v3.25.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value
Our assets and liabilities measured at fair value were as follows:
 March 31, 2025December 31, 2024
 Level 1Level 2Level 3Total Fair ValueLevel 1Level 2Level 3Total Fair Value
Cash equivalents
$18 $— $— $18 $1 $— $— $1 
Financial instruments(a)
$55 $— $— $55 $60 $— $— $60 
Debt (b)
$— $596 $— $596 $— $594 $— $594 
(a)Level 1 financial instrument assets are comprised of our deferred compensation plan assets. Refer to Note 13 for additional discussion.
(b)The fair values of the Convertible Notes are based on quoted market prices but are not considered to be traded on “active markets,” as defined by GAAP. Refer to Note 11 for additional discussion related to our debt.
Unrealized Gain (Loss) on Investments
Realized and unrealized gains (losses) on financial instruments, net, are comprised of changes in the fair value of the following and are included in Other income, net, on the unaudited consolidated statements of operations:
Three Months Ended March 31,
20252024
Debt measured at fair value (a)
(3)15 
Other
— 3 
Total
$(3)$18 
(a)We elected to account for the 2.75% exchangeable senior debentures due 2049 (which are no longer outstanding) that were assigned as part of the Transactions (the “Exchangeable Notes”) and Convertible Notes using the fair value option. The Exchangeable Notes and the Convertible Notes were the obligations of Sirius XM Holdings. Sirius XM was not an obligor or guarantor of either the Exchangeable Notes or the Convertible Notes. Changes in the fair value of the Exchangeable Notes and Convertible Notes recognized in the unaudited consolidated statements of operations are primarily due to market factors primarily driven by changes in the fair value of the underlying shares into which the debt is exchangeable or convertible. We isolate the portion of the unrealized gain (loss) attributable to changes in the instrument specific credit risk and recognize such amount in other comprehensive earnings (loss). The change in the fair value of the Exchangeable Notes and Convertible Notes attributable to changes in the instrument specific credit risk was a gain of $1 and a loss of $31 for the three months ended March 31, 2025 and 2024, respectively. The cumulative change in fair value since issuance was a loss of $8 as of March 31, 2025, net of the recognition of previously unrecognized gains and losses.