jvid��Ƶ

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

Liberty 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��31, 2017, and the carrying amount at December��31, 2016:

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

SIRIUS��XM Canada

In the acquisition of SIRIUS��XM on January��18, 2013, Liberty acquired an interest in Sirius��XM Canada Holdings, Inc. (“SIRIUS��XM Canada”) which SIRIUS��XM accounts for as an equity method affiliate. Liberty recognized the investment at fair value, based on the market price per share (level��1), on the date of acquisition.

On May��25, 2017, SIRIUS��XM completed a recapitalization of SIRIUS��XM Canada, which is now a privately held corporation.

SIRIUS��XM now holds a 70% equity interest and 33% voting interest in SIRIUS��XM Canada, with the remainder of the voting power and equity interest held by two of SIRIUS��XM Canada’s previous shareholders. The total consideration from SIRIUS��XM to SIRIUS��XM Canada, excluding transaction costs, during the year ended December 31, 2017 was $309��million, which included $130��million in cash and SIRIUS��XM issued 35��million shares of its common stock with an aggregate value of $179��million to the holders of the shares of SIRIUS��XM Canada acquired in the transaction. SIRIUS��XM received common stock, non-voting common stock and preferred stock of SIRIUS��XM Canada. SIRIUS��XM owns approximately 591��million shares of preferred stock of SIRIUS��XM Canada, which has a liquidation preference of one Canadian dollar per share. SIRIUS��XM Canada is accounted for as an equity method investment as SIRIUS��XM does not have the ability to direct the most significant activities that impact SIRIUS��XM Canada’s economic performance.

SIRIUS��XM also made a contribution in the form of a loan to SIRIUS��XM Canada in the aggregate amount of $131��million on May��25, 2017. The loan is denominated in Canadian dollars and is considered a long-term investment with any unrealized gains or losses reported within Accumulated other comprehensive (loss) income. Such loan has a term of fifteen years, bears interest at a rate of 7.62% per annum and includes customary covenants and events of default, including an event of default relating to SIRIUS��XM Canada’s failure to maintain specified leverage ratios. In addition, the terms of the loan require SIRIUS��XM Canada to prepay a portion of the outstanding principal amount of the loan within sixty days of the end of each fiscal year in an amount equal to any cash on hand in excess of C$10��million at the last day of the financial year if all target dividends have been paid in full.

SIRIUS��XM also entered into a Services Agreement and an Advisory Services Agreement with SIRIUS��XM Canada. Each agreement has a thirty year term. Pursuant to the Services Agreement, SIRIUS��XM Canada will pay SIRIUS��XM 25% of its gross revenue on a monthly basis through December��31, 2021 and 30% of its gross revenue on a monthly basis thereafter. Pursuant to the Advisory Services Agreement, SIRIUS��XM Canada will pay SIRIUS��XM 5% of its gross revenue on a monthly basis. These agreements supersede and replace the existing agreements between SIRIUS��XM Canada and its predecessors and SIRIUS��XM.

Under the legacy agreement, as of December��31, 2016, SIRIUS��XM’s related party current assets balance primarily consisted of activation fees and streaming and chipset costs for which it was reimbursed. SIRIUS��XM has approximately $10��million and $6��million in related party current assets as of December��31, 2017 and 2016, respectively. As of December��31, 2017, the related party current asset balance included amounts due under the new services arrangements and certain amounts due related to transactions outside of the scope of the new services arrangements. At December��31, 2017 and 2016, SIRIUS��XM has approximately $10��million and $11��million in related party liabilities, respectively, related to the legacy agreements with SIRIUS��XM Canada which are recorded in current and noncurrent other liabilities in the Company’s consolidated balance sheets. SIRIUS��XM recorded approximately $87��million, $46��million and $56��million in revenue for the years ended December��31, 2017, ��2016 and 2015, 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 $4��million, $8��million and $16��million during the years ended December��31, 2017, ��2016 and 2015, respectively. These dividends were first recorded as a reduction to SIRIUS��XM’s investment balance in Sirius��XM Canada to the extent a balance existed and then as Other income for the remaining portion.