Quarterly report pursuant to Section 13 or 15(d)

Assets and Liabilities Measured at Fair Value (Tables)

v3.3.0.814
Assets and Liabilities Measured at Fair Value (Tables)
 9 Months Ended
Sep. 30, 2015
Assets and Liabilities Measured at Fair Value  
Schedule of assets and liabilities measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

 

December 31, 2014

 

 

 

 

 

 

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

 

$
626,312

 
626,312

 

 —

 
36,002

 
36,002

 

 —

 

Short-term marketable securities

 

$
9,011

 
9,011

 

 —

 
9,001

 
9,001

 

 —

 

Available-for-sale securities

    

$
424,570

    
424,570

    

 —

    
360,762

    
360,762

    

 —

 

Time Warner Cable financial instruments (1) (2)

 

$

 —

 

 —

 

 —

 
(75,356)

 

 —

 
(75,356)

 

(1)

As of December 31, 2014, the Company had an outstanding written call option on 625,000 Time Warner Cable shares with a strike price of $92.02 per share which expired in February 2015. Upon expiration, this written call option was rolled into a new written call option on 625,000 Time Warner Cable shares with a strike price of $100.39 per share which the Company cash settled during June 2015 for $48.3 million. Additionally, as of December 31, 2014, the Company had another outstanding written call option on 625,000 Time Warner Cable shares with a strike price of $90.84 per share which the Company cash settled during April 2015 for $36.7 million. No written call options on Time Warner Cable shares are outstanding as of September 30, 2015.  

(2)

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 with a put option strike price of $136.80 per share and a call option strike price of $161.62 per share. The collar was originally scheduled to expire during March 2017. The Company unwound the agreement during July 2015 for $67.1 million cash paid to the counterparty. In connection with this collar agreement, the Company also entered into a revolving loan agreement with an availability of $234 million, which was terminated upon unwinding of the collar agreement during July 2015 (note 7). 

Schedule of assumptions used to measure fair value

 

 

 

 

 

 

 

 

 

    

Range

 

Volatility

 
17.4

%

 —
25.2

%

 

Interest rate

 
0.41

%

 —
0.99

%

 

Dividend yield

 
0

%

 —
0.24

%

 

 

Schedule of realized and unrealized gains (losses) on financial instruments

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

(amounts in thousands)

 

Charter warrants (1)

    

$

NA

    
(7,976)

    

 

NA

    
15,233

 

Time Warner Cable investment and financial instruments

 

 
(23,116)

 
(4,556)

 

 
(12,091)

 
8,512

 

 

 

$
(23,116)

 
(12,532)

 

 
(12,091)

 
23,745

 

As discussed in note 5, Liberty Broadband exercised all of the Company’s outstanding warrants to purchase shares of Charter common stock during November 2014, subsequent to the completion of the Broadband Spin-Off.