Investments

6 Months Ended

Jun. 30, 2020

Investments consist of the following:



(in thousands)	June 30, 2020		December 31, 2019
SERP investments at fair value	$	2,096	$	2,278
Cost method investments	9,993		9,497
Equity method investments	572		613
Total investments	$	12,661	$	12,388

SERP Investments at Fair Value: The Supplemental Executive Retirement Plan (“SERP”) is a benefit plan that provides deferred compensation to certain employees. The Company holds the related investments in a rabbi trust as a source of funding for future payments under the plan. The SERP’s investments were designated as trading securities and will be liquidated and paid out to the participants upon retirement. The benefit obligation to participants is always equal to the value of the SERP assets under ASC 710 Compensation. Changes to the investments' fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense.

Cost Method Investments: Our investment in CoBank’s Class A common stock represented substantially all of our cost method investments with a balance of $9.2 million and $8.7 million at June 30, 2020 and December 31, 2019, respectively. We recognized

approximately $1.0 million and $0.9 million of patronage income in Other income (expense) in the three months ended June 30, 2020 and 2019, respectively, and approximately $2.0 million and $1.8 million in the six months ended June 30, 2020 and 2019, respectively. Historically, approximately 75% of the patronage distributions were in cash and 25% in equity.

Equity Method Investments: At June 30, 2020, the Company had a 20.0% ownership interest in Valley Network Partnership (“ValleyNet”). The Company and ValleyNet purchase capacity on one another’s fiber network. We recognized revenue of $0.3 million from providing service to ValleyNet during both of the three months ended June 30, 2020 and 2019, and approximately $0.5 million during both of the six months ended June 30, 2020 and 2019. We recognized cost of service of $0.6 million and $0.8 million for the use of ValleyNet’s network during the three months ended June 30, 2020 and 2019, respectively, and approximately $1.4 million and $1.5 million in the six months ended June 30, 2020 and 2019, respectively.