Investments

3 Months Ended

Mar. 31, 2019

The details of our investments are set forth below:



Accounting Method	March 31, 2019		December 31, 2018
	in millions
Equity (a):
VodafoneZiggo JV (b)	$	3,624.1	$	3,761.5
Other	203.2		185.5
Total — equity	3,827.3		3,947.0
Fair value:
ITV plc (ITV) — subject to re-use rights (c)	658.1		634.2
ITI Neovision S.A. (ITI Neovision)	118.1		125.4
Lions Gate Entertainment Corp (Lionsgate) (c)	76.9		77.5
Casa Systems, Inc. (Casa)	23.3		39.5
Other	310.7		298.2
Total — fair value	1,187.1		1,174.8
Total	$	5,014.4	$	5,121.8

_______________

(a)

At March 31, 2019 and December 31, 2018, the carrying amount of our equity method investment in the VodafoneZiggo JV exceeded our proportionate share of that entity’s net assets by the amount of the VodafoneZiggo JV Receivable, as defined and described below. The carrying amounts of our other equity method investments did not materially exceed our proportionate share of the respective investee’s net assets at March 31, 2019 and December 31, 2018.

(b)

Amounts include a euro-denominated note receivable (the VodafoneZiggo JV Receivable) with a principal amount of $910.1 million and $916.1 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 matures on January 16, 2028. During the three months ended March 31, 2019, interest accrued on the VodafoneZiggo JV Receivable was $12.6 million, all of which will be cash settled.


(c)	In connection with our investments in ITV and Lionsgate, we have entered into the ITV Collar and the Lionsgate Forward, respectively, as defined and described in note 6.

Equity Method Investments

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



	Three months ended March 31,
	2019			2018
	in millions

VodafoneZiggo JV (a)	$	(62.3	)	$	(26.8	)
Other	(8.6		)	(9.7		)
Total	$	(70.9	)	$	(36.5	)

_______________


(a)	Amounts include the net effect of (i) 100% of the interest income earned on the VodafoneZiggo JV Receivable and (ii) our 50% share of the remaining results of operations of the VodafoneZiggo JV.

VodafoneZiggo JV. Pursuant to an agreement entered into in connection with the formation of the VodafoneZiggo JV (the Framework Agreement), Liberty Global provides certain services to the VodafoneZiggo JV on a transitional or ongoing basis (collectively, the JV Services). 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 months ended March 31, 2019 and 2018, we recorded revenue from the VodafoneZiggo JV of $28.0 million and $34.5 million, respectively, primarily related to (a) the JV Services and (b) sales of customer premises equipment at a mark-up. In addition, during the three months ended March 31, 2019 and 2018, we purchased certain assets on the VodafoneZiggo JV’s behalf with an aggregate cost of $3.9 million and $9.9 million, respectively. At March 31, 2019 and December 31, 2018, $20.4 million and $24.4 million, respectively, were due from the VodafoneZiggo JV, primarily related to the aforementioned transactions and certain other transactions. These amounts due from the VodafoneZiggo JV, which are periodically cash settled, are included in other current assets on our condensed consolidated balance sheets.

The VodafoneZiggo JV is experiencing significant competition. In particular, the mobile operations of the VodafoneZiggo JV continue to experience competitive pressure on pricing. In light of this competition, as well as regulatory and economic factors, 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’s 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 March 31,
	2019			2018
	in millions

Revenue	$	1,093.9		$	1,196.6
Loss before income taxes	$	(188.8	)	$	(103.7	)
Net loss	$	(150.3	)	$	(76.2	)