Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments and Fair Value Measurements

v3.24.3
Financial Instruments and Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
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 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 2067 Notes (ticker: QVCD) and the 2068 Notes (ticker: QVCC) are traded on the New York Stock Exchange, which the Company considers to be an "active market," as defined by U.S. GAAP. Therefore, these Notes are measured based on quoted prices in an active market and included as Level 1 fair value instruments in the table below. The remainder of the Company's debt instruments and derivative instruments are considered Level 2 fair value instruments and measured based on quoted market prices that are not considered to be traded on "active markets." Accordingly, these financial instruments are reported in the below tables as Level 2 fair value instruments.
The Company's assets and liabilities measured or disclosed at fair value were as follows:
Fair value measurements at September 30, 2024 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 $ 99  99  —  — 
Current liabilities:
     Debt (note 4) 583  —  583  — 
Long-term liabilities:
Debt (note 4) 2,705  380  2,325  — 
Fair value measurements at December 31, 2023 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 $ 41  41  —  — 
Current liabilities:
Debt (note 4) 420  —  420  — 
Long-term liabilities:
Debt (note 4) 2,950  328  2,622  — 
Foreign Currency Forward Contracts
On October 31, 2022, the Company entered into foreign currency forward contracts with an aggregate notional amount of $167 million to mitigate the foreign currency risk associated with the sale-leaseback of Germany and U.K. properties. The forwards did not qualify as a cash flow hedge under U.S. GAAP. Changes in the fair value of the forwards are reflected in losses on financial instruments in the condensed consolidated statements of operations. The contract expired in January 2023 which resulted in a net cash settlement of $12 million.