FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of carrying value and fair value of notes and debentures

The following table sets forth the carrying value and fair value of our financial assets and liabilities as of December 31, 2019 and 2018 (in millions):



	2019				2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
Level 1:
STG:
Money market funds	$	913	$	913	$	961	$	961
Deferred compensation assets	36		36		26		26
Deferred compensation liabilities	33		33		24		24

Level 2 (a):
STG:
6.125% Senior Unsecured Notes due 2022 (b)	—		—		500		504
5.875% Senior Unsecured Notes due 2026	350		368		350		326
5.625% Senior Unsecured Notes due 2024	550		566		550		516
5.500% Senior Unsecured Notes due 2030 (c)	500		511		—		—
5.375% Senior Unsecured Notes due 2021 (b)	—		—		600		599
5.125% Senior Unsecured Notes due 2027	400		411		400		353
Term Loan A (d)	—		—		96		92
Term Loan B	1,329		1,326		1,343		1,275
Term Loan B-2 (c)	1,297		1,300		—		—
DSG:
6.625% Senior Unsecured Notes due 2027 (c)	1,825		1,775		—		—
5.375% Senior Secured Notes due 2026 (c)	3,050		3,085		—		—
Term Loan (c)	3,292		3,284		—		—
Debt of variable interest entities	21		21		25		25
Debt of non-media subsidiaries	18		18		20		20

Level 3:
DSG:
Variable payment obligations (e)	239		239		—		—


(a)	Amounts are carried on our consolidated balance sheets net of debt discount and deferred financing costs, which are excluded in the above table, of $231 million and $33 million as of December 31, 2019 and 2018, respectively.


(b)	The STG 6.125% Notes and STG 5.375% Notes were redeemed, in full, in November 2019 and August 2019, respectively. See Note 7. Notes Payable and Commercial Bank Financing for additional information.


(c)	The STG Term Loan B-2, DSG Term Loan, and DSG Senior Notes were issued in August 2019 and the STG 5.500% Notes were issued in November 2019. See Note 7. Notes Payable and Commercial Bank Financing for additional information.


(d)	On April 30, 2019, we paid in full the remaining principal balance of $92 million of Term Loan A debt under the STG Bank Credit Agreement, due July 31, 2021.

(e)

The Company records its variable payment obligations at fair value on a recurring basis. These liabilities are further described in Other Liabilities within Note 13. Commitments and Contingencies. Significant unobservable inputs used in the fair value measurement are projected future operating income before depreciation and amortization; and weighted average discount rate of 9%. Significant increases (decreases) in projected future operating income would generally result in a significantly higher (lower) fair value measurement. Significant increases (decreases) in discount rates, would result in a significantly (lower) higher fair value measurement.

Schedule of changes in Level 3 financial liabilities measured on recurring basis

The following table summarizes the changes in financial liabilities measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy (in millions):



	Variable Payment Obligations
Fair value at December 31, 2018	$	—
Liabilities acquired in the acquisition of the RSNs	264
Payments	(33		)
Measurement adjustments	8
Fair value at December 31, 2019	$	239