Quarterly report pursuant to Section 13 or 15(d)

Assets and Liabilities Measured at Fair Value (Tables)

v3.10.0.1
Assets and Liabilities Measured at Fair Value (Tables)
9 Months Ended
Sep. 30, 2018
Assets and Liabilities Measured at Fair Value  
Schedule of assets and liabilities measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

December 31, 2017

 

 

 

 

 

 

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

 

$

28,335

 

28,335

 

 —

 

76,304

 

76,304

 

 —

 

Derivative instruments (1)

 

$

50,000

 

 —

 

50,000

 

 —

 

 —

 

 —

 


(1)

As of September 30, 2018, the Company had an outstanding zero-strike call option on 621,920 shares of Liberty Broadband Series C common stock. The Company paid a premium of $48.6 million in August 2018 for the zero-strike call option. The Company accounted for the zero-strike call option as a financial instrument asset due to its settlement provisions.

 

Schedule of fair value inputs

 

 

 

 

 

 

 

 

 

Range

Volatility

 

20.2

%

-

38.0

%

Interest rate

 

1.0

%

-

2.3

%

Dividend yield

 

0

%

-

0

%

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2018

 

2017

 

2018

 

2017

 

 

 

(amounts in thousands)

 

Derivative instruments (1)

 

 

5,678

 

2,675

 

 

3,659

 

5,026

 

 

 

$

5,678

 

2,675

 

 

3,659

 

5,026

 


In April 2018, the Company entered into another zero-strike call option on 610,325 shares of Liberty Broadband Series C common stock and prepaid a premium of $47.8 million. Liberty Broadband exercised its option to settle the contract in cash in June 2018 for cash proceeds of $46.5 million, and recognized a realized loss on the options as of June 30, 2018. In June 2018, the Company entered into another zero-strike call option on 632,911 shares of Liberty Broadband Series C common stock. Upon expiration, the zero-strike call option was rolled into a new zero-strike call option on 621,920 shares of Liberty Broadband Series C common stock and the Company prepaid a premium of $48.6 million in August 2018. The Company recognized a realized and unrealized gain upon expiration of the option in August 2018 and recognized an unrealized gain on the outstanding option as of September 30, 2018.