Investments

12 Months Ended

Dec. 31, 2019

Investments consist of the following:



(in thousands)	December 31, 2019		December 31, 2018
SERP Investments at fair value	2,278		1,779
Cost method investments	9,497		8,487
Equity method investments	613		522
Total investments	$	12,388	$	10,788

SERP Investments at Fair Value: As noted above, the SERP’s investments were designated as trading securities and will be liquidated and paid out to the participants following their retirement. Changes to the investments’ fair value are presented in Other income (expense). The SERP’s investments are held in index funds for which the net asset value is used as a practical expedient for fair value.

Cost Method Investments: Our investment in CoBank’s Class A common stock represented substantially all of our cost method investments with a balance of $8.7 million and $7.7 million at December 31, 2019 and 2018, respectively. We invested in the CoBank cooperative in connection with our Credit Facility discussed in Note 9, Long-Term Debt. We receive equity-based patronage distributions in the form of both equity and cash, which are recognized in Other income (expense) and totaled $4.2 million in 2019 and $2.8 million in both 2018 and 2017. Historically, approximately 75% of the patronage distributions are received in cash and 25% in additional shares of common stock. Information regarding investments carried at cost is reviewed for evidence of impairment. Impairments, if any, are charged to earnings and a new cost basis for the investment is established.

Equity Method Investments: We hold small investments in certain partnerships and unconsolidated corporations where the Company can exert significant influence. At December 31, 2019, the Company had a 23.2% ownership interest in Virginia Independent Telephone Alliance and 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 $1.0 million, $1.7 million, and $2.2 million from providing service to ValleyNet during 2019, 2018, and 2017, respectively. We recognized Cost of service of $3.0 million, $3.4 million, and $3.7 million for the use of ValleyNet’s network during 2019, 2018, and 2017, respectively.