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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2018
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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England and Wales
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98-1112770
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Griffin House, 161 Hammersmith Rd, London, United Kingdom
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W6 8BS
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(Address of principal executive offices)
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(Zip Code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Liberty Global Class A Ordinary Shares, nominal value $0.01 per share
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Nasdaq Global Select Market
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Liberty Global Class B Ordinary Shares, nominal value $0.01 per share
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Nasdaq Global Select Market
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Liberty Global Class C Ordinary Shares, nominal value $0.01 per share
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Nasdaq Global Select Market
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Large Accelerated Filer
þ
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Accelerated Filer
¨
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Non-Accelerated Filer
¨
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Smaller Reporting Company
¨
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Emerging Growth Company
¨
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Page
Number
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Mine Safety Disclosures
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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Item 16.
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Form 10-K Summary
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Brand
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Entity
|
|
Location
|
|
Ownership
|
|
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Virgin Media
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United Kingdom & Ireland
|
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100.0%
|
|
|
Unitymedia
|
|
Germany
|
|
100.0%
|
|
|
Telenet
|
|
Belgium & Luxembourg
|
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59.7%
|
|
|
UPC Holding
|
|
Switzerland, Poland, Hungary, Romania, Czech Republic, Slovakia
|
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100.0%
|
|
|
VodafoneZiggo
|
|
Netherlands
|
|
50.0%
|
•
|
On June 19, 2017, Telenet Group Holding N.V. (
Telenet
) acquired Coitel Brabant sprl, operating under the brand name SFR BeLux (
SFR BeLux
), which provided broadband operations in Belgium (Brussels and Wallonia) and Luxembourg.
|
•
|
On May 16, 2016, we acquired Cable & Wireless Communications Limited (
C&W
), a provider of telecommunication services, including mobile and high-speed broadband, focused in Latin America and the Caribbean. In connection with the
Split-off Transaction
referenced below under
—Dispositions
, we transferred
C&W
to Liberty Latin America Ltd. (
Liberty Latin America
).
|
•
|
On February 11, 2016,
Telenet
acquired BASE Company N.V. (
BASE
), the third-largest mobile network operator in Belgium.
|
•
|
On June 3, 2015, we acquired, together with investment funds affiliated with Searchlight Capital Partners, L.P., Choice Cable TV, a cable and broadband services provider in Puerto Rico, which was integrated into the operations of Liberty Cablevision of Puerto Rico LLC. In connection with the
Split-off Transaction
referenced below under —
Dispositions
, we transferred Liberty Cablevision of Puerto Rico LLC to
Liberty Latin America
.
|
•
|
In November 2014, we gained control of Ziggo Holding B.V. (
Ziggo
), a provider of video, broadband internet, fixed-line telephony and mobile services in the Netherlands, and integrated
Ziggo
into our Netherlands broadband operations. This business was contributed to form the
VodafoneZiggo JV
(defined below), a 50:50 joint venture, on December 31, 2016.
|
•
|
On July 31, 2018, we completed the sale of our Austrian operations (
UPC Austria
) to Deutsche Telekom AG (
Deutsche Telekom
). In connection with the sale of
UPC Austria
, we have agreed to provide certain transitional services to
Deutsche Telekom
for a period of up to four years. These services principally comprise network and information technology-related functions.
|
•
|
On December 29, 2017, we effected the split-off of our
LiLAC Group
by distributing 100% of the common shares of
Liberty Latin America
to holders of our then LiLAC ordinary shares. The “
LiLAC Group
” consisted of our businesses, assets and liabilities in Latin America and the Caribbean, including
C&W
, VTR.com SpA, a 60% interest in Liberty Cablevision of Puerto Rico LLC and related cash and cash equivalents and indebtedness. Following such distribution, the
LiLAC Shares
were redesignated as deferred shares (with virtually no economic rights) and subsequently canceled. Also,
Liberty Latin America
became a separate publicly traded company.
|
•
|
On December 31, 2016, our company and Vodafone Group Plc (
Vodafone
) contributed our respective operations in the Netherlands to VodafoneZiggo Group Holding B.V., a 50:50 joint venture (referred to herein as the
VodafoneZiggo JV
). We treat the
VodafoneZiggo JV
as an equity investment.
|
•
|
On January 31, 2014, we sold substantially all of our programming interest held through Chellomedia B.V.
|
Title of shares
|
|
Number of shares
|
|
Average price paid per share*
|
|
Aggregate purchase price*
|
|||||
|
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|
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|
in millions
|
|||||
|
|
|
|
|
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|
|||||
Liberty Global Class A
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15,649,900
|
|
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$
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29.67
|
|
|
$
|
464.4
|
|
|
Liberty Global Class C
|
54,211,059
|
|
|
$
|
28.51
|
|
|
$
|
1,545.6
|
|
•
|
economic and business conditions and industry trends in the countries in which we or our affiliates operate;
|
•
|
the competitive environment in the industries in the countries in which we or our affiliates operate, including competitor responses to our products and services;
|
•
|
fluctuations in currency exchange rates and interest rates;
|
•
|
instability in global financial markets, including sovereign debt issues and related fiscal reforms;
|
•
|
consumer disposable income and spending levels, including the availability and amount of individual consumer debt;
|
•
|
changes in consumer television viewing preferences and habits;
|
•
|
consumer acceptance of our existing service offerings, including our cable television, broadband internet, fixed-line telephony, mobile and business service offerings, and of new technology, programming alternatives and other products and services that we may offer in the future;
|
•
|
our ability to manage rapid technological changes;
|
•
|
our ability to maintain or increase the number of subscriptions to our cable television, broadband internet, fixed-line telephony and mobile service offerings and our average revenue per household;
|
•
|
our ability to provide satisfactory customer service, including support for new and evolving products and services;
|
•
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our ability to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers;
|
•
|
the impact of our future financial performance, or market conditions generally, on the availability, terms and deployment of capital;
|
•
|
changes in, or failure or inability to comply with, government regulations in the countries in which we or our affiliates operate and adverse outcomes from regulatory proceedings;
|
•
|
government intervention that requires opening our broadband distribution networks to competitors, such as the obligations imposed in Belgium;
|
•
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our ability to obtain regulatory approval and satisfy other conditions necessary to close acquisitions and dispositions (including the pending dispositions of the
Vodafone Disposal Group
and UPC Switzerland) and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions;
|
•
|
our ability to successfully acquire new businesses and, if acquired, to integrate, realize anticipated efficiencies from, and implement our business plan with respect to, the businesses we have acquired or that we expect to acquire;
|
•
|
changes in laws or treaties relating to taxation, or the interpretation thereof, in the
U.K.
, the
U.S.
or in other countries in which we or our affiliates operate;
|
•
|
changes in laws and government regulations that may impact the availability and cost of capital and the derivative instruments that hedge certain of our financial risks;
|
•
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the ability of suppliers and vendors (including our third-party wireless network providers under our mobile virtual network operator (
MVNO
) arrangements) to timely deliver quality products, equipment, software, services and access;
|
•
|
the availability of attractive programming for our video services and the costs associated with such programming, including retransmission and copyright fees payable to public and private broadcasters;
|
•
|
uncertainties inherent in the development and integration of new business lines and business strategies;
|
•
|
our ability to adequately forecast and plan future network requirements, including the costs and benefits associated with the planned
Network Extensions
;
|
•
|
the availability of capital for the acquisition and/or development of telecommunications networks and services;
|
•
|
problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire;
|
•
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the leakage of sensitive customer data;
|
•
|
the outcome of any pending or threatened litigation;
|
•
|
the loss of key employees and the availability of qualified personnel;
|
•
|
changes in the nature of key strategic relationships with partners and joint venturers;
|
•
|
our equity capital structure; and
|
•
|
events that are outside of our control, such as political unrest in international markets, terrorist attacks, malicious human acts, natural disasters, pandemics and other similar events.
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|
Homes
Passed
(1)
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Two-way
Homes
Passed
(2)
|
|
Cable Customer
Relationships
(3)
|
|
Total
RGUs
(4)
|
|
Video
|
|
|
|
|
|
|
|
|||||||||||||||||
Basic Video Subscribers
(5)
|
|
Enhanced Video
Subscribers
(6)
|
|
DTH
Subscribers
(7)
|
|
Total
Video
|
|
Internet Subscribers
(8)
|
|
Telephony Subscribers
(9)
|
|
|
Mobile Subscribers (10)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
United Kingdom
|
14,417,300
|
|
|
14,410,300
|
|
|
5,509,400
|
|
|
13,667,800
|
|
|
—
|
|
|
3,872,000
|
|
|
—
|
|
|
3,872,000
|
|
|
5,224,600
|
|
|
4,571,200
|
|
|
|
3,039,500
|
|
Belgium
|
3,350,700
|
|
|
3,350,700
|
|
|
2,115,000
|
|
|
4,853,800
|
|
|
201,200
|
|
|
1,738,700
|
|
|
—
|
|
|
1,939,900
|
|
|
1,657,800
|
|
|
1,256,100
|
|
|
|
2,731,000
|
|
Switzerland (11)
|
2,338,200
|
|
|
2,338,200
|
|
|
1,115,800
|
|
|
2,302,900
|
|
|
437,200
|
|
|
645,800
|
|
|
—
|
|
|
1,083,000
|
|
|
700,300
|
|
|
519,600
|
|
|
|
146,300
|
|
Ireland
|
923,000
|
|
|
890,500
|
|
|
437,200
|
|
|
999,100
|
|
|
4,500
|
|
|
266,600
|
|
|
—
|
|
|
271,100
|
|
|
375,700
|
|
|
352,300
|
|
|
|
81,500
|
|
Poland
|
3,463,800
|
|
|
3,408,900
|
|
|
1,447,800
|
|
|
3,052,700
|
|
|
180,500
|
|
|
1,042,700
|
|
|
—
|
|
|
1,223,200
|
|
|
1,175,200
|
|
|
654,300
|
|
|
|
3,200
|
|
Slovakia
|
613,900
|
|
|
599,100
|
|
|
194,100
|
|
|
391,200
|
|
|
27,700
|
|
|
142,300
|
|
|
—
|
|
|
170,000
|
|
|
136,800
|
|
|
84,400
|
|
|
|
—
|
|
Total continuing operations
|
25,106,900
|
|
|
24,997,700
|
|
|
10,819,300
|
|
|
25,267,500
|
|
|
851,100
|
|
|
7,708,100
|
|
|
—
|
|
|
8,559,200
|
|
|
9,270,400
|
|
|
7,437,900
|
|
|
|
6,001,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Germany
|
13,136,200
|
|
|
13,060,200
|
|
|
7,175,900
|
|
|
13,279,300
|
|
|
4,675,500
|
|
|
1,607,500
|
|
|
—
|
|
|
6,283,000
|
|
|
3,615,500
|
|
|
3,380,800
|
|
|
|
283,300
|
|
Romania
|
3,153,800
|
|
|
3,118,000
|
|
|
965,900
|
|
|
2,086,300
|
|
|
222,000
|
|
|
698,600
|
|
|
—
|
|
|
920,600
|
|
|
592,400
|
|
|
573,300
|
|
|
|
—
|
|
Hungary
|
1,828,000
|
|
|
1,810,600
|
|
|
862,900
|
|
|
2,063,400
|
|
|
68,300
|
|
|
623,600
|
|
|
—
|
|
|
691,900
|
|
|
694,400
|
|
|
677,100
|
|
|
|
109,900
|
|
Czech Republic
|
1,549,100
|
|
|
1,529,300
|
|
|
616,400
|
|
|
1,239,600
|
|
|
170,300
|
|
|
369,200
|
|
|
—
|
|
|
539,500
|
|
|
506,100
|
|
|
194,000
|
|
|
|
—
|
|
DTH
|
—
|
|
|
—
|
|
|
780,800
|
|
|
803,200
|
|
|
—
|
|
|
—
|
|
|
780,800
|
|
|
780,800
|
|
|
11,200
|
|
|
11,200
|
|
|
|
—
|
|
Total discontinued operations
|
19,667,100
|
|
|
19,518,100
|
|
|
10,401,900
|
|
|
19,471,800
|
|
|
5,136,100
|
|
|
3,298,900
|
|
|
780,800
|
|
|
9,215,800
|
|
|
5,419,600
|
|
|
4,836,400
|
|
|
|
393,200
|
|
(1)
|
Homes Passed are homes, residential multiple dwelling units or commercial units that can be connected to our networks without materially extending the distribution plant, except for
DTH
homes. Certain of our Homes Passed counts are based on census data that can change based on either revisions to the data or from new census results. We do not count homes passed for
DTH
. Due to the fact that we do not own the partner networks (defined below) used in Switzerland (see note 10 below), we do not report homes passed for Switzerland’s partner networks.
|
(2)
|
Two-way Homes Passed are Homes Passed by those sections of our networks that are technologically capable of providing two-way services, including video, internet and telephony services.
|
(3)
|
Cable Customer Relationships are the number of customers who receive at least one of our video, internet or telephony services that we count as Revenue Generating Units (
RGU
s
), without regard to which or to how many services they subscribe. Cable Customer Relationships generally are counted on a unique premises basis. Accordingly, if an individual receives our services in two premises (e.g., a primary home and a vacation home), that individual generally will count as two Cable Customer Relationships. We exclude mobile-only customers from Cable Customer Relationships.
|
(4)
|
RGU
is separately a Basic Video Subscriber, Enhanced Video Subscriber,
DTH
Subscriber, Internet Subscriber or Telephony Subscriber (each as defined and described below). A home, residential multiple dwelling unit, or commercial unit may contain one or more
RGU
s. For example, if a residential customer in our
U.K.
market subscribed to our enhanced video service, fixed-line telephony service and broadband internet service, the customer would constitute three
RGU
s. Total
RGU
s is the sum of Basic Video, Enhanced Video,
DTH
, Internet and Telephony Subscribers.
RGU
s generally are counted on a unique premises basis such that a given premises does not count as more than one
RGU
for any given service. On the other hand, if an individual receives one of our services in two premises (e.g., a primary home and a vacation home), that individual will count as two
RGU
s for that service. Each bundled cable, internet or telephony service is counted as a separate
RGU
regardless of the nature of any bundling discount or promotion. Non-paying subscribers are counted as subscribers during their free promotional service period. Some of these subscribers may choose to disconnect after their free service period. Services offered without charge on a long-term basis (e.g., VIP subscribers or free service to employees) generally are not counted as
RGU
s. We do not include subscriptions to mobile services in our externally reported
RGU
counts. In this regard, our
December 31, 2018
RGU
counts exclude our separately reported postpaid and prepaid mobile subscribers.
|
(5)
|
Basic Video Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network either via an analog video signal or via a digital video signal without subscribing to any recurring monthly service that requires the use of encryption-enabling technology. Encryption-enabling technology includes smart cards, or other integrated or virtual technologies that we use to provide our enhanced service offerings. We count
RGU
s on a unique premises basis. In other words, a subscriber with multiple outlets in one premises is counted as one
RGU
and a subscriber with two homes and a subscription to our video service at each home is counted as two
RGU
s. In Europe, we have approximately 194,600 “lifeline” customers that are counted on a per connection basis, representing the least expensive regulated tier of video cable service, with only a few channels.
|
(6)
|
Enhanced Video Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network or through a partner network via a digital video signal while subscribing to any recurring monthly service that requires the use of encryption-enabling technology. Enhanced Video Subscribers are counted on a unique premises basis. For example, a subscriber with one or more set-top boxes that receives our video service in one premises is generally counted as just one subscriber. An Enhanced Video Subscriber is not counted as a Basic Video Subscriber. As we migrate customers from basic to enhanced video services, we report a decrease in our Basic Video Subscribers equal to the increase in our Enhanced Video Subscribers. Subscribers to enhanced video services provided by our operations in Switzerland over partner networks receive basic video services from the partner networks as opposed to our operations.
|
(7)
|
DTH
Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our video programming broadcast directly via a geosynchronous satellite.
|
(8)
|
Internet Subscriber is a home, residential multiple dwelling unit or commercial unit that receives internet services over our networks, or that we service through a partner network. In Switzerland, we offer a 2 Mbps internet service to our Basic and Enhanced Video Subscribers without an incremental recurring fee. Our Internet Subscribers in Switzerland include 76,300 subscribers who have requested and received this service.
|
(9)
|
Telephony Subscriber is a home, residential multiple dwelling unit or commercial unit that receives voice services over our networks, or that we service through a partner network. Telephony Subscribers exclude mobile telephony subscribers. In Switzerland, we offer a basic phone service to our Basic and Enhanced Video Subscribers without an incremental recurring fee. Our Telephony Subscribers in Switzerland include 149,500 subscribers who have requested and received this service.
|
(10)
|
Pursuant to service agreements, Switzerland offers enhanced video, broadband internet and telephony services over networks owned by third-party cable operators (“
partner networks
”). A partner network
RGU
is only recognized if there is a direct billing relationship with the customer. At
December 31, 2018
, Switzerland’s partner networks account for 126,200 Customer Relationships, 298,400 RGUs, 107,000 Enhanced Video Subscribers, 109,000 Internet Subscribers, and 82,400 Telephony Subscribers.
|
(11)
|
Our Mobile Subscriber count represents the number of active subscriber identification module (
SIM
) cards in service rather than services provided. For example, if a Mobile Subscriber has both a data and voice plan on a smartphone this would equate to one Mobile
|
|
Continuing Operations
|
|
Discontinued Operations
|
||||||||||||||||
|
U.K.
|
|
Belgium
|
|
Switzerland
|
|
Ireland
|
|
Poland
|
|
Slovakia
|
|
Germany
|
|
Hungary
|
|
Romania
|
|
Czech Republic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Penetration:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cable television penetration (1)
|
27
|
|
58
|
|
46
|
|
29
|
|
35
|
|
28
|
|
48
|
|
38
|
|
29
|
|
35
|
Enhanced video penetration (2)
|
100
|
|
90
|
|
60
|
|
98
|
|
85
|
|
84
|
|
26
|
|
90
|
|
76
|
|
68
|
Broadband internet penetration (3)
|
36
|
|
49
|
|
30
|
|
42
|
|
34
|
|
23
|
|
28
|
|
38
|
|
19
|
|
33
|
Fixed telephony penetration (3)
|
32
|
|
37
|
|
22
|
|
40
|
|
19
|
|
14
|
|
26
|
|
37
|
|
18
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Double-play penetration (4)
|
19
|
|
21
|
|
16
|
|
35
|
|
33
|
|
23
|
|
14
|
|
14
|
|
12
|
|
53
|
Triple-play penetration (4)
|
64
|
|
54
|
|
45
|
|
47
|
|
39
|
|
39
|
|
35
|
|
62
|
|
52
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-Mobile Convergence penetration (5)
|
20
|
|
41
|
|
14
|
|
11
|
|
—
(6)
|
|
—
|
|
5
|
|
11
|
|
—
|
|
—
|
(1)
|
Percentage of total homes passed that subscribe to cable television services (Basic Video or Enhanced Video).
|
(2)
|
Percentage of cable television subscribers (Basic Video and Enhanced Video Subscribers) that are Enhanced Video Subscribers.
|
(3)
|
Percentage of two-way homes passed that subscribe to broadband internet or fixed-line telephony services, as applicable.
|
(4)
|
Percentage of total customers that subscribe to two services (
double-play
customers) or three services (
triple-play
customers) offered by our operations (video, broadband internet and fixed-line telephony).
|
(5)
|
Fixed-Mobile Convergence penetration represents the number of customers who subscribe to both our internet service and our postpaid mobile service, divided by the number of customers who subscribe to our internet service.
|
(6)
|
Fixed-Mobile Convergence penetration in Poland is less than 1%.
|
|
Continuing Operations
|
|
Discontinued Operations
|
||||||||||||||||
|
U.K.
|
|
Belgium
|
|
Switzerland
|
|
Ireland
|
|
Poland
|
|
Slovakia
|
|
Germany
|
|
Hungary
|
|
Romania
|
|
Czech Republic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Video services (excluding DTH):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latest Next Generation Video Platform
|
TiVo/V6
|
|
Digital TV
(5)
|
|
Horizon/Eos
|
|
Horizon
|
|
Horizon
|
|
Horizon Lite
(5)
|
|
Horizon
|
|
Horizon Lite
(5)
|
|
Horizon Lite
(5)
|
|
Horizon/Horizon Lite
(5)
|
Number of Next Generation Video percentage
(1)
|
96
|
|
90
|
|
32
|
|
70
|
|
53
|
|
64
|
|
12
|
|
35
|
|
17
|
|
51
|
Availability of Replay TV
|
—
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
—
|
|
X
|
|
X
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadband internet service:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum download speed offered (Mbps)
|
350
|
|
400
(4)
|
|
500
|
|
360
(4)
|
|
500
(4)(6)
|
|
500
|
|
400
(6)
|
|
500
|
|
500
|
|
500
|
Bandwidth percentage
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
at least 860 MHz
|
76
|
|
79
|
|
100
|
|
63
|
|
100
|
|
99
|
|
99
|
|
70
|
|
98
|
|
99
|
750 MHz to 859 MHz
|
19
|
|
—
|
|
—
|
|
33
|
|
—
(8)
|
|
—
|
|
—
|
|
26
|
|
—
(8)
|
|
—
(8)
|
less than 750 MHz
|
5
|
|
21
|
|
—
|
|
4
|
|
—
(8)
|
|
1
|
|
1
|
|
4
|
|
2
|
|
1
|
Mobile services (in 000’s):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Mobile SIM cards
(3)
|
3,040
|
|
2,731
|
|
146
|
|
81
|
|
3
(7)
|
|
—
|
|
283
|
|
110
|
|
—
|
|
—
|
Prepaid
|
377
|
|
489
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Postpaid
|
2,663
|
|
2,242
|
|
146
|
|
81
|
|
3
|
|
—
|
|
283
|
|
110
|
|
—
|
|
—
|
(1)
|
Percentage of total cable television subscribers that have next generation video.
|
(2)
|
Percentage of total homes passed served by a network with the indicated bandwidth.
|
(3)
|
Represents the number of active
SIM
cards in service. See note 10 to
Consolidated Operating Data
table above for how these are counted.
|
(4)
|
For business customers, speeds of up to: 500 Mbps in Belgium, 400 Mbps in Ireland and 600 Mbps in Poland, are available.
|
(5)
|
Refers to an upgraded set-top box system that provides several features of
Horizon TV
(defined below) in the home.
|
(6)
|
Speeds of up to 1 Gbps available in limited areas.
|
(7)
|
Limited to legacy subscribers.
|
(8)
|
Less than 1%.
|
•
|
VoIP
and circuit-switch telephony, hosted private branch exchange solutions and conferencing options;
|
•
|
data services for internet access, virtual private networks and high capacity point-to-point services;
|
•
|
wireless services for mobile voice and data, as well as managed WiFi networks;
|
•
|
video programming packages and select channel lineups for targeted industries; and
|
•
|
value added services, including webhosting, managed security systems and storage and cloud enabled software.
|
•
|
recapturing bandwidth and optimizing our networks by:
|
◦
|
increasing the number of nodes in our markets;
|
◦
|
increasing the bandwidth of our hybrid fiber coaxial cable network to 1 GHz;
|
◦
|
converting analog channels to digital;
|
◦
|
bonding additional DOCSIS 3.0 channels;
|
◦
|
replacing copper lines with modern optic fibers; and
|
◦
|
using digital compression technologies.
|
•
|
freeing spectrum for high-speed internet,
VoD
and other services by encouraging customers to move from analog to digital services;
|
•
|
increasing the efficiency of our networks by moving headend functions (encoding, transcoding and multiplexing) to cloud storage systems;
|
•
|
enhancing our network to accommodate business services;
|
•
|
using wireless technologies to extend our services outside of the home;
|
•
|
offering remote access to our video services through laptops, smart phones and tablets;
|
•
|
expanding the availability of
Horizon TV
and Virgin TV Go, as well as Horizon 4, and related products and developing and introducing online media sharing and streaming or cloud-based video; and
|
•
|
testing new technologies.
|
•
|
proposition (exceeding our customers' entertainment desires and expectations);
|
•
|
product (delivering the best content available);
|
•
|
procurement (investment in the best brands, shows and sports); and
|
•
|
partnering (strategic alignment, acquisitions and growth opportunities).
|
•
|
Virgin Media
.
Virgin Media
’s digital television services compete primarily with
FTA
television and with
Sky
, the primary pay satellite television provider.
Sky
offers competitively priced triple-play and quad-play services in the
U.K.
and Ireland. Other significant competitors are BT and TalkTalk Telecom Group plc (
TalkTalk
) in the
U.K.
and Eircom Limited in Ireland, each of which offer triple-play services, as well as
IPTV
video services. Each of these competitors have multimedia home gateways.
|
•
|
Telenet
.
Telenet
’s principal competitor is
Proximus
, the incumbent telecommunications operator, which has interactive digital television, replay television,
VoD
and
HD
service as part of its video offer, as well as a remote access service.
Proximus
offers customers a wide range of both individual and bundled services at competitive prices. Also,
Telenet
and other Belgian cable operators must give alternative providers access to their cable networks. Orange Belgium N.V. (
Orange Belgium
) gained such access in 2016 and currently offers its mobile subscribers a dual play bundle, including enhanced video and broadband internet services.
Telenet
may face increased competition from other providers of video services who take advantage of the wholesale access and may be able to offer triple- and quad-play services. For more information on wholesale access, see
Regulatory Matters—Belgium.
|
•
|
UPC Switzerland
.
Our main competitor in Switzerland is
Swisscom
, the incumbent telecommunications operator, which provides
IPTV
services over
DSL
,
VDSL
and
FTTx
networks.
Swisscom
offers
VoD
services,
DVR
and replay functionality and
HD
channels, as well as the functionality to allow remote access to its video services, and has exclusive rights to distribute certain sports programming. Sunrise is also a significant competitor with its fixed-mobile converged bundles. In this saturated market, price competition is a significant factor. To compete effectively in Switzerland, UPC Switzerland is promoting Horizon 4 (marketed as “UPC TV”), as well as
Horizon TV
, and related family of products together with Replay TV and
VoD
, giving subscribers the ability to personalize their programming and viewing preferences. UPC Switzerland also has its own exclusive sports channel,
My Sports
, and aggregates third-party apps (e.g. Netflix and YouTube). It also uses its high-speed internet of up to 50, 200 or 500 Mbps to promote its extended digital tier bundles and offer mobile services.
|
•
|
Virgin Media
.
In the
U.K.
, we have a number of significant competitors in the market for broadband internet services, including fixed-line incumbent telecommunications providers. Of these broadband internet providers, BT is the largest, which provides broadband internet access services to both its own retail customers and third-party retail providers over its own
DSL
network. BT has announced its intention to rollout ultrafast speeds of up to at least 300 Mbps by the end of 2020 to up to 5.7 million premises using G.fast technology, a
DSL
standard applied over copper local loops. BT has also set out its intention to rollout a
FTTx
service supporting 1 Gbps to three million homes and businesses by 2020 with a target to cover 10 million homes by 2025. As a result of these objectives, BT has launched a range of ultrafast packages offering speeds of up to 150 Mbps and 300 Mbps, respectively, using a combination of G.fast and
FTTx
technology, which are currently available to two million
U.K.
homes.
|
•
|
Telenet
.
In the Flanders region of Belgium,
Telenet
is the leading provider of residential broadband internet services.
Telenet
’s primary competitor is the
DSL
service provider
Proximus
.
Proximus
is a well-established competitor offering quad-play bundles.
Proximus
’
DSL
and
VDSL
services provide download speeds up to 100 Mbps. Mobile broadband penetration continues to increase, reaching nearly 80% of the total population by year-end 2017 based on the BIPT 2017 Annual Report. Similar to its video services, Telenet faces competition in the provision of internet services from other providers who have wholesale access to
Telenet
’s cable network. Through such access,
Orange Belgium
currently offers its mobile subscribers a dual-play bundle including enhanced video and broadband internet services. In this competitive market, Telenet is using its fixed-mobile converged offers to promote its internet and other services.
|
•
|
UPC Switzerland
.
In Switzerland,
Swisscom
is the largest provider of broadband internet services, and is UPC Switzerland’s primary competitor.
Swisscom
internet customers have access to its basic video content free of charge through its internet portal. It is also expanding its
FTTx
network and rolling out G.fast technology.
Swisscom
offers download speeds ranging from 40 Mbps to up to 1 Gbps.
Swisscom
’s internet speeds include 40 Mbps to 100 Mbps on its
VDSL
network and up to 1 Gbps in areas served by its
FTTx
network.
Swisscom
continues to expand its
FTTx
network to Switzerland households in our footprint, as well as in our partner network footprints. It has built its
FTTx
network in several cities in cooperation with municipality-owned utility companies and, where no cooperation agreement has been reached,
Swisscom
is building its own
FTTx
network. With respect to subscribers on the partner networks, UPC Switzerland competes with other service providers for the contracts to serve these subscribers. In this competitive market, UPC Switzerland increased it introductory speed to 50 Mbps and is promoting its broadband services through its bundled offers.
|
•
|
Licensing and Exclusivity
.
The Code, similar to the
Regulatory Framework
, requires Member States to abolish exclusivities on communication networks and services in their territory and allow operators into their markets based on a simple registration. The Code sets forth an exhaustive list of conditions that may be imposed on communication networks and services. Possible obligations include, among other things, financial charges for universal service or for the costs of regulation, environmental requirements, data privacy and other consumer protection rules, “must carry” obligations, provision of customer information to law enforcement agencies and access obligations.
|
•
|
Significant Market Power
.
Certain of the obligations allowed by the Code, similar to the
Regulatory Framework
, apply only to operators or service providers with
Significant Market Power
(defined below) in a relevant market. For example, the provisions of the Code allow the National Regulatory Authority (
NRA
) in
E.U.
Member States to mandate certain access obligations only for those operators and service providers that are deemed to have
Significant Market Power
. For
|
•
|
Video Services
.
The regulation of distribution, but not the content, of television services to the public is harmonized by the Code. Member States are allowed to impose on certain operators under their jurisdiction reasonable must carry obligations for the transmission of specified radio and television broadcast channels. Such obligations are required to be based on clearly defined general interest objectives, be proportionate and be transparent and subject to periodic review. We are subject to must carry regulations in all markets in which we operate. Must carry regulations are significantly different among Member States. In some cases, these obligations go beyond what we believe is allowable under the Code. To date, however, the European Commission has taken very limited steps to enforce
E.U.
law in this area, leaving must carry obligations intact in certain Member States. We do not expect the European Commission or the Member States to curtail such obligations in the foreseeable future.
|
•
|
Net Neutrality/Traffic Management/Roaming
.
In October 2015, the European Parliament adopted the regulation on the first
E.U.
-wide net neutrality regime. The regulation, which is directly applicable in all Member States, permits the provision of specialized services, optimized for specific content and subjects operators to reasonable traffic management requirements. The regulation also abolished roaming tariffs beginning in June 2017.
|
•
|
risks that relate to the competition we face and the technology used in our businesses;
|
•
|
risks that relate to our operating in overseas markets and being subject to foreign regulation;
|
•
|
risks that relate to certain financial matters; and
|
•
|
other risks, including risks that, among other things, relate to the obstacles that may be faced by anyone who may seek to acquire us.
|
•
|
fluctuations in foreign currency exchange rates;
|
•
|
difficulties in staffing and managing international operations;
|
•
|
potentially adverse tax consequences;
|
•
|
export and import restrictions, custom duties, tariffs and other trade barriers;
|
•
|
increases in taxes and governmental fees;
|
•
|
economic and political instability; and
|
•
|
changes in foreign and domestic laws and policies that govern operations of foreign-based companies.
|
•
|
impair our ability to use our bandwidth in ways that would generate maximum revenue and
Adjusted OIBDA
;
|
•
|
create a shortage of capacity on our networks, which could limit the types and variety of services we seek to provide our customers;
|
•
|
impact our ability to access spectrum for our mobile services;
|
•
|
strengthen our competitors by granting them access and lowering their costs to enter into our markets; and
|
•
|
have a significant adverse impact on our results of operations.
|
•
|
changes in foreign currency exchange rates and disruptions in the capital markets. For example, a sustained period of weakness in the British pound sterling or the euro could have an adverse impact on our liquidity, including our ability to fund repurchases of our equity securities and other
U.S.
dollar-denominated liquidity requirements;
|
•
|
legal uncertainty and potentially divergent national laws and regulations as the
U.K.
determines which
E.U.
laws and directives to replace or replicate, or where previously implemented by enactment of
U.K.
laws or regulations, to retain, amend or repeal; and
|
•
|
various geopolitical forces may impact the global economy and our business, including, for example, other
E.U.
member states (in particular those member states where we have operations) proposing referendums to, or electing to, exit the
E.U.
|
•
|
incur or guarantee additional indebtedness;
|
•
|
pay dividends or make other upstream distributions;
|
•
|
make investments;
|
•
|
transfer, sell or dispose of certain assets, including subsidiary stock;
|
•
|
merge or consolidate with other entities;
|
•
|
engage in transactions with us or other affiliates; or
|
•
|
create liens on their assets.
|
•
|
fund property and equipment additions or acquisitions that could improve their value;
|
•
|
meet their loan and capital commitments to their business affiliates;
|
•
|
invest in companies in which they would otherwise invest;
|
•
|
fund any operating losses or future development of their business affiliates;
|
•
|
obtain lower borrowing costs that are available from secured lenders or engage in advantageous transactions that monetize their assets; or
|
•
|
conduct other necessary or prudent corporate activities.
|
•
|
actual or anticipated fluctuations in our revenue and other operating results;
|
•
|
actual operating or financial results that vary from our guidance or the expectations of securities analysts and investors;
|
•
|
changes in expectations as to our future financial performance, including financial estimates by securities analysts and investors;
|
•
|
actual or anticipated future sales of our ordinary shares by us, our senior management or our other existing shareholders;
|
•
|
investor sentiment with respect to our competitors, our business partners, and our industry in general;
|
•
|
announcements by us or our competitors of significant services or features, technical innovations, acquisitions, strategic partnerships, joint ventures, or capital commitments;
|
•
|
changes in operating performance and stock market valuations of companies in our industry, including our competitors;
|
•
|
price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole;
|
•
|
media coverage of our business and financial performance; and
|
•
|
general domestic and international economic and political conditions.
|
•
|
authorizing a capital structure with multiple classes of ordinary shares; a Class B that entitles the holders to 10 votes per share; a Class A that entitles the holders to one vote per share; and a Class C that, except as otherwise required by applicable law, entitles the holders to no voting rights;
|
•
|
authorizing the issuance of “blank check” shares (both ordinary and preference), which could be issued by our board of directors to increase the number of outstanding shares and thwart a takeover attempt;
|
•
|
classifying our board of directors with staggered three-year terms, which may lengthen the time required to gain control of our board of directors, although under English law, shareholders of our company can remove a director without cause by ordinary resolution;
|
•
|
prohibiting shareholder action by written resolution, thereby requiring all shareholder actions to be taken at a meeting of the shareholders;
|
•
|
requiring the approval of 75% in value of the shareholders (or class of shareholders) and/or English court approval for certain statutory mergers or schemes of arrangements;
and
|
•
|
establishing advance notice requirements for nominations of candidates for election to our board of directors or for proposing matters that can be acted upon by shareholders at shareholder meetings.
|
Item 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Period
|
|
Total number
of shares
repurchased
|
|
Average
price
paid per
share (a)
|
|
Total number of shares
repurchased as part of
publicly-announced
programs
|
|
Value of shares that may yet be repurchased under the programs
|
||||
|
|
|
|
|
|
|
|
|
||||
October 1, 2018 through October 31, 2018:
|
|
|
|
|
|
|
|
|
||||
Class C
|
|
6,191,700
|
|
|
$
|
25.27
|
|
|
6,191,700
|
|
|
(b)
|
November 1, 2018 through November 30, 2018:
|
|
|
|
|
|
|
|
|
||||
Class C
|
|
4,180,400
|
|
|
$
|
24.32
|
|
|
4,180,400
|
|
|
(b)
|
December 1, 2018 through December 31, 2018:
|
|
|
|
|
|
|
|
|
||||
Class C
|
|
3,049,559
|
|
|
$
|
22.45
|
|
|
3,049,559
|
|
|
(b)
|
Total — October 1, 2018 through December 31, 2018:
|
|
|
|
|
|
|
|
|
||||
Class C
|
|
13,421,659
|
|
|
$
|
24.34
|
|
|
13,421,659
|
|
|
(b)
|
(a)
|
Average price paid per share includes direct acquisition costs.
|
(b)
|
As of
December 31, 2018
, the remaining amount authorized for share repurchases was
$566.2 million
.
|
|
December 31,
|
||||||||||||||||||
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Liberty Global - Class A
|
$
|
108.50
|
|
|
$
|
91.55
|
|
|
$
|
75.29
|
|
|
$
|
88.21
|
|
|
$
|
52.52
|
|
Liberty Global - Class B
|
$
|
110.64
|
|
|
$
|
88.66
|
|
|
$
|
68.59
|
|
|
$
|
77.53
|
|
|
$
|
45.80
|
|
Liberty Global - Class C
|
$
|
112.52
|
|
|
$
|
94.95
|
|
|
$
|
79.10
|
|
|
$
|
90.13
|
|
|
$
|
54.97
|
|
ICB 6500 Telecommunications
|
$
|
102.73
|
|
|
$
|
106.42
|
|
|
$
|
131.72
|
|
|
$
|
131.59
|
|
|
$
|
122.62
|
|
Nasdaq US Benchmark TR Index
|
$
|
112.46
|
|
|
$
|
113.00
|
|
|
$
|
127.70
|
|
|
$
|
155.01
|
|
|
$
|
146.57
|
|
|
December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
in millions
|
||||||||||||||||||
Summary Balance Sheet Data (a):
|
|
||||||||||||||||||
Investments
|
$
|
5,121.8
|
|
|
$
|
6,671.4
|
|
|
$
|
6,388.7
|
|
|
$
|
2,839.3
|
|
|
$
|
1,808.2
|
|
Property and equipment, net
|
$
|
13,878.9
|
|
|
$
|
14,149.0
|
|
|
$
|
12,235.4
|
|
|
$
|
15,676.6
|
|
|
$
|
17,257.2
|
|
Goodwill
|
$
|
13,715.8
|
|
|
$
|
14,354.1
|
|
|
$
|
12,763.9
|
|
|
$
|
21,801.0
|
|
|
$
|
23,281.1
|
|
Total assets (including discontinued operations)
|
$
|
53,153.6
|
|
|
$
|
57,596.8
|
|
|
$
|
68,684.1
|
|
|
$
|
67,645.2
|
|
|
$
|
72,665.2
|
|
Debt and capital lease obligations, including current portion
|
$
|
29,805.2
|
|
|
$
|
32,644.5
|
|
|
$
|
28,843.6
|
|
|
$
|
35,955.7
|
|
|
$
|
35,233.1
|
|
Total equity
|
$
|
4,148.3
|
|
|
$
|
6,393.0
|
|
|
$
|
14,732.0
|
|
|
$
|
10,174.3
|
|
|
$
|
14,116.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Year ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
in millions, except per share amounts
|
||||||||||||||||||
Summary Statement of Operations Data (a):
|
|
||||||||||||||||||
Revenue
|
$
|
11,957.9
|
|
|
$
|
11,276.4
|
|
|
$
|
13,731.1
|
|
|
$
|
13,680.0
|
|
|
$
|
13,306.3
|
|
Operating income
|
$
|
839.1
|
|
|
$
|
792.4
|
|
|
$
|
1,570.1
|
|
|
$
|
1,189.1
|
|
|
$
|
936.5
|
|
Earnings (loss) from continuing operations
|
$
|
(1,411.5
|
)
|
|
$
|
(2,350.0
|
)
|
|
$
|
1,650.3
|
|
|
$
|
(1,456.6
|
)
|
|
$
|
(1,239.3
|
)
|
Earnings (loss) from continuing operations attributable to Liberty Global shareholders
|
$
|
(1,532.0
|
)
|
|
$
|
(2,421.4
|
)
|
|
$
|
1,624.5
|
|
|
$
|
(1,546.3
|
)
|
|
$
|
(1,278.2
|
)
|
Basic earnings (loss) from continuing operations attributable to Liberty Global shareholders per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Liberty Global Shares (b)
|
$
|
(1.97
|
)
|
|
$
|
(2.86
|
)
|
|
$
|
1.83
|
|
|
$
|
(1.79
|
)
|
|
|
||
Old Liberty Global Shares (c)
|
|
|
|
|
|
|
$
|
(1.75
|
)
|
|
$
|
(1.60
|
)
|
||||||
Diluted earnings (loss) from continuing operations attributable to Liberty Global shareholders per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Liberty Global Shares (b)
|
$
|
(1.97
|
)
|
|
$
|
(2.86
|
)
|
|
$
|
1.81
|
|
|
$
|
(1.79
|
)
|
|
|
||
Old Liberty Global Shares (c)
|
|
|
|
|
|
|
$
|
(1.75
|
)
|
|
$
|
(1.60
|
)
|
(a)
|
We acquired
BASE
on February 11, 2016 and
Ziggo
on November 11, 2014. Our continuing operations also completed a number of less significant acquisitions during the years presented. On December 31, 2016, we completed the
VodafoneZiggo JV Transaction
, pursuant to which we contributed
VodafoneZiggo Holding
to the
VodafoneZiggo JV
. In addition, we acquired
C&W
on May 16, 2016 and a less significant cable and broadband services provider in Puerto Rico on June 3, 2015, each of which was attributed to the
LiLAC Group
. Effective December 31, 2017, we completed the
Split-off Transaction
, pursuant to which the businesses, assets and liabilities of the
LiLAC Group
were transferred to an independent publicly-traded company. Accordingly, the selected financial data included in this table presents the
LiLAC Group
as discontinued operations for all applicable periods. For information regarding our acquisitions and dispositions during the past three years, see notes
5
and
6
, respectively, to our consolidated financial statements.
|
(b)
|
The per share amounts presented for 2015 relate to the period from July 1, 2015 through December 31, 2015.
|
(c)
|
The per share amounts presented for 2015 relate to the period from January 1, 2015 through June 30, 2015. “Old
Liberty Global Shares
” refers to our Class A, Class B and Class C ordinary shares that were outstanding prior to being reclassified into
Liberty Global Shares
in connection with the July 1, 2015 distribution of
LiLAC Shares
, as further described in note
13
to our consolidated financial statements.
|
•
|
Overview.
This section provides a general description of our business and recent events.
|
•
|
Results of Operations.
This section provides an analysis of our results of operations for the years ended
December 31, 2018
,
2017
and
2016
.
|
•
|
Liquidity and Capital Resources.
This section provides an analysis of our corporate and subsidiary liquidity, consolidated statements of cash flows and contractual commitments.
|
•
|
Critical Accounting Policies, Judgments and Estimates.
This section discusses those material accounting policies that involve uncertainties and require significant judgment in their application.
|
•
|
Quantitative and Qualitative Disclosures about Market Risk.
This section provides discussion and analysis of the foreign currency, interest rate and other market risk that our company faces.
|
|
Year ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
|
|
pro forma
|
||||
|
in millions
|
||||||
|
|
||||||
Increase (decrease) to revenue:
|
|
|
|
||||
U.K./Ireland
|
$
|
34.3
|
|
|
$
|
(12.9
|
)
|
Belgium
|
(9.0
|
)
|
|
(3.7
|
)
|
||
Switzerland
|
1.0
|
|
|
(3.9
|
)
|
||
Central and Eastern Europe
|
(0.2
|
)
|
|
(1.0
|
)
|
||
Total increase (decrease) to revenue
|
$
|
26.1
|
|
|
$
|
(21.5
|
)
|
|
|
|
|
||||
Increase (decrease) to Adjusted OIBDA:
|
|
|
|
||||
U.K./Ireland
|
$
|
27.1
|
|
|
$
|
(26.1
|
)
|
Belgium
|
(9.0
|
)
|
|
(3.7
|
)
|
||
Switzerland
|
(0.2
|
)
|
|
(2.9
|
)
|
||
Central and Eastern Europe
|
(0.5
|
)
|
|
0.8
|
|
||
Total increase (decrease) to Adjusted OIBDA
|
$
|
17.4
|
|
|
$
|
(31.9
|
)
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
|
|
pro forma
|
|
|
|
|
|
|
|
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
6,875.1
|
|
|
$
|
6,385.8
|
|
|
$
|
489.3
|
|
|
7.7
|
|
|
$
|
249.5
|
|
|
3.9
|
|
Belgium
|
2,993.6
|
|
|
2,861.6
|
|
|
132.0
|
|
|
4.6
|
|
|
(35.7
|
)
|
|
(1.2
|
)
|
||||
Switzerland
|
1,326.0
|
|
|
1,366.2
|
|
|
(40.2
|
)
|
|
(2.9
|
)
|
|
(50.6
|
)
|
|
(3.7
|
)
|
||||
Central and Eastern Europe
|
492.2
|
|
|
466.5
|
|
|
25.7
|
|
|
5.5
|
|
|
4.5
|
|
|
1.0
|
|
||||
Central and Corporate (a)
|
274.2
|
|
|
189.4
|
|
|
84.8
|
|
|
44.8
|
|
|
59.9
|
|
|
28.9
|
|
||||
Intersegment eliminations
|
(3.2
|
)
|
|
(14.6
|
)
|
|
11.4
|
|
|
N.M.
|
|
|
11.4
|
|
|
N.M.
|
|
||||
Total
|
$
|
11,957.9
|
|
|
$
|
11,254.9
|
|
|
$
|
703.0
|
|
|
6.2
|
|
|
$
|
239.0
|
|
|
2.1
|
|
(a)
|
Amounts primarily include the revenue earned from transition and other services provided to the
VodafoneZiggo JV
and, during
2018
,
Deutsche Telekom
and
Liberty Latin America
. For additional information, see notes
6
and
7
to our consolidated financial statements.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase in residential cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
70.9
|
|
|
$
|
—
|
|
|
$
|
70.9
|
|
ARPU (b)
|
49.3
|
|
|
—
|
|
|
49.3
|
|
|||
Increase in residential cable non-subscription revenue (c)
|
—
|
|
|
6.6
|
|
|
6.6
|
|
|||
Total increase in residential cable revenue
|
120.2
|
|
|
6.6
|
|
|
126.8
|
|
|||
Increase (decrease) in residential mobile revenue (d)
|
(3.8
|
)
|
|
86.6
|
|
|
82.8
|
|
|||
Increase in B2B revenue (e)
|
28.3
|
|
|
4.1
|
|
|
32.4
|
|
|||
Increase in other revenue (f)
|
—
|
|
|
7.5
|
|
|
7.5
|
|
|||
Total organic increase
|
144.7
|
|
|
104.8
|
|
|
249.5
|
|
|||
Impact of FX
|
187.7
|
|
|
52.1
|
|
|
239.8
|
|
|||
Total
|
$
|
332.4
|
|
|
$
|
156.9
|
|
|
$
|
489.3
|
|
(a)
|
The increase in residential cable subscription revenue related to a change in the average number of
RGU
s is attributable to increases in the average number of broadband internet, video and fixed-line telephony
RGU
s.
|
(b)
|
The increase in residential cable subscription revenue related to a change in
ARPU
is attributable to (i) a net increase due to (a) higher
ARPU
from broadband internet services, (b) lower
ARPU
from fixed-line telephony services and (c) higher
ARPU
from video services and (ii) an improvement in
RGU
mix.
|
(c)
|
The increase in residential cable non-subscription revenue is primarily driven by changes in the
U.K.
, including the net effect of (i) increases in interconnect revenue and late fees and (ii) a decrease in cancellation revenue.
|
(d)
|
The decrease in residential mobile subscription revenue is primarily attributable to the net effect of (i) a decrease in the
U.K.
, due primarily to lower
ARPU
, and (ii) an increase in Ireland, mainly due to an increase in the average number of mobile subscribers. The increase in residential mobile non-subscription revenue is primarily due to an increase in revenue from mobile handset sales in the
U.K.
, which typically generate relatively low margins.
|
(e)
|
The increase in
B2B
subscription revenue is primarily due to an increase in the average number of broadband internet
SOHO
subscribers in the
U.K.
The increase in
B2B
non-subscription revenue is primarily driven by changes in the
U.K.
, including the net effect of (i) higher revenue related to business network services, (ii) a decrease in interconnect revenue, (iii) lower revenue from wholesale fixed-line telephony services and (iv) lower revenue from data services.
|
(f)
|
The increase in other revenue is primarily due to an increase in broadcasting revenue in Ireland.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase (decrease) in residential cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
(57.4
|
)
|
|
$
|
—
|
|
|
$
|
(57.4
|
)
|
ARPU (b)
|
20.2
|
|
|
—
|
|
|
20.2
|
|
|||
Decrease in residential cable non-subscription revenue (c)
|
—
|
|
|
(13.4
|
)
|
|
(13.4
|
)
|
|||
Total decrease
in residential cable revenue
|
(37.2
|
)
|
|
(13.4
|
)
|
|
(50.6
|
)
|
|||
Decrease in residential mobile revenue (d)
|
(26.9
|
)
|
|
(26.5
|
)
|
|
(53.4
|
)
|
|||
Increase in B2B revenue (e)
|
26.3
|
|
|
42.0
|
|
|
68.3
|
|
|||
Total organic increase (decrease)
|
(37.8
|
)
|
|
2.1
|
|
|
(35.7
|
)
|
|||
Impact of acquisitions
|
27.7
|
|
|
41.5
|
|
|
69.2
|
|
|||
Impact of disposals
|
(17.4
|
)
|
|
(11.6
|
)
|
|
(29.0
|
)
|
|||
Impact of FX
|
98.0
|
|
|
29.5
|
|
|
127.5
|
|
|||
Total
|
$
|
70.5
|
|
|
$
|
61.5
|
|
|
$
|
132.0
|
|
(a)
|
The decrease in residential cable subscription revenue related to a change in the average number of
RGU
s is attributable to declines in the average number of video, broadband internet and fixed-line telephony
RGU
s.
|
(b)
|
The increase in residential cable subscription revenue related to a change in
ARPU
is attributable to (i) the net effect of (a) higher
ARPU
from broadband internet and video services and (b) lower
ARPU
from fixed-line telephony services and (ii) an improvement in
RGU
mix.
|
(c)
|
The decrease in residential cable non-subscription revenue is primarily attributable to the net effect of (i) a decrease of $5.6 million related to adjustments recorded during
2017
to reflect the expected recovery of certain prior-period
VAT
payments, (ii) an increase in distribution revenue, (iii) a decrease in late fees and (iv) a decrease in revenue from equipment sales.
|
(d)
|
The decrease in residential mobile subscription revenue is primarily due to the net effect of (i) lower
ARPU
and (ii) an increase in the average number of mobile subscribers. The decrease in residential mobile non-subscription revenue is primarily attributable to decreases in (a) revenue from the sales of mobile handsets and other devices and (b) interconnect revenue.
|
(e)
|
The increase in
B2B
subscription revenue is attributable to (i) higher
ARPU
, as increases in mobile and video
SOHO
services were only partially offset by a decrease in broadband internet
SOHO
services, and (ii) an increase in the average number of
SOHO
subscribers, as increases in broadband internet and video
SOHO
subscribers were only partially offset by a decrease in mobile subscribers. The increase in
B2B
non-subscription revenue is primarily due to (a) higher revenue from wholesale services and (b) an increase in interconnect revenue.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Decrease in residential cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
(46.3
|
)
|
|
$
|
—
|
|
|
$
|
(46.3
|
)
|
ARPU (b)
|
(42.5
|
)
|
|
—
|
|
|
(42.5
|
)
|
|||
Increase in residential cable non-subscription revenue (c)
|
—
|
|
|
4.5
|
|
|
4.5
|
|
|||
Total increase (decrease) in residential cable revenue
|
(88.8
|
)
|
|
4.5
|
|
|
(84.3
|
)
|
|||
Increase
in residential mobile revenue (d)
|
14.9
|
|
|
0.9
|
|
|
15.8
|
|
|||
Increase in B2B revenue (e)
|
1.6
|
|
|
12.6
|
|
|
14.2
|
|
|||
Increase in other revenue
|
—
|
|
|
3.7
|
|
|
3.7
|
|
|||
Total organic increase (decrease)
|
(72.3
|
)
|
|
21.7
|
|
|
(50.6
|
)
|
|||
Impact of acquisitions
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|||
Impact of FX
|
7.5
|
|
|
1.9
|
|
|
9.4
|
|
|||
Total
|
$
|
(63.8
|
)
|
|
$
|
23.6
|
|
|
$
|
(40.2
|
)
|
(a)
|
The decrease in residential cable subscription revenue related to a change in the average number of
RGU
s is attributable to the net effect of (i) declines in the average number of video and broadband internet
RGU
s and (ii) an increase in the average number of fixed-line telephony
RGU
s.
|
(b)
|
The decrease in residential cable subscription revenue related to a change in
ARPU
is primarily attributable to lower
ARPU
from video, fixed-line telephony and broadband internet services.
|
(c)
|
The increase in residential cable non-subscription revenue is primarily attributable to the net effect of (i) a $13.6 million increase in distribution revenue associated with the September 2017 launch of our Swiss sports channels and (ii) a decrease of $6.4 million due to the impact of unclaimed customer credit accruals that were released during the first half of 2017.
|
(d)
|
The increase in residential mobile subscription revenue is primarily due to an increase in the average number of mobile subscribers.
|
(e)
|
The increase in
B2B
non-subscription revenue is primarily due to (i) an increase in interconnect revenue and (ii) higher revenue from data services.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase (decrease) in residential cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
2.7
|
|
ARPU (b)
|
(4.4
|
)
|
|
—
|
|
|
(4.4
|
)
|
|||
Decrease in residential cable non-subscription revenue
|
—
|
|
|
(2.6
|
)
|
|
(2.6
|
)
|
|||
Total decrease in residential cable revenue
|
(1.7
|
)
|
|
(2.6
|
)
|
|
(4.3
|
)
|
|||
Increase in B2B revenue (c)
|
5.0
|
|
|
3.8
|
|
|
8.8
|
|
|||
Total organic increase
|
3.3
|
|
|
1.2
|
|
|
4.5
|
|
|||
Impact of FX
|
19.8
|
|
|
1.4
|
|
|
21.2
|
|
|||
Total
|
$
|
23.1
|
|
|
$
|
2.6
|
|
|
$
|
25.7
|
|
(a)
|
The increase in residential cable subscription revenue related to a change in the average number of
RGU
s is attributable to an increase in the average number of broadband internet, video and fixed-line telephony
RGU
s, primarily in Poland.
|
(b)
|
The decrease in residential cable subscription revenue related to a change in
ARPU
is primarily due to our operations in Poland, attributable to the net effect of (i) lower
ARPU
from fixed-line telephony and broadband internet services and (ii) higher
ARPU
from video services.
|
(c)
|
The increase in
B2B
subscription revenue is attributable to an increase in the average number of broadband internet
SOHO
subscribers, primarily in Poland. The increase in
B2B
non-subscription revenue is largely attributable to an increase in interconnect revenue, primarily in Poland.
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
6,398.7
|
|
|
$
|
6,508.8
|
|
|
$
|
(110.1
|
)
|
|
(1.7
|
)
|
|
$
|
151.8
|
|
|
2.3
|
|
Belgium
|
2,865.3
|
|
|
2,691.1
|
|
|
174.2
|
|
|
6.5
|
|
|
36.3
|
|
|
1.3
|
|
||||
Switzerland
|
1,370.1
|
|
|
1,377.4
|
|
|
(7.3
|
)
|
|
(0.5
|
)
|
|
(14.5
|
)
|
|
(1.0
|
)
|
||||
Central and Eastern Europe
|
467.5
|
|
|
441.3
|
|
|
26.2
|
|
|
5.9
|
|
|
6.6
|
|
|
1.5
|
|
||||
The Netherlands
|
—
|
|
|
2,690.8
|
|
|
(2,690.8
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
—
|
|
||||
Central and Corporate (a)
|
189.4
|
|
|
84.1
|
|
|
105.3
|
|
|
125.2
|
|
|
34.3
|
|
|
23.1
|
|
||||
Intersegment eliminations
|
(14.6
|
)
|
|
(62.4
|
)
|
|
47.8
|
|
|
N.M.
|
|
|
(0.4
|
)
|
|
N.M.
|
|
||||
Total
|
$
|
11,276.4
|
|
|
$
|
13,731.1
|
|
|
$
|
(2,454.7
|
)
|
|
(17.9
|
)
|
|
$
|
214.1
|
|
|
1.9
|
|
(a)
|
The amount presented for 2017 primarily includes the revenue earned from services provided to the
VodafoneZiggo JV
. For additional information, see note
7
to our consolidated financial statements. The amount presented for
2016
primarily includes the revenue of
Ziggo Sport
, which was contributed to the
VodafoneZiggo JV
as part of the
VodafoneZiggo JV Transaction
.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase in residential cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
80.0
|
|
|
$
|
—
|
|
|
$
|
80.0
|
|
ARPU (b)
|
18.2
|
|
|
—
|
|
|
18.2
|
|
|||
Increase in residential cable non-subscription revenue (c)
|
—
|
|
|
18.9
|
|
|
18.9
|
|
|||
Total increase in residential cable revenue
|
98.2
|
|
|
18.9
|
|
|
117.1
|
|
|||
Increase (decrease) in residential mobile revenue (d)
|
(52.9
|
)
|
|
38.9
|
|
|
(14.0
|
)
|
|||
Increase in B2B revenue (e)
|
34.6
|
|
|
7.0
|
|
|
41.6
|
|
|||
Increase
in other revenue (f)
|
—
|
|
|
7.1
|
|
|
7.1
|
|
|||
Total organic increase
|
79.9
|
|
|
71.9
|
|
|
151.8
|
|
|||
Impact of acquisitions
|
—
|
|
|
31.4
|
|
|
31.4
|
|
|||
Impact of disposals
|
—
|
|
|
(2.9
|
)
|
|
(2.9
|
)
|
|||
Impact of FX
|
(230.0
|
)
|
|
(60.4
|
)
|
|
(290.4
|
)
|
|||
Total
|
$
|
(150.1
|
)
|
|
$
|
40.0
|
|
|
$
|
(110.1
|
)
|
(a)
|
The
increase in residential cable subscription revenue related to a change in the average number of
RGU
s is primarily attributable to the net effect of (i) increases in the average number of broadband internet, video and fixed-line telephony
RGU
s in the
U.K.
and (ii) a decrease in the average number of video
RGU
s in Ireland.
|
(b)
|
The increase in residential cable subscription revenue related to a change in
ARPU
is attributable to (i) the net effect of (a) higher
ARPU
from broadband internet services and (b) lower
ARPU
from video and fixed-line telephony services and (ii) an improvement in
RGU
mix. In addition,
ARPU
from video, broadband internet and fixed-line telephony services was adversely impacted by an aggregate revenue decrease of $12.4 million associated with an April 2016 change in the regulations
|
(c)
|
The increase in residential cable non-subscription revenue is primarily attributable to the net effect of (i) an increase in installation revenue in the
U.K.
and (ii) a decrease in early termination fees in the
U.K.
|
(d)
|
The decrease in residential mobile subscription revenue is primarily attributable to the net effect of (i) a decrease in the
U.K.
, due primarily to lower
ARPU
, and (ii) an increase in Ireland, mainly due to an increase in the average number of mobile subscribers. The lower
ARPU
in the
U.K.
includes the net effect of (a) a decline of $104.8 million attributable to a lower number of customers under higher-
ARPU
subsidized handset contracts and (b) an
increase of $42.5 million attributable to growth in the number of customers under lower-
ARPU
contracts that provided for two distinct contractual relationships associated with mobile handsets and mobile airtime services. The increase in residential mobile non-subscription revenue is primarily due to (1) an increase in revenue from mobile handset sales in the
U.K.
and (2) a decrease in interconnect revenue, as a decrease in the
U.K.
was only partially offset by a volume-related increase in Ireland. The decrease in interconnect revenue in the
U.K.
is primarily due to (I) a decline in mobile short message service or “
SMS
”
termination volumes and (II) lower mobile termination rates and volumes.
|
(e)
|
The increase in
B2B
subscription revenue is primarily due to an increase in the average number of broadband internet
SOHO
RGU
s in the
U.K.
The increase in
B2B
non-subscription revenue is primarily due to the net effect of (i) an increase in early termination fees in the
U.K.
and (ii) lower revenue from data services in the
U.K.
|
(f)
|
The increase in other revenue is largely due to an increase in broadcasting revenue in Ireland.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase (decrease) in residential cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
(35.7
|
)
|
|
$
|
—
|
|
|
$
|
(35.7
|
)
|
ARPU (b)
|
23.3
|
|
|
—
|
|
|
23.3
|
|
|||
Increase in residential cable non-subscription revenue (c)
|
—
|
|
|
6.7
|
|
|
6.7
|
|
|||
Total
increase (decrease) in residential cable revenue
|
(12.4
|
)
|
|
6.7
|
|
|
(5.7
|
)
|
|||
Decrease in residential mobile revenue (d)
|
(28.4
|
)
|
|
(25.6
|
)
|
|
(54.0
|
)
|
|||
Increase in B2B revenue (e)
|
50.9
|
|
|
45.3
|
|
|
96.2
|
|
|||
Decrease in other revenue
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|||
Total organic increase
|
10.1
|
|
|
26.2
|
|
|
36.3
|
|
|||
Impact of acquisitions
|
74.9
|
|
|
33.7
|
|
|
108.6
|
|
|||
Impact of disposals
|
(21.0
|
)
|
|
(9.0
|
)
|
|
(30.0
|
)
|
|||
Impact of FX
|
44.3
|
|
|
15.0
|
|
|
59.3
|
|
|||
Total
|
$
|
108.3
|
|
|
$
|
65.9
|
|
|
$
|
174.2
|
|
(a)
|
The decrease in residential cable subscription revenue related to a change in the average number of
RGU
s is attributable to decreases in the average number of video, broadband internet and fixed-line telephony
RGU
s.
|
(b)
|
The
increase in residential cable subscription revenue related to a change in
ARPU
is attributable to (i) the net effect of (a) higher
ARPU
from video and broadband internet services and (b) lower
ARPU
from fixed-line telephony services and (ii) an improvement in
RGU
mix.
|
(c)
|
The increase in residential cable non-subscription revenue is attributable to the net effect of (i) an increase of $5.8 million due to adjustments recorded during 2017 to reflect the expected recovery of certain prior-period VAT payments and (ii) a decrease in revenue from services provided over third-party networks.
|
(d)
|
The
decrease in residential mobile subscription revenue is primarily due to the net effect of
(i) a decline in the average number of mobile subscribers, as a decrease in the average number of prepaid mobile subscribers was only partially offset
|
(e)
|
The increase in
B2B
subscription revenue is attributable to increases in the average number of mobile, broadband internet, video and fixed-line telephony
SOHO
subscribers. The increase in
B2B
non-subscription revenue is primarily due to the net effect of (i) lower revenue from mobile services, (ii) higher revenue from wholesale services, (iii) an increase in revenue from hosting and managed security services and (iv) an increase in interconnect revenue driven by higher mobile volumes.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Decrease in residential cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
(9.7
|
)
|
|
$
|
—
|
|
|
$
|
(9.7
|
)
|
ARPU (b)
|
(42.4
|
)
|
|
—
|
|
|
(42.4
|
)
|
|||
Increase in residential cable non-subscription revenue (c)
|
—
|
|
|
20.0
|
|
|
20.0
|
|
|||
Total increase (decrease) in residential cable revenue
|
(52.1
|
)
|
|
20.0
|
|
|
(32.1
|
)
|
|||
Increase (decrease) in residential mobile revenue (d)
|
13.1
|
|
|
(1.6
|
)
|
|
11.5
|
|
|||
Increase in B2B revenue (e)
|
2.4
|
|
|
3.7
|
|
|
6.1
|
|
|||
Total organic increase (decrease)
|
(36.6
|
)
|
|
22.1
|
|
|
(14.5
|
)
|
|||
Impact of acquisitions
|
1.6
|
|
|
4.8
|
|
|
6.4
|
|
|||
Impact of FX
|
0.7
|
|
|
0.1
|
|
|
0.8
|
|
|||
Total
|
$
|
(34.3
|
)
|
|
$
|
27.0
|
|
|
$
|
(7.3
|
)
|
(a)
|
The decrease in residential cable subscription revenue related to a change in the average number of
RGU
s is attributable to the net effect of (i) declines in the average number of video and broadband internet
RGU
s and (ii) an increase in the average number of fixed-line telephony
RGU
s.
|
(b)
|
The decrease in residential cable subscription revenue related to a change in
ARPU
is primarily attributable to lower
ARPU
from fixed-line telephony, broadband internet and video services.
|
(c)
|
The increase in residential cable non-subscription revenue is primarily attributable to the net effect of (i) a $19.3 million increase in distribution revenue associated with the September 2017 launch of our Swiss sport channels, (ii) a decrease in installation revenue and (iii) a decrease in equipment sales. In addition, the increase in residential cable non-subscription revenue includes a $6.5 million favorable impact of the release of unclaimed customer credits during the first half of
2017
.
|
(d)
|
The increase in residential mobile subscription revenue is due to the net effect of (i) an increase in the average number of mobile subscribers and (ii) lower
ARPU
.
|
(e)
|
The increase in
B2B
subscription revenue is primarily attributable to an increase in the average number of broadband internet
SOHO
RGU
s. The increase in
B2B
non-subscription revenue is primarily due to (i) higher revenue from data services, (ii) higher revenue from construction services provided to our partner networks and (iii) an increase in interconnect revenue.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase (decrease) in residential cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
3.0
|
|
|
$
|
—
|
|
|
$
|
3.0
|
|
ARPU (b)
|
(6.3
|
)
|
|
—
|
|
|
(6.3
|
)
|
|||
Increase in residential cable non-subscription revenue (c)
|
—
|
|
|
2.3
|
|
|
2.3
|
|
|||
Total increase (decrease) in residential cable revenue
|
(3.3
|
)
|
|
2.3
|
|
|
(1.0
|
)
|
|||
Decrease in residential mobile revenue
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||
Increase in B2B revenue (d)
|
3.1
|
|
|
4.6
|
|
|
7.7
|
|
|||
Total organic increase (decrease)
|
(0.3
|
)
|
|
6.9
|
|
|
6.6
|
|
|||
Impact of FX
|
18.4
|
|
|
1.2
|
|
|
19.6
|
|
|||
Total
|
$
|
18.1
|
|
|
$
|
8.1
|
|
|
$
|
26.2
|
|
(a)
|
The increase in residential cable subscription revenue related to a change in the average number of
RGU
s is primarily attributable to the net effect of (i) an increase in the average number of broadband internet
RGU
s, primarily due to an increase in Poland, and (ii) a decrease in the average number of video
RGU
s, primarily due to a decrease in Slovakia.
|
(b)
|
The decrease in residential cable subscription revenue related to a change in
ARPU
is primarily attributable to (i) the net effect of (a) higher
ARPU
from video services, primarily due to an increase in Poland, (b) lower
ARPU
from broadband internet services, primarily due to a decrease in Poland, and (c) lower
ARPU
from fixed-line telephony services, primarily due to a decrease in Poland, and (ii) an improvement in
RGU
mix.
|
(c)
|
The increase in residential cable non-subscription revenue is primarily attributable to an increase in Poland.
|
(d)
|
The increase in
B2B
subscription revenue is primarily attributable to an increase in the average number of broadband internet
SOHO
RGU
s, primarily in Poland. The increase in
B2B
non-subscription revenue is primarily due to higher interconnect and data services revenue, primarily in Poland.
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
|
|
pro forma
|
|
|
|
|
|
|
|
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
3,057.2
|
|
|
$
|
2,857.9
|
|
|
$
|
199.3
|
|
|
7.0
|
|
|
$
|
99.0
|
|
|
3.5
|
|
Belgium
|
1,480.0
|
|
|
1,296.6
|
|
|
183.4
|
|
|
14.1
|
|
|
105.8
|
|
|
8.1
|
|
||||
Switzerland
|
748.7
|
|
|
829.7
|
|
|
(81.0
|
)
|
|
(9.8
|
)
|
|
(86.3
|
)
|
|
(10.4
|
)
|
||||
Central and Eastern Europe
|
249.1
|
|
|
234.3
|
|
|
14.8
|
|
|
6.3
|
|
|
4.6
|
|
|
2.0
|
|
||||
Central and Corporate
|
(371.7
|
)
|
|
(415.8
|
)
|
|
44.1
|
|
|
10.6
|
|
|
37.2
|
|
|
8.6
|
|
||||
Intersegment eliminations
|
(11.8
|
)
|
|
(9.5
|
)
|
|
(2.3
|
)
|
|
N.M.
|
|
|
(2.3
|
)
|
|
N.M.
|
|
||||
Total
|
$
|
5,151.5
|
|
|
$
|
4,793.2
|
|
|
$
|
358.3
|
|
|
7.5
|
|
|
$
|
158.0
|
|
|
3.3
|
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
2,884.0
|
|
|
$
|
2,921.7
|
|
|
$
|
(37.7
|
)
|
|
(1.3
|
)
|
|
$
|
90.8
|
|
|
3.1
|
|
Belgium
|
1,300.3
|
|
|
1,173.6
|
|
|
126.7
|
|
|
10.8
|
|
|
71.3
|
|
|
5.9
|
|
||||
Switzerland
|
832.6
|
|
|
862.8
|
|
|
(30.2
|
)
|
|
(3.5
|
)
|
|
(34.4
|
)
|
|
(4.0
|
)
|
||||
Central and Eastern Europe
|
233.5
|
|
|
227.4
|
|
|
6.1
|
|
|
2.7
|
|
|
(3.9
|
)
|
|
(1.7
|
)
|
||||
The Netherlands
|
—
|
|
|
1,472.7
|
|
|
(1,472.7
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
—
|
|
||||
Central and Corporate
|
(415.8
|
)
|
|
(573.6
|
)
|
|
157.8
|
|
|
27.5
|
|
|
47.5
|
|
|
6.9
|
|
||||
Intersegment eliminations
|
(9.5
|
)
|
|
(4.2
|
)
|
|
(5.3
|
)
|
|
N.M.
|
|
|
(5.0
|
)
|
|
N.M.
|
|
||||
Total
|
$
|
4,825.1
|
|
|
$
|
6,080.4
|
|
|
$
|
(1,255.3
|
)
|
|
(20.6
|
)
|
|
$
|
166.3
|
|
|
3.5
|
|
|
Year ended December 31,
|
||||
|
2018
|
|
2017
|
|
2016
|
|
%
|
||||
|
|
|
|
|
|
U.K./Ireland
|
44.5
|
|
45.1
|
|
44.9
|
Belgium
|
49.4
|
|
45.4
|
|
43.6
|
Switzerland
|
56.5
|
|
60.8
|
|
62.6
|
Central and Eastern Europe
|
50.6
|
|
49.9
|
|
51.5
|
The Netherlands
|
—
|
|
—
|
|
54.7
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
|
|
pro forma
|
|
|
|
|
|
|
|
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
Residential revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential cable revenue (a):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subscription revenue (b):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Video
|
$
|
2,863.2
|
|
|
$
|
2,804.9
|
|
|
$
|
58.3
|
|
|
2.1
|
|
|
$
|
(51.2
|
)
|
|
(1.8
|
)
|
Broadband internet
|
3,226.6
|
|
|
2,998.4
|
|
|
228.2
|
|
|
7.6
|
|
|
111.2
|
|
|
3.7
|
|
||||
Fixed-line telephony
|
1,607.8
|
|
|
1,614.7
|
|
|
(6.9
|
)
|
|
(0.4
|
)
|
|
(67.5
|
)
|
|
(4.2
|
)
|
||||
Total subscription revenue
|
7,697.6
|
|
|
7,418.0
|
|
|
279.6
|
|
|
3.8
|
|
|
(7.5
|
)
|
|
(0.1
|
)
|
||||
Non-subscription revenue
|
279.1
|
|
|
277.2
|
|
|
1.9
|
|
|
0.7
|
|
|
(2.8
|
)
|
|
(1.0
|
)
|
||||
Total residential cable revenue
|
7,976.7
|
|
|
7,695.2
|
|
|
281.5
|
|
|
3.7
|
|
|
(10.3
|
)
|
|
(0.1
|
)
|
||||
Residential mobile revenue (c):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subscription revenue (b)
|
983.5
|
|
|
978.7
|
|
|
4.8
|
|
|
0.5
|
|
|
(15.8
|
)
|
|
(1.6
|
)
|
||||
Non-subscription revenue
|
694.8
|
|
|
621.8
|
|
|
73.0
|
|
|
11.7
|
|
|
60.8
|
|
|
10.0
|
|
||||
Total residential mobile revenue
|
1,678.3
|
|
|
1,600.5
|
|
|
77.8
|
|
|
4.9
|
|
|
45.0
|
|
|
2.9
|
|
||||
Total residential revenue
|
9,655.0
|
|
|
9,295.7
|
|
|
359.3
|
|
|
3.9
|
|
|
34.7
|
|
|
0.4
|
|
||||
B2B revenue (d):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subscription revenue
|
446.4
|
|
|
368.6
|
|
|
77.8
|
|
|
21.1
|
|
|
61.2
|
|
|
16.6
|
|
||||
Non-subscription revenue
|
1,537.1
|
|
|
1,370.7
|
|
|
166.4
|
|
|
12.1
|
|
|
73.8
|
|
|
5.2
|
|
||||
Total B2B revenue
|
1,983.5
|
|
|
1,739.3
|
|
|
244.2
|
|
|
14.0
|
|
|
135.0
|
|
|
7.6
|
|
||||
Other revenue (e)
|
319.4
|
|
|
219.9
|
|
|
99.5
|
|
|
45.2
|
|
|
69.3
|
|
|
29.1
|
|
||||
Total
|
$
|
11,957.9
|
|
|
$
|
11,254.9
|
|
|
$
|
703.0
|
|
|
6.2
|
|
|
$
|
239.0
|
|
|
2.1
|
|
(a)
|
Residential cable subscription revenue includes amounts received from subscribers for ongoing services and the recognition of deferred installation revenue over the associated contract period. Residential cable non-subscription revenue includes, among other items, channel carriage fees, late fees and revenue from the sale of equipment.
|
(b)
|
Residential subscription revenue from subscribers who purchase bundled services at a discounted rate is generally allocated proportionally to each service based on the standalone price for each individual service. As a result, changes in the standalone pricing of our cable and mobile products or the composition of bundles can contribute to changes in our product revenue categories from period to period.
|
(c)
|
Residential mobile subscription revenue includes amounts received from subscribers for ongoing services. Residential mobile non-subscription revenue includes, among other items, interconnect revenue and revenue from sales of mobile handsets and other devices. Residential mobile interconnect revenue was
$253.6 million
and
$253.0 million
during
2018
and
2017
, respectively.
|
(d)
|
B2B
subscription revenue represents revenue from
SOHO
subscribers.
SOHO
subscribers pay a premium price to receive expanded service levels along with video, broadband internet, fixed-line telephony or mobile services that are the same or similar to the mass marketed products offered to our residential subscribers. A portion of the increases in our
B2B
subscription revenue is attributable to the conversion of certain residential subscribers to
SOHO
subscribers.
B2B
non-subscription revenue includes revenue from business broadband internet, video, fixed-line telephony, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other operators.
|
(e)
|
Other revenue includes, among other items, revenue earned from the JV Services, broadcasting revenue in Ireland and revenue from Central and Corporate’s wholesale handset program. In addition, the amount for 2018 includes revenue earned from (i) sales of customer premises equipment to the VodafoneZiggo JV and (ii) transitional and other services provided to Deutsche Telekom and Liberty Latin America.
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
|
|
pro forma
|
|
|
|
|
|
|
|
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
2,101.3
|
|
|
$
|
1,869.8
|
|
|
$
|
231.5
|
|
|
12.4
|
|
|
$
|
157.7
|
|
|
8.4
|
|
Belgium
|
680.5
|
|
|
743.6
|
|
|
(63.1
|
)
|
|
(8.5
|
)
|
|
(90.5
|
)
|
|
(12.2
|
)
|
||||
Switzerland
|
253.0
|
|
|
211.3
|
|
|
41.7
|
|
|
19.7
|
|
|
40.4
|
|
|
19.1
|
|
||||
Central and Eastern Europe
|
111.2
|
|
|
105.4
|
|
|
5.8
|
|
|
5.5
|
|
|
1.0
|
|
|
0.9
|
|
||||
Central and Corporate
|
100.0
|
|
|
45.8
|
|
|
54.2
|
|
|
118.3
|
|
|
54.5
|
|
|
119.0
|
|
||||
Intersegment eliminations
|
0.1
|
|
|
(1.3
|
)
|
|
1.4
|
|
|
N.M.
|
|
|
1.4
|
|
|
N.M.
|
|
||||
Total
|
$
|
3,246.1
|
|
|
$
|
2,974.6
|
|
|
$
|
271.5
|
|
|
9.1
|
|
|
$
|
164.5
|
|
|
5.5
|
|
•
|
An increase in programming and copyright costs of $70.1 million or 4.6%, primarily due to increases in
U.K./Ireland
and
Switzerland
. This increase is primarily due to higher costs for certain premium and/or basic content, including (i) a $27.8 million increase in costs associated with sports rights in
Switzerland
and (ii) a $10.3 million increase in costs associated with broadcasting rights in Ireland. The increase in the costs for sports rights in
Switzerland
is due to the acquisition of the rights to carry live sporting events in connection with the September 2017 launch of our Swiss sports channels. Approximately half of the annual programming costs and the operating and capital costs associated with the production of the related Swiss sports channels are recovered from the revenue earned from the distribution of these sports channels to other cable operators;
|
•
|
Higher cost of sales of $51.2 million in
Central and Corporate
related to customer premises equipment sold to the
VodafoneZiggo JV
;
|
•
|
An increase in mobile handset and other device costs of $35.9 million or 11.0%, primarily due to the net effect of (i) a higher average cost per handset sold in
U.K./Ireland
and (ii) lower mobile handset and other device sales volumes, primarily due to decreases in
U.K./Ireland
and Belgium;
|
•
|
An increase in interconnect and access costs of $16.5 million or 1.9%, primarily due to the net effect of (i) lower
MVNO
costs, as a decrease in Belgium of $46.5 million was only partially offset by an increase in
Switzerland
of $9.0 million, (ii) a $34.3 million increase in
U.K./Ireland
resulting from the net impact of credits recorded during the second quarter of 2017 ($28.8 million), the fourth quarter of 2017 ($10.5 million) and the second quarter of 2018 ($5.0 million), primarily
|
•
|
A decrease of $7.3 million in the
U.K.
associated with the fourth quarter 2017 modification of a software agreement that resulted in the acquisition of a perpetual license and related conversion of the operating costs to capitalized costs.
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
|
|
pro forma
|
|
|
|
|
|
|
|
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
877.9
|
|
|
$
|
828.5
|
|
|
$
|
49.4
|
|
|
6.0
|
|
|
$
|
17.5
|
|
|
2.1
|
|
Belgium
|
408.5
|
|
|
395.5
|
|
|
13.0
|
|
|
3.3
|
|
|
(19.1
|
)
|
|
(4.7
|
)
|
||||
Switzerland
|
158.9
|
|
|
162.8
|
|
|
(3.9
|
)
|
|
(2.4
|
)
|
|
(5.7
|
)
|
|
(3.5
|
)
|
||||
Central and Eastern Europe
|
64.0
|
|
|
60.8
|
|
|
3.2
|
|
|
5.3
|
|
|
—
|
|
|
—
|
|
||||
Central and Corporate
|
197.0
|
|
|
202.6
|
|
|
(5.6
|
)
|
|
(2.8
|
)
|
|
(12.5
|
)
|
|
(6.2
|
)
|
||||
Intersegment eliminations
|
6.5
|
|
|
8.9
|
|
|
(2.4
|
)
|
|
N.M.
|
|
|
(2.4
|
)
|
|
N.M.
|
|
||||
Total other operating expenses excluding share-based compensation expense
|
1,712.8
|
|
|
1,659.1
|
|
|
53.7
|
|
|
3.2
|
|
|
$
|
(22.2
|
)
|
|
(1.3
|
)
|
|||
Share-based compensation expense
|
4.4
|
|
|
4.7
|
|
|
(0.3
|
)
|
|
(6.4
|
)
|
|
|
|
|
||||||
Total
|
$
|
1,717.2
|
|
|
$
|
1,663.8
|
|
|
$
|
53.4
|
|
|
3.2
|
|
|
|
|
|
•
|
An increase in network infrastructure charges in
U.K./Ireland
of $22.5 million following an increase in the rateable value of existing assets. For additional information, see “
Other Regulatory Issues”
in note
18
to our consolidated financial statements;
|
•
|
A decrease in core network and information technology-related costs of $17.3 million or 5.2%, primarily due to the net effect of (i) a decrease in network maintenance and energy costs, primarily in
Central and Corporate
,
U.K./Ireland
and Belgium, (ii) an increase in outsourced data center costs, primarily in
Central and Corporate
, and (iii) a decrease in information technology-related expenses, primarily in Belgium;
|
•
|
A decrease in business service costs of $12.7 million or 6.2%, primarily due to (i) decreased vehicle expenses due to the impact of the conversion of certain operating leases on company vehicles to capital leases, primarily in Belgium, (ii) lower energy costs, primarily in Belgium, and (iii) lower consulting costs, primarily in
U.K./Ireland
;
|
•
|
An increase in personnel costs of $9.3 million or 2.0%, primarily due to the net effect of (i) a higher average cost per employee, primarily due to an increase in
U.K./Ireland
, (ii) lower staffing levels, as decreases in
U.K./Ireland
and Belgium were only partially offset by an increase in
Central and Corporate
, and (iii) higher incentive compensation costs, primarily in
U.K./Ireland
. A portion of the lower staffing levels in Belgium is attributable to the transfer of certain employees to a newly-formed joint venture that provides network maintenance and customer-facing services to Telenet. Effective with the July 1, 2018 formation of this non-consolidated joint venture, the costs associated with these services are included within our core network and outsourced labor operating expense categories;
|
•
|
A decrease in customer service costs of $5.3 million or 2.0%, primarily due to the net effect of (i) lower call center costs, primarily in Belgium,
U.K./Ireland
and
Switzerland
, and (ii) an increase in customer premises equipment refurbishment, inventory management and other supply chain costs, as increases in
Central and Corporate
and Belgium were only partially offset by a decrease in
U.K./Ireland
;
|
•
|
A decrease in encryption costs of $4.6 million in the
U.K.
associated with the 2018 modification of a service agreement that resulted in the acquisition of a time-based license and related conversion of the operating costs to capitalized costs; and
|
•
|
An increase in outsourced labor costs of $4.4 million or 3.7%, primarily associated with customer-facing activities. This increase is largely attributable to the aforementioned July 1, 2018 formation of a non-consolidated joint venture in Belgium.
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
|
|
pro forma
|
|
|
|
|
|
|
|
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
838.7
|
|
|
$
|
829.6
|
|
|
$
|
9.1
|
|
|
1.1
|
|
|
$
|
(24.7
|
)
|
|
(3.0
|
)
|
Belgium
|
424.6
|
|
|
425.9
|
|
|
(1.3
|
)
|
|
(0.3
|
)
|
|
(31.9
|
)
|
|
(7.3
|
)
|
||||
Switzerland
|
165.4
|
|
|
162.4
|
|
|
3.0
|
|
|
1.8
|
|
|
1.0
|
|
|
0.6
|
|
||||
Central and Eastern Europe
|
67.9
|
|
|
66.0
|
|
|
1.9
|
|
|
2.9
|
|
|
(1.1
|
)
|
|
(1.7
|
)
|
||||
Central and Corporate
|
348.9
|
|
|
356.8
|
|
|
(7.9
|
)
|
|
(2.2
|
)
|
|
(19.3
|
)
|
|
(5.4
|
)
|
||||
Intersegment eliminations
|
2.0
|
|
|
(12.7
|
)
|
|
14.7
|
|
|
N.M.
|
|
|
14.7
|
|
|
N.M.
|
|
||||
Total SG&A expenses excluding share-based compensation expense
|
1,847.5
|
|
|
1,828.0
|
|
|
19.5
|
|
|
1.1
|
|
|
$
|
(61.3
|
)
|
|
(3.3
|
)
|
|||
Share-based compensation expense
|
201.6
|
|
|
157.5
|
|
|
44.1
|
|
|
28.0
|
|
|
|
|
|
||||||
Total
|
$
|
2,049.1
|
|
|
$
|
1,985.5
|
|
|
$
|
63.6
|
|
|
3.2
|
|
|
|
|
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic decrease
|
||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
|
|
pro forma
|
|
|
|
|
|
|
|
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
General and administrative (a)
|
$
|
1,495.7
|
|
|
$
|
1,436.7
|
|
|
$
|
59.0
|
|
|
4.1
|
|
|
$
|
(2.8
|
)
|
|
(0.2
|
)
|
External sales and marketing
|
351.8
|
|
|
391.3
|
|
|
(39.5
|
)
|
|
(10.1
|
)
|
|
(58.5
|
)
|
|
(14.7
|
)
|
||||
Total
|
$
|
1,847.5
|
|
|
$
|
1,828.0
|
|
|
$
|
19.5
|
|
|
1.1
|
|
|
$
|
(61.3
|
)
|
|
(3.3
|
)
|
(a)
|
General and administrative expenses include all personnel-related costs within our SG&A expenses, including personnel-related costs associated with our sales and marketing function.
|
•
|
A decrease in external sales and marketing costs of
$58.5 million
or
14.7%
, primarily due to lower costs associated with advertising campaigns in
U.K./Ireland
and Belgium;
|
•
|
A decrease in personnel costs of $22.4 million or 2.8%, primarily due to the net effect of (i) a lower average cost per employee, primarily due to decreases in Switzerland,
Central and Corporate
and Poland that were only partially offset by an increase in
U.K./Ireland
, (ii) lower incentive compensation costs of $9.6 million, primarily in
Central and Corporate
and
U.K./Ireland
, (iii) a decrease in temporary personnel costs, primarily in
Central and Corporate
and Belgium, and (iv) higher staffing levels, as increases in Switzerland and Poland were only partially offset by a decrease in
U.K./Ireland
. The lower incentive compensation costs are attributable to the expected settlement of a portion of our annual incentive compensation with
Liberty Global
ordinary shares through a shareholding incentive program that was implemented in the fourth quarter of 2017. This shareholding incentive program resulted in lower incentive compensation expense of $29.1 million during 2018 as compared to 2017, primarily in
Central and Corporate
. For additional information, see note
14
to our consolidated financial statements;
|
•
|
An increase in core network and information technology-related costs of $20.3 million or 11.8%, primarily due to higher information technology-related expenses in
Central and Corporate
and
U.K./Ireland
; and
|
•
|
A decrease in business service and certain other costs of $14.3 million or 6.8%, primarily due to the net effect of (i) lower consulting costs, primarily due to decreases in Belgium,
Central and Corporate
and
U.K./Ireland
, and (ii) a $9.1 million increase related to the settlement of an operational contingency in
U.K./Ireland
during 2018.
|
|
Year ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
Liberty Global:
|
|
|
|
||||
Performance-based incentive awards (a)
|
$
|
50.8
|
|
|
$
|
23.9
|
|
Non-performance based share-based incentive awards
|
90.1
|
|
|
93.8
|
|
||
Other (b)
|
43.4
|
|
|
13.7
|
|
||
Total Liberty Global
|
184.3
|
|
|
131.4
|
|
||
Telenet share-based incentive awards (c)
|
19.6
|
|
|
20.7
|
|
||
Other
|
2.1
|
|
|
10.1
|
|
||
Total
|
$
|
206.0
|
|
|
$
|
162.2
|
|
Included in:
|
|
|
|
||||
Other operating expenses
|
$
|
4.4
|
|
|
$
|
4.7
|
|
Total SG&A expenses
|
201.6
|
|
|
157.5
|
|
||
Total
|
$
|
206.0
|
|
|
$
|
162.2
|
|
(a)
|
Includes share-based compensation expense related to
PSU
s, and, through March 2017, the
PGUs
held by our Chief Executive Officer.
|
(b)
|
Represents annual incentive compensation and defined contribution plan liabilities that have been or are expected to be settled with
Liberty Global
ordinary shares. In the case of the annual incentive compensation, shares will be issued to senior management and key employees pursuant to a shareholding incentive program that was implemented in the fourth quarter of 2017. The shareholding incentive program allows these employees to elect to receive up to 100% of their annual incentive compensation in ordinary shares of
Liberty Global
in lieu of cash.
|
(c)
|
Represents the share-based compensation expense associated with Telenet’s share-based incentive awards, which, at
December 31, 2018
, included performance- and non-performance-based stock option awards with respect to
4,494,002
Telenet shares. These stock option awards had a weighted average exercise price of
€42.50
(
$48.67
).
|
|
Year ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Cross-currency and interest rate derivative contracts (a)
|
$
|
905.8
|
|
|
$
|
(1,145.6
|
)
|
Equity-related derivative instruments:
|
|
|
|
||||
ITV Collar
|
176.7
|
|
|
215.0
|
|
||
Lionsgate Forward
|
30.1
|
|
|
(11.4
|
)
|
||
Sumitomo Collar
|
(11.8
|
)
|
|
(77.4
|
)
|
||
Other
|
2.5
|
|
|
(3.9
|
)
|
||
Total equity-related derivative instruments (b)
|
197.5
|
|
|
122.3
|
|
||
Foreign currency forward and option contracts
|
22.7
|
|
|
(30.2
|
)
|
||
Other
|
(0.2
|
)
|
|
0.7
|
|
||
Total
|
$
|
1,125.8
|
|
|
$
|
(1,052.8
|
)
|
(a)
|
The gain during
2018
is primarily attributable to the net effect of (i) a net gain associated with changes in the relative value of certain currencies and (ii) a net loss associated with changes in certain market interest rates. In addition, the gain during
2018
includes a net loss of
$71.1 million
resulting from changes in our credit risk valuation adjustments. The loss during
2017
is primarily attributable to the net effect of (a) a net loss associated with changes in the relative value of certain currencies and (b) a net gain associated with changes in certain market interest rates. In addition, the loss during
2017
includes a net gain of
$168.4 million
resulting from changes in our credit risk valuation adjustments.
|
(b)
|
For information concerning the factors that impact the valuations of our equity-related derivative instruments, see note
9
to our consolidated financial statements.
|
|
Year ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Intercompany payables and receivables denominated in a currency other than the entity’s functional currency (a)
|
$
|
494.3
|
|
|
$
|
(874.3
|
)
|
U.S. dollar denominated debt issued by British pound sterling functional currency entities
|
(258.0
|
)
|
|
351.9
|
|
||
U.S. dollar denominated debt issued by euro functional currency entities
|
(222.1
|
)
|
|
551.2
|
|
||
British pound sterling denominated debt issued by a U.S. dollar functional currency entity
|
83.3
|
|
|
(125.5
|
)
|
||
Cash and restricted cash denominated in a currency other than the entity’s functional currency
|
(5.5
|
)
|
|
(105.9
|
)
|
||
Euro denominated debt issued by British pound sterling functional currency entities
|
5.3
|
|
|
20.2
|
|
||
Yen denominated debt issued by a U.S. dollar functional currency entity
|
(5.1
|
)
|
|
(20.9
|
)
|
||
Other
|
(1.8
|
)
|
|
21.8
|
|
||
Total
|
$
|
90.4
|
|
|
$
|
(181.5
|
)
|
(a)
|
Amounts primarily relate to (i) loans between certain of our non-operating and operating subsidiaries in Europe, which generally are denominated in the currency of the applicable operating subsidiary and (ii) loans between certain of our non-operating subsidiaries in the U.S. and Europe.
|
(a)
|
Amount in
2017
includes gains of $12.7 million related to investments that were sold during the year.
|
|
Year ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
|
|
|
|
||||
VodafoneZiggo JV (a)
|
$
|
11.4
|
|
|
$
|
(70.1
|
)
|
Other
|
(20.1
|
)
|
|
(25.1
|
)
|
||
Total
|
$
|
(8.7
|
)
|
|
$
|
(95.2
|
)
|
(a)
|
Amounts include the net effect of
(i) interest income of
$59.6 million
and $
64.3 million
, respectively, representing
100%
of the interest income earned on the
VodafoneZiggo JV Receivable
, (ii)
100%
of the share-based compensation expense
|
|
Year ended December 31,
|
||||||
|
2018
|
|
2017 (1)
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Revenue
|
$
|
4,602.2
|
|
|
$
|
4,488.9
|
|
Adjusted OIBDA
|
$
|
2,009.7
|
|
|
$
|
1,912.6
|
|
Operating income (2)
|
$
|
130.6
|
|
|
$
|
219.4
|
|
Non-operating expense (3)
|
$
|
(598.4
|
)
|
|
$
|
(580.3
|
)
|
Net loss
|
$
|
(91.6
|
)
|
|
$
|
(257.3
|
)
|
(1)
|
Amounts have been presented on a pro forma basis that gives effect to the adoption of
ASU 2014-09
as if such adoption had occurred on January 1, 2017.
|
(2)
|
Includes depreciation and amortization of
$1,833.6 million
and
$1,678.5 million
, respectively.
|
(3)
|
Includes interest expense of
$678.3 million
and
$650.1 million
, respectively.
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
Residential revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential cable revenue (a):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subscription revenue (b):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Video
|
$
|
2,786.5
|
|
|
$
|
4,060.0
|
|
|
$
|
(1,273.5
|
)
|
|
(31.4
|
)
|
|
$
|
(88.0
|
)
|
|
(3.0
|
)
|
Broadband internet
|
2,979.7
|
|
|
3,579.0
|
|
|
(599.3
|
)
|
|
(16.7
|
)
|
|
168.5
|
|
|
5.9
|
|
||||
Fixed-line telephony
|
1,599.8
|
|
|
2,149.5
|
|
|
(549.7
|
)
|
|
(25.6
|
)
|
|
(50.1
|
)
|
|
(2.9
|
)
|
||||
Total subscription revenue
|
7,366.0
|
|
|
9,788.5
|
|
|
(2,422.5
|
)
|
|
(24.7
|
)
|
|
30.4
|
|
|
0.4
|
|
||||
Non-subscription revenue
|
343.6
|
|
|
311.9
|
|
|
31.7
|
|
|
10.2
|
|
|
76.8
|
|
|
29.0
|
|
||||
Total residential cable revenue
|
7,709.6
|
|
|
10,100.4
|
|
|
(2,390.8
|
)
|
|
(23.7
|
)
|
|
107.2
|
|
|
1.4
|
|
||||
Residential mobile revenue (c):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subscription revenue (b)
|
999.7
|
|
|
1,103.9
|
|
|
(104.2
|
)
|
|
(9.4
|
)
|
|
(68.3
|
)
|
|
(6.3
|
)
|
||||
Non-subscription revenue
|
607.1
|
|
|
590.8
|
|
|
16.3
|
|
|
2.8
|
|
|
11.7
|
|
|
1.9
|
|
||||
Total residential mobile revenue
|
1,606.8
|
|
|
1,694.7
|
|
|
(87.9
|
)
|
|
(5.2
|
)
|
|
(56.6
|
)
|
|
(3.4
|
)
|
||||
Total residential revenue
|
9,316.4
|
|
|
11,795.1
|
|
|
(2,478.7
|
)
|
|
(21.0
|
)
|
|
50.6
|
|
|
0.5
|
|
||||
B2B revenue (d):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Subscription revenue
|
367.6
|
|
|
366.3
|
|
|
1.3
|
|
|
0.4
|
|
|
91.0
|
|
|
33.5
|
|
||||
Non-subscription revenue
|
1,372.5
|
|
|
1,487.9
|
|
|
(115.4
|
)
|
|
(7.8
|
)
|
|
62.4
|
|
|
4.6
|
|
||||
Total B2B revenue
|
1,740.1
|
|
|
1,854.2
|
|
|
(114.1
|
)
|
|
(6.2
|
)
|
|
153.4
|
|
|
9.5
|
|
||||
Other revenue (e)
|
219.9
|
|
|
81.8
|
|
|
138.1
|
|
|
168.8
|
|
|
10.1
|
|
|
4.9
|
|
||||
Total
|
$
|
11,276.4
|
|
|
$
|
13,731.1
|
|
|
$
|
(2,454.7
|
)
|
|
(17.9
|
)
|
|
$
|
214.1
|
|
|
1.9
|
|
(a)
|
Residential cable subscription revenue includes amounts received from subscribers for ongoing services. Residential cable non-subscription revenue includes, among other items, channel carriage fees, installation revenue, late fees and revenue from the sale of equipment.
|
(b)
|
Residential subscription revenue from subscribers who purchase bundled services at a discounted rate is generally allocated proportionally to each service based on the standalone price for each individual service. As a result, changes in the standalone pricing of our cable and mobile products or the composition of bundles can contribute to changes in our product revenue categories from period to period.
|
(c)
|
Residential mobile subscription revenue includes amounts received from subscribers for ongoing services. Residential mobile non-subscription revenue includes, among other items, interconnect revenue and revenue from sales of mobile handsets and other devices. Residential mobile interconnect revenue was
$253.0 million
and
$262.2 million
during
2017
and
2016
, respectively.
|
(d)
|
B2B
subscription revenue represents revenue from
SOHO
subscribers.
SOHO
subscribers pay a premium price to receive expanded service levels along with video, broadband internet, fixed-line telephony or mobile services that are the same or similar to the mass marketed products offered to our residential subscribers. A portion of the increases in our
B2B
subscription revenue is attributable to the conversion of certain residential subscribers to
SOHO
subscribers.
B2B
non-subscription revenue includes revenue from business broadband internet, video, fixed-line telephony, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other operators.
|
(e)
|
Other revenue includes, among other items, revenue earned from services provided to the
VodafoneZiggo JV
.
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
1,868.8
|
|
|
$
|
1,946.4
|
|
|
$
|
(77.6
|
)
|
|
(4.0
|
)
|
|
$
|
(8.4
|
)
|
|
(0.4
|
)
|
Belgium
|
743.6
|
|
|
734.9
|
|
|
8.7
|
|
|
1.2
|
|
|
(20.7
|
)
|
|
(2.8
|
)
|
||||
Switzerland
|
211.3
|
|
|
185.6
|
|
|
25.7
|
|
|
13.8
|
|
|
24.9
|
|
|
13.4
|
|
||||
Central and Eastern Europe
|
105.4
|
|
|
96.4
|
|
|
9.0
|
|
|
9.3
|
|
|
4.6
|
|
|
4.8
|
|
||||
The Netherlands
|
—
|
|
|
509.1
|
|
|
(509.1
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
—
|
|
||||
Central and Corporate
|
45.8
|
|
|
79.8
|
|
|
(34.0
|
)
|
|
(42.6
|
)
|
|
24.2
|
|
|
130.1
|
|
||||
Intersegment eliminations
|
(1.3
|
)
|
|
(52.8
|
)
|
|
51.5
|
|
|
N.M.
|
|
|
3.3
|
|
|
N.M.
|
|
||||
Total
|
$
|
2,973.6
|
|
|
$
|
3,499.4
|
|
|
$
|
(525.8
|
)
|
|
(15.0
|
)
|
|
$
|
27.9
|
|
|
0.9
|
|
•
|
An increase in programming and copyright costs of $65.8 million or 4.4%, primarily due to increases in
U.K./Ireland
and Switzerland. This increase is primarily due to (i) higher costs for certain premium and/or basic content, including higher costs for sports rights, primarily in
U.K./Ireland
and Switzerland, and (ii) growth in the number of enhanced video subscribers, primarily due to increases in
U.K./Ireland
and Poland that were only partially offset by a decrease in Belgium. The cost for sports rights increased by $28.9 million in Switzerland due to the acquisition of the rights to carry live sporting events in connection with the September 2017 launch of our Swiss sports channels;
|
•
|
A decrease in interconnect and access costs of $65.3 million or 7.2%, primarily due to the net effect of (i) a $42.1 million decrease (including $32.3 million and $9.8 million recorded in the second and fourth quarters of 2017, respectively) in
U.K./Ireland
, in connection with a telecommunications operator’s agreement to compensate communications providers, including
Virgin Media
, for certain contractual breaches related to network charges, (ii) lower MVNO costs, as decreases in Belgium and
U.K./Ireland
were only partially offset by an increase in Switzerland, (iii) lower fixed-line telephony call volumes due to declines in
U.K./Ireland
and Switzerland and (iv) an increase of $6.8 million due to the release of an accrual during the second quarter of 2016 related to the settlement of an operational contingency in Belgium; and
|
•
|
An increase in mobile handset and other device costs of $30.5 million or 9.3%, primarily due to the net effect of (i) a higher average cost per handset sold in
U.K./Ireland
and (ii) lower mobile handset and other device sales volumes, primarily due to decreases in Belgium and
U.K./Ireland
that were only partially offset by an increase in
Central and Corporate
.
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
824.2
|
|
|
$
|
814.8
|
|
|
$
|
9.4
|
|
|
1.2
|
|
|
$
|
43.6
|
|
|
5.3
|
|
Belgium
|
395.5
|
|
|
361.9
|
|
|
33.6
|
|
|
9.3
|
|
|
10.8
|
|
|
2.9
|
|
||||
Switzerland
|
162.8
|
|
|
164.3
|
|
|
(1.5
|
)
|
|
(0.9
|
)
|
|
(3.2
|
)
|
|
(1.9
|
)
|
||||
Central and Eastern Europe
|
60.8
|
|
|
57.9
|
|
|
2.9
|
|
|
5.0
|
|
|
0.5
|
|
|
0.9
|
|
||||
The Netherlands
|
—
|
|
|
346.9
|
|
|
(346.9
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
—
|
|
||||
Central and Corporate
|
202.6
|
|
|
164.7
|
|
|
37.9
|
|
|
23.0
|
|
|
14.6
|
|
|
8.0
|
|
||||
Intersegment eliminations
|
8.9
|
|
|
10.9
|
|
|
(2.0
|
)
|
|
N.M.
|
|
|
(2.3
|
)
|
|
N.M.
|
|
||||
Total other operating expenses excluding share-based compensation expense
|
1,654.8
|
|
|
1,921.4
|
|
|
(266.6
|
)
|
|
(13.9
|
)
|
|
$
|
64.0
|
|
|
4.0
|
|
|||
Share-based compensation expense
|
4.7
|
|
|
3.4
|
|
|
1.3
|
|
|
38.2
|
|
|
|
|
|
||||||
Total
|
$
|
1,659.5
|
|
|
$
|
1,924.8
|
|
|
$
|
(265.3
|
)
|
|
(13.8
|
)
|
|
|
|
|
•
|
An increase in network infrastructure charges in
U.K./Ireland
of $34.0 million following an increase in the rateable value of existing assets. For additional information, see “
Other Regulatory Issues
” in note
18
to our consolidated financial statements;
|
•
|
A decrease in personnel costs of $16.3 million or 3.1%, due primarily to the net effect of (i) lower staffing levels, as decreases in
Central and Corporate
and
U.K./Ireland
were only partially offset by an increase in Belgium, (ii) decreased costs in
U.K./Ireland
and Belgium resulting from higher capitalized labor costs, (iii) annual wage increases, (iv) lower incentive compensation costs, primarily in
U.K./Ireland
, and (v) higher costs related to certain employee benefits in Belgium and
Central and Corporate
. The higher capitalized labor costs in
U.K./Ireland
are associated with (a) the
Network Extensions
and (b) increased installations of new customer premises equipment. The higher capitalized labor costs in Belgium are primarily associated with a project to upgrade Telenet’s mobile network;
|
•
|
An increase in outsourced labor costs of $14.6 million or 11.4% primarily associated with customer-facing activities in
U.K./Ireland
;
|
•
|
A decrease in vehicle expenses of $7.8 million or 43.2%, a portion of which is due to the impact of the conversion of certain operating leases on company vehicles to capital leases, primarily in
U.K./Ireland
; and
|
•
|
An increase in core network and information technology-related expenses of $7.4 million or 1.6%, primarily due to the net effect of (i) an increase in network maintenance and energy costs, primarily due to increases in
Central and Corporate
and Switzerland that were only partially offset by a decrease in
U.K./Ireland
, (ii) a $5.9 million increase in
U.K./Ireland
associated with the impact of the settlement of an operational contingency during the first quarter of 2016 and (iii) a decrease in information technology-related expenses, primarily due to a decrease in
U.K./Ireland
that was only partially offset by an increase in
Central and Corporate
.
|
|
Year ended December 31,
|
|
Increase (decrease)
|
|
Organic
increase (decrease)
|
||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.K./Ireland
|
$
|
821.7
|
|
|
$
|
825.9
|
|
|
$
|
(4.2
|
)
|
|
(0.5
|
)
|
|
$
|
25.8
|
|
|
(3.1
|
)
|
Belgium
|
425.9
|
|
|
420.7
|
|
|
5.2
|
|
|
1.2
|
|
|
(25.1
|
)
|
|
(5.7
|
)
|
||||
Switzerland
|
163.4
|
|
|
164.7
|
|
|
(1.3
|
)
|
|
(0.8
|
)
|
|
(1.8
|
)
|
|
(1.1
|
)
|
||||
Central and Eastern Europe
|
67.8
|
|
|
59.6
|
|
|
8.2
|
|
|
13.8
|
|
|
5.4
|
|
|
9.1
|
|
||||
The Netherlands
|
—
|
|
|
362.1
|
|
|
(362.1
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
—
|
|
||||
Central and Corporate
|
356.8
|
|
|
413.2
|
|
|
(56.4
|
)
|
|
(13.6
|
)
|
|
(52.0
|
)
|
|
(12.8
|
)
|
||||
Intersegment eliminations
|
(12.7
|
)
|
|
(16.3
|
)
|
|
3.6
|
|
|
N.M.
|
|
|
3.6
|
|
|
N.M.
|
|
||||
Total SG&A expenses excluding share-based compensation expense
|
1,822.9
|
|
|
2,229.9
|
|
|
(407.0
|
)
|
|
(18.3
|
)
|
|
$
|
(44.1
|
)
|
|
(2.3
|
)
|
|||
Share-based compensation expense
|
157.5
|
|
|
264.7
|
|
|
(107.2
|
)
|
|
(40.5
|
)
|
|
|
|
|
||||||
Total
|
$
|
1,980.4
|
|
|
$
|
2,494.6
|
|
|
$
|
(514.2
|
)
|
|
(20.6
|
)
|
|
|
|
|
|
Year ended December 31,
|
|
Decrease
|
|
Organic
decrease
|
||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||
|
in millions, except percentages
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
General and administrative (a)
|
$
|
1,431.5
|
|
|
$
|
1,732.2
|
|
|
$
|
(300.7
|
)
|
|
(17.4
|
)
|
|
$
|
(42.0
|
)
|
|
(2.8
|
)
|
External sales and marketing
|
391.4
|
|
|
497.7
|
|
|
(106.3
|
)
|
|
(21.4
|
)
|
|
(2.1
|
)
|
|
(0.5
|
)
|
||||
Total
|
$
|
1,822.9
|
|
|
$
|
2,229.9
|
|
|
$
|
(407.0
|
)
|
|
(18.3
|
)
|
|
$
|
(44.1
|
)
|
|
(2.3
|
)
|
(a)
|
General and administrative expenses include all personnel-related costs within our SG&A expenses, including personnel-related costs associated with our sales and marketing function.
|
•
|
A decrease in personnel costs of $45.8 million or 5.5% due primarily to the net effect of (i) decreased staffing levels, primarily due to decreases in
Central and Corporate
and Belgium, (ii) lower incentive compensation costs, primarily due to decreases in
Central and Corporate
and
U.K./Ireland
that were only partially offset by increases in Belgium and Switzerland, and (iii) annual wage increases.
The lower incentive compensation costs include a decrease of $12.5 million, primarily in
Central and Corporate
, attributable to the then expected settlement of a portion of our annual incentive compensation with Liberty Global ordinary shares through a shareholding incentive program that was implemented in the fourth quarter of 2017;
|
•
|
A decrease in business service costs of $42.2 million or 25.6%, primarily due to the net effect of (i) a decrease in consulting costs, primarily
Central and Corporate
and Belgium, and (ii) lower audit and legal fees.
The decrease in consulting costs
|
•
|
An increase in core network and information technology-related expenses of $17.1 million or 16.8%, primarily due to an increase in information technology-related expenses in
U.K./Ireland
;
|
•
|
An increase in external sales and marketing costs of $9.0 million or 1.9%, primarily due to (i) higher third-party sales commissions, primarily due to an increase in
U.K./Ireland
and (ii) higher costs associated with advertising campaigns, primarily due to an increase in Switzerland; and
|
•
|
An increase in customer service costs of $7.8 million or 26.7%, primarily due to higher call center costs in
U.K./Ireland
.
|
|
Year ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
in millions
|
||||||
Liberty Global:
|
|
|
|
||||
Performance-based incentive awards (a)
|
$
|
23.9
|
|
|
$
|
150.6
|
|
Non-performance based share-based incentive awards
|
93.8
|
|
|
96.4
|
|
||
Other (b)
|
13.7
|
|
|
—
|
|
||
Total Liberty Global
|
131.4
|
|
|
247.0
|
|
||
Telenet share-based incentive awards (c)
|
20.7
|
|
|
12.2
|
|
||
Other
|
10.1
|
|
|
8.9
|
|
||
Total
|
$
|
162.2
|
|
|
$
|
268.1
|
|
Included in:
|
|
|
|
||||
Other operating expenses
|
$
|
4.7
|
|
|
$
|
3.4
|
|
Total SG&A expenses
|
157.5
|
|
|
264.7
|
|
||
Total
|
$
|
162.2
|
|
|
$
|
268.1
|
|
(a)
|
Includes share-based compensation expense related to
PSU
s, the
Challenge Performance Awards
and
PGUs
.
|
(b)
|
Represents annual incentive compensation and defined contribution plan liabilities that were settled with Liberty Global ordinary shares.
|
(c)
|
Represents the share-based compensation expense associated with Telenet’s share-based incentive awards.
|
|
Year ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Cross-currency and interest rate derivative contracts (a)
|
$
|
(1,145.6
|
)
|
|
$
|
668.5
|
|
Equity-related derivative instruments:
|
|
|
|
||||
ITV Collar
|
215.0
|
|
|
351.5
|
|
||
Sumitomo Collar
|
(77.4
|
)
|
|
(25.6
|
)
|
||
Lionsgate Forward
|
(11.4
|
)
|
|
10.1
|
|
||
Other
|
(3.9
|
)
|
|
1.6
|
|
||
Total equity-related derivative instruments (b)
|
122.3
|
|
|
337.6
|
|
||
Foreign currency forward and option contracts
|
(30.2
|
)
|
|
17.0
|
|
||
Other
|
0.7
|
|
|
(0.8
|
)
|
||
Total
|
$
|
(1,052.8
|
)
|
|
$
|
1,022.3
|
|
(a)
|
The loss during
2017
is primarily attributable to the net effect of (i) a net loss associated with changes in the relative value of certain currencies and (ii) a net gain associated with changes in certain market interest rates. In addition, the loss during
2017
includes a net gain of
$168.4 million
resulting from changes in our credit risk valuation adjustments. The gain during
2016
is primarily attributable to the net effect of (a) a net gain associated with changes in the relative value of certain currencies and (b) a net loss associated with changes in certain market interest rates. In addition, the gain during
2016
includes a net loss of
$26.5 million
resulting from changes in our credit risk valuation adjustments.
|
(b)
|
For information concerning the factors that impact the valuations of our equity-related derivative instruments, see note
9
to our consolidated financial statements.
|
|
Year ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Intercompany payables and receivables denominated in a currency other than the entity’s functional currency (a)
|
$
|
(874.3
|
)
|
|
$
|
731.3
|
|
U.S. dollar denominated debt issued by euro functional currency entities
|
551.2
|
|
|
(411.9
|
)
|
||
U.S. dollar denominated debt issued by British pound sterling functional currency entities
|
351.9
|
|
|
(1,105.7
|
)
|
||
British pound sterling denominated debt issued by a U.S. dollar functional currency entity
|
(125.5
|
)
|
|
251.2
|
|
||
Cash and restricted cash denominated in a currency other than the entity’s functional currency
|
(105.9
|
)
|
|
203.2
|
|
||
Yen denominated debt issued by a U.S. dollar functional currency entity
|
(20.9
|
)
|
|
(40.3
|
)
|
||
Euro denominated debt issued by British pound sterling functional currency entities
|
20.2
|
|
|
75.7
|
|
||
Other
|
21.8
|
|
|
(29.8
|
)
|
||
Total
|
$
|
(181.5
|
)
|
|
$
|
(326.3
|
)
|
(a)
|
Amounts primarily relate to (i) loans between certain of our non-operating subsidiaries in the U.S. and Europe and (ii) loans between certain of our non-operating and operating subsidiaries in Europe, which generally are denominated in the currency of the applicable operating subsidiary.
|
(a)
|
Amounts for
2017
and
2016
include gains of $12.7 million and $84.4 million, respectively, related to investments that were sold during the respective year.
|
(a)
|
Amount in
2017
includes the net effect of
(i) $
64.3 million
, representing
100%
of the interest income earned on the
VodafoneZiggo JV Receivable
, (ii)
100%
of the share-based compensation expense associated with
Liberty Global
awards held by VodafoneZiggo JV employees who were formerly employees of
Liberty Global
, as these awards remain our responsibility, and (iii) our
50%
share of the remaining results of operations of the
VodafoneZiggo JV
.
During
2017
, the
VodafoneZiggo JV
generated (a) revenue of $
4,512.5 million
, (b) Adjusted OIBDA of $
1,910.6 million
, (c) operating income of $
217.6 million
, (d) net non-operating expenses of $
580.5 million
(including $
650.1 million
of interest expense) and (e) a net loss of $
259.3 million
. The VodafoneZiggo JV’s operating income includes depreciation and amortization of $
1,678.5 million
.
|
Cash and cash equivalents held by:
|
|
||
Liberty Global and unrestricted subsidiaries:
|
|
||
Liberty Global (a)
|
$
|
10.8
|
|
Unrestricted subsidiaries (b)
|
1,333.2
|
|
|
Total Liberty Global and unrestricted subsidiaries
|
1,344.0
|
|
|
Borrowing groups (c):
|
|
||
Telenet
|
100.5
|
|
|
UPC Holding
|
14.8
|
|
|
Virgin Media (d)
|
21.2
|
|
|
Total borrowing groups
|
136.5
|
|
|
Total cash and cash equivalents
|
$
|
1,480.5
|
|
(a)
|
Represents the amount held by
Liberty Global
on a standalone basis.
|
(b)
|
Represents the aggregate amount held by subsidiaries that are outside of our borrowing groups.
|
(c)
|
Except as otherwise noted, represents the aggregate amounts held by the parent entity and restricted subsidiaries of our borrowing groups.
|
(d)
|
The
Virgin Media
borrowing group includes certain subsidiaries of
Virgin Media
, but excludes the parent entity,
Virgin Media
Inc.
|
|
Year ended December 31,
|
|
|
||||||||
|
2018
|
|
2017
|
|
Change
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
$
|
3,985.0
|
|
|
$
|
3,442.7
|
|
|
$
|
542.3
|
|
Net cash provided by investing activities
|
601.5
|
|
|
781.0
|
|
|
(179.5
|
)
|
|||
Net cash used by financing activities
|
(6,286.6
|
)
|
|
(4,504.2
|
)
|
|
(1,782.4
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
(43.2
|
)
|
|
114.2
|
|
|
(157.4
|
)
|
|||
Net decrease in cash and cash equivalents and restricted cash
|
$
|
(1,743.3
|
)
|
|
$
|
(166.3
|
)
|
|
$
|
(1,577.0
|
)
|
|
Year ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Property and equipment additions
|
$
|
3,705.6
|
|
|
$
|
3,703.5
|
|
Assets acquired under capital-related vendor financing arrangements
|
(2,175.5
|
)
|
|
(2,336.2
|
)
|
||
Assets acquired under capital leases
|
(102.4
|
)
|
|
(106.7
|
)
|
||
Changes in current liabilities related to capital expenditures
|
25.3
|
|
|
(10.6
|
)
|
||
Capital expenditures
|
$
|
1,453.0
|
|
|
$
|
1,250.0
|
|
|
|
|
|
||||
Capital expenditures, net:
|
|
|
|
||||
Third-party payments
|
$
|
1,552.7
|
|
|
$
|
1,586.5
|
|
Proceeds received for transfers to related parties (a)
|
(99.7
|
)
|
|
(336.5
|
)
|
||
Total capital expenditures, net
|
$
|
1,453.0
|
|
|
$
|
1,250.0
|
|
(a)
|
Primarily relates to transfers of centrally-procured property and equipment to our discontinued operations and the
VodafoneZiggo JV
.
|
|
Year ended December 31,
|
|
|
||||||||
|
2017
|
|
2016
|
|
Change
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
$
|
3,442.7
|
|
|
$
|
3,873.7
|
|
|
$
|
(431.0
|
)
|
Net cash provided (used) by investing activities
|
781.0
|
|
|
(6,000.1
|
)
|
|
6,781.1
|
|
|||
Net cash provided (used) by financing activities
|
(4,504.2
|
)
|
|
1,336.8
|
|
|
(5,841.0
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
114.2
|
|
|
(40.1
|
)
|
|
154.3
|
|
|||
Net decrease in cash and cash equivalents and restricted cash
|
$
|
(166.3
|
)
|
|
$
|
(829.7
|
)
|
|
$
|
663.4
|
|
|
Year ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Property and equipment additions
|
$
|
3,703.5
|
|
|
$
|
3,733.8
|
|
Assets acquired under capital-related vendor financing arrangements
|
(2,336.2
|
)
|
|
(1,811.2
|
)
|
||
Assets acquired under capital leases
|
(106.7
|
)
|
|
(100.4
|
)
|
||
Changes in current liabilities related to capital expenditures
|
(10.6
|
)
|
|
(282.3
|
)
|
||
Capital expenditures
|
$
|
1,250.0
|
|
|
$
|
1,539.9
|
|
|
|
|
|
||||
Capital expenditures, net:
|
|
|
|
||||
Third-party payments
|
$
|
1,586.5
|
|
|
$
|
1,738.2
|
|
Proceeds received for transfers to related parties (a)
|
(336.5
|
)
|
|
(198.3
|
)
|
||
Total capital expenditures, net
|
$
|
1,250.0
|
|
|
$
|
1,539.9
|
|
(a)
|
Primarily relates to transfers of centrally-procured property and equipment to our discontinued operations and the
VodafoneZiggo JV
.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Net cash provided by operating activities of our continuing operations (a)
|
$
|
3,985.0
|
|
|
$
|
3,442.7
|
|
|
$
|
3,873.7
|
|
Cash payments for direct acquisition and disposition costs
|
23.0
|
|
|
8.7
|
|
|
29.3
|
|
|||
Expenses financed by an intermediary (b)
|
1,883.7
|
|
|
1,343.9
|
|
|
748.8
|
|
|||
Capital expenditures, net
|
(1,453.0
|
)
|
|
(1,250.0
|
)
|
|
(1,539.9
|
)
|
|||
Principal payments on amounts financed by vendors and intermediaries
|
(4,258.0
|
)
|
|
(2,721.5
|
)
|
|
(1,870.5
|
)
|
|||
Principal payments on certain capital leases
|
(72.9
|
)
|
|
(78.6
|
)
|
|
(103.9
|
)
|
|||
Adjusted free cash flow
|
$
|
107.8
|
|
|
$
|
745.2
|
|
|
$
|
1,137.5
|
|
(a)
|
Amounts include interest payments related to debt that has been or may be repaid in connection with the completion of the dispositions of
UPC Austria
, the
Vodafone Disposal Group
and
UPC DTH
. These interest payments have not been allocated to discontinued operations.
|
(b)
|
For purposes of our consolidated statements of cash flows, expenses financed by an intermediary are treated as hypothetical operating cash outflows and hypothetical financing cash inflows when the expenses are incurred. When we pay the financing intermediary, we record financing cash outflows in our consolidated statements of cash flows. For purposes of our adjusted free cash flow definition, we add back the hypothetical operating cash outflow when these financed expenses are incurred and deduct the financing cash outflows when we pay the financing intermediary.
|
|
Payments due during:
|
|
|
||||||||||||||||||||||||
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||||
|
in millions
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Debt (excluding interest)
|
$
|
3,537.5
|
|
|
$
|
269.8
|
|
|
$
|
2,320.2
|
|
|
$
|
673.3
|
|
|
$
|
108.7
|
|
|
$
|
22,405.8
|
|
|
$
|
29,315.3
|
|
Capital leases (excluding interest)
|
78.2
|
|
|
74.0
|
|
|
66.0
|
|
|
67.7
|
|
|
70.2
|
|
|
265.2
|
|
|
621.3
|
|
|||||||
Network and connectivity commitments
|
629.4
|
|
|
282.1
|
|
|
243.6
|
|
|
60.3
|
|
|
44.1
|
|
|
776.4
|
|
|
2,035.9
|
|
|||||||
Programming commitments
|
858.0
|
|
|
558.7
|
|
|
286.2
|
|
|
52.1
|
|
|
14.2
|
|
|
44.9
|
|
|
1,814.1
|
|
|||||||
Purchase commitments
|
742.8
|
|
|
243.9
|
|
|
88.5
|
|
|
31.9
|
|
|
20.4
|
|
|
45.5
|
|
|
1,173.0
|
|
|||||||
Operating leases
|
123.9
|
|
|
85.4
|
|
|
66.6
|
|
|
54.3
|
|
|
46.8
|
|
|
178.6
|
|
|
555.6
|
|
|||||||
Other commitments
|
27.0
|
|
|
3.2
|
|
|
0.5
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
31.0
|
|
|||||||
Total (a)
|
$
|
5,996.8
|
|
|
$
|
1,517.1
|
|
|
$
|
3,071.6
|
|
|
$
|
939.9
|
|
|
$
|
304.4
|
|
|
$
|
23,716.4
|
|
|
$
|
35,546.2
|
|
Projected cash interest payments on debt and capital lease obligations (b)
|
$
|
1,249.9
|
|
|
$
|
1,330.2
|
|
|
$
|
1,286.2
|
|
|
$
|
1,219.2
|
|
|
$
|
1,198.4
|
|
|
$
|
3,531.8
|
|
|
$
|
9,815.7
|
|
(a)
|
The commitments included in this table do not reflect any liabilities that are included in our
December 31, 2018
consolidated balance sheet other than debt and capital lease obligations. Our liability for uncertain tax positions in the various jurisdictions in which we operate (
$637.3 million
at
December 31, 2018
) has been excluded from the table as the amount and timing of any related payments are not subject to reasonable estimation.
|
(b)
|
Amounts are based on interest rates, interest payment dates, commitment fees and contractual maturities in effect as of
December 31, 2018
. These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods. In addition, the amounts presented do not include the impact of our interest rate derivative contracts, deferred financing costs, original issue premiums or discounts.
|
•
|
Impairment of property and equipment and intangible assets (including goodwill);
|
•
|
Costs associated with construction and installation activities;
|
•
|
Fair value measurements; and
|
•
|
Income tax accounting.
|
|
As of December 31,
|
||||
|
2018
|
|
2017
|
||
Spot rates:
|
|
|
|
||
Euro
|
0.8732
|
|
|
0.8318
|
|
British pound sterling
|
0.7846
|
|
|
0.7394
|
|
Swiss franc
|
0.9828
|
|
|
0.9736
|
|
Hungarian forint
|
280.21
|
|
|
258.41
|
|
Polish zloty
|
3.7454
|
|
|
3.4730
|
|
Czech koruna
|
22.471
|
|
|
21.243
|
|
Romanian lei
|
4.0640
|
|
|
3.8830
|
|
|
Year ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Average rates:
|
|
|
|
|
|
|||
Euro
|
0.8472
|
|
|
0.8852
|
|
|
0.9035
|
|
British pound sterling
|
0.7498
|
|
|
0.7767
|
|
|
0.7407
|
|
Swiss franc
|
0.9781
|
|
|
0.9847
|
|
|
0.9852
|
|
Hungarian forint
|
270.21
|
|
|
274.34
|
|
|
281.52
|
|
Polish zloty
|
3.6108
|
|
|
3.7766
|
|
|
3.9441
|
|
Czech koruna
|
21.734
|
|
|
23.374
|
|
|
24.437
|
|
Romanian lei
|
3.9430
|
|
|
4.0514
|
|
|
4.0594
|
|
(i)
|
an instantaneous increase (decrease) of 10% in the value of the Swiss franc, Polish zloty, Hungarian forint, Czech koruna and Romanian lei relative to the euro would have decreased (increased) the aggregate fair value of the
UPC Holding
cross-currency and interest rate derivative contracts by approximately
€420 million
(
$481 million
);
|
(ii)
|
an instantaneous increase (decrease) of 10% in the value of the euro relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
UPC Holding
cross-currency and interest rate derivative contracts by approximately
€242 million
(
$277 million
); and
|
(iii)
|
an instantaneous increase (decrease) of 10% in the value of the Swiss franc relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
UPC Holding
cross-currency and interest rate derivative contracts by approximately
€92 million
(
$105 million
).
|
(i)
|
an instantaneous increase (decrease) of 10% in the value of the euro relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
Telenet
cross-currency derivative contracts by approximately
€330 million
(
$378 million
); and
|
(ii)
|
an instantaneous increase (decrease) in the relevant base rate of 50 basis points (0.50%) would have increased (decreased) the aggregate fair value of the
Telenet
cross currency, interest rate cap and swap contracts by approximately
€106 million
(
$121 million
).
|
|
Payments (receipts) due during:
|
|
Total
|
||||||||||||||||||||||||
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
|||||||||||||||
|
in millions
|
||||||||||||||||||||||||||
Projected derivative cash payments (receipts), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-related (a)
|
$
|
(27.1
|
)
|
|
$
|
(116.3
|
)
|
|
$
|
(94.0
|
)
|
|
$
|
(113.8
|
)
|
|
$
|
(131.2
|
)
|
|
$
|
(163.1
|
)
|
|
$
|
(645.5
|
)
|
Principal-related (b)
|
5.7
|
|
|
62.5
|
|
|
(155.7
|
)
|
|
(243.7
|
)
|
|
(129.3
|
)
|
|
(787.4
|
)
|
|
(1,247.9
|
)
|
|||||||
Other (c)
|
19.3
|
|
|
(55.3
|
)
|
|
(489.2
|
)
|
|
(183.6
|
)
|
|
—
|
|
|
—
|
|
|
(708.8
|
)
|
|||||||
Total
|
$
|
(2.1
|
)
|
|
$
|
(109.1
|
)
|
|
$
|
(738.9
|
)
|
|
$
|
(541.1
|
)
|
|
$
|
(260.5
|
)
|
|
$
|
(950.5
|
)
|
|
$
|
(2,602.2
|
)
|
(a)
|
Includes (i) the cash flows of our interest rate cap,
swaption
, collar and swap contracts and (ii) the interest-related cash flows of our cross-currency and interest rate swap contracts.
|
(b)
|
Includes the principal-related cash flows of our cross-currency swap contracts.
|
(c)
|
Includes amounts related to our equity-related derivative instruments and foreign currency forward contracts. We may elect to use cash or the collective value of the related shares and equity-related derivative instrument to settle the
ITV Collar Loan
and the
Lionsgate Loan
.
|
Item 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
Item 9A.
|
CONTROLS AND PROCEDURES
|
Item 9B.
|
OTHER INFORMATION
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,480.5
|
|
|
$
|
1,672.4
|
|
Trade receivables, net
|
1,342.1
|
|
|
1,404.5
|
|
||
Derivative instruments (note 8)
|
394.2
|
|
|
494.4
|
|
||
Prepaid expenses
|
171.4
|
|
|
133.1
|
|
||
Current assets of discontinued operations (note 6)
|
356.5
|
|
|
276.0
|
|
||
Other current assets (notes 4 and 7)
|
396.7
|
|
|
351.2
|
|
||
Total current assets
|
4,141.4
|
|
|
4,331.6
|
|
||
Investments and related notes receivable (including $1,174.8 million and $2,315.3 million, respectively, measured at fair value on a recurring basis) (note 7)
|
5,121.8
|
|
|
6,671.4
|
|
||
Property and equipment, net (note 10)
|
13,878.9
|
|
|
14,149.0
|
|
||
Goodwill (note 10)
|
13,715.8
|
|
|
14,354.1
|
|
||
Deferred tax assets (note 12)
|
2,488.2
|
|
|
3,133.1
|
|
||
Long-term assets of discontinued operations (note 6)
|
10,174.6
|
|
|
11,237.4
|
|
||
Other assets, net (notes 4, 8, 10 and 12)
|
3,632.9
|
|
|
3,720.2
|
|
||
Total assets
|
$
|
53,153.6
|
|
|
$
|
57,596.8
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
874.3
|
|
|
$
|
926.0
|
|
Deferred revenue
|
847.1
|
|
|
936.6
|
|
||
Current portion of debt and capital lease obligations (note 11)
|
3,615.2
|
|
|
3,667.5
|
|
||
Accrued capital expenditures
|
543.2
|
|
|
580.8
|
|
||
Current liabilities of discontinued operations (note 6)
|
1,967.5
|
|
|
1,635.9
|
|
||
Other accrued and current liabilities (notes 8 and 15)
|
2,458.8
|
|
|
2,219.0
|
|
||
Total current liabilities
|
10,306.1
|
|
|
9,965.8
|
|
||
Long-term debt and capital lease obligations (note 11)
|
26,190.0
|
|
|
28,977.0
|
|
||
Long-term liabilities of discontinued operations (note 6)
|
10,072.4
|
|
|
10,014.4
|
|
||
Other long-term liabilities (notes 8, 12, 15 and 16)
|
2,436.8
|
|
|
2,246.6
|
|
||
Total liabilities
|
49,005.3
|
|
|
51,203.8
|
|
||
|
|
|
|
||||
Commitments and contingencies (notes 5, 8, 11, 12, 16 and 18)
|
|
|
|
||||
|
|
|
|
||||
Equity (note 13):
|
|
|
|
||||
Liberty Global shareholders:
|
|
|
|
||||
Liberty Global Shares — Class A, $0.01 nominal value. Issued and outstanding 204,450,499 and 219,668,579 shares, respectively
|
2.0
|
|
|
2.2
|
|
||
Liberty Global Shares — Class B, $0.01 nominal value. Issued and outstanding 11,099,593 and 11,102,619 shares, respectively
|
0.1
|
|
|
0.1
|
|
||
Liberty Global Shares — Class C, $0.01 nominal value. Issued and outstanding 531,174,389 and 584,332,055 shares, respectively
|
5.3
|
|
|
5.8
|
|
||
Additional paid-in capital
|
9,214.5
|
|
|
11,358.6
|
|
||
Accumulated deficit
|
(5,172.2
|
)
|
|
(6,217.6
|
)
|
||
Accumulated other comprehensive earnings, net of taxes
|
631.8
|
|
|
1,656.0
|
|
||
Treasury shares, at cost
|
(0.1
|
)
|
|
(0.1
|
)
|
||
Total Liberty Global shareholders
|
4,681.4
|
|
|
6,805.0
|
|
||
Noncontrolling interests
|
(533.1
|
)
|
|
(412.0
|
)
|
||
Total equity
|
4,148.3
|
|
|
6,393.0
|
|
||
Total liabilities and equity
|
$
|
53,153.6
|
|
|
$
|
57,596.8
|
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions, except per share amounts
|
||||||||||
|
|
|
|
|
|
||||||
Revenue (notes 4, 7 and 19)
|
$
|
11,957.9
|
|
|
$
|
11,276.4
|
|
|
$
|
13,731.1
|
|
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below):
|
|
|
|
|
|
||||||
Programming and other direct costs of services
|
3,246.1
|
|
|
2,973.6
|
|
|
3,499.4
|
|
|||
Other operating (note 14)
|
1,717.2
|
|
|
1,659.5
|
|
|
1,924.8
|
|
|||
Selling, general and administrative (
SG&A
) (note 14)
|
2,049.1
|
|
|
1,980.4
|
|
|
2,494.6
|
|
|||
Depreciation and amortization (note 10)
|
3,858.2
|
|
|
3,790.6
|
|
|
4,117.7
|
|
|||
Impairment, restructuring and other operating items, net (notes 5, 15 and 16)
|
248.2
|
|
|
79.9
|
|
|
124.5
|
|
|||
|
11,118.8
|
|
|
10,484.0
|
|
|
12,161.0
|
|
|||
Operating income
|
839.1
|
|
|
792.4
|
|
|
1,570.1
|
|
|||
Non-operating income (expense):
|
|
|
|
|
|
||||||
Interest expense
|
(1,478.7
|
)
|
|
(1,416.1
|
)
|
|
(1,866.1
|
)
|
|||
Realized and unrealized
gains (losses)
on derivative instruments, net (note 8)
|
1,125.8
|
|
|
(1,052.8
|
)
|
|
1,022.3
|
|
|||
Foreign currency transaction gains (l
osses)
, net
|
90.4
|
|
|
(181.5
|
)
|
|
(326.3
|
)
|
|||
Realized and unrealized
gains (losses)
due to changes in fair values of certain investments and debt, net (notes 7, 9 and 11)
|
(384.5
|
)
|
|
43.4
|
|
|
(456.1
|
)
|
|||
Losses on debt modification and extinguishment, net (note 11)
|
(65.0
|
)
|
|
(252.2
|
)
|
|
(233.8
|
)
|
|||
Share of results of affiliates, net (note 7)
|
(8.7
|
)
|
|
(95.2
|
)
|
|
(111.6
|
)
|
|||
Gain on the VodafoneZiggo JV Transaction (note 6)
|
—
|
|
|
4.5
|
|
|
520.8
|
|
|||
Other income, net
|
43.4
|
|
|
46.4
|
|
|
124.0
|
|
|||
|
(677.3
|
)
|
|
(2,903.5
|
)
|
|
(1,326.8
|
)
|
|||
Earnings (loss) from continuing operations before income taxes
|
161.8
|
|
|
(2,111.1
|
)
|
|
243.3
|
|
|||
Income tax benefit (
expense)
(note 12)
|
(1,573.3
|
)
|
|
(238.9
|
)
|
|
1,407.0
|
|
|||
Earnings (loss)
from continuing operations
|
(1,411.5
|
)
|
|
(2,350.0
|
)
|
|
1,650.3
|
|
|||
Discontinued operations (note 6):
|
|
|
|
|
|
||||||
Earnings (loss) from discontinued operations, net of taxes
|
1,163.4
|
|
|
(370.6
|
)
|
|
117.0
|
|
|||
Gain on disposal of discontinued operations, net of taxes
|
1,098.1
|
|
|
—
|
|
|
—
|
|
|||
|
2,261.5
|
|
|
(370.6
|
)
|
|
117.0
|
|
|||
Net earnings (loss)
|
850.0
|
|
|
(2,720.6
|
)
|
|
1,767.3
|
|
|||
Net earnings
attributable to noncontrolling interests
|
(124.7
|
)
|
|
(57.5
|
)
|
|
(62.0
|
)
|
|||
Net earnings (loss) attributable to Liberty Global shareholders
|
$
|
725.3
|
|
|
$
|
(2,778.1
|
)
|
|
$
|
1,705.3
|
|
|
|
|
|
|
|
||||||
Basic earnings (loss) from continuing operations attributable to Liberty Global shareholders per share (note 3)
|
$
|
(1.97
|
)
|
|
$
|
(2.86
|
)
|
|
$
|
1.83
|
|
|
|
|
|
|
|
||||||
Diluted earnings (loss) from continuing operations attributable to Liberty Global shareholders per share (note 3)
|
$
|
(1.97
|
)
|
|
$
|
(2.86
|
)
|
|
$
|
1.81
|
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Net earnings (loss)
|
$
|
850.0
|
|
|
$
|
(2,720.6
|
)
|
|
$
|
1,767.3
|
|
Other comprehensive earnings (loss), net of taxes (note 17):
|
|
|
|
|
|
||||||
Continuing operations:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
(897.9
|
)
|
|
1,898.7
|
|
|
(1,909.8
|
)
|
|||
Reclassification adjustments included in net earnings (loss) (note 6)
|
(2.3
|
)
|
|
(2.0
|
)
|
|
714.2
|
|
|||
Pension-related adjustments and other
|
(17.7
|
)
|
|
17.7
|
|
|
(2.4
|
)
|
|||
Other comprehensive earnings (loss) from continuing operations
|
(917.9
|
)
|
|
1,914.4
|
|
|
(1,198.0
|
)
|
|||
Other comprehensive
earnings (loss) from discontinued operations (note 6)
|
(106.1
|
)
|
|
30.4
|
|
|
(73.4
|
)
|
|||
Other comprehensive earnings (loss)
|
(1,024.0
|
)
|
|
1,944.8
|
|
|
(1,271.4
|
)
|
|||
Comprehensive earnings (loss)
|
(174.0
|
)
|
|
(775.8
|
)
|
|
495.9
|
|
|||
Comprehensive
earnings
attributable to noncontrolling interests
|
(124.9
|
)
|
|
(59.2
|
)
|
|
(58.9
|
)
|
|||
Comprehensive earnings (loss) attributable to Liberty Global shareholders
|
$
|
(298.9
|
)
|
|
$
|
(835.0
|
)
|
|
$
|
437.0
|
|
|
Liberty Global shareholders
|
|
Non-controlling
interests
|
|
Total
equity
|
||||||||||||||||||||||||||||||
|
Liberty Global Shares
|
|
LiLAC Shares
|
|
Additional
paid-in
capital
|
|
Accumulated
deficit
|
|
Accumulated
other
comprehensive
earnings (loss),
net of taxes
|
|
Treasury shares, at cost
|
|
Total Liberty Global
shareholders
|
|
|||||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1, 2016
|
$
|
8.5
|
|
|
$
|
0.4
|
|
|
$
|
14,908.1
|
|
|
$
|
(5,160.1
|
)
|
|
$
|
895.9
|
|
|
$
|
(0.4
|
)
|
|
$
|
10,652.4
|
|
|
$
|
(478.1
|
)
|
|
$
|
10,174.3
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
1,705.3
|
|
|
—
|
|
|
—
|
|
|
1,705.3
|
|
|
62.0
|
|
|
1,767.3
|
|
|||||||||
Other comprehensive loss, net of taxes
(note 17)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,268.3
|
)
|
|
—
|
|
|
(1,268.3
|
)
|
|
(3.1
|
)
|
|
(1,271.4
|
)
|
|||||||||
Impact of the C&W Acquisition (note 5)
|
1.1
|
|
|
0.1
|
|
|
4,488.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,490.1
|
|
|
1,451.8
|
|
|
5,941.9
|
|
|||||||||
Repurchase and cancellation of Liberty Global ordinary shares (note 13)
|
(0.6
|
)
|
|
—
|
|
|
(2,088.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,089.5
|
)
|
|
—
|
|
|
(2,089.5
|
)
|
|||||||||
Share-based compensation (note 14)
|
—
|
|
|
—
|
|
|
269.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
269.0
|
|
|
—
|
|
|
269.0
|
|
|||||||||
Liberty Global call option contracts
|
—
|
|
|
—
|
|
|
119.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
119.1
|
|
|
—
|
|
|
119.1
|
|
|||||||||
Impact of the LiLAC Distribution (note 5)
|
—
|
|
|
1.2
|
|
|
(1.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Adjustments due to changes in subsidiaries’ equity and other, net (note 13)
|
(0.1
|
)
|
|
—
|
|
|
(116.8
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(116.8
|
)
|
|
(61.9
|
)
|
|
(178.7
|
)
|
|||||||||
Balance at December 31, 2016
|
$
|
8.9
|
|
|
$
|
1.7
|
|
|
$
|
17,578.2
|
|
|
$
|
(3,454.8
|
)
|
|
$
|
(372.4
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
13,761.3
|
|
|
$
|
970.7
|
|
|
$
|
14,732.0
|
|
|
Liberty Global shareholders
|
|
Non-controlling
interests
|
|
Total
equity
|
||||||||||||||||||||||||||||||
|
Liberty Global Shares
|
|
LiLAC Shares
|
|
Additional
paid-in
capital
|
|
Accumulated
deficit
|
|
Accumulated
other
comprehensive
earnings (loss),
net of taxes
|
|
Treasury shares, at cost
|
|
Total Liberty Global
shareholders
|
|
|||||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1, 2017, before effect of accounting change
|
$
|
8.9
|
|
|
$
|
1.7
|
|
|
$
|
17,578.2
|
|
|
$
|
(3,454.8
|
)
|
|
$
|
(372.4
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
13,761.3
|
|
|
$
|
970.7
|
|
|
$
|
14,732.0
|
|
Accounting change (note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
15.3
|
|
|
—
|
|
|
—
|
|
|
15.3
|
|
|
—
|
|
|
15.3
|
|
|||||||||
Balance at January 1, 2017, as adjusted for accounting change
|
8.9
|
|
|
1.7
|
|
|
17,578.2
|
|
|
(3,439.5
|
)
|
|
(372.4
|
)
|
|
(0.3
|
)
|
|
13,776.6
|
|
|
970.7
|
|
|
14,747.3
|
|
|||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,778.1
|
)
|
|
—
|
|
|
—
|
|
|
(2,778.1
|
)
|
|
57.5
|
|
|
(2,720.6
|
)
|
|||||||||
Other comprehensive earnings, net of taxes
(note 17)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,943.1
|
|
|
—
|
|
|
1,943.1
|
|
|
1.7
|
|
|
1,944.8
|
|
|||||||||
Impact of the Split-off Transaction (note 6)
|
—
|
|
|
(1.7
|
)
|
|
(3,346.8
|
)
|
|
—
|
|
|
85.3
|
|
|
—
|
|
|
(3,263.2
|
)
|
|
(1,360.9
|
)
|
|
(4,624.1
|
)
|
|||||||||
Repurchase and cancellation of Liberty Global ordinary shares (note 13)
|
(0.8
|
)
|
|
—
|
|
|
(2,947.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,948.2
|
)
|
|
—
|
|
|
(2,948.2
|
)
|
|||||||||
Share-based compensation (note 14)
|
—
|
|
|
—
|
|
|
155.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
155.9
|
|
|
—
|
|
|
155.9
|
|
|||||||||
Adjustments due to changes in subsidiaries’ equity and other, net
|
—
|
|
|
—
|
|
|
(81.3
|
)
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(81.1
|
)
|
|
(81.0
|
)
|
|
(162.1
|
)
|
|||||||||
Balance at December 31, 2017
|
$
|
8.1
|
|
|
$
|
—
|
|
|
$
|
11,358.6
|
|
|
$
|
(6,217.6
|
)
|
|
$
|
1,656.0
|
|
|
$
|
(0.1
|
)
|
|
$
|
6,805.0
|
|
|
$
|
(412.0
|
)
|
|
$
|
6,393.0
|
|
|
Liberty Global shareholders
|
|
Non-controlling
interests
|
|
Total
equity
|
||||||||||||||||||||||||||||||||||
|
Ordinary shares
|
|
Additional
paid-in
capital
|
|
Accumulated
deficit
|
|
Accumulated
other
comprehensive
earnings,
net of taxes
|
|
Treasury shares, at cost
|
|
Total Liberty Global
shareholders
|
|
|||||||||||||||||||||||||||
|
Class A
|
|
Class B
|
|
Class C
|
||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance at January 1, 2018, before effect of accounting change
|
$
|
2.2
|
|
|
$
|
0.1
|
|
|
$
|
5.8
|
|
|
$
|
11,358.6
|
|
|
$
|
(6,217.6
|
)
|
|
$
|
1,656.0
|
|
|
$
|
(0.1
|
)
|
|
$
|
6,805.0
|
|
|
$
|
(412.0
|
)
|
|
$
|
6,393.0
|
|
Accounting change (note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
320.1
|
|
|
—
|
|
|
—
|
|
|
320.1
|
|
|
4.4
|
|
|
324.5
|
|
||||||||||
Balance at January 1, 2018, as adjusted for accounting change
|
2.2
|
|
|
0.1
|
|
|
5.8
|
|
|
11,358.6
|
|
|
(5,897.5
|
)
|
|
1,656.0
|
|
|
(0.1
|
)
|
|
7,125.1
|
|
|
(407.6
|
)
|
|
6,717.5
|
|
||||||||||
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
725.3
|
|
|
—
|
|
|
—
|
|
|
725.3
|
|
|
124.7
|
|
|
850.0
|
|
||||||||||
Other comprehensive loss, net of taxes (note 17)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,024.2
|
)
|
|
—
|
|
|
(1,024.2
|
)
|
|
0.2
|
|
|
(1,024.0
|
)
|
||||||||||
Repurchase and cancellation of Liberty Global ordinary shares (note 13)
|
(0.2
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
(2,009.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,010.0
|
)
|
|
—
|
|
|
(2,010.0
|
)
|
||||||||||
Distributions by subsidiaries to noncontrolling interest owners
(note 13)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(298.4
|
)
|
|
(298.4
|
)
|
||||||||||
Repurchases by Telenet of its outstanding shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(294.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(294.0
|
)
|
|
35.4
|
|
|
(258.6
|
)
|
||||||||||
Share-based compensation (note 14)
|
—
|
|
|
—
|
|
|
—
|
|
|
154.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154.4
|
|
|
—
|
|
|
154.4
|
|
||||||||||
Adjustments due to changes in subsidiaries’ equity and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
4.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.8
|
|
|
12.6
|
|
|
17.4
|
|
||||||||||
Balance at December 31, 2018
|
$
|
2.0
|
|
|
$
|
0.1
|
|
|
$
|
5.3
|
|
|
$
|
9,214.5
|
|
|
$
|
(5,172.2
|
)
|
|
$
|
631.8
|
|
|
$
|
(0.1
|
)
|
|
$
|
4,681.4
|
|
|
$
|
(533.1
|
)
|
|
$
|
4,148.3
|
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net earnings (loss)
|
$
|
850.0
|
|
|
$
|
(2,720.6
|
)
|
|
$
|
1,767.3
|
|
Earnings (loss) from discontinued operations
|
2,261.5
|
|
|
(370.6
|
)
|
|
117.0
|
|
|||
Earnings (loss) from continuing operations
|
(1,411.5
|
)
|
|
(2,350.0
|
)
|
|
1,650.3
|
|
|||
Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities from continuing operations:
|
|
|
|
|
|
||||||
Share-based compensation expense
|
206.0
|
|
|
162.2
|
|
|
268.1
|
|
|||
Depreciation and amortization
|
3,858.2
|
|
|
3,790.6
|
|
|
4,117.7
|
|
|||
Impairment, restructuring and other operating items, net
|
248.2
|
|
|
79.9
|
|
|
124.5
|
|
|||
Amortization of deferred financing costs and non-cash interest
|
56.4
|
|
|
61.2
|
|
|
69.7
|
|
|||
Realized and unrealized losses (gains) on derivative instruments, net
|
(1,125.8
|
)
|
|
1,052.8
|
|
|
(1,022.3
|
)
|
|||
Foreign currency transaction losses (gains), net
|
(90.4
|
)
|
|
181.5
|
|
|
326.3
|
|
|||
Realized and unrealized losses (gains) due to changes in fair values of certain investments and debt, net
|
384.5
|
|
|
(43.4
|
)
|
|
456.1
|
|
|||
Losses on debt modification and extinguishment, net
|
65.0
|
|
|
252.2
|
|
|
233.8
|
|
|||
Share of results of affiliates, net
|
8.7
|
|
|
95.2
|
|
|
111.6
|
|
|||
Gain on the VodafoneZiggo JV Transaction
|
—
|
|
|
(4.5
|
)
|
|
(520.8
|
)
|
|||
Deferred income tax expense (benefit)
|
438.1
|
|
|
46.6
|
|
|
(1,428.4
|
)
|
|||
Changes in operating assets and liabilities, net of the effects of acquisitions and dispositions:
|
|
|
|
|
|
||||||
Receivables and other operating assets
|
635.4
|
|
|
470.6
|
|
|
362.8
|
|
|||
Payables and accruals
|
459.4
|
|
|
(651.7
|
)
|
|
(915.1
|
)
|
|||
Dividends from affiliates and others
|
252.8
|
|
|
299.5
|
|
|
39.4
|
|
|||
Net cash provided by operating activities of continuing operations
|
3,985.0
|
|
|
3,442.7
|
|
|
3,873.7
|
|
|||
Net cash provided by operating activities of discontinued operations
|
1,978.1
|
|
|
2,265.3
|
|
|
2,067.2
|
|
|||
Net cash provided by operating activities
|
5,963.1
|
|
|
5,708.0
|
|
|
5,940.9
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Proceeds received upon disposition of discontinued operation, net
|
2,058.2
|
|
|
—
|
|
|
—
|
|
|||
Capital expenditures
|
(1,453.0
|
)
|
|
(1,250.0
|
)
|
|
(1,539.9
|
)
|
|||
Investments in and loans to affiliates and others
|
(88.8
|
)
|
|
(118.3
|
)
|
|
(140.2
|
)
|
|||
Cash paid in connection with acquisitions, net of cash acquired
|
(82.5
|
)
|
|
(413.9
|
)
|
|
(1,393.4
|
)
|
|||
Sales of investments
|
36.2
|
|
|
25.5
|
|
|
147.3
|
|
|||
Distributions received from affiliates
|
—
|
|
|
1,569.4
|
|
|
—
|
|
|||
Equalization payment related to the VodafoneZiggo JV Transaction
|
—
|
|
|
845.3
|
|
|
—
|
|
|||
Cash and cash equivalents and restricted cash contributed to the VodafoneZiggo JV in connection with the VodafoneZiggo JV Transaction
|
—
|
|
|
—
|
|
|
(3,150.1
|
)
|
|||
Other investing activities, net
|
131.4
|
|
|
123.0
|
|
|
76.2
|
|
|||
Net cash provided (used) by investing activities of continuing operations
|
601.5
|
|
|
781.0
|
|
|
(6,000.1
|
)
|
|||
Net cash used by investing activities of discontinued operations
|
(514.2
|
)
|
|
(1,341.8
|
)
|
|
(1,043.3
|
)
|
|||
Net cash provided (used) by investing activities
|
$
|
87.3
|
|
|
$
|
(560.8
|
)
|
|
$
|
(7,043.4
|
)
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Repayments and repurchases of debt and capital lease obligations
|
$
|
(8,170.6
|
)
|
|
$
|
(8,177.5
|
)
|
|
$
|
(10,952.5
|
)
|
Borrowings of debt
|
4,396.5
|
|
|
7,215.4
|
|
|
14,802.7
|
|
|||
Repurchase of Liberty Global ordinary shares
|
(2,009.9
|
)
|
|
(2,976.2
|
)
|
|
(1,968.3
|
)
|
|||
Distributions by subsidiaries to noncontrolling interest owners
|
(290.3
|
)
|
|
(13.0
|
)
|
|
(13.2
|
)
|
|||
Repurchase by Telenet of its outstanding shares
|
(244.7
|
)
|
|
(36.5
|
)
|
|
(54.7
|
)
|
|||
Net cash received (paid) related to derivative instruments
|
112.8
|
|
|
(138.1
|
)
|
|
(251.5
|
)
|
|||
Payment of financing costs and debt premiums
|
(73.1
|
)
|
|
(249.6
|
)
|
|
(217.4
|
)
|
|||
Value-added taxes (
VAT
) paid on behalf of the VodafoneZiggo JV
|
—
|
|
|
(162.6
|
)
|
|
—
|
|
|||
Other financing activities, net
|
(7.3
|
)
|
|
33.9
|
|
|
(8.3
|
)
|
|||
Net cash provided (used) by financing activities of continuing operations
|
(6,286.6
|
)
|
|
(4,504.2
|
)
|
|
1,336.8
|
|
|||
Net cash provided (used) by financing activities of discontinued operations
|
96.8
|
|
|
(175.4
|
)
|
|
362.2
|
|
|||
Net cash provided (
used)
by financing activities
|
(6,189.8
|
)
|
|
(4,679.6
|
)
|
|
1,699.0
|
|
|||
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash:
|
|
|
|
|
|
||||||
Continuing operations
|
(43.2
|
)
|
|
114.2
|
|
|
(40.1
|
)
|
|||
Discontinued operations
|
(1.9
|
)
|
|
1.1
|
|
|
1.7
|
|
|||
Total
|
(45.1
|
)
|
|
115.3
|
|
|
(38.4
|
)
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents and restricted cash:
|
|
|
|
|
|
||||||
Continuing operations
|
(1,743.3
|
)
|
|
(166.3
|
)
|
|
(829.7
|
)
|
|||
Discontinued operations - Vodafone Disposal Group, UPC Austria and UPC DTH
|
1,558.8
|
|
|
761.7
|
|
|
1,081.6
|
|
|||
Discontinued operations - LiLAC Group
|
—
|
|
|
(12.5
|
)
|
|
306.2
|
|
|||
Total
|
$
|
(184.5
|
)
|
|
$
|
582.9
|
|
|
$
|
558.1
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents and restricted cash:
|
|
|
|
|
|
||||||
Beginning of year
|
$
|
1,682.8
|
|
|
$
|
1,087.4
|
|
|
$
|
835.5
|
|
Net increase (excluding, during 2017 and 2016, LiLAC Group activity related to cash balances included in discontinued operations)
|
(184.5
|
)
|
|
595.4
|
|
|
251.9
|
|
|||
End of year
|
$
|
1,498.3
|
|
|
$
|
1,682.8
|
|
|
$
|
1,087.4
|
|
|
|
|
|
|
|
||||||
Cash paid for interest:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
1,405.7
|
|
|
$
|
1,380.6
|
|
|
$
|
1,844.5
|
|
Discontinued operations
|
436.4
|
|
|
905.8
|
|
|
763.5
|
|
|||
Total
|
$
|
1,842.1
|
|
|
$
|
2,286.4
|
|
|
$
|
2,608.0
|
|
|
|
|
|
|
|
||||||
Net cash paid for taxes:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
309.0
|
|
|
$
|
269.7
|
|
|
$
|
231.1
|
|
Discontinued operations
|
55.1
|
|
|
143.4
|
|
|
209.6
|
|
|||
Total
|
$
|
364.1
|
|
|
$
|
413.1
|
|
|
$
|
440.7
|
|
|
|
|
|
|
|
||||||
Details of end of period cash and cash equivalents and restricted cash:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
1,480.5
|
|
|
$
|
1,672.4
|
|
|
$
|
1,076.6
|
|
Restricted cash included in other current assets and other assets, net
|
15.9
|
|
|
8.3
|
|
|
10.8
|
|
|||
Restricted cash included in current and long-term assets of discontinued operations
|
1.9
|
|
|
2.1
|
|
|
—
|
|
|||
Total cash and cash equivalents and restricted cash
|
$
|
1,498.3
|
|
|
$
|
1,682.8
|
|
|
$
|
1,087.4
|
|
•
|
When we enter into contracts to provide services to our customers, we often provide time-limited discounts or free service periods. Under previous accounting rules, we recognized revenue, net of discounts, during the promotional periods and did not recognize any revenue during free service periods. Under
ASU 2014-09
, revenue recognition for those contracts that contain substantive termination penalties is recognized uniformly over the contractual period.
For contracts that do not have substantive termination penalties, we continue to record the impacts of partial or full discounts during the applicable promotional periods.
|
•
|
When we enter into contracts to provide services to our customers, we often charge installation or other upfront fees. Under previous accounting rules, installation fees related to services provided over our cable networks were recognized as revenue during the period in which the installation occurred to the extent these fees were equal to or less than direct selling costs. Under
ASU 2014-09
, these fees are generally deferred and recognized as revenue over the contractual period, or longer if the upfront fee results in a material renewal right.
|
|
Balance at December 31, 2017
|
|
ASU 2014-09 Adjustments
|
|
Balance at January 1, 2018
|
|||||
|
in millions
|
|||||||||
Assets:
|
|
|
|
|
|
|||||
Trade receivables, net
|
$
|
1,404.5
|
|
|
(0.7
|
)
|
|
$
|
1,403.8
|
|
Current assets of discontinued operations
|
$
|
276.0
|
|
|
98.2
|
|
|
$
|
374.2
|
|
Other current assets
|
$
|
351.2
|
|
|
76.6
|
|
|
$
|
427.8
|
|
Investments and related note receivables (a)
|
$
|
6,671.4
|
|
|
191.2
|
|
|
$
|
6,862.6
|
|
Deferred tax assets
|
$
|
3,133.1
|
|
|
(16.0
|
)
|
|
$
|
3,117.1
|
|
Long-term assets of discontinued operations
|
$
|
11,237.4
|
|
|
29.1
|
|
|
$
|
11,266.5
|
|
Other assets, net
|
$
|
3,720.2
|
|
|
21.4
|
|
|
$
|
3,741.6
|
|
|
|
|
|
|
|
|||||
Liabilities:
|
|
|
|
|
|
|||||
Deferred revenue
|
$
|
936.6
|
|
|
5.6
|
|
|
$
|
942.2
|
|
Current liabilities of discontinued operations
|
$
|
1,635.9
|
|
|
26.7
|
|
|
$
|
1,662.6
|
|
Other accrued and current liabilities
|
$
|
2,219.0
|
|
|
1.2
|
|
|
$
|
2,220.2
|
|
Long-term liabilities of discontinued operations
|
$
|
10,014.4
|
|
|
39.1
|
|
|
$
|
10,053.5
|
|
Other long-term liabilities
|
$
|
2,246.6
|
|
|
2.7
|
|
|
$
|
2,249.3
|
|
|
|
|
|
|
|
|||||
Equity:
|
|
|
|
|
|
|||||
Accumulated deficit (a)
|
$
|
(6,217.6
|
)
|
|
320.1
|
|
|
$
|
(5,897.5
|
)
|
Noncontrolling interests
|
$
|
(412.0
|
)
|
|
4.4
|
|
|
$
|
(407.6
|
)
|
(a)
|
The
ASU 2014-09
adjustment amounts include the impact of our share of the
VodafoneZiggo JV
’s adjustment to its owners’ equity.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions, except share amounts
|
||||||||||
|
|
|
|
|
|
||||||
Earnings (loss) from continuing operations
|
$
|
(1,411.5
|
)
|
|
$
|
(2,350.0
|
)
|
|
$
|
1,650.3
|
|
Net earnings from continuing operations attributable to noncontrolling interests
|
(120.5
|
)
|
|
(71.4
|
)
|
|
(25.8
|
)
|
|||
Net earnings (loss) from continuing operations attributable to Liberty Global shareholders
|
$
|
(1,532.0
|
)
|
|
$
|
(2,421.4
|
)
|
|
$
|
1,624.5
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
778,675,957
|
|
|
847,894,601
|
|
|
889,790,968
|
|
|||
Diluted
|
778,675,957
|
|
|
847,894,601
|
|
|
899,969,654
|
|
Numerator:
|
|
||
Net earnings attributable to holders of Liberty Global Shares (basic EPS computation)
|
$
|
1,624.5
|
|
Interest expense on Virgin Media’s 6.50% convertible senior notes
|
1.7
|
|
|
Net earnings attributable to holders of Liberty Global Shares (diluted EPS computation)
|
$
|
1,626.2
|
|
|
|
||
Denominator:
|
|
||
Weighted average ordinary shares (basic EPS computation)
|
889,790,968
|
|
|
Incremental shares attributable to the assumed exercise and vesting of share incentive awards (treasury stock method)
|
7,819,514
|
|
|
Incremental shares attributable to the assumed conversion of Virgin Media’s 6.5% convertible senior notes
|
2,359,172
|
|
|
Weighted average ordinary shares (diluted EPS computation)
|
899,969,654
|
|
Cash and cash equivalents
|
$
|
160.1
|
|
Other current assets
|
148.3
|
|
|
Property and equipment, net
|
811.4
|
|
|
Goodwill (a)
|
330.7
|
|
|
Intangible assets subject to amortization, net:
|
|
||
Mobile spectrum (b)
|
261.0
|
|
|
Customer relationships (b)
|
115.0
|
|
|
Trademarks (b)
|
40.7
|
|
|
Other assets, net
|
10.5
|
|
|
Accrued and current liabilities
|
(290.0
|
)
|
|
Long-term liabilities
|
(93.4
|
)
|
|
Total purchase price (c)
|
$
|
1,494.3
|
|
(a)
|
The goodwill recognized in connection with the
BASE Acquisition
was primarily attributable to (i) the ability to take advantage of
BASE
’s existing mobile network to gain immediate access to potential customers and (ii) estimated synergy benefits through the integration of
BASE
with
Telenet
.
|
(b)
|
As of
February 11, 2016
, the weighted average useful life of
BASE
’s mobile spectrum, customer relationships and trademarks was approximately
11
years,
seven years
and
20
years, respectively.
|
(c)
|
Excludes direct acquisition costs of
$17.1 million
, including
$7.1 million
incurred during 2016, which is included in impairment, restructuring and other operating items, net, in our consolidated statement of operations.
|
Class A Liberty Global Shares (a)
|
$
|
1,167.2
|
|
Class C Liberty Global Shares (a)
|
2,803.5
|
|
|
Class A LiLAC Shares (a)
|
144.1
|
|
|
Class C LiLAC Shares (a)
|
375.3
|
|
|
Special Dividend (b)
|
193.8
|
|
|
Total
|
$
|
4,683.9
|
|
(a)
|
Represents the fair value of the
31,607,008
Class A
Liberty Global Shares
,
77,379,774
Class C
Liberty Global Shares
,
3,648,513
Class A
LiLAC Shares
and
8,939,316
Class C
LiLAC Shares
issued to
C&W
shareholders in connection with the
C&W Acquisition
. These amounts are based on the market price per share at closing on
May 16, 2016
of
$36.93
,
$36.23
,
$39.50
and
$41.98
, respectively.
|
(b)
|
The
Special Dividend
amount is based on
4,433,222,313
outstanding shares of
C&W
on
May 16, 2016
.
|
|
Year ended December 31, 2016
|
||
|
|
||
Revenue (in millions)
|
$
|
13,805.5
|
|
|
|
||
Net earnings from continuing operations attributable to Liberty Global shareholders (in millions)
|
$
|
1,621.0
|
|
|
|
||
Basic and diluted earnings from continuing operations attributable to Liberty Global shareholders per Liberty Global share:
|
|
||
Basic
|
$
|
1.82
|
|
Diluted
|
$
|
1.80
|
|
•
|
a reorganization agreement (the
Reorganization Agreement
), which provides for, among other things, the principal corporate transactions (including the internal restructuring) required to effect the
Split-off Transaction
, certain conditions to the
Split-off Transaction
and provisions governing the relationship between
Liberty Global
and
Liberty Latin America
with respect to and resulting from the
Split-off Transaction
;
|
•
|
a tax sharing agreement (the
Tax Sharing Agreement
), which governs the parties’ respective rights, responsibilities and obligations with respect to taxes and tax benefits, the filing of tax returns, the control of audits and other tax matters;
|
•
|
a services agreement (the
Services Agreement
), pursuant to which, for up to
two years
following the
Split-off Transaction
, with the option to renew for a
one
-year period,
Liberty Global
will provide
Liberty Latin America
with specified services, including access to
Liberty Global
’s procurement team and tools to leverage scale and take advantage of joint purchasing opportunities, certain management services, other services to support
Liberty Latin America
’s legal, tax, accounting and finance departments, and certain technical and information technology services (including software development services associated with
Horizon TV
, our next generation multimedia home gateway, management information systems, computer, data storage, and network and telecommunications services);
|
•
|
a sublease agreement (the
Sublease Agreement
), pursuant to which
Liberty Latin America
will sublease office space from
Liberty Global
in Denver, Colorado until May 31, 2031, subject to customary termination and notice provisions; and
|
•
|
a facilities sharing agreement (the
Facilities Sharing Agreement
), pursuant to which, for as long as the
Sublease Agreement
remains in effect,
Liberty Latin America
will pay a fee for the usage of certain facilities at the office space in Denver, Colorado.
|
|
Vodafone Disposal Group
|
|
UPC DTH
|
|
Total
|
||||||
|
in millions
|
||||||||||
Assets:
|
|
|
|
|
|
||||||
Current assets other than cash
|
$
|
348.0
|
|
|
$
|
8.5
|
|
|
$
|
356.5
|
|
Property and equipment, net
|
5,591.4
|
|
|
79.7
|
|
|
5,671.1
|
|
|||
Goodwill
|
3,986.7
|
|
|
—
|
|
|
3,986.7
|
|
|||
Other assets, net
|
509.4
|
|
|
7.4
|
|
|
516.8
|
|
|||
Total assets
|
$
|
10,435.5
|
|
|
$
|
95.6
|
|
|
$
|
10,531.1
|
|
|
|
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
||||||
Current portion of debt and capital lease obligations
|
$
|
809.0
|
|
|
$
|
11.2
|
|
|
$
|
820.2
|
|
Other accrued and current liabilities
|
1,114.8
|
|
|
32.5
|
|
|
1,147.3
|
|
|||
Long-term debt and capital lease obligations
|
9,037.1
|
|
|
37.5
|
|
|
9,074.6
|
|
|||
Other long-term liabilities
|
997.5
|
|
|
0.3
|
|
|
997.8
|
|
|||
Total liabilities
|
$
|
11,958.4
|
|
|
$
|
81.5
|
|
|
$
|
12,039.9
|
|
|
UPC Austria
|
|
Vodafone Disposal Group
|
|
UPC DTH
|
|
Total
|
||||||||
|
in millions
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Current assets other than cash
|
$
|
29.2
|
|
|
$
|
238.9
|
|
|
$
|
7.9
|
|
|
$
|
276.0
|
|
Property and equipment, net
|
451.9
|
|
|
5,290.1
|
|
|
96.3
|
|
|
5,838.3
|
|
||||
Goodwill
|
732.2
|
|
|
4,181.0
|
|
|
—
|
|
|
4,913.2
|
|
||||
Other assets, net
|
3.2
|
|
|
482.7
|
|
|
—
|
|
|
485.9
|
|
||||
Total assets
|
$
|
1,216.5
|
|
|
$
|
10,192.7
|
|
|
$
|
104.2
|
|
|
$
|
11,513.4
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Current portion of debt and capital lease obligations
|
$
|
0.8
|
|
|
$
|
486.9
|
|
|
$
|
12.6
|
|
|
$
|
500.3
|
|
Other accrued and current liabilities
|
77.7
|
|
|
1,022.3
|
|
|
35.6
|
|
|
1,135.6
|
|
||||
Long-term debt and capital lease obligations
|
1.5
|
|
|
9,026.1
|
|
|
46.4
|
|
|
9,074.0
|
|
||||
Other long-term liabilities
|
76.3
|
|
|
863.7
|
|
|
0.4
|
|
|
940.4
|
|
||||
Total liabilities
|
$
|
156.3
|
|
|
$
|
11,399.0
|
|
|
$
|
95.0
|
|
|
$
|
11,650.3
|
|
|
UPC Austria (a)
|
|
Vodafone Disposal Group
|
|
UPC DTH
|
|
Total
|
||||||||
|
in millions
|
||||||||||||||
Year ended December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
252.4
|
|
|
$
|
3,584.2
|
|
|
$
|
117.0
|
|
|
$
|
3,953.6
|
|
Operating income
|
$
|
139.0
|
|
|
$
|
1,787.0
|
|
|
$
|
11.7
|
|
|
$
|
1,937.7
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes
|
$
|
138.7
|
|
|
$
|
1,396.3
|
|
|
$
|
9.6
|
|
|
$
|
1,544.6
|
|
Income tax benefit (expense)
|
(23.3
|
)
|
|
(365.2
|
)
|
|
7.3
|
|
|
(381.2
|
)
|
||||
Net earnings
|
115.4
|
|
|
1,031.1
|
|
|
16.9
|
|
|
1,163.4
|
|
||||
Net earnings attributable to noncontrolling interests
|
(4.2
|
)
|
|
—
|
|
|
—
|
|
|
(4.2
|
)
|
||||
Net earnings attributable to Liberty Global shareholders
|
$
|
111.2
|
|
|
$
|
1,031.1
|
|
|
$
|
16.9
|
|
|
$
|
1,159.2
|
|
(a)
|
Includes the operating results of
UPC Austria
from January 1, 2018 through July 31, 2018, the date
UPC Austria
was sold.
|
|
UPC Austria
|
|
Vodafone Disposal Group
|
|
UPC DTH
|
|
LiLAC Group
|
|
Total
|
||||||||||
|
in millions
|
||||||||||||||||||
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
394.9
|
|
|
$
|
3,263.0
|
|
|
$
|
114.6
|
|
|
$
|
3,590.0
|
|
|
$
|
7,362.5
|
|
Operating income (loss)
|
$
|
150.0
|
|
|
$
|
976.0
|
|
|
$
|
11.7
|
|
|
$
|
(162.9
|
)
|
|
$
|
974.8
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) before income taxes
|
$
|
150.0
|
|
|
$
|
395.4
|
|
|
$
|
9.7
|
|
|
$
|
(651.1
|
)
|
|
$
|
(96.0
|
)
|
Income tax expense
|
(4.5
|
)
|
|
(66.1
|
)
|
|
—
|
|
|
(204.0
|
)
|
|
(274.6
|
)
|
|||||
Net earnings (loss)
|
145.5
|
|
|
329.3
|
|
|
9.7
|
|
|
(855.1
|
)
|
|
(370.6
|
)
|
|||||
Net loss (earnings) attributable to noncontrolling interests
|
(6.8
|
)
|
|
—
|
|
|
—
|
|
|
20.6
|
|
|
13.8
|
|
|||||
Net earnings (loss) attributable to Liberty Global shareholders
|
$
|
138.7
|
|
|
$
|
329.3
|
|
|
$
|
9.7
|
|
|
$
|
(834.5
|
)
|
|
$
|
(356.8
|
)
|
|
UPC Austria
|
|
Vodafone Disposal Group
|
|
UPC DTH
|
|
LiLAC Group
|
|
Total
|
||||||||||
|
in millions
|
||||||||||||||||||
Year ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
378.3
|
|
|
$
|
3,068.2
|
|
|
$
|
107.4
|
|
|
$
|
2,723.8
|
|
|
$
|
6,277.7
|
|
Operating income
|
$
|
143.0
|
|
|
$
|
748.4
|
|
|
$
|
7.3
|
|
|
$
|
315.3
|
|
|
$
|
1,214.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) before income taxes
|
$
|
142.6
|
|
|
$
|
256.2
|
|
|
$
|
5.4
|
|
|
$
|
(98.1
|
)
|
|
$
|
306.1
|
|
Income tax expense
|
(18.3
|
)
|
|
(41.7
|
)
|
|
—
|
|
|
(129.1
|
)
|
|
(189.1
|
)
|
|||||
Net earnings (loss)
|
124.3
|
|
|
214.5
|
|
|
5.4
|
|
|
(227.2
|
)
|
|
117.0
|
|
|||||
Net earnings attributable to noncontrolling interests
|
(7.9
|
)
|
|
—
|
|
|
—
|
|
|
(28.3
|
)
|
|
(36.2
|
)
|
|||||
Net earnings (loss) attributable to Liberty Global shareholders
|
$
|
116.4
|
|
|
$
|
214.5
|
|
|
$
|
5.4
|
|
|
$
|
(255.5
|
)
|
|
$
|
80.8
|
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
||||||
Basic earnings from discontinued operations attributable to Liberty Global shareholders per Liberty Global share
|
$
|
1.49
|
|
|
$
|
0.56
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
||||||
Diluted earnings from discontinued operations attributable to Liberty Global shareholders per share
|
$
|
1.49
|
|
|
$
|
0.56
|
|
|
$
|
0.37
|
|
|
Year ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
|
|
|
||||
Basic and diluted loss
from discontinued operations attributable to Liberty Global shareholders per LiLAC share
|
$
|
(4.86
|
)
|
|
$
|
(2.30
|
)
|
|
|
|
|
||||
Weighted average ordinary shares outstanding (LiLAC Shares) - basic and diluted
|
171,846,133
|
|
|
110,868,650
|
|
|
|
December 31,
|
||||||
Accounting Method
|
|
2018
|
|
2017
|
||||
|
in millions
|
|||||||
Equity (a):
|
|
|
|
|||||
VodafoneZiggo JV (b)
|
$
|
3,761.5
|
|
|
$
|
4,162.8
|
|
|
Other (c)
|
185.5
|
|
|
161.8
|
|
|||
Total — equity
|
3,947.0
|
|
|
4,324.6
|
|
|||
Fair value:
|
|
|
|
|||||
ITV plc (
ITV
) — subject to re-use rights
|
634.2
|
|
|
892.0
|
|
|||
ITI Neovision S.A. (
ITI Neovision
)
|
125.4
|
|
|
161.9
|
|
|||
Lions Gate Entertainment Corp (
Lionsgate
)
|
77.5
|
|
|
163.9
|
|
|||
Casa Systems, Inc. (
Casa
)
|
39.5
|
|
|
76.3
|
|
|||
Sumitomo Corporation (
Sumitomo
) (d)
|
—
|
|
|
776.5
|
|
|||
Other
|
298.2
|
|
|
244.7
|
|
|||
Total — fair value
|
1,174.8
|
|
|
2,315.3
|
|
|||
Cost (e)
|
—
|
|
|
31.5
|
|
|||
Total
|
$
|
5,121.8
|
|
|
$
|
6,671.4
|
|
(a)
|
At December 31, 2018, the carrying amount of our equity method investment in the
VodafoneZiggo JV
exceeded our proportionate share of that entity’s net assets by the amount of the
VodafoneZiggo JV Receivable
, as defined and described below. The carrying amounts of our other equity method investments did not materially exceed our proportionate share of the respective investee’s net assets at
December 31, 2018
and
2017
.
|
(b)
|
Amounts include a related-party euro-denominated note receivable (the
VodafoneZiggo JV Receivable
) with a principal amount of
$916.1 million
and
$1,081.9 million
, respectively, due from a subsidiary of the
VodafoneZiggo JV
to a subsidiary of
Liberty Global
. The
VodafoneZiggo JV Receivable
bears interest at
5.55%
and required
€100.0 million
(
$114.5 million
) of principal to be paid annually through December 31, 2019. In this regard, in December 2018, we received a
€100.0 million
(
$114.5 million
at the transaction date) principal payment on the
VodafoneZiggo JV Receivable
. In 2018, the agreement was amended to (i) eliminate the requirement to pay an annual principal payment of
€100.0 million
in 2019 and (ii) extend the final maturity date from January 16, 2027 to January 16, 2028. The accrued interest on the
VodafoneZiggo JV Receivable
will be payable in a manner mutually agreed upon by
Liberty Global
and the
VodafoneZiggo JV
. During
2018
, interest accrued on the
VodafoneZiggo JV Receivable
was
$59.6 million
, all of which was cash settled. For information regarding the impact of the adoption of
ASU 2014-09
on our accumulated deficit and our investment in the
VodafoneZiggo JV
, see note
2
.
|
(c)
|
Amounts include our equity method investment in a media production company that we refer to as “
All3Media
”, for which summarized financial information has been provided below.
All3Media
is a joint venture in which we own a
50%
interest.
|
(d)
|
At
December 31, 2017
, we owned
45,652,175
shares of
Sumitomo
common stock, representing less than
5%
of the then outstanding common stock. During 2018, we used all of these shares to settle the outstanding amounts under certain related borrowings.
|
(e)
|
As a result of the January 1, 2018 adoption of
ASU 2016-01
, all of our cost investments have been reclassified to fair value investments.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
VodafoneZiggo JV (a)
|
$
|
11.4
|
|
|
$
|
(70.1
|
)
|
|
$
|
—
|
|
Other
|
(20.1
|
)
|
|
(25.1
|
)
|
|
(111.6
|
)
|
|||
Total
|
$
|
(8.7
|
)
|
|
$
|
(95.2
|
)
|
|
$
|
(111.6
|
)
|
(a)
|
Amounts include the net effect of (i)
100%
of the interest income earned on the
VodafoneZiggo JV Receivable
, (ii)
100%
of the share-based compensation expense associated with
Liberty Global
awards held by
VodafoneZiggo JV
employees who were formerly employees of
Liberty Global
, as these awards remain our responsibility, and (iii) our
50%
share of the remaining results of operations of the
VodafoneZiggo JV
.
|
|
Year ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Revenue
|
$
|
4,602.2
|
|
|
$
|
4,512.5
|
|
Loss before income taxes
|
$
|
(467.8
|
)
|
|
$
|
(362.9
|
)
|
Net loss
|
$
|
(91.6
|
)
|
|
$
|
(259.3
|
)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Current assets
|
$
|
1,099.6
|
|
|
$
|
823.4
|
|
Long-term assets
|
22,155.7
|
|
|
24,076.8
|
|
||
Total assets
|
$
|
23,255.3
|
|
|
$
|
24,900.2
|
|
|
|
|
|
||||
Current liabilities
|
$
|
2,812.3
|
|
|
$
|
2,631.7
|
|
Long-term liabilities
|
14,751.5
|
|
|
16,110.4
|
|
||
Owners’ equity
|
5,691.5
|
|
|
6,158.1
|
|
||
Total liabilities and owners’ equity
|
$
|
23,255.3
|
|
|
$
|
24,900.2
|
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Revenue
|
$
|
892.3
|
|
|
$
|
769.8
|
|
|
$
|
649.1
|
|
Loss before income taxes
|
$
|
(46.8
|
)
|
|
$
|
(49.3
|
)
|
|
$
|
(96.6
|
)
|
Net loss
|
$
|
(58.6
|
)
|
|
$
|
(51.6
|
)
|
|
$
|
(91.0
|
)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Current assets
|
$
|
532.6
|
|
|
$
|
409.4
|
|
Long-term assets
|
681.0
|
|
|
748.0
|
|
||
Total assets
|
$
|
1,213.6
|
|
|
$
|
1,157.4
|
|
|
|
|
|
||||
Current liabilities
|
$
|
458.0
|
|
|
$
|
389.1
|
|
Long-term liabilities
|
766.2
|
|
|
718.8
|
|
||
Partners’ equity
|
2.7
|
|
|
46.6
|
|
||
Noncontrolling interests
|
(13.3
|
)
|
|
2.9
|
|
||
Total liabilities and equity
|
$
|
1,213.6
|
|
|
$
|
1,157.4
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
Current (a)
|
|
Long-term (a)
|
|
Total
|
|
Current (a)
|
|
Long-term (a)
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cross-currency and interest rate derivative contracts (b)
|
$
|
372.7
|
|
|
$
|
1,370.1
|
|
|
$
|
1,742.8
|
|
|
$
|
477.0
|
|
|
$
|
1,071.9
|
|
|
$
|
1,548.9
|
|
Equity-related derivative instruments (c)
|
13.9
|
|
|
732.4
|
|
|
746.3
|
|
|
—
|
|
|
560.9
|
|
|
560.9
|
|
||||||
Foreign currency forward and option contracts
|
7.2
|
|
|
—
|
|
|
7.2
|
|
|
17.0
|
|
|
0.1
|
|
|
17.1
|
|
||||||
Other
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|
0.4
|
|
|
0.8
|
|
||||||
Total
|
$
|
394.2
|
|
|
$
|
2,102.5
|
|
|
$
|
2,496.7
|
|
|
$
|
494.4
|
|
|
$
|
1,633.3
|
|
|
$
|
2,127.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cross-currency and interest rate derivative contracts (b)
|
$
|
326.5
|
|
|
$
|
1,042.2
|
|
|
$
|
1,368.7
|
|
|
$
|
210.2
|
|
|
$
|
1,557.7
|
|
|
$
|
1,767.9
|
|
Equity-related derivative
instruments (c)
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
5.4
|
|
|
—
|
|
|
5.4
|
|
||||||
Foreign currency forward and option contracts
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
7.7
|
|
|
0.2
|
|
|
7.9
|
|
||||||
Other
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
328.4
|
|
|
$
|
1,042.3
|
|
|
$
|
1,370.7
|
|
|
$
|
223.3
|
|
|
$
|
1,557.9
|
|
|
$
|
1,781.2
|
|
(a)
|
Our current derivative liabilities, long-term derivative assets and long-term derivative liabilities are included in other current and accrued liabilities, other assets, net, and other long-term liabilities, respectively, in our consolidated balance sheets.
|
(b)
|
We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our subsidiary borrowing groups (as defined and described in note
11
).
The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in a net gains (losses) of (
$71.1 million
),
$168.4 million
and (
$26.5 million
) during
2018
,
2017
and
2016
, respectively. These amounts are included in realized and unrealized gains (losses)
on derivative instruments, net, in our consolidated statements of operations. For further information regarding our fair value measurements, see note
9
.
|
(c)
|
Our equity-related derivative instruments primarily include the fair value of (i) the
ITV Collar
, (ii) the
Lionsgate Forward
, and (iii) at December 31, 2017, the share collar (the
Sumitomo Collar
) with respect to a portion of the shares of
Sumitomo
held by our company. On May 22, 2018, we settled the final tranche of the
Sumitomo Collar
and related borrowings with a portion of the existing
Sumitomo
shares held by our company. The aggregate market value of these shares on the transaction date was
$159.3 million
. The fair values of the
ITV Collar
, the
Sumitomo Collar
and the
Lionsgate Forward
do not include credit risk valuation adjustments as we assume that any losses incurred by our company in the event of nonperformance by the respective counterparty would be, subject to relevant insolvency laws, fully offset against amounts we owe to such counterparty pursuant to the related secured borrowing arrangements.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Cross-currency and interest rate derivative contracts
|
$
|
905.8
|
|
|
$
|
(1,145.6
|
)
|
|
$
|
668.5
|
|
Equity-related derivative instruments:
|
|
|
|
|
|
||||||
ITV Collar
|
176.7
|
|
|
215.0
|
|
|
351.5
|
|
|||
Lionsgate Forward
|
30.1
|
|
|
(11.4
|
)
|
|
10.1
|
|
|||
Sumitomo Collar
|
(11.8
|
)
|
|
(77.4
|
)
|
|
(25.6
|
)
|
|||
Other
|
2.5
|
|
|
(3.9
|
)
|
|
1.6
|
|
|||
Total equity-related derivative instruments
|
197.5
|
|
|
122.3
|
|
|
337.6
|
|
|||
Foreign currency forward and option contracts
|
22.7
|
|
|
(30.2
|
)
|
|
17.0
|
|
|||
Other
|
(0.2
|
)
|
|
0.7
|
|
|
(0.8
|
)
|
|||
Total
|
$
|
1,125.8
|
|
|
$
|
(1,052.8
|
)
|
|
$
|
1,022.3
|
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Operating activities
|
$
|
244.4
|
|
|
$
|
6.8
|
|
|
$
|
4.3
|
|
Investing activities
|
—
|
|
|
(0.5
|
)
|
|
(2.9
|
)
|
|||
Financing activities
|
112.8
|
|
|
(138.1
|
)
|
|
(251.5
|
)
|
|||
Total
|
$
|
357.2
|
|
|
$
|
(131.8
|
)
|
|
$
|
(250.1
|
)
|
(a)
|
Includes certain derivative instruments that do not involve the exchange of notional amounts at the inception and maturity of the instruments. Accordingly, the only cash flows associated with these derivative instruments are coupon-related payments and receipts. At
December 31, 2018
, the total
U.S.
dollar equivalents of the notional amount of these derivative instruments were
$4.7 billion
.
|
(b)
|
Includes certain derivative instruments that are “forward-starting,” such that the initial exchange occurs at a date subsequent to
December 31, 2018
. These instruments are typically entered into in order to extend existing hedges without the need to amend existing contracts.
|
|
|
Borrowing group
pays fixed rate (a) |
|
Borrowing group
receives fixed rate |
||||||||
Borrowing group
|
|
Notional amount
|
|
Weighted average remaining life
|
|
Notional amount
|
|
Weighted average remaining life
|
||||
|
|
in millions
|
|
in years
|
|
in millions
|
|
in years
|
||||
|
|
|
|
|
|
|
|
|
||||
Virgin Media
|
$
|
17,196.5
|
|
|
3.4
|
|
$
|
11,043.5
|
|
|
5.2
|
|
|
|
|
|
|
|
|
|
|
||||
UPC Holding
|
$
|
5,800.3
|
|
|
4.6
|
|
$
|
3,992.6
|
|
|
6.8
|
|
|
|
|
|
|
|
|
|
|
||||
Telenet
|
$
|
3,853.2
|
|
|
5.2
|
|
$
|
1,634.1
|
|
|
4.7
|
(a)
|
Includes forward-starting derivative instruments.
|
Borrowing group
|
|
Notional amount
|
|
Underlying swap currency
|
|
Weighted average option expiration period (a)
|
|
Weighted average strike rate (b)
|
||
|
|
in millions
|
|
|
|
in years
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Virgin Media
|
$
|
6,062.5
|
|
|
£
|
|
0.9
|
|
2.47%
|
|
|
|
$
|
589.5
|
|
|
€
|
|
0.9
|
|
2.08%
|
|
|
|
|
|
|
|
|
|
||
UPC Holding
|
$
|
1,340.6
|
|
|
CHF
|
|
0.1
|
|
1.22%
|
(a)
|
Represents the weighted average period until the date on which we have the option to enter into the interest rate swap contracts.
|
(b)
|
Represents the weighted average interest rate that we would pay if we exercised our option to enter into the interest rate swap contracts.
|
Borrowing group
|
|
Notional amount due from counterparty (a)
|
|
Weighted average remaining life
|
||
|
|
in millions
|
|
in years
|
||
|
|
|
|
|
||
Virgin Media
|
$
|
4,547.1
|
|
|
0.5
|
|
|
|
|
|
|
||
UPC Holding
|
$
|
2,640.0
|
|
|
0.4
|
|
|
|
|
|
|
||
Telenet
|
$
|
3,675.0
|
|
|
0.3
|
(a)
|
Includes forward-starting derivative instruments.
|
|
|
|
Decrease to
borrowing costs at December 31, 2018 (a)
|
|
|
|
|
|
|
Virgin Media
|
(0.59
|
)%
|
||
UPC Holding
|
(0.06
|
)%
|
||
Telenet
|
(0.63
|
)%
|
||
Total decrease to borrowing costs
|
(0.45
|
)%
|
(a)
|
Represents the effect of derivative instruments in effect at
December 31, 2018
and does not include forward-starting derivative instruments or
swaption
s.
|
|
|
|
|
Fair value measurements at December 31, 2018 using:
|
||||||||||||
Description
|
|
December 31,
2018 |
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
||||||||
|
|
in millions
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|||||||||
Cross-currency and interest rate derivative contracts
|
$
|
1,742.8
|
|
|
$
|
—
|
|
|
$
|
1,742.5
|
|
|
$
|
0.3
|
|
|
Equity-related derivative instruments
|
746.3
|
|
|
—
|
|
|
—
|
|
|
746.3
|
|
|||||
Foreign currency forward and option contracts
|
7.2
|
|
|
—
|
|
|
7.2
|
|
|
—
|
|
|||||
Other
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|||||
Total derivative instruments
|
2,496.7
|
|
|
—
|
|
|
1,750.1
|
|
|
746.6
|
|
|||||
Investments
|
1,174.8
|
|
|
755.9
|
|
|
—
|
|
|
418.9
|
|
|||||
Total assets
|
$
|
3,671.5
|
|
|
$
|
755.9
|
|
|
$
|
1,750.1
|
|
|
$
|
1,165.5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|||||||||
Cross-currency and interest rate derivative contracts
|
$
|
1,368.7
|
|
|
$
|
—
|
|
|
$
|
1,354.3
|
|
|
$
|
14.4
|
|
|
Equity-related derivative instruments
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|||||
Foreign currency forward and option contracts
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|||||
Other
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|||||
Total derivative liabilities
|
1,370.7
|
|
|
—
|
|
|
1,354.9
|
|
|
15.8
|
|
|||||
Debt
|
248.6
|
|
|
—
|
|
|
248.6
|
|
|
—
|
|
|||||
Total liabilities
|
$
|
1,619.3
|
|
|
$
|
—
|
|
|
$
|
1,603.5
|
|
|
$
|
15.8
|
|
|
|
|
|
Fair value measurements
at December 31, 2017 using:
|
||||||||||||
Description
|
|
December 31,
2017 |
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
||||||||
|
|
in millions
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|||||||||
Cross-currency and interest rate derivative contracts
|
$
|
1,548.9
|
|
|
$
|
—
|
|
|
$
|
1,548.7
|
|
|
$
|
0.2
|
|
|
Equity-related derivative instruments
|
560.9
|
|
|
—
|
|
|
—
|
|
|
560.9
|
|
|||||
Foreign currency forward and option contracts
|
17.1
|
|
|
—
|
|
|
17.1
|
|
|
—
|
|
|||||
Other
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|||||
Total derivative instruments
|
2,127.7
|
|
|
—
|
|
|
1,566.6
|
|
|
561.1
|
|
|||||
Investments
|
2,315.3
|
|
|
1,908.7
|
|
|
—
|
|
|
406.6
|
|
|||||
Total assets
|
$
|
4,443.0
|
|
|
$
|
1,908.7
|
|
|
$
|
1,566.6
|
|
|
$
|
967.7
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|||||||||
Cross-currency and interest rate derivative contracts
|
$
|
1,767.9
|
|
|
$
|
—
|
|
|
$
|
1,764.5
|
|
|
$
|
3.4
|
|
|
Equity-related derivative instruments
|
5.4
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
|||||
Foreign currency forward and option contracts
|
7.9
|
|
|
—
|
|
|
7.9
|
|
|
—
|
|
|||||
Total derivative liabilities
|
1,781.2
|
|
|
—
|
|
|
1,772.4
|
|
|
8.8
|
|
|||||
Debt
|
926.6
|
|
|
621.7
|
|
|
304.9
|
|
|
—
|
|
|||||
Total liabilities
|
$
|
2,707.8
|
|
|
$
|
621.7
|
|
|
$
|
2,077.3
|
|
|
$
|
8.8
|
|
|
Investments
|
|
Cross-currency and interest rate derivative contracts
|
|
Equity-related
derivative
instruments
|
|
Total
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Balance of net assets (liabilities) at January 1, 2018
|
$
|
406.6
|
|
|
$
|
(3.2
|
)
|
|
$
|
555.5
|
|
|
$
|
958.9
|
|
Gains (losses) included in
loss from continuing operations (a):
|
|
|
|
|
|
|
|
||||||||
Realized and unrealized gains (losses)
on derivative instruments, net
|
—
|
|
|
(11.5
|
)
|
|
197.5
|
|
|
186.0
|
|
||||
Realized and unrealized loss due to changes in fair values of certain investments and debt, net
|
(39.0
|
)
|
|
—
|
|
|
—
|
|
|
(39.0
|
)
|
||||
Impact of ASU 2016-01
|
31.9
|
|
|
—
|
|
|
—
|
|
|
31.9
|
|
||||
Additions
|
55.0
|
|
|
0.2
|
|
|
—
|
|
|
55.2
|
|
||||
Dispositions
|
(17.7
|
)
|
|
—
|
|
|
—
|
|
|
(17.7
|
)
|
||||
Final settlement of Sumitomo Collar (b)
|
—
|
|
|
—
|
|
|
(7.4
|
)
|
|
(7.4
|
)
|
||||
Transfers out of Level 3
|
(2.0
|
)
|
|
—
|
|
|
—
|
|
|
(2.0
|
)
|
||||
Foreign currency translation adjustments, dividends and other, net
|
(15.9
|
)
|
|
0.4
|
|
|
(0.7
|
)
|
|
(16.2
|
)
|
||||
Balance of net assets (liabilities) at December 31, 2018
|
$
|
418.9
|
|
|
$
|
(14.1
|
)
|
|
$
|
744.9
|
|
|
$
|
1,149.7
|
|
(a)
|
Most of these net gains and losses relate to assets and liabilities that we continue to carry on our consolidated balance sheet as of
December 31, 2018
.
|
(b)
|
For additional information regarding the settlement of the final tranche of the
Sumitomo Collar
, see note
8
.
|
|
Estimated useful life at
December 31, 2018
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
|||||
|
|
|
in millions
|
||||||
|
|
|
|
|
|
||||
Distribution systems
|
3 to 30 years
|
|
$
|
17,845.4
|
|
|
$
|
17,465.0
|
|
Customer premises equipment
|
3 to 7 years
|
|
4,191.2
|
|
|
4,341.0
|
|
||
Support equipment, buildings and land
|
2 to 50 years
|
|
4,933.7
|
|
|
4,781.4
|
|
||
Total property and equipment, gross
|
|
26,970.3
|
|
|
26,587.4
|
|
|||
Accumulated depreciation
|
|
(13,091.4
|
)
|
|
(12,438.4
|
)
|
|||
Total property and equipment, net
|
|
$
|
13,878.9
|
|
|
$
|
14,149.0
|
|
|
January 1,
2018
|
|
Acquisitions
and related
adjustments
|
|
Foreign
currency
translation
adjustments
|
|
December 31,
2018 |
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
8,134.1
|
|
|
$
|
2.0
|
|
|
$
|
(465.1
|
)
|
|
$
|
7,671.0
|
|
Belgium
|
2,681.7
|
|
|
24.9
|
|
|
(130.3
|
)
|
|
2,576.3
|
|
||||
Switzerland
|
2,931.3
|
|
|
(0.3
|
)
|
|
(27.1
|
)
|
|
2,903.9
|
|
||||
Central and Eastern Europe
|
607.0
|
|
|
—
|
|
|
(42.4
|
)
|
|
564.6
|
|
||||
Total
|
$
|
14,354.1
|
|
|
$
|
26.6
|
|
|
$
|
(664.9
|
)
|
|
$
|
13,715.8
|
|
|
January 1,
2017
|
|
Acquisitions
and related
adjustments
|
|
Foreign
currency
translation
adjustments
|
|
December 31,
2017 |
||||||||
|
|
|
in millions
|
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
7,412.3
|
|
|
$
|
2.3
|
|
|
$
|
719.5
|
|
|
$
|
8,134.1
|
|
Belgium
|
2,032.7
|
|
|
338.6
|
|
|
310.4
|
|
|
2,681.7
|
|
||||
Switzerland
|
2,805.6
|
|
|
—
|
|
|
125.7
|
|
|
2,931.3
|
|
||||
Central and Eastern Europe
|
507.9
|
|
|
—
|
|
|
99.1
|
|
|
607.0
|
|
||||
Total
|
$
|
12,758.5
|
|
|
$
|
340.9
|
|
|
$
|
1,254.7
|
|
|
$
|
14,354.1
|
|
|
Estimated useful life at December 31, 2018
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
|||||||||||||
|
|
|
in millions
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer relationships
|
2 to 10 years
|
|
$
|
3,673.1
|
|
|
$
|
(2,914.2
|
)
|
|
$
|
758.9
|
|
|
$
|
4,041.0
|
|
|
$
|
(2,745.8
|
)
|
|
$
|
1,295.2
|
|
Other
|
2 to 20 years
|
|
521.3
|
|
|
(249.0
|
)
|
|
272.3
|
|
|
531.9
|
|
|
(218.6
|
)
|
|
313.3
|
|
||||||
Total
|
|
$
|
4,194.4
|
|
|
$
|
(3,163.2
|
)
|
|
$
|
1,031.2
|
|
|
$
|
4,572.9
|
|
|
$
|
(2,964.4
|
)
|
|
$
|
1,608.5
|
|
2019
|
$
|
521.4
|
|
2020
|
167.0
|
|
|
2021
|
82.2
|
|
|
2022
|
34.0
|
|
|
2023
|
28.5
|
|
|
Thereafter
|
198.1
|
|
|
Total
|
$
|
1,031.2
|
|
|
December 31, 2018
|
|
Principal amount
|
|||||||||||||||
Weighted
average
interest
rate (a)
|
|
Unused borrowing capacity (b)
|
|
|||||||||||||||
Borrowing currency
|
|
U.S. $
equivalent
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
VM Senior Secured Notes
|
5.40
|
%
|
|
—
|
|
|
$
|
—
|
|
|
$
|
6,268.3
|
|
|
$
|
6,565.6
|
|
|
VM Credit Facilities (c)
|
4.72
|
%
|
|
(d)
|
|
860.3
|
|
|
4,600.5
|
|
|
4,676.2
|
|
|||||
VM Senior Notes
|
5.54
|
%
|
|
—
|
|
|
—
|
|
|
1,999.9
|
|
|
3,000.1
|
|
||||
Telenet Credit Facility
|
3.76
|
%
|
|
(e)
|
|
509.6
|
|
|
3,145.7
|
|
|
2,177.6
|
|
|||||
Telenet Senior Secured Notes
|
4.69
|
%
|
|
—
|
|
|
—
|
|
|
1,687.1
|
|
|
1,721.3
|
|
||||
Telenet SPE Notes
|
4.88
|
%
|
|
—
|
|
|
—
|
|
|
546.2
|
|
|
937.7
|
|
||||
UPCB SPE Notes (f)
|
4.54
|
%
|
|
—
|
|
|
—
|
|
|
2,445.5
|
|
|
2,582.6
|
|
||||
UPC Holding Bank Facility (f)
|
4.96
|
%
|
|
€
|
990.1
|
|
|
1,133.9
|
|
|
1,645.0
|
|
|
2,576.1
|
|
|||
UPC Holding Senior Notes (f)
|
4.59
|
%
|
|
—
|
|
|
—
|
|
|
1,215.5
|
|
|
1,313.4
|
|
||||
Vendor financing (g)
|
4.18
|
%
|
|
—
|
|
|
—
|
|
|
3,620.3
|
|
|
3,593.1
|
|
||||
ITV Collar Loan
|
0.90
|
%
|
|
—
|
|
|
—
|
|
|
1,379.6
|
|
|
1,463.8
|
|
||||
Derivative-related debt instruments (h)
|
3.37
|
%
|
|
—
|
|
|
—
|
|
|
301.9
|
|
|
361.5
|
|
||||
Sumitomo Share Loan (i)
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
621.7
|
|
||||
Sumitomo Collar Loan
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
169.1
|
|
||||
Other (j)
|
5.27
|
%
|
|
—
|
|
|
—
|
|
|
459.8
|
|
|
418.2
|
|
||||
Total debt before deferred financing costs, discounts and premiums (k)
|
4.56
|
%
|
|
|
|
$
|
2,503.8
|
|
|
$
|
29,315.3
|
|
|
$
|
32,178.0
|
|
|
December 31,
|
|||||||||||||||
|
2018
|
|
2017
|
|||||||||||||
|
in millions
|
|||||||||||||||
|
|
|
|
|||||||||||||
Total debt before deferred financing costs, discounts and premiums
|
$
|
29,315.3
|
|
|
$
|
32,178.0
|
|
|||||||||
Deferred financing costs, discounts and premiums, net
|
(131.4
|
)
|
|
(171.8
|
)
|
|||||||||||
Total carrying amount of debt
|
29,183.9
|
|
|
32,006.2
|
|
|||||||||||
Capital lease obligations (l)
|
621.3
|
|
|
638.3
|
|
|||||||||||
Total debt and capital lease obligations
|
29,805.2
|
|
|
32,644.5
|
|
|||||||||||
Current maturities of debt and capital lease obligations
|
(3,615.2
|
)
|
|
(3,667.5
|
)
|
|||||||||||
Long-term debt and capital lease obligations
|
$
|
26,190.0
|
|
|
$
|
28,977.0
|
|
(a)
|
Represents the weighted average interest rate in effect at
December 31, 2018
for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. Including the effects of derivative instruments, original issue premiums
|
(b)
|
Unused borrowing capacity represents the maximum availability under the applicable facility at
December 31, 2018
without regard to covenant compliance calculations or other conditions precedent to borrowing. At
December 31, 2018
, based on the most restrictive applicable leverage covenants, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, and based on the most restrictive applicable leverage-based restricted payment tests, there were no restrictions on the respective subsidiary's ability to make loans or distributions from this availability to
Liberty Global
or its subsidiaries or other equity holders. Upon completion of the relevant
December 31, 2018
compliance reporting requirements, we expect that the full amount of unused borrowing capacity will continue to be available and that there will be no restrictions with respect to loans or distributions. Our above expectations do not consider any actual or potential changes to our borrowing levels or any amounts loaned or distributed subsequent to
December 31, 2018
.
|
(c)
|
Amounts include
£41.9 million
(
$53.4 million
) and
£43.6 million
(
$55.6 million
) at
December 31, 2018
and
2017
, respectively, of borrowings pursuant to excess cash facilities under the
VM Credit Facilities
. These borrowings are owed to certain non-consolidated special purpose financing entities that have issued notes to finance the purchase of receivables due from
Virgin Media
to certain other third parties for amounts that
Virgin Media
and its subsidiaries have vendor financed. To the extent that the proceeds from these notes exceed the amount of vendor financed receivables available to be purchased, the excess proceeds are used to fund these excess cash facilities.
|
(d)
|
Unused borrowing capacity under the
VM Credit Facilities
relates to multi-currency revolving facilities with an aggregate maximum borrowing capacity equivalent to
£675.0 million
(
$860.3 million
). During 2018, the
VM Revolving Facility
was amended and split into two revolving facilities. As of
December 31, 2018
,
VM Revolving Facility
A was a multi-currency revolving facility maturing on December 31, 2021 with a maximum borrowing capacity equivalent to
£50.0 million
(
$63.7 million
), and
VM Revolving Facility
B was a multi-currency revolving facility maturing on January 15, 2024 with a maximum borrowing capacity equivalent to
£625.0 million
(
$796.6 million
). All other terms from the previously existing
VM Revolving Facility
continue to apply to the new revolving facilities.
|
(e)
|
Unused borrowing capacity under the
Telenet Credit Facility
comprises (i)
€400.0 million
(
$458.1 million
) under Telenet Facility AG, (ii)
€25.0 million
(
$28.6 million
) under the Telenet Overdraft Facility and (iii)
€20.0 million
(
$22.9 million
) under the Telenet Revolving Facility, each of which were undrawn at
December 31, 2018
.
|
(f)
|
Subsequent to December 31, 2018, we entered into an agreement to sell our operations in Switzerland. For information regarding the potential impact on the outstanding debt of the
UPC Holding
borrowing group, see note
21
.
|
(g)
|
Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our property and equipment additions and, to a lesser extent, certain of our operating expenses. These obligations are generally due within
one year
and include
VAT
that was paid on our behalf by the vendor. Repayments of vendor financing obligations are included in repayments and repurchases of debt and capital lease obligations in our consolidated statements of cash flows.
|
(h)
|
Represents amounts associated with certain derivative-related borrowing instruments, including
$248.6 million
and
$304.9 million
at
December 31, 2018
and
2017
, respectively, carried at fair value. These instruments mature at various dates through January 2025. For information regarding fair value hierarchies, see note
9
.
|
(i)
|
In August 2018, we settled the outstanding amount under the
Sumitomo Share Loan
with the remaining shares of
Sumitomo
that were held by our company.
|
(j)
|
Amounts include
$225.9 million
and
$160.9 million
at
December 31, 2018
and
2017
, respectively, of debt collateralized by certain trade receivables of
Virgin Media
.
|
(k)
|
As of
December 31, 2018
and
2017
, our debt had an estimated fair value of
$28.5 billion
and
$32.7 billion
, respectively. The estimated fair values of our debt instruments are generally determined using the average of applicable bid and ask prices
|
(1)
|
At
December 31, 2018
and
2017
,
Telenet
’s capital lease obligations included
€390.6 million
(
$447.3 million
) and
€361.8 million
(
$414.3 million
)
, respectively, associated with
Telenet
’s lease of the broadband communications network of the
four
associations of municipalities in Belgium, which we refer to as the pure intercommunalues or the “
PICs
.” All capital expenditures associated with the
PICs
network are initiated by
Telenet
, but are executed and financed by the
PICs
through additions to this lease that are repaid over a
15
-year term. These amounts do not include
Telenet
’s commitment related to certain operating costs associated with the
PICs
network. For additional information regarding this commitment, see note
18
.
|
•
|
Our credit facilities contain certain consolidated net leverage ratios, as specified in the relevant credit facility, which are required to be complied with (i) on an incurrence basis and/or (ii) when the associated revolving credit facilities have been drawn beyond a specified percentage of the total available revolving credit commitments, on a maintenance basis;
|
•
|
Subject to certain customary and agreed exceptions, our credit facilities contain certain restrictions which, among other things, restrict the ability of the members of the relevant borrowing group to, (i) incur or guarantee certain financial indebtedness, (ii) make certain disposals and acquisitions, (iii) create certain security interests over their assets and (iv) make certain restricted payments to their direct and/or indirect parent companies (and indirectly to
Liberty Global
) through dividends, loans or other distributions;
|
•
|
Our credit facilities require that certain members of the relevant borrowing group guarantee the payment of all sums payable under the relevant credit facility and such group members are required to grant first-ranking security over their shares or, in certain borrowing groups, over substantially all of their assets to secure the payment of all sums payable thereunder;
|
•
|
In addition to certain mandatory prepayment events, our credit facilities provide that the instructing group of lenders under the relevant credit facility, under certain circumstances, may cancel the group’s commitments thereunder and declare
|
•
|
Our credit facilities contain certain customary events of default, the occurrence of which, subject to certain exceptions, materiality qualifications and cure rights, would allow the instructing group of lenders to (i) cancel the total commitments, (ii) declare that all or part of the loans be payable on demand and/or (iii) accelerate all outstanding loans and terminate their commitments thereunder;
|
•
|
Our credit facilities require members of the relevant borrowing group to observe certain affirmative and negative undertakings and covenants, which are subject to certain materiality qualifications and other customary and agreed exceptions; and
|
•
|
In addition to customary default provisions, our credit facilities generally include certain cross-default and cross-acceleration provisions with respect to other indebtedness of members of the relevant borrowing group, subject to agreed minimum thresholds and other customary and agreed exceptions.
|
•
|
Our notes contain certain customary incurrence-based covenants. In addition, our notes provide that any failure to pay principal prior to the expiration of any applicable grace period, or any acceleration with respect to other indebtedness of the issuer or certain subsidiaries over agreed minimum thresholds (as specified under the applicable indenture), is an event of default under the respective notes;
|
•
|
Subject to certain customary and agreed exceptions, our notes contain certain restrictions that, among other things, restrict the ability of the members of the relevant borrowing group to (i) incur or guarantee certain financial indebtedness, (ii) make certain disposals and acquisitions, (iii) create certain security interests over their assets and (iv) make certain restricted payments to its direct and/or indirect parent companies (and indirectly to
Liberty Global
) through dividends, loans or other distributions;
|
•
|
If the relevant issuer or certain of its subsidiaries (as specified in the applicable indenture) sell certain assets, such issuer must, subject to certain customary and agreed exceptions, offer to repurchase the applicable notes at par, or if a change of control (as specified in the applicable indenture) occurs, such issuer must offer to repurchase all of the relevant notes at a redemption price of
101%
;
|
•
|
Our senior secured notes contain certain early redemption provisions including, for certain senior secured notes, the ability to, during each
12
-month period commencing on the issue date for such notes until the applicable call date, redeem up to
10%
of the principal amount of the notes at a redemption price equal to
103%
of the principal amount of the notes to be redeemed plus accrued and unpaid interest; and
|
•
|
Certain of our notes are non-callable. The remainder of our notes are non-callable prior to their respective call date (as specified under the applicable indenture). At any time prior to the applicable call date, we may redeem some or all of the applicable notes by paying a “make-whole” premium, which is the present value of all remaining scheduled interest payments to the applicable call date using the discount rate as of the redemption date plus a premium (as specified in the applicable indenture). After the applicable call date, we may redeem some or all of these notes at various redemption prices plus accrued interest and additional amounts (as specified in the applicable indenture), if any, to the applicable redemption date.
|
|
Virgin Media
|
|
UPC
Holding (a)
|
|
Telenet (b)
|
|
Other
|
|
Total
|
||||||||||
|
in millions
|
||||||||||||||||||
Year ending December 31:
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
$
|
2,454.2
|
|
|
$
|
587.4
|
|
|
$
|
440.9
|
|
|
$
|
55.0
|
|
|
$
|
3,537.5
|
|
2020
|
15.7
|
|
|
24.3
|
|
|
16.9
|
|
|
212.9
|
|
|
269.8
|
|
|||||
2021
|
1,320.7
|
|
|
25.4
|
|
|
12.0
|
|
|
962.1
|
|
|
2,320.2
|
|
|||||
2022
|
314.1
|
|
|
24.1
|
|
|
11.9
|
|
|
323.2
|
|
|
673.3
|
|
|||||
2023
|
75.3
|
|
|
21.3
|
|
|
12.1
|
|
|
—
|
|
|
108.7
|
|
|||||
Thereafter
|
11,629.4
|
|
|
5,306.0
|
|
|
5,470.4
|
|
|
—
|
|
|
22,405.8
|
|
|||||
Total debt maturities
|
15,809.4
|
|
|
5,988.5
|
|
|
5,964.2
|
|
|
1,553.2
|
|
|
29,315.3
|
|
|||||
Deferred financing costs, discounts and premiums, net
|
(38.1
|
)
|
|
(39.3
|
)
|
|
(34.2
|
)
|
|
(19.8
|
)
|
|
(131.4
|
)
|
|||||
Total debt
|
$
|
15,771.3
|
|
|
$
|
5,949.2
|
|
|
$
|
5,930.0
|
|
|
$
|
1,533.4
|
|
|
$
|
29,183.9
|
|
Current portion
|
$
|
2,454.2
|
|
|
$
|
587.4
|
|
|
$
|
440.9
|
|
|
$
|
54.5
|
|
|
$
|
3,537.0
|
|
Noncurrent portion
|
$
|
13,317.1
|
|
|
$
|
5,361.8
|
|
|
$
|
5,489.1
|
|
|
$
|
1,478.9
|
|
|
$
|
25,646.9
|
|
(a)
|
Amounts include the UPCB
SPE Notes
issued by the
UPCB SPEs
. As described above, the
UPCB SPEs
are consolidated by
UPC Holding
and
Liberty Global
.
|
(b)
|
Amounts include the Telenet
SPE Notes
issued by the
Telenet SPE
s. As described above, the
Telenet SPE
s are consolidated by
Telenet
and
Liberty Global
.
|
|
|
Telenet
|
|
Virgin Media
|
|
UPC
Holding |
|
Other
|
|
Total
|
||||||||||
|
in millions
|
|||||||||||||||||||
Year ending December 31:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
|
$
|
66.9
|
|
|
$
|
12.3
|
|
|
$
|
4.9
|
|
|
$
|
17.3
|
|
|
$
|
101.4
|
|
2020
|
|
82.3
|
|
|
9.3
|
|
|
6.1
|
|
|
9.6
|
|
|
107.3
|
|
|||||
2021
|
|
76.4
|
|
|
8.9
|
|
|
6.3
|
|
|
5.1
|
|
|
96.7
|
|
|||||
2022
|
|
76.1
|
|
|
11.2
|
|
|
4.1
|
|
|
3.1
|
|
|
94.5
|
|
|||||
2023
|
|
64.4
|
|
|
6.9
|
|
|
3.9
|
|
|
18.3
|
|
|
93.5
|
|
|||||
Thereafter
|
|
277.6
|
|
|
172.8
|
|
|
13.6
|
|
|
—
|
|
|
464.0
|
|
|||||
Total principal and interest payments
|
|
643.7
|
|
|
221.4
|
|
|
38.9
|
|
|
53.4
|
|
|
957.4
|
|
|||||
Amounts representing interest
|
|
(168.5
|
)
|
|
(152.3
|
)
|
|
(9.0
|
)
|
|
(6.3
|
)
|
|
(336.1
|
)
|
|||||
Present value of net minimum lease payments
|
|
$
|
475.2
|
|
|
$
|
69.1
|
|
|
$
|
29.9
|
|
|
$
|
47.1
|
|
|
$
|
621.3
|
|
Current portion
|
|
$
|
52.6
|
|
|
$
|
7.3
|
|
|
$
|
3.0
|
|
|
$
|
15.3
|
|
|
$
|
78.2
|
|
Noncurrent portion
|
|
$
|
422.6
|
|
|
$
|
61.8
|
|
|
$
|
26.9
|
|
|
$
|
31.8
|
|
|
$
|
543.1
|
|
|
Year ended December 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||
|
in millions
|
||||||||||||
|
|
|
|
|
|
||||||||
Belgium
|
$
|
392.4
|
|
|
$
|
140.0
|
|
|
$
|
13.7
|
|
||
U.K.
|
330.9
|
|
|
(991.3
|
)
|
|
1,165.4
|
|
|||||
The Netherlands
|
(321.1
|
)
|
—
|
|
(26.1
|
)
|
—
|
|
169.6
|
|
|||
Switzerland
|
318.8
|
|
|
111.6
|
|
|
273.9
|
|
|||||
U.S.
|
(51.6
|
)
|
|
(842.5
|
)
|
|
(873.0
|
)
|
|||||
Intercompany activity with discontinued operations
|
(426.4
|
)
|
|
(499.9
|
)
|
|
(480.3
|
)
|
|||||
Other
|
(81.2
|
)
|
|
(2.9
|
)
|
|
(26.0
|
)
|
|||||
Total
|
$
|
161.8
|
|
|
$
|
(2,111.1
|
)
|
|
$
|
243.3
|
|
|
Current
|
|
Deferred
|
|
Total
|
||||||
|
in millions
|
||||||||||
Year ended December 31, 2018:
|
|
|
|
|
|
||||||
U.S. (a)
|
$
|
(957.5
|
)
|
|
$
|
7.6
|
|
|
$
|
(949.9
|
)
|
The Netherlands
|
14.2
|
|
|
(519.4
|
)
|
|
(505.2
|
)
|
|||
Belgium
|
(153.9
|
)
|
|
41.6
|
|
|
(112.3
|
)
|
|||
U.K.
|
(7.2
|
)
|
|
32.2
|
|
|
25.0
|
|
|||
Switzerland
|
(16.6
|
)
|
|
6.2
|
|
|
(10.4
|
)
|
|||
Other
|
(14.2
|
)
|
|
(6.3
|
)
|
|
(20.5
|
)
|
|||
Total
|
$
|
(1,135.2
|
)
|
|
$
|
(438.1
|
)
|
|
$
|
(1,573.3
|
)
|
|
|
|
|
|
|
||||||
Year ended December 31, 2017:
|
|
|
|
|
|
||||||
The Netherlands
|
$
|
(16.2
|
)
|
|
$
|
(118.2
|
)
|
|
$
|
(134.4
|
)
|
U.K
|
(3.3
|
)
|
|
(64.7
|
)
|
|
(68.0
|
)
|
|||
Belgium
|
(203.6
|
)
|
|
145.4
|
|
|
(58.2
|
)
|
|||
U.S. (a)
|
47.2
|
|
|
(32.8
|
)
|
|
14.4
|
|
|||
Switzerland
|
(2.0
|
)
|
|
15.6
|
|
|
13.6
|
|
|||
Other
|
(14.4
|
)
|
|
8.1
|
|
|
(6.3
|
)
|
|||
Total
|
$
|
(192.3
|
)
|
|
$
|
(46.6
|
)
|
|
$
|
(238.9
|
)
|
|
|
|
|
|
|
||||||
Year ended December 31, 2016:
|
|
|
|
|
|
||||||
The Netherlands
|
$
|
(0.3
|
)
|
|
$
|
1,259.6
|
|
|
$
|
1,259.3
|
|
U.S. (a)
|
146.8
|
|
|
90.2
|
|
|
237.0
|
|
|||
Belgium
|
(105.0
|
)
|
|
57.0
|
|
|
(48.0
|
)
|
|||
Switzerland
|
(48.4
|
)
|
|
5.3
|
|
|
(43.1
|
)
|
|||
U.K
|
(12.3
|
)
|
|
1.2
|
|
|
(11.1
|
)
|
|||
Other
|
(2.2
|
)
|
|
15.1
|
|
|
12.9
|
|
|||
Total
|
$
|
(21.4
|
)
|
|
$
|
1,428.4
|
|
|
$
|
1,407.0
|
|
(a)
|
Includes federal and state income taxes. Our
U.S.
state income taxes were not material during any of the years presented.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Computed “expected” tax benefit (expense) (a)
|
$
|
(30.7
|
)
|
|
$
|
406.4
|
|
|
$
|
(48.7
|
)
|
Mandatory Repatriation Tax (b)
|
(1,137.2
|
)
|
|
—
|
|
|
—
|
|
|||
Basis and other differences in the treatment of items associated with investments in subsidiaries and affiliates (c)
|
(360.1
|
)
|
|
(192.6
|
)
|
|
(1.3
|
)
|
|||
Non-deductible or non-taxable interest and other expenses
|
(153.8
|
)
|
|
(42.8
|
)
|
|
28.0
|
|
|||
Non-deductible or non-taxable foreign currency exchange results
|
132.5
|
|
|
(233.8
|
)
|
|
192.9
|
|
|||
Recognition of previously unrecognized tax benefits
|
49.6
|
|
|
4.9
|
|
|
210.9
|
|
|||
Change in valuation allowances
|
(34.9
|
)
|
|
(341.6
|
)
|
|
778.1
|
|
|||
Enacted tax law and rate changes (d)
|
(13.5
|
)
|
|
7.4
|
|
|
(132.2
|
)
|
|||
International rate differences (e)
|
(3.5
|
)
|
|
126.9
|
|
|
138.8
|
|
|||
Tax benefit associated with technologies innovation
|
—
|
|
|
12.1
|
|
|
72.6
|
|
|||
Tax effect of intercompany financing
|
—
|
|
|
2.4
|
|
|
161.6
|
|
|||
Other, net
|
(21.7
|
)
|
|
11.8
|
|
|
6.3
|
|
|||
Total income tax benefit (expense)
|
$
|
(1,573.3
|
)
|
|
$
|
(238.9
|
)
|
|
$
|
1,407.0
|
|
(a)
|
The statutory or “expected” tax rates are the
U.K.
rates of
19%
for
2018
,
19.25%
for
2017
and
20.00%
for
2016
. The 2017 statutory rate represents the blended rate that was in effect for the year ended
December 31, 2017
based on the
20.0%
statutory rate that was in effect for the
first quarter of 2017
and the
19.0%
statutory rate that was in effect for the remainder of 2017.
|
(b)
|
As further discussed below, the liability we have recorded for the Mandatory Repatriation Tax (as defined and described below) is significantly lower than the amount included in our income tax expense due in part to the expected use of carryforward attributes in the U.S., all of which were subject to valuation allowances prior to the initial recognition of the Mandatory Repatriation Tax during the first quarter of 2018.
|
(c)
|
These amounts reflect the net impact of differences in the treatment of income and loss items between financial reporting and tax accounting related to investments in subsidiaries and affiliates including the effects of foreign earnings.
|
(d)
|
On December 18, 2018, reductions in the corporate income tax rate in the Netherlands were enacted. The rate will be reduced from the current rate of
25.0%
to
22.5%
in 2020 and
20.5%
in 2021. Substantially all of the impacts of these rate changes in the Netherlands on our deferred tax balances were recorded during the fourth quarter of 2018. In 2017, a Belgian income tax rate reduction was signed into law. The Belgian statutory tax rate decreased from
33.9%
to
29.58%
beginning in 2018, and in 2020, this rate will further decrease to
25.0%
. Also in 2017, the
U.S.
corporate income tax rate was reduced from
35.0%
to
21.0%
effective beginning in 2018. Substantially all of the impacts of the tax rate changes in Belgium and the
U.S.
on our deferred tax balances were recorded during the fourth quarter of 2017. During the third quarter of 2016, the
U.K.
enacted legislation that will reduce the corporate income tax rate in April 2020 to
17.0%
. Substantially all of the impact of this rate change on our deferred tax balances was recorded during the third quarter of 2016.
|
(e)
|
Amounts reflect adjustments (either a benefit or expense) to the “expected” tax benefit (expense) for statutory rates in jurisdictions in which we operate outside of the
U.K.
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Deferred tax assets
|
$
|
2,488.2
|
|
|
$
|
3,133.1
|
|
Deferred tax liabilities (a)
|
(232.9
|
)
|
|
(225.5
|
)
|
||
Net deferred tax asset
|
$
|
2,255.3
|
|
|
$
|
2,907.6
|
|
(a)
|
Our deferred tax liabilities are included in other long-term liabilities in our consolidated balance sheets.
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
Deferred tax assets:
|
|
|
|
||||
Net operating loss and other carryforwards
|
$
|
4,289.8
|
|
|
$
|
5,074.2
|
|
Property and equipment, net
|
1,923.4
|
|
|
2,064.2
|
|
||
Debt
|
322.9
|
|
|
544.1
|
|
||
Investments
|
156.2
|
|
|
97.0
|
|
||
Share-based compensation
|
79.5
|
|
|
71.7
|
|
||
Derivative instruments
|
72.5
|
|
|
155.8
|
|
||
Intangible assets
|
14.8
|
|
|
44.7
|
|
||
Other future deductible amounts
|
161.3
|
|
|
87.2
|
|
||
Deferred tax assets
|
7,020.4
|
|
|
8,138.9
|
|
||
Valuation allowance
|
(4,094.7
|
)
|
|
(4,244.7
|
)
|
||
Deferred tax assets, net of valuation allowance
|
2,925.7
|
|
|
3,894.2
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Intangible assets
|
(193.8
|
)
|
|
(298.3
|
)
|
||
Deferred revenue
|
(178.9
|
)
|
|
(229.8
|
)
|
||
Property and equipment, net
|
(167.4
|
)
|
|
(212.4
|
)
|
||
Investments (including consolidated partnerships)
|
(0.8
|
)
|
|
(130.3
|
)
|
||
Other future taxable amounts
|
(129.5
|
)
|
|
(115.8
|
)
|
||
Deferred tax liabilities
|
(670.4
|
)
|
|
(986.6
|
)
|
||
Net deferred tax asset
|
$
|
2,255.3
|
|
|
$
|
2,907.6
|
|
Country
|
|
Tax loss
carryforward
|
|
Related
tax asset
|
|
Expiration
date
|
||||
|
in millions
|
|
|
|||||||
U.K.:
|
|
|
|
|
|
|||||
Amount attributable to capital losses
|
$
|
15,426.3
|
|
|
$
|
2,622.5
|
|
|
Indefinite
|
|
Amount attributable to net operating losses
|
1,025.6
|
|
|
174.3
|
|
|
Indefinite
|
|||
The Netherlands
|
3,923.1
|
|
|
842.5
|
|
|
2019-2027
|
|||
Belgium
|
1,288.9
|
|
|
324.1
|
|
|
Indefinite
|
|||
Ireland
|
708.5
|
|
|
88.8
|
|
|
Indefinite
|
|||
France
|
544.5
|
|
|
157.5
|
|
|
Indefinite
|
|||
U.S.
|
382.3
|
|
|
16.8
|
|
|
Various
|
|||
Other
|
245.6
|
|
|
63.3
|
|
|
Various
|
|||
Total
|
$
|
23,544.8
|
|
|
$
|
4,289.8
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Balance at January 1
|
$
|
350.4
|
|
|
$
|
217.0
|
|
|
$
|
486.8
|
|
Additions for tax positions of prior years
|
457.4
|
|
|
138.8
|
|
|
2.0
|
|
|||
Additions based on tax positions related to the current year
|
180.0
|
|
|
4.5
|
|
|
5.6
|
|
|||
Reductions for tax positions of prior years
|
(117.9
|
)
|
|
(20.4
|
)
|
|
(183.5
|
)
|
|||
Foreign currency translation
|
(8.5
|
)
|
|
14.1
|
|
|
(2.1
|
)
|
|||
Lapse of statute of limitations
|
(3.6
|
)
|
|
—
|
|
|
(78.3
|
)
|
|||
Settlements with tax authorities
|
—
|
|
|
(3.6
|
)
|
|
(13.5
|
)
|
|||
Balance at December 31
|
$
|
857.8
|
|
|
$
|
350.4
|
|
|
$
|
217.0
|
|
|
Class A (a)
|
|
Class C (a)
|
||
|
|
|
|
||
Options
|
580,254
|
|
|
2,667,506
|
|
SARs
|
15,308,562
|
|
|
34,401,980
|
|
PSUs and RSUs
|
3,487,018
|
|
|
6,976,788
|
|
(a)
|
Includes share-based compensation awards held by former employees of
Liberty Global
that became employees of
Liberty Latin America
as a result of the
Split-off Transaction
. For additional information, see note
14
.
|
|
Liberty Global Shares
|
|
LiLAC Shares (a)
|
||||||||||||||||||||||||||||
|
Class A
|
|
Class B
|
|
Class C
|
|
Total
|
|
Class A
|
|
Class B
|
|
Class C
|
|
Total
|
||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at January 1, 2016
|
$
|
2.5
|
|
|
$
|
0.1
|
|
|
$
|
5.9
|
|
|
$
|
8.5
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
0.4
|
|
Impact of the C&W Acquisition
|
0.3
|
|
|
—
|
|
|
0.8
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||||||
Repurchase and cancellation of Liberty Global Shares
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Impact of the LiLAC Distribution
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.8
|
|
|
1.2
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Balance at December 31, 2016
|
2.5
|
|
|
0.1
|
|
|
6.3
|
|
|
8.9
|
|
|
0.5
|
|
|
—
|
|
|
1.2
|
|
|
1.7
|
|
||||||||
Impact of the Split-off Transaction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
(1.2
|
)
|
|
(1.7
|
)
|
||||||||
Repurchase and cancellation of Liberty Global Shares
|
(0.3
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Balance at December 31, 2017
|
$
|
2.2
|
|
|
$
|
0.1
|
|
|
$
|
5.8
|
|
|
$
|
8.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
In connection with the
Split-off Transaction
, the
LiLAC Shares
were redesignated as deferred shares (with virtually no economic rights), transferred to a third party and cancelled. For additional information regarding the
Split-off Transaction
, see note
6
.
|
|
Class A ordinary shares
|
|
Class C ordinary shares
|
|
|
||||||||||||
|
Shares
repurchased
|
|
Average price
paid per share (a)
|
|
Shares
repurchased
|
|
Average price
paid per share (a)
|
|
Total cost (a)
|
||||||||
|
|
|
|
|
|
|
|
|
in millions
|
||||||||
Liberty Global Shares:
|
|
|
|
|
|
|
|
|
|
||||||||
2018
|
15,649,900
|
|
|
$
|
29.67
|
|
|
54,211,059
|
|
|
$
|
28.51
|
|
|
$
|
2,010.0
|
|
2017
|
34,881,510
|
|
|
$
|
33.73
|
|
|
52,523,651
|
|
|
$
|
32.71
|
|
|
$
|
2,894.7
|
|
2016
|
32,387,722
|
|
|
$
|
32.26
|
|
|
31,557,089
|
|
|
$
|
32.43
|
|
|
$
|
2,068.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
LiLAC Shares:
|
|
|
|
|
|
|
|
|
|
||||||||
2017
|
2,062,233
|
|
|
$
|
22.84
|
|
|
285,572
|
|
|
$
|
22.25
|
|
|
$
|
53.5
|
|
2016
|
720,800
|
|
|
$
|
20.65
|
|
|
313,647
|
|
|
$
|
21.19
|
|
|
$
|
21.5
|
|
(a)
|
Includes direct acquisition costs, where applicable.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
Liberty Global:
|
|
|
|
|
|
||||||
Performance-based incentive awards (a)
|
$
|
50.8
|
|
|
$
|
23.9
|
|
|
$
|
150.6
|
|
Non-performance based share-based incentive awards
|
90.1
|
|
|
93.8
|
|
|
96.4
|
|
|||
Other (b)
|
43.4
|
|
|
13.7
|
|
|
—
|
|
|||
Total Liberty Global
|
184.3
|
|
|
131.4
|
|
|
247.0
|
|
|||
Telenet share-based incentive awards (c)
|
19.6
|
|
|
20.7
|
|
|
12.2
|
|
|||
Other
|
2.1
|
|
|
10.1
|
|
|
8.9
|
|
|||
Total
|
$
|
206.0
|
|
|
$
|
162.2
|
|
|
$
|
268.1
|
|
Included in:
|
|
|
|
|
|
||||||
Other operating expenses
|
$
|
4.4
|
|
|
$
|
4.7
|
|
|
$
|
3.4
|
|
SG&A expenses
|
201.6
|
|
|
157.5
|
|
|
264.7
|
|
|||
Total
|
$
|
206.0
|
|
|
$
|
162.2
|
|
|
$
|
268.1
|
|
(a)
|
Includes share-based compensation expense related to (i)
PSU
s, (ii) in 2016, a challenge performance award plan for certain executive officers and key employees (the
Challenge Performance Awards
) and (iii) through March 2017, the
PGUs
held by our Chief Executive Officer. The
Challenge Performance Awards
included
PSAR
s and
PSU
s.
|
(b)
|
Represents annual incentive compensation and defined contribution plan liabilities that have been or are expected to be settled with
Liberty Global
ordinary shares. In the case of the annual incentive compensation, shares will be issued to senior management and key employees pursuant to a shareholding incentive program that was implemented in the fourth quarter of 2017. The shareholding incentive program allows these employees to elect to receive up to
100%
of their annual incentive compensation in ordinary shares of
Liberty Global
in lieu of cash.
|
(c)
|
Represents the share-based compensation expense associated with Telenet’s share-based incentive awards, which, at
December 31, 2018
, included performance- and non-performance-based stock option awards with respect to
4,494,002
Telenet shares. These stock option awards had a weighted average exercise price of
€42.50
(
$48.67
).
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Assumptions used to estimate fair value of options, SARs and PSARs granted:
|
|
|
|
|
|
||||||
Risk-free interest rate
|
2.68 - 2.92%
|
|
1.66 - 2.16%
|
|
0.88 - 1.49%
|
||||||
Expected life
|
3.0 - 4.2 years
|
|
3.0 - 6.4 years
|
|
3.1 - 5.5 years
|
||||||
Expected volatility
|
30.2 - 33.6%
|
|
25.9 - 37.9%
|
|
27.4 - 42.9%
|
||||||
Expected dividend yield
|
none
|
|
none
|
|
none
|
||||||
Weighted average grant-date fair value per share of awards granted:
|
|
|
|
|
|
||||||
Options
|
$
|
8.99
|
|
|
$
|
9.40
|
|
|
$
|
10.40
|
|
SARs
|
$
|
7.92
|
|
|
$
|
8.60
|
|
|
$
|
8.60
|
|
RSUs
|
$
|
28.72
|
|
|
$
|
31.24
|
|
|
$
|
36.67
|
|
PSUs
|
$
|
23.60
|
|
|
$
|
26.59
|
|
|
$
|
33.97
|
|
Total intrinsic value of awards exercised (in millions):
|
|
|
|
|
|
||||||
Options
|
$
|
3.8
|
|
|
$
|
13.4
|
|
|
$
|
16.9
|
|
SARs and PSARs
|
$
|
22.5
|
|
|
$
|
74.8
|
|
|
$
|
42.9
|
|
Cash received from exercise of options (in millions)
|
$
|
5.7
|
|
|
$
|
11.7
|
|
|
$
|
17.4
|
|
Income tax benefit related to share-based compensation of our continuing operations (in millions)
|
$
|
18.6
|
|
|
$
|
9.8
|
|
|
$
|
51.1
|
|
Options — Class A ordinary shares |
|
Number of awards
|
|
Weighted
average exercise price |
|
Weighted
average remaining contractual term |
|
Aggregate
intrinsic value |
|||||
|
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2018
|
|
580,481
|
|
|
$
|
25.54
|
|
|
|
|
|
||
Granted
|
|
71,469
|
|
|
$
|
30.14
|
|
|
|
|
|
||
Forfeited
|
|
(1,713
|
)
|
|
$
|
22.43
|
|
|
|
|
|
||
Exercised
|
|
(69,983
|
)
|
|
$
|
13.97
|
|
|
|
|
|
||
Outstanding at December 31, 2018
|
|
580,254
|
|
|
$
|
27.51
|
|
|
3.7
|
|
$
|
1.4
|
|
Exercisable at December 31, 2018
|
|
417,608
|
|
|
$
|
26.26
|
|
|
2.9
|
|
$
|
1.4
|
|
Options — Class C ordinary shares
|
|
Number of awards
|
|
Weighted
average exercise price |
|
Weighted
average remaining contractual term |
|
Aggregate
intrinsic value |
|||||
|
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2018
|
|
2,725,566
|
|
|
$
|
25.58
|
|
|
|
|
|
||
Granted
|
|
770,691
|
|
|
$
|
24.82
|
|
|
|
|
|
||
Forfeited
|
|
(591,662
|
)
|
|
$
|
30.07
|
|
|
|
|
|
||
Exercised
|
|
(237,089
|
)
|
|
$
|
17.49
|
|
|
|
|
|
||
Outstanding at December 31, 2018
|
|
2,667,506
|
|
|
$
|
25.09
|
|
|
2.9
|
|
$
|
3.9
|
|
Exercisable at December 31, 2018
|
|
2,161,408
|
|
|
$
|
24.16
|
|
|
2.3
|
|
$
|
3.9
|
|
SARs — Class A ordinary shares
|
|
Number of awards
|
|
Weighted
average base price |
|
Weighted
average remaining contractual term |
|
Aggregate
intrinsic value |
|||||
|
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2018
|
|
13,524,075
|
|
|
$
|
32.72
|
|
|
|
|
|
||
Granted
|
|
3,286,731
|
|
|
$
|
29.81
|
|
|
|
|
|
||
Forfeited
|
|
(898,390
|
)
|
|
$
|
34.77
|
|
|
|
|
|
||
Exercised
|
|
(603,854
|
)
|
|
$
|
21.75
|
|
|
|
|
|
||
Outstanding at December 31, 2018
|
|
15,308,562
|
|
|
$
|
32.41
|
|
|
3.7
|
|
$
|
0.7
|
|
Exercisable at December 31, 2018
|
|
9,837,206
|
|
|
$
|
32.38
|
|
|
2.7
|
|
$
|
0.7
|
|
SARs — Class C ordinary shares
|
|
Number of awards
|
|
Weighted
average base price |
|
Weighted
average remaining contractual term |
|
Aggregate
intrinsic value |
|||||
|
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2018
|
|
31,305,136
|
|
|
$
|
30.60
|
|
|
|
|
|
||
Granted
|
|
6,573,462
|
|
|
$
|
28.86
|
|
|
|
|
|
||
Forfeited
|
|
(1,797,629
|
)
|
|
$
|
33.54
|
|
|
|
|
|
||
Exercised
|
|
(1,678,989
|
)
|
|
$
|
20.35
|
|
|
|
|
|
||
Outstanding at December 31, 2018
|
|
34,401,980
|
|
|
$
|
30.61
|
|
|
3.5
|
|
$
|
2.2
|
|
Exercisable at December 31, 2018
|
|
23,452,476
|
|
|
$
|
30.21
|
|
|
2.4
|
|
$
|
2.2
|
|
RSUs — Class A ordinary shares
|
|
Number of awards
|
|
Weighted
average grant-date fair value per share |
|
Weighted
average remaining contractual term |
|||
|
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2018
|
|
511,061
|
|
|
$
|
35.81
|
|
|
|
Granted
|
|
370,355
|
|
|
$
|
29.36
|
|
|
|
Forfeited
|
|
(59,319
|
)
|
|
$
|
35.04
|
|
|
|
Released from restrictions
|
|
(239,723
|
)
|
|
$
|
35.66
|
|
|
|
Outstanding at December 31, 2018
|
|
582,374
|
|
|
$
|
31.85
|
|
|
2.4
|
RSUs — Class C ordinary shares
|
|
Number of awards
|
|
Weighted
average grant-date fair value per share |
|
Weighted
average remaining contractual term |
|||
|
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2018
|
|
1,007,313
|
|
|
$
|
34.60
|
|
|
|
Granted
|
|
740,710
|
|
|
$
|
28.40
|
|
|
|
Forfeited
|
|
(118,764
|
)
|
|
$
|
28.17
|
|
|
|
Released from restrictions
|
|
(466,908
|
)
|
|
$
|
35.33
|
|
|
|
Outstanding at December 31, 2018
|
|
1,162,351
|
|
|
$
|
31.02
|
|
|
2.4
|
PSUs — Class A ordinary shares
|
|
Number of awards
|
|
Weighted
average grant-date fair value per share |
|
Weighted
average remaining contractual term |
|||
|
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2018
|
|
1,934,795
|
|
|
$
|
31.00
|
|
|
|
Granted
|
|
1,177,392
|
|
|
$
|
24.01
|
|
|
|
Forfeited
|
|
(206,110
|
)
|
|
$
|
30.20
|
|
|
|
Released from restrictions
|
|
(1,433
|
)
|
|
$
|
37.45
|
|
|
|
Outstanding at December 31, 2018
|
|
2,904,644
|
|
|
$
|
28.22
|
|
|
1.2
|
PSUs — Class C ordinary shares
|
|
Number of awards
|
|
Weighted
average grant-date fair value per share |
|
Weighted
average remaining contractual term |
|||
|
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2018
|
|
3,875,732
|
|
|
$
|
30.01
|
|
|
|
Granted
|
|
2,354,784
|
|
|
$
|
23.39
|
|
|
|
Forfeited
|
|
(413,213
|
)
|
|
$
|
29.21
|
|
|
|
Released from restrictions
|
|
(2,866
|
)
|
|
$
|
36.32
|
|
|
|
Outstanding at December 31, 2018
|
|
5,814,437
|
|
|
$
|
27.39
|
|
|
1.2
|
|
|
Number of awards
|
|
Weighted Average exercise or base price
|
|
Weighted Average remaining contractual term
|
|
Aggregate intrinsic value
|
|||||
Options and SARs:
|
|
|
|
|
|
|
|
|
|||||
Class A
|
|
|
|
|
|
|
|
|
|||||
Outstanding
|
|
1,198,985
|
|
|
$
|
32.74
|
|
|
2.9
|
|
$
|
0.1
|
|
Exercisable
|
|
1,017,362
|
|
|
$
|
32.26
|
|
|
2.6
|
|
$
|
0.1
|
|
Class C
|
|
|
|
|
|
|
|
|
|||||
Outstanding
|
|
2,819,203
|
|
|
$
|
30.54
|
|
|
2.7
|
|
$
|
0.3
|
|
Exercisable
|
|
2,455,257
|
|
|
$
|
29.98
|
|
|
2.4
|
|
$
|
0.3
|
|
|
|
Number of awards
|
|
Weighted Average grant date fair value per share
|
|
Weighted Average remaining contractual term
|
|||
Outstanding RSUs and PSUs:
|
|
|
|
|
|
|
|||
Class A
|
|
|
|
|
|
|
|||
RSUs
|
|
9,426
|
|
|
$
|
36.73
|
|
|
1.4
|
PSUs
|
|
172,429
|
|
|
$
|
30.29
|
|
|
0.8
|
Class C
|
|
|
|
|
|
|
|||
RSUs
|
|
18,882
|
|
|
$
|
36.44
|
|
|
1.4
|
PSUs
|
|
345,210
|
|
|
$
|
29.32
|
|
|
0.8
|
|
Employee
severance
and
termination
|
|
Office
closures
|
|
Contract termination
|
|
Total
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Restructuring liability as of January 1, 2018
|
$
|
11.3
|
|
|
$
|
9.5
|
|
|
$
|
16.5
|
|
|
$
|
37.3
|
|
Restructuring charges
|
42.2
|
|
|
5.5
|
|
|
48.7
|
|
|
96.4
|
|
||||
Cash paid
|
(35.5
|
)
|
|
(6.0
|
)
|
|
(44.7
|
)
|
|
(86.2
|
)
|
||||
Foreign currency translation adjustments and other
|
(3.3
|
)
|
|
(0.5
|
)
|
|
(2.6
|
)
|
|
(6.4
|
)
|
||||
Restructuring liability as of December 31, 2018
|
$
|
14.7
|
|
|
$
|
8.5
|
|
|
$
|
17.9
|
|
|
$
|
41.1
|
|
|
|
|
|
|
|
|
|
||||||||
Current portion
|
$
|
13.3
|
|
|
$
|
4.5
|
|
|
$
|
8.4
|
|
|
$
|
26.2
|
|
Noncurrent portion
|
1.4
|
|
|
4.0
|
|
|
9.5
|
|
|
14.9
|
|
||||
Total
|
$
|
14.7
|
|
|
$
|
8.5
|
|
|
$
|
17.9
|
|
|
$
|
41.1
|
|
|
Employee
severance
and
termination
|
|
Office
closures
|
|
Contract termination
|
|
Total
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Restructuring liability as of January 1, 2017
|
$
|
23.0
|
|
|
$
|
7.1
|
|
|
$
|
31.7
|
|
|
$
|
61.8
|
|
Restructuring charges
|
35.2
|
|
|
8.3
|
|
|
4.9
|
|
|
48.4
|
|
||||
Cash paid
|
(50.0
|
)
|
|
(6.8
|
)
|
|
(22.2
|
)
|
|
(79.0
|
)
|
||||
Foreign currency translation adjustments and other
|
3.1
|
|
|
0.9
|
|
|
2.1
|
|
|
6.1
|
|
||||
Restructuring liability as of December 31, 2017
|
$
|
11.3
|
|
|
$
|
9.5
|
|
|
$
|
16.5
|
|
|
$
|
37.3
|
|
|
|
|
|
|
|
|
|
||||||||
Current portion
|
$
|
9.9
|
|
|
$
|
4.4
|
|
|
$
|
4.6
|
|
|
$
|
18.9
|
|
Noncurrent portion
|
1.4
|
|
|
5.1
|
|
|
11.9
|
|
|
18.4
|
|
||||
Total
|
$
|
11.3
|
|
|
$
|
9.5
|
|
|
$
|
16.5
|
|
|
$
|
37.3
|
|
|
Employee
severance
and
termination
|
|
Office
closures
|
|
Contract termination
|
|
Total
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Restructuring liability as of January 1, 2016
|
$
|
59.2
|
|
|
$
|
7.3
|
|
|
$
|
42.0
|
|
|
$
|
108.5
|
|
Restructuring charges
|
62.8
|
|
|
3.2
|
|
|
24.2
|
|
|
90.2
|
|
||||
Cash paid
|
(69.9
|
)
|
|
(2.6
|
)
|
|
(34.7
|
)
|
|
(107.2
|
)
|
||||
BASE liabilities at acquisition date
|
—
|
|
|
—
|
|
|
1.3
|
|
|
1.3
|
|
||||
Disposal (a)
|
(28.1
|
)
|
|
(0.5
|
)
|
|
—
|
|
|
(28.6
|
)
|
||||
Foreign currency translation adjustments
|
(1.0
|
)
|
|
(0.3
|
)
|
|
(1.1
|
)
|
|
(2.4
|
)
|
||||
Restructuring liability as of December 31, 2016
|
$
|
23.0
|
|
|
$
|
7.1
|
|
|
$
|
31.7
|
|
|
$
|
61.8
|
|
|
|
|
|
|
|
|
|
||||||||
Current portion
|
$
|
21.6
|
|
|
$
|
2.0
|
|
|
$
|
19.7
|
|
|
$
|
43.3
|
|
Noncurrent portion
|
1.4
|
|
|
5.1
|
|
|
12.0
|
|
|
18.5
|
|
||||
Total
|
$
|
23.0
|
|
|
$
|
7.1
|
|
|
$
|
31.7
|
|
|
$
|
61.8
|
|
(a)
|
Represents restructuring liabilities associated with
VodafoneZiggo Holding
.
|
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Fair value of plan assets (a)
|
$
|
1,305.0
|
|
|
$
|
1,412.2
|
|
|
$
|
1,198.7
|
|
Projected benefit obligation
|
$
|
1,217.5
|
|
|
$
|
1,335.4
|
|
|
$
|
1,205.1
|
|
Net asset (liability)
|
$
|
87.5
|
|
|
$
|
76.8
|
|
|
$
|
(6.4
|
)
|
(a)
|
The fair value of plan assets at
December 31, 2018
includes
$918.3 million
,
$137.6 million
and
$249.1 million
of assets that are valued based on Level 1, Level 2 and Level 3 inputs, respectively, of the fair value hierarchy (as further described in note
9
). Our plan assets comprise investments in debt securities, equity securities, hedge funds, insurance contracts and certain other assets.
|
|
Liberty Global shareholders
|
|
|
|
|
||||||||||||||
|
Foreign
currency
translation
adjustments
|
|
Pension-
related adjustments and other
|
|
Accumulated
other
comprehensive
earnings (loss)
|
|
Noncontrolling
interests
|
|
Total
accumulated
other
comprehensive
earnings (loss)
|
||||||||||
|
in millions
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2016
|
$
|
979.2
|
|
|
$
|
(83.3
|
)
|
|
$
|
895.9
|
|
|
$
|
(2.8
|
)
|
|
$
|
893.1
|
|
Other comprehensive loss
|
(1,251.8
|
)
|
|
(16.5
|
)
|
|
(1,268.3
|
)
|
|
(3.1
|
)
|
|
(1,271.4
|
)
|
|||||
Balance at December 31, 2016
|
(272.6
|
)
|
|
(99.8
|
)
|
|
(372.4
|
)
|
|
(5.9
|
)
|
|
(378.3
|
)
|
|||||
Other comprehensive earnings
|
1,942.8
|
|
|
0.3
|
|
|
1,943.1
|
|
|
1.7
|
|
|
1,944.8
|
|
|||||
Impact of the Split-off Transaction
|
56.4
|
|
|
28.9
|
|
|
85.3
|
|
|
—
|
|
|
85.3
|
|
|||||
Balance at December 31, 2017
|
1,726.6
|
|
|
(70.6
|
)
|
|
1,656.0
|
|
|
(4.2
|
)
|
|
1,651.8
|
|
|||||
Other comprehensive loss
|
(1,007.3
|
)
|
|
(16.9
|
)
|
|
(1,024.2
|
)
|
|
0.2
|
|
|
(1,024.0
|
)
|
|||||
Balance at December 31, 2018
|
$
|
719.3
|
|
|
$
|
(87.5
|
)
|
|
$
|
631.8
|
|
|
$
|
(4.0
|
)
|
|
$
|
627.8
|
|
|
|
Pre-tax
amount
|
|
Tax benefit (expense)
|
|
Net-of-tax
amount
|
||||||
|
|
in millions
|
||||||||||
Year ended December 31, 2018:
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
$
|
(897.9
|
)
|
|
$
|
—
|
|
|
$
|
(897.9
|
)
|
Pension-related adjustments and other
|
|
(24.4
|
)
|
|
4.4
|
|
|
(20.0
|
)
|
|||
Other comprehensive loss from continuing operations
|
|
(922.3
|
)
|
|
4.4
|
|
|
(917.9
|
)
|
|||
Other comprehensive loss from discontinued operations (a)
|
|
(105.9
|
)
|
|
(0.2
|
)
|
|
(106.1
|
)
|
|||
Other comprehensive loss
|
|
(1,028.2
|
)
|
|
4.2
|
|
|
(1,024.0
|
)
|
|||
Other comprehensive loss attributable to noncontrolling interests (b)
|
|
(0.3
|
)
|
|
0.1
|
|
|
(0.2
|
)
|
|||
Other comprehensive loss attributable to Liberty Global shareholders
|
|
$
|
(1,028.5
|
)
|
|
$
|
4.3
|
|
|
$
|
(1,024.2
|
)
|
|
|
|
|
|
|
|
||||||
Year ended December 31, 2017:
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
$
|
1,898.7
|
|
|
$
|
—
|
|
|
$
|
1,898.7
|
|
Pension-related adjustments and other
|
|
17.6
|
|
|
(1.9
|
)
|
|
15.7
|
|
|||
Other comprehensive earnings from continuing operations
|
|
1,916.3
|
|
|
(1.9
|
)
|
|
1,914.4
|
|
|||
Other comprehensive earnings from discontinued operations
|
|
30.1
|
|
|
0.3
|
|
|
30.4
|
|
|||
Other comprehensive earnings
|
|
1,946.4
|
|
|
(1.6
|
)
|
|
1,944.8
|
|
|||
Other comprehensive loss attributable to noncontrolling interests (b)
|
|
(1.9
|
)
|
|
0.2
|
|
|
(1.7
|
)
|
|||
Other comprehensive earnings attributable to Liberty Global
shareholders
|
|
$
|
1,944.5
|
|
|
$
|
(1.4
|
)
|
|
$
|
1,943.1
|
|
|
|
|
|
|
|
|
||||||
Year ended December 31, 2016:
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments (a)
|
|
$
|
(1,193.9
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(1,195.6
|
)
|
Pension-related adjustments
|
|
(0.9
|
)
|
|
(1.5
|
)
|
|
(2.4
|
)
|
|||
Other comprehensive loss from continuing operations
|
|
(1,194.8
|
)
|
|
(3.2
|
)
|
|
(1,198.0
|
)
|
|||
Other comprehensive loss from discontinued operations
|
|
(74.8
|
)
|
|
1.4
|
|
|
(73.4
|
)
|
|||
Other comprehensive loss
|
|
(1,269.6
|
)
|
|
(1.8
|
)
|
|
(1,271.4
|
)
|
|||
Other comprehensive earnings attributable to noncontrolling interests (b)
|
|
3.1
|
|
|
—
|
|
|
3.1
|
|
|||
Other comprehensive loss attributable to Liberty Global shareholders
|
|
$
|
(1,266.5
|
)
|
|
$
|
(1.8
|
)
|
|
$
|
(1,268.3
|
)
|
(a)
|
For additional information regarding the reclassification of foreign currency translation adjustments included in net earnings, see the 2018 and 2016 consolidated statements of comprehensive earnings and note
6
.
|
(b)
|
Amounts represent the noncontrolling interest owners’ share of our pension-related adjustments.
|
|
Payments due during:
|
|
|
||||||||||||||||||||||||
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||||
|
in millions
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Network and connectivity commitments
|
$
|
629.4
|
|
|
$
|
282.1
|
|
|
$
|
243.6
|
|
|
$
|
60.3
|
|
|
$
|
44.1
|
|
|
$
|
776.4
|
|
|
$
|
2,035.9
|
|
Programming commitments
|
858.0
|
|
|
558.7
|
|
|
286.2
|
|
|
52.1
|
|
|
14.2
|
|
|
44.9
|
|
|
1,814.1
|
|
|||||||
Purchase commitments
|
742.8
|
|
|
243.9
|
|
|
88.5
|
|
|
31.9
|
|
|
20.4
|
|
|
45.5
|
|
|
1,173.0
|
|
|||||||
Operating leases
|
123.9
|
|
|
85.4
|
|
|
66.6
|
|
|
54.3
|
|
|
46.8
|
|
|
178.6
|
|
|
555.6
|
|
|||||||
Other commitments
|
27.0
|
|
|
3.2
|
|
|
0.5
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
31.0
|
|
|||||||
Total
|
$
|
2,381.1
|
|
|
$
|
1,173.3
|
|
|
$
|
685.4
|
|
|
$
|
198.9
|
|
|
$
|
125.5
|
|
|
$
|
1,045.4
|
|
|
$
|
5,609.6
|
|
•
|
U.K./Ireland
|
•
|
Belgium
|
•
|
Switzerland
|
•
|
Central and Eastern Europe
|
•
|
VodafoneZiggo JV
|
|
Year ended December 31,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
|
Revenue
|
|
Adjusted OIBDA
|
|
Revenue
|
|
Adjusted OIBDA
|
|
Revenue
|
|
Adjusted OIBDA
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.K./Ireland
|
$
|
6,875.1
|
|
|
$
|
3,057.2
|
|
|
$
|
6,398.7
|
|
|
$
|
2,884.0
|
|
|
$
|
6,508.8
|
|
|
$
|
2,921.7
|
|
Belgium
|
2,993.6
|
|
|
1,480.0
|
|
|
2,865.3
|
|
|
1,300.3
|
|
|
2,691.1
|
|
|
1,173.6
|
|
||||||
Switzerland
|
1,326.0
|
|
|
748.7
|
|
|
1,370.1
|
|
|
832.6
|
|
|
1,377.4
|
|
|
862.8
|
|
||||||
Central and Eastern Europe
|
492.2
|
|
|
249.1
|
|
|
467.5
|
|
|
233.5
|
|
|
441.3
|
|
|
227.4
|
|
||||||
The Netherlands
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,690.8
|
|
|
1,472.7
|
|
||||||
Central and Corporate
|
274.2
|
|
|
(371.7
|
)
|
|
189.4
|
|
|
(415.8
|
)
|
|
84.1
|
|
|
(573.6
|
)
|
||||||
Intersegment eliminations (a)
|
(3.2
|
)
|
|
(11.8
|
)
|
|
(14.6
|
)
|
|
(9.5
|
)
|
|
(62.4
|
)
|
|
(4.2
|
)
|
||||||
Total
|
$
|
11,957.9
|
|
|
$
|
5,151.5
|
|
|
$
|
11,276.4
|
|
|
$
|
4,825.1
|
|
|
$
|
13,731.1
|
|
|
$
|
6,080.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
VodafoneZiggo JV
|
$
|
4,602.2
|
|
|
$
|
2,009.7
|
|
|
$
|
4,512.5
|
|
|
$
|
1,910.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
Amounts are related to transactions between our continuing and discontinued operations prior to the disposal dates of such discontinued operations.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Adjusted OIBDA from continuing operations
|
$
|
5,151.5
|
|
|
$
|
4,825.1
|
|
|
$
|
6,080.4
|
|
Share-based compensation expense
|
(206.0
|
)
|
|
(162.2
|
)
|
|
(268.1
|
)
|
|||
Depreciation and amortization
|
(3,858.2
|
)
|
|
(3,790.6
|
)
|
|
(4,117.7
|
)
|
|||
Impairment, restructuring and other operating items, net
|
(248.2
|
)
|
|
(79.9
|
)
|
|
(124.5
|
)
|
|||
Operating income
|
839.1
|
|
|
792.4
|
|
|
1,570.1
|
|
|||
Interest expense
|
(1,478.7
|
)
|
|
(1,416.1
|
)
|
|
(1,866.1
|
)
|
|||
Realized and unrealized gains (losses) on derivative instruments, net
|
1,125.8
|
|
|
(1,052.8
|
)
|
|
1,022.3
|
|
|||
Foreign currency transaction
gains (losses), net
|
90.4
|
|
|
(181.5
|
)
|
|
(326.3
|
)
|
|||
Realized and unrealized gains (losses) due to changes in fair values of certain investments and debt, net
|
(384.5
|
)
|
|
43.4
|
|
|
(456.1
|
)
|
|||
Losses
on debt modification and extinguishment, net
|
(65.0
|
)
|
|
(252.2
|
)
|
|
(233.8
|
)
|
|||
Share of results of affiliates, net
|
(8.7
|
)
|
|
(95.2
|
)
|
|
(111.6
|
)
|
|||
Gain on the VodafoneZiggo JV Transaction
|
—
|
|
|
4.5
|
|
|
520.8
|
|
|||
Other income, net
|
43.4
|
|
|
46.4
|
|
|
124.0
|
|
|||
Earnings (loss) from continuing operations before income taxes
|
$
|
161.8
|
|
|
$
|
(2,111.1
|
)
|
|
$
|
243.3
|
|
|
Long-lived assets
|
|
Total assets
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
in millions
|
||||||||||||||
U.K./Ireland
|
$
|
16,254.6
|
|
|
$
|
17,678.3
|
|
|
$
|
20,702.5
|
|
|
$
|
21,968.4
|
|
Belgium
|
5,979.4
|
|
|
6,067.9
|
|
|
6,972.1
|
|
|
6,992.8
|
|
||||
Switzerland
|
4,165.4
|
|
|
4,212.5
|
|
|
4,496.0
|
|
|
4,528.9
|
|
||||
Central and Eastern Europe
|
1,087.4
|
|
|
1,161.2
|
|
|
1,130.8
|
|
|
1,191.8
|
|
||||
Central and Corporate (a)
|
1,142.2
|
|
|
994.8
|
|
|
9,321.1
|
|
|
11,401.5
|
|
||||
Total - continuing operations
|
$
|
28,629.0
|
|
|
$
|
30,114.7
|
|
|
$
|
42,622.5
|
|
|
$
|
46,083.4
|
|
|
|
|
|
|
|
|
|
||||||||
VodafoneZiggo JV
|
$
|
22,026.2
|
|
|
$
|
24,017.4
|
|
|
$
|
23,255.3
|
|
|
$
|
24,900.2
|
|
(a)
|
The total asset amounts include our equity method investment in the
VodafoneZiggo JV
and related receivables.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
U.K./Ireland
|
$
|
1,988.9
|
|
|
$
|
2,161.8
|
|
|
$
|
1,761.1
|
|
Belgium
|
790.8
|
|
|
691.0
|
|
|
588.4
|
|
|||
Switzerland
|
249.6
|
|
|
244.4
|
|
|
260.4
|
|
|||
Central and Eastern Europe
|
152.8
|
|
|
158.2
|
|
|
128.6
|
|
|||
The Netherlands
|
—
|
|
|
—
|
|
|
588.9
|
|
|||
Central and Corporate (a)
|
523.5
|
|
|
448.1
|
|
|
406.4
|
|
|||
Total property and equipment additions
|
3,705.6
|
|
|
3,703.5
|
|
|
3,733.8
|
|
|||
Assets acquired under capital-related vendor financing arrangements
|
(2,175.5
|
)
|
|
(2,336.2
|
)
|
|
(1,811.2
|
)
|
|||
Assets acquired under capital leases
|
(102.4
|
)
|
|
(106.7
|
)
|
|
(100.4
|
)
|
|||
Changes in current liabilities related to capital expenditures
|
25.3
|
|
|
(10.6
|
)
|
|
(282.3
|
)
|
|||
Total capital expenditures, net
|
$
|
1,453.0
|
|
|
$
|
1,250.0
|
|
|
$
|
1,539.9
|
|
|
|
|
|
|
|
||||||
Capital expenditures, net:
|
|
|
|
|
|
||||||
Third-party payments
|
$
|
1,552.7
|
|
|
$
|
1,586.5
|
|
|
$
|
1,738.2
|
|
Proceeds received for transfers to related parties (b)
|
(99.7
|
)
|
|
(336.5
|
)
|
|
(198.3
|
)
|
|||
Total capital expenditures, net
|
$
|
1,453.0
|
|
|
$
|
1,250.0
|
|
|
$
|
1,539.9
|
|
|
|
|
|
|
|
||||||
Property and equipment additions - VodafoneZiggo JV
|
$
|
988.7
|
|
|
$
|
933.9
|
|
|
$
|
—
|
|
(a)
|
Includes amounts that represent the net impact of changes in inventory levels associated with certain centrally-procured network equipment. Most of this equipment is ultimately transferred to our operating subsidiaries.
|
(b)
|
Primarily relates to transfers of centrally-procured property and equipment to our discontinued operations and the
VodafoneZiggo JV
.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
Residential revenue:
|
|
|
|
|
|
||||||
Residential cable revenue (a):
|
|
|
|
|
|
||||||
Subscription revenue (b):
|
|
|
|
|
|
||||||
Video
|
$
|
2,863.2
|
|
|
$
|
2,786.5
|
|
|
$
|
4,060.0
|
|
Broadband internet
|
3,226.6
|
|
|
2,979.7
|
|
|
3,579.0
|
|
|||
Fixed-line telephony
|
1,607.8
|
|
|
1,599.8
|
|
|
2,149.5
|
|
|||
Total subscription revenue
|
7,697.6
|
|
|
7,366.0
|
|
|
9,788.5
|
|
|||
Non-subscription revenue
|
279.1
|
|
|
343.6
|
|
|
311.9
|
|
|||
Total residential cable revenue
|
7,976.7
|
|
|
7,709.6
|
|
|
10,100.4
|
|
|||
Residential mobile revenue (c):
|
|
|
|
|
|
||||||
Subscription revenue (b)
|
983.5
|
|
|
999.7
|
|
|
1,103.9
|
|
|||
Non-subscription revenue
|
694.8
|
|
|
607.1
|
|
|
590.8
|
|
|||
Total residential mobile revenue
|
1,678.3
|
|
|
1,606.8
|
|
|
1,694.7
|
|
|||
Total residential revenue
|
9,655.0
|
|
|
9,316.4
|
|
|
11,795.1
|
|
|||
B2B revenue (d):
|
|
|
|
|
|
||||||
Subscription revenue
|
446.4
|
|
|
367.6
|
|
|
366.3
|
|
|||
Non-subscription revenue
|
1,537.1
|
|
|
1,372.5
|
|
|
1,487.9
|
|
|||
Total B2B revenue
|
1,983.5
|
|
|
1,740.1
|
|
|
1,854.2
|
|
|||
Other revenue (e)
|
319.4
|
|
|
219.9
|
|
|
81.8
|
|
|||
Total
|
$
|
11,957.9
|
|
|
$
|
11,276.4
|
|
|
$
|
13,731.1
|
|
(a)
|
Residential cable subscription revenue includes amounts received from subscribers for ongoing services. Residential cable non-subscription revenue includes, among other items, channel carriage fees, late fees, and revenue from the sale of equipment. As described in note
2
, we adopted
ASU 2014-09
on January 1, 2018 using the cumulative effect transition method. For periods subsequent to our adoption of
ASU 2014-09
, installation revenue is generally deferred and recognized over the contractual period as residential cable subscription revenue. For periods prior to the adoption of
ASU 2014-09
, installation revenue is included in residential cable non-subscription revenue.
|
(b)
|
Residential subscription revenue from subscribers who purchase bundled services at a discounted rate is generally allocated proportionally to each service based on the standalone price for each individual service. As a result, changes in the standalone pricing of our cable and mobile products or the composition of bundles can contribute to changes in our product revenue categories from period to period.
|
(c)
|
Residential mobile subscription revenue includes amounts received from subscribers for ongoing services. Residential mobile non-subscription revenue includes, among other items, interconnect revenue and revenue from sales of mobile handsets and other devices.
|
(d)
|
B2B
subscription revenue represents revenue from services to certain small or home office (
SOHO
) subscribers.
SOHO
subscribers pay a premium price to receive expanded service levels along with video, broadband internet, fixed-line telephony or mobile services that are the same or similar to the mass marketed products offered to our residential subscribers.
B2B
non-subscription revenue includes business broadband internet, video, fixed-line telephony, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other operators.
|
(e)
|
Other revenue includes, among other items, revenue earned from the JV Services, broadcasting revenue in Ireland and revenue from Central and Corporate’s wholesale handset program. In addition, the amount for 2018 includes revenue earned from (i) sales of customer premises equipment to the VodafoneZiggo JV and (ii) transitional and other services provided to Deutsche Telekom and Liberty Latin America.
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
U.K.
|
$
|
6,351.2
|
|
|
$
|
5,927.9
|
|
|
$
|
6,070.4
|
|
Belgium
|
2,993.6
|
|
|
2,865.3
|
|
|
2,691.1
|
|
|||
Switzerland
|
1,326.0
|
|
|
1,370.1
|
|
|
1,377.4
|
|
|||
Ireland
|
523.9
|
|
|
470.8
|
|
|
438.4
|
|
|||
Poland
|
440.7
|
|
|
417.9
|
|
|
391.4
|
|
|||
Slovakia
|
51.5
|
|
|
49.6
|
|
|
49.9
|
|
|||
The Netherlands
|
—
|
|
|
—
|
|
|
2,690.8
|
|
|||
Other, including intersegment eliminations
|
271.0
|
|
|
174.8
|
|
|
21.7
|
|
|||
Total
|
$
|
11,957.9
|
|
|
$
|
11,276.4
|
|
|
$
|
13,731.1
|
|
|
|
|
|
|
|
||||||
VodafoneZiggo JV (the Netherlands)
|
$
|
4,602.2
|
|
|
$
|
4,512.5
|
|
|
$
|
—
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
|
|
|
|
||||
U.K.
|
$
|
15,489.2
|
|
|
$
|
16,902.9
|
|
Belgium
|
5,979.4
|
|
|
6,067.9
|
|
||
Switzerland
|
4,165.4
|
|
|
4,212.5
|
|
||
Poland
|
958.7
|
|
|
1,028.4
|
|
||
Ireland
|
765.4
|
|
|
775.4
|
|
||
Slovakia
|
128.7
|
|
|
132.8
|
|
||
U.S. and other (a)
|
1,142.2
|
|
|
994.8
|
|
||
Total
|
$
|
28,629.0
|
|
|
$
|
30,114.7
|
|
|
|
|
|
||||
VodafoneZiggo JV (the Netherlands)
|
$
|
22,026.2
|
|
|
$
|
24,017.4
|
|
(a)
|
Primarily relates to certain long-lived assets included in
Central and Corporate
.
|
|
|
2018
|
||||||||||||||
|
|
1
st
quarter
|
|
2
nd
quarter
|
|
3
rd
quarter
|
|
4
th
quarter
|
||||||||
|
|
in millions, except per share amounts
|
||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
||||||||
As previously reported
|
|
$
|
4,156.1
|
|
|
$
|
3,045.1
|
|
|
$
|
2,958.1
|
|
|
$
|
2,949.1
|
|
Effect of discontinued operations (note 6):
|
|
|
|
|
|
|
|
|
||||||||
Vodafone Disposal Group and UPC Austria
|
|
(1,061.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
UPC DTH
|
|
(31.0
|
)
|
|
(29.5
|
)
|
|
(28.4
|
)
|
|
—
|
|
||||
As adjusted
|
|
$
|
3,063.5
|
|
|
$
|
3,015.6
|
|
|
$
|
2,929.7
|
|
|
$
|
2,949.1
|
|
Operating income:
|
|
|
|
|
|
|
|
|
||||||||
As previously reported
|
|
$
|
493.1
|
|
|
$
|
263.9
|
|
|
$
|
208.6
|
|
|
$
|
252.4
|
|
Effect of discontinued operations (note 6):
|
|
|
|
|
|
|
|
|
||||||||
Vodafone Disposal Group and UPC Austria
|
|
(372.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
UPC DTH
|
|
(2.9
|
)
|
|
0.2
|
|
|
(3.5
|
)
|
|
—
|
|
||||
As adjusted
|
|
$
|
117.5
|
|
|
$
|
264.1
|
|
|
$
|
205.1
|
|
|
$
|
252.4
|
|
Net earnings (loss)
|
|
$
|
(1,178.6
|
)
|
|
$
|
950.5
|
|
|
$
|
1,025.9
|
|
|
$
|
52.2
|
|
Net earnings (loss) attributable to Liberty Global shareholders
|
|
$
|
(1,186.5
|
)
|
|
$
|
912.6
|
|
|
$
|
974.1
|
|
|
$
|
25.1
|
|
Basic earnings (loss) attributable to Liberty Global shareholders per share (notes 3 and 6)
|
|
$
|
(1.47
|
)
|
|
$
|
1.16
|
|
|
$
|
1.23
|
|
|
$
|
0.03
|
|
Diluted earnings (loss) attributable to Liberty Global shareholders per share (notes 3 and 6)
|
|
$
|
(1.47
|
)
|
|
$
|
1.15
|
|
|
$
|
1.23
|
|
|
$
|
0.03
|
|
|
|
2017
|
||||||||||||||
|
|
1
st
quarter
|
|
2
nd
quarter
|
|
3
rd
quarter
|
|
4
th
quarter
|
||||||||
|
|
in millions, except per share amounts
|
||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
||||||||
As previously reported
|
|
$
|
3,519.0
|
|
|
$
|
2,774.9
|
|
|
$
|
2,929.0
|
|
|
$
|
3,987.7
|
|
Effect of discontinued operations (note 6):
|
|
|
|
|
|
|
|
|
||||||||
Vodafone Disposal Group and UPC Austria
|
|
(849.2
|
)
|
|
—
|
|
|
—
|
|
|
(970.4
|
)
|
||||
UPC DTH
|
|
(27.3
|
)
|
|
(28.1
|
)
|
|
(29.7
|
)
|
|
(29.5
|
)
|
||||
As adjusted
|
|
$
|
2,642.5
|
|
|
$
|
2,746.8
|
|
|
$
|
2,899.3
|
|
|
$
|
2,987.8
|
|
Operating income:
|
|
|
|
|
|
|
|
|
||||||||
As previously reported
|
|
$
|
427.1
|
|
|
$
|
208.9
|
|
|
$
|
221.6
|
|
|
$
|
495.8
|
|
Effect of discontinued operations (note 6):
|
|
|
|
|
|
|
|
|
||||||||
Vodafone Disposal Group and UPC Austria
|
|
(210.4
|
)
|
|
—
|
|
|
—
|
|
|
(334.5
|
)
|
||||
UPC DTH
|
|
(2.5
|
)
|
|
(2.6
|
)
|
|
(2.8
|
)
|
|
(3.8
|
)
|
||||
Effect of Accounting Change (note 2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.4
|
)
|
||||
As adjusted
|
|
$
|
214.2
|
|
|
$
|
206.3
|
|
|
$
|
218.8
|
|
|
$
|
153.1
|
|
Net loss
|
|
$
|
(267.2
|
)
|
|
$
|
(652.4
|
)
|
|
$
|
(779.0
|
)
|
|
$
|
(1,022.0
|
)
|
Net loss attributable to Liberty Global shareholders
|
|
$
|
(320.2
|
)
|
|
$
|
(674.3
|
)
|
|
$
|
(791.6
|
)
|
|
$
|
(992.0
|
)
|
Basic and diluted loss attributable to Liberty Global shareholders per share (notes 3 and 5):
|
|
|
|
|
|
|
|
|
||||||||
Liberty Global Shares
|
|
$
|
(0.33
|
)
|
|
$
|
(0.75
|
)
|
|
$
|
(0.55
|
)
|
|
$
|
(0.68
|
)
|
LiLAC Shares
|
|
$
|
(0.16
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(1.93
|
)
|
|
$
|
(2.55
|
)
|
Item 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
|
Plan Category
|
|
Number of
securities to be
issued upon
exercise of
outstanding
options, warrants
and rights (1)(2)
|
|
Weighted average
exercise price of
outstanding
options, warrants
and rights (1)(2)
|
|
Number of
securities
available for
future issuance
under equity
compensation
plans (excluding securities reflected in the first column)
|
||||
Equity compensation plans approved by security holders:
|
|
|
|
|
|
|
||||
Liberty Global 2014 Incentive Plan (3):
|
|
|
|
|
|
|
||||
Total ordinary shares available for issuance
|
|
|
|
|
|
46,220,904
|
|
|||
Liberty Global Class A ordinary shares
|
|
12,367,221
|
|
|
$
|
34.24
|
|
|
|
|
Liberty Global Class C ordinary shares
|
|
24,805,745
|
|
|
$
|
33.08
|
|
|
|
|
Liberty Global 2014 Nonemployee Director Incentive Plan (4):
|
|
|
|
|
|
|
||||
Total ordinary shares available for issuance
|
|
|
|
|
|
9,108,222
|
|
|||
Liberty Global Class A ordinary shares
|
|
375,213
|
|
|
$
|
33.44
|
|
|
|
|
Liberty Global Class C ordinary shares
|
|
879,726
|
|
|
$
|
31.68
|
|
|
|
|
Liberty Global 2005 Incentive Plan (5):
|
|
|
|
|
|
—
|
|
|||
Liberty Global Class A ordinary shares
|
|
3,936,125
|
|
|
$
|
26.94
|
|
|
|
|
Liberty Global Class C ordinary shares
|
|
11,813,648
|
|
|
$
|
25.57
|
|
|
|
|
Liberty Global 2005 Director Incentive Plan (5):
|
|
|
|
|
|
—
|
|
|||
Liberty Global Class A ordinary shares
|
|
130,847
|
|
|
$
|
17.31
|
|
|
|
|
Liberty Global Class C ordinary shares
|
|
404,564
|
|
|
$
|
16.61
|
|
|
|
|
VM Incentive Plan (5):
|
|
|
|
|
|
—
|
|
|||
Liberty Global Class A ordinary shares
|
|
278,395
|
|
|
$
|
25.17
|
|
|
|
|
Liberty Global Class C ordinary shares
|
|
1,985,006
|
|
|
$
|
24.57
|
|
|
|
|
Equity compensation plans not approved by security holders:
|
|
|
|
|
|
|
||||
None
|
|
—
|
|
|
|
|
—
|
|
||
Totals:
|
|
|
|
|
|
|
||||
Total ordinary shares available for issuance
|
|
|
|
|
|
55,329,126
|
|
|||
Liberty Global Class A ordinary shares
|
|
17,087,801
|
|
|
|
|
|
|||
Liberty Global Class C ordinary shares
|
|
39,888,689
|
|
|
|
|
|
(1)
|
This table includes (i) SARs and PSARs with respect to 16,507,547 and 37,221,183, Liberty Global Class A and Liberty Global Class C ordinary shares, respectively. Upon exercise, the appreciation of a SAR, which is the difference between the base price of the SAR and the then-market value of the respective underlying class of ordinary shares or in certain cases, if lower, a specified price, may be paid in shares of the applicable class of ordinary shares. Based upon the respective market prices of Liberty Global Class A and Class C ordinary shares at
December 31, 2018
and excluding any related tax effects, 39,820
and 125,437 Liberty Global Class A and Liberty Global Class C ordinary shares, respectively, would have been issued if all outstanding and in-the-money SARs had been exercised on
December 31, 2018
. For further information, see note
14
to our consolidated financial statements.
|
(2)
|
In addition to the option, SAR and PSAR information included in this table, there are outstanding RSU and PSU awards under the various incentive plans with respect to an aggregate of 3,668,873 and 7,340,880, Liberty Global Class A and Liberty Global Class C ordinary shares, respectively.
|
(3)
|
The Liberty Global 2014 Incentive Plan permits grants of, or with respect to, Liberty Global Class A, Class B, or Class C ordinary shares subject to a single aggregate limit of 105 million shares (of which no more than 50.25 million shares may consist of Class B shares), subject to anti-dilution adjustments. As of
December 31, 2018
, an aggregate of 46,220,904 ordinary shares were available for issuance pursuant to the incentive plan. For further information, see note
14
to our consolidated financial statements.
|
(4)
|
The Liberty Global 2014 Nonemployee Director Incentive Plan permits grants of, or with respect to, Liberty Global Class A, Class B, or Class C ordinary shares subject to a single aggregate limit of 10.5 million shares, subject to anti-dilution adjustments. As of
December 31, 2018
, an aggregate of 9,108,222 ordinary shares were available for issuance pursuant to the Liberty Global 2014 Nonemployee Director Incentive Plan. For further information, see note 13 to our consolidated financial statements.
|
(5)
|
On January 30, 2014, our shareholders approved the Liberty Global 2014 Incentive Plan and the Liberty Global 2014 Nonemployee Director Incentive Plan and, accordingly, no further awards will be granted under the Liberty Global 2005 Incentive Plan, the Liberty Global 2005 Director Incentive Plan or the VM Incentive Plan.
|
Item 15.
|
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
|
Schedule I - Condensed Financial Information of Registrant (Parent Company Information):
|
|
Liberty Global plc Condensed Balance Sheets as of December 31, 2018 and 2017 (Parent Company Only)
|
|
Liberty Global plc Condensed Statements of Operations for the years ended December 31, 2018, 2017 and 2016 (Parent Company Only)
|
|
Liberty Global plc Condensed Statements of Cash Flows for the years ended December 31, 2018, 2017, and 2016 (Parent Company Only)
|
|
Schedule II - Valuation and Qualifying Accounts
|
2 -- Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession:
|
||
2.1
|
|
|
2.2
|
|
|
3 -- Articles of Incorporation and Bylaws:
|
||
3.1
|
|
|
4 -- Instruments Defining the Rights of Securities Holders, including Indentures:
|
||
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
4.6
|
|
|
4.7
|
|
|
4.8
|
|
|
4.9
|
|
|
4.10
|
|
|
4.12
|
|
|
4.13
|
|
|
4.14
|
|
|
4.15
|
|
|
4.16
|
|
|
4.17
|
|
|
4.18
|
|
|
4.19
|
|
|
4.20
|
|
|
4.21
|
|
4.22
|
|
|
4.23
|
|
|
4.24
|
|
|
4.25
|
|
|
4.26
|
|
|
4.27
|
|
|
4.28
|
|
|
4.29
|
|
|
4.30
|
|
|
4.31
|
|
|
4.32
|
|
|
4.33
|
|
|
4.34
|
|
|
4.35
|
|
|
4.36
|
|
10.17
|
|
|
10.18
|
|
|
10.19
|
|
|
10.20
|
|
|
10.21
|
|
|
10.22
|
|
|
10.23
|
|
|
10.24
|
|
|
10.25
|
|
|
10.26
|
|
|
10.27
|
|
|
10.28
|
|
|
10.29
|
|
|
10.30
|
|
|
10.31
|
|
|
10.32
|
|
|
10.33
|
|
|
10.34
|
|
|
10.35
|
|
|
10.36
|
|
|
10.37
|
|
|
10.38
|
|
Item 16.
|
FORM 10-K SUMMARY
|
|
|
|
LIBERTY GLOBAL PLC
|
|
|
|
|
Dated:
|
February 27, 2019
|
|
/s/ BRYAN H. HALL
|
|
|
|
Bryan H. Hall
Executive Vice President, General Counsel and Secretary
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ JOHN C. MALONE
|
|
Chairman of the Board
|
|
February 27, 2019
|
John C. Malone
|
|
|
|
|
|
|
|
|
|
/s/ MICHAEL T. FRIES
|
|
President, Chief Executive Officer and Director
|
|
February 27, 2019
|
Michael T. Fries
|
|
|
|
|
|
|
|
|
|
/s/ ANDREW J. COLE
|
|
Director
|
|
February 27, 2019
|
Andrew J. Cole
|
|
|
|
|
|
|
|
|
|
/s/ MIRANDA CURTIS
|
|
Director
|
|
February 27, 2019
|
Miranda Curtis
|
|
|
|
|
|
|
|
|
|
/s/ JOHN W. DICK
|
|
Director
|
|
February 27, 2019
|
John W. Dick
|
|
|
|
|
|
|
|
|
|
/s/ PAUL A. GOULD
|
|
Director
|
|
February 27, 2019
|
Paul A. Gould
|
|
|
|
|
|
|
|
|
|
/s/ RICHARD R. GREEN
|
|
Director
|
|
February 27, 2019
|
Richard R. Green
|
|
|
|
|
|
|
|
|
|
/s/ DAVID E. RAPLEY
|
|
Director
|
|
February 27, 2019
|
David E. Rapley
|
|
|
|
|
|
|
|
|
|
/s/ LARRY E. ROMRELL
|
|
Director
|
|
February 27, 2019
|
Larry E. Romrell
|
|
|
|
|
|
|
|
|
|
/s/ J.C. SPARKMAN
|
|
Director
|
|
February 27, 2019
|
J.C. Sparkman
|
|
|
|
|
|
|
|
|
|
/s/ J. DAVID WARGO
|
|
Director
|
|
February 27, 2019
|
J. David Wargo
|
|
|
|
|
|
|
|
|
|
/s/ CHARLES H.R. BRACKEN
|
|
Executive Vice President and Chief Financial Officer
|
|
February 27, 2019
|
Charles H.R. Bracken
|
|
|
|
|
|
|
|
|
|
/s/ JASON WALDRON
|
|
Senior Vice President and Chief Accounting Officer
|
|
February 27, 2019
|
Jason Waldron
|
|
|
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
10.8
|
|
|
$
|
73.2
|
|
Interest receivables — related-party
|
—
|
|
|
1.8
|
|
||
Other receivables — related-party
|
13.0
|
|
|
44.6
|
|
||
Other current assets
|
7.0
|
|
|
5.8
|
|
||
Total current assets
|
30.8
|
|
|
125.4
|
|
||
Long-term notes receivable — related-party
|
1,215.5
|
|
|
975.8
|
|
||
Investments in consolidated subsidiaries, including intercompany balances
|
20,829.5
|
|
|
17,472.6
|
|
||
Other assets, net
|
13.7
|
|
|
17.8
|
|
||
Total assets
|
$
|
22,089.5
|
|
|
$
|
18,591.6
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
in millions
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
3.5
|
|
|
$
|
0.9
|
|
Other payables — related-party
|
26.4
|
|
|
68.7
|
|
||
Current portion of notes payable — related-party
|
3,033.3
|
|
|
2,834.7
|
|
||
Accrued liabilities and other
|
9.1
|
|
|
5.6
|
|
||
Total current liabilities
|
3,072.3
|
|
|
2,909.9
|
|
||
Long-term notes payable — related-party
|
14,332.5
|
|
|
7,884.1
|
|
||
Other long-term liabilities — related-party
|
—
|
|
|
989.9
|
|
||
Other long-term liabilities
|
3.3
|
|
|
2.7
|
|
||
Total liabilities
|
17,408.1
|
|
|
11,786.6
|
|
||
Commitments and contingencies
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Liberty Global Shares — Class A, $0.01 nominal value. Issued and outstanding 204,450,499 and 219,668,579 shares, respectively
|
2.0
|
|
|
2.2
|
|
||
Liberty Global Shares — Class B, $0.01 nominal value. Issued and outstanding 11,099,593 and 11,102,619 shares, respectively
|
0.1
|
|
|
0.1
|
|
||
Liberty Global Shares — Class C, $0.01 nominal value. Issued and outstanding 531,174,389 and 584,332,055 shares, respectively
|
5.3
|
|
|
5.8
|
|
||
Additional paid-in capital
|
9,214.5
|
|
|
11,358.6
|
|
||
Accumulated deficit
|
(5,172.2
|
)
|
|
(6,217.6
|
)
|
||
Accumulated other comprehensive earnings, net of taxes
|
631.8
|
|
|
1,656.0
|
|
||
Treasury shares, at cost
|
(0.1
|
)
|
|
(0.1
|
)
|
||
Total shareholders’ equity
|
4,681.4
|
|
|
6,805.0
|
|
||
Total liabilities and shareholders’ equity
|
$
|
22,089.5
|
|
|
$
|
18,591.6
|
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
Operating costs and expenses:
|
|
|
|
|
|
||||||
Selling, general and administrative (including share-based compensation)
|
$
|
42.8
|
|
|
$
|
44.9
|
|
|
$
|
52.9
|
|
Related-party fees and allocations
|
8.0
|
|
|
55.2
|
|
|
66.3
|
|
|||
Depreciation and amortization
|
1.5
|
|
|
1.0
|
|
|
0.8
|
|
|||
Other operating expenses
|
—
|
|
|
—
|
|
|
0.7
|
|
|||
Operating loss
|
(52.3
|
)
|
|
(101.1
|
)
|
|
(120.7
|
)
|
|||
Non-operating income (expense):
|
|
|
|
|
|
||||||
Interest expense — related-party
|
(678.0
|
)
|
|
(406.5
|
)
|
|
(162.3
|
)
|
|||
Interest income — related-party
|
70.9
|
|
|
822.7
|
|
|
781.0
|
|
|||
Foreign currency transaction gains (losses), net
|
381.0
|
|
|
(644.8
|
)
|
|
45.8
|
|
|||
Other income (expense), net
|
0.1
|
|
|
(3.3
|
)
|
|
(1.3
|
)
|
|||
|
(226.0
|
)
|
|
(231.9
|
)
|
|
663.2
|
|
|||
Earnings (loss) before income taxes and equity in earnings (losses) of consolidated subsidiaries, net
|
(278.3
|
)
|
|
(333.0
|
)
|
|
542.5
|
|
|||
Equity in earnings (losses) of consolidated subsidiaries, net
|
887.9
|
|
|
(2,386.0
|
)
|
|
1,279.7
|
|
|||
Income tax benefit (expense)
|
115.7
|
|
|
(59.1
|
)
|
|
(116.9
|
)
|
|||
Net earnings (loss)
|
$
|
725.3
|
|
|
$
|
(2,778.1
|
)
|
|
$
|
1,705.3
|
|
|
Year ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
in millions
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net earnings (loss)
|
$
|
725.3
|
|
|
$
|
(2,778.1
|
)
|
|
$
|
1,705.3
|
|
Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities:
|
|
|
|
|
|
||||||
Equity in losses (earnings) of consolidated subsidiaries, net
|
(887.9
|
)
|
|
2,386.0
|
|
|
(1,279.7
|
)
|
|||
Share-based compensation expense
|
20.6
|
|
|
19.8
|
|
|
29.0
|
|
|||
Related-party fees and allocations
|
8.0
|
|
|
55.2
|
|
|
66.3
|
|
|||
Depreciation and amortization
|
1.5
|
|
|
1.0
|
|
|
0.8
|
|
|||
Other operating expenses
|
—
|
|
|
—
|
|
|
0.7
|
|
|||
Foreign currency transaction losses (gains), net
|
(381.0
|
)
|
|
644.8
|
|
|
(45.8
|
)
|
|||
Deferred income tax benefit
|
(2.8
|
)
|
|
(1.6
|
)
|
|
(1.7
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Receivables and other operating assets
|
(134.8
|
)
|
|
502.7
|
|
|
116.4
|
|
|||
Payables and accruals
|
564.4
|
|
|
(160.9
|
)
|
|
29.0
|
|
|||
Net cash provided (used) by operating activities
|
(86.7
|
)
|
|
668.9
|
|
|
620.3
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Distribution and repayments from (investments in and advances to) consolidated subsidiaries, net
|
(93.4
|
)
|
|
1,188.7
|
|
|
(133.6
|
)
|
|||
Other investing activities, net
|
—
|
|
|
(7.0
|
)
|
|
0.3
|
|
|||
Net cash provided (used) by investing activities
|
(93.4
|
)
|
|
1,181.7
|
|
|
(133.3
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Borrowings of related-party debt
|
3,133.3
|
|
|
4,632.7
|
|
|
5,249.8
|
|
|||
Repayments of related-party debt
|
(1,010.0
|
)
|
|
(3,496.0
|
)
|
|
(3,751.5
|
)
|
|||
Repurchase of Liberty Global ordinary shares
|
(2,009.9
|
)
|
|
(2,976.2
|
)
|
|
(1,968.3
|
)
|
|||
Proceeds from issuance of Liberty Global shares upon exercise of options
|
5.7
|
|
|
11.7
|
|
|
17.4
|
|
|||
Proceeds associated with call option contracts, net
|
—
|
|
|
—
|
|
|
9.2
|
|
|||
Other financing activities, net
|
(1.4
|
)
|
|
(8.1
|
)
|
|
(9.4
|
)
|
|||
Net cash provided (
used)
by financing activities
|
117.7
|
|
|
(1,835.9
|
)
|
|
(452.8
|
)
|
|||
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash
|
—
|
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|||
|
|
|
|
|
|
||||||
Net
increase (decrease)
in cash and cash equivalents
|
(62.4
|
)
|
|
14.3
|
|
|
33.9
|
|
|||
Cash and cash equivalents:
|
|
|
|
|
|
||||||
Beginning of period
|
78.4
|
|
|
64.1
|
|
|
30.2
|
|
|||
End of period
|
$
|
16.0
|
|
|
$
|
78.4
|
|
|
$
|
64.1
|
|
|
|
|
|
|
|
||||||
Details of end of period cash and cash equivalents and restricted cash:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
10.8
|
|
|
$
|
73.2
|
|
|
$
|
58.9
|
|
Restricted cash included in other current assets
|
5.2
|
|
|
5.2
|
|
|
5.2
|
|
|||
Total cash and cash equivalents and restricted cash
|
$
|
16.0
|
|
|
$
|
78.4
|
|
|
$
|
64.1
|
|
|
Allowance for doubtful accounts — Trade receivables (Continuing operations)
|
||||||||||||||||||||||||
|
Balance at
beginning
of period
|
|
Impact of the adoption of ASU 2014-09
|
|
Additions to
costs and
expenses
|
|
Acquisitions
|
|
VodafoneZiggo JV Transaction
|
|
Deductions
or write-offs
|
|
Foreign
currency
translation
adjustments
|
|
Balance at
end of
period
|
||||||||||
|
in millions
|
||||||||||||||||||||||||
Year ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2016
|
$
|
60.8
|
|
|
—
|
|
|
50.9
|
|
|
3.8
|
|
|
(13.0
|
)
|
|
(39.3
|
)
|
|
(7.1
|
)
|
|
$
|
56.1
|
|
2017
|
$
|
56.1
|
|
|
—
|
|
|
51.6
|
|
|
1.5
|
|
|
—
|
|
|
(41.7
|
)
|
|
6.7
|
|
|
$
|
74.2
|
|
2018
|
$
|
74.2
|
|
|
11.9
|
|
|
61.6
|
|
|
—
|
|
|
—
|
|
|
(98.4
|
)
|
|
(3.5
|
)
|
|
$
|
45.8
|
|