Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-38385 | ||
Entity Registrant Name | GCI LIBERTY, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 92-0072737 | ||
Entity Address, Address Line One | 12300 Liberty Boulevard | ||
Entity Address, City or Town | Englewood, | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80112 | ||
City Area Code | 720 | ||
Local Phone Number | 875-5900 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 6.2 | ||
Documents Incorporated by Reference | The Registrant's definitive proxy statement for its 2020 Annual Meeting of Stockholders is hereby incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000808461 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Series A Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Series A Common Stock, par value $0.01 per share | ||
Trading Symbol | GLIBA | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 101,308,504 | ||
Series A Cumulative Redeemable Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Series A Cumulative Redeemable preferred stock, par value $0.01 per share | ||
Trading Symbol | GLIBP | ||
Security Exchange Name | NASDAQ | ||
Series B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 4,437,400 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 569,520 | $ 491,257 |
Trade and other receivables, net of allowance for doubtful accounts of $7,516 and $7,555, respectively | 114,435 | 182,600 |
Current portion of tax sharing receivable | 0 | 36,781 |
Other current assets | 43,868 | 40,100 |
Total current assets | 727,823 | 750,738 |
Investments in equity securities (note 6) | 2,605,293 | 1,533,517 |
Investment in affiliates | 167,643 | 177,030 |
Property and equipment, net | 1,090,901 | 1,184,606 |
Intangible assets not subject to amortization | ||
Goodwill (note 8) | 855,837 | 855,837 |
Intangible assets not subject to amortization | 1,202,337 | 1,367,337 |
Intangible assets subject to amortization, net (note 8) | 391,979 | 436,006 |
Tax sharing receivable | 84,534 | 65,701 |
Other assets, net | 295,693 | 71,514 |
Total assets | 11,933,445 | 8,660,822 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 92,893 | 100,334 |
Deferred revenue | 27,886 | 31,743 |
Current portion of debt, net of deferred financing costs (note 9) | 3,008 | 900,759 |
Indemnification obligation (note 5) | 202,086 | 0 |
Other current liabilities | 69,149 | 47,958 |
Total current liabilities | 395,022 | 1,080,794 |
Long-term debt, net, including $658,839 and $462,336 measured at fair value (note 9) | 3,263,210 | 1,985,275 |
Obligations under finance leases and tower obligations, excluding current portion (note 10) | 97,507 | 122,245 |
Long-term deferred revenue | 57,986 | 65,954 |
Deferred income tax liabilities | 1,527,109 | 793,696 |
Preferred stock (note 12) | 178,002 | 177,103 |
Derivative Instrument (note 5) | 71,305 | 0 |
Indemnification obligation (note 5) | 0 | 78,522 |
Other liabilities | 133,020 | 50,543 |
Total liabilities | 5,723,161 | 4,354,132 |
Equity | ||
Additional paid-in capital | 3,221,885 | 3,251,957 |
Accumulated other comprehensive earnings (loss), net of taxes | (4,084) | 168 |
Retained earnings | 2,982,626 | 1,043,933 |
Total stockholders' equity | 6,201,484 | 4,297,123 |
Non-controlling interests | 8,800 | 9,567 |
Total equity | 6,210,284 | 4,306,690 |
Commitments and contingencies | ||
Total liabilities and equity | 11,933,445 | 8,660,822 |
Series A common stock, $0.01 par value. Authorized 500,000,000 shares; issued and outstanding 101,306,716 and 102,058,816 shares at December 31, 2019 and 2018, respectively | ||
Equity | ||
Common stock | 1,013 | 1,021 |
Series B common stock, $0.01 par value. Authorized 20,000,000 shares; issued and outstanding 4,437,593 and 4,441,609 shares at December 31, 2019 and 2018, respectively | ||
Equity | ||
Common stock | 44 | 44 |
Series C common stock, $0.01 par value. Authorized 1,040,000,000 shares; no issued and outstanding shares at December 31, 2019 and 2018 | ||
Equity | ||
Common stock | 0 | 0 |
Cable certificates | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 305,000 | 305,000 |
Wireless licenses | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 35,000 | 190,000 |
Other | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 6,500 | 16,500 |
Liberty Broadband | ||
Current assets: | ||
Investment in affiliates | $ 5,367,242 | $ 3,074,373 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 7,516 | $ 7,555 |
Long-term debt, fair value | $ 658,839 | $ 462,336 |
Series A Common Stock | ||
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) | 101,306,716 | 102,058,816 |
Common stock, shares outstanding (in shares) | 101,306,716 | 102,058,816 |
Series B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 4,437,593 | 4,441,609 |
Common stock, shares outstanding (in shares) | 4,437,593 | 4,441,609 |
Series C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,040,000,000 | 1,040,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 894,733 | $ 739,762 | $ 23,817 |
Operating costs and expenses: | |||
Operating expense (exclusive of depreciation and amortization shown separately below) | 285,331 | 227,192 | 11,541 |
Selling, general and administrative, including stock-based compensation (note 14) | 399,286 | 347,676 | 64,621 |
Depreciation and amortization expense | 266,333 | 206,946 | 3,252 |
Impairment of intangibles and long-lived assets | 167,062 | 207,940 | 0 |
Insurance proceeds and restructuring, net | (5,758) | 0 | 0 |
Operating costs and expenses | 1,112,254 | 989,754 | 79,414 |
Operating income (loss) | (217,521) | (249,992) | (55,597) |
Other income (expense): | |||
Interest expense (including amortization of deferred loan fees) | (153,803) | (119,296) | 0 |
Share of earnings (losses) of affiliates, net (note 7) | (2,629) | 25,772 | 7,001 |
Realized and unrealized gains (losses) on financial instruments, net (note 5) | 3,002,400 | (681,545) | 637,164 |
Tax sharing agreement | 26,646 | (32,105) | 0 |
Other, net | 13,172 | 205 | 2,467 |
Other income (expense) | 2,885,786 | (806,969) | 646,632 |
Earnings (loss) before income taxes | 2,668,265 | (1,056,961) | 591,035 |
Income tax (expense) benefit | (730,023) | 183,307 | 133,522 |
Net earnings (loss) | 1,938,242 | (873,654) | 724,557 |
Less net earnings (loss) attributable to the non-controlling interests | (456) | (351) | (29) |
Net earnings (loss) attributable to GCI Liberty, Inc. shareholders | $ 1,938,698 | $ (873,303) | $ 724,586 |
Basic net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share (note 2) (in dollars per share) | $ 18.41 | $ (8.09) | $ 6.65 |
Diluted net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share (note 2) (in dollars per share) | $ 18.32 | $ (8.09) | $ 6.65 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ 1,938,242 | $ (873,654) | $ 724,557 |
Other comprehensive earnings (loss), net of taxes: | |||
Comprehensive earnings (loss) attributable to debt credit risk adjustments | (4,252) | 168 | 0 |
Comprehensive earnings (loss) | 1,933,990 | (873,486) | 724,557 |
Less comprehensive earnings (loss) attributable to the non-controlling interests | (456) | (351) | (29) |
Comprehensive earnings (loss) attributable to GCI Liberty, Inc. shareholders | $ 1,934,446 | $ (873,135) | $ 724,586 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ 1,938,242 | $ (873,654) | $ 724,557 |
Adjustments to reconcile net earnings (loss) to net cash from operating activities: | |||
Depreciation and amortization | 266,333 | 206,946 | 3,252 |
Stock-based compensation expense | 24,897 | 28,207 | 26,583 |
Share of (earnings) losses of affiliates, net | 2,629 | (25,772) | (7,001) |
Realized and unrealized (gains) losses on financial instruments, net | (3,002,400) | 681,545 | (637,164) |
Deferred income tax expense (benefit) | 729,970 | (182,724) | (133,522) |
Intergroup tax payments | 0 | 0 | 287,763 |
Impairment of intangibles and long-lived assets | 167,062 | 207,940 | 0 |
Other, net | 4,800 | 13,441 | 1,040 |
Change in operating assets and liabilities: | |||
Current and other assets | 3,041 | (34,698) | 31,772 |
Payables and other liabilities | (45,969) | 61,657 | 7,584 |
Net cash provided (used) by operating activities | 88,605 | 82,888 | 304,864 |
Cash flows from investing activities: | |||
Cash and restricted cash from acquisition of GCI Holdings | 0 | 147,957 | 0 |
Capital expended for property and equipment | (148,481) | (134,352) | (3,488) |
Purchases of investments | 0 | (48,581) | (76,815) |
Proceeds from derivative instrument | 105,866 | 0 | 0 |
Settlement of derivative instrument | (105,866) | 0 | 0 |
Other investing activities, net | 17,799 | 2,700 | 2,180 |
Net cash provided (used) by investing activities | (130,682) | (32,276) | (78,123) |
Cash flows from financing activities: | |||
Borrowings of debt | 877,308 | 1,588,703 | 0 |
Repayment of debt, finance leases, and tower obligations | (688,901) | ||
Repayment of debt, finance leases, and tower obligations | (254,033) | 0 | |
Contributions from (distributions to) former parent, net | 0 | (1,122,272) | (109,540) |
Indemnification payment to Qurate Retail | 0 | (132,725) | 0 |
Derivative payments | 0 | (80,001) | 0 |
Repurchases of GCI Liberty common stock | (43,910) | (111,648) | 0 |
Other financing activities, net | (18,302) | (20,752) | (31,180) |
Net cash provided (used) by financing activities | 126,195 | (132,728) | (140,720) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 84,118 | (82,116) | 86,021 |
Cash, cash equivalents and restricted cash at beginning of period | 492,032 | 574,148 | 488,127 |
Cash, cash equivalents and restricted cash at end of period | $ 576,150 | $ 492,032 | $ 574,148 |
Consolidated Statement of Equit
Consolidated Statement of Equity - USD ($) $ in Thousands | Total | Common stockSeries A Common Stock | Common stockSeries B Common Stock | Parent's investment | Additional paid-in capital | Accumulated other comprehensive earnings (loss) | Retained earnings | Non-controlling interest in equity of subsidiaries |
Balance at beginning of period at Dec. 31, 2016 | $ 3,592,682 | $ 0 | $ 0 | $ 2,398,452 | $ 0 | $ 0 | $ 1,190,568 | $ 3,662 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) | 724,557 | 724,586 | (29) | |||||
Stock-based compensation | 26,243 | 26,243 | ||||||
Withholding taxes on net share settlements of stock-based compensation | (27,793) | (27,793) | ||||||
Contributions from (distributions to) former parent, net | (146,680) | (146,680) | ||||||
Intergroup (payments) receipts | 37,140 | 37,140 | ||||||
Other | 17,887 | 18,078 | (191) | |||||
Balance at end of period at Dec. 31, 2017 | 4,224,036 | 0 | 0 | 2,305,440 | 0 | 0 | 1,914,963 | 3,633 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) | (873,654) | (873,303) | (351) | |||||
Other comprehensive earnings (loss) | 168 | 168 | ||||||
Stock-based compensation | 25,399 | 25,399 | ||||||
Series A GCI Liberty stock repurchases | (111,648) | (25) | (111,623) | |||||
Contribution of taxes in connection with HoldCo Split-Off | 1,341,657 | 1,341,657 | ||||||
Contributions from (distributions to) former parent, net | (1,122,272) | (1,122,272) | (2,019) | 2,019 | ||||
Change in Capitalization in connection with HoldCo Split-Off | 7,000 | 1,046 | 44 | (2,524,825) | 2,523,735 | 7,000 | ||
Issuance of GCI Liberty Stock in connection with the Transactions | 1,111,206 | 1,111,206 | ||||||
Issuance of Indemnification Agreement | (281,255) | (281,255) | ||||||
Distribution to non-controlling interests | (3,625) | (3,625) | ||||||
Other | (10,322) | (13,486) | 254 | 2,910 | ||||
Balance at end of period at Dec. 31, 2018 | 4,306,690 | 1,021 | 44 | 0 | 3,251,957 | 168 | 1,043,933 | 9,567 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) | 1,938,242 | 1,938,698 | (456) | |||||
Other comprehensive earnings (loss) | (4,252) | (4,252) | ||||||
Stock-based compensation | 26,019 | 26,019 | ||||||
Series A GCI Liberty stock repurchases | (43,910) | (10) | (43,900) | |||||
Issuance of common stock upon exercise of stock options | 1,880 | 2 | 1,878 | |||||
Withholding taxes on net share settlements of stock-based compensation | (11,088) | (11,088) | ||||||
Other | (3,297) | (2,981) | (5) | (311) | ||||
Balance at end of period at Dec. 31, 2019 | $ 6,210,284 | $ 1,013 | $ 44 | $ 0 | $ 3,221,885 | $ (4,084) | $ 2,982,626 | $ 8,800 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation On April 4, 2017, Liberty Interactive Corporation, now known as Qurate Retail, Inc. ("Qurate Retail"), entered into an Agreement and Plan of Reorganization (as amended, the "reorganization agreement" and the transactions contemplated thereby, the "Transactions") with General Communication, Inc. ("GCI"), an Alaska corporation and parent company of GCI Holdings, LLC ("GCI Holdings"), and Liberty Interactive LLC, a Delaware limited liability company and a direct wholly‑owned subsidiary of Qurate Retail ("LI LLC"). Pursuant to the reorganization agreement, GCI amended and restated its articles of incorporation (which resulted in GCI being renamed GCI Liberty, Inc. ("GCI Liberty")) and effected a reclassification and auto conversion of its common stock. Following these events, Qurate Retail acquired GCI Liberty on March 9, 2018 through a reorganization in which certain Qurate Retail interests, assets and liabilities attributed to its Ventures Group (following the reattribution by Qurate Retail of certain assets and liabilities from its Ventures Group to its QVC Group), were contributed to GCI Liberty in exchange for a controlling interest in GCI Liberty (the "contribution"). Qurate Retail and LI LLC contributed to GCI Liberty their entire equity interests in Liberty Broadband Corporation ("Liberty Broadband"), Charter Communications, Inc. ("Charter"), and LendingTree, Inc. ("LendingTree"), the Evite, Inc. ("Evite") operating business and other assets and liabilities (collectively, "HoldCo"), in exchange for (a) the issuance to LI LLC of a number of shares of GCI Liberty Class A common stock and a number of shares of GCI Liberty Class B common stock equal to the number of outstanding shares of Qurate Retail's Series A Liberty Ventures common stock and Qurate Retail's Series B Liberty Ventures common stock on March 9, 2018, respectively, (b) cash and (c) the assumption of certain liabilities by GCI Liberty. The contribution was treated as a reverse acquisition under the acquisition method of accounting in accordance with generally accepted accounting principles in the United States ("GAAP"). For accounting purposes, HoldCo is considered to have acquired GCI Liberty in the contribution based, among other considerations, upon the fact that in exchange for the contribution of HoldCo, Qurate Retail received a controlling interest in the combined company of GCI Liberty. Following the contribution and acquisition of GCI Liberty, Qurate Retail effected a tax‑free separation of its controlling interest in the combined company, GCI Liberty, to the holders of Qurate Retail's Liberty Ventures common stock in full redemption of all outstanding shares of such stock (the "HoldCo Split‑Off"), in which each outstanding share of Qurate Retail's Series A Liberty Ventures common stock ("LVNTA") was redeemed for one share of GCI Liberty Class A common stock and each outstanding share of Qurate Retail's Series B Liberty Ventures common stock ("LVNTB") was redeemed for one share of GCI Liberty Class B common stock. In July 2018, the Internal Revenue Service ("IRS") completed its review of the HoldCo Split-Off and informed Qurate Retail that it agreed with the nontaxable characterization of the transactions. Qurate Retail received an Issue Resolution Agreement from the IRS documenting this conclusion. On May 10, 2018, pursuant to the Agreement and Plan of Merger, dated as of March 22, 2018, GCI Liberty completed its reincorporation into Delaware by merging with its wholly owned Delaware subsidiary, which was the surviving corporation (the “Reincorporation Merger”). References to GCI Liberty or the Company prior to May 10, 2018 refer to GCI Liberty, Inc., an Alaska corporation and references to GCI Liberty after May 10, 2018 refer to GCI Liberty, Inc., a Delaware corporation. The accompanying consolidated financial statements refer to the combination of GCI Holdings, non‑controlling interests in Liberty Broadband, Charter and LendingTree, a controlling interest in Evite, and certain other assets and liabilities as "GCI Liberty", the "Company", "us", "we" and "our." Although HoldCo was reported as a combined company until the date of the HoldCo Split-Off, these financial statements present all periods as consolidated by the Company. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. The Company, through its ownership of interests in subsidiaries and other companies, is primarily engaged in providing a full range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska. The Company holds investments that are accounted for using the equity method. The Company does not control the decision making process or business management practices of these affiliates. Accordingly, the Company relies on management of these affiliates to provide it with accurate financial information prepared in accordance with GAAP that the Company uses in the application of the equity method. In addition, the Company relies on audit reports that are provided by the affiliates' independent auditors on the financial statements of such affiliates. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliates that would have a material effect on its consolidated financial statements. Split‑Off from Qurate Retail Following the HoldCo Split‑Off, Qurate Retail and GCI Liberty operate as separate, publicly traded companies, and neither have any stock ownership, beneficial or otherwise, in the other. In connection with the HoldCo Split‑Off, Qurate Retail, Liberty Media Corporation ("Liberty Media") (or its subsidiary) and GCI Liberty entered into certain agreements in order to govern certain of the ongoing relationships among the companies after the HoldCo Split‑Off and to provide for an orderly transition. These agreements include an indemnification agreement, a reorganization agreement, a services agreement, a facilities sharing agreement and a tax sharing agreement. The reorganization agreement provides for, among other things, the principal corporate transactions (including the internal restructuring) required to effect the Transactions and certain conditions to and provisions governing the relationship between GCI Liberty and Qurate Retail (for accounting purposes a related party of GCI Liberty) with respect to and resulting from the Transactions. The tax sharing agreement provides for the allocation and indemnification of tax liabilities and benefits between Qurate Retail and GCI Liberty and other agreements related to tax matters. Pursuant to the tax sharing agreement, GCI Liberty has agreed to indemnify Qurate Retail for taxes and tax-related losses resulting from the Holdco Split-Off to the extent such taxes or tax-related losses (i) result primarily from, individually or in the aggregate, the breach of certain restrictive covenants made by GCI Liberty (applicable to actions or failures to act by GCI Liberty and its subsidiaries following the completion of the Holdco Split-Off), or (ii) result from Section 355(e) of the Internal Revenue Code applying to the Holdco Split-Off as a result of the Holdco Split-Off being part of a plan (or series of related transactions) pursuant to which one or more persons acquire, directly or indirectly, a 50-percent or greater interest (measured by vote or value) in the stock of GCI Liberty (or any successor corporation). Pursuant to the services agreement, Liberty Media provides GCI Liberty with general and administrative services including legal, tax, accounting, treasury and investor relations support. See below for a description of an amendment to the services agreement entered into in December 2019. Under the facilities sharing agreement, GCI Liberty shares office space with Liberty Media and related amenities at its corporate headquarters. GCI Liberty reimburses Liberty Media for direct, out‑of‑pocket expenses incurred by Liberty Media in providing these services and for costs negotiated semi‑annually. Liberty Media is a related party of GCI Liberty for accounting purposes as a result of the services agreement. Under these agreements, amounts reimbursable to Liberty Media were approximately $9.7 million and $8.3 million for the years ended December 31, 2019 and 2018, respectively. In addition, Qurate Retail and GCI Liberty have agreed to indemnify each other with respect to certain potential losses in respect of the HoldCo Split‑Off. See note 5 for information related to the indemnification agreement. In December 2019, the Company entered into an amendment to the services agreement with Liberty Media in connection with Liberty Media’s entry into a new employment arrangement with Gregory B. Maffei, the Company’s President and Chief Executive Officer. Under the amended services agreement, components of his compensation will either be paid directly to him by each of the Company, Liberty TripAdvisor Holdings, Inc., Liberty Broadband, and Qurate Retail (collectively, the “Service Companies”) or reimbursed to Liberty Media, in each case, based on allocations among Liberty Media and the Service Companies set forth in the amended services agreement, currently set at 14% for the Company. The new agreement between Liberty Media and Mr. Maffei provides for a five year employment term which began on January 1, 2020 and ends December 31, 2024, with an aggregate annual base salary of $3 million (with no contracted increase), an aggregate one-time cash commitment bonus of $5 million , an aggregate annual target cash performance bonus of $17 million , aggregate annual equity awards of $17.5 million and aggregate equity awards granted in connection with his entry into his new agreement of $90 million |
Summary of Significant Accounti
Summary of Significant Accounting Principles | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles | Summary of Significant Accounting Principles Cash and Cash Equivalents Cash equivalents consist of investments which are readily convertible into cash and have maturities of three months or less at the time of acquisition. Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and corporate debt securities. The Company maintains some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. Accounts Receivable and Allowance for Doubtful Receivables Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful receivables is the Company's best estimate of the amount of probable credit losses in its existing accounts receivable. The Company bases its estimates on the aging of its accounts receivable balances, financial health of specific customers, regional economic data, changes in its collections process, regulatory requirements and its customers’ compliance with Universal Service Administrative Company rules. The Company reviews its allowance for doubtful receivables methodology at least annually. Depending upon the type of account receivable the Company's allowance is calculated using a pooled basis with an allowance for all accounts greater than 120 days past due, a pooled basis using a percentage of related accounts, or a specific identification method. When a specific identification method is used, potentially uncollectible accounts due to bankruptcy or other issues are reviewed individually for collectability. Account balances are charged off against the allowance when it determines that it is probable the receivable will not be recovered. The Company does not have any off-balance-sheet credit exposure related to its customers. Changes in the allowance for doubtful receivables during the years ended December 31, 2019 , 2018 and 2017 are summarized below (amounts in thousands): Additions Deductions Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Write-offs net of recoveries Balance at end of year 2019 $ 7,555 10,139 — 4,522 13,172 2018 $ — 8,741 — 1,186 7,555 2017 $ 1,100 — — 1,100 — As of December 31, 2019, $7.5 million and $5.7 million of the allowance for doubtful receivables is recorded in Trade and other receivables, net and Other assets, net, respectively, in the consolidated balance sheets. Investments All marketable equity and debt securities held by the Company are carried at fair value, generally based on quoted market prices and changes in the fair value of such securities are reported in realized and unrealized gain (losses) on financial instruments in the accompanying consolidated statements of operations. The Company elected the measurement alternative (defined as the cost of the security, adjusted for changes in fair value when there are observable prices, less impairments) for its equity securities without readily determinable fair values. For those investments in affiliates in which the Company has the ability to exercise significant influence, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the affiliate as they occur rather than as dividends or other distributions are received. Losses are limited to the extent of the Company’s investment in, advances to and commitments for the investee. In the event the Company is unable to obtain accurate financial information from an equity affiliate in a timely manner, the Company records its share of earnings or losses of such affiliate on a lag. Changes in the Company’s proportionate share of the underlying equity of an equity method investee, which result from the issuance of additional equity securities by such equity investee, are recognized in the statements of operations through the Other, net line item. To the extent there is a difference between the Company's ownership percentage in the underlying equity of an equity method investee and the Company's carrying value, such difference is accounted for as if the equity method investee were a consolidated subsidiary. The Company continually reviews its equity method investments to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value; the severity of the decline; and the financial condition, operating performance and near term prospects of the investee. In addition, the Company considers the reason for the decline in fair value, be it general market conditions, industry specific or investee specific; analysts’ ratings and estimates of 12-month share price targets for the investee; changes in stock price or valuation subsequent to the balance sheet date; and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for a recovery in fair value. If the decline in fair value is deemed to be other than temporary, the carrying value of the equity method investment is written down to fair value. In situations where the fair value of an investment is not evident due to a lack of a public market price or other factors, the Company uses its best estimates and assumptions to arrive at the estimated fair value of such investment. The Company’s assessment of the foregoing factors involves a high degree of judgment and accordingly, actual results may differ materially from the Company’s estimates and judgments. Writedowns for equity method investments are included in share of earnings (losses) of affiliates. The Company performs a qualitative assessment each reporting period for its equity securities without readily determinable fair values to identify whether an equity security could be impaired. When the Company's qualitative assessment indicates that an impairment could exist, it estimates the fair value of the investment and to the extent the fair value is less than the carrying value, it records the difference as an impairment in the consolidated statements of operations. Derivative Instruments The Company’s derivative is recorded on the balance sheet at fair value. The Company's derivative is not designated as a hedge, and changes in the fair value of the derivative are recognized in earnings. The fair value of the Company’s derivative instrument is estimated using the Black-Scholes-Merton model. The Black-Scholes-Merton model incorporates a number of variables in determining such fair values, including expected volatility of the underlying security and an appropriate discount rate. The Company obtains volatility rates from pricing services based on the expected volatility of the underlying security over the remaining term of the derivative instrument. A discount rate is obtained at the inception of the derivative instrument and updated each reporting period, based on the Company’s estimate of the discount rate at which it could currently settle the derivative instrument. The Company considered its own credit risk as well as the credit risk of its counterparties in estimating the discount rate. Management judgment is required in estimating the Black-Scholes-Merton model variables. Property and Equipment Property and equipment is stated at depreciated cost less impairments, if any. Construction costs of facilities are capitalized. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2019, that management intends to place in service during 2020. Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable. Net property and equipment consists of the following: December 31, 2019 2018 amounts in thousands Land and buildings (25 years) $ 118,973 105,525 Telephony transmission equipment and distribution facilities (5-20 years) 837,966 763,957 Cable transmission equipment and distribution facilities (5-30 years) 120,642 100,391 Support equipment and systems (3-20 years) 132,854 118,230 Customer premise equipment (2-20 years) 34,202 21,351 Fiber optic cable systems (15-25 years) 53,646 53,384 Other (5-15 years) 21,478 19,381 Property and equipment under finance leases 17,695 41,084 Construction in progress 95,386 113,819 1,432,842 1,337,122 Less accumulated depreciation 336,691 145,321 Less accumulated depreciation on property and equipment under finance leases 5,250 7,195 Property and equipment, net $ 1,090,901 1,184,606 Depreciation of property and equipment under finance leases is included in depreciation and amortization expense in the consolidated statements of operations. Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $204.2 million , $153.5 million and $0.2 million , respectively. Repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments are capitalized. Accumulated depreciation is removed and gains or losses are recognized at the time of sales or other dispositions of property and equipment. Material interest costs incurred during the construction period of non-software capital projects are capitalized. Interest is capitalized in the period commencing with the first expenditure for a qualifying capital project and ending when the capital project is substantially complete and ready for its intended use. Capitalized interest costs were $4.2 million and $3.9 million for the years ended December 31, 2019 and 2018, respectively. Impairment of Long-lived Assets The Company periodically reviews the carrying amounts of its property and equipment and its intangible assets (other than goodwill and indefinite-lived intangible assets) to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. If the carrying amount of the asset group is greater than the expected undiscounted cash flows to be generated by such asset group, including its ultimate disposition, an impairment adjustment is to be recognized. Such adjustment is measured by the amount that the carrying value of such asset groups exceeds their fair value. The Company generally measures fair value by considering sale prices for similar asset groups or by discounting estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of asset groups. Accordingly, actual results could vary significantly from such estimates. Asset groups to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred in Other liabilities in the consolidated balance sheet. When the liability is initially recorded, the Company capitalizes a cost by increasing the carrying amount of the related long-lived asset. In periods subsequent to initial measurement, changes in the liability for an asset retirement obligation resulting from revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. The majority of the Company's asset retirement obligations are the estimated cost to remove telephony transmission equipment and support equipment from leased property. The asset retirement obligation is in Other liabilities in the consolidated balance sheets. Following is a reconciliation of the beginning and ending aggregate carrying amounts of the liability for asset retirement obligations (amounts in thousands): Balance at January 1, 2018 $ — Liability acquired 38,686 Liability incurred 113 Accretion expense 1,662 Liability settled — Balance at December 31, 2018 40,461 Liability incurred 217 Accretion expense 1,596 Liability settled (74 ) Balance at December 31, 2019 $ 42,200 Certain of the Company's network facilities are on property that requires it to have a permit and the permit contains provisions requiring the Company to remove its network facilities in the event the permit is not renewed. The Company expects to continually renew its permits and therefore cannot estimate any liabilities associated with such agreements. A remote possibility exists that the Company would not be able to successfully renew a permit, which could result in it incurring significant expense in complying with restoration or removal provisions. Intangible Assets Internally used software, whether developed or purchased and installed as is, is capitalized and amortized using the straight-line method over an estimated useful life of three to five years . The Company capitalizes certain costs associated with internally developed software such as payroll costs of employees devoting time to the projects, external direct costs for materials and services, and interest costs incurred. Costs associated with internally developed software to be used internally are expensed until the point the project has reached the development stage. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. The capitalization of software requires judgment in determining when a project has reached the development stage. The Company has Software as a Service ("SaaS") arrangements which are accounted for as service agreements, and are not capitalized. Internal and other third party costs for SaaS arrangements are expensed as incurred. Data migration costs for such arrangements are expensed consistent with the same type of costs for internally developed and modified software. Additionally, configuration costs paid to the vendor are recorded as a prepaid expense and expensed over the term of the SaaS arrangement. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment upon certain triggering events. Intangible assets with estimable useful lives are being amortized over 1 to 20 year periods with a weighted-average life of 13.80 years. Goodwill, cable certificates (certificates of convenience and public necessity), wireless licenses and other intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment at least annually. Cable certificates represent certain perpetual operating rights to provide cable services. Wireless licenses represent the right to utilize certain radio frequency spectrum to provide wireless communications services. Goodwill represents the excess of cost over fair value of net assets acquired in connection with a business acquisition. The Company's annual impairment assessment of its indefinite-lived intangible assets is performed during the fourth quarter of each year. The accounting guidance allows entities the option to perform a quantitative impairment test for goodwill. The entity may resume performing the qualitative assessment in any subsequent period. In evaluating goodwill on a qualitative basis, the Company reviews the business performance of each reporting unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it was more likely than not that an indicated impairment exists for any of its reporting units. The Company considers whether there are any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges, the legal environments and how these factors might impact company specific performance in future periods. As part of the analysis the Company also considers fair value determinations for certain reporting units that have been made at various points throughout the current year and prior year for other purposes. If based on the qualitative analysis it is more likely than not that an impairment exists, the Company performs the quantitative impairment test. The quantitative goodwill impairment test compares the estimated fair value of a reporting unit to its carrying value and to the extent the carrying value is greater than the fair value, the difference is recorded as an impairment in the consolidated statements of operations. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company's valuation analyses are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. The accounting guidance also permits entities to first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. The accounting guidance also allows entities the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to the quantitative impairment test. The entity may resume performing the qualitative assessment in any subsequent period. If the qualitative assessment supports that it is more likely than not that the carrying value of the Company’s indefinite-lived intangible assets, other than goodwill, exceeds its fair value, then a quantitative assessment is performed. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. See note 8 for information on impairments recorded during the years ended December 31, 2019 and 2018. Revenue Recognition In May 2014, the Financial Accounting Standards Board (the "FASB") issued new accounting guidance on revenue from contracts with customers. The Company adopted the new guidance, which established Accounting Standards Codification Topic 606 ("ASC 606"), effective January 1, 2018, under the modified retrospective transition method. The impact of the new guidance on Evite was not material to the consolidated financial statements. GCI Holdings adopted the new guidance prior to its acquisition by HoldCo. As a result, there was no impact to the Company’s consolidated financial statements related to GCI Holdings’ adoption of the new guidance. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Substantially all of the Company's revenue is earned from services transferred over time. If at contract inception the Company determines the time period between when it transfers a promised good or service to a customer and when the customer pays for that good or service is one year or less, the Company does not adjust the promised amount of consideration for the effects of a significant financing component. Certain of the Company's customers have guaranteed levels of service. If an interruption in service occurs, the Company does not recognize revenue for any portion of the monthly service fee that will be refunded to the customer or not billed to the customer due to these service level agreements. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue-producing transaction that are collected by the Company from a customer, are excluded from revenue from contracts with customers. Nature of Services and Products Wireless Wireless revenue is generated by providing access to, and usage of the Company's network by consumer, business, and wholesale carrier customers. Additionally, the Company generates revenue by selling wireless equipment such as handsets and tablets. In general, access revenue is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Equipment sales revenue associated with the sale of wireless devices and accessories is generally recognized when the products are delivered to and control transfers to the customer. Consideration received from the customer is allocated to the service and products based on stand-alone selling prices when purchased together. New and existing wireless customers have the option to participate in Upgrade Now, a program that provides eligible customers with the ability to purchase certain wireless devices in installments over a period of up to 24 months . Participating customers have the right to trade-in the original equipment for a new device after making the equivalent of 12 monthly installment payments, provided their handset is in good working condition. Upon upgrade, the outstanding balance of the wireless equipment installment plan is exchanged for the used handset. The Company accounts for this upgrade option as a right of return with a reduction of Revenue and Operating expense for handsets expected to be upgraded based on historical data. Data Data revenue is generated by providing data network access, high-speed internet services, and product sales. Monthly service revenue for data network access and high-speed internet services is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Internet service excess usage revenue is recognized when the services are provided. The Company recognizes revenue for product sales when a customer takes possession of the equipment. The Company provides telecommunications engineering services on a time and materials basis. Revenue is recognized for these services as-invoiced. Video Video revenue is generated primarily from residential and business customers that subscribe to the Company's cable video plans. Video revenue is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Voice Voice revenue is for fixed monthly fees for voice plans as well as usage based fees for long-distance service usage. Voice plan fees are billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Usage based fees are recognized as services are provided. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations as customers purchase multiple services and products within those contracts. For such arrangements, revenue is allocated to each performance obligation based on the relative standalone selling price for each service or product within the contract. Standalone selling prices are generally determined based on the prices charged to customers. Significant Judgments Some contracts with customers include variable consideration, and may require significant judgment to determine the total transaction price, which impacts the amount and timing of revenue recognized. The Company uses historical customer data to estimate the amount of variable consideration included in the total transaction price and reassess its estimate at each reporting period. Any change in the total transaction price due to a change in the estimated variable consideration is allocated to the performance obligations on the same basis as at contract inception. Any portion of a change in transaction price that is allocated to a satisfied or partially satisfied performance obligation is recognized as revenue (or a reduction in revenue) in the period of the transaction price change. Variable consideration has been constrained to reduce the likelihood of a significant revenue reversal. Often contracts with customers include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the standalone selling price for each distinct performance obligation. Services and products are generally sold separately, and help establish standalone selling price for services and products the Company provides. Remaining Performance Obligations The Company expects to recognize revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2019 of $253.1 million in 2020, $178.5 million in 2021, $119.4 million in 2022, $39.1 million in 2023 and $61.5 million in 2024 and thereafter. The Company applies certain practical expedients as permitted under ASC 606 and does not disclose information about remaining performance obligations that have original expected durations of one year or less, information about revenue remaining from usage based performance obligations that are recognized over time as-invoiced, or variable consideration allocated to wholly unsatisfied performance obligations. Contract Balances The Company had receivables of $246.9 million and $198.8 million at December 31, 2019 and 2018, respectively, the long-term portion of which are included in Other assets, net. The Company had deferred revenue of $41.0 million and $31.7 million at December 31, 2019 and 2018, respectively, the long-term portion of which are included in Other liabilities. The receivables and deferred revenue are from contracts with customers and exclude receivables and deferred revenue that are out of the scope of ASC 606. The Company's customers generally pay for services in advance of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as revenue in the accompanying consolidated statements of operations as the services are provided. Changes in the contract liability balance for the Company during 2019 was not materially impacted by other factors. Assets Recognized from the Costs to Obtain a Contract with a Customer Management expects that incremental commission fees paid to intermediaries as a result of obtaining customer contracts are recoverable and therefore the Company capitalizes them as contract costs. Capitalized commission fees are amortized based on the transfer of goods or services to which the assets relate which typically range from two to five years , and are included in Selling, general, and administrative expenses. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in Selling, general, and administrative expenses. Revenue from contracts with customers, classified by customer type and significant service offerings follows: Years ended December 31, 2019 2018 amounts in thousands GCI Holdings Consumer Revenue Wireless $ 118,425 94,713 Data 169,332 130,631 Video 83,928 72,826 Voice 16,479 14,792 Business Revenue Wireless 76,795 63,481 Data 273,847 223,121 Video 16,170 16,786 Voice 25,740 19,820 Evite 25,071 23,920 Lease, grant, and revenue from subsidies 88,946 79,672 Total $ 894,733 739,762 Lease, Grant, and Revenue from Subsidies Universal Service Fund GCI Holdings receives support from each of the various Universal Service Fund ("USF") programs: high cost, low income, rural health care, and schools and libraries. The programs are subject to change by regulatory actions taken by the Federal Communications Commission ("FCC") or legislative actions, therefore, changes to the programs could result in a material decrease in revenue that the Company has recorded. Revenue recognized from the programs was 24% and 23% of the Company's revenue for the year ended December 31, 2019 and the period following the date of the Transactions through December 31, 2018, respectively. The Company had USF net receivables of $151.2 million and $91.3 million at December 31, 2019 and 2018 , respectively. See note 16 for more information regarding the rural health care receivables. Stock-Based Compensation As more fully described in note 14, the Company has granted to certain directors, employees and employees of its subsidiaries, restricted shares ("RSAs"), restricted stock units ("RSUs") and options to purchase shares of GCI Liberty's common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options, RSAs and RSUs) based on the grant-date fair value of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date. The Company recognizes forfeitures as they occur. Stock compensation expense was $24.9 million , $28.2 million and $26.6 million for the years ended December 31, 2019, 2018, and 2017, respectively, included in Selling, general and administrative expense in the accompanying consolidated statements of operations. Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying value amounts and income tax basis of assets and liabilities and the expected benefits of utilizing net operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using enacted tax rates in effect for each taxing jurisdiction in which the Company operates for the year in which those temporary differences are expected to be recovered or settled. Net deferred tax assets are then reduced by a valuation allowance if the Company believes it is more likely than not such net deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. Such interest expense is included in Interest expense in the accompanying consolidated statements of operations. Any accrual of penalties related to underpayment of income taxes on uncertain tax positions is included in Other income (expense) in the accompanying consolidated statements of operations. Earnings per Share (EPS) Basic earnings (loss) per common share ("EPS") is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding ("WASO") for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive. The total number of Series A and Series B common shares outstanding on March 9, 2018, 109,004,250 , is being used in the calculation of both basic and diluted earnings per share for all periods prior to the date of the HoldCo Split-Off. Series A and Series B Common Stock Year ended December 31, 2019 March 9, 2018 through December 31, 2018 number of shares in thousands Basic WASO 105,328 107,924 Potentially dilutive shares 489 — Diluted WASO 105,817 107,924 Antidilutive shares excluded from diluted WASO, including potentially dil |
Supplemental Disclosures to Con
Supplemental Disclosures to Consolidated Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures to Consolidated Statements of Cash Flows | Supplemental Disclosures to Consolidated Statements of Cash Flows Years ended December 31, 2019 2018 2017 amounts in thousands Cash paid for acquisition of GCI Holdings: Property and equipment $ — 1,211,392 — Intangible assets not subject to amortization — 1,538,544 — Intangible assets subject to amortization — 468,737 — Receivables and other assets — 254,436 — Liabilities assumed — (2,233,177 ) — Deferred tax assets (liabilities) — (276,683 ) — Fair value of equity consideration — (1,111,206 ) — Cash and restricted cash paid (received) for acquisitions, net of cash acquired $ — (147,957 ) — Cash paid for interest, net of amounts capitalized $ 155,977 132,103 6 Non-cash additions for purchases of property and equipment $ 1,571 15,916 — The following table reconciles cash and cash equivalents and restricted cash reported in the Company's consolidated balance sheets to the total amount presented in its consolidated statements of cash flows: Years ended December 31, 2019 2018 2017 amounts in thousands Cash and cash equivalents $ 569,520 491,257 573,210 Restricted cash included in other current assets 6,630 775 938 Total cash and cash equivalents and restricted cash at end of period $ 576,150 492,032 574,148 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition The Company accounted for the Transactions contemplated under the reorganization agreement using the acquisition method of accounting. Under this method, HoldCo is the acquirer of GCI Liberty. The acquisition price was $1.1 billion (level 1). The application of the acquisition method resulted in the assignment of purchase price to the GCI Liberty assets acquired and liabilities assumed based on estimates of their acquisition date fair values (primarily level 3). The assets acquired and liabilities assumed, and as discussed within this note, are those assets and liabilities of GCI Liberty prior to the completion of the Transactions. The determination of the fair values of the acquired assets and liabilities (and the determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. The acquisition price allocation for GCI Liberty is as follows (amounts in thousands): Cash and cash equivalents including restricted cash $ 147,957 Receivables 171,014 Property and equipment 1,211,392 Goodwill 966,044 Intangible assets not subject to amortization 572,500 Intangible assets subject to amortization 468,737 Other assets 83,422 Deferred revenue (92,561 ) Debt, including capital leases (1,707,002 ) Other liabilities (251,692 ) Deferred income tax liabilities (276,683 ) Preferred stock (174,922 ) Non-controlling interest (7,000 ) $ 1,111,206 Goodwill is calculated as the excess of the consideration transferred over the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce, value associated with future customers, continued innovation and non-contractual relationships. Amortizable intangible assets of $468.7 million were acquired and are comprised of a tradename with an estimated useful life of approximately 10 years, customer relationships with a weighted average useful life of approximately 16 years and right-to-use assets with a weighted average useful life of 8 years. Approximately $170.0 million of the acquired goodwill will be deductible for income tax purposes. The determination of the acquisition date fair value of the acquired assets and assumed liabilities is final. Since the date of the acquisition, included in net earnings (loss) attributable to GCI Liberty shareholders for the year ended December 31, 2018 is $307.9 million in losses related to GCI Holdings. The unaudited pro forma revenue, net earnings and basic and diluted net earnings per common share of GCI Liberty, prepared utilizing the historical financial statements of HoldCo, giving effect to acquisition accounting related adjustments made at the time of acquisition, as if the acquisition discussed above occurred on January 1, 2017, are as follows: Years ended December 31, 2018 2017 amounts in thousands, except per share amounts Revenue $ 899,210 918,726 Net earnings (loss) $ (872,306 ) 713,377 Net earnings (loss) attributable to GCI Liberty shareholders $ (871,839 ) 713,882 Basic net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ (8.08 ) 6.55 Diluted net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ (8.08 ) 6.55 The pro forma results include adjustments directly attributable to the business combination including adjustments related to the amortization of acquired tangible and intangible assets, revenue, interest expense, stock-based compensation, and the exclusion of transaction related costs. The results also include the impact of the FCC's decision to reduce rates paid to the Company under the Rural Health Care Program and the new revenue standard. The pro forma information is not representative of the Company’s future results of operations nor does it reflect what the Company’s results of operations would have been if the acquisition had occurred previously and the Company consolidated the results of GCI Liberty during the periods presented. |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | Assets and Liabilities Measured at Fair Value For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company does not have any recurring assets or liabilities measured at fair value that would be considered Level 3. The Company’s assets and liabilities measured at fair value are as follows: December 31, 2019 December 31, 2018 Description Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) amounts in thousands Cash equivalents $ 533,484 533,484 — 384,071 384,071 — Equity securities $ 2,600,008 2,600,008 — 1,529,901 1,529,901 — Investment in Liberty Broadband $ 5,367,242 5,367,242 — 3,074,373 3,074,373 — Derivative instrument liability $ 71,305 — 71,305 20,340 — 20,340 Indemnification obligation $ 202,086 — 202,086 78,522 — 78,522 Exchangeable senior debentures $ 658,839 — 658,839 462,336 — 462,336 On June 6, 2017, Qurate Retail purchased 450,000 LendingTree shares and executed a 2 ‑year variable forward with respect to 642,850 LendingTree shares. The variable forward was executed at the LendingTree closing price on June 6, 2017 of $170.70 per share and has a floor price of $128.03 per share and a cap price of $211.67 per share. The fair value of the variable forward was derived from a Black-Scholes-Merton model using observable market data as the significant inputs. On April 29, 2019, the Company terminated its variable forward and entered into a new 3 -year variable forward with respect to 642,850 LendingTree shares. The variable forward was executed at the LendingTree closing price on April 29, 2019 of $376.35 per share and has a floor price of zero and has a cap price of $254.00 per share. The fair value of the variable forward was derived from a Black-Scholes-Merton model using observable market data as the significant inputs. Pursuant to an indemnification agreement, GCI Liberty has agreed to indemnify LI LLC for certain payments made to a holder of LI LLC's 1.75% exchangeable debentures due 2046 (the " 1.75% Exchangeable Debentures"). An indemnity obligation in the amount of $281.3 million was recorded upon completion of the HoldCo Split-Off. In June 2018, Qurate Retail repurchased 417,759 bonds of the 1.75% Exchangeable Debentures for approximately $457.0 million , including accrued interest, and the Company made a payment under the indemnification agreement to Qurate Retail in the amount of $132.7 million . The remaining indemnification liability due to LI LLC pertains to the holder’s ability to exercise its exchange right according to the terms of the 1.75% Exchangeable Debentures on or before October 5, 2023. Such amount will equal the difference between the exchange value and par value of the 1.75% Exchangeable Debentures at the time the exchange occurs. The indemnification obligation recorded in the consolidated balance sheets as of December 31, 2019 represents the fair value of the estimated exchange feature included in the 1.75% Exchangeable Debentures primarily based on observable market data as significant inputs (Level 2). As of December 31, 2019, a holder of the 1.75% Exchangeable Debentures has the ability to exchange and, accordingly, such indemnification obligation is included as a current liability in the Company's consolidated balance sheets. Additionally, as of December 31, 2019, 332,241 bonds of the 1.75% Exchangeable Debentures remain outstanding. Realized and Unrealized Gains (Losses) on Financial Instruments, net Realized and unrealized gains (losses) on financial instruments, net are comprised of changes in the fair value of the following: Years ended December 31, 2019 2018 2017 amounts in thousands Equity securities $ 1,074,736 (274,393 ) 258,629 Investment in Liberty Broadband 2,292,869 (560,413 ) 473,342 Derivative instruments (50,965 ) 75,970 (94,807 ) Indemnification obligation (123,564 ) 70,007 NA Exchangeable senior debentures (190,676 ) 7,284 NA $ 3,002,400 (681,545 ) 637,164 The Company has elected to account for its exchangeable debt using the fair value option. Accordingly, a portion of the unrealized gain (loss) recognized on the Company’s exchangeable debt is presented in other comprehensive income as it relates to instrument specific credit risk and any other changes in fair value are presented in the accompanying consolidated statements of operations. |
Investments in Equity Securitie
Investments in Equity Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Equity Securities | Investments in Equity Securities Investments in equity securities, the majority of which are carried at fair value, are summarized as follows: December 31, 2019 2018 amounts in thousands Charter (a) $ 2,599,253 1,526,984 Other investments (b) 6,040 6,533 $ 2,605,293 1,533,517 (a) A portion of the Charter equity securities are considered covered shares and subject to certain contractual restrictions in accordance with the indemnification agreement. See note 5 for additional discussion of the indemnification agreement. (b) The Company has elected the measurement alternative for a portion of these securities. |
Investments in Affiliates Accou
Investments in Affiliates Accounted for Using the Equity Method | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliates Accounted for Using the Equity Method | Investments in Affiliates Accounted for Using the Equity Method Investment in LendingTree The Company has various investments accounted for using the equity method. The following table includes the Company’s carrying amount and percentage ownership of the more significant investments in affiliates at December 31, 2019 and the carrying amount at December 31, 2018: December 31, 2019 December 31, 2018 Percentage ownership Market value Carrying amount Carrying amount dollars in thousands LendingTree (a) 26.5 % $ 1,045,044 $ 166,465 174,002 Other various NA 1,178 3,028 $ 167,643 177,030 (a) Both the Company's ownership interest in LendingTree and the Company's share of LendingTree's earnings (losses) are reported on a three month lag. The market value disclosed is as of December 31, 2019. The Company’s share of LendingTree’s earnings (losses) was $(1.6) million , $21.1 million , and $7.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. Investment in Liberty Broadband On May 18, 2016, Qurate Retail completed a $2.4 billion investment in Liberty Broadband Series C non-voting shares (for accounting purposes a related party of the Company) in connection with the merger of Charter and Time Warner Cable Inc. ("TWC"). The proceeds of this investment were used by Liberty Broadband to fund, in part, its acquisition of $5.0 billion of stock in the new public parent company, Charter, of the combined enterprises. Qurate Retail, along with third party investors, all of whom invested on the same terms as Qurate Retail, purchased newly issued shares of Liberty Broadband Series C common stock at a per share price of $56.23 , which was determined based upon the fair value of Liberty Broadband’s net assets on a sum‑of‑the parts basis at the time the investment agreements were executed in May 2015. Qurate Retail, as part of the merger described above, exchanged, in a tax‑free transaction, its shares of TWC common stock for shares of Charter Class A common stock, on a one ‑for‑one basis, and Qurate Retail granted to Liberty Broadband a proxy and a right of first refusal with respect to the shares of Charter Class A common stock held by Qurate Retail following the exchange, which proxy and right of first refusal was assigned to GCI Liberty in connection with the completion of the Transactions. As of December 31, 2019, the Company has a 23.5% economic ownership interest in Liberty Broadband. Due to overlapping boards of directors and management, the Company has been deemed to have significant influence over Liberty Broadband for accounting purposes, even though the Company does not have any voting rights. The Company has elected to apply the fair value option for its investment in Liberty Broadband (Level 1) as it is believed that investors value this investment based on the trading price of Liberty Broadband. The Company recognizes changes in the fair value of its investment in Liberty Broadband in realized and unrealized gains (losses) on financial instruments, net in the consolidated statements of operations. Summarized financial information for Liberty Broadband is as follows: December 31, 2019 2018 amounts in thousands Current assets $ 52,133 84,574 Investment in Charter, accounted for using the equity method 12,194,674 12,004,376 Other assets 9,535 9,487 Total assets 12,256,342 12,098,437 Long-term debt 572,944 522,928 Deferred income tax liabilities 999,757 965,829 Other liabilities 15,695 11,062 Equity 10,667,946 10,598,618 Total liabilities and shareholders' equity $ 12,256,342 12,098,437 Years ended December 31, 2019 2018 2017 amounts in thousands Revenue $ 14,859 22,256 13,092 Operating expenses, net (44,136 ) (34,270 ) (38,570 ) Operating income (loss) (29,277 ) (12,014 ) (25,478 ) Share of earnings (losses) of affiliates 286,401 166,146 2,508,991 Gain (loss) on dilution of investment in affiliate (79,329 ) (43,575 ) (17,872 ) Realized and unrealized gains (losses) on financial instruments, net 1,170 3,659 3,098 Other income (expense), net (23,807 ) (22,339 ) (18,139 ) Income tax benefit (expense) (37,942 ) (21,924 ) (416,933 ) Net earnings (loss) $ 117,216 69,953 2,033,667 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and Indefinite Lived Assets Changes in the carrying amount of goodwill are as follows: GCI Holdings Corporate and other Total amounts in thousands Balance at January 1, 2018 $ — 25,569 25,569 Acquisitions 966,044 — 966,044 Impairment (135,776 ) — (135,776 ) Balance at December 31, 2018 $ 830,268 25,569 855,837 Impairment — — — Balance at December 31, 2019 $ 830,268 25,569 855,837 As presented in the accompanying consolidated balance sheets, cable certificates and wireless licenses are the other significant indefinite lived intangible assets. Intangible Assets Subject to Amortization December 31, 2019 December 31, 2018 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in thousands Customer relationships $ 408,267 (95,167 ) 313,100 $ 408,267 (55,417 ) 352,850 Other amortizable intangibles 139,721 (60,842 ) 78,879 122,759 (39,603 ) 83,156 Total $ 547,988 (156,009 ) 391,979 $ 531,026 (95,020 ) 436,006 Amortization expense for intangible assets with finite useful lives was $62.1 million and $53.5 million for the year ended December 31, 2019 and 2018. Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Years ending December 31, 2020 $ 53,961 2021 $ 43,720 2022 $ 37,558 2023 $ 34,178 2024 $ 30,490 Impairments During the year ended December 31, 2019, the Company recorded an impairment loss of $157.0 million related to its wireless licenses due to increased uncertainty around long-term wireless revenue. The fair value of the wireless licenses was determined using an income approach (level 3). Due to unanticipated program revenue changes and certain other market factors impacting GCI Holdings operating results, impairment losses of $135.8 million and $65.0 million were recorded during the year ended December 31, 2018 related to goodwill and cable certificates, respectively, related to the GCI Holdings reporting unit. The fair value of the cable certificates and the GCI Holdings reporting unit was determined using an income approach (Level 3). As of December 31, 2019, the GCI Holdings and Corporate and Other segments have accumulated goodwill impairment losses of $135.8 million and $55.7 million , respectively. Based on the quantitative assessments performed during the fourth quarter and the resulting impairment loss recorded, the estimated fair value of the wireless license does not significantly exceed its carrying value as of December 31, 2019. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt is summarized as follows: Outstanding principal Carrying value December 31, December 31, December 31, 2019 2019 2018 amounts in thousands Margin Loan Facility $ 1,300,000 1,300,000 900,000 Exchangeable senior debentures 477,250 658,839 462,336 Senior notes 775,000 796,138 803,287 Senior credit facility 512,666 512,666 715,124 Wells Fargo note payable 7,066 7,066 7,554 Deferred financing costs — (8,491 ) (2,267 ) Total debt $ 3,071,982 3,266,218 2,886,034 Debt classified as current, net of deferred financing costs (3,008 ) (900,759 ) Total long-term debt $ 3,263,210 1,985,275 Margin Loan On December 29, 2017, Broadband Holdco, LLC ("Broadband Holdco"), a wholly owned subsidiary of, at such time, Qurate Retail, and now the Company, entered into a margin loan agreement with various lender parties consisting of a term loan in an aggregate principal amount of $1.0 billion (the “Margin Loan”). 42,681,842 shares of Liberty Broadband Series C common stock were previously pledged by Broadband Holdco as collateral for the loan. The Margin Loan had a term of two years with an interest rate of LIBOR plus 1.85% and an undrawn commitment fee of up to 1.0% per annum. Deferred financing costs incurred on the Margin Loan are reflected in Long-term debt, net in the consolidated balance sheet. In connection with the completion of the Transactions, Broadband Holdco borrowed the full principal amount of the Margin Loan. A portion of the proceeds of the Margin Loan were used to make a distribution to Qurate Retail of $1.1 billion to be used within one year for the repurchase of QVC Group stock (now the Qurate Retail common stock) or to pay down certain debt at Qurate Retail, and for the payment of fees and other costs and expenses, in each case, pursuant to the terms of the reorganization agreement. The distributed loan proceeds constituted a portion of the cash reattributed to the QVC Group. On October 5, 2018 (the “Closing Date”), Broadband Holdco entered into Amendment No. 1 (the “Amendment”) to the Margin Loan. Pursuant to the Amendment, lenders under the Margin Loan have agreed to, among other things, provide commitments (the “Revolving Commitments”) for a new revolving credit facility in an aggregate principal amount of up to $200.0 million (the “Revolving Credit Facility” and, the loans thereunder, the “Revolving Loans”). The Revolving Credit Facility established under the Amendment is in addition to the existing term loan credit facility under the Margin Loan (the “Term Loan Facility”). On the Closing Date, Broadband Holdco drew down on the full amount of the commitments under the Revolving Credit Facility and applied all of the proceeds to prepay, on the Closing Date, a portion of the loans outstanding under the Term Loan Facility (the “Term Loan Prepayment”). After giving effect to the initial borrowing of Revolving Loans and Term Loan Prepayment on the Closing Date, $800.0 million of loans under the Term Loan Facility were outstanding and $200.0 million of Revolving Loans were outstanding. Subsequent to the Closing Date, the Company repaid $100.0 million of the Revolving Credit Facility. The Amendment also amended certain covenants in the Margin Loan to permit, among other things, Broadband Holdco to enter into a subordinated revolving note with GCI Liberty and certain additional investments. On November 25, 2019 (the "Amendment No. 2 Closing Date"), Broadband Holdco entered into Amendment No. 2 to the Margin Loan Agreement ("Amendment No. 2" and, together with the Margin Loan and the Amendment, the "Margin Loan Agreement"). Pursuant to Amendment No. 2, lenders under the Margin Loan have agreed to, among other things, extend the maturity date of the Margin Loan to December 29, 2021 and provide commitments for a new delayed draw term loan facility in an aggregate principal amount of $300.0 million ("Delayed Draw Term Loan Facility" and, together with the Revolving Credit Facility and the Term Loan Facility, the "Margin Loan Facility" and the loans thereunder, the "Loans"). The Delayed Draw Term Loan Facility is in addition to the existing Term Loan Facility and Revolving Credit Facility. After giving effect to Amendment No. 2 and the Interest True Up (as defined below), on the Amendment No. 2 Closing Date, $800.0 million of Loans under the Term Loan Facility were outstanding and $100.0 million of Loans under the Revolving Credit Facility were outstanding. No borrowings under the Delayed Draw Term Loan Facility were made at the closing of Amendment No. 2. On the Amendment No. 2 Closing Date, Broadband Holdco paid (i) all accrued and unpaid interest on the Loans outstanding under the Term Loan Facility and Revolving Credit Facility and (ii) all accrued and unpaid fees with respect to the Margin Loan Agreement (the “Interest True Up”). 42,681,842 shares of Liberty Broadband Series C common stock with a value of $5.4 billion were pledged by Broadband Holdco as collateral for the loan as of December 31, 2019. Broadband Holdco is permitted to use the proceeds of the Loans for any purpose not prohibited under the Margin Loan Agreement, including, without limitation, (i) to make dividends and distributions, (ii) for the purchase of margin stock, (iii) to make investments not prohibited under the Margin Loan Agreement, and/or (iv) otherwise for general corporate purposes, including, without limitation, for payment of interest and fees and other costs and expenses. The Loans will mature on December 29, 2021 (the “maturity date”) and accrue interest at a rate equal to the 3-month LIBOR rate plus a per annum spread of 1.85% , subject to certain conditions and exceptions. Undrawn Revolving Commitments shall be available to Broadband Holdco from the Amendment No. 2 Closing Date to but excluding the earlier of (i) the date that is one month prior to the maturity date and (ii) the date of the termination of such Revolving Commitments pursuant to the terms of the Margin Loan Agreement. The obligations under the Margin Loan Facility, are secured by first priority liens on the shares of Liberty Broadband owned by Broadband Holdco and certain other cash collateral provided by Broadband Holdco. In addition, the Revolving Credit Facility, the Term Loan Facility and the Delayed Draw Term Loan Facility are subject to the same affirmative and negative covenants and events of default. Subsequent to the Amendment No. 2 Closing Date, on December 27, 2019, Broadband Holdco borrowed $100.0 million under the Revolving Credit Facility and $300.0 million under the Delayed Draw Term Loan Facility. As of December 31, 2019, $1,300.0 million in borrowings were outstanding under the Margin Loan Facility. Exchangeable Senior Debentures On June 18, 2018, GCI Liberty issued 1.75% exchangeable senior debentures due 2046 ("Exchangeable Senior Debentures"). Upon an exchange of debentures, GCI Liberty, at its option, may deliver Charter Class A common stock, cash or a combination of Charter Class A common stock and cash. Initially, 2.6989 shares of Charter Class A common stock are attributable to each $1,000 principal amount of debentures, representing an initial exchange price of approximately $370.52 for each share of Charter Class A common stock. A total of 1,288,051 shares of Charter Class A common stock are attributable to the debentures. Interest is payable quarterly on March 31, June 30, September 30 and December 31 of each year. The debentures may be redeemed by GCI Liberty, in whole or in part, on or after October 5, 2023. Holders of debentures also have the right to require GCI Liberty to purchase their debentures on October 5, 2023. The redemption and purchase price will generally equal 100% of the adjusted principal amount of the debentures plus accrued and unpaid interest. Senior Notes On June 6, 2019, GCI, LLC, a wholly-owned subsidiary of the Company, issued $325.0 million of 6.625% Senior Notes due 2024 at par ("2024 Notes"). The 2024 Notes are unsecured and the net proceeds were used to fund the redemption of $325.0 million aggregate outstanding principal amount of GCI, LLC's 6.75% Senior Notes due 2021. Interest on the 2024 Notes and GCI, LLC's 6.875% Senior Notes due 2025 (collectively, the “Senior Notes”), is payable semi-annually in arrears. The Senior Notes are redeemable at the Company's option, in whole or in part, at a redemption price defined in the respective indentures, and accrued and unpaid interest (if any) to the date of redemption. The Senior Notes are stated net of an aggregate unamortized premium of $21.1 million at December 31, 2019 . Such premium is being amortized to interest expense in the accompanying consolidated statements of operations. Senior Credit Facility On December 27, 2018, GCI, LLC, amended and restated the Fifth Amended and Restated Credit Agreement dated as of March 9, 2018 and refinanced the revolving credit facility and term loan A with a new revolving credit facility, leaving the existing Term Loan B in place (the "Senior Credit Facility"). The Senior Credit Facility provides a $240.7 million term loan B ("Term Loan B") and a $550.0 million revolving credit facility. GCI, LLC's Senior Credit Facility Total Leverage Ratio (as defined in the Senior Credit Facility) may not exceed 6.50 to one and the Secured Leverage Ratio (as defined in the Senior Credit Facility) may not exceed 4.00 to one. The revolving credit facility borrowings that are LIBOR loans bear interest at a per annum rate equal to the applicable LIBOR plus a margin that varies between 1.50% and 2.75% depending on the total leverage ratio. The full principal revolving credit facility included in the Senior Credit Facility will mature on December 27, 2023 or August 6, 2021 if the Term Loan B is not refinanced or repaid in full prior to such date. The interest rate for the Term Loan B is LIBOR plus 2.25% . The Term Loan B requires principal payments of 0.25% of the original principal amount on the last day of each calendar quarter with the full amount maturing on February 2, 2022. The terms of the Senior Credit Facility include customary representations and warranties, customary affirmative and negative covenants and customary events of default. At any time after the occurrence of an event of default under the Senior Credit Facility, the lenders may, among other options, declare any amounts outstanding under the Senior Credit Facility immediately due and payable and terminate any commitment to make further loans under the Senior Credit Facility. The obligations under the Senior Credit Facility are secured by a security interest on substantially all of the assets of GCI Holdings and the subsidiary guarantors, as defined in the Senior Credit Facility, and on the stock of GCI Holdings. As of December 31, 2019, there is $237.7 million outstanding under the Term Loan B, $275.0 million outstanding under the revolving portion of the Senior Credit Facility and $8.1 million in letters of credit under the Senior Credit Facility, which leaves $266.9 million available for borrowing. Wells Fargo Note Payable GCI Holdings issued a note to Wells Fargo that matures on July 15, 2029 and is payable in monthly installments of principal and interest (the "Wells Fargo Note Payable"). The interest rate is variable at one month LIBOR plus 2.25% . The note is subject to similar affirmative and negative covenants as the Senior Credit Facility. The obligations under the note are secured by a security interest and lien on the building purchased with the note. Debt Covenants GCI, LLC is subject to covenants and restrictions under its Senior Notes and Senior Credit Facility. The Company and GCI, LLC are in compliance with all debt maintenance covenants as of December 31, 2019. Five Year Maturities The annual principal maturities of debt, based on stated maturity dates, for each of the next five years is as follows (amounts in thousands): 2020 $ 3,008 2021 1,578,031 2022 233,344 2023 477,871 2024 325,646 2025 and thereafter 454,082 Total debt $ 3,071,982 Fair Value of Debt The fair value of the Senior Notes was $824.8 million at December 31, 2019. Due to the variable rate nature of the Margin Loan, Senior Credit Facility and Wells Fargo Note Payable, the Company believes that the carrying amount approximates fair value at December 31, 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases In February 2016 and subsequently, the FASB issued new guidance which revises the accounting for leases (“ASC 842”). Under the new guidance, entities that lease assets are required to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases regardless of whether they are classified as finance or operating leases. In addition, new disclosures are required to meet the objective of enabling users of the financial statements to better understand the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted this guidance on January 1, 2019 and elected the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption. Results for reporting periods beginning after January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for those periods. The Company elected certain of the available transition practical expedients, including those that permit it to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. The Company did not elect the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. The most significant impact of the new guidance was the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases. In addition, the Company elected the practical expedient to account for the lease and non-lease components as a single lease component and will not recognize ROU assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date. The Company recognized $107.3 million of ROU assets, $28.0 million of short-term operating lease liabilities and $79.3 million of long-term operating lease liabilities in the accompanying consolidated balance sheet upon the adoption of the new standard. In 2016 and 2017, GCI Holdings sold certain tower sites and entered into a master lease agreement in which it leased back space on those tower sites. At the time, GCI Holdings determined that it was precluded from applying sales-leaseback accounting. Upon adoption of ASC 842, GCI Holdings considered whether this transaction would have resulted in a completed sale-leaseback transaction and concluded that the transaction did not meet the criteria and should continue to be accounted for in the same manner as previously determined. The Company has entered into finance lease agreements with satellite providers for transponder capacity to transmit voice and data traffic in rural Alaska. The Company is also party to finance lease agreements for an office building and certain retail store locations. The Company also leases office space, land for towers and communication facilities, satellite transponders, fiber capacity, and equipment. These leases are classified as operating leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate at the commencement date of the lease. During the twelve months ended December 31, 2019 , the Company amended its lease agreement with a satellite provider that resulted in a $22.5 million reduction to the finance lease liability and a $16.0 million reduction to fixed assets, resulting in a gain of $6.5 million that is included in Other, net on the consolidated statements of operations. The Company has leases with remaining lease terms that range from less than one year up to 31 years. Certain of the Company's leases may include an option to extend the term of the lease with such options to extend ranging from 3 years up to 39 years. The Company also has the option to terminate certain of its leases early with such options to terminate ranging from as early as 30 days up to 18 years from December 31, 2019. The components of lease cost during the year ended December 31, 2019 were as follows: Year ended December 31, 2019 Operating lease cost (1) $ 48,481 Finance lease cost Depreciation of leased assets $ 4,997 Interest on lease liabilities 1,196 Total finance lease cost $ 6,193 (1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the financial statements. For the year ended December 31, 2018, the Company recorded depreciation expense on finance leases (previously referred to as capital leases) and operating lease expense of $7.2 million and $46.7 million , respectively. The remaining weighted-average lease term and the weighted average discount rate were as follows: Year ended December 31, 2019 Weighted-average remaining lease term (years): Finance leases 3.5 Operating leases 4.9 Weighted-average discount rate: Finance leases 5.1 % Operating leases 5.0 % Supplemental balance sheet information related to leases was as follows: December 31, 2019 amounts in thousands Operating leases: Operating lease ROU assets, net (1) $ 123,831 Current operating lease liabilities (2) $ 39,756 Operating lease liabilities (3) 80,811 Total operating lease liabilities $ 120,567 Finance Leases: Property and equipment, at cost $ 17,695 Accumulated depreciation (5,250 ) Property and equipment, net $ 12,445 Current obligations under finance leases (4) $ 4,640 Obligations under finance leases 7,281 Total finance lease liabilities $ 11,921 (1) Operating lease ROU assets, net are included within the Other assets, net line item in the accompanying consolidated balance sheets. (2) Current operating lease liabilities are included within the Other current liabilities line item in the accompanying consolidated balance sheets. (3) Operating lease liabilities are included within the Other liabilities line item in the accompanying consolidated balance sheets. (4) Current obligations under finance leases are included within the Other current liabilities line item in the accompanying consolidated balance sheets. Supplemental cash flow information related to leases was as follows: Year ended December 31, 2019 amounts in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 46,192 Operating cash flows from finance leases $ 1,141 Financing cash flows from finance leases $ 7,717 ROU assets obtained in exchange for lease obligations Operating leases $ 39,515 Finance leases $ — Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at December 31, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligations amounts in thousands 2020 $ 5,159 45,013 7,797 2021 3,981 35,862 7,953 2022 1,973 22,120 8,112 2023 678 14,855 8,274 2024 688 5,574 8,439 Thereafter 1,046 19,192 134,395 Total lease payments 13,525 142,616 174,970 Less: imputed interest (1,604 ) (22,049 ) (83,581 ) Total lease liabilities $ 11,921 120,567 91,389 |
Leases | Leases In February 2016 and subsequently, the FASB issued new guidance which revises the accounting for leases (“ASC 842”). Under the new guidance, entities that lease assets are required to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases regardless of whether they are classified as finance or operating leases. In addition, new disclosures are required to meet the objective of enabling users of the financial statements to better understand the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted this guidance on January 1, 2019 and elected the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption. Results for reporting periods beginning after January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for those periods. The Company elected certain of the available transition practical expedients, including those that permit it to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. The Company did not elect the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. The most significant impact of the new guidance was the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases. In addition, the Company elected the practical expedient to account for the lease and non-lease components as a single lease component and will not recognize ROU assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date. The Company recognized $107.3 million of ROU assets, $28.0 million of short-term operating lease liabilities and $79.3 million of long-term operating lease liabilities in the accompanying consolidated balance sheet upon the adoption of the new standard. In 2016 and 2017, GCI Holdings sold certain tower sites and entered into a master lease agreement in which it leased back space on those tower sites. At the time, GCI Holdings determined that it was precluded from applying sales-leaseback accounting. Upon adoption of ASC 842, GCI Holdings considered whether this transaction would have resulted in a completed sale-leaseback transaction and concluded that the transaction did not meet the criteria and should continue to be accounted for in the same manner as previously determined. The Company has entered into finance lease agreements with satellite providers for transponder capacity to transmit voice and data traffic in rural Alaska. The Company is also party to finance lease agreements for an office building and certain retail store locations. The Company also leases office space, land for towers and communication facilities, satellite transponders, fiber capacity, and equipment. These leases are classified as operating leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate at the commencement date of the lease. During the twelve months ended December 31, 2019 , the Company amended its lease agreement with a satellite provider that resulted in a $22.5 million reduction to the finance lease liability and a $16.0 million reduction to fixed assets, resulting in a gain of $6.5 million that is included in Other, net on the consolidated statements of operations. The Company has leases with remaining lease terms that range from less than one year up to 31 years. Certain of the Company's leases may include an option to extend the term of the lease with such options to extend ranging from 3 years up to 39 years. The Company also has the option to terminate certain of its leases early with such options to terminate ranging from as early as 30 days up to 18 years from December 31, 2019. The components of lease cost during the year ended December 31, 2019 were as follows: Year ended December 31, 2019 Operating lease cost (1) $ 48,481 Finance lease cost Depreciation of leased assets $ 4,997 Interest on lease liabilities 1,196 Total finance lease cost $ 6,193 (1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the financial statements. For the year ended December 31, 2018, the Company recorded depreciation expense on finance leases (previously referred to as capital leases) and operating lease expense of $7.2 million and $46.7 million , respectively. The remaining weighted-average lease term and the weighted average discount rate were as follows: Year ended December 31, 2019 Weighted-average remaining lease term (years): Finance leases 3.5 Operating leases 4.9 Weighted-average discount rate: Finance leases 5.1 % Operating leases 5.0 % Supplemental balance sheet information related to leases was as follows: December 31, 2019 amounts in thousands Operating leases: Operating lease ROU assets, net (1) $ 123,831 Current operating lease liabilities (2) $ 39,756 Operating lease liabilities (3) 80,811 Total operating lease liabilities $ 120,567 Finance Leases: Property and equipment, at cost $ 17,695 Accumulated depreciation (5,250 ) Property and equipment, net $ 12,445 Current obligations under finance leases (4) $ 4,640 Obligations under finance leases 7,281 Total finance lease liabilities $ 11,921 (1) Operating lease ROU assets, net are included within the Other assets, net line item in the accompanying consolidated balance sheets. (2) Current operating lease liabilities are included within the Other current liabilities line item in the accompanying consolidated balance sheets. (3) Operating lease liabilities are included within the Other liabilities line item in the accompanying consolidated balance sheets. (4) Current obligations under finance leases are included within the Other current liabilities line item in the accompanying consolidated balance sheets. Supplemental cash flow information related to leases was as follows: Year ended December 31, 2019 amounts in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 46,192 Operating cash flows from finance leases $ 1,141 Financing cash flows from finance leases $ 7,717 ROU assets obtained in exchange for lease obligations Operating leases $ 39,515 Finance leases $ — Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at December 31, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligations amounts in thousands 2020 $ 5,159 45,013 7,797 2021 3,981 35,862 7,953 2022 1,973 22,120 8,112 2023 678 14,855 8,274 2024 688 5,574 8,439 Thereafter 1,046 19,192 134,395 Total lease payments 13,525 142,616 174,970 Less: imputed interest (1,604 ) (22,049 ) (83,581 ) Total lease liabilities $ 11,921 120,567 91,389 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code, the most significant of which was a reduction to the U.S. federal corporate tax rate from 35 percent to 21 percent. The Company reflected the income tax effects of those aspects of the Tax Act for which the accounting was known as of December 31, 2017 and made immaterial revisions to such amounts during the allowed one year measurement period. As of December 31, 2018, the Company had completed its analysis of the tax effects of the Tax Act. Holdco was included in the federal combined income tax return of Qurate Retail prior to the HoldCo Split-Off. For periods prior to the HoldCo Split-Off, the tax provision included in these financial statements was prepared on a stand-alone basis, as if the Company was not part of Qurate Retail. Certain HoldCo income tax related balances as of the date of the HoldCo Split-Off were recorded as equity contributions from Qurate Retail in the net amount of $1.3 billion as shown in the consolidated statement of equity. Subsequent to the HoldCo Split-Off, GCI Liberty's consolidated tax return will include HoldCo. Although the acquisition of GCI Liberty was accounted for as a reverse acquisition under GAAP, the consolidated income tax return of GCI Liberty for 2018 included a full year of GCI Liberty’s financials results (including activity prior to the Transactions) and the partial year of financial results of HoldCo for the period subsequent to the HoldCo Split-Off. Income tax benefit (expense) consists of: Years ended December 31, 2019 2018 2017 amounts in thousands Current: Federal $ (30 ) 607 — State and local (23 ) (24 ) — (53 ) 583 — Deferred: Federal (542,259 ) 190,931 160,150 State and local (187,711 ) (8,207 ) (26,628 ) (729,970 ) 182,724 133,522 Income tax benefit (expense) $ (730,023 ) 183,307 133,522 Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017 as a result of the following: Years ended December 31, 2019 2018 2017 amounts in thousands Computed expected tax benefit (expense) $ (560,336 ) 221,962 (206,862 ) State and local income taxes, net of federal income taxes (158,349 ) 74,105 (17,001 ) Nontaxable equity contribution (20,353 ) 7,960 — Executive compensation (2,437 ) (7,114 ) — Change in state tax rate due to acquisition — (117,496 ) — Change in state tax rate 10,078 37,073 — Change in tax rate due to Tax Act — — 347,979 Deductible stock compensation 3,394 (131 ) 14,116 Goodwill impairment — (28,513 ) — Change in valuation allowance affecting tax expense (40 ) (189 ) (384 ) Other, net (1,980 ) (4,350 ) (4,326 ) Income tax benefit (expense) $ (730,023 ) 183,307 133,522 For the year ended December 31, 2019, income tax expense in excess of expected federal tax expense is primarily due to state income tax expense. For the year ended December 31, 2018, the income tax benefit was lower than the U.S. statutory tax rate of 21% primarily due to a change in the effective state tax rate used to measure deferred taxes due to the acquisition as discussed in notes 1 and 4 and a goodwill impairment that is not deductible for tax purposes, partially offset by a change in the state effective tax rate used to measure deferred taxes resulting from a state law change. For the year ended December 31, 2017, the most significant reconciling item is a net tax benefit for the effect of the change in the U.S. federal corporate tax rate from 35% to 21% on deferred taxes. The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: December 31, 2019 2018 amounts in thousands Deferred tax assets: Loss and capital carryforwards $ 179,473 153,931 Deferred revenue 20,026 23,716 Accrued stock compensation 3,889 3,598 Debt 44,843 6,209 Operating lease liability 33,656 — Other accrued liabilities 9,578 20,108 Other future deductible amounts 35,489 19,189 Deferred tax assets 326,954 226,751 Valuation allowance (1,366 ) (1,326 ) Net deferred tax assets 325,588 225,425 Deferred tax liabilities Investments 1,439,140 573,016 Fixed assets 209,094 232,899 Intangible assets 169,834 213,206 Operating lease ROU assets 34,629 — Deferred tax liabilities 1,852,697 1,019,121 Net deferred tax liabilities $ 1,527,109 793,696 During the year ended December 31, 2019, there was an increase in the valuation allowance of $40,000 all of which affected tax expense. At December 31, 2019, the Company had federal and state net operating losses and interest expense carryforwards for income tax purposes aggregating approximately $179.5 million (on a tax effected basis). Of the $179.5 million , $63.7 million are carryforwards with no expiration. The future use of the remaining carryforwards of $115.8 million are subject to limitation and expire at certain future dates. Based on current projections, $1.4 million of these carryforwards may expire unused and accordingly are subject to a valuation allowance. The carryforwards that are expected to be utilized will begin to expire in 2020. As of December 31, 2019, the Company had not recorded tax reserves related to unrecognized tax benefits for uncertain tax positions. As of December 31, 2019, none of GCI’s tax years prior to the HoldCo Split-Off are under audit. Qurate Retail’s tax years prior to 2016 are closed for federal income tax purposes and the IRS has completed its examination of Qurate Retail’s 2016 and 2017 tax years. Qurate Retail’s 2018 tax year is being examined currently as part of the IRS's Compliance Assurance Process program. Various states are currently examining Qurate Retail’s prior years’ state income tax returns. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock GCI Liberty Series A Cumulative Redeemable Preferred Stock (the "Preferred Stock") was issued as a result of the auto conversion that occurred on March 8, 2018. The Company is required to redeem all outstanding shares of Preferred Stock out of funds legally available, at the liquidation price plus all unpaid dividends (whether or not declared) accrued from the most recent dividend payment date through the redemption date, on the first business day following the twenty-first anniversary of the March 8, 2018 auto conversion. There were 7,500,000 shares of Preferred Stock authorized and 7,202,917 shares issued and outstanding at December 31, 2019 . An additional 42,500,000 shares of preferred stock of the Company are authorized and are undesignated as to series. The Preferred Stock is accounted for as a liability on the Company's consolidated balance sheets because it is mandatorily redeemable. As a result, all dividends paid on the Preferred Stock are recorded as interest expense in the Company's consolidated statements of operations. The liquidation price is measured per share and shall mean the sum of (i) $25 , plus (ii) an amount equal to all unpaid dividends (whether or not declared) accrued with respect to such share have been added to and then remain part of the liquidation price as of such date. The holders of shares of Preferred Stock are entitled to receive, when and as declared by the GCI Liberty Board of Directors, out of legally available funds, preferential dividends that accrue and cumulate as provided in the restated GCI Liberty certificate of incorporation. Dividends on each share of Preferred Stock accrued on a daily basis at an initial rate of 5.00% per annum of the liquidation price, and increased to 7.00% per annum of the liquidation price effective July 16, 2018 as a result of the Reincorporation Merger in the State of Delaware in May 2018. Accrued dividends are payable quarterly on each dividend payment date, which is January 15, April 15, July 15, and October 15 of each year, commencing on the first such date following the auto conversion, which occurred immediately after the market closed on March 8, 2018. If GCI Liberty fails to pay cash dividends on the Preferred Stock in full for any four consecutive or non-consecutive dividend periods then the dividend rate shall increase by 2.00% per annum of the liquidation price until cured. The Company paid a cash dividend of approximately $0.44 per share of Preferred Stock on January 15, 2019, a cash dividend of approximately $0.44 per share of Preferred Stock on April 15, 2019, a cash dividend of approximately $0.44 per share of Preferred Stock on July 15, 2019, and a cash dividend of approximately $0.44 per share of Preferred Stock on October 15, 2019. On December 6, 2019, the Company declared a quarterly cash dividend of approximately $0.44 per share of Preferred Stock which was paid on January 15, 2020 to shareholders of record of the Preferred Stock at the close of business on December 31, 2019. Common Stock The Company's Series A common stock and Series B common stock are identical in all respects, except that each share of Series A common stock has one vote per share and each share of Series B common stock has ten votes per share. Each share of Series B common stock outstanding is convertible, at the option of the holder, into one share of Series A common stock. Purchases of Common Stock During the years ended December 31, 2019 and 2018, the Company repurchased 1,006,243 shares of Series A common stock for aggregate cash consideration of $43.9 million and 2,397,710 shares of Series A common stock for aggregate cash consideration of $111.6 million , respectively. All of the foregoing shares were repurchased pursuant to a previously announced share repurchase program and have been retired and returned to the status of authorized and available for issuance. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities New Markets Tax Credit Entities GCI entered into several arrangements under the New Markets Tax Credit ("NMTC") program with US Bancorp to help fund various projects that extended terrestrial broadband service for the first time to rural Northwestern Alaska communities via a high capacity hybrid fiber optic and microwave network. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments. Each of the transactions has an investment fund, which is a special purpose entity created to effect the financing arrangement. In each of the transactions, the Company loaned money to the investment fund and US Bancorp invested money in the investment fund. The investment fund would then contribute the funds from the Company's loan and US Bancorp's investment to a CDE. The CDE, in turn, would loan the funds to the Company's wholly owned subsidiary, Unicom, Inc. ("Unicom") as partial financing for the projects. US Bancorp is entitled to substantially all of the benefits derived from the NMTCs. All of the loan proceeds to Unicom, net of syndication and arrangement fees, were restricted for use on the projects. Restricted cash of $6.6 million and $0.8 million was held by Unicom at December 31, 2019 and 2018, respectively, and is included in the Company's consolidated balance sheets. The Company completed construction of the projects partially funded by these transactions. These transactions include put/call provisions whereby the Company may be obligated or entitled to repurchase US Bancorp’s interest in each investment fund for a nominal amount. The Company believes that US Bancorp will exercise the put options at the end of the compliance periods for each of the transactions. The NMTCs are subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code of 1986, as amended. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangements. Non-compliance with applicable requirements could result in projected tax benefits not being realized by US Bancorp. As of December 31, 2019, the Company has agreed to indemnify US Bancorp for any loss or recapture of NMTCs totaling $12.5 million until such time as its obligation to deliver tax benefits is relieved. There have been no credit recaptures as of December 31, 2019. The value attributed to the put/calls is nominal. The Company has determined that each of the investment funds are variable interest entities ("VIEs"). The consolidated financial statements of each of the investment funds include the CDEs. The ongoing activities of the VIEs – collecting and remitting interest and fees and NMTC compliance – were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the VIEs. Management considered the contractual arrangements that obligate the Company to deliver tax benefits and provide various other guarantees to US Bancorp; US Bancorp’s lack of a material interest in the underlying economics of the project; and the fact that the Company is obligated to absorb losses of the VIEs. The Company concluded that it is the primary beneficiary of each and consolidated the VIEs in accordance with the accounting standard for consolidation. In September 2018, October 2019 and December 2019, US Bancorp exercised its put option for the NMTC transactions that were entered into in August 2011, October 2012 and December 2012, respectively. The exercise of the put options resulted in the Company obtaining ownership of the investment fund. Upon obtaining ownership of the investment fund, the Company settled the loans and obtained legal ownership of the VIEs associated with those respective NMTC transactions. The assets and liabilities of the consolidated VIEs were $32.0 million and $21.8 million , respectively, as of December 31, 2019 and $89.0 million and $63.0 million , respectively, as of December 31, 2018. The assets of the VIEs serve as the sole source of repayment for the debt issued by these entities. US Bancorp does not have recourse to the Company or its other assets, with the exception of customary representations and indemnities it has provided. The Company is not required and does not currently intend to provide additional financial support to these VIEs. While these subsidiaries are included in its consolidated financial statements, these subsidiaries are separate legal entities and their assets are legally owned by them and not available to the Company's creditors. The following table summarizes the key terms of each of the NMTC transactions: Transaction Date Loan to Investment Fund Interest Rate on Loan to Investment Fund Maturity Date US Bancorp Investment Loan to Unicom Interest Rate on Loan(s) to Unicom Expected Put Option Exercise March 21, 2017 $6.7 million 1% March 21, 2040 $3.3 million $9.8 million 0.7% March 2024 December 22, 2017 $10.4 million 1% December 22, 2047 $5.1 million $14.7 million 0.7% to 1.2% December 2024 October 2, 2019 $4.8 million 1% October 2, 2049 $2.2 million $6.7 million 1.8% October 2026 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation GCI Liberty - Incentive Plan Pursuant to the GCI Liberty, Inc. 2018 Omnibus Incentive Plan, the Company may grant Awards to be made in respect of a maximum of 8.0 million shares of GCI Liberty common stock. Awards generally vest over 1 - 5 years and have a term of 7 - 10 years . GCI Liberty issues new shares upon exercise of equity awards. GCI Liberty - Grants of Stock Options During the year ended December 31, 2019, the Company granted to its non-employee directors and its employees 57,000 options to purchase shares of GCI Liberty Series A common stock. Such options had a weighted average grant-date fair value ("GDFV") of $18.71 per share and cliff vest in one year for non-employee directors and between three and five years for employees. During the year ended December 31, 2018, the Company granted to its non-employee directors 10,000 options to purchase shares of GCI Liberty Series A common stock. Such options had a weighted average GDFV of $14.09 per share and generally cliff vest in one year . During the year ended December 31, 2017, the Company granted to its non-employee directors and its employees 188,000 options to purchase shares of LVNTA. Such options had a weighted average GDFV of $16.52 per share and vest in one year for non-employee directors and between three and five years for employees. Also during the year ended December 31, 2019 the Company granted 22,000 options to purchase shares of GCI Liberty Series B common stock to the Company's CEO. Such options had a GDFV of $18.27 per share and cliff vested immediately upon grant. During the years ended December 31, 2018 and 2017, and in connection with the Company's CEO's employment agreement, the Company granted 143,000 and 269,000 options, respectively, to purchase shares of LVNTB to the Company's CEO. Such options had a GDFV of $16.55 and $15.41 per share, respectively, and cliff vested at the end of their respective grant year. In connection with the Option Exchange (see below), the Company granted 946,000 and 1.1 million options to purchase shares of LVNTA and LVNTB, respectively. Such options have an incremental weighted average GDFV of $8.53 and $6.94 , respectively. In addition to the stock option grants to the Company’s CEO, the Company granted 51,000 performance-based restricted stock units ("RSUs") of GCI Liberty Series B common stock in 2019. The RSUs had a GDFV of $53.78 per share at the time they were granted and cliff vest one year from the month of grant, subject to the satisfaction of certain performance objectives and based on an amount determined by the compensation committee. Performance objectives, which are subjective, are considered in determing the timing and amount of the compensation expense. The probability of satisfying the performance objectives is assessed at the end of each reporting period. During the fourth quarter of 2017, prior to the HoldCo Split-Off, Qurate Retail entered into a series of transactions with certain of its officers, associated with certain outstanding stock options, in order to recognize tax deductions in 2017 versus future years (the "Option Exchange"). On December 26, 2017 (the "Grant Date"), pursuant to the approval of the Compensation Committee of its Board of Directors, Qurate Retail effected the acceleration of (i) each unvested in-the-money option to acquire shares of LVNTA and (ii) each unvested in-the-money option to acquire shares of LVNTB, in each case, held by certain of its officers (collectively, the "Eligible Optionholders"). Following this acceleration, also on the Grant Date, each Eligible Optionholder exercised, on a net settled basis, all of his outstanding in-the-money vested and unvested options to acquire LVNTA shares and LVNTB shares (the "Eligible Options"), and: • with respect to each vested Eligible Option, Qurate Retail granted the Eligible Optionholder a vested new option with substantially the same terms and conditions as the exercised vested Eligible Option, except that the exercise price for the new option was, in the case of options to acquire shares of LVNTA, the closing price on the Grant Date per LVNTA share and, in the case of options to acquire shares of LVNTB, the fair market value on the Grant Date of the LVNTB shares as determined pursuant to the incentive plan under which the awards were granted; and • with respect to each unvested Eligible Option: • in satisfaction of the exercise, on a net settled basis, of the unvested Eligible Options, Qurate Retail granted the Eligible Optionholder a number of restricted LVNTA or LVNTB shares (the "Restricted Shares") with a vesting schedule identical to that of the unvested Eligible Options so exercised, and the Eligible Optionholder made an election under Section 83(b) of the Internal Revenue Code with respect to such Restricted Shares; and • Qurate Retail granted the Eligible Optionholder a new option (the "Unvested New Option") to acquire the same series of common stock and with substantially the same terms and conditions, including with respect to vesting and expiration, as the unvested Eligible Option exercised as set forth above, except that the number of LVNTA or LVNTB shares subject to such Unvested New Option was equal to the number of shares subject to the unvested Eligible Option minus the number of Restricted Shares received upon exercise of such unvested Eligible Option. The exercise price of such new option was, in the case of a LVNTA option, the closing price on the Grant Date per share of LVNTA, or, in the case of a LVNTB option, the fair market value on the Grant Date of the LVNTB shares as determined pursuant to the incentive plan under which the Unvested New Options were granted. The Option Exchange was considered a modification under ASC 718 — Stock Compensation, with the following impacts on compensation expense. The unamortized value of the unvested Eligible Options that were exercised, which was $13.5 million for LVNTA and LVNTB combined, will be expensed over the vesting period of the Restricted Shares attributable to the exercise of those options. The grant of new vested options resulted in incremental compensation expense in the fourth quarter of 2017 of $9.2 million for LVNTA and LVNTB combined. The grant of Unvested New Options resulted in incremental compensation expense totaling $6.4 million for LVNTA and LVNTB combined, which will be amortized over the vesting periods of those options. The Company has calculated the GDFV for all of its equity classified Awards and any subsequent remeasurement of its liability classified Awards using the Black-Scholes-Merton Model. The Company estimates the expected term of the Awards based on historical exercise and forfeiture data. For grants made in 2019, 2018 and 2017, the range of expected terms was 2.0 to 6.4 years . The volatility used in the calculation for Awards is based on the historical volatility of GCI Liberty's stock and the implied volatility of publicly traded GCI Liberty options. For grants made in 2019, 2018 and 2017 the range of volatilities was 24.8% to 31.6% . The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options. GCI Liberty - Outstanding Awards The following tables present the number and weighted average exercise price ("WAEP") of Awards to purchase GCI Liberty common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the Awards. Series A Weighted Aggregate average intrinsic Awards remaining value (000's) WAEP life (millions) Outstanding at January 1, 2019 1,650 $ 47.61 Granted 57 $ 71.09 Exercised (1,054 ) $ 47.49 Forfeited/Cancelled (49 ) $ 55.65 Outstanding at December 31, 2019 604 $ 48.67 4.4 years $ 13 Exercisable at December 31, 2019 403 $ 46.75 4.2 years $ 10 Series B Weighted Aggregate average intrinsic Awards remaining value (000's) WAEP life (millions) Outstanding at January 1, 2019 1,223 $ 56.10 Granted 22 $ 58.11 Exercised — $ — Forfeited/Cancelled — $ — Outstanding at December 31, 2019 1,245 $ 56.14 3.1 years $ 22 Exercisable at December 31, 2019 1,245 $ 56.14 3.1 years $ 22 As of December 31, 2019, the total unrecognized compensation cost related to unvested options and RSAs was approximately $2.5 million and $18.2 million , respectively. Such amounts will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 1.6 years and 2.5 years, respectively. As of December 31, 2019, GCI Liberty reserved for issuance upon exercise of outstanding stock options approximately 600 thousand shares of GCI Liberty Series A common stock and 1.2 million shares of GCI Liberty Series B common stock. GCI Liberty - Exercises The aggregate intrinsic value of all options exercised during the years ended December 31, 2019, 2018 and 2017 was $20.9 million , $0.8 million and $71.9 million , respectively. The aggregate intrinsic value of options exercised for the year ended December 31, 2017 includes approximately $56.3 million related to the intrinsic value of options exercised as a result of the Option Exchange. GCI Liberty - Restricted Shares As of December 31, 2019, GCI Liberty had approximately 748,000 and 83,000 unvested RSAs and RSUs of GCI Liberty common stock and preferred stock, respectively, held by certain directors, officers and employees of the Company. These Series A common stock, Series B common stock and Series A Cumulative Redeemable Preferred unvested RSAs, along with the Series A common stock unvested RSUs of GCI Liberty had a weighted average GDFV of $48.22 per share. The aggregate fair value of all restricted shares of GCI Liberty common and preferred stock that vested during the years ended December 31, 2019, 2018 and 2017 was $17.2 million , $21.9 million and $2.3 million , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Subsidiaries of the Company sponsor 401(k) plans, which provide their employees an opportunity to make contributions to a trust for investment in GCI Liberty common stock, as well as other mutual funds. The Company's subsidiaries make matching contributions to their plans based on a percentage of the amount contributed by employees. Employer cash contributions to all plans aggregated $10.6 million , $11.0 million and $0.2 million , respectively, for the years ended December 31, 2019, 2018 and 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guaranteed Service Levels Certain customers have guaranteed levels of service with varying terms. In the event the Company is unable to provide the minimum service levels, it may incur penalties or issue credits to customers. Litigation, Disputes, and Regulatory Matters The Company is involved in various lawsuits, billing disputes, legal proceedings, and regulatory matters that have arisen from time to time in the normal course of business. Management believes there are no proceedings from asserted and unasserted claims which if determined adversely would have a material adverse effect on the Company's financial position, results of operations or liquidity other than as discussed below. Rural Health Care Program GCI Holdings receives support from various Universal Service Fund USF programs including the USF Rural Health Care ("RHC") Program. The USF programs are subject to change by regulatory actions taken by the FCC, interpretations of or compliance with USF program rules, or legislative actions. Changes to any of the USF programs that GCI Holdings participates in could result in a material decrease in revenue and accounts receivable, which could have an adverse effect on GCI Holdings' business and the Company's financial position, results of operations or liquidity. The following paragraphs describe certain separate matters related to the RHC Program that impact or could impact the revenue earned and receivables recognized by the Company. As of December 31, 2019, the Company had net accounts receivables from the RHC Program in the amount of $118.8 million , which is included in Other assets, net and $12.0 million , which is included in Trade and other receivables in the consolidated balance sheets. In November 2017, the Universal Service Administrative Company ("USAC") requested further information in support of the rural rates charged to a number of GCI Holdings' RHC customers in connection with the funding requests for the year that runs July 1, 2017 through June 30, 2018. On October 10, 2018, GCI Holdings received a letter from the FCC's Wireline Competition Bureau (“Bureau”) notifying it of the Bureau’s decision to reduce the rural rates charged to RHC customers for the funding year that ended on June 30, 2018 by approximately 26% resulting in a reduction of total support payments of $27.8 million . The FCC also informed GCI Holdings that the same cost methodology used for the funding year that ended on June 30, 2018 would be applied to rates charged to RHC customers in subsequent funding years. In response to the letter from the Bureau, GCI Holdings filed an Application for Review of the Bureau’s decision with the FCC. In the third quarter of 2018, GCI Holdings recorded a $19.1 million reduction in its receivables balance as part of its acquisition accounting and recorded a reduction in revenue for the funding year that ended on June 30, 2018 of approximately $8.6 million . GCI Holdings has reduced RHC Program revenue by a similar rate as to the funding year that ended on June 30, 2018, which based on a current run rate would approximate $7.0 million per quarter through the funding year that ended June 30, 2019 and would approximate $8 million per quarter through the funding year that will end June 30, 2020 until it can reach a final resolution with the FCC regarding the funding amounts. On March 15, 2018, USAC announced that the funding requests for the year that runs July 1, 2017 through June 30, 2018 exceeded the funding available for the RHC Program. Since that time, on June 25, 2018, the FCC issued an order resulting in an increase of the annual RHC Program funding cap from $400.0 million to $571.0 million and applied it to the funding year that ended on June 30, 2018. The FCC also determined that it would annually adjust the RHC Program funding cap for inflation, beginning with the funding year ending on June 30, 2019 and carry-forward unused funds from past funding years for use in future funding years. As a result, aggregate funding is expected to be available to pay in full the approved funding under the RHC Program for the funding years ended on June 30, 2018 and 2019. On June 10, 2019, the FCC released a public notice noting that the funding cap for the funding year ending on June 30, 2020 is $594 million , also noting that USAC projects that $83 million in unused funds will be available for use in the funding year ending on June 30, 2020. On February 14, 2020, USAC informed the FCC that it had identified an additional $162.7 million of unused funds available for use in future years, and that it had begun issuing commitments fully funding qualified single year requests in the Telecom and Healthcare Connect portions of the RHC Program for the funding year ending on June 30, 2020. In addition, on March 23, 2018, GCI Holdings received a separate letter of inquiry and request for information from the Enforcement Bureau of the FCC relating to the period beginning January 1, 2015 and including all future periods, to which it is in the process of responding. This includes inquiry into the rates charged by GCI Holdings that are still pending, and presently it is unable to assess the ultimate resolution of this rate inquiry. Other aspects related to the Enforcement Bureau’s review of GCI Holdings’ compliance with program rules are discussed separately below. The ongoing uncertainty in program funding, as well as the uncertainty associated with the rate review, could have an adverse effect on its business, financial position, results of operations or liquidity. On November 30, 2018, GCI Holdings received multiple funding denial notices from USAC, denying requested funding from the RHC Program operated by a rural health customer (the “Customer”) for the funding year that ended on June 30, 2018. In November 2017, USAC requested information from the Customer related to bidding process documentation for two separate service contracts GCI Holdings has with the Customer. Although the Customer timely responded, USAC found that bids previously received were not submitted with the original funding request and/or that bidding information submitted was related to the wrong bidding year. The Customer appealed this decision in early 2019 and on May 6, 2019 USAC denied the Customer’s appeal. The Customer then appealed USAC’s decision to the Bureau on July 5, 2019. As of March 31, 2019, GCI Holdings had accounts receivable of approximately $21.3 million outstanding associated with these two service contracts, which is dependent upon receipt of funding from USAC. Given that USAC denied the Customer’s appeal as specifically outlined in the May 6, 2019 letter received by the Customer, the Company determined at the time it was probable that GCI Holdings incurred a loss and an accounts receivable reserve was recorded in the amount of $21.3 million and an associated bad debt expense was recorded during the first quarter of 2019 and included within Selling, general, and administrative expense in the consolidated statements of operations. Additionally, because of the uncertainty of the Customer’s future appeals process and uncertainty relating to the Company's ability to recover payment directly from the Customer, the Company no longer believed revenue associated with the two service contracts should be recognized. Historical annual revenue associated with the two service contracts was approximately $12 million in total and was expected to be the same in future periods. Revenue has not been recognized beyond the first quarter of 2019. On February 19, 2020, the Bureau issued an FCC order that granted the Customer’s appeal for the two service contracts that were originally denied funding by USAC. In the order, the FCC has directed USAC to reverse its previous funding denials. Because the FCC order provides the Company with additional information subsequent to December 31, 2019 about the resolution of a contingency that existed as of year-end, the Company has recognized the impact of the FCC order in its consolidated financial statements. Such impact resulted in the reversal of the previously recorded $21.3 million accounts receivable reserve and associated bad debt expense included within Selling, general, and administrative expense in the consolidated statements of operations. The Company also considered whether it should recognize revenue in 2019 related to the two service contracts for the period where it previously had not recognized revenue because of the uncertainty around its ability to collect consideration from the Customer. Because the Company was unable to conclude at any time prior to December 31, 2019 that collection of consideration under the two service contracts was probable, the Company concluded that revenue should not be recognized for any period subsequent to the first quarter of 2019 in accordance with the applicable revenue recognition criteria. The Company will reevaluate the applicable revenue recognition criteria in the first quarter of 2020 to determine whether it can (i) begin recognizing revenue associated with the Customer’s two service contracts and (ii) recognize revenue for the period in 2019 when the Company ceased recognizing revenue because of the uncertainty relating to its ability to recover payment directly from the Customer. Although the Company has not recognized revenue beyond the first quarter of 2019 related to the Customer’s two service contracts, the Company has continued to provide service to the Customer and such fact will be considered in the revenue recognition analysis in the first quarter of 2020. On August 20, 2019, the FCC released an order adopting changes to the RHC Program that will revise the manner in which support issued under the RHC Program will be calculated and approved. Some of these changes will become effective beginning with the funding year ending June 30, 2021, while others will apply beginning with the funding year ending June 30, 2022. On October 21, 2019, GCI Holdings appealed the order to the United States Court of Appeals for the District of Columbia Circuit. On December 6, 2019, that appeal was held in abeyance for nine months due to pending Petitions for Reconsideration filed by other parties at the FCC. The proposed methodology for calculating and approving support under these changes relies on information that has not yet been collected and analyzed by USAC, and therefore GCI Holdings cannot assess at this time the substance, impact on funding, or timing of these changes adopted by the FCC. In the fourth quarter of 2019, the Company became aware of potential RHC Program compliance issues related to certain of GCI Holdings’ currently active and expired contracts with certain of its RHC customers. The Company and its external experts performed significant and extensive procedures to determine whether GCI Holdings’ currently active and expired contracts with its RHC customers would be deemed to be in compliance with the RHC Program rules. Based on these procedures, the Company accrued a loss of approximately $17.0 million for contracts that are deemed probable of not complying with the RHC Program rules. The Company recorded the estimated loss as an expense within Selling, general, and administrative in the consolidated statements of operations. The Company also identified certain contracts where additional loss was reasonably possible and such loss could range from zero to $44.0 million . An accrual was not made for the amount of the reasonably possible loss in accordance with the applicable accounting guidance. GCI Holdings could also be assessed fines and penalties but such amounts could not be reasonably estimated. GCI Holdings has notified the FCC of its potential compliance issues and will continue to work with the FCC to resolve such matters. |
Information About the Company's
Information About the Company's Operating Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Information About the Company's Operating Segments | Information About the Company's Operating Segments The Company, through its interests in subsidiaries and other companies, is primarily engaged in the broadband communications services industry. The Company identifies its reportable segments as (A) those consolidated companies that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA (as defined below) or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of the Company’s annual pre‑tax earnings. The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, Adjusted OIBDA (as defined below), and subscriber metrics. For the year ended December 31, 2019 the Company has identified the following subsidiary as a reportable segment: • GCI Holdings-provides a full range of wireless, data, video, voice, and managed services to residential, businesses, governmental entities, and educational and medical institutions primarily in Alaska. For presentation purposes the Company is providing financial information for Liberty Broadband. While the Company’s equity method investment in Liberty Broadband does not meet the reportable segment threshold defined above, the Company believes that the inclusion of such information is relevant to users of these financial statements. • Liberty Broadband-an equity method affiliate of the Company, accounted for at fair value, has a non‑controlling interest in Charter, and a wholly‑owned subsidiary, Skyhook Wireless, Inc. ("Skyhook"). Charter is the second largest cable operator in the United States and a leading broadband communications services company providing video, Internet and voice services. Skyhook provides a Wi‑Fi based location platform focused on providing positioning technology and contextual location intelligence solutions. The Company’s operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the consolidated subsidiaries included in the segments are the same as those described in the Company’s summary of significant accounting policies. For segment reporting purposes, the Company defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock‑based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business' performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock‑based compensation, separately reported litigation settlements, insurance proceeds and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Performance Measures Years ended December 31, 2019 2018 2017 Revenue Adjusted OIBDA Revenue Adjusted OIBDA Revenue Adjusted OIBDA amounts in thousands GCI Holdings $ 869,662 256,878 715,842 217,832 — — Liberty Broadband 14,859 (16,891 ) 22,256 (3,528 ) 13,092 (16,416 ) Corporate and other 25,071 (21,865 ) 23,920 (24,731 ) 23,817 (25,762 ) 909,592 218,122 762,018 189,573 36,909 (42,178 ) Eliminate Liberty Broadband (14,859 ) 16,891 (22,256 ) 3,528 (13,092 ) 16,416 $ 894,733 235,013 739,762 193,101 23,817 (25,762 ) Other Information December 31, 2019 December 31, 2018 Total Investments Capital Total Investments Capital assets in affiliates expenditures assets in affiliates expenditures amounts in thousands GCI Holdings $ 3,162,753 585 147,022 3,343,372 719 131,029 Liberty Broadband 12,256,342 12,194,674 500 12,098,437 12,004,376 41 Corporate and other 8,770,692 167,058 1,459 5,317,450 176,311 3,323 24,189,787 12,362,317 148,981 20,759,259 12,181,406 134,393 Eliminate Liberty Broadband (12,256,342 ) (12,194,674 ) (500 ) (12,098,437 ) (12,004,376 ) (41 ) Consolidated $ 11,933,445 167,643 148,481 8,660,822 177,030 134,352 The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes: Years ended December 31, 2019 2018 2017 amounts in thousands Adjusted OIBDA $ 235,013 193,101 (25,762 ) Stock‑based compensation (24,897 ) (28,207 ) (26,583 ) Depreciation and amortization (266,333 ) (206,946 ) (3,252 ) Impairment of intangibles and long-lived assets (167,062 ) (207,940 ) — Insurance proceeds and restructuring, net 5,758 — — Operating income (loss) (217,521 ) (249,992 ) (55,597 ) Interest expense (153,803 ) (119,296 ) — Share of earnings (loss) of affiliates, net (2,629 ) 25,772 7,001 Realized and unrealized gains (losses) on financial instruments, net 3,002,400 (681,545 ) 637,164 Tax sharing agreement 26,646 (32,105 ) — Other, net 13,172 205 2,467 Earnings (loss) before income taxes $ 2,668,265 (1,056,961 ) 591,035 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2019 and 2018 : First Quarter Second Quarter Third Quarter Fourth Quarter amounts in thousands, except per share amounts 2019 Revenue $ 217,736 217,566 227,044 232,387 Operating income (loss) $ (32,644 ) (16,253 ) (4,174 ) (164,450 ) Net earnings (loss) $ 678,486 459,044 89,294 711,418 Net earnings (loss) attributable to GCI Liberty, Inc. shareholders $ 678,543 459,044 89,322 711,789 Basic net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ 6.47 4.38 0.85 6.75 Diluted net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ 6.41 4.34 0.84 6.72 2018 (1) Revenue $ 61,204 233,490 210,146 234,922 Operating income (loss) $ (7,369 ) (593 ) (19,869 ) (222,161 ) Net earnings (loss) $ (170,731 ) (303,480 ) 317,256 (716,699 ) Net earnings (loss) attributable to GCI Liberty, Inc. shareholders $ (170,692 ) (303,326 ) 317,383 (716,668 ) Basic net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ (1.58 ) (2.82 ) 2.95 (6.72 ) Diluted net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ (1.58 ) (2.82 ) 2.91 (6.72 ) (1) As of March 9, 2018, the Company's financial condition and results of operations include the activities of GCI Holdings, which are further described in notes 1 and 4. |
Summary of Significant Accoun_2
Summary of Significant Accounting Principles (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of investments which are readily convertible into cash and have maturities of three months or less at the time of acquisition. Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and corporate debt securities. The Company maintains some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. |
Accounts Receivable and Allowance for Doubtful Receivables | Accounts Receivable and Allowance for Doubtful Receivables Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful receivables is the Company's best estimate of the amount of probable credit losses in its existing accounts receivable. The Company bases its estimates on the aging of its accounts receivable balances, financial health of specific customers, regional economic data, changes in its collections process, regulatory requirements and its customers’ compliance with Universal Service Administrative Company rules. The Company reviews its allowance for doubtful receivables methodology at least annually. Depending upon the type of account receivable the Company's allowance is calculated using a pooled basis with an allowance for all accounts greater than 120 days past due, a pooled basis using a percentage of related accounts, or a specific identification method. When a specific identification method is used, potentially uncollectible accounts due to bankruptcy or other issues are reviewed individually for collectability. Account balances are charged off against the allowance when it determines that it is probable the receivable will not be recovered. The Company does not have any off-balance-sheet credit exposure related to its customers. |
Investments | Investments All marketable equity and debt securities held by the Company are carried at fair value, generally based on quoted market prices and changes in the fair value of such securities are reported in realized and unrealized gain (losses) on financial instruments in the accompanying consolidated statements of operations. The Company elected the measurement alternative (defined as the cost of the security, adjusted for changes in fair value when there are observable prices, less impairments) for its equity securities without readily determinable fair values. For those investments in affiliates in which the Company has the ability to exercise significant influence, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the affiliate as they occur rather than as dividends or other distributions are received. Losses are limited to the extent of the Company’s investment in, advances to and commitments for the investee. In the event the Company is unable to obtain accurate financial information from an equity affiliate in a timely manner, the Company records its share of earnings or losses of such affiliate on a lag. Changes in the Company’s proportionate share of the underlying equity of an equity method investee, which result from the issuance of additional equity securities by such equity investee, are recognized in the statements of operations through the Other, net line item. To the extent there is a difference between the Company's ownership percentage in the underlying equity of an equity method investee and the Company's carrying value, such difference is accounted for as if the equity method investee were a consolidated subsidiary. The Company continually reviews its equity method investments to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value; the severity of the decline; and the financial condition, operating performance and near term prospects of the investee. In addition, the Company considers the reason for the decline in fair value, be it general market conditions, industry specific or investee specific; analysts’ ratings and estimates of 12-month share price targets for the investee; changes in stock price or valuation subsequent to the balance sheet date; and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for a recovery in fair value. If the decline in fair value is deemed to be other than temporary, the carrying value of the equity method investment is written down to fair value. In situations where the fair value of an investment is not evident due to a lack of a public market price or other factors, the Company uses its best estimates and assumptions to arrive at the estimated fair value of such investment. The Company’s assessment of the foregoing factors involves a high degree of judgment and accordingly, actual results may differ materially from the Company’s estimates and judgments. Writedowns for equity method investments are included in share of earnings (losses) of affiliates. The Company performs a qualitative assessment each reporting period for its equity securities without readily determinable fair values to identify whether an equity security could be impaired. When the Company's qualitative assessment indicates that an impairment could exist, it estimates the fair value of the investment and to the extent the fair value is less than the carrying value, it records the difference as an impairment in the consolidated statements of operations. |
Derivative Instruments | Derivative Instruments The Company’s derivative is recorded on the balance sheet at fair value. The Company's derivative is not designated as a hedge, and changes in the fair value of the derivative are recognized in earnings. The fair value of the Company’s derivative instrument is estimated using the Black-Scholes-Merton model. The Black-Scholes-Merton model incorporates a number of variables in determining such fair values, including expected volatility of the underlying security and an appropriate discount rate. The Company obtains volatility rates from pricing services based on the expected volatility of the underlying security over the remaining term of the derivative instrument. A discount rate is obtained at the inception of the derivative instrument and updated each reporting period, based on the Company’s estimate of the discount rate at which it could currently settle the derivative instrument. The Company considered its own credit risk as well as the credit risk of its counterparties in estimating the discount rate. Management judgment is required in estimating the Black-Scholes-Merton model variables. |
Property and Equipment | Property and Equipment Property and equipment is stated at depreciated cost less impairments, if any. Construction costs of facilities are capitalized. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2019, that management intends to place in service during 2020. Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable. Repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments are capitalized. Accumulated depreciation is removed and gains or losses are recognized at the time of sales or other dispositions of property and equipment. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company periodically reviews the carrying amounts of its property and equipment and its intangible assets (other than goodwill and indefinite-lived intangible assets) to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. If the carrying amount of the asset group is greater than the expected undiscounted cash flows to be generated by such asset group, including its ultimate disposition, an impairment adjustment is to be recognized. Such adjustment is measured by the amount that the carrying value of such asset groups exceeds their fair value. The Company generally measures fair value by considering sale prices for similar asset groups or by discounting estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of asset groups. Accordingly, actual results could vary significantly from such estimates. Asset groups to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. |
Asset Retirement Obligations | Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred in Other liabilities in the consolidated balance sheet. When the liability is initially recorded, the Company capitalizes a cost by increasing the carrying amount of the related long-lived asset. In periods subsequent to initial measurement, changes in the liability for an asset retirement obligation resulting from revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Certain of the Company's network facilities are on property that requires it to have a permit and the permit contains provisions requiring the Company to remove its network facilities in the event the permit is not renewed. The Company expects to continually renew its permits and therefore cannot estimate any liabilities associated with such agreements. A remote possibility exists that the Company would not be able to successfully renew a permit, which could result in it incurring significant expense in complying with restoration or removal provisions. |
Intangible Assets | Intangible Assets Internally used software, whether developed or purchased and installed as is, is capitalized and amortized using the straight-line method over an estimated useful life of three to five years . The Company capitalizes certain costs associated with internally developed software such as payroll costs of employees devoting time to the projects, external direct costs for materials and services, and interest costs incurred. Costs associated with internally developed software to be used internally are expensed until the point the project has reached the development stage. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. The capitalization of software requires judgment in determining when a project has reached the development stage. The Company has Software as a Service ("SaaS") arrangements which are accounted for as service agreements, and are not capitalized. Internal and other third party costs for SaaS arrangements are expensed as incurred. Data migration costs for such arrangements are expensed consistent with the same type of costs for internally developed and modified software. Additionally, configuration costs paid to the vendor are recorded as a prepaid expense and expensed over the term of the SaaS arrangement. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment upon certain triggering events. Intangible assets with estimable useful lives are being amortized over 1 to 20 year periods with a weighted-average life of 13.80 years. Goodwill, cable certificates (certificates of convenience and public necessity), wireless licenses and other intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment at least annually. Cable certificates represent certain perpetual operating rights to provide cable services. Wireless licenses represent the right to utilize certain radio frequency spectrum to provide wireless communications services. Goodwill represents the excess of cost over fair value of net assets acquired in connection with a business acquisition. The Company's annual impairment assessment of its indefinite-lived intangible assets is performed during the fourth quarter of each year. The accounting guidance allows entities the option to perform a quantitative impairment test for goodwill. The entity may resume performing the qualitative assessment in any subsequent period. In evaluating goodwill on a qualitative basis, the Company reviews the business performance of each reporting unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it was more likely than not that an indicated impairment exists for any of its reporting units. The Company considers whether there are any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges, the legal environments and how these factors might impact company specific performance in future periods. As part of the analysis the Company also considers fair value determinations for certain reporting units that have been made at various points throughout the current year and prior year for other purposes. If based on the qualitative analysis it is more likely than not that an impairment exists, the Company performs the quantitative impairment test. The quantitative goodwill impairment test compares the estimated fair value of a reporting unit to its carrying value and to the extent the carrying value is greater than the fair value, the difference is recorded as an impairment in the consolidated statements of operations. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company's valuation analyses are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. The accounting guidance also permits entities to first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. The accounting guidance also allows entities the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to the quantitative impairment test. The entity may resume performing the qualitative assessment in any subsequent period. If the qualitative assessment supports that it is more likely than not that the carrying value of the Company’s indefinite-lived intangible assets, other than goodwill, exceeds its fair value, then a quantitative assessment is performed. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. |
Revenue Recognition | Revenue Recognition In May 2014, the Financial Accounting Standards Board (the "FASB") issued new accounting guidance on revenue from contracts with customers. The Company adopted the new guidance, which established Accounting Standards Codification Topic 606 ("ASC 606"), effective January 1, 2018, under the modified retrospective transition method. The impact of the new guidance on Evite was not material to the consolidated financial statements. GCI Holdings adopted the new guidance prior to its acquisition by HoldCo. As a result, there was no impact to the Company’s consolidated financial statements related to GCI Holdings’ adoption of the new guidance. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Substantially all of the Company's revenue is earned from services transferred over time. If at contract inception the Company determines the time period between when it transfers a promised good or service to a customer and when the customer pays for that good or service is one year or less, the Company does not adjust the promised amount of consideration for the effects of a significant financing component. Certain of the Company's customers have guaranteed levels of service. If an interruption in service occurs, the Company does not recognize revenue for any portion of the monthly service fee that will be refunded to the customer or not billed to the customer due to these service level agreements. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue-producing transaction that are collected by the Company from a customer, are excluded from revenue from contracts with customers. Nature of Services and Products Wireless Wireless revenue is generated by providing access to, and usage of the Company's network by consumer, business, and wholesale carrier customers. Additionally, the Company generates revenue by selling wireless equipment such as handsets and tablets. In general, access revenue is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Equipment sales revenue associated with the sale of wireless devices and accessories is generally recognized when the products are delivered to and control transfers to the customer. Consideration received from the customer is allocated to the service and products based on stand-alone selling prices when purchased together. New and existing wireless customers have the option to participate in Upgrade Now, a program that provides eligible customers with the ability to purchase certain wireless devices in installments over a period of up to 24 months . Participating customers have the right to trade-in the original equipment for a new device after making the equivalent of 12 monthly installment payments, provided their handset is in good working condition. Upon upgrade, the outstanding balance of the wireless equipment installment plan is exchanged for the used handset. The Company accounts for this upgrade option as a right of return with a reduction of Revenue and Operating expense for handsets expected to be upgraded based on historical data. Data Data revenue is generated by providing data network access, high-speed internet services, and product sales. Monthly service revenue for data network access and high-speed internet services is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Internet service excess usage revenue is recognized when the services are provided. The Company recognizes revenue for product sales when a customer takes possession of the equipment. The Company provides telecommunications engineering services on a time and materials basis. Revenue is recognized for these services as-invoiced. Video Video revenue is generated primarily from residential and business customers that subscribe to the Company's cable video plans. Video revenue is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Voice Voice revenue is for fixed monthly fees for voice plans as well as usage based fees for long-distance service usage. Voice plan fees are billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Usage based fees are recognized as services are provided. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations as customers purchase multiple services and products within those contracts. For such arrangements, revenue is allocated to each performance obligation based on the relative standalone selling price for each service or product within the contract. Standalone selling prices are generally determined based on the prices charged to customers. Significant Judgments Some contracts with customers include variable consideration, and may require significant judgment to determine the total transaction price, which impacts the amount and timing of revenue recognized. The Company uses historical customer data to estimate the amount of variable consideration included in the total transaction price and reassess its estimate at each reporting period. Any change in the total transaction price due to a change in the estimated variable consideration is allocated to the performance obligations on the same basis as at contract inception. Any portion of a change in transaction price that is allocated to a satisfied or partially satisfied performance obligation is recognized as revenue (or a reduction in revenue) in the period of the transaction price change. Variable consideration has been constrained to reduce the likelihood of a significant revenue reversal. Often contracts with customers include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the standalone selling price for each distinct performance obligation. Services and products are generally sold separately, and help establish standalone selling price for services and products the Company provides. Remaining Performance Obligations The Company applies certain practical expedients as permitted under ASC 606 and does not disclose information about remaining performance obligations that have original expected durations of one year or less, information about revenue remaining from usage based performance obligations that are recognized over time as-invoiced, or variable consideration allocated to wholly unsatisfied performance obligations. Assets Recognized from the Costs to Obtain a Contract with a Customer Management expects that incremental commission fees paid to intermediaries as a result of obtaining customer contracts are recoverable and therefore the Company capitalizes them as contract costs. Capitalized commission fees are amortized based on the transfer of goods or services to which the assets relate which typically range from two to five years , and are included in Selling, general, and administrative expenses. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in Selling, general, and administrative expenses. |
Lease, Grant, and Revenue from Subsidies | Lease, Grant, and Revenue from Subsidies Universal Service Fund GCI Holdings receives support from each of the various Universal Service Fund ("USF") programs: high cost, low income, rural health care, and schools and libraries. The programs are subject to change by regulatory actions taken by the Federal Communications Commission ("FCC") or legislative actions, therefore, changes to the programs could result in a material decrease in revenue that the Company has recorded. Revenue recognized from the programs was 24% and 23% |
Stock-Based Compensation | Stock-Based Compensation As more fully described in note 14, the Company has granted to certain directors, employees and employees of its subsidiaries, restricted shares ("RSAs"), restricted stock units ("RSUs") and options to purchase shares of GCI Liberty's common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options, RSAs and RSUs) based on the grant-date fair value of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date. The Company recognizes forfeitures as they occur. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying value amounts and income tax basis of assets and liabilities and the expected benefits of utilizing net operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using enacted tax rates in effect for each taxing jurisdiction in which the Company operates for the year in which those temporary differences are expected to be recovered or settled. Net deferred tax assets are then reduced by a valuation allowance if the Company believes it is more likely than not such net deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. Such interest expense is included in Interest expense in the accompanying consolidated statements of operations. Any accrual of penalties related to underpayment of income taxes on uncertain tax positions is included in Other income (expense) in the accompanying consolidated statements of operations. |
Earnings per Share (EPS) | Earnings per Share (EPS) Basic earnings (loss) per common share ("EPS") is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding ("WASO") for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive. The total number of Series A and Series B common shares outstanding on March 9, 2018, 109,004,250 , is being used in the calculation of both basic and diluted earnings per share for all periods prior to the date of the HoldCo Split-Off. |
Reclassifications | Reclassifications Reclassifications have been made to the prior years' consolidated financial statements to conform to classifications used in the current year. |
Estimates | Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company considers (i) non-recurring fair value measurements of non-financial instruments and (ii) accounting for income taxes to be its most significant estimates. The Company has investments that are accounted for using the equity method. The Company does not control the decision making process or business management practices of these affiliates. Accordingly, the Company relies on management of these affiliates to provide it with accurate financial information prepared in accordance with GAAP that the Company uses in the application of the equity method. In addition, the Company relies on audit reports that are provided by the affiliates’ independent auditors on the financial statements of such affiliates. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliates that would have a material effect on the Company’s consolidated financial statements. |
New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued new guidance which 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. The guidance will be effective for the Company in the first quarter of 2020 with early adoption permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Principles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Changes in the Allowance for Doubtful Receivables | Changes in the allowance for doubtful receivables during the years ended December 31, 2019 , 2018 and 2017 are summarized below (amounts in thousands): Additions Deductions Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Write-offs net of recoveries Balance at end of year 2019 $ 7,555 10,139 — 4,522 13,172 2018 $ — 8,741 — 1,186 7,555 2017 $ 1,100 — — 1,100 — |
Schedule of Net Property and Equipment | Net property and equipment consists of the following: December 31, 2019 2018 amounts in thousands Land and buildings (25 years) $ 118,973 105,525 Telephony transmission equipment and distribution facilities (5-20 years) 837,966 763,957 Cable transmission equipment and distribution facilities (5-30 years) 120,642 100,391 Support equipment and systems (3-20 years) 132,854 118,230 Customer premise equipment (2-20 years) 34,202 21,351 Fiber optic cable systems (15-25 years) 53,646 53,384 Other (5-15 years) 21,478 19,381 Property and equipment under finance leases 17,695 41,084 Construction in progress 95,386 113,819 1,432,842 1,337,122 Less accumulated depreciation 336,691 145,321 Less accumulated depreciation on property and equipment under finance leases 5,250 7,195 Property and equipment, net $ 1,090,901 1,184,606 |
Reconciliation of Asset Retirement Obligations | The asset retirement obligation is in Other liabilities in the consolidated balance sheets. Following is a reconciliation of the beginning and ending aggregate carrying amounts of the liability for asset retirement obligations (amounts in thousands): Balance at January 1, 2018 $ — Liability acquired 38,686 Liability incurred 113 Accretion expense 1,662 Liability settled — Balance at December 31, 2018 40,461 Liability incurred 217 Accretion expense 1,596 Liability settled (74 ) Balance at December 31, 2019 $ 42,200 |
Revenue from Contracts with Customers by Customer Type and Service Offerings | Revenue from contracts with customers, classified by customer type and significant service offerings follows: Years ended December 31, 2019 2018 amounts in thousands GCI Holdings Consumer Revenue Wireless $ 118,425 94,713 Data 169,332 130,631 Video 83,928 72,826 Voice 16,479 14,792 Business Revenue Wireless 76,795 63,481 Data 273,847 223,121 Video 16,170 16,786 Voice 25,740 19,820 Evite 25,071 23,920 Lease, grant, and revenue from subsidies 88,946 79,672 Total $ 894,733 739,762 |
Schedule of Weighted Average Number of Shares | Series A and Series B Common Stock Year ended December 31, 2019 March 9, 2018 through December 31, 2018 number of shares in thousands Basic WASO 105,328 107,924 Potentially dilutive shares 489 — Diluted WASO 105,817 107,924 Antidilutive shares excluded from diluted WASO, including potentially dilutive shares, as a result of the Company's net loss attributable to GCI Liberty, Inc. shareholders — 1,127 |
Supplemental Disclosures to C_2
Supplemental Disclosures to Consolidated Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Years ended December 31, 2019 2018 2017 amounts in thousands Cash paid for acquisition of GCI Holdings: Property and equipment $ — 1,211,392 — Intangible assets not subject to amortization — 1,538,544 — Intangible assets subject to amortization — 468,737 — Receivables and other assets — 254,436 — Liabilities assumed — (2,233,177 ) — Deferred tax assets (liabilities) — (276,683 ) — Fair value of equity consideration — (1,111,206 ) — Cash and restricted cash paid (received) for acquisitions, net of cash acquired $ — (147,957 ) — Cash paid for interest, net of amounts capitalized $ 155,977 132,103 6 Non-cash additions for purchases of property and equipment $ 1,571 15,916 — |
Schedule of Cash and Cash Equivalents | The following table reconciles cash and cash equivalents and restricted cash reported in the Company's consolidated balance sheets to the total amount presented in its consolidated statements of cash flows: Years ended December 31, 2019 2018 2017 amounts in thousands Cash and cash equivalents $ 569,520 491,257 573,210 Restricted cash included in other current assets 6,630 775 938 Total cash and cash equivalents and restricted cash at end of period $ 576,150 492,032 574,148 |
Schedule of Restricted Cash | The following table reconciles cash and cash equivalents and restricted cash reported in the Company's consolidated balance sheets to the total amount presented in its consolidated statements of cash flows: Years ended December 31, 2019 2018 2017 amounts in thousands Cash and cash equivalents $ 569,520 491,257 573,210 Restricted cash included in other current assets 6,630 775 938 Total cash and cash equivalents and restricted cash at end of period $ 576,150 492,032 574,148 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Preliminary Acquisition Price Allocation | The acquisition price allocation for GCI Liberty is as follows (amounts in thousands): Cash and cash equivalents including restricted cash $ 147,957 Receivables 171,014 Property and equipment 1,211,392 Goodwill 966,044 Intangible assets not subject to amortization 572,500 Intangible assets subject to amortization 468,737 Other assets 83,422 Deferred revenue (92,561 ) Debt, including capital leases (1,707,002 ) Other liabilities (251,692 ) Deferred income tax liabilities (276,683 ) Preferred stock (174,922 ) Non-controlling interest (7,000 ) $ 1,111,206 |
Pro Forma Revenue and Net Earnings | The unaudited pro forma revenue, net earnings and basic and diluted net earnings per common share of GCI Liberty, prepared utilizing the historical financial statements of HoldCo, giving effect to acquisition accounting related adjustments made at the time of acquisition, as if the acquisition discussed above occurred on January 1, 2017, are as follows: Years ended December 31, 2018 2017 amounts in thousands, except per share amounts Revenue $ 899,210 918,726 Net earnings (loss) $ (872,306 ) 713,377 Net earnings (loss) attributable to GCI Liberty shareholders $ (871,839 ) 713,882 Basic net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ (8.08 ) 6.55 Diluted net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ (8.08 ) 6.55 |
Assets and Liabilities Measur_2
Assets and Liabilities Measured at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The Company’s assets and liabilities measured at fair value are as follows: December 31, 2019 December 31, 2018 Description Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) amounts in thousands Cash equivalents $ 533,484 533,484 — 384,071 384,071 — Equity securities $ 2,600,008 2,600,008 — 1,529,901 1,529,901 — Investment in Liberty Broadband $ 5,367,242 5,367,242 — 3,074,373 3,074,373 — Derivative instrument liability $ 71,305 — 71,305 20,340 — 20,340 Indemnification obligation $ 202,086 — 202,086 78,522 — 78,522 Exchangeable senior debentures $ 658,839 — 658,839 462,336 — 462,336 |
Schedule of Realized and Unrealized Gains (Losses) on Financial Instruments | Realized and unrealized gains (losses) on financial instruments, net are comprised of changes in the fair value of the following: Years ended December 31, 2019 2018 2017 amounts in thousands Equity securities $ 1,074,736 (274,393 ) 258,629 Investment in Liberty Broadband 2,292,869 (560,413 ) 473,342 Derivative instruments (50,965 ) 75,970 (94,807 ) Indemnification obligation (123,564 ) 70,007 NA Exchangeable senior debentures (190,676 ) 7,284 NA $ 3,002,400 (681,545 ) 637,164 |
Investments in Equity Securit_2
Investments in Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Equity Securities | Investments in equity securities, the majority of which are carried at fair value, are summarized as follows: December 31, 2019 2018 amounts in thousands Charter (a) $ 2,599,253 1,526,984 Other investments (b) 6,040 6,533 $ 2,605,293 1,533,517 (a) A portion of the Charter equity securities are considered covered shares and subject to certain contractual restrictions in accordance with the indemnification agreement. See note 5 for additional discussion of the indemnification agreement. (b) The Company has elected the measurement alternative for a portion of these securities. |
Investments in Affiliates Acc_2
Investments in Affiliates Accounted for Using the Equity Method (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table includes the Company’s carrying amount and percentage ownership of the more significant investments in affiliates at December 31, 2019 and the carrying amount at December 31, 2018: December 31, 2019 December 31, 2018 Percentage ownership Market value Carrying amount Carrying amount dollars in thousands LendingTree (a) 26.5 % $ 1,045,044 $ 166,465 174,002 Other various NA 1,178 3,028 $ 167,643 177,030 (a) Both the Company's ownership interest in LendingTree and the Company's share of LendingTree's earnings (losses) are reported on a three month lag. The market value disclosed is as of December 31, 2019. December 31, 2019 2018 amounts in thousands Current assets $ 52,133 84,574 Investment in Charter, accounted for using the equity method 12,194,674 12,004,376 Other assets 9,535 9,487 Total assets 12,256,342 12,098,437 Long-term debt 572,944 522,928 Deferred income tax liabilities 999,757 965,829 Other liabilities 15,695 11,062 Equity 10,667,946 10,598,618 Total liabilities and shareholders' equity $ 12,256,342 12,098,437 Years ended December 31, 2019 2018 2017 amounts in thousands Revenue $ 14,859 22,256 13,092 Operating expenses, net (44,136 ) (34,270 ) (38,570 ) Operating income (loss) (29,277 ) (12,014 ) (25,478 ) Share of earnings (losses) of affiliates 286,401 166,146 2,508,991 Gain (loss) on dilution of investment in affiliate (79,329 ) (43,575 ) (17,872 ) Realized and unrealized gains (losses) on financial instruments, net 1,170 3,659 3,098 Other income (expense), net (23,807 ) (22,339 ) (18,139 ) Income tax benefit (expense) (37,942 ) (21,924 ) (416,933 ) Net earnings (loss) $ 117,216 69,953 2,033,667 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill are as follows: GCI Holdings Corporate and other Total amounts in thousands Balance at January 1, 2018 $ — 25,569 25,569 Acquisitions 966,044 — 966,044 Impairment (135,776 ) — (135,776 ) Balance at December 31, 2018 $ 830,268 25,569 855,837 Impairment — — — Balance at December 31, 2019 $ 830,268 25,569 855,837 |
Schedule of Intangible Assets Subject to Amortization | Intangible Assets Subject to Amortization December 31, 2019 December 31, 2018 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in thousands Customer relationships $ 408,267 (95,167 ) 313,100 $ 408,267 (55,417 ) 352,850 Other amortizable intangibles 139,721 (60,842 ) 78,879 122,759 (39,603 ) 83,156 Total $ 547,988 (156,009 ) 391,979 $ 531,026 (95,020 ) 436,006 |
Schedule of Amortization Expense for Amortizable Intangible Assets | Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Years ending December 31, 2020 $ 53,961 2021 $ 43,720 2022 $ 37,558 2023 $ 34,178 2024 $ 30,490 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt is summarized as follows: Outstanding principal Carrying value December 31, December 31, December 31, 2019 2019 2018 amounts in thousands Margin Loan Facility $ 1,300,000 1,300,000 900,000 Exchangeable senior debentures 477,250 658,839 462,336 Senior notes 775,000 796,138 803,287 Senior credit facility 512,666 512,666 715,124 Wells Fargo note payable 7,066 7,066 7,554 Deferred financing costs — (8,491 ) (2,267 ) Total debt $ 3,071,982 3,266,218 2,886,034 Debt classified as current, net of deferred financing costs (3,008 ) (900,759 ) Total long-term debt $ 3,263,210 1,985,275 |
Schedule of Maturities of Long-term Debt | The annual principal maturities of debt, based on stated maturity dates, for each of the next five years is as follows (amounts in thousands): 2020 $ 3,008 2021 1,578,031 2022 233,344 2023 477,871 2024 325,646 2025 and thereafter 454,082 Total debt $ 3,071,982 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Expense and Supplemental Cash Flow Information | The remaining weighted-average lease term and the weighted average discount rate were as follows: Year ended December 31, 2019 Weighted-average remaining lease term (years): Finance leases 3.5 Operating leases 4.9 Weighted-average discount rate: Finance leases 5.1 % Operating leases 5.0 % The components of lease cost during the year ended December 31, 2019 were as follows: Year ended December 31, 2019 Operating lease cost (1) $ 48,481 Finance lease cost Depreciation of leased assets $ 4,997 Interest on lease liabilities 1,196 Total finance lease cost $ 6,193 (1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the financial statements. Supplemental cash flow information related to leases was as follows: Year ended December 31, 2019 amounts in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 46,192 Operating cash flows from finance leases $ 1,141 Financing cash flows from finance leases $ 7,717 ROU assets obtained in exchange for lease obligations Operating leases $ 39,515 Finance leases $ — |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: December 31, 2019 amounts in thousands Operating leases: Operating lease ROU assets, net (1) $ 123,831 Current operating lease liabilities (2) $ 39,756 Operating lease liabilities (3) 80,811 Total operating lease liabilities $ 120,567 Finance Leases: Property and equipment, at cost $ 17,695 Accumulated depreciation (5,250 ) Property and equipment, net $ 12,445 Current obligations under finance leases (4) $ 4,640 Obligations under finance leases 7,281 Total finance lease liabilities $ 11,921 (1) Operating lease ROU assets, net are included within the Other assets, net line item in the accompanying consolidated balance sheets. (2) Current operating lease liabilities are included within the Other current liabilities line item in the accompanying consolidated balance sheets. (3) Operating lease liabilities are included within the Other liabilities line item in the accompanying consolidated balance sheets. (4) Current obligations under finance leases are included within the Other current liabilities line item in the accompanying consolidated balance sheets. |
Future Lease Payments on Finance Leases | Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at December 31, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligations amounts in thousands 2020 $ 5,159 45,013 7,797 2021 3,981 35,862 7,953 2022 1,973 22,120 8,112 2023 678 14,855 8,274 2024 688 5,574 8,439 Thereafter 1,046 19,192 134,395 Total lease payments 13,525 142,616 174,970 Less: imputed interest (1,604 ) (22,049 ) (83,581 ) Total lease liabilities $ 11,921 120,567 91,389 |
Future Lease Payments on Operating Leases | Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at December 31, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligations amounts in thousands 2020 $ 5,159 45,013 7,797 2021 3,981 35,862 7,953 2022 1,973 22,120 8,112 2023 678 14,855 8,274 2024 688 5,574 8,439 Thereafter 1,046 19,192 134,395 Total lease payments 13,525 142,616 174,970 Less: imputed interest (1,604 ) (22,049 ) (83,581 ) Total lease liabilities $ 11,921 120,567 91,389 |
Future Lease Payments on Tower Obligation | Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at December 31, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligations amounts in thousands 2020 $ 5,159 45,013 7,797 2021 3,981 35,862 7,953 2022 1,973 22,120 8,112 2023 678 14,855 8,274 2024 688 5,574 8,439 Thereafter 1,046 19,192 134,395 Total lease payments 13,525 142,616 174,970 Less: imputed interest (1,604 ) (22,049 ) (83,581 ) Total lease liabilities $ 11,921 120,567 91,389 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Benefit (Expense) | Income tax benefit (expense) consists of: Years ended December 31, 2019 2018 2017 amounts in thousands Current: Federal $ (30 ) 607 — State and local (23 ) (24 ) — (53 ) 583 — Deferred: Federal (542,259 ) 190,931 160,150 State and local (187,711 ) (8,207 ) (26,628 ) (729,970 ) 182,724 133,522 Income tax benefit (expense) $ (730,023 ) 183,307 133,522 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017 as a result of the following: Years ended December 31, 2019 2018 2017 amounts in thousands Computed expected tax benefit (expense) $ (560,336 ) 221,962 (206,862 ) State and local income taxes, net of federal income taxes (158,349 ) 74,105 (17,001 ) Nontaxable equity contribution (20,353 ) 7,960 — Executive compensation (2,437 ) (7,114 ) — Change in state tax rate due to acquisition — (117,496 ) — Change in state tax rate 10,078 37,073 — Change in tax rate due to Tax Act — — 347,979 Deductible stock compensation 3,394 (131 ) 14,116 Goodwill impairment — (28,513 ) — Change in valuation allowance affecting tax expense (40 ) (189 ) (384 ) Other, net (1,980 ) (4,350 ) (4,326 ) Income tax benefit (expense) $ (730,023 ) 183,307 133,522 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: December 31, 2019 2018 amounts in thousands Deferred tax assets: Loss and capital carryforwards $ 179,473 153,931 Deferred revenue 20,026 23,716 Accrued stock compensation 3,889 3,598 Debt 44,843 6,209 Operating lease liability 33,656 — Other accrued liabilities 9,578 20,108 Other future deductible amounts 35,489 19,189 Deferred tax assets 326,954 226,751 Valuation allowance (1,366 ) (1,326 ) Net deferred tax assets 325,588 225,425 Deferred tax liabilities Investments 1,439,140 573,016 Fixed assets 209,094 232,899 Intangible assets 169,834 213,206 Operating lease ROU assets 34,629 — Deferred tax liabilities 1,852,697 1,019,121 Net deferred tax liabilities $ 1,527,109 793,696 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Key Terms of NMTC Transactions | The following table summarizes the key terms of each of the NMTC transactions: Transaction Date Loan to Investment Fund Interest Rate on Loan to Investment Fund Maturity Date US Bancorp Investment Loan to Unicom Interest Rate on Loan(s) to Unicom Expected Put Option Exercise March 21, 2017 $6.7 million 1% March 21, 2040 $3.3 million $9.8 million 0.7% March 2024 December 22, 2017 $10.4 million 1% December 22, 2047 $5.1 million $14.7 million 0.7% to 1.2% December 2024 October 2, 2019 $4.8 million 1% October 2, 2049 $2.2 million $6.7 million 1.8% October 2026 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Number and Weighted Average Exercise Price of Awards | The following tables present the number and weighted average exercise price ("WAEP") of Awards to purchase GCI Liberty common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the Awards. Series A Weighted Aggregate average intrinsic Awards remaining value (000's) WAEP life (millions) Outstanding at January 1, 2019 1,650 $ 47.61 Granted 57 $ 71.09 Exercised (1,054 ) $ 47.49 Forfeited/Cancelled (49 ) $ 55.65 Outstanding at December 31, 2019 604 $ 48.67 4.4 years $ 13 Exercisable at December 31, 2019 403 $ 46.75 4.2 years $ 10 Series B Weighted Aggregate average intrinsic Awards remaining value (000's) WAEP life (millions) Outstanding at January 1, 2019 1,223 $ 56.10 Granted 22 $ 58.11 Exercised — $ — Forfeited/Cancelled — $ — Outstanding at December 31, 2019 1,245 $ 56.14 3.1 years $ 22 Exercisable at December 31, 2019 1,245 $ 56.14 3.1 years $ 22 |
Information About the Company_2
Information About the Company's Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Performance Measures Years ended December 31, 2019 2018 2017 Revenue Adjusted OIBDA Revenue Adjusted OIBDA Revenue Adjusted OIBDA amounts in thousands GCI Holdings $ 869,662 256,878 715,842 217,832 — — Liberty Broadband 14,859 (16,891 ) 22,256 (3,528 ) 13,092 (16,416 ) Corporate and other 25,071 (21,865 ) 23,920 (24,731 ) 23,817 (25,762 ) 909,592 218,122 762,018 189,573 36,909 (42,178 ) Eliminate Liberty Broadband (14,859 ) 16,891 (22,256 ) 3,528 (13,092 ) 16,416 $ 894,733 235,013 739,762 193,101 23,817 (25,762 ) |
Reconciliation of Assets from Segment to Consolidated | Other Information December 31, 2019 December 31, 2018 Total Investments Capital Total Investments Capital assets in affiliates expenditures assets in affiliates expenditures amounts in thousands GCI Holdings $ 3,162,753 585 147,022 3,343,372 719 131,029 Liberty Broadband 12,256,342 12,194,674 500 12,098,437 12,004,376 41 Corporate and other 8,770,692 167,058 1,459 5,317,450 176,311 3,323 24,189,787 12,362,317 148,981 20,759,259 12,181,406 134,393 Eliminate Liberty Broadband (12,256,342 ) (12,194,674 ) (500 ) (12,098,437 ) (12,004,376 ) (41 ) Consolidated $ 11,933,445 167,643 148,481 8,660,822 177,030 134,352 |
Reconciliation of Adjusted OIBDA to Operating Income and Earnings (Loss) from Continuing Operations | The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes: Years ended December 31, 2019 2018 2017 amounts in thousands Adjusted OIBDA $ 235,013 193,101 (25,762 ) Stock‑based compensation (24,897 ) (28,207 ) (26,583 ) Depreciation and amortization (266,333 ) (206,946 ) (3,252 ) Impairment of intangibles and long-lived assets (167,062 ) (207,940 ) — Insurance proceeds and restructuring, net 5,758 — — Operating income (loss) (217,521 ) (249,992 ) (55,597 ) Interest expense (153,803 ) (119,296 ) — Share of earnings (loss) of affiliates, net (2,629 ) 25,772 7,001 Realized and unrealized gains (losses) on financial instruments, net 3,002,400 (681,545 ) 637,164 Tax sharing agreement 26,646 (32,105 ) — Other, net 13,172 205 2,467 Earnings (loss) before income taxes $ 2,668,265 (1,056,961 ) 591,035 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2019 and 2018 : First Quarter Second Quarter Third Quarter Fourth Quarter amounts in thousands, except per share amounts 2019 Revenue $ 217,736 217,566 227,044 232,387 Operating income (loss) $ (32,644 ) (16,253 ) (4,174 ) (164,450 ) Net earnings (loss) $ 678,486 459,044 89,294 711,418 Net earnings (loss) attributable to GCI Liberty, Inc. shareholders $ 678,543 459,044 89,322 711,789 Basic net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ 6.47 4.38 0.85 6.75 Diluted net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ 6.41 4.34 0.84 6.72 2018 (1) Revenue $ 61,204 233,490 210,146 234,922 Operating income (loss) $ (7,369 ) (593 ) (19,869 ) (222,161 ) Net earnings (loss) $ (170,731 ) (303,480 ) 317,256 (716,699 ) Net earnings (loss) attributable to GCI Liberty, Inc. shareholders $ (170,692 ) (303,326 ) 317,383 (716,668 ) Basic net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ (1.58 ) (2.82 ) 2.95 (6.72 ) Diluted net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share $ (1.58 ) (2.82 ) 2.91 (6.72 ) (1) As of March 9, 2018, the Company's financial condition and results of operations include the activities of GCI Holdings, which are further described in notes 1 and 4. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Mar. 09, 2018 | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Affiliated Entity | Liberty Media | ||||
Class of Stock [Line Items] | ||||
Reimbursable expenses | $ 9.7 | $ 8.3 | ||
Gregory B. Maffei | ||||
Class of Stock [Line Items] | ||||
Employment term | 5 years | |||
Liberty Ventures | Series A Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares redemption ratio | 1 | |||
Liberty Ventures | Series B Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares redemption ratio | 1 | |||
Annual Based Salary | Gregory B. Maffei | ||||
Class of Stock [Line Items] | ||||
Related party costs | $ 3 | |||
One-Time Cash Commitment Bonus | Gregory B. Maffei | ||||
Class of Stock [Line Items] | ||||
Related party costs | 5 | |||
Aggregate Annual Target cash Performance Bonus | Gregory B. Maffei | ||||
Class of Stock [Line Items] | ||||
Related party costs | 17 | |||
Aggregate Annual Equity Awards | Gregory B. Maffei | ||||
Class of Stock [Line Items] | ||||
Related party costs | 17.5 | |||
Upfront Award | Gregory B. Maffei | ||||
Class of Stock [Line Items] | ||||
Related party costs | $ 90 | |||
Gregory B. Maffei | Compensation | Affiliated Entity | ||||
Class of Stock [Line Items] | ||||
Expense allocation percent | 14.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Principles (Accounts Receivable and Allowance for Doubtful Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Number of days in allowance used n the calculation (greater than) | 120 days | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 7,555 | $ 0 | $ 1,100 |
Charged to costs and expenses | 10,139 | 8,741 | 0 |
Charged to other accounts | 0 | 0 | 0 |
Write-offs net of recoveries | 4,522 | 1,186 | 1,100 |
Balance at end of year | 13,172 | $ 7,555 | $ 0 |
Trade Accounts Receivable | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at end of year | 7,500 | ||
Other Assets | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at end of year | $ 5,700 |
Summary of Significant Accoun_5
Summary of Significant Accounting Principles (Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 1,337,122 | ||
Property and equipment | $ 1,432,842 | ||
Less accumulated depreciation | 336,691 | 145,321 | |
Less accumulated depreciation on property and equipment under finance leases | 5,250 | 7,195 | |
Property and equipment, net | 1,090,901 | ||
Property and equipment, net | 1,090,901 | 1,184,606 | |
Depreciation expense | 204,200 | 153,500 | $ 200 |
Capitalized interest costs | $ 4,200 | 3,900 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 25 years | ||
Property and equipment | $ 118,973 | 105,525 | |
Telephony transmission equipment and distribution facilities | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 837,966 | 763,957 | |
Telephony transmission equipment and distribution facilities | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 5 years | ||
Telephony transmission equipment and distribution facilities | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 20 years | ||
Cable transmission equipment and distribution facilities | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 120,642 | 100,391 | |
Cable transmission equipment and distribution facilities | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 5 years | ||
Cable transmission equipment and distribution facilities | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 30 years | ||
Support equipment and systems | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 132,854 | 118,230 | |
Support equipment and systems | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 3 years | ||
Support equipment and systems | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 20 years | ||
Customer premise equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 34,202 | 21,351 | |
Customer premise equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 2 years | ||
Customer premise equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 20 years | ||
Fiber optic cable systems | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 53,646 | 53,384 | |
Fiber optic cable systems | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 15 years | ||
Fiber optic cable systems | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 25 years | ||
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 21,478 | 19,381 | |
Other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 5 years | ||
Other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 15 years | ||
Property and equipment under finance leases | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment under finance leases | $ 17,695 | ||
Property and equipment under finance leases | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment under finance leases | 41,084 | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 95,386 | $ 113,819 |
Summary of Significant Accoun_6
Summary of Significant Accounting Principles (Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of period | $ 40,461 | $ 0 |
Liability acquired | 38,686 | |
Liability incurred | 217 | 113 |
Accretion expense | 1,596 | 1,662 |
Liability settled | (74) | 0 |
Balance at end of period | $ 42,200 | $ 40,461 |
Summary of Significant Accoun_7
Summary of Significant Accounting Principles (Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 20 years |
Weighted Average | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 13 years 9 months 18 days |
Internally Used Software | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 3 years |
Internally Used Software | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Principles (Nature of Services and Products) (Details) | 12 Months Ended |
Dec. 31, 2019payment | |
Certain Wireless Devices | |
Disaggregation of Revenue [Line Items] | |
Equipment installment plan period | 24 months |
Trade-In Equipment | |
Disaggregation of Revenue [Line Items] | |
Number of installment plan payments | 12 |
Summary of Significant Accoun_9
Summary of Significant Accounting Principles (Remaining Performance Obligations) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 253.1 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 178.5 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 119.4 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 39.1 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 61.5 |
Revenue, remaining performance obligation, period | 1 year |
Summary of Significant Accou_10
Summary of Significant Accounting Principles (Contract Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Receivables | $ 246.9 | $ 198.8 |
Deferred revenue | $ 41 | $ 31.7 |
Summary of Significant Accou_11
Summary of Significant Accounting Principles (Assets Recognized from the Costs to Obtain a Contract with a Customer) (Details) | Dec. 31, 2019 |
Minimum | |
Capitalized Contract Cost [Line Items] | |
Amortization period | 2 years |
Maximum | |
Capitalized Contract Cost [Line Items] | |
Amortization period | 5 years |
Summary of Significant Accou_12
Summary of Significant Accounting Principles (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 232,387 | $ 227,044 | $ 217,566 | $ 217,736 | $ 234,922 | $ 210,146 | $ 233,490 | $ 61,204 | $ 894,733 | $ 739,762 | $ 23,817 |
Lease, grant, and revenue from subsidies | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 88,946 | 79,672 | |||||||||
GCI Holdings | Consumer Revenue | Wireless | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 118,425 | 94,713 | |||||||||
GCI Holdings | Consumer Revenue | Data | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 169,332 | 130,631 | |||||||||
GCI Holdings | Consumer Revenue | Video | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 83,928 | 72,826 | |||||||||
GCI Holdings | Consumer Revenue | Voice | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 16,479 | 14,792 | |||||||||
GCI Holdings | Business Revenue | Wireless | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 76,795 | 63,481 | |||||||||
GCI Holdings | Business Revenue | Data | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 273,847 | 223,121 | |||||||||
GCI Holdings | Business Revenue | Video | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 16,170 | 16,786 | |||||||||
GCI Holdings | Business Revenue | Voice | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 25,740 | 19,820 | |||||||||
Evite | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 25,071 | $ 23,920 |
Summary of Significant Accou_13
Summary of Significant Accounting Principles (Universal Service Fund) (Details) - USF Program - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revenue support from regulatory agency, percentage | 24.00% | 23.00% |
Receivables net, current | $ 151.2 | $ 91.3 |
Summary of Significant Accou_14
Summary of Significant Accounting Principles (Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Stock-based compensation expense | $ 24,897 | $ 28,207 | $ 26,583 |
Summary of Significant Accou_15
Summary of Significant Accounting Principles (Earnings per Share (EPS)) (Details) - shares | Mar. 09, 2018 | Dec. 31, 2018 | Dec. 31, 2019 |
Accounting Policies [Abstract] | |||
Basic WASO (in shares) | 109,004,250 | 107,924,000 | 105,328,000 |
Potentially dilutive shares (in shares) | 0 | 489,000 | |
Diluted WASO (in shares) | 107,924,000 | 105,817,000 | |
Antidilutive shares excluded from diluted WASO, including potentially dilutive shares, as a result of the Company's net loss attributable to GCI Liberty, Inc. shareholders (in shares) | 1,127,000 | 0 |
Supplemental Disclosures to C_3
Supplemental Disclosures to Consolidated Statements of Cash Flows (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Property and equipment | $ 0 | $ 1,211,392 | $ 0 |
Intangible assets not subject to amortization | 0 | 1,538,544 | 0 |
Intangible assets subject to amortization | 0 | 468,737 | 0 |
Receivables and other assets | 0 | 254,436 | 0 |
Liabilities assumed | 0 | (2,233,177) | 0 |
Deferred tax assets (liabilities) | 0 | (276,683) | 0 |
Fair value of equity consideration | 0 | (1,111,206) | 0 |
Cash and restricted cash paid (received) for acquisitions, net of cash acquired | 0 | (147,957) | 0 |
Cash paid for interest, net of amounts capitalized | 155,977 | 132,103 | 6 |
Non-cash additions for purchases of property and equipment | $ 1,571 | $ 15,916 | $ 0 |
Supplemental Disclosures to C_4
Supplemental Disclosures to Consolidated Statements of Cash Flows (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 569,520 | $ 491,257 | $ 573,210 | |
Restricted cash included in other current assets | 6,630 | 775 | 938 | |
Total cash and cash equivalents and restricted cash at end of period | $ 576,150 | $ 492,032 | $ 574,148 | $ 488,127 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ in Thousands | Mar. 09, 2018 | Dec. 31, 2018 |
GCI Liberty Inc | ||
Business Acquisition [Line Items] | ||
Net earnings (loss) from continuing operations | $ 307,900 | |
GCI Liberty Inc | HoldCo | ||
Business Acquisition [Line Items] | ||
Acquisition price | $ 1,100,000 | |
Intangible assets subject to amortization | 468,737 | |
Acquired goodwill deductible for income tax purposes | $ 170,000 | |
GCI Liberty Inc | HoldCo | Tradename | ||
Business Acquisition [Line Items] | ||
Estimated useful life | 10 years | |
GCI Liberty Inc | HoldCo | Customer relationships | ||
Business Acquisition [Line Items] | ||
Weighted average useful life | 16 years | |
GCI Liberty Inc | HoldCo | Right-to-use | ||
Business Acquisition [Line Items] | ||
Weighted average useful life | 8 years |
Acquisition (Preliminary Purcha
Acquisition (Preliminary Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 09, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 855,837 | $ 855,837 | $ 25,569 | |
HoldCo | GCI Liberty Inc | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents including restricted cash | $ 147,957 | |||
Receivables | 171,014 | |||
Property and equipment | 1,211,392 | |||
Goodwill | 966,044 | |||
Intangible assets not subject to amortization | 572,500 | |||
Intangible assets subject to amortization | 468,737 | |||
Other assets | 83,422 | |||
Deferred revenue | (92,561) | |||
Debt, including capital leases | (1,707,002) | |||
Other liabilities | (251,692) | |||
Deferred income tax liabilities | (276,683) | |||
Preferred stock | (174,922) | |||
Non-controlling interest | (7,000) | |||
Net assets acquired including goodwill, less noncontrolling interest | $ 1,111,206 |
Acquisition (Pro Forma Revenue
Acquisition (Pro Forma Revenue and Net Earnings) (Details) - HoldCo - GCI Liberty Inc - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenue | $ 899,210 | $ 918,726 |
Net earnings (loss) | (872,306) | 713,377 |
Net earnings (loss) attributable to GCI Liberty shareholders | $ (871,839) | $ 713,882 |
Basic net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share (in dollars per share) | $ (8.08) | $ 6.55 |
Diluted net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share (in dollars per share) | $ (8.08) | $ 6.55 |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 533,484 | $ 384,071 |
Equity securities | 2,600,008 | 1,529,901 |
Investment in Liberty Broadband | 5,367,242 | 3,074,373 |
Derivative instrument liability | 71,305 | 20,340 |
Indemnification obligation | 202,086 | 78,522 |
Exchangeable senior debentures | 658,839 | 462,336 |
Exchangeable senior debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Exchangeable senior debentures | 658,839 | 462,336 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 533,484 | 384,071 |
Equity securities | 2,600,008 | 1,529,901 |
Investment in Liberty Broadband | 5,367,242 | 3,074,373 |
Derivative instrument liability | 0 | 0 |
Indemnification obligation | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Exchangeable senior debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Exchangeable senior debentures | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Equity securities | 0 | 0 |
Investment in Liberty Broadband | 0 | 0 |
Derivative instrument liability | 71,305 | 20,340 |
Indemnification obligation | 202,086 | 78,522 |
Significant other observable inputs (Level 2) | Exchangeable senior debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Exchangeable senior debentures | $ 658,839 | $ 462,336 |
Assets and Liabilities Measur_4
Assets and Liabilities Measured at Fair Value (Narrative) (Details) $ / shares in Units, $ in Thousands | Apr. 29, 2019$ / shares$ / unitshares | Jun. 06, 2017$ / shares$ / unitshares | Jun. 30, 2018USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Indemnification payment | $ | $ 0 | $ 132,725 | $ 0 | |||
Exchangeable Senior Debentures | 1.75% Exchangeable Debentures | Indemnification obligation | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Indemnity obligation recorded | $ | $ 281,300 | |||||
Exchangeable Senior Debentures | 1.75% Exchangeable Debentures | Indemnification obligation | LI LLC | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Interest rate | 1.75% | |||||
Exchangeable instrument, shares outstanding (in shares) | shares | 332,241 | |||||
Exchangeable Senior Debentures | 1.75% Exchangeable Debentures | Indemnification obligation | LI LLC | Qurate Retail | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Number of shares repurchased (in shares) | shares | 417,759 | |||||
Value of shares repurchased | $ | $ 457,000 | |||||
Indemnification payment | $ | $ 132,700 | |||||
LendingTree | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Number of shares purchased (in shares) | shares | 450,000 | |||||
Variable forward contract, term | 3 years | 2 years | ||||
Variable forward contract (in shares) | shares | 642,850 | 642,850 | ||||
Variable forward contract, closing price (in dollars per share) | $ / shares | $ 376.35 | $ 170.70 | ||||
Variable forward contract, floor price (in dollars per share) | $ / unit | 0 | 128.03 | ||||
Variable forward contract, cap price (in dollars per share) | $ / unit | 254 | 211.67 |
Assets and Liabilities Measur_5
Assets and Liabilities Measured at Fair Value (Schedule of Realized and Unrealized Gains (Losses)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |||
Equity securities | $ 1,074,736 | $ (274,393) | $ 258,629 |
Investment in Liberty Broadband | 2,292,869 | (560,413) | 473,342 |
Derivative instruments | (50,965) | 75,970 | (94,807) |
Indemnification obligation | (123,564) | 70,007 | |
Exchangeable senior debentures | (190,676) | 7,284 | |
Realized and unrealized gains (losses) on financial instruments, net | $ 3,002,400 | $ (681,545) | $ 637,164 |
Investments in Equity Securit_3
Investments in Equity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in equity securities | $ 2,605,293 | $ 1,533,517 |
Charter | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in equity securities | 2,599,253 | 1,526,984 |
Other investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in equity securities | $ 6,040 | $ 6,533 |
Investments in Affiliates Acc_3
Investments in Affiliates Accounted for Using the Equity Method (Investment in Lending Tree) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Carrying amount | $ 167,643 | $ 177,030 | |
Share of earnings (losses) of affiliates | $ (2,629) | 25,772 | $ 7,001 |
LendingTree | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage ownership | 26.50% | ||
Market value | $ 1,045,044 | ||
Carrying amount | 166,465 | 174,002 | |
Share of earnings (losses) of affiliates | (1,600) | 21,100 | $ 7,000 |
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying amount | $ 1,178 | $ 3,028 |
Investments in Affiliates Acc_4
Investments in Affiliates Accounted for Using the Equity Method (Investment in Liberty Broadband) (Details) $ / shares in Units, $ in Thousands | May 18, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 31, 2015$ / shares |
Schedule of Equity Method Investments [Line Items] | ||||
Investment in affiliates | $ 167,643 | $ 177,030 | ||
Series A Common Stock | Charter | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Share exchange ratio | 1 | |||
Liberty Broadband | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in affiliates | $ 5,367,242 | 3,074,373 | ||
Percentage ownership | 23.50% | |||
Liberty Broadband | Series C Preferred Stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in affiliates | $ 2,400,000 | |||
Liberty Broadband | Series C Common Stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Share price (in dollars per share) | $ / shares | $ 56.23 | |||
Charter | Liberty Broadband | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in affiliates | $ 12,194,674 | $ 12,004,376 | ||
Acquisition of interest in investments | $ 5,000,000 |
Investments in Affiliates Acc_5
Investments in Affiliates Accounted for Using the Equity Method (Summary of Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in Charter, accounted for using the equity method | $ 167,643 | $ 177,030 | |
Realized and unrealized gains (losses) on financial instruments, net | 3,002,400 | (681,545) | $ 637,164 |
Liberty Broadband | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 52,133 | 84,574 | |
Other assets | 9,535 | 9,487 | |
Total assets | 12,256,342 | 12,098,437 | |
Long-term debt | 572,944 | 522,928 | |
Deferred income tax liabilities | 999,757 | 965,829 | |
Other liabilities | 15,695 | 11,062 | |
Equity | 10,667,946 | 10,598,618 | |
Total liabilities and shareholders' equity | 12,256,342 | 12,098,437 | |
Revenue | 14,859 | 22,256 | 13,092 |
Operating expenses, net | (44,136) | (34,270) | (38,570) |
Operating income (loss) | (29,277) | (12,014) | (25,478) |
Share of earnings (losses) of affiliates | 286,401 | 166,146 | 2,508,991 |
Gain (loss) on dilution of investment in affiliate | (79,329) | (43,575) | (17,872) |
Realized and unrealized gains (losses) on financial instruments, net | 1,170 | 3,659 | 3,098 |
Other income (expense), net | (23,807) | (22,339) | (18,139) |
Income tax benefit (expense) | (37,942) | (21,924) | (416,933) |
Net earnings (loss) | 117,216 | 69,953 | $ 2,033,667 |
Liberty Broadband | Charter | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in Charter, accounted for using the equity method | $ 12,194,674 | $ 12,004,376 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 855,837 | $ 25,569 |
Acquisitions | 966,044 | |
Impairment | 0 | (135,776) |
Balance at end of period | 855,837 | 855,837 |
GCI Holdings | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 830,268 | 0 |
Acquisitions | 966,044 | |
Impairment | 0 | (135,776) |
Balance at end of period | 830,268 | 830,268 |
Corporate and other | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 25,569 | 25,569 |
Acquisitions | 0 | |
Impairment | 0 | 0 |
Balance at end of period | $ 25,569 | $ 25,569 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Intangible Assets Subject to Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 547,988 | $ 531,026 |
Accumulated amortization | (156,009) | (95,020) |
Net carrying amount | 391,979 | 436,006 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 408,267 | 408,267 |
Accumulated amortization | (95,167) | (55,417) |
Net carrying amount | 313,100 | 352,850 |
Other amortizable intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 139,721 | 122,759 |
Accumulated amortization | (60,842) | (39,603) |
Net carrying amount | $ 78,879 | $ 83,156 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (5 Year Future Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 62,100 | $ 53,500 |
Years ending December 31, | ||
2020 | 53,961 | |
2021 | 43,720 | |
2022 | 37,558 | |
2023 | 34,178 | |
2024 | $ 30,490 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Goodwill And Intangible Assets [Line Items] | ||
Goodwill impairment | $ 0 | $ 135,776 |
Corporate and other | ||
Schedule of Goodwill And Intangible Assets [Line Items] | ||
Goodwill impairment | 0 | 0 |
Accumulated goodwill impairment losses | 55,700 | |
GCI Holdings | ||
Schedule of Goodwill And Intangible Assets [Line Items] | ||
Goodwill impairment | 135,800 | |
Accumulated goodwill impairment losses | 135,800 | |
GCI Holdings | Wireless License | ||
Schedule of Goodwill And Intangible Assets [Line Items] | ||
Impairment loss on indefinite-lived intangibles | $ 157,000 | |
GCI Holdings | Cable certificates | ||
Schedule of Goodwill And Intangible Assets [Line Items] | ||
Impairment loss on indefinite-lived intangibles | $ 65,000 |
Debt (Summary of Debt) (Details
Debt (Summary of Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Outstanding principal | $ 3,071,982 | |
Carrying value | 3,071,982 | |
Deferred financing costs | (8,491) | $ (2,267) |
Total debt | 3,266,218 | 2,886,034 |
Debt classified as current, net of deferred financing costs | (3,008) | (900,759) |
Total long-term debt | 3,263,210 | 1,985,275 |
Margin Loan Facility | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 1,300,000 | |
Carrying value | 1,300,000 | 900,000 |
Exchangeable senior debentures | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 477,250 | |
Carrying value | 658,839 | 462,336 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 775,000 | |
Carrying value | 796,138 | 803,287 |
Senior credit facility | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 512,666 | |
Carrying value | 512,666 | 715,124 |
Wells Fargo note payable | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 7,066 | |
Carrying value | $ 7,066 | $ 7,554 |
Debt (Margin Loan) (Details)
Debt (Margin Loan) (Details) - USD ($) | Dec. 31, 2019 | Dec. 27, 2019 | Mar. 09, 2018 | Dec. 29, 2017 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 25, 2019 | Oct. 05, 2018 |
Line of Credit Facility [Line Items] | ||||||||||
Distributions to Qurate Retail | $ (1,300,000,000) | $ 1,122,272,000 | $ 146,680,000 | |||||||
Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit, outstanding balance | $ 100,000,000 | |||||||||
Broadband Holdco, LLC | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit, outstanding balance | $ 200,000,000 | |||||||||
Broadband Holdco, LLC | Term Loan Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit, outstanding balance | 800,000,000 | 800,000,000 | ||||||||
Broadband Holdco, LLC | LIBOR | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.85% | |||||||||
Broadband Holdco, LLC | Series C Common Stock | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Number of shares pledged as collateral (in shares) | 42,681,842 | 42,681,842 | ||||||||
Amount of collateral pledged | $ 5,400,000,000 | $ 5,400,000,000 | ||||||||
Broadband Holdco, LLC | Margin Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit availability (up to) | $ 1,000,000,000 | |||||||||
Term of debt | 2 years | |||||||||
Undrawn commitment fee (up to) | 1.00% | |||||||||
Line of credit, outstanding balance | $ 1,300,000,000 | $ 1,300,000,000 | ||||||||
Broadband Holdco, LLC | Margin Loan | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit availability (up to) | $ 200,000,000 | |||||||||
Repayments of credit facility | $ 100,000,000 | |||||||||
Proceeds from lines of credit | $ 100,000,000 | |||||||||
Broadband Holdco, LLC | Margin Loan | Delayed Draw Term Loan Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit availability (up to) | $ 300,000,000 | |||||||||
Proceeds from lines of credit | $ 300,000,000 | |||||||||
Broadband Holdco, LLC | Margin Loan | LIBOR | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.85% | |||||||||
Qurate Retail | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Distributions to Qurate Retail | $ 1,100,000,000 |
Debt (Exchangeable Senior Deben
Debt (Exchangeable Senior Debentures) (Details) - Charter - Exchangeable Senior Debentures - 1.75% Exchangeable Debentures | Jun. 18, 2018$ / sharesshares |
Debt Instrument [Line Items] | |
Interest rate | 1.75% |
Exchangeable ratio | 2.6989 |
Exchangeable price (in dollars per share) | $ / shares | $ 370.52 |
Number of shares exchangeable (in shares) | shares | 1,288,051 |
Redemption price (as a percent) | 100.00% |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) - USD ($) | Dec. 31, 2019 | Jun. 06, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Face amount of debt | $ 3,071,982,000 | ||
Long-term debt | 3,266,218,000 | $ 2,886,034,000 | |
Senior notes | |||
Debt Instrument [Line Items] | |||
Face amount of debt | 775,000,000 | ||
Aggregate unamortized premium | $ 21,100,000 | ||
Senior notes | 2024 Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 325,000,000 | ||
Interest rate | 6.625% | ||
Senior notes | 2021 Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 325,000,000 | ||
Interest rate | 6.75% | ||
Senior notes | 2025 Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.875% |
Debt (Senior Credit Facility) (
Debt (Senior Credit Facility) (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | Nov. 25, 2019USD ($) | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit, outstanding balance | $ 100,000,000 | |
Term Loan | Term Loan B | ||
Line of Credit Facility [Line Items] | ||
Line of credit availability | $ 240,700,000 | |
Basis spread on variable rate (as a percent) | 2.25% | |
Principal payments, a percentage of the original principal amount | 0.25% | |
Line of credit, outstanding balance | $ 237,700,000 | |
Term Loan | Term Loan A | ||
Line of Credit Facility [Line Items] | ||
Total leverage ratio | 6.50 | |
Secured leverage ratio | 4 | |
Senior credit facility | ||
Line of Credit Facility [Line Items] | ||
Remainder amount available for borrowing | $ 266,900,000 | |
Senior credit facility | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit availability | 550,000,000 | |
Line of credit, outstanding balance | $ 275,000,000 | |
Senior credit facility | Revolving Credit Facility | LIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.50% | |
Senior credit facility | Revolving Credit Facility | LIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.75% | |
Senior credit facility | Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit, outstanding balance | $ 8,100,000 |
Debt (Wells Fargo Note Payable)
Debt (Wells Fargo Note Payable) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Wells Fargo note payable | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 2.25% |
Debt (Five Year Maturities) (De
Debt (Five Year Maturities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 3,008 |
2021 | 1,578,031 |
2022 | 233,344 |
2023 | 477,871 |
2024 | 325,646 |
2025 and thereafter | 454,082 |
Total debt | $ 3,071,982 |
Debt (Fair Value of Debt) (Deta
Debt (Fair Value of Debt) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Senior notes | |
Debt Instrument [Line Items] | |
Fair value of debt | $ 824.8 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets, net | $ 123,831 | $ 107,300 | |
Short-term operating lease liabilities | 39,756 | 28,000 | |
Operating lease liabilities | 80,811 | $ 79,300 | |
Reduction in finance lease liability | 22,500 | ||
Gain on lease modification | $ 6,500 | ||
Depreciation expense on finance leases | $ 7,200 | ||
Operating expense on finance leases | $ 46,700 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term (in years) | 1 year | ||
Operating lease, renewal term | 3 years | ||
Termination period | 30 days | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term (in years) | 31 years | ||
Operating lease, renewal term | 39 years | ||
Termination period | 18 years | ||
Assets Held Under Finance Leases | |||
Lessee, Lease, Description [Line Items] | |||
Reduction in fixed assets | $ 16,000 |
Leases (Lease Expense) (Details
Leases (Lease Expense) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 48,481 |
Finance lease cost | |
Depreciation of leased assets | 4,997 |
Interest on lease liabilities | 1,196 |
Total finance lease cost | $ 6,193 |
Leases (Weighted Average Term a
Leases (Weighted Average Term and Discount Rate) (Details) | Dec. 31, 2019 |
Weighted-average remaining lease term (years): | |
Finance leases | 3 years 6 months |
Operating leases | 4 years 10 months 24 days |
Weighted-average discount rate: | |
Finance leases | 5.10% |
Operating leases | 5.00% |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating leases: | |||
Operating lease ROU assets, net | $ 123,831 | $ 107,300 | |
Current operating lease liabilities | 39,756 | 28,000 | |
Operating lease liabilities | 80,811 | $ 79,300 | |
Total operating lease liabilities | 120,567 | ||
Finance Leases: | |||
Property and equipment, at cost | 17,695 | ||
Accumulated depreciation | (5,250) | $ (7,195) | |
Property and equipment, net | 12,445 | ||
Current obligations under finance leases | 4,640 | ||
Obligations under finance leases | 7,281 | ||
Total finance lease liabilities | $ 11,921 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 46,192 |
Operating cash flows from finance leases | 1,141 |
Financing cash flows from finance leases | 7,717 |
ROU assets obtained in exchange for lease obligations | |
Operating leases | 39,515 |
Finance leases | $ 0 |
Leases (Future Lease Payments)
Leases (Future Lease Payments) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finance Leases | |
2020 | $ 5,159 |
2021 | 3,981 |
2022 | 1,973 |
2023 | 678 |
2024 | 688 |
Thereafter | 1,046 |
Total lease payments | 13,525 |
Less: imputed interest | (1,604) |
Total lease liabilities | 11,921 |
Operating Leases | |
2020 | 45,013 |
2021 | 35,862 |
2022 | 22,120 |
2023 | 14,855 |
2024 | 5,574 |
Thereafter | 19,192 |
Total lease payments | 142,616 |
Less: imputed interest | (22,049) |
Total lease liabilities | 120,567 |
Tower Obligations | |
2020 | 7,797 |
2021 | 7,953 |
2022 | 8,112 |
2023 | 8,274 |
2024 | 8,439 |
Thereafter | 134,395 |
Total lease payments | 174,970 |
Less: imputed interest | (83,581) |
Total lease liabilities | $ 91,389 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Mar. 09, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
Contributions from Qurate Retail | $ 1,300,000 | $ (1,122,272) | $ (146,680) | |
Increase in valuation allowance | $ 40 | |||
Change in valuation allowance affecting tax expense | 40 | $ 189 | $ 384 | |
Carryforwards | 179,500 | |||
Carryforwards with no expiration | 63,700 | |||
Carryforwards subject to expiration | 115,800 | |||
Carryforwards that may expire if unused | $ 1,400 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Benefit (Expense)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (30) | $ 607 | $ 0 |
State and local | (23) | (24) | 0 |
Current income tax benefit (expense) | (53) | 583 | 0 |
Deferred: | |||
Federal | (542,259) | 190,931 | 160,150 |
State and local | (187,711) | (8,207) | (26,628) |
Deferred tax benefit (expense) | (729,970) | 182,724 | 133,522 |
Income tax benefit (expense) | $ (730,023) | $ 183,307 | $ 133,522 |
Income Taxes (Statutory Tax Rat
Income Taxes (Statutory Tax Rate Impact on Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Computed expected tax benefit (expense) | $ (560,336) | $ 221,962 | $ (206,862) |
State and local income taxes, net of federal income taxes | (158,349) | 74,105 | (17,001) |
Nontaxable equity contribution | (20,353) | 7,960 | 0 |
Executive compensation | (2,437) | (7,114) | 0 |
Change in state tax rate due to acquisition | 0 | (117,496) | 0 |
Change in state tax rate | 10,078 | 37,073 | 0 |
Change in tax rate due to Tax Act | 0 | 0 | 347,979 |
Deductible stock compensation | 3,394 | (131) | 14,116 |
Goodwill impairment | 0 | (28,513) | 0 |
Change in valuation allowance affecting tax expense | (40) | (189) | (384) |
Other, net | (1,980) | (4,350) | (4,326) |
Income tax benefit (expense) | $ (730,023) | $ 183,307 | $ 133,522 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Loss and capital carryforwards | $ 179,473 | $ 153,931 |
Deferred revenue | 20,026 | 23,716 |
Accrued stock compensation | 3,889 | 3,598 |
Debt | 44,843 | 6,209 |
Operating lease liability | 33,656 | |
Other accrued liabilities | 9,578 | 20,108 |
Other future deductible amounts | 35,489 | 19,189 |
Deferred tax assets | 326,954 | 226,751 |
Valuation allowance | (1,366) | (1,326) |
Net deferred tax assets | 325,588 | 225,425 |
Deferred tax liabilities | ||
Investments | 1,439,140 | 573,016 |
Fixed assets | 209,094 | 232,899 |
Intangible assets | 169,834 | 213,206 |
Operating lease ROU assets | 34,629 | |
Deferred tax liabilities | 1,852,697 | 1,019,121 |
Net deferred tax liabilities | $ 1,527,109 | $ 793,696 |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock) (Details) | Jan. 15, 2020$ / shares | Dec. 06, 2019$ / shares | Oct. 15, 2019$ / shares | Jul. 15, 2019$ / shares | Apr. 15, 2019$ / shares | Jan. 15, 2019$ / shares | Jul. 16, 2018 | Mar. 08, 2018period$ / shares | Dec. 31, 2019shares |
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | shares | 42,500,000 | ||||||||
Liquidation price per share (in dollars per share) | $ / shares | $ 25 | ||||||||
Dividend rate | 7.00% | 5.00% | |||||||
Failure to pay cash dividends, number of periods | period | 4 | ||||||||
Potential increase in dividend rate, over four dividend periods | 2.00% | ||||||||
Preferred stock, dividends paid per share (in dollars per share) | $ / shares | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.44 | |||||
Preferred stock, dividends declared per share (in dollars per share) | $ / shares | $ 0.44 | ||||||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, dividends paid per share (in dollars per share) | $ / shares | $ 0.44 | ||||||||
Series A Cumulative Redeemable Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | shares | 7,500,000 | ||||||||
Preferred stock, shares issued (in shares) | shares | 7,202,917 | ||||||||
Preferred stock, shares outstanding (in shares) | shares | 7,202,917 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock) (Details) | 12 Months Ended |
Dec. 31, 2019vote | |
Series A Common Stock | |
Class of Stock [Line Items] | |
Common stock, voting rights, number of votes | 1 |
Stock conversion ratio | 1 |
Series B Common Stock | |
Class of Stock [Line Items] | |
Common stock, voting rights, number of votes | 10 |
Stockholders' Equity (Purchases
Stockholders' Equity (Purchases of Common Stock) (Details) - Stock Buyback Program - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||
Number of shares repurchased | 1,006,243 | 2,397,710 |
Series A Common Stock | ||
Class of Stock [Line Items] | ||
Value of stock repurchased | $ 43.9 | $ 111.6 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | |||
Restricted cash included in other current assets | $ 6,630 | $ 775 | $ 938 |
Agreed indemnification for loss or recapture of NMTC | 12,500 | ||
Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Restricted cash included in other current assets | 6,600 | 800 | |
Assets | 32,000 | 89,000 | |
Liabilities | $ 21,800 | $ 63,000 |
Variable Interest Entities (Sum
Variable Interest Entities (Summary of Key Terms of NMTC Transactions) (Details) - Primary Beneficiary - USD ($) $ in Millions | Oct. 02, 2019 | Dec. 22, 2017 | Mar. 21, 2017 |
Variable Interest Entity [Line Items] | |||
Loan Amount | $ 4.8 | $ 10.4 | $ 6.7 |
Interest Rate on Loan | 1.00% | 1.00% | 1.00% |
US Bancorp Investment | |||
Variable Interest Entity [Line Items] | |||
Financial support to other entity | $ 2.2 | $ 5.1 | $ 3.3 |
Loan to Unicom | |||
Variable Interest Entity [Line Items] | |||
Interest Rate on Loan | 1.80% | 0.70% | |
Financial support to other entity | $ 6.7 | $ 14.7 | $ 9.8 |
Loan to Unicom | Minimum | |||
Variable Interest Entity [Line Items] | |||
Interest Rate on Loan | 0.70% | ||
Loan to Unicom | Maximum | |||
Variable Interest Entity [Line Items] | |||
Interest Rate on Loan | 1.20% |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Plan) (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
Award term | 7 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 5 years |
Award term | 10 years |
2018 Omnibus Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum number of shares authorized (in shares) | 8,000,000 |
Stock-Based Compensation (Grant
Stock-Based Compensation (Grants of Stock Options) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised, intrinsic value | $ 20,900 | $ 800 | $ 71,900 | |
Stock-based compensation expense | $ 24,897 | $ 28,207 | $ 26,583 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years | |||
Series A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 57 | |||
Series A Common Stock | Directors and Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 57 | |||
Series A Common Stock | Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 10 | |||
Weighted average GDFV of options granted (in dollars per share) | $ 18.71 | $ 14.09 | ||
LVNTA shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 946 | |||
Weighted average GDFV of options granted (in dollars per share) | $ 8.53 | |||
LVNTA shares | Directors and Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 188 | |||
LVNTA shares | Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average GDFV of options granted (in dollars per share) | $ 16.52 | |||
Series B Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 22 | |||
Series B Common Stock | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 22 | |||
Weighted average GDFV of options granted (in dollars per share) | $ 18.27 | |||
LVNTB shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 1,100 | |||
Weighted average GDFV of options granted (in dollars per share) | $ 6.94 | |||
LVNTB shares | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 143 | 269 | ||
Weighted average GDFV of options granted (in dollars per share) | $ 16.55 | $ 15.41 | ||
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to unvested options | $ 2,500 | |||
Volatility rate, minimum | 24.80% | 25.90% | 25.90% | |
Volatility rate, maximum | 31.60% | 31.60% | 31.60% | |
Dividend rate | 0.00% | |||
Options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 2 years | 2 years | 2 years | |
Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 6 years 4 months 24 days | 6 years 4 months 24 days | 6 years 4 months 24 days | |
Options | Series A Common Stock | Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | 1 year | 1 year | |
Options | LVNTA shares | Employees | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | 3 years | ||
Options | LVNTA shares | Employees | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years | 5 years | ||
Options | LVNTA and LVNTB shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 9,200 | |||
Performance RSUs | Series B Common Stock | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 51 | |||
Weighted average GDFV of options granted (in dollars per share) | $ 53.78 | |||
Award vesting period | 1 year | |||
Eligible Options | LVNTA and LVNTB shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised, intrinsic value | $ 13,500 | |||
Unvested New Options | LVNTA and LVNTB shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6,400 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Outstanding Awards) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Series A | |
Awards | |
Outstanding at beginning of period (in shares) | shares | 1,650 |
Granted (in shares) | shares | 57 |
Exercised (in shares) | shares | (1,054) |
Forfeited/Cancelled (in shares) | shares | (49) |
Outstanding at end of period (in shares) | shares | 604 |
Exercisable at end of period (in shares) | shares | 403 |
WAEP | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 47.61 |
Granted (in dollars per share) | $ / shares | 71.09 |
Exercised (in dollars per share) | $ / shares | 47.49 |
Forfeited/Cancelled (in dollars per share) | $ / shares | 55.65 |
Outstanding at end of period (in dollars per share) | $ / shares | 48.67 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 46.75 |
Weighted average remaining life | |
Outstanding at end of period | 4 years 4 months 24 days |
Exercisable at end of period | 4 years 2 months 12 days |
Aggregate intrinsic value | |
Outstanding at end of period | $ | $ 13 |
Exercisable at end of period | $ | $ 10 |
Series B | |
Awards | |
Outstanding at beginning of period (in shares) | shares | 1,223 |
Granted (in shares) | shares | 22 |
Exercised (in shares) | shares | 0 |
Forfeited/Cancelled (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 1,245 |
Exercisable at end of period (in shares) | shares | 1,245 |
WAEP | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 56.10 |
Granted (in dollars per share) | $ / shares | 58.11 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited/Cancelled (in dollars per share) | $ / shares | 0 |
Outstanding at end of period (in dollars per share) | $ / shares | 56.14 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 56.14 |
Weighted average remaining life | |
Outstanding at end of period | 3 years 1 month 6 days |
Exercisable at end of period | 3 years 1 month 6 days |
Aggregate intrinsic value | |
Outstanding at end of period | $ | $ 22 |
Exercisable at end of period | $ | $ 22 |
Stock-Based Compensation (Outst
Stock-Based Compensation (Outstanding Awards) (Details) shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Series A Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance upon exercise (in shares) | shares | 600 |
Series B Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance upon exercise (in shares) | shares | 1,200 |
Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested options | $ | $ 2.5 |
Weighted average period for compensation cost to be recognized | 1 year 7 months 6 days |
RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested restricted shares | $ | $ 18.2 |
Weighted average period for compensation cost to be recognized | 2 years 6 months |
Stock-Based Compensation (Exerc
Stock-Based Compensation (Exercises) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised, intrinsic value | $ 20.9 | $ 0.8 | $ 71.9 |
Option Exchange | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised, intrinsic value | $ 56.3 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Shares) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average GDFV of unvested shares (in dollars per share) | $ 48.22 | ||
Aggregate fair value of all restricted shares | $ 17.2 | $ 21.9 | $ 2.3 |
RSAs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested restricted stock (in shares) | 748 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested restricted stock (in shares) | 83 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Cash contributions | $ 10.6 | $ 11 | $ 0.2 |
Commitments and Contingencies (
Commitments and Contingencies (Rural Health Care Program) (Details) | Oct. 10, 2018USD ($) | Nov. 30, 2017contract | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 19, 2020USD ($) |
Loss Contingencies [Line Items] | ||||||||||||||||
Net accounts receivables | $ 246,900,000 | $ 198,800,000 | $ 246,900,000 | $ 198,800,000 | ||||||||||||
Accounts and other receivables, net, current | 114,435,000 | 182,600,000 | 114,435,000 | 182,600,000 | ||||||||||||
Revenue from contract | 232,387,000 | $ 227,044,000 | $ 217,566,000 | $ 217,736,000 | $ 234,922,000 | $ 210,146,000 | $ 233,490,000 | $ 61,204,000 | $ 894,733,000 | $ 739,762,000 | $ 23,817,000 | |||||
RHC Customers | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Loss on contracts | $ 17,000,000 | |||||||||||||||
GCI Holdings | Reduction in Rural Rates Charged to RHC Customers | RHC Customers | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Reduction in rural rates (as a percent) | 26.00% | |||||||||||||||
Reduction in program support payment | $ 27,800,000 | |||||||||||||||
Reduction in receivables | 19,100,000 | |||||||||||||||
Revenues | $ 8,600,000 | |||||||||||||||
Expected reduction in program revenue | $ 7,000,000 | |||||||||||||||
Number of service contracts | contract | 2 | |||||||||||||||
GCI Holdings | Customer | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Number of contracts | 2 | 2 | ||||||||||||||
Accounts and other receivables, net, current | $ 21,300,000 | $ 21,300,000 | $ 21,300,000 | |||||||||||||
Revenue from contract | 12,000,000 | |||||||||||||||
Subsequent Event | GCI Holdings | Customer | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Accounts and other receivables, net, current | $ 21,300,000 | |||||||||||||||
Subsequent Event | Forecast | GCI Holdings | Reduction in Rural Rates Charged to RHC Customers | RHC Customers | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Expected reduction in program revenue | $ 8,000,000 | |||||||||||||||
Other Assets | RHC Customers | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Net accounts receivables | 118,800,000 | 118,800,000 | ||||||||||||||
Trade Accounts Receivable | RHC Customers | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Net accounts receivables | 12,000,000 | 12,000,000 | ||||||||||||||
Minimum | RHC Customers | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Additional loss on contract | 0 | 0 | ||||||||||||||
Maximum | RHC Customers | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Additional loss on contract | $ 44,000,000 | $ 44,000,000 |
Information About the Company_3
Information About the Company's Operating Segments (Performance Measures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 232,387 | $ 227,044 | $ 217,566 | $ 217,736 | $ 234,922 | $ 210,146 | $ 233,490 | $ 61,204 | $ 894,733 | $ 739,762 | $ 23,817 |
Adjusted OIBDA | 235,013 | 193,101 | (25,762) | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 909,592 | 762,018 | 36,909 | ||||||||
Adjusted OIBDA | 218,122 | 189,573 | (42,178) | ||||||||
Operating Segments | GCI Holdings | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 869,662 | 715,842 | 0 | ||||||||
Adjusted OIBDA | 256,878 | 217,832 | 0 | ||||||||
Operating Segments | Liberty Broadband | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 14,859 | 22,256 | 13,092 | ||||||||
Adjusted OIBDA | (16,891) | (3,528) | (16,416) | ||||||||
Operating Segments | Corporate and other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 23,817 | ||||||||||
Adjusted OIBDA | (21,865) | (24,731) | (25,762) | ||||||||
Consolidation, Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (14,859) | (22,256) | (13,092) | ||||||||
Adjusted OIBDA | $ 16,891 | $ 3,528 | $ 16,416 |
Information About the Company_4
Information About the Company's Operating Segments (Other Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 11,933,445 | $ 8,660,822 |
Investment in affiliates | 167,643 | 177,030 |
Capital expenditures | 148,481 | 134,352 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 24,189,787 | 20,759,259 |
Investment in affiliates | 12,362,317 | 12,181,406 |
Capital expenditures | 148,981 | 134,393 |
Operating Segments | GCI Holdings | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,162,753 | 3,343,372 |
Investment in affiliates | 585 | 719 |
Capital expenditures | 147,022 | 131,029 |
Operating Segments | Liberty Broadband | ||
Segment Reporting Information [Line Items] | ||
Total assets | 12,256,342 | 12,098,437 |
Investment in affiliates | 12,194,674 | 12,004,376 |
Capital expenditures | 500 | 41 |
Operating Segments | Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 8,770,692 | 5,317,450 |
Investment in affiliates | 167,058 | 176,311 |
Capital expenditures | 1,459 | 3,323 |
Consolidation, Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | (12,256,342) | (12,098,437) |
Investment in affiliates | (12,194,674) | (12,004,376) |
Capital expenditures | $ (500) | $ (41) |
Information About the Company_5
Information About the Company's Operating Segments (Reconciliation of Segment Adjusted OIBDA to Operating Income and Earnings (Loss) from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||||||||
Adjusted OIBDA | $ 235,013 | $ 193,101 | $ (25,762) | ||||||||
Stock‑based compensation | (24,897) | (28,207) | (26,583) | ||||||||
Depreciation and amortization | (266,333) | (206,946) | (3,252) | ||||||||
Impairment of intangibles and long-lived assets | (167,062) | (207,940) | 0 | ||||||||
Insurance proceeds and restructuring, net | 5,758 | 0 | 0 | ||||||||
Operating income (loss) | $ (164,450) | $ (4,174) | $ (16,253) | $ (32,644) | $ (222,161) | $ (19,869) | $ (593) | $ (7,369) | (217,521) | (249,992) | (55,597) |
Interest expense | (153,803) | (119,296) | 0 | ||||||||
Share of earnings (loss) of affiliates, net | (2,629) | 25,772 | 7,001 | ||||||||
Realized and unrealized gains (losses) on financial instruments, net (note 5) | 3,002,400 | (681,545) | 637,164 | ||||||||
Tax sharing agreement | 26,646 | (32,105) | 0 | ||||||||
Other, net | 13,172 | 205 | 2,467 | ||||||||
Earnings (loss) before income taxes | $ 2,668,265 | $ (1,056,961) | $ 591,035 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 232,387 | $ 227,044 | $ 217,566 | $ 217,736 | $ 234,922 | $ 210,146 | $ 233,490 | $ 61,204 | $ 894,733 | $ 739,762 | $ 23,817 |
Operating income (loss) | (164,450) | (4,174) | (16,253) | (32,644) | (222,161) | (19,869) | (593) | (7,369) | (217,521) | (249,992) | (55,597) |
Net earnings (loss) | 711,418 | 89,294 | 459,044 | 678,486 | (716,699) | 317,256 | (303,480) | (170,731) | $ 1,938,242 | $ (873,654) | $ 724,557 |
Net earnings (loss) attributable to GCI Liberty, Inc. shareholders | $ 711,789 | $ 89,322 | $ 459,044 | $ 678,543 | $ (716,668) | $ 317,383 | $ (303,326) | $ (170,692) | |||
Basic net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share (in dollars per share) | $ 6.75 | $ 0.85 | $ 4.38 | $ 6.47 | $ (6.72) | $ 2.95 | $ (2.82) | $ (1.58) | $ 18.41 | $ (8.09) | $ 6.65 |
Diluted net earnings (loss) attributable to Series A and Series B GCI Liberty, Inc. shareholders per common share (in dollars per share) | $ 6.72 | $ 0.84 | $ 4.34 | $ 6.41 | $ (6.72) | $ 2.91 | $ (2.82) | $ (1.58) | $ 18.32 | $ (8.09) | $ 6.65 |