10-Q 1 lbrda-20220630x10q.htm 10-Q
http://fasb.org/us-gaap/2021-01-31#ServiceMemberhttp://fasb.org/us-gaap/2021-01-31#ServiceMemberhttp://fasb.org/us-gaap/2021-01-31#ServiceMemberhttp://fasb.org/us-gaap/2021-01-31#PrepaidExpenseAndOtherAssetsCurrent232323422163305525445482328901144854780132311691http://fasb.org/us-gaap/2021-01-31#ServiceMemberhttp://fasb.org/us-gaap/2021-01-31#PrepaidExpenseAndOtherAssetsCurrentP5D71839620.330P6MP1YP1YP1YP1Y0001611983false--12-312022Q20001611983lbrda:CommonClassAndCMember2022-06-300001611983lbrda:CommonClassAndCMember2021-02-230001611983lbrda:CommonClassAndCMember2022-01-012022-06-300001611983us-gaap:CommonClassCMember2021-01-012021-06-300001611983us-gaap:CommonClassCMemberus-gaap:CommonStockMember2022-06-300001611983us-gaap:RetainedEarningsMember2022-06-300001611983us-gaap:NoncontrollingInterestMember2022-06-300001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-06-300001611983us-gaap:AdditionalPaidInCapitalMember2022-06-300001611983us-gaap:CommonClassCMemberus-gaap:CommonStockMember2022-03-310001611983us-gaap:RetainedEarningsMember2022-03-310001611983us-gaap:NoncontrollingInterestMember2022-03-310001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-03-310001611983us-gaap:AdditionalPaidInCapitalMember2022-03-3100016119832022-03-310001611983us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-12-310001611983us-gaap:RetainedEarningsMember2021-12-310001611983us-gaap:NoncontrollingInterestMember2021-12-310001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-12-310001611983us-gaap:AdditionalPaidInCapitalMember2021-12-310001611983us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-06-300001611983us-gaap:RetainedEarningsMember2021-06-300001611983us-gaap:NoncontrollingInterestMember2021-06-300001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-06-300001611983us-gaap:AdditionalPaidInCapitalMember2021-06-300001611983us-gaap:CommonClassCMemberus-gaap:CommonStockMember2021-03-310001611983us-gaap:RetainedEarningsMember2021-03-310001611983us-gaap:NoncontrollingInterestMember2021-03-310001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-03-310001611983us-gaap:AdditionalPaidInCapitalMember2021-03-3100016119832021-03-310001611983us-gaap:CommonClassCMemberus-gaap:CommonStockMember2020-12-310001611983us-gaap:RetainedEarningsMember2020-12-310001611983us-gaap:NoncontrollingInterestMember2020-12-310001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001611983us-gaap:AdditionalPaidInCapitalMember2020-12-310001611983us-gaap:EmployeeStockOptionMemberus-gaap:CommonClassBMember2022-06-300001611983us-gaap:EmployeeStockOptionMemberus-gaap:CommonClassAMember2022-06-300001611983us-gaap:EmployeeStockOptionMemberus-gaap:CommonClassCMember2021-12-310001611983srt:ChiefExecutiveOfficerMemberus-gaap:EmployeeStockOptionMemberus-gaap:CommonClassCMember2022-01-012022-06-300001611983us-gaap:EmployeeStockOptionMemberus-gaap:CommonClassBMember2022-01-012022-06-300001611983us-gaap:EmployeeStockOptionMemberus-gaap:CommonClassAMember2022-01-012022-06-300001611983us-gaap:EmployeeStockOptionMemberus-gaap:CommonClassCMember2022-01-012022-06-300001611983us-gaap:EmployeeStockOptionMemberus-gaap:CommonClassCMember2022-06-300001611983lbrda:SpvMemberlbrda:CharterCommunicationsMemberlbrda:MarginLoanAgreementsMember2022-06-3000016119832022-07-012022-06-3000016119832026-01-012022-06-3000016119832025-01-012022-06-3000016119832024-01-012022-06-3000016119832023-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:WirelessMemberlbrda:GciHoldingsMember2022-04-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:OtherRevenueMemberlbrda:GciHoldingsMember2022-04-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:DataMemberlbrda:GciHoldingsMember2022-04-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:WirelessMemberlbrda:GciHoldingsMember2022-04-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:OtherRevenueMemberlbrda:GciHoldingsMember2022-04-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:DataMemberlbrda:GciHoldingsMember2022-04-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:LeaseGrantAndRevenueFromSubsidiesMemberlbrda:GciHoldingsMember2022-04-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:WirelessMemberlbrda:GciHoldingsMember2022-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:OtherRevenueMemberlbrda:GciHoldingsMember2022-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:DataMemberlbrda:GciHoldingsMember2022-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:WirelessMemberlbrda:GciHoldingsMember2022-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:OtherRevenueMemberlbrda:GciHoldingsMember2022-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:DataMemberlbrda:GciHoldingsMember2022-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:LeaseGrantAndRevenueFromSubsidiesMemberlbrda:GciHoldingsMember2022-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:WirelessMemberlbrda:GciHoldingsMember2021-04-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:OtherRevenueMemberlbrda:GciHoldingsMember2021-04-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:DataMemberlbrda:GciHoldingsMember2021-04-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:WirelessMemberlbrda:GciHoldingsMember2021-04-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:OtherRevenueMemberlbrda:GciHoldingsMember2021-04-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:DataMemberlbrda:GciHoldingsMember2021-04-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:LeaseGrantAndRevenueFromSubsidiesMemberlbrda:GciHoldingsMember2021-04-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:WirelessMemberlbrda:GciHoldingsMember2021-01-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:OtherRevenueMemberlbrda:GciHoldingsMember2021-01-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:ConsumerRevenueMemberlbrda:DataMemberlbrda:GciHoldingsMember2021-01-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:WirelessMemberlbrda:GciHoldingsMember2021-01-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:OtherRevenueMemberlbrda:GciHoldingsMember2021-01-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:BusinessRevenueMemberlbrda:DataMemberlbrda:GciHoldingsMember2021-01-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:LeaseGrantAndRevenueFromSubsidiesMemberlbrda:GciHoldingsMember2021-01-012021-06-300001611983lbrda:SpvMemberlbrda:MarginLoanAgreementsMember2021-05-122021-05-120001611983lbrda:GciLlcMemberlbrda:TermLoanBMember2021-10-152021-10-150001611983lbrda:GciLlcMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-01-012021-06-300001611983lbrda:LibertyMediaCorporationAndItsSubsidiariesMember2022-04-012022-06-300001611983lbrda:LibertyMediaCorporationAndItsSubsidiariesMember2022-01-012022-06-300001611983lbrda:LibertyMediaCorporationAndItsSubsidiariesMember2021-04-012021-06-300001611983lbrda:LibertyMediaCorporationAndItsSubsidiariesMember2021-01-012021-06-300001611983lbrda:CharterCommunicationsMemberus-gaap:PropertyPlantAndEquipmentMember2022-01-012022-06-300001611983us-gaap:RetainedEarningsMember2022-04-012022-06-300001611983us-gaap:RetainedEarningsMember2022-01-012022-06-300001611983us-gaap:RetainedEarningsMember2021-04-012021-06-300001611983us-gaap:RetainedEarningsMember2021-01-012021-06-300001611983lbrda:GciLlcMemberus-gaap:LineOfCreditMember2021-10-152021-10-150001611983lbrda:SkyhookHoldingIncMember2022-05-022022-05-020001611983us-gaap:SubsequentEventMember2022-07-152022-07-150001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-04-012022-06-300001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-06-300001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-04-012021-06-300001611983us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-06-300001611983us-gaap:ExchangeableDebtMember2022-04-012022-06-300001611983us-gaap:ExchangeableDebtMember2021-04-012021-06-300001611983us-gaap:ExchangeableDebtMember2021-01-012021-06-3000016119832020-12-180001611983lbrda:HollywoodFirefightersPensionFundEtalVersusGciLibertyIncEtalMember2020-10-012020-10-310001611983lbrda:GciHoldingsMemberlbrda:RuralHealthCareProgramMembersrt:MinimumMember2019-12-310001611983lbrda:GciHoldingsMemberlbrda:RuralHealthCareProgramMembersrt:MaximumMember2019-12-310001611983lbrda:SeniorNotes4.75PercentDue2028Member2022-06-300001611983lbrda:GciHoldingsMemberlbrda:RuralHealthCareProgramMember2022-06-012022-06-300001611983lbrda:HollywoodFirefightersPensionFundEtalVersusGciLibertyIncEtalMember2021-05-052021-05-050001611983lbrda:GciHoldingsMemberlbrda:RuralHealthCareProgramMember2019-12-310001611983lbrda:GciLlcMemberus-gaap:LineOfCreditMember2022-06-300001611983lbrda:SpvMemberlbrda:UncommittedIncrementalTermLoanFacilityMember2021-05-120001611983lbrda:SpvMemberus-gaap:RevolvingCreditFacilityMember2021-05-120001611983us-gaap:OtherIntangibleAssetsMember2022-06-300001611983lbrda:CableCertificatesMember2022-06-300001611983us-gaap:OtherIntangibleAssetsMember2021-12-310001611983lbrda:CableCertificatesMember2021-12-310001611983us-gaap:ExchangeableDebtMember2022-04-012022-06-300001611983lbrda:IndemnificationObligationMember2022-04-012022-06-300001611983us-gaap:ExchangeableDebtMember2022-01-012022-06-300001611983lbrda:IndemnificationObligationMember2022-01-012022-06-300001611983us-gaap:ExchangeableDebtMember2021-04-012021-06-300001611983lbrda:IndemnificationObligationMember2021-04-012021-06-300001611983us-gaap:ExchangeableDebtMember2021-01-012021-06-300001611983lbrda:IndemnificationObligationMember2021-01-012021-06-300001611983lbrda:CharterCommunicationsMemberus-gaap:CustomerRelationshipsMember2022-01-012022-06-300001611983us-gaap:OtherIntangibleAssetsMember2022-06-300001611983us-gaap:CustomerRelationshipsMember2022-06-300001611983us-gaap:OtherIntangibleAssetsMember2021-12-310001611983us-gaap:CustomerRelationshipsMember2021-12-310001611983us-gaap:EmployeeStockOptionMember2022-06-300001611983us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001611983lbrda:SkyhookHoldingIncMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-05-022022-05-020001611983lbrda:GciLibertyMemberlbrda:SeniorNotes4.75PercentDue2028Member2022-06-300001611983lbrda:LILLCMemberlbrda:ExchangeableSeniorDebentures1.75PercentDue2046Memberus-gaap:ExchangeableDebtMemberus-gaap:IndemnificationGuaranteeMember2022-06-300001611983lbrda:GciLlcMembersrt:MinimumMemberlbrda:TermLoanBMemberus-gaap:LineOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-10-150001611983lbrda:GciLlcMemberlbrda:TermLoanaMemberlbrda:TermLoanBMember2021-10-150001611983lbrda:GciLlcMemberus-gaap:StandbyLettersOfCreditMember2021-10-150001611983lbrda:GciLlcMemberus-gaap:RevolvingCreditFacilityMember2021-10-150001611983lbrda:GciLlcMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberlbrda:OtherThanLondonInterbankOfferedRateLiborMember2021-10-152021-10-150001611983lbrda:GciLlcMemberlbrda:TermLoanaMemberus-gaap:LineOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-10-152021-10-150001611983lbrda:GciLlcMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-10-152020-10-150001611983lbrda:GciLlcMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberlbrda:OtherThanLondonInterbankOfferedRateLiborMember2020-10-152020-10-150001611983lbrda:GciLlcMemberus-gaap:StandbyLettersOfCreditMemberus-gaap:LineOfCreditMember2022-06-300001611983lbrda:GciLlcMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-06-300001611983lbrda:GciLlcMemberlbrda:TermLoanaMemberus-gaap:LineOfCreditMember2022-06-300001611983lbrda:GciLibertyMemberlbrda:WellsFargoNotesMember2020-12-180001611983lbrda:GciLibertyMemberlbrda:SeniorNotes4.75PercentDue2028Member2020-12-180001611983lbrda:GciLlcMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberlbrda:OtherThanLondonInterbankOfferedRateLiborMember2021-10-152021-10-150001611983lbrda:GciLlcMembersrt:MinimumMemberlbrda:TermLoanaMemberus-gaap:LineOfCreditMemberlbrda:OtherThanLondonInterbankOfferedRateLiborMember2021-10-152021-10-150001611983lbrda:GciLlcMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberlbrda:OtherThanLondonInterbankOfferedRateLiborMember2021-10-152021-10-150001611983lbrda:GciLlcMembersrt:MaximumMemberlbrda:TermLoanaMemberus-gaap:LineOfCreditMemberlbrda:OtherThanLondonInterbankOfferedRateLiborMember2021-10-152021-10-150001611983lbrda:GciLlcMembersrt:MinimumMemberlbrda:TermLoanaMemberus-gaap:LineOfCreditMember2021-10-152021-10-150001611983lbrda:GciLlcMembersrt:MaximumMemberlbrda:TermLoanaMemberus-gaap:LineOfCreditMember2021-10-152021-10-150001611983srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-10-152021-10-150001611983srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-10-152021-10-150001611983lbrda:SpvMemberlbrda:MarginLoanAgreementsMemberlbrda:ThreeMonthLondonInterbankOfferedRateLiborMember2021-05-122021-05-120001611983lbrda:SpvMemberlbrda:MarginLoanAgreementsMemberlbrda:ThreeMonthLondonInterbankOfferedRateLiborMember2020-12-182020-12-180001611983lbrda:GciLibertyMemberlbrda:WellsFargoNotesMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-12-182020-12-180001611983lbrda:GciLlcMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-10-152020-10-150001611983lbrda:GciLlcMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberlbrda:OtherThanLondonInterbankOfferedRateLiborMember2020-10-152020-10-150001611983lbrda:GciLlcMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-10-152020-10-150001611983lbrda:GciLlcMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberlbrda:OtherThanLondonInterbankOfferedRateLiborMember2020-10-152020-10-150001611983lbrda:GciLlcMemberlbrda:TermLoanBMemberus-gaap:LineOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-10-152020-10-150001611983lbrda:GciLlcMemberlbrda:TermLoanBMemberus-gaap:LineOfCreditMemberlbrda:OtherThanLondonInterbankOfferedRateLiborMember2020-10-152020-10-150001611983lbrda:SpvMemberlbrda:MarginLoanAgreementsMemberlbrda:ThreeMonthLondonInterbankOfferedRateLiborMember2020-08-122020-08-120001611983lbrda:CharterCommunicationsMember2022-04-012022-06-300001611983lbrda:CharterCommunicationsMember2022-01-012022-06-300001611983lbrda:CharterCommunicationsMember2021-04-012021-06-300001611983lbrda:CharterCommunicationsMember2021-01-012021-06-300001611983us-gaap:CommonClassBMemberus-gaap:SubsequentEventMember2022-07-192022-07-190001611983us-gaap:CommonClassBMember2022-06-132022-06-130001611983us-gaap:CommonClassCMember2022-06-300001611983us-gaap:CommonClassBMember2022-06-300001611983us-gaap:CommonClassAMember2022-06-300001611983us-gaap:CommonClassCMember2021-12-310001611983us-gaap:CommonClassBMember2021-12-310001611983us-gaap:CommonClassAMember2021-12-310001611983lbrda:EmployeeStockOptionsAndStockAppreciationRightsSARSMemberlbrda:CommonClassClassBAndClassCMember2022-06-3000016119832021-06-3000016119832020-12-310001611983us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001611983us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001611983lbrda:SkyhookHoldingIncMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2021-12-310001611983us-gaap:OperatingSegmentsMemberlbrda:GciHoldingsMember2022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:CharterMember2022-06-300001611983us-gaap:IntersegmentEliminationMember2022-06-300001611983us-gaap:CorporateNonSegmentMember2022-06-300001611983lbrda:OperatingSegmentsAndCorporateNonSegmentMember2022-06-300001611983lbrda:CharterCommunicationsMember2022-06-300001611983lbrda:CharterCommunicationsMember2021-12-310001611983lbrda:CharterCommunicationsMember2022-04-012022-06-300001611983lbrda:CharterCommunicationsMember2021-04-012021-06-300001611983lbrda:CharterCommunicationsMember2021-01-012021-06-300001611983lbrda:QurateRetailMember2022-06-300001611983lbrda:QurateRetailMember2021-12-310001611983lbrda:CommonClassAndCMember2022-01-260001611983lbrda:CommonClassAndCMember2021-08-050001611983lbrda:SeriesCumulativeRedeemablePreferredStockMember2022-06-300001611983lbrda:GciLibertyMember2020-12-182020-12-1800016119832020-12-182020-12-180001611983lbrda:SpvMemberlbrda:CharterCommunicationsMemberlbrda:MarginLoanAgreementsMember2022-01-012022-06-300001611983us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001611983us-gaap:NoncontrollingInterestMember2022-01-012022-06-300001611983us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-300001611983us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001611983us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001611983us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001611983us-gaap:FairValueMeasurementsRecurringMember2022-06-300001611983us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001611983us-gaap:FairValueMeasurementsRecurringMember2021-12-310001611983us-gaap:ExchangeableDebtMember2022-01-012022-06-300001611983lbrda:CharterCommunicationsMember2022-01-012022-06-3000016119832022-06-3000016119832021-12-310001611983srt:BoardOfDirectorsChairmanMember2022-06-132022-06-130001611983lbrda:CharterCommunicationsMemberus-gaap:CommonClassAMemberus-gaap:SubsequentEventMember2022-07-012022-07-310001611983lbrda:CharterCommunicationsMemberus-gaap:CommonClassAMember2022-01-012022-06-300001611983lbrda:CharterCommunicationsMemberus-gaap:CommonClassAMember2021-01-012021-06-300001611983lbrda:CharterCommunicationsMember2022-06-300001611983lbrda:CharterCommunicationsMember2021-12-310001611983lbrda:CharterMember2022-01-012022-06-300001611983lbrda:SkyhookHoldingIncMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-04-012022-06-300001611983lbrda:SkyhookHoldingIncMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-01-012022-06-300001611983lbrda:SkyhookHoldingIncMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2021-04-012021-06-300001611983lbrda:SkyhookHoldingIncMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2021-01-012021-06-300001611983lbrda:SkyhookHoldingIncMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-05-020001611983lbrda:GciLlcMemberlbrda:SeniorCreditFacilityMember2022-01-012022-06-300001611983lbrda:GciLlcMemberlbrda:TermLoanaMemberus-gaap:LineOfCreditMember2021-10-152021-10-150001611983lbrda:SpvMemberlbrda:MarginLoanAgreementsMember2022-01-012022-06-300001611983lbrda:SpvMemberlbrda:MarginLoanAgreementsMember2022-06-300001611983us-gaap:SeniorNotesMember2022-06-300001611983us-gaap:NotesPayableToBanksMember2022-06-300001611983us-gaap:LineOfCreditMember2022-06-300001611983lbrda:ExchangeableSeniorDebentures2.75PercentDue2050Member2022-06-300001611983lbrda:ExchangeableSeniorDebentures1.75PercentDue2046Member2022-06-300001611983lbrda:ExchangeableSeniorDebentures1.25PercentDue2050Member2022-06-300001611983lbrda:SpvMemberlbrda:MarginLoanAgreementsMember2021-12-310001611983us-gaap:SeniorNotesMember2021-12-310001611983us-gaap:NotesPayableToBanksMember2021-12-310001611983us-gaap:LineOfCreditMember2021-12-310001611983lbrda:ExchangeableSeniorDebentures2.75PercentDue2050Member2021-12-310001611983lbrda:ExchangeableSeniorDebentures1.75PercentDue2046Member2021-12-310001611983lbrda:ExchangeableSeniorDebentures1.25PercentDue2050Member2021-12-310001611983lbrda:SpvMemberlbrda:TermLoanMember2021-05-120001611983srt:ChiefExecutiveOfficerMemberlbrda:LibertyMediaCorporationAndItsSubsidiariesMember2021-01-012021-12-310001611983us-gaap:OperatingSegmentsMemberlbrda:GciHoldingsMember2022-04-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:CharterMember2022-04-012022-06-300001611983us-gaap:IntersegmentEliminationMember2022-04-012022-06-300001611983us-gaap:CorporateNonSegmentMember2022-04-012022-06-300001611983lbrda:OperatingSegmentsAndCorporateNonSegmentMember2022-04-012022-06-3000016119832022-04-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:GciHoldingsMember2022-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:CharterMember2022-01-012022-06-300001611983us-gaap:IntersegmentEliminationMember2022-01-012022-06-300001611983us-gaap:CorporateNonSegmentMember2022-01-012022-06-300001611983lbrda:OperatingSegmentsAndCorporateNonSegmentMember2022-01-012022-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:GciHoldingsMember2021-04-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:CharterMember2021-04-012021-06-300001611983us-gaap:IntersegmentEliminationMember2021-04-012021-06-300001611983us-gaap:CorporateNonSegmentMember2021-04-012021-06-300001611983lbrda:OperatingSegmentsAndCorporateNonSegmentMember2021-04-012021-06-3000016119832021-04-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:GciHoldingsMember2021-01-012021-06-300001611983us-gaap:OperatingSegmentsMemberlbrda:CharterMember2021-01-012021-06-300001611983us-gaap:IntersegmentEliminationMember2021-01-012021-06-300001611983us-gaap:CorporateNonSegmentMember2021-01-012021-06-300001611983lbrda:OperatingSegmentsAndCorporateNonSegmentMember2021-01-012021-06-3000016119832021-01-012021-06-300001611983us-gaap:CommonClassCMember2022-01-012022-06-300001611983us-gaap:CommonClassAMember2022-01-012022-06-300001611983lbrda:SeriesCumulativeRedeemablePreferredStockMember2022-01-012022-06-300001611983us-gaap:CommonClassCMember2022-07-310001611983us-gaap:CommonClassBMember2022-07-310001611983us-gaap:CommonClassAMember2022-07-3100016119832022-01-012022-06-30xbrli:sharesiso4217:USDxbrli:purelbrda:periodlbrda:Votexbrli:sharesiso4217:USDxbrli:shareslbrda:plaintiff

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-36713

LIBERTY BROADBAND CORPORATION

(Exact name of Registrant as specified in its charter)

State of Delaware

47-1211994

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

12300 Liberty Boulevard
Englewood, Colorado

80112

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (720875-5700

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Series A common stock

LBRDA

The Nasdaq Stock Market LLC

Series C common stock

LBRDK

The Nasdaq Stock Market LLC

Series A Cumulative Redeemable preferred stock

LBRDP

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer 

Accelerated Filer 

Non-accelerated Filer 

Smaller Reporting Company 

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes  No 

The number of outstanding shares of Liberty Broadband Corporation’s common stock as of July 31, 2022 was:

Series A

Series B

Series C

Liberty Broadband Corporation common stock

19,840,246

2,117,646

131,826,791

Table of Contents

Part I - Financial Information

f

Page No

Item 1. Financial Statements

LIBERTY BROADBAND CORPORATION Condensed Consolidated Balance Sheets (unaudited)

I-2

LIBERTY BROADBAND CORPORATION Condensed Consolidated Statements of Operations (unaudited)

I-4

LIBERTY BROADBAND CORPORATION Condensed Consolidated Statements of Comprehensive Earnings (Loss) (unaudited)

I-5

LIBERTY BROADBAND CORPORATION Condensed Consolidated Statements of Cash Flows (unaudited)

I-6

LIBERTY BROADBAND CORPORATION Condensed Consolidated Statements of Equity (unaudited)

I-7

LIBERTY BROADBAND CORPORATION Notes to Condensed Consolidated Financial Statements (unaudited)

I-9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

I-27

Item 3. Quantitative and Qualitative Disclosures about Market Risk

I-40

Item 4. Controls and Procedures

I-41

Part II - Other Information

Item 1. Legal Proceedings

II-1

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

II-1

Item 6. Exhibits

II-2

SIGNATURES

II-3

I-1

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Balance Sheets

(unaudited)

June 30,

December 31,

2022

2021

 

amounts in millions

 

Assets

    

    

    

    

Current assets:

Cash and cash equivalents

$

301

 

191

Trade and other receivables, net of allowance for credit losses of $4 and $4, respectively

179

206

Prepaid and other current assets

 

71

 

62

Total current assets

 

551

 

459

Investment in Charter, accounted for using the equity method (note 4)

 

12,051

 

13,260

Property and equipment, net

1,013

1,031

Intangible assets not subject to amortization

Goodwill

755

762

Cable certificates

550

550

Other

37

37

Intangible assets subject to amortization, net (note 5)

546

573

Tax sharing receivable

44

86

Other assets, net

 

191

 

210

Total assets

$

15,738

 

16,968

See accompanying notes to the condensed consolidated financial statements.

I-2

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Balance Sheets (Continued)

(unaudited)

June 30,

December 31,

2022

2021

 

amounts in millions,

 

except share amounts

Liabilities and Equity

Current liabilities:

Accounts payable and accrued liabilities

$

100

 

99

Deferred revenue

 

21

 

25

Current portion of debt, including zero and $25 measured at fair value, respectively (note 6)

3

28

Indemnification obligation (note 3)

175

324

Other current liabilities

149

106

Total current liabilities

 

448

 

582

Long-term debt, net, including $1,342 and $1,403 measured at fair value, respectively (note 6)

3,770

3,733

Obligations under finance leases and tower obligations, excluding current portion

88

89

Long-term deferred revenue

36

35

Deferred income tax liabilities

1,999

1,998

Preferred stock (note 7)

203

203

Other liabilities

166

189

Total liabilities

 

6,710

 

6,829

Equity

Series A common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 21,633,055 and 23,232,342 at June 30, 2022 and December 31, 2021, respectively

Series B common stock, $.01 par value. Authorized 18,750,000 shares; issued and outstanding 2,328,901 and 2,544,548 at June 30, 2022 and December 31, 2021, respectively

Series C common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 132,311,691 and 144,854,780 at June 30, 2022 and December 31, 2021, respectively

1

1

Additional paid-in capital

4,319

6,214

Accumulated other comprehensive earnings, net of taxes

 

30

 

14

Retained earnings

 

4,662

 

3,898

Total stockholders' equity

9,012

10,127

Non-controlling interests

16

12

Total equity

 

9,028

 

10,139

Commitments and contingencies (note 9)

 

 

Total liabilities and equity

$

15,738

 

16,968

See accompanying notes to the condensed consolidated financial statements.

I-3

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Statements of Operations

(unaudited)

Three months ended 

Six months ended

 

June 30,

June 30,

 

2022

    

2021

    

2022

2021

 

amounts in millions, except per share amounts

Revenue

$

239

242

477

489

Operating costs and expenses:

Operating expense (exclusive of depreciation and amortization shown separately below)

60

67

126

 

136

Selling, general and administrative, including stock-based compensation (note 8)

105

110

206

 

215

Depreciation and amortization

65

67

129

 

131

Litigation settlement, net of recoveries (note 9)

10

10

110

240

244

471

 

592

Operating income (loss)

(1)

(2)

6

 

(103)

Other income (expense):

Interest expense (including amortization of deferred loan fees)

(30)

(29)

(56)

(62)

Share of earnings (losses) of affiliate (note 4)

386

249

689

 

438

Gain (loss) on dilution of investment in affiliate (note 4)

(11)

(15)

(67)

 

(97)

Realized and unrealized gains (losses) on financial instruments, net (note 3)

77

(125)

214

 

(26)

Gain (loss) on dispositions, net (note 1)

179

179

Other, net

(18)

23

(39)

 

15

Earnings (loss) before income taxes

582

101

926

 

165

Income tax benefit (expense)

(117)

(45)

(162)

 

(57)

Net earnings (loss)

465

56

764

108

Less net earnings (loss) attributable to the non-controlling interests

Net earnings (loss) attributable to Liberty Broadband shareholders

$

465

56

764

 

108

Basic net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2)

$

2.89

0.30

4.66

0.57

Diluted net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2)

$

2.87

0.30

4.63

0.56

See accompanying notes to the condensed consolidated financial statements.

I-4

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Statements of Comprehensive Earnings (Loss)

(unaudited)

Three months ended

Six months ended

 

June 30,

June 30,

 

2022

    

2021

    

2022

2021

 

amounts in millions

 

Net earnings (loss)

    

$

465

56

764

    

108

Other comprehensive earnings (loss), net of taxes:

Comprehensive earnings (loss) attributable to debt credit risk adjustments

20

(4)

16

 

(4)

Other comprehensive earnings (loss), net of taxes

20

(4)

16

(4)

Comprehensive earnings (loss)

485

52

780

 

104

Less comprehensive earnings (loss) attributable to the non-controlling interests

Comprehensive earnings (loss) attributable to Liberty Broadband shareholders

$

485

52

780

 

104

See accompanying notes to the condensed consolidated financial statements.

I-5

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Statements of Cash Flows

(unaudited)

Six months ended

June 30,

 

2022

2021

 

amounts in millions

 

Cash flows from operating activities:

    

    

    

    

Net earnings (loss)

$

764

 

108

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

Depreciation and amortization

 

129

 

131

Stock-based compensation

 

18

 

20

Litigation settlement, net of recoveries

10

110

Share of (earnings) losses of affiliate, net

 

(689)

 

(438)

(Gain) loss on dilution of investment in affiliate

 

67

 

97

Realized and unrealized (gains) losses on financial instruments, net

 

(214)

 

26

Deferred income tax expense (benefit)

 

1

 

(18)

(Gain) loss on dispositions, net

(179)

Other, net

 

(3)

 

(2)

Changes in operating assets and liabilities:

Current and other assets

 

113

 

137

Payables and other liabilities

 

1

 

(60)

Net cash provided by (used in) operating activities

 

18

 

111

Cash flows from investing activities:

Capital expenditures

(78)

(50)

Cash received for Charter shares repurchased by Charter

1,806

1,762

Cash proceeds from dispositions, net

163

Other investing activities, net

4

2

Net cash provided by (used in) investing activities

1,895

1,714

Cash flows from financing activities:

Borrowings of debt

300

717

Repayments of debt, finance leases and tower obligations

(203)

(1,781)

Repurchases of Liberty Broadband common stock

(1,890)

(1,957)

Other financing activities, net

 

(3)

 

(2)

Net cash provided by (used in) financing activities

 

(1,796)

 

(3,023)

Net increase (decrease) in cash, cash equivalents and restricted cash

117

 

(1,198)

Cash, cash equivalents and restricted cash, beginning of period

206

1,433

Cash, cash equivalents and restricted cash, end of period

$

323

235

The following table reconciles cash and cash equivalents and restricted cash reported in the accompanying condensed consolidated balance sheets to the total amount presented in the accompanying condensed consolidated statement of cash flows:

June 30,

December 31,

2022

2021

amounts in millions

Cash and cash equivalents

$

301

191

Restricted cash included in other current assets

22

15

Total cash and cash equivalents and restricted cash at end of period

$

323

206

See accompanying notes to the condensed consolidated financial statements.

I-6

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Statements of Equity

(unaudited)

Accumulated

Noncontrolling

Additional

other

interest in

Common stock

paid-in

comprehensive

Retained

equity of

Series A

  

Series B

  

Series C

  

capital

earnings

earnings

subsidiaries

Total equity

amounts in millions

Balance at January 1, 2022

    

$

1

6,214

    

14

    

3,898

12

    

10,139

Net earnings (loss)

 

 

764

 

764

Other comprehensive earnings (loss), net of taxes

16

16

Stock-based compensation

18

18

Withholding taxes on net share settlements of stock-based compensation

(3)

(3)

Liberty Broadband stock repurchases

(1,890)

(1,890)

Noncontrolling interest activity at Charter and other

(20)

4

(16)

Balance at June 30, 2022

$

1

4,319

 

30

 

4,662

16

 

9,028

Accumulated

Noncontrolling

 

Additional

other

interest in

 

Common stock

paid-in

comprehensive

Retained

equity of

 

Series A

  

Series B

  

Series C

  

capital

earnings

earnings

subsidiaries

Total equity

 

amounts in millions

 

Balance at March 31, 2022

$

1

5,375

 

10

 

4,197

16

 

9,599

Net earnings (loss)

465

465

Other comprehensive earnings (loss), net of taxes

20

20

Stock-based compensation

9

9

Liberty Broadband stock repurchases

(1,047)

(1,047)

Noncontrolling interest activity at Charter and other

(18)

(18)

Balance at June 30, 2022

$

1

4,319

30

4,662

16

9,028

See accompanying notes to the condensed consolidated financial statements.

I-7

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Statements of Equity (continued)

(unaudited)

Accumulated

Noncontrolling

Additional

other

interest in

Common stock

paid-in

comprehensive

Retained

equity of

Series A

  

Series B

  

Series C

  

capital

earnings

earnings

subsidiaries

Total equity

amounts in millions

Balance at January 1, 2021

$

2

10,320

15

3,166

12

13,515

Net earnings (loss)

108

108

Other comprehensive earnings (loss), net of taxes

(4)

(4)

Stock-based compensation

20

20

Issuance of common stock upon exercise of stock options

1

1

Withholding taxes on net share settlements of stock-based compensation

(3)

(3)

Liberty Broadband stock repurchases

(1,957)

(1,957)

Noncontrolling interest activity at Charter and other

150

150

Balance at June 30, 2021

$

2

8,531

11

3,274

12

11,830

Accumulated

Noncontrolling

 

Additional

other

interest in

 

Common stock

paid-in

comprehensive

Retained

equity of

 

Series A

  

Series B

  

Series C

  

capital

earnings

earnings

subsidiaries

Total equity

 

amounts in millions

 

Balance at March 31, 2021

    

$

2

9,563

15

3,218

12

12,810

Net earnings (loss)

 

56

56

Other comprehensive earnings (loss), net of taxes

(4)

(4)

Stock-based compensation

10

10

Issuance of common stock upon exercise of stock options

1

1

Liberty Broadband stock repurchases

(1,219)

(1,219)

Noncontrolling interest activity at Charter and other

176

176

Balance at June 30, 2021

$

2

8,531

11

3,274

12

11,830

See accompanying notes to the condensed consolidated financial statements.

I-8

Table of Contents

LIBERTY BROADBAND CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

(1) Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of Liberty Broadband Corporation and its controlled subsidiaries (collectively, "Liberty Broadband," the "Company," “us,” “we,” or “our” unless the context otherwise requires). Liberty Broadband Corporation is primarily comprised of GCI Holdings, LLC (“GCI Holdings”), a wholly owned subsidiary, and an equity method investment in Charter Communications, Inc. (“Charter”).

On December 18, 2020, GCI Liberty, Inc. (“GCI Liberty”) was merged with Liberty Broadband (the “Combination”) and Liberty Broadband acquired GCI Holdings, as further described in Liberty Broadband's Annual Reports on Form 10-K for the years ended December 31, 2021 and 2020.

The accompanying (a) condensed consolidated balance sheet as of December 31, 2021, which has been derived from audited financial statements, and (b) interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. The results of operations for any interim period are not necessarily indicative of results for the full year. Additionally, certain prior period amounts have been reclassified for comparability with current period presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Liberty Broadband's Annual Report on Form 10-K for the year ended December 31, 2021. All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company considers (i) the application of the equity method of accounting for its affiliate, (ii) non-recurring fair value measurements of non-financial instruments and (iii) accounting for income taxes to be its most significant estimates.

In December 2019, Chinese officials reported a novel coronavirus outbreak (“COVID-19”). COVID-19 has since spread through China and internationally. On March 11, 2020, the World Health Organization assessed COVID-19 as a global pandemic, causing many countries throughout the world to take aggressive actions, including imposing travel restrictions and stay-at-home orders, closing public attractions and restaurants, and mandating social distancing practices, which caused a significant disruption to most sectors of the economy at varying levels during the periods covered by the financial statements.

We are not presently aware of any events or circumstances arising from the COVID-19 pandemic that would require us to update our estimates or judgments or revise the carrying value of our assets or liabilities. Our estimates may change, however, as new events occur and additional information is obtained, and any such changes will be recognized in the condensed consolidated financial statements. Actual results could differ from estimates, and any such differences may be material to our financial statements.

Through a number of prior years’ transactions, including the Combination, Liberty Broadband has acquired an interest in Charter. The investment in Charter is accounted for using the equity method. Liberty Broadband does not control the decision making process or business management practices of this affiliate. Accordingly, Liberty Broadband relies on the management of this affiliate to provide it with accurate financial information prepared in accordance with GAAP that the Company uses in the application of the equity method. In addition, Liberty Broadband relies on audit reports that are provided by the affiliate's independent auditor on the financial statements of such affiliate. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliate that would have a material effect on Liberty Broadband's condensed consolidated financial statements.

I-9

Table of Contents

LIBERTY BROADBAND CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

Skyhook Holdings, Inc. (“Skyhook”) was a wholly owned subsidiary of Liberty Broadband until its sale on May 2, 2022 for aggregate consideration of approximately $194 million, including amounts held in escrow of approximately $23 million. Liberty Broadband recognized a gain on the sale of $179 million, net of fees contingent upon closing, in the second quarter of 2022, which is recorded in Gain (loss) on dispositions, net in the accompanying condensed consolidated statement of operations. Skyhook is included in Corporate and other through April 30, 2022 and is not presented as a discontinued operation as the sale did not represent a strategic shift that had a major effect on Liberty Broadband’s operations and financial results. Included in Revenue in the accompanying condensed consolidated statements of operations is $1 million and $5 million for the three months ended June 30, 2022 and 2021, respectively, and $6 million and $9 million for the six months ended June 30, 2022 and 2021, respectively, related to Skyhook. Included in Net earnings (loss) in the accompanying condensed consolidated statement of operations are earnings of $1 million and losses of $1 million for the three months ended June 30, 2022 and 2021, respectively, and earnings of $4 million and losses of $1 million for the six months ended June 30, 2022 and 2021, respectively, related to Skyhook. Included in Total assets in the accompanying condensed consolidated balance sheets as of December 31, 2021 is $18 million related to Skyhook.

As described in note 4, we are currently participating in Charter’s share buyback program in order to maintain our fully diluted ownership percentage of 26%. The primary use of those proceeds has been to repurchase Liberty Broadband Series A and Series C common stock pursuant to our authorized share repurchase programs. On February 23, 2021, a duly authorized committee of the board of directors authorized the repurchase of $2.23 billion of Liberty Broadband common stock. Additionally, on August 5, 2021, a duly authorized committee of the board of directors authorized the repurchase of an additional $2.105 billion of Liberty Broadband common stock. Further, on January 26, 2022, a duly authorized committee of the board of directors authorized the repurchase of an additional $2.215 billion of Liberty Broadband common stock.

During the six months ended June 30, 2022, we repurchased 14.4 million shares of Liberty Broadband Series A and Series C common stock for a total purchase price of $1,890 million. During the six months ended June 30, 2021, we repurchased 12.5 million shares of Liberty Broadband Series C common stock for a total purchase price of $1,957 million. As of June 30, 2022, the amount authorized remaining under the authorized repurchase program is approximately $994 million.

Exchange Agreement with Chairman

On June 13, 2022, Liberty Broadband entered into an Exchange Agreement with its Chairman of the board of directors, John C. Malone, and a revocable trust of which Mr. Malone is the sole trustee and beneficiary (the “JM Trust”) (the “Exchange Agreement”), whereby, among other things, Mr. Malone agreed to an arrangement under which his aggregate voting power in the Company would not exceed 49% (the “Target Voting Power”) plus 0.5% (under certain circumstances).

The Exchange Agreement provides for exchanges by the Company and Mr. Malone or the JM Trust of shares of Liberty Broadband Series B common stock for shares of Liberty Broadband Series C common stock in connection with certain events, including (i) any event that would result in a reduction in the outstanding votes that may be cast by holders of the Company’s voting securities or an increase of Mr. Malone’s beneficially-owned voting power in the Company (an “Accretive Event”), in each case, such that Mr. Malone’s voting power in the Company would exceed the Target Voting Power plus 0.5%; or (ii) from and after the occurrence of any Accretive Event, in connection with any event that would result in an increase in the outstanding votes that may be cast by holders of the Company’s voting securities or a decrease of Mr. Malone’s beneficially-owned voting power in the Company (a “Dilutive Event”), in each case, such that Mr. Malone’s voting power in the Company falls below the Target Voting Power less 0.5%. Additionally, the Exchange Agreement contains certain provisions with respect to fundamental events at the Company, meaning any combination, consolidation, merger, exchange offer, split-off, spin-off, rights offering or dividend, in each case, as a result of which holders of Liberty Broadband Series B common stock are entitled to receive securities of the Company, securities of another person, property or cash, or a combination thereof.

In connection with an Accretive Event, Mr. Malone or the JM Trust will be required to exchange with the Company shares of Liberty Broadband Series B common stock (as exchanged, the “Exchanged Series B Shares”) for an equal number

I-10

Table of Contents

LIBERTY BROADBAND CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

of shares of Liberty Broadband Series C common stock (as exchanged, the “Exchanged Series C Shares”) so as to maintain Mr. Malone’s voting power as close as possible to, without exceeding, the Target Voting Power, on the terms and subject to the conditions of the Exchange Agreement.

In connection with a Dilutive Event, Mr. Malone and the JM Trust may exchange the Exchanged Series C Shares with the Company for an equal number of shares of Liberty Broadband Series B common stock equal to the lesser of (i) the number of shares of Liberty Broadband Series B common stock which would maintain Mr. Malone’s voting power as close as possible to, without exceeding, the Target Voting Power and (ii) the number of Exchanged Series B Shares at such time, on the terms and subject to the conditions of the Exchange Agreement.

Under the Exchange Agreement, the JM trust exchanged 215,647 shares of Liberty Broadband Series B common stock for the same number of Liberty Broadband Series C common stock on June 13, 2022, and exchanged 211,255 shares of Liberty Broadband Series B common stock for the same number of Liberty Broadband Series C common stock on July 19, 2022.

Spin-Off Arrangements

During May 2014, the board of directors of Liberty Media Corporation and its subsidiaries (“Liberty”) authorized management to pursue a plan to spin-off to its stockholders common stock of a wholly owned subsidiary, Liberty Broadband, and to distribute subscription rights to acquire shares of Liberty Broadband’s common stock (the “Broadband Spin-Off”). In connection with the Broadband Spin-Off, Liberty (for accounting purposes a related party of the Company) and Liberty Broadband entered into certain agreements in order to govern certain of the ongoing relationships between the two companies and to provide for an orderly transition, including a services agreement and a facilities sharing agreement. Under the facilities sharing agreement, Liberty Broadband shares office space with Liberty and related amenities at Liberty’s corporate headquarters. Liberty Broadband will reimburse Liberty for direct, out-of-pocket expenses incurred by Liberty in providing these services which will be negotiated semi-annually.

Pursuant to the services agreement, Liberty provides Liberty Broadband with general and administrative services including legal, tax, accounting, treasury and investor relations support. In December 2019, the Company entered into an amendment to the services agreement with Liberty in connection with Liberty’s entry into a new employment arrangement with Gregory B. Maffei, the Company’s President and Chief Executive Officer. Under the amended services agreement, components of his compensation would either be paid directly to him by each of the Company, Liberty TripAdvisor Holdings, Inc. and Qurate Retail, Inc. (“Qurate Retail”) (collectively, the “Service Companies”) or reimbursed to Liberty, in each case, based on allocations among Liberty and the Service Companies set forth in the amended services agreement, currently set at 33% for the Company but subject to adjustment on an annual basis upon the occurrence of certain events.

Additionally, in connection with a prior transaction, GCI Liberty and Qurate Retail (for accounting purposes a related party of the Company) entered into a tax sharing agreement, which was assumed by Liberty Broadband as a result of the Combination. The tax sharing agreement provides for the allocation and indemnification of tax liabilities and benefits between Qurate Retail and Liberty Broadband and other agreements related to tax matters.

Under these various agreements, amounts reimbursable to Liberty were approximately $2 million and $3 million for the three months ended June 30, 2022 and 2021, respectively, and $5 million and $7 million for the six months ended June 30, 2022 and 2021, respectively. Liberty Broadband had a tax sharing receivable with Qurate Retail of $44 million and $86 million as of June 30, 2022 and December 31, 2021, respectively.

Recently Announced Accounting Pronouncements

In November 2021, the Financial Accounting Standards Board issued new accounting guidance which will require annual disclosures about certain government transactions that are accounted for by applying a grant or contribution accounting

I-11

Table of Contents

LIBERTY BROADBAND CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

model by analogy, including information about the nature of the transactions, the related policy used to account for the transactions, the amounts applicable to each financial statement line item and any significant terms and conditions of the transactions, including commitments and contingencies. This guidance is effective for annual financial statements issued for periods beginning after December 15, 2021, with early adoption permitted. The Company does not expect a significant impact from the adoption of the standard but is currently evaluating the effect that the updated standard will have on its financial disclosures.

(2) Earnings Attributable to Liberty Broadband Stockholders Per Common Share

Basic earnings (loss) per common share (“EPS”) is computed by dividing net earnings (loss) attributable to Liberty Broadband shareholders by the weighted average number of common shares outstanding (“WASO”) for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. Excluded from diluted EPS for the three months ended June 30, 2022 and 2021 are 2 million and 1 million potential common shares, respectively, because their inclusion would have been antidilutive. Excluded from diluted EPS for both the six months ended June 30, 2022 and 2021 are 1 million potential common shares because their inclusion would have been antidilutive.

Liberty Broadband Common Stock

Three months

Three months

Six months

Six months

 

ended

ended

ended

ended

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

 

(numbers of shares in millions)

Basic WASO

 

161

 

188

 

164

 

191

Potentially dilutive shares (1)

 

1

 

2

 

1

 

2

Diluted WASO

 

162

 

190

 

165

 

193

(1) Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive.

(3) Assets and Liabilities Measured at Fair Value

For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company does not have any recurring assets or liabilities measured at fair value that would be considered Level 3.

I-12

Table of Contents

LIBERTY BROADBAND CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

The Company’s assets and (liabilities) measured at fair value are as follows:

June 30, 2022

December 31, 2021

 

Quoted prices

Significant

Quoted prices

Significant

 

in active

other

in active

other

 

markets for

observable

markets for

observable