Â鶹×îгöÆ·

Quarterly report pursuant to Section 13 or 15(d)

Assets And Liabilities Measured At Fair Value (Tables)

v3.20.2
Assets And Liabilities Measured At Fair Value (Tables)
9 Months Ended
Sep. 30, 2020
Assets and Liabilities Measured at Fair Value

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¹ó²¹¾±°ùÌý³Õ²¹±ô³Ü±ðÌý²Ñ±ð²¹²õ³Ü°ù±ð³¾±ð²Ô³Ù²õÌý²¹³Ù

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September 30, 2020

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December 31, 2019

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ÌýÌýÌýÌý

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ÌýÌýÌýÌý

Quoted

ÌýÌýÌýÌý

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ÌýÌýÌýÌý

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ÌýÌýÌýÌý

Quoted

ÌýÌýÌýÌý

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ÌýÌý

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prices

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prices

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¾±²ÔÌý²¹³¦³Ù¾±±¹±ð

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Significant

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¾±²ÔÌý²¹³¦³Ù¾±±¹±ð

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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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´Ú´Ç°ùÌý¾±»å±ð²Ô³Ù¾±³¦²¹±ô

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observable

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´Ú´Ç°ùÌý¾±»å±ð²Ô³Ù¾±³¦²¹±ô

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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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(³¢±ð±¹±ð±ôÌý1)

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(³¢±ð±¹±ð±ôÌý2)

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Total

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(³¢±ð±¹±ð±ôÌý1)

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(³¢±ð±¹±ð±ôÌý2)

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Cash equivalents

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$

1,668

Ìý

1,668

Ìý

—

Ìý

992

Ìý

992

Ìý

—

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Debt and equity securities

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$

231

Ìý

178

Ìý

53

Ìý

353

Ìý

242

Ìý

111

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Financial instrument assets

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$

214

Ìý

31

Ìý

183

Ìý

498

Ìý

29

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469

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Debt

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$

3,237

Ìý

—

Ìý

3,237

Ìý

3,678

Ìý

—

Ìý

3,678

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Financial instrument liabilities

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$

121

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—

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121

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53

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—

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53

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Realized and Unrealized Gains (Losses) on Financial Instruments

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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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ÌýÌýÌýÌý

2020

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2020

ÌýÌýÌýÌý

2019

Ìý

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Debt and equity securities

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$

4

Ìý

18

Ìý

(109)

Ìý

89

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Debt measured at fair value (a)

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44

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(62)

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326

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(295)

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Change in fair value of bond hedges (b)

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(32)

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68

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(282)

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107

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Other derivatives

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Ìý

—

Ìý

(10)

Ìý

(98)

Ìý

(72)

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$

16

Ìý

14

Ìý

(163)

Ìý

(171)

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(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 condensed 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 $193 million and a loss of $29 million for the three months ended September 30, 2020 and 2019,
respectively, and a gain of $109 million and a loss of $33 million for the nine months ended September 30, 2020 and 2019, respectively, and the cumulative change was a gain of $136 million as of September 30, 2020.
(b) Contemporaneously with the issuance of the Convertible Notes, Â鶹×îгöÆ· entered into privately negotiated cash convertible note hedges, which are expected to offset potential cash payments Â鶹×îгöÆ· 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 Â鶹×îгöÆ· SiriusXM, Â鶹×îгöÆ· Braves and Â鶹×îгöÆ· Formula One securities and other observable market data as the significant inputs (Level 2). See note 9 for additional discussion of the bond hedges.