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What changed in Liberty Latin America Ltd.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Liberty Latin America Ltd.'s 2023 and 2024 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 2024 report.

+425 added−422 removedSource: 10-K (2025-02-19) vs 10-K (2024-02-22)

Top changes in Liberty Latin America Ltd.'s 2024 10-K

425 paragraphs added · 422 removed · 345 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

119 edited+32 added−43 removed215 unchanged
Biggest changeWithin the last three years, we have completed the following transactions: • during November 2023, we entered into an agreement with Phoenix Tower International to monetize approximately 1,300 mobile tower sites across Panama, Jamaica, The Bahamas, Puerto Rico, Barbados, and the British Virgin Islands. As of December 31, 2023, we completed these transactions across most markets.
Biggest changeDuring August 2024, we also entered into an agreement with the noncontrolling interest owner of Liberty Costa Rica where we agreed to acquire on January 30, 2026 shares representing 8.5% of the equity of Liberty Costa Rica for approximately $83 million, comprising CRC 22 billion ($43 million) and $40 million, with 62.5% of the purchase price due upon closing and the remaining 37.5% due on January 29, 2027. • during November 2023, we entered into an agreement with Phoenix Tower International to monetize approximately 1,300 mobile tower sites across Panama, Jamaica, The Bahamas, Puerto Rico, Barbados, and the British Virgin Islands.
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.
Where available, we expect our mobile services will allow us to provide an extensive converged product offering with video, internet I-9 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.
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.
Additionally, we produce original series and I-15 stories. Our latest video consumer equipment that is distributed to a growing number of markets, including Puerto Rico, Costa 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.
In addition, the ECTEL , the regulatory body for telecommunications in five Eastern Caribbean States (Commonwealth of Dominica, Grenada, St. Kitts & Nevis, St. Lucia and St. Vincent and the Grenadines), has adopted an Electronic Communications Bill that may have a material adverse impact on C&W Caribbean’s operations in the ECTEL member states.
In addition, ECTEL , the regulatory body for telecommunications in five Eastern Caribbean States (Commonwealth of Dominica, Grenada, St. Kitts & Nevis, St. Lucia and St. Vincent and the Grenadines), has adopted an Electronic Communications Bill that may have a material adverse impact on C&W Caribbean’s operations in the ECTEL member states.
Jurisdictions such as The Bahamas, the Cayman Islands and Jamaica have implemented fixed and mobile LNP and ECTEL has implemented mobile LNP . Barbados launched fixed LNP and mobile LNP in January 2023. Other jurisdictions, including Antigua & Barbuda, Curacao and Turks and Caicos, have considered or begun to implement LNP .
Jurisdictions such as The Bahamas, the Cayman Islands and Jamaica have implemented fixed and mobile LNP and ECTEL has implemented mobile LNP . Barbados launched fixed LNP and mobile LNP in January 2023. Other jurisdictions, including Antigua and Barbuda, Curacao and Turks and Caicos Islands, have considered or begun to implement LNP .
The Communications Act specifies causes for the termination of licenses, including, for example, the failure to comply with license requirements and conditions or to pay fines or fees in a timely manner. Such sanctions by the TB and/or FCC can be appealed to, and reviewed by, Puerto Rican courts and U.S. federal courts.
The Communications Act specifies causes for the termination of licenses, including, for example, the failure to comply with license requirements and conditions or to pay fines or fees in a timely manner. Such sanctions by the TB and/or FCC can be appealed to, and reviewed by, Puerto Rican and U.S. federal courts.
Video Distribution Our video services compete primarily with traditional FTA broadcast television services, DTH satellite service providers and other fixed-line telecommunications carriers and broadband providers, including operations offering (i) services over HFC cable networks, (ii) DTH satellite services, (iii) internet protocol television ( IPTV ) over broadband internet connections using asymmetric DSL or VDSL or an enhancement to VDSL called “vectoring,” (iv) IPTV over FTTH networks, or (v) LTE services.
Video Distribution Our video services compete primarily with traditional FTA broadcast television services, DTH satellite service providers and other fixed-line telecommunications carriers and broadband providers, including operations offering (i) services over HFC cable networks, (ii) DTH satellite services, (iii) IPTV over broadband internet connections using asymmetric DSL or VDSL or an enhancement to VDSL called “vectoring,” (iv) IPTV over FTTH networks, or (v) LTE services.
Except for Flow Sports and Flow 1 services, that we operate, in the Caribbean, and the RUSH sports channel operated by a consolidated joint venture with the Digicel Group, we license our programming and on-demand content through distribution agreements with third-party content providers, including broadcasters, leading cable networks and major Hollywood studios.
Except for Flow Sports and Flow 1 services, that we operate, in the Caribbean, and the Rush sports channel operated by a joint venture with the Digicel Group, we license our programming and on-demand content through distribution agreements with third-party content providers, including broadcasters, leading cable networks and major Hollywood studios.
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.
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 licenses will expire in 2026, and these can be extended for an additional 10 year term.
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.
In very rare cases, spectrum previously assigned to C&W I-16 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.
We also offer various calling plans, such as unlimited network, national or international calling, unlimited off-peak calling and minute packages, including calls to fixed and mobile phones. In addition, we use our bundled offers with our video and high-speed internet services to gain mobile subscribers where possible.
We also offer various calling plans, such as unlimited network, national or international calling, unlimited off-peak calling and minute packages, including calls to fixed and mobile phones. In addition, we use our bundled offers with our high-speed internet services to gain mobile subscribers where possible.
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.
Our business services fall into four 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.
C&W Panama decided not to renew the concessions corresponding to discontinued or not provided services (facsimile retransmission service and conventional trunk systems service for public or private use), and the Concession #104 (Pay Phone Services), was renewed under special conditions imposed by the regulator. Public Telephone Service .
C&W Panama decided not to renew the concessions corresponding to discontinued or not provided services (facsimile retransmission service and conventional trunk systems service for public or private use), and the Concession #104 (Pay Phone Services), was renewed under special conditions imposed by the regulator.
(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.
(2) Percentage of total 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.
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.
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, 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-23 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.
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.
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 > 750 (2) 1,000 1,000 Mobile services: Network Technology (3) LTE / 5G LTE LTE — LTE LTE / 5G LTE / 5G 5G I-8 (1) These are the primary systems used for delivery of services in the countries indicated.
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.
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; • 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; I-2 • 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 transaction with Millicom in Costa Rica; • 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 transaction with Millicom in Costa Rica; • 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 Acquired Entities; • 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; • 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; I-3 • 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 and the impact of any impairments; • 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.
I-12 With approximately 50,000 kilometers of fiber optic cable, and an activated capacity of over 20 Tbps, Liberty Networks can carry large volumes of data traffic. Our networks also allow us to provide point-to-point, clear channel wholesale broadband capacity services, IP transit cloud-based services and local network services to telecommunications carriers, ISPs and large corporations.
I-12 With approximately 50,000 kilometers of fiber optic cable, and an activated capacity of over 30 Tbps, Liberty Networks can carry large volumes of data traffic. Our networks also allow us to provide point-to-point, clear channel wholesale broadband capacity services, IP transit cloud-based services and local network services to telecommunications carriers, ISPs and large corporations.
Generally, in these markets, C&W Caribbean operates under a government issued license or concession that enables it to own and operate its telecommunication networks, including the establishment of wireless networks and the use of spectrum. These licenses and concessions are typically non-exclusive and have renewable multi-year terms that include competitive, qualitative and rate regulation.
Generally, in these markets, C&W Caribbean operates under a government issued license or concession that enables it to own and operate its telecommunication networks, including the establishment of wireless networks and the use of spectrum. These licenses and concessions are typically non-exclusive and have renewable multi-year terms that include competitive, qualitative and rate regulations.
Virgin Islands have submitted comments regarding the draft BEAD Program action plans in Puerto Rico and USVI, respectively. Of note, in Fiscal Year 2021, Puerto Rico also allocated $400 million in state funds to the Broadband Infrastructure Fund administered by the Puerto Rico Broadband Program, to support service expansion efforts in unserved and underserved areas. Fixed-Line Telephony Services.
Virgin Islands have submitted comments regarding the draft BEAD Program action plans in Puerto Rico and USVI, respectively. Of note, in Fiscal Year 2021, Puerto Rico also allocated $400 million in state funds to the Broadband Infrastructure Fund administered by the Puerto Rico Broadband Program, to support service expansion efforts in unserved and underserved areas. I-22 Fixed-Line Telephony Services.
As an alternative to a renewal requirement, the FCC sought comment on a periodic review process in which an international section 214 authorization holders would periodically submit information demonstrating that its authorization continues to serve the public interest. I-23 Mobile Services . Liberty Mobile Puerto Rico and Liberty Mobile U.S. Virgin Islands offer mobile services in Puerto Rico and USVI.
As an alternative to a renewal requirement, the FCC sought comment on a periodic review process in which an international section 214 authorization holders would periodically submit information demonstrating that its authorization continues to serve the public interest. Mobile Services . Liberty Mobile Puerto Rico and Liberty Mobile U.S. Virgin Islands offer mobile services in Puerto Rico and USVI.
To compete effectively, we are expanding our LTE service areas and increasing our download speeds. In most of our markets, we offer our internet service through bundled offerings that include video and fixed-line telephony. We also offer a wide range of mobile products either on a prepaid or postpaid basis. • C&W Caribbean.
To compete effectively, we are expanding our LTE service areas, introducing 5G, and increasing our download speeds. In most of our markets, we offer our internet service through bundled offerings that include video and fixed-line telephony. We also offer a wide range of mobile products either on a prepaid or postpaid basis. • C&W Caribbean.
In several of our C&W Caribbean markets, we are the incumbent phone company offering broadband internet products through a variety of technologies, predominantly HFC cable and FTTH. In these markets and our other Latin American markets, our key competition for internet services is from cable and IPTV operators and mobile data service providers.
I-25 In several of our C&W Caribbean markets, we are the incumbent phone company offering broadband internet products through a variety of technologies, predominantly HFC cable and FTTH. In these markets and our other Latin American markets, our key competition for internet services is from cable and IPTV operators and mobile data service providers.
Customers who do not pay a recurring monthly fee are excluded from our mobile telephony subscriber counts after periods of inactivity ranging from 60 to 90 days, based on industry standards within the respective country. In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts.
Customers who do not pay a recurring monthly fee are excluded from our mobile telephony subscriber counts after periods of inactivity ranging from 30 to 90 days, based on industry standards within the respective country. In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts.
Our ability to attract and retain customers depends on our continued ability to acquire appealing content and services on competitive terms and to make such content available on multiple devices and outside the home. Some competitors have obtained long-term exclusive contracts for certain sports programs, which limits the opportunities for other providers to offer such programs.
Our ability to attract and retain customers depends on our continued ability to acquire appealing content and services on competitive terms and to make such content available on multiple devices and outside the home. Some competitors have I-26 obtained long-term exclusive contracts for certain sports programs, which limits the opportunities for other providers to offer such programs.
On June 8, 2021, the FCC’s Wireline Competition Bureau issued a public notice authorizing $85 million in Connect USVI funding for Broadband VI, LLC to deploy wireline networks and provide voice and broadband services to more than 46,000 locations in the U.S. Virgin Islands.
On June 8, 2021, the FCC’s Wireline Competition Bureau issued a public notice authorizing $85 million in Connect USVI funding for Broadband VI, LLC to deploy wireline networks and provide voice I-20 and broadband services to more than 46,000 locations in the U.S. Virgin Islands.
Competition We operate in an emerging region of the world, where market penetration of telecommunication services such as broadband and mobile data is lower than in more developed markets. Generally, our markets are at a relatively nascent stage of the global shift to a “data-centric” world.
I-24 Competition We operate in an emerging region of the world, where market penetration of telecommunication services such as broadband and mobile data is lower than in more developed markets. Generally, our markets are at a relatively nascent stage of the global shift to a “data-centric” world.
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.
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.
C&W Panama competes primarily with Cable Onda which is owned by Millicom and which offers video, internet and fixed-line telephony over its cable network. To compete effectively, C&W Panama invests in leading mobile and fixed networks and content. • Liberty Puerto Rico . Liberty Puerto Rico is the largest provider of fixed-line video services in Puerto Rico.
C&W Panama competes primarily with Tigo, which is owned by Millicom, and which offers video, internet and fixed-line telephony over its cable network. To compete effectively, C&W Panama invests in leading mobile and fixed networks and content. • Liberty Puerto Rico . Liberty Puerto Rico is the largest provider of fixed-line video services in Puerto Rico.
Franchises are generally granted for fixed terms of up to ten years and must be periodically renewed. Our pay television service in Puerto Rico is subject to, among other things, subscriber privacy regulations and must-carry and retransmission consent rights of broadcast television stations.
Franchises are generally granted for fixed terms of up to ten years and must be periodically renewed. I-21 Our pay television service in Puerto Rico is subject to, among other things, subscriber privacy regulations and must-carry and retransmission consent rights of broadcast television stations.
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.
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.
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.
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 1.2 million additional homes and commercial premises.
For example, we have upgraded almost all of our HFC network to DOCSIS 3.1, and with a combination of FTTH and DOCSIS 3.1, over 80% of our network is currently capable of delivering speeds of 1 Gbps or above.
For example, we have upgraded almost all of our HFC network to DOCSIS 3.1, and with a combination of FTTH and DOCSIS 3.1, over 95% of our network is currently capable of delivering speeds of 1 Gbps or above.
We offer video services in Puerto Rico, Costa Rica, and in most of C&W’s residential markets. In most markets, we are enhancing our video offerings with next generation, market-leading digital television platforms that enable our customers to control when and where they watch their programming.
We offer video services in Puerto Rico, Costa Rica, Panama and in nearly all of our C&W’s residential markets. In most markets, we are enhancing our video offerings with next generation, market-leading digital television platforms that enable our customers to control when and where they watch their programming.
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.
They can also stream a selection of channels and non-linear content on their own devices through “TV Everywhere” mobile applications such as, “Bluu” in the Caribbean, “Liberty Go” in Puerto Rico, “+movil Total” in Panama and “Liberty Hogar” in Costa Rica.
We face competition in the provision of fixed-telephony services mainly from Digicel in our Caribbean markets and Cable Bahamas Limited in The Bahamas. These companies all have competitive pricing on similar services, and the intensified level of competition we are experiencing in several of our markets has added increased pressure on the pricing of our services. • C&W Panama .
We face competition in the provision of fixed-telephony services mainly from Digicel in our Caribbean markets and Cable Bahamas Limited in The Bahamas. These companies all have competitive pricing on similar services, and the intensified level of competition we are experiencing in several of our markets has added increased pressure on the pricing of our services.
In all of our markets, we also compete with VoIP operators offering services across broadband lines and over-the-top ( OTT ) telephony providers, such as WhatsApp. In many countries, our businesses also face competition from other cable telephony providers, FTTH -based providers or other indirect access providers.
In all of our markets, we also compete with VoIP operators offering services across broadband lines and OTT telephony providers, such as WhatsApp. In many countries, our businesses also face competition from other cable telephony providers, FTTH -based providers or other indirect access providers.
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.
For a breakdown of revenue by major category, see note 18 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, 2024.
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.
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 35 Tbps , which represent approximately 25% of their potential capacity based on current deployed technology, presenting us with significant growth opportunities.
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).
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 catalogs and/or linear channels . In some cases, these AVoD services are provided free-of-charge (such as YouTube and Pluto TV).
These are: C&W Caribbean approximately 3,700 full-time employees, C&W Panama approximately 2,400 full-time employees, Liberty Networks approximately 1,000 full-time employees, Liberty Puerto Rico approximately 2,300 employees, and Liberty Costa Rica approximately 600 employees. The remaining employees are employed by our corporate entities. Women represented 41% of our global employees and 39% of our managerial positions.
These are: C&W Caribbean approximately 3,700 full-time employees, C&W Panama approximately 1,900 full-time employees, Liberty Networks approximately 1,100 full-time employees, Liberty Puerto Rico approximately 2,000 employees, and Liberty Costa Rica approximately 600 employees. The remaining employees are employed by our corporate entities. Women represented 41% of our global employees and 39% of our managerial positions.
We face competition from Millicom (through the Tigo brand) in Panama. • Liberty Puerto Rico . Liberty Puerto Rico primarily competes with Claro who is the incumbent fixed operator in Puerto Rico, and smaller fiber builders . For B2B services, Liberty Puerto Rico primarily competes with Claro, Aeronet, Neptuno and WorldNet. • Liberty Costa Rica.
I-27 • C&W Panama . We face competition from Millicom (through the Tigo brand) in Panama. • Liberty Puerto Rico . Liberty Puerto Rico primarily competes with Claro who is the incumbent fixed operator in Puerto Rico, and smaller fiber builders . For B2B services, Liberty Puerto Rico primarily competes with Claro, Aeronet, Neptuno and WorldNet. • Liberty Costa Rica.
As the incumbent telecommunications provider in many of its jurisdictions, C&W Caribbean is subject to significant regulatory oversight with respect to the provision of fixed-line and mobile telephony services.
As the incumbent telecommunications provider in many of its jurisdictions, C&W Caribbean is subject to significant regulatory oversight with respect to the provision of fixed-line services.
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.
In response to the continued growth in OTT viewing, we have launched a number of innovative video services, including Bluu in C&W Caribbean’s markets, +TV Total in C&W Panama, and Liberty Go in Puerto Rico and Liberty Go in Costa Rica.
On November 17, 2022, the FCC issued a report and order and a further notice of proposed rulemaking adopting rules that require broadband providers to display, at the point of sale, labels that disclose certain information regarding broadband prices, introductory rates, data allowances and broadband speeds.
The ECF concluded on June 30, 2024. On November 17, 2022, the FCC issued a report and order and a further notice of proposed rulemaking adopting rules that require broadband providers to display, at the point of sale, labels that disclose certain information regarding broadband prices, introductory rates, data allowances and broadband speeds.
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.
We also operate an extensive subsea and terrestrial fiber optic cable network that connect over 30 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.
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 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. Human Capital Resources Our Team . As of December 31, 2024, we employed approximately 10,000 full-time employees across our five reportable segments.
The Chile JV is owned 50:50 by Liberty Latin America and América Móvil. Beginning in October 2022, we began accounting for our 50% interest in the Chile JV as an equity method investment. As such, our consolidated statements of operations and cash flows for 2022 and 2021 include VTR through the closing of the formation of the Chile JV.
The Chile JV was initially owned 50:50 by I-1 Liberty Latin America and América Móvil. Beginning in October 2022, we began accounting for our 50% interest in the Chile JV as an equity method investment. As such, our consolidated statements of operations and cash flows for 2022 include VTR through the closing of the formation of the Chile JV.
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.
These gateway products can be self-installed and have an automatic WiFi optimization function, which selects the best possible wireless frequency. During 2024, our Network Extension programs (as defined and described below) upgraded or passed approximately 800,000 homes across Liberty Latin America.
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.
Costa Rica, through our reportable segment Liberty Costa Rica. 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 over 30 markets in that region.
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.
Licenses and concessions are in the process of being renewed in The Bahamas and Antigua and Barbuda. 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, regulation may restrict our operations and subject them to further competitive pressure, including pricing rules and restrictions, interconnect and other access obligations, and restrictions or controls on content, including content provided by third parties. Failure to comply with current or future regulation could expose our businesses to various penalties.
In addition, regulation may restrict our operations and subject them to further competitive pressure, including pricing rules and restrictions, such as interconnect and other access obligations that restrict or control content, including content provided by third parties. Failure to comply with current or future regulations could expose our businesses to various penalties.
Effective December 31, 2021, in connection with the BBVI Acquisition, Liberty Puerto Rico acquired 96% of the outstanding shares of Broadband VI, LLC for $33 million, subject to certain post-closing adjustments.
Effective December 31, 2021, Liberty Puerto Rico acquired 96% of the outstanding shares of Broadband VI, LLC for $33 million, subject to certain post-closing adjustments.
Vincent and the Grenadines in 2022, so that the bill is now currently in effect in those markets. Other ECTEL states will follow to enact the legislation in the next few years, although a specific timeline is unclear, as it is the purview of each legislature to determine the precise date on which the legislation will be introduced for deliberation.
Vincent and the Grenadines in 2022. Other ECTEL states will follow to enact the legislation in the next few years, although a specific timeline is unclear, as it is the purview of each legislature to determine the precise date on which the legislation will be introduced for deliberation.
Regulation, including conditions imposed on us by competition or other authorities as a requirement to close acquisitions or dispositions, could limit growth, revenue and the number and type of services offered and could lead to increased operating costs and property and equipment additions.
Conditions imposed on us by competition and regulatory authorities as requirements to close acquisitions or dispositions could limit growth, revenue and the number and type of services offered, which could lead to increased operating costs and property and equipment additions.
With respect to licenses for mobile spectrum, the initial grant of the spectrum is sometimes subject to an auction process, but in a number of other cases, the license may be granted on the basis of an administrative process at a set level of fees for a fixed period of time, typically to coincide with carrier licenses, subject to the payment of annual fees and compliance with applicable license requirements.
With respect to licenses for new mobile spectrum, the initial grant of the spectrum is sometimes subject to an auction process, but spectrum in use since the initial grant of operating licenses are historically granted on the basis of an administrative process at a set level of fees for a fixed period of time, typically to coincide with carrier licenses, subject to the payment of annual fees and compliance with applicable license requirements.
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.
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 with Millicom (Tigo), Telecable and ICE (through the Kolbi brand) over their fixed networks, and with the DTH services of Claro.
Once granted, the operator must start paying for the allocated spectrum. Rate regulation of C&W Caribbean’s telephony services typically includes price caps that set the maximum rates it may charge to customers, or legislation that requires consent from a regulator prior to any price or non-price changes.
Rate regulation of C&W Caribbean’s telephony services typically includes price caps that set the maximum rates it may charge to customers, or legislation that requires consent from a regulator prior to any price or non-price changes.
To support our customers’ connectivity demands, we are expanding our networks to make high-speed broadband available to more people. This includes investment in the convergence of our fixed and mobile data systems and through our next generation WiFi products, which enable us to maximize the impact of our broadband networks by providing reliable, high-speed wireless connectivity anywhere in the home.
This includes investment in the convergence of our fixed and mobile data systems and through our next generation WiFi products, which enable us to maximize the impact of our broadband networks by providing reliable, high-speed wireless connectivity anywhere in the home.
On November 15, 2023, the FCC adopted a report and order and further notice of proposed rulemaking pursuant to the Infrastructure Act to broadly prohibit “digital discrimination of access” to broadband, defined as “policies or practices, not justified by genuine issues of technical or economic feasibility, that differentially impact consumers’ access to broadband internet access service based on their income level, race, ethnicity, color, religion or national origin, or are intended to have such differential impact.” Under the new rules, differentiation as to any available quality of service metric for broadband service may provide a basis for liability, absent sufficient justification.
On November 15, 2023, the FCC adopted a report and order and further notice of proposed rulemaking pursuant to the Infrastructure Act to broadly prohibit “digital discrimination of access” to broadband, defined as “policies or practices, not justified by genuine issues of technical or economic feasibility, that differentially impact consumers’ access to broadband internet access service based on their income level, race, ethnicity, color, religion or national origin, or are intended to have such differential impact” (also known as the Digital Discrimination Rules).
Although the legal framework in Latin America changes from country to country, we do own international/local carrier and Internet or data services licenses in every jurisdiction in which we operate. Most licenses are granted for a 10 to 15 year term. Some licenses and concessions are in the process of being renewed: Panama (Carrier), and United States (Carrier).
Although the legal framework in Latin America, the U.S. and the Caribbean changes from country to country, we do own international/local carrier and Internet or data services licenses in every jurisdiction in which we operate. Most licenses are granted for a 10 to 15 year term.
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.
Liberty Puerto Rico’s predecessor wireless provider in Puerto Rico (AT&T) was authorized by the FCC 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 USVI. That entity had previously obtained the required ETC designation in Puerto Rico.
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.
This concession has a 15-year renewable term, expiring on May 12, 2026, that may be extended for an additional 10 year term, and we have begun the process to renew this concession. 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.
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.
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 9,178 public phones.
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 Costa Rica, we compete with Claro and ICE (through the Kolbi brand) for the provision of mobile services. 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.
We believe we have complied with all local requirements to have existing licenses renewed. We expect that such licenses will be renewed, as applicable, on the same or substantially similar terms and conditions in a timely manner.
Some licenses and concessions are in the process of being renewed: Curacao (Carrier), Honduras (Carrier), Panama (Carrier), and Trinidad and Tobago (Carrier). We believe we have complied with all local requirements to have existing licenses renewed. We expect that such licenses will be renewed, as applicable, on the same or substantially similar terms and conditions in a timely manner.
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.
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 I-19 provision of these services, such as the attention to recommendations issued by the International Telecommunications Union.
We bring this to life through a shared approach across our markets with a focus on four critical areas: Learning; Environment; Access; and Disaster Relief. Our employees lead many of our outreach programs, working alongside our local and regional charitable foundations. We proudly support and give back to our communities.
We believe we have a responsibility to enable progress and build more I-28 resilient communities. We bring this to life through a shared approach across our markets with a focus on four critical areas: Learning; Environment; Access; and Disaster Relief. Our employees lead many of our outreach programs, working alongside our local and regional charitable foundations.
Liberty Networks With respect to Liberty Networks’ B2B and networks business in Latin America, we are subject to significantly less regulation in the markets in which we operate compared to our residential businesses described above. We do have the licenses in Latin America and the U.S. necessary to operate wholesale and enterprise services in all countries in which we operate.
Liberty Networks With respect to Liberty Networks’ B2B business in Latin America and wholesale business in Latin America and the Caribbean, we are subject to significantly less regulation in the markets in which we operate compared to our residential businesses described above.
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.
Controls and Procedures 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 recovery by our Puerto Rico operations; the timing, benefits and expected impact of the transaction with Millicom in Costa Rica; the anticipated benefits of the LPR 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.
By and large, spectrum assignments, once granted, remain unchanged for the duration of a license and beyond. In the Dutch Caribbean the frequencies are allotted on a “first come, first serve” basis, and they operate in the same frequency band divisions as mainland Europe. The regulator reserves the various spectrum evenly between the market players and grants these when needed.
By and large, spectrum assignments, once granted, remain unchanged for the duration of a license and beyond. In the Dutch Caribbean, which are Overseas Territories of the Netherlands, the frequencies are allotted on a “first come, first serve” basis, and they operate in the same frequency band divisions as mainland Europe.
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 proudly support and give back to our communities. In 2024, through our company-wide initiative, Mission Week , over 850 employees across 22 countries came together to contribute more than 8,900 volunteer hours in support of communities across Latin America and the Caribbean through a wide range of volunteer activities. Compensation, Benefits and Well-being.
For additional information, see note 6 to our consolidated financial statements; • on July 1, 2022, we completed the acquisition of América Móvil’s operations in Panama in an all-cash transaction based upon an enterprise value of $200 million on a cash- and debt-free basis; I-1 • effective December 31, 2021, we acquired 96% of the outstanding shares of Broadband VI, LLC for $33 million.
For additional information, see note 6 to our consolidated financial statements; and • on July 1, 2022, we completed the acquisition of América Móvil’s operations in Panama in an all-cash transaction based upon an enterprise value of $200 million on a cash- and debt-free basis. For information regarding our material financing transactions, see note 10 to our consolidated financial statements.
Risk Factors , Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 7A.
Risk Factors , Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations , Item 7A. Quantitative and Qualitative Disclosures About Market Risk and Item 9A.
Fixed 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.
Fixed Network and Product Penetration Data (%) Panama Jamaica The Bahamas Trinidad and Tobago Barbados Other C&W Costa Rica Puerto Rico Network data: Homes passed: HFC 34 % 41 % — % 99 % — % 56 % 55 % 83 % FTTH 64 % 57 % 89 % 1 % 100 % 43 % 45 % 17 % VDSL 2 % 2 % 11 % — % — % 1 % — % — % Product penetration: Television (1) 17 % 16 % 6 % 28 % 27 % 18 % 24 % 19 % Broadband internet (2) 27 % 43 % 21 % 36 % 57 % 50 % 33 % 46 % Fixed-line telephony (2) 25 % 42 % 25 % 26 % 48 % 27 % 12 % 24 % Double-play (3) 37 % 59 % 58 % 17 % 29 % 32 % 41 % 19 % Triple-play (3) 57 % 35 % 23 % 51 % 44 % 20 % 28 % 33 % (1) Percentage of total homes passed that subscribe to television services.
In recent years, a number of markets in which C&W Caribbean operate have demonstrated an increased interest in regulating various aspects of broadband internet services due to the increasing importance of high speed broadband. National regulators have also demonstrated an increased focus on the issues of network resilience, broadband affordability and penetration, quality of services and consumer rights.
In recent years, due to the increasing importance of high speed broadband, national regulators have demonstrated an increased focus on the issues of network resilience, broadband affordability and penetration, quality of services and consumer rights.
(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.
(a less than wholly-owned entity) and its subsidiaries, which include Liberty Servicios and Liberty Telecomunicaciones; and (iv) prior to the closing of the formation of the Chile JV in October 2022, VTR, as further described below. C&W owns less than 100% of certain of its consolidated subsidiaries, including C&W Bahamas and CWP.
As per a consolidation law, an acquiring operator could only have a maximum of 130MHz. Concessions . C&W Panama holds thirteen concessions renewed for the following twenty years, available until the year 2037, except a pay TV license that was renewed in 2008 for 25 years.
C&W Panama holds thirteen concessions renewed for the following twenty years, available until the year 2037, except a pay TV license that was renewed in 2008 for 25 years.
Our business in Puerto Rico is subject to comprehensive regulation under the Communications Act, which regulates communication, telecommunication and cable television services. The Communications Act also provides the general legal framework for, among other things, the provision of telephone services, services related to interconnection between telephone carriers, and television, radio, cable television and direct broadcast satellite services.
The Communications Act also provides the general legal framework for, among other things, the provision of telephone services, services related to interconnection between telephone carriers, and television, radio, cable television and direct broadcast satellite services.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

67 edited+21 added−12 removed285 unchanged
Biggest changeIn 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.
Biggest changeIn 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.
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.
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; I-33 • 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 • uncertainty regarding intellectual property rights and other legal issues.
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.
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 th e 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.
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.
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; I-41 • 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.
In addition, in certain jurisdictions where spectrum licenses must be renewed, there is no guarantee that we will be able to renew those licenses on similar or commercially viable terms, or at all.
In certain jurisdictions where spectrum licenses must be renewed, there is no guarantee that we will be able to renew those licenses on similar or commercially viable terms, or at all.
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.
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; I-29 • risks relating to our corporate history and structure; and • risks relating to our common shares and the securities market.
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.
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. Unauthorized access to our network resulting in piracy could result in a loss of revenue.
Any violations of applicable economic and trade sanctions could limit certain of our business activities until they are satisfactorily remediated and could result in civil and criminal penalties, including fines, that could damage our reputation and have a materially adverse effect on our results of operation or financial condition. Our businesses are subject to risks of adverse regulation.
I-35 Any violations of applicable economic and trade sanctions could limit certain of our business activities until they are satisfactorily remediated and could result in civil and criminal penalties, including fines, that could damage our reputation and have a materially adverse effect on our results of operation or financial condition. Our businesses are subject to risks of adverse regulation.
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 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.
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.
I-38 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.
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 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.
Accordingly, our results of operations and cash flows may be adversely affected if the macroeconomic environment becomes uncertain or declines or governments increase taxes or levies as a result of fiscal deficits or natural disasters. We are currently unable to predict the extent of any of these potential adverse effects.
Accordingly, our I-42 results of operations and cash flows may be adversely affected if the macroeconomic environment becomes uncertain or declines or governments increase taxes or levies as a result of fiscal deficits or natural disasters. We are currently unable to predict the extent of any of these potential adverse effects.
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.
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.
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 I-44 monitoring.
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.
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, 2024, John C.
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.
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.
Holders of our Class A common shares are entitled to one vote per share; holders of our Class B common shares are entitled to 10 votes per share; and holders of our Class C common shares are not entitled to any votes in respect of their common shares, unless such common shares are required to carry the right to vote under applicable law, in which case holders of our Class C common shares will be entitled to 1/100 of a vote per share.
Holders of our Class A common shares are entitled to one vote per share; holders of our Class B common shares are entitled to 10 votes per share; and holders of our Class C common shares are not entitled to any votes in respect of their common shares, unless such common shares are required to carry the right to vote under applicable law, in which case holders I-47 of our Class C common shares will be entitled to 1/100 of a vote per share.
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.
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, 2024.
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.
I-46 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.
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.
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.
Even if we are successful in acquiring new businesses, the integration of these businesses, such as in the AT&T Acquisition, the Liberty Telecomunicaciones Acquisition and the Claro Panama Acquisition , may present significant costs and challenges associated with: realizing economies of scale in interconnection, programming and network operations; eliminating duplicative overheads; migrating our acquired businesses’ customers to our systems; integrating personnel, networks, financial systems and operational systems and building new mobile cores and IT stacks; greater than anticipated expenditures required for compliance with regulatory standards or for investments to improve operating results; and failure to achieve the business plan with respect to any such acquisition.
Even if we are successful in acquiring new businesses, the integration of these businesses, such as in the AT&T Acquisition, may present significant costs and challenges associated with: realizing economies of scale in interconnection, programming and network operations; eliminating duplicative overheads; migrating our acquired businesses’ customers to our systems; integrating personnel, networks, financial systems and operational systems and building new mobile cores and IT stacks; greater than anticipated expenditures required for compliance with regulatory standards or for investments to improve operating results; and failure to achieve the business plan with respect to any such acquisition.
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.
Our policy is generally to provide for an economic hedge against foreign currency exchange rate movements, whenever I-34 possible and when cost effective to do so, by using derivative instruments to synthetically convert unmatched debt into the applicable underlying currency.
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.
New developments in other areas, such as artificial intelligence, machine learning, 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.
We are subject to changing tax laws, treaties and regulations in and between countries in which we operate or otherwise have a presence. Also, various income tax proposals in the jurisdictions in which we operate could result in changes to the existing laws on which our deferred taxes are calculated.
We are subject to changing tax laws, treaties and regulations in and between countries in which we operate or otherwise have a presence. Also, various income tax proposals in the jurisdictions in which we operate could result in changes to the I-39 existing laws on which our deferred taxes are calculated.
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.
I-48 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.
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.
As of December 31, 2024, 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-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.
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.
In this regard, it is difficult to predict how political and economic conditions, sovereign debt concerns or any adverse regulatory developments will impact the credit and equity markets we access and our future financial position.
In this regard, it is difficult to predict how political and economic I-40 conditions, sovereign debt concerns or any adverse regulatory developments will impact the credit and equity markets we access and our future financial position.
Our and our vendors’ servers, systems and equipment (including our routers and set-top boxes) are vulnerable to damage or security breach from a variety of sources, including a cut in our terrestrial network or subsea cable network, security flaws, and malicious human acts.
Our and our vendors’ servers, systems and equipment (including our routers and set-top boxes) are vulnerable to damage or security breach from a variety of sources, including a cut in our terrestrial network or subsea cable network, security flaws, and malicious human and state-sponsored acts.
Our future success also depends on our ability to adapt our services and infrastructure to meet rapidly evolving consumer trends and demands while continuing to improve the performance, features and reliability of our services in response to competitive service and product offerings.
I-32 Our future success also depends on our ability to adapt our services and infrastructure to meet rapidly evolving consumer trends and demands while continuing to improve the performance, features and reliability of our services in response to competitive service and product offerings.
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.
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.
When we acquire additional communications companies, these acquisitions may require the approval of governmental authorities, which can block, impose conditions on, or delay an acquisition, thus hampering our opportunities for growth.
I-36 When we acquire additional communications companies, these acquisitions may require the approval of governmental authorities, which can block, impose conditions on, or delay an acquisition, thus hampering our opportunities for growth.
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.
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 enhance our service offerings and improve the customer experience.
Any shortfall in our equipment could lead to delays in completing extensions to our networks and in connecting customers to our services and, accordingly, could adversely impact our ability to maintain or increase our RGU s, revenue and cash flows.
Any shortfall in our equipment could lead to delays in completing extensions to our networks and in connecting customers to our services and, accordingly, could adversely impact our ability to maintain or I-31 increase our RGU s, revenue and cash flows.
Malone beneficially owned a number of our common shares representing approximately 27% of the aggregate voting power of our outstanding common shares. As a result, Mr. Malone has significant influence over Liberty Latin America. Mr.
Malone beneficially owned a number of our common shares representing approximately 28% of the aggregate voting power of our outstanding common shares. As a result, Mr. Malone has significant influence over Liberty Latin America. Mr.
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.
I-37 Failure to comply with the FCC ’s requirements for the UPR Fund 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.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources. Certain of our subsidiaries are subject to various debt instruments that contain restrictions on how we finance our operations and operate our businesses, which could impede our ability to engage in beneficial transactions.
See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources. Certain of our subsidiaries are subject to various debt instruments that contain restrictions on how we finance our operations and operate our businesses, which could impede our ability to engage in beneficial transactions.
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.
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 I-50 exist with respect to our internal control over financial reporting as of December 31, 2024.
New products and services, once marketed, may not meet consumer expectations or demand, can be subject to delays in development and may fail to operate as intended.
New products and services, once marketed, may not meet consumer expectations or demand, can be subject to delays in development I-30 and may fail to operate as intended.
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.
As further described in note 8 to our consolidated financial statements, during the years ended December 31, 2024 and 2022, we incurred significant goodwill impairments.
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.
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.
The OECD has extended inclusion to non- OECD countries under their Inclusive Framework on BEPS , bringing together over 100 countries to collaborate on the implementation of the OECD BEPS Package.
The OECD has extended inclusion to non- OECD countries under their Inclusive Framework on BEPS , bringing together over 140 countries to collaborate on the implementation of the OECD BEPS Package.
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.
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 64% of such outstanding shares as of December 31, 2024 beneficially owned by John C.
Any such instance could have an adverse effect on our cash flows, results of operations, financial condition and/or liquidity.
Any such instance could have an adverse effect on our cash flows, results of operations, financial I-43 condition and/or liquidity.
We also face similar risks associated with security breaches affecting third parties with which we are affiliated or otherwise conduct business.
We also face similar risks associated with security breaches affecting third parties with which we are I-45 affiliated or otherwise conduct business.
In the case of cable- and broadband-enabled services, the existence of more than one cable or fiber-to-the-home/-cabinet/-building/-node system operating in the same territory is referred to as an “overbuild.” Overbuilds increase competition or create competition where none existed previously, either of which could adversely affect our growth, financial condition and results of operations.
In the case of cable- and broadband-enabled services, the existence of more than one cable or FTTH system operating in the same territory is referred to as an “overbuild.” Overbuilds increase competition or create competition where none existed previously, either of which could adversely affect our growth, financial condition and results of operations.
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.
In particular, the OECD has proposed a provision to impose a minimum tax rate of 15%, among other provisions, and as of 2024 more than 140 countries have tentatively signed on to the framework.
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.
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.
I-41 We may not be able to generate sufficient cash to meet our debt service obligations.
We may not be able to generate sufficient cash to meet our debt service obligations.
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.
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, 2024, our exposure to counterparty credit risk included (i) cash and cash equivalents and restricted cash balances of $667 million and (ii) aggregate undrawn debt facilities of $796 million.
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 of December 31, 2024, we had goodwill of $2,981 million, which represented approximately 23% 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.
Operational risks that we may experience in certain countries include uncertain and rapidly changing political, regulatory and economic conditions, including the possibility of disruptions of services or loss of property or equipment that are critical to overseas businesses as a result of vandalism, expropriation, nationalization, war, insurrection, terrorism or general social or political unrest.
Operational risks that we may experience in certain countries include uncertain and rapidly changing political, regulatory and economic conditions, including the possibility of disruptions of services or loss of property or equipment that are critical to overseas businesses as a result of vandalism, expropriation, nationalization, war, insurrection, terrorism, threats of military or economic coercion by other governments against the countries in which we operate, or general social or political unrest.
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.
Our businesses are highly leveraged. At December 31, 2024, the outstanding principal amount of our debt, together with our finance lease obligations, aggregated $8,143 million, including $466 million that is classified as current in our consolidated balance sheet and $7,627 million that is not due until 2027 or thereafter.
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.
Part of our business strategy is to grow and expand our businesses, in part, through selective acquisitions, such as the transaction with Millicom in Costa Rica, 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, 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.
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 . Compliance with FCC requirements may depend upon factors such as issuance of permits by local regulatory authorities.
If conditions are imposed and we fail to meet them in a timely manner, the governmental authority may impose fines and, if in connection with an acquisition transaction, may require restorative measures, such as mandatory disposition of assets or divestiture of operations, similar to the divestiture with respect to the AT&T Acquisition .
If conditions are imposed and we fail to meet them in a timely manner, the governmental authority may impose fines and, if in connection with an acquisition transaction, may require restorative measures, such as mandatory disposition of assets or divestiture of operations. The acquisition of C&W in May 2016 triggered regulatory approval requirements in certain jurisdictions in which C&W operates.
Additionally, product shipments from third-party suppliers may be delayed due to supply chain challenges that our suppliers may face. If such a disruption were to extend over a prolonged period, it could have an impact on the continuity of our supply chain and our ability to build or upgrade our networks and customer premises equipment generally.
If such a disruption were to extend over a prolonged period, it could have an impact on the continuity of our supply chain and our ability to build or upgrade our networks and customer premises equipment generally.
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.
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.
As a result, we cannot provide any guarantees that OFAC will not challenge any of our activities in the future, which could have a material adverse effect on our results of operations.
Due to this complexity, OFAC’s interpretation of its own regulations and guidance vary on a case to case basis. As a result, we cannot provide any guarantees that OFAC will not challenge any of our activities in the future, which could have a material adverse effect on our results of operations.
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.
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 duration and severity of the economic impacts stemming from the COVID-19 pandemic, competition, economic, regulatory or other factors, including macro-economic and demographic trends, are unknown and may be prolonged.
From time to time, the macroeconomic environment has also resulted in systemic disruption of the worldwide equity markets. The duration and severity of the economic impacts stemming from competition, economic, regulatory or other factors, including macro-economic and demographic trends, are unknown and may be prolonged.
In May 2018, the FCC established the UPR Fund and the Connect USVI Fund to provide subsidies for the deployment and hardening of fixed wireline and mobile wireless communications networks in Puerto Rico and the U.S. Virgin Islands, and in 2021, the FCC launched the ACP which provides a long-term broadband affordability benefit to low-income customers.
In May 2018, the FCC established the UPR Fund and the Connect USVI Fund to provide subsidies for the deployment and hardening of fixed wireline and mobile wireless communications networks in Puerto Rico and the U.S. Virgin Islands. Liberty Puerto Rico receives funds from the FCC through these programs.
The acquisition of C&W in May 2016 triggered regulatory approval requirements in certain jurisdictions in which C&W operates. The regulatory authorities in all of these jurisdictions, except for Trinidad and Tobago, have completed their review of the May 16, 2016 acquisition of C&W and have granted their approval.
The regulatory authorities in all of these jurisdictions, except for Trinidad and Tobago, have completed their review of the May 16, 2016 acquisition of C&W and have granted their approval. While we expect to receive this outstanding approval, such approval may include binding conditions or requirements that could have an adverse impact on C&W ’s operations and financial condition.
Thus, Liberty Puerto Rico’s annual Stage 2 mobile support was reduced from approximately $34 million to approximately $17 million in the first year of I-38 transitional support and will be reduced to approximately $8.5 million in the second year. In addition, continuation of the ACP, depends upon the appropriation of additional funds by Congress, which is uncertain.
Thus, Liberty Puerto Rico’s annual Stage 2 mobile support was reduced from approximately $34 million to approximately $17 million in the first year of transitional support and will be reduced to approximately $8.5 million in the second year. Reduced funding from these programs may have an adverse impact on Liberty Puerto Rico’s business and our RGUs, revenue and cash flow.
We believe that our activities with respect to these countries are known to OFAC. We note, however, that OFAC regulations and related interpretive guidance are complex and subject to varying interpretations. Due to this complexity, OFAC’s interpretation of its own regulations and guidance vary on a case to case basis.
OFAC extended this license in 2023 and 2024 and it currently expires on August 31, 2025. We will seek to renew this license for 2025-2026. We believe that our activities with respect to these countries are known to OFAC. We note, however, that OFAC regulations and related interpretive guidance are complex and subject to varying interpretations.
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.
Furthermore, the governments in the countries and territories in which we operate differ widely with respect to political structure, constitution, economic philosophy, stability and level of regulation. 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).
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.
For instance, C&W ’s license in The Bahamas is in the process of being renewed on the same or substantially similar terms and conditions as before and, in Antigua and Barbuda, the outdated mobile license is due to be renewed with an updated license.
Removed
While we expect to receive this outstanding approval, such approval may include binding conditions or requirements that could have an adverse impact on C&W ’s operations and financial condition. Furthermore, the governments in the countries and territories in which we operate differ widely with respect to political structure, constitution, economic philosophy, stability and level of regulation.
Added
Additionally, product shipments from third-party suppliers may be delayed or more costly due to supply chain challenges and new tariffs that our suppliers may face.
Removed
Compliance with FCC requirements may depend upon factors such as issuance of permits by local regulatory authorities.
Added
Moreover, in several of C&W ’s key markets, including Panama and The Bahamas, governments are C&W ’s partners and co-owners.
Removed
Reduced funding from these programs may have an adverse impact on Liberty Puerto Rico’s business and our RGUs, revenue and cash flow.
Added
In addition, in some of the ECTEL states, we are operating under expired licenses and have applied for renewal of such licenses. We have also begun the process to renew the mobile spectrum concession in Costa Rica that is scheduled to expire in 2026.
Removed
For example, we expect to acquire additional wireless spectrum in Puerto Rico and the USVI through the Puerto Rico and USVI Spectrum Acquisition .
Added
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. Our networks and our subsea cables could be subject to damage, cable cuts and surveillance from malicious state-sponsored actors.
Removed
If related to the Convertible Notes, Liberty Latin America Ltd.’s (excluding its subsidiaries) other debt agreements or instruments (if any) that contain cross-default or cross-acceleration provisions with respect to Latin America Ltd.’s other indebtedness may become payable on demand and it may not have sufficient funds to repay all of its debts. See Item 7.
Added
Moreover, our information technology and network systems may be subject to cyber ransom events that could result in the loss of critical information or operational capabilities that could materially impact our business operations.
Removed
T he current macroeconomic environment has also resulted in systemic disruption of the worldwide equity markets, and the market values of our publicly-traded equity declined significantly beginning in late February 2020 with the onset of the COVID-19 pandemic.
Added
We could be subject to changes in our tax rates, the enactment of legislation implementing changes in taxation of international business activities, the adoption of other corporate tax reform policies, or other changes in tax legislation or policies which could adversely affect our business, financial condition, and results of operations.
Removed
We indirectly own equity interests in a variety of international video, broadband internet, telephony, mobile and other communications businesses.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

9 edited+2 added−0 removed10 unchanged
Biggest changeOur GISO also keeps our executive team and our Audit Committee (if necessary) informed regarding any security incident that meets established reporting thresholds and ongoing updates regarding any such incident until it has been closed out. I-51 Management of Cybersecurity Risks From a management perspective, our GISO, led by our Chief Information Security Officer, operates our cybersecurity program .
Biggest changeOur GISO and Chief Legal Officer also keep our executive team and our Audit Committee (if necessary) informed regarding any security incident that meets established reporting thresholds and provide ongoing updates regarding any such incident until it has been closed out.
Our Audit Committee receives quarterly reports from both internal (e.g., management) and external sources (e.g., third-arty consultants), which cover topics that include, but are not limited to, recent cyber devel opments, evolving cyber standards, vulnerability assessments, third-party and independent reviews, the cyber threat environment, technological trends, and other cybersecurity considerations arising with respect to our company and third parties.
Our Audit Committee receives quarterly reports from both internal (e.g., management) and external sources (e.g., third-party consultants), which cover topics that include, but are not limited to, recent cyber devel opments, evolving cyber standards, vulnerability assessments, third-party and independent reviews, the cyber threat environment, technological trends, and other cybersecurity considerations arising with respect to our company and third parties.
Our Senior Leadership Team’s Qualifications Our current Chief Information Security Officer has served in various roles in information technology and information security for over 15 years, including as the Director of Information Security at the Colombian operations of a telecommunications company operating throughout Latin America and as the Head of Information Security in the Colombian operations of a large retail company operating in South America.
Our Senior Leadership Team’s Qualifications Our Chief Information Security Officer has served in various roles in information technology and information security for over 15 years, including as the Director of Information Security at the Colombian operations of a telecommunications company operating throughout Latin America and as the Head of Information Security in the Colombian operations of a large retail company operating in South America.
Engagement of Third-Parties Our GISO partners with third-party cybersecurity service and product vendors to provide protection of our networks, information resources, products, services and data for our customers and employees.
Engagement of Third-Parties Our GISO partners with third-party cybersecurity service and product vendors to provide protection of our networks, information resources, products, services and data of our customers and employees.
Our current Chief Technology Officer has extensive experience in running and managing cyber risks at large U.S. telecommunication companies and, prior to joining our company, had led the cybersecurity practice at a business unit at a large telecommunications company and established cyber risk identification, detection and protection practices for enterprise and government customers.
In addition, our Chief Technology Officer has extensive experience in running and managing cyber risks at large U.S. telecommunication companies and, prior to joining our company, had led the cybersecurity practice at a business unit at a large telecommunications company and established cyber risk identification, detection and protection practices for enterprise and government customers.
Although we rely on our third party service providers to implement security programs commensurate with their risk, we cannot ensure in all circumstances that their efforts will be successful.
Although we I-51 rely on our third party service providers to implement security programs commensurate with their risk, we cannot ensure in all circumstances that their efforts will be successful.
I-52 For more information regarding cybersecurity risks faced by our company, see Item 1A. Risk Factors—Factors Relating to Cybersecurity—Factors Relating to Cybersecurity , which are incorporated by reference into this section.
For more information regarding cybersecurity risks faced by our company, see Item 1A. Risk Factors—Factors Relating to Cybersecurity—Factors Relating to Cybersecurity , which are incorporated by reference into this section.
Governance of Cybersecurity Risks From a governance perspective, our Audit Committee oversee our cybersecurity program, including the management of risks arising from cybersecurity threats.
Governance of Cybersecurity Risks From a governance perspective, our Audit Committee oversees our cybersecurity program, including the management of risks arising from cybersecurity threats.
Our Chief Information Security Officer holds undergraduate, graduate and master’s degrees in risk management, business administration and information technology, as well as professional certification as a Certified Information Security Manager.
Our Chief Information Security Officer holds undergraduate, graduate and master’s degrees in risk management, business administration and information technology, as well as professional certification as a Certified Information Security Manager. Our Chief Information Security Officer reports to our Chief Legal Officer, who has served in that position since December 2017.
Added
Management of Cybersecurity Risks From a management perspective, our GISO, led by our Chief Information Security Officer, operates our cybersecurity program .
Added
Our Chief Legal Officer manages our cybersecurity function and legal matters affecting our company and risk management within the company. Our Chief Legal Officer’s responsibilities also include overseeing legal support for corporate governance, financial reporting, litigation, mergers and acquisitions and commercial contracts, regulatory and general compliance matters at our company and management of our government affairs function.

Item 2. Properties

Properties — owned and leased real estate

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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 ).
Biggest changeItem 2. PROPERTIES At December 31, 2024, 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 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. I-52

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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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
Biggest changeFor additional information, see note 17 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

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Biggest changeThis program authorizes us to repurchase from time to time up to an additional $200 million of our Class A common shares and/or Class C common shares through December 2024 in open market purchases at prevailing market prices, in privately negotiated transactions, in block trades, derivative transactions and/or through other legally permissible means.
Biggest changeII-1 Issuer Purchase of Equity Securities From time to time, our Directors approve Share Repurchase Programs, which authorize us to repurchase up to a specified dollar value of our Class A common shares and/or Class C common shares through specified dates via open market purchases at prevailing market prices, in privately negotiated transactions, in block trades, derivative transactions and/or through other legally permissible means.
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.
Securities Authorized for Issuance Under Equity Compensation Plans Information required by this item is incorporated by reference to our definitive proxy statement for our 2025 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 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).
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, 2019 to December 31, 2024, 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).
The graph assumes that $100 was invested on December 31, 2018.
The graph assumes that $100 was invested on December 31, 2019.
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
December 31, 2019 2020 2021 2022 2023 2024 Liberty Latin America Shares - Class A $ 100.00 $ 51.58 $ 54.03 $ 34.89 $ 33.87 $ 34.98 Liberty Latin America Shares - Class C $ 100.00 $ 51.85 $ 53.30 $ 35.53 $ 34.32 $ 34.63 MSCI Emerging Markets NTR Index $ 100.00 $ 117.73 $ 114.70 $ 91.66 $ 100.67 $ 108.78 Nasdaq Composite TR Index $ 100.00 $ 189.61 $ 231.66 $ 156.29 $ 226.06 $ 223.87 Item 6. [Reserved] II-2
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.
Class B High Low Year ended December 31, 2024 First quarter $ 10.00 $ 8.00 Second quarter $ 10.00 $ 6.08 Third quarter $ 10.00 $ 8.26 Fourth quarter $ 8.68 $ 5.55 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 Holders As of January 31, 2025, we had the following number of holders of record of our common stock: 10,666 Class A; 16 Class B; and 24,587 Class C.
Removed
II-1 Issuer Purchase of Equity Securities On February 22, 2022, our Directors approved the 2022 Share Repurchase Program.
Added
The Share Repurchase Programs do not obligate us to repurchase any of our Class A or C common shares.
Removed
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).
Added
During June 2024, we entered into capped call option contracts, pursuant to which we have purchased capped call options on a number of Class A and Class C common shares, which can result in the receipt of cash or shares at our election.
Removed
Due to rounding, the total number of shares purchased during the quarter may not recalculate.
Added
For information about amounts authorized under our Share Repurchase Programs and our capped call option contracts, see note 12 to our consolidated financial statements. There were no repurchases of our Class A or C common shares during the three months ended December 31, 2024.
Removed
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, 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.
Added
At December 31, 2024, the remaining amount authorized for repurchases under the Share Repurchase Programs was $242 million, which is net of the premium associated with the capped call option contracts.
Removed
(b) At December 31, 2023, the remaining amount authorized for repurchases of Liberty Latin America Shares was $139 million.

Item 6. [Reserved]

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

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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
Biggest changeItem 6. [Reserved] II- 2 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations II- 3 Item 7A. Quantitative and Qualitative Disclosures About Market Risk II- 29 Item 8. Financial Statements and Supplementary Data II- 32

Item 7. Management's Discussion & Analysis

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

127 edited+21 added−17 removed58 unchanged
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.
Biggest changeYear ended December 31, Increase (decrease) from: Increase (decrease) An acquisition 2024 2023 Organic in millions Personnel and contract labor $ 164.1 $ 154.9 $ 9.2 $ — $ 9.2 Network-related 36.3 52.5 (16.2) — (16.2) Service-related 119.7 79.5 40.2 1.8 38.4 Commercial 54.6 51.2 3.4 0.9 2.5 Facility, provision, franchise and other 227.9 206.7 21.2 — 21.2 Share-based compensation and other Employee Incentive Plan-related expense 6.8 6.2 0.6 — 0.6 Total other operating costs and expenses $ 609.4 $ 551.0 $ 58.4 $ 2.7 $ 55.7 • Personnel and contract labor: The organic increase is primarily driven by the net effect of (i) an increase resulting from the receipt of payroll tax credits during 2023 that were not received during 2024, and which tax credits were awarded to businesses that continued to pay employees or that experienced significant declines in gross receipts during the COVID-19 pandemic, and (ii) lower salaries and related personnel costs, driven by a reduction in headcount associated with restructuring plans. • Network-related: The organic decrease is primarily due to the net effect of (i) the termination of a transition service agreement during the first half of 2024, (ii) lower network maintenance expenses, (iii) higher vendor credits and related incentives and (iv) higher pole rental costs. • Service-related: The organic increase is primarily due to the net impact of (i) an increase in information technology service and license expenses, as we have transitioned mobile customers acquired from AT&T to our internal systems, and (ii) lower service-related integration costs associated with the migration of customers to our mobile network following the AT&T Acquisition. • Commercial: The organic increase is primarily driven by higher call center costs that were only partially offset by lower marketing expenses. • Facility, provision, franchise and other: The organic increase is primarily due to the net effect of (i) higher bad debt expense impacted by billing and collection issues experienced during and following the migration of customers to our mobile network and associated systems, and higher expected credit losses on amounts due under EIPs for customers that have churned, (ii) increased collection costs, (iii) a decrease due to the substantial termination of a transition services agreement during the first half of 2024, (iv) lower facility costs, including utilities, (v) lower company vehicle expenses and (vi) a decrease in bank and franchise fees.
Adjusted OIBDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income or loss. A reconciliation of total operating income, the nearest U.S.
Adjusted OIBDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income or loss. A reconciliation of total operating income (loss), the nearest U.S.
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 following table sets forth the organic and non-organic changes in programming and other direct costs of services on a consolidated basis.
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.
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) the expiration of deferred tax assets, which are entirely offset by valuation allowance, and (iv) the inclusion of withholding taxes on cross-border payments and capital gains tax.
We generally measure fair value by considering (i) sale prices for similar assets, (ii) discounted estimated future cash flows using an appropriate discount rate and/or (iii) estimated replacement cost. Assets to be disposed of are recorded at the lower of their carrying amount or fair value less costs to sell.
We generally measure fair value by considering (i) sale prices for similar assets, (ii) discounted estimated future cash flows using an appropriate discount rate and/or (iii) estimated replacement cost. Assets to be disposed of by sale are recorded at the lower of their carrying amount or fair value less costs to sell.
We evaluate goodwill and other indefinite-lived intangible assets (primarily cable television franchise rights and spectrum licenses) for impairment at least annually on July 1 and whenever facts and circumstances indicate that the fair value of a reporting unit or an indefinite-lived intangible asset may be less than its carrying value.
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 the fair value of a reporting unit or an indefinite-lived intangible asset may be less than its carrying value.
Realized and unrealized gains or losses on derivative instruments, net Our realized and unrealized gains or losses on derivative instruments primarily include (i) unrealized changes in the fair values of our derivative instruments that are non-cash in nature until such time as the derivative contracts are fully or partially settled and (ii) realized gains or losses upon the full or partial settlement of the derivative contracts.
II-20 Realized and unrealized gains or losses on derivative instruments, net Our realized and unrealized gains or losses on derivative instruments primarily include (i) unrealized changes in the fair values of our derivative instruments that are non-cash in nature until such time as the derivative contracts are fully or partially settled and (ii) realized gains or losses upon the full or partial settlement of the derivative contracts.
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.
A discussion regarding our financial condition and results of operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 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, 2023 filed with the SEC on February 22, 2024, 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.
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.
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 17, respectively, to our consolidated financial statements.
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.
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-23 acquisitions and other investment opportunities, (iv) the repurchase of debt securities, (v) tax payments or (vi) any funding requirements of our consolidated subsidiaries.
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.
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) rate changes, which are nearly entirely offset by valuation allowance, (iii) jurisdictional rate differences, (iv) tax credits and (v) changes in uncertain tax positions.
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.
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, 2024, each of our borrowing groups was in compliance with its debt covenants.
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.
For information regarding our defined benefit plans, see note 11 to our consolidated financial statements. II-27 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 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.
For the details of the borrowing availability of our borrowing groups at December 31, 2024, 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.
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.
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 2024, 2023 and 2022, 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 72% of our total assets at December 31, 2023.
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, 2024.
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 provides an analysis of our results of operations for the years ended December 31, 2024 and 2023. • 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, 2023.
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, 2024.
(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.
(b) The commitments included in this table do not reflect any liabilities that are included in our December 31, 2024 consolidated balance sheet other than debt, finance lease obligations and operating lease obligations.
During the year ended December 31, 2023, we used $62 million of cash from financing activities, primarily due to the net impact of (i) $137 million in net debt borrowings, including $244 million of proceeds from the Tower Transactions, as further described in note 10 to our consolidated financial statements, (ii) $118 million of cash outflows associated with the repurchase of Liberty Latin America common shares, (iii) $75 million in payments related to distributions to noncontrolling interest owners in C&W Panama, C&W Bahamas and Liberty Costa Rica, and (iii) $18 million of payments for financing costs and debt premiums, primarily associated with refinancing activity at Liberty Costa Rica.
During 2023, we used $62 million of cash for financing activities, primarily due to the net impact of (i) $137 million of net borrowings of debt, including $244 million of proceeds from the Tower Transactions, as further described in note 10 to our consolidated financial statements, (ii) $118 million of cash outflows associated with the repurchase of Liberty Latin America common shares, (iii) $75 million in payments related to distributions to noncontrolling interest owners in C&W Panama, C&W Bahamas and Liberty Costa Rica, and (iv) $18 million of payments for financing costs and debt premiums, primarily associated with refinancing activity at Liberty Costa Rica.
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.
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 and other Employee Incentive Plan-related 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.
Year Ended December 31, 2023 as Compared with Year Ended December 31, 2022 Operating Income or Loss The following table sets forth the organic and non-organic changes in the components of operating income or loss during 2023, as compared to 2022.
Year Ended December 31, 2024 as Compared with Year Ended December 31, 2023 Operating Income or Loss The following table sets forth the organic and non-organic changes in the components of operating income or loss during 2024, as compared to 2023.
Critical accounting policies are defined as those policies that are reflective of significant judgments, estimates and uncertainties, which would potentially result in materially different results under different assumptions and conditions.
Critical accounting policies are defined as those policies that are reflective of significant judgments, estimates and uncertainties, which could potentially result in materially different results under different assumptions and conditions.
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.
Our borrowing groups, which typically generate cash from operating activities, held a significant portion of our consolidated cash and cash equivalents at December 31, 2024.
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.
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-26 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, 2024.
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.
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 over 30 markets in that region.
Liberty Puerto Rico . The following table sets forth the changes in programming and other direct costs of services for our Liberty Puerto Rico segment.
Liberty Puerto Rico . The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our Liberty Puerto Rico 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.
II-18 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.
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 .
During 2024, the aggregate value of our share repurchases was $83 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 .
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.
Our liability for uncertain tax positions, including accrued interest, in the various jurisdictions in which we operate ($41 million at December 31, 2024) has been excluded from the table as the amount and timing of any related payments are not subject to reasonable estimation.
For additional information concerning our debt, including our debt maturities, see note 10 to our consolidated financial statements. II-25 The weighted average interest rate in effect at December 31, 2023 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin, was 7.1%.
For additional information concerning our debt, including our debt maturities, see note 10 to our consolidated financial statements. II-24 The weighted average interest rate in effect at December 31, 2024 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin, was 7.1%.
From time to time, our borrowing groups may also require liquidity in connection with (i) acquisitions and other investment opportunities, (ii) loans to Liberty Latin America, (iii) capital distributions to Liberty Latin America and other equity owners or (iv) the satisfaction of contingent liabilities.
From time to time, our borrowing groups may also require liquidity in connection with (i) acquisitions and other investment opportunities, such as the LPR Acquisition, (ii) loans to Liberty Latin America, (iii) capital distributions to Liberty Latin America and other equity owners or (iv) the satisfaction of contingent liabilities.
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.
For additional information regarding our liability for uncertain tax positions, see note 14 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, 2024.
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.
II-22 Liquidity and Capital Resources Sources and Uses of Cash As of December 31, 2024, 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.
When circumstances warrant, we review the carrying amounts of our property and equipment and our intangible assets (other than goodwill and other indefinite-lived intangible assets) to determine whether such carrying amounts continue to be recoverable.
When circumstances warrant, we review the carrying amounts of our property and equipment and our intangible assets (other than goodwill and other indefinite-lived intangible assets) to determine whether such carrying amounts are recoverable.
Included in the outstanding principal amount of our debt at December 31, 2023 is (i) $299 million of vendor financing obligations, which we use to finance certain of our operating expenses and property and equipment additions and are generally due within one year, other than for certain licensing arrangements that generally are due over the term of the related license, and (ii) $244 million of finance obligations related to the Tower Transactions.
Included in the outstanding principal amount of our debt at December 31, 2024 is (i) $328 million of vendor financing obligations, which we use to finance certain of our operating expenses and property and equipment additions and are generally due within one year, other than for certain licensing arrangements that generally are due over the term of the related license, and (ii) $247 million of finance obligations related to the Tower Transactions.
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.
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-15 • Share-based compensation and other Employee Incentive Plan-related expense that relates to (i) equity awards issued to our employees and Directors, (ii) certain bonus-related expenses that are paid in the form of equity and (iii) our LTVP, whether settled in common shares or cash.
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.
Net earnings or loss The following table sets forth selected summary financial information of our net loss: Year ended December 31, 2024 2023 in millions Operating income (loss) $ (48.3) $ 517.7 Net non-operating expenses $ (583.1) $ (580.1) Income tax benefit (expense) $ 4.1 $ (24.4) Net loss $ (627.3) $ (86.8) 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.
During November 2023, we entered into an agreement with Phoenix Tower International to monetize approximately 1,300 mobile tower sites across Panama, Jamaica, The Bahamas, Puerto Rico, Barbados, and the British Virgin Islands.
Tower Transactions During November 2023, we entered into an agreement with Phoenix Tower International to monetize approximately 1,300 mobile tower sites across Panama, Jamaica, The Bahamas, Puerto Rico, Barbados, and the British Virgin Islands. We completed these transactions across most markets during 2023.
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.
II-12 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, B2B project-related costs and other direct costs related to our operations. Consolidated.
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.
II-13 C&W Panama . The following table sets forth the changes in programming and other direct costs of services for our C&W Panama segment.
With respect to other indefinite-lived intangible assets, if it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying value, we then estimate its fair value and any excess of the carrying value over the fair value is also charged to operations as an impairment loss.
With respect to other indefinite-lived intangible assets, if it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value, we then estimate its fair value and any excess of the carrying value over the fair value is also recognized as an impairment in our consolidated statement of operations.
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-17 Liberty Puerto Rico . The following table sets forth the organic and non-organic changes in other operating costs and expenses for our Liberty Puerto Rico segment.
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.
At December 31, 2024, the outstanding principal amount of our debt, together with our finance lease obligations aggregated $8,143 million, including $466 million that is classified as current in our consolidated balance sheet and $7,627 million that is not due until 2027 or thereafter.
(d) The increase is primarily due to the net effect of (i) higher average postpaid mobile subscribers, (ii) lower prepaid and postpaid mobile ARPU and (iii) higher average prepaid mobile subscribers.
(c) The increase is primarily due to the net effect of (i) higher ARPU from prepaid mobile services, (ii) lower average numbers of prepaid mobile subscribers, and (iii) higher average numbers of postpaid mobile subscribers.
Foreign currency transaction gains or losses, net Our foreign currency transaction gains or losses primarily result from the remeasurement of monetary assets and liabilities that are denominated in currencies other than the underlying functional currency of the applicable entity.
Qualitative and Quantitative Disclosures about Market Risk below. Foreign currency transaction gains or losses, net Our foreign currency transaction gains or losses primarily result from the remeasurement of monetary assets and liabilities that are denominated in currencies other than the underlying functional currency of the applicable entity.
Such changes in circumstance may include (i) the impact of natural disasters such as hurricanes, (ii) an expectation of a sale or disposal of a long-lived asset or asset group, (iii) adverse changes in market or competitive conditions, (iv) an adverse change in legal factors or business climate in the markets in which we operate and (v) operating or cash flow losses.
Circumstances that could indicate the carrying amounts of long-lived assets may not be recoverable may include (i) the impact of natural disasters such as hurricanes, (ii) an expectation of a sale or disposal of a long-lived asset or asset group, (iii) adverse changes in market or competitive conditions, (iv) an adverse change in legal factors or business climate in the markets in which we operate and (v) operating or cash flow losses.
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 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.
(b) The decrease is primarily due to the net effect of (i) lower amortized prepaid capacity and operating and maintenance revenue driven by the cancellation of prepaid capacity contracts in prior periods, (ii) a decrease in revenue associated with the recognition of deferred revenue and penalties upon the termination or modification of prepaid capacity contracts, (iii) higher inter-segment revenue and (iv) an increase in non-recurring revenue related to a sales-type lease.
(b) The decrease is primarily due to (i) lower amortized prepaid capacity and operating and maintenance revenue driven by the cancellation of prepaid capacity contracts in prior periods, (ii) a decrease in non-recurring revenue related to a sales-type lease recognized during 2023 and (iii) a net decrease in revenue associated with the recognition of deferred revenue and penalties upon the termination or modification of prepaid capacity contracts during 2023 and 2024.
With respect to our discounted cash flow analysis used in the income-based approach, the timing and amount of future cash flows under these business plans require estimates of, among other items, subscriber growth and retention rates, rates charged per product, expected gross margins and Adjusted OIBDA margins and expected property and equipment additions.
Our discounted cash flow analysis used is based on assumptions in our long-range business plans, and the timing and amount of future cash flows under these business plans require estimates of, among other items, subscriber growth and retention rates, rates charged per product, expected gross margins and Adjusted OIBDA margins and expected property and equipment additions.
For purposes of impairment testing, long-lived assets are grouped at the lowest level for which cash flows are largely independent of other assets and liabilities, generally at or below the reporting unit level (see below).
For purposes of impairment testing, long-lived assets are grouped at the lowest level for which cash flows are largely independent of other assets and liabilities, generally at or below the reporting unit level. A reporting unit is an operating segment or one level below an operating segment.
When evaluating impairment with respect to goodwill and other indefinite-lived intangibles, we first make a qualitative assessment to determine if the goodwill or other indefinite-lived intangible may be impaired.
When evaluating goodwill and other indefinite-lived intangible assets for impairment, we first make a qualitative assessment to determine if the goodwill or other indefinite-lived intangible asset may be impaired.
(d) Includes $145 million and $55 million of cash held by operations in C&W Panama and C&W Bahamas, respectively.
(d) Includes $71 million and $52 million of cash held by operations in C&W Panama and C&W Bahamas, respectively.
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.
The weighted average impact of the derivative instruments on our borrowing costs at December 31, 2024 was as follows: Borrowing group Decrease to borrowing costs C&W (1.3) % Liberty Puerto Rico (0.5) % Liberty Costa Rica — % Liberty Latin America borrowing groups (1.0) % Including the effects of derivative instruments, original issue premiums or discounts, and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 6.2% at December 31, 2024.
Results of operations (below Adjusted OIBDA) Share-based compensation expense (included in other operating costs and expenses) Share-based compensation expense remained relatively flat during 2023, as compared to 2022. For additional information regarding our share-based compensation, see note 15 to our consolidated financial statements.
II-19 Results of operations (below Adjusted OIBDA) Share-based compensation and other Employee Incentive Plan-related expense (included in other operating costs and expenses) Share-based compensation and other Employee Incentive Plan-related expense remained relatively flat during 2024, as compared to 2023. For additional information regarding our share-based compensation and other Employee Incentive Plan-related expense, see note 13 to our consolidated financial statements.
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.
The decrease in cash provided by operating activities is primarily due to the net effect of (i) declines associated with lower Adjusted OIBDA, and higher payments for interest and taxes, (ii) an increase resulting from higher net receipts associated with derivative instruments, and (iii) a net increase from other working capital-related items.
Depreciation and amortization Our depreciation and amortization expense increased $98 million or 11% during 2023, as compared to 2022, primarily due to the net effect of (i) an increase in property and equipment additions, primarily associated with baseline related additions, the installation of CPE and the expansion and upgrade of our networks and other capital initiatives, (ii) a decrease associated with certain assets becoming fully depreciated, (iii) a decrease associated with customer relationship assets becoming fully amortized in Liberty Puerto Rico and (iv) an increase at C&W Panama resulting from the Claro Panama Acquisition.
Depreciation and amortization Our depreciation and amortization expense decreased $40 million or 4% during 2024, as compared to 2023, primarily due to the net effect of (i) a decrease associated with customer relationship assets becoming fully amortized in C&W Panama, (ii) a decrease associated with certain assets becoming fully depreciated and (iii) an increase from property and equipment additions, primarily associated with baseline-related additions, the expansion and upgrade of our networks and other capital initiatives and the installation of CPE.
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.
The details of our foreign currency transaction gains (losses), net, are as follows: Year ended December 31, 2024 2023 in millions U.S. dollar-denominated debt issued by non-U.S.dollar functional currency entities (a) $ 10.2 $ 54.4 Intercompany payables and receivables denominated in a currency other than the entity’s functional currency (14.9) 7.8 Other (b) (13.6) 8.1 Total $ (18.3) $ 70.3 (a) The net gains are primarily due to a CRC functional currency entity.
At December 31, 2023, $8,027 million of our debt and finance lease obligations have been borrowed or incurred by our subsidiaries.
All of our debt and finance lease obligations have been borrowed or incurred by our subsidiaries at December 31, 2024.
In the case of goodwill, if it is more-likely-than-not that a reporting unit’s fair value is less than its carrying value, we then compare the fair value of the reporting unit to its respective carrying amount. A reporting unit is an operating segment or one level below an operating segment (referred to as a “component”).
In the case of goodwill, if it is more likely than not that a reporting unit’s fair value is less than its carrying value, we then compare the fair value of the reporting unit to its respective carrying amount.
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.
During the years ended December 31, 2024 and 2023, our property and equipment additions represented 16.3% and 16.2% of revenue, respectively. Financing Activities.
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.
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, 2024 2023 in millions Property and equipment additions $ 725.3 $ 730.9 Assets acquired under capital-related vendor financing arrangements (154.9) (143.8) Changes in current liabilities related to capital expenditures and other (30.0) (2.1) Capital expenditures, net $ 540.4 $ 585.0 The decrease in our property and equipment additions during the year ended December 31, 2024, as compared to 2023, is primarily due to the net effect of (i) decreases related to CPE and product and enablers additions, and (ii) increases associated with baseline and capacity-related additions.
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.
C&W Caribbean’s revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2024 2023 $ % in millions, except percentages Residential revenue: Residential fixed revenue: Subscription revenue $ 486.2 $ 487.5 $ (1.3) (0.3) Non-subscription revenue 28.0 29.0 (1.0) (3.4) Total residential fixed revenue 514.2 516.5 (2.3) (0.4) Residential mobile revenue: Service revenue 352.3 330.3 22.0 6.7 Interconnect, inbound roaming, equipment sales and other 79.5 78.8 0.7 0.9 Total residential mobile revenue 431.8 409.1 22.7 5.5 Total residential revenue 946.0 925.6 20.4 2.2 B2B revenue 516.8 511.4 5.4 1.1 Total $ 1,462.8 $ 1,437.0 $ 25.8 1.8 The details of the changes in C&W Caribbean’s revenue during 2024, as compared to 2023, are set forth below (in millions): Increase (decrease) in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ (0.7) ARPU (b) 1.5 Decrease in residential fixed non-subscription revenue (0.8) Total change in residential fixed revenue — Increase in residential mobile service revenue (c) 24.0 Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue 1.0 Increase in B2B revenue (d) 7.3 Total organic increase 32.3 Impact of FX (6.5) Total $ 25.8 (a) The decrease is primarily due to the net effect of (i) lower average video and fixed-line telephony RGUs and (ii) higher average broadband internet RGUs.
Liberty Networks’ revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2023 2022 $ % in millions, except percentages B2B revenue: Enterprise revenue $ 118.5 $ 113.7 $ 4.8 4.2 Wholesale revenue 334.8 337.1 (2.3) (0.7) Total $ 453.3 $ 450.8 $ 2.5 0.6 The details of the changes in Liberty Networks’ revenue during 2023, as compared to 2022, are set forth below (in millions): Increase in enterprise revenue (a) $ 5.3 Decrease in wholesale revenue (b) (1.7) Total organic increase 3.6 Impact of FX (1.1) Total $ 2.5 (a) The increase is primarily attributable to the net effect of (i) higher B2B connectivity revenue, (ii) a decrease attributable to our B2B operations that were sold to the Liberty Costa Rica segment in January 2023, (iii) growth in managed services and (iv) an increase associated with sales-type leases on CPE installed on long-term customer solutions.
Liberty Networks’ revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2024 2023 $ % in millions, except percentages B2B revenue: Enterprise revenue $ 131.1 $ 118.5 $ 12.6 10.6 Wholesale revenue 316.4 334.8 (18.4) (5.5) Total $ 447.5 $ 453.3 $ (5.8) (1.3) The details of the changes in Liberty Networks’ revenue during 2024, as compared to 2023, are set forth below (in millions): Increase in enterprise revenue (a) $ 9.9 Decrease in wholesale revenue (b) (20.0) Total organic decrease (10.1) Impact of FX 4.3 Total $ (5.8) (a) The increase is primarily attributable to the net effect of (i) growth in managed services, (ii) higher B2B connectivity revenue, and (iii) a decrease associated with sales-type leases on CPE installed on long-term customer solutions, due mostly to a higher mix of contracts recognized on a net basis.
As of December 31, 2023, we completed these transactions across most markets, which resulted in the receipt of approximately $244 million, which is recorded as debt in our consolidated financial statements. The transaction provides arrangements to extend coverage with a further 500 sites being built by Liberty Latin America and Phoenix Tower International over the next five years.
During 2024 and 2023, we received proceeds of $9 million and $244 million, respectively , related to the Tower Transactions, which is recorded as debt in our consolidated financial statements. The transaction provides arrangements to extend coverage with a further 500 sites being built by Liberty Latin America and Phoenix Tower International over the next four years.
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.
Cash and cash equivalents The details of the U.S. dollar equivalent balances of our cash and cash equivalents at December 31, 2024 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) $ 10.4 Unrestricted subsidiaries (b) 80.2 Total Liberty Latin America and unrestricted subsidiaries 90.6 Borrowing groups (c): C&W (d) 523.0 Liberty Puerto Rico 23.0 Liberty Costa Rica 17.7 Total borrowing groups 563.7 Total cash and cash equivalents $ 654.3 (a) Represents the amount held by Liberty Latin America on a standalone basis.
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.
Our 2024 and 2023 consolidated statements of cash flows are summarized as follows: Year ended December 31, 2024 2023 Change in millions Net cash provided by operating activities $ 756.3 $ 897.0 $ (140.7) Net cash used by investing activities (688.5) (615.8) (72.7) Net cash used by financing activities (386.4) (62.4) (324.0) Effect of exchange rate changes on cash, cash equivalents and restricted cash (10.9) (7.9) (3.0) Net increase (decrease) in cash, cash equivalents and restricted cash $ (329.5) $ 210.9 $ (540.4) Operating Activities.
To assist us in making these fair value determinations, we may engage third-party valuation specialists. Our estimates in this area impact, among other items, the amount of depreciation and amortization and income tax expense or benefit that we report. Our estimates of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain.
To assist us in making these fair value determinations, we may engage third-party valuation specialists. Our estimates in this area impact, among other items, the measurement of goodwill as well as future amounts of depreciation and amortization and income tax expense or benefit that we report.
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 Panama’s revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2024 2023 $ % in millions, except percentages Residential revenue: Residential fixed revenue: Subscription revenue $ 122.3 $ 116.5 $ 5.8 5.0 Non-subscription revenue 5.0 5.5 (0.5) (9.1) Total residential fixed revenue 127.3 122.0 5.3 4.3 Residential mobile revenue: Service revenue 272.2 260.6 11.6 4.5 Interconnect, inbound roaming, equipment sales and other 61.0 52.0 9.0 17.3 Total residential mobile revenue 333.2 312.6 20.6 6.6 Total residential revenue 460.5 434.6 25.9 6.0 B2B revenue 302.7 308.0 (5.3) (1.7) Total $ 763.2 $ 742.6 $ 20.6 2.8 The details of the changes in C&W Panama’s revenue during 2024, as compared to 2023, are set forth below (in millions): Increase (decrease) in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ 9.8 ARPU (b) (4.0) Decrease in residential fixed non-subscription revenue (0.5) Total increase in residential fixed revenue 5.3 Increase in residential mobile service revenue (c) 11.6 Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (d) 9.0 Decrease in B2B revenue (e) (5.3) Total $ 20.6 (a) The increase is primarily due to higher average broadband internet RGUs.
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.
Year ended December 31, 2024 2023 in millions Operating income (loss) $ (48.3) $ 517.7 Share-based compensation and other Employee Incentive Plan-related expense 84.0 88.7 Depreciation and amortization 968.3 1,008.3 Impairment, restructuring and other operating items, net 589.7 86.9 Consolidated Adjusted OIBDA $ 1,593.7 $ 1,701.6 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 Corporate Intersegment eliminations Consolidated in millions Adjusted OIBDA for the year ending: December 31, 2023 $ 596.9 $ 227.7 $ 261.5 $ 485.5 $ 203.1 $ (73.1) $ — $ 1,701.6 Organic changes related to: Revenue 32.3 20.6 (10.1) (169.7) 33.9 (3.9) 1.1 (95.8) Programming and other direct costs of services 6.1 3.8 4.6 46.6 (9.6) — (4.9) 46.6 Other operating costs and expenses 1.2 17.6 (14.0) (55.1) (9.7) (12.4) 3.8 (68.6) Non-organic increases (decreases): FX (3.2) — 0.7 — 11.8 (0.4) — 8.9 An acquisition — — — 1.0 — — — 1.0 December 31, 2024 $ 633.3 $ 269.7 $ 242.7 $ 308.3 $ 229.5 $ (89.8) $ — $ 1,593.7 II-6 Adjusted OIBDA Margin The following table sets forth the Adjusted OIBDA Margin of each of our reportable segments: Year ended December 31, 2024 2023 % C&W Caribbean 43.3 41.5 C&W Panama 35.3 30.7 Liberty Networks 54.2 57.7 Liberty Puerto Rico 24.5 34.2 Liberty Costa Rica 37.4 37.1 Adjusted OIBDA margin is impacted by organic changes in revenue, programming and other direct costs of services and other operating costs and expenses.
Liberty Costa Rica’s revenue by major category is set forth below: Year ended December 31, Increase 2023 2022 $ % in millions, except percentages Residential revenue: Residential fixed revenue: Subscription revenue $ 144.3 $ 131.5 $ 12.8 9.7 Non-subscription revenue 14.3 5.1 9.2 180.4 Total residential fixed revenue 158.6 136.6 22.0 16.1 Residential mobile revenue: Service revenue 242.1 195.1 47.0 24.1 Interconnect, inbound roaming, equipment sales and other 80.2 64.8 15.4 23.8 Total residential mobile revenue 322.3 259.9 62.4 24.0 Total residential revenue 480.9 396.5 84.4 21.3 B2B revenue 67.0 44.8 22.2 49.6 Total $ 547.9 $ 441.3 $ 106.6 24.2 The details of the changes in Liberty Costa Rica’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) $ (2.4) ARPU (b) (7.8) Increase in residential fixed non-subscription revenue (c) 7.0 Total decrease in residential fixed revenue (3.2) Increase in residential mobile service revenue (d) 8.5 Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue 2.7 Increase in B2B revenue (e) 13.2 Total organic increase 21.2 Impact of FX 85.4 Total $ 106.6 (a) The decrease is primarily due to the net impact of (i) lower average video RGUs and (ii) higher average fixed-line telephony RGUs.
Liberty Costa Rica’s revenue by major category is set forth below: Year ended December 31, Increase (decrease) 2024 2023 $ % in millions, except percentages Residential revenue: Residential fixed revenue: Subscription revenue $ 137.1 $ 144.3 $ (7.2) (5.0) Non-subscription revenue 35.2 14.3 20.9 146.2 Total residential fixed revenue 172.3 158.6 13.7 8.6 Residential mobile revenue: Service revenue 276.0 242.1 33.9 14.0 Interconnect, inbound roaming, equipment sales and other 88.9 80.2 8.7 10.8 Total residential mobile revenue 364.9 322.3 42.6 13.2 Total residential revenue 537.2 480.9 56.3 11.7 B2B revenue 75.9 67.0 8.9 13.3 Total $ 613.1 $ 547.9 $ 65.2 11.9 The details of the changes in Liberty Costa Rica’s revenue during 2024, as compared to 2023, are set forth below (in millions): Increase (decrease) in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ 1.1 ARPU (b) (15.4) Increase in residential fixed non-subscription revenue (c) 19.0 Total increase in residential fixed revenue 4.7 Increase in residential mobile service revenue (d) 19.7 Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) 4.1 Increase in B2B revenue (f) 5.4 Total organic increase 33.9 Impact of FX 31.3 Total $ 65.2 (a) The increase is primarily due to the net effect of (i) increases in the average number of broadband internet and fixed-line telephony RGUs and (ii) a decrease in the average number of video RGUs.
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.
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 (i) RGUs, (ii) ARPU and/or (iii) B2B revenue.
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.
Liberty Puerto Rico’s revenue by major category is set forth below: Year ended December 31, Decrease 2024 2023 $ % in millions, except percentages Residential fixed revenue: Subscription revenue $ 474.5 $ 478.7 $ (4.2) (0.9) Non-subscription revenue 23.3 25.5 (2.2) (8.6) Total residential fixed revenue 497.8 504.2 (6.4) (1.3) Residential mobile revenue: Service revenue 333.4 398.7 (65.3) (16.4) Interconnect, inbound roaming, equipment sales and other 189.0 250.0 (61.0) (24.4) Total residential mobile revenue 522.4 648.7 (126.3) (19.5) Total residential revenue 1,020.2 1,152.9 (132.7) (11.5) B2B revenue 206.7 224.3 (17.6) (7.8) Other revenue 33.6 40.5 (6.9) (17.0) Total $ 1,260.5 $ 1,417.7 $ (157.2) (11.1) II-10 The details of the changes in Liberty Puerto Rico’s revenue during 2024, as compared to 2023, are set forth below (in millions): Increase (decrease) in residential fixed subscription revenue due to change in: Average number of RGUs (a) $ 3.1 ARPU (b) (7.3) Decrease in residential fixed non-subscription revenue (2.2) Total decrease in residential fixed revenue (6.4) Decrease in residential mobile service revenue (c) (77.3) Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (d) (61.5) Decrease in B2B revenue (e) (17.6) Decrease in other revenue (f) (6.9) Total organic decrease (169.7) Impact of an acquisition 12.5 Total $ (157.2) (a) The increase is primarily attributable to the net effect of (i) higher average broadband internet and fixed-line telephony RGUs and (ii) lower average video RGUs.
We recognized gains (losses) on debt extinguishment, net, of ($4 million) and $41 million during 2023 and 2022, respectively. The net loss during the 2023 period is primarily due to the net effect of (i) losses associated with refinancing activity at Liberty Costa Rica during January 2023 and (ii) net gains associated with the partial repurchases of the Convertible Notes.
The net loss during the 2023 period is primarily due to the net effect of (i) losses associated with refinancing activity at Liberty Costa Rica during January 2023 and (ii) net gains associated with the partial repurchases of the Convertible Notes. For additional information concerning our losses on debt modification and extinguishment, see note 10 to our consolidated financial statements.
Goodwill impairment is recorded as the excess of a reporting unit’s carrying value over its fair value and is charged to operations.
Goodwill impairment is measured as the excess of a reporting unit’s carrying value over its fair value and is recognized as an impairment in our consolidated statement of operations.
II-21 (b) The losses during 2023 and 2022 are primarily attributable to changes in FX rates due to (i) the value of the CRC relative to the U.S. dollar and (ii) for the 2022 period, the value of the CLP relative to the U.S. dollar prior to the disposition of the Chile JV Entities.
(b) The losses during 2024 and 2023 are primarily attributable to changes in FX rates due to the value of the CRC relative to the U.S. dollar.
II-4 Puerto Rico and USVI Spectrum Acquisition. During November 2023, we entered into an asset purchase agreement and a license purchase agreement with Dish Network to acquire Dish Network spectrum assets in Puerto Rico and USVI and prepaid mobile subscribers in those markets in exchange for cash and international roaming credits.
LPR Acquisition During November 2023, we entered into an agreement with EchoStar to acquire EchoStar’s prepaid business and spectrum assets in Puerto Rico and USVI in exchange for cash and international roaming credits.
Year ended December 31, Increase (decrease) 2023 2022 in millions Personnel and contract labor $ 41.4 $ 40.5 $ 0.9 Network-related — 0.7 (0.7) Service-related 23.2 25.3 (2.1) Facility, provision, franchise and other 32.4 27.6 4.8 Share-based compensation expense 58.0 48.6 9.4 Total other operating costs and expenses $ 155.0 $ 142.7 $ 12.3 • Personnel and contract labor: The increase is primarily attributable to the net effect of (i) higher salaries and related personnel costs, mainly resulting from higher staffing levels in our operations center in Panama and (ii) an increase in capitalized labor costs. • Facility, provision, franchise and other: The increase is primarily due to insurance costs recognized in 2023 associated with cable breaks and business interruption claims submitted by our Liberty Puerto Rico business.
Year ended December 31, Increase (decrease) 2024 2023 in millions Personnel and contract labor $ 56.6 $ 41.4 $ 15.2 Service-related 25.0 23.2 1.8 Facility, provision, franchise and other 27.8 32.4 (4.6) Share-based compensation and other Employee Incentive Plan-related expense 46.0 58.0 (12.0) Total other operating costs and expenses $ 155.4 $ 155.0 $ 0.4 • Personnel and contract labor: The increase is primarily due to (i) higher bonus-related expense and (ii) lower capitalized labor. • Service-related: The increase is primarily due to the net effect of higher professional services costs and other insignificant changes across other service-related cost categories. • Facility, provision, franchise and other: The decrease is primarily due to insurance costs recognized during 2023 associated with (i) cable breaks that occurred during the first quarter of 2023 and (ii) business interruption claims submitted by our Liberty Puerto Rico business during the second quarter of 2023.
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.
Year ended December 31, Increase (decrease) Increase (decrease) from: 2024 2023 FX Organic in millions Personnel and contract labor $ 46.4 $ 45.0 $ 1.4 $ 1.5 $ (0.1) Network-related 47.9 45.7 2.2 0.4 1.8 Service-related 9.8 6.1 3.7 0.1 3.6 Commercial 1.4 1.7 (0.3) — (0.3) Facility, provision, franchise and other 34.3 24.6 9.7 0.7 9.0 Share-based compensation and other Employee Incentive Plan-related expense 3.6 3.1 0.5 — 0.5 Total other operating costs and expenses $ 143.4 $ 126.2 $ 17.2 $ 2.7 $ 14.5 • Network-related: The organic increase is primarily related to higher maintenance costs. • Service-related: The organic increase is primarily due to higher outsourcing and software upgrade expenses. • Facility, provision, franchise and other: The organic increase is primarily due to higher bad debt expense, mostly driven by adjustments for two large customers during 2024.
Year ended December 31, Increase (decrease) Increase (decrease) from: 2023 2022 FX Organic in millions Personnel and contract labor $ 202.5 $ 204.6 $ (2.1) $ — $ (2.1) Network-related 135.9 142.4 (6.5) — (6.5) Service-related 76.5 72.7 3.8 — 3.8 Commercial 46.1 45.7 0.4 — 0.4 Facility, provision, franchise and other 149.4 145.6 3.8 — 3.8 Share-based compensation expense 16.8 20.1 (3.3) — (3.3) Total other operating costs and expenses $ 627.2 $ 631.1 $ (3.9) $ — $ (3.9) • Personnel and contract labor: The organic decrease is primarily due to the net effect of (i) lower costs resulting from increases in capitalized labor, and (ii) salary increases. • Network-related: The organic decrease is primarily due to declines associated with lower (i) truck rolls, (ii) system power costs and (iii) maintenance costs.
Year ended December 31, Increase (decrease) Increase (decrease) from: 2024 2023 FX Organic in millions Personnel and contract labor $ 201.3 $ 202.5 $ (1.2) $ (0.7) $ (0.5) Network-related 133.4 135.9 (2.5) (0.6) (1.9) Service-related 70.6 76.5 (5.9) (0.1) (5.8) Commercial 42.1 46.1 (4.0) (0.2) (3.8) Facility, provision, franchise and other 159.6 149.4 10.2 (0.6) 10.8 Share-based compensation and other Employee Incentive Plan-related expense 18.9 16.8 2.1 — 2.1 Total other operating costs and expenses $ 625.9 $ 627.2 $ (1.3) $ (2.2) $ 0.9 • Network-related: The organic decrease is primarily due the net effect of (i) lower power costs driven by a decrease in consumption and rates, (ii) lower costs driven by a reduction in outsourced contracts, and (iii) higher maintenance costs.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changePayments (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.
Biggest changePayments (receipts) due during: Total 2025 2026 2027 2028 2029 and Thereafter in millions Projected derivative cash payments (receipts), net: Interest-related (a) $ (56.8) $ (75.4) $ (48.5) $ (20.5) $ — $ (201.2) Other (b) 13.2 — — — — 13.2 Total $ (43.6) $ (75.4) $ (48.5) $ (20.5) $ — $ (188.0) (a) Includes the interest-related cash flows of our interest rate derivative contracts.
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.
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 $16 million.
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.
For additional information concerning our foreign currency forward contracts, see note 7 to our consolidated financial statements. II-29 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.
In this regard, we use judgment to determine the appropriate maturity dates of our portfolios of interest rate derivative instruments, taking into account the relative costs and benefits of different maturity profiles in light of current and expected future market conditions, liquidity issues and other factors.
II-30 In this regard, we use judgment to determine the appropriate maturity dates of our portfolios of interest rate derivative instruments, taking into account the relative costs and benefits of different maturity profiles in light of current and expected future market conditions, liquidity issues and other factors.
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.
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, 2024.
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.
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, 2024, we paid a fixed or capped rate of interest on 96% of our total debt, which includes the impact of our interest rate derivative contracts.
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.
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, 2024.
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).
II-31 C&W Interest Rate Derivative Contracts Holding all other factors constant, at December 31, 2024, 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 $52 million ($52 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).
Liberty Puerto Rico Interest Rate Derivative Contracts Holding all other factors constant, at December 31, 2024, 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 $17 million ($17 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.
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, 2024, our exposure to counterparty credit risk included (i) cash and cash equivalent balances of $654 million and (ii) aggregate undrawn credit facilities of $796 million.
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.
Our primary exposures to FX risk during 2024 were to (i) the CRC as 14% of our reported revenue for the period was derived from Liberty Costa Rica, whose functional currency is the CRC and (ii) the JMD as 9.3% of our reported revenue for the period was derived from C&W Jamaica, whose functional currency is the JMD.
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.
At December 31, 2024, the outstanding principal amount of our variable-rate indebtedness aggregated $3,128 million, and the weighted average interest rate (including margin) on such variable-rate indebtedness was approximately 7.5%, 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.
The 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.
The 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, 2024 2023 Spot rates: CRC 510.49 523.04 JMD 155.33 154.35 Year ended December 31, 2024 2023 Average rates: CRC 515.50 543.74 JMD 155.87 153.51 Inflation and Foreign Investment Risk We are subject to inflationary pressures with respect to labor, programming and other costs.

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