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FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 30, 2024
FAIR VALUE MEASUREMENTS:  
Schedule of Carrying Value and Fair Value of Notes and Debentures
The following table sets forth the face value and fair value of our financial assets and liabilities for the periods presented (in millions):
 As of September 30, 2024As of December 31, 2023
 Face ValueFair ValueFace ValueFair Value
Level 1:
Investments in equity securitiesN/A$20 N/A$6 
Money market fundsN/A$381 N/A$588 
Deferred compensation assetsN/A$47 N/A$45 
Deferred compensation liabilitiesN/A$46 N/A$44 
Level 2:
Investments in equity securities (a)N/A$136 N/A$110 
Interest rate swap (b)N/A$3 N/A$1 
STG (c):
5.500% Senior Notes due 2030
$485 $350 $485 $362 
5.125% Senior Notes due 2027
$274 $238 $274 $248 
4.125% Senior Secured Notes due 2030
$737 $574 $737 $521 
Term Loan B-2, due September 30, 2026$1,178 $1,116 $1,215 $1,124 
Term Loan B-3, due April 1, 2028$716 $530 $722 $595 
Term Loan B-4, due April 21, 2029$733 $543 $739 $602 
Debt of variable interest entities (c)$7 $7 $7 $7 
Debt of non-media subsidiaries (c)$— $— $15 $15 
Level 3:
Investments in equity securities (d)N/A$58 N/A$46 
N/A - Not applicable
(a)Consists of 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.
(b)We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. The fair value of the interest rate swap was a liability as of September 30, 2024 and an asset as of December 31, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.
(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 $38 million and $46 million as of September 30, 2024 and December 31, 2023, respectively.
(d)Amounts primarily relate to warrants and options to acquire common equity in Bally's. We recorded fair value adjustment gains of $18 million and $10 million for the three and nine months ended September 30, 2024, respectively, and losses of $10 million and $27 million for the three and nine months ended September 30, 2023, respectively. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. 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 and the exercise price of the options, which range from $30 to $45 per share.
Sinclair Broadcast Group, LLC  
FAIR VALUE MEASUREMENTS:  
Schedule of Carrying Value and Fair Value of Notes and Debentures
The following table sets forth the face value and fair value of SBG's financial assets and liabilities for the periods presented (in millions):
 As of September 30, 2024As of December 31, 2023
 Face ValueFair ValueFace ValueFair Value
Level 1:
Money market fundsN/A$116 N/A$309 
Level 2:
Interest rate swap (a)N/A$3 N/A$1 
STG (b):
5.500% Senior Notes due 2030
$485 $350 $485 $362 
5.125% Senior Notes due 2027
$274 $238 $274 $248 
4.125% Senior Secured Notes due 2030
$737 $574 $737 $521 
Term Loan B-2, due September 30, 2026$1,178 $1,116 $1,215 $1,124 
Term Loan B-3, due April 1, 2028$716 $530 $722 $595 
Term Loan B-4, due April 21, 2029$733 $543 $739 $602 
Debt of variable interest entities (b)$7 $7 $7 $7 
N/A - Not applicable

(a)SBG entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of SBG's exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and SBG receives a floating rate of interest based on SOFR. The fair value of the interest rate swap was a liability as of September 30, 2024 and an asset as of December 31, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.
(b)Amounts are carried in SBG's consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $38 million and $46 million as of September 30, 2024 and December 31, 2023, respectively.