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Investments
 6 Months Ended
Jun. 30, 2017
Investments [Abstract]  
Investments Investments

The details of our investments are set forth below:
Accounting Method
 
June 30,
2017
 
December 31,
2016
 
in millions
Equity (a):
 
 
 
VodafoneZiggo JV (b)
$
4,329.1

 
$
4,186.6

Other
161.0

 
142.7

Total — equity
4,490.1

 
4,329.3

Fair value:
 
 
 
ITV plc (ITV) — subject to re-use rights
940.4

 
1,015.4

Sumitomo Corporation (Sumitomo)
594.1

 
538.4

ITI Neovision S.A.
158.8

 
129.3

Lions Gate Entertainment Corp (Lionsgate)
136.3

 
128.6

Other
240.6

 
245.5

Total — fair value
2,070.2

 
2,057.2

Cost
119.4

 
97.2

Total
$
6,679.7

 
$
6,483.7

_______________

(a)
At June 30, 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 $1,141.3 million and $1,054.7 million, respectively, due from a subsidiary of the VodafoneZiggo JV (as defined below) to a subsidiary of Liberty Global. The VodafoneZiggo JV Receivable bears interest at 5.55% and requires €100.0 million ($114.1 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. During the three and six months ended June 30, 2017, interest accrued on the VodafoneZiggo JV Receivable was $15.8 million and $30.6 million, respectively, all of which has been cash settled.

Equity Method Investments

The following table sets forth the details of our share of losses of affiliates, net:
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2017
 
2016
 
2017
 
2016
 
in millions
 
 
 
 
 
 
 
 
VodafoneZiggo JV (a)
$
6.5

 
$
—

 
$
5.2

 
$
—

Other
(8.2
)
 
(27.2
)
 
(22.3
)
 
(55.1
)
Total
$
(1.7
)

$
(27.2
)
 
$
(17.1
)
 
$
(55.1
)
_______________

(a)
Amounts include 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, one of our wholly-owned subsidiaries 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 (the “VodafoneZiggo JV”) between Vodafone Group plc (Vodafone) and Liberty Global. Ziggo Sport, which became a subsidiary of Ziggo Group Holding during the fourth quarter of 2016, operates premium sports channels in the Netherlands. As a result of the formation of the VodafoneZiggo JV (the VodafoneZiggo JV Transaction), effective December 31, 2016, we no longer consolidate Ziggo Group Holding.

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 the 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 was subject to post-closing adjustments. 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. During the second quarter of 2017, the equalization payment amount was finalized, resulting in an additional €3.9 million ($4.5 million at the transaction date) being received from Vodafone.

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. In addition, during the first six months of 2017, we received a dividend distribution from the VodafoneZiggo JV of $87.3 million, which was accounted for as a return on capital for purposes of our condensed consolidated statement of cash flows.

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 the Framework Agreement 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 provided during the term of the Framework Agreement. During the three and six months ended June 30, 2017, we recorded revenue of $31.8 million and $63.3 million, respectively, related to the JV Services. In addition, at June 30, 2017, $67.4 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 mobile and fixed-line operations of the VodafoneZiggo JV are experiencing significant competition. In particular, the mobile operations of the VodafoneZiggo JV continue to experience pressure on pricing, characterized by aggressive promotion campaigns, heavy marketing spend and increasing or unlimited data bundles. If the adverse impacts of economic, competitive, regulatory or other factors were to cause significant deterioration of the results of operations or cash flows of the VodafoneZiggo JV, we could conclude in future periods that our investment in the VodafoneZiggo JV is impaired or management of the VodafoneZiggo JV could conclude that an impairment of the VodafoneZiggo JV goodwill and, to a lesser extent, long-lived assets, is required. Any such impairment of the VodafoneZiggo JV’s goodwill or our investment in the VodafoneZiggo JV would be reflected as a component of share of results of affiliates, net, in our condensed consolidated statement of operations. Our share of any such impairment charges could be significant.

The summarized results of operations of the VodafoneZiggo JV are set forth below:
 
Three months ended June 30, 2017
 
Six months ended June 30, 2017
 
 
in millions
 
 
 
 
Revenue
$
1,096.5

 
$
2,180.3

Loss before income taxes
$
(25.6
)
 
$
(69.2
)
Net loss
$
(18.1
)
 
$
(48.7
)