Quarterly report pursuant to Section 13 or 15(d)

Assets And Liabilities Measured At Fair Value

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Assets And Liabilities Measured At Fair Value
 3 Months Ended
Mar. 31, 2012
Assets And Liabilities Measured At Fair Value  
Assets And Liabilities Measured At Fair Value
Assets and Liabilities Measured at Fair Value
For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.
Liberty's assets and liabilities measured at fair value are as follows:
 
 
 
Fair Value Measurements at March 31, 2012
Description
Total
 
Quoted prices
in active markets
for identical assets
(Level 1)
 
Significant other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
 
 
amounts in millions
Short term marketable securities
$
319

 
—

 
319

 
—

Available-for-sale securities
$
1,822

 
1,526

 
296

 
—

Financial instruments (1)
$
216

 
220

 
(4
)
 
—


(1)
Included within financial instruments are forward purchase options on marketable securities and related deposits. The Company may settle these options either through physical cash exercise or net unwind of the contracts.
The majority of Liberty's Level 2 financial assets and liabilities are primarily debt instruments with quoted market prices which are not considered to be traded on "active markets," as defined in GAAP. Accordingly, the financial instruments are reported in the foregoing table as Level 2 fair value.
Realized and Unrealized Gains (Losses) on Financial Instruments
Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following:
 
Three months ended March 31,
 
2012
 
2011
 
amounts in millions
Non-strategic Securities
$
73

 
300

Borrowed shares
—

 
(95
)
    Net change from Non-strategic securities
73

 
205

Exchangeable senior debentures
—

 
(86
)
Other
40

 
3

 
$
113

 
122