June 30, 2017

December 31, 2016

Quoted prices

Significant

Quoted prices

Significant

in active

other

in active

other

markets for

observable

markets for

observable

identical assets

inputs

identical assets

inputs

Description

Total

(Level 1)

(Level 2)

Total

(Level 1)

(Level 2)

(amounts in thousands)

Cash equivalents

$

189,606

189,606

 —

198,011

198,011

 —

Derivative instruments (1)(2)

$

51,086

 —

51,086

49,019

 —

49,019

(1)

As of December 31, 2016, the Company had an outstanding zero-strike call option on 704,908 shares of Liberty Broadband Series C common stock which expired in March 2017. The Company prepaid a premium of $47.9 million in December 2016. Liberty Broadband exercised its option to settle the contract in cash in March 2017 for cash proceeds of $50.0 million. The Company accounted for the zero-strike call option as a financial instrument asset due to its settlement provisions. 

(2)

In April 2017, the Company entered into another zero-strike call option on 600,242 shares of Liberty Broadband Series C common stock. The Company prepaid a premium of $50.0 million in April 2017. Upon expiration in June 2017, the $51.9 million of cash proceeds the Company received on the call option was used, in part, to prepay a premium of $51.6 million on a new zero-strike call option on 600,242 shares of Liberty Broadband Series C common stock. The new zero-strike call option will expire in August 2017.  Liberty Broadband has the option to settle in cash or shares of Liberty Broadband Series C common stock upon expiration of the contract.  The Company accounted for the zero-strike call option as a financial instrument asset due to its settlement provisions.

Three months ended

Six months ended

June 30,

June 30,

2017

2016

2017

2016

(amounts in thousands)

Time Warner Cable investment (1)

$

 —

47,985

 —

92,990

Derivative instruments (2) (3)

1,370

 —

2,351

 —

$

1,370

47,985

2,351

92,990

(1)

As discussed in note 4, Time Warner Cable merged with Charter on May 18, 2016.  Therefore the Company no longer has an investment in Time Warner Cable as of May 18, 2016, and the unrealized gain (loss) related to our investment in Time Warner Cable is recorded through this date. In connection with the merger, the Company exchanged, in a tax-free transaction, its shares of Time Warner Cable for shares of Charter Class A common stock.

(2)

As of December 31, 2016, the Company had an outstanding zero-strike call option on 704,908 shares of Liberty Broadband Series C common stock which expired in March 2017. Liberty Broadband exercised its option to settle the contract in cash in March 2017.

(3)

In April 2017, the Company entered into another zero-strike call option on 600,242 shares of Liberty Broadband Series C common stock. The Company prepaid a premium of $50.0 million in April 2017. Upon expiration in June 2017, the call option was rolled into a new zero-strike call option on 600,242 shares of Liberty Broadband Series C common stock.  The Company recognized a realized and unrealized gain on the option as of June 30, 2017.