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Annual report pursuant to Section 13 and 15(d)

Assets and Liabilities Measured at Fair Value (Tables)

v3.22.4
Assets and Liabilities Measured at Fair Value (Tables)
12 Months Ended
Dec. 31, 2022
Assets and Liabilities Measured at Fair Value

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¶Ù±ð³¦±ð³¾²ú±ð°ùÌý31,Ìý2022

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¶Ù±ð³¦±ð³¾²ú±ð°ùÌý31,Ìý2021

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

$

2,026

ÌýÌýÌýÌý

2,026

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

2,436

ÌýÌýÌýÌý

2,436

ÌýÌýÌýÌý

—

ÌýÌý

Short-term marketable securities

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$

—

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—

ÌýÌýÌýÌý

—

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70

ÌýÌýÌýÌý

70

ÌýÌýÌýÌý

—

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Investment in trust account

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$

—

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—

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—

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575

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575

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—

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Debt and equity securities

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$

80

ÌýÌýÌýÌý

80

ÌýÌýÌýÌý

—

Ìý

217

ÌýÌýÌýÌý

217

ÌýÌýÌýÌý

—

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Financial instrument assets

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$

393

ÌýÌýÌýÌý

86

ÌýÌýÌýÌý

307

Ìý

640

ÌýÌýÌýÌý

99

ÌýÌýÌýÌý

541

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Debt

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$

3,331

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

3,331

Ìý

5,222

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

5,222

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Financial instrument liabilities

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$

—

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

—

Ìý

59

ÌýÌýÌýÌý

20

ÌýÌýÌýÌý

39

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Realized and Unrealized Gains (Losses) on Financial Instruments

Realized and unrealized gains (losses) on financial instruments, net 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

2022

ÌýÌýÌýÌý

2021

ÌýÌýÌýÌý

2020

Ìý

Debt and equity securities

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$

(7)

Ìý

204

Ìý

(74)

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Debt measured at fair value (a)

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Ìý

717

Ìý

(886)

Ìý

(114)

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Change in fair value of bond hedges (b)

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(236)

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193

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(127)

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Other

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Ìý

125

Ìý

38

Ìý

(87)

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$

599

Ìý

(451)

Ìý

(402)

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(a) The Company elected to account for its exchangeable senior debentures and convertible notes using the fair value option. Changes in the fair value of the exchangeable senior debentures and 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 loss of $4 million, loss of $107 million and gain of $148 million for the years ended December 31, 2022, 2021 and 2020, respectively, and the cumulative change was a gain of $64 million as of December 31, 2022.
(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.