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Segment Information | 6 Months Ended
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Jun. 30, 2019
Segment Information |
Segment Information | (8) Segment Information Liberty Broadband identifies its reportable segments as (A) those consolidated companies that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings or losses represent 10% or more of Liberty Broadband’s annual pre-tax earnings (losses). Liberty Broadband evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, Liberty Broadband reviews nonfinancial measures such as subscriber growth. Liberty Broadband defines Adjusted OIBDA, a non-GAAP measure, as revenue less operating expenses and selling, general and administrative expenses (excluding stock-based compensation). Liberty Broadband believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net earnings, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Liberty Broadband generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices. For the six months ended June 30, 2019, Liberty Broadband has identified the following consolidated company and equity method investment as its reportable segments:
| ● | Skyhook—a wholly owned subsidiary of the Company that provides the Precision Location Solution (a location determination service) and Geospatial Insights product (a location intelligence and data insights service).
| ● | Charter—an equity method investment that is one of the largest providers of cable services in the United States, offering a variety of entertainment, information and communications solutions to residential and commercial customers.
Liberty Broadband’s operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated companies are the same as those described in the Company’s summary of significant accounting policies in the Company’s annual financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018. We have included amounts attributable to Charter in the tables below. Although Liberty Broadband owns less than 100% of the outstanding shares of Charter, 100% of the Charter amounts are included in the schedule below and subsequently eliminated in order to reconcile the account totals to the Liberty Broadband condensed consolidated financial statements. Performance Measures ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended June 30, |
​ | ​ | 2019 | ​ | 2018 |
​ | ​ | ​ | ​ | ​ | Adjusted | ​ | ​ | ​ | Adjusted |
​ | ​ | Revenue | ​ | OIBDA | ​ | Revenue | ​ | OIBDA |
​ | ​ | ​ | (amounts in thousands) |
Skyhook |  | $ | 3,747 |  | (876) |  | 3,371 |  | (1,023) | ​
Charter | ​ |  | 11,347,000 | ​ | 4,123,000 | ​ | 10,854,000 | ​ | 4,022,000 | ​
Corporate and other | ​ |  | — | ​ | (3,298) | ​ | — | ​ | (1,753) | ​
​ | ​ |  | 11,350,747 | ​ | 4,118,826 | ​ | 10,857,371 | ​ | 4,019,224 | ​
Eliminate equity method affiliate | ​ |  | (11,347,000) | ​ | (4,123,000) | ​ | (10,854,000) | ​ | (4,022,000) | ​
Consolidated Liberty Broadband | ​ | $ | 3,747 | ​ | (4,174) | ​ | 3,371 | ​ | (2,776) | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six months ended June 30, |
​ | ​ | 2019 | ​ | 2018 |
​ | ​ | ​ | ​ | Adjusted | ​ | ​ | ​ | Adjusted |
​ | ​ | Revenue | ​ | OIBDA | ​ | Revenue | ​ | OIBDA |
​ | ​ | (amounts in thousands) |
Skyhook |  | $ | 7,205 |  | (2,069) |  | 15,162 |  | 5,076 | ​
Charter | ​ |  | 22,553,000 |  | 8,183,000 |  | 21,511,000 |  | 7,846,000 | ​
Corporate and other | ​ |  | — |  | (5,222) |  | — |  | (3,292) | ​
​ | ​ |  | 22,560,205 |  | 8,175,709 |  | 21,526,162 |  | 7,847,784 | ​
Eliminate equity method affiliate | ​ |  | (22,553,000) |  | (8,183,000) |  | (21,511,000) |  | (7,846,000) | ​
Consolidated Liberty Broadband | ​ | $ | 7,205 |  | (7,291) |  | 15,162 |  | 1,784 | ​
​ Other Information ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2019 |
​ | ​ | Total | ​ | Investments | ​ | Capital |
​ | ​ | assets | ​ | in affiliates | ​ | expenditures |
​ | ​ | (amounts in thousands) |
Skyhook |  | $ | 22,765 |  | — |  | 50 | ​
Charter | ​ |  | 146,085,000 |  | — |  | 3,262,000 | ​
Corporate and other | ​ |  | 12,084,404 |  | 12,023,742 |  | — | ​
​ | ​ |  | 158,192,169 |  | 12,023,742 |  | 3,262,050 | ​
Eliminate equity method affiliate | ​ |  | (146,085,000) |  | — |  | (3,262,000) | ​
Consolidated Liberty Broadband | ​ | $ | 12,107,169 |  | 12,023,742 |  | 50 | ​
​ The following table provides a reconciliation of consolidated segment Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended | ​ | Six months |
​ | ​ | June 30, | ​ | ended June 30, |
​ | ​ | 2019 | ​ | 2018 | ​ | 2019 |  | 2018 |
​ | ​ | ​ | (amounts in thousands) |
Consolidated segment Adjusted OIBDA |  | $ | (4,174) |  | (2,776) |  | (7,291) |  | 1,784 | ​
Stock-based compensation | ​ |  | (2,523) | ​ | (1,396) | ​ | (5,139) |  | (2,801) | ​
Depreciation and amortization | ​ |  | (469) | ​ | (899) | ​ | (937) |  | (1,808) | ​
Operating income (loss) | ​ | ​ | (7,166) | ​ | (5,071) | ​ | (13,367) | ​ | (2,825) | ​
Interest expense | ​ | ​ | (6,342) | ​ | (6,035) | ​ | (12,885) |  | (11,072) | ​
Share of earnings (loss) of affiliates, net | ​ |  | 45,400 | ​ | 32,911 | ​ | 80,249 |  | 42,213 | ​
Gain (loss) on dilution of investment in affiliate | ​ |  | (16,322) | ​ | (5,205) | ​ | (57,725) |  | (31,962) | ​
Realized and unrealized gains (losses) on financial instruments, net | ​ |  | — | ​ | (2,019) | ​ | — |  | (2,019) | ​
Other, net | ​ |  | 406 | ​ | 193 | ​ | 829 |  | 418 | ​
Earnings (loss) before income taxes | ​ | $ | 15,976 | ​ | 14,774 | ​ | (2,899) |  | (5,247) | ​
​

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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