Segment Reporting (Tables)
|
6 Months Ended |
Jun. 30, 2018 |
|---|
| Segment Reporting, Measurement Disclosures [Abstract] |
|
| Performance Measures of Our Reportable Segments |
| | | | | | | | | | | | | | | | | | Revenue | | Three months ended June 30, | | Six months ended
June 30, | | 2018 | | 2017 | | 2018 | | 2017 | | in millions | | | | | | | | | U.K./Ireland | $ | 1,734.9 |
| | $ | 1,566.1 |
| | $ | 3,513.1 |
| | $ | 3,070.5 |
| Belgium | 753.9 |
| | 686.0 |
| | 1,513.5 |
| | 1,347.4 |
| Switzerland | 332.2 |
| | 339.0 |
| | 677.1 |
| | 670.2 |
| Central and Eastern Europe | 152.9 |
| | 142.0 |
| | 313.4 |
| | 277.1 |
| Central and Corporate | 72.0 |
| | 42.7 |
| | 123.8 |
| | 83.5 |
| Intersegment eliminations | (0.8 | ) | | (0.9 | ) | | (1.3 | ) | | (4.0 | ) | Total | $ | 3,045.1 |
|
| $ | 2,774.9 |
|
| $ | 6,139.6 |
|
| $ | 5,444.7 |
| | | | | | | | | VodafoneZiggo JV | $ | 1,114.5 |
| | $ | 1,081.3 |
| | $ | 2,296.1 |
| | $ | 2,165.2 |
|
| | | | | | | | | | | | | | | | | | Adjusted OIBDA | | Three months ended June 30, | | Six months ended
June 30, | | 2018 | | 2017 | | 2018 | | 2017 | | in millions | | | | | | | | | U.K./Ireland | $ | 763.6 |
| | $ | 707.1 |
| | $ | 1,526.2 |
| | $ | 1,353.1 |
| Belgium | 383.7 |
| | 317.9 |
| | 741.3 |
| | 615.8 |
| Switzerland | 189.0 |
| | 212.9 |
| | 375.5 |
| | 417.7 |
| Central and Eastern Europe | 67.9 |
| | 64.6 |
| | 139.8 |
| | 123.1 |
| Central and Corporate | (83.6 | ) | | (98.7 | ) | | (182.7 | ) | | (191.7 | ) | Intersegment eliminations (a) | (10.8 | ) | | (8.4 | ) | | (18.5 | ) | | (16.2 | ) | Total | $ | 1,309.8 |
|
| $ | 1,195.4 |
|
| $ | 2,581.6 |
|
| $ | 2,301.8 |
| | | | | | | | | VodafoneZiggo JV | $ | 483.6 |
| | $ | 471.1 |
| | $ | 985.5 |
| | $ | 930.6 |
|
_______________
| | (a) | Amounts are related to transactions between our continuing and discontinued operations, which eliminations will no longer be recorded subsequent to the respective disposals of UPC Austria and the Vodafone Disposal Group. |
The following table provides a reconciliation of Adjusted OIBDA from continuing operations to earnings (loss) from continuing operations before income taxes: | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended
June 30, | | 2018 | | 2017 | | 2018 | | 2017 | | in millions | | | | | | | | | Adjusted OIBDA from continuing operations | $ | 1,309.8 |
| | $ | 1,195.4 |
| | $ | 2,581.6 |
| | $ | 2,301.8 |
| Share-based compensation expense | (45.5 | ) | | (51.4 | ) | | (88.2 | ) | | (80.3 | ) | Depreciation and amortization | (970.2 | ) | | (922.0 | ) | | (2,017.5 | ) | | (1,789.7 | ) | Impairment, restructuring and other operating items, net | (30.2 | ) | | (13.1 | ) | | (91.6 | ) | | (6.4 | ) | Operating income | 263.9 |
| | 208.9 |
| | 384.3 |
| | 425.4 |
| Interest expense | (381.1 | ) | | (348.8 | ) | | (757.0 | ) | | (688.3 | ) | Realized and unrealized gains (losses) on derivative instruments, net | 675.5 |
| | (351.7 | ) | | 464.2 |
| | (596.1 | ) | Foreign currency transaction gains (losses), net | 52.1 |
| | (18.2 | ) | | (49.6 | ) | | 11.0 |
| Realized and unrealized gains (losses) due to changes in fair values of certain investments and debt, net | 61.5 |
| | (141.4 | ) | | 4.3 |
| | (42.6 | ) | Losses on debt modification and extinguishment, net | (20.1 | ) | | (53.6 | ) | | (22.7 | ) | | (98.9 | ) | Share of losses of affiliates, net | (82.3 | ) | | (3.6 | ) | | (118.8 | ) | | (19.3 | ) | Other income, net | 6.4 |
| | 15.8 |
| | 16.2 |
| | 32.4 |
| Earnings (loss) from continuing operations before income taxes | $ | 575.9 |
| | $ | (692.6 | ) | | $ | (79.1 | ) | | $ | (976.4 | ) |
|
| Property and Equipment Additions of our Reportable Segments |
The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or capital lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our condensed consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing and capital lease arrangements, see note 8. | | | | | | | | | | Six months ended
June 30, | | 2018 | | 2017 | | in millions | | | | | U.K./Ireland | $ | 1,040.1 |
| | $ | 970.7 |
| Belgium | 355.2 |
| | 288.4 |
| Switzerland | 105.2 |
| | 96.5 |
| Central and Eastern Europe | 71.9 |
| | 117.0 |
| Central and Corporate (a) | 278.0 |
| | 159.1 |
| Total property and equipment additions | 1,850.4 |
| | 1,631.7 |
| Assets acquired under capital-related vendor financing arrangements | (1,187.9 | ) | | (1,164.1 | ) | Assets acquired under capital leases | (46.5 | ) | | (97.9 | ) | Changes in current liabilities related to capital expenditures | 181.8 |
| | 218.3 |
| Total capital expenditures, net | $ | 797.8 |
| | $ | 588.0 |
| | | | | Capital expenditures, net: | | | | Third-party payments | $ | 855.1 |
| | $ | 782.9 |
| Proceeds received for transfers to related parties (b) | (57.3 | ) | | (194.9 | ) | Total capital expenditures, net | $ | 797.8 |
| | $ | 588.0 |
| | | | | Property and equipment additions - VodafoneZiggo JV | $ | 476.6 |
| | $ | 444.5 |
|
_______________
| | (a) | Includes amounts that represent the net impact of changes in inventory levels associated with certain centrally-procured network equipment. 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.
|
| Revenue by Major Category |
Our revenue by major category for our consolidated reportable segments is set forth below. | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended
June 30, | | 2018 | | 2017 | | 2018 | | 2017 | | in millions | Residential revenue: | | | | | | | | Residential cable revenue (a): | | | | | | | | Subscription revenue (b): | | | | | | | | Video | $ | 743.5 |
| | $ | 717.3 |
| | $ | 1,518.1 |
| | $ | 1,406.2 |
| Broadband internet | 816.7 |
| | 724.8 |
| | 1,657.9 |
| | 1,430.7 |
| Fixed-line telephony | 407.7 |
| | 395.9 |
| | 829.7 |
| | 787.6 |
| Total subscription revenue | 1,967.9 |
| | 1,838.0 |
| | 4,005.7 |
| | 3,624.5 |
| Non-subscription revenue | 72.4 |
| | 76.9 |
| | 154.1 |
| | 157.8 |
| Total residential cable revenue | 2,040.3 |
| | 1,914.9 |
| | 4,159.8 |
| | 3,782.3 |
| Residential mobile revenue (c): | | | | | | | | Subscription revenue (b) | 249.6 |
| | 245.8 |
| | 493.4 |
| | 482.1 |
| Non-subscription revenue | 175.2 |
| | 134.3 |
| | 354.7 |
| | 260.9 |
| Total residential mobile revenue | 424.8 |
| | 380.1 |
| | 848.1 |
| | 743.0 |
| Total residential revenue | 2,465.1 |
| | 2,295.0 |
| | 5,007.9 |
| | 4,525.3 |
| B2B revenue (d): | | | | | | | | Subscription revenue | 102.9 |
| | 91.2 |
| | 219.6 |
| | 168.5 |
| Non-subscription revenue | 400.2 |
| | 337.9 |
| | 771.4 |
| | 652.7 |
| Total B2B revenue | 503.1 |
| | 429.1 |
| | 991.0 |
| | 821.2 |
| Other revenue (e) | 76.9 |
| | 50.8 |
| | 140.7 |
| | 98.2 |
| Total | $ | 3,045.1 |
| | $ | 2,774.9 |
| | $ | 6,139.6 |
| | $ | 5,444.7 |
|
_______________
| | (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 2018 periods include revenue earned from (i) sales of customer premises equipment to the VodafoneZiggo JV and (ii) services provided to Liberty Latin America. |
|
| Geographic Segments |
The revenue of our geographic segments is set forth below: | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended
June 30, | | 2018 | | 2017 | | 2018 | | 2017 | | in millions | | | | | | | | | U.K. | $ | 1,605.6 |
| | $ | 1,454.8 |
| | $ | 3,250.0 |
| | $ | 2,855.2 |
| Belgium | 753.9 |
| | 686.0 |
| | 1,513.5 |
| | 1,347.4 |
| Switzerland | 332.2 |
| | 339.0 |
| | 677.1 |
| | 670.2 |
| Ireland | 129.3 |
| | 111.3 |
| | 263.1 |
| | 215.3 |
| Poland | 110.4 |
| | 101.8 |
| | 226.4 |
| | 197.7 |
| Slovakia | 15.8 |
| | 14.6 |
| | 32.3 |
| | 28.9 |
| Other, including intersegment eliminations (a) | 97.9 |
| | 67.4 |
| | 177.2 |
| | 130.0 |
| Total | $ | 3,045.1 |
|
| $ | 2,774.9 |
|
| $ | 6,139.6 |
|
| $ | 5,444.7 |
| | | | | | | | | VodafoneZiggo JV (the Netherlands) | $ | 1,114.5 |
| | $ | 1,081.3 |
| | $ | 2,296.1 |
| | $ | 2,165.2 |
|
_______________
(a) Includes revenue from DTH services provided to customers in the Czech Republic, Hungary and Romania.
|