v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We use the fair value method to account for (i) certain of our investments and (ii) our derivative instruments. The reported fair values of these investments and derivative instruments as of June 30, 2025 are unlikely to represent the value that will be paid or received upon the ultimate settlement or disposition of these assets and liabilities.

GAAP provides for a fair value hierarchy that prioritizes the 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. We record transfers of assets or liabilities into or out of Levels 1, 2 or 3 at the beginning of the quarter during which the transfer occurred. During the second quarter of 2025, the Vodafone Collar transferred from Level 3 to Level 2. For additional information regarding the Vodafone Collar see note 5.

We use a Monte Carlo based approach to incorporate a credit risk valuation adjustment in our fair value measurements to estimate the impact of both our own nonperformance risk and the nonperformance risk of our counterparties. Our credit risk valuation adjustments with respect to our cross-currency and interest rate swap contracts are quantified and further explained in note 6.

Fair value measurements are also used for nonrecurring valuations performed in connection with acquisition accounting and impairment assessments. These nonrecurring valuations include the valuation of reporting units, customer relationships and other intangible assets, property and equipment and the implied value of goodwill. The valuation of reporting units is based on an income-based approach (discounted cash flows) using assumptions in our long-range business plans or a market-based approach (current multiples of comparable public companies and guideline transactions) and, in some cases, a combination of an income-based approach and a market-based approach. With the exception of certain inputs for our weighted average cost of capital and discount rate calculations that are derived from pricing services, the inputs used in our discounted cash flow analyses, such as forecasts of future cash flows, including inputs with respect to revenue growth and Adjusted EBITDA margin (as defined in note 16), and terminal growth rates, are based on our assumptions. The valuation of customer relationships is primarily based on an excess earnings methodology, which is a form of a discounted cash flow analysis. The excess earnings methodology requires us to estimate the specific cash flows expected from the customer relationship, considering such factors as estimated customer life, the revenue expected to be generated over the life of the customer relationship, contributory asset charges and other factors. Tangible assets are typically valued using a replacement or reproduction cost approach, considering factors such as current prices of the same or similar equipment, the age of the equipment and economic obsolescence. The implied value of goodwill is determined by allocating the fair value of a reporting unit to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination, with the residual amount allocated to goodwill. Most of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. During the six months ended June 30, 2025 and 2024 we did not perform any significant nonrecurring fair value measurements.

For additional information concerning our fair value measurements, see note 9 to the consolidated financial statements included in our 2024 10-K.
A summary of our assets and liabilities that are measured at fair value on a recurring basis is as follows:
  
Fair value measurements at
June 30, 2025 using:
DescriptionJune 30,
2025		Quoted prices in active markets for identical assets
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)
 in millions
Assets:
Derivative instruments:
Cross-currency and interest rate derivative contracts
$270.1 $— $270.1 $— 
Equity-related derivative instruments
29.3 — 29.3 — 
Foreign currency forward and option contracts
15.6 — 15.6 — 
Other
7.0 — 7.0 — 
Total derivative instruments
322.0 — 322.0 — 
Investments:
SMAs
82.8 — 82.8 — 
Other investments3,175.3 1,807.5 0.1 1,367.7 
Total investments
3,258.1 1,807.5 82.9 1,367.7 
Total assets$3,580.1 $1,807.5 $404.9 $1,367.7 
Liabilities:
Derivative instruments:
Cross-currency and interest rate derivative contracts$304.5 $— $304.5 $— 
Foreign currency forward and option contracts21.8 — 21.8 — 
Other
6.9 — 6.9 — 
Total liabilities$333.2 $— $333.2 $— 
  
Fair value measurements at 
December 31, 2024 using:
DescriptionDecember 31, 2024Quoted prices in active markets for identical assets
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)
 in millions
Assets:
Derivative instruments:
Cross-currency and interest rate derivative contracts
$623.2 $— $623.2 $— 
Equity-related derivative instruments
213.4 — — 213.4 
Foreign currency forward and option contracts
6.5 — 6.5 — 
Other
0.8 — 0.8 — 
Total derivative instruments
843.9 — 630.5 213.4 
Investments:
SMAs
433.1 127.0 306.1 — 
Other investments2,810.2 1,546.3 0.1 1,263.8 
Total investments3,243.3 1,673.3 306.2 1,263.8 
Total assets$4,087.2 $1,673.3 $936.7 $1,477.2 
Liabilities:
Derivative instruments:
Cross-currency and interest rate derivative contracts$183.1 $— $183.1 $— 
Foreign currency forward and option contracts3.3 — 3.3 — 
Total liabilities$186.4 $— $186.4 $— 

A reconciliation of the beginning and ending balances of our assets and liabilities measured at fair value on a recurring basis using significant unobservable, or Level 3, inputs is as follows:
InvestmentsEquity-related
derivative
instruments		Total
 in millions
Balance of net assets at January 1, 2025
$1,263.8 $213.4 $1,477.2 
Losses included in loss from continuing operations (a):
Realized and unrealized losses on derivative instruments, net— (49.2)(49.2)
Realized and unrealized losses due to changes in fair values of certain investments, net(88.6)— (88.6)
Additions60.5 — 60.5 
Transfers out of Level 3— (173.8)(173.8)
Foreign currency translation adjustments and other, net132.0 9.6 141.6 
Balance of net assets at June 30, 2025 (b)
$1,367.7 $— $1,367.7 
_______________

(a)Amounts primarily relate to assets and liabilities that we continue to carry on our condensed consolidated balance sheet as of June 30, 2025.
(b)As of June 30, 2025, $366.6 million of our Level 3 investments were accounted for under the measurement alternative at cost less impairment, adjusted for observable price changes.