Segment Reporting

We generally identify our reportable segments as those consolidated subsidiaries that represent 10% or more of our revenue, operating cash flow (as defined below) or total assets. In certain cases, we may elect to include an operating segment in our segment disclosure that does not meet the above-described criteria for a reportable segment. We evaluate performance and make decisions about allocating resources to our operating segments based on financial measures such as revenue and operating cash flow (as defined below). In addition, we review non-financial measures such as subscriber growth, as appropriate.

Operating cash flow is the primary measure used by our chief operating decision maker to evaluate segment operating performance. Operating cash flow is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of annual and other incentive compensation plans. As we use the term, operating cash flow is defined as revenue less operating and SG&A expenses (excluding share-based compensation, depreciation and amortization, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items). Other operating items include (a) gains and losses on the disposition of long-lived assets, (b) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (c) other acquisition-related items, such as gains and losses on the settlement of contingent consideration. Our internal decision makers believe operating cash flow is a meaningful measure and is superior to available GAAP measures because it represents a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (1) readily view operating trends, (2) perform analytical comparisons and benchmarking between segments and (3) identify strategies to improve operating performance in the different countries in which we operate. We believe our operating cash flow measure is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measure may not be directly comparable to similar measures used by other public companies. Operating cash flow should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income, net earnings (loss), cash flow from operating activities and other GAAP measures of income or cash flows. A reconciliation of total segment operating cash flow to our earnings (loss) from continuing operations before income taxes is presented below.

During the second quarter of 2013, we began presenting our Belgium (Telenet) segment within our European Operations Division as a result of our decision to change how Telenet reports into our management structure. Segment information for all periods has been retrospectively revised to reflect this change and to present the Chellomedia Disposal Group as a discontinued operation. Unless otherwise noted, we present only the reportable segments of our continuing operations in the tables below. We have identified the following consolidated operating segments as our reportable segments:


•	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)

All of the reportable segments set forth above derive their revenue primarily from broadband communications services, including video, broadband internet and fixed-line telephony services. Most of our reportable segments also provide B2B services and certain of our reportable segments provide mobile services. At December 31, 2013, our operating segments in the European Operations Division provided broadband communications services in 12 European countries and DTH services to customers in the Czech Republic, Hungary, Romania and Slovakia through a Luxembourg-based organization that we refer to as “UPC DTH.” Our Other Western Europe segment includes our broadband communications operating segments in Austria and Ireland. Our Central and Eastern Europe segment includes our broadband communications operating segments in the Czech Republic, Hungary, Poland, Romania and Slovakia. The European Operations Division’s central and other category includes (i) the UPC DTH operating segment, (ii) costs associated with certain centralized functions, including billing systems, network operations, technology, marketing, facilities, finance and other administrative functions, and (iii) intersegment eliminations within the European Operations Division. In Chile, the VTR Group includes VTR GlobalCom, which provides video, broadband internet and fixed-line telephony services, and VTR Wireless, which provides mobile services through a third-party wireless access arrangement. Our corporate and other category includes (a) less significant consolidated operating segments that provide (1) broadband communications services in Puerto Rico and (2) programming and other services primarily in Europe and Latin America and (b) our corporate category. Intersegment eliminations primarily represent the elimination of intercompany transactions between our broadband communications and programming operations, primarily in Europe.

Performance Measures of Our Reportable Segments

The amounts presented below represent 100% of each of our reportable segment’s revenue and operating cash flow. As we have the ability to control Telenet, the VTR Group and Liberty Puerto Rico, we consolidate 100% of the revenue and expenses of these entities in our consolidated statements of operations despite the fact that third parties own significant interests in these entities. The noncontrolling owners’ interests in the operating results of Telenet, the VTR Group, Liberty Puerto Rico and other less significant majority-owned subsidiaries are reflected in net earnings or loss attributable to noncontrolling interests in our consolidated statements of operations.



	Year ended December 31,
	2013						2012						2011
	Revenue			Operating cash flow			Revenue			Operating cash flow			Revenue			Operating cash flow
	in millions
European Operations Division:
U.K. (Virgin Media) (a)	$	3,653.7		$	1,524.9		$	—		$	—		$	—		$	—
Germany (Unitymedia KabelBW)	2,559.2			1,541.1			2,311.0			1,364.3			1,450.0			863.7
Belgium (Telenet)	2,185.9			1,049.4			1,918.0			940.7			1,918.5			967.0
The Netherlands	1,242.4			721.7			1,229.1			737.1			1,273.4			755.3
Switzerland	1,332.1			778.3			1,259.8			717.9			1,282.6			721.9
Other Western Europe	898.7			445.3			848.4			407.7			893.3			418.7
Total Western Europe	11,872.0			6,060.7			7,566.3			4,167.7			6,817.8			3,726.6
Central and Eastern Europe	1,141.2			548.5			1,115.7			555.1			1,122.5			548.0
Central and other	130.4			(203.1		)	117.0			(161.6		)	122.7			(140.5		)
Total European Operations Division	13,143.6			6,406.1			8,799.0			4,561.2			8,063.0			4,134.1
Chile (VTR Group)	991.6			353.6			940.6			314.2			889.0			341.2
Corporate and other	374.3			(63.8		)	224.1			(83.1		)	213.6			(73.8		)
Intersegment eliminations (b)	(35.3		)	44.8			(32.9		)	38.6			(47.3		)	39.1
Total	$	14,474.2		$	6,740.7		$	9,930.8		$	4,830.9		$	9,118.3		$	4,440.6

______________


(a)	The amounts presented for 2013 reflect the post-acquisition revenue and operating cash flow of Virgin Media from June 8, 2013 through December 31, 2013.

(b)

The intersegment eliminations that are applicable to revenue are related primarily to transactions between our European Operations Division and our continuing programming operations. The intersegment eliminations that are applicable to operating cash flow are related to transactions between our European Operations Division and the Chellomedia Disposal Group, which eliminations will no longer be recorded following the completion of the Chellomedia Transaction on January 31, 2014.

The following table provides a reconciliation of total segment operating cash flow from continuing operations to loss from continuing operations before income taxes:



	Year ended December 31,
	2013			2012			2011
	in millions
Total segment operating cash flow from continuing operations	$	6,740.7		$	4,830.9		$	4,440.6
Share-based compensation expense	(300.7		)	(110.1		)	(129.4		)
Depreciation and amortization	(4,276.4		)	(2,661.5		)	(2,424.3		)
Release of litigation provision	146.0			—			—
Impairment, restructuring and other operating items, net	(297.5		)	(76.2		)	(64.0		)
Operating income	2,012.1			1,983.1			1,822.9
Interest expense	(2,286.9		)	(1,673.6		)	(1,453.7		)
Interest and dividend income	113.1			42.1			72.9
Realized and unrealized losses on derivative instruments, net	(1,020.4		)	(1,070.3		)	(59.9		)
Foreign currency transaction gains (losses), net	349.3			438.4			(566.6		)
Realized and unrealized gains (losses) due to changes in fair values of certain investments and debt, net	524.1			(10.2		)	(151.7		)
Losses on debt modification, extinguishment and conversion, net	(212.2		)	(213.8		)	(218.4		)
Other expense, net	(5.6		)	(4.6		)	(5.9		)
Loss from continuing operations before income taxes	$	(526.5	)	$	(508.9	)	$	(560.4	)

Balance Sheet Data of our Reportable Segments

Selected balance sheet data of our reportable segments is set forth below:



	Long-lived assets				Total assets
	December 31,				December 31,
	2013		2012		2013		2012
	in millions
European Operations Division:
U.K. (Virgin Media)	$	23,570.6	$	—	$	29,788.3	$	—
Germany (Unitymedia KabelBW)	10,754.7		10,626.4		11,968.2		10,960.2
Belgium (Telenet)	4,737.4		4,617.8		5,909.2		6,243.1
The Netherlands	2,496.5		2,378.3		2,845.3		2,676.6
Switzerland	4,745.7		4,685.6		5,173.5		5,032.9
Other Western Europe	1,967.6		1,886.9		2,121.8		1,952.7
Total Western Europe	48,272.5		24,195.0		57,806.3		26,865.5
Central and Eastern Europe	2,839.4		2,866.1		3,057.4		3,002.5
Central and other	522.8		365.3		1,709.1		1,420.9
Total European Operations Division	51,634.7		27,426.4		62,572.8		31,288.9
Chile (VTR Group)	1,139.7		1,363.3		1,628.9		1,680.3
Corporate and other	1,214.9		1,232.1		2,760.3		4,550.2
Total - continuing operations	53,989.3		30,021.8		66,962.0		37,519.4
Discontinued operation (a)	513.6		432.9		752.3		788.3
Total	$	54,502.9	$	30,454.7	$	67,714.3	$	38,307.7

______________


(a)	At December 31, 2013, the long-lived assets and total assets of the Chellomedia Disposal Group are presented in long-term assets of discontinued operation in our consolidated balance sheet.

Property and Equipment Additions of our Reportable Segments

The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or capital lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing and capital lease arrangements, see note 8.



	Year ended December 31,
	2013			2012			2011
	in millions
European Operations Division:
U.K. (Virgin Media) (a)	$	755.4		$	—		$	—
Germany (Unitymedia KabelBW)	543.4			559.5			371.0
Belgium (Telenet)	453.7			440.0			413.3
The Netherlands	242.4			221.8			231.8
Switzerland	230.9			222.2			235.2
Other Western Europe	147.6			145.1			193.7
Total Western Europe	2,373.4			1,588.6			1,445.0
Central and Eastern Europe	250.8			227.6			201.2
Central and other	276.8			165.4			177.8
Total European Operations Division	2,901.0			1,981.6			1,824.0
Chile (VTR Group)	188.5			243.4			270.8
Corporate and other	72.1			33.6			30.6
Property and equipment additions	3,161.6			2,258.6			2,125.4
Assets acquired under capital-related vendor financing arrangements	(573.5		)	(246.5		)	(101.4		)
Assets acquired under capital leases	(143.0		)	(63.1		)	(38.2		)
Changes in current liabilities related to capital expenditures	36.4			(80.7		)	(65.0		)
Total capital expenditures	$	2,481.5		$	1,868.3		$	1,920.8

______________


(a)	The amount presented for 2013 reflects the post-acquisition property and equipment additions of Virgin Media from June 8, 2013 through December 31, 2013.

Revenue by Major Category

Our revenue by major category is set forth below:



	Year ended December 31,
	2013		2012		2011
	in millions
Subscription revenue (a):
Video	$	5,724.1	$	4,637.6	$	4,397.7
Broadband internet (b)	3,536.6		2,407.0		2,203.4
Fixed-line telephony (b)	2,505.3		1,518.9		1,299.2
Cable subscription revenue	11,766.0		8,563.5		7,900.3
Mobile (c)	669.9		131.5		76.9
Total subscription revenue	12,435.9		8,695.0		7,977.2
B2B revenue (d)	992.2		467.9		495.0
Other revenue (b) (e)	1,046.1		767.9		646.1
Total revenue	$	14,474.2	$	9,930.8	$	9,118.3

_______________


(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 (RGUs). Accordingly, we have reclassified the revenue from our DSL subscribers in Austria from broadband internet and fixed-line telephony subscription revenue to other revenue for all periods presented.


(c)	Mobile subscription revenue excludes $175.2 million, $35.1 million and $13.4 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 $147.2 million, $59.7 million and $50.4 million, respectively, is included in cable subscription revenue.


(e)	Other revenue includes, among other items, interconnect, installation and carriage fee revenue.

Geographic Segments

The revenue of our geographic segments is set forth below:



	Year ended December 31,
	2013		2012		2011
	in millions
European Operations Division:
U.K. (a)	$	3,653.7	$	—	$	—
Germany	2,559.2		2,311.0		1,450.0
Belgium	2,185.9		1,918.0		1,918.5
Switzerland	1,332.1		1,259.8		1,282.6
The Netherlands	1,242.4		1,229.1		1,273.4
Ireland	463.7		426.4		430.2
Poland	460.4		450.0		390.7
Austria	435.0		422.0		463.1
Hungary	257.1		248.2		270.9
The Czech Republic	219.6		226.5		251.9
Romania	140.4		130.0		143.5
Slovakia	63.7		61.0		65.5
Other (b)	130.4		117.0		122.7
Total European Operations Division	13,143.6		8,799.0		8,063.0
Chile	991.6		940.6		889.0
Puerto Rico	297.2		145.5		116.3
Other, including intersegment eliminations	41.8		45.7		50.0
Total	$	14,474.2	$	9,930.8	$	9,118.3

_______________


(a)	The amount presented for 2013 reflects the post acquisition revenue of Virgin Media from June 8, 2013 through December 31, 2013.


(b)	Primarily represents revenue of UPC DTH from customers located in Hungary, the Czech Republic, Romania and Slovakia.

The long-lived assets of our geographic segments are set forth below:



	December 31,
	2013		2012
	in millions
European Operations Division:
U.K.	$	23,570.6	$	—
Germany	10,754.7		10,626.4
Switzerland	4,745.7		4,685.6
Belgium	4,737.4		4,617.8
The Netherlands	2,496.5		2,378.3
Austria	1,216.1		1,149.7
Poland	1,178.5		1,172.9
Ireland	751.5		737.2
The Czech Republic	679.7		740.7
Hungary	640.6		623.1
Romania	209.6		200.3
Slovakia	131.0		129.1
Other (a)	522.8		365.3
Total European Operations Division	51,634.7		27,426.4
Chile	1,139.7		1,363.3
Puerto Rico	1,131.9		1,155.0
U.S. (b)	42.4		32.7
Other	40.6		44.4
Total - continuing operations	53,989.3		30,021.8
Discontinued operation (c)	513.6		432.9
Total	$	54,502.9	$	30,454.7

_______________


(a)	Primarily represents long-lived assets of the European Operations Division’s central operations, which are located in the Netherlands.


(b)	Primarily represents the assets of our corporate category.


(c)	At December 31, 2013, the long-lived assets of the Chellomedia Disposal Group are presented in long-term assets of discontinued operation in our consolidated balance sheet.