Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Liberty Latin America Ltd. | |
Entity Central Index Key | 1,712,184 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Amendment Flag | false | |
Entity Filer Category | Non-accelerated Filer | |
Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 48,441,023 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,936,035 | |
Class C | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 120,859,778 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 510.6 | $ 529.9 |
Trade receivables, net of allowances of $142.4 million and $142.2 million, respectively | 581.2 | 556.5 |
Prepaid expenses | 64.8 | 65.5 |
Other current assets | 245.7 | 222.9 |
Total current assets | 1,402.3 | 1,374.8 |
Goodwill | 5,663.6 | 5,673.6 |
Property and equipment, net | 4,236.2 | 4,169.2 |
Intangible assets subject to amortization, net | 1,251.6 | 1,316.2 |
Intangible assets not subject to amortization | 565.9 | 565.4 |
Other assets, net | 579.4 | 517.7 |
Total assets | 13,699 | 13,616.9 |
Current liabilities: | ||
Accounts payable | 276.7 | 286.8 |
Deferred revenue | 159.3 | 143.4 |
Current portion of debt and capital lease obligations | 212.3 | 263.3 |
Accrued capital expenditures | 108.3 | 128.6 |
Accrued interest | 58.8 | 115.6 |
Accrued income taxes | 88.7 | 91.5 |
Other accrued and current liabilities | 691.2 | 557.7 |
Total current liabilities | 1,595.3 | 1,586.9 |
Long-term debt and capital lease obligations | 6,207.1 | 6,108.2 |
Deferred tax liabilities | 516.6 | 533.4 |
Other long-term liabilities | 783.1 | 697.8 |
Total liabilities | 9,102.1 | 8,926.3 |
Commitments and contingencies | ||
Liberty Latin America shareholders: | ||
Undesignated preference shares, $0.01 par value; 50,000,000 shares authorized; nil shares issued and outstanding at each period | 0 | 0 |
Additional paid-in capital | 4,397.5 | 4,402.8 |
Accumulated deficit | (1,066.3) | (1,010.7) |
Accumulated other comprehensive loss, net of taxes | (86.2) | (64.2) |
Total Liberty Latin America shareholders | 3,246.7 | 3,329.6 |
Noncontrolling interests | 1,350.2 | 1,361 |
Total equity | 4,596.9 | 4,690.6 |
Total liabilities and equity | 13,699 | 13,616.9 |
Class A, $0.01 par value; 500,000,000 shares authorized; 48,438,433 and 48,428,841 shares issued and outstanding, respectively | ||
Liberty Latin America shareholders: | ||
Common stock | 0.5 | 0.5 |
Class B, $0.01 par value; 50,000,000 shares authorized; 1,938,625 and 1,940,193 shares issued and outstanding, respectively | ||
Liberty Latin America shareholders: | ||
Common stock | 0 | 0 |
Class C, $0.01 par value; 500,000,000 shares authorized; 120,859,778 and 120,843,539 shares issued and outstanding, respectively | ||
Liberty Latin America shareholders: | ||
Common stock | $ 1.2 | $ 1.2 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Trade receivables, net allowance | $ 142.4 | $ 142.2 |
Preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 48,438,433 | 48,428,841 |
Common stock, shares outstanding (in shares) | 48,438,433 | 48,428,841 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 1,938,625 | 1,940,193 |
Common stock, shares outstanding (in shares) | 1,938,625 | 1,940,193 |
Class C | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 120,859,778 | 120,843,539 |
Common stock, shares outstanding (in shares) | 120,859,778 | 120,843,539 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 909.9 | $ 910.9 |
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below): | ||
Programming and other direct costs of services | 215.8 | 221.9 |
Other operating | 166.5 | 170.5 |
Selling, general and administrative (SG&A) | 193.3 | 176.4 |
Depreciation and amortization | 202.3 | 193.9 |
Impairment, restructuring and other operating items, net | 33.7 | 13.4 |
Operating costs and expenses (exclusive of depreciation and amortization) | 811.6 | 776.1 |
Operating income | 98.3 | 134.8 |
Non-operating income (expense): | ||
Interest expense | (102.5) | (94.3) |
Realized and unrealized losses on derivative instruments, net | (41.5) | (27.3) |
Foreign currency transaction gains, net | 15.9 | 14.5 |
Loss on debt modification and extinguishment | (13) | 0 |
Other income, net | 5.3 | 6 |
Non-operating income (expense) | (135.8) | (101.1) |
Earnings (loss) before income taxes | (37.5) | 33.7 |
Income tax expense | (16.8) | (23.1) |
Net earnings (loss) | (54.3) | 10.6 |
Net loss (earnings) attributable to noncontrolling interests | 9.8 | (16.4) |
Net loss attributable to Liberty Latin America shareholders | $ (44.5) | $ (5.8) |
Basic and diluted net earnings (loss) per share attributable to Liberty Latin America shareholders (in dollars per share) | $ (0.26) | $ (0.03) |
Condensed Comprehensive Stateme
Condensed Comprehensive Statements of Comprehensive (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ (54.3) | $ 10.6 |
Other comprehensive loss, net of taxes: | ||
Foreign currency translation adjustments | (31.8) | (10.6) |
Reclassification adjustments included in net earnings (loss) | 1.6 | 1 |
Pension-related adjustments and other, net | 0.9 | (3.5) |
Other comprehensive loss | (29.3) | (13.1) |
Comprehensive loss | (83.6) | (2.5) |
Comprehensive loss (earnings) attributable to noncontrolling interests | 10.3 | (15.9) |
Comprehensive loss attributable to Liberty Latin America shareholders | $ (73.3) | $ (18.4) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Equity (unaudited) - USD ($) $ in Millions | Total | Total Liberty Latin America shareholders | Common sharesClass A | Common sharesClass B | Common sharesClass C | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss, net of taxes | Non-controlling interests |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting change (note 2) | $ (7.5) | $ (11.1) | $ (11.1) | $ 3.6 | |||||
Balance at January 1, 2018, as adjusted for accounting change | 4,683.1 | 3,318.5 | $ 0.5 | $ 0 | $ 1.2 | $ 4,402.8 | (1,021.8) | $ (64.2) | 1,364.6 |
Balance at January 1, 2018, before effect of accounting change at Dec. 31, 2017 | 4,690.6 | 3,329.6 | 0.5 | 0 | 1.2 | 4,402.8 | (1,010.7) | (64.2) | 1,361 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings (loss) | (54.3) | (44.5) | (44.5) | (9.8) | |||||
Other comprehensive loss | (29.3) | (28.8) | (28.8) | (0.5) | |||||
C&W Jamaica NCI Acquisition | (20.1) | (5.2) | (12) | 6.8 | (14.9) | ||||
Capital contribution from noncontrolling interest owner | 10 | 10 | |||||||
Shared-based compensation | 7.4 | 7.4 | 7.4 | ||||||
Other | 0.1 | (0.7) | (0.7) | 0.8 | |||||
Balance at March 31, 2018 at Mar. 31, 2018 | $ 4,596.9 | $ 3,246.7 | $ 0.5 | $ 0 | $ 1.2 | $ 4,397.5 | $ (1,066.3) | $ (86.2) | $ 1,350.2 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (54.3) | $ 10.6 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Share-based compensation expense | 6.5 | 5.6 |
Depreciation and amortization | 202.3 | 193.9 |
Impairment, restructuring and other operating items, net | 33.7 | 13.4 |
Amortization of debt financing costs, premiums and discounts, net | (0.5) | (3.8) |
Realized and unrealized losses on derivative instruments, net | 41.5 | 27.3 |
Foreign currency transaction gains, net | (15.9) | (14.5) |
Loss on debt modification and extinguishment | 13 | 0 |
Deferred income tax benefit | (7.5) | (17.3) |
Changes in operating assets and liabilities, net of the effect of an acquisition | (55.6) | (140.2) |
Net cash provided by operating activities | 163.2 | 75 |
Cash flows from investing activities: | ||
Capital expenditures | (188.2) | (124.4) |
Other investing activities, net | 0.4 | (2.6) |
Net cash used by investing activities | (187.8) | (127) |
Cash flows from financing activities: | ||
Borrowings of debt | 190 | 136.5 |
Repayments of debt and capital lease obligations | (190.4) | (73.9) |
Distributions to noncontrolling interest owners | 0 | (14.6) |
Capital contribution from noncontrolling interest owner | 10 | 0 |
Distributions to Liberty Global | 0 | (18.8) |
Cash payment related to the C&W Jamaica NCI Acquisition | (18.6) | 0 |
Other financing activities, net | (2.8) | 5.3 |
Net cash provided (used) by financing activities | (11.8) | 34.5 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.1 | (0.5) |
Net decrease in cash, cash equivalents and restricted cash | (36.3) | (18) |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 568.2 | 580.8 |
End of period | 531.9 | 562.8 |
Cash paid for interest | 156.3 | 168.2 |
Net cash paid for taxes | $ 29.1 | $ 34.6 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation General Liberty Latin America Ltd. ( Liberty Latin America ) is a registered company in Bermuda that primarily includes (i) Cable & Wireless Communications Limited and its subsidiaries ( C&W ), (ii) VTR Finance B.V. ( VTR Finance ) and its subsidiaries, which includes VTR.com SpA ( VTR ), and (iii) LiLAC Communications Inc. and its subsidiaries, which includes Liberty Cablevision of Puerto Rico LLC ( Liberty Puerto Rico ), an entity in which Liberty Latin America owns a 60.0% interest. C&W owns less than 100% of certain of its consolidated subsidiaries, including Cable & Wireless Panama, SA ( C&W Panama ) (a 49.0% -owned entity that owns most of our operations in Panama), The Bahamas Telecommunications Company Limited (a 49.0% -owned entity that owns all of our operations in the Bahamas) and Cable & Wireless Jamaica Limited ( C&W Jamaica ) (a 91.7% -owned entity that owns the majority of our operations in Jamaica). The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ( U.S. GAAP ) and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by U.S. GAAP or Securities and Exchange Commission rules and regulations for complete financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our 2017 Annual Report on Form 10-K ( 2017 Form 10-K ). These condensed consolidated financial statements include the historical financial information of (i) Liberty Latin America and its consolidated subsidiaries for the period following the Split-Off , as defined below, and (ii) certain former subsidiaries of Liberty Global plc ( Liberty Global ) for periods prior to the Split-Off . Although Liberty Latin America was reported on a combined basis prior to the Split-Off, these financial statements present all prior periods as consolidated. In these notes, the terms “ we ,” “ our ,” “ our company ” and “ us ” may refer, as the context requires, to Liberty Latin America or collectively to Liberty Latin America and its subsidiaries. Unless otherwise indicated, ownership percentages and convenience translations into United States ( U.S. ) dollars are calculated as of March 31, 2018 . We are an international provider of video, broadband internet, fixed-line telephony and mobile services. We provide residential and business-to-business ( B2B ) services in (i) 18 countries, primarily in Latin America and the Caribbean, through C&W , (ii) Chile through VTR and (iii) Puerto Rico through Liberty Puerto Rico . C&W also provides (i) B2B communication services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its sub-sea and terrestrial fiber optic cable networks that connect over 40 markets in that region. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Split-off of Liberty Latin America from Liberty Global On December 29, 2017 , Liberty Global completed the split-off (the Split-Off ) of our company, which at such time was one of Liberty Global 's wholly-owned subsidiaries. In the Split-Off , 48,428,841 Class A common shares, 1,940,193 Class B common shares and 120,843,539 Class C common shares of Liberty Latin America (collectively Liberty Latin America Shares ) were issued. As a result of the Split-Off , Liberty Latin America became an independent, publicly traded company, and its assets and liabilities as of the time of the Split-Off consisted of the businesses, assets and liabilities that were formerly attributed to Liberty Global ’s “ LiLAC Group .” The Split-Off was accounted for at historical cost due to the pro rata distribution of Liberty Latin America Shares to holders of Liberty Global ’s LiLAC Shares , as defined below. Several agreements were entered into in connection with the Split-Off (the Split-Off Agreements ) between Liberty Latin America , Liberty Global and/or certain of their respective subsidiaries, including the Tax Sharing Agreement , the Reorganization Agreement , the Services Agreement , the Sublease Agreement and the Facilities Sharing Agreement , each as defined and described in note 11 . LiLAC Transaction On July 1, 2015, Liberty Global completed the “ LiLAC Transaction ,” pursuant to which each holder of Class A, Class B and Class C Liberty Global ordinary shares ( Liberty Global Shares ) received one share of the corresponding class of Liberty Global ’s LiLAC ordinary shares ( LiLAC Shares ) for each 20 Liberty Global Shares |
Accounting Changes and Recent A
Accounting Changes and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Recent Accounting Pronouncements | Accounting Changes and Recent Accounting Pronouncements Accounting Changes ASU 2014-09 In May 2014, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) No. 2014-09, Revenue from Contracts with Customers ( ASU 2014-09 ), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. We adopted ASU 2014-09 effective January 1, 2018 by recording the cumulative effect to the opening balance of our accumulated deficit. We applied the new standard to contracts that were not complete as of January 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The most significant impacts of ASU 2014-09 on our revenue recognition policies relate to our accounting for (i) long-term capacity contracts, (ii) subsidized handset plans and (iii) certain installation and other upfront fees, each as set forth below: • We enter into certain long-term capacity contracts with customers where the customer pays the transaction consideration at inception of the contract. Under previous accounting standards, we did not impute interest for advance payments from customers related to services that are provided over time. Under ASU 2014-09 , payment received from a customer significantly in advance of the provision of services is indicative of a financing component within the contract. If the financing component is significant, interest expense is accreted over the life of the contract with a corresponding increase to revenue. • ASU 2014-09 requires the identification of deliverables in contracts with customers that qualify as performance obligations. The transaction price consideration from customers is allocated to each performance obligation under the contract on the basis of relative standalone selling price. Under previous accounting standards, when we offered discounted equipment, such as handsets under a subsidized contract, upfront revenue recognition was limited to the upfront cash collected from the customer as the remaining monthly fees to be received from the customer, including fees associated with the equipment, were contingent upon delivering future airtime. This limitation is not applied under ASU 2014-09 . The primary impact on revenue reporting is that when we sell discounted equipment together with airtime services to customers, revenue allocated to equipment and recognized when control of the device passes to the customer will increase and revenue recognized as services are delivered will decrease. • When we enter into contracts to provide services to our customers, we often charge installation or other upfront fees. Under previous accounting standards, installation fees related to services provided over our fixed networks were recognized as revenue during the period in which the installation occurred to the extent those fees were equal to or less than direct selling costs. Under ASU 2014-09 , these fees are generally deferred and recognized as revenue over the contractual period for those contracts with substantive termination penalties, or for the period of time the upfront fees convey a material right for month-to-month contracts and contracts that do not include substantive termination penalties. ASU 2014-09 also impacted our accounting for certain upfront costs directly associated with obtaining and fulfilling customer contracts. Under our previous policy, these costs were expensed as incurred unless the costs were in the scope of other accounting standards that allowed for capitalization. Under ASU 2014-09 , the upfront costs associated with contracts that have substantive termination penalties and a term of longer than one year are recognized as assets and amortized to other operating expenses over the applicable period benefited. We implemented internal controls to ensure we adequately evaluated our contracts and properly assessed the impact of ASU 2014-09 on our condensed consolidated financial statements. We do not believe such new controls represent significant changes to our internal control over financial reporting. For information regarding changes to our accounting policies following the adoption of ASU 2014-09 and our contract assets and deferred revenue balances, see note 3 . The cumulative effect of the changes made to our condensed consolidated balance sheet as of January 1, 2018 is as follows: Balance at December 31, 2017 Cumulative catch up adjustments upon adoption Balance at January 1, 2018 in millions Assets: Other current assets $ 222.9 $ 15.8 $ 238.7 Other assets, net $ 517.7 $ 15.6 $ 533.3 Liabilities: Deferred revenue $ 143.4 $ 13.3 $ 156.7 Other long-term liabilities $ 697.8 $ 25.6 $ 723.4 Equity: Accumulated deficit $ (1,010.7 ) $ (11.1 ) $ (1,021.8 ) Noncontrolling interests $ 1,361.0 $ 3.6 $ 1,364.6 The impact of our adoption of ASU 2014-09 to our condensed consolidated statement of operations for the three months ended March 31, 2018 is as follows: Before adoption of ASU 2014-09 Impact of ASU 2014-09 Increase (decrease) As reported in millions Revenue $ 909.0 $ 0.9 $ 909.9 Operating costs and expenses – selling, general and administrative $ 193.6 $ (0.3 ) $ 193.3 Non-operating expense – interest expense $ 98.3 $ 4.2 $ 102.5 Income tax expense $ 17.3 $ (0.5 ) $ 16.8 Net loss $ 51.8 $ 2.5 $ 54.3 ASU 2016-18 In November 2016, the FASB issued ASU 2016-18 , Statement of Cash Flows-Restricted Cash ( ASU 2016-18 ), which addresses the presentation of restricted cash in the statement of cash flows. This ASU requires that the statement of cash flows explain the change in the beginning-of-period and end-of-period totals of cash, cash equivalents and restricted cash balances. We adopted ASU 2016-18 on January 1, 2018, which resulted in an increase (decrease) to our operating, financing and investing cash flows of ( $1 million ), $3 million , and $6 million , respectively, during the three months ended March 31, 2017 . At March 31, 2018 and December 31, 2017 , the balance of our restricted cash was $21 million and $38 million , respectively. ASU 2017-07 In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits—Improving the Presentation of the Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ( ASU 2017-07 ), which includes changes to the presentation of periodic benefit cost components. Under ASU 2017-07 , we will continue to present the service component of our net benefit cost as a component of operating income but present the other components of our net benefit cost computation, which can include credits, within non-operating income (expense) in our consolidated statements of operations. We adopted ASU 2017-07 on January 1, 2018. The change in presentation to our condensed consolidated statements of operations from ASU 2017-07 was applied on a retrospective basis. As a result of the adoption of ASU 2017-07 , we have presented $3 million of pension-related credits in other income, net in our condensed consolidated statements of operations for each of the three months ended March 31, 2018 and 2017 . Recent Accounting Pronouncements ASU 2016-02 In February 2016, the FASB issued ASU No. 2016-02, Leases ( ASU 2016-02 ), which, for most leases, will result in lessees recognizing lease assets and lease liabilities on the balance sheet with additional disclosures about leasing arrangements. ASU 2016-02 requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach and additional guidance provided by ASU 2018-01, Leases (Topic 842)—Land Easement Practical Expedient for Transition to Topic 842 , includes a number of optional practical expedients an entity may elect to apply. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We will adopt ASU 2016-02 on January 1, 2019. Although we are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements, the main impact of the adoption of this standard will be the recognition of lease assets and lease liabilities in our consolidated balance sheets for those leases classified as operating leases under previous U.S. GAAP . ASU 2016-02 |
Summary of Changes in Significa
Summary of Changes in Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Changes in Significant Accounting Policies | Summary of Changes in Significant Accounting Policies The following accounting policies reflect updates to our Summary of Significant Accounting Policies included in our 2017 Form 10-K as a result of the adoption of ASU 2014-09 . For additional information regarding the adoption of ASU 2014-09 , see note 2 . Contract Assets When we transfer goods or services to a customer but do not have an unconditional right to payment, we record a contract asset. Contract assets are reclassified to trade receivables, net in our consolidated balance sheet at the point in time we have the unconditional right to payment. Our contract assets were $12 million and $13 million as of March 31, 2018 and January 1, 2018, respectively. The change in our contract assets during the three months ended March 31, 2018 were not material. The current and long-term portion of contract assets are included in other current assets and other assets, net, respectively, in our condensed consolidated balance sheet. Deferred Contract Costs Incremental costs to obtain a contract with a customer, such as incremental sales commissions, are recognized as an asset and amortized to SG&A expenses over the applicable period benefited, which is the longer of the contract life or the economic life of the commission. If, however, the amortization period is one year or less, we expense such costs in the period incurred. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred. Our deferred contract costs were $10 million and $9 million as of March 31, 2018 and January 1, 2018, respectively. The change in our contract assets during the three months ended March 31, 2018 were not material. The current and long-term portion of deferred contract costs are included in other current assets and other assets, net, respectively, in our condensed consolidated balance sheet. Deferred Revenue We record deferred revenue when we have received payment prior to transferring goods or services to a customer. Deferred revenue primarily relates to (i) advanced payments on fixed subscription services and mobile airtime services and (ii) deferred installation and other upfront fees. Our aggregate current and long-term deferred revenue as of March 31, 2018 and December 31, 2017, was $417 million and $397 million , respectively. Long-term deferred revenue is included in other long-term liabilities in our condensed consolidated balance sheets. We recorded an aggregate of $19 million of current and long-term deferred revenue on January 1, 2018 upon the adoption of ASU 2014-09 . The remaining change in the current portion and long-term deferred revenue balances during the three months ended March 31, 2018 were not material. Revenue Recognition General . Most of our fixed and mobile residential contracts are not enforceable or do not contain substantive early termination penalties. Accordingly, revenue relating to these customers is recognized on a basis consistent with these customers that are not subject to contracts. Subscription Revenue – Fixed Networks. We recognize revenue from video, broadband internet and fixed-line telephony services over our fixed networks to customers in the period the related subscription services are provided. Installation or other upfront fees related to services provided over our fixed networks are generally deferred and recognized as subscription revenue over the contractual period, or longer if the upfront fee results in a material renewal right. We may also sell video, broadband internet and fixed-line telephony services to our customers in bundled packages at a rate lower than if the customer purchased each product on a standalone basis. Arrangement consideration from bundled packages generally is allocated proportionally to the individual service based on the relative standalone price for each respective product or service. Mobile Revenue – General. Consideration from mobile contracts is allocated to airtime services and handset sales based on the relative standalone prices of each performance obligation. Mobile Revenue – Airtime Services. We recognize revenue from mobile services in the period the related services are provided. Payments received from prepay customers are recorded as deferred revenue prior to the commencement of services and are recognized as revenue as the services are rendered or usage rights expire. Mobile Revenue – Handset Revenue. Arrangement consideration allocated to handsets is recognized as revenue when the goods have been transferred to the customer. B2B Revenue – Installation Revenue. We defer upfront installation and certain nonrecurring fees received on B2B contracts where we maintain ownership of the installed equipment. The deferred fees are amortized into revenue on a straight-line basis over the term of the arrangement or the expected period of performance. Sub-sea Network Revenue – Long-term Capacity Contracts. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Pending Acquisition Cabletica . On February 12, 2018, we entered into a definitive agreement to acquire 80% of Costa Rican cable operator, “ Cabletica ,” which is part of Televisora de Costa Rica S.A. in an all cash transaction. In the transaction, Cabletica was valued at an enterprise value in Costa Rican Colon ( CRC ) of CRC 143 billion ( $252 million ). We intend to finance the acquisition of the 80% equity stake in Cabletica through a combination of incremental debt and existing liquidity. The current owners of Cabletica will retain the remaining 20% interest. The transaction is subject to customary closing adjustments and conditions, including regulatory approvals, and is expected to close during the second half of 2018. 2017 Acquisition Carve-out Entities. On May 16, 2016, Liberty Global acquired C&W (the C&W Acquisition ), which was contributed to our company as part of the Split-Off. In connection with the C&W Acquisition and C&W ’s acquisition of Columbus International Inc. and its subsidiaries in 2015 (the Columbus Acquisition ), certain entities (the Carve-out Entities ) that hold licenses granted by the U.S. Federal Communications Commission (the FCC ) were transferred to entities not controlled by C&W (collectively, New Cayman ).The arrangements with respect to the Carve-out Entities , which were executed in connection with the Columbus Acquisition and the C&W Acquisition , contemplated that upon receipt of regulatory approval, we would acquire the Carve-out Entities . On March 8, 2017, the FCC granted its approval for Liberty Global ’s acquisition of the Carve-out Entities . Accordingly, on April 1, 2017 , subsidiaries of C&W acquired the Carve-out Entities (the C&W Carve-out Acquisition ) for an aggregate purchase price of $86 million , which represents the amount due under notes receivable that were exchanged for the equity of the Carve-out Entities |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments In general, we seek to enter into derivative instruments to protect against (i) increases in the interest rates on our variable-rate debt and (ii) foreign currency movements, particularly with respect to borrowings that are denominated in a currency other than the functional currency of the borrowing entity. In this regard, through our subsidiaries, we have entered into various derivative instruments to manage interest rate exposure and foreign currency exposure with respect to the U.S. dollar ( $ ), the British pound sterling ( £ ), the Chilean peso ( CLP ), the Jamaican dollar ( JMD ) and the Colombian peso ( COP ). With the exception of certain foreign currency forward contracts, we do not apply hedge accounting to our derivative instruments. Accordingly, changes in the fair values of most of our derivative instruments are recorded in realized and unrealized gains or losses on derivative instruments in our condensed consolidated statements of operations. The following table provides details of the fair values of our derivative instrument assets and liabilities: March 31, 2018 December 31, 2017 Current (a) Long-term (a) Total Current (a) Long-term (a) Total in millions Assets: Cross-currency and interest rate derivative contracts (b) $ 16.5 $ 100.6 $ 117.1 $ 2.9 $ 38.4 $ 41.3 Foreign currency forward contracts — 0.4 0.4 — — — Total $ 16.5 $ 101.0 $ 117.5 $ 2.9 $ 38.4 $ 41.3 Liabilities: Cross-currency and interest rate derivative contracts (b) $ 62.1 $ 125.2 $ 187.3 $ 29.4 $ 51.9 $ 81.3 Foreign currency forward contracts 13.4 — 13.4 12.8 — 12.8 Total $ 75.5 $ 125.2 $ 200.7 $ 42.2 $ 51.9 $ 94.1 (a) Our current derivative assets, current derivative liabilities, long-term derivative assets and long-term derivative liabilities are included in other current assets, other accrued and current liabilities, other assets, net, and other long-term liabilities, respectively, in our condensed consolidated balance sheets. (b) We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 8 ). The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in a net gain (loss) of ( $12 million ) and $7 million during the three months ended March 31, 2018 and 2017 , respectively. These amounts are included in realized and unrealized losses on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 6 . The details of our realized and unrealized losses on derivative instruments, net, are as follows: Three months ended March 31, 2018 2017 in millions Cross-currency and interest rate derivative contracts $ (38.9 ) $ (25.5 ) Foreign currency forward contracts (2.6 ) (1.8 ) Total $ (41.5 ) $ (27.3 ) The following table sets forth the classification of the net cash outflows of our derivative instruments: Three months ended March 31, 2018 2017 in millions Operating activities $ (11.7 ) $ (10.7 ) Investing activities (1.7 ) (1.2 ) Total $ (13.4 ) $ (11.9 ) Counterparty Credit Risk We are exposed to the risk that the counterparties to the derivative instruments of our borrowing groups will default on their obligations to us. We manage these credit risks through the evaluation and monitoring of the creditworthiness of, and concentration of risk with, the respective counterparties. In this regard, credit risk associated with our derivative instruments is spread across a relatively broad counterparty base of banks and financial institutions. Collateral has not been posted by either party under the derivative instruments of our borrowing groups. At March 31, 2018 , our exposure to counterparty credit risk included derivative assets with an aggregate fair value of $54 million . Each of our borrowing groups has entered into derivative instruments under agreements with each counterparty that contain master netting arrangements that are applicable in the event of early termination by either party to such derivative instrument. The master netting arrangements under each of these master agreements are limited to the derivative instruments governed by the relevant master agreement within each individual borrowing group and are independent of similar arrangements of our other subsidiary borrowing groups. Details of our Derivative Instruments Cross-currency Derivative Contracts As noted above, we are exposed to foreign currency exchange rate risk in situations where our debt is denominated in a currency other than the functional currency of the operations whose cash flows support our ability to repay or refinance such debt. Although we generally seek to match the denomination of our subsidiaries’ borrowings with the functional currency of the operations that are supporting the respective borrowings, market conditions or other factors may cause us to enter into borrowing arrangements that are not denominated in the functional currency of the underlying operations (unmatched debt). Our policy is generally to provide for an economic hedge against foreign currency exchange rate movements, whenever possible and when cost effective to do so, by using derivative instruments to synthetically convert unmatched debt into the applicable underlying currency. The following table sets forth the total notional amounts and the related weighted average remaining contractual lives of our cross-currency swap contracts at March 31, 2018 : Borrowing group Notional amount due from counterparty Notional amount due to counterparty Weighted average remaining life in millions in years C&W $ 108.3 JMD 13,817.5 4.8 $ 35.4 COP 106,000.0 4.3 £ 146.7 $ 194.3 1.0 VTR Finance $ 1,400.0 CLP 951,390.0 4.2 Interest Rate Derivative Contracts As noted above, we enter into interest rate swaps to protect against increases in the interest rates on our variable-rate debt. Pursuant to these derivative instruments, we typically pay fixed interest rates and receive variable interest rates on specified notional amounts. The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our interest rate swap contracts at March 31, 2018 : Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W (a) $ 2,975.0 6.1 Liberty Puerto Rico $ 675.0 3.0 (a) Includes forward-starting derivative instruments. Basis Swaps Basis swaps involve the exchange of attributes used to calculate our floating interest rates, including (i) the benchmark rate, (ii) the underlying currency and/or (iii) the borrowing period. We typically enter into these swaps to optimize our interest rate profile based on our current evaluations of yield curves, our risk management policies and other factors. At March 31, 2018 , the U.S. dollar equivalent of the notional amounts of these derivative instruments was $3,750 million and the related weighted average remaining contractual life of our basis swap contracts was 1.2 years. At March 31, 2018 , our basis swaps were all held by subsidiaries of our C&W borrowing group. Interest Rate Caps We enter into interest rate cap agreements that lock in a maximum interest rate if variable rates rise, but also allow our company to benefit from declines in market rates. At March 31, 2018 , the total U.S. dollar notional amounts of our interest rate caps was $436 million , all of which are held by Liberty Puerto Rico . Impact of Derivative Instruments on Borrowing Costs The weighted average impact of the derivative instruments, excluding forward-starting derivative instruments, on our borrowing costs at March 31, 2018 was as follows: Borrowing group Increase (decrease) to borrowing costs C&W 0.43 % VTR Finance (0.52 )% Liberty Puerto Rico 0.44 % Liberty Latin America borrowing groups 0.22 % Foreign Currency Forwards We enter into foreign currency forward contracts with respect to non-functional currency exposure. As of March 31, 2018 , the total U.S. dollar equivalent of the notional amount of foreign currency forward contracts was $228 million , all of which are held by subsidiaries of our VTR |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use the fair value method to account for our derivative instruments and the available-for-sale method to account for our investment in the United Kingdom ( U.K. ) Government Gilts. The reported fair values of our derivative instruments as of March 31, 2018 likely will not represent the value that will be paid or received upon the ultimate settlement or disposition of these assets and liabilities, as we expect that the values realized generally will be based on market conditions at the time of settlement, which may occur at the maturity of the derivative instrument or at the time of the repayment or refinancing of the underlying debt instrument. U.S. GAAP provides for a fair value hierarchy that prioritizes the 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. We record transfers of assets or liabilities into or out of Levels 1, 2 or 3 at the beginning of the quarter during which the transfer occurred. During the three months ended March 31, 2018 , no such transfers were made. In order to manage our interest rate and foreign currency exchange risk, we have entered into various derivative instruments, as further described in note 5 . The recurring fair value measurements of these derivative instruments are determined using discounted cash flow models. Most of the inputs to these discounted cash flow models consist of, or are derived from, observable Level 2 data for substantially the full term of these derivative instruments. This observable data mostly includes interest rate futures and swap rates, which are retrieved or derived from available market data. Although we may extrapolate or interpolate this data, we do not otherwise alter this data in performing our valuations. We incorporate a credit risk valuation adjustment in our fair value measurements to estimate the impact of both our own nonperformance risk and the nonperformance risk of our counterparties. Our and our counterparties’ credit spreads represent our most significant Level 3 inputs, and these inputs are used to derive the credit risk valuation adjustments with respect to these instruments. As we would not expect changes in our or our counterparties’ credit spreads to have a significant impact on the valuations of these instruments, we have determined that these valuations fall under Level 2 of the fair value hierarchy. Due to the lack of Level 2 inputs for the valuation of the U.S dollar to the Jamaican dollar cross-currency swaps (the Sable Currency Swaps ) held by a subsidiary of C&W , we believe this valuation falls under Level 3 of the fair value hierarchy. The Sable Currency Swaps are our only Level 3 financial instruments. The fair values of the Sable Currency Swaps at March 31, 2018 and December 31, 2017 were $27 million and $22 million , respectively, which are included in other long-term liabilities in our condensed consolidated balance sheets. The change in the fair values of the Sable Currency Swaps resulted in net losses of $5 million and $4 million during the three months ended March 31, 2018 and 2017 , respectively, which are reflected in realized and unrealized losses on derivative instruments, net, in our condensed consolidated statements of operations. Our credit risk valuation adjustments with respect to our cross-currency and interest rate swaps are quantified and further explained in note 5 . Our investment in the U.K. Government Gilts falls under Level 1 of the fair value hierarchy. At March 31, 2018 and December 31, 2017 , the carrying values of our investment in the U.K. Government Gilts, which are included in other assets, net, in our condensed consolidated balance sheets, was $33 million and $37 million |
Long-lived Assets
Long-lived Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Long-lived Assets | Long-lived Assets Goodwill Changes in the carrying amount of our goodwill during the three months ended March 31, 2018 are set forth below: January 1, Foreign currency translation adjustments March 31, in millions C&W $ 4,962.5 $ (18.3 ) $ 4,944.2 VTR 433.4 8.3 441.7 Liberty Puerto Rico 277.7 — 277.7 Total $ 5,673.6 $ (10.0 ) $ 5,663.6 Based on the results of our October 1, 2017 goodwill impairment test, a hypothetical decline of 20% or more in the fair value of C&W reporting units that carry a goodwill balance or the Liberty Puerto Rico reporting unit could result in the need to record additional goodwill impairment charges. If, among other factors, (i) our equity values were to decline significantly or (ii) the adverse impacts of economic, competitive, regulatory or other factors, including macro-economic and demographic trends, were to cause C&W ’s or Liberty Puerto Rico ’s results of operations or cash flows to be worse than anticipated, we could conclude in future periods that additional impairment charges are required in order to reduce the carrying values of the goodwill, cable television franchise rights and, to a lesser extent, other long-lived assets of these entities. Property and Equipment, Net The details of our property and equipment and the related accumulated depreciation are set forth below: March 31, December 31, in millions Distribution systems $ 4,047.2 $ 3,878.4 Customer premises equipment 1,438.8 1,382.8 Support equipment, buildings and land 1,338.6 1,306.3 6,824.6 6,567.5 Accumulated depreciation (2,588.4 ) (2,398.3 ) Total $ 4,236.2 $ 4,169.2 During the three months ended March 31, 2018 and 2017 , we recorded non-cash increases to our property and equipment related to vendor financing arrangements aggregating $21 million and $14 million , respectively. Intangible Assets Subject to Amortization, Net The details of our intangible assets subject to amortization are set forth below: March 31, December 31, in millions Gross carrying amount: Customer relationships $ 1,459.3 $ 1,415.1 Licenses and other 184.2 199.8 Total gross carrying amount 1,643.5 1,614.9 Accumulated amortization: Customer relationships (374.6 ) (284.2 ) Licenses and other (17.3 ) (14.5 ) Total accumulated amortization (391.9 ) (298.7 ) Net carrying amount $ 1,251.6 $ 1,316.2 |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 3 Months Ended |
Mar. 31, 2018 | |
Debt and Capital Lease Obligations [Abstract] | |
Debt and Capital Lease Obligations | Debt and Capital Lease Obligations The U.S. dollar equivalents of the components of our debt are as follows: March 31, 2018 Estimated fair value (c) Principal Amount Weighted Unused borrowing capacity (b) Borrowing currency US $ equivalent March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 in millions C&W Credit Facilities 4.95 % $ 746.5 $ 746.5 $ 2,243.7 $ 2,216.4 $ 2,235.9 $ 2,212.2 C&W Notes 7.09 % — — 1,712.3 1,749.7 1,655.9 1,648.4 VTR Finance Senior Secured Notes 6.88 % — — 1,452.3 1,479.6 1,400.0 1,400.0 VTR Credit Facility — % (d) 232.9 — — — — LPR Bank Facility 5.52 % — — 951.1 951.8 982.5 982.5 Vendor financing (e) 4.43 % — — 149.1 137.4 149.1 137.4 Total debt before premiums, discounts and deferred financing costs 6.00 % $ 979.4 $ 6,508.5 $ 6,534.9 $ 6,423.4 $ 6,380.5 The following table provides a reconciliation of total debt before premiums, discounts and deferred financing costs to total debt and capital lease obligations: March 31, 2018 December 31, 2017 in millions Total debt before premiums, discounts and deferred financing costs $ 6,423.4 $ 6,380.5 Premiums, discounts and deferred financing costs, net (20.8 ) (26.5 ) Total carrying amount of debt 6,402.6 6,354.0 Capital lease obligations 16.8 17.5 Total debt and capital lease obligations 6,419.4 6,371.5 Less: Current maturities of debt and capital lease obligations (212.3 ) (263.3 ) Long-term debt and capital lease obligations $ 6,207.1 $ 6,108.2 (a) Represents the weighted average interest rate in effect at March 31, 2018 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. Including the effects of derivative instruments, original issue premiums or discounts and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 6.30% at March 31, 2018 . For information regarding our derivative instruments, see note 5 . (b) Unused borrowing capacity represents the maximum availability under the applicable facility at March 31, 2018 without regard to covenant compliance calculations or other conditions precedent to borrowing. At March 31, 2018 , the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after consideration of the completion of the March 31, 2018 compliance reporting requirements, which include leverage-based payment tests and leverage covenants. At March 31, 2018 , there were no restrictions on the respective subsidiary’s ability to make loans or distributions from this availability to Liberty Latin America or its subsidiaries or other equity holders. (c) The estimated fair values of our debt instruments are determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy). The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors. For additional information regarding fair value hierarchies, see note 6 . (d) The VTR Credit Facility is the senior secured credit facility of VTR and certain of its subsidiaries and comprises a $160 million facility (the VTR Dollar Credit Facility ) and a CLP 44 billion ( $73 million ) facility (the VTR Peso Credit Facility ), each of which were undrawn at March 31, 2018 . (e) Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our property and equipment additions and, to a lesser extent, certain of our operating expenses. These obligations are generally due within one year and include value-added taxes ( VAT ) that were paid on our behalf by the vendor. Our operating expenses for the three months ended March 31, 2018 and 2017 include $32 million and $10 million , respectively, that were financed by an intermediary and are reflected as a hypothetical cash outflow within net cash provided by operating activities and a hypothetical cash inflow within net cash provided by financing activities in our condensed consolidated statements of cash flows. Repayments of vendor financing obligations are included in repayments of debt and capital lease obligations in our condensed consolidated statements of cash flows. 2018 Financing Transactions On January 6, 2018, C&W Panama issued $100 million of subordinated debt. The term loan bears interest at 4.35% , payable on a quarterly basis, and matures in January 2023. The proceeds from the term loan were primarily used to repay existing C&W Panama debt. On February 7, 2018 , C&W entered into a $1,875 million principal amount term loan facility (the C&W Term Loan B-4 Facility ) at the London Interbank Offered Rate ( LIBOR ) plus 3.25% , subject to a LIBOR floor of 0.0% . The C&W Term Loan B-4 Facility was issued at 99.875% of par with a maturity date of January 31, 2026 . General terms associated with the C&W Term Loan B-4 Facility are substantially the same as those included in “ General Information ” in note 9 to our 2017 Form 10-K . The net proceeds of the C&W Term Loan B-4 Facility were used to repay in full the $1,825 million outstanding principal amount of the C&W Term Loan B-3 Facility and repay $40 million drawn under the C&W Revolving Credit Facility . The exchange in principal amounts of $1,825 million was treated as a non-cash transaction in our condensed consolidated statement of cash flows. In connection with this transaction, C&W recognized a loss on debt modification and extinguishment of $13 million , which represents the write-off of unamortized discounts and deferred financing costs. On March 7, 2018, we amended and restated the credit agreement originally dated May 16, 2016, as amended and restated as of May 26, 2017, providing for the additional C&W Term Loan B-4 Facility and a $625 million revolving credit facility (the C&W Revolving Credit Facility ). The details of our borrowings under the C&W Credit Facilities as of March 31, 2018 are summarized in the following table: C&W Credit Facilities Maturity Interest rate Facility amount (in borrowing currency) Outstanding principal amount Unused borrowing capacity Carrying value (a) in millions C&W Term Loan B-4 Facility January 31, 2026 LIBOR + 3.25% $ 1,875.0 $ 1,875.0 $ — $ 1,869.2 C&W Revolving Credit Facility June 30, 2023 LIBOR + 3.25% $ 625.0 10.0 615.0 10.0 C&W Regional Facilities various dates ranging from 2018 to 2038 4.00% (b) $ 482.4 350.9 131.5 349.9 Total $ 2,235.9 $ 746.5 $ 2,229.1 (a) Amounts are net of discounts and deferred financing costs, where applicable. (b) Represents a weighted average rate for all C&W Regional Facilities . Maturities of Debt and Capital Lease Obligations Maturities of our debt and capital lease obligations as of March 31, 2018 are presented below. Amounts presented below represent U.S. dollar equivalents based on March 31, 2018 exchange rates: Debt: C&W VTR Liberty Puerto Rico Consolidated in millions Years ending December 31: 2018 (remainder of year) $ 94.6 $ 78.6 $ — $ 173.2 2019 234.9 22.9 — 257.8 2020 24.9 — 40.0 64.9 2021 125.0 — — 125.0 2022 765.2 — 850.0 1,615.2 2023 113.8 — 92.5 206.3 Thereafter 2,581.0 1,400.0 — 3,981.0 Total debt maturities 3,939.4 1,501.5 982.5 6,423.4 Premiums, discounts and deferred financing costs, net 11.2 (21.3 ) (10.7 ) (20.8 ) Total debt $ 3,950.6 $ 1,480.2 $ 971.8 $ 6,402.6 Current portion $ 98.6 $ 101.6 $ — $ 200.2 Noncurrent portion $ 3,852.0 $ 1,378.6 $ 971.8 $ 6,202.4 Capital lease obligations: C&W VTR Liberty Puerto Rico Consolidated in millions Year ending December 31: 2018 (remainder of year) $ 12.1 $ 0.2 $ — $ 12.3 2019 3.1 0.4 — 3.5 2020 1.4 0.1 — 1.5 2021 0.1 — — 0.1 Total principal and interest payments 16.7 0.7 — 17.4 Amounts representing interest (0.6 ) — — (0.6 ) Present value of net minimum lease payments $ 16.1 $ 0.7 $ — $ 16.8 Current portion $ 11.8 $ 0.3 $ — $ 12.1 Noncurrent portion $ 4.3 $ 0.4 $ — $ 4.7 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We evaluate and update our estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. For interim tax reporting, we estimate an annual effective tax rate which is applied to year-to-date ordinary income or loss. The tax effect of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Our interim estimate of our annual effective tax rate and our interim tax provision are subject to volatility due to factors such as jurisdictions in which our deferred taxes and/or tax attributes are subject to a full valuation allowance, relative changes in unrecognized tax benefits and changes in tax laws. Based upon the mix and timing of our actual annual earnings or loss compared to annual projections, as well as changes in the factors noted above, our effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. Income tax expense was approximately $17 million and $23 million during the three months ended March 31, 2018 and 2017 , respectively. This represents an effective income tax rate of (44.8)% and 68.5% for the three months ended March 31, 2018 and 2017 , respectively, including items treated discretely. For the three months ended March 31, 2018 , the income tax expense attributable to our loss before income taxes differs from the amount computed using the statutory tax rate primarily due to the detrimental effects of international rate differences, increases in the valuation allowance, and negative effects of non-deductible expenses. These negative impacts to our effective tax rate were partially offset by the beneficial effects of non-taxable income and price level restatements. For the three months ended March 31, 2017 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Equity | Equity In December 2017, in connection with challenging circumstances that Liberty Puerto Rico experienced as a result of the damage caused by hurricanes during September 2017, in particular Hurricane Maria, the LPR Credit Agreements were amended to provide for, among other things, an equity commitment of up to $60 million (the LCPR Equity Commitment ) from Liberty Puerto Rico ’s shareholders through December 31, 2018 to fund potential liquidity shortfalls. Based on our 60% ownership in Liberty Puerto Rico , we are obligated for up to $36 million of the LCPR Equity Commitment . During the first quarter of 2018, a $25 million capital contribution was provided to Liberty Puerto Rico consisting of $15 million from us and $10 million from investment funds affiliated with Searchlight Capital Partners, L.P. ( Searchlight ). The capital contribution from Searchlight is included in our condensed consolidated statement of equity as an increase to noncontrolling interests. Subsequent to March 31, 2018 , an additional $20 million was contributed to Liberty Puerto Rico , consisting of $12 million from us and $8 million from Searchlight . Accordingly, Liberty Puerto Rico has up to an additional $15 million available under the LCPR Equity Commitment , of which we are obligated for up to $9 million . During the first quarter of 2018, we increased our ownership in C&W Jamaica from 82.0% to 91.7% by acquiring 1,629,734,373 of the issued and outstanding ordinary stock units of C&W Jamaica that we did not already own (the C&W Jamaica NCI Acquisition ) for JMD $1.45 per share or JMD $2,363 million ( $19 million ) of paid consideration. In connection with the C&W Jamaica NCI Acquisition , we incurred approximately $1 million |
Related-party Transactions
Related-party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-party Transactions | Related-party Transactions Prior to the consummation of the Split-Off , certain Liberty Global subsidiaries charged fees and allocated costs and expenses to our company, as further described below. Upon completion of the Split-Off , certain fees and allocated costs and expenses have been replaced by fees pursuant to the Split-Off Agreements , as further described below. The following table provides details of our significant related-party balances: March 31, 2018 December 31, 2017 in millions Assets: Current assets – related-party receivables (a) $ 3.8 $ 4.2 Income tax receivable (b) 3.8 — Total assets $ 7.6 $ 4.2 Liabilities – accounts payable and other accrued and current liabilities (c) $ 5.3 $ 1.4 (a) Represents non-interest bearing receivables due from certain Liberty Global subsidiaries. (b) This amount represents the benefit of related-party tax allocations, which arise from the estimated utilization of certain net operating losses of Liberty Latin America that are included in Liberty Global ’s U.S. consolidated income tax filing for the period preceding the Split-Off . (c) Represents non-interest bearing payables to certain Liberty Global subsidiaries. Split-Off Agreements In connection with the Split-Off , Liberty Latin America , Liberty Global and/or certain of their respective subsidiaries entered into the Split-Off Agreements . For the three months ended March 31, 2018 , we incurred $2 million of charges associated with these agreements. The following summarizes the material agreements: • a reorganization agreement, (the Reorganization Agreement ), which provides for, among other things, the principal corporate transactions (including the internal restructuring) required to effect the Split-Off , certain conditions to the Split-Off and provisions governing the relationship between Liberty Global and Liberty Latin America with respect to and resulting from the Split-Off ; • a services agreement (the Services Agreement ), pursuant to which, for up to two years following the Split-Off with the option to renew for a one-year period, Liberty Global will provide Liberty Latin America with specified services, including access to Liberty Global ’s procurement team and tools to leverage scale and take advantage of joint purchasing opportunities, certain management services, other services to support Liberty Latin America ’s legal, tax, accounting and finance departments, and certain technical and information technology services (including software development services associated with the Horizon platform, management information systems, computer, data storage, and network and telecommunications services); • a sublease agreement (the Sublease Agreement ), pursuant to which Liberty Latin America will sublease office space from Liberty Global in Denver, Colorado until May 31, 2031, subject to customary termination and notice provisions; • a facilities sharing agreement (the Facilities Sharing Agreement ), pursuant to which, for as long as the Sublease Agreement remains in effect, Liberty Latin America will pay a fee for the usage of certain facilities at the office space in Denver, Colorado; and • a tax sharing agreement (the Tax Sharing Agreement ), which governs the parties’ respective rights, responsibilities and obligations with respect to taxes and tax benefits, the filing of tax returns, the control of audits and other tax matters. Related-Party Charges Prior to the Split-Off Our related-party transactions prior to the Split-Off for the three months ended March 31, 2017 are as follows (in millions): Revenue $ 4.0 Allocated share-based compensation expense (3.3 ) Charges from Liberty Global (3.0 ) Included in operating income (2.3 ) Interest income 1.5 Allocated tax expense (1.8 ) Included in net loss $ (2.6 ) Revenue. Amount primarily represents revenue from the Carve-out Entities for (i) management services C&W provided to the Carve-out Entities to operate and manage their business under a management services agreement and (ii) products and services that C&W provided to the Carve-out Entities in the normal course of business. The services that we provided to the Carve-out Entities were provided at the direction of, and subject to the ultimate control and oversight of, the Carve-out Entities . As discussed in note 4 , C&W acquired the Carve-out Entities on April 1, 2017. Allocated share-based compensation expense . Amount represents share-based compensation that Liberty Global allocated to us with respect to share-based incentive awards held by our employees. Charges from Liberty Global . Following the LiLAC Transaction , Liberty Global began to allocate a portion of the costs of their corporate functions, excluding share-based compensation expense, to us based primarily on the estimated percentage of time spent by corporate personnel providing services to us. Effective January 1, 2017, the annual allocation was $12 million . The allocated costs, which were cash settled, are included in SG&A expenses in our condensed consolidated statement of operations. Although we believe the allocated costs are reasonable, no assurance can be given that such costs are reflective of the costs we would have incurred as a standalone company. Upon consummation of the Split-Off , Liberty Global no longer allocates costs to us and instead we prospectively incur certain charges under certain of the Split-Off Agreements described above. Interest income. Amount includes interest income on C&W ’s related-party loans receivable from New Cayman , which bore interest at 8.0% per annum. On April 1, 2017, subsidiaries of C&W acquired the Carve-out Entities , at which time these loans receivable were settled in exchange for the equity of the Carve-out Entities . Related-party interest income is included in other income, net, in our condensed consolidated statement of operations. For additional information regarding the Carve-out Entities , see note 4 . Tax allocations. Amount represents related-party income tax allocations recognized prior to the Split-Off . See above for additional information regarding the Tax Sharing Agreement with Liberty Global that became effective upon the consummation of the Split-Off |
Restructuring Liabilities
Restructuring Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Liabilities | Restructuring Liabilities A summary of changes in our restructuring liabilities during the three months ended March 31, 2018 is set forth in the table below: Employee severance and termination Contract termination and other Total in millions Restructuring liability as of January 1, 2018 $ 6.2 $ 25.4 $ 31.6 Restructuring charges 24.1 1.6 25.7 Cash paid (5.5 ) (1.3 ) (6.8 ) Foreign currency translation adjustments — 0.4 0.4 Restructuring liability as of March 31, 2018 $ 24.8 $ 26.1 $ 50.9 Current portion $ 24.3 $ 12.4 $ 36.7 Noncurrent portion 0.5 13.7 14.2 Total $ 24.8 $ 26.1 $ 50.9 Our restructuring charges during the three months ended March 31, 2018 primarily relate to employee severance and termination costs associated with reorganization programs at C&W |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation The following table summarizes our share-based compensation expense: Three months ended March 31, 2018 2017 in millions Included in: Other operating expense $ 0.1 $ 0.5 SG&A expense 6.4 5.1 Total $ 6.5 $ 5.6 Share-based Incentive Awards The following tables summarize the share-based incentive awards related to Liberty Latin America shares as of March 31, 2018 : Number of Weighted average base price Weighted average remaining contractual term Share-based incentive award type in years Stock appreciation rights ( SARs ): Class A common shares: Outstanding 1,274,964 $ 26.50 5.7 Exercisable 336,956 $ 30.95 4.5 Class C common shares: Outstanding 2,603,506 $ 26.84 5.6 Exercisable 737,051 $ 31.17 4.3 Number of Weighted average remaining contractual term Share-based incentive award type in years Restricted stock units ( RSUs ) outstanding: Class A common shares 139,657 2.4 Class C common shares 288,522 2.3 Performance-based restricted stock units ( PSUs ) outstanding : Class A common shares 173,849 1.5 Class C common shares 340,291 1.5 During the three months ended March 31, 2018 , we granted SARs with respect to 594,267 Class A common shares and 1,188,533 Class C common shares, which have base prices of $21.58 and $21.39 |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic earnings (loss) per share ( EPS ) is computed by dividing net earnings (loss) attributable to Liberty Latin America shareholders by the weighted average number of Liberty Latin America Shares or LiLAC Shares outstanding during the periods presented, as further described below. Diluted EPS presents the dilutive effect, if any, on a per share basis of potential shares (e.g., SARs and RSUs ) as if they had been exercised or vested at the beginning of the periods presented. Three months ended March 31, 2018 (a) 2017 (b) Weighted average shares outstanding - basic and dilutive 171,231,111 172,743,854 (a) Represents the weighted average number of Liberty Latin America shares outstanding during the period, as this period occurred after the Split-Off . (b) Represents the weighted average number of LiLAC Shares , as defined in note 1 , outstanding during the period, as this period occurred prior to the Split-Off . Amount was used for both basic and dilutive EPS as no Company equity awards were outstanding prior to the Split-Off . We reported a loss attributable to Liberty Latin America shareholders during the three months ended March 31, 2018 . Therefore, the potentially dilutive effect at March 31, 2018 of the following items was not included in the computation of diluted loss per share because their inclusion would have been anti-dilutive to the computation or, in the case of certain PSUs because such awards had not yet met the applicable performance criteria: (i) the aggregate number of shares issuable pursuant to outstanding options, SARs and RSUs of approximately 10.5 million and (ii) the aggregate number of shares issuable pursuant to outstanding PSUs of approximately 1.2 million |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In the normal course of business, we have entered into agreements that commit our company to make cash payments in future periods with respect to programming contracts, network and connectivity commitments, purchases of customer premises and other equipment and services, non-cancellable operating leases and other items. The following table sets forth the U.S. dollar equivalents of such commitments as of March 31, 2018 : Payments due during: Remainder of 2018 2019 2020 2021 2022 2023 Thereafter Total in millions Programming commitments $ 120.3 $ 58.3 $ 24.4 $ 18.0 $ 2.2 $ 1.5 $ 0.7 $ 225.4 Network and connectivity commitments 82.2 74.2 25.9 18.5 14.6 13.9 24.3 253.6 Purchase commitments 110.7 27.6 9.6 1.1 1.1 0.6 — 150.7 Operating leases (a) 22.5 20.6 16.9 13.4 11.4 9.1 17.3 111.2 Other commitments (a) 8.9 2.8 1.6 1.4 1.3 1.3 10.0 27.3 Total (b) $ 344.6 $ 183.5 $ 78.4 $ 52.4 $ 30.6 $ 26.4 $ 52.3 $ 768.2 (a) Amounts include commitments under the Sublease Agreement and the Facilities Sharing Agreement as further described in note 11 . (b) The commitments included in this table do not reflect any liabilities that are included in our March 31, 2018 condensed consolidated balance sheet. Programming commitments consist of obligations associated with certain programming, studio output and sports rights contracts that are enforceable and legally binding on us as we have agreed to pay minimum fees without regard to (i) the actual number of subscribers to the programming services, (ii) whether we terminate service to a portion of our subscribers or dispose of a portion of our distribution systems or (iii) whether we discontinue our premium sports services. In addition, programming commitments do not include increases in future periods associated with contractual inflation or other price adjustments that are not fixed. Accordingly, the amounts reflected in the above table with respect to these contracts are significantly less than the amounts we expect to pay in these periods under these contracts. Historically, payments to programming vendors have represented a significant portion of our operating costs, and we expect that this will continue to be the case in future periods. In this regard, our total programming and copyright costs aggregated $96 million and $102 million during the three months ended March 31, 2018 , and 2017 , respectively. Network and connectivity commitments relate largely to (i) VTR ’s domestic network service agreements with certain other telecommunications companies and (ii) VTR ’s mobile virtual network operator ( MVNO ) agreement. The amounts reflected in the above table with respect to certain of our MVNO commitments represent fixed minimum amounts payable under these agreements and, therefore, may be significantly less than the actual amounts VTR ultimately pays in these periods. Purchase commitments include unconditional and legally-binding obligations related to (i) the purchase of customer premises and other equipment and (ii) certain service-related commitments, including call center, information technology and maintenance services. In addition to the commitments set forth in the table above, we have commitments under (i) derivative instruments and (ii) defined benefit plans and similar agreements, pursuant to which we expect to make payments in future periods. For information regarding our derivative instruments, including the net cash paid or received in connection with these instruments during the three months ended March 31, 2018 , and 2017 , see note 5 . Guarantees and Other Credit Enhancements In the ordinary course of business, we may provide (i) indemnifications to our lenders, our vendors and certain other parties and (ii) performance and/or financial guarantees to local municipalities, our customers and vendors. Historically, these arrangements have not resulted in our company making any material payments and we do not believe that they will result in material payments in the future. In addition, C&W has provided indemnifications of (i) up to $300 million with respect to any potential tax-related claims related to the disposal in April 2013 of C&W ’s interests in certain businesses and (ii) an unlimited amount of qualifying claims associated with the disposal of another business in May 2014. The first indemnification expires in April 2020 and the second expires in May 2020. We do not expect that either of these arrangements will require us to make material payments to the indemnified parties. Legal and Regulatory Proceedings and Other Contingencies Regulatory Issues. Video distribution, broadband internet, fixed-line telephony and mobile are regulated in each of the countries in which we operate. The scope of regulation varies from country to country. Adverse regulatory developments could subject our businesses to a number of risks. Regulation, including conditions imposed on us by competition or other authorities as a requirement to close acquisitions or dispositions, could limit growth, revenue and the number and types of services offered and could lead to increased operating costs and property and equipment additions. In addition, regulation may restrict our operations and subject them to further competitive pressure, including pricing restrictions, interconnect and other access obligations, and restrictions or controls on content, including content provided by third parties. Failure to comply with current or future regulation could expose our businesses to various penalties. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting | Segment Reporting We generally identify our reportable segments as those operating segments that represent 10% or more of our revenue, Adjusted OIBDA (as defined below) or total assets. We evaluate performance and make decisions about allocating resources to our reportable segments based on financial measures such as revenue and Adjusted OIBDA . In addition, we review non-financial measures such as subscriber growth, as appropriate. Adjusted OIBDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance. Adjusted OIBDA is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of annual and other incentive compensation plans. As we use the term, “ Adjusted OIBDA ” is defined as operating income before depreciation and amortization, share-based compensation, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Other operating items include (i) gains and losses on the disposition of long-lived assets, (ii) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (iii) other acquisition-related items, such as gains and losses on the settlement of contingent consideration. Our internal decision makers believe Adjusted OIBDA is a meaningful measure because it represents a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (i) readily view operating trends, (ii) perform analytical comparisons and benchmarking between segments and (iii) identify strategies to improve operating performance in the different countries in which we operate. As further described in note 2 , effective January 1, 2018, we adopted ASU 2017-07 , which resulted in the reclassification of certain pension-related credits from SG&A to non-operating income (expense) in our condensed consolidated statements of operations. As a result of the adoption, we have presented $3 million of pension-related credits in other income, net in our condensed consolidated statement of operations during each of the three months ended March 31, 2018 and 2017 . Effective December 31, 2017, we include certain charges previously allocated to us by Liberty Global in the calculation of Adjusted OIBDA . These charges represent fees for certain services provided to us and totaled $3 million for the three months ended March 31, 2017 . We believe changing the definition of Adjusted OIBDA to include these charges is meaningful given they represent operating costs we will continue to incur subsequent to the Split-Off as a standalone public company. This change has been given effect for all periods presented. A reconciliation of total Adjusted OIBDA to our earnings (loss) before income taxes is presented below. As of March 31, 2018 , our reportable segments are as follows: • C&W • VTR • Liberty Puerto Rico Our reportable segments derive their revenue primarily from residential and B2B services, including video, broadband internet and fixed-line telephony services and, with the exception of Liberty Puerto Rico , mobile services. We provide residential and B2B services in (i) 18 countries, primarily in Latin America and the Caribbean, through C&W , (ii) Chile through VTR and (iii) Puerto Rico through Liberty Puerto Rico . C&W also provides (i) B2B communication services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its sub-sea and terrestrial fiber optic cable networks that connect over 40 markets in that region. Performance Measures of our Reportable Segments The amounts presented below represent 100% of each of our reportable segment’s revenue and Adjusted OIBDA . As we have the ability to control Liberty Puerto Rico and certain subsidiaries of C&W that are not wholly-owned, we include 100% of the revenue and expenses of these entities in our condensed consolidated statements of operations despite the fact that third parties own significant interests in these entities. The noncontrolling owners’ interests in the operating results of Liberty Puerto Rico and certain subsidiaries of C&W are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations. Revenue Adjusted OIBDA Three months ended March 31, Three months ended March 31, 2018 2017 2018 2017 in millions C&W $ 585.5 $ 575.6 $ 229.1 $ 209.9 VTR 263.8 229.3 105.0 91.6 Liberty Puerto Rico 61.8 106.7 18.0 51.3 Corporate — — (11.3 ) (5.1 ) Intersegment eliminations (1.2 ) (0.7 ) — — Total $ 909.9 $ 910.9 $ 340.8 $ 347.7 The following table provides a reconciliation of total Adjusted OIBDA to earnings (loss) before income taxes: Three months ended March 31, 2018 2017 in millions Total Adjusted OIBDA $ 340.8 $ 347.7 Share-based compensation (6.5 ) (5.6 ) Depreciation and amortization (202.3 ) (193.9 ) Impairment, restructuring and other operating items, net (33.7 ) (13.4 ) Operating income 98.3 134.8 Interest expense (102.5 ) (94.3 ) Realized and unrealized losses on derivative instruments, net (41.5 ) (27.3 ) Foreign currency transaction gains, net 15.9 14.5 Loss on debt modification and extinguishment (13.0 ) — Other income, net 5.3 6.0 Earnings (loss) before income taxes $ (37.5 ) $ 33.7 Property and Equipment Additions of our Reportable Segments The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or capital lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our condensed consolidated statements of cash flows. Three months ended March 31, 2018 2017 in millions C&W $ 67.2 $ 60.5 VTR 57.0 55.4 Liberty Puerto Rico 69.8 23.3 Total property and equipment additions 194.0 139.2 Assets acquired under capital-related vendor financing arrangements (20.7 ) (14.1 ) Assets acquired under capital leases (0.6 ) (0.9 ) Changes in current liabilities related to capital expenditures 15.5 0.2 Total capital expenditures $ 188.2 $ 124.4 Revenue by Major Category Our revenue by major category for our reportable segments is set forth in the tables below. As further described in note 2 , we adopted ASU 2014-09 effective January 1, 2018 using the cumulative effect transition method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of ASU 2014-09 did not have a material impact on our revenue by category. Three months ended March 31, 2018 C&W VTR Liberty Puerto Rico Intersegment Eliminations Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (a): Video $ 42.7 $ 99.7 $ 23.3 $ — $ 165.7 Broadband internet 53.7 96.6 25.3 — 175.6 Fixed-line telephony 26.9 34.6 3.5 — 65.0 Total subscription revenue 123.3 230.9 52.1 — 406.3 Non-subscription revenue (b) 21.5 7.5 1.7 — 30.7 Total residential fixed revenue 144.8 238.4 53.8 — 437.0 Residential mobile revenue: Subscription revenue (a) 155.1 16.3 — — 171.4 Non-subscription revenue (c) 22.1 3.2 — — 25.3 Total residential mobile revenue 177.2 19.5 — — 196.7 Total residential revenue 322.0 257.9 53.8 — 633.7 B2B revenue: Subscription revenue — 5.6 4.3 — 9.9 Non-subscription revenue (d) 203.9 0.3 3.0 (1.2 ) 206.0 Sub-sea network revenue (e) 59.6 — — — 59.6 Total B2B revenue 263.5 5.9 7.3 (1.2 ) 275.5 Other revenue — — 0.7 — 0.7 Total $ 585.5 $ 263.8 $ 61.8 $ (1.2 ) $ 909.9 (a) Residential fixed and mobile subscription revenue includes amounts received from subscribers for ongoing services. (b) Residential fixed non-subscription revenue includes, among other items, interconnect and advertising revenue. (c) Residential mobile non-subscription revenue includes, among other items, interconnect revenue and revenue from sales of mobile handsets and other devices. (d) B2B non-subscription revenue primarily includes business broadband internet, video, fixed-line telephony, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other telecommunication operators. (e) B2B sub-sea network revenue includes long-term capacity contracts with customers where the customer either pays a fixed fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. Three months ended March 31, 2017 C&W VTR Liberty Puerto Rico Intersegment Eliminations Total in millions Residential revenue: Residential fixed revenue: Subscription revenue: Video $ 40.5 $ 87.4 $ 42.7 $ — $ 170.6 Broadband internet 52.8 82.3 40.4 — 175.5 Fixed-line telephony 29.3 34.3 6.4 — 70.0 Total subscription revenue 122.6 204.0 89.5 — 416.1 Non-subscription revenue 23.5 7.4 5.9 — 36.8 Total residential fixed revenue 146.1 211.4 95.4 — 452.9 Residential mobile revenue: Subscription revenue 161.8 12.6 — — 174.4 Non-subscription revenue 19.9 2.3 — — 22.2 Total residential mobile revenue 181.7 14.9 — — 196.6 Total residential revenue 327.8 226.3 95.4 — 649.5 B2B revenue: Subscription revenue — 2.7 6.7 — 9.4 Non-subscription revenue 201.4 0.3 3.3 (0.7 ) 204.3 Sub-sea network revenue 46.4 — — — 46.4 Total B2B revenue 247.8 3.0 10.0 (0.7 ) 260.1 Other revenue — — 1.3 — 1.3 Total $ 575.6 $ 229.3 $ 106.7 $ (0.7 ) $ 910.9 Geographic Segments The revenue of our geographic segments is set forth below: Three months ended March 31, 2018 2017 in millions C&W (a): Panama $ 149.2 $ 153.7 Jamaica 92.5 83.6 Networks & LatAm (b) 94.1 76.9 The Bahamas 64.1 72.0 Barbados 39.4 40.2 Trinidad and Tobago 40.7 42.8 Other (c) 105.5 106.4 Total C&W 585.5 575.6 Chile 263.8 229.3 Puerto Rico 61.8 106.7 Intersegment eliminations (1.2 ) (0.7 ) Total $ 909.9 $ 910.9 (a) Except as otherwise noted, the amounts presented for each C&W jurisdiction include revenue from residential and B2B operations. (b) The amounts represent wholesale services revenue from various jurisdictions across the Caribbean and Latin America, primarily related to the sale and lease of telecom capacity on C&W ’s sub-sea and terrestrial networks. (c) The amounts relate to a number of countries in which C&W has less significant operations, all but one of which are located in Latin America and the Caribbean. In addition, these amounts include C&W |
Summary of Changes in Signifi24
Summary of Changes in Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. |
Accounting Changes and Recent Accounting Pronouncements | Accounting Changes ASU 2014-09 In May 2014, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) No. 2014-09, Revenue from Contracts with Customers ( ASU 2014-09 ), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. We adopted ASU 2014-09 effective January 1, 2018 by recording the cumulative effect to the opening balance of our accumulated deficit. We applied the new standard to contracts that were not complete as of January 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The most significant impacts of ASU 2014-09 on our revenue recognition policies relate to our accounting for (i) long-term capacity contracts, (ii) subsidized handset plans and (iii) certain installation and other upfront fees, each as set forth below: • We enter into certain long-term capacity contracts with customers where the customer pays the transaction consideration at inception of the contract. Under previous accounting standards, we did not impute interest for advance payments from customers related to services that are provided over time. Under ASU 2014-09 , payment received from a customer significantly in advance of the provision of services is indicative of a financing component within the contract. If the financing component is significant, interest expense is accreted over the life of the contract with a corresponding increase to revenue. • ASU 2014-09 requires the identification of deliverables in contracts with customers that qualify as performance obligations. The transaction price consideration from customers is allocated to each performance obligation under the contract on the basis of relative standalone selling price. Under previous accounting standards, when we offered discounted equipment, such as handsets under a subsidized contract, upfront revenue recognition was limited to the upfront cash collected from the customer as the remaining monthly fees to be received from the customer, including fees associated with the equipment, were contingent upon delivering future airtime. This limitation is not applied under ASU 2014-09 . The primary impact on revenue reporting is that when we sell discounted equipment together with airtime services to customers, revenue allocated to equipment and recognized when control of the device passes to the customer will increase and revenue recognized as services are delivered will decrease. • When we enter into contracts to provide services to our customers, we often charge installation or other upfront fees. Under previous accounting standards, installation fees related to services provided over our fixed networks were recognized as revenue during the period in which the installation occurred to the extent those fees were equal to or less than direct selling costs. Under ASU 2014-09 , these fees are generally deferred and recognized as revenue over the contractual period for those contracts with substantive termination penalties, or for the period of time the upfront fees convey a material right for month-to-month contracts and contracts that do not include substantive termination penalties. ASU 2014-09 also impacted our accounting for certain upfront costs directly associated with obtaining and fulfilling customer contracts. Under our previous policy, these costs were expensed as incurred unless the costs were in the scope of other accounting standards that allowed for capitalization. Under ASU 2014-09 , the upfront costs associated with contracts that have substantive termination penalties and a term of longer than one year are recognized as assets and amortized to other operating expenses over the applicable period benefited. We implemented internal controls to ensure we adequately evaluated our contracts and properly assessed the impact of ASU 2014-09 on our condensed consolidated financial statements. We do not believe such new controls represent significant changes to our internal control over financial reporting. For information regarding changes to our accounting policies following the adoption of ASU 2014-09 and our contract assets and deferred revenue balances, see note 3 . The cumulative effect of the changes made to our condensed consolidated balance sheet as of January 1, 2018 is as follows: Balance at December 31, 2017 Cumulative catch up adjustments upon adoption Balance at January 1, 2018 in millions Assets: Other current assets $ 222.9 $ 15.8 $ 238.7 Other assets, net $ 517.7 $ 15.6 $ 533.3 Liabilities: Deferred revenue $ 143.4 $ 13.3 $ 156.7 Other long-term liabilities $ 697.8 $ 25.6 $ 723.4 Equity: Accumulated deficit $ (1,010.7 ) $ (11.1 ) $ (1,021.8 ) Noncontrolling interests $ 1,361.0 $ 3.6 $ 1,364.6 The impact of our adoption of ASU 2014-09 to our condensed consolidated statement of operations for the three months ended March 31, 2018 is as follows: Before adoption of ASU 2014-09 Impact of ASU 2014-09 Increase (decrease) As reported in millions Revenue $ 909.0 $ 0.9 $ 909.9 Operating costs and expenses – selling, general and administrative $ 193.6 $ (0.3 ) $ 193.3 Non-operating expense – interest expense $ 98.3 $ 4.2 $ 102.5 Income tax expense $ 17.3 $ (0.5 ) $ 16.8 Net loss $ 51.8 $ 2.5 $ 54.3 ASU 2016-18 In November 2016, the FASB issued ASU 2016-18 , Statement of Cash Flows-Restricted Cash ( ASU 2016-18 ), which addresses the presentation of restricted cash in the statement of cash flows. This ASU requires that the statement of cash flows explain the change in the beginning-of-period and end-of-period totals of cash, cash equivalents and restricted cash balances. We adopted ASU 2016-18 on January 1, 2018, which resulted in an increase (decrease) to our operating, financing and investing cash flows of ( $1 million ), $3 million , and $6 million , respectively, during the three months ended March 31, 2017 . At March 31, 2018 and December 31, 2017 , the balance of our restricted cash was $21 million and $38 million , respectively. ASU 2017-07 In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits—Improving the Presentation of the Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ( ASU 2017-07 ), which includes changes to the presentation of periodic benefit cost components. Under ASU 2017-07 , we will continue to present the service component of our net benefit cost as a component of operating income but present the other components of our net benefit cost computation, which can include credits, within non-operating income (expense) in our consolidated statements of operations. We adopted ASU 2017-07 on January 1, 2018. The change in presentation to our condensed consolidated statements of operations from ASU 2017-07 was applied on a retrospective basis. As a result of the adoption of ASU 2017-07 , we have presented $3 million of pension-related credits in other income, net in our condensed consolidated statements of operations for each of the three months ended March 31, 2018 and 2017 . Recent Accounting Pronouncements ASU 2016-02 In February 2016, the FASB issued ASU No. 2016-02, Leases ( ASU 2016-02 ), which, for most leases, will result in lessees recognizing lease assets and lease liabilities on the balance sheet with additional disclosures about leasing arrangements. ASU 2016-02 requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach and additional guidance provided by ASU 2018-01, Leases (Topic 842)—Land Easement Practical Expedient for Transition to Topic 842 , includes a number of optional practical expedients an entity may elect to apply. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We will adopt ASU 2016-02 on January 1, 2019. Although we are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements, the main impact of the adoption of this standard will be the recognition of lease assets and lease liabilities in our consolidated balance sheets for those leases classified as operating leases under previous U.S. GAAP . ASU 2016-02 |
Contract Assets, Deferred Contract Costs, Deferred Revenue, and Revenue Recognition | Contract Assets When we transfer goods or services to a customer but do not have an unconditional right to payment, we record a contract asset. Contract assets are reclassified to trade receivables, net in our consolidated balance sheet at the point in time we have the unconditional right to payment. Our contract assets were $12 million and $13 million as of March 31, 2018 and January 1, 2018, respectively. The change in our contract assets during the three months ended March 31, 2018 were not material. The current and long-term portion of contract assets are included in other current assets and other assets, net, respectively, in our condensed consolidated balance sheet. Deferred Contract Costs Incremental costs to obtain a contract with a customer, such as incremental sales commissions, are recognized as an asset and amortized to SG&A expenses over the applicable period benefited, which is the longer of the contract life or the economic life of the commission. If, however, the amortization period is one year or less, we expense such costs in the period incurred. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred. Our deferred contract costs were $10 million and $9 million as of March 31, 2018 and January 1, 2018, respectively. The change in our contract assets during the three months ended March 31, 2018 were not material. The current and long-term portion of deferred contract costs are included in other current assets and other assets, net, respectively, in our condensed consolidated balance sheet. Deferred Revenue We record deferred revenue when we have received payment prior to transferring goods or services to a customer. Deferred revenue primarily relates to (i) advanced payments on fixed subscription services and mobile airtime services and (ii) deferred installation and other upfront fees. Our aggregate current and long-term deferred revenue as of March 31, 2018 and December 31, 2017, was $417 million and $397 million , respectively. Long-term deferred revenue is included in other long-term liabilities in our condensed consolidated balance sheets. We recorded an aggregate of $19 million of current and long-term deferred revenue on January 1, 2018 upon the adoption of ASU 2014-09 . The remaining change in the current portion and long-term deferred revenue balances during the three months ended March 31, 2018 were not material. Revenue Recognition General . Most of our fixed and mobile residential contracts are not enforceable or do not contain substantive early termination penalties. Accordingly, revenue relating to these customers is recognized on a basis consistent with these customers that are not subject to contracts. Subscription Revenue – Fixed Networks. We recognize revenue from video, broadband internet and fixed-line telephony services over our fixed networks to customers in the period the related subscription services are provided. Installation or other upfront fees related to services provided over our fixed networks are generally deferred and recognized as subscription revenue over the contractual period, or longer if the upfront fee results in a material renewal right. We may also sell video, broadband internet and fixed-line telephony services to our customers in bundled packages at a rate lower than if the customer purchased each product on a standalone basis. Arrangement consideration from bundled packages generally is allocated proportionally to the individual service based on the relative standalone price for each respective product or service. Mobile Revenue – General. Consideration from mobile contracts is allocated to airtime services and handset sales based on the relative standalone prices of each performance obligation. Mobile Revenue – Airtime Services. We recognize revenue from mobile services in the period the related services are provided. Payments received from prepay customers are recorded as deferred revenue prior to the commencement of services and are recognized as revenue as the services are rendered or usage rights expire. Mobile Revenue – Handset Revenue. Arrangement consideration allocated to handsets is recognized as revenue when the goods have been transferred to the customer. B2B Revenue – Installation Revenue. We defer upfront installation and certain nonrecurring fees received on B2B contracts where we maintain ownership of the installed equipment. The deferred fees are amortized into revenue on a straight-line basis over the term of the arrangement or the expected period of performance. Sub-sea Network Revenue – Long-term Capacity Contracts. |
Accounting Changes and Recent25
Accounting Changes and Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of new accounting pronouncements | The cumulative effect of the changes made to our condensed consolidated balance sheet as of January 1, 2018 is as follows: Balance at December 31, 2017 Cumulative catch up adjustments upon adoption Balance at January 1, 2018 in millions Assets: Other current assets $ 222.9 $ 15.8 $ 238.7 Other assets, net $ 517.7 $ 15.6 $ 533.3 Liabilities: Deferred revenue $ 143.4 $ 13.3 $ 156.7 Other long-term liabilities $ 697.8 $ 25.6 $ 723.4 Equity: Accumulated deficit $ (1,010.7 ) $ (11.1 ) $ (1,021.8 ) Noncontrolling interests $ 1,361.0 $ 3.6 $ 1,364.6 The impact of our adoption of ASU 2014-09 to our condensed consolidated statement of operations for the three months ended March 31, 2018 is as follows: Before adoption of ASU 2014-09 Impact of ASU 2014-09 Increase (decrease) As reported in millions Revenue $ 909.0 $ 0.9 $ 909.9 Operating costs and expenses – selling, general and administrative $ 193.6 $ (0.3 ) $ 193.3 Non-operating expense – interest expense $ 98.3 $ 4.2 $ 102.5 Income tax expense $ 17.3 $ (0.5 ) $ 16.8 Net loss $ 51.8 $ 2.5 $ 54.3 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of our derivative instrument assets and liabilities | The following table provides details of the fair values of our derivative instrument assets and liabilities: March 31, 2018 December 31, 2017 Current (a) Long-term (a) Total Current (a) Long-term (a) Total in millions Assets: Cross-currency and interest rate derivative contracts (b) $ 16.5 $ 100.6 $ 117.1 $ 2.9 $ 38.4 $ 41.3 Foreign currency forward contracts — 0.4 0.4 — — — Total $ 16.5 $ 101.0 $ 117.5 $ 2.9 $ 38.4 $ 41.3 Liabilities: Cross-currency and interest rate derivative contracts (b) $ 62.1 $ 125.2 $ 187.3 $ 29.4 $ 51.9 $ 81.3 Foreign currency forward contracts 13.4 — 13.4 12.8 — 12.8 Total $ 75.5 $ 125.2 $ 200.7 $ 42.2 $ 51.9 $ 94.1 (a) Our current derivative assets, current derivative liabilities, long-term derivative assets and long-term derivative liabilities are included in other current assets, other accrued and current liabilities, other assets, net, and other long-term liabilities, respectively, in our condensed consolidated balance sheets. (b) We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 8 ). The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in a net gain (loss) of ( $12 million ) and $7 million during the three months ended March 31, 2018 and 2017 , respectively. These amounts are included in realized and unrealized losses on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 6 |
Schedule of realized and unrealized gains (losses) on derivative instruments, net | The details of our realized and unrealized losses on derivative instruments, net, are as follows: Three months ended March 31, 2018 2017 in millions Cross-currency and interest rate derivative contracts $ (38.9 ) $ (25.5 ) Foreign currency forward contracts (2.6 ) (1.8 ) Total $ (41.5 ) $ (27.3 ) |
Schedule of classification of the net cash inflows (outflows) of our derivative instruments | The following table sets forth the classification of the net cash outflows of our derivative instruments: Three months ended March 31, 2018 2017 in millions Operating activities $ (11.7 ) $ (10.7 ) Investing activities (1.7 ) (1.2 ) Total $ (13.4 ) $ (11.9 ) |
Schedule of derivative instruments | The weighted average impact of the derivative instruments, excluding forward-starting derivative instruments, on our borrowing costs at March 31, 2018 was as follows: Borrowing group Increase (decrease) to borrowing costs C&W 0.43 % VTR Finance (0.52 )% Liberty Puerto Rico 0.44 % Liberty Latin America borrowing groups 0.22 % U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our interest rate swap contracts at March 31, 2018 : Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W (a) $ 2,975.0 6.1 Liberty Puerto Rico $ 675.0 3.0 (a) Includes forward-starting derivative instruments. The following table sets forth the total notional amounts and the related weighted average remaining contractual lives of our cross-currency swap contracts at March 31, 2018 : Borrowing group Notional amount due from counterparty Notional amount due to counterparty Weighted average remaining life in millions in years C&W $ 108.3 JMD 13,817.5 4.8 $ 35.4 COP 106,000.0 4.3 £ 146.7 $ 194.3 1.0 VTR Finance $ 1,400.0 CLP 951,390.0 4.2 |
Long-lived Assets (Tables)
Long-lived Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the carrying amount of our goodwill during the three months ended March 31, 2018 are set forth below: January 1, Foreign currency translation adjustments March 31, in millions C&W $ 4,962.5 $ (18.3 ) $ 4,944.2 VTR 433.4 8.3 441.7 Liberty Puerto Rico 277.7 — 277.7 Total $ 5,673.6 $ (10.0 ) $ 5,663.6 |
Schedule of property and equipment and the related accumulated depreciation | The details of our property and equipment and the related accumulated depreciation are set forth below: March 31, December 31, in millions Distribution systems $ 4,047.2 $ 3,878.4 Customer premises equipment 1,438.8 1,382.8 Support equipment, buildings and land 1,338.6 1,306.3 6,824.6 6,567.5 Accumulated depreciation (2,588.4 ) (2,398.3 ) Total $ 4,236.2 $ 4,169.2 |
Schedule of intangible assets subject to amortization | The details of our intangible assets subject to amortization are set forth below: March 31, December 31, in millions Gross carrying amount: Customer relationships $ 1,459.3 $ 1,415.1 Licenses and other 184.2 199.8 Total gross carrying amount 1,643.5 1,614.9 Accumulated amortization: Customer relationships (374.6 ) (284.2 ) Licenses and other (17.3 ) (14.5 ) Total accumulated amortization (391.9 ) (298.7 ) Net carrying amount $ 1,251.6 $ 1,316.2 |
Debt and Capital Lease Obliga28
Debt and Capital Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt and Capital Lease Obligations [Abstract] | |
Schedule of debt | The U.S. dollar equivalents of the components of our debt are as follows: March 31, 2018 Estimated fair value (c) Principal Amount Weighted Unused borrowing capacity (b) Borrowing currency US $ equivalent March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 in millions C&W Credit Facilities 4.95 % $ 746.5 $ 746.5 $ 2,243.7 $ 2,216.4 $ 2,235.9 $ 2,212.2 C&W Notes 7.09 % — — 1,712.3 1,749.7 1,655.9 1,648.4 VTR Finance Senior Secured Notes 6.88 % — — 1,452.3 1,479.6 1,400.0 1,400.0 VTR Credit Facility — % (d) 232.9 — — — — LPR Bank Facility 5.52 % — — 951.1 951.8 982.5 982.5 Vendor financing (e) 4.43 % — — 149.1 137.4 149.1 137.4 Total debt before premiums, discounts and deferred financing costs 6.00 % $ 979.4 $ 6,508.5 $ 6,534.9 $ 6,423.4 $ 6,380.5 The following table provides a reconciliation of total debt before premiums, discounts and deferred financing costs to total debt and capital lease obligations: March 31, 2018 December 31, 2017 in millions Total debt before premiums, discounts and deferred financing costs $ 6,423.4 $ 6,380.5 Premiums, discounts and deferred financing costs, net (20.8 ) (26.5 ) Total carrying amount of debt 6,402.6 6,354.0 Capital lease obligations 16.8 17.5 Total debt and capital lease obligations 6,419.4 6,371.5 Less: Current maturities of debt and capital lease obligations (212.3 ) (263.3 ) Long-term debt and capital lease obligations $ 6,207.1 $ 6,108.2 (a) Represents the weighted average interest rate in effect at March 31, 2018 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. Including the effects of derivative instruments, original issue premiums or discounts and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 6.30% at March 31, 2018 . For information regarding our derivative instruments, see note 5 . (b) Unused borrowing capacity represents the maximum availability under the applicable facility at March 31, 2018 without regard to covenant compliance calculations or other conditions precedent to borrowing. At March 31, 2018 , the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after consideration of the completion of the March 31, 2018 compliance reporting requirements, which include leverage-based payment tests and leverage covenants. At March 31, 2018 , there were no restrictions on the respective subsidiary’s ability to make loans or distributions from this availability to Liberty Latin America or its subsidiaries or other equity holders. (c) The estimated fair values of our debt instruments are determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy). The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors. For additional information regarding fair value hierarchies, see note 6 . (d) The VTR Credit Facility is the senior secured credit facility of VTR and certain of its subsidiaries and comprises a $160 million facility (the VTR Dollar Credit Facility ) and a CLP 44 billion ( $73 million ) facility (the VTR Peso Credit Facility ), each of which were undrawn at March 31, 2018 . (e) Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our property and equipment additions and, to a lesser extent, certain of our operating expenses. These obligations are generally due within one year and include value-added taxes ( VAT ) that were paid on our behalf by the vendor. Our operating expenses for the three months ended March 31, 2018 and 2017 include $32 million and $10 million |
Schedule of credit facilities | The details of our borrowings under the C&W Credit Facilities as of March 31, 2018 are summarized in the following table: C&W Credit Facilities Maturity Interest rate Facility amount (in borrowing currency) Outstanding principal amount Unused borrowing capacity Carrying value (a) in millions C&W Term Loan B-4 Facility January 31, 2026 LIBOR + 3.25% $ 1,875.0 $ 1,875.0 $ — $ 1,869.2 C&W Revolving Credit Facility June 30, 2023 LIBOR + 3.25% $ 625.0 10.0 615.0 10.0 C&W Regional Facilities various dates ranging from 2018 to 2038 4.00% (b) $ 482.4 350.9 131.5 349.9 Total $ 2,235.9 $ 746.5 $ 2,229.1 (a) Amounts are net of discounts and deferred financing costs, where applicable. (b) Represents a weighted average rate for all C&W Regional Facilities |
Schedule of maturities of debt | Debt: C&W VTR Liberty Puerto Rico Consolidated in millions Years ending December 31: 2018 (remainder of year) $ 94.6 $ 78.6 $ — $ 173.2 2019 234.9 22.9 — 257.8 2020 24.9 — 40.0 64.9 2021 125.0 — — 125.0 2022 765.2 — 850.0 1,615.2 2023 113.8 — 92.5 206.3 Thereafter 2,581.0 1,400.0 — 3,981.0 Total debt maturities 3,939.4 1,501.5 982.5 6,423.4 Premiums, discounts and deferred financing costs, net 11.2 (21.3 ) (10.7 ) (20.8 ) Total debt $ 3,950.6 $ 1,480.2 $ 971.8 $ 6,402.6 Current portion $ 98.6 $ 101.6 $ — $ 200.2 Noncurrent portion $ 3,852.0 $ 1,378.6 $ 971.8 $ 6,202.4 |
Schedule of maturities of capital lease obligations | Capital lease obligations: C&W VTR Liberty Puerto Rico Consolidated in millions Year ending December 31: 2018 (remainder of year) $ 12.1 $ 0.2 $ — $ 12.3 2019 3.1 0.4 — 3.5 2020 1.4 0.1 — 1.5 2021 0.1 — — 0.1 Total principal and interest payments 16.7 0.7 — 17.4 Amounts representing interest (0.6 ) — — (0.6 ) Present value of net minimum lease payments $ 16.1 $ 0.7 $ — $ 16.8 Current portion $ 11.8 $ 0.3 $ — $ 12.1 Noncurrent portion $ 4.3 $ 0.4 $ — $ 4.7 |
Related-party Transactions (Tab
Related-party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Our related-party transactions prior to the Split-Off for the three months ended March 31, 2017 are as follows (in millions): Revenue $ 4.0 Allocated share-based compensation expense (3.3 ) Charges from Liberty Global (3.0 ) Included in operating income (2.3 ) Interest income 1.5 Allocated tax expense (1.8 ) Included in net loss $ (2.6 ) March 31, 2018 December 31, 2017 in millions Assets: Current assets – related-party receivables (a) $ 3.8 $ 4.2 Income tax receivable (b) 3.8 — Total assets $ 7.6 $ 4.2 Liabilities – accounts payable and other accrued and current liabilities (c) $ 5.3 $ 1.4 (a) Represents non-interest bearing receivables due from certain Liberty Global subsidiaries. (b) This amount represents the benefit of related-party tax allocations, which arise from the estimated utilization of certain net operating losses of Liberty Latin America that are included in Liberty Global ’s U.S. consolidated income tax filing for the period preceding the Split-Off . (c) Represents non-interest bearing payables to certain Liberty Global |
Restructuring Liabilities (Tabl
Restructuring Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of changes in restructuring liabilities | A summary of changes in our restructuring liabilities during the three months ended March 31, 2018 is set forth in the table below: Employee severance and termination Contract termination and other Total in millions Restructuring liability as of January 1, 2018 $ 6.2 $ 25.4 $ 31.6 Restructuring charges 24.1 1.6 25.7 Cash paid (5.5 ) (1.3 ) (6.8 ) Foreign currency translation adjustments — 0.4 0.4 Restructuring liability as of March 31, 2018 $ 24.8 $ 26.1 $ 50.9 Current portion $ 24.3 $ 12.4 $ 36.7 Noncurrent portion 0.5 13.7 14.2 Total $ 24.8 $ 26.1 $ 50.9 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock-based compensation | The following table summarizes our share-based compensation expense: Three months ended March 31, 2018 2017 in millions Included in: Other operating expense $ 0.1 $ 0.5 SG&A expense 6.4 5.1 Total $ 6.5 $ 5.6 |
Schedule of SARs | The following tables summarize the share-based incentive awards related to Liberty Latin America shares as of March 31, 2018 : Number of Weighted average base price Weighted average remaining contractual term Share-based incentive award type in years Stock appreciation rights ( SARs ): Class A common shares: Outstanding 1,274,964 $ 26.50 5.7 Exercisable 336,956 $ 30.95 4.5 Class C common shares: Outstanding 2,603,506 $ 26.84 5.6 Exercisable 737,051 $ 31.17 4.3 |
Schedule of RSUs | Number of Weighted average remaining contractual term Share-based incentive award type in years Restricted stock units ( RSUs ) outstanding: Class A common shares 139,657 2.4 Class C common shares 288,522 2.3 Performance-based restricted stock units ( PSUs ) outstanding : Class A common shares 173,849 1.5 Class C common shares 340,291 1.5 |
Schedule of PSUs | Number of Weighted average remaining contractual term Share-based incentive award type in years Restricted stock units ( RSUs ) outstanding: Class A common shares 139,657 2.4 Class C common shares 288,522 2.3 Performance-based restricted stock units ( PSUs ) outstanding : Class A common shares 173,849 1.5 Class C common shares 340,291 1.5 |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average shares outstanding | Basic earnings (loss) per share ( EPS ) is computed by dividing net earnings (loss) attributable to Liberty Latin America shareholders by the weighted average number of Liberty Latin America Shares or LiLAC Shares outstanding during the periods presented, as further described below. Diluted EPS presents the dilutive effect, if any, on a per share basis of potential shares (e.g., SARs and RSUs ) as if they had been exercised or vested at the beginning of the periods presented. Three months ended March 31, 2018 (a) 2017 (b) Weighted average shares outstanding - basic and dilutive 171,231,111 172,743,854 (a) Represents the weighted average number of Liberty Latin America shares outstanding during the period, as this period occurred after the Split-Off . (b) Represents the weighted average number of LiLAC Shares , as defined in note 1 , outstanding during the period, as this period occurred prior to the Split-Off . Amount was used for both basic and dilutive EPS as no Company equity awards were outstanding prior to the Split-Off |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of commitments | The following table sets forth the U.S. dollar equivalents of such commitments as of March 31, 2018 : Payments due during: Remainder of 2018 2019 2020 2021 2022 2023 Thereafter Total in millions Programming commitments $ 120.3 $ 58.3 $ 24.4 $ 18.0 $ 2.2 $ 1.5 $ 0.7 $ 225.4 Network and connectivity commitments 82.2 74.2 25.9 18.5 14.6 13.9 24.3 253.6 Purchase commitments 110.7 27.6 9.6 1.1 1.1 0.6 — 150.7 Operating leases (a) 22.5 20.6 16.9 13.4 11.4 9.1 17.3 111.2 Other commitments (a) 8.9 2.8 1.6 1.4 1.3 1.3 10.0 27.3 Total (b) $ 344.6 $ 183.5 $ 78.4 $ 52.4 $ 30.6 $ 26.4 $ 52.3 $ 768.2 (a) Amounts include commitments under the Sublease Agreement and the Facilities Sharing Agreement as further described in note 11 . (b) The commitments included in this table do not reflect any liabilities that are included in our March 31, 2018 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Revenue and Adjusted OIBDA by segment | The amounts presented below represent 100% of each of our reportable segment’s revenue and Adjusted OIBDA . As we have the ability to control Liberty Puerto Rico and certain subsidiaries of C&W that are not wholly-owned, we include 100% of the revenue and expenses of these entities in our condensed consolidated statements of operations despite the fact that third parties own significant interests in these entities. The noncontrolling owners’ interests in the operating results of Liberty Puerto Rico and certain subsidiaries of C&W are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations. Revenue Adjusted OIBDA Three months ended March 31, Three months ended March 31, 2018 2017 2018 2017 in millions C&W $ 585.5 $ 575.6 $ 229.1 $ 209.9 VTR 263.8 229.3 105.0 91.6 Liberty Puerto Rico 61.8 106.7 18.0 51.3 Corporate — — (11.3 ) (5.1 ) Intersegment eliminations (1.2 ) (0.7 ) — — Total $ 909.9 $ 910.9 $ 340.8 $ 347.7 |
Reconciliation of total Adjusted OIBDA to earnings (loss) before income taxes | The following table provides a reconciliation of total Adjusted OIBDA to earnings (loss) before income taxes: Three months ended March 31, 2018 2017 in millions Total Adjusted OIBDA $ 340.8 $ 347.7 Share-based compensation (6.5 ) (5.6 ) Depreciation and amortization (202.3 ) (193.9 ) Impairment, restructuring and other operating items, net (33.7 ) (13.4 ) Operating income 98.3 134.8 Interest expense (102.5 ) (94.3 ) Realized and unrealized losses on derivative instruments, net (41.5 ) (27.3 ) Foreign currency transaction gains, net 15.9 14.5 Loss on debt modification and extinguishment (13.0 ) — Other income, net 5.3 6.0 Earnings (loss) before income taxes $ (37.5 ) $ 33.7 |
Capital expenditures of reportable segments | The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or capital lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our condensed consolidated statements of cash flows. Three months ended March 31, 2018 2017 in millions C&W $ 67.2 $ 60.5 VTR 57.0 55.4 Liberty Puerto Rico 69.8 23.3 Total property and equipment additions 194.0 139.2 Assets acquired under capital-related vendor financing arrangements (20.7 ) (14.1 ) Assets acquired under capital leases (0.6 ) (0.9 ) Changes in current liabilities related to capital expenditures 15.5 0.2 Total capital expenditures $ 188.2 $ 124.4 |
Revenue by major category | Our revenue by major category for our reportable segments is set forth in the tables below. As further described in note 2 , we adopted ASU 2014-09 effective January 1, 2018 using the cumulative effect transition method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of ASU 2014-09 did not have a material impact on our revenue by category. Three months ended March 31, 2018 C&W VTR Liberty Puerto Rico Intersegment Eliminations Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (a): Video $ 42.7 $ 99.7 $ 23.3 $ — $ 165.7 Broadband internet 53.7 96.6 25.3 — 175.6 Fixed-line telephony 26.9 34.6 3.5 — 65.0 Total subscription revenue 123.3 230.9 52.1 — 406.3 Non-subscription revenue (b) 21.5 7.5 1.7 — 30.7 Total residential fixed revenue 144.8 238.4 53.8 — 437.0 Residential mobile revenue: Subscription revenue (a) 155.1 16.3 — — 171.4 Non-subscription revenue (c) 22.1 3.2 — — 25.3 Total residential mobile revenue 177.2 19.5 — — 196.7 Total residential revenue 322.0 257.9 53.8 — 633.7 B2B revenue: Subscription revenue — 5.6 4.3 — 9.9 Non-subscription revenue (d) 203.9 0.3 3.0 (1.2 ) 206.0 Sub-sea network revenue (e) 59.6 — — — 59.6 Total B2B revenue 263.5 5.9 7.3 (1.2 ) 275.5 Other revenue — — 0.7 — 0.7 Total $ 585.5 $ 263.8 $ 61.8 $ (1.2 ) $ 909.9 (a) Residential fixed and mobile subscription revenue includes amounts received from subscribers for ongoing services. (b) Residential fixed non-subscription revenue includes, among other items, interconnect and advertising revenue. (c) Residential mobile non-subscription revenue includes, among other items, interconnect revenue and revenue from sales of mobile handsets and other devices. (d) B2B non-subscription revenue primarily includes business broadband internet, video, fixed-line telephony, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other telecommunication operators. (e) B2B sub-sea network revenue includes long-term capacity contracts with customers where the customer either pays a fixed fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. Three months ended March 31, 2017 C&W VTR Liberty Puerto Rico Intersegment Eliminations Total in millions Residential revenue: Residential fixed revenue: Subscription revenue: Video $ 40.5 $ 87.4 $ 42.7 $ — $ 170.6 Broadband internet 52.8 82.3 40.4 — 175.5 Fixed-line telephony 29.3 34.3 6.4 — 70.0 Total subscription revenue 122.6 204.0 89.5 — 416.1 Non-subscription revenue 23.5 7.4 5.9 — 36.8 Total residential fixed revenue 146.1 211.4 95.4 — 452.9 Residential mobile revenue: Subscription revenue 161.8 12.6 — — 174.4 Non-subscription revenue 19.9 2.3 — — 22.2 Total residential mobile revenue 181.7 14.9 — — 196.6 Total residential revenue 327.8 226.3 95.4 — 649.5 B2B revenue: Subscription revenue — 2.7 6.7 — 9.4 Non-subscription revenue 201.4 0.3 3.3 (0.7 ) 204.3 Sub-sea network revenue 46.4 — — — 46.4 Total B2B revenue 247.8 3.0 10.0 (0.7 ) 260.1 Other revenue — — 1.3 — 1.3 Total $ 575.6 $ 229.3 $ 106.7 $ (0.7 ) $ 910.9 |
Revenue by geographic segments | The revenue of our geographic segments is set forth below: Three months ended March 31, 2018 2017 in millions C&W (a): Panama $ 149.2 $ 153.7 Jamaica 92.5 83.6 Networks & LatAm (b) 94.1 76.9 The Bahamas 64.1 72.0 Barbados 39.4 40.2 Trinidad and Tobago 40.7 42.8 Other (c) 105.5 106.4 Total C&W 585.5 575.6 Chile 263.8 229.3 Puerto Rico 61.8 106.7 Intersegment eliminations (1.2 ) (0.7 ) Total $ 909.9 $ 910.9 (a) Except as otherwise noted, the amounts presented for each C&W jurisdiction include revenue from residential and B2B operations. (b) The amounts represent wholesale services revenue from various jurisdictions across the Caribbean and Latin America, primarily related to the sale and lease of telecom capacity on C&W ’s sub-sea and terrestrial networks. (c) The amounts relate to a number of countries in which C&W has less significant operations, all but one of which are located in Latin America and the Caribbean. In addition, these amounts include C&W |
Basis of Presentation (Details)
Basis of Presentation (Details) | Dec. 29, 2017shares | Jul. 01, 2015 | Mar. 31, 2018marketcountry | Dec. 31, 2017 |
Class A | Spinoff | ||||
Basis of Presentation [Line Items] | ||||
Distribution shares issued (in shares) | 48,428,841 | |||
Class B | Spinoff | ||||
Basis of Presentation [Line Items] | ||||
Distribution shares issued (in shares) | 1,940,193 | |||
Class C | Spinoff | ||||
Basis of Presentation [Line Items] | ||||
Distribution shares issued (in shares) | 120,843,539 | |||
Residential and Business-to-Business Services | ||||
Basis of Presentation [Line Items] | ||||
Number of countries in which entity provides services | country | 18 | |||
C&W | Wholesale Communication Services | ||||
Basis of Presentation [Line Items] | ||||
Number of markets (over) | market | 40 | |||
Liberty Global | Class A | ||||
Basis of Presentation [Line Items] | ||||
Stock distribution ratio | 0.05 | |||
Liberty Global | Class B | ||||
Basis of Presentation [Line Items] | ||||
Stock distribution ratio | 0.05 | |||
Liberty Global | Class C | ||||
Basis of Presentation [Line Items] | ||||
Stock distribution ratio | 0.05 | |||
Liberty Puerto Rico | ||||
Basis of Presentation [Line Items] | ||||
Percentage ownership in subsidiary | 60.00% | 60.00% | ||
C&W Panama | C&W | ||||
Basis of Presentation [Line Items] | ||||
Percentage ownership in subsidiary | 49.00% | |||
BTC | C&W | ||||
Basis of Presentation [Line Items] | ||||
Percentage ownership in subsidiary | 49.00% | |||
C&W Jamaica | ||||
Basis of Presentation [Line Items] | ||||
Percentage ownership in subsidiary | 91.70% | 82.00% |
Accounting Changes and Recent36
Accounting Changes and Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
ASSETS | ||||
Other current assets | $ 245.7 | $ 238.7 | $ 222.9 | |
Other assets, net | 579.4 | 533.3 | 517.7 | |
Liabilities: | ||||
Deferred revenue | 159.3 | 156.7 | 143.4 | |
Other long-term liabilities | 783.1 | 723.4 | 697.8 | |
Equity: | ||||
Equity | 4,596.9 | 4,690.6 | ||
Equity | (7.5) | |||
Statement of Operations | ||||
Revenue | 909.9 | $ 910.9 | ||
Operating costs and expenses: | ||||
Operating costs and expenses – selling, general and administrative | 193.3 | 176.4 | ||
Non-operating expense – interest expense | 102.5 | 94.3 | ||
Income tax expense | 16.8 | 23.1 | ||
Net loss | 54.3 | (10.6) | ||
Change in operating cash flows | 163.2 | 75 | ||
Change in financing cash flows | (11.8) | 34.5 | ||
Change in investing cash flows | (187.8) | (127) | ||
Restricted cash | 21 | 38 | ||
Increase to non-operating expense | 135.8 | 101.1 | ||
Accounting Standards Update 2017-07 | Restatement Adjustment | ||||
Operating costs and expenses: | ||||
Increase to non-operating expense | 3 | 3 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Statement of Operations | ||||
Revenue | 909 | |||
Operating costs and expenses: | ||||
Operating costs and expenses – selling, general and administrative | 193.6 | |||
Non-operating expense – interest expense | 98.3 | |||
Income tax expense | 17.3 | |||
Net loss | 51.8 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
ASSETS | ||||
Other current assets | 15.8 | |||
Other assets, net | 15.6 | |||
Liabilities: | ||||
Deferred revenue | 13.3 | |||
Other long-term liabilities | 25.6 | |||
Statement of Operations | ||||
Revenue | 0.9 | |||
Operating costs and expenses: | ||||
Operating costs and expenses – selling, general and administrative | (0.3) | |||
Non-operating expense – interest expense | 4.2 | |||
Income tax expense | (0.5) | |||
Net loss | 2.5 | |||
Accounting Standards Update 2016-18 | ||||
Operating costs and expenses: | ||||
Change in operating cash flows | (1) | |||
Change in financing cash flows | 3 | |||
Change in investing cash flows | $ 6 | |||
Accumulated deficit | ||||
Equity: | ||||
Equity | (1,066.3) | (1,021.8) | (1,010.7) | |
Equity | (11.1) | |||
Operating costs and expenses: | ||||
Net loss | 44.5 | |||
Non-controlling interests | ||||
Equity: | ||||
Equity | 1,350.2 | $ 1,364.6 | 1,361 | |
Equity | $ 3.6 | |||
Operating costs and expenses: | ||||
Net loss | $ 9.8 |
Summary of Changes in Signifi37
Summary of Changes in Significant Accounting Policies (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | |||
Contract assets | $ 13 | $ 12 | |
Deferred contract costs | 9 | 10 | |
Deferred revenue | $ 417 | $ 397 | |
Deferred revenue recorded | $ 19 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions, ₡ in Billions | Feb. 12, 2018CRC (₡) | Feb. 12, 2018USD ($) | Apr. 01, 2017USD ($) |
Cabletica | |||
Business Acquisition [Line Items] | |||
Percent of interests acquired | 80.00% | 80.00% | |
Cash payment to acquire business | ₡ 143 | $ 252 | |
Noncontrolling ownership | 20.00% | 20.00% | |
C&W Carve-out | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price | $ 86 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Current | $ 16.5 | $ 2.9 |
Long-term | 101 | 38.4 |
Total | 117.5 | 41.3 |
Liability: | ||
Current | 75.5 | 42.2 |
Long-term | 125.2 | 51.9 |
Total | 200.7 | 94.1 |
Cross-currency and interest rate derivative contracts | ||
Assets: | ||
Current | 16.5 | 2.9 |
Long-term | 100.6 | 38.4 |
Total | 117.1 | 41.3 |
Liability: | ||
Current | 62.1 | 29.4 |
Long-term | 125.2 | 51.9 |
Total | 187.3 | 81.3 |
Foreign currency forward contracts | ||
Assets: | ||
Current | 0 | 0 |
Long-term | 0.4 | 0 |
Total | 0.4 | 0 |
Liability: | ||
Current | 13.4 | 12.8 |
Long-term | 0 | 0 |
Total | $ 13.4 | $ 12.8 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Exposure to counterparty credit risk | $ 54 | |
Cross currency interest rate contract - credit risk valuation adjustments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on credit risk derivatives | (12) | $ 7 |
Foreign currency forward contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative | 228 | |
Basis Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative | $ 3,750 | |
Weighted average remaining life | 1 year 2 months 12 days | |
Interest Rate Cap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative | $ 436 |
Derivative Instruments - Realiz
Derivative Instruments - Realized and Unrealized Gains (Losses) on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net | $ (41.5) | $ (27.3) |
Cross-currency and interest rate derivative contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net | (38.9) | (25.5) |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net | $ (2.6) | $ (1.8) |
Derivative Instruments - Net Ca
Derivative Instruments - Net Cash Received (Paid) Related to Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Operating activities | $ (11.7) | $ (10.7) |
Investing activities | (1.7) | (1.2) |
Total | $ (13.4) | $ (11.9) |
Derivative Instruments - Cross-
Derivative Instruments - Cross-currency Derivative Contracts (Details) - 3 months ended Mar. 31, 2018 £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | GBP (£) | JMD ($) | CLP ($) | COP ($) | USD ($) |
C&W | Cross-Currency Swap 1 | |||||
Derivative [Line Items] | |||||
Weighted average remaining life | 4 years 9 months 18 days | ||||
C&W | Cross-Currency Swap 2 | |||||
Derivative [Line Items] | |||||
Weighted average remaining life | 4 years 3 months 18 days | ||||
C&W | Cross-Currency Swap 3 | |||||
Derivative [Line Items] | |||||
Weighted average remaining life | 1 year | ||||
VTR Finance | Cross-Currency Swap 4 | |||||
Derivative [Line Items] | |||||
Weighted average remaining life | 4 years 2 months 12 days | ||||
Notional amount due from counterparty | C&W | Cross-Currency Swap 1 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | $ 108.3 | ||||
Notional amount due from counterparty | C&W | Cross-Currency Swap 2 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | 35.4 | ||||
Notional amount due from counterparty | C&W | Cross-Currency Swap 3 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | £ | £ 146.7 | ||||
Notional amount due from counterparty | VTR Finance | Cross-Currency Swap 4 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | 1,400 | ||||
Notional amount due to counterparty | C&W | Cross-Currency Swap 1 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | $ 13,817.5 | ||||
Notional amount due to counterparty | C&W | Cross-Currency Swap 2 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | $ 106,000 | ||||
Notional amount due to counterparty | C&W | Cross-Currency Swap 3 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | $ 194.3 | ||||
Notional amount due to counterparty | VTR Finance | Cross-Currency Swap 4 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | $ 951,390 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Derivative Contracts and Basis Swaps (Details) - Interest Rate Swap $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
C&W | |
Derivative [Line Items] | |
Notional amount of derivative | $ 2,975 |
Weighted average remaining life | 6 years 1 month 6 days |
Liberty Puerto Rico | |
Derivative [Line Items] | |
Notional amount of derivative | $ 675 |
Weighted average remaining life | 3 years |
Derivative Instruments - Impact
Derivative Instruments - Impact of Derivative Instruments on Borrowing Costs (Details) | Mar. 31, 2018 |
Derivative [Line Items] | |
Increase (decrease) to borrowing costs | 0.22% |
C&W | |
Derivative [Line Items] | |
Increase (decrease) to borrowing costs | 0.43% |
VTR Finance | |
Derivative [Line Items] | |
Increase (decrease) to borrowing costs | (0.52%) |
Liberty Puerto Rico | |
Derivative [Line Items] | |
Increase (decrease) to borrowing costs | 0.44% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Level 3 | Derivative Financial Instruments, Liabilities | Sable Currency Swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative instrument liability | $ (27) | $ (22) | |
Net gains (losses) included in earnings | (5) | $ (4) | |
Level 1 | Reported Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments measured at fair value | $ 33 | $ 37 |
Long-lived Assets - Goodwill (D
Long-lived Assets - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $ 5,673.6 |
Foreign currency translation adjustments | (10) |
Goodwill ending balance | 5,663.6 |
C&W | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 4,962.5 |
Foreign currency translation adjustments | (18.3) |
Goodwill ending balance | 4,944.2 |
VTR | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 433.4 |
Foreign currency translation adjustments | 8.3 |
Goodwill ending balance | 441.7 |
Liberty Puerto Rico | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 277.7 |
Foreign currency translation adjustments | 0 |
Goodwill ending balance | $ 277.7 |
Long-lived Assets - Property an
Long-lived Assets - Property and Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 6,824.6 | $ 6,567.5 | |
Accumulated depreciation | (2,588.4) | (2,398.3) | |
Total | 4,236.2 | 4,169.2 | |
Non-cash increases related to vendor financing arrangements | 20.7 | $ 14.1 | |
Distribution systems | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4,047.2 | 3,878.4 | |
Customer premises equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,438.8 | 1,382.8 | |
Support equipment, buildings and land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,338.6 | $ 1,306.3 |
Long-lived Assets - Intangible
Long-lived Assets - Intangible Assets Subject to Amortization, Net (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Gross carrying amount | $ 1,643.5 | $ 1,614.9 |
Accumulated amortization | (391.9) | (298.7) |
Total | 1,251.6 | 1,316.2 |
Customer relationships | ||
Gross carrying amount | 1,459.3 | 1,415.1 |
Accumulated amortization | (374.6) | (284.2) |
Licenses and other | ||
Gross carrying amount | 184.2 | 199.8 |
Accumulated amortization | $ (17.3) | $ (14.5) |
Debt and Capital Lease Obliga50
Debt and Capital Lease Obligations - Components of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.00% | |
Unused borrowing capacity | $ 979.4 | |
Estimated fair value | 6,508.5 | $ 6,534.9 |
Total debt before premiums, discounts, and deferred financing costs | 6,423.4 | 6,380.5 |
Premiums, discounts and deferred financing costs, net | (20.8) | (26.5) |
Total carrying amount of debt | 6,402.6 | 6,354 |
Capital lease obligations | 16.8 | 17.5 |
Total debt and capital lease obligations | 6,419.4 | 6,371.5 |
Current maturities of debt and capital lease obligations | (212.3) | (263.3) |
Long-term debt and capital lease obligations | $ 6,207.1 | 6,108.2 |
Line of Credit | C&W Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.95% | |
Unused borrowing capacity | $ 746.5 | |
Estimated fair value | 2,243.7 | 2,216.4 |
Total debt before premiums, discounts, and deferred financing costs | $ 2,235.9 | 2,212.2 |
Line of Credit | VTR Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 0.00% | |
Unused borrowing capacity | $ 232.9 | |
Estimated fair value | 0 | 0 |
Total debt before premiums, discounts, and deferred financing costs | $ 0 | 0 |
Line of Credit | LPR Bank Facilit | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.52% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 951.1 | 951.8 |
Total debt before premiums, discounts, and deferred financing costs | $ 982.5 | 982.5 |
Senior Notes | C&W Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 7.09% | |
Estimated fair value | $ 1,712.3 | 1,749.7 |
Total debt before premiums, discounts, and deferred financing costs | $ 1,655.9 | 1,648.4 |
Medium-term Notes | VTR Finance Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.88% | |
Estimated fair value | $ 1,452.3 | 1,479.6 |
Total debt before premiums, discounts, and deferred financing costs | $ 1,400 | 1,400 |
Unsecured Debt | Vendor financing | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.43% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 149.1 | 137.4 |
Total debt before premiums, discounts, and deferred financing costs | $ 149.1 | $ 137.4 |
Debt and Capital Lease Obliga51
Debt and Capital Lease Obligations - Components of Debt - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018CLP ($) | Mar. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 6.30% | 6.30% | ||
Line of Credit | VTR Dollar Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Facility amount | $ 160,000,000 | |||
Line of Credit | VTR Peso Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Facility amount | $ 44,000,000,000 | $ 73,000,000 | ||
Unsecured Debt | Vendor Financing Obligations | ||||
Debt Instrument [Line Items] | ||||
General term of vendor financing arrangements for amounts due | 1 year | |||
Operating expenses financed by intermediary | $ 32,000,000 | $ 10,000,000 |
Debt and Capital Lease Obliga52
Debt and Capital Lease Obligations - 2018 Financing Transactions (Details) - USD ($) | Feb. 07, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 07, 2018 | Jan. 06, 2018 |
Debt Instrument [Line Items] | |||||
Loss on debt modification and extinguishment | $ 13,000,000 | $ 0 | |||
C&W Financing Transactions | |||||
Debt Instrument [Line Items] | |||||
Loss on debt modification and extinguishment | $ 13,000,000 | ||||
Subordinated Debt | C&W Panama Term Loan due January 2023 | |||||
Debt Instrument [Line Items] | |||||
Original issue amount | $ 100,000,000 | ||||
Stated interest rate of debt | 4.35% | ||||
Medium-term Notes | C&W Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Original issue amount | $ 1,875,000,000 | ||||
Original issue price | 99.875% | ||||
Medium-term Notes | C&W Term Loan Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.25% | ||||
Floor interest rate | 0.00% | ||||
Line of Credit | C&W Term Loan B-3 Facility | |||||
Debt Instrument [Line Items] | |||||
Facility amount | $ 1,875,000,000 | ||||
Line of Credit | C&W Term Loan B-3 Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.50% | ||||
Line of Credit | C&W Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Facility amount | $ 625,000,000 | ||||
Line of Credit | C&W Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.25% | ||||
Line of Credit | C&W Class B Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Facility amount | $ 625,000,000 | ||||
Medium-term Notes | C&W Term Loan B-3 Facility | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of debt | $ 1,825,000,000 | ||||
Revolving Credit Facility | C&W Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of debt | $ 40,000,000 |
Debt and Capital Lease Obliga53
Debt and Capital Lease Obligations - C&W Credit Facilities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Outstanding principal amount | $ 6,423,400,000 | $ 6,380,500,000 |
Line of Credit | C&W Credit Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding principal amount | 2,235,900,000 | $ 2,212,200,000 |
Unused borrowing capacity | 746,500,000 | |
Carrying value | 2,229,100,000 | |
Line of Credit | C&W Term Loan B-3 Facility | ||
Debt Instrument [Line Items] | ||
Facility amount | 1,875,000,000 | |
Outstanding principal amount | 1,875,000,000 | |
Unused borrowing capacity | 0 | |
Carrying value | $ 1,869,200,000 | |
Line of Credit | C&W Term Loan B-3 Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
Line of Credit | C&W Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Facility amount | $ 625,000,000 | |
Outstanding principal amount | 10,000,000 | |
Unused borrowing capacity | 615,000,000 | |
Carrying value | $ 10,000,000 | |
Line of Credit | C&W Revolving Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.25% | |
Line of Credit | C&W Regional Facilities | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | |
Facility amount | $ 482,400,000 | |
Outstanding principal amount | 350,900,000 | |
Unused borrowing capacity | 131,500,000 | |
Carrying value | $ 349,900,000 |
Debt and Capital Lease Obliga54
Debt and Capital Lease Obligations - Maturities of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2018 (remainder of year) | $ 173.2 | |
2,019 | 257.8 | |
2,020 | 64.9 | |
2,021 | 125 | |
2,022 | 1,615.2 | |
2,023 | 206.3 | |
Thereafter | 3,981 | |
Total debt maturities | 6,423.4 | $ 6,380.5 |
Premiums, discounts and deferred financing costs, net | (20.8) | (26.5) |
Total carrying amount of debt | 6,402.6 | $ 6,354 |
Current portion | 200.2 | |
Noncurrent portion | 6,202.4 | |
C&W | ||
Debt Instrument [Line Items] | ||
2018 (remainder of year) | 94.6 | |
2,019 | 234.9 | |
2,020 | 24.9 | |
2,021 | 125 | |
2,022 | 765.2 | |
2,023 | 113.8 | |
Thereafter | 2,581 | |
Total debt maturities | 3,939.4 | |
Premiums, discounts and deferred financing costs, net | 11.2 | |
Total carrying amount of debt | 3,950.6 | |
Current portion | 98.6 | |
Noncurrent portion | 3,852 | |
VTR | ||
Debt Instrument [Line Items] | ||
2018 (remainder of year) | 78.6 | |
2,019 | 22.9 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 1,400 | |
Total debt maturities | 1,501.5 | |
Premiums, discounts and deferred financing costs, net | (21.3) | |
Total carrying amount of debt | 1,480.2 | |
Current portion | 101.6 | |
Noncurrent portion | 1,378.6 | |
Liberty Puerto Rico | ||
Debt Instrument [Line Items] | ||
2018 (remainder of year) | 0 | |
2,019 | 0 | |
2,020 | 40 | |
2,021 | 0 | |
2,022 | 850 | |
2,023 | 92.5 | |
Thereafter | 0 | |
Total debt maturities | 982.5 | |
Premiums, discounts and deferred financing costs, net | (10.7) | |
Total carrying amount of debt | 971.8 | |
Current portion | 0 | |
Noncurrent portion | $ 971.8 |
Debt and Capital Lease Obliga55
Debt and Capital Lease Obligations - Capital Lease Obligations (Details) $ in Millions | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
2018 (remainder of year) | $ 12.3 |
2,019 | 3.5 |
2,020 | 1.5 |
2,021 | 0.1 |
Total principal and interest payments | 17.4 |
Amounts representing interest | (0.6) |
Present value of net minimum lease payments | 16.8 |
Current portion | 12.1 |
Noncurrent portion | 4.7 |
C&W | |
Debt Instrument [Line Items] | |
2018 (remainder of year) | 12.1 |
2,019 | 3.1 |
2,020 | 1.4 |
2,021 | 0.1 |
Total principal and interest payments | 16.7 |
Amounts representing interest | (0.6) |
Present value of net minimum lease payments | 16.1 |
Current portion | 11.8 |
Noncurrent portion | 4.3 |
VTR | |
Debt Instrument [Line Items] | |
2018 (remainder of year) | 0.2 |
2,019 | 0.4 |
2,020 | 0.1 |
2,021 | 0 |
Total principal and interest payments | 0.7 |
Amounts representing interest | 0 |
Present value of net minimum lease payments | 0.7 |
Current portion | 0.3 |
Noncurrent portion | 0.4 |
Liberty Puerto Rico | |
Debt Instrument [Line Items] | |
2018 (remainder of year) | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Total principal and interest payments | 0 |
Amounts representing interest | 0 |
Present value of net minimum lease payments | 0 |
Current portion | 0 |
Noncurrent portion | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ (16.8) | $ (23.1) |
Effective income tax rate | (44.80%) | 68.50% |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||
May 08, 2018USD ($) | Mar. 31, 2018JMD ($)$ / sharesshares | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Class of Stock [Line Items] | |||||
Aggregate purchase price | $ 18.6 | $ 0 | |||
Liberty Puerto Rico | |||||
Class of Stock [Line Items] | |||||
Capital contributions affiliates | 25 | ||||
Capital contributions from parent | 15 | ||||
Liberty Puerto Rico | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Capital contributions affiliates | $ 20 | ||||
Capital contributions from parent | 12 | ||||
Liberty Puerto Rico | Searchlight | |||||
Class of Stock [Line Items] | |||||
Capital contributions affiliates | 10 | ||||
Liberty Puerto Rico | Searchlight | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Capital contributions affiliates | 8 | ||||
Liberty Puerto Rico | |||||
Class of Stock [Line Items] | |||||
Percentage ownership in subsidiary | 60.00% | 60.00% | |||
C&W Jamaica | |||||
Class of Stock [Line Items] | |||||
Percentage ownership in subsidiary | 91.70% | 82.00% | |||
Additional interest acquire in subsidiary (in shares) | shares | 1,629,734,373 | ||||
Additional interest acquired in subsidiary (in jmd per share) | $ / shares | $ 1.45 | ||||
Aggregate purchase price | $ 2,363 | 19 | |||
Transaction fees | $ 1 | ||||
Line of Credit | LPR Credit Agreements | |||||
Class of Stock [Line Items] | |||||
Equity commitment obligation | $ 36 | ||||
Line of Credit | LPR Credit Agreements | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Equity commitment obligation | 9 | ||||
Line of Credit | Liberty Puerto Rico | LPR Credit Agreements | |||||
Class of Stock [Line Items] | |||||
Shareholders' equity commitment obligation | $ 60 | ||||
Line of Credit | Liberty Puerto Rico | LPR Credit Agreements | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Shareholders' equity commitment obligation | $ 15 |
Related-party Transactions - Sc
Related-party Transactions - Schedules (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Assets: | |||
Operating income | $ 98.3 | $ 134.8 | |
Allocated tax expense | (16.8) | (23.1) | |
Net earnings (loss) | (54.3) | 10.6 | |
Affiliated Entity | |||
Assets: | |||
Current assets – related-party receivables | 3.8 | $ 4.2 | |
Income tax receivable | 3.8 | 0 | |
Total assets | 7.6 | 4.2 | |
Liabilities – Accounts payable and other accrued and current liabilities | $ 5.3 | $ 1.4 | |
Revenue | 4 | ||
Operating income | (2.3) | ||
Interest income | 1.5 | ||
Allocated tax expense | (1.8) | ||
Net earnings (loss) | (2.6) | ||
Affiliated Entity | Allocated share-based compensation expense | |||
Assets: | |||
Expenses | (3.3) | ||
Affiliated Entity | Charges from Liberty Global | |||
Assets: | |||
Expenses | $ (3) |
Related-party Transactions - Na
Related-party Transactions - Narrative (Details) - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2016 | |
Liberty Global | ||
Related Party Transaction [Line Items] | ||
Services agreement term | 2 years | |
Services agreement renewal term | 1 year | |
Liberty Global | Split-Off Agreements Charges | ||
Related Party Transaction [Line Items] | ||
Expenses | $ 2 | |
New Cayman | ||
Related Party Transaction [Line Items] | ||
Receivable interest rate | 8.00% |
Restructuring Liabilities (Deta
Restructuring Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring liability at beginning of year | $ 31.6 | |
Restructuring charges | 25.7 | |
Cash paid | (6.8) | |
Foreign currency translation adjustments and other | 0.4 | |
Restructuring liability at end of year | 50.9 | |
Current portion | $ 36.7 | |
Noncurrent portion | 14.2 | |
Total | 31.6 | 50.9 |
Employee severance and termination | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability at beginning of year | 6.2 | |
Restructuring charges | 24.1 | |
Cash paid | (5.5) | |
Foreign currency translation adjustments and other | 0 | |
Restructuring liability at end of year | 24.8 | |
Current portion | 24.3 | |
Noncurrent portion | 0.5 | |
Total | 6.2 | 24.8 |
Contract termination and other | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability at beginning of year | 25.4 | |
Restructuring charges | 1.6 | |
Cash paid | (1.3) | |
Foreign currency translation adjustments and other | 0.4 | |
Restructuring liability at end of year | 26.1 | |
Current portion | 12.4 | |
Noncurrent portion | 13.7 | |
Total | $ 25.4 | $ 26.1 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 6.5 | $ 5.6 |
Other operating expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 0.1 | 0.5 |
SG&A expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 6.4 | $ 5.1 |
Share-based Compensation - SARs
Share-based Compensation - SARs (Details) - SARs | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Class A | |
Number of shares | |
Outstanding (in shares) | shares | 1,274,964 |
Exercisable (in shares) | shares | 336,956 |
Weighted average exercise price | |
Outstanding (in dollars per share) | $ / shares | $ 26.50 |
Exercisable (in dollars per share) | $ / shares | $ 30.95 |
Weighted average remaining contractual term, outstanding | 5 years 8 months 12 days |
Weighted average remaining contractual term, Exercisable | 4 years 6 months |
Class C | |
Number of shares | |
Outstanding (in shares) | shares | 2,603,506 |
Exercisable (in shares) | shares | 737,051 |
Weighted average exercise price | |
Outstanding (in dollars per share) | $ / shares | $ 26.84 |
Exercisable (in dollars per share) | $ / shares | $ 31.17 |
Weighted average remaining contractual term, outstanding | 5 years 7 months 6 days |
Weighted average remaining contractual term, Exercisable | 4 years 3 months 18 days |
Share-based Compensation - RSUs
Share-based Compensation - RSUs and PSUs (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
RSUs | Class A | |
Number of shares | |
Outstanding (in shares) | 139,657 |
Weighted average remaining contractual term, in years | |
Outstanding | 2 years 4 months 24 days |
RSUs | Class C | |
Number of shares | |
Outstanding (in shares) | 288,522 |
Weighted average remaining contractual term, in years | |
Outstanding | 2 years 3 months 18 days |
PSUs | Class A | |
Number of shares | |
Outstanding (in shares) | 173,849 |
Weighted average remaining contractual term, in years | |
Outstanding | 1 year 6 months |
PSUs | Class C | |
Number of shares | |
Outstanding (in shares) | 340,291 |
Weighted average remaining contractual term, in years | |
Outstanding | 1 year 6 months |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - SARs | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Class A | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | shares | 594,267 |
Granted (in dollars per share) | $ / shares | $ 21.58 |
Class C | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | shares | 1,188,533 |
Granted (in dollars per share) | $ / shares | $ 21.39 |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Weighted average shares outstanding - basic and dilutive (in shares) | 171,231,111 | 172,743,854 |
Options, SARs and RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded (in shares) | 10,500,000 | |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded (in shares) | 1,200,000 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) $ in Millions | Mar. 31, 2018USD ($) |
Purchase commitments | |
Remainder of 2018 | $ 110.7 |
2,019 | 27.6 |
2,020 | 9.6 |
2,021 | 1.1 |
2,022 | 1.1 |
2,023 | 0.6 |
Thereafter | 0 |
Total | 150.7 |
Operating leases | |
Remainder of 2018 | 22.5 |
2,019 | 20.6 |
2,020 | 16.9 |
2,021 | 13.4 |
2,022 | 11.4 |
2,023 | 9.1 |
Thereafter | 17.3 |
Total | 111.2 |
Other commitments | |
Remainder of 2018 | 8.9 |
2,019 | 2.8 |
2,020 | 1.6 |
2,021 | 1.4 |
2,022 | 1.3 |
2,023 | 1.3 |
Thereafter | 10 |
Total | 27.3 |
Total | |
Remainder of 2018 | 344.6 |
2,019 | 183.5 |
2,020 | 78.4 |
2,021 | 52.4 |
2,022 | 30.6 |
2,023 | 26.4 |
Thereafter | 52.3 |
Total | 768.2 |
Programming commitments | |
Programming and network commitments | |
Remainder of 2018 | 120.3 |
2,019 | 58.3 |
2,020 | 24.4 |
2,021 | 18 |
2,022 | 2.2 |
2,023 | 1.5 |
Thereafter | 0.7 |
Total | 225.4 |
Network and connectivity commitments | |
Programming and network commitments | |
Remainder of 2018 | 82.2 |
2,019 | 74.2 |
2,020 | 25.9 |
2,021 | 18.5 |
2,022 | 14.6 |
2,023 | 13.9 |
Thereafter | 24.3 |
Total | $ 253.6 |
Commitments and Contingencies67
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Programming and copyright costs | $ 96 | $ 102 | |
Indemnification agreement | |||
Loss Contingencies [Line Items] | |||
Indemnifications provided (up to) | $ 300 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Millions | Jan. 01, 2017USD ($) | Mar. 31, 2018USD ($)market | Mar. 31, 2017USD ($) |
Segment Reporting Information [Line Items] | |||
Increase to non-operating expense | $ 135.8 | $ 101.1 | |
Percentage of minority interest revenues and expenses included in net earnings attributable to noncontrolling interest | 100.00% | ||
C&W | Wholesale Communication Services | |||
Segment Reporting Information [Line Items] | |||
Number of markets (over) | market | 40 | ||
Affiliated Entity | Charges from Liberty Global | |||
Segment Reporting Information [Line Items] | |||
Expenses from transactions with related parties | 3 | ||
Liberty Global | Affiliated Entity | Charges from Liberty Global | |||
Segment Reporting Information [Line Items] | |||
Expenses from transactions with related parties | $ 12 | 3 | |
Accounting Standards Update 2017-07 | Restatement Adjustment | |||
Segment Reporting Information [Line Items] | |||
Increase to non-operating expense | $ 3 | $ 3 |
Segment Reporting - Performance
Segment Reporting - Performance Measures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 909.9 | $ 910.9 |
Adjusted OIBDA | 340.8 | 347.7 |
Operating Segments | C&W | ||
Segment Reporting Information [Line Items] | ||
Revenue | 585.5 | 575.6 |
Adjusted OIBDA | 229.1 | 209.9 |
Operating Segments | VTR | ||
Segment Reporting Information [Line Items] | ||
Revenue | 263.8 | 229.3 |
Adjusted OIBDA | 105 | 91.6 |
Operating Segments | Liberty Puerto Rico | ||
Segment Reporting Information [Line Items] | ||
Revenue | 61.8 | 106.7 |
Adjusted OIBDA | 18 | 51.3 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
Adjusted OIBDA | (11.3) | (5.1) |
Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (1.2) | (0.7) |
Adjusted OIBDA | $ 0 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Cash Flow to Earnings from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | ||
Total Adjusted OIBDA | $ 340.8 | $ 347.7 |
Share-based compensation expense | (6.5) | (5.6) |
Depreciation and amortization | (202.3) | (193.9) |
Impairment, restructuring and other operating items, net | (33.7) | (13.4) |
Operating income | 98.3 | 134.8 |
Interest expense | (102.5) | (94.3) |
Realized and unrealized losses on derivative instruments, net | (41.5) | (27.3) |
Foreign currency transaction gains, net | 15.9 | 14.5 |
Loss on debt modification and extinguishment | (13) | 0 |
Other income, net | 5.3 | 6 |
Earnings (loss) before income taxes | $ (37.5) | $ 33.7 |
Segment Reporting - Property an
Segment Reporting - Property and Equipment Additions of our Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | $ 194 | $ 139.2 |
Assets acquired under capital-related vendor financing arrangements | (20.7) | (14.1) |
Assets acquired under capital leases | (0.6) | (0.9) |
Changes in current liabilities related to capital expenditures | 15.5 | 0.2 |
Total capital expenditures | 188.2 | 124.4 |
C&W | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | 67.2 | 60.5 |
VTR | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | 57 | 55.4 |
Liberty Puerto Rico | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | $ 69.8 | $ 23.3 |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Major Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Principal Transaction Revenue [Line Items] | ||
Revenue | $ 909.9 | $ 910.9 |
Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 633.7 | 649.5 |
Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 437 | 452.9 |
Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 406.3 | 416.1 |
Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 165.7 | 170.6 |
Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 175.6 | 175.5 |
Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 65 | 70 |
Non-subscription revenue (b) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 30.7 | 36.8 |
Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 196.7 | 196.6 |
Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 171.4 | 174.4 |
Non-subscription revenue (c) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 25.3 | 22.2 |
Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 275.5 | 260.1 |
Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 9.9 | 9.4 |
Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 206 | 204.3 |
Sub-sea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 59.6 | 46.4 |
Other revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0.7 | 1.3 |
Operating Segments | C&W | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 585.5 | 575.6 |
Operating Segments | C&W | Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 322 | 327.8 |
Operating Segments | C&W | Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 144.8 | 146.1 |
Operating Segments | C&W | Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 123.3 | 122.6 |
Operating Segments | C&W | Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 42.7 | 40.5 |
Operating Segments | C&W | Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 53.7 | 52.8 |
Operating Segments | C&W | Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 26.9 | 29.3 |
Operating Segments | C&W | Non-subscription revenue (b) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 21.5 | 23.5 |
Operating Segments | C&W | Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 177.2 | 181.7 |
Operating Segments | C&W | Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 155.1 | 161.8 |
Operating Segments | C&W | Non-subscription revenue (c) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 22.1 | 19.9 |
Operating Segments | C&W | Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 263.5 | 247.8 |
Operating Segments | C&W | Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | C&W | Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 203.9 | 201.4 |
Operating Segments | C&W | Sub-sea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 59.6 | 46.4 |
Operating Segments | C&W | Other revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | VTR | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 263.8 | 229.3 |
Operating Segments | VTR | Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 257.9 | 226.3 |
Operating Segments | VTR | Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 238.4 | 211.4 |
Operating Segments | VTR | Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 230.9 | 204 |
Operating Segments | VTR | Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 99.7 | 87.4 |
Operating Segments | VTR | Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 96.6 | 82.3 |
Operating Segments | VTR | Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 34.6 | 34.3 |
Operating Segments | VTR | Non-subscription revenue (b) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 7.5 | 7.4 |
Operating Segments | VTR | Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 19.5 | 14.9 |
Operating Segments | VTR | Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 16.3 | 12.6 |
Operating Segments | VTR | Non-subscription revenue (c) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 3.2 | 2.3 |
Operating Segments | VTR | Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 5.9 | 3 |
Operating Segments | VTR | Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 5.6 | 2.7 |
Operating Segments | VTR | Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0.3 | 0.3 |
Operating Segments | VTR | Sub-sea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | VTR | Other revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | Liberty Puerto Rico | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 61.8 | 106.7 |
Operating Segments | Liberty Puerto Rico | Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 53.8 | 95.4 |
Operating Segments | Liberty Puerto Rico | Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 53.8 | 95.4 |
Operating Segments | Liberty Puerto Rico | Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 52.1 | 89.5 |
Operating Segments | Liberty Puerto Rico | Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 23.3 | 42.7 |
Operating Segments | Liberty Puerto Rico | Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 25.3 | 40.4 |
Operating Segments | Liberty Puerto Rico | Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 3.5 | 6.4 |
Operating Segments | Liberty Puerto Rico | Non-subscription revenue (b) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 1.7 | 5.9 |
Operating Segments | Liberty Puerto Rico | Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Non-subscription revenue (c) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 7.3 | 10 |
Operating Segments | Liberty Puerto Rico | Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 4.3 | 6.7 |
Operating Segments | Liberty Puerto Rico | Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 3 | 3.3 |
Operating Segments | Liberty Puerto Rico | Sub-sea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Other revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0.7 | 1.3 |
Intersegment eliminations | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | (1.2) | (0.7) |
Intersegment eliminations | Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Non-subscription revenue (b) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Non-subscription revenue (c) | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | (1.2) | (0.7) |
Intersegment eliminations | Subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | (1.2) | (0.7) |
Intersegment eliminations | Sub-sea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Other revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | $ 0 | $ 0 |
Segment Reporting - Geographic
Segment Reporting - Geographic Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 909.9 | $ 910.9 |
Operating Segments | Panama | ||
Segment Reporting Information [Line Items] | ||
Revenue | 149.2 | 153.7 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Revenue | 92.5 | 83.6 |
Operating Segments | Networks | ||
Segment Reporting Information [Line Items] | ||
Revenue | 94.1 | 76.9 |
Operating Segments | The Bahamas | ||
Segment Reporting Information [Line Items] | ||
Revenue | 64.1 | 72 |
Operating Segments | Barbados | ||
Segment Reporting Information [Line Items] | ||
Revenue | 39.4 | 40.2 |
Operating Segments | Trinidad and Tobago | ||
Segment Reporting Information [Line Items] | ||
Revenue | 40.7 | 42.8 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 105.5 | 106.4 |
Operating Segments | Chile | ||
Segment Reporting Information [Line Items] | ||
Revenue | 263.8 | 229.3 |
Operating Segments | Puerto Rico | ||
Segment Reporting Information [Line Items] | ||
Revenue | 61.8 | 106.7 |
Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (1.2) | (0.7) |
C&W | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 585.5 | $ 575.6 |