Annual report pursuant to Section 13 and 15(d)

Assets And Liabilities Measured At Fair Value (Tables)

v3.6.0.2
Assets And Liabilities Measured At Fair Value (Tables)
 12 Months Ended
Dec. 31, 2016
Assets and Liabilities Measured at Fair Value  
Assets and Liabilities Measured at Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

December 31, 2015

 

 

    

 

 

    

Quoted prices

    

Significant other

    

 

    

Quoted prices

    

Significant other

 

 

 

 

 

 

in active markets

 

observable

 

 

 

in active markets

 

observable

 

 

 

 

 

 

for identical assets

 

inputs

 

 

 

for identical assets

 

inputs

 

Description

 

Total

 

(Level 1)

 

(Level 2)

 

Total

 

(Level 1)

 

(Level 2)

 

 

 

amounts in millions

 

Cash equivalents

    

$
289

    
289

    

 —

    
68

    
68

    

 —

  

Available-for-sale securities

 

$
489

    
489

    

 —

 
474

    
425

    
49

 

Financial instrument assets

 

$
286

    
16

    
270

 
232

    

 —

    
232

 

Debt

 

$
1,546

    

 —

    
1,546

 
995

    

 —

    
995

 

 

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 (amounts in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

    

2016

    

2015

    

2014

 

 

 

 

 

 

 

 

 

 

Fair Value Option Securities

 

$
112

 
(151)

 
80

 

Cash convertible notes (a)

 

 
(113)

 
(5)

 
12

 

Change in fair value of bond hedges (a)

 

 
37

 
23

 
(89)

 

Other derivatives (b)

 

 
1

 
(7)

 
35

 

 

 

$
37

 
(140)

 
38

 

(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 time of issuance. 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 10 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 expiration occurring on the sixtieth day following the completion of the counterparty’s initial hedge, which was November 27, 2015 and settlement occurring 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 $24.93 per share during September 2015. Liberty settled the contract for $396 million paid to the counterparty. During June 2016, Braves Holdings entered into two interest rate swap arrangements with a notional value of $50 million related to certain of its variable rate loans. The interest rate swaps are marked to market each period based on changes in the LIBOR rate. The interest rate swaps are scheduled to mature in June 2019.