Quarterly report pursuant to Section 13 or 15(d)

Investments in Affiliates Accounted for Using the Equity Method

v3.20.1
Investments in Affiliates Accounted for Using the Equity Method
 3 Months Ended
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Affiliates Accounted for Using the Equity Method Investments in Affiliates Accounted for Using the Equity Method
The Company has various investments accounted for using the equity method. The following table includes the Company’s carrying amount and percentage ownership of the more significant investments in affiliates at March 31, 2020 and the carrying amount at December 31, 2019:
March 31, 2020 December 31, 2019
Percentage
ownership
Market
value
Carrying
amount
Carrying
amount
dollars in thousands
LendingTree (a) 26.4  % $ 631,593    $ 165,446    166,465   
Other various NA 1,119    1,178   
$ 166,565    167,643   
(a) Both the Company's ownership interest in LendingTree and the Company's share of LendingTree's earnings (losses) are reported on a three month lag. The market value disclosed is as of March 31, 2020.
The Company’s share of LendingTree’s earnings (losses) was $(0.8) million and $2.1 million for the three months ended March 31, 2020 and 2019, respectively.

Investment in Liberty Broadband

As of March 31, 2020, the Company has a 23.5% economic ownership interest in Liberty Broadband. Due to overlapping boards of directors and management, the Company has been deemed to have significant influence over Liberty Broadband for accounting purposes, even though the Company does not have any voting rights. The Company has elected to apply the fair value option for its investment in Liberty Broadband (Level 1) as it is believed that investors value this investment based on the trading price of Liberty Broadband. The Company recognizes changes in the fair value of its investment in Liberty Broadband in realized and unrealized gains (losses) on financial instruments, net in the accompanying condensed consolidated statements of operations. Summarized financial information for Liberty Broadband is as follows:
March 31, December 31,
2020 2019
amounts in thousands
Current assets $ 21,022    52,133   
Investment in Charter, accounted for using the equity method 12,194,726    12,194,674   
Other assets 9,406    9,535   
Total assets 12,225,154    12,256,342   
Long-term debt 573,269    572,944   
Deferred income tax liabilities 992,704    999,757   
Other liabilities 12,210    15,695   
Equity 10,646,971    10,667,946   
Total liabilities and shareholders' equity $ 12,225,154    12,256,342   
Three months ended
March 31,
2020 2019
amounts in thousands
Revenue $ 4,104    3,458   
Operating expenses, net (11,379)   (9,659)  
Operating income (loss) (7,275)   (6,201)  
Share of earnings (losses) of affiliates 61,682    34,849   
Gain (loss) on dilution of investment in affiliate (59,325)   (41,403)  
Other income (expense), net (5,698)   (6,120)  
Income tax benefit (expense) 2,774    4,574   
Net earnings (loss) $ (7,842)   (14,301)