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FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
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 June 30, 2022As of December 31, 2021
 Carrying ValueFair ValueCarrying ValueFair Value
Level 1:
Investments in equity securities$5 $5 $5 $5 
Deferred compensation assets40 40 48 48 
Deferred compensation liabilities33 33 38 38 
STG:
Money market funds326 326 265 265 
DSG (a):
Money market funds— — 101 101 
Level 2:
Investments in equity securities (b)59 59 114 114 
STG (c):
5.875% Senior Notes due 2026 (d)
— — 348 357 
5.500% Senior Notes due 2030
500 375 500 489 
5.125% Senior Notes due 2027 (e)
282 240 400 391 
4.125% Senior Secured Notes due 2030
750 595 750 712 
Term Loan B-1, due January 3, 2024 (d)— — 379 373 
Term Loan B-2, due September 30, 20261,264 1,150 1,271 1,239 
Term Loan B-3, due April 1, 2028733 674 736 722 
Term Loan B-4, due April 21, 2029 (d)750 690 — — 
DSG (a) (c):
12.750% Senior Secured Notes due 2026
— — 31 17 
6.625% Senior Unsecured Notes due 2027
— — 1,744 490 
5.375% Senior Secured Notes due 2026
— — 3,050 1,525 
Term Loan, due August 24, 2026— — 3,226 1,484 
Debt of variable interest entities (c)9 9 9 9 
Debt of non-media subsidiaries (c)17 17 17 17 
Level 3:
Investments in equity securities (f)152 152 282 282 
(a)The debt of DSG, a wholly-owned subsidiary of DSIH, was deconsolidated from our balance sheet as part of the Deconsolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.
(b)Consists of unrestricted warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.
(c)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 $60 million and $158 million as of June 30, 2022 and December 31, 2021, respectively.
(d)In April 2022, STG raised Term B-4 Loans in an aggregate principal amount of $750 million, the proceeds of which were used to refinance all of STG’s outstanding Term Loan B-1 due January 2024 and to redeem STG’s outstanding 5.875% senior notes due 2026. See Note 4. Notes Payable, Finance Leases, and Commercial Bank Financing.
(e)During three months ended June 30, 2022, we purchased $118 million aggregate principal amount of the STG 5.125% Notes in open market transactions for consideration of $104 million. The STG 5.125% Notes acquired during three months ended June 30, 2022 were canceled immediately following their acquisition. See Note 4. Notes Payable, Finance Leases, and Commercial Bank Financing.
(f)On November 18, 2020, we entered into a commercial agreement with Bally's Corporation ("Bally's") and received warrants and options to acquire common equity in the business. During the three and six months ended June 30, 2022 we recorded fair value adjustment losses of $74 million and $130 million, respectively, and during the three and six months ended June 30, 2021 we recorded a fair value adjustment loss of $51 million and a gain of $52 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity adjusted for a 12% and 16% discount for lack of marketability ("DLOM") as of June 30, 2022 and December 31, 2021, respectively. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock, the exercise price of the options, which range from $30 to $45 per share, and a DLOM of 12% and 16% as of June 30, 2022 and December 31, 2021, respectively. There are certain restrictions surrounding the sale and ownership of common stock and we have agreed not to sell any shares beneficially owned prior to the first anniversary of the agreement. We are also precluded from owning more than 4.9% of the outstanding common shares of Bally's, inclusive of shares obtained through the exercise of the warrants and options described above.
Schedule of Changes in Level 3 Financial Liabilities Measured on Recurring Basis
The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2022 and 2021 (in millions):
Options and Warrants
Three Months Ended June 30, 2022Six Months Ended June 30, 2022
Fair value at March 31, 2022$226 Fair value at December 31, 2021$282 
Measurement adjustments(74)Measurement adjustments(130)
Fair value at June 30, 2022$152 Fair value at June 30, 2022$152 
Options and Warrants
Three Months Ended June 30, 2021Six Months Ended June 30, 2021
Fair value at March 31, 2021$435 Fair value at December 31, 2020$332 
Measurement adjustments(51)Measurement adjustments52 
Fair value at June 30, 2021$384 Fair value at June 30, 2021$384