Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Values of Derivative Instrument Assets and Liabilities

The following table provides details of the fair values of our derivative instrument assets and liabilities:

	March 31, 2024						December 31, 2023
	Current		Long-term		Total		Current		Long-term		Total
	in millions
Assets (a):
Cross-currency and interest rate derivative contracts (b)	$	515.1	$	456.9	$	972.0	$	515.6	$	427.5	$	943.1
Equity-related derivative instruments (c)	—		304.5		304.5		—		310.7		310.7
Foreign currency forward and option contracts	10.2		0.6		10.8		2.3		0.6		2.9
Other	0.2		—		0.2		0.2		—		0.2
Total	$	525.5	$	762.0	$	1,287.5	$	518.1	$	738.8	$	1,256.9
Liabilities (a):
Cross-currency and interest rate derivative contracts (b)	$	220.4	$	581.8	$	802.2	$	369.9	$	948.5	$	1,318.4
Equity-related derivative instruments (c)	90.7		—		90.7		47.4		—		47.4
Foreign currency forward and option contracts	6.5		2.5		9.0		9.5		4.5		14.0
Total	$	317.6	$	584.3	$	901.9	$	426.8	$	953.0	$	1,379.8

_______________ 

(a)Our long-term derivative assets and long-term derivative liabilities are included in other assets, net, and other long-term liabilities, respectively, on our condensed consolidated balance sheets.

(b)We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our subsidiary borrowing groups (as defined and described in note 8). The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in net losses of $48.8 million and $21.4 million during the three months ended March 31, 2024 and 2023, respectively. These amounts are included in realized and unrealized gains (losses) on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 6.

(c)Our equity-related derivative instruments include the Vodafone Collar. The fair value of the Vodafone Collar does not include credit risk valuation adjustments as we assume that any losses incurred by our company in the event of nonperformance by the respective counterparty would be, subject to relevant insolvency laws, fully offset against amounts we owe to such counterparty pursuant to the related secured borrowing arrangements.

Schedule Of Realized And Unrealized Gains On Derivative Instruments

The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows:

	Three months ended March 31,
	2024		2023
	in millions
Cross-currency and interest rate derivative contracts	$	598.1	$	(66.9)
Equity-related derivative instruments	(43.5)		31.7
Foreign currency forward and option contracts	10.7		0.8
Total	$	565.3	$	(34.4)

Schedule Of Cash Received Paid Related To Derivative Instruments Statement Of Cash Flows Location

The following table sets forth the classification of the net cash inflows (outflows) of our derivative instruments:

	Three months ended March 31,
	2024		2023
	in millions
Operating activities	$	58.1	$	56.0
Financing activities	(1.5)		(62.1)
Total	$	56.6	$	(6.1)

Schedule of Derivative Instruments

The following table sets forth the total notional amounts and the related weighted average remaining contractual lives of our cross-currency swap contracts at March 31, 2024:

	Notional amount due from counterparty		Notional amount due to counterparty			Weighted average remaining life
	in millions					in years
Sunrise Holding	$	250.0	€	220.6		1.5
	$	4,275.0	CHF	3,912.7	(a)	4.5
	€	1,952.6	CHF	2,176.5		3.0
Telenet	$	3,940.0	€	3,489.6	(a)	2.8
	€	45.2	$	50.0	(b)	0.8

_______________ 

(a)Includes certain derivative instruments that are “forward-starting,” such that the initial exchange occurs at a date subsequent to March 31, 2024. These instruments are typically entered into in order to extend existing hedges without the need to amend existing contracts.

(b)Includes certain derivative instruments that do not involve the exchange of notional amounts at the inception and maturity of the instruments. Accordingly, the only cash flows associated with these derivative instruments are coupon-related payments and receipts.

The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our interest rate swap contracts at March 31, 2024:

	Pays fixed rate				Receives fixed rate
	Notional amount			Weighted average remaining life	Notional amount		Weighted average remaining life
	in millions			in years	in millions		in years
Sunrise Holding	$	3,419.4	(a)	2.3	$	3,249.2	2.4
Telenet	$	3,650.7	(a)	4.2	$	291.5	0.8
Other (b)	$	—		—	$	25.9	1.5

_______________ 

(a)Includes forward-starting derivative instruments.

(b)    Represents contracts associated with our investment in a leveraged structured note. For additional information, see note 4.

The following table sets forth the total U.S. dollar equivalents of the notional amounts and related weighted average remaining contractual lives of our basis swap contracts at March 31, 2024:

	Notional amount due from counterparty		Weighted average remaining life
	in millions		in years
Sunrise Holding	$	3,597.1	0.5
Telenet	$	3,493.4	0.5
VM Ireland	$	971.7	0.8

The impact of the derivative instruments that mitigate our foreign currency and interest rate risk, as described above, on our borrowing costs is as follows:

	Decrease to borrowing costs at March 31, 2024 (a)
Sunrise Holding	(3.60)	%
VM Ireland	(3.56)	%
Telenet	(2.98)	%
Total decrease to borrowing costs	(3.32)	%

_______________  

(a)Represents the effect of derivative instruments in effect at March 31, 2024 and does not include forward-starting derivative instruments.