Quarterly report pursuant to Section 13 or 15(d)

Assets And Liabilities Measured At Fair Value

v2.4.0.8
Assets And Liabilities Measured At Fair Value
 3 Months Ended
Mar. 31, 2014
Fair Value Disclosures [Abstract]  
Assets And Liabilities Measured At Fair Value
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:
 
Fair Value Measurements at
March 31, 2014
 
Fair Value Measurements at
December 31, 2013
Description
Total
 
Quoted prices
in active markets
for identical assets
(Level 1)
 
Significant other
observable
inputs
(Level 2)
 
Total
 
Quoted prices
in active markets
for identical assets
(Level 1)
 
Significant other
observable
inputs
(Level 2)
 
amounts in millions
Cash equivalents
$
175

 
175

 
—

 
859

 
859

 
—

Available-for-sale securities
$
1,268

 
953

 
315

 
1,293

 
978

 
315

Financial instrument assets
$
289

 
—

 
289

 
397

 
—

 
397

Debt
$
942

 
—

 
942

 
1,002

 
—

 
1,002


The majority of Liberty's Level 2 financial assets are primarily investments in debt related instruments and certain derivative instruments. The Company notes that 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. Accordingly, those Available-for-Sale securities and debt related instruments are reported in the foregoing table as Level 2 fair value.
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:
 
Three months ended
March 31,
 
2014
 
2013
 
amounts in millions
Fair Value Option Securities
(15
)
 
82

Cash convertible notes (a)
59

 
—

Other derivatives (b)
(109
)
 
15

 
(65
)
 
97



(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.

(b)
Derivatives, including the Charter warrants (as discussed in note 6) and the bond hedge (as discussed in note 8), are marked to market based on the trading price of underlying securities and other observable market data as the significant inputs (Level 2).