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Annual report pursuant to Section 13 and 15(d)

Assets And Liabilities Measured At Fair Value (Tables)

v3.22.0.1
Assets And Liabilities Measured At Fair Value (Tables)
12 Months Ended
Dec. 31, 2021
Assets and Liabilities Measured at Fair Value

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¶Ù±ð³¦±ð³¾²ú±ð°ùÌý31,Ìý2021

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¶Ù±ð³¦±ð³¾²ú±ð°ùÌý31,Ìý2020

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ÌýÌýÌýÌý

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ÌýÌýÌýÌý

QuotedÌýprices

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SignificantÌýother

ÌýÌýÌýÌý

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ÌýÌýÌýÌý

QuotedÌýprices

ÌýÌýÌýÌý

SignificantÌýother

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inÌýactiveÌýmarkets

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observable

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inÌýactiveÌýmarkets

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observable

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forÌýidenticalÌýassets

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inputs

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forÌýidenticalÌýassets

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inputs

Ìý

Description

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Total

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(LevelÌý1)

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(LevelÌý2)

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Total

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(LevelÌý1)

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(LevelÌý2)

Ìý

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amountsÌýinÌýmillions

Ìý

Cash equivalents

ÌýÌýÌýÌý

$

2,436

ÌýÌýÌýÌý

2,436

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

2,586

ÌýÌýÌýÌý

2,586

ÌýÌýÌýÌý

—

ÌýÌý

Short-term marketable securities

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$

70

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70

ÌýÌýÌýÌý

—

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—

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

—

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Investment in trust account

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$

575

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575

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—

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—

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—

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—

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Debt and equity securities

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$

217

ÌýÌýÌýÌý

217

ÌýÌýÌýÌý

—

Ìý

266

ÌýÌýÌýÌý

181

ÌýÌýÌýÌý

85

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Financial instrument assets

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$

640

ÌýÌýÌýÌý

99

ÌýÌýÌýÌý

541

Ìý

424

ÌýÌýÌýÌý

84

ÌýÌýÌýÌý

340

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Debt

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$

5,222

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

5,222

Ìý

4,545

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

4,545

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Financial instrument liabilities

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$

59

ÌýÌýÌýÌý

20

ÌýÌýÌýÌý

39

Ìý

106

ÌýÌýÌýÌý

—

ÌýÌýÌýÌý

106

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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):

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YearsÌýendedÌýDecemberÌý31,

Ìý

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ÌýÌýÌýÌý

2021

ÌýÌýÌýÌý

2020

ÌýÌýÌýÌý

2019

Ìý

Debt and equity securities

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$

204

Ìý

(74)

Ìý

110

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Debt measured at fair value (a)

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Ìý

(886)

Ìý

(114)

Ìý

(584)

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Change in fair value of bond hedges (b)

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193

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(127)

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215

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Other

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Ìý

38

Ìý

(87)

Ìý

(56)

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$

(451)

Ìý

(402)

Ìý

(315)

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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 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 $107 million, gain of $148 million and loss of $16 million for the years ended December 31, 2021, 2020 and 2019, respectively, and the cumulative change was a gain of $68 million as of December 31, 2021.
(b) 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 SeriesÌýA Liberty SiriusXM, Liberty Braves and Liberty Formula One securities and other observable market data as the significant inputs (LevelÌý2). See noteÌý9 for additional discussion of the convertible notes and the bond hedges.