INVESTMENTS IN EQUITY INVESTEES

12 Months Ended

Dec. 31, 2015

INVESTMENTS IN EQUITY INVESTEES

INVESTMENTS IN EQUITY INVESTEES

6.     INVESTMENTS IN EQUITY INVESTEES

        As of December 31, 2015, following the sale transaction described above, the Company accounts for its remaining 25% interest in CTC Investments under the equity method. See Note 1. At the date of closing the sale, the Company recorded its share in the net assets of CTC Investments at the estimated fair value of $89,457.

        The Company's estimate of the fair value of its equity investments is highly dependent on the changing macroeconomic environment and political headwinds. There is considerable uncertainty concerning economic stability globally in the medium-term, including uncertainty over the impact of changes in the global economy on the Russian television advertising market. Also, the fair value estimates are also highly sensitive to the cost of capital used by the Company in the discounting of expected cash flows attributable to its equity investment in CTC Investments. The potential negative trends in the macroeconomic environment could increase the risk to investors investing in Russian markets, which could increase the cost of capital, which in turn will decrease the fair value equity investment. Additionally, changes in the financial markets, such as an increase in interest rates or an increase in the expected required return on equity by market participants within the industry, could increase the discount rate, thus decreasing the fair value of assets. See also Note 2—Summary of significant accounting policies—Fair value measurements.

        Summarized balance sheet data of CTC Investments as of December 31, 2015 is as follows:

	December 31, 2015
Current assets:		186,989
Non-current assets:		166,261
TOTAL ASSETS:		353,250
Current liabilities:		69,752
Non-current liabilities:		2,850
TOTAL LIABILITIES		72,602
Non-controlling interest		6,184