Quarterly report pursuant to Section 13 or 15(d)

Investments In Available-For-Sale Securities And Other Cost Investments

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Investments In Available-For-Sale Securities And Other Cost Investments
6 Months Ended
Jun. 30, 2017
Investments in Available-for-Sale Securities and Other Cost Investment  
Investments in Available-for-Sale Securities and Other Cost Investments

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

All marketable equity 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 has 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:

 

 

 

 

 

 

 

 

 

    

June 30,

    

December 31,

 

 

 

2017

 

2016

 

 

 

amounts in millions

 

Liberty SiriusXM Group

 

 

 

 

 

 

Fair Value Option Securities

 

 

 

 

 

 

Pandora (a)

 

$

173

 

 —

 

Total attributed Liberty SiriusXM Group

 

 

173

 

 —

 

 

 

 

 

 

 

 

Braves Group

 

 

 

 

 

 

Other AFS and cost investments

 

 

 8

 

 8

 

Total attributed Braves Group

 

 

 8

 

 8

 

 

 

 

 

 

 

 

Formula One Group

 

 

 

 

 

 

Fair Value Option Securities

    

 

 

    

 

 

Time Warner (b)

 

 

427

 

411

 

Viacom (c)

 

 

62

 

65

 

Other equity securities

 

 

19

 

13

 

Total Fair Value Option Securities

 

 

508

 

489

 

AFS and cost investments

 

 

 

 

 

 

Formula 1 (d)

 

 

 —

 

759

 

Other AFS and cost investments

 

 

61

 

53

 

Total AFS and cost investments

 

 

61

 

812

 

Total attributed Formula One Group

 

 

569

 

1,301

 

 

 

 

 

 

 

 

Consolidated Liberty

 

$

750

 

1,309

 


(a)

On June 9, 2017, a subsidiary of SIRIUS XM entered into an agreement to purchase $480 million in newly issued Series A convertible preferred stock of Pandora. Pandora operates an internet-based music discovery platform, offering a personalized experience for listeners. SIRIUS XM purchased $172.5 million of Series A preferred stock upon execution of the agreement and has agreed to purchase the balance of the Series A preferred stock at a second closing. Upon completion of the second closing, the Series A preferred stock would represent a 19% interest in Pandora's currently outstanding common stock and a 16% interest on an as-converted basis. The investment includes a mandatory redemption feature on any date after the fifth anniversary of the second closing and therefore the financial instrument has been treated as a debt security. SIRIUS XM has elected to account for this investment under the fair value option.

(b)

See note 10 for details regarding the number and fair value of shares pledged as collateral pursuant to the Braves Holdings mixed-use development facility as of June 30, 2017.

(c)

See note 10 for details regarding the number and fair value of shares pledged as collateral pursuant to the Live Nation Margin Loan as of June 30, 2017.

(d)

See note 3 for details regarding the Company’s acquisition of Formula 1 during the six months ended June 30, 2017.

 

 

 

 

 

Unrealized Holding Gains and Losses

There were no unrealized holding gains and losses related to investments in AFS securities as of June 30, 2017 or December 31, 2016