GLOSSARY OF DEFINED TERMS

Unless the context requires otherwise, references to Liberty Latin America, “we,” “our,” “our company” and “us” in this Quarterly Report on Form 10-Q (as defined below) may refer to Liberty Latin America Ltd. or collectively to Liberty Latin America Ltd. and its subsidiaries. We have used several other terms in this Quarterly Report on Form 10-Q, most of which are defined or explained below.


2022 Form 10-K			Annual Report on Form 10-K as filed with the SEC under the Exchange Act for the year ended December 31, 2022
2027 C&W Senior Notes			$1.2 billion aggregate principal amount 6.875% senior notes due September 15, 2027 issued by C&W Senior Finance
2027 C&W Senior Secured Notes			$495 million aggregate principal amount 5.75% senior secured notes due September 7, 2027 issued by Sable International Finance Limited
2027 LPR Senior Secured Notes			$1.2 billion aggregate principal amount 6.75% senior secured notes due October 15, 2027 issued by LCPR Senior Secured Financing
2028 CWP Term Loan			$435 million principal amount 4.25% term loan facility due January 18, 2028 issued by CWP
2028 LPR Term Loan			$620 million principal amount LIBOR (or, for interest periods commencing after June 30, 2023, a SOFR-based adjusted benchmark rate) + 3.75% term loan facility due October 15, 2028 issued by LCPR Loan Financing
2029 LPR Senior Secured Notes			$820 million principal amount 5.125% senior secured notes due July 15, 2029 issued by LCPR Senior Secured Financing
2031 LCR Term Loan A			$50 million principal amount 10.875% senior secured term loan due January 15, 2031 borrowed by Liberty Servicios; from July 15, 2028 and thereafter, the applicable interest rate will increase by 0.125% per annum for each of the Sustainability Performance Targets (as defined in the credit agreement) not achieved by Liberty Costa Rica by no later than December 31, 2027
2031 LCR Term Loan B			$400 million principal amount 10.875% senior secured term loan due January 15, 2031 borrowed by Liberty Servicios; from July 15, 2028 and thereafter, the applicable interest rate will increase by 0.125% per annum for each of the Sustainability Performance Targets (as defined in the credit agreement) not achieved by Liberty Costa Rica by no later than December 31, 2027
Adjusted OIBDA			Operating income or loss before share-based compensation, depreciation and amortization, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Other operating items include (i) gains and losses on the disposition of long-lived assets, (ii) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (iii) other acquisition-related items, such as gains and losses on the settlement of contingent consideration.
Adjusted OIBDA Margin			Adjusted OIBDA divided by revenue
Adjusted Term SOFR			SOFR U.S. dollar denominated loans adjusted as follows: (i) 0.11448% for a one-month interest period, (ii) 0.26161% for a three-month interest period and (iii) 0.42826% for a six-month interest period
América Móvil			América Móvil S.A.B. de C.V.
ARPU			Average monthly subscription revenue per average fixed RGU or mobile subscriber, as applicable
ASU			Accounting Standards Update
AT&T			AT&T Inc.
AT&T Acquisition			October 31, 2020 acquisition of all of the outstanding shares of the AT&T Acquired Entities
AT&T Acquired Entities			Collectively, Liberty Mobile Inc., Liberty Mobile Puerto Rico Inc. and Liberty Mobile USVI Inc.
B2B			Business-to-business
BBVI Acquisition			December 31, 2021 acquisition of 96% of Broadband VI, LLC
C&W			Cable & Wireless Communications Limited and its subsidiaries
C&W Bahamas			The Bahamas Telecommunications Company Limited, a 49%-owned subsidiary of C&W that owns all of our operations in the Bahamas
C&W Caribbean			Reportable segment that includes all subsidiaries of C&W, excluding those within our C&W Panama and Liberty Networks segments

GLOSSARY OF DEFINED TERMS – (Continued)


C&W Credit Facilities			Senior secured credit facilities of certain subsidiaries of C&W comprised of: (i) C&W Term Loan B-6 Facility; (ii) C&W Term Loan B-5 Facility; (iii) C&W Revolving Credit Facility; and (iv) C&W Regional Facilities
C&W Jamaica			Cable & Wireless Jamaica Limited, a 92%-owned subsidiary of C&W
C&W Notes			The senior and senior secured notes of C&W comprised of: (i) 2027 C&W Senior Secured Notes; and (ii) 2027 C&W Senior Notes
C&W Panama			Reportable segment for our operations in Panama
C&W Regional Facilities			Primarily comprised of credit facilities at CWP, Columbus Communications Trinidad Limited and Columbus Communications Jamaica Limited
C&W Revolving Credit Facility			$630 million LIBOR (or, for interest periods commencing after June 30, 2023, a SOFR-based adjusted benchmark rate) + 3.25% revolving credit facility, $50 million of which is due June 30, 2023 and $580 million due January 30, 2027, of C&W
C&W Senior Finance			C&W Senior Finance Limited, a wholly-owned subsidiary of C&W
C&W Term Loan B-5 Facility			$1,510 million principal amount LIBOR (or, for interest periods commencing after June 30, 2023, a SOFR-based adjusted benchmark rate) + 2.25% term loan B-5 facility due January 31, 2028 of C&W
C&W Term Loan B-6 Facility			$590 million principal amount LIBOR (or, for interest periods commencing after June 30, 2023, a SOFR-based adjusted benchmark rate) + 3.00% term loan B-6 facility due October 15, 2029 of C&W
Capped Calls			Capped call option contracts issued in connection with the issuance of our Convertible Notes
Chile JV			Joint venture between Liberty Latin America and América Móvil that is 50:50 owned by each investee, the formation of which occurred during October 2022
Chile JV Entities			Represents the entities that were contributed to the Chile JV, consisting of Lila Chile Holding BV and its subsidiaries, which include VTR
CIP			Construction-in-process
Claro Panama			América Móvil's operations in Panama
Claro Panama Acquisition			July 1, 2022 acquisition of Claro Panama
CLP			Chilean peso
Convertible Notes			$303 million principal amount 2% convertible senior notes due July 15, 2024 issued by Liberty Latin America
COP			Colombian peso
CPE			Customer premises equipment
CRC			Costa Rican colón
CWP			Cable & Wireless Panama, S.A., a 49%-owned subsidiary of C&W that owns most of our operations in Panama
CWP Credit Facilities			Credit facilities of CWP comprised of: (i) 2028 CWP Term Loan and (ii) CWP Revolving Credit Facility
CWP Revolving Credit Facility			$20 million principal amount at Adjusted Term SOFR + 3.75% revolving credit facility due January 18, 2027 at CWP
CWSF			Cable & Wireless Superannuation Fund
Directors			Members of Liberty Latin America’s board of directors
Employee Incentive Plan			Liberty Latin America Ltd. 2018 Incentive Plan
EPS			Earnings or loss per share
ESPP			Employee stock purchase plan
Exchange Act			Securities Exchange Act of 1934, as amended
Executives			Liberty Latin America's Principal Executive Officer and Principal Financial Officer
FASB			Financial Accounting Standards Board
FCC			United States Federal Communications Commission
FCPA			United States Foreign Corrupt Practices Act of 1977, as amended
FX			Foreign currency translation effects
JMD			Jamaican dollar

GLOSSARY OF DEFINED TERMS – (Continued)


LCPR			Liberty Communications of Puerto Rico LLC
LCPR Loan Financing			LCPR Loan Financing LLC, a consolidated special purpose financing entity that was created for the primary purpose of facilitating the issuance of certain term loan debt. LCPR is required to consolidate LCPR Loan Financing as a result of certain variable interests in LCPR Loan Financing, for which LCPR is considered the primary beneficiary.
LCPR Senior Secured Financing			LCPR Senior Secured Financing Designated Activity Company, a consolidated special purpose financing entity that was created for the primary purpose of facilitating the issuance of certain debt offerings. Liberty Mobile is required to consolidate LCPR Senior Secured Financing as a result of certain variable interests in LCPR Senior Secured Financing, of which Liberty Mobile is considered the primary beneficiary.
LCR Credit Facilities			Senior secured credit facilities of Liberty Servicios comprised of: (i) 2031 LCR Term Loan A; (ii) 2031 LCR Term Loan B; and (iii) LCR Revolving Credit Facility
LCR Revolving Credit Facility			$60 million SOFR + 4.25% amended and restated revolving credit facility due January 15, 2028 of Liberty Servicios
LCR Term Loan B-1 Facility			$277 million principal amount LIBOR + 5.50% term loan facility, 50% of which was due February 1, 2024 and 50% due August 1, 2024, of Liberty Servicios (repaid January 2023)
LCR Term Loan B-2 Facility			CRC 80 billion principal amount TBP + 6.75% term loan facility, 50% of which was due February 1, 2024 and 50% due August 1, 2024, of Liberty Servicios (repaid January 2023)
Liberty Communications PR			Liberty Communications PR Holding LP and its subsidiaries, which include LCPR and Liberty Mobile and its subsidiaries
Liberty Costa Rica			Reportable segment comprising Liberty Servicios and Liberty Telecomunicaciones
Liberty Latin America Shares			Collectively, Class A, Class B and Class C common shares of Liberty Latin America
Liberty Mobile			Liberty Mobile Inc. and it subsidiaries
Liberty Networks			Reportable segment (formerly referred to as our reportable segment, C&W Networks & LatAm) comprising our managed services and wholesale business, which primarily operates through our subsea and terrestrial fiber optic cable networks; the segment comprises certain subsidiaries of C&W
Liberty Puerto Rico			Reportable segment comprising Liberty Communications PR, which has operations in Puerto Rico and the U.S. Virgin Islands
Liberty Servicios			Liberty Servicios Fijos LY, S.A., an indirectly 80%-owned subsidiary in Costa Rica, and its subsidiaries, including Liberty Telecomunicaciones
Liberty Telecomunicaciones			Liberty Telecomunicaciones de Costa Rica LY, S.A. (formerly known as Telefónica de Costa Rica TC, S.A.), an indirectly 80%-owned subsidiary in Costa Rica and it's subsidiary
Liberty Telecomunicaciones Acquisition			August 9, 2021 acquisition of Telefónica’s wireless operations in Costa Rica
LIBOR			London Inter-Bank Offered Rate
LPR Credit Facilities			Senior secured credit facilities of Liberty Puerto Rico comprised of: (i) 2028 LPR Term Loan; and (ii) LPR Revolving Credit Facility
LPR Revolving Credit Facility			$173 million LIBOR (or, for interest periods commencing after June 30, 2023, a SOFR-based adjusted benchmark rate) + 3.5% revolving credit facility due March 15, 2027 of LPR
LPR Senior Secured Notes			Senior secured notes of Liberty Puerto Rico comprised of: (i) 2029 LPR Senior Secured Notes; and (ii) 2027 LPR Senior Secured Notes
LTVP			The Long-term Value Plan represents a new component of the Employee Incentive Plan implemented during the second quarter of 2023 whereby employees receive a fixed-value award that vests annually over three years and can be settled in either common shares or cash at the discretion of the LLA Compensation Committee.
OFAC			Office of Foreign Assets Control
PSARs			Performance-based stock appreciation rights
PSUs			Performance-based restricted stock units
Quarterly Report on Form 10-Q			Quarterly Report on Form 10-Q as filed with the SEC under the Exchange Act
RGU			Revenue generating unit

GLOSSARY OF DEFINED TERMS – (Continued)


RSUs			Restricted stock units
SARs			Stock appreciation rights
SEC			U.S. Securities and Exchange Commission
Share Repurchase Program			The share repurchase program that was authorized by our Directors on February 22, 2022 that authorizes us to repurchase from time to time up to $200 million of our Class A and/or Class C common shares through December 2024. On May 8, 2023, our Directors approved an additional $200 million for the repurchase of our Class A common shares and/or Class C common shares under the Share Repurchase Program through December 2025.
SOFR			Reference rate based on secured overnight financing rate administered by the Federal Reserve Bank of New York
TBP			Tasa Básica Pasiva interest rate
Telefónica			Telefónica, S.A., a telecommunications company
U.S.			United States
U.S. GAAP			Generally accepted accounting principles in the United States
VAT			Value-added taxes
VTR			VTR Finance N.V. and its subsidiaries, a reportable segment through the date of close of the Chile JV
Weather Derivatives			Weather derivative contracts that provide insurance coverage for certain weather-related events

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


	June 30, 2023		December 31, 2022

	in millions
ASSETS
Current assets:
Cash and cash equivalents	$	632.9	$	781.0
Trade receivables, net	639.6		603.3
Prepaid expenses	89.9		65.1
Current derivative assets	133.5		91.3
Current notes receivable, net	108.5		92.0
Current contract assets	107.2		107.3
Other current assets, net	379.8		338.9
Total current assets	2,091.4		2,078.9

Goodwill	3,459.0		3,421.3
Property and equipment, net	4,257.5		4,293.6
Intangible assets not subject to amortization	1,592.8		1,592.8
Intangible assets subject to amortization, net	614.3		688.1
Other assets, net	1,395.9		1,500.5
Total assets	$	13,410.9	$	13,575.2

The accompanying notes are an integral part of these condensed consolidated financial statements.

March 31,
2018 December 31,
2017

in millions
ASSETS
Current assets:
Cash and cash equivalents $ 510.6
$ 529.9
Trade receivables, net of allowances of $142.4 million and $142.2 million, respectively 581.2
556.5
Prepaid expenses 64.8
65.5
Other current assets 245.7
222.9
Total current assets 1,402.3
1,374.8

Goodwill 5,663.6
5,673.6
Property and equipment, net 4,236.2
4,169.2
Intangible assets subject to amortization, net 1,251.6
1,316.2
Intangible assets not subject to amortization 565.9
565.4
Other assets, net 579.4
517.7
Total assets $ 13,699.0
$ 13,616.9

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS – (Continued)

(unaudited)


	June 30, 2023		December 31, 2022

	in millions
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	408.1	$	525.1
Current portion of deferred revenue	152.3		151.7
Current portion of debt and finance lease obligations	315.5		226.9
Accrued interest	133.4		118.2
Accrued payroll and employee benefits	79.1		82.1
Current portion of operating lease liabilities	89.1		76.7
Other accrued and current liabilities	582.5		581.2
Total current liabilities	1,760.0		1,761.9
Long-term debt and finance lease obligations	7,642.9		7,653.8
Deferred tax liabilities	688.9		691.2
Deferred revenue	92.8		109.3
Other long-term liabilities	833.4		792.9
Total liabilities	11,018.0		11,009.1

Commitments and contingencies

Equity:
Liberty Latin America shareholders:
Class A, $0.01 par value; 500.0 million shares authorized; 52.5 million and 41.5 million shares issued and outstanding, respectively, at June 30, 2023; 51.8 million and 42.7 million shares issued and outstanding, respectively, at December 31, 2022	0.5		0.5
Class B, $0.01 par value; 50.0 million shares authorized; 2.2 million shares issued and outstanding at June 30, 2023; 2.1 million shares issued and outstanding at December 31, 2022	—		—
Class C, $0.01 par value; 500.0 million shares authorized; 189.1 million and 164.9 million shares issued and outstanding, respectively, at June 30, 2023; 187.4 million and 171.3 million shares issued and outstanding, respectively, at December 31, 2022	1.9		1.9
Undesignated preference shares, $0.01 par value; 50.0 million shares authorized; nil shares issued and outstanding at each period	—		—
Treasury shares, at cost; 35.3 million and 25.3 million shares, respectively	(325.2)		(243.4)
Additional paid-in capital	5,227.5		5,177.1
Accumulated deficit	(2,881.0)		(2,869.5)
Accumulated other comprehensive loss, net of taxes	(198.0)		(149.2)
Total Liberty Latin America shareholders	1,825.7		1,917.4
Noncontrolling interests	567.2		648.7
Total equity	2,392.9		2,566.1
Total liabilities and equity	$	13,410.9	$	13,575.2

The accompanying notes are an integral part of these condensed consolidated financial statements.

March 31,
2018 December 31, 2017

in millions
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 276.7
$ 286.8
Deferred revenue 159.3
143.4
Current portion of debt and capital lease obligations 212.3
263.3
Accrued capital expenditures 108.3
128.6
Accrued interest 58.8
115.6
Accrued income taxes 88.7
91.5
Other accrued and current liabilities 691.2
557.7
Total current liabilities 1,595.3
1,586.9
Long-term debt and capital lease obligations 6,207.1
6,108.2
Deferred tax liabilities 516.6
533.4
Other long-term liabilities 783.1
697.8
Total liabilities 9,102.1
8,926.3

Commitments and contingencies

Equity:
Liberty Latin America shareholders:
Class A, $0.01 par value; 500,000,000 shares authorized; 48,438,433 and 48,428,841 shares issued and outstanding, respectively 0.5
0.5
Class B, $0.01 par value; 50,000,000 shares authorized; 1,938,625 and 1,940,193 shares issued and outstanding, respectively —
—
Class C, $0.01 par value; 500,000,000 shares authorized; 120,859,778 and 120,843,539 shares issued and outstanding, respectively 1.2
1.2
Undesignated preference shares, $0.01 par value; 50,000,000 shares authorized; nil shares issued and outstanding at each period —
—
Additional paid-in capital 4,397.5
4,402.8
Accumulated deficit (1,066.3 ) (1,010.7 )
Accumulated other comprehensive loss, net of taxes (86.2 ) (64.2 )
Total Liberty Latin America shareholders 3,246.7
3,329.6
Noncontrolling interests 1,350.2
1,361.0
Total equity 4,596.9
4,690.6
Total liabilities and equity $ 13,699.0
$ 13,616.9

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions, except per share amounts

Revenue	$	1,122.7	$	1,216.2	$	2,226.5	$	2,432.4
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below):
Programming and other direct costs of services	233.4		300.8		476.8		604.2
Other operating costs and expenses	468.5		486.4		951.6		992.7
Depreciation and amortization	240.5		213.3		475.1		427.4
Impairment, restructuring and other operating items, net	40.8		568.6		70.5		576.4
	983.2		1,569.1		1,974.0		2,600.7
Operating income (loss)	139.5		(352.9)		252.5		(168.3)
Non-operating income (expense):
Interest expense	(149.1)		(136.9)		(295.7)		(266.6)
Realized and unrealized gains on derivative instruments, net	64.4		283.3		5.3		249.6
Foreign currency transaction gains (losses), net	(6.7)		(262.0)		42.5		(165.4)
Gains (losses) on debt extinguishments, net	0.4		—		(4.2)		—
Other income (expense), net	1.3		(0.4)		(0.4)		(5.2)
	(89.7)		(116.0)		(252.5)		(187.6)
Earnings (loss) before income taxes	49.8		(468.9)		—		(355.9)
Income tax expense	(30.6)		(39.7)		(43.8)		(62.5)
Net earnings (loss)	19.2		(508.6)		(43.8)		(418.4)
Net loss attributable to noncontrolling interests	19.0		33.6		32.3		24.0
Net earnings (loss) attributable to Liberty Latin America shareholders	$	38.2	$	(475.0)	$	(11.5)	$	(394.4)

Basic net earnings (loss) per share attributable to Liberty Latin America shareholders	$	0.18	$	(2.11)	$	(0.05)	$	(1.74)

Diluted net earnings (loss) per share attributable to Liberty Latin America shareholders	$	0.17	$	(2.11)	$	(0.05)	$	(1.74)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Three months ended March 31,
2018 2017
in millions

Revenue $ 909.9
$ 910.9
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below):
Programming and other direct costs of services 215.8
221.9
Other operating 166.5
170.5
Selling, general and administrative (SG&A)
193.3
176.4
Depreciation and amortization 202.3
193.9
Impairment, restructuring and other operating items, net 33.7
13.4
811.6
776.1
Operating income 98.3
134.8
Non-operating income (expense):
Interest expense (102.5 ) (94.3 )
Realized and unrealized losses on derivative instruments, net (41.5 ) (27.3 )
Foreign currency transaction gains, net 15.9
14.5
Loss on debt modification and extinguishment (13.0 ) —
Other income, net 5.3
6.0
(135.8 ) (101.1 )
Earnings (loss) before income taxes (37.5 ) 33.7
Income tax expense (16.8 ) (23.1 )
Net earnings (loss) (54.3 ) 10.6
Net loss (earnings) attributable to noncontrolling interests 9.8
(16.4 )
Net loss attributable to Liberty Latin America shareholders $ (44.5 ) $ (5.8 )

Basic and diluted net loss per share attributable to Liberty Latin America shareholders $ (0.26 ) $ (0.03 )

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited)


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Net earnings (loss)	$	19.2	$	(508.6)	$	(43.8)	$	(418.4)
Other comprehensive earnings (loss), net of taxes:
Foreign currency translation adjustments	2.0		53.7		22.4		31.2
Reclassification adjustments included in net loss	—		(2.0)		—		(3.5)
Pension-related adjustments and other, net	(72.7)		0.6		(70.5)		(9.1)
Other comprehensive earnings (loss)	(70.7)		52.3		(48.1)		18.6
Comprehensive loss	(51.5)		(456.3)		(91.9)		(399.8)
Comprehensive loss attributable to noncontrolling interests	17.7		34.5		31.6		25.0
Comprehensive loss attributable to Liberty Latin America shareholders	$	(33.8)	$	(421.8)	$	(60.3)	$	(374.8)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Three months ended March 31,
2018 2017
in millions

Net earnings (loss) $ (54.3 ) $ 10.6
Other comprehensive loss, net of taxes:
Foreign currency translation adjustments (31.8 ) (10.6 )
Reclassification adjustments included in net earnings (loss)
1.6
1.0
Pension-related adjustments and other, net 0.9
(3.5 )
Other comprehensive loss (29.3 ) (13.1 )
Comprehensive loss
(83.6 ) (2.5 )
Comprehensive loss (earnings) attributable to noncontrolling interests
10.3
(15.9 )
Comprehensive loss attributable to Liberty Latin America shareholders
$ (73.3 ) $ (18.4 )

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED ~~STATEMENT~~STATEMENTS OF EQUITY

(unaudited)


	Liberty Latin America shareholders																Non-controlling interests		Total equity
	Common shares						Treasury Stock		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive loss, net of taxes		Total Liberty Latin America shareholders
	Class A		Class B		Class C
	in millions

Balance at April 1, 2022	$	0.5	$	—	$	1.9	$	(130.0)	$	5,113.2	$	(2,613.3)	$	(123.3)	$	2,249.0	$	686.9	$	2,935.9
Net loss	—		—		—		—		—		(475.0)		—		(475.0)		(33.6)		(508.6)
Other comprehensive earnings	—		—		—		—		—		—		53.2		53.2		(0.9)		52.3
Repurchase of Liberty Latin America common shares	—		—		—		(62.8)		—		—		—		(62.8)		—		(62.8)
Distribution to noncontrolling interest owner	—		—		—		—		—		—		—		—		(1.9)		(1.9)
Share-based compensation	—		—		—		—		33.0		—		—		33.0		—		33.0

Balance at June 30, 2022	$	0.5	$	—	$	1.9	$	(192.8)	$	5,146.2	$	(3,088.3)	$	(70.1)	$	1,797.4	$	650.5	$	2,447.9

Balance at January 1, 2022	$	0.5	$	—	$	1.8	$	(74.0)	$	5,075.3	$	(2,693.9)	$	(89.7)	$	2,220.0	$	677.4	$	2,897.4
Net loss	—		—		—		—		—		(394.4)		—		(394.4)		(24.0)		(418.4)
Other comprehensive earnings	—		—		—		—		—		—		19.6		19.6		(1.0)		18.6
Repurchase of Liberty Latin America common shares	—		—		—		(118.8)		—		—		—		(118.8)		—		(118.8)
Distribution to noncontrolling interest owner	—		—		—		—		—		—		—		—		(1.9)		(1.9)
Share-based compensation	—		—		0.1		—		70.9		—		—		71.0		—		71.0

Balance at June 30, 2022	$	0.5	$	—	$	1.9	$	(192.8)	$	5,146.2	$	(3,088.3)	$	(70.1)	$	1,797.4	$	650.5	$	2,447.9

The accompanying notes are an integral part of these condensed consolidated financial statements.

Liberty Latin America shareholders
Non-controlling
interests
Total equity
Common shares Additional paid-in capital Accumulated deficit
Accumulated
other
comprehensive
loss,
net of taxes
Total Liberty Latin America shareholders
Class A Class B Class C
in millions

Balance at January 1, 2018, before effect of accounting change $ 0.5
$ —
$ 1.2
$ 4,402.8
$ (1,010.7 ) $ (64.2 ) $ 3,329.6
$ 1,361.0
$ 4,690.6
Accounting change (note 2) —
—
—
—
(11.1 ) —
(11.1 ) 3.6
(7.5 )
Balance at January 1, 2018, as adjusted for accounting change 0.5
—
1.2
4,402.8
(1,021.8 ) (64.2 ) 3,318.5
1,364.6
4,683.1
Net loss —
—
—
—
(44.5 ) —
(44.5 ) (9.8 ) (54.3 )
Other comprehensive loss —
—
—
—
—
(28.8 ) (28.8 ) (0.5 ) (29.3 )
C&W Jamaica NCI Acquisition —
—
—
(12.0 ) —
6.8
(5.2 ) (14.9 ) (20.1 )
Capital contribution from noncontrolling interest owner —
—
—
—
—
—
—
10.0
10.0
Shared-based compensation —
—
—
7.4
—
—
7.4
—
7.4
Other —
—
—
(0.7 ) —
—
(0.7 ) 0.8
0.1
Balance at March 31, 2018 $ 0.5
$ —
$ 1.2
$ 4,397.5
$ (1,066.3 ) $ (86.2 ) $ 3,246.7
$ 1,350.2
$ 4,596.9
LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY – (Continued)

(unaudited)


	Liberty Latin America shareholders																Non-controlling interests		Total equity
	Common shares						Treasury Stock		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive loss, net of taxes		Total Liberty Latin America shareholders
	Class A		Class B		Class C
	in millions

Balance at April 1, 2023	$	0.5	$	—	$	1.9	$	(268.0)	$	5,207.3	$	(2,919.2)	$	(126.0)	$	1,896.5	$	625.7	$	2,522.2
Net earnings	—		—		—		—		—		38.2		—		38.2		(19.0)		19.2
Other comprehensive loss	—		—		—		—		—		—		(72.0)		(72.0)		1.3		(70.7)
Repurchase of Liberty Latin America common shares	—		—		—		(57.2)		—		—		—		(57.2)		—		(57.2)
Cash and non-cash distributions to noncontrolling interest owners	—		—		—		—		—		—		—		—		(40.8)		(40.8)
Share-based compensation	—		—		—		—		20.2		—		—		20.2		—		20.2
Balance at June 30, 2023	$	0.5	$	—	$	1.9	$	(325.2)	$	5,227.5	$	(2,881.0)	$	(198.0)	$	1,825.7	$	567.2	$	2,392.9

Balance at January 1, 2023	$	0.5	$	—	$	1.9	$	(243.4)	$	5,177.1	$	(2,869.5)	$	(149.2)	$	1,917.4	$	648.7	$	2,566.1
Net loss	—		—		—		—		—		(11.5)		—		(11.5)		(32.3)		(43.8)
Other comprehensive loss	—		—		—		—		—		—		(48.8)		(48.8)		0.7		(48.1)
Repurchase of Liberty Latin America common shares	—		—		—		(81.8)		—		—		—		(81.8)		—		(81.8)
Cash and non-cash distributions to noncontrolling interest owners	—		—		—		—		—		—		—		—		(49.9)		(49.9)
Share-based compensation	—		—		—		—		50.4		—		—		50.4		—		50.4
Balance at June 30, 2023	$	0.5	$	—	$	1.9	$	(325.2)	$	5,227.5	$	(2,881.0)	$	(198.0)	$	1,825.7	$	567.2	$	2,392.9

The accompanying notes are an integral part of these condensed consolidated financial statements.

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Six months ended June 30,
	2023		2022
	in millions
Cash flows from operating activities:
Net loss	$	(43.8)	$	(418.4)
Adjustments to reconcile net loss to net cash provided by operating activities:
Share-based compensation expense	53.7		61.8
Depreciation and amortization	475.1		427.4
Impairments and other non-cash charges, net	41.2		562.8
Amortization of debt financing costs, premiums and discounts, net	16.4		18.5
Realized and unrealized gains on derivative instruments, net	(5.3)		(249.6)
Foreign currency transaction losses (gains), net	(42.5)		165.4
Losses on debt extinguishments, net	4.2		—
Deferred income tax benefit	(7.5)		(7.9)
Changes in operating assets and liabilities, net of the effect of acquisitions	(203.5)		(212.9)
Net cash provided by operating activities	288.0		347.1

Cash flows from investing activities:
Capital expenditures, net	(273.1)		(319.1)
Cash paid in connection with acquisitions, net of cash acquired	—		(21.8)
Other investing activities, net	(18.0)		(2.0)
Net cash used by investing activities	$	(291.1)	$	(342.9)

The accompanying notes are an integral part of these condensed consolidated financial statements.

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – (Continued)

(unaudited)


	Six months ended June 30,
	2023		2022
	in millions
Cash flows from financing activities:
Borrowings of debt	$	642.9	$	258.3
Payments of principal amounts of debt and finance lease obligations	(645.3)		(105.5)
Repurchase of Liberty Latin America common shares	(80.3)		(119.4)
Net cash received related to derivative instruments	9.8		12.4
Payment of financing costs and debt redemption premiums	(15.4)		(6.0)
Distributions to noncontrolling interest owners	(41.2)		(1.9)
Other financing activities, net	(3.2)		(6.8)
Net cash provided (used) by financing activities	(132.7)		31.1

Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4.2)		(2.4)

Net increase (decrease) in cash, cash equivalents and restricted cash	(140.0)		32.9

Cash, cash equivalents and restricted cash:
Beginning of period	788.9		1,074.2
End of period	$	648.9	$	1,107.1

Cash paid for interest	$	258.4	$	241.1
Net cash paid for taxes	$	40.9	$	57.7

The accompanying notes are an integral part of these condensed consolidated financial statements.

Three months ended March 31,
2018 2017
in millions
Cash flows from operating activities:
Net earnings (loss) $ (54.3 ) $ 10.6
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Share-based compensation expense 6.5
5.6
Depreciation and amortization 202.3
193.9
Impairment, restructuring and other operating items, net 33.7
13.4
Amortization of debt financing costs, premiums and discounts, net (0.5 ) (3.8 )
Realized and unrealized losses on derivative instruments, net
41.5
27.3
Foreign currency transaction gains, net
(15.9 ) (14.5 )
Loss on debt modification and extinguishment
13.0
—
Deferred income tax benefit (7.5 ) (17.3 )
Changes in operating assets and liabilities, net of the effect of an acquisition (55.6 ) (140.2 )
Net cash provided by operating activities 163.2
75.0

Cash flows from investing activities:
Capital expenditures (188.2 ) (124.4 )
Other investing activities, net 0.4
(2.6 )
Net cash used by investing activities (187.8 ) (127.0 )

Cash flows from financing activities:
Borrowings of debt 190.0
136.5
Repayments of debt and capital lease obligations (190.4 ) (73.9 )
Distributions to noncontrolling interest owners —
(14.6 )
Capital contribution from noncontrolling interest owner 10.0
—
Distributions to Liberty Global —
(18.8 )
Cash payment related to the C&W Jamaica NCI Acquisition (18.6 ) —
Other financing activities, net (2.8 ) 5.3
Net cash provided (used) by financing activities (11.8 ) 34.5

Effect of exchange rate changes on cash, cash equivalents and restricted cash 0.1
(0.5 )

Net decrease in cash, cash equivalents and restricted cash
(36.3 ) (18.0 )

Cash, cash equivalents and restricted cash:
Beginning of period 568.2
580.8
End of period $ 531.9
$ 562.8

Cash paid for interest $ 156.3
$ 168.2
Net cash paid for taxes $ 29.1
$ 34.6

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements

~~March 31, 2018~~June 30, 2023

(unaudited)

(1) Basis of Presentation


~~(1)~~	~~Basis of Presentation~~

See the Glossary of defined terms at the beginning of this Quarterly Report on Form 10-Q for terms used throughout the condensed consolidated financial statements.

General

Liberty Latin America Ltd. (~~Liberty Latin America~~) is a registered company in Bermuda that primarily includes (i) ~~Cable & Wireless~~C&W; (ii) Liberty Communications ~~Limited and its subsidiaries (C&W), (ii) VTR Finance B.V. (VTR Finance~~)PR; (iii) LBT CT Communications, S.A. (a less than wholly-owned entity) and its subsidiaries, which ~~includes VTR.com SpA (VTR~~),include Liberty Servicios and ~~(iii) LiLAC Communications Inc.~~Liberty Telecomunicaciones; and ~~its subsidiaries, which includes Liberty Cablevision~~(iv) prior to the closing of ~~Puerto Rico LLC (Liberty Puerto Rico), an entity~~the formation of the Chile JV in ~~which Liberty Latin America owns a 60.0% interest.~~October 2022, VTR, as further described below. C&W owns less than 100% of certain of its consolidated subsidiaries, including ~~Cable & Wireless Panama, SA (~~C&W ~~Panama~~Bahamas, C&W Jamaica and CWP.

We are an international provider of fixed, mobile and subsea telecommunications services. We provide:

A.~~) (a 49.0%-owned entity that owns most~~residential and B2B services in:

i.over 20 countries across Latin America and the Caribbean through two of our ~~operations~~reportable segments, C&W Caribbean and C&W Panama;

ii.Puerto Rico, through our reportable segment Liberty Puerto Rico; and

iii.Costa Rica, through our reportable segment Liberty Costa Rica.

B.through our reportable segment Liberty Networks, (i) enterprise services in ~~Panama), The Bahamas Telecommunications Company Limited (a 49.0%-owned entity~~certain other countries in Latin America and the Caribbean and (ii) wholesale services over our subsea and terrestrial fiber optic cable networks that ~~owns all~~connect approximately 40 markets in that region.

In October 2022, we completed the formation of the Chile JV by contributing the Chile JV Entities into the Chile JV. Subsequent to the formation of the Chile JV, we began accounting for our ~~operations~~50% interest in the ~~Bahamas)~~Chile JV as an equity method investment. Prior to the formation of the Chile JV, VTR was a wholly owned subsidiary. As such, our condensed consolidated statements of operations and ~~Cable & Wireless Jamaica Limited (C&W Jamaica) (a 91.7%-owned entity that owns~~cash flows for the ~~majority~~2022 periods include VTR.

Unless otherwise indicated, ownership percentages are calculated as of ~~our operations in Jamaica).~~June 30, 2023.

The accompanying condensed consolidated financial statements have been prepared in accordance with ~~generally accepted accounting principles in the United States (~~U.S. GAAP) and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by U.S. GAAP or ~~Securities and Exchange Commission~~SEC rules and regulations for complete financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our ~~2017 Annual Report on~~2022 Form ~~10-K (2017 Form 10-K~~).10-K.

~~These condensed consolidated~~The preparation of financial statements ~~include~~in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the ~~historical financial information~~reported amounts of ~~(i) Liberty Latin America~~assets and ~~its consolidated subsidiaries for~~liabilities at the ~~period following~~date of the ~~Split-Off, as defined below, and (ii) certain former subsidiaries of Liberty Global plc (Liberty Global) for periods prior to the Split-Off. Although Liberty Latin America was reported on a combined basis prior to the Split-Off, these~~ financial statements ~~present all prior periods as consolidated. In these notes, the terms “~~we~~,” “our,” “our company” and “~~us” may refer, as the context requires, to Liberty Latin America or collectively to Liberty Latin America and its subsidiaries. Unless otherwise indicated, ownership percentages and convenience translations into United States (~~U.S.) dollars are calculated as of March 31, 2018.~~

~~We are an international provider of video, broadband internet, fixed-line telephony and mobile services. We provide residential and business-to-business (B2B) services in (i) 18 countries, primarily in Latin America~~ and the ~~Caribbean, through C&W, (ii) Chile through VTR~~reported amounts of revenue and ~~(iii) Puerto Rico through Liberty Puerto Rico. C&W also provides (i) B2B communication services~~expenses during the reporting period. Estimates and assumptions are used in accounting for, among other things, the valuation of acquisition-related assets and liabilities, expected credit losses, programming and copyright expenses, deferred income taxes and related valuation allowances, loss contingencies, fair value measurements, impairment assessments, capitalization of internal costs associated with construction and installation activities, useful lives of long-lived assets and actuarial liabilities associated with certain ~~other countries in Latin America and the Caribbean and (ii) wholesale communication services over its sub-sea and terrestrial fiber optic cable networks that connect over 40 markets in that region.~~

~~Reclassifications~~

benefit plans. Actual results could differ from those estimates. Certain ~~prior period~~prior-period amounts have been reclassified to conform to the current period presentation.

~~Split-off of Liberty Latin America from Liberty Global~~

~~On December 29, 2017, Liberty Global completed the split-off (the~~ ~~Split-Off~~) of our company, which at such time was one of Liberty Global's wholly-owned subsidiaries. In the Split-Off, 48,428,841 Class A common shares, 1,940,193 Class B common shares and 120,843,539 Class C common shares of Liberty Latin America (collectively ~~Liberty Latin America Shares~~) were issued. As a result of the Split-Off, Liberty Latin America became an independent, publicly traded company, and its assets and liabilities as of the time of the Split-Off consisted of the businesses, assets and liabilities that were formerly attributed to Liberty Global’s “LiLAC Group.” The Split-Off was accounted for at historical cost due to the pro rata distribution of Liberty Latin America Shares to holders of Liberty Global’s LiLAC Shares, as defined below.

~~Several agreements were entered into in connection with the Split-Off (the~~ ~~Split-Off Agreements~~) between Liberty Latin America, Liberty Global and/or certain of their respective subsidiaries, including the Tax Sharing Agreement, the Reorganization Agreement, the Services Agreement, the Sublease Agreement and the Facilities Sharing Agreement, each as defined and described in note 11.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

Correction of Immaterial Errors

As further described in our 2022 Form 10-K, during the third quarter of 2022, we identified certain errors in our previously reported consolidated financial statements, primarily related to revenue, programming and other direct costs of services, trade receivables, note receivables, and other assets. The revisions to our June 30, 2022 condensed consolidated statements of operations, equity and cash flows as a result of these error corrections were immaterial.

~~LiLAC Transaction~~

~~On July 1, 2015, Liberty Global completed~~(2) Accounting Changes and Recent Accounting Pronouncements

Accounting Change

ASU 2022-04

In September 2022, the “FASB issued ASU No. 2022-04, ~~LiLAC Transaction~~Liabilities—Supplier Finance Programs (ASU 2022-04),~~” pursuant~~ which requires that a buyer in a supplier finance program disclose certain information about the program to ~~which each holder of Class A, Class B and Class C Liberty Global ordinary shares (Liberty Global Shares) received one share~~allow financial statement users to understand the nature of the ~~corresponding class~~program, activity during the period and changes to the program from period to period. In each annual reporting period, the disclosure requirements include (i) the key terms of ~~Liberty Global’s LiLAC ordinary shares (LiLAC Shares) for~~the program, including payment terms, (ii) the amount and location in the balance sheet of obligations outstanding with the finance provider or intermediary, and (iii) a rollforward of the obligations during the annual period. In each ~~20 Liberty Global Shares held~~interim reporting period, the disclosure requirements include the amount of obligations outstanding that the buyer has confirmed as valid to the finance provider or intermediary as of the ~~record date~~end of the interim period. The rollforward disclosure is effective for ~~such distribution.~~fiscal years beginning after December 15, 2023, while the remaining annual disclosures are required to be disclosed on an interim basis in the year of adoption. With the exception of the rollforward disclosure requirements, we adopted ASU 2022-04 effective January 1, 2023. Disclosures surrounding our supplier finance programs are included in note 8.


~~(2)~~	~~Accounting Changes and~~ Recent Accounting Pronouncements

~~Accounting Changes~~

ASU ~~2014-09~~2020-04, ASU 2021-01 and ASU 2022-06

In ~~May 2014,~~March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial ~~Accounting Standards Board (~~Reporting~~FASB) issued Accounting Standards Update~~ (ASU~~) No. 2014-09,~~ ~~Revenue from Contracts with Customers~~ (~~ASU 2014-09~~ 2020-04), which ~~requires an entity~~provides optional guidance for a limited time to ~~recognize~~ease the ~~amount~~potential accounting burden associated with transitioning away from reference rates, such as LIBOR. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) (ASU 2021-01), which clarifies certain optional expedients and exceptions in Topic 848. The expedients and exceptions provided by ASU 2020-04 and ASU 2021-01 are for the application of ~~revenue~~U.S. GAAP to ~~which it expects~~contracts, hedging relationships and other transactions affected by the rate reform, and was initially not intended to be ~~entitled~~available after December 31, 2022, other than for certain hedging relationships entered into before December 31, 2022. In December 2022, the ~~transfer~~FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of ~~promised goods or services~~the Sunset Date of Topic 848 (ASU 2022-06), which defers the expiration date of Topic 848 from December 31, 2022, to ~~customers. We adopted ASU 2014-09 effective January 1, 2018 by recording~~December 31, 2024, and permits companies to apply the ~~cumulative effect to~~guidance in Topic 848 through the ~~opening balance~~expected cessation date of ~~our accumulated deficit. We applied~~USD LIBOR. Through June 30, 2023, the ~~new standard to contracts that were not complete as~~phase out of ~~January 1, 2018. The comparative information~~LIBOR has not ~~been restated and continues to be reported under the accounting standards in effect for those periods.~~

The most significant impacts of ASU 2014-09 on our revenue recognition policies relate to our accounting for (i) long-term capacity contracts, (ii) subsidized handset plans and (iii) certain installation and other upfront fees, each as set forth below:

We enter into certain long-term capacity contracts with customers where the customer pays the transaction consideration at inception of the contract. Under previous accounting standards, we did not impute interest for advance payments from customers related to services that are provided over time. Under ASU 2014-09, payment received from a customer significantly in advance of the provision of services is indicative of a financing component within the contract. If the financing component is significant, interest expense is accreted over the life of the contract with a corresponding increase to revenue.

ASU 2014-09 requires the identification of deliverables in contracts with customers that qualify as performance obligations. The transaction price consideration from customers is allocated to each performance obligation under the contract on the basis of relative standalone selling price. Under previous accounting standards, when we offered discounted equipment, such as handsets under a subsidized contract, upfront revenue recognition was limited to the upfront cash collected from the customer as the remaining monthly fees to be received from the customer, including fees associated with the equipment, were contingent upon delivering future airtime. This limitation is not applied under ASU 2014-09. The primary impact on revenue reporting is that when we sell discounted equipment together with airtime services to customers, revenue allocated to equipment and recognized when control of the device passes to the customer will increase and revenue recognized as services are delivered will decrease.

When we enter into contracts to provide services to our customers, we often charge installation or other upfront fees. Under previous accounting standards, installation fees related to services provided over our fixed networks were recognized as revenue during the period in which the installation occurred to the extent those fees were equal to or less than direct selling costs. Under ASU 2014-09, these fees are generally deferred and recognized as revenue over the contractual period for those contracts with substantive termination penalties, or for the period of time the upfront fees conveyhad a material ~~right for month-to-month contracts and contracts that do not include substantive termination penalties.~~

ASU 2014-09 also impacted our accounting for certain upfront costs directly associated with obtaining and fulfilling customer contracts. Under our previous policy, these costs were expensed as incurred unless the costs were in the scope of other accounting standards that allowed for capitalization. Under ASU 2014-09, the upfront costs associated with contracts that have substantive termination penalties and a term of longer than one year are recognized as assets and amortized to other operating expenses over the applicable period benefited.

~~We implemented internal controls to ensure we adequately evaluated our contracts and properly assessed the~~ impact ~~of ASU 2014-09~~ on our condensed consolidated financial statements. ~~We do not believe such new controls represent significant changes to our internal control over financial reporting.~~

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

~~For information regarding changes to our accounting policies following the adoption of ASU 2014-09 and our contract assets and deferred revenue balances, see note 3.~~

(3) Current Expected Credit Losses

The ~~cumulative effect of the~~aggregate changes ~~made to~~in our ~~condensed consolidated balance sheet as of January 1, 2018 is as follows:~~allowance for expected credit losses associated with our trade receivables, and current and long-term notes receivables are set forth below:


	Six months ended June 30,
	2023		2022
	in millions

Balance at beginning of period	$	101.1	$	112.6
Provision for expected losses, net	36.3		32.4
Write-offs	(37.9)		(21.3)
Foreign currency translation adjustments and other	1.3		(5.6)
Balance at end of period	$	100.8	$	118.1

Balance at December 31, 2017 Cumulative catch up adjustments upon adoption Balance at January 1, 2018
in millions
Assets:
Other current assets $ 222.9
$ 15.8
$ 238.7
Other assets, net $ 517.7
$ 15.6
$ 533.3

Liabilities:
Deferred revenue $ 143.4
$ 13.3
$ 156.7
Other long-term liabilities $ 697.8
$ 25.6
$ 723.4

Equity:
Accumulated deficit $ (1,010.7 ) $ (11.1 ) $ (1,021.8 )
Noncontrolling interests $ 1,361.0
$ 3.6
$ 1,364.6

~~The impact of our adoption of ASU 2014-09 to our condensed consolidated statement of operations for the three months ended March 31, 2018 is as follows:~~

Before adoption of ASU 2014-09
Impact of ASU 2014-09
Increase (decrease)
As reported
in millions

Revenue $ 909.0
$ 0.9
$ 909.9

Operating costs and expenses – selling, general and administrative $ 193.6
$ (0.3 ) $ 193.3

Non-operating expense – interest expense $ 98.3
$ 4.2
$ 102.5

Income tax expense $ 17.3
$ (0.5 ) $ 16.8

Net loss $ 51.8
$ 2.5
$ 54.3

~~ASU 2016-18~~(4) Acquisitions

2022 Acquisition

Claro Panama Acquisition. On September 14, 2021, we entered into a definitive agreement to acquire América Móvil’s operations in Panama in an all-cash transaction based upon an enterprise value of $200 million on a cash- and debt-free basis. On July 1, 2022, we completed the acquisition of Claro Panama, which was financed through a combination of debt and existing cash.

We have accounted for the Claro Panama Acquisition as a business combination using the acquisition method of accounting, whereby the total purchase price was allocated to the acquired identifiable net assets of Claro Panama based on assessments of their respective fair values. A summary of the purchase price and the opening balance sheet of Claro Panama at the July 1, 2022acquisition date is presented in the following table. The opening balance sheet presented below reflects our final purchase price allocation (in millions):


Current assets	$	24.4
Property and equipment	136.3
Intangible assets subject to amortization (a)	47.9
Other assets (b)	198.2
Current liabilities	(64.8)
Long-term liabilities (c)	(132.7)
Total purchase price	$	209.3

(a)At July 1, 2022, the weighted average useful life of the acquired spectrum intangible assets was approximately6 years.

(b)Primarily consists of operating lease right-of-use assets.

(c)Primarily consists of the non-current portion of operating lease obligations.

2021 Acquisition

~~In November 2016,~~BBVI Acquisition. Effective December 31, 2021, we acquired 96% of the ~~FASB issued ASU 2016-18,~~ ~~Statement~~outstanding shares of ~~Cash Flows-Restricted Cash~~ (~~ASU 2016-18~~),Broadband VI, LLC for $33 million, the payment of which ~~addresses the presentation of restricted cash~~occurred in January 2022. Broadband VI, LLC provides fixed services to residential and business customers in the ~~statement of cash flows. This ASU requires that the statement of cash flows explain the change~~U.S. Virgin Islands and is included in ~~the beginning-of-period and end-of-period totals of cash, cash equivalents and restricted cash balances. We adopted ASU 2016-18 on January 1, 2018, which resulted in an increase (decrease) to~~ our operating, financing and investing cash flows of ($1 million), $3 million, and $6 million, respectively, during the three months ended March 31, 2017. At March 31, 2018 and December 31, 2017, the balance of our restricted cash was $21 million and $38 million, respectively.Liberty Puerto Rico reportable segment.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

Supplemental Pro Forma Information

~~ASU 2017-07~~

~~In March 2017,~~The pro forma financial information set forth in the ~~FASB issued ASU No. 2017-07,~~ ~~Compensation -Retirement Benefits—Improving the Presentation~~table below is based on available information and assumptions that we believe are reasonable. The pro forma financial information is for illustrative and informational purposes only and is not intended to represent or be indicative of ~~the Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost~~ (~~ASU 2017-07), which includes changes to the presentation of periodic benefit cost components. Under ASU 2017-07, we will continue to present the service component of~~what our net benefit cost as a component of operating income but present the other components of our net benefit cost computation, which can include credits, within non-operating income (expense) in our consolidated statements of operations. We adopted ASU 2017-07 on January 1, 2018. The change in presentation to our condensed consolidated statementsresults of operations ~~from ASU 2017-07 was applied on a retrospective basis. As a result of the adoption of ASU 2017-07, we have presented $3 million of pension-related credits in other income, netin our condensed consolidated statements of operations for each of the three months ended March 31, 2018 and 2017.~~

~~Recent Accounting Pronouncements~~

~~ASU 2016-02~~

~~In February 2016, the FASB issued ASU No. 2016-02,~~ ~~Leases~~ (~~ASU 2016-02~~), which, for most leases, will result in lessees recognizing lease assets and lease liabilities on the balance sheet with additional disclosures about leasing arrangements. ASU 2016-02 requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach and additional guidance provided by ASU 2018-01, ~~Leases (Topic 842)—Land Easement Practical Expedient for Transition to Topic 842~~, includes a number of optional practical expedients an entity may elect to apply. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We will adopt ASU 2016-02 on January 1, 2019. Although we are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements, the main impact of the adoption of this standard will be the recognition of lease assets and lease liabilities in our consolidated balance sheets for those leases classified as operating leases under previous U.S. GAAP. ASU 2016-02 will not have significant impacts on our consolidated statements of operations or cash flows.

~~(3)~~ ~~Summary of Changes in Significant Accounting Policies~~

~~The following accounting policies reflect updates to our~~ ~~Summary of Significant Accounting Policies~~ ~~included in our 2017 Form 10-K as a result of the adoption of ASU 2014-09. For additional information regarding the adoption of ASU 2014-09, see note~~ 2.

~~Contract Assets~~

When we transfer goods or services to a customer but do not have an unconditional right to payment, we record a contract asset. Contract assets are reclassified to trade receivables, net in our consolidated balance sheet at the point in time we have the unconditional right to payment. Our contract assets were $12 million and $13 million as of March 31, 2018 and January 1, 2018, respectively. The change in our contract assets during the three months ended March 31, 2018 were not material. The current and long-term portion of contract assets are included in other current assets and other assets, net, respectively, in our condensed consolidated balance sheet.

~~Deferred Contract Costs~~

Incremental costs to obtain a contract with a customer, such as incremental sales commissions, are recognized as an asset and amortized to SG&A expenses over the applicable period benefited, which is the longer of the contract life or the economic life of the commission. If, however, the amortization period is one year or less, we expense such costs in the period incurred. Costs to obtain a contract that would have been ~~incurred regardless~~had this acquisition occurred on the date indicated nor should it be considered representative of ~~whether~~our future financial condition or results of operations. The pro forma information set forth in the ~~contract was obtained are recognized~~table below includes, as anapplicable, tax-effected pro forma adjustments primarily related to:

i.the alignment of accounting policies;

ii.depreciation expense ~~when incurred. Our deferred contract costs were~~related to acquired tangible assets;

iii.amortization expense related to acquired intangible assets; and

iv.~~$10 million and $9 million~~the elimination of direct acquisition costs.

The following unaudited pro forma condensed consolidated operating results give effect to the Claro Panama Acquisition, as if it had been completed as of ~~March 31, 2018 and~~ January 1, 2018, respectively. The change in our contract assets during the three months ended March 31, 2018 were not material. The current and long-term portion of deferred contract costs are included in other current assets and other assets, net, respectively, in our condensed consolidated balance sheet.2021:


	Three months ended June 30, 2022		Six months ended June 30, 2022
	in millions

Revenue	$	1,249.3	$	2,496.9
Net loss attributable to Liberty Latin America shareholders	$	(484.2)	$	(412.5)

~~Liberty Latin America Ltd.~~

~~Notes to Condensed Consolidated Financial Statements – (Continued)~~

~~March 31, 2018~~

~~(unaudited)~~

~~Deferred Revenue~~

We record deferred revenue when we have received payment prior to transferring goods or services to a customer. Deferred revenue primarily relates to (i) advanced payments on fixed subscription services and mobile airtime services and (ii) deferred installation and other upfront fees. Our aggregate current and long-term deferred revenue as of March 31, 2018 and December 31, 2017, was $417 million and(5) $397 million, respectively. Long-term deferred revenue is included in other long-term liabilities in our condensed consolidated balance sheets. We recorded an aggregate of $19 million of current and long-term deferred revenue on January 1, 2018 upon the adoption of ASU 2014-09. The remaining change in the current portion and long-term deferred revenue balances during the three months ended March 31, 2018 were not material.Derivative Instruments

~~Revenue Recognition~~

~~General~~.Most of our fixed and mobile residential contracts are not enforceable or do not contain substantive early termination penalties. Accordingly, revenue relating to these customers is recognized on a basis consistent with these customers that are not subject to contracts.

~~Subscription Revenue – Fixed Networks.~~ We recognize revenue from video, broadband internet and fixed-line telephony services over our fixed networks to customers in the period the related subscription services are provided. Installation or other upfront fees related to services provided over our fixed networks are generally deferred and recognized as subscription revenue over the contractual period, or longer if the upfront fee results in a material renewal right.

We may also sell video, broadband internet and fixed-line telephony services to our customers in bundled packages at a rate lower than if the customer purchased each product on a standalone basis. Arrangement consideration from bundled packages generally is allocated proportionally to the individual service based on the relative standalone price for each respective product or service.

~~Mobile Revenue – General.~~ ~~Consideration from mobile contracts is allocated to airtime services and handset sales based on the relative standalone prices of each performance obligation.~~

~~Mobile Revenue – Airtime Services.~~ We recognize revenue from mobile services in the period the related services are provided. Payments received from prepay customers are recorded as deferred revenue prior to the commencement of services and are recognized as revenue as the services are rendered or usage rights expire.

~~Mobile Revenue – Handset Revenue.~~ ~~Arrangement consideration allocated to handsets is recognized as revenue when the goods have been transferred to the customer.~~

~~B2B Revenue – Installation Revenue.~~ We defer upfront installation and certain nonrecurring fees received on B2B contracts where we maintain ownership of the installed equipment. The deferred fees are amortized into revenue on a straight-line basis over the term of the arrangement or the expected period of performance.

~~Sub-sea Network Revenue – Long-term Capacity Contracts.~~ We enter into certain long-term capacity contracts with customers where the customer either pays a fixed fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. We assess whether prepaid capacity contracts contain a significant financing component. If the financing component is significant, interest expense is accreted over the life of the contract using the effective interest method. The revenue associated with prepaid capacity contracts is deferred and recognized on a straight-line basis over the life of the contract.


~~(4)~~	~~Acquisitions~~

~~Pending Acquisition~~

~~Cabletica. On February 12, 2018, we entered into a definitive agreement to acquire 80% of Costa Rican cable operator, “Cabletica,” which is part of Televisora de Costa Rica S.A. in an all cash transaction. In the transaction, Cabletica was valued at an enterprise value in Costa Rican Colon (CRC~~) of CRC 143 billion ($252 million). We intend to finance the acquisition of the 80% equity stake in Cabletica through a combination of incremental debt and existing liquidity. The current owners of Cabletica will retain the remaining 20% interest. The transaction is subject to customary closing adjustments and conditions, including regulatory approvals, and is expected to close during the second half of 2018.

~~Liberty Latin America Ltd.~~

~~Notes to Condensed Consolidated Financial Statements – (Continued)~~

~~March 31, 2018~~

~~(unaudited)~~

~~2017 Acquisition~~

~~Carve-out Entities.~~ ~~On May 16, 2016, Liberty Global acquired C&W (the~~ ~~C&W Acquisition), which was contributed to our company as part of the Split-Off. In connection with the C&W Acquisition and C&W’s acquisition of Columbus International Inc. and its subsidiaries in 2015 (the~~ ~~Columbus Acquisition), certain entities (the~~ ~~Carve-out Entities) that hold licenses granted by the U.S. Federal Communications Commission (the~~ ~~FCC) were transferred to entities not controlled by C&W (collectively,~~ ~~New Cayman~~).The arrangements with respect to the Carve-out Entities, which were executed in connection with the Columbus Acquisition and the C&W Acquisition, contemplated that upon receipt of regulatory approval, we would acquire the Carve-out Entities. On March 8, 2017, the FCC granted its approval for Liberty Global’s acquisition of the Carve-out Entities. Accordingly, on April 1, 2017, subsidiaries of C&W acquired the Carve-out Entities (the ~~C&W Carve-out Acquisition) for an aggregate purchase price of $86 million, which represents the amount due under notes receivable that were exchanged for the equity of the Carve-out Entities.~~


~~(5)~~	~~Derivative Instruments~~

In general, we seek to enter into derivative instruments to protect against (i) increases in the interest rates on our variable-rate debt and (ii) foreign currency movements, particularly with respect to borrowings that are denominated in a currency other than the functional currency of the borrowing entity. In this regard, through our subsidiaries, we have entered into various derivative instruments to manage interest rate exposure and foreign currency exposure with respect to the U.S. dollar ($~~), the British pound sterling (~~£~~), the Chilean peso (CLP), the Jamaican dollar (JMD) and the Colombian peso (COP). With the exception of certain foreign currency forward contracts, we~~movements. We do not currently apply hedge accounting to our derivative instruments. Accordingly, changes in the fair values ~~of most~~ of our derivative instruments are recorded in realized and unrealized gains or losses on derivative instruments in our condensed consolidated statements of operations.

The following table provides details of the fair values of our derivative instrument assets and liabilities:


	June 30, 2023						December 31, 2022
	Current (a)		Long-term (a)		Total		Current (a)		Long-term (a)		Total
	in millions
Assets (b):
Interest rate derivative contracts	$	133.1	$	212.0	$	345.1	$	91.3	$	224.2	$	315.5
Other	0.4		—		0.4		—		—		—
Total	$	133.5	$	212.0	$	345.5	$	91.3	$	224.2	$	315.5

Liabilities (b):
Interest rate derivative contracts	$	36.3	$	35.3	$	71.6	$	30.4	$	—	$	30.4
Foreign currency forward contracts	16.2		4.3		20.5		11.9		—		11.9
Total	$	52.5	$	39.6	$	92.1	$	42.3	$	—	$	42.3

(a)Our long-term derivative assets, current derivative liabilities and long-term derivative liabilities are included in other assets, net, other accrued and current liabilities and other long-term liabilities, respectively, in our condensed consolidated balance sheets.

March 31, 2018 December 31, 2017
Current (a) Long-term (a) Total Current (a) Long-term (a) Total
in millions
Assets:
Cross-currency and interest rate derivative contracts (b) $ 16.5
$ 100.6
$ 117.1
$ 2.9
$ 38.4
$ 41.3
Foreign currency forward contracts —
0.4
0.4
—
—
—
Total $ 16.5
$ 101.0
$ 117.5
$ 2.9
$ 38.4
$ 41.3

Liabilities:
Cross-currency and interest rate derivative contracts (b) $ 62.1
$ 125.2
$ 187.3
$ 29.4
$ 51.9
$ 81.3
Foreign currency forward contracts 13.4
—
13.4
12.8
—
12.8
Total $ 75.5
$ 125.2
$ 200.7
$ 42.2
$ 51.9
$ 94.1


~~(a)~~	Our current derivative assets, current derivative liabilities, long-term derivative assets and long-term derivative liabilities are included in other current assets, other accrued and current liabilities, other assets, net, and other long-term liabilities, respectively, in our condensed consolidated balance sheets.

~~(b)~~

We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 8). The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in a net gain (loss) of ($12 million) and $7 million during the three months ended March 31, 2018 and 2017, respectively. These amounts are included in realized and unrealized losses on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 6.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

(b)We consider credit risk relating to our nonperformance and the nonperformance of our counterparties in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 8) and are recorded in realized and unrealized gains or losses on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 6.

The derivative assets set forth in the table above exclude our Weather Derivatives as they are not accounted for at fair value. The premium payments associated with our Weather Derivatives are included in other current assets, net, in our condensed consolidated balance sheets.

The details of our realized and unrealized ~~losses~~gains on derivative instruments, net, are as follows:

Three months ended March 31,
2018 2017
in millions

Cross-currency and interest rate derivative contracts $ (38.9 ) $ (25.5 )
Foreign currency forward contracts (2.6 ) (1.8 )
Total $ (41.5 ) $ (27.3 )


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Interest rate and cross-currency derivative contracts	$	75.2	$	276.1	$	39.7	$	258.5
Foreign currency forward contracts and other	(3.1)		15.0		(18.9)		6.7
Weather Derivatives	(7.7)		(7.8)		(15.5)		(15.6)
Total	$	64.4	$	283.3	$	5.3	$	249.6

The following table sets forth the classification of the net cash ~~outflows~~inflows of our derivative instruments:

Three months ended March 31,
2018 2017
in millions

Operating activities $ (11.7 ) $ (10.7 )
Investing activities (1.7 ) (1.2 )
Total $ (13.4 ) $ (11.9 )


	Six months ended June 30,
	2023		2022
	in millions

Operating activities	$	30.5	$	(7.8)
Investing activities	—		2.8
Financing activities	9.8		12.4
Total	$	40.3	$	7.4

Counterparty Credit Risk

We are exposed to the risk that the counterparties to the derivative instruments of our borrowing groups will default on their obligations to us. We manage these credit risks through the evaluation and monitoring of the creditworthiness of, and concentration of risk with, the respective counterparties. In this regard, credit risk associated with our derivative instruments is spread across a relatively broad counterparty base of banks and financial institutions. Collateral has not been posted by either party under the derivative instruments of our borrowing groups. At ~~March 31, 2018,~~June 30, 2023, our exposure to counterparty credit risk associated with our derivative instruments, as set forth in the assets and liabilities table above, included derivative assets with an aggregate fair value of~~$54~~ $274 million.

Each of our borrowing groups has entered into derivative instruments under agreements with each counterparty that contain master netting arrangements that are applicable in the event of early termination by either party to such derivative instrument. The master netting arrangements under each of these master agreements are limited to the derivative instruments governed by the relevant master agreement within each individual borrowing group and are independent of similar arrangements of our other subsidiary borrowing groups.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

Details of our Derivative Instruments

~~Cross-currency Derivative Contracts~~

As noted above, we are exposed to foreign currency exchange rate risk in situations where our debt is denominated in a currency other than the functional currency of the operations whose cash flows support our ability to repay or refinance such debt. Although we generally seek to match the denomination of our subsidiaries’ borrowings with the functional currency of the operations that are supporting the respective borrowings, market conditions or other factors may cause us to enter into borrowing arrangements that are not denominated in the functional currency of the underlying operations (unmatched debt). Our policy is generally to provide for an economic hedge against foreign currency exchange rate movements, whenever possible and when cost effective to do so, by using derivative instruments to synthetically convert unmatched debt into the applicable underlying currency.~~The following table sets forth the total notional amounts and the related weighted average remaining contractual lives of our cross-currency swap contracts at March 31, 2018:~~

Borrowing group
Notional amount
due from
counterparty

Notional amount
due to
counterparty
Weighted average remaining life
in millions in years

C&W $ 108.3
JMD 13,817.5
4.8
$ 35.4
COP 106,000.0
4.3
£ 146.7
$ 194.3
1.0

VTR Finance $ 1,400.0
CLP 951,390.0
4.2

Interest Rate Derivative Contracts

In connection with the phase-out of LIBOR, certain interest rate swap contracts, interest rate floors and interest rate caps were amended to reference Adjusted Term SOFR for interest periods commencing after June 30, 2023. We also entered into forward-starting basis swap contracts that reference Adjusted Term SOFR, as further described below.

Interest Rate Swaps

As noted above, we enter into interest rate swaps to protect against increases in the interest rates on our variable-rate debt. Pursuant to these derivative instruments, we typically pay fixed interest rates and receive variable interest rates on specified notional amounts. The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our interest rate swap contracts at ~~March 31, 2018:~~June 30, 2023:


Borrowing group	Notional amount due from counterparty		Weighted average remaining life
	in millions		in years

C&W (a)	$	2,100.0	5.1

Liberty Puerto Rico	$	500.0	5.3

Borrowing group Notional amount due from counterparty Weighted average remaining life
in millions in years

C&W (a) $ 2,975.0
6.1

Liberty Puerto Rico $ 675.0
3.0


~~(a)~~	~~Includes forward-starting derivative instruments.~~

(a)Includes embedded floors of 0% on certain contracts.

Basis Swaps

Basis swaps involve the exchange of attributes used to calculate our floating interest rates, including (i) the benchmark rate, (ii) the underlying currency and/or (iii) the borrowing period. We typically enter into these swaps to optimize our interest rate profile based on our current evaluations of yield curves, our risk management policies and other factors. ~~At March 31, 2018,~~The following table sets forth the total U.S. dollar ~~equivalent~~equivalents of the notional amounts ~~of these derivative instruments was $3,750 million~~ and the related weighted average remaining contractual ~~life~~lives of our basis swap contracts ~~was 1.2~~at June 30, 2023:


Borrowing group	Notional amount due from counterparty		Weighted average remaining life
	in millions		in years

C&W (a)	$	4,200.0	0.8

Liberty Puerto Rico (b)	$	1,240.0	0.8

(a)Comprises $2.1 billion notional amount of contracts that reference LIBOR and have a maturity date of July 15, 2023, and $2.1 billion notional amount of forward-starting contracts that reference Adjusted Term SOFR.

(b)Comprises $620 million notional amount of contracts that reference LIBOR and have a maturity date of July 15, 2023, $620 million notional amount of forward-starting contracts that reference Adjusted Term SOFR.

Interest Rate Floors

Interest rate floors provide protection against interest rates falling below a pre-set level. At June 30, 2023, our Liberty Puerto Rico borrowing group had an interest rate floor with a total notional amount of $620 million and a remaining contractual life of 5.3 years. ~~At March 31, 2018, our basis swaps were all held by subsidiaries of our C&W borrowing group.~~

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

Interest Rate Caps

~~We enter into~~Interest rate caps provide protection against interest rates rising above a pre-set level. At June 30, 2023, our Liberty Puerto Rico borrowing group had interest rate ~~cap agreements that lock in a maximum interest rate if variable rates rise, but also allow our company to benefit from declines in market rates. At March 31, 2018, the~~caps with total ~~U.S. dollar~~ notional amounts of ~~our interest rate caps was $436~~$120 million ~~all of which are held by Liberty Puerto Rico.~~

~~Impact of Derivative Instruments on Borrowing Costs~~

~~The~~and a remaining weighted average ~~impact~~contractual life of ~~the derivative instruments, excluding forward-starting derivative instruments, on our borrowing costs at March 31, 2018 was as follows:~~



~~Borrowing group~~	~~Increase (decrease) to borrowing costs~~

~~C&W~~	~~0.43~~	%
~~VTR Finance~~	~~(0.52~~	)%
~~Liberty Puerto Rico~~	~~0.44~~	%
~~Liberty Latin America borrowing groups~~	~~0.22~~	%

5.3 years.

Foreign Currency Forwards Contracts

We enter into foreign currency forward contracts with respect to non-functional currency exposure. ~~As of March 31, 2018, the total U.S. dollar equivalent of the notional amount of~~At June 30, 2023, our Liberty Costa Rica borrowing group had foreign currency forward contracts ~~was$228~~with total notional amounts due from and to counterparties of $198 million ~~all~~and CRC 120 billion, respectively, with a weighted average remaining contractual life of ~~which are held by subsidiaries of our VTR borrowing group.~~0.6 years.

(6) Fair Value Measurements


~~(6)~~	~~Fair Value Measurements~~

General

We use the fair value method to account for most of our derivative ~~instruments and the available-for-sale method to account for our investment in the United Kingdom (U.K.) Government Gilts.~~instruments. The reported fair values of our derivative instruments ~~as of March 31, 2018~~ likely will not represent the value that will be paid or received upon the ultimate settlement or disposition of these assets and liabilities, as we expect that the values realized generally will be based on market conditions at the time of settlement, which ~~may occur~~generally occurs at the maturity of the derivative instrument or at the time of the repayment or refinancing of the underlying debt instrument.

U.S. GAAP provides for a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. We record transfers of assets or liabilities into or out of Levels 1, 2 or 3 at the beginning of the quarter during which the transfer occurred. During the three months ended March 31, 2018, no such transfers were made.

Recurring Fair Value Measurements

Derivatives

In order to manage our interest rate and foreign currency exchange risk, we have entered into various derivative instruments, as further described in note 5. The recurring fair value measurements of these derivative instruments are determined using discounted cash flow models. Most of the inputs to these discounted cash flow models consist of, or are derived from, observable Level 2 data for substantially the full term of these derivative instruments. This observable data mostly includes interest rate futures and swap rates, which are retrieved or derived from available market data. Although we may extrapolate or interpolate this data, we do not otherwise alter this data in performing our valuations. We incorporate a credit risk valuation adjustment in our fair value measurements to estimate the impact of both our own nonperformance risk and the nonperformance risk of our counterparties. Our and our counterparties’ credit spreads represent our most significant Level 3 inputs, and these inputs are used to derive the credit risk valuation adjustments with respect to these instruments. As we would not expect changes in our or our counterparties’ credit spreads to have a significant impact on the valuations of these instruments, we have determined that these valuations fall under Level 2 of the fair value hierarchy. ~~Due~~Our credit risk valuation adjustments with respect to ~~the lack~~our interest rate derivative contracts are further explained in note 5.

Non-recurring Fair Value Measurements

Fair value measurements may also be used for purposes of ~~Level 2 inputs for the valuation of the U.S dollar to the Jamaican dollar cross-currency swaps (the~~ ~~Sable Currency Swaps) held by a subsidiary of C&W, we believe this valuation falls under Level 3 of the fair value hierarchy. The Sable Currency Swaps are~~non-recurring valuations performed in connection with our ~~only Level 3 financial instruments. The fair values of the Sable Currency Swaps at March 31, 2018~~acquisition accounting and ~~December 31, 2017 were $27 millionand $22 million, respectively, which are included in other~~impairment assessments.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

Acquisition Accounting

During the second quarter of 2023, we finalized our acquisition accounting for the Claro Panama Acquisition, which did not result in any material changes to our opening balance sheet associated with the Claro Panama Acquisition. For additional information relating to the opening balance sheet for the Claro Panama Acquisition, see note 4.

Impairment Assessments

The nonrecurring valuations associated with impairment assessments, which use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy, primarily include the valuation of reporting units for the purpose of testing for goodwill impairment. Unless a reporting unit has a readily determinable fair value, we estimate the fair value of the reporting unit using either a market-based or income-based approach.

Goodwill

~~long-term liabilities~~During the second quarter of 2022, primarily due to significant increases in interest rates, we performed goodwill impairment analyses of all of our ~~condensed consolidated balance sheets. The change in~~reporting units. We used an income approach to determine the estimated fair values of these reporting units. Under this approach, we utilized a discounted cash flow model as the valuation technique to estimate the fair values of the ~~Sable Currency Swaps resulted in net losses~~reporting units from a market participant’s perspective. This approach uses certain inputs and assumptions that require estimates and judgments, including forecasted cash flows and an appropriate discount rate. Forecasts of ~~$5 million and $4 million during~~future cash flows are largely based on our assumptions using Level 3 inputs, which we consider to be consistent with a market participant’s approach. We used the ~~three months ended March 31, 2018 and 2017, respectively, which are reflected in realized and unrealized losses on derivative instruments, net, in our condensed consolidated statements~~weighted-average cost of ~~operations. Our credit risk valuation adjustments with respect~~capital for each reporting unit as the basis for the discount rate to ~~our cross-currency and interest rate swaps are quantified and further explained in note 5.~~

~~Our investment in~~establish the ~~U.K. Government Gilts falls under Level 1~~present value of the ~~fair value hierarchy. At March 31, 2018~~expected cash flows for the respective reporting unit. The inputs for our weighted average cost of capital calculations include Level 2 and ~~December 31, 2017,~~Level 3 inputs, generally derived from third-party pricing services. Based upon the ~~carrying values~~results of the aforementioned analysis, we recognized impairment charges associated with certain reporting units of our ~~investment in the U.K. Government Gilts, which are included in other assets, net, in our condensed consolidated balance sheets, was $33 million and $37 million, respectively.~~C&W Caribbean segment. For additional information regarding goodwill impairment charges resulting from these impairment analyses, see note 7.


~~(7)~~	(7) Long-lived Assets

Goodwill

Changes in the carrying amount of our goodwill ~~during the three months ended March 31, 2018~~ are set forth below:

January 1,
2018
Foreign
currency
translation
adjustments
March 31,
2018
in millions

C&W $ 4,962.5
$ (18.3 ) $ 4,944.2
VTR 433.4
8.3
441.7
Liberty Puerto Rico 277.7
—
277.7
Total $ 5,673.6
$ (10.0 ) $ 5,663.6


	January 1, 2023		Acquisitions and related adjustments		Foreign currency translation adjustments and other		June 30, 2023
	in millions

C&W Caribbean	$	1,220.4	$	—	$	(1.8)	$	1,218.6
C&W Panama	617.1		—		—		617.1
Liberty Networks	654.0		(5.7)		3.9		652.2
Liberty Puerto Rico	501.1		—		—		501.1
Liberty Costa Rica	428.7		5.7		35.6		470.0
Total	$	3,421.3	$	—	$	37.7	$	3,459.0

Based on the results of our ~~October 1, 2017~~prior-year goodwill impairment test, a hypothetical decline of 20% or more in the fair value of C&W reporting units that carry a goodwill balance or the Liberty Puerto Rico reporting unit could result in the need to record additional goodwill impairment charges. If,if, among other factors, (i) our equity values were to decline significantly, (ii) we experience additional adverse impacts associated with macroeconomic factors, including increases in our estimated weighted average cost of capital, or ~~(ii)~~(iii) the adverse impacts ofstemming from competition, economic, ~~competitive,~~ regulatory or other factors ~~including macro-economic and demographic trends,~~ were to cause ~~C&W’s or Liberty Puerto Rico’s~~our results of operations or cash flows to be worse than currently anticipated, we could conclude in future periods that additional impairment charges of certain reporting units are required in order to reduce the carrying values of goodwill. Any such impairment charges could be significant.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

June 30, 2023

(unaudited)

During the second quarter of 2022, we recorded a $555 million impairment of goodwill ~~cable television franchise rights~~within certain reporting units of our C&W Caribbean segment. This impairment was driven primarily by macroeconomic factors, including higher interest rates, that drove an increase in the discount rates used to value these reporting units, and ~~to a lesser extent,~~is recorded in impairment, restructuring and other ~~long-lived assets~~operating items, net, in our condensed consolidated statement of ~~these entities.~~operations.

Our accumulated goodwill impairments were $2,784 millionat each of June 30, 2023 and December 31, 2022.

Property and Equipment, Net

The details of our property and equipment and the related accumulated depreciation are set forth below:

March 31,
2018 December 31,
2017
in millions

Distribution systems $ 4,047.2
$ 3,878.4
Customer premises equipment 1,438.8
1,382.8
Support equipment, buildings and land 1,338.6
1,306.3
6,824.6
6,567.5
Accumulated depreciation (2,588.4 ) (2,398.3 )
Total $ 4,236.2
$ 4,169.2


	June 30, 2023		December 31, 2022
	in millions

Distribution systems	$	4,703.4	$	4,419.1
Support equipment, buildings, land and CIP	2,241.9		2,232.7
CPE	1,001.1		919.0
	7,946.4		7,570.8
Accumulated depreciation	(3,688.9)		(3,277.2)
Total	$	4,257.5	$	4,293.6

During the ~~three~~six months ended ~~March 31, 2018~~June 30, 2023 and ~~2017,~~2022, we recorded non-cash increases to our property and equipment related to vendor financing arrangements aggregating ~~$21~~$72 million and ~~$14~~$68 million, respectively.

~~Liberty Latin America Ltd.~~

~~Notes to Condensed Consolidated Financial Statements – (Continued)~~

~~March 31, 2018~~

~~(unaudited)~~

Intangible Assets Subject to Amortization, Net

The details of our intangible assets subject to amortization and the related accumulated amortization are set forth below:


	June 30, 2023		December 31, 2022
	in millions

Customer relationships	$	1,336.1	$	1,464.4
Licenses and other	279.9		278.9
	1,616.0		1,743.3
Accumulated amortization	(1,001.7)		(1,055.2)
Total	$	614.3	$	688.1

March 31,
2018 December 31,
2017
in millions
Gross carrying amount:
Customer relationships $ 1,459.3
$ 1,415.1
Licenses and other 184.2
199.8
Total gross carrying amount 1,643.5
1,614.9
Accumulated amortization:
Customer relationships (374.6 ) (284.2 )
Licenses and other (17.3 ) (14.5 )
Total accumulated amortization (391.9 ) (298.7 )
Net carrying amount $ 1,251.6
$ 1,316.2
Intangible Assets Not Subject to Amortization

The details of our intangible assets not subject to amortization are set forth below:


	June 30, 2023		December 31, 2022
	in millions

Spectrum licenses	$	1,051.0	$	1,051.0
Cable television franchise rights and other	541.8		541.8
Total	$	1,592.8	$	1,592.8


~~(8)~~	~~Debt and Capital Lease Obligations~~

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

June 30, 2023

(unaudited)

(8) Debt and Finance Lease Obligations

The U.S. dollar equivalents of the components of our debt are as follows:

March 31, 2018 Estimated fair value (c) Principal Amount
Weighted
average
interest
rate (a) Unused borrowing capacity (b)
Borrowing currency US $ equivalent March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017

in millions

C&W Credit Facilities 4.95 % $ 746.5
$ 746.5
$ 2,243.7
$ 2,216.4
$ 2,235.9
$ 2,212.2
C&W Notes 7.09 % —
—
1,712.3
1,749.7
1,655.9
1,648.4
VTR Finance Senior Secured Notes 6.88 % —
—
1,452.3
1,479.6
1,400.0
1,400.0
VTR Credit Facility — % (d) 232.9
—
—
—
—
LPR Bank Facility 5.52 % —
—
951.1
951.8
982.5
982.5
Vendor financing (e) 4.43 % —
—
149.1
137.4
149.1
137.4
Total debt before premiums, discounts and deferred financing costs 6.00 % $ 979.4
$ 6,508.5
$ 6,534.9
$ 6,423.4
$ 6,380.5

~~Liberty Latin America Ltd.~~

~~Notes to Condensed Consolidated Financial Statements – (Continued)~~

~~March 31, 2018~~

~~(unaudited)~~


	June 30, 2023						Estimated fair value (c)				Principal amount
	Weighted average interest rate (a)		Unused borrowing capacity (b)
			Borrowing currency		US $ equivalent		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022

			in millions

Convertible Notes (d)	2.00	%	—		$	—	$	287.1	$	357.4	$	303.1	$	402.5
C&W Notes	6.55	%	—		—		1,525.5		1,591.6		1,715.0		1,715.0
C&W Credit Facilities	7.06	%	(e)		724.4		2,613.6		2,505.0		2,664.6		2,605.2
LPR Senior Secured Notes	6.08	%	—		—		1,787.5		1,772.7		1,981.0		1,981.0
LPR Credit Facilities	8.94	%	$	172.5	172.5		616.9		613.8		620.0		620.0
LCR Credit Facilities (f)	10.88	%	$	60.0	60.0		445.3		382.9		450.0		419.3
Vendor financing and other (g)	7.40	%	—		—		300.2		223.1		300.2		223.1
Total debt before premiums, discounts and deferred financing costs	6.89	%			$	956.9	$	7,576.1	$	7,446.5	$	8,033.9	$	7,966.1

The following table provides a reconciliation of total debt before premiums, discounts and deferred financing costs to total debt and ~~capital~~finance lease obligations:


	June 30, 2023		December 31, 2022
	in millions

Total debt before premiums, discounts and deferred financing costs	$	8,033.9	$	7,966.1
Premiums, discounts and deferred financing costs, net	(83.5)		(94.0)
Total carrying amount of debt	7,950.4		7,872.1
Finance lease obligations	8.0		8.6
Total debt and finance lease obligations	7,958.4		7,880.7
Less: Current maturities of debt and finance lease obligations	(315.5)		(226.9)
Long-term debt and finance lease obligations	$	7,642.9	$	7,653.8

(a)Represents the weighted average interest rate in effect at June 30, 2023 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.

(b)Unused borrowing capacity represents the maximum availability under the applicable facility at June 30, 2023 without regard to covenant compliance calculations or other conditions precedent to borrowing. At June 30, 2023, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after completion of the June 30, 2023 compliance reporting requirements. At June 30, 2023, except as may be limited by tax and legal considerations, the presence of noncontrolling interests, foreign currency exchange restrictions with respect to certain C&W subsidiaries and other factors, there were no restrictions on the respective subsidiary’s ability to upstream cash from this availability to Liberty Latin America or its subsidiaries or other equity holders.

March 31, 2018 December 31, 2017

in millions

Total debt before premiums, discounts and deferred financing costs $ 6,423.4
$ 6,380.5
Premiums, discounts and deferred financing costs, net (20.8 ) (26.5 )
Total carrying amount of debt 6,402.6
6,354.0
Capital lease obligations 16.8
17.5
Total debt and capital lease obligations 6,419.4
6,371.5
Less: Current maturities of debt and capital lease obligations (212.3 ) (263.3 )
Long-term debt and capital lease obligations $ 6,207.1
$ 6,108.2

~~(a)~~

Represents the weighted average interest rate in effect at March 31, 2018 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. Including the effects of derivative instruments, original issue premiums or discounts and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 6.30% at March 31, 2018. For information regarding our derivative instruments, see note 5.

~~(b)~~

Unused borrowing capacity represents the maximum availability under the applicable facility at March 31, 2018 without regard to covenant compliance calculations or other conditions precedent to borrowing. At March 31, 2018, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after consideration of the completion of the March 31, 2018 compliance reporting requirements, which include leverage-based payment tests and leverage covenants. At March 31, 2018, there were no restrictions on the respective subsidiary’s ability to make loans or distributions from this availability to Liberty Latin America or its subsidiaries or other equity holders.

~~(c)~~

The estimated fair values of our debt instruments are determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy). The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors. For additional information regarding fair value hierarchies, see note 6.


~~(d)~~	~~The VTR Credit Facility is the senior secured credit facility of VTR and certain of its subsidiaries and comprises a $160 million facility (the~~ ~~VTR Dollar Credit Facility) and a CLP 44 billion ($73 million) facility (the~~ ~~VTR Peso Credit Facility), each of which were undrawn at March 31, 2018.~~

~~(e)~~

Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our property and equipment additions and, to a lesser extent, certain of our operating expenses. These obligations are generally due within one year and include value-added taxes (~~VAT)~~ that were paid on our behalf by the vendor. Our operating expenses for the three months ended March 31, 2018 and 2017 include $32 million and $10 million, respectively, that were financed by an intermediary and are reflected as a hypothetical cash outflow within net cash provided by operating activities and a hypothetical cash inflow within net cash provided by financing activities in our condensed consolidated statements of cash flows. Repayments of vendor financing obligations are included in repayments of debt and capital lease obligations in our condensed consolidated statements of cash flows.

~~2018 Financing Transactions~~

On January 6, 2018, C&W Panama issued $100 million of subordinated debt. The term loan bears interest at 4.35%, payable on a quarterly basis, and matures in January 2023. The proceeds from the term loan were primarily used to repay existing C&W Panama debt.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

~~On February 7, 2018, C&W entered into~~(c)The estimated fair values of our debt instruments are determined using the applicable bid prices (mostly Level 1 of the fair value hierarchy) or from quoted prices for similar instruments in active markets adjusted for the estimated credit spreads of the applicable entity, to the extent available, and other relevant factors (Level 2 of the fair value hierarchy). For additional information regarding fair value hierarchies, see note 6.

(d)The interest rate reflects the stated rate of the Convertible Notes. The effective interest rate of the Convertible Notes is 6.7%, which considers the impact of a ~~$1,875~~discount recorded in connection with the value ascribed to the instrument’s conversion option. At June 30, 2023, the carrying value of the Convertible Notes was $289 million ~~principal amount term loan facility (the~~ and the unamortized debt discount on the Convertible Notes was $14 million.

(e)~~C&W Term Loan B-4 Facility) at the London Interbank Offered Rate (LIBOR) plus 3.25%, subject to a LIBOR floor of 0.0%.~~ The C&W Credit Facilities unused borrowing capacity comprise certain U.S. dollar, Trinidad & Tobago dollar and JMD revolving credit facilities.

(f)The LCR Credit Facilities at December 31, 2022 are comprised of certain CRC and U.S. dollar term loans and a U.S. dollar revolving credit facility. For information on the LCR Credit Facilities at June 30, 2023, see Financing Activity below.

(g)Primarily represents $294 million and $217 million at June 30, 2023 and December 31, 2022, respectively, owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our operating expenses and property and equipment additions. These obligations are generally due within one year and include VAT that were paid on our behalf by the vendor. Our operating expenses include $94 million and $79 million for the six months ended June 30, 2023 and 2022, respectively, that were financed by an intermediary and are reflected on the borrowing date as a cash outflow within net cash provided by operating activities and a cash inflow within net cash used by financing activities in our condensed consolidated statements of cash flows. Repayments of vendor financing obligations are included in payments of principal amounts of debt and finance lease obligations in our condensed consolidated statements of cash flows.

Financing Activity

During May 2023, the terms of the agreements underlying the C&W Credit Facilities and the LPR Credit Facilities were amended, which resulted in (i) the replacement of LIBOR-based benchmark rates with Adjusted Term ~~Loan B-4 Facility was issued at 99.875% of par with a maturity date of January 31, 2026. General terms associated with~~SOFR for the C&W Term Loan ~~B-4~~B-5 Facility, ~~are substantially the same as those included in “General Information” in note 9 to our 2017 Form 10-K. The net proceeds of~~ the C&W Term Loan ~~B-4~~B-6 Facility, ~~were used to repay in full the $1,825 million outstanding principal amount of the C&W Term Loan B-3 Facility and repay $40 million drawn under~~ the C&W Revolving Credit Facility. The exchange in principal amounts of $1,825 million was treated as a non-cash transaction in our condensed consolidated statement of cash flows. In connection with this transaction, C&W recognized a loss on debt modification and extinguishment of $13 million, which representsFacility, the ~~write-off of unamortized discounts and deferred financing costs.~~

~~On March 7, 2018, we amended and restated the credit agreement originally dated May 16, 2016, as amended and restated as of May 26, 2017, providing for the additional C&W~~2028 LPR Term Loan ~~B-4 Facility~~ and ~~a $625 million revolving credit facility (the~~ ~~C&W~~the LPR Revolving Credit Facility). for interest periods commencing after June 30, 2023, (ii) the modification of the provisions for determining an alternative rate of interest upon the occurrence of certain events relating to the availability of interest rate benchmarks and (iii) certain conforming changes. The credit adjustment spreads applicable to the aforementioned debt instruments will be 0.11448%, 0.26161% and 0.42826% for interest periods of one, three and six months, respectively.

~~The details~~In the tables below, non-cash activity relates to borrowings that did not pass through our bank accounts, as financing proceeds from the issuance of ~~our borrowings under~~debt were used to directly repay some or all of the ~~C&W Credit Facilities as of March 31, 2018 are summarized in~~outstanding debt instruments within the ~~following table:~~same borrowing group.

C&W Credit Facilities Maturity Interest rate
Facility amount
(in borrowing
currency)
Outstanding principal amount
Unused
borrowing
capacity

Carrying
value (a)
in millions

C&W Term Loan B-4 Facility January 31, 2026 LIBOR + 3.25% $ 1,875.0
$ 1,875.0
$ —
$ 1,869.2
C&W Revolving Credit Facility June 30, 2023 LIBOR + 3.25% $ 625.0
10.0
615.0
10.0
C&W Regional Facilities various dates ranging from 2018 to 2038 4.00% (b) $ 482.4
350.9
131.5
349.9
Total $ 2,235.9
$ 746.5
$ 2,229.1


~~(a)~~	~~Amounts are net of discounts and deferred financing costs, where applicable.~~


~~(b)~~	~~Represents a weighted average rate for all C&W Regional Facilities.~~

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

During the six months ended June 30, 2023 and 2022, borrowings related to significant credit facilities we drew down, entered into or amended, are as follows:



Period	Borrowing group/ Borrower	Instrument	Issued at	Maturity	Interest rate	Borrowing currency		Non-cash component
						in millions

2023	C&W	Other	100%	(a)	6.483%	$	69.0	$	—

2023	Liberty Puerto Rico	LPR Revolving Credit Facility	N/A	March 15, 2027	LIBOR + 3.50%	$	30.0	$	—

2023	Liberty Costa Rica	2031 LCR Term Loan A	100%	January 15, 2031	10.875%	$	50.0	$	—
2023	Liberty Costa Rica	2031 LCR Term Loan B	100%	January 15, 2031	10.875%	$	400.0	$	—
2023	Liberty Costa Rica	LCR Revolving Credit Facility (b)	N/A	January 15, 2028	SOFR + 4.25%	$	—	N/A

2022	C&W	2028 CWP Term Loan	100%	January 18, 2028	4.25%	$	435.0	$	272.9
2022	C&W	CWP Revolving Credit Facility (c)	100%	January 18, 2027	SOFR + 3.75%	$	12.0	N/A

N/A – Not applicable.

(a)This borrowing is due in three annual installments beginning in May 2024.

(b)In January 2023, the LCR Revolving Credit Facility was amended and restated. The amended and restated $60 million LCR Revolving Credit Facility has a fee on unused commitments of 0.5% per year.

~~Maturities~~(c)The CWP Revolving Credit Facility has a fee on unused commitments of ~~Debt~~0.50%.

During the six months ended June 30, 2023 and ~~Capital Lease Obligations~~2022, we made certain repurchases or repayments on the following debt instruments:

~~Maturities~~


				Amount paid
Period	Borrowing group / Borrower	Instrument	Redemption price	Borrowing currency		USD equivalent (a)		Non-cash component
				USD in millions, CRC in billions

2023	Liberty Puerto Rico	LPR Revolving Credit Facility	100%	$	30.0	$	30.0	$	—

2023	Liberty Costa Rica	LCR Term Loan B-1 Facility	100%	$	276.7	$	276.7	$	—
2023	Liberty Costa Rica	LCR Term Loan B-2 Facility	100%	CRC	79.6	$	138.6	$	—
2023	Liberty Costa Rica	LCR Revolving Credit Facility	100%	$	8.0	$	8.0	$	—

2023	Liberty Latin America	Convertible Notes	(b)	$	93.6	$	93.6	$	—

2022	C&W	CWP Credit Facilities	100%	$	272.9	$	272.9	$	272.9

(a)Translated at the transaction date, as applicable.

(b)During 2023, we repurchased and cancelled $99 million original principal amount of ~~our debt and capital lease obligations as~~the Convertible Notes at a weighted average redemption price of ~~March 31, 2018 are presented below. Amounts presented below represent U.S. dollar equivalents based on March 31, 2018 exchange rates:~~

~~Debt:~~94.2%. In connection with these repurchases, we unwound $99 million of the related Capped Calls.

C&W VTR Liberty Puerto Rico Consolidated
in millions
Years ending December 31:
2018 (remainder of year) $ 94.6
$ 78.6
$ —
$ 173.2
2019 234.9
22.9
—
257.8
2020 24.9
—
40.0
64.9
2021 125.0
—
—
125.0
2022 765.2
—
850.0
1,615.2
2023 113.8
—
92.5
206.3
Thereafter 2,581.0
1,400.0
—
3,981.0
Total debt maturities 3,939.4
1,501.5
982.5
6,423.4
Premiums, discounts and deferred financing costs, net 11.2
(21.3 ) (10.7 ) (20.8 )
Total debt $ 3,950.6
$ 1,480.2
$ 971.8
$ 6,402.6
Current portion $ 98.6
$ 101.6
$ —
$ 200.2
Noncurrent portion $ 3,852.0
$ 1,378.6
$ 971.8
$ 6,202.4

~~Capital lease obligations:~~

C&W VTR Liberty Puerto Rico Consolidated
in millions
Year ending December 31:
2018 (remainder of year) $ 12.1
$ 0.2
$ —
$ 12.3
2019 3.1
0.4
—
3.5
2020 1.4
0.1
—
1.5
2021 0.1
—
—
0.1
Total principal and interest payments 16.7
0.7
—
17.4
Amounts representing interest (0.6 ) —
—
(0.6 )
Present value of net minimum lease payments $ 16.1
$ 0.7
$ —
$ 16.8
Current portion $ 11.8
$ 0.3
$ —
$ 12.1
Noncurrent portion $ 4.3
$ 0.4
$ —
$ 4.7

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

Maturities of Debt

Maturities of our debt as of June 30, 2023 are presented below. Amounts presented below represent U.S. dollar equivalents based on June 30, 2023 exchange rates:


	C&W		Liberty Puerto Rico		Liberty Costa Rica		Liberty Latin America (a)		Consolidated
	in millions
Years ending December 31:
2023 (remainder of year)	$	134.4	$	16.7	$	6.4	$	0.4	$	157.9
2024	149.7		15.7		—		303.4		468.8
2025	26.2		—		—		—		26.2
2026	23.6		—		—		—		23.6
2027	1,715.5		1,161.0		—		—		2,876.5
2028	1,997.7		620.0		—		—		2,617.7
Thereafter	593.2		820.0		450.0		—		1,863.2
Total debt maturities	4,640.3		2,633.4		456.4		303.8		8,033.9
Premiums, discounts and deferred financing costs, net	(29.0)		(25.0)		(15.3)		(14.2)		(83.5)
Total debt	$	4,611.3	$	2,608.4	$	441.1	$	289.6	$	7,950.4
Current portion	$	275.2	$	32.4	$	6.4	$	0.7	$	314.7
Noncurrent portion	$	4,336.1	$	2,576.0	$	434.7	$	288.9	$	7,635.7

(a)Represents the amount held by Liberty Latin America on a standalone basis plus the aggregate amount held by subsidiaries of Liberty Latin America that are outside our borrowing groups.

(9) Operating Leases

The following table provides details of our operating lease expense:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions
Operating lease expense:
Operating lease cost	$	32.3	$	28.6	$	65.4	$	55.9
Short-term lease cost	7.9		6.1		14.8		12.0
Total operating lease expense	$	40.2	$	34.7	$	80.2	$	67.9

Our operating lease expense is included in facility, provision, franchise and other expense, in other operating costs and expenses, in our condensed consolidated statements of operations.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

June 30, 2023

(unaudited)

Certain other details of our operating leases are set forth in the tables below:


	June 30, 2023		December 31, 2022
	in millions

Operating lease right-of-use assets (a)	$	491.7	$	550.8
Operating lease liabilities:
Current	$	89.1	$	76.7
Noncurrent	488.4		438.5
Total operating lease liabilities	$	577.5	$	515.2


Weighted-average remaining lease term	7.8 years		8.2 years

Weighted-average discount rate	7.6	%	7.5	%


	Six months ended June 30,
	2023		2022
	in millions

Operating cash outflows related to operating leases	$	70.4	$	58.7
Right-of-use assets obtained in exchange for new operating lease liabilities (b)	$	26.0	$	36.6

(a)During the three and six months ended June 30, 2023, we recorded impairment charges totaling $23 million and $42 million, respectively, associated with certain operating lease right-of-use assets, predominantly related to decommissioned tower leases at C&W Panama. These charges are included in impairment, restructuring and other, net, in our condensed consolidated statements of operations.

(b)Represents non-cash transactions associated with operating leases entered into during the six months ended June 30, 2023 and 2022, respectively.

Maturities of Operating Leases

Maturities of our operating lease liabilities as of June 30, 2023 are presented below. Amounts presented below represent U.S. dollar equivalents (in millions) based on June 30, 2023 exchange rates.


Years ending December 31:
2023 (remainder of year)	$	60.8
2024	115.1
2025	107.6
2026	96.6
2027	82.6
2028	75.1
Thereafter	251.5
Total operating lease liabilities on an undiscounted basis	789.3
Present value discount	(211.8)
Present value of operating lease liabilities	$	577.5

~~(9)~~

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

June 30, 2023

(unaudited)

(10) Unfulfilled Performance Obligations

We enter into certain long-term capacity contracts with customers where the customer either pays a fixed fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. We assess whether prepaid capacity contracts contain a significant financing component. If the financing component is significant, interest expense is accreted over the life of the contract using the effective interest method. The revenue associated with prepaid capacity contracts is deferred and generally recognized on a straight-line basis over the life of the contract. As of June 30, 2023, we haveapproximately $310 million of unfulfilled performance obligations relating to our long-term capacity contracts, primarily subsea contracts, that generally will be recognized as revenue over an average remaining life of four years.

(11) Programming and Other Direct Costs of Services

Programming and other direct costs of services include programming and copyright costs, interconnect and access costs, equipment costs, which primarily relate to costs of mobile handsets and other devices, and other direct costs related to our operations.

Our programming and other direct costs of services by major category are set forth below:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Programming and copyright	$	59.4	$	101.2	$	120.1	$	210.5
Interconnect	74.8		88.4		149.1		174.1
Equipment and other (a)	99.2		111.2		207.6		219.6
Total programming and other direct costs of services	$	233.4	$	300.8	$	476.8	$	604.2

(a)Includes amounts related to cost of goods sold from equipment sales of $67 million and $84 million for the three months ended June 30, 2023 and 2022, respectively, and $153 million and $170 million for the six months ended June 30, 2023 and 2022, respectively.

(12) Other Operating Costs and Expenses

Other operating costs and expenses set forth in the table below comprise the following cost categories:

•Personnel and contract labor-related costs, which primarily include salary-related and cash bonus expenses, net of capitalizable labor costs, and temporary contract labor costs;

•Network-related expenses, which primarily include costs related to network access, system power, core network, and CPE repair, maintenance and test costs;

•Service-related costs, which primarily include professional services, information technology-related services, audit, legal and other services;

•Commercial, which primarily includes sales and marketing costs, such as advertising, commissions and other sales and marketing-related costs, and customer care costs related to outsourced call centers;

•Facility, provision, franchise and other, which primarily includes facility-related costs, provision for bad debt expense, operating lease rent expense, franchise-related fees, bank fees, insurance, vehicle-related, travel and entertainment and other operating-related costs; and

•Share-based compensation expense that relates to (i) equity awards issued to our employees and Directors and (ii) certain bonus-related expenses that are paid in the form of equity.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

June 30, 2023

(unaudited)

Our other operating costs and expenses by major category are set forth below:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Personnel and contract labor	$	140.2	$	145.1	$	287.3	$	298.3
Network-related	61.6		78.9		128.4		161.5
Service-related	58.3		54.6		108.9		105.8
Commercial	44.6		58.1		89.1		123.6
Facility, provision, franchise and other	139.3		117.9		284.2		241.7
Share-based compensation expense	24.5		31.8		53.7		61.8
Total other operating costs and expenses	$	468.5	$	486.4	$	951.6	$	992.7

(13) Income Taxes

We evaluate and update our estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. For interim tax reporting, we estimate an annual effective tax rate ~~which~~that is applied to year-to-date ordinary income or loss. The tax ~~effect~~effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

Our interim estimate of our annual effective tax rate and our interim tax provision are subject to volatility due to factors such as jurisdictions in which our deferred taxes and/or tax attributes are subject to a full valuation allowance, relative changes in unrecognized tax benefits and changes in tax laws. Based upon the mix and timing of our actual annual earnings or loss compared to annual projections, as well as changes in the factors noted above, our effective tax rate may vary quarterly and may make quarterly comparisons not meaningful.

Income tax expense was ~~approximately $17~~$31 million and ~~$23~~$40 million during the three months ended ~~March 31, 2018~~June 30, 2023 and ~~2017,~~2022, respectively, and $44 million and $63 million during the six months ended June 30, 2023 and 2022, respectively. This represents an effective income tax rate of ~~(44.8)~~(61.4)% and~~68.5%~~ 8.5% for the three months ended ~~March 31, 2018~~June 30, 2023 and ~~2017, respectively,~~2022, respectively. For the six months ended June 30, 2022, this represents an effective income tax rate of 17.6%, including items treated discretely. The effective income tax rate for the six months ended June 30, 2023 was not meaningful due to a net loss before income taxes that was near breakeven.

For the three and six months ended ~~March 31, 2018,~~June 30, 2023, the income tax expense attributable to our ~~loss~~earnings (loss) before income taxes differs from the ~~amount~~amounts computed using the statutory tax rate, primarily due to the detrimental effects of ~~international rate differences,~~net increases in ~~the~~ valuation ~~allowance, and~~allowances, negative effects of permanent tax differences, such as non-deductible ~~expenses.~~expenses and inclusion of withholding taxes on cross-border payments. These negative impacts to our effective tax rate were partially offset by the beneficial effects of international rate differences and permanent tax differences, such as non-taxable ~~income and price level restatements.~~income. For the three months ended ~~March 31, 2017,~~June 30, 2023, income tax expense reflects net increases in uncertain tax positions, while for the six months ended June 30, 2023, income tax expense reflects net releases in uncertain tax positions.

For the three and six months ended June 30, 2022, the income tax expense attributable to our ~~earnings~~loss before income taxes differs from the ~~amount~~amounts computed using the statutory tax rate, primarily due to the detrimental effects of ~~international rate~~non-deductible goodwill impairment, negative effects of permanent tax differences, such as non-deductible expenses and ~~changes in valuation allowances,~~inclusion of withholding taxes on cross-border payments. These negative impacts to our effective tax rate were partially offset by the beneficial effects of ~~enacted~~international rate differences, permanent tax ~~law~~differences, such as non-taxable income, and ~~rate changes.~~net decreases in valuation allowances.


~~(10)~~	~~Equity~~

In December 2017, in connection with challenging circumstances that Liberty Puerto Rico experienced as a result of the damage caused by hurricanes during September 2017, in particular Hurricane Maria, the LPR Credit Agreements were amended to provide for, among other things, an equity commitment of up to $60 million (the ~~LCPR Equity Commitment~~) from Liberty Puerto Rico’s shareholders through December 31, 2018 to fund potential liquidity shortfalls. Based on our 60% ownership in Liberty Puerto Rico, we are obligated for up to $36 million of the LCPR Equity Commitment. During the first quarter of 2018, a $25 million capital contribution was provided to Liberty Puerto Rico consisting of $15 million from us~~and $10 million from investment funds affiliated with Searchlight Capital Partners, L.P. (Searchlight~~). The capital contribution from Searchlight is included in our condensed consolidated statement of equity as an increase to noncontrolling interests. Subsequent to March 31, 2018, an additional $20 million was contributed to Liberty Puerto Rico, consisting of $12 million from us and $8 million from Searchlight. Accordingly, Liberty Puerto Rico has up to an additional $15 million available under the LCPR Equity Commitment, of which we are obligated for up to $9 million.

During the first quarter of 2018, we increased our ownership in C&W Jamaica from 82.0% to 91.7% by acquiring 1,629,734,373 of the issued and outstanding ordinary stock units of C&W Jamaica that we did not already own (the ~~C&W Jamaica NCI Acquisition) for JMD $1.45 per share or JMD $2,363 million ($19 million) of paid consideration. In connection with the C&W Jamaica NCI Acquisition, we incurred approximately $1 million in transaction fees.~~

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)


~~(11)~~	~~Related-party Transactions~~

Prior to the consummation of the Split-Off, certain Liberty Global subsidiaries charged fees and allocated costs and expenses to our company, as further described below. Upon completion of the Split-Off, certain fees and allocated costs and expenses have been replaced by fees pursuant to the Split-Off Agreements, as further described below.

~~The following table provides details of our significant related-party balances:~~

March 31, 2018 December 31, 2017
in millions
Assets:
Current assets – related-party receivables (a) $ 3.8
$ 4.2
Income tax receivable (b) 3.8
—
Total assets $ 7.6
$ 4.2

Liabilities – accounts payable and other accrued and current liabilities (c) $ 5.3
$ 1.4


~~(a)~~	~~Represents non-interest bearing receivables due from certain Liberty Global subsidiaries.~~


~~(b)~~	This amount represents the benefit of related-party tax allocations, which arise from the estimated utilization of certain net operating losses of Liberty Latin America that are included in Liberty Global’s U.S. consolidated income tax filing for the period preceding the Split-Off.


~~(c)~~	~~Represents non-interest bearing payables to certain Liberty Global subsidiaries.~~

~~Split-Off Agreements~~(14) Earnings or Loss Per Share

~~In connection with the Split-Off, Liberty Latin America, Liberty Global and/or certain of their respective subsidiaries entered into the Split-Off Agreements.~~ ~~For the three months ended March 31, 2018, we incurred $2 million of charges associated with these agreements.The following summarizes the material agreements:~~


•	~~a reorganization agreement, (the~~ ~~Reorganization Agreement~~), which provides for, among other things, the principal corporate transactions (including the internal restructuring) required to effect the Split-Off, certain conditions to the Split-Off and provisions governing the relationship between Liberty Global and Liberty Latin America with respect to and resulting from the Split-Off;

•

~~a services agreement (the~~ ~~Services Agreement~~), pursuant to which, for up to two years following the Split-Off with the option to renew for a one-year period, Liberty Global will provide Liberty Latin America with specified services, including access to Liberty Global’s procurement team and tools to leverage scale and take advantage of joint purchasing opportunities, certain management services, other services to support Liberty Latin America’s legal, tax, accounting and finance departments, and certain technical and information technology services (including software development services associated with the Horizon platform, management information systems, computer, data storage, and network and telecommunications services);


•	~~a sublease agreement (the~~ ~~Sublease Agreement), pursuant to which Liberty Latin America will sublease office space from Liberty Global in Denver, Colorado until May 31, 2031, subject to customary termination and notice provisions;~~


•	~~a facilities sharing agreement (the~~ ~~Facilities Sharing Agreement), pursuant to which, for as long as the Sublease Agreement remains in effect, Liberty Latin America will pay a fee for the usage of certain facilities at the office space in Denver, Colorado; and~~


•	~~a tax sharing agreement (the~~ ~~Tax Sharing Agreement), which governs the parties’ respective rights, responsibilities and obligations with respect to taxes and tax benefits, the filing of tax returns, the control of audits and other tax matters.~~

~~Liberty Latin America Ltd.~~

~~Notes to Condensed Consolidated Financial Statements – (Continued)~~

~~March 31, 2018~~

~~(unaudited)~~

~~Related-Party Charges Prior to the Split-Off~~

~~Our related-party transactions prior to the Split-Off for the three months ended March 31, 2017 are as follows (in millions):~~

Revenue $ 4.0
Allocated share-based compensation expense (3.3 )
Charges from Liberty Global (3.0 )
Included in operating income (2.3 )
Interest income 1.5
Allocated tax expense (1.8 )
Included in net loss $ (2.6 )

~~Revenue.~~ Amount primarily represents revenue from the Carve-out Entities for (i) management services C&W provided to the Carve-out Entities to operate and manage their business under a management services agreement and (ii) products and services that C&W provided to the Carve-out Entities in the normal course of business. The services that we provided to the Carve-out Entities were provided at the direction of, and subject to the ultimate control and oversight of, the Carve-out Entities. As discussed in note 4, C&W acquired the Carve-out Entities on April 1, 2017.

~~Allocated share-based compensation expense. Amount represents share-based compensation that Liberty Global allocated to us with respect to share-based incentive awards held by our employees.~~

~~Charges from Liberty Global.~~ Following the LiLAC Transaction, Liberty Global began to allocate a portion of the costs of their corporate functions, excluding share-based compensation expense, to us based primarily on the estimated percentage of time spent by corporate personnel providing services to us. Effective January 1, 2017, the annual allocation was $12 million. The allocated costs, which were cash settled, are included in SG&A expenses in our condensed consolidated statement of operations. Although we believe the allocated costs are reasonable, no assurance can be given that such costs are reflective of the costs we would have incurred as a standalone company. Upon consummation of the Split-Off, Liberty Global no longer allocates costs to us and instead we prospectively incur certain charges under certain of the Split-Off Agreements described above.

~~Interest income.~~ Amount includes interest income on C&W’s related-party loans receivable from New Cayman, which bore interest at 8.0% per annum. On April 1, 2017, subsidiaries of C&W acquired the Carve-out Entities, at which time these loans receivable were settled in exchange for the equity of the Carve-out Entities. Related-party interest income is included in other income, net, in our condensed consolidated statement of operations. For additional information regarding the Carve-out Entities, see note 4.

~~Tax allocations.~~ ~~Amount represents related-party income tax allocations recognized prior to the Split-Off. See abovefor additional information regarding the Tax Sharing Agreement with Liberty Global that became effective upon the consummation of the Split-Off.~~

~~Liberty Latin America Ltd.~~

~~Notes to Condensed Consolidated Financial Statements – (Continued)~~

~~March 31, 2018~~

~~(unaudited)~~


~~(12)~~	~~Restructuring Liabilities~~

~~A summary of changes in our restructuring liabilities during the three months ended March 31, 2018 is set forth in the table below:~~

Employee severance and termination Contract termination and other Total
in millions

Restructuring liability as of January 1, 2018 $ 6.2
$ 25.4
$ 31.6
Restructuring charges 24.1
1.6
25.7
Cash paid (5.5 ) (1.3 ) (6.8 )
Foreign currency translation adjustments —
0.4
0.4
Restructuring liability as of March 31, 2018 $ 24.8
$ 26.1
$ 50.9

Current portion $ 24.3
$ 12.4
$ 36.7
Noncurrent portion 0.5
13.7
14.2
Total $ 24.8
$ 26.1
$ 50.9

~~Our restructuring charges during the three months ended March 31, 2018 primarily relate to employee severance and termination costs associated with reorganization programs at C&W.~~

~~(13)~~ ~~Share-based Compensation~~

~~The following table summarizes our share-based compensation expense:~~

Three months ended March 31,
2018 2017
in millions
Included in:
Other operating expense $ 0.1
$ 0.5
SG&A expense 6.4
5.1
Total $ 6.5
$ 5.6

~~Share-based Incentive Awards~~

~~The following tables summarize the share-based incentive awards related to Liberty Latin America shares as of March 31, 2018:~~

Number of
shares Weighted average base price Weighted average remaining contractual term
Share-based incentive award type in years
Stock appreciation rights (SARs):

Class A common shares:
Outstanding 1,274,964
$ 26.50
5.7
Exercisable 336,956
$ 30.95
4.5
Class C common shares:
Outstanding 2,603,506
$ 26.84
5.6
Exercisable 737,051
$ 31.17
4.3

~~Liberty Latin America Ltd.~~

~~Notes to Condensed Consolidated Financial Statements – (Continued)~~

~~March 31, 2018~~

~~(unaudited)~~

Number of
shares Weighted average remaining contractual term
Share-based incentive award type in years
Restricted stock units (RSUs) outstanding:

Class A common shares 139,657
2.4
Class C common shares 288,522
2.3
Performance-based restricted stock units (PSUs) outstanding :

Class A common shares 173,849
1.5
Class C common shares 340,291
1.5

During the three months ended March 31, 2018, we granted SARs with respect to 594,267 Class A common shares and 1,188,533 Class C common shares, which have base prices of $21.58 and $21.39, respectively.


~~(14~~)	~~Earnings (Loss) per Share~~

Basic ~~earnings (loss) per share (~~EPS) is computed by dividing net earnings ~~(loss)~~or loss attributable to Liberty Latin America shareholders by the weighted average number of Liberty Latin America ~~Shares or LiLAC~~ Shares outstanding during the periods presented, as further described below. Diluted EPS presents the dilutive effect, if any, on a per share basis of ~~potential shares (e.g., SARs and RSUs)~~dilutive securities as if they had been exercised, vested or ~~vested~~converted at the beginning of the periods presented.

The details of our weighted average shares outstanding are set forth below:

Three months ended March 31,
2018 (a) 2017 (b)

Weighted average shares outstanding - basic and dilutive 171,231,111
172,743,854


	Three months ended June 30,		Six months ended June 30,
	2023	2022	2023	2022
	in millions
Weighted average shares outstanding:
Basic	212.3	224.9	214.0	226.6
Diluted	227.3	224.9	214.0	226.6

The details of the calculations of our basic and diluted EPS for the three months ended June 30, 2023 is set forth below (in millions):


~~(a)~~			~~Represents the weighted average number~~Three months ended June 30, 2023

Numerator:
Net earnings attributable to holders of Liberty Latin America ~~shares outstanding during the period, as this period occurred after the Split-Off.~~Shares (basic EPS computation)

$	38.2
~~(b)~~Add back: interest expense, amortization of deferred financing costs and discounts, and net loss on debt extinguishment associated with Convertible Notes (if-converted method)		~~Represents the weighted~~1.3
Net earnings attributable to holders of Liberty Latin America Shares (diluted EPS computation)		$	39.5
Denominator:
Weighted average ~~number of LiLAC Shares, as defined in note 1, outstanding during the period, as this period occurred prior~~shares (basic EPS computation)		212.3
Incremental shares attributable to the ~~Split-Off. Amount was used for both basic~~release of RSUs upon vesting and ~~dilutive~~the ESPP (treasury stock method)		0.3
Number of shares issuable under our Convertible Notes (if-converted method) (a)		14.7
Weighted average shares (diluted EPS ~~as no Company equity awards were outstanding prior to the Split-Off.~~computation) (b)		227.3

(a)With regards to the aggregate number of shares potentially issuable under our Convertible Notes, the Capped Calls provide an economic hedge to reduce or offset potential dilution to our Class C common shares upon any conversion of the Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of such converted notes, as the case may be, with such reduction and/or offset subject to a cap.

(b)We ~~reported a loss attributable to Liberty Latin America shareholders during the three months ended March 31, 2018 . Therefore, the potentially dilutive effect at March 31, 2018 of~~have excluded the following items ~~was not included in the~~from our computation of diluted loss per share because their inclusion would have been anti-dilutive to the computation or, in the case of certain PSUs and PSARs, because such awards had not yet met the applicable performance criteria: (i) the aggregate number of shares issuable pursuant to outstanding options, SARs and RSUs of approximately 10.5 million and (ii) the aggregate number of shares issuable pursuant to outstanding PSUs of approximately 1.2 million.criteria (in millions):




Aggregate number of shares issuable pursuant to:
Outstanding options, SARs and RSUs			36.0
Outstanding PSUs and PSARs			8.8
LTVP			2.8

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)


~~(15)~~	~~Commitments and Contingencies~~

~~Commitments~~

~~In the normal course of business, we have entered into agreements that commit our company~~We reported net losses attributable to make cash payments in future periods with respect to programming contracts, network and connectivity commitments, purchases of customer premises and other equipment and services, non-cancellable operating leases and other items. The following table sets forth the U.S. dollar equivalents of such commitments as of March 31, 2018:

Payments due during:
Remainder of 2018
2019 2020 2021 2022 2023 Thereafter Total
in millions

Programming commitments $ 120.3
$ 58.3
$ 24.4
$ 18.0
$ 2.2
$ 1.5
$ 0.7
$ 225.4
Network and connectivity commitments 82.2
74.2
25.9
18.5
14.6
13.9
24.3
253.6
Purchase commitments 110.7
27.6
9.6
1.1
1.1
0.6
—
150.7
Operating leases (a) 22.5
20.6
16.9
13.4
11.4
9.1
17.3
111.2
Other commitments (a) 8.9
2.8
1.6
1.4
1.3
1.3
10.0
27.3
Total (b) $ 344.6
$ 183.5
$ 78.4
$ 52.4
$ 30.6
$ 26.4
$ 52.3
$ 768.2


~~(a)~~	~~Amounts include commitments under the Sublease Agreement and the Facilities Sharing Agreement as further described in note 11.~~


~~(b)~~	~~The commitments included in this table do not reflect any liabilities that are included in our March 31, 2018 condensed consolidated balance sheet.~~

Programming commitments consist of obligations associated with certain programming, studio output and sports rights contracts that are enforceable and legally binding on us as we have agreed to pay minimum fees without regard to (i) the actual number of subscribers to the programming services, (ii) whether we terminate service to a portion of our subscribers or dispose of a portion of our distribution systems or (iii) whether we discontinue our premium sports services. In addition, programming commitments do not include increases in future periods associated with contractual inflation or other price adjustments that are not fixed. Accordingly, the amounts reflected in the above table with respect to these contracts are significantly less than the amounts we expect to pay in these periods under these contracts. Historically, payments to programming vendors have represented a significant portion of our operating costs, and we expect that this will continue to be the case in future periods. In this regard, our total programming and copyright costs aggregated $96 million and $102 million during the three months ended March 31, 2018, and 2017, respectively.

Network and connectivity commitments relate largely to (i) VTR’s domestic network service agreements with certain other telecommunications companies and (ii) VTR’s mobile virtual network operator (~~MVNO~~) agreement. The amounts reflected in the above table with respect to certain of our MVNO commitments represent fixed minimum amounts payable under these agreements and, therefore, may be significantly less than the actual amounts VTR ultimately pays in these periods.

Purchase commitments include unconditional and legally-binding obligations related to (i) the purchase of customer premises and other equipment and (ii) certain service-related commitments, including call center, information technology and maintenance services.

In addition to the commitments set forth in the table above, we have commitments under (i) derivative instruments and (ii) defined benefit plans and similar agreements, pursuant to which we expect to make payments in future periods. For information regarding our derivative instruments, including the net cash paid or received in connection with these instruments during the three months ended March 31, 2018, and 2017, see note 5.

Liberty Latin America ~~Ltd.~~shareholders during the six months ended June 30, 2023 and the three and six months ended June 30, 2022. As a result, the potentially dilutive effect at June 30, 2023 and 2022 of the following items was not included in the computation of diluted loss per share for such periods because their inclusion would have been anti-dilutive to the computation or, in the case of certain PSUs and PSARs, because such awards had not yet met the applicable performance criteria (in millions):

~~Notes to Condensed Consolidated Financial Statements – (Continued)~~

~~March 31, 2018~~

~~(unaudited)~~


	June 30,
	2023	2022
Aggregate number of shares issuable pursuant to:
Outstanding options, SARs and RSUs	39.4	36.1
Outstanding PSUs and PSARs	8.8	9.5
LTVP	2.8	—
ESPP	0.2	—
Aggregate number of shares potentially issuable under our Convertible Notes (if-converted method)	14.7	19.5

(15) Equity

Share Repurchase Program

On May 8, 2023, our Directors approved an additional $200 million for the repurchase of our Class A common shares and/or Class C common shares under the Share Repurchase Program through December 2025 through open market purchases at prevailing market prices, in privately negotiated transactions, in block trades, derivative transactions and/or through other legally permissible means.

During the six months ended June 30, 2023, we repurchased1.9 millionand 8.1 million Class A and Class C common shares, respectively. During the six months ended June 30, 2022, we repurchased 2.4 million and 9.8 million Class A and Class C common shares, respectively. At June 30, 2023, the remaining amount authorized for share repurchases under the Share Repurchase Program was $175 million.

Pension Buy-in

In May 2023, the CWSF completed an additional buy-in bulk annuity, resulting in 100% of the plan’s liabilities being covered by insurance annuity policies. The buy-in resulted in the remeasurement of $75 million from net pension assets to accumulated other comprehensive income during the second quarter of 2023, which represents the loss associated with the difference between the projected benefit obligations and the cost of the bulk annuity policy.

(16) Commitments and Contingencies

Guarantees and Other Credit Enhancements

In the ordinary course of business, we may provide (i) indemnifications to our lenders, our vendors and certain other parties and (ii) performance and/or financial guarantees to local municipalities, our customers and vendors. Historically, these arrangements have not resulted in our company making any material payments and we do not believe that they will result in material payments in the future. In addition, C&W has provided indemnifications of (i) up to $300 million with respect to any potential tax-related claims related to the disposal in April 2013 of C&W’s interests in certain businesses and (ii) an unlimited amount of qualifying claims associated with the disposal of another business in May 2014. The first indemnification expires in April 2020 and the second expires in May 2020. We do not expect that either of these arrangements will require us to make material payments to the indemnified parties.

Regulatory Issues

~~Legal and Regulatory Proceedings and Other Contingencies~~

~~Regulatory Issues.~~ Video distribution, broadband internet, fixed-line telephony and mobile are regulated in each of the countries in which we operate. The scope of regulation varies from country to country. Adverse regulatory developments could subject our businesses to a number of risks. Regulation, including conditions imposed on us by competition or other authorities as a requirement to close acquisitions or dispositions, could limit growth, revenue and the number and types of services offered and could lead to increased operating costs and property and equipment additions. In addition, regulation may restrict our operations and subject them to further competitive pressure, including pricing restrictions, interconnect and other access obligations, and restrictions or controls on content, including content provided by third parties. Failure to comply with current or future regulation could expose our businesses to various penalties.

~~In addition to the foregoing items, we~~We have contingent liabilities related to matters arising in the ordinary course of business, including (i) legal proceedings, (ii) issues involving wage, property, withholding and other tax issues and (iii) disputes over interconnection, programming and copyright fees. While we generally expect that the amounts required to satisfy these contingencies will not materially differ from any estimated amounts we have accrued, no assurance can be given that the resolution of one or more of these contingencies will not result in a material impact on our results of operations, cash flows or financial position in any given period. Due, in general, to the complexity of the issues involved and, in certain cases, the lack of a clear basis for predicting

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

June 30, 2023

(unaudited)

outcomes, we cannot provide a meaningful range of potential losses or cash outflows that might result from any unfavorable outcomes.


~~(16)~~	~~Segment Reporting~~

(17) Segment Reporting

Our reportable segments derive their revenue primarily from residential and B2B services, including video, broadband internet, fixed-line telephony and mobile services. Our corporate category includes our corporate operations, which derive revenue from mobile handset insurance services. We generally identify our reportable segments as those operating segments that represent 10% or more of our revenue, Adjusted OIBDA ~~(as defined below)~~ or total assets.

As of June 30, 2023, unless otherwise specified below, our reportable segments are as follows:

•C&W Caribbean;

•C&W Panama;

•Liberty Networks;

•Liberty Puerto Rico;

•Liberty Costa Rica; and

•VTR (through September 30, 2022).

Performance Measures of our Reportable Segments

We evaluate performance and make decisions about allocating resources to our reportable segments based on financial measures, such as revenue and Adjusted OIBDA. In addition, we review non-financial measures, such as subscriber ~~growth,~~growth. We account for intersegment sales as ~~appropriate.~~if they were to third parties, or at current market prices.

Adjusted OIBDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance. Adjusted OIBDA is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of ~~annual and other~~ incentive compensation plans. ~~As we use the term, “Adjusted OIBDA~~” is defined as operating income before depreciation and amortization, share-based compensation, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Other operating items include (i) gains and losses on the disposition of long-lived assets, (ii) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (iii) other acquisition-related items, such as gains and losses on the settlement of contingent consideration. Our internal decision makers believe Adjusted OIBDA is a meaningful measure because it represents a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (i) readily view operating trends, (ii) perform analytical comparisons and benchmarking between segments and (iii) identify strategies to improve operating performance in the different countries in which we operate. ~~As further described in note 2, effective January 1, 2018, we adopted ASU 2017-07, which resulted in the reclassification~~A reconciliation of certain pension-related credits from SG&A to non-operating income (expense) in our condensed consolidated statements of operations. As a result of the adoption, we have presented $3 million of pension-related credits in other income, net in our condensed consolidated statement of operations during each of the three months ended March 31, 2018 and 2017. Effective December 31, 2017, we include certain charges previously allocated to us by Liberty Global in the calculation of Adjusted OIBDA. These charges represent fees for certain services provided to us and totaled $3 million for the three months ended March 31, 2017. We believe changing the definition oftotal Adjusted OIBDA to ~~include these charges~~operating income or loss and to earnings or loss before income taxes is ~~meaningful~~presented below.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

given they represent operating costs we will continue to incur subsequent to the Split-Off as a standalone public company. This change has been given effect for all periods presented. A reconciliation of total Adjusted OIBDA to our earnings (loss) before income taxes is presented below.

~~As of March 31, 2018, our reportable segments are as follows:~~

•~~C&W~~

•~~VTR~~

•~~Liberty Puerto Rico~~

Our reportable segments derive their revenue primarily from residential and B2B services, including video, broadband internet and fixed-line telephony services and, with the exception of Liberty Puerto Rico, mobile services. We provide residential and B2B services in (i) 18 countries, primarily in Latin America and the Caribbean, through C&W, (ii) Chile through VTR and (iii) Puerto Rico through Liberty Puerto Rico. C&W also provides (i) B2B communication services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its sub-sea and terrestrial fiber optic cable networks that connect over 40 markets in that region.

~~Performance Measures of our Reportable Segments~~

The amounts presented below represent 100% of the revenue and Adjusted OIBDA of each of our reportable ~~segment’s revenue~~segments and ~~Adjusted OIBDA.~~our corporate operations. As we have the ability to control ~~Liberty Puerto Rico and~~ certain subsidiaries ~~of C&W~~ that are not wholly-owned, we include 100% of the revenue and expenses of these entities in our condensed consolidated statements of operations despite the fact that third parties own significant interests in these entities. The noncontrolling owners’ interests in the operating results of (i) certain subsidiaries of (a) C&W and (b) Liberty Puerto Rico, and ~~certain subsidiaries of C&W~~(ii) Liberty Costa Rica are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations. Subsequent to the formation of the Chile JV during October 2022, VTR is no longer consolidated.


	Revenue
	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

C&W Caribbean	$	356.3	$	355.6	$	710.1	$	710.4
C&W Panama	180.8		141.6		346.1		268.8
Liberty Networks	118.6		116.4		227.3		224.0
Liberty Puerto Rico	352.0		362.8		717.8		729.5
Liberty Costa Rica	135.2		108.0		264.4		215.4
VTR	—		150.0		—		320.8
Corporate	5.6		5.5		12.0		11.1
Intersegment eliminations	(25.8)		(23.7)		(51.2)		(47.6)
Total	$	1,122.7	$	1,216.2	$	2,226.5	$	2,432.4


	Adjusted OIBDA
	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

C&W Caribbean	$	146.3	$	134.5	$	286.5	$	264.4
C&W Panama	59.0		44.4		102.5		84.9
Liberty Networks	72.2		75.1		135.8		137.7
Liberty Puerto Rico	141.3		146.1		275.7		286.7
Liberty Costa Rica	50.1		35.6		95.3		65.8
VTR	—		37.9		—		84.4
Corporate	(23.6)		(12.8)		(44.0)		(26.6)

Total	$	445.3	$	460.8	$	851.8	$	897.3

Revenue Adjusted OIBDA
Three months ended March 31, Three months ended March 31,
2018 2017 2018 2017
in millions

C&W $ 585.5
$ 575.6
$ 229.1
$ 209.9
VTR 263.8
229.3
105.0
91.6
Liberty Puerto Rico 61.8
106.7
18.0
51.3
Corporate —
—
(11.3 ) (5.1 )
Intersegment eliminations (1.2 ) (0.7 ) —
—
Total $ 909.9
$ 910.9
$ 340.8
$ 347.7

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

The following table provides a reconciliation of total Adjusted OIBDA to operating income (loss) and to earnings (loss) before income taxes:

Three months ended March 31,
2018 2017
in millions

Total Adjusted OIBDA $ 340.8
$ 347.7
Share-based compensation (6.5 ) (5.6 )
Depreciation and amortization (202.3 ) (193.9 )
Impairment, restructuring and other operating items, net (33.7 ) (13.4 )
Operating income 98.3
134.8
Interest expense (102.5 ) (94.3 )
Realized and unrealized losses on derivative instruments, net (41.5 ) (27.3 )
Foreign currency transaction gains, net 15.9
14.5
Loss on debt modification and extinguishment (13.0 ) —
Other income, net 5.3
6.0
Earnings (loss) before income taxes $ (37.5 ) $ 33.7


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Total Adjusted OIBDA	$	445.3	$	460.8	$	851.8	$	897.3
Share-based compensation expense	(24.5)		(31.8)		(53.7)		(61.8)
Depreciation and amortization	(240.5)		(213.3)		(475.1)		(427.4)
Impairment, restructuring and other operating items, net	(40.8)		(568.6)		(70.5)		(576.4)
Operating income (loss)	139.5		(352.9)		252.5		(168.3)
Interest expense	(149.1)		(136.9)		(295.7)		(266.6)
Realized and unrealized gains on derivative instruments, net	64.4		283.3		5.3		249.6
Foreign currency transaction gains (losses), net	(6.7)		(262.0)		42.5		(165.4)
Gains (losses) on debt extinguishments, net	0.4		—		(4.2)		—
Other income (expense), net	1.3		(0.4)		(0.4)		(5.2)
Earnings (loss) before income taxes	$	49.8	$	(468.9)	$	—	$	(355.9)

Property and Equipment Additions of our Reportable Segments

The property and equipment additions of our reportable segments and corporate operations (including capital additions financed under vendor financing or ~~capital~~finance lease arrangements) are presented below and reconciled to the capital ~~expenditure~~expenditures, net, amounts included in our condensed consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing, see note 7.


	Six months ended June 30,
	2023		2022
	in millions

C&W Caribbean	$	118.2	$	92.9
C&W Panama	45.5		41.4
Liberty Networks	23.9		20.3
Liberty Puerto Rico	101.7		91.0
Liberty Costa Rica	30.3		25.2
VTR	—		79.7
Corporate	17.5		16.6
Total property and equipment additions	337.1		367.1
Assets acquired under capital-related vendor financing arrangements	(71.9)		(67.5)

Changes in current liabilities related to capital expenditures and other	7.9		19.5
Total capital expenditures, net	$	273.1	$	319.1

Three months ended March 31,
2018 2017
in millions

C&W $ 67.2
$ 60.5
VTR 57.0
55.4
Liberty Puerto Rico 69.8
23.3
Total property and equipment additions 194.0
139.2
Assets acquired under capital-related vendor financing arrangements (20.7 ) (14.1 )
Assets acquired under capital leases (0.6 ) (0.9 )
Changes in current liabilities related to capital expenditures 15.5
0.2
Total capital expenditures $ 188.2
$ 124.4

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)

Revenue by Major Category

Our revenue by major category for our reportable segments is set forth in the tables ~~below. As further described in note 2, we adopted ASU 2014-09 effective January 1, 2018 using~~below and includes the ~~cumulative effect transition method.~~ following categories:

•residential fixed subscription and residential mobile services revenue, which includes amounts received from subscribers for ongoing fixed and airtime services, respectively;

•residential fixed non-subscription revenue, which primarily includes interconnect and advertising revenue; and

•B2B revenue, which comprises (i) enterprise revenue that primarily includes broadband internet, video, fixed-line telephony, mobile and managed services (including equipment installation contracts) offered to small (including small or home office), medium and large enterprises and other telecommunication operators; and (ii) wholesale revenue, which includes long-term capacity contracts with customers where the customer either pays a fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time.


	Three months ended June 30, 2023
	C&W Caribbean		C&W Panama		Liberty Networks		Liberty Puerto Rico		Liberty Costa Rica		Corporate		Intersegment Eliminations		Total
	in millions
Residential revenue:
Residential fixed revenue:



Subscription revenue	$	121.4	$	28.7	$	—	$	121.1	$	39.4	$	—	$	—	$	310.6
Non-subscription revenue	7.7		1.4		—		6.0		2.6		—		—		17.7
Total residential fixed revenue	129.1		30.1		—		127.1		42.0		—		—		328.3
Residential mobile revenue:
Service revenue	81.3		65.8		—		102.8		60.3		—		—		310.2
Interconnect, inbound roaming, equipment sales and other (a)	18.6		13.6		—		54.9		19.1		5.6		—		111.8
Total residential mobile revenue	99.9		79.4		—		157.7		79.4		5.6		—		422.0
Total residential revenue	229.0		109.5		—		284.8		121.4		5.6		—		750.3



B2B revenue (b)	127.3		71.3		118.6		56.2		13.8		—		(25.8)		361.4
Other revenue	—		—		—		11.0		—		—		—		11.0
Total	$	356.3	$	180.8	$	118.6	$	352.0	$	135.2	$	5.6	$	(25.8)	$	1,122.7

(a)The ~~comparative information has not been restated~~total amount includes $55 million of revenue from sales of mobile handsets and ~~continues~~other devices.

(b)The total amount includes$9 millionof revenue from sales of mobile handsets and other devices to ~~be reported under the accounting standards in effect for those periods. The adoption of ASU 2014-09 did not have a material impact on our revenue by category.~~B2B mobile customers.

Three months ended March 31, 2018
C&W VTR Liberty Puerto Rico Intersegment Eliminations Total
in millions
Residential revenue:
Residential fixed revenue:
Subscription revenue (a):
Video $ 42.7
$ 99.7
$ 23.3
$ —
$ 165.7
Broadband internet 53.7
96.6
25.3
—
175.6
Fixed-line telephony 26.9
34.6
3.5
—
65.0
Total subscription revenue 123.3
230.9
52.1
—
406.3
Non-subscription revenue (b) 21.5
7.5
1.7
—
30.7
Total residential fixed revenue 144.8
238.4
53.8
—
437.0
Residential mobile revenue:
Subscription revenue (a) 155.1
16.3
—
—
171.4
Non-subscription revenue (c) 22.1
3.2
—
—
25.3
Total residential mobile revenue 177.2
19.5
—
—
196.7
Total residential revenue 322.0
257.9
53.8
—
633.7
B2B revenue:
Subscription revenue —
5.6
4.3
—
9.9
Non-subscription revenue (d) 203.9
0.3
3.0
(1.2 ) 206.0
Sub-sea network revenue (e) 59.6
—
—
—
59.6
Total B2B revenue 263.5
5.9
7.3
(1.2 ) 275.5
Other revenue —
—
0.7
—
0.7
Total $ 585.5
$ 263.8
$ 61.8
$ (1.2 ) $ 909.9


~~(a)~~	~~Residential fixed and mobile subscription revenue includes amounts received from subscribers for ongoing services.~~


~~(b)~~	~~Residential fixed non-subscription revenue includes, among other items, interconnect and advertising revenue.~~


~~(c)~~	~~Residential mobile non-subscription revenue includes, among other items, interconnect revenue and revenue from sales of mobile handsets and other devices.~~


~~(d)~~	B2B non-subscription revenue primarily includes business broadband internet, video, fixed-line telephony, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other telecommunication operators.


~~(e)~~	B2B sub-sea network revenue includes long-term capacity contracts with customers where the customer either pays a fixed fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)


	Three months ended June 30, 2022
	C&W Caribbean		C&W Panama		Liberty Networks		Liberty Puerto Rico		Liberty Costa Rica		VTR		Corporate		Intersegment Eliminations		Total
	in millions
Residential revenue:
Residential fixed revenue:



Subscription revenue	$	119.6	$	24.1	$	—	$	115.5	$	33.4	$	130.0	$	—	$	—	$	422.6
Non-subscription revenue	8.5		1.8		—		5.6		0.8		3.4		—		—		20.1
Total residential fixed revenue	128.1		25.9		—		121.1		34.2		133.4		—		—		442.7
Residential mobile revenue:
Service revenue	77.6		43.9		—		114.3		48.6		8.7		—		—		293.1
Interconnect, inbound roaming, equipment sales and other (a)	16.3		11.1		—		59.9		15.6		1.0		5.5		—		109.4
Total residential mobile revenue	93.9		55.0		—		174.2		64.2		9.7		5.5		—		402.5
Total residential revenue	222.0		80.9		—		295.3		98.4		143.1		5.5		—		845.2



B2B revenue (b)	133.6		60.7		116.4		57.3		9.6		6.9		—		(23.7)		360.8
Other revenue	—		—		—		10.2		—		—		—		—		10.2
Total	$	355.6	$	141.6	$	116.4	$	362.8	$	108.0	$	150.0	$	5.5	$	(23.7)	$	1,216.2

(a)The total amount includes $55 million of revenue from sales of mobile handsets and other devices.

(b)The total amount includes $7 million of revenue from sales of mobile handsets and other devices to B2B mobile customers.

Three months ended March 31, 2017
C&W VTR Liberty Puerto Rico Intersegment Eliminations Total
in millions
Residential revenue:
Residential fixed revenue:
Subscription revenue:
Video $ 40.5
$ 87.4
$ 42.7
$ —
$ 170.6
Broadband internet 52.8
82.3
40.4
—
175.5
Fixed-line telephony 29.3
34.3
6.4
—
70.0
Total subscription revenue 122.6
204.0
89.5
—
416.1
Non-subscription revenue 23.5
7.4
5.9
—
36.8
Total residential fixed revenue 146.1
211.4
95.4
—
452.9
Residential mobile revenue:
Subscription revenue 161.8
12.6
—
—
174.4
Non-subscription revenue 19.9
2.3
—
—
22.2
Total residential mobile revenue 181.7
14.9
—
—
196.6
Total residential revenue 327.8
226.3
95.4
—
649.5
B2B revenue:
Subscription revenue —
2.7
6.7
—
9.4
Non-subscription revenue 201.4
0.3
3.3
(0.7 ) 204.3
Sub-sea network revenue 46.4
—
—
—
46.4
Total B2B revenue 247.8
3.0
10.0
(0.7 ) 260.1
Other revenue —
—
1.3
—
1.3
Total $ 575.6
$ 229.3
$ 106.7
$ (0.7 ) $ 910.9

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

~~March 31, 2018~~June 30, 2023

(unaudited)


	Six months ended June 30, 2023
	C&W Caribbean		C&W Panama		Liberty Networks		Liberty Puerto Rico		Liberty Costa Rica		Corporate		Intersegment Eliminations		Total
	in millions
Residential revenue:
Residential fixed revenue:



Subscription revenue	$	241.3	$	57.0	$	—	$	238.1	$	77.2	$	—	$	—	$	613.6
Non-subscription revenue	14.7		2.8		—		11.7		5.1		—		—		34.3
Total residential fixed revenue	256.0		59.8		—		249.8		82.3		—		—		647.9
Residential mobile revenue:
Service revenue	161.4		130.8		—		206.5		118.1		—		—		616.8
Interconnect, inbound roaming, equipment sales and other (a)	39.3		26.9		—		126.3		37.1		12.0		—		241.6
Total residential mobile revenue	200.7		157.7		—		332.8		155.2		12.0		—		858.4
Total residential revenue	456.7		217.5		—		582.6		237.5		12.0		—		1,506.3



B2B revenue (b)	253.4		128.6		227.3		111.9		26.9		—		(51.2)		696.9
Other revenue	—		—		—		23.3		—		—		—		23.3
Total	$	710.1	$	346.1	$	227.3	$	717.8	$	264.4	$	12.0	$	(51.2)	$	2,226.5

(a)The total amount includes $126 million of revenue from sales of mobile handsets and other devices to residential mobile customers.

(b)The total amount includes $17 million of revenue from sales of mobile handsets and other devices to B2B mobile customers.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

June 30, 2023

(unaudited)


	Six months ended June 30, 2022
	C&W Caribbean		C&W Panama		Liberty Networks		Liberty Puerto Rico		Liberty Costa Rica		VTR		Corporate		Intersegment Eliminations		Total
	in millions
Residential revenue:
Residential fixed revenue:



Subscription revenue	$	241.3	$	47.8	$	—	$	231.3	$	68.1	$	279.6	$	—	$	—	$	868.1
Non-subscription revenue	17.6		4.0		—		11.0		1.6		6.5		—		—		40.7
Total residential fixed revenue	258.9		51.8		—		242.3		69.7		286.1		—		—		908.8
Residential mobile revenue:
Service revenue	154.1		86.9		—		231.3		94.8		18.0		—		—		585.1
Interconnect, inbound roaming, equipment sales and other (a)	30.8		21.5		—		124.1		32.1		2.1		11.1		—		221.7
Total residential mobile revenue	184.9		108.4		—		355.4		126.9		20.1		11.1		—		806.8
Total residential revenue	443.8		160.2		—		597.7		196.6		306.2		11.1		—		1,715.6



B2B revenue (b)	266.6		108.6		224.0		111.3		18.8		14.6		—		(47.6)		696.3
Other revenue	—		—		—		20.5		—		—		—		—		20.5
Total	$	710.4	$	268.8	$	224.0	$	729.5	$	215.4	$	320.8	$	11.1	$	(47.6)	$	2,432.4

(a)The total amount includes$116 million of revenue from sales of mobile handsets and other devices to residential mobile customers.

(b)The total amount includes $12 million of revenue from sales of mobile handsets and other devices to B2B mobile customers.

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

June 30, 2023

(unaudited)

Revenue by Geographic ~~Segments~~Market

The revenue from third-party customers for each of our geographic ~~segments~~markets is set forth ~~below:~~in the table below.


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Puerto Rico	$	340.7	$	349.5	$	695.8	$	703.6
Panama	180.4		141.0		344.7		267.4
Costa Rica	134.8		107.9		264.0		215.1
Jamaica	99.6		105.3		198.4		210.1
Networks & LatAm (a)	97.3		97.4		184.9		185.9
The Bahamas	47.6		48.4		94.7		96.1
Trinidad and Tobago	39.3		39.6		78.0		80.2
Barbados	39.4		36.8		78.0		73.3
Curacao	34.3		32.6		68.8		65.7
Chile	—		150.0		—		320.8
Other (b)	109.3		107.7		219.2		214.2
Total	$	1,122.7	$	1,216.2	$	2,226.5	$	2,432.4

(a)Amounts represent enterprise revenue and wholesale revenue from various jurisdictions across Latin America and the Caribbean related to the sale and lease of telecommunications capacity on Liberty Networks’ subsea and terrestrial fiber optic cable networks.

(b)Amounts primarily relate to a number of countries in which we have less significant operations, all of which are located in the Caribbean, and to a lesser extent, in Latin America.

Three months ended March 31,
2018 2017
in millions
C&W (a):
Panama $ 149.2
$ 153.7
Jamaica 92.5
83.6
Networks & LatAm (b) 94.1
76.9
The Bahamas 64.1
72.0
Barbados 39.4
40.2
Trinidad and Tobago 40.7
42.8
Other (c) 105.5
106.4
Total C&W 585.5
575.6
Chile 263.8
229.3
Puerto Rico 61.8
106.7
Intersegment eliminations (1.2 ) (0.7 )
Total $ 909.9
$ 910.9


~~(a)~~	~~Except as otherwise noted, the amounts presented for each C&W jurisdiction include revenue from residential and B2B operations.~~


~~(b)~~	The amounts represent wholesale services revenue from various jurisdictions across the Caribbean and Latin America, primarily related to the sale and lease of telecom capacity on C&W’s sub-sea and terrestrial networks.


~~(c)~~	The amounts relate to a number of countries in which C&W has less significant operations, all but one of which are located in Latin America and the Caribbean. In addition, these amounts include C&W intercompany eliminations.


~~Item 2.~~	~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

See the Glossary of defined terms at the beginning of this Quarterly Report on Form 10-Q.

The following discussion and analysis, which should be read in conjunction with our 2022 Form 10-K and the condensed consolidated financial statements and ~~the discussion and analysis~~accompanying notes included in ~~our 2017~~Part I, Item 1 of this Quarterly Report on Form ~~10-K,~~10-Q, is intended to assist in providing an understanding of our financial condition, changes in financial condition and results of operations and is organized as follows:

•

•Forward-looking Statements. This section provides a description of certain factors that could cause actual results or events to differ materially from anticipated results or events.

•Overview. This section provides a general description of our business and recent events.

•Material Changes in Results of Operations. This section provides an analysis of our results of operations for the three and six months ended June 30, 2023 and 2022.

• ~~This section provides a description of certain factors that could cause actual results or events to differ materially from anticipated results or events.~~


•	~~Overview.~~ ~~This section provides a general description of our business and recent events.~~


•	~~Material Changes in Results of Operations.~~ ~~This section provides an analysis of our results of operations for the three months ended March 31, 2018 and 2017.~~


•	Material Changes in Financial Condition. This section provides an analysis of our ~~corporate and subsidiary~~ liquidity, condensed consolidated statements of cash flows and contractual commitments.

~~The capitalized terms used below have been defined in the notes to our condensed consolidated financial statements. In the following text, the terms “~~we~~,” “our,” “our company” and “~~us~~” may refer, as the context requires, to Liberty Latin America or collectively to Liberty Latin America and its subsidiaries.~~

Unless otherwise indicated, ~~convenience translations into U.S. dollars are calculated~~operational data (including subscriber statistics) is presented as of ~~March 31, 2018.~~June 30, 2023.

Forward-looking Statements

Certain statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent that statements in this Quarterly Report on Form 10-Q are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In particular, statements under Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, ~~and~~ Item 3. Quantitative and Qualitative Disclosures About Market Riskand Item 4. Controls and Procedures may contain forward-looking statements, including statements regarding: our business, ~~product,~~products, foreign currency and finance ~~strategies in 2018; the anticipated rate and cost of our recovery in certain markets from the impact of Hurricanes Maria and Irma;~~strategies; our property and equipment ~~additions in 2018;~~additions; grants or renewals of licenses; subscriber growth and retention rates; changes in competitive, regulatory and economic factors; our anticipated integration plans, synergies, opportunities and integration costs in Puerto Rico following the ~~timing~~AT&T Acquisition, in Costa Rica following the Liberty Telecomunicaciones Acquisition and ~~impacts of proposed transactions; anticipated~~in Panama following the Claro Panama Acquisition; changes in our revenue, costs, or growth rates; debt levels; our ~~liquidity;~~liquidity and our ability to access the liquidity of our subsidiaries; interest rate risks; credit risks; internal control over financial reporting and remediation of material weaknesses; foreign currency risks; ~~target leverage levels;~~compliance with debt, financial and other covenants; our future projected ~~contractual commitments~~sources and ~~cash flows;~~uses of cash; and other information and statements that are not historical fact. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. In ~~evaluating these statements, you should consider~~addition to the ~~risks and uncertainties discussed~~risk factors described in Part I, Item 1A in our ~~2017~~2022 Form 10-K, ~~as well as~~ the following ~~list of~~are some but not all of the factors that could cause actual results or events to differ materially from anticipated results or events:

•economic and business conditions and industry trends in the countries in which we operate;

•the competitive environment in the industries in the countries in which we operate, including competitor responses to our products and services;

•fluctuations in currency exchange rates, inflation rates and interest rates;

•our relationships with third-party programming providers and broadcasters, some of which are also offering content directly to consumers, and our ability to maintain access to desirable programming on acceptable economic terms;

•our relationships with suppliers and licensors and the ability to maintain equipment, software and certain services;

•instability in global financial markets, including sovereign debt issues and related fiscal reforms;

•our ability to obtain additional financing and generate sufficient cash to meet our debt obligations;

•the impact of restrictions contained in certain of our subsidiaries’ debt instruments;

•consumer disposable income and spending levels, including the availability and amount of individual consumer debt;

•changes in consumer ~~television~~ viewing preferences and ~~habits;~~habits, including on mobile devices that function on various operating systems and specifications, limited bandwidth, and different processing power and screen sizes;

•customer acceptance of our existing service offerings, including our video, broadband internet, fixed-line telephony, mobile and business service offerings, and of new technology, programming alternatives and other products and services that we may offer in the future;

•our ability to manage rapid technological changes;

•the impact of 5G and wireless technologies on broadband internet;

•our ability to maintain or increase the number of subscriptions to our video, broadband internet, fixed-line telephony and mobile service offerings and our average revenue per ~~household;~~household and mobile subscriber;

•our ability to provide satisfactory customer service, including support for new and evolving products and services;

•our ability to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers;

•the impact of our future financial performance, or market conditions generally, on the availability, terms and deployment of capital;

•changes in, or failure or inability to comply with, government regulations in the countries in which we ~~or our affiliates~~ operate and adverse outcomes from regulatory proceedings;

•government intervention that requires opening our broadband distribution networks to competitors;

•our ability to renew necessary regulatory licenses, concessions or other operating agreements and to otherwise acquire future spectrum or other licenses that we need to offer new mobile data or other technologies or services;

•our ability to obtain regulatory approval and satisfy other conditions necessary to close acquisitions and dispositions, and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions;

•our ability to successfully acquire new businesses and, if acquired, to integrate, realize anticipated efficiencies from and implement our business plan with respect to the businesses we have acquired or that we expect to ~~acquire;~~acquire, such as with respect to the AT&T Acquisition, the Liberty Telecomunicaciones Acquisition, and the Claro Panama Acquisition;

•changes in laws or treaties relating to taxation, or the interpretation thereof, in the U.S. or in other countries in which we operate and the results of any tax audits or ~~our affiliates operate;~~tax disputes;

•changes in laws and government regulations that may impact the availability and cost of capital and the derivative instruments that hedge certain of our financial risks;

•the ability of suppliers and vendors, ~~(including our~~including third-party ~~wireless network~~channel providers ~~under our MVNO arrangement)~~and broadcasters, to timely deliver quality products, equipment, software, services and access;

•the availability of attractive programming for our video services and the costs associated with such programming, including retransmission and copyright fees payable to public and private broadcasters;

•uncertainties inherent in the development and integration of new business lines and business strategies;

•our ability to adequately forecast and plan future network requirements, including the costs and benefits associated with our network extension and upgrade programs;

•the availability of capital for the acquisition and/or development of telecommunications networks and ~~services;~~services, including property and equipment additions;

certain factors outside of our control that may impact the timing and extent of the restoration of our networks and services in Puerto Rico and certain of our C&W markets following Hurricanes Irma and Maria;

•problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we ~~acquire;~~acquire, such as with respect to the AT&T Acquired Entities, the Liberty Telecomunicaciones Acquisition and the Claro Panama Acquisition;

•our ability to profit from investments in joint ventures that we do not solely control;

•the effect of any of the identified material weaknesses in our internal control over financial reporting;

•piracy, targeted vandalism against our networks, and cybersecurity threats or other security breaches, including the leakage of sensitive customer ~~data;~~data, which could harm our business or reputation;

•the outcome of any pending or threatened litigation;

•the loss of key employees and the availability of qualified personnel;

•the effect of any strikes, work stoppages or other industrial actions that could affect our operations;

•changes in the nature of key strategic relationships with partners and joint venturers;

•our equity capital structure;

•our ability to realize the full value of our intangible assets;

•changes in and compliance with applicable data privacy laws, rules, and regulations;

•our ability to recoup insurance reimbursements and settlements from third-party providers;

•our ability to comply with anti-corruption laws and regulations, such as the FCPA;

•our ability to comply with economic and trade sanctions laws, such as the U.S. Treasury Department’s OFAC;

•the impacts of climate change such as rising sea levels or increasing frequency and intensity of certain weather phenomena; and

•events that are outside of our control, such as political conditions and unrest in international markets, terrorist attacks, malicious human acts, hurricanes and other natural disasters, pandemics, including the COVID-19 pandemic, and other similar events.

The broadband distribution and mobile service industries are changing rapidly and, therefore, the forward-looking statements of expectations, plans and intent in this Quarterly Report on Form 10-Q are subject to a significant degree of risk. These forward-looking statements and the above described risks, uncertainties and other factors speak only as of the date of this Quarterly Report on Form 10-Q,, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on any forward-looking statement.

Overview

General

We are an international provider of ~~video, broadband internet, fixed-line telephony~~fixed, mobile and ~~mobile~~subsea telecommunications services. We provide,

A.residential and B2B ~~communications~~ services ~~in (i) 18~~in:

i.over 20 countries ~~primarily in~~across Latin America and the Caribbean through two of our reportable segments, C&W ~~(ii) Chile through VTR~~Caribbean and ~~(iii)~~ C&W Panama;

ii.Puerto Rico, through our reportable segment Liberty Puerto ~~Rico. C&W also provides~~Rico; and

iii.Costa Rica, through our reportable segment Liberty Costa Rica.

B.through our reportable segment Liberty Networks, (i) ~~B2B communication~~enterprise services in certain other countries in Latin America and the Caribbean and (ii) wholesale ~~communication~~ services over ~~its sub-sea~~our subsea and terrestrial fiber optic cable networks that connect ~~over~~approximately 40 markets in that region.

~~Operations~~

As described below, Hurricanes Irma and Maria caused significant damage to our operations in the Impacted Markets, as defined below, resulting in disruptions to our telecommunications services. As we are still in the process of assessing the operational impacts of the hurricanes in the Impacted Markets, we are unable to accurately estimate our homes passed and subscriber numbers as of March 31, 2018. Accordingly, the March 31, 2018 subscriber numbers for the Impacted Markets reflect subscriber amounts as of August 31, 2017 as adjusted through March 31, 2018 for (i) net voluntary disconnects and (ii) disconnects related to customers whose accounts are delinquent. The Liberty Puerto Rico homes passed reflect the August 31, 2017 levels adjusted for approximately 30,000 homes in geographic areas we may not rebuild.

At ~~March 31, 2018,~~June 30, 2023, we (i) owned and operated fixed networks that passed ~~6,457,900~~4,407,200 homes and served ~~5,231,000 revenue generating units (RGUs),~~3,874,200 RGUs, comprising ~~2,146,800~~1,770,200 broadband internet subscribers, ~~1,691,700 video subscribers and 1,392,500~~1,165,100 fixed-line telephony subscribers and 938,900 video subscribers and (ii) served ~~3,620,400~~8,011,500 mobile subscribers.

~~Hurricane Impact Update~~Transactions

Chile JV.In ~~September 2017, Hurricanes Irma and Maria impacted a number~~October 2022, we completed the formation of the Chile JV by contributing the Chile JV Entities into the Chile JV. Subsequent to the formation of the Chile JV, we began accounting for our ~~markets~~50% interest in the Caribbean, resulting in varying degrees of damage to homes, businesses and infrastructure in these markets. The most extensive damage occurred in Puerto Rico and certain markets within our C&W reportable segment (collectively, the ~~Impacted Markets). We continue to remain uncertain~~Chile JV as an equity method investment. Prior to the ~~extent and ultimate completion of our restoration and reconnection efforts in the Impacted Markets.~~

We maintain an integrated group property and business interruption insurance program covering all Impacted Markets up to a limit of $75 million per occurrence, which is generally subject to $15 million per occurrence of self-insurance. Although we are continuing to assess the alternatives under our insurance policy, we currently believe that the hurricanes will result in at least two occurrences. This policy is subject to the normal terms and conditions applicable to this type of insurance. We expect that the insurance recovery will only cover a portionformation of the ~~incurred losses of each of our impacted businesses.~~

~~During the three months ended March 31, 2018, we received~~Chile JV, VTR was a ~~net advance payment from our third-party insurance provider of $30 million associated with the initial insurance claims filed in connection with damages sustained from the hurricanes. Until~~wholly owned subsidiary. As such, ~~claims are legally settled, the advance is included in other accrued and current liabilities in~~ our condensed consolidated ~~balance sheet.~~

~~Liberty Puerto Rico~~. In Puerto Rico, the damage caused by Hurricane Maria and, to a lesser extent Hurricane Irma, was extensive and widespread. Individuals and businesses across Puerto Rico continue to deal with significant challenges caused by the severe damage to essential infrastructure, including damage to Puerto Rico’s power supply and transmission system. Similarly, Liberty Puerto Rico’s broadband communications network suffered extensive damage. Asstatements of March 31, 2018, we have been able to restore service to approximately 560,000 RGUs of our total estimated 723,100 RGUs at Liberty Puerto Rico. Additionally, we estimate that approximately $130 millionof property and equipment additions will be required to restore nearly all of Liberty Puerto Rico’s broadband communications network, of which approximately $112 million has been incurred following the hurricanes~~through March 31, 2018.~~

While the negative impacts from the hurricanes are declining as the network is restored and customers are reconnected, we expect that the adverse impacts of the hurricanes on Liberty Puerto Rico’s revenue and Adjusted OIBDA will continue through 2018~~and beyond. The severity of the hurricanes’ impact on Liberty Puerto Rico’s future revenue and Adjusted OIBDA will be influenced in part by the following uncertainties:~~

~~the length of time that it will take to restore Puerto Rico’s power and transmission system and to fully restore our network;~~

~~the number of people that will choose to leave Puerto Rico for an extended period or permanently; and~~

~~the ability of the Puerto Rico and U.S. governments to effectively oversee the recovery process in Puerto Rico.~~

~~In terms of liquidity for Liberty Puerto Rico, the cash provided by its~~ operations was a significant source of pre-hurricane liquidity. As a result of the hurricane impacts, we do not expect Liberty Puerto Rico will generate positive cash from operations, inclusive of capital expenditures, until at least the latter half of 2018. In this regard, Liberty Puerto Rico’s liquidity needs are being funded by the up to $60 million LCPR Equity Commitment from Liberty Latin America and Searchlight, $45 million of which has been provided during 2018, including $20 million subsequent to March 31, 2018, and an insurance advance of $35 million ($30 million through a third-party insurance provider and the remainder through a captive insurance subsidiary). Future liquidity sources are expected to include further insurance proceeds, the remaining portion of the LCPR Equity Commitment, as applicable, through December 31, 2018 of up to $15 million and cash ~~from operations. For additional information regarding~~flows for the ~~LCPR Equity Commitment, see~~ ~~Material Changes in Financial Condition~~ below. While there are still uncertainties with respect to Liberty Puerto Rico’s recovery from the hurricanes, and no assurance can be given as to the ultimate amount or timing of liquidity to be received from cash from operations or insurance proceeds, we expect these existing and potential sources of liquidity will be sufficient to satisfy Liberty Puerto Rico’s liquidity requirements over the next twelve months.2022 periods include VTR.

~~C&W.~~ C&W offers services over fixed and mobile networks, and portions of these networks in C&W’s Impacted Markets were significantly damaged as a result of the hurricanes. The most notable markets that continue to be impacted are the British Virgin Islands and Dominica. Services to most of our fixed-line customers in these markets have not yet been restored. While mobile services have been largely restored in C&W’s Impacted Markets, we are still in the process of completing the restoration of our mobile network infrastructure. In addition to network damage, these markets are also dealing with extensive damage to homes, businesses and essential infrastructure.

~~We currently estimate that approximately $50 million of property and equipment additions will be required to restorenearly all of the damaged networks in C&W’s Impacted Markets, of which approximately $21 millionhas been incurred following the hurricanes~~through March 31, 2018. The negative impacts of the hurricanes are declining as the networks are restored and customers are reconnected, and we do not expect there to be a material impact from hurricanes on C&W’s revenue and Adjusted OIBDA during 2018.

Material Changes in Results of Operations

The comparability of our operating results during the three and six months ended June 30, 2023 and 2022 is affected by an acquisition, a disposition and FX. As we use the term, “organic” changes exclude FX and the impacts of acquisitions and disposals, each as further discussed below.

In the following discussion, we quantify the estimated ~~impact of acquisitions (the~~ ~~Acquisition Impact~~)impacts on ~~our operating results. The Acquisition Impact represents our estimate of the difference between~~ the operating results of the periods under comparison that isare attributable to ~~an acquisition. Accordingly,~~acquisitions and disposals. We (i) acquired América Móvil’s operations in Panama during July 2022 and (ii) in connection with the ~~following discussion, (i)~~formation of the Chile JV, disposed of the Chile JV Entities in October 2022. With respect to acquisitions, organic ~~increases~~changes and the calculations of our organic change percentages exclude the operating results of an acquired entity during the first 12 months following the date of ~~acquisition~~acquisition. With respect to disposals, the prior-year operating results of disposed entities are excluded from organic changes and ~~(ii)~~ the ~~calculation~~calculations of our organic change percentages ~~exclude~~to the ~~Acquisition Impact of such entity.~~same extent that those operations are not included in the current year.

Changes in foreign currency exchange rates may have a significant impact on our operating results, as ~~VTR~~Liberty Costa Rica and certain entities within C&W have functional currencies other than the U.S. dollar. ~~Our primary exposure to foreign currency translation effects (~~FX) risk during 2018 was to the Chilean peso as 29.0% of our revenue during the three months ended March 31, 2018 was derived from VTR, whose functional currency is the Chilean peso. In addition, our operating results are impacted by changes in the exchange rates for other local currencies in~~Latin America and the Caribbean.~~ The impacts to the various components of our results of operations that are attributable to changes in FX are highlighted below. For information concerning our foreign currency risks and applicable foreign currency exchange rates, see Item 3. Quantitative and Qualitative Disclosures About Market Risk—Foreign Currency ~~Exchange~~ Rates below.

The amounts presented and discussed below represent 100% of the revenue and ~~Adjusted OIBDA~~expenses of each ~~reportable~~ segment and our corporate ~~operations, as further discussed in note 16 to our condensed consolidated financial statements.~~operations. As we have the ability to control ~~Liberty Puerto Rico and~~ certain subsidiaries ~~of C&W~~ that are not wholly-owned, we include 100% of the revenue and expenses of these entities in our condensed consolidated statements of operations despite the fact that third parties own significant interests in these entities. The noncontrolling owners’ interests in the operating results of (i) certain subsidiaries of C&W and Liberty Puerto Rico, and ~~certain subsidiaries of C&W~~(ii) Liberty Costa Rica are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations.

~~Prior to~~On January 1, 2023, the ~~Split-Off,~~B2B Costa Rican operations within our Liberty ~~Global allocated~~Networks segment was acquired by our Liberty Costa Rica segment. This acquisition did not have a ~~portion of their corporate function costs to us, based primarily~~significant impact on the ~~estimated percentage~~financial results of ~~time spent by corporate personnel providing services to us. Such costs were not intended to reflect the costs of operating as a standalone public company. Accordingly,~~ our corporate-related SG&A costs have increased significantly during 2018, as compared with 2017, as a result of operating as a standalone company and incurring certain public company-related costs. These costs Liberty Networks or Liberty Costa Rica segments.

include executive employee and board of directors expenses; insurance; costs related to the compliance with federal securities laws (including compliance with the Sarbanes-Oxley Act of 2002); and costs for financial reporting, tax administration, human resources functions and centralization of certain other corporate functions~~. These increases in costs are inclusive of costs~~

~~that Liberty Global charges us in connection with certain of the Split-Off Agreements, as further described in note 11 to our condensed consolidated financial statements.~~

We are subject to inflationary pressures with respect to certain costs and foreign currency exchange risk with respect to costs and expenses that are denominated in currencies other than the respective functional currencies of our reportable segments. Any cost increases that we are not able to pass on to our subscribers would result in increased pressure on our operating margins.

Operating Income or Loss

The following tables set forth the organic and non-organic changes in the components of operating income or loss during the three and six months ended June 30, 2023, as compared to the corresponding periods in 2022.


							Increase (decrease) from:
	Three months ended June 30,				Increase (decrease)						An acquisition		A disposition
	2023		2022				FX								Organic
	in millions

Revenue	$	1,122.7	$	1,216.2	$	(93.5)	$	25.0	$	25.0	$	34.8	$	(150.0)	$	(3.3)
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below):
Programming and other direct costs of services	233.4		300.8		(67.4)		5.2				8.9		(45.5)		(36.0)
Other operating costs and expenses	468.5		486.4		(17.9)		10.1				25.1		(70.8)		17.7
Depreciation and amortization	240.5		213.3		27.2		4.9				8.5		—		13.8
Impairment, restructuring and other operating items, net	40.8		568.6		(527.8)		—				—		(2.7)		(525.1)
	983.2		1,569.1		(585.9)		20.2				42.5		(119.0)		(529.6)
Operating income (loss)	$	139.5	$	(352.9)	$	492.4	$	4.8			$	(7.7)	$	(31.0)	$	526.3


							Increase (decrease) from:
	Six months ended June 30,				Increase (decrease)				An acquisition		A disposition
	2023		2022				FX						Organic
	in millions

Revenue	$	2,226.5	$	2,432.4	$	(205.9)	$	39.0	$	69.6	$	(320.8)	$	6.3
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below):
Programming and other direct costs of services	476.8		604.2		(127.4)		8.2		17.8		(100.0)		(53.4)
Other operating costs and expenses	951.6		992.7		(41.1)		15.5		50.2		(143.8)		37.0
Depreciation and amortization	475.1		427.4		47.7		7.6		17.0		—		23.1
Impairment, restructuring and other operating items, net	70.5		576.4		(505.9)		8.2		—		(3.6)		(510.5)
	1,974.0		2,600.7		(626.7)		39.5		85.0		(247.4)		(503.8)
Operating income (loss)	$	252.5	$	(168.3)	$	420.8	$	(0.5)	$	(15.4)	$	(73.4)	$	510.1

As set forth in the tables above, we reported operating income during the three and six months ended June 30, 2023, as compared to operating losses during the corresponding periods in 2022. These changes are primarily due to decreases associated with impairment, restructuring and other operating items, net, the disposition of the Chile JV Entities and organic changes. For further discussion and analysis of organic changes in revenue and costs, see Revenue, Programming and Other Direct Costs of Services, and Other Operating Costs sections below.

Consolidated Adjusted OIBDA

On a consolidated basis, Adjusted OIBDA is a non-U.S. GAAP measure. Adjusted OIBDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance. Adjusted OIBDA is also a key factor that is used by our internal decision makers to determine how to allocate resources to segments. Our internal decision makers believe Adjusted OIBDA is a meaningful measure because it represents a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (i) readily view operating trends, (ii) perform analytical comparisons and benchmarking between segments and (iii) identify strategies to improve operating performance in the different countries in which we operate. We believe our Adjusted OIBDA measure is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measures may not be directly comparable to similar measures used by other public companies. Adjusted OIBDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income or loss.

A reconciliation of total operating income (loss), the nearest U.S. GAAP measure, to Adjusted OIBDA on a consolidated basis, is presented below.


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Operating income (loss)	$	139.5	$	(352.9)	$	252.5	$	(168.3)
Share-based compensation expense	24.5		31.8		53.7		61.8
Depreciation and amortization	240.5		213.3		475.1		427.4
Impairment, restructuring and other operating items, net	40.8		568.6		70.5		576.4
Consolidated Adjusted OIBDA	$	445.3	$	460.8	$	851.8	$	897.3

The following tables set forth the organic and non-organic changes in Adjusted OIBDA during the three and six months ended June 30, 2023, as compared to the corresponding periods in 2022:


	C&W Caribbean		C&W Panama		Liberty Networks		Liberty Puerto Rico		Liberty Costa Rica		VTR		Corporate		Intersegment eliminations		Consolidated
	in millions
Adjusted OIBDA for the three months ending:
June 30, 2022	$	134.5	$	44.4	$	75.1	$	146.1	$	35.6	$	37.9	$	(12.8)	$	—	$	460.8
Organic changes related to:
Revenue	(0.1)		4.4		4.4		(10.8)		0.8		—		0.1		(2.1)		(3.3)
Programming and other direct costs	12.9		2.0		(2.5)		18.9		5.1		—		—		(0.4)		36.0
Other operating costs and expenses	(1.3)		7.4		(4.5)		(12.9)		(1.2)		—		(10.9)		2.5		(20.9)
Non-organic changes related to:
FX	0.3		—		(0.3)		—		9.8		—		—		—		9.8
Acquisition (disposition), net	—		0.8		—		—		—		(37.9)		—		—		(37.1)
June 30, 2023	$	146.3	$	59.0	$	72.2	$	141.3	$	50.1	$	—	$	(23.6)	$	—	$	445.3


	C&W Caribbean		C&W Panama		Liberty Networks		Liberty Puerto Rico		Liberty Costa Rica		VTR		Corporate		Intersegment eliminations		Consolidated
	in millions
Adjusted OIBDA for the six months ending:
June 30, 2022	$	264.4	$	84.9	$	137.7	$	286.7	$	65.8	$	84.4	$	(26.6)	$	—	$	897.3
Organic changes related to:
Revenue	(2.3)		7.7		9.0		(11.7)		6.3		—		0.9		(3.6)		6.3
Programming and other direct costs	29.6		(1.1)		(4.1)		23.9		6.0		—		—		(0.9)		53.4
Other operating costs and expenses	(6.0)		9.4		(5.9)		(23.2)		1.7		—		(18.3)		4.5		(37.8)
Non-organic changes related to:
FX	0.8		—		(0.9)		—		15.5		—		—		—		15.4
Acquisition (disposition), net	—		1.6		—		—		—		(84.4)		—		—		(82.8)
June 30, 2023	$	286.5	$	102.5	$	135.8	$	275.7	$	95.3	$	—	$	(44.0)	$	—	$	851.8

Adjusted OIBDA Margin

The following table sets forth the Adjusted OIBDA Margin of each of our reportable segments:


	Three months ended June 30,		Six months ended June 30,
	2023	2022	2023	2022
	%

C&W Caribbean	41.1	37.8	40.3	37.2
C&W Panama	32.6	31.4	29.6	31.6
Liberty Networks	60.9	64.5	59.7	61.5
Liberty Puerto Rico	40.1	40.3	38.4	39.3
Liberty Costa Rica	37.1	33.0	36.0	30.5

Adjusted OIBDA Margin is impacted by organic changes in revenue, programming and other direct costs of services and other operating costs and expenses. Within our Liberty Puerto Rico, Liberty Costa Rica, and for the 2022 periods, C&W Panama segments, we incurred aggregate integration costs of $5 million and $10 million during the three and six months ended June 30, 2023, respectively, and $6 million and $11 million during the three and six months ended June 30, 2022, respectively.

Revenue

~~All~~Most of our ~~reportable~~ segments derive their revenue primarily from (i) residential ~~broadband communications~~fixed services, including video, broadband internet and fixed-line telephony, ~~services,~~ (ii) ~~with the exception of Liberty Puerto Rico, residential~~ mobile services and (iii) B2B ~~communications~~enterprise services. ~~For detailed information regarding the composition of our reportable segments, see note 16 to our condensed consolidated financial statements.~~Liberty Networks also provides wholesale services over its subsea and terrestrial fiber optic cable networks.

While not specifically discussed in the below explanations of the changes in ~~the~~ revenue, ~~of our reportable segments,~~ we are experiencing significant competition in all of our markets. This competition has an adverse impact on our ability to increase or maintain our RGUs and/or ~~average monthly subscription revenue per average fixed RGU or mobile subscriber, as applicable, (ARPU~~).

ARPU.

Variances in the subscription revenue that we receive from our customers are a function of (i) changes in the number of RGUs or mobile subscribers during the period and (ii) changes in ARPU. Changes in ARPU can be attributable to (i) changes in prices, (ii) changes in bundling or promotional discounts, (iii) changes in the tier of services selected, (iv) variances in subscriber usage patterns and (v) the overall mix of fixed and mobile products ~~within a segment~~ during the period. In the following discussion, we discuss ARPU changes in terms of the net impact of the above factors on the ARPU that is derived from our video, broadband internet, fixed-line telephony and mobile products. ~~At Liberty Puerto Rico, variances~~

The following tables set forth the organic and non-organic changes in revenue by reportable segment during the three and six months ended ~~March 31, 2018,~~June 30, 2023, as compared to the corresponding ~~period~~periods in ~~2017, were significantly impacted by Hurricanes Maria and Irma.~~2022.

~~The following table sets forth revenue by reportable segment:~~


	Three months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				FX		Acquisition (disposition), net		Organic
	in millions

C&W Caribbean	$	356.3	$	355.6	$	0.7	$	0.8	$	—	$	(0.1)
C&W Panama	180.8		141.6		39.2		—		34.8		4.4
Liberty Networks	118.6		116.4		2.2		(2.2)		—		4.4
Liberty Puerto Rico	352.0		362.8		(10.8)		—		—		(10.8)
Liberty Costa Rica	135.2		108.0		27.2		26.4		—		0.8
VTR	—		150.0		(150.0)		—		(150.0)		—
Corporate	5.6		5.5		0.1		—		—		0.1
Intersegment eliminations	(25.8)		(23.7)		(2.1)		—		—		(2.1)
Total	$	1,122.7	$	1,216.2	$	(93.5)	$	25.0	$	(115.2)	$	(3.3)


	Six months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				FX		Acquisition (disposition), net		Organic
	in millions

C&W Caribbean	$	710.1	$	710.4	$	(0.3)	$	2.0	$	—	$	(2.3)
C&W Panama	346.1		268.8		77.3		—		69.6		7.7
Liberty Networks	227.3		224.0		3.3		(5.7)		—		9.0
Liberty Puerto Rico	717.8		729.5		(11.7)		—		—		(11.7)
Liberty Costa Rica	264.4		215.4		49.0		42.7		—		6.3
VTR	—		320.8		(320.8)		—		(320.8)		—
Corporate	12.0		11.1		0.9		—		—		0.9
Intersegment eliminations	(51.2)		(47.6)		(3.6)		—		—		(3.6)
Total	$	2,226.5	$	2,432.4	$	(205.9)	$	39.0	$	(251.2)	$	6.3

Three months ended March 31, Increase (decrease)
2018 2017 $ %
in millions, except percentages

C&W $ 585.5
$ 575.6
$ 9.9
1.7
VTR 263.8
229.3
34.5
15.0
Liberty Puerto Rico 61.8
106.7
(44.9 ) (42.1 )
Intersegment eliminations (1.2 ) (0.7 ) (0.5 ) N.M.
Total $ 909.9
$ 910.9
$ (1.0 ) (0.1 )

~~N.M.~~ — ~~Not Meaningful.~~

~~Consolidated.~~ ~~The decrease~~C&W Caribbean. during the three months ended March 31, 2018, as compared to the corresponding period in 2017, includes a decrease of $45 million at Liberty Puerto Rico primarily attributable to the hurricanes, and increases of $10 million and $23 million attributable to the impacts of the C&W Carve-out Acquisition and FX, respectively. Excluding the effects of the C&W Carve-out Acquisition and FX, revenue decreased $34 million or 3.7%. The organic decrease includes declines of $45 million and $1 million at Liberty Puerto Rico and C&W, respectively, and an increase of $13 million at VTR, as further discussed below.

As further described in notes 2 and 3 to our condensed consolidated financial statements, we adopted ASU 2014-09 effective January 1, 2018 using the cumulative effect transition method. The impact to revenue during three months ended March 31, 2018 was not material.

~~C&W.~~ ~~C&W’s~~Caribbean’s revenue by major category is set forth below:


	Three months ended June 30,				Increase (decrease)
	2023		2022		$		%
	in millions, except percentages
Residential revenue:
Residential fixed revenue:



Subscription revenue	$	121.4	$	119.6	$	1.8	2
Non-subscription revenue	7.7		8.5		(0.8)		(9)
Total residential fixed revenue	129.1		128.1		1.0		1
Residential mobile revenue:
Service revenue	81.3		77.6		3.7		5
Interconnect, inbound roaming, equipment sales and other	18.6		16.3		2.3		14
Total residential mobile revenue	99.9		93.9		6.0		6
Total residential revenue	229.0		222.0		7.0		3

B2B revenue	127.3		133.6		(6.3)		(5)


Total	$	356.3	$	355.6	$	0.7	—


	Six months ended June 30,				Increase (decrease)
	2023		2022		$		%
	in millions, except percentages
Residential revenue:
Residential fixed revenue:



Subscription revenue	$	241.3	$	241.3	$	—	—
Non-subscription revenue	14.7		17.6		(2.9)		(16)
Total residential fixed revenue	256.0		258.9		(2.9)		(1)
Residential mobile revenue:
Service revenue	161.4		154.1		7.3		5
Interconnect, inbound roaming, equipment sales and other	39.3		30.8		8.5		28
Total residential mobile revenue	200.7		184.9		15.8		9
Total residential revenue	456.7		443.8		12.9		3

B2B revenue	253.4		266.6		(13.2)		(5)


Total	$	710.1	$	710.4	$	(0.3)	—

Three months ended March 31, Increase (decrease)
2018 2017 $ %
in millions, except percentages
Residential revenue:
Residential fixed revenue:
Subscription revenue:
Video $ 42.7
$ 40.5
$ 2.2
5.4
Broadband internet 53.7
52.8
0.9
1.7
Fixed-line telephony 26.9
29.3
(2.4 ) (8.2 )
Total subscription revenue 123.3
122.6
0.7
0.6
Non-subscription revenue 21.5
23.5
(2.0 ) (8.5 )
Total residential fixed revenue 144.8
146.1
(1.3 ) (0.9 )
Residential mobile revenue:
Subscription revenue 155.1
161.8
(6.7 ) (4.1 )
Non-subscription revenue 22.1
19.9
2.2
11.1
Total residential mobile revenue 177.2
181.7
(4.5 ) (2.5 )
Total residential revenue 322.0
327.8
(5.8 ) (1.8 )
B2B revenue:
Non-subscription revenue 203.9
201.4
2.5
1.2
Sub-sea network revenue 59.6
46.4
13.2
28.4
Total B2B revenue 263.5
247.8
15.7
6.3
Total $ 585.5
$ 575.6
$ 9.9
1.7

The details of the changes in C~~&W’s~~&W Caribbean’s revenue during the three and six months ended ~~March 31, 2018,~~June 30, 2023, as compared to the corresponding ~~period~~periods in ~~2017,~~2022, are set forth ~~below:~~below (in millions):


	Three-month comparison		Six-month comparison
Increase (decrease) in residential fixed subscription revenue due to change in:
Average number of RGUs (a)	$	1.2	$	1.2
ARPU (b)	0.7		(1.9)
Decrease in residential fixed non-subscription revenue (c)	(0.9)		(3.0)
Total increase (decrease) in residential fixed revenue	1.0		(3.7)
Increase in residential mobile service revenue (d)	3.5		6.9
Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e)	2.3		8.5
Decrease in B2B revenue (f)	(6.9)		(14.0)

Total organic decrease	(0.1)		(2.3)
Impact of FX	0.8		2.0
Total	$	0.7	$	(0.3)

(a)The increases are primarily due to higher average broadband internet RGUs partially offset by lower average video RGUs.

(b)The changes during the comparison periods are primarily due to lower ARPU from fixed-line telephony services, due in part to fixed-mobile convergence efforts, and higher ARPU from broadband internet and video services. During the six-month comparison, lower ARPU from telephony services more than offset increases in ARPU from broadband internet and video services.

(c)The decreases are primarily attributable to the removal of certain programming rights.

(d)The increases are primarily attributable to higher average numbers of postpaid mobile subscribers, mostly due to growth from fixed-mobile convergence efforts, partially offset by a decrease in postpaid ARPU.

(e)The increases are primarily attributable to an increase in inbound roaming driven by higher traffic.

(f)The decreases are attributable to the net effect of(i) discontinuing an internet transit services arrangement at C&W Jamaica, which decrease will continue for the remainder of 2023, and (ii) higher fixed and managed services, primarily due to broadband internet services-related growth.

Subscription
revenue

Non-subscription
revenue
Total
in millions
Increase (decrease) in residential fixed subscription revenue due to change in:
Average number of RGUs (a) $ 4.0
$ —
$ 4.0
ARPU (b) (3.7 ) —
(3.7 )
Decrease in residential fixed non-subscription revenue (c) —
(2.0 ) (2.0 )
Total increase (decrease) in residential fixed revenue 0.3
(2.0 ) (1.7 )
Increase (decrease) in residential mobile revenue (d) (7.1 ) 2.2
(4.9 )
Increase in B2B revenue (e) —
0.1
0.1
Increase in B2B sub-sea network revenue (f) —
5.1
5.1
Total organic increase (decrease) (6.8 ) 5.4
(1.4 )
Impact of the C&W Carve-out Acquisition —
9.5
9.5
Impact of FX 0.8
1.0
1.8
Total $ (6.0 ) $ 15.9
$ 9.9


~~(a)~~	~~The increase is primarily attributable to higher broadband internet RGUs.~~


~~(b)~~	~~The decrease is primarily attributable to the net effect of (i) lower ARPU from fixed-line telephony and broadband internet services and (ii) higher ARPU from video services.~~


~~(c)~~	~~The decrease is primarily attributable to lower advertising revenue and late fees.~~

~~(d)~~

~~The decrease in mobile subscription revenue is primarily attributable to the net effect of (i) lower revenue in (a) the Bahamas~~associated with a decrease in the average number of subscribers and lower ARPU, primarily driven by the commercial launch of mobile services by a competitor during the fourth quarter of 2016, and (b) Panama due primarily to a decrease in the average number of subscribers and (ii) higher revenue in Jamaica mostly due to higher ARPU. The increase in mobile non-subscription revenue is primarily attributable to an increase in revenue from handset sales.


~~(e)~~	The increase is primarily attributable to (i) project-related revenue in managed services, driven by increases in Jamaica that were partially offset by decreases in Panama and (ii) individually insignificant changes across the markets of C&W.


~~(f)~~	~~The increase is primarily due to increased capacity sales on C&W’s sub-sea network to new and existing customers.~~

~~VTR.~~C&W Panama. ~~VTR’s~~C&W Panama’s revenue by major category is set forth below:


	Three months ended June 30,				Increase (decrease)
	2023		2022		$		%
	in millions, except percentages
Residential revenue:
Residential fixed revenue:




Subscription revenue	$	28.7	$	24.1	$	4.6	19
Non-subscription revenue	1.4		1.8		(0.4)		(22)
Total residential fixed revenue	30.1		25.9		4.2		16
Residential mobile revenue:
Service revenue	65.8		43.9		21.9		50
Interconnect, inbound roaming, equipment sales and other	13.6		11.1		2.5		23
Total residential mobile revenue	79.4		55.0		24.4		44
Total residential revenue	109.5		80.9		28.6		35

B2B revenue	71.3		60.7		10.6		17
Total	$	180.8	$	141.6	$	39.2	28


	Six months ended June 30,				Increase (decrease)
	2023		2022		$		%
	in millions, except percentages
Residential revenue:
Residential fixed revenue:




Subscription revenue	$	57.0	$	47.8	$	9.2	19
Non-subscription revenue	2.8		4.0		(1.2)		(30)
Total residential fixed revenue	59.8		51.8		8.0		15
Residential mobile revenue:
Service revenue	130.8		86.9		43.9		51
Interconnect, inbound roaming, equipment sales and other	26.9		21.5		5.4		25
Total residential mobile revenue	157.7		108.4		49.3		45
Total residential revenue	217.5		160.2		57.3		36

B2B revenue	128.6		108.6		20.0		18
Total	$	346.1	$	268.8	$	77.3	29

Three months ended March 31, Increase
2018 2017 $ %
in millions, except percentages
Residential revenue:
Residential fixed revenue:
Subscription revenue:
Video $ 99.7
$ 87.4
$ 12.3
14.1
Broadband internet 96.6
82.3
14.3
17.4
Fixed-line telephony 34.6
34.3
0.3
0.9
Total subscription revenue 230.9
204.0
26.9
13.2
Non-subscription revenue 7.5
7.4
0.1
1.4
Total residential fixed revenue 238.4
211.4
27.0
12.8
Residential mobile revenue:
Subscription revenue 16.3
12.6
3.7
29.4
Non-subscription revenue 3.2
2.3
0.9
39.1
Total residential mobile revenue 19.5
14.9
4.6
30.9
Total residential revenue 257.9
226.3
31.6
14.0
B2B revenue:
Subscription revenue 5.6
2.7
2.9
107.4
Non-subscription revenue 0.3
0.3
—
—
Total B2B revenue 5.9
3.0
2.9
96.7
Total $ 263.8
$ 229.3
$ 34.5
15.0

The details of the changes in ~~VTR’s~~C&W Panama’s revenue during the three and six months ended ~~March 31, 2018,~~June 30, 2023, as compared to the corresponding ~~period~~periods in ~~2017,~~2022, are set forth below (in millions):


	Three-month comparison		Six-month comparison
Increase (decrease) in residential fixed subscription revenue due to change in:
Average number of RGUs (a)	$	2.4	$	5.5
ARPU	(0.1)		(1.0)
Decrease in residential fixed non-subscription revenue	(0.6)		(1.5)
Total increase in residential fixed revenue	1.7		3.0
Increase in residential mobile service revenue (b)	0.3		0.8
Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (c)	(2.4)		(4.5)
Increase in B2B revenue (d)	4.8		8.4
Total organic increase	4.4		7.7
Impact of an acquisition	34.8		69.6
Total	$	39.2	$	77.3

(a)Theincreases are primarily due to higher average broadband internet and video RGUs.

(b)The increases are primarily due to the net effect of (i) higher ARPU, mainly attributable to higher prepaid recharging activity, (ii) lower average numbers of prepaid mobile subscribers and (iii) higher average numbers of postpaid mobile subscribers.

(c)The decreases are mainly due to lower interconnect revenue driven by lower traffic.

(d)The increases are primarily due to (i) increases in revenue from government-related projects and (ii) higher revenue from data services. In addition, for the six-month comparison, the increase is due to higher revenue from mobile services.

Liberty Networks.Liberty Networks’ revenue by major category is set forth below:


	Three months ended June 30,				Increase
	2023		2022		$		%
	in millions, except percentages













B2B revenue:
Enterprise revenue	$	29.2	$	28.5	$	0.7	2
Wholesale revenue	89.4		87.9		1.5		2

Total	$	118.6	$	116.4	$	2.2	2


	Six months ended June 30,				Increase
	2023		2022		$		%
	in millions, except percentages













B2B revenue:
Enterprise revenue	$	57.0	$	56.9	$	0.1	—
Wholesale revenue	170.3		167.1		3.2		2

Total	$	227.3	$	224.0	$	3.3	1

Subscription
revenue

Non-subscription
revenue
Total
in millions
Increase in residential fixed subscription revenue due to change in:
Average number of RGUs (a) $ 4.1
$ —
$ 4.1
ARPU (b) 4.1
—
4.1
Decrease in residential fixed non-subscription revenue —
(0.5 ) (0.5 )
Total increase (decrease) in residential fixed revenue 8.2
(0.5 ) 7.7
Increase in residential mobile revenue (c) 2.4
0.6
3.0
Increase in B2B revenue (d) 2.4
0.1
2.5
Total organic increase 13.0
0.2
13.2
Impact of FX 20.5
0.8
21.3
Total $ 33.5
$ 1.0
$ 34.5

The details of the changes in Liberty Networks’ revenue during the three and six months ended June 30, 2023, as compared to the corresponding periods in 2022, are set forth below (in millions):


	Three-month comparison		Six-month comparison

Increase in enterprise revenue (a)	$	2.1	$	3.7
Increase in wholesale revenue (b)	2.3		5.3
Total organic increase	4.4		9.0
Impact of FX	(2.2)		(5.7)
Total	$	2.2	$	3.3

(a)The increases are primarily attributable to (i) higher B2B connectivity revenue, (ii) growth in managed services and (iii) increases associated with sales-type leases on CPE installed on long-term customer solutions.

(b)The increases are primarily due to the net effect of (i) higher lease capacity revenue driven by an increase associated with revenue recognized on a cash basis for services provided to a significant customer, (ii) higher affiliate revenue and (iii) lower amortized prepaid capacity and operating and maintenance revenue driven by the cancellation of prepaid capacity contracts in prior periods.


~~(a)~~	~~The increase is attributable to the net effect of (i) higher broadband internet and video RGUs and (ii) lower fixed-line telephony RGUs.~~


~~(b)~~	~~The increase is primarily due to higher ARPU from video services and an improvement in RGU mix.~~


~~(c)~~	~~The increase in mobile subscription revenue is primarily due to a higher average number of mobile subscribers.~~


~~(d)~~	The increase in B2B subscription revenue is primarily attributable to higher average numbers of broadband internet, video and fixed-line telephony SOHO RGUs. A portion of this increase is attributable to the conversion of certain residential subscribers to SOHO customers.

Liberty Puerto Rico.Due to the significant impact of the hurricanes on the operations of our Liberty Puerto Rico segment, we have provided supplementary sequential information in order to provide a meaningful analysis of Liberty Puerto Rico’s business, including recovery after the hurricanes. Accordingly, Liberty Puerto Rico’s revenue by major category ~~during each of the three months ended March 31, 2018, December 31, 2017 and March 31, 2017~~ is set forth below:


	Three months ended June 30,				Increase (decrease)
	2023		2022		$		%
	in millions, except percentages
Residential fixed revenue:
Residential fixed revenue:



Subscription revenue	$	121.1	$	115.5	$	5.6	5
Non-subscription revenue	6.0		5.6		0.4		7
Total residential fixed revenue	127.1		121.1		6.0		5
Residential mobile revenue:
Service revenue	102.8		114.3		(11.5)		(10)
Interconnect, inbound roaming, equipment sales and other	54.9		59.9		(5.0)		(8)
Total residential mobile revenue	157.7		174.2		(16.5)		(9)
Total residential revenue	284.8		295.3		(10.5)		(4)
B2B revenue	56.2		57.3		(1.1)		(2)
Other revenue	11.0		10.2		0.8		8
Total	$	352.0	$	362.8	$	(10.8)	(3)

Three months ended
March 31, 2018 December 31, 2017 March 31, 2017
in millions
Residential fixed revenue:
Subscription revenue:
Video $ 23.3
$ 5.3
$ 42.7
Broadband internet 25.3
7.8
40.4
Fixed-line telephony 3.5
1.2
6.4
Total subscription revenue 52.1
14.3
89.5
Non-subscription revenue 1.7
0.5
5.9
Total residential fixed revenue 53.8
14.8
95.4
B2B revenue:
Subscription revenue 4.3
1.3
6.7
Non-subscription revenue 3.0
0.7
3.3
Total B2B revenue 7.3
2.0
10.0
Other revenue 0.7
0.1
1.3
Total $ 61.8
$ 16.9
$ 106.7


	Six months ended June 30,				Increase (decrease)
	2023		2022		$		%
	in millions, except percentages
Residential revenue:
Residential fixed revenue:



Subscription revenue	$	238.1	$	231.3	$	6.8	3
Non-subscription revenue	11.7		11.0		0.7		6
Total residential fixed revenue	249.8		242.3		7.5		3
Residential mobile revenue:
Service revenue	206.5		231.3		(24.8)		(11)
Interconnect, inbound roaming, equipment sales and other	126.3		124.1		2.2		2
Total residential mobile revenue	332.8		355.4		(22.6)		(6)
Total residential revenue	582.6		597.7		(15.1)		(3)
B2B revenue	111.9		111.3		0.6		1
Other revenue	23.3		20.5		2.8		14
Total	$	717.8	$	729.5	$	(11.7)	(2)

The ~~decrease~~details of the changes in Liberty Puerto Rico’s revenue during the three and six months ended ~~March 31, 2018,~~June 30, 2023, as compared to the ~~three months ended March 31, 2017, is~~corresponding periods in 2022, are set forth below (in millions):


	Three-month comparison		Six-month comparison
Increase (decrease) in residential fixed subscription revenue due to change in:
Average number of RGUs (a)	$	4.4	$	9.6
ARPU (b)	1.2		(2.8)
Increase in residential fixed non-subscription revenue	0.4		0.7
Total increase in residential fixed revenue	6.0		7.5
Decrease in residential mobile service revenue (c)	(11.5)		(24.8)
Increase (decrease) in residential mobile interconnect, inbound roaming, equipment sales and other revenue (d)	(5.0)		2.2
Increase (decrease) in B2B revenue	(1.1)		0.6
Increase in other revenue (e)	0.8		2.8
Total	$	(10.8)	$	(11.7)

(a)The increases are primarily attributable to ~~Hurricanes Maria~~higher average broadband internet RGUs.

(b)The changes, which include the impact of credits issued to customers during the second quarter of 2022 as a result of power outages, are primarily attributable to the net effect of (i) lower ARPU from broadband internet services, driven by customer downgrades to low-tier plans, and ~~Irma.~~(ii) higher ARPU from video services, as rate increases were only party offset by customer downgrades to lower ARPU plans.

(c)The ~~table below presents changes in (i) residential fixed subscription revenue~~decreases are primarily due to ~~changes~~(i) lower ARPU from mobile services, primarily resulting from (a) a higher number of low-cost and discounted plans and (b) higher contract asset amortization driven by increases in handset sales and subsidy levels, and (ii) declines in the average number of ~~RGUs and ARPU, (ii) residential fixed non-subscription revenue, (iii) B2B~~prepaid mobile subscribers.

(d)The decrease for the three-month comparison is primarily due to lower inbound roaming revenue and ~~(iv) other~~lower volumes of handset sales. The increase for the six-month comparison is primarily due to the net effect of higher volumes of handset sales and lower inbound roaming revenue.

(e)The increases are primarily attributable to funds received from the FCC to continue to expand and improve our fixed network in Puerto Rico.

Liberty Costa Rica. Liberty Costa Rica’s revenue ~~each reflective~~by major category is set forth below:


	Three months ended June 30,				Increase
	2023		2022		$		%
	in millions, except percentages
Residential revenue:
Residential fixed revenue:
Subscription revenue	$	39.4	$	33.4	$	6.0	18
Non-subscription revenue	2.6		0.8		1.8		225
Total residential fixed revenue	42.0		34.2		7.8		23
Residential mobile revenue:
Service revenue	60.3		48.6		11.7		24
Interconnect, inbound roaming, equipment sales and other	19.1		15.6		3.5		22
Total residential mobile revenue	79.4		64.2		15.2		24
Total residential revenue	121.4		98.4		23.0		23
B2B revenue	13.8		9.6		4.2		44
Total	$	135.2	$	108.0	$	27.2	25


	Six months ended June 30,				Increase
	2023		2022		$		%
	in millions, except percentages
Residential revenue:
Residential fixed revenue:
Subscription revenue	$	77.2	$	68.1	$	9.1	13
Non-subscription revenue	5.1		1.6		3.5		219
Total residential fixed revenue	82.3		69.7		12.6		18
Residential mobile revenue:
Service revenue	118.1		94.8		23.3		25
Interconnect, inbound roaming, equipment sales and other	37.1		32.1		5.0		16
Total residential mobile revenue	155.2		126.9		28.3		22
Total residential revenue	237.5		196.6		40.9		21
B2B revenue	26.9		18.8		8.1		43
Total	$	264.4	$	215.4	$	49.0	23

The details of the changes in Liberty Costa Rica’s revenue during the three and six months ended ~~March 31, 2018,~~June 30, 2023, as compared to the ~~three months ended December 31, 2017.~~corresponding periods in 2022, are set forth below (in millions):


	Three-month comparison		Six-month comparison
Increase (decrease) in residential fixed subscription revenue due to change in:
Average number of RGUs (a)	$	—	$	1.4
ARPU (b)	(1.9)		(4.9)
Increase in residential fixed non-subscription revenue (c)	1.4		2.8
Total decrease in residential fixed revenue	(0.5)		(0.7)
Increase (decrease) in residential mobile service revenue (d)	(0.3)		3.9
Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue	(0.3)		(1.2)
Increase in B2B revenue (e)	1.9		4.3
Total organic increase	0.8		6.3
Impact of FX	26.4		42.7
Total	$	27.2	$	49.0

(a)During the three-month comparison, the increase from higher average broadband internet and fixed-line telephony RGUs was fully offset by a decrease associated with lower average video subscribers. The increase for the six-month comparison is due to the net effect of (i) higher average broadband internet and fixed-line telephony subscribers and (ii) lower average video subscribers.

Subscription
revenue

Non-subscription
revenue
Total
in millions
Increase in residential fixed subscription revenue due to change in:
Average number of RGUs (a) $ 35.5
$ —
$ 35.5
ARPU (b) 2.3
—
2.3
Increase in residential fixed non-subscription revenue (c) —
1.2
1.2
Total increase in residential fixed revenue 37.8
1.2
39.0
Increase in B2B revenue (d) 3.0
2.3
5.3
Increase in other revenue —
0.6
0.6
Total $ 40.8
$ 4.1
$ 44.9
(b)The decreases are primarily attributable to lower ARPU from video and broadband internet services, in part due to (i) higher retention discounts and (ii) declines in higher ARPU plans.


~~(a)~~	The increase is attributable to increases in broadband internet, video and fixed-line telephony RGUs, primarily due to the reconnection of subscribers associated with the recovery in Puerto Rico following the hurricanes.


~~(b)~~	~~The increase is primarily attributable to reconnecting higher ARPU customers during the first quarter of 2018.~~


~~(c)~~	~~The increase is primarily due to higher late fees, advertising revenue and reconnect fees resulting from Liberty Puerto Rico’s ongoing recovery from the hurricanes.~~

~~(d)~~

The increase in subscription revenue is primarily attributable to increases in broadband internet, fixed-line telephony and video SOHO RGUs, primarily due to the reconnection of subscribers associated with the recovery in Puerto Rico following the hurricanes. The increase in non-subscription revenue is primarily attributable to higher revenue from broadband internet services, resulting from the restoration of fiber circuits to Liberty Puerto Rico’s B2B customers.

(c)The increases are primarily attributable to higher volumes of CPE sales.

(d)The changes for the comparison periods are primarily due to (i) higher average postpaid mobile subscribers and (ii) lower prepaid and postpaid mobile ARPU. For the six-month comparison, the impact of higher average mobile subscribers more than offset the decreases in mobile ARPU.

(e)The increases are primarily attributable to the B2B operations within our Liberty Networks segment that was acquired by the Liberty Costa Rica segment in January 2023.

Programming and ~~Other Direct Costs~~other direct costs of ~~Services~~services

~~General.~~Programming and other direct costs of services include programming and copyright costs, ~~mobile~~interconnect and access ~~and interconnect~~ costs, equipment costs, which primarily relate to costs of mobile handsets and other devices, and other direct costs related to our operations. ~~Notwithstanding the impact of the hurricanes, programming~~Programming and copyright costs, which represent a significant portion of our operating costs, ~~are expected to rise~~may increase in future periods as a result of (i) higher costs associated with the expansion of our digital video content, including rights associated with ancillary product offerings and rights that provide for the broadcast of live sporting events, (ii) rate increases ~~and~~or (iii) growth in the number of our ~~enhanced~~ video subscribers.

Consolidated. The following ~~table sets~~tables set forth ~~programming~~the organic and ~~other direct costs of services by reportable segment:~~

Three months ended March 31, Increase (decrease)
2018 2017 $ %
in millions, except percentages

C&W $ 130.2
$ 133.4
$ (3.2 ) (2.4 )
VTR 70.5
61.6
8.9
14.4
Liberty Puerto Rico 16.5
27.6
(11.1 ) (40.2 )
Intersegment eliminations (1.4 ) (0.7 ) (0.7 ) N.M.
Total $ 215.8
$ 221.9
$ (6.1 ) (2.7 )

~~N.M. — Not Meaningful.~~

~~Consolidated. The decrease~~non-organic changes in programming and other direct costs of services ~~during~~on a consolidated basis.


	Three months ended June 30,				Decrease		Increase (decrease) from:
									An acquisition		A disposition
	2023		2022				FX						Organic
	in millions

Programming and copyright	$	59.4	$	101.2	$	(41.8)	$	1.7	$	0.5	$	(36.9)	$	(7.1)
Interconnect	74.8		88.4		(13.6)		1.5		3.8		(7.4)		(11.5)
Equipment and other	99.2		111.2		(12.0)		2.0		4.6		(1.2)		(17.4)
Total programming and other direct costs of services	$	233.4	$	300.8	$	(67.4)	$	5.2	$	8.9	$	(45.5)	$	(36.0)


	Six months ended June 30,				Decrease		Increase (decrease) from:
									An acquisition		A disposition
	2023		2022				FX						Organic
	in millions

Programming and copyright	$	120.1	$	210.5	$	(90.4)	$	2.8	$	1.0	$	(82.6)	$	(11.6)
Interconnect	149.1		174.1		(25.0)		2.4		7.6		(15.1)		(19.9)
Equipment and other	207.6		219.6		(12.0)		3.0		9.2		(2.3)		(21.9)
Total programming and other direct costs of services	$	476.8	$	604.2	$	(127.4)	$	8.2	$	17.8	$	(100.0)	$	(53.4)

C&W Caribbean. The following tables set forth the ~~three months ended March 31, 2018, as compared to the corresponding period~~organic and non-organic changes in 2017, includes a decrease of $11 million at Liberty Puerto Rico primarily attributable to the hurricanes, an increase of $4 million attributable to the impact of the C&W Carve-out Acquisition and an increase of $6 million due to FX. Excluding the effects of the C&W Carve-out Acquisition and FX, our programming and other direct costs of services ~~decreased $17 million or 7.5%.~~ for our C&W Caribbean segment.


	Three months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				FX		Organic
	in millions

Programming and copyright	$	18.0	$	22.5	$	(4.5)	$	—	$	(4.5)
Interconnect	19.2		29.2		(10.0)		0.2		(10.2)
Equipment and other	21.2		19.4		1.8		—		1.8
Total programming and other direct costs of services	$	58.4	$	71.1	$	(12.7)	$	0.2	$	(12.9)


	Six months ended June 30,				Decrease		Increase (decrease) from:
	2023		2022				FX		Organic
	in millions

Programming and copyright	$	37.2	$	45.9	$	(8.7)	$	0.1	$	(8.8)
Interconnect	37.9		58.2		(20.3)		0.3		(20.6)
Equipment and other	40.4		40.5		(0.1)		0.1		(0.2)
Total programming and other direct costs of services	$	115.5	$	144.6	$	(29.1)	$	0.5	$	(29.6)

•Programming and copyright: The organic ~~decrease includes declines~~decreases are primarily due to (i) the removal of ~~$8 million~~certain programming rights and ~~$11 million~~(ii) the renegotiation of certain content agreements.

•Interconnect: The organic decreases are primarily due to discontinuing an internet transit services arrangement at C&W ~~and Liberty Puerto Rico, respectively, and an increase~~Jamaica as of ~~$3 million at VTR, as further discussed below.~~January 1, 2023.

C~~&W.~~ &W Panama.The ~~decrease~~following tables set forth the organic and non-organic changes in ~~C&W’s~~ programming and other direct costs of services ~~includes an increase of $4 million~~for our C&W Panama segment.


	Three months ended June 30,				Increase		Increase (decrease) from:
	2023		2022				An acquisition		Organic
	in millions

Programming and copyright	$	5.1	$	4.3	$	0.8	$	0.5	$	0.3
Interconnect	16.9		15.2		1.7		3.8		(2.1)
Equipment and other	33.1		28.7		4.4		4.6		(0.2)
Total programming and other direct costs of services	$	55.1	$	48.2	$	6.9	$	8.9	$	(2.0)


	Six months ended June 30,				Increase		Increase (decrease) from:
	2023		2022				An acquisition		Organic
	in millions

Programming and copyright	$	10.1	$	8.3	$	1.8	$	1.0	$	0.8
Interconnect	35.4		30.4		5.0		7.6		(2.6)
Equipment and other	58.4		46.3		12.1		9.2		2.9
Total programming and other direct costs of services	$	103.9	$	85.0	$	18.9	$	17.8	$	1.1

•Interconnect: The organic decreases are primarily attributable to a reduction in traffic.

•Equipment and other: The organic increase for the ~~impact of the C&W Carve-out Acquisition and an increase of $1 million~~six-month comparison is primarily due to ~~FX. Excluding~~higher costs associated with certain government-related projects.

Liberty Networks. The following tables set forth the ~~effects of the C&W Carve-out Acquisition~~organic and ~~FX, C&W’s~~non-organic changes in programming and other direct costs of services ~~decreased $8 million or 6.0%. This decrease includes the following factors:~~for our Liberty Networks segment.

~~A decrease in mobile handset costs of $5 million or 20.7%,~~


	Three months ended June 30,				Increase		Increase (decrease) from:
	2023		2022				FX		Organic
	in millions


Interconnect	$	11.6	$	11.0	$	0.6	$	(0.4)	$	1.0
Equipment and other	4.7		3.4		1.3		(0.2)		1.5
Total programming and other direct costs of services	$	16.3	$	14.4	$	1.9	$	(0.6)	$	2.5


	Six months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				FX		Organic
	in millions


Interconnect	$	22.7	$	22.9	$	(0.2)	$	(0.6)	$	0.4
Equipment and other	9.3		6.4		2.9		(0.8)		3.7
Total programming and other direct costs of services	$	32.0	$	29.3	$	2.7	$	(1.4)	$	4.1

•Equipment and other: The organic increases are primarily due to (i) lower ~~mobile handset sales;~~amounts of capitalizable costs associated with licenses, as part of a migration into contracts with shorter terms and more cloud-based arrangements, (ii) increases in costs associated with software licenses and (iii) higher costs associated with sales-type leases on CPE installed on long-term customer solutions.

~~A decrease in mobile access and interconnect costs of $1 million or 2.0%, primarily due to lower call volumes; and~~

~~A net decrease resulting from other individually insignificant~~Liberty Puerto Rico. The following tables set forth the changes in ~~other direct cost categories.~~

~~VTR.~~ ~~The increase in VTR’s~~ programming and other direct costs of services for our Liberty Puerto Rico segment.



	Three months ended June 30,				Increase (decrease)
	2023		2022
	in millions

Programming and copyright	$	28.3	$	28.3	$	—
Interconnect	23.0		21.9		1.1
Equipment and other	32.8		52.8		(20.0)
Total programming and other direct costs of services	$	84.1	$	103.0	$	(18.9)



	Six months ended June 30,				Increase (decrease)
	2023		2022
	in millions

Programming and copyright	$	56.6	$	55.9	$	0.7
Interconnect	45.1		41.3		3.8
Equipment and other	84.8		113.2		(28.4)
Total programming and other direct costs of services	$	186.5	$	210.4	$	(23.9)

•Programming and copyright: The changes are primarily due to the net effect of higher programming rates and lower average subscribers.

•Interconnect: The increases are primarily due to higher roaming costs.

•Equipment and other: The decreases are primarily associated with (i) equipment credits received during the first and second quarters of 2023 for historical handset purchases, (ii) lower handset sales, (iii) lower equipment-related integration costs associated with the AT&T Acquisition ~~includes an increase~~and (iv) decreases related to a lower of ~~$6 million~~cost or market adjustment on equipment-related inventory recognized during the second quarter of 2022.

Liberty Costa Rica~~due to FX. Excluding~~. The following tables set forth the ~~effect of FX, VTR’s~~organic and non-organic changes in programming and other direct costs of services for our Liberty Costa Rica segment.


	Three months ended June 30,				Increase (decrease)		Increase (decrease) from:

	2023		2022				FX		Organic
	in millions

Programming and copyright	$	8.3	$	8.9	$	(0.6)	$	1.7	$	(2.3)
Interconnect	8.3		9.1		(0.8)		1.7		(2.5)
Equipment and other	11.5		9.6		1.9		2.2		(0.3)
Total programming and other direct costs of services	$	28.1	$	27.6	$	0.5	$	5.6	$	(5.1)


	Six months ended June 30,				Increase (decrease)		Increase (decrease) from:

	2023		2022				FX		Organic
	in millions

Programming and copyright	$	16.8	$	17.8	$	(1.0)	$	2.7	$	(3.7)
Interconnect	16.5		16.3		0.2		2.7		(2.5)
Equipment and other	22.8		18.9		3.9		3.7		0.2
Total programming and other direct costs of services	$	56.1	$	53.0	$	3.1	$	9.1	$	(6.0)

•Programming and copyright: The organic decreases are primarily due to (i) the positive impact of FX associated with non-CRC denominated contracts and (ii) lower programming costs associated with declines in video RGUs.

•Interconnect: The organic decreases are primarily due to lower volumes of local and international traffic.

•Equipment and other: The organic changes are primarily due to the net effect of (i) the positive impact of FX associated with non-CRC denominated handset costs and (ii) higher CPE costs associated with sales growth.

Other operating costs and expenses

Other operating costs and expenses set forth in the tables below comprise the following cost categories:

•Personnel and contract labor-related costs, which primarily include salary-related and cash bonus expenses, net of capitalizable labor costs, and temporary contract labor costs;

•Network-related expenses, which primarily include costs related to network access, system power, core network, and CPE repair, maintenance and test costs;

•Service-related costs, which primarily include professional services, information technology-related services, audit, legal and other services;

•Share-based compensation expense that relates to (i) equity awards issued to our employees and Directors and (ii) certain bonus-related expenses that are paid in the form of equity.

Consolidated.The following tables set forth the organic and non-organic changes in other operating costs and expenses on a consolidated basis.


	Three months ended June 30,				Increase (decrease)		Increase (decrease) from:
									An acquisition		A disposition
	2023		2022				FX						Organic
	in millions

Personnel and contract labor	$	140.2	$	145.1	$	(4.9)	$	1.1	$	3.0	$	(13.2)	$	4.2
Network-related	61.6		78.9		(17.3)		1.6		4.5		(19.7)		(3.7)
Service-related	58.3		54.6		3.7		1.2		0.7		(9.1)		10.9
Commercial	44.6		58.1		(13.5)		2.8		4.9		(16.9)		(4.3)
Facility, provision, franchise and other	139.3		117.9		21.4		3.3		12.0		(7.7)		13.8
Share-based compensation expense	24.5		31.8		(7.3)		0.1		—		(4.2)		(3.2)
Total other operating costs and expenses	$	468.5	$	486.4	$	(17.9)	$	10.1	$	25.1	$	(70.8)	$	17.7


	Six months ended June 30,				Increase (decrease)		Increase (decrease) from:
									An acquisition		A disposition
	2023		2022				FX						Organic
	in millions

Personnel and contract labor	$	287.3	$	298.3	$	(11.0)	$	1.3	$	6.0	$	(27.2)	$	8.9
Network-related	128.4		161.5		(33.1)		2.4		9.0		(38.2)		(6.3)
Service-related	108.9		105.8		3.1		2.0		1.4		(16.5)		16.2
Commercial	89.1		123.6		(34.5)		4.7		9.8		(39.5)		(9.5)
Facility, provision, franchise and other	284.2		241.7		42.5		5.0		24.0		(15.0)		28.5
Share-based compensation expense	53.7		61.8		(8.1)		0.1		—		(7.4)		(0.8)
Total other operating costs and expenses	$	951.6	$	992.7	$	(41.1)	$	15.5	$	50.2	$	(143.8)	$	37.0

C&W Caribbean. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our C&W Caribbean segment.


	Three months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				FX		Organic
	in millions

Personnel and contract labor	$	53.0	$	52.2	$	0.8	$	0.1	$	0.7
Network-related	30.3		34.2		(3.9)		—		(3.9)
Service-related	18.3		16.6		1.7		—		1.7
Commercial	12.0		10.8		1.2		—		1.2
Facility, provision, franchise and other	38.0		36.2		1.8		0.2		1.6
Share-based compensation expense	4.5		6.1		(1.6)		—		(1.6)
Total other operating costs and expenses	$	156.1	$	156.1	$	—	$	0.3	$	(0.3)


	Six months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				FX		Organic
	in millions

Personnel and contract labor	$	106.1	$	103.6	$	2.5	$	0.2	$	2.3
Network-related	66.0		71.6		(5.6)		0.1		(5.7)
Service-related	37.5		34.0		3.5		0.1		3.4
Commercial	22.2		21.7		0.5		0.1		0.4
Facility, provision, franchise and other	76.3		70.5		5.8		0.2		5.6
Share-based compensation expense	9.4		12.3		(2.9)		—		(2.9)
Total other operating costs and expenses	$	317.5	$	313.7	$	3.8	$	0.7	$	3.1

•Personnel and contract labor: The organic increases are primarily due to the net effect of (i) higher bonus-related expenses, (ii) higher salaries and related personnel costs, (iii) lower headcount and (iv) increases in capitalized labor.

•Network-related: The organic decreases are primarily due to the net effect of (i) lower leased line costs resulting from the renegotiation of pole rental contracts,(ii) higher capacity charges associated with the use of Liberty Networks’ subsea network, (iii) lower truck rolls, and(iv) lower professional service costs due to the decision to transition certain third-party services to internal resources.

•Service-related: The organic increases are primarily due to higher professional services associated with the launch of new customer value propositions.

•Facility, provision, franchise and other: The organic increases are primarily due to the net effect of (i) lower bad debt provisions and (ii) higher travel-related expenses. In addition, the increase for the six-month comparison includes the negative impact of an accrual release during the first quarter of 2022 related to a favorable court ruling associated with an industry levy on franchise fees.

C&W Panama. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our C&W Panama segment.


	Three months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				An acquisition		Organic
	in millions

Personnel and contract labor	$	21.6	$	17.4	$	4.2	$	3.0	$	1.2
Network-related	14.0		10.3		3.7		4.5		(0.8)
Service-related	4.2		3.6		0.6		0.7		(0.1)
Commercial	6.0		4.9		1.1		4.9		(3.8)
Facility, provision, franchise and other	20.9		12.8		8.1		12.0		(3.9)
Share-based compensation expense	1.7		2.1		(0.4)		—		(0.4)
Total other operating costs and expenses	$	68.4	$	51.1	$	17.3	$	25.1	$	(7.8)


	Six months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				An acquisition		Organic
	in millions

Personnel and contract labor	$	43.2	$	36.3	$	6.9	$	6.0	$	0.9
Network-related	26.9		20.2		6.7		9.0		(2.3)
Service-related	8.6		8.2		0.4		1.4		(1.0)
Commercial	14.5		10.8		3.7		9.8		(6.1)
Facility, provision, franchise and other	46.5		23.4		23.1		24.0		(0.9)
Share-based compensation expense	2.3		3.4		(1.1)		—		(1.1)
Total other operating costs and expenses	$	142.0	$	102.3	$	39.7	$	50.2	$	(10.5)

•Network-related: The organic decreases are primarily due to lower maintenance-related costs, mainly driven by the transition to a lower-cost vendor.

•Commercial: The organic decreases are primarily due to (i)lower third-party sales commissions and (ii) lower marketing costs.

•Facility, provision, franchise and other: The organic decreases are primarily due to the net effect of (i) lower bad debt expense, (ii) lower office and facility-related costs, (iii) lower franchise fees, (iv) higher integration-related costs and (v) higher facilities maintenance expense. In addition, the three-month comparison includes a decrease associated with operating lease expense resulting from decommissioned towers.

Liberty Networks. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our Liberty Networks segment.


	Three months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				FX		Organic
	in millions

Personnel and contract labor	$	11.7	$	9.8	$	1.9	$	(0.7)	$	2.6
Network-related	10.7		10.4		0.3		(0.2)		0.5
Service-related	1.3		1.1		0.2		(0.1)		0.3
Commercial	0.8		0.3		0.5		—		0.5
Facility, provision, franchise and other	5.6		5.3		0.3		(0.3)		0.6
Share-based compensation expense	1.5		1.7		(0.2)		—		(0.2)
Total other operating costs and expenses	$	31.6	$	28.6	$	3.0	$	(1.3)	$	4.3


	Six months ended June 30,				Increase (decrease)		Increase (decrease) from:
	2023		2022				FX		Organic
	in millions

Personnel and contract labor	$	22.4	$	22.0	$	0.4	$	(1.7)	$	2.1
Network-related	21.4		22.1		(0.7)		(0.7)		—
Service-related	2.3		2.1		0.2		(0.1)		0.3
Commercial	1.1		0.6		0.5		—		0.5
Facility, provision, franchise and other	12.3		10.2		2.1		(0.9)		3.0
Share-based compensation expense	2.2		2.7		(0.5)		—		(0.5)
Total other operating costs and expenses	$	61.7	$	59.7	$	2.0	$	(3.4)	$	5.4

•Personnel and contract labor: The organic increases are primarily due to higher bonus and salary-related expenses.

•Facility, provision, franchise and other: The organic increases are primarily due to bad debt provisions and other insignificant changes across numerous cost categories.

Liberty Puerto Rico. The following tables set forth the changes in other operating costs and expenses for our Liberty Puerto Rico segment.


	Three months ended June 30,
					Increase (decrease)
	2023		2022
	in millions

Personnel and contract labor	$	33.1	$	38.3	$	(5.2)
Network-related	13.4		10.7		2.7
Service-related	20.4		13.8		6.6
Commercial	11.4		12.2		(0.8)
Facility, provision, franchise and other	48.3		38.7		9.6
Share-based compensation expense	1.7		1.6		0.1
Total other operating costs and expenses	$	128.3	$	115.3	$	13.0


	Six months ended June 30,
					Increase (decrease)
	2023		2022
	in millions

Personnel and contract labor	$	74.3	$	78.9	$	(4.6)
Network-related	25.6		21.6		4.0
Service-related	35.3		25.3		10.0
Commercial	22.9		24.3		(1.4)
Facility, provision, franchise and other	97.5		82.3		15.2
Share-based compensation expense	3.5		4.8		(1.3)
Total other operating costs and expenses	$	259.1	$	237.2	$	21.9

•Personnel and contract labor: The decreases are primarily due to the receipt of a payroll tax credit during the first and second quarters of 2023 awarded to businesses that continued to pay employees or that experienced significant declines in gross receipts during the COVID-19 pandemic. The decrease for the six-month comparison is partially offset by higher salaries and related personnel costs, including the impact of higher amortization of deferred commissions in connection with the AT&T Acquisition.

•Network-related: The increases are primarily due to higher maintenance costs and fees related to the migration of customers to our mobile network. In addition, the increase for the six-month comparison includes highernetwork-related integration costs associated with the AT&T Acquisition and network outages.

•Service-related: The increases are primarily due to higher (i) professional services charges, (ii) service-related integration costs associated with the AT&T Acquisition and (iii) regulatory fees.

•Facility, provision, franchise and other: The increases are primarily due to the net effect of (i) higher (a) bad debt expense, primarily resulting from lower expected credit loss rates established during the second quarter of 2022, (b) bank-related fees associated with certain services being provided under a transition service agreement and (c) utility costs, and (ii) decreases due to business interruption insurance claim benefits recognized during the second quarter of 2023 related to the power outages experienced during the second quarter of 2022.

Liberty Costa Rica. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our Liberty Costa Rica segment.


	Three months ended June 30,				Increase (decrease)		Increase (decrease) from:

	2023		2022				FX		Organic
	in millions

Personnel and contract labor	$	8.9	$	6.4	$	2.5	$	1.7	$	0.8
Network-related	10.0		8.1		1.9		1.8		0.1
Service-related	5.9		6.0		(0.1)		1.3		(1.4)
Commercial	14.4		13.0		1.4		2.8		(1.4)
Facility, provision, franchise and other	17.8		11.3		6.5		3.4		3.1
Share-based compensation expense	0.3		0.5		(0.2)		0.1		(0.3)
Total other operating costs and expenses	$	57.3	$	45.3	$	12.0	$	11.1	$	0.9


	Six months ended June 30,				Increase (decrease)		Increase (decrease) from:

	2023		2022				FX		Organic
	in millions

Personnel and contract labor	$	17.4	$	13.8	$	3.6	$	2.8	$	0.8
Network-related	19.9		16.8		3.1		3.0		0.1
Service-related	12.0		11.4		0.6		2.0		(1.4)
Commercial	28.4		26.7		1.7		4.6		(2.9)
Facility, provision, franchise and other	35.3		27.9		7.4		5.7		1.7
Share-based compensation expense	0.5		1.4		(0.9)		0.1		(1.0)
Total other operating costs and expenses	$	113.5	$	98.0	$	15.5	$	18.2	$	(2.7)

•Service-related: The organic decreases are primarily due to professional services incurred during 2022 related to a software implementation.

•Commercial: The organic decreases are primarily due to integration costs incurred during 2022 related to rebranding associated with the Liberty Telecomunicaciones Acquisition.

•Facility, provision, franchise and other: The organic increases are primarily due to the negative impact of purchase accounting adjustments associated with the Liberty Telecomunicaciones Acquisition that decreased rent expense during the second quarter of 2022.

Corporate. The following tables set forth the changes in other operating costs and expenses for our corporate operations.


	Three months ended June 30,				Increase (decrease)
	2023		2022
	in millions

Personnel and contract labor	$	11.8	$	7.4	$	4.4
Service-related	8.1		4.7		3.4
Facility, provision, franchise and other	9.3		6.2		3.1
Share-based compensation expense	14.8		15.4		(0.6)
Total other operating costs and expenses	$	44.0	$	33.7	$	10.3


	Six months ended June 30,				Increase
	2023		2022
	in millions

Personnel and contract labor	$	23.9	$	16.5	$	7.4

Service-related	13.2		8.3		4.9
Facility, provision, franchise and other	18.9		12.9		6.0
Share-based compensation expense	35.8		29.8		6.0
Total other operating costs and expenses	$	91.8	$	67.5	$	24.3

•Personnel and contract labor: The increases are primarily attributable to (i) higher bonus costs due to a shift in bonus payments in the form of equity to cash and (ii) higher salaries and related personnel costs, mainly resulting from higher staffing levels in our operations center in Panama.

•Service-related: The increases are primarily due to increases in professional services costs.

•Facility, provision, franchise and other: The increases are primarily due to insurance costs related to (i) claims associated with cable breaks that occurred during the first half of 2023, and (ii) business interruption claims submitted by our Liberty Puerto Rico business during 2022.

Results of Operations (below Adjusted OIBDA)

Depreciation and amortization

Our depreciation and amortization expense increased $3$27 million or ~~5.2%. This increase includes the following factors:~~

~~An increase in programming~~13% and ~~copyright costs of $1~~$48 million or ~~3.5%,~~11% during the three and six months ended June 30, 2023, respectively, as compared to the corresponding periods in 2022, primarily due to the net effect of (i) an increase in certain premium and basic content costs due to rate increases, (ii) a decrease in the foreign currency impact of programming contracts denominated in U.S. dollars and (ii) higher costs associated with video-on-demand;

An increase in mobile access and interconnect costs of $1 million or 8.2%, primarily due to (i) higher MVNO charges and (ii) a net increase in interconnect costs from higher call volumes and lower interconnect rates.

~~Liberty Puerto Rico.~~ The decrease in Liberty Puerto Rico’s programming and other direct costs of services is primarily due to a decline in programming and copyright costs of $10 million or 42.7% mostly attributable to (i) $7 million of credits from vendors stemming from Hurricanes Irma and Maria and (ii) lower costs of $4 million resulting from disconnects of enhanced video subscribers due to the impact of the hurricanes.

~~Other Operating Expenses~~

~~General.~~ ~~Other operating expenses include network operations, customer operations, customer care, share-based compensation and other costs related to our operations.~~

~~The following table sets forth other operating expenses by reportable segment:~~

Three months ended March 31, Increase (decrease)
2018 2017 $ %
in millions, except percentages

C&W $ 109.0
$ 117.8
$ (8.8 ) (7.5 )
VTR 42.9
36.9
6.0
16.3
Liberty Puerto Rico 14.6
15.4
(0.8 ) (5.2 )
Intersegment eliminations (0.1 ) (0.1 ) —
N.M.
Total other operating expenses excluding share-based compensation expense 166.4
170.0
(3.6 ) (2.1 )
Share-based compensation expense 0.1
0.5
(0.4 ) (80.0 )
Total $ 166.5
$ 170.5
$ (4.0 ) (2.3 )

~~N.M. — Not Meaningful.~~

~~Consolidated~~. The decrease in other operating expenses during the three months ended March 31, 2018, as compared to the corresponding period in 2017, includes increases of $3 million and $4 million attributable to the impact of the C&W Carve-out Acquisition and FX, respectively. Our other operating expenses include share-based compensation expense. For additional information, see the discussion under ~~Share-based compensation expense (included in other operating and SG&A expenses)~~ below. Excluding the effects of the C&W Carve-out Acquisition, FX and share-based compensation expense, our other operating expenses decreased $10 million or 5.8%. The organic decrease includes declines of $12 million and $1 million at C&W and Liberty Puerto Rico, respectively, and an increase of $3 million at VTR, as further discussed below.

~~C&W.~~ The decrease in C&W’s other operating expenses includes an increase of $3 million attributable to the impact of the C&W Carve-out Acquisition. Excluding the effect of the C&W Carve-out Acquisition, C&W’s other operating expenses (exclusive of share-based compensation expense) decreased $12 million or 9.8%. This decrease includes the following factors:

A decrease in bad debt and collection expenses of $7 million or 50.5%, primarily due to (i) better than expected collections in 2018, including a $3 million recovery related to provisions established following the impacts of Hurricanes Irma and Maria, and (ii) a decrease resulting from provisions recorded during the first quarter of 2017 in connection with Hurricane Matthew; and


•	~~A decrease in network-related expenses of$6 million or 14.0%, primarily due to network restoration costs incurred in the first quarter of 2017 associated with sustained damages from Hurricane Matthew.~~

~~VTR.~~ The increase in VTR’s other operating expenses includes an increase of $4 million due to FX. Excluding the effect of FX, VTR’s other operating expenses (exclusive of share-based compensation expenses) increased $3 million or 6.8%. This change is primarily the result of an increase in network-related expenses of $3 million or 21.1% due to higher maintenance costs.

~~Liberty Puerto Rico.~~ The decrease in Liberty Puerto Rico’s other operating expenses is primarily due to lower various indirect expenses of approximately $2 million, predominantly related to bad debt and franchise fees that decreased as a result of the hurricanes. This decrease was partially offset by higher personnel costs of $1 million resulting from hurricane recovery efforts.

~~SG&A Expenses~~

~~General.~~ ~~SG&A expenses include human resources, information technology, general services, management, finance, legal, external sales and marketing costs, share-based compensation and other general expenses.~~

~~The following table sets forth SG&A by reportable segment and our corporatecategory:~~

Three months ended March 31, Increase
2018 2017 $ %
in millions, except percentages

C&W $ 117.2
$ 114.5
$ 2.7
2.4
VTR 45.4
39.2
6.2
15.8
Liberty Puerto Rico 12.7
12.4
0.3
2.4
Corporate 11.3
5.1
6.2
121.6
Intersegment eliminations 0.3
0.1
0.2
N.M.
Total SG&A expenses excluding share-based compensation expense 186.9
171.3
15.6
9.1
Share-based compensation expense 6.4
5.1
1.3
25.5
Total $ 193.3
$ 176.4
$ 16.9
9.6

~~N.M. — Not Meaningful.~~

~~Consolidated~~. The increase in SG&A expenses during the three months ended March 31, 2018, as compared to the corresponding period in 2017, includes increases of $1 million and $4 million attributable to the impacts of the C&W Carve-out Acquisition and FX, respectively. Our SG&A expenses include share-based compensation expense. For additional information, see the discussion under ~~Share-based compensation expense (included in other operating and SG&A expenses)~~ ~~below. Excluding the effects of the C&W Carve-out Acquisition, FX and share-based compensation expense, our SG&A expenses increased $11~~

~~million or 6.2%. The organic increase primarily includes increases of $6 million, $3 million and $1 million at Corporate, VTR and C&W, respectively, as further discussed below.~~

~~C&W.~~ ~~The increase~~in C&W’s SG&A expenses includes an increase of $1 million attributable to the impact of the C&W Carve-out Acquisition. Excluding the effect of the C&W Carve-out Acquisition, C&W’s SG&A expenses (exclusive of share-based compensation expense) increased $1 million or 1.2%. This increase includes the following factors:

~~A decrease in outsourced labor and professional fees of $3 million or 28.6%, primarily due to higher contract costs in 2017;~~

~~An increase in personnel costs of $3 million or 5.0%, primarily due to higher incentive compensation costs; and~~

~~A net increase resulting from other individually insignificant changes in other SG&A expense categories.~~

~~VTR.~~ The increase in VTR’s SG&A expenses includes an increase of $4 million due to FX. Excluding the effect of FX, VTR’s SG&A expenses (exclusive of share-based compensation expense) increased $3 million or 6.4%. This change is primarily the result of an increase in sales, marketing and advertising expenses of $3 million or 19.3%, due to higher (i) sales commissions to third-party dealers and (ii) costs associated with advertising campaigns.

~~Liberty Puerto Rico.~~ Liberty Puerto Rico’s SG&A expenses (exclusive of share-based compensation expense) remained relatively unchanged during the three months ended March 31, 2018, as compared to the corresponding period in 2017.

~~Corporate~~. The increase is primarily attributable to added costs associated with being a separate public company, including increases in personnel costs and professional services. The increase in costs is inclusive of costs that Liberty Global charges us in connection with certain of the Split-Off Agreements, as further described in note 11 to our condensed consolidated financial statements.

~~Adjusted OIBDA~~

Adjusted OIBDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance. For the definition of this performance measure and for a reconciliation of total Adjusted OIBDA to our earnings (loss) before income taxes, see note 16 to our condensed consolidated financial statements.

~~The following table sets forth Adjusted OIBDA by reportable segment and our corporatecategory:~~

Three months ended March 31, Increase (decrease)
2018 2017 $ %
in millions, except percentages

C&W $ 229.1
$ 209.9
$ 19.2
9.1
VTR 105.0
91.6
13.4
14.6
Liberty Puerto Rico 18.0
51.3
(33.3 ) (64.9 )
Corporate (11.3 ) (5.1 ) (6.2 ) 121.6
Total $ 340.8
$ 347.7
$ (6.9 ) (2.0 )

~~Adjusted OIBDA Margin~~

~~The following table sets forth the Adjusted OIBDA margins (Adjusted OIBDA divided by revenue) of each of our reportable segments:~~

Three months ended March 31,
2018 2017
%

C&W 39.1 36.5
VTR 39.8 39.9
Liberty Puerto Rico 29.1 48.1

Adjusted OIBDA margin is impacted by organic changes in revenue, programming and other direct costs of services, other operating expenses and SG&A expenses as further discussed above. During the three months ended March 31, 2018, the Adjusted OIBDA of Liberty Puerto Rico was adversely impacted by Hurricanes Irma and Maria, as more fully described in ~~Overview~~ above. With regards to Puerto Rico, Adjusted OIBDA margin during the first quarter of 2018 improved significantly from (71.6)% during the three months ended December 31, 2017 as we recover from Hurricanes Maria and Irma.

~~Share-based compensation expense (included in other operating and SG&A expenses)~~

~~We recognized share-based compensation expense of $7 million and $6 million during the three months ended March 31, 2018 and 2017, respectively.This increase is primarily due to equity awards granted during 2018.~~

~~For additional information regarding our share-based compensation, see note 13 to our condensed consolidated financial statements.~~

~~Depreciation and amortization expense~~

Our depreciation and amortization expense increased $8 million or 4.3% during the three months ended March 31, 2018, as compared to the corresponding period in 2017. Excluding the effect of FX, depreciation and amortization expense increased $6 million or 3.0% during the three months ended March 31, 2018, as compared to the corresponding period in 2017. This increase is primarily due to the net effect of (i) an increase associated with property and equipment additions, primarily associated with baseline related toadditions, the installation of ~~customer premises equipment,~~CPE and the expansion and upgrade of our networks and other capital initiatives, ~~and~~(ii) a decrease associated with ~~certain~~customer relationship assets becoming fully depreciated ~~primarily at VTR and~~in Liberty Puerto ~~Rico.~~Rico and (iii) an increase at C&W Panama resulting from the Claro Panama Acquisition.

Impairment, restructuring and other operating items, net

~~We recognized~~The details of our impairment, restructuring and other operating items, net, are as follows:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Impairment charges (a)	$	26.4	$	556.6	$	47.6	$	558.5
Restructuring charges (b)	14.4		2.9		27.5		5.6
Other operating items, net (c)	—		9.1		(4.6)		12.3
Total	$	40.8	$	568.6	$	70.5	$	576.4

(a)The 2023 amounts primarily relate to the impairment of ~~$34 million and $13 million during~~certain operating lease right-of-use assets, predominantly related to decommissioned tower leases at C&W Panama. The 2022 amounts primarily consist of goodwill impairment charges associated with certain reporting units within the ~~three months ended March 31, 2018 and 2017, respectively. During 2018, we incurred $26 million of restructuring charges, which~~C&W Caribbean segment.

(b)The 2023 amounts include ~~$24 million of~~ employee severance and termination costs related to ~~certain~~ reorganization activities, primarily at (i) C~~&W. During 2017, we incurred $11 million of restructuring charges, which~~&W Caribbean (ii) C&W Panama and (iii) Liberty Costa Rica.

(c)The 2023 amount primarily relates to gains on asset dispositions. The 2022 amounts primarily include ~~$9 million of employee severance and termination costs related to certain reorganization activities, primarily at C&W.~~direct acquisition costs.

~~For additional information regarding our restructuring charges, see note 12 to our condensed consolidated financial statements.~~

Interest expense

Our interest expense increased $8$12 million and $29 million during ~~2018,~~the three and six months ended June 30, 2023, respectively, as compared to ~~2017. This increase is~~the corresponding periods in 2022. The increases are primarily attributable to the net effect of (i) ~~an increase~~higher weighted-average interest rates and (ii) lower average outstanding debt balances, primarily resulting from the ~~adoption~~disposition of ~~ASU 2014-09, as further described~~the Chile JV Entities in ~~notes 2 and 3 to our condensed consolidated financial statements, and (ii) a net decrease of accretion expense associated with premiums and discounts.~~October 2022.

For additional information regarding our outstanding indebtedness, see note 8 to our condensed consolidated financial statements.

It is possible that the interest rates on (i) any new borrowings could be higher than the current interest rates on our existing indebtedness and (ii) our variable-rate indebtedness could increase in future periods. As further discussed in note 5 to our condensed consolidated financial statements, we use derivative instruments to manage our interest rate risks.

Realized and unrealized gains or losses on derivative instruments, net

Our realized and unrealized gains or losses on derivative instruments primarily include (i) unrealized changes in the fair values of our derivative instruments that are non-cash in nature until such time as the derivative contracts are fully or partially settled and (ii) realized gains or losses upon the full or partial settlement of the derivative contracts. The details of our realized and unrealized ~~losses~~gains on derivative instruments, net, are as follows:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Interest rate and cross-currency derivative contracts (a)	$	75.2	$	276.1	$	39.7	$	258.5
Foreign currency forward contracts and other	(3.1)		15.0		(18.9)		6.7
Weather Derivatives (b)	(7.7)		(7.8)		(15.5)		(15.6)
Total	$	64.4	$	283.3	$	5.3	$	249.6

Three months ended March 31,
2018 2017
in millions

Cross-currency and interest rate derivative contracts (a) $ (38.9 ) $ (25.5 )
Foreign currency forward contracts (2.6 ) (1.8 )
Total $ (41.5 ) $ (27.3 )

(a)The gains during the three and six months ended June 30, 2023 and 2022 are primarily attributable to the net effect of (i) changes in interest rates and (ii) for the 2022 periods, changes in FX rates predominantly due to changes in the value of the CLP relative to the U.S. dollar prior to the disposition of the Chile JV Entities.

~~(a)~~

The loss during 2018 is attributable to the net effect of (i) losses from changes in FX rates, primarily resulting from an increase in the value of the Chilean peso relative to the U.S. dollar, and (ii) gains resulting from changes in interest rates. In addition, the loss during 2018 includes a net loss of $12 million resulting from changes in our credit risk valuation adjustments. The loss during 2017 is primarily attributable to the net effect of (i) gains resulting from changes in interest rates and (ii) losses from changes in FX rates, primarily resulting from an increase in the value of the Chilean peso relative to the U.S. dollar. In addition, the loss during 2017 includes a net gain of $7 million resulting from changes in our credit risk valuation adjustments.

(b)Amounts represent the amortization of premiums associated with our Weather Derivatives.

For additional information concerning our derivative instruments, see notes 5 and 6 to our condensed consolidated financial statements and Item 3. ~~Qualitative~~Quantitative and ~~Quantitative~~Qualitative Disclosures about Market Risk below.

Foreign currency transaction gains or losses, net

Our foreign currency transaction gains or losses primarily result from the remeasurement of monetary assets and liabilities that are denominated in currencies other than the underlying functional currency of the applicable entity. Unrealized foreign currency transaction gains or losses are computed based on period-end exchange rates and are non-cash in nature until such time as the amounts are settled. The details of our foreign currency transaction gains (losses), net, are as follows:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

U.S. dollar-denominated debt issued by non-U.S. dollar functional currency entities (a)	$	(3.3)	$	(246.3)	$	32.7	$	(139.1)
Intercompany payables and receivables denominated in a currency other than the entity’s functional currency	(4.4)		2.6		6.2		10.7
Other (b)	1.0		(18.3)		3.6		(37.0)
Total	$	(6.7)	$	(262.0)	$	42.5	$	(165.4)

Three months ended March 31,
2018 2017
in millions

U.S. dollar-denominated debt issued by a Chilean peso functional currency entity $ 26.8
$ 20.5
British pound sterling-denominated debt issued by a U.S. dollar functional currency entity (10.5 ) (3.7 )
Other (0.4 ) (2.3 )
Total $ 15.9
$ 14.5

~~Loss on debt modification and extinguishment~~

~~We recognized a loss on debt modification and extinguishment of $13 million and nil~~(a) The changes during the three and six months ended ~~March 31, 2018~~June 30, 2023 are primarily related to a CRC functional currency entity. The losses during the three and ~~2017, respectively. The 2018 amount represents~~six months ended June 30, 2022 are primarily related to a CLP functional currency entity.

(b) Primarily includes (i) third-party receivables and payables denominated in a currency other than an entity’s functional currency and (ii) cash denominated in a currency other than an entity’s functional currency.

Gains or losses on debt extinguishment, net

Our gains or losses on debt extinguishment generally include (i) premiums or discounts associated with redemptions and/or repurchases of debt, (ii) the write-off of unamortized ~~discounts and~~ deferred financing costs, premiums and/or discounts and/or (iii) breakage fees.

We recognized gains (losses) on debt extinguishment, net, of nil and ($4 million) during the three and six months ended June 30, 2023, respectively, and nil during each of the three and six months ended June 30, 2022. The net loss during the six months ended June 30, 2023 is primarily associated with ~~the repayment of the C&W Term Loan B-3 Facility.~~refinancing activity at Liberty Costa Rica.

For additional information concerning our ~~loss on~~ debt ~~modification~~repurchases and ~~extinguishment,~~repayments, see note 8 to our condensed consolidated financial statements.

~~Other income, net~~Income tax benefit or expense

We recognized ~~other~~ income ~~net of $5~~tax expense $31 million and $6$40 million during the three months ended ~~March 31, 2018~~June 30, 2023 and ~~2017, respectively. The amount for each period includes $3 million of interest~~2022, respectively, and ~~dividend income and $3 million in pension-related credits following the adoption of ASU 2017-07.~~

~~For additional information regarding the adoption of ASU 2017-07, see note 2 to our condensed consolidated financial statements.~~

~~Income tax expense~~

~~We recognized income tax expense of $17~~$44 million and ~~$23~~$63 million during the ~~three~~six months ended ~~March 31, 2018~~June 30, 2023 and ~~2017,~~2022, respectively.

For the three and six months ended June 30, 2022, the income tax expense attributable to our earnings before income taxes differs from the ~~amount~~amounts computed using the statutory tax rate, primarily due to the detrimental effects of ~~international rate~~non-deductible goodwill impairment, negative effects of permanent tax differences, such as non-deductible expenses and ~~changes in valuation allowances,~~inclusion of withholding taxes on cross-border payments. These negative impacts to our effective tax rate were partially offset by the beneficial effects of ~~enacted~~international rate differences, permanent tax ~~law~~differences, such as non-taxable income, and ~~rate changes.~~net decreases in valuation allowances.

For additional information regarding our income taxes, see note 913 to our condensed consolidated financial statements.

Net earnings ~~(loss)~~or loss

~~During the three months ended March 31, 2018 and 2017, we reported~~The following table sets forth selected summary financial information of our net earnings (loss) of ($54 million) and $11 million, respectively, including (i) operating income of $98 million and $135 million, respectively, (ii) net non-operating expenses of $136 million and $101 million, respectively, and (iii) income tax~~expense of $17 million and $23 million, respectively.~~:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	in millions

Operating income (loss)	$	139.5	$	(352.9)	$	252.5	$	(168.3)
Net non-operating expenses	$	(89.7)	$	(116.0)	$	(252.5)	$	(187.6)
Income tax expense	$	(30.6)	$	(39.7)	$	(43.8)	$	(62.5)
Net earnings (loss)	$	19.2	$	(508.6)	$	(43.8)	$	(418.4)

Gains or losses associated with (i) changes in the fair values of derivative instruments and (ii) movements in foreign currency exchange rates are subject to a high degree of volatility and, as such, any gains from these sources do not represent a reliable source of income. In the absence of significant gains in the future from these sources or from other non-operating items, our ability to achieve earnings is largely dependent on our ability to increase our aggregate Adjusted OIBDA to a level that more than offsets the aggregate amount of our (i) share-based compensation expense, (ii) depreciation and amortization, (iii) impairment, restructuring and other operating items, (iv) interest expense, (v) other non-operating expenses and (vi) income tax expenses.

Due largely to the fact that we seek to maintain our debt at levels that provide for attractive equity returns, as discussed under Material Changes in Financial Condition—Capitalization below, we expect that we will continue to report significant levels of interest expense for the foreseeable future. ~~For information concerning our expectations with respect to trends that may affect certain aspects of our operating results in future periods, see the discussion under~~ ~~Overview~~ ~~above.~~

~~Net earnings (loss) attributable to noncontrolling interests~~

~~During the three months ended March 31, 2018 and 2017, we reported net earnings (loss) attributable to noncontrolling interests of ($10 million) and $16 million, respectively.~~The 2018 period primarily includes losses attributable to our noncontrolling interests in certain C&W entities, as compared to the 2017 period, which primarily comprises earnings attributable to noncontrolling interests in certain C&W entities.

~~During the first quarter of 2018, we increased our ownership in C&W Jamaica from 82.0% to 91.7%. For additional information, see note 10 to our condensed consolidated financial statements.~~

Material Changes in Financial Condition

Sources and Uses of Cash

~~Each~~As of ~~our reportable segments is separately financed within one of our~~June 30, 2023, we have three primary “borrowing ~~groups.~~groups,” ~~These borrowing groups~~which include the respective restricted parent and subsidiary entities ~~within~~of C&W, ~~VTR Finance~~Liberty Puerto Rico and Liberty ~~Puerto Rico.~~Costa Rica. Our borrowing groups, which typically generate cash from operating activities, ~~accounted for~~held a significant portion of our consolidated cash and cash equivalents at ~~March 31, 2018.~~June 30, 2023. Our ability to access the liquidity of these and other subsidiaries may be limited by tax and legal considerations, the presence of noncontrolling interests, foreign currency exchange restrictions with respect to certain C&W subsidiaries and other factors. For details of the restrictions on our subsidiaries to make payments to us through dividends, loans or other distributions see note 8 to our condensed consolidated financial statements.

Cash and cash equivalents

The details of the U.S. dollar equivalent balances of our cash and cash equivalents at ~~March 31, 2018~~June 30, 2023 are set forth in the following table (in millions):

Cash and cash equivalents held by:
Liberty Latin America and unrestricted subsidiaries:
Liberty Latin America (a) $ 70.6
Unrestricted subsidiaries (b) 38.9
Total Liberty Latin America and unrestricted subsidiaries 109.5
Borrowing groups (c):
C&W (d) 291.6
VTR Finance 69.0
Liberty Puerto Rico 40.5
Total borrowing groups 401.1
Total cash and cash equivalents $ 510.6


~~(a)~~Cash and cash equivalents held by:			~~Represents the amount held by~~
Liberty Latin America ~~on a standalone basis.~~

and unrestricted subsidiaries:
~~(b)~~			~~Represents the aggregate amount held by subsidiaries of~~ Liberty Latin America ~~that are outside of our borrowing groups.~~(a)	$	~~All of these companies rely on funds provided by our borrowing groups to satisfy their liquidity needs.~~28.4


~~(c)~~Unrestricted subsidiaries (b)			~~Represents the aggregate amounts held by the parent entity of the applicable borrowing group and their restricted subsidiaries.~~

81.5
~~(d)~~Total Liberty Latin America and unrestricted subsidiaries	~~C&W’s subsidiaries hold the majority of C&W’s consolidated cash. Due to the restrictions as noted above, a significant portion of the cash held by~~ 109.9
Borrowing groups (c):
C&W ~~subsidiaries is not considered to be an immediate source of corporate liquidity for C&W.~~(d)	474.6
Liberty Puerto Rico	13.5
Liberty Costa Rica	34.9
Total borrowing groups	523.0
Total cash and cash equivalents	$	632.9

(a)Represents the amount held by Liberty Latin America on a standalone basis.

(b)Represents the aggregate amount held by subsidiaries of Liberty Latin America that are outside of our borrowing groups.All of these companies rely on funds provided by our borrowing groups to satisfy their liquidity needs.

(c)Represents the aggregate amounts held by the parent entity of the applicable borrowing group and their restricted subsidiaries.

(d)Includes $23 million and $35 million of cash held by operations in C&W Panama and C&W Bahamas, respectively.

Liquidity and capital resources of Liberty Latin America and its unrestricted subsidiaries

Our current sources of corporate liquidity include (i) cash and cash equivalents held by Liberty Latin America and, subject to certain tax and legal considerations, Liberty Latin America’s unrestricted subsidiaries, and (ii) interest and dividend income received on our and, subject to certain tax and legal considerations, our unrestricted subsidiaries’ cash and cash equivalents and investments. From time to time, Liberty Latin America and its unrestricted subsidiaries may also receive (i) proceeds in the form of distributions or loan repayments from Liberty Latin America’s borrowing groups ~~or affiliates,~~ upon (a) the completion of recapitalizations, refinancings, asset sales or similar transactions by these entities or (b) the accumulation of excess cash from operations or other means, (ii) proceeds upon the disposition of investments and other assets of Liberty Latin America and its unrestricted subsidiaries and (iii) proceeds in connection with the incurrence of debt by Liberty Latin America or its unrestricted subsidiaries or the issuance of equity securities by Liberty Latin America. No assurance can be given that any external funding would be available to Liberty Latin America or its unrestricted subsidiaries on favorable terms, or at all. As noted above, various factors may limit our ability to access the cash of our borrowing groups.

Our corporate liquidity requirements include (i) corporate general and administrative expenses and (ii) other liquidity needs that may arise from time to time. In addition, Liberty Latin America and its unrestricted subsidiaries may require cash in connection with (i) the repayment of third-party and intercompany debt, (ii) the satisfaction of contingent liabilities, (iii) acquisitions and other investment opportunities, (iv) the repurchase of debt securities, (v) tax payments or (vi) any funding requirements of our consolidated ~~subsidiaries, including~~subsidiaries.

During the six months ended June 30, 2023, the aggregate value of our ~~commitment~~share repurchases was $82 million. For additional information regarding our Share Repurchase Program, see note 15 to ~~fund~~ our ~~portion~~condensed consolidated financial statements and Part II—Item 2 Unregistered Sales of ~~any potential liquidity shortfalls~~Equity Securities and Use of ~~Liberty Puerto Rico through December 31, 2018, as further described~~Proceeds below.

Liquidity and capital resources of borrowing groups

The cash and cash equivalents of our borrowing groups are detailed in the table above. In addition to cash and cash equivalents, the primary sources of liquidity of our borrowing groups are cash provided by operations and borrowing availability under their respective debt ~~instruments and, with respect to Liberty Puerto Rico, the remaining portion of the LCPR Equity Commitment (as described below) and insurance proceeds.~~instruments. For the details of the borrowing availability of ~~such subsidiaries~~our borrowing groups at ~~March 31, 2018,~~June 30, 2023, see note 8to our condensed consolidated financial statements. The aforementioned sources of liquidity may be supplemented in certain cases by contributions and/or loans from Liberty Latin America and its unrestricted subsidiaries. The liquidity of our borrowing groups generally is used to fund ~~property and equipment additions,~~capital expenditures, debt service requirements and income tax payments. From time to time, our borrowing groups may also require liquidity in connection with (i) acquisitions and other investment opportunities, (ii) loans to Liberty Latin America, (iii) capital distributions to Liberty Latin America and other equity owners or (iv) the satisfaction of contingent liabilities. No assurance can be given that any external funding would be available to our borrowing groups on favorable terms, or at all. ~~For information regarding our borrowing groups’ commitments and contingencies, see note 15 to our condensed consolidated financial statements.~~

On December 20, 2017, in connection with challenging circumstances that Liberty Puerto Rico continues to experience as a result of the damage caused by Hurricanes Irma and Maria, the LPR Credit Agreements were amended to (i) provide Liberty Puerto Rico with relief from complying with leverage covenants through December 31, 2018, (ii) increase the consolidated first lien net leverage ratio covenant from 4.5:1 to 5.0:1 beginning with the March 31, 2019 quarterly test date, (iii) restrict Liberty Puerto Rico’s ability to make certain types of payments to its shareholders through December 31, 2018 and (iv) include an equity commitment of up to $60 million from Liberty Puerto Rico’s shareholders through December 31, 2018 to fund any potential liquidity shortfalls. Based on our 60% ownership in Liberty Puerto Rico, we are obligated for up to $36 million of the LCPR Equity Commitment. During the first quarter of 2018, a $25 million capital contribution was provided to Liberty Puerto Rico consisting of $15 million from us and $10 million from Searchlight. Subsequent to March 31, 2018, an additional $20 million was contributed to Liberty Puerto Rico, consisting of $12 million from us and $8 million from Searchlight. Accordingly, Liberty Puerto Rico has up to an additional $15 million available under the LCPR Equity Commitment, of which we are obligated for up to $9 million.

~~Hurricanes Irma and Maria are expected to continue to have an adverse impact on Liberty Puerto Rico’s cash flows and liquidity. For additional information, see the discussion under~~ ~~Overview~~ ~~above.~~

For additional information regarding our cash flows, see the discussion under Condensed Consolidated Statements of Cash Flows below.

Capitalization

We seek to maintain our debt at levels that provide for attractive equity returns without assuming undue risk. In this regard, we generally seek to cause our operating subsidiaries to maintain their debt at levels that result in a debt balance (measured using subsidiary debt figures at swapped foreign currency exchange rates, consistent with the covenant calculation requirements of our subsidiary debt agreements) that is typically between four and five times our consolidated Adjusted OIBDA, although the timing of our acquisitions and financing transactions and the interplay of foreign currency average and spot rates may impact this ratio. The ratio of our March 31, 2018 consolidated debt to our annualized consolidated Adjusted OIBDA for the quarter ended March 31, 2018 was 4.8x. In addition, the ratio of our March 31, 2018 consolidated net debt (debt, as defined above, less cash and cash equivalents) to our annualized consolidated Adjusted OIBDA for the quarter ended March 31, 2018 was4.5x. Beginning in the fourth quarter of 2017, these ratios increased due to the adverse impacts of the hurricanes on our Adjusted OIBDA. However, assuming our debt levels remain relatively consistent, we expect these ratios to decrease in future periods as we continue to recover from the adverse impacts of the hurricanes.

When it is cost effective, we generally seek to match the denomination of the borrowings of our subsidiaries with the functional currency of the operations that support the respective borrowings. As further discussed under Item 3. Quantitative and Qualitative Disclosures about Market Risk and in note 5 to our condensed consolidated financial statements, we also use derivative instruments to mitigate foreign currency and interest rate risks associated with our debt instruments.

Our ability to service or refinance our debt and, where applicable, to maintain compliance with the leverage covenants in the credit agreements ~~and indentures~~ of our borrowing groups is dependent primarily on our ability to maintain ~~or increase~~ covenant EBITDA of our operating subsidiaries, as specified by our subsidiaries’ debt agreements (Covenant EBITDA), and to achieve adequate returns on our property and equipment additions and acquisitions. In addition, our ability to obtain additional debt financing is limited

by incurrence-based and/or maintenance-based leverage covenants contained in the various debt instruments of our borrowing groups. For example, if the Covenant EBITDA of ~~C&W~~one of our borrowing groups were to decline, our ability to support or obtain additional debt in that borrowing group could be limited. No assurance can be given that we would have sufficient sources of liquidity, or that any external funding would be available on favorable terms, or at all, to fund any such required repayment. At ~~March 31, 2018,~~June 30, 2023, each of our borrowing groups was in compliance with its debt covenants. We do not anticipate any instances of non-compliance with respect to the debt covenants of our borrowing groups that would have a material adverse impact on our liquidity during the next 12 months.

At ~~March 31, 2018,~~June 30, 2023, the outstanding principal amount of our debt, together with our ~~capital~~finance lease obligations, aggregated ~~$6,440~~$8,042 million, including ~~$212~~$316 million that is classified as current in our condensed consolidated balance sheet and ~~$5,803~~$7,362 million that is not due until ~~2022~~2027 or thereafter. ~~All~~At June 30, 2023, $7,738 million of our debt and ~~capital~~finance lease obligations have been borrowed or incurred by our ~~subsidiaries~~subsidiaries. Included in the outstanding principal amount of our debt at ~~March 31, 2018.~~June 30, 2023 is $294 million of vendor financing, which we use to finance certain of our operating expenses and property and equipment additions. These obligations are generally due within one year, other than for certain licensing arrangements that generally are due over the term of the related license. For additional information concerning our debt, ~~and capital lease obligations,~~ including our debt maturities, see note 8 to our condensed consolidated financial statements.

~~Notwithstanding~~The weighted average interest rate in effect at June 30, 2023 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin, was 6.9%. The interest rate is based on stated rates and does not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our ~~negative working capital position~~overall cost of borrowing. The weighted average impact of the derivative instruments on our borrowing costs at June 30, 2023 was as follows:


Borrowing group	Decrease to borrowing costs

C&W	(1.6)	%
Liberty Puerto Rico	(0.7)	%
Liberty Costa Rica	—	%
Liberty Latin America borrowing groups	(1.2)	%

Including the effects of derivative instruments, original issue premiums or discounts, including the discount on the Convertible Notes associated with the instrument’s conversion option, and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 5.9% at June 30, 2023.

~~March 31, 2018, w~~We believe that we have sufficient resources to repay or refinance the current portion of our debt and ~~capital~~finance lease obligations and to fund our foreseeable liquidity requirements during the next 12 months. However, as our debt maturities grow in later years, we anticipate that we will seek to refinance or otherwise extend our debt maturities. No assurance can be given that we will be able to complete refinancing transactions or otherwise extend our debt maturities. In this regard, it is difficult to predict how political, economic and ~~economic~~social conditions, sovereign debt concerns or any adverse regulatory developments will impact the credit and equity markets we access and our future financial position. Our ability to access debt financing on favorable terms, or at all, could be adversely impacted by (i) the financial failure of any of our counterparties, which could (a) reduce amounts available under committed credit facilities and (b) adversely impact our ability to access cash deposited with any failed financial institution, and (ii) tightening of the credit markets and (iii) in the case of Liberty Puerto Rico, by the adverse impacts of the hurricanes on its operations. For additional information regarding the impacts of the hurricanes, see the related discussion under ~~Overview~~ ~~above.~~markets. In addition, any weakness in the equity markets could make it less attractive to use our shares to satisfy contingent or other obligations, and sustained or increased competition, particularly in combination with adverse economic or regulatory developments, could have an unfavorable impact on our cash flows and liquidity.

Condensed Consolidated Statements of Cash Flows

General. Our cash flows are subject to variations due to FX.

Summary. Our condensed consolidated statements of cash flows for the ~~three~~six months ended ~~March 31, 2018~~June 30, 2023 and ~~2017~~2022 are summarized as follows:


	Three months ended March 31,										Six months ended June 30,
	2018			2017			Change				2023		2022		Change
	in millions										in millions

Net cash provided by operating activities	$	163.2		$	75.0		$	88.2		Net cash provided by operating activities	$	288.0	$	347.1	$	(59.1)
Net cash used by investing activities	(187.8		)	(127.0		)	(60.8		)	Net cash used by investing activities	(291.1)		(342.9)		51.8
Net cash provided (used) by financing activities	(11.8		)	34.5			(46.3		)	Net cash provided (used) by financing activities	(132.7)		31.1		(163.8)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.1			(0.5		)	0.6			Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4.2)		(2.4)		(1.8)
Net decrease in cash, cash equivalents and restricted cash	$	(36.3	)	$	(18.0	)	$	(18.3	)
Net increase (decrease) in cash, cash equivalents and restricted cash										Net increase (decrease) in cash, cash equivalents and restricted cash	$	(140.0)	$	32.9	$	(172.9)

Operating Activities.The ~~increase~~decrease in ~~net~~ cash provided by ~~our~~ operating activities is primarily ~~attributable~~due to the net effect of (i) ~~an increase from~~a decline in Adjusted OIBDA and related working capital items ~~inclusive of a net advance payment received from our third-party insurance provider of $30 million~~and (ii) an increase associated with ~~the initial insurance claims filed in connection with damages sustained from the hurricanes, and (ii) lower interest payments.~~derivative instruments.

Investing Activities. The ~~increase in net~~ cash used by ~~our~~ investing activities isduring 2023 primarily ~~attributable~~relates to ~~higher~~(i) capital expenditures, as further discussed ~~below.~~below, and (ii) the purchase of additional investments made during the year.The cash used by investing activities during 2022 primarily relates to (i) capital expenditures and (ii) acquisitions. The cash used for acquisitions during the 2022 period comprises cash paid for the BBVI Acquisition, partially offset by cash received in connection with finalizing the purchase price of the Liberty Telecomunicaciones Acquisition. For additional information regarding our acquisitions, see note 4 to our condensed consolidated financial statements.

The capital expenditures, net, that we report in our condensed consolidated statements of cash flows, which relates to cash paid for property and equipment, do not include amounts that are financed under capital-related vendor financing or ~~capital~~finance lease arrangements. Instead, these amounts are reflected as non-cash additions to our property and equipment when the underlying assets are delivered and as repayments of debt when the principal is repaid. In this discussion, we refer to (i) our capital expenditures, net, as reported in our condensed consolidated statements of cash flows, ~~which exclude amounts financed under capital-related vendor financing or capital lease arrangements,~~ and (ii) our total property and equipment additions, which include our capital expenditures, net, on an accrual basis and amounts financed under capital-related vendor financing or ~~capital~~finance lease arrangements. ~~For further details regarding our property and equipment additions, see note 16 to our condensed consolidated financial statements.~~

A reconciliation of our property and equipment additions to our capital expenditures, net, as reported in our condensed consolidated statements of cash flows, is set forth below:


	Six months ended June 30,
	2023		2022
	in millions

Property and equipment additions	$	337.1	$	367.1
Assets acquired under capital-related vendor financing arrangements	(71.9)		(67.5)
Changes in current liabilities related to capital expenditures and other	7.9		19.5
Capital expenditures, net	$	273.1	$	319.1

Three months ended March 31,
2018 2017
in millions

Property and equipment additions $ 194.0
$ 139.2
Assets acquired under capital-related vendor financing arrangements (20.7 ) (14.1 )
Assets acquired under capital leases (0.6 ) (0.9 )
Changes in current liabilities related to capital expenditures 15.5
0.2
Capital expenditures $ 188.2
$ 124.4

~~Our~~The decrease in our property and equipment additions ~~increased~~ during the ~~three~~six months ended ~~March 31, 2018,~~ June 30, 2023,as compared to the corresponding period in ~~2017, largely~~2022,is primarily due to thenet effect of (i) a decrease associated with the disposition of the Chile JV Entities in October 2022, and(ii) an increase related to baseline additions and new build activity. During the six months ended June 30, 2023 and 2022, our property and equipment additions represented15.1% and 15.1% of revenue, respectively.

Financing Activities. During the six months ended June 30, 2023, we used$133 million of cash from financing activities, primarily due to(i) $80 million of cash outflow associated with the repurchase of Liberty Latin America common shares, (ii) $41 million in payments related to distributions to noncontrolling interest owners in C&W Panama and C&W Bahamas, and

(iii) $15 million of payments for financing costs and debt premiums, primarily associated with refinancing activity at Liberty Costa Rica. During the six months ended June 30, 2022, we generated $31 million of cash from financing activities, primarily due to the net effect of (i) ~~an increase in expenditures by Liberty Puerto Rico and C&W, primarily related to $62~~$153 million and $8 million, respectively, in connection with network restoration activities following Hurricanes Irma and Maria, and (ii) a decrease due to FX. During the three months ended March 31, 2018 and 2017, our property and equipment additions represented 21.3% and 15.3% of revenue, respectively. This increase in property and equipment additions as a percentage of revenue is primarily a function of the significant increase in property and equipment additions during the first quarter of 2018 as a result of the restoration activities at Liberty Puerto Rico and, to a lesser extent at C&W, following the hurricanes.

~~Financing Activities.~~ During the three months ended March 31, 2018, we used $12 million in net cash from financing activities, primarily relating to $19 million of cash used in connection with the C&W Jamaica NCI Acquisition, which was partially offset by a $10 million capital contribution from Searchlight indirectly to Liberty Puerto Rico for purposes of funding liquidity shortfalls following the impact of the hurricanes. For additional information see note 10 to our condensed consolidated financial statements. During the three months ended March 31, 2017, we received $35 million in net cash from financing activities, which includes $63 million in net borrowings of debt, ~~partially offset by distributions to~~(ii) $119 million associated with the repurchase of Liberty ~~Global~~Latin America common shares and ~~noncontrolling interest owners~~(iii) $12 million of ~~$19 million and $15 million, respectively.~~

~~Adjusted Free Cash Flow~~

~~We define adjusted free cash flow as~~ net cash provided by our operating activities, plus (i) cash payments for third-party costs directly associated with successful and unsuccessful acquisitions and dispositions and (ii) expenses financed by an intermediary, less (a) capital expenditures, (b) distributionsreceived related to ~~noncontrolling interest owners, (c) principal payments on amounts financed by vendors and intermediaries and (d) principal payments on capital leases. We changed~~derivative instruments, primarily related to the ~~way we define adjusted free cash flow effective December 31, 2017~~settlement of certain cross currency swaps at VTR prior to deduct distributions to noncontrolling interest owners. This change was given effect for all periods presented. Additionally, on January 1, 2018, we retroactively adopted ASU 2016-18, which resulted in an immaterial decrease in cash from operating activities for the ~~three months ended March 31, 2017. For additional information regarding~~disposition of the impact of adopting ASU 2016-18, see note 2 to our condensed consolidated financial statements. We believe that our presentation of adjusted free cash flow provides useful information to our investors because this measure can be used to gauge our ability to service debt and fund new investment opportunities. Adjusted free cash flow should not be understood to represent our ability to fund discretionary amounts, as we have various mandatory and contractual obligations, including debt repayments, which are not deducted to arrive at this amount. Investors should view adjusted free cash flow as a supplement to, and not a substitute for, U.S. GAAP measures of liquidity included in our condensed consolidated statements of cash flows.Chile JV Entities.

~~The following table provides the details of our adjusted free cash flow:~~

Three months ended March 31,
2018 2017
in millions

Net cash provided by operating activities $ 163.2
$ 75.0
Cash payments for direct acquisition and disposition costs 0.1
0.9
Expenses financed by an intermediary (a) 32.3
10.3
Capital expenditures (188.2 ) (124.4 )
Distribution to noncontrolling interest owners —
(14.6 )
Principal payments on amounts financed by vendors and intermediaries (51.1 ) (18.8 )
Principal payments on capital leases (2.0 ) (1.9 )
Adjusted free cash flow $ (45.7 ) $ (73.5 )

~~(a)~~

For purposes of our condensed consolidated statements of cash flows, expenses, including VAT, financed by an intermediary are treated as hypothetical operating cash outflows and hypothetical financing cash inflows. When we pay the financing intermediary, we record financing cash outflows in our condensed consolidated statements of cash flows. For purposes of our adjusted free cash flow definition, we add back the hypothetical operating cash outflow when these financed expenses are incurred and deduct the financing cash outflows when we pay the financing intermediary.

Off Balance Sheet Arrangements

Contractual Commitments

For information concerning ~~certain indemnifications provided by C&W,~~our debt and operating lease obligations, see ~~note 15~~notes 8 and 9, respectively, to our condensed consolidated financial statements.

~~Contractual Commitments~~

~~The following table sets forth the U.S. dollar equivalents of our commitments as of March 31, 2018:~~

Payments due during Total
Remainder of 2018 2019 2020 2021 2022 2023 Thereafter
in millions

Debt (excluding interest) $ 173.2
$ 257.8
$ 64.9
$ 125.0
$ 1,615.2
$ 206.3
$ 3,981.0
$ 6,423.4
Capital leases (excluding interest) 11.9
3.3
1.5
0.1
—
—
—
16.8
Programming commitments 120.3
58.3
24.4
18.0
2.2
1.5
0.7
225.4
Network and connectivity commitments 82.2
74.2
25.9
18.5
14.6
13.9
24.3
253.6
Purchase commitments 110.7
27.6
9.6
1.1
1.1
0.6
—
150.7
Operating leases 22.5
20.6
16.9
13.4
11.4
9.1
17.3
111.2
Other commitments 8.9
2.8
1.6
1.4
1.3
1.3
10.0
27.3
Total (a) $ 529.7
$ 444.6
$ 144.8
$ 177.5
$ 1,645.8
$ 232.7
$ 4,033.3
$ 7,208.4
Projected cash interest payments on debt and capital lease obligations (b) $ 218.9
$ 373.7
$ 352.8
$ 349.1
$ 300.0
$ 237.6
$ 411.7
$ 2,243.8

~~(a)~~

The commitments included in this table do not reflect any liabilities that are included in our March 31, 2018 condensed consolidated balance sheet other than debt and capital lease obligations. Our liability for uncertain tax positions in the various jurisdictions in which we operate ($318 million~~at March 31, 2018) has been excluded from the table as the amount and timing of any related payments are not subject to reasonable estimation.~~


~~(b)~~	Amounts are based on interest rates, interest payment dates, commitment fees and contractual maturities in effect as of March 31, 2018. These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods. In addition, ~~the amounts presented do not include the impact of our derivative contracts.~~

For information concerning our debt and capital lease obligations, see note 8 to our condensed consolidated financial statements. For information concerning our commitments, see note 15 to our condensed consolidated financial statements.

~~In addition to the commitments set forth in the table above,~~ we have commitments under (i) derivative instruments and (ii) defined benefit plans and similar agreements, pursuant to which we expect to make payments in future periods. For information regarding projected cash flows associated with our derivative instruments, see Item 3. Quantitative and Qualitative Disclosures About Market Risk—Projected Cash Flows Associated with Derivative Instruments below. For information regarding our derivative instruments, including the net cash paid or received in connection with these instruments during the ~~three~~six months ended ~~March 31, 2018~~June 30, 2023 and ~~2017,~~2022, see note 5 to our condensed consolidated financial statements.


~~Item 3.~~	~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information in this section should be read in conjunction with the more complete discussion that appears under Quantitative and Qualitative Disclosures About Market Risk in our ~~2017~~2022 Form 10-K. ~~The following discussion updates selected numerical information to March 31, 2018.~~

We are exposed to market risk in the normal course of our business operations due to our investments in various countries and ongoing investing and financing activities. Market risk refers to the risk of loss arising from adverse changes in foreign currency exchange rates, interest rates and stock prices. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. As further described below, we have established policies, procedures and processes governing our management of market risks and the use of derivative instruments to manage our exposure to such risks.

Cash and Investments

We invest our cash in highly liquid instruments that meet high credit quality standards. We are exposed to exchange rate risk to the extent that the denominations of our cash and cash equivalent balances, revolving lines of credit and other short-term sources of liquidity do not correspond to the denominations of Liberty Latin America’s short-term liquidity requirements. In order to mitigate this risk, we actively manage the denominations of our cash balances in consideration of Liberty Latin America’s forecasted liquidity requirements. ~~At March 31, 2018, a significant proportion of our cash balance was denominated in U.S. dollars or denominated in a currency that is indexed to the U.S. dollar.~~

Foreign Currency ~~Exchange~~ Rates

The ~~relationship~~relationships between the (i) ~~the British pound sterling, the Chilean peso~~JMD and ~~the Jamaican dollar~~CRC and (ii) the U.S. dollar, which is our reporting currency, isare shown below, per one U.S. dollar:

March 31, 2018 December 31, 2017
Spot rates:
British pound sterling 0.71
0.74
Chilean peso 603.90
615.40
Jamaican dollar 126.22
124.58


	June 30, 2023	December 31, 2022
Spot rates:
JMD	153.51	151.92
CRC	546.43	591.80

Three months ended March 31,
2018 2017
Average rates:
British pound sterling 0.72
0.81
Chilean peso 602.37
655.13
Jamaican dollar 125.80
128.58


	Three months ended June 30,		Six months ended June 30,
	2023	2022	2023	2022
Average rates:
JMD	152.87	153.91	152.93	154.39
CRC	540.45	674.27	551.61	659.60

Interest Rate Risks

In general, we seek to enter into derivative instruments to protect against increases in the interest rates on our variable-rate debt. Accordingly, we have entered into various derivative transactions to reduce exposure to increases in interest rates. We use interest rate derivative contracts to exchange, at specified intervals, the difference between fixed and variable interest rates calculated by reference to an agreed-upon notional principal amount. ~~We also use interest rate cap agreements that lock in a maximum interest rate if variable rates rise, but also allow our company to benefit from declines in market rates.~~ At ~~March 31, 2018,~~June 30, 2023, we ~~effectively~~ paid a fixed or capped rate of interest ~~rate~~ on ~~97%~~96% of our total ~~debt.~~debt, which includes the impact of our interest rate derivative contracts. The final maturity dates of our various portfolios of interest rate derivative instruments ~~generally fall short of~~match the respective maturities of the underlying variable-rate debt. In this regard, we use judgment to determine the appropriate maturity dates of our portfolios of interest rate derivative instruments, taking into account the relative costs and benefits of different maturity profiles in light of current and expected future market conditions, liquidity issues and other factors. For additional information concerning the impacts of these interest rate derivative instruments, see note 5 to our condensed consolidated financial statements.

Sensitivity Information

Information concerning the sensitivity of the fair value of certain of our more significant derivative instruments to changes in market conditions is set forth below. The potential changes in fair value set forth below do not include any amounts associated with the remeasurement of the derivative asset or liability into the applicable functional currency. For additional information, see notes 5 and 6 to our condensed consolidated financial statements.

~~VTR Cross-currency Derivative Contracts~~

Holding all other factors constant, at March 31, 2018, an instantaneous increase (decrease) of 10% in the value of the Chilean peso relative to the U.S. dollar would have decreased (increased) the aggregate fair value of the VTR cross-currency derivative contracts by approximately CLP 107.5 billion ($178 million).

C&W ~~Cross-currency and~~ Interest Rate Derivative Contracts

Holding all other factors constant, at ~~March 31, 2018:~~June 30, 2023, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the C&W interest rate derivative contracts by approximately $89 million ($90 million).


i.	an instantaneous increase (decrease) in the relevant base rate of 50 basis points (0.50%) would have increased (decreased) the aggregate fair value of the C&W cross-currency and interest rate derivative contracts by approximately $58 million; and


~~ii.~~	an instantaneous increase (decrease) of 10% in the value of the British pound sterling relative to the U.S. dollar would have decreased (increased) the aggregate fair value of the C&W cross-currency and interest rate derivative contracts by approximately £16 million ($22 million).

Liberty Puerto Rico Interest Rate Derivative Contracts

Holding all other factors constant, at June 30, 2023, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the Liberty Puerto Rico interest rate derivative contracts by approximately $27 million ($25 million).

Projected Cash Flows Associated with Derivative Instruments

The following table provides information regarding the projected cash flows associated with our derivative instruments. The U.S. dollar equivalents presented below are based on interest rates and exchange rates that were in effect as of ~~March 31, 2018.~~June 30, 2023. These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods. For additional information regarding our derivative instruments, including our counterparty credit risk, see note 5 to our condensed consolidated financial statements.


	Payments (receipts) due during:														Total
	Remainder of 2023		2024		2025		2026		2027		2028		Thereafter
	in millions
Projected derivative cash payments (receipts), net:
Interest-related (a)	$	(48.5)	$	(98.3)	$	(62.5)	$	(101.0)	$	(101.0)	$	(61.1)	$	(23.9)	$	(496.3)
Other (b)	13.9		6.6		—		—		—		—		—		20.5
Total	$	(34.6)	$	(91.7)	$	(62.5)	$	(101.0)	$	(101.0)	$	(61.1)	$	(23.9)	$	(475.8)

(a)Includes the interest-related cash flows of our interest rate derivative contracts.

(b)Includes amounts related to our foreign currency forward contracts.

Payments (receipts) due during: Total
Remainder of 2018
2019 2020 2021 2022 2023 Thereafter
in millions
Projected derivative cash payments, net:
Interest-related (a) $ 20.4
$ 16.2
$ 9.3
$ 9.3
$ 11.9
$ 13.5
$ 7.5
$ 88.1
Principal-related (b) —
(11.6 ) —
—
150.9
—
28.5
167.8
Other (c) 13.4
—
—
—
—
—
—
13.4
Total $ 33.8
$ 4.6
$ 9.3
$ 9.3
$ 162.8
$ 13.5
$ 36.0
$ 269.3


~~(a)~~	~~Includes interest-related cash flows of our cross-currency and interest rate swap contracts.~~


~~(b)~~	~~Includes the principal-related cash flows of our cross-currency swap contracts.~~


~~(c)~~	~~Includes amounts related to our foreign currency forward contracts.~~


~~Item 4.~~	~~CONTROLS AND PROCEDURES~~

Item 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the ~~Securities~~ Exchange Act ~~of 1934, as amended (the~~ ~~Exchange Act~~), that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the ~~Securities and Exchange Commission’s~~SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our ~~Principle Executive Officer and our Principal Financial Officer (the~~ Executives,), as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, the Executives recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply judgment in evaluating the cost-benefit relationship of possible controls and objectives.

As disclosed in our 2022 Form 10-K, we identified material weaknesses in our internal control over financial reporting. The material weaknesses will not be considered remediated until the applicable new or enhanced controls operate for a sufficient period of time and management has concluded, through testing, that these controls are designed and operating effectively. Our management, with the participation of the Executives, evaluated the effectiveness of our disclosure controls and procedures as of ~~March 31, 2018. Based on that evaluation,~~June 30, 2023. As remediation is not completed, the Executives concluded that our disclosure controls and procedures ~~are effective at the reasonable assurance level~~continue to be ineffective as of ~~March 31, 2018.~~June 30, 2023.

Management’s Remediation Plans

Management, with oversight from the Audit Committee of the Board of Directors, is continuing to implement the remediation plans as disclosed in our 2022 Form 10-K. We believe that these actions and the improvements we expect to achieve, when fully implemented, will strengthen our internal control over financial reporting and remediate the material weaknesses identified.

Changes in Internal Control over Financial Reporting

~~There~~Except as listed below, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the ~~fiscal~~ quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

During the quarter, we made the following changes in our internal control over financial reporting:

•designed and implemented additional manual procedures and controls to enhance our internal control process through a combination of preventative and detective controls;

•a human resource and payroll technology solution was implemented for certain of our segments to standardize and enhance the related processes and controls; and

•held trainings to reinforce control concepts and responsibilities for control performers.

PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

From time to time, our subsidiaries and affiliates have become involved in litigation relating to claims arising out of their operations in the normal course of business. For additional information, see note 16 to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q.

Item 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c)Issuer Purchases of Equity Securities

On February 22, 2022, our Directors approved the Share Repurchase Program. This program authorizes us to repurchase from time to time up to $200 million of our Class A common shares and/or Class C common shares through December 2024. On May 8, 2023, our Directors approved an additional $200 million for the repurchase of our Class A common shares and/or Class C common shares under the Share Repurchase Program through December 2025 through open market purchases at prevailing market prices, in privately negotiated transactions, in block trades, derivative transactions and/or through other legally permissible means. The Share Repurchase Program does not obligate us to repurchase any of our Class A or C common shares.

The following table sets forth information concerning our company’s purchase of its own equity securities during the three months ended June 30, 2023 (in millions, except per share amounts). Due to rounding, the total number of shares purchased during the quarter may not recalculate.


Period	Total number of shares purchased	Average price paid per share (a)		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs

April 1, 2023 through April 30, 2023:
Class A	0.4	$	8.43	0.4	(b)
Class C	1.3	$	8.47	1.3
May 1, 2023 through May 31, 2023:
Class A	0.7	$	8.08	0.7	(b)
Class C	1.9	$	7.88	1.9
June 1, 2023 through June 30, 2023:
Class A	—	$	—	—	(b)
Class C	2.6	$	8.21	2.6
Total – April 1, 2023 through June 30, 2023:
Class A	1.1	$	8.20	1.1	(b)
Class C	5.9	$	8.16	5.9

(a)Average price paid per share includes direct acquisition costs.

(b)At June 30, 2023, the remaining amount authorized for repurchases under the Share Repurchase Program was $175 million.

Item 5. OTHER INFORMATION

During the three months ended June 30, 2023, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.


~~Item 6.~~	Item 6. EXHIBITS

Listed below are the exhibits filed as part of this Quarterly Report on Form 10-Q (according to the number assigned to them in Item 601 of Regulation S-K):



10.1			~~Additional Facility Joinder Agreement dated February 7, 2018 and entered into between, among others, Sable International Finance Limited, Coral-US Co-Borrower LLC and The Bank~~Form of ~~Nova Scotia (incorporated by reference to Exhibit 4.1 to Liberty Latin America’s Current Report on Form 8-K filed on February 12, 2018 (File No. 001-38335)).~~
~~10.2~~	Amended and Restated Credit Agreement, dated ~~March 7, 2018,~~as of January 24, 2020 (as amended by the 2021 Extension Amendment dated as of September 23, 2021, the Term B-6 Joinder dated as of September 23, 2021, and the 2023 Amendment dated as of May 22, 2023) and entered into between, among others, Sable International Finance Limited, Coral-US Co-Borrower LLC and The Bank of Nova Scotia.*#
~~10.3~~		10.2	Form of ~~Share Appreciation Rights~~A mended and Restated Credit Agreement, ~~under~~dated as of March 22, 2021 (as amended by the 2023 Amendment dated as of May 22, 2023) and entered into between, among others, Liberty Latin America 2018 Incentive PlanCommunications of Puerto Rico LLC and The Bank of Nova Scotia.#
~~10.4~~		10.3	~~Deferred Compensation Plan effective~~Form of A mended and Restated Credit Agreement, dated as of March 25, 2021 (as amended by the 2023 Amendment dated as of May ~~1, 2018 (adopted effective March 23, 2018)~~22, 2023) and entered into between, among others, LCPR Loan Financing LLC and The Bank of Nova Scotia.*#
~~10.5~~		31.1	Form of Share Appreciation Rights Agreement between the Registrant and our Chief Executive Officer under the Liberty Latin America 2018 Incentive Plan*
~~31.1~~	Certification of President and Chief Executive Officer.*
31.2			Certification of Senior Vice President and Chief Financial Officer (Principal Financial Officer).*
~~32.1~~		32	Section 1350 Certifications.**
101.SCH
~~101.INS~~	XBRL Instance Document.*
~~101.SCH~~	~~XBRL~~Inline Taxonomy Extension Schema Document.*
101.CAL				XBRL Inline Taxonomy Extension Calculation Linkbase Document.*
101.DEF				XBRL Inline Taxonomy Extension Definition Linkbase.*
101.LAB				XBRL Inline Taxonomy Extension Label Linkbase Document.*
101.PRE				XBRL Inline Taxonomy Extension Presentation Linkbase Document.*
104		Cover Page Interactive Data File.* (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith

** Furnished herewith

# Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. Liberty Latin America hereby undertakes to furnish supplemental copies of any of the omitted schedules and exhibits upon request by the SEC; provided, however, that the Company may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any exhibit so furnished.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



		LIBERTY LATIN AMERICA LTD.

Dated:	~~May~~August 8, ~~2018~~2023	/s/ BALAN NAIR
		Balan Nair President and Chief Executive Officer

Dated:	~~May~~August 8, ~~2018~~2023	/s/ CHRISTOPHER NOYES
		Christopher Noyes Senior Vice President and Chief Financial Officer



þ☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended ~~March 31, 2018~~	June 30, 2023



Bermuda						98-1386359
(State or ~~other jurisdiction~~Other Jurisdiction of ~~incorporation~~Incorporation or ~~organization)~~Organization)						(I.R.S. Employer Identification No.)

2 Church Street, ~~Hamilton~~						~~HM 11~~
Hamilton						HM 11
(Address of ~~principal executive offices)~~Principal Executive Offices)						(Zip Code)


Title of Each Class	Trading Symbols	Name of Each Exchange on Which Registered
Class A Common Shares, par value $0.01 per share	LILA	The NASDAQ Stock Market LLC
Class C Common Shares, par value $0.01 per share	LILAK	The NASDAQ Stock Market LLC



¨ ☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to



		Page Number
	PART I - FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS
	Condensed Consolidated Balance Sheets as of ~~March 31, 2018~~June 30, 2023 and December 31, ~~2017~~2022 (unaudited)	1
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended ~~March 31, 2018~~June 30, 2023 and ~~2017~~2022 (unaudited)	3
	Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended ~~March 31, 2018~~June 30, 2023 and ~~2017~~2022 (unaudited)	4
	Condensed Consolidated ~~Statement~~Statements of Equity for the Three and Six Months Ended ~~March 31, 2018~~June 30, 2023 and 2022 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the ~~Three~~Six Months Ended ~~March 31, 2018~~June 30, 2023 and ~~2017~~2022 (unaudited)	67
	Notes to Condensed Consolidated Financial Statements (unaudited)	79
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	3335
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	5469
Item 4.	CONTROLS AND PROCEDURES	5671
	PART II - OTHER INFORMATION
Item 1.	LEGAL PROCEEDINGS	72
Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	72
Item 5.	OTHER INFORMATION	72
Item 6.	EXHIBITS	5773



	March 31, 2018		December 31, 2017
	March 31, 2018		December 31, 2017
	in millions
ASSETS
Current assets:
Cash and cash equivalents	$	510.6	$	529.9
Trade receivables, net of allowances of $142.4 million and $142.2 million, respectively	581.2		556.5
Prepaid expenses	64.8		65.5
Other current assets	245.7		222.9
Total current assets	1,402.3		1,374.8

Goodwill	5,663.6		5,673.6
Property and equipment, net	4,236.2		4,169.2
Intangible assets subject to amortization, net	1,251.6		1,316.2
Intangible assets not subject to amortization	565.9		565.4
Other assets, net	579.4		517.7
Total assets	$	13,699.0	$	13,616.9



	March 31, 2018			December 31, 2017
	March 31, 2018			December 31, 2017
	in millions
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	276.7		$	286.8
Deferred revenue	159.3			143.4
Current portion of debt and capital lease obligations	212.3			263.3
Accrued capital expenditures	108.3			128.6
Accrued interest	58.8			115.6
Accrued income taxes	88.7			91.5
Other accrued and current liabilities	691.2			557.7
Total current liabilities	1,595.3			1,586.9
Long-term debt and capital lease obligations	6,207.1			6,108.2
Deferred tax liabilities	516.6			533.4
Other long-term liabilities	783.1			697.8
Total liabilities	9,102.1			8,926.3

Commitments and contingencies

Equity:
Liberty Latin America shareholders:
Class A, $0.01 par value; 500,000,000 shares authorized; 48,438,433 and 48,428,841 shares issued and outstanding, respectively	0.5			0.5
Class B, $0.01 par value; 50,000,000 shares authorized; 1,938,625 and 1,940,193 shares issued and outstanding, respectively	—			—
Class C, $0.01 par value; 500,000,000 shares authorized; 120,859,778 and 120,843,539 shares issued and outstanding, respectively	1.2			1.2
Undesignated preference shares, $0.01 par value; 50,000,000 shares authorized; nil shares issued and outstanding at each period	—			—
Additional paid-in capital	4,397.5			4,402.8
Accumulated deficit	(1,066.3		)	(1,010.7		)
Accumulated other comprehensive loss, net of taxes	(86.2		)	(64.2		)
Total Liberty Latin America shareholders	3,246.7			3,329.6
Noncontrolling interests	1,350.2			1,361.0
Total equity	4,596.9			4,690.6
Total liabilities and equity	$	13,699.0		$	13,616.9



	Balance at December 31, 2017			Cumulative catch up adjustments upon adoption			Balance at January 1, 2018
	in millions
Assets:
Other current assets	$	222.9		$	15.8		$	238.7
Other assets, net	$	517.7		$	15.6		$	533.3

Liabilities:
Deferred revenue	$	143.4		$	13.3		$	156.7
Other long-term liabilities	$	697.8		$	25.6		$	723.4

Equity:
Accumulated deficit	$	(1,010.7	)	$	(11.1	)	$	(1,021.8	)
Noncontrolling interests	$	1,361.0		$	3.6		$	1,364.6



	Before adoption of ASU 2014-09		Impact of ASU 2014-09 Increase (decrease)			As reported
	in millions

Revenue	$	909.0	$	0.9		$	909.9

Operating costs and expenses – selling, general and administrative	$	193.6	$	(0.3	)	$	193.3

Non-operating expense – interest expense	$	98.3	$	4.2		$	102.5

Income tax expense	$	17.3	$	(0.5	)	$	16.8

Net loss	$	51.8	$	2.5		$	54.3



	March 31, 2018						December 31, 2017
	Current (a)		Long-term (a)		Total		Current (a)		Long-term (a)		Total
	in millions
Assets:
Cross-currency and interest rate derivative contracts (b)	$	16.5	$	100.6	$	117.1	$	2.9	$	38.4	$	41.3
Foreign currency forward contracts	—		0.4		0.4		—		—		—
Total	$	16.5	$	101.0	$	117.5	$	2.9	$	38.4	$	41.3

Liabilities:
Cross-currency and interest rate derivative contracts (b)	$	62.1	$	125.2	$	187.3	$	29.4	$	51.9	$	81.3
Foreign currency forward contracts	13.4		—		13.4		12.8		—		12.8
Total	$	75.5	$	125.2	$	200.7	$	42.2	$	51.9	$	94.1



Borrowing group	Notional amount due from counterparty		Notional amount due to counterparty		Weighted average remaining life
	in millions				in years

C&W	$	108.3	JMD	13,817.5	4.8
	$	35.4	COP	106,000.0	4.3
	£	146.7	$	194.3	1.0

VTR Finance	$	1,400.0	CLP	951,390.0	4.2



	January 1, 2018		Foreign currency translation adjustments			March 31, 2018
	in millions

C&W	$	4,962.5	$	(18.3	)	$	4,944.2
VTR	433.4		8.3			441.7
Liberty Puerto Rico	277.7		—			277.7
Total	$	5,673.6	$	(10.0	)	$	5,663.6



Revenue	$	4.0
Allocated share-based compensation expense	(3.3		)
Charges from Liberty Global	(3.0		)
Included in operating income	(2.3		)
Interest income	1.5
Allocated tax expense	(1.8		)
Included in net loss	$	(2.6	)



	Employee severance and termination			Contract termination and other			Total
	in millions

Restructuring liability as of January 1, 2018	$	6.2		$	25.4		$	31.6
Restructuring charges	24.1			1.6			25.7
Cash paid	(5.5		)	(1.3		)	(6.8		)
Foreign currency translation adjustments	—			0.4			0.4
Restructuring liability as of March 31, 2018	$	24.8		$	26.1		$	50.9

Current portion	$	24.3		$	12.4		$	36.7
Noncurrent portion	0.5			13.7			14.2
Total	$	24.8		$	26.1		$	50.9



	Number of shares	Weighted average base price		Weighted average remaining contractual term
Share-based incentive award type				in years
Stock appreciation rights (SARs):
Class A common shares:
Outstanding	1,274,964	$	26.50	5.7
Exercisable	336,956	$	30.95	4.5
Class C common shares:
Outstanding	2,603,506	$	26.84	5.6
Exercisable	737,051	$	31.17	4.3



	Three months ended March 31,
	2018 (a)	2017 (b)

Weighted average shares outstanding - basic and dilutive	171,231,111	172,743,854



	Payments due during:
	Remainder of 2018
	Remainder of 2018		2019		2020		2021		2022		2023		Thereafter		Total
	in millions

Programming commitments	$	120.3	$	58.3	$	24.4	$	18.0	$	2.2	$	1.5	$	0.7	$	225.4
Network and connectivity commitments	82.2		74.2		25.9		18.5		14.6		13.9		24.3		253.6
Purchase commitments	110.7		27.6		9.6		1.1		1.1		0.6		—		150.7
Operating leases (a)	22.5		20.6		16.9		13.4		11.4		9.1		17.3		111.2
Other commitments (a)	8.9		2.8		1.6		1.4		1.3		1.3		10.0		27.3
Total (b)	$	344.6	$	183.5	$	78.4	$	52.4	$	30.6	$	26.4	$	52.3	$	768.2



	Three months ended March 31, 2018
	C&W		VTR		Liberty Puerto Rico		Intersegment Eliminations			Total
	in millions
Residential revenue:
Residential fixed revenue:
Subscription revenue (a):
Video	$	42.7	$	99.7	$	23.3	$	—		$	165.7
Broadband internet	53.7		96.6		25.3		—			175.6
Fixed-line telephony	26.9		34.6		3.5		—			65.0
Total subscription revenue	123.3		230.9		52.1		—			406.3
Non-subscription revenue (b)	21.5		7.5		1.7		—			30.7
Total residential fixed revenue	144.8		238.4		53.8		—			437.0
Residential mobile revenue:
Subscription revenue (a)	155.1		16.3		—		—			171.4
Non-subscription revenue (c)	22.1		3.2		—		—			25.3
Total residential mobile revenue	177.2		19.5		—		—			196.7
Total residential revenue	322.0		257.9		53.8		—			633.7
B2B revenue:
Subscription revenue	—		5.6		4.3		—			9.9
Non-subscription revenue (d)	203.9		0.3		3.0		(1.2		)	206.0
Sub-sea network revenue (e)	59.6		—		—		—			59.6
Total B2B revenue	263.5		5.9		7.3		(1.2		)	275.5
Other revenue	—		—		0.7		—			0.7
Total	$	585.5	$	263.8	$	61.8	$	(1.2	)	$	909.9



	Three months ended March 31, 2017
	C&W		VTR		Liberty Puerto Rico		Intersegment Eliminations			Total
	in millions
Residential revenue:
Residential fixed revenue:
Subscription revenue:
Video	$	40.5	$	87.4	$	42.7	$	—		$	170.6
Broadband internet	52.8		82.3		40.4		—			175.5
Fixed-line telephony	29.3		34.3		6.4		—			70.0
Total subscription revenue	122.6		204.0		89.5		—			416.1
Non-subscription revenue	23.5		7.4		5.9		—			36.8
Total residential fixed revenue	146.1		211.4		95.4		—			452.9
Residential mobile revenue:
Subscription revenue	161.8		12.6		—		—			174.4
Non-subscription revenue	19.9		2.3		—		—			22.2
Total residential mobile revenue	181.7		14.9		—		—			196.6
Total residential revenue	327.8		226.3		95.4		—			649.5
B2B revenue:
Subscription revenue	—		2.7		6.7		—			9.4
Non-subscription revenue	201.4		0.3		3.3		(0.7		)	204.3
Sub-sea network revenue	46.4		—		—		—			46.4
Total B2B revenue	247.8		3.0		10.0		(0.7		)	260.1
Other revenue	—		—		1.3		—			1.3
Total	$	575.6	$	229.3	$	106.7	$	(0.7	)	$	910.9



	Subscription revenue			Non-subscription revenue			Total
	in millions
Increase (decrease) in residential fixed subscription revenue due to change in:
Average number of RGUs (a)	$	4.0		$	—		$	4.0
ARPU (b)	(3.7		)	—			(3.7		)
Decrease in residential fixed non-subscription revenue (c)	—			(2.0		)	(2.0		)
Total increase (decrease) in residential fixed revenue	0.3			(2.0		)	(1.7		)
Increase (decrease) in residential mobile revenue (d)	(7.1		)	2.2			(4.9		)
Increase in B2B revenue (e)	—			0.1			0.1
Increase in B2B sub-sea network revenue (f)	—			5.1			5.1
Total organic increase (decrease)	(6.8		)	5.4			(1.4		)
Impact of the C&W Carve-out Acquisition	—			9.5			9.5
Impact of FX	0.8			1.0			1.8
Total	$	(6.0	)	$	15.9		$	9.9



	Three months ended
	March 31, 2018		December 31, 2017		March 31, 2017
	in millions
Residential fixed revenue:
Subscription revenue:
Video	$	23.3	$	5.3	$	42.7
Broadband internet	25.3		7.8		40.4
Fixed-line telephony	3.5		1.2		6.4
Total subscription revenue	52.1		14.3		89.5
Non-subscription revenue	1.7		0.5		5.9
Total residential fixed revenue	53.8		14.8		95.4
B2B revenue:
Subscription revenue	4.3		1.3		6.7
Non-subscription revenue	3.0		0.7		3.3
Total B2B revenue	7.3		2.0		10.0
Other revenue	0.7		0.1		1.3
Total	$	61.8	$	16.9	$	106.7



Cash and cash equivalents held by:
Liberty Latin America and unrestricted subsidiaries:
Liberty Latin America (a)	$	70.6
Unrestricted subsidiaries (b)	38.9
Total Liberty Latin America and unrestricted subsidiaries	109.5
Borrowing groups (c):
C&W (d)	291.6
VTR Finance	69.0
Liberty Puerto Rico	40.5
Total borrowing groups	401.1
Total cash and cash equivalents	$	510.6



	Payments due during														Total
	Remainder of 2018		2019		2020		2021		2022		2023		Thereafter		Total
	in millions

Debt (excluding interest)	$	173.2	$	257.8	$	64.9	$	125.0	$	1,615.2	$	206.3	$	3,981.0	$	6,423.4
Capital leases (excluding interest)	11.9		3.3		1.5		0.1		—		—		—		16.8
Programming commitments	120.3		58.3		24.4		18.0		2.2		1.5		0.7		225.4
Network and connectivity commitments	82.2		74.2		25.9		18.5		14.6		13.9		24.3		253.6
Purchase commitments	110.7		27.6		9.6		1.1		1.1		0.6		—		150.7
Operating leases	22.5		20.6		16.9		13.4		11.4		9.1		17.3		111.2
Other commitments	8.9		2.8		1.6		1.4		1.3		1.3		10.0		27.3
Total (a)	$	529.7	$	444.6	$	144.8	$	177.5	$	1,645.8	$	232.7	$	4,033.3	$	7,208.4
Projected cash interest payments on debt and capital lease obligations (b)	$	218.9	$	373.7	$	352.8	$	349.1	$	300.0	$	237.6	$	411.7	$	2,243.8