jvidÊÓƵ

Quarterly report pursuant to Section 13 or 15(d)

Assets and Liabilities Measured at Fair Value (Tables)

v3.23.2
Assets and Liabilities Measured at Fair Value (Tables)
6 Months Ended
Jun. 30, 2023
Assets and Liabilities Measured at Fair Value

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

¹ó²¹¾±°ùÌý³Õ²¹±ô³Ü±ðÌý²Ñ±ð²¹²õ³Ü°ù±ð³¾±ð²Ô³Ù²õÌý²¹³Ù

​

¹ó²¹¾±°ùÌý³Õ²¹±ô³Ü±ðÌý²Ñ±ð²¹²õ³Ü°ù±ð³¾±ð²Ô³Ù²õÌý²¹³Ù

​

​

​

June 30, 2023

​

December 31, 2022

​

​

ÌýÌýÌýÌý

​

​

ÌýÌýÌýÌý

Quoted

ÌýÌýÌýÌý

​

ÌýÌýÌýÌý

​

ÌýÌýÌýÌý

Quoted

ÌýÌýÌýÌý

​

ÌýÌý

​

​

​

​

​

prices

​

​

​

​

​

prices

​

​

​

​

​

​

​

​

¾±²ÔÌý²¹³¦³Ù¾±±¹±ð

​

Significant

​

​

​

¾±²ÔÌý²¹³¦³Ù¾±±¹±ð

​

Significant

​

​

​

​

​

​

markets

​

other

​

​

​

markets

​

other

​

​

​

​

​

​

´Ú´Ç°ùÌý¾±»å±ð²Ô³Ù¾±³¦²¹±ô

​

observable

​

​

​

´Ú´Ç°ùÌý¾±»å±ð²Ô³Ù¾±³¦²¹±ô

​

observable

​

​

​

​

​

​

assets

​

inputs

​

​

​

assets

​

inputs

​

Description

​

Total

​

(³¢±ð±¹±ð±ôÌý1)

​

(³¢±ð±¹±ð±ôÌý2)

​

Total

​

(³¢±ð±¹±ð±ôÌý1)

​

(³¢±ð±¹±ð±ôÌý2)

​

​

​

²¹³¾´Ç³Ü²Ô³Ù²õÌý¾±²ÔÌý³¾¾±±ô±ô¾±´Ç²Ô²õ

​

Cash equivalents

​

$

1,502

Ìý

1,502

Ìý

—

Ìý

2,026

Ìý

2,026

Ìý

—

​

Debt and equity securities

​

$

148

Ìý

148

Ìý

—

Ìý

80

Ìý

80

Ìý

—

​

Financial instrument assets

​

$

230

Ìý

114

Ìý

116

Ìý

393

Ìý

86

Ìý

307

​

Debt

​

$

2,951

Ìý

—

Ìý

2,951

Ìý

3,331

Ìý

—

Ìý

3,331

​

Realized and Unrealized Gains (Losses) on Financial Instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended

​

Six months ended

​

​

​

June 30,

​

June 30,

​

​

ÌýÌýÌýÌý

2023

ÌýÌýÌýÌý

2022

ÌýÌýÌýÌý

2023

ÌýÌýÌýÌý

2022

Ìý

​

​

²¹³¾´Ç³Ü²Ô³Ù²õÌý¾±²ÔÌý³¾¾±±ô±ô¾±´Ç²Ô²õ

​

Debt and equity securities

​

$

10

Ìý

(7)

Ìý

16

Ìý

(12)

​

Debt measured at fair value (a)

​

​

(160)

​

577

​

(105)

​

646

​

Change in fair value of bond hedges (b)

​

​

11

​

(201)

​

(99)

​

(269)

​

Other

​

Ìý

43

Ìý

11

Ìý

46

Ìý

74

​

​

​

$

(96)

Ìý

380

Ìý

(142)

Ìý

439

​

(a) The Company elected to account for its exchangeable senior debentures and convertible notes (as described in note 7) using the fair value option. Changes in the fair value of the exchangeable senior debentures and convertible notes recognized in the condensed 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 convertible notes attributable to changes in the instrument specific credit risk was a loss of $23 million and gain of $52 million for the three months ended June 30, 2023 and 2022, respectively, and a loss of $30 million and a gain of $41 million for the six months ended June 30, 2023 and 2022, respectively. During the three and six months ended June 30, 2023, the Company recognized $18 million and $43 million, respectively, of previously unrecognized gains related to the retirement of the 1% Convertible Notes (defined below), the 2.125% Exchangeable Senior Debentures due 2048 and a portion of the Convertible Notes, which was recognized through other, net in the condensed consolidated statements of operations. The cumulative change since issuance was a loss of $9 million as of June 30, 2023, net of the recognition of previously unrecognized gains and losses.
(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 Series A Liberty SiriusXM, Liberty Braves and Liberty Formula One securities and other observable market data as the significant inputs (Level 2). See note 7 for additional discussion of the bond hedges.