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Quarterly report pursuant to Section 13 or 15(d)

Assets And Liabilities Measured At Fair Value (Tables)

v3.4.0.3
Assets And Liabilities Measured At Fair Value (Tables)
3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract] Ìý
Assets and Liabilities Measured at Fair Value

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FairÌýValueÌýMeasurementsÌýat

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FairÌýValueÌýMeasurementsÌýat

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March 31, 2016

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December 31, 2015

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ÌýÌýÌýÌý

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Quoted

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Quoted

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prices

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prices

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inÌýactive

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Significant

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inÌýactive

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Significant

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markets

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other

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markets

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other

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forÌýidentical

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observable

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forÌýidentical

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observable

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assets

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inputs

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assets

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inputs

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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)

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amountsÌýinÌýmillions

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Cash equivalents

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$

441

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441

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68

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68

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Short term marketable securities

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$

61

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61

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15

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15

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Available-for-sale securities

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$

497

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451

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46

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474

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425

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49

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Financial instrument assets

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$

204

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Ìý—

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204

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232

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Ìý—

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232

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Debt

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$

998

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Ìý—

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998

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995

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995

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Realized and Unrealized Gains (Losses) on Financial Instruments

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Three months endedÌý

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March 31,

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2016

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2015

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amountsÌýinÌýmillions

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Fair Value Option Securities

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$

24

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(31)

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Cash convertible notes (a)

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(3)

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Ìý—

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Change in fair value of bond hedges (a)

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(28)

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8

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Other derivatives (b)

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(1)

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(5)

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$

(8)

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(28)

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(a)

Liberty issued $1 billion of cash convertible notes in October 2013 which are accounted for at fair value (Level 2), as elected by Liberty at the issuance of the notes. 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 securities and other observable market data as the significant inputs (Level 2). See note 9 for additional discussion of the convertible notes and the bond hedges.Ìý

Derivatives are marked to market based on the trading price of underlying securities and other observable market data as the significant inputs (Level 2). During September 2014, Liberty entered into a forward contract to acquire up to 15.9 million shares of Live Nation common stock. Prior to the contract’s original expiration during March 2015, the Company extended the contract through October 15, 2015 with the expiration to occur on the sixtieth day following the completion of the counterparty’s initial hedge, which was November 27, 2015 and settlement occurred on December 2, 2015. The counterparty acquired the maximum number of Live Nation shares of common stock at a volume weighted average share price of $24.93 per share during September 2015. Liberty settled the contract for $396 million paid to the counterparty.