14. FAIR VALUE MEASUREMENTS:  Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income  approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or  replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure  fair value. The following is a brief description of those three levels: The carrying value and fair value of our notes, debentures, program contracts payable and non-cancelable commitments as of  December 31, 2010 and 2009 were as follows (in thousands):  (a) Future program liabilities reflect a license agreement for program material that is not yet available for its first showing or telecast and  is, therefore, not recorded as an asset or liability on our balance sheet. Our notes, except the 3.0% and 4.875% Notes are fair valued using Level 1 hierarchy inputs described above. The carrying  value of our 3.0% and 4.875% Notes approximates their fair value. Our Term Loan B and Cunningham’s bank credit facility are  fair valued using Level 2 hierarchy inputs described above.  Our estimates of active program contracts payable and future program liabilities were based on discounted cash flows using  Level 3 inputs described above. The discount rate represents an estimate of a market participants return and risk applicable to  program contracts.  $_{•}$  Level 1:  Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. $_{•}$  Level 2:  Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These  include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or  liabilities in markets that are not active. $_{•}$  Level 3:  Unobservable inputs that reflect the reporting entity’s own assumptions. 2010  2009  Carrying Value Fair Value  Carrying Value Fair Value  8.0% Notes  $ —  $ —  $ 225,488  $ 220,731  6.0% Notes  66,019 70,385 122,482 111,991 4.875% Notes  5,685  5,685  37,016  36,091  3.0% Notes  5,400 5,400 27,383 27,044 8.375% Notes  246,493  258,750  —  —  9.25% Notes  487,724  544,690 486,519  518,125 Term Loan B  264,352   273,240  323,551   314,306  Cunningham Bank Credit  Facility  21,933  22,452 32,900  32,900 Active program contracts  payable  97,894  89,145  140,443  124,951  Future program liabilities (a)  88,510 72,823 70,038 56,202 Total fair value $ 1,284,010  $ 1,342,570  $ 1,465,820  $ 1,442,341  2010 Annual Report    59 