Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities Fair Value Measurements The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows: Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices. Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs. Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those valued with models requiring significant management judgment or estimation. Specific valuation methods include the following: Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted net asset value (NAV). Investments in equity securities and other funds — Equity securities are valued using quoted prices in active markets. The fair values for commingled funds are measured using NAVs, which take into consideration the value of underlying fund investments, as well as the other accrued assets and liabilities of a fund, in order to determine a per-share market value. The investments in commingled funds may be redeemed for NAV with proper notice. Proper notice varies by fund and can range from daily with one or two days notice to annually with 90 days notice. Private equity investments require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Unscheduled distributions from real estate investments may be redeemed with proper notice, which is typically quarterly with 45 - 90 days notice; however, withdrawals from real estate investments may be delayed or discounted as a result of fund illiquidity. Investments in debt securities — Fair values for debt securities are determined by a third party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities. Interest rate derivatives — The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — The methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2. When contractual settlements extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable forecasts of long-term forward prices and volatilities on a valuation is evaluated, and may result in Level 3 classification. Electric commodity derivatives held by NSP-Minnesota include transmission congestion instruments, generally referred to as financial transmission rights (FTRs), purchased from MISO. FTRs purchased from a RTO are financial instruments that entitle or obligate the holder to monthly revenues or charges based on transmission congestion across a given transmission path. The value of an FTR is derived from, and designed to offset, the cost of transmission congestion. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of an FTR. NSP-Minnesota’s valuation process for FTRs utilizes complex iterative modeling to predict the impacts of forecasted changes in these drivers of transmission system congestion on the historical pricing of FTR purchases. If forecasted costs of electric transmission congestion increase or decrease for a given FTR path, the value of that particular FTR instrument will likewise increase or decrease. Fair value measurements for FTRs have been assigned a Level 3 given the limited observability of management’s forecasts for several of the inputs to this complex valuation model. Non-trading monthly FTR settlements are included in fuel and purchased energy cost recovery mechanisms, and therefore changes in the fair value of the yet to be settled portions of most FTRs are deferred as a regulatory asset or liability. Given this regulatory treatment and the limited magnitude of NSP-Minnesota’s FTRs, the numerous unobservable quantitative inputs to the complex model used for valuation of FTRs are insignificant to the consolidated financial statements of NSP-Minnesota. Non-Derivative Instruments Fair Value Measurements Nuclear Decommissioning Fund The Nuclear Regulatory Commission requires NSP-Minnesota to maintain a portfolio of investments to fund the costs of decommissioning its nuclear generating plants. Together with all accumulated earnings or losses, the assets of the nuclear decommissioning fund are legally restricted for the purpose of decommissioning the Monticello and Prairie Island (PI) nuclear generating plants. The fund contains cash equivalents, debt securities, equity securities and other investments – all classified as available-for-sale. NSP-Minnesota plans to reinvest matured securities until decommissioning begins. NSP-Minnesota uses the MPUC approved asset allocation for the escrow and investment targets by asset class for both the escrow and qualified trust. NSP-Minnesota recognizes the costs of funding the decommissioning of its nuclear generating plants over the lives of the plants, assuming rate recovery of all costs. Given the purpose and legal restrictions on the use of nuclear decommissioning fund assets, realized and unrealized gains on fund investments over the life of the fund are deferred as an offset of NSP-Minnesota’s regulatory asset for nuclear decommissioning costs. Consequently, any realized and unrealized gains and losses on securities in the nuclear decommissioning fund, including any other-than-temporary impairments, are deferred as a component of the regulatory asset for nuclear decommissioning. Unrealized gains for the nuclear decommissioning fund were $428.2 million and $378.6 million at March 31, 2017 and Dec. 31, 2016 , respectively, and unrealized losses and amounts recorded as other-than-temporary impairments were $31.7 million and $46.9 million at March 31, 2017 and Dec. 31, 2016 , respectively. The following tables present the cost and fair value of NSP-Minnesota’s non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund at March 31, 2017 and Dec. 31, 2016 : March 31, 2017 Fair Value (Thousands of Dollars) Cost Level 1 Level 2 Level 3 Investments Measured at NAV (b) Total Nuclear decommissioning fund (a) Cash equivalents $ 24,161 $ 24,161 $ — $ — $ — $ 24,161 Commingled funds: Non U.S. equities 272,437 178,990 — — 98,876 277,866 Emerging market debt funds 94,772 — — — 101,269 101,269 Commodity funds 106,571 — — — 88,749 88,749 Private equity investments 137,176 — — — 194,912 194,912 Real estate 125,410 — — — 187,609 187,609 Other commingled funds 151,048 — — — 161,936 161,936 Debt securities: Government securities 27,369 — 27,199 — — 27,199 U.S. corporate bonds 127,841 — 128,799 — — 128,799 Non U.S. corporate bonds 25,345 — 25,556 — — 25,556 Municipal bonds 5 — 5 — — 5 Equity securities: U.S. equities 275,101 501,543 — — — 501,543 Non U.S. equities 188,763 232,851 — — — 232,851 Total $ 1,555,999 $ 937,545 $ 181,559 $ — $ 833,351 $ 1,952,455 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $48.9 million of rabbi trust assets and miscellaneous investments. (b) Due to limited availability of published pricing and a lack of immediate redeemability, certain fund investments measured at NAV are not required to be categorized within the fair value hierarchy. Dec. 31, 2016 Fair Value (Thousands of Dollars) Cost Level 1 Level 2 Level 3 Investments Measured at NAV (b) Total Nuclear decommissioning fund (a) Cash equivalents $ 20,379 $ 20,379 $ — $ — $ — $ 20,379 Commingled funds: Non U.S. equities 260,877 133,126 — — 112,233 245,359 Emerging market debt funds 93,597 — — — 97,543 97,543 Commodity funds 106,571 — — — 92,091 92,091 Private equity investments 132,190 — — — 190,462 190,462 Real estate 128,630 — — — 187,647 187,647 Other commingled funds 151,048 — — — 159,489 159,489 Debt securities: Government securities 32,764 — 31,965 — — 31,965 U.S. corporate bonds 104,913 — 105,772 — — 105,772 Non U.S. corporate bonds 21,751 — 21,672 — — 21,672 Municipal bonds 13,609 — 13,786 — — 13,786 Mortgage-backed securities 2,785 — 2,816 — — 2,816 Equity securities: U.S. equities 270,779 473,400 — — — 473,400 Non U.S. equities 189,100 218,381 — — — 218,381 Total $ 1,528,993 $ 845,286 $ 176,011 $ — $ 839,465 $ 1,860,762 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $44.3 million of rabbi trust assets and miscellaneous investments. (b) Due to limited availability of published pricing and a lack of immediate redeemability, certain fund investments measured at NAV are not required to be categorized within the fair value hierarchy. For the three months ended March 31, 2017 and 2016 there were no Level 3 nuclear decommissioning fund investments and no transfers of amounts between levels. The following table summarizes the final contractual maturity dates of the debt securities in the nuclear decommissioning fund, by asset class, at March 31, 2017 : Final Contractual Maturity (Thousands of Dollars) Due in 1 Year or Less Due in 1 to 5 Years Due in 5 to 10 Years Due after 10 Years Total Government securities $ — $ 1,100 $ 3,017 $ 23,082 $ 27,199 U.S. corporate bonds 354 38,741 74,617 15,087 128,799 International corporate bonds — 8,085 13,443 4,028 25,556 Municipal bonds — — 5 — 5 Debt securities $ 354 $ 47,926 $ 91,082 $ 42,197 $ 181,559 Rabbi Trusts In June 2016, NSP-Minnesota established a rabbi trust to provide partial funding for future deferred compensation plan distributions. The following tables present the cost and fair value of the assets held in rabbi trust at March 31, 2017 and Dec. 31, 2016 : March 31, 2017 Fair Value (Thousands of Dollars) Cost Level 1 Level 2 Level 3 Total Rabbi Trust (a) Cash equivalents $ 392 $ 392 $ — $ — $ 392 Mutual funds 8,745 9,089 — — 9,089 Total $ 9,137 $ 9,481 $ — $ — $ 9,481 Dec. 31, 2016 Fair Value (Thousands of Dollars) Cost Level 1 Level 2 Level 3 Total Rabbi Trusts (a) Cash equivalents $ 7,459 $ 7,459 $ — $ — $ 7,459 Mutual funds 1,663 1,901 — — 1,901 Total $ 9,122 $ 9,360 $ — $ — $ 9,360 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet. Derivative Instruments Fair Value Measurements NSP-Minnesota enters into derivative instruments, including forward contracts, futures, swaps and options, for trading purposes and to manage risk in connection with changes in interest rates, utility commodity prices and vehicle fuel prices. Interest Rate Derivatives — NSP-Minnesota enters into various instruments that effectively fix the interest payments on certain floating rate debt obligations or effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period. These derivative instruments are generally designated as cash flow hedges for accounting purposes. At March 31, 2017 , accumulated other comprehensive losses related to interest rate derivatives included $0.9 million of net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings, including forecasted amounts for unsettled hedges, as applicable. Wholesale and Commodity Trading Risk — NSP-Minnesota conducts various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy, energy-related instruments and natural gas related instruments, including derivatives. NSP-Minnesota’s risk management policy allows management to conduct these activities within guidelines and limitations as approved by its risk management committee, which is made up of management personnel not directly involved in the activities governed by this policy. Commodity Derivatives — NSP-Minnesota enters into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale, FTRs, vehicle fuel, and weather derivatives. NSP-Minnesota enters into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers but may not be designated as qualifying hedging transactions. Changes in the fair value of non-trading commodity derivative instruments are recorded in other comprehensive income or deferred as a regulatory asset or liability. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. NSP-Minnesota recorded immaterial amounts to income related to the ineffectiveness of cash flow hedges for the three months ended March 31, 2016 . Additionally, NSP-Minnesota enters into commodity derivative instruments for trading purposes not directly related to commodity price risks associated with serving its electric and natural gas customers. Changes in the fair value of these commodity derivatives are recorded in electric operating revenues, net of amounts credited to customers under margin-sharing mechanisms. The following table details the gross notional amounts of commodity forwards, options and FTRs at March 31, 2017 and Dec. 31, 2016 : (Amounts in Thousands) (a)(b) March 31, 2017 Dec. 31, 2016 Megawatt hours of electricity 21,044 37,805 Million British thermal units of natural gas 77,728 79,520 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. The following tables detail the impact of derivative activity during the three months ended March 31, 2017 and 2016 on accumulated other comprehensive loss, regulatory assets and liabilities and income: Three Months Ended March 31, 2017 Pre-Tax Fair Value Pre-Tax (Gains) Losses Pre-Tax Gains (Losses) Recognized (Thousands of Dollars) Accumulated Regulatory Accumulated Regulatory Derivatives designated as cash flow hedges Interest rate $ — $ — $ 342 (a) $ — $ — Total $ — $ — $ 342 $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 622 (c) Electric commodity — (1,247 ) — (2,788 ) (d) — Natural gas commodity — (665 ) — 698 (e) (945 ) (e) Total $ — $ (1,912 ) $ — $ (2,090 ) $ (323 ) Three Months Ended March 31, 2016 Pre-Tax Fair Value Pre-Tax Losses Pre-Tax Gains (Losses) (Thousands of Dollars) Accumulated Regulatory Accumulated Regulatory Derivatives designated as cash flow hedges Interest rate $ — $ — $ 346 (a) $ — $ — Vehicle fuel and other commodity (2 ) — 31 (b) — — Total $ (2 ) $ — $ 377 $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 992 (c) Electric commodity — (1,558 ) — 10,712 (d) — Natural gas commodity — (631 ) — 3,460 (e) (1,595 ) (e) Total $ — $ (2,189 ) $ — $ 14,172 $ (603 ) (a) Amounts are recorded to interest charges. (b) Amounts are recorded to O&M expenses. (c) Amounts are recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue, as appropriate. (d) Amounts are recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. (e) Amounts are recorded to cost of natural gas sold and transported. These derivative settlement gains and losses are shared with natural gas customers through purchased natural gas cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. NSP-Minnesota had no derivative instruments designated as fair value hedges during the three months ended March 31, 2017 and 2016 . Therefore, no gains or losses from fair value hedges or related hedged transactions were recognized for these periods. Consideration of Credit Risk and Concentrations — NSP-Minnesota continuously monitors the creditworthiness of the counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement, and assesses each counterparty’s ability to perform on the transactions set forth in the contracts. Given this assessment, as well as an assessment of the impact of NSP-Minnesota’s own credit risk when determining the fair value of derivative liabilities, the impact of considering credit risk was immaterial to the fair value of unsettled commodity derivatives presented in the consolidated balance sheets. NSP-Minnesota employs additional credit risk control mechanisms when appropriate, such as letters of credit, parental guarantees, standardized master netting agreements and termination provisions that allow for offsetting of positive and negative exposures. Credit exposure is monitored and, when necessary, the activity with a specific counterparty is limited until credit enhancement is provided. NSP-Minnesota’s most significant concentrations of credit risk with particular entities or industries are contracts with counterparties to its wholesale, trading and non-trading commodity activities. At March 31, 2017 , five of NSP-Minnesota’s 10 most significant counterparties for these activities, comprising $30.1 million or 38 percent of this credit exposure, had investment grade credit ratings from Standard & Poor’s, Moody’s or Fitch Ratings. Four of the 10 most significant counterparties, comprising $17.1 million or 22 percent of this credit exposure, were not rated by these external agencies, but based on NSP-Minnesota’s internal analysis, had credit quality consistent with investment grade. Another of these significant counterparties, comprising $0.9 million or 1 percent of this credit exposure, had credit quality less than investment grade, based on ratings from internal analysis. All ten of these significant counterparties are municipal or cooperative electric entities, or other utilities. Credit Related Contingent Features — Contract provisions for derivative instruments that NSP-Minnesota enters into, including those recorded to the consolidated balance sheet at fair value, as well as those accounted for as normal purchase-normal sale contracts and therefore not reflected on the balance sheet, may require the posting of collateral or settlement of the contracts for various reasons, including if NSP-Minnesota is unable to maintain its credit ratings. At March 31, 2017 and Dec. 31, 2016 , there were no derivative instruments in a liability position with underlying contract provisions that required the posting of collateral or settlement of outstanding contracts if the credit ratings of NSP-Minnesota were downgraded below investment grade. Certain derivative instruments are also subject to contract provisions that contain adequate assurance clauses. These provisions allow counterparties to seek performance assurance, including cash collateral, in the event that NSP-Minnesota’s ability to fulfill its contractual obligations is reasonably expected to be impaired. NSP-Minnesota had no collateral posted related to adequate assurance clauses in derivative contracts as of March 31, 2017 and Dec. 31, 2016 . Recurring Fair Value Measurements — The following table presents for each of the fair value hierarchy levels, NSP-Minnesota’s derivative assets and liabilities measured at fair value on a recurring basis at March 31, 2017 : March 31, 2017 Fair Value Fair Value Total Counterparty Netting (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Total Current derivative assets Other derivative instruments: Commodity trading $ 4,015 $ 7,307 $ — $ 11,322 $ (6,258 ) $ 5,064 Electric commodity — — 5,659 5,659 (223 ) 5,436 Total current derivative assets $ 4,015 $ 7,307 $ 5,659 $ 16,981 $ (6,481 ) 10,500 PPAs (a) 617 Current derivative instruments $ 11,117 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 198 $ 32,272 $ — $ 32,470 $ (7,295 ) $ 25,175 Total noncurrent derivative assets $ 198 $ 32,272 $ — $ 32,470 $ (7,295 ) 25,175 PPAs (a) 866 Noncurrent derivative instruments $ 26,041 March 31, 2017 Fair Value Fair Value Total Counterparty Netting (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Total Current derivative liabilities Other derivative instruments: Commodity trading $ 4,777 $ 5,026 $ — $ 9,803 $ (6,777 ) $ 3,026 Electric commodity — — 223 223 (223 ) — Total current derivative liabilities $ 4,777 $ 5,026 $ 223 $ 10,026 $ (7,000 ) 3,026 PPAs (a) 14,110 Current derivative instruments $ 17,136 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 204 $ 23,434 $ 793 $ 24,431 $ (10,463 ) $ 13,968 Total noncurrent derivative liabilities $ 204 $ 23,434 $ 793 $ 24,431 $ (10,463 ) 13,968 PPAs (a) 100,556 Noncurrent derivative instruments $ 114,524 (a) During 2006, NSP-Minnesota qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. (b) NSP-Minnesota nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2017 . At March 31, 2017 , derivative assets and liabilities include no obligations to return cash collateral and rights to reclaim cash collateral of $3.7 million . The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. The following table presents for each of the fair value hierarchy levels, NSP-Minnesota’s derivative assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2016 : Dec. 31, 2016 Fair Value Fair Value Total Counterparty Netting (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Total Current derivative assets Other derivative instruments: Commodity trading $ 12,053 $ 8,651 $ — $ 20,704 $ (15,500 ) $ 5,204 Electric commodity — — 15,997 15,997 (677 ) 15,320 Natural gas commodity — 912 — 912 — 912 Total current derivative assets $ 12,053 $ 9,563 $ 15,997 $ 37,613 $ (16,177 ) 21,436 PPAs (a) 592 Current derivative instruments $ 22,028 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 100 $ 31,029 $ — $ 31,129 $ (7,323 ) $ 23,806 Total noncurrent derivative assets $ 100 $ 31,029 $ — $ 31,129 $ (7,323 ) 23,806 PPAs (a) 872 Noncurrent derivative instruments $ 24,678 Dec. 31, 2016 Fair Value Fair Value Total Counterparty Netting (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Total Current derivative liabilities Other derivative instruments: Commodity trading $ 12,397 $ 5,964 $ — $ 18,361 $ (15,837 ) $ 2,524 Electric commodity — — 677 677 (677 ) — Total current derivative liabilities $ 12,397 $ 5,964 $ 677 $ 19,038 $ (16,514 ) 2,524 PPAs (a) 14,082 Current derivative instruments $ 16,606 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 89 $ 23,424 $ — $ 23,513 $ (10,727 ) $ 12,786 Total noncurrent derivative liabilities $ 89 $ 23,424 $ — $ 23,513 $ (10,727 ) 12,786 PPAs (a) 104,018 Noncurrent derivative instruments $ 116,804 (a) During 2006, NSP-Minnesota qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. (b) NSP-Minnesota nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2016 . At Dec. 31, 2016 , derivative assets and liabilities include no obligations to return cash collateral and rights to reclaim cash collateral of $3.7 million . The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. The following table presents the changes in Level 3 commodity derivatives for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31 (Thousands of Dollars) 2017 2016 Balance at Jan. 1 $ 15,320 $ 12,970 Purchases 280 — Settlements (3,426 ) (5,038 ) Net transactions recorded during the period: Losses recognized in earnings (a) (792 ) (24 ) Net losses recognized as regulatory assets and liabilities (6,739 ) (2,784 ) Balance at March 31 $ 4,643 $ 5,124 (a) These amounts relate to commodity derivatives held at the end of the period. NSP-Minnesota recognizes transfers between levels as of the beginning of each period. There were no transfers of amounts between levels for derivative instruments for the three months ended March 31, 2017 and 2016. Fair Value of Long-Term Debt As of March 31, 2017 and Dec. 31, 2016 , other financial instruments for which the carrying amount did not equal fair value were as follows: March 31, 2017 Dec. 31, 2016 (Thousands of Dollars) Carrying Amount Fair Value Carrying Fair Value Long-term debt, including current portion $ 4,844,227 $ 5,304,592 $ 4,843,165 $ 5,310,925 The fair value of NSP-Minnesota’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. The fair value estimates are based on information available to management as of March 31, 2017 and Dec. 31, 2016 , and given the observability of the inputs to these estimates, the fair values presented for long-term debt have been assigned a Level 2. |