Annual report pursuant to Section 13 and 15(d)

Assets And Liabilities Measured At Fair Value (Tables)

v3.22.0.1
Assets And Liabilities Measured At Fair Value (Tables)
12 Months Ended
Dec. 31, 2021
Assets and Liabilities Measured at Fair Value

December 31, 2021

December 31, 2020

 

    

    

Quoted prices

    

Significant other

    

    

Quoted prices

    

Significant other

 

in active markets

observable

in active markets

observable

 

for identical assets

inputs

for identical assets

inputs

 

Description

Total

(Level 1)

(Level 2)

Total

(Level 1)

(Level 2)

 

amounts in millions

 

Cash equivalents

    

$

2,436

    

2,436

    

    

2,586

    

2,586

    

  

Short-term marketable securities

$

70

70

    

    

    

Investment in trust account

$

575

575

Debt and equity securities

$

217

    

217

    

 

266

    

181

    

85

Financial instrument assets

$

640

    

99

    

541

 

424

    

84

    

340

Debt

$

5,222

    

    

5,222

 

4,545

    

    

4,545

Financial instrument liabilities

$

59

    

20

    

39

 

106

    

    

106

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):

Years ended December 31,

 

    

2021

    

2020

    

2019

 

Debt and equity securities

$

204

 

(74)

 

110

Debt measured at fair value (a)

 

(886)

 

(114)

 

(584)

Change in fair value of bond hedges (b)

193

(127)

215

Other

 

38

 

(87)

 

(56)

$

(451)

 

(402)

 

(315)

(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 loss of $107 million, gain of $148 million and loss of $16 million for the years ended December 31, 2021, 2020 and 2019, respectively, and the cumulative change was a gain of $68 million as of December 31, 2021.
(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 9 for additional discussion of the convertible notes and the bond hedges.