Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 | 2023 | |
Document Fiscal Period Focus | Q2 | |
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 | 18,230,229 | |
Series B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,028,632 | |
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 | 125,954,241 | |
Series A Cumulative Redeemable Preferred Stock. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Series A Cumulative Redeemable preferred stock | |
Trading Symbol | LBRDP | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 81 | $ 375 |
Trade and other receivables, net of allowance for credit losses of $5 and $4, respectively | 183 | 201 |
Prepaid and other current assets | 129 | 84 |
Total current assets | 393 | 660 |
Property and equipment, net | 1,013 | 1,011 |
Intangible assets not subject to amortization | ||
Goodwill | 755 | 755 |
Intangible assets subject to amortization, net (note 5) | 492 | 516 |
Other assets, net | 253 | 180 |
Total assets | 15,409 | 15,142 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 92 | 92 |
Deferred revenue | 24 | 20 |
Current portion of debt, including $2 and $1,373 measured at fair value, respectively (note 6) | 5 | 1,376 |
Indemnification obligation (note 3) | 10 | 50 |
Other current liabilities | 63 | 137 |
Total current liabilities | 194 | 1,675 |
Long-term debt, net, including $1,233 and zero measured at fair value, respectively (note 6) | 3,729 | 2,425 |
Obligations under tower obligations and finance leases, excluding current portion | 84 | 86 |
Long-term deferred revenue | 63 | 63 |
Deferred income tax liabilities | 2,146 | 2,040 |
Preferred stock (note 7) | 202 | 202 |
Other liabilities | 152 | 150 |
Total liabilities | 6,570 | 6,641 |
Equity | ||
Additional paid-in capital | 3,286 | 3,318 |
Accumulated other comprehensive earnings (loss), net of taxes | 56 | 9 |
Retained earnings | 5,476 | 5,155 |
Total stockholders' equity | 8,819 | 8,483 |
Non-controlling interests | 20 | 18 |
Total equity | 8,839 | 8,501 |
Commitments and contingencies (note 9) | ||
Total liabilities and equity | 15,409 | 15,142 |
Cable certificates | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 550 | 550 |
Other amortizable intangible assets | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 37 | 37 |
Series A common stock | ||
Equity | ||
Common stock | ||
Series B common stock | ||
Equity | ||
Common stock | ||
Series C common stock | ||
Equity | ||
Common stock | 1 | 1 |
Charter. | ||
Current assets: | ||
Investment in Charter, accounted for using the equity method (note 4) | $ 11,916 | $ 11,433 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Allowance for credit losses | $ 5 | $ 4 |
Short-term debt, measured at fair value | 2 | 1,373 |
Long-term debt, measured at fair value | $ 1,233 | $ 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 | 18,230,229 | 18,528,468 |
Common Stock, Shares, Outstanding | 18,230,229 | 18,528,468 |
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 | 2,028,632 | 2,106,636 |
Common Stock, Shares, Outstanding | 2,028,632 | 2,106,636 |
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 | 125,954,241 | 125,962,296 |
Common Stock, Shares, Outstanding | 125,954,241 | 125,962,296 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue: | ||||
Revenue | $ 245 | $ 239 | $ 491 | $ 477 |
Revenue, Product and Service [Extensible List] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Operating costs and expenses: | ||||
Operating expense (exclusive of depreciation and amortization shown separately below) | $ 59 | $ 60 | $ 121 | $ 126 |
Selling, general and administrative, including stock-based compensation (note 8) | 107 | 105 | 217 | 206 |
Depreciation and amortization | 56 | 65 | 114 | 129 |
Litigation settlement (note 9) | 10 | 10 | ||
Total operating costs and expenses | 222 | 240 | 452 | 471 |
Operating income (loss) | 23 | (1) | 39 | 6 |
Other income (expense): | ||||
Interest expense (including amortization of deferred loan fees) | (52) | (30) | (97) | (56) |
Share of earnings (losses) of affiliate (note 4) | 318 | 386 | 566 | 689 |
Gain (loss) on dilution of investment in affiliate (note 4) | (5) | (11) | (32) | (67) |
Realized and unrealized gains (losses) on financial instruments, net (note 3) | 40 | 77 | (74) | 214 |
Gain (loss) on dispositions, net (note 1) | 179 | 179 | ||
Other, net | 2 | (18) | 16 | (39) |
Earnings (loss) before income taxes | 326 | 582 | 418 | 926 |
Income tax benefit (expense) | (74) | (117) | (97) | (162) |
Net earnings (loss) | 252 | 465 | 321 | 764 |
Net earnings (loss) attributable to Liberty Broadband shareholders | $ 252 | $ 465 | $ 321 | $ 764 |
Basic net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2) | $ 1.73 | $ 2.89 | $ 2.20 | $ 4.66 |
Diluted net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2) | $ 1.71 | $ 2.87 | $ 2.18 | $ 4.63 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Condensed Consolidated Statements of Comprehensive Earnings (Loss) | ||||
Net earnings (loss) | $ 252 | $ 465 | $ 321 | $ 764 |
Other comprehensive earnings (loss), net of taxes: | ||||
Credit risk on fair value debt instruments gains (loss) | (3) | 20 | 47 | 16 |
Other comprehensive earnings (loss), net of taxes | (3) | 20 | 47 | 16 |
Comprehensive earnings (loss) | 249 | 485 | 368 | 780 |
Comprehensive earnings (loss) attributable to Liberty Broadband shareholders | $ 249 | $ 485 | $ 368 | $ 780 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 321 | $ 764 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 114 | 129 |
Stock-based compensation | 16 | 18 |
Litigation settlement | 10 | |
Share of (earnings) losses of affiliate, net | (566) | (689) |
(Gain) loss on dilution of investment in affiliate | 32 | 67 |
Realized and unrealized (gains) losses on financial instruments, net | 74 | (214) |
Deferred income tax expense (benefit) | 95 | 1 |
(Gain) loss on dispositions, net | (179) | |
Other, net | (2) | (3) |
Changes in operating assets and liabilities: | ||
Current and other assets | (40) | 113 |
Payables and other liabilities | (99) | 1 |
Net cash provided by (used in) operating activities | (55) | 18 |
Cash flows from investing activities: | ||
Capital expenditures | (97) | (78) |
Grant proceeds received for capital expenditures | 2 | |
Cash received for Charter shares repurchased by Charter | 42 | 1,806 |
Cash proceeds from dispositions, net | 163 | |
Cash released from escrow related to dispositions | 23 | |
Purchases of investments | (53) | |
Other investing activities, net | 2 | 4 |
Net cash provided by (used in) investing activities | (81) | 1,895 |
Cash flows from financing activities: | ||
Borrowings of debt | 1,451 | 300 |
Repayments of debt, tower obligations and finance leases | (1,545) | (203) |
Repurchases of Liberty Broadband common stock | (40) | (1,890) |
Indemnification payment to Qurate Retail | (25) | |
Other financing activities, net | (2) | (3) |
Net cash provided by (used in) financing activities | (161) | (1,796) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (297) | 117 |
Cash, cash equivalents and restricted cash, beginning of period | 400 | 206 |
Cash, cash equivalents and restricted cash, end of period | $ 103 | $ 323 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Cash and cash equivalents | $ 81 | $ 375 |
Total cash and cash equivalents and restricted cash at end of period | 103 | 400 |
Other Noncurrent Assets | ||
Restricted cash | 2 | 1 |
Other current assets | ||
Restricted cash | $ 20 | $ 24 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Series C common stock Common stock | Additional paid-in capital | Accumulated other comprehensive earnings | Retained earnings | Noncontrolling interest in equity of subsidiaries | Total |
Balance at Dec. 31, 2021 | $ 1 | $ 6,214 | $ 14 | $ 3,898 | $ 12 | $ 10,139 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 764 | 764 | ||||
Other comprehensive earnings (loss), net of taxes | 16 | 16 | ||||
Stock-based compensation | 18 | 18 | ||||
Liberty Broadband stock repurchases | (1,890) | (1,890) | ||||
Noncontrolling interest activity at Charter and other | (23) | 4 | (19) | |||
Balance at Jun. 30, 2022 | 1 | 4,319 | 30 | 4,662 | 16 | 9,028 |
Balance at Mar. 31, 2022 | 1 | 5,375 | 10 | 4,197 | 16 | 9,599 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 465 | 465 | ||||
Other comprehensive earnings (loss), net of taxes | 20 | 20 | ||||
Stock-based compensation | 9 | 9 | ||||
Liberty Broadband stock repurchases | (1,047) | (1,047) | ||||
Noncontrolling interest activity at Charter and other | (18) | (18) | ||||
Balance at Jun. 30, 2022 | 1 | 4,319 | 30 | 4,662 | 16 | 9,028 |
Balance at Dec. 31, 2022 | 1 | 3,318 | 9 | 5,155 | 18 | 8,501 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 321 | 321 | ||||
Other comprehensive earnings (loss), net of taxes | 47 | 47 | ||||
Stock-based compensation | 16 | 16 | ||||
Liberty Broadband stock repurchases | (40) | (40) | ||||
Noncontrolling interest activity at Charter and other | (8) | 2 | (6) | |||
Balance at Jun. 30, 2023 | 1 | 3,286 | 56 | 5,476 | 20 | 8,839 |
Balance at Mar. 31, 2023 | 1 | 3,282 | 59 | 5,224 | 18 | 8,584 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 252 | 252 | ||||
Other comprehensive earnings (loss), net of taxes | (3) | (3) | ||||
Stock-based compensation | 8 | 8 | ||||
Noncontrolling interest activity at Charter and other | (4) | 2 | (2) | |||
Balance at Jun. 30, 2023 | $ 1 | $ 3,286 | $ 56 | $ 5,476 | $ 20 | $ 8,839 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation | |
Basis of Presentation | (1) Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Liberty Broadband Corporation and its controlled subsidiaries (collectively, "Liberty Broadband," the "Company," “us,” “we,” or “our” unless the context otherwise requires). Liberty Broadband Corporation is primarily comprised of GCI Holdings, LLC (“GCI Holdings” or “GCI”), a wholly owned subsidiary, and an equity method investment in Charter Communications, Inc. (“Charter”). On December 18, 2020, GCI Liberty, Inc. (“GCI Liberty”) was merged with Liberty Broadband (the “Combination”) and Liberty Broadband acquired GCI Holdings. The accompanying (a) condensed consolidated balance sheet as of December 31, 2022, 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, 2022. 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 its affiliate, (ii) non-recurring fair value measurements of non-financial instruments and (iii) accounting for income taxes to be its most significant estimates . Through a number of prior years’ transactions, including the Combination, Liberty Broadband has acquired an interest in Charter. The investment in Charter 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. Skyhook Holdings, Inc. (“Skyhook”) was a wholly owned subsidiary of Liberty Broadband until its sale on May 2, 2022 for aggregate consideration of approximately $194 million, including amounts held in escrow of approximately $23 million that were released to Liberty Broadband on May 3, 2023. Liberty Broadband recognized a gain on the sale of $179 million, net of closing fees, in the second quarter of 2022, which is recorded in Gain (loss) on dispositions, net in the accompanying condensed consolidated statement of operations. Skyhook is included in Corporate and other through April 30, 2022 and is not presented as a discontinued operation as the sale did not represent a strategic shift that had a major effect on Liberty Broadband’s operations and financial results. Included in Revenue in the accompanying condensed consolidated statements of operations is $1 million and $6 million for the three and six months ended June 30, 2022, respectively, related to Skyhook. Included in Net earnings (loss) in the accompanying condensed consolidated statement of operations are earnings of $1 million and $4 million for the three and six months ended June 30, 2022, respectively, related to Skyhook. As described in note 4, we are participating in Charter’s share buyback program in order to maintain our fully diluted ownership percentage of 26% . The primary use of those proceeds has been to repurchase Liberty Broadband Series A and Series C common stock pursuant to our authorized share repurchase programs. In addition, some of the proceeds were used for debt repayments. During the six months ended June 30, 2023, we repurchased an aggregate of 459 thousand shares of Liberty Broadband Series A and Series C common stock for a total purchase price of $40 million. During the six months ended June 30, 2022, we repurchased an aggregate of 14.4 million shares of Liberty Broadband Series A and Series C common stock for a total purchase price of $1,890 million. As of June 30, 2023, the amount remaining under the authorized repurchase program is approximately $1,962 million. Exchange Agreement with Chairman On June 13, 2022, Liberty Broadband entered into an Exchange Agreement with its Chairman of the board of directors, John C. Malone, and a revocable trust of which Mr. Malone is the sole trustee and beneficiary (the “JM Trust”) (the “Exchange Agreement”). Under the Exchange Agreement, the JM trust exchanged 215,647 shares of Liberty Broadband Series B common stock for the same number of Liberty Broadband Series C common stock on June 13, 2022, and exchanged 211,255 shares of Liberty Broadband Series B common stock for the same number of Liberty Broadband Series C common stock on July 19, 2022. Additionally, the JM Trust exchanged 54,247 shares of Liberty Broadband Series B common stock for the same number of Liberty Broadband Series C common stock on January 23, 2023. Spin-Off Arrangements 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, and to distribute subscription rights to acquire shares of Liberty Broadband’s common stock (the “Broadband Spin-Off”). 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 and to provide for an orderly transition, including a services agreement and a facilities sharing agreement. Under the facilities sharing agreement, Liberty Broadband shares office space with Liberty and related amenities at Liberty’s corporate headquarters. Liberty Broadband reimburses Liberty for direct, out-of-pocket expenses incurred by Liberty in providing these services which are negotiated semi-annually. Pursuant to the services agreement, Liberty provides Liberty Broadband with general and administrative services including legal, tax, accounting, treasury and investor relations support. 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 would either be paid directly to him by each of the Company, Liberty TripAdvisor Holdings, Inc. and Qurate Retail, Inc. (“Qurate Retail”) (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 23% for the Company but subject to adjustment on an annual basis upon the occurrence of certain events. Additionally, in connection with a prior transaction, GCI Liberty and Qurate Retail (for accounting purposes a related party of the Company) entered into a tax sharing agreement, which was assumed by Liberty Broadband as a result of the Combination. The tax sharing agreement provides for the allocation and indemnification of tax liabilities and benefits between Qurate Retail and Liberty Broadband and other agreements related to tax matters. Under these various agreements, amounts reimbursable to Liberty were approximately $1 million and $2 million for the three months ended June 30, 2023 and 2022, respectively, and $3 million and $5 million for the six months ended June 30, 2023 and 2022, respectively. Liberty Broadband had a tax sharing receivable with Qurate Retail of $14 million and $7 million as of June 30, 2023 and December 31, 2022, respectively, of which zero and $1 million were in Other current assets as of June 30, 2023 and December 31, 2022, respectively, with the remaining receivable in Other assets, net. |
Earnings Attributable to Libert
Earnings Attributable to Liberty Broadband Stockholders Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Attributable to Liberty Broadband Stockholders Per Common Share | |
Earnings Attributable to Liberty Broadband Stockholders Per Common Share | (2) Earnings Attributable to Liberty Broadband Stockholders Per Common 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. Excluded from diluted EPS for both the three months ended June 30, 2023 and 2022 are 2 million potential common shares, because their inclusion would have been antidilutive. Excluded from diluted EPS for the six months ended June 30, 2023 and 2022 are 2 million and 1 million potential common shares, respectively, because their inclusion would have been antidilutive. Liberty Broadband Common Stock Three months Three months Six months Six months ended ended ended ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (numbers of shares in millions) Basic WASO 146 161 146 164 Potentially dilutive shares (1) 1 1 1 1 Diluted WASO 147 162 147 165 (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 | 6 Months Ended |
Jun. 30, 2023 | |
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: June 30, 2023 December 31, 2022 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 millions Cash equivalents $ 20 20 — 288 288 — Indemnification obligation $ 10 — 10 50 — 50 Exchangeable senior debentures $ 1,235 — 1,235 1,373 — 1,373 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, equity securities, current portion of debt (with the exception of the 1.25% Debentures, and the 2.75% Debentures and 1.75% Debentures prior to their redemption in the first quarter of 2023 (defined in note 6)) and long-term debt (with the exception of the 3.125% Debentures (as defined in note 6)). 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 the Margin Loan Facility, the Senior Credit Facility and the Wells Fargo Note Payable (each as defined in note 6) all bear interest at a variable rate and therefore are also considered to approximate fair value. Realized and Unrealized Gains (Losses) on Financial Instruments Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions Indemnification obligation $ 18 64 15 149 Exchangeable senior debentures (1) 22 13 (89) 65 $ 40 77 (74) 214 (1) The Company has elected to account for its exchangeable senior debentures using the fair value option. Changes in the fair value of the exchangeable senior debentures recognized in the condensed consolidated statements of operations are primarily due to market factors driven by changes in the fair value of the underlying shares into which the debt is exchangeable. The Company isolates the portion of the unrealized gain (loss) attributable to the change in the instrument specific credit risk and recognizes such amount in other comprehensive income. The change in the fair value of the exchangeable senior debentures attributable to changes in the instrument specific credit risk before tax was a loss of $3 million and a gain of $26 million for the three months ended June 30, 2023 and 2022, respectively, and a gain of $61 million and $20 million for the six months ended June 30, 2023 and 2022, respectively . The cumulative change was a gain of $61 million as of June 30, 2023. |
Investment in Charter Accounted
Investment in Charter Accounted for Using the Equity Method | 6 Months Ended |
Jun. 30, 2023 | |
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 and the Combination, 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 June 30, 2023, the carrying and market value of Liberty Broadband’s ownership in Charter was approximately $11.9 billion and $17.3 billion, respectively. We own an approximate 31.5% economic ownership interest in Charter, based on shares of Charter’s Class A common stock issued and outstanding as of June 30, 2023. Upon the closing of the Time Warner Cable merger, the Second Amended and Restated Stockholders Agreement, dated as of May 23, 2015, by and among Charter, Liberty Broadband and Advance/Newhouse Partnership, as amended (the “Stockholders Agreement”), became fully effective. Pursuant to the Stockholders Agreement, Liberty Broadband’s equity ownership in Charter (on a fully diluted basis) is capped at the greater of 26% or the voting cap (“Equity Cap”). As of June 30, 2023, due to Liberty Broadband’s voting interest exceeding the current voting cap of 25.01%, our voting control of the aggregate voting power of Charter is 25.01%. Under the Stockholders Agreement, Liberty Broadband has agreed to vote (subject to certain exceptions) all voting securities beneficially owned by it, or over which it has voting discretion or control that are in excess of the voting cap, in the same proportion as all other votes cast by public stockholders of Charter with respect to the applicable matter. In February 2021, Liberty Broadband was notified that its ownership interest, on a fully diluted basis, had exceeded the Equity Cap set forth in the Stockholders Agreement. On February 23, 2021, Charter and Liberty Broadband entered into a letter agreement . Pursuant to this letter agreement, following any month during which Charter purchases, redeems or buys back shares of its Class A common stock, and prior to certain meetings of Charter’s stockholders, Liberty Broadband will be obligated to sell to Charter, and Charter will be obligated to purchase, such number of shares of Class A common stock as is necessary (if any) to reduce Liberty Broadband’s percentage equity interest, on a fully diluted basis, to the Equity Cap (such transaction, a “Charter Repurchase”). The per share sale price for each share of Charter will be equal to the volume weighted average price paid by Charter in its repurchases, redemptions and buybacks of its common stock (subject to certain exceptions) during the month prior to the Charter Repurchase (or, if applicable, during the relevant period prior to the relevant meeting of Charter stockholders). Under the terms of the letter agreement, Liberty Broadband sold 120,149 and shares of Charter Class A common stock to Charter for $42 million and $1,806 million during the six months ended June 30, 2023 and 2022, respectively, to maintain our fully diluted ownership percentage at 26% . Investment in Charter The excess basis in our investment in Charter is allocated within memo accounts used for equity method accounting purposes as follows (amounts in millions): June 30, December 31, 2023 2022 Property and equipment $ 468 524 Customer relationships 2,135 2,230 Franchise fees 3,843 3,809 Trademarks 29 29 Goodwill 4,024 3,975 Debt (382) (450) Deferred income tax liability (1,493) (1,505) $ 8,624 8,612 Property and equipment and customer relationships have weighted average remaining useful lives of approximately 4 years and 8 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 slight increase in excess basis for the six months ended June 30, 2023 was primarily a result of Charter’s share buyback program. The Company had dilution losses of $5 and $11 million during the three months ended June 30, 2023 and 2022, respectively, and dilution losses of $32 million and $67 million during the six months ended June 30, 2023 and 2022, respectively. The dilution losses for the periods presented were primarily attributable to the exercise of stock options and restricted stock units by employees and other third parties, slightly offset by a gain on dilution related to Charter’s repurchase of Liberty Broadband’s Charter shares during both the six months ended June 30, 2023 and 2022. Summarized unaudited financial information for Charter is as follows: Charter condensed consolidated balance sheets June 30, 2023 December 31, 2022 amounts in millions Current assets $ 3,929 4,017 Property and equipment, net 37,546 36,039 Goodwill 29,672 29,563 Intangible assets, net 69,618 70,135 Other assets 4,850 4,769 Total assets $ 145,615 144,523 Current liabilities $ 11,975 12,065 Deferred income taxes 18,982 19,058 Long-term debt 95,971 96,093 Other liabilities 4,660 4,758 Equity 14,027 12,549 Total liabilities and shareholders’ equity $ 145,615 144,523 Charter condensed consolidated statements of operations Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions Revenue $ 13,659 13,598 27,312 26,798 Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) 8,305 8,193 16,816 16,327 Depreciation and amortization 2,172 2,240 4,378 4,534 Other operating (income) expenses, net (58) (62) (48) (61) 10,419 10,371 21,146 20,800 Operating income 3,240 3,227 6,166 5,998 Interest expense, net (1,298) (1,109) (2,563) (2,169) Other income (expense), net (85) 79 (189) 102 Income tax (expense) benefit (444) (489) (818) (834) Net income (loss) 1,413 1,708 2,596 3,097 Less: Net income attributable to noncontrolling interests (190) (237) (352) (423) Net income (loss) attributable to Charter shareholders $ 1,223 1,471 2,244 2,674 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets | |
Intangible Assets | (5 Intangible Assets Intangible Assets Subject to Amortization, net June 30, 2023 December 31, 2022 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in millions Customer relationships $ 515 (111) 404 515 (91) 424 Other amortizable intangible assets 155 (67) 88 147 (55) 92 Total $ 670 (178) 492 662 (146) 516 Remainder of 2023 $ 32 2024 $ 57 2025 $ 52 2026 $ 50 2027 $ 48 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt | |
Debt | (6) Debt Outstanding principal Carrying value June 30, June 30, December 31, 2023 2023 2022 amounts in millions Margin Loan Facility $ 1,475 1,475 1,400 3.125% Exchangeable Senior Debentures due 2053 1,265 1,233 — 1.25% Exchangeable Senior Debentures due 2050 2 2 798 2.75% Exchangeable Senior Debentures due 2050 — — 560 1.75% Exchangeable Senior Debentures due 2046 — — 15 Senior notes 600 625 628 Senior credit facility 396 396 397 Wells Fargo note payable 5 5 5 Deferred financing costs (2) (2) Total debt $ 3,743 3,734 3,801 Debt classified as current (5) (1,376) Total long-term debt $ 3,729 2,425 Margin Loan Facility On May 17, 2023, a bankruptcy remote wholly owned subsidiary of the Company (“ ”) entered into Amendment No. 7 to Margin Loan Agreement (the “ ”), which amends SPV’s margin loan agreement, dated as of August 31, 2017 (as amended by the Seventh Amendment, the “ ”), with a group of lenders. The Margin Loan Agreement provides for (x) a term loan credit facility in an aggregate principal amount of $1.15 billion (the “ ” and proceeds of such facility, the “ ”), (y) a revolving credit facility in an aggregate principal amount of $1.15 billion (the “ ” and proceeds of such facility, the “ ”; the Revolving Loans, collectively with the Term Loans, the “ ”) and (z) an uncommitted incremental term loan facility in an aggregate principal amount of up to $200 million (collectively, the “Margin Loan Facility”). No additional borrowings under the Margin Loan Agreement were made in connection with the Seventh Amendment. SPV’s obligations under the Margin Loan Facility are secured by shares of Charter owned by SPV. The Seventh Amendment provided for, among other things, (i) the extension of the scheduled maturity dates to May 12, 2026, (ii) the interest under the Margin Loan Agreement to be determined by reference to SOFR instead of LIBOR, (iii) an increase in the Base Spread (as defined below) applicable to all loans funded under the Margin Loan Agreement and (iv) the removal of certain conditions precedent to the release of pledged shares. Outstanding borrowings under the Margin Loan Agreement were $1.5 billion and $1.4 billion as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, SPV was permitted to borrow an additional $825 million under the Margin Loan Agreement, subject to certain funding conditions, which may be drawn until five The Margin Loan Agreement contains various affirmative and negative covenants that restrict the activities of SPV (and, in some cases, the Company and its subsidiaries with respect to shares of Charter owned by the Company and its subsidiaries). The Margin Loan Agreement does not include any financial covenants. The Margin Loan Agreement does contain restrictions related to additional indebtedness and events of default customary for margin loans of this type. SPV’s obligations under the 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 Margin Loan Agreement. The Margin Loan Agreement indicates that no lender party shall have any voting rights with respect to the shares pledged as collateral, 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 agreement. Exchangeable Senior Debentures On February 28, 2023, the Company closed a private offering of $1,265 million aggregate original principal amount of its 3.125% Exchangeable Senior Debentures due 2053 (the “ 3.125% Debentures”), including debentures with an aggregate original principal amount of $165 million issued pursuant to the exercise of an option granted to the initial purchasers. Upon an exchange of the 3.125% Debentures, the Company, at its election, may deliver shares of Charter Class A common stock, the value thereof in cash, or any combination of shares of Charter Class A common stock and cash. Initially, 1.8901 shares of Charter Class A common stock are attributable to each $1,000 original principal amount of 3.125% Debentures, representing an initial exchange price of approximately $529.07 for each share of Charter Class A common stock. A total of 2,390,977 shares of Charter Class A common stock are attributable to the 3.125% Debentures. Interest is payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing June 30, 2023. The 3.125% Debentures may be redeemed by the Company, in whole or in part, on or after April 6, 2026. Holders of the 3.125% Debentures also have the right to require the Company to purchase their 3.125% Debentures on April 6, 2026. The redemption and purchase price will generally equal 100% of the adjusted principal amount of the 3.125% Debentures plus accrued and unpaid interest to the redemption date, plus any final period distribution. As of June 30, 2023, a holder of the 3.125% Debentures does not have the ability to exchange their debentures and, accordingly, the 3.125% Debentures have been classified as long-term debt within the condensed consolidated balance sheet as of June 30, 2023. The Company used the net proceeds of the offering, together with existing cash on hand, to repurchase all of the outstanding 1.75% exchangeable senior debentures due 2046 (the “ 1.75% Debentures”), all of the outstanding 2.75% Exchangeable Senior Debentures due 2050 (the “ 2.75% Debentures”) and a significant portion of the outstanding 1.25% Exchangeable Senior Debentures due 2050 (the “ 1.25% Debentures”). Upon exchange of the remaining portion of the 1.25% Debentures, pursuant to a supplemental indenture entered into in February 2023, the Company will deliver solely cash to satisfy its exchange obligations. The Company has elected to account for all of its exchangeable senior debentures at fair value in its condensed consolidated financial statements. Accordingly, changes in the fair value of these instruments are recognized in unrealized gains (losses) in the accompanying condensed consolidated statements of operations. See note 3 for information related to unrealized gains (losses) on debt measured at fair value. The Company reviews the terms of all the debentures on a quarterly basis to determine whether an event has occurred to require current classification on the condensed consolidated balance sheets. Senior Notes In connection with the closing of the Combination on December 18, 2020, GCI, LLC became an indirect wholly owned subsidiary of the Company. GCI, LLC is the issuer of $600 million aggregate principal amount of 4.75% senior notes due 2028 (the “Senior Notes”). The Senior Notes were issued by GCI, LLC on October 7, 2020 and are unsecured. Interest on the Senior Notes is payable semi-annually in arrears. The Senior Notes are redeemable at the Company’s option, in whole or in part, at a redemption price defined in the indenture, and accrued and unpaid interest (if any) to the date of redemption. The Senior Notes are stated net of an aggregate unamortized premium of $25 million at June 30, 2023. Such premium is being amortized to interest expense in the accompanying condensed consolidated statements of operations. Senior Credit Facility In connection with the closing of the Combination on December 18, 2020, GCI, LLC became an indirect wholly owned subsidiary of the Company. GCI, LLC is the borrower under the Senior Credit Facility (as defined below). On October 15, 2021, GCI, LLC entered into an Eighth Amended and Restated Credit Agreement which includes a $550 million revolving credit facility, with a $25 million sublimit for standby letters of credit, that matures on October 15, 2026 and a $250 million Term Loan A (the “Term Loan A”) that matures on October 15, 2027. On June 12, 2023, GCI, LLC entered into Amendment No. 1 to the Eighth Amended and Restated Credit Agreement (as amended, the “Senior Credit Facility”) which modified the interest rates to reference SOFR instead of LIBOR. Following the amendment, the revolving credit facility borrowings under the Senior Credit Facility that are alternate base rate loans bear interest at a per annum rate equal to the alternate base rate plus a margin that varies between 0.50% and 1.75% depending on GCI, LLC’s total leverage ratio. The revolving credit facility borrowings under the Senior Credit Facility that are SOFR loans bear interest at a per annum rate equal to the applicable SOFR plus a Credit Spread Adjustment plus a margin that varies between 1.50% and 2.75% depending on GCI, LLC’s total leverage ratio. Term Loan A borrowings that are alternate base rate loans bear interest at a per annum rate equal to the alternate base rate plus a margin that varies between 1.00% and 2.25% depending on GCI, LLC’s total leverage ratio. Term Loan A borrowings that are SOFR loans bear interest at a per annum rate equal to the applicable SOFR plus a margin that varies between 2.00% and 3.25% depending on GCI, LLC’s total leverage ratio. Principal payments are due quarterly on the Term Loan A equal to 0.25% of the original principal amount, which may step up to 1.25% of the original principal amount of the Term Loan A depending on GCI, LLC’s secured leverage ratio. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. Any amounts prepaid on the revolving credit facility may be reborrowed. Prior to the amendment, all rates indexed to SOFR were previously indexed to LIBOR. GCI, LLC’s First Lien Leverage Ratio (as defined in the Senior Credit Facility) may not exceed 4.00 to 1.00. The terms of the Senior Credit Facility include customary representations and warranties, customary affirmative and negative covenants and customary events of default. At any time after the occurrence of an event of default under the Senior Credit Facility, the lenders may, among other options, declare any amounts outstanding under the Senior Credit Facility immediately due and payable and terminate any commitment to make further loans under the Senior Credit Facility. The obligations under the Senior Credit Facility are secured by a security interest on substantially all of the assets of GCI, LLC and the subsidiary guarantors, as defined in the Senior Credit Facility, and on the stock of GCI Holdings. As of June 30, 2023, there was $246 million outstanding under the Term Loan A, $150 million outstanding under the revolving portion of the Senior Credit Facility and $3 million in letters of credit under the Senior Credit Facility, leaving $397 million available for borrowing. Wells Fargo Note Payable In connection with the closing of the Combination on December 18, 2020, the Company assumed GCI Holdings’ outstanding $6 million under its Wells Fargo Note Payable (as defined below). Outstanding borrowings on the Wells Fargo Note Payable were $5 million as of both June 30, 2023 and December 31, 2022. GCI Holdings issued a note to Wells Fargo that matures on July 15, 2029 and is payable in monthly installments of principal and interest (the "Wells Fargo Note Payable"). On May 1, 2023, the Wells Fargo Note Payable was amended to update the interest rate to reference SOFR instead of LIBOR. After this amendment, the interest rate is variable at SOFR plus 1.75%. Prior to the amendment, the interest rate was variable at one month LIBOR plus 2.25%. The note is subject to similar affirmative and negative covenants as the Senior Credit Facility. The obligations under the note are secured by a security interest and lien on the building purchased with the note. Debt Covenants GCI, LLC is subject to covenants and restrictions under its Senior Notes and Senior Credit Facility. The Company and GCI, LLC are in compliance with all debt maintenance covenants as of June 30, 2023. Fair Value of Debt The fair value of the Senior Notes was $515 million at June 30, 2023 (Level 2). Due to the variable rate nature of the Margin Loan, Senior Credit Facility and Wells Fargo Note Payable, the Company believes that the carrying amount approximates fair value at June 30, 2023. |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2023 | |
Preferred Stock. | |
Preferred Stock | (7) Preferred Stock Liberty Broadband's preferred stock is issuable, from time to time, with such designations, preferences and relative participating, optional or other rights, qualifications, limitations or restrictions thereof, as shall be stated and expressed in a resolution or resolutions providing for the issue of such preferred stock adopted by Liberty Broadband’s board of directors. Liberty Broadband Series A Cumulative Redeemable Preferred Stock (“Liberty Broadband Preferred Stock”) was issued as a result of the Combination on December 18, 2020. Each share of Series A Cumulative Redeemable Preferred Stock of GCI Liberty outstanding immediately prior to the closing of the Combination was converted into one share of newly issued Liberty Broadband Preferred Stock. The Company is required to redeem all outstanding shares of Liberty Broadband Preferred Stock out of funds legally available, at the liquidation price plus all unpaid dividends (whether or not declared) accrued from the most recent dividend payment date through the redemption date, on the first business day following March 8, 2039. There were 7,300,000 shares of Liberty Broadband Preferred Stock authorized and 7,183,812 shares issued and outstanding one-third The liquidation price is measured per share and shall mean the sum of (i) $25, plus (ii) an amount equal to all unpaid dividends (whether or not declared) accrued with respect to such share have been added to and then remain part of the liquidation price as of such date. The fair value of Liberty Broadband Preferred Stock of $203 million was recorded at the time of the Combination. The fair value of Liberty Broadband Preferred Stock as of June 30, 2023 was $166 million (Level 1). The holders of shares of Liberty Broadband Preferred Stock are entitled to receive, when and as declared by the Liberty Broadband board of directors, out of legally available funds, preferential dividends that accrue and cumulate as provided in the certificate of designations for the Liberty Broadband Preferred Stock. Dividends on each share of Liberty Broadband Preferred Stock accrue on a daily basis at a rate of 7.00% per annum of the liquidation price. Accrued dividends are payable quarterly on each dividend payment date, which is January 15, April 15, July 15, and October 15 of each year, commencing January 15, 2021. If Liberty Broadband fails to pay cash dividends on the Liberty Broadband Preferred Stock in full for any four consecutive or non-consecutive dividend periods then the dividend rate shall increase by 2.00% per annum of the liquidation price until cured. On May 25, 2023, the Company announced that its board of directors had declared a quarterly cash dividend of approximately $0.44 per share of Liberty Broadband Preferred Stock which was paid on July 17, 2023 to shareholders of record of the Liberty Broadband Preferred Stock at the close of business on June 30, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
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 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 re-measures the fair value of the Award at each reporting date. Included in Selling, general and administrative expenses in the accompanying condensed consolidated statements of operations are $8 million and $9 million of stock-based compensation during the three months ended June 30, 2023 and 2022, respectively, and $16 million and $18 million of stock-based compensation during the six months ended June 30, 2023 and 2022, respectively. Liberty Broadband – Grants During the six months ended June 30, 2023, Liberty Broadband granted 129 thousand options to purchase shares of Liberty Broadband Series C common stock to our CEO in connection with his employment agreement. Such options had a GDFV of $27.83 per share and vest on December 29, 2023. There were no options to purchase shares of Liberty Broadband Series A or Series B The Company has calculated the GDFV for all of its equity classified options and any subsequent re-measurement of its liability classified options using the Black-Scholes Model. The Company estimates the expected term of the options based on historical exercise and forfeiture data. The volatility used in the calculation for options 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 table presents the number and weighted average exercise price (“WAEP”) of options 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 options. Weighted average remaining Aggregate contractual intrinsic Series C WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2023 3,602 $ 98.62 Granted 136 $ 79.97 Exercised (40) $ 67.36 Forfeited/Cancelled (31) $ 96.54 Outstanding at June 30, 2023 3,667 $ 98.28 3.1 $ 48 Exercisable at June 30, 2023 2,369 $ 77.59 2.4 $ 48 As of June 30, 2023, there were no outstanding options to purchase shares of Liberty Broadband Series A common stock. During the six months ended June 30, 2023, Liberty Broadband had 69 thousand Liberty Broadband Series B options with a WAEP of $97.21 that were forfeited. As of June 30, 2023, 246 thousand Liberty Broadband Series B options remained outstanding and exercisable at a WAEP of $95.98 and a weighted average remaining contractual life of 1.2 years. As of June 30, 2023, the total unrecognized compensation cost related to unvested Awards was approximately $32 million. Such amount will be recognized in the Company's condensed consolidated statements of operations over a weighted average period of approximately 1.6 years. As of June 30, 2023, Liberty Broadband reserved 3.9 million shares of Liberty Broadband Series B and Series C common stock for issuance under exercise privileges of outstanding stock options. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | (9) Commitments and Contingencies General Litigation The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible 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. Charter and Liberty Broadband - Delaware Litigation On January 12, 2023, the parties reached a tentative agreement to settle the lawsuit between Matthew Sciabacucchi, a purported stockholder of Charter, and Liberty Broadband and the board of directors of Charter. This litigation was described in detail in Liberty Broadband’s Annual Report on Form 10-K for the year ended December 31, 2022. The court approved the settlement at a fairness hearing on June 22, 2023 and Liberty Broadband paid approximately $38 million to Charter as a result of the settlement, which had been accrued as a current liability in the condensed consolidated balance sheet and recorded as a litigation settlement expense within operating income in the fourth quarter of 2022. Rural Health Care (“RHC”) Program. As described in detail in Liberty Broadband’s Annual Report on Form 10-K for the year ended December 31, 2022, GCI Holdings has had ongoing inquiries from the Federal Communications Commission (the "FCC") and the Department of Justice (the “DOJ”) regarding various aspects of GCI Holdings’ participation in the RHC Program, which is one of several Universal Service Fund programs. Based on these inquiries and various interactions with the FCC and the DOJ, GCI Holdings had previously recorded estimated settlement liabilities totaling $41 million. On May 10, 2023, GCI Holdings entered into a final settlement agreement with both the FCC and the DOJ, which resulted in a total cash payment of $41 million of which $27 million was paid to the FCC and $14 million was paid to the DOJ during the second quarter of 2023. Additionally, as part of the settlement with the FCC and the DOJ, GCI Holdings withdrew all of its open Applications for Review related to FCC rate reduction matters. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Information | |
Segment Information | (10) 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 (as defined below) 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 the six months ended June 30, 2023, Liberty Broadband has identified the following consolidated company and equity method investment as its reportable segments: ● GCI Holdings – a wholly owned subsidiary of the Company that provides a full range of data, wireless, video, voice, and managed services to residential, businesses, governmental entities, and educational and medical institutions primarily in Alaska. ● 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 segment that is also a consolidated company 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, 2022. 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 tables below and subsequently eliminated in order to reconcile the account totals to the Liberty Broadband condensed consolidated financial statements. Performance Measures Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions GCI Holdings Consumer Revenue Data $ 59 57 118 115 Wireless 35 34 70 68 Other 10 14 22 28 Business Revenue Data 106 96 211 185 Wireless 11 11 22 24 Other 5 6 10 12 Lease, grant, and revenue from subsidies 19 20 38 39 Total GCI Holdings 245 238 491 471 Corporate and other — 1 — 6 Total $ 245 239 491 477 The Company expects to recognize revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) of approximately $195 million in the remainder of 2023 2024 2025 2026 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, transaction costs, 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. Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions GCI Holdings $ 92 90 182 177 Charter 5,580 5,571 10,920 10,783 Corporate and other (5) (7) (13) (14) 5,667 5,654 11,089 10,946 Eliminate equity method affiliate (5,580) (5,571) (10,920) (10,783) Consolidated Liberty Broadband $ 87 83 169 163 Other Information June 30, 2023 Total Investments Capital assets in affiliate expenditures amounts in millions GCI Holdings $ 3,344 — 97 Charter 145,615 — 5,298 Corporate and other 12,065 11,916 — 161,024 11,916 5,395 Eliminate equity method affiliate (145,615) — (5,298) Consolidated Liberty Broadband $ 15,409 11,916 97 Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions Adjusted OIBDA $ 87 83 169 163 Stock-based compensation (8) (9) (16) (18) Depreciation and amortization (56) (65) (114) (129) Litigation settlement — (10) — (10) Operating income (loss) 23 (1) 39 6 Interest expense (52) (30) (97) (56) Share of earnings (loss) of affiliate, net 318 386 566 689 Gain (loss) on dilution of investment in affiliate (5) (11) (32) (67) Realized and unrealized gains (losses) on financial instruments, net 40 77 (74) 214 Gain (loss) on dispositions, net — 179 — 179 Other, net 2 (18) 16 (39) Earnings (loss) before income taxes $ 326 582 418 926 |
Earnings Attributable to Libe_2
Earnings Attributable to Liberty Broadband Stockholders Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Attributable to Liberty Broadband Stockholders Per Common Share | |
Schedule of weighted average number of shares | Liberty Broadband Common Stock Three months Three months Six months Six months ended ended ended ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (numbers of shares in millions) Basic WASO 146 161 146 164 Potentially dilutive shares (1) 1 1 1 1 Diluted WASO 147 162 147 165 (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) | 6 Months Ended |
Jun. 30, 2023 | |
Assets and Liabilities Measured at Fair Value | |
Schedule of assets and liabilities measured at fair value | June 30, 2023 December 31, 2022 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 millions Cash equivalents $ 20 20 — 288 288 — Indemnification obligation $ 10 — 10 50 — 50 Exchangeable senior debentures $ 1,235 — 1,235 1,373 — 1,373 |
Schedule of realized and unrealized gains (losses) on financial instruments | Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions Indemnification obligation $ 18 64 15 149 Exchangeable senior debentures (1) 22 13 (89) 65 $ 40 77 (74) 214 (1) The Company has elected to account for its exchangeable senior debentures using the fair value option. Changes in the fair value of the exchangeable senior debentures recognized in the condensed consolidated statements of operations are primarily due to market factors driven by changes in the fair value of the underlying shares into which the debt is exchangeable. The Company isolates the portion of the unrealized gain (loss) attributable to the change in the instrument specific credit risk and recognizes such amount in other comprehensive income. The change in the fair value of the exchangeable senior debentures attributable to changes in the instrument specific credit risk before tax was a loss of $3 million and a gain of $26 million for the three months ended June 30, 2023 and 2022, respectively, and a gain of $61 million and $20 million for the six months ended June 30, 2023 and 2022, respectively . The cumulative change was a gain of $61 million as of June 30, 2023. |
Investment in Charter Account_2
Investment in Charter Accounted for Using the Equity Method (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 is allocated within memo accounts used for equity method accounting purposes as follows (amounts in millions): June 30, December 31, 2023 2022 Property and equipment $ 468 524 Customer relationships 2,135 2,230 Franchise fees 3,843 3,809 Trademarks 29 29 Goodwill 4,024 3,975 Debt (382) (450) Deferred income tax liability (1,493) (1,505) $ 8,624 8,612 |
Summary of financial information for Charter | Charter condensed consolidated balance sheets June 30, 2023 December 31, 2022 amounts in millions Current assets $ 3,929 4,017 Property and equipment, net 37,546 36,039 Goodwill 29,672 29,563 Intangible assets, net 69,618 70,135 Other assets 4,850 4,769 Total assets $ 145,615 144,523 Current liabilities $ 11,975 12,065 Deferred income taxes 18,982 19,058 Long-term debt 95,971 96,093 Other liabilities 4,660 4,758 Equity 14,027 12,549 Total liabilities and shareholders’ equity $ 145,615 144,523 Charter condensed consolidated statements of operations Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions Revenue $ 13,659 13,598 27,312 26,798 Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) 8,305 8,193 16,816 16,327 Depreciation and amortization 2,172 2,240 4,378 4,534 Other operating (income) expenses, net (58) (62) (48) (61) 10,419 10,371 21,146 20,800 Operating income 3,240 3,227 6,166 5,998 Interest expense, net (1,298) (1,109) (2,563) (2,169) Other income (expense), net (85) 79 (189) 102 Income tax (expense) benefit (444) (489) (818) (834) Net income (loss) 1,413 1,708 2,596 3,097 Less: Net income attributable to noncontrolling interests (190) (237) (352) (423) Net income (loss) attributable to Charter shareholders $ 1,223 1,471 2,244 2,674 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets | |
Schedule of Intangible Assets Subject to Amortization, net | June 30, 2023 December 31, 2022 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in millions Customer relationships $ 515 (111) 404 515 (91) 424 Other amortizable intangible assets 155 (67) 88 147 (55) 92 Total $ 670 (178) 492 662 (146) 516 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in millions): Remainder of 2023 $ 32 2024 $ 57 2025 $ 52 2026 $ 50 2027 $ 48 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt | |
Schedule of debt | Outstanding principal Carrying value June 30, June 30, December 31, 2023 2023 2022 amounts in millions Margin Loan Facility $ 1,475 1,475 1,400 3.125% Exchangeable Senior Debentures due 2053 1,265 1,233 — 1.25% Exchangeable Senior Debentures due 2050 2 2 798 2.75% Exchangeable Senior Debentures due 2050 — — 560 1.75% Exchangeable Senior Debentures due 2046 — — 15 Senior notes 600 625 628 Senior credit facility 396 396 397 Wells Fargo note payable 5 5 5 Deferred financing costs (2) (2) Total debt $ 3,743 3,734 3,801 Debt classified as current (5) (1,376) Total long-term debt $ 3,729 2,425 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 3,602 $ 98.62 Granted 136 $ 79.97 Exercised (40) $ 67.36 Forfeited/Cancelled (31) $ 96.54 Outstanding at June 30, 2023 3,667 $ 98.28 3.1 $ 48 Exercisable at June 30, 2023 2,369 $ 77.59 2.4 $ 48 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Information | |
Schedule of performance measures | Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions GCI Holdings Consumer Revenue Data $ 59 57 118 115 Wireless 35 34 70 68 Other 10 14 22 28 Business Revenue Data 106 96 211 185 Wireless 11 11 22 24 Other 5 6 10 12 Lease, grant, and revenue from subsidies 19 20 38 39 Total GCI Holdings 245 238 491 471 Corporate and other — 1 — 6 Total $ 245 239 491 477 |
Schedule of OIBDA By Segment | Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions GCI Holdings $ 92 90 182 177 Charter 5,580 5,571 10,920 10,783 Corporate and other (5) (7) (13) (14) 5,667 5,654 11,089 10,946 Eliminate equity method affiliate (5,580) (5,571) (10,920) (10,783) Consolidated Liberty Broadband $ 87 83 169 163 |
Schedule of Other Information By Segment | June 30, 2023 Total Investments Capital assets in affiliate expenditures amounts in millions GCI Holdings $ 3,344 — 97 Charter 145,615 — 5,298 Corporate and other 12,065 11,916 — 161,024 11,916 5,395 Eliminate equity method affiliate (145,615) — (5,298) Consolidated Liberty Broadband $ 15,409 11,916 97 |
Schedule of reconciliation of segment Adjusted OIBDA to earnings (loss) before income taxes | Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 amounts in millions Adjusted OIBDA $ 87 83 169 163 Stock-based compensation (8) (9) (16) (18) Depreciation and amortization (56) (65) (114) (129) Litigation settlement — (10) — (10) Operating income (loss) 23 (1) 39 6 Interest expense (52) (30) (97) (56) Share of earnings (loss) of affiliate, net 318 386 566 689 Gain (loss) on dilution of investment in affiliate (5) (11) (32) (67) Realized and unrealized gains (losses) on financial instruments, net 40 77 (74) 214 Gain (loss) on dispositions, net — 179 — 179 Other, net 2 (18) 16 (39) Earnings (loss) before income taxes $ 326 582 418 926 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
May 02, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cash released from escrow related to dispositions | $ 23 | |||||
Gain (loss) on dispositions, net (note 1) | $ 179 | $ 179 | ||||
Affiliated Entity | Liberty | ||||||
Reimbursable amount | $ 1 | 2 | 3 | 5 | ||
Affiliated Entity | Qurate Retail | ||||||
Tax sharing receivable | 14 | 14 | $ 7 | |||
Affiliated Entity | Qurate Retail | Other current assets | ||||||
Tax sharing receivable | $ 0 | $ 0 | $ 1 | |||
CEO | Affiliated Entity | Liberty | ||||||
CEO compensation allocation percentage | 23% | |||||
Charter. | ||||||
Fully Diluted Ownership Percentage | 26% | |||||
Skyhook | ||||||
Sales on proceeds | $ 194 | |||||
Skyhook | Disposal Group | ||||||
Cash released from escrow related to dispositions | 23 | |||||
Gain (loss) on dispositions, net (note 1) | $ 179 | |||||
Disposal group revenue | 1 | 6 | ||||
Disposal group net income (loss) | $ 1 | $ 4 |
Basis of Presentation - Exchang
Basis of Presentation - Exchange Agreement with Chairman (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Jan. 23, 2023 | Jul. 19, 2022 | Jun. 13, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Series B common stock | |||||
Shares converted | 54,247 | 211,255 | 215,647 | ||
Common Class A And C | |||||
Remaining authorized repurchase amount | $ 1,962 | ||||
Number of shares repurchased | 459,000 | 14,400,000 | |||
Value of stock repurchased | $ 40 | $ 1,890 |
Earnings Attributable to Libe_3
Earnings Attributable to Liberty Broadband Stockholders Per Common Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Attributable to Liberty Broadband Stockholders Per Common Share | ||||
Antidilutive shares | 2 | 2 | 2 | 1 |
Basic WASO | 146 | 161 | 146 | 164 |
Potentially dilutive shares | 1 | 1 | 1 | 1 |
Diluted WASO | 147 | 162 | 147 | 165 |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value - Schedule of Assets and Liabilities (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 20 | $ 288 |
Indemnification obligation | 10 | 50 |
Exchangeable senior debentures | 1,235 | 1,373 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 20 | 288 |
Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Indemnification obligation | 10 | 50 |
Exchangeable senior debentures | $ 1,235 | $ 1,373 |
Assets and Liabilities Measur_4
Assets and Liabilities Measured at Fair Value - Schedule of Realized and Unrealized Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Realized and unrealized gains (losses) on financial instruments, net (note 3) | $ 40 | $ 77 | $ (74) | $ 214 |
Indemnification Obligation | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Realized and unrealized gains (losses) on financial instruments, net (note 3) | 18 | 64 | 15 | 149 |
Exchangeable senior debentures | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Realized and unrealized gains (losses) on financial instruments, net (note 3) | $ 22 | $ 13 | $ (89) | $ 65 |
Assets and Liabilities Measur_5
Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 28, 2023 | Dec. 31, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Indemnification payment | $ 25 | |||||
1.75% Exchangeable Senior Debentures due 2046 | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Interest rate (as a percent) | 1.75% | 1.75% | 1.75% | |||
1.25% Exchangeable Senior Debentures due 2050 | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Interest rate (as a percent) | 1.25% | 1.25% | 1.25% | |||
2.75% Exchangeable Senior Debentures due 2050 | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Interest rate (as a percent) | 2.75% | 2.75% | 2.75% | |||
3.125% Exchangeable Senior Debentures due 2053 | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% | 3.125% | ||
Exchangeable senior debentures | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Change in fair value | $ (3) | $ 26 | $ 61 | $ 20 | ||
Cumulative change | $ 61 | |||||
Exchangeable senior debentures | 1.75% Exchangeable Senior Debentures due 2046 | Indemnification obligation | LI LLC | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Interest rate (as a percent) | 1.75% | 1.75% | ||||
Indemnification payment | $ 25 | |||||
Debt exchanged | $ 251 |
Investment in Charter Account_3
Investment in Charter Accounted for Using the Equity Method (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Investments in affiliates accounted for using the Equity Method | |||
Proceeds from sale of equity method investments | $ 42 | $ 1,806 | |
Charter. | |||
Investments in affiliates accounted for using the Equity Method | |||
Carrying value of equity method investment | 11,916 | $ 11,433 | |
Market value of equity method investment | $ 17,300 | ||
Ownership capped percentage | 25.01% | ||
Fully diluted ownership percentage | 26% | ||
Ownership percentage | 31.50% | ||
Voting interest cap | 25.01% | ||
Series A common stock | Charter. | |||
Investments in affiliates accounted for using the Equity Method | |||
Equity investment shares sold | 120,149 | 3,227,684 | |
Proceeds from sale of equity method investments | $ 42 | $ 1,806 |
Investment in Charter Account_4
Investment in Charter Accounted for Using the Equity Method - Excess Basis Allocation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Excess basis allocation within memo accounts | |||||
Loss on dilution of investment in affiliate | $ (5) | $ (11) | $ (32) | $ (67) | |
Charter. | |||||
Excess basis allocation within memo accounts | |||||
Property and equipment | 468 | 468 | $ 524 | ||
Customer relationships | 2,135 | 2,135 | 2,230 | ||
Franchise fees | 3,843 | 3,843 | 3,809 | ||
Trademarks | 29 | 29 | 29 | ||
Goodwill | 4,024 | 4,024 | 3,975 | ||
Debt | (382) | (382) | (450) | ||
Deferred income tax liability | (1,493) | (1,493) | (1,505) | ||
Total | 8,624 | 8,624 | $ 8,612 | ||
Amortization of Deferred Charges | 65 | 67 | 134 | 134 | |
Loss on dilution of investment in affiliate | $ (5) | $ (11) | $ (32) | $ (67) | |
Charter. | Customer relationships | |||||
Excess basis allocation within memo accounts | |||||
Remaining useful lives of customer relationships | 8 years | 8 years | |||
Charter. | Property, Plant and Equipment | |||||
Excess basis allocation within memo accounts | |||||
Remaining useful lives of property and equipment | 4 years | 4 years |
Investment in Charter Account_5
Investment in Charter Accounted for Using the Equity Method -Summarized Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Investments in affiliates accounted for using the Equity Method | |||||
Current assets | $ 393 | $ 393 | $ 660 | ||
Property and equipment, net | 1,013 | 1,013 | 1,011 | ||
Goodwill | 755 | 755 | 755 | ||
Other assets | 253 | 253 | 180 | ||
Total assets | 15,409 | 15,409 | 15,142 | ||
Current liabilities | 194 | 194 | 1,675 | ||
Deferred income taxes | 2,146 | 2,146 | 2,040 | ||
Long-term debt | 3,734 | 3,734 | 3,801 | ||
Other liabilities | 152 | 152 | 150 | ||
Equity | 8,819 | 8,819 | 8,483 | ||
Total liabilities and equity | 15,409 | 15,409 | 15,142 | ||
Operating costs and expenses (excluding depreciation and amortization) | 59 | $ 60 | 121 | $ 126 | |
Depreciation and amortization | 56 | 65 | 114 | 129 | |
Total operating costs and expenses | 222 | 240 | 452 | 471 | |
Operating income (loss) | 23 | (1) | 39 | 6 | |
Other income (expense), net | 2 | (18) | 16 | (39) | |
Income tax benefit (expense) | (74) | (117) | (97) | (162) | |
Net earnings (loss) | 252 | 465 | 321 | 764 | |
Net earnings (loss) attributable to Liberty Broadband shareholders | 252 | 465 | 321 | 764 | |
Charter. | |||||
Investments in affiliates accounted for using the Equity Method | |||||
Current assets | 3,929 | 3,929 | 4,017 | ||
Property and equipment, net | 37,546 | 37,546 | 36,039 | ||
Goodwill | 29,672 | 29,672 | 29,563 | ||
Intangible assets, net | 69,618 | 69,618 | 70,135 | ||
Other assets | 4,850 | 4,850 | 4,769 | ||
Total assets | 145,615 | 145,615 | 144,523 | ||
Current liabilities | 11,975 | 11,975 | 12,065 | ||
Deferred income taxes | 18,982 | 18,982 | 19,058 | ||
Long-term debt | 95,971 | 95,971 | 96,093 | ||
Other liabilities | 4,660 | 4,660 | 4,758 | ||
Equity | 14,027 | 14,027 | 12,549 | ||
Total liabilities and equity | 145,615 | 145,615 | $ 144,523 | ||
Revenue | 13,659 | 13,598 | 27,312 | 26,798 | |
Operating costs and expenses (excluding depreciation and amortization) | 8,305 | 8,193 | 16,816 | 16,327 | |
Depreciation and amortization | 2,172 | 2,240 | 4,378 | 4,534 | |
Other operating (income) expenses, net | (58) | (62) | (48) | (61) | |
Total operating costs and expenses | 10,419 | 10,371 | 21,146 | 20,800 | |
Operating income (loss) | 3,240 | 3,227 | 6,166 | 5,998 | |
Interest expense, net | (1,298) | (1,109) | (2,563) | (2,169) | |
Other income (expense), net | (85) | 79 | (189) | 102 | |
Income tax benefit (expense) | (444) | (489) | (818) | (834) | |
Net earnings (loss) | 1,413 | 1,708 | 2,596 | 3,097 | |
Less: Net income attributable to noncontrolling interests | (190) | (237) | (352) | (423) | |
Net earnings (loss) attributable to Liberty Broadband shareholders | $ 1,223 | $ 1,471 | $ 2,244 | $ 2,674 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets Subject to Amortization, net (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 670 | $ 662 |
Accumulated Amortization | (178) | (146) |
Net carrying amount | 492 | 516 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 515 | 515 |
Accumulated Amortization | (111) | (91) |
Net carrying amount | 404 | 424 |
Other amortizable intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 155 | 147 |
Accumulated Amortization | (67) | (55) |
Net carrying amount | $ 88 | $ 92 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Intangible Assets | ||||
Amortization expense | $ 16 | $ 16 | $ 32 | $ 33 |
Years ending December 31, | ||||
Remainder of 2023 | 32 | 32 | ||
2024 | 57 | 57 | ||
2025 | 52 | 52 | ||
2026 | 50 | 50 | ||
2027 | $ 48 | $ 48 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Feb. 28, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Outstanding principal | $ 3,743 | ||
Deferred financing costs | (2) | $ (2) | |
Total debt | 3,734 | 3,801 | |
Debt classified as current | (5) | (1,376) | |
Total long-term debt | 3,729 | $ 2,425 | |
3.125% Exchangeable Senior Debentures due 2053 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 1,265 | ||
Carrying value | $ 1,233 | ||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% |
2.75% Exchangeable Senior Debentures due 2050 | |||
Debt Instrument [Line Items] | |||
Carrying value | $ 560 | ||
Interest rate (as a percent) | 2.75% | 2.75% | |
1.25% Exchangeable Senior Debentures due 2050 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 2 | ||
Carrying value | $ 2 | $ 798 | |
Interest rate (as a percent) | 1.25% | 1.25% | |
1.75% Exchangeable Senior Debentures due 2046 | |||
Debt Instrument [Line Items] | |||
Carrying value | $ 15 | ||
Interest rate (as a percent) | 1.75% | 1.75% | |
Senior notes | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 600 | ||
Carrying value | 625 | $ 628 | |
Line of credit | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 396 | ||
Carrying value | 396 | 397 | |
Wells Fargo note payable | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 5 | ||
Carrying value | 5 | 5 | |
SPV | Margin Loan Facility | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 1,475 | ||
Carrying value | $ 1,475 | $ 1,400 |
Debt (Details)
Debt (Details) - USD ($) | 6 Months Ended | ||||
May 17, 2023 | Feb. 28, 2023 | Aug. 12, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | |
3.125% Exchangeable Senior Debentures due 2053 | |||||
Debt disclosures | |||||
Carrying value | $ 1,233,000,000 | ||||
Principal amount | $ 1,265,000,000 | ||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% | ||
Shares attributable to debentures per $1,000 original principal amount of Debentures | 1.8901 | ||||
Total shares attributable to debentures | 2,390,977 | ||||
Debt instrument, face amount per debenture | $ 1,000 | ||||
Exchange price of shares attributable to debentures | $ 529.07 | ||||
Percentage of redemption and purchase price | 100% | ||||
Exchangeable Senior Debentures Option | |||||
Debt disclosures | |||||
Principal amount | $ 165,000,000 | ||||
2.75% Exchangeable Senior Debentures due 2050 | |||||
Debt disclosures | |||||
Carrying value | $ 560,000,000 | ||||
Interest rate (as a percent) | 2.75% | 2.75% | |||
1.25% Exchangeable Senior Debentures due 2050 | |||||
Debt disclosures | |||||
Carrying value | $ 2,000,000 | $ 798,000,000 | |||
Interest rate (as a percent) | 1.25% | 1.25% | |||
1.75% Exchangeable Senior Debentures due 2046 | |||||
Debt disclosures | |||||
Carrying value | $ 15,000,000 | ||||
Interest rate (as a percent) | 1.75% | 1.75% | |||
Line of credit | |||||
Debt disclosures | |||||
Carrying value | $ 396,000,000 | $ 397,000,000 | |||
SPV | Margin Loan Facility | |||||
Debt disclosures | |||||
Carrying value | $ 1,475,000,000 | $ 1,400,000,000 | |||
Number of business days prior to the maturity date | 5 days | ||||
Remaining borrowing capacity | $ 825,000,000 | ||||
SPV | Margin Loan Facility | Charter. | Asset Pledged as Collateral | |||||
Debt disclosures | |||||
Shares owned | 37,300,000 | ||||
Value of pledged collateral | $ 13,700,000,000 | ||||
SPV | Margin Loan Facility | Three-month LIBOR | |||||
Debt disclosures | |||||
Interest rate basis | three-month LIBOR | ||||
Basis spread on variable rate | 1.50% | ||||
SPV | Margin Loan Facility | SOFR | |||||
Debt disclosures | |||||
Interest rate basis | three-month SOFR | ||||
Basis spread on variable rate | 1.875% | ||||
SPV | Term loan | |||||
Debt disclosures | |||||
Carrying value | $ 1,150,000,000 | ||||
SPV | Revolving Credit Facility | |||||
Debt disclosures | |||||
Maximum borrowing capacity | 1,150,000,000 | ||||
SPV | Uncommitted Incremental Term Loan Facility | |||||
Debt disclosures | |||||
Maximum borrowing capacity | $ 200,000,000 |
Debt - Senior Notes and Senior
Debt - Senior Notes and Senior Credit Facility (Details) - USD ($) $ in Millions | Jun. 12, 2023 | May 01, 2023 | Dec. 18, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | Oct. 15, 2021 |
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 3,743 | |||||
Fair value of debt | 1,233 | $ 0 | ||||
Revolving Credit Facility | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate basis | SOFR | |||||
Term Loan A | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 250 | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Fair value of debt | 515 | |||||
Senior Notes | GCI Liberty Inc | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 600 | |||||
Interest rate (as a percent) | 4.75% | |||||
Aggregate unamortized premium | 25 | |||||
Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 396 | |||||
Line of credit | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Amount available for borrowing | 397 | |||||
Line of credit | Revolving Credit Facility | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 150 | |||||
Line of credit | Revolving Credit Facility | Alternate base rate | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate basis | alternate base rate | |||||
Line of credit | Revolving Credit Facility | Alternate base rate | Minimum | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Line of credit | Revolving Credit Facility | Alternate base rate | Maximum | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Line of credit | Standby Letters of Credit | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 3 | |||||
Line of credit | Term Loan A | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 246 | |||||
Percentage of original principal amount | 0.25% | |||||
Change in percentage of original principal amount | 1.25% | |||||
Line of credit | Term Loan A | SOFR | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate basis | SOFR | |||||
Line of credit | Term Loan A | SOFR | Minimum | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2% | |||||
Line of credit | Term Loan A | SOFR | Maximum | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.25% | |||||
Line of credit | Term Loan A | Alternate base rate | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate basis | alternate base rate | |||||
Line of credit | Term Loan A | Alternate base rate | Minimum | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Line of credit | Term Loan A | Alternate base rate | Maximum | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
Senior Credit Facility | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
First lien leverage ratio | 4 | |||||
Revolving Credit Facility | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | 550 | |||||
Revolving Credit Facility | SOFR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Revolving Credit Facility | SOFR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.75% | |||||
Standby Letters of Credit | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 25 | |||||
Wells Fargo Notes Payable | GCI Liberty Inc | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 6 | $ 5 | $ 5 | |||
Wells Fargo Notes Payable | SOFR | GCI Liberty Inc | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate basis | SOFR | |||||
Basis spread on variable rate | 1.75% | |||||
Wells Fargo Notes Payable | LIBOR | GCI Liberty Inc | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate basis | LIBOR | |||||
Basis spread on variable rate | 2.25% |
Preferred Stock (Details)
Preferred Stock (Details) $ / shares in Units, $ in Millions | 6 Months Ended | ||
May 25, 2023 $ / shares | Dec. 18, 2020 USD ($) period $ / shares | Jun. 30, 2023 USD ($) Vote / shares shares | |
Preferred stock vote per share | Vote / shares | 0.33 | ||
Preferred stock, additional shares authorized | 42,700,000 | ||
Liquidation price per share | $ / shares | $ 25 | ||
Preferred stock fair value | $ | $ 203 | $ 166 | |
Dividend rate | 7% | ||
Failure to pay cash dividends, number of periods | period | 4 | ||
Potential increase in dividend rate, over four dividend periods | 2% | ||
Preferred stock, dividends declared per share | $ / shares | $ 0.44 | ||
Series A Cumulative Redeemable Preferred Stock. | |||
Preferred stock, shares authorized | 7,300,000 | ||
Preferred shares, shares issued | 7,183,812 | ||
Preferred shares, shares outstanding | 7,183,812 | ||
GCI Liberty Inc | |||
Preferred stock distribution ratio | 1 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-Based Compensation | ||||
Stock-based compensation | $ 8 | $ 9 | $ 16 | $ 18 |
Stock-Based Compensation - Ince
Stock-Based Compensation - Incentive Plans and Grants of Stock Awards (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Fair value assumptions | |
Dividend rate | 0% |
Employee Stock Option [Member] | Series A common stock | |
Stock Based Compensation | |
Options granted (in shares) | 0 |
Employee Stock Option [Member] | Series B common stock | |
Stock Based Compensation | |
Options granted (in shares) | 0 |
Employee Stock Option [Member] | Series C common stock | |
Stock Based Compensation | |
Options granted (in shares) | 136,000 |
Employee Stock Option [Member] | CEO | Series C common stock | |
Stock Based Compensation | |
Options granted (in shares) | 129,000 |
Options grant date fair value | $ / shares | $ 27.83 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding Awards and Exercises (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Awards | Common Class A, Class B And Class C | |
Compensation cost not yet recognized | |
Shares reserved for future issuance upon exercise of stock options | 3,900,000 |
Employee Stock Option [Member] | |
Compensation cost not yet recognized | |
Unrecognized compensation cost options | $ | $ 32 |
Period over which unrecognized compensation cost will be recognized | 1 year 7 months 6 days |
Employee Stock Option [Member] | Series A common stock | |
Options | |
Options granted (in shares) | 0 |
Outstanding ending balance (in shares) | 0 |
Employee Stock Option [Member] | Series B common stock | |
Options | |
Options granted (in shares) | 0 |
Forfeited/Cancelled (in shares) | (69,000) |
Outstanding ending balance (in shares) | 246,000 |
WAEP | |
WAEP options forfeited/cancelled (in dollars per share) | $ / shares | $ 97.21 |
WAEP Outstanding ending balance (in dollars per share) | $ / shares | $ 95.98 |
Options additional disclosures | |
Weighted average remaining contractual life outstanding | 1 year 2 months 12 days |
Employee Stock Option [Member] | Series C common stock | |
Options | |
Outstanding beginning balance (in shares) | 3,602,000 |
Options granted (in shares) | 136,000 |
Exercised (in shares) | (40,000) |
Forfeited/Cancelled (in shares) | (31,000) |
Outstanding ending balance (in shares) | 3,667,000 |
Number of awards exercisable (in shares) | 2,369,000 |
WAEP | |
WAEP Outstanding beginning balance (in dollars per share) | $ / shares | $ 98.62 |
WAEP Options granted (in dollars per share) | $ / shares | 79.97 |
WAEP options exercised (in dollars per share) | $ / shares | 67.36 |
WAEP options forfeited/cancelled (in dollars per share) | $ / shares | 96.54 |
WAEP Outstanding ending balance (in dollars per share) | $ / shares | 98.28 |
WAEP options exercisable (in dollars per share) | $ / shares | $ 77.59 |
Options additional disclosures | |
Weighted average remaining contractual life outstanding | 3 years 1 month 6 days |
Weighted average remaining contractual life exercisable | 2 years 4 months 24 days |
Aggregate intrinsic value outstanding | $ | $ 48 |
Aggregate intrinsic value exercisable | $ | $ 48 |
Employee Stock Option [Member] | CEO | Series C common stock | |
Options | |
Options granted (in shares) | 129,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | |
Other Commitments [Line Items] | ||||
Litigation settlement expense | $ 10 | $ 10 | ||
Charter And Liberty Broadband Delaware Litigation | ||||
Other Commitments [Line Items] | ||||
Payments for Legal Settlements | $ 38 | |||
GCI Holdings | Rural Health Care ("RHC") Program | ||||
Other Commitments [Line Items] | ||||
Estimated Litigation Liability | $ 41 | |||
GCI Holdings | Rural Health Care ("RHC") Program | ||||
Other Commitments [Line Items] | ||||
Payments for Legal Settlements | 41 | |||
GCI Holdings | Rural Health Care ("RHC") Program | DOJ | ||||
Other Commitments [Line Items] | ||||
Payments for Legal Settlements | 14 | |||
GCI Holdings | Rural Health Care ("RHC") Program | FCC | ||||
Other Commitments [Line Items] | ||||
Payments for Legal Settlements | $ 27 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Gross receivables | $ 188 | $ 188 | $ 189 | ||
Deferred revenue | 38 | 38 | $ 33 | ||
Revenue | 245 | $ 239 | 491 | $ 477 | |
Adjusted OIBDA | 87 | 83 | $ 169 | 163 | |
Charter | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Financial results included in the disclosure (as a percent) | 100% | ||||
Operating segments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total assets | 15,409 | $ 15,409 | |||
Investments in affiliates | 11,916 | 11,916 | |||
Capital expenditures | 97 | ||||
Operating segments | GCI Holdings | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 245 | 238 | 491 | 471 | |
Adjusted OIBDA | 92 | 90 | 182 | 177 | |
Total assets | 3,344 | 3,344 | |||
Capital expenditures | 97 | ||||
Operating segments | GCI Holdings | Lease, grant, and revenue from subsidies | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 19 | 20 | 38 | 39 | |
Operating segments | GCI Holdings | Consumer Revenue | Data | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 59 | 57 | 118 | 115 | |
Operating segments | GCI Holdings | Consumer Revenue | Wireless | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 35 | 34 | 70 | 68 | |
Operating segments | GCI Holdings | Consumer Revenue | Other revenue | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 10 | 14 | 22 | 28 | |
Operating segments | GCI Holdings | Business Revenue | Data | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 106 | 96 | 211 | 185 | |
Operating segments | GCI Holdings | Business Revenue | Wireless | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 11 | 11 | 22 | 24 | |
Operating segments | GCI Holdings | Business Revenue | Other revenue | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 5 | 6 | 10 | 12 | |
Operating segments | Charter | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 13,659 | 13,598 | 27,312 | 26,798 | |
Adjusted OIBDA | 5,580 | 5,571 | 10,920 | 10,783 | |
Total assets | 145,615 | 145,615 | |||
Capital expenditures | 5,298 | ||||
Corporate and other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 1 | 6 | |||
Adjusted OIBDA | (5) | (7) | (13) | (14) | |
Total assets | 12,065 | 12,065 | |||
Investments in affiliates | 11,916 | 11,916 | |||
Operating Segments and Corporate and Other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Adjusted OIBDA | 5,667 | 5,654 | 11,089 | 10,946 | |
Total assets | 161,024 | 161,024 | |||
Investments in affiliates | 11,916 | 11,916 | |||
Capital expenditures | 5,395 | ||||
Eliminate equity method affiliate | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Adjusted OIBDA | (5,580) | $ (5,571) | (10,920) | $ (10,783) | |
Total assets | $ (145,615) | (145,615) | |||
Capital expenditures | $ (5,298) |
Segment Information - Performan
Segment Information - Performance Obligations (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 195 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 268 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 143 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 74 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 46 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Segment Information - Reconcili
Segment Information - Reconciliation Of Segment Adjusted OIBDA (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of consolidated segment Adjusted OIBDA to earnings (loss) before income taxes | ||||
Adjusted OIBDA | $ 87 | $ 83 | $ 169 | $ 163 |
Stock-based compensation | (8) | (9) | (16) | (18) |
Depreciation and amortization | (56) | (65) | (114) | (129) |
Litigation settlement | (10) | (10) | ||
Operating income (loss) | 23 | (1) | 39 | 6 |
Interest expense | (52) | (30) | (97) | (56) |
Share of earnings (loss) of affiliate, net | 318 | 386 | 566 | 689 |
Gain (loss) on dilution of investment in affiliate | (5) | (11) | (32) | (67) |
Realized and unrealized gains (losses) on financial instruments, net | 40 | 77 | (74) | 214 |
(Gain) loss on dispositions, net | 179 | 179 | ||
Other, net | 2 | (18) | 16 | (39) |
Earnings (loss) before income taxes | $ 326 | $ 582 | $ 418 | $ 926 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 252 | $ 465 | $ 321 | $ 764 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |