Liberty Broadband Corp [LBRDP] Filings

Liberty Broadband Corp [LBRDP] Filings

Liberty Broadband Corp [LBRDA] Filings

Liberty Broadband Corp [LBRDB] Filings

Liberty Broadband Corp [LBRDK] Filings

10-Q 1 lbrda-20230930x10q.htm 10-Q

Table of Contents

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 September 30, 2023

☐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: (720) 875-5700

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 October 31, 2023 was:

Table of Contents

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-8
LIBERTY BROADBAND CORPORATION Notes to Condensed Consolidated Financial Statements (unaudited)	I-10

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	I-28
Item 3. Quantitative and Qualitative Disclosures about Market Risk	I-41
Item 4. Controls and Procedures	I-42

Part II - Other Information

Item 1. Legal Proceedings	II-1
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	II-1
Item 5. Other Information	II-2
Item 6. Exhibits	II-2

SIGNATURES	II-3

I-1

Table of Contents

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Balance Sheets

(unaudited)


	September 30,		December 31,
	2023		2022

	amounts in millions
Assets
Current assets:
Cash and cash equivalents	$	88	375
Trade and other receivables, net of allowance for credit losses of $5 and $4, respectively		220	201
Prepaid and other current assets		122	84
Total current assets		430	660
Investment in Charter, accounted for using the equity method (note 4)		12,229	11,433
Property and equipment, net		1,036	1,011
Intangible assets not subject to amortization
Goodwill		755	755
Cable certificates		550	550
Other		40	37
Intangible assets subject to amortization, net (note 5)		477	516
Other assets, net		251	180
Total assets	$	15,768	15,142

See accompanying notes to the condensed consolidated financial statements.

I-2

Table of Contents

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Balance Sheets (Continued)

(unaudited)


	September 30,		December 31,
	2023		2022

	amounts in millions,
	except share amounts
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities	$	104	92
Deferred revenue		28	20
Current portion of debt, including $2 and $1,373 measured at fair value, respectively (note 6)		5	1,376
Indemnification obligation (note 3)		21	50
Other current liabilities		71	137
Total current liabilities		229	1,675
Long-term debt, net, including $1,316 and zero measured at fair value, respectively (note 6)		3,860	2,425
Obligations under tower obligations and finance leases, excluding current portion		83	86
Long-term deferred revenue		66	63
Deferred income tax liabilities		2,184	2,040
Preferred stock (note 7)		202	202
Other liabilities		147	150
Total liabilities		6,771	6,641
Equity
Series A common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 18,231,629 and 18,528,468 at September 30, 2023 and December 31, 2022, respectively		—	—
Series B common stock, $.01 par value. Authorized 18,750,000 shares; issued and outstanding 2,027,232 and 2,106,636 at September 30, 2023 and December 31, 2022, respectively		—	—
Series C common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 125,954,265 and 125,962,296 at September 30, 2023 and December 31, 2022, respectively		1	1
Additional paid-in capital		3,293	3,318
Accumulated other comprehensive earnings (loss), net of taxes		45	9
Retained earnings		5,638	5,155
Total stockholders' equity		8,977	8,483
Non-controlling interests		20	18
Total equity		8,997	8,501
Commitments and contingencies (note 9)
Total liabilities and equity	$	15,768	15,142

See accompanying notes to the condensed consolidated financial statements.

I-3

Table of Contents

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Statements of Operations

(unaudited)


	Three months ended			Nine months ended
	September 30,			September 30,
	2023		2022	2023	2022

	amounts in millions, except per share amounts
Revenue	$	240	248	731	725
Operating costs and expenses:
Operating expense (exclusive of depreciation and amortization shown separately below)		59	64	180	190
Selling, general and administrative, including stock-based compensation (note 8)		105	111	322	317
Depreciation and amortization		55	66	169	195
Litigation settlement (note 9)		—	19	—	29
		219	260	671	731
Operating income (loss)		21	(12)	60	(6)
Other income (expense):
Interest expense (including amortization of deferred loan fees)		(54)	(35)	(151)	(91)
Share of earnings (losses) of affiliate (note 4)		326	309	892	998
Gain (loss) on dilution of investment in affiliate (note 4)		(10)	—	(42)	(67)
Realized and unrealized gains (losses) on financial instruments, net (note 3)		(81)	148	(155)	362
Gain (loss) on dispositions, net (note 1)		—	—	—	179
Other, net		6	(34)	22	(73)
Earnings (loss) before income taxes		208	376	626	1,302
Income tax benefit (expense)		(46)	(61)	(143)	(223)
Net earnings (loss)		162	315	483	1,079
Less net earnings (loss) attributable to the non-controlling interests		—	—	—	—
Net earnings (loss) attributable to Liberty Broadband shareholders	$	162	315	483	1,079
Basic net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2)	$	1.11	2.07	3.31	6.74
Diluted net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2)	$	1.10	2.05	3.29	6.70

See accompanying notes to the condensed consolidated financial statements.

I-4

Table of Contents

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Statements of Comprehensive Earnings (Loss)

(unaudited)


	Three months ended			Nine months ended
	September 30,			September 30,
	2023		2022	2023	2022

	amounts in millions
Net earnings (loss)	$	162	315	483	1,079
Other comprehensive earnings (loss), net of taxes:
Credit risk on fair value debt instruments gains (loss)		(11)	(12)	36	4
Other comprehensive earnings (loss), net of taxes		(11)	(12)	36	4
Comprehensive earnings (loss)		151	303	519	1,083
Less comprehensive earnings (loss) attributable to the non-controlling interests		—	—	—	—
Comprehensive earnings (loss) attributable to Liberty Broadband shareholders	$	151	303	519	1,083

See accompanying notes to the condensed consolidated financial statements.

I-5

Table of Contents

LIBERTY BROADBAND CORPORATION

Condensed Consolidated Statements of Cash Flows

(unaudited)


	Nine months ended
	September 30,
	2023		2022

	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	483	1,079
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		169	195
Stock-based compensation		25	28
Litigation settlement		—	29
Share of (earnings) losses of affiliate, net		(892)	(998)
(Gain) loss on dilution of investment in affiliate		42	67
Realized and unrealized (gains) losses on financial instruments, net		155	(362)
Deferred income tax expense (benefit)		137	16
(Gain) loss on dispositions, net		—	(179)
Other, net		(3)	(3)
Changes in operating assets and liabilities:
Current and other assets		(60)	131
Payables and other liabilities		(102)	(63)
Net cash provided by (used in) operating activities		(46)	(60)
Cash flows from investing activities:
Capital expenditures		(149)	(132)
Grant proceeds received for capital expenditures		6	—
Cash received for Charter shares repurchased by Charter		42	2,602
Cash proceeds from dispositions, net		—	163
Cash released from escrow related to dispositions		23	—
Purchases of investments		(53)	—
Other investing activities, net		2	4
Net cash provided by (used in) investing activities		(129)	2,637
Cash flows from financing activities:
Borrowings of debt		1,501	300
Repayments of debt, tower obligations and finance leases		(1,547)	(203)
Repurchases of Liberty Broadband common stock		(40)	(2,641)
Indemnification payment to Qurate Retail		(26)	—
Other financing activities, net		(3)	(5)
Net cash provided by (used in) financing activities		(115)	(2,549)
Net increase (decrease) in cash, cash equivalents and restricted cash		(290)	28
Cash, cash equivalents and restricted cash, beginning of period		400	206
Cash, cash equivalents and restricted cash, end of period	$	110	234

I-6

Table of Contents

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:


	September 30,		December 31,
	2023		2022

	amounts in millions
Cash and cash equivalents	$	88	375
Restricted cash included in other current assets		20	24
Restricted cash included in other long-term assets		2	1
Total cash and cash equivalents and restricted cash at end of period	$	110	400

See accompanying notes to the condensed consolidated financial statements.

I-7

Table of Contents

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, 2023	$	—	—	1	3,318	9	5,155	18	8,501
Net earnings (loss)		—	—	—	—	—	483	—	483
Other comprehensive earnings (loss), net of taxes		—	—	—	—	36	—	—	36
Stock-based compensation		—	—	—	25	—	—	—	25
Liberty Broadband stock repurchases		—	—	—	(40)	—	—	—	(40)
Noncontrolling interest activity at Charter and other		—	—	—	(10)	—	—	2	(8)
Balance at September 30, 2023	$	—	—	1	3,293	45	5,638	20	8,997


						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 June 30, 2023	$	—	—	1	3,286	56	5,476	20	8,839
Net earnings (loss)		—	—	—	—	—	162	—	162
Other comprehensive earnings (loss), net of taxes		—	—	—	—	(11)	—	—	(11)
Stock-based compensation		—	—	—	9	—	—	—	9
Noncontrolling interest activity at Charter and other		—	—	—	(2)	—	—	—	(2)
Balance at September 30, 2023	$	—	—	1	3,293	45	5,638	20	8,997

See accompanying notes to the condensed consolidated financial statements.

I-8

Table of Contents

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, 2022	$	—	—	1	6,214	14	3,898	12	10,139
Net earnings (loss)		—	—	—	—	—	1,079	—	1,079
Other comprehensive earnings (loss), net of taxes		—	—	—	—	4	—	—	4
Stock-based compensation		—	—	—	28	—	—	—	28
Liberty Broadband stock repurchases		—	—	—	(2,641)	—	—	—	(2,641)
Noncontrolling interest activity at Charter and other		—	—	—	(37)	—	—	4	(33)
Balance at September 30, 2022	$	—	—	1	3,564	18	4,977	16	8,576


						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 June 30, 2022	$	—	—	1	4,319	30	4,662	16	9,028
Net earnings (loss)		—	—	—	—	—	315	—	315
Other comprehensive earnings (loss), net of taxes		—	—	—	—	(12)	—	—	(12)
Stock-based compensation		—	—	—	10	—	—	—	10
Liberty Broadband stock repurchases		—	—	—	(751)	—	—	—	(751)
Noncontrolling interest activity at Charter and other		—	—	—	(14)	—	—	—	(14)
Balance at September 30, 2022	$	—	—	1	3,564	18	4,977	16	8,576

See accompanying notes to the condensed consolidated financial statements.

I-9

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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” or “GCI”), 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.

The accompanying (a) condensed consolidated balance sheet as of December 31, 2022, 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, 2022. 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.

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.

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 that were released to Liberty Broadband on May 3, 2023. Liberty Broadband recognized a gain on the sale of $179 million, net of closing fees, 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 zero and $6 million for the three and nine months ended September 30, 2022, respectively, related to Skyhook. Included in Net earnings (loss) in the accompanying condensed consolidated statement of operations was zero and earnings of $4 million for the three and nine months ended September 30, 2022, respectively, related to Skyhook.

I-10

Table of Contents

LIBERTY BROADBAND CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

As described in note 4, we are 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. In addition, some of the proceeds were used for debt repayments.

During the nine months ended September 30, 2023, we repurchased an aggregate of 459 thousand shares of Liberty Broadband Series A and Series C common stock for a total purchase price of $40 million. During the nine months ended September 30, 2022, we repurchased an aggregate of 21.2 million shares of Liberty Broadband Series A and Series C common stock for a total purchase price of $2,641 million. As of September 30, 2023, the amount remaining under the authorized repurchase program is approximately $1,962 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”). 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. Additionally, the JM Trust exchanged 54,247 shares of Liberty Broadband Series B common stock for the same number of Liberty Broadband Series C common stock on January 23, 2023.

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 reimburses Liberty for direct, out-of-pocket expenses incurred by Liberty in providing these services which are 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. Pursuant to the services agreement with Liberty, in connection with Liberty’s employment arrangement with Gregory B. Maffei, the Company’s President and Chief Executive Officer, components of Mr. Maffei’s compensation will either be paid directly to him by each of the Company, Liberty TripAdvisor Holdings, Inc., Atlanta Braves 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 23% for the Company but subject to adjustment on an annual basis and 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 September 30, 2023 and 2022, respectively, and $5 million and $8 million for the nine months ended September 30, 2023 and 2022, respectively. Liberty Broadband had a tax sharing receivable with Qurate Retail of $18 million

I-11

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LIBERTY BROADBAND CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

and $7 million as of September 30, 2023 and December 31, 2022, respectively, of which zero and $1 million were in Other current assets as of September 30, 2023 and December 31, 2022, respectively, with the remaining receivable in Other assets, net.

(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 both the three months ended September 30, 2023 and 2022 are 2 million potential common shares, because their inclusion would have been antidilutive. Excluded from diluted EPS for the nine months ended September 30, 2023 and 2022 are 2 million and 1 million potential common shares, respectively, because their inclusion would have been antidilutive.


	Liberty Broadband Common Stock
	Three months	Three months	Nine months	Nine months
	ended	ended	ended	ended
	September 30, 2023	September 30, 2022	September 30, 2023	September 30, 2022

	(numbers of shares in millions)
Basic WASO	146	152	146	160
Potentially dilutive shares (1)	1	2	1	1
Diluted WASO	147	154	147	161

(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

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LIBERTY BROADBAND CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

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


	September 30, 2023				December 31, 2022
			Quoted prices	Significant		Quoted prices	Significant
			in active	other		in active	other
			markets for	observable		markets for	observable
			identical assets	inputs		identical assets	inputs
Description	Total		(Level 1)	(Level 2)	Total	(Level 1)	(Level 2)

	amounts in millions
Cash equivalents	$	49	49	—	288	288	—
Indemnification obligation	$	21	—	21	50	—	50
Exchangeable senior debentures	$	1,318	—	1,318	1,373	—	1,373

Pursuant to an indemnification agreement initially entered into by GCI Liberty and assumed by Liberty Broadband in connection with the Combination, Liberty Broadband has agreed to indemnify Liberty Interactive LLC (“LI LLC”), a subsidiary of Qurate Retail, for certain payments made to holders of LI LLC’s 1.75% exchangeable debentures due 2046 (the "LI LLC

Liberty Broadband Corp [LBRDP] Filings
Liberty Broadband Corp [LBRDA] Filings
Liberty Broadband Corp [LBRDB] Filings
Liberty Broadband Corp [LBRDK] Filings
10-Q	[2023-11-03]
10-Q	[2023-08-04]
10-Q	[2023-05-02]
10-K	[2023-02-17]
10-Q	[2022-11-04]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-25]
10-Q	[2021-11-04]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-02-26]
10-Q	[2020-11-04]
10-Q	[2020-07-31]
10-Q	[2020-05-01]
10-K	[2020-02-03]
10-Q	[2019-11-01]
10-Q	[2019-08-01]
10-Q	[2019-05-02]
10-K	[2019-02-08]
10-Q	[2018-11-01]
10-Q	[2018-08-02]
10-Q	[2018-05-02]
10-K	[2018-02-09]
10-Q	[2017-11-01]
10-Q	[2017-08-02]
10-Q	[2017-05-03]
10-K	[2017-02-17]
10-Q	[2016-11-04]
10-Q	[2016-08-09]
10-Q	[2016-05-09]
10-K	[2016-02-12]
10-Q	[2015-11-10]
10-Q	[2015-08-13]
10-Q	[2015-05-14]
10-K	[2015-03-12]
10-Q	[2014-12-05]
S-1	[2014-10-16]
S-1	[2014-07-25]

Liberty Broadband Corporation common stock