Investments



(in millions)	March 31, 2017		December 31, 2016
Fair Value Method:
Snap	$	662	$	—
Other	161		198
	823		198
Equity Method:
Atairos	1,624		1,601
Hulu	171		225
Other	631		550
	2,426		2,376
Cost Method:
AirTouch	1,602		1,599
BuzzFeed	400		400
Other	698		771
	2,700		2,770
Total investments	5,949		5,344
Less: Current investments	11		97
Noncurrent investments	$	5,938	$	5,247

Investment Income (Loss), Net



	Three Months Ended March 31
(in millions)	2017			2016
Gains (losses) on sales and exchanges of investments, net	$	(1	)	$	2
Investment impairment losses	(4		)	(20		)
Interest and dividend income	33			29
Other, net	31			19
Investment income (loss), net	$	59		$	30

Fair Value Method

Snap

In March 2017, we acquired an interest in Snap Inc. for $500 million as part of its initial public offering, which we have classified as available for sale. Snap is a camera company whose primary product is Snapchat, a camera app that was created to help people communicate through short videos and images.

Equity Method

Atairos

For the three months ended March 31, 2017, we made cash capital contributions totaling $457 million to Atairos Group, Inc., which included amounts accrued as of December 31, 2016. Atairos follows investment company accounting and records its investments at their fair values each reporting period with the net gains or losses reflected in its statement of income. We recognize our share of these gains and losses in equity in net income (losses) of investees, net. For the three months ended March 31, 2017, we recognized our share of Atairos income of $57 million. For the three months ended March 31, 2016, we recognized our share of Atairos losses of $15 million.

The Weather Channel

In January 2016, following a legal restructuring at The Weather Channel, we and the other investors sold the entity holding The Weather Channel’s product and technology businesses to IBM. Following the close of the transaction, we continue to hold an investment in The Weather Channel cable network through a new holding company. As a result of the sale of our investment, we recognized a pretax gain of $108 million in other income (expense), net for the three months ended March 31, 2016.

Cost Method

AirTouch

We hold two series of preferred stock of Verizon Americas, Inc., formerly known as AirTouch Communications, Inc. (“AirTouch”), a subsidiary of Verizon Communications Inc., which are redeemable in April 2020. As of March 31, 2017, the estimated fair value of the AirTouch preferred stock and the estimated fair value of the associated liability related to the redeemable subsidiary preferred shares issued by one of our consolidated subsidiaries were each $1.8 billion. The estimated fair values are based on Level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.

Investments



(in millions)	March 31, 2017		December 31, 2016
Fair Value Method:
Snap	$	662	$	—
Other	7		6
	669		6
Equity Method:
Hulu	171		225
Other	400		336
	571		561
Cost Method:
BuzzFeed	400		400
Other	300		296
	700		696
Total investments	$	1,940	$	1,263

Fair Value Method

Snap

In March 2017, Comcast acquired an interest in Snap Inc. as part of its initial public offering. On March 31, 2017, Comcast contributed its investment in Snap to us as an equity contribution which was recorded in our condensed consolidated statement of equity based on the fair value of the investment as of March 31, 2017. We have classified our investment as available for sale. Snap is a camera company whose primary product is Snapchat, a camera app that was created to help people communicate through short videos and images.

Equity Method

The Weather Channel

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details