v3.25.4
Derivative Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The following table provides details of the fair values of our derivative instrument assets and liabilities:
 December 31, 2025December 31, 2024
 Current (a)Long-term (a)TotalCurrent (a)Long-term (a)Total
 in millions
Assets — interest rate derivative contracts (b)$44.2 $28.2 $72.4 $81.3 $109.2 $190.5 
Liabilities (b):
Interest rate derivative contracts$7.2 $46.8 $54.0 $38.0 $8.5 $46.5 
Foreign currency forward contracts5.1 — 5.1 10.6 — 10.6 
Total$12.3 $46.8 $59.1 $48.6 $8.5 $57.1 
(a)Our current derivative assets, long-term derivative assets, current derivative liabilities and long-term derivative liabilities are included in other current assets, net, other assets, net, other accrued and current liabilities and other long-term liabilities, respectively, in our consolidated balance sheets.
(b)We consider credit risk relating to our nonperformance and the nonperformance of our counterparties in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 9) and are recorded in realized and unrealized gains or
losses on derivative instruments, net, in our consolidated statements of operations. For further information regarding our fair value measurements, see note 4.
The derivative assets set forth in the table above exclude our Weather Derivatives, as they are not accounted for at fair value. The premium payments associated with our Weather Derivatives are included in other current assets, net, in our consolidated balance sheets.
The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows:
Year ended December 31,
 202520242023
 in millions
Interest rate and cross-currency derivative contracts$(63.4)$76.7 $27.3 
Foreign currency forward contracts and other(7.1)(7.6)(30.6)
Weather Derivatives50.5 13.0 (30.9)
Total$(20.0)$82.1 $(34.2)
The following table sets forth the classification of the net cash inflows of our derivative instruments:
 Year ended December 31,
 202520242023
 in millions
Operating activities (a)$81.7 $94.2 $35.6 
Investing activities(1.9)(1.3)— 
Financing activities18.8 43.2 9.8 
Total$98.6 $136.1 $45.4 
(a)The 2025 amount primarily relates to (i) $81 million in net proceeds in connection with the settlement of certain Hurricane Melissa claims under our Weather Derivatives and (ii) cash outflow of $6 million related to the Liberty Puerto Rico cash-settlement of all outstanding interest rate derivative instruments. The 2024 amount primarily includes $44 million of net proceeds in connection with the settlement of certain Hurricane Beryl claims under our Weather Derivatives.
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 December 31, 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 $21 million.
Our C&W and Liberty Costa Rica borrowing groups have each 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. At December 31, 2025, our C&W borrowing group had an outstanding notional amount of $3,630 million due from our counterparties under interest rate swap contracts, which includes forward-starting derivative instruments, certain interest rate swap contracts with an embedded floor of 0%, and certain interest rate swap contracts where the counterparty has the right to cancel at a certain date in the future, and the related weighted average remaining contractual life was 4.6 years.
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. At December 31, 2025, our C&W borrowing group had an outstanding notional amount of $1,180 million due from our counterparties under basis swap contracts, and the related weighted average remaining contractual life was 0.2 years.
Foreign Currency Forwards Contracts
We enter into foreign currency forward contracts with respect to non-functional currency exposure. At December 31, 2025, our Liberty Costa Rica borrowing group had foreign currency forward contracts with total notional amounts due from and to counterparties of $191 million and CRC 100 billion, respectively, with a weighted average remaining contractual life of 0.5 years.