Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | 2024 | |
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 | 18,236,186 | |
Series B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,022,532 | |
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 | 122,589,251 | |
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, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 73 | $ 158 |
Trade and other receivables, net of allowance for credit losses of $5 and $5, respectively | 176 | 178 |
Prepaid and other current assets | 60 | 94 |
Total current assets | 309 | 430 |
Property and equipment, net | 1,109 | 1,053 |
Intangible assets not subject to amortization | ||
Goodwill | 755 | 755 |
Intangible assets subject to amortization, net (note 5) | 436 | 461 |
Other assets, net | 224 | 236 |
Total assets | 15,959 | 15,641 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 101 | 86 |
Deferred revenue | 30 | 30 |
Current portion of debt | 3 | 3 |
Other current liabilities | 50 | 59 |
Total current liabilities | 184 | 178 |
Long-term debt, net, including $1,211 and $1,255 measured at fair value, respectively (note 6) | 3,606 | 3,733 |
Obligations under tower obligations and finance leases, excluding current portion | 81 | 83 |
Long-term deferred revenue | 76 | 65 |
Deferred income tax liabilities | 2,311 | 2,216 |
Preferred stock (note 7) | 201 | 202 |
Other liabilities | 139 | 141 |
Total liabilities | 6,598 | 6,618 |
Equity | ||
Additional paid-in capital | 3,023 | 3,107 |
Accumulated other comprehensive earnings (loss), net of taxes | 40 | 52 |
Retained earnings | 6,279 | 5,843 |
Total stockholders' equity | 9,343 | 9,003 |
Non-controlling interests | 18 | 20 |
Total equity | 9,361 | 9,023 |
Commitments and contingencies (note 9) | ||
Total liabilities and equity | 15,959 | 15,641 |
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 | 41 | 40 |
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) | $ 12,535 | $ 12,116 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Allowance for credit losses | $ 5 | $ 5 |
Long-term debt, measured at fair value | $ 1,211 | $ 1,255 |
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 | 18,236,186 | 18,233,573 |
Common Stock, Shares, Outstanding | 18,236,186 | 18,233,573 |
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 | 2,022,532 | 2,025,232 |
Common Stock, Shares, Outstanding | 2,022,532 | 2,025,232 |
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 | 122,589,251 | 123,704,814 |
Common Stock, Shares, Outstanding | 122,589,251 | 123,704,814 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||||
Revenue | $ 246 | $ 245 | $ 491 | $ 491 |
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) | $ 62 | $ 59 | $ 124 | $ 121 |
Selling, general and administrative, including stock-based compensation (note 8) | 111 | 107 | 216 | 217 |
Depreciation and amortization | 52 | 56 | 102 | 114 |
Total operating costs and expenses | 225 | 222 | 442 | 452 |
Operating income (loss) | 21 | 23 | 49 | 39 |
Other income (expense): | ||||
Interest expense (including amortization of deferred loan fees) | (52) | (52) | (103) | (97) |
Share of earnings (losses) of affiliate (note 4) | 297 | 318 | 577 | 566 |
Gain (loss) on dilution of investment in affiliate (note 4) | (4) | (5) | (32) | (32) |
Realized and unrealized gains (losses) on financial instruments, net (note 3) | (17) | 40 | 59 | (74) |
Other, net | 8 | 2 | 12 | 16 |
Earnings (loss) before income taxes | 253 | 326 | 562 | 418 |
Income tax benefit (expense) | (58) | (74) | (126) | (97) |
Net earnings (loss) | 195 | 252 | 436 | 321 |
Net earnings (loss) attributable to Liberty Broadband shareholders | $ 195 | $ 252 | $ 436 | $ 321 |
Basic net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2) | $ 1.36 | $ 1.73 | $ 3.05 | $ 2.20 |
Diluted net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2) | $ 1.36 | $ 1.71 | $ 3.05 | $ 2.18 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Condensed Consolidated Statements of Comprehensive Earnings (Loss) | ||||
Net earnings (loss) | $ 195 | $ 252 | $ 436 | $ 321 |
Other comprehensive earnings (loss), net of taxes: | ||||
Credit risk on fair value debt instruments gains (loss) | 5 | (3) | (12) | 47 |
Other comprehensive earnings (loss), net of taxes | 5 | (3) | (12) | 47 |
Comprehensive earnings (loss) | 200 | 249 | 424 | 368 |
Comprehensive earnings (loss) attributable to Liberty Broadband shareholders | $ 200 | $ 249 | $ 424 | $ 368 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 436 | $ 321 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 102 | 114 |
Stock-based compensation | 14 | 16 |
Share of (earnings) losses of affiliate, net | (577) | (566) |
(Gain) loss on dilution of investment in affiliate | 32 | 32 |
Realized and unrealized (gains) losses on financial instruments, net | (59) | 74 |
Deferred income tax expense (benefit) | 101 | 95 |
Other, net | (2) | (2) |
Changes in operating assets and liabilities: | ||
Current and other assets | 57 | (40) |
Payables and other liabilities | (25) | (99) |
Net cash provided by (used in) operating activities | 79 | (55) |
Cash flows from investing activities: | ||
Capital expenditures | (123) | (97) |
Grant proceeds received for capital expenditures | 19 | 2 |
Cash received for Charter shares repurchased by Charter | 116 | 42 |
Cash released from escrow related to dispositions | 23 | |
Purchases of investments | (53) | |
Other investing activities, net | (16) | 2 |
Net cash provided by (used in) investing activities | (4) | (81) |
Cash flows from financing activities: | ||
Borrowings of debt | 266 | 1,451 |
Repayments of debt, tower obligations and finance leases | (348) | (1,545) |
Repurchases of Liberty Broadband common stock | (89) | (40) |
Indemnification payment to Qurate Retail | (25) | |
Other financing activities, net | (1) | (2) |
Net cash provided by (used in) financing activities | (172) | (161) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (97) | (297) |
Cash, cash equivalents and restricted cash, beginning of period | 176 | 400 |
Cash, cash equivalents and restricted cash, end of period | $ 79 | $ 103 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Cash and cash equivalents | $ 73 | $ 158 |
Total cash and cash equivalents and restricted cash at end of period | 79 | 176 |
Other Noncurrent Assets | ||
Restricted cash | 1 | 2 |
Other current assets | ||
Restricted cash | $ 5 | $ 16 |
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 (loss) | Retained earnings | Noncontrolling interest in equity of subsidiaries | Total |
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 |
Balance at Dec. 31, 2023 | 1 | 3,107 | 52 | 5,843 | 20 | 9,023 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 436 | 436 | ||||
Other comprehensive earnings (loss), net of taxes | (12) | (12) | ||||
Stock-based compensation | 14 | 14 | ||||
Liberty Broadband stock repurchases | (89) | (89) | ||||
Noncontrolling interest activity at Charter and other | (9) | (2) | (11) | |||
Balance at Jun. 30, 2024 | 1 | 3,023 | 40 | 6,279 | 18 | 9,361 |
Balance at Mar. 31, 2024 | 1 | 3,018 | 35 | 6,084 | 20 | 9,158 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 195 | 195 | ||||
Other comprehensive earnings (loss), net of taxes | 5 | 5 | ||||
Stock-based compensation | 7 | 7 | ||||
Noncontrolling interest activity at Charter and other | (2) | (2) | (4) | |||
Balance at Jun. 30, 2024 | $ 1 | $ 3,023 | $ 40 | $ 6,279 | $ 18 | $ 9,361 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023, 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, 2023. 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. 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, 2024, we repurchased an aggregate of 1.1 million shares of Liberty Broadband Series C common stock for a total purchase price of $89 million. During the six months ended June 30, 2023, we repurchased 459 thousand shares of Liberty Broadband Series A and Series C common stock for a total purchase price of $40 million. As of June 30, 2024, the amount remaining under the authorized repurchase program is approximately $1,685 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 has exchanged 481,149 total shares of Liberty Broadband Series B common stock for the same number of Liberty Broadband Series C common stock as of June 30, 2024 under the Exchange Agreement. 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 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. Additionally, in connection with a prior transaction, GCI Liberty and Qurate Retail, Inc. (“Qurate Retail”) 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 the facilities sharing agreement, Liberty Broadband shares office space with Liberty and related amenities at Liberty’s corporate headquarters. Pursuant to the services agreement, Liberty provides Liberty Broadband with general and administrative services including legal, tax, accounting, treasury, information technology, cybersecurity and investor relations support. Liberty Broadband reimburses Liberty for direct, out-of-pocket expenses incurred by Liberty in providing these services which are negotiated semi-annually, as necessary. Pursuant to the services agreement, in connection with Liberty’s employment arrangement with Gregory B. Maffei, the Company’s President and Chief Executive Officer, components of Mr. Maffei’s compensation are either paid directly to him or reimbursed to Liberty, based on allocations set forth in the services agreement, currently set at 23% for the Company but subject to adjustment on an annual basis and upon the occurrence of certain events. Under these various agreements, amounts reimbursable to Liberty were approximately $1 million for both the three months ended June 30, 2024 and 2023 and $3 million for both the six months ended June 30, 2024, and 2023. Liberty Broadband had a tax sharing receivable with Qurate Retail of approximately $20 million and $16 million as of June 30, 2024 and December 31, 2023, respectively, included in Other assets in the condensed consolidated balance sheets. |
Earnings Attributable to Libert
Earnings Attributable to Liberty Broadband Stockholders Per Common Share | 6 Months Ended |
Jun. 30, 2024 | |
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 the three months ended June 30, 2024 and 2023 are 3 million and 2 million potential common shares, respectively, because their inclusion would have been antidilutive. Excluded from diluted EPS for the six months ended June 30, 2024 and 2023 are 3 million and 2 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, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (numbers of shares in millions) Basic WASO 143 146 143 146 Potentially dilutive shares (1) — 1 — 1 Diluted WASO 143 147 143 147 (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, 2024 | |
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, 2024 December 31, 2023 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 $ 26 26 — 78 78 — Exchangeable senior debentures $ 1,211 — 1,211 1,255 — 1,255 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 prior to their redemption in the third quarter of 2023, and the 2.75% Debentures and the 1.75% Debentures prior to their redemption in the first quarter of 2023 (each as defined in note 6)) and long-term debt (with the exception of the 3.125% Debentures due 2053 (as defined in note 6)). With the exception of long-term debt and preferred stock, 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, 2024 2023 2024 2023 amounts in millions Exchangeable senior debentures (1) $ (17) 22 59 (89) Other — 18 — 15 $ (17) 40 59 (74) (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 gain of $5 million and a loss of $3 million for the three months ended June 30, 2024 and 2023, respectively, and a loss of $ 15 million and a gain of $ 61 million for the six months ended June 30, 2024 and 2023, respectively. The cumulative change was a gain of $40 million as of June 30, 2024. |
Investment in Charter Accounted
Investment in Charter Accounted for Using the Equity Method | 6 Months Ended |
Jun. 30, 2024 | |
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 designated by Liberty Broadband. As of June 30, 2024, the carrying and market value of Liberty Broadband’s ownership in Charter was approximately $12.5 billion and $13.7 billion, respectively. We own an approximate 32.2% economic ownership interest in Charter, based on shares of Charter’s Class A common stock issued and outstanding as of June 30, 2024. Upon the closing of the Time Warner Cable, LLC 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, 2024, 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 343,903 and shares of Charter Class A common stock to Charter for $116 million and $42 million during the six months ended June 30, 2024 and 2023, respectively, to maintain our fully diluted ownership percentage at 26% . Subsequent to June 30, 2024, Liberty Broadband sold 139,151 shares of Charter Class A common stock to Charter for $39 million in July 2024. 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, 2024 2023 Property and equipment, net $ 338 403 Customer relationships, net 1,905 2,049 Franchise fees 3,843 3,843 Trademarks 29 29 Goodwill 4,016 4,049 Debt (282) (317) Deferred income tax liability (1,458) (1,472) $ 8,391 8,584 Property and equipment and customer relationships have weighted average remaining useful lives of approximately 3 years and 7 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 decrease in excess basis for the six months ended June 30, 2024 was primarily due to amortization expense during the period, as well as the Company’s participation in Charter’s share buyback program. The Company had dilution losses of $4 million and $5 million during the three months ended June 30, 2024 and 2023, respectively, and dilution losses of $32 million and $32 million during the six months ended June 30, 2024 and 2023, 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, 2024 and 2023. Summarized unaudited financial information for Charter is as follows: Charter condensed consolidated balance sheets June 30, 2024 December 31, 2023 amounts in millions Current assets $ 4,133 4,132 Property and equipment, net 41,256 39,520 Goodwill 29,668 29,668 Intangible assets, net 68,763 69,141 Other assets 4,791 4,732 Total assets $ 148,611 147,193 Current liabilities $ 10,726 13,214 Deferred income taxes 18,927 18,954 Long-term debt 96,692 95,777 Other liabilities 5,552 4,530 Equity 16,714 14,718 Total liabilities and shareholders’ equity $ 148,611 147,193 Charter condensed consolidated statements of operations Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 amounts in millions Revenue $ 13,685 13,659 27,364 27,312 Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) 8,173 8,305 16,569 16,816 Depreciation and amortization 2,170 2,172 4,360 4,378 Other operating (income) expense, net 79 (58) 41 (48) 10,422 10,419 20,970 21,146 Operating income 3,263 3,240 6,394 6,166 Interest expense, net (1,328) (1,298) (2,644) (2,563) Other income (expense), net (85) (85) (174) (189) Income tax (expense) benefit (427) (444) (873) (818) Net income (loss) 1,423 1,413 2,703 2,596 Less: Net income attributable to noncontrolling interests (192) (190) (366) (352) Net income (loss) attributable to Charter shareholders $ 1,231 1,223 2,337 2,244 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Assets | |
Intangible Assets | (5 Intangible Assets Intangible Assets Subject to Amortization, net June 30, 2024 December 31, 2023 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in millions Customer relationships $ 515 (153) 362 515 (132) 383 Other amortizable intangible assets 160 (86) 74 156 (78) 78 Total $ 675 (239) 436 671 (210) 461 Remainder of 2024 $ 29 2025 $ 54 2026 $ 51 2027 $ 49 2028 $ 48 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt | |
Debt | (6) Debt Outstanding principal Carrying value June 30, June 30, December 31, 2024 2024 2023 amounts in millions Margin Loan Facility $ 1,330 1,330 1,460 3.125% Exchangeable Senior Debentures due 2053 1,265 1,211 1,255 Senior notes 600 621 623 Senior credit facility 443 443 394 Wells Fargo note payable 4 4 5 Deferred financing costs — (1) Total debt $ 3,642 3,609 3,736 Debt classified as current (3) (3) Total long-term debt $ 3,606 3,733 Margin Loan Facility On June 26, 2024, a bankruptcy remote wholly owned subsidiary of the Company (“ ”) entered into Amendment No. 8 to Margin Loan Agreement (the “ ”), which amends SPV’s margin loan agreement, dated as of August 31, 2017 (as amended by the Eighth 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 Eighth Amendment. SPV’s obligations under the Margin Loan Facility are secured by shares of Charter owned by SPV. The Eighth Amendment provided for, among other things, the extension of the scheduled maturity date to June 30, 2027. Outstanding borrowings under the Margin Loan Agreement were $1.3 billion and $1.5 billion as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, SPV was permitted to borrow an additional $970 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 due 2053”), 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 due 2053, 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 due 2053, 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 were attributable to the 3.125% Debentures due 2053. 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 due 2053 may be redeemed by the Company, in whole or in part, on or after April 6, 2026. Holders of the 3.125% Debentures due 2053 also have the right to require the Company to purchase their 3.125% Debentures due 2053 on April 6, 2026. The redemption and purchase price will generally equal 100% of the adjusted principal amount of the 3.125% Debentures due 2053 plus accrued and unpaid interest to the redemption date, plus any final period distribution. As of June 30, 2024, a holder of the 3.125% Debentures due 2053 does not have the ability to exchange their debentures and, accordingly, the 3.125% Debentures due 2053 have been classified as long-term debt within the condensed consolidated balance sheet as of June 30, 2024. The Company used the net proceeds of the offering of the 3.125% Debentures due 2053, together with existing cash on hand, to repurchase all of the outstanding 1.75% 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 Realized and unrealized gains (losses) on financial instruments, net 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. On July 2, 2024, the Company closed a private offering of $860 million aggregate original principal amount of its 3.125% Exchangeable Senior Debentures due 2054 (the “ 3.125% Debentures due 2054”), including debentures with an aggregate original principal amount of $60 million issued pursuant to the exercise of an option granted to the initial purchasers. Upon an exchange of the 3.125% Debentures due 2054, 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, 2.5442 shares of Charter Class A common stock are attributable to each $1,000 original principal amount of 3.125% Debentures due 2054, representing an initial exchange price of approximately $393.05 for each share of Charter Class A common stock. A total of 2,188,012 shares of Charter Class A common stock are initially attributable to the 3.125% Debentures due 2054. Interest is payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing December 31, 2024. The 3.125% Debentures due 2054 may be redeemed by the Company, in whole or in part, on or after December 15, 2028. Holders of the 3.125% Debentures due 2054 also have the right to require the Company to purchase their 3.125% Debentures due 2054 on December 15, 2028. The redemption and purchase price will generally equal 100% of the adjusted principal amount of the 3.125% Debentures due 2054 plus accrued and unpaid interest to the redemption date, plus any final period distribution. In connection with the closing of the private offering of the 3.125% Debentures due 2054, the Company repaid $540 million of borrowings under the Margin Loan Agreement, leaving $1.15 billion available for borrowing, and repurchased a total of $300 million in aggregate principal amount of the 3.125% Debentures due 2053 pursuant to individually privately negotiated transactions. Senior Notes 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 $21 million at June 30, 2024. Such premium is being amortized to interest expense in the accompanying condensed consolidated statements of operations. Senior Credit Facility 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 the London Interbank Offered Rate (“LIBOR”). Following the amendment in June 2023, 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 Senior Credit Facility has several leverage ratios defined in the Senior Credit Facility that are referenced throughout. 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 (as defined in the Senior Credit Facility) 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 in June 2023, all rates indexed to SOFR were previously indexed to LIBOR. The Senior Credit Facility also has a commitment fee that accrues at a per annum rate between 0.375% and 0.500% on the daily unused amount of the revolving credit facility depending on GCI, LLC’s total leverage ratio. GCI, LLC’s first lien leverage ratio 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, 2024, there was $243 million outstanding under the Term Loan A, $200 million outstanding under the revolving portion of the Senior Credit Facility and $3 million in letters of credit under the Senior Credit Facility, leaving $347 million available for borrowing. Wells Fargo Note Payable 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"). Outstanding borrowings on the Wells Fargo Note Payable were $4 million and $5 million as of June 30, 2024 and December 31, 2023, respectively. 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 Wells Fargo Note Payable is subject to similar affirmative and negative covenants as the Senior Credit Facility. The obligations under the Wells Fargo Note Payable are secured by a security interest and lien on the building purchased with the note. Fair Value of Debt The fair value of the Senior Notes was $548 million at June 30, 2024 (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, 2024. |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 was $162 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 23, 2024, 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 15, 2024 to shareholders of record of the Liberty Broadband Preferred Stock at the close of business on July 1, 2024. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
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 $7 million and $8 million of stock-based compensation during the three months ended June 30, 2024 and 2023, respectively, and $14 million and $16 million of stock-based compensation during the six months ended June 30, 2024 and 2023, respectively. Liberty Broadband – Grants During the six months ended June 30, 2024, Liberty Broadband granted 183 thousand options to purchase shares of Liberty Broadband Series C common stock (“LBRDK”) to our Chief Executive Officer in connection with his employment agreement. Such options had a GDFV of $20.18 per share and vest on December 31, 2024. There were no options to purchase shares of Liberty Broadband Series A common stock (“LBRDA”) or Liberty Broadband 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 LBRDK WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2024 4,063 $ 96.23 Granted 183 $ 56.20 Exercised — $ — Forfeited/Cancelled — $ — Outstanding at June 30, 2024 4,246 $ 94.51 2.7 $ 10 Exercisable at June 30, 2024 3,129 $ 88.30 1.9 $ 10 As of June 30, 2024, there were no outstanding options to purchase shares of LBRDA. During the six months ended June 30, 2024, Liberty Broadband had 150 thousand LBRDB options with a WAEP of $97.21 that were forfeited. As of June 30, 2024, 96 thousand LBRDB options remained outstanding and exercisable at a WAEP of $94.05, a weighted average remaining contractual life of 0.8 years and aggregate intrinsic value of zero. As of June 30, 2024, 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 1.7 years. As of June 30, 2024, Liberty Broadband reserved 4.3 million shares of LBRDB and LBRDK for issuance under exercise privileges of outstanding stock options. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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. Rural Health Care (“RHC”) Program |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024, 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, 2023. 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, 2024 2023 2024 2023 amounts in millions GCI Holdings Consumer Revenue Data $ 60 59 120 118 Wireless 34 35 69 70 Other 10 10 19 22 Business Revenue Data 108 106 215 211 Wireless 10 11 21 22 Other 4 5 8 10 Lease, grant, and revenue from subsidies 20 19 39 38 Total GCI Holdings 246 245 491 491 Corporate and other — — — — Total $ 246 245 491 491 The Company expects to recognize revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) of approximately $231 million in the remainder of 2024 2025 2026 2027 For segment reporting purposes, Liberty Broadband defines Adjusted OIBDA as revenue less operating expenses and selling, general and administrative expenses excluding stock-based compensation. Liberty Broadband believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net earnings, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Liberty Broadband generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices. Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 amounts in millions GCI Holdings $ 86 92 176 182 Charter 5,586 5,580 11,121 10,920 Corporate and other (6) (5) (11) (13) 5,666 5,667 11,286 11,089 Eliminate equity method affiliate (5,586) (5,580) (11,121) (10,920) Consolidated Liberty Broadband $ 80 87 165 169 Other Information June 30, 2024 Total Investments Capital assets in affiliate expenditures amounts in millions GCI Holdings $ 3,294 — 123 Charter 148,611 — 5,644 Corporate and other 12,665 12,535 — 164,570 12,535 5,767 Eliminate equity method affiliate (148,611) — (5,644) Consolidated Liberty Broadband $ 15,959 12,535 123 Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 amounts in millions Adjusted OIBDA $ 80 87 165 169 Stock-based compensation (7) (8) (14) (16) Depreciation and amortization (52) (56) (102) (114) Operating income (loss) 21 23 49 39 Interest expense (52) (52) (103) (97) Share of earnings (loss) of affiliate, net 297 318 577 566 Gain (loss) on dilution of investment in affiliate (4) (5) (32) (32) Realized and unrealized gains (losses) on financial instruments, net (17) 40 59 (74) Other, net 8 2 12 16 Earnings (loss) before income taxes $ 253 326 562 418 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 195 | $ 252 | $ 436 | $ 321 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
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 |
Earnings Attributable to Libe_2
Earnings Attributable to Liberty Broadband Stockholders Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (numbers of shares in millions) Basic WASO 143 146 143 146 Potentially dilutive shares (1) — 1 — 1 Diluted WASO 143 147 143 147 (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, 2024 | |
Assets and Liabilities Measured at Fair Value | |
Schedule of assets and liabilities measured at fair value | June 30, 2024 December 31, 2023 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 $ 26 26 — 78 78 — Exchangeable senior debentures $ 1,211 — 1,211 1,255 — 1,255 |
Schedule of realized and unrealized gains (losses) on financial instruments | Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 amounts in millions Exchangeable senior debentures (1) $ (17) 22 59 (89) Other — 18 — 15 $ (17) 40 59 (74) (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 gain of $5 million and a loss of $3 million for the three months ended June 30, 2024 and 2023, respectively, and a loss of $ 15 million and a gain of $ 61 million for the six months ended June 30, 2024 and 2023, respectively. The cumulative change was a gain of $40 million as of June 30, 2024. |
Investment in Charter Account_2
Investment in Charter Accounted for Using the Equity Method (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 2023 Property and equipment, net $ 338 403 Customer relationships, net 1,905 2,049 Franchise fees 3,843 3,843 Trademarks 29 29 Goodwill 4,016 4,049 Debt (282) (317) Deferred income tax liability (1,458) (1,472) $ 8,391 8,584 |
Summary of financial information for Charter | Charter condensed consolidated balance sheets June 30, 2024 December 31, 2023 amounts in millions Current assets $ 4,133 4,132 Property and equipment, net 41,256 39,520 Goodwill 29,668 29,668 Intangible assets, net 68,763 69,141 Other assets 4,791 4,732 Total assets $ 148,611 147,193 Current liabilities $ 10,726 13,214 Deferred income taxes 18,927 18,954 Long-term debt 96,692 95,777 Other liabilities 5,552 4,530 Equity 16,714 14,718 Total liabilities and shareholders’ equity $ 148,611 147,193 Charter condensed consolidated statements of operations Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 amounts in millions Revenue $ 13,685 13,659 27,364 27,312 Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) 8,173 8,305 16,569 16,816 Depreciation and amortization 2,170 2,172 4,360 4,378 Other operating (income) expense, net 79 (58) 41 (48) 10,422 10,419 20,970 21,146 Operating income 3,263 3,240 6,394 6,166 Interest expense, net (1,328) (1,298) (2,644) (2,563) Other income (expense), net (85) (85) (174) (189) Income tax (expense) benefit (427) (444) (873) (818) Net income (loss) 1,423 1,413 2,703 2,596 Less: Net income attributable to noncontrolling interests (192) (190) (366) (352) Net income (loss) attributable to Charter shareholders $ 1,231 1,223 2,337 2,244 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Assets | |
Schedule of Intangible Assets Subject to Amortization, net | June 30, 2024 December 31, 2023 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in millions Customer relationships $ 515 (153) 362 515 (132) 383 Other amortizable intangible assets 160 (86) 74 156 (78) 78 Total $ 675 (239) 436 671 (210) 461 |
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 2024 $ 29 2025 $ 54 2026 $ 51 2027 $ 49 2028 $ 48 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt | |
Schedule of debt | Outstanding principal Carrying value June 30, June 30, December 31, 2024 2024 2023 amounts in millions Margin Loan Facility $ 1,330 1,330 1,460 3.125% Exchangeable Senior Debentures due 2053 1,265 1,211 1,255 Senior notes 600 621 623 Senior credit facility 443 443 394 Wells Fargo note payable 4 4 5 Deferred financing costs — (1) Total debt $ 3,642 3,609 3,736 Debt classified as current (3) (3) Total long-term debt $ 3,606 3,733 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 LBRDK WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2024 4,063 $ 96.23 Granted 183 $ 56.20 Exercised — $ — Forfeited/Cancelled — $ — Outstanding at June 30, 2024 4,246 $ 94.51 2.7 $ 10 Exercisable at June 30, 2024 3,129 $ 88.30 1.9 $ 10 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Information | |
Schedule of performance measures | Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 amounts in millions GCI Holdings Consumer Revenue Data $ 60 59 120 118 Wireless 34 35 69 70 Other 10 10 19 22 Business Revenue Data 108 106 215 211 Wireless 10 11 21 22 Other 4 5 8 10 Lease, grant, and revenue from subsidies 20 19 39 38 Total GCI Holdings 246 245 491 491 Corporate and other — — — — Total $ 246 245 491 491 |
Schedule of OIBDA By Segment | Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 amounts in millions GCI Holdings $ 86 92 176 182 Charter 5,586 5,580 11,121 10,920 Corporate and other (6) (5) (11) (13) 5,666 5,667 11,286 11,089 Eliminate equity method affiliate (5,586) (5,580) (11,121) (10,920) Consolidated Liberty Broadband $ 80 87 165 169 |
Schedule of Other Information By Segment | June 30, 2024 Total Investments Capital assets in affiliate expenditures amounts in millions GCI Holdings $ 3,294 — 123 Charter 148,611 — 5,644 Corporate and other 12,665 12,535 — 164,570 12,535 5,767 Eliminate equity method affiliate (148,611) — (5,644) Consolidated Liberty Broadband $ 15,959 12,535 123 |
Schedule of reconciliation of segment Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes | Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 amounts in millions Adjusted OIBDA $ 80 87 165 169 Stock-based compensation (7) (8) (14) (16) Depreciation and amortization (52) (56) (102) (114) Operating income (loss) 21 23 49 39 Interest expense (52) (52) (103) (97) Share of earnings (loss) of affiliate, net 297 318 577 566 Gain (loss) on dilution of investment in affiliate (4) (5) (32) (32) Realized and unrealized gains (losses) on financial instruments, net (17) 40 59 (74) Other, net 8 2 12 16 Earnings (loss) before income taxes $ 253 326 562 418 |
Basis of Presentation - Stock R
Basis of Presentation - Stock Repurchase (Details) - USD ($) shares in Thousands, $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Charter. | ||
Equity, Class of Treasury Stock [Line Items] | ||
Fully Diluted Ownership Percentage | 26% | |
Series C common stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares repurchased | 1,100 | |
Value of stock repurchased | $ 89 | |
Common Class A And C | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares repurchased | 459 | |
Value of stock repurchased | $ 40 | |
Remaining authorized repurchase amount | $ 1,685 |
Basis of Presentation - Exchang
Basis of Presentation - Exchange Agreement with Chairman (Details) | Jun. 30, 2024 shares |
Series B common stock | |
Cumulative shares converted | 481,149 |
Basis of Presentation - Spin-Of
Basis of Presentation - Spin-Off Arrangements (Details) - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Liberty | |||||
Related Party Transaction [Line Items] | |||||
Reimbursable amount | $ 1 | $ 1 | $ 3 | $ 3 | |
Qurate Retail | |||||
Related Party Transaction [Line Items] | |||||
Tax sharing receivable | $ 20 | $ 20 | $ 16 | ||
CEO | Liberty | |||||
Related Party Transaction [Line Items] | |||||
CEO compensation allocation percentage | 23% |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Attributable to Liberty Broadband Stockholders Per Common Share | ||||
Antidilutive shares | 3 | 2 | 3 | 2 |
Basic WASO | 143 | 146 | 143 | 146 |
Potentially dilutive shares | 1 | 1 | ||
Diluted WASO | 143 | 147 | 143 | 147 |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value - Schedule of Assets and Liabilities (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 26 | $ 78 |
Exchangeable senior debentures | 1,211 | 1,255 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 26 | 78 |
Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Exchangeable senior debentures | $ 1,211 | $ 1,255 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Realized and unrealized gains (losses) on financial instruments, net (note 3) | $ (17) | $ 40 | $ 59 | $ (74) |
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) | $ (17) | 22 | $ 59 | (89) |
Other. | ||||
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 | $ 15 |
Assets and Liabilities Measur_5
Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jul. 02, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Feb. 28, 2023 | |
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% | ||||||||
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% | |||||
3.125% Exchangeable Senior Debentures due 2053 | Subsequent event | |||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||
Interest rate (as a percent) | 3.125% | ||||||||
Exchangeable senior debentures | |||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||
Change in fair value | $ 5 | $ (3) | $ (15) | $ 61 | |||||
Cumulative change | $ 40 |
Investment in Charter Account_3
Investment in Charter Accounted for Using the Equity Method (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jul. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Investments in affiliates accounted for using the Equity Method | ||||
Amount of Charter sold | $ 116 | $ 42 | ||
Charter. | ||||
Investments in affiliates accounted for using the Equity Method | ||||
Carrying value of equity method investment | 12,535 | $ 12,116 | ||
Market value of equity method investment | $ 13,700 | |||
Ownership percentage | 32.20% | |||
Fully diluted ownership percentage | 26% | |||
Ownership capped percentage | 25.01% | |||
Voting interest cap | 25.01% | |||
Series A common stock | Charter. | ||||
Investments in affiliates accounted for using the Equity Method | ||||
Equity investment shares sold | 343,903 | 120,149 | ||
Amount of Charter sold | $ 116 | $ 42 | ||
Series A common stock | Charter. | Subsequent event | ||||
Investments in affiliates accounted for using the Equity Method | ||||
Equity investment shares sold | 139,151 | |||
Amount of Charter sold | $ 39 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Excess basis allocation within memo accounts | |||||
Share of equity investment income (losses) | $ 297 | $ 318 | $ 577 | $ 566 | |
Loss on dilution of investment in affiliate | (4) | (5) | (32) | (32) | |
Charter. | |||||
Excess basis allocation within memo accounts | |||||
Property and equipment, net | 338 | 338 | $ 403 | ||
Customer relationships, net | 1,905 | 1,905 | 2,049 | ||
Franchise fees | 3,843 | 3,843 | 3,843 | ||
Trademarks | 29 | 29 | 29 | ||
Goodwill | 4,016 | 4,016 | 4,049 | ||
Debt | (282) | (282) | (317) | ||
Deferred income tax liability | (1,458) | (1,458) | (1,472) | ||
Total | 8,391 | 8,391 | $ 8,584 | ||
Amortization of Deferred Charges | 97 | 65 | 169 | 134 | |
Loss on dilution of investment in affiliate | $ (4) | $ (5) | $ (32) | $ (32) | |
Charter. | Customer relationships | |||||
Excess basis allocation within memo accounts | |||||
Remaining useful lives of customer relationships | 7 years | 7 years | |||
Charter. | Property, Plant and Equipment | |||||
Excess basis allocation within memo accounts | |||||
Remaining useful lives of property and equipment | 3 years | 3 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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Investments in affiliates accounted for using the Equity Method | |||||
Current assets | $ 309 | $ 309 | $ 430 | ||
Property and equipment, net | 1,109 | 1,109 | 1,053 | ||
Goodwill | 755 | 755 | 755 | ||
Other assets | 224 | 224 | 236 | ||
Total assets | 15,959 | 15,959 | 15,641 | ||
Current liabilities | 184 | 184 | 178 | ||
Deferred income taxes | 2,311 | 2,311 | 2,216 | ||
Long-term debt | 3,609 | 3,609 | 3,736 | ||
Other liabilities | 139 | 139 | 141 | ||
Equity | 9,343 | 9,343 | 9,003 | ||
Total liabilities and equity | 15,959 | 15,959 | 15,641 | ||
Operating costs and expenses (excluding depreciation and amortization) | 62 | $ 59 | 124 | $ 121 | |
Depreciation and amortization | 52 | 56 | 102 | 114 | |
Total operating costs and expenses | 225 | 222 | 442 | 452 | |
Operating income (loss) | 21 | 23 | 49 | 39 | |
Other income (expense), net | 8 | 2 | 12 | 16 | |
Income tax benefit (expense) | (58) | (74) | (126) | (97) | |
Net earnings (loss) | 195 | 252 | 436 | 321 | |
Net earnings (loss) attributable to Liberty Broadband shareholders | 195 | 252 | 436 | 321 | |
Charter. | |||||
Investments in affiliates accounted for using the Equity Method | |||||
Current assets | 4,133 | 4,133 | 4,132 | ||
Property and equipment, net | 41,256 | 41,256 | 39,520 | ||
Goodwill | 29,668 | 29,668 | 29,668 | ||
Intangible assets, net | 68,763 | 68,763 | 69,141 | ||
Other assets | 4,791 | 4,791 | 4,732 | ||
Total assets | 148,611 | 148,611 | 147,193 | ||
Current liabilities | 10,726 | 10,726 | 13,214 | ||
Deferred income taxes | 18,927 | 18,927 | 18,954 | ||
Long-term debt | 96,692 | 96,692 | 95,777 | ||
Other liabilities | 5,552 | 5,552 | 4,530 | ||
Equity | 16,714 | 16,714 | 14,718 | ||
Total liabilities and equity | 148,611 | 148,611 | $ 147,193 | ||
Revenue | 13,685 | 13,659 | 27,364 | 27,312 | |
Operating costs and expenses (excluding depreciation and amortization) | 8,173 | 8,305 | 16,569 | 16,816 | |
Depreciation and amortization | 2,170 | 2,172 | 4,360 | 4,378 | |
Other operating (income) expense, net | 79 | (58) | 41 | (48) | |
Total operating costs and expenses | 10,422 | 10,419 | 20,970 | 21,146 | |
Operating income (loss) | 3,263 | 3,240 | 6,394 | 6,166 | |
Interest expense, net | (1,328) | (1,298) | (2,644) | (2,563) | |
Other income (expense), net | (85) | (85) | (174) | (189) | |
Income tax benefit (expense) | (427) | (444) | (873) | (818) | |
Net earnings (loss) | 1,423 | 1,413 | 2,703 | 2,596 | |
Less: Net income attributable to noncontrolling interests | (192) | (190) | (366) | (352) | |
Net earnings (loss) attributable to Liberty Broadband shareholders | $ 1,231 | $ 1,223 | $ 2,337 | $ 2,244 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets Subject to Amortization, net (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 675 | $ 671 |
Accumulated Amortization | (239) | (210) |
Net carrying amount | 436 | 461 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 515 | 515 |
Accumulated Amortization | (153) | (132) |
Net carrying amount | 362 | 383 |
Other amortizable intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 160 | 156 |
Accumulated Amortization | (86) | (78) |
Net carrying amount | $ 74 | $ 78 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Intangible Assets | ||||
Amortization expense | $ 15 | $ 16 | $ 30 | $ 32 |
Years ending December 31, | ||||
Remainder of 2024 | 29 | 29 | ||
2025 | 54 | 54 | ||
2026 | 51 | 51 | ||
2027 | 49 | 49 | ||
2028 | $ 48 | $ 48 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Feb. 28, 2023 |
Debt Instrument [Line Items] | |||
Outstanding principal | $ 3,642 | ||
Deferred financing costs | $ (1) | ||
Total debt | 3,609 | 3,736 | |
Debt classified as current | (3) | (3) | |
Total long-term debt | 3,606 | 3,733 | |
3.125% Exchangeable Senior Debentures due 2053 | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 1,265 | ||
Carrying value | $ 1,211 | $ 1,255 | |
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% |
Senior notes | |||
Debt Instrument [Line Items] | |||
Outstanding principal | $ 600 | ||
Carrying value | 621 | $ 623 | |
Line of credit | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 443 | ||
Carrying value | 443 | 394 | |
Wells Fargo note payable | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 4 | ||
Carrying value | 4 | 5 | |
SPV | Margin Loan Facility | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 1,330 | ||
Carrying value | $ 1,330 | $ 1,460 |
Debt (Details)
Debt (Details) - USD ($) | 6 Months Ended | |||||||
Jul. 02, 2024 | Jun. 26, 2024 | Feb. 28, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Margin Loan Facility | Subsequent event | ||||||||
Debt disclosures | ||||||||
Repayment of debt | $ 540,000,000 | |||||||
Remaining borrowing capacity | 1,150,000,000 | |||||||
3.125% Exchangeable Senior Debentures due 2054 | Subsequent event | ||||||||
Debt disclosures | ||||||||
Principal amount | $ 860,000,000 | |||||||
Interest rate (as a percent) | 3.125% | |||||||
Shares attributable to debentures per $1,000 original principal amount of Debentures | 2.5442 | |||||||
Total shares attributable to debentures | 2,188,012 | |||||||
Debt instrument, face amount per debenture | $ 1,000 | |||||||
Exchange price of shares attributable to debentures | $ 393.05 | |||||||
Percentage of redemption and purchase price | 100% | |||||||
3.125% Exchangeable Senior Debentures due 2053 | ||||||||
Debt disclosures | ||||||||
Carrying value | $ 1,211,000,000 | $ 1,255,000,000 | ||||||
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% | |||||||
3.125% Exchangeable Senior Debentures due 2053 | Subsequent event | ||||||||
Debt disclosures | ||||||||
Debt instrument, repurchased face amount | $ 300,000,000 | |||||||
Interest rate (as a percent) | 3.125% | |||||||
Exchangeable Senior Debentures Option | ||||||||
Debt disclosures | ||||||||
Principal amount | $ 165,000,000 | |||||||
Exchangeable Senior Debentures Option | Subsequent event | ||||||||
Debt disclosures | ||||||||
Principal amount | $ 60,000,000 | |||||||
2.75% Exchangeable Senior Debentures due 2050 | ||||||||
Debt disclosures | ||||||||
Interest rate (as a percent) | 2.75% | 2.75% | ||||||
1.25% Exchangeable Senior Debentures due 2050 | ||||||||
Debt disclosures | ||||||||
Interest rate (as a percent) | 1.25% | |||||||
1.75% Exchangeable Senior Debentures due 2046 | ||||||||
Debt disclosures | ||||||||
Interest rate (as a percent) | 1.75% | 1.75% | ||||||
Line of credit | ||||||||
Debt disclosures | ||||||||
Carrying value | $ 443,000,000 | $ 394,000,000 | ||||||
SPV | Margin Loan Facility | ||||||||
Debt disclosures | ||||||||
Carrying value | $ 1,330,000,000 | $ 1,460,000,000 | ||||||
Number of business days prior to the maturity date | 5 days | |||||||
Remaining borrowing capacity | $ 970,000,000 | |||||||
SPV | Margin Loan Facility | Charter. | Asset Pledged as Collateral | ||||||||
Debt disclosures | ||||||||
Shares owned | 19,100,000 | |||||||
Value of pledged collateral | $ 5,700,000,000 | |||||||
SPV | Margin Loan Facility | SOFR | ||||||||
Debt disclosures | ||||||||
Interest rate basis | SOFR | |||||||
Basis spread on variable rate | 1.875% | |||||||
Commitment Fee Percentage | 0.50% | |||||||
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, 2024 | Dec. 31, 2023 | Oct. 15, 2021 |
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 3,642 | |||||
Fair value of debt | 1,211 | $ 1,255 | ||||
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 | 548 | |||||
Senior Notes | GCI Liberty Inc | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 600 | |||||
Interest rate (as a percent) | 4.75% | |||||
Aggregate unamortized premium | 21 | |||||
Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 443 | |||||
Line of credit | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Amount available for borrowing | 347 | |||||
Line of credit | Minimum | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||||
Line of credit | Maximum | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||
Line of credit | Revolving Credit Facility | GCI, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 200 | |||||
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 | 243 | |||||
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 | $ 4 | $ 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 | 3 Months Ended | 6 Months Ended | |
Dec. 18, 2020 USD ($) period $ / shares | Jun. 30, 2024 USD ($) Vote / shares $ / shares shares | Jun. 30, 2024 USD ($) Vote / shares shares | |
Preferred stock vote per share | Vote / shares | 0.33 | 0.33 | |
Preferred stock, additional shares authorized | 42,700,000 | ||
Liquidation price per share | $ / shares | $ 25 | ||
Preferred stock fair value | $ | $ 203 | $ 162 | $ 162 |
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 | 7,300,000 | |
Preferred shares, shares issued | 7,183,812 | 7,183,812 | |
Preferred shares, shares outstanding | 7,183,812 | 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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stock-Based Compensation | ||||
Stock-based compensation | $ 7 | $ 8 | $ 14 | $ 16 |
Stock-Based Compensation - Ince
Stock-Based Compensation - Incentive Plans and Grants of Stock Awards (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2024 $ / 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) | 183 |
Employee Stock Option [Member] | CEO | Series C common stock | |
Stock Based Compensation | |
Options granted (in shares) | 183 |
Options grant date fair value | $ / shares | $ 20.18 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding Awards and Exercises (Details) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 30, 2024 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 | 4,300 |
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 8 months 12 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) | (150) |
Outstanding ending balance (in shares) | 96 |
WAEP | |
WAEP options forfeited/cancelled (in dollars per share) | $ / shares | $ 97.21 |
WAEP Outstanding ending balance (in dollars per share) | $ / shares | $ 94.05 |
Options additional disclosures | |
Weighted average remaining contractual life outstanding | 9 months 18 days |
Aggregate intrinsic value outstanding | $ | $ 0 |
Employee Stock Option [Member] | Series C common stock | |
Options | |
Outstanding beginning balance (in shares) | 4,063 |
Options granted (in shares) | 183 |
Outstanding ending balance (in shares) | 4,246 |
Number of awards exercisable (in shares) | 3,129 |
WAEP | |
WAEP Outstanding beginning balance (in dollars per share) | $ / shares | $ 96.23 |
WAEP Options granted (in dollars per share) | $ / shares | 56.20 |
WAEP Outstanding ending balance (in dollars per share) | $ / shares | 94.51 |
WAEP options exercisable (in dollars per share) | $ / shares | $ 88.30 |
Options additional disclosures | |
Weighted average remaining contractual life outstanding | 2 years 8 months 12 days |
Weighted average remaining contractual life exercisable | 1 year 10 months 24 days |
Aggregate intrinsic value outstanding | $ | $ 10 |
Aggregate intrinsic value exercisable | $ | $ 10 |
Employee Stock Option [Member] | CEO | Series C common stock | |
Options | |
Options granted (in shares) | 183 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Gross receivables | $ 166 | $ 166 | $ 181 | ||
Deferred revenue | 38 | 38 | 43 | ||
Revenue | 246 | $ 245 | 491 | $ 491 | |
Adjusted OIBDA | 80 | 87 | 165 | 169 | |
Total assets | 15,959 | 15,959 | $ 15,641 | ||
Investments in affiliates | 12,535 | 12,535 | |||
Capital expenditures | $ 123 | ||||
Charter | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Financial results included in the disclosure (as a percent) | 100% | ||||
Operating Segments and Corporate and Other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Adjusted OIBDA | 5,666 | 5,667 | $ 11,286 | 11,089 | |
Total assets | 164,570 | 164,570 | |||
Investments in affiliates | 12,535 | 12,535 | |||
Capital expenditures | 5,767 | ||||
Corporate and other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Adjusted OIBDA | (6) | (5) | (11) | (13) | |
Total assets | 12,665 | 12,665 | |||
Investments in affiliates | 12,535 | 12,535 | |||
Operating segments | GCI Holdings | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 246 | 245 | 491 | 491 | |
Adjusted OIBDA | 86 | 92 | 176 | 182 | |
Total assets | 3,294 | 3,294 | |||
Capital expenditures | 123 | ||||
Operating segments | GCI Holdings | Lease, grant, and revenue from subsidies | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 20 | 19 | 39 | 38 | |
Operating segments | GCI Holdings | Consumer Revenue | Data | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 60 | 59 | 120 | 118 | |
Operating segments | GCI Holdings | Consumer Revenue | Wireless | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 34 | 35 | 69 | 70 | |
Operating segments | GCI Holdings | Consumer Revenue | Other revenue | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 10 | 10 | 19 | 22 | |
Operating segments | GCI Holdings | Business Revenue | Data | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 108 | 106 | 215 | 211 | |
Operating segments | GCI Holdings | Business Revenue | Wireless | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 10 | 11 | 21 | 22 | |
Operating segments | GCI Holdings | Business Revenue | Other revenue | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 4 | 5 | 8 | 10 | |
Operating segments | Charter | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 13,685 | 13,659 | 27,364 | 27,312 | |
Adjusted OIBDA | 5,586 | 5,580 | 11,121 | 10,920 | |
Total assets | 148,611 | 148,611 | |||
Capital expenditures | 5,644 | ||||
Eliminate equity method affiliate | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Adjusted OIBDA | (5,586) | $ (5,580) | (11,121) | $ (10,920) | |
Total assets | $ (148,611) | (148,611) | |||
Capital expenditures | $ (5,644) |
Segment Information - Performan
Segment Information - Performance Obligations (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 231 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months |
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 | $ 358 |
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 | $ 203 |
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 | $ 96 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 30 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reconciliation of consolidated segment Adjusted OIBDA to earnings (loss) before income taxes | ||||
Adjusted OIBDA | $ 80 | $ 87 | $ 165 | $ 169 |
Stock-based compensation | (7) | (8) | (14) | (16) |
Depreciation and amortization | (52) | (56) | (102) | (114) |
Operating income (loss) | 21 | 23 | 49 | 39 |
Interest expense | (52) | (52) | (103) | (97) |
Share of earnings (loss) of affiliate, net | 297 | 318 | 577 | 566 |
Gain (loss) on dilution of investment in affiliate | (4) | (5) | (32) | (32) |
Realized and unrealized gains (losses) on financial instruments, net | (17) | 40 | 59 | (74) |
Other, net | 8 | 2 | 12 | 16 |
Earnings (loss) before income taxes | $ 253 | $ 326 | $ 562 | $ 418 |