(7) Investments in Available-for-Sale Securities and Other Cost Investments
All marketable equity securities held by the Company are classified as available-for-sale ("AFS") and are carried at fair value generally based on quoted market prices. GAAP permits entities to choose to measure many financial instruments, such as AFS securities, and certain other items at fair value and to recognize the changes in fair value of such instruments in the entity's statement of operations (the "fair value option"). The Company has elected the fair value option for those of its AFS securities which it considers to be non-strategic ("Fair Value Option Securities"). Accordingly, changes in the fair value of Fair Value Option Securities, as determined by quoted market prices, are reported in realized and unrealized gains (losses) on financial instruments in the accompanying condensed consolidated statements of operations.
Investments in AFS securities, including Fair Value Option Securities separately aggregated, and other cost investments are summarized as follows:
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June 30,
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December 31,
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2017
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2016
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amounts in millions
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Liberty SiriusXM Group
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Fair Value Option Securities
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Pandora (a)
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$
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173
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—
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Total attributed Liberty SiriusXM Group
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173
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—
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Braves Group
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Other AFS and cost investments
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8
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8
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Total attributed Braves Group
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8
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8
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Formula One Group
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Fair Value Option Securities
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Time Warner (b)
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427
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411
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Viacom (c)
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62
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65
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Other equity securities
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19
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13
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Total Fair Value Option Securities
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508
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489
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AFS and cost investments
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Formula 1 (d)
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—
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759
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Other AFS and cost investments
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61
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53
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Total AFS and cost investments
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61
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812
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Total attributed Formula One Group
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569
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1,301
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Consolidated Liberty
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$
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750
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1,309
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(a)
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On June 9, 2017, a subsidiary of SIRIUS XM entered into an agreement to purchase $480 million in newly issued Series A convertible preferred stock of Pandora. Pandora operates an internet-based music discovery platform, offering a personalized experience for listeners. SIRIUS XM purchased $172.5 million of Series A preferred stock upon execution of the agreement and has agreed to purchase the balance of the Series A preferred stock at a second closing. Upon completion of the second closing, the Series A preferred stock would represent a 19% interest in Pandora's currently outstanding common stock and a 16% interest on an as-converted basis. The investment includes a mandatory redemption feature on any date after the fifth anniversary of the second closing and therefore the financial instrument has been treated as a debt security. SIRIUS XM has elected to account for this investment under the fair value option.
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(b)
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See note 10 for details regarding the number and fair value of shares pledged as collateral pursuant to the Braves Holdings mixed-use development facility as of June 30, 2017.
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(c)
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See note 10 for details regarding the number and fair value of shares pledged as collateral pursuant to the Live Nation Margin Loan as of June 30, 2017.
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(d)
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See note 3 for details regarding the Company’s acquisition of Formula 1 during the six months ended June 30, 2017.
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Unrealized Holding Gains and Losses
There were no unrealized holding gains and losses related to investments in AFS securities as of June 30, 2017 or December 31, 2016