Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38335 | |
Entity Registrant Name | Liberty Latin America Ltd. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-1386359 | |
Entity Address, Address Line One | 2 Church Street, | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM 11 | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 295-5950 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001712184 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Shares, par value $0.01 per share | |
Trading Symbol | LILA | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 48,992,012 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,933,386 | |
Class C | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class C Common Shares, par value $0.01 per share | |
Trading Symbol | LILAK | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 181,081,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,611.9 | $ 1,183.8 |
Trade receivables, net of allowances of $96.8 million and $87.3 million, respectively | 505.9 | 585.2 |
Prepaid expenses | 62.2 | 58.9 |
Other current assets, net | 225.6 | 227.3 |
Total current assets | 2,405.6 | 2,055.2 |
Goodwill | 4,503.7 | 4,906.4 |
Property and equipment, net | 4,149.8 | 4,301.1 |
Restricted cash | 1,369.9 | 1,272.2 |
Intangible assets subject to amortization, net | 825.5 | 969.2 |
Intangible assets not subject to amortization | 561.3 | 560.8 |
Other assets, net | 782.1 | 872.6 |
Total assets | 14,597.9 | 14,937.5 |
Current liabilities: | ||
Accounts payable | 269.6 | 346.6 |
Current portion of deferred revenue | 138 | 160.9 |
Current portion of debt and finance lease obligations | 284.4 | 180.2 |
Accrued capital expenditures | 47.9 | 72.1 |
Accrued interest | 118.9 | 132.6 |
Accrued payroll and employee benefits | 80.8 | 88.9 |
Other accrued and current liabilities | 645.5 | 594.7 |
Total current liabilities | 1,585.1 | 1,576 |
Long-term debt and finance lease obligations | 8,175.4 | 8,189.8 |
Deferred tax liabilities | 361.5 | 401.8 |
Deferred revenue | 187 | 210.9 |
Other long-term liabilities | 761.2 | 579.1 |
Total liabilities | 11,070.2 | 10,957.6 |
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 |
Treasury shares, at cost; 966,974 and nil shares, respectively | (9.5) | 0 |
Additional paid-in capital | 4,972.4 | 4,569.9 |
Accumulated deficit | (2,105.6) | (1,447.1) |
Accumulated other comprehensive loss, net of taxes | (83.2) | (14.8) |
Total Liberty Latin America shareholders | 2,776.4 | 3,109.8 |
Noncontrolling interests | 751.3 | 870.1 |
Total equity | 3,527.7 | 3,979.9 |
Total liabilities and equity | 14,597.9 | 14,937.5 |
Class A, $0.01 par value; 500,000,000 shares authorized; 49,186,678 and 48,892,862 shares issued and outstanding, respectively, at September 30, 2020 and 48,795,552 shares issued and outstanding at December, 31, 2019 | ||
Liberty Latin America shareholders: | ||
Common stock | 0.5 | 0.5 |
Class B, $0.01 par value; 50,000,000 shares authorized; 1,933,414 shares issued and outstanding at September 30, 2020 and 1,934,686 shares issued and outstanding at December 31, 2019 | ||
Liberty Latin America shareholders: | ||
Common stock | 0 | 0 |
Class C, $0.01 par value; 500,000,000 shares authorized; 181,099,655 and 180,426,497 shares issued and outstanding, respectively, at September 30, 2020 and 131,181,371 shares issued and outstanding at December 31, 2019 | ||
Liberty Latin America shareholders: | ||
Common stock | $ 1.8 | $ 1.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Trade receivables, net of allowance | $ 96.8 | $ 87.3 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury shares (in shares) | 966,974 | 0 |
Class A, $0.01 par value; 500,000,000 shares authorized; 49,186,678 and 48,892,862 shares issued and outstanding, respectively, at September 30, 2020 and 48,795,552 shares issued and outstanding at December, 31, 2019 | ||
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) | 49,186,678 | 48,795,552 |
Common stock, shares outstanding (in shares) | 48,892,862 | 48,795,552 |
Class B, $0.01 par value; 50,000,000 shares authorized; 1,933,414 shares issued and outstanding at September 30, 2020 and 1,934,686 shares issued and outstanding at December 31, 2019 | ||
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) | 1,933,414 | 1,934,686 |
Common stock, shares outstanding (in shares) | 1,933,414 | 1,934,686 |
Class C, $0.01 par value; 500,000,000 shares authorized; 181,099,655 and 180,426,497 shares issued and outstanding, respectively, at September 30, 2020 and 131,181,371 shares issued and outstanding at December 31, 2019 | ||
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) | 181,099,655 | 131,181,371 |
Common stock, shares outstanding (in shares) | 180,426,497 | 131,181,371 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 887.5 | $ 966.8 | $ 2,667.4 | $ 2,892.4 |
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below): | ||||
Programming and other direct costs of services | 189.7 | 215.7 | 580.2 | 664.1 |
Other operating costs and expenses | 365.6 | 386.5 | 1,105.8 | 1,140.6 |
Depreciation and amortization | 231.6 | 226 | 661.5 | 665.3 |
Impairment, restructuring and other operating items, net | 14 | 208.3 | 331.5 | 235.3 |
Operating costs and expenses (exclusive of depreciation and amortization) | 800.9 | 1,036.5 | 2,679 | 2,705.3 |
Operating income (loss) | 86.6 | (69.7) | (11.6) | 187.1 |
Non-operating income (expense): | ||||
Interest expense | (129.9) | (123.9) | (408.5) | (359.4) |
Realized and unrealized gains (losses) on derivative instruments, net | (78.1) | 51.4 | (239.7) | (96.6) |
Foreign currency transaction gains (losses), net | 30.1 | (110.8) | (115.1) | (98.1) |
Losses on debt modification and extinguishment | (41.7) | (3.5) | (45.1) | (13) |
Other income, net | 0.2 | 4.4 | 11.8 | 9.4 |
Non-operating income (expense) | (219.4) | (182.4) | (796.6) | (557.7) |
Loss before income taxes | (132.8) | (252.1) | (808.2) | (370.6) |
Income tax benefit | 42.8 | 182.4 | 33.4 | 148.5 |
Net loss | (90) | (69.7) | (774.8) | (222.1) |
Net loss attributable to noncontrolling interests | 5.4 | 105 | 116.5 | 99.7 |
Net earnings (loss) attributable to Liberty Latin America shareholders | $ (84.6) | $ 35.3 | $ (658.3) | $ (122.4) |
Basic and diluted net earnings (loss) per share attributable to Liberty Latin America shareholders (in dollars per share) | $ (0.46) | $ 0.19 | $ (3.59) | $ (0.66) |
Weighted average shares outstanding - basic (in shares) | 185,380,797 | 184,452,387 | 183,286,840 | 184,238,994 |
Weighted average shares outstanding - diluted (in shares) | 185,380,797 | 184,807,225 | 183,286,840 | 184,238,994 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (90) | $ (69.7) | $ (774.8) | $ (222.1) |
Other comprehensive earnings (loss), net of taxes: | ||||
Foreign currency translation adjustments | (27.4) | (6.8) | (67.8) | (32.5) |
Reclassification adjustments included in net earnings (loss) | 0.6 | (0.8) | (2.5) | (4.3) |
Pension-related adjustments and other, net | (0.5) | 3.2 | 1.1 | 1.3 |
Other comprehensive loss | (27.3) | (4.4) | (69.2) | (35.5) |
Comprehensive loss | (117.3) | (74.1) | (844) | (257.6) |
Comprehensive loss attributable to noncontrolling interests | 5.5 | 105.3 | 117.3 | 100.2 |
Comprehensive earnings (loss) attributable to Liberty Latin America shareholders | $ (111.8) | $ 31.2 | $ (726.7) | $ (157.4) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | UTS Acquisition | UTS NCI Acquisition | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Class C | Total Liberty Latin America shareholders | Total Liberty Latin America shareholdersUTS NCI Acquisition | Total Liberty Latin America shareholdersCumulative Effect, Period of Adoption, Adjustment | Total Liberty Latin America shareholdersCumulative Effect, Period of Adoption, Adjusted Balance | Common sharesClass A | Common sharesClass ACumulative Effect, Period of Adoption, Adjusted Balance | Common sharesClass B | Common sharesClass BCumulative Effect, Period of Adoption, Adjusted Balance | Common sharesClass C | Common sharesClass CCumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional paid-in capital | Additional paid-in capitalUTS NCI Acquisition | Additional paid-in capitalCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated deficit | Accumulated deficitCumulative Effect, Period of Adoption, Adjustment | Accumulated deficitCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated other comprehensive loss, net of taxes | Accumulated other comprehensive loss, net of taxesCumulative Effect, Period of Adoption, Adjusted Balance | Non-controlling interests | Non-controlling interestsUTS Acquisition | Non-controlling interestsUTS NCI Acquisition | Non-controlling interestsCumulative Effect, Period of Adoption, Adjustment | Non-controlling interestsCumulative Effect, Period of Adoption, Adjusted Balance |
Balance at Dec. 31, 2018 | $ 4,123.4 | $ 3,112.6 | $ 0.5 | $ 0 | $ 1.3 | $ 0 | $ 4,494.1 | $ (1,367) | $ (16.3) | $ 1,010.8 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Net loss | (222.1) | (122.4) | (122.4) | (99.7) | |||||||||||||||||||||||||||
Other comprehensive loss | (35.5) | (35) | (35) | (0.5) | |||||||||||||||||||||||||||
Impact of the Acquisitions | $ 11.6 | $ (11.6) | $ 0.1 | $ 0.1 | $ 11.6 | $ (11.7) | |||||||||||||||||||||||||
Distribution to noncontrolling interest owners | (2.6) | (2.6) | |||||||||||||||||||||||||||||
Conversion Option, net | 77.3 | 77.3 | 77.3 | ||||||||||||||||||||||||||||
Capped Calls | (45.6) | $ (46) | (45.6) | (45.6) | |||||||||||||||||||||||||||
Shared-based compensation | 37.1 | 37.1 | 37.1 | ||||||||||||||||||||||||||||
Other | (0.3) | (0.3) | |||||||||||||||||||||||||||||
Balance at Sep. 30, 2019 | 3,931.7 | 3,024.1 | 0.5 | 0 | 1.3 | 0 | 4,563 | (1,489.4) | (51.3) | 907.6 | |||||||||||||||||||||
Balance at Jun. 30, 2019 | 4,003.9 | 2,979.2 | 0.5 | 0 | 1.3 | 0 | 4,549.3 | (1,524.7) | (47.2) | 1,024.7 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Net loss | (69.7) | 35.3 | 35.3 | (105) | |||||||||||||||||||||||||||
Other comprehensive loss | (4.4) | (4.1) | (4.1) | (0.3) | |||||||||||||||||||||||||||
Impact of the Acquisitions | (11.6) | 0.1 | 0.1 | (11.7) | |||||||||||||||||||||||||||
Distribution to noncontrolling interest owners | (0.1) | (0.1) | |||||||||||||||||||||||||||||
Capped Calls | $ (46) | ||||||||||||||||||||||||||||||
Shared-based compensation | 12.9 | 12.9 | 12.9 | ||||||||||||||||||||||||||||
Other | 0.7 | 0.7 | 0.7 | ||||||||||||||||||||||||||||
Balance at Sep. 30, 2019 | 3,931.7 | 3,024.1 | 0.5 | 0 | 1.3 | 0 | 4,563 | (1,489.4) | (51.3) | 907.6 | |||||||||||||||||||||
Balance at Dec. 31, 2019 | 3,979.9 | $ 0 | $ 3,979.9 | 3,109.8 | $ (0.2) | $ 3,109.6 | 0.5 | $ 0.5 | 0 | $ 0 | 1.3 | $ 1.3 | 0 | $ 0 | 4,569.9 | $ 4,569.9 | (1,447.1) | $ (0.2) | $ (1,447.3) | (14.8) | $ (14.8) | 870.1 | $ 0.2 | $ 870.3 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Net loss | (774.8) | (658.3) | (658.3) | (116.5) | |||||||||||||||||||||||||||
Other comprehensive loss | (69.2) | (68.4) | (68.4) | (0.8) | |||||||||||||||||||||||||||
Repurchase of Liberty Latin America common shares | (9.5) | (9.5) | (9.5) | ||||||||||||||||||||||||||||
Issuance of Liberty Latin America common shares, net | 347.7 | 347.7 | 0.5 | 347.2 | |||||||||||||||||||||||||||
Shared-based compensation | 54.4 | 54.4 | 54.4 | ||||||||||||||||||||||||||||
Other | (0.8) | (0.9) | (0.9) | (1.7) | |||||||||||||||||||||||||||
Balance at Sep. 30, 2020 | 3,527.7 | 2,776.4 | 0.5 | 0 | 1.8 | (9.5) | 4,972.4 | (2,105.6) | (83.2) | 751.3 | |||||||||||||||||||||
Balance at Jun. 30, 2020 | 3,279.9 | 2,521.5 | 0.5 | 0 | 1.3 | (9.5) | 4,606.2 | (2,021) | (56) | 758.4 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Net loss | (90) | (84.6) | (84.6) | (5.4) | |||||||||||||||||||||||||||
Other comprehensive loss | (27.3) | (27.2) | (27.2) | (0.1) | |||||||||||||||||||||||||||
Issuance of Liberty Latin America common shares, net | 347.7 | 347.7 | 0.5 | 347.2 | |||||||||||||||||||||||||||
Shared-based compensation | 19 | 19 | 19 | ||||||||||||||||||||||||||||
Other | (1.6) | (1.6) | |||||||||||||||||||||||||||||
Balance at Sep. 30, 2020 | $ 3,527.7 | $ 2,776.4 | $ 0.5 | $ 0 | $ 1.8 | $ (9.5) | $ 4,972.4 | $ (2,105.6) | $ (83.2) | $ 751.3 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (774.8) | $ (222.1) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Share-based compensation expense | 75.3 | 45.2 |
Depreciation and amortization | 661.5 | 665.3 |
Impairment | 279.9 | 196.3 |
Amortization of debt financing costs, premiums and discounts, net | 22 | 8.8 |
Realized and unrealized losses on derivative instruments, net | 239.7 | 96.6 |
Foreign currency transaction losses, net | 115.1 | 98.1 |
Loss on debt modification and extinguishment | 45.1 | 13 |
Deferred income tax benefit | (69.5) | (81.5) |
Changes in operating assets and liabilities, net of the effect of acquisitions | (103.3) | (229.3) |
Net cash provided by operating activities | 491 | 590.4 |
Cash flows from investing activities: | ||
Capital expenditures | (418.3) | (432) |
Cash paid in connection with acquisitions, net of cash acquired | (0.1) | (160.4) |
Recovery on damaged or destroyed property and equipment | 0 | 33.9 |
Other investing activities, net | (0.5) | 1.6 |
Net cash used by investing activities | (418.9) | (556.9) |
Cash flows from financing activities: | ||
Borrowings of debt | 1,289 | 1,641.2 |
Payments of principal amounts of debt and finance lease obligations | (1,259.5) | (1,197.4) |
Issuance of Liberty Latin America common shares, net | 349.6 | 0 |
Net cash received (paid) related to derivative instruments | 180.6 | (0.3) |
Capped Calls | 0 | (45.6) |
Payment of financing costs and debt premiums | (75.4) | (35.4) |
Repurchase of Liberty Latin America common shares | (9.5) | 0 |
Distributions to noncontrolling interest owners | (2.3) | (2.6) |
Other financing activities, net | (7.6) | (9.5) |
Net cash provided by financing activities | 464.9 | 350.4 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11.1) | (5.4) |
Net increase in cash, cash equivalents and restricted cash | 525.9 | 378.5 |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 2,457 | 642 |
End of period | 2,982.9 | 1,020.5 |
Cash paid for interest | 384.6 | 371.3 |
Net cash paid for taxes | $ 42.3 | $ 100.2 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Liberty Latin America Ltd. ( Liberty Latin America ) is a registered company in Bermuda that primarily includes (i) Cable & Wireless Communications Limited ( C&W ) and its subsidiaries, (ii) VTR Finance N.V., formerly known as VTR Finance B.V. ( VTR Finance ) and its subsidiaries, which include VTR.com SpA ( VTR ), (iii) Liberty Communications PR Holding LP ( Liberty PR ), formerly known as Leo Cable LP, and its subsidiaries, which include Liberty Communications of Puerto Rico LLC ( LCPR ), formerly known as Liberty Cablevision of Puerto Rico LLC, and (iv) LBT CT Communications, S.A. (a less than wholly-owned entity) and its subsidiary, Cabletica S.A. ( Cabletica ). Liberty PR and LCPR are collectively referred to herein as “ Liberty Puerto Rico .” C&W owns less than 100% of certain of its consolidated subsidiaries, including The Bahamas Telecommunications Company Limited ( C&W Bahamas ), Cable & Wireless Jamaica Limited ( C&W Jamaica ), and Cable & Wireless Panama, S.A. ( C&W Panama ). For information regarding the percentages of certain of our less than wholly-owned consolidated subsidiaries, see Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview. We are an international provider of fixed, mobile and subsea telecommunications services. We provide residential and business-to-business ( B2B ) services in (i) over 20 countries, primarily in Latin America and the Caribbean, through C&W, (ii) Chile and Costa Rica, through “ VTR/Cabletica ”, and (iii) Puerto Rico, through Liberty Puerto Rico. Through our “ Networks & LatAm ” business, C&W also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region. 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 September 30, 2020. 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 2019 Annual Report on Form 10-K (the 2019 Form 10-K ). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and assumptions are used in accounting for, among other things, the valuation of acquisition-related assets and liabilities, expected credit losses, programming and copyright expenses, deferred income taxes and related valuation allowances, loss contingencies, fair value measurements, impairment assessments, capitalization of internal costs associated with construction and installation activities, useful lives of long-lived assets and actuarial liabilities associated with certain benefit plans. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period presentation. During the second quarter of 2020, we changed the presentation of certain operating costs and expenses in our condensed consolidated statements of operations in order to better align with management’s approach to monitoring and evaluating such costs. Specifically, we have combined the costs previously reported in the consolidated statement of operations’ captions “other operating” and “selling, general and administrative” into one line, which is now referred to as “other operating costs and expenses.” In conjunction with this change, we have provided additional disclosure of the nature of other operating costs and expenses by function, as set forth in note 14. This change in presentation did not have any impact on operating income or loss, net loss or any of our key performance metrics. In addition, we have provided additional disclosure of the nature of our programming and other direct costs of services, as set forth in note 13. |
Accounting Changes and Recent A
Accounting Changes and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Recent Accounting Pronouncements | Accounting Changes and Recent Accounting Pronouncements Accounting Changes ASU 2018-15 In August 2018, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ( ASU 2018-15 ). ASU 2018-15 provides additional guidance on ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance (i) provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense, (ii) requires an entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement and (iii) clarifies the presentation requirements for reporting such costs in the entity’s financial statements. We adopted ASU 2018-15 effective January 1, 2020 on a prospective basis for all implementation costs incurred after the date of adoption and it did not have a material impact on our condensed consolidated financial statements. ASU 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments ( ASU 2016-13 ), as amended by (i) ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which amended certain effective dates, and (ii) ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies guidance around how to report expected recoveries. ASU 2016-13 replaces the incurred loss impairment methodology for recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We are required to use a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments. We adopted ASU 2016-13 effective January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to retained earnings to align our credit loss methodology with the new standard. The comparative information has not been restated and continues to be reported under the accounting standards in effect for that period. Under the new model, we segment our receivables, unbilled revenue and contract assets based on days past due and record an allowance for current expected credit losses using average rates applied against each account’s applicable aggregate balance for each aging bucket. We establish the average rates based on consideration of the actual credit loss experience over the prior 12-month period, recent collection trends, current economic conditions and reasonable expectations of future payment delinquency. The cumulative effect of the changes to our condensed consolidated balance sheet as of January 1, 2020 was not material. For information regarding changes to our accounting policies following the adoption of ASU 2016-13, see note 3. Recent Accounting Pronouncements ASU 2018-14 In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans ( ASU 2018-14 ), which removes and modifies certain existing disclosure requirements and adds new disclosure requirements related to employer sponsored defined benefit pension or other postretirement plans. ASU 2018-14 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect that ASU 2018-14 will have on our disclosures. ASU 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ( ASU 2019-12 ), which (i) simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods, and (ii) reduces the complexity in certain areas of existing tax guidance, including the recognition of deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. Although we are currently evaluating the effect that ASU 2019-12 will have on our consolidated financial statements, we do not expect it will have a material impact. ASU 2020-04 In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ( ASU 2020-04 ), which provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates, such as the London Inter-Bank Offered Rate ( LIBOR ), which regulators in the United Kingdom ( U.K. ) have announced will be phased out by the end of 2021. The expedients and exceptions provided by ASU 2020-04 are for the application of U.S. GAAP to contracts, hedging relationships and other transactions affected by the rate reform, and will not be available after December 31, 2022, other than for certain hedging relationships entered into before December 31, 2022. We do not currently expect that the phase out of LIBOR will have a material impact on our consolidated financial statements. ASU 2020-06 In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity: Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ( ASU 2020-06 ), which (i) reduces the number of accounting models for convertible instruments and allows more contracts to qualify for equity classification and (ii) makes targeted improvements to convertible instruments and earnings-per-share disclosure requirements. ASU 2020-06 is effective for annual reporting periods after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted, but no earlier than annual and interim periods in fiscal years beginning after December 15, 2020. While we are still evaluating the impact of ASU 2020-06, we do not currently expect it will have a material impact on our consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The following accounting policy reflects an update to the Summary of Significant Accounting Policies included in our 2019 Form 10-K resulting from the adoption of ASU 2016-13: Trade Receivables Our trade receivables are reported net of an allowance for credit losses. The allowance is established using our best estimates of current expected credit losses based upon, among other things, actual credit loss experience over the prior 12-month period, recent collection trends, prevailing and anticipated economic conditions and specific customer credit risk. Receivables outstanding greater than 30 days are considered past due and we generally write-off receivables after they become past due for 365 days, with the exception of certain amounts due from a single government. Concentration of credit risk with respect to trade receivables is limited due to the large number of customers and their dispersion across many different countries, with the exception of certain amounts due from a single government. Changes in the allowance for credit losses are set forth below (in millions): Balance at January 1, 2020 $ 87.3 Provision for expected losses 50.3 Write-offs (45.3) Foreign currency translation adjustments and other 4.5 Balance at September 30, 2020 $ 96.8 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Pending Acquisition Telefónica. On July 30, 2020, we entered into a definitive agreement to acquire Telefónica S.A.’s wireless operations in Costa Rica in an all-cash transaction based upon an enterprise value of $500 million on a cash- and debt-free basis (the Telefónica-Costa Rica Acquisition ). The transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2021. 2020 Acquisition AT&T. On October 9, 2019, Liberty PR and Liberty Latin America entered into a stock purchase agreement with certain subsidiaries of AT&T Inc. ( AT&T ) to acquire AT&T’s wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands (the AT&T Acquisition ) in an all-cash transaction. The AT&T Acquisition closed October 31, 2020.The operations acquired in the AT&T Acquisition provide consumer mobile and B2B services in Puerto Rico and the U.S. Virgin Islands, excluding DirecTV customers. In connection with the AT&T Acquisition we paid $1.9 billion, which includes the impact of preliminary working capital adjustments that we expect will be finalized during the first half of 2021. We financed this acquisition, including related fees and expenses, through a combination of net proceeds from the 2027 LPR Senior Secured Notes, the 2026 SPV Credit Facility and available liquidity. For further information about our debt and available liquidity, see note 9. As a regulatory condition to close, we are required to dispose of, among other assets, certain B2B assets in our existing Puerto Rico operations. AT&T will provide ongoing support to the companies associated with the AT&T Acquisition under a transition services agreement (the AT&T TSA ) for a period up to 36 months following the closing date of the acquisition. Services under the AT&T TSA include, but are not limited to, (i) wireless core, (ii) technology development, (iii) global technology operations, (iv) wireless engineering, (v) network infrastructure, (vi) supply chain and (vii) finance and sales operations. We may terminate any services under the AT&T TSA upon sixty business days’ notice to AT&T in accordance with the terms and conditions of the AT&T TSA. Pro forma financial information for the three and nine months ended September 30, 2020 and 2019 have not been provided as (i) recent financial statements of the acquired entities are not currently available and (ii) we have not had sufficient time to complete our initial valuation assessment. 2019 Acquisition UTS. Effective March 31, 2019, we completed the acquisition of an 87.5% interest in United Telecommunication Services N.V. ( UTS ) for an initial cash purchase price of $162 million, which was subject to certain potential post-closing adjustments, based on an enterprise value of $189 million (the UTS Acquisition ). As noted below, during the first quarter of 2020, the purchase price was reduced by $6 million due to certain post-closing working capital adjustments. During the third quarter of 2019, we increased our ownership interest in UTS from 87.5% to 100%. UTS provides fixed and mobile services to the island nations of Curaçao, St. Maarten, St. Martin, Bonaire, St. Barths, St. Eustatius and Saba. The UTS Acquisition was funded through a $170 million draw on the C&W Revolving Credit Facility, as defined in note 9. We have accounted for the UTS Acquisition as a business combination using the acquisition method of accounting, whereby the total purchase price was allocated to the acquired identifiable net assets of UTS based on assessments of their respective fair values, and the excess of the purchase price over the fair values of these identifiable net assets was allocated to goodwill. A summary of the purchase price and opening balance sheet of UTS at the effective March 31, 2019 acquisition date is presented in the following table. The opening balance sheet presented below reflects our final purchase price allocation (in millions): Cash $ 2.7 Trade receivables 19.0 Other current assets 6.7 Property and equipment 158.4 Goodwill (a) 17.1 Intangible assets subject to amortization 24.0 Other assets 18.2 Accounts payable (27.9) Other accrued and current liabilities (31.9) Other long-term liabilities (18.8) Noncontrolling interest (b) (11.6) Total purchase price (c) (d) $ 155.9 (a) The goodwill recognized in connection with the UTS Acquisition is primarily attributable to (i) the ability to take advantage of UTS’s existing broadband communications and mobile networks to gain immediate access to potential customers, and (ii) synergies that are expected to be achieved through the integration of UTS with C&W’s existing business in Curacao. (b) Amount represents the estimated aggregate fair value of the noncontrolling interest in UTS as of March 31, 2019. (c) Excludes $3 million of direct acquisition costs incurred during 2019 and 2018. Direct acquisition costs are included in impairment, restructuring and other operating items, net, in our condensed consolidated statements of operations. (d) Pursuant to the purchase agreement, which permits certain post-closing working capital adjustments, the UTS Acquisition purchase price was reduced by $6 million during the first quarter of 2020. This amount was received during the second quarter of 2020 and is included in investing activities in our condensed consolidated statement of cash flow. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2020 | |
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 Chilean peso ( CLP ), the Colombian peso ( COP ) and the Jamaican dollar ( JMD ). 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: September 30, 2020 December 31, 2019 Current (a) Long-term (a) Total Current (a) Long-term (a) Total in millions Assets: Cross-currency and interest rate derivative contracts (b) $ 3.4 $ 12.2 $ 15.6 $ 23.4 $ 126.9 $ 150.3 Foreign currency forward contracts 2.9 0.6 3.5 9.8 — 9.8 Total $ 6.3 $ 12.8 $ 19.1 $ 33.2 $ 126.9 $ 160.1 Liabilities: Cross-currency and interest rate derivative contracts (b) $ 72.1 $ 320.5 $ 392.6 $ 34.9 $ 99.6 $ 134.5 Foreign currency forward contracts 1.7 0.3 2.0 0.5 — 0.5 Total $ 73.8 $ 320.8 $ 394.6 $ 35.4 $ 99.6 $ 135.0 (a) Our current derivative assets, current derivative liabilities, long-term derivative assets and long-term derivative liabilities are included in other current assets, net, 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 9). The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in net gains of $1 million during each of the three months ended September 30, 2020 and 2019, and $41 million and $7 million during the nine months ended September 30, 2020 and 2019, respectively. The gains during the 2020 periods are primarily due to increased credit risk stemming from market reaction to the COVID-19 outbreak, as further described and defined in note 8. These amounts are included in realized and unrealized gains (losses) on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 6. The derivative assets set forth in the table above exclude our Weather Derivatives, as defined below, as they are not accounted for at fair value. The Weather Derivatives are included in other current assets, net, in our condensed consolidated balance sheets. The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Cross-currency and interest rate derivative contracts (a) $ (70.7) $ 46.6 $ (234.7) $ (99.2) Foreign currency forward contracts and other (b) (7.4) 4.8 (5.0) 2.6 Total $ (78.1) $ 51.4 $ (239.7) $ (96.6) (a) The losses for the nine months ended September 30, 2020 include a realized gain of $71 million associated with the settlement of certain cross-currency interest rate swaps at VTR Finance in June 2020 that were unwound in connection with the July 2020 refinancing of certain VTR Finance debt. For additional information regarding the refinancing, see note 9. (b) Amounts include charges of $5 million and $11 million for the three and nine months ended September 30, 2020, respectively, and $2 million and $3 million during the three and nine months ended September 30, 2019, respectively, related to amortization of the premiums associated with our Weather Derivative contracts (the Weather Derivatives ), which we initially entered into during the second quarter of 2019. The following table sets forth the classification of the net cash inflows of our derivative instruments: Nine months ended September 30, 2020 2019 in millions Operating activities $ (32.1) $ 7.6 Investing activities 7.4 4.5 Financing activities (a) 180.6 (0.3) Total $ 155.9 $ 11.8 (a) The 2020 amount is primarily related to the settlement of certain cross-currency interest rate swaps at VTR Finance. The settlement proceeds were used in part to redeem certain VTR Finance debt in July 2020, as further described in note 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 September 30, 2020, our exposure to counterparty credit risk included derivative assets with an aggregate fair value of $2 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 service, repay or refinance such debt. Although we generally seek to match the denomination of our 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 September 30, 2020: Borrowing group Notional amount Notional amount Weighted average remaining life in millions in years C&W $ 108.3 JMD 13,817.5 6.3 $ 56.3 COP 180,000.0 5.8 VTR Finance $ 1,150.0 CLP 933,800.0 5.8 Interest Rate Derivative Contracts Interest Rate Swaps 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 September 30, 2020: Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W (a) $ 2,350.0 6.7 VTR Finance $ 179.6 2.4 Liberty Puerto Rico $ 1,000.0 5.8 Cabletica $ 53.5 2.8 (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. 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 basis swap contracts at September 30, 2020: Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W $ 1,510.0 0.3 Liberty Puerto Rico $ 1,000.0 0.3 Foreign Currency Forwards Contracts We enter into foreign currency forward contracts with respect to non-functional currency exposure. At September 30, 2020, our foreign currency forward contracts had total notional amounts due from and to counterparties of $247 million and CLP 192 billion, respectively, with a weighted average remaining contractual life of 0.7 years. All of our foreign currency forward contracts are held by our VTR Finance borrowing group. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements General We use the fair value method to account for most of our derivative instruments and the available-for-sale method to account for our investment in U.K. Government Gilts. The reported fair values of our derivative instruments as of September 30, 2020 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. Recurring Fair Value Measurements Derivatives 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. Notwithstanding the impact of COVID-19 on our credit risk, we generally would not expect changes in our or our counterparties’ credit spreads to have a significant impact on the valuations of these instruments. As a result, we have determined that these valuations continue to fall under Level 2 of the fair value hierarchy. Our credit risk valuation adjustments with respect to our interest rate and cross-currency derivative contracts are quantified and further explained in note 5. 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 Sable International Finance Limited ( Sable ), a wholly-owned 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 September 30, 2020 and December 31, 2019 were $14 million and $30 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 gains of $3 million and $7 million during the three months ended September 30, 2020 and 2019, respectively, and $16 million and $12 million during the nine months ended September 30, 2020 and 2019, respectively, which are reflected in realized and unrealized gains (losses) on derivative instruments, net, in our condensed consolidated statements of operations. Available-for-sale Investments Our investment in U.K. Government Gilts falls under Level 1 of the fair value hierarchy. At September 30, 2020 and December 31, 2019, the carrying value of our investment in U.K. Government Gilts, which is included in other assets, net, in our condensed consolidated balance sheets, was $37 million. Nonrecurring Fair Value Measurements Fair value measurements are also used for purposes of nonrecurring valuations performed in connection with acquisition accounting and impairment assessments. Impairment Assessments During the second quarter of 2020, primarily due to the ongoing economic impacts associated with COVID-19 and organizational restructuring of certain of our smaller C&W markets, we performed goodwill impairment analyses of several reporting units within our C&W segment. We used an income approach to determine the estimated fair values of these reporting units. Under this approach, we utilized a discounted cash flow model as the valuation technique to estimate the fair values of the reporting units from a market participant’s perspective. This approach uses certain inputs and assumptions that require estimates and judgments, including forecasted cash flows and appropriate discount rates. Forecasts of future cash flows are largely based on our assumptions using Level 3 inputs, which we consider to be consistent with a market participant’s approach. We used the weighted-average cost of capital for each reporting unit as the basis for the discount rate to establish the present value of the expected cash flows for the respective reporting unit. The inputs for our weighted average cost of capital calculations include Level 2 and Level 3 inputs, generally derived from third-party pricing services. We used discount rates ranging from 8.9% to 10.3% in the valuation of the various reporting units within our C&W segment. For additional information regarding impairment charges resulting from this impairment analysis, see note 8. Acquisition Accounting The nonrecurring valuations associated with acquisition accounting, which use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy, primarily include the valuation of customer relationships and property and equipment, as further described below: • Customer relationships. The valuation of customer relationships is primarily based on an excess earnings methodology, which is a form of a discounted cash flow analysis. The excess earnings methodology for customer relationship intangible assets requires us to estimate the specific cash flows expected from the acquired customer relationships, considering such factors as estimated customer life, the revenue expected to be generated over the life of the customer relationships, contributory asset charges and other factors. • Property and equipment . Property and equipment is typically valued using a replacement or reproduction cost approach, considering factors such as current prices of the same or similar equipment, the age of the equipment and economic obsolescence. In March 2020, we performed a nonrecurring valuation related to final acquisition accounting for the UTS Acquisition. The weighted average discount rate used in the valuation of the customer relationships acquired was approximately 13.5%. |
Insurance Recoveries
Insurance Recoveries | 9 Months Ended |
Sep. 30, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Insurance Recoveries | Insurance RecoveriesIn September 2017, Hurricanes Irma and Maria impacted a number of our markets in the Caribbean, resulting in varying degrees of damage to homes, businesses and infrastructure in these markets. In October 2016, our operations in the Bahamas, which is part of our C&W segment, were significantly impacted by Hurricane Matthew.In December 2018, we settled our insurance claims for Hurricanes Irma, Maria and Matthew, as follows: (i) $109 million for Hurricanes Maria and Irma, after deducting $30 million of self-insurance, and (ii) $12 million for Hurricane Matthew, after deducting $15 million of self-insurance. During the first quarter of 2019, we received the then outstanding insurance settlement amount of $67 million, of which $33 million and $34 million have been presented as operating and investing activities, respectively, in our condensed consolidated statement of cash flows. With respect to the cash received, $37 million, $27 million and $3 million was provided to C&W, Liberty Puerto Rico and our Corporate operations, respectively. |
Long-lived Assets
Long-lived Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Long-lived Assets | Long-lived Assets Goodwill Changes in the carrying amount of our goodwill are set forth below: January 1, Acquisitions Impairments (a) Foreign September 30, in millions C&W $ 4,110.8 $ (12.0) $ (276.0) $ (90.2) $ 3,732.6 VTR/Cabletica 517.9 — — (24.5) 493.4 Liberty Puerto Rico 277.7 — — — 277.7 Total $ 4,906.4 $ (12.0) $ (276.0) $ (114.7) $ 4,503.7 (a) Amount represents impairment charges associated with various reporting units based primarily on the economic impacts associated with COVID-19, as further described below. During the first quarter of 2020, the World Health Organization declared the outbreak of a novel strain of Coronavirus ( COVID-19 ) a “pandemic,” pointing to the sustained risk of further global spread. As a result of the impact of COVID-19 on our results of operations, we evaluated whether the facts and circumstances and available information resulted in the need for an impairment assessment for any of our long-lived assets, including goodwill, and during the second quarter of 2020 concluded assessments were required with respect to our goodwill, which resulted in goodwill impairments in our C&W segment. We did not identify any indicators of impairment in our assessment during the third quarter of 2020. COVID-19 has negatively impacted our results of operations and resulted in systemic disruption of the worldwide equity markets, and the market values of our publicly-traded equity declined significantly beginning in late February. If, among other factors, (i) our equity values were to remain at these declined levels for a sustained period or were to decline further or (ii) the adverse impacts stemming from COVID-19, competition, economic, regulatory or other factors, including macro-economic and demographic trends, cause our results of operations or cash flows to be worse than currently anticipated, we could conclude in future periods that additional impairment charges are required in order to further reduce the carrying values of goodwill. Any such impairment charges could be significant. Our accumulated goodwill impairments were $1,624 million and $1,348 million at September 30, 2020 and December 31, 2019, respectively. Property and Equipment, Net The details of our property and equipment and the related accumulated depreciation are set forth below: September 30, December 31, in millions Distribution systems $ 4,420.4 $ 4,299.6 Customer premises equipment ( CPE ) 1,864.0 1,763.8 Support equipment, buildings and land 1,573.2 1,530.9 7,857.6 7,594.3 Accumulated depreciation (3,707.8) (3,293.2) Total $ 4,149.8 $ 4,301.1 During the nine months ended September 30, 2020 and 2019, we recorded non-cash increases to our property and equipment related to vendor financing arrangements aggregating $81 million and $59 million, respectively. Intangible Assets Subject to Amortization, Net The details of our intangible assets subject to amortization are set forth below: September 30, December 31, in millions Gross carrying amount: Customer relationships $ 1,473.2 $ 1,482.9 Licenses and other 160.3 170.1 Total gross carrying amount 1,633.5 1,653.0 Accumulated amortization: Customer relationships (768.4) (645.5) Licenses and other (39.6) (38.3) Total accumulated amortization (808.0) (683.8) Net carrying amount $ 825.5 $ 969.2 |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Debt and Lease Obligation [Abstract] | |
Debt and Finance Lease Obligations | Debt and Finance Lease Obligations The U.S. dollar equivalents of the components of our debt are as follows: September 30, 2020 Estimated fair value (c) Principal amount Weighted Unused borrowing capacity (b) Borrowing currency US $ equivalent September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 in millions Convertible Notes (d) 2.00 % — $ — $ 329.3 $ 430.1 $ 402.5 $ 402.5 C&W Notes 6.74 % — — 2,362.7 2,270.9 2,270.0 2,120.0 C&W Credit Facilities 2.84 % $ 665.8 665.8 1,904.6 2,017.1 1,961.3 2,006.1 VTR Finance Notes 5.72 % — — 1,195.5 1,290.9 1,150.0 1,260.0 VTR Credit Facilities 4.80 % (e) 257.4 217.5 229.7 221.8 231.4 LPR Senior Secured Notes 6.75 % — — 1,347.4 1,278.3 1,290.0 1,200.0 LPR Credit Facilities 5.15 % $ 125.0 125.0 1,001.3 1,012.1 1,000.0 1,000.0 Cabletica Credit Facilities (f) 7.73 % $ 15.0 15.0 117.9 123.8 120.3 124.8 Vendor financing (g) 3.14 % — — 183.4 167.7 183.4 167.7 Total debt before premiums, discounts and deferred financing costs 5.20 % $ 1,063.2 $ 8,659.6 $ 8,820.6 $ 8,599.3 $ 8,512.5 The following table provides a reconciliation of total debt before premiums, discounts and deferred financing costs to total debt and finance lease obligations: September 30, 2020 December 31, 2019 in millions Total debt before premiums, discounts and deferred financing costs $ 8,599.3 $ 8,512.5 Premiums, discounts and deferred financing costs, net (141.3) (146.1) Total carrying amount of debt 8,458.0 8,366.4 Finance lease obligations 1.8 3.6 Total debt and finance lease obligations 8,459.8 8,370.0 Less: Current maturities of debt and finance lease obligations (284.4) (180.2) Long-term debt and finance lease obligations $ 8,175.4 $ 8,189.8 (a) Represents the weighted average interest rate in effect at September 30, 2020 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. (b) Unused borrowing capacity represents the maximum availability under the applicable facility at September 30, 2020 without regard to covenant compliance calculations or other conditions precedent to borrowing. At September 30, 2020, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after completion of the September 30, 2020 compliance reporting requirements. At September 30, 2020, there were no restrictions on the respective subsidiary’s ability to upstream cash 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 interest rate reflects the stated rate of the Convertible Notes. The effective interest rate of the Convertible Notes is 6.7%, which considers the impact of a discount recorded in connection with the value ascribed to the instrument’s conversion option. (e) The VTR Credit Facilities comprise certain CLP term loans and U.S. dollar and CLP revolving credit facilities, including unused borrowing capacity. (f) The Cabletica Credit Facilities comprise certain Costa Rican colón and U.S. dollar term loans and a U.S. dollar revolving credit facility. (g) Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our operating expenses and property and equipment additions. 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 include $78 million and $93 million for the nine months ended September 30, 2020 and 2019, respectively, that were financed by an intermediary and are reflected on the borrowing date 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 payments of principal amounts of debt and finance lease obligations in our condensed consolidated statements of cash flows. Revolving Credit Facilities The following table sets forth amounts related to the revolving credit facilities of each of our borrowing groups as further described above. US $ equivalent Credit Facility Aggregate facility amount Unused borrowing capacity Outstanding principal amount in millions C&W Revolving Credit Facility (a) $ 625.0 $ 525.0 $ 100.0 C&W Regional Facilities – Revolving credit facilities 144.6 140.8 3.8 VTR – Revolving credit facilities 257.4 257.4 — 2019 LPR Revolving Credit Facility 125.0 125.0 — Cabletica Revolving Credit Facility 15.0 15.0 — Total $ 1,167.0 $ 1,063.2 $ 103.8 (a) Subsequent to September 30, 2020, the $100 million of outstanding principal was repaid. Liberty Latin America - Convertible Notes In June 2019, Liberty Latin America issued $403 million principal amount of 2.0% convertible senior notes (the Convertible Notes ) due July 15, 2024. Subject to certain conditions, and adjustments if certain events occur (as specified in the indenture governing the Convertible Notes), the Convertible Notes may be converted at a conversion rate initially equal to 44.9767 Class C common shares per $1,000 principal amount of the Convertible Notes (equivalent to an initial conversion price of approximately $22.23 per Class C common share), the “ Conversion Option ”. We account for the Conversion Option as a separate financial instrument that qualifies for equity classification. Accordingly, the Conversion Option was bifurcated from the Convertible Notes and recorded as additional paid-in capital and debt discount based on its initial estimated fair value of $78 million. Any conversions of the Convertible Notes may be settled, at the election of the Company, in cash, Class C common shares or a combination thereof. In September 2020, we completed a Rights Offering, as defined and further described in note 18, whereby we issued 49,049,073 of our Class C common shares. In connection with the Rights Offering, subject to certain anti-dilution provisions in the indenture governing the Convertible Notes, the conversion rate for the Convertible Notes was adjusted to 48.4315 Class C common shares per $1,000 principal amount of the Convertible Notes. At September 30, 2020, the carrying value of the Convertible Notes was $338 million and the unamortized debt discount on the Convertible Notes was $61 million. 2020 Financing and Refinancing Transactions C&W C&W Term Loan B-5 Facility . In January 2020, Coral-US Co-Borrower LLC, a wholly-owned subsidiary of C&W, entered into a LIBOR plus 2.25% $1,510 million principal amount term loan facility (the C&W Term Loan B-5 Facility ), issued at par, due January 31, 2028. Interest is payable monthly beginning on February 28, 2020. 2027 C&W Senior Secured Notes Add-on . In January 2020, Sable issued an additional $150 million aggregate principal amount, at 106.0% of par, under the existing 2027 C&W Senior Secured Notes indenture (the 2027 C&W Senior Secured Notes Add-on ). The terms and conditions of the 2027 C&W Senior Secured Notes Add-on are consistent with the original indenture. The net proceeds from the C&W Term Loan B-5 Facility and the 2027 C&W Senior Secured Notes Add-on were primarily used to repay in full the $1,640 million outstanding principal amount under the C&W Term Loan B-4 Facility, including accrued and unpaid interest. In connection with these transactions, we recognized a loss on debt modification and extinguishment of $3 million, which primarily includes the write-off of unamortized discounts and deferred financing costs. C&W Borrowing Group Refinancing Transactions . In January 2020, C&W completed a series of transactions contemplated by and permitted under its existing debt agreements (the C&W Borrowing Group Refinancing Transactions ) that ultimately resulted in the 2026 C&W Senior Notes and the 2027 C&W Senior Notes (previously issued by C&W Senior Financing Designated Activity Company) instead being directly issued by a wholly-owned subsidiary of C&W, C&W Senior Finance Limited. In connection with the C&W Borrowing Group Refinancing Transactions, the loans previously made by C&W Senior Financing Designated Activity Company are no longer outstanding. The terms and conditions applicable to the 2026 C&W Senior Notes and the 2027 C&W Senior Notes otherwise remain substantively unchanged. C&W Revolving Credit Facility . In January 2020, the maturity date associated with $575 million of the existing $625 million C&W Revolving Credit Facility was extended to January 30, 2026. All other terms and conditions of the revolving credit facility remain unchanged. In March 2020, we borrowed $313 million under the C&W Revolving Credit Facility. We repaid $213 million of this drawdown in the third quarter of 2020. The remaining balance is included in cash and cash equivalents on our condensed consolidated balance sheet as of September 30, 2020. Subsequent to September 30, 2020, the $100 million remaining balance was repaid. C&W Regional Facilities. In June 2020, C&W Panama refinanced a $100 million principal amount term loan facility to extend the maturity to March 17, 2025. All other terms and conditions of this facility remain unchanged. VTR Finance 2028 VTR Senior Secured Notes. In July 2020, VTR Comunicaciones SpA, a wholly-owned subsidiary of VTR Finance, issued $600 million aggregate principal amount of 5.125% senior secured notes (the 2028 VTR Senior Secured Notes ) due January 15, 2028. Interest on the 2028 VTR Senior Secured Notes is payable semi-annually on January 15 and July 15, commencing on January 15, 2021. The net proceeds of $1,133 million from the 2028 VTR Senior Secured Notes and the 2028 VTR Finance Senior Notes (as defined and described further below), together with $187 million of proceeds from the unwinding of certain derivative instruments, were used to redeem $1,260 million of outstanding principal amount under the VTR Finance Senior Notes, including accrued and unpaid interest and a $29 million redemption premium. In connection with these transactions, (i) $550 million was treated as a non-cash transaction in our condensed consolidated statement of cash flows and (ii) we recognized a loss on debt modification and extinguishment of $42 million, which primarily includes the payment of the aforementioned redemption premium and the write-off of unamortized deferred financing costs. Redemption Rights. The 2028 VTR Senior Secured Notes may be redeemed, in whole or in part, at any time prior to July 15, 2023 at a price equal to 100% of the principal amount of the notes redeemed, plus accrued and unpaid interest to (but excluding) the redemption date, and a “make whole” premium, as described in the 2028 VTR Senior Secured Notes indenture. The 2028 VTR Senior Secured Notes may be redeemed, in whole or in part, at any time on or after July 15, 2023 at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid interest and additional amounts, if any, to the applicable redemption date, as set forth below: Redemption Price 12-month period commencing July 15: 2023 102.563% 2024 101.281% 2025 and thereafter 100.000% In addition, at any time prior to July 15, 2023, subject to certain conditions specified in the 2028 VTR Senior Secured Notes indenture, we may redeem up to 40% of the aggregate principal amount of the 2028 VTR Senior Secured Notes with the net proceeds of one or more specified equity offerings at a redemption price equal to 105.125% of the principal amount of the notes redeemed, plus accrued and unpaid interest and additional amounts, if any, to the applicable redemption date. Prior to July 15, 2023, during each 12-month period commencing on the July 1, 2020, we may redeem up to 10% of the aggregate principal amount of the 2028 VTR Senior Secured Notes at a redemption price equal to 103% of the principal amount of the notes redeemed, plus accrued and unpaid interest to (but excluding) the redemption date. The 2028 VTR Senior Secured Notes are guaranteed by VTR, and are the senior obligations of VTR Comunicaciones SpA and VTR. The 2028 VTR Senior Secured Notes are secured by first-ranking pledges over (i) all of the capital stock of the VTR Comunicaciones SpA and VTR and (ii) certain subordinated shareholder loans. 2028 VTR Finance Senior Notes. In July 2020, VTR Finance N.V. issued $550 million aggregate principal amount of 6.375% senior notes (the 2028 VTR Finance Senior Notes ) due July 15, 2028. Interest on the 2028 VTR Finance Senior Notes is payable semi-annually on January 15 and July 15, commencing on January 15, 2021. Redemption Rights. The 2028 VTR Finance Senior Notes may be redeemed, in whole or in part, at any time prior to July 15, 2023 at a price equal to 100% of the principal amount of the notes redeemed, plus accrued and unpaid interest to (but excluding) the redemption date, and a “make whole” premium, as described in the 2028 VTR Finance Senior Notes indenture. The 2028 VTR Finance Senior Notes may be redeemed, in whole or in part, at any time on or after July 15, 2023 at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid interest and additional amounts, if any, to the applicable redemption date, as set forth below: Redemption Price 12-month period commencing July 15: 2023 103.188% 2024 101.594% 2025 and thereafter 100.000% In addition, at any time prior to July 15, 2023, subject to certain conditions specified in the 2028 VTR Finance Senior Notes indenture, we may redeem up to 40% of the aggregate principal amount of the 2028 VTR Finance Senior Notes with the net proceeds of one or more specified equity offerings at a redemption price equal to 106.375% of the principal amount of the notes redeemed, plus accrued and unpaid interest and additional amounts, if any, to the applicable redemption date. The 2028 VTR Finance Senior Notes are the senior obligations of VTR Finance and are secured by a pledge over all the shares of VTR Finance. The details of our outstanding VTR Finance Notes as of September 30, 2020 are summarized in the following table: Maturity Interest Rate Outstanding principal amount Estimated fair value Carrying value (a) in millions 2028 VTR Senior Secured Notes January 15, 2028 5.125 % $ 600.0 $ 618.2 $ 596.9 2028 VTR Finance Senior Notes July 15, 2028 6.375 % $ 550.0 577.3 533.5 $ 1,150.0 $ 1,195.5 $ 1,130.4 (a) Amounts are net of deferred financing costs. VTR RCF – B . In March 2020, we borrowed $92 million under the VTR RCF – B. In June 2020, (i) the drawdown was fully repaid and (ii) the commitment under the VTR RCF – B was increased to $200 million and the term was extended to June 15, 2026. Liberty Puerto Rico 2027 LPR Senior Secured Notes Add-on . In May 2020, LCPR Senior Secured Financing Designated Activity Company ( LCPR Senior Secured Financing ) issued an additional $90 million aggregate principal amount, at 102.5% of par, under the existing 2027 LPR Senior Secured Notes indenture (the 2027 LPR Senior Secured Notes Add-on ). LCPR Senior Secured Financing is a special purpose financing entity, created for the primary purpose of facilitating the issuance of certain debt offerings. A subsidiary of Liberty PR is required to consolidate LCPR Senior Secured Financing as a result of certain variable interests in LCPR Senior Secured Financing, of which the subsidiary is considered the primary beneficiary. The terms and conditions of the 2027 LPR Senior Secured Notes Add-on are consistent with the original indenture. The net proceeds from the 2027 LPR Senior Secured Notes Add-on were deposited into escrow, subsequently released upon consummation of the AT&T Acquisition and used to fund one or more loans to a wholly-owned subsidiary of Liberty PR. The payment of all obligations under such loans are guaranteed by LCPR and certain of its affiliates and their respective significant subsidiaries, and all the issued capital stock or share capital of LCPR and each guarantor, and substantially all assets of LCPR and each guarantor is pledged to secure the payment of such obligations. Such loans and a capital contribution from Liberty Latin America were used to finance the AT&T Acquisition and to pay related fees and expenses. As of September 30, 2020, the proceeds of this loan were in escrow and are included in restricted cash in our condensed consolidated balance sheet. For additional information regarding the AT&T Acquisition, see note 4. 2019 LPR Revolving Credit Facility. In March 2020, we borrowed $63 million under the 2019 LPR Revolving Credit Facility. This drawdown was fully repaid in the third quarter of 2020. Maturities of Debt Maturities of our debt as of September 30, 2020 are presented below. Amounts presented below represent U.S. dollar equivalents based on September 30, 2020 exchange rates: C&W VTR Finance Liberty Puerto Rico Cabletica Liberty Latin America Consolidated in millions Years ending December 31: 2020 (remainder of year) $ 136.8 $ 24.9 $ — $ — $ 0.1 $ 161.8 2021 67.4 64.8 — — 0.5 132.7 2022 26.8 89.8 — — 0.7 117.3 2023 135.4 132.0 — 120.3 0.8 388.5 2024 70.6 — — — 402.9 473.5 2025 103.2 — — — — 103.2 Thereafter 3,782.3 1,150.0 2,290.0 — — 7,222.3 Total debt maturities 4,322.5 1,461.5 2,290.0 120.3 405.0 8,599.3 Premiums, discounts and deferred financing costs, net (29.5) (22.7) (22.0) (2.8) (64.3) (141.3) Total debt $ 4,293.0 $ 1,438.8 $ 2,268.0 $ 117.5 $ 340.7 $ 8,458.0 Current portion $ 193.6 $ 89.7 $ — $ — $ 0.2 $ 283.5 Noncurrent portion $ 4,099.4 $ 1,349.1 $ 2,268.0 $ 117.5 $ 340.5 $ 8,174.5 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The following table provides details of our operating lease expense: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Operating lease expense: Operating lease cost $ 10.3 $ 11.0 $ 32.9 $ 32.2 Short-term lease cost 3.5 3.6 9.7 7.6 Total operating lease expense $ 13.8 $ 14.6 $ 42.6 $ 39.8 The following table provides certain other details of our operating leases at September 30, 2020: For the nine months ended September 30, 2020 (in millions): Operating cash outflows from operating leases $ 29.1 Right-of-use assets obtained in exchange for new operating lease liabilities (a) $ 23.0 As of September 30, 2020 (in millions): Operating lease right-of-use assets (b) $ 143.4 Operating lease liabilities: Current (b) $ 31.6 Noncurrent (b) 111.6 Total operating lease liabilities $ 143.2 Weighted-average remaining lease term 6.4 years Weighted-average discount rate 6.5 % (a) Represents non-cash transactions associated with operating leases entered into during the nine months ended September 30, 2020. (b) Our operating lease right-of-use assets are included in other assets, net other accrued and current liabilities other long-term liabilities, Maturities of Operating Leases Maturities of our operating lease liabilities on an undiscounted basis as of September 30, 2020 are presented below along with the current and noncurrent operating lease liabilities on a discounted basis. Such amounts represent U.S. dollar equivalents (in millions) based on September 30, 2020 exchange rates. Years ending December 31: 2020 (remainder of year) $ 12.2 2021 35.4 2022 29.4 2023 23.4 2024 19.8 2025 13.5 Thereafter 43.1 Total operating lease liabilities on an undiscounted basis 176.8 Amount representing interest (33.6) Present value of operating lease liabilities $ 143.2 |
Unfulfilled Performance Obligat
Unfulfilled Performance Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled Performance Obligations | Unfulfilled Performance Obligations We enter into certain 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. We assess whether prepaid capacity contracts contain a significant financing component. If the financing component is significant, interest expense is accreted over the life of the contract using the effective interest method. The revenue associated with prepaid capacity contracts is deferred and generally recognized on a straight-line basis over the life of the contract. As of September 30, 2020, we have approximately $415 million of unfulfilled performance obligations relating to our long-term capacity contracts, primarily subsea contracts, that generally will be recognized as revenue over an average remaining life of six years. |
Restructuring Liabilities
Restructuring Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Liabilities | Restructuring Liabilities A summary of changes in our restructuring liability is set forth in the table below: Employee severance and termination Contract termination and other Total in millions Restructuring liability as of January 1, 2020 $ 19.0 $ 13.3 $ 32.3 Restructuring charges 4.7 7.2 11.9 UTS liabilities at acquisition date (a) 2.1 — 2.1 Cash paid (11.9) (7.4) (19.3) Foreign currency translation adjustments and other (5.2) 1.1 (4.1) Restructuring liability as of September 30, 2020 $ 8.7 $ 14.2 $ 22.9 Current portion $ 6.9 $ 12.7 $ 19.6 Noncurrent portion 1.8 1.5 3.3 Total $ 8.7 $ 14.2 $ 22.9 (a) Represents an adjustment related to the completion of our purchase price accounting for the UTS Acquisition, as further discussed in note 4. Our restructuring charges during the nine months ended September 30, 2020 primarily relate to reorganization programs at C&W and VTR. Current and noncurrent restructuring liabilities are included in other accrued and current liabilities and other long-term liabilities, respectively, in our condensed consolidated balance sheets. In addition to the restructuring charges set forth in the table above, we also incurred $2 million during the nine months ended September 30, 2020 in restructuring charges related to employee severance and termination costs at C&W, which impacted our net pension liability. |
Programming and Other Direct Co
Programming and Other Direct Costs of Services | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Programming and Other Direct Costs of Services | Programming and Other Direct Costs of Services General. Programming and other direct costs of services include programming and copyright costs, interconnect and access costs, commissions, costs of mobile handsets and other devices, and other direct costs related to our operations. Programming and copyright costs represent a significant portion of our operating costs. Our programming and other direct costs of services by major category are set forth below. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Programming and copyright $ 96.0 $ 102.8 $ 289.5 $ 319.6 Interconnect and commissions 58.2 69.3 183.3 213.8 Equipment and other 35.5 43.6 107.4 130.7 Total programming and other direct costs $ 189.7 $ 215.7 $ 580.2 $ 664.1 |
Other Operating Costs and Expen
Other Operating Costs and Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Operating Costs and Expenses | Other Operating Costs and Expenses General. Other operating costs and expenses set forth in the table below comprise the following cost categories: • Personnel and contract labor-related costs, which primarily include salary-related and cash bonus expenses, net of capitalizable labor costs, and temporary contract labor costs; • Network-related expenses, which primarily include costs related to network access, system power, core network, and CPE repair, maintenance and test costs; • Service-related costs, which primarily include professional services, information technology-related services, audit, legal and other services; • Commercial , which primarily includes sales and marketing costs, such as advertising, commissions and other sales and marketing-related costs, and customer care costs related to outsourced call centers; • Facility, provision, franchise and other , which primarily includes facility-related costs, provision for bad debt expense, franchise-related fees, bank fees, insurance, travel and entertainment and other operating-related costs; and • Share-based compensation costs that relate to SARs, RSUs and PSUs issued to our employees and Directors, each as defined in note 16. Our other operating costs and expenses by major category are set forth below. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Personnel and contract labor $ 113.9 $ 126.4 $ 351.6 $ 374.4 Network-related 66.4 65.5 193.2 195.3 Service-related 35.2 41.6 110.0 116.1 Commercial 38.8 41.1 120.3 130.5 Facility, provision, franchise and other 83.3 96.8 255.4 279.1 Share-based compensation expense 28.0 15.1 75.3 45.2 Total other operating costs and expenses $ 365.6 $ 386.5 $ 1,105.8 $ 1,140.6 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
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 that is applied to year-to-date ordinary income or loss. The tax effects 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 benefit was $43 million and $182 million during the three months ended September 30, 2020 and 2019, respectively, and $33 million and $149 million during the nine months ended September 30, 2020 and 2019, respectively. This represents an effective income tax rate of (32.2)% and (72.4)% for the three months ended September 30, 2020 and 2019, respectively, and (4.1)% and (40.1)% for the nine months ended September 30, 2020 and 2019, respectively, including items treated discretely. For the three and nine months ended September 30, 2020, the income tax benefit attributable to our loss before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the beneficial effects of international rate differences, net favorable changes in uncertain tax positions, and permanent items, such as non-taxable income. These beneficial impacts to our effective tax rate were partially offset by the negative effects of increases in valuation allowances, permanent items, such as non-deductible goodwill impairment and other non-deductible expenses, as well as the inclusion of withholding taxes on cross-border payments. For the three and nine months ended September 30, 2020, we satisfied requirements imposed under recent tax reforms and, as a result, reduced our uncertain tax positions by $20 million. Additionally, during the nine months ended September 30, 2020, we closed certain tax audits and, as a result, reduced our uncertain tax positions by $18 million. These amounts have been reflected as discrete tax benefits in our condensed consolidated statement of operations. For the three and nine months ended September 30, 2019, the income tax benefit attributable to our loss before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the beneficial effects of net favorable changes in uncertain tax positions, international rate differences, and permanent items, such as non-taxable income. These beneficial impacts to our effective tax rate were partially offset by the negative effects of increases in valuation allowances and permanent items, such as non-deductible goodwill impairment and other non-deductible expenses. Additionally, for the nine months ended September 30, 2019, our effective tax rate reflects the beneficial effects of a change in the Barbados and Grenada statutory tax rates. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Share-based Incentive Awards The following tables summarize the share-based incentive awards related to Liberty Latin America Class A and Class C common shares held by our employees and our board of directors ( Directors ) as of September 30, 2020: Number of Weighted average exercise price Weighted average remaining contractual term Share-based incentive award type in years Stock appreciation rights ( SARs ): Class A common shares: Outstanding 5,344,204 $ 17.19 5.3 Exercisable 1,867,282 $ 22.97 4.1 Class C common shares: Outstanding 10,688,103 $ 17.21 5.3 Exercisable 3,734,614 $ 22.99 4.1 Number of Weighted average remaining contractual term Share-based incentive award type in years Restricted stock units ( RSUs ) outstanding: Class A common shares 485,752 2.1 Class C common shares 971,247 2.1 Performance-based restricted stock units ( PSUs ) outstanding: Class A common shares 497,015 0.7 Class C common shares 994,047 0.7 During the nine months ended September 30, 2020, we granted SARs with respect to 2,121,070 Class A common shares and 4,242,140 Class C common shares, which have weighted average exercise prices of $10.42 and $10.47, respectively, and weighted average grant-date fair values of $7.11 and $4.39, respectively. We also granted RSUs during the nine months ended September 30, 2020 with respect to 665,569 Class A common shares and 1,331,138 Class C common shares, which have weighted average grant-date fair values of $10.17 and $10.23, respectively. Liability-Based Awards Our share-based compensation expense during 2020 includes estimated bonus-related expenses for the 2020 year that will be paid in the form of equity. Accordingly, such expenses have been included in share-based compensation expense effective January 1, 2020 and are being accounted for using the liability-based method. Modification During the three months ended September 30, 2020, the expiration period for certain awards related to Liberty Global plc ( Liberty Global ) shares held by our employees was extended from 7 years to 10 years. This resulted in incremental expense of $7 million, all of which was recorded during the third quarter. |
Earnings or Loss per Share
Earnings or Loss per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings or Loss per Share | Earnings or 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 Class A, Class B and Class C common shares of Liberty Latin America (collectively, Liberty Latin America 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 as if they had been exercised, vested or converted at the beginning of the periods presented. The details of our net earnings (loss) attributable to Liberty Latin America shareholders are set forth below: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Net loss $ (90.0) $ (69.7) $ (774.8) $ (222.1) Net loss attributable to noncontrolling interests 5.4 105.0 116.5 99.7 Net earnings (loss) attributable to Liberty Latin America shareholders $ (84.6) $ 35.3 $ (658.3) $ (122.4) The details of our weighted average shares outstanding are set forth below: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Weighted average shares outstanding: Basic 185,380,797 184,452,387 183,286,840 184,238,994 Diluted 185,380,797 184,807,225 183,286,840 184,238,994 We reported losses attributable to Liberty Latin America shareholders during the three and nine months ended September 30, 2020 and the nine months ended September 30, 2019. As a result, the potentially dilutive effect at September 30, 2020 and 2019 of the following items was not included in the computation of diluted loss per share for such periods 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) using the if-converted method, the aggregate number of shares potentially issuable under our 2.0% convertible senior notes due July 15, 2024 (the Convertible Notes ) of approximately 19.5 million, (ii) the aggregate number of shares issuable pursuant to outstanding options, SARs and RSUs of approximately 19.4 million and 15.9 million, respectively, and (iii) the aggregate number of shares issuable pursuant to outstanding PSUs of approximately 1.5 million and 2.3 million, respectively. A portion of these amounts relate to Liberty Latin America Shares held by employees of Liberty Global. The details of the calculations of our basic and diluted EPS for the three months ended September 30, 2019 are set forth below: Numerator: Net earnings attributable to holders of Liberty Latin America Shares (basic and diluted EPS computation, in millions) $ 35.3 Denominator: Weighted average shares (basic EPS computation) 184,452,387 Incremental shares attributable to the release of PSUs and RSUs upon vesting and the assumed exercise of outstanding options (treasury stock method) 354,838 Weighted average shares (diluted EPS computation) 184,807,225 The potentially dilutive effect at September 30, 2019 of the following items was not included in the computation of diluted EPS set forth in the table above 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) using the if-converted method, the aggregate number of shares potentially issuable under our Convertible Notes of approximately 18.1 million (ii) the aggregate number of shares issuable pursuant to outstanding options, SARs and RSUs of approximately 15.8 million and (iii) the aggregate number of shares issuable pursuant to outstanding PSUs of approximately 0.5 million. A portion of these amounts relate to Liberty Latin America Shares held by employees of Liberty Global. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | Equity Share Repurchase Program On March 16, 2020, our Directors approved a share repurchase program (the Share Repurchase Program ), which authorizes us to repurchase from time to time up to $100 million of our Class A common shares and/or Class C common shares through March 2022, subject to certain limitations and conditions. The Share Repurchase Program does not obligate us to repurchase any of our Class A or C common shares. Under the Share Repurchase Program, we may repurchase our common shares from time to time in open market purchases at prevailing market prices, in privately negotiated transactions, in block trades, derivative transactions and/or through other legally permissible means. During the nine months ended September 30, 2020, we repurchased 293,816 and 673,158 Class A and Class C common shares, respectively. At September 30, 2020, the remaining amount authorized for share repurchases was $91 million. Rights Offering On August 5, 2020, our Directors authorized the distribution (the Rights Distribution ) of pro rata subscription rights to holders of our Class A, Class B and Class C common shares (the " Class C Rights ") to acquire Class C common shares (" LILAK " or “ Class C ”), in a rights offering (the " Rights Offering "). In the Rights Distribution, we distributed 0.269 of a Class C Right for each share of Class A, Class B or Class C common shares held as of September 8, 2020, which was the record date for the Rights Distribution. Fractional Class C Rights were rounded up to the nearest whole right. Each whole Class C Right entitled the holder to purchase, pursuant to the basic subscription privilege, one share of LILAK at a subscription price of $7.14, which was equal to an approximate 25% discount to the volume weighted average trading price of LILAK for the 3-day trading period ending on and including September 2, 2020. Each Class C Right also entitled the holder to subscribe for additional shares of LILAK that were unsubscribed for in the Rights Offering pursuant to an over-subscription privilege. The Rights Offering commenced on September 11, 2020, which was also the ex-dividend date for the Rights Distribution. The Rights Offering expired in accordance with its terms on September 25, 2020 and was fully subscribed with 49,049,073 shares of LILAK issued to those rights holders exercising basic and, if applicable, over-subscription privileges. The proceeds from the Rights Offering, which aggregated $350 million before expenses, are expected to be used to finance acquisitions, including our recently announced Telefónica-Costa Rica Acquisition, and for other general corporate purposes. Capped Calls In connection with the issuance of our Convertible Notes, Liberty Latin America entered into capped call option contracts (the Capped Calls ). The Capped Calls are used as an economic hedge to reduce or offset potential dilution to our Class C common shares upon any conversion of the Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of such converted notes, as the case may be, with such reduction and/or offset subject to a cap. Collectively, the Capped Calls cover the number of the Company’s Class C common shares underlying the Convertible Notes, or 19.5 million of Class C common shares, as adjusted for the impact of the Rights Offering as described below. The Capped Calls had an initial strike price of $22.2337 per Class C common share and an initial cap price of $31.7625 per Class C common share, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Convertible Notes, and expire on July 15, 2024. Following the completion of the Rights Offering, the strike price of the Capped Calls is $20.65 per Class C common share and the cap price per Class C common share ranges from $28.00 to $29.50. The Capped Calls are not considered a derivative instrument under ASC 815, Derivatives and Hedging , as the contracts are indexed to our Class C common shares and therefore classified within shareholders’ equity. The aggregate premiums paid for the Capped Calls of $46 million are included in additional paid-in capital in our condensed consolidated statement of equity for the three and nine months ended September 30, 2019. Conversion Option – Convertible Notes In connection with the issuance of the Convertible Notes, we recorded $77 million in additional paid-in capital in our condensed consolidated statement of equity for the Conversion Option for the three and nine months ended September 30, 2019, which represents the fair value of the Conversion Option at issuance less $1 million of allocated transaction fees and costs. For additional information see note 9. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
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 and other items. The following table sets forth the U.S. dollar equivalents of such commitments as of September 30, 2020: Payments due during: Remainder of 2020 2021 2022 2023 2024 2025 Thereafter Total in millions Programming commitments $ 47.8 $ 114.4 $ 81.8 $ 48.1 $ 38.7 $ 0.5 $ — $ 331.3 Network and connectivity commitments 23.1 40.3 8.3 5.6 4.8 2.5 9.2 93.8 Purchase commitments 133.1 21.4 6.7 1.4 — — — 162.6 Other commitments 6.2 2.1 1.7 1.5 1.4 1.4 8.3 22.6 Total (a) $ 210.2 $ 178.2 $ 98.5 $ 56.6 $ 44.9 $ 4.4 $ 17.5 $ 610.3 (a) The commitments included in this table do not reflect any liabilities that are included in our September 30, 2020 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 $290 million and $320 million during the nine months ended September 30, 2020 and 2019, respectively. Network and connectivity commitments include (i) 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 our MVNO commitment represent fixed minimum amounts payable under this agreement 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 nine months ended September 30, 2020 and 2019, 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. Legal and Regulatory Proceedings and Other Contingencies VTR Class Action. On August 25, 2020, VTR was notified that the Chilean National Consumer Authority (“ SERNAC ”, the Spanish acronym for Servicio Nacional del Consumidor) had filed a class action complaint against VTR in the 14th Civil Court of Santiago. The complaint relates to consumer complaints regarding VTR’s broadband service and capacity during the pandemic and raises claims regarding, among other things, VTR’s disclosure of its broadband speeds and aggregate capacity availability and VTR’s response to address the causes of service instability during the pandemic. VTR was also notified in August about two additional class action complaints filed by two Chilean consumer associations (ODECU and AGRECU) making similar claims and allegations. The class action complaint of ODECU was filed in the 21st Civil Court of Santiago, and the class action complaint of AGRECU was filed in the 26th Civil Court of Santiago. The complaint of SERNAC and ODECU seeks (i) the Court declare that VTR has infringed the rules of the Consumer Protection Law; (ii) the responsibility of VTR for such infractions and, if so, establish the corresponding fines; and (iii) compensatory damages. In the case of AGRECU, the complaint only seeks compensatory damages. On October 22, 2020, VTR was notified of a fourth class action complaint filed by Conadecus in the 16 th Civil Court of Santiago alleging that VTR did not adhere to certain call center, technical visit and service level requirements under applicable law. We believe that the allegations contained in the complaints are without merit, in particular as it relates to VTR’s service and response during the pandemic and intend to defend the complaints vigorously. We cannot predict at this point the length of time that these actions will be ongoing. Additionally, a liability, if any, or a reasonable range of loss is not currently determinable based upon the current facts and circumstances of these claims. Regulatory Issues. Video distribution, broadband internet, fixed-line telephony and mobile businesses 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 | 9 Months Ended |
Sep. 30, 2020 | |
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. 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 incentive compensation plans. As we use the term, “ Adjusted OIBDA ” is defined as operating income or loss before share-based compensation, depreciation and amortization, 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. A reconciliation of total Adjusted OIBDA to operating income (loss) and to loss before income taxes is presented below. As of September 30, 2020, our reportable segments are as follows: • C&W • VTR/Cabletica • 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) over 20 countries, primarily in Latin America and the Caribbean, through C&W, (ii) Chile and Costa Rica, through VTR/Cabletica, and (iii) Puerto Rico, through Liberty Puerto Rico. C&W also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region. Our corporate category includes our corporate operations. Performance Measures of our Reportable Segments The amounts presented below represent 100% of the revenue and Adjusted OIBDA of each of our reportable segments and our corporate operations. As we have the ability to control Cabletica 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 (i) certain subsidiaries of C&W and (ii) Cabletica are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations. Revenue Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions C&W (a) $ 538.9 $ 595.9 $ 1,642.8 $ 1,772.3 VTR/Cabletica 236.9 268.4 704.7 819.4 Liberty Puerto Rico 114.4 104.3 328.1 306.7 Intersegment eliminations (2.7) (1.8) (8.2) (6.0) Total $ 887.5 $ 966.8 $ 2,667.4 $ 2,892.4 (a) The amount presented for the nine months ended September 30, 2019 excludes the pre-acquisition revenue of UTS, which was acquired effective March 31, 2019. Adjusted OIBDA Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions C&W (a) $ 220.4 $ 236.2 $ 656.8 $ 694.1 VTR/Cabletica 92.9 108.5 272.6 327.7 Liberty Puerto Rico 58.1 50.8 161.0 150.3 Corporate (11.2) (15.8) (33.7) (39.2) Total $ 360.2 $ 379.7 $ 1,056.7 $ 1,132.9 (a) The amount presented for the nine months ended September 30, 2019 excludes the pre-acquisition Adjusted OIBDA of UTS, which was acquired effective March 31, 2019. The following table provides a reconciliation of total Adjusted OIBDA to operating income and to loss before income taxes: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Total Adjusted OIBDA $ 360.2 $ 379.7 $ 1,056.7 $ 1,132.9 Share-based compensation expense (28.0) (15.1) (75.3) (45.2) Depreciation and amortization (231.6) (226.0) (661.5) (665.3) Impairment, restructuring and other operating items, net (14.0) (208.3) (331.5) (235.3) Operating income (loss) 86.6 (69.7) (11.6) 187.1 Interest expense (129.9) (123.9) (408.5) (359.4) Realized and unrealized gains (losses) on derivative instruments, net (78.1) 51.4 (239.7) (96.6) Foreign currency transaction gains (losses), net 30.1 (110.8) (115.1) (98.1) Losses on debt modification and extinguishment (41.7) (3.5) (45.1) (13.0) Other income, net 0.2 4.4 11.8 9.4 Loss before income taxes $ (132.8) $ (252.1) $ (808.2) $ (370.6) Property and Equipment Additions of our Reportable Segments The property and equipment additions of our reportable segments and our corporate operations (including capital additions financed under vendor financing or finance lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our condensed consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing, see note 8. Nine months ended September 30, 2020 2019 in millions C&W (a) $ 234.1 $ 264.9 VTR/Cabletica 144.4 166.2 Liberty Puerto Rico 52.3 56.0 Corporate 12.3 5.0 Total property and equipment additions 443.1 492.1 Assets acquired under capital-related vendor financing arrangements (80.5) (58.7) Assets acquired under finance leases — (0.2) Changes in current liabilities related to capital expenditures 55.7 (1.2) Total capital expenditures $ 418.3 $ 432.0 (a) The amount presented for the nine months ended September 30, 2019 excludes the pre-acquisition property and equipment additions of UTS, which was acquired effective March 31, 2019. Revenue by Major Category Our revenue by major category for our reportable segments is set forth in the tables below. Three months ended September 30, 2020 C&W VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (a) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (b): Video $ 40.8 $ 91.9 $ 37.1 $ — $ 169.8 Broadband internet 72.2 97.5 52.5 — 222.2 Fixed-line telephony 22.6 19.0 6.5 — 48.1 Total subscription revenue 135.6 208.4 96.1 — 440.1 Non-subscription revenue (c) 13.1 5.4 4.2 — 22.7 Total residential fixed revenue 148.7 213.8 100.3 — 462.8 Residential mobile revenue: Service revenue (b) 110.7 13.8 — — 124.5 Interconnect, inbound roaming, equipment sales and other (d) (e) 20.8 2.0 — — 22.8 Total residential mobile revenue 131.5 15.8 — — 147.3 Total residential revenue 280.2 229.6 100.3 — 610.1 B2B revenue: Service revenue (f) 198.0 7.3 14.1 (0.3) 219.1 Subsea network revenue (g) 60.7 — — (2.4) 58.3 Total B2B revenue 258.7 7.3 14.1 (2.7) 277.4 Total $ 538.9 $ 236.9 $ 114.4 $ (2.7) $ 887.5 (a) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica. (b) Residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively. (c) Residential fixed non-subscription revenue primarily includes interconnect and advertising revenue. (d) During the third quarter of 2020, we began classifying revenue from inbound roaming from “mobile services revenue” to “mobile interconnect, inbound roaming, equipment sales and other” to better align with how management evaluates the business. Revenue from inbound roaming, which relates to the C&W segment, was $3 million during the three months ended September 30, 2020. (e) The total amount includes $7 million of revenue from sales of mobile handsets and other devices. (f) B2B service revenue primarily includes broadband internet, video, fixed-line telephony, mobile and managed services (including equipment installation contracts) offered to small (including small or home office), medium and large enterprises and, on a wholesale basis, other telecommunication operators. The total amount also includes $2 million of revenue from sales of mobile handsets and other devices to B2B mobile customers. (g) B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a 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 September 30, 2019 C&W VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (a) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (b): Video $ 45.3 $ 105.9 $ 35.3 $ — $ 186.5 Broadband internet 66.9 103.4 44.4 — 214.7 Fixed-line telephony 26.0 24.9 5.9 — 56.8 Total subscription revenue 138.2 234.2 85.6 — 458.0 Non-subscription revenue (c) 16.7 8.2 5.3 — 30.2 Total residential fixed revenue 154.9 242.4 90.9 — 488.2 Residential mobile revenue: Service revenue (b) 131.1 15.9 — — 147.0 Interconnect, inbound roaming, equipment sales and other (d) (e) 29.5 2.6 — — 32.1 Total residential mobile revenue 160.6 18.5 — — 179.1 Total residential revenue 315.5 260.9 90.9 — 667.3 B2B revenue: Service revenue (f) 218.8 7.5 13.4 (0.3) 239.4 Subsea network revenue (g) 61.6 — — (1.5) 60.1 Total B2B revenue 280.4 7.5 13.4 (1.8) 299.5 Total $ 595.9 $ 268.4 $ 104.3 $ (1.8) $ 966.8 (a) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica. (b) Residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively. (c) Residential fixed non-subscription revenue primarily includes interconnect and advertising revenue. (d) During the third quarter of 2020, we reclassified $10 million of inbound roaming revenue from “mobile services revenue” to “interconnect, inbound roaming, equipment sales and other.” (e) The total amount includes $10 million of revenue from sales of mobile handsets and other devices. (f) The total amount includes $7 million of revenue from sales of mobile handsets and other devices to B2B mobile customers. (g) B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. Nine months ended September 30, 2020 C&W VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (a) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue: Video $ 128.4 $ 274.4 $ 109.1 $ — $ 511.9 Broadband internet 213.7 285.2 147.2 — 646.1 Fixed-line telephony 71.1 57.8 18.6 — 147.5 Total subscription revenue 413.2 617.4 274.9 — 1,305.5 Non-subscription revenue 41.3 16.8 12.6 — 70.7 Total residential fixed revenue 454.5 634.2 287.5 — 1,376.2 Residential mobile revenue: Service revenue 338.1 42.2 — — 380.3 Interconnect, inbound roaming, equipment sales and other (b) (c) 64.6 5.6 — — 70.2 Total residential mobile revenue 402.7 47.8 — — 450.5 Total residential revenue 857.2 682.0 287.5 — 1,826.7 B2B revenue: Service revenue (d) 594.9 22.7 40.6 (1.1) 657.1 Subsea network revenue 190.7 — — (7.1) 183.6 Total B2B revenue 785.6 22.7 40.6 (8.2) 840.7 Total $ 1,642.8 $ 704.7 $ 328.1 $ (8.2) $ 2,667.4 (a) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica. (b) During the third quarter of 2020, we began classifying revenue from inbound roaming from “mobile services revenue” to “mobile interconnect, inbound roaming, equipment sales and other” to better align with how management evaluates the business. Revenue from inbound roaming, which relates to the C&W segment, was $12 million during the nine months ended September 30, 2020. (c) The total amount includes $23 million of revenue from sales of mobile handsets and other devices. (d) The total amount includes $8 million of revenue from sales of mobile handsets and other devices to B2B mobile customers. Nine months ended September 30, 2019 C&W (a) VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (b) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue: Video $ 136.0 $ 323.0 $ 105.6 $ — $ 564.6 Broadband internet 192.6 313.6 129.8 — 636.0 Fixed-line telephony 77.0 78.3 17.5 — 172.8 Total subscription revenue 405.6 714.9 252.9 — 1,373.4 Non-subscription revenue 46.6 25.2 16.2 — 88.0 Total residential fixed revenue 452.2 740.1 269.1 — 1,461.4 Residential mobile revenue: Service revenue 391.4 47.5 — — 438.9 Interconnect, inbound roaming, equipment sales and other (c) (d) 87.5 9.5 — — 97.0 Total residential mobile revenue 478.9 57.0 — — 535.9 Total residential revenue 931.1 797.1 269.1 — 1,997.3 B2B revenue: Service revenue (e) 658.1 22.3 37.6 (1.3) 716.7 Subsea network revenue 183.1 — — (4.7) 178.4 Total B2B revenue 841.2 22.3 37.6 (6.0) 895.1 Total $ 1,772.3 $ 819.4 $ 306.7 $ (6.0) $ 2,892.4 (a) The amounts presented exclude the pre-acquisition revenue of UTS, which was acquired effective March 31, 2019. (b) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica. (c) During the third quarter of 2020, we reclassified $27 million of inbound roaming revenue from “mobile services revenue” to “interconnect, inbound roaming, equipment sales and other.” (d) The total amount includes $30 million of revenue from sales of mobile handsets and other devices. (e) The total amount includes $20 million of revenue from sales of mobile handsets and other devices to B2B mobile customers. Geographic Markets The revenue from third-party customers for our geographic markets is set forth in the table below. Except as otherwise noted, the amounts presented include revenue from residential and B2B operations. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Panama $ 118.3 $ 136.8 $ 367.6 $ 419.7 Networks & LatAm (a) 84.9 88.3 265.4 264.5 Jamaica 93.8 95.3 277.5 287.6 The Bahamas 44.6 50.1 134.9 156.2 Barbados 34.9 37.4 105.2 112.3 Curacao (b) 34.8 37.4 106.9 81.9 Trinidad and Tobago 40.1 40.5 120.8 120.6 Chile 201.8 235.2 601.3 721.1 Costa Rica 35.1 33.3 103.4 98.3 Puerto Rico 114.0 104.0 327.0 305.4 Other (c) 85.2 108.5 257.4 324.8 Total $ 887.5 $ 966.8 $ 2,667.4 $ 2,892.4 (a) The amounts represent managed services and wholesale revenue from various jurisdictions across Latin America and the Caribbean, primarily related to the sale and lease of telecommunications capacity on C&W’s subsea and terrestrial fiber optic cable networks. (b) The amount presented for the nine months ended September 30, 2019 excludes the pre-acquisition revenue of UTS, which was acquired effective March 31, 2019. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Changes | Accounting Changes ASU 2018-15 In August 2018, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ( ASU 2018-15 ). ASU 2018-15 provides additional guidance on ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance (i) provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense, (ii) requires an entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement and (iii) clarifies the presentation requirements for reporting such costs in the entity’s financial statements. We adopted ASU 2018-15 effective January 1, 2020 on a prospective basis for all implementation costs incurred after the date of adoption and it did not have a material impact on our condensed consolidated financial statements. ASU 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments ( ASU 2016-13 ), as amended by (i) ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which amended certain effective dates, and (ii) ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies guidance around how to report expected recoveries. ASU 2016-13 replaces the incurred loss impairment methodology for recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We are required to use a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments. We adopted ASU 2016-13 effective January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to retained earnings to align our credit loss methodology with the new standard. The comparative information has not been restated and continues to be reported under the accounting standards in effect for that period. Under the new model, we segment our receivables, unbilled revenue and contract assets based on days past due and record an allowance for current expected credit losses using average rates applied against each account’s applicable aggregate balance for each aging bucket. We establish the average rates based on consideration of the actual credit loss experience over the prior 12-month period, recent collection trends, current economic conditions and reasonable expectations of future payment delinquency. The cumulative effect of the changes to our condensed consolidated balance sheet as of January 1, 2020 was not material. For information regarding changes to our accounting policies following the adoption of ASU 2016-13, see note 3. Recent Accounting Pronouncements ASU 2018-14 In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans ( ASU 2018-14 ), which removes and modifies certain existing disclosure requirements and adds new disclosure requirements related to employer sponsored defined benefit pension or other postretirement plans. ASU 2018-14 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect that ASU 2018-14 will have on our disclosures. ASU 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ( ASU 2019-12 ), which (i) simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods, and (ii) reduces the complexity in certain areas of existing tax guidance, including the recognition of deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. Although we are currently evaluating the effect that ASU 2019-12 will have on our consolidated financial statements, we do not expect it will have a material impact. ASU 2020-04 In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ( ASU 2020-04 ), which provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates, such as the London Inter-Bank Offered Rate ( LIBOR ), which regulators in the United Kingdom ( U.K. ) have announced will be phased out by the end of 2021. The expedients and exceptions provided by ASU 2020-04 are for the application of U.S. GAAP to contracts, hedging relationships and other transactions affected by the rate reform, and will not be available after December 31, 2022, other than for certain hedging relationships entered into before December 31, 2022. We do not currently expect that the phase out of LIBOR will have a material impact on our consolidated financial statements. ASU 2020-06 In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity: Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ( ASU 2020-06 ), which (i) reduces the number of accounting models for convertible instruments and allows more contracts to qualify for equity classification and (ii) makes targeted improvements to convertible instruments and earnings-per-share disclosure requirements. ASU 2020-06 is effective for annual reporting periods after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted, but no earlier than annual and interim periods in fiscal years beginning after December 15, 2020. While we are still evaluating the impact of ASU 2020-06, we do not currently expect it will have a material impact on our consolidated financial statements. |
Trade Receivables | Trade Receivables Our trade receivables are reported net of an allowance for credit losses. The allowance is established using our best estimates of current expected credit losses based upon, among other things, actual credit loss experience over the prior 12-month period, recent collection trends, prevailing and anticipated economic conditions and specific customer credit risk. Receivables outstanding greater than 30 days are considered past due and we generally write-off receivables after they become past due for 365 days, with the exception of certain amounts due from a single government. Concentration of credit risk with respect to trade receivables is limited due to the large number of customers and their dispersion across many different countries, with the exception of certain amounts due from a single government. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | Changes in the allowance for credit losses are set forth below (in millions): Balance at January 1, 2020 $ 87.3 Provision for expected losses 50.3 Write-offs (45.3) Foreign currency translation adjustments and other 4.5 Balance at September 30, 2020 $ 96.8 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | A summary of the purchase price and opening balance sheet of UTS at the effective March 31, 2019 acquisition date is presented in the following table. The opening balance sheet presented below reflects our final purchase price allocation (in millions): Cash $ 2.7 Trade receivables 19.0 Other current assets 6.7 Property and equipment 158.4 Goodwill (a) 17.1 Intangible assets subject to amortization 24.0 Other assets 18.2 Accounts payable (27.9) Other accrued and current liabilities (31.9) Other long-term liabilities (18.8) Noncontrolling interest (b) (11.6) Total purchase price (c) (d) $ 155.9 (a) The goodwill recognized in connection with the UTS Acquisition is primarily attributable to (i) the ability to take advantage of UTS’s existing broadband communications and mobile networks to gain immediate access to potential customers, and (ii) synergies that are expected to be achieved through the integration of UTS with C&W’s existing business in Curacao. (b) Amount represents the estimated aggregate fair value of the noncontrolling interest in UTS as of March 31, 2019. (c) Excludes $3 million of direct acquisition costs incurred during 2019 and 2018. Direct acquisition costs are included in impairment, restructuring and other operating items, net, in our condensed consolidated statements of operations. (d) Pursuant to the purchase agreement, which permits certain post-closing working capital adjustments, the UTS Acquisition purchase price was reduced by $6 million during the first quarter of 2020. This amount was received during the second quarter of 2020 and is included in investing activities in our condensed consolidated statement of cash flow. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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: September 30, 2020 December 31, 2019 Current (a) Long-term (a) Total Current (a) Long-term (a) Total in millions Assets: Cross-currency and interest rate derivative contracts (b) $ 3.4 $ 12.2 $ 15.6 $ 23.4 $ 126.9 $ 150.3 Foreign currency forward contracts 2.9 0.6 3.5 9.8 — 9.8 Total $ 6.3 $ 12.8 $ 19.1 $ 33.2 $ 126.9 $ 160.1 Liabilities: Cross-currency and interest rate derivative contracts (b) $ 72.1 $ 320.5 $ 392.6 $ 34.9 $ 99.6 $ 134.5 Foreign currency forward contracts 1.7 0.3 2.0 0.5 — 0.5 Total $ 73.8 $ 320.8 $ 394.6 $ 35.4 $ 99.6 $ 135.0 (a) Our current derivative assets, current derivative liabilities, long-term derivative assets and long-term derivative liabilities are included in other current assets, net, 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 9). The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in net gains of $1 million during each of the three months ended September 30, 2020 and 2019, and $41 million and $7 million during the nine months ended September 30, 2020 and 2019, respectively. The gains during the 2020 periods are primarily due to increased credit risk stemming from market reaction to the COVID-19 outbreak, as further described and defined in note 8. These amounts are included in realized and unrealized gains (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 gains (losses) on derivative instruments, net, are as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Cross-currency and interest rate derivative contracts (a) $ (70.7) $ 46.6 $ (234.7) $ (99.2) Foreign currency forward contracts and other (b) (7.4) 4.8 (5.0) 2.6 Total $ (78.1) $ 51.4 $ (239.7) $ (96.6) (a) The losses for the nine months ended September 30, 2020 include a realized gain of $71 million associated with the settlement of certain cross-currency interest rate swaps at VTR Finance in June 2020 that were unwound in connection with the July 2020 refinancing of certain VTR Finance debt. For additional information regarding the refinancing, see note 9. (b) Amounts include charges of $5 million and $11 million for the three and nine months ended September 30, 2020, respectively, and $2 million and $3 million during the three and nine months ended September 30, 2019, respectively, related to amortization of the premiums associated with our Weather Derivative contracts (the Weather Derivatives ), which we initially entered into during the second quarter of 2019. |
Schedule of Classification of the Net Cash Inflows (Outflows) of Our Derivative Instruments | The following table sets forth the classification of the net cash inflows of our derivative instruments: Nine months ended September 30, 2020 2019 in millions Operating activities $ (32.1) $ 7.6 Investing activities 7.4 4.5 Financing activities (a) 180.6 (0.3) Total $ 155.9 $ 11.8 (a) The 2020 amount is primarily related to the settlement of certain cross-currency interest rate swaps at VTR Finance. The settlement proceeds were used in part to redeem certain VTR Finance debt in July 2020, as further described in note 9. |
Schedule of 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 September 30, 2020: Borrowing group Notional amount Notional amount Weighted average remaining life in millions in years C&W $ 108.3 JMD 13,817.5 6.3 $ 56.3 COP 180,000.0 5.8 VTR Finance $ 1,150.0 CLP 933,800.0 5.8 Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W (a) $ 2,350.0 6.7 VTR Finance $ 179.6 2.4 Liberty Puerto Rico $ 1,000.0 5.8 Cabletica $ 53.5 2.8 (a) Includes forward-starting derivative instruments. Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W $ 1,510.0 0.3 Liberty Puerto Rico $ 1,000.0 0.3 |
Long-lived Assets (Tables)
Long-lived Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of our goodwill are set forth below: January 1, Acquisitions Impairments (a) Foreign September 30, in millions C&W $ 4,110.8 $ (12.0) $ (276.0) $ (90.2) $ 3,732.6 VTR/Cabletica 517.9 — — (24.5) 493.4 Liberty Puerto Rico 277.7 — — — 277.7 Total $ 4,906.4 $ (12.0) $ (276.0) $ (114.7) $ 4,503.7 (a) Amount represents impairment charges associated with various reporting units based primarily on the economic impacts associated with COVID-19, as further described below. |
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: September 30, December 31, in millions Distribution systems $ 4,420.4 $ 4,299.6 Customer premises equipment ( CPE ) 1,864.0 1,763.8 Support equipment, buildings and land 1,573.2 1,530.9 7,857.6 7,594.3 Accumulated depreciation (3,707.8) (3,293.2) Total $ 4,149.8 $ 4,301.1 |
Schedule of Intangible Assets Subject to Amortization | The details of our intangible assets subject to amortization are set forth below: September 30, December 31, in millions Gross carrying amount: Customer relationships $ 1,473.2 $ 1,482.9 Licenses and other 160.3 170.1 Total gross carrying amount 1,633.5 1,653.0 Accumulated amortization: Customer relationships (768.4) (645.5) Licenses and other (39.6) (38.3) Total accumulated amortization (808.0) (683.8) Net carrying amount $ 825.5 $ 969.2 |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt and Lease Obligation [Abstract] | |
Schedule of Debt | The U.S. dollar equivalents of the components of our debt are as follows: September 30, 2020 Estimated fair value (c) Principal amount Weighted Unused borrowing capacity (b) Borrowing currency US $ equivalent September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 in millions Convertible Notes (d) 2.00 % — $ — $ 329.3 $ 430.1 $ 402.5 $ 402.5 C&W Notes 6.74 % — — 2,362.7 2,270.9 2,270.0 2,120.0 C&W Credit Facilities 2.84 % $ 665.8 665.8 1,904.6 2,017.1 1,961.3 2,006.1 VTR Finance Notes 5.72 % — — 1,195.5 1,290.9 1,150.0 1,260.0 VTR Credit Facilities 4.80 % (e) 257.4 217.5 229.7 221.8 231.4 LPR Senior Secured Notes 6.75 % — — 1,347.4 1,278.3 1,290.0 1,200.0 LPR Credit Facilities 5.15 % $ 125.0 125.0 1,001.3 1,012.1 1,000.0 1,000.0 Cabletica Credit Facilities (f) 7.73 % $ 15.0 15.0 117.9 123.8 120.3 124.8 Vendor financing (g) 3.14 % — — 183.4 167.7 183.4 167.7 Total debt before premiums, discounts and deferred financing costs 5.20 % $ 1,063.2 $ 8,659.6 $ 8,820.6 $ 8,599.3 $ 8,512.5 The following table provides a reconciliation of total debt before premiums, discounts and deferred financing costs to total debt and finance lease obligations: September 30, 2020 December 31, 2019 in millions Total debt before premiums, discounts and deferred financing costs $ 8,599.3 $ 8,512.5 Premiums, discounts and deferred financing costs, net (141.3) (146.1) Total carrying amount of debt 8,458.0 8,366.4 Finance lease obligations 1.8 3.6 Total debt and finance lease obligations 8,459.8 8,370.0 Less: Current maturities of debt and finance lease obligations (284.4) (180.2) Long-term debt and finance lease obligations $ 8,175.4 $ 8,189.8 (a) Represents the weighted average interest rate in effect at September 30, 2020 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. (b) Unused borrowing capacity represents the maximum availability under the applicable facility at September 30, 2020 without regard to covenant compliance calculations or other conditions precedent to borrowing. At September 30, 2020, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after completion of the September 30, 2020 compliance reporting requirements. At September 30, 2020, there were no restrictions on the respective subsidiary’s ability to upstream cash 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 interest rate reflects the stated rate of the Convertible Notes. The effective interest rate of the Convertible Notes is 6.7%, which considers the impact of a discount recorded in connection with the value ascribed to the instrument’s conversion option. (e) The VTR Credit Facilities comprise certain CLP term loans and U.S. dollar and CLP revolving credit facilities, including unused borrowing capacity. (f) The Cabletica Credit Facilities comprise certain Costa Rican colón and U.S. dollar term loans and a U.S. dollar revolving credit facility. (g) Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our operating expenses and property and equipment additions. 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 include $78 million and $93 million for the nine months ended September 30, 2020 and 2019, respectively, that were financed by an intermediary and are reflected on the borrowing date 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 payments of principal amounts of debt and finance lease obligations in our condensed consolidated statements of cash flows. The details of our outstanding VTR Finance Notes as of September 30, 2020 are summarized in the following table: Maturity Interest Rate Outstanding principal amount Estimated fair value Carrying value (a) in millions 2028 VTR Senior Secured Notes January 15, 2028 5.125 % $ 600.0 $ 618.2 $ 596.9 2028 VTR Finance Senior Notes July 15, 2028 6.375 % $ 550.0 577.3 533.5 $ 1,150.0 $ 1,195.5 $ 1,130.4 (a) Amounts are net of deferred financing costs. |
Schedule of Line of Credit Facilities | The following table sets forth amounts related to the revolving credit facilities of each of our borrowing groups as further described above. US $ equivalent Credit Facility Aggregate facility amount Unused borrowing capacity Outstanding principal amount in millions C&W Revolving Credit Facility (a) $ 625.0 $ 525.0 $ 100.0 C&W Regional Facilities – Revolving credit facilities 144.6 140.8 3.8 VTR – Revolving credit facilities 257.4 257.4 — 2019 LPR Revolving Credit Facility 125.0 125.0 — Cabletica Revolving Credit Facility 15.0 15.0 — Total $ 1,167.0 $ 1,063.2 $ 103.8 (a) Subsequent to September 30, 2020, the $100 million of outstanding principal was repaid. |
Redemption Price | The 2028 VTR Senior Secured Notes may be redeemed, in whole or in part, at any time on or after July 15, 2023 at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid interest and additional amounts, if any, to the applicable redemption date, as set forth below: Redemption Price 12-month period commencing July 15: 2023 102.563% 2024 101.281% 2025 and thereafter 100.000% Redemption Price 12-month period commencing July 15: 2023 103.188% 2024 101.594% 2025 and thereafter 100.000% |
Schedule of Maturities of Debt | Maturities of our debt as of September 30, 2020 are presented below. Amounts presented below represent U.S. dollar equivalents based on September 30, 2020 exchange rates: C&W VTR Finance Liberty Puerto Rico Cabletica Liberty Latin America Consolidated in millions Years ending December 31: 2020 (remainder of year) $ 136.8 $ 24.9 $ — $ — $ 0.1 $ 161.8 2021 67.4 64.8 — — 0.5 132.7 2022 26.8 89.8 — — 0.7 117.3 2023 135.4 132.0 — 120.3 0.8 388.5 2024 70.6 — — — 402.9 473.5 2025 103.2 — — — — 103.2 Thereafter 3,782.3 1,150.0 2,290.0 — — 7,222.3 Total debt maturities 4,322.5 1,461.5 2,290.0 120.3 405.0 8,599.3 Premiums, discounts and deferred financing costs, net (29.5) (22.7) (22.0) (2.8) (64.3) (141.3) Total debt $ 4,293.0 $ 1,438.8 $ 2,268.0 $ 117.5 $ 340.7 $ 8,458.0 Current portion $ 193.6 $ 89.7 $ — $ — $ 0.2 $ 283.5 Noncurrent portion $ 4,099.4 $ 1,349.1 $ 2,268.0 $ 117.5 $ 340.5 $ 8,174.5 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Operating Lease Expense and Operating Cash Flows | The following table provides details of our operating lease expense: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Operating lease expense: Operating lease cost $ 10.3 $ 11.0 $ 32.9 $ 32.2 Short-term lease cost 3.5 3.6 9.7 7.6 Total operating lease expense $ 13.8 $ 14.6 $ 42.6 $ 39.8 The following table provides certain other details of our operating leases at September 30, 2020: For the nine months ended September 30, 2020 (in millions): Operating cash outflows from operating leases $ 29.1 Right-of-use assets obtained in exchange for new operating lease liabilities (a) $ 23.0 As of September 30, 2020 (in millions): Operating lease right-of-use assets (b) $ 143.4 Operating lease liabilities: Current (b) $ 31.6 Noncurrent (b) 111.6 Total operating lease liabilities $ 143.2 Weighted-average remaining lease term 6.4 years Weighted-average discount rate 6.5 % (a) Represents non-cash transactions associated with operating leases entered into during the nine months ended September 30, 2020. (b) Our operating lease right-of-use assets are included in other assets, net other accrued and current liabilities other long-term liabilities, |
Maturities of Operating Lease Liabilities | Maturities of our operating lease liabilities on an undiscounted basis as of September 30, 2020 are presented below along with the current and noncurrent operating lease liabilities on a discounted basis. Such amounts represent U.S. dollar equivalents (in millions) based on September 30, 2020 exchange rates. Years ending December 31: 2020 (remainder of year) $ 12.2 2021 35.4 2022 29.4 2023 23.4 2024 19.8 2025 13.5 Thereafter 43.1 Total operating lease liabilities on an undiscounted basis 176.8 Amount representing interest (33.6) Present value of operating lease liabilities $ 143.2 |
Restructuring Liabilities (Tabl
Restructuring Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes in Restructuring Liabilities | A summary of changes in our restructuring liability is set forth in the table below: Employee severance and termination Contract termination and other Total in millions Restructuring liability as of January 1, 2020 $ 19.0 $ 13.3 $ 32.3 Restructuring charges 4.7 7.2 11.9 UTS liabilities at acquisition date (a) 2.1 — 2.1 Cash paid (11.9) (7.4) (19.3) Foreign currency translation adjustments and other (5.2) 1.1 (4.1) Restructuring liability as of September 30, 2020 $ 8.7 $ 14.2 $ 22.9 Current portion $ 6.9 $ 12.7 $ 19.6 Noncurrent portion 1.8 1.5 3.3 Total $ 8.7 $ 14.2 $ 22.9 (a) Represents an adjustment related to the completion of our purchase price accounting for the UTS Acquisition, as further discussed in note 4. |
Programming and Other Direct _2
Programming and Other Direct Costs of Services (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Cost of Goods and Services Sold | Our programming and other direct costs of services by major category are set forth below. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Programming and copyright $ 96.0 $ 102.8 $ 289.5 $ 319.6 Interconnect and commissions 58.2 69.3 183.3 213.8 Equipment and other 35.5 43.6 107.4 130.7 Total programming and other direct costs $ 189.7 $ 215.7 $ 580.2 $ 664.1 |
Other Operating Costs and Exp_2
Other Operating Costs and Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense | Our other operating costs and expenses by major category are set forth below. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Personnel and contract labor $ 113.9 $ 126.4 $ 351.6 $ 374.4 Network-related 66.4 65.5 193.2 195.3 Service-related 35.2 41.6 110.0 116.1 Commercial 38.8 41.1 120.3 130.5 Facility, provision, franchise and other 83.3 96.8 255.4 279.1 Share-based compensation expense 28.0 15.1 75.3 45.2 Total other operating costs and expenses $ 365.6 $ 386.5 $ 1,105.8 $ 1,140.6 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of SARs | The following tables summarize the share-based incentive awards related to Liberty Latin America Class A and Class C common shares held by our employees and our board of directors ( Directors ) as of September 30, 2020: Number of Weighted average exercise price Weighted average remaining contractual term Share-based incentive award type in years Stock appreciation rights ( SARs ): Class A common shares: Outstanding 5,344,204 $ 17.19 5.3 Exercisable 1,867,282 $ 22.97 4.1 Class C common shares: Outstanding 10,688,103 $ 17.21 5.3 Exercisable 3,734,614 $ 22.99 4.1 |
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 485,752 2.1 Class C common shares 971,247 2.1 Performance-based restricted stock units ( PSUs ) outstanding: Class A common shares 497,015 0.7 Class C common shares 994,047 0.7 |
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 485,752 2.1 Class C common shares 971,247 2.1 Performance-based restricted stock units ( PSUs ) outstanding: Class A common shares 497,015 0.7 Class C common shares 994,047 0.7 |
Earnings or Loss per Share (Tab
Earnings or Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The details of our net earnings (loss) attributable to Liberty Latin America shareholders are set forth below: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Net loss $ (90.0) $ (69.7) $ (774.8) $ (222.1) Net loss attributable to noncontrolling interests 5.4 105.0 116.5 99.7 Net earnings (loss) attributable to Liberty Latin America shareholders $ (84.6) $ 35.3 $ (658.3) $ (122.4) The details of the calculations of our basic and diluted EPS for the three months ended September 30, 2019 are set forth below: Numerator: Net earnings attributable to holders of Liberty Latin America Shares (basic and diluted EPS computation, in millions) $ 35.3 Denominator: Weighted average shares (basic EPS computation) 184,452,387 Incremental shares attributable to the release of PSUs and RSUs upon vesting and the assumed exercise of outstanding options (treasury stock method) 354,838 Weighted average shares (diluted EPS computation) 184,807,225 |
Schedule of Weighted Average Shares Outstanding | The details of our weighted average shares outstanding are set forth below: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Weighted average shares outstanding: Basic 185,380,797 184,452,387 183,286,840 184,238,994 Diluted 185,380,797 184,807,225 183,286,840 184,238,994 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | The following table sets forth the U.S. dollar equivalents of such commitments as of September 30, 2020: Payments due during: Remainder of 2020 2021 2022 2023 2024 2025 Thereafter Total in millions Programming commitments $ 47.8 $ 114.4 $ 81.8 $ 48.1 $ 38.7 $ 0.5 $ — $ 331.3 Network and connectivity commitments 23.1 40.3 8.3 5.6 4.8 2.5 9.2 93.8 Purchase commitments 133.1 21.4 6.7 1.4 — — — 162.6 Other commitments 6.2 2.1 1.7 1.5 1.4 1.4 8.3 22.6 Total (a) $ 210.2 $ 178.2 $ 98.5 $ 56.6 $ 44.9 $ 4.4 $ 17.5 $ 610.3 (a) The commitments included in this table do not reflect any liabilities that are included in our September 30, 2020 condensed consolidated balance sheet. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Revenue and Adjusted OIBDA by Segment | The amounts presented below represent 100% of the revenue and Adjusted OIBDA of each of our reportable segments and our corporate operations. As we have the ability to control Cabletica 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 (i) certain subsidiaries of C&W and (ii) Cabletica are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations. Revenue Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions C&W (a) $ 538.9 $ 595.9 $ 1,642.8 $ 1,772.3 VTR/Cabletica 236.9 268.4 704.7 819.4 Liberty Puerto Rico 114.4 104.3 328.1 306.7 Intersegment eliminations (2.7) (1.8) (8.2) (6.0) Total $ 887.5 $ 966.8 $ 2,667.4 $ 2,892.4 (a) The amount presented for the nine months ended September 30, 2019 excludes the pre-acquisition revenue of UTS, which was acquired effective March 31, 2019. Adjusted OIBDA Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions C&W (a) $ 220.4 $ 236.2 $ 656.8 $ 694.1 VTR/Cabletica 92.9 108.5 272.6 327.7 Liberty Puerto Rico 58.1 50.8 161.0 150.3 Corporate (11.2) (15.8) (33.7) (39.2) Total $ 360.2 $ 379.7 $ 1,056.7 $ 1,132.9 (a) The amount presented for the nine months ended September 30, 2019 excludes the pre-acquisition Adjusted OIBDA of UTS, which was acquired effective March 31, 2019. |
Reconciliation of Total Adjusted OIBDA to Earnings (Loss) Before Income Taxes | The following table provides a reconciliation of total Adjusted OIBDA to operating income and to loss before income taxes: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Total Adjusted OIBDA $ 360.2 $ 379.7 $ 1,056.7 $ 1,132.9 Share-based compensation expense (28.0) (15.1) (75.3) (45.2) Depreciation and amortization (231.6) (226.0) (661.5) (665.3) Impairment, restructuring and other operating items, net (14.0) (208.3) (331.5) (235.3) Operating income (loss) 86.6 (69.7) (11.6) 187.1 Interest expense (129.9) (123.9) (408.5) (359.4) Realized and unrealized gains (losses) on derivative instruments, net (78.1) 51.4 (239.7) (96.6) Foreign currency transaction gains (losses), net 30.1 (110.8) (115.1) (98.1) Losses on debt modification and extinguishment (41.7) (3.5) (45.1) (13.0) Other income, net 0.2 4.4 11.8 9.4 Loss before income taxes $ (132.8) $ (252.1) $ (808.2) $ (370.6) |
Capital Expenditures of Reportable Segments | The property and equipment additions of our reportable segments and our corporate operations (including capital additions financed under vendor financing or finance lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our condensed consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing, see note 8. Nine months ended September 30, 2020 2019 in millions C&W (a) $ 234.1 $ 264.9 VTR/Cabletica 144.4 166.2 Liberty Puerto Rico 52.3 56.0 Corporate 12.3 5.0 Total property and equipment additions 443.1 492.1 Assets acquired under capital-related vendor financing arrangements (80.5) (58.7) Assets acquired under finance leases — (0.2) Changes in current liabilities related to capital expenditures 55.7 (1.2) Total capital expenditures $ 418.3 $ 432.0 |
Revenue by Major Category | Our revenue by major category for our reportable segments is set forth in the tables below. Three months ended September 30, 2020 C&W VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (a) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (b): Video $ 40.8 $ 91.9 $ 37.1 $ — $ 169.8 Broadband internet 72.2 97.5 52.5 — 222.2 Fixed-line telephony 22.6 19.0 6.5 — 48.1 Total subscription revenue 135.6 208.4 96.1 — 440.1 Non-subscription revenue (c) 13.1 5.4 4.2 — 22.7 Total residential fixed revenue 148.7 213.8 100.3 — 462.8 Residential mobile revenue: Service revenue (b) 110.7 13.8 — — 124.5 Interconnect, inbound roaming, equipment sales and other (d) (e) 20.8 2.0 — — 22.8 Total residential mobile revenue 131.5 15.8 — — 147.3 Total residential revenue 280.2 229.6 100.3 — 610.1 B2B revenue: Service revenue (f) 198.0 7.3 14.1 (0.3) 219.1 Subsea network revenue (g) 60.7 — — (2.4) 58.3 Total B2B revenue 258.7 7.3 14.1 (2.7) 277.4 Total $ 538.9 $ 236.9 $ 114.4 $ (2.7) $ 887.5 (a) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica. (b) Residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively. (c) Residential fixed non-subscription revenue primarily includes interconnect and advertising revenue. (d) During the third quarter of 2020, we began classifying revenue from inbound roaming from “mobile services revenue” to “mobile interconnect, inbound roaming, equipment sales and other” to better align with how management evaluates the business. Revenue from inbound roaming, which relates to the C&W segment, was $3 million during the three months ended September 30, 2020. (e) The total amount includes $7 million of revenue from sales of mobile handsets and other devices. (f) B2B service revenue primarily includes broadband internet, video, fixed-line telephony, mobile and managed services (including equipment installation contracts) offered to small (including small or home office), medium and large enterprises and, on a wholesale basis, other telecommunication operators. The total amount also includes $2 million of revenue from sales of mobile handsets and other devices to B2B mobile customers. (g) B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a 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 September 30, 2019 C&W VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (a) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (b): Video $ 45.3 $ 105.9 $ 35.3 $ — $ 186.5 Broadband internet 66.9 103.4 44.4 — 214.7 Fixed-line telephony 26.0 24.9 5.9 — 56.8 Total subscription revenue 138.2 234.2 85.6 — 458.0 Non-subscription revenue (c) 16.7 8.2 5.3 — 30.2 Total residential fixed revenue 154.9 242.4 90.9 — 488.2 Residential mobile revenue: Service revenue (b) 131.1 15.9 — — 147.0 Interconnect, inbound roaming, equipment sales and other (d) (e) 29.5 2.6 — — 32.1 Total residential mobile revenue 160.6 18.5 — — 179.1 Total residential revenue 315.5 260.9 90.9 — 667.3 B2B revenue: Service revenue (f) 218.8 7.5 13.4 (0.3) 239.4 Subsea network revenue (g) 61.6 — — (1.5) 60.1 Total B2B revenue 280.4 7.5 13.4 (1.8) 299.5 Total $ 595.9 $ 268.4 $ 104.3 $ (1.8) $ 966.8 (a) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica. (b) Residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively. (c) Residential fixed non-subscription revenue primarily includes interconnect and advertising revenue. (d) During the third quarter of 2020, we reclassified $10 million of inbound roaming revenue from “mobile services revenue” to “interconnect, inbound roaming, equipment sales and other.” (e) The total amount includes $10 million of revenue from sales of mobile handsets and other devices. (f) The total amount includes $7 million of revenue from sales of mobile handsets and other devices to B2B mobile customers. (g) B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. Nine months ended September 30, 2020 C&W VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (a) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue: Video $ 128.4 $ 274.4 $ 109.1 $ — $ 511.9 Broadband internet 213.7 285.2 147.2 — 646.1 Fixed-line telephony 71.1 57.8 18.6 — 147.5 Total subscription revenue 413.2 617.4 274.9 — 1,305.5 Non-subscription revenue 41.3 16.8 12.6 — 70.7 Total residential fixed revenue 454.5 634.2 287.5 — 1,376.2 Residential mobile revenue: Service revenue 338.1 42.2 — — 380.3 Interconnect, inbound roaming, equipment sales and other (b) (c) 64.6 5.6 — — 70.2 Total residential mobile revenue 402.7 47.8 — — 450.5 Total residential revenue 857.2 682.0 287.5 — 1,826.7 B2B revenue: Service revenue (d) 594.9 22.7 40.6 (1.1) 657.1 Subsea network revenue 190.7 — — (7.1) 183.6 Total B2B revenue 785.6 22.7 40.6 (8.2) 840.7 Total $ 1,642.8 $ 704.7 $ 328.1 $ (8.2) $ 2,667.4 (a) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica. (b) During the third quarter of 2020, we began classifying revenue from inbound roaming from “mobile services revenue” to “mobile interconnect, inbound roaming, equipment sales and other” to better align with how management evaluates the business. Revenue from inbound roaming, which relates to the C&W segment, was $12 million during the nine months ended September 30, 2020. (c) The total amount includes $23 million of revenue from sales of mobile handsets and other devices. (d) The total amount includes $8 million of revenue from sales of mobile handsets and other devices to B2B mobile customers. Nine months ended September 30, 2019 C&W (a) VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (b) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue: Video $ 136.0 $ 323.0 $ 105.6 $ — $ 564.6 Broadband internet 192.6 313.6 129.8 — 636.0 Fixed-line telephony 77.0 78.3 17.5 — 172.8 Total subscription revenue 405.6 714.9 252.9 — 1,373.4 Non-subscription revenue 46.6 25.2 16.2 — 88.0 Total residential fixed revenue 452.2 740.1 269.1 — 1,461.4 Residential mobile revenue: Service revenue 391.4 47.5 — — 438.9 Interconnect, inbound roaming, equipment sales and other (c) (d) 87.5 9.5 — — 97.0 Total residential mobile revenue 478.9 57.0 — — 535.9 Total residential revenue 931.1 797.1 269.1 — 1,997.3 B2B revenue: Service revenue (e) 658.1 22.3 37.6 (1.3) 716.7 Subsea network revenue 183.1 — — (4.7) 178.4 Total B2B revenue 841.2 22.3 37.6 (6.0) 895.1 Total $ 1,772.3 $ 819.4 $ 306.7 $ (6.0) $ 2,892.4 (a) The amounts presented exclude the pre-acquisition revenue of UTS, which was acquired effective March 31, 2019. (b) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica. (c) During the third quarter of 2020, we reclassified $27 million of inbound roaming revenue from “mobile services revenue” to “interconnect, inbound roaming, equipment sales and other.” (d) The total amount includes $30 million of revenue from sales of mobile handsets and other devices. (e) The total amount includes $20 million of revenue from sales of mobile handsets and other devices to B2B mobile customers. |
Revenue by Geographic Segments | The revenue from third-party customers for our geographic markets is set forth in the table below. Except as otherwise noted, the amounts presented include revenue from residential and B2B operations. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 in millions Panama $ 118.3 $ 136.8 $ 367.6 $ 419.7 Networks & LatAm (a) 84.9 88.3 265.4 264.5 Jamaica 93.8 95.3 277.5 287.6 The Bahamas 44.6 50.1 134.9 156.2 Barbados 34.9 37.4 105.2 112.3 Curacao (b) 34.8 37.4 106.9 81.9 Trinidad and Tobago 40.1 40.5 120.8 120.6 Chile 201.8 235.2 601.3 721.1 Costa Rica 35.1 33.3 103.4 98.3 Puerto Rico 114.0 104.0 327.0 305.4 Other (c) 85.2 108.5 257.4 324.8 Total $ 887.5 $ 966.8 $ 2,667.4 $ 2,892.4 (a) The amounts represent managed services and wholesale revenue from various jurisdictions across Latin America and the Caribbean, primarily related to the sale and lease of telecommunications capacity on C&W’s subsea and terrestrial fiber optic cable networks. (b) The amount presented for the nine months ended September 30, 2019 excludes the pre-acquisition revenue of UTS, which was acquired effective March 31, 2019. |
Basis of Presentation (Details)
Basis of Presentation (Details) | Sep. 30, 2020countrymarket |
Residential and Business-to-Business Services | |
Basis of Presentation [Line Items] | |
Number of countries in which entity provides services (over) | country | 20 |
C&W | Wholesale Communication Services | |
Basis of Presentation [Line Items] | |
Number of markets (over) | market | 40 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Changes in Allowance for Credit Loss (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
January 1, 2020 | $ 87.3 |
Provision for expected losses | 50.3 |
Write-offs | (45.3) |
Foreign currency translation adjustments and other | 4.5 |
September 30, 2020 | $ 96.8 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Jul. 30, 2020 | Oct. 09, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2020 | Sep. 30, 2019 |
Telefónica S.A. Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred | $ 500 | |||||
AT&T Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Enterprise value | $ 1,900 | |||||
Period for acquiree to provide services after acquisition close | 36 months | |||||
UTS | ||||||
Business Acquisition [Line Items] | ||||||
Enterprise value | $ 189 | |||||
Equity interest | 87.50% | 87.50% | ||||
Cash purchase price | $ 162 | |||||
Post -closing working capital adjustments | $ (6) | |||||
Equity interest, including subsequent acquisition | 100.00% | |||||
Liabilities incurred | 170 | |||||
Direct acquisition costs | $ 3 | $ 3 |
Acquisitions - Schedules (Detai
Acquisitions - Schedules (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,503.7 | $ 4,906.4 | |
UTS | |||
Business Acquisition [Line Items] | |||
Cash | $ 2.7 | ||
Trade receivables | 19 | ||
Other current assets | 6.7 | ||
Property and equipment | 158.4 | ||
Goodwill | 17.1 | ||
Intangible assets subject to amortization | 24 | ||
Other assets | 18.2 | ||
Accounts payable | (27.9) | ||
Other accrued and current liabilities | (31.9) | ||
Other long-term liabilities | (18.8) | ||
Noncontrolling interests | (11.6) | ||
Total purchase price | $ 155.9 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Current | $ 6.3 | $ 33.2 |
Long-term | 12.8 | 126.9 |
Total | 19.1 | 160.1 |
Liabilities: | ||
Current | 73.8 | 35.4 |
Long-term | 320.8 | 99.6 |
Total | 394.6 | 135 |
Cross-currency and interest rate derivative contracts | ||
Assets: | ||
Current | 3.4 | 23.4 |
Long-term | 12.2 | 126.9 |
Total | 15.6 | 150.3 |
Liabilities: | ||
Current | 72.1 | 34.9 |
Long-term | 320.5 | 99.6 |
Total | 392.6 | 134.5 |
Foreign currency forward contracts | ||
Assets: | ||
Current | 2.9 | 9.8 |
Long-term | 0.6 | 0 |
Total | 3.5 | 9.8 |
Liabilities: | ||
Current | 1.7 | 0.5 |
Long-term | 0.3 | 0 |
Total | $ 2 | $ 0.5 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Millions, $ in Billions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020CLP ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Exposure to counterparty credit risk | $ 2 | $ 2 | |||
Cross currency interest rate contract - credit risk valuation adjustments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) on credit risk derivatives | 1 | $ 1 | 41 | $ 7 | |
Foreign currency forward contracts and other | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of derivative | $ 247 | $ 247 | $ 192 | ||
Weighted average remaining life (in years) | 8 months 12 days |
Derivative Instruments - Realiz
Derivative Instruments - Realized and Unrealized Gains (Losses) on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments, net | $ (78.1) | $ 51.4 | $ (239.7) | $ (96.6) |
VTR Finance | ||||
Derivative [Line Items] | ||||
Realized gains (losses) | 71 | |||
Cross-currency and interest rate derivative contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments, net | (70.7) | 46.6 | (234.7) | (99.2) |
Foreign currency forward contracts and other | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments, net | (7.4) | 4.8 | (5) | 2.6 |
Amortization of premiums on derivative instruments | $ 5 | $ 2 | $ 11 | $ 3 |
Derivative Instruments - Net Ca
Derivative Instruments - Net Cash Received (Paid) Related to Derivatives (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Operating activities | $ (32.1) | $ 7.6 |
Investing activities | 7.4 | 4.5 |
Financing activities | 180.6 | (0.3) |
Total | $ 155.9 | $ 11.8 |
Derivative Instruments - Cross-
Derivative Instruments - Cross-currency Derivative Contracts (Details) - 9 months ended Sep. 30, 2020 $ in Millions, $ in Millions, $ in Millions, $ in Millions | USD ($) | JMD ($) | COP ($) | CLP ($) |
Cross-Currency Swap 1 | C&W | ||||
Derivative [Line Items] | ||||
Weighted average remaining life (in years) | 6 years 3 months 18 days | |||
Cross-Currency Swap 2 | C&W | ||||
Derivative [Line Items] | ||||
Weighted average remaining life (in years) | 5 years 9 months 18 days | |||
Cross-Currency Swap 3 | VTR Finance | ||||
Derivative [Line Items] | ||||
Weighted average remaining life (in years) | 5 years 9 months 18 days | |||
Notional amount due from counterparty | Cross-Currency Swap 1 | C&W | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 108.3 | |||
Notional amount due from counterparty | Cross-Currency Swap 2 | C&W | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | 56.3 | |||
Notional amount due from counterparty | Cross-Currency Swap 3 | VTR Finance | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 1,150 | |||
Notional amount due to counterparty | Cross-Currency Swap 1 | C&W | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 13,817.5 | |||
Notional amount due to counterparty | Cross-Currency Swap 2 | C&W | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 180,000 | |||
Notional amount due to counterparty | Cross-Currency Swap 3 | VTR Finance | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 933,800 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Derivative Contracts (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Interest Rate Swap | C&W | |
Derivative [Line Items] | |
Notional amount of derivative | $ 2,350 |
Weighted average remaining life (in years) | 6 years 8 months 12 days |
Interest Rate Swap | VTR Finance | |
Derivative [Line Items] | |
Notional amount of derivative | $ 179.6 |
Weighted average remaining life (in years) | 2 years 4 months 24 days |
Interest Rate Swap | Liberty Puerto Rico | |
Derivative [Line Items] | |
Notional amount of derivative | $ 1,000 |
Weighted average remaining life (in years) | 5 years 9 months 18 days |
Interest Rate Swap | Cabletica | |
Derivative [Line Items] | |
Notional amount of derivative | $ 53.5 |
Weighted average remaining life (in years) | 2 years 9 months 18 days |
Basis Swap | C&W | |
Derivative [Line Items] | |
Notional amount of derivative | $ 1,510 |
Weighted average remaining life (in years) | 3 months 18 days |
Basis Swap | Liberty Puerto Rico | |
Derivative [Line Items] | |
Notional amount of derivative | $ 1,000 |
Weighted average remaining life (in years) | 3 months 18 days |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2020 | Dec. 31, 2019USD ($) | |
Level 3 | Derivative Financial Instruments, Liabilities | Sable Currency Swaps | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Derivative instrument liability | $ 14 | $ 14 | $ 30 | |||
Net gains (losses) included in earnings | 3 | $ 7 | 16 | $ 12 | ||
Level 1 | Reported Value Measurement | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investments measured at fair value | $ 37 | $ 37 | $ 37 | |||
Fair Value, Nonrecurring | Discount rate | Minimum | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Discount rate on valuation intangibles | 0.089 | 0.089 | ||||
Fair Value, Nonrecurring | Discount rate | Maximum | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Discount rate on valuation intangibles | 10.3 | 10.3 | ||||
UTS | Fair Value, Nonrecurring | Customer relationships | Discount rate | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Business combination input | 0.135 |
Insurance Recoveries (Details)
Insurance Recoveries (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | $ 67 | |||
Recovery on damaged or destroyed property and equipment | $ 0 | $ 33.9 | ||
C&W | ||||
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | 37 | |||
Liberty Puerto Rico | ||||
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | 27 | |||
Corporate Operations | ||||
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | 3 | |||
Hurricanes | ||||
Business Interruption Loss [Line Items] | ||||
Recovery on damaged or destroyed property and equipment | 33 | |||
Recovery on damaged or destroyed property and equipment | $ 34 | |||
Hurricanes Maria and Irma | ||||
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | $ 109 | |||
Self-insurance paid | 30 | |||
Hurricane Matthew | ||||
Business Interruption Loss [Line Items] | ||||
Insurance recoveries | 12 | |||
Self-insurance paid | $ 15 |
Long-lived Assets - Goodwill (D
Long-lived Assets - Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 4,906.4 | |
Acquisitions and related adjustments | (12) | |
Impairments | (276) | |
Foreign currency translation adjustments and other | (114.7) | |
Ending balance | 4,503.7 | |
Accumulated goodwill impairments | 1,624 | $ 1,348 |
C&W | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,110.8 | |
Acquisitions and related adjustments | (12) | |
Impairments | (276) | |
Foreign currency translation adjustments and other | (90.2) | |
Ending balance | 3,732.6 | |
VTR/Cabletica | ||
Goodwill [Roll Forward] | ||
Beginning balance | 517.9 | |
Acquisitions and related adjustments | 0 | |
Impairments | 0 | |
Foreign currency translation adjustments and other | (24.5) | |
Ending balance | 493.4 | |
Liberty Puerto Rico | ||
Goodwill [Roll Forward] | ||
Beginning balance | 277.7 | |
Acquisitions and related adjustments | 0 | |
Impairments | 0 | |
Foreign currency translation adjustments and other | 0 | |
Ending balance | $ 277.7 |
Long-lived Assets - Property an
Long-lived Assets - Property and Equipment, Net (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 7,857.6 | $ 7,594.3 | |
Accumulated depreciation | (3,707.8) | (3,293.2) | |
Total | 4,149.8 | 4,301.1 | |
Non-cash increases related to vendor financing arrangements | 80.5 | $ 58.7 | |
Distribution systems | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4,420.4 | 4,299.6 | |
Customer premises equipment (CPE) | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,864 | 1,763.8 | |
Support equipment, buildings and land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,573.2 | $ 1,530.9 |
Long-lived Assets - Intangible
Long-lived Assets - Intangible Assets Subject to Amortization, Net (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement [Line Items] | ||
Gross carrying amount | $ 1,633.5 | $ 1,653 |
Accumulated amortization | (808) | (683.8) |
Total | 825.5 | 969.2 |
Customer relationships | ||
Statement [Line Items] | ||
Gross carrying amount | 1,473.2 | 1,482.9 |
Accumulated amortization | (768.4) | (645.5) |
Licenses and other | ||
Statement [Line Items] | ||
Gross carrying amount | 160.3 | 170.1 |
Accumulated amortization | $ (39.6) | $ (38.3) |
Debt and Finance Lease Obliga_3
Debt and Finance Lease Obligations - Components of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.20% | |
Unused borrowing capacity | $ 1,063.2 | |
Estimated fair value | 8,659.6 | $ 8,820.6 |
Total debt before premiums, discounts and deferred financing costs | 8,599.3 | 8,512.5 |
Premiums, discounts and deferred financing costs, net | (141.3) | (146.1) |
Total debt | 8,458 | 8,366.4 |
Finance lease obligations | 1.8 | 3.6 |
Total debt and finance lease obligations | 8,459.8 | 8,370 |
Less: Current maturities of debt and finance lease obligations | (284.4) | (180.2) |
Long-term debt and finance lease obligations | $ 8,175.4 | 8,189.8 |
Convertible Debt | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.00% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 329.3 | 430.1 |
Total debt before premiums, discounts and deferred financing costs | 402.5 | 402.5 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt before premiums, discounts and deferred financing costs | 1,150 | |
Total debt | $ 1,130.4 | |
Senior Notes | C&W Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.74% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 2,362.7 | 2,270.9 |
Total debt before premiums, discounts and deferred financing costs | 2,270 | 2,120 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Unused borrowing capacity | $ 1,063.2 | |
Line of Credit | C&W Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.84% | |
Unused borrowing capacity | $ 665.8 | |
Estimated fair value | 1,904.6 | 2,017.1 |
Total debt before premiums, discounts and deferred financing costs | $ 1,961.3 | 2,006.1 |
Line of Credit | VTR Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.80% | |
Unused borrowing capacity | $ 257.4 | |
Estimated fair value | 217.5 | 229.7 |
Total debt before premiums, discounts and deferred financing costs | $ 221.8 | 231.4 |
Line of Credit | LPR Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.75% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 1,347.4 | 1,278.3 |
Total debt before premiums, discounts and deferred financing costs | $ 1,290 | 1,200 |
Line of Credit | LPR Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.15% | |
Unused borrowing capacity | $ 125 | |
Estimated fair value | 1,001.3 | 1,012.1 |
Total debt before premiums, discounts and deferred financing costs | $ 1,000 | 1,000 |
Line of Credit | Cabletica Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 7.73% | |
Unused borrowing capacity | $ 15 | |
Estimated fair value | 117.9 | 123.8 |
Total debt before premiums, discounts and deferred financing costs | $ 120.3 | 124.8 |
Medium-term Notes | VTR Finance Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.72% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 1,195.5 | 1,290.9 |
Total debt before premiums, discounts and deferred financing costs | $ 1,150 | 1,260 |
Unsecured Debt | Vendor financing | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.14% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 183.4 | 167.7 |
Total debt before premiums, discounts and deferred financing costs | $ 183.4 | $ 167.7 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations - Components of Debt Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Convertible Debt | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.70% | |
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 | $ 78 | $ 93 |
Debt and Finance Lease Obliga_5
Debt and Finance Lease Obligations - Revolving Credit Facilities (Details) - Line of Credit - USD ($) | Sep. 30, 2020 | Jan. 31, 2020 |
Debt Instrument [Line Items] | ||
Aggregate facility amount | $ 1,167,000,000 | |
Unused borrowing capacity | 1,063,200,000 | |
Outstanding principal amount | 103,800,000 | |
C&W Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Aggregate facility amount | 625,000,000 | $ 625,000,000 |
Unused borrowing capacity | 525,000,000 | |
Outstanding principal amount | 100,000,000 | |
C&W Regional Facilities – Revolving credit facilities | ||
Debt Instrument [Line Items] | ||
Aggregate facility amount | 144,600,000 | |
Unused borrowing capacity | 140,800,000 | |
Outstanding principal amount | 3,800,000 | |
VTR Credit Facilities | ||
Debt Instrument [Line Items] | ||
Aggregate facility amount | 257,400,000 | |
Unused borrowing capacity | 257,400,000 | |
Outstanding principal amount | 0 | |
2019 LPR Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Aggregate facility amount | 125,000,000 | |
Unused borrowing capacity | 125,000,000 | |
Outstanding principal amount | 0 | |
Cabletica Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Aggregate facility amount | 15,000,000 | |
Unused borrowing capacity | 15,000,000 | |
Outstanding principal amount | $ 0 |
Debt and Finance Lease Obliga_6
Debt and Finance Lease Obligations - Convertible Notes (Details) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2020USD ($)shares | Jun. 30, 2019USD ($)$ / shares | Sep. 30, 2020USD ($)shares | |
Debt Instrument [Line Items] | |||
Common stock, shares issued (in shares) | shares | 49,049,073 | ||
Class C | |||
Debt Instrument [Line Items] | |||
Common stock, shares issued (in shares) | shares | 49,049,073 | ||
Convertible Debt | Convertible Notes | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 403,000,000 | ||
Interest Rate | 2.00% | ||
Conversion ratio | 0.0484315 | 0.0449767 | |
Conversion price (in dollars per share) | $ / shares | $ 22.23 | ||
Equity component of convertible debt | $ 78,000,000 | ||
Carrying amount of convertible note | $ 338,000,000 | $ 338,000,000 | |
Unamortized discount | $ 61,000,000 | $ 61,000,000 |
Debt and Finance Lease Obliga_7
Debt and Finance Lease Obligations - Narrative (Details) - USD ($) | Jul. 31, 2020 | Nov. 04, 2020 | Jul. 31, 2020 | Jan. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | May 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||||||||
Outstanding principal amount | $ 8,599,300,000 | $ 8,599,300,000 | $ 8,512,500,000 | |||||||||
Gain (loss) on extinguishment of debt | (41,700,000) | $ (3,500,000) | (45,100,000) | $ (13,000,000) | ||||||||
Proceeds from derivative Instruments | $ 187,000,000 | |||||||||||
2028 VTR Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percent of principal amount maximum | 40.00% | 40.00% | ||||||||||
2028 VTR Finance Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percent of principal amount maximum | 40.00% | 40.00% | ||||||||||
Medium-term Notes | C&W Term Loan B-5 Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.25% | |||||||||||
Face amount of debt | $ 1,510,000,000 | |||||||||||
Medium-term Notes | C&W Regional Facilities, Extended Maturity | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 100,000,000 | |||||||||||
Medium-term Notes | VTR RCF – B | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding principal amount | $ 200,000,000 | $ 92,000,000 | ||||||||||
Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding principal amount | 1,150,000,000 | 1,150,000,000 | ||||||||||
Net proceeds from issuance of debt | $ 1,133,000,000 | |||||||||||
Senior Notes | 2027 LPR Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 150,000,000 | |||||||||||
Senior Notes | 2027 C&W Senior Notes Add-on | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Original issue price | 106.00% | |||||||||||
Senior Notes | 2028 VTR Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 600,000,000 | $ 600,000,000 | ||||||||||
Outstanding principal amount | $ 600,000,000 | $ 600,000,000 | ||||||||||
Interest Rate | 5.125% | 5.125% | 5.125% | 5.125% | ||||||||
Percent of principal amount redeemed | 10.00% | |||||||||||
Senior Notes | 2028 VTR Senior Secured Notes | Debt Instrument, Redemption, Period Four | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Redemption price, percentage | 103.00% | |||||||||||
Senior Notes | 2028 VTR Senior Secured Notes | Debt Instrument, Redemption, Period Three | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Redemption price, percentage | 100.00% | 100.00% | ||||||||||
Senior Notes | 2028 VTR Senior Secured Notes | Debt Instrument, Redemption, Period Five | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percent of principal amount maximum | 105.125% | 105.125% | ||||||||||
Senior Notes | 2028 VTR Finance Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 550,000,000 | $ 550,000,000 | ||||||||||
Outstanding principal amount | $ 550,000,000 | $ 550,000,000 | ||||||||||
Gain (loss) on extinguishment of debt | $ 42,000,000 | |||||||||||
Interest Rate | 6.375% | 6.375% | 6.375% | 6.375% | ||||||||
Repayments of long-term debt | $ 1,260,000,000 | |||||||||||
Redemption premium | 29,000,000 | |||||||||||
Rights offering finance acquisitions | $ 550,000,000 | |||||||||||
Senior Notes | 2028 VTR Finance Senior Notes | Debt Instrument, Redemption, Period Three | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Redemption price, percentage | 100.00% | |||||||||||
Senior Notes | 2028 VTR Finance Senior Notes | Debt Instrument, Redemption, Period Five | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percent of principal amount maximum | 106.375% | 106.375% | ||||||||||
Senior Notes | LCPR Senior Secured Financing | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 90,000,000 | |||||||||||
Original issue price | 102.50% | |||||||||||
Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unused borrowing capacity | $ 1,063,200,000 | $ 1,063,200,000 | ||||||||||
Aggregate facility amount | 1,167,000,000 | 1,167,000,000 | ||||||||||
Line of Credit | C&W Term Loan B-4 Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding principal amount | 1,640,000,000 | 1,640,000,000 | ||||||||||
Gain (loss) on extinguishment of debt | (3,000,000) | |||||||||||
Line of Credit | C&W Revolving Credit Facility, Extended Maturity | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unused borrowing capacity | $ 575,000,000 | |||||||||||
Line of Credit | C&W Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding principal amount | 313,000,000 | |||||||||||
Unused borrowing capacity | 525,000,000 | 525,000,000 | ||||||||||
Aggregate facility amount | $ 625,000,000 | 625,000,000 | 625,000,000 | |||||||||
Repaid amount drawn | 213,000,000 | |||||||||||
Line of Credit | C&W Revolving Credit Facility | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repaid amount drawn | $ 100,000,000 | |||||||||||
Line of Credit | 2019 LPR Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding principal amount | $ 63,000,000 | |||||||||||
Unused borrowing capacity | 125,000,000 | 125,000,000 | ||||||||||
Aggregate facility amount | $ 125,000,000 | $ 125,000,000 |
Debt and Finance Lease Obliga_8
Debt and Finance Lease Obligations - Redemption Rights (Details) - Senior Notes | Jul. 31, 2020 | Jul. 31, 2020 |
2028 VTR Senior Secured Notes | 2023 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 102.563% | |
2028 VTR Senior Secured Notes | 2024 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 101.281% | |
2028 VTR Senior Secured Notes | 2025 and thereafter | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 100.00% | 100.00% |
2028 VTR Finance Senior Notes | 2023 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 103.188% | |
2028 VTR Finance Senior Notes | 2024 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 101.594% | |
2028 VTR Finance Senior Notes | 2025 and thereafter | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 100.00% |
Debt and Finance Lease Obliga_9
Debt and Finance Lease Obligations - VTR Finance Senior Note (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jul. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Outstanding principal amount | $ 8,599.3 | $ 8,512.5 | |
Carrying value | 8,458 | $ 8,366.4 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Outstanding principal amount | 1,150 | ||
Estimated fair value | 1,195.5 | ||
Carrying value | $ 1,130.4 | ||
2028 VTR Senior Secured Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.125% | 5.125% | |
Outstanding principal amount | $ 600 | ||
Estimated fair value | 618.2 | ||
Carrying value | $ 596.9 | ||
2028 VTR Finance Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.375% | 6.375% | |
Outstanding principal amount | $ 550 | ||
Estimated fair value | 577.3 | ||
Carrying value | $ 533.5 |
Debt and Finance Lease Oblig_10
Debt and Finance Lease Obligations - Maturities of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt maturities | $ 8,599.3 | $ 8,512.5 |
Premiums, discounts and deferred financing costs, net | (141.3) | (146.1) |
Total debt | 8,458 | $ 8,366.4 |
C&W | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 136.8 | |
2021 | 67.4 | |
2022 | 26.8 | |
2023 | 135.4 | |
2024 | 70.6 | |
2025 | 103.2 | |
Thereafter | 3,782.3 | |
Total debt maturities | 4,322.5 | |
Premiums, discounts and deferred financing costs, net | (29.5) | |
Total debt | 4,293 | |
Current portion | 193.6 | |
Noncurrent portion | 4,099.4 | |
VTR Finance | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 24.9 | |
2021 | 64.8 | |
2022 | 89.8 | |
2023 | 132 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 1,150 | |
Total debt maturities | 1,461.5 | |
Premiums, discounts and deferred financing costs, net | (22.7) | |
Total debt | 1,438.8 | |
Current portion | 89.7 | |
Noncurrent portion | 1,349.1 | |
Liberty Puerto Rico | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 2,290 | |
Total debt maturities | 2,290 | |
Premiums, discounts and deferred financing costs, net | (22) | |
Total debt | 2,268 | |
Current portion | 0 | |
Noncurrent portion | 2,268 | |
Cabletica | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 120.3 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total debt maturities | 120.3 | |
Premiums, discounts and deferred financing costs, net | (2.8) | |
Total debt | 117.5 | |
Current portion | 0 | |
Noncurrent portion | 117.5 | |
Liberty Latin America | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 0.1 | |
2021 | 0.5 | |
2022 | 0.7 | |
2023 | 0.8 | |
2024 | 402.9 | |
2025 | 0 | |
Thereafter | 0 | |
Total debt maturities | 405 | |
Premiums, discounts and deferred financing costs, net | (64.3) | |
Total debt | 340.7 | |
Current portion | 0.2 | |
Noncurrent portion | 340.5 | |
Consolidated | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 161.8 | |
2021 | 132.7 | |
2022 | 117.3 | |
2023 | 388.5 | |
2024 | 473.5 | |
2025 | 103.2 | |
Thereafter | 7,222.3 | |
Total debt maturities | 8,599.3 | |
Premiums, discounts and deferred financing costs, net | (141.3) | |
Total debt | 8,458 | |
Current portion | 283.5 | |
Noncurrent portion | $ 8,174.5 |
Leases - Lease Expense and Cash
Leases - Lease Expense and Cash Flows from Operating Lease (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating lease cost | $ 10.3 | $ 11 | $ 32.9 | $ 32.2 | |
Short-term lease cost | 3.5 | 3.6 | 9.7 | 7.6 | |
Total operating lease expense | 13.8 | $ 14.6 | 42.6 | $ 39.8 | |
Operating cash outflows from operating leases | 29.1 | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 23 | ||||
Operating lease right-of-use assets | 143.4 | 143.4 | |||
Current | 31.6 | 31.6 | |||
Noncurrent | 111.6 | 111.6 | |||
Present value of operating lease liabilities | $ 143.2 | $ 143.2 | |||
Weighted-average remaining lease term (in years) | 6 years 4 months 24 days | 6 years 4 months 24 days | |||
Weighted-average discount rate | 6.50% | 6.50% | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | us-gaap:OtherAssets | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Leases - Lease Maturities of Op
Leases - Lease Maturities of Operating Lease Liabilities (Details) $ in Millions | Sep. 30, 2020USD ($) |
Operating leases | |
2020 (remainder of year) | $ 12.2 |
2021 | 35.4 |
2022 | 29.4 |
2023 | 23.4 |
2024 | 19.8 |
2025 | 13.5 |
Thereafter | 43.1 |
Total operating lease liabilities on an undiscounted basis | 176.8 |
Amount representing interest | (33.6) |
Present value of operating lease liabilities | $ 143.2 |
Unfulfilled Performance Oblig_2
Unfulfilled Performance Obligations (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 415 |
Unfulfilled performance obligations, term | six years |
Restructuring Liabilities (Deta
Restructuring Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring liability as of January 1, 2020 | $ 32.3 | |
Restructuring charges | 11.9 | |
UTS liabilities at acquisition date | 2.1 | |
Cash paid | (19.3) | |
Foreign currency translation adjustments and other | (4.1) | |
Restructuring liability as of September 30, 2020 | 22.9 | |
Current portion | $ 19.6 | |
Noncurrent portion | 3.3 | |
Total | 22.9 | 22.9 |
Employee severance and termination | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability as of January 1, 2020 | 19 | |
Restructuring charges | 4.7 | |
UTS liabilities at acquisition date | 2.1 | |
Cash paid | (11.9) | |
Foreign currency translation adjustments and other | (5.2) | |
Restructuring liability as of September 30, 2020 | 8.7 | |
Current portion | 6.9 | |
Noncurrent portion | 1.8 | |
Total | 8.7 | 8.7 |
Contract termination and other | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability as of January 1, 2020 | 13.3 | |
Restructuring charges | 7.2 | |
UTS liabilities at acquisition date | 0 | |
Cash paid | (7.4) | |
Foreign currency translation adjustments and other | 1.1 | |
Restructuring liability as of September 30, 2020 | 14.2 | |
Current portion | 12.7 | |
Noncurrent portion | 1.5 | |
Total | 14.2 | $ 14.2 |
Employee Severance and Termination, Pension | C&W | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 2 |
Programming and Other Direct _3
Programming and Other Direct Costs of Services (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Line Items] | ||||
Programming and other direct costs of services | $ 189.7 | $ 215.7 | $ 580.2 | $ 664.1 |
Programming and copyright | ||||
Other Income and Expenses [Line Items] | ||||
Programming and other direct costs of services | 96 | 102.8 | 289.5 | 319.6 |
Interconnect and commissions | ||||
Other Income and Expenses [Line Items] | ||||
Programming and other direct costs of services | 58.2 | 69.3 | 183.3 | 213.8 |
Equipment and other | ||||
Other Income and Expenses [Line Items] | ||||
Programming and other direct costs of services | $ 35.5 | $ 43.6 | $ 107.4 | $ 130.7 |
Other Operating Costs and Exp_3
Other Operating Costs and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Personnel and contract labor | $ 113.9 | $ 126.4 | $ 351.6 | $ 374.4 |
Network-related | 66.4 | 65.5 | 193.2 | 195.3 |
Service-related | 35.2 | 41.6 | 110 | 116.1 |
Commercial | 38.8 | 41.1 | 120.3 | 130.5 |
Facility, provision, franchise and other | 83.3 | 96.8 | 255.4 | 279.1 |
Share-based compensation expense | 28 | 15.1 | 75.3 | 45.2 |
Other operating costs and expenses | $ 365.6 | $ 386.5 | $ 1,105.8 | $ 1,140.6 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (42.8) | $ (182.4) | $ (33.4) | $ (148.5) |
Effective income tax rate | (32.20%) | (72.40%) | (4.10%) | (40.10%) |
Imposed under recent tax reforms | $ 20 | $ 20 | ||
Reduction in uncertain tax positions | $ 244 | $ 18 | ||
Tax adjustments, settlements, and unusual provisions | $ 185 |
Share-based Compensation - SARs
Share-based Compensation - SARs (Details) - SARs | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Class A | |
Number of shares | |
Outstanding (in shares) | shares | 5,344,204 |
Exercisable (in shares) | shares | 1,867,282 |
Weighted average exercise price | |
Outstanding (in dollars per share) | $ 17.19 |
Exercisable (in dollars per share) | $ 22.97 |
Weighted average remaining contractual term, outstanding | 5 years 3 months 18 days |
Weighted average remaining contractual term, Exercisable | 4 years 1 month 6 days |
Granted (in shares) | shares | 2,121,070 |
Granted, weighted average exercise price (in dollars per share) | $ 10.42 |
Granted, weighted average grant-date fair value (in dollars per share) | $ 7.11 |
Class C | |
Number of shares | |
Outstanding (in shares) | shares | 10,688,103 |
Exercisable (in shares) | shares | 3,734,614 |
Weighted average exercise price | |
Outstanding (in dollars per share) | $ 17.21 |
Exercisable (in dollars per share) | $ 22.99 |
Weighted average remaining contractual term, outstanding | 5 years 3 months 18 days |
Weighted average remaining contractual term, Exercisable | 4 years 1 month 6 days |
Granted (in shares) | shares | 4,242,140 |
Granted, weighted average exercise price (in dollars per share) | $ 10.47 |
Granted, weighted average grant-date fair value (in dollars per share) | $ 4.39 |
Share-based Compensation - RSUs
Share-based Compensation - RSUs and PSUs (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted average remaining contractual term, in years | |||||
Share-based compensation expense | $ 28 | $ 15.1 | $ 75.3 | $ 45.2 | |
Liberty Global | |||||
Weighted average remaining contractual term, in years | |||||
Award expiration period | 10 years | 7 years | |||
Share-based compensation expense | $ 7 | ||||
RSUs | Class A | |||||
Number of shares | |||||
Outstanding (in shares) | 485,752 | 485,752 | |||
Weighted average remaining contractual term, in years | |||||
Weighted average remaining contractual term | 2 years 1 month 6 days | ||||
Granted (in shares) | 665,569 | ||||
Granted, weighted average exercise price (in dollars per share) | $ 10.17 | ||||
RSUs | Class C | |||||
Number of shares | |||||
Outstanding (in shares) | 971,247 | 971,247 | |||
Weighted average remaining contractual term, in years | |||||
Weighted average remaining contractual term | 2 years 1 month 6 days | ||||
Granted (in shares) | 1,331,138 | ||||
Granted, weighted average exercise price (in dollars per share) | $ 10.23 | ||||
PSUs | Class A | |||||
Number of shares | |||||
Outstanding (in shares) | 497,015 | 497,015 | |||
Weighted average remaining contractual term, in years | |||||
Weighted average remaining contractual term | 8 months 12 days | ||||
PSUs | Class C | |||||
Number of shares | |||||
Outstanding (in shares) | 994,047 | 994,047 | |||
Weighted average remaining contractual term, in years | |||||
Weighted average remaining contractual term | 8 months 12 days |
Earnings or Loss per Share (Det
Earnings or Loss per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net loss | $ (90) | $ (69.7) | $ (774.8) | $ (222.1) |
Net Income (Loss) Attributable to Noncontrolling Interest | 5.4 | 105 | 116.5 | 99.7 |
Net earnings (loss) attributable to Liberty Latin America shareholders | $ (84.6) | $ 35.3 | $ (658.3) | $ (122.4) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 185,380,797 | 184,452,387 | 183,286,840 | 184,238,994 |
Diluted (in shares) | 185,380,797 | 184,807,225 | 183,286,840 | 184,238,994 |
Weighted average interest rate | 5.20% | 5.20% | ||
Incremental shares attributable to the release of PSUs and RSUs upon vesting and the assumed exercise of outstanding options (treasury stock method) | 354,838 | |||
Class C | ||||
Weighted average shares outstanding: | ||||
Common stock, shares authorized (in shares) | 19,500,000 | 19,500,000 | ||
Convertible Notes | Convertible Debt | ||||
Weighted average shares outstanding: | ||||
Weighted average interest rate | 2.00% | 2.00% | ||
Convertible Notes | ||||
Weighted average shares outstanding: | ||||
Securities excluded (in shares) | 18,100,000 | |||
Options, SARs and RSUs | ||||
Weighted average shares outstanding: | ||||
Securities excluded (in shares) | 15,800,000 | 19,400,000 | 15,900,000 | |
PSUs | ||||
Weighted average shares outstanding: | ||||
Securities excluded (in shares) | 500,000 | 1,500,000 | 2,300,000 |
Equity - Share Repurchase Progr
Equity - Share Repurchase Program (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Mar. 16, 2020 | |
Class of Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 100,000,000 | |
Stock repurchased program, remaining authorized repurchase amount | $ 91,000,000 | |
Class A | ||
Class of Stock [Line Items] | ||
Number of shares repurchased (in shares) | 293,816 | |
Class C | ||
Class of Stock [Line Items] | ||
Number of shares repurchased (in shares) | 673,158 |
Equity - Right Offering (Detail
Equity - Right Offering (Details) $ / shares in Units, $ in Millions | Aug. 05, 2020$ / sharesshares | Sep. 30, 2020USD ($)shares |
Equity [Abstract] | ||
Rights offering distribution (in shares) | 0.269 | |
Number of shares entitled to be bought by each class C right (in shares) | 1 | |
Subscription price (in shares) | $ / shares | $ 7.14 | |
Weighted average trading price | 25.00% | |
Threshold trading day | 3 days | |
Common stock, shares issued (in shares) | 49,049,073 | |
Rights offering finance acquisitions | $ | $ 350 |
Equity - Capped Calls (Details)
Equity - Capped Calls (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 25, 2020 | Sep. 30, 2019 |
Class of Stock [Line Items] | ||||
Adjustments to additional paid in capital capped calls | $ 45.6 | |||
Class C | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 19,500,000 | |||
Option indexed to issuers equity, strike price (in dollars per share) | $ 20.65 | $ 22.2337 | ||
Option indexed to issuers equity, cap price (in dollars per share) | $ 31.7625 | |||
Adjustments to additional paid in capital capped calls | $ 46 | $ 46 | ||
Class C | Minimum | ||||
Class of Stock [Line Items] | ||||
Option indexed to issuers equity, cap price (in dollars per share) | 28 | |||
Class C | Maximum | ||||
Class of Stock [Line Items] | ||||
Option indexed to issuers equity, cap price (in dollars per share) | $ 29.50 |
Equity - Conversion Option - Co
Equity - Conversion Option - Convertible Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | |
Class of Stock [Line Items] | |||
Conversion Option, net | $ 77.3 | ||
Convertible Notes | Convertible Debt | |||
Class of Stock [Line Items] | |||
Conversion Option, net | $ 77 | $ 77 | |
Convertible notes transaction fees and costs | $ 1 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) $ in Millions | Sep. 30, 2020USD ($) |
Purchase commitments | |
Remainder of 2020 | $ 133.1 |
2021 | 21.4 |
2022 | 6.7 |
2023 | 1.4 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total | 162.6 |
Other commitments | |
Remainder of 2020 | 6.2 |
2021 | 2.1 |
2022 | 1.7 |
2023 | 1.5 |
2024 | 1.4 |
2025 | 1.4 |
Thereafter | 8.3 |
Total | 22.6 |
Total | |
Remainder of 2020 | 210.2 |
2021 | 178.2 |
2022 | 98.5 |
2023 | 56.6 |
2024 | 44.9 |
2025 | 4.4 |
Thereafter | 17.5 |
Total | 610.3 |
Programming commitments | |
Programming and network commitments | |
Remainder of 2020 | 47.8 |
2021 | 114.4 |
2022 | 81.8 |
2023 | 48.1 |
2024 | 38.7 |
2025 | 0.5 |
Thereafter | 0 |
Total | 331.3 |
Network and connectivity commitments | |
Programming and network commitments | |
Remainder of 2020 | 23.1 |
2021 | 40.3 |
2022 | 8.3 |
2023 | 5.6 |
2024 | 4.8 |
2025 | 2.5 |
Thereafter | 9.2 |
Total | $ 93.8 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2020 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Programming and copyright costs | $ 290 | $ 320 | |
Number of file claims | 2 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020countrymarket | |
Segment Reporting Information [Line Items] | |
Percentage of minority interest revenues and adjusted OBIDA included in net earnings attributable to noncontrolling interest | 100.00% |
Percentage of minority interest revenues and expenses included in net earnings attributable to noncontrolling interest | 100.00% |
Residential and Business-to-Business Services | |
Segment Reporting Information [Line Items] | |
Number of countries in which entity provides services (over) | country | 20 |
C&W | Wholesale Communication Services | |
Segment Reporting Information [Line Items] | |
Number of markets (over) | market | 40 |
Segment Reporting - Performance
Segment Reporting - Performance Measures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 887.5 | $ 966.8 | $ 2,667.4 | $ 2,892.4 |
Adjusted OIBDA | 360.2 | 379.7 | 1,056.7 | 1,132.9 |
Operating Segments | C&W | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 538.9 | 595.9 | 1,642.8 | 1,772.3 |
Adjusted OIBDA | 220.4 | 236.2 | 656.8 | 694.1 |
Operating Segments | VTR/Cabletica | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 236.9 | 268.4 | 704.7 | 819.4 |
Adjusted OIBDA | 92.9 | 108.5 | 272.6 | 327.7 |
Operating Segments | Liberty Puerto Rico | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 114.4 | 104.3 | 328.1 | 306.7 |
Adjusted OIBDA | 58.1 | 50.8 | 161 | 150.3 |
Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (2.7) | (1.8) | (8.2) | (6) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA | $ (11.2) | $ (15.8) | $ (33.7) | $ (39.2) |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Cash Flow to Earnings from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | ||||
Total Adjusted OIBDA | $ 360.2 | $ 379.7 | $ 1,056.7 | $ 1,132.9 |
Share-based compensation expense | (28) | (15.1) | (75.3) | (45.2) |
Depreciation and amortization | (231.6) | (226) | (661.5) | (665.3) |
Impairment, restructuring and other operating items, net | (14) | (208.3) | (331.5) | (235.3) |
Operating income (loss) | 86.6 | (69.7) | (11.6) | 187.1 |
Interest expense | (129.9) | (123.9) | (408.5) | (359.4) |
Realized and unrealized gains (losses) on derivative instruments, net | (78.1) | 51.4 | (239.7) | (96.6) |
Foreign currency transaction gains (losses), net | 30.1 | (110.8) | (115.1) | (98.1) |
Losses on debt modification and extinguishment | (41.7) | (3.5) | (45.1) | (13) |
Other income, net | 0.2 | 4.4 | 11.8 | 9.4 |
Loss before income taxes | $ (132.8) | $ (252.1) | $ (808.2) | $ (370.6) |
Segment Reporting - Property an
Segment Reporting - Property and Equipment Additions of our Reportable Segments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | $ 443.1 | $ 492.1 |
Assets acquired under capital-related vendor financing arrangements | (80.5) | (58.7) |
Assets acquired under finance leases | 0 | (0.2) |
Changes in current liabilities related to capital expenditures | 55.7 | (1.2) |
Total capital expenditures | 418.3 | 432 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | 12.3 | 5 |
C&W | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | 234.1 | 264.9 |
VTR/Cabletica | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | 144.4 | 166.2 |
Liberty Puerto Rico | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | $ 52.3 | $ 56 |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Major Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Principal Transaction Revenue [Line Items] | ||||
Revenue | $ 887.5 | $ 966.8 | $ 2,667.4 | $ 2,892.4 |
Total residential revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 610.1 | 667.3 | 1,826.7 | 1,997.3 |
Total residential fixed revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 462.8 | 488.2 | 1,376.2 | 1,461.4 |
Total subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 440.1 | 458 | 1,305.5 | 1,373.4 |
Video | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 169.8 | 186.5 | 511.9 | 564.6 |
Broadband internet | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 222.2 | 214.7 | 646.1 | 636 |
Fixed-line telephony | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 48.1 | 56.8 | 147.5 | 172.8 |
Non-Subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 22.7 | 30.2 | 70.7 | 88 |
Total residential mobile revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 147.3 | 179.1 | 450.5 | 535.9 |
Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 124.5 | 147 | 380.3 | 438.9 |
Interconnect, inbound roaming, equipment sales and other | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 22.8 | 32.1 | 70.2 | 97 |
Total B2B revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 277.4 | 299.5 | 840.7 | 895.1 |
Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 219.1 | 239.4 | 657.1 | 716.7 |
Subsea network revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 58.3 | 60.1 | 183.6 | 178.4 |
Mobile Service Revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 3 | 10 | ||
Mobile Service Revenue | Revision of Prior Period, Reclassification, Adjustment | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | (27) | |||
Mobile Handset | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 7 | 10 | 23 | 30 |
B2B Mobile Handset and Other Devices | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 2 | 7 | 8 | 20 |
Interconnect, Roaming, Equipment Sales and Other | Revision of Prior Period, Reclassification, Adjustment | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 27 | |||
C&W | Interconnect, Roaming, Equipment Sales and Other | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 12 | |||
Operating Segments | C&W | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 538.9 | 595.9 | 1,642.8 | 1,772.3 |
Operating Segments | C&W | Total residential revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 280.2 | 315.5 | 857.2 | 931.1 |
Operating Segments | C&W | Total residential fixed revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 148.7 | 154.9 | 454.5 | 452.2 |
Operating Segments | C&W | Total subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 135.6 | 138.2 | 413.2 | 405.6 |
Operating Segments | C&W | Video | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 40.8 | 45.3 | 128.4 | 136 |
Operating Segments | C&W | Broadband internet | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 72.2 | 66.9 | 213.7 | 192.6 |
Operating Segments | C&W | Fixed-line telephony | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 22.6 | 26 | 71.1 | 77 |
Operating Segments | C&W | Non-Subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 13.1 | 16.7 | 41.3 | 46.6 |
Operating Segments | C&W | Total residential mobile revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 131.5 | 160.6 | 402.7 | 478.9 |
Operating Segments | C&W | Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 110.7 | 131.1 | 338.1 | 391.4 |
Operating Segments | C&W | Interconnect, inbound roaming, equipment sales and other | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 20.8 | 29.5 | 64.6 | 87.5 |
Operating Segments | C&W | Total B2B revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 258.7 | 280.4 | 785.6 | 841.2 |
Operating Segments | C&W | Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 198 | 218.8 | 594.9 | 658.1 |
Operating Segments | C&W | Subsea network revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 60.7 | 61.6 | 190.7 | 183.1 |
Operating Segments | VTR/Cabletica | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 236.9 | 268.4 | 704.7 | 819.4 |
Operating Segments | VTR/Cabletica | Total residential revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 229.6 | 260.9 | 682 | 797.1 |
Operating Segments | VTR/Cabletica | Total residential fixed revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 213.8 | 242.4 | 634.2 | 740.1 |
Operating Segments | VTR/Cabletica | Total subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 208.4 | 234.2 | 617.4 | 714.9 |
Operating Segments | VTR/Cabletica | Video | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 91.9 | 105.9 | 274.4 | 323 |
Operating Segments | VTR/Cabletica | Broadband internet | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 97.5 | 103.4 | 285.2 | 313.6 |
Operating Segments | VTR/Cabletica | Fixed-line telephony | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 19 | 24.9 | 57.8 | 78.3 |
Operating Segments | VTR/Cabletica | Non-Subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 5.4 | 8.2 | 16.8 | 25.2 |
Operating Segments | VTR/Cabletica | Total residential mobile revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 15.8 | 18.5 | 47.8 | 57 |
Operating Segments | VTR/Cabletica | Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 13.8 | 15.9 | 42.2 | 47.5 |
Operating Segments | VTR/Cabletica | Interconnect, inbound roaming, equipment sales and other | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 2 | 2.6 | 5.6 | 9.5 |
Operating Segments | VTR/Cabletica | Total B2B revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 7.3 | 7.5 | 22.7 | 22.3 |
Operating Segments | VTR/Cabletica | Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 7.3 | 7.5 | 22.7 | 22.3 |
Operating Segments | VTR/Cabletica | Subsea network revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments | Liberty Puerto Rico | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 114.4 | 104.3 | 328.1 | 306.7 |
Operating Segments | Liberty Puerto Rico | Total residential revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 100.3 | 90.9 | 287.5 | 269.1 |
Operating Segments | Liberty Puerto Rico | Total residential fixed revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 100.3 | 90.9 | 287.5 | 269.1 |
Operating Segments | Liberty Puerto Rico | Total subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 96.1 | 85.6 | 274.9 | 252.9 |
Operating Segments | Liberty Puerto Rico | Video | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 37.1 | 35.3 | 109.1 | 105.6 |
Operating Segments | Liberty Puerto Rico | Broadband internet | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 52.5 | 44.4 | 147.2 | 129.8 |
Operating Segments | Liberty Puerto Rico | Fixed-line telephony | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 6.5 | 5.9 | 18.6 | 17.5 |
Operating Segments | Liberty Puerto Rico | Non-Subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 4.2 | 5.3 | 12.6 | 16.2 |
Operating Segments | Liberty Puerto Rico | Total residential mobile revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Interconnect, inbound roaming, equipment sales and other | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Total B2B revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 14.1 | 13.4 | 40.6 | 37.6 |
Operating Segments | Liberty Puerto Rico | Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 14.1 | 13.4 | 40.6 | 37.6 |
Operating Segments | Liberty Puerto Rico | Subsea network revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | (2.7) | (1.8) | (8.2) | (6) |
Intersegment Eliminations | Total residential revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Total residential fixed revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Total subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Video | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Broadband internet | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Fixed-line telephony | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Non-Subscription revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Total residential mobile revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Interconnect, inbound roaming, equipment sales and other | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Total B2B revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | (2.7) | (1.8) | (8.2) | (6) |
Intersegment Eliminations | Service revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | (0.3) | (0.3) | (1.1) | (1.3) |
Intersegment Eliminations | Subsea network revenue | ||||
Principal Transaction Revenue [Line Items] | ||||
Revenue | $ (2.4) | $ (1.5) | $ (7.1) | $ (4.7) |
Segment Reporting - Geographic
Segment Reporting - Geographic Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 887.5 | $ 966.8 | $ 2,667.4 | $ 2,892.4 |
Panama | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 118.3 | 136.8 | 367.6 | 419.7 |
Networks & LatAm | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 84.9 | 88.3 | 265.4 | 264.5 |
Jamaica | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 93.8 | 95.3 | 277.5 | 287.6 |
The Bahamas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 44.6 | 50.1 | 134.9 | 156.2 |
Barbados | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 34.9 | 37.4 | 105.2 | 112.3 |
Curacao | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 34.8 | 37.4 | 106.9 | 81.9 |
Trinidad and Tobago | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 40.1 | 40.5 | 120.8 | 120.6 |
Chile | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 201.8 | 235.2 | 601.3 | 721.1 |
Costa Rica | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 35.1 | 33.3 | 103.4 | 98.3 |
Puerto Rico | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 114 | 104 | 327 | 305.4 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 85.2 | $ 108.5 | $ 257.4 | $ 324.8 |