Financial Instruments

The following table provides a summary of the Company’s significant financial assets and liabilities carried at fair value and measured on a recurring basis (in thousands):



			Fair Value Measurements at December 31, 2015
	Carrying Value at December 31, 2015		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Restricted investments:
Rabbi Trust	$	13,071	$	—	$	13,071	$	—
Fixed income securities	$	1,717	$	—	$	1,717	$	—
Interest rate cap derivatives	$	93	$	—	$	93	$	—
Liabilities:
Interest rate swap derivatives	$	20,835	$	—	$	20,835	$	—



			Fair Value Measurements at December 31, 2014
	Carrying Value at December 31, 2014		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Restricted investments:
Rabbi Trust	$	11,281	$	—	$	11,281	$	—
Fixed income securities	$	1,966	$	—	$	1,966	$	—
Interest rate cap derivatives	570				570
Liabilities:
Interest rate swap derivatives	$	19,248	$	—	$	19,248	$	—

The Company’s level 2 financial instruments included in the tables above as of December 31, 2015 and 2014 consist of the Company’s rabbi trust established for GEO employee and employer contributions to The GEO Group, Inc. Non-qualified Deferred Compensation Plan, interest rate swaps and interest rate caps held by our Australian subsidiaries and an investment in Canadian dollar denominated fixed income securities. The Company's restricted investment in the Rabbi Trust is invested in Company owned life insurance policies which are recorded at their cash surrender values. These investments are valued based on the underlying investments held in the policies' separate account. The Australian subsidiaries' interest rate swaps and interest rate caps are valued using a discounted cash flow model based on projected Australian borrowing rates. The Canadian dollar denominated securities, not actively traded, are valued using quoted rates for these and similar securities.