FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of carrying value and fair value of notes and debentures

The following table sets forth the carrying value and fair value of our financial assets and liabilities for the periods presented (in millions):



	As of September 30, 2020				As of December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Level 1:
STG:
Money market funds	$	239	$	239	$	354	$	354
Deferred compensation assets	37		37		36		36
Deferred compensation liabilities	32		32		33		33
DSG:
Money market funds	47		47		559		559

Level 2 (a):
STG:
5.875% Senior Unsecured Notes due 2026	348		342		350		368
5.625% Senior Unsecured Notes due 2024	550		547		550		566
5.500% Senior Unsecured Notes due 2030	500		464		500		511
5.125% Senior Unsecured Notes due 2027	400		373		400		411
Term Loan B	1,319		1,282		1,329		1,326
Term Loan B-2	1,287		1,252		1,297		1,300
DSG:
12.750% Senior Secured Notes due 2026 (b)	31		25		—		—
6.625% Senior Unsecured Notes due 2027 (b)	1,744		908		1,825		1,775
5.375% Senior Secured Notes due 2026	3,050		2,158		3,050		3,085
Term Loan	3,267		2,597		3,292		3,284
Accounts receivable securitization facility (c)	74		74		—		—
Debt of variable interest entities	18		18		21		21
Debt of non-media subsidiaries	18		18		18		18

Level 3
DSG:
Variable payment obligations (d)	64		64		239		239


(a)	Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $182 million and $231 million as of September 30, 2020 and December 31, 2019, respectively.


(b)	On June 10, 2020, we exchanged $66.5 million aggregate principal amount of the DSG 6.625% Notes for cash payments of $10 million, including accrued but unpaid interest, and $31 million aggregate principal amount of the newly issued DSG 12.750% Secured Notes. See Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further information.


(c)	We entered into the A/R Facility on September 23, 2020. As of September 30, 2020, the balance of the loans under the A/R Facility was $74 million. See Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further information.

(d)

The Company records its variable payment obligations at fair value on a recurring basis. These liabilities are further described in Other Liabilities within Note 5. Commitments and Contingencies. Significant unobservable inputs used in the fair value measurement are projected future operating income before depreciation and amortization; and weighted average discount rate of 10%. Significant increases (decreases) in projected future operating income would generally result in a significantly higher (lower) fair value measurement. Significant increases (decreases) in discount rates, would result in a significantly (lower) higher fair value measurement.

Schedule of changes in Level 3 financial liabilities measured on recurring basis

The following table summarizes the changes in financial liabilities measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and nine months ended September 30, 2020 (in millions):



	Variable Payment Obligations
Fair value at June 30, 2020	$	235
Payments	(6		)
Measurement adjustments	(165		)
Fair value at September 30, 2020	$	64

	Variable Payment Obligations
Fair value at December 31, 2019	$	239
Payments	(16		)
Measurement adjustments	(159		)
Fair value at September 30, 2020	$	64