Quarterly report pursuant to Section 13 or 15(d)

Investments in Available-for-Sale Securities

Investments in Available-for-Sale Securities
6 Months Ended
Jun. 30, 2015
Investments in Available-for-Sale Securities  
Investments in Available-for-Sale Securities

(4) Investments in Available-for-Sale Securities

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 statements of operations. The Company has elected to account for those of its AFS securities which it considers to be nonstrategic (“Fair Value Option Securities”) at fair value. 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 our interest in Time Warner Cable which is our only Fair Value Option Security, are summarized as follows:










June 30,


December 31,










(amounts in thousands)


Time Warner Cable (a)







Other equity securities







Total investments in available-for-sale securities








As discussed in note 3, on March 27, 2015, Liberty Broadband entered into a cashless collar agreement with a financial institution on 1.7 million Time Warner Cable shares held by the Company. In connection with this collar agreement, the Company also entered into a revolving loan agreement, pursuant to which the Company drew $40 million during April 2015. 1.7 million shares of Time Warner Cable were pledged as collateral to borrowings outstanding under this loan (note 7). The Company unwound the collar agreement and corresponding revolving loan agreement during July 2015 and the shares of Time Warner Cable pledged as collateral to the revolving loan agreement were released.

Unrealized Holding Gains and Losses

As of June 30, 2015 and December 31, 2014, the gross unrealized holding gains related to investments in AFS securities were $223 thousand and $820 thousand, respectively. There were no gross unrealized holding losses related to investment in AFS securities for the periods presented.