Investments (Notes)

12 Months Ended

Dec. 31, 2019

Investments consisted of the following as of December 31, 2019 and 2018:



	December 31,
	2019		2018
Equity-method investments	$	309	$	454
Other investments	21		22
Total investments	$	330	$	476

The Company’s equity-method investments consist of investments in companies that develop sports programming services, develop applications to improve the security, control and privacy of connected devices in homes and businesses for broadband network operators, distribute multi-video programs to national advertisers, provide programming on a video on demand, pay-per-view and subscription basis and develop and deploy cloud-based software video user interfaces.

The Company's equity-method investments balances reflected in the table above includes differences between the acquisition date fair value of certain investments acquired and the underlying equity in the net assets of the investee, referred to as a basis difference. This basis difference is amortized as a component of equity earnings. The remaining unamortized basis difference was $203 million and $396 million as of December 31, 2019 and 2018, respectively.

The Company applies the equity method of accounting to these and other less significant equity-method investments, all of which are recorded in other noncurrent assets in the consolidated balance sheets as of December 31, 2019 and 2018. For the years ended December 31, 2019, 2018 and 2017, net losses from equity-method investments were $137 million, $77 million and $18 million, respectively, which were recorded in other expense, net in the consolidated statements of operations. Net losses from equity-method investments for the years ended December 31, 2019 and 2018 included impairments on equity investments of approximately $121 million and $58 million, respectively.

Real Estate Investments through Variable Interest Entities

In July 2018, the Company's build-to-suit lease arrangement with a single-asset special purpose entity ("SPE") to build a new Charter headquarters in Stamford, Connecticut obtained all approvals and was made effective. The SPE obtained a first-lien mortgage note to finance the construction with fixed monthly payments through July 15, 2035 with a 5.612% coupon interest rate. All payments of the mortgage note are guaranteed by Charter. The initial term of the lease is 15 years commencing August 1, 2020, with no termination options. At the end of the lease term there is a mirrored put option for the SPE to sell the property to Charter and call option for Charter to purchase the property for a fixed purchase price. As the Company has determined the SPE is a VIE of which it became the primary beneficiary upon the effectiveness of the arrangement, the Company has consolidated the assets and liabilities of the SPE in its consolidated balance sheet as of December 31, 2019 and 2018 as follows.



	December 31,
	2019		2018
Assets
Current assets	$	—	$	2
Restricted cash	$	66	$	214
Property, plant and equipment	$	295	$	130
Liabilities
Current liabilities	$	11	$	—
Other long-term liabilities	$	350	$	346

Property, plant and equipment includes land, a parking garage and building construction costs, including the capitalization of qualifying interest. As of December 31, 2019 and 2018, other long-term liabilities include $339 million and $342 million, respectively, in VIE's mortgage note liability and $11 million and $4 million, respectively, in liability-classified noncontrolling interest recorded at amortized cost with accretion towards settlement of the put/call option in the lease.

The consolidated statement of cash flows for the year ended December 31, 2019 includes a decrease to restricted cash of $148 million primarily related to building construction costs. The consolidated statement of cash flows for the year ended December 31, 2018 includes an increase to restricted cash of $214 million as a result of activity in the VIE including borrowings of $342 million by the VIE on the mortgage note liability offset by distributions by the VIE to the noncontrolling interest of $107 million for the contributed land and parking garage and $21 million incurred by the VIE for building construction costs.

In October 2017, the Company acquired a defaulted mortgage loan issued to a single-asset SPE. The consolidated statement of cash flows for the year ended December 31, 2017 includes $105 million related to the acquisition of the mortgage loan. As the Company has determined the SPE is a VIE of which it is the primary beneficiary, the Company has consolidated the assets and liabilities of the SPE in its consolidated balance sheet which are primarily comprised of the building securing the mortgage loan.