Â鶹×îгöÆ·

Quarterly report pursuant to Section 13 or 15(d)

Assets and Liabilities Measured at Fair Value (Tables)

v3.23.1
Assets and Liabilities Measured at Fair Value (Tables)
3 Months Ended
Mar. 31, 2023
Assets and Liabilities Measured at Fair Value

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

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March 31, 2023

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December 31, 2022

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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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²¹³¾´Ç³Ü²Ô³Ù²õÌý¾±²ÔÌý³¾¾±±ô±ô¾±´Ç²Ô²õ

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Cash equivalents

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$

1,794

Ìý

1,794

Ìý

—

Ìý

2,026

Ìý

2,026

Ìý

—

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Debt and equity securities

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$

172

Ìý

172

Ìý

—

Ìý

80

Ìý

80

Ìý

—

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Financial instrument assets

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$

184

Ìý

91

Ìý

93

Ìý

393

Ìý

86

Ìý

307

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Debt

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$

3,043

Ìý

—

Ìý

3,043

Ìý

3,331

Ìý

—

Ìý

3,331

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Realized and Unrealized Gains (Losses) on Financial Instruments

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Three months ended

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March 31,

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ÌýÌýÌýÌý

2023

ÌýÌýÌýÌý

2022

Ìý

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²¹³¾´Ç³Ü²Ô³Ù²õÌý¾±²ÔÌý³¾¾±±ô±ô¾±´Ç²Ô²õ

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Debt and equity securities

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$

6

Ìý

(5)

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Debt measured at fair value (a)

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55

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69

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Change in fair value of bond hedges (b)

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(110)

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(68)

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Other

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Ìý

3

Ìý

63

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$

(46)

Ìý

59

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(a) The Company elected to account for its exchangeable senior debentures and convertible notes (as described in note 7) using the fair value option. Changes in the fair value of the exchangeable senior debentures and 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 convertible notes attributable to changes in the instrument specific credit risk were losses of $7 million and $11 million for the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, the Company recognized $25 million of previously unrecognized gains related to the retirement of the 1% Convertible Notes (defined below), a portion of the 2.125% Exchangeable Senior Debentures due 2048 and a portion of the Convertible Notes, which was recognized through other, net in the condensed consolidated statements of operations. The cumulative change since issuance was a gain of $32 million as of March 31, 2023, net of the recognition of previously unrecognized gains and losses.
(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 7 for additional discussion of the bond hedges.