7. INVESTMENTS
Investments consisted of the following:
| (in thousands) | As of December 31, | |||||||
| 2013 | 2012 | |||||||
Equity-method investments | $ | 473,018 | $ | 474,523 | ||||
Cost-method investments | 15,180 | 15,180 | ||||||
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Total investments | $ | 488,198 | $ | 489,703 | ||||
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Equity-Method Investments — At December 31, 2013, investments accounted for using the equity method included the Company’s investments in UKTV (50% owned), HGTV Canada (33% owned), Food Canada (29% owned), Fox-BRV Southern Sports Holdings (7.25% owned), Food Network Magazine JV (50% owned) and HGTV Magazine JV (50% owned).
We acquired our 50% interest in UKTV following the close of business on September 30, 2011. UKTV receives financing through loans provided by us. These loans, totaling $122 million at December 31, 2013 and $129 million at December 31, 2012, and reported within “Other Non-Current Assets” in our consolidated balance sheet, effectively act as a revolving credit facility for UKTV. As a result of this financing arrangement and the level of equity investment at risk, we have determined that UKTV is a variable interest entity (“VIE”). SNI and its partner in the venture share equally in the profits of the entity, have equal representation on UKTV’s board of directors and share voting control in such matters as approving annual budgets, initiating financing arrangements, and changing the scope of the business. However, our partner maintains control over certain operational aspects of the business related to programming content, scheduling, and the editorial and creative development of UKTV. Additionally, certain key management personnel of UKTV are employees of our partner. Since we do not control these activities that are critical to UKTV’s operating performance, we have determined that we are not the primary beneficiary of the entity and account for the investment under the equity method of accounting. As of December 31, 2013 and December 31, 2012, the Company’s investment in UKTV was $413 million and $420 million, respectively.
The following tables present aggregated summarized financial information for our equity method investments. The summarized financial information is only reported for the periods we owned an interest in the equity method investment.
Aggregated statement of operations data for investments accounted for using the equity method of accounting is as follows:
| (in thousands) | For the years ended December 31, | |||||||||||
| 2013 | 2012 | 2011 | ||||||||||
Operating revenues | $ | 1,263,231 | $ | 1,160,391 | $ | 790,172 | ||||||
Operating income | 666,227 | 587,787 | 484,598 | |||||||||
Net income | 483,143 | 427,445 | 359,159 | |||||||||
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Our equity in earnings from the UKTV investment is reduced by amortization reflecting differences in the consideration paid for our equity interest in the entity and our 50% proportionate share of UKTV’s equity. Estimated amortization that will reduce UKTV’s equity in earnings for each of the next five years is expected to be $18.4 million in 2014, $17.6 million in 2015, $15.3 million in 2016, 2017 and 2018.
Aggregated balance sheet information for investments accounted for using the equity method of accounting is as follows:
| (in thousands) | As of December 31, | |||||||
| 2013 | 2012 | |||||||
Current assets | $ | 608,690 | $ | 576,504 | ||||
Non-current assets | 108,795 | 112,775 | ||||||
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Total Assets | $ | 717,485 | $ | 689,279 | ||||
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Current liabilities | $ | 165,430 | $ | 139,119 | ||||
Noncurrent liabilities | 210,057 | 212,213 | ||||||
Equity | 341,998 | 337,947 | ||||||
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Total Liabilities and Equity | $ | 717,485 | $ | 689,279 | ||||
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Investment Writedowns — We regularly review our investments to determine if there have been any other-than-temporary declines in value. These reviews require management judgments that often include estimating the outcome of future events and determining whether factors exist that indicate impairment has occurred. We evaluate among other factors, the extent to which costs exceed fair value; the duration of the decline in fair value below cost; and the current cash position, earnings and cash forecasts and near term prospects of the investee. No writedowns were recognized on our investments in 2013 or 2011. During 2012, we recorded a $5.9 million write-down to reduce the carrying value of an investment to its estimated fair value.