Segment Information

12 Months Ended

Dec. 31, 2021

Segment Information

Segment Information

(15) Segment Information

Liberty Broadband identifies its reportable segments as (A) those consolidated companies that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings or losses represent 10% or more of Liberty Broadband’s annual pre-tax earnings (losses).

During the first quarter of 2021, as a result of the closing of the Combination on December 18, 2020, Skyhook Holding, Inc., a wholly owned subsidiary of the Company, is no longer significant to the Company and has been included in Corporate and other for presentation purposes. The revised segment reporting structure includes the following reportable segments: (1) GCI Holdings and (2) Charter. All prior period segment disclosure information has been reclassified to conform to the current reporting structure. These reclassifications had no effect on our consolidated financial statements in any period.

Liberty Broadband evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, Liberty Broadband reviews nonfinancial measures such as subscriber growth.

For segment reporting purposes, Liberty Broadband defines Adjusted OIBDA as revenue less operating expenses and selling, general and administrative expenses (excluding stock-based compensation and transaction costs). Liberty Broadband believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock based compensation, transaction costs, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net earnings, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Liberty Broadband generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.

For the year ended December 31, 2021, Liberty Broadband has identified the following consolidated company and equity method investment as its reportable segments:

● GCI Holdings – a wholly owned subsidiary of the Company that provides a full range of wireless, data, video, voice, and managed services to residential, businesses, governmental entities, and educational and medical institutions primarily in Alaska.

● Charter—an equity method investment that is one of the largest providers of cable services in the United States, offering a variety of entertainment, information and communications solutions to residential and commercial customers.

Liberty Broadband’s operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated companies are the same as those described in the Company’s summary of significant accounting policies in the Company’s annual financial statements. We have included amounts attributable to Charter in the tables below. Although Liberty Broadband owns less than 100% of the outstanding shares of Charter, 100% of the Charter amounts are included in the schedule below and subsequently eliminated in order to reconcile the account totals to the Liberty Broadband consolidated financial statements.

Performance Measures

	Years ended December 31,
	2021			2020		2019
			Adjusted		Adjusted		Adjusted
	Revenue		OIBDA	Revenue	OIBDA	Revenue	OIBDA
	amounts in millions
GCI Holdings	$	970	354	34	10	—	—
Charter		51,682	20,301	48,097	18,460	45,764	16,752
Corporate and other		18	(49)	17	(24)	15	(17)
		52,670	20,606	48,148	18,446	45,779	16,735
Eliminate equity method affiliate		(51,682)	(20,301)	(48,097)	(18,460)	(45,764)	(16,752)
Consolidated Liberty Broadband	$	988	305	51	(14)	15	(17)

Other Information

	December 31, 2021				December 31, 2020
	Total		Investments	Capital	Total	Investments	Capital
	assets		in affiliates	expenditures	assets	in affiliates	expenditures
	amounts in millions
GCI Holdings	$	3,451	—	134	3,677	—	2
Charter		142,491	—	7,635	144,206	—	7,415
Corporate and other		13,517	13,261	—	17,696	16,179	—
		159,459	13,261	7,769	165,579	16,179	7,417
Eliminate equity method affiliate		(142,491)	—	(7,635)	(144,206)	—	(7,415)
Consolidated Liberty Broadband	$	16,968	13,261	134	21,373	16,179	2

Revenue by Geographic Area

	Years ended December 31,
	2021		2020	2019
	amounts in millions
United States	$	986	49	13
Other countries		2	2	2
	$	988	51	15

The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and earnings (loss) before income taxes:

	Years ended December 31,
	2021		2020	2019
	amounts in millions
Consolidated segment Adjusted OIBDA	$	305	(14)	(17)
Stock-based compensation		(41)	(9)	(10)
Depreciation and amortization		(267)	(15)	(2)
Litigation settlement, net of recoveries		(95)	—	—
Transaction costs		—	(22)	—
Operating income (loss)		(98)	(60)	(29)
Interest expense		(117)	(28)	(25)
Share of earnings (loss) of affiliates, net		1,194	713	286
Gain (loss) on dilution of investment in affiliate		(102)	(184)	(79)
Realized and unrealized gains (losses) on financial instruments, net		67	(83)	1
Other, net		6	3	1
Earnings (loss) before income taxes	$	950	361	155