIBOR curve.

 

F-43

Table of Contents

There were no transfers between level 1 and level 2 during the period.

The following table summarizes the fair value measurements at December 31, 2015:

 

		Fair value measurement
		Quoted prices in active markets Level 1				Significant observable inputs Level 2				Significant unobservable inputs Level 3				Total
Assets
Derivatives financial instruments:
Jet fuel Asian call options contracts*		Ps.	—			Ps.	78,725			Ps.	—			Ps.	78,725
Liabilities
Derivatives financial instruments:
Interest rate swap contracts**			—				(55,774	)			—				(55,774	)
Liabilities for which fair values are disclosed:
Interest-bearing loans and borrowings**			—				(1,587,889	)			—				(1,587,889	)
Net		Ps.	—			Ps.	(1,564,938	)		Ps.	—			Ps.	(1,564,938	)

 

*	Jet fuel forwards levels and LIBOR curve.
**	LIBOR curve.

There were no transfers between level 1 and level 2 during the period.

The following table summarizes the (loss) gain from derivatives financial instruments recognized in the consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014: