Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 28, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38335 | |
Entity Registrant Name | Liberty Latin America Ltd. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-1386359 | |
Entity Address, Address Line One | 2 Church Street, | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM 11 | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 295-5950 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001712184 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Shares, par value $0.01 per share | |
Trading Symbol | LILA | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 49,003,226 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,934,057 | |
Class C | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class C Shares, par value $0.01 per share | |
Trading Symbol | LILAK | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 131,601,021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,593.3 | $ 1,183.8 |
Trade receivables, net of allowances of $99.2 million and $87.3 million, respectively | 572 | 585.2 |
Prepaid expenses | 63.7 | 58.9 |
Other current assets, net | 226.3 | 227.3 |
Total current assets | 2,455.3 | 2,055.2 |
Goodwill | 4,808.3 | 4,906.4 |
Property and equipment, net | 4,163.5 | 4,301.1 |
Restricted cash | 1,276.4 | 1,272.2 |
Intangible assets subject to amortization, net | 920.4 | 969.2 |
Intangible assets not subject to amortization | 558.4 | 560.8 |
Other assets, net | 1,016.2 | 872.6 |
Total assets | 15,198.5 | 14,937.5 |
Current liabilities: | ||
Accounts payable | 272.4 | 346.6 |
Current portion of deferred revenue | 137.8 | 160.9 |
Current portion of debt and finance lease obligations | 281.2 | 180.2 |
Accrued capital expenditures | 57.1 | 72.1 |
Accrued interest | 115.7 | 132.6 |
Accrued payroll and employee benefits | 68.5 | 88.9 |
Other accrued and current liabilities | 615.7 | 594.7 |
Total current liabilities | 1,548.4 | 1,576 |
Long-term debt and finance lease obligations | 8,548.7 | 8,189.8 |
Deferred tax liabilities | 390.8 | 401.8 |
Deferred revenue | 205.5 | 210.9 |
Other long-term liabilities | 695.7 | 579.1 |
Total liabilities | 11,389.1 | 10,957.6 |
Commitments and contingencies | ||
Liberty Latin America shareholders: | ||
Undesignated preference shares, $0.01 par value; 50,000,000 shares authorized; nil shares issued and outstanding at each period | 0 | 0 |
Additional paid-in capital | 4,592.2 | 4,569.9 |
Accumulated deficit | (1,628) | (1,447.1) |
Accumulated other comprehensive loss, net of taxes | (21) | (14.8) |
Treasury shares, at cost; 170,313 and nil shares, respectively | (1.7) | 0 |
Total Liberty Latin America shareholders | 2,943.3 | 3,109.8 |
Noncontrolling interests | 866.1 | 870.1 |
Total equity | 3,809.4 | 3,979.9 |
Total liabilities and equity | 15,198.5 | 14,937.5 |
Class A, $0.01 par value; 500,000,000 shares authorized; 49,031,543 and 48,976,205 shares issued and outstanding, respectively, at March 31, 2020 and 48,795,552 shares issued and outstanding at December, 31, 2019 | ||
Liberty Latin America shareholders: | ||
Common stock | 0.5 | 0.5 |
Class B, $0.01 par value; 50,000,000 shares authorized; 1,934,057 shares issued and outstanding at March 31, 2020 and 1,934,686 shares issued and outstanding at December 31, 2019 | ||
Liberty Latin America shareholders: | ||
Common stock | 0 | 0 |
Class C, $0.01 par value; 500,000,000 shares authorized; 131,671,137 and 131,556,162 shares issued and outstanding, respectively, at March 31, 2020 and 131,181,371 shares issued and outstanding at December 31, 2019 | ||
Liberty Latin America shareholders: | ||
Common stock | $ 1.3 | $ 1.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Trade receivables, net allowance | $ 99.2 | $ 87.3 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury shares (in shares) | 170,313 | 0 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 49,031,543 | 48,795,552 |
Common stock, shares outstanding (in shares) | 48,976,205 | 48,795,552 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 1,934,057 | 1,934,686 |
Common stock, shares outstanding (in shares) | 1,934,057 | 1,934,686 |
Class C | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 131,671,137 | 131,556,162 |
Common stock, shares outstanding (in shares) | 131,671,137 | 131,556,162 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 931 | $ 942.7 |
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below): | ||
Programming and other direct costs of services | 210.8 | 225.4 |
Other operating | 184.8 | 172.8 |
Selling, general and administrative (SG&A) | 195.3 | 193.4 |
Depreciation and amortization | 213.5 | 217.3 |
Impairment, restructuring and other operating items, net | 18.8 | 20.5 |
Operating costs and expenses (exclusive of depreciation and amortization) | 823.2 | 829.4 |
Operating income | 107.8 | 113.3 |
Non-operating income (expense): | ||
Interest expense | (143.3) | (115.7) |
Realized and unrealized gains (losses) on derivative instruments, net | 17.4 | (69) |
Foreign currency transaction gains (losses), net | (164.3) | 32.2 |
Losses on debt modification and extinguishment | (3.4) | 0 |
Other income, net | 6.8 | 2.4 |
Non-operating income (expense) | (286.8) | (150.1) |
Loss before income taxes | (179) | (36.8) |
Income tax expense | (5.6) | (4.4) |
Net loss | (184.6) | (41.2) |
Net loss (earnings) attributable to noncontrolling interests | 3.9 | (0.5) |
Net loss attributable to Liberty Latin America shareholders | $ (180.7) | $ (41.7) |
Basic and diluted net loss per share attributable to Liberty Latin America shareholders (in dollars per share) | $ (0.99) | $ (0.23) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (184.6) | $ (41.2) |
Other comprehensive earnings (loss), net of taxes: | ||
Foreign currency translation adjustments | (4.7) | 12.3 |
Reclassification adjustments included in net loss | (2.8) | (1.3) |
Pension-related adjustments and other, net | 1.1 | (1) |
Other comprehensive earnings (loss) | (6.4) | 10 |
Comprehensive loss | (191) | (31.2) |
Comprehensive loss (earnings) attributable to noncontrolling interests | 4.1 | (0.8) |
Comprehensive loss attributable to Liberty Latin America shareholders | $ (186.9) | $ (32) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (unaudited) - USD ($) $ in Millions | Total | Total Liberty Latin America shareholders | Common sharesClass A | Common sharesClass B | Common sharesClass C | Treasury Stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss, net of taxes | Non-controlling interests |
Balance at Dec. 31, 2018 | $ 4,123.4 | $ 3,112.6 | $ 0.5 | $ 0 | $ 1.3 | $ 0 | $ 4,494.1 | $ (1,367) | $ (16.3) | $ 1,010.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | (41.2) | (41.7) | (41.7) | 0.5 | ||||||
Other comprehensive loss | 10 | 9.7 | 9.7 | 0.3 | ||||||
Impact of Acquisitions | 11.6 | 11.6 | ||||||||
Share-based compensation | 14.5 | 14.5 | 14.5 | |||||||
Balance at Mar. 31, 2019 | 4,118.3 | 3,095.1 | 0.5 | 0 | 1.3 | 0 | 4,508.6 | (1,408.7) | (6.6) | 1,023.2 |
Balance at Dec. 31, 2019 | 3,979.9 | 3,109.8 | 0.5 | 0 | 1.3 | 0 | 4,569.9 | (1,447.1) | (14.8) | 870.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | (184.6) | (180.7) | (180.7) | (3.9) | ||||||
Other comprehensive loss | (6.4) | (6.2) | (6.2) | (0.2) | ||||||
Stock Repurchased During Period, Value | (1.7) | (1.7) | (1.7) | |||||||
Impact of Acquisitions | 0.9 | 0.9 | 0.9 | |||||||
Share-based compensation | 21.4 | 21.4 | 21.4 | |||||||
Other | (0.1) | (0.1) | ||||||||
Balance at Mar. 31, 2020 | $ 3,809.4 | $ 2,943.3 | $ 0.5 | $ 0 | $ 1.3 | $ (1.7) | $ 4,592.2 | $ (1,628) | $ (21) | $ 866.1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (184.6) | $ (41.2) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Share-based compensation expense | 23.8 | 14.7 |
Depreciation and amortization | 213.5 | 217.3 |
Impairment | 1.7 | 0.1 |
Amortization of debt financing costs, premiums and discounts, net | 7.9 | 0.6 |
Realized and unrealized losses (gains) on derivative instruments, net | (17.4) | 69 |
Foreign currency transaction losses (gains), net | 164.3 | (32.2) |
Loss on debt modification and extinguishment | 3.4 | 0 |
Deferred income tax benefit | (20.3) | (21.6) |
Changes in operating assets and liabilities, net of the effect of an acquisition | (77.4) | (18.9) |
Net cash provided by operating activities | 114.9 | 187.8 |
Cash flows from investing activities: | ||
Capital expenditures | (149.2) | (159.6) |
Cash paid in connection with an acquisition, net of cash acquired | 1.8 | (160.1) |
Recovery on damaged or destroyed property and equipment | 0 | 33.9 |
Other investing activities, net | 0.3 | 0.3 |
Net cash used by investing activities | (147.1) | (285.5) |
Cash flows from financing activities: | ||
Borrowings of debt | 539.6 | 201.3 |
Payments of principal amounts of debt and finance lease obligations | (48.8) | (160.2) |
Payment of financing costs and debt premiums | (25.9) | 0 |
Repurchase of Liberty Latin America Shares | (1.4) | 0 |
Distributions to noncontrolling interest owners | (0.7) | 0 |
Other financing activities, net | (7.4) | (1.8) |
Net cash provided by financing activities | 455.4 | 39.3 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (8.5) | 2.5 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 414.7 | (55.9) |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 2,457 | 642 |
End of period | 2,871.7 | 586.1 |
Cash paid for interest | 145.3 | 155.2 |
Net cash paid for taxes | $ 12.5 | $ 21.5 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Liberty Latin America Ltd. ( Liberty Latin America ) is a registered company in Bermuda that primarily includes (i) Cable & Wireless Communications Limited ( C&W ) and its subsidiaries, (ii) VTR Finance B.V. ( VTR Finance ) and its subsidiaries, which include VTR.com SpA ( VTR ), (iii) Leo Cable LP ( Leo Cable ) and its subsidiaries, which includes Liberty Cablevision of Puerto Rico LLC ( LCPR ), collectively “ Liberty Puerto Rico ”, and (iv) LBT CT Communications, S.A. (a less than wholly-owned entity) and its subsidiary, Cabletica S.A. ( Cabletica ). C&W owns less than 100% of certain of its consolidated subsidiaries, including The Bahamas Telecommunications Company Limited ( C&W Bahamas ), Cable & Wireless Jamaica Limited ( C&W Jamaica ), and Cable & Wireless Panama, S.A. ( C&W Panama ). For information regarding the percentages of certain of our less than wholly-owned consolidated subsidiaries, see Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview. We are an international provider of fixed, mobile and subsea telecommunications services. We provide residential and business-to-business ( B2B ) services in (i) over 20 countries, primarily in Latin America and the Caribbean, through C&W , (ii) Chile and Costa Rica, through VTR/Cabletica , and (iii) Puerto Rico, through Liberty Puerto Rico . Through our “ Networks & LatAm ” business, C&W also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region. In these notes, the terms “ we ,” “ our ,” “ our company ” and “ us ” may refer, as the context requires, to Liberty Latin America or collectively to Liberty Latin America and its subsidiaries. Unless otherwise indicated, ownership percentages and convenience translations into United States ( U.S. ) dollars are calculated as of March 31, 2020 . The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ( U.S. GAAP ) and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by U.S. GAAP or Securities and Exchange Commission rules and regulations for complete financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our 2019 Annual Report on Form 10-K (the 2019 Form 10-K ). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and assumptions are used in accounting for, among other things, the valuation of acquisition-related assets and liabilities, expected credit losses, programming and copyright expenses, deferred income taxes and related valuation allowances, loss contingencies, fair value measurements, impairment assessments, capitalization of internal costs associated with construction and installation activities, useful lives of long-lived assets and actuarial liabilities associated with certain benefit plans. Actual results could differ from those estimates. |
Accounting Changes and Recent A
Accounting Changes and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Recent Accounting Pronouncements | Accounting Changes and Recent Accounting Pronouncements Accounting Changes ASU 2018-15 In August 2018, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ( ASU 2018-15 ). ASU 2018-15 provides additional guidance on ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance (i) provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense, (ii) requires an entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement and (iii) clarifies the presentation requirements for reporting such costs in the entity’s financial statements. We adopted ASU 2018-15 effective January 1, 2020 on a prospective basis for all implementation costs incurred after the date of adoption and it is not expected to have a material impact on our condensed consolidated financial statements. ASU 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments ( ASU 2016-13 ), as amended by (i) ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which amended certain effective dates, and (ii) ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies guidance around how to report expected recoveries. ASU 2016-13 replaces the incurred loss impairment methodology for recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We are required to use a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments. We adopted ASU 2016-13 effective January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to retained earnings to align our credit loss methodology with the new standard. The comparative information has not been restated and continues to be reported under the accounting standards in effect for that period. Under the new model, we segment our receivables, unbilled revenue and contract assets based on days past due and record an allowance for current expected credit losses using average rates applied against each account’s applicable aggregate balance for each aging bucket. We establish the average rates based on consideration of the actual credit loss experience over the prior 12-month period, recent collection trends, current economic conditions and reasonable expectations of future payment delinquency. The cumulative effect of the changes to our condensed consolidated balance sheet as of January 1, 2020 was not material. As of March 31, 2020 , the impact of COVID-19 , as defined and further described in note 8 , has not had a material impact on our results of operations, financial position or cash flows. We will continue to actively monitor the impact of COVID-19 on our expected credit losses. Recent Accounting Pronouncements ASU 2018-14 In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans ( ASU 2018-14 ), which removes and modifies certain existing disclosure requirements and adds new disclosure requirements related to employer sponsored defined benefit pension or other postretirement plans. ASU 2018-14 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect that ASU 2018-14 will have on our disclosures. ASU 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ( ASU 2019-12 ), which (i) simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods, and (ii) reduces the complexity in certain areas of existing tax guidance, including the recognition of deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. Although we are currently evaluating the effect that ASU 2019-12 will have on our consolidated financial statements, we do not expect it will have a material impact. ASU 2020-04 In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ( ASU 2020-04 ), which provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates, such as the London Inter-Bank Offered Rate ( LIBOR ), which regulators in the United Kingdom ( U.K. ) have announced will be phased out by the end of 2021. The expedients and exceptions provided by ASU 2020-04 are for the application of U.S. GAAP to contracts, hedging relationships and other transactions affected by the rate reform, and will not be available after December 31, 2022, other than for certain hedging relationships entered into before December 31, 2022. We do not currently expect that the phase out of LIBOR will have a material impact on our consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The following accounting policy reflects an update to the Summary of Significant Accounting Policies included in our 2019 Form 10-K resulting from the adoption of ASU 2016-13 : Trade Receivables Our trade receivables are reported net of an allowance for credit losses. The allowance is established using our best estimates of current expected credit losses based upon, among other things, actual credit loss experience over the prior 12-month period, recent collection trends, prevailing and anticipated economic conditions and specific customer credit risk. Receivables outstanding greater than 30 days are considered past due and we generally write-off receivables after they become past due for 365 days, with the exception of certain amounts due from a single government. Concentration of credit risk with respect to trade receivables is limited due to the large number of customers and their dispersion across many different countries, with the exception of certain amounts due from a single government. Changes in the allowance for credit losses are set forth below: January 1, Provision for expected losses Write-offs Foreign currency translation adjustments and other March 31, in millions C&W $ 60.6 $ 10.4 $ (6.4 ) $ 7.7 $ 72.3 VTR/Cabletica 16.0 4.0 (2.2 ) (1.7 ) 16.1 Liberty Puerto Rico 10.7 1.3 (1.7 ) 0.5 10.8 Total $ 87.3 $ 15.7 $ (10.3 ) $ 6.5 $ 99.2 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Pending Acquisition On October 9, 2019, Leo Cable and Liberty Latin America entered into a stock purchase agreement with certain subsidiaries of AT&T Inc. ( AT&T ) to acquire AT&T ’s wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands (the AT&T Acquisition ) in an all-cash transaction. The AT&T Acquisition companies provide consumer mobile and B2B services in Puerto Rico and the U.S. Virgin Islands, excluding DirecTV customers. The AT&T Acquisition is valued at an enterprise value of $1,950 million on a cash- and debt-free basis, subject to certain adjustments. We intend to finance this acquisition, including related fees and expenses, through a combination of net proceeds from the 2027 LPR Senior Secured Notes , the 2026 SPV Credit Facility and available liquidity. For further information about our debt and available liquidity, see note 9 . The transaction is subject to customary closing conditions, including reviews by the United States Federal Communications Commission ( FCC ) and the Department of Justice ( DOJ ). We currently expect the transaction to close in the second half of 2020. AT&T will provide ongoing support to the companies associated with the AT&T Acquisition under a transition services agreement (the AT&T TSA ) for a period up to 36 months following the closing date of the acquisition. Services under the AT&T TSA include, but are not limited to, (i) wireless core, (ii) technology development, (iii) global technology operations, (iv) wireless engineering, (v) network infrastructure, (vi) supply chain and (vii) finance and sales operations. We may terminate any services under the AT&T TSA upon sixty business days’ notice to AT&T in accordance with the terms and conditions of the AT&T TSA . 2019 Acquisition UTS . Effective March 31, 2019 , we completed the acquisition of an 87.5% interest in United Telecommunication Services N.V. ( UTS ) for an initial cash purchase price of $162 million , which was subject to certain potential post-closing adjustments, based on an enterprise value of $189 million (the UTS Acquisition ). As noted below, during the first quarter of 2020, the purchase price was reduced by $6 million related to certain post-closing working capital adjustments. During the third quarter of 2019, we increased our ownership interest in UTS from 87.5% to 100% . UTS provides fixed and mobile services to the island nations of Curaçao, St. Maarten, St. Martin, Bonaire, St. Barths, St. Eustatius and Saba. The UTS Acquisition was funded through a $170 million draw on the C&W Revolving Credit Facility , as defined in note 9 . We have accounted for the UTS Acquisition as a business combination using the acquisition method of accounting, whereby the total purchase price was allocated to the acquired identifiable net assets of UTS based on assessments of their respective fair values, and the excess of the purchase price over the fair values of these identifiable net assets was allocated to goodwill. A summary of the purchase price and opening balance sheet of UTS at the effective March 31, 2019 acquisition date is presented in the following table. The opening balance sheet presented below reflects our final purchase price allocation (in millions): Cash $ 2.7 Trade receivables 19.0 Other current assets 6.7 Property and equipment 158.4 Goodwill (a) 17.1 Intangible assets subject to amortization 24.0 Other assets 18.2 Accounts payable (27.9 ) Other accrued and current liabilities (31.9 ) Other long-term liabilities (18.8 ) Noncontrolling interest (b) (11.6 ) Total purchase price (c) (d) $ 155.9 (a) The goodwill recognized in connection with the UTS Acquisition is primarily attributable to (i) the ability to take advantage of UTS ’s existing broadband communications and mobile networks to gain immediate access to potential customers, and (ii) synergies that are expected to be achieved through the integration of UTS with C&W ’s existing business in Curacao. (b) Amount represents the estimated aggregate fair value of the noncontrolling interest in UTS as of March 31, 2019 . (c) Excludes $3 million of direct acquisition costs incurred during 2019 and 2018. Direct acquisition costs are included in impairment, restructuring and other operating items, net, in our condensed consolidated statements of operations. (d) Pursuant to the purchase agreement, which permits certain post-closing working capital adjustments, the UTS Acquisition purchase price was reduced by $6 million during the first quarter of 2020. This amount was recorded as a receivable in other current assets in our condensed consolidated balance sheet as of March 31, 2020 and was received subsequent to March 31, 2020. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments In general, we seek to enter into derivative instruments to protect against (i) increases in the interest rates on our variable-rate debt and (ii) foreign currency movements, particularly with respect to borrowings that are denominated in a currency other than the functional currency of the borrowing entity. In this regard, through our subsidiaries, we have entered into various derivative instruments to manage interest rate exposure and foreign currency exposure with respect to the U.S. dollar ( $ ), the Chilean peso ( CLP ), the Colombian peso ( COP ) and the Jamaican dollar ( JMD ). With the exception of certain foreign currency forward contracts, we do not apply hedge accounting to our derivative instruments. Accordingly, changes in the fair values of most of our derivative instruments are recorded in realized and unrealized gains or losses on derivative instruments in our condensed consolidated statements of operations. The following table provides details of the fair values of our derivative instrument assets and liabilities: March 31, 2020 December 31, 2019 Current (a) Long-term (a) Total Current (a) Long-term (a) Total in millions Assets: Cross-currency and interest rate derivative contracts (b) $ 20.4 $ 277.5 $ 297.9 $ 23.4 $ 126.9 $ 150.3 Foreign currency forward contracts 14.1 — 14.1 9.8 — 9.8 Total $ 34.5 $ 277.5 $ 312.0 $ 33.2 $ 126.9 $ 160.1 Liabilities: Cross-currency and interest rate derivative contracts (b) $ 69.0 $ 215.3 $ 284.3 $ 34.9 $ 99.6 $ 134.5 Foreign currency forward contracts — — — 0.5 — 0.5 Total $ 69.0 $ 215.3 $ 284.3 $ 35.4 $ 99.6 $ 135.0 (a) Our current derivative assets, current derivative liabilities, long-term derivative assets and long-term derivative liabilities are included in other current assets, net, other accrued and current liabilities, other assets, net, and other long-term liabilities, respectively, in our condensed consolidated balance sheets. (b) We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 9 ). The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in net gains of $33 million and $2 million during the three months ended March 31, 2020 and 2019 , respectively. The gain during the 2020 period is primarily due to increased credit risk stemming from market reaction to the COVID-19 outbreak . These amounts are included in realized and unrealized gains (losses) on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 6 . The derivative assets set forth in the table above exclude our Weather Derivatives , as defined below, as they are not accounted for at fair value. The Weather Derivatives are included in other current assets, net, in our condensed consolidated balance sheet. The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows: Three months ended March 31, 2020 2019 in millions Cross-currency and interest rate derivative contracts $ 9.3 $ (70.0 ) Foreign currency forward contracts and other (a) 8.1 1.0 Total $ 17.4 $ (69.0 ) (a) The amount for the 2020 period includes $2 million of amortization of the premiums associated with our Weather Derivative contracts (the Weather Derivatives ), which we entered into during the second quarter of 2019. The following table sets forth the classification of the net cash inflows of our derivative instruments: Three months ended March 31, 2020 2019 in millions Operating activities $ 4.0 $ 12.0 Investing activities 2.8 1.6 Financing activities (4.3 ) (0.5 ) Total $ 2.5 $ 13.1 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, 2020 , our exposure to counterparty credit risk included derivative assets with an aggregate fair value of $297 million . Each of our borrowing groups has entered into derivative instruments under agreements with each counterparty that contain master netting arrangements that are applicable in the event of early termination by either party to such derivative instrument. The master netting arrangements under each of these master agreements are limited to the derivative instruments governed by the relevant master agreement within each individual borrowing group and are independent of similar arrangements of our other subsidiary borrowing groups. Details of our Derivative Instruments Cross-currency Derivative Contracts As noted above, we are exposed to foreign currency exchange rate risk in situations where our debt is denominated in a currency other than the functional currency of the operations whose cash flows support our ability to service, repay or refinance such debt. Although we generally seek to match the denomination of our borrowings with the functional currency of the operations that are supporting the respective borrowings, market conditions or other factors may cause us to enter into borrowing arrangements that are not denominated in the functional currency of the underlying operations (unmatched debt). Our policy is generally to provide for an economic hedge against foreign currency exchange rate movements, whenever possible and when cost effective to do so, by using derivative instruments to synthetically convert unmatched debt into the applicable underlying currency. The following table sets forth the total notional amounts and the related weighted average remaining contractual lives of our cross-currency swap contracts at March 31, 2020 : 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 6.8 $ 56.3 COP 180,000.0 6.3 VTR Finance $ 1,260.0 CLP 854,020.0 2.3 Interest Rate Derivative Contracts Interest Rate Swaps As noted above, we enter into interest rate swaps to protect against increases in the interest rates on our variable-rate debt. Pursuant to these derivative instruments, we typically pay fixed interest rates and receive variable interest rates on specified notional amounts. The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our interest rate swap contracts at March 31, 2020 : Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W (a) $ 2,425.0 5.9 VTR Finance $ 165.0 2.9 Liberty Puerto Rico $ 1,000.0 6.3 Cabletica $ 53.5 3.3 (a) Includes forward-starting derivative instruments. Basis Swaps Basis swaps involve the exchange of attributes used to calculate our floating interest rates, including (i) the benchmark rate, (ii) the underlying currency and/or (iii) the borrowing period. We typically enter into these swaps to optimize our interest rate profile based on our current evaluations of yield curves, our risk management policies and other factors. The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our basis swap contracts at March 31, 2020 : Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W $ 1,510.0 0.8 Liberty Puerto Rico $ 1,000.0 0.8 Foreign Currency Forwards Contracts We enter into foreign currency forward contracts with respect to non-functional currency exposure. At March 31, 2020 , our foreign currency forward contracts had total notional amounts due from and to counterparties of $90 million and CLP 64 billion , respectively, with a weighted average remaining contractual life of 0.3 years . All of our foreign currency forward contracts are held by our VTR Finance borrowing group. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements General We use the fair value method to account for most of our derivative instruments and the available-for-sale method to account for our investment in U.K. Government Gilts. The reported fair values of our derivative instruments as of March 31, 2020 likely will not represent the value that will be paid or received upon the ultimate settlement or disposition of these assets and liabilities, as we expect that the values realized generally will be based on market conditions at the time of settlement, which may occur at the maturity of the derivative instrument or at the time of the repayment or refinancing of the underlying debt instrument. U.S. GAAP provides for a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Recurring Fair Value Measurements Derivatives In order to manage our interest rate and foreign currency exchange risk, we have entered into various derivative instruments, as further described in note 5 . The recurring fair value measurements of these derivative instruments are determined using discounted cash flow models. Most of the inputs to these discounted cash flow models consist of, or are derived from, observable Level 2 data for substantially the full term of these derivative instruments. This observable data mostly includes interest rate futures and swap rates, which are retrieved or derived from available market data. Although we may extrapolate or interpolate this data, we do not otherwise alter this data in performing our valuations. We incorporate a credit risk valuation adjustment in our fair value measurements to estimate the impact of both our own nonperformance risk and the nonperformance risk of our counterparties. Our and our counterparties’ credit spreads represent our most significant Level 3 inputs, and these inputs are used to derive the credit risk valuation adjustments with respect to these instruments. Notwithstanding the impact of COVID-19 on our credit risk, we generally would not expect changes in our or our counterparties’ credit spreads to have a significant impact on the valuations of these instruments. As a result, we have determined that these valuations continue to fall under Level 2 of the fair value hierarchy. Our credit risk valuation adjustments with respect to our cross-currency and interest rate derivative contracts are quantified and further explained in note 5 . Due to the lack of Level 2 inputs for the valuation of the U.S. dollar to the Jamaican dollar cross-currency swaps (the Sable Currency Swaps ) held by Sable International Finance Limited ( Sable ), a wholly-owned subsidiary of C&W , we believe this valuation falls under Level 3 of the fair value hierarchy. The Sable Currency Swaps are our only Level 3 financial instruments. The fair values of the Sable Currency Swaps at March 31, 2020 and December 31, 2019 were $20 million and $30 million , respectively, which are included in other long-term liabilities in our condensed consolidated balance sheets. The change in the fair values of the Sable Currency Swaps resulted in net gains of $10 million and $1 million during the three months ended March 31, 2020 and 2019 , respectively, which are reflected in realized and unrealized gains (losses) on derivative instruments, net, in our condensed consolidated statements of operations. Available-for-sale Investments Our investment in U.K. Government Gilts falls under Level 1 of the fair value hierarchy. At March 31, 2020 and December 31, 2019 , the carrying values of our investment in U.K. Government Gilts, which are included in other assets, net, in our condensed consolidated balance sheets, were $35 million and $37 million , respectively. Nonrecurring Fair Value Measurements Fair value measurements are also used for purposes of nonrecurring valuations performed in connection with acquisition accounting and impairment assessments. Acquisition Accounting The nonrecurring valuations associated with acquisition accounting, which use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy, primarily include the valuation of customer relationships and property and equipment, as further described below: • Customer relationships. The valuation of customer relationships is primarily based on an excess earnings methodology, which is a form of a discounted cash flow analysis. The excess earnings methodology for customer relationship intangible assets requires us to estimate the specific cash flows expected from the acquired customer relationships, considering such factors as estimated customer life, the revenue expected to be generated over the life of the customer relationships, contributory asset charges and other factors. • Property and equipment . Property and equipment is typically valued using a replacement or reproduction cost approach, considering factors such as current prices of the same or similar equipment, the age of the equipment and economic obsolescence. During the three months ended March 31, 2020 , we performed a nonrecurring valuation related to the acquisition accounting for the UTS Acquisition . The weighted average discount rate used in the final valuation of the customer relationships acquired as a result of the UTS Acquisition was approximately 13.5% . |
Insurance Recoveries
Insurance Recoveries | 3 Months Ended |
Mar. 31, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Insurance Recoveries | Insurance Recoveries In September 2017, Hurricanes Irma and Maria impacted a number of our markets in the Caribbean, resulting in varying degrees of damage to homes, businesses and infrastructure in these markets. In October 2016, our operations in the Bahamas, which is part of our C&W segment, were significantly impacted by Hurricane Matthew. In December 2018, we settled our insurance claims for Hurricanes Irma, Maria and Matthew, as follows: (i) $109 million for Hurricanes Maria and Irma, after deducting $30 million of self-insurance, and (ii) $12 million for Hurricane Matthew, after deducting $15 million of self-insurance. During the first quarter of 2019, we received the then outstanding insurance settlement amount of $67 million , of which $33 million and $34 million have been presented as operating and investing activities, respectively, in our condensed consolidated statement of cash flows. With respect to the cash received, $37 million , $27 million and $3 million was provided to C&W , Liberty Puerto Rico |
Long-lived Assets
Long-lived Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Long-lived Assets | Long-lived Assets Goodwill Changes in the carrying amount of our goodwill are set forth below: January 1, Acquisitions and related adjustments Foreign currency translation adjustments March 31, in millions C&W $ 4,110.8 $ (20.0 ) $ (33.1 ) $ 4,057.7 VTR/Cabletica 517.9 — (45.0 ) 472.9 Liberty Puerto Rico 277.7 — — 277.7 Total $ 4,906.4 $ (20.0 ) $ (78.1 ) $ 4,808.3 During the first quarter of 2020, the World Health Organization declared the outbreak of a novel strain of Coronavirus ( COVID-19 ) a “pandemic,” pointing to the sustained risk of further global spread. Through the first quarter of 2020, the impacts of COVID-19 did not have a significant impact on our operating results or cash flows. Notwithstanding the lack of a significant impact of COVID-19 on our first quarter results, as of March 31, 2020, we did evaluate whether the facts and circumstances and available information result in the need for an impairment assessment for any of our long-lived assets, including goodwill, and concluded no assessment was required. COVID-19 has resulted in systemic disruption of the worldwide equity markets, and the market values of our publicly-traded equity declined significantly beginning in late February. If, among other factors, (i) our equity values were to remain at these declined levels for a sustained period or were to decline further or (ii) the adverse impacts stemming from COVID-19 , competition, economic, regulatory or other factors, including macro-economic and demographic trends, were to cause our results of operations or cash flows to be worse than anticipated, we could conclude in future periods that impairment charges are required in order to reduce the carrying values of goodwill. Any such impairment charges could be significant. Our accumulated goodwill impairments were $1,348 million at March 31, 2020 and December 31, 2019 . Property and Equipment, Net The details of our property and equipment and the related accumulated depreciation are set forth below: March 31, December 31, in millions Distribution systems $ 4,205.0 $ 4,299.6 Customer premises equipment ( CPE ) 1,727.4 1,763.8 Support equipment, buildings and land 1,492.1 1,530.9 7,424.5 7,594.3 Accumulated depreciation (3,261.0 ) (3,293.2 ) Total $ 4,163.5 $ 4,301.1 During the three months ended March 31, 2020 and 2019 , we recorded non-cash increases to our property and equipment related to vendor financing arrangements aggregating $24 million and $11 million , respectively. Intangible Assets Subject to Amortization, Net The details of our intangible assets subject to amortization are set forth below: March 31, December 31, in millions Gross carrying amount: Customer relationships $ 1,481.8 $ 1,482.9 Licenses and other 169.4 170.1 Total gross carrying amount 1,651.2 1,653.0 Accumulated amortization: Customer relationships (689.3 ) (645.5 ) Licenses and other (41.5 ) (38.3 ) Total accumulated amortization (730.8 ) (683.8 ) Net carrying amount $ 920.4 $ 969.2 |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Debt and Lease Obligation [Abstract] | |
Debt and Finance Lease Obligations | Debt and Finance Lease Obligations The U.S. dollar equivalents of the components of our debt are as follows: March 31, 2020 Estimated fair value (c) Principal amount Weighted Unused borrowing capacity (b) Borrowing currency US $ equivalent March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 in millions Convertible Notes (d) 2.00 % $ — $ — $ 327.0 $ 430.1 $ 402.5 $ 402.5 C&W Notes 6.74 % — — 1,987.3 2,270.9 2,270.0 2,120.0 C&W Credit Facilities 4.23 % $ 426.3 426.3 2,054.7 2,017.1 2,193.3 2,006.1 VTR Finance Senior Notes 6.88 % — — 1,150.6 1,290.9 1,260.0 1,260.0 VTR Credit Facilities 5.16 % (e) 145.7 273.7 229.7 295.8 231.4 LPR Senior Secured Notes 6.75 % — — 1,197.4 1,278.3 1,200.0 1,200.0 LPR Credit Facilities 5.90 % $ 62.5 62.5 979.7 1,012.1 1,062.5 1,000.0 Cabletica Credit Facilities 8.67 % (f) 15.0 114.6 123.8 123.5 124.8 Vendor financing (g) 4.05 % — — 167.7 167.7 167.7 167.7 Total debt before premiums, discounts and deferred financing costs 5.76 % $ 649.5 $ 8,252.7 $ 8,820.6 $ 8,975.3 $ 8,512.5 The following table provides a reconciliation of total debt before premiums, discounts and deferred financing costs to total debt and finance lease obligations: March 31, 2020 December 31, 2019 in millions Total debt before premiums, discounts and deferred financing costs $ 8,975.3 $ 8,512.5 Premiums, discounts and deferred financing costs, net (148.3 ) (146.1 ) Total carrying amount of debt 8,827.0 8,366.4 Finance lease obligations 2.9 3.6 Total debt and finance lease obligations 8,829.9 8,370.0 Less: Current maturities of debt and finance lease obligations (281.2 ) (180.2 ) Long-term debt and finance lease obligations $ 8,548.7 $ 8,189.8 (a) Represents the weighted average interest rate in effect at March 31, 2020 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. (b) Unused borrowing capacity represents the maximum availability under the applicable facility at March 31, 2020 without regard to covenant compliance calculations or other conditions precedent to borrowing. At March 31, 2020 , the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after completion of the March 31, 2020 compliance reporting requirements. At March 31, 2020 , there were no restrictions on the respective subsidiary’s ability to upstream from this availability to Liberty Latin America or its subsidiaries or other equity holders. (c) The estimated fair values of our debt instruments are determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy). The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors. For additional information regarding fair value hierarchies, see note 6 . (d) The interest rate reflects the stated rate of the Convertible Notes . The effective interest rate of the Convertible Notes is 6.7% , which considers the impact of a discount recorded in connection with the value ascribed to the instrument’s conversion option. (e) The VTR Credit Facilities comprise certain CLP term loans and U.S. dollar and CLP revolving credit facilities, including unused borrowing capacity. (f) The Cabletica Credit Facilities comprise certain Costa Rican colón and U.S. dollar term loans and a U.S. dollar revolving credit facility. (g) Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our operating expenses and property and equipment additions. These obligations are generally due within one year and include value-added taxes ( VAT ) that were paid on our behalf by the vendor. Our operating expenses include $33 million and $31 million for the three months ended March 31, 2020 and 2019 , respectively, that were financed by an intermediary and are reflected on the borrowing date as a hypothetical cash outflow within net cash provided by operating activities and a hypothetical cash inflow within net cash provided by financing activities in our condensed consolidated statements of cash flows. Repayments of vendor financing obligations are included in payments of principal amounts of debt and finance lease obligations in our condensed consolidated statements of cash flows. 2020 Financing and Refinancing Transactions C&W C&W Term Loan B-5 Facility . In January 2020, Coral-US Co-Borrower LLC, a wholly-owned subsidiary of C&W , entered into a LIBOR plus 2.25% $1,510 million principal amount term loan facility (the C&W Term Loan B-5 Facility ), issued at par, due January 31, 2028. Interest is payable monthly beginning on February 28, 2020. 2027 C&W Senior Secured Notes Add-on . In January 2020, Sable issued an additional $150 million aggregate principal amount, at 106.0% of par, under the existing 2027 C&W Senior Secured Notes indenture (the 2027 C&W Senior Secured Notes Add-on ). The terms and conditions of the 2027 C&W Senior Secured Notes Add-on are consistent with the original indenture. The net proceeds from the C&W Term Loan B-5 Facility and the 2027 C&W Senior Secured Notes Add-on were primarily used to repay in full the $1,640 million outstanding principal amount under the C&W Term Loan B-4 Facility , including accrued and unpaid interest. In connection with these transactions, we recognized a loss on debt modification and extinguishment of $3 million , which primarily includes the write-off of unamortized discounts and deferred financing costs. C&W Borrowing Group Refinancing Transactions . In January 2020, C&W completed a series of transactions contemplated by and permitted under its existing debt agreements (the C&W Borrowing Group Refinancing Transactions ) that ultimately resulted in the 2026 C&W Senior Notes and the 2027 C&W Senior Notes (previously issued by C&W Senior Financing Designated Activity Company) instead being directly issued by a wholly-owned subsidiary of C&W , C&W Senior Finance Limited. In connection with the C&W Borrowing Group Refinancing Transactions , the loans previously made by C&W Senior Financing Designated Activity Company are no longer outstanding. The terms and conditions applicable to the 2026 C&W Senior Notes and the 2027 C&W Senior Notes otherwise remain substantively unchanged. C&W Revolving Credit Facility . In January 2020, the maturity date associated with $575 million of the existing $625 million C&W Revolving Credit Facility was extended to January 30, 2026. All other terms and conditions of the revolving credit facility remain unchanged. In March 2020, we borrowed $313 million under the C&W Revolving Credit Facility , which is included in cash and cash equivalents on our condensed consolidated balance sheet as of March 31, 2020 . VTR Finance VTR RCF – B . In March 2020, we borrowed $92 million under the VTR RCF – B , which is included in cash and cash equivalents on our condensed consolidated balance sheet as of March 31, 2020 . Liberty Puerto Rico 2019 LPR Revolving Credit Facility . In March 2020, we borrowed $63 million under the 2019 LPR Revolving Credit Facility , which is included in cash and cash equivalents on our condensed consolidated balance sheet as of March 31, 2020 . Maturities of Debt Maturities of our debt as of March 31, 2020 are presented below. Amounts presented below represent U.S. dollar equivalents based on March 31, 2020 exchange rates: C&W VTR Finance Liberty Puerto Rico Cabletica Liberty Latin America Consolidated in millions Years ending December 31: 2020 (remainder of year) $ 75.8 $ 71.3 $ — $ — $ 0.2 $ 147.3 2021 148.0 7.9 — — 1.9 157.8 2022 16.3 82.5 — — 0.3 99.1 2023 150.3 121.3 — 123.5 0.1 395.2 2024 85.8 1,352.0 — — 402.5 1,840.3 2025 3.3 — 62.5 — — 65.8 Thereafter 4,069.8 — 2,200.0 — — 6,269.8 Total debt maturities 4,549.3 1,635.0 2,262.5 123.5 405.0 8,975.3 Premiums, discounts and deferred financing costs, net (31.6 ) (16.8 ) (25.9 ) (2.3 ) (71.7 ) (148.3 ) Total debt $ 4,517.7 $ 1,618.2 $ 2,236.6 $ 121.2 $ 333.3 $ 8,827.0 Current portion $ 200.3 $ 79.1 $ — $ — $ 0.3 $ 279.7 Noncurrent portion $ 4,317.4 $ 1,539.1 $ 2,236.6 $ 121.2 $ 333.0 $ 8,547.3 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The following table provides details of our operating lease expense: Three months ended March 31, 2020 2019 in millions Operating lease expense: Operating lease cost $ 11.8 $ 10.7 Short-term lease cost 2.8 2.1 Total operating lease expense $ 14.6 $ 12.8 The following table provides certain other details of our operating leases at March 31, 2020 : For the three months ended March 31, 2020 (in millions): Operating cash outflows from operating leases $ 10.1 Right-of-use assets obtained in exchange for new operating lease liabilities (a) $ 19.7 As of March 31, 2020 (in millions): Operating lease right-of-use assets (b) $ 161.1 Operating lease liabilities: Current (b) $ 31.6 Noncurrent (b) 121.9 Total operating lease liabilities $ 153.5 Weighted-average remaining lease term 6.6 years Weighted-average discount rate 6.3 % (a) Represents non-cash transactions associated with operating leases entered into during the three months ended March 31, 2020 . (b) Our operating lease right-of-use assets are included in other assets, net, and our current and noncurrent operating lease liabilities are included in other accrued and current liabilities and other long-term liabilities, respectively, in our condensed consolidated balance sheets. Maturities of Operating Leases Maturities of our operating lease liabilities on an undiscounted basis as of March 31, 2020 are presented below along with the current and noncurrent operating lease liabilities on a discounted basis. Such amounts represent U.S. dollar equivalents (in millions) based on March 31, 2020 exchange rates. Years ending December 31: 2020 (remainder of year) $ 30.5 2021 34.4 2022 28.7 2023 22.8 2024 19.1 2025 13.1 Thereafter 42.5 Total operating lease liabilities on an undiscounted basis 191.1 Amount representing interest (37.6 ) Present value of operating lease liabilities $ 153.5 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We evaluate and update our estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. For interim tax reporting, we estimate an annual effective tax rate that is applied to year-to-date ordinary income or loss. The tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Our interim estimate of our annual effective tax rate and our interim tax provision are subject to volatility due to factors such as jurisdictions in which our deferred taxes and/or tax attributes are subject to a full valuation allowance, relative changes in unrecognized tax benefits and changes in tax laws. Based upon the mix and timing of our actual annual earnings or loss compared to annual projections, as well as changes in the factors noted above, our effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. Income tax expense was $6 million and $4 million during the three months ended March 31, 2020 and 2019 , respectively. This represents an effective income tax rate of 3.1% and 12.0% for the three months ended March 31, 2020 and 2019 , respectively, including items treated discretely. For the three months ended March 31, 2020 and 2019 , the income tax expense attributable to our loss before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the net detrimental effects of international rate differences, increases in valuation allowances, changes in uncertain tax positions, and negative effects of permanent items, such as non-deductible expenses. These negative impacts to our effective tax rate were partially offset by the beneficial effects of permanent items, such as non-taxable income. For the three months ended March 31, 2019 , these negative impacts to our effective tax rate were further offset by the beneficial effect of a change in the Barbados statutory tax rate effective March 19, 2019. |
Unfulfilled Performance Obligat
Unfulfilled Performance Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled Performance Obligations | Unfulfilled Performance Obligations We enter into certain long-term capacity contracts with customers where the customer either pays a fixed fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. We assess whether prepaid capacity contracts contain a significant financing component. If the financing component is significant, interest expense is accreted over the life of the contract using the effective interest method. The revenue associated with prepaid capacity contracts is deferred and generally recognized on a straight-line basis over the life of the contract. As of March 31, 2020 , we have approximately $430 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 seven years . |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity Share Repurchase Program On March 16, 2020, our Board of Directors approved a share repurchase program (the Share Repurchase Program ), which authorizes us to repurchase from time to time up to $100 million of our Class A common shares and/or Class C common shares through March 2022, subject to certain limitations and conditions. The Share Repurchase Program does not obligate us to repurchase any of our Class A or C common shares. Under the Share Repurchase Program , we may repurchase our common shares from time to time in open market purchases at prevailing market prices, in privately negotiated transactions, in block trades, derivative transactions and/or through other legally permissible means. During the three months ended March 31, 2020 , we repurchased 55,338 and 114,975 Class A and Class C common shares, respectively. At March 31, 2020 , the remaining amount authorized for share repurchases was $98 million . |
Restructuring Liabilities
Restructuring Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Liabilities | Restructuring Liabilities A summary of changes in our restructuring liability is set forth in the table below: Employee severance and termination Contract termination and other Total in millions Restructuring liability as of January 1, 2020 $ 19.0 $ 13.3 $ 32.3 Restructuring charges 5.6 1.9 7.5 UTS liabilities at acquisition date (a) 2.1 — 2.1 Cash paid (5.0 ) (3.4 ) (8.4 ) Foreign currency translation adjustments (3.7 ) (1.5 ) (5.2 ) Restructuring liability as of March 31, 2020 $ 18.0 $ 10.3 $ 28.3 Current portion $ 15.4 $ 8.5 $ 23.9 Noncurrent portion 2.6 1.8 4.4 Total $ 18.0 $ 10.3 $ 28.3 (a) Represents an adjustment related to the completion of our purchase price accounting for the UTS Acquisition , as further discussed in note 4 . Our restructuring charges during the three months ended March 31, 2020 primarily relate to employee severance and termination costs associated with reorganization programs at C&W and VTR . In addition to the restructuring charges set forth in the table above, we also incurred $2 million in restructuring charges related to employee severance and termination costs at C&W , which impacted our net pension liability. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation The following table summarizes our share-based compensation expense: Three months ended March 31, 2020 2019 in millions Included in: Other operating expense $ 0.4 $ 0.2 SG&A expense 23.4 14.5 Total (a) $ 23.8 $ 14.7 (a) The 2020 amount includes estimated bonus-related expenses for the 2020 year that will be paid in the form of equity. Accordingly, such expenses have been included in share-based compensation expense effective January 1, 2020 and are being accounted for using the liability-based method. Share-based Incentive Awards The following tables summarize the share-based incentive awards related to Liberty Latin America Class A and Class C common shares held by our employees and our board of directors as of March 31, 2020 : Number of Weighted average exercise price Weighted average remaining contractual term Share-based incentive award type in years Stock appreciation rights ( SARs ): Class A common shares: Outstanding 5,476,823 $ 17.50 4.1 Exercisable 1,647,576 $ 23.70 4.3 Class C common shares: Outstanding 11,004,749 $ 17.54 4.1 Exercisable 3,346,678 $ 23.85 4.2 Number of Weighted average remaining contractual term Share-based incentive award type in years Restricted stock units ( RSUs ) outstanding: Class A common shares 536,747 2.6 Class C common shares 1,073,142 2.6 Performance-based restricted stock units ( PSUs ) outstanding: Class A common shares 678,714 1.0 Class C common shares 1,357,440 1.0 During the three months ended March 31, 2020 , we granted SARs with respect to 2,072,276 Class A common shares and 4,144,552 Class C common shares, which have weighted average exercise prices of $10.42 and $10.48 , respectively, and weighted average grant-date fair values of $7.27 and $4.49 , respectively. We also granted RSUs during the three months ended March 31, 2020 with respect to 301,527 Class A common shares and 603,054 Class C common shares, which have weighted average grant-date fair values of $10.42 and $10.48 , respectively. |
Loss per Share
Loss per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss per Share | Loss per Share Basic earnings (loss) per share ( EPS ) is computed by dividing net loss attributable to Liberty Latin America shareholders by the weighted average number of Class A, Class B and Class C common shares of Liberty Latin America (collectively, Liberty Latin America Shares ) outstanding during the periods presented, as further described below. Diluted EPS presents the dilutive effect, if any, on a per share basis of potential shares as if they had been exercised, vested or converted at the beginning of the periods presented. The details of our net loss attributable to Liberty Latin America shareholders are set forth below: Three months ended March 31, 2020 2019 in millions Net loss $ (184.6 ) $ (41.2 ) Net loss (earnings) attributable to noncontrolling interests 3.9 (0.5 ) Net loss attributable to Liberty Latin America shareholders $ (180.7 ) $ (41.7 ) The details of our weighted average shares outstanding are set forth below: Three months ended March 31, 2020 2019 Weighted average shares outstanding - basic and dilutive 182,079,436 181,036,790 We reported losses attributable to Liberty Latin America shareholders during the three months ended March 31, 2020 and 2019 . As a result, the potentially dilutive effect at March 31, 2020 and 2019 of the following items was not included in the computation of diluted loss per share for such periods because their inclusion would have been anti-dilutive to the computation or, in the case of certain PSUs , because such awards had not yet met the applicable performance criteria: (i) using the if-converted method, the aggregate number of shares potentially issuable under our Convertible Notes of approximately 18.1 million and nil , respectively, (ii) the aggregate number of shares issuable pursuant to outstanding options, SARs and RSUs of approximately 22.1 million and 13.1 million , respectively, and (iii) the aggregate number of shares issuable pursuant to outstanding PSUs of approximately 2.0 million and 1.6 million , respectively. A portion of these amounts relate to Liberty Latin America Shares held by employees of Liberty Global plc . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In the normal course of business, we have entered into agreements that commit our company to make cash payments in future periods with respect to programming contracts, network and connectivity commitments, purchases of customer premises and other equipment and services and other items. The following table sets forth the U.S. dollar equivalents of such commitments as of March 31, 2020 : Payments due during: Remainder of 2020 2021 2022 2023 2024 2025 Thereafter Total in millions Programming commitments $ 98.7 $ 106.3 $ 74.3 $ 43.6 $ 35.4 $ 0.3 $ — $ 358.6 Network and connectivity commitments 55.6 35.6 6.0 5.3 4.6 2.5 9.0 118.6 Purchase commitments 160.8 19.4 7.4 0.4 — — — 188.0 Other commitments 13.3 2.3 1.9 1.6 1.6 1.6 9.3 31.6 Total (a) $ 328.4 $ 163.6 $ 89.6 $ 50.9 $ 41.6 $ 4.4 $ 18.3 $ 696.8 (a) The commitments included in this table do not reflect any liabilities that are included in our March 31, 2020 condensed consolidated balance sheet. Programming commitments consist of obligations associated with certain programming, studio output and sports rights contracts that are enforceable and legally binding on us, as we have agreed to pay minimum fees without regard to (i) the actual number of subscribers to the programming services, (ii) whether we terminate service to a portion of our subscribers or dispose of a portion of our distribution systems or (iii) whether we discontinue our premium sports services. In addition, programming commitments do not include increases in future periods associated with contractual inflation or other price adjustments that are not fixed. Accordingly, the amounts reflected in the above table with respect to these contracts are significantly less than the amounts we expect to pay in these periods under these contracts. Historically, payments to programming vendors have represented a significant portion of our operating costs, and we expect that this will continue to be the case in future periods. In this regard, our total programming and copyright costs aggregated $101 million and $111 million during the three months ended March 31, 2020 and 2019 , respectively. Network and connectivity commitments include (i) domestic network service agreements with certain other telecommunications companies and (ii) VTR ’s mobile virtual network operator ( MVNO ) agreement. The amounts reflected in the above table with respect to our MVNO commitment represent fixed minimum amounts payable under this agreement and, therefore, may be significantly less than the actual amounts VTR ultimately pays in these periods. Purchase commitments include unconditional and legally-binding obligations related to (i) the purchase of customer premises and other equipment and (ii) certain service-related commitments, including call center, information technology and maintenance services. In addition to the commitments set forth in the table above, we have commitments under (i) derivative instruments and (ii) defined benefit plans and similar agreements, pursuant to which we expect to make payments in future periods. For information regarding our derivative instruments, including the net cash paid or received in connection with these instruments during the three months ended March 31, 2020 and 2019 , see note 5 . Guarantees and Other Credit Enhancements In the ordinary course of business, we may provide (i) indemnifications to our lenders, our vendors and certain other parties and (ii) performance and/or financial guarantees to local municipalities, our customers and vendors. Historically, these arrangements have not resulted in our company making any material payments and we do not believe that they will result in material payments in the future. 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 expired in April 2020 and the second expires in May 2020. We do not expect that either of these arrangements will require us to make material payments to the indemnified parties. Legal and Regulatory Proceedings and Other Contingencies Regulatory Issues. Video distribution, broadband internet, fixed-line telephony and mobile businesses are regulated in each of the countries in which we operate. The scope of regulation varies from country to country. Adverse regulatory developments could subject our businesses to a number of risks. Regulation, including conditions imposed on us by competition or other authorities as a requirement to close acquisitions or dispositions, could limit growth, revenue and the number and types of services offered and could lead to increased operating costs and property and equipment additions. In addition, regulation may restrict our operations and subject them to further competitive pressure, including pricing restrictions, interconnect and other access obligations, and restrictions or controls on content, including content provided by third parties. Failure to comply with current or future regulation could expose our businesses to various penalties. In addition to the foregoing items, 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 outcomes, we cannot provide a meaningful range of potential losses or cash outflows that might result from any unfavorable outcomes. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting | Segment Reporting We generally identify our reportable segments as those operating segments that represent 10% or more of our revenue, Adjusted OIBDA (as defined below) or total assets. We evaluate performance and make decisions about allocating resources to our reportable segments based on financial measures such as revenue and Adjusted OIBDA . In addition, we review non-financial measures such as subscriber growth. Adjusted OIBDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance. Adjusted OIBDA is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of incentive compensation plans. As we use the term, “ Adjusted OIBDA ” is defined as operating income 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. A reconciliation of total Adjusted OIBDA to operating income and to loss before income taxes is presented below. As of March 31, 2020 , our reportable segments are as follows: • C&W • VTR/Cabletica • Liberty Puerto Rico Our reportable segments derive their revenue primarily from residential and B2B services, including video, broadband internet and fixed-line telephony services and, with the exception of Liberty Puerto Rico , mobile services. We provide residential and B2B services in (i) over 20 countries, primarily in Latin America and the Caribbean, through C&W , (ii) Chile and Costa Rica, through VTR/Cabletica , and (iii) Puerto Rico, through Liberty Puerto Rico . C&W also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region. Our corporate category includes our corporate operations. Performance Measures of our Reportable Segments The amounts presented below represent 100% of the revenue and Adjusted OIBDA of each of our reportable segments and our corporate operations. As we have the ability to control Cabletica and certain subsidiaries of C&W that are not wholly-owned, we include 100% of the revenue and expenses of these entities in our condensed consolidated statements of operations despite the fact that third parties own significant interests in these entities. The noncontrolling owners’ interests in the operating results of (i) certain subsidiaries of C&W and (ii) Cabletica are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations. Revenue Three months ended March 31, 2020 2019 in millions C&W (a) $ 588.6 $ 569.8 VTR/Cabletica 240.1 276.5 Liberty Puerto Rico 104.6 98.6 Intersegment eliminations (2.3 ) (2.2 ) Total $ 931.0 $ 942.7 (a) The amount presented for 2019 excludes the pre-acquisition revenue of UTS , which was acquired effective March 31, 2019 . Adjusted OIBDA Three months ended March 31, 2020 2019 in millions C&W (a) $ 232.8 $ 222.5 VTR/Cabletica 93.4 106.9 Liberty Puerto Rico 50.5 47.9 Corporate (12.8 ) (11.5 ) Total $ 363.9 $ 365.8 (a) The amount presented for 2019 excludes the pre-acquisition Adjusted OIBDA of UTS , which was acquired effective March 31, 2019 . The following table provides a reconciliation of total Adjusted OIBDA to operating income and to loss before income taxes: Three months ended March 31, 2020 2019 in millions Total Adjusted OIBDA $ 363.9 $ 365.8 Share-based compensation expense (23.8 ) (14.7 ) Depreciation and amortization (213.5 ) (217.3 ) Impairment, restructuring and other operating items, net (18.8 ) (20.5 ) Operating income 107.8 113.3 Interest expense (143.3 ) (115.7 ) Realized and unrealized gains (losses) on derivative instruments, net 17.4 (69.0 ) Foreign currency transaction gains (losses), net (164.3 ) 32.2 Losses on debt modification and extinguishment (3.4 ) — Other income, net 6.8 2.4 Loss before income taxes $ (179.0 ) $ (36.8 ) Property and Equipment Additions of our Reportable Segments The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or finance lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our condensed consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing, see note 8 . Three months ended March 31, 2020 2019 in millions C&W (a) $ 70.5 $ 63.6 VTR/Cabletica 44.9 54.1 Liberty Puerto Rico 13.3 19.8 Corporate 4.2 1.6 Total property and equipment additions 132.9 139.1 Assets acquired under capital-related vendor financing arrangements (23.6 ) (10.9 ) Assets acquired under finance leases — (0.1 ) Changes in current liabilities related to capital expenditures 39.9 31.5 Total capital expenditures $ 149.2 $ 159.6 (a) The amount presented for 2019 excludes the pre-acquisition property and equipment additions of UTS , which was acquired effective March 31, 2019 . Revenue by Major Category Our revenue by major category for our reportable segments is set forth in the tables below. Three months ended March 31, 2020 C&W VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (a) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (b): Video $ 44.9 $ 95.0 $ 35.3 $ — $ 175.2 Broadband internet 71.0 94.4 45.5 — 210.9 Fixed-line telephony 24.3 20.3 5.9 — 50.5 Total subscription revenue 140.2 209.7 86.7 — 436.6 Non-subscription revenue (c) 16.9 6.0 4.6 — 27.5 Total residential fixed revenue 157.1 215.7 91.3 — 464.1 Residential mobile revenue: Service revenue (b) 130.9 14.6 — — 145.5 Interconnect, equipment sales and other (d) 17.6 2.0 — — 19.6 Total residential mobile revenue 148.5 16.6 — — 165.1 Total residential revenue 305.6 232.3 91.3 — 629.2 B2B revenue: Service revenue (e) 213.4 7.8 13.3 (0.3 ) 234.2 Subsea network revenue (f) 69.6 — — (2.0 ) 67.6 Total B2B revenue 283.0 7.8 13.3 (2.3 ) 301.8 Total $ 588.6 $ 240.1 $ 104.6 $ (2.3 ) $ 931.0 (a) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica . (b) Residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively. (c) Residential fixed non-subscription revenue primarily includes interconnect and advertising revenue. (d) The total amount includes $10 million of revenue from sales of mobile handsets and other devices. (e) B2B service revenue primarily includes broadband internet, video, fixed-line telephony, mobile and managed services (including equipment installation contracts) offered to small (including small or home office), medium and large enterprises and, on a wholesale basis, other telecommunication operators. The total amount also includes $3 million of revenue from sales of mobile handsets and other devices. (f) B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. Three months ended March 31, 2019 C&W (a) VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (b) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (c): Video $ 43.9 $ 108.7 $ 35.0 $ — $ 187.6 Broadband internet 60.2 104.8 41.8 — 206.8 Fixed-line telephony 24.3 27.5 5.7 — 57.5 Total subscription revenue 128.4 241.0 82.5 — 451.9 Non-subscription revenue (d) 15.0 8.9 5.3 — 29.2 Total residential fixed revenue 143.4 249.9 87.8 — 481.1 Residential mobile revenue: Service revenue (c) 135.0 15.7 — — 150.7 Interconnect, equipment sales and other (e) 19.0 3.4 — — 22.4 Total residential mobile revenue 154.0 19.1 — — 173.1 Total residential revenue 297.4 269.0 87.8 — 654.2 B2B revenue: Service revenue (f) 210.9 7.5 10.8 (0.6 ) 228.6 Subsea network revenue (g) 61.5 — — (1.6 ) 59.9 Total B2B revenue 272.4 7.5 10.8 (2.2 ) 288.5 Total $ 569.8 $ 276.5 $ 98.6 $ (2.2 ) $ 942.7 (a) The amounts presented exclude the pre-acquisition revenue of UTS , which was acquired effective March 31, 2019 . (b) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica . (c) Residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively. (d) Residential fixed non-subscription revenue primarily includes interconnect and advertising revenue. (e) The total amounts include $7 million of revenue from sales of mobile handsets and other devices. (f) B2B service revenue primarily includes broadband internet, video, fixed-line telephony, mobile and managed services (including equipment installation contracts) offered to small (including small or home office), medium and large enterprises and, on a wholesale basis, other telecommunication operators. These amounts also include $4 million of revenue from sales of mobile handsets and other devices. (g) B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. Geographic Markets The revenue from third-party customers for our geographic markets is set forth in the table below. Except as otherwise noted, the amounts presented include revenue from residential and B2B operations. Three months ended March 31, 2020 2019 in millions Panama $ 137.7 $ 140.3 Networks & LatAm (a) 95.0 88.7 Jamaica 96.1 93.0 The Bahamas 49.3 53.6 Barbados 36.7 37.5 Curacao (b) 39.6 7.0 Trinidad and Tobago 40.8 39.6 Chile 206.4 244.0 Costa Rica 33.7 32.5 Puerto Rico 104.3 98.0 Other (c) 91.4 108.5 Total $ 931.0 $ 942.7 (a) The amounts represent managed services and wholesale revenue from various jurisdictions across Latin America and the Caribbean, primarily related to the sale and lease of telecommunications capacity on C&W ’s subsea and terrestrial fiber optic cable networks. (b) The amount presented for 2019 excludes the pre-acquisition revenue of UTS , which was acquired effective March 31, 2019 . (c) The amounts relate to a number of countries in which C&W |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Changes | Accounting Changes ASU 2018-15 In August 2018, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ( ASU 2018-15 ). ASU 2018-15 provides additional guidance on ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance (i) provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense, (ii) requires an entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement and (iii) clarifies the presentation requirements for reporting such costs in the entity’s financial statements. We adopted ASU 2018-15 effective January 1, 2020 on a prospective basis for all implementation costs incurred after the date of adoption and it is not expected to have a material impact on our condensed consolidated financial statements. ASU 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments ( ASU 2016-13 ), as amended by (i) ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which amended certain effective dates, and (ii) ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies guidance around how to report expected recoveries. ASU 2016-13 replaces the incurred loss impairment methodology for recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We are required to use a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments. We adopted ASU 2016-13 effective January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to retained earnings to align our credit loss methodology with the new standard. The comparative information has not been restated and continues to be reported under the accounting standards in effect for that period. Under the new model, we segment our receivables, unbilled revenue and contract assets based on days past due and record an allowance for current expected credit losses using average rates applied against each account’s applicable aggregate balance for each aging bucket. We establish the average rates based on consideration of the actual credit loss experience over the prior 12-month period, recent collection trends, current economic conditions and reasonable expectations of future payment delinquency. The cumulative effect of the changes to our condensed consolidated balance sheet as of January 1, 2020 was not material. As of March 31, 2020 , the impact of COVID-19 , as defined and further described in note 8 , has not had a material impact on our results of operations, financial position or cash flows. We will continue to actively monitor the impact of COVID-19 on our expected credit losses. Recent Accounting Pronouncements ASU 2018-14 In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans ( ASU 2018-14 ), which removes and modifies certain existing disclosure requirements and adds new disclosure requirements related to employer sponsored defined benefit pension or other postretirement plans. ASU 2018-14 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect that ASU 2018-14 will have on our disclosures. ASU 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ( ASU 2019-12 ), which (i) simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods, and (ii) reduces the complexity in certain areas of existing tax guidance, including the recognition of deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. Although we are currently evaluating the effect that ASU 2019-12 will have on our consolidated financial statements, we do not expect it will have a material impact. ASU 2020-04 In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ( ASU 2020-04 ), which provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates, such as the London Inter-Bank Offered Rate ( LIBOR ), which regulators in the United Kingdom ( U.K. ) have announced will be phased out by the end of 2021. The expedients and exceptions provided by ASU 2020-04 are for the application of U.S. GAAP to contracts, hedging relationships and other transactions affected by the rate reform, and will not be available after December 31, 2022, other than for certain hedging relationships entered into before December 31, 2022. We do not currently expect that the phase out of LIBOR will have a material impact on our consolidated financial statements. |
Trade Receivables | Trade Receivables Our trade receivables are reported net of an allowance for credit losses. The allowance is established using our best estimates of current expected credit losses based upon, among other things, actual credit loss experience over the prior 12-month period, recent collection trends, prevailing and anticipated economic conditions and specific customer credit risk. Receivables outstanding greater than 30 days are considered past due and we generally write-off receivables after they become past due for 365 days, with the exception of certain amounts due from a single government. Concentration of credit risk with respect to trade receivables is limited due to the large number of customers and their dispersion across many different countries, with the exception of certain amounts due from a single government. |
Accounting Changes and Recent_2
Accounting Changes and Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | Changes in the allowance for credit losses are set forth below: January 1, Provision for expected losses Write-offs Foreign currency translation adjustments and other March 31, in millions C&W $ 60.6 $ 10.4 $ (6.4 ) $ 7.7 $ 72.3 VTR/Cabletica 16.0 4.0 (2.2 ) (1.7 ) 16.1 Liberty Puerto Rico 10.7 1.3 (1.7 ) 0.5 10.8 Total $ 87.3 $ 15.7 $ (10.3 ) $ 6.5 $ 99.2 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | Changes in the allowance for credit losses are set forth below: January 1, Provision for expected losses Write-offs Foreign currency translation adjustments and other March 31, in millions C&W $ 60.6 $ 10.4 $ (6.4 ) $ 7.7 $ 72.3 VTR/Cabletica 16.0 4.0 (2.2 ) (1.7 ) 16.1 Liberty Puerto Rico 10.7 1.3 (1.7 ) 0.5 10.8 Total $ 87.3 $ 15.7 $ (10.3 ) $ 6.5 $ 99.2 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | A summary of the purchase price and opening balance sheet of UTS at the effective March 31, 2019 acquisition date is presented in the following table. The opening balance sheet presented below reflects our final purchase price allocation (in millions): Cash $ 2.7 Trade receivables 19.0 Other current assets 6.7 Property and equipment 158.4 Goodwill (a) 17.1 Intangible assets subject to amortization 24.0 Other assets 18.2 Accounts payable (27.9 ) Other accrued and current liabilities (31.9 ) Other long-term liabilities (18.8 ) Noncontrolling interest (b) (11.6 ) Total purchase price (c) (d) $ 155.9 (a) The goodwill recognized in connection with the UTS Acquisition is primarily attributable to (i) the ability to take advantage of UTS ’s existing broadband communications and mobile networks to gain immediate access to potential customers, and (ii) synergies that are expected to be achieved through the integration of UTS with C&W ’s existing business in Curacao. (b) Amount represents the estimated aggregate fair value of the noncontrolling interest in UTS as of March 31, 2019 . (c) Excludes $3 million of direct acquisition costs incurred during 2019 and 2018. Direct acquisition costs are included in impairment, restructuring and other operating items, net, in our condensed consolidated statements of operations. (d) Pursuant to the purchase agreement, which permits certain post-closing working capital adjustments, the UTS Acquisition purchase price was reduced by $6 million during the first quarter of 2020. This amount was recorded as a receivable in other current assets in our condensed consolidated balance sheet as of March 31, 2020 and was received subsequent to March 31, 2020. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of our derivative instrument assets and liabilities | The following table provides details of the fair values of our derivative instrument assets and liabilities: March 31, 2020 December 31, 2019 Current (a) Long-term (a) Total Current (a) Long-term (a) Total in millions Assets: Cross-currency and interest rate derivative contracts (b) $ 20.4 $ 277.5 $ 297.9 $ 23.4 $ 126.9 $ 150.3 Foreign currency forward contracts 14.1 — 14.1 9.8 — 9.8 Total $ 34.5 $ 277.5 $ 312.0 $ 33.2 $ 126.9 $ 160.1 Liabilities: Cross-currency and interest rate derivative contracts (b) $ 69.0 $ 215.3 $ 284.3 $ 34.9 $ 99.6 $ 134.5 Foreign currency forward contracts — — — 0.5 — 0.5 Total $ 69.0 $ 215.3 $ 284.3 $ 35.4 $ 99.6 $ 135.0 (a) Our current derivative assets, current derivative liabilities, long-term derivative assets and long-term derivative liabilities are included in other current assets, net, other accrued and current liabilities, other assets, net, and other long-term liabilities, respectively, in our condensed consolidated balance sheets. (b) We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 9 ). The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in net gains of $33 million and $2 million during the three months ended March 31, 2020 and 2019 , respectively. The gain during the 2020 period is primarily due to increased credit risk stemming from market reaction to the COVID-19 outbreak . These amounts are included in realized and unrealized gains (losses) on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 6 . |
Schedule of realized and unrealized gains (losses) on derivative instruments, net | The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows: Three months ended March 31, 2020 2019 in millions Cross-currency and interest rate derivative contracts $ 9.3 $ (70.0 ) Foreign currency forward contracts and other (a) 8.1 1.0 Total $ 17.4 $ (69.0 ) (a) The amount for the 2020 period includes $2 million of amortization of the premiums associated with our Weather Derivative contracts (the Weather Derivatives ), which we entered into during the second quarter of 2019. |
Schedule of classification of the net cash inflows (outflows) of our derivative instruments | The following table sets forth the classification of the net cash inflows of our derivative instruments: Three months ended March 31, 2020 2019 in millions Operating activities $ 4.0 $ 12.0 Investing activities 2.8 1.6 Financing activities (4.3 ) (0.5 ) Total $ 2.5 $ 13.1 |
Schedule of derivative instruments | The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our basis swap contracts at March 31, 2020 : Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W $ 1,510.0 0.8 Liberty Puerto Rico $ 1,000.0 0.8 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, 2020 : Borrowing group Notional amount due from counterparty Weighted average remaining life in millions in years C&W (a) $ 2,425.0 5.9 VTR Finance $ 165.0 2.9 Liberty Puerto Rico $ 1,000.0 6.3 Cabletica $ 53.5 3.3 (a) Includes forward-starting derivative instruments. The following table sets forth the total notional amounts and the related weighted average remaining contractual lives of our cross-currency swap contracts at March 31, 2020 : 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 6.8 $ 56.3 COP 180,000.0 6.3 VTR Finance $ 1,260.0 CLP 854,020.0 2.3 |
Long-lived Assets (Tables)
Long-lived Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the carrying amount of our goodwill are set forth below: January 1, Acquisitions and related adjustments Foreign currency translation adjustments March 31, in millions C&W $ 4,110.8 $ (20.0 ) $ (33.1 ) $ 4,057.7 VTR/Cabletica 517.9 — (45.0 ) 472.9 Liberty Puerto Rico 277.7 — — 277.7 Total $ 4,906.4 $ (20.0 ) $ (78.1 ) $ 4,808.3 |
Schedule of property and equipment and the related accumulated depreciation | The details of our property and equipment and the related accumulated depreciation are set forth below: March 31, December 31, in millions Distribution systems $ 4,205.0 $ 4,299.6 Customer premises equipment ( CPE ) 1,727.4 1,763.8 Support equipment, buildings and land 1,492.1 1,530.9 7,424.5 7,594.3 Accumulated depreciation (3,261.0 ) (3,293.2 ) Total $ 4,163.5 $ 4,301.1 |
Schedule of intangible assets subject to amortization | The details of our intangible assets subject to amortization are set forth below: March 31, December 31, in millions Gross carrying amount: Customer relationships $ 1,481.8 $ 1,482.9 Licenses and other 169.4 170.1 Total gross carrying amount 1,651.2 1,653.0 Accumulated amortization: Customer relationships (689.3 ) (645.5 ) Licenses and other (41.5 ) (38.3 ) Total accumulated amortization (730.8 ) (683.8 ) Net carrying amount $ 920.4 $ 969.2 |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt and Lease Obligation [Abstract] | |
Schedule of debt | The U.S. dollar equivalents of the components of our debt are as follows: March 31, 2020 Estimated fair value (c) Principal amount Weighted Unused borrowing capacity (b) Borrowing currency US $ equivalent March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 in millions Convertible Notes (d) 2.00 % $ — $ — $ 327.0 $ 430.1 $ 402.5 $ 402.5 C&W Notes 6.74 % — — 1,987.3 2,270.9 2,270.0 2,120.0 C&W Credit Facilities 4.23 % $ 426.3 426.3 2,054.7 2,017.1 2,193.3 2,006.1 VTR Finance Senior Notes 6.88 % — — 1,150.6 1,290.9 1,260.0 1,260.0 VTR Credit Facilities 5.16 % (e) 145.7 273.7 229.7 295.8 231.4 LPR Senior Secured Notes 6.75 % — — 1,197.4 1,278.3 1,200.0 1,200.0 LPR Credit Facilities 5.90 % $ 62.5 62.5 979.7 1,012.1 1,062.5 1,000.0 Cabletica Credit Facilities 8.67 % (f) 15.0 114.6 123.8 123.5 124.8 Vendor financing (g) 4.05 % — — 167.7 167.7 167.7 167.7 Total debt before premiums, discounts and deferred financing costs 5.76 % $ 649.5 $ 8,252.7 $ 8,820.6 $ 8,975.3 $ 8,512.5 The following table provides a reconciliation of total debt before premiums, discounts and deferred financing costs to total debt and finance lease obligations: March 31, 2020 December 31, 2019 in millions Total debt before premiums, discounts and deferred financing costs $ 8,975.3 $ 8,512.5 Premiums, discounts and deferred financing costs, net (148.3 ) (146.1 ) Total carrying amount of debt 8,827.0 8,366.4 Finance lease obligations 2.9 3.6 Total debt and finance lease obligations 8,829.9 8,370.0 Less: Current maturities of debt and finance lease obligations (281.2 ) (180.2 ) Long-term debt and finance lease obligations $ 8,548.7 $ 8,189.8 (a) Represents the weighted average interest rate in effect at March 31, 2020 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. (b) Unused borrowing capacity represents the maximum availability under the applicable facility at March 31, 2020 without regard to covenant compliance calculations or other conditions precedent to borrowing. At March 31, 2020 , the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after completion of the March 31, 2020 compliance reporting requirements. At March 31, 2020 , there were no restrictions on the respective subsidiary’s ability to upstream from this availability to Liberty Latin America or its subsidiaries or other equity holders. (c) The estimated fair values of our debt instruments are determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy). The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors. For additional information regarding fair value hierarchies, see note 6 . (d) The interest rate reflects the stated rate of the Convertible Notes . The effective interest rate of the Convertible Notes is 6.7% , which considers the impact of a discount recorded in connection with the value ascribed to the instrument’s conversion option. (e) The VTR Credit Facilities comprise certain CLP term loans and U.S. dollar and CLP revolving credit facilities, including unused borrowing capacity. (f) The Cabletica Credit Facilities comprise certain Costa Rican colón and U.S. dollar term loans and a U.S. dollar revolving credit facility. (g) Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our operating expenses and property and equipment additions. These obligations are generally due within one year and include value-added taxes ( VAT ) that were paid on our behalf by the vendor. Our operating expenses include $33 million and $31 million for the three months ended March 31, 2020 and 2019 , respectively, that were financed by an intermediary and are reflected on the borrowing date as a hypothetical cash outflow within net cash provided by operating activities and a hypothetical cash inflow within net cash provided by financing activities in our condensed consolidated statements of cash flows. Repayments of vendor financing obligations are included in payments of principal amounts of debt and finance lease obligations in our condensed consolidated statements of cash flows. |
Schedule of maturities of debt | Maturities of our debt as of March 31, 2020 are presented below. Amounts presented below represent U.S. dollar equivalents based on March 31, 2020 exchange rates: C&W VTR Finance Liberty Puerto Rico Cabletica Liberty Latin America Consolidated in millions Years ending December 31: 2020 (remainder of year) $ 75.8 $ 71.3 $ — $ — $ 0.2 $ 147.3 2021 148.0 7.9 — — 1.9 157.8 2022 16.3 82.5 — — 0.3 99.1 2023 150.3 121.3 — 123.5 0.1 395.2 2024 85.8 1,352.0 — — 402.5 1,840.3 2025 3.3 — 62.5 — — 65.8 Thereafter 4,069.8 — 2,200.0 — — 6,269.8 Total debt maturities 4,549.3 1,635.0 2,262.5 123.5 405.0 8,975.3 Premiums, discounts and deferred financing costs, net (31.6 ) (16.8 ) (25.9 ) (2.3 ) (71.7 ) (148.3 ) Total debt $ 4,517.7 $ 1,618.2 $ 2,236.6 $ 121.2 $ 333.3 $ 8,827.0 Current portion $ 200.3 $ 79.1 $ — $ — $ 0.3 $ 279.7 Noncurrent portion $ 4,317.4 $ 1,539.1 $ 2,236.6 $ 121.2 $ 333.0 $ 8,547.3 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Operating lease expense and operating cash flows | The following table provides details of our operating lease expense: Three months ended March 31, 2020 2019 in millions Operating lease expense: Operating lease cost $ 11.8 $ 10.7 Short-term lease cost 2.8 2.1 Total operating lease expense $ 14.6 $ 12.8 The following table provides certain other details of our operating leases at March 31, 2020 : For the three months ended March 31, 2020 (in millions): Operating cash outflows from operating leases $ 10.1 Right-of-use assets obtained in exchange for new operating lease liabilities (a) $ 19.7 As of March 31, 2020 (in millions): Operating lease right-of-use assets (b) $ 161.1 Operating lease liabilities: Current (b) $ 31.6 Noncurrent (b) 121.9 Total operating lease liabilities $ 153.5 Weighted-average remaining lease term 6.6 years Weighted-average discount rate 6.3 % (a) Represents non-cash transactions associated with operating leases entered into during the three months ended March 31, 2020 . (b) Our operating lease right-of-use assets are included in other assets, net, and our current and noncurrent operating lease liabilities are included in other accrued and current liabilities and other long-term liabilities, respectively, in our condensed consolidated balance sheets. |
Maturities of operating lease liabilities | Maturities of our operating lease liabilities on an undiscounted basis as of March 31, 2020 are presented below along with the current and noncurrent operating lease liabilities on a discounted basis. Such amounts represent U.S. dollar equivalents (in millions) based on March 31, 2020 exchange rates. Years ending December 31: 2020 (remainder of year) $ 30.5 2021 34.4 2022 28.7 2023 22.8 2024 19.1 2025 13.1 Thereafter 42.5 Total operating lease liabilities on an undiscounted basis 191.1 Amount representing interest (37.6 ) Present value of operating lease liabilities $ 153.5 |
Restructuring Liabilities (Tabl
Restructuring Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of changes in restructuring liabilities | A summary of changes in our restructuring liability is set forth in the table below: Employee severance and termination Contract termination and other Total in millions Restructuring liability as of January 1, 2020 $ 19.0 $ 13.3 $ 32.3 Restructuring charges 5.6 1.9 7.5 UTS liabilities at acquisition date (a) 2.1 — 2.1 Cash paid (5.0 ) (3.4 ) (8.4 ) Foreign currency translation adjustments (3.7 ) (1.5 ) (5.2 ) Restructuring liability as of March 31, 2020 $ 18.0 $ 10.3 $ 28.3 Current portion $ 15.4 $ 8.5 $ 23.9 Noncurrent portion 2.6 1.8 4.4 Total $ 18.0 $ 10.3 $ 28.3 (a) Represents an adjustment related to the completion of our purchase price accounting for the UTS Acquisition , as further discussed in note 4 . |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of stock-based compensation | The following table summarizes our share-based compensation expense: Three months ended March 31, 2020 2019 in millions Included in: Other operating expense $ 0.4 $ 0.2 SG&A expense 23.4 14.5 Total (a) $ 23.8 $ 14.7 (a) The 2020 amount includes estimated bonus-related expenses for the 2020 year that will be paid in the form of equity. Accordingly, such expenses have been included in share-based compensation expense effective January 1, 2020 and are being accounted for using the liability-based method. |
Schedule of SARs | The following tables summarize the share-based incentive awards related to Liberty Latin America Class A and Class C common shares held by our employees and our board of directors as of March 31, 2020 : Number of Weighted average exercise price Weighted average remaining contractual term Share-based incentive award type in years Stock appreciation rights ( SARs ): Class A common shares: Outstanding 5,476,823 $ 17.50 4.1 Exercisable 1,647,576 $ 23.70 4.3 Class C common shares: Outstanding 11,004,749 $ 17.54 4.1 Exercisable 3,346,678 $ 23.85 4.2 |
Schedule of RSUs | Number of Weighted average remaining contractual term Share-based incentive award type in years Restricted stock units ( RSUs ) outstanding: Class A common shares 536,747 2.6 Class C common shares 1,073,142 2.6 Performance-based restricted stock units ( PSUs ) outstanding: Class A common shares 678,714 1.0 Class C common shares 1,357,440 1.0 |
Schedule of PSUs | Number of Weighted average remaining contractual term Share-based incentive award type in years Restricted stock units ( RSUs ) outstanding: Class A common shares 536,747 2.6 Class C common shares 1,073,142 2.6 Performance-based restricted stock units ( PSUs ) outstanding: Class A common shares 678,714 1.0 Class C common shares 1,357,440 1.0 |
Loss per Share (Tables)
Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Basic earnings (loss) per share ( EPS ) is computed by dividing net loss attributable to Liberty Latin America shareholders by the weighted average number of Class A, Class B and Class C common shares of Liberty Latin America (collectively, Liberty Latin America Shares ) outstanding during the periods presented, as further described below. Diluted EPS presents the dilutive effect, if any, on a per share basis of potential shares as if they had been exercised, vested or converted at the beginning of the periods presented. The details of our net loss attributable to Liberty Latin America shareholders are set forth below: Three months ended March 31, 2020 2019 in millions Net loss $ (184.6 ) $ (41.2 ) Net loss (earnings) attributable to noncontrolling interests 3.9 (0.5 ) Net loss attributable to Liberty Latin America shareholders $ (180.7 ) $ (41.7 ) |
Schedule of weighted average shares outstanding | The details of our weighted average shares outstanding are set forth below: Three months ended March 31, 2020 2019 Weighted average shares outstanding - basic and dilutive 182,079,436 181,036,790 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of commitments | The following table sets forth the U.S. dollar equivalents of such commitments as of March 31, 2020 : Payments due during: Remainder of 2020 2021 2022 2023 2024 2025 Thereafter Total in millions Programming commitments $ 98.7 $ 106.3 $ 74.3 $ 43.6 $ 35.4 $ 0.3 $ — $ 358.6 Network and connectivity commitments 55.6 35.6 6.0 5.3 4.6 2.5 9.0 118.6 Purchase commitments 160.8 19.4 7.4 0.4 — — — 188.0 Other commitments 13.3 2.3 1.9 1.6 1.6 1.6 9.3 31.6 Total (a) $ 328.4 $ 163.6 $ 89.6 $ 50.9 $ 41.6 $ 4.4 $ 18.3 $ 696.8 (a) The commitments included in this table do not reflect any liabilities that are included in our March 31, 2020 condensed consolidated balance sheet. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Revenue and Adjusted OIBDA by segment | The amounts presented below represent 100% of the revenue and Adjusted OIBDA of each of our reportable segments and our corporate operations. As we have the ability to control Cabletica and certain subsidiaries of C&W that are not wholly-owned, we include 100% of the revenue and expenses of these entities in our condensed consolidated statements of operations despite the fact that third parties own significant interests in these entities. The noncontrolling owners’ interests in the operating results of (i) certain subsidiaries of C&W and (ii) Cabletica are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations. Revenue Three months ended March 31, 2020 2019 in millions C&W (a) $ 588.6 $ 569.8 VTR/Cabletica 240.1 276.5 Liberty Puerto Rico 104.6 98.6 Intersegment eliminations (2.3 ) (2.2 ) Total $ 931.0 $ 942.7 (a) The amount presented for 2019 excludes the pre-acquisition revenue of UTS , which was acquired effective March 31, 2019 . Adjusted OIBDA Three months ended March 31, 2020 2019 in millions C&W (a) $ 232.8 $ 222.5 VTR/Cabletica 93.4 106.9 Liberty Puerto Rico 50.5 47.9 Corporate (12.8 ) (11.5 ) Total $ 363.9 $ 365.8 (a) The amount presented for 2019 excludes the pre-acquisition Adjusted OIBDA of UTS , which was acquired effective March 31, 2019 . |
Reconciliation of total Adjusted OIBDA to earnings (loss) before income taxes | The following table provides a reconciliation of total Adjusted OIBDA to operating income and to loss before income taxes: Three months ended March 31, 2020 2019 in millions Total Adjusted OIBDA $ 363.9 $ 365.8 Share-based compensation expense (23.8 ) (14.7 ) Depreciation and amortization (213.5 ) (217.3 ) Impairment, restructuring and other operating items, net (18.8 ) (20.5 ) Operating income 107.8 113.3 Interest expense (143.3 ) (115.7 ) Realized and unrealized gains (losses) on derivative instruments, net 17.4 (69.0 ) Foreign currency transaction gains (losses), net (164.3 ) 32.2 Losses on debt modification and extinguishment (3.4 ) — Other income, net 6.8 2.4 Loss before income taxes $ (179.0 ) $ (36.8 ) |
Capital expenditures of reportable segments | The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or finance lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our condensed consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing, see note 8 . Three months ended March 31, 2020 2019 in millions C&W (a) $ 70.5 $ 63.6 VTR/Cabletica 44.9 54.1 Liberty Puerto Rico 13.3 19.8 Corporate 4.2 1.6 Total property and equipment additions 132.9 139.1 Assets acquired under capital-related vendor financing arrangements (23.6 ) (10.9 ) Assets acquired under finance leases — (0.1 ) Changes in current liabilities related to capital expenditures 39.9 31.5 Total capital expenditures $ 149.2 $ 159.6 (a) The amount presented for 2019 excludes the pre-acquisition property and equipment additions of UTS , which was acquired effective March 31, 2019 . |
Revenue by major category | Our revenue by major category for our reportable segments is set forth in the tables below. Three months ended March 31, 2020 C&W VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (a) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (b): Video $ 44.9 $ 95.0 $ 35.3 $ — $ 175.2 Broadband internet 71.0 94.4 45.5 — 210.9 Fixed-line telephony 24.3 20.3 5.9 — 50.5 Total subscription revenue 140.2 209.7 86.7 — 436.6 Non-subscription revenue (c) 16.9 6.0 4.6 — 27.5 Total residential fixed revenue 157.1 215.7 91.3 — 464.1 Residential mobile revenue: Service revenue (b) 130.9 14.6 — — 145.5 Interconnect, equipment sales and other (d) 17.6 2.0 — — 19.6 Total residential mobile revenue 148.5 16.6 — — 165.1 Total residential revenue 305.6 232.3 91.3 — 629.2 B2B revenue: Service revenue (e) 213.4 7.8 13.3 (0.3 ) 234.2 Subsea network revenue (f) 69.6 — — (2.0 ) 67.6 Total B2B revenue 283.0 7.8 13.3 (2.3 ) 301.8 Total $ 588.6 $ 240.1 $ 104.6 $ (2.3 ) $ 931.0 (a) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica . (b) Residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively. (c) Residential fixed non-subscription revenue primarily includes interconnect and advertising revenue. (d) The total amount includes $10 million of revenue from sales of mobile handsets and other devices. (e) B2B service revenue primarily includes broadband internet, video, fixed-line telephony, mobile and managed services (including equipment installation contracts) offered to small (including small or home office), medium and large enterprises and, on a wholesale basis, other telecommunication operators. The total amount also includes $3 million of revenue from sales of mobile handsets and other devices. (f) B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. Three months ended March 31, 2019 C&W (a) VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations (b) Total in millions Residential revenue: Residential fixed revenue: Subscription revenue (c): Video $ 43.9 $ 108.7 $ 35.0 $ — $ 187.6 Broadband internet 60.2 104.8 41.8 — 206.8 Fixed-line telephony 24.3 27.5 5.7 — 57.5 Total subscription revenue 128.4 241.0 82.5 — 451.9 Non-subscription revenue (d) 15.0 8.9 5.3 — 29.2 Total residential fixed revenue 143.4 249.9 87.8 — 481.1 Residential mobile revenue: Service revenue (c) 135.0 15.7 — — 150.7 Interconnect, equipment sales and other (e) 19.0 3.4 — — 22.4 Total residential mobile revenue 154.0 19.1 — — 173.1 Total residential revenue 297.4 269.0 87.8 — 654.2 B2B revenue: Service revenue (f) 210.9 7.5 10.8 (0.6 ) 228.6 Subsea network revenue (g) 61.5 — — (1.6 ) 59.9 Total B2B revenue 272.4 7.5 10.8 (2.2 ) 288.5 Total $ 569.8 $ 276.5 $ 98.6 $ (2.2 ) $ 942.7 (a) The amounts presented exclude the pre-acquisition revenue of UTS , which was acquired effective March 31, 2019 . (b) Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica . (c) Residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively. (d) Residential fixed non-subscription revenue primarily includes interconnect and advertising revenue. (e) The total amounts include $7 million of revenue from sales of mobile handsets and other devices. (f) B2B service revenue primarily includes broadband internet, video, fixed-line telephony, mobile and managed services (including equipment installation contracts) offered to small (including small or home office), medium and large enterprises and, on a wholesale basis, other telecommunication operators. These amounts also include $4 million of revenue from sales of mobile handsets and other devices. (g) B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time. |
Revenue by geographic segments | The revenue from third-party customers for our geographic markets is set forth in the table below. Except as otherwise noted, the amounts presented include revenue from residential and B2B operations. Three months ended March 31, 2020 2019 in millions Panama $ 137.7 $ 140.3 Networks & LatAm (a) 95.0 88.7 Jamaica 96.1 93.0 The Bahamas 49.3 53.6 Barbados 36.7 37.5 Curacao (b) 39.6 7.0 Trinidad and Tobago 40.8 39.6 Chile 206.4 244.0 Costa Rica 33.7 32.5 Puerto Rico 104.3 98.0 Other (c) 91.4 108.5 Total $ 931.0 $ 942.7 (a) The amounts represent managed services and wholesale revenue from various jurisdictions across Latin America and the Caribbean, primarily related to the sale and lease of telecommunications capacity on C&W ’s subsea and terrestrial fiber optic cable networks. (b) The amount presented for 2019 excludes the pre-acquisition revenue of UTS , which was acquired effective March 31, 2019 . (c) The amounts relate to a number of countries in which C&W has less significant operations, all of which are located in Latin America and the Caribbean. |
Basis of Presentation (Details)
Basis of Presentation (Details) | Mar. 31, 2020marketcountry |
Residential and Business-to-Business Services | |
Basis of Presentation [Line Items] | |
Number of countries in which entity provides services | country | 20 |
C&W | Wholesale Communication Services | |
Basis of Presentation [Line Items] | |
Number of markets (over) | market | 40 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Changes in Allowance for Credit Loss (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
January 1, 2020 | $ 87.3 |
Provision for expected losses | 15.7 |
Write-offs | (10.3) |
Foreign currency translation adjustments and other | 6.5 |
March 31, 2020 | 99.2 |
C&W | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
January 1, 2020 | 60.6 |
Provision for expected losses | 10.4 |
Write-offs | (6.4) |
Foreign currency translation adjustments and other | 7.7 |
March 31, 2020 | 72.3 |
VTR/Cabletica | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
January 1, 2020 | 16 |
Provision for expected losses | 4 |
Write-offs | (2.2) |
Foreign currency translation adjustments and other | (1.7) |
March 31, 2020 | 16.1 |
Liberty Puerto Rico | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
January 1, 2020 | 10.7 |
Provision for expected losses | 1.3 |
Write-offs | (1.7) |
Foreign currency translation adjustments and other | 0.5 |
March 31, 2020 | $ 10.8 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Oct. 09, 2019 | Mar. 31, 2019 | Mar. 31, 2020 |
AT&T Acquisition | |||
Business Acquisition [Line Items] | |||
Enterprise value | $ 1,950 | ||
UTS | |||
Business Acquisition [Line Items] | |||
Enterprise value | $ 189 | ||
Post-closing working capital adjustments | $ 6 | ||
Equity interest | 87.50% | 87.50% | |
Cash purchase price | $ 162 | ||
Equity interest, including subsequent acquisition | 100.00% | ||
Liabilities incurred | 170 | ||
Direct acquisition costs | $ 3 |
Acquisitions - Schedules (Detai
Acquisitions - Schedules (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,808.3 | $ 4,906.4 | |
UTS | |||
Business Acquisition [Line Items] | |||
Cash | $ 2.7 | ||
Trade receivables | 19 | ||
Other current assets | 6.7 | ||
Property and equipment | 158.4 | ||
Goodwill | 17.1 | ||
Intangible assets subject to amortization | 24 | ||
Other assets | 18.2 | ||
Accounts payable | (27.9) | ||
Other accrued and current liabilities | (31.9) | ||
Other long-term liabilities | (18.8) | ||
Noncontrolling interests | (11.6) | ||
Total purchase price | $ 155.9 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Current | $ 34.5 | $ 33.2 |
Long-term | 277.5 | 126.9 |
Total | 312 | 160.1 |
Liabilities: | ||
Current | 69 | 35.4 |
Long-term | 215.3 | 99.6 |
Total | 284.3 | 135 |
Cross-currency and interest rate derivative contracts | ||
Assets: | ||
Current | 20.4 | 23.4 |
Long-term | 277.5 | 126.9 |
Total | 297.9 | 150.3 |
Liabilities: | ||
Current | 69 | 34.9 |
Long-term | 215.3 | 99.6 |
Total | 284.3 | 134.5 |
Foreign currency forward contracts | ||
Assets: | ||
Current | 14.1 | 9.8 |
Long-term | 0 | 0 |
Total | 14.1 | 9.8 |
Liabilities: | ||
Current | 0 | 0.5 |
Long-term | 0 | 0 |
Total | $ 0 | $ 0.5 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Millions, $ in Billions | 3 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020CLP ($) | Mar. 31, 2020USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Exposure to counterparty credit risk | $ 297 | |||
Cross currency interest rate contract - credit risk valuation adjustments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on credit risk derivatives | $ 33 | $ 2 | ||
Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional amount of derivative | $ 64 | $ 90 | ||
Weighted average remaining life (in years) | 3 months 18 days |
Derivative Instruments - Realiz
Derivative Instruments - Realized and Unrealized Gains (Losses) on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net | $ 17.4 | $ (69) |
Amortization of premiums on derivative instruments | 2 | |
Cross-currency and interest rate derivative contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net | 9.3 | (70) |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net | $ 8.1 | $ 1 |
Derivative Instruments - Net Ca
Derivative Instruments - Net Cash Received (Paid) Related to Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Operating activities | $ 4 | $ 12 |
Investing activities | 2.8 | 1.6 |
Financing activities | (4.3) | (0.5) |
Total | $ 2.5 | $ 13.1 |
Derivative Instruments - Cross-
Derivative Instruments - Cross-currency Derivative Contracts (Details) - 3 months ended Mar. 31, 2020 $ in Millions, $ in Millions, $ in Millions, $ in Millions | JMD ($) | CLP ($) | COP ($) | USD ($) |
Cross-Currency Swap 1 | C&W | ||||
Derivative [Line Items] | ||||
Weighted average remaining life (in years) | 6 years 9 months 18 days | |||
Cross-Currency Swap 2 | C&W | ||||
Derivative [Line Items] | ||||
Weighted average remaining life (in years) | 6 years 3 months 18 days | |||
Cross-Currency Swap 3 | VTR Finance | ||||
Derivative [Line Items] | ||||
Weighted average remaining life (in years) | 2 years 3 months 18 days | |||
Notional amount due from counterparty | Cross-Currency Swap 1 | C&W | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 108.3 | |||
Notional amount due from counterparty | Cross-Currency Swap 2 | C&W | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | 56.3 | |||
Notional amount due from counterparty | Cross-Currency Swap 3 | VTR Finance | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 1,260 | |||
Notional amount due to counterparty | Cross-Currency Swap 1 | C&W | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 13,817.5 | |||
Notional amount due to counterparty | Cross-Currency Swap 2 | C&W | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 180,000 | |||
Notional amount due to counterparty | Cross-Currency Swap 3 | VTR Finance | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 854,020 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Derivative Contracts (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Interest Rate Swap | C&W | |
Derivative [Line Items] | |
Notional amount of derivative | $ 2,425 |
Weighted average remaining life (in years) | 5 years 10 months 24 days |
Interest Rate Swap | VTR Finance | |
Derivative [Line Items] | |
Notional amount of derivative | $ 165 |
Weighted average remaining life (in years) | 2 years 10 months 24 days |
Interest Rate Swap | Liberty Puerto Rico | |
Derivative [Line Items] | |
Notional amount of derivative | $ 1,000 |
Weighted average remaining life (in years) | 6 years 3 months 18 days |
Interest Rate Swap | Cabletica | |
Derivative [Line Items] | |
Notional amount of derivative | $ 53.5 |
Weighted average remaining life (in years) | 3 years 3 months 18 days |
Basis Swap | C&W | |
Derivative [Line Items] | |
Notional amount of derivative | $ 1,510 |
Weighted average remaining life (in years) | 24 days |
Basis Swap | Liberty Puerto Rico | |
Derivative [Line Items] | |
Notional amount of derivative | $ 1,000 |
Weighted average remaining life (in years) | 24 days |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Level 1 | Reported Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments measured at fair value | $ 35 | $ 37 | |
Level 3 | Derivative Financial Instruments, Liabilities | Sable Currency Swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative instrument liability | 20 | $ 30 | |
Net gains (losses) included in earnings | $ 10 | $ 1 | |
UTS | Fair Value, Nonrecurring | Customer relationships | Discount rate | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Business combination input | 0.135 |
Insurance Recoveries (Details)
Insurance Recoveries (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Business Interruption Loss [Line Items] | |||
Insurance recoveries | $ 67 | ||
Recovery on damaged or destroyed property and equipment | $ 0 | 33.9 | |
C&W | |||
Business Interruption Loss [Line Items] | |||
Insurance recoveries | 37 | ||
Liberty Puerto Rico | |||
Business Interruption Loss [Line Items] | |||
Insurance recoveries | 27 | ||
Corporate operations | |||
Business Interruption Loss [Line Items] | |||
Insurance recoveries | 3 | ||
Hurricanes | |||
Business Interruption Loss [Line Items] | |||
Recovery on damaged or destroyed property and equipment | 33 | ||
Recovery on damaged or destroyed property and equipment | $ 34 | ||
Hurricanes Maria and Irma | |||
Business Interruption Loss [Line Items] | |||
Insurance recoveries | $ 109 | ||
Self-insurance paid | 30 | ||
Hurricane Matthew | |||
Business Interruption Loss [Line Items] | |||
Insurance recoveries | 12 | ||
Self-insurance paid | $ 15 |
Long-lived Assets - Goodwill (D
Long-lived Assets - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
January 1, 2020 | $ 4,906.4 |
Acquisitions and related adjustments | (20) |
Foreign currency translation adjustments | (78.1) |
March 31, 2020 | 4,808.3 |
Accumulated goodwill impairments | 1,348 |
C&W | |
Goodwill [Roll Forward] | |
January 1, 2020 | 4,110.8 |
Acquisitions and related adjustments | (20) |
Foreign currency translation adjustments | (33.1) |
March 31, 2020 | 4,057.7 |
VTR/Cabletica | |
Goodwill [Roll Forward] | |
January 1, 2020 | 517.9 |
Acquisitions and related adjustments | 0 |
Foreign currency translation adjustments | (45) |
March 31, 2020 | 472.9 |
Liberty Puerto Rico | |
Goodwill [Roll Forward] | |
January 1, 2020 | 277.7 |
Acquisitions and related adjustments | 0 |
Foreign currency translation adjustments | 0 |
March 31, 2020 | $ 277.7 |
Long-lived Assets - Property an
Long-lived Assets - Property and Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 7,424.5 | $ 7,594.3 | |
Accumulated depreciation | (3,261) | (3,293.2) | |
Total | 4,163.5 | 4,301.1 | |
Non-cash increases related to vendor financing arrangements | 23.6 | $ 10.9 | |
Distribution systems | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4,205 | 4,299.6 | |
Customer premises equipment (CPE) | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,727.4 | 1,763.8 | |
Support equipment, buildings and land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,492.1 | $ 1,530.9 |
Long-lived Assets - Intangible
Long-lived Assets - Intangible Assets Subject to Amortization, Net (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Gross carrying amount | $ 1,651.2 | $ 1,653 |
Accumulated amortization | (730.8) | (683.8) |
Total | 920.4 | 969.2 |
Customer relationships | ||
Gross carrying amount | 1,481.8 | 1,482.9 |
Accumulated amortization | (689.3) | (645.5) |
Licenses and other | ||
Gross carrying amount | 169.4 | 170.1 |
Accumulated amortization | $ (41.5) | $ (38.3) |
Debt and Finance Lease Obliga_3
Debt and Finance Lease Obligations - Components of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.76% | |
Unused borrowing capacity | $ 649.5 | |
Estimated fair value | 8,252.7 | $ 8,820.6 |
Total debt before premiums, discounts, and deferred financing costs | 8,975.3 | 8,512.5 |
Premiums, discounts and deferred financing costs, net | (148.3) | (146.1) |
Total carrying amount of debt | 8,827 | 8,366.4 |
Finance lease obligations | 2.9 | 3.6 |
Total debt and finance lease obligations | 8,829.9 | 8,370 |
Less: Current maturities of debt and finance lease obligations | (281.2) | (180.2) |
Long-term debt and finance lease obligations | $ 8,548.7 | 8,189.8 |
Convertible Debt | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.00% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 327 | 430.1 |
Total debt before premiums, discounts, and deferred financing costs | $ 402.5 | 402.5 |
Senior Notes | C&W Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.74% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 1,987.3 | 2,270.9 |
Total debt before premiums, discounts, and deferred financing costs | $ 2,270 | 2,120 |
Line of Credit | C&W Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.23% | |
Unused borrowing capacity | $ 426.3 | |
Estimated fair value | 2,054.7 | 2,017.1 |
Total debt before premiums, discounts, and deferred financing costs | $ 2,193.3 | 2,006.1 |
Line of Credit | VTR Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.16% | |
Unused borrowing capacity | $ 145.7 | |
Estimated fair value | 273.7 | 229.7 |
Total debt before premiums, discounts, and deferred financing costs | $ 295.8 | 231.4 |
Line of Credit | LPR Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.75% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 1,197.4 | 1,278.3 |
Total debt before premiums, discounts, and deferred financing costs | $ 1,200 | 1,200 |
Line of Credit | LPR Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.90% | |
Unused borrowing capacity | $ 62.5 | |
Estimated fair value | 979.7 | 1,012.1 |
Total debt before premiums, discounts, and deferred financing costs | $ 1,062.5 | 1,000 |
Line of Credit | Cabletica Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 8.67% | |
Unused borrowing capacity | $ 15 | |
Estimated fair value | 114.6 | 123.8 |
Total debt before premiums, discounts, and deferred financing costs | $ 123.5 | 124.8 |
Medium-term Notes | VTR Finance Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.88% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 1,150.6 | 1,290.9 |
Total debt before premiums, discounts, and deferred financing costs | $ 1,260 | 1,260 |
Unsecured Debt | Vendor financing | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.05% | |
Unused borrowing capacity | $ 0 | |
Estimated fair value | 167.7 | 167.7 |
Total debt before premiums, discounts, and deferred financing costs | $ 167.7 | $ 167.7 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations - Components of Debt Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Convertible Debt | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 6.70% | |
Unsecured Debt | Vendor Financing Obligations | ||
Debt Instrument [Line Items] | ||
General term of vendor financing arrangements for amounts due | 1 year | |
Operating expenses financed by intermediary | $ 33 | $ 31 |
Debt and Finance Lease Obliga_5
Debt and Finance Lease Obligations - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Outstanding principal amount | $ 8,975,300,000 | $ 8,512,500,000 | ||
Gain (loss) on extinguishment of debt | (3,400,000) | $ 0 | ||
Medium-term Notes | C&W Term Loan B-5 Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.25% | |||
Face amount of debt | $ 1,510,000,000 | |||
Medium-term Notes | VTR RCF – B | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal amount | 92,000,000 | |||
Senior Notes | 2027 LPR Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 150,000,000 | |||
Senior Notes | 2027 C&W Senior Notes Add-on | ||||
Debt Instrument [Line Items] | ||||
Original issue price | 106.00% | |||
Line of Credit | C&W Term Loan B-4 Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal amount | 1,640,000,000 | |||
Gain (loss) on extinguishment of debt | (3,000,000) | |||
Line of Credit | C&W Revolving Credit Facility, Extended Maturity | ||||
Debt Instrument [Line Items] | ||||
Unused borrowing capacity | $ 575,000,000 | |||
Line of Credit | C&W Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal amount | 313,000,000 | |||
Unused borrowing capacity | 625,000,000 | |||
Line of Credit | 2019 LPR Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal amount | $ 63,000,000 |
Debt and Finance Lease Obliga_6
Debt and Finance Lease Obligations - Maturities of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt maturities | $ 8,975.3 | $ 8,512.5 |
Premiums, discounts and deferred financing costs, net | (148.3) | (146.1) |
Total carrying amount of debt | 8,827 | $ 8,366.4 |
C&W | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 75.8 | |
2021 | 148 | |
2022 | 16.3 | |
2023 | 150.3 | |
2024 | 85.8 | |
2025 | 3.3 | |
Thereafter | 4,069.8 | |
Total debt maturities | 4,549.3 | |
Premiums, discounts and deferred financing costs, net | (31.6) | |
Total carrying amount of debt | 4,517.7 | |
Current portion | 200.3 | |
Noncurrent portion | 4,317.4 | |
VTR Finance | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 71.3 | |
2021 | 7.9 | |
2022 | 82.5 | |
2023 | 121.3 | |
2024 | 1,352 | |
2025 | 0 | |
Thereafter | 0 | |
Total debt maturities | 1,635 | |
Premiums, discounts and deferred financing costs, net | (16.8) | |
Total carrying amount of debt | 1,618.2 | |
Current portion | 79.1 | |
Noncurrent portion | 1,539.1 | |
Liberty Puerto Rico | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 62.5 | |
Thereafter | 2,200 | |
Total debt maturities | 2,262.5 | |
Premiums, discounts and deferred financing costs, net | (25.9) | |
Total carrying amount of debt | 2,236.6 | |
Current portion | 0 | |
Noncurrent portion | 2,236.6 | |
Cabletica | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 123.5 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total debt maturities | 123.5 | |
Premiums, discounts and deferred financing costs, net | (2.3) | |
Total carrying amount of debt | 121.2 | |
Current portion | 0 | |
Noncurrent portion | 121.2 | |
Liberty Latin America | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 0.2 | |
2021 | 1.9 | |
2022 | 0.3 | |
2023 | 0.1 | |
2024 | 402.5 | |
2025 | 0 | |
Thereafter | 0 | |
Total debt maturities | 405 | |
Premiums, discounts and deferred financing costs, net | (71.7) | |
Total carrying amount of debt | 333.3 | |
Current portion | 0.3 | |
Noncurrent portion | 333 | |
Consolidated | ||
Debt Instrument [Line Items] | ||
2020 (remainder of year) | 147.3 | |
2021 | 157.8 | |
2022 | 99.1 | |
2023 | 395.2 | |
2024 | 1,840.3 | |
2025 | 65.8 | |
Thereafter | 6,269.8 | |
Total debt maturities | 8,975.3 | |
Premiums, discounts and deferred financing costs, net | (148.3) | |
Total carrying amount of debt | 8,827 | |
Current portion | 279.7 | |
Noncurrent portion | $ 8,547.3 |
Leases - Lease Expense and Cash
Leases - Lease Expense and Cash Flows from Operating Lease (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 11.8 | $ 10.7 |
Short-term lease cost | 2.8 | 2.1 |
Total operating lease expense | 14.6 | $ 12.8 |
Operating cash flows from operating leases | 10.1 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 19.7 | |
Operating lease right-of-use assets | 161.1 | |
Current | 31.6 | |
Noncurrent | 121.9 | |
Present value of operating lease liabilities | $ 153.5 | |
Weighted-average remaining lease term (in years) | 6 years 7 months 6 days | |
Weighted-average discount rate | 6.30% |
Leases - Lease Maturities of Op
Leases - Lease Maturities of Operating Lease Liabilities (Details) $ in Millions | Mar. 31, 2020USD ($) |
Operating leases | |
2020 (remainder of year) | $ 30.5 |
2021 | 34.4 |
2022 | 28.7 |
2023 | 22.8 |
2024 | 19.1 |
2025 | 13.1 |
Thereafter | 42.5 |
Total operating lease liabilities on an undiscounted basis | 191.1 |
Amount representing interest | (37.6) |
Present value of operating lease liabilities | $ 153.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 5.6 | $ 4.4 |
Effective income tax rate | 3.10% | 12.00% |
Unfulfilled Performance Oblig_2
Unfulfilled Performance Obligations (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 430 |
Unfulfilled performance obligations, term | P7Y |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 16, 2020 | |
Class of Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 100,000,000 | |
Stock repurchased program, remaining authorized repurchase amount | $ 98,000,000 | |
Class A | ||
Class of Stock [Line Items] | ||
Number of shares repurchased (shares) | 55,338 | |
Class C | ||
Class of Stock [Line Items] | ||
Number of shares repurchased (shares) | 114,975 |
Restructuring Liabilities (Deta
Restructuring Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring liability as of January 1, 2020 | $ 32.3 | |
Restructuring charges | 7.5 | |
UTS liabilities at acquisition date | 2.1 | |
Cash paid | (8.4) | |
Foreign currency translation adjustments | (5.2) | |
Restructuring liability as of March 31, 2020 | 28.3 | |
Current portion | $ 23.9 | |
Noncurrent portion | 4.4 | |
Total | 28.3 | 28.3 |
Employee severance and termination | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability as of January 1, 2020 | 19 | |
Restructuring charges | 5.6 | |
UTS liabilities at acquisition date | (2.1) | |
Cash paid | (5) | |
Foreign currency translation adjustments | (3.7) | |
Restructuring liability as of March 31, 2020 | 18 | |
Current portion | 15.4 | |
Noncurrent portion | 2.6 | |
Total | 18 | 18 |
Contract termination and other | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability as of January 1, 2020 | 13.3 | |
Restructuring charges | 1.9 | |
UTS liabilities at acquisition date | 0 | |
Cash paid | (3.4) | |
Foreign currency translation adjustments | (1.5) | |
Restructuring liability as of March 31, 2020 | 10.3 | |
Current portion | 8.5 | |
Noncurrent portion | 1.8 | |
Total | 10.3 | $ 10.3 |
C&W | Employee Severance and Termination, Pension | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 2 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 23.8 | $ 14.7 |
Other operating expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 0.4 | 0.2 |
SG&A expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 23.4 | $ 14.5 |
Share-based Compensation - SARs
Share-based Compensation - SARs (Details) - SARs | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Class A | |
Number of shares | |
Outstanding (in shares) | shares | 5,476,823 |
Exercisable (in shares) | shares | 1,647,576 |
Weighted average exercise price | |
Outstanding (in dollars per share) | $ 17.50 |
Exercisable (in dollars per share) | $ 23.70 |
Weighted average remaining contractual term, outstanding | 4 years 1 month 6 days |
Weighted average remaining contractual term, Exercisable | 4 years 3 months 18 days |
Granted (in shares) | shares | 2,072,276 |
Granted, weighted average exercise price (in dollars per share) | $ 10.42 |
Granted, weighted average grant-date fair value (in dollars per share) | $ 7.27 |
Class C | |
Number of shares | |
Outstanding (in shares) | shares | 11,004,749 |
Exercisable (in shares) | shares | 3,346,678 |
Weighted average exercise price | |
Outstanding (in dollars per share) | $ 17.54 |
Exercisable (in dollars per share) | $ 23.85 |
Weighted average remaining contractual term, outstanding | 4 years 1 month 6 days |
Weighted average remaining contractual term, Exercisable | 4 years 2 months 12 days |
Granted (in shares) | shares | 4,144,552 |
Granted, weighted average exercise price (in dollars per share) | $ 10.48 |
Granted, weighted average grant-date fair value (in dollars per share) | $ 4.49 |
Share-based Compensation - RSUs
Share-based Compensation - RSUs and PSUs (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
RSUs | Class A | |
Number of shares | |
Outstanding (in shares) | 536,747 |
Weighted average remaining contractual term, in years | |
Weighted average remaining contractual term | 2 years 7 months 6 days |
Granted (in shares) | 301,527 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 10.42 |
RSUs | Class C | |
Number of shares | |
Outstanding (in shares) | 1,073,142 |
Weighted average remaining contractual term, in years | |
Weighted average remaining contractual term | 2 years 7 months 6 days |
Granted (in shares) | 603,054 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 10.48 |
PSUs | Class A | |
Number of shares | |
Outstanding (in shares) | 678,714 |
Weighted average remaining contractual term, in years | |
Weighted average remaining contractual term | 1 year |
PSUs | Class C | |
Number of shares | |
Outstanding (in shares) | 1,357,440 |
Weighted average remaining contractual term, in years | |
Weighted average remaining contractual term | 1 year |
Loss per Share (Details)
Loss per Share (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (184.6) | $ (41.2) |
Net loss (earnings) attributable to noncontrolling interests | 3.9 | (0.5) |
Net loss attributable to Liberty Latin America shareholders | $ (180.7) | $ (41.7) |
Weighted average shares outstanding: | ||
Weighted average shares outstanding - basic and dilutive (in shares) | 182,079,436 | 181,036,790 |
Convertible Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded (in shares) | 18,100,000 | 0 |
Options, SARs and RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded (in shares) | 22,100,000 | 13,100,000 |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded (in shares) | 2,000,000 | 1,600,000 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) $ in Millions | Mar. 31, 2020USD ($) |
Purchase commitments | |
Remainder of 2020 | $ 160.8 |
2021 | 19.4 |
2022 | 7.4 |
2023 | 0.4 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total | 188 |
Other commitments | |
Remainder of 2020 | 13.3 |
2021 | 2.3 |
2022 | 1.9 |
2023 | 1.6 |
2024 | 1.6 |
2025 | 1.6 |
Thereafter | 9.3 |
Total | 31.6 |
Total | |
Remainder of 2020 | 328.4 |
2021 | 163.6 |
2022 | 89.6 |
2023 | 50.9 |
2024 | 41.6 |
2025 | 4.4 |
Thereafter | 18.3 |
Total | 696.8 |
Programming commitments | |
Programming and network commitments | |
Remainder of 2020 | 98.7 |
2021 | 106.3 |
2022 | 74.3 |
2023 | 43.6 |
2024 | 35.4 |
2025 | 0.3 |
Thereafter | 0 |
Total | 358.6 |
Network and connectivity commitments | |
Programming and network commitments | |
Remainder of 2020 | 55.6 |
2021 | 35.6 |
2022 | 6 |
2023 | 5.3 |
2024 | 4.6 |
2025 | 2.5 |
Thereafter | 9 |
Total | $ 118.6 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Apr. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Programming and copyright costs | $ 101 | $ 111 | |
Indemnification agreement | |||
Loss Contingencies [Line Items] | |||
Indemnifications provided (up to) | $ 300 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020marketcountry | |
Segment Reporting Information [Line Items] | |
Percentage of minority interest revenues and adjusted OBIDA included in net earnings attributable to noncontrolling interest | 100.00% |
Percentage of minority interest revenues and expenses included in net earnings attributable to noncontrolling interest | 100.00% |
Residential and Business-to-Business Services | |
Segment Reporting Information [Line Items] | |
Number of countries in which entity provides services | country | 20 |
C&W | Wholesale Communication Services | |
Segment Reporting Information [Line Items] | |
Number of markets (over) | market | 40 |
Segment Reporting - Performance
Segment Reporting - Performance Measures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 931 | $ 942.7 |
Adjusted OIBDA | 363.9 | 365.8 |
Operating Segments | C&W | ||
Segment Reporting Information [Line Items] | ||
Revenue | 588.6 | 569.8 |
Adjusted OIBDA | 232.8 | 222.5 |
Operating Segments | VTR/Cabletica | ||
Segment Reporting Information [Line Items] | ||
Revenue | 240.1 | 276.5 |
Adjusted OIBDA | 93.4 | 106.9 |
Operating Segments | Liberty Puerto Rico | ||
Segment Reporting Information [Line Items] | ||
Revenue | 104.6 | 98.6 |
Adjusted OIBDA | 50.5 | 47.9 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Adjusted OIBDA | (12.8) | (11.5) |
Intersegment eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ (2.3) | $ (2.2) |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Cash Flow to Earnings from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | ||
Total Adjusted OIBDA | $ 363.9 | $ 365.8 |
Share-based compensation expense | (23.8) | (14.7) |
Depreciation and amortization | (213.5) | (217.3) |
Impairment, restructuring and other operating items, net | (18.8) | (20.5) |
Operating income | 107.8 | 113.3 |
Interest expense | (143.3) | (115.7) |
Realized and unrealized gains (losses) on derivative instruments, net | 17.4 | (69) |
Foreign currency transaction gains (losses), net | (164.3) | 32.2 |
Losses on debt modification and extinguishment | (3.4) | 0 |
Other income, net | 6.8 | 2.4 |
Loss before income taxes | $ (179) | $ (36.8) |
Segment Reporting - Property an
Segment Reporting - Property and Equipment Additions of our Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | $ 132.9 | $ 139.1 |
Assets acquired under capital-related vendor financing arrangements | (23.6) | (10.9) |
Assets acquired under finance leases | 0 | (0.1) |
Changes in current liabilities related to capital expenditures | 39.9 | 31.5 |
Total capital expenditures | 149.2 | 159.6 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | 4.2 | 1.6 |
C&W | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | 70.5 | 63.6 |
VTR/Cabletica | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | 44.9 | 54.1 |
Liberty Puerto Rico | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment additions | $ 13.3 | $ 19.8 |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Major Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Principal Transaction Revenue [Line Items] | ||
Revenue | $ 931 | $ 942.7 |
Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 629.2 | 654.2 |
Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 464.1 | 481.1 |
Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 436.6 | 451.9 |
Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 175.2 | 187.6 |
Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 210.9 | 206.8 |
Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 50.5 | 57.5 |
Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 27.5 | 29.2 |
Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 165.1 | 173.1 |
Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 145.5 | 150.7 |
Interconnect, equipment sales and other | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 19.6 | 22.4 |
Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 301.8 | 288.5 |
Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 234.2 | 228.6 |
Subsea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 67.6 | 59.9 |
Mobile Handset | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 10 | 7 |
B2B Mobile Handset and Other Devices | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 3 | 4 |
Operating Segments | C&W | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 588.6 | 569.8 |
Operating Segments | C&W | Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 305.6 | 297.4 |
Operating Segments | C&W | Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 157.1 | 143.4 |
Operating Segments | C&W | Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 140.2 | 128.4 |
Operating Segments | C&W | Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 44.9 | 43.9 |
Operating Segments | C&W | Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 71 | 60.2 |
Operating Segments | C&W | Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 24.3 | 24.3 |
Operating Segments | C&W | Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 16.9 | 15 |
Operating Segments | C&W | Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 148.5 | 154 |
Operating Segments | C&W | Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 130.9 | 135 |
Operating Segments | C&W | Interconnect, equipment sales and other | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 17.6 | 19 |
Operating Segments | C&W | Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 283 | 272.4 |
Operating Segments | C&W | Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 213.4 | 210.9 |
Operating Segments | C&W | Subsea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 69.6 | 61.5 |
Operating Segments | VTR/Cabletica | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 240.1 | 276.5 |
Operating Segments | VTR/Cabletica | Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 232.3 | 269 |
Operating Segments | VTR/Cabletica | Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 215.7 | 249.9 |
Operating Segments | VTR/Cabletica | Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 209.7 | 241 |
Operating Segments | VTR/Cabletica | Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 95 | 108.7 |
Operating Segments | VTR/Cabletica | Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 94.4 | 104.8 |
Operating Segments | VTR/Cabletica | Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 20.3 | 27.5 |
Operating Segments | VTR/Cabletica | Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 6 | 8.9 |
Operating Segments | VTR/Cabletica | Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 16.6 | 19.1 |
Operating Segments | VTR/Cabletica | Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 14.6 | 15.7 |
Operating Segments | VTR/Cabletica | Interconnect, equipment sales and other | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 2 | 3.4 |
Operating Segments | VTR/Cabletica | Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 7.8 | 7.5 |
Operating Segments | VTR/Cabletica | Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 7.8 | 7.5 |
Operating Segments | VTR/Cabletica | Subsea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | Liberty Puerto Rico | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 104.6 | 98.6 |
Operating Segments | Liberty Puerto Rico | Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 91.3 | 87.8 |
Operating Segments | Liberty Puerto Rico | Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 91.3 | 87.8 |
Operating Segments | Liberty Puerto Rico | Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 86.7 | 82.5 |
Operating Segments | Liberty Puerto Rico | Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 35.3 | 35 |
Operating Segments | Liberty Puerto Rico | Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 45.5 | 41.8 |
Operating Segments | Liberty Puerto Rico | Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 5.9 | 5.7 |
Operating Segments | Liberty Puerto Rico | Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 4.6 | 5.3 |
Operating Segments | Liberty Puerto Rico | Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Interconnect, equipment sales and other | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Operating Segments | Liberty Puerto Rico | Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 13.3 | 10.8 |
Operating Segments | Liberty Puerto Rico | Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 13.3 | 10.8 |
Operating Segments | Liberty Puerto Rico | Subsea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | (2.3) | (2.2) |
Intersegment eliminations | Total residential revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Total residential fixed revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Total subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Video | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Broadband internet | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Fixed-line telephony | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Non-subscription revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Total residential mobile revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Interconnect, equipment sales and other | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | 0 | 0 |
Intersegment eliminations | Total B2B revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | (2.3) | (2.2) |
Intersegment eliminations | Service revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | (0.3) | (0.6) |
Intersegment eliminations | Subsea network revenue | ||
Principal Transaction Revenue [Line Items] | ||
Revenue | $ (2) | $ (1.6) |
Segment Reporting - Geographic
Segment Reporting - Geographic Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 931 | $ 942.7 |
Operating Segments | Panama | ||
Segment Reporting Information [Line Items] | ||
Revenue | 137.7 | 140.3 |
Operating Segments | Networks & LatAm | ||
Segment Reporting Information [Line Items] | ||
Revenue | 95 | 88.7 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Revenue | 96.1 | 93 |
Operating Segments | The Bahamas | ||
Segment Reporting Information [Line Items] | ||
Revenue | 49.3 | 53.6 |
Operating Segments | Barbados | ||
Segment Reporting Information [Line Items] | ||
Revenue | 36.7 | 37.5 |
Operating Segments | Curacao | ||
Segment Reporting Information [Line Items] | ||
Revenue | 39.6 | 7 |
Operating Segments | Trinidad and Tobago | ||
Segment Reporting Information [Line Items] | ||
Revenue | 40.8 | 39.6 |
Operating Segments | Chile | ||
Segment Reporting Information [Line Items] | ||
Revenue | 206.4 | 244 |
Operating Segments | Costa Rica | ||
Segment Reporting Information [Line Items] | ||
Revenue | 33.7 | 32.5 |
Operating Segments | Puerto Rico | ||
Segment Reporting Information [Line Items] | ||
Revenue | 104.3 | 98 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 91.4 | $ 108.5 |
Uncategorized Items - lla10-qq1
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,979,900,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 0 |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 200,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 870,300,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (200,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (1,447,300,000) |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (14,800,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (200,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,109,600,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 4,569,900,000 |
Common Class B [Member] | Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 0 |
Common Class C [Member] | Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,300,000 |
Common Class A [Member] | Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 500,000 |