Quarterly report pursuant to Section 13 or 15(d)

Assets And Liabilities Measured At Fair Value (Tables)

v3.5.0.2
Assets And Liabilities Measured At Fair Value (Tables)
9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

Fair Value Measurements at

 

 

 

September 30, 2016

 

December 31, 2015

 

 

    

 

 

    

Quoted

    

 

    

 

    

Quoted

    

 

  

 

 

 

 

 

prices

 

 

 

 

 

prices

 

 

 

 

 

 

 

 

in active

 

Significant

 

 

 

in active

 

Significant

 

 

 

 

 

 

markets

 

other

 

 

 

markets

 

other

 

 

 

 

 

 

for identical

 

observable

 

 

 

for identical

 

observable

 

 

 

 

 

 

assets

 

inputs

 

 

 

assets

 

inputs

 

Description

 

Total

 

(Level 1)

 

(Level 2)

 

Total

 

(Level 1)

 

(Level 2)

 

 

 

amounts in millions

 

Cash equivalents

 

$

317

 

317

 

 —

 

68

 

68

 

 —

 

Short term marketable securities

 

$

 —

 

 —

 

 —

 

15

 

15

 

 —

 

Available-for-sale securities

 

$

444

 

420

 

24

 

474

 

425

 

49

 

Financial instrument assets

 

$

233

 

 —

 

233

 

232

 

 —

 

232

 

Debt

 

$

1,510

 

 —

 

1,510

 

995

 

 —

 

995

 

 

Realized and Unrealized Gains (Losses) on Financial Instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

    

2016

    

2015

    

2016

    

2015

 

 

 

amounts in millions

 

Fair Value Option Securities

 

$

14

 

(117)

 

43

 

(139)

 

Exchangeable senior debentures (note 9)

 

 

(23)

 

 —

 

(23)

 

 —

 

Cash convertible notes (a)

 

 

(53)

 

(19)

 

(52)

 

30

 

Change in fair value of bond hedges (a)

 

 

69

 

(9)

 

1

 

(47)

 

Other derivatives (b)

 

 

 —

 

(55)

 

(2)

 

(32)

 

 

 

$

7

 

(200)

 

(33)

 

(188)

 


(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. 

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 $24.91 per share during September 2015. Liberty settled the contract for $396 million paid to the counterparty.