Investments

3 Months Ended

Mar. 31, 2019

Investment and Other Income (Loss), Net



	Three Months Ended March 31
(in millions)	2019		2018
Equity in net income (losses) of investees, net	$	262	$	(49	)
Realized and unrealized gains (losses) on equity securities, net	214		28
Other income (loss), net	200		147
Investment and other income (loss), net	$	676	$	126



(in millions)	March 31, 2019		December 31, 2018
Equity method	$	4,960	$	4,035
Marketable equity securities	538		341
Nonmarketable equity securities	1,942		1,805
Other investments	1,805		1,796
Total investments	9,245		7,977
Less: Current investments	86		94
Noncurrent investments	$	9,159	$	7,883

Equity Method

Atairos

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 operations. We recognize our proportionate share of these gains and losses in equity in net income (losses) of investees, net. For the three months ended March 31, 2019 and 2018, we recognized our proportionate share of Atairos’ income of $374 million and $35 million, respectively. For the three months ended March 31, 2019 and 2018, we made cash capital contributions to Atairos totaling $37 million and $31 million, respectively. As of March 31, 2019 and December 31, 2018, our investment in Atairos was $3.1 billion and $2.7 billion, respectively.

Hulu

For the three months ended March 31, 2019 and 2018, we recognized our proportionate share of Hulu’s losses of $141 million and $131 million, respectively, in equity in net income (losses) of investees, net. For the three months ended March 31, 2019 and 2018, we made cash capital contributions to Hulu totaling $233 million and $114 million, respectively. As of March 31, 2019 and December 31, 2018, our investment in Hulu was $341 million and $248 million, respectively.

In August 2016, Time Warner Inc. acquired a 10% interest in Hulu, which diluted our interest in Hulu from 33% to 30%. Given the contingent nature of put and call options related to its shares, we recorded a deferred gain as a result of the dilution. In the first quarter of 2019, the put and call options expired unexercised and we recognized the previously deferred gain of $159 million in other income (loss), net.

The Weather Channel

In March 2018, we sold our investment in The Weather Channel cable network and recognized a pretax gain of $64 million in other income (loss), net.

Marketable Equity Securities

Snap

For the three months ended March 31, 2019 and 2018, we recognized unrealized gains of $162 million and $37 million, respectively, in realized and unrealized gains (losses) on equity securities, net related to our investment in Snap. As of March 31, 2019 and December 31, 2018, our investment in Snap was $324 million and $162 million, respectively.

Other Investments

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 both March 31, 2019 and December 31, 2018, our investment in AirTouch was $1.6 billion. We account for our investment in AirTouch as a held to maturity investment using the cost method. As of March 31, 2019, 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 $1.7 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.

NBCUniversal Media LLC [Member]

Investments [Line Items]

Investments