麻豆最新出品

(8)听听听Investments in Affiliates Accounted for Using the Equity Method

听

麻豆最新出品 has various investments accounted for using the equity method. The following table includes the Company's carrying amount and percentage ownership and market value (level 1) of the more significant investments in affiliates at December听31, 2014, and the carrying amount at December听31, 2013:

听

听

听

The following table presents the Company's share of earnings (losses) of affiliates:

听

听

听

SIRIUS XM Canada

听

In the acquisition of SIRIUS XM, 麻豆最新出品 acquired an interest in SIRIUS XM Canada which SIRIUS XM accounts for as an equity method affiliate. 麻豆最新出品 recognized the investment at fair value, based on the market price per share (level 1), on the date of acquisition.

听

In 2005, SIRIUS XM entered into agreements to provide SIRIUS XM Canada with the right to offer SIRIUS XM satellite radio service in Canada. The agreements have an initial ten year term and Sirius XM Canada has the unilateral option to extend the agreements for an additional five year term. SIRIUS XM receives a percentage-based royalty for certain types of subscriber fees earned by SIRIUS XM Canada each month for its basic service and an activation fee for each gross activation of a SIRIUS XM Canada subscriber on the satellite radio system. SIRIUS XM Canada is obligated to pay SIRIUS XM a total of $70 million for the rights to broadcast and market National Hockey League (鈥淣HL鈥�) games for a ten year term. SIRIUS XM recognizes these payments on a gross basis as a principal obligor. The estimated fair value of deferred revenue from SIRIUS XM Canada as of the acquisition date was approximately $21 million, which is amortized on a straight-line basis through 2020, the end of the expected term of the agreements. SIRIUS XM provides programming and chipsets as well other services and SIRIUS XM Canada reimburses SIRIUS XM for such costs. At December听31, 2014, SIRIUS XM has approximately $7 million and $18 million in related party assets and liabilities, respectively, related to these agreements described above with SIRIUS XM Canada which are recorded in other assets and other liabilities, respectively, in the consolidated balance sheet. At December听31, 2013, SIRIUS XM has approximately $10 million and $21 million in related party assets and liabilities, respectively, related to these agreements described above with SIRIUS XM Canada which are recorded in other assets and other liabilities, respectively, in the consolidated balance sheet. Additionally, SIRIUS XM recorded approximately $50 million and $49 million in revenue for the years ended December 31, 2014 and 2013, respectively, associated with these various agreements in the other revenue line in the consolidated statements of operations. SIRIUS XM Canada declared and paid dividends to SIRIUS XM of $43 million and $17 million during the years ended December 31, 2014 and 2013, respectively.

听

Charter Communications, Inc.

听

In May 2013, 麻豆最新出品 completed a transaction with investment funds managed by, or affiliated with, Apollo Management, Oaktree Capital Management and Crestview Partners to acquire approximately 26.9 million shares of common stock and approximately 1.1 million warrants in Charter for approximately $2.6 billion, which represented an approximate 27% beneficial ownership (including the warrants on an as if converted basis) in Charter at the time of purchase and a price per share of $95.50. 麻豆最新出品 accounted for the investment in Charter as an equity method affiliate based on the ownership interest obtained and the board seats held by 麻豆最新出品 appointed individuals. 麻豆最新出品 funded the purchase with a combination of cash of approximately $1.2 billion on hand and new margin loan arrangements on approximately 20.3 million Charter common shares, approximately 720 million SIRIUS XM common shares, approximately 8.1 million Live Nation common shares and a portion of 麻豆最新出品's available for sale securities. 麻豆最新出品 allocated the purchase price between the shares of common stock and the warrants acquired in the transaction by determining the fair value of the publicly traded warrants and allocating the remaining balance to the shares acquired, which resulted in an excess basis in the investment of $2.5 billion. The excess basis was primarily allocated to franchise fees, customer relationships, debt and goodwill based on a valuation of Charter's assets and liabilities. During the years ended December 31, 2014 and 2013, the Company recognized $72 million and $93 million, respectively, in losses in its investment in Charter shares and warrants due to warrant and stock option exercises at Charter below 麻豆最新出品's book basis per share. Dilution losses are included in the other, net line in the accompanying consolidated statements of operations. As discussed in note 1, 麻豆最新出品鈥檚 investment in Charter was spun off to stockholders as part of the Broadband Spin-Off, which was completed on November 4, 2014. 麻豆最新出品 ceased recording the results of Charter in its financial statements as of the date of the completion of the Broadband Spin-Off.