Assets and Liabilities Measured at Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Assets and Liabilities Measured at Fair Value

	Fair Value Measurements at				Fair Value Measurements at
	September 30, 2022				December 31, 2021
			Quoted			Quoted
			prices			prices
			in active	Significant		in active	Significant
			markets	other		markets	other
			for identical	observable		for identical	observable
			assets	inputs		assets	inputs
Description	Total		(Level 1)	(Level 2)	Total	(Level 1)	(Level 2)
	amounts in millions
Cash equivalents	$	2,348	2,348	—	2,436	2,436	—
Investment in trust account	$	578	578	—	575	575	—
Debt and equity securities	$	108	108	—	217	217	—
Financial instrument assets	$	380	81	299	640	99	541
Debt	$	3,351	—	3,351	5,222	—	5,222
Financial instrument liabilities	$	—	—	—	59	20	39

Realized and Unrealized Gains (Losses) on Financial Instruments

	Three months ended			Nine months ended
	September 30,			September 30,
	2022		2021	2022	2021
	amounts in millions
Debt and equity securities	$	2	(6)	(10)	210
Debt measured at fair value (a)		45	(57)	691	(241)
Change in fair value of bond hedges (b)		21	18	(248)	77
Other		38	5	112	20
	$	106	(40)	545	66

(a) The Company elected to account for its exchangeable senior debentures and convertible notes (as described in note 8) 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 was a loss of $41 million and a loss of $46 million for the three months ended September 30, 2022 and 2021, respectively, and zero net impact and a loss of $114 million for the nine months ended September 30, 2022 and 2021, respectively, and the cumulative change since issuance was a gain of $68 million as of September 30, 2022, net of the recognition of previously unrecognized gains and losses.

(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 Series A Liberty SiriusXM, Liberty Braves and Liberty Formula One securities and other observable market data as the significant inputs (Level 2). See note 8 for additional discussion of the bond hedges.