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Investments
 9 Months Ended
Sep. 30, 2020
Investments [Abstract]  
Investments Investments

The details of our investments are set forth below:
Accounting Method
 
September 30,
2020
 
December 31,
2019
 
in millions
Equity (a):
 
 
 
Long-term:
 
 
 
VodafoneZiggo JV (b)
$
3,241.5

 
$
3,174.1

All3Media Group (All3Media)
125.0

 
172.8

Formula E Holdings Ltd (Formula E)
93.4

 
105.2

Other
164.8

 
40.7

Total — equity
3,624.7

 
3,492.8

Fair value:
 
 
 
Short-term:
 
 
 
Separately-managed accounts (SMAs) (c)
2,549.3

 
—

Long-term:
 
 
 
SMAs (c)
439.2

 
—

ITV plc (ITV) — subject to re-use rights (d)
347.9

 
798.1

ITI Neovision S.A. (ITI Neovision)
118.2

 
122.4

Lions Gate Entertainment Corp (Lionsgate) (e)
60.2

 
68.0

Other (f)
415.1

 
300.7

Total — fair value
3,929.9

 
1,289.2

Total investments (g)
$
7,554.6

 
$
4,782.0

Short-term investments
$
2,549.3

 
$
—

Long-term investments
$
5,005.3

 
$
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 September 30, 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 $1,123.0 million and $1,041.0 million, respectively, which include amounts associated with the VodafoneZiggo JV Receivables, as defined below, and amounts we are owed under a long-term note receivable from All3Media.

(b)
Amounts include certain notes receivable due from a subsidiary of the VodafoneZiggo JV to a subsidiary of Liberty Global comprising (i) a euro-denominated note receivable with a principal amount of $820.5 million and $786.1 million, respectively (the VodafoneZiggo JV Receivable I), and (ii) a euro-denominated note receivable entered into during the third quarter of 2020 with a principal amount of $121.8 million at September 30, 2020 (the VodafoneZiggo JV Receivable II and, together with the VodafoneZiggo JV Receivable I, the VodafoneZiggo JV Receivables). The VodafoneZiggo JV Receivable I, as amended in June 2020, and the VodafoneZiggo JV Receivable II each bear interest at 5.55% and have a final maturity date of December 31, 2030. During the nine months ended September 30, 2020, interest accrued on the VodafoneZiggo JV Receivables was $34.4 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 September 30, 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)
In connection with our investment in ITV, we entered into a share collar (the ITV Collar) with respect to the ITV shares held by our company. The aggregate purchase price paid to acquire our investment in ITV was financed through borrowings under a secured borrowing agreement (the ITV Collar Loan). We may elect to use cash or the collective value of the related shares and equity-related derivative instrument to settle the ITV Collar Loan. During the third quarter of 2020, we cash settled a portion of the ITV Collar Loan and unwound the associated portion of the ITV Collar. As of September 30, 2020, (i) certain of the ITV shares our company holds remain subject to the ITV Collar and are pledged as collateral under the ITV Collar Loan and (ii) the fair value of the ITV Collar was a net asset of $712.5 million and principal borrowings outstanding under the ITV Collar Loan were $949.1 million.

(e)
In connection with our investment in Lionsgate, we previously entered into (i) the Lionsgate Forward (as defined in note 6) and (ii) a related borrowing agreement (the Lionsgate Loan), each of which were fully settled during the third quarter of 2020, as further described in note 6.

(f)
As of September 30, 2020, we hold a $9.2 million noncontrolling junior interest in receivables we have securitized.

(g)
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 September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
 
in millions
 
 
 
 
 
 
 
 
ITV
$
(20.5
)
 
$
70.2

 
$
(450.2
)
 
$
(17.6
)
Lionsgate
13.1

 
(15.9
)
 
(7.8
)
 
(33.7
)
SMAs
(0.3
)
 
—

 
5.6

 
—

ITI Neovision
(2.2
)
 
0.2

 
(4.1
)
 
0.7

Other, net
(12.7
)
 
4.5

 
47.5

 
(14.6
)
Total
$
(22.6
)
 
$
59.0

 
$
(409.0
)
 
$
(65.2
)


Debt Securities

We determine the appropriate classification of our investments in debt securities at the time of purchase, and reevaluate such determinations at each balance sheet date. All of our debt securities are classified as available for sale and are reported at fair value, and any changes in fair value are reported in realized and unrealized gains or losses due to changes in fair value of certain investments and debt, net, in our consolidated statement of operations. In addition, any interest received on our debt securities is reported as interest income in our consolidated statement of operations. All costs directly associated with the acquisition of debt securities are expensed as incurred. We classify our government bonds within Level 1 of the fair value hierarchy and our corporate debt securities, commercial paper and certificates of deposit within Level 2 of the fair value hierarchy. For further information regarding our fair value measurements, see note 7.
 
The following table sets forth the details of our debt securities as of and for the nine months ended September 30, 2020:
 
Amortized cost basis
 
Unrealized gains
 
Fair value
 
in millions
 
 
 
 
 
 
Government bonds
$
998.8

 
$
0.5

 
$
999.3

Corporate debt securities
786.6

 
3.2

 
789.8

Commercial paper
773.1

 
0.9

 
774.0

Certificates of deposit
333.9

 
0.2

 
334.1

Other debt securities
91.3

 
—

 
91.3

Total debt securities
$
2,983.7

 
$
4.8

 
$
2,988.5


During the three and nine months ended September 30, 2020, we received proceeds from the sale of debt securities of $1.3 billion and $3.8 billion, respectively, the majority of which were reinvested in new debt securities held under SMAs. The sale of debt securities during the three and nine months ended September 30, 2020 resulted in realized net gains of $0.1 million and $0.8 million, respectively.

The fair value of our debt securities as of September 30, 2020 by contractual maturity are shown below (in millions):
Due in one year or less
$
2,549.3

Due in one to five years
432.2

Due in five to ten years
7.0

Total (a)
$
2,988.5

_______________

(a)
The weighted average life of our total debt securities was 0.5 years as of September 30, 2020.

Equity Method Investments

The following table sets forth the details of our share of results of affiliates, net:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
 
in millions
 
 
 
 
 
 
 
 
All3Media
$
(0.3
)
 
$
(11.5
)
 
$
(40.1
)
 
$
(34.2
)
VodafoneZiggo JV (a)
(6.8
)
 
(21.8
)
 
(34.9
)
 
(124.1
)
Formula E
(17.4
)
 
1.2

 
(16.7
)
 
(8.7
)
Other
(2.6
)
 
(0.7
)
 
(7.4
)
 
(6.0
)
Total
$
(27.1
)
 
$
(32.8
)
 
$
(99.1
)
 
$
(173.0
)
_______________

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

VodafoneZiggo JV. Pursuant to an agreement (the Framework Agreement), Liberty Global provides certain services to the VodafoneZiggo JV (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. We recorded revenue from the VodafoneZiggo JV of $47.2 million and $66.1 million during the three months ended September 30, 2020 and 2019, respectively, and $135.3 million and $156.1 million during the nine months ended September 30, 2020 and 2019, respectively, primarily related to (a) the JV Services and (b) sales of customer premises equipment at a mark-up. In addition, during the nine months ended September 30, 2019, we purchased certain assets on the VodafoneZiggo JV’s behalf with an aggregate cost of $15.5 million. At September 30, 2020 and December 31, 2019, $26.4 million and $19.3 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 condensed consolidated balance sheets.

The summarized results of operations of the VodafoneZiggo JV are set forth below:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
 
in millions
 
 
 
 
 
 
 
 
Revenue
$
1,166.7

 
$
1,096.9

 
$
3,345.4

 
$
3,275.3

Loss before income taxes
$
(31.6
)
 
$
(83.7
)
 
$
(58.5
)
 
$
(407.0
)
Net loss
$
(25.6
)
 
$
(68.0
)
 
$
(111.3
)
 
$
(322.3
)