v3.25.2
Derivative Instruments
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
In general, we seek to enter into derivative instruments to protect against (i) increases in the interest rates on our variable-rate debt and (ii) foreign currency movements. With the exception of certain foreign currency forward contracts, we use the fair value method to account for our derivative instruments and do not apply hedge accounting. The reported fair values of our derivative instruments likely will not represent the value that will be paid or received upon the ultimate settlement or disposition of these assets and liabilities, as we expect that the values realized generally will be based on market conditions at the time of settlement. Changes in the fair values of most of our derivative instruments are recorded in realized and unrealized gains or losses on derivative instruments in our condensed consolidated statements of operations. For additional information regarding our fair value measurements, see note 3.
The following table provides details of the fair values of our derivative instrument assets and liabilities:
 June 30, 2025December 31, 2024
 CurrentLong-term (a)TotalCurrentLong-term (a)Total
 in millions
Assets - interest rate derivative contracts (b)$65.6 $55.1 $120.7 $81.3 $109.2 $190.5 
Liabilities (b):
Interest rate derivative contracts$16.7 $47.2 $63.9 $38.0 $8.5 $46.5 
Foreign currency forward contracts7.4 0.7 8.1 10.6 — 10.6 
Total$24.1 $47.9 $72.0 $48.6 $8.5 $57.1 
(a)Our long-term derivative assets and long-term derivative liabilities are included in other assets, net and other long-term liabilities, respectively, in our condensed consolidated balance sheets.
(b)We consider credit risk relating to our nonperformance and the nonperformance of our counterparties in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 10) and are recorded in realized and unrealized gains or losses on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 3.
The derivative assets set forth in the table above exclude our Weather Derivatives as they are not accounted for at fair value. The premium payments associated with our Weather Derivatives are included in other current assets, net, in our condensed consolidated balance sheets.
The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows:
Three months ended June 30,Six months ended June 30,
 2025202420252024
 in millions
Interest rate derivative contracts$(16.8)$24.7 $(67.9)$85.9 
Foreign currency forward contracts0.1 6.5 (3.5)(0.7)
Weather Derivatives(8.0)(7.3)(16.2)(14.9)
Total$(24.7)$23.9 $(87.6)$70.3 
The following table sets forth the classification of the net cash inflows of our derivative instruments:
 Six months ended June 30,
 20252024
 in millions
Operating activities $13.0 $43.3 
Investing activities(0.9)(0.5)
Total$12.1 $42.8 
Counterparty Credit Risk
We are exposed to the risk that the counterparties to the derivative instruments of our borrowing groups will default on their obligations to us. We manage these credit risks through the evaluation and monitoring of the creditworthiness of, and concentration of risk with, the respective counterparties. In this regard, credit risk associated with our derivative instruments is spread across a relatively broad counterparty base of banks and financial institutions. Collateral has not been posted by either party under the derivative instruments of our borrowing groups. At June 30, 2025, our exposure to counterparty credit risk associated with our derivative instruments, as set forth in the assets and liabilities table above, included derivative assets with an aggregate fair value of $57 million.
Each of our borrowing groups has entered into derivative instruments under agreements with each counterparty that contain master netting arrangements that are applicable in the event of early termination by either party to such derivative instrument. The master netting arrangements under each of these master agreements are limited to the derivative instruments governed by the relevant master agreement within each individual borrowing group and are independent of similar arrangements of our other subsidiary borrowing groups.
Details of our Derivative Instruments
Interest Rate Derivative Contracts
Interest Rate Swaps
We enter into interest rate swaps to protect against increases in the interest rates on our variable-rate debt. Pursuant to these derivative instruments, we typically pay fixed interest rates and receive variable interest rates on specified notional amounts. The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our interest rate swap contracts at June 30, 2025:
Borrowing groupNotional amount due from counterpartyWeighted average remaining life
 
in millionsin years
C&W (a)$3,630.0 4.0
Liberty Puerto Rico$500.0 2.3
(a)Includes forward-starting derivative instruments and, on certain interest rate swaps, embedded floors of 0%.
Basis Swaps
Basis swaps involve the exchange of attributes used to calculate our floating interest rates, including (i) the benchmark rate, (ii) the underlying currency and/or (iii) the borrowing period. We typically enter into these swaps to optimize our interest rate profile based on our current evaluations of yield curves, our risk management policies and other factors. The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our basis swap contracts at June 30, 2025:
Borrowing groupNotional amount due from counterpartyWeighted average remaining life
 
in millionsin years
C&W$590.0 0.5
Liberty Puerto Rico$620.0 0.5
Interest Rate Floors
Interest rate floors provide protection against interest rates falling below a pre-set level. At June 30, 2025, our Liberty Puerto Rico borrowing group had an interest rate floor with a total notional amount of $620 million and a remaining contractual life of 2.3 years.
Interest Rate Caps
Interest rate caps provide protection against interest rates rising above a pre-set level. At June 30, 2025, our Liberty Puerto Rico borrowing group had interest rate caps with total notional amounts of $120 million and a remaining weighted average contractual life of 2.3 years.
Foreign Currency Forward Contracts
We enter into foreign currency forward contracts with respect to non-functional currency exposure. At June 30, 2025, our Liberty Costa Rica borrowing group had foreign currency forward contracts with total notional amounts due from and to counterparties of $211 million and CRC 113 billion, respectively, with a weighted average remaining contractual life of 0.7 years.