Investments

3 Months Ended

Mar. 31, 2017

The details of our investments are set forth below:



Accounting Method	March 31, 2017		December 31, 2016
	in millions
Equity (a):
VodafoneZiggo JV (b)	$	4,151.8	$	4,186.6
Other	133.8		142.7
Total — equity	4,285.6		4,329.3
Fair value:
ITV plc (ITV) — subject to re-use rights	1,094.1		1,015.4
Sumitomo Corporation (Sumitomo)	614.2		538.4
ITI Neovision S.A.	135.2		129.3
Lions Gate Entertainment Corp (Lionsgate)	127.4		128.6
Other	258.3		245.5
Total — fair value	2,229.2		2,057.2
Cost	99.1		97.2
Total	$	6,613.9	$	6,483.7

_______________


(a)	At March 31, 2017 and December 31, 2016, the aggregate carrying amounts of our equity method investments did not materially exceed our proportionate share of the respective investees’ net assets.

(b)

Amounts include a related-party note receivable (the VodafoneZiggo JV Receivable) with a principal amount of $1,069.7 million and $1,054.7 million, respectively, due from a subsidiary of the VodafoneZiggo JV to a subsidiary of Liberty Global. The VodafoneZiggo JV Receivable bears interest at 5.55% and requires €100.0 million ($107.0 million) of principal to be paid annually during the first three years of the agreement, with the remaining principal due on January 16, 2027. The accrued interest on the VodafoneZiggo JV Receivable will be payable in a manner mutually agreed upon by Liberty Global and the VodafoneZiggo JV. Interest accrued on the VodafoneZiggo JV Receivable during the first quarter of 2017 of $14.8 million was cash settled in March 2017.

Equity Method Investments

The following table sets forth the details of our share of losses of affiliates, net:



	Three months ended March 31,
	2017		2016
	in millions

VodafoneZiggo JV (a)	$	1.3	$	—
Other	14.1		27.9
Total	$	15.4	$	27.9

_______________

(a)

Amount includes the net effect of (i) 100% of the interest income earned on the VodafoneZiggo JV Receivable, (ii) 100% of the share-based compensation expense associated with Liberty Global awards held by VodafoneZiggo JV employees who were formerly employees of Liberty Global, as these awards remain our responsibility, and (iii) our 50% share of the remaining results of operations of the VodafoneZiggo JV.

VodafoneZiggo JV. On December 31, 2016, pursuant to a Contribution and Transfer Agreement with Vodafone Group plc (Vodafone) and one of its wholly-owned subsidiaries, we and Liberty Global Europe Holding B.V., our wholly-owned subsidiary, contributed Ziggo Group Holding and its subsidiaries (including Liberty Global Netherlands Content B.V., referred to herein as “Ziggo Sport”) to VodafoneZiggo Group Holding B.V., a newly-formed entity that was formed as a 50:50 joint venture between Vodafone and Liberty Global (the “VodafoneZiggo JV”). Ziggo Sport, which became a subsidiary of Ziggo Group Holding during the fourth quarter of 2016, operates premium sports channels in the Netherlands. The VodafoneZiggo JV combined Ziggo Group Holding with Vodafone’s mobile business in the Netherlands (Vodafone NL) to create a national unified communications provider in the Netherlands with complementary strengths across video, broadband, mobile and B2B services (the VodafoneZiggo JV Transaction). As a result of the VodafoneZiggo JV Transaction, effective December 31, 2016 we no longer consolidate Ziggo Group Holding. We account for our 50% interest in the VodafoneZiggo JV, which has been attributed to the Liberty Global Group, as an equity method investment. We consider the VodafoneZiggo JV to be a related party.

On January 4, 2017, in connection with the completion of the VodafoneZiggo JV Transaction, we received cash of €2.2 billion ($2.4 billion at transaction date) comprising (i) a distribution reflecting our 50% share of the €2.8 billion ($2.9 billion at the transaction date) of net proceeds from the various debt financing arrangements entered into by certain subsidiaries of Ziggo Group Holding during the third quarter of 2016 and (ii) an equalization payment from Vodafone of €802.9 million ($840.8 million at the transaction date) that is subject to post-closing adjustments, which are expected to be finalized during the second quarter of 2017. At December 31, 2016, our right to receive this cash is reflected as a current receivable from the VodafoneZiggo JV in our condensed consolidated balance sheet. In addition, during the first quarter of 2017, we paid $162.6 million of VAT on behalf of the VodafoneZiggo JV associated with the termination of a services agreement with Ziggo Group Holding that was in effect prior to the closing of the VodafoneZiggo JV Transaction. This advance was repaid during the first quarter of 2017.

Pursuant to an agreement entered into in connection with the formation of the VodafoneZiggo JV Transaction (the Framework Agreement), Liberty Global provides certain services to the VodafoneZiggo JV on a transitional or ongoing basis (collectively, the JV Services). Pursuant to the terms of the Framework Agreement, the ongoing services will be provided for a period of four to six years depending on the type of service, while transitional services will be provided for a period of not less than 12 months after which both parties shall be entitled to terminate based on specified notice periods. The JV Services provided by Liberty Global consist primarily of (i) technology and other services and (ii) capital-related expenditures for assets that will be used by or will otherwise benefit the VodafoneZiggo JV. Liberty Global charges both fixed and usage-based fees to the VodafoneZiggo JV for the JV Services it provides during the term of the Framework Agreement. During the three months ended March 31, 2017, we recorded revenue of $31.5 million related to the JV Services. In addition, at March 31, 2017, $87.5 million was due from the VodafoneZiggo JV, primarily related to (a) services performed under the Framework Agreement and (b) amounts incurred by Liberty Global for certain equipment and licenses purchased on behalf of the VodafoneZiggo JV. This amount, which is periodically cash settled, is included in other current assets in our condensed consolidated balance sheet.

The summarized results of operations of the VodafoneZiggo JV for the three months ended March 31, 2017 are set forth below (in millions):



Revenue	$	1,083.8
Loss before income taxes	$	(43.6	)
Net loss	$	(30.6	)