Quarterly report pursuant to Section 13 or 15(d)

Assets and Liabilities Measured at Fair Value (Tables)

v3.19.3
Assets and Liabilities Measured at Fair Value (Tables)
9 Months Ended
Sep. 30, 2019
Assets and Liabilities Measured at Fair Value  
Schedule of assets and liabilities measured at fair value

September 30, 2019

December 31, 2018

 

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

$

36,459

36,459

67,329

67,329

Derivative instruments (1)

$

45,897

 

 

45,897

 

 

 

(1) As of September 30, 2019, the Company had an outstanding zero-strike call option on 460,675 shares of Liberty Broadband Series C common stock. The Company paid a premium of $46.3 million in September 2019 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, which is recorded at fair value.
Schedule of fair value inputs

 

Range

Volatility

 

22.0

%

-

22.0

%

Interest rate

 

2.1

%

-

2.1

%

Dividend yield

 

0

%

-

0

%

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

Three months ended

Nine months ended

 

September 30,

September 30,

 

2019

2018

2019

2018

 

(amounts in thousands)

 

Derivative instruments (1)

$

(433)

5,678

(433)

3,659

$

(433)

5,678

(433)

 

3,659

(1) In April 2018, the Company entered into a 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. In September 2019, the Company entered into a zero-strike call option on 460,675 shares of Liberty Broadband Series C common stock and prepaid a premium of $46.3 million.