Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
Entity File Number | 000-05890 |
Entity Registrant Name | GCI, LLC |
Entity Central Index Key | 0000075679 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 92-0072737 |
Entity Address, Address Line One | 12300 Liberty Boulevard |
Entity Address, City or Town | Englewood, |
Entity Address, State or Province | CO |
Entity Address, Postal Zip Code | 80112 |
City Area Code | 720 |
Local Phone Number | 875-5900 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 126,627 | $ 170,741 |
Trade and other receivables, net of allowance for doubtful accounts of $18,474 and $7,555, respectively | 175,257 | 182,600 |
Other current assets | 42,026 | 40,100 |
Total current assets | 343,910 | 393,441 |
Investments in equity securities (note 4) | 2,122,818 | 1,533,517 |
Investments accounted for using the equity method (note 6) | 169,795 | 177,030 |
Property and equipment, net | 1,127,338 | 1,184,606 |
Intangible assets not subject to amortization | ||
Goodwill | 844,182 | 844,182 |
Intangible assets not subject to amortization | 1,357,379 | 1,355,682 |
Intangible assets subject to amortization, net (note 6) | 410,827 | 436,006 |
Other assets, net | 198,193 | 71,514 |
Total assets | 10,178,562 | 8,226,169 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 88,559 | 99,424 |
Deferred revenue | 30,360 | 31,743 |
Current portion of debt, net of deferred financing costs (note 7) | 901,856 | 900,759 |
Other current liabilities | 63,645 | 44,799 |
Total current liabilities | 1,084,420 | 1,076,725 |
Long-term debt, net (note 8) | 1,510,344 | 1,522,939 |
Loans from GCI Liberty | 103,240 | 107,682 |
Obligations under finance leases and tower obligations, excluding current portion (note 7) | 100,732 | 122,245 |
Long-term deferred revenue | 60,917 | 65,954 |
Deferred income tax liabilities | 1,271,767 | 792,064 |
Derivative instrument | 138,701 | 0 |
Other liabilities | 145,217 | 50,543 |
Total liabilities | 4,415,338 | 3,738,152 |
Member's equity: | ||
Member's investment | 3,495,633 | 3,478,744 |
Retained earnings | 2,258,081 | 999,706 |
Total member's equity | 5,753,714 | 4,478,450 |
Non-controlling interests | 9,510 | 9,567 |
Total equity | 5,763,224 | 4,488,017 |
Commitments and contingencies | ||
Total liabilities and equity | 10,178,562 | 8,226,169 |
Cable certificates | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 305,000 | 305,000 |
Wireless licenses | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 191,697 | 190,000 |
Other | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 16,500 | 16,500 |
Liberty Broadband | ||
Current assets: | ||
Investments accounted for using the equity method (note 6) | $ 4,448,302 | $ 3,074,373 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 18,474 | $ 7,555 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 217,566 | $ 233,490 | $ 435,302 | $ 294,694 |
Operating costs and expenses: | ||||
Operating expense (exclusive of depreciation and amortization shown separately below) | 68,432 | 69,294 | 137,325 | 89,113 |
Selling, general and administrative, including stock-based compensation (note 10) | 94,489 | 98,010 | 209,616 | 130,543 |
Insurance proceeds and restructuring, net | 4,218 | 0 | 1,718 | 0 |
Depreciation and amortization expense | 65,891 | 64,388 | 133,569 | 80,409 |
Operating costs and expenses | 233,030 | 231,692 | 482,228 | 300,065 |
Operating income (loss) | (15,464) | 1,798 | (46,926) | (5,371) |
Other income (expense): | ||||
Interest expense (including amortization of deferred loan fees) | (36,284) | (32,378) | (69,832) | (40,051) |
Share of earnings (losses) of affiliates, net (note 5) | (1,068) | 10,350 | (4,364) | 7,858 |
Realized and unrealized gains (losses) on financial instruments, net (note 3) | 744,170 | (459,207) | 1,848,605 | (559,405) |
Other, net | 9,754 | (2,631) | 10,545 | (2,387) |
Other income (expense) | 716,572 | (483,866) | 1,784,954 | (593,985) |
Earnings (loss) before income taxes | 701,108 | (482,068) | 1,738,028 | (599,356) |
Income tax (expense) benefit | (192,958) | 170,456 | (479,705) | 96,195 |
Net earnings (loss) | 508,150 | (311,612) | 1,258,323 | (503,161) |
Less net earnings (loss) attributable to the non-controlling interests | 0 | (154) | (57) | (193) |
Net earnings (loss) attributable to member | $ 508,150 | $ (311,458) | $ 1,258,380 | $ (502,968) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ 508,150 | $ 1,258,323 | $ (503,161) |
Adjustments to reconcile net earnings (loss) to net cash from operating activities: | |||
Depreciation and amortization | 65,891 | 133,569 | 80,409 |
Stock-based compensation expense | 12,385 | 13,165 | |
Share of (earnings) losses of affiliates, net | 1,068 | 4,364 | (7,858) |
Realized and unrealized (gains) losses on financial instruments, net | (744,170) | (1,848,605) | 559,405 |
(Gain) loss on lease modification | (7,500) | (7,543) | 0 |
Deferred income tax expense (benefit) | 479,697 | (95,882) | |
Other, net | 1,165 | 3,377 | |
Change in operating assets and liabilities: | |||
Current and other assets | 24,597 | (38,681) | |
Payables and other liabilities | (28,642) | (22,622) | |
Net cash provided (used) by operating activities | 29,310 | (11,848) | |
Cash flows from investing activities: | |||
Cash and restricted cash from acquisition of GCI Holdings | 0 | 147,958 | |
Capital expended for property and equipment | (70,866) | (40,303) | |
Proceeds from derivative instrument | 105,866 | 0 | |
Settlement of derivative instrument | (105,866) | 0 | |
Other, net | 4,540 | 0 | |
Net cash provided (used) by investing activities | (66,326) | 107,655 | |
Cash flows from financing activities: | |||
Borrowings from GCI Liberty | 3,000 | 0 | |
Borrowings of debt | 325,000 | 1,000,000 | |
Repayment of debt, finance lease, and tower obligations | (332,071) | (9,971) | |
Distribution to non-controlling interests | 0 | (3,273) | |
Other financing activities, net | (9,172) | (2,576) | |
Net cash provided (used) by financing activities | (7,124) | (543,160) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (44,140) | (447,353) | |
Cash, cash equivalents and restricted cash at beginning of period | 171,516 | 574,148 | |
Cash, cash equivalents and restricted cash at end of period | 127,376 | 127,376 | 126,795 |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Total cash and cash equivalents and restricted cash at end of period | $ 127,376 | 171,516 | 574,148 |
Member | |||
Cash flows from financing activities: | |||
Contributions | 6,119 | ||
Distributions | (447,950) | ||
Qurate Retail | |||
Cash flows from financing activities: | |||
Distributions | $ 0 | $ (1,079,390) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Member's Investment | Member's InvestmentQurate Retail | Retained earnings | Non-controlling interest in equity of subsidiaries |
Balance at beginning of period at Dec. 31, 2017 | $ 4,224,036 | $ 2,305,440 | $ 1,914,963 | $ 3,633 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings (loss) | (503,161) | (502,968) | (193) | ||
Stock-based compensation | 11,885 | 11,885 | |||
Contribution of taxes in connection with HoldCo Split-Off | 1,147,186 | 1,147,186 | |||
Distribution to Qurate Retail | (1,082,018) | $ (1,082,018) | |||
Contributions from (distributions to) member, net | (447,950) | (447,950) | |||
Allocated consideration in connection with the Transactions | 1,448,669 | 1,441,669 | 7,000 | ||
Distribution to non-controlling interests | (3,273) | (3,273) | |||
Other | 44 | (210) | 254 | ||
Balance at end of period at Jun. 30, 2018 | 4,795,418 | 3,376,002 | 1,412,249 | 7,167 | |
Balance at beginning of period at Mar. 31, 2018 | 5,099,698 | 3,368,931 | 1,723,445 | 7,322 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings (loss) | (311,612) | (311,458) | (154) | ||
Stock-based compensation | 7,011 | 7,011 | |||
Contribution of taxes in connection with HoldCo Split-Off | 0 | ||||
Distribution to Qurate Retail | 278 | $ 278 | |||
Distribution to non-controlling interests | (1) | (1) | |||
Other | 44 | (218) | 262 | ||
Balance at end of period at Jun. 30, 2018 | 4,795,418 | 3,376,002 | 1,412,249 | 7,167 | |
Balance at beginning of period at Dec. 31, 2018 | 4,488,017 | 3,478,744 | 999,706 | 9,567 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings (loss) | 1,258,323 | 1,258,380 | (57) | ||
Stock-based compensation | 13,764 | 13,764 | |||
Contributions from (distributions to) member, net | 6,541 | 6,541 | |||
Other | (3,421) | (3,416) | (5) | ||
Balance at end of period at Jun. 30, 2019 | 5,763,224 | 3,495,633 | 2,258,081 | 9,510 | |
Balance at beginning of period at Mar. 31, 2019 | 5,247,535 | 3,488,093 | 1,749,932 | 9,510 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings (loss) | 508,150 | 508,150 | |||
Stock-based compensation | 7,029 | 7,029 | |||
Contributions from (distributions to) member, net | 2,013 | 2,013 | |||
Other | (1,503) | (1,502) | (1) | ||
Balance at end of period at Jun. 30, 2019 | $ 5,763,224 | $ 3,495,633 | $ 2,258,081 | $ 9,510 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation GCI, LLC is a wholly-owned subsidiary of GCI Liberty, Inc. On April 4, 2017, Liberty Interactive Corporation, now known as Qurate Retail, Inc. ("Qurate Retail"), entered into an Agreement and Plan of Reorganization (as amended, the "reorganization agreement" and the transactions contemplated thereby, the "Transactions") with GCI, LLC's parent company, General Communication, Inc. ("GCI"), an Alaska corporation and indirect parent company of GCI Holdings, LLC ("GCI Holdings"), and Liberty Interactive LLC, a Delaware limited liability company and a direct wholly‑owned subsidiary of Qurate Retail ("LI LLC"). Pursuant to the reorganization agreement, GCI amended and restated its articles of incorporation (which resulted in GCI being renamed GCI Liberty, Inc. ("GCI Liberty")) and effected a reclassification and auto conversion of its common stock. Following these events, Qurate Retail acquired GCI Liberty on March 9, 2018 through a reorganization in which certain Qurate Retail interests, assets and liabilities attributed to its Ventures Group (following the reattribution by Qurate Retail of certain assets and liabilities from its Ventures Group to its QVC Group), were contributed to GCI Liberty in exchange for a controlling interest in GCI Liberty (the "contribution"). Qurate Retail and LI LLC contributed to GCI Liberty their entire equity interests in Liberty Broadband Corporation ("Liberty Broadband"), Charter Communications, Inc. ("Charter"), and LendingTree, Inc. ("LendingTree"), the Evite, Inc. ("Evite") operating business and other assets and liabilities (collectively, "HoldCo"), in exchange for (a) the issuance to LI LLC of a number of shares of GCI Liberty Class A common stock and a number of shares of GCI Liberty Class B common stock equal to the number of outstanding shares of Qurate Retail's Series A Liberty Ventures common stock and Qurate Retail's Series B Liberty Ventures common stock on March 9, 2018, respectively, (b) cash and (c) the assumption of certain liabilities by GCI Liberty. The contribution was treated as a reverse acquisition under the acquisition method of accounting in accordance with generally accepted accounting principles in the United States ("GAAP"). For accounting purposes, HoldCo is considered to have acquired GCI Liberty in the contribution based, among other considerations, upon the fact that in exchange for the contribution of HoldCo, Qurate Retail received a controlling interest in the combined company of GCI Liberty. Following the contribution and acquisition of GCI Liberty, Qurate Retail effected a tax‑free separation of its controlling interest in the combined company, GCI Liberty, to the holders of Qurate Retail's Liberty Ventures common stock in full redemption of all outstanding shares of such stock (the "HoldCo Split‑Off"), in which each outstanding share of Qurate Retail's Series A Liberty Ventures common stock was redeemed for one share of GCI Liberty Class A common stock and each outstanding share of Qurate Retail's Series B Liberty Ventures common stock was redeemed for one share of GCI Liberty Class B common stock. In July 2018, the Internal Revenue Service completed its review of the HoldCo Split-Off and informed Qurate Retail that it agreed with the nontaxable characterization of the transactions. Qurate Retail received an Issue Resolution Agreement from the IRS documenting this conclusion. On May 10, 2018, pursuant to the Agreement and Plan of Merger, dated as of March 22, 2018, GCI Liberty completed its reincorporation into Delaware by merging with its wholly owned Delaware subsidiary, which was the surviving corporation (the “Reincorporation Merger”). References to GCI Liberty prior to May 10, 2018 refer to GCI Liberty, Inc., an Alaska corporation and references to GCI Liberty after May 10, 2018 refer to GCI Liberty, Inc., a Delaware corporation. The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for the periods presented have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. Additionally, certain prior period amounts have been reclassified for comparability with current period presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. These notes to the condensed consolidated financial statements refer to the combination of GCI Holdings, non‑controlling interests in Liberty Broadband, Charter and LendingTree, a controlling interest in Evite, and certain other assets and liabilities as, the "Company", "us", "we" and "our." Although HoldCo was reported as a combined company until the date of the HoldCo Split-Off, these financial statements present all periods as consolidated by the Company. All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. The Company, through its ownership of interests in subsidiaries and other companies, is primarily engaged in providing a full range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska. The Company holds investments that are accounted for using the equity method. The Company does not control the decision making process or business management practices of these affiliates. Accordingly, the Company relies on management of these affiliates to provide it with accurate financial information prepared in accordance with GAAP that the Company uses in the application of the equity method. In addition, the Company relies on audit reports that are provided by the affiliates' independent auditors on the financial statements of such affiliates. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliates that would have a material effect on its condensed consolidated financial statements. Split‑Off from Qurate Retail Following the HoldCo Split‑Off, Qurate Retail and GCI Liberty operate as separate, publicly traded companies, and neither have any stock ownership, beneficial or otherwise, in the other. In connection with the HoldCo Split‑Off, Qurate Retail, Liberty Media Corporation ("Liberty Media") (or its subsidiary) and GCI Liberty entered into certain agreements in order to govern certain of the ongoing relationships among the companies after the HoldCo Split‑Off and to provide for an orderly transition. These agreements include an indemnification agreement, a reorganization agreement, a services agreement, a facilities sharing agreement and a tax sharing agreement. The reorganization agreement provides for, among other things, the principal corporate transactions (including the internal restructuring) required to effect the Transactions and certain conditions to and provisions governing the relationship between GCI Liberty and Qurate Retail (for accounting purposes a related party of GCI Liberty) with respect to and resulting from the Transactions. The tax sharing agreement provides for the allocation and indemnification of tax liabilities and benefits between Qurate Retail and GCI Liberty and other agreements related to tax matters. Pursuant to the services agreement, Liberty Media provides GCI Liberty with general and administrative services including legal, tax, accounting, treasury and investor relations support. Under the facilities sharing agreement, GCI Liberty shares office space with Liberty Media and related amenities at its corporate headquarters. GCI Liberty reimburses Liberty Media for direct, out‑of‑pocket expenses incurred by Liberty Media in providing these services and for costs that will be negotiated semi‑annually. Liberty Media is a related party of GCI Liberty for accounting purposes as a result of the services agreement. Under these agreements, approximately $2.2 million was reimbursable to Liberty Media for both the three months ended June 30, 2019 and 2018, and $4.5 million and $3.9 million was reimbursable to Liberty Media for the six months ended June 30, 2019 and 2018, respectively. Recent Accounting Pronouncements New Accounting Pronouncements Not Yet Adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued new guidance which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance will be effective for the Company in the first quarter of 2020 with early adoption permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition GCI, LLC's parent company, GCI Liberty was acquired on March 9, 2018. The acquisition of our parent company was accounted for as a reverse acquisition. Under this method, HoldCo is the acquirer of our parent company and is also considered the acquirer of GCI, LLC. We have elected to apply pushdown accounting given there was a change-in-control event related to our parent company. We have reflected the new basis of accounting established by our parent company for the individual assets and liabilities that were acquired by HoldCo using the acquisition method of accounting. The acquisition price was $1.4 billion (primarily level 1). The application of the acquisition method resulted in the assignment of purchase price to the GCI, LLC assets acquired and liabilities assumed based on our estimates of their acquisition date fair values (primarily level 3). The assets acquired and liabilities assumed, and as discussed within this note, are those assets and liabilities of GCI, LLC prior to the completion of the acquisition by HoldCo. The determination of the fair values of the acquired assets and liabilities (and the determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. The acquisition price allocation for GCI, LLC is as follows (amounts in thousands): Cash and cash equivalents including restricted cash $ 147,957 Receivables 171,014 Property and equipment 1,211,392 Goodwill 966,044 Intangible assets not subject to amortization 572,500 Intangible assets subject to amortization 468,737 Other assets 83,422 Deferred revenue (92,561 ) Debt, including capital leases (1,632,002 ) Other liabilities (171,151 ) Deferred income tax liabilities (276,683 ) Non-controlling interest (7,000 ) $ 1,441,669 Goodwill is calculated as the excess of the consideration transferred over the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce, value associated with future customers, continued innovation and non-contractual relationships. Amortizable intangible assets of $468.7 million were acquired and are comprised of a tradename with an estimated useful life of approximately 10 years , customer relationships with a weighted average useful life of approximately 16 years and right-to-use assets with a weighted average useful life of 8 years . Approximately $170.0 million of the acquired goodwill will be deductible for income tax purposes. As of June 30, 2019 , the determination of the acquisition date fair value of the acquired assets and assumed liabilities is final. Since the date of the acquisition, included in net earnings (loss) attributable to the GCI, LLC member for the three and six months ended June 30, 2018 is $6.0 million and $4.5 million in earnings related to GCI Holdings, respectively. The unaudited pro forma revenue, and net earnings of GCI, LLC, prepared utilizing the historical financial statements of HoldCo, giving effect to acquisition accounting related adjustments made at the time of acquisition, as if the acquisition discussed above occurred on January 1, 2017, are as follows: Three months ended Six months ended June 30, 2018 amounts in thousands, except per share amounts Revenue $ 224,080 443,552 Net earnings (loss) $ (311,875 ) (511,078 ) Net earnings (loss) attributable to GCI, LLC member $ (311,720 ) (510,768 ) The pro forma results include adjustments directly attributable to the business combination including adjustments related to the amortization of acquired tangible and intangible assets, revenue, interest expense, stock-based compensation, and the exclusion of transaction related costs. These results also include the impact of the Federal Communications Commission's decision to reduce rates paid to us under the Rural Health Care Program and the new revenue standard. The pro forma information is not representative of the Company’s future results of operations nor does it reflect what the Company’s results of operations would have been if the acquisition had occurred previously and the Company consolidated the results of GCI, LLC during the periods presented. |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | Assets and Liabilities Measured at Fair Value For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company does not have any recurring assets or liabilities measured at fair value that would be considered Level 3. The Company’s assets and liabilities measured at fair value are as follows: June 30, 2019 December 31, 2018 Description Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) amounts in thousands Cash equivalents $ 87,448 87,448 — 66,348 66,348 — Equity securities $ 2,117,533 2,117,533 — 1,529,901 1,529,901 — Investment in Liberty Broadband $ 4,448,302 4,448,302 — 3,074,373 3,074,373 — Derivative instrument $ 138,701 — 138,701 20,340 — 20,340 On June 6, 2017, Qurate Retail purchased 450,000 LendingTree shares and executed a 2 ‑year variable forward with respect to 642,850 LendingTree shares. The variable forward was executed at the LendingTree closing price on June 6, 2017 of $170.70 per share and had a floor price of $128.03 per share and a cap price of $211.67 per share. The fair value of the variable forward was derived from a Black‑Scholes‑Merton model using observable market data as the significant inputs. On April 29, 2019, the Company terminated its variable forward and entered into a new 3-year variable forward with respect to 642,850 LendingTree shares. The variable forward was executed at the LendingTree closing price on April 29, 2019 of $376.35 per share and has a floor price of zero and has a cap price of $254.00 per share. The fair value of the variable forward was derived from a Black-Scholes-Merton model using observable market data as the significant inputs. Realized and Unrealized Gains (Losses) on Financial Instruments, net Realized and unrealized gains (losses) on financial instruments, net are comprised of changes in the fair value of the following: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 amounts in thousands Equity securities $ 258,718 (97,478 ) 593,038 (229,040 ) Investment in Liberty Broadband 532,669 (425,538 ) 1,373,928 (402,917 ) Derivative instruments (47,217 ) 63,809 (118,361 ) 72,552 $ 744,170 (459,207 ) 1,848,605 (559,405 ) |
Investments in Equity Securitie
Investments in Equity Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Equity Securities | Investments in Equity Securities Investments in equity securities, the majority of which are carried at fair value, are summarized as follows: June 30, December 31, 2019 2018 amounts in thousands Charter (a) $ 2,117,533 1,526,984 Other investments (b) 5,285 6,533 $ 2,122,818 1,533,517 (a) A portion of the Charter equity securities are considered covered shares and subject to certain contractual restrictions in accordance with the indemnification agreement entered into by GCI Liberty. Pursuant to the indemnification agreement, GCI Liberty has agreed to indemnify LI LLC for certain payments made to a holder of LI LLC 1.75% exchangeable debentures due 2046. (b) The Company has elected the measurement alternative for a portion of these securities. |
Investments in Affiliates Accou
Investments in Affiliates Accounted for Using the Equity Method | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliates Accounted for Using the Equity Method | Investments in Affiliates Accounted for Using the Equity Method Investment in LendingTree The Company has various investments accounted for using the equity method. The following table includes the Company’s carrying amount and percentage ownership of the more significant investments in affiliates at June 30, 2019 and the carrying amount at December 31, 2018 : June 30, 2019 December 31, 2018 Percentage ownership Market value Carrying amount Carrying amount dollars in thousands LendingTree (a) 26.7 % $ 1,446,579 $ 167,703 174,002 Other various NA 2,092 3,028 $ 169,795 177,030 (a) Both the Company's ownership interest in LendingTree and the Company's share of LendingTree's earnings (losses) are reported on a three month lag. The market value disclosed is as of June 30, 2019. The Company’s share of LendingTree’s earnings (losses) was $(1.3) million and $7.7 million for the three months ended June 30, 2019 and 2018 , respectively. The Company's share of LendingTree's earnings (losses) was $(3.4) million and $5.3 million for the six months ended June 30, 2019 and 2018 , respectively. Investment in Liberty Broadband On May 18, 2016, Qurate Retail completed a $2.4 billion investment in Liberty Broadband Series C non-voting shares (for accounting purposes a related party of the Company) in connection with the merger of Charter and Time Warner Cable Inc. ("TWC"). The proceeds of this investment were used by Liberty Broadband to fund, in part, its acquisition of $5 billion of stock in the new public parent company, Charter, of the combined enterprises. Qurate Retail, along with third party investors, all of whom invested on the same terms as Qurate Retail, purchased newly issued shares of Liberty Broadband Series C common stock at a per share price of $56.23 , which was determined based upon the fair value of Liberty Broadband’s net assets on a sum‑of‑the parts basis at the time the investment agreements were executed (May 2015). Qurate Retail, as part of the merger described above, exchanged, in a tax‑free transaction, its shares of TWC common stock for shares of Charter Class A common stock, on a one ‑for‑one basis, and Qurate Retail granted to Liberty Broadband a proxy and a right of first refusal with respect to the shares of Charter Class A common stock held by Qurate Retail following the exchange, which proxy and right of first refusal was assigned to GCI Liberty in connection with the completion of the Transactions. As of June 30, 2019 , the Company has a 23.5% economic ownership interest in Liberty Broadband. Due to overlapping boards of directors and management at GCI Liberty, the Company has been deemed to have significant influence over Liberty Broadband for accounting purposes, even though the Company does not have any voting rights. The Company has elected to apply the fair value option for its investment in Liberty Broadband (Level 1) as it is believed that investors value this investment based on the trading price of Liberty Broadband. The Company recognizes changes in the fair value of its investment in Liberty Broadband in realized and unrealized gains (losses) on financial instruments, net in the accompanying condensed consolidated statements of operations. Summarized financial information for Liberty Broadband is as follows: June 30, December 31, 2019 2018 amounts in thousands Current assets $ 74,315 84,574 Investment in Charter, accounted for using the equity method 12,023,742 12,004,376 Other assets 9,112 9,487 Total assets 12,107,169 12,098,437 Long-term debt 523,549 522,928 Deferred income tax liabilities 964,584 965,829 Other liabilities 31,976 11,062 Equity 10,587,060 10,598,618 Total liabilities and shareholders' equity $ 12,107,169 12,098,437 Three months ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 amounts in thousands Revenue $ 3,747 3,371 7,205 15,162 Operating expenses, net (10,913 ) (8,442 ) (20,572 ) (17,987 ) Operating income (loss) (7,166 ) (5,071 ) (13,367 ) (2,825 ) Share of earnings (losses) of affiliates 45,400 32,911 80,249 42,213 Gain (loss) on dilution of investment in affiliate (16,322 ) (5,205 ) (57,725 ) (31,962 ) Realized and unrealized gains (losses) on financial instruments, net — (2,019 ) — (2,019 ) Other income (expense), net (5,936 ) (5,842 ) (12,056 ) (10,654 ) Income tax benefit (expense) (3,924 ) (4,194 ) 650 757 Net earnings (loss) $ 12,052 10,580 (2,249 ) (4,490 ) |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible Assets Subject to Amortization June 30, 2019 December 31, 2018 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in thousands Customer relationships $ 408,267 (75,292 ) 332,975 408,267 (55,417 ) 352,850 Other amortizable intangibles 128,452 (50,600 ) 77,852 122,759 (39,603 ) 83,156 Total $ 536,719 (125,892 ) 410,827 531,026 (95,020 ) 436,006 Amortization expense for intangible assets with finite useful lives was $15.0 million and $16.4 million for the three months ended June 30, 2019 and 2018 , respectively. Amortization expense for intangible assets with finite useful lives was $31.3 million and $21.6 million for the six months ended June 30, 2019 and 2018 , respectively. Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Remainder of 2019 $ 30,665 2020 $ 52,305 2021 $ 41,924 2022 $ 36,261 2023 $ 33,434 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt is summarized as follows: Outstanding Principal Carrying Value June 30, June 30, December 31, 2019 2019 2018 amounts in thousands Margin Loan Facility $ 900,000 900,000 900,000 Senior notes 775,000 797,840 803,287 Senior credit facility 713,895 713,895 715,124 Wells Fargo note payable 7,319 7,319 7,554 Deferred financing costs — (6,854 ) (2,267 ) Total debt $ 2,396,214 2,412,200 2,423,698 Debt classified as current (included in other current liabilities) (901,856 ) (900,759 ) Total long-term debt $ 1,510,344 1,522,939 Margin Loan On December 29, 2017, Broadband Holdco, LLC ("Broadband Holdco"), a wholly owned subsidiary of, at such time, Qurate Retail, and now the Company, entered into a margin loan agreement with various lender parties consisting of a term loan in an aggregate principal amount of $1 billion (the “Margin Loan”). 42,681,842 shares of Liberty Broadband Series C common stock with a value of $4.4 billion were pledged by Broadband Holdco, LLC as collateral for the loan as of June 30, 2019 . This Margin Loan has a term of two years with an interest rate of LIBOR plus 1.85% and contains an undrawn commitment fee of up to 0.75% per annum. Deferred financing costs incurred on the Margin Loan are reflected in current portion of debt, net in the accompanying condensed consolidated balance sheet. In connection with the completion of the Transactions, Broadband Holdco borrowed the full principal amount of the Margin Loan. A portion of the proceeds of the Margin Loan was used to make a distribution to Qurate Retail of $1.1 billion to be used within one year for the repurchase of QVC Group stock (now the Qurate Retail common stock) or to pay down certain debt at Qurate Retail, and for the payment of fees and other costs and expenses, in each case, pursuant to the terms of the reorganization agreement. The distributed loan proceeds constituted a portion of the cash reattributed to the QVC Group. On October 5, 2018 (the “Closing Date”), Broadband Holdco entered into Amendment No. 1 (the “Amendment”) to the Margin Loan (the “Margin Loan Agreement”). Pursuant to the Amendment, lenders under the Margin Loan have agreed to, among other things, provide commitments (the “Revolving Commitments”) for a new revolving credit facility in an aggregate principal amount of up to $200.0 million (the “Revolving Credit Facility” and, the loans thereunder, the “Revolving Loans”). The Revolving Credit Facility established under the Margin Loan Agreement is in addition to the existing term loan credit facility under the Margin Loan Agreement (the “Term Loan Facility” and, together with Revolving Credit Facility, the “Margin Loan Facility” and the loans thereunder, the “Loans”). After giving effect to the initial borrowing of Revolving Loans and Term Loan Prepayment (as defined below) on the Closing Date, $800.0 million of loans under the Term Loan Facility were outstanding and $200.0 million of Revolving Loans were outstanding. Subsequent to the Closing Date, the Company repaid $100.0 million of the Revolving Credit Facility. The Amendment also amends certain covenants in the Margin Loan to permit, among other things, a designated GCI Liberty subsidiary to enter into a subordinated revolving note with GCI Liberty and certain additional investments. Broadband Holdco is permitted to use the proceeds of the Revolving Loans for any purpose not prohibited under the Margin Loan, including, without limitation, (i) to make dividends and distributions, (ii) for the purchase of margin stock, (iii) to make investments not prohibited under the Margin Loan, (iv) to repay an intercompany loan to GCI Liberty, and/or (v) otherwise for general corporate purposes, including, without limitation, for payment of interest and fees and other costs and expenses. On the Closing Date, Broadband Holdco drew down on the full amount of the commitments under the Revolving Credit Facility and applied all of the proceeds to prepay, on the Closing Date, a portion of the loans outstanding under the Term Loan Facility (the “Term Loan Prepayment”). The Loans will mature on December 29, 2019 (the “maturity date”) and accrue interest at a rate equal to the 3-month LIBOR rate plus a per annum spread of 1.85% , subject to certain conditions and exceptions. Undrawn Revolving Commitments shall be available to Broadband Holdco from the Closing Date to but excluding the earlier of (i) the date that is one month prior to the maturity date and (ii) the date of the termination of such Revolving Commitments pursuant to the terms of the Margin Loan. The obligations under the Revolving Credit Facility, together with the obligations under Term Loan Facility, are secured by first priority liens on the shares of Liberty Broadband owned by Broadband Holdco and certain other cash collateral provided by Broadband Holdco. In addition, the Revolving Credit Facility and the Term Loan Facility are subject to the same affirmative and negative covenants and events of default. Senior Notes On June 6, 2019, GCI, LLC issued $325 million of 6.625% Senior Notes due 2024 at par ("2024 Notes"). The 2024 Notes are unsecured and the net proceeds were used to fund the redemption of $325 million aggregate outstanding principal amount of 6.75% Senior Notes due 2021. Interest on the 2024 Notes and the 6.875% Senior Notes due 2025, which were issued by GCI, Inc., which is now GCI, LLC (collectively, the “Senior Notes”), is payable semi-annually in arrears. The Senior Notes are redeemable at the Company's option, in whole or in part, at a redemption price defined in the respective indentures, and accrued and unpaid interest (if any) to the date of redemption. The Senior Notes are stated net of an aggregate unamortized premium of $22.8 million at June 30, 2019 . Such premium is being amortized to interest expense in the accompanying condensed consolidated statements of operations. As of June 30, 2019, GCI, LLC exceeded the maximum leverage threshold, as measured by the terms of its Senior Notes, and therefore does not have access to any additional funding under the revolving portion of the Senior Credit Facility, as defined below. Senior Credit Facility On December 27, 2018, GCI, LLC, amended and restated the Fifth Amended and Restated Credit Agreement dated as of March 9, 2018 and refinanced the revolving credit facility and term loan A with a new revolving credit facility, leaving the existing Term Loan B in place (the "Senior Credit Facility"). The Senior Credit Facility provides a $240.7 million term loan B ("Term Loan B") and a $550.0 million revolving credit facility. GCI, LLC's Senior Credit Facility Total Leverage Ratio (as defined in the Senior Credit Facility) may not exceed 6.50 to one and the Secured Leverage Ratio (as defined in the Senior Credit Facility) may not exceed 4.00 to one. The revolving credit facility borrowings that are LIBOR loans bear interest at a per annum rate equal to the applicable LIBOR plus a margin that varies between 1.50% and 2.75% depending on the total leverage ratio. The full principal revolving credit facility included in the Senior Credit Facility will mature on December 27, 2023 or August 6, 2021 if the Term Loan B is not refinanced or repaid in full prior to such date. The interest rate for the Term Loan B is LIBOR plus 2.25% . The Term Loan B requires principal payments of 0.25% of the original principal amount on the last day of each calendar quarter with the full amount maturing on February 2, 2022. The terms of the Senior Credit Facility include customary representations and warranties, customary affirmative and negative covenants and customary events of default. At any time after the occurrence of an event of default under the Senior Credit Facility, the lenders may, among other options, declare any amounts outstanding under the Senior Credit Facility immediately due and payable and terminate any commitment to make further loans under the Senior Credit Facility. The obligations under the Senior Credit Facility are secured by a security interest on substantially all of the assets of GCI Holdings and the subsidiary guarantors, as defined in the Senior Credit Facility, and on the stock of GCI Holdings. As of June 30, 2019 , there is $238.9 million outstanding under the Term Loan B, $475.0 million outstanding under the revolving portion of the Senior Credit Facility and $8.1 million in letters of credit under the Senior Credit Facility, which leaves $66.9 million available for borrowing when GCI, LLC meets the maximum leverage threshold, as measured by the terms of its Senior Notes. Wells Fargo Note Payable GCI Holdings issued a note to Wells Fargo that matures on July 15, 2029 and is payable in monthly installments of principal and interest (the "Wells Fargo Note Payable"). The interest rate is variable at one month LIBOR plus 2.25% . The note is subject to similar affirmative and negative covenants as the Senior Credit Facility. The obligations under the note are secured by a security interest and lien on the building purchased with the note. Debt Covenants GCI, LLC is subject to covenants and restrictions under its Senior Notes and Senior Credit Facility. GCI, LLC is in compliance with all debt maintenance covenants as of June 30, 2019 . Fair Value of Debt The fair value of the Senior Notes was $808.8 million at June 30, 2019 . Due to the variable rate nature of the Margin Loan, Senior Credit Facility and Wells Fargo Note Payable, the Company believes that the carrying amount approximates fair value at June 30, 2019 . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases In February 2016 and subsequently, the FASB issued new guidance which revises the accounting for leases (“ASC 842”). Under the new guidance, entities that lease assets are required to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases regardless of whether they are classified as finance or operating leases. In addition, new disclosures are required to meet the objective of enabling users of the financial statements to better understand the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted this guidance on January 1, 2019 and elected the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption. Results for reporting periods beginning after January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for those periods. The Company elected certain of the available transition practical expedients, including those that permit it to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. The Company did not elect the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. The most significant impact of the new guidance was the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases. In addition, the Company elected the practical expedient to account for the lease and non-lease components as a single lease component and will not recognize right-of-use assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date. The Company recognized $105 million of ROU assets, $28 million of short-term operating lease liabilities and $77 million of long-term operating lease liabilities in the accompanying condensed consolidated balance sheet upon the adoption of the new standard. In 2016 and 2017, GCI Holdings sold certain tower sites and entered into a master lease agreement in which it leased back space on those tower sites. At the time, GCI Holdings determined that it was precluded from applying sales-leaseback accounting. Upon adoption of ASC 842, GCI Holdings considered whether this transaction would have resulted in a completed sale-leaseback transaction and concluded that the transaction did not meet the criteria and should continue to be accounted for in the same manner as previously determined. The Company has entered into finance lease agreements with satellite providers for transponder capacity to transmit voice and data traffic in rural Alaska. The Company is also party to finance lease agreements for an office building and certain retail store locations. The Company also leases office space, land for towers and communication facilities, satellite transponders, fiber capacity, and equipment. These leases are classified as operating leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate at the commencement date of the lease. During the three months ended June 30, 2019, the Company amended its lease agreement with a satellite provider that resulted in a $22.8 million reduction to the finance lease liability and a $15.3 million reduction to fixed assets, resulting in a gain of $7.5 million that is included in Other, net on the condensed consolidated statements of operations. Our leases have remaining lease terms of less than one year to 31 years , some of which may include the option to extend for up to 40 years , and some of which include options to terminate the leases within 4 years . The components of lease cost during the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended June 30, 2019 June 30, 2019 amounts in thousands Operating lease cost (1) $ 10,929 20,709 Finance lease cost Depreciation of leased assets $ 2,158 4,317 Interest on lease liabilities 311 817 Total finance lease cost $ 2,469 5,134 (1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the financial statements. For the three months ended June 30, 2018, the Company recorded depreciation expense on finance leases (previously referred to as capital leases) and operating lease expense of $2.2 million and $13.5 million , respectively. For the six months ended June 30, 2018, the Company recorded depreciation expense on finance leases (previously referred to as capital leases) and operating lease expense of $2.9 million and $16.8 million , respectively. The remaining weighted-average lease term and the weighted average discount rate were as follows: Six months ended June 30, 2019 Weighted-average remaining lease term (years): Finance leases 3.73 Operating leases 5.12 Weighted-average discount rate: Finance leases 5.07 Operating leases 4.99 Supplemental balance sheet information related to leases was as follows: June 30, 2019 amounts in thousands Operating leases: Operating lease right-of-use assets, net (1) $ 135,946 Current operating lease liabilities (2) $ 38,402 Operating lease liabilities (3) 94,046 Total operating lease liabilities $ 132,448 Finance Leases: Property and equipment, at cost $ 18,102 Accumulated depreciation (3,852 ) Property and equipment, net $ 14,250 Current obligations under finance leases (4) $ 4,832 Obligations under finance leases 9,885 Total finance lease liabilities $ 14,717 (1) Operating lease right-of-use assets, net are included within the other assets, net line item in the accompanying condensed consolidated balance sheets. (2) Current operating lease liabilities are included within the other current liabilities line item in the accompanying condensed consolidated balance sheets. (3) Operating lease liabilities are included within the other liabilities line item in the accompanying condensed consolidated balance sheets. (4) Current obligations under finance leases are included within the other current liabilities line item in the accompanying condensed consolidated balance sheets. Supplemental cash flow information related to leases was as follows: Six months ended June 30, 2019 amounts in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,025 Operating cash flows from finance leases $ 817 Financing cash flows from finance leases $ 5,181 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 37,728 Finance leases $ — Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at June 30, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligation amounts in thousands Remainder of 2019 $ 2,742 22,825 3,853 2020 5,491 41,292 7,797 2021 4,076 33,599 7,953 2022 1,973 21,596 8,112 2023 678 14,803 8,274 Thereafter 1,734 23,755 142,825 Total lease payments 16,694 157,870 178,814 Less: imputed interest (1,977 ) (25,422 ) (86,918 ) Total lease liabilities $ 14,717 132,448 91,896 |
Leases | Leases In February 2016 and subsequently, the FASB issued new guidance which revises the accounting for leases (“ASC 842”). Under the new guidance, entities that lease assets are required to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases regardless of whether they are classified as finance or operating leases. In addition, new disclosures are required to meet the objective of enabling users of the financial statements to better understand the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted this guidance on January 1, 2019 and elected the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption. Results for reporting periods beginning after January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for those periods. The Company elected certain of the available transition practical expedients, including those that permit it to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. The Company did not elect the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. The most significant impact of the new guidance was the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases. In addition, the Company elected the practical expedient to account for the lease and non-lease components as a single lease component and will not recognize right-of-use assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date. The Company recognized $105 million of ROU assets, $28 million of short-term operating lease liabilities and $77 million of long-term operating lease liabilities in the accompanying condensed consolidated balance sheet upon the adoption of the new standard. In 2016 and 2017, GCI Holdings sold certain tower sites and entered into a master lease agreement in which it leased back space on those tower sites. At the time, GCI Holdings determined that it was precluded from applying sales-leaseback accounting. Upon adoption of ASC 842, GCI Holdings considered whether this transaction would have resulted in a completed sale-leaseback transaction and concluded that the transaction did not meet the criteria and should continue to be accounted for in the same manner as previously determined. The Company has entered into finance lease agreements with satellite providers for transponder capacity to transmit voice and data traffic in rural Alaska. The Company is also party to finance lease agreements for an office building and certain retail store locations. The Company also leases office space, land for towers and communication facilities, satellite transponders, fiber capacity, and equipment. These leases are classified as operating leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate at the commencement date of the lease. During the three months ended June 30, 2019, the Company amended its lease agreement with a satellite provider that resulted in a $22.8 million reduction to the finance lease liability and a $15.3 million reduction to fixed assets, resulting in a gain of $7.5 million that is included in Other, net on the condensed consolidated statements of operations. Our leases have remaining lease terms of less than one year to 31 years , some of which may include the option to extend for up to 40 years , and some of which include options to terminate the leases within 4 years . The components of lease cost during the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended June 30, 2019 June 30, 2019 amounts in thousands Operating lease cost (1) $ 10,929 20,709 Finance lease cost Depreciation of leased assets $ 2,158 4,317 Interest on lease liabilities 311 817 Total finance lease cost $ 2,469 5,134 (1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the financial statements. For the three months ended June 30, 2018, the Company recorded depreciation expense on finance leases (previously referred to as capital leases) and operating lease expense of $2.2 million and $13.5 million , respectively. For the six months ended June 30, 2018, the Company recorded depreciation expense on finance leases (previously referred to as capital leases) and operating lease expense of $2.9 million and $16.8 million , respectively. The remaining weighted-average lease term and the weighted average discount rate were as follows: Six months ended June 30, 2019 Weighted-average remaining lease term (years): Finance leases 3.73 Operating leases 5.12 Weighted-average discount rate: Finance leases 5.07 Operating leases 4.99 Supplemental balance sheet information related to leases was as follows: June 30, 2019 amounts in thousands Operating leases: Operating lease right-of-use assets, net (1) $ 135,946 Current operating lease liabilities (2) $ 38,402 Operating lease liabilities (3) 94,046 Total operating lease liabilities $ 132,448 Finance Leases: Property and equipment, at cost $ 18,102 Accumulated depreciation (3,852 ) Property and equipment, net $ 14,250 Current obligations under finance leases (4) $ 4,832 Obligations under finance leases 9,885 Total finance lease liabilities $ 14,717 (1) Operating lease right-of-use assets, net are included within the other assets, net line item in the accompanying condensed consolidated balance sheets. (2) Current operating lease liabilities are included within the other current liabilities line item in the accompanying condensed consolidated balance sheets. (3) Operating lease liabilities are included within the other liabilities line item in the accompanying condensed consolidated balance sheets. (4) Current obligations under finance leases are included within the other current liabilities line item in the accompanying condensed consolidated balance sheets. Supplemental cash flow information related to leases was as follows: Six months ended June 30, 2019 amounts in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,025 Operating cash flows from finance leases $ 817 Financing cash flows from finance leases $ 5,181 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 37,728 Finance leases $ — Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at June 30, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligation amounts in thousands Remainder of 2019 $ 2,742 22,825 3,853 2020 5,491 41,292 7,797 2021 4,076 33,599 7,953 2022 1,973 21,596 8,112 2023 678 14,803 8,274 Thereafter 1,734 23,755 142,825 Total lease payments 16,694 157,870 178,814 Less: imputed interest (1,977 ) (25,422 ) (86,918 ) Total lease liabilities $ 14,717 132,448 91,896 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities New Markets Tax Credit Entities GCI entered into several arrangements under the New Markets Tax Credit ("NMTC") program with US Bancorp to help fund various projects that extended terrestrial broadband service for the first time to rural Northwestern Alaska communities via a high capacity hybrid fiber optic and microwave network. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments. Each of the transactions has an investment fund, which is a special purpose entity created to effect the financing arrangement. In each of the transactions, the Company loaned money to the investment fund and US Bancorp invested money in the investment fund. The investment fund would then contribute the funds from the Company's loan and US Bancorp's investment to a CDE. The CDE, in turn, would loan the funds to the Company's wholly owned subsidiary, Unicom, Inc. ("Unicom") as partial financing for the projects. US Bancorp is entitled to substantially all of the benefits derived from the NMTCs. All of the loan proceeds to Unicom, net of syndication and arrangement fees, were restricted for use on the projects. Restricted cash of $0.7 million was held by Unicom at June 30, 2019 and is included in the accompanying condensed consolidated balance sheets. The Company completed construction of the projects partially funded by these transactions. These transactions include put/call provisions whereby the Company may be obligated or entitled to repurchase US Bancorp’s interest in each investment fund for a nominal amount. The Company believes that US Bancorp will exercise the put options at the end of the compliance periods for each of the transactions. The NMTCs are subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code of 1986, as amended. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangements. Non-compliance with applicable requirements could result in projected tax benefits not being realized by US Bancorp. The Company has agreed to indemnify US Bancorp for any loss or recapture of NMTCs until such time as its obligation to deliver tax benefits is relieved. There have been no credit recaptures as of June 30, 2019 . The value attributed to the put/calls is nominal. The Company has determined that each of the investment funds are variable interest entities ("VIEs"). The consolidated financial statements of each of the investment funds include the CDEs. The ongoing activities of the VIEs – collecting and remitting interest and fees and NMTC compliance – were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the VIEs. Management considered the contractual arrangements that obligate the Company to deliver tax benefits and provide various other guarantees to US Bancorp; US Bancorp’s lack of a material interest in the underlying economics of the project; and the fact that the Company is obligated to absorb losses of the VIEs. The Company concluded that it is the primary beneficiary of each and consolidated the VIEs in accordance with the accounting standard for consolidation. The assets and liabilities of the consolidated VIEs were $89 million and $63 million , respectively, as of June 30, 2019 . The assets of the VIEs serve as the sole source of repayment for the debt issued by these entities. US Bank does not have recourse to us or our other assets, with the exception of customary representations and indemnities the Company has provided. The Company is not required and does not currently intend to provide additional financial support to these VIEs. While these subsidiaries are included in the Company's consolidated financial statements, these subsidiaries are separate legal entities and their assets are legally owned by them and not available to the Company's creditors. The following table summarizes the key terms of each of the NMTC transactions: Financing Arrangement Investment Funds Transaction Date Loan Amount Interest Rate on Loan to Investment Fund Maturity Date US Bancorp Investment Loan to Unicom Interest Rate on Loan(s) to Unicom Expected Put Option Exercise NMTC #2 TIF 2 & TIF 2-USB October 3, 2012 $37.7 million 1% October 2, 2042 $17.5 million $52.0 million 0.71% to 0.77% October 2019 NMTC #3 TIF 3 December 11, 2012 $8.2 million 1% December 10, 2042 $3.8 million $12.0 million 1.35% December 2019 NMTC #4 TIF 4 March 21, 2017 $6.7 million 1% March 21, 2040 $3.3 million $9.8 million 0.73% March 2024 NMTC #5 TIF 5-1 and TIF 5-2 December 22, 2017 $10.4 million 1% December 22, 2047 $5.1 million $14.7 million 0.67% to 1.24% December 2024 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation GCI Liberty has granted to certain directors, employees and employees of its subsidiaries, restricted shares (“RSAs”), restricted stock units (“RSUs”) and options to purchase shares of GCI Liberty’s common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options, RSAs and RSUs) based on the grant-date fair value (“GDFV”) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date. Included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations are $6.8 million and $7.9 million of stock based compensation during the three months ended June 30, 2019 and 2018 , respectively, and $12.4 million and $13.2 million during the six months ended June 30, 2019 and 2018 , respectively. During the six months ended June 30, 2019, and in connection with GCI Liberty's CEO's employment agreement, GCI Liberty granted 22 thousand options to purchase shares of GCI Liberty Series B common stock and 51 thousand performance-based RSUs of GCI Liberty Series B common stock to GCI Liberty's CEO. Such options had a GDFV of $18.27 per share. The RSUs had a GDFV of $53.78 per share at the time they were granted. The options cliff vested immediately upon grant, and the RSUs cliff vest in one year , subject to the satisfaction of certain performance objectives. Performance objectives, which are subjective, are considered in determining the timing and amount of the compensation expense recognized. When the satisfaction of the performance objectives becomes probable, the Company records compensation expense. The probability of satisfying the performance objectives is assessed at the end of each reporting period. The Company has calculated the GDFV for all of its equity classified Awards and any subsequent remeasurement of its liability classified Awards using the Black-Scholes-Merton Model. The Company estimates the expected term of the Awards based on historical exercise and forfeiture data. The volatility used in the calculation for Awards is based on the historical volatility of GCI Liberty's stock and the implied volatility of publicly traded GCI Liberty options. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options. GCI Liberty-Outstanding Awards The following tables present the number and weighted average exercise price ("WAEP") of Awards to purchase GCI Liberty common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the Awards. Series A Weighted Aggregate average intrinsic Awards remaining value (000's) WAEP life (millions) Outstanding at January 1, 2019 1,650 $ 47.61 Granted — $ — Exercised (214 ) $ 19.96 Forfeited/Cancelled (2 ) $ 43.47 Outstanding at June 30, 2019 1,434 $ 51.73 1.3 years $ 14 Exercisable at June 30, 2019 1,114 $ 53.31 0.9 years $ 9 Series B Weighted Aggregate average intrinsic Awards remaining value (000's) WAEP life (millions) Outstanding at January 1, 2019 1,223 $ 56.10 Granted 22 $ 58.11 Exercised — $ — Forfeited/Cancelled — $ — Outstanding at June 30, 2019 1,245 $ 56.14 3.6 years $ 6 Exercisable at June 30, 2019 926 $ 56.05 3.9 years $ 4 As of June 30, 2019 , the total unrecognized compensation cost related to unvested options and RSA/RSUs was approximately $6 million and $24 million , respectively. Such amounts will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 1.3 years and 2.2 years , respectively. As of June 30, 2019, GCI Liberty had 484 thousand RSUs outstanding. As of June 30, 2019 , GCI Liberty reserved for issuance upon exercise of outstanding stock options approximately 1.4 million shares of GCI Liberty Series A common stock and 1.2 million shares of GCI Liberty Series B common stock. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Rural Health Care (“RHC”) Program Subsidiaries of GCI Holdings receive support from various Universal Service Fund ("USF") programs including the RHC Program. The USF programs are subject to change by regulatory actions taken by the Federal Communications Commission ("FCC") or legislative actions. The following paragraphs describe certain separate matters related to the RHC Program that impact or could impact the revenue earned by the Company. On November 30, 2018, a subsidiary of GCI Holdings received multiple funding denial notices from Universal Service Administrative Company ("USAC"), denying requested funding from the RHC Program operated by a rural health customer (the "Customer") for the funding year that ended on June 30, 2018. In November 2017, USAC requested information from the Customer related to bidding process documentation for two separate service contracts a subsidiary of GCI Holdings has with the Customer. Although the Customer timely responded, USAC found that bids previously received were not submitted with the original funding request and/or that bidding information submitted was related to the wrong bidding year. The Customer filed an appeal with USAC on January 29, 2019 and made a supplemental filing on March 12, 2019. On May 6, 2019, the Customer received a letter from USAC that denied the Customer’s appeal for all requested funding on the basis that the Customer failed to indicate that it had received, and failed to submit copies of, the responses or bids received, when it originally sought funding from the RHC Program under the two service contracts that a subsidiary of GCI Holdings has with the Customer. The Customer appealed USAC’s decision to the Wireline Competition Bureau of the FCC on July 5, 2019 but resolution and the timing of the appeal are unknown at this time. As of March 31, 2019, GCI Holdings had accounts receivable of approximately $21.3 million outstanding associated with these two service contracts, which is dependent upon receipt of funding from USAC. Given that USAC has denied the Customer’s appeal as specifically outlined in the May 6, 2019 letter received by the Customer, it is probable that GCI Holdings has incurred a loss and an accounts receivable reserve has been recorded in the amount of $21.3 million |
Information About the Company's
Information About the Company's Operating Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Information About the Company's Operating Segments | Information About the Company's Operating Segments The Company, through its interests in subsidiaries and other companies, is primarily engaged in the broadband communications services industry. The Company identifies its reportable segments as (A) those consolidated companies that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA (as defined below) or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of the Company’s annual pre‑tax earnings. The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, Adjusted OIBDA (as defined below), and subscriber metrics. For the three and six months ended June 30, 2019 , the Company has identified the following subsidiary as a reportable segment: • GCI Holdings-provides a full range of wireless, data, video, voice, and managed services to residential, businesses, governmental entities, and educational and medical institutions primarily in Alaska. For presentation purposes the Company is providing financial information for Liberty Broadband. While the Company’s equity method investment in Liberty Broadband does not meet the reportable segment threshold defined above, the Company believes that the inclusion of such information is relevant to users of these financial statements. • Liberty Broadband-an equity method affiliate of the Company, accounted for at fair value, has a non‑controlling interest in Charter, and a wholly‑owned subsidiary, Skyhook Wireless, Inc. ("Skyhook"). Charter is the second largest cable operator in the United States and a leading broadband communications services company providing video, Internet and voice services. Skyhook provides a Wi‑Fi based location platform focused on providing positioning technology and contextual location intelligence solutions. The Company’s operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the consolidated subsidiaries included in the segments are the same as those described in the Company’s Summary of Significant Accounting Policies in note 2 to the accompanying consolidated financial statements to the Annual Report on Form 10-K for the year ended December 31, 2018. Performance Measures Revenue by segment from contracts with customers, classified by customer type and significant service offerings follows: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 amounts in thousands GCI Holdings Consumer Revenue Wireless $ 27,505 28,966 54,997 36,728 Data 41,457 39,243 82,635 49,269 Video 21,045 22,146 42,061 27,908 Voice 4,321 4,710 8,782 5,878 Business Revenue Wireless 19,393 21,391 37,777 26,818 Data 63,733 76,223 131,843 94,654 Video 3,988 3,487 7,813 4,509 Voice 6,636 6,294 12,840 7,921 Lease, grant, and revenue from subsidies 22,901 25,321 45,442 30,888 Total GCI Holdings 210,979 227,781 424,190 284,573 Corporate and other 6,587 5,709 11,112 10,121 Total $ 217,566 233,490 435,302 294,694 Liberty Broadband revenue totaled $3.7 million and $3.4 million for the three months ended June 30, 2019 and 2018, respectively and $7.2 million and $15.2 million for the six months ended June 30, 2019 and 2018, respectively. The Company had gross receivables of $206 million and deferred revenue of $38 million at June 30, 2019 from contracts with customers, which amounts exclude receivables and deferred revenue arising from leases, grants, and subsidies. Our customers generally pay for services in advance of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as revenue in the accompanying condensed consolidated statements of operations as the services are provided. Changes in the contract liability balance for the Company during the six months ended June 30, 2019 were not materially impacted by other factors. The Company expects to recognize revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) of approximately $111 million in the remainder of 2019, $205 million in 2020, $139 million in 2021, $97 million in 2022 and $86 million in 2023 and thereafter. The Company applies certain practical expedients as permitted under ASC 606 and does not disclose information about remaining performance obligations that have original expected durations of one year or less, information about revenue remaining from usage based performance obligations that are recognized over time as-invoiced, or variable consideration allocated to wholly unsatisfied performance obligations. The Company defines Adjusted OIBDA, a non-GAAP measure, as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock‑based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business' performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock‑based compensation, separately reported litigation settlements, insurance proceeds and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Adjusted OIBDA is summarized as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 amounts in thousands GCI Holdings $ 66,121 78,915 110,592 98,663 Liberty Broadband (4,174 ) (2,776 ) (7,291 ) 1,784 Corporate and other (4,722 ) (4,800 ) (9,846 ) (10,460 ) 57,225 71,339 93,455 89,987 Eliminate Liberty Broadband 4,174 2,776 7,291 (1,784 ) $ 61,399 74,115 100,746 88,203 Other Information June 30, 2019 Total Investments Capital assets in affiliates expenditures amounts in thousands GCI Holdings $ 3,349,788 608 69,979 Liberty Broadband 12,107,169 12,023,742 50 Corporate and other 6,828,774 169,187 887 Eliminate Liberty Broadband (12,107,169 ) (12,023,742 ) (50 ) Consolidated $ 10,178,562 169,795 70,866 The following table provides a reconciliation of consolidated segment Adjusted OIBDA to operating income (loss) and earnings (loss) from continuing operations before income taxes: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 amounts in thousands Consolidated segment Adjusted OIBDA $ 61,399 74,115 100,746 88,203 Stock‑based compensation (6,754 ) (7,929 ) (12,385 ) (13,165 ) Depreciation and amortization (65,891 ) (64,388 ) (133,569 ) (80,409 ) Insurance proceeds and restructuring, net (4,218 ) — (1,718 ) — Operating income (loss) (15,464 ) 1,798 (46,926 ) (5,371 ) Interest expense (36,284 ) (32,378 ) (69,832 ) (40,051 ) Share of earnings (loss) of affiliates, net (1,068 ) 10,350 (4,364 ) 7,858 Realized and unrealized gains (losses) on financial instruments, net 744,170 (459,207 ) 1,848,605 (559,405 ) Other, net 9,754 (2,631 ) 10,545 (2,387 ) Earnings (loss) from continuing operations before income taxes $ 701,108 (482,068 ) 1,738,028 (599,356 ) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Pronouncements Not Yet Adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued new guidance which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance will be effective for the Company in the first quarter of 2020 with early adoption permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Preliminary Acquisition Price Allocation | The acquisition price allocation for GCI, LLC is as follows (amounts in thousands): Cash and cash equivalents including restricted cash $ 147,957 Receivables 171,014 Property and equipment 1,211,392 Goodwill 966,044 Intangible assets not subject to amortization 572,500 Intangible assets subject to amortization 468,737 Other assets 83,422 Deferred revenue (92,561 ) Debt, including capital leases (1,632,002 ) Other liabilities (171,151 ) Deferred income tax liabilities (276,683 ) Non-controlling interest (7,000 ) $ 1,441,669 |
Pro Forma Revenue and Net Earnings | The unaudited pro forma revenue, and net earnings of GCI, LLC, prepared utilizing the historical financial statements of HoldCo, giving effect to acquisition accounting related adjustments made at the time of acquisition, as if the acquisition discussed above occurred on January 1, 2017, are as follows: Three months ended Six months ended June 30, 2018 amounts in thousands, except per share amounts Revenue $ 224,080 443,552 Net earnings (loss) $ (311,875 ) (511,078 ) Net earnings (loss) attributable to GCI, LLC member $ (311,720 ) (510,768 ) |
Assets and Liabilities Measur_2
Assets and Liabilities Measured at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The Company’s assets and liabilities measured at fair value are as follows: June 30, 2019 December 31, 2018 Description Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) amounts in thousands Cash equivalents $ 87,448 87,448 — 66,348 66,348 — Equity securities $ 2,117,533 2,117,533 — 1,529,901 1,529,901 — Investment in Liberty Broadband $ 4,448,302 4,448,302 — 3,074,373 3,074,373 — Derivative instrument $ 138,701 — 138,701 20,340 — 20,340 |
Schedule of Realized and Unrealized Gains (Losses) on Financial Instruments | Realized and unrealized gains (losses) on financial instruments, net are comprised of changes in the fair value of the following: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 amounts in thousands Equity securities $ 258,718 (97,478 ) 593,038 (229,040 ) Investment in Liberty Broadband 532,669 (425,538 ) 1,373,928 (402,917 ) Derivative instruments (47,217 ) 63,809 (118,361 ) 72,552 $ 744,170 (459,207 ) 1,848,605 (559,405 ) |
Investments in Equity Securit_2
Investments in Equity Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Equity Securities | Investments in equity securities, the majority of which are carried at fair value, are summarized as follows: June 30, December 31, 2019 2018 amounts in thousands Charter (a) $ 2,117,533 1,526,984 Other investments (b) 5,285 6,533 $ 2,122,818 1,533,517 (a) A portion of the Charter equity securities are considered covered shares and subject to certain contractual restrictions in accordance with the indemnification agreement entered into by GCI Liberty. Pursuant to the indemnification agreement, GCI Liberty has agreed to indemnify LI LLC for certain payments made to a holder of LI LLC 1.75% exchangeable debentures due 2046. (b) The Company has elected the measurement alternative for a portion of these securities. |
Investments in Affiliates Acc_2
Investments in Affiliates Accounted for Using the Equity Method (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments and Summarized Financial Information | The following table includes the Company’s carrying amount and percentage ownership of the more significant investments in affiliates at June 30, 2019 and the carrying amount at December 31, 2018 : June 30, 2019 December 31, 2018 Percentage ownership Market value Carrying amount Carrying amount dollars in thousands LendingTree (a) 26.7 % $ 1,446,579 $ 167,703 174,002 Other various NA 2,092 3,028 $ 169,795 177,030 (a) Both the Company's ownership interest in LendingTree and the Company's share of LendingTree's earnings (losses) are reported on a three month lag. The market value disclosed is as of June 30, 2019. June 30, December 31, 2019 2018 amounts in thousands Current assets $ 74,315 84,574 Investment in Charter, accounted for using the equity method 12,023,742 12,004,376 Other assets 9,112 9,487 Total assets 12,107,169 12,098,437 Long-term debt 523,549 522,928 Deferred income tax liabilities 964,584 965,829 Other liabilities 31,976 11,062 Equity 10,587,060 10,598,618 Total liabilities and shareholders' equity $ 12,107,169 12,098,437 Three months ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 amounts in thousands Revenue $ 3,747 3,371 7,205 15,162 Operating expenses, net (10,913 ) (8,442 ) (20,572 ) (17,987 ) Operating income (loss) (7,166 ) (5,071 ) (13,367 ) (2,825 ) Share of earnings (losses) of affiliates 45,400 32,911 80,249 42,213 Gain (loss) on dilution of investment in affiliate (16,322 ) (5,205 ) (57,725 ) (31,962 ) Realized and unrealized gains (losses) on financial instruments, net — (2,019 ) — (2,019 ) Other income (expense), net (5,936 ) (5,842 ) (12,056 ) (10,654 ) Income tax benefit (expense) (3,924 ) (4,194 ) 650 757 Net earnings (loss) $ 12,052 10,580 (2,249 ) (4,490 ) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | Intangible Assets Subject to Amortization June 30, 2019 December 31, 2018 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in thousands Customer relationships $ 408,267 (75,292 ) 332,975 408,267 (55,417 ) 352,850 Other amortizable intangibles 128,452 (50,600 ) 77,852 122,759 (39,603 ) 83,156 Total $ 536,719 (125,892 ) 410,827 531,026 (95,020 ) 436,006 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Remainder of 2019 $ 30,665 2020 $ 52,305 2021 $ 41,924 2022 $ 36,261 2023 $ 33,434 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Debt is summarized as follows: Outstanding Principal Carrying Value June 30, June 30, December 31, 2019 2019 2018 amounts in thousands Margin Loan Facility $ 900,000 900,000 900,000 Senior notes 775,000 797,840 803,287 Senior credit facility 713,895 713,895 715,124 Wells Fargo note payable 7,319 7,319 7,554 Deferred financing costs — (6,854 ) (2,267 ) Total debt $ 2,396,214 2,412,200 2,423,698 Debt classified as current (included in other current liabilities) (901,856 ) (900,759 ) Total long-term debt $ 1,510,344 1,522,939 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Expense and Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Six months ended June 30, 2019 amounts in thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,025 Operating cash flows from finance leases $ 817 Financing cash flows from finance leases $ 5,181 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 37,728 Finance leases $ — The components of lease cost during the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended June 30, 2019 June 30, 2019 amounts in thousands Operating lease cost (1) $ 10,929 20,709 Finance lease cost Depreciation of leased assets $ 2,158 4,317 Interest on lease liabilities 311 817 Total finance lease cost $ 2,469 5,134 (1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the financial statements. The remaining weighted-average lease term and the weighted average discount rate were as follows: Six months ended June 30, 2019 Weighted-average remaining lease term (years): Finance leases 3.73 Operating leases 5.12 Weighted-average discount rate: Finance leases 5.07 Operating leases 4.99 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: June 30, 2019 amounts in thousands Operating leases: Operating lease right-of-use assets, net (1) $ 135,946 Current operating lease liabilities (2) $ 38,402 Operating lease liabilities (3) 94,046 Total operating lease liabilities $ 132,448 Finance Leases: Property and equipment, at cost $ 18,102 Accumulated depreciation (3,852 ) Property and equipment, net $ 14,250 Current obligations under finance leases (4) $ 4,832 Obligations under finance leases 9,885 Total finance lease liabilities $ 14,717 (1) Operating lease right-of-use assets, net are included within the other assets, net line item in the accompanying condensed consolidated balance sheets. (2) Current operating lease liabilities are included within the other current liabilities line item in the accompanying condensed consolidated balance sheets. (3) Operating lease liabilities are included within the other liabilities line item in the accompanying condensed consolidated balance sheets. (4) Current obligations under finance leases are included within the other current liabilities line item in the accompanying condensed consolidated balance sheets. |
Future Lease Payments on Finance Leases | Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at June 30, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligation amounts in thousands Remainder of 2019 $ 2,742 22,825 3,853 2020 5,491 41,292 7,797 2021 4,076 33,599 7,953 2022 1,973 21,596 8,112 2023 678 14,803 8,274 Thereafter 1,734 23,755 142,825 Total lease payments 16,694 157,870 178,814 Less: imputed interest (1,977 ) (25,422 ) (86,918 ) Total lease liabilities $ 14,717 132,448 91,896 |
Future Lease Payments on Operating Leases | Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at June 30, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligation amounts in thousands Remainder of 2019 $ 2,742 22,825 3,853 2020 5,491 41,292 7,797 2021 4,076 33,599 7,953 2022 1,973 21,596 8,112 2023 678 14,803 8,274 Thereafter 1,734 23,755 142,825 Total lease payments 16,694 157,870 178,814 Less: imputed interest (1,977 ) (25,422 ) (86,918 ) Total lease liabilities $ 14,717 132,448 91,896 |
Future Lease Payments on Tower Obligation | Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at June 30, 2019 consisted of the following: Finance Leases Operating Leases Tower Obligation amounts in thousands Remainder of 2019 $ 2,742 22,825 3,853 2020 5,491 41,292 7,797 2021 4,076 33,599 7,953 2022 1,973 21,596 8,112 2023 678 14,803 8,274 Thereafter 1,734 23,755 142,825 Total lease payments 16,694 157,870 178,814 Less: imputed interest (1,977 ) (25,422 ) (86,918 ) Total lease liabilities $ 14,717 132,448 91,896 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity Disclosures [Abstract] | |
Summary of Key Terms of NMTC Transactions | The following table summarizes the key terms of each of the NMTC transactions: Financing Arrangement Investment Funds Transaction Date Loan Amount Interest Rate on Loan to Investment Fund Maturity Date US Bancorp Investment Loan to Unicom Interest Rate on Loan(s) to Unicom Expected Put Option Exercise NMTC #2 TIF 2 & TIF 2-USB October 3, 2012 $37.7 million 1% October 2, 2042 $17.5 million $52.0 million 0.71% to 0.77% October 2019 NMTC #3 TIF 3 December 11, 2012 $8.2 million 1% December 10, 2042 $3.8 million $12.0 million 1.35% December 2019 NMTC #4 TIF 4 March 21, 2017 $6.7 million 1% March 21, 2040 $3.3 million $9.8 million 0.73% March 2024 NMTC #5 TIF 5-1 and TIF 5-2 December 22, 2017 $10.4 million 1% December 22, 2047 $5.1 million $14.7 million 0.67% to 1.24% December 2024 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Number and Weighted Average Exercise Price of Awards | The following tables present the number and weighted average exercise price ("WAEP") of Awards to purchase GCI Liberty common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the Awards. Series A Weighted Aggregate average intrinsic Awards remaining value (000's) WAEP life (millions) Outstanding at January 1, 2019 1,650 $ 47.61 Granted — $ — Exercised (214 ) $ 19.96 Forfeited/Cancelled (2 ) $ 43.47 Outstanding at June 30, 2019 1,434 $ 51.73 1.3 years $ 14 Exercisable at June 30, 2019 1,114 $ 53.31 0.9 years $ 9 Series B Weighted Aggregate average intrinsic Awards remaining value (000's) WAEP life (millions) Outstanding at January 1, 2019 1,223 $ 56.10 Granted 22 $ 58.11 Exercised — $ — Forfeited/Cancelled — $ — Outstanding at June 30, 2019 1,245 $ 56.14 3.6 years $ 6 Exercisable at June 30, 2019 926 $ 56.05 3.9 years $ 4 |
Information About the Company_2
Information About the Company's Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenue by Segment from Contracts with Customers | Revenue by segment from contracts with customers, classified by customer type and significant service offerings follows: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 amounts in thousands GCI Holdings Consumer Revenue Wireless $ 27,505 28,966 54,997 36,728 Data 41,457 39,243 82,635 49,269 Video 21,045 22,146 42,061 27,908 Voice 4,321 4,710 8,782 5,878 Business Revenue Wireless 19,393 21,391 37,777 26,818 Data 63,733 76,223 131,843 94,654 Video 3,988 3,487 7,813 4,509 Voice 6,636 6,294 12,840 7,921 Lease, grant, and revenue from subsidies 22,901 25,321 45,442 30,888 Total GCI Holdings 210,979 227,781 424,190 284,573 Corporate and other 6,587 5,709 11,112 10,121 Total $ 217,566 233,490 435,302 294,694 |
Reconciliation of Adjusted OIBDA to Operating Income and Earnings (Loss) from Continuing Operations | The following table provides a reconciliation of consolidated segment Adjusted OIBDA to operating income (loss) and earnings (loss) from continuing operations before income taxes: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 amounts in thousands Consolidated segment Adjusted OIBDA $ 61,399 74,115 100,746 88,203 Stock‑based compensation (6,754 ) (7,929 ) (12,385 ) (13,165 ) Depreciation and amortization (65,891 ) (64,388 ) (133,569 ) (80,409 ) Insurance proceeds and restructuring, net (4,218 ) — (1,718 ) — Operating income (loss) (15,464 ) 1,798 (46,926 ) (5,371 ) Interest expense (36,284 ) (32,378 ) (69,832 ) (40,051 ) Share of earnings (loss) of affiliates, net (1,068 ) 10,350 (4,364 ) 7,858 Realized and unrealized gains (losses) on financial instruments, net 744,170 (459,207 ) 1,848,605 (559,405 ) Other, net 9,754 (2,631 ) 10,545 (2,387 ) Earnings (loss) from continuing operations before income taxes $ 701,108 (482,068 ) 1,738,028 (599,356 ) Adjusted OIBDA is summarized as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 amounts in thousands GCI Holdings $ 66,121 78,915 110,592 98,663 Liberty Broadband (4,174 ) (2,776 ) (7,291 ) 1,784 Corporate and other (4,722 ) (4,800 ) (9,846 ) (10,460 ) 57,225 71,339 93,455 89,987 Eliminate Liberty Broadband 4,174 2,776 7,291 (1,784 ) $ 61,399 74,115 100,746 88,203 |
Reconciliation of Assets from Segment to Consolidated | June 30, 2019 Total Investments Capital assets in affiliates expenditures amounts in thousands GCI Holdings $ 3,349,788 608 69,979 Liberty Broadband 12,107,169 12,023,742 50 Corporate and other 6,828,774 169,187 887 Eliminate Liberty Broadband (12,107,169 ) (12,023,742 ) (50 ) Consolidated $ 10,178,562 169,795 70,866 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Mar. 09, 2018 | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Liberty Media | Affiliated Entity | |||||
Class of Stock [Line Items] | |||||
Reimbursable expenses | $ 2.2 | $ 2.2 | $ 4.5 | $ 3.9 | |
Liberty Ventures | Series A common stock | |||||
Class of Stock [Line Items] | |||||
Shares redemption ratio | 1 | ||||
Liberty Ventures | Series B common stock | |||||
Class of Stock [Line Items] | |||||
Shares redemption ratio | 1 |
Acquisition - (Narrative) (Deta
Acquisition - (Narrative) (Details) - USD ($) $ in Thousands | Mar. 09, 2018 | Jun. 30, 2018 | Jun. 30, 2018 |
GCI, LLC | |||
Business Acquisition [Line Items] | |||
Net earnings (loss) from continuing operations | $ 6,000 | $ 4,500 | |
GCI, LLC | HoldCo | |||
Business Acquisition [Line Items] | |||
Acquisition price | $ 1,400,000 | ||
Intangible assets subject to amortization | 468,737 | ||
Acquired goodwill deductible for income tax purposes | $ 170,000 | ||
GCI, LLC | HoldCo | Tradename | |||
Business Acquisition [Line Items] | |||
Estimated useful life | 10 years | ||
GCI, LLC | HoldCo | Customer relationships | |||
Business Acquisition [Line Items] | |||
Weighted average useful life | 16 years | ||
GCI, LLC | HoldCo | Right-to-use | |||
Business Acquisition [Line Items] | |||
Weighted average useful life | 8 years |
Acquisition - (Preliminary Purc
Acquisition - (Preliminary Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Mar. 09, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 844,182 | $ 844,182 | |
HoldCo | GCI, LLC | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents including restricted cash | $ 147,957 | ||
Receivables | 171,014 | ||
Property and equipment | 1,211,392 | ||
Goodwill | 966,044 | ||
Intangible assets not subject to amortization | 572,500 | ||
Intangible assets subject to amortization | 468,737 | ||
Other assets | 83,422 | ||
Deferred revenue | (92,561) | ||
Debt, including capital leases | (1,632,002) | ||
Other liabilities | (171,151) | ||
Deferred income tax liabilities | (276,683) | ||
Non-controlling interest | (7,000) | ||
Net assets acquired including goodwill, less noncontrolling interest | $ 1,441,669 |
Acquisition - (Pro Forma Revenu
Acquisition - (Pro Forma Revenue and Net Earnings) (Details) - HoldCo - GCI, LLC - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 224,080 | $ 443,552 |
Net earnings (loss) | (311,875) | (511,078) |
Net earnings (loss) attributable to GCI, LLC member | $ (311,720) | $ (510,768) |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value - (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 87,448 | $ 66,348 |
Equity securities | 2,117,533 | 1,529,901 |
Investment in Liberty Broadband | 4,448,302 | 3,074,373 |
Derivative instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instrument | 138,701 | 20,340 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 87,448 | 66,348 |
Equity securities | 2,117,533 | 1,529,901 |
Investment in Liberty Broadband | 4,448,302 | 3,074,373 |
Quoted prices in active markets for identical assets (Level 1) | Derivative instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instrument | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Equity securities | 0 | 0 |
Investment in Liberty Broadband | 0 | 0 |
Significant other observable inputs (Level 2) | Derivative instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instrument | $ 138,701 | $ 20,340 |
Assets and Liabilities Measur_4
Assets and Liabilities Measured at Fair Value - (Narrative) (Details) - LendingTree | Apr. 29, 2019$ / shares$ / unitshares | Jun. 06, 2017$ / shares$ / unitshares |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Number of shares purchased (in shares) | shares | 450,000 | |
Derivative instrument | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Variable forward contract, term | 3 years | 2 years |
Variable forward contract (in shares) | shares | 642,850 | 642,850 |
Variable forward contract, closing price (in dollars per share) | $ / shares | $ 376.35 | $ 170.70 |
Variable forward contract, floor price (in dollars per share) | $ / unit | 0 | 128.03 |
Variable forward contract, cap price (in dollars per share) | $ / unit | 254 | 211.67 |
Assets and Liabilities Measur_5
Assets and Liabilities Measured at Fair Value - (Schedule of Realized and Unrealized Gains (Losses)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||||
Equity securities | $ 258,718 | $ (97,478) | $ 593,038 | $ (229,040) |
Investment in Liberty Broadband | 532,669 | (425,538) | 1,373,928 | (402,917) |
Derivative instruments | (47,217) | 63,809 | (118,361) | 72,552 |
Realized and unrealized gains (losses) on financial instruments, net | $ 744,170 | $ (459,207) | $ 1,848,605 | $ (559,405) |
Investments in Equity Securit_3
Investments in Equity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in equity securities | $ 2,122,818 | $ 1,533,517 |
GCI Liberty | LI LLC | 1.75% Exchangeable Debentures | Indemnification obligation | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Interest rate | 1.75% | |
Charter | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in equity securities | $ 2,117,533 | 1,526,984 |
Other investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in equity securities | $ 5,285 | $ 6,533 |
Investments in Affiliates Acc_3
Investments in Affiliates Accounted for Using the Equity Method - (Investment in Lending Tree) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Carrying amount | $ 169,795 | $ 169,795 | $ 177,030 | ||
Share of earnings (losses) | $ (1,068) | $ 10,350 | $ (4,364) | $ 7,858 | |
LendingTree | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage ownership | 26.70% | 26.70% | |||
Market value | $ 1,446,579 | $ 1,446,579 | |||
Carrying amount | 167,703 | 167,703 | 174,002 | ||
Share of earnings (losses) | (1,300) | $ 7,700 | (3,400) | $ 5,300 | |
Other | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying amount | $ 2,092 | $ 2,092 | $ 3,028 |
Investments in Affiliates Acc_4
Investments in Affiliates Accounted for Using the Equity Method - (Investment in Liberty Broadband) (Details) $ / shares in Units, $ in Thousands | May 18, 2016USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | May 31, 2015$ / shares |
Schedule of Equity Method Investments [Line Items] | ||||
Investments accounted for using the equity method | $ 169,795 | $ 177,030 | ||
Series A common stock | Charter | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Shares, exchange ratio | 1 | |||
Liberty Broadband | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments accounted for using the equity method | $ 4,448,302 | 3,074,373 | ||
Percentage ownership | 23.50% | |||
Liberty Broadband | Series C Non-voting Shares | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments accounted for using the equity method | $ 2,400,000 | |||
Liberty Broadband | Series C Common Stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Per share price of stock purchased (in dollars per share) | $ / shares | $ 56.23 | |||
Charter | Liberty Broadband | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments accounted for using the equity method | $ 12,023,742 | $ 12,004,376 | ||
Payments to acquire investments | $ 5,000,000 |
Investments in Affiliates Acc_5
Investments in Affiliates Accounted for Using the Equity Method - (Summary of Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments accounted for using the equity method | $ 169,795 | $ 169,795 | $ 177,030 | ||
Realized and unrealized gains (losses) on financial instruments, net | 744,170 | $ (459,207) | 1,848,605 | $ (559,405) | |
Liberty Broadband | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Current assets | 74,315 | 74,315 | 84,574 | ||
Other assets | 9,112 | 9,112 | 9,487 | ||
Total assets | 12,107,169 | 12,107,169 | 12,098,437 | ||
Long-term debt | 523,549 | 523,549 | 522,928 | ||
Deferred income tax liabilities | 964,584 | 964,584 | 965,829 | ||
Other liabilities | 31,976 | 31,976 | 11,062 | ||
Equity | 10,587,060 | 10,587,060 | 10,598,618 | ||
Total liabilities and shareholders' equity | 12,107,169 | 12,107,169 | 12,098,437 | ||
Revenue | 3,747 | 3,371 | 7,205 | 15,162 | |
Operating expenses, net | (10,913) | (8,442) | (20,572) | (17,987) | |
Operating income (loss) | (7,166) | (5,071) | (13,367) | (2,825) | |
Share of earnings (losses) of affiliates | 45,400 | 32,911 | 80,249 | 42,213 | |
Gain (loss) on dilution of investment in affiliate | (16,322) | (5,205) | (57,725) | (31,962) | |
Realized and unrealized gains (losses) on financial instruments, net | 0 | (2,019) | 0 | (2,019) | |
Other income (expense), net | (5,936) | (5,842) | (12,056) | (10,654) | |
Income tax benefit (expense) | (3,924) | (4,194) | 650 | 757 | |
Net earnings (loss) | 12,052 | $ 10,580 | (2,249) | $ (4,490) | |
Liberty Broadband | Charter | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments accounted for using the equity method | $ 12,023,742 | $ 12,023,742 | $ 12,004,376 |
Intangible Assets - (Intangible
Intangible Assets - (Intangibles Subject to Amortization) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 536,719 | $ 531,026 |
Accumulated amortization | (125,892) | (95,020) |
Net carrying amount | 410,827 | 436,006 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 408,267 | 408,267 |
Accumulated amortization | (75,292) | (55,417) |
Net carrying amount | 332,975 | 352,850 |
Other amortizable intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 128,452 | 122,759 |
Accumulated amortization | (50,600) | (39,603) |
Net carrying amount | $ 77,852 | $ 83,156 |
Intangible Assets - (Narrative)
Intangible Assets - (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 15 | $ 16.4 | $ 31.3 | $ 21.6 |
Intangible Assets - (Future Amo
Intangible Assets - (Future Amortization) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Years Ending December 31, | |
Remainder of 2019 | $ 30,665 |
2020 | 52,305 |
2021 | 41,924 |
2022 | 36,261 |
2023 | $ 33,434 |
Debt - (Summary of Debt) (Detai
Debt - (Summary of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 2,396,214 | |
Deferred financing costs | (6,854) | $ (2,267) |
Total debt | 2,412,200 | 2,423,698 |
Debt classified as current (included in other current liabilities) | (901,856) | (900,759) |
Total long-term debt | 1,510,344 | 1,522,939 |
Margin Loan Facility | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | 900,000 | |
Carrying Value | 900,000 | 900,000 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | 775,000 | |
Carrying Value | 797,840 | 803,287 |
Senior credit facility | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | 713,895 | |
Carrying Value | 713,895 | 715,124 |
Wells Fargo note payable | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | 7,319 | |
Carrying Value | $ 7,319 | $ 7,554 |
Debt - (Margin Loan) (Details)
Debt - (Margin Loan) (Details) - USD ($) | Oct. 05, 2018 | Dec. 29, 2017 | Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Debt Instrument [Line Items] | |||||
Repayments of credit facility | $ 332,071,000 | $ 9,971,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Repayments of credit facility | $ 100,000,000 | ||||
Broadband Holdco, LLC | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding balance | $ 200,000,000 | ||||
Broadband Holdco, LLC | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding balance | $ 800,000,000 | ||||
Broadband Holdco, LLC | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 1.85% | ||||
Broadband Holdco, LLC | Series C Common Stock | |||||
Debt Instrument [Line Items] | |||||
Number of shares pledged as collateral (in shares) | 42,681,842 | ||||
Value of shares pledged as collateral | $ 4,400,000,000 | ||||
Broadband Holdco, LLC | Margin Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit availability | $ 1,000,000,000 | ||||
Term of debt | 2 years | ||||
Undrawn commitment fee | 0.75% | ||||
Broadband Holdco, LLC | Margin Loan Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit availability | $ 200,000,000 | ||||
Broadband Holdco, LLC | Margin Loan Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 1.85% | ||||
Qurate Retail | |||||
Debt Instrument [Line Items] | |||||
Distributions to Qurate Retail | $ 1,100,000,000 |
Debt - (Senior Notes) (Details)
Debt - (Senior Notes) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 06, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Debt issued | $ 2,396,214 | ||
Aggregate outstanding principal | $ 2,412,200 | $ 2,423,698 | |
2021 Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.75% | ||
Aggregate outstanding principal | $ 325,000 | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt issued | 775,000 | ||
Aggregate unamortized premium | $ 22,800 | ||
Senior Notes | 2024 Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt issued | $ 325,000 | ||
Interest rate | 6.625% | ||
Senior Notes | 2025 Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.875% |
Debt - (Senior Credit Facility)
Debt - (Senior Credit Facility) (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Term Loan | Term Loan B | |
Line of Credit Facility [Line Items] | |
Line of credit availability | $ 240,700,000 |
Variable interest rate | 2.25% |
Principal payments, a percentage of the original principal amount | 0.25% |
Line of credit outstanding balance | $ 238,900,000 |
Term Loan | Term Loan A | |
Line of Credit Facility [Line Items] | |
Total leverage ratio | 6.50 |
Secured leverage ratio | 4 |
Senior Credit Facility | |
Line of Credit Facility [Line Items] | |
Remainder amount available for borrowing | $ 66,900,000 |
Senior Credit Facility | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Line of credit availability | 550,000,000 |
Line of credit outstanding balance | $ 475,000,000 |
Senior Credit Facility | Revolving Credit Facility | LIBOR | Minimum | |
Line of Credit Facility [Line Items] | |
Variable interest rate | 1.50% |
Senior Credit Facility | Revolving Credit Facility | LIBOR | Maximum | |
Line of Credit Facility [Line Items] | |
Variable interest rate | 2.75% |
Senior Credit Facility | Letters of Credit | |
Line of Credit Facility [Line Items] | |
Line of credit outstanding balance | $ 8,100,000 |
Debt - (Wells Fargo Note Payabl
Debt - (Wells Fargo Note Payable) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Wells Fargo Note Payable | LIBOR | |
Debt Instrument [Line Items] | |
Variable interest rate | 2.25% |
Debt - (Fair Value of Debt) (De
Debt - (Fair Value of Debt) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Senior Notes | |
Debt Instrument [Line Items] | |
Debt, fair value | $ 808.8 |
Leases - (Narrative) (Details)
Leases - (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease right-of-use assets, net | $ 135,946 | $ 135,946 | $ 105,000 | ||
Short-term operating lease liabilities | 38,402 | 38,402 | 28,000 | ||
Operating lease liabilities | 94,046 | 94,046 | $ 77,000 | ||
Reduction in finance lease liability | 22,800 | ||||
Gain on lease modification | $ 7,500 | $ 7,543 | $ 0 | ||
Operating lease, renewal term | 40 years | 40 years | |||
Option to terminate, term | 4 years | ||||
Depreciation expense on finance leases | $ 2,200 | 2,900 | |||
Operating expense on finance leases | $ 13,500 | $ 16,800 | |||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease, term (less than) | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease, term (less than) | 31 years | 31 years | |||
Assets Held Under Finance Leases | |||||
Lessee, Lease, Description [Line Items] | |||||
Reduction in fixed assets | $ 15,300 |
Leases - (Lease Expense) (Detai
Leases - (Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 10,929 | $ 20,709 |
Finance lease cost | ||
Depreciation of leased assets | 2,158 | 4,317 |
Interest on lease liabilities | 311 | 817 |
Total finance lease cost | $ 2,469 | $ 5,134 |
Leases - (Weighted Average Term
Leases - (Weighted Average Term and Discount Rate) (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term, Finance leases | 3 years 8 months 23 days |
Weighted-average remaining lease term, Operating leases | 5 years 1 month 13 days |
Weighted-average discount rate, Finance leases | 5.07% |
Weighted-average discount rate, Operating leases | 4.99% |
Leases - (Supplemental Balance
Leases - (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Operating leases: | ||
Operating lease right-of-use assets, net | $ 135,946 | $ 105,000 |
Current operating lease liabilities | 38,402 | 28,000 |
Operating lease liabilities | 94,046 | $ 77,000 |
Total operating lease liabilities | 132,448 | |
Finance Leases: | ||
Property and equipment, at cost | 18,102 | |
Accumulated depreciation | (3,852) | |
Property and equipment, net | 14,250 | |
Current obligations under finance leases | 4,832 | |
Obligations under finance leases | 9,885 | |
Total finance lease liabilities | $ 14,717 |
Leases - (Supplemental Cash Flo
Leases - (Supplemental Cash Flow Information) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 22,025 |
Operating cash flows from finance leases | 817 |
Financing cash flows from finance leases | 5,181 |
Right-of-use assets obtained in exchange for lease obligations | |
Operating leases | 37,728 |
Finance leases | $ 0 |
Leases - (Future Lease Payments
Leases - (Future Lease Payments) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Finance Leases | |
Remainder of 2019 | $ 2,742 |
2020 | 5,491 |
2021 | 4,076 |
2022 | 1,973 |
2023 | 678 |
Thereafter | 1,734 |
Total lease payments | 16,694 |
Less: imputed interest | (1,977) |
Total lease liabilities | 14,717 |
Operating Leases | |
Remainder of 2019 | 22,825 |
2020 | 41,292 |
2021 | 33,599 |
2022 | 21,596 |
2023 | 14,803 |
Thereafter | 23,755 |
Total lease payments | 157,870 |
Less: imputed interest | (25,422) |
Total lease liabilities | 132,448 |
Tower Obligation | |
Remainder of 2019 | 3,853 |
2020 | 7,797 |
2021 | 7,953 |
2022 | 8,112 |
2023 | 8,274 |
Thereafter | 142,825 |
Total lease payments | 178,814 |
Less: imputed interest | (86,918) |
Total lease liabilities | $ 91,896 |
Variable Interest Entities - (N
Variable Interest Entities - (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 749 | $ 775 |
Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Tax credit percentage | 39.00% | |
Restricted cash | $ 700 | |
Percentage of recapture | 100.00% | |
Recapture period | 7 years | |
Assets | $ 89,000 | |
Liabilities | $ 63,000 |
Variable Interest Entities - (S
Variable Interest Entities - (Summary of Key Terms of NMTC Transactions) (Details) - Primary Beneficiary $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
NMTC 2 | |
Variable Interest Entity [Line Items] | |
Loans to VIE | $ 37.7 |
Interest rate percentage | 1.00% |
NMTC 2 | US Bancorp | |
Variable Interest Entity [Line Items] | |
Amount to other entity | $ 17.5 |
NMTC 2 | Unicom | |
Variable Interest Entity [Line Items] | |
Amount to other entity | $ 52 |
NMTC 2 | Unicom | Minimum | |
Variable Interest Entity [Line Items] | |
Interest rate percentage | 0.71% |
NMTC 2 | Unicom | Maximum | |
Variable Interest Entity [Line Items] | |
Interest rate percentage | 0.77% |
NMTC 3 | |
Variable Interest Entity [Line Items] | |
Loans to VIE | $ 8.2 |
Interest rate percentage | 1.00% |
NMTC 3 | US Bancorp | |
Variable Interest Entity [Line Items] | |
Amount to other entity | $ 3.8 |
NMTC 3 | Unicom | |
Variable Interest Entity [Line Items] | |
Interest rate percentage | 1.35% |
Amount to other entity | $ 12 |
NMTC 4 | |
Variable Interest Entity [Line Items] | |
Loans to VIE | $ 6.7 |
Interest rate percentage | 1.00% |
NMTC 4 | US Bancorp | |
Variable Interest Entity [Line Items] | |
Amount to other entity | $ 3.3 |
NMTC 4 | Unicom | |
Variable Interest Entity [Line Items] | |
Interest rate percentage | 0.73% |
Amount to other entity | $ 9.8 |
NMTC 5 | |
Variable Interest Entity [Line Items] | |
Loans to VIE | $ 10.4 |
Interest rate percentage | 1.00% |
NMTC 5 | US Bancorp | |
Variable Interest Entity [Line Items] | |
Amount to other entity | $ 5.1 |
NMTC 5 | Unicom | |
Variable Interest Entity [Line Items] | |
Amount to other entity | $ 14.7 |
NMTC 5 | Unicom | Minimum | |
Variable Interest Entity [Line Items] | |
Interest rate percentage | 0.67% |
NMTC 5 | Unicom | Maximum | |
Variable Interest Entity [Line Items] | |
Interest rate percentage | 1.24% |
Stock-Based Compensation - (Nar
Stock-Based Compensation - (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6,754 | $ 7,929 | $ 12,385 | $ 13,165 |
GCI Liberty | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6,800 | $ 7,900 | $ 12,400 | $ 13,200 |
Dividend rate used | 0.00% | |||
GCI Liberty | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding units (in shares) | 484 | 484 | ||
GCI Liberty | Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to unvested options | $ 6,000 | $ 6,000 | ||
Weighted average period for compensation cost to be recognized | 1 year 3 months 18 days | |||
GCI Liberty | RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to unvested restricted shares | $ 24,000 | $ 24,000 | ||
Weighted average period for compensation cost to be recognized | 2 years 2 months 12 days | |||
GCI Liberty | Series B common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 22 | |||
Shares reserved for issuance upon exercise | 1,200 | 1,200 | ||
GCI Liberty | Series A common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 0 | |||
Shares reserved for issuance upon exercise | 1,400 | 1,400 | ||
GCI Liberty | CEO | Series B common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted (in shares) | 22 | |||
Options, weighted average GDFV (in dollars per share) | $ 18.27 | |||
GCI Liberty | CEO | Series B common stock | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units granted (in shares) | 51 | |||
Granted shares, weighted average GDFV (in dollars per share) | $ 53.78 | |||
Award vesting period | 1 year |
Stock-Based Compensation - (Sch
Stock-Based Compensation - (Schedule of Outstanding Awards) (Details) - GCI Liberty $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Series A common stock | |
Awards | |
Outstanding at beginning of period (in shares) | shares | 1,650 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (214) |
Forfeited/Cancelled (in shares) | shares | (2) |
Outstanding at end of period (in shares) | shares | 1,434 |
Exercisable at end of period (in shares) | shares | 1,114 |
WAEP | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 47.61 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 19.96 |
Forfeited/Cancelled (in dollars per share) | $ / shares | 43.47 |
Outstanding at end of period (in dollars per share) | $ / shares | 51.73 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 53.31 |
Weighted average remaining life | |
Outstanding at end of period | 1 year 3 months 18 days |
Exercisable at end of period | 10 months 24 days |
Aggregate intrinsic value | |
Outstanding at end of period | $ | $ 14 |
Exercisable at end of period | $ | $ 9 |
Series B common stock | |
Awards | |
Outstanding at beginning of period (in shares) | shares | 1,223 |
Granted (in shares) | shares | 22 |
Exercised (in shares) | shares | 0 |
Forfeited/Cancelled (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 1,245 |
Exercisable at end of period (in shares) | shares | 926 |
WAEP | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 56.10 |
Granted (in dollars per share) | $ / shares | 58.11 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited/Cancelled (in dollars per share) | $ / shares | 0 |
Outstanding at end of period (in dollars per share) | $ / shares | 56.14 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 56.05 |
Weighted average remaining life | |
Outstanding at end of period | 3 years 7 months 6 days |
Exercisable at end of period | 3 years 10 months 24 days |
Aggregate intrinsic value | |
Outstanding at end of period | $ | $ 6 |
Exercisable at end of period | $ | $ 4 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019USD ($) | May 06, 2019contract | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | ||||
Accounts receivable | $ 175,257 | $ 182,600 | ||
Allowance for doubtful accounts | 18,474 | $ 7,555 | ||
GCI Holdings | Customer | ||||
Loss Contingencies [Line Items] | ||||
Number of service contracts that got denied funding | contract | 2 | |||
Accounts receivable | $ 21,300 | |||
Allowance for doubtful accounts | 21,300 | |||
Bad debt expense | $ 21,300 |
Information About the Company_3
Information About the Company's Operating Segments - (Performance Measures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 217,566 | $ 233,490 | $ 435,302 | $ 294,694 |
GCI Holdings | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 210,979 | 227,781 | 424,190 | 284,573 |
GCI Holdings | Lease, grant, and revenue from subsidies | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 22,901 | 25,321 | 45,442 | 30,888 |
GCI Holdings | Consumer Revenue | Wireless | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 27,505 | 28,966 | 54,997 | 36,728 |
GCI Holdings | Consumer Revenue | Data | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 41,457 | 39,243 | 82,635 | 49,269 |
GCI Holdings | Consumer Revenue | Video | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 21,045 | 22,146 | 42,061 | 27,908 |
GCI Holdings | Consumer Revenue | Voice | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 4,321 | 4,710 | 8,782 | 5,878 |
GCI Holdings | Business Revenue | Wireless | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 19,393 | 21,391 | 37,777 | 26,818 |
GCI Holdings | Business Revenue | Data | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 63,733 | 76,223 | 131,843 | 94,654 |
GCI Holdings | Business Revenue | Video | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 3,988 | 3,487 | 7,813 | 4,509 |
GCI Holdings | Business Revenue | Voice | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 6,636 | 6,294 | 12,840 | 7,921 |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 6,587 | $ 5,709 | $ 11,112 | $ 10,121 |
Information About the Company_4
Information About the Company's Operating Segments - (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Receivables | $ 206,000 | $ 206,000 | ||
Deferred revenue | 38,000 | 38,000 | ||
Liberty Broadband | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 3,747 | $ 3,371 | $ 7,205 | $ 15,162 |
Information About the Company_5
Information About the Company's Operating Segments - (Remaining Performance Obligation) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 111 |
Revenue, remaining performance obligation, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 205 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 139 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 97 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 86 |
Revenue, remaining performance obligation, period | 1 year |
Information About the Company_6
Information About the Company's Operating Segments - (Adjusted OIBDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA | $ 61,399 | $ 74,115 | $ 100,746 | $ 88,203 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA | 57,225 | 71,339 | 93,455 | 89,987 |
Operating Segments | GCI Holdings | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA | 66,121 | 78,915 | 110,592 | 98,663 |
Operating Segments | Liberty Broadband | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA | (4,174) | (2,776) | (7,291) | 1,784 |
Operating Segments | Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA | (4,722) | (4,800) | (9,846) | (10,460) |
Consolidation, Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted OIBDA | $ 4,174 | $ 2,776 | $ 7,291 | $ (1,784) |
Information About the Company_7
Information About the Company's Operating Segments - (Other Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 10,178,562 | $ 8,226,169 |
Investments accounted for using the equity method | 169,795 | $ 177,030 |
Capital expenditures | 70,866 | |
Operating Segments | GCI Holdings | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,349,788 | |
Investments accounted for using the equity method | 608 | |
Capital expenditures | 69,979 | |
Operating Segments | Liberty Broadband | ||
Segment Reporting Information [Line Items] | ||
Total assets | 12,107,169 | |
Investments accounted for using the equity method | 12,023,742 | |
Capital expenditures | 50 | |
Operating Segments | Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 6,828,774 | |
Investments accounted for using the equity method | 169,187 | |
Capital expenditures | 887 | |
Consolidation, Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | (12,107,169) | |
Investments accounted for using the equity method | (12,023,742) | |
Capital expenditures | $ (50) |
Information About the Company_8
Information About the Company's Operating Segments - (Reconciliation of Segment Adjusted OIBDA to Operating Income and Earnings (Loss) from Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Consolidated segment Adjusted OIBDA | $ 61,399 | $ 74,115 | $ 100,746 | $ 88,203 |
Stock‑based compensation | (6,754) | (7,929) | (12,385) | (13,165) |
Depreciation and amortization | (65,891) | (64,388) | (133,569) | (80,409) |
Insurance proceeds and restructuring, net | (4,218) | 0 | (1,718) | 0 |
Operating income (loss) | (15,464) | 1,798 | (46,926) | (5,371) |
Interest expense | (36,284) | (32,378) | (69,832) | (40,051) |
Share of earnings (loss) of affiliates, net | (1,068) | 10,350 | (4,364) | 7,858 |
Realized and unrealized gains (losses) on financial instruments, net | 744,170 | (459,207) | 1,848,605 | (559,405) |
Other, net | 9,754 | (2,631) | 10,545 | (2,387) |
Earnings (loss) before income taxes | $ 701,108 | $ (482,068) | $ 1,738,028 | $ (599,356) |
Uncategorized Items - llc10q6-3
Label | Element | Value |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 126,627,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 170,741,000 |