|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
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For the quarterly period ended March 31, 2014
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from to
|
England and Wales
|
|
98-1112770
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
38 Hans Crescent, London, England
|
|
SW1X 0LZ
|
(Address of principal executive offices)
|
|
(Zip Code)
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Page
Number
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PART I — FINANCIAL INFORMATION
|
|
ITEM 1.
|
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
|
||
|
||
|
||
|
||
|
||
|
||
ITEM 2.
|
||
ITEM 3.
|
||
ITEM 4.
|
||
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PART II — OTHER INFORMATION
|
|
ITEM 2.
|
||
ITEM 6.
|
|
March 31,
2014 |
|
December 31,
2013 |
||||
|
in millions
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,092.1
|
|
|
$
|
2,701.9
|
|
Trade receivables, net
|
1,529.2
|
|
|
1,588.7
|
|
||
Derivative instruments (note 4)
|
502.1
|
|
|
252.1
|
|
||
Deferred income taxes
|
270.0
|
|
|
226.1
|
|
||
Prepaid expenses
|
260.8
|
|
|
238.2
|
|
||
Current assets of discontinued operation (note 2)
|
—
|
|
|
238.7
|
|
||
Other current assets
|
245.5
|
|
|
236.9
|
|
||
Total current assets
|
5,899.7
|
|
|
5,482.6
|
|
||
Investments (including $3,422.3 million and $3,481.8 million, respectively, measured at fair value) (note 3)
|
3,438.4
|
|
|
3,491.2
|
|
||
Property and equipment, net (note 6)
|
23,813.8
|
|
|
23,974.9
|
|
||
Goodwill (note 6)
|
23,782.7
|
|
|
23,748.8
|
|
||
Intangible assets subject to amortization, net (note 6)
|
5,560.5
|
|
|
5,795.4
|
|
||
Long-term assets of discontinued operation (note 2)
|
—
|
|
|
513.6
|
|
||
Other assets, net (note 4)
|
4,765.2
|
|
|
4,707.8
|
|
||
Total assets
|
$
|
67,260.3
|
|
|
$
|
67,714.3
|
|
|
March 31,
2014 |
|
December 31,
2013 |
||||
|
in millions
|
||||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,104.5
|
|
|
$
|
1,072.9
|
|
Deferred revenue and advance payments from subscribers and others
|
1,559.0
|
|
|
1,406.2
|
|
||
Current portion of debt and capital lease obligations (note 7)
|
3,470.8
|
|
|
1,023.4
|
|
||
Derivative instruments (note 4)
|
1,237.6
|
|
|
751.2
|
|
||
Accrued interest
|
608.4
|
|
|
598.7
|
|
||
Accrued programming
|
369.1
|
|
|
359.1
|
|
||
Current liabilities of discontinued operation (note 2)
|
—
|
|
|
127.5
|
|
||
Other accrued and current liabilities
|
2,323.3
|
|
|
2,344.0
|
|
||
Total current liabilities
|
10,672.7
|
|
|
7,683.0
|
|
||
Long-term debt and capital lease obligations (note 7)
|
41,000.8
|
|
|
43,680.9
|
|
||
Long-term liabilities of discontinued operation (note 2)
|
—
|
|
|
19.8
|
|
||
Other long-term liabilities (note 4)
|
4,629.2
|
|
|
4,789.1
|
|
||
Total liabilities
|
56,302.7
|
|
|
56,172.8
|
|
||
Commitments and contingencies (notes 2, 4, 7, 8 and 13)
|
|
|
|
||||
Equity (note 9):
|
|
|
|
||||
Liberty Global shareholders:
|
|
|
|
||||
Class A ordinary shares, $0.01 nominal value. Issued and outstanding 219,696,185 and 222,081,117 shares, respectively
|
2.2
|
|
|
2.2
|
|
||
Class B ordinary shares, $0.01 nominal value. Issued and outstanding 10,144,184 and 10,147,184 shares, respectively
|
0.1
|
|
|
0.1
|
|
||
Class C ordinary shares, $0.01 nominal value. Issued and outstanding 561,131,684 and 556,221,669 shares, respectively
|
5.6
|
|
|
5.6
|
|
||
Additional paid-in capital
|
12,389.8
|
|
|
12,809.4
|
|
||
Accumulated deficit
|
(3,391.4
|
)
|
|
(3,312.6
|
)
|
||
Accumulated other comprehensive earnings, net of taxes
|
2,651.0
|
|
|
2,528.8
|
|
||
Treasury shares, at cost
|
(7.4
|
)
|
|
(7.7
|
)
|
||
Total Liberty Global shareholders
|
11,649.9
|
|
|
12,025.8
|
|
||
Noncontrolling interests (note 9)
|
(692.3
|
)
|
|
(484.3
|
)
|
||
Total equity
|
10,957.6
|
|
|
11,541.5
|
|
||
Total liabilities and equity
|
$
|
67,260.3
|
|
|
$
|
67,714.3
|
|
|
Three months ended
|
||||||
|
March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions, except share and per share amounts
|
||||||
|
|
|
|
||||
Revenue
|
$
|
4,533.7
|
|
|
$
|
2,671.9
|
|
Operating costs and expenses:
|
|
|
|
||||
Operating (other than depreciation and amortization) (including share-based compensation) (note 10)
|
1,698.8
|
|
|
966.8
|
|
||
Selling, general and administrative (SG&A) (including share-based compensation) (note 10)
|
762.5
|
|
|
471.4
|
|
||
Depreciation and amortization
|
1,377.1
|
|
|
684.6
|
|
||
Impairment, restructuring and other operating items, net (notes 2 and 6)
|
113.6
|
|
|
20.9
|
|
||
|
3,952.0
|
|
|
2,143.7
|
|
||
Operating income
|
581.7
|
|
|
528.2
|
|
||
Non-operating income (expense):
|
|
|
|
||||
Interest expense
|
(653.5
|
)
|
|
(471.5
|
)
|
||
Interest and dividend income
|
13.8
|
|
|
13.7
|
|
||
Realized and unrealized
gains (losses)
on derivative instruments, net (note 4)
|
(376.6
|
)
|
|
195.5
|
|
||
Foreign currency transaction
losses
, net
|
(20.8
|
)
|
|
(136.3
|
)
|
||
Realized and unrealized
gains (losses)
due to changes in fair values of certain investments, net (notes 3 and 5)
|
(60.2
|
)
|
|
70.8
|
|
||
Losses on debt modification and extinguishment, net (note 7)
|
(20.9
|
)
|
|
(158.3
|
)
|
||
Other expense, net
|
(0.5
|
)
|
|
(1.7
|
)
|
||
|
(1,118.7
|
)
|
|
(487.8
|
)
|
||
Earnings (loss)
from continuing operations before income taxes
|
(537.0
|
)
|
|
40.4
|
|
||
Income tax benefit (
expense)
(note 8)
|
117.0
|
|
|
(20.3
|
)
|
||
Earnings (loss)
from continuing operations
|
(420.0
|
)
|
|
20.1
|
|
||
Discontinued operation (note 2):
|
|
|
|
||||
Earnings
from discontinued operation, net of taxes
|
0.8
|
|
|
1.8
|
|
||
Gain on disposal of discontinued operation, net of taxes
|
339.9
|
|
|
—
|
|
||
|
340.7
|
|
|
1.8
|
|
||
Net
earnings (loss)
|
(79.3
|
)
|
|
21.9
|
|
||
Net loss (earnings)
attributable to noncontrolling interests
|
0.5
|
|
|
(22.9
|
)
|
||
Net loss attributable to Liberty Global shareholders
|
$
|
(78.8
|
)
|
|
$
|
(1.0
|
)
|
|
|
|
|
||||
Basic and diluted earnings (loss)
attributable to Liberty Global shareholders per share (note 12):
|
|
|
|
||||
Continuing operations
|
$
|
(0.53
|
)
|
|
$
|
(0.01
|
)
|
Discontinued operation
|
0.43
|
|
|
0.01
|
|
||
|
$
|
(0.10
|
)
|
|
$
|
—
|
|
|
|
|
|
||||
Weighted average ordinary shares outstanding — basic and diluted
|
787,737,909
|
|
|
513,805,800
|
|
|
Three months ended
|
||||||
|
March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Net earnings (loss)
|
$
|
(79.3
|
)
|
|
$
|
21.9
|
|
Other comprehensive earnings, net of taxes:
|
|
|
|
||||
Foreign currency translation adjustments
|
58.1
|
|
|
21.4
|
|
||
Reclassification adjustments included in net
earnings (loss) (note 2)
|
64.1
|
|
|
0.1
|
|
||
Other comprehensive earnings
|
122.2
|
|
|
21.5
|
|
||
Comprehensive
earnings
|
42.9
|
|
|
43.4
|
|
||
Comprehensive earnings attributable to noncontrolling interests
|
0.5
|
|
|
(29.5
|
)
|
||
Comprehensive
earnings
attributable to Liberty Global shareholders
|
$
|
43.4
|
|
|
$
|
13.9
|
|
|
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
|
|
|||||||||||||||||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance at January 1, 2014
|
$
|
2.2
|
|
|
$
|
0.1
|
|
|
$
|
5.6
|
|
|
$
|
12,809.4
|
|
|
$
|
(3,312.6
|
)
|
|
$
|
2,528.8
|
|
|
$
|
(7.7
|
)
|
|
$
|
12,025.8
|
|
|
$
|
(484.3
|
)
|
|
$
|
11,541.5
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(78.8
|
)
|
|
—
|
|
|
—
|
|
|
(78.8
|
)
|
|
(0.5
|
)
|
|
(79.3
|
)
|
||||||||||
Other comprehensive earnings, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
122.2
|
|
|
—
|
|
|
122.2
|
|
|
—
|
|
|
122.2
|
|
||||||||||
Repurchase and cancellation of Liberty Global ordinary shares (note 9)
|
—
|
|
|
—
|
|
|
—
|
|
|
(390.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(390.4
|
)
|
|
—
|
|
|
(390.4
|
)
|
||||||||||
Call option contracts on Liberty Global shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(222.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(222.9
|
)
|
|
—
|
|
|
(222.9
|
)
|
||||||||||
VTR NCI Acquisition (note 9)
|
—
|
|
|
—
|
|
|
0.1
|
|
|
185.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
185.4
|
|
|
(185.4
|
)
|
|
—
|
|
||||||||||
Share-based compensation (note 10)
|
—
|
|
|
—
|
|
|
—
|
|
|
46.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46.7
|
|
|
—
|
|
|
46.7
|
|
||||||||||
Adjustments due to changes in subsidiaries’ equity and other, net (note 9)
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(38.3
|
)
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
(38.1
|
)
|
|
(22.1
|
)
|
|
(60.2
|
)
|
||||||||||
Balance at March 31, 2014
|
$
|
2.2
|
|
|
$
|
0.1
|
|
|
$
|
5.6
|
|
|
$
|
12,389.8
|
|
|
$
|
(3,391.4
|
)
|
|
$
|
2,651.0
|
|
|
$
|
(7.4
|
)
|
|
$
|
11,649.9
|
|
|
$
|
(692.3
|
)
|
|
$
|
10,957.6
|
|
|
Three months ended
|
||||||
|
March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net
earnings (loss)
|
$
|
(79.3
|
)
|
|
$
|
21.9
|
|
Earnings
from discontinued operation
|
(340.7
|
)
|
|
(1.8
|
)
|
||
Earnings (loss)
from continuing operations
|
(420.0
|
)
|
|
20.1
|
|
||
Adjustments to reconcile
earnings (loss)
from continuing operations to net cash provided by operating activities:
|
|
|
|
||||
Share-based compensation expense
|
55.1
|
|
|
26.3
|
|
||
Depreciation and amortization
|
1,377.1
|
|
|
684.6
|
|
||
Impairment, restructuring and other operating items, net
|
113.6
|
|
|
20.9
|
|
||
Amortization of deferred financing costs and non-cash interest accretion
|
22.0
|
|
|
16.3
|
|
||
Realized and unrealized losses (gains) on derivative instruments, net
|
376.6
|
|
|
(195.5
|
)
|
||
Foreign currency transaction
losses
, net
|
20.8
|
|
|
136.3
|
|
||
Realized and unrealized losses (gains)
due to changes in fair values of certain investments, net
|
60.2
|
|
|
(70.8
|
)
|
||
Losses on debt modification and extinguishment, net
|
20.9
|
|
|
158.3
|
|
||
Deferred income tax benefit
|
(184.2
|
)
|
|
(36.8
|
)
|
||
Changes in operating assets and liabilities, net of the effects of acquisitions and dispositions
|
(121.7
|
)
|
|
(208.0
|
)
|
||
Net cash provided (used) by operating activities of discontinued operation
|
(9.6
|
)
|
|
6.0
|
|
||
Net cash provided by operating activities
|
1,310.8
|
|
|
557.7
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(735.0
|
)
|
|
(499.4
|
)
|
||
Proceeds received upon disposition of discontinued operation, net of disposal costs
|
993.0
|
|
|
—
|
|
||
Cash paid in connection with acquisitions, net of cash acquired
|
(23.2
|
)
|
|
—
|
|
||
Other investing activities, net
|
(3.1
|
)
|
|
5.6
|
|
||
Net cash used by investing activities of discontinued operation
|
(3.8
|
)
|
|
(4.6
|
)
|
||
Net cash provided (used) by investing activities
|
$
|
227.9
|
|
|
$
|
(498.4
|
)
|
|
Three months ended
|
||||||
|
March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
Cash flows from financing activities:
|
|
|
|
||||
Repayments and repurchases of debt and capital lease obligations
|
$
|
(2,051.6
|
)
|
|
$
|
(1,019.8
|
)
|
Borrowings of debt
|
1,547.8
|
|
|
1,103.9
|
|
||
Repurchase of Liberty Global and LGI shares
|
(376.8
|
)
|
|
(185.5
|
)
|
||
Net cash received (paid) associated with call option contracts on Liberty Global and LGI shares
|
(156.0
|
)
|
|
55.5
|
|
||
Net cash paid related to derivative instruments
|
(98.2
|
)
|
|
(11.1
|
)
|
||
Payment of financing costs and debt premiums
|
(39.1
|
)
|
|
(181.7
|
)
|
||
Decrease in restricted cash related to the Telenet Tender
|
—
|
|
|
1,539.7
|
|
||
Purchase of additional Telenet shares
|
—
|
|
|
(454.5
|
)
|
||
Other financing activities, net
|
11.6
|
|
|
(11.4
|
)
|
||
Net cash used by financing activities of discontinued operation
|
(1.2
|
)
|
|
(4.2
|
)
|
||
Net cash
provided (used)
by financing activities
|
(1,163.5
|
)
|
|
830.9
|
|
||
Effect of exchange rate changes on cash:
|
|
|
|
||||
Continuing operations
|
15.0
|
|
|
(21.5
|
)
|
||
Discontinued operation
|
—
|
|
|
(0.8
|
)
|
||
Total
|
15.0
|
|
|
(22.3
|
)
|
||
Net
increase
in cash and cash equivalents:
|
|
|
|
||||
Continuing operations
|
404.8
|
|
|
871.5
|
|
||
Discontinued operation
|
(14.6
|
)
|
|
(3.6
|
)
|
||
Net increase in cash and cash equivalents
|
390.2
|
|
|
867.9
|
|
||
Cash and cash equivalents:
|
|
|
|
||||
Beginning of period
|
2,701.9
|
|
|
2,038.9
|
|
||
End of period
|
$
|
3,092.1
|
|
|
$
|
2,906.8
|
|
|
|
|
|
||||
Cash paid for interest - continuing operations
|
$
|
631.1
|
|
|
$
|
467.6
|
|
Net cash
paid
for taxes:
|
|
|
|
||||
Continuing operations
|
$
|
32.5
|
|
|
$
|
16.9
|
|
Discontinued operation
|
0.9
|
|
|
3.6
|
|
||
Total
|
$
|
33.4
|
|
|
$
|
20.5
|
|
|
Three months ended
|
||
|
March 31, 2013
|
||
|
in millions, except per share amount
|
||
Revenue:
|
|
||
Continuing operations
|
$
|
4,269.9
|
|
Discontinued operation
|
95.8
|
|
|
Total
|
$
|
4,365.7
|
|
|
|
||
Net
loss
attributable to Liberty Global shareholders
|
$
|
(276.4
|
)
|
Basic and diluted loss attributable to Liberty Global shareholders per share
|
$
|
(0.34
|
)
|
|
Three months ended
March 31,
|
||||||
|
2014 (a)
|
|
2013
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Revenue
|
$
|
26.6
|
|
|
$
|
95.8
|
|
Operating income (loss)
|
$
|
0.6
|
|
|
$
|
(2.8
|
)
|
Earnings before income taxes and noncontrolling interests
|
$
|
0.9
|
|
|
$
|
1.9
|
|
Income tax expense
|
$
|
(0.1
|
)
|
|
$
|
(0.1
|
)
|
Earnings from discontinued operation attributable to Liberty Global shareholders, net of taxes
|
$
|
0.8
|
|
|
$
|
1.9
|
|
(a)
|
Includes the operating results of the
Chellomedia Disposal Group
through January 31, 2014, the date the
Chellomedia Disposal Group
was sold.
|
Accounting Method
|
|
March 31,
2014 |
|
December 31,
2013 |
||||
|
in millions
|
|||||||
Fair value:
|
|
|
|
|||||
Ziggo (a):
|
|
|
|
|||||
Not subject to re-use rights (38.4 million and 34.1 million shares, respectively)
|
$
|
1,707.6
|
|
|
$
|
1,560.1
|
|
|
Subject to re-use rights (18.6 million and 22.9 million shares, respectively)
|
824.2
|
|
|
1,049.4
|
|
|||
Total — Ziggo
|
2,531.8
|
|
|
2,609.5
|
|
|||
Sumitomo (b)
|
581.5
|
|
|
572.9
|
|
|||
Other (c)
|
309.0
|
|
|
299.4
|
|
|||
Total — fair value
|
3,422.3
|
|
|
3,481.8
|
|
|||
Equity
|
15.6
|
|
|
8.9
|
|
|||
Cost
|
0.5
|
|
|
0.5
|
|
|||
Total
|
$
|
3,438.4
|
|
|
$
|
3,491.2
|
|
(a)
|
At
March 31, 2014
, we owned
57,000,738
shares of
Ziggo
. Our
Ziggo
shares represented
28.5%
of the outstanding shares of
Ziggo
at
March 31, 2014
. At
March 31, 2014
,
19,965,600
of the
Ziggo
shares that we owned were (i) subject to a share collar (the
Ziggo Collar
) and (ii) pledged as collateral under a secured borrowing arrangement (the
Ziggo Collar Loan
) and are held in a custody account. Under the terms of the
Ziggo Collar
, the counterparty has the right to re-use most of the
Ziggo
shares held in the custody account (up to an estimated
18.6 million
shares at
March 31, 2014
), but we have the right to recall the shares that are re-used by the counterparty subject to certain costs. In addition, the counterparty retains dividends on the
Ziggo
shares that the counterparty would need to borrow from the custody account to hedge its exposure under the
Ziggo Collar
(an estimated
14.6 million
shares at
March 31, 2014
). The decline in the number of shares subject to re-use rights is primarily attributable to a partial settlement in January 2014 of the
Ziggo Collar
and
Ziggo Collar Loan
.
|
(b)
|
At
March 31, 2014
, we owned
45,652,043
shares of Sumitomo Corporation (
Sumitomo
) common stock. Our
Sumitomo
shares represented less than
5%
of
Sumitomo
’s outstanding common stock at
March 31, 2014
. These shares secure a loan (the
Sumitomo Collar Loan
) to
Liberty Programming Japan
LLC, our wholly-owned subsidiary.
|
(c)
|
Includes various fair value investments, the most significant of which is our
17.0%
interest in Canal+ Cyfrowy S.A., a privately-held direct-to-home (
DTH
) operator in Poland.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Current (a)
|
|
Long-term (a)
|
|
Total
|
|
Current (a)
|
|
Long-term (a)
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cross-currency and interest rate derivative contracts (b)
|
$
|
498.5
|
|
|
$
|
461.4
|
|
|
$
|
959.9
|
|
|
$
|
248.4
|
|
|
$
|
520.8
|
|
|
$
|
769.2
|
|
Equity-related derivative instruments (c)
|
—
|
|
|
439.4
|
|
|
439.4
|
|
|
—
|
|
|
430.4
|
|
|
430.4
|
|
||||||
Foreign currency forward contracts
|
3.1
|
|
|
—
|
|
|
3.1
|
|
|
2.6
|
|
|
—
|
|
|
2.6
|
|
||||||
Other
|
0.5
|
|
|
0.7
|
|
|
1.2
|
|
|
1.1
|
|
|
0.9
|
|
|
2.0
|
|
||||||
Total
|
$
|
502.1
|
|
|
$
|
901.5
|
|
|
$
|
1,403.6
|
|
|
$
|
252.1
|
|
|
$
|
952.1
|
|
|
$
|
1,204.2
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cross-currency and interest rate derivative contracts (b)
|
$
|
1,150.7
|
|
|
$
|
2,071.9
|
|
|
$
|
3,222.6
|
|
|
$
|
727.2
|
|
|
$
|
2,191.4
|
|
|
$
|
2,918.6
|
|
Equity-related derivative instruments (c)
|
83.2
|
|
|
—
|
|
|
83.2
|
|
|
15.6
|
|
|
101.3
|
|
|
116.9
|
|
||||||
Foreign currency forward contracts
|
3.5
|
|
|
16.1
|
|
|
19.6
|
|
|
8.2
|
|
|
12.0
|
|
|
20.2
|
|
||||||
Other
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
|
0.2
|
|
|
0.6
|
|
|
0.8
|
|
||||||
Total
|
$
|
1,237.6
|
|
|
$
|
2,088.2
|
|
|
$
|
3,325.8
|
|
|
$
|
751.2
|
|
|
$
|
2,305.3
|
|
|
$
|
3,056.5
|
|
(a)
|
Our long-term derivative assets and liabilities are included in other assets, net, and other long-term liabilities, respectively, in our condensed consolidated balance sheets.
|
(b)
|
We consider credit risk in our fair value assessments. As of
March 31, 2014
and
December 31, 2013
, (i) the fair values of our cross-currency and interest rate derivative contracts that represented assets have been reduced by credit risk valuation adjustments aggregating
$8.8 million
and
$9.8 million
, respectively, and (ii) the fair values of our cross-currency and interest rate derivative contracts that represented liabilities have been reduced by credit risk valuation adjustments aggregating
$142.6 million
and
$173.0 million
, respectively. The adjustments to our derivative assets relate to the credit risk associated
|
(c)
|
Our equity-related derivative instruments include the fair value of (i) the
Ziggo Collar
with respect to the
Ziggo
shares held by our company, (ii) the share collar (the
Sumitomo Collar
) with respect to the
Sumitomo
shares held by our company and (iii)
Virgin Media
’s conversion hedges with respect to the
VM Convertible Notes
, as defined and described in note
7
, (the
Virgin Media Capped Calls
). The fair values of the
Ziggo Collar
and the
Sumitomo Collar
do not include credit risk valuation adjustments as we have assumed 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 secured borrowing arrangements of the
Ziggo Collar
and
Sumitomo Collar
. For additional information regarding the
Ziggo Collar
, see note
3
.
|
|
Three months ended
|
||||||
|
March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Cross-currency and interest rate derivative contracts
|
$
|
(420.2
|
)
|
|
$
|
180.6
|
|
Equity-related derivative instruments:
|
|
|
|
|
|
||
Ziggo Collar
|
15.4
|
|
|
—
|
|
||
Sumitomo Collar
|
8.5
|
|
|
(87.7
|
)
|
||
Virgin Media Capped Calls
|
0.2
|
|
|
—
|
|
||
Total equity-related derivative instruments
|
24.1
|
|
|
(87.7
|
)
|
||
Foreign currency forward contracts
|
20.0
|
|
|
102.4
|
|
||
Other
|
(0.5
|
)
|
|
0.2
|
|
||
Total
|
$
|
(376.6
|
)
|
|
$
|
195.5
|
|
Subsidiary /
F
inal maturity date
|
|
Notional
amount
due from
counterparty
|
|
Notional
amount
due to
counterparty
|
|
Interest rate
due from
counterparty
|
|
Interest rate
due to
counterparty
|
||||
|
|
in millions
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Virgin Media Investment Holdings Limited (VMIH), a subsidiary of Virgin Media:
|
|
|
|
|
|
|
|
|
|
|||
February 2022
|
|
$
|
1,400.0
|
|
|
£
|
873.6
|
|
|
5.01%
|
|
5.49%
|
June 2020
|
|
$
|
1,384.6
|
|
|
£
|
901.4
|
|
|
6 mo. LIBOR + 2.75%
|
|
6 mo. GBP LIBOR + 3.18%
|
October 2020
|
|
$
|
1,370.4
|
|
|
£
|
881.6
|
|
|
6 mo. LIBOR + 2.75%
|
|
6 mo. GBP LIBOR + 3.10%
|
January 2018
|
|
$
|
1,000.0
|
|
|
£
|
615.7
|
|
|
6.50%
|
|
7.05%
|
January 2021
|
|
$
|
500.0
|
|
|
£
|
308.9
|
|
|
5.25%
|
|
6 mo. GBP LIBOR + 2.06%
|
October 2019
|
|
$
|
500.0
|
|
|
£
|
302.3
|
|
|
8.38%
|
|
9.07%
|
January 2022
|
|
$
|
425.0
|
|
|
£
|
255.8
|
|
|
5.50%
|
|
5.82%
|
April 2019
|
|
$
|
291.5
|
|
|
£
|
186.2
|
|
|
5.38%
|
|
5.49%
|
November 2016 (a)
|
|
$
|
55.0
|
|
|
£
|
27.7
|
|
|
6.50%
|
|
7.03%
|
UPC Holding:
|
|
|
|
|
|
|
|
|
|
|||
April 2016 (a)
|
|
$
|
400.0
|
|
|
CHF
|
441.8
|
|
|
9.88%
|
|
9.87%
|
UPC Broadband Holding BV (UPC Broadband Holding), a subsidiary of UPC Holding:
|
|
|
|
|
|
|
|
|
|
|||
July 2018
|
|
$
|
525.0
|
|
|
€
|
396.3
|
|
|
6 mo. LIBOR + 1.99%
|
|
6.25%
|
September 2014
|
|
$
|
440.0
|
|
|
€
|
316.3
|
|
|
6 mo. LIBOR
|
|
6 mo. EURIBOR - 0.04%
|
December 2014
|
|
$
|
340.0
|
|
|
€
|
244.6
|
|
|
6 mo. LIBOR
|
|
6 mo. EURIBOR
|
Subsidiary /
F
inal maturity date
|
|
Notional
amount
due from
counterparty
|
|
Notional
amount
due to
counterparty
|
|
Interest rate
due from
counterparty
|
|
Interest rate
due to
counterparty
|
||||
|
|
in millions
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
September 2014 - January 2020
|
|
$
|
327.5
|
|
|
€
|
249.5
|
|
|
6 mo. LIBOR + 4.92%
|
|
7.52%
|
January 2015 - July 2021
|
|
$
|
312.0
|
|
|
€
|
240.0
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. EURIBOR + 2.87%
|
January 2015
|
|
$
|
300.0
|
|
|
€
|
226.5
|
|
|
6 mo. LIBOR + 1.75%
|
|
5.78%
|
October 2020
|
|
$
|
300.0
|
|
|
€
|
219.1
|
|
|
6 mo. LIBOR + 3.00%
|
|
6 mo. EURIBOR + 3.04%
|
January 2017 - July 2021
|
|
$
|
262.1
|
|
|
€
|
194.1
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. EURIBOR + 2.51%
|
November 2019
|
|
$
|
250.0
|
|
|
€
|
181.5
|
|
|
7.25%
|
|
7.74%
|
November 2021
|
|
$
|
250.0
|
|
|
€
|
181.4
|
|
|
7.25%
|
|
7.50%
|
December 2014 - July 2018
|
|
$
|
200.0
|
|
|
€
|
151.0
|
|
|
6 mo. LIBOR + 3.00%
|
|
7.31%
|
January 2020
|
|
$
|
197.5
|
|
|
€
|
150.5
|
|
|
6 mo. LIBOR + 4.92%
|
|
6 mo. EURIBOR + 4.91%
|
September 2014 - July 2021
|
|
$
|
128.0
|
|
|
€
|
97.2
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. EURIBOR + 2.90%
|
January 2015 - July 2018
|
|
$
|
100.0
|
|
|
€
|
75.4
|
|
|
6 mo. LIBOR + 1.75%
|
|
5.77%
|
December 2016
|
|
$
|
340.0
|
|
|
CHF
|
370.9
|
|
|
6 mo. LIBOR + 3.50%
|
|
6 mo. CHF LIBOR + 4.01%
|
January 2017 - July 2021
|
|
$
|
300.0
|
|
|
CHF
|
278.3
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. CHF LIBOR + 2.46%
|
November 2019
|
|
$
|
250.0
|
|
|
CHF
|
226.8
|
|
|
7.25%
|
|
6 mo. CHF LIBOR + 5.01%
|
January 2020
|
|
$
|
225.0
|
|
|
CHF
|
206.3
|
|
|
6 mo. LIBOR + 4.81%
|
|
5.44%
|
January 2015 - July 2021
|
|
$
|
200.0
|
|
|
CHF
|
186.0
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. CHF LIBOR + 2.55%
|
January 2015
|
|
$
|
171.5
|
|
|
CHF
|
187.1
|
|
|
6 mo. LIBOR + 2.75%
|
|
6 mo. CHF LIBOR + 2.95%
|
December 2014
|
|
$
|
340.0
|
|
|
CLP
|
181,322.0
|
|
|
6 mo. LIBOR + 1.75%
|
|
8.76%
|
December 2016
|
|
$
|
201.5
|
|
|
RON
|
489.3
|
|
|
6 mo. LIBOR + 3.50%
|
|
14.01%
|
January 2015
|
|
€
|
898.4
|
|
|
CHF
|
1,466.0
|
|
|
6 mo. EURIBOR + 1.68%
|
|
6 mo. CHF LIBOR + 1.94%
|
January 2015 - September 2022
|
|
€
|
383.8
|
|
|
CHF
|
477.0
|
|
|
6 mo. EURIBOR + 2.00%
|
|
6 mo. CHF LIBOR + 2.22%
|
January 2015 - January 2017
|
|
€
|
360.4
|
|
|
CHF
|
589.0
|
|
|
6 mo. EURIBOR + 3.75%
|
|
6 mo. CHF LIBOR + 3.94%
|
January 2020
|
|
€
|
175.0
|
|
|
CHF
|
258.6
|
|
|
7.63%
|
|
6.76%
|
July 2020
|
|
€
|
107.4
|
|
|
CHF
|
129.0
|
|
|
6 mo. EURIBOR + 3.00%
|
|
6 mo. CHF LIBOR + 3.28%
|
January 2017
|
|
€
|
75.0
|
|
|
CHF
|
110.9
|
|
|
7.63%
|
|
6.98%
|
December 2014
|
|
€
|
134.2
|
|
|
CLP
|
107,800.0
|
|
|
6 mo. EURIBOR + 2.00%
|
|
10.00%
|
December 2015
|
|
€
|
69.1
|
|
|
CLP
|
53,000.0
|
|
|
3.50%
|
|
5.75%
|
January 2015
|
|
€
|
365.8
|
|
|
CZK
|
10,521.8
|
|
|
5.48%
|
|
5.99%
|
January 2015 - January 2017
|
|
€
|
60.0
|
|
|
CZK
|
1,703.1
|
|
|
5.50%
|
|
6.99%
|
July 2017
|
|
€
|
39.6
|
|
|
CZK
|
1,000.0
|
|
|
3.00%
|
|
3.75%
|
January 2015
|
|
€
|
260.0
|
|
|
HUF
|
75,570.0
|
|
|
5.50%
|
|
9.40%
|
January 2015 - January 2017
|
|
€
|
260.0
|
|
|
HUF
|
75,570.0
|
|
|
5.50%
|
|
10.56%
|
December 2016
|
|
€
|
150.0
|
|
|
HUF
|
43,367.5
|
|
|
5.50%
|
|
9.20%
|
Subsidiary /
F
inal maturity date
|
|
Notional
amount
due from
counterparty
|
|
Notional
amount
due to
counterparty
|
|
Interest rate
due from
counterparty
|
|
Interest rate
due to
counterparty
|
||||
|
|
in millions
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
July 2018
|
|
€
|
78.0
|
|
|
HUF
|
19,500.0
|
|
|
5.50%
|
|
9.15%
|
January 2015
|
|
€
|
400.5
|
|
|
PLN
|
1,605.6
|
|
|
5.50%
|
|
7.50%
|
January 2015 - January 2017
|
|
€
|
245.0
|
|
|
PLN
|
1,000.6
|
|
|
5.50%
|
|
9.03%
|
September 2016
|
|
€
|
200.0
|
|
|
PLN
|
892.7
|
|
|
6.00%
|
|
8.19%
|
July 2017
|
|
€
|
82.0
|
|
|
PLN
|
318.0
|
|
|
3.00%
|
|
5.60%
|
December 2014
|
|
CLP 181,322.0
|
|
|
USD
|
340.0
|
|
|
8.76%
|
|
6 mo. LIBOR + 1.75%
|
|
December 2014
|
|
CLP 107,800.0
|
|
|
EUR
|
134.2
|
|
|
10.00%
|
|
6 mo. EURIBOR + 2.00%
|
|
December 2015
|
|
CLP 53,000.0
|
|
|
EUR
|
69.1
|
|
|
5.75%
|
|
3.50%
|
|
Unitymedia Hessen GmbH & Co. KG, a subsidiary of Unitymedia KabelBW:
|
|
|
|
|
|
|
|
|
|
|
|
|
January 2021
|
|
$
|
1,000.0
|
|
|
€
|
688.2
|
|
|
5.50%
|
|
5.58%
|
March 2019
|
|
$
|
459.3
|
|
|
€
|
326.5
|
|
|
7.50%
|
|
7.98%
|
|
|
|
|
|
|
|
|
|
|
|||
VTR GlobalCom:
|
|
|
|
|
|
|
|
|
|
|||
January 2022
|
|
$
|
1,400.0
|
|
|
CLP
|
760,340.0
|
|
|
6.88%
|
|
10.94%
|
September 2014
|
|
$
|
134.9
|
|
|
CLP
|
74,639.5
|
|
|
6 mo. LIBOR + 3.00%
|
|
11.34%
|
September 2014
|
|
CLP 74,639.5
|
|
|
USD
|
134.9
|
|
|
11.34%
|
|
6 mo. LIBOR + 3.00%
|
(a)
|
Unlike the other cross-currency swaps presented in this table, the identified cross-currency swaps do not involve the exchange of notional amounts at the inception and maturity of the instruments. Accordingly, the only cash flows associated with these instruments are interest payments and receipts.
|
Subsidiary / Final maturity date
|
|
Notional amount
|
|
Interest rate due from
counterparty
|
|
Interest rate due to
counterparty
|
||
|
|
in millions
|
|
|
|
|
||
VMIH:
|
|
|
|
|
|
|
|
|
October 2018
|
|
£
|
2,155.0
|
|
|
6 mo. GBP LIBOR
|
|
1.52%
|
January 2021
|
|
£
|
650.0
|
|
|
5.50%
|
|
6 mo. GBP LIBOR + 1.84%
|
January 2021
|
|
£
|
650.0
|
|
|
6 mo. GBP LIBOR + 1.84%
|
|
3.87%
|
December 2015
|
|
£
|
600.0
|
|
|
6 mo. GBP LIBOR
|
|
2.86%
|
April 2018
|
|
£
|
300.0
|
|
|
6 mo. GBP LIBOR
|
|
1.37%
|
UPC Broadband Holding:
|
|
|
|
|
|
|
|
|
July 2020
|
|
$
|
1,000.0
|
|
|
6.63%
|
|
6 mo. LIBOR + 3.03%
|
January 2022
|
|
$
|
750.0
|
|
|
6.88%
|
|
6 mo. LIBOR + 4.89%
|
January 2015
|
|
€
|
1,554.0
|
|
|
1 mo. EURIBOR + 3.75%
|
|
6 mo. EURIBOR + 3.56%
|
Subsidiary / Final maturity date
|
|
Notional amount
|
|
Interest rate due from
counterparty
|
|
Interest rate due to
counterparty
|
||
|
|
in millions
|
|
|
|
|
||
January 2015
|
|
€
|
1,364.8
|
|
|
6 mo. EURIBOR
|
|
3.44%
|
July 2020
|
|
€
|
750.0
|
|
|
6.38%
|
|
6 mo. EURIBOR + 3.16%
|
January 2015 - January 2021
|
|
€
|
750.0
|
|
|
6 mo. EURIBOR
|
|
2.57%
|
January 2015 - December 2016
|
|
€
|
500.0
|
|
|
6 mo. EURIBOR
|
|
4.32%
|
July 2014
|
|
€
|
337.0
|
|
|
6 mo. EURIBOR
|
|
3.94%
|
January 2015 - January 2023
|
|
€
|
290.0
|
|
|
6 mo. EURIBOR
|
|
2.79%
|
December 2015
|
|
€
|
263.3
|
|
|
6 mo. EURIBOR
|
|
3.97%
|
January 2023
|
|
€
|
210.0
|
|
|
6 mo. EURIBOR
|
|
2.88%
|
January 2015 - January 2018
|
|
€
|
175.0
|
|
|
6 mo. EURIBOR
|
|
3.74%
|
January 2015 - July 2020
|
|
€
|
171.3
|
|
|
6 mo. EURIBOR
|
|
3.95%
|
July 2020
|
|
€
|
171.3
|
|
|
6 mo. EURIBOR
|
|
4.32%
|
December 2014
|
|
€
|
107.0
|
|
|
6 mo. EURIBOR
|
|
4.73%
|
January 2015 - November 2021
|
|
€
|
107.0
|
|
|
6 mo. EURIBOR
|
|
2.89%
|
January 2015
|
|
CHF
|
2,380.0
|
|
|
6 mo. CHF LIBOR
|
|
2.81%
|
January 2015 - January 2022
|
|
CHF
|
711.5
|
|
|
6 mo. CHF LIBOR
|
|
1.89%
|
January 2015 - January 2021
|
|
CHF
|
500.0
|
|
|
6 mo. CHF LIBOR
|
|
1.65%
|
January 2015 - January 2018
|
|
CHF
|
400.0
|
|
|
6 mo. CHF LIBOR
|
|
2.51%
|
January 2015 - December 2016
|
|
CHF
|
370.9
|
|
|
6 mo. CHF LIBOR
|
|
3.82%
|
January 2015 - November 2019
|
|
CHF
|
226.8
|
|
|
6 mo. CHF LIBOR + 5.01%
|
|
6.88%
|
Telenet International Finance S.a.r.l (Telenet International):
|
|
|
|
|
|
|
|
|
July 2017 - July 2019
|
|
€
|
600.0
|
|
|
3 mo. EURIBOR
|
|
3.29%
|
August 2015
|
|
€
|
350.0
|
|
|
3 mo. EURIBOR
|
|
3.54%
|
August 2015 - December 2018
|
|
€
|
305.0
|
|
|
3 mo. EURIBOR
|
|
2.46%
|
December 2015 - June 2021
|
|
€
|
250.0
|
|
|
3 mo. EURIBOR
|
|
3.49%
|
July 2019
|
|
€
|
200.0
|
|
|
3 mo. EURIBOR
|
|
3.55%
|
July 2017
|
|
€
|
150.0
|
|
|
3 mo. EURIBOR
|
|
3.55%
|
July 2017 - December 2018
|
|
€
|
70.0
|
|
|
3 mo. EURIBOR
|
|
3.00%
|
June 2021
|
|
€
|
55.0
|
|
|
3 mo. EURIBOR
|
|
2.29%
|
June 2015
|
|
€
|
50.0
|
|
|
3 mo. EURIBOR
|
|
3.55%
|
December 2017
|
|
€
|
50.0
|
|
|
3 mo. EURIBOR
|
|
3.52%
|
December 2015 - July 2019
|
|
€
|
50.0
|
|
|
3 mo. EURIBOR
|
|
3.40%
|
December 2017 - July 2019
|
|
€
|
50.0
|
|
|
3 mo. EURIBOR
|
|
2.99%
|
July 2017 - June 2021
|
|
€
|
50.0
|
|
|
3 mo. EURIBOR
|
|
3.00%
|
August 2015 - June 2021
|
|
€
|
45.0
|
|
|
3 mo. EURIBOR
|
|
3.20%
|
(a)
|
Our purchased interest rate caps entitle us to receive payments from the counterparty when
EURIBOR
exceeds the
EURIBOR
cap rate.
|
(b)
|
Our sold interest rate cap requires that we make payments to the counterparty when
EURIBOR
exceeds the
EURIBOR
cap rate.
|
|
|
March 31, 2014
|
||||||
Subsidiary / Final maturity date
|
|
Notional
amount
|
|
EURIBOR floor rate (a)
|
|
EURIBOR cap rate (b)
|
||
|
|
in millions
|
|
|
|
|
||
UPC Broadband Holding:
|
|
|
|
|
|
|
||
January 2015 - January 2020
|
€
|
1,135.0
|
|
|
1.00%
|
|
3.54%
|
|
Telenet International:
|
|
|
|
|
|
|
||
July 2017
|
€
|
950.0
|
|
|
2.00%
|
|
4.00%
|
(a)
|
We make payments to the counterparty when
EURIBOR
is less than the
EURIBOR
floor rate.
|
(b)
|
We receive payments from the counterparty when
EURIBOR
is greater than the
EURIBOR
cap rate.
|
|
|
Notional amount at
|
||
Contract expiration date
|
|
March 31, 2014
|
||
|
|
in millions
|
||
|
|
|
||
April 2018
|
$
|
419.8
|
|
|
October 2016
|
$
|
19.8
|
|
|
April 2017
|
$
|
19.8
|
|
|
October 2017
|
$
|
19.8
|
|
Subsidiary
|
|
Currency
purchased
forward
|
|
Currency
sold
forward
|
|
Maturity dates
|
||||
|
|
in millions
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||
LGE Financing
|
$
|
2.6
|
|
|
€
|
2.0
|
|
|
April 2014 - October 2014
|
|
LGE Financing
|
€
|
109.1
|
|
|
$
|
150.0
|
|
|
April 2014
|
|
UPC Holding
|
$
|
479.0
|
|
|
CHF
|
415.1
|
|
|
October 2016 - April 2018
|
|
UPC Broadband Holding
|
$
|
3.0
|
|
|
CZK
|
59.3
|
|
|
April 2014 - March 2015
|
|
UPC Broadband Holding
|
€
|
59.2
|
|
|
CHF
|
72.5
|
|
|
April 2014 - March 2015
|
|
UPC Broadband Holding
|
€
|
18.0
|
|
|
CZK
|
477.6
|
|
|
April 2014 - March 2015
|
|
UPC Broadband Holding
|
€
|
16.5
|
|
|
HUF
|
5,100.0
|
|
|
April 2014 - March 2015
|
|
UPC Broadband Holding
|
€
|
48.0
|
|
|
PLN
|
208.5
|
|
|
April 2014 - March 2015
|
|
UPC Broadband Holding
|
£
|
3.6
|
|
|
€
|
4.3
|
|
|
April 2014 - March 2015
|
|
UPC Broadband Holding
|
CHF
|
27.5
|
|
|
€
|
22.6
|
|
|
April 2014
|
|
UPC Broadband Holding
|
CZK
|
300.0
|
|
|
€
|
10.9
|
|
|
April 2014
|
|
UPC Broadband Holding
|
HUF
|
3,100.0
|
|
|
€
|
10.0
|
|
|
April 2014
|
|
UPC Broadband Holding
|
PLN
|
50.0
|
|
|
€
|
12.0
|
|
|
April 2014
|
|
UPC Broadband Holding
|
RON
|
16.0
|
|
|
€
|
3.6
|
|
|
April 2014
|
|
Telenet NV
|
$
|
36.0
|
|
|
€
|
26.6
|
|
|
April 2014 - December 2014
|
|
VTR GlobalCom
|
$
|
26.3
|
|
|
CLP
|
14,250.1
|
|
|
April 2014 - February 2015
|
|
|
|
Fair value measurements at March 31, 2014 using:
|
||||||||||||
Description
|
March 31,
2014 |
|
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
|
$
|
959.9
|
|
|
$
|
—
|
|
|
$
|
959.9
|
|
|
$
|
—
|
|
Equity-related derivative instruments
|
439.4
|
|
|
—
|
|
|
—
|
|
|
439.4
|
|
||||
Foreign currency forward contracts
|
3.1
|
|
|
—
|
|
|
3.1
|
|
|
—
|
|
||||
Other
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
||||
Total derivative instruments
|
1,403.6
|
|
|
—
|
|
|
964.2
|
|
|
439.4
|
|
||||
Investments
|
3,422.3
|
|
|
3,113.3
|
|
|
—
|
|
|
309.0
|
|
||||
Total assets
|
$
|
4,825.9
|
|
|
$
|
3,113.3
|
|
|
$
|
964.2
|
|
|
$
|
748.4
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities - derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Cross-currency and interest rate derivative contracts
|
$
|
3,222.6
|
|
|
$
|
—
|
|
|
$
|
3,222.6
|
|
|
$
|
—
|
|
Equity-related derivative instruments
|
83.2
|
|
|
—
|
|
|
—
|
|
|
83.2
|
|
||||
Foreign currency forward contracts
|
19.6
|
|
|
—
|
|
|
19.6
|
|
|
—
|
|
||||
Other
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
||||
Total liabilities
|
$
|
3,325.8
|
|
|
$
|
—
|
|
|
$
|
3,242.6
|
|
|
$
|
83.2
|
|
|
|
|
Fair value measurements at
December 31, 2013 using:
|
||||||||||||
Description
|
December 31, 2013
|
|
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
|
$
|
769.2
|
|
|
$
|
—
|
|
|
$
|
769.2
|
|
|
$
|
—
|
|
Equity-related derivative instruments
|
430.4
|
|
|
—
|
|
|
—
|
|
|
430.4
|
|
||||
Foreign currency forward contracts
|
2.6
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
||||
Other
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Total derivative instruments
|
1,204.2
|
|
|
—
|
|
|
773.8
|
|
|
430.4
|
|
||||
Investments
|
3,481.8
|
|
|
3,182.4
|
|
|
—
|
|
|
299.4
|
|
||||
Total assets
|
$
|
4,686.0
|
|
|
$
|
3,182.4
|
|
|
$
|
773.8
|
|
|
$
|
729.8
|
|
Liabilities - derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Cross-currency and interest rate derivative contracts
|
$
|
2,918.6
|
|
|
$
|
—
|
|
|
$
|
2,918.6
|
|
|
$
|
—
|
|
Equity-related derivative instruments
|
116.9
|
|
|
—
|
|
|
—
|
|
|
116.9
|
|
||||
Foreign currency forward contracts
|
20.2
|
|
|
—
|
|
|
20.2
|
|
|
—
|
|
||||
Other
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
||||
Total liabilities
|
$
|
3,056.5
|
|
|
$
|
—
|
|
|
$
|
2,939.6
|
|
|
$
|
116.9
|
|
|
Investments
|
|
Equity-related
derivative
instruments
|
|
Total
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Balance of net assets at January 1, 2014
|
$
|
299.4
|
|
|
$
|
313.5
|
|
|
$
|
612.9
|
|
Partial settlement of the Ziggo Collar (a)
|
—
|
|
|
17.9
|
|
|
17.9
|
|
|||
Gains included in net loss (b):
|
|
|
|
|
|
|
|||||
Realized and unrealized gains on derivative instruments, net
|
—
|
|
|
24.1
|
|
|
24.1
|
|
|||
Realized and unrealized gains due to changes in fair values of certain investments, net
|
8.9
|
|
|
—
|
|
|
8.9
|
|
|||
Foreign currency translation adjustments and other
|
0.7
|
|
|
0.7
|
|
|
1.4
|
|
|||
Balance of net assets at March 31, 2014
|
$
|
309.0
|
|
|
$
|
356.2
|
|
|
$
|
665.2
|
|
(a)
|
For additional information regarding the
Ziggo Collar
, see note
3
.
|
(b)
|
Most of these net gains relate to assets and liabilities that we continue to carry on our condensed consolidated balance sheet as of
March 31, 2014
.
|
|
March 31,
2014 |
|
December 31,
2013 |
||||
|
in millions
|
||||||
|
|
|
|
||||
Distribution systems
|
$
|
25,666.0
|
|
|
$
|
25,193.2
|
|
Customer premises equipment
|
6,350.4
|
|
|
6,126.0
|
|
||
Support equipment, buildings and land
|
3,662.1
|
|
|
3,581.9
|
|
||
|
35,678.5
|
|
|
34,901.1
|
|
||
Accumulated depreciation
|
(11,864.7
|
)
|
|
(10,926.2
|
)
|
||
Total property and equipment, net
|
$
|
23,813.8
|
|
|
$
|
23,974.9
|
|
|
January 1, 2014
|
|
Foreign
currency
translation
adjustments
|
|
March 31,
2014 |
||||||
|
in millions
|
||||||||||
European Operations Division
|
|
|
|
|
|
||||||
U.K. (Virgin Media)
|
$
|
9,598.2
|
|
|
$
|
66.4
|
|
|
$
|
9,664.6
|
|
Germany (Unitymedia KabelBW)
|
3,939.4
|
|
|
(4.7
|
)
|
|
3,934.7
|
|
|||
Belgium (Telenet)
|
2,255.1
|
|
|
(2.7
|
)
|
|
2,252.4
|
|
|||
The Netherlands
|
1,260.4
|
|
|
(1.5
|
)
|
|
1,258.9
|
|
|||
Switzerland
|
3,197.4
|
|
|
15.9
|
|
|
3,213.3
|
|
|||
Other Western Europe
|
1,079.7
|
|
|
(1.3
|
)
|
|
1,078.4
|
|
|||
Total Western Europe
|
21,330.2
|
|
|
72.1
|
|
|
21,402.3
|
|
|||
Central and Eastern Europe
|
1,520.1
|
|
|
(16.0
|
)
|
|
1,504.1
|
|
|||
Total European Operations Division
|
22,850.3
|
|
|
56.1
|
|
|
22,906.4
|
|
|||
Chile (VTR Group)
|
508.5
|
|
|
(22.2
|
)
|
|
486.3
|
|
|||
Corporate and other
|
390.0
|
|
|
—
|
|
|
390.0
|
|
|||
Total
|
$
|
23,748.8
|
|
|
$
|
33.9
|
|
|
$
|
23,782.7
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
||||||||||||
|
|
in millions
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer relationships
|
|
$
|
8,005.8
|
|
|
$
|
(2,577.3
|
)
|
|
$
|
5,428.5
|
|
|
$
|
8,116.7
|
|
|
$
|
(2,458.4
|
)
|
|
$
|
5,658.3
|
|
Other
|
|
266.0
|
|
|
(134.0
|
)
|
|
132.0
|
|
|
288.1
|
|
|
(151.0
|
)
|
|
137.1
|
|
||||||
Total
|
|
$
|
8,271.8
|
|
|
$
|
(2,711.3
|
)
|
|
$
|
5,560.5
|
|
|
$
|
8,404.8
|
|
|
$
|
(2,609.4
|
)
|
|
$
|
5,795.4
|
|
|
March 31, 2014
|
|
|
|
Carrying value (d)
|
|||||||||||||||||||||
Weighted
average
interest
rate (a)
|
|
Unused borrowing capacity (b)
|
|
Estimated fair value (c)
|
||||||||||||||||||||||
Borrowing currency
|
|
U.S. $
equivalent
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||
|
|
|
in millions
|
|||||||||||||||||||||||
Debt:
|
|
|
|
|||||||||||||||||||||||
VM Notes
|
6.26
|
%
|
|
—
|
|
|
$
|
—
|
|
|
$
|
10,926.8
|
|
|
$
|
9,188.7
|
|
|
$
|
10,692.6
|
|
|
$
|
9,150.1
|
|
|
VM Credit Facility
|
3.77
|
%
|
|
£
|
660.0
|
|
|
1,100.9
|
|
|
4,390.2
|
|
|
4,388.9
|
|
|
4,364.5
|
|
|
4,352.8
|
|
|||||
VM Convertible Notes (e)
|
6.50
|
%
|
|
—
|
|
|
—
|
|
|
157.5
|
|
|
164.1
|
|
|
57.4
|
|
|
57.5
|
|
||||||
UPCB SPE Notes
|
6.88
|
%
|
|
—
|
|
|
—
|
|
|
4,564.1
|
|
|
4,536.5
|
|
|
4,217.6
|
|
|
4,219.5
|
|
||||||
UPC Broadband Holding Bank Facility
|
3.71
|
%
|
|
€
|
1,046.2
|
|
|
1,440.8
|
|
|
3,479.8
|
|
|
5,717.8
|
|
|
3,438.0
|
|
|
5,671.4
|
|
|||||
UPC Holding Senior Notes (f)
|
7.51
|
%
|
|
—
|
|
|
—
|
|
|
3,402.2
|
|
|
3,297.4
|
|
|
3,099.3
|
|
|
3,099.2
|
|
||||||
Unitymedia KabelBW Notes
|
6.89
|
%
|
|
—
|
|
|
—
|
|
|
8,289.7
|
|
|
8,058.2
|
|
|
7,644.4
|
|
|
7,651.9
|
|
||||||
Unitymedia KabelBW Revolving Credit Facilities
|
3.33
|
%
|
|
€
|
417.5
|
|
|
575.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Telenet SPE Notes
|
5.94
|
%
|
|
—
|
|
|
—
|
|
|
2,959.5
|
|
|
2,916.5
|
|
|
2,755.7
|
|
|
2,759.2
|
|
||||||
Telenet Credit Facility
|
3.72
|
%
|
|
€
|
158.0
|
|
|
217.6
|
|
|
1,945.4
|
|
|
1,956.9
|
|
|
1,934.6
|
|
|
1,936.9
|
|
|||||
VTR Finance Senior Secured Notes
|
6.88
|
%
|
|
—
|
|
|
—
|
|
|
1,456.0
|
|
|
—
|
|
|
1,400.0
|
|
|
—
|
|
||||||
Sumitomo Collar Loan
|
1.88
|
%
|
|
—
|
|
|
—
|
|
|
957.5
|
|
|
939.3
|
|
|
913.2
|
|
|
894.3
|
|
||||||
Ziggo Collar Loan
|
0.45
|
%
|
|
—
|
|
|
—
|
|
|
682.3
|
|
|
852.9
|
|
|
682.1
|
|
|
852.6
|
|
||||||
Liberty Puerto Rico Bank Facility
|
6.89
|
%
|
|
$
|
21.0
|
|
|
21.0
|
|
|
660.5
|
|
|
666.2
|
|
|
657.6
|
|
|
665.0
|
|
|||||
Ziggo Margin Loan (g)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
634.3
|
|
|
—
|
|
|
634.3
|
|
||||||
Vendor financing (h)
|
3.74
|
%
|
|
—
|
|
|
—
|
|
|
575.8
|
|
|
603.1
|
|
|
575.8
|
|
|
603.1
|
|
||||||
Other (i)
|
8.91
|
%
|
|
(j)
|
|
200.0
|
|
|
196.9
|
|
|
308.2
|
|
|
196.9
|
|
|
308.2
|
|
|||||||
Total debt
|
5.75
|
%
|
|
|
|
$
|
3,555.3
|
|
|
$
|
44,644.2
|
|
|
$
|
44,229.0
|
|
|
42,629.7
|
|
|
42,856.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Capital lease obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Unitymedia KabelBW
|
|
943.9
|
|
|
952.0
|
|
||||||||||||||||||||
Telenet
|
|
462.9
|
|
|
451.2
|
|
||||||||||||||||||||
Virgin Media
|
|
360.2
|
|
|
373.5
|
|
||||||||||||||||||||
Other subsidiaries
|
|
74.9
|
|
|
71.6
|
|
||||||||||||||||||||
Total capital lease obligations
|
|
1,841.9
|
|
|
1,848.3
|
|
||||||||||||||||||||
Total debt and capital lease obligations
|
|
44,471.6
|
|
|
44,704.3
|
|
||||||||||||||||||||
Current maturities
|
|
(3,470.8
|
)
|
|
(1,023.4
|
)
|
||||||||||||||||||||
Long-term debt and capital lease obligations
|
|
$
|
41,000.8
|
|
|
$
|
43,680.9
|
|
(a)
|
Represents the weighted average interest rate in effect at
March 31, 2014
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 our interest rate derivative contracts, deferred financing costs, original issue premiums or discounts or commitment fees, all of which affect our overall cost of borrowing. Including the effects of derivative instruments, original issue premiums and discounts and commitment fees, but excluding the impact of financing costs, our weighted average interest rate on our aggregate variable- and fixed-rate indebtedness was
6.8%
at
March 31, 2014
. For information concerning our derivative instruments, see note
4
.
|
(b)
|
Unused borrowing capacity represents the maximum availability under the applicable facility at
March 31, 2014
without regard to covenant compliance calculations or other conditions precedent to borrowing. At
March 31, 2014
, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities based on the applicable leverage and other financial covenants, except as noted below. At
March 31, 2014
, (i) our availability under the
UPC Broadband Holding Bank Facility
(as defined and described below) was limited to
€776.0 million
(
$1,068.7 million
) and (ii) none of the unused borrowing capacity under
Virgin Media
’s
£660.0 million
(
$1,100.9 million
) senior secured revolving credit facility (the
VM Credit Facility
) was available to be borrowed. When the relevant
March 31, 2014
compliance reporting requirements have been completed and assuming no changes from
March 31, 2014
borrowing levels, we anticipate that our availability under the
UPC Broadband Holding Bank Facility
will be limited to
€744.3 million
(
$1,025.1 million
) and all of the unused borrowing capacity under the
VM Credit Facility
will continue to be unavailable. In addition to the limitations noted above, the debt instruments of our subsidiaries contain restricted payment tests that limit the amount that can be loaned or distributed to other
Liberty Global
subsidiaries and ultimately to
Liberty Global
. At
March 31, 2014
, these restrictions did not impact our ability to access the liquidity of our subsidiaries to satisfy our corporate liquidity needs beyond what is described above, except that the availability to be loaned or distributed by
Unitymedia KabelBW
was limited to
€367.4 million
(
$506.0 million
) and none of the liquidity of
Virgin Media
or
Liberty Puerto Rico
was available to be loaned or distributed. When the relevant
March 31, 2014
compliance reporting requirements have been completed and assuming no changes from
March 31, 2014
borrowing levels, we anticipate that the availability to be loaned or distributed by
Unitymedia KabelBW
will be unlimited and that all of the liquidity of
Virgin Media
or
Liberty Puerto Rico
will continue to be unavailable to be loaned or distributed. Upon completion of the relevant
March 31, 2014
compliance reporting requirements and the April 2014 redemption of the
2018 VM Sterling Senior Secured Notes
(as defined and described below), and assuming no other changes from
March 31, 2014
borrowing levels, we anticipate that
£655.7 million
(
$1,093.7 million
) of unused borrowing capacity under the
VM Credit Facility
will be available to be borrowed and that
£159.5 million
(
$266.1 million
) of this amount will be available to be loaned or distributed. For information concerning transactions completed subsequent to
March 31, 2014
that could have an impact on unused borrowing capacity, see below and note
15
.
|
(c)
|
The estimated fair values of our debt instruments were determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy). The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors. For additional information concerning fair value hierarchies, see note
5
.
|
(d)
|
Amounts include the impact of premiums and discounts, where applicable.
|
(e)
|
The
6.50%
convertible senior notes issued by
Virgin Media
(the
VM Convertible Notes
) are exchangeable under certain conditions for (subject to further adjustment as provided in the underlying indenture and subject to
Virgin Media
’s right to settle in cash or a combination of
Liberty Global
ordinary shares and cash)
13.4339
of our Class A ordinary shares,
33.4963
of our Class C ordinary shares and
$910.51
in cash (without interest) for each
$1,000
in principal amount of
VM Convertible Notes
exchanged. The amount reported in the estimated fair value column for the
VM Convertible Notes
represents the estimated fair value of the remaining
VM Convertible Notes
outstanding as of
March 31, 2014
, including both the debt and equity components.
|
(f)
|
During April 2014, we used existing cash to repay in full
UPC Holding
’s
$400.0 million
principal amount of
9.875%
senior notes due 2018 (the
UPC Holding 9.875% Senior Notes
).
|
(g)
|
During the first quarter of 2014, we used existing cash to repay the full amount of the limited recourse margin loan (the
Ziggo Margin Loan
) that was secured by a portion of our investment in
Ziggo
. In connection with this transaction, we recognized a loss on debt modification and extinguishment of
$2.3 million
related to the write-off of deferred financing costs. For information regarding our investment in
Ziggo
, see note
3
.
|
(h)
|
Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are generally due within
one year
. At
March 31, 2014
and
December 31, 2013
, the amounts owed pursuant to these arrangements include
$49.3 million
and
$47.3 million
, respectively, of
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 condensed consolidated statements of cash flows.
|
(i)
|
The
December 31, 2013
amounts include outstanding borrowings of
$113.1 million
under
VTR Wireless
’s then-existing CLP
60.0 billion
(
$109.2 million
) term loan bank facility (the
VTR Wireless Bank Facility
). In January 2014, all outstanding amounts under the
VTR Wireless Bank Facility
were repaid and the
VTR Wireless Bank Facility
was cancelled. In connection with this transaction, we recognized a loss on debt modification and extinguishment of
$2.0 million
related to the write-off of deferred financing costs.
|
(j)
|
Unused borrowing capacity relates to the senior secured revolving credit facility of entities within the VTR Group, which includes a
$160.0 million
U.S. dollar facility (the
VTR Dollar Senior Credit Facility
) and a CLP
22.0 billion
(
$40.0 million
) Chilean peso facility (the
VTR CLP Senior Credit Facility
), each of which were undrawn at March 31, 2014. The
VTR Dollar Senior Credit Facility
and the
VTR CLP Senior Credit Facility
have commitment fees on unused and uncancelled balances of 1.1% and 1.34% per year, respectively.
|
|
|
Redemption price
|
||
Year
|
|
2025 VM Senior Secured Notes
|
|
2029 VM Senior Secured Notes
|
|
|
|
|
|
2019
|
102.750%
|
|
N.A.
|
|
2020
|
101.833%
|
|
N.A.
|
|
2021
|
100.000%
|
|
103.125%
|
|
2022
|
100.000%
|
|
102.083%
|
|
2023
|
100.000%
|
|
101.042%
|
|
2024 and thereafter
|
100.000%
|
|
100.000%
|
Facility
|
|
Final maturity date
|
|
Interest rate
|
|
Facility amount
(in borrowing
currency) (a)
|
|
Unused
borrowing
capacity (b)
|
|
Carrying
value (c)
|
||||||
|
|
|
|
|
|
in millions
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Q
|
July 31, 2014
|
|
EURIBOR + 2.75%
|
|
€
|
30.0
|
|
|
$
|
41.3
|
|
|
$
|
—
|
|
|
V (d)
|
January 15, 2020
|
|
7.625%
|
|
€
|
500.0
|
|
|
—
|
|
|
688.6
|
|
|||
Y (d)
|
July 1, 2020
|
|
6.375%
|
|
€
|
750.0
|
|
|
—
|
|
|
1,032.9
|
|
|||
Z (d)
|
July 1, 2020
|
|
6.625%
|
|
$
|
1,000.0
|
|
|
—
|
|
|
1,000.0
|
|
|||
AC (d)
|
November 15, 2021
|
|
7.250%
|
|
$
|
750.0
|
|
|
—
|
|
|
750.0
|
|
|||
AD (d)
|
January 15, 2022
|
|
6.875%
|
|
$
|
750.0
|
|
|
—
|
|
|
750.0
|
|
|||
AG
|
March 31, 2021
|
|
EURIBOR + 3.75%
|
|
€
|
1,554.4
|
|
|
—
|
|
|
2,136.3
|
|
|||
AH
|
June 30, 2021
|
|
LIBOR + 2.50% (e)
|
|
$
|
1,305.0
|
|
|
—
|
|
|
1,301.7
|
|
|||
AI
|
April 30, 2019
|
|
EURIBOR + 3.25%
|
|
€
|
1,016.2
|
|
|
1,399.5
|
|
|
—
|
|
|||
Elimination of Facilities V, Y, Z, AC and AD in consolidation (d)
|
|
—
|
|
|
(4,221.5
|
)
|
||||||||||
Total
|
|
$
|
1,440.8
|
|
|
$
|
3,438.0
|
|
(a)
|
Except as described in (d) below, amounts represent total third-party facility amounts at
March 31, 2014
without giving effect to the impact of discounts.
|
(b)
|
At
March 31, 2014
, our availability under the
UPC Broadband Holding Bank Facility
was limited to
€776.0 million
(
$1,068.7 million
). When the relevant
March 31, 2014
compliance reporting requirements have been completed, we anticipate that our availability under the
UPC Broadband Holding Bank Facility
will be limited to
€744.3 million
(
$1,025.1 million
). Facilities Q and AI have commitment fees on unused and uncancelled balances of
0.75%
and
1.3%
per year, respectively.
|
(c)
|
The carrying values of Facilities AG and AH include the impact of discounts.
|
(d)
|
Amounts related to certain senior secured notes (the
UPCB SPE Notes
) issued by special purpose financing entities (the
UPCB SPE
s) that are consolidated by UPC Holding and
Liberty Global
. The proceeds from the
UPCB SPE Notes
were used to fund additional Facilities V, Y, Z, AC and AD, with our wholly-owned subsidiary UPC Financing Partnership as the borrower. Accordingly, the amounts outstanding under Facilities V, Y, Z, AC and AD are eliminated in our condensed consolidated financial statements.
|
(e)
|
Facility AH has a
LIBOR
floor of
0.75%
.
|
|
Virgin Media (a)
|
|
UPC
Holding (b)
|
|
Unitymedia KabelBW
|
|
Telenet (c)
|
|
Other (d)
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Year ending December 31:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2014 (remainder of year)
|
$
|
1,533.5
|
|
|
$
|
738.9
|
|
|
$
|
45.8
|
|
|
$
|
10.2
|
|
|
$
|
731.2
|
|
|
$
|
3,059.6
|
|
2015
|
—
|
|
|
100.4
|
|
|
31.0
|
|
|
10.2
|
|
|
9.8
|
|
|
151.4
|
|
||||||
2016
|
—
|
|
|
—
|
|
|
—
|
|
|
147.9
|
|
|
375.9
|
|
|
523.8
|
|
||||||
2017
|
—
|
|
|
—
|
|
|
—
|
|
|
603.8
|
|
|
860.2
|
|
|
1,464.0
|
|
||||||
2018
|
1,000.0
|
|
|
—
|
|
|
—
|
|
|
251.2
|
|
|
339.3
|
|
|
1,590.5
|
|
||||||
2019
|
1,555.5
|
|
|
—
|
|
|
2,387.6
|
|
|
1,123.2
|
|
|
—
|
|
|
5,066.3
|
|
||||||
Thereafter
|
10,838.5
|
|
|
10,390.9
|
|
|
5,259.8
|
|
|
2,722.7
|
|
|
1,400.0
|
|
|
30,611.9
|
|
||||||
Total debt maturities
|
14,927.5
|
|
|
11,230.2
|
|
|
7,724.2
|
|
|
4,869.2
|
|
|
3,716.4
|
|
|
42,467.5
|
|
||||||
Unamortized premium (discount)
|
206.1
|
|
|
(36.0
|
)
|
|
(3.0
|
)
|
|
1.2
|
|
|
(6.1
|
)
|
|
162.2
|
|
||||||
Total debt
|
$
|
15,133.6
|
|
|
$
|
11,194.2
|
|
|
$
|
7,721.2
|
|
|
$
|
4,870.4
|
|
|
$
|
3,710.3
|
|
|
$
|
42,629.7
|
|
Current portion
|
$
|
1,598.3
|
|
|
$
|
821.8
|
|
|
$
|
76.8
|
|
|
$
|
10.2
|
|
|
$
|
728.8
|
|
|
$
|
3,235.9
|
|
Noncurrent portion
|
$
|
13,535.3
|
|
|
$
|
10,372.4
|
|
|
$
|
7,644.4
|
|
|
$
|
4,860.2
|
|
|
$
|
2,981.5
|
|
|
$
|
39,393.8
|
|
(a)
|
The current portion includes the
$1,459.5 million
(equivalent) principal amount of the
2018 VM Sterling Senior Secured Notes
. In April 2014, the net proceeds from the
2025 VM Senior Secured Notes
and the
Original 2029 VM Senior Secured Notes
were used to redeem all of the
2018 VM Sterling Senior Secured Notes
, as further described above.
|
(b)
|
Amounts include the
UPCB SPE Notes
issued by the
UPCB SPE
s. As described above, the
UPCB SPE
s are consolidated by
UPC Holding
. In addition, the current portion includes the
$400.0 million
principal amount of the
UPC Holding 9.875% Senior Notes
that were repaid in full in April 2014.
|
(c)
|
Amounts include certain senior secured notes issued by special purpose financing entities that are consolidated by
Telenet
.
|
(d)
|
The current portion includes the
$689.1 million
(equivalent) principal amount outstanding under the
Ziggo Collar Loan
, which we expect to settle on or before the closing of the acquisition of
Ziggo
. The
Ziggo Collar Loan
may be settled with cash, shares or a combination thereof. For information regarding our pending acquisition of
Ziggo
, see note
2
.
|
|
Unitymedia KabelBW
|
|
Telenet
|
|
Virgin Media
|
|
Other
|
|
Total
|
||||||||||
|
in millions
|
||||||||||||||||||
Year ending December 31:
|
|
|
|
|
|
|
|
|
|
||||||||||
2014 (remainder of year)
|
$
|
75.9
|
|
|
$
|
59.9
|
|
|
$
|
123.5
|
|
|
$
|
19.4
|
|
|
$
|
278.7
|
|
2015
|
101.0
|
|
|
70.0
|
|
|
120.2
|
|
|
17.5
|
|
|
308.7
|
|
|||||
2016
|
101.0
|
|
|
68.8
|
|
|
67.8
|
|
|
17.7
|
|
|
255.3
|
|
|||||
2017
|
101.0
|
|
|
67.0
|
|
|
25.5
|
|
|
10.1
|
|
|
203.6
|
|
|||||
2018
|
101.0
|
|
|
63.3
|
|
|
5.0
|
|
|
4.4
|
|
|
173.7
|
|
|||||
2019
|
101.0
|
|
|
51.5
|
|
|
4.7
|
|
|
3.1
|
|
|
160.3
|
|
|||||
Thereafter
|
1,099.3
|
|
|
247.9
|
|
|
238.0
|
|
|
24.5
|
|
|
1,609.7
|
|
|||||
Total principal and interest payments
|
1,680.2
|
|
|
628.4
|
|
|
584.7
|
|
|
96.7
|
|
|
2,990.0
|
|
|||||
Amounts representing interest
|
(736.3
|
)
|
|
(165.5
|
)
|
|
(224.5
|
)
|
|
(21.8
|
)
|
|
(1,148.1
|
)
|
|||||
Present value of net minimum lease payments
|
$
|
943.9
|
|
|
$
|
462.9
|
|
|
$
|
360.2
|
|
|
$
|
74.9
|
|
|
$
|
1,841.9
|
|
Current portion
|
$
|
29.3
|
|
|
$
|
45.5
|
|
|
$
|
143.9
|
|
|
$
|
16.2
|
|
|
$
|
234.9
|
|
Noncurrent portion
|
$
|
914.6
|
|
|
$
|
417.4
|
|
|
$
|
216.3
|
|
|
$
|
58.7
|
|
|
$
|
1,607.0
|
|
|
|
Three months ended March 31,
|
||||||
|
|
2014
|
|
2013
|
||||
|
in millions
|
|||||||
|
|
|
|
|
||||
Computed “expected” tax benefit (expense) (a)
|
|
$
|
115.5
|
|
|
$
|
(14.1
|
)
|
International rate differences (b)
|
|
51.2
|
|
|
18.7
|
|
||
Change in valuation allowances
|
|
(50.3
|
)
|
|
(0.8
|
)
|
||
Tax effect of intercompany financing
|
|
40.5
|
|
|
—
|
|
||
Basis and other differences in the treatment of items associated with investments in subsidiaries and affiliates
|
|
(34.1
|
)
|
|
13.2
|
|
||
Non-deductible or non-taxable interest and other expenses
|
|
(31.0
|
)
|
|
(34.2
|
)
|
||
Recognition of previously unrecognized tax benefits
|
|
28.8
|
|
|
—
|
|
||
Other, net
|
|
(3.6
|
)
|
|
(3.1
|
)
|
||
Total income tax
benefit (expense)
|
|
$
|
117.0
|
|
|
$
|
(20.3
|
)
|
(a)
|
The statutory or “expected” tax rate is the
U.K.
rate of
21.5%
for the
three months ended March 31, 2014
and the
U.S.
rate of
35.0%
for the
three months ended March 31, 2013
. In July 2013, a law was enacted that decreased the U.K. corporate income tax rate to
21.0%
in April 2014, with a further decline to
20.0%
scheduled for April 2015. Substantially all of the impact of these rate changes on our deferred tax balances was recorded in the third quarter of 2013.
|
(b)
|
Amounts reflect statutory rates in jurisdictions in which we operate outside of the
U.K.
for the
three months ended March 31, 2014
and outside of the
U.S.
for the
three months ended March 31, 2013
.
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
Liberty Global shares:
|
|
|
|
||||
Performance-based incentive awards (a)
|
$
|
20.6
|
|
|
$
|
4.1
|
|
Other share-based incentive awards
|
30.2
|
|
|
11.2
|
|
||
Total Liberty Global shares (b)
|
50.8
|
|
|
15.3
|
|
||
Telenet share-based incentive awards (c)
|
2.9
|
|
|
11.0
|
|
||
Other
|
1.4
|
|
|
0.5
|
|
||
Total
|
$
|
55.1
|
|
|
$
|
26.8
|
|
Included in:
|
|
|
|
||||
Continuing operations:
|
|
|
|
||||
Operating expense
|
$
|
1.3
|
|
|
$
|
3.9
|
|
SG&A expense
|
53.8
|
|
|
22.4
|
|
||
Total - continuing operations
|
55.1
|
|
|
26.3
|
|
||
Discontinued operation
|
—
|
|
|
0.5
|
|
||
Total
|
$
|
55.1
|
|
|
$
|
26.8
|
|
(a)
|
Includes share-based compensation expense related to
Liberty Global
performance-based restricted share units (
PSU
s) and, for the
2014
period, the challenge performance award plan (the
Challenge Performance Awards
).
|
(b)
|
In connection with the
Virgin Media Acquisition
, we issued
Liberty Global
share-based incentive awards (
Virgin Media Replacement Awards
) to employees and former directors of
Virgin Media
in exchange for corresponding
Virgin Media
awards. During the
2014
period,
Virgin Media
recorded share-based compensation expense of
$19.3 million
, primarily related to the
Virgin Media Replacement Awards
.
|
(c)
|
The amount for the
2013
period includes
$6.4 million
related to the accelerated vesting of options granted under the Telenet 2010 specific stock option plan (
Telenet 2010 SSOP
).
|
|
Liberty Global
ordinary shares (a)
|
|
Liberty Global performance-based awards (b)
|
|
Telenet ordinary shares (c)
|
||||||
|
|
|
|
|
|
||||||
Total compensation expense not yet recognized (in millions)
|
$
|
110.5
|
|
|
$
|
141.3
|
|
|
$
|
8.7
|
|
Weighted average period remaining for expense recognition (in years)
|
2.2
|
|
|
2.0
|
|
|
2.5
|
|
(a)
|
Amounts relate to awards granted or assumed by
Liberty Global
under (i) the Liberty Global 2014 Incentive Plan, (ii) the Liberty Global, Inc. 2005 Incentive Plan (as amended and restated effective
June 7, 2013
) (the
Liberty Global Incentive Plan
), (iii) the Liberty Global, Inc. 2005 Nonemployee Director Incentive Plan (as amended and restated effective
June 7, 2013
) (the
Liberty Global Director Incentive Plan
), (iv) the Virgin Media Inc. 2010 Stock Incentive Plan (as amended and restated effective
June 7, 2013
) (the
VM Incentive Plan
) and (v) certain other incentive plans of Virgin Media pursuant to which awards may no longer be granted. 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 Incentive Plan
, the
Liberty Global Director Incentive Plan
or the
VM Incentive Plan
.
|
(b)
|
Amounts relate to (i) the
Challenge Performance Awards
, which include performance-based share appreciation rights (
PSAR
s) and restricted share units (
RSU
s) that were granted in June 2013, and (ii)
PSU
s.
|
(c)
|
Amounts relate to various equity incentive awards granted to employees of
Telenet
.
|
|
Three months ended
|
||||||
|
March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
|
|
|
||||
Weighted average grant-date fair value per PSU granted
|
$
|
41.02
|
|
|
(a)
|
||
Total intrinsic value of awards exercised (in millions):
|
|
|
|
||||
Options
|
$
|
26.0
|
|
|
$
|
5.7
|
|
SARs
|
$
|
9.4
|
|
|
$
|
15.0
|
|
Cash received from exercise of options (in millions)
|
$
|
14.0
|
|
|
$
|
1.2
|
|
Income tax benefit related to share-based compensation (in millions)
|
$
|
10.4
|
|
|
$
|
3.0
|
|
(a)
|
Not applicable as there were no
PSU
s granted during the
three months ended March 31, 2013
.
|
PSUs — Class A ordinary shares
|
Number of
shares
|
|
Weighted
average
grant-date
fair value
per share
|
|
Weighted
average
remaining
contractual
term
|
|||
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2014
|
924,648
|
|
|
$
|
32.05
|
|
|
|
Granted
|
272,464
|
|
|
$
|
41.61
|
|
|
|
Performance adjustment (a)
|
(138,668
|
)
|
|
$
|
26.17
|
|
|
|
Forfeited
|
(12,844
|
)
|
|
$
|
30.96
|
|
|
|
Released from restrictions
|
(137,126
|
)
|
|
$
|
26.21
|
|
|
|
Outstanding at March 31, 2014
|
908,474
|
|
|
$
|
36.71
|
|
|
1.7
|
PSUs — Class C ordinary shares
|
Number of
shares
|
|
Weighted
average
grant-date
fair value
per share
|
|
Weighted
average
remaining
contractual
term
|
|||
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2014
|
2,744,452
|
|
|
$
|
29.99
|
|
|
|
Granted
|
546,016
|
|
|
$
|
40.72
|
|
|
|
Performance adjustment (a)
|
(416,004
|
)
|
|
$
|
24.73
|
|
|
|
Forfeited
|
(38,532
|
)
|
|
$
|
29.03
|
|
|
|
Released from restrictions
|
(411,378
|
)
|
|
$
|
24.76
|
|
|
|
Outstanding at March 31, 2014
|
2,424,554
|
|
|
$
|
34.21
|
|
|
1.7
|
(a)
|
Represents the reduction in
PSU
s associated with the first quarter
2014
determination that
66.3%
of the
PSU
s that were granted in
2012
(the
2012 PSU
s) had been earned. Half of the earned
2012 PSU
s were released from restrictions on March 31, 2014 and, subject to forfeitures, the remainder will be released from restrictions on September 30, 2014.
|
|
|
Employee
severance
and
termination
|
|
Office
closures
|
|
Contract termination and other
|
|
Total
|
||||||||
|
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Restructuring liability as of January 1, 2014
|
|
$
|
26.6
|
|
|
$
|
14.9
|
|
|
$
|
72.0
|
|
|
$
|
113.5
|
|
Restructuring charges
|
|
12.0
|
|
|
0.5
|
|
|
87.1
|
|
|
99.6
|
|
||||
Cash paid
|
|
(18.4
|
)
|
|
(5.7
|
)
|
|
(6.0
|
)
|
|
(30.1
|
)
|
||||
Foreign currency translation adjustments and other
|
|
(0.1
|
)
|
|
—
|
|
|
(3.3
|
)
|
|
(3.4
|
)
|
||||
Restructuring liability as of March 31, 2014
|
|
$
|
20.1
|
|
|
$
|
9.7
|
|
|
$
|
149.8
|
|
|
$
|
179.6
|
|
|
|
|
|
|
|
|
|
|
||||||||
Current portion
|
|
$
|
20.0
|
|
|
$
|
8.1
|
|
|
$
|
33.3
|
|
|
$
|
61.4
|
|
Noncurrent portion
|
|
0.1
|
|
|
1.6
|
|
|
116.5
|
|
|
118.2
|
|
||||
Total
|
|
$
|
20.1
|
|
|
$
|
9.7
|
|
|
$
|
149.8
|
|
|
$
|
179.6
|
|
|
Three months ended
|
||||||
|
March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
Amounts attributable to Liberty Global shareholders:
|
|
|
|
||||
Loss from continuing operations
|
$
|
(419.5
|
)
|
|
$
|
(2.9
|
)
|
Earnings from discontinued operation
|
340.7
|
|
|
1.9
|
|
||
Net loss attributable to Liberty Global shareholders
|
$
|
(78.8
|
)
|
|
$
|
(1.0
|
)
|
|
Payments due during:
|
|
|
||||||||||||||||||||||||||||
|
Remainder
of
2014
|
|
Year ending December 31,
|
|
|
|
|
||||||||||||||||||||||||
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
|
Total
|
||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Network and connectivity commitments
|
$
|
285.7
|
|
|
$
|
332.3
|
|
|
$
|
274.8
|
|
|
$
|
255.0
|
|
|
$
|
133.5
|
|
|
$
|
99.4
|
|
|
$
|
1,187.6
|
|
|
$
|
2,568.3
|
|
Programming commitments
|
401.7
|
|
|
418.6
|
|
|
298.8
|
|
|
145.0
|
|
|
38.4
|
|
|
0.4
|
|
|
—
|
|
|
1,302.9
|
|
||||||||
Purchase commitments
|
754.3
|
|
|
156.7
|
|
|
67.7
|
|
|
11.4
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
|
993.9
|
|
||||||||
Operating leases
|
138.0
|
|
|
154.7
|
|
|
128.4
|
|
|
103.1
|
|
|
67.9
|
|
|
55.9
|
|
|
270.2
|
|
|
918.2
|
|
||||||||
Other commitments
|
335.3
|
|
|
275.9
|
|
|
186.6
|
|
|
139.2
|
|
|
82.8
|
|
|
31.7
|
|
|
38.4
|
|
|
1,089.9
|
|
||||||||
Total (a)
|
$
|
1,915.0
|
|
|
$
|
1,338.2
|
|
|
$
|
956.3
|
|
|
$
|
653.7
|
|
|
$
|
326.4
|
|
|
$
|
187.4
|
|
|
$
|
1,496.2
|
|
|
$
|
6,873.2
|
|
(a)
|
The commitments reflected in this table do not reflect any liabilities that are included in our
March 31, 2014
condensed consolidated balance sheet.
|
•
|
European Operations Division
:
|
•
|
U.K.
(
Virgin Media
)
|
•
|
Germany (
Unitymedia KabelBW
)
|
•
|
Belgium (
Telenet
)
|
•
|
The Netherlands
|
•
|
Switzerland
|
•
|
Other Western Europe
|
•
|
Central and Eastern Europe
|
•
|
Chile (
VTR Group
)
|
|
Revenue
|
||||||
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
European Operations Division:
|
|
|
|
||||
U.K. (Virgin Media)
|
$
|
1,727.9
|
|
|
$
|
—
|
|
Germany (Unitymedia KabelBW)
|
695.9
|
|
|
618.2
|
|
||
Belgium (Telenet)
|
574.2
|
|
|
536.2
|
|
||
The Netherlands
|
318.1
|
|
|
314.8
|
|
||
Switzerland
|
352.8
|
|
|
326.0
|
|
||
Other Western Europe
|
230.6
|
|
|
222.6
|
|
||
Total Western Europe
|
3,899.5
|
|
|
2,017.8
|
|
||
Central and Eastern Europe
|
289.2
|
|
|
287.8
|
|
||
Central and other
|
33.9
|
|
|
31.8
|
|
||
Total European Operations Division
|
4,222.6
|
|
|
2,337.4
|
|
||
Chile (VTR Group)
|
225.3
|
|
|
250.4
|
|
||
Corporate and other
|
93.1
|
|
|
93.0
|
|
||
Intersegment eliminations (a)
|
(7.3
|
)
|
|
(8.9
|
)
|
||
Total
|
$
|
4,533.7
|
|
|
$
|
2,671.9
|
|
(a)
|
Amounts are primarily related to transactions between our
European Operations Division
and our continuing programming operations.
|
|
Operating cash flow
|
||||||
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
European Operations Division:
|
|
|
|
||||
U.K. (Virgin Media)
|
$
|
736.5
|
|
|
$
|
—
|
|
Germany (Unitymedia KabelBW)
|
429.0
|
|
|
360.0
|
|
||
Belgium (Telenet)
|
302.1
|
|
|
247.5
|
|
||
The Netherlands
|
183.3
|
|
|
184.8
|
|
||
Switzerland
|
206.4
|
|
|
182.2
|
|
||
Other Western Europe
|
113.1
|
|
|
104.8
|
|
||
Total Western Europe
|
1,970.4
|
|
|
1,079.3
|
|
||
Central and Eastern Europe
|
147.0
|
|
|
140.6
|
|
||
Central and other
|
(59.7
|
)
|
|
(45.8
|
)
|
||
Total European Operations Division
|
2,057.7
|
|
|
1,174.1
|
|
||
Chile (VTR Group)
|
82.7
|
|
|
85.2
|
|
||
Corporate and other
|
(16.9
|
)
|
|
(10.6
|
)
|
||
Intersegment eliminations (a)
|
4.0
|
|
|
11.3
|
|
||
Total
|
$
|
2,127.5
|
|
|
$
|
1,260.0
|
|
(a)
|
Amounts are primarily related to transactions between our
European Operations Division
and the
Chellomedia Disposal Group
, which eliminations are no longer recorded following the completion of the
Chellomedia Transaction
on January 31, 2014.
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Total segment operating cash flow from continuing operations
|
$
|
2,127.5
|
|
|
$
|
1,260.0
|
|
Share-based compensation expense
|
(55.1
|
)
|
|
(26.3
|
)
|
||
Depreciation and amortization
|
(1,377.1
|
)
|
|
(684.6
|
)
|
||
Impairment, restructuring and other operating items, net
|
(113.6
|
)
|
|
(20.9
|
)
|
||
Operating income
|
581.7
|
|
|
528.2
|
|
||
Interest expense
|
(653.5
|
)
|
|
(471.5
|
)
|
||
Interest and dividend income
|
13.8
|
|
|
13.7
|
|
||
Realized and unrealized gains (losses) on derivative instruments, net
|
(376.6
|
)
|
|
195.5
|
|
||
Foreign currency transaction losses, net
|
(20.8
|
)
|
|
(136.3
|
)
|
||
Realized and unrealized gains (losses) due to changes in fair values of certain investments, net
|
(60.2
|
)
|
|
70.8
|
|
||
Losses on debt modification and extinguishment, net
|
(20.9
|
)
|
|
(158.3
|
)
|
||
Other expense, net
|
(0.5
|
)
|
|
(1.7
|
)
|
||
Earnings (loss) from continuing operations before income taxes
|
$
|
(537.0
|
)
|
|
$
|
40.4
|
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
Subscription revenue (a):
|
|
|
|
||||
Video
|
$
|
1,640.5
|
|
|
$
|
1,212.7
|
|
Broadband internet (b)
|
1,141.7
|
|
|
659.3
|
|
||
Fixed-line telephony (b)
|
823.1
|
|
|
409.4
|
|
||
Cable subscription revenue
|
3,605.3
|
|
|
2,281.4
|
|
||
Mobile subscription revenue (c)
|
257.3
|
|
|
62.1
|
|
||
Total subscription revenue
|
3,862.6
|
|
|
2,343.5
|
|
||
B2B revenue (d)
|
372.5
|
|
|
117.3
|
|
||
Other revenue (b) (c) (e)
|
298.6
|
|
|
211.1
|
|
||
Total revenue
|
$
|
4,533.7
|
|
|
$
|
2,671.9
|
|
(a)
|
Subscription revenue includes amounts received from subscribers for ongoing services, excluding installation fees and late fees. 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.
|
(b)
|
In connection with the
Virgin Media Acquisition
, we determined that we would no longer externally report digital subscriber line (
DSL
) subscribers as revenue generating units (
RGU
s). Accordingly, for the
three months ended March 31, 2013
, we have reclassified the revenue from our
DSL
subscribers in Austria from broadband internet and fixed-line telephony subscription revenue to other revenue.
|
(c)
|
Mobile subscription revenue excludes
$60.8 million
and
$23.2 million
, respectively, of mobile interconnect revenue. Mobile interconnect revenue and revenue from mobile handset sales are included in other revenue.
|
(d)
|
These amounts include
B2B
revenue from business broadband internet, video, voice, wireless and data services offered to medium to large enterprises and, on a wholesale basis, to other operators. We also provide services to certain small office and home office (
SOHO
) subscribers.
SOHO
subscribers pay a premium price to receive enhanced service levels along with video, broadband internet or fixed-line telephony services that are the same or similar to the mass marketed products offered to our residential subscribers. Revenue from
SOHO
subscribers, which aggregated
$46.5 million
and
$32.8 million
, respectively, is included in cable subscription revenue.
|
(e)
|
Other revenue includes, among other items, interconnect, carriage fee and installation revenue.
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
European Operations Division:
|
|
|
|
||||
U.K.
|
$
|
1,727.9
|
|
|
$
|
—
|
|
Germany
|
695.9
|
|
|
618.2
|
|
||
Belgium
|
574.2
|
|
|
536.2
|
|
||
Switzerland
|
352.8
|
|
|
326.0
|
|
||
The Netherlands
|
318.1
|
|
|
314.8
|
|
||
Poland
|
120.5
|
|
|
116.5
|
|
||
Ireland
|
119.6
|
|
|
114.4
|
|
||
Austria
|
111.0
|
|
|
108.2
|
|
||
Hungary
|
64.0
|
|
|
63.4
|
|
||
The Czech Republic
|
51.5
|
|
|
57.5
|
|
||
Romania
|
36.9
|
|
|
34.6
|
|
||
Slovakia
|
16.3
|
|
|
15.8
|
|
||
Other (a)
|
33.9
|
|
|
31.8
|
|
||
Total European Operations Division
|
4,222.6
|
|
|
2,337.4
|
|
||
Chile
|
225.3
|
|
|
250.4
|
|
||
Puerto Rico
|
74.7
|
|
|
73.2
|
|
||
Other, including intersegment eliminations
|
11.1
|
|
|
10.9
|
|
||
Total
|
$
|
4,533.7
|
|
|
$
|
2,671.9
|
|
(a)
|
Primarily represents revenue of
UPC DTH
from customers located in the Czech Republic, Hungary, Romania and Slovakia.
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Forward-Looking Statements.
This section provides a description of certain factors that could cause actual results or events to differ materially from anticipated results or events.
|
•
|
Overview.
This section provides a general description of our business and recent events.
|
•
|
Material Changes in Results of Operations.
This section provides an analysis of our results of operations for the
three
months ended
March 31, 2014
and
2013
.
|
•
|
Material Changes in Financial Condition.
This section provides an analysis of our corporate and subsidiary liquidity, condensed consolidated statements of cash flows and contractual commitments.
|
•
|
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.
|
•
|
economic and business conditions and industry trends in the countries in which we operate;
|
•
|
the competitive environment in the industries in the countries in which we 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 digital video, 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 digital video, 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;
|
•
|
our ability to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers;
|
•
|
our ability to maintain our revenue from channel carriage arrangements, particularly in Germany;
|
•
|
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 operate and adverse outcomes from regulatory proceedings;
|
•
|
government intervention that opens our broadband distribution networks to competitors, such as the obligations imposed in Belgium;
|
•
|
our ability to obtain regulatory approval and satisfy other conditions necessary to close acquisitions, including the pending acquisition of
Ziggo
, and dispositions, and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions, including the impact of the present and any future conditions imposed in connection with the acquisition of
KBW
on our operations in Germany;
|
•
|
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 or may acquire, such as the
Virgin Media Acquisition
and the pending acquisition of
Ziggo
;
|
•
|
changes in laws or treaties relating to taxation, or the interpretation thereof, in the
U.S.
or in countries in which we operate;
|
•
|
changes in laws and government regulations that may impact the availability and cost of credit and the derivative instruments that hedge certain of our financial risks;
|
•
|
the ability of suppliers and vendors to timely deliver quality products, equipment, software and services;
|
•
|
the availability of attractive programming for our digital 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;
|
•
|
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;
|
•
|
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; 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.
|
(i)
|
organic declines in total subscription revenue and overall revenue in the Netherlands during the
first
quarter of
2014
, as compared to the
first
quarter of
2013
;
|
(ii)
|
organic declines in subscription revenue from (a) broadband internet services in the Netherlands and (b) fixed-line telephony services in Belgium during the
first
quarter of
2014
, as compared to the
first
quarter of
2013
;
|
(iii)
|
organic declines in subscription revenue from (a) broadband internet services in the Netherlands and (b) fixed-line telephony services in Belgium during the
first
quarter of
2014
, as compared to the fourth quarter of
2013
;
|
(iv)
|
organic declines in video
RGU
s in most of our markets during the
first
quarter of
2014
, as net declines in our analog cable
RGU
s generally exceeded net additions to our digital cable
RGU
s (including migrations from analog cable) in these markets;
|
(v)
|
organic declines in
ARPU
from (a) broadband internet in the Netherlands and (b) fixed-line telephony services in all of our markets during the
first
quarter of
2014
, as compared to the
first
quarter of
2013
; and
|
(vi)
|
organic declines in overall
ARPU
in the Netherlands and many of our other markets during the
first
quarter of
2014
, as compared to the
first
quarter of
2013
.
|
|
|
Three months ended March 31,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2014
|
|
2013
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K. (Virgin Media)
|
$
|
1,727.9
|
|
|
$
|
—
|
|
|
$
|
1,727.9
|
|
|
N.M.
|
|
|
N.M.
|
|
Germany (Unitymedia KabelBW)
|
695.9
|
|
|
618.2
|
|
|
77.7
|
|
|
12.6
|
|
|
8.4
|
|
|||
Belgium (Telenet)
|
574.2
|
|
|
536.2
|
|
|
38.0
|
|
|
7.1
|
|
|
3.2
|
|
|||
The Netherlands
|
318.1
|
|
|
314.8
|
|
|
3.3
|
|
|
1.0
|
|
|
(2.6
|
)
|
|||
Switzerland
|
352.8
|
|
|
326.0
|
|
|
26.8
|
|
|
8.2
|
|
|
3.6
|
|
|||
Other Western Europe
|
230.6
|
|
|
222.6
|
|
|
8.0
|
|
|
3.6
|
|
|
(0.5
|
)
|
|||
Total Western Europe
|
3,899.5
|
|
|
2,017.8
|
|
|
1,881.7
|
|
|
93.3
|
|
|
5.1
|
|
|||
Central and Eastern Europe
|
289.2
|
|
|
287.8
|
|
|
1.4
|
|
|
0.5
|
|
|
(0.5
|
)
|
|||
Central and other
|
33.9
|
|
|
31.8
|
|
|
2.1
|
|
|
6.6
|
|
|
3.6
|
|
|||
Total European Operations Division
|
4,222.6
|
|
|
2,337.4
|
|
|
1,885.2
|
|
|
80.7
|
|
|
4.4
|
|
|||
Chile (VTR Group)
|
225.3
|
|
|
250.4
|
|
|
(25.1
|
)
|
|
(10.0
|
)
|
|
5.1
|
|
|||
Corporate and other
|
93.1
|
|
|
93.0
|
|
|
0.1
|
|
|
0.1
|
|
|
(0.6
|
)
|
|||
Intersegment eliminations
|
(7.3
|
)
|
|
(8.9
|
)
|
|
1.6
|
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total
|
$
|
4,533.7
|
|
|
$
|
2,671.9
|
|
|
$
|
1,861.8
|
|
|
69.7
|
|
|
4.4
|
|
|
Subscription
revenue (a)
|
|
Non-subscription
revenue (b)
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase in cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (c)
|
$
|
27.1
|
|
|
$
|
—
|
|
|
$
|
27.1
|
|
ARPU (d)
|
9.0
|
|
|
—
|
|
|
9.0
|
|
|||
Total increase in cable subscription revenue
|
36.1
|
|
|
—
|
|
|
36.1
|
|
|||
Increase in mobile subscription revenue (e)
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|||
Total increase in subscription revenue
|
37.5
|
|
|
—
|
|
|
37.5
|
|
|||
Increase in B2B revenue
|
—
|
|
|
1.0
|
|
|
1.0
|
|
|||
Increase in other non-subscription revenue (f)
|
—
|
|
|
13.5
|
|
|
13.5
|
|
|||
Total organic increase
|
37.5
|
|
|
14.5
|
|
|
52.0
|
|
|||
Impact of FX
|
22.9
|
|
|
2.8
|
|
|
25.7
|
|
|||
Total
|
$
|
60.4
|
|
|
$
|
17.3
|
|
|
$
|
77.7
|
|
(a)
|
Unitymedia KabelBW
’s subscription revenue includes revenue from multi-year bulk agreements with landlords or housing associations or with third parties that operate and administer the in-building networks on behalf of housing associations. These bulk agreements, which generally allow for the procurement of the basic video signals at volume-based discounts, provide access to nearly two-thirds of
Unitymedia KabelBW
’s video subscribers.
Unitymedia KabelBW
’s bulk agreements are, to a significant extent, medium- and long-term contracts, although bulk agreements related to approximately 15% of the video subscribers that
Unitymedia KabelBW
serves through these agreements expire by the end of 2015. During the
three months ended March 31, 2014
,
Unitymedia KabelBW
’s 20 largest bulk agreement accounts generated approximately 7% of its total revenue (including estimated amounts billed directly to the building occupants for premium cable, broadband internet and fixed-line telephony services). No assurance can be given that
Unitymedia KabelBW
’s bulk agreements will be renewed or extended on financially equivalent terms or at all, particularly in light of the commitments we made to the
FCO
in connection with the December 15, 2011 acquisition of
KBW
. In this regard, we have, among other items, agreed to grant a special termination right with respect to certain of
Unitymedia KabelBW
’s existing access agreements (the
Remedy HA Agreements
). The total number of dwelling units covered by the
Remedy HA Agreements
was approximately
340,000
as of December 15, 2011. At
March 31, 2014
, approximately 14% of the dwelling units covered by the
Remedy HA Agreements
remain subject to special termination rights. These dwelling units (which include agreements that are
|
(b)
|
Unitymedia KabelBW
’s other non-subscription revenue includes fees received for the carriage of certain channels included in
Unitymedia KabelBW
’s analog and digital cable offerings. This carriage fee revenue is subject to contracts that expire or are otherwise terminable by either party on various dates ranging from 2014 through 2018. The aggregate amount of revenue related to these carriage contracts represented approximately 5% of
Unitymedia KabelBW
’s total revenue during the
three months ended March 31, 2014
. In 2012, public broadcasters sent us notices purporting to terminate their carriage fee arrangements effective December 31, 2012. We have rejected these termination notices and we are seeking to negotiate with the public broadcasters to reach an acceptable agreement. Accordingly, beginning in 2013, we ceased recognition of the impacted revenue and will not recognize any future related revenue until such time as we resolve these disputes. In addition, some private broadcasters are seeking to change the distribution model to eliminate the payment of carriage fees and instead require that cable operators pay license fees to the broadcasters. In this regard, we are currently in negotiations with certain of the larger commercial broadcasters and we expect to reach agreements that are acceptable to all parties, although no assurance can be given that any of our agreements with broadcasters will be renewed or extended on financially equivalent terms, or at all. Also, our ability to increase the aggregate carriage fees that
Unitymedia KabelBW
receives for each channel is limited by certain commitments we made to regulators in connection with the acquisition of
KBW
.
|
(c)
|
The increase in
Unitymedia KabelBW
’s cable subscription revenue related to a change in the average number of
RGU
s is attributable to increases in the average numbers of broadband internet, fixed-line telephony and digital cable
RGU
s that were only partially offset by a decline in the average number of analog cable
RGU
s.
|
(d)
|
The increase in
Unitymedia KabelBW
’s cable subscription revenue related to a change in
ARPU
is due to (i) an improvement in
RGU
mix attributable to higher proportions of broadband internet and fixed-line telephony
RGU
s and (ii) a net increase resulting primarily from the following factors: (a) higher
ARPU
from broadband internet and digital cable services, (b) lower
ARPU
from fixed-line telephony services due to the net impact of
(1) a decrease in
ARPU
associated with lower fixed-line telephony call volume for customers on usage-based calling plans and (2) an increase in
ARPU
associated with the migration of customers to fixed-rate calling plans and related value-added services and (c) lower
ARPU
from analog cable services primarily due to lower negotiated rates for certain bulk agreements and higher proportions of customers receiving discounted analog cable services through these agreements.
|
(e)
|
The increase in
Unitymedia KabelBW
’s mobile subscription revenue is primarily due to the net effect of (i) an increase in the average number of mobile subscribers and (ii) lower
ARPU
due to the impact of an increase in the proportion of subscribers receiving lower-priced tiers of mobile services.
|
(f)
|
The increase in
Unitymedia KabelBW
’s other non-subscription revenue is primarily attributable to the net effect of (i) an increase in network usage revenue of $11.4 million, substantially all of which relates to the settlement of prior year amounts, (ii) a $4.3 million decrease in interconnect revenue, substantially all of which is attributable to lower fixed-line termination rates, and (iii) an increase in installation revenue.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase in cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
13.2
|
|
|
$
|
—
|
|
|
$
|
13.2
|
|
ARPU (b)
|
2.9
|
|
|
—
|
|
|
2.9
|
|
|||
Total increase in cable subscription revenue
|
16.1
|
|
|
—
|
|
|
16.1
|
|
|||
Increase in mobile subscription revenue (c)
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|||
Total increase in subscription revenue
|
19.8
|
|
|
—
|
|
|
19.8
|
|
|||
Increase in B2B revenue
|
—
|
|
|
1.2
|
|
|
1.2
|
|
|||
Decrease in other non-subscription revenue (d)
|
—
|
|
|
(4.0
|
)
|
|
(4.0
|
)
|
|||
Total organic increase (decrease)
|
19.8
|
|
|
(2.8
|
)
|
|
17.0
|
|
|||
Impact of FX
|
18.1
|
|
|
2.9
|
|
|
21.0
|
|
|||
Total
|
$
|
37.9
|
|
|
$
|
0.1
|
|
|
$
|
38.0
|
|
(a)
|
The increase in
Telenet
’s cable subscription revenue related to a change in the average number of
RGU
s is attributable to increases in the average numbers of fixed-line telephony, digital cable and broadband internet
RGU
s that were only partially offset by a decline in the average number of analog cable
RGU
s.
|
(b)
|
The increase in
Telenet
’s cable subscription revenue related to a change in
ARPU
is due to the net effect of (i) an improvement in
RGU
mix, attributable to higher proportions of digital cable, broadband internet and fixed-line telephony
RGU
s, and (ii) a net decrease resulting primarily from the following factors: (a) higher
ARPU
due to (1) higher-priced tiers of services in our bundles and (2) February 2014 price increases for certain existing analog and digital cable, broadband internet and fixed-line telephony services, (b) lower
ARPU
due to the impacts of higher bundling and promotional discounts, (c) lower
ARPU
from fixed-line telephony services due to (I) lower fixed-line telephony call volume for customers on usage-based plans and (II) a higher proportion of customers migrating to fixed-rate calling plans and (d) lower
ARPU
due to the impact of an increase in the proportion of subscribers receiving lower-priced tiers of broadband internet services.
|
(c)
|
The increase in
Telenet
’s mobile subscription revenue is due primarily to the net effect of (i) an increase in the average number of mobile subscribers and (ii) lower
ARPU
due to (a) the impact of an increase in the proportion of subscribers receiving lower-priced tiers of mobile services and (b) a reduction in billable usage.
|
(d)
|
The decrease in
Telenet
’s other non-subscription revenue is primarily due to the net effect of (i) a decrease in mobile handset sales of $5.8 million, (ii) an increase in interconnect revenue of $3.9 million, primarily associated with growth in mobile services, and (iii) individually insignificant changes in other non-subscription revenue categories. The decrease in
Telenet
’s mobile handset sales, which typically generate relatively low margins, is primarily due to a decrease in sales to third-party retailers.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase (decrease) in cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
ARPU (b)
|
(7.1
|
)
|
|
—
|
|
|
(7.1
|
)
|
|||
Total decrease in cable subscription revenue
|
(7.0
|
)
|
|
—
|
|
|
(7.0
|
)
|
|||
Decrease in B2B revenue
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||
Decrease in other non-subscription revenue (c)
|
—
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|||
Total organic decrease
|
(7.0
|
)
|
|
(1.3
|
)
|
|
(8.3
|
)
|
|||
Impact of FX
|
10.6
|
|
|
1.0
|
|
|
11.6
|
|
|||
Total
|
$
|
3.6
|
|
|
$
|
(0.3
|
)
|
|
$
|
3.3
|
|
(a)
|
The increase in the Netherlands’ cable subscription revenue related to a change in the average number of
RGU
s is attributable to increases in the average numbers of fixed-line telephony, broadband internet and digital cable
RGU
s that were largely offset by a decline in the average number of analog cable
RGU
s.
|
(b)
|
The decrease in the Netherlands’ cable subscription revenue related to a change in
ARPU
is due to the net effect of (i) a decrease resulting primarily from the following factors: (a) lower
ARPU
due to the impact of an increase in the proportion of subscribers receiving lower-priced tiers of broadband internet and fixed-line telephony services and (b) lower
ARPU
due to a decrease in fixed-line telephony call volume and (ii) an improvement in
RGU
mix, primarily attributable to higher proportions of digital cable
RGU
s.
|
(c)
|
The decrease in the Netherlands’ other non-subscription revenue is due to individually insignificant changes in various non-subscription revenue categories.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase in cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
7.6
|
|
|
$
|
—
|
|
|
$
|
7.6
|
|
ARPU (b)
|
6.0
|
|
|
—
|
|
|
6.0
|
|
|||
Total increase in cable subscription revenue
|
13.6
|
|
|
—
|
|
|
13.6
|
|
|||
Increase in B2B revenue
|
—
|
|
|
1.4
|
|
|
1.4
|
|
|||
Decrease in other non-subscription revenue (c)
|
—
|
|
|
(3.2
|
)
|
|
(3.2
|
)
|
|||
Total organic increase (decrease)
|
13.6
|
|
|
(1.8
|
)
|
|
11.8
|
|
|||
Impact of acquisitions
|
1.3
|
|
|
(0.7
|
)
|
|
0.6
|
|
|||
Impact of FX
|
12.3
|
|
|
2.1
|
|
|
14.4
|
|
|||
Total
|
$
|
27.2
|
|
|
$
|
(0.4
|
)
|
|
$
|
26.8
|
|
(a)
|
The increase in Switzerland’s cable subscription revenue related to a change in the average number of
RGU
s is attributable to increases in the average numbers of broadband internet, digital cable and fixed-line telephony
RGU
s that were only partially offset by a decline in the average number of analog cable
RGU
s.
|
(b)
|
The increase in Switzerland’s cable subscription revenue related to a change in
ARPU
is due to (i) an improvement in
RGU
mix, primarily attributable to higher proportions of broadband internet and digital cable
RGU
s, and (ii) a net increase resulting largely from the following factors: (a) higher
ARPU
due to January 2014 price increases for broadband internet and video services, (b) higher
ARPU
from incremental digital cable services and (c) lower
ARPU
due to the impact of bundling discounts.
|
(c)
|
The decrease in Switzerland’s other non-subscription revenue is primarily attributable to (i) a decrease in installation revenue and (ii) a net decrease resulting from individually insignificant changes in other non-subscription revenue categories.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase (decrease) in cable subscription revenue due to change in (a):
|
|
|
|
|
|
||||||
Average number of RGUs (b)
|
$
|
9.7
|
|
|
$
|
—
|
|
|
$
|
9.7
|
|
ARPU (c)
|
(5.8
|
)
|
|
—
|
|
|
(5.8
|
)
|
|||
Total increase in cable subscription revenue
|
3.9
|
|
|
—
|
|
|
3.9
|
|
|||
Decrease in B2B revenue
|
—
|
|
|
(2.3
|
)
|
|
(2.3
|
)
|
|||
Decrease in other non-subscription revenue (a) (d)
|
—
|
|
|
(2.7
|
)
|
|
(2.7
|
)
|
|||
Organic increase (decrease)
|
3.9
|
|
|
(5.0
|
)
|
|
(1.1
|
)
|
|||
Impact of an acquisition
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||
Impact of FX
|
7.9
|
|
|
0.7
|
|
|
8.6
|
|
|||
Total
|
$
|
12.3
|
|
|
$
|
(4.3
|
)
|
|
$
|
8.0
|
|
(a)
|
In connection with the
Virgin Media Acquisition
, we determined that we would no longer externally report
DSL
subscribers as
RGU
s. Accordingly, for the
three months ended March 31, 2013
, we have reclassified the revenue from our
DSL
subscribers in Austria from broadband internet and fixed-line telephony subscription revenue to other non-subscription revenue.
|
(b)
|
The increase in Other Western Europe’s cable subscription revenue related to a change in the average number of
RGU
s is attributable to increases in the average numbers of fixed-line telephony, broadband internet and, to a lesser extent, digital cable
RGU
s in each of Ireland and Austria that were only partially offset by a decline in the average number of analog cable
RGU
s in each of Austria and Ireland and, to a lesser extent,
MMDS
video
RGU
s in Ireland.
|
(c)
|
The decrease in Other Western Europe’s cable subscription revenue related to a change in
ARPU
is attributable to a decrease in
ARPU
in each of Ireland and Austria.
Other Western Europe’s overall
ARPU
was impacted by an adverse change in
RGU
mix, primarily attributable to a higher proportion of digital cable
RGU
s in Ireland and a lower proportion of fixed-line telephony
RGU
s in each of Ireland and Austria.
The lower
ARPU
in Ireland is also largely due to the net effect of (i) lower
ARPU
due to the impact of bundling discounts, (ii) higher
ARPU
due to the inclusion of higher-priced tiers of broadband internet and digital cable services in our promotional bundles and (iii) lower
ARPU
due to a decrease in fixed-line telephony call volume for customers on usage-based plans.
Austria’s
ARPU
slightly decreased as the impact of higher bundling discounts was only partially offset by a January 2014 price increase for video services.
|
(d)
|
The decrease in Other Western Europe’s other non-subscription revenue is due primarily to (i) a decrease in installation revenue in Ireland and (ii) a net decrease resulting from individually insignificant changes in other non-subscription revenue categories.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase (decrease) in cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
5.3
|
|
|
$
|
—
|
|
|
$
|
5.3
|
|
ARPU (b)
|
(6.6
|
)
|
|
—
|
|
|
(6.6
|
)
|
|||
Total decrease in cable subscription revenue
|
(1.3
|
)
|
|
—
|
|
|
(1.3
|
)
|
|||
Increase in B2B revenue
|
—
|
|
|
0.9
|
|
|
0.9
|
|
|||
Decrease in other non-subscription revenue (c)
|
—
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|||
Total organic decrease
|
(1.3
|
)
|
|
(0.1
|
)
|
|
(1.4
|
)
|
|||
Impact of FX
|
2.4
|
|
|
0.4
|
|
|
2.8
|
|
|||
Total
|
$
|
1.1
|
|
|
$
|
0.3
|
|
|
$
|
1.4
|
|
(a)
|
The increase in Central and Eastern Europe’s cable subscription revenue related to a change in the average number of
RGU
s is primarily attributable to increases in the average numbers of digital cable, broadband internet and fixed-line telephony
RGU
s in Poland, Romania, Hungary and Slovakia that were only partially offset by (i) declines in the average numbers of analog cable
RGU
s in Poland, Romania, Hungary and Slovakia and (ii) declines in the average numbers of digital cable and fixed-line telephony
RGU
s in the Czech Republic.
|
(b)
|
The decrease in the Central and Eastern Europe’s cable subscription revenue related to a change in
ARPU
is due to the net effect of (i) a decrease resulting primarily from the following factors: (a) lower
ARPU
due to the impact of higher bundling discounts, (b) higher
ARPU
due to the inclusion of higher-priced tiers of digital cable and broadband internet services in our promotional bundles, (c) lower
ARPU
from fixed-line telephony services, primarily due to (1) an increase in the proportion of subscribers receiving lower-priced calling plans and (2) a decrease in call volume for customers on usage-based calling plans and (d) lower
ARPU
from incremental digital cable services and (ii) an improvement in
RGU
mix, primarily attributable to higher proportions of digital cable and broadband internet
RGU
s.
|
(c)
|
The decrease in Central and Eastern Europe’s non-subscription revenue is primarily due to a decrease in interconnect revenue, largely in Poland as a result of lower fixed-line telephony termination rates.
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||
|
in millions
|
||||||||||
Increase in cable subscription revenue due to change in:
|
|
|
|
|
|
||||||
Average number of RGUs (a)
|
$
|
11.3
|
|
|
$
|
—
|
|
|
$
|
11.3
|
|
ARPU (b)
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|||
Total increase in cable subscription revenue
|
16.8
|
|
|
—
|
|
|
16.8
|
|
|||
Decrease in mobile subscription revenue
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|||
Total increase in subscription revenue
|
16.5
|
|
|
—
|
|
|
16.5
|
|
|||
Decrease in non-subscription revenue (c)
|
—
|
|
|
(3.6
|
)
|
|
(3.6
|
)
|
|||
Total organic increase (decrease)
|
16.5
|
|
|
(3.6
|
)
|
|
12.9
|
|
|||
Impact of FX
|
(35.8
|
)
|
|
(2.2
|
)
|
|
(38.0
|
)
|
|||
Total
|
$
|
(19.3
|
)
|
|
$
|
(5.8
|
)
|
|
$
|
(25.1
|
)
|
(a)
|
The increase in the
VTR Group
’s cable subscription revenue related to a change in the average number of
RGU
s is attributable to increases in the average numbers of digital cable, broadband internet and fixed-line telephony
RGU
s that were only partially offset by a decline in the average number of analog cable
RGU
s.
|
(b)
|
The increase in the
VTR Group
’s cable subscription revenue related to a change in
ARPU
is due to (i) a net increase resulting from the following factors: (a) higher
ARPU
due to semi-annual inflation and other price adjustments for video, broadband internet and fixed-line telephony services, (b) higher
ARPU
from broadband internet services, (c) lower
ARPU
due to the impact of higher bundling and promotional discounts and (d) lower
ARPU
due to a decrease in fixed-line telephony call volume for customers on usage-based plans and (ii) an improvement in
RGU
mix, primarily attributable to higher proportions of digital cable, fixed-line telephony and broadband internet
RGU
s.
|
(c)
|
The decrease in the
VTR Group
’s non-subscription revenue is primarily attributable to (i) a decrease in interconnect revenue primarily associated with a January 2014 decline in mobile terminations rates, (ii) a decrease in prepaid mobile handset sales and (iii) a decrease in installation revenue.
|
|
|
Three months ended March 31,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2014
|
|
2013
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K. (Virgin Media)
|
$
|
768.7
|
|
|
$
|
—
|
|
|
$
|
768.7
|
|
|
N.M.
|
|
|
N.M.
|
|
Germany (Unitymedia KabelBW)
|
162.0
|
|
|
161.7
|
|
|
0.3
|
|
|
0.2
|
|
|
(3.4
|
)
|
|||
Belgium (Telenet)
|
206.5
|
|
|
230.9
|
|
|
(24.4
|
)
|
|
(10.6
|
)
|
|
(13.6
|
)
|
|||
The Netherlands
|
96.1
|
|
|
95.3
|
|
|
0.8
|
|
|
0.8
|
|
|
(2.9
|
)
|
|||
Switzerland
|
98.4
|
|
|
92.2
|
|
|
6.2
|
|
|
6.7
|
|
|
2.3
|
|
|||
Other Western Europe
|
85.5
|
|
|
86.9
|
|
|
(1.4
|
)
|
|
(1.6
|
)
|
|
(5.6
|
)
|
|||
Total Western Europe
|
1,417.2
|
|
|
667.0
|
|
|
750.2
|
|
|
112.5
|
|
|
(6.4
|
)
|
|||
Central and Eastern Europe
|
103.9
|
|
|
109.5
|
|
|
(5.6
|
)
|
|
(5.1
|
)
|
|
(6.1
|
)
|
|||
Central and other
|
35.5
|
|
|
31.3
|
|
|
4.2
|
|
|
13.4
|
|
|
10.3
|
|
|||
Total European Operations Division
|
1,556.6
|
|
|
807.8
|
|
|
748.8
|
|
|
92.7
|
|
|
(5.7
|
)
|
|||
Chile (VTR Group)
|
101.4
|
|
|
120.5
|
|
|
(19.1
|
)
|
|
(15.9
|
)
|
|
(1.7
|
)
|
|||
Corporate and other
|
50.2
|
|
|
54.1
|
|
|
(3.9
|
)
|
|
(7.2
|
)
|
|
(8.0
|
)
|
|||
Intersegment eliminations
|
(10.7
|
)
|
|
(19.5
|
)
|
|
8.8
|
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total operating expenses excluding share-based compensation expense
|
1,697.5
|
|
|
962.9
|
|
|
734.6
|
|
|
76.3
|
|
|
(4.5
|
)
|
|||
Share-based compensation expense
|
1.3
|
|
|
3.9
|
|
|
(2.6
|
)
|
|
(66.7
|
)
|
|
|
||||
Total
|
$
|
1,698.8
|
|
|
$
|
966.8
|
|
|
$
|
732.0
|
|
|
75.7
|
|
|
|
•
|
A decrease in mobile handset costs of $19.7 million in Belgium, due primarily to (i) lower costs associated with subscriber promotions involving free or heavily-discounted handsets and (ii) decreased mobile handset sales to third-party retailers;
|
•
|
A decrease in interconnect costs of $15.2 million or 15.7%, due primarily to the net effect of (i) decreased costs due to lower call volumes predominantly in Belgium, the Netherlands, Ireland, Germany and the
U.K.
, (ii) increased costs in Belgium attributable to mobile subscriber growth, (iii) decreased costs due to lower rates, primarily in Germany and the
U.K.
, and (iv) a decrease of $2.6 million in Belgium due to the impact of an accrual release in the first quarter of 2014 associated with the reassessment of an operational contingency;
|
•
|
A decrease in personnel costs of $12.5 million or 9.1%, due primarily to the net effect of (i) decreased staffing levels, primarily as a result of integration and reorganization activities in the
U.K.
associated with the
Virgin Media Acquisition
, (ii) annual wage increases, primarily in the
U.K.
, Germany, Belgium and the Netherlands, and (iii) decreased costs related to a higher proportion of capitalizable activities, primarily in Germany;
|
•
|
An increase in programming and copyright costs of $5.8 million or 2.4%, due primarily to (i) growth in digital video services in the
U.K.
, Belgium, Switzerland, Germany and Hungary and (ii) increased costs for sports rights in the
U.K.
In addition, accrual releases related to the settlement or reassessment of operational contingencies resulted in a net decrease in programming and copyright costs of $19.4 million, as the impact of accrual releases during the first quarter of 2014 in Belgium of $16.9 million and in Poland of $7.0 million more than offset the $4.5 million aggregate impact of similar reassessments and settlements that reduced the first quarter 2013 costs in Belgium and the Netherlands; and
|
•
|
A decrease in outsourced labor and professional fees of $4.0 million or 7.1%, due primarily to the net effect of (i) lower call center costs in Belgium, the Netherlands and the
U.K.
, and (ii) higher call center costs in Germany.
|
•
|
An increase in programming and copyright costs of $6.8 million or 17.8%, primarily associated with (i) growth in digital cable services and (ii) an increase arising from foreign currency exchange rate fluctuations with respect to the
VTR Group
’s
U.S.
dollar denominated programming contracts. A significant portion of the
VTR Group
’s programming costs are denominated in
U.S.
dollars;
|
•
|
A decrease in facilities expenses of $4.9 million or 86.9%, due primarily to lower tower and real estate rental costs, as the discounted fair value of all remaining payments due under these leases was included in the restructuring charges recorded by
VTR Wireless
during the third and fourth quarters of 2013 in connection with certain strategic changes that were implemented with regard to the mobile operations of
VTR Wireless
;
|
•
|
A decrease in mobile access and interconnect costs of $0.2 million or 0.9%, primarily attributable to the net effect of (i) lower mobile access charges at
VTR Wireless
due to the impact of lower rates and (ii) higher interconnect costs at
VTR GlobalCom
, as the impact of higher call volume was only partially offset by lower rates; and
|
•
|
A net decrease resulting from individually insignificant changes in other operating expense categories.
|
|
|
Three months ended March 31,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2014
|
|
2013
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K. (Virgin Media)
|
$
|
222.7
|
|
|
$
|
—
|
|
|
$
|
222.7
|
|
|
N.M.
|
|
|
N.M.
|
|
Germany (Unitymedia KabelBW)
|
104.9
|
|
|
96.5
|
|
|
8.4
|
|
|
8.7
|
|
|
4.7
|
|
|||
Belgium (Telenet)
|
65.6
|
|
|
57.8
|
|
|
7.8
|
|
|
13.5
|
|
|
9.4
|
|
|||
The Netherlands
|
38.7
|
|
|
34.7
|
|
|
4.0
|
|
|
11.5
|
|
|
7.6
|
|
|||
Switzerland
|
48.0
|
|
|
51.6
|
|
|
(3.6
|
)
|
|
(7.0
|
)
|
|
(10.8
|
)
|
|||
Other Western Europe
|
32.0
|
|
|
30.9
|
|
|
1.1
|
|
|
3.6
|
|
|
(0.9
|
)
|
|||
Total Western Europe
|
511.9
|
|
|
271.5
|
|
|
240.4
|
|
|
88.5
|
|
|
(0.9
|
)
|
|||
Central and Eastern Europe
|
38.3
|
|
|
37.7
|
|
|
0.6
|
|
|
1.6
|
|
|
0.5
|
|
|||
Central and other
|
58.1
|
|
|
46.3
|
|
|
11.8
|
|
|
25.5
|
|
|
21.3
|
|
|||
Total European Operations Division
|
608.3
|
|
|
355.5
|
|
|
252.8
|
|
|
71.1
|
|
|
2.1
|
|
|||
Chile (VTR Group)
|
41.2
|
|
|
44.7
|
|
|
(3.5
|
)
|
|
(7.8
|
)
|
|
7.4
|
|
|||
Corporate and other
|
59.8
|
|
|
49.5
|
|
|
10.3
|
|
|
20.8
|
|
|
18.2
|
|
|||
Intersegment eliminations
|
(0.6
|
)
|
|
(0.7
|
)
|
|
0.1
|
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total SG&A expenses excluding share-based compensation expense
|
708.7
|
|
|
449.0
|
|
|
259.7
|
|
|
57.8
|
|
|
4.5
|
|
|||
Share-based compensation expense
|
53.8
|
|
|
22.4
|
|
|
31.4
|
|
|
140.2
|
|
|
|
||||
Total
|
$
|
762.5
|
|
|
$
|
471.4
|
|
|
$
|
291.1
|
|
|
61.8
|
|
|
|
•
|
An increase in information technology-related expenses of $10.2 million or 58.0%, due primarily to higher software and other information technology-related maintenance costs, primarily in the
U.K.
, the
European Operations Division
’s central operations and Germany;
|
•
|
An increase in outsourced labor and professional fees of $5.8 million or 25.2%, due primarily to an increase in consulting costs related to strategic initiatives in the
European Operations Division
’s central operations, Belgium and Germany;
|
•
|
A decrease in sales and marketing costs of $6.8 million or 5.4%, due primarily to the net effect of (i) lower third-party sales commissions, primarily in the
U.K.
, Belgium and Switzerland, and (ii) higher costs associated with rebranding and other advertising campaigns, as increased costs in Belgium and Germany more than offset decreases in the
U.K.
and Switzerland; and
|
•
|
A decrease in personnel costs of $1.2 million or 0.9%, due to the net effect of (i) decreased staffing levels in the
U.K.
as a result of integration and reorganization activities associated with the
Virgin Media Acquisition
, (ii) annual wage increases, primarily in the
U.K.
,
the Netherlands, Belgium, the
European Operations Division
’s central operations and Germany, (iii) increased staffing levels in Germany, the
European Operations Division
’s central operations and the Netherlands, and (iv) higher bonus costs in the
European Operations Division
’s central operations.
|
•
|
An increase in sales and marketing costs of $4.0 million or 29.1%, primarily due to the net effect of (i) higher advertising costs and third-party sales commissions at
VTR GlobalCom
and (ii) lower third-party sales commissions at
VTR Wireless
;
|
•
|
An increase in
VTR GlobalCom
’s personnel costs of $0.2 million or 1.2%, primarily due to the net effect of (i) a $2.0 million decrease due to lower staffing levels and (ii) a $1.5 million increase due to higher severance costs; and
|
•
|
A net decrease resulting from individually insignificant changes in other SG&A expense categories.
|
|
|
Three months ended March 31,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2014
|
|
2013
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K. (Virgin Media)
|
$
|
736.5
|
|
|
$
|
—
|
|
|
$
|
736.5
|
|
|
N.M.
|
|
|
N.M.
|
|
Germany (Unitymedia KabelBW)
|
429.0
|
|
|
360.0
|
|
|
69.0
|
|
|
19.2
|
|
|
14.7
|
|
|||
Belgium (Telenet)
|
302.1
|
|
|
247.5
|
|
|
54.6
|
|
|
22.1
|
|
|
17.4
|
|
|||
The Netherlands
|
183.3
|
|
|
184.8
|
|
|
(1.5
|
)
|
|
(0.8
|
)
|
|
(4.4
|
)
|
|||
Switzerland
|
206.4
|
|
|
182.2
|
|
|
24.2
|
|
|
13.3
|
|
|
8.3
|
|
|||
Other Western Europe
|
113.1
|
|
|
104.8
|
|
|
8.3
|
|
|
7.9
|
|
|
3.9
|
|
|||
Total Western Europe
|
1,970.4
|
|
|
1,079.3
|
|
|
891.1
|
|
|
82.6
|
|
|
13.7
|
|
|||
Central and Eastern Europe
|
147.0
|
|
|
140.6
|
|
|
6.4
|
|
|
4.6
|
|
|
3.6
|
|
|||
Central and other
|
(59.7
|
)
|
|
(45.8
|
)
|
|
(13.9
|
)
|
|
(30.3
|
)
|
|
(26.4
|
)
|
|||
Total European Operations Division
|
2,057.7
|
|
|
1,174.1
|
|
|
883.6
|
|
|
75.3
|
|
|
12.0
|
|
|||
Chile (VTR Group)
|
82.7
|
|
|
85.2
|
|
|
(2.5
|
)
|
|
(2.9
|
)
|
|
13.6
|
|
|||
Corporate and other
|
(16.9
|
)
|
|
(10.6
|
)
|
|
(6.3
|
)
|
|
(59.4
|
)
|
|
N.M.
|
|
|||
Intersegment eliminations
|
4.0
|
|
|
11.3
|
|
|
(7.3
|
)
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total
|
$
|
2,127.5
|
|
|
$
|
1,260.0
|
|
|
$
|
867.5
|
|
|
68.8
|
|
|
11.1
|
|
|
Three months ended March 31,
|
||
|
2014
|
|
2013
|
|
%
|
||
European Operations Division:
|
|
|
|
U.K. (Virgin Media)
|
42.6
|
|
N.M.
|
Germany (Unitymedia KabelBW)
|
61.6
|
|
58.2
|
Belgium (Telenet)
|
52.6
|
|
46.2
|
The Netherlands
|
57.6
|
|
58.7
|
Switzerland
|
58.5
|
|
55.9
|
Other Western Europe
|
49.0
|
|
47.1
|
Total Western Europe
|
50.5
|
|
53.5
|
Central and Eastern Europe
|
50.8
|
|
48.9
|
Total European Operations Division
|
48.7
|
|
50.2
|
Chile (VTR Group)
|
36.7
|
|
34.0
|
|
|
Three months ended March 31,
|
|
Increase
|
|
Organic increase (decrease) (f)
|
|||||||||||
|
2014
|
|
2013
|
|
$
|
|
%
|
|
%
|
|||||||
|
in millions
|
|
|
|
|
|||||||||||
Subscription revenue (a):
|
|
|
|
|
|
|
|
|
|
|||||||
Video
|
$
|
1,640.5
|
|
|
$
|
1,212.7
|
|
|
$
|
427.8
|
|
|
35.3
|
|
0.2
|
|
Broadband internet (b)
|
1,141.7
|
|
|
659.3
|
|
|
482.4
|
|
|
73.2
|
|
16.8
|
|
|||
Fixed-line telephony (b)
|
823.1
|
|
|
409.4
|
|
|
413.7
|
|
|
101.1
|
|
0.7
|
|
|||
Cable subscription revenue
|
3,605.3
|
|
|
2,281.4
|
|
|
1,323.9
|
|
|
58.0
|
|
5.1
|
|
|||
Mobile subscription revenue (c)
|
257.3
|
|
|
62.1
|
|
|
195.2
|
|
|
314.3
|
|
13.3
|
|
|||
Total subscription revenue
|
3,862.6
|
|
|
2,343.5
|
|
|
1,519.1
|
|
|
64.8
|
|
5.3
|
|
|||
B2B revenue (d)
|
372.5
|
|
|
117.3
|
|
|
255.2
|
|
|
217.6
|
|
7.3
|
|
|||
Other revenue (b) (c) (e)
|
298.6
|
|
|
211.1
|
|
|
87.5
|
|
|
41.4
|
|
(7.9
|
)
|
|||
Total revenue
|
$
|
4,533.7
|
|
|
$
|
2,671.9
|
|
|
$
|
1,861.8
|
|
|
69.7
|
|
4.4
|
|
(a)
|
Subscription revenue includes amounts received from subscribers for ongoing services, excluding installation fees and late fees. 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.
|
(b)
|
In connection with the
Virgin Media Acquisition
, we determined that we would no longer externally report
DSL
subscribers as
RGU
s. Accordingly, for the
three months ended March 31, 2013
, we have reclassified the revenue from our
DSL
subscribers in Austria from broadband internet and fixed-line telephony subscription revenue to other revenue.
|
(c)
|
Mobile subscription revenue excludes
$60.8 million
and
$23.2 million
, respectively, of mobile interconnect revenue. Mobile interconnect revenue and revenue from mobile handset sales are included in other revenue.
|
(d)
|
These amounts include
B2B
revenue from business broadband internet, video, voice, wireless and data services offered to medium to large enterprises and, on a wholesale basis, to other operators. We also provide services to certain
SOHO
subscribers.
SOHO
subscribers pay a premium price to receive enhanced service levels along with video, broadband internet or fixed-line telephony services that are the same or similar to the mass marketed products offered to our residential subscribers. Revenue from
SOHO
subscribers, which aggregated
$46.5 million
and
$32.8 million
, respectively, is included in cable subscription revenue.
|
(e)
|
Other revenue includes, among other items, interconnect, carriage fee and installation revenue.
|
(f)
|
As further described under
Material Changes in Results of Operations
above, our organic revenue growth rates are impacted by the organic growth of
Virgin Media
. Excluding the impacts of the organic growth of
Virgin Media
, our organic growth rates would have been as follows:
|
|
Organic increase (decrease)
|
|
|
%
|
|
|
|
|
Subscription revenue:
|
|
|
Video
|
0.4
|
|
Broadband internet
|
11.1
|
|
Fixed-line telephony
|
0.6
|
|
Cable subscription revenue
|
3.6
|
|
Mobile
|
7.6
|
|
Total subscription revenue
|
3.7
|
|
B2B revenue
|
0.5
|
|
Other revenue
|
(0.5
|
)
|
Total revenue
|
3.2
|
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
Liberty Global shares:
|
|
|
|
||||
Performance-based incentive awards (a)
|
$
|
20.6
|
|
|
$
|
4.1
|
|
Other share-based incentive awards
|
30.2
|
|
|
11.2
|
|
||
Total Liberty Global shares (b)
|
50.8
|
|
|
15.3
|
|
||
Telenet share-based incentive awards (c)
|
2.9
|
|
|
11.0
|
|
||
Other
|
1.4
|
|
|
0.5
|
|
||
Total
|
$
|
55.1
|
|
|
$
|
26.8
|
|
Included in:
|
|
|
|
||||
Operating expense
|
$
|
1.3
|
|
|
$
|
3.9
|
|
SG&A expense
|
53.8
|
|
|
22.4
|
|
||
Total
|
$
|
55.1
|
|
|
$
|
26.3
|
|
(a)
|
Includes share-based compensation expense related to
Liberty Global
PSU
s and, for the
2014
period, the
Challenge Performance Awards
.
|
(b)
|
In connection with the
Virgin Media Acquisition
, we issued
Virgin Media Replacement Awards
to employees and former directors of
Virgin Media
in exchange for corresponding
Virgin Media
awards. During the
2014
period,
Virgin Media
recorded share-based compensation expense of
$19.3 million
, primarily related to the
Virgin Media Replacement Awards
.
|
(c)
|
The amount for the
2013
period includes
$6.4 million
related to the accelerated vesting of options granted under the
Telenet 2010 SSOP
.
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Cross-currency and interest rate derivative contracts (a)
|
$
|
(420.2
|
)
|
|
$
|
180.6
|
|
Equity-related derivative instruments (b):
|
|
|
|
|
|
||
Ziggo Collar
|
15.4
|
|
|
—
|
|
||
Sumitomo Collar
|
8.5
|
|
|
(87.7
|
)
|
||
Other
|
0.2
|
|
|
—
|
|
||
Total equity-related derivative instruments
|
24.1
|
|
|
(87.7
|
)
|
||
Foreign currency forward contracts (c)
|
20.0
|
|
|
102.4
|
|
||
Other
|
(0.5
|
)
|
|
0.2
|
|
||
Total
|
$
|
(376.6
|
)
|
|
$
|
195.5
|
|
(a)
|
The loss during the
2014
period is primarily attributable to the net effect of (i) losses associated with decreases in market interest rates in the euro, Swiss franc and British pound sterling markets, (ii) losses associated with an increase in the value of the British pound sterling relative to the
U.S.
dollar, (iii) gains associated with decreases in the values of the Hungarian forint and Chilean peso relative to the euro, and (iv) gains associated with a decrease in the value of the Chilean peso relative to the
U.S.
dollar. In addition, the loss during the
2014
period includes a net loss of
$29.5 million
resulting from changes in our credit risk valuation adjustments. The gain during the
2013
period is primarily attributable to the net effect of (i) gains associated with decreases in the values of the euro and Swiss franc relative to the
U.S.
dollar, (ii) gains associated with decreases in the values of the Hungarian forint, Polish zloty, Swiss franc and Czech koruna relative to the euro, (iii) gains associated with increases in market interest rates in the euro and Swiss franc markets and (iv) losses associated with increases in market interest rates in the
U.S.
dollar market. In addition, the gain during the
2013
period includes a net loss of
$32.5 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
5
to our condensed consolidated financial statements.
|
(c)
|
The amount for the 2013 period includes activity related to deal contingent foreign currency forward contracts that were settled in connection with the
Virgin Media Acquisition
.
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
|
|
|
|
||||
U.S. dollar denominated debt issued by a British pound sterling functional currency entity
|
$
|
27.9
|
|
|
$
|
—
|
|
Yen denominated debt issued by a U.S. dollar functional currency entity
|
(19.0
|
)
|
|
86.0
|
|
||
Intercompany payables and receivables denominated in a currency other than the entity’s functional currency (a)
|
(17.3
|
)
|
|
(182.2
|
)
|
||
Cash and restricted cash denominated in a currency other than the entity’s functional currency
|
(9.5
|
)
|
|
58.4
|
|
||
U.S. dollar denominated debt issued by euro functional currency entities
|
(4.4
|
)
|
|
(106.7
|
)
|
||
Other
|
1.5
|
|
|
8.2
|
|
||
Total
|
$
|
(20.8
|
)
|
|
$
|
(136.3
|
)
|
(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.
, Europe and Chile.
|
•
|
a
$16.5 million
loss related to the repayment of Facilities R, S, AE and AF under the
UPC Broadband Holding Bank Facility
, including (i) a
$11.6 million
write-off of deferred financing costs and (ii) a
$4.9 million
write-off of an unamortized discount; and
|
•
|
an aggregate loss of
$4.3 million
related to the write-off of deferred financing costs, including (i) a
$2.3 million
loss associated with the repayment of the
Ziggo Margin Loan
and (ii) a
$2.0 million
loss associated with the repayment of the
VTR Wireless Bank Facility
.
|
•
|
an
$85.5 million
loss, which includes (i)
$35.6 million
of aggregate redemption premiums related to
UPC Holding
’s then existing euro-denominated 8.0% senior notes (the
UPC Holding 8.0% Senior Notes
) and euro-denominated 9.75% senior notes (the
UPC Holding 9.75% Senior Notes
), (ii) the write-off of
$24.5 million
of an unamortized discount related to the
UPC Holding 9.75% Senior Notes
, (iii) the write-off of
$19.0 million
of aggregate deferred financing costs associated with the
UPC Holding 8.0% Senior Notes
and the
UPC Holding 9.75% Senior Notes
and (iv)
$6.4 million
of aggregate interest incurred on the
UPC Holding 8.0% Senior Notes
and the
UPC Holding 9.75% Senior Notes
between the respective dates that we and the trustee were legally discharged; and
|
•
|
a $71.1 million loss related to the redemption of a portion of
Unitymedia KabelBW
’s then existing euro-denominated 8.125% senior secured notes, including (i) $50.5 million representing the difference between the principal amount and redemption price of the debt redeemed and (ii) $20.6 million associated with the write-off of deferred financing costs and an unamortized discount.
|
Cash and cash equivalents held by:
|
|
||
Liberty Global and unrestricted subsidiaries:
|
|
||
Liberty Global (a)
|
$
|
677.0
|
|
Unrestricted subsidiaries (b) (c)
|
366.8
|
|
|
Total Liberty Global and unrestricted subsidiaries
|
1,043.8
|
|
|
Borrowing groups (d):
|
|
||
Virgin Media (c)
|
1,576.7
|
|
|
Telenet
|
297.6
|
|
|
VTR Finance
|
105.8
|
|
|
UPC Holding
|
31.4
|
|
|
Unitymedia KabelBW
|
27.9
|
|
|
Liberty Puerto Rico
|
8.9
|
|
|
Total borrowing groups
|
2,048.3
|
|
|
Total cash and cash equivalents
|
$
|
3,092.1
|
|
(a)
|
Represents the amount held by
Liberty Global
on a standalone basis.
|
(b)
|
Represents the aggregate amount held by subsidiaries of
Liberty Global
that are outside of our borrowing groups.
|
(c)
|
The Virgin Media borrowing group includes certain subsidiaries of
Virgin Media
, but excludes
Virgin Media
. The $116.3 million of cash and cash equivalents held by
Virgin Media
is included in the amount shown for
Liberty Global
’s unrestricted subsidiaries. In April 2014, the
Virgin Media
borrowing group used $1,524.6 million of its cash and cash equivalents to redeem all the
2018 VM Sterling Senior Secured Notes
, including the related redemption premium.
|
(d)
|
Except as otherwise noted, represents the aggregate amounts held by the parent entity and restricted subsidiaries of our borrowing groups.
|
|
Three months ended
|
|
|
||||||||
|
March 31,
|
|
|
||||||||
|
2014
|
|
2013
|
|
Change
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
$
|
1,320.4
|
|
|
$
|
551.7
|
|
|
$
|
768.7
|
|
Net cash provided (used) by investing activities
|
231.7
|
|
|
(493.8
|
)
|
|
725.5
|
|
|||
Net cash provided (used) by financing activities
|
(1,162.3
|
)
|
|
835.1
|
|
|
(1,997.4
|
)
|
|||
Effect of exchange rate changes on cash
|
15.0
|
|
|
(21.5
|
)
|
|
36.5
|
|
|||
Net increase in cash and cash equivalents
|
$
|
404.8
|
|
|
$
|
871.5
|
|
|
$
|
(466.7
|
)
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Property and equipment additions
|
$
|
910.2
|
|
|
$
|
531.0
|
|
Assets acquired under capital-related vendor financing arrangements
|
(170.5
|
)
|
|
(76.1
|
)
|
||
Assets acquired under capital leases
|
(49.0
|
)
|
|
(18.3
|
)
|
||
Changes in current liabilities related to capital expenditures
|
44.3
|
|
|
62.8
|
|
||
Capital expenditures
|
$
|
735.0
|
|
|
$
|
499.4
|
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
in millions
|
||||||
|
|
|
|
||||
Net cash provided by operating activities of our continuing operations
|
$
|
1,320.4
|
|
|
$
|
551.7
|
|
Excess tax benefits from share-based compensation
|
—
|
|
|
1.3
|
|
||
Cash payments for direct acquisition and disposition costs
|
11.2
|
|
|
8.4
|
|
||
Capital expenditures
|
(735.0
|
)
|
|
(499.4
|
)
|
||
Principal payments on vendor financing obligations
|
(220.8
|
)
|
|
(37.0
|
)
|
||
Principal payments on certain capital leases
|
(46.4
|
)
|
|
(3.1
|
)
|
||
Free cash flow
|
$
|
329.4
|
|
|
$
|
21.9
|
|
|
Payments due during:
|
|
Total
|
||||||||||||||||||||||||||||
|
Remainder
of
2014
|
|
Year ending December 31,
|
|
|||||||||||||||||||||||||||
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
|
||||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt (excluding interest)
|
$
|
3,059.6
|
|
|
$
|
151.4
|
|
|
$
|
523.8
|
|
|
$
|
1,464.0
|
|
|
$
|
1,590.5
|
|
|
$
|
5,066.3
|
|
|
$
|
30,611.9
|
|
|
$
|
42,467.5
|
|
Capital leases (excluding interest)
|
186.0
|
|
|
197.7
|
|
|
154.4
|
|
|
111.1
|
|
|
88.4
|
|
|
81.5
|
|
|
1,022.8
|
|
|
1,841.9
|
|
||||||||
Network and connectivity commitments
|
285.7
|
|
|
332.3
|
|
|
274.8
|
|
|
255.0
|
|
|
133.5
|
|
|
99.4
|
|
|
1,187.6
|
|
|
2,568.3
|
|
||||||||
Programming commitments
|
401.7
|
|
|
418.6
|
|
|
298.8
|
|
|
145.0
|
|
|
38.4
|
|
|
0.4
|
|
|
—
|
|
|
1,302.9
|
|
||||||||
Purchase commitments
|
754.3
|
|
|
156.7
|
|
|
67.7
|
|
|
11.4
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
|
993.9
|
|
||||||||
Operating leases
|
138.0
|
|
|
154.7
|
|
|
128.4
|
|
|
103.1
|
|
|
67.9
|
|
|
55.9
|
|
|
270.2
|
|
|
918.2
|
|
||||||||
Other commitments
|
335.3
|
|
|
275.9
|
|
|
186.6
|
|
|
139.2
|
|
|
82.8
|
|
|
31.7
|
|
|
38.4
|
|
|
1,089.9
|
|
||||||||
Total (a)
|
$
|
5,160.6
|
|
|
$
|
1,687.3
|
|
|
$
|
1,634.5
|
|
|
$
|
2,228.8
|
|
|
$
|
2,005.3
|
|
|
$
|
5,335.2
|
|
|
$
|
33,130.9
|
|
|
$
|
51,182.6
|
|
Projected cash interest payments on debt and capital lease obligations (b)
|
$
|
1,743.7
|
|
|
$
|
2,357.5
|
|
|
$
|
2,343.0
|
|
|
$
|
2,288.2
|
|
|
$
|
2,156.9
|
|
|
$
|
2,001.5
|
|
|
$
|
4,250.7
|
|
|
$
|
17,141.5
|
|
(a)
|
The commitments reflected in this table do not reflect any liabilities that are included in our
March 31, 2014
condensed consolidated balance sheet other than debt and capital lease obligations. Our liability for uncertain tax positions in the various jurisdictions in which we operate ($371.5 million
at
March 31, 2014
) 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 and contractual maturities in effect as of
March 31, 2014
. 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, discounts or premiums, all of which affect our overall cost of borrowing.
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
March 31, 2014
|
|
December 31, 2013
|
||
Spot rates:
|
|
|
|
||
Euro
|
0.7261
|
|
|
0.7252
|
|
British pound sterling
|
0.5995
|
|
|
0.6036
|
|
Swiss franc
|
0.8842
|
|
|
0.8886
|
|
Hungarian forint
|
223.23
|
|
|
215.62
|
|
Polish zloty
|
3.0241
|
|
|
3.0135
|
|
Czech koruna
|
19.931
|
|
|
19.828
|
|
Romanian lei
|
3.2385
|
|
|
3.2434
|
|
Chilean peso
|
549.42
|
|
|
525.45
|
|
|
Three months ended
|
||||
|
March 31,
|
||||
|
2014
|
|
2013
|
||
Average rates:
|
|
|
|
||
Euro
|
0.7296
|
|
|
0.7575
|
|
British pound sterling
|
0.6041
|
|
|
0.6453
|
|
Swiss franc
|
0.8924
|
|
|
0.9304
|
|
Hungarian forint
|
224.63
|
|
|
224.55
|
|
Polish zloty
|
3.0522
|
|
|
3.1461
|
|
Czech koruna
|
20.021
|
|
|
19.353
|
|
Romanian lei
|
3.2845
|
|
|
3.3216
|
|
Chilean peso
|
552.13
|
|
|
472.45
|
|
(i)
|
an instantaneous increase (decrease) of 10% in the value of the British pound sterling relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
Virgin Media
cross-currency and interest rate derivative contracts by approximately
£532 million
(
$887 million
);
|
(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
Virgin Media
cross-currency and interest rate derivative contracts by approximately
£64 million
(
$107 million
); and
|
(iii)
|
an instantaneous increase in
Virgin Media
’s credit spread of 50 basis points (0.50%) would have increased the
|
(i)
|
an instantaneous increase (decrease) of 10% in the value of the Swiss franc, Polish zloty, Hungarian forint, Czech koruna and Chilean peso relative to the euro would have decreased (increased) the aggregate fair value of the
UPC Broadband Holding
cross-currency and interest rate derivative contracts by approximately
€389 million
(
$536 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 Broadband Holding
cross-currency and interest rate derivative contracts by approximately
€251 million
(
$346 million
);
|
(iii)
|
an instantaneous increase (decrease) of 10% in the value of the Swiss franc, Chilean peso, and Romanian lei relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
UPC Broadband Holding
cross-currency and interest rate derivative contracts by approximately
€143 million
(
$197 million
);
|
(iv)
|
an instantaneous increase in the relevant base rate of 50 basis points (0.50%) would have increased the aggregate fair value of the
UPC Broadband Holding
cross-currency and interest rate derivative contracts by approximately
€110 million
(
$151 million
) and, conversely, a decrease of 50 basis points would have decreased the aggregate fair value by approximately
€115 million
(
$158 million
); and
|
(v)
|
an instantaneous increase (decrease) in
UPC Broadband Holding
’s credit spread of 50 basis points (0.50%) would have increased (decreased) the aggregate fair value of the
UPC Broadband Holding
cross-currency and interest rate derivative contracts by approximately
€17 million
(
$23 million
).
|
|
Payments (receipts) due during:
|
|
Total
|
||||||||||||||||||||||||||||
|
Remainder
of
2014
|
|
Year ending December 31,
|
|
|||||||||||||||||||||||||||
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
|
|||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||
Projected derivative cash payments (receipts), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-related (a)
|
$
|
241.4
|
|
|
$
|
429.5
|
|
|
$
|
376.8
|
|
|
$
|
243.8
|
|
|
$
|
205.7
|
|
|
$
|
104.6
|
|
|
$
|
157.3
|
|
|
$
|
1,759.1
|
|
Principal-related (b)
|
(37.6
|
)
|
|
266.5
|
|
|
36.6
|
|
|
136.6
|
|
|
39.6
|
|
|
20.1
|
|
|
376.0
|
|
|
837.8
|
|
||||||||
Other (c)
|
51.5
|
|
|
62.6
|
|
|
(133.4
|
)
|
|
(121.2
|
)
|
|
(70.2
|
)
|
|
—
|
|
|
—
|
|
|
(210.7
|
)
|
||||||||
Total
|
$
|
255.3
|
|
|
$
|
758.6
|
|
|
$
|
280.0
|
|
|
$
|
259.2
|
|
|
$
|
175.1
|
|
|
$
|
124.7
|
|
|
$
|
533.3
|
|
|
$
|
2,386.2
|
|
(a)
|
Includes (i) the cash flows of our interest rate cap, 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 contracts.
|
(c)
|
Includes amounts related to our equity-related derivative instruments and, to a lesser extent, our 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
Sumitomo Collar Loan
and
Ziggo Collar Loan
.
|
Item 4.
|
CONTROLS AND PROCEDURES
|
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
(c)
|
Issuer Purchases of Equity Securities
|
Period
|
|
Total number of shares purchased
|
|
Average price
paid per share (a)
|
|
Total number of
shares purchased as part of publicly
announced plans
or programs
|
|
Approximate
dollar value of
shares that may
yet be purchased
under the plans or programs
|
||||
|
|
|
|
|
|
|
|
|
||||
January 1, 2014 through January 31, 2014:
|
|
|
|
|
|
|
|
|||||
Class A
|
107,900
|
|
|
$
|
41.53
|
|
|
107,900
|
|
|
(b)
|
|
Class C
|
1,758,500
|
|
|
$
|
41.14
|
|
|
1,758,500
|
|
|
(b)
|
|
February 1, 2014 through February 28, 2014:
|
|
|
|
|
|
|
|
|||||
Class A
|
203,900
|
|
|
$
|
41.56
|
|
|
203,900
|
|
|
(b)
|
|
Class C
|
1,898,500
|
|
|
$
|
41.29
|
|
|
1,898,500
|
|
|
(b)
|
|
March 1, 2014 through March 31, 2014:
|
|
|
|
|
|
|
|
|||||
Class A
|
2,567,480
|
|
|
$
|
42.78
|
|
|
2,567,480
|
|
|
(b)
|
|
Class C
|
2,813,980
|
|
|
$
|
41.52
|
|
|
2,813,980
|
|
|
(b)
|
|
Total — January 1, 2014 through March 31, 2014:
|
|
|
|
|
|
|
|
|||||
Class A
|
2,879,280
|
|
|
$
|
42.65
|
|
|
2,879,280
|
|
|
(b)
|
|
Class C
|
6,470,980
|
|
|
$
|
41.35
|
|
|
6,470,980
|
|
|
(b)
|
(a)
|
Average price paid per share includes direct acquisition costs and the effects of derivative instruments, where applicable.
|
(b)
|
At
March 31, 2014
, the remaining amount authorized for share repurchases was
$3,133.9 million
.
|
Item 6.
|
EXHIBITS
|
4 — Instruments Defining the Rights of Securities Holders, including Indentures:
|
|||
|
|
||
4.1
|
|
|
Indenture, dated January 24, 2014, between VTR Finance B.V., the Bank of New York Mellon, London Branch, as trustee and security agent, and the Bank of New York Mellon as paying agent, registrar and transfer agent (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed January 24, 2014 (File No. 001-35961)).
|
|
|
|
|
4.2
|
|
|
Acquisition Facilities Agreement, dated January 27, 2014, as amended and restated by a Supplemental Agreement dated February 10, 2014 (the Holdco VII Facilities Agreement), by and among LGE Holdco VII B.V. as Original Borrower and Original Guarantor, Bank of America Merrill Lynch International Limited and Credit Suisse AG, London Branch, as Global Coordinators, certain banks and financial institutions as Bookrunners, certain banks and financial institutions, as Mandated Lead Arrangers, The Bank of Nova Scotia as Facility Agent, ING Bank N.V. as Security Agent and the banks and financial institutions listed therein as lenders (incorporated by reference to Exhibit 4.71 to the Registrant’s Annual Report on Form 10-K/A filed February 13, 2014 (File No. 001-35961) (the 2013 10-K/A)).
|
|
|
||
4.3
|
|
|
High Yield Bridge Facilities Agreement, dated January 27, 2014, by and among Holdco VI B.V. as Original Borrower, Bank of America Merrill Lynch International Limited and Credit Suisse AG, London Branch, as Global Coordinators, certain banks and financial institutions as Bookrunners, certain banks and financial institutions as Mandated Lead Arrangers, Bank of America Merrill Lynch International Limited as Facility Agent and as Security Agent and the lenders listed therein (incorporated by reference to Exhibit 4.72 to the 2013 10-K/A).
|
|
|
|
|
4.4
|
|
|
Second Supplemental Indenture, dated as of March 3, 2014, among Virgin Media Inc., the Registrant and the Bank of New York Mellon as trustee to the Indenture, dated as of April 16, 2008, as amended and supplemented, for the Virgin Media 6.5% Convertible Senior Notes due 2016.*
|
|
|
|
|
4.5
|
|
|
Registration Agreement, dated as of March 14, 2014, by and between the Registrant and Inversiones Corp Comm 2 SpA (incorporated by reference to Exhibit 4.2 to the Registrant’s Registration Statement on Form S-3 filed March 14, 2014 (File No. 333-194555)).
|
|
|
|
|
4.6
|
|
|
Indenture, dated March 28, 2014 between Virgin Media Secured Finance PLC, The Bank of New York Mellon, London Branch, as trustee, transfer agent and principal paying agent, The Bank of New York Mellon as paying agent, and The Bank of New York Mellon (Luxembourg) S.A., as registrar (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K/A filed April 3, 2014 (File No. 001-35961)).
|
|
|
|
|
4.7
|
|
|
Telenet Additional Facility W Accession Agreement, dated April 9, 2014, among, inter alia, Telenet International Finance S.à.r.l. as Borrower, Telenet NV and Telenet International Finance S.à.r.l. as Guarantors, The Bank of Nova Scotia as Facility Agent, KBC Bank NV as Security Agent and the financial institutions listed therein as Additional Facility W Lenders, under the €2,300,000,000 Credit Agreement, originally dated August 1, 2007, as amended and restated from time to time, among Telenet Bidco NV (now known as Telenet NV) as borrower, Toronto Dominion (Texas) LLC as facility agent, the parties listed therein as original guarantors, ABN AMRO Bank N.V., BNP Paribas S.A. and J.P. Morgan PLC as mandated lead arrangers, KBC Bank NV as security agent, and the financial institutions listed therein as initial original lenders (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed April 15, 2014 (File No. 001-35961) (the April 15, 2014 8-K)).
|
|
|
|
|
4.8
|
|
|
Telenet Additional Facility Y Accession Agreement, dated April 9, 2014, among, inter alia, Telenet International Finance S.à.r.l. as Borrower, Telenet NV and Telenet International Finance S.à.r.l. as Guarantors, The Bank of Nova Scotia as Facility Agent, KBC Bank NV as Security Agent and the financial institutions listed therein as Additional Facility Y Lenders, under the €2,300,000,000 Credit Agreement, originally dated August 1, 2007, as amended and restated from time to time, among Telenet Bidco NV (now known as Telenet NV) as borrower, Toronto Dominion (Texas) LLC as facility agent, the parties listed therein as original guarantors, ABN AMRO Bank N.V., BNP Paribas S.A. and J.P. Morgan PLC as mandated lead arrangers, KBC Bank NV as security agent, and the financial institutions listed therein as initial original lenders (incorporated by reference to Exhibit 4.2 to the April 15, 2014 8-K).
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document*
|
|
|
|
||
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document*
|
|
|
|
||
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase*
|
|
|
|
||
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document*
|
|
|
|
||
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document*
|
*
|
Filed herewith
|
**
|
Furnished herewith
|
|
|
|
LIBERTY GLOBAL PLC
|
|
|
|
|
Dated:
|
May 6, 2014
|
|
/s/ M
ICHAEL
T. F
RIES
|
|
|
|
Michael T. Fries
President and Chief Executive Officer
|
|
|
|
|
Dated:
|
May 6, 2014
|
|
/s/ C
HARLES
H.R. B
RACKEN
|
|
|
|
Charles H.R. Bracken
Executive Vice President and Co-Chief
Financial Officer (Principal Financial Officer)
|
|
|
|
|
Dated:
|
May 6, 2014
|
|
/s/ B
ERNARD
G. D
VORAK
|
|
|
|
Bernard G. Dvorak
Executive Vice President and Co-Chief
Financial Officer (Principal Accounting Officer)
|
4 — Instruments Defining the Rights of Securities Holders, including Indentures:
|
|||
|
|
||
4.1
|
|
|
Indenture, dated January 24, 2014, between VTR Finance B.V., the Bank of New York Mellon, London Branch, as trustee and security agent, and the Bank of New York Mellon as paying agent, registrar and transfer agent (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed January 24, 2014 (File No. 001-35961)).
|
|
|
|
|
4.2
|
|
|
Acquisition Facilities Agreement dated January 27, 2014, as amended and restated by a Supplemental Agreement dated February 10, 2014 (the Holdco VII Facilities Agreement), by and among LGE Holdco VII B.V. as Original Borrower and Original Guarantor, Bank of America Merrill Lynch International Limited and Credit Suisse AG, London Branch, as Global Coordinators, certain banks and financial institutions as Bookrunners, certain banks and financial institutions, as Mandated Lead Arrangers, The Bank of Nova Scotia as Facility Agent, ING Bank N.V. as Security Agent and the banks and financial institutions listed therein as lenders (incorporated by reference to Exhibit 4.71 to the Registrant’s Annual Report on Form 10-K/A filed February 13, 2014 (File No. 001-35961) (the 2013 10-K/A)).
|
|
|
||
4.3
|
|
|
High Yield Bridge Facilities Agreement, dated January 27, 2014, by and among Holdco VI B.V. as Original Borrower, Bank of America Merrill Lynch International Limited and Credit Suisse AG, London Branch, as Global Coordinators, certain banks and financial institutions as Bookrunners, certain banks and financial institutions as Mandated Lead Arrangers, Bank of America Merrill Lynch International Limited as Facility Agent and as Security Agent and the lenders listed therein (incorporated by reference to Exhibit 4.72 to the 2013 10-K/A).
|
|
|
|
|
4.4
|
|
|
Second Supplemental Indenture, dated as of March 3, 2014, among Virgin Media Inc., the Registrant and the Bank of New York Mellon as trustee to the Indenture, dated as of April 16, 2008, as amended and supplemented, for the Virgin Media 6.5% Convertible Senior Notes due 2016.*
|
|
|
|
|
4.5
|
|
|
Registration Agreement, dated as of March 14, 2014, by and between the Registrant and Inversiones Corp Comm 2 SpA (incorporated by reference to Exhibit 4.2 to the Registrant’s Registration Statement on Form S-3 filed March 14, 2014 (File No. 333-194555)).
|
|
|
||
4.6
|
|
|
Indenture, dated March 28, 2014 between Virgin Media Secured Finance PLC, The Bank of New York Mellon, London Branch, as trustee, transfer agent and principal paying agent, The Bank of New York Mellon as paying agent, and The Bank of New York Mellon (Luxembourg) S.A., as registrar (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K/A filed April 3, 2014 (File No. 001-35961)).
|
|
|
|
|
4.7
|
|
|
Telenet Additional Facility W Accession Agreement, dated April 9, 2014, among, inter alia, Telenet International Finance S.à.r.l. as Borrower, Telenet NV and Telenet International Finance S.à.r.l. as Guarantors, The Bank of Nova Scotia as Facility Agent, KBC Bank NV as Security Agent and the financial institutions listed therein as Additional Facility W Lenders, under the €2,300,000,000 Credit Agreement, originally dated August 1, 2007, as amended and restated from time to time, among Telenet Bidco NV (now known as Telenet NV) as borrower, Toronto Dominion (Texas) LLC as facility agent, the parties listed therein as original guarantors, ABN AMRO Bank N.V., BNP Paribas S.A. and J.P. Morgan PLC as mandated lead arrangers, KBC Bank NV as security agent, and the financial institutions listed therein as initial original lenders (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed April 15, 2014 (File No. 001-35961) (the April 15, 2014 8-K)).
|
|
|
|
|
4.8
|
|
|
Telenet Additional Facility Y Accession Agreement, dated April 9, 2014, among, inter alia, Telenet International Finance S.à.r.l. as Borrower, Telenet NV and Telenet International Finance S.à.r.l. as Guarantors, The Bank of Nova Scotia as Facility Agent, KBC Bank NV as Security Agent and the financial institutions listed therein as Additional Facility Y Lenders, under the €2,300,000,000 Credit Agreement, originally dated August 1, 2007, as amended and restated from time to time, among Telenet Bidco NV (now known as Telenet NV) as borrower, Toronto Dominion (Texas) LLC as facility agent, the parties listed therein as original guarantors, ABN AMRO Bank N.V., BNP Paribas S.A. and J.P. Morgan PLC as mandated lead arrangers, KBC Bank NV as security agent, and the financial institutions listed therein as initial original lenders (incorporated by reference to Exhibit 4.2 to the April 15, 2014 8-K).
|
|
|
|
4.9
|
|
|
Telenet Additional Facility X Accession Agreement, dated April 11, 2014, among, inter alia, Telenet International Finance S.à.r.l. as Borrower, Telenet NV and Telenet International Finance S.à.r.l. as Guarantors, The Bank of Nova Scotia as Facility Agent, KBC Bank NV as Security Agent and the financial institutions listed therein as Additional Facility X Lenders, under the €2,300,000,000 Credit Agreement, originally dated August 1, 2007, as amended and restated from time to time, among Telenet Bidco NV (now known as Telenet NV) as borrower, Toronto Dominion (Texas) LLC as facility agent, the parties listed therein as original guarantors, ABN AMRO Bank N.V., BNP Paribas S.A. and J.P. Morgan PLC as mandated lead arrangers, KBC Bank NV as security agent, and the financial institutions listed therein as initial original lenders (incorporated by reference to Exhibit 4.3 to the April 15, 2014 8-K).
|
4.10
|
|
|
Virgin Additional Facility D Accession Agreement, dated April 17, 2014, among, inter alia, Virgin Media SFA Finance Limited as Borrower, certain other subsidiaries of Virgin Media Inc., The Bank of Nova Scotia as Facility Agent and the financial institutions listed therein as Additional Facility D Lenders, under the Senior Facilities Agreement, originally dated as of June 7, 2013, as amended, among, among others, Virgin Media Finance PLC, certain other subsidiaries of Virgin Media Inc. and the lenders thereto (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed April 23, 2014 (File No. 001-35961) (the April 23, 2014 8-K)).
|
|
|
|
|
4.11
|
|
|
Virgin Additional Facility E Accession Agreement, dated April 17, 2014, among, inter alia, Virgin Media SFA Finance Limited as Borrower, certain other subsidiaries of Virgin Media Inc., The Bank of Nova Scotia as Facility Agent and the financial institutions listed therein as Additional Facility E Lenders, under the Senior Facilities Agreement, originally dated as of June 7, 2013, as amended, among, among others, Virgin Media Finance PLC, certain other subsidiaries of Virgin Media Inc. and the lenders thereto (incorporated by reference to Exhibit 4.2 to the April 23, 2014 8-K).
|
|
|
|
|
10 — Material Contracts:
|
|||
|
|
|
|
10.1
|
|
|
Liberty Global 2014 Incentive Plan (Effective March 1, 2014) (the Incentive Plan) (incorporated by reference to Appendix A to the Registrant’s Proxy Statement on Schedule 14A filed December 19, 2013 (File No. 001-35961)).
|
|
|
|
|
10.2
|
|
|
Liberty Global 2014 Nonemployee Director Incentive Plan (Effective March 1, 2014) (incorporated by reference to Appendix B to the Registrant’s Proxy Statement on Schedule 14A filed December 19, 2013 (File No. 001-35961)).
|
|
|
|
|
10.3
|
|
|
Merger Protocol, dated January 27, 2014, among LGE Holdco VII B.V., Ziggo N.V. and the Registrant (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed January 31, 2014 (File No. 001-35961)).
|
|
|
|
|
10.4
|
|
|
Liberty Global 2014 Performance Incentive Plan for executive officers under the Incentive Plan (a description of said plan is incorporated by reference to the description thereof included in Item 5.02(e) of the Registrant’s Current Report on Form 8-K filed April 4, 2014 (File No. 001-35961) (the April 2014 8-K)).
|
|
|
|
|
10.5
|
|
|
Liberty Global 2014 Annual Cash Performance Award Program for executive officers under the Incentive Plan (description of said plan is incorporated by reference to the description thereof included in Item 5.01(e) of the April 2014 8-K).
|
|
|
|
|
10.6
|
|
|
Form of Performance Share Units Agreement under the Incentive Plan.*
|
|
|
|
|
10.7
|
|
|
Employment Agreement, dated as of April 30, 2014, by and among the Registrant, Liberty Global, Inc. and Michael T. Fries.*
|
|
|
|
|
10.8
|
|
|
Form of Performance Grant Award Agreement under the Incentive Plan dated as of April 30, 2014, between the Registrant and Michael T. Fries.*
|
|
|
|
|
31 — Rule 13a-14(a)/15d-14(a) Certification:
|
|||
|
|
|
|
31.1
|
|
|
Certification of President and Chief Executive Officer*
|
|
|
|
|
31.2
|
|
|
Certification of Executive Vice President and Co-Chief Financial Officer (Principal Financial Officer)*
|
|
|
|
|
31.3
|
|
|
Certification of Executive Vice President and Co-Chief Financial Officer (Principal Accounting Officer)*
|
|
|
|
|
32 — Section 1350 Certification**
|
|||
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document*
|
|
|
|
||
101.SCH
|
|
XBRL Taxonomy Extension Schema Document*
|
|
|
|
||
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document*
|
|
|
|
||
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase*
|
|
|
|
||
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document*
|
|
|
|
||
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document*
|
*
|
Filed herewith
|
**
|
Furnished herewith
|
______________________
|
|
6.50% Convertible Senior Notes due 2016
|
VIRGIN MEDIA INC.
|
|
By: Authorized Signatory
|
LIBERTY GLOBAL PLC
|
|
By: Authorized Signatory
|
|
THE BANK OF NEW YORK MELLON,
as Trustee
|
|
By: Authorized Signatory
|
(i)
|
On March 31 during the Service Period, 50% of the Earned Performance Share Units shall become vested; and
|
(ii)
|
On September 30 during the Service Period, 50% of the Earned Performance Share Units shall become vested.
|
(1)
|
reduction of Executive’s Base Salary;
|
(2)
|
material reduction in the amount of the Annual Bonus which Executive is eligible to earn;
|
(3)
|
reduction in the target equity value of an Annual Equity Grant to the Executive from the target equity value of the Annual Equity Grant granted to the Executive by the Company for the prior year or the failure of the Compensation Committee for two (2) consecutive years to grant the Executive an Annual Equity Grant with a target equity value that is greater than the target equity value for the prior year’s Annual Equity Grant;
|
(4)
|
relocation of Executive’s primary office at the Company to a facility or location that is more than thirty-five (35) miles away from Executive’s primary office location immediately prior to such relocation;
|
(5)
|
a material and adverse change to the Executive’s position, title, duties, authority reporting requirements, or responsibilities; including, without limitation, the Executive (A) no longer being the chief executive officer of a publicly traded entity or (B) being the chief executive officer of an entity that is the subsidiary of another entity (and not also the chief executive officer of the ultimate parent entity);
|
(6)
|
the Executive ceasing to be a member of the Executive Committee of the Board (or of a successor committee of the Board that has similar powers and responsibilities), unless the Executive is no longer a member of the Board or there is no longer an Executive Committee of the Board (or a successor committee of the Board with similar powers and responsibilities);
|
(7)
|
the Company’s delivery to the Executive of a notice of intent not to renew the then Initial Term or the Renewal Term, as applicable, pursuant to Paragraph 2;
|
(8)
|
the Company’s failure to re-nominate the Executive to serve on the Board, the Company removing the Executive from the Board or the failure to re-elect the Executive to the Board;
|
(9)
|
following a Change in Control, the Executive’s target total direct compensation (including cash and equity incentive opportunities) is not increased such that it is at or above the 75
th
percentile for chief executive officers at peer companies of the successor entity (based on the peer group used by such successor entity following consummation of the Change in Control) or, if no such peer group has been determined, at or above the 75
th
percentile for chief executive officers of companies of comparable size and industry;
provided
that in no event shall such target total direct compensation be less than the 75
th
percentile for chief executive officers of the comparator group set forth in the Company’s most recently filed annual proxy statement prior to the date of the consummation of the Change in Control; or
|
(10)
|
a material breach of this Agreement.
|
(1)
|
(A) If the aggregate of all amounts and benefits due to the Executive under this Agreement or under any other arrangement with the Company would, if received by the Executive in full and valued under Section 280G of the Code, constitute “parachute payments” as defined in and under Section 280G of the Code (collectively, “
280G Benefits
”), and if (B) such aggregate would, if reduced by all federal, state and local taxes applicable thereto, including the excise tax imposed pursuant to Section 4999 of the Code, be less than the amount the Executive would receive, after all taxes, if the Executive received aggregate 280G Benefits equal (as valued under Section 280G of the Code) to three times the Executive’s “base amount” as defined in and under Section 280G of the Code, less $1.00, then (C) such 280G Benefits shall be reduced by reducing payments and benefits to the extent necessary so that the aggregate 280G Benefits received by the Executive will not constitute parachute payments with such reduction to occur in the following order: (w) any cash severance payments under subparagraph 9(f), (x) any cash payments under subparagraph 9(c)(ii) and 9(c)(iii), (y) any other cash payments that would be made upon a termination of the Executive’s employment, beginning with payments that would be made last in time and (z) any accelerated vesting of outstanding share awards, with the vesting of any outstanding share awards for which the amount considered contingent on the change in ownership or control is determined in accordance with Treasury Regulation 1.280G-1, Q&A 24(c) to be reduced last in time. The determinations with respect to this subparagraph 12(h)(ii) shall be made by an independent auditor (the “
Auditor
”) paid by the Company. The Auditor shall be a nationally recognized certified public accounting firm or other professional organization that is a certified public accounting firm recognized as an expert in determinations and calculations for purposes of Section 280G of the Code that is selected by the Executive and reasonably acceptable to the Company (as it exists prior to a Change in Control) for purposes of making the applicable determinations hereunder
|
(2)
|
It is possible that after the determinations and selections made pursuant to this subparagraph 12(h)(ii), the Executive will receive 280G Benefits that are, in the aggregate, either more or less than the amount provided under this subparagraph 12(h)(ii) (hereafter referred to as an “
Excess Payment
” or “
Underpayment
,” respectively). If it is established, pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and conclusively resolved, that an Excess Payment has been made, then the Executive shall promptly pay an amount equal to the Excess Payment to the Company, together with interest on such amount at the applicable federal rate (as defined in and under Section 1274(d) of the Code) from the date of the Executive’s receipt of such Excess Payment until the date of such payment. In the event that it is determined by the Auditor upon request by a Party, that an Underpayment has occurred, the Company shall promptly pay an amount equal to the Underpayment to the Executive, together with interest on such amount at the applicable federal rate from the date such amount would have been paid to the Executive had the provisions of this subparagraph 12(h)(ii) not been applied until the date of such payment.
|
(3)
|
The Company agrees that, in connection with making determinations under this subparagraph 12(h)(ii), it shall instruct the Auditor to take into account the value of any reasonable compensation for services to be rendered by the Executive before or after the Change in Control in connection with making determinations with respect to Section 280G and/or Section 4999 of the Code, including the non-competition provisions applicable to the Executive under subparagraph 10(b) of this Agreement and any other non-competition provisions that may apply to the Executive, and the Company agrees to fully cooperate in the valuation of any such services, including any non-competition provisions.
|
If to the Company:
|
Liberty Global plc
Attn: General Counsel
12300 Liberty Boulevard
Englewood, CO 80112
Tel: 303-220-6600
Fax: 303-220-6641
|
|
|
With a copy to:
|
Baker Botts LLP
One Shell Plaza 910 Louisiana Street Attention: Gail Stewart, Esq. Houston, Texas 77002-4995 Tel: 713-229-1234
Fax: 713-229-1522
|
If to the Executive:
|
Michael T. Fries
At the home address then on file with the Company
|
|
|
With a copy to:
|
Fried, Frank, Harris, Shriver & Jacobson LLP
One New York Plaza
Attention: Donald P. Carleen, Esq.
New York, NY 10004
Tel: 212-859-8000
Fax: 212-859-4000
|
Michael T. Fries
|
|
/s/ Michael T. Fries
|
|
|
|
LIBERTY GLOBAL PLC
|
|
|
By:
|
/s/ Bryan H. Hall
|
|
Its:
|
Authorized Signatory
|
|
LIBERTY GLOBAL, INC.
|
|
|
By:
|
/s/ Bryan H. Hall
|
|
Its:
|
EVP, Secretary and General Counsel
|
|
1.
|
I, individually and on behalf of my successors, heirs and assigns, release, waive and discharge Employer, and any of its parents, subsidiaries, or otherwise affiliated corporations, partnerships or business enterprises, and their respective present and former directors, officers, shareholders, employees, and assigns (hereinafter, “Released Parties”), from any and all causes of action, claims, charges, demands, losses, damages, costs, attorneys’ fees and liabilities of any kind that I may have or claim to have relating to my employment relationship with the Employer, including my service as a director of the Company, or the termination thereof, relating to or arising out of any act of commission or omission from the beginning of time through the date of my execution of this Agreement; provided, however, nothing contained herein shall release any claim I may have: (i) for indemnification under Employer’s constituent documents or any other agreement that I have with any of the Released Parties; (ii) for unemployment compensation benefits; (iii) to enforce the obligations of Employer set forth in the Employment Agreement; (iv) to vested amounts held in my name in accordance with the conditions and terms of any plan, program or arrangement sponsored or maintained by any of the Released Parties, including, without limitation the Plan and any nonqualified deferred compensation plan; (v) to outstanding equity awards granted to me (collectively, the “Grants”), which shall be subject to the terms and conditions of the applicable incentive plan and the agreement evidencing the respective Grant, as modified by the Employment Agreement; (vi) to benefits under any employee benefit plan maintained or sponsored by any of the Released Parties, including health care continuation under COBRA; (vii) to rights as a shareholder of the Company; or (viii) to rights under my letter agreement with the Malone LG 2013 Charitable Remainder Unitrust, dated as of February 13, 2014.
|
2.
|
This release includes, but is not limited to, the following claims, and shall apply to claims made in the United States, and/or the United Kingdom where such a claim can be made in the United Kingdom:
|
a.
|
Claims under federal, state, local or foreign laws prohibiting age, sex, race, national origin, disability, religion, sexual orientation, marital status, retaliation, or any other form of discrimination, or mistreatment, such as, but not limited to, the Age Discrimination in Employment Act, (29 U.S.C. §621
et
seq
), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, 42 U.S.C. §1981, §1985, §1986, the Americans with Disabilities Act, and the National Labor Relations Act, as amended, 29 U.S.C. §151,
et
seq
;
|
b.
|
Intentional or negligent infliction of emotional distress, defamation, invasion of privacy, and other tort claims;
|
c.
|
Breach of express or implied contract claims;
|
d.
|
Promissory estoppel claims;
|
e.
|
Retaliatory discharge claims;
|
f.
|
Wrongful discharge claims;
|
g.
|
Breach of any express or implied covenant of good faith and fair dealing;
|
h.
|
Constructive discharge;
|
i.
|
Claims arising out of or related to any applicable federal, state or foreign constitutions;
|
j.
|
Claims for compensation, including without limitation, any wages, bonus payments, on call pay, overtime pay, commissions, and any other claim pertaining to local, state, federal or foreign wage and hour or other compensation laws, such as, but not limited to, the Worker Adjustment and Retraining Notification Act, 29 U.S.C. §2101,
et
seq
, and the Fair Labor Standards Act, as amended, 29 U.S.C. §201,
et
seq.
;
|
k.
|
Fraud, misrepresentation, and/or fraudulent inducement;
|
l.
|
Claims made under or pursuant to any severance plan or program maintained by any of the Released Parties;
|
m.
|
Claims of breach of any data privacy or similar laws in connection with the handling or investigation of any whistleblower complaints or any other investigation by Employer or its representatives; and
|
n.
|
Other legal and equitable claims regarding my employment or the termination of my employment, other than as set forth herein.
|
3.
|
I hereby warrant and represent that I have not filed or caused to be filed any charge or claim against any Released Party with any administrative agency, court of law or other tribunal. I agree that I am not entitled to any remedy or relief if I were to pursue any such claim, complaint or charge.
|
4.
|
I hereby acknowledge that I am age forty (40) or older.
|
5.
|
BY SIGNING THIS AGREEMENT, I ACKNOWLEDGE THAT EMPLOYER HAS ADVISED ME TO DISCUSS THIS WAIVER AND RELEASE AGREEMENT WITH AN ATTORNEY BEFORE SIGNING THIS AGREEMENT. I acknowledge and agree that the Released Parties are not responsible for any of my costs, expenses, and attorney’s fees, if any, incurred in connection with any claim or the review and signing of this Agreement.
|
6.
|
I acknowledge and state that I have been given a period of at least twenty-one (21) days in which to consider the terms of this Agreement.
|
7.
|
I understand that I have the right to revoke this Agreement at any time within
seven (7) days
after signing it, by providing
written notice
to the Company, Attn. General Counsel at 12300 Liberty Boulevard, Englewood, CO 80112, and this Agreement is not effective or enforceable until the seven (7) day revocation period has expired. In the event I revoke this Agreement, the Company shall have no obligation to provide me the Benefits. I understand that failure to revoke my acceptance of this Agreement will result in this Agreement being permanent and irrevocable.
|
8.
|
I agree that this Agreement is a compromise of claims and charges and/or potential claims and charges which are or may be in dispute, and that this Agreement does not constitute an admission of liability or an admission against interest of any Released Party.
|
9.
|
This Agreement is made and is effective as of the date first written below.
|
10.
|
This Agreement becomes null and void and has no further force or effect if Employer does not receive the executed Agreement by 5:00 p.m., Mountain Time, __________, 20___.
|
(i)
|
On March 15, 2015, 1/3 of the Earned Performance Share Units shall become vested;
|
(ii)
|
On March 15, 2016, 1/3 of the Earned Performance Share Units shall become vested; and
|
(iii)
|
On March 15, 2017, 1/3 of the Earned Performance Share Units shall become vested;
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Liberty Global plc;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this quarterly report based on such evaluation; and
|
d)
|
Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Michael T. Fries
|
|
Michael T. Fries
|
|
President and Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Liberty Global plc;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this quarterly report based on such evaluation; and
|
d)
|
Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Charles H.R. Bracken
|
|
Charles H.R. Bracken
|
|
Executive Vice President and Co-Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Liberty Global plc;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this quarterly report based on such evaluation; and
|
d)
|
Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Bernard G. Dvorak
|
|
Bernard G. Dvorak
|
|
Executive Vice President and Co-Chief Financial Officer
|
|
(Principal Accounting Officer)
|
|
Dated:
|
May 6, 2014
|
|
/s/ Michael T. Fries
|
|
|
|
Michael T. Fries
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
Dated:
|
May 6, 2014
|
|
/s/ Charles H.R. Bracken
|
|
|
|
Charles H.R. Bracken
|
|
|
|
Executive Vice President and Co-Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
Dated:
|
May 6, 2014
|
|
/s/ Bernard G. Dvorak
|
|
|
|
Bernard G. Dvorak
|
|
|
|
Executive Vice President and Co-Chief Financial Officer
|
|
|
|
(Principal Accounting Officer)
|