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Investments | 3 Months Ended
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Mar. 31, 2024
Investments [Abstract] |
Investments | Investments The details of our investments are set forth below:
Accounting Method |  | March 31, 2024 |  | December 31, 2023 |  | Ownership (a)
| in millions |  | %
Equity (b): |  |  |  |  |
Long-term: |  |  |  |  |
VMO2 JV | $ | 7,175.1 |  |  | $ | 7,248.5 |  |  | 50.0
VodafoneZiggo JV (c) | 1,998.5 |  |  | 2,055.4 |  |  | 50.0
AtlasEdge JV | 272.0 |  |  | 250.8 |  |  | 48.2
All3Media Ltd. (All3Media) (d) | 149.4 |  |  | 144.2 |  |  | 50.0
Formula E Holdings Ltd (Formula E) | 101.9 |  |  | 99.1 |  |  | 35.9
nexfibre JV | 67.8 |  |  | 55.9 |  |  | 25.0
Other | 125.7 |  |  | 133.7 |  |  |
Total — equity | 9,890.4 |  |  | 9,987.6 |  |  |
Fair value: |  |  |  |  |
Short-term: |  |  |  |  |
Separately-managed accounts (SMAs) (e) | 1,652.8 |  |  | 1,990.5 |  |  |
Long-term: |  |  |  |  |
Vodafone - subject to re-use rights (f) | 1,187.6 |  |  | 1,168.1 |  |  | 4.9
EdgeConneX, Inc. (EdgeConneX) | 402.8 |  |  | 318.3 |  |  | 5.2
Televisa Univision, Inc. (Televisa Univision) | 388.3 |  |  | 388.3 |  |  | 6.0
SMAs (e) | 376.7 |  |  | 285.6 |  |  |
ITV plc (ITV) | 371.9 |  |  | 321.9 |  |  | 9.9
Plume Design, Inc. (Plume) (g) | 167.3 |  |  | 168.4 |  |  | 11.5
Pax8, Inc. | 101.1 |  |  | 100.3 |  |  | 5.6
CANAL+ Polska S.A. | 75.2 |  |  | 76.4 |  |  | 17.0
Lions Gate Entertainment Corp. (Lionsgate) | 63.6 |  |  | 69.6 |  |  | 2.8
Aviatrix Systems, Inc. (Aviatrix) | 41.2 |  |  | 55.5 |  |  | 3.3
Lacework, Inc. (Lacework) | 26.6 |  |  | 94.2 |  |  | 3.3
Other | 369.6 |  |  | 361.9 |  |  |
Total — fair value | 5,224.7 |  |  | 5,399.0 |  |  |
Total investments (h) | $ | 15,115.1 |  |  | $ | 15,386.6 |  |  |
Short-term investments | $ | 1,652.8 |  |  | $ | 1,990.5 |  |  |
Long-term investments | $ | 13,462.3 |  |  | $ | 13,396.1 |  |  |
_______________ (a)Our ownership percentages are determined based on our legal ownership as of the most recent balance sheet date or are estimated based on the number of shares we own and the most recent publicly-available information. (b)Our equity method investments are originally recorded at cost and are adjusted to recognize our share of net earnings or losses of the affiliates as they occur rather than as dividend distributions are received, with our recognition of losses generally limited to the extent of our investment in, and loans and commitments to, the investee. Accordingly, the carrying values of our equity method investments may not equal the respective fair values. At March 31, 2024 and December 31, 2023, the aggregate carrying amounts of our equity method investments exceeded our proportionate share of the respective investee’s net assets by $1,213.8 million and $1,234.7 million, respectively, which primarily includes amounts associated with the VodafoneZiggo JV Receivables, as defined below, and amounts we are owed under a long-term note receivable from All3Media. (c)Amounts include certain notes receivable due from a subsidiary of the VodafoneZiggo JV to a subsidiary of Liberty Global comprising (i) a euro-denominated note receivable with a principal amount of $755.8 million and $774.5 million at March 31, 2024 and December 31, 2023, respectively, (the VodafoneZiggo JV Receivable I) and (ii) a euro-denominated note receivable with a principal amount of $224.4 million and $230.0 million at March 31, 2024 and December 31, 2023, respectively, (the VodafoneZiggo JV Receivable II and, together with the VodafoneZiggo JV Receivable I, the VodafoneZiggo JV Receivables). The VodafoneZiggo JV Receivables bear interest at 5.55% and have a final maturity date of December 31, 2030. During the three months ended March 31, 2024, interest accrued on the VodafoneZiggo JV Receivables was $13.8 million, all of which has been cash settled. (d)On February 16, 2024, Liberty Global, together with joint owner Warner Bros. Discovery, Inc., reached a definitive agreement to sell 100% of All3Media to RedBird IMI. We expect to receive approximately £315.0 million ($397.7 million) of total cash proceeds from the sale. Regulatory clearance was obtained in April 2024 and we expect the transaction to close in the second quarter of 2024. (e)Represents investments held under SMAs, which are maintained by investment managers acting as agents on our behalf. We classify, measure and report these investments, the composition of which may change from time to time, based on the underlying nature and characteristics of each security held under the SMAs. With the exception of our SMA in a leveraged structured note, all of our investments held under SMAs were classified as available-for-sale debt securities as of March 31, 2024. Our SMA held in a leveraged structured note is accounted for at fair value and the associated gains or losses are included in realized and unrealized gains (losses) due to changes in fair values of certain investments, net, in our condensed consolidated statements of operations. At March 31, 2024 and December 31, 2023, interest accrued on our debt securities, which is included in other current assets on our condensed consolidated balance sheets, was $35.2 million and $34.6 million, respectively. (f)In connection with our investment in Vodafone, we entered into a share collar (the Vodafone Collar) with respect to the Vodafone shares held by our company. The aggregate purchase price paid to acquire our investment in Vodafone was partially financed through borrowings under a secured borrowing agreement (the Vodafone Collar Loan) collateralized by the Vodafone shares. Under the terms of the Vodafone Collar, the counterparty has the right to re-use pledged Vodafone shares. At March 31, 2024 and December 31, 2023, the net fair value of our investment in Vodafone was $122.3 million and $115.5 million, respectively. (g)Our investment in Plume includes warrants with a fair value of $60.9 million and $61.3 million at March 31, 2024 and December 31, 2023, respectively. (h)The purchase and sale of investments are presented on a gross basis in our condensed consolidated statements of cash flows, including amounts associated with SMAs. Equity Method Investments The following table sets forth the details of our share of results of affiliates, net:
|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | in millions
nexfibre JV |  |  |  |  | $ | 12.4 |  |  | $ | (8.6) |
All3Media |  |  |  |  | (10.1) |  |  | 0.3 |
AtlasEdge JV |  |  |  |  | (9.1) |  |  | (10.1) |
VodafoneZiggo JV (a) |  |  |  |  | 6.6 |  |  | (35.7) |
Formula E |  |  |  |  | (4.5) |  |  | 0.2 |
VMO2 JV (b) |  |  |  |  | 0.7 |  |  | (178.5) |
Other, net |  |  |  |  | (4.0) |  |  | (6.2) |
Total |  |  |  |  | $ | (8.0) |  |  | $ | (238.6) |
_______________ (a)Represents (i) our 50% share of the results of operations of the VodafoneZiggo JV and (ii) 100% of the interest income earned on the VodafoneZiggo JV Receivables. (b)Represents (i) our 50% share of the results of operations of the VMO2 JV and (ii) 100% of the share-based compensation expense associated with Liberty Global awards granted to VMO2 JV employees who were formerly employees of Liberty Global prior to the VMO2 JV formation, as these awards remain our responsibility. VMO2 JV Pursuant to an agreement (the U.K. JV Framework Agreement), Liberty Global provides certain services to the VMO2 JV on a transitional or ongoing basis (collectively, the U.K. JV Services). The U.K. JV Services provided by Liberty Global consist primarily of (i) technology and other services and (ii) capital-related expenditures for assets that will be used by or will otherwise benefit the VMO2 JV. Liberty Global charges both fixed and variable fees to the VMO2 JV for the U.K. JV Services it provides during the term of the U.K. JV Framework Agreement. We recorded revenue from the VMO2 JV of $112.3 million and $65.8 million during the three months ended March 31, 2024 and 2023, respectively, primarily related to (a) the U.K. JV Services and (b) the sale of customer premises equipment (CPE) to the VMO2 JV at a mark-up. At March 31, 2024 and December 31, 2023, $29.4 million and $18.6 million, respectively, was due from the VMO2 JV related to the aforementioned transactions. The amounts due from the VMO2 JV, which are periodically cash settled, are included in other current assets on our condensed consolidated balance sheets. In addition, during the three months ended March 31, 2023, we received a dividend distribution from the VMO2 JV aggregating $198.3 million, which was accounted for as a return of capital for purposes of our condensed consolidated statement of cash flows. The summarized results of operations of the VMO2 JV are set forth below:
|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | in millions
Revenue |  |  |  |  | $ | 3,282.8 |  |  | $ | 3,162.7 |
Earnings (loss) before income taxes |  |  |  |  | $ | 43.0 |  |  | $ | (454.0) |
Net earnings (loss) |  |  |  |  | $ | 22.7 |  |  | $ | (352.1) |
VodafoneZiggo JV Pursuant to an agreement (the NL JV Framework Agreement), Liberty Global provides certain services to the VodafoneZiggo JV (collectively, the NL JV Services). The NL JV Services provided by Liberty Global consist primarily of (i) technology and other services and (ii) capital-related expenditures for assets that will be used by, or will otherwise benefit, the VodafoneZiggo JV. Liberty Global charges both fixed and usage-based fees to the VodafoneZiggo JV for the NL JV Services provided during the term of the NL JV Framework Agreement. We recorded revenue from the VodafoneZiggo JV of $62.1 million and $65.0 million during the three months ended March 31, 2024 and 2023, respectively, primarily related to (a) the NL JV Services and (b) the sale of CPE to the VodafoneZiggo JV at a mark-up. At March 31, 2024 and December 31, 2023, $37.6 million and $24.2 million, respectively, was due from the VodafoneZiggo JV related to the aforementioned transactions. The amounts due from the VodafoneZiggo JV, which are periodically cash settled, are included in other current assets on our condensed consolidated balance sheets. The summarized results of operations of the VodafoneZiggo JV are set forth below:
|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | in millions
Revenue |  |  |  |  | $ | 1,114.0 |  |  | $ | 1,083.4 |
Loss before income taxes |  |  |  |  | $ | (25.5) |  |  | $ | (108.9) |
Net loss |  |  |  |  | $ | (13.6) |  |  | $ | (88.1) |
Fair Value Investments The following table sets forth the details of our realized and unrealized gains (losses) due to changes in fair value, net:
|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | in millions
EdgeConneX |  |  |  |  | $ | 71.8 |  |  | $ | 11.9 |
Lacework |  |  |  |  | (67.6) |  |  | (21.4) |
ITV |  |  |  |  | 50.0 |  |  | 45.1 |
Vodafone |  |  |  |  | 48.2 |  |  | (37.4) |
SMAs |  |  |  |  | 19.3 |  |  | (14.5) |
Aviatrix |  |  |  |  | (14.3) |  |  | — |
Lionsgate |  |  |  |  | (6.0) |  |  | 34.1 |
Plume |  |  |  |  | (1.1) |  |  | (17.5) |
Other, net |  |  |  |  | 14.6 |  |  | (5.8) |
Total |  |  |  |  | $ | 114.9 |  |  | $ | (5.5) |
Debt Securities The following tables set forth a summary of our debt securities at March 31, 2024 and December 31, 2023:
| March 31, 2024
| Amortized cost basis |  | Accumulated unrealized gains |  | Fair value
| in millions
Commercial paper | $ | 903.4 |  |  | $ | 0.6 |  |  | $ | 904.0 |
Government bonds | 431.1 |  |  | (0.3) |  |  | 430.8 |
Certificates of deposit | 300.7 |  |  | — |  |  | 300.7 |
Corporate debt securities | 245.1 |  |  | (0.1) |  |  | 245.0 |
Structured note (a) | (a) |  | (a) |  | 147.0 |
Other debt securities | 2.0 |  |  | — |  |  | 2.0 |
Total debt securities | $ | 1,882.3 |  |  | $ | 0.2 |  |  | $ | 2,029.5 |
______________ (a)Amount represents an investment in a leveraged structured note issued by a third-party investment bank, which is accounted for at fair value. The return on the leveraged structured note is based on changes in the fair value of a proportionate amount of debt issued by various Liberty Global consolidated subsidiaries and affiliates (including the VMO2 JV and the VodafoneZiggo JV). The proportionate amount of debt associated with the return on the leveraged structured note may change from time to time as a result of open market purchases, privately negotiated transactions, tender offers, exchange offers, redemptions or prepayments, in each case, completed by Liberty Global consolidated subsidiaries and affiliates. While the structured note itself contains leverage, our at-risk investment is the estimated fair value as reported. During the three months ended March 31, 2024, we invested an additional $46.6 million in the leveraged structured note. At March 31, 2024, the proportionate amount of debt issued by Liberty Global consolidated subsidiaries and affiliates associated with the return on the leveraged structured note is summarized in the following table:
|  | Proportion of debt associated with the return on the leveraged structured note
Subsidiary: |  |
Sunrise Holding | 40.08 | %
Telenet | 18.62 | %
Affiliate: |  |
VMO2 JV | 21.23 | %
VodafoneZiggo JV | 20.07 | %
Total | 100.00 | %
| December 31, 2023
| Amortized cost basis |  | Accumulated unrealized gains |  | Fair value
| in millions
Commercial paper | $ | 1,066.5 |  |  | $ | (0.1) |  |  | $ | 1,066.4 |
Government bonds | 504.7 |  |  | 0.3 |  |  | 505.0 |
Certificates of deposit | 373.1 |  |  | 0.1 |  |  | 373.2 |
Corporate debt securities | 226.6 |  |  | (0.1) |  |  | 226.5 |
Structured note (a) | (a) |  | (a) |  | 95.8 |
Other debt securities | 9.2 |  |  | — |  |  | 9.2 |
Total debt securities | $ | 2,180.1 |  |  | $ | 0.2 |  |  | $ | 2,276.1 |
______________ (a)Amount represents an investment in a leveraged structured note issued by a third-party investment bank, which is accounted for at fair value. At December 31, 2023, the proportionate amount of debt issued by Liberty Global consolidated subsidiaries and affiliates associated with the return on the leveraged structured note is summarized in the following table:
|  | Proportion of debt associated with the return on the leveraged structured note
Subsidiary: |  |
Sunrise Holding | 32.91 | %
Telenet | 28.23 | %
Affiliate: |  |
VMO2 JV | 31.49 | %
VodafoneZiggo JV | 7.37 | %
Total | 100.00 | %
We received proceeds from the sale of debt securities of $1.1 billion and $2.4 billion during the three months ended March 31, 2024 and 2023, respectively, the majority of which were reinvested in new debt securities held under SMAs. The sale of debt securities resulted in realized net losses of $11.2 million and $19.2 million during the three months ended March 31, 2024 and 2023, respectively. The fair values of our debt securities as of March 31, 2024 by contractual maturity are shown below (in millions):
Due in one year or less | $ | 1,652.8 |
Due in one to five years | 329.1 |
Due in five to ten years | 47.6 |
Total (a) | $ | 2,029.5 |
_______________ (a)The weighted average life of our total debt securities was 0.8 years as of March 31, 2024. Our investment portfolio is subject to various macroeconomic pressures and has experienced significant volatility, which affects both our non-public and publicly-traded investments. Changes in the fair values of these investments, including changes with respect to interest rates within our local jurisdictions, are likely to continue and could be significant.

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- Definition The entire disclosure for investment holdings. This includes the long positions of investments for the entity. It contains investments in affiliated and unaffiliated issuers. The investments include securities and non securities (i.e. commodities and futures contracts). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 210 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478795/946-210-50-12 + Details
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