FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2020

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 for the periods presented (in millions):



	As of March 31, 2020				As of December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Level 1:
STG:
Money market funds	$	826	$	826	$	354	$	354
Deferred compensation assets	33		33		36		36
Deferred compensation liabilities	28		28		33		33
DSG:
Money market funds	256		256		559		559

Level 2 (a):
STG:
5.875% Senior Unsecured Notes due 2026	350		310		350		368
5.625% Senior Unsecured Notes due 2024	550		507		550		566
5.500% Senior Unsecured Notes due 2030	500		414		500		511
5.125% Senior Unsecured Notes due 2027	400		338		400		411
Term Loan B	1,325		1,259		1,329		1,326
Term Loan B-2	1,294		1,216		1,297		1,300
Revolving Credit Facility (b)	648		648		—		—
DSG:
6.625% Senior Unsecured Notes due 2027	1,820		1,217		1,825		1,775
5.375% Senior Secured Notes due 2026	3,050		2,478		3,050		3,085
Term Loan	3,284		2,528		3,292		3,284
Revolving Credit Facility (b)	225		225		—		—
Debt of variable interest entities	20		20		21		21
Debt of non-media subsidiaries	18		18		18		18

Level 3
DSG:
Variable payment obligations (c)	235		235		239		239


(a)	Amounts are carried in our consolidated balance sheets net of debt discount and deferred financing cost, which are excluded in the above table, of $223 million and $231 million as of March 31, 2020 and December 31, 2019, respectively.


(b)	On March 17, 2020, we drew down $648 million and $225 million under the STG Revolving Credit Facility and DSG Revolving Credit Facility, respectively. See Note 3. Notes Payable and Commercial Bank Financing for further information.

(c)

The Company records its variable payment obligations at fair value on a recurring basis. These liabilities are further described in Other Liabilities within Note 5. 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, 2019	$	239
Payments	(7		)
Measurement adjustments	3
Fair value at March 31, 2020	$	235