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Segment Information | 3 Months Ended
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Mar. 31, 2021
Segment Information |
Segment Information | (11) 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). During the first quarter of 2021, as a result of the closing of the Combination on December 18, 2020, Skyhook Holding, Inc., a wholly owned subsidiary of the Company, is no longer significant to the Company and has been included in Corporate and other for presentation purposes. The revised segment reporting structure includes the following reportable segments: (1) GCI Holdings and (2) Charter. All prior period segment disclosure information has been reclassified to conform to the current reporting structure. These reclassifications had no effect on our condensed consolidated financial statements in any period. 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. For the three months ended March 31, 2021, Liberty Broadband has identified the following consolidated company and equity method investment as its reportable segments:
| ● | GCI Holdings – a wholly owned subsidiary of the Company that provides a full range of wireless, data, video, voice, and managed services to residential, businesses, governmental entities, and educational and medical institutions primarily in Alaska.
| ● | 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 segment that is also a consolidated company 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, 2020. 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 tables below and subsequently eliminated in order to reconcile the account totals to the Liberty Broadband condensed consolidated financial statements. Performance Measures Revenue by segment from contracts with customers, classified by customer type and significant service offerings follows: ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended
​ | ​ | March 31,
​ | ​ | 2021 |  | 2020
​ | ​ | amounts in thousands
GCI Holdings | ​ | ​ |  |  |
Consumer Revenue | ​ | ​ |  |  |
Wireless | ​ | $ | 31,971 | ​ | —
Data | ​ |  | 52,225 | ​ | —
Video | ​ |  | 18,929 | ​ | —
Voice | ​ |  | 3,554 | ​ | —
Business Revenue | ​ |  | ​ | ​ | ​
Wireless | ​ |  | 18,901 | ​ | —
Data | ​ |  | 90,286 | ​ | —
Video | ​ |  | 802 | ​ | —
Voice | ​ |  | 6,148 | ​ | —
Lease, grant, and revenue from subsidies | ​ |  | 19,400 | ​ | —
Total GCI Holdings | ​ | ​ | 242,216 | ​ | —
Corporate and other | ​ | ​ | 4,318 | ​ | 4,104
Total | ​ | $ | 246,534 |  | 4,104
​ Charter revenue totaled $12,522 million and $11,738 million for the three months ended March 31, 2021 and 2020, respectively. The Company had gross receivables of $206.0 million and deferred revenue of $31.0 million at March 31, 2021 from contracts with customers, which amounts exclude receivables and deferred revenue arising from leases, grants, and subsidies. Our customers generally pay for services in advance of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as revenue in the accompanying condensed consolidated statements of operations as the services are provided. Changes in the contract liability balance for the Company during the three ended March 31, 2021 were not materially impacted by other factors. The Company expects to recognize revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) of approximately $177.4 million in the remainder of 2021, $159.3 million in 2022, $63.3 million in 2023, $25.2 million in 2024 and $54.3 million in 2025 and thereafter. For segment reporting purposes, Liberty Broadband defines Adjusted OIBDA as revenue less operating expenses and selling, general and administrative expenses (excluding stock-based compensation and transaction costs). 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, transaction costs, 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. Adjusted OIBDA is summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended March 31, | ​
​ | ​ | 2021 | ​ | 2020 | ​
​ | ​ | amounts in thousands | ​
GCI Holdings |  | $ | 96,059 |  | — |
Charter | ​ |  | 4,643,000 | ​ | 4,389,000 | ​
Corporate and other | ​ |  | (13,306) | ​ | (4,981) | ​
​ | ​ |  | 4,725,753 | ​ | 4,384,019 | ​
Eliminate equity method affiliate | ​ |  | (4,643,000) | ​ | (4,389,000) | ​
Consolidated Liberty Broadband | ​ | $ | 82,753 | ​ | (4,981) | ​
​ Other Information ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2021 |
​ | ​ | Total | ​ | Investments | ​ | Capital |
​ | ​ | assets | ​ | in affiliates | ​ | expenditures |
​ | ​ | amounts in thousands |
GCI Holdings |  | $ | 3,507,595 |  | 391 |  | 28,605 | ​
Charter | ​ |  | 143,439,000 |  | — |  | 1,821,000 | ​
Corporate and other | ​ |  | 16,983,447 |  | 15,735,280 |  | 12 | ​
​ | ​ |  | 163,930,042 |  | 15,735,671 |  | 1,849,617 | ​
Eliminate equity method affiliate | ​ |  | (143,439,000) |  | — |  | (1,821,000) | ​
Consolidated Liberty Broadband | ​ | $ | 20,491,042 |  | 15,735,671 |  | 28,617 | ​
​ The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended |
​ | ​ | March 31, |
​ | ​ | 2021 | ​ | 2020 |
​ | ​ | ​ | amounts in thousands |
Adjusted OIBDA |  | $ | 82,753 |  | (4,981) | ​
Stock-based compensation | ​ |  | (9,870) | ​ | (1,801) | ​
Depreciation and amortization | ​ |  | (63,762) | ​ | (493) | ​
Litigation settlement | ​ | ​ | (110,000) | ​ | — | ​
Operating income (loss) | ​ | ​ | (100,879) | ​ | (7,275) | ​
Interest expense | ​ | ​ | (33,143) | ​ | (5,861) | ​
Share of earnings (loss) of affiliates, net | ​ |  | 188,979 | ​ | 61,682 | ​
Gain (loss) on dilution of investment in affiliate | ​ |  | (82,215) | ​ | (59,325) | ​
Realized and unrealized gains (losses) on financial instruments, net | ​ |  | 99,348 | ​ | — | ​
Other, net | ​ |  | (8,126) | ​ | 163 | ​
Earnings (loss) before income taxes | ​ | $ | 63,964 | ​ | (10,616) | ​
​

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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