| Investments In Affiliates Accounted For Using The Equity Method |
(9)ÌýÌýInvestments in Affiliates Accounted for Using the Equity Method
Liberty has various investments accounted for using the equity method. The following table includes Liberty's carrying amount and percentage ownership of the more significant investments in affiliates at DecemberÌý31, 2016 and the carrying amount at DecemberÌý31, 2015:
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Ìý
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DecemberÌý31,Ìý2016
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DecemberÌý31,Ìý2015
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Percentage
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Market
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Carrying
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Ìý
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Carrying
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ownership
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Ìý
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value
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amount
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amount
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dollarsÌýinÌýmillions
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QVC Group
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ÌýÌýÌýÌý
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Ìý
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ÌýÌýÌýÌý
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Ìý
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Ìý
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ÌýÌýÌýÌý
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Ìý
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Ìý
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ÌýÌýÌýÌý
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Ìý
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Ìý
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HSN (1)
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Ìý
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38
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%
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$
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687
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Ìý
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$
|
184
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Ìý
|
165
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Other
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various
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NA
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40
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43
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Total QVC Group
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Ìý
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Ìý
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Ìý
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Ìý
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224
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Ìý
|
208
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Ìý
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Ventures Group
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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FTD
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Ìý
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37
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%
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$
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243
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Ìý
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Ìý
|
216
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Ìý
|
267
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Ìý
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Other (2)
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various
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Ìý
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NA
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Ìý
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Ìý
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141
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Ìý
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239
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Total Ventures Group
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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357
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Ìý
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506
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Ìý
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Consolidated Liberty
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Ìý
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$
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581
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Ìý
|
714
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The following table presents Liberty's share of earnings (losses) of affiliates:
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YearsÌýendedÌýDecemberÌý31,
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ÌýÌýÌýÌý
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2016
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ÌýÌýÌýÌý
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2015
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ÌýÌýÌýÌý
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2014
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Ìý
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Ìý
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Ìý
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amountsÌýinÌýmillions
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QVC Group
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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HSN
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Ìý
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$
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48
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Ìý
|
64
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Ìý
|
60
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Ìý
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Other
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Ìý
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(6)
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Ìý
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(9)
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Ìý
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(9)
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Total QVC Group
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Ìý
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42
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Ìý
|
55
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Ìý
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51
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Ventures Group
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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Ìý
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FTD (3)
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Ìý
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Ìý
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(41)
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Ìý
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(83)
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Ìý
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Ìý—
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Other (2)
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(69)
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Ìý
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(150)
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Ìý
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(70)
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Total Ventures Group
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(110)
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(233)
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(70)
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Consolidated Liberty
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$
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(68)
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(178)
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(19)
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(1)
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HSN paid dividends of $28 million, $228 million, and $22 million during the years ended December 31, 2016, 2015 and 2014, respectively, which were recorded as reductions to the investment balances, and recorded as a cash inflow from operations in the Cash receipts from returns on equity investments line item in the consolidated statements of cash flows.ÌýÌýDividends from HSNi during the year ended December 31, 2015 included a special dividend of $10 per share from which Liberty received approximately $200 million in cash, which was recorded as a cash inflow from investing activities in the Cash receipts from returns of equity investments line item in the consolidated statements of cash flows.
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(2)
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The Other category for the Ventures Group is comprised of investments in LendingTree, alternative energy investments and other investments. The alternative energy investments generally operate at a loss but provide favorable tax attributes recorded through the income tax (expense) benefit line item in the consolidated statements of operations. During the year ended December 31, 2015, Liberty recorded an impairment of approximately $98 million, based on a discounted cash flow valuation (Level 3), related to one of its alternative energy investments which has underperformed operationally.
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(3)
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The carrying value of Liberty’s investment in FTD was impaired to the fair value (based on the closing price (Level 1)) as of December 31, 2015.
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Ìý
Investment in Liberty Broadband
Ìý
As discussed in note 2, in connection with the merger of Charter and TWC, on May 18, 2016, Liberty invested $2.4 billion in Liberty Broadband Series C nonvoting shares. As of December 31, 2016, Liberty has a 23% economic ownership interest in Liberty Broadband. Due to overlapping boards of directors and management, Liberty has been deemed to have significant influence over Liberty Broadband for accounting purposes, even though Liberty does not have any voting rights. Liberty has elected to apply the fair value option for its investment in Liberty Broadband (Level 1) as it is believed that the Company’s investors value this investment based on the trading price of Liberty Broadband. Liberty recognizes changes in the fair value of its investment in Liberty Broadband in realized and unrealized gains (losses) on financial instruments, net in the consolidated statements of operations.
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