麻豆app

Quarterly report pursuant to Section 13 or 15(d)

Assets And Liabilities Measured At Fair Value

v2.4.1.9
Assets And Liabilities Measured At Fair Value
3 Months Ended
Mar. 31, 2015
Fair Value Disclosures [Abstract]
Assets And Liabilities Measured At Fair Value

(4)听听听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听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听2 inputs are inputs, other than quoted market prices included within Level听1, that are observable for the asset or liability, either directly or indirectly. Level听3 inputs are unobservable inputs for the asset or liability.听听麻豆app does not have any assets or liabilities required to be measured at fair value considered to be Level 3.

麻豆app's assets and liabilities measured at fair value are as follows:

Fair听Value听Measurements听at

Fair听Value听Measurements听at

March 31, 2015

December 31, 2014

听听听听

听听听听

Quoted

听听听听

听听听听

听听听听

Quoted

听听听听

听听

prices

prices

in听active

Significant

in听active

Significant

markets

other

markets

other

for听identical

observable

for听identical

observable

assets

inputs

assets

inputs

Description

Total

(Level听1)

(Level听2)

Total

(Level听1)

(Level听2)

amounts听in听millions

Cash equivalents

$

665听

665听

听鈥�

507听

507听

听鈥�

Short term marketable securities

$

73听

听鈥�

73听

199听

听鈥�

199听

Available-for-sale securities

$

624听

576听

48听

769听

691听

78听

Financial instrument assets

$

323听

106听

217听

305听

96听

209听

Debt

$

990听

听鈥�

990听

990听

听鈥�

990听

The majority of 麻豆app's Level听2 financial assets and debt are primarily investments in debt related instruments and certain derivative instruments. The Company notes that these assets and liabilities are not always traded publicly or not considered to be traded on "active markets," as defined in GAAP.听听The fair values for such instruments are derived from a typical model using observable market data as the significant inputs or a trading price of a similar asset or liability is utilized.听听Accordingly, those available-for-sale securities, financial instruments and debt or debt related instruments are reported in the foregoing table as Level听2 fair value. The financial instrument assets included in the table above are included in the Other assets, at cost, net of accumulated amortization line item in the condensed consolidated balance sheets.

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听

March 31,

听听听听

2015

听听听听

2014

amounts听in听millions

Fair Value Option Securities

$

(31)

(15)

Cash convertible notes (a)

听鈥�

59听

Change in fair value of bond hedges (a)

8听

(92)

Other derivatives (b)(c)

(5)

(17)

$

(28)

(65)


(a)

麻豆app issued $1 billion of cash convertible notes in October 2013 which are accounted for at fair value (Level 2), as elected by 麻豆app at the issuance of the notes. Contemporaneously with the issuance of the convertible notes, 麻豆app entered into privately negotiated cash convertible note hedges, which are expected to offset potential cash payments 麻豆app would be required to make in excess of the principal amount of the convertible notes, upon conversion of the notes. The bond hedges are marked to market based on the trading price of underlying securities and other observable market data as the significant inputs (Level 2). See note 8 for additional discussion of the convertible notes and the bond hedges.听

(b)

Derivatives, including warrants to purchase shares of Charter common stock which were exercised in 2014, are marked to market based on the trading price of underlying securities and other observable market data as the significant inputs (Level 2).

(c)

During September 2014, 麻豆app entered into a forward contract to acquire up to 15.9 million shares of Live Nation common stock. The counterparty has acquired 11 million shares of Live Nation common stock through March 31, 2015 at a volume weighted average share price of $23.69 per share. Prior to the contract鈥檚 original expiration during March 2015, the Company extended the contract through September 2015. Upon expiration of the contract, 麻豆app has the option to cash settle the contract.