14. EQUITY

Preferred Stock

5,000,000 shares of Preferred Stock were authorized as at March 31, 2018 and December 31, 2017.

One share of Series A Convertible Preferred Stock (the "Series A Preferred Share") was issued and outstanding as at March 31, 2018 and December 31, 2017. The Series A Preferred Share is convertible into 11,211,449 shares of Class A common stock on the date that is 61 days after the date on which the ownership of our outstanding shares of Class A common stock by a group that includes TW Investor and its affiliates would not be greater than 49.9%. The Series A Preferred Share is entitled to one vote per each share of Class A common stock into which it is convertible and has such other rights, powers and preferences, including potential adjustments to the number of shares of Class A common stock to be issued upon conversion, as are set forth in the Certificate of Designation for the Series A Preferred Share.

200,000 shares of Series B Preferred Shares were issued and outstanding as at March 31, 2018 and December 31, 2017 (see Note 13, "Convertible Redeemable Preferred Shares"). As of March 31, 2018, the 200,000 Series B Preferred Shares were convertible into approximately 110.2 million shares of Class A common stock.

Class A and Class B Common Stock

440,000,000 shares of Class A common stock and 15,000,000 shares of Class B common stock were authorized as at March 31, 2018 and December 31, 2017. The rights of the holders of Class A common stock and Class B common stock are identical except for voting rights. The shares of Class A common stock are entitled to one vote per share and the shares of Class B common stock are entitled to ten votes per share. Shares of Class B common stock are convertible into shares of Class A common stock on a one-for-one basis for no additional consideration. Holders of each class of shares are entitled to receive dividends and upon liquidation or dissolution are entitled to receive all assets available for distribution to holders of our common stock. Under our bye-laws, the holders of each class have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares.

There were 148.2 million and 145.5 million shares of Class A common stock outstanding at March 31, 2018 and December 31, 2017, respectively, and no shares of Class B common stock outstanding at March 31, 2018 or December 31, 2017.

As at March 31, 2018, TW Investor owns 41.4% of the outstanding shares of Class A common stock and has a 45.5% voting interest in the Company due to its ownership of the Series A Preferred Share.

On April 25, 2018, Time Warner and TW Investor exercised their warrants to acquire 100,926,996 shares of Class A Common Stock at US$ 1.00 per share (see Note 22, "Subsequent Events").

Warrants

On May 2, 2014, we issued 114,000,000 warrants in connection with a rights offering. Each warrant may be exercised until May 2, 2018 and entitles the holder thereof to receive one share of our Class A common stock at an exercise price of US$ 1.00 per share in cash. During the three months ended March 31, 2018, 2,280,936 warrants were exercised resulting in net proceeds to us of approximately US$ 2.3 million. As at March 31, 2018, 103,573,640 warrants remained outstanding. Time Warner and TW Investor collectively held 100,926,996 of these warrants, all of which were exercised on April 25, 2018 (see Note 22, "Subsequent Events"). The warrants are classified in additional paid-in capital, a component of equity, and are not subject to subsequent revaluation.

Accumulated Other Comprehensive Loss

The movement in accumulated other comprehensive loss during the three months ended March 31, 2018 comprised the following:



	Currency translation adjustment, net			Unrealized (loss) / gain on derivative instruments designated as hedging instruments			TOTAL Accumulated Other Comprehensive Loss
BALANCE December 31, 2017	$	(184,256	)	$	(3,182	)	$	(187,438	)
Other comprehensive income / (loss) before reclassifications:
Foreign exchange gain on intercompany loans ⁽¹⁾	1,531			—			1,531
Foreign exchange gain on the Series B Preferred Shares	7,151			—			7,151
Currency translation adjustment	3,311			—			3,311
Change in the fair value of hedging instruments	—			(731		)	(731		)
Amounts reclassified from accumulated other comprehensive loss:
Changes in fair value reclassified to interest expense	—			621			621
Changes in fair value reclassified to other non-operating income, net ⁽²⁾	—			301			301
Net other comprehensive income	11,993			191			12,184
BALANCE March 31, 2018	$	(172,263	)	$	(2,991	)	$	(175,254	)


⁽¹⁾	Represents foreign exchange gains on intercompany loans that are of a long-term investment nature which are reported in the same manner as translation adjustments.

⁽²⁾

We expect to repay a portion of the 2019 Euro Term Loan with the expected proceeds from the Divestment Transaction (see Note 5, "Long-term Debt and Other Financing Arrangements"). This anticipated reduction of principal amounts owing in respect of the 2019 Euro Term Loan will reduce future interest payments that the interest rate swap maturing on November 1, 2019 is designed to hedge. To maintain the effectiveness of the interest rate swap, we have dedesignated a portion to align the notional amount of the instrument with the 2019 Euro Term Loan principal we expect to remain after the application of Divestment Transaction proceeds. For the dedesignated portion, all changes in fair value and those previously recognized in accumulated other comprehensive income / loss are recognized in other non-operating income, net in our condensed consolidated statements of operations and comprehensive income / loss (see Note 12, "Financial Instruments and Fair Value Measurements").