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Annual report pursuant to Section 13 and 15(d)

Assets and Liabilities Measured at Fair Value (Tables)

v3.24.0.1
Assets and Liabilities Measured at Fair Value (Tables)
12 Months Ended
Dec. 31, 2023
Assets and Liabilities Measured at Fair Value Ìý
Assets and Liabilities Measured at Fair Value

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DecemberÌý31,Ìý2023

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DecemberÌý31,Ìý2022

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

$

1,142

ÌýÌýÌýÌý

1,142

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

2,026

ÌýÌýÌýÌý

2,026

ÌýÌýÌýÌý

—

ÌýÌý

Debt and equity securities

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$

113

ÌýÌýÌýÌý

113

ÌýÌýÌýÌý

—

Ìý

80

ÌýÌýÌýÌý

80

ÌýÌýÌýÌý

—

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Financial instrument assets

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$

141

ÌýÌýÌýÌý

117

ÌýÌýÌýÌý

24

Ìý

393

ÌýÌýÌýÌý

86

ÌýÌýÌýÌý

307

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Debt

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$

3,059

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

3,059

Ìý

3,331

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

3,331

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Financial instrument liabilities

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$

13

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—

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13

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—

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—

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—

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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

2023

ÌýÌýÌýÌý

2022

ÌýÌýÌýÌý

2021

Ìý

Debt and equity securities

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$

12

Ìý

(7)

Ìý

204

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Debt measured at fair value (a)

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Ìý

(259)

Ìý

717

Ìý

(886)

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Change in fair value of bond hedges (b)

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(114)

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(236)

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193

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Other

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Ìý

38

Ìý

125

Ìý

38

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$

(323)

Ìý

599

Ìý

(451)

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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 gain of $18 million, loss of $4 million and loss of $107 million for the years ended December 31, 2023, 2022 and 2021, respectively. During the year ended December 31, 2023, the Company recognized $18 million of previously unrecognized gains related to the retirement of the 1% Convertible Notes (defined below), the 2.125% Exchangeable Senior Debentures due 2048, the Convertible Notes and the 0.5% Exchangeable Senior Debentures due 2050, which was recognized through other, net in the consolidated statements of operations. The cumulative change since issuance was a gain of $64 million as of December 31, 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 were 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 were marked to market based on the trading price of underlying securities and other observable market data as the significant inputs (LevelÌý2). See noteÌý9 for additional discussion of the Convertible Notes and the bond hedges.