Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Entity Registrant Name | Liberty Broadband Corp | |
Entity Central Index Key | 1,611,983 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding | 26,142,026 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding | 2,467,547 | |
Class C common stock | ||
Entity Common Stock, Shares Outstanding | 74,600,657 |
Condensed Combined Balance Shee
Condensed Combined Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 643,384 | $ 44,809 |
Trade and other receivables, net | 919 | 617 |
Short-term marketable securities | 9,011 | 9,001 |
Deferred income tax assets | 9,868 | 11,282 |
Other current assets | 2,284 | 14,721 |
Total current assets | 665,466 | 80,430 |
Investments in available-for-sale securities | 424,570 | 360,762 |
Investments in affiliates, accounted for using the equity method | 2,432,487 | 2,498,804 |
Property and equipment, net | 1,421 | 3,590 |
Goodwill | 27,166 | 27,166 |
Intangible assets subject to amortization, net | 12,744 | 12,915 |
Deferred income tax assets | 47,093 | 19,540 |
Other assets, at cost, net of accumulated amortization | 570 | 725 |
Total assets | 3,611,517 | 3,003,932 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 10,912 | 15,953 |
Deferred revenue | 13,431 | 5,947 |
Derivative instruments | 75,356 | |
Other current liabilities | 1,981 | 2,340 |
Total current liabilities | 26,324 | 99,596 |
Debt | 372,000 | 372,000 |
Deferred revenue | 38,381 | 37,567 |
Total liabilities | 436,705 | 509,163 |
Equity | ||
Additional paid-in capital | 3,536,532 | 2,835,373 |
Accumulated other comprehensive earnings, net of taxes | 8,414 | 7,918 |
Retained earnings (accumulated deficit) | (371,166) | (349,380) |
Total equity | $ 3,174,812 | $ 2,494,769 |
Commitments and contingencies | ||
Total liabilities and equity | $ 3,611,517 | $ 3,003,932 |
Class A common stock | ||
Equity | ||
Common stock | 261 | 261 |
Total equity | 261 | 261 |
Class B common stock | ||
Equity | ||
Common stock | 25 | 25 |
Total equity | 25 | 25 |
Class C common stock | ||
Equity | ||
Common stock | 746 | 572 |
Total equity | $ 746 | $ 572 |
Condensed Combined Balance She3
Condensed Combined Balance Sheets (Paranthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Preferred Stock | ||
Preferred stock par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 50,000,000 | 50,000,000 |
Preferred shares issued | 0 | 0 |
Class A common stock | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 26,141,744 | 26,126,459 |
Common Stock, Shares, Outstanding | 26,141,744 | 26,126,459 |
Class B common stock | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 18,750,000 | 18,750,000 |
Common Stock, Shares, Issued | 2,467,547 | 2,467,547 |
Common Stock, Shares, Outstanding | 2,467,547 | 2,467,547 |
Class C common stock | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 74,599,785 | 57,189,897 |
Common Stock, Shares, Outstanding | 74,599,785 | 57,189,897 |
Condensed Combined Statements o
Condensed Combined Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Service | $ 10,173 | $ 14,589 | $ 30,512 | $ 43,840 |
Product and technology | 5,052 | 2,856 | 10,674 | 7,672 |
Total revenue | 15,225 | 17,445 | 41,186 | 51,512 |
Operating costs and expenses | ||||
Operating, including stock-based compensation | 1,090 | 1,908 | 4,447 | 5,683 |
Selling, general and administrative, including stock-based compensation | 9,515 | 8,006 | 32,091 | 37,932 |
Research and development, including stock-based compensation | 3,512 | 4,688 | 12,888 | 13,884 |
Net gain on legal settlement | (6,000) | (60,505) | (6,000) | |
Depreciation and amortization | 820 | 2,479 | 4,920 | 6,583 |
Total operating costs and expenses | 14,937 | 11,081 | (6,159) | 58,082 |
Operating income (loss) | 288 | 6,364 | 47,345 | (6,570) |
Other income (expense): | ||||
Interest Expense | (1,816) | (5,496) | ||
Dividend and interest income | 605 | 1,228 | 1,871 | 4,231 |
Share of earnings (losses) of affiliates | (3,999) | (34,542) | (65,747) | (95,968) |
Realized and unrealized gains (losses) on financial instruments, net | (23,116) | (12,532) | (12,091) | 23,745 |
(Gain) loss on dilution of investment in affiliate | (851) | (10,953) | (2,113) | (61,162) |
Other, net | 10 | 8 | 34 | (60) |
Net earnings (loss) before income taxes | (28,879) | (50,427) | (36,197) | (135,784) |
Income tax benefit (expense) | 9,584 | 18,437 | 14,411 | 47,983 |
Net earnings (loss) attributable to Liberty Broadband shareholders | $ (19,295) | $ (31,990) | $ (21,786) | $ (87,801) |
Earnings Per Share, Basic | $ (0.19) | $ (0.36) | $ (0.21) | $ (0.99) |
Earnings Per Share, Diluted | $ (0.19) | $ (0.36) | $ (0.21) | $ (0.99) |
Condensed Combined Statements 5
Condensed Combined Statements of Comprehensive Earnings (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Combined Statements of Comprehensive Earnings (Loss) | ||||
Net earnings (loss) | $ (19,295) | $ (31,990) | $ (21,786) | $ (87,801) |
Other comprehensive earnings (loss), net of taxes: | ||||
Unrealized holding gains (losses) arising during the period | (114) | (307) | (484) | (2,909) |
Share of other comprehensive earnings (loss) of equity affiliates | 327 | 806 | 980 | 2,693 |
Other comprehensive earnings (loss), net of taxes | 213 | 499 | 496 | (216) |
Comprehensive earnings (loss) attributable to Liberty Broadband shareholders | $ (19,082) | $ (31,491) | $ (21,290) | $ (88,017) |
Condensed Combined Statements 6
Condensed Combined Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (21,786) | $ (87,801) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 4,920 | 6,583 |
Stock-based compensation | 4,782 | 735 |
Excess tax benefit from stock-based compensation | (1,217) | |
Share of earnings (losses) of affiliates | 65,747 | 95,968 |
Realized and unrealized (gains) losses on financial instruments, net | 12,091 | (23,745) |
(Gain) loss on dilution of investment in affiliate | 2,113 | 61,162 |
Deferred Income Tax Expense (Benefit) | (26,406) | (54,427) |
Other non-cash charges (credits), net | (2,565) | (716) |
Changes in operating assets and liabilities: | ||
Current and other assets | 904 | 1,623 |
Payables and other liabilities | 11,826 | 23,106 |
Net cash provided by operating activities | 50,409 | 22,488 |
Cash flows from investing activities: | ||
Capital expended for property and equipment | (2,616) | (1,117) |
Cash paid for acquisitions, net of cash acquired | (48,088) | |
Investments in equity method affiliates | (124,492) | |
Amounts loaned to former parent | (60,952) | |
Repayments by former parent on loan receivable | 80,012 | |
Other investing activities, net | 112 | (6) |
Net cash used in investing activities | (2,504) | (154,643) |
Cash flows from financing activities: | ||
Cash received from rights offering | 697,309 | |
Borrowings of debt | 40,000 | |
Repayments of debt | (40,000) | |
Proceeds from issuances of financial instruments | 30,158 | 68,019 |
Payments from settlements of financial instruments | (182,192) | (68,019) |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 1,217 | |
Contribution from (distribution to) former parent, net | 170,315 | |
Other financing activities, net | 4,178 | |
Net cash provided by (used in) financing activities | 550,670 | 170,315 |
Net increase in cash | 598,575 | 38,160 |
Cash and cash equivalents, beginning of period | 44,809 | 9,251 |
Cash and cash equivalents, end of period | $ 643,384 | $ 47,411 |
Condensed Combined Statement of
Condensed Combined Statement of Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Class A common stock | Class B common stock | Class C common stock | Additional paid-in capital | Accumulated other comprehensive earnings | Retained earnings (accumulated) deficit | Total |
Balance at Dec. 31, 2014 | $ 261 | $ 25 | $ 572 | $ 2,835,373 | $ 7,918 | $ (349,380) | $ 2,494,769 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | (21,786) | (21,786) | |||||
Other comprehensive earnings (loss) | 496 | 496 | |||||
Stock compensation | 3,893 | 3,893 | |||||
Issuance of common stock upon exercise of stock options | 1 | 127 | 128 | ||||
Excess tax benefits from stock-based compensation | 1,217 | 1,217 | |||||
Common stock issued pursuant to the rights offering | 173 | 697,136 | 697,309 | ||||
Stockholders' Equity, Other | (1,214) | (1,214) | |||||
Balance at Sep. 30, 2015 | $ 261 | $ 25 | $ 746 | $ 3,536,532 | $ 8,414 | $ (371,166) | $ 3,174,812 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation | |
Basis of Presentation | (1) Basis of Presentation During May 2014, the board of Liberty Media Corporation and its subsidiaries (“Liberty,” formerly named Liberty Spinco, Inc.) authorized management to pursue a plan to spin-off to its stockholders common stock of a newly formed company to be called Liberty Broadband Corporation (“Liberty Broadband” or the “Company”), and to distribute subscription rights to acquire shares of Series C Liberty Broadband common stock (the “Broadband Spin-Off”). Liberty Broadband is comprised of, among other things, (i) Liberty’s former interest in Charter Communications, Inc. (“Charter”), (ii) Liberty’s former wholly-owned subsidiary TruePosition, Inc. (“TruePosition”), (iii) Liberty’s former minority equity investment in Time Warner Cable, Inc. (“Time Warner Cable”), (iv) certain deferred tax liabilities, as well as liabilities related to Time Warner Cable written call options and (v) initial indebtedness, pursuant to margin loans entered into prior to the completion of the Broadband Spin-Off. These financial statements refer to the combination of the aforementioned subsidiary, investments, and financial instruments as “Liberty Broadband,” “the Company,” “us,” “we” and “our” in the notes to the condensed consolidated financial statements. In the Broadband Spin-Off, record holders of Liberty Series A, Series B and Series C common stock received one -fourth of a share of the corresponding series of Liberty Broadband common stock for each share of Liberty common stock held by them as of 5:00 p.m., New York City time, on October 29, 2014 (the record date) , with cash paid in lieu of fractional shares. This resulted in the issuance of an aggregate 85,761,332 shares of Series A, Series B and Series C Liberty Broadband common stock. In addition, following the completion of the Broadband Spin-Off, on December 10, 2014, stockholders received a subscription right to acquire one share of Series C Liberty Broadband common stock for every five shares of Liberty Broadband common stock they held as of 5:00 p.m., New York City time, on December 4, 2014 (the rights record date) at a per share subscription price of $40.36 , which was a 20% discount to the 20 -trading day volume weighted average trading price of the Series C Liberty Broadband common stock following the completion of the Broadband Spin-Off. The rights offering was fully subscribed on January 9, 2015, with 17,277,224 shares of Series C common stock issued to those rightsholders exercising basic and, as applicable, oversubscription privileges for total proceeds of $697.3 million . The subscription rights were issued to raise capital for general corporate purposes of Liberty Broadband. The Broadband Spin-Off and rights offering were intended to be tax-free to stockholders of Liberty and Liberty Broadband, respectively. During September 2015, Liberty entered into a closing agreement with the IRS which provided that the Broadband Spin-Off qualified for tax-free treatment. The Broadband Spin-Off was accounted for at historical cost due to the pro rata nature of the distribution to holders of Liberty common stock. The accompanying (a) condensed consolidated balance sheet as of December 31, 2014 , which has been derived from audited financial statements, and (b) interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. Additionally, certain prior period amounts have been reclassified for comparability with current period presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Liberty Broadband's Annual Report on Form 10-K for the year ended December 31, 2014 . All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company considers (i) the application of the equity method of accounting for investments in affiliates, (ii) the fair value of non-financial instruments, (iii) the fair value of financial instruments, (iv) revenue recognition and (v) accounting for income taxes to be its most significant estimates . In May 2014, the Financial Accounting Standards Board issued new accounting guidance on revenue from contracts with customers. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a retrospective or cumulative effect transition method. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the effect that the updated standard will have on its revenue recognition and has not yet selected a transition method but does not believe that the standard will significantly impact its financial statements and related disclosures. Liberty Broadband holds an investment that is accounted for using the equity method. Liberty Broadband does not control the decision making process or business management practices of this affiliate. Accordingly, Liberty Broadband relies on the management of this affiliate to provide it with accurate financial information prepared in accordance with GAAP that the Company uses in the application of the equity method. In addition, Liberty Broadband relies on audit reports that are provided by the affiliate's independent auditor on the financial statements of such affiliate. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliate that would have a material effect on Liberty Broadband's condensed consolidated financial statements. During the nine months ended September 30, 2015 , Liberty Broadband entered into certain agreements with Charter, Liberty Interactive Corporation (“Liberty Interactive”) and Time Warner Cable in connection with certain proposed transactions among these companies. See note 5 for additional detail regarding these transactions and corresponding agreements. Spin-Off of Liberty Broadband from Liberty Media Corporation Following the Broadband Spin-Off, Liberty and Liberty Broadband operate as separate, publicly traded companies, and neither has any stock ownership, beneficial or otherwise, in the other. In connection with the Broadband Spin-Off, Liberty and Liberty Broadband entered into certain agreements in order to govern certain of the ongoing relationships between the two companies after the Broadband Spin-Off and to provide for an orderly transition. These agreements include a reorganization agreement, a services agreement, a facilities sharing agreement and a tax sharing agreement. The reorganization agreement provides for, among other things, the principal corporate transactions (including the internal restructuring) required to effect the Broadband Spin-Off, certain conditions to the Broadband Spin-Off and provisions governing the relationship between Liberty Broadband and Liberty with respect to and resulting from the Broadband Spin-Off. The tax sharing agreement provides for the allocation and indemnification of tax liabilities and benefits between Liberty and Liberty Broadband and other agreements related to tax matters. Among other things, pursuant to the tax sharing agreement, Liberty Broadband has agreed to indemnify Liberty, subject to certain limited exceptions, for losses and taxes resulting from the Broadband Spin-Off to the extent such losses or taxes result primarily from, individually or in the aggregate, the breach of certain restrictive covenants made by Liberty Broadband (applicable to actions or failures to act by Liberty Broadband and its subsidiaries following the completion of the Broadband Spin-Off). Pursuant to the services agreement, Liberty provides Liberty Broadband with general and administrative services including legal, tax, accounting, treasury and investor relations support. Under the facilities sharing agreement, Liberty Broadband shares office space with Liberty and related amenities at Liberty’s corporate headquarters. Liberty Broadband will reimburse Liberty for direct, out-of-pocket expenses incurred by Liberty in providing these services and for costs that will be negotiated semi-annually. Under these various agreements, approximately $656 thousand and $1.8 million was reimbursable to Liberty for the three and nine months ended September 30, 2015 , respectively. Acquisition of Skyhook Wireless, Inc. On February 14, 2014, TruePosition acquired 100% of the outstanding common shares of Skyhook Wireless, Inc. (“Skyhook”), a Delaware corporation, for approximately $57.5 million in cash. Skyhook is a provider of hybrid wireless positioning technology and contextual location intelligence. Acquisition related costs of $958 thousand are included in selling, general and administrative expenses for the nine months ended September 30, 2014. TruePosition used its cash plus a capital contribution of $49.4 million from Liberty during 2014 to fund the acquisition. Upon the acquisition of Skyhook, TruePosition placed $6.0 million of the cash consideration into an escrow account for use to settle any indemnification claims made by TruePosition during the 12 months subsequent to closing the acquisition. There were no claims made against the escrow account, and the full amount was released to the selling parties during February 2015. In mid November 2014, Skyhook was notified that one of its significant customers was not expected to renew its contract for 2015. D ue to the anticipated decline in Skyhook's operations as a result of the loss of this customer, the Company recorded a $35.2 million impairment loss related to TruePosition’s goodwill and intangible assets related to Skyhook during December 2014. |
Earnings per Share (EPS) - 10Q
Earnings per Share (EPS) - 10Q | 9 Months Ended |
Sep. 30, 2015 | |
Earnings per Share (EPS) | |
Earnings per Share (EPS) | (2) Earnings (Loss) per Share Basic earnings (loss) per common share (“EPS”) is computed by dividing net earnings (loss) attributable to Liberty Broadband shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. The Company issued 85,761,332 common shares, which is the aggregate number of shares of Series A, Series B and Series C common stock outstanding upon the completion of the Broadband Spin-Off on November 4, 2014. Additionally, as part of the rights offering, Liberty Broadband distributed subscription rights, which were priced at a discount to the market value, to all holders of Liberty Broadband common stock (see further discussion in note 1). The rights offering, because of the discount, is considered a stock dividend which requires retroactive treatment for prior periods for the weighted average shares outstanding based on a factor applied determined by the fair value per share immediately prior to the rights exercise and the theoretical fair value after the rights exercise. The number of shares issued upon completion of the Broadband Spin-Off, adjusted for the rights factor, was used to determine both basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2014 , as no Company equity awards were outstanding prior to the Broadband Spin-Off. Basic earnings (loss) per share subsequent to the completion of the Broadband Spin-Off is computed using the weighted average number of shares outstanding (“WASO”) during the period. Diluted earnings (loss) per share subsequent to the Broadband Spin-Off is computed using the WASO during the period, adjusted for potentially dilutive equity awards outstanding during the same period. Excluded from diluted EPS for the three and nine months ended September 30, 2015 are 3 thousand potential common shares because their inclusion would be antidilutive. Liberty Broadband Common Stock Three months Three months Nine months Nine months ended ended ended ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 (numbers of shares in thousands) Basic EPS Potentially dilutive shares NA NA Diluted EPS |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 9 Months Ended |
Sep. 30, 2015 | |
Assets and Liabilities Measured at Fair Value | |
Assets and Liabilities Measured at Fair Value | (3) Assets and Liabilities Measured at Fair Value For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company does not have any recurring assets or liabilities measured at fair value that would be considered Level 3. The Company’s assets and (liabilities) measured at fair value are as follows: September 30, 2015 December 31, 2014 Quoted prices Significant Quoted prices Significant in active other in active other markets for observable markets for observable identical assets inputs identical assets inputs Description Total (Level 1) (Level 2) Total (Level 1) (Level 2) (amounts in thousands) Cash equivalents $ — — Short-term marketable securities $ — — Available-for-sale securities $ — — Time Warner Cable financial instruments (1) (2) $ — — — — (1) As of December 31, 2014, the Company had an outstanding written call option on 625,000 Time Warner Cable shares with a strike price of $92.02 per share which expired in February 2015. Upon expiration, this written call option was rolled into a new written call option on 625,000 Time Warner Cable shares with a strike price of $100.39 per share which the Company cash settled during June 2015 for $48.3 million. Additionally, as of December 31, 2014, the Company had another outstanding written call option on 625,000 Time Warner Cable shares with a strike price of $90.84 per share which the Company cash settled during April 2015 for $36.7 million. No written call options on Time Warner Cable shares are outstanding as of September 30, 2015 . (2) On March 27, 2015, Liberty Broadband entered into a cashless collar agreement with a financial institution on 1.7 million Time Warner Cable shares held by the Company with a put option strike price of $136.80 per share and a call option strike price of $161.62 per share. The collar was originally scheduled to expire during March 2017. The Company unwound the agreement during July 2015 for $67.1 million cash paid to the counterparty. In connection with this collar agreement, the Company also entered into a revolving loan agreement with an availability of $234 million, which was terminated upon unwinding of the collar agreement during July 2015 (note 7). The fair value of Level 2 derivative liabilities were derived from a Black-Scholes Model using observable market data as the significant inputs. The inputs used in the model during the period (exclusive of the applicable trading price of Time Warner Cable stock and the strike prices associated with the call options and collar agreement) were as follows : Range Volatility % — % Interest rate % — % Dividend yield % — % Other Financial Instruments Other financial instruments not measured at fair value on a recurring basis include trade receivables, trade payables, accrued and other current liabilities. The carrying amount approximates fair value due to the short maturity of these instruments as reported on our condensed consolidated balance sheets. Realized and Unrealized Gains (Losses) on Financial Instruments Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following: Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 (amounts in thousands) Charter warrants (1) $ NA NA Time Warner Cable investment and financial instruments $ (1) As discussed in note 5, Liberty Broadband exercised all of the Company’s outstanding warrants to purchase shares of Charter common stock during November 2014, subsequent to the completion of the Broadband Spin-Off. |
Investments in Available-for-Sa
Investments in Available-for-Sale Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments in Available-for-Sale Securities | |
Investments in Available-for-Sale Securities | (4) Investments in Available-for-Sale Securities All marketable equity and debt 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 statements of operations. The Company has elected to account for those of its AFS securities which it considers to be nonstrategic (“Fair Value Option Securities”) at fair value. 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 our interest in Time Warner Cable which is our only Fair Value Option Security, are summarized as follows: September 30, December 31, 2015 2014 (amounts in thousands) Time Warner Cable $ Other equity securities Total investments in available-for-sale securities $ Unrealized Holding Gains and Losses As of September 30, 2015 and December 31, 2014 , the gross unrealized holding gains related to investments in AFS securities were $41 thousand and $820 thousand, respectively. There were no gross unrealized holding losses related to investment in AFS securities for the periods presented. |
Investments in Affiliates Accou
Investments in Affiliates Accounted for Using the Equity Method | 9 Months Ended |
Sep. 30, 2015 | |
Investments in Affiliates Accounted for Using the Equity Method | |
Investments in Affiliates Accounted for Using the Equity Method | (5) Investments in Affiliates Accounted for Using the Equity Method In May 2013, Liberty acquired approximately 26.9 million shares of common stock and approximately 1.1 million warrants to purchase shares of Charter common stock 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 . Liberty funded the purchase with a combination of cash on hand of approximately $1.2 billion and new margin loan arrangements (note 7). Liberty 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 $2,532 million. The investment in Charter is accounted for as an equity method affiliate based on the ownership interest obtained and the board seats held by individuals appointed by Liberty. During May 2014, Liberty purchased 897 thousand Charter shares for approximately $124.5 million. During November 2014, subsequent to the Broadband Spin-Off, Liberty Broadband exercised all of the Company’s outstanding warrants to purchase shares of Charter common stock for approximately $52 million . As of September 30, 2015 , the carrying value of Liberty Broadband’s ownership in Charter was approximately $2,432 million. The market value of Liberty Broadband’s ownership in Charter as of September 30, 2015 was approximately $5,071 million, which represented an approximate ownership of 26% of the outstanding equity of Charter as of that date. Due to the amortization of amortizable assets and debt acquired, losses due to warrant and stock option exercises at Charter (as discussed below) and the acquisition of additional shares of Charter, the excess basis has decreased to $2,417 million as of September 30, 2015 and has been allocated within memo accounts used for equity accounting purposes as follows (amounts in millions): Property and equipment $ Customer relationships Franchise fees Trademarks Goodwill Debt Deferred income tax liability $ Upon acquisition, Liberty ascribed remaining useful lives of 7 years and 13 years to property and equipment and customer relationships, respectively, and indefinite lives to franchise fees, trademarks and goodwill. The excess basis of outstanding debt is amortized over the contractual period using the effective interest rate method. The Company’s share of earnings (losses) of affiliates line item in the accompanying condensed consolidated statements of operations includes expenses of $17.8 million and $21.1 million, net of related taxes, for the three months ended September 30, 2015 and 2014 , respectively, and expenses of $27.6 million and $62.0 million, net of related taxes, for the nine months ended September 30, 2015 and 2014 , respectively, due to the amortization of the excess basis related to assets with identifiable useful lives and debt. The excess basis amortization during the nine months ended September 30, 2015 was offset by the write-off of the excess basis related to debt instruments which Charter repaid during the second quarter of 2015 prior to their contractual maturity. Due to dilution from Charter warrant and stock option exercises by outside investors (employees and other third parties) at prices below Liberty Broadband’s book basis per share, the Company had losses of $851 thousand and $11.0 million during the three months ended September 30, 2015 and 2014 , respectively, and $2.1 million and $61.2 million during the nine months ended September 30, 2015 and 2014 , respectively. On March 31, 2015, Liberty Broadband announced its entry into a new stockholders agreement with Charter, a subsidiary of Charter (“New Charter”) and Advance/Newhouse Partnership (“A/N”) (the “Bright House Stockholders Agreement”), which would have replaced the Company’s existing stockholders agreement with Charter, as amended October 14, 2014. Liberty Broadband’s entry into the Bright House Stockholders Agreement came as the result of Charter’s announcement of a proposed transaction with A/N, pursuant to which New Charter would acquire Bright House Networks (“Bright House”) from A/N for $10.4 billion (the “Bright House Transaction”). The closing of the Bright House Transaction was subject to several conditions, including Charter’s receipt of stockholder approval, the expiration of Time Warner Cable’s right of first offer for Bright House, the closing of a binding definitive agreement between Charter and Comcast Corporation (the “Comcast Transactions Agreement”) and regulatory approval. As announced by Charter on April 24, 2015, the Comcast Transactions Agreement was terminated by Comcast Corporation. As the closing of the Comcast Transactions Agreement had been a condition to the Bright House Transaction, the parties to the Bright House Stockholders Agreement were to consider, and negotiate for a period of 30 days in good faith, amendments to the terms of the Bright House Stockholders Agreement that would be desirable to consummate the Bright House Transaction. On May 26, 2015, Liberty Broadband announced its entry into an agreement with Charter to invest $4.3 billion at a price of $176.95 per share in connection with (and contingent upon) the closing of the proposed merger of Time Warner Cable and Charter (the “Time Warner Cable Merger”), which was also announced on May 26, 2015. Additionally, Liberty Broadband agreed to purchase an additional $700 million at a price of $173.00 per share (adjusted by the applicable exchange rates in the Time Warner Cable Merger) in connection with Charter’s proposed acquisition of Bright House from A/N, which is generally conditioned on the closing of the Time Warner Cable Merger. In connection with these transactions, it is expected that Charter will undergo a corporate reorganization, resulting in New Charter, a current subsidiary of Charter, becoming the new publicly traded parent company. As discussed previously, in support of the Time Warner Cable Merger, Liberty Broadband will purchase shares of stock in New Charter (the “Charter Shares”) using proceeds of $4.4 billion related to subscriptions for newly issued shares of Liberty Broadband’s Series C common stock (the “Series C Shares”), at a price per share of $56.23 , which was determined based upon the fair value of Liberty Broadband’s net assets on a sum-of-the parts basis at the time the investment agreements were executed. The purchasers of the Series C Shares are Liberty Interactive through its Liberty Ventures Group and certain third party investors, which will all invest on substantially similar terms. One of the third party investors also holds a position in Time Warner Cable and has agreed to vote its Time Warner Cable shares in favor of the Time Warner Cable Merger. The Series C Share subscriptions are subject to customary closing conditions and funding will only occur in connection with the completion of the Time Warner Cable Merger. Each of Charter and Liberty Broadband obtained stockholder approval during September 2015 for the issuance of the Charter Shares and the Series C Shares, respectively, in accordance with the rules and requirements of the Nasdaq Stock Market. Liberty Broadband has the right, and may determine, to incur debt financing (subject to certain conditions) to fund a portion of the purchase price for its investment in New Charter, in which case Liberty Broadband may reduce the aggregate subscription for Series C Shares by up to 25% , with such reduction applied pro rata to all investors, including Liberty Interactive. In connection with the Time Warner Cable Merger, Liberty Broadband has also entered into an agreement with Charter pursuant to which it has agreed to vote all of its shares of Charter’s Class A common stock in favor of the Time Warner Cable Merger, the issuance of the Charter Shares and any related proposals. Liberty Broadband and Liberty Interactive have also entered into an agreement with Charter which provides that Liberty Broadband and Liberty Interactive will exchange, in a tax-free transaction, the shares of Time Warner Cable common stock held by each company for shares of New Charter Class A common stock (subject to certain limitations). In addition, Liberty Interactive has also agreed to grant Liberty Broadband a proxy over the shares of New Charter it receives in the exchange, along with a right of first refusal with respect to the underlying New Charter shares. Liberty Broadband intends to fund its commitment to purchase up to $700 million in shares of New Charter at a per share price of $173.00 (as adjusted) in connection with the Bright House acquisition through cash on hand or other financing. As previously announced, A/N and Liberty Broadband will enter into a proxy agreement, pursuant to which A/N will grant Liberty Broadband a five -year proxy to vote shares of New Charter held by A/N, capped at 7% of New Charter’s outstanding shares. Liberty Broadband is expected to control approximately 25.01% of the aggregate voting power of New Charter following the completion of the Time Warner Cable Merger and the Bright House Transaction and is expected to be New Charter’s largest stockholder. The terms of a new stockholders agreement among Charter, New Charter, Liberty Broadband and A/N (which will become effective upon the closing of the Bright House Transaction) remain substantially similar to the Bright House Stockholders Agreement, except that the restrictions on Liberty Broadband’s ability to utilize its shares of New Charter in connection with financing transactions have been eliminated and A/N will be entitled to designate two (instead of three) director nominees, among other things. The Time Warner Cable Merger was approved by stockholders of both Charter and Time Warner Cable during September 2015 and is subject to regulatory approval and other customary conditions to closing. The Bright House acquisition is subject to several conditions, including the completion of the Time Warner Cable Merger (subject to certain exceptions if Time Warner Cable enters into another sale transaction) and regulatory approval. Therefore, as these transactions are subject to certain contingencies, we have not reflected any financial impacts in the condensed consolidated financial statements related to the respective agreements as of September 30, 2015 . Summarized unaudited financial information for Charter is as follows (amounts in millions): Charter condensed consolidated balance sheet September 30, 2015 December 31, 2014 Current assets $ Property and equipment, net Goodwill Intangible assets, net Restricted cash and cash equivalents Other assets Total assets $ Current liabilities $ Deferred income taxes Long-term debt Other liabilities Equity Total liabilities and shareholders’ equity $ Charter condensed consolidated statement of operations Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Revenue $ Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) Depreciation and amortization Other operating expenses, net Operating income Interest expense Other income (expense), net Income tax benefit (expense) Net income (loss) $ |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | (6) Goodwill and Other Intangible Assets There were no changes in the carrying amount of goodwill during the nine months ended September 30, 2015 . As discussed in note 10, during September 2015, TruePosition’s largest customer gave notice that it does not intend to renew its contract, which expires on December 31, 2015. The Company believes that the receipt of the notification represents a significant change in circumstances since we last performed our annual goodwill impairment test. Accordingly, we performed a goodwill impairment test upon receipt of the notification from TruePosition. At September 30, 2015, the carrying value of goodwill for TruePosition was $20.7 million . The estimated fair value of the reporting unit was primarily determined based on the cash and cash equivalents held by the reporting unit, and when compared to its carrying value, it was concluded that a goodwill impairment did not exist. The carrying value of TruePosition includes a deferred revenue liability related to the contract with the largest customer. Upon expiration of the contract in the fourth quarter of 2015, the deferred revenue will be recognized, as all contractual obligations will have been satisfied. The recognition of this deferred revenue liability will likely increase the reporting unit carrying value, and it is anticipated that the carrying value will exceed the fair value. Intangible assets subject to amortization are comprised of the following (amounts in thousands): September 30, 2015 December 31, 2014 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Acquired patents $ Customer relationships Tradename Capitalized software $ Upon acquisition of Skyhook, TruePosition assigned remaining useful lives to each of Skyhook’s intangible assets acquired. Patents, tradename and customer relationship intangible assets were amortized straight-line over five years and capitalized software intangible assets were amortized straight-line over three to five years. In connection with the intangible impairment recorded on Skyhook’s intangible assets during the fourth quarter of 2014, TruePosition re-evaluated the remaining useful lives of Skyhook’s amortizable intangible assets. As a result, as of January 1, 2015, TruePosition determined the remaining useful life of Skyhook’s patents to be three and a half years and Skyhook’s tradename and customer relationship to be five and a half years. On January 1, 2015, TruePosition began amortizing Skyhook’s intangible assets straight-line prospectively over these revised periods. Capitalized software intangible assets continue to be amortized over three to five years. Amortization expense was $707 thousand and $2.0 million for the three months ended September 30, 2015 and 2014 , respectively and $2.2 million and $4.7 million for the nine months ended September 30, 2015 and 2014 , respectively. The estimated future amortization expense for the next five years related to intangible assets with definite lives as of September 30, 2015 is as follows (amounts in thousands): Remainder of 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt | |
Debt Disclosure [Text Block] | (7) Debt On October 30, 2014, in connection with and prior to the effectiveness of the Broadband Spin-Off, a wholly-owned special purpose subsidiary of the Company (“BroadbandSPV”) entered into two margin loan agreements (the “Margin Loan Agreements”) with each of the lenders party thereto. The Margin Loan Agreements permit BroadbandSPV, subject to certain funding conditions, to borrow term loans up to an aggregate principal amount equal to $400 million (the “Margin Loans”), of which BroadbandSPV borrowed $320 million on October 31, 2014. Approximately $300 million of the amount borrowed pursuant to the Margin Loan Agreements (less certain expenses incurred in connection with the Margin Loans) was distributed to Liberty prior to the Broadband Spin-Off. During November 2014, subsequent to the Broadband Spin-Off, Liberty Broadband borrowed an additional $52 million to fund the exercise of the warrants to purchase shares of Charter common stock. As of September 30, 2015 , Liberty Broadband had $372.0 million outstanding under the Margin Loan Agreements, with an additional $28.0 million available to be drawn. The maturity date of the Margin Loans is October 30, 2017. Borrowings under the Margin Loan Agreements bear interest at the three-month LIBOR rate plus 1.55% . Interest is payable quarterly in arrears beginning on December 31, 2014. The Margin Loan Agreements contain various affirmative and negative covenants that restrict the activities of BroadbandSPV. The Margin Loan Agreements do not include any financial covenants. The Margin Loan Agreements also contain restrictions related to additional indebtedness. BroadbandSPV’s obligations under the Margin Loan Agreements are guaranteed by the Company. In addition, BroadbandSPV’s obligations are secured by first priority liens on a portion of the Company’s ownership interest in Charter, sufficient for BroadbandSPV to meet its loan to value requirement under the Margin Loan Agreements. Each agreement contains language that indicates that Liberty Broadband, as borrower and transferor of underlying shares as collateral, has the right to exercise all voting, consensual and other powers of ownership pertaining to the transferred shares for all purposes, provided that Liberty Broadband agrees that it will not vote the shares in any manner that would reasonably be expected to give rise to transfer or other certain restrictions. Similarly, the loan agreements indicate that no lender party shall have any voting rights with respect to the shares transferred, except to the extent that a lender party buys any shares in a sale or other disposition made pursuant to the terms of the loan agreements. As of September 30, 2015 , 7.0 million shares of Charter with a value of $1.2 billion were pledged as collateral pursuant to the Margin Loans. In connection with the collar agreement on shares of Time Warner Cable entered into on March 27, 2015, as discussed in note 3, the Company also entered into a $234 million revolving loan agreement. On April 7, 2015, Liberty Broadband drew $40 million on this loan, which was the amount used to match the outstanding call liability. The shares of Time Warner Cable underlying the collar served as collateral for borrowings under the revolving loan agreement. Borrowings outstanding under the revolving loan agreement bore interest at the three-month LIBOR rate plus 0.64% , payable quarterly in arrears beginning on March 31, 2015. The interest rate on the unused portion of the revolving loan agreement was 0.12% per annum. The Company repaid the $40 million drawn on the loan during July 2015 and the agreement was terminated upon unwinding of the Time Warner Cable collar agreement. TruePosition had a $4 million line of credit, which expired on December 25, 2013, covering standby letters of credit issued for the benefit of TruePosition. Pursuant to the terms of the line of credit, upon its expiration, any issued and outstanding letters of credit remained in effect through the remainder of their respective terms, the last of which expired during the first quarter of 2015. Accordingly, there were no letters of credit outstanding at September 30, 2015 . $634 thousand in letters of credit were outstanding as of December 31, 2014 . Letters of credit issued under the line of credit bore interest at an annual rate of 1.75% , payable quarterly. Interest expense related to the line of credit was not significant for the three or nine months ended September 30, 2015 or 2014 . Letters of credit issued under the line of credit prior to its expiration remained collateralized by a cash deposit maintained by the bank, which was cancelled upon the expiration of the last letter of credit during the first quarter of 2015. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation | |
Stock-Based Compensation | (8) Stock-Based Compensation Liberty Broadband grants, to certain of its directors, employees and employees of its subsidiaries, restricted stock, stock options and stock appreciation rights ("SARs") to purchase shares of its common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options and restricted stock) based on the grant-date fair value of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award (such as SARs that will be settled in cash) based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date. Included in the accompanying condensed consolidated statements of operations are the following amounts of stock-based compensation for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands): Three months Nine months ended ended September 30, September 30, 2015 2014 2015 2014 Operating expense $ — Selling, general and administrative Research and development $ Liberty Broadband – Grants of Stock Options During the nine months ended September 30, 2015 Liberty Broadband granted 3 thousand options to purchase shares of Series C common stock, with a weighted average grant-date fair value of $15.03 per share. These options cliff vest over a 2 year vesting period. There were no options to purchase shares of Series A common stock granted during the period. The Company calculates the grant-date fair value for all of its equity classified awards and any subsequent remeasurement of its liability classified awards using the Black-Scholes Model. The Company estimates the expected term of the Awards based on historical exercise and forfeiture data. Since Liberty Broadband common stock has not traded on the stock market for a significant length of time, the volatility used in the calculation for Awards is based on the historical volatility of Charter common stock and the implied volatility of publicly traded Charter options; as the most significant asset within Liberty Broadband, the volatility of Charter served as a proxy for the expected volatility of Liberty Broadband. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject option. Liberty Broadband – Outstanding Awards The following table presents the number and weighted average exercise price (“WAEP”) of Awards to purchase Liberty Broadband common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the Awards. Weighted average remaining Aggregate contractual intrinsic Series A WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2015 $ Granted — $ — Exercised $ Forfeited/Cancelled $ Outstanding at September 30, 2015 $ $ Exercisable at September 30, 2015 $ $ Weighted average remaining Aggregate contractual intrinsic Series C WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2015 $ Granted $ Exercised $ Forfeited/cancelled $ Outstanding at September 30, 2015 $ $ Exercisable at September 30, 2015 $ $ As of September 30, 2015 , the total unrecognized compensation cost related to unvested Awards was approximately $21 million . Such amount will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 3.3 years. As of September 30, 2015 , Liberty Broadband reserved 3.7 million shares of Series A and Series C common stock for issuance under exercise privileges of outstanding stock Awards. TruePosition Equity Incentive Plans During the nine months ended September 30, 2015 , TruePosition issued 120 thousand stand-alone phantom stock appreciation rights (“PARs”), 23 thousand stand-alone phantom stock units (“PSUs”) and 4.0 million Skyhook PARs. As of September 30, 2015 , the fair value of outstanding PARs and PSUs was approximately $3.9 million. As of September 30, 2015 , $1.7 million is included in Other current liabilities in the accompanying condensed consolidated balance sheet for the fair value of TruePosition’s vested long-term incentive plan obligations. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions | |
Related Party Transactions | (9) Related Party Transactions During the nine months ended September 30, 2014 , certain of TruePosition’s costs and expenses were charged to TruePosition by Liberty. The amounts due to Liberty and the activities for the nine months ended September 30, 2014 is summarized as follows (amounts in thousands): 2014 Receivable at beginning of year $ Cost and expenses charged by Liberty Amounts due under the tax-sharing arrangement Transfer of related party receivable to (from) note receivable Payments to Liberty Payable at end of period $ Historically, TruePosition also had an intercompany note arrangement with Liberty under which funds could be advanced to Liberty and remitted back to TruePosition as needed. The note bore interest at the three-month LIBOR plus 2% . During September 2014, prior to the completion of the Broadband Spin-Off, Liberty remitted back to TruePosition all principal and accrued interest related to this note and this arrangement was extinguished. Accordingly, no amounts are outstanding pursuant to this arrangement at September 30, 2015 or December 31, 2014. Prior to the completion of the Broadband Spin-Off, TruePosition was party to certain tax sharing arrangements with Liberty (or its former affiliate). Under these tax-sharing arrangements, TruePosition had been obligated to make cash payments to Liberty (or its former affiliate) in each year TruePosition generated positive taxable income, determined as if TruePosition filed a separate tax return. The amount of such payment had been equal to the amount of TruePosition’s taxable income (as so determined) multiplied by the highest corporate tax rate in effect for the applicable tax jurisdiction. If on a separate return basis, TruePosition would have a net operating loss or net tax credit for a particular year, and such loss or credit could be utilized on the actual tax returns filed by Liberty (or its former affiliate), then TruePosition would be entitled to reduce current and future payments to Liberty (or its former affiliate) by the amount of such tax benefit. During the nine months ended September 30, 2014 , $5.3 million due to TruePosition from Liberty was transferred to the note receivable from Liberty under this arrangement. During October 2014, prior to the Broadband Spin-Off, TruePosition’s income tax receivable from Liberty was transferred to Liberty Broadband and the tax sharing arrangement between Liberty and TruePosition was extinguished. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | (10) Commitments and Contingencies Leases TruePosition leases various properties under operating leases expiring at various times through 2018. TruePosition’s principal facility is under lease through December 2017. Total rental expense was $622 thousand and $821 thousand for each of the three months ended September 30, 2015 and 2014 , respectively and $2.0 million and $2.4 million for each of the nine months ended September 30, 2015 and 2014 , respectively. General Litigation In the ordinary course of business, the Company and its consolidated companies are parties to legal proceedings and claims involving alleged infringement of third-party intellectual property rights, defamation, and other claims. Although it is reasonably possible that the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements. Litigation On July 21, 2011, TruePosition filed an antitrust lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against LM Ericsson Telephone Company (“ Ericsson” ), the Third Generation Partnership Project (“ 3GPP” ) and certain other defendants arising from the standard setting processes for LTE wireless data communication technology as it pertains to location technology. The case was settled, with a cash payment to TruePosition of approximately $6 million and non-monetary considerations, and was formally dismissed in its entirety on July 30, 2014. Defendants 3GPP and Ericsson did not contribute to the cash portion of the settlement. With respect to the defendants that contributed to the cash settlement, such cash was provided with no finding or implication of liability to avoid the expenditure of litigation costs exceeding the settlement amount, and in consideration for TruePosition’s withdrawal of accusations of wrongdoing. On May 23, 2012, TruePosition filed a patent infringement lawsuit in the U.S. District Court for the District of Delaware against Polaris Wireless, Inc. (“Polaris”), related to the sale by Polaris of systems used to locate mobile devices. In parallel with the lawsuit, at Polaris’s request, the U.S. Patent and Trademark Office initiated an Inter Partes Review. Both the District Court and the Patent Trial and Appeal Board ruled adversely to TruePosition and those rulings are under appeal, with oral argument scheduled for December 11, 2015. Subsequent to the adverse rulings on May 14, 2015, Polaris filed a motion in the District Court for an award of approximately $3 million in attorneys’ fees and expenses incurred in defending the lawsuit. The matter was heard by the Court on October 16, 2015, wherein the court denied the Polaris motion. On September 10, 2010, Skyhook filed a patent infringement lawsuit in the U.S. District Court for the District of Massachusetts against Google, Inc. (“Google”). In March 2013, Skyhook amended its lawsuit to add additional claims. In total, at the time the case was to be tried, Skyhook alleged that Google infringed on eight Skyhook patents involving location technology and sought an injunction and/or award of damages in an amount to be determined at trial. The case had been scheduled to be tried before a jury commencing March 9, 2015. However, on March 5, 2015, the parties advised the District Court that the case had been settled and thereby dismissed the action without costs and without prejudice to the right, upon good cause shown within 45 days, to reopen the action if the settlement was not consummated. On March 27, 2015, the parties consummated a final settlement agreement and on April 24, 2015, Google paid Skyhook settlement consideration of $90 million. In return for payment of the settlement consideration, Google received dismissal of the action with prejudice, a license to the existing Skyhook patents and patent applications (and their continuations, divisionals, continuations-in-part), a three-year covenant not to sue (subject to limited exceptions) and a mutual release of claims. The settlement amount of $90 million is recorded net of approximately $29.5 million for legal fees in the statement of operations for the nine months ended September 30, 2015 . Indemnification Claims In the normal course of business, TruePosition provides indemnification to certain customers against specified claims that might arise against those customers from the use of TruePosition’s products. TruePosition’s former customer, T-Mobile, and TruePosition’s current customer, AT&T, have made a total of six indemnification claims against TruePosition. There have been no changes or developments to five of the claims since December 31, 2014. The sixth claim, related to the lawsuit filed against AT&T by Guidance IP LLC, was resolved by the payment to AT&T of $55 thousand during October 2015. With respect to the lawsuit filed against AT&T by Tracbeam, LLC, AT&T has determined that TruePosition’s total allocated contribution is $132 thousand and has invoiced TruePosition accordingly. TruePosition has informed AT&T that TruePosition believes that the allocation method employed by AT&T is flawed and that the actual amount owed is less than $132 thousand. TruePosition is unable to estimate the maximum potential impact of these indemnification provisions on its future results of operations, although TruePosition’s liabilities in certain of those arrangements are customarily limited in various respects, including monetarily. Certain Risks and Concentrations The TruePosition business is subject to certain risks and concentrations including dependence on relationships with its customers. TruePosition has one significant customer, the loss of which would have a material adverse effect on TruePosition’s business. For the three months ended September 30, 2015 and 2014 , this customer accounted for 84% and 82% , respectively, of TruePosition’s total revenue, and for the nine months ended September 30, 2015 and 2014 , this customer accounted for 79% and 83% , respectively, of TruePosition’s total revenue. This customer’s contract is currently scheduled to expire on December 31, 2015. During September 2015, this customer notified TruePosition that it plans to discontinue use of TruePosition’s existing technology by the time its contract expires on December 31, 2015. As discussed in note 6, TruePosition is evaluating the impact that this loss may have on its business. Off-Balance Sheet Arrangements Liberty Broadband did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, results of operations, liquidity, capital expenditures or capital resources. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information | |
Segment Information | (11) Segment Information Liberty Broadband identifies its reportable segments as (A) those consolidated companies that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of Liberty Broadband’s annual pre-tax earnings. Liberty Broadband evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, Liberty Broadband reviews nonfinancial measures such as subscriber growth. Liberty Broadband defines Adjusted OIBDA as revenue less operating expenses and selling, general and administrative expenses (excluding stock-based compensation). Liberty Broadband believes this measure is an important indicator of the operational strength and performance of its businesses, including each business’s ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net earnings, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Liberty Broadband generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices. For the nine months ended September 30, 2015 , Liberty Broadband has identified the following consolidated subsidiary and equity method investment as its reportable segments: · TruePosition—a wholly-owned subsidiary of the Company that develops and markets technology for locating wireless phones and other wireless devices on a cellular network, enabling wireless carriers and government agencies to provide public safety E-9-1-1 services domestically and services in support of national security and law enforcement worldwide. In addition, TruePosition acquired Skyhook in 2014, which operates a global location network providing hybrid wireless positioning technology and contextual location intelligence solutions worldwide. · Charter—an equity method investment of the Company that is one of the largest providers of cable services in the United States, offering a variety of entertainment, information and communications solutions to residential and commercial customers. Liberty Broadband’s operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated companies are the same as those described in the Company’s summary of significant accounting policies in the Company’s annual financial statements. We have included amounts attributable to Charter in the tables below. Although Liberty Broadband owns less than 100% of the outstanding shares of Charter, 100% of the Charter amounts are included in the schedule below and subsequently eliminated in order to reconcile the account totals to the Liberty Broadband condensed consolidated financial statements. Performance Measures Three months ended September 30, 2015 2014 Adjusted Adjusted Revenue OIBDA Revenue OIBDA (amounts in thousands) TruePosition $ Charter Corporate and other — — — Eliminate equity method affiliate Consolidated Liberty Broadband $ Nine months ended September 30, 2015 2014 Adjusted Adjusted Revenue OIBDA Revenue OIBDA (amounts in thousands) TruePosition $ Charter Corporate and other — — — Eliminate equity method affiliate Consolidated Liberty Broadband $ Other Information September 30, 2015 Total Investments Capital assets in affiliates expenditures (amounts in thousands) TruePosition $ — Charter — Corporate and other — Eliminate equity method affiliate — Consolidated Liberty Broadband $ The following table provides a reconciliation of segment Adjusted OIBDA to earnings (loss) before income taxes: Three months Nine months ended September 30, ended September 30, 2015 2014 2015 2014 (amounts in thousands) Consolidated segment Adjusted OIBDA $ Stock-based compensation Depreciation and amortization Net gain on legal settlement — Interest expense — — Dividend and interest income Share of earnings (loss) of affiliates Realized and unrealized gains (losses) on financial instruments, net Gain (loss) on dilution of investment in affiliate Other, net Earnings (loss) before income taxes $ |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies | |
Schedule of weighted average number of shares | Liberty Broadband Common Stock Three months Three months Nine months Nine months ended ended ended ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 (numbers of shares in thousands) Basic EPS Potentially dilutive shares NA NA Diluted EPS |
Assets and Liabilities Measur20
Assets and Liabilities Measured at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Assets and Liabilities Measured at Fair Value | |
Schedule of assets and liabilities measured at fair value | September 30, 2015 December 31, 2014 Quoted prices Significant Quoted prices Significant in active other in active other markets for observable markets for observable identical assets inputs identical assets inputs Description Total (Level 1) (Level 2) Total (Level 1) (Level 2) (amounts in thousands) Cash equivalents $ — — Short-term marketable securities $ — — Available-for-sale securities $ — — Time Warner Cable financial instruments (1) (2) $ — — — — (1) As of December 31, 2014, the Company had an outstanding written call option on 625,000 Time Warner Cable shares with a strike price of $92.02 per share which expired in February 2015. Upon expiration, this written call option was rolled into a new written call option on 625,000 Time Warner Cable shares with a strike price of $100.39 per share which the Company cash settled during June 2015 for $48.3 million. Additionally, as of December 31, 2014, the Company had another outstanding written call option on 625,000 Time Warner Cable shares with a strike price of $90.84 per share which the Company cash settled during April 2015 for $36.7 million. No written call options on Time Warner Cable shares are outstanding as of September 30, 2015 . (2) On March 27, 2015, Liberty Broadband entered into a cashless collar agreement with a financial institution on 1.7 million Time Warner Cable shares held by the Company with a put option strike price of $136.80 per share and a call option strike price of $161.62 per share. The collar was originally scheduled to expire during March 2017. The Company unwound the agreement during July 2015 for $67.1 million cash paid to the counterparty. In connection with this collar agreement, the Company also entered into a revolving loan agreement with an availability of $234 million, which was terminated upon unwinding of the collar agreement during July 2015 (note 7). |
Schedule of assumptions used to measure fair value | Range Volatility % — % Interest rate % — % Dividend yield % — % |
Schedule of realized and unrealized gains (losses) on financial instruments | Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 (amounts in thousands) Charter warrants (1) $ NA NA Time Warner Cable investment and financial instruments $ As discussed in note 5, Liberty Broadband exercised all of the Company’s outstanding warrants to purchase shares of Charter common stock during November 2014, subsequent to the completion of the Broadband Spin-Off. |
Investments in Available-for-21
Investments in Available-for-Sale Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments in Available-for-Sale Securities | |
Schedule of investments in AFS securities, including Fair Value Option Securities separately aggregated | September 30, December 31, 2015 2014 (amounts in thousands) Time Warner Cable $ Other equity securities Total investments in available-for-sale securities $ |
Investments in Affiliates Acc22
Investments in Affiliates Accounted for Using the Equity Method (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments in Affiliates Accounted for Using the Equity Method | |
Schedule of allocation of excess basis within memo accounts used for equity accounting purposes | the excess basis has decreased to $2,417 million as of September 30, 2015 and has been allocated within memo accounts used for equity accounting purposes as follows (amounts in millions): Property and equipment $ Customer relationships Franchise fees Trademarks Goodwill Debt Deferred income tax liability $ |
Summary of financial information for Charter | Summarized unaudited financial information for Charter is as follows (amounts in millions): Charter condensed consolidated balance sheet September 30, 2015 December 31, 2014 Current assets $ Property and equipment, net Goodwill Intangible assets, net Restricted cash and cash equivalents Other assets Total assets $ Current liabilities $ Deferred income taxes Long-term debt Other liabilities Equity Total liabilities and shareholders’ equity $ Charter condensed consolidated statement of operations Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Revenue $ Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) Depreciation and amortization Other operating expenses, net Operating income Interest expense Other income (expense), net Income tax benefit (expense) Net income (loss) $ |
Goodwill and Other Intangible23
Goodwill and Other Intangible Assets (Table) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Other Intangible Assets | |
Schedule of intangible assets subject to amortization | Intangible assets subject to amortization are comprised of the following (amounts in thousands): September 30, 2015 December 31, 2014 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Acquired patents $ Customer relationships Tradename Capitalized software $ |
Schedule of estimated future amortization expense for the next five years related to intangible assets with definite lives | The estimated future amortization expense for the next five years related to intangible assets with definite lives as of September 30, 2015 is as follows (amounts in thousands): Remainder of 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Included in the accompanying condensed consolidated statements of operations are the following amounts of stock-based compensation for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands): Three months Nine months ended ended September 30, September 30, 2015 2014 2015 2014 Operating expense $ — Selling, general and administrative Research and development $ |
Class A common stock | |
Schedule of stock awards activity | Weighted average remaining Aggregate contractual intrinsic Series A WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2015 $ Granted — $ — Exercised $ Forfeited/Cancelled $ Outstanding at September 30, 2015 $ $ Exercisable at September 30, 2015 $ $ |
Class C common stock | |
Schedule of stock awards activity | Weighted average remaining Aggregate contractual intrinsic Series C WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2015 $ Granted $ Exercised $ Forfeited/cancelled $ Outstanding at September 30, 2015 $ $ Exercisable at September 30, 2015 $ $ |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions | |
Summary of amounts due to Liberty | The amounts due to Liberty and the activities for the nine months ended September 30, 2014 is summarized as follows (amounts in thousands): 2014 Receivable at beginning of year $ Cost and expenses charged by Liberty Amounts due under the tax-sharing arrangement Transfer of related party receivable to (from) note receivable Payments to Liberty Payable at end of period $ |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information | |
Schedule of performance measures | Three months ended September 30, 2015 2014 Adjusted Adjusted Revenue OIBDA Revenue OIBDA (amounts in thousands) TruePosition $ Charter Corporate and other — — — Eliminate equity method affiliate Consolidated Liberty Broadband $ Nine months ended September 30, 2015 2014 Adjusted Adjusted Revenue OIBDA Revenue OIBDA (amounts in thousands) TruePosition $ Charter Corporate and other — — — Eliminate equity method affiliate Consolidated Liberty Broadband $ |
Schedule of segment reporting information | September 30, 2015 Total Investments Capital assets in affiliates expenditures (amounts in thousands) TruePosition $ — Charter — Corporate and other — Eliminate equity method affiliate — Consolidated Liberty Broadband $ |
Schedule of reconciliation of segment Adjusted OIBDA to earnings (loss) before income taxes | Three months Nine months ended September 30, ended September 30, 2015 2014 2015 2014 (amounts in thousands) Consolidated segment Adjusted OIBDA $ Stock-based compensation Depreciation and amortization Net gain on legal settlement — Interest expense — — Dividend and interest income Share of earnings (loss) of affiliates Realized and unrealized gains (losses) on financial instruments, net Gain (loss) on dilution of investment in affiliate Other, net Earnings (loss) before income taxes $ |
Basis of Presentation (Details)
Basis of Presentation (Details) $ / shares in Units, $ in Thousands | May. 26, 2015USD ($)$ / shares | Dec. 10, 2014$ / shares | Nov. 04, 2014shares | Jan. 09, 2015USD ($)shares | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) |
Broadband Spin-Off Distribution Ratio | 0.25 | |||||
Subscription rights distribution ratio | 0.20 | |||||
Stock Issued During Period, Shares, New Issues | shares | 85,761,332 | |||||
Share Price | $ 56.23 | |||||
Subscription Rights Discount to Market Percentage | 20.00% | |||||
Subscription Rights Period of Time for Calculation of Subscription Price | 20 days | |||||
Related Party Transaction, Amounts of Transaction | $ | $ 656 | $ 1,800 | ||||
Cash received from rights offering | $ | $ 4,400,000 | $ 697,300 | $ 697,309 | |||
Class C common stock | ||||||
Stock Issued During Period, Shares, New Issues | shares | 17,277,224 | |||||
Share Price | $ 40.36 |
Basis of Presentation (Detail28
Basis of Presentation (Details) $ in Thousands | Feb. 14, 2014USD ($)item | Dec. 31, 2014USD ($) | Nov. 30, 2014customer | Sep. 30, 2014USD ($) |
TruePosition | ||||
Acquisition | ||||
Cash consideration deposited in escrow account | $ 6,000 | |||
Term in which indemnification claims made would be settled | 12 months | |||
TruePosition | Skyhook | ||||
Acquisition | ||||
Voting interest acquired (as a percent) | 100.00% | |||
Cash paid for acquisition | $ 57,500 | |||
Cash payment for acquisition from capital contribution from Liberty | $ 49,400 | |||
Skyhook | ||||
Acquisition | ||||
Number of significant customers not expected to renew | customer | 1 | |||
TruePosition | ||||
Acquisition | ||||
Number of claims made against the escrow account | item | 0 | |||
Goodwill and Intangible Asset Impairment | $ 35,200 | |||
TruePosition | Skyhook | ||||
Acquisition | ||||
Acquisition related costs | $ 958 |
Earnings per Share (EPS) (Detai
Earnings per Share (EPS) (Details) - shares | Nov. 04, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Earnings per Share (EPS) | |||||
Stock Issued During Period, Shares, New Issues | 85,761,332 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,000 | 3,000 | |||
Weighted Average Number of Shares Outstanding, Basic | 103,024,000 | 88,343,000 | 102,140,000 | 88,343,000 | |
Potentially dilutive shares | 662,000 | 630,000 | |||
Weighted Average Number of Shares Outstanding, Diluted, Total | 103,686,000 | 88,343,000 | 102,770,000 | 88,343,000 |
Assets and Liabilities Measur30
Assets and Liabilities Measured at Fair Value (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Apr. 30, 2015USD ($) | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($) | Mar. 27, 2015USD ($)$ / itemshares | Feb. 28, 2015$ / itemshares | Dec. 31, 2014USD ($)$ / itemshares | |
Assets and Liabilities Measured at Fair Value | ||||||||
Short-term marketable securities | $ 9,011 | $ 9,001 | ||||||
Investments, at fair value | 424,570 | 360,762 | ||||||
Payments from settlements of financial instruments | 182,192 | $ 68,019 | ||||||
Revolving Credit Facility | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 234,000 | |||||||
Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Investments, at fair value | $ 424,202 | 359,615 | ||||||
Written call option | Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Class of Warrant or Right, Outstanding | shares | 0 | |||||||
Cashless Collar | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Payments from settlements of financial instruments | $ 67,100 | |||||||
Cashless Collar | Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Derivative share amount hedged | shares | 1,700,000 | |||||||
Cashless Collar | Put Option | Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Derivative, Price Risk Option Strike Price | $ / item | 136.80 | |||||||
Cashless Collar | Call Option | Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Derivative, Price Risk Option Strike Price | $ / item | 161.62 | |||||||
Total | Recurring | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Cash equivalents | $ 626,312 | 36,002 | ||||||
Short-term marketable securities | 9,011 | 9,001 | ||||||
Total | Written call option | Recurring | Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Derivative liabilities, at fair value | (75,356) | |||||||
Available for sale securities | Total | Recurring | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Investments, at fair value | 424,570 | $ 360,762 | ||||||
Expiration Date February 2015 | Written call option | Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Derivative share amount hedged | shares | 625,000 | |||||||
Derivative, Price Risk Option Strike Price | $ / item | 92.02 | |||||||
Expiration Date February 2016 [member] | Written call option | Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Derivative share amount hedged | shares | 625,000 | |||||||
Derivative, Price Risk Option Strike Price | $ / item | 100.39 | |||||||
Payments from settlements of financial instruments | $ 48,300 | |||||||
Expiration Date May 2015 | Written call option | Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Derivative share amount hedged | shares | 625,000 | |||||||
Derivative, Price Risk Option Strike Price | $ / item | 90.84 | |||||||
Payments from settlements of financial instruments | $ 36,700 | |||||||
Quoted prices in active markets for identical assets (Level 1) | Recurring | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Cash equivalents | 626,312 | $ 36,002 | ||||||
Short-term marketable securities | 9,011 | 9,001 | ||||||
Quoted prices in active markets for identical assets (Level 1) | Available for sale securities | Recurring | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Investments, at fair value | $ 424,570 | 360,762 | ||||||
Level 2 | Written call option | Recurring | Time Warner | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||
Derivative liabilities, at fair value | $ (75,356) | |||||||
Minimum | ||||||||
Level 2 input | ||||||||
Volatility | 17.40% | |||||||
Interest rate | 0.41% | |||||||
Dividend yield | 0.00% | |||||||
Maximum | ||||||||
Level 2 input | ||||||||
Volatility | 25.20% | |||||||
Interest rate | 0.99% | |||||||
Dividend yield | 0.24% |
Assets and Liabilities Measur31
Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Realized and Unrealized Gains (Losses) on Financial Instruments | ||||
Realized and unrealized gains (losses) | $ (23,116) | $ (12,532) | $ (12,091) | $ 23,745 |
Charter | Warrants | ||||
Realized and Unrealized Gains (Losses) on Financial Instruments | ||||
Realized and unrealized gains (losses) | (7,976) | 15,233 | ||
Time Warner | Investment and financial instruments [member] | ||||
Realized and Unrealized Gains (Losses) on Financial Instruments | ||||
Realized and unrealized gains (losses) | $ (23,116) | $ (4,556) | $ (12,091) | $ 8,512 |
Investments in Available-for-32
Investments in Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale securities | ||
Investments in available-for-sale securities | $ 424,570 | $ 360,762 |
Unrealized Holding Gains and Losses | ||
Gross unrealized holding gains | 41 | 820 |
Gross unrealized holding losses | 0 | 0 |
Other equity securities | ||
Available-for-sale securities | ||
Investments in available-for-sale securities | 368 | 1,147 |
Time Warner | ||
Available-for-sale securities | ||
Investments in available-for-sale securities | $ 424,202 | $ 359,615 |
Investments in Affiliates Acc33
Investments in Affiliates Accounted for Using the Equity Method (Details) - USD ($) | Sep. 30, 2015 | May. 26, 2015 | Apr. 24, 2015 | Mar. 31, 2015 | Jan. 09, 2015 | Nov. 30, 2014 | May. 31, 2014 | May. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Investments in affiliates accounted for using the Equity Method | |||||||||||||
Cash paid to acquire equity method investments | $ 124,492,000 | ||||||||||||
Cash received from rights offering | $ 4,400,000,000 | $ 697,300,000 | $ 697,309,000 | ||||||||||
Share Price | $ 56.23 | ||||||||||||
Potential reduction of subscription rights | 25.00% | ||||||||||||
Charter consolidated statement of operations | |||||||||||||
Debt outstanding | $ 372,000,000 | $ 372,000,000 | 372,000,000 | $ 372,000,000 | |||||||||
Carrying value of equity method investment | 2,432,487,000 | 2,432,487,000 | 2,432,487,000 | 2,498,804,000 | |||||||||
Share of equity investment income (losses) | (3,999,000) | $ (34,542,000) | (65,747,000) | (95,968,000) | |||||||||
(Gain) loss on dilution of investment in affiliate | (851,000) | (10,953,000) | (2,113,000) | (61,162,000) | |||||||||
Charter | |||||||||||||
Investments in affiliates accounted for using the Equity Method | |||||||||||||
Cash paid to exercise warrants | $ 52,000,000 | ||||||||||||
Charter consolidated balance sheet | |||||||||||||
Current assets | 406,000,000 | 406,000,000 | 406,000,000 | 371,000,000 | |||||||||
Property and equipment, net | 8,281,000,000 | 8,281,000,000 | 8,281,000,000 | 8,373,000,000 | |||||||||
Goodwill | 1,168,000,000 | 1,168,000,000 | 1,168,000,000 | 1,168,000,000 | |||||||||
Intangible assets, net | 6,922,000,000 | 6,922,000,000 | 6,922,000,000 | 7,111,000,000 | |||||||||
Restricted cash and cash equivalents | 19,626,000,000 | 19,626,000,000 | 19,626,000,000 | 7,111,000,000 | |||||||||
Other assets | 470,000,000 | 470,000,000 | 470,000,000 | 416,000,000 | |||||||||
Total assets | 36,873,000,000 | 36,873,000,000 | 36,873,000,000 | 24,550,000,000 | |||||||||
Current liabilities | 1,829,000,000 | 1,829,000,000 | 1,829,000,000 | 1,635,000,000 | |||||||||
Deferred income taxes | 1,616,000,000 | 1,616,000,000 | 1,616,000,000 | 1,674,000,000 | |||||||||
Long-term debt | 33,281,000,000 | 33,281,000,000 | 33,281,000,000 | 21,023,000,000 | |||||||||
Other liabilities | 87,000,000 | 87,000,000 | 87,000,000 | 72,000,000 | |||||||||
Equity | 60,000,000 | 60,000,000 | 60,000,000 | 146,000,000 | |||||||||
Total liabilities and shareholders' equity | 36,873,000,000 | 36,873,000,000 | 36,873,000,000 | $ 24,550,000,000 | |||||||||
Charter consolidated statement of operations | |||||||||||||
Revenue | 2,450,000,000 | 2,287,000,000 | 7,242,000,000 | 6,748,000,000 | |||||||||
Operating costs and expenses | (1,620,000,000) | (1,518,000,000) | (4,802,000,000) | (4,444,000,000) | |||||||||
Depreciation and amortization | (538,000,000) | (535,000,000) | (1,580,000,000) | (1,568,000,000) | |||||||||
Other operating expenses | (19,000,000) | (16,000,000) | (69,000,000) | (42,000,000) | |||||||||
Total operating costs and expenses | (2,177,000,000) | (2,069,000,000) | (6,451,000,000) | (6,054,000,000) | |||||||||
Operating income | 273,000,000 | 218,000,000 | 791,000,000 | 694,000,000 | |||||||||
Interest expense, net | (353,000,000) | (217,000,000) | (871,000,000) | (638,000,000) | |||||||||
Other income (expense), net | (8,000,000) | 5,000,000 | (141,000,000) | (3,000,000) | |||||||||
Income tax benefit (expense), net | 142,000,000 | (59,000,000) | 72,000,000 | (188,000,000) | |||||||||
Net income (loss) | 54,000,000 | (53,000,000) | (149,000,000) | (135,000,000) | |||||||||
Carrying value of equity method investment | $ 2,432,000,000 | $ 2,432,000,000 | $ 2,432,000,000 | ||||||||||
Ownership percentage | 26.00% | 26.00% | 26.00% | ||||||||||
Excess basis amortization of debt and intangible assets | $ (17,800,000) | 21,100,000 | $ 27,600,000 | 62,000,000 | |||||||||
(Gain) loss on dilution of investment in affiliate | 851,000 | $ 11,000,000 | 2,100,000 | $ 61,200,000 | |||||||||
Excess basis allocation within memo accounts | |||||||||||||
Property and equipment | $ 375,000,000 | 375,000,000 | 375,000,000 | ||||||||||
Customer relationships | 591,000,000 | 591,000,000 | 591,000,000 | ||||||||||
Franchise fees | 1,451,000,000 | 1,451,000,000 | 1,451,000,000 | ||||||||||
Trademarks | 36,000,000 | 36,000,000 | 36,000,000 | ||||||||||
Goodwill | 944,000,000 | 944,000,000 | 944,000,000 | ||||||||||
Debt | (133,000,000) | (133,000,000) | (133,000,000) | ||||||||||
Deferred income tax liability | (847,000,000) | (847,000,000) | (847,000,000) | ||||||||||
Total | 2,417,000,000 | 2,417,000,000 | $ 2,417,000,000 | ||||||||||
Useful lives of property and equipment | 7 years | ||||||||||||
Charter | Customer relationships | |||||||||||||
Excess basis allocation within memo accounts | |||||||||||||
Useful lives of customer relationships | 13 years | ||||||||||||
Bright House | |||||||||||||
Excess basis allocation within memo accounts | |||||||||||||
Negotiation period | 30 days | ||||||||||||
New Charter [Member] | |||||||||||||
Investments in affiliates accounted for using the Equity Method | |||||||||||||
Purchase price (in dollars per share) | $ 173 | ||||||||||||
Cash paid to acquire equity method investments | $ 700,000,000 | ||||||||||||
Proxy voting period | 5 years | ||||||||||||
Maximum percentage of New Charter shares that may be voted by proxy | $ 7 | ||||||||||||
Charter consolidated statement of operations | |||||||||||||
Ownership percentage | 25.01% | ||||||||||||
Time Warner Cable Merger [Member] | Charter | |||||||||||||
Investments in affiliates accounted for using the Equity Method | |||||||||||||
Purchase price (in dollars per share) | $ 176.95 | ||||||||||||
Cash paid to acquire equity method investments | $ 4,300,000,000 | ||||||||||||
Charter acquisition of Bright House [Member] | Charter | |||||||||||||
Investments in affiliates accounted for using the Equity Method | |||||||||||||
Purchase price (in dollars per share) | $ 173 | ||||||||||||
Cash paid to acquire equity method investments | $ 700,000,000 | ||||||||||||
Liberty | Charter | |||||||||||||
Investments in affiliates accounted for using the Equity Method | |||||||||||||
Number of shares of common shares acquired | 897,000 | 26,900,000 | |||||||||||
Number of warrants acquired | 1,100,000 | ||||||||||||
Purchase price of equity method investments | $ 124,500,000 | $ 2,600,000,000 | |||||||||||
Beneficial ownership percentage | 27.00% | ||||||||||||
Purchase price (in dollars per share) | $ 95.50 | ||||||||||||
Cash paid to acquire equity method investments | $ 1,200,000,000 | ||||||||||||
Charter consolidated statement of operations | |||||||||||||
Market value of equity method investment | $ 5,071,000,000 | $ 5,071,000,000 | $ 5,071,000,000 | ||||||||||
Excess basis allocation within memo accounts | |||||||||||||
Total | $ 2,532,000,000 | ||||||||||||
New Charter [Member] | Bright House | |||||||||||||
Excess basis allocation within memo accounts | |||||||||||||
Payments to Acquire Businesses, Gross | $ 10,400,000,000 | ||||||||||||
Margin Loan Agreements | Charter | |||||||||||||
Investments in affiliates accounted for using the Equity Method | |||||||||||||
Number of common shares pledged as collateral | 7,000,000 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Feb. 14, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Non-amortizable intangible assets | |||||||
Goodwill | $ 27,166 | $ 27,166 | $ 27,166 | ||||
Amortizable intangible assets | |||||||
Gross Carrying Amount | 34,856 | 34,856 | 32,813 | ||||
Accumulated Amortization | (22,112) | (22,112) | (19,898) | ||||
Net Carrying Amount | 12,744 | 12,744 | 12,915 | ||||
Amortization expense | 707 | $ 2,000 | 2,200 | $ 4,700 | |||
Estimated future amortization expense | |||||||
Remainder of 2015 | 870 | 870 | |||||
2,016 | 3,400 | 3,400 | |||||
2,017 | 3,335 | 3,335 | |||||
2,018 | 2,529 | 2,529 | |||||
2,019 | 1,742 | 1,742 | |||||
TruePosition | |||||||
Non-amortizable intangible assets | |||||||
Goodwill | 20,700 | 20,700 | |||||
Patents | |||||||
Amortizable intangible assets | |||||||
Gross Carrying Amount | 10,822 | 10,822 | 8,822 | ||||
Accumulated Amortization | (6,477) | (6,477) | (5,801) | ||||
Net Carrying Amount | 4,345 | 4,345 | 3,021 | ||||
Patents | Skyhook | |||||||
Amortizable intangible assets | |||||||
Useful life | 3 years 6 months | ||||||
Tradename | |||||||
Amortizable intangible assets | |||||||
Gross Carrying Amount | 2,838 | 2,838 | 2,788 | ||||
Accumulated Amortization | (1,061) | (1,061) | (788) | ||||
Net Carrying Amount | 1,777 | 1,777 | 2,000 | ||||
Capitalized software | |||||||
Amortizable intangible assets | |||||||
Gross Carrying Amount | 10,984 | 10,984 | 10,991 | ||||
Accumulated Amortization | (10,839) | (10,839) | (10,597) | ||||
Net Carrying Amount | 145 | 145 | 394 | ||||
Capitalized software | Skyhook | Minimum | |||||||
Amortizable intangible assets | |||||||
Useful life | 3 years | 3 years | |||||
Capitalized software | Skyhook | Maximum | |||||||
Amortizable intangible assets | |||||||
Useful life | 5 years | 5 years | |||||
Customer relationships | |||||||
Amortizable intangible assets | |||||||
Gross Carrying Amount | 10,212 | 10,212 | 10,212 | ||||
Accumulated Amortization | (3,735) | (3,735) | (2,712) | ||||
Net Carrying Amount | $ 6,477 | $ 6,477 | $ 7,500 | ||||
Patents tradename and customer relationship [member] | Skyhook | |||||||
Amortizable intangible assets | |||||||
Useful life | 5 years | ||||||
Tradename and customer relationships [member] | Skyhook | |||||||
Amortizable intangible assets | |||||||
Useful life | 5 years 6 months |
Debt (Details)
Debt (Details) | Sep. 30, 2015USD ($)shares | Apr. 07, 2015USD ($) | Oct. 31, 2014USD ($) | Oct. 30, 2014USD ($)item | Jul. 31, 2015USD ($) | Nov. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Mar. 27, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 25, 2013USD ($) |
Debt disclosures | ||||||||||
Debt outstanding | $ 372,000,000 | $ 372,000,000 | $ 372,000,000 | |||||||
Distribution to parent | $ 300,000,000 | |||||||||
Repayments of debt | 40,000,000 | |||||||||
Margin Loan Agreements | Charter | ||||||||||
Debt disclosures | ||||||||||
Number of common shares pledged as collateral | shares | 7,000,000 | |||||||||
Value of pledged collateral | $ 1,200,000,000 | $ 1,200,000,000 | ||||||||
Revolving Credit Facility | ||||||||||
Debt disclosures | ||||||||||
Maximum borrowing capacity | $ 234,000,000 | |||||||||
Basis spread on variable rate | 0.64% | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 234,000,000 | |||||||||
Proceeds from Issuance of Debt | $ 40,000,000 | |||||||||
Debt Instrument, Unused Borrowing Capacity Fee, Percent | 0.12% | 0.12% | ||||||||
Repayments of debt | $ 40,000,000 | |||||||||
Revolving Credit Facility | Three-month LIBOR | ||||||||||
Debt disclosures | ||||||||||
Interest rate basis | three-month LIBOR | |||||||||
BroadbandSPV | Margin Loan Agreements | ||||||||||
Debt disclosures | ||||||||||
Debt outstanding | $ 372,000,000 | $ 372,000,000 | ||||||||
Remaining borrowing capacity | 28,000,000 | $ 28,000,000 | ||||||||
BroadbandSPV | Margin Loan Agreements | Three-month LIBOR | ||||||||||
Debt disclosures | ||||||||||
Interest rate basis | three-month LIBOR | |||||||||
Basis spread on variable rate | 1.55% | |||||||||
BroadbandSPV | Margin Loan Agreements | ||||||||||
Debt disclosures | ||||||||||
Number of debt agreement | item | 2 | |||||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||||
Proceeds From Issuance Of Secured Debt | $ 320,000,000 | $ 52,000,000 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | |||||||||
TruePosition | Line of credit | ||||||||||
Debt disclosures | ||||||||||
Maximum borrowing capacity | $ 4,000,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | |||||||||
TruePosition | Standby Letters of Credit | ||||||||||
Debt disclosures | ||||||||||
Long-term Line of Credit | $ 0 | $ 0 | $ 634,000 | |||||||
Interest rate (as a percent) | 1.75% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock-Based Compensation | ||||
Stock-based compensation | $ 1,451 | $ 190 | $ 4,782 | $ 735 |
Operating expense | ||||
Stock-Based Compensation | ||||
Stock-based compensation | (12) | 4 | 10 | |
Selling, general and administrative | ||||
Stock-Based Compensation | ||||
Stock-based compensation | 1,292 | 126 | 4,534 | 494 |
Research and development | ||||
Stock-Based Compensation | ||||
Stock-based compensation | $ 171 | $ 64 | $ 244 | $ 231 |
Stock-Based Compensation (Det37
Stock-Based Compensation (Details) $ / shares in Units, shares in Thousands, $ in Millions | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares |
Options | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | $ 21 | $ 21 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 3 months 18 days | |
Common Stock, Capital Shares Reserved for Future Issuance | 3,700 | 3,700 |
Class C common stock | ||
Stock Based Compensation | ||
Vesting period | 2 years | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.03 | $ 15.03 |
Options | ||
Options granted (in shares) | 3 | |
2014 Plan | Awards | Class A common stock | ||
Options | ||
Outstanding beginning balance (in shares) | 807 | |
Exercised (in shares) | (61) | |
Forfeited/Cancelled (in shares) | (1) | |
Outstanding ending balance (in shares) | 745 | 745 |
Number of awards exercisable (in shares) | 631 | 631 |
WAEP Outstanding beginning balance (in dollars per share) | $ / shares | $ 32.21 | |
WAEP options exercised (in dollars per share) | $ / shares | 30.40 | |
WAEP options forfeited/cancelled (in dollars per share) | $ / shares | 37.19 | |
WAEP Outstanding ending balance (in dollars per share) | $ / shares | $ 32.36 | 32.36 |
WAEP options exercisable (in dollars per share) | $ / shares | $ 32.10 | $ 32.10 |
Weighted average remaining contractual life outstanding | 3 years 6 months | |
Weighted average remaining contractual life exercisable | 3 years 3 months 18 days | |
Aggregate intrinsic value outstanding | $ | $ 14 | $ 14 |
Aggregate intrinsic value exercisable | $ | $ 12 | $ 12 |
2014 Plan | Awards | Class C common stock | ||
Options | ||
Outstanding beginning balance (in shares) | 3,137 | |
Options granted (in shares) | 3 | |
Exercised (in shares) | (161) | |
Forfeited/Cancelled (in shares) | (2) | |
Outstanding ending balance (in shares) | 2,977 | 2,977 |
Number of awards exercisable (in shares) | 1,236 | 1,236 |
WAEP Outstanding beginning balance (in dollars per share) | $ / shares | $ 39.85 | |
WAEP Options granted (in dollars per share) | $ / shares | 53.86 | |
WAEP options exercised (in dollars per share) | $ / shares | 31.10 | |
WAEP options forfeited/cancelled (in dollars per share) | $ / shares | 37.19 | |
WAEP Outstanding ending balance (in dollars per share) | $ / shares | $ 40.34 | 40.34 |
WAEP options exercisable (in dollars per share) | $ / shares | $ 32.06 | $ 32.06 |
Weighted average remaining contractual life outstanding | 6 years 4 months 24 days | |
Weighted average remaining contractual life exercisable | 3 years 3 months 18 days | |
Aggregate intrinsic value outstanding | $ | $ 32 | $ 32 |
Aggregate intrinsic value exercisable | $ | $ 24 | $ 24 |
Stock-Based Compensation (Det38
Stock-Based Compensation (Details) shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)shares | |
TruePosition | PARs | |
PAR and PSU activity | |
Grants (in shares) | 120 |
TruePosition | PSUs | |
PAR and PSU activity | |
Grants (in shares) | 23 |
Skyhook | PARs | |
PAR and PSU activity | |
Grants (in shares) | 4,000 |
LTIPs | |
PAR and PSU activity | |
Fair value of outstanding grants | $ | $ 1.7 |
LTIPs | TruePosition | PARs and PSUs | |
PAR and PSU activity | |
Fair value of outstanding grants | $ | $ 3.9 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Aug. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Related party transactions | |||||
Payments to Liberty | $ (656,000) | $ (1,800,000) | |||
TruePosition | |||||
Related party transactions | |||||
Transfer of related party receivable to (from) note receivable | $ 5,300,000 | ||||
Liberty | TruePosition | |||||
Related party transactions | |||||
Payable (receivable), beginning balance | (5,953,000) | ||||
Cost and expenses charged | 3,900,000 | ||||
Amounts due under the tax-sharing arrangement | 2,071,000 | ||||
Transfer of related party receivable to (from) note receivable | 5,306,000 | ||||
Payments to Liberty | (3,867,000) | ||||
(Receivable) payable, ending balance | $ 1,457,000 | ||||
Liberty | TruePosition | Intercompany note arrangement | |||||
Related party transactions | |||||
Outstanding note receivable | $ 0 | $ 0 | $ 0 | ||
Three-month LIBOR | Liberty | TruePosition | |||||
Related party transactions | |||||
Interest rate basis | three-month LIBOR | ||||
Basis spread on variable rate | 2.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
TruePosition | ||||
Leases | ||||
Rental expense | $ 622 | $ 821 | $ 2,000 | $ 2,400 |
Commitments and Contingencies41
Commitments and Contingencies (Details) $ in Thousands | Sep. 30, 2015USD ($)item | Apr. 24, 2015USD ($) | Mar. 05, 2015item | Jul. 30, 2014USD ($) | Oct. 31, 2015USD ($) | Sep. 30, 2015USD ($)item |
Indemnification claim | ||||||
General Litigation | ||||||
Loss Contingency, Damages Sought, Value | $ 132 | |||||
Skyhook | Patent infringement lawsuit | ||||||
General Litigation | ||||||
Number of claims | item | 8 | |||||
Number of days before action is reopened | 45 days | |||||
Litigation settlement amount | $ 90,000 | |||||
Proceeds from Legal Settlements | $ 90,000 | |||||
Legal Fees | $ 29,500 | |||||
TruePosition | Polaris patent infringement lawsuit [Member] | ||||||
General Litigation | ||||||
Loss Contingency, Damages Sought, Value | $ 3,000 | |||||
TruePosition | Indemnification claim | ||||||
General Litigation | ||||||
Number of claims | item | 6 | 6 | ||||
Maximum estimated allocation | $ 132 | $ 132 | ||||
TruePosition | Antitrust lawsuit | ||||||
General Litigation | ||||||
Litigation settlement amount | $ 6,000 | |||||
AT&T | TruePosition | Indemnification claim | ||||||
General Litigation | ||||||
Payments for Legal Settlements | $ 55 |
Commitments and Contingencies42
Commitments and Contingencies (Details) - Revenue - Customer concentration - Significant customer - item | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Certain Risks and Concentrations | ||||
Number of major customers | 1 | |||
Concentration risk percentage | 84.00% | 82.00% | 79.00% | 83.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment information | |||||
Revenue | $ 15,225 | $ 17,445 | $ 41,186 | $ 51,512 | |
Adjusted OIBDA | 2,559 | 3,033 | (3,458) | (5,252) | |
Total assets | 3,611,517 | 3,611,517 | $ 3,003,932 | ||
Investments in affiliates | 2,432,487 | 2,432,487 | $ 2,498,804 | ||
Capital expenditures | 2,616 | 2,616 | |||
Corporate and Other | |||||
Segment information | |||||
Adjusted OIBDA | (3,059) | (9,139) | |||
Total assets | 3,445,021 | 3,445,021 | |||
Investments in affiliates | 2,432,487 | 2,432,487 | |||
Operating segments | |||||
Segment information | |||||
Revenue | 2,465,225 | 2,304,445 | 7,283,186 | 6,799,512 | |
Adjusted OIBDA | 833,559 | 770,033 | 2,425,542 | 2,297,748 | |
Total assets | 40,484,517 | 40,484,517 | |||
Investments in affiliates | 2,432,487 | 2,432,487 | |||
Capital expenditures | 1,294,616 | 1,294,616 | |||
Operating segments | TruePosition | |||||
Segment information | |||||
Revenue | 15,225 | 17,445 | 41,186 | 51,512 | |
Adjusted OIBDA | 5,618 | 3,033 | 5,681 | (5,252) | |
Total assets | 166,496 | 166,496 | |||
Capital expenditures | 2,616 | 2,616 | |||
Operating segments | Charter | |||||
Segment information | |||||
Revenue | 2,450,000 | 2,287,000 | 7,242,000 | 6,748,000 | |
Adjusted OIBDA | 831,000 | 767,000 | 2,429,000 | 2,303,000 | |
Total assets | 36,873,000 | 36,873,000 | |||
Capital expenditures | 1,292,000 | 1,292,000 | |||
Eliminate equity method affiliate | |||||
Segment information | |||||
Revenue | (2,450,000) | (2,287,000) | (7,242,000) | (6,748,000) | |
Adjusted OIBDA | (831,000) | $ (767,000) | (2,429,000) | $ (2,303,000) | |
Total assets | (36,873,000) | (36,873,000) | |||
Capital expenditures | $ (1,292,000) | $ (1,292,000) |
Segment Information (Details)44
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of segment Adjusted OIBDA to earnings (loss) before income taxes | ||||
Combined segment Adjusted OIBDA | $ 2,559 | $ 3,033 | $ (3,458) | $ (5,252) |
Stock-based compensation | (1,451) | (190) | (4,782) | (735) |
Depreciation and amortization | (820) | (2,479) | (4,920) | (6,583) |
Net gain on legal settlement | 6,000 | 60,505 | 6,000 | |
Interest expense | (1,816) | (5,496) | ||
Dividend and interest income | 605 | 1,228 | 1,871 | 4,231 |
Share of earnings (loss) of affiliates, net | (3,999) | (34,542) | (65,747) | (95,968) |
Gain Loss On Financial Instruments Net | (23,116) | (12,532) | (12,091) | 23,745 |
Gain (loss) on dilution of investment in affiliate | (851) | (10,953) | (2,113) | (61,162) |
Other, net | 10 | 8 | 34 | (60) |
Net earnings (loss) before income taxes | $ (28,879) | $ (50,427) | $ (36,197) | $ (135,784) |