Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 15, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36713 | |
Entity Registrant Name | LIBERTY BROADBAND CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1211994 | |
Entity Address, Address Line One | 12300 Liberty Boulevard | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | 720 | |
Local Phone Number | 875-5700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001611983 | |
Amendment Flag | false | |
Series A common stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Series A common stock | |
Trading Symbol | LBRDA | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 26,493,328 | |
Series B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,451,828 | |
Series C common stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Series C common stock | |
Trading Symbol | LBRDK | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 152,981,564 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 18,357 | $ 49,724 |
Other current assets | 2,665 | 2,409 |
Total current assets | 21,022 | 52,133 |
Investment in Charter, accounted for using the equity method (note 4) | 12,194,726 | 12,194,674 |
Other assets | 9,406 | 9,535 |
Total assets | 12,225,154 | 12,256,342 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 4,260 | 6,168 |
Deferred revenue and other current liabilities | 3,850 | 5,971 |
Total current liabilities | 8,110 | 12,139 |
Debt (note 5) | 573,269 | 572,944 |
Deferred income tax liabilities | 992,704 | 999,757 |
Other liabilities | 4,100 | 3,556 |
Total liabilities | 1,578,183 | 1,588,396 |
Equity | ||
Preferred stock, $.01 par value. Authorized 50,000,000 shares; no shares issued | ||
Additional paid-in capital | 7,876,950 | 7,890,084 |
Accumulated other comprehensive earnings, net of taxes | 8,158 | 8,158 |
Retained earnings (accumulated deficit) | 2,760,043 | 2,767,885 |
Total equity | 10,646,971 | 10,667,946 |
Commitments and contingencies (note 7) | ||
Total liabilities and equity | 12,225,154 | 12,256,342 |
Series A common stock | ||
Equity | ||
Common stock | 265 | 265 |
Series B common stock | ||
Equity | ||
Common stock | 25 | 25 |
Series C common stock | ||
Equity | ||
Common stock | $ 1,530 | $ 1,529 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Preferred stock par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 50,000,000 | 50,000,000 |
Preferred shares issued | 0 | 0 |
Series 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 | 26,493,328 | 26,493,197 |
Common Stock, Shares, Outstanding | 26,493,328 | 26,493,197 |
Series 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 | 2,451,828 | 2,451,920 |
Common Stock, Shares, Outstanding | 2,451,828 | 2,451,920 |
Series 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 | 152,981,564 | 152,956,316 |
Common Stock, Shares, Outstanding | 152,981,564 | 152,956,316 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total Revenue | $ 4,104 | $ 3,458 |
Operating costs and expenses | ||
Operating, including stock-based compensation (note 6) | 2,468 | 2,253 |
Selling, general and administrative, including stock-based compensation (note 6) | 8,418 | 6,938 |
Depreciation and amortization | 493 | 468 |
Total operating costs and expenses | 11,379 | 9,659 |
Operating income (loss) | (7,275) | (6,201) |
Other income (expense): | ||
Interest expense | (5,861) | (6,543) |
Share of earnings (losses) of affiliates (note 4) | 61,682 | 34,849 |
Gain (loss) on dilution of investment in affiliate (note 4) | (59,325) | (41,403) |
Other, net | 163 | 423 |
Earnings (loss) before income taxes | (10,616) | (18,875) |
Income tax benefit (expense) | 2,774 | 4,574 |
Net earnings (loss) attributable to Liberty Broadband shareholders | $ (7,842) | $ (14,301) |
Basic net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2) | $ (0.04) | $ (0.08) |
Diluted net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2) | $ (0.04) | $ (0.08) |
Software sales | ||
Revenue: | ||
Total Revenue | $ 3,994 | $ 3,458 |
Service | ||
Revenue: | ||
Total Revenue | $ 110 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (7,842) | $ (14,301) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 493 | 468 |
Stock-based compensation | 1,801 | 2,616 |
Share of (earnings) losses of affiliates, net | (61,682) | (34,849) |
(Gain) loss on dilution of investment in affiliate | 59,325 | 41,403 |
Deferred income tax expense (benefit) | (2,774) | (4,574) |
Other, net | 436 | 302 |
Changes in operating assets and liabilities: | ||
Current and other assets | (192) | 349 |
Payables and other liabilities | (4,066) | (2,975) |
Net cash provided (used) by operating activities | (14,501) | (11,561) |
Cash flows from investing activities: | ||
Capital expended for property and equipment | (15) | (17) |
Exercise of preemptive right to purchase Charter shares | (14,910) | |
Net cash provided (used) by investing activities | (14,925) | (17) |
Cash flows from financing activities: | ||
Taxes paid in lieu of shares issued for stock-based compensation | (1,944) | |
Other financing activities, net | 3 | 1,653 |
Net cash provided (used) by financing activities | (1,941) | 1,653 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (31,367) | (9,925) |
Cash, cash equivalents and restricted cash, beginning of period | 49,724 | 83,103 |
Cash, cash equivalents and restricted cash, end of period | $ 18,357 | $ 73,178 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity - USD ($) $ in Thousands | Series A common stockCommon stock | Series B common stockCommon stock | Series C common stockCommon stock | Additional paid-in capital | Accumulated other comprehensive earnings | Retained earnings | Total |
Balance at Dec. 31, 2018 | $ 263 | $ 25 | $ 1,526 | $ 7,938,357 | $ 7,778 | $ 2,650,669 | $ 10,598,618 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | (14,301) | (14,301) | |||||
Stock-based compensation | 2,523 | 2,523 | |||||
Issuance of common stock upon exercise of stock options | 1,653 | 1,653 | |||||
Noncontrolling interest activity at Charter | 1,262 | 1,262 | |||||
Balance at Mar. 31, 2019 | 263 | 25 | 1,526 | 7,943,795 | 7,778 | 2,636,368 | 10,589,755 |
Balance at Dec. 31, 2019 | 265 | 25 | 1,529 | 7,890,084 | 8,158 | 2,767,885 | 10,667,946 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | (7,842) | (7,842) | |||||
Stock-based compensation | 1,805 | 1,805 | |||||
Issuance of common stock upon exercise of stock options | 3 | 3 | |||||
Withholding taxes on net share settlements of stock-based compensation | (1,944) | (1,944) | |||||
Noncontrolling interest activity at Charter | 1 | (12,998) | (12,997) | ||||
Balance at Mar. 31, 2020 | $ 265 | $ 25 | $ 1,530 | $ 7,876,950 | $ 8,158 | $ 2,760,043 | $ 10,646,971 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation | |
Basis of Presentation | (1) Basis of Presentation During May 2014, the board of directors of Liberty Media Corporation and its subsidiaries (“Liberty”) authorized management to pursue a plan to spin-off to its stockholders common stock of a wholly-owned subsidiary, Liberty Broadband Corporation (“Liberty Broadband” or the “Company”), and to distribute subscription rights to acquire shares of Liberty Broadband’s common stock (the “Broadband Spin-Off”). These financial statements refer to Liberty Broadband Corporation as “Liberty Broadband,” “the Company,” “us,” “we” and “our” in the notes to the condensed consolidated financial statements. Through a number of prior years’ transactions, Liberty Broadband has acquired an interest in Charter Communications, Inc. (“Charter”). Pursuant to proxy agreements with GCI Liberty, Inc. (“GCI Liberty”) and Advance/Newhouse Partnership (“A/N”), Liberty Broadband controls 25.01% of the aggregate voting power of Charter. The Company’s wholly owned subsidiary, Skyhook Holding, Inc. (“Skyhook”), focuses on the development and sale of Skyhook’s device-based location technology. Skyhook markets and sells two primary products: (1) a location determination service called the Precision Location Solution; and (2) a location intelligence and data insights service called Geospatial Insights. The accompanying (a) condensed consolidated balance sheet as of December 31, 2019, 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, 2019. 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 the application of the equity method of accounting for investments in affiliates and accounting for income taxes to be its most significant estimates . In December 2019, Chinese officials reported a novel coronavirus outbreak (“COVID-19”). COVID-19 has since spread through China and internationally. On March 11, 2020, the World Health Organization assessed COVID-19 as a global pandemic, causing many countries throughout the world to take aggressive actions, including imposing travel restrictions and stay-at-home orders, closing public attractions and restaurants, and mandating social distancing practices. We are not presently aware of any events or circumstances arising from the COVID-19 pandemic that would require us to update our estimates or judgments or revise the carrying value of our assets or liabilities. Our estimates may change, however, as new events occur and additional information is obtained, any such changes will be recognized in the consolidated financial statements. Actual results could differ from estimates, and any such differences may be material to our financial statements. Liberty Broadband holds an investment in Charter 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. Spin-Off Arrangements 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 (for accounting purposes a related party of the Company) 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. Pursuant to the services agreement, Liberty provides Liberty Broadband with general and administrative services including legal, tax, accounting, treasury and investor relations support. See below for a description of an amendment to the services agreement in December 2019. 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 which will be negotiated semi-annually. Under these various agreements, amounts reimbursable to Liberty were approximately $1.1 million and $0.9 million for the three months ended March 31, 2020 and 2019, respectively. In December 2019, the Company entered into an amendment to the services agreement with Liberty in connection with Liberty’s entry into a new employment arrangement with Gregory B. Maffei, the Company’s President and Chief Executive Officer. Under the amended services agreement, components of his compensation will either be paid directly to him by each of the Company, Liberty TripAdvisor Holdings, Inc., GCI Liberty, and Qurate Retail, Inc. (collectively, the “Service Companies”) or reimbursed to Liberty, in each case, based on allocations among Liberty and the Service Companies set forth in the amended services agreement, currently set at 18% for the Company. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings (Loss) per Share | |
Earnings (Loss) per Share | (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 (“WASO”) 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 basic and diluted EPS calculations are based on the following weighted average number of shares of outstanding common stock. Liberty Broadband Common Stock Three months Three months ended ended March 31, 2020 March 31, 2019 (numbers of shares in thousands) Basic WASO 181,902 181,366 Potentially dilutive shares (1) 906 1,299 Diluted WASO 182,808 182,665 (1) Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive. |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 December 31, 2019 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 $ 12,489 12,489 — 48,174 48,174 — 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, current portion of debt and long-term debt. With the exception of long-term debt, the carrying amount approximates fair value due to the short maturity of these instruments as reported on our condensed consolidated balance sheets. The carrying value of our long-term debt bears interest at a variable rate and therefore is also considered to approximate fair value. |
Investment in Charter Accounted
Investment in Charter Accounted for Using the Equity Method | 3 Months Ended |
Mar. 31, 2020 | |
Investment in Charter Accounted for Using the Equity Method | |
Investment in Charter Accounted for Using the Equity Method | (4) Investment in Charter Accounted for Using the Equity Method Through a number of prior years’ transactions, Liberty Broadband has acquired an interest in Charter. The investment in Charter is accounted for as an equity method affiliate based on our voting and ownership interest and the board seats held by individuals appointed by Liberty Broadband. As of March 31, 2020, the carrying and market value of Liberty Broadband’s ownership in Charter was approximately $12,195 million and $23,608 million, respectively. Liberty Broadband’s ownership in Charter is 26.2% of the outstanding equity of Charter as of March 31, 2020. Pursuant to proxy agreements with GCI Liberty and A/N (the “GCI Liberty Proxy” and “A/N Proxy”, respectively), Liberty Broadband has an irrevocable proxy to vote certain shares of Charter common stock owned beneficially or of record by GCI Liberty and A/N, for a five year term expiring May 18, 2021, subject to extension upon the mutual agreement of both parties, subject to certain limitations. Liberty Broadband’s overall voting interest (23.2% at March 31, 2020) is diluted by the outstanding A/N interest in a subsidiary of Charter because the A/N interest has voting rights in Charter. As a result of the A/N Proxy and the GCI Liberty Proxy, Liberty Broadband controls 25.01% of the aggregate voting power of Charter and is Charter’s largest stockholder. Additionally, so long as the A/N Proxy is in effect, if A/N proposes to transfer common units of Charter Communications Holdings, LLC (which units are exchangeable into Charter shares and which will, under certain circumstances, result in the conversion of certain shares of Charter class B common stock into Charter shares) or Charter shares, in each case, constituting either (i) shares representing the first 7.0% of the outstanding voting power of Charter held by A/N or (ii) shares representing the last 7.0% of the outstanding voting power of Charter held by A/N, Liberty Broadband will have a right of first refusal (“ROFR”) to purchase all or a portion of any such securities A/N proposes to transfer. The purchase price per share for any securities sold to Liberty Broadband pursuant to the ROFR will be the volume-weighted average price of Charter shares for the two During the three months ended March 31, 2020, Liberty Broadband exercised its preemptive right to purchase an aggregate of approximately 35 thousand shares of Charter’s Class A common stock for an aggregate purchase price of $14.9 million. Investment in Charter The excess basis in our investment in Charter of $4,430 million as of March 31, 2020 is allocated within memo accounts used for equity accounting purposes as follows (amounts in millions): March 31, December 31, 2020 2019 Property and equipment $ 243 225 Customer relationships 1,151 1,043 Franchise fees 2,125 1,996 Trademarks 29 29 Goodwill 1,805 1,630 Debt (53) (9) Deferred income tax liability (870) (817) $ 4,430 4,097 Property and equipment and customer relationships have weighted average remaining useful lives of approximately 6 years and 10 years, respectively, and franchise fees, trademarks and goodwill have indefinite lives. The excess basis of outstanding debt is amortized over the contractual period using the straight-line method. The increase in excess basis for the three months ended March 31, 2020, was primarily due to Charter’s share buyback program. The Company’s share of earnings (losses) of affiliates line item in the accompanying condensed consolidated statements of operations includes expenses of $40.1 million and $25.6 million, net of related taxes, for the three months ended March 31, 2020 and 2019, respectively, due to the amortization of the excess basis related to assets with identifiable useful lives and debt. The Company had a dilution loss of $59.3 million and $41.4 million during the three months ended March 31, 2020 and 2019, respectively. The dilution losses for the periods presented were attributable to stock option exercises by employees and other third parties at prices below Liberty Broadband’s book basis per share. Summarized unaudited financial information for Charter is as follows (amounts in millions): Charter condensed consolidated balance sheets March 31, 2020 December 31, 2019 Current assets $ 5,787 6,537 Property and equipment, net 34,096 34,591 Goodwill 29,554 29,554 Intangible assets, net 74,277 74,775 Other assets 2,838 2,731 Total assets $ 146,552 148,188 Current liabilities 13,215 12,385 Deferred income taxes 17,665 17,711 Long-term debt 74,787 75,578 Other liabilities 4,163 3,703 Equity 36,722 38,811 Total liabilities and shareholders’ equity $ 146,552 148,188 Charter condensed consolidated statements of operations Three months ended March 31, 2020 2019 Revenue $ 11,738 11,206 Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) 7,432 7,236 Depreciation and amortization 2,497 2,550 Other operating (income) expenses, net 7 (5) 9,936 9,781 Operating income 1,802 1,425 Interest expense, net (980) (925) Other income (expense), net (326) (64) Income tax benefit (expense) (29) (119) Net income (loss) 467 317 Less: Net income attributable to noncontrolling interests (71) (64) Net income (loss) attributable to Charter shareholders $ 396 253 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt | |
Debt | (5) Debt Amended 2017 Margin Loan Facility On August 19, 2019, a bankruptcy remote wholly owned subsidiary of the Company (“SPV”), entered into Amendment No. 2 to its multi-draw margin loan credit facility (the “Amended 2017 Margin Loan Facility” and, the credit agreement governing such facility, the “Amended 2017 Margin Loan Agreement”) with Wilmington Trust, National Association as the successor administrative agent, BNP Paribas, Dublin Branch, as the successor calculation agent, and the lenders thereunder. SPV is permitted, subject to certain funding conditions, to borrow term loans up to an aggregate principal amount equal to $1.0 billion. SPV will also have the ability from time to time to request additional loans in an aggregate principal amount of up to $1.0 billion on an uncommitted basis subject to certain conditions. Outstanding borrowings under the facility were $575 million as of March 31, 2020 and December 31, 2019. As of March 31, 2020, SPV was permitted to borrow an additional $425 million, which may be drawn through August 19, 2020. The maturity date of the loans under the Amended 2017 Margin Loan Agreement is August 24, 2021 (except for any incremental loans incurred thereunder to the extent SPV and the incremental lenders agree to a later maturity date). Borrowings under the Amended 2017 Margin Loan Agreement bear interest at the three-month LIBOR rate plus a per annum spread of 1.5%. Borrowings outstanding under this margin loan bore interest at a rate of 2.95% per annum at March 31, 2020 and is payable quarterly in arrears. The Amended 2017 Margin Loan Agreement contains various affirmative and negative covenants that restrict the activities of the SPV (and, in some cases, the Company and its subsidiaries with respect to shares of Charter owned by the Company and its subsidiaries). The Amended 2017 Margin Loan Agreement does not include any financial covenants. The Amended 2017 Margin Loan Agreement also contains restrictions related to additional indebtedness and events of default customary for margin loans of this type. SPV’s obligations under the Amended 2017 Margin Loan Agreement are secured by first priority liens on a portion of the Company’s ownership interest in Charter, sufficient for SPV to meet the loan to value requirements under the Amended 2017 Margin Loan Agreement. The Amended 2017 Margin Loan Agreement indicates 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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | (6) Stock-Based Compensation Liberty Broadband grants, to certain of its directors, employees and employees of its subsidiaries, restricted stock, restricted stock units and stock options 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 (“GDFV”) 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 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 months ended March 31, 2020 and 2019 (amounts in thousands): Three months ended March 31, 2020 2019 Operating expense $ 1 37 Selling, general and administrative 1,800 2,579 $ 1,801 2,616 Liberty Broadband – Grants of Stock Options During the three months ended March 31, 2020, Liberty Broadband granted 100 thousand options to purchase shares of Series C Liberty Broadband common stock to our CEO. Such options had a GDFV of $27.39 per share and vest on December 31, 2020. There were no options to purchase shares of Series A or Series B The Company calculates the GDFV 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. The volatility used in the calculation for Awards is based on the historical volatility of Liberty Broadband common stock. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options. Liberty Broadband – Outstanding Awards The following tables present 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, 2020 4 $ 47.92 Granted — $ — Exercised — $ — Forfeited/cancelled — $ — Outstanding at March 31, 2020 4 $ 47.85 1.8 $ — Exercisable at March 31, 2020 4 $ 47.85 1.8 $ — Weighted average remaining Aggregate contractual intrinsic Series C WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2020 1,932 $ 61.43 Granted 104 $ 112.29 Exercised (1) $ 51.98 Forfeited/cancelled — $ — Outstanding at March 31, 2020 2,035 $ 64.02 5.1 $ 98 Exercisable at March 31, 2020 1,622 $ 50.00 4.7 $ 98 As of March 31, 2020, the total unrecognized compensation cost related to unvested Awards was approximately $11.2 million. Such amount will be recognized in the Company's condensed consolidated statements of operations over a weighted average period of approximately 2.3 years. As of March 31, 2020, Liberty Broadband reserved 2.0 million shares of Series A and Series C common stock for issuance under exercise privileges of outstanding stock Awards. Skyhook Equity Incentive Plans Long-Term Incentive Plans Skyhook has a long-term incentive plan which provides for the granting of phantom stock appreciation rights and phantom stock units to employees, directors, and consultants of Skyhook that is not significant to Liberty Broadband. As of March 31, 2020 and December 31, 2019, $1.2 million are included in other liabilities for the fair value (Level 2) of the Company’s long-term incentive plan obligations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | (7) Commitments and Contingencies General Litigation In the ordinary course of business, the Company and its consolidated subsidiary 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. Certain Risks and Concentrations The Skyhook business is subject to certain risks and concentrations including dependence on relationships with its customers. The Company’s largest customers, that accounted for greater than 10% of revenue individually, aggregated 58% and 73% of total revenue for the three months ended March 31, 2020 and 2019, respectively. 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 | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information | |
Segment Information | (8) 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 or losses represent 10% or more of Liberty Broadband’s annual pre-tax earnings (losses). 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. For segment reporting purposes, 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 by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. 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 three months ended March 31, 2020, Liberty Broadband has identified the following consolidated company and equity method investment as its reportable segments: ● Skyhook—a wholly owned subsidiary of the Company that provides the Precision Location Solution (a location determination service) and Geospatial Insights product (a location intelligence and data insights service). ● Charter—an equity method investment 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 included in our Annual Report on Form 10-K for the year ended December 31, 2019. 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 March 31, 2020 2019 Adjusted Adjusted Revenue OIBDA Revenue OIBDA (amounts in thousands) Skyhook $ 4,104 (722) 3,458 (1,193) Charter 11,738,000 4,389,000 11,206,000 4,060,000 Corporate and other — (4,259) — (1,924) 11,742,104 4,384,019 11,209,458 4,056,883 Eliminate equity method affiliate (11,738,000) (4,389,000) (11,206,000) (4,060,000) Consolidated Liberty Broadband $ 4,104 (4,981) 3,458 (3,117) Other Information March 31, 2020 Total Investments Capital assets in affiliates expenditures (amounts in thousands) Skyhook $ 14,680 — 15 Charter 146,552,000 — 1,461,000 Corporate and other 12,210,474 12,194,726 — 158,777,154 12,194,726 1,461,015 Eliminate equity method affiliate (146,552,000) — (1,461,000) Consolidated Liberty Broadband $ 12,225,154 12,194,726 15 The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes: Three months ended March 31, 2020 2019 (amounts in thousands) Adjusted OIBDA $ (4,981) (3,117) Stock-based compensation (1,801) (2,616) Depreciation and amortization (493) (468) Operating income (loss) (7,275) (6,201) Interest expense (5,861) (6,543) Share of earnings (loss) of affiliates, net 61,682 34,849 Gain (loss) on dilution of investment in affiliate (59,325) (41,403) Other, net 163 423 Earnings (loss) before income taxes $ (10,616) (18,875) |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings (Loss) per Share | |
Schedule of weighted average number of shares | Liberty Broadband Common Stock Three months Three months ended ended March 31, 2020 March 31, 2019 (numbers of shares in thousands) Basic WASO 181,902 181,366 Potentially dilutive shares (1) 906 1,299 Diluted WASO 182,808 182,665 (1) Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive. |
Assets and Liabilities Measur_2
Assets and Liabilities Measured at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Assets and Liabilities Measured at Fair Value | |
Schedule of assets and liabilities measured at fair value | March 31, 2020 December 31, 2019 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 $ 12,489 12,489 — 48,174 48,174 — |
Investment in Charter Account_2
Investment in Charter Accounted for Using the Equity Method (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment in Charter Accounted for Using the Equity Method | |
Schedule of allocation of excess basis within memo accounts used for equity accounting purposes | The excess basis in our investment in Charter of $4,430 million as of March 31, 2020 is allocated within memo accounts used for equity accounting purposes as follows (amounts in millions): March 31, December 31, 2020 2019 Property and equipment $ 243 225 Customer relationships 1,151 1,043 Franchise fees 2,125 1,996 Trademarks 29 29 Goodwill 1,805 1,630 Debt (53) (9) Deferred income tax liability (870) (817) $ 4,430 4,097 |
Summary of financial information for Charter | Summarized unaudited financial information for Charter is as follows (amounts in millions): Charter condensed consolidated balance sheets March 31, 2020 December 31, 2019 Current assets $ 5,787 6,537 Property and equipment, net 34,096 34,591 Goodwill 29,554 29,554 Intangible assets, net 74,277 74,775 Other assets 2,838 2,731 Total assets $ 146,552 148,188 Current liabilities 13,215 12,385 Deferred income taxes 17,665 17,711 Long-term debt 74,787 75,578 Other liabilities 4,163 3,703 Equity 36,722 38,811 Total liabilities and shareholders’ equity $ 146,552 148,188 Charter condensed consolidated statements of operations Three months ended March 31, 2020 2019 Revenue $ 11,738 11,206 Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) 7,432 7,236 Depreciation and amortization 2,497 2,550 Other operating (income) expenses, net 7 (5) 9,936 9,781 Operating income 1,802 1,425 Interest expense, net (980) (925) Other income (expense), net (326) (64) Income tax benefit (expense) (29) (119) Net income (loss) 467 317 Less: Net income attributable to noncontrolling interests (71) (64) Net income (loss) attributable to Charter shareholders $ 396 253 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock-based compensation expense | Included in the accompanying condensed consolidated statements of operations are the following amounts of stock-based compensation for the three months ended March 31, 2020 and 2019 (amounts in thousands): Three months ended March 31, 2020 2019 Operating expense $ 1 37 Selling, general and administrative 1,800 2,579 $ 1,801 2,616 |
Series A common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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, 2020 4 $ 47.92 Granted — $ — Exercised — $ — Forfeited/cancelled — $ — Outstanding at March 31, 2020 4 $ 47.85 1.8 $ — Exercisable at March 31, 2020 4 $ 47.85 1.8 $ — |
Series C common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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, 2020 1,932 $ 61.43 Granted 104 $ 112.29 Exercised (1) $ 51.98 Forfeited/cancelled — $ — Outstanding at March 31, 2020 2,035 $ 64.02 5.1 $ 98 Exercisable at March 31, 2020 1,622 $ 50.00 4.7 $ 98 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information | |
Schedule of performance measures | Three months ended March 31, 2020 2019 Adjusted Adjusted Revenue OIBDA Revenue OIBDA (amounts in thousands) Skyhook $ 4,104 (722) 3,458 (1,193) Charter 11,738,000 4,389,000 11,206,000 4,060,000 Corporate and other — (4,259) — (1,924) 11,742,104 4,384,019 11,209,458 4,056,883 Eliminate equity method affiliate (11,738,000) (4,389,000) (11,206,000) (4,060,000) Consolidated Liberty Broadband $ 4,104 (4,981) 3,458 (3,117) |
Schedule of segment reporting information | March 31, 2020 Total Investments Capital assets in affiliates expenditures (amounts in thousands) Skyhook $ 14,680 — 15 Charter 146,552,000 — 1,461,000 Corporate and other 12,210,474 12,194,726 — 158,777,154 12,194,726 1,461,015 Eliminate equity method affiliate (146,552,000) — (1,461,000) Consolidated Liberty Broadband $ 12,225,154 12,194,726 15 |
Schedule of reconciliation of segment Adjusted OIBDA to earnings (loss) before income taxes | Three months ended March 31, 2020 2019 (amounts in thousands) Adjusted OIBDA $ (4,981) (3,117) Stock-based compensation (1,801) (2,616) Depreciation and amortization (493) (468) Operating income (loss) (7,275) (6,201) Interest expense (5,861) (6,543) Share of earnings (loss) of affiliates, net 61,682 34,849 Gain (loss) on dilution of investment in affiliate (59,325) (41,403) Other, net 163 423 Earnings (loss) before income taxes $ (10,616) (18,875) |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)product | Mar. 31, 2019USD ($) | |
Liberty | ||
Reimbursable amount | $ | $ 1.1 | $ 0.9 |
Liberty | CEO | ||
CEO compensation allocation percentage | 18.00% | |
Skyhook | ||
Number of primary products | product | 2 | |
Charter | ||
Non-diluted voting interest | 25.01% |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings (Loss) per Share | ||
Basic WASO | 181,902 | 181,366 |
Potentially dilutive shares | 906 | 1,299 |
Diluted WASO | 182,808 | 182,665 |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets and Liabilities Measured at Fair Value | ||
Cash equivalents | $ 12,489 | $ 48,174 |
Level 1 | ||
Assets and Liabilities Measured at Fair Value | ||
Cash equivalents | $ 12,489 | $ 48,174 |
Investments in Charter Accounte
Investments in Charter Accounted for Using the Equity Method (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Investments in affiliates accounted for using the Equity Method | ||
Carrying value of equity method investment | $ 12,194,726 | $ 12,194,674 |
Charter | ||
Investments in affiliates accounted for using the Equity Method | ||
Carrying value of equity method investment | 12,195,000 | |
Market value of equity method investment | $ 23,608,000 | |
Ownership percentage | 26.20% | |
Diluted voting interest | 23.20% | |
Non-diluted voting interest | 25.01% | |
A/N | Charter | ||
Investments in affiliates accounted for using the Equity Method | ||
Proxy agreement term | 5 years | |
Trading days before proposed sale of A/N | 2 days | |
first | A/N | Charter | ||
Investments in affiliates accounted for using the Equity Method | ||
Maximum percentage of New Charter shares that may be voted by proxy | 7.00% | |
last | A/N | Charter | ||
Investments in affiliates accounted for using the Equity Method | ||
Maximum percentage of New Charter shares that may be voted by proxy | 7.00% |
Investments in Charter Accoun_2
Investments in Charter Accounted for Using the Equity Method (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Investments in affiliates accounted for using the Equity Method | |||
Exercise of preemptive right to purchase Charter shares | $ 14,910 | ||
Excess basis allocation within memo accounts | |||
Loss on dilution of investment in affiliate | (59,325) | $ (41,403) | |
Charter | |||
Excess basis allocation within memo accounts | |||
Property and equipment | 243,000 | $ 225,000 | |
Customer relationships | 1,151,000 | 1,043,000 | |
Franchise fees | 2,125,000 | 1,996,000 | |
Trademarks | 29,000 | 29,000 | |
Goodwill | 1,805,000 | 1,630,000 | |
Debt | (53,000) | (9,000) | |
Deferred income tax liability | (870,000) | (817,000) | |
Total | 4,430,000 | $ 4,097,000 | |
Excess basis amortization of debt and intangible assets | 40,100 | 25,600 | |
Loss on dilution of investment in affiliate | $ (59,300) | $ (41,400) | |
Charter | Customer relationships | |||
Excess basis allocation within memo accounts | |||
Remaining useful lives of customer relationships | 10 years | ||
Charter | Property, Plant and Equipment | |||
Excess basis allocation within memo accounts | |||
Remaining useful lives of property and equipment | 6 years | ||
Charter | Series A common stock | |||
Investments in affiliates accounted for using the Equity Method | |||
Exercise of preemptive right to purchase Charter shares | 35 | ||
Exercise of preemptive right to purchase Charter shares | $ 14,900 |
Investments in Charter Accoun_3
Investments in Charter Accounted for Using the Equity Method (Details) - Charter - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Charter consolidated balance sheet | |||
Current assets | $ 5,787 | $ 6,537 | |
Property and equipment, net | 34,096 | 34,591 | |
Goodwill | 29,554 | 29,554 | |
Intangible assets, net | 74,277 | 74,775 | |
Other assets | 2,838 | 2,731 | |
Total assets | 146,552 | 148,188 | |
Current liabilities | 13,215 | 12,385 | |
Deferred income taxes | 17,665 | 17,711 | |
Long-term debt | 74,787 | 75,578 | |
Other liabilities | 4,163 | 3,703 | |
Equity | 36,722 | 38,811 | |
Total liabilities and shareholders' equity | 146,552 | $ 148,188 | |
Charter consolidated statement of operations | |||
Revenue | 11,738 | $ 11,206 | |
Operating costs and expenses (excluding depreciation and amortization) | 7,432 | 7,236 | |
Depreciation and amortization | 2,497 | 2,550 | |
Other operating (income) expenses, net | 7 | (5) | |
Total operating costs and expenses | 9,936 | 9,781 | |
Operating income | 1,802 | 1,425 | |
Interest expense, net | (980) | (925) | |
Other income (expense), net | (326) | (64) | |
Income tax (expense) benefit | (29) | (119) | |
Net earnings (loss) | 467 | 317 | |
Less: Net income attributable to noncontrolling interests | (71) | (64) | |
Net income (loss) attributable to Charter shareholders | $ 396 | $ 253 |
Debt (Details)
Debt (Details) - Amended 2017 Margin Loan Agreement - USD ($) $ in Thousands | Aug. 19, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Charter | |||
Debt disclosures | |||
Number of common shares pledged as collateral | 6,800,000 | ||
Value of pledged collateral | $ 3,000,000 | ||
SPV | |||
Debt disclosures | |||
Maximum borrowing capacity | $ 1,000,000 | ||
Additional allowed borrowing capacity | $ 1,000,000 | ||
Remaining borrowing capacity | $ 425,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.95% | ||
Amount outstanding | $ 575,000 | $ 575,000 | |
SPV | Three-month LIBOR | |||
Debt disclosures | |||
Interest rate basis | three-month LIBOR | ||
Basis spread on variable rate | 1.50% |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock Based Compensation | ||
Stock-based compensation | $ 1,801 | $ 2,616 |
Operating expense | ||
Stock Based Compensation | ||
Stock-based compensation | 1 | 37 |
Selling, general and administrative | ||
Stock Based Compensation | ||
Stock-based compensation | $ 1,800 | $ 2,579 |
Stock-Based Compensation - Ince
Stock-Based Compensation - Incentive Plans and Grants of Stock Awards (Details) - Options | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
CEO | Series C common stock | |
Stock Based Compensation | |
Options granted (in shares) | 100,000 |
Grant date fair value | $ / shares | $ 27.39 |
2014 Plan | |
Fair value assumptions | |
Dividend rate | 0.00% |
2014 Plan | Series A common stock | |
Stock Based Compensation | |
Options granted (in shares) | 0 |
2014 Plan | Series C common stock | |
Stock Based Compensation | |
Options granted (in shares) | 104,000 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding Awards and Exercises (Details) - 2014 Plan - Options $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Compensation cost not yet recognized | |
Unrecognized compensation cost options | $ | $ 11.2 |
Period over which unrecognized compensation cost will be recognized | 2 years 3 months 18 days |
Common Stock Class A and C | |
Options additional disclosures | |
Shares reserved for future issuance upon exercise of stock options | 2,000,000 |
Series A common stock | |
Options | |
Outstanding beginning balance (in shares) | 4,000 |
Options granted (in shares) | 0 |
Outstanding ending balance (in shares) | 4,000 |
Number of awards exercisable (in shares) | 4,000 |
WAEP | |
WAEP Outstanding beginning balance (in dollars per share) | $ / shares | $ 47.92 |
WAEP Outstanding ending balance (in dollars per share) | $ / shares | 47.85 |
WAEP options exercisable (in dollars per share) | $ / shares | $ 47.85 |
Options additional disclosures | |
Weighted average remaining contractual life outstanding | 1 year 9 months 18 days |
Weighted average remaining contractual life exercisable | 1 year 9 months 18 days |
Series C common stock | |
Options | |
Outstanding beginning balance (in shares) | 1,932,000 |
Options granted (in shares) | 104,000 |
Exercised (in shares) | (1,000) |
Outstanding ending balance (in shares) | 2,035,000 |
Number of awards exercisable (in shares) | 1,622,000 |
WAEP | |
WAEP Outstanding beginning balance (in dollars per share) | $ / shares | $ 61.43 |
WAEP Options granted (in dollars per share) | $ / shares | 112.29 |
WAEP options exercised (in dollars per share) | $ / shares | 51.98 |
WAEP Outstanding ending balance (in dollars per share) | $ / shares | 64.02 |
WAEP options exercisable (in dollars per share) | $ / shares | $ 50 |
Options additional disclosures | |
Weighted average remaining contractual life outstanding | 5 years 1 month 6 days |
Weighted average remaining contractual life exercisable | 4 years 8 months 12 days |
Aggregate intrinsic value outstanding | $ | $ 98 |
Aggregate intrinsic value exercisable | $ | $ 98 |
Series B common stock | |
Options | |
Options granted (in shares) | 0 |
Stock-based Compensation - Othe
Stock-based Compensation - Other than Options (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Skyhook | LTIPs | PARs and PSUs | Other liabilities | Level 2 | ||
Stock Based Compensation | ||
Deferred compensation | $ 1.2 | $ 1.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | Customer concentration | ||
Certain Risks and Concentrations | ||
Concentration Risk, Percentage | 58.00% | 73.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment information | |||
Total Revenue | $ 4,104 | $ 3,458 | |
Adjusted OIBDA | (4,981) | (3,117) | |
Total assets | 12,225,154 | $ 12,256,342 | |
Investments in affiliates | 12,194,726 | $ 12,194,674 | |
Capital expenditures | $ 15 | ||
Charter | |||
Segment information | |||
Financial results included in the disclosure (as a percent) | 100.00% | ||
Operating segments | Skyhook | |||
Segment information | |||
Total Revenue | $ 4,104 | 3,458 | |
Adjusted OIBDA | (722) | (1,193) | |
Total assets | 14,680 | ||
Capital expenditures | 15 | ||
Operating segments | Charter | |||
Segment information | |||
Total Revenue | 11,738,000 | 11,206,000 | |
Adjusted OIBDA | 4,389,000 | 4,060,000 | |
Total assets | 146,552,000 | ||
Capital expenditures | 1,461,000 | ||
Corporate and other | |||
Segment information | |||
Adjusted OIBDA | (4,259) | (1,924) | |
Total assets | 12,210,474 | ||
Investments in affiliates | 12,194,726 | ||
Operating Segments and Corporate and Other | |||
Segment information | |||
Total Revenue | 11,742,104 | 11,209,458 | |
Adjusted OIBDA | 4,384,019 | 4,056,883 | |
Total assets | 158,777,154 | ||
Investments in affiliates | 12,194,726 | ||
Capital expenditures | 1,461,015 | ||
Eliminate equity method affiliate | |||
Segment information | |||
Total Revenue | (11,738,000) | (11,206,000) | |
Adjusted OIBDA | (4,389,000) | $ (4,060,000) | |
Total assets | (146,552,000) | ||
Capital expenditures | $ (1,461,000) |
Segment Information (Details)_2
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of consolidated segment Adjusted OIBDA to earnings (loss) before income taxes | ||
Adjusted OIBDA | $ (4,981) | $ (3,117) |
Stock-based compensation | (1,801) | (2,616) |
Depreciation and amortization | (493) | (468) |
Operating income (loss) | (7,275) | (6,201) |
Interest expense | (5,861) | (6,543) |
Share of earnings (loss) of affiliates, net | 61,682 | 34,849 |
Gain (loss) on dilution of investment in affiliate | (59,325) | (41,403) |
Other, net | 163 | 423 |
Earnings (loss) before income taxes | $ (10,616) | $ (18,875) |