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Segment Reporting
 12 Months Ended
Dec. 31, 2016
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Reporting Segment Reporting

We generally identify our reportable segments as those consolidated subsidiaries that represent 10% or more of our revenue, Adjusted OIBDA (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 Adjusted OIBDA. In addition, we review non-financial measures such as subscriber growth, as appropriate.

Adjusted operating income before depreciation and amortization (Adjusted OIBDA) is the primary measure used by our chief operating decision maker to evaluate segment operating performance. Adjusted OIBDA 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, Adjusted OIBDA is defined as operating income before depreciation and amortization, share-based compensation, 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 Adjusted OIBDA is a meaningful measure 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. A reconciliation of total segment Adjusted OIBDA to our earnings (loss) from continuing operations before income taxes is presented below.

As of December 31, 2016, our reportable segments are as follows:

•
European Division:
•
U.K./Ireland
•
Belgium
•
The Netherlands (through the completion of the Dutch JV Transaction)
•
Germany
•
Switzerland/Austria
•
Central and Eastern Europe

•
LiLAC Division:
•
CWC
•
Chile
•
Puerto Rico

On December 31, 2016, we completed the Dutch JV Transaction, whereby we contributed Ziggo Group Holding (including Ziggo Sport) to the Dutch JV. Accordingly, our results of operations include the operations of Ziggo Group Holding and Ziggo Sport for all periods presented while our December 31, 2016 consolidated balance sheet excludes such entities. In our segment presentation, Ziggo Group Holding (exclusive of Ziggo Sport, which became a subsidiary of Ziggo Group Holding in October 2016) is separately reported as “The Netherlands” and Ziggo Sport is included in our “Corporate and Other” category. Beginning with the first quarter of 2017, we expect to present the Dutch JV as a reportable segment. For additional information regarding the Dutch JV Transaction, see note 5 to our consolidated financial statements.

All of the reportable segments set forth above derive their revenue primarily from residential and B2B services, including video, broadband internet and fixed-line telephony services and, with the exception of Puerto Rico, mobile services. At December 31, 2016, our operations in the European Division provided residential and B2B services in 11 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.” In addition to UPC DTH, our Central and Eastern Europe segment includes our broadband communications operations in the Czech Republic, Hungary, Poland, Romania and Slovakia. The European Division’s central and other category includes (i) costs associated with certain centralized functions, including billing systems, network operations, technology, marketing, facilities, finance and other administrative functions, and (ii) intersegment eliminations within the European Division. In addition, our LiLAC Division provides residential and B2B services in (a) 18 countries, all but one of which are located in Latin America and the Caribbean, through CWC, (b) Chile through VTR and (c) Puerto Rico through Liberty Puerto Rico. CWC also provides (1) B2B services in certain other countries in Latin America and the Caribbean and (2) wholesale services over its sub-sea and terrestrial networks that connect over 30 markets in that region. The corporate and other category for the Liberty Global Group includes less significant consolidated operating segments that provide programming and other services, including Ziggo Sport through December 31, 2016. Intersegment eliminations primarily represent the elimination of intercompany transactions between our broadband communications and programming operations. Inter-group eliminations represent the elimination of intercompany transactions between the Liberty Global Group and the LiLAC Group.

Performance Measures of Our Reportable Segments

The amounts presented below represent 100% of each of our reportable segment’s revenue and Adjusted OIBDA. As we have the ability to control Telenet, Liberty Puerto Rico and certain subsidiaries of CWC that are not wholly owned, 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, Liberty Puerto
Rico, certain subsidiaries of CWC and other less significant majority-owned subsidiaries are reflected in net earnings or loss attributable to noncontrolling interests in our consolidated statements of operations. For additional information, see note 1.
 
Year ended December 31,
 
2016
 
2015
 
2014
 
Revenue
 
Adjusted OIBDA
 
Revenue
 
Adjusted OIBDA
 
Revenue
 
Adjusted OIBDA
 
in millions
Liberty Global Group:
 
 
 
 
 
 
 
 
 
 
 
European Division:
 
 
 
 
 
 
 
 
 
 
 
U.K./Ireland
$
6,508.8

 
$
2,930.9

 
$
7,058.7

 
$
3,162.1

 
$
7,409.9

 
$
3,235.7

Belgium (a)
2,691.1

 
1,173.4

 
2,021.0

 
990.3

 
2,279.4

 
1,125.0

The Netherlands (b)
2,690.8

 
1,472.7

 
2,745.3

 
1,519.5

 
1,498.5

 
857.9

Germany
2,539.7

 
1,586.4

 
2,399.5

 
1,502.1

 
2,711.5

 
1,678.2

Switzerland/Austria
1,755.6

 
1,069.3

 
1,758.2

 
1,040.1

 
1,846.1

 
1,056.4

Total Western Europe
16,186.0

 
8,232.7

 
15,982.7

 
8,214.1

 
15,745.4

 
7,953.2

Central and Eastern Europe
1,088.4

 
471.5

 
1,066.6

 
474.0

 
1,259.5

 
583.0

Central and other
(8.0
)
 
(327.2
)
 
(5.4
)
 
(289.2
)
 
(7.1
)
 
(282.7
)
Total European Division
17,266.4

 
8,377.0

 
17,043.9

 
8,398.9

 
16,997.8

 
8,253.5

Corporate and other
66.7

 
(213.3
)
 
42.3

 
(222.6
)
 
70.8

 
(212.0
)
Intersegment eliminations (c)
(48.1
)
 
—

 
(23.5
)
 
—

 
(24.9
)
 
4.0

Total Liberty Global Group
17,285.0

 
8,163.7

 
17,062.7

 
8,176.3

 
17,043.7

 
8,045.5

LiLAC Group:
 
 
 
 
 
 
 
 
 
 
 
LiLAC Division:
 
 
 
 
 
 
 
 
 
 
 
CWC (d)
1,444.8

 
541.9

 
—

 
—

 
—

 
—

Chile
859.5

 
339.3

 
838.1

 
328.1

 
898.5

 
351.0

Puerto Rico (e)
420.8

 
211.8

 
379.2

 
167.2

 
306.1

 
128.9

Total LiLAC Division
2,725.1

 
1,093.0

 
1,217.3

 
495.3

 
1,204.6

 
479.9

Intersegment eliminations
(1.3
)
 
—

 
—

 
—

 
—

 
—

Corporate
—

 
(8.9
)
 
—

 
(4.3
)
 
—

 
(3.1
)
Total LiLAC Group
2,723.8

 
1,084.1

 
1,217.3

 
491.0

 
1,204.6

 
476.8

Total
$
20,008.8

 
$
9,247.8

 
$
18,280.0

 
$
8,667.3

 
$
18,248.3

 
$
8,522.3


_______________

(a)
The amounts presented for 2016 include the post-acquisition revenue and Adjusted OIBDA of BASE, which was acquired on February 11, 2016.

(b)
The amounts presented for 2014 exclude the pre-acquisition revenue and Adjusted OIBDA of Ziggo, which was acquired on November 11, 2014.

(c)
Amounts are primarily related to transactions between our European Division and our programming operations.

(d)
The amounts presented for 2016 reflect the post-acquisition revenue and Adjusted OIBDA of CWC, which was acquired on May 16, 2016.

(e)
The amounts presented for 2015 exclude the pre-acquisition revenue and Adjusted OIBDA of Choice, which was acquired on June 3, 2015.

The following table provides a reconciliation of total segment Adjusted OIBDA from continuing operations to earnings (loss) from continuing operations before income taxes:
 
Year ended December 31,
 
2016
 
2015
 
2014
 
in millions
 
 
 
 
 
 
Total segment Adjusted OIBDA from continuing operations
$
9,247.8

 
$
8,667.3

 
$
8,522.3

Share-based compensation expense
(296.9
)
 
(318.2
)
 
(257.2
)
Depreciation and amortization
(5,801.1
)
 
(5,825.8
)
 
(5,500.1
)
Impairment, restructuring and other operating items, net
(348.5
)
 
(174.1
)
 
(536.8
)
Operating income
2,801.3

 
2,349.2

 
2,228.2

Interest expense
(2,638.4
)
 
(2,441.4
)
 
(2,544.7
)
Realized and unrealized gains on derivative instruments, net
845.1

 
847.2

 
88.8

Foreign currency transaction losses, net
(290.0
)
 
(1,149.2
)
 
(836.5
)
Realized and unrealized gains (losses) due to changes in fair values of certain investments and debt, net
(461.5
)
 
124.5

 
205.2

Losses on debt modification and extinguishment, net
(237.2
)
 
(388.0
)
 
(186.2
)
Gain on Dutch JV Transaction
520.8

 
—

 
—

Other income (expense), net
9.3

 
(26.9
)
 
(10.7
)
Earnings (loss) from continuing operations before income taxes
$
549.4

 
$
(684.6
)
 
$
(1,055.9
)


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,
 
2016
 
2015
 
2016
 
2015
 
in millions
Liberty Global Group:
 
 
 
 
 
 
 
European Division:
 
 
 
 
 
 
 
U.K./Ireland
$
16,287.4

 
$
19,789.9

 
$
20,445.8

 
$
23,523.6

Belgium
4,961.8

 
3,674.9

 
5,724.7

 
4,457.7

The Netherlands
—

 
14,741.7

 
—

 
15,103.2

Germany
7,388.9

 
7,898.9

 
7,937.2

 
8,578.5

Switzerland/Austria
5,054.3

 
5,108.0

 
5,415.3

 
5,438.6

Total Western Europe
33,692.4

 
51,213.4

 
39,523.0

 
57,101.6

Central and Eastern Europe
2,262.4

 
2,268.0

 
2,360.7

 
2,357.5

Central and other (a)
676.7

 
543.9

 
9,753.1

 
1,541.1

Total European Division
36,631.5

 
54,025.3

 
51,636.8

 
61,000.2

Corporate and other
107.8

 
119.7

 
2,881.1

 
3,331.3

Total Liberty Global Group
36,739.3

 
54,145.0

 
54,517.9

 
64,331.5

LiLAC Group:
 
 
 
 
 
 
 
LiLAC Division:
 
 
 
 
 
 
 
CWC
9,534.8

 
—

 
10,934.7

 
—

Chile
993.9

 
873.7

 
1,500.6

 
1,506.6

Puerto Rico
1,355.6

 
1,347.8

 
1,465.9

 
1,469.4

Total LiLAC Division
11,884.3

 
2,221.5

 
13,901.2

 
2,976.0

Corporate
120.9

 
120.9

 
290.9

 
262.1

Total LiLAC Group
12,005.2

 
2,342.4

 
14,192.1

 
3,238.1

Inter-group eliminations
—

 
—

 
(25.9
)
 
(10.6
)
Total
$
48,744.5

 
$
56,487.4

 
$
68,684.1

 
$
67,559.0


_______________

(a)
The total asset amount at December 31, 2016 includes our equity method investment in the Dutch JV and related receivables.

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 9.
 
Year ended December 31,
 
2016
 
2015
 
2014
 
in millions
Liberty Global Group:
 
 
 
 
 
European Division:
 
 
 
 
 
U.K./Ireland
$
1,761.1

 
$
1,527.3

 
$
1,506.7

Belgium (a)
588.4

 
371.6

 
448.9

The Netherlands (b)
588.9

 
536.1

 
268.0

Germany
594.3

 
535.7

 
574.5

Switzerland/Austria
368.7

 
315.6

 
327.2

Total Western Europe
3,901.4

 
3,286.3

 
3,125.3

Central and Eastern Europe
330.5

 
277.3

 
264.8

Central and other
387.2

 
280.7

 
257.9

Total European Division
4,619.1

 
3,844.3

 
3,648.0

Corporate and other
19.5

 
65.9

 
5.0

Total Liberty Global Group
4,638.6

 
3,910.2

 
3,653.0

LiLAC Group:
 
 
 
 
 
CWC (c)
282.6

 
—

 
—

Chile
194.6

 
149.0

 
195.8

Puerto Rico (d)
91.0

 
78.1

 
60.4

Total LiLAC Group
568.2

 
227.1

 
256.2

Total property and equipment additions
5,206.8

 
4,137.3

 
3,909.2

Assets acquired under capital-related vendor financing arrangements
(2,064.2
)
 
(1,481.5
)
 
(975.3
)
Assets acquired under capital leases
(111.6
)
 
(106.1
)
 
(127.2
)
Changes in current liabilities related to capital expenditures
(386.7
)
 
(50.2
)
 
(122.3
)
Total capital expenditures
$
2,644.3

 
$
2,499.5

 
$
2,684.4

_______________

(a)
The amount presented at December 31, 2016 includes the post-acquisition property and equipment additions of BASE, which was acquired on February 11, 2016.

(b)
The amount presented at December 31, 2014 excludes the pre-acquisition property and equipment additions of Ziggo, which was acquired on November 11, 2014.

(c)
The amount presented at December 31, 2016 reflects the post-acquisition property and equipment additions of CWC, which was acquired on May 16, 2016.

(d)
The amount presented at December 31, 2015 excludes the pre-acquisition property and equipment additions of Choice, which was acquired on June 3, 2015.

Revenue by Major Category

Our revenue by major category is set forth below:
 
Year ended December 31,
 
2016
 
2015
 
2014
 
in millions
Subscription revenue (a):
 
 
 
 
 
Video
$
6,378.0

 
$
6,380.1

 
$
6,535.7

Broadband internet
5,309.4

 
5,073.4

 
4,713.6

Fixed-line telephony
3,018.6

 
3,160.9

 
3,258.9

Cable subscription revenue
14,706.0

 
14,614.4

 
14,508.2

Mobile (b)
1,706.4

 
1,037.3

 
1,085.6

Total subscription revenue
16,412.4

 
15,651.7

 
15,593.8

B2B revenue (c)
2,156.3

 
1,580.2

 
1,515.9

Other revenue (b) (d)
1,440.1

 
1,048.1

 
1,138.6

Total
$
20,008.8

 
$
18,280.0

 
$
18,248.3

_______________

(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. As a result, changes in the standalone pricing of our cable and mobile products or the composition of bundles can contribute to changes in our product revenue categories from period to period.

(b)
Mobile subscription revenue excludes mobile interconnect revenue of $313.4 million, $212.7 million and $245.0 million during 2016, 2015 and 2014, respectively. Mobile interconnect revenue and revenue from mobile handset sales are included in other revenue.

(c)
B2B revenue includes revenue from business broadband internet, video, voice, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other operators. We also provide services to certain small or home office (SOHO) subscribers. SOHO subscribers pay a premium price to receive expanded service levels along with video, broadband internet, fixed-line telephony or mobile services that are the same or similar to the mass marketed products offered to our residential subscribers. Revenue from SOHO subscribers, which is included in subscription revenue, aggregated $491.8 million, $319.2 million and $216.5 million during 2016, 2015 and 2014, respectively.

(d)
Other revenue includes, among other items, interconnect fees, mobile handset sales, channel carriage fees and installation fees.

Geographic Segments

The revenue of our geographic segments is set forth below:
 
Year ended December 31,
 
2016
 
2015
 
2014
 
in millions
Liberty Global Group:
 
 
 
 
 
European Division:
 
 
 
 
 
U.K.
$
6,070.4

 
$
6,663.3

 
$
6,941.1

Belgium (a)
2,691.1

 
2,021.0

 
2,279.4

The Netherlands (b)
2,690.8

 
2,745.3

 
1,498.5

Germany
2,539.7

 
2,399.5

 
2,711.5

Switzerland
1,377.3

 
1,390.3

 
1,414.4

Ireland
438.4

 
395.4

 
468.8

Poland
391.4

 
399.7

 
469.9

Austria
378.3

 
367.9

 
431.7

Hungary
273.1

 
258.5

 
310.2

The Czech Republic
180.4

 
176.6

 
221.0

Romania
169.9

 
158.1

 
173.3

Slovakia
58.4

 
59.3

 
74.5

Other
7.2

 
9.0

 
3.5

Total European Division
17,266.4

 
17,043.9

 
16,997.8

Other, including intersegment eliminations
18.6

 
18.8

 
45.9

Total Liberty Global Group
17,285.0

 
17,062.7

 
17,043.7

LiLAC Group:
 
 
 
 
 
LiLAC Division:
 
 
 
 
 
CWC (c):
 
 
 
 
 
Panama
414.8

 
—

 
—

Jamaica
202.9

 
—

 
—

Bahamas
181.5

 
—

 
—

Barbados
143.1

 
—

 
—

Trinidad and Tobago
103.0

 
—

 
—

Other (d)
399.5

 
—

 
—

Total CWC
1,444.8

 
—

 
—

Chile
859.5

 
838.1

 
898.5

Puerto Rico (e)
420.8

 
379.2

 
306.1

Total LiLAC Division
2,725.1

 
1,217.3

 
1,204.6

Intersegment eliminations
(1.3
)
 
—

 
—

Total LiLAC Group
2,723.8

 
1,217.3

 
1,204.6

Total
$
20,008.8

 
$
18,280.0

 
$
18,248.3

_______________ 

(a)
The amount presented for 2016 includes the post-acquisition revenue of BASE, which was acquired on February 11, 2016.

(b)
The amount presented for 2014 excludes the pre-acquisition revenue of Ziggo, which was acquired on November 11, 2014.

(c)
The amount presented for 2016 reflects the post-acquisition revenue of CWC, which was acquired on May 16, 2016. For each CWC jurisdiction, the amounts presented include (i) revenue from residential and B2B operations and (ii) revenue derived from wholesale network customers, as applicable.

(d)
The amount presented for 2016 relates to other countries in which CWC operates, which are primarily located in Latin America and the Caribbean, and includes (i) revenue from residential and B2B operations, (ii) revenue from wholesale network customers and (iii) intercompany eliminations.

(e)
The amount presented for 2015 excludes the pre-acquisition revenue of Choice, which was acquired on June 3, 2015.

The long-lived assets of our geographic segments are set forth below:
 
December 31,
 
2016
 
2015
 
in millions
Liberty Global Group:
 
 
 
European Division:
 
 
 
U.K.
$
15,638.7

 
$
19,127.8

Germany
7,388.9

 
7,898.9

Belgium
4,961.8

 
3,674.9

Switzerland
4,057.3

 
4,117.7

Austria
997.0

 
990.3

Poland
840.9

 
893.2

Ireland
648.7

 
662.1

The Czech Republic
529.1

 
534.8

Hungary
519.4

 
494.4

Romania
228.2

 
194.0

Slovakia
109.6

 
103.2

The Netherlands
—

 
14,741.7

Other (a)
711.9

 
592.3

Total European Division
36,631.5

 
54,025.3

U.S. and other (b)
107.8

 
119.7

Total Liberty Global Group
36,739.3

 
54,145.0

LiLAC Group:
 
 
 
CWC:
 
 
 
Panama
2,330.0

 
—

Networks (c)
1,547.1

 
—

Trinidad and Tobago
1,024.5

 
—

Jamaica
943.3

 
—

Bahamas
869.1

 
—

Barbados
645.1

 
—

Other (d)
2,175.7

 
—

Total CWC
9,534.8

 
—

Puerto Rico
1,355.6

 
1,347.8

Chile
993.9

 
873.7

Corporate
120.9

 
120.9

Total LiLAC Group
12,005.2

 
2,342.4

Total
$
48,744.5

 
$
56,487.4

_______________ 

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

(b)
Primarily represents the long-lived assets of our corporate offices.

(c)
Represents long-lived assets related to CWC’s sub-sea and terrestrial network that connects over 30 markets in Latin America and the Caribbean.
 
(d)
The amount presented at December 31, 2016 includes long-lived assets of CWC’s other operations, which are primarily located in the Caribbean.