Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments and Fair Value Measurements

v3.20.1
Financial Instruments and Fair Value Measurements
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair value disclosures
Financial Instruments and Fair Value Measurements
For assets and liabilities required to be reported or disclosed at fair value, U.S. 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, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.
The Company's assets and liabilities measured or disclosed at fair value were as follows:
 
 
Fair value measurements at March 31, 2020 using
 
(in millions)
Total

Quoted prices
in active
markets for
identical
assets
(Level 1)

Significant
other
observable
inputs
(Level 2)

Significant
unobservable
inputs
(Level 3)

Current assets:
 
 
 
 
    Cash equivalents
$
242

242

—

—

Long-term liabilities:
 
 
 
 
Long-term debt excluding finance lease obligations (note 5)
4,068

530

3,538

—

Interest rate swap arrangements (note 5)
4

—

4

—



Fair value measurements at December 31, 2019 using
 
(in millions)
Total

Quoted prices
in active
markets for
identical
assets
(Level 1)

Significant
other
observable
inputs
(Level 2)

Significant
unobservable
inputs
(Level 3)

Current assets:
 
 
 
 
    Cash equivalents
$
272

272

—

—

    Interest rate swap arrangements (note 5)
—

—

—

—

Long-term liabilities:
 
 
 
 
Long-term debt excluding finance lease obligations (note 5)
5,116

760

4,356

—

Interest rate swap arrangements (note 5)
—

—

—

—


The 2067 Notes (ticker: QVCD) and the 2068 Notes (ticker: QVCC) are considered Level 1 fair value instruments as reported in the foregoing tables as they are traded on the New York Stock Exchange, which the Company considers to be an "active market," as defined by U.S. GAAP. The remainder of the Company's Level 2 financial liabilities are debt instruments with quoted market prices that are not considered to be traded on "active markets." Accordingly, these financial instruments are reported in the foregoing tables as Level 2 fair value instruments.