XML 102 R28.htm IDEA: XBRL DOCUMENT v3.20.1
Investments (Tables)
 3 Months Ended
Mar. 31, 2020
Investments [Abstract]  
Schedule of Investments by Accounting Method

The details of our investments are set forth below:
Accounting Method
 
March 31,
2020
 
December 31,
2019
 
in millions
Equity (a):
 
 
 
Long-term:
 
 
 
VodafoneZiggo JV (b)
$
3,131.7

 
$
3,174.1

All3Media Group (All3Media)
141.8

 
172.8

Formula E Holdings Ltd (Formula E)
101.8

 
105.2

Other
58.2

 
40.7

Total — equity
3,433.5

 
3,492.8

Fair value:
 
 
 
Short-term:
 
 
 
Separately-managed accounts (SMAs) (c)
1,640.2

 
—

Long-term:
 
 
 
SMAs (c)
333.8

 
—

ITV plc (ITV) — subject to re-use rights (d)
326.2

 
798.1

ITI Neovision S.A. (ITI Neovision)
111.6

 
122.4

Lions Gate Entertainment Corp (Lionsgate) (e)
38.6

 
68.0

Other
323.9

 
300.7

Total — fair value
2,774.3

 
1,289.2

Total investments (f)
$
6,207.8

 
$
4,782.0

Short-term investments
$
1,640.2

 
$
—

Long-term investments
$
4,567.6

 
$
4,782.0

_______________

(a)
Our equity method investments are originally recorded at cost and are adjusted to recognize our share of net earnings or losses of the 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 March 31, 2020 and December 31, 2019, the aggregate carrying amounts of our equity method investments exceeded our proportionate share of the respective investee’s net assets by $972.4 million and $1,041.0 million, respectively, which include amounts associated with the VodafoneZiggo JV Receivable, as defined 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 $768.0 million and $786.1 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, 2020, interest accrued on the VodafoneZiggo JV Receivable was $10.8 million, all of which has been cash settled.

(c)
Represents investments held under SMAs, which are maintained by investment managers acting as agents on our behalf. We classify, measure and report these investments, the composition of which may change from time to time, based on the underlying nature and characteristics of each security held under the SMAs. As of March 31, 2020, all of our investments held under SMAs were classified as available-for-sale debt securities, as further described under Fair Value Investments — Debt Securities below.

(d)
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 the ITV Collar (as defined in note 6) and pledged as collateral under the ITV Collar Loan. As of March 31, 2020, the fair value of the ITV Collar was a net asset of $1,003.0 million and principal borrowings outstanding under the ITV Collar Loan were $1,341.9 million.

(e)
In connection with our investment in Lionsgate, we have entered into (i) the Lionsgate Forward (as defined in note 6) and (ii) a related borrowing agreement (the Lionsgate Loan). As of March 31, 2020, the fair value of the Lionsgate Forward was a net asset of $45.5 million and principal borrowings outstanding under the Lionsgate Loan were $55.3 million.

(f)
The purchase and sale of investments are presented on a gross basis in our statement of cash flows, including those made by investment managers acting as agents on our behalf.

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:
 
Three months ended March 31,
 
2020
 
2019
 
in millions
 
 
 
 
ITV
$
(471.9
)
 
$
24.0

Lionsgate
(29.4
)
 
(0.6
)
SMAs
(10.7
)
 
—

ITI Neovision
(8.0
)
 
(4.8
)
Other
(8.0
)
 
(14.5
)
Total
$
(528.0
)
 
$
4.1
Schedule of Debt Securities
The following table sets forth the details of our debt securities as of March 31, 2020:
 
Amortized cost basis
 
Unrealized gain (loss)
 
Fair value
 
in millions
 
 
 
 
 
 
Corporate debt securities
$
643.7

 
$
(9.9
)
 
$
633.8

Commercial paper
572.1

 
0.1

 
572.2

Certificates of deposit
249.1

 
(1.4
)
 
247.7

Government bonds
206.4

 
0.5

 
206.9

Other debt securities
313.4

 
—

 
313.4

Total debt securities
$
1,984.7

 
$
(10.7
)
 
$
1,974.0


The fair value of our debt securities as of March 31, 2020 by contractual maturity are shown below (in millions):
Due in one year or less
$
1,640.2

Due in one to five years
325.5

Due in five to ten years
8.3

Total (a)
$
1,974.0

_______________

(a)
The weighted average life of our total debt securities was 0.6 years as of March 31, 2020.
Equity Method Investments

The summarized results of operations of the VodafoneZiggo JV are set forth below:
 
Three months ended March 31,
 
2020
 
2019
 
in millions
 
 
 
 
Revenue
$
1,097.1

 
$
1,093.9

Earnings (loss) before income taxes
$
124.9

 
$
(188.8
)
Net earnings (loss)
$
99.7

 
$
(150.3
)

The following table sets forth the details of our share of results of affiliates, net:
 
Three months ended March 31,
 
2020
 
2019
 
in millions
 
 
 
 
VodafoneZiggo JV (a)
$
61.1

 
$
(62.3
)
All3Media
(24.9
)
 
(3.7
)
Formula E
(1.2
)
 
(0.4
)
Other
(1.6
)
 
(4.5
)
Total
$
33.4

 
$
(70.9
)
_______________

(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 results of operations of the VodafoneZiggo JV.