Quarterly report [Sections 13 or 15(d)]

Assets and Liabilities Measured at Fair Value

v3.26.1
Assets and Liabilities Measured at Fair Value
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value
(4) 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.
The Company measures the fair value of money market funds based on quoted prices in “active markets” for identical assets. Money market funds are included as cash equivalents Level 1 fair value instruments in the table below. The Company's Level 2 financial liabilities are debt instruments with quoted market prices that are not considered to be traded on “active markets,” as defined in GAAP. The fair values for such instruments are derived from a typical model using observable market data as the significant inputs. Accordingly, these financial instruments are reported in the below table as Level 2 fair value instruments.
The Company's assets and liabilities measured at fair value on a recurring basis are as follows:
Fair Value Measurements at
March 31, 2026		 Fair Value Measurements at
December 31, 2025
Description Total Quoted
prices
in active
markets for
identical
assets
(Level 1)		 Significant
other
observable
inputs
(Level 2)		 Total Quoted
prices
in active
markets for
identical
assets
(Level 1)		 Significant
other
observable
inputs
(Level 2)
amounts in millions
Cash equivalents $ 238  238  —  816  816  — 
Debt $ 36  —  36  52  —  52 
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,
2026 2025
amounts in millions
Equity securities $ (6) — 
Exchangeable senior debentures 85  (15)
$ 79  (15)
The Company has elected to account for its exchangeable debt using the fair value option. Changes in the fair value of the exchangeable senior debentures recognized in the condensed consolidated statement of operations are primarily due to market factors largely driven by changes in the fair value of the underlying shares into which the debt is exchangeable.
The Company isolates the portion of the unrealized gain (loss) attributable to the change in the instrument specific credit risk and recognizes such amount in other comprehensive earnings (loss). The change in the fair value of the exchangeable senior debentures attributable to changes in the instrument specific credit risk were gains of $17 million and $53 million, net of the recognition of previously unrecognized gains and losses, for the three months ended March 31, 2026 and 2025, respectively.
During the first quarter of 2026, certain holders of the 4.00% and 3.75% Exchangeable Senior Debentures exchanged their debentures for cash in an amount equal to the current market price of the shares underlying their debentures. As a result of the exchanges, the Company settled a total of $59 million and $3 million in principal and carrying value, respectively, relating to the 4.00% Exchangeable Senior Debentures, and a total of $14 million and $1 million in principal and carrying value, respectively, relating to the 3.75% Exchangeable Senior Debentures. During the three months ended March 31, 2026, the Company recognized $62 million and $13 million of previously unrecognized gains related to the retirement of a portion of the 4.00% and 3.75% Exchangeable Debentures, respectively, in realized and unrealized gains
(losses) on financial instruments, net on the condensed consolidated statement of operations. The cumulative change was a gain of $697 million and $772 million as of March 31, 2026 and December 31, 2025, net of the recognition of previously unrecognized gains and losses, respectively.