10q10k10q10k.net

What changed in Liberty Latin America Ltd.'s 10-K — 2022 vs 2023

vs

Paragraph-level year-over-year comparison of Liberty Latin America Ltd.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+432 added−434 removedSource: 10-K (2024-02-22) vs 10-K (2023-02-22)

Top changes in Liberty Latin America Ltd.'s 2023 10-K

432 paragraphs added · 434 removed · 360 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

121 edited+39 added−22 removed217 unchanged
Biggest changeFixed Network and Product Penetration Data (%) Panama Jamaica The Bahamas Trinidad and Tobago Barbados Other C&W Costa Rica Puerto Rico Network data: Two-way homes passed (1) 100 % 100 % 100 % 100 % 100 % 94 % 99 % 100 % Homes passed: Cable (2) 43 % 40 % — % 99 % — % 58 % 84 % 91 % FTTH (2) 53 % 37 % 54 % 1 % 100 % 38 % 16 % 9 % VDSL (2) 4 % 23 % 46 % — % — % 4 % — % — % Product penetration: Television (3) 16 % 19 % 5 % 30 % 27 % 22 % 29 % 21 % Broadband internet (4) 25 % 45 % 19 % 41 % 54 % 59 % 39 % 45 % Fixed-line telephony (4) 24 % 44 % 28 % 28 % 50 % 36 % 8 % 22 % Double-play (5) 32 % 49 % 50 % 18 % 30 % 35 % 44 % 13 % Triple-play (5) 47 % 37 % 12 % 49 % 44 % 20 % 17 % 36 % (1) Percentage of total homes passed that are two-way homes passed.
Biggest changeFixed Network and Product Penetration Data (%) Panama Jamaica The Bahamas Trinidad and Tobago Barbados Other C&W Costa Rica Puerto Rico Network data: Homes passed: Cable 37 % 42 % — % 99 % — % 58 % 80 % 87 % FTTH 57 % 47 % 74 % 1 % 100 % 39 % 20 % 13 % VDSL 6 % 11 % 26 % — % — % 3 % — % — % Product penetration: Television (1) 15 % 18 % 6 % 28 % 28 % 19 % 24 % 20 % Broadband internet (2) 24 % 45 % 21 % 38 % 56 % 52 % 35 % 46 % Fixed-line telephony (2) 23 % 44 % 26 % 27 % 49 % 30 % 10 % 23 % Double-play (3) 34 % 55 % 55 % 19 % 29 % 33 % 40 % 16 % Triple-play (3) 52 % 35 % 22 % 49 % 44 % 21 % 24 % 33 % (1) Percentage of total homes passed that subscribe to television services.
We transmit wireless calls and data through radio frequencies that we use under spectrum licenses. We have a diversified portfolio of frequencies which support LTE and 5G (Puerto Rico & USVI only) technologies. Spectrum is a limited resource, and, as a result, we may face spectrum and capacity constraints on our wireless network in certain countries.
We transmit wireless calls and data through radio frequencies that we use under spectrum licenses. We have a diversified portfolio of frequencies which support LTE and 5G (Puerto Rico and USVI only) technologies. Spectrum is a limited resource, and, as a result, we may face spectrum and capacity constraints on our wireless network in certain countries.
Across all our mobile operations we continually strive to improve our network performance by commissioning annual competitive performance benchmarking studies and undertaking customer experience improvement programs. In Puerto Rico and the USVI, we are a part of the national US Firstnet (Emergency/First Responders) network, which necessitates above-average network resilience and other customer performance requirements, subject to governmental penalties for non-compliance.
Across all our mobile operations we continually strive to improve our network performance by commissioning annual competitive performance benchmarking studies and undertaking customer experience improvement programs. In Puerto Rico and USVI , we are a part of the national US Firstnet (Emergency/First Responders) network, which necessitates above-average network resilience and other customer performance requirements, subject to governmental penalties for non-compliance.
In very rare cases, spectrum previously assigned to C&W Caribbean may be re-allocated by regulatory authorities to other operators in the market. Alternatively, spectrum sought by C&W Caribbean may not be available for grant, due to prior historical grants or due to the need to avoid interference with neighboring markets particularly in the I-16 Caribbean.
In very rare cases, spectrum previously assigned to C&W Caribbean may be re-allocated by I-16 regulatory authorities to other operators in the market. Alternatively, spectrum sought by C&W Caribbean may not be available for grant, due to prior historical grants or due to the need to avoid interference with neighboring markets particularly in the Caribbean.
We currently cannot determine the impact these provisions will have on our operations because national regulators are required to conduct extensive market reviews before adopting specific measures and these measures might be reconsidered in I-17 accordance with the market reviews. St. Kitts and Nevis enacted the bill in 2021 and was later followed by St.
I-17 We currently cannot determine the impact these provisions will have on our operations because national regulators are required to conduct extensive market reviews before adopting specific measures and these measures might be reconsidered in accordance with the market reviews. St. Kitts and Nevis enacted the bill in 2021 and was later followed by St.
Quantitative and Qualitative Disclosures About Market Risk , as well as the following list of some but not all of the factors that could cause actual results or events to differ materially from anticipated results or events: • economic and business conditions and industry trends in the countries in which we operate; • the competitive environment in the industries in the countries in which we operate, including competitor responses to our products and services; • fluctuations in currency exchange rates, inflation rates and interest rates; • our relationships with third-party programming providers and broadcasters, some of which are also offering content directly to consumers, and our ability to maintain access to desirable programming on acceptable economic terms; • our relationships with suppliers and licensors and the ability to maintain equipment, software and certain services; • instability in global financial markets, including sovereign debt issues and related fiscal reforms; • our ability to obtain additional financing and generate sufficient cash to meet our debt obligations; • the impact of restrictions contained in certain of our subsidiaries’ debt instruments; • consumer disposable income and spending levels, including the availability and amount of individual consumer debt; I-2 • changes in consumer viewing preferences and habits, including on mobile devices that function on various operating systems and specifications, limited bandwidth, and different processing power and screen sizes; • customer acceptance of our existing service offerings, including our video, broadband internet, fixed-line telephony, mobile and business service offerings, and of new technology, programming alternatives and other products and services that we may offer in the future; • our ability to manage rapid technological changes; • the impact of 5G and wireless technologies on broadband internet; • our ability to maintain or increase the number of subscriptions to our video, broadband internet, fixed-line telephony and mobile service offerings and our average revenue per household and mobile subscriber; • our ability to provide satisfactory customer service, including support for new and evolving products and services; • our ability to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; • the impact of our future financial performance, or market conditions generally, on the availability, terms and deployment of capital; • changes in, or failure or inability to comply with, government regulations in the countries in which we operate and adverse outcomes from regulatory proceedings; • government intervention that requires opening our broadband distribution networks to competitors; • our ability to renew necessary regulatory licenses, concessions or other operating agreements and to otherwise acquire future spectrum or other licenses that we need to offer new mobile data or other technologies or services; • our ability to obtain regulatory approval and satisfy other conditions necessary to close acquisitions and dispositions, and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions; • our ability to successfully acquire new businesses and, if acquired, to integrate, realize anticipated efficiencies from and implement our business plan with respect to the businesses we have acquired or that we expect to acquire, such as with respect to the AT&T Acquisition, the Liberty Telecomunicaciones Acquisition, and the Claro Panama Acquisition; • changes in laws or treaties relating to taxation, or the interpretation thereof, in the U.S. or in other countries in which we operate and the results of any tax audits or tax disputes; • changes in laws and government regulations that may impact the availability and cost of capital and the derivative instruments that hedge certain of our financial risks; • the ability of suppliers and vendors, including third-party channel providers and broadcasters to timely deliver quality products, equipment, software, services and access; • the availability of attractive programming for our video services and the costs associated with such programming, including retransmission and copyright fees payable to public and private broadcasters; • uncertainties inherent in the development and integration of new business lines and business strategies; • our ability to adequately forecast and plan future network requirements, including the costs and benefits associated with our network extension and upgrade programs; • the availability of capital for the acquisition and/or development of telecommunications networks and services, including property and equipment additions; • problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire, such as with respect to the AT&T Acquisition, the Liberty Telecomunicaciones Acquisition and the Claro Panama Acquisition; • our ability to profit from investments in joint ventures that we do not solely control; I-3 • the effect of any of the identified material weaknesses in our internal control over financial reporting; • piracy, targeted vandalism against our networks, and cybersecurity threats or other security breaches, including the leakage of sensitive customer data, which could harm our business or reputation; • the outcome of any pending or threatened litigation; • the loss of key employees and the availability of qualified personnel; • the effect of any strikes, work stoppages or other industrial actions that could affect our operations; • changes in the nature of key strategic relationships with partners and joint venturers; • our equity capital structure; • our ability to realize the full value of our intangible assets; • changes in and compliance with applicable data privacy laws, rules, and regulations; • our ability to recoup insurance reimbursements and settlements from third-party providers; • our ability to comply with anti-corruption laws and regulations, such as the FCPA; • our ability to comply with economic and trade sanctions laws, such as the U.S.
Quantitative and Qualitative Disclosures About Market Risk , as well as the following list of some but not all of the factors that could cause actual results or events to differ materially from anticipated results or events: • economic and business conditions and industry trends in the countries in which we operate; • the competitive environment in the industries in the countries in which we operate, including competitor responses to our products and services; • fluctuations in currency exchange rates, inflation rates and interest rates; • our relationships with third-party programming providers and broadcasters, some of which are also offering content directly to consumers, and our ability to maintain access to desirable programming on acceptable economic terms; • our relationships with suppliers and licensors and the ability to maintain equipment, software and certain services; • instability in global financial markets, including sovereign debt issues and related fiscal reforms; • our ability to obtain additional financing and generate sufficient cash to meet our debt obligations; • the impact of restrictions contained in certain of our subsidiaries’ debt instruments; • consumer disposable income and spending levels, including the availability and amount of individual consumer debt; • changes in consumer viewing preferences and habits, including on mobile devices that function on various operating systems and specifications, limited bandwidth, and different processing power and screen sizes; I-2 • customer acceptance of our existing service offerings, including our video, broadband internet, fixed-line telephony, mobile and business service offerings, and of new technology, programming alternatives and other products and services that we may offer in the future; • our ability to manage rapid technological changes; • the impact of 5G and wireless technologies; • our ability to maintain or increase the number of subscriptions to our video, broadband internet, fixed-line telephony and mobile service offerings and our average revenue per household and mobile subscriber; • our ability to provide satisfactory customer service, including support for new and evolving products and services; • our ability to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; • the impact of our future financial performance, or market conditions generally, on the availability, terms and deployment of capital; • changes in, or failure or inability to comply with, government regulations in the countries in which we operate and adverse outcomes from regulatory proceedings; • government intervention that requires opening our broadband distribution networks to competitors; • our ability to renew necessary regulatory licenses, concessions or other operating agreements and to otherwise acquire future spectrum or other licenses that we need to offer new mobile data or other technologies or services; • our ability to obtain regulatory approval and satisfy other conditions necessary to close acquisitions and dispositions, and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions, such as with respect to the Puerto Rico and USVI Spectrum Acquisition; • our ability to successfully acquire new businesses and, if acquired, to integrate, realize anticipated efficiencies from and implement our business plan with respect to the businesses we have acquired or that we expect to acquire, such as with respect to the AT&T Acquisition, the Liberty Telecomunicaciones Acquisition, and the Claro Panama Acquisition; • changes in laws or treaties relating to taxation, or the interpretation thereof, in the U.S. or in other countries in which we operate and the results of any tax audits or tax disputes; • changes in laws and government regulations that may impact the availability and cost of capital and the derivative instruments that hedge certain of our financial risks; • the ability of suppliers and vendors, including third-party channel providers and broadcasters to timely deliver quality products, equipment, software, services and access; • the availability of attractive programming for our video services and the costs associated with such programming, including retransmission and copyright fees payable to public and private broadcasters; • uncertainties inherent in the development and integration of new business lines and business strategies; • our ability to adequately forecast and plan future network requirements, including the costs and benefits associated with our network extension and upgrade programs; • the availability of capital for the acquisition and/or development of telecommunications networks and services, including property and equipment additions; • problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire, such as with respect to the AT&T Acquisition, the Liberty Telecomunicaciones Acquisition and the Claro Panama Acquisition; • our ability to profit from investments in joint ventures that we do not solely control; • the effect of any of the identified material weaknesses in our internal control over financial reporting; I-3 • piracy, targeted vandalism against our networks, and cybersecurity threats or other security breaches, including the leakage of sensitive customer data, which could harm our business or reputation; • the outcome of any pending or threatened litigation; • the loss of key employees and the availability of qualified personnel; • the effect of any strikes, work stoppages or other industrial actions that could affect our operations; • changes in the nature of key strategic relationships with partners and joint venturers; • our equity capital structure; • our ability to realize the full value of our intangible assets; • changes in and compliance with applicable data privacy laws, rules, and regulations; • our ability to recoup insurance reimbursements and settlements from third-party providers; • our ability to comply with anti-corruption laws and regulations, such as the FCPA; • our ability to comply with economic and trade sanctions laws, such as the U.S.
Liberty Puerto Rico began offering Lifeline services in April 2019. On November 2, 2020, LCPR received preliminary approval from the FCC for an award of approximately $72 million through the UPR Fund. The funds are in support of providing high-speed broadband access to all locations within 43 of Puerto Rico’s 78 municipalities, representing service to over 914,000 locations.
Liberty Puerto Rico began offering Lifeline services in April 2019. On November 2, 2020, LCPR received preliminary approval from the FCC for an award of approximately $72 million through the UPR Fund. The funds support providing high-speed broadband access to all locations within 43 of Puerto Rico’s 78 municipalities, representing service to over 914,000 locations.
They can also stream a selection of channels and non-linear content on their own devices through “TV Everywhere” mobile applications such as, “Flow Sports” in the Caribbean, “Liberty Go” in Puerto Rico, “+movil Total” in Panama and “Liberty Go” in Costa Rica.
They can also stream a selection of channels and non-linear content on their own devices through “TV Everywhere” mobile applications such as, “Flow Sports” in the Caribbean, “Liberty Go” in Puerto Rico, “+movil Total” in Panama and “Liberty Hogar” in Costa Rica.
In Puerto Rico and Costa Rica we also offer telephony services over our respective networks. We offer multi-feature telephony service over our various fixed networks, including HFC cable, FTTH and copper networks. Depending on location, these services are provided via either circuit-switched telephony or VoIP technology.
In Puerto Rico and Costa Rica we also offer telephony services over our respective networks. We offer multi-feature telephony service over our various fixed networks, including HFC, FTTH and copper networks. Depending on location, these services are provided via either circuit-switched telephony or VoIP technology.
In response to the continued growth in OTT viewing, we have launched a number of innovative video services, including Flow Sports in C&W Caribbean’s markets, +TV Total in C&W Panama, and Liberty Go in Puerto Rico and Costa Rica.
In response to the continued growth in OTT viewing, we have launched a number of innovative video services, including Flow Sports in C&W Caribbean’s markets, +TV Total in C&W Panama, and Liberty Go in Puerto Rico and Liberty Hogar in Costa Rica.
We are also upgrading networks to increase broadband speeds and the services we can deliver for our customers. During the past three years, we passed or upgraded approximately 1 million additional homes and commercial premises.
We are also upgrading networks to increase broadband speeds and the services we can deliver for our customers. During the past three years, we passed or upgraded approximately 1.6 million additional homes and commercial premises.
Communications Act requirements and FCC regulations applicable to the video services provided by Liberty Puerto Rico include, among other things: (1) licensing of communications systems and facilities, such as various spectrum licenses; (2) customer and technical service standards; (3) ownership restrictions; (4) emergency alert systems; (5) disability access, including video description and closed captioning; (6) competitive availability of cable equipment; (7) equal employment obligations; and (8) public, education and government entity access requirements.
I-21 Communications Act requirements and FCC regulations applicable to the video services provided by Liberty Puerto Rico include, among other things: (1) licensing of communications systems and facilities, such as various spectrum licenses; (2) customer and technical service standards; (3) ownership restrictions; (4) emergency alert systems; (5) disability access, including video description and closed captioning; (6) competitive availability of cable equipment; (7) equal employment obligations; and (8) public, education and government entity access requirements.
Liberty Costa Rica Liberty Servicios and Liberty Telecomunicaciones, as telecommunications operators and providers, are subject to regulation and enforcement under Article 121, paragraph 14, of Costa Rica’s Constitution, which enumerates a list of assets that cannot permanently leave the state’s domain, which includes the radio spectrum and the possible methods of its exploitation, the Law No. 8642, General Telecommunications Law (LGT), and Law No. 8860, Law for the Strengthening and Modernization of the Public Entities of the Telecommunications Sector, among other regulations.
Liberty Costa Rica Liberty Servicios, Liberty Telecomunicaciones and Columbus Networks, as telecommunications operators and providers, are subject to regulation and enforcement under Article 121, paragraph 14, of Costa Rica’s Constitution, which enumerates a list of assets that cannot permanently leave the state’s domain, which includes the radio spectrum and the possible methods of its exploitation, the Law No. 8642, General Telecommunications Law (LGT), and Law No. 8860, Law for the Strengthening and Modernization of the Public Entities of the Telecommunications Sector, among other regulations.
I-8 Video, Broadband Internet & Fixed-Line Telephony and Mobile Services Panama Jamaica The Bahamas Trinidad and Tobago Barbados Other C&W Costa Rica Puerto Rico Video services: Network System (1) VDSL/HFC/FTTH VDSL/HFC/FTTH VDSL/FTTH HFC FTTH VDSL/HFC/FTTH HFC/FTTH HFC / FTTH Broadband internet service: Maximum download speed offered ( Mbps ) 1,000 500 600 500 1,000 ~450 (2) 450 1,000 Mobile services: Network Technology (3) LTE LTE LTE — LTE LTE LTE 5G (1) These are the primary systems used for delivery of services in the countries indicated.
Video, Broadband Internet & Fixed-Line Telephony and Mobile Services Panama Jamaica The Bahamas Trinidad and Tobago Barbados Other C&W Costa Rica Puerto Rico Video services: Network System (1) VDSL/HFC/FTTH VDSL/HFC/FTTH VDSL/FTTH HFC / FTTH FTTH VDSL/HFC/FTTH HFC/FTTH HFC / FTTH Broadband internet service: Maximum download speed offered ( Mbps ) 1,000 1,000 1,000 1,000 1,000 >600 (2) 1,000 1,000 Mobile services: Network Technology (3) LTE LTE LTE — LTE LTE LTE 5G I-8 (1) These are the primary systems used for delivery of services in the countries indicated.
Where available, we expect our mobile services will allow us to provide an extensive converged product offering with video, internet and fixed-line telephony, allowing our customers connectivity in and out-of-the-home. We hold spectrum licenses as a mobile network provider, with terms typically ranging from 10 to 15 years across our C&W markets.
Where I-9 available, we expect our mobile services will allow us to provide an extensive converged product offering with video, internet and fixed-line telephony, allowing our customers connectivity in and out-of-the-home. We hold spectrum licenses as a mobile network provider, with terms typically ranging from 10 to 15 years across our C&W markets.
VoIP providers are also subject to federal rules regarding, among other things: (1) customer proprietary network information and c ustomer privacy protections; (2) number portability; (3) network outage reporting; (4) rural call completion; (5) disability access; (6) back-up power obligations; and (7) robocall mitigation. Mobile Services . Liberty Mobile Puerto Rico and Liberty Mobile U.S.
VoIP providers are also subject to federal rules regarding, among other things: (1) customer proprietary network information and c ustomer privacy protections; (2) number portability; (3) network outage reporting; (4) rural call completion; (5) disability access; (6) back-up power obligations; and (7) robocall mitigation. LCPR, Liberty Mobile Puerto Rico and Liberty Mobile U.S.
For a breakdown of revenue by major category, see note 20 to our consolidated financial statements in Part II of this Annual Report on Form 10-K. I-4 Our operating brands include the following: C&W Liberty Puerto Rico Liberty Costa Rica I-5 Operating Data The following tables present certain operating data as of December 31, 2022.
For a breakdown of revenue by major category, see note 20 to our consolidated financial statements in Part II of this Annual Report on Form 10-K. I-4 Our operating brands include the following: C&W Liberty Puerto Rico Liberty Costa Rica I-5 Operating Data The following tables present certain operating data as of December 31, 2023.
Treasury Department’s OFAC; • the impacts of climate change such as rising sea levels or increasing frequency and intensity of certain weather phenomena; and • events that are outside of our control, such as political conditions and unrest in international markets, terrorist attacks, malicious human acts, hurricanes and other natural disasters, pandemics, including the COVID-19 pandemic, and other similar events.
Treasury Department’s OFAC; • the impacts of climate change such as rising sea levels or increasing frequency and intensity of certain weather phenomena; and • events that are outside of our control, such as political conditions and unrest in international markets, terrorist attacks, malicious human acts, hurricanes and other natural disasters, pandemics like the COVID-19 pandemic, and other similar events.
Additionally, we produce original series and stories. Our latest video consumer equipment that is distributed to a growing number of markets, including Puerto Rico, Costa I-15 Rica and Panama, also enables our customers to access, through the Google App Store, leading streaming services such as Netflix, Disney+, HBOMax and Amazon Prime Video.
Additionally, we produce original series and stories. Our latest video consumer equipment that is distributed to a growing number of markets, including Puerto Rico, Costa I-15 Rica and Panama, also enables our customers to access, through the Google App Store, leading streaming services such as Netflix, Disney+, Max and Amazon Prime Video.
“ HFC ” refers to hybrid fiber coaxial cable networks. (2) Represents an average as speeds vary by market. (3) Fastest available technology. “ LTE” refers to the Long Term Evolution Standard. I-9 Products and Services We offer our customers a comprehensive set of converged mobile, broadband, video and fixed-line telephony services.
“ HFC ” refers to hybrid fiber coaxial cable networks. (2) Represents an average as speeds vary by market. (3) Fastest available technology. “ LTE” refers to the Long Term Evolution Standard. Products and Services We offer our customers a comprehensive set of converged mobile, broadband, video and fixed-line telephony services.
I-22 All of the circuit-switched telephony and VoIP services of Liberty Puerto Rico are subject to a charge for the federal USF , which is a fund created under the Communications Act to subsidize telecommunication services in high-cost areas, to provide telecommunications services for low-income consumers, and to provide certain subsidies for schools, libraries and rural healthcare facilities.
All of the circuit-switched telephony and VoIP services of Liberty Puerto Rico are subject to a charge for the federal USF , which is a fund created under the Communications Act to subsidize telecommunication services in high-cost areas, to provide telecommunications services for low-income consumers, and to provide certain subsidies for schools, libraries and rural healthcare facilities.
For example, Rock Mobile announced its intent to launch a business, and has received spectrum to do so, in Jamaica. • C&W Panama . In Panama, we primarily compete with Millicom (through the Tigo brand). • Liberty Puerto Rico . Liberty Puerto Rico competes with T-Mobile US and América Móvil , S.A.B. de C.V.
For example, Rock Mobile announced its intent to launch a business, and has received spectrum to do so, in Jamaica. • C&W Panama . In Panama, we primarily compete with Millicom (through the Tigo brand). I-25 • Liberty Puerto Rico . Liberty Puerto Rico competes with T-Mobile US and América Móvil , S.A.B. de C.V.
A CRU represents an individual receiving mobile services through an organization that has entered into a contract for mobile services with us and where the organization is responsible for the payment of the CRU’s mobile services. (b) Our homes passed in Liberty Costa Rica include 57,000 homes on a third-party network that provides us long-term access.
A CRU represents an individual receiving mobile services through an organization that has entered into a contract for mobile services with us and where the organization is responsible for the payment of the CRU’s mobile services. (b) Our homes passed in Liberty Costa Rica include 54,000 homes on a third-party network that provides us long-term access.
I-21 Internet. Liberty Puerto Rico offers high-speed internet access throughout its entire footprint. In March 2015, the FCC issued an order classifying mass-market broadband internet access service as a “telecommunications service,” changing its long-standing treatment of this offering as an “information service,” which the FCC traditionally has subjected to limited regulation.
Internet. Liberty Puerto Rico offers high-speed internet access throughout its entire footprint. In March 2015, the FCC issued an order classifying mass-market broadband internet access service as a “telecommunications service,” changing its long-standing treatment of this offering as an “information service,” which the FCC traditionally has subjected to limited regulation.
With the exception of our B2B SOHO customers, we generally do not count customers of B2B services as customers or RGUs for external reporting purposes. I-7 Certain of our residential and commercial RGUs are counted on an EBU basis, including residential multiple dwelling units and commercial establishments, such as bars, hotels, and hospitals, in Puerto Rico.
With the exception of our B2B SOHO customers, we generally do not count customers of B2B services as customers or RGUs for external reporting purposes. Certain of our residential and commercial RGUs are counted on an EBU basis, including residential multiple dwelling units and commercial establishments, such as bars, hotels, and hospitals, in Puerto Rico.
Customers subscribing to a postpaid plan generally enter into contracts ranging from 12 to 24 months. Customers subscribing to a postpaid plan in Puerto Rico are offered installment agreements if they buy a new handset with acceleration provisions if they cancel the account without penalty. Long-term contracts are often taken with a subsidized mobile handset. Broadband Internet Services .
Customers subscribing to a postpaid plan generally enter into contracts ranging from 12 to 36 months. Customers subscribing to a postpaid plan in Puerto Rico are offered installment agreements if they buy a new handset with acceleration provisions if they cancel the account without penalty. Long-term contracts are often taken with a subsidized mobile handset. Broadband Internet Services .
Our EBUs are generally calculated by dividing the bulk price charged to accounts in an area by the most prevalent price charged to non-bulk residential customers in that market for the comparable tier of service. As such, we may experience variances in our EBU counts solely as a result of changes in rates.
Our EBUs are generally calculated by I-7 dividing the bulk price charged to accounts in an area by the most prevalent price charged to non-bulk residential customers in that market for the comparable tier of service. As such, we may experience variances in our EBU counts solely as a result of changes in rates.
Discounts to our monthly service fees are generally available to a subscriber who selects a bundled service of at least two of the following services: video, internet and fixed-line telephony. We tailor our video services in each country of operation based on local preferences, culture, demographics and regulatory requirements.
Discounts to our monthly service fees are generally available to a subscriber who selects a bundled service of at least two of the following services: video, internet and fixed-line telephony. I-10 We tailor our video services in each country of operation based on local preferences, culture, demographics and regulatory requirements.
Also, C&W Panama is subject to the I-18 ACODECO, guarantor of consumer protection and antitrust, which operates under the direction of the Ministry of Commerce and Industries. Public services in Panama are classified as “Type A services” and “Type B services,” with Mobile Telephony and Personal Communication (PCS) services being classified as Type A services.
Also, C&W Panama is subject to the ACODECO, guarantor of consumer protection and antitrust, which operates under the direction of the Ministry of Commerce and Industries. Public services in Panama are classified as “Type A services” and “Type B services,” with Mobile Telephony and Personal Communication (PCS) services being classified as Type A services.
I-26 Fixed-Line Telephony The market for fixed-line telephony services is mature across our footprint. Changes in market share are driven by the combination of price and quality of services provided and the inclusion of telephony services in bundled offerings. In most of our C&W Caribbean markets, we are the incumbent telecommunications provider with long established customer relationships.
Fixed-Line Telephony The market for fixed-line telephony services is mature across our footprint. Changes in market share are driven by the combination of price and quality of services provided and the inclusion of telephony services in bundled offerings. In most of our C&W Caribbean markets, we are the incumbent telecommunications provider with long established customer relationships.
In addition, Liberty Puerto Rico uses its bundled offers that include high-speed fixed and mobile internet connectivity solutions to drive its video services. • Liberty Costa Rica . We compete primarily with Millicom (Tigo) and Telecable over their cable network, and with the DTH services of Claro.
In addition, Liberty Puerto Rico uses its bundled offers that include high-speed fixed and mobile internet connectivity solutions to drive its video services. I-27 • Liberty Costa Rica . We compete primarily with Millicom (Tigo) and Telecable over their cable network, and with the DTH services of Claro.
However, the Commission of Control and Qualification of Public Spectacles of the Ministry of Justice and Peace may impose sanctions on providers that have run programming containing excessive violence, adult content, or other objectionable content. Pay television operators are directly responsible for violating such prohibitions.
However, the Commission of Control and Qualification of Public I-24 Spectacles of the Ministry of Justice and Peace may impose sanctions on providers that have run programming containing excessive violence, adult content, or other objectionable content. Pay television operators are directly responsible for violating such prohibitions.
Our extensive fiber optic cable networks allow us to typically deliver redundant, end-to-end connectivity backed by a strong service level agreement guarantee. Our networks also allow us to provide our services over dedicated access fiber lines, and local and international private networks which are dedicated to our business customers.
Our extensive fiber optic cable networks typically allow us to deliver redundant, end-to-end connectivity backed by a strong service level agreement guarantee. Our networks also allow us to provide services over dedicated access fiber lines and local and international private networks that are dedicated to our business customers.
The license was granted to retransmit audio and video signals through coaxial cable and fiber optics in the province of Panama, with a validity of 25 years, which was later extended to other provinces in the coverage area for the provision of paid TV service.
The license was I-19 granted to retransmit audio and video signals through coaxial cable and fiber optics in the province of Panama, with a validity of 25 years, which was later extended to other provinces in the coverage area for the provision of paid TV service.
I-10 Subscribers to our mobile services pay varying monthly fees depending on whether the mobile service is bundled with one of our other services or includes mobile data services over their phones, tablets or laptops. Our mobile services are available on a postpaid or prepaid basis.
Subscribers to our mobile services pay varying monthly fees depending on whether the mobile service is bundled with one of our other services or includes mobile data services over their phones, tablets or laptops. Our mobile services are available on a postpaid or prepaid basis.
The TB has primary regulatory jurisdiction in Puerto Rico at the local level and is responsible for awarding franchises to cable operators for the provision of cable service in Puerto Rico and regulating cable I-19 television and telecommunications services. The TB consolidated the majority of Liberty Puerto Rico’s cable franchises in December 2022.
The TB has primary regulatory jurisdiction in Puerto Rico at the local level and is responsible for awarding franchises to cable operators for the provision of cable service in Puerto Rico and regulating cable television and telecommunications services. The TB consolidated the majority of Liberty Puerto Rico’s cable franchises in December 2022.
I-24 Broadband Internet With respect to broadband internet services and online content, our businesses face competition in a rapidly evolving marketplace from incumbent and non-incumbent telecommunications companies, mobile operators and cable-based ISPs , many of which have substantial resources.
Broadband Internet With respect to broadband internet services and online content, our businesses face competition in a rapidly evolving marketplace from incumbent and non-incumbent telecommunications companies, mobile operators and cable-based ISPs , many of which have substantial resources.
In addition, our network as of December 31, 2022, utilized less than 20% of its potential design capacity, and we believe that our ability to take advantage of this large unused carrying capacity, as well as the financial and time investment required to build a similar network, and the potential delays associated with acquiring governmental permissions, makes it unlikely that our network will be replicated in the near term.
In addition, our network as of December 31, 2022, utilized approximately 20% of its potential design capacity, and we believe that our ability to take advantage of this large unused carrying capacity, as well as the financial and time investment required to build a similar network, and the potential delays associated with acquiring governmental permissions, makes it unlikely that our network will be replicated in the near term.
We conduct our business with honesty and integrity in accordance with high ethical and legal standards, and with respect for each other and those with whom we do business. Our Code of Conduct sets out the basic rules, standards and behaviors necessary to achieve those objectives.
Compliance and Ethics. We conduct our business with honesty and integrity in accordance with high ethical and legal standards, and with respect for each other and those with whom we do business. Our Code of Conduct sets out the basic rules, standards and behaviors necessary to achieve those objectives.
These networks are further connected via our subsea and terrestrial fiber optic cable networks that provide connectivity within and outside the region. Our subsea network cables terminating in the United States carry over 10 Tbps , which represent less than 20% of their potential capacity based on current deployed technology, presenting us with significant growth opportunities.
These networks are further connected via our subsea and terrestrial fiber optic cable networks that provide connectivity within and outside the region. Our subsea network cables terminating in the United States carry over 10 Tbps , which represent approximately 20% of their potential capacity based on current deployed technology, presenting us with significant growth opportunities.
Our Business Partner Code of Conduct sets forth the basic rules, standards, and behaviors that we expect of our business partners. As part of our global onboarding process, we require all new employees to complete training on our Code of Conduct. Additionally, we periodically host seminars on anti-corruption, anti-bribery, and other important compliance topics such as cyber security.
Our Business Partner Code of Conduct sets forth the basic rules, standards, and behaviors that we expect of our business partners. As part of our company-wide onboarding process, we require all new employees to complete training on our Code of Conduct. Additionally, we periodically host seminars on anti-corruption, anti-bribery, and other important compliance topics such as cyber security.
Licenses and concessions are in the process of being renewed in Jamaica, the Cayman Islands, the British Virgin Islands, Antigua and the Turks and Caicos Islands. We believe we have complied with all local requirements to have existing licenses renewed and have provided all necessary information to enable local authorities to process applications for renewal in a timely manner.
Licenses and concessions are in the process of being renewed in Jamaica, the Cayman Islands, The Bahamas, Antigua and the Turks and Caicos Islands. We believe we have complied with all local requirements to have existing licenses renewed and have provided all necessary information to enable local authorities to process applications for renewal in a timely manner.
In addition, franchises require payment of a franchise fee as a requirement to the grant of authority, which is passed to Liberty Puerto Rico’s customers. Franchises establish comprehensive facilities and service requirements, as well as specific customer service standards and monetary penalties for non- compliance.
In addition, franchises require payment of a franchise fee as a requirement to the grant of authority, which is passed to Liberty Puerto Rico ’s customers. Franchises establish comprehensive facilities and service requirements, as well as specific customer service standards and monetary penalties for non- compliance.
These facilities are regulated by the FCC , the Department of Homeland Security and other U.S. governmental agencies that impose additional reporting and licensing obligations on C&W Networks & LatAm . C&W Panama C&W Panama is subject to regulatory entities, principally ASEP. ASEP regulates and controls the public services for the supply of drinking water, sanitary sewerage, telecommunications and electricity.
These facilities are regulated by the FCC , the Department of Homeland Security and other U.S. governmental agencies that impose additional reporting and licensing obligations on Liberty Networks . I-18 C&W Panama C&W Panama is subject to regulatory entities, principally ASEP. ASEP regulates and controls the public services for the supply of drinking water, sanitary sewerage, telecommunications and electricity.
Our business products and services include voice, broadband, enterprise-grade connectivity, network security, software defined networking, unified communications and a range of cloud-based IT solutions, such as Infrastructure as a Service, disaster recovery and other service offerings. We also offer a range of data, voice and internet services to carriers, ISPs and mobile operators.
Our business products and services include voice, broadband, enterprise-grade WAN connectivity, managed WiFi, network security, software defined networking, unified communications and a range of cloud-based IT solutions, such as Infrastructure as a Service (IaaS), disaster recovery and other service offerings. We also offer a range of data, voice and internet services to carriers, ISPs and mobile operators.
I-23 The Costa Rican General Telecommunications Law (art.138) establishes a retransmission consent regime between broadcast television concessionaires and pay television operators.
The Costa Rican General Telecommunications Law (art.138) establishes a retransmission consent regime between broadcast television concessionaires and pay television operators.
Quantitative and Qualitative Disclosures About Market Risk may contain forward-looking statements, including statements regarding: our business, product, foreign currency and finance strategies; our property and equipment additions; grants or renewals of licenses; subscriber growth and retention rates; changes in competitive, regulatory and economic factors; our anticipated integration plans, synergies, opportunities and integration costs in Puerto Rico following the AT&T Acquisition, in Costa Rica following the Liberty Telecomunicaciones Acquisition and in Panama following the Claro Panama Acquisition; the UPR Fund; changes in our revenue, costs or growth rates; debt levels; our liquidity and our ability to access the liquidity of our subsidiaries; credit risks; the interest rate risks associated with the transition of LIBOR; internal control over financial reporting and remediation of material weaknesses; foreign currency risks; compliance with debt, financial and other covenants; our future projected sources and uses of cash; and other information and statements that are not historical fact.
Quantitative and Qualitative Disclosures About Market Risk may contain forward-looking statements, including statements regarding: our business, product, foreign currency and finance strategies; our property and equipment additions; grants or renewals of licenses; subscriber growth and retention rates; changes in competitive, regulatory and economic factors; the timing and impact of proposed transactions, including the Puerto Rico and USVI Spectrum Acquisition and the Tower Transactions; our anticipated integration plans, synergies, opportunities and integration costs in Puerto Rico following the AT&T Acquisition, in Costa Rica following the Liberty Telecomunicaciones Acquisition and in Panama following the Claro Panama Acquisition; the UPR Fund; changes in our revenue, costs or growth rates; debt levels; our liquidity and our ability to access the liquidity of our subsidiaries; credit risks; interest rate risks; internal control over financial reporting and remediation of material weaknesses; foreign currency risks; compliance with debt, financial and other covenants; our future projected sources and uses of cash; and other information and statements that are not historical fact.
OTT video providers (such as HBO Go/Max, Amazon Prime Video, Disney+ and Netflix in most of our markets, and Hulu, DirecTV Now, Sling, and Sportsmax in selected markets) offer rich VoD catalogues and/or linear channels . In some cases, these AVoD services are provided free-of-charge (such as YouTube and Pluto TV).
OTT video providers (such as Max, Amazon Prime Video, Disney+, Paramount+ and Netflix in most of our markets, and Hulu, DirecTV Now, Sling, and Sportsmax in selected markets) offer rich VoD catalogues and/or linear channels . In some cases, these AVoD services are I-26 provided free-of-charge (such as YouTube and Pluto TV).
With the opening of the market, in 2008, concession contracts for the PCS Service were granted to Digicel (Panamá), S.A. and Claro Panama. Currently, C&W Panama is undergoing a mobile market consolidation process with Claro Panama, according to Law 36 of June 5, 2018 and subsequently, Digicel declared their intention to return their concession to the Panama.
With the opening of the market, in 2008, concession contracts for the PCS Service were granted to Digicel (Panamá), S.A. and Claro Panama. Currently, C&W Panama completed a mobile market consolidation process with Claro Panama, according to Law 36 of June 5, 2018 and subsequently, Digicel declared their intention to return their concession to the Panamanian government.
We include a mix of base salary, short and long-term incentives (based on eligibility), as well as a wide range of programs that support our employees’ overall well-being including: retirement savings plans, healthcare and insurance benefits, paid parental leave, paid time off, and employee assistance programs. These programs vary by employee level and geography. Compliance and Ethics.
We include a mix of base salary, short and long-term incentives (based on eligibility), as well as a wide range of programs that support our employees’ overall well-being including: retirement savings plans, healthcare and insurance benefits, paid parental leave, paid time off, an employee stock purchase plan and employee assistance programs. These programs vary by employee level and geography.
(a less than wholly-owned entity) and its subsidiaries, which include Liberty Servicios and, as of August 9, 2021 and as further described in note 4 to our consolidated financial statements, Liberty Telecomunicaciones; and (iv) prior to the closing of the formation of the Chile JV, VTR.
(a less than wholly-owned entity) and its subsidiaries, which include Liberty Servicios and, as of August 9, 2021 and as further described in note 5 to our consolidated financial statements, Liberty Telecomunicaciones; and (iv) prior to the closing of the formation of the Chile JV in October 2022, VTR, as further described below.
Our business services fall into five broad categories: • VoIP and circuit-switch telephony; • Data services for internet access, virtual private networks, high capacity point-to-point, point-to-multi-point and multi-point-to-multi-point services, managed networking services such as wide area, SDWAN and WiFi networks; • Wireless services for mobile voice and data; and • Value added Managed Services, including: ◦ Private and Public Cloud Infrastructure Services and integration, including Disaster Recovery Backup Services; ◦ Cloud and premise based Private Branch eXchange solutions, conferencing options and Hosted Contact Center solutions; ◦ Cyber Security Services, including structured solutions, rapid response, and other professional services; ◦ Emerging technologies in Software Defined Networking, Internet of Things, Digitalization and Digital Currencies; and ◦ Specialized services such as Tele-Health, Digital Signage, and Retail Analytics.
Our business services fall into five broad categories: • VoIP and circuit-switch telephony; • Data services for internet access, virtual private networks, high capacity point-to-point, point-to-multi-point and multi-point-to-multi-point services, managed networking services including MPLS, SDWAN and IP transit; • Wireless services for mobile voice and data; and • Value added Managed Services, including: ◦ Private and Public Cloud Infrastructure Services and integration, including Disaster Recovery Backup Services; ◦ Cloud and premise based Private Branch exchange solutions, conferencing options and Hosted Contact Center solutions; ◦ Cyber Security Services, including structured solutions, rapid response, and other professional services; ◦ Managed WiFi; ◦ Software Defined Networking, Internet of Things, Digitalization and Digital Currencies; and ◦ Specialized services such as Telehealth, Digital Signage, and Retail Analytics.
These gateway products can be self-installed and have an automatic WiFi optimization function, which selects the best possible wireless frequency. During 2022, our Network Extension programs (as defined and described below) upgraded or passed approximately 484,400 homes across Liberty Latin America.
These gateway products can be self-installed and have an automatic WiFi optimization function, which selects the best possible wireless frequency. During 2023, our Network Extension programs (as defined and described below) upgraded or passed approximately 349,200 homes across Liberty Latin America.
C&W Panama is authorized to install, maintain, manage, operate and commercially exploit the Mobile Telephone Service, in the assigned radio spectrum segments, which currently C&W Panama has 125 MHz, under the prepaid and post-paid contract modalities, including supplementary services and other Mobile Telephony services, throughout Panama, which is valid until 2037.
C&W Panama is authorized to install, maintain, manage, operate and commercially exploit the mobile telephone service, in the assigned radio spectrum segments, which currently C&W Panama has 125 MHz, for its prepaid and post-paid mobile customers, including supplementary services and other Mobile Telephony services, throughout Panama, which is valid until 2037.
In 2022, we maintained our commitment to the CEO Action for Diversity & Inclusion pledge focused on: creating an environment for open dialogue, conducting implicit bias training, sharing best practices and lessons learned, and developing dedicated Diversity & Inclusion plans in consultation with our Board of Directors. We know that our success depends on our people.
In 2023, we maintained our commitment to the CEO Action for Diversity & Inclusion pledge focused on: creating an environment for open dialogue, sharing best practices and lessons learned, and developing dedicated Diversity & Inclusion plans in consultation with our Board of Directors. We know that our success depends on our people.
Local governments, such as in Puerto Rico and the U.S. Virgin Islands, typically regulate the placement of wireless towers and similar facilities via zoning laws. At present, neither the FCC nor state or local governments regulate specific service offerings or rate plans.
Local governments, such as in Puerto Rico and USVI, typically regulate the placement of wireless towers and similar facilities via zoning laws. At present, neither the FCC nor state or local governments regulate specific service offerings or rate plans.
Liberty Puerto Rico’s predecessor wireless provider in Puerto Rico (AT&T) submitted the required documentation and in June 2020, the FCC authorized that entity to receive approximately $34 million in annual funding over three years or a total amount of $102 million in funding to expand, improve and harden the mobile networks in Puerto Rico and the U.S. Virgin Islands.
Liberty Puerto Rico’s predecessor wireless provider in Puerto Rico (AT&T) submitted the required documentation and in June 2020, the FCC authorized that entity to receive approximately $34 million in annual funding over I-20 three years or a total amount of $102 million in funding to expand, improve and harden the mobile networks in Puerto Rico and USVI.
This concession has a 15-year renewable term, expiring on May 12, 2026, that may be extended for an additional 10 year term. The second one, granted in 2018, MICITT awarded Liberty Telecomunicaciones 20 MHz in the 1800 MHz band and 20 MHz in the 1900/2100 MHz band.
The second one, granted in 2018, MICITT awarded Liberty Telecomunicaciones 20 MHz in the 1800 MHz band and 20 MHz in the 1900/2100 MHz band. This concession has a 15-year renewable term, expiring on April 23, 2033, that may be extended for an additional 10 year term. Video.
The internet speeds we offer are one of our differentiators, as customers spend more time streaming video and other bandwidth-heavy services on multiple devices. As a result, we are continuing to invest in additional bandwidth and technologies to increase internet speeds throughout our Latin America and Caribbean footprint.
The internet speeds we offer are one of the key focus areas for our value propositions, as customers spend more time streaming video and other bandwidth-heavy services on multiple devices. As a result, we are continuing to invest in additional bandwidth and technologies to increase internet speeds throughout our Latin America and Caribbean footprint.
We compete in the provision of B2B services with residential telecommunications operators as noted above. We also compete with regional and international service providers, particularly when addressing larger customers. I-27 Human Capital Resources Our Team . As of December 31, 2022, we employed approximately 11,000 full-time employees across our five reportable segments.
We compete in the provision of B2B services with residential telecommunications operators as noted above. We also compete with regional and international service providers, particularly when addressing larger customers. I-28 Human Capital Resources Our Team . As of December 31, 2023, we employed approximately 10,600 full-time employees across our five reportable segments.
We also operate an extensive subsea and terrestrial fiber optic cable network that connects approximately 40 markets in the region, providing connectivity solutions both within and outside our operating footprint. We are the largest fixed-line provider of high-speed broadband and video services across a number of our markets, including Puerto Rico, Jamaica and Trinidad and Tobago.
We also operate an extensive subsea and terrestrial fiber optic cable network that connects approximately 40 markets in the region, providing connectivity solutions both within and outside our operating footprint. We are the largest fixed-line provider of high-speed broadband and video services, in terms of market share, across a number of our markets.
C&W Panama is the only operator that provides Public Telephone Service in Panama. Since 2021, efforts have been made with the regulatory authority to obtain authorization for disconnection and/or relocation of public phones, and in 2022, C&W Panama presented a formal request to remove 4,605 out of 8,445 public phones.
C&W Panama is the only operator that provides Public Telephone Service in Panama. Since 2021, efforts have been made with the regulatory authority to obtain authorization for disconnection and/or relocation of public phones, and in 2022, C&W Panama obtained approval to remove 4,005 out of 8,445 public phones.
(5) Percentage of total customers that subscribe to two services (double-play customers) or three services (triple-play customers) offered by our operations (video, broadband internet and fixed-line telephony), as applicable.
(2) Percentage of two-way homes passed that subscribe to broadband internet or fixed-line telephony services, as applicable. (3) Percentage of total customers that subscribe to two services (double-play customers) or three services (triple-play customers) offered by our operations (video, broadband internet and fixed-line telephony), as applicable.
The MMG Program is a competitive grant program that provides funding to telecommunications companies and other eligible entities for the construction, improvement or acquisition of middle mile infrastructure.
I-22 The Infrastructure Act also established the Middle Mile Broadband Infrastructure Grant Program (MMG). The MMG Program is a competitive grant program that provides funding to telecommunications companies and other eligible entities for the construction, improvement or acquisition of middle mile infrastructure.
In Puerto Rico and the USVI, spectrum licenses are typically held for perpetuity with the exception of CBRS spectrum which has a priority term of 10 years. We also hold mobile spectrum licenses in Costa Rica with a 15-year term that may be extended for an additional 10 year term.
In Puerto Rico and the USVI, spectrum licenses are typically held for perpetuity with the exception of CBRS spectrum which has a priority term of 10 years. We also hold mobile spectrum licenses in Costa Rica with a 15-year term, several of these licences will expire in 2026, and these can be extended for an additional 10 year term.
Internet. The Regulation of Provision and Quality of Services of Sutel establishes minimum quality thresholds, such as minimum speeds, oversubscription, and delay. Fixed-Line Telephony Services .
Internet. The Regulation of Provision and Quality of Services of Sutel establishes minimum quality thresholds, such as minimum speeds, oversubscription, delay, and installation, reconnection and repair of breakdowns deadlines. Fixed-Line Telephony Services .
Our B2B offerings by Liberty Puerto Rico and Liberty Costa Rica are less developed and provide an opportunity for future growth. C&W Networks & LatAm. We offer cloud-based integrated communication services, connectivity and wholesale solutions to carriers and businesses throughout the Caribbean and in parts of Latin America via our subsea and terrestrial fiber optic cable networks.
Our B2B offerings by Liberty Puerto Rico and Liberty Costa Rica are less developed and provide an opportunity for future growth. Liberty Networks. We offer integrated communication and cloud services, connectivity and wholesale solutions to hyper scalers, carriers and businesses throughout the Caribbean, Latin America and the U.S. via our subsea and terrestrial fiber optic cable networks.
In 2022, through our company-wide initiative, Mission Week , over 1,700 employees across 20 countries came together to contribute more than 7,000 volunteer hours in support of communities across Latin America and the Caribbean through a wide range of volunteer activities. Compensation, Benefits and Well-being.
In 2023, through our company-wide initiative, Mission Week , over 1,300 employees across 22 countries came together to contribute more than 7,800 volunteer hours in support of communities across Latin America and the Caribbean through a wide range of volunteer activities. I-29 Compensation, Benefits and Well-being.
We aim to offer the most relevant mix of content to our subscribers, combining general entertainment, sports, movies, documentaries, lifestyle, news, adult, children and foreign channels, as well as local, regional and international broadcast networks.
We aim to offer the most relevant mix of content to our subscribers, combining general entertainment, sports, movies, documentaries, lifestyle, news, adult, children and foreign channels, as well as local, regional and international broadcast networks. We manage multiple channels in the Caribbean Region, notably the prominent Caribbean sports network, Flow Sports.
The law of market consolidation issued by the Panamanian government aims to maintain three mobile operators and therefore, the Panamanian state recently published the Public Bid for the acquisition of this concession and purchase of some assets of Digicel Panama. Spectrum.
The law of market consolidation issued by the Panamanian government aims to maintain three mobile operators and therefore, the Panamanian state recently published the public bid for the acquisition of this concession and purchase of some assets of Digicel Panama, and it has authorized ASEP to negotiate with General International Telecom Panama for this purchase. Spectrum.
In order to compete, Liberty Puerto Rico focuses on offering video packages with attractive programming, including HD and Spanish language channels, plus a specialty video package of Spanish-only channels that has gained popularity.
DirecTV is also a significant competitor offering similar programming in Puerto Rico compared to Dish Network . In order to compete, Liberty Puerto Rico focuses on offering video packages with attractive programming, including HD and Spanish language channels, plus a specialty video package of Spanish-only channels that has gained popularity.
Puerto Rico, through our reportable segment Liberty Puerto Rico; iii. Costa Rica, through our reportable segment Liberty Costa Rica; iv.
Puerto Rico and USVI, through our reportable segment Liberty Puerto Rico; and iii. Costa Rica, through our reportable segment Liberty Costa Rica.
In 2022, we measured our employee net promoter score (eNPS) at +32 as part of our annual employee survey, which we believe indicates we have a passionate, engaged, and dedicated workforce. Our Chief People Officer, who reports to the CEO and is part of the Executive Team, leads our People and Culture initiatives.
In 2023, we measured our eNPS at +20 as part of our annual employee survey, which we believe is an indicator that we have a passionate, engaged, and dedicated workforce. Our Chief People Officer, who reports to the CEO and is part of the Executive Team, leads our People and Culture initiatives.
Therefore, we have the right to interconnect with the ILEC, PRTC . We have negotiated an interconnection agreement with PRTC , and the physical interconnection between both companies has been activated.
Therefore, we have the right to interconnect with the ILEC, PRTC . We have negotiated an interconnection agreement with PRTC , allowing for the physical interconnection between both companies.
The funds are paid in equal installments of $3 million and since the date of the AT&T Acquisition, we have received approximately $74 million in funding, including approximately $71 million and $3 million received by our mobile operations in Puerto Rico and the U.S. Virgin Islands, respectively.
The funds are paid in equal installments of $3 million and since the date of the AT&T Acquisition, we have received approximately $98 million in funding, including approximately $94 million and $4 million received by our mobile operations in Puerto Rico and USVI, respectively.
Virgin Islands offer mobile services in Puerto Rico and the U.S. Virgin Islands. The FCC regulates virtually all aspects of United States wireless communications systems, including spectrum licensing, tower and antenna construction, modification and operation, the ownership and sale of wireless systems and licenses, as well as the acquisition, leasing and use of wireless spectrum.
The FCC regulates virtually all aspects of United States wireless communications systems, including spectrum licensing, tower and antenna construction, modification and operation, the ownership and sale of wireless systems and licenses, as well as the acquisition, leasing and use of wireless spectrum.
C&W Panama is a Type B concessionaire, with or without use of radio spectrum, subject to compliance with requirements regarding the fulfillment of quality goals for the provision of these services, such as the attention to recommendations issued by the International Telecommunications Union. Mobile Services .
C&W Panama is a Type B concessionaire, with or without use of radio spectrum, subject to compliance with requirements regarding the fulfillment of quality goals for the provision of these services, such as the attention to recommendations issued by the International Telecommunications Union. During 2023, C&W Panama filed considerations to a public consultation, which proposes to eliminate National Long Distance.
Chile, through our reportable segment VTR through September 30, 2022; and B. through our reportable segment C&W Networks & LatAm, (i) B2B services in certain other countries in Latin America and the Caribbean, and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect approximately 40 markets in that region.
B. through our reportable segment Liberty Networks, (i) enterprise services in certain other countries in Latin America and the Caribbean, and (ii) wholesale services over its subsea and terrestrial fiber optic cable networks that connect approximately 40 markets in that region.
Similarly, we are investing to build a new mobile core in Puerto Rico, which when built, will be virtualized, and redundant. These redundant network elements will be connected by our owned and operated diverse submarine cable routes with automatic alternate routing.
We continually look for opportunities to expand our 5G footprint to other countries where a positive business case exists. Similarly, we are investing to build a new mobile core in Puerto Rico, which when built, will be virtualized, and redundant. These redundant network elements will be connected by our owned and operated diverse submarine cable routes with automatic alternate routing.
Virgin Islands in an all-cash transaction based upon an enterprise value of $1.95 billion. For information regarding our material financing transactions, see note 9 to our consolidated financial statements. Forward-looking Statements Certain statements in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
For information regarding our material financing transactions, see note 10 to our consolidated financial statements. Forward-looking Statements Certain statements in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

… 102 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

85 edited+8 added−9 removed271 unchanged
Biggest changeIf, among other factors, (i) our equity values were to decline significantly or (ii) the adverse impacts stemming from COVID-19, competition, economic, regulatory or other factors, including macro-economic and demographic trends, were to cause our results of operations or cash flows to be worse than anticipated, we could conclude in future periods that impairment charges are required in order to reduce the carrying values of the goodwill and, to a lesser extent, other long-lived assets of our C&W Caribbean segment or our C&W Panama segment.
Biggest changeIf, among other factors, (i) our equity values were to decline significantly, (ii) we experience additional adverse impacts associated with macroeconomic factors, including increases in our estimated weighted average cost of capital, or (iii) the adverse impacts stemming from competition, economic, regulatory or other factors were to cause our results of operations or cash flows to be worse than currently anticipated, we could conclude in future periods that additional impairment charges of certain reporting units are required in order to reduce the carrying values of goodwill.
In that event, if related to borrowings under a borrowing group’s (i.e., C&W , Liberty Costa Rica, and Liberty Puerto Rico) debt agreements or other instruments, other debt agreements or instruments that contain cross-default or cross-acceleration provisions with respect to other indebtedness of that particular borrowing group may become payable on demand and the affected borrowing group may not have sufficient funds to repay all I-42 of its debts; and if related to borrowings in an amount above a certain threshold of a “significant subsidiary” (as defined in Regulation S-X under the Securities Act) of Liberty Latin America Ltd., the Convertible Notes may become payable on demand under the cross-default provision in the indenture governing the Convertible Notes.
In that event, if related to borrowings under a borrowing group’s (i.e., C&W , Liberty Costa Rica, and Liberty Puerto Rico) debt agreements or other instruments, other debt agreements or instruments that contain cross-default or cross-acceleration provisions with respect to other indebtedness of that particular borrowing group may become payable on demand and the affected borrowing group may not have sufficient funds to repay all of its debts; and if related to borrowings in an amount above a certain threshold of a “significant subsidiary” (as defined in Regulation S-X under the Securities Act) of Liberty Latin America Ltd., the Convertible Notes may become payable on demand under the cross-default provision in the indenture governing the Convertible Notes.
Therefore, we are subject to the following inherent risks: • fluctuations in foreign currency exchange rates; • difficulties in staffing and managing operations consistently through our several operating areas; • export and import restrictions, custom duties, tariffs and other trade barriers; • burdensome tax, customs, duties or regulatory assessments based on new or differing interpretations of law or regulations, including increases in taxes and governmental fees; • economic and political instability, social unrest, and public health crises, such as the occurrence of a contagious disease like the novel coronavirus; • changes in foreign and domestic laws and policies that govern operations of foreign-based companies; • interruptions to essential energy inputs; • direct and indirect price controls; • cancellation of contract rights and licenses; • delays or denial of governmental approvals; • a lack of reliable security technologies; • privacy concerns; and I-35 • uncertainty regarding intellectual property rights and other legal issues.
Therefore, we are subject to the following inherent risks: • fluctuations in foreign currency exchange rates; • difficulties in staffing and managing operations consistently through our several operating areas; • export and import restrictions, custom duties, tariffs and other trade barriers; • burdensome tax, customs, duties or regulatory assessments based on new or differing interpretations of law or regulations, including increases in taxes and governmental fees; • economic and political instability, social unrest, and public health crises, such as the occurrence of a contagious disease like the novel coronavirus; • changes in foreign and domestic laws and policies that govern operations of foreign-based companies; • interruptions to essential energy inputs; I-34 • direct and indirect price controls; • cancellation of contract rights and licenses; • delays or denial of governmental approvals; • a lack of reliable security technologies; • privacy concerns; and • uncertainty regarding intellectual property rights and other legal issues.
Additionally, we may face higher losses of property, plant and equipment, customers and revenue, disruptions in our operations and supply chain, and incur additional costs, which may not be covered by insurance, as the result of damage caused in our markets by severe weather phenomena or natural disasters, such as floods, fires and earthquakes.
Additionally, we may face higher losses of property, plant and equipment, customers and revenue, disruptions in our operations and supply chain, and incur additional costs, which may not be covered by insurance, as the result of damage caused in our markets by severe weather phenomena or natural disasters, such as hurricanes, floods, fires and earthquakes.
We may not be successful in renewing the necessary regulatory licenses, concessions or other operating agreements needed to operate our businesses upon expiration, and such licenses may be subject to termination, revocation or material alteration in the event of a breach or to promote the public interest or as a result of triggering a change of control clause.
We may not be successful in renewing the necessary regulatory or spectrum licenses, concessions or other operating agreements needed to operate our businesses upon expiration, and such licenses may be subject to termination, revocation or material alteration in the event of a breach or to promote the public interest or as a result of triggering a change of control clause.
In the event of any potential conflict that qualifies as a “related party transaction” (as defined in Item 404 of Regulation S-K) involving Liberty Global and/or any of its subsidiaries or other affiliates, the audit committee or another independent body of Liberty Latin America would be required to review and approve the transaction.
In the event of any potential conflict that qualifies as a “related party transaction” (as defined in Item 404 of Regulation S-K) involving Liberty Global and/or any of its subsidiaries or other affiliates, our Audit Committee or another independent body of Liberty Latin America would be required to review and approve the transaction.
As a result of restrictions contained in these debt instruments, the companies party thereto, and their subsidiaries, could be unable to obtain additional capital in the future to: • fund property and equipment additions or acquisitions that could improve our value; • meet their loan and capital commitments to their business affiliates; • invest in companies in which they would otherwise invest; • fund any operating losses or future development of their business affiliates; • obtain lower borrowing costs that are available from secured lenders or engage in advantageous transactions that monetize their assets; or • conduct other necessary or prudent corporate activities.
As a result of restrictions contained in these debt instruments, the companies party thereto, and their subsidiaries, could be unable to obtain additional capital in the future to: • fund property and equipment additions or acquisitions that could improve our value; • meet their loan and capital commitments to their business affiliates; • invest in companies in which they would otherwise invest; • fund any operating losses or future development of their business affiliates; • obtain lower borrowing costs that are available from secured lenders or engage in advantageous transactions that monetize their assets; or I-42 • conduct other necessary or prudent corporate activities.
If the potential conflict or transaction involved an executive officer of Liberty Latin America , the audit committee of our company would be the independent committee charged by our corporate governance guidelines with this duty, and if the potential conflict or transaction involved a director of Liberty Latin America , a committee of the disinterested independent directors of Liberty Latin America would be the independent committee charged by our corporate governance guidelines with this duty.
If the potential conflict or transaction involved an executive officer of Liberty Latin America , our Audit Committee would be the independent committee charged by our corporate governance guidelines with this duty, and if the potential conflict or transaction involved a director of Liberty Latin America , a committee of the disinterested independent directors of Liberty Latin America would be the independent committee charged by our corporate governance guidelines with this duty.
We will likely require additional spectrum licenses for LTE networks, and there may be competition for their acquisition. In addition, we may need other types of licenses for the new products and services that we contemplate or will consider offering.
We will likely require additional spectrum licenses for LTE and 5G networks, and there may be competition for their acquisition. In addition, we may need other types of licenses for the new products and services that we contemplate or will consider offering.
We also are exposed to unfavorable and potentially volatile fluctuations of the U.S. dollar (our reporting currency) against the currencies of our operating subsidiaries when their respective financial statements are translated into U.S. dollars for I-36 inclusion in our consolidated financial statements. Cumulative translation adjustments are recorded in accumulated other comprehensive earnings or loss as a separate component of equity.
We also are exposed to unfavorable and potentially volatile fluctuations of the U.S. dollar (our reporting currency) against the currencies of our operating subsidiaries when their respective financial statements are translated into U.S. dollars for inclusion in our consolidated financial statements. Cumulative translation adjustments are recorded in accumulated other comprehensive earnings or loss as a separate component of equity.
In addition, our borrowing costs can be affected by short- and long-term debt ratings assigned by I-43 independent rating agencies, which are based, in significant part, on our performance as measured by customary credit metrics. A decrease in these ratings would likely increase our cost of borrowing and/or make it more difficult for us to obtain financing.
In addition, our borrowing costs can be affected by short- and long-term debt ratings assigned by independent rating agencies, which are based, in significant part, on our performance as measured by customary credit metrics. A decrease in these ratings would likely increase our cost of borrowing and/or make it more difficult for us to obtain financing.
The material weaknesses will not be considered remediated until the applicable new or enhanced controls operate for a sufficient period and management has concluded, through testing, that these controls are operating effectively. As remediation has not yet been completed, these material weaknesses continued to exist with respect to our internal control over financial reporting as of December 31, 2022.
The material weaknesses will not be considered remediated until the applicable new or enhanced controls operate for a sufficient period and management has concluded, through testing, that these controls are operating effectively. As remediation has not yet been completed, these material weaknesses continued to exist with respect to our internal control over financial reporting as of December 31, 2023.
In addition, past financial performance may not be a reliable indicator of future performance and historical trends should not be used to anticipate results or trends in future periods. If any of the events described below, individually or in combination, were to occur, our businesses, prospects, financial condition, results of operations and/or cash flows could be materially adversely affected.
In addition, past financial performance may not be a reliable indicator of future performance and historical trends should not be used to anticipate results or trends in future periods. I-30 If any of the events described below, individually or in combination, were to occur, our businesses, prospects, financial condition, results of operations and/or cash flows could be materially adversely affected.
In particular, our systems and equipment are in regions prone to hurricanes, earthquakes and other natural disasters, and they have been impacted by hurricanes in the recent past. I-32 Moreover, despite security measures, our servers, systems and equipment are potentially vulnerable to physical or electronic break-ins, computer viruses and similar disruptive actions as further discussed below.
In particular, our systems and equipment are in regions prone to hurricanes, earthquakes and other natural disasters, and they have been impacted by hurricanes and earthquakes in the recent past. Moreover, despite security measures, our servers, systems and equipment are potentially vulnerable to physical or electronic break-ins, computer viruses and similar disruptive actions as further discussed below.
The provision of electronic communications networks and services requires our licensing from, or registration with, the appropriate regulatory authorities. It is possible that countries in which we operate may adopt laws and regulations regarding electronic commerce, which could dampen the growth of the internet services being offered and developed by these businesses.
The provision of electronic communications I-36 networks and services requires our licensing from, or registration with, the appropriate regulatory authorities. It is possible that countries in which we operate may adopt laws and regulations regarding electronic commerce, which could dampen the growth of the internet services being offered and developed by these businesses.
The impact of any one or all of the foregoing factors may adversely affect our financial condition and results of operations. I-46 Risks Relating to our Corporate History and Structure We are a holding company, and we could be unable in the future to obtain cash in amounts sufficient to service our financial obligations or meet our other commitments.
The impact of any one or all of the foregoing factors may adversely affect our financial condition and results of operations. Risks Relating to our Corporate History and Structure We are a holding company, and we could be unable in the future to obtain cash in amounts sufficient to service our financial obligations or meet our other commitments.
Events outside of our control, such as natural disasters, technological failures, vandalism, war, terrorism, inadvertent cuts or extraordinary social or political events, could impact the continued operation of our network. We cannot assure you that our systems will continue to function as expected in a cost-effective manner.
Events outside of our control, such as natural disasters, technological failures, cybersecurity incidents, vandalism, war, terrorism, inadvertent cuts or extraordinary social or political events, could impact the continued operation of our network. We cannot assure you that our systems will continue to function as expected in a cost-effective manner.
Public health crises, such as the recent outbreak of the novel coronavirus, in countries where we operate or where our contractors’ or vendors’ facilities are located could also have an effect on our financial condition or operations through impacts on our customers’ ability to use our services, on the availability of our workforce or through adverse impacts to our supply chain.
Public health crises, such as the coronavirus outbreak, in countries where we operate or where our contractors’ or vendors’ facilities are located could also have an effect on our financial condition or operations through impacts on our customers’ ability to use our services, on the availability of our workforce or through adverse impacts to our supply chain.
Our residential customers may similarly elect to use fewer higher margin services, switch from fixed to mobile services resulting in the so-called traffic substitution effect, reduce their consumption of our video services or similarly choose to obtain products and services under lower cost programs offered by our competitors.
Our residential customers may similarly elect to use fewer higher margin services, switch from fixed to mobile services resulting in I-43 the so-called traffic substitution effect, reduce their consumption of our video services or similarly choose to obtain products and services under lower cost programs offered by our competitors.
See “ Cyberattacks or other network disruptions could have an adverse effect on our business.” Our disaster recovery, security and service continuity protection measures include back-up power systems, resilient ring network systems, procuring capacity in competing networks to further strengthen our reliability profile and network monitoring.
See “Cyberattacks or other network disruptions could have an adverse effect on our business.” Our disaster recovery, security and service continuity protection measures include back-up power systems, resilient ring network systems, procuring capacity in competing networks to further strengthen our reliability profile and network monitoring.
Despite the precautions we have taken, unanticipated problems affecting our systems could cause failures in our information technology systems or disruption in the transmission of signals over our networks or similar problems. Any disruptive situation that causes loss, misappropriation, misuse or leakage of data could damage our reputation and the credibility of our operations.
I-45 Despite the precautions we have taken, unanticipated problems affecting our systems could cause failures in our information technology systems or disruption in the transmission of signals over our networks or similar problems. Any disruptive situation that causes loss, misappropriation, misuse or leakage of data could damage our reputation and the credibility of our operations.
Certain Searchlight parties may sell Class C common shares subject to a Registration Rights Agreement in the public market, which may cause the market price of our common shares to decrease, and therefore make it more difficult to raise equity financing or issue equity as consideration in an acquisition.
I-50 Certain Searchlight parties may sell Class C common shares subject to a Registration Rights Agreement in the public market, which may cause the market price of our common shares to decrease, and therefore make it more difficult to raise equity financing or issue equity as consideration in an acquisition.
For example, certain of our companies provide (and may in the future provide), directly or indirectly, certain services to governmental entities in Cuba ( e.g. , C&W sells IP and international transport telecommunication services to ETECSA , the Cuba state-owned telecommunications provider and to three international telecommunications providers that in turn sell telecom services to ETECSA ).
For example, certain of our companies provide (and may in the future provide), directly or indirectly, certain services to governmental entities in Cuba ( e.g. , C&W sells IP and international transport telecommunication services to ETECSA , the Cuba state-owned telecommunications provider and to other international telecommunications providers that in turn sell telecom services to ETECSA ).
Many of our operations depend on governmental approval and regulatory decisions, and we provide services to governmental organizations in certain markets (and in certain cases, like Venezuela, governmental organizations are our biggest customers). Moreover, in several of C&W ’s key markets, including Panama and the Bahamas, governments are C&W ’s partners and co-owners.
Many of our operations depend on governmental approval and regulatory decisions, and we provide services to governmental organizations in certain markets (and in certain I-37 cases, like Venezuela, governmental organizations are our biggest customers). Moreover, in several of C&W ’s key markets, including Panama and The Bahamas, governments are C&W ’s partners and co-owners.
A lack of market acceptance of new products and services that we may offer, or the development of significant competitive products or services by others, could have a material adverse impact on our results of operations and cash flows. I-30 Our significant property and equipment additions may not generate a positive return.
A lack of market acceptance of new products and services that we may offer, or the development of significant competitive products or services by others, could have a material adverse impact on our results of operations and cash flows. Our significant property and equipment additions may not generate a positive return.
In this regard, we have entered into foreign currency forward contracts to hedge certain of these risks. Certain non-functional currency risks related to our programming and other direct costs of services and other operating costs and expenses and property and equipment additions were not hedged as of December 31, 2022.
In this regard, we have entered into foreign currency forward contracts to hedge certain of these risks. Certain non-functional currency risks related to our programming and other direct costs of services, other operating costs and expenses and property and equipment additions were not hedged as of December 31, 2023.
While these licenses, and other licenses that we possess, enable us to offer mobile data services today, as technology develops and customer needs change, it may be I-39 necessary to acquire new spectrum or other licenses in the future to provide us with additional capacity and/or offer new technologies or services.
While these licenses, and other licenses that we possess, enable us to offer mobile data services today, as technology develops and customer needs change, it may be necessary to acquire new spectrum or other licenses in the future to provide us with additional capacity and/or offer new technologies or services.
Our bye-laws prescribe that all classes of common shares vote together as one class, meaning that those holding Class C common shares will have little to no ability to influence the outcome of a shareholder vote as they will be consistently outvoted by holders of our Class A and Class B common shares.
Our bye-laws prescribe that all classes of common I-48 shares vote together as one class, meaning that those holding Class C common shares will have little to no ability to influence the outcome of a shareholder vote as they will be consistently outvoted by holders of our Class A and Class B common shares.
Due to the evolving techniques used in cyberattacks to disrupt or gain unauthorized access to technology networks, we may not be able to anticipate or prevent such disruption or unauthorized access. I-33 The costs imposed on us as a result of a cyberattack or network disruption could be significant.
Due to the evolving techniques used in cyberattacks to disrupt or gain unauthorized access to technology networks, we may not be able to anticipate or prevent such disruption or unauthorized access. The costs imposed on us as a result of a cyberattack or network disruption could be significant.
Changes in exchange rates with respect to amounts recorded in our consolidated balance sheet related to these items will result in unrealized (based upon period-end exchange rates) or realized foreign currency transaction gains and losses upon settlement of the transactions.
Changes in exchange rates with respect to amounts recorded in our consolidated balance sheet related to these items will result in (i) unrealized foreign currency transaction gains and losses based upon period-end exchange rates or (ii) realized foreign currency transaction gains and losses upon settlement of the transactions.
As of December 31, 2022, we did not maintain effective internal control over financial reporting attributable to certain identified material weaknesses. We describe these material weaknesses in Item 9A. Controls and Procedures in this Annual Report on Form 10-K.
As of December 31, 2023, we did not maintain effective internal control over financial reporting attributable to certain identified material weaknesses. We describe these material weaknesses in Item 9A. Controls and Procedures in this Annual Report on Form 10-K.
I-34 Data privacy regulations are expanding and compliance with, and any violations of, these regulations may cause us to incur significant expenses. Privacy legislation, enforcement and policy activity in this area are expanding rapidly in many jurisdictions and creating a complex regulatory compliance environment.
Data privacy regulations are expanding and compliance with, and any violations of, these regulations may cause us to incur significant expenses. Privacy legislation, enforcement and policy activity in this area are expanding rapidly in many jurisdictions and creating a complex regulatory compliance environment.
Some of these licenses may also include clauses that allow the grantor to terminate or revoke or alter them in the event of a default or other failure by us to comply with applicable conditions of the license or to promote the public interest.
I-39 Some of these licenses may also include clauses that allow the grantor to terminate or revoke or alter them in the event of a default or other failure by us to comply with applicable conditions of the license or to promote the public interest.
Bermuda law may, in certain circumstances, afford less protection to our shareholders than the laws in effect in other jurisdictions. We are incorporated and organized under the laws of Bermuda. As a result, our corporate affairs are governed by the Bermuda Companies Act.
I-49 Bermuda law may, in certain circumstances, afford less protection to our shareholders than the laws in effect in other jurisdictions. We are incorporated and organized under the laws of Bermuda. As a result, our corporate affairs are governed by the Bermuda Companies Act.
In addition, adverse economic conditions may lead to a rise in the number of our customers who are not able to pay for our services. I-44 Adverse economic conditions can also have an adverse impact on tourism, which in turn can adversely impact our business.
In addition, adverse economic conditions may lead to a rise in the number of our customers who are not able to pay for our services. Adverse economic conditions can also have an adverse impact on tourism, which in turn can adversely impact our business.
Moreover, to the extent that our revenue, costs and expenses are denominated in currencies other than our respective functional currencies, we will experience fluctuations in our revenue, costs and expenses solely as a result of changes in foreign currency exchange rates.
Moreover, to the extent that our revenue, costs and expenses are denominated in currencies other than our respective functional currencies, we will experience fluctuations in our revenue, costs and expenses solely as a I-35 result of changes in foreign currency exchange rates.
We also may not be able to enforce future changes to our subscription prices. Additionally, in certain markets, our ability to bundle or discount our services may be constrained if we are held to be dominant with respect to any product we I-40 offer.
We also may not be able to enforce future changes to our subscription prices. Additionally, in certain markets, our ability to bundle or discount our services may be constrained if we are held to be dominant with respect to any product we offer.
Consequently, this waiver limits the right of shareholders to assert claims against our officers and directors unless the act or failure to act involves fraud or dishonesty. I-49 There are regulatory limitations on the ownership and transfer of our common shares.
Consequently, this waiver limits the right of shareholders to assert claims against our officers and directors unless the act or failure to act involves fraud or dishonesty. There are regulatory limitations on the ownership and transfer of our common shares.
In I-38 addition, we are, and in the future may be, a party to certain disputes with regulators and governments from time to time that could have a material adverse effect on our business and results of operations.
In addition, we are, and in the future may be, a party to certain disputes with regulators and governments from time to time that could have a material adverse effect on our business and results of operations.
Certain of these equity interests, such as our interests in our operating subsidiaries of CWP and I-45 C&W Bahamas, are held pursuant to concessions or agreements that provide the terms of the governance of the subsidiaries as well as the ownership of such interests.
Certain of these equity interests, such as our interests in our operating subsidiaries of CWP and C&W Bahamas, are held pursuant to concessions or agreements that provide the terms of the governance of the subsidiaries as well as the ownership of such interests.
I-47 Risks Relating to Our Common Shares and the Securities Market Different classes of our common shares have different voting rights, but all common shares vote together as one class; if you hold Class C common shares you will have no significant voting rights.
Risks Relating to Our Common Shares and the Securities Market Different classes of our common shares have different voting rights, but all common shares vote together as one class; if you hold Class C common shares you will have no significant voting rights.
More significantly, regulatory authorities may I-37 require us to grant third parties access to our bandwidth, frequency capacity, infrastructure, facilities or services to distribute their own services or resell our services to end customers.
More significantly, regulatory authorities may require us to grant third parties access to our bandwidth, frequency capacity, infrastructure, facilities or services to distribute their own services or resell our services to end customers.
For instance, C&W ’s licenses in Jamaica, the Cayman Islands, the British Virgin Islands, Antigua and the Turks and Caicos Islands are in the process of being renewed on the same terms and conditions as before. In addition, in some of the ECTEL states, we are operating under expired licenses and have applied for renewal of such licenses.
For instance, C&W ’s licenses in Jamaica, the Cayman Islands, The Bahamas, Antigua and the Turks and Caicos Islands are in the process of being renewed on the same terms and conditions as before. In addition, in some of the ECTEL states, we are operating under expired licenses and have applied for renewal of such licenses.
To the extent that we have minimum order I-31 commitments, we would be adversely affected in the event that we were unable to resell committed products or otherwise decline to accept committed products.
To the extent that we have minimum order commitments, we would be adversely affected in the event that we were unable to resell committed products or otherwise decline to accept committed products.
Adverse changes in rules and regulations could: • impair our ability to use our bandwidth in ways that would generate maximum revenue and cash flow; • create a shortage of capacity on our networks, which could limit the types and variety of services we seek to provide our customers; • impact our ability to access spectrum for our mobile services; • impact the amount of government funding under certain support programs such as the FCC’s UPR Fund; • strengthen our competitors by granting them access and lowering their costs to enter into our markets; and • otherwise have a significant adverse impact on our results of operations.
Adverse changes in rules and regulations could: • impair our ability to use our bandwidth in ways that would generate maximum revenue and cash flow; • create a shortage of capacity on our networks, which could limit the types and variety of services we seek to provide our customers; • impact our ability to access spectrum for our mobile services; • impact the amount of government funding under certain support programs such as the FCC ’s UPR Fund and the NTIA ’s MMG Program ; • strengthen our competitors by granting them access and lowering their costs to enter into our markets; and • otherwise have a significant adverse impact on our results of operations.
We rely upon intellectual property that is owned or licensed by us to use various technologies, conduct our operations and sell our products and services.
We rely upon intellectual property that is owned or licensed by us to use various technologies, I-32 conduct our operations and sell our products and services.
All these services are provided outside of Cuba and the provision of non-facilities based telecom services to Cuba are permissible under a general license from OFAC . We also have interconnection and services contracts with telecommunications carriers located in Venezuela.
All these services are provided outside of Cuba and the provision of non-facilities based telecom services to Cuba are permissible under the Cuba Assets Control Regulations and a general license from OFAC . We also have interconnection and services contracts with telecommunications carriers located in Venezuela.
Although our Class B common shares are eligible to trade on the OTC Markets, there is no meaningful trading market for these shares and the market price of these shares is subject to volatility. Our Class B common shares are not widely held, with approximately 75% of such outstanding shares as of December 31, 2022 beneficially owned by John C.
Although our Class B common shares are eligible to trade on the OTC Markets, there is no meaningful trading market for these shares and the market price of these shares is subject to volatility. Our Class B common shares are not widely held, with approximately 68% of such outstanding shares as of December 31, 2023 beneficially owned by John C.
Each Class B common share is convertible, at any time at the option of the holder, into one Class A common share. I-48 We may be significantly influenced by one principal shareholder, and he may sell his shares, which may cause the price of our common shares to decrease. As of December 31, 2022, John C.
Each Class B common share is convertible, at any time at the option of the holder, into one Class A common share. We may be significantly influenced by one principal shareholder, and he may sell his shares, which may cause the price of our common shares to decrease. As of December 31, 2023, John C.
Significant additions to our property and equipment are, or in the future may be, required to add customers to our networks and to upgrade or expand our broadband communications networks and upgrade customer premises equipment to enhance our service offerings and improve the customer experience.
Significant additions to our property and equipment are, or in the future may be, required to add customers to our networks and to upgrade or expand our mobile and broadband communications networks and upgrade customer premises equipment to I-31 enhance our service offerings and improve the customer experience.
The risk factors described in this section have been separated into six groups: • risks that relate to the competition we face and the technology used in our businesses; • risks that relate to our operating in overseas markets and being subject to foreign and domestic regulation; • risks that relate to certain financial matters; • risks related to climate change; • risks relating to our corporate history and structure; and I-29 • risks relating to our common shares and the securities market.
The risk factors described in this section have been separated into seven groups: • risks that relate to the competition we face and the technology used in our businesses; • risks that relate to our operating in overseas markets and being subject to foreign and domestic regulation; • risks that relate to certain financial matters; • risks related to cybersecurity; • risks related to climate change; • risks relating to our corporate history and structure; and • risks relating to our common shares and the securities market.
We may face the loss of certain market, customers or significant financial loss due to the physical impacts of climate change.
We may face the loss of certain markets, customers or significant financial loss due to the physical impacts of climate change.
Liberty Puerto Rico’s inability to obtain new or replacement roaming services on a cost-effective basis may limit its ability to compete effectively for wireless customers, which may increase its turnover and decrease its revenue, which in turn could materially adversely affect our business, financial condition and results of operations.
An inability to obtain new or replacement roaming services on a cost-effective basis may limit our ability to compete effectively for wireless customers, which may increase turnover and decrease revenue, which in turn could materially adversely affect our business, financial condition and results of operations.
As of December 31, 2022, we had goodwill of $3,421 million, which represented approximately 25% of our total assets. We evaluate goodwill and other indefinite-lived intangible assets (primarily spectrum licenses and cable television franchise rights) for impairment at least annually on July 1 and whenever facts and circumstances indicate that their carrying amounts may not be recoverable.
As of December 31, 2023, we had goodwill of $3,483 million, which represented approximately 26% of our total assets. We evaluate goodwill and other indefinite-lived intangible assets (primarily spectrum licenses and cable television franchise rights) for impairment at least annually on July 1 and whenever facts and circumstances indicate that their carrying amounts may not be recoverable.
As further described in note 7 to our consolidated financial statements, during the years ended December 31, 2022, 2021 and 2020, we incurred significant goodwill impairments.
As further described in note 8 to our consolidated financial statements, during the years ended December 31, 2022 and 2021, we incurred significant goodwill impairments.
In the provision of video services, we face competition from FTA and DTT broadcasters, DTH satellite providers, networks using DSL , VDSL or vectoring technology, Multi-channel Multipoint Distribution System operators, FTTH networks, OTT content providers, and, in some countries where parts of our systems are overbuilt, with cable & fiber-to-the-home/-cabinet/-building/-node networks, among others.
In the provision of video services, we face competition from FTA and DTT broadcasters, DTH satellite providers, networks using DSL , VDSL or vectoring technology, Multi-channel Multipoint Distribution System operators, FTTH networks, OTT content providers, and, in some countries where parts of our systems are overbuilt, with cable and FTTH networks, among others.
Failure to comply with trade controls. Trade controls implemented by the United States and other governments, particularly with respect to certain suppliers designated by the United States as part of the Chinese Military Industrial Complex, expose our operations to supply chain risks I-41 for certain telecommunications equipment in certain of our markets.
Failure to comply with trade controls. Trade controls implemented by the United States, Costa Rica and other governments, particularly with respect to certain suppliers designated by these governments as part of the Chinese Military Industrial Complex, expose our operations to supply chain risks for certain telecommunications equipment in certain of our markets.
In September 2022, OFAC issued a specific license to allow us to engage in all transactions necessary for U.S. financial institutions to process the collection of outstanding debts and the receipt of current and future payments relating to telecommunications services provided to Compañía Anónima Nacional Teléfonos de Venezuela.
In September 2022, OFAC issued a specific license to allow us to engage in all transactions necessary for U.S. financial institutions to process the collection of outstanding debts and the receipt of current and future payments relating to telecommunications services provided to Compañía Anónima Nacional Teléfonos de Venezuela. OFAC extended this license on August 17, 2023.
We may not be able to generate sufficient cash to meet our debt service obligations.
I-41 We may not be able to generate sufficient cash to meet our debt service obligations.
If Liberty Puerto Rico were to lose the benefit of one or more key roaming or wholesale agreements unexpectedly, it may be unable to obtain similar replacement agreements and as a result may be unable to continue providing the same level of voice and data roaming services for its customers that they’ve grown accustomed to or may be unable to provide such services on a cost-effective basis.
If we were to lose the benefit of one or more key roaming or wholesale agreements unexpectedly, we may be unable to obtain similar replacement agreements and as a result may be unable to continue providing the same level of voice and data roaming services for our customers that they’ve grown accustomed to or may be unable to provide such services on a cost-effective basis.
In particular, we are exposed to the risk of fluctuations in interest rates, primarily through the credit facilities of certain of our subsidiaries, which are indexed to LIBOR or other base rates.
In particular, we are exposed to the risk of fluctuations in interest rates, primarily through the credit facilities of certain of our subsidiaries, which are indexed to Adjusted Term SOFR or other base rates.
Also, even though we regularly review our credit exposures, defaults may arise from events or circumstances that are difficult to detect or foresee. At December 31, 2022, our exposure to counterparty credit risk included (i) cash and cash equivalents and restricted cash balances of $789 million and (ii) aggregate undrawn debt facilities of $899 million.
Also, even though we regularly review our credit exposures, defaults may arise from events or circumstances that are difficult to detect or foresee. At December 31, 2023, our exposure to counterparty credit risk included (i) cash and cash equivalents and restricted cash balances of $1,000 million and (ii) aggregate undrawn debt facilities of $869 million.
In particular, the OECD has recently proposed a provision to impose a minimum tax rate of 15%, among other provisions, and as of 2022 more than 140 countries have tentatively signed on to the framework.
In particular, the OECD has proposed a provision to impose a minimum tax rate of 15%, among other provisions, and as of I-40 2023 more than 140 countries have tentatively signed on to the framework.
Failure to comply with the FCC ’s requirements for the UPR Fund , the ACP or other funding programs in which Liberty Puerto Rico may participate may have an adverse impact on Liberty Puerto Rico ’s business and our financial position.
Failure to comply with the FCC ’s requirements for the UPR Fund , the ACP or other funding programs in which Liberty Puerto Rico may participate may have an adverse impact on Liberty Puerto Rico ’s business and our financial position, and payments by such programs are decreasing and uncertain.
New developments in other areas, such as cloud computing and software as a service provider, could also make it easier for competition to enter our markets due to lower up-front technology costs.
New developments in other areas, such as artificial intelligence, machine learning, cloud computing and software I-33 as a service provider, could also make it easier for competition to enter our markets due to lower up-front technology costs.
Gould, who serve as directors of Liberty Global , and Liberty Global ’s chief financial officer, also serve as directors of Liberty Latin America . Additionally, the chief executive officer of Liberty Global , Michael Fries, also serves as our executive chairman. Our directors (including the executive chairman) have fiduciary duties to our company.
Gould and Daniel Sanchez, who serve as directors of Liberty Global , and Liberty Global ’s chief financial officer, Charles H.R. Bracken, also serve as directors of Liberty Latin America . Additionally, the chief executive officer of Liberty Global , Michael Fries, also serves as our executive chairman. Our directors (including the executive chairman) have fiduciary duties to our company.
If we are unable to retain key employees, our ability to manage our business could be adversely affected. Our operational results depend upon the retention and continued performance of our management team. Our ability to retain and hire new key employees for management positions could be impacted adversely by the competitive environment for management talent in the broadband communications industry.
Our operational results depend upon the retention and continued performance of our management team. Our ability to retain and hire new key employees for management positions could be impacted adversely by the competitive environment for management talent in the broadband communications industry.
Technology in the video, telecommunications and data services industries is changing rapidly, including advances in current technologies and the emergence of new technologies. New technologies, products and services may impact consumer behavior and therefore demand for our products and services.
Technology in the video, telecommunications and data services industries is changing rapidly, including advances in current technologies and the emergence of new technologies, such as the use of artificial intelligence and machine learning. New technologies, products and services may impact consumer behavior and therefore demand for our products and services.
Our ability to acquire new businesses may be limited by many factors, including availability of financing, debt covenants, the prevalence of complex ownership structures among potential targets, government regulation and competition from other potential acquirers, including private equity funds.
Our ability to acquire new businesses may be limited by many factors, including availability of financing, debt covenants, the prevalence of complex ownership structures among potential targets, government regulation, our ability to obtain regulatory approval or satisfy other conditions to completing a transaction, and competition from other potential acquirers, including private equity funds.
Our businesses are highly leveraged. At December 31, 2022, the outstanding principal amount of our debt, together with our finance lease obligations, aggregated $7,975 million, including $227 million that is classified as current in our consolidated balance sheet and $6,868 million that is not due until 2027 or thereafter.
Our businesses are highly leveraged. At December 31, 2023, the outstanding principal amount of our debt, together with our finance lease obligations, aggregated $8,248 million, including $582 million that is classified as current in our consolidated balance sheet and $7,599 million that is not due until 2027 or thereafter.
For example, certain regulators are seeking to mandate third-party access to portions of C&W’s network infrastructure, such as in Jamaica where, further to the recommendation of the OUR, the responsible minister approved the promulgation of The Telecommunications (Infrastructure Sharing) Rules 2022 that seeks to require dominant licensees to share infrastructure (including dark fiber, ducts, subsea cable landing stations and mobile network towers) with third parties, including competitors.
For example, certain regulators are seeking to mandate third-party access to portions of C&W’s network infrastructure, such as in Jamaica where, under The Telecommunications (Infrastructure Sharing) Rules 2022, dominant licensees are required to share infrastructure (including dark fiber, ducts, subsea cable landing stations and mobile network towers) with third parties, including competitors.
In addition, all of our directors and executive officers, other than our directors Alfonso de Angoitia Noriega and Eric L. Zinterhofer, have financial interests in Liberty Global as a result of their ownership of Liberty Global ordinary shares and/or equity awards.
In addition, all of our directors and our executive officers, other than three of our directors (Alfonso de Angoitia Noriega, Roberta S. Jacobson and Eric L. Zinterhofer) and our Chief Technology Officer, Aamir Hussain, have financial interests in Liberty Global as a result of their ownership of Liberty Global ordinary shares and/or equity awards.
Part of our business strategy is to grow and expand our businesses, in part, through selective acquisitions, that enable us to take advantage of existing networks, local service offerings and region-specific management expertise.
Part of our business strategy is to grow and expand our businesses, in part, through selective acquisitions, such as the Puerto Rico and USVI Spectrum Acquisition, that enable us to take advantage of existing networks, local service offerings and region-specific management expertise.
Liberty Puerto Rico receives funds from the FCC through these programs. To continue receiving funds under these programs, Liberty Puerto Rico must comply with certain requirements established by the FCC as described in Item 1. Business—Description of Business—Regulatory Matters .
Liberty Puerto Rico receives funds from the FCC through these programs. To continue receiving funds under these programs, Liberty Puerto Rico, Liberty Mobile U.S. Virgin Islands and Broadband VI, LLC must comply with certain requirements established by the FCC as described in Item 1. Business—Description of Business—Regulatory Matters.
Certain of the company’s directors and an executive officer overlap with Liberty Global , and certain directors and officers have financial interests in Liberty Global , which may lead to conflicting interests. As a result of our split-off from Liberty Global in December 2017, Miranda Curtis and Paul A.
I-47 Certain of the company’s directors and an executive officer overlap with Liberty Global , and certain directors and officers have financial interests in Liberty Global , which may lead to conflicting interests. We were a subsidiary of Liberty Global prior to our split-off in December 2017. Following our split-off, Miranda Curtis, Paul A.
If we are unable to effectively manage our interest rate exposure through derivative transactions, any increase in market interest rates would increase our interest rate exposure and debt service obligations, which would exacerbate the risks associated with our leveraged capital structure.
If we are unable to effectively manage our interest rate exposure through derivative transactions, any increase in market interest rates would increase our interest rate exposure and debt service obligations, which would exacerbate the risks associated with our leveraged capital structure. We are subject to increasing operating costs and inflation risks, which may adversely affect our results of operations.
While we maintain cyber liability insurance that provides both third-party liability and first-party insurance coverage, our insurance may not be sufficient to protect against all of our losses from any future disruptions or breaches of our systems or other events as described above.
While we maintain cyber liability insurance that provides both third-party liability and first-party insurance coverage, our insurance may not be sufficient to protect against all of our losses from any future disruptions or breaches of our systems or other events as described above. I-46 Unauthorized access to our network resulting in piracy could result in a loss of revenue.
Any such impairment charges could be significant. Factors Relating to Climate Change We may face increased costs, limitations of our operations and other adverse impacts from international climate change treaties and accords or national climate-change regulation and legislation.
Risks Relating to Climate Change We may face increased costs, limitations of our operations and other adverse impacts from international climate change treaties and accords or national climate-change regulation and legislation.
The liquidity and value of our interests in certain of our partially-owned subsidiaries, as well as the ability to make decisions related to their operations, may be adversely affected by shareholder agreements and similar agreements to which we are a party. We indirectly own equity interests in a variety of international video, broadband internet, telephony, mobile and other communications businesses.
I-44 The liquidity and value of our interests in certain of our partially-owned subsidiaries, as well as the ability to make decisions related to their operations, may be adversely affected by shareholder agreements and similar agreements to which we are a party.
Although we have not detected a material security breach or cybersecurity incident to date, we have been the target of events of this nature and expect to be subject to similar attacks in the future.
Although we have not suffered a security breach or cybersecurity incident to date that has materially affected our operations or financial condition, we have been the target of attempted attacks of this nature in the past and expect to be subject to similar attacks in the future.

… 22 more changes not shown on this page.

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed0 unchanged
Biggest changeItem 2. PROPERTIES At December 31, 2022, we leased our corporate office in Denver, Colorado, U.S. and our operations center in Panama City, Panama. Additionally, through our C&W Networks & LatAm segment, we own significant portions of our subsea network in the Caribbean region (see Item 1. Business—Description of Business—Products and Services—Business Services ).
Biggest changeItem 2. PROPERTIES At December 31, 2023, we leased our corporate office in Denver, Colorado, U.S. and our operations center in Panama City, Panama. Additionally, through our Liberty Networks segment, we own significant portions of our subsea network in the Caribbean region (see Item 1. Business—Description of Business—Products and Services—Business Services ).
The physical components of their broadband networks require maintenance and periodic upgrades to support the new services and products they introduce. Subject to these maintenance and upgrade activities, our management believes that our current facilities are suitable and adequate for our business operations for the foreseeable future.
The physical components of their networks require maintenance and periodic upgrades to support the new services and products they introduce. Subject to these maintenance and upgrade activities, our management believes that our current facilities are suitable and adequate for our business operations for the foreseeable future.
Also, our subsidiaries either own or lease the fixed assets necessary for the operation of their respective businesses, including office I-50 space, transponder space, headend facilities, rights of way, cable television and telecommunications distribution equipment, telecommunications switches, base stations, poles, cell towers and customer premises equipment and other property necessary for their operations.
Also, our subsidiaries either own or lease the fixed assets necessary for the operation of their respective businesses, including office space, transponder space, headend facilities, rights of way, cable television and telecommunications distribution equipment, telecommunications switches, base stations, poles, cell towers and customer premises equipment and other property necessary for their operations.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed2 unchanged
Biggest changeFor additional information, see note 19 to our consolidated financial statements in Part II of this Annual Report on Form 10-K. Item 4. MINE SAFETY DISCLOSURES Not applicable. I-51 PART II
Biggest changeFor additional information, see note 19 to our consolidated financial statements in Part II of this Annual Report on Form 10-K. Item 4. MINE SAFETY DISCLOSURES Not applicable. I-53 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+2 added−2 removed8 unchanged
Biggest changeThe following table sets forth information concerning our company’s purchase of its own equity securities during the three months ended December 31, 2022: Period Total number of shares purchased Average price paid per share (a) Total number of shares purchased as part of publicly announced plans or programs Approximate dollar value of shares that may yet be purchased under the plans or programs October 1, 2022 through October 31, 2022: Class A 510,400 $ 7.35 510,400 (b) Class C 351,100 $ 7.12 351,100 November 1, 2022 through November 30, 2022: Class A 384,400 $ 7.80 384,400 (b) Class C 95,400 $ 7.86 95,400 December 1, 2022 through December 31, 2022: Class A 941,300 $ 7.22 941,300 (b) Class C 29,200 $ 6.98 29,200 Total — October 1, 2022 through December 31, 2022: Class A 1,836,100 $ 7.38 1,836,100 (b) Class C 475,700 $ 7.26 475,700 (a) Average price paid per share includes direct acquisition costs.
Biggest changePeriod Total number of shares purchased Average price paid per share (a) Total number of shares purchased as part of publicly announced plans or programs Approximate dollar value of shares that may yet be purchased under the plans or programs October 1, 2023 through October 31, 2023: Class A 0.1 $ 8.17 0.1 (b) Class C 0.8 $ 7.63 0.8 November 1, 2023 through November 30, 2023: Class A — $ — — (b) Class C — $ — — December 1, 2023 through December 31, 2023: Class A — $ — — (b) Class C — $ — — Total — October 1, 2023 through December 31, 2023: Class A 0.1 $ 8.17 0.1 (b) Class C 0.8 $ 7.63 0.8 (a) Average price paid per share includes direct acquisition costs.
Securities Authorized for Issuance Under Equity Compensation Plans Information required by this item is incorporated by reference to our definitive proxy statement for our 2023 Annual General Meeting of Shareholders. Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities All information under this Item has been previously reported on our Current Reports on Form 8-K.
Securities Authorized for Issuance Under Equity Compensation Plans Information required by this item is incorporated by reference to our definitive proxy statement for our 2024 Annual General Meeting of Shareholders. Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities All information under this Item has been previously reported on our Current Reports on Form 8-K.
II-2 Stock Performance Graph The following graph compares the changes in the cumulative total shareholder return on our Liberty Latin America Class A and Class C ordinary shares from January 2, 2018 to December 31, 2022, to the change in the cumulative total return on the MSCI Emerging Markets NTR Index and the Nasdaq Composite TR Index (assuming reinvestment of dividends, where applicable).
II-2 Stock Performance Graph The following graph compares the changes in the cumulative total shareholder return on our Liberty Latin America Class A and Class C ordinary shares from December 31, 2018 to December 31, 2023, to the change in the cumulative total return on the MSCI Emerging Markets NTR Index and the Nasdaq Composite TR Index (assuming reinvestment of dividends, where applicable).
Management’s Discussion and Analysis of Financial Condition and Results of Operations and note 9 to our consolidated financial statements, there are currently no contractual restrictions on our ability to pay dividends in cash or shares.
Management’s Discussion and Analysis of Financial Condition and Results of Operations and note 10 to our consolidated financial statements, there are currently no contractual restrictions on our ability to pay dividends in cash or shares.
January 2, December 31, 2018 2018 2019 2020 2021 2022 Liberty Latin America Shares - Class A $ 100.00 $ 67.10 $ 89.43 $ 51.58 $ 54.03 $ 34.89 Liberty Latin America Shares - Class C $ 100.00 $ 68.12 $ 90.98 $ 51.85 $ 53.30 $ 35.53 MSCI Emerging Markets NTR Index $ 100.00 $ 84.00 $ 99.48 $ 117.73 $ 114.70 $ 91.66 Nasdaq Composite TR Index $ 100.00 $ 95.72 $ 130.84 $ 189.61 $ 231.66 $ 156.29 Item 6. [Reserved] II-3
December 31, 2018 2019 2020 2021 2022 2023 Liberty Latin America Shares - Class A $ 100.00 $ 89.43 $ 51.58 $ 54.03 $ 34.89 $ 33.87 Liberty Latin America Shares - Class C $ 100.00 $ 90.98 $ 51.85 $ 53.30 $ 35.53 $ 34.32 MSCI Emerging Markets NTR Index $ 100.00 $ 99.48 $ 117.73 $ 114.70 $ 91.66 $ 100.67 Nasdaq Composite TR Index $ 100.00 $ 130.84 $ 189.61 $ 231.66 $ 156.29 $ 226.06 Item 6. [Reserved] II-3
(b) At December 31, 2022, the remaining amount authorized for repurchases of Liberty Latin America Shares was $57 million.
(b) At December 31, 2023, the remaining amount authorized for repurchases of Liberty Latin America Shares was $139 million.
The graph assumes that $100 was invested on January 2, 2018.
The graph assumes that $100 was invested on December 31, 2018.
Class B High Low Year ended December 31, 2022 First quarter $ 9.00 $ 8.06 Second quarter $ 9.00 $ 7.50 Third quarter $ 9.69 $ 6.00 Fourth quarter $ 9.50 $ 6.20 Year ended December 31, 2021 First quarter (a) $ 17.00 $ 17.00 Second quarter (a) $ 17.00 $ 17.00 Third quarter $ 10.25 $ 10.25 Fourth quarter $ 10.80 $ 10.30 (a) During the first two quarters of 2021, no trades occurred.
Class B High Low Year ended December 31, 2023 First quarter $ 11.00 $ 8.01 Second quarter $ 11.00 $ 7.11 Third quarter $ 11.00 $ 6.74 Fourth quarter $ 8.19 $ 7.45 Year ended December 31, 2022 First quarter $ 9.00 $ 8.06 Second quarter $ 9.00 $ 7.50 Third quarter $ 9.69 $ 6.00 Fourth quarter $ 9.50 $ 6.20 Holders As of January 31, 2024, we had the following number of holders of record of our common stock: 10,748 Class A; 19 Class B; and 24,738 Class C.
Removed
As such, the high and low prices shown for these periods relate to the last actual trade, which was during the second quarter of 2020. Holders As of January 31, 2023, we had the following number of holders of record of our common stock: 10,798 Class A; 22 Class B; and 24,814 Class C.
Added
On May 8, 2023, our Directors approved an additional $200 million under the 2022 Share Repurchase Program through December 2025. The following table sets forth information concerning our company’s purchase of its own equity securities during the three months ended December 31, 2023 (in millions, except per share amounts).
Removed
The 2022 Share Repurchase Program does not obligate us to repurchase any of our Class A or C common shares.
Added
Due to rounding, the total number of shares purchased during the quarter may not recalculate.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 6. [Reserved] II- 3 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations II- 4 Item 7A. Quantitative and Qualitative Disclosures About Market Risk II- 32 Item 8. Financial Statements and Supplementary Data II- 36
Biggest changeItem 6. [Reserved] II- 3 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations II- 4 Item 7A. Quantitative and Qualitative Disclosures About Market Risk II- 30 Item 8. Financial Statements and Supplementary Data II- 33

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

117 edited+22 added−35 removed63 unchanged
Biggest changeIncrease (decrease) from: Year ended December 31, Increase (decrease) An acquisition 2022 2021 Organic in millions Personnel and contract labor $ 162.2 $ 142.1 $ 20.1 $ 1.9 $ 18.2 Network-related 51.7 47.8 3.9 0.2 3.7 Service-related 45.0 41.6 3.4 1.4 2.0 Commercial 46.5 52.5 (6.0) — (6.0) Facility, provision, franchise and other 183.9 165.4 18.5 2.5 16.0 Share-based compensation expense 7.3 6.4 0.9 — 0.9 Total other operating costs and expenses $ 496.6 $ 455.8 $ 40.8 $ 6.0 $ 34.8 • Personnel and contract labor: The organic increase is primarily due to the net effect of (i) higher salaries and other personnel costs, including the impact of higher amortization of deferred commissions associated with certain accounting in connection with the AT&T Acquisition, (ii) an increase in charges allocated from our Corporate operations, and (iii) lower bonus-related expenses. • Network-related: The organic increase is primarily due to the net effect of (i) incremental expenses incurred in operating the network as a result of the impacts from Hurricane Fiona, (ii) lower costs related to the termination of the transition services agreement entered into with AT&T associated with network maintenance and licenses, and (iii) an increase in network-related integration costs associated with the AT&T Acquisition. • Service-related: The organic increase is primarily due to the net effect of (i) an increase in charges allocated from our Corporate operations and (ii) lower costs associated with the termination of the transition services agreement entered into with AT&T associated with commissions and software licenses.
Biggest changeYear ended December 31, Increase (decrease) 2023 2022 in millions Personnel and contract labor $ 154.9 $ 162.2 $ (7.3) Network-related 52.5 51.7 0.8 Service-related 79.5 46.1 33.4 Commercial 51.2 46.5 4.7 Facility, provision, franchise and other 206.7 183.9 22.8 Share-based compensation expense 6.2 7.3 (1.1) Total other operating costs and expenses $ 551.0 $ 497.7 $ 53.3 • Personnel and contract labor: The decrease is primarily driven by the net effect of (i) a decline resulting from the receipt of a payroll tax credits during 2023 awarded to businesses that continued to pay employees or that experienced significant declines in gross receipts during the COVID-19 pandemic and (ii) higher amortization of deferred commissions in connection with the AT&T Acquisition. • Network-related: The increase is primarily due to the net effect of (i) an increase in maintenance costs and (ii) a decline resulting from costs associated with Hurricane Fiona incurred during 2022. • Service-related: The increase is primarily due to higher (i) professional services charges, including (a) the impact of certain accrual adjustments during 2022 and (b) an increase in service-related integration costs, (ii) IT-related services, including higher software license costs, and (iii) fees charged from our corporate operations. • Commercial: The increase is primarily driven by higher marketing costs. • Facility, provision, franchise and other: The increase is primarily related to higher (i) bad debt expense, including the impact from the benefit during 2022 associated with lower expected credit loss rates established, (ii) rent expense and (iii) energy costs.
In the absence of significant gains in the future from these sources or from other non-operating items, our ability to achieve earnings is largely dependent on our ability to increase our aggregate Adjusted OIBDA to a level that more than offsets the aggregate amount of our (i) share-based compensation expense, (ii) depreciation and amortization, (iii) impairment, restructuring and other operating items, (iv) interest expense, (v) other non-operating expenses and (vi) income tax expenses.
In the absence of significant gains in the future from these sources or from other non-operating items, our ability to achieve earnings is largely dependent on our ability to increase our aggregate Adjusted OIBDA to a level that more than offsets the aggregate amount of our (i) share-based compensation expense, (ii) depreciation and amortization, (iii) impairment, restructuring and other operating items, (iv) interest expense, (v) other non-operating expenses and (vi) income tax expense.
These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods. In addition, the amounts presented do not include the impact of our derivative contracts. For information concerning our debt and finance lease obligations, operating leases and commitments, see notes 9, 10 and 19, respectively, to our consolidated financial statements.
These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods. In addition, the amounts presented do not include the impact of our derivative contracts. For information concerning our operating leases, debt and finance lease obligations and commitments, see notes 9, 10 and 19, respectively, to our consolidated financial statements.
II-23 The income tax expense attributable to our loss before income taxes during 2022 differs from the amounts computed using the statutory tax rate, primarily due to the detrimental effects of (i) permanent tax differences, such as non deductible goodwill impairment and other non-deductible expenses, (ii) effect of rate changes (but which are nearly entirely offset by valuation allowance), (iii) changes in uncertain tax positions, (iv) inclusion of withholding taxes on cross-border payments, (v) expiration of deferred tax assets (which are entirely offset by valuation allowance), and (vi) tax effect of the enactment of a Barbados Pandemic Contribution Levy.
The income tax expense attributable to our loss before income taxes during 2022 differs from the amounts computed using the statutory tax rate, primarily due to the detrimental effects of (i) permanent tax differences, such as non deductible goodwill impairment and other non-deductible expenses, (ii) effect of rate changes (but which are nearly entirely offset by valuation allowance), (iii) changes in uncertain tax positions, (iv) inclusion of withholding taxes on cross-border payments, (v) expiration of deferred tax assets (which are entirely offset by valuation allowance), and (vi) tax effect of the enactment of a Barbados Pandemic Contribution Levy.
Other operating costs and expenses Other operating costs and expenses set forth in the tables below comprise the following cost categories: • Personnel and contract labor-related costs, which primarily include salary-related and cash bonus expenses, net of capitalizable labor costs, and temporary contract labor costs; • Network-related expenses, which primarily include costs related to network access, system power, core network, and CPE repair, maintenance and test costs; • Service-related costs, which primarily include professional services, information technology-related services, audit, legal and other services; • Commercial, which primarily includes sales and marketing costs, such as advertising, commissions and other sales and marketing-related costs, and customer care costs related to outsourced call centers; II-16 • Facility, provision, franchise and other, which primarily includes facility-related costs, provision for bad debt expense, franchise-related fees, bank fees, insurance, vehicle-related, travel and entertainment and other operating-related costs; and • Share-based compensation expense that relates to (i) equity awards issued to our employees and Directors and (ii) certain bonus-related expenses that are paid in the form of equity.
Other operating costs and expenses Other operating costs and expenses set forth in the table below comprise the following cost categories: • Personnel and contract labor-related costs, which primarily include salary-related and cash bonus expenses, net of capitalizable labor costs, and temporary contract labor costs; • Network-related expenses, which primarily include costs related to network access, system power, core network, and CPE repair, maintenance and test costs; • Service-related costs, which primarily include professional services, information technology-related services, audit, legal and other services; • Commercial, which primarily includes sales and marketing costs, such as advertising, commissions and other sales and marketing-related costs, and customer care costs related to outsourced call centers; • Facility, provision, franchise and other, which primarily includes facility-related costs, provision for bad debt expense, franchise-related fees, bank fees, insurance, vehicle-related, travel and entertainment and other operating-related costs; and II-16 • Share-based compensation expense that relates to (i) equity awards issued to our employees and Directors and (ii) certain bonus-related expenses that are paid in the form of equity.
In addition, Liberty Latin America and its unrestricted subsidiaries may require cash in connection with (i) the repayment of third-party and intercompany debt, (ii) the satisfaction of contingent liabilities, (iii) acquisitions and other investment opportunities, (iv) the repurchase of debt securities, (v) tax payments or (vi) any funding requirements of our consolidated subsidiaries.
In addition, Liberty Latin America and its unrestricted subsidiaries may require cash in connection with (i) the repayment of third-party and intercompany debt, (ii) the satisfaction of contingent liabilities, (iii) II-24 acquisitions and other investment opportunities, (iv) the repurchase of debt securities, (v) tax payments or (vi) any funding requirements of our consolidated subsidiaries.
The interest rate is based on stated rates and does not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.
The interest rate is generally based on stated rates and does not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.
Capitalization We seek to maintain our debt at levels that provide for attractive equity returns without assuming undue risk. When it is cost effective, we generally seek to match the denomination of the borrowings of our subsidiaries with the functional currency of the operations that support the respective borrowings. As further discussed under Item 7A.
Capitalization We seek to maintain our debt at levels that are expected to provide for attractive equity returns without assuming undue risk. When it is cost effective, we generally seek to match the denomination of the borrowings of our subsidiaries with the functional currency of the operations that support the respective borrowings. As further discussed under Item 7A.
No assurance can be given that we would have sufficient sources of liquidity, or that any external funding would be available on favorable terms, or at all, to fund any such required repayment. At December 31, 2022, each of our borrowing groups was in compliance with its debt covenants.
No assurance can be given that we would have sufficient sources of liquidity, or that any external funding would be available on favorable terms, or at all, to fund any such required repayment. At December 31, 2023, each of our borrowing groups was in compliance with its debt covenants.
Liberty Puerto Rico . The following table sets forth the organic changes in programming and other direct costs of services for our Liberty Puerto Rico segment.
Liberty Puerto Rico . The following table sets forth the changes in programming and other direct costs of services for our Liberty Puerto Rico segment.
II-18 Liberty Puerto Rico . The following table sets forth the organic changes in other operating costs and expenses for our Liberty Puerto Rico segment.
II-18 Liberty Puerto Rico . The following table sets forth the changes in other operating costs and expenses for our Liberty Puerto Rico segment.
II-26 We believe that we have sufficient resources to repay or refinance the current portion of our debt and finance lease obligations and to fund our foreseeable liquidity requirements during the next 12 months. However, as our debt maturities grow in later years, we anticipate that we will seek to refinance or otherwise extend our debt maturities.
We believe that we have sufficient resources to repay or refinance the current portion of our debt and finance lease obligations and to fund our foreseeable liquidity requirements during the next 12 months. However, as our debt maturities grow in later years, we anticipate that we will seek to refinance or otherwise extend our debt maturities.
Our liability for uncertain tax positions, including accrued interest, in the various jurisdictions in which we operate ( $51 million at December 31, 2022) has been excluded from the table as the amount and timing of any related payments are not subject to reasonable estimation.
Our liability for uncertain tax positions, including accrued interest, in the various jurisdictions in which we operate ($51 million at December 31, 2023) has been excluded from the table as the amount and timing of any related payments are not subject to reasonable estimation.
It is possible that the interest rates on (i) any new borrowings could be higher than the current interest rates on our existing indebtedness and (ii) our variable-rate indebtedness could increase in future periods. As further discussed in note 5 to our consolidated financial statements and under Item 7A.
It is possible that the interest rates on (i) any new borrowings could be higher than the current interest rates on our existing indebtedness and (ii) our variable-rate indebtedness could increase in future periods. As further discussed in note 7 to our consolidated financial statements and under Item 7A.
C&W Panama. The following table sets forth the organic changes in other operating costs and expenses for our C&W Panama segment.
C&W Panama. The following table sets forth the organic and non-organic changes in other operating costs and expenses for our C&W Panama segment.
We provide, A. residential and B2B services in: i. over 20 countries across Latin America and the Caribbean through two of our reportable segments, C&W Caribbean and C&W Panama; ii. Puerto Rico, through our reportable segment Liberty Puerto Rico; iii. Costa Rica, through our reportable segment Liberty Costa Rica; iv.
We provide, A. residential and B2B services in: i. over 20 countries across Latin America and the Caribbean through two of our reportable segments, C&W Caribbean and C&W Panama; ii. Puerto Rico and USVI, through our reportable segment Liberty Puerto Rico; and iii. Costa Rica, through our reportable segment Liberty Costa Rica.
This section provides an analysis of our results of operations for the years ended December 31, 2022 and 2021. • Liquidity and Capital Resources. This section provides an analysis of our liquidity, consolidated statements of cash flows and contractual commitments. • Critical Accounting Policies, Judgments and Estimates.
This section provides an analysis of our results of operations for the years ended December 31, 2023 and 2022. • Liquidity and Capital Resources. This section provides an analysis of our liquidity, consolidated statements of cash flows and contractual commitments. • Critical Accounting Policies, Judgments and Estimates.
This section discusses those material accounting policies that involve uncertainties and require significant judgment in their application. Unless otherwise indicated, operational data (including subscriber statistics) is presented as of December 31, 2022.
This section discusses those material accounting policies that involve uncertainties and require significant judgment in their application. Unless otherwise indicated, operational data (including subscriber statistics) is presented as of December 31, 2023.
The noncontrolling owners’ interests in the operating results of (i) certain subsidiaries of C&W and (ii) Liberty Costa Rica are reflected in net earnings or loss attributable to noncontrolling interests in our consolidated statements of operations.
The noncontrolling owners’ interests in the operating results of (i) certain subsidiaries of C&W and Liberty Puerto Rico, and (ii) Liberty Costa Rica are reflected in net earnings or loss attributable to noncontrolling interests in our consolidated statements of operations.
Quantitative and Qualitative Disclosures about Market Risk and in note 5 to our consolidated financial statements, we also use derivative instruments to mitigate foreign currency and interest rate risks associated with our debt instruments.
Quantitative and Qualitative Disclosures about Market Risk and in note 7 to our consolidated financial statements, we also use derivative instruments to mitigate foreign currency and interest rate risks associated with our debt instruments.
For details of the restrictions on our subsidiaries to make payments to us through dividends, loans or other distributions see note 9 to our consolidated financial statements.
For details of the restrictions on our subsidiaries to make payments to us through dividends, loans or other distributions see note 10 to our consolidated financial statements.
II-15 Liberty Costa Rica . The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our Liberty Costa Rica segment.
Liberty Costa Rica . The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our Liberty Costa Rica segment.
A significant portion of our long-lived assets were initially recorded through the application of acquisition accounting. For additional information, including the specific weighted average discount rates we used to complete certain nonrecurring valuations, see note 6 to our consolidated financial statements. For information regarding our acquisitions and long-lived assets, see notes 4 and 7, respectively, to our consolidated financial statements.
A significant portion of our long-lived assets were initially recorded through the application of acquisition accounting. For additional information, including the specific weighted average discount rates we used to complete certain nonrecurring valuations, see note 4 to our consolidated financial statements. For information regarding our acquisitions and long-lived assets, see notes 5 and 8, respectively, to our consolidated financial statements.
A discussion regarding our financial condition and results of operations for the year ended December 31, 2021 compared with the year ended December 31, 2020 can be found under captions entitled “ Results of Operations ” and “ Liquidity and Capital Resources ” in the section entitled “ Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of our annual report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 1, 2022, which is available free of charge through the SEC’s website at www.sec.gov or the Company’s website, https://investors.lla.com/financials/sec-filings.
A discussion regarding our financial condition and results of operations for the year ended December 31, 2022 compared with the year ended December 31, 2021 can be found under captions entitled “ Results of Operations ” and “ Liquidity and Capital Resources ” in the section entitled “ Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of our annual report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 22, 2023, which is available free of charge through the SEC’s website at www.sec.gov or the Company’s website, https://investors.lla.com/financials/sec-filings.
Our borrowing groups, which typically generate cash from operating activities, held a significant portion of our consolidated cash and cash equivalents at December 31, 2022.
Our borrowing groups, which typically generate cash from operating activities, held a significant portion of our consolidated cash and cash equivalents at December 31, 2023.
Historically, these arrangements have not resulted in our company making any material payments and we do not believe that they will result in material payments in the future. II-28 Contractual Commitments The following table sets forth the U.S. dollar equivalents of our debt and certain other contractual obligations and commitments as of December 31, 2022.
Historically, these arrangements have not resulted in our company making any material payments and we do not believe that they will result in material payments in the future. II-27 Contractual Commitments The following table sets forth the U.S. dollar equivalents of our debt and certain other contractual obligations and commitments as of December 31, 2023.
II-19 Liberty Costa Rica . The following table sets forth the organic and non-organic changes in other operating costs and expenses for our Liberty Costa Rica segment.
Liberty Costa Rica . The following table sets forth the organic and non-organic changes in other operating costs and expenses for our Liberty Costa Rica segment.
For information regarding our defined benefit plans, see note 14 to our consolidated financial statements. II-29 Critical Accounting Policies, Judgments and Estimates In connection with the preparation of our consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.
For information regarding our defined benefit plans, see note 11 to our consolidated financial statements. II-28 Critical Accounting Policies, Judgments and Estimates In connection with the preparation of our consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.
Gains or losses on debt modification and extinguishment, net Our gains or losses on debt modification and extinguishment generally include (i) premiums or discounts associated with redemptions and/or repurchases of debt, (ii) the write-off of unamortized deferred financing costs, premiums and/or discounts and/or (iii) breakage fees.
Gains or losses on debt extinguishments, net Our gains or losses on debt extinguishments generally include (i) premiums or discounts associated with redemptions and/or repurchases of debt, (ii) the write-off of unamortized deferred financing costs, premiums and/or discounts and/or (iii) breakage fees.
Quantitative and Qualitative Disclosures About Market Risk—Projected Cash Flows Associated with Derivative Instruments below . For information regarding our derivative instruments, including the net cash paid or received in connection with these instruments during 2022, 2021 and 2020, see note 5 to our consolidated financial statements.
Quantitative and Qualitative Disclosures About Market Risk—Projected Cash Flows Associated with Derivative Instruments below . For information regarding our derivative instruments, including the net cash paid or received in connection with these instruments during 2023, 2022 and 2021, see note 7 to our consolidated financial statements.
For additional information concerning our significant accounting policies, see note 3 to our consolidated financial statements. Impairment of Property and Equipment and Intangible Assets The aggregate carrying value of our property and equipment and intangible assets (including goodwill) that was held for use comprised 74% of our total assets at December 31, 2022.
For additional information concerning our significant accounting policies, see note 3 to our consolidated financial statements. Impairment of Property and Equipment and Intangible Assets The aggregate carrying value of our property and equipment and intangible assets (including goodwill) that was held for use comprised 72% of our total assets at December 31, 2023.
In the following discussion, we discuss ARPU changes in terms of the net impact of the above factors on the ARPU that is derived from our video, broadband internet, fixed-line telephony and mobile products. The following tables set forth the organic and non-organic changes in revenue by reportable segment.
In the following discussion, we discuss ARPU changes in terms of the net impact of the above factors on the ARPU that is derived from our video, broadband internet, fixed-line telephony and mobile products. The following table sets forth the organic and non-organic changes in revenue by reportable segment.
Liquidity and Capital Resources Sources and Uses of Cash As of December 31, 2022, we have three primary “borrowing groups,” which include the respective restricted parent and subsidiary entities of C&W, Liberty Puerto Rico and Liberty Costa Rica.
II-23 Liquidity and Capital Resources Sources and Uses of Cash As of December 31, 2023, we have three primary “borrowing groups,” which include the respective restricted parent and subsidiary entities of C&W, Liberty Puerto Rico and Liberty Costa Rica.
Corporate . The following table sets forth the organic and non-organic changes in other operating costs and expenses for our corporate operations.
Corporate . The following table sets forth the changes in other operating costs and expenses for our corporate operations.
Our cash used during 2022 primarily includes the net effect of (i) capital expenditures, net, as further discussed below, (ii) the Claro Panama Acquisition and BBVI Acquisition and (iii) cash outflow upon the disposition the Chile JV Entities. Our cash used during 2021 primarily includes (i) capital expenditures, as further discussed below, and (ii) the Liberty Telecomunicaciones Acquisition.
The cash used during 2022 primarily includes the net effect of (i) capital expenditures, net, as further discussed below, (ii) the Claro Panama Acquisition and BBVI Acquisition and (iii) cash outflow upon the disposition the Chile JV Entities.
Programming and other direct costs of services Programming and other direct costs of services include programming and copyright costs, interconnect and access costs, equipment costs, which primarily relate to costs of mobile handsets and other devices, and other direct costs related to our operations.
II-13 Programming and other direct costs of services Programming and other direct costs of services include programming and copyright costs, interconnect and access costs, equipment costs, which primarily relate to costs of mobile handsets and other devices, project-related costs and other direct costs related to our operations.
C&W Panama. The following table sets forth the organic changes in programming and other direct costs of services for our C&W Panama segment.
II-14 C&W Panama . The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our C&W Panama segment.
(c) The commitments included in this table do not reflect any liabilities that are included in our December 31, 2022 consolidated balance sheet other than debt, finance lease obligations and operating lease obligations.
(b) The commitments included in this table do not reflect any liabilities that are included in our December 31, 2023 consolidated balance sheet other than debt, finance lease obligations and operating lease obligations.
The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our VTR segment.
Liberty Networks . The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our Liberty Networks segment.
During 2022, the aggregate value of our share repurchases was $169 million. For additional information regarding our Share Repurchase Programs, see note 17 to our consolidated financial statements and above Part II—Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities .
During 2023, the aggregate value of our share repurchases was $118 million. For additional information regarding our Share Repurchase Programs, see note 12 to our consolidated financial statements and above Part II—Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities .
For the details of the borrowing availability of our borrowing groups at December 31, 2022, see note 9 to our consolidated financial statements. The aforementioned sources of liquidity may be II-25 supplemented in certain cases by contributions and/or loans from Liberty Latin America and its unrestricted subsidiaries.
For the details of the borrowing availability of our borrowing groups at December 31, 2023, see note 10 to our consolidated financial statements. The aforementioned sources of liquidity may be supplemented in certain cases by contributions and/or loans from Liberty Latin America and its unrestricted subsidiaries.
The income tax expense attributable to our earnings before income taxes during 2021 differs from the amounts computed using the statutory tax rate, primarily due to detrimental effects of (i) net increases in valuation allowances, (ii) permanent tax differences, such as non deductible goodwill impairment and other non-deductible expenses, (iii) expiration of deferred tax assets (which are entirely offset by valuation allowance), and (iv) inclusion of withholding taxes on cross-border payments.
The income tax expense attributable to our loss before income taxes during 2023 differs from the amounts computed using the statutory tax rate, primarily due to the detrimental effects of (i) net increases in valuation allowances, (ii) permanent tax differences, such as non-deductible expenses, (iii) expiration of deferred tax assets (which are entirely offset by valuation allowance), and (iv) inclusion of withholding taxes on cross-border payments and capital gains tax.
For additional information regarding our liability for uncertain tax positions, see note 13 to our consolidated financial statements. (d) Amounts are based on interest rates, interest payment dates, commitment fees and contractual maturities in effect as of December 31, 2022.
For additional information regarding our liability for uncertain tax positions, see note 16 to our consolidated financial statements. (c) Amounts are based on interest rates, interest payment dates, commitment fees and contractual maturities in effect as of December 31, 2023.
With respect to disposals, the prior-year operating results of disposed entities are excluded from organic changes and the calculations of our organic change percentages to the same extent that those operations are not included in the current year.
With respect to disposals, the prior-year operating results of disposed entities are excluded from organic changes to the same extent that those operations are not included in the current year.
Our cash flows are subject to variations due to FX. For further information, see related discussion under Item 7A. Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk below. Consolidated Statements of Cash Flows—2022 compared to 2021 Summary.
Our cash flows are subject to variations due to FX. For further information, see related discussion under Item 7A. Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk below. Summary.
The weighted average impact of the derivative instruments, excluding forward-starting derivative instruments, on our borrowing costs at December 31, 2022 was as follows: Borrowing group Decrease to borrowing costs C&W (1.30) % Liberty Puerto Rico (0.49) % Liberty Costa Rica (1.57) % Liberty Latin America borrowing groups (0.98) % Including the effects of derivative instruments, original issue premiums or discounts, including the discount on the Convertible Notes associated with the instrument’s conversion option, and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 5.7% at December 31, 2022.
The weighted average impact of the derivative instruments on our borrowing costs at December 31, 2023 was as follows: Borrowing group Decrease to borrowing costs C&W (1.7) % Liberty Puerto Rico (0.8) % Liberty Costa Rica — % Liberty Latin America borrowing groups (1.3) % Including the effects of derivative instruments, original issue premiums or discounts, including the discount on the Convertible Notes associated with the instrument’s conversion option, and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 6.0% at December 31, 2023.
C&W Networks & LatAm also provides wholesale communication services over its subsea and terrestrial fiber optic cable networks. While not specifically discussed in the below explanations of the changes in revenue, we are experiencing significant competition in all of our markets. This competition has an adverse impact on our ability to increase or maintain our RGUs and/or ARPU.
Liberty Networks also provides wholesale services over its subsea and terrestrial fiber optic cable networks. While not specifically discussed in the below explanations of the changes in revenue, we experience significant competition in all of our markets. Competition has an adverse impact on our ability to increase or maintain our RGUs and/or ARPU.
These negative impacts to our effective tax rate were partially offset by the beneficial effects of (i) jurisdictional rate differences, (ii) changes in enacted tax rates (but which are nearly entirely offset by valuation allowance), and (iii) permanent tax differences, such as non-taxable income.
These negative impacts to our effective tax rate were partially offset by the beneficial effects of (i) permanent tax differences, such as non-taxable income, (ii) effect of rate changes (but which are nearly entirely offset by valuation allowance), (iii) jurisdictional rate differences, (iv) effect of tax credits and (v) changes in uncertain tax positions.
However, a majority of our subsidiaries operate in jurisdictions where income tax is imposed at local applicable statutory rates. For additional information, see note 13 to our consolidated financial statements. We recognized income tax expense of $87 million and $173 million during 2022 and 2021, respectively.
However, a majority of our subsidiaries operate in jurisdictions where income tax is imposed at local applicable statutory rates. For additional information, see note 16 to our consolidated financial statements. We recognized income tax expense of $24 million and $85 million during 2023 and 2022, respectively.
Net earnings or loss The following table sets forth selected summary financial information of our net loss: Year ended December 31, 2022 2021 in millions Operating income $ 94.1 $ 67.3 Net non-operating expenses $ (209.5) $ (381.8) Income tax expense $ (86.5) $ (173.3) Net loss $ (201.9) $ (487.8) Gains or losses associated with (i) changes in the fair values of derivative instruments and (ii) movements in foreign currency exchange rates are subject to a high degree of volatility and, as such, any gains from these sources do not represent a reliable source of income.
Net earnings or loss The following table sets forth selected summary financial information of our net loss: Year ended December 31, 2023 2022 in millions Operating income $ 517.7 $ 86.5 Net non-operating expenses $ (580.1) $ (209.5) Income tax expense $ (24.4) $ (84.8) Net loss $ (86.8) $ (207.8) Gains or losses associated with (i) changes in the fair values of derivative instruments and (ii) movements in foreign currency exchange rates are subject to a high degree of volatility and, as such, any gains from these sources do not represent a reliable source of income.
(d) Includes $89 million and $51 million of cash held by operations in C&W Panama and C&W Bahamas, respectively.
(d) Includes $145 million and $55 million of cash held by operations in C&W Panama and C&W Bahamas, respectively.
At December 31, 2022, the outstanding principal amount of our debt, together with our finance lease obligations aggregated $7,975 million, including $227 million that is classified as current in our consolidated balance sheet and $6,868 million that is not due until 2027 or thereafter.
At December 31, 2023, the outstanding principal amount of our debt, together with our finance lease obligations aggregated $8,248 million, including $582 million that is classified as current in our consolidated balance sheet and $7,599 million that is not due until 2027 or thereafter.
C&W Networks & LatAm. The following table sets forth the organic changes in other operating costs and expenses for our C&W Networks & LatAm segment.
Liberty Networks. The following table sets forth the organic and non-organic changes in other operating costs and expenses for our Liberty Networks segment.
Year ended December 31, Increase (decrease) Increase (decrease) from: 2022 2021 FX Organic in millions Personnel and contract labor $ 43.6 $ 44.3 $ (0.7) $ (2.6) $ 1.9 Network-related 43.3 45.8 (2.5) (1.1) (1.4) Service-related 4.5 3.7 0.8 — 0.8 Commercial 1.4 1.0 0.4 — 0.4 Facility, provision, franchise and other 21.7 17.1 4.6 (1.5) 6.1 Share-based compensation expense 3.4 4.6 (1.2) — (1.2) Total other operating costs and expenses $ 117.9 $ 116.5 $ 1.4 $ (5.2) $ 6.6 • Facility, provision, franchise and other: The organic increase is primarily due to higher bad debt provisions and travel-related costs.
Year ended December 31, Increase (decrease) Increase (decrease) from: 2023 2022 FX Organic in millions Personnel and contract labor $ 45.0 $ 43.6 $ 1.4 $ (0.4) $ 1.8 Network-related 45.7 43.3 2.4 — 2.4 Service-related 6.1 4.5 1.6 — 1.6 Commercial 1.7 1.4 0.3 — 0.3 Facility, provision, franchise and other 24.6 21.7 2.9 — 2.9 Share-based compensation expense 3.1 3.4 (0.3) (0.1) (0.2) Total other operating costs and expenses $ 126.2 $ 117.9 $ 8.3 $ (0.5) $ 8.8 • Personnel and contract labor: The organic increase is primarily due to higher salary-related expenses. • Network-related: The organic increase is primarily related to higher repair and maintenance costs. • Facility, provision, franchise and other: The organic increase is primarily due to higher bank and tax-related fees.
II-13 Consolidated. The following tables set forth the organic and non-organic changes in programming and other direct costs of services on a consolidated basis.
Consolidated. The following table sets forth the organic and non-organic changes in programming and other direct costs of services on a consolidated basis.
The decrease in cash provided by operating activities is primarily due to (i) a decrease resulting from an increase in cash paid for taxes and interest, (ii) an increase related to lower derivative-related payments, and (iii) a decrease associated with a decline in Adjusted OIBDA and related working capital change. Investing Activities.
The increase in cash provided by operating activities is primarily due to the net effect of (i) an increase resulting from lower net derivative payments, (ii) an increase associated with lower tax payments, (iii) a decrease associated with higher interest payments and (iv) a decrease associated with a decline in Adjusted OIBDA and related working capital items. II-26 Investing Activities.
During the year ended December 31, 2022, we used $29 million of cash from financing activities, primarily due to $170 million associated with the repurchase of Liberty Latin America common shares, partially offset by (i) $98 million of net cash received related to derivative instruments and (ii) $61 million of net borrowings of debt, which include the impact of $48 million of cash used to extinguish debt at VTR.
During 2022, we used $29 million of cash from financing activities, primarily due to $170 million associated with the repurchase of Liberty Latin America common shares, partially offset by (i) $98 million of net cash received primarily related to the settlement of certain cross currency swaps at VTR prior to the disposition of the Chile JV Entities and (ii) $61 million of net borrowings of debt, which include the impact of $48 million of cash used to extinguish debt at VTR.
The details of our realized and unrealized gains on derivative instruments, net, are as follows: Year ended December 31, 2022 2021 in millions Cross-currency and interest rate derivative contracts (a) $ 404.3 $ 565.4 Foreign currency forward contracts (13.5) 25.8 Weather Derivatives (b) (31.4) (27.1) Total $ 359.4 $ 564.1 (a) The gains during 2022 and 2021 are primarily attributable to the net effect of (i) changes in FX rates, predominantly due to changes in the value of the Chilean peso, prior to the formation of the Chile JV, relative to the U.S. dollar, and (ii) changes in interest rates.
The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows: Year ended December 31, 2023 2022 in millions Interest rate and cross-currency derivative contracts (a) $ 27.3 $ 404.3 Foreign currency forward contracts and other (b) (30.6) (13.5) Weather Derivatives (c) (30.9) (31.4) Total $ (34.2) $ 359.4 (a) The gains during 2023 and 2022 are primarily attributable to the net effect of (i) changes in interest rates and (ii) for the 2022 period, changes in FX rates predominantly due to changes in the value of the CLP relative to the U.S. dollar prior to the disposition of the Chile JV Entities.
The increase is primarily attributable to the net effect of (i) the negative impact of FX, (ii) higher weighted-average interest rates and (iii) lower average outstanding debt balances, primarily as a result of the formation of the Chile JV in October 2022. For additional information regarding our outstanding indebtedness, see note 9 to our consolidated financial statements.
The increase is primarily attributable to the net effect of (i) higher weighted-average interest rates and (ii) lower average outstanding debt balances, primarily resulting from the disposition of the Chile JV Entities in October 2022. For additional information regarding our outstanding indebtedness, see note 10 to our consolidated financial statements.
Changes in foreign currency exchange rates may have a significant impact on our operating results, as VTR, Liberty Costa Rica and certain entities within C&W have functional currencies other than the U.S. dollar.
Changes in foreign currency exchange rates may have a significant impact on our operating results, as Liberty Costa Rica and certain entities within C&W have functional currencies other than the U.S. dollar. The impacts to the various components of our results of operations that are attributable to changes in FX are highlighted below.
Chile, through our reportable segment VTR through September 30, 2022; and B. through our reportable segment C&W Networks & LatAm, (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect approximately 40 markets in that region.
B. through our reportable segment Liberty Networks, (i) enterprise services in certain other countries in Latin America and the Caribbean and (ii) wholesale services over our subsea and terrestrial fiber optic cable networks that connect approximately 40 markets in that region.
C&W Panama’s revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2022 2021 $ % in millions, except percentages Residential revenue: Residential fixed revenue: Subscription revenue $ 102.8 $ 87.9 $ 14.9 17.0 Non-subscription revenue 7.3 9.5 (2.2) (23.2) Total residential fixed revenue 110.1 97.4 12.7 13.0 Residential mobile revenue: Service revenue 218.6 176.4 42.2 23.9 Interconnect, inbound roaming, equipment sales and other 49.5 44.5 5.0 11.2 Total residential mobile revenue 268.1 220.9 47.2 21.4 Total residential revenue 378.2 318.3 59.9 18.8 B2B service revenue 264.5 249.8 14.7 5.9 Total $ 642.7 $ 568.1 $ 74.6 13.1 II-9 The details of the changes in C&W Panama’s revenue during 2022, as compared to 2021, are set forth below (in millions): Increase (decrease) in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ 13.5 ARPU (b) (3.2) Decrease in residential fixed non-subscription revenue (2.5) Total increase in residential fixed revenue 7.8 Decrease in residential mobile service revenue (c) (0.7) Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (d) (5.2) Increase in B2B revenue (e) 3.1 Total organic increase 5.0 Impact of an acquisition 69.6 Total $ 74.6 (a) The increase is primarily attributable to higher average broadband internet and video RGUs.
C&W Panama’s revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2023 2022 $ % in millions, except percentages Residential revenue: Residential fixed revenue: Subscription revenue $ 116.5 $ 102.8 $ 13.7 13.3 Non-subscription revenue 5.5 7.3 (1.8) (24.7) Total residential fixed revenue 122.0 110.1 11.9 10.8 Residential mobile revenue: Service revenue 260.6 218.6 42.0 19.2 Interconnect, inbound roaming, equipment sales and other 52.0 49.5 2.5 5.1 Total residential mobile revenue 312.6 268.1 44.5 16.6 Total residential revenue 434.6 378.2 56.4 14.9 B2B revenue 308.0 264.5 43.5 16.4 Total $ 742.6 $ 642.7 $ 99.9 15.5 The details of the changes in C&W Panama’s revenue during 2023, as compared to 2022, are set forth below (in millions): Increase (decrease) in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ 10.7 ARPU (1.7) Decrease in residential fixed non-subscription revenue (2.1) Total increase in residential fixed revenue 6.9 Decrease in residential mobile service revenue (b) (1.1) Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (c) (7.4) Increase in B2B revenue (d) 31.9 Total organic increase 30.3 Impact of an acquisition 69.6 Total $ 99.9 (a) The increase is primarily due to higher average broadband internet and video RGUs.
C&W Caribbean’s revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2022 2021 $ % in millions, except percentages Residential revenue: Residential fixed revenue: Subscription revenue $ 484.3 $ 473.4 $ 10.9 2.3 Non-subscription revenue 32.6 34.6 (2.0) (5.8) Total residential fixed revenue 516.9 508.0 8.9 1.8 Residential mobile revenue: Service revenue 314.5 300.2 14.3 4.8 Interconnect, inbound roaming, equipment sales and other 67.9 63.9 4.0 6.3 Total residential mobile revenue 382.4 364.1 18.3 5.0 Total residential revenue 899.3 872.1 27.2 3.1 B2B revenue 537.5 517.8 19.7 3.8 Total $ 1,436.8 $ 1,389.9 $ 46.9 3.4 II-8 The details of the changes in C&W Caribbean’s revenue during 2022, as compared to 2021, are set forth below (in millions): Increase (decrease) in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ 16.9 ARPU (b) (3.6) Decrease in residential fixed non-subscription revenue (1.7) Total increase in residential fixed revenue 11.6 Increase in residential mobile service revenue (c) 16.2 Increase in residential mobile interconnect, inbound roaming, equipment sales and other (d) 4.0 Increase in B2B revenue (e) 23.3 Total organic increase 55.1 Impact of FX (8.2) Total $ 46.9 (a) The increases are primarily attributable to higher average broadband internet RGUs.
C&W Caribbean’s revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2023 2022 $ % in millions, except percentages Residential revenue: Residential fixed revenue: Subscription revenue $ 487.5 $ 484.3 $ 3.2 0.7 Non-subscription revenue 29.0 32.6 (3.6) (11.0) Total residential fixed revenue 516.5 516.9 (0.4) (0.1) Residential mobile revenue: Service revenue 330.3 314.5 15.8 5.0 Interconnect, inbound roaming, equipment sales and other 78.8 67.9 10.9 16.1 Total residential mobile revenue 409.1 382.4 26.7 7.0 Total residential revenue 925.6 899.3 26.3 2.9 B2B revenue 511.4 537.5 (26.1) (4.9) Total $ 1,437.0 $ 1,436.8 $ 0.2 — The details of the changes in C&W Caribbean’s revenue during 2023, as compared to 2022, are set forth below (in millions): Increase (decrease) in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ 4.1 ARPU (b) (0.9) Decrease in residential fixed non-subscription revenue (c) (3.7) Total decrease in residential fixed revenue (0.5) Increase in residential mobile service revenue (d) 16.0 Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) 10.9 Decrease in B2B revenue (f) (26.1) Total organic increase 0.3 Impact of FX (0.1) Total $ 0.2 (a) The increase is primarily due to higher average broadband internet RGUs partially offset by lower average video RGUs.
Our determination of the discount rate is based on a weighted average cost of capital approach, which uses a market participant’s cost of equity and after-tax cost of debt and reflects certain risks inherent in the future cash flows. During 2022 and 2021, we recorded $555 million and $605 million, respectively, of goodwill impairments related to C&W Caribbean.
Our determination of the discount rate is based on a weighted average cost of capital approach, which uses a market participant’s cost of equity and after-tax cost of debt and reflects certain risks inherent in the future cash flows. We did not record goodwill impairments during 2023.
Our 2022 and 2021 consolidated statements of cash flows are summarized as follows: Year ended December 31, 2022 2021 Change in millions Net cash provided by operating activities $ 868.8 $ 1,016.2 $ (147.4) Net cash used by investing activities (1,122.6) (1,268.6) 146.0 Net cash provided (used) by financing activities (29.2) 426.6 (455.8) Effect of exchange rate changes on cash, cash equivalents and restricted cash (2.3) (12.5) 10.2 Net increase (decrease) in cash, cash equivalents and restricted cash $ (285.3) $ 161.7 $ (447.0) Operating Activities.
Our 2023 and 2022 consolidated statements of cash flows are summarized as follows: Year ended December 31, 2023 2022 Change in millions Net cash provided by operating activities $ 897.0 $ 868.8 $ 28.2 Net cash used by investing activities (615.8) (1,122.6) 506.8 Net cash used by financing activities (62.4) (29.2) (33.2) Effect of exchange rate changes on cash, cash equivalents and restricted cash (7.9) (2.3) (5.6) Net decrease in cash, cash equivalents and restricted cash $ 210.9 $ (285.3) $ 496.2 Operating Activities.
II-24 Cash and cash equivalents The details of the U.S. dollar equivalent balances of our cash and cash equivalents at December 31, 2022 are set forth in the following table (in millions): Cash and cash equivalents held by: Liberty Latin America and unrestricted subsidiaries: Liberty Latin America (a) $ 23.5 Unrestricted subsidiaries (b) 133.0 Total Liberty Latin America and unrestricted subsidiaries 156.5 Borrowing groups (c): C&W (d) 536.2 Liberty Puerto Rico 72.3 Liberty Costa Rica 16.0 Total borrowing groups 624.5 Total cash and cash equivalents $ 781.0 (a) Represents the amount held by Liberty Latin America on a standalone basis.
Cash and cash equivalents The details of the U.S. dollar equivalent balances of our cash and cash equivalents at December 31, 2023 are set forth in the following table (in millions): Cash and cash equivalents held by: Liberty Latin America and unrestricted subsidiaries: Liberty Latin America (a) $ 27.9 Unrestricted subsidiaries (b) 72.4 Total Liberty Latin America and unrestricted subsidiaries 100.3 Borrowing groups (c): C&W (d) 737.9 Liberty Puerto Rico 119.9 Liberty Costa Rica 30.5 Total borrowing groups 888.3 Total cash and cash equivalents $ 988.6 (a) Represents the amount held by Liberty Latin America on a standalone basis.
In the following discussion, we quantify the estimated impacts on the operating results of the periods under comparison that are attributable to acquisitions and disposals.
As we use the term, “organic” changes exclude FX and the impacts of acquisitions and disposals, each as further discussed below. In the following discussion, we quantify the estimated impacts on the operating results of the periods under comparison that are attributable to acquisitions and disposals.
(c) The decrease is primarily due to the net effect of (i) lower ARPU from prepaid mobile services, mainly attributable to lower recharging activity, and (ii) higher average numbers of postpaid mobile subscribers. (d) The decrease is primarily attributable to lower interconnect revenue due to lower call volume.
(b) The decrease is primarily due to the net effect of (i) lower average numbers of prepaid mobile subscribers, (ii) higher ARPU from prepaid mobile services, mainly attributable to higher recharges per customer, and (iii) higher average numbers of postpaid mobile subscribers.
Liberty Puerto Rico’s revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2022 2021 $ % in millions, except percentages Residential fixed revenue: Subscription revenue $ 457.3 $ 438.2 $ 19.1 4.4 Non-subscription revenue 22.1 19.3 2.8 14.5 Total residential fixed revenue 479.4 457.5 21.9 4.8 Residential mobile revenue: Service revenue 448.0 480.8 (32.8) (6.8) Interconnect, inbound roaming, equipment sales and other 268.4 253.5 14.9 5.9 Total residential mobile revenue 716.4 734.3 (17.9) (2.4) Total residential revenue 1,195.8 1,191.8 4.0 0.3 B2B revenue 220.6 220.4 0.2 0.1 Other revenue 53.7 37.5 16.2 43.2 Total $ 1,470.1 $ 1,449.7 $ 20.4 1.4 The details of the changes in Liberty Puerto Rico’s revenue during 2022, as compared to 2021, are set forth below (in millions): Increase (decrease) in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ 23.3 ARPU (b) (13.9) Increase in residential fixed non-subscription revenue 0.6 Total increase in residential fixed revenue 10.0 Decrease in residential mobile service revenue (c) (32.8) Increase in residential mobile interconnect, inbound roaming, equipment sales and other (d) 14.9 Increase in B2B revenue (e) 0.2 Increase in other revenue 3.6 Total organic decrease (4.1) Impact of an acquisition (f) 24.5 Total $ 20.4 (a) The increase is primarily attributable to higher average broadband internet RGUs.
Liberty Puerto Rico’s revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2023 2022 $ % in millions, except percentages Residential fixed revenue: Subscription revenue $ 478.7 $ 457.3 $ 21.4 4.7 Non-subscription revenue 25.5 22.1 3.4 15.4 Total residential fixed revenue 504.2 479.4 24.8 5.2 Residential mobile revenue: Service revenue 398.7 441.5 (42.8) (9.7) Interconnect, inbound roaming, equipment sales and other 250.0 268.4 (18.4) (6.9) Total residential mobile revenue 648.7 709.9 (61.2) (8.6) Total residential revenue 1,152.9 1,189.3 (36.4) (3.1) B2B revenue 224.3 220.6 3.7 1.7 Other revenue 40.5 53.7 (13.2) (24.6) Total $ 1,417.7 $ 1,463.6 $ (45.9) (3.1) II-11 The details of the changes in Liberty Puerto Rico’s revenue during 2023, as compared to 2022, are set forth below (in millions): Increase in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ 16.0 ARPU (b) 5.4 Increase in residential fixed non-subscription revenue (c) 3.4 Total increase in residential fixed revenue 24.8 Decrease in residential mobile service revenue (d) (42.8) Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) (18.4) Increase in B2B revenue (f) 3.7 Decrease in other revenue (g) (13.2) Total $ (45.9) (a) The increase is primarily attributable to higher average broadband internet RGUs.
Year ended December 31, Increase Increase (decrease) from: 2022 2021 FX Organic in millions Interconnect $ 45.6 $ 45.4 $ 0.2 $ (0.8) $ 1.0 Equipment and other 14.4 10.3 4.1 (1.0) 5.1 Total programming and other direct costs of services $ 60.0 $ 55.7 $ 4.3 $ (1.8) $ 6.1 • Equipment and other: The organic increase is primarily due to lower amounts of capitalizable costs associated with licenses, as part of a migration into contracts with shorter terms and more cloud-based arrangements.
Year ended December 31, Increase (decrease) Increase (decrease) from: 2023 2022 FX Organic in millions Interconnect $ 49.3 $ 45.6 $ 3.7 $ (0.1) $ 3.8 Equipment 0.6 0.7 (0.1) — (0.1) Other 18.8 13.7 5.1 (0.1) 5.2 Total programming and other direct costs of services $ 68.7 $ 60.0 $ 8.7 $ (0.2) $ 8.9 • Interconnect: The organic increase is primarily due to (i) higher inter-segment costs and (ii) higher backhaul costs associated with increases in connectivity revenue. • Other: The organic increase is primarily due to (i) lower amounts of capitalizable costs associated with licenses, as part of a migration into contracts with shorter terms and more cloud-based arrangements, (ii) higher costs associated with sales-type leases on CPE installed on long-term customer solutions and (iii) increases in costs associated with software licenses.
For additional information concerning our losses on debt modification and extinguishment, see note 9 to our consolidated financial statements. Gain on Chile JV Transaction In connection with the Chile JV Transaction, we recognized a pre-tax gain during 2022 of $169 million. For additional information, see note 8 to our consolidated financial statements.
Gain on Chile JV Transaction In connection with the Chile JV Transaction, we recognized a pre-tax gain during 2022 of $169 million. For additional information, see note 6 to our consolidated financial statements. II-22 Other income or expense, net We recognized other expense, net, of $11 million and $28 million during 2023 and 2022, respectively.
During the year ended December 31, 2022 and 2021, our property and equipment additions represented 17.0% and 17.8% of revenue, respectively. We expect the percentage of revenue represented by our aggregate 2023 property and equipment additions to be approximately 16%.
During the year ended December 31, 2023 and 2022, our property and equipment additions represented 16.2% and 17.0% of revenue, respectively. Financing Activities.
For additional information concerning our derivative instruments, see notes 5 and 6 to our consolidated financial statements and Item 7A. Qualitative and Quantitative Disclosures about Market Risk below.
(c) Amounts represent the amortization of premiums associated with our Weather Derivatives. For additional information concerning our derivative instruments, see notes 4 and 7 to our consolidated financial statements and Item 7A. Qualitative and Quantitative Disclosures about Market Risk below.
II-27 A reconciliation of our property and equipment additions to our capital expenditures, net, as reported in our consolidated statements of cash flows, is set forth below: Year ended December 31, 2022 2021 in millions Property and equipment additions $ 816.3 $ 855.9 Assets acquired under capital-related vendor financing arrangements (161.1) (100.5) Changes in current liabilities related to capital expenditures and other 4.9 (19.1) Capital expenditures, net $ 660.1 $ 736.3 The decrease in our property and equipment additions during the year ended December 31, 2022, as compared to 2021, is primarily due to decreases in CPE-related additions and product and enabler additions which were partially offset by baseline additions.
A reconciliation of our property and equipment additions to our capital expenditures, net, as reported in our consolidated statements of cash flows, is set forth below: Year ended December 31, 2023 2022 in millions Property and equipment additions $ 730.9 $ 816.3 Assets acquired under capital-related vendor financing arrangements (143.8) (161.1) Changes in current liabilities related to capital expenditures and other (2.1) 4.9 Capital expenditures, net $ 585.0 $ 660.1 The decrease in our property and equipment additions during the year ended December 31, 2023, as compared to 2022, is primarily due to the net effect of (i) a decrease associated with the disposition of the Chile JV Entities in October 2022, and (ii) an increase related to baseline additions and new build activity.
Increase (decrease) from: Year ended December 31, Increase (decrease) Acquisitions (disposition), net Organic 2022 2021 FX in millions Personnel and contract labor $ 597.7 $ 575.1 $ 22.6 $ (10.9) $ 1.4 $ 32.1 Network-related 311.4 324.2 (12.8) (11.4) 1.7 (3.1) Service-related 209.7 196.5 13.2 (4.5) 4.1 13.6 Commercial 226.0 229.4 (3.4) (8.9) 18.9 (13.4) Facility, provision, franchise and other 542.3 460.1 82.2 (5.9) 47.1 41.0 Share-based compensation expense 93.5 118.1 (24.6) (1.3) (2.0) (21.3) Total other operating costs and expenses $ 1,980.6 $ 1,903.4 $ 77.2 $ (42.9) $ 71.2 $ 48.9 For additional information regarding our share-based compensation, see Results of Operations (below Adjusted OIBDA) discussion and analysis below.
Increase (decrease) from: Year ended December 31, Increase (decrease) An acquisition A disposition Organic 2023 2022 FX in millions Personnel and contract labor $ 557.6 $ 597.7 $ (40.1) $ 4.7 $ 6.0 $ (41.8) $ (9.0) Network-related 259.0 311.4 (52.4) 5.8 9.0 (55.7) (11.5) Service-related 227.6 210.8 16.8 4.0 1.4 (24.0) 35.4 Commercial 181.1 226.0 (44.9) 9.1 9.8 (52.2) (11.6) Facility, provision, franchise and other 563.8 542.3 21.5 11.0 24.0 (22.7) 9.2 Share-based compensation expense 88.7 93.5 (4.8) 0.3 — (7.6) 2.5 Total other operating costs and expenses $ 1,877.8 $ 1,981.7 $ (103.9) $ 34.9 $ 50.2 $ (204.0) $ 15.0 For additional information regarding our share-based compensation, see Results of Operations (below Adjusted OIBDA) discussion and analysis below.
The details of our foreign currency transaction losses, net, are as follows: Year ended December 31, 2022 2021 in millions U.S. dollar-denominated debt issued by a Chilean peso functional currency entity $ (181.1) $ (249.3) Intercompany payables and receivables denominated in a currency other than the entity’s functional currency (7.2) (48.4) Other (a) (6.0) (21.9) Total $ (194.3) $ (319.6) (a) Primarily includes (i) third-party receivables and payables denominated in a currency other than an entity’s functional currency, (ii) U.S. dollar-denominated debt issued by a CRC functional currency entity and (iii) cash denominated in a currency other than an entity’s functional currency.
The details of our foreign currency transaction gains (losses), net, are as follows: Year ended December 31, 2023 2022 in millions U.S. dollar-denominated debt issued by non-U.S.dollar functional currency entities (a) $ 54.4 $ (158.0) Intercompany payables and receivables denominated in a currency other than the entity’s functional currency 7.8 (7.2) Other (b) 8.1 (29.1) Total $ 70.3 $ (194.3) (a) The net gain during 2023 is primarily related to a CRC functional currency entity.
(c) The decrease is primarily due to (i) lower ARPU from mobile services, primarily resulting from higher contract asset amortization driven by increases in handset sales and subsidy levels, and (ii) a decline in the average number of prepaid mobile subscribers. (d) The increase is primarily due to higher volumes of handset sales.
(d) The decrease is primarily due to (i) lower ARPU from mobile services, primarily resulting from (a) a higher number of low-cost and discounted plans and (b) higher contract asset amortization, and (ii) a lower average number of mobile subscribers.
Beginning in October, we have accounted for our 50% interest in the Chile JV as an equity method investment. Strategy and Management Focus From a strategic perspective, we are seeking to build or acquire broadband communications and mobile businesses that have strong prospects for future growth.
As such, our consolidated statement of operations and cash flows for 2022 include VTR through the closing of the formation of the Chile JV. Strategy and Management Focus From a strategic perspective, we are seeking to build or acquire broadband communications and mobile businesses that have strong prospects for future growth.
Year ended December 31, 2022 2021 in millions Operating income $ 94.1 $ 67.3 Share-based compensation expense 93.5 118.1 Depreciation and amortization 910.7 964.7 Impairment, restructuring and other operating items, net 619.2 665.0 Consolidated Adjusted OIBDA $ 1,717.5 $ 1,815.1 II-6 The following table sets forth organic and non-organic changes in Adjusted OIBDA for the period indicated: C&W Caribbean C&W Panama C&W Networks & LatAm Liberty Puerto Rico Liberty Costa Rica VTR Corporate Intersegment eliminations Consolidated in millions Adjusted OIBDA for the twelve months ending: December 31, 2021 $ 482.9 $ 200.1 $ 264.3 $ 580.9 $ 80.2 $ 259.6 $ (52.9) $ — $ 1,815.1 Organic changes related to: Revenue 55.1 5.0 28.0 (4.1) 17.5 (89.7) 0.6 (7.0) 5.4 Programming and other direct costs (8.1) (2.8) (6.1) (19.6) (0.9) 15.0 — 6.1 (16.4) Other operating costs and expenses 8.0 (15.1) (7.8) (33.9) (7.5) 4.4 (19.2) 0.9 (70.2) Non-organic increases (decreases): FX (2.7) — (2.1) — (1.6) (18.4) — — (24.8) Acquisitions/disposition, net — 1.6 — 15.1 47.0 (55.3) — — 8.4 December 31, 2022 $ 535.2 $ 188.8 $ 276.3 $ 538.4 $ 134.7 $ 115.6 $ (71.5) $ — $ 1,717.5 Adjusted OIBDA Margin The following table sets forth the Adjusted OIBDA margin (Adjusted OIBDA divided by revenue) of each of our reportable segments: Year ended December 31, 2022 2021 % C&W Caribbean 37.2 34.7 C&W Panama 29.4 35.2 C&W Networks & LatAm 61.3 61.2 Liberty Puerto Rico 36.6 40.1 Liberty Costa Rica 30.5 31.0 VTR (a) 25.7 33.0 (a) During October 2022, we contributed the Chile JV Entities into the Chile JV.
Year ended December 31, 2023 2022 in millions Operating income $ 517.7 $ 86.5 Share-based compensation expense 88.7 93.5 Depreciation and amortization 1,008.3 910.7 Impairment, restructuring and other operating items, net 86.9 619.2 Consolidated Adjusted OIBDA $ 1,701.6 $ 1,709.9 The following table sets forth organic and non-organic changes in Adjusted OIBDA for the period indicated: C&W Caribbean C&W Panama Liberty Networks Liberty Puerto Rico Liberty Costa Rica VTR Corporate Intersegment eliminations Consolidated in millions Adjusted OIBDA for the twelve months ending: December 31, 2022 $ 535.2 $ 188.8 $ 276.3 $ 530.8 $ 134.7 $ 115.6 $ (71.5) $ — $ 1,709.9 Organic changes related to: Revenue 0.3 30.3 3.6 (45.9) 21.2 — 1.3 (11.4) (0.6) Programming and other direct costs 60.8 (27.8) (8.9) 55.0 4.9 — — 3.5 87.5 Other operating costs and expenses 0.6 34.8 (9.0) (54.4) 10.5 — (2.9) 7.9 (12.5) Non-organic increases (decreases): FX — — (0.5) — 31.8 — — — 31.3 Acquisition/disposition, net — 1.6 — — — (115.6) — — (114.0) December 31, 2023 $ 596.9 $ 227.7 $ 261.5 $ 485.5 $ 203.1 $ — $ (73.1) $ — $ 1,701.6 II-7 Adjusted OIBDA Margin The following table sets forth the Adjusted OIBDA Margin of each of our reportable segments: Year ended December 31, 2023 2022 % C&W Caribbean 41.5 37.2 C&W Panama 30.7 29.4 Liberty Networks 57.7 61.3 Liberty Puerto Rico 34.2 36.3 Liberty Costa Rica 37.1 30.5 Adjusted OIBDA margin is impacted by organic changes in revenue, programming and other direct costs of services and other operating costs and expenses.
Increase (decrease) from: Year ended December 31, Increase An acquisition 2022 2021 Organic in millions Programming and copyright $ 18.5 $ 14.9 $ 3.6 $ 1.0 $ 2.6 Interconnect 63.8 60.3 3.5 7.6 (4.1) Equipment and other 125.1 111.6 13.5 9.2 4.3 Total programming and other direct costs of services $ 207.4 $ 186.8 $ 20.6 $ 17.8 $ 2.8 • Programming and copyright: The organic increase is primarily due to RGU growth.
Increase (decrease) from: Year ended December 31, Increase An acquisition 2023 2022 Organic in millions Programming and copyright $ 21.4 $ 18.5 $ 2.9 $ 1.0 $ 1.9 Interconnect 72.2 63.8 8.4 7.6 0.8 Equipment 41.6 38.2 3.4 8.6 (5.2) Other 117.8 86.9 30.9 0.6 30.3 Total programming and other direct costs of services $ 253.0 $ 207.4 $ 45.6 $ 17.8 $ 27.8 • Equipment: The organic decrease is primarily due to lower volumes of mobile handsets. • Other: The organic increase is primarily due to higher costs associated with certain government-related projects.

… 94 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

24 edited+1 added−6 removed25 unchanged
Biggest changeII-32 The relationship between the (i) CLP, JMD and CRC and (ii) the U.S. dollar, which is our reporting currency, is shown below, per one U.S. dollar: As of December 31, 2022 2021 Spot rates: CLP N/A 852.00 CRC 591.80 642.21 JMD 151.92 153.96 Year ended December 31, 2022 2021 2020 Average rates: CLP (a) 859.78 759.90 791.70 CRC 647.44 622.03 585.79 JMD 153.42 150.60 142.08 (a) The CLP rate of 859.78 for 2022 represents the average rate for the period prior to the formation of the Chile JV.
Biggest changeThe relationship between the (i) CRC and JMD and (ii) the U.S. dollar, which is our reporting currency, is shown below, per one U.S. dollar: As of December 31, 2023 2022 Spot rates: CRC 523.04 591.80 JMD 154.35 151.92 Year ended December 31, 2023 2022 Average rates: CRC 543.74 647.44 JMD 153.51 153.42 Inflation and Foreign Investment Risk We are subject to inflationary pressures with respect to labor, programming and other costs.
Our policy is generally to provide for an economic hedge against foreign currency exchange rate movements, whenever possible and when cost effective to do so, by using derivative instruments to synthetically convert unmatched debt into the applicable underlying currency. For additional information concerning the terms of our derivative instruments, see note 5 to our consolidated financial statements.
Our policy is generally to provide for an economic hedge against foreign currency exchange rate movements, whenever possible and when cost effective to do so, by using derivative instruments to synthetically convert unmatched debt into the applicable underlying currency. For additional information concerning the terms of our derivative instruments, see note 7 to our consolidated financial statements.
Assuming no change in the amount outstanding, and without giving effect to any interest rate derivative contracts, deferred financing costs, original issue premiums or discounts and commitment fees, a hypothetical 50 basis point (0.50%) increase (decrease) in our weighted average variable interest rate would increase (decrease) our annual interest expense and cash outflows by $17 million.
Assuming no change in the amount outstanding, and without giving effect to any interest rate derivative contracts, deferred financing costs, original issue premiums or discounts and commitment fees, a hypothetical 50 basis point (0.50%) increase (decrease) in our weighted average variable interest rate would increase (decrease) our annual interest expense and cash outflows by $15 million.
For additional information concerning our foreign currency forward contracts, see note 5 to our consolidated financial statements. We also are exposed to unfavorable and potentially volatile fluctuations of the U.S. dollar (our reporting currency) against the currencies of our operating subsidiaries when their respective financial statements are translated into U.S. dollars for inclusion in our consolidated financial statements.
For additional information concerning our foreign currency forward contracts, see note 7 to our consolidated financial statements. We also are exposed to unfavorable and potentially volatile fluctuations of the U.S. dollar (our reporting currency) against the currencies of our operating subsidiaries when their respective financial statements are translated into U.S. dollars for inclusion in our consolidated financial statements.
Liberty Puerto Rico Interest Rate Derivative Contracts Holding all other factors constant, at December 31, 2022, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the Liberty Puerto Rico interest rate derivative contracts by approximately $28 million ($26 million).
Liberty Puerto Rico Interest Rate Derivative Contracts Holding all other factors constant, at December 31, 2023, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the Liberty Puerto Rico interest rate derivative contracts by approximately $28 million ($26 million).
Changes in exchange rates with respect to amounts recorded in our consolidated balance sheet related to these items will result in unrealized (based upon period-end exchange rates) or realized foreign currency transaction gains and losses upon settlement of the transactions.
Changes in exchange rates with respect to amounts recorded in our consolidated balance sheet related to these items will result in (i) unrealized foreign currency transaction gains and losses based upon period-end exchange rates or (ii) realized foreign currency transaction gains and losses upon settlement of the transactions.
Projected Cash Flows Associated with Derivative Instruments The following table provides information regarding the projected cash flows associated with our derivative instruments. The U.S. dollar equivalents presented below are based on interest rates and exchange rates that were in effect as of December 31, 2022.
Projected Cash Flows Associated with Derivative Instruments The following table provides information regarding the projected cash flows associated with our derivative instruments. The U.S. dollar equivalents presented below are based on interest rates and exchange rates that were in effect as of December 31, 2023.
For additional information concerning the impacts of these interest rate derivative instruments, see note 5 to our consolidated financial statements. Weighted Average Variable Interest Rate.
For additional information concerning the impacts of these interest rate derivative instruments, see note 7 to our consolidated financial statements. Weighted Average Variable Interest Rate.
As discussed above and in note 5 to our consolidated financial statements, we use interest rate derivative contracts to manage our exposure to increases in variable interest rates.
As discussed above and in note 7 to our consolidated financial statements, we use interest rate derivative contracts to manage our exposure to increases in variable interest rates.
In this regard, we have entered into foreign currency forward contracts to hedge certain of these risks. Certain non-functional currency risks related to our programming and other direct costs of services and other operating costs and expenses and property and equipment additions were not hedged as of December 31, 2022.
In this regard, we have entered into foreign currency forward contracts to hedge certain of these risks. Certain non-functional currency risks related to our programming and other direct costs of services, other operating costs and II-30 expenses and property and equipment additions were not hedged as of December 31, 2023.
These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods. For additional information regarding our derivative instruments, including our counterparty credit risk, see note 5 to our consolidated financial statements.
These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments or receipts required in future periods. For additional information regarding our derivative instruments, including our counterparty credit risk, see note 7 to our consolidated financial statements.
We use interest rate derivative contracts to exchange, at specified intervals, the difference between fixed and variable interest rates calculated by reference to an agreed-upon notional principal amount. At December 31, 2022, we paid a fixed or capped rate of interest on 95% of our total debt, which includes the impact of our interest rate derivative contracts.
We use interest rate derivative contracts to exchange, at specified intervals, the difference between fixed and variable interest rates calculated by reference to an agreed-upon notional principal amount. At December 31, 2023, we paid a fixed or capped rate of II-31 interest on 96% of our total debt, which includes the impact of our interest rate derivative contracts.
To date, neither the access to nor the value of our cash and cash equivalent balances have been significantly adversely impacted by liquidity problems of financial institutions. At December 31, 2022, our exposure to counterparty credit risk included (i) cash and cash equivalent balances of $781 million and (ii) aggregate undrawn credit facilities of $899 million.
To date, neither the access to nor the value of our cash and cash equivalent balances have been significantly adversely impacted by liquidity problems of financial institutions. At December 31, 2023, our exposure to counterparty credit risk included (i) cash and cash equivalent balances of $989 million and (ii) aggregate undrawn credit facilities of $869 million.
The final maturity dates of our various portfolios of interest rate derivative instruments generally match the respective maturities of the underlying II-33 variable-rate debt.
The final maturity dates of our various portfolios of interest rate derivative instruments match the respective maturities of the underlying variable-rate debt.
At December 31, 2022, the outstanding principal amount of our variable-rate indebtedness aggregated $3,362 million, and the weighted average interest rate (including margin) on such variable-rate indebtedness was approximately 7.4%, excluding the effects of interest rate derivative contracts, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.
At December 31, 2023, the outstanding principal amount of our variable-rate indebtedness aggregated $3,049 million, and the weighted average interest rate (including margin) on such variable-rate indebtedness was approximately 8.2%, excluding the effects of interest rate derivative contracts, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.
II-34 C&W Interest Rate Derivative Contracts Holding all other factors constant, at December 31, 2022, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the C&W interest rate derivative contracts by approximately $94 million ($95 million).
II-32 C&W Interest Rate Derivative Contracts Holding all other factors constant, at December 31, 2023, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the C&W interest rate derivative contracts by approximately $87 million ($87 million).
(b) Includes amounts related to our foreign currency forward contracts. II-35
(b) Includes amounts related to our foreign currency forward contracts.
Interest Rate Risks We are exposed to changes in interest rates primarily as a result of our borrowing activities, which include fixed-rate and variable-rate borrowings by our borrowing groups. Our primary exposure to variable-rate debt is through the LIBOR-indexed debt of C&W, Liberty Puerto Rico and Liberty Costa Rica. In July 2017, the U.K.
Interest Rate Risks We are exposed to changes in interest rates primarily as a result of our borrowing activities, which include fixed-rate and variable-rate borrowings by our borrowing groups. Our primary exposure to variable-rate debt is through the SOFR-indexed debt of C&W and Liberty Puerto Rico.
For additional information, see notes 5 and 6 to our consolidated financial statements.
For additional information, see notes 4 and 7 to our consolidated financial statements.
In general, we seek to enter into derivative instruments to protect against increases in the interest rates on our variable-rate debt. Accordingly, we have entered into various derivative transactions to reduce exposure to increases in interest rates.
For additional information concerning the details of our debt see note 10 to our consolidated financial statements. In general, we seek to enter into derivative instruments to protect against increases in the interest rates on our variable-rate debt. Accordingly, we have entered into various derivative transactions to reduce exposure to increases in interest rates.
Therefore, costs could rise faster than associated revenue, thereby resulting in a negative impact on our operating results, cash flows and liquidity. The economic environment in the respective countries in which we operate is a function of government, economic, fiscal and monetary policies and various other factors beyond our control that could lead to inflation.
The economic environment in the respective countries in which we operate is a function of government, economic, fiscal and monetary policies and various other factors beyond our control that could lead to inflation.
Payments (receipts) due during: Total 2023 2024 2025 2026 2027 Thereafter in millions Projected derivative cash payments (receipts), net: Interest-related (a) $ (36.8) $ (64.3) $ (62.6) $ (62.6) $ (62.6) $ (53.4) $ (342.3) Other (b) 12.2 — — — — — 12.2 Total $ (24.6) $ (64.3) $ (62.6) $ (62.6) $ (62.6) $ (53.4) $ (330.1) (a) Includes the interest-related cash flows of our interest rate derivative contracts.
Payments (receipts) due during: Total 2024 2025 2026 2027 2028 Thereafter in millions Projected derivative cash payments (receipts), net: Interest-related (a) $ (102.9) $ (65.4) $ (104.5) $ (104.5) $ (63.2) $ (24.7) $ (465.2) Other (b) 17.6 4.5 — — — — 22.1 Total $ (85.3) $ (60.9) $ (104.5) $ (104.5) $ (63.2) $ (24.7) $ (443.1) (a) Includes the interest-related cash flows of our interest rate derivative contracts.
Our primary exposure to FX risk during 2022 was to the CLP as 12% of our reported revenue for the period prior to the formation of the Chile JV in October 2022 was derived from VTR, whose functional currency was the CLP.
Our primary exposures to FX risk during 2023 were to (i) the CRC as 12% of our reported revenue for the period was derived from Liberty Costa Rica, whose functional currency is the CRC and (ii) the JMD as 9.0% of our reported revenue for the period was derived from C&W Jamaica, whose functional currency is the JMD.
Inflation and Foreign Investment Risk We are subject to inflationary pressures with respect to labor, programming and other costs. While we attempt to increase our revenue to offset increases in costs, there is no assurance that we will be able to do so.
While we attempt to increase our revenue to offset increases in costs, there is no assurance that we will be able to do so. Therefore, costs could rise faster than associated revenue, thereby resulting in a negative impact on our operating results, cash flows and liquidity.
Removed
Financial Conduct Authority (the authority that regulates LIBOR) announced that its intent to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
Added
During May 2023, the terms of the agreements underlying certain of our debt instruments at C&W and Liberty Puerto Rico were amended, which resulted in (i) the replacement of LIBOR-based benchmark rates with Adjusted Term SOFR for interest periods commencing after June 30, 2023, (ii) the modification of the provisions for determining an alternative rate of interest upon the occurrence of certain events relating to the availability of interest rate benchmarks and (iii) certain conforming changes.
Removed
On November 30, 2020, the administrator of U.S. dollar LIBOR announced a delay in the phase out of a majority of the U.S. dollar LIBOR publications until June 30, 2023, with the remainder of LIBOR publications phased out at the end of 2021.
Removed
Currently, it is not possible to predict the exact transitional arrangements, or associated timelines, for calculating applicable reference rates that may be made in the U.S., or elsewhere given that a number of outcomes are possible, including the cessation of the publication of one or more reference rates.
Removed
Our loan documents contain customary provisions that contemplate alternative calculations of the applicable base rate once LIBOR is no longer available. Currently, we do not expect that these alternative calculations will be materially different from what would have been calculated under LIBOR.
Removed
Additionally, no mandatory prepayment or redemption provisions would be triggered under our loan agreements in the event that the LIBOR rate is not available. Also, it is possible that a new reference rate that applies to our LIBOR-indexed debt could be different than a new reference rate that applies to our LIBOR-indexed derivative instruments.
Removed
We anticipate managing any increased variable-rate exposure caused by this possible difference through modifications to our debt and/or derivative instrument agreements, however, future market conditions may not allow immediate implementation of desired modifications, and we may incur significant associated costs.

Other LILAK 10-K year-over-year comparisons