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Annual report pursuant to Section 13 and 15(d)

Assets And Liabilities Measured At Fair Value (Tables)

v3.20.4
Assets And Liabilities Measured At Fair Value (Tables)
12 Months Ended
Dec. 31, 2020
Assets and Liabilities Measured at Fair Value

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¶Ù±ð³¦±ð³¾²ú±ð°ùÌý31,Ìý2020

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¶Ù±ð³¦±ð³¾²ú±ð°ùÌý31,Ìý2019

Ìý

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ÌýÌýÌýÌý

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ÌýÌýÌýÌý

QuotedÌýprices

ÌýÌýÌýÌý

SignificantÌýother

ÌýÌýÌýÌý

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ÌýÌýÌýÌý

QuotedÌýprices

ÌýÌýÌýÌý

SignificantÌýother

Ìý

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inÌýactiveÌýmarkets

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observable

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inÌýactiveÌýmarkets

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observable

Ìý

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forÌýidenticalÌýassets

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inputs

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forÌýidenticalÌýassets

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inputs

Ìý

Description

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Total

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(LevelÌý1)

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(LevelÌý2)

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Total

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(LevelÌý1)

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(LevelÌý2)

Ìý

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amountsÌýinÌýmillions

Ìý

Cash equivalents

ÌýÌýÌýÌý

$

2,586

ÌýÌýÌýÌý

2,586

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

992

ÌýÌýÌýÌý

992

ÌýÌýÌýÌý

—

ÌýÌý

Debt and equity securities

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$

266

ÌýÌýÌýÌý

181

ÌýÌýÌýÌý

85

Ìý

353

ÌýÌýÌýÌý

242

ÌýÌýÌýÌý

111

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Financial instrument assets

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$

424

ÌýÌýÌýÌý

84

ÌýÌýÌýÌý

340

Ìý

532

ÌýÌýÌýÌý

63

ÌýÌýÌýÌý

469

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Debt

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$

4,545

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

4,545

Ìý

3,678

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

3,678

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Financial instrument liabilities

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$

106

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

106

Ìý

53

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

53

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Realized and Unrealized Gains (Losses) on Financial Instruments

Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following (amounts in millions):

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YearsÌýendedÌýDecemberÌý31,

Ìý

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ÌýÌýÌýÌý

2020

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

Ìý

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Ìý

Debt and equity securities

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$

(74)

Ìý

110

Ìý

2

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Debt measured at fair value (a)

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Ìý

(114)

Ìý

(584)

Ìý

130

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Change in fair value of bond hedges (b)

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(127)

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215

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(94)

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Other derivatives

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Ìý

(87)

Ìý

(56)

Ìý

2

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$

(402)

Ìý

(315)

Ìý

40

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(a) The Company elected to account for its exchangeable senior debentures and cash convertible notes using the fair value option. Changes in the fair value of the exchangeable senior debentures and cash convertible notes recognized in the consolidated statements of operations are primarily due to market factors primarily driven by changes in the fair value of the underlying shares into which the debt is exchangeable. The Company isolates the portion of the unrealized gain (loss) attributable to changes in the instrument specific credit risk and recognizes such amount in other comprehensive earnings (loss). The change in the fair value of the exchangeable senior debentures and cash convertible notes attributable to changes in the instrument specific credit risk was a gain of $148 million, loss of $16 million and gain of $41 million for the years ended December 31, 2020, 2019 and 2018, respectively, and the cumulative change was a gain of $175 million as of December 31, 2020.
(b) Contemporaneously with the issuance of the Convertible Notes, Liberty entered into privately negotiated cash convertible note hedges, which are expected to offset potential cash payments Liberty would be required to make in excess of the principal amount of the convertible notes, upon conversion of the notes. The bond hedges are marked to market based on the trading price of underlying SeriesÌýA Liberty SiriusXM, Liberty Braves and Liberty Formula One securities and other observable market data as the significant inputs (LevelÌý2). See noteÌý9 for additional discussion of the convertible notes and the bond hedges.