Note 16. Fair Value

We believe the carrying values of our financial instruments related to current assets and current liabilities approximate fair value. The following table presents the carrying amounts and estimated fair values of our long-term financial instruments (in millions):


		June 30, 2014				December 31, 2013
	Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Restricted cash	1	$	4	$	4	$	3	$	3
VOI notes receivable	3		255		319		217		271
Securitized vacation ownership notes receivable	3		270		343		315		398
Other notes receivable	3		34		34		18		18

Total financial assets		$	563	$	700	$	553	$	690

Liabilities:
Long-term debt	1	$	1,423	$	1,548	$	1,265	$	1,367
Long-term securitized debt	3		214		224		258		270

Total financial liabilities		$	1,637	$	1,772	$	1,523	$	1,637

Off-Balance sheet:
Letters of credit	2	$	—	$	82	$	—	$	116
Surety bonds	2		—		28		—		81

Total off-balance sheet		$	—	$	110	$	—	$	197

The carrying value of our restricted cash approximates its fair value. We estimate the fair value of our VOI notes receivable and securitized VOI notes receivable using assumptions related to current or recent securitization market transactions. The amount is then compared to a discounted expected future cash flow model using a discount rate commensurate with the risk of the underlying notes, primarily determined by the credit worthiness of the borrowers based on their FICO scores. The results of these two methods are then evaluated to determine the estimated fair value. The fair value of other notes receivable is estimated based on the terms of the instrument and current market conditions. These financial instrument assets are recorded in the other assets line item in our consolidated balance sheet.

We estimate the fair value of our publicly traded debt based on the bid prices in the public debt markets. The carrying amount of our floating rate debt is a reasonable basis of fair value due to the variable nature of the interest rates. Our non-public, securitized debt and fixed rate debt fair value is determined based upon discounted cash flows for the debt rates deemed reasonable for the type of debt, prevailing market conditions and the length to maturity for the debt.

The fair values of our letters of credit and surety bonds are estimated to be the same as the contract values based on the nature of the fee arrangements with the issuing financial institutions.