The fair values of our Equity Derivatives are based on the quoted market value of RCI’s Class B Non-Voting shares. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. The estimates are subjective in nature and involve uncertainties and matters of judgment. Our disclosure of the three-level hierarchy reflects the significance of the inputs used in measuring fair value: The table below shows the financial instruments carried at fair value by valuation method as at December 31, 2013 and 2012. There were no material financial instruments categorized in Level 3 as at December 31, 2013 and 2012. We measure our long-term debt initially at fair value, and then at amortized cost using the effective interest method, as follows. 1 Long-term debt (including current portion) is measured at level 2 in the three-level fair value hierarchy, based on year-end trading values as discussed above. We did not have any non-derivative held-to-maturity financial assets during the years ended December 31, 2013 and 2012. 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 117 NOTE 21: OTHER LONG-TERM LIABILITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Fair value measurements at reporting date Carrying value Level 1 Level 2 2013 Dec. 31, 2012 2013 Dec. 31, 2012 2013 Dec. 31, 2012 Financial assets Available-for-sale, measured at fair value: Investments in publicly traded companies $ 809 $ 624 $ 809 $ 624 $ – $ – Held-for-trading: Debt Derivatives accounted for as cash flow hedges 184 34 – – 184 34 Debt Derivatives not accounted for as hedges – 3 – – – 3 Expenditure Derivatives accounted for as cash flow hedges 37 13 – – 37 13 $ 1,030 $ 674 $ 809 $ 624 $ 221 $5 0 Financial liabilities Held-for-trading: Debt Derivatives accounted for as cash flow hedges $ 133 $ 561 $ – $ – $ 133 $ 561 Equity Derivatives not accounted for as cash flow hedges 13 – – – 13 – $ 146 $ 561 $ – $ – $ 146 $ 561 2013 2012 Carrying amount Fair value 1 Carrying amount Fair value 1 Long-term debt (including current portion) $ 13,343 $ 14,463 $ 10,789 $ 12,603 Note 2013 2012 Deferred pension liability 22 $ 189 $ 343 Supplemental executive retirement plan 22 49 45 Restricted share units 31 28 CRTC commitments 18 9 Deferred compensation 12 13 Deferred inducements 9 – Stock appreciation rights 5 9 Program rights liability 2 5 Other 13 6 $ 328 $ 458 GLYPH<129> We determine fair value of financial assets and financial liabilities in Level 1 by referring to quoted prices in active markets for identical assets and liabilities. GLYPH<129> Financial assets and financial liabilities in Level 2 include valuations using inputs based on observable market data, either directly or indirectly, other than the quoted prices. GLYPH<129> Level 3 valuations are based on inputs that are not based on observable market data.