Quarterly report [Sections 13 or 15(d)]

Assets and Liabilities Measured at Fair Value

v3.26.3
Assets and Liabilities Measured at Fair Value
 9 Months Ended
Sep. 30, 2026
Assets and Liabilities Measured at Fair Value  
Assets and Liabilities Measured at Fair Value

(6)   Assets and Liabilities Measured at Fair Value

For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Liberty does not have any assets or liabilities required to be measured at fair value considered to be Level 3.

Liberty's assets and liabilities measured at fair value are as follows:

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September 30, 2026

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December 31, 2025

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Quoted prices

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Significant

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Quoted prices

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Significant

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in active

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other

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in active

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other

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markets for

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observable

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markets for

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observable

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identical assets

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inputs

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identical assets

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inputs

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Total

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(Level 1)

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(Level 2)

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Total

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(Level 1)

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(Level 2)

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amounts in millions

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Cash equivalents

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$

1,426

 

1,401

 

25

 

783

 

783

 

—

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Short term investments

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$

581

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—

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581

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—

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—

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—

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Financial instrument assets

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$

299

 

117

 

182

 

122

 

109

 

13

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Debt

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$

1,204

 

—

 

1,204

 

597

 

—

 

597

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Liberty’s Level 2 cash equivalents and short term investments are interest-bearing time deposits. These assets are not considered to be traded on “active markets,” as defined in GAAP.

Liberty's Level 2 financial instruments are derivative instruments, which include interest rate swaps and capped calls, as described in note 7. These assets are not always traded publicly or not considered to be traded on "active markets," as defined in GAAP. The fair values for such instruments are derived from a typical model using observable market data as the significant inputs or a trading price of a similar asset is utilized. Accordingly, those financial instruments are reported in the foregoing table as Level 2 fair value. As of September 30, 2026, $83 million and $99 million of financial instrument assets in the table above are included in the prepaid and other current assets and other assets line items, respectively, in the condensed consolidated balance sheet. As of December 31, 2025, financial instrument assets in the table above are included in the other assets line item in the condensed consolidated balance sheet.

Realized and Unrealized Gains (Losses) on Financial Instruments, net

Realized and unrealized gains (losses) on financial instruments, net is comprised of changes in the fair value of the following:

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Three months ended

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Nine months ended

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September 30,

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September 30,

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2026

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2025

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2026

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2025

 

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amounts in millions

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Debt measured at fair value (a)

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$

49

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5

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60

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(39)

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Foreign currency forward contracts

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1

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—

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(2)

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335

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Interest rate swaps

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56

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4

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98

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(49)

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Capped calls

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(39)

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—

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(39)

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—

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Other

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(1)

 

7

 

5

 

4

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$

66

 

16

 

122

 

251

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(a) The Company elected to account for its convertible notes (as described in note 7) using the fair value option. Changes in the fair value of the convertible notes recognized in the condensed consolidated statements of operations are due to market factors primarily driven by changes in the fair value of the underlying shares into which the debt is convertible. 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 convertible notes attributable to changes in the instrument specific credit risk was a gain of $14 million and gain of $3 million for the three months ended September 30, 2026 and 2025, respectively, and a gain of $14 million and a loss of $2 million for the nine months ended September 30, 2026 and 2025, respectively. The cumulative change since issuance was a gain of $79 million as of September 30, 2026, net of the recognition of previously unrecognized gains and losses.