XML 104 R50.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting, Measurement Disclosures [Abstract]  
Revenue and Operating Cash Flow by Segment The noncontrolling owners’ interests in the operating results of Telenet and other less significant majority-owned subsidiaries are reflected in net earnings or loss attributable to noncontrolling interests in our consolidated statements of operations. Similarly, despite only holding a 50% noncontrolling interest in the VodafoneZiggo JV, we present 100% of its revenue and Adjusted OIBDA in the tables below. Our share of the VodafoneZiggo JV's operating results is included in share of results of affiliates, net, in our consolidated statements of operations.

 
Year ended December 31,
 
2019
 
2018
 
2017
 
Revenue
 
Adjusted OIBDA
 
Revenue
 
Adjusted OIBDA (b)
 
Revenue
 
Adjusted OIBDA (b)
 
in millions
 
 
 
 
 
 
 
 
 
 
 
 
U.K./Ireland
$
6,600.3

 
$
2,800.5

 
$
6,875.1

 
$
2,995.5

 
$
6,398.7

 
$
2,831.2

Belgium
2,893.0

 
1,386.1

 
2,993.6

 
1,480.0

 
2,865.3

 
1,300.3

Switzerland
1,258.8

 
627.9

 
1,326.0

 
712.0

 
1,370.1

 
800.3

Central and Eastern Europe
475.4

 
215.0

 
492.2

 
233.6

 
467.5

 
220.1

Central and Corporate
316.4

 
(171.1
)
 
274.2

 
(257.8
)
 
189.4

 
(317.3
)
Intersegment eliminations (a)
(2.4
)
 
1.1

 
(3.2
)
 
(11.8
)
 
(14.6
)
 
(9.5
)
Total
$
11,541.5

 
$
4,859.5

 
$
11,957.9

 
$
5,151.5

 
$
11,276.4

 
$
4,825.1

 
 
 
 
 
 
 
 
 
 
 
 
VodafoneZiggo JV
$
4,407.8

 
$
1,987.7

 
$
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.

(b)
Amounts have been revised to reflect the retrospective impact of the Centrally-held Cost Allocation, as described above.
Reconciliation of Total Segment Operating Cash Flow from Continuing Operations to Loss from Continuing Operations Before Income Taxes
The following table provides a reconciliation of Adjusted OIBDA from continuing operations to earnings (loss) from continuing operations before income taxes:
 
Year ended December 31,
 
2019
 
2018
 
2017
 
in millions
 
 
 
 
 
 
Adjusted OIBDA from continuing operations
$
4,859.5

 
$
5,151.5

 
$
4,825.1

Share-based compensation expense
(305.8
)
 
(206.0
)
 
(162.2
)
Depreciation and amortization
(3,652.2
)
 
(3,858.2
)
 
(3,790.6
)
Impairment, restructuring and other operating items, net
(156.0
)
 
(248.2
)
 
(79.9
)
Operating income
745.5

 
839.1

 
792.4

Interest expense
(1,385.9
)
 
(1,478.7
)
 
(1,416.1
)
Realized and unrealized gains (losses) on derivative instruments, net
(192.0
)
 
1,125.8

 
(1,052.8
)
Foreign currency transaction gains (losses), net
(94.8
)
 
90.4

 
(181.5
)
Realized and unrealized gains (losses) due to changes in fair values of certain investments and debt, net
72.0

 
(384.5
)
 
43.4

Losses on debt modification and extinguishment, net
(216.7
)
 
(65.0
)
 
(252.2
)
Share of results of affiliates, net
(198.5
)
 
(8.7
)
 
(95.2
)
Other income, net
114.4

 
43.4

 
50.9

Earnings (loss) from continuing operations before income taxes
$
(1,156.0
)
 
$
161.8

 
$
(2,111.1
)
Balance Sheet Data of Reportable Segments
Selected balance sheet data of our reportable segments is set forth below:
 
Long-lived assets
 
Total assets
 
December 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
 
in millions
U.K./Ireland
$
16,170.9

 
$
16,254.6

 
$
20,665.5

 
$
20,702.5

Belgium
5,910.3

 
5,979.4

 
7,148.2

 
6,972.1

Switzerland
4,247.7

 
4,165.4

 
4,647.8

 
4,496.0

Central and Eastern Europe
1,062.2

 
1,087.4

 
1,135.2

 
1,130.8

Central and Corporate
1,079.6

 
1,142.2

 
15,449.6

 
9,321.1

Total - continuing operations
$
28,470.7

 
$
28,629.0

 
$
49,046.3

 
$
42,622.5

 
 
 
 
 
 
 
 
VodafoneZiggo JV
$
20,674.8

 
$
22,026.2

 
$
22,426.5

 
$
23,255.3
Capital Expenditures of Reportable Segments
The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or finance lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing and finance lease arrangements, see notes 10 and 12, respectively.
 
Year ended December 31,
 
2019
 
2018
 
2017
 
in millions
 
 
 
 
 
 
U.K./Ireland
$
1,578.0

 
$
1,988.9

 
$
2,161.8

Belgium
537.2

 
790.8

 
691.0

Switzerland
277.9

 
249.6

 
244.4

Central and Eastern Europe
107.0

 
152.8

 
158.2

Central and Corporate (a)
380.4

 
523.5

 
448.1

Total property and equipment additions
2,880.5

 
3,705.6

 
3,703.5

Assets acquired under capital-related vendor financing arrangements
(1,727.0
)
 
(2,175.5
)
 
(2,336.2
)
Assets acquired under finance leases
(66.9
)
 
(102.4
)
 
(106.7
)
Changes in current liabilities related to capital expenditures
156.5

 
25.3

 
(10.6
)
Total capital expenditures, net
$
1,243.1

 
$
1,453.0

 
$
1,250.0

 
 
 
 
 
 
Capital expenditures, net:
 
 
 
 
 
Third-party payments
$
1,323.9

 
$
1,552.7

 
$
1,586.5

Proceeds received for transfers to related parties (b)
(80.8
)
 
(99.7
)
 
(336.5
)
Total capital expenditures, net
$
1,243.1

 
$
1,453.0

 
$
1,250.0

 
 
 
 
 
 
Property and equipment additions - VodafoneZiggo JV
$
887.9

 
$
988.7

 
$
933.9

_______________

(a)
Includes (i) property and equipment additions representing centrally-owned assets that benefit our operating segments and (ii) the net impact of certain centrally-procured network equipment that is ultimately transferred to our operating segments.

(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:
 
Year ended December 31,
 
2019
 
2018
 
2017
 
in millions
Residential revenue:
 
 
 
 
 
Residential cable revenue (a):
 
 
 
 
 
Subscription revenue (b):
 
 
 
 
 
Broadband internet
$
3,187.4

 
$
3,226.6

 
$
2,979.7

Video
2,723.9

 
2,863.2

 
2,786.5

Fixed-line telephony
1,413.2

 
1,607.8

 
1,599.8

Total subscription revenue
7,324.5

 
7,697.6

 
7,366.0

Non-subscription revenue
198.1

 
279.1

 
343.6

Total residential cable revenue
7,522.6

 
7,976.7

 
7,709.6

Residential mobile revenue (c):
 
 
 
 
 
Subscription revenue (b)
932.1

 
983.5

 
999.7

Non-subscription revenue
688.2

 
694.8

 
607.1

Total residential mobile revenue
1,620.3

 
1,678.3

 
1,606.8

Total residential revenue
9,142.9

 
9,655.0

 
9,316.4

B2B revenue (d):
 
 
 
 
 
Subscription revenue
472.5

 
446.4

 
367.6

Non-subscription revenue
1,441.5

 
1,537.1

 
1,372.5

Total B2B revenue
1,914.0

 
1,983.5

 
1,740.1

Other revenue (e)
484.6

 
319.4

 
219.9

Total
$
11,541.5

 
$
11,957.9

 
$
11,276.4

_______________

(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. 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 broadband internet, video, 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 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, (i) revenue earned from the JV Services and the sale of customer premises equipment to the VodafoneZiggo JV, (ii) revenue earned from transitional and other services provided to various third parties and (iii) broadcasting revenue in Ireland.
Revenue by Geographic Segments
The revenue of our geographic segments is set forth below:
 
Year ended December 31,
 
2019
 
2018
 
2017
 
in millions
 
 
 
 
 
 
U.K.
$
6,086.2

 
$
6,351.2

 
$
5,927.9

Belgium
2,893.0

 
2,993.6

 
2,865.3

Switzerland
1,258.8

 
1,326.0

 
1,370.1

Ireland
514.1

 
523.9

 
470.8

Poland
425.7

 
440.7

 
417.9

Slovakia
49.7

 
51.5

 
49.6

Other, including intersegment eliminations
314.0

 
271.0

 
174.8

Total
$
11,541.5

 
$
11,957.9

 
$
11,276.4

 
 
 
 
 
 
VodafoneZiggo JV (the Netherlands)
$
4,407.8

 
$
4,602.2

 
$
4,512.5
Long-Lived Assets by Geographic Segments
The long-lived assets of our geographic segments are set forth below:
 
December 31,
 
2019
 
2018
 
in millions
 
 
 
 
U.K.
$
15,422.4

 
$
15,489.2

Belgium
5,910.3

 
5,979.4

Switzerland
4,247.7

 
4,165.4

Poland
937.0

 
958.7

Ireland
748.5

 
765.4

Slovakia
125.2

 
128.7

U.S. and other (a)
1,079.6

 
1,142.2

Total
$
28,470.7

 
$
28,629.0

 
 
 
 
VodafoneZiggo JV (the Netherlands)
$
20,674.8

 
$
22,026.2

_______________ 

(a)
Primarily relates to certain long-lived assets included in Central and Corporate.