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Investments
 12 Months Ended
Dec. 31, 2019
Investments [Abstract]  
Investments Investments

The details of our investments are set forth below:
 
 
December 31,
Accounting Method
 
2019
 
2018
 
in millions
Equity (a):
 
 
 
VodafoneZiggo JV (b)
$
3,174.1

 
$
3,761.5

All3Media Group (All3Media)
172.8

 
72.2

Formula E Holdings Ltd (Formula E)
105.2

 
45.4

Other
40.7

 
67.9

Total — equity
3,492.8

 
3,947.0

Fair value:
 
 
 
ITV plc (ITV) — subject to re-use rights (c)
798.1

 
634.2

ITI Neovision S.A. (ITI Neovision)
122.4

 
125.4

Lions Gate Entertainment Corp (Lionsgate) (c)
68.0

 
77.5

Casa Systems, Inc. (Casa)
3.1

 
39.5

Other
297.6

 
298.2

Total — fair value
1,289.2

 
1,174.8

Total
$
4,782.0

 
$
5,121.8


_______________

(a)
Our equity method investments are originally recorded at cost and are adjusted to recognize our share of net earnings or losses of affiliates as they occur rather than as dividends or other distributions are received, with our recognition of losses generally limited to the extent of our investment in, and advances and commitments to, the investee. At December 31, 2019 and 2018, the aggregate carrying amounts of our equity method investments exceeded our proportionate share of the respective investee’s net assets by $1,041.0 million and $1,016.9 million, respectively, which include amounts associated with the VodafoneZiggo JV Receivable, as defined and described below, and amounts we are owed under a long-term note receivable from All3Media.

(b)
Amounts include a euro-denominated note receivable (the VodafoneZiggo JV Receivable) with a principal amount of $786.1 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. In each of 2019, 2018 and 2017, we received a €100.0 million principal payment on the VodafoneZiggo JV Receivable ($112.1 million, $114.5 million and $118.5 million at the respective transaction dates). During 2019, interest accrued on the VodafoneZiggo JV Receivable was $50.4 million, all of which was cash settled.

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

Fair Value Investments

The following table sets forth the details of our realized and unrealized gains (losses) due to changes in fair values of certain investments, net:
 
Year ended December 31,
 
2019
 
2018
 
2017
 
in millions
ITV
$
163.9

 
$
(257.8
)
 
$
(123.5
)
Lionsgate
(25.0
)
 
(86.4
)
 
35.3

Casa
(24.2
)
 
(9.2
)
 
47.9

ITI Neovision
2.7

 
(24.9
)
 
15.8

Sumitomo
—

 
(3.4
)
 
238.2

Other, net
(18.4
)
 
(11.5
)
 
14.4

Total
$
99.0

 
$
(393.2
)
 
$
228.1



Equity Method Investments

The following table sets forth the details of our share of results of affiliates, net:
 
Year ended December 31,
 
2019
 
2018
 
2017
 
in millions
VodafoneZiggo JV (a)
$
(185.9
)
 
$
11.4

 
$
(70.1
)
All3Media
(8.8
)
 
(19.2
)
 
(25.5
)
Formula E
1.7

 
(0.2
)
 
(1.5
)
Other
(5.5
)
 
(0.7
)
 
1.9

Total
$
(198.5
)
 
$
(8.7
)
 
$
(95.2
)
_______________

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

VodafoneZiggo JV. Each of Liberty Global and Vodafone (each a “Shareholder”) holds 50% of the issued share capital of the VodafoneZiggo JV. The Shareholders intend for the VodafoneZiggo JV to be funded solely from its net cash flow from operations and third-party financing. We account for our 50% interest in the VodafoneZiggo JV as an equity method investment. We consider the VodafoneZiggo JV to be a related party. For additional information regarding formation of the VodafoneZiggo JV, see note 6.

In connection with the formation of the VodafoneZiggo JV, the Shareholders entered into a shareholders agreement (the Shareholders Agreement). The Shareholders Agreement contains customary provisions for the governance of a 50:50 joint venture that result in Liberty Global and Vodafone having joint control over decision making with respect to the VodafoneZiggo JV.

The Shareholders Agreement also provides (i) for a dividend policy that requires the VodafoneZiggo JV to distribute all unrestricted cash to the Shareholders every two months (subject to the VodafoneZiggo JV maintaining a minimum amount of cash and complying with the terms of its financing arrangements) and (ii) that the VodafoneZiggo JV will be managed with a leverage ratio of between 4.5 and 5.0 times EBITDA (as calculated pursuant to its existing financing arrangements) with the VodafoneZiggo JV undertaking periodic recapitalizations and/or refinancings accordingly.

Each Shareholder has the right to initiate an initial public offering (IPO) of the VodafoneZiggo JV after December 31, 2019, with the opportunity for the other Shareholder to sell shares in the IPO on a pro rata basis. Subject to certain exceptions, the Shareholders Agreement prohibits transfers of interests in the VodafoneZiggo JV to third parties until December 31, 2020. After December 31, 2020, each Shareholder will be able to initiate a sale of all of its interest in the VodafoneZiggo JV to a third party
and, under certain circumstances, initiate a sale of the entire VodafoneZiggo JV, subject, in each case, to a right of first offer in favor of the other Shareholder.

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 B.V. 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 2019, 2018 and 2017, we received dividend distributions from the VodafoneZiggo JV of $162.7 million, $232.5 million and $252.8 million, respectively, which were accounted for as returns on capital for purposes of our consolidated statements of cash flows.

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 2019, 2018 and 2017, we recorded revenue from the VodafoneZiggo JV of $189.1 million, $189.1 million and $132.4 million, respectively, primarily related to (a) the JV Services and (b) during 2019 and 2018, sales of customer premises equipment at a mark-up. In addition, during 2019, 2018 and 2017, we purchased certain assets on the VodafoneZiggo JV’s behalf with an aggregate cost of $14.4 million, $13.1 million and $144.7 million, respectively. At December 31, 2019 and 2018, $19.3 million and $24.4 million, respectively, were due from the VodafoneZiggo JV related to the aforementioned transactions. The amounts due from the VodafoneZiggo JV, which are periodically cash settled, are included in other current assets on our 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 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:
 
Year ended December 31,
 
2019
 
2018
 
2017
 
in millions
 
 
 
 
 
 
Revenue
$
4,407.8

 
$
4,602.2

 
$
4,512.5

Loss before income taxes
$
(512.5
)
 
$
(467.8
)
 
$
(362.9
)
Net loss
$
(470.0
)
 
$
(91.6
)
 
$
(259.3
)

The summarized financial position of the VodafoneZiggo JV is set forth below:
 
December 31,
 
2019
 
2018
 
in millions
 
 
 
 
Current assets
$
918.4

 
$
1,099.6

Long-term assets
21,508.1

 
22,155.7

Total assets
$
22,426.5

 
$
23,255.3

 
 
 
 
Current liabilities
$
2,726.4

 
$
2,812.3

Long-term liabilities
14,920.7

 
14,751.5

Owners’ equity
4,779.4

 
5,691.5

Total liabilities and owners’ equity
$
22,426.5


$
23,255.3

    
Fair Value Investments

ITV. At December 31, 2019 and 2018, we owned 398,515,510 shares of ITV, a commercial broadcaster in the U.K. Our ITV shares represented less than 10.0% of the total outstanding shares of ITV as of June 30, 2019, the most current publicly-available information. The aggregate purchase price paid to acquire our investment in ITV was financed through borrowings under secured borrowing agreements (the ITV Collar Loan). All of the ITV shares we hold are subject to a share collar (the ITV Collar) and pledged as collateral under the ITV Collar Loan. Under the terms of the ITV Collar, the counterparty has the right to re-use all of the pledged ITV shares. For additional information regarding the ITV Collar, see note 8.

ITI Neovision. At December 31, 2019 and 2018, we owned a 17.0% interest in ITI Neovision, a privately-held DTH operator in Poland.

Lionsgate. At December 31, 2019 and 2018, we owned 4.0 million and 2.5 million voting shares, respectively, and 2.5 million non-voting shares of Lionsgate common stock, which represented less than 5% of the total outstanding shares of Lionsgate. Certain of our voting and non-voting Lionsgate shares are subject to a variable prepaid forward transaction (the Lionsgate Forward), as further described in note 8.

Casa. At December 31, 2019 and 2018, we owned 787,074 and 3,005,307 shares, respectively, of Casa common stock. Casa is a U.S.-based provider of fixed, mobile, optical and Wi-Fi network software solutions for ultra-broadband services. Our Casa shares represented less than 1.0% of the total outstanding shares of Casa as of October 31, 2019, the most current publicly-available information.