v3.26.1
Assets and Liabilities Measured at Fair Value
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value
(5) Assets and Liabilities Measured at Fair Value
For assets and liabilities required to be reported at fair value, 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 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.
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. Prior to the Petition Date, the Company's Level 2 financial liabilities were exchangeable debt instruments with quoted market prices that were not considered to be traded on “active markets,” as defined in GAAP. The fair values for such instruments were derived from a typical model using observable market data as the significant inputs. Accordingly, these financial instruments were reported in the below table as Level 2 fair value instruments as of December 31, 2025. As of the Petition Date, the Company's 4.00% and 3.75% Exchangeable Debentures were reclassified to Liabilities subject to compromise in the Condensed Consolidated Balance Sheet and adjusted to the expected allowed claim amount.
The Company's assets and liabilities measured at fair value on a recurring basis are as follows:
Fair Value Measurements at
June 30, 2026
DescriptionTotalQuoted
prices
in active
markets for
identical
assets
(Level 1)		Significant
other
observable
inputs
(Level 2)
amounts in millions
Cash equivalents$459 459 — 
Fair Value Measurements at
December 31, 2025
DescriptionTotalQuoted
prices
in active
markets for
identical
assets
(Level 1)		Significant
other
observable
inputs
(Level 2)
amounts in millions
Cash equivalents$816 816 — 
Exchangeable senior debentures52 — 52 

Realized and Unrealized Gains (Losses) on Financial Instruments
Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following:
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
amounts in millions
Equity securities $— (1)(6)(1)
Exchangeable senior debentures8 (20)93 (35)
$8 (21)$87 (36)
Prior to the Petition Date, the Company elected to account for its exchangeable debt using the fair value option. Changes in the fair value of the exchangeable senior debentures recognized in the condensed consolidated statement of operations were primarily due to market factors largely driven by changes in the fair value of the underlying shares into which the debt is exchangeable.
The Company isolated the portion of the unrealized gain (loss) attributable to the change in the instrument-specific credit risk and recognized such amount in other comprehensive earnings (loss). Prior to the Petition Date, the change in the fair value of the exchangeable senior debentures attributable to changes in the instrument-specific credit risk were gains of $8 million and $176 million net of the recognition of previously unrecognized gains and losses, for the three months ended June 30, 2026 and 2025, respectively. The change in the fair value of the exchangeable senior debentures attributable to changes in the instrument specific credit risk were gains of $25 million and $229 million, net of the recognition of previously unrecognized gains and losses, for the six months ended June 30, 2026 and 2025, respectively.
During the first quarter of 2026, certain holders of the 4.00% and 3.75% Exchangeable Senior Debentures exchanged their debentures for cash in an amount equal to the current market price of the shares underlying their debentures. As a result of the exchanges, the Company settled a total of $59 million and $3 million in principal and carrying value, respectively, relating to the 4.00% Exchangeable Senior Debentures, and a total of $14 million and $1 million in principal and carrying value, respectively, relating to the 3.75% Exchangeable Senior Debentures. During the first quarter of 2026, the Company recognized $62 million and $13 million of previously unrecognized gains related to the retirement of a portion of the 4.00% and 3.75% Exchangeable Debentures, respectively, in realized and unrealized gains (losses) on financial instruments, net on the condensed consolidated statement of operations. The cumulative change was a gain of $772 million as of December 31, 2025, net of the recognition of previously unrecognized gains and losses.
The Company recognized $701 million of previously unrecognized gains, related to the adjustment of the exchangeable senior debentures to allowed claim amount as a result of the Chapter 11 Cases, in reorganization items, net in the condensed consolidated statement of operations.