Investments in Affiliates Accounted for Using the Equity Method

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investments in Affiliates Accounted for Using the Equity Method

Investments in Affiliates Accounted for Using the Equity Method

The Company has various investments accounted for using the equity method. The following table includes the Company’s carrying amount and percentage ownership of the more significant investments in affiliates at March 31, 2020 and the carrying amount at December 31, 2019:

	March 31, 2020						December 31, 2019
	Percentage ownership		Market value		Carrying amount		Carrying amount
			dollars in thousands
LendingTree (a)	26.4	%	$	631,593	$	165,446	166,465
Other	various		NA		1,119		1,178
					$	166,565	167,643
(a) Both the Company's ownership interest in LendingTree and the Company's share of LendingTree's earnings (losses) are reported on a three month lag. The market value disclosed is as of March 31, 2020.

The Company’s share of LendingTree’s earnings (losses) was $(0.8) million and $2.1 million for the three months ended March 31, 2020 and 2019, respectively.

Investment in Liberty Broadband

As of March 31, 2020, the Company has a 23.5% economic ownership interest in Liberty Broadband. Due to overlapping boards of directors and management, the Company has been deemed to have significant influence over Liberty Broadband for accounting purposes, even though the Company does not have any voting rights. The Company has elected to apply the fair value option for its investment in Liberty Broadband (Level 1) as it is believed that investors value this investment based on the trading price of Liberty Broadband. The Company recognizes changes in the fair value of its investment in Liberty Broadband in realized and unrealized gains (losses) on financial instruments, net in the accompanying condensed consolidated statements of operations. Summarized financial information for Liberty Broadband is as follows:

	March 31,		December 31,
	2020		2019
	amounts in thousands
Current assets	$	21,022	52,133
Investment in Charter, accounted for using the equity method	12,194,726		12,194,674
Other assets	9,406		9,535
Total assets	12,225,154		12,256,342
Long-term debt	573,269		572,944
Deferred income tax liabilities	992,704		999,757
Other liabilities	12,210		15,695
Equity	10,646,971		10,667,946
Total liabilities and shareholders' equity	$	12,225,154	12,256,342

		Three months ended
		March 31,
		2020		2019
	amounts in thousands
Revenue		$	4,104	3,458
Operating expenses, net		(11,379)		(9,659)
Operating income (loss)		(7,275)		(6,201)
Share of earnings (losses) of affiliates		61,682		34,849
Gain (loss) on dilution of investment in affiliate		(59,325)		(41,403)
Other income (expense), net		(5,698)		(6,120)
Income tax benefit (expense)		2,774		4,574
Net earnings (loss)		$	(7,842)	(14,301)