Quarterly report pursuant to Section 13 or 15(d)

Investments In Available-For-Sale Securities And Other Cost Investments Investments In Available-For-Sale Securities And Other Cost Investments (Notes)

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Investments In Available-For-Sale Securities And Other Cost Investments Investments In Available-For-Sale Securities And Other Cost Investments (Notes)
9 Months Ended
Sep. 30, 2014
Investments in Available-for-Sale Securities and Other Cost Investments [Abstract]  
Investments in Available-for-Sale Securities and Other Cost Investments

(5)   Investments in Available-for-Sale Securities and Other Cost Investments

All marketable equity and debt securities held by the Company are classified as available-for-sale ("AFS") and are carried at fair value generally based on quoted market prices. GAAP permits entities to choose to measure many financial instruments, such as AFS securities, and certain other items at fair value and to recognize the changes in fair value of such instruments in the entity's statement of operations (the "fair value option"). The Company previously entered into economic hedges for certain of its non-strategic AFS securities (although such instruments were not accounted for as fair value hedges by the Company). Changes in the fair value of these economic hedges were reflected in the Company's statement of operations as unrealized gains (losses). In order to better match the changes in fair value of the subject AFS securities and the changes in fair value of the corresponding economic hedges in the Company's financial statements, the Company elected the fair value option for those of its AFS securities which it considers to be non-strategic ("Fair Value Option Securities"). Accordingly, changes in the fair value of Fair Value Option Securities, as determined by quoted market prices, are reported in realized and unrealized gains (losses) on financial instruments in the accompanying condensed consolidated statements of operations.

Investments in AFS securities, including Fair Value Option Securities separately aggregated, and other cost investments are summarized as follows:

 

 

 

 

 

 

 

 

 

    

September 30,

    

December 31,

 

 

 

2014

 

2013

 

 

 

amounts in millions

 

Fair Value Option Securities

 

 

 

 

 

 

Time Warner, Inc. (a)

 

$

320 

 

297 

 

Time Warner Cable, Inc. (a)

 

 

339 

 

320 

 

Viacom, Inc. (a)

 

 

279 

 

317 

 

Barnes & Noble, Inc. (b)

 

 

25 

 

255 

 

Other equity securities

 

 

47 

 

37 

 

Other debt securities

 

 

27 

 

27 

 

Total Fair Value Option Securities

 

 

1,037 

 

1,253 

 

AFS and cost investments

 

 

 

 

 

 

Live Nation Entertainment, Inc. ("Live Nation") debt securities

 

 

24 

 

24 

 

Other AFS and cost investments

 

 

38 

 

47 

 

Total AFS and cost investments

 

 

62 

 

71 

 

 

 

$

1,099 

 

1,324 

 

 


(a)

See note 8 for details regarding the number and fair value of shares pledged as collateral pursuant to certain margin loan agreements as of September 30, 2014.

(b)

In April 2014 Liberty reduced its overall ownership interest in Barnes & Noble, Inc. to less than 2% through the sale of approximately 90% of the preferred stock held by Liberty as of such date for $247 million in proceeds.

Unrealized Holding Gains and Losses

Unrealized holding gains and losses related to investments in AFS securities are summarized below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

December 31, 2013

 

 

    

Equity

    

Debt

    

Equity

    

Debt

 

 

 

securities

 

securities

 

securities

 

securities

 

 

 

amounts in millions

 

Gross unrealized holding gains

 

$

 

 

 

 

Gross unrealized holding losses

 

$