What changed in this filing

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Item 9A. Controls and Procedures

2021-03-01 compared with 2020-02-19 · 1468 added, 1039 removed, 1513 unchanged (62% of the section changed)

13 unchanged sentences

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

Our management, with the participation of the Executives and Board of Directors, assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2019 , using the criteria in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ( COSO ).

Our evaluation of internal control over financial reporting did not include the internal control over financial reporting of United Telecommunications Services N.V.

( UTS ), which was acquired in 2019.

The amount of total assets and revenue included in our consolidated financial statements as of and for the year ended December 31, 2019 that is attributable to UTS was $243.2 million and $96.4 million, respectively.

Our management, with the participation of the Executives and Board of Directors, assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2020, using the criteria in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Our evaluation of

internal control over financial reporting did not include the internal control over financial reporting of the AT&T Acquired Entities, which were acquired in 2020.

The amount of total assets and revenue included in our consolidated financial statements as of and for the year ended December 31, 2020 that is attributable to the AT&T Acquired Entities was $2,707 million and $174 million, respectively.

In our Annual Report on Form 10-K for our fiscal year ended December 31, 2018, management identified the following material weaknesses in internal control over financial reporting, which continue to exist as of December 31, 2020:

6 unchanged sentences

Automated process-level controls and manual controls dependent upon the accuracy and completeness of information derived from information technology systems were also rendered ineffective because they are affected by the lack of GITCs.

As a consequence, the Company did not have effective control activities related to the design, implementation and operation of process-level control activities related to order-to-cash (including revenue, trade receivables, and deferred revenue), procure-to-pay (including operating expenses, prepaid expenses, accounts payable, and accrued liabilities), hire-to-pay (including compensation expense and accrued liabilities), long-lived assets, inventory and other financial reporting processes.

As a consequence, the Company did not effectively design, implement and operate process-level control activities related to order-to-cash (including revenue, trade receivables, and deferred revenue), procure-to-pay (including operating expenses, prepaid expenses, accounts payable, and accrued liabilities), hire-to-pay (including compensation expense and accrued liabilities), long-lived assets, inventory and other financial reporting processes.

These control deficiencies resulted in immaterial misstatements, some of which were corrected, in our consolidated financial statements as of and for the year ended December 31, 2020.

4 unchanged sentences

We, with the oversight from the Audit Committee of the Board of Directors continue to implement the remediation plans for the aforementioned material weaknesses in internal control over financial reporting as follows:

Hire, train, and retain individuals with appropriate skills and experience, assign responsibilities and hold individuals accountable for their roles related to internal control over financial reporting.

• Hire additional individuals and retain employees with appropriate skills and experience and provide further training related to internal control over financial reporting and the design and implementation of information technology solutions.

• Design and implement a comprehensive and continuous risk assessment process to identify and assess risks of material misstatement and ensure that the impacted financial reporting processes and related internal controls are properly designed and in place to respond to those risks in our financial reporting.

Design and implement additional monitoring controls to assess the consistent operation of controls, including those performed by our service providers, and to remediate deficiencies.

Design and implement general control activities over IT to support business processes.

• Implement monitoring controls to oversee the remediation and the consistent operation of control activities, including those performed by our service providers.

• Enhance information and communication processes, including through information technology solutions of which include, but are not limited to, implementing new enterprise resource planning software, to ensure that information needed for financial reporting is accurate, complete, relevant, reliable, and communicated in a timely manner.

• Design and implement GITCs, including the system development lifecycle controls, and ensure they are operating effectively to support process-level automated and manual control activities that are dependent upon information derived from IT systems.

• Enhance the design of existing control activities and implement additional process-level control activities (including controls over the order-to-cash, procure-to-pay, hire-to-pay, long-lived assets, inventory, and other financial reporting processes) and ensure they are properly evidenced and operating effectively.

We believe that these actions and the improvements we expect to achieve, when fully implemented, will strengthen our internal control over financial reporting and remediate the remaining material weaknesses.

Remediation of Material Weaknesses

Based on the remediation actions we completed and our testing of the control improvements implemented as of December 31, 2019, we believe the following material weaknesses disclosed as of December 31, 2018 no longer exist:

The company did not have effective control activities related to the design, implementation and operation of process-level control activities related to goodwill impairment expense and business combinations.

Throughout fiscal year 2019, we implemented the following measures which resulted in the remediation of these material weaknesses during the year ended December 31, 2019:

Enhanced our risk assessment process and designed and implemented our additional or improved procedures and control activities to respond to material risks in our financial reporting.

Designed and implemented additional procedures and control activities related to our business combinations process surrounding the review and use of valuation reports and our recording of purchase price accounting adjustments.

Designed and implemented enhanced procedures and internal control activities surrounding the annual goodwill impairment analysis.

We are actively engaged in remediating our remaining material weaknesses.

During 2019, progress towards remediation was made as we (i) hired additional staff to execute and monitor the additional or enhanced controls and procedures, (ii) re-organized the Technology and Information group and have, or are in process of developing roles and responsibilities for internal control activities, (iii) provided training and personal coaching, through internal and external resources, regarding performance of business process controls and over general IT control awareness, (iv) implemented a self-assessment process to facilitate awareness of internal controls throughout our company, and (v) implemented additional procedures and controls to enhance our internal control process through a combination of preventative and detective controls.

We are unable to currently estimate how long full remediation will take.

If our remedial measures are insufficient to address the material weaknesses, or if one or more additional material weaknesses in our internal controls over financial reporting are discovered, we may be required to take additional remedial measures from our plan as disclosed above.

We are committed to making further progress in our remediation efforts during 2021;

however, if our remedial measures are insufficient to address the material weaknesses, or if one or more additional material weaknesses in our internal controls over financial reporting are discovered, we may be required to take additional remedial measures from our plan as disclosed above.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during our fourth quarter of 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting except for the remediation efforts with regard to the material weaknesses described above.

Except as listed below, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during our fourth quarter of 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

During our fourth quarter, changes in our internal control over financial reporting include that we:

• implemented additional procedures and controls to enhance our internal control process through a combination of preventative and detective controls,

• developed specific roles and responsibilities for certain internal control activities of the Technology and Information group at two of our components,

• provided personal coaching regarding performance of business process controls and GITCs,

• designed and implemented certain manual controls to support the newly implemented enterprise resource planning software at two of our components;

• designed and implemented certain GITCs for the IT systems used at two of our components.

OTHER INFORMATION

7 unchanged sentences

In our opinion, because of the effect of the material weaknesses, described below, on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2019 and 2018, the related consolidated statements of operations, comprehensive loss, equity, and cash flows for each of the years in the three-year period ended December 31, 2019, and the related notes and financial statement schedules I to II (collectively, the consolidated financial statements), and our report dated February 19, 2020 expressed an unqualified opinion on those consolidated financial statements.

The Company acquired United Telecommunication Services N.V.

(UTS) during 2019, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2019, UTS’ internal control over financial reporting associated with total assets of $243.2 million and total revenue of $96.4 million included in the consolidated financial statements of the Company as of and for the year ended December 31, 2019.

Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of UTS.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive loss, equity, and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule I (collectively, the consolidated financial statements), and our report dated March 1, 2021 expressed an unqualified opinion on those consolidated financial statements.

The Company acquired AT&T Mobility Puerto Rico Inc., AT&T Mobility Virgin Islands Inc.

& Beach Holding Corporation (the AT&T Acquired Entities) during 2020, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2020, the AT&T Acquired Entities’ internal control over financial reporting associated with total assets of $2,707 million and total revenues of $174 million included in the consolidated financial statements of the Company as of and for the year ended December 31, 2020.

Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of the AT&T Acquired Entities.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.

7 unchanged sentences

The Company did not have effective control activities related to the design, implementation and operation of process-level control activities related to order-to-cash (including revenue, trade receivables, and deferred revenue), procure-to-pay (including operating expenses, prepaid expenses, accounts payable, and accrued liabilities), hire-to-pay (including compensation expense and accrued liabilities), long-lived assets, inventory, and other financial reporting processes.

• The Company did not effectively design, implement and operate process-level control activities related to order-to-cash (including revenue, trade receivables, and deferred revenue), procure-to-pay (including operating expenses,

prepaid expenses, accounts payable, and accrued liabilities), hire-to-pay (including compensation expense and accrued liabilities), long-lived assets, inventory, and other financial reporting processes.

The material weaknesses were considered in determining the nature, timing, and extent of audit tests applied in our audit of the 2020 consolidated financial statements, and this report does not affect our report on those consolidated financial statements.

17 unchanged sentences

Denver, Colorado

February 19, 2020

March 1, 2021

Report of Independent Registered Public Accounting Firm

3 unchanged sentences

We have audited the accompanying consolidated balance sheets of Liberty Latin America Ltd.

and subsidiaries (the Company) as of December 31, 2019 and 2018, the related consolidated statements of operations, comprehensive loss, equity, and cash flows for each of the years in the three-year period ended December 31, 2019, and the related notes and financial statement schedules I to II (collectively, the consolidated financial statements).

and subsidiaries (the Company) as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive loss, equity, and cash flows for each of the years in the three‑year period ended December 31, 2020, and the related notes and financial statement schedule I (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 31, 2020, in conformity with U.S.

generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 19, 2020 expressed an adverse opinion on the effectiveness of the Company’s internal control over financial reporting.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated March 1, 2021 expressed an adverse opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

1 unchanged sentence

2016-02, Leases .

As discussed in Note 2 to the consolidated financial statements, the Company has changed its method of accounting for revenue from contracts with customers as of January 1, 2018 due to the adoption of Accounting Standards Update No.

2014-09, Revenue from Contracts with Customers .

Basis for Opinion

13 unchanged sentences

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Assessment of costs capitalized into property and equipment

As discussed in Notes 3 and 9 to the consolidated financial statements, the property and equipment, net balance as of December 31, 2019 was $4,301 million.

The Company capitalizes costs associated with the construction of new cable and mobile transmission and distribution facilities, the installation of new cable services and the development of software supporting its operations.

Capitalization, rather than expensing costs, increases adjusted operating income before depreciation and amortization (Adjusted OIBDA), which is a key performance metric and segment measure used by the Company.

We identified the assessment of costs capitalized into property and equipment as a critical audit matter.

Capitalization of costs into property and equipment

As discussed in Note 3 to the consolidated financial statements, the Company capitalizes costs associated with the construction of new cable and mobile transmission and distribution facilities, the installation of new cable services and the development of software supporting its operations.

Capitalization, rather than expensing of costs, may result in a more favorable operating income (loss) in a given year.

As of December 31, 2020, the property and equipment, net balance was $4,911 million.

We identified the assessment of external costs capitalized into property and equipment as a critical audit matter.

A high degree of auditor judgment was required to assess the nature of the supporting documentation.

Third party technology related invoices can lack specificity of the item acquired or activity performed to support that the costs qualified for capitalization.

The primary procedures we performed to address this critical audit matter included the following.

We tested certain internal controls over the Company’s property and equipment process, including controls over the Company’s determination of capitalization of costs.

The following are the primary procedures we performed to address this critical audit matter.

We selected a sample of costs capitalized and inspected the related invoices.

For those invoices selected lacking specificity, we inspected additional underlying documentation, such as the related statement of work or contract.

In certain instances, we also used a professional with specialized skills and knowledge to assist in understanding the nature of the project.

We used a combination of this information to assess the costs capitalized.

Assessment of the recoverability of the carrying value of goodwill for the Panama reporting unit

As discussed in Notes 3, 6 and 9 to the consolidated financial statements, the goodwill balance as of December 31, 2019 was $4,906 million.

Of this amount, the goodwill balance attributable to the Cable & Wireless Communications (C&W) reportable segment was $4,111 million.

The Company tests for impairment of goodwill at least annually and whenever facts and circumstances indicate that the carrying value of a reporting unit might exceed its fair value.

The Company recorded an impairment to its Panama reporting unit of $182 million in 2019.

We identified the assessment of the fair value of the Panama reporting unit, which is presented within the C&W reportable segment, as a critical audit matter.

There was a high degree of auditor subjectivity required in assessing the Company’s development of the adjusted market multiple applied to the Panama reporting unit trailing twelve months total Adjusted OIBDA.

The Panama adjusted market multiple was sensitive to minor changes which could have a significant impact on the estimated fair value.

The primary procedures we performed to address this critical audit matter included the following.

We tested certain internal controls over the Company’s goodwill impairment assessment process, including controls related to the development of the market multiple for the Panama reporting unit.

We involved a valuation professional with specialized skills and knowledge who assisted in testing the adjusted market multiple applied to the trailing twelve months total Adjusted OIBDA of the Panama reporting unit.

This was done by comparing the reporting unit’s adjusted market multiple to similar observable transactions where public information was available.

Valuation of goodwill for certain reporting units

As discussed in Note 3 to the consolidated financial statements, the Company tests for impairment of goodwill at least annually and whenever facts and circumstances indicate that the carrying value of a reporting unit might exceed its fair value.

Fair value of each reporting unit was measured using an income approach, utilizing a discounted cash flow model valuation technique.

As of December 31, 2020, the goodwill balance was $4,886 million and the Company recorded impairments totaling $276 million.

We identified the assessment of the fair value of certain reporting units as a critical audit matter.

There was a high degree of subjective auditor judgment required in assessing the Company’s key assumptions in measuring the fair value.

Depending on the reporting unit, the key assumptions were projected revenues, projected direct costs, projected operating expenses, projected capital expenditures, discount rates and terminal growth rates.

For these reporting units, certain valuations were sensitive to minor changes in these inputs which could have a significant impact on the estimated fair value.

The following are the primary procedures we performed to address this critical audit matter.

We performed procedures to test the projected revenues, direct costs, operating expenses, and capital expenditures by comparing them with the historical results of the respective reporting unit and assessing the impacts of internal and/or external economic factors considering the available information.

We involved valuation professionals with specialized skills and knowledge, who assisted in:

evaluating the discount rates used in the valuations by comparing them against independently developed discount rates using publicly available market data;

evaluating the terminal growth rates used in the valuations by comparing them to publicly available market data, and comparing the implied market multiples from the Company’s fair value estimates using the income approach to the observed range of market multiples derived from comparable companies.

Preliminary valuation of property and equipment and intangible assets associated with the acquisition of the AT&T Acquired Entities

As discussed in Note 4 to the consolidated financial statements, the Company acquired the wireless and wireline operations of AT&T, Inc.

located in Puerto Rico and the U.S.

Virgin Islands on October 31, 2020, for consideration of $1,931 million.

Based on the preliminary allocation of the purchase price, the Company recorded $711 million of acquired property and equipment, $1,329 million of acquired intangible assets, including $894 million of spectrum, and $83 million of customer relationships.

The information that was available to the Company to allocate consideration to the acquired property and equipment and intangible assets was affected by the proximity of the acquisition date to the Company’s fiscal year-end date of December 31, 2020.

As a result, the Company determined the preliminary fair value of property and equipment based on the historical cost basis of AT&T, Inc., the acquired spectrum intangible asset based on a range of prices indicated by an initial analysis of available market data, and the customer relationships based on a multi-period excess earnings method.

Key assumptions used to value the customer relationships included the discount rate and required rates of return on property and equipment (including return of and on) and spectrum intangible assets.

We identified the preliminary valuation of the acquired intangible assets of spectrum and customer relationships along with property and equipment associated with the acquisition of the AT&T Acquired Entities as a critical audit matter.

Due to the extent of the information available as of the end of the reporting period, evaluating the preliminary valuation of these intangible assets and property and equipment involved a high degree of auditor judgment.

Testing the key assumptions used to estimate the fair value of the customer relationship intangible assets, also involved a high degree of auditor judgment due to its sensitivity to changes in the key assumptions.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the critical audit matter.

This included controls related to the determination of the preliminary fair value of the acquired intangible assets and property and equipment and

the development of the key assumptions noted above.

Based on the consideration and extent of the information available as of the end of the reporting period, we evaluated the reasonableness of the preliminary fair value of the acquired intangible assets and property and equipment.

We involved a valuation professional with specialized skills and knowledge who assisted in:

• evaluating the discount rate used to determine the preliminary fair value of the customer relationships acquired by comparing the Company’s inputs to the discount rate to publicly available data for comparable entities and assessing the resulting discount rate, and

• evaluating the required rates of return on property and equipment (including return of and on) and spectrum intangible assets used to estimate the preliminary fair value of the customer relationships acquired by assessing the required rates of return considering the weighted-average cost of capital and the implied rate of return of the transaction.

We have served as the Company’s auditor since 2016.

Denver, Colorado

February 19, 2020

March 1, 2021

LIBERTY LATIN AMERICA LTD.

6 unchanged sentences

Total current assets 1,951.9 2,055.2

Goodwill 4,885.5 4,906.4

Property and equipment, net 4,911.4 4,301.1

2 unchanged sentences

Intangible assets not subject to amortization

1,465.6 560.8

Other assets, net 1,139.4 872.6

Total assets $ 15,230.0 $ 14,937.5

The accompanying notes are an integral part of these consolidated financial statements.

9 unchanged sentences

Accrued payroll and employee benefits 97.8 88.9

Derivative instruments 90.2 35.4

Other accrued and current liabilities 612.6 559.3

9 unchanged sentences

500,000,000 shares authorized;

48,795,552 and 48,501,803 shares issued and outstanding, respectively

49,303,401 and 49,009,585 shares issued and outstanding, respectively, at December 31, 2020 and 48,795,552 shares issued and outstanding at December 31, 2019

Class B, $ 0.01 par value;

50,000,000 shares authorized;

1,934,686 and 1,935,949 shares issued and outstanding, respectively

1,932,386 shares issued and outstanding at December 31, 2020 and 1,934,686 shares issued and outstanding at December 31, 2019

Class C, $ 0.01 par value;

500,000,000 shares authorized;

131,181,371 and 130,526,158 shares issued and outstanding, respectively

181,786,924 and 181,113,766 shares issued and outstanding, respectively, at December 31, 2020 and 131,181,371 shares issued and outstanding at December 31, 2019

Undesignated preference shares, $ 0.01 par value;

1 unchanged sentence

nil shares issued and outstanding at each period

Treasury shares, at cost;

966,974 and nil shares, respectively

Additional paid-in capital

4,982.0 4,569.9

Accumulated deficit ( 2,134.5 ) ( 1,447.1 )

2 unchanged sentences

Noncontrolling interests 729.0 870.1

Total equity 3,443.7 3,979.9

Total liabilities and equity $ 15,230.0 $ 14,937.5

3 unchanged sentences

Year ended December 31,

2020 2019 2018

in millions, except per share amounts

Revenue $ 3,764.6 $ 3,867.0 $ 3,705.7

Operating costs and expenses (exclusive of depreciation and amortization, shown separately below):

Programming and other direct costs of services

Other operating

Selling, general and administrative ( SG&A )

846.0 877.8 877.2

Other operating costs and expenses 1,531.4 1,505.3 1,441.3

Business interruption loss recovery — — ( 59.5 )

Depreciation and amortization

914.6 871.0 829.8

Impairment, restructuring and other operating items, net

380.9 259.1 640.5

3,672.9 3,513.2 3,729.3

Operating income (loss) 91.7 353.8 ( 23.6 )

5 unchanged sentences

Other income (expense), net 0.1 14.3 ( 0.1 )

( 929.9 ) ( 634.4 ) ( 561.1 )

Loss before income taxes ( 838.2 ) ( 280.6 ) ( 584.7 )

Income tax benefit (expense) 29.3 98.2 ( 51.1 )

Net loss ( 808.9 ) ( 182.4 ) ( 635.8 )

Net loss attributable to noncontrolling interests 121.7 102.3 290.6

1 unchanged sentence

Basic and diluted net loss per share attributable to Liberty Latin America shareholders

$ ( 3.51 ) $ ( 0.43 ) $ ( 1.96 )

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

Year ended December 31,

2020 2019 2018

Net loss $ ( 808.9 ) $ ( 182.4 ) $ ( 635.8 )

Other comprehensive earnings (loss), net of taxes:

1 unchanged sentence

Reclassification adjustments included in net loss

0.6 ( 3.0 ) 2.2

Pension-related adjustments and other, net

1 unchanged sentence

Comprehensive loss

( 920.5 ) ( 181.2 ) ( 596.4 )

Comprehensive loss attributable to noncontrolling interests

122.5 102.6 291.9

Comprehensive loss attributable to Liberty Latin America shareholders

$ ( 798.0 ) $ ( 78.6 ) $ ( 304.5 )

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF EQUITY

Liberty Latin America shareholders

Non- controlling

Common shares

Additional paid-in capital

Accumulated net contributions (distributions)

Accumulated deficit

comprehensive

Total Liberty Latin America shareholders

Balance at January 1, 2017

Other comprehensive loss

Change in capitalization in connection with the Split-Off

C&W Barbados NCI Acquisition

Distributions to noncontrolling interest owners

Distributions to Liberty Global

Shared-based compensation

Balance at December 31, 2017

The accompanying notes are an integral part of these consolidated financial statements.

LIBERTY LATIN AMERICA LTD.

CONSOLIDATED STATEMENTS OF EQUITY – (Continued)

Liberty Latin America shareholders

Non-controlling

Common shares

Additional paid-in capital

Accumulated deficit

Liberty Latin America shareholders Non- controlling

interests Total equity

Common shares Additional paid-in capital Accumulated deficit Accumulated

comprehensive

Total Liberty Latin America shareholders

net of taxes Total Liberty Latin America shareholders

Class A Class B Class C

Balance at January 1, 2018 $ 0.5 $ — $ 1.2 $ 4,402.8 $ ( 1,010.7 ) $ ( 64.2 ) $ 3,329.6 $ 1,361.0 $ 4,690.6

1 unchanged sentence

Balance at January 1, 2018, as adjusted for accounting change 0.5 — 1.2 4,402.8 ( 1,021.8 ) ( 64.2 ) 3,318.5 1,364.6 4,683.1

Net loss — — — — ( 345.2 ) — ( 345.2 ) ( 290.6 ) ( 635.8 )

Other comprehensive earnings — — — — — 40.7 40.7 ( 1.3 ) 39.4

5 unchanged sentences

Shared-based compensation — — — 35.2 — — 35.2 1.1 36.3

Other — — — 1.6 — — 1.6 — 1.6

Balance at December 31, 2018 $ 0.5 $ — $ 1.3 $ 4,494.1 $ ( 1,367.0 ) $ ( 16.3 ) $ 3,112.6 $ 1,010.8 $ 4,123.4

2 unchanged sentences

CONSOLIDATED STATEMENTS OF EQUITY – (Continued)

Liberty Latin America shareholders

Non-controlling

Common shares

Additional paid-in capital

Accumulated deficit

Liberty Latin America shareholders Non-controlling

interests Total equity

Common shares Additional paid-in capital Accumulated deficit Accumulated

comprehensive

Total Liberty Latin America shareholders

net of taxes Total Liberty Latin America shareholders

Class A Class B Class C

Balance at January 1, 2019 $ 0.5 $ — $ 1.3 $ 4,494.1 $ ( 1,367.0 ) $ ( 16.3 ) $ 3,112.6 $ 1,010.8 $ 4,123.4

Net loss — — — — ( 80.1 ) — ( 80.1 ) ( 102.3 ) ( 182.4 )

Other comprehensive earnings — — — — — 1.5 1.5 ( 0.3 ) 1.2

2 unchanged sentences

Conversion Option, net — — — 77.3 — — 77.3 — 77.3

Capped Calls — — — ( 45.6 ) — — ( 45.6 ) — ( 45.6 )

UTS NCI Acquisition — — — 0.1 — — 0.1 ( 11.7 ) ( 11.6 )

Share-based compensation — — — 44.0 — — 44.0 — 44.0

Other — — — — — — — ( 0.3 ) ( 0.3 )

Balance at December 31, 2019 $ 0.5 $ — $ 1.3 $ 4,569.9 $ ( 1,447.1 ) $ ( 14.8 ) $ 3,109.8 $ 870.1 $ 3,979.9

1 unchanged sentence

LIBERTY LATIN AMERICA LTD.

CONSOLIDATED STATEMENTS OF EQUITY – (Continued)

Liberty Latin America shareholders Non-controlling

interests Total equity

Common shares Treasury Stock Additional paid-in capital Accumulated deficit Accumulated

comprehensive

net of taxes Total Liberty Latin America shareholders

Class A Class B Class C

Balance at January 1, 2020 $ 0.5 $ — $ 1.3 $ — $ 4,569.9 $ ( 1,447.1 ) $ ( 14.8 ) $ 3,109.8 $ 870.1 $ 3,979.9

Accounting change (note 2) — — — — — ( 0.2 ) — ( 0.2 ) 0.2 —

Balance at January 1, 2020, as adjusted for accounting change 0.5 — 1.3 — 4,569.9 ( 1,447.3 ) ( 14.8 ) 3,109.6 870.3 3,979.9

Net loss — — — — — ( 687.2 ) — ( 687.2 ) ( 121.7 ) ( 808.9 )

Other comprehensive loss — — — — — — ( 110.8 ) ( 110.8 ) ( 0.8 ) ( 111.6 )

Repurchase of Liberty Latin America common shares — — — ( 9.5 ) — — — ( 9.5 ) — ( 9.5 )

Issuance of Liberty Latin America common shares, net — — 0.5 — 344.6 — — 345.1 — 345.1

Distributions to noncontrolling interest owners — — — — — — — — ( 18.8 ) ( 18.8 )

Share-based compensation — — — — 66.6 — — 66.6 — 66.6

Other — — — — 0.9 — — 0.9 — 0.9

Balance at December 31, 2020 $ 0.5 $ — $ 1.8 $ ( 9.5 ) $ 4,982.0 $ ( 2,134.5 ) $ ( 125.6 ) $ 2,714.7 $ 729.0 $ 3,443.7

The accompanying notes are an integral part of these consolidated financial statements.

LIBERTY LATIN AMERICA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended December 31,

2020 2019 2018

Cash flows from operating activities:

Net loss $ ( 808.9 ) $ ( 182.4 ) $ ( 635.8 )

Adjustments to reconcile net loss to net cash provided by operating activities:

1 unchanged sentence

Depreciation and amortization 914.6 871.0 829.8

Impairment 283.1 199.4 615.7

Amortization of debt financing costs, premiums and discounts, net 30.4 16.8 ( 0.3 )

9 unchanged sentences

Net cash provided by operating activities

640.1 918.2 816.8

Cash flows from investing activities:

5 unchanged sentences

Net cash used by investing activities

$ ( 2,450.8 ) $ ( 635.3 ) $ ( 980.5 )

The accompanying notes are an integral part of these consolidated financial statements.

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Year ended December 31,

2020 2019 2018

Cash flows from financing activities:

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Payments of principal amounts of debt and finance lease obligations ( 1,439.4 ) ( 1,275.9 ) ( 925.2 )

Issuance of Liberty Latin America common shares, net 347.0 — —

Net cash received (paid) related to derivative instruments 182.5 ( 0.3 ) 10.0

Capped Calls — ( 45.6 ) —

Distributions to noncontrolling interest owners ( 18.8 ) ( 37.7 ) ( 22.7 )

Payment of financing costs and debt premiums ( 99.0 ) ( 55.1 ) ( 39.3 )

Repurchase of Liberty Latin America common shares ( 9.5 ) — —

Cash payments for the acquisition of noncontrolling interest ( 5.6 ) ( 5.1 ) ( 20.9 )

Capital contributions from noncontrolling interest owner — — 18.0

Distributions to Liberty Global, net

Other financing activities, net ( 5.1 ) ( 7.4 ) 0.9

Net cash provided by financing activities

271.1 1,539.8 256.1

Effect of exchange rate changes on cash, cash equivalents and restricted cash ( 4.9 ) ( 7.7 ) ( 18.6 )

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Beginning of year

2,457.0 642.0 568.2

$ 912.5 $ 2,457.0 $ 642.0

Cash paid for interest $ 484.3 $ 444.9 $ 418.2

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Liberty Latin America Ltd.

( Liberty Latin America ) is a registered company in Bermuda that primarily includes (i) Cable & Wireless Communications Limited ( C&W ) and its subsidiaries, (ii) VTR Finance B.V.

( VTR Finance ) and its subsidiaries, which include VTR.com SpA ( VTR ), (iii) Leo Cable LP ( Leo Cable ) and its subsidiaries, which includes Liberty Cablevision of Puerto Rico LLC ( LCPR ), collectively “ Liberty Puerto Rico ” , and (iv) LBT CT Communications, S.A.

(a less than wholly-owned entity) and its subsidiary, Cabletica (as defined in note 4 ).

C&W owns less than 100% of certain of its consolidated subsidiaries, including The Bahamas Telecommunications Company Limited ( C&W Bahamas ), Cable & Wireless Jamaica Limited ( C&W Jamaica ), and Cable & Wireless Panama, S.A.

( C&W Panama ).

For information regarding the percentages of certain of our less than wholly-owned consolidated subsidiaries, see Part II, Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview.

( Liberty Latin America ) is a registered company in Bermuda that primarily includes:

(i) Cable & Wireless Communications Limited and its subsidiaries (collectively C&W ), which includes Cable & Wireless Panama, S.A.

(ii) VTR Finance N.V.

and its subsidiaries (collectively VTR );

(iii) Liberty Communications PR Holding LP ( Liberty Communications ) and its subsidiaries (collectively Liberty Puerto Rico ), which include Liberty Communications of Puerto Rico LLC ( LCPR ) and, as of October 31, 2020 and as further described in note 4, Liberty Mobile Inc.

( Liberty Mobile ) and its subsidiaries;

(iv) LBT CT Communications, S.A.

(a less than wholly-owned entity) and its subsidiary, Cabletica S.A.

( Cabletica ).

VTR, Liberty Communications and LCPR were formerly known as VTR Finance B.V., Leo Cable LP and Liberty Cablevision of Puerto Rico LLC, respectively.

We are an international provider of fixed, mobile and subsea telecommunications services.

We provide residential and business-to-business ( B2B ) services in (i) over 20 countries across Latin America and the Caribbean through two of our reportable segments, “ C&W Caribbean and Networks ” and “ C&W Panama ”, (ii) Chile and Costa Rica, through our reportable segment, “ VTR/Cabletica ”, and (iii) Puerto Rico, through our reportable segment, Liberty Puerto Rico.

Through our “ Networks & LatAm ” business, C&W Caribbean and Networks also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region.

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ( U.S.

GAAP ) and include the historical financial information of (i) certain former subsidiaries of Liberty Global plc ( Liberty Global ) for periods prior to the Split-Off , as defined below, and (ii) Liberty Latin America and its consolidated subsidiaries for the period following the Split-Off .

Although Liberty Latin America was previously reported on a combined basis, these financial statements present all prior periods as consolidated.

In these notes, the terms “ we ,” “ our ,” “ our company ” and “ us ” may refer, as the context requires, to Liberty Latin America or collectively to Liberty Latin America and its subsidiaries.

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) dollars are calculated as of December 31, 2020.

We are an international provider of fixed, mobile and subsea telecommunications services.

We provide residential and business-to-business ( B2B ) services in (i) over 20 countries, primarily in Latin America and the Caribbean, through C&W , (ii) Chile and Costa Rica, through VTR/Cabletica , and (iii) Puerto Rico, through Liberty Puerto Rico .

Through our “ Networks & LatAm ” business, C&W also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region.

LiLAC Transaction

On July 1, 2015, Liberty Global completed the “ LiLAC Transaction ,” pursuant to which each holder of Class A, Class B and Class C Liberty Global ordinary shares ( Liberty Global Shares ) received one share of the corresponding class of its “ LiLAC Shares ” for each 20 Liberty Global Shares held as of the record date for such distribution.

Accordingly, Liberty Global issued 12,625,362 Class A, 523,626 Class B and 30,776,883 Class C LiLAC Shares upon the completion of the LiLAC Transaction .

The LiLAC Shares were tracking shares, which were intended to reflect or “track” the economic performance of Liberty Global ’s “ LiLAC Group ” rather than the economic performance of Liberty Global as a whole.

The LiLAC Group comprised the same entities as Liberty Latin America at the time of the Split-Off (as defined below).

As further described below, in connection with the Split-Off , the LiLAC Shares were effectively replaced by corresponding classes of Liberty Latin America common shares.

Split-Off of Liberty Latin America from Liberty Global

On December 29, 2017 (the Split-Off Distribution Date ), Liberty Global completed its previously announced split-off (the Split-Off ) of its former wholly-owned subsidiary, Liberty Latin America .The Split-Off was accomplished by (i) the distribution by Liberty Global to holders of its LiLAC Shares of all of the Company’s common shares and (ii) immediately following the distribution, the LiLAC Shares were redesignated as deferred shares (with virtually no economic rights) and those deferred shares were transferred for no consideration to a third-party designee, in each case, in accordance with Liberty Global ’s articles of association and applicable law.

Pursuant to the Split-Off , Liberty Global distributed to holders of its LiLAC Shares , as a dividend, (i) one Class A common share of the Company for each Class A LiLAC ordinary share, (ii) one Class B common share of the Company for each Class B LiLAC ordinary share and (iii) one Class C common share of the Company for each Class C LiLAC ordinary share, in each case, held by such holder as of the Split-Off Distribution Date .

In the Split-Off , 48,428,841 Class A common shares, 1,940,193 Class B common shares and 120,843,539 Class C common shares of Liberty Latin America were issued (collectively, Liberty Latin America Shares ).

As a result of the Split-Off , Liberty Latin America is an independent, publicly traded company.

The Split-Off was accounted for at historical cost due to the pro rata distribution of Liberty Latin America Shares to holders of Liberty Global ’s LiLAC Shares .

(2) Accounting Changes and Recent Accounting Pronouncements

Accounting Changes

In December 2019, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) No.

2019-12, Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes ( ASU 2019-12 ), which (i) simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods, and (ii) reduces the complexity in certain areas of existing tax guidance, including the recognition of deferred taxes for tax goodwill and allocating taxes to members of a consolidated group.

We early adopted ASU 2019-12 effective December 31, 2020 and it did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU No.

2018-15, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

Accounting Changes and Recent Accounting Pronouncements

Accounting Changes

In February 2016, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) No.

( ASU 2018-15 ).

ASU 2018-15 provides additional guidance on ASU No.

2015-05, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license.

ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license).

The guidance (i) provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense, (ii) requires an entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement and (iii) clarifies the presentation requirements for reporting such costs in the entity’s financial statements.

We adopted ASU 2018-15 effective January 1, 2020 on a prospective basis for all implementation costs incurred after the date of adoption and it did not have a material impact on our consolidated financial statements.

In June 2016, the FASB issued ASU No.

2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments ( ASU 2016-13 ), as amended by (i) ASU No.

2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842):

Effective Dates , which amended certain effective dates, and (ii) ASU No.

2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies guidance around how to report expected recoveries.

ASU 2016-13 replaces the incurred loss impairment methodology for recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.

We are required to use a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments.

We adopted ASU 2016-13 effective January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to retained earnings to align our credit loss methodology with the new standard.

The comparative information has not been restated and continues to be reported under the accounting standards in effect for that period.

Under the new model, we segment our receivables, unbilled revenue and contract assets based on days past due and record an allowance for current expected credit losses using average rates applied against each account’s applicable aggregate balance for each aging bucket.

We establish the average rates based on consideration of the actual credit loss experience over the prior 12-month period, recent collection trends, current economic conditions and reasonable expectations of future payment delinquency.

The cumulative effect of the changes to our consolidated balance sheet as of January 1, 2020 was not material.

In February 2016, the FASB issued ASU No.

2016-02, Leases ( ASU 2016-02 ), as amended by ASU No.

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We do not believe such controls represent significant changes to our internal control over financial reporting.

For information regarding changes to our accounting policies following the adoption of ASU 2016-02 , see note 3 .

The cumulative effect of the changes made to our consolidated balance sheet as of January 1, 2019 is as follows:

Balance at December 31, 2018

Cumulative catch up adjustments upon adoption

Balance at January 1, 2019

Other assets, net

Other accrued and current liabilities

Other long-term liabilities

In August 2018, the FASB issued ASU No.

2018-13, Fair Value Measurement (Topic 820):

Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ( ASU 2018-13 ).

ASU 2018-13 modifies certain disclosure requirements on fair value measurements, including (i) clarifying narrative disclosure regarding measurement uncertainty from the use of unobservable inputs, if those inputs reasonably could have been different as of the reporting date, (ii) adding certain quantitative disclosures, including (a) changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and (iii) removing certain fair value measurement disclosure requirements, including (a) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (b) the policy for timing of transfers between levels of the fair value hierarchy and (c) the valuation processes for Level 3 fair value measurements.

The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

We are permitted to early adopt any removed or modified disclosures and delay

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

adoption of the additional disclosures until their effective date.

As of December 31, 2018, we early adopted the portion of ASU 2018-13 that allows for the removal of certain fair value measurement disclosures from our consolidated financial statements.

We do not expect the remaining disclosure requirements of ASU 2018-13 will have a material effect on our consolidated financial statements.

For information regarding our accounting policies for leases following the adoption of ASU 2016-02, see note 3.

In May 2014, the FASB issued ASU No.

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We applied the new standard to contracts that were not complete as of January 1, 2018.

The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The most significant impacts of ASU 2014-09 on our revenue recognition policies relate to our accounting for (i) long-term capacity contracts, (ii) subsidized handset plans and (iii) certain installation and other upfront fees, each as set forth below:

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We do not believe such new controls represent significant changes to our internal control over financial reporting.

For information regarding changes to our accounting policies following the adoption of ASU 2014-09 and our contract assets and deferred revenue balances, see note 3 .

For information regarding our accounting policies for revenue following the adoption of ASU 2014-09 and our contract assets and deferred revenue balances, see note 3.

For our disaggregated revenue by product, see note 21.

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December 31, 2020, 2019 and 2018

The cumulative effect of the changes made to our consolidated balance sheet as of January 1, 2018 is as follows:

Balance at December 31, 2017

Cumulative catch up adjustments upon adoption

Balance at January 1, 2018

Other current assets

Other assets, net

Deferred revenue

Other long-term liabilities

Accumulated deficit

Noncontrolling interests

The impact of our adoption of ASU 2014-09 to our consolidated statement of operations for the year ended December 31, 2018 is as follows:

Before adoption of ASU 2014-09

Impact of ASU 2014-09

Increase (decrease)

Operating costs and expenses – selling, general and administrative

Non-operating expense – interest expense

Before adoption of ASU 2014-09 Impact of ASU 2014-09

Increase (decrease) As reported

Revenue $ 3,697.3 $ 8.4 $ 3,705.7

Other operating costs and expenses $ 1,442.0 $ ( 0.7 ) $ 1,441.3

Non-operating expenses – interest expense $ 424.6 $ 19.1 $ 443.7

Income tax expense $ 52.6 $ ( 1.5 ) $ 51.1

Net loss $ 627.3 $ 8.5 $ 635.8

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU No.

2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments ( ASU 2016-13 ), as amended by (i) ASU No.

2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842):

Effective Dates , which amended certain effective dates, and (ii) ASU No.

2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies guidance around how to report expected recoveries.

We will be required to use a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments.

ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted.

Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard.

We do not expect the adoption of ASU 2016-13 will have a material impact on our consolidated financial statements.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

In August 2018, the FASB issued ASU No.

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ASU 2018-14 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted.

We are currently evaluating the effect that ASU 2018-14 will have on our disclosures.

ASU 2018-14 will not have a material impact on our consolidated financial statements.

ASU 2020-04 and ASU 2021-01

In March 2020, the FASB issued ASU No.

2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting ( ASU 2020-04 ), which provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates, such as the London Inter-Bank Offered Rate ( LIBOR ), which regulators in the United Kingdom ( U.K.

) have announced will be phased out by the end of 2021.

In January 2021, the FASB issued ASU No.

2021-01, Reference Rate Reform (Topic 848) ( ASU 2021-01 ), which clarifies certain optional expedients and exceptions in ASC 848.

The expedients and exceptions provided by ASU 2020-04 and ASU 2021-01 are for the application of U.S.

GAAP to contracts, hedging relationships and other transactions affected by the rate reform, and will not be available after December 31, 2022, other than for certain hedging relationships entered into before December 31, 2022.

We do not currently expect that the phase out of LIBOR will have a material impact on our consolidated financial statements.

In August 2020, the FASB issued ASU No.

2018-15, Intangibles—Goodwill and Other—Internal-Use Software—Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ( ASU 2018-15 ).

ASU 2018-15 provides additional guidance on ASU No.

ASU 2018-15 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted.

We will apply ASU 2018-15 prospectively to all implementation costs incurred after the date of adoption and do not expect it will have a material impact on our consolidated financial statements.

In December 2019, the FASB issued ASU No.

2019-12, Income Taxes (Topic 740):

ASU 2019-12 is effective for annual reporting periods after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted.

Although we are currently evaluating the effect that ASU 2019-12 will have on our consolidated financial statements, we do not expect it will have a material impact.

2020-06, Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity:

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ( ASU 2020-06 ), which (i) reduces the number of accounting models for convertible instruments and allows more contracts to qualify for equity classification and (ii) makes targeted improvements to convertible instruments and earnings-per-share disclosure requirements.

ASU 2020-06 is effective for annual reporting periods after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted, but no earlier than annual and interim periods in fiscal years beginning after December 15, 2020.

While we are still evaluating the impact of ASU 2020-06, we do not currently expect it will have a material impact on our consolidated financial statements.

(3) Summary of Significant Accounting Policies

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GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

Estimates and assumptions are used in accounting for, among other things, the valuation of acquisition-related assets and liabilities, allowances for uncollectible accounts, programming and copyright expenses, deferred income taxes and related valuation allowances, loss contingencies, fair value measurements, impairment assessments, capitalization of internal costs associated with construction and installation activities, useful lives of long-lived assets and actuarial liabilities associated with certain benefit plans.

Actual results could differ from those estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

Estimates and assumptions are used in accounting for, among

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

other things, the valuation of acquisition-related assets and liabilities, allowances for credit losses, programming and copyright expenses, deferred income taxes and related valuation allowances, loss contingencies, fair value measurements, impairment assessments, capitalization of internal costs associated with construction and installation activities, useful lives of long-lived assets and actuarial liabilities associated with certain benefit plans.

Actual results could differ from those estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

During 2020, we changed the presentation of certain operating costs and expenses in our consolidated statements of operations in order to better align with management’s approach to monitoring and evaluating such costs.

Specifically, we have combined the costs previously reported in the consolidated statement of operations’ captions “other operating” and “selling, general and administrative” into one line, which is now referred to as “other operating costs and expenses.” In conjunction with this change, we have provided additional disclosure of the nature of other operating costs and expenses by function, as set forth in note 14.

This change in presentation did not have any impact on operating income or loss, net loss or any of our key performance metrics.

In addition, we have provided additional disclosure of the nature of our programming and other direct costs of services, as set forth in note 13.

Principles of Consolidation

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Intercompany accounts have been eliminated in consolidation.

Cash and Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Cash equivalents consist of money market funds and other investments that are readily convertible into cash and have maturities of three months or less at the time of acquisition.

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At December 31, 2020 and 2019, our current and long-term restricted cash balances aggregated $ 18 million and $ 1,273 million, respectively.

For additional information regarding restricted cash that was used during 2020 to partially fund the AT&T Acquisition, see note 10.

Our current restricted cash balances are included in other current assets, net, in our consolidated balance sheets.

For further information on certain of our restricted cash, see note 10 .

Trade Receivables

Our trade receivables are reported net of an allowance for doubtful accounts.

The allowance for doubtful accounts is based upon our assessment of probable loss related to uncollectible accounts receivable.

We use a number of factors in determining the allowance, including, among other things, collection trends, prevailing and anticipated economic conditions and specific customer credit risk.

The allowance is maintained until either payment is received or the likelihood of collection is considered to be remote.

We have trade and note receivables that are each reported net of an allowance for credit losses.

Our notes receivable, which we maintain following the closing of the AT&T Acquisition, consist of equipment installment-plan ( EIP ) receivables due from customers under contracts over a period of up to 30 months.

The short and long-term portions of our notes receivable, net of allowance, are incurred in other current assets, net and other assets, net, respectively, in our consolidated balance sheets.

The allowances on each of our trade and notes receivable are established using our best estimates of current expected credit losses based upon, among other things, actual credit loss experience over the prior 12-month period, recent collection trends, prevailing and anticipated economic conditions and specific customer credit risk.

Receivables outstanding greater than 30 days are considered past due and we generally write-off receivables after they become past due for 365 days, with the exception of amounts due from certain governments.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

The changes in our trade receivables allowance for credit losses are set forth below:

Year ended December 31,

2020 2019 2018

Beginning balance $ 87.3 $ 144.4 $ 142.2

Provision for expected losses 62.6 61.8 52.6

Write-offs ( 60.3 ) ( 113.9 ) ( 48.5 )

Foreign currency translation adjustments and other 10.4 ( 5.0 ) ( 1.9 )

Ending balance $ 100.0 $ 87.3 $ 144.4

The change in our notes receivable allowance for credit losses for the year ended December 31, 2020 are set forth below (in millions):

Beginning balance $ —

Additions upon acquisition 14.9

Provision for expected losses 1.3

Ending balance $ 16.2

Concentration of credit risk with respect to trade receivables is limited due to the large number of customers and their dispersion across many different countries, with the exception of $ 72 million and $ 89 million at December 31, 2020 and 2019, respectively, due from a single government.

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When indicators of impairment exist, we estimate the fair value and record an impairment charge if the carrying value of the investment exceeds its estimated fair value.

Any impairment charges are recorded in other income (expense), net, in our consolidated statement of operations.

Any impairment charges are recorded in other income (expense), net, in our consolidated statements of operations.

We account for our investment in United Kingdom ( U.K.

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Available-for-sale securities are measured at fair value.

Changes in the fair value of available-for-sale securities are reflected in other comprehensive income or loss until sold or other-than-temporarily impaired, at which time the amounts are reclassified from accumulated other comprehensive income or loss into non-operating income or expense in our consolidated statement of operations.

For additional information regarding our fair value measurements, see note 6.

For additional information regarding these investments, see notes 7 and 15 .

For additional information regarding our investment in TSTT and the U.K.

Government Gilts, see notes 7 and 16, respectively.

Financial Instruments

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Derivative Instruments Recorded at Fair Value

Most of our derivative instruments, whether designated as hedging relationships or not, are recorded on the consolidated balance sheets at fair value.

Our derivative instruments, excluding our weather derivative contracts ( Weather Derivatives ), as discussed below, are recorded on our consolidated balance sheets at fair value, whether designated as a hedge or not.

If the derivative instrument is not designated as a hedge, changes in the fair value of the derivative instrument are recognized in earnings.

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With the exception of certain foreign currency forward contracts, we do not apply hedge accounting to our derivative instruments.

The net cash received or paid related to our derivative instruments is classified as an operating, investing or financing activity in our consolidated statements of cash flows based on the objective of the derivative instrument and the classification of the applicable underlying cash flows.

For cross-currency and interest rate derivative contracts, the net cash paid or received related to current interest is classified as an operating activity in our consolidated statements of cash flows.

For cross-currency derivative contracts, the net cash paid or received related to principal is classified as a financing activity in our consolidated statements of cash flows.

For foreign currency forward contracts that are used to hedge capital expenditures, the net cash paid or received is classified as an adjustment to capital expenditures in our consolidated statements of cash flows.

For foreign currency forward contracts that are used to hedge principal exposure on foreign currencies, the net cash paid or received is classified as a financing activity in our consolidated statements of cash flows.

For derivative contracts that are terminated prior to maturity, the cash paid or received upon termination that relates to future periods is classified as a financing activity in our consolidated statements of cash flows.

• Cross-currency and interest rate derivative contracts:

The net cash paid or received related to principal and current interest is classified as a financing or operating activity, respectively.

• Foreign currency forward contracts that are used to hedge capital expenditures:

The net cash paid or received is reflected in capital expenditures, which are classified as an investing activity.

• Foreign currency forward contracts that are used to hedge principal exposure on foreign currencies:

The net cash paid or received is classified as a financing activity.

• Derivative contracts that are terminated prior to maturity:

The cash paid or received upon termination that relates to future periods is classified as a financing activity.

Weather Derivatives

Our weather derivative contracts ( Weather Derivatives ) are not accounted for at fair value.

The premiums paid associated with the Weather Derivatives are recorded in other current assets, net, in our consolidated balance sheet, and the amortization of the premiums is included in realized and unrealized gains (losses) on derivative instruments, net, in our consolidated statement of operations.

The cash paid associated with the premiums is classified as an operating activity in our consolidated statement of cash flows.

Our Weather Derivatives provide us with insurance coverage for certain weather-related events and are not accounted for at fair value.

The premiums paid associated with the Weather Derivatives are recorded in other current assets, net, in our consolidated balance sheets, and the amortization of the premiums is included in realized and unrealized gains or losses on derivative instruments, net, in our consolidated statements of operations.

The cash paid associated with the premiums is classified as an operating activity in our consolidated statements of cash flows.

In the event of a payout under our Weather Derivatives, the cash received would be classified as an operating activity in our consolidated statements of cash flows.

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The costs of other customer-facing activities, such as reconnecting and disconnecting customer locations and repairing or maintaining drops, are expensed as incurred.

Interest capitalized with respect to construction activities was not material during any of the periods presented.

We capitalize internal and external costs directly associated with the development of internal-use software.

Capitalized internal-use software is included as a component of property and equipment.

We also capitalize costs associated with the purchase of software licenses.

Software obtained in a hosting arrangement is expensed as incurred over the life of the service contract, unless we have the right to take possession of the software at any time without significant penalty and it is feasible to run the software

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

on our own hardware or contract with another party unrelated to the vendor to host the software.

We capitalize internal and external costs directly associated with the development of internal-use software.

Capitalized internal-use software is included as a component of property and equipment.

We also capitalize costs associated with the purchase of software licenses.

Costs associated with software obtained in a hosting arrangement are expensed over the life of the service contract, unless we have the right to take possession of the software at any time without significant penalty and it is feasible to run the software on our own hardware or contract with another party unrelated to the vendor to host the software.

Maintenance and training costs, as well as costs incurred during the preliminary stage of an internal-use software development project, are expensed as incurred.

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Intangible Assets

Our primary intangible assets relate to goodwill, customer relationships and cable television franchise rights.

Our primary intangible assets relate to goodwill, customer relationships, cable television franchise rights and spectrum licenses.

Goodwill represents the excess purchase price over the fair value of the identifiable net assets acquired in a business combination.

Customer relationships and cable television franchise rights are initially recorded at their fair values in connection with business combinations.

Customer relationships, cable television franchise rights and spectrum licenses that are acquired in connection with a business combination are initially recorded at their fair values.

Goodwill and other intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment at least annually.

Intangible assets with finite lives are amortized on a straight-line basis over their respective estimated useful lives to their estimated residual values, and reviewed for impairment.

We do not amortize our cable television franchise rights and certain other intangible assets as these assets have indefinite lives.

We do not amortize our cable television franchise rights or spectrum licenses as these assets have indefinite lives.

The spectrum licenses provide us with the exclusive right to utilize a certain radio frequency spectrum to provide wireless communications services.

While spectrum licenses are issued for only a fixed time (generally, ten years), renewals of spectrum licenses occur routinely and at nominal cost.

Moreover, we believe there are currently no significant legal, regulatory, contractual, competitive, economic or other factors limiting the useful lives of our spectrum licenses, and therefore we treat the spectrum licenses as indefinite-lived intangible assets.

We believe we will be able to meet all requirements necessary to secure renewal of our spectrum licenses.

For additional information regarding the useful lives of our intangible assets, see note 9.

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If the carrying amount of the asset or asset group is greater than the expected undiscounted cash flows to be generated by such asset or asset group, an impairment adjustment is recognized.

Such adjustment is measured by the amount that the carrying value of such asset or asset group exceeds its fair value.

Such adjustment is measured by the amount that the carrying value of such asset or asset

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

group exceeds its fair value.

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 evaluate goodwill and other indefinite-lived intangible assets (primarily cable television franchise rights) for impairment at least annually on October 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 cable television franchise rights and spectrum licenses) for impairment at least annually on October 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.

For impairment evaluations with respect to both 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.

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”).

A reporting unit is an operating segment or one level below an operating segment.

Goodwill impairment is recorded as the excess of a reporting unit’s carrying value over its fair value and is 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 charged to operations

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

as an impairment loss.

For additional information regarding the fair value measurements of our property and equipment and intangible assets, see note 6.

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Our contract assets were $ 82 million and $ 22 million as of December 31, 2020 and 2019, respectively.

The change in our contract assets during 2019 was not material.

The current and long-term portion of contract assets are included in other current assets and other assets, net, respectively, in our consolidated balance sheet.

The current and long-term portion of contract assets are included in other current assets, net and other assets, net, respectively, in our consolidated balance sheets.

Deferred Contract Costs

Incremental costs to obtain a contract with a customer, such as incremental sales commissions, are recognized as an asset and amortized to SG&A expenses over the applicable period benefited, which is the longer of the contract life or the economic life of the commission.

Incremental costs to obtain a contract with a customer, such as incremental sales commissions, are recognized as an asset and amortized to other operating costs and expenses over the applicable period benefited, which is the longer of the contract life or the economic life of the commission.

If, however, the amortization period is one year or less, we expense such costs in the period incurred.

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Our deferred contract costs were $ 15 million and $ 8 million as of December 31, 2020 and 2019, respectively.

The change in our deferred contract costs during 2019 was not material.

The current and long-term portion of deferred contract costs are included in other current assets and other assets, net, respectively, in our consolidated balance sheet.

The current and long-term portion of deferred contract costs are included in other current assets, net and other assets, net, respectively, in our consolidated balance sheets.

Deferred Revenue

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Long-term deferred revenue is included in other long-term liabilities in our consolidated balance sheets.

We recorded an aggregate of $ 19 million of current and long-term deferred revenue on January 1, 2018 upon the adoption of ASU 2014-09 .

The decrease in our current and long-term deferred revenue balances during 2019 primarily relates to amortization of long-term capacity contracts, partially offset by new contracts entered into during the year at Networks & LatAm .

Operating Leases

Our operating leases primarily consist of (i) property leases for mobile tower locations that generally have initial terms of five to ten years with one or more renewal options and (ii) lease commitments for (a) retail stores, offices and facilities, (b) other network assets and (c) other equipment.

It is expected that in the normal course of business, operating leases that expire generally will be renewed or replaced by similar leases.

For additional information regarding our leases, see note 11.

We classify leases with a term of greater than 12 months where substantially all risks and rewards incidental to ownership are retained by the third-party lessors as operating leases.

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Contingent rental payments are recognized to expense when incurred.

Our right-of-use assets are included in other assets, net, in our consolidated balance sheet.

Our current and non-current operating lease liabilities are included in other accrued and current liabilities and other long-term liabilities, respectively, in our consolidated balance sheet.

Our right-of-use assets are included in other assets, net, in our consolidated

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

balance sheets.

Our current and non-current operating lease liabilities are included in other accrued and current liabilities and other long-term liabilities , respectively, in our consolidated balance sheets.

We use a credit-adjusted discount rate to measure our operating lease liabilities.

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We determine the discount factor from this adjusted curve for each borrowing group.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

It is expected that in the normal course of business, operating leases that expire generally will be renewed or replaced by similar leases.

The income taxes of Liberty Latin America are presented on a standalone basis, and each tax paying entity or group within Liberty Latin America is presented on a separate return basis.

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Our net asset or liability in respect of defined benefit pension plans represents the fair value of the plan assets, less the present value of the defined benefit obligations.

The fair value of plan assets and the projected benefit obligation for each plan are calculated annually by independent qualified actuaries.

The fair value of plan assets and the projected benefit obligation for each plan is calculated annually by independent qualified actuaries.

Defined benefit assets are only recognized to the extent they are deemed recoverable.

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A defined contribution plan is a pension plan under which we have no further obligation once the fixed defined contribution has been paid to the third-party administrator of the plan.

Contributions under our defined contribution pension plan are recognized as incurred in SG&A expense in our consolidated statements of operations.

Contributions under our defined contribution pension plans are recognized as incurred in other operating costs and expenses in our consolidated statements of operations.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

Foreign Currency Translation and Transactions

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The effect of exchange rates on cash balances held in foreign currencies are separately reported in our consolidated statements of cash flows.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Transactions denominated in currencies other than our or our subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise.

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Arrangement consideration allocated to handsets is recognized as revenue when the goods have been transferred to the customer.

Mobile Revenue – Handset Insurance Revenue.

We recognize revenue associated with handset insurance on a straight-line basis over the coverage period.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

B2B Subsea Network Revenue – Long-term Capacity Contracts.

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The revenue associated with prepaid capacity contracts is deferred and generally recognized on a straight-line basis over the life of the contract.

As of December 31, 2019 , we have approximately $ 455 million of unfulfilled performance obligations relating to our long-term capacity contracts, primarily subsea contracts, that generally will be recognized as revenue over an average remaining life of seven years .

As of December 31, 2020, we have approximately $ 410 million of unfulfilled performance obligations relating to our long-term capacity contracts, primarily subsea contracts, that generally will be recognized as revenue over an average remaining life of six years .

Government Funding Revenue.

During 2018, we received funds from the U.S.

Federal Communications Commission (the FCC ), which were granted to help restore and improve coverage and service quality from damages caused by Hurricanes Irma and Maria (the 2017 Hurricanes ), across certain of our markets.

The FCC does not meet the definition of a “customer,” accordingly, we recognized the funds granted from the FCC as other revenue in the period in which we were entitled to receive the funds.

For additional information regarding funding received during the third quarter of 2018 , see note 19 .

From time to time, we received funds from the Federal Communications Commission ( FCC ), primarily in Puerto Rico, related to hurricane restoration efforts.

The FCC does not meet the definition of a “customer,” accordingly, we recognized the funds granted from the FCC as other revenue in the period in which we are entitled to receive the funds.

Sales, Use and Other Value-Added Taxes ( VAT ).

Revenue is recorded net of applicable sales, use and other value-added taxes.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Share-based Compensation

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The grant-date fair values for stock appreciation rights ( SARs ) are estimated using the Black-Scholes-Merton valuation model and the grant-date fair values for restricted stock units ( RSUs ) and performance-based restricted stock units ( PSUs ) are based upon the closing market price of our stock on the date of grant.

We may also settle annual bonus-related obligations in the form of equity.

We use the liability-based method of accounting in such situation, as the equity to be issued is variable.

We use the legal life of the award for the expected life of SARs granted to executives.

For SARs granted to non-executives, the expected life is calculated using the “simplified method.” We believe the simplified method is appropriate for these awards as we do not have historical exercise data for periods prior to the Split-Off .

The expected volatility of SARs is calculated utilizing a weighted average computation of data from a comparable group of peer companies, Liberty Latin America ’s share trading history, and the implied volatility from traded LILA and LILAK options.

The expected volatility of SARs is based on a weighted average calculation that may include (i) data from a comparable group of peer companies, (ii) Liberty Latin America’s share trading history and/or (iii) the implied volatility from traded LILA and LILAK options.

We recognize the grant-date fair value of outstanding awards as a charge to operations over the requisite service period, which is generally the vesting period, and account for forfeitures as they occur.

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Earnings (Loss) per Share

Basic earnings (loss) per share ( EPS ) is computed by dividing net earnings (loss) attributable to Liberty Latin America shareholders by the weighted average number of Liberty Latin America Shares and/or LiLAC Shares outstanding during the years presented, as further described below.

Basic earnings (loss) per share ( EPS ) is computed by dividing net earnings (loss) attributable to Liberty Latin America shareholders by the weighted average number of Liberty Latin America common shares ( Liberty Latin America Shares ) during the years presented, as further described below.

Diluted EPS presents the dilutive effect, if any, on a per share basis of potential shares as if they had been exercised, vested or converted at the beginning of the periods presented.

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Year ended December 31,

2020 2019 2018

Weighted average shares outstanding - basic and dilutive 195,535,301 184,369,078 176,001,049

Represent the weighted average number of Liberty Latin America Shares outstanding during the year.

Represents (i) the weighted average number of LiLAC Shares outstanding during the year prior to the Split-Off and (ii) the weighted average number of Liberty Latin America Shares outstanding during the year subsequent to the Split-Off .

The amount was used for both basic and dilutive EPS , as no Company equity awards were outstanding prior to the Split-Off .

We reported losses attributable to Liberty Latin America shareholders during 2020, 2019 and 2018.

As a result, the potentially dilutive effect at December 31, 2020, 2019 and 2018 of the following items was not included in the computation of diluted loss per share for such periods because their inclusion would have been anti-dilutive to the computation or, in the case of certain PSUs, because such awards had not yet met the applicable performance criteria:

(i) using the if-converted method, the aggregate number of shares potentially issuable under our Convertible Notes of approximately 18.1 million , nil and nil , respectively, (ii) the aggregate number of shares issuable pursuant to outstanding options, SARs and RSUs of approximately 15.2 million , 13.1 million and 8.9 million , respectively, and (iii) the aggregate number of shares issuable pursuant to outstanding PSUs of approximately 2.0 million , 2.1 million and 1.2 million , respectively.

(i) using the if-converted method, the aggregate number of shares potentially issuable under our Convertible Notes of approximately 19.5 million, 18.1 million and nil , respectively, (ii) the aggregate number of shares issuable pursuant to outstanding options, SARs and RSUs of

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

approximately 19.1 million, 15.2 million and 13.1 million, respectively, and (iii) the aggregate number of shares issuable pursuant to outstanding PSUs of approximately 1.1 million, 2.0 million and 2.1 million, respectively.

A portion of these amounts relate to Liberty Latin America Shares held by employees of Liberty Global.

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Pending Acquisition

On October 9, 2019, Leo Cable and Liberty Latin America entered into a stock purchase agreement with certain subsidiaries of AT&T Inc.

On July 30, 2020, we entered into a definitive agreement to acquire Telefónica S.A.’s wireless operations in Costa Rica in an all-cash transaction based upon an enterprise value of $ 500 million on a cash- and debt-free basis (the Telefónica-Costa Rica Acquisition ).

The transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2021.

2020 Acquisition

On October 9, 2019, Liberty Communications and Liberty Latin America entered into a stock purchase agreement (the Acquisition Agreement ) with certain subsidiaries of AT&T Inc.

( AT&T ) to acquire AT&T’s wireless and wireline operations in Puerto Rico and the U.S.

Virgin Islands (the AT&T

Virgin Islands (the AT&T Acquisition ) in an all-cash transaction.

Pursuant to the Acquisition Agreement, we agreed to acquire directly or indirectly, all of the outstanding shares of AT&T Mobility Puerto Rico Inc., AT&T Mobility Virgin Islands Inc.

and Beach Holding Corporation, collectively the " AT&T Acquired Entities ," which are also referred to as Liberty Mobile and its subsidiaries in note 1.

The AT&T Acquisition closed on October 31, 2020.

The operations acquired in the AT&T Acquisition provide consumer mobile and B2B services in Puerto Rico and the U.S.

Virgin Islands.

The AT&T Acquisition was valued at an enterprise value of $ 1,950 million on a cash- and debt-free basis, subject to certain adjustments.

We financed this acquisition, including related fees and expenses, through a combination of net proceeds from the 2027 LPR Senior Secured Notes, the 2027 LPR Senior Secured Notes Add-on, the 2026 SPV Credit Facility and available liquidity.

For further information about our debt and available liquidity, see note 10.

As a regulatory condition to close the AT&T Acquisition, we were required by the Department of Justice (the DOJ ) to divest certain B2B operations that are a part of our existing operations in Puerto Rico.

To meet the conditions of the DOJ, we entered into an agreement during the fourth quarter of 2020 to divest those B2B operations in Puerto Rico for a stated purchase price of $ 22 million.

The disposal of this B2B business closed in early January 2021.

AT&T will provide ongoing support to the AT&T Acquired Entities under a transition services agreement (the TSA ) for a period up to 36 months following the closing of the AT&T Acquisition.

Services under the TSA include, but are not limited to, (i) network operations, (ii) customer service, (iii) finance and accounting, (iv) information technology, (v) sales and marketing and (vi) content-related services.

We may terminate any services under the TSA upon sixty business days’ notice to AT&T in accordance with the terms and conditions of the TSA.

The following table sets forth a reconciliation of the stated purchase price included in the Acquisition Agreement to the “ Accounting Purchase Price ” (in millions):

Stated Acquisition Agreement purchase price

Purchase price allocated to purchase of prepaid roaming services (a) ( 73.3 )

Working capital and other purchase price adjustments:

Preliminary closing adjustments (b) ( 51.7 )

Additional working capital consideration (c) 61.0

Net cash paid for the AT&T Acquisition (d) 1,886.0

Contingent purchase price consideration (e) 44.8

Accounting Purchase Price $ 1,930.8

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

Acquisition ) in an all-cash transaction.

The AT&T Acquisition companies provide consumer mobile and B2B services in Puerto Rico and the U.S.

Virgin Islands, excluding DirecTV customers.

The AT&T Acquisition is valued at an enterprise value of $ 1,950 million on a cash- and debt-free basis, subject to certain adjustments.

We intend to finance this acquisition, including related fees and expenses, through a combination of net proceeds from the 2027 LPR Senior Secured Notes and the 2026 SPV Credit Facility , each as defined and further discussed in note 10 , and available liquidity.

The transaction is subject to customary closing conditions, including reviews by the United States FCC and the Department of Justice.

We currently expect the transaction to close in the second quarter of 2020.

AT&T will provide ongoing support to the AT&T Acquisition companies under a transition services agreement (the AT&T TSA ) for a period up to 36 months following the closing date of the acquisition.

Services under the AT&T TSA include, but are not limited to, (i) wireless core, (ii) technology development, (iii) global technology operations, (iv) wireless engineering, (v) network infrastructure, (vi) supply chain and (vii) finance and sales operations.

We may terminate any services under the AT&T TSA upon sixty business days’ notice to AT&T in accordance with the terms and conditions of the AT&T TSA .

(a) Represents the portion of the stated Acquisition Agreement purchase price that has been allocated to the purchase of prepaid roaming services.

In connection with the Acquisition Agreement, AT&T agreed to give us a $ 75 million credit against certain roaming services that AT&T provides to the AT&T Acquired Entities for a seven-year period following the closing of the AT&T Acquisition.

If the credits are not used for roaming services in that time period, any remaining credit may be used to acquire certain other services from AT&T thereafter.

For accounting purposes, we have bifurcated the discounted value of these services from the stated purchase consideration, of which $ 11 million and $ 62 million are included in prepaid expenses and other assets, net, respectively, in our December 31, 2020 consolidated balance sheet.

The total amount allocated to the purchase of prepaid roaming, $ 73 million, has been included in net cash provided by operating activities in our consolidated statement of cash flows.

(b) Represents preliminary closing adjustments to the purchase price pursuant to the terms of the Acquisition Agreement for (i) closing working capital balances, (ii) outstanding indebtedness and (iii) shortfalls in equipment subsidies made by AT&T prior to the closing of the AT&T Acquisition.

(c) Represents cash paid subsequent to the closing of the AT&T Acquisition related to certain liabilities of the AT&T Acquired Entities that were not assumed by us under the terms of the Acquisition Agreement.

(d) The net cash paid for the AT&T Acquisition is comprised of (i) the AT&T Acquisition Restricted Cash, as defined and described in note 10, which comprised $ 1,353 million and was released upon consummation of the AT&T Acquisition, and (ii) $ 533 million of cash and cash equivalents from available liquidity.

(e) Prior to the closing of the AT&T Acquisition, AT&T made prepayments to the tax authorities of Puerto Rico and the U.S.

Virgin Islands.

We expect that we will utilize these prepayments, which are reflected in income tax receivable on the consolidated balance sheet, against our future income tax liabilities.

Pursuant to the Acquisition Agreement, if we utilize such prepayments to reduce our future income tax liabilities, we are required to pay AT&T additional purchase consideration.

The fair value of this contingent purchase consideration has been included in other accrued and current liabilities in our consolidated balance sheet.

We have accounted for the AT&T Acquisition as a business combination using the acquisition method of accounting, whereby the Accounting Purchase Price was allocated to the acquired identifiable net assets of the AT&T Acquired Entities based on assessments of their respective fair values, and the excess of the Accounting Purchase Price over the fair values of these identifiable net assets was allocated to goodwill.

The purchase price allocation to the assets acquired and liabilities assumed, including the residual amount allocated to goodwill, is based on preliminary information.

This preliminary information is subject to change as we obtain additional facts, primarily related to the acquired property and equipment, intangible assets, leases and income taxes.

The information available to us to allocate consideration to acquired property and equipment and intangible assets is impacted as follows:

• Property and equipment:

the proximity of the acquisition date to our fiscal year-end date of December 31, 2020 and contractual restrictions set forth in the terms of the Acquisition Agreement that limit our ability to access certain historical cost information.

• Spectrum intangible assets:

the proximity of the acquisition date to our fiscal year-end date of December 31, 2020, which has limited our ability to obtain all necessary information regarding the assets acquired, resulting in the on-going analysis of market data to establish an estimate.

As a result of these factors, we expect the valuation of property and equipment and the spectrum intangible assets, which are each currently based upon the historical values of the AT&T Acquired Entities, will require the following:

• Property and equipment:

the use of an indirect cost approach, which utilizes trends based on historical cost information, supplemented with a market and direct replacement cost method for certain assets.

• Spectrum intangible assets:

the anticipated use of either an adjusted “market” approach, which requires the calibration of observable market inputs to reflect the fair value of the assets acquired, or a combination of an adjusted market-based approach with an income-based approach, which requires a wide range of assumptions and inputs, including forecasting costs associated with building a complementary asset base.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

Additionally, the valuation of the customer relationship intangible assets, which is currently based upon a preliminary multi-period excess earnings valuation method, will require updates to assumptions and inputs used, including the determination of contributory asset charges dependent on the valuation of the property and equipment and spectrum intangible assets.

For additional information regarding fair value methods used in acquisition accounting, see note 6.

During the measurement period, we will adjust the values attributed to our preliminary opening balance sheet, most notably acquired property and equipment, intangible assets, leases and income taxes, as additional information is obtained about facts and circumstances that existed as of the closing date of the AT&T Acquisition.

A summary of the preliminary opening balance sheet of the AT&T Acquired Entities at the October 31, 2020 acquisition date is presented in the following table (in millions):

Trade receivables $ 51.0

Prepaid expenses 0.1

Other current assets (a) 102.7

Goodwill (b) 352.2

Property and equipment 711.4

Intangible assets subject to amortization, net (c) 82.7

Intangible assets not subject to amortization (d) 894.4

Other assets (a) (e) 286.6

Accounts payable ( 3.0 )

Current portion of debt and finance lease obligations ( 0.2 )

Other accrued and current liabilities (e) ( 64.3 )

Long-term debt and finance lease obligations ( 10.6 )

Non-current deferred tax liabilities ( 304.9 )

Other long-term liabilities (e) ( 167.3 )

Total purchase price (f) $ 1,930.8

(a) Other current assets and other assets include $ 67 million and $ 39 million, respectively, in EIP receivables, as further described in note 3.

(b) The goodwill recognized in connection with the AT&T Acquisition is primarily attributable to (i) the ability to take advantage of the AT&T Acquired Entities’ existing mobile network to gain immediate access to potential customers and (ii) synergies that are expected to be achieved through the integration of the AT&T Acquired Entities with Liberty Latin America.

Due to the nature of the AT&T Acquisition, no tax deductions related to goodwill are expected.

At October 31, 2020 the weighted average useful life of the acquired customer relationship intangible assets was approximately 10 years.

(d) Amount represents spectrum licenses.

(e) Other assets, other accrued and current liabilities and other long-term liabilities include $ 196 million, $ 33 million and $ 163 million related to operating lease right-of-use assets, current operating lease obligations and non-current operating lease obligations, respectively.

(f) Amount excludes $ 56 million of direct acquisition costs, including $ 5 million incurred during 2019.

Direct acquisition costs are included in impairment, restructuring and other operating items, net, in our consolidated statements of operations.

Our consolidated statement of operations for the year ended December 31, 2020 includes revenue of $ 174 million and net loss of $ 83 million attributable to the AT&T Acquired Entities.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

Supplemental Pro Forma Information

The following unaudited pro forma financial information is based on the historical carve-out financial statements of the AT&T Acquired Entities and is intended to provide information about how the AT&T Acquisition may have affected Liberty Latin America’s historical consolidated financial statements if it had closed as of January 1, 2019.

The pro forma financial information below is based on available information and assumptions that we believe are reasonable.

The pro forma financial information is for illustrative and informational purposes only and is not intended to represent or be indicative of what our results of operations would have been had the AT&T Acquisition occurred on the date indicated nor should it be considered representative of our future financial condition or results of operations.

Year ended December 31,

Revenue $ 4,501.8 $ 4,753.5

Net loss attributable to Liberty Latin America shareholders $ ( 554.8 ) $ ( 8.1 )

The pro forma information set forth in the table above includes tax-effected pro forma adjustments primarily related to:

the impact of estimated costs associated with the TSA that replaced parent-company allocations included in the historical financial statements of the AT&T Acquired Entities;

the impact of new rate agreements associated with roaming, subsea and ethernet services;

the alignment of accounting policies;

interest expense related to additional borrowings in conjunction with the AT&T Acquisition;

the elimination of direct acquisition costs.

2019 Acquisition

Effective March 31, 2019, we completed the acquisition of an 87.5 % interest in United Telecommunication Services N.V.

( UTS ) for a cash purchase price of $ 162 million , subject to certain potential post-closing adjustments, based on an enterprise value of $ 189 million (the UTS Acquisition ).

During the third quarter of 2019, we increased our ownership interest in UTS from 87.5 % to 100 % , as further described in note 13 .

( UTS ) for an initial cash purchase price of $ 162 million, which was subject to certain potential post-closing adjustments, based on an enterprise value of $ 189 million (the UTS Acquisition ).

As noted below, during the first quarter of 2020, the purchase price was reduced by $ 6 million due to certain post-closing working capital adjustments.

During the third quarter of 2019, we increased our ownership interest in UTS from 87.5 % to 100 %.

UTS provides fixed and mobile services to the island nations of Curaçao, St.

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Eustatius and Saba.

The UTS Acquisition was funded through a $ 170 million draw on the C&W Revolving Credit Facility .

For further information on the draw of the C&W Revolving Credit Facility , see note 10 .

The UTS Acquisition was funded through a $ 170 million draw on the C&W Revolving Credit Facility, as defined in note 10.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

We have accounted for the UTS Acquisition as a business combination using the acquisition method of accounting, whereby the total purchase price was allocated to the acquired identifiable net assets of UTS based on assessments of their respective fair values, and the excess of the purchase price over the fair values of these identifiable net assets was allocated to goodwill.

The preliminary opening balance sheet is subject to adjustment based on our final assessment of the fair values of the acquired identifiable assets and liabilities.

The valuation process remains open and our opening balance sheet will change as we finalize our valuation.

The items with the highest likelihood to change upon finalization of the valuation process include property and equipment, goodwill, intangible assets and deferred taxes.

A summary of the purchase price and preliminary opening balance sheet of UTS at the effective March 31, 2019 acquisition date is presented in the following table (in millions):

A summary of the purchase price and opening balance sheet of UTS at the effective March 31, 2019 acquisition date is presented in the following table.

The opening balance sheet presented below reflects our final purchase price allocation (in millions):

Trade receivables 19.0

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Property and equipment 158.4

Goodwill (a) 17.1

Intangible assets subject to amortization 24.0

Long-term deferred tax assets

Other assets 18.2

Accounts payable ( 27.9 )

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Total purchase price (c)

The goodwill recognized in connection with the UTS Acquisition is primarily attributable to (i) the ability to take advantage of UTS’s existing broadband communications and mobile networks to gain immediate access to potential customers, and (ii) synergies that are expected to be achieved through the integration of UTS with C&W’s existing business in Curacao.

Amount represents the estimated aggregate fair value of the noncontrolling interest in UTS as of March 31, 2019 .

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Excludes $ 3 million of direct acquisition costs, including $ 1 million incurred during 2018.

(a) The goodwill recognized in connection with the UTS Acquisition is primarily attributable to (i) the ability to take advantage of UTS’s existing broadband communications and mobile networks to gain immediate access to potential customers, and (ii) synergies that are expected to be achieved through the integration of UTS with C&W’s existing business in Curacao.

(b) Amount represents the estimated aggregate fair value of the noncontrolling interest in UTS as of March 31, 2019.

Direct acquisition costs are included in impairment, restructuring and other operating items, net, in our consolidated statements of operations.

Our consolidated statement of operations for the year ended December 31, 2019 includes revenue of $ 96 million and net earnings of $ 4 million attributable to UTS.

Supplemental pro forma information related to the UTS Acquisition has not been included as it would not have had a significant impact on our results of operations during 2019.

2019 Disposition

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2018 Acquisition

On February 12, 2018, we entered into a definitive agreement to acquire certain assets and liabilities related to Televisora de Costa Rica S.A.’s ( Televisora ) cable operations in Costa Rica ( Cabletica ) based on an enterprise value of $ 252 million , subject to certain customary adjustments.

On February 12, 2018, we entered into a definitive agreement to acquire certain assets and liabilities related to Televisora de Costa Rica S.A.’s ( Televisora ) cable operations in Costa Rica based on an enterprise value of $ 252 million, subject to certain customary adjustments.

As part of the agreement, the owners of Televisora retained a 20 % ownership interest in Cabletica.

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The Cabletica Acquisition was financed through a combination of debt and existing cash.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

We have accounted for the Cabletica Acquisition as a business combination using the acquisition method of accounting, whereby the total purchase price was allocated to the acquired identifiable net assets of Cabletica based on assessments of their respective fair values, and the excess of the purchase price over the fair values of these identifiable net assets was allocated to goodwill.

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Property and equipment 65.8

Goodwill (a) 159.6

Intangible assets subject to amortization (b) 52.7

Other assets 0.1

Other accrued and current liabilities ( 17.7 )

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Total purchase price (d)

The goodwill recognized in connection with the Cabletica Acquisition is primarily attributable to the ability to take advantage of Cabletica ’s existing advanced broadband communications network as a base on which to expand our footprint in the region, and to gain immediate access to potential customers.

Amount primarily includes intangible assets related to customer relationships.

(a) The goodwill recognized in connection with the Cabletica Acquisition is primarily attributable to the ability to take advantage of Cabletica’s existing advanced broadband communications network as a base on which to expand our footprint in the region, and to gain immediate access to potential customers.

(b) Amount primarily includes intangible assets related to customer relationships.

As of October 1, 2018, the weighted average useful life of Cabletica’s intangible assets was approximately eleven years .

Amount represents the fair value of Televisora ’s interest in Cabletica as of the October 1, 2018 acquisition date.

Excludes $ 5 million of direct acquisition costs, including $ 3 million incurred during 2018 .

2017 Acquisition

Carve-out Entities.

In connection with the acquisition of C&W during 2016 (the C&W Acquisition ), and C&W ’s acquisition of Columbus International Inc.

and its subsidiaries (collectively, Columbus ) in 2015 (the Columbus Acquisition ), certain entities (the Carve-out Entities ) that hold licenses granted by the FCC were transferred to entities not controlled by C&W (collectively, New Cayman ).The arrangements with respect to the Carve-out Entities , which were executed in connection with the Columbus

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Acquisition and the C&W Acquisition , contemplated that upon receipt of regulatory approval, we would acquire the Carve-out Entities .

On March 8, 2017, the FCC granted its approval for our acquisition of the Carve-out Entities .

Accordingly, on April 1, 2017 , subsidiaries of C&W acquired the Carve-out Entities (the C&W Carve-out Acquisition ) for an aggregate purchase price of $ 86 million , which represents the amount due under notes receivable that were exchanged for the equity of the Carve-out Entities .

(d) Excludes $ 5 million of direct acquisition costs, including $ 3 million incurred during 2018 .

(5) Derivative Instruments

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Accordingly, changes in the fair values of most of our derivative instruments are recorded in realized and unrealized gains or losses on derivative instruments in our consolidated statements of operations.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

The following table provides details of the fair values of our derivative instrument assets and liabilities:

December 31, 2019

December 31, 2018

Long-term (a)

December 31, 2020 December 31, 2019

Current (a) Long-term (a) Total Current (a) Long-term (a) Total

Cross-currency and interest rate derivative contracts (b)

$ 0.7 $ 4.4 $ 5.1 $ 23.4 $ 126.9 $ 150.3

Foreign currency forward contracts

— — — 9.8 — 9.8

Total $ 0.7 $ 4.4 $ 5.1 $ 33.2 $ 126.9 $ 160.1

Cross-currency and interest rate derivative contracts (b)

$ 71.4 $ 403.0 $ 474.4 $ 34.9 $ 99.6 $ 134.5

Foreign currency forward contracts

Our current derivative assets, current derivative liabilities, long-term derivative assets and long-term derivative liabilities are included in other current assets, net, other accrued and current liabilities, other assets, net, and other long-term liabilities, respectively, in our consolidated balance sheets.

We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments.

18.8 — 18.8 0.5 — 0.5

Total $ 90.2 $ 403.0 $ 493.2 $ 35.4 $ 99.6 $ 135.0

(a) Our current derivative assets, long-term derivative assets and long-term derivative liabilities are included in other current assets, net, other assets, net, and other long-term liabilities, respectively, in our consolidated balance sheets.

(b) We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments.

In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 10).

The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in net gains (losses) of $ 47 million, $ 4 million and ($ 23 million) during 2020, 2019 and 2018, respectively.

The gain during the 2020 period is primarily due to increased credit risk stemming from market reaction to the COVID-19 outbreak, as further described and defined in note 9.

These amounts are included in realized and unrealized gains (losses) on derivative instruments, net, in our consolidated statements of operations.

For further information regarding our fair value measurements, see note 6.

The derivative assets set forth in the table above exclude our Weather Derivatives , as defined and described in note 3 , as they are not accounted for at fair value.

The Weather Derivatives are included in other current assets, net, in our consolidated balance sheet.

The derivative assets set forth in the table above exclude our Weather Derivatives, as they are not accounted for at fair value.

The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows:

Year ended December 31,

2020 2019 2018

Cross-currency and interest rate derivative contracts (a) $ ( 328.6 ) $ ( 21.0 ) $ 69.6

Foreign currency forward contracts ( 7.8 ) 9.4 25.2

Weather Derivatives ( 16.3 ) ( 5.6 ) —

Total $ ( 352.7 ) $ ( 17.2 ) $ 94.8

(a) The losses for 2020 include a realized gain of $ 71 million associated with the settlement of certain cross-currency interest rate swaps at VTR in June 2020 that were unwound in connection with the July 2020 refinancing of certain VTR debt.

For additional information regarding the refinancing, see note 10.

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows:

Year ended December 31,

Cross-currency and interest rate derivative contracts

Foreign currency forward contracts and other (a)

The amount for 2019 includes $ 6 million of amortization of the premiums associated with our Weather Derivatives , which we entered into during the second quarter of 2019.

The following table sets forth the classification of the net cash inflows (outflows) of our derivative instruments:

Year ended December 31,

2020 2019 2018

Operating activities $ ( 50.1 ) $ 11.2 $ ( 15.9 )

Investing activities 7.4 6.5 ( 2.3 )

Financing activities

Financing activities (a) 182.5 ( 0.3 ) 10.0

Total $ 139.8 $ 17.4 $ ( 8.2 )

(a) The 2020 amount is primarily related to the settlement of certain cross-currency interest rate swaps at VTR.

The settlement proceeds were used in part to redeem certain VTR debt in July 2020, as further described in note 10.

Counterparty Credit Risk

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Collateral has not been posted by either party under the derivative instruments of our borrowing groups.

At December 31, 2019 , our exposure to counterparty credit risk included derivative assets with an aggregate fair value of $ 145 million .

At December 31, 2020, our exposure to counterparty credit risk resulting from our net derivative position was not material.

Each of our borrowing groups has entered into derivative instruments under agreements with each counterparty that contain master netting arrangements that are applicable in the event of early termination by either party to such derivative instrument.

The master netting arrangements under each of these master agreements are limited to the derivative instruments governed by the relevant master agreement within each individual borrowing group and are independent of similar arrangements of our other subsidiary borrowing groups.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Details of our Derivative Instruments

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The following table sets forth the total notional amounts and the related weighted average remaining contractual lives of our cross-currency swap contracts at December 31, 2020:

Borrowing group

Notional amount

Weighted average remaining life

Borrowing group Notional amount

counterparty Notional amount

counterparty Weighted average remaining life

in millions in years

C&W $ 14.3 JMD 1,817.5 2.0

$ 56.3 COP 197,014.1 5.6

VTR $ 1,150.0 CLP 933,800.0 5.5

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

Interest Rate Derivative Contracts

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dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our interest rate swap contracts at December 31, 2020:

Borrowing group

Notional amount due from counterparty

Weighted average remaining life

Borrowing group Notional amount due from counterparty Weighted average remaining life

in millions in years

$ 2,250.0 6.7

VTR $ 198.0 2.1

Liberty Puerto Rico $ 1,000.0 5.6

Includes forward-starting derivative instruments.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Cabletica $ 53.5 2.5

(a) Includes forward-starting derivative instruments.

Basis swaps involve the exchange of attributes used to calculate our floating interest rates, including (i) the benchmark rate, (ii) the underlying currency and/or (iii) the borrowing period.

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dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our basis swap contracts at December 31, 2020:

Borrowing group

Notional amount due from counterparty

Weighted average remaining life

Liberty Puerto Rico (a)

Includes forward-starting derivative instruments.

Borrowing group Notional amount due from counterparty Weighted average remaining life

in millions in years

C&W $ 1,510.0 0.7

Liberty Puerto Rico $ 1,000.0 0.1

Foreign Currency Forwards Contracts

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At December 31, 2020, our foreign currency forward contracts had total notional amounts due from and to counterparties of $ 205 million and CLP 159 billion, respectively, with a weighted average remaining contractual life of 0.5 years.

All of our foreign currency forward contracts are held by our VTR Finance borrowing group.

All of our foreign currency forward contracts are held by our VTR borrowing group.

(6) Fair Value Measurements

We use the fair value method to account for most of our derivative instruments and the available-for-sale method to account for our investment in the U.K.

We use the fair value method to account for most of our derivative instruments and the available-for-sale method to account for our investment in U.K.

Government Gilts.

The reported fair values of our derivative instruments as of December 31, 2019 likely will not represent the value that will be paid or received upon the ultimate settlement or disposition of these assets and liabilities, as we expect that the values realized generally will be based on market conditions at the time of settlement, which may occur at the maturity of the derivative instrument or at the time of the repayment or refinancing of the underlying debt instrument.

The reported fair values of our derivative instruments as of December 31, 2020 likely will not represent the value that will be paid or received upon the ultimate settlement or disposition of these assets and liabilities, as we expect that the values realized generally will be based on market conditions at the time of

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

settlement, which may occur at the maturity of the derivative instrument or at the time of the repayment or refinancing of the underlying debt instrument.

GAAP provides for a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

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The recurring fair value measurements of these derivative instruments are determined using discounted cash flow models.

Most of the inputs to these discounted cash flow models consist of, or are derived from, observable Level 2

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

data for substantially the full term of these derivative instruments.

Most of the inputs to these discounted cash flow models consist of, or are derived from, observable Level 2 data for substantially the full term of these derivative instruments.

This observable data mostly includes interest rate futures and swap rates, which are retrieved or derived from available market data.

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Our and our counterparties’ credit spreads represent our most significant Level 3 inputs, and these inputs are used to derive the credit risk valuation adjustments with respect to these instruments.

As we would not expect changes in our or our counterparties’ credit spreads to have a significant impact on the valuations of these instruments, we have determined that these valuations fall under Level 2 of the fair value hierarchy.

Our credit risk valuation adjustments with respect to our cross-currency and interest rate derivative contracts are quantified and further explained in note 5 .

Notwithstanding the impact of COVID-19 on our credit risk, we generally would not expect changes in our or our counterparties’ credit spreads to have a significant impact on the valuations of these instruments.

As a result, we have determined that these valuations continue to fall under Level 2 of the fair value hierarchy.

Our credit risk valuation adjustments with respect to our interest rate and cross-currency derivative contracts are quantified and further explained in note 5.

Due to the lack of Level 2 inputs for the valuation of the U.S.

dollar to the Jamaican dollar cross-currency swaps (the Sable Currency Swaps ) held by Sable International Finance Limited ( Sable ), a wholly-owned subsidiary of C&W , we believe this valuation falls under Level 3 of the fair value hierarchy.

dollar to the Jamaican dollar cross-currency swaps (the Sable Currency Swaps ) held periodically by Sable International Finance Limited ( Sable ), a wholly-owned subsidiary of C&W, we believe this valuation falls under Level 3 of the fair value hierarchy.

The Sable Currency Swaps are our only Level 3 financial instruments.

The fair values of the Sable Currency Swaps at December 31, 2019 and 2018 were $ 30 million and $ 36 million , respectively, which are included in other long-term liabilities in our consolidated balance sheets.

The fair values of the Sable Currency Swaps at December 31, 2020 and 2019 were $ 1 million and ($ 30 million), respectively, which are included in other assets, net, and long-term liabilities, respectively, in our consolidated balance sheets.

The change in the fair values of the Sable Currency Swaps resulted in net gains (losses) of $ 31 million, $ 6 million and ($ 14 million) during 2020, 2019 and 2018, respectively, which are reflected in realized and unrealized gains (losses) on derivative instruments, net, in our consolidated statements of operations.

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Fair value measurements are also used for purposes of nonrecurring valuations performed in connection with our Convertible Notes, acquisition accounting and impairment assessments.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

Conversion Option – Convertible Notes

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Acquisition Accounting

The nonrecurring valuations associated with acquisition accounting, which use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy, primarily include the valuation of customer relationships and property and equipment, as further described below:

The nonrecurring valuations associated with acquisition accounting, which use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy, primarily include the valuation of property and equipment, customer relationships and spectrum licenses, as further described below:

• Property and equipment .

The valuation of property and equipment may use an indirect cost approach, which utilizes trends based on historical cost information, or a combination of indirect cost approach, market approach and direct replacement cost method, which considers factors such as current prices of the same or similar equipment, the age of the equipment and economic obsolescence.

• Customer relationships.

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The excess earnings methodology for customer relationship intangible assets requires us to estimate the specific cash flows expected from the acquired customer relationships, considering such factors as estimated customer life, the revenue expected to be generated over the life of the customer relationships, contributory asset charges and other factors.

Property and equipment .

Property and equipment is typically valued using a replacement or reproduction cost approach, considering factors such as current prices of the same or similar equipment, the age of the equipment and economic obsolescence.

During 2019, we performed nonrecurring valuations related to the acquisition accounting for the UTS Acquisition and the Cabletica Acquisition .

The weighted average discount rate used in the preliminary valuation of the customer relationships acquired as a result of the UTS Acquisition was approximately 14 % .

The weighted average discount rate used in the final valuation of the customer relationships acquired as a result of the Cabletica Acquisition was approximately 14 % .

• Spectrum intangible assets.

The valuation of spectrum intangible assets may use either an adjusted market-based approach, which requires the calibration of observable market inputs to reflect the fair value of the assets acquired, or a combination of an adjusted market-based approach with other methods, such as an income-based approach (e.g.

the “greenfield” valuation method), which requires a wide range of assumptions and inputs, including forecasting costs associated with building a complementary asset base.

During the fourth quarter of 2020, we performed a nonrecurring valuation related to the preliminary acquisition accounting for the AT&T Acquisition.

For additional information related to the status of valuation work associated with property and equipment and intangible assets acquired in connection with the AT&T Acquisition, see note 4.

In connection with the AT&T Acquisition, we performed a nonrecurring valuation related to the preliminary acquisition accounting for the assets and liabilities acquired.

The weighted average discount rate used in the valuation of the customer relationships acquired was approximately 10.5 %.

In March 2020, we performed a nonrecurring valuation related to the final acquisition accounting for the UTS Acquisition.

The weighted average discount rate used in the valuation of the customer relationships acquired was approximately 13.5 %.

During September 2019, we performed a nonrecurring valuation related to the final acquisition accounting for the Cabletica Acquisition.

The weighted average discount rate used in the valuation of the customer relationships acquired was approximately 14 %.

Impairment Assessments

The nonrecurring valuations associated with impairment assessments, which use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy, primarily include the valuation of reporting units for the purpose of testing for goodwill impairment.

Unless a reporting unit has a readily determinable fair value, we estimate the fair value of the reporting unit using either a market-based or income-based approach.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

During 2017, we completed final nonrecurring valuations related to the acquisition accounting for the C&W Acquisition and C&W Carve-out Acquisition .

The weighted average discount rates used in the final valuation of the customer relationships acquired as a result of the C&W Acquisition ranged from 9 % to 12 % .

Impairment Assessments

Unless a reporting unit has a readily determinable fair value, we estimate the fair value of the reporting unit using either a market-based approach or discounted cash flow analysis.

With the exception of certain inputs for our weighted average cost of capital and discount rate calculations that are derived from pricing services, the inputs used in our discounted cash flow analysis, such as forecasts of future cash flows, are based on our assumptions.

During the third quarter of 2019, based on further declines in the operating results of our Panamanian reporting unit of our C&W segment, we conducted a goodwill impairment assessment of that reporting unit.

We used a market-based valuation approach to determine the fair value of this reporting unit, as further discussed below.

For additional information regarding impairment charges resulting from this impairment analysis, see note 9 .

As part of our annual goodwill impairment assessment in the fourth quarter of 2019 , we first made a qualitative assessment to determine potential impairment and concluded that no events or circumstances indicated that the fair value of any our reporting units is less than its carrying amount.

As part of our annual goodwill impairment assessment in the fourth quarter of 2018 , we used a market-based valuation approach to determine the fair value of certain reporting units within C&W .

As part of our annual goodwill impairment assessment in the fourth quarter of 2020, we first made a qualitative assessment to determine potential impairment and concluded that no events or circumstances indicated that the fair value of any of our reporting units is less than its carrying amount.

During the second quarter of 2020, primarily due to the ongoing economic impacts associated with COVID-19 and organizational restructuring of certain markets within our C&W Caribbean and Networks segment, we performed goodwill impairment analyses of several reporting units within the C&W Caribbean and Networks segment and the C&W Panama segment.

We used an income approach to determine the estimated fair values of these reporting units.

Under this approach, we utilized a discounted cash flow model as the valuation technique to estimate the fair values of the reporting units from a market participant’s perspective.

This approach uses certain inputs and assumptions that require estimates and judgments, including forecasted cash flows and appropriate discount rates.

Forecasts of future cash flows are largely based on our assumptions using Level 3 inputs, which we consider to be consistent with a market participant’s approach.

We used the weighted-average cost of capital for each reporting unit as the basis for the discount rate to establish the present value of the expected cash flows for the respective reporting unit.

The inputs for our weighted average cost of capital calculations include Level 2 and Level 3 inputs, generally derived from third-party pricing services.

We used discount rates ranging from 8.9 % to 10.3 % in the valuation of the various reporting units within our C&W Caribbean and Networks segment and 9.8 % in the valuation of our C&W Panama segment.

During the third quarter of 2019, based on declines in the operating results of our C&W Panama segment, we conducted a goodwill impairment assessment of that reporting unit.

We used a market-based valuation approach to determine the fair value of this reporting unit.

The fair value of a reporting unit using a market-based approach is estimated based upon a market multiple typically applied to the reporting unit’s Adjusted OIBDA, as defined in note 21.

We determine the market multiple for each reporting unit taking the following into consideration:

(i) public company trading multiples for entities with similar business characteristics as the respective reporting unit, adjusted to reflect an appropriate control premium or discount, a “trading multiple,” and (ii) multiples derived from the value of recent transactions for businesses with similar operations and in geographically similar locations, a “transaction multiple.” For additional information regarding impairment charges resulting from these impairment analyses, see note 9 .

In September 2017, the 2017 Hurricanes impacted a number of our markets in the Caribbean, resulting in varying degrees of damage to homes, businesses and infrastructure in these markets.

The most extensive damage occurred in Puerto Rico and certain markets within our C&W segment, most notably British Virgin Islands and Dominica (collectively, the Impacted Markets ) .

The effects of the hurricanes were deemed to constitute triggering events with respect to the need to assess certain assets for impairment.

Nonrecurring valuations were performed in connection with these impairment assessments, most notably to measure the fair value of Liberty Puerto Rico and certain reporting units within C&W for purposes of assessing goodwill impairments, and to measure the fair value of Liberty Puerto Rico ’s cable television franchise rights.

We used discount rates of 8 % and 10 % in the valuation of Liberty Puerto Rico and certain reporting units within C&W , respectively, while a discount rate of 9 % was used in the valuation of Liberty Puerto Rico ’s cable television franchise rights.

These valuations used projected cash flows that reflected the significant risks and uncertainties associated with our recovery from the 2017 Hurricanes , including variables such as (i) the length of time estimated to restore the power and transmission systems, particularly in Puerto Rico, (ii) the number of people estimated to leave these islands for an extended period or permanently and the associated impact on customer churn, (iii) the amount of potential insurance recoveries and (iv) the estimated capital expenditures required to restore the damaged networks in the Impacted Markets .

For additional information regarding the impairment charges related to the hurricanes, see note 9 .

A subsidiary of C&W holds a 49 % interest in TSTT .

We determined the market multiple for each reporting unit taking the following into consideration:

As part of our annual goodwill impairment assessment in the fourth quarter of 2018, we used a market-based valuation approach, as described above, to determine the fair value of certain reporting units within C&W Caribbean and Networks and our C&W Panama segment.

For additional information regarding goodwill impairment charges resulting from these impairment analyses, see note 9.

(7) Investments

We hold a 49 % interest in TSTT.

Our investment in TSTT is included in other assets, net, in our consolidated balance sheets.

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As such, no assurance can be given that we will be able to recover the carrying value of our investment in TSTT.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

(8) Insurance Recoveries

The 2017 Hurricanes impacted a number of our markets in the Caribbean, resulting in varying degrees of damage to homes, businesses and infrastructure in these markets.

In October 2016, our operations in the Bahamas, which is part of our C&W segment, were significantly impacted by Hurricane Matthew .

In October 2016, our operations in the Bahamas, which is part of our C&W Caribbean and Networks segment, were significantly impacted by Hurricane Matthew.

In December 2018, we settled our insurance claims for the 2017 Hurricanes and Hurricane Matthew as follows:

(i) $ 109 million for the 2017 Hurricanes, after deducting $ 30 million of self-insurance, and (ii) $ 12 million for Hurricane Matthew, after deducting $ 15 million of self-insurance.

The following table summarizes the impact of the insurance settlements to our consolidated statements of operations:

Year ended December 31,

Other operating (a)

Business interruption (b)

Impairment, restructuring and other operating items, net (c)

The 2017 amount represents recoveries related to Hurricane Matthew .

The 2018 amount includes $ 3 million attributable to Hurricane Matthew .

Amounts for each year include $ 3 million attributable to Hurricane Matthew .

During 2018 and 2017, we received net advance payments related to the 2017 Hurricanes and Hurricane Matthew from our third-party insurance provider totaling $ 51 million and $ 3 million , respectively.

Of the amount received during 2018, $ 21 million is presented as a cash inflow from investing activities on our consolidated statement of cash flows.

With respect to the advances received during 2018, $ 45 million was provided to Liberty Puerto Rico and $ 6 million was provided to C&W .

The advance received during 2017 related to Hurricane Matthew and was provided to C&W .

During the first quarter of 2019, we received the remaining outstanding insurance settlement amount of $ 67 million , of which $ 33 million and $ 34 million have been presented as operating and investing activities, respectively, in our consolidated statement of cash flows.

With respect to the cash received, $ 37 million , $ 27 million and $ 3 million was provided to C&W , Liberty Puerto Rico and our Corporate operations, respectively.

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

The following table summarizes the impact of the insurance settlements to our consolidated statement of operations for the year ended December 31, 2018 (in millions):

Other operating costs and expenses $ 4.6

Business interruption loss recovery (a) 59.5

Impairment, restructuring and other operating items, net (a) 35.7

(a) Each amount includes $ 3 million attributable to Hurricane Matthew.

During 2018, we received net advance payments related to the 2017 Hurricanes and Hurricane Matthew from our third-party insurance provider totaling $ 51 million, of which $ 21 million is presented as a cash inflow from investing activities on our consolidated statement of cash flows.

With respect to the net advance payments, $ 45 million was provided to Liberty Puerto Rico and $ 6 million was provided to C&W Caribbean and Networks.

During the first quarter of 2019, we received the then outstanding insurance settlement amount of $ 67 million, of which $ 33 million and $ 34 million have been presented as operating and investing activities, respectively, in our consolidated statement of cash flows.

With respect to the cash received, $ 37 million, $ 27 million and $ 3 million was provided to C&W Caribbean and Networks, Liberty Puerto Rico and our Corporate operations, respectively.

(9) Long-lived Assets

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The following table sets forth the details of our impairment charges:

VTR/Cabletica

Liberty Puerto Rico

C&W Caribbean and Networks C&W Panama VTR/Cabletica Liberty Puerto Rico Total

Year ended December 31, 2020:

Goodwill $ 99.0 $ 177.0 $ — $ — $ 276.0

Property and equipment and other 3.9 — 1.7 1.5 7.1

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Year ended December 31, 2019:

Goodwill $ — $ 181.9 $ — $ — $ 181.9

Property and equipment and other 17.2 — 0.3 — 17.5

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Year ended December 31, 2018:

Annual impairment analysis – goodwill

Hurricane-related:

Property and equipment

Other indefinite-lived intangible assets

Total hurricane-related

Goodwill $ 2.5 $ 607.5 $ — $ — $ 610.0

Property and equipment and other 5.0 — 0.3 0.4 5.7

Total impairment charges $ 7.5 $ 607.5 $ 0.3 $ 0.4 $ 615.7

During our 2018 annual goodwill impairment test, we concluded a $ 608 million impairment was necessary at the Panamanian reporting unit of our C&W segment and during the third quarter of 2019 we concluded that an additional $ 182 million goodwill impairment charge was necessary based on further deterioration in the Panamanian reporting unit’s operating results.

These impairments primarily resulted from the impact of a significant increase in competition, particularly with respect to our prepaid mobile business.

The accumulation of prepaid mobile subscriber losses, together with associated adverse impacts to average monthly subscription revenue per mobile subscriber, negatively impacted the actual results during these periods and the expected future financial performance of the Panamanian reporting unit, resulting in the impairments during 2018 and 2019.

As of December 31, 2019 , the goodwill balance of the Panamanian reporting unit was $ 794 million .

During our 2017 annual goodwill impairment test, we concluded impairments were necessary at certain C&W reporting units primarily as a result of greater than expected impacts of competition and, in the case of one smaller C&W reporting unit, a longer expected recovery period from Hurricane Irma.

Hurricane Dorian .

In September 2019, our operations in the Bahamas, which is part of our C&W segment, were impacted by Hurricane Dorian resulting in significant damage to homes, businesses and infrastructure.

Based on our initial estimates of the impacts of the hurricane to our operations, during the third quarter of 2019, we recorded an impairment charge of $ 16 million to write-off the net carrying amount of property and equipment that was damaged beyond repair.

We evaluate goodwill and other indefinite-lived intangible assets (primarily spectrum licenses and cable television franchise rights) for impairment at least annually on October 1 and whenever facts and circumstances indicate that their carrying amounts may not be recoverable as further outlined in note 3.

Based upon our October 1, 2020 evaluation, we did not identify any impairments of such assets.

However, declines in the estimated fair value of certain reporting units within our C&W Caribbean and Networks segment or our C&W Panama segment could result in the need to record goodwill impairment charges.

If, among other factors, (i) our equity values were to decline significantly or (ii) the adverse impacts stemming from COVID-19 (as defined below), competition, economic, regulatory or other factors, including macro-economic and demographic trends, were to cause our results of operations or cash flows to be worse than anticipated, we could conclude in future periods

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

2017 Hurricanes .

In September 2017, certain of our operations in the Caribbean were severely impacted by the 2017 Hurricanes , with the most extensive damage occurring in Puerto Rico and certain of C&W ’s markets.

Based on our then estimates of the impacts on our operations from these hurricanes, we recorded impairment charges to reduce the carrying values of our goodwill, property and equipment and other indefinite-lived intangible assets as set forth in the table above.

These impairment charges were based on our assessments of then currently available information.

For additional information regarding the impacts of the hurricanes and the fair value methods and related assumptions used in our impairment assessments, see note 6 .

Changes in the carrying amount of our goodwill during 2019 are set forth below:

January 1, 2019

Foreign currency translation

adjustments and other

December 31, 2019

VTR/Cabletica

Liberty Puerto Rico

Based on the results of our 2019 goodwill impairment tests, declines in the estimated fair value of certain C&W reporting units could result in the need to record additional goodwill impairment charges.

If, among other factors, (i) our equity values were to decline significantly or (ii) the adverse impacts of competition, economic, regulatory or other factors, including macro-economic and demographic trends, were to cause our results of operations or cash flows to be worse than anticipated, we could conclude in future periods that impairment charges are required in order to reduce the carrying values of the goodwill and, to a lesser extent, other long-lived assets of C&W .

that impairment charges are required in order to reduce the carrying values of the goodwill and, to a lesser extent, other long-lived assets of our C&W Caribbean and Networks segment or our C&W Panama segment.

Any such impairment charges could be significant.

During the first quarter of 2020, the World Health Organization declared the outbreak of a novel strain of Coronavirus ( COVID-19 ) a “pandemic,” pointing to the sustained risk of further global spread.

COVID-19 has negatively impacted our results of operations and 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.

As a result of the impact of COVID-19 on our results of operations, we evaluated whether the facts and circumstances and available information resulted in the need for an impairment assessment for any of our long-lived assets, including goodwill, and during the second quarter of 2020 concluded assessments were required with respect to our goodwill, which resulted in goodwill impairments in our C&W Caribbean and Networks segment and our C&W Panama segment.

During our 2018 annual goodwill impairment test, we concluded a $ 608 million impairment was necessary for our C&W Panama segment and during the third quarter of 2019 we concluded that an additional $ 182 million goodwill impairment charge was necessary based on further deterioration in the C&W Panama segment's operating results.

These impairments primarily resulted from the impact of a significant increase in competition, particularly with respect to our prepaid mobile business.

The accumulation of prepaid mobile subscriber losses, together with associated adverse impacts to average monthly subscription revenue per mobile subscriber, negatively impacted the actual results during these periods and the then expected future financial performance of the Panamanian reporting unit, resulting in the impairments during 2018 and 2019.

Hurricane Dorian.

In September 2019, our operations in the Bahamas, which is part of our C&W Caribbean and Networks segment, were impacted by Hurricane Dorian resulting in significant damage to homes, businesses and infrastructure.

For additional information regarding the fair value methods and related assumptions used in our impairment assessments, see note 6.

Changes in the carrying amount of our goodwill during 2020 are set forth below:

January 1, 2018

Acquisitions and related adjustments

Impairments (a)

December 31, 2018

January 1, 2020 Acquisitions

adjustments Foreign currency translation

adjustments and other Impairments (a) December 31, 2020

C&W Caribbean and Networks $ 3,316.7 $ ( 12.0 ) $ ( 93.7 ) $ ( 99.0 ) $ 3,112.0

C&W Panama 794.1 — — ( 177.0 ) 617.1

VTR/Cabletica 517.9 — 8.6 — 526.5

Liberty Puerto Rico 277.7 352.2 — — 629.9

Amount primarily represents an impairment charge associated with the Panamanian reporting unit of our C&W segment.

At December 31, 2019 and 2018 , our accumulated goodwill impairments were $ 1,348 million and $ 1,166 million , respectively.

Total $ 4,906.4 $ 340.2 $ ( 85.1 ) $ ( 276.0 ) $ 4,885.5

(a) Amounts represent impairment charges associated with various reporting units based primarily on the economic impacts associated with COVID-19, as further described above.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

Changes in the carrying amount of our goodwill during 2019 are set forth below:

January 1, 2019 Acquisitions and related adjustments Disposition Foreign

and other Impairments (a) December 31,

C&W Caribbean and Networks $ 3,349.6 $ 37.1 $ ( 33.6 ) $ ( 36.4 ) $ — $ 3,316.7

C&W Panama 976.0 — — — ( 181.9 ) 794.1

VTR/Cabletica 530.0 8.3 — ( 20.4 ) — 517.9

Liberty Puerto Rico 277.7 — — — — 277.7

Total $ 5,133.3 $ 45.4 $ ( 33.6 ) $ ( 56.8 ) $ ( 181.9 ) $ 4,906.4

(a) Amount primarily relates to an impairment charge associated with the deterioration of the C&W Panama segment’s operating results, as further described above.

At December 31, 2020 and 2019, our accumulated goodwill impairments were $ 1,624 million and $ 1,348 million, respectively.

Property and Equipment, Net

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Estimated useful

December 31, 2019

Distribution systems

3 to 25 years

Customer premises equipment

Support equipment, buildings and land

3 to 40 years

December 31, 2020 December 31,

Distribution systems 3 to 25 years

$ 5,082.9 $ 4,299.6

Customer premises equipment 3 to 5 years

1,935.5 1,763.8

Support equipment, buildings and land 3 to 40 years

1,721.3 1,530.9

8,739.7 7,594.3

Accumulated depreciation ( 3,828.3 ) ( 3,293.2 )

Net carrying amount $ 4,911.4 $ 4,301.1

Depreciation expense related to our property and equipment was $ 731 million, $ 697 million and $ 641 million during 2020, 2019 and 2018, respectively.

We recorded non-cash increases to our property and equipment related to vendor financing arrangements of $ 99 million, $ 96 million and $ 54 million during 2020, 2019 and 2018, respectively.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

Intangible Assets Subject to Amortization, Net

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Amortization expense related to intangible assets with finite useful lives was $ 184 million, $ 174 million and $ 189 million during 2020, 2019 and 2018, respectively.

Based on our amortizable intangible asset balance at December 31, 2020, we expect that amortization expense will be as follows for the next five years and thereafter (in millions):

Thereafter 192.0

Total $ 858.9

Intangible Assets Not Subject to Amortization

The details of our intangible assets not subject to amortization are set forth below:

Spectrum licenses (a) $ 909.7 $ 8.4

Cable television franchise rights (b) 540.0 540.0

Other 15.9 12.4

Total intangible assets not subject to amortization $ 1,465.6 $ 560.8

(a) The 2020 amount includes an estimated $ 894 million attributable to the AT&T Acquisition.

For additional information regarding the assets acquired as part of the AT&T Acquisition, see note 4.

(b) Cable television franchise rights are held by Liberty Puerto Rico.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

Based on our amortizable intangible asset balance at December 31, 2019 , we expect that amortization expense will be as follows for the next five years and thereafter (in millions):

Intangible Assets Not Subject to Amortization

At December 31, 2019 and 2018 , our other indefinite-lived intangible assets aggregated $ 561 million and $ 563 million , respectively, including $ 540 million related to the cable television franchise rights of Liberty Puerto Rico at both December 31, 2019 and 2018 .

(10) Debt and Finance Lease Obligations

dollar equivalents of the components of our debt are as follows:

December 31, 2019

Estimated fair value (c)

Principal Amount

Unused borrowing capacity (b)

Borrowing Currency

US $ equivalent

December 31, 2020 Estimated fair value (c) Principal amount

rate (a) Unused borrowing capacity (b)

Borrowing currency US $ equivalent December 31, December 31,

2020 2019 2020 2019

Convertible Notes (d)

2.00 % $ — $ — $ 381.8 $ 430.1 $ 402.5 $ 402.5

6.74 % — — 2,435.8 2,270.9 2,270.0 2,120.0

C&W Credit Facilities

VTR Finance Senior Notes

VTR Credit Facilities

2.81 % (e) 769.7 1,834.7 2,017.1 1,856.2 2,006.1

VTR Notes 5.72 % — — 1,239.7 1,290.9 1,150.0 1,260.0

VTR Credit Facilities 4.78 % (f) 263.2 243.8 229.7 244.5 231.4

LPR Senior Secured Notes

6.75 % — — 1,389.4 1,278.3 1,290.0 1,200.0

LPR Credit Facilities

Cabletica Credit Facilities

Vendor financing (g)

5.14 % $ 125.0 125.0 1,002.5 1,012.1 1,000.0 1,000.0

Cabletica Credit Facilities (g) 8.39 % $ 15.0 15.0 119.3 123.8 119.6 124.8

Vendor financing (h) 2.50 % — — 168.1 167.7 168.1 167.7

Total debt before premiums, discounts and deferred financing costs

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

5.22 % $ 1,172.9 $ 8,815.1 $ 8,820.6 $ 8,500.9 $ 8,512.5

The following table provides a reconciliation of total debt before premiums, discounts and deferred financing costs to total debt and finance lease obligations:

Total debt before premiums, discounts and deferred financing costs

$ 8,500.9 $ 8,512.5

Premiums, discounts and deferred financing costs, net (d)

( 157.1 ) ( 146.1 )

Total carrying amount of debt

8,343.8 8,366.4

Finance lease obligations

Total debt and finance lease obligations

8,357.2 8,370.0

Current maturities of debt and finance lease obligations

( 161.9 ) ( 180.2 )

Long-term debt and finance lease obligations

Represents the weighted average interest rate in effect at December 31, 2019 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin.

$ 8,195.3 $ 8,189.8

(a) Represents the weighted average interest rate in effect at December 31, 2020 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin.

The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.

Unused borrowing capacity represents the maximum availability under the applicable facility at December 31, 2019 without regard to covenant compliance calculations or other conditions precedent to borrowing.

At December 31, 2019 , the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after completion of the December 31, 2019 compliance reporting requirements.

At December 31, 2019 , there were no restrictions on the respective subsidiary’s ability to make loans or distributions from this availability to Liberty Latin America or its subsidiaries or other equity holders.

The estimated fair values of our debt instruments are determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy).

(b) Unused borrowing capacity represents the maximum availability under the applicable facility at December 31, 2020 without regard to covenant compliance calculations or other conditions precedent to borrowing.

At December 31, 2020, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, both before and after completion of the December 31, 2020 compliance reporting requirements, except for available capacity under the VTR Revolving Credit Facilities that is currently limited to $ 185 million.

At December 31, 2020, and except as may be limited by tax and legal considerations, the presence of noncontrolling interests, foreign currency exchange restrictions with respect to certain C&W subsidiaries and other factors, there were no restrictions on

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

the respective subsidiary’s ability to upstream cash from this availability to Liberty Latin America or its subsidiaries or other equity holders.

(c) The estimated fair values of our debt instruments are determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy).

The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors.

For additional information regarding fair value hierarchies, see note 6.

The interest rate reflects the stated rate of the Convertible Notes .

(d) The interest rate reflects the stated rate of the Convertible Notes.

The effective interest rate of the Convertible Notes is 6.7 %, which considers the impact of the discount recorded in connection with the Conversion Option, as further described below.

The VTR Credit Facilities comprise certain CLP term loans and U.S.

(e) The C&W Credit Facilities unused borrowing capacity comprise certain U.S.

dollar and Trinidad & Tobago dollar revolving credit facilities.

For further information, see C&W Credit Facilities below.

(f) The VTR Credit Facilities comprise certain CLP term loans and U.S.

dollar and CLP revolving credit facilities, including unused borrowing capacity.

For further information, see VTR Credit Facilities below.

The Cabletica Credit Facilities comprise certain Costa Rican colón ( CRC ) and U.S.

(g) The Cabletica Credit Facilities comprise certain Costa Rican colón ( CRC ) and U.S.

dollar term loans and a U.S.

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For further information, see Cabletica Credit Facilities below.

Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our operating expenses and property and equipment additions.

(h) Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our operating expenses and property and equipment additions.

These obligations are generally due within one year and include VAT that was paid on our behalf by the vendor.

3 unchanged sentences

At December 31, 2020, except for our Convertible Notes (as defined and described below), all of our outstanding debt had been incurred by one of our four primary “borrowing groups”:

C&W , VTR Finance , Liberty Puerto Rico and Cabletica .

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

C&W, VTR, Liberty Puerto Rico and Cabletica.

Credit Facilities.

5 unchanged sentences

• In addition to certain mandatory prepayment events, the instructing group of lenders under the relevant credit facility may cancel the commitments thereunder and declare the loans thereunder due and payable after the applicable notice period following the occurrence of a change of control (as specified in the relevant credit facility);

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

• Our credit facilities contain certain customary events of default, the occurrence of which, subject to certain exceptions and materiality qualifications, would allow the instructing group of lenders to (i) cancel the total commitments, (ii) accelerate all outstanding loans and terminate their commitments thereunder and/or (iii) declare that all or part of the loans be payable on demand;

2 unchanged sentences

Senior and Senior Secured Notes.

Our C&W , VTR Finance and Liberty Puerto Rico borrowing groups have issued senior and/or senior secured notes.

Our C&W, VTR and Liberty Puerto Rico borrowing groups have issued senior and/or senior secured notes.

In general, our senior and senior secured notes (i) are senior obligations of each respective issuer within the relevant borrowing group that rank equally with all of the existing and future debt of such issuer and, in the case of our senior secured notes, are senior to all existing and future subordinated debt of each respective issuer within the relevant borrowing group, (ii) contain, in most instances, guarantees from other entities of the relevant borrowing group (as specified in the applicable indenture) and (iii) are secured by pledges over the shares of certain entities of the relevant borrowing group and, in certain instances, over substantially all of the assets of those entities.

4 unchanged sentences

• If the relevant issuer or certain of its subsidiaries (as specified in the applicable indenture) sell certain assets, such issuer must offer to repurchase the applicable notes at par, or if a change of control (as specified in the applicable indenture) occurs, such issuer must offer to repurchase all of the relevant notes at a redemption price of 101 %.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Liberty Latin America – Convertible Notes

In June 2019, Liberty Latin America issued $ 403 million principal amount of 2.0 % convertible senior notes (the Convertible Notes ) due July 15, 2024.

Interest on the Convertible Notes is payable semi-annually on January 15 and July 15, beginning on January 15, 2020.

Interest on the Convertible Notes is payable semi-annually on January 15 and July 15.

The Convertible Notes are general unsecured obligations of the Company and are structurally subordinated to all the debt and other liabilities of our subsidiaries.

Conversion Rights.

Subject to certain conditions, and adjustments if certain events occur (as specified in the indenture governing the Convertible Notes ), the Convertible Notes may be converted at a conversion rate initially equal to 44.9767 Class C common shares per $1,000 principal amount of the Convertible Notes (equivalent to an initial conversion price of approximately $ 22.23 per Class C common share), the “ Conversion Option ”.

Subject to certain conditions, and adjustments if certain events occur (as specified in the indenture governing the Convertible Notes), including the Rights Offering (as discussed further below), as of December 31, 2020, the Convertible Notes may be converted at a conversion rate equal to 48.4315 Class C common shares per $1,000 principal amount of the Convertible Notes (equivalent to a conversion price of approximately $ 20.65 per Class C common share), the “ Conversion Option ”.

Any conversions of the Convertible Notes may be settled, at the election of the Company, in cash, Class C common shares or a combination thereof.

In September 2020, we completed a Rights Offering, as defined and further described in note 19, whereby we issued 49,049,073 of our Class C common shares.

In connection with the Rights Offering, subject to certain anti-dilution provisions in the indenture governing the Convertible Notes, the conversion rate for the Convertible Notes was adjusted from 44.9767 to 48.4315 Class C common shares per $1,000 principal amount of the Convertible Notes.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

The Convertible Notes may be converted at the option of the holders at any time prior to the close of business on January 12, 2024, only under the following circumstances:

during any calendar quarter commencing after September 30, 2019 (and only during such calendar quarter), if the last reported sale price of our Class C common shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the applicable conversion price of the Convertible Notes on each applicable trading day;

• during any calendar quarter (and only during such calendar quarter), if the last reported sale price of our Class C common shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the applicable conversion price of the Convertible Notes on each applicable trading day;

• during the five consecutive business day period immediately after any five consecutive trading day period (the “measurement period”), in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of that measurement period was less than 98 % of the product of the last reported sale price of our Class C common shares and the conversion rate on each such trading day;

11 unchanged sentences

In addition, following certain corporate transactions that occur prior to the maturity date of the Convertible Notes or the delivery of a notice of redemption, we will increase the applicable conversion rate for a holder who elects to convert in connection with such corporate transactions or notice of redemption in certain circumstances by a number of additional Class C common shares, as described in the related indenture.

We used the net proceeds from the issuance of the Convertible Notes to (i) fund the cost of the Capped Calls, as defined and further described in note 19, and (ii) for other general corporate purposes, including funding a portion of the AT&T Acquisition.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

We used a portion of the net proceeds from the issuance of the Convertible Notes to fund the cost of the Capped Calls , as defined and further described in note 13 , and expect to use the remaining funds for other general corporate purposes, which may include funding a portion of the AT&T Acquisition .

The details of the outstanding C&W Notes as of December 31, 2020 are summarized in the following table:

principal amount

C&W Notes Maturity Interest

rate Borrowing

currency U.S.

$ equivalent Carrying

Senior Secured Notes:

2027 C&W Senior Secured Notes

September 7, 2027

2027 C&W Senior Secured Notes September 7, 2027 5.750 % $ 550.0 $ 550.0 $ 548.8

Senior Notes:

2026 C&W Senior Notes

October 15, 2026

2027 C&W Senior Notes

September 15, 2027

Amounts are inclusive or net of original issue premiums, discounts and deferred financing costs, as applicable .

2026 C&W Senior Notes October 15, 2026 7.500 % $ 500.0 500.0 494.8

2027 C&W Senior Notes September 15, 2027 6.875 % $ 1,220.0 1,220.0 1,217.1

Total $ 2,270.0 $ 2,260.7

(a) Amounts are inclusive or net of original issue premiums, discounts and deferred financing costs, as applicable .

Financing and Refinancing Transactions

C&W Senior Financing Designated Activity Company ( C&W Senior Financing ) was a special purpose financing entity, created for the primary purpose of facilitating certain debt offerings.

C&W was required to consolidate C&W Senior Financing as a result of the variable interests created by debt issued by C&W Senior Financing to C&W , for which C&W was considered the primary beneficiary.

C&W Senior Financing was dependent upon payments from C&W in order to service its payment obligations under the 2026 C&W Senior Notes and 2027 C&W Senior Notes , as further described below.

C&W Borrowing Group Refinancing Transactions .

In January 2020, C&W completed a series of transactions contemplated by and permitted under its existing debt agreements (the C&W Borrowing Group Refinancing Transactions ) that ultimately resulted in the 2026 C&W Senior Notes and the 2027 C&W Senior Notes (previously issued by C&W Senior Financing Designated Activity Company) instead being directly issued by a wholly-owned subsidiary of C&W, C&W Senior Finance Limited ( C&W Senior Finance ).

In connection with the C&W Borrowing Group Refinancing Transactions, the loans previously made by C&W Senior Financing Designated Activity Company are no longer outstanding.

The terms and conditions applicable to the 2026 C&W Senior Notes and the 2027 C&W Senior Notes otherwise remain substantively unchanged.

2027 C&W Senior Secured Notes .

3 unchanged sentences

In connection with this transaction, we recognized a net loss on debt modification and extinguishment of $ 6 million, which primarily includes the net effect of redemption premiums paid and the write-off of unamortized premiums and discounts.

2027 C&W Senior Secured Notes Add-on .

In January 2020, Sable issued an additional $ 150 million aggregate principal amount, at 106.0 % of par, under the existing 2027 C&W Senior Secured Notes indenture (the 2027 C&W Senior Secured Notes Add-on ).

The terms and conditions of the 2027 C&W Senior Secured Notes Add-on are consistent with the original indenture.

The net proceeds from the C&W Term Loan B-5 Facility (as defined and described below) and the 2027 C&W Senior Secured Notes Add-on were primarily used to repay in full the $ 1,640 million outstanding principal amount under the C&W Term Loan B-4 Facility (as defined and described below), including accrued and unpaid interest.

In connection with these transactions, we recognized a loss on debt modification and extinguishment of $ 3 million, which primarily includes the write-off of unamortized discounts and deferred financing costs.

2026 C&W Senior Notes.

In August 2017, C&W Senior Financing issued the 2027 C&W Senior Notes .

Interest on the 2027 C&W Senior Notes is payable semi-annually on January 15 and July 15.

C&W Senior Financing used the proceeds from the 2027 C&W Senior Notes issuance to fund a new term loan (the 2027 C&W Financing Loan ) with Sable , as the borrower and certain other C&W subsidiaries as guarantors.

The call provisions, maturity and applicable interest rate for the 2027 C&W Financing Loan are the same as those for the 2027 C&W Senior Notes .

C&W Senior Financing ’s obligations under the 2027 C&W Senior Notes are secured by interests over (i) certain of C&W Senior Financing ’s bank accounts and (ii) C&W Senior Financing ’s rights under the 2027 C&W Financing Loan .

The net proceeds from the C&W Term Loan B-3 Facility Add-on (as defined and described below) and the 2027 C&W Financing Loan were used (i) to redeem in full $ 1,250 million outstanding principal amount of senior notes, issued by Columbus prior to the Columbus Acquisition , and (ii) for general corporate purposes.

In connection with these transactions, we recognized a net loss on debt modification and extinguishment of $ 24 million , which includes the net effect of redemption premiums paid and the write-off of unamortized premiums.

In October 2018, the 2026 C&W Senior Notes were issued.

Interest on the 2026 C&W Senior Notes is payable semi-annually on April 15 and October 15.

The net proceeds from the 2026 C&W Senior Notes were partially used to (i) repurchase £ 63 million ($ 80 million, at the applicable rate) of outstanding principal under the 2019 C&W Senior Notes, as further described below, and (ii) redeem $ 275 million of outstanding principal under the 2022 C&W Senior Notes.

In connection with these transactions, we recognized a net

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

loss on debt modification and extinguishment of $ 13 million, which primarily includes the net effect of redemption premiums paid, the write-off of unamortized premiums, discounts and deferred financing costs and the payment of third-party costs.

2027 C&W Senior Notes Add-on A.

In April 2019, C&W Senior Financing issued an additional $ 300 million aggregate principal amount, at 99.205 % of par, under the existing 2027 C&W Senior Notes indenture (the 2027 C&W Senior Notes Add-on A ).

In April 2019, an additional $ 300 million aggregate principal amount was issued, at 99.205 % of par, under the existing 2027 C&W Senior Notes indenture (the 2027 C&W Senior Notes Add-on A ).

The net proceeds from the 2027 C&W Senior Notes Add-on A were primarily used to (i) repay in full the $ 170 million outstanding principal amount under the C&W Revolving Credit Facility and (ii) redeem $ 115 million of aggregate principal amount of the 2022 C&W Senior Notes according to the redemption terms of the related indenture, comprising (a) a 105.156 % redemption price and (b) accrued and unpaid interest on the redeemed notes.

1 unchanged sentence

2027 C&W Senior Notes Add-on B.

In July 2019, C&W Senior Financing issued an additional $ 220 million aggregate principal amount, at 103.625 % of par, under the existing 2027 C&W Senior Notes indenture (the 2027 C&W Senior Notes Add-on B ).

In July 2019, an additional $ 220 million aggregate principal amount was issued, at 103.625 % of par, under the existing 2027 C&W Senior Notes indenture (the 2027 C&W Senior Notes Add-on B ).

The net proceeds from the 2027 C&W Senior Notes Add-on B were primarily used to redeem the remaining aggregate principal amount of the 2022 C&W Senior Notes of $ 210 million according to the redemption terms of the related indenture, comprising (a) a 103.438 % redemption price and (b) accrued and unpaid interest on the redeemed notes.

In connection with this transaction, we recognized a net loss on debt modification and extinguishment of $ 4 million, which primarily includes the net effect of redemption premiums paid and the write-off of unamortized premiums.

2026 C&W Senior Notes .

In October 2018 , C&W Senior Financing issued the 2026 C&W Senior Notes .

Interest on the 2026 C&W Senior Notes is payable semi-annually on April 15 and October 15.

C&W Senior Financing used the proceeds from the 2026 C&W Senior Notes issuance to fund a new term loan (the 2026 C&W Financing Loan ) with Sable as borrower and together with certain other C&W subsidiaries as guarantors.

The call provisions, maturity and applicable interest rate for the 2026 C&W Financing Loan are the same as those for the 2026 C&W Senior Notes .

C&W Senior Financing ’s obligations under the 2026 C&W Senior Notes are secured by interests over (i) certain of C&W Senior Financing ’s bank accounts and (ii) C&W Senior Financing ’s rights under the 2026 C&W Financing Loan .

The net proceeds from the 2026 C&W Financing Loan were partially used to (i) repurchase £ 63 million ( $ 80 million , at the applicable rate) of outstanding principal under the 2019 C&W Senior Notes , as further described below, and (ii) redeem $ 275 million of outstanding principal under the 2022 C&W Senior Notes .

In connection with these transactions, we recognized a net loss on debt modification and extinguishment of $ 13 million , which primarily includes the net effect of redemption premiums paid, the write-off of unamortized premiums, discounts and deferred financing costs and the payment of third-party costs.

Redemption Rights.

1 unchanged sentence

• The 2026 C&W Senior Notes, 2027 C&W Senior Notes and 2027 C&W Senior Secured Notes are non-callable until October 15, 2021, September 15, 2022 and September 7, 2022, respectively.

At any time prior to (i) October 15, 2021 in the case of the 2026 C&W Senior Notes , (ii) September 15, 2022 in the case of the 2027 C&W Senior Notes and (iii) September 7, 2022 in the case of the 2027 C&W Senior Secured Notes , Sable and C&W Senior Financing (as applicable) may redeem some or all of the applicable notes by paying a price equal to 100 % of the principal amount of the applicable notes redeemed plus accrued and unpaid interest and a “make-whole” premium, which is generally the present value of all remaining scheduled interest payments to October 15, 2021 , September 15, 2022 or September 7, 2022 (as applicable) using the discount rate (as specified in the indenture) as of the redemption date plus 50 basis points .

• At any time prior to (i) October 15, 2021 in the case of the 2026 C&W Senior Notes, (ii) September 15, 2022 in the case of the 2027 C&W Senior Notes and (iii) September 7, 2022 in the case of the 2027 C&W Senior Secured Notes, Sable and C&W Senior Finance (as applicable) may redeem some or all of the applicable notes by paying a price equal to 100 % of the principal amount of the applicable notes redeemed plus accrued and unpaid interest and a “make-whole” premium, which is generally the present value of all remaining scheduled interest payments to October 15, 2021, September 15, 2022 or September 7, 2022 (as applicable) using the discount rate (as specified in the indenture) as of the redemption date plus 50 basis points.

• At any time prior to (i) October 15, 2021 in the case of the 2026 C&W Senior Notes, (ii) September 15, 2022 in the case of the 2027 C&W Senior Notes and (iii) September 7, 2022 in the case of the 2027 C&W Senior Secured Notes, subject to certain restrictions (as specified in the applicable indenture), up to 40 % of each of the 2026 C&W Senior Notes, 2027 C&W Senior Notes and 2027 C&W Senior Secured Notes may be redeemed with the net proceeds of one or more specified equity offerings at a redemption price equal to 107.500 %, 106.875 % and 105.750 %, respectively, of the principal amount redeemed, plus accrued and unpaid interest and additional amounts (as specified in the applicable indenture), if any, to the applicable redemption date.

• Prior to September 7, 2022, during each 12-month period commencing on April 5, 2019, up to 10 % of the principal amount of the 2027 C&W Senior Secured Notes may be redeemed at a redemption price equal to 103 % of the principal amount redeemed plus accrued and unpaid interest to the redemption date.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

Prior to September 7, 2022 , during each 12-month period commencing on April 5, 2019, up to 10 % of the principal amount of the 2027 C&W Senior Secured Notes may be redeemed at a redemption price equal to 103 % of the principal amount redeemed plus accrued and unpaid interest to the redemption date.

Sable and C&W Senior Financing (as applicable) may redeem some or all of the 2026 C&W Senior Notes , 2027 C&W Senior Notes and 2027 C&W Senior Secured Notes , respectively, at the following redemption prices (expressed as a percentage of the principal amount) plus accrued and unpaid interest and additional amounts (as specified in the indenture), if any, to the applicable redemption date, as set forth below:

Sable and C&W Senior Finance (as applicable) may redeem some or all of the 2026 C&W Senior Notes, 2027 C&W Senior Notes and 2027 C&W Senior Secured Notes, respectively, at the following redemption prices (expressed as a percentage of the principal amount) plus accrued and unpaid interest and additional amounts (as specified in the indenture), if any, to the applicable redemption date, as set forth below:

Redemption Price

2026 C&W Senior Notes

2027 C&W Senior Notes

2027 C&W Senior Secured Notes

2026 C&W Senior Notes 2027 C&W Senior Notes 2027 C&W Senior Secured Notes

12-month period commencing:

October 15 September 15 September 7

2021 103.750 % N.A.

2022 101.875 % 103.438 % 102.875 %

2023 100.000 % 101.719 % 101.438 %

2024 100.000 % 100.859 % 100.000 %

2025 and thereafter 100.000 % 100.000 % 100.000 %

7 unchanged sentences

In March 2019, C&W repaid in full the outstanding principal amount under the 2019 C&W Senior Notes for total consideration of £ 91 million ($ 120 million at the transaction date), including accrued interest of £ 7 million ($ 9 million at the transaction date).

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

C&W Credit Facilities

1 unchanged sentence

The details of our borrowings under the C&W Credit Facilities as of December 31, 2020 are summarized in the following table:

Unused borrowing capacity

Outstanding principal amount

Unused borrowing capacity Outstanding principal amount

C&W Credit Facilities

Interest rate

Borrowing currency

US $ equivalent

Borrowing currency

US $ equivalent

C&W Revolving Credit Facility (b)

June 30, 2023

LIBOR (c) + 3.25%

C&W Term Loan B-4 Facility (b) (d)

January 31, 2026

LIBOR + 3.25%

C&W Regional Facilities (e)

various dates ranging from 2020 to 2038

Amounts are net of discounts and deferred financing costs, as applicable.

In March 2018, we amended and restated the credit agreement originally dated May 16, 2016, as amended and restated as of May 26, 2017, providing for the additional C&W Term Loan B-4 Facility , as further described below, and a $ 625 million revolving credit facility.

Maturity Interest rate Borrowing currency US $ equivalent Borrowing currency US $ equivalent Carrying

C&W Revolving Credit Facility (b) January 30, 2026 LIBOR (c) + 3.25 %

$ 625.0 $ 625.0 $ — $ — $ —

C&W Term Loan B-5 Facility January 31, 2028 LIBOR + 2.25 %

$ — — $ 1,510.0 1,510.0 1,492.2

C&W Regional Facilities (d) various dates ranging from 2021 to 2038 4.60 % (e)

(f) 144.7 (g) 346.2 345.1

Total $ 769.7 $ 1,856.2 $ 1,837.3

(a) Amounts are net of discounts and deferred financing costs, as applicable.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

(b) Includes $ 50 million that matures on June 30, 2023.

The C&W Revolving Credit Facility has a fee on unused commitments of 0.5 % per year.

London Interbank Offered Rate.

Subsequent to December 31, 2019, the outstanding principal amount under the C&W Term Loan B-4 Facility was repaid in full.

For additional information, see note 21 .

Primarily represents amounts borrowed by C&W Panama , C&W Jamaica and Columbus Communications Trinidad Limited (collectively, the C&W Regional Facilities ).

Represents a weighted average rate for all C&W Regional Facilities .

The unused borrowing capacity on the C&W Regional Facilities comprise certain U.S.

(d) Primarily represents credit facilities at CWP, C&W Jamaica and Columbus Communications Trinidad Limited (collectively, the C&W Regional Facilities ).

(e) Represents a weighted average rate for all C&W Regional Facilities.

(f) The unused borrowing capacity on the C&W Regional Facilities comprise certain U.S.

dollar and Trinidad & Tobago dollar denominated revolving credit facilities.

The outstanding principal amount on the C&W Regional Facilities comprise certain U.S.

dollar, JMD , Trinidad & Tobago dollar and East Caribbean dollar denominated credit facilities.

(g) The outstanding principal amount on the C&W Regional Facilities comprise certain U.S.

dollar, JMD and East Caribbean dollar denominated credit facilities .

Financing and Refinancing Transactions

C&W Revolving Credit Facility .

In connection with the UTS Acquisition during the first quarter of 2019, C&W borrowed $ 170 million under the C&W Revolving Credit Facility .

The outstanding principal amount of the C&W Revolving Credit Facility , including accrued interest, was repaid in full during the second quarter of 2019.

C&W Term Loan B-5 Facility .

In January 2020, Coral-US Co-Borrower LLC, a wholly-owned subsidiary of C&W, entered into a LIBOR plus 2.25 % $ 1,510 million principal amount term loan facility (the C&W Term Loan B-5 Facility ), issued at par, due January 31, 2028.

Interest is payable monthly beginning on February 28, 2020.

As further described above, the net proceeds from the C&W Term Loan B-5 Facility and the 2027 C&W Senior Secured Notes Add-on were primarily used to repay in full the $ 1,640 million outstanding principal amount under the C&W Term Loan B-4 Facility, including accrued and unpaid interest.

C&W Term Loan B-4 Facility.

In February 2018, C&W entered into a $ 1,875 million principal amount term loan facility (the C&W Term Loan B-4 Facility ).

The net proceeds of the C&W Term Loan B-4 Facility were used to repay in full the $ 1,825 million outstanding principal amount of the C&W Term Loan B-3 Facility , as further described below, and repay $ 40 million drawn under the C&W Revolving Credit Facility .

The net proceeds of the C&W Term Loan B-4 Facility were used to repay in full the $ 1,825 million then outstanding principal amount of the C&W Term Loan B-3 Facility and repay $ 40 million drawn under the C&W Revolving Credit Facility.

The exchange in principal amounts of $ 1,825 million was treated as a non-cash transaction in our consolidated statement of cash flows.

In connection with this transaction, we recognized a loss on debt modification and extinguishment of $ 13 million, which includes the write-off of unamortized discounts and deferred financing costs.

C&W Revolving Credit Facility .

In January 2020, the maturity date associated with $ 575 million of the existing $ 625 million C&W Revolving Credit Facility was extended to January 30, 2026.

All other terms and conditions of the revolving credit facility remain unchanged.

In March 2020, we borrowed $ 313 million under the C&W Revolving Credit Facility.

This drawdown was fully repaid in 2020.

In connection with the UTS Acquisition during the first quarter of 2019, C&W borrowed $ 170 million under the C&W Revolving Credit Facility.

The outstanding principal amount of the C&W Revolving Credit Facility, including accrued interest, was repaid in full in 2019.

C&W Regional Facilities.

In January 2018, CWP entered into a $ 100 million principal amount term loan facility that bears interest at 4.35 % per annum, payable on a quarterly basis, and matures in January 2023.

The proceeds from the term loan were primarily used to repay existing CWP debt.

In June 2020, CWP refinanced this term loan facility to extend the maturity to March 17, 2025.

All other terms and conditions of this facility remain unchanged.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

C&W Regional Facilities .

In January 2018, C&W Panama entered into a $ 100 million principal amount term loan facility that bears interest at 4.35 % per annum, payable on a quarterly basis, and matures in January 2023.

The proceeds from the term loan were primarily used to repay existing C&W Panama debt.

C&W Term Loan B-3 Facility .

In May 2017, C&W entered into a $ 1,125 million term loan facility (the C&W Term Loan B-3 Facility ).

The net proceeds from the C&W Term Loan B-3 Facility were used to prepay in full $ 1,100 million outstanding principal amount under term loans issued in May 2016 (the C&W Term Loans ).

Certain lenders of the C&W Term Loans novated $ 929 million principal amount under the C&W Term Loans into the C&W Term Loan B-3 Facility , which was treated as a non-cash financing transaction in our consolidated statement of cash flows.

In connection with these transactions, we recognized a loss on debt modification and extinguishment of $ 25 million , which primarily includes the write-off of unamortized discounts and deferred financing costs and the payment of third-party costs.

VTR Finance Senior Notes

In January 2014, VTR Finance issued $ 1.4 billion principal amount of senior notes (the VTR Finance Senior Notes ), due January 15, 2024.

In October 2018, VTR Finance redeemed $ 140 million of aggregate principal amount of the VTR Finance Senior Notes for total consideration of $ 147 million , including (i) the 103 % redemption price and (ii) accrued and unpaid interest on the redeemed notes.

In connection with this transaction, VTR Finance recognized a loss on debt modification and extinguishment of $ 6 million , which includes the net effect of redemption premiums paid and the write-off of deferred financing costs.

At December 31, 2019 , the carrying value of the VTR Finance Senior Notes was $ 1,246 million .

VTR Finance may redeem all or part of the VTR Finance Senior Notes at the following redemption prices (expressed as a percentage of the principal amount) plus accrued and unpaid interest and additional amounts (as specified in the related indenture), if any, to the applicable redemption date, as set forth below:

The details of our outstanding VTR Notes as of December 31, 2020 are summarized in the following table:

Maturity Interest Rate Outstanding principal amount Carrying value (a)

2028 VTR Senior Secured Notes January 15, 2028 5.125 % $ 600.0 $ 596.6

2028 VTR Senior Notes July 15, 2028 6.375 % 550.0 533.7

$ 1,150.0 $ 1,130.3

(a) Amounts are net of deferred financing costs.

Financing and Refinancing Transactions

2028 VTR Senior Secured Notes.

In July 2020, VTR Comunicaciones SpA, a wholly-owned subsidiary of VTR, issued $ 600 million aggregate principal amount, at par, of 5.125 % senior secured notes (the 2028 VTR Senior Secured Notes ) due January 15, 2028.

Interest on the 2028 VTR Senior Secured Notes is payable semi-annually on January 15 and July 15, commencing on January 15, 2021.

The net proceeds of $ 1,133 million from the 2028 VTR Senior Secured Notes and the 2028 VTR Senior Notes (as defined and described further below), together with $ 187 million of proceeds from the unwinding of certain derivative instruments, were used to redeem $ 1,260 million of outstanding principal amount under the then outstanding VTR Finance Senior Notes (as defined and discussed further below), including accrued and unpaid interest and a $ 29 million redemption premium.

In connection with these transactions, (i) $ 550 million was treated as a non-cash transaction in our consolidated statement of cash flows and (ii) we recognized a loss on debt modification and extinguishment of $ 42 million, which primarily includes the payment of the aforementioned redemption premium and the write-off of unamortized deferred financing costs.

Redemption Rights.

The 2028 VTR Senior Secured Notes may be redeemed, in whole or in part, at any time prior to July 15, 2023 at a price equal to 100 % of the principal amount of the notes redeemed, plus accrued and unpaid interest to (but excluding) the redemption date, and a “make whole” premium, as described in the 2028 VTR Senior Secured Notes indenture.

The 2028 VTR Senior Secured Notes may be redeemed, in whole or in part, at any time on or after July 15, 2023 at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid interest and additional amounts, if any, to the applicable redemption date, as set forth below:

Redemption Price

12-month period commencing January 15:

12-month period commencing July 15:

2023 102.563 %

2024 101.281 %

2025 and thereafter 100.000 %

In addition, at any time prior to July 15, 2023, subject to certain conditions specified in the 2028 VTR Senior Secured Notes indenture, we may redeem up to 40 % of the aggregate principal amount of the 2028 VTR Senior Secured Notes with the net proceeds of one or more specified equity offerings at a redemption price equal to 105.125 % of the principal amount of the notes redeemed, plus accrued and unpaid interest and additional amounts, if any, to the applicable redemption date.

Prior to July 15, 2023, during each 12-month period commencing on the July 1, 2020, we may redeem up to 10 % of the aggregate principal amount of the 2028 VTR Senior Secured Notes at a redemption price equal to 103 % of the principal amount of the notes redeemed, plus accrued and unpaid interest to (but excluding) the redemption date.

The 2028 VTR Senior Secured Notes are guaranteed by VTR.com SpA ( VTR.com ), a wholly-owned subsidiary of VTR, and are the senior obligations of VTR Comunicaciones SpA and VTR.com.

The 2028 VTR Senior Secured Notes are secured by first-ranking pledges over (i) all of the capital stock of the VTR Comunicaciones SpA and VTR.com and (ii) certain subordinated shareholder loans.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

2028 VTR Senior Notes.

In July 2020, VTR Finance N.V.

issued $ 550 million aggregate principal amount, at par, of 6.375 % senior notes (the 2028 VTR Senior Notes ) due July 15, 2028.

Interest on the 2028 VTR Senior Notes is payable semi-annually on January 15 and July 15, commencing on January 15, 2021.

Redemption Rights.

The 2028 VTR Senior Notes may be redeemed, in whole or in part, at any time prior to July 15, 2023 at a price equal to 100 % of the principal amount of the notes redeemed, plus accrued and unpaid interest to (but excluding) the redemption date, and a “make whole” premium, as described in the 2028 VTR Senior Notes indenture.

The 2028 VTR Senior Notes may be redeemed, in whole or in part, at any time on or after July 15, 2023 at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid interest and additional amounts, if any, to the applicable redemption date, as set forth below:

Redemption Price

12-month period commencing July 15:

2023 103.188 %

2024 101.594 %

2025 and thereafter 100.000 %

In addition, at any time prior to July 15, 2023, subject to certain conditions specified in the 2028 VTR Senior Notes indenture, we may redeem up to 40 % of the aggregate principal amount of the 2028 VTR Senior Notes with the net proceeds of one or more specified equity offerings at a redemption price equal to 106.375 % of the principal amount of the notes redeemed, plus accrued and unpaid interest and additional amounts, if any, to the applicable redemption date.

The 2028 VTR Senior Notes are the senior obligations of VTR and are secured by a pledge over all the shares of VTR.

VTR Finance Senior Notes.

In January 2014, VTR issued $ 1.4 billion principal amount of senior notes (the VTR Finance Senior Notes ), due January 15, 2024.

In October 2018, VTR redeemed $ 140 million of aggregate principal amount of the VTR Finance Senior Notes for total consideration of $ 147 million, including (i) the 103 % redemption price and (ii) accrued and unpaid interest on the redeemed notes.

In connection with this transaction, VTR recognized a loss on debt modification and extinguishment of $ 6 million, which includes the net effect of redemption premiums paid and the write-off of deferred financing costs.

In July 2020, as further described above, VTR redeemed the remaining $ 1,260 million principal amount of the VTR Finance Senior Notes.

VTR Credit Facilities

In May 2018, VTR entered into (i) the VTR TLB-1 Facility and the VTR TLB-2 Facility (collectively, the VTR Term Loan Facilities ) and (ii) new U.S.

In May 2018, VTR.com entered into (i) the VTR TLB-1 Facility and the VTR TLB-2 Facility (collectively, the VTR Term Loan Facilities ) and (ii) new U.S.

dollar and CLP revolving credit facilities (collectively, the VTR Revolving Credit Facilities and together with the VTR Term Loan Facilities, the VTR Credit Facilities ).

Upon closing of the VTR Credit Facilities , the previously existing credit facility at VTR was cancelled.

Upon closing of the VTR Credit Facilities, the previously existing credit facility at VTR.com was cancelled.

Liberty Latin America Ltd.

3 unchanged sentences

Unused borrowing

Outstanding principal amount

capacity Outstanding principal amount

VTR Credit Facilities

Interest rate

Borrowing currency

US $ equivalent

Borrowing currency

US $ equivalent

VTR TLB-1 Facility

ICP (c) + 3.80%

VTR TLB-2 Facility

VTR RCF–A (d)

TAB (e) + 3.35%

VTR RCF–B (f)

March 14, 2024

LIBOR + 2.75%

Amounts are net of deferred financing costs.

Under the terms of the credit agreement, VTR is obligated to repay 50 % of the outstanding aggregate principal amount of the VTR TLB-1 Facility on November 23, 2022 , with the remaining principal amount due on May 23, 2023 , which represents the ultimate maturity date of the facility.

Índice de Cámara Promedio rate.

In March 2019, the commitment under the VTR RCF – A was increased to CLP 45 billion ( $ 60 million ).

The VTR RCF – A has a fee on unused commitments of 1.34 % per year.

Tasa Activa Bancaria rate.

Includes a $ 1 million credit facility that matures on May 23, 2023 .

Maturity Interest rate Borrowing currency US $ equivalent Borrowing currency US $ equivalent Carrying

VTR TLB-1 Facility (b) ICP (c) + 3.80 %

CLP — $ — CLP 140,900.0 $ 198.0 $ 195.5

VTR TLB-2 Facility May 23, 2023 7.00 % CLP — — CLP 33,100.0 46.5 45.9

VTR RCF–A (d) May 23, 2023 TAB (e) + 3.35 %

CLP 45,000.0 63.2 CLP — — —

VTR RCF–B (f) June 15, 2026 LIBOR + 2.75 %

$ 200.0 200.0 $ — — —

Total $ 263.2 $ 244.5 $ 241.4

(a) Amounts are net of deferred financing costs.

(b) Under the terms of the credit agreement, VTR.com is obligated to repay 50 % of the outstanding aggregate principal amount of the VTR TLB-1 Facility on November 23, 2022, with the remaining principal amount due on May 23, 2023, which represents the ultimate maturity date of the facility.

(d) The VTR RCF – A has a fee on unused commitments of 1.34 % per year.

(e) Tasa Activa Bancaria rate.

(f) Includes a $ 1 million credit facility that matures on May 23, 2023.

The VTR RCF – B has a fee on unused commitments of 1.10 % per year.

Financing and Refinancing Transactions

VTR RCF – A .

In March 2019, the commitment under the VTR RCF – A was increased to CLP 45 billion ($ 63 million).

VTR RCF – B .

In March 2020, we borrowed $ 92 million under the VTR RCF – B.

In June 2020, (i) the drawdown was fully repaid and (ii) the commitment under the VTR RCF – B was increased to $ 200 million and the term was extended to June 15, 2026.

LPR Senior Secured Notes

In October 2019, LCPR Senior Secured Financing Designated Activity Company ( LCPR Senior Secured Financing ) issued $ 1.2 billion principal amount, at par, of 6.75 % senior secured notes, due October 15, 2027 (the 2027 LPR Senior Secured Notes ).

Interest is payable semi-annually on April 15 and October 15, with the first interest payment due on April 15, 2020.

Interest is payable semi-annually on April 15 and October 15.

LCPR Senior Secured Financing is a special purpose financing entity, created for the primary purpose of facilitating the issuance of certain debt offerings.

A subsidiary of Leo Cable is required to consolidate LCPR Senior Secured Financing as a result of certain variable interests in LCPR Senior Secured Financing , of which the subsidiary is considered the primary beneficiary.

Liberty Mobile is required to consolidate LCPR Senior Secured Financing as a result of certain variable interests in LCPR Senior Secured Financing, of which Liberty Mobile is considered the primary beneficiary.

Subject to the circumstances described below:

• The 2027 LPR Senior Secured Notes are non-callable until October 15, 2022.

At any time prior to October 15, 2022 , LCPR Senior Secured Financing may redeem some or all of the 2027 LPR Senior Secured Notes by paying a price equal to 100 % of the principal amount of the 2027 LPR Senior Secured Notes redeemed plus accrued and unpaid interest and a “make-whole” premium, which is generally the present value of all remaining scheduled interest payments to October 15, 2022 using the discount rate (as specified in the indenture) as of the redemption date plus 50 basis points .

At any time prior to October 15, 2022 , subject to certain restrictions (as specified in the indenture), up to 40 % of the 2027 LPR Senior Secured Notes may be redeemed with the net proceeds of one or more specified equity offerings at a redemption price equal to 106.750 % of the principal amount redeemed, plus accrued and unpaid interest and additional amounts (as specified in the indenture), if any, to the redemption date.

• At any time prior to October 15, 2022, LCPR Senior Secured Financing may redeem some or all of the 2027 LPR Senior Secured Notes by paying a price equal to 100 % of the principal amount of the 2027 LPR Senior Secured Notes redeemed plus accrued and unpaid interest and a “make-whole” premium, which is generally the present value of all

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

remaining scheduled interest payments to October 15, 2022 using the discount rate (as specified in the indenture) as of the redemption date plus 50 basis points.

• At any time prior to October 15, 2022, subject to certain restrictions (as specified in the indenture), up to 40 % of the 2027 LPR Senior Secured Notes may be redeemed with the net proceeds of one or more specified equity offerings at a redemption price equal to 106.750 % of the principal amount redeemed, plus accrued and unpaid interest and additional amounts (as specified in the indenture), if any, to the redemption date.

• Prior to October 15, 2022, during each 12-month period commencing on October 9, 2019, up to 10 % of the principal amount of the 2027 LPR Senior Secured Notes may be redeemed at a redemption price equal to 103 % of the principal amount redeemed, plus accrued and unpaid interest and additional amounts (as specified in the indenture), if any, to the redemption date.

2 unchanged sentences

12-month period commencing October 15:

2022 103.375 %

2023 101.688 %

2024 and thereafter 100.000 %

In the event that the AT&T Acquisition is not or will not be consummated on or before April 9, 2021 (the Long-Stop Date ), LCPR Senior Secured Financing will be required to redeem all of the 2027 LPR Senior Secured Notes at a redemption price equal to 100 % of the principal amount redeemed, plus accrued and unpaid interest and additional amounts, if any, to the redemption date.

The net proceeds from the 2027 LPR Senior Secured Notes were deposited into escrow.

The escrow may be released subject to the satisfaction of certain conditions, including the consummation of the AT&T Acquisition .

On the escrow release date, the escrowed proceeds, including the SPV Escrowed Proceeds ( as defined and described below), will be used to fund one or more loans to a wholly-owned subsidiary of Liberty Latin America .

The payment of all obligations under such loans will be guaranteed by LCPR and certain of its affiliates and their respective significant subsidiaries, and all the issued capital stock or share capital of LCPR and each guarantor, and substantially all assets of LCPR and each guarantor will be pledged to secure the payment of such obligations.

Such loans and a capital contribution from Liberty Latin America will be used to finance the AT&T Acquisition and to pay related fees and expenses.

Until the AT&T Acquisition closes, the cash in escrow from the (i) 2027 LPR Senior Secured Notes and (ii) SPV Escrowed Proceeds are included in restricted cash in our consolidated balance sheet.

The net proceeds from the 2027 LPR Senior Secured Notes, the 2027 LPR Senior Secured Notes Add-on (as defined and described below) and the SPV Escrowed Proceeds (as defined and described below) were deposited into escrow (collectively, the “ AT&T Acquisition Restricted Cash ”), subsequently released upon consummation of the AT&T Acquisition and used to fund one or more loans to a wholly-owned subsidiary of Liberty Puerto Rico.

The payment of all obligations under such loans are guaranteed by LCPR and certain of its affiliates and their respective significant subsidiaries, and all the issued capital stock or share capital of LCPR and each guarantor, and substantially all assets of LCPR and each guarantor is pledged to secure the payment of such obligations.

Such loans and a capital contribution from Liberty Latin America were used to finance the AT&T Acquisition and to pay related fees and expenses.

At December 31, 2019, the AT&T Acquisition Restricted Cash was included in restricted cash in our consolidated balance sheet.

At December 31, 2020, the carrying value of the 2027 LPR Senior Secured Notes was $ 1,265 million.

Financing Transactions

2027 LPR Senior Secured Notes Add-on .

In May 2020, LCPR Senior Secured Financing Designated Activity Company ( LCPR Senior Secured Financing ) issued an additional $ 90 million aggregate principal amount, at 102.5 % of par, under the existing 2027 LPR Senior Secured Notes indenture (the 2027 LPR Senior Secured Notes Add-on ).

The terms and conditions of the 2027 LPR Senior Secured Notes Add-on are consistent with the original indenture.

As further described above, the net proceeds from the 2027 LPR Senior Secured Notes Add-on were deposited into escrow and subsequently released upon consummation of the AT&T Acquisition.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

LPR Credit Facilities

1 unchanged sentence

The details of our borrowings under the LPR Credit Facilities as of December 31, 2020 are summarized in the following table:

LPR Credit Facilities

Interest rate

LPR Credit Facilities Maturity Interest rate Facility

(in borrowing

Outstanding principal amount

2019 LPR Revolving Credit Facility (b)

October 15, 2025

LIBOR + 3.50%

currency) Unused

capacity Outstanding principal amount Carrying

LPR Revolving Credit Facility (b) October 15, 2025 LIBOR + 3.50 %

$ 125.0 $ 125.0 $ — $ —

2026 SPV Credit Facility

October 15, 2026

Amounts are net of discounts and deferred financing costs.

The 2019 LPR Revolving Credit Facility has a fee on unused commitments of 0.5 % per year.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

October 15, 2026 LIBOR + 5.0 %

$ 1,000.0 — 1,000.0 985.5

Total $ 125.0 $ 1,000.0 $ 985.5

(a) Amounts are net of discounts and deferred financing costs.

(b) The LPR Revolving Credit Facility has a fee on unused commitments of 0.5 % per year.

Financing Transactions

4 unchanged sentences

LCPR is required to consolidate LCPR Loan Financing as a result of certain variable interests in LCPR Loan Financing, for which LCPR is considered the primary beneficiary.

LCPR Loan Financing used the proceeds from the 2026 SPV Credit Facility to (i) fund a new $ 947 million term loan (the LPR Financing Loan ) to LCPR and (ii) deposit $ 53 million , which will fund a portion of the purchase price associated with the AT&T Acquisition , into escrow (the SPV Escrowed Proceeds ).

LCPR Loan Financing used the proceeds from the 2026 SPV Credit Facility to (i) fund a new $ 947 million term loan (the LPR Financing Loan ) to LCPR and (ii) deposit $ 53 million into escrow (the SPV Escrowed Proceeds ), which was ultimately used to fund a portion of the AT&T Acquisition.

The terms and conditions, including maturity and applicable interest rate, for the LPR Financing Loan are the same as those for the 2026 SPV Credit Facility.

LCPR Loan Financing’s obligations under the 2026 SPV Credit Facility are secured by interests over various assets, as further described in the 2026 SPV Credit Facility agreement.

In the event that the AT&T Acquisition is not or will not be consummated, LCPR Loan Financing will be required to apply the SPV Escrowed Proceeds in partial prepayment of the 2026 SPV Credit Facility , together with accrued and unpaid interest to such date of prepayment.

In the event that the AT&T Acquisition is consummated and the purchase price for the AT&T Acquisition is reduced in excess of 10 % , LCPR Loan Financing will be required to apply the portion of the SPV Escrowed Proceeds that was not used towards the purchase price of the AT&T Acquisition in partial prepayment of the 2026 SPV Credit Facility , together with accrued and unpaid interest to such date of prepayment.

The net proceeds from the LPR Financing Loan were used to redeem, in full, the $ 923 million outstanding principal amount of the LPR Bank Facility .

The net proceeds from the LPR Financing Loan were used to redeem, in full, the $ 923 million then outstanding principal amount of the LPR Bank Facility.

This borrowing and repayment activity was treated as a non-cash transaction in our consolidated statement of cash flows.

2 unchanged sentences

In October 2019, LCPR entered into a LIBOR plus 3.5 %, 6 -year senior secured credit facility agreement providing for $ 125 million of revolving commitments (the LPR Revolving Credit Facility ).

The 2019 LPR Revolving Credit Facility has a fee on unused commitments of 0.5 % per year.

Upon closing of the LPR Revolving Credit Facility, the previously existing revolving credit facility at LCPR was cancelled.

In the event that the AT&T Acquisition is not or will not be consummated on or before the Long-Stop Date , the aggregate principal amount available for borrowing under the 2019 LPR Revolving Credit Facility will be reduced by $ 63 million .

In March 2020, we borrowed $ 63 million under the LPR Revolving Credit Facility.

This drawdown was fully repaid in 2020.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

LPR Bank Facility .

During the second quarter of 2019, LCPR repaid $ 20 million of principal outstanding under the LPR Bank Facility .

As noted above, the LPR Bank Facility was fully repaid in the fourth quarter of 2019.

During 2017, LCPR borrowed $ 85 million under the then existing LPR First Lien Term Loan .

The net proceeds were used to prepay $ 85 million of the outstanding principal amount under the then existing LPR Second Lien Term Loan .

This borrowing and repayment activity was treated as a non-cash transaction in our consolidated statement of cash flows.

Cabletica Credit Facilities

1 unchanged sentence

The details of our borrowings under the Cabletica Credit Facilities as of December 31, 2020 are summarized in the following table:

Unused borrowing capacity

Outstanding principal

Unused borrowing capacity Outstanding principal

Cabletica Credit Facilities

Interest rate

Borrowing currency

Carrying value (a)

Maturity Interest rate Borrowing currency U.S.

$ equivalent Borrowing currency U.S.

$ equivalent Carrying value (a)

Cabletica Term Loan B-1 Facility

LIBOR + 5.00%

(b) LIBOR + 5.50 % (c)

$ — $ — $ 49.2 $ 49.2 $ 44.4

Cabletica Term Loan B-2 Facility

TBP (c) + 6.00%

Cabletica Revolving Credit Facility (d)

October 5, 2023

LIBOR + 4.25%

Amounts are net of deferred financing costs.

Under the terms of the credit agreement, Cabletica is obligated to repay 50 % of the outstanding aggregate principal amounts of the Cabletica Term Loan B-1 Facility and the Cabletica Term Loan B-2 Facility on April 5, 2023 , with the remaining respective principal amounts due on October 5, 2023 , which represents the ultimate maturity date of each facility.

Tasa Básica Pasiva rate.

The Cabletica Revolving Credit Facility has a fee on unused commitments of 1.70 % per year.

(b) TBP (d) + 6.75 %

CRC — — CRC 43,177.4 70.4 68.7

Cabletica Revolving Credit Facility (e) August 1, 2024 LIBOR + 4.25 %

$ 15.0 15.0 $ — — —

$ 15.0 $ 119.6 $ 113.1

(a) Amounts are net of deferred financing costs.

(b) Under the terms of the credit agreement, Cabletica is obligated to repay 50 % of the outstanding aggregate principal amounts of the Cabletica Term Loan B-1 Facility and the Cabletica Term Loan B-2 Facility on February 1, 2024, with the remaining respective principal amounts due on August 1, 2024, which represents the ultimate maturity date of each facility.

(d) Tasa Básica Pasiva rate.

(e) The Cabletica Revolving Credit Facility has a fee on unused commitments of 1.70 % per year.

Financing and Refinancing Transactions

In November 2020, we amended and restated the Cabletica Credit Facilities credit agreement, which included (i) an upsize of the Cabletica Term Loan B-1 Facility by $ 228 million, (ii) an upsize of the Cabletica Term Loan B-2 Facility by $ 59 million, which is expected to be converted to the CRC denominated facility upon close of the Telefónica-Costa Rica Acquisition, and (iii) replacing the existing Cabletica Revolving Credit Facility with a new $ 15 million revolving credit facility.

The upsize commitments under the Cabletica Term Loan B-1 Facility and Cabletica Term Loan B-2 Facility remain undrawn at December 31, 2020 and are contingent upon closing of the Telefónica-Costa Rica Acquisition.

These undrawn amounts are also subject to ticking fees, currently estimated to be approximately 2 % per year through the closing date of the Telefónica-Costa Rica Acquisition.

Liberty Latin America Ltd.

5 unchanged sentences

dollar equivalents based on December 31, 2020 exchange rates.

Liberty Puerto Rico

Liberty Latin America (a)

C&W VTR Liberty Puerto Rico Cabletica Liberty Latin America (a) Consolidated

Years ending December 31:

2021 $ 59.9 $ 99.6 $ — $ — $ 0.5 $ 160.0

2022 17.6 99.0 — — 0.6 117.2

2023 124.3 145.5 — — 0.8 270.6

2024 62.2 — — 119.6 403.0 584.8

2025 146.0 — — — — 146.0

Thereafter 3,782.3 1,150.0 2,290.0 — — 7,222.3

Total debt maturities 4,192.3 1,494.1 2,290.0 119.6 404.9 8,500.9

Premiums, discounts and deferred financing costs, net

( 28.2 ) ( 22.8 ) ( 39.1 ) ( 6.5 ) ( 60.5 ) ( 157.1 )

Total debt $ 4,164.1 $ 1,471.3 $ 2,250.9 $ 113.1 $ 344.4 $ 8,343.8

Current portion $ 59.9 $ 99.6 $ — $ — $ 0.5 $ 160.0

Noncurrent portion $ 4,104.2 $ 1,371.7 $ 2,250.9 $ 113.1 $ 343.9 $ 8,183.8

Represents the amount held by Liberty Latin America on a standalone basis plus the aggregate amount held by subsidiaries of Liberty Latin America that are outside our borrowing groups.

Subsequent Events

For information regarding certain financing-related transactions completed subsequent to December 31, 2019, see note 21 .

(a) Represents the amount held by Liberty Latin America on a standalone basis plus the aggregate amount held by subsidiaries of Liberty Latin America that are outside our borrowing groups.

The following table provides details of our operating lease expense:

Year ended December 31,

2020 2019 2018 (a)

Operating lease expense:

Operating lease cost

$ 52.8 $ 45.7 $ 48.2

Short-term lease cost

Total operating lease expense

Amounts reflect operating lease expense recorded under ASC 840, Leases , prior to adoption of ASU 2016-02 on January 1, 2019.

$ 66.3 $ 56.1 $ 48.2

(a) Amounts reflect operating lease expense recorded under ASC 840, Leases , prior to adoption of ASU 2016-02 on January 1, 2019.

Accordingly, amounts are not comparable.

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December 31, 2020, 2019 and 2018

The following table provides certain other details of our operating leases at December 31, 2019 :

For the year ended December 31, 2019 (in millions):

Operating cash flows from operating leases

Right-of-use assets obtained in exchange for new operating lease liabilities (a)

As of December 31, 2019 (in millions):

Certain other details of our operating leases are set forth below:

Operating lease right-of-use assets $ 328.6 $ 150.9

Operating lease liabilities:

Current $ 63.2 $ 31.5

Noncurrent 269.7 119.2

Total operating lease liabilities $ 332.9 $ 150.7

Weighted-average remaining lease term

7.2 years 6.4 years

Weighted-average discount rate

Represents non-cash transactions associated with operating leases entered into during the year ended December 31, 2019 .

Year ended December 31,

Operating cash flows from operating leases $ 47.0 $ 46.2

Right-of-use assets obtained in exchange for new operating lease liabilities (a) $ 230.5 $ 48.0

(a) Represents non-cash transactions associated with operating leases entered into during the year, including $ 196 million acquired in connection with the AT&T Acquisition.

Maturities of Operating Leases

Maturities of our operating lease liabilities on an undiscounted basis as of December 31, 2019 are presented below along with the current and noncurrent operating lease liabilities on a discounted basis.

Such amounts represent U.S.

Maturities of our operating lease liabilities as of December 31, 2020 are presented below.

Amounts presented below represent U.S.

dollar equivalents (in millions) based on December 31, 2020 exchange rates.

Years ending December 31:

Thereafter 136.9

Total operating lease liabilities on an undiscounted basis

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Present value of operating lease liabilities

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

(12) Restructuring Liabilities

A summary of changes in our restructuring liabilities during 2020 is set forth in the table below:

termination Contract termination and other Total

Restructuring liability as of January 1, 2020 $ 19.0 $ 13.3 $ 32.3

Restructuring charges 13.2 11.6 24.8

UTS liabilities at acquisition date (a) 2.1 — 2.1

Cash paid ( 25.7 ) ( 10.4 ) ( 36.1 )

Foreign currency translation adjustments ( 5.0 ) 2.1 ( 2.9 )

Restructuring liability as of December 31, 2020 $ 3.6 $ 16.6 $ 20.2

Current portion $ 3.6 $ 14.3 $ 17.9

Noncurrent portion — 2.3 2.3

Period post Split-Off

We entered into a tax sharing agreement with Liberty Global (the Tax Sharing Agreement ) that became effective upon consummation of the Split-Off .

The Tax Sharing Agreement governs the parties’ respective rights, responsibilities and obligations with respect to taxes and tax benefits, the filing of tax returns, the control of audits and other tax matters.

Pursuant to the Tax Sharing Agreement , tax liabilities and benefits relating to taxable periods before and after the Split-Off will be computed and apportioned between Liberty Latin America and Liberty Global , and responsibility for payment of those tax liabilities (including any taxes attributable to the Split-Off and related internal restructurings) and use of those tax benefits, will be allocated between Liberty Latin America and Liberty Global .

Furthermore, the Tax Sharing Agreement sets forth the rights of Liberty Latin America and Liberty Global with respect to the preparation and filing of tax returns, the handling of audits or other tax proceedings and assistance and cooperation and other matters, in each case, for taxable periods ending on or before or that otherwise include the date of the Split-Off .

Total $ 3.6 $ 16.6 $ 20.2

(a) Represents an adjustment related to the completion of our purchase price accounting for the UTS Acquisition, as further discussed in note 4.

Our restructuring charges during 2020 primarily relate to reorganization programs at C&W Panama, C&W Caribbean and Networks and VTR.

Current and noncurrent restructuring liabilities are included in other accrued and current liabilities and other long-term liabilities, respectively, in our consolidated balance sheets.

A summary of changes in our restructuring liabilities during 2019 is set forth in the table below:

termination Contract termination and other Total

Restructuring liability as of January 1, 2019 $ 7.6 $ 18.0 $ 25.6

Restructuring charges 30.9 9.3 40.2

UTS liabilities at acquisition date 8.3 — 8.3

Cash paid ( 27.6 ) ( 13.0 ) ( 40.6 )

Foreign currency translation adjustments ( 0.2 ) ( 1.0 ) ( 1.2 )

Restructuring liability as of December 31, 2019 $ 19.0 $ 13.3 $ 32.3

Current portion $ 13.1 $ 10.5 $ 23.6

Noncurrent portion 5.9 2.8 8.7

Total $ 19.0 $ 13.3 $ 32.3

Our restructuring charges during 2019 primarily relate to employee severance and termination costs associated with reorganization programs at VTR, C&W Caribbean and Networks and C&W Panama.

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

Periods prior to Split-Off

Prior to the Split-Off , the income taxes of Liberty Latin America were presented on a standalone basis, and each tax paying entity or group within Liberty Latin America was presented on a separate return basis.

Liberty Latin America was included among Liberty Global subsidiaries that were included in combined or consolidated tax returns, including tax returns in the Netherlands (the Dutch Fiscal Unity ), the U.K.

Tax Group ) and the U.S.

These tax groups also included Liberty Global subsidiaries that were not included in Liberty Latin America .

Certain of the entities included in the Dutch Fiscal Unity , the U.K.

Tax Group and the U.S.

Tax Group were included in Liberty Latin America .

As a result, we recorded related-party tax allocations to recognize changes in the tax attributes of certain entities of Liberty Latin America that were included in the Dutch Fiscal Unity , the U.K.

Tax Group or the U.S.

A summary of changes in our restructuring liabilities during 2018 is set forth in the table below:

termination Contract termination and other Total

Restructuring liability as of January 1, 2018 $ 6.2 $ 25.4 $ 31.6

Restructuring charges 25.6 8.8 34.4

Cash paid ( 24.3 ) ( 13.5 ) ( 37.8 )

Foreign currency translation adjustments 0.1 ( 2.7 ) ( 2.6 )

Restructuring liability as of December 31, 2018 $ 7.6 $ 18.0 $ 25.6

Our restructuring charges during 2018 primarily relate to employee severance and termination costs associated with reorganization programs at C&W Caribbean and Networks, VTR and C&W Panama.

In addition to the restructuring charges set forth in the tables above, we also incurred $ 3 million, $ 5 million and $ 9 million during 2020, 2019 and 2018, respectively, in restructuring charges related to employee severance and termination costs at C&W Caribbean and Networks, which impacted our net pension liability.

For additional information, see note 16.

( 13 ) Programming and Other Direct Costs of Services

Programming and other direct costs of services include programming and copyright costs, interconnect and access costs, commissions, costs of mobile handsets and other devices, and other direct costs related to our operations.

Our programming and other direct costs of services by major category are set forth below.

Year ended December 31,

2020 2019 2018

Programming and copyright $ 389.3 $ 404.8 $ 401.1

Interconnect and commissions 249.9 280.0 298.7

Equipment and other

206.8 193.0 177.4

Total programming and other direct costs $ 846.0 $ 877.8 $ 877.2

(14) 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;

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

• Facility, provision, franchise and other , which primarily includes facility-related costs, provision for bad debt expense, franchise-related fees, bank fees, insurance, travel and entertainment and other operating-related costs;

• Share-based compensation costs that relate to (i) SARs, RSUs and PSUs (each as defined in note 3) issued to our employees and Directors (as defined in note 17) and (ii) bonus-related expenses that will be paid in the form of equity (as further described in note 17).

Our other operating costs and expenses by major category are set forth below.

Year ended December 31,

2020 2019 2018

Personnel and contract labor $ 483.6 $ 500.4 $ 475.3

Network-related 261.4 264.4 266.6

Service-related 161.7 149.9 144.5

Commercial 168.1 172.6 166.7

Facility, provision, franchise and other 359.1 360.5 348.4

Share-based compensation expense 97.5 57.5 39.8

Total other operating costs and expenses $ 1,531.4 $ 1,505.3 $ 1,441.3

(15) Income Taxes

On July 11, 2017, Liberty Latin America was formed as a corporation in Bermuda where a Tax Assurance Certificate has been granted to guarantee that any imposition of income or other taxes will not be applicable to Liberty Latin America through March 31, 2035.

Accordingly, Liberty Latin America does not file a primary corporate income tax return in Bermuda, although various subsidiaries in other jurisdictions are taxable operations and file income tax returns in their respective jurisdictions.

The income taxes of Liberty Latin America are presented, prior to the Split-Off , on a separate return basis for each tax-paying entity or group.

The income taxes of Liberty Latin America are presented on a standalone basis, and each tax paying entity or group within Liberty Latin America is presented on a separate return basis, unless a combined or consolidated tax return regime is permitted.

We maintain a tax sharing agreement with Liberty Global (the Tax Sharing Agreement ) that became effective upon consummation of the Split-Off.

Pursuant to the Tax Sharing Agreement, tax liabilities and benefits relating to taxable periods before and after the Split-Off will be computed and apportioned between Liberty Latin America and Liberty Global, and responsibility for payment of those tax liabilities (including any taxes attributable to the Split-Off and related internal restructurings) and use of those tax benefits, will be allocated between Liberty Latin America and Liberty Global.

The components of our loss before income taxes are as follows:

Year ended December 31,

2020 2019 2018

Domestic (a) $ ( 67.3 ) $ ( 46.0 ) $ ( 32.5 )

Foreign (b) (c) ( 770.9 ) ( 234.6 ) ( 552.2 )

Liberty Latin America is considered a stand-alone Bermuda entity.

Total $ ( 838.2 ) $ ( 280.6 ) $ ( 584.7 )

(a) Liberty Latin America is considered a stand-alone Bermuda entity.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

(b) Amounts for the year ended December 31, 2020, include impairment charges of $ 177 million and $ 99 million at our C&W Panama and C&W Caribbean and Networks reporting units, respectively.

Amounts for the years ended December 31, 2019 and 2018 include impairment charges at our Panamanian reporting unit of $ 182 million and $ 608 million, respectively.

The amount for the year ended December 31, 2017 includes impairment charges of $ 211 million , $ 191 million , $ 113 million and $ 97 million at our Puerto Rico, Trinidad and Tobago, British Virgin Islands and Bahamas reporting units, respectively.

For additional information regarding asset impairments, see note 9.

(c) For the year ended December 31, 2020, material jurisdictions that comprise the “foreign” component of our loss before income taxes include Bahamas, Barbados, Chile, Costa Rica, Jamaica, the Netherlands, Panama, Puerto Rico, Trinidad, the U.K.

For the year ended December 31, 2019, material jurisdictions that comprise the “foreign” component of our loss before income taxes include Bahamas, Barbados, Chile, Costa Rica, Jamaica, the Netherlands, Panama, Puerto Rico, Trinidad, the U.K.

For the year ended December 31, 2018, material jurisdictions that comprise the “foreign” component of our loss before income taxes include Barbados, Chile, the Netherlands, Panama, Puerto Rico and the U.K.

For the year ended December 31, 2017 , material jurisdictions that comprise the “foreign” component of our loss before income taxes include Bahamas, Barbados, Chile, Jamaica, the Netherlands, Panama, Puerto Rico, the U.K.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Income tax benefit (expense) consists of:

Current Deferred Total

Year ended December 31, 2020:

Domestic $ — $ — $ —

Foreign ( 35.8 ) 65.1 29.3

Total $ ( 35.8 ) $ 65.1 $ 29.3

Year ended December 31, 2019:

Domestic $ — $ — $ —

Foreign 65.5 32.7 98.2

Total $ 65.5 $ 32.7 $ 98.2

Year ended December 31, 2018:

Domestic $ — $ — $ —

Foreign ( 84.0 ) 32.9 ( 51.1 )

Total $ ( 84.0 ) $ 32.9 $ ( 51.1 )

Income tax benefit (expense) attributable to our earnings (loss) before income taxes differs from the amounts computed by using the applicable tax rate as a result of the following:

Year ended December 31,

2020 2019 2018

Computed expected tax benefit (a) $ — $ — $ —

4 unchanged sentences

Changes in uncertain tax positions 33.4 161.7 8.9

Enacted tax law and rate changes (d) (e) (f) (g) (h) (i)

Enacted tax law and rate changes (d) (e) (f) (g) 149.4 11.3 1.5

Effect of non-deductible goodwill impairments ( 70.3 ) ( 43.8 ) ( 157.0 )

Withholding Tax ( 40.0 ) ( 15.8 ) ( 13.2 )

Other, net 16.3 ( 16.3 ) 25.1

Total income tax benefit (expense) $ 29.3 $ 98.2 $ ( 51.1 )

On July 11, 2017, Liberty Latin America was formed as a corporation in Bermuda where the company is exempt from income taxes on ordinary income and capital gains, and therefore has a “statutory” or “expected” tax rate of 0% in 2019, 2018 and 2017.

The majority of our subsidiaries operate in jurisdictions where income tax is imposed at local applicable rates, resulting in “international rate differences,” as shown in the table above that reflect the computed tax benefit (expense) of pre-tax book income (loss) in the respective taxable jurisdiction.

Permanent differences primarily relate to various non-taxable income or non-deductible expenses, such as Caricom treaty income, limitations on deductible management fees, or executive compensation, among others.

The 2019 corporate tax rates applicable to our primary tax jurisdictions are as follows:

Puerto Rico, 37.5%;

the U.K., 19%;

the Netherlands, 25%;

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

During 2018, legislation was enacted that changed the income tax rate in Barbados from 25.0% to 30.0% on Regular Barbados Companies.

(a) On July 11, 2017, Liberty Latin America was formed as a corporation in Bermuda where the company is exempt from income taxes on ordinary income and capital gains, and therefore has a “statutory” or “expected” tax rate of 0% in 2020, 2019, and 2018.

(b) Permanent differences primarily relate to various non-taxable income or non-deductible expenses, such as CARICOM treaty income, limitations on deductible management fees, or executive compensation, among others.

Costa Rica, 30%;

Jamaica, 33.33%;

the Netherlands, 25%;

Puerto Rico, 37.5%;

the U.K., 19%;

and the U.S., 21%.

(d) In March 2020, the United Kingdom enacted budget confirmed that its corporate tax rate would maintain at 19% as opposed to a previously announced reduction to 17% which was to be effective from April 1, 2020.

While deferred tax assets were re-valued, there is a net nil tax impact of this on total tax result due to a full valuation allowance on all deferred tax items in the U.K.

(e) During 2018, legislation was enacted that changed the income tax rate in Barbados from 25.0% to 30.0% on Regular Barbados Companies.

Substantially all of the impact of this rate change on our deferred tax balances was recorded during the fourth quarter of 2018 when the change in law was enacted.

1 unchanged sentence

Substantially all of the impact of this rate change on our deferred tax balances was recorded during the first quarter of 2019 when the change in law was enacted.

On December 27, 2019, legislation was enacted in Colombia that replaces tax reform which had previously been enacted in 2018 but had been declared unconstitutional due to procedural flaws.

(f) On December 27, 2019, legislation was enacted in Colombia that replaces tax reform which had previously been enacted in 2018 but had been declared unconstitutional due to procedural flaws.

The legislation confirms provisions from the original 2018 reform, including a phasing down of the corporate tax rates through 2022, whereby the rate will be 30% going forward.

Substantially all of the impact of this rate change on our deferred tax balances was recorded during the fourth quarter of 2019 when the change in law was enacted.

On December 10, 2018, legislation was enacted that changed the total corporate income tax rate in Puerto Rico from 39.0% to 37.5% for tax years beginning after December 31, 2018.

(g) On December 10, 2018, legislation was enacted that changed the total corporate income tax rate in Puerto Rico from 39.0% to 37.5% for tax years beginning after December 31, 2018.

Substantially all of the impact of this rate change on our deferred balances was recorded during the fourth quarter of 2018 when the change in law was enacted.

On January 1, 2017, legislation was enacted that changed the income tax rate in Trinidad and Tobago from 25.0% to 30.0%.

Substantially all of the impact of this rate change on our deferred tax balances was recorded during the first quarter of 2017 when the change in tax law was enacted.

On December 22, 2017, the Tax Cuts and Jobs Act legislation was enacted in the U.S.

, which permanently reduced the corporate income tax rate to 21.0% (effective January 1, 2018), among other corporate income tax changes.

Substantially all of the impact of this rate change on our U.S.

deferred tax balances was recorded during the fourth quarter of 2017 when the change in tax law was enacted.

The corporate tax rate applicable to our Chilean operations increased to 25.5% in 2017.

In 2018 and future years, the tax rate is 27.0%.

As of 2017, the 35.0% withholding tax applicable to payments made by our Chilean operations to non-resident shareholders will be based only on actual distributions to shareholders and only 65.0% of the actual corporate tax paid by our Chilean operations will be available to be used as a credit against this withholding tax.

In the case of shareholders residing in countries that have tax treaties in force with Chile, there will be a full credit for the corporate tax paid.

Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes.

9 unchanged sentences

Net operating losses, credits and other carryforwards $ 2,085.8 $ 1,520.2

Deferred revenue 16.8 —

Unrealized gains and losses 24.8 64.9

5 unchanged sentences

Deferred tax liabilities:

Investments ( 205.7 ) ( 224.1 )

Intangible assets ( 618.0 ) ( 168.6 )

6 unchanged sentences

Year ended December 31,

2020 2019 2018

Balance at beginning of period $ 1,402.8 $ 1,308.9 $ 1,282.2

7 unchanged sentences

Deferred tax assets related to net operating losses may be used to offset future taxable income.

The significant components of our tax loss carryforwards and related tax assets at December 31, 2019 are as follows:

Amount attributable to capital losses

Amount attributable to net operating losses

The significant components of our tax loss carryforwards at December 31, 2020 are as follows:

Country Tax loss

carryforward Related

tax asset Expiration

Amount attributable to capital losses $ 5,031.5 $ 956.0 Indefinite

Amount attributable to net operating losses 1,414.1 267.7 Indefinite

Barbados 1,086.2 29.1 2021 - 2027

Jamaica 443.0 146.9 Indefinite

Curacao 213.0 48.5 2021 - 2030

Chile 146.4 39.5 Indefinite

Puerto Rico 135.8 50.9 2024 - 2037

135.6 34.0 2029 - 2037

Netherlands 110.8 27.7 2024 - 2026

Other 105.4 28.4 Various

Total $ 8,821.8 $ 1,628.7

As of December 31, 2020, a valuation allowance of $ 1,489 million has been recorded on the net operating loss carryforwards where we do not expect to generate future taxable income, or where certain losses may be limited in use due to change in control or same-business tests.

2 unchanged sentences

Further, tax jurisdictions restrict the type of taxable income that the above losses are able to offset.

In 2019 and 2018, we have foreign tax credit carryforwards each of $ 25 million , which are available in the U.S., but are subject to a full valuation allowance.

In 2020 and 2019, we have foreign tax credit carryforwards of $ 24 million and $ 25 million, respectively, which are available in the U.S.

Substantially all credits not utilized will expire at the end of 2027.

11 unchanged sentences

In general, tax returns filed by, or that include, entities comprising Liberty Latin America for years prior to 2009 are no longer subject to examination by tax authorities.

We are currently undergoing income tax audits in Chile, Panama, Trinidad and Tobago and certain other jurisdictions within the Caribbean and Latin America.

Except as noted below, any adjustments that might arise

We are currently undergoing income tax audits in Chile, Panama, Trinidad and

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

from the foregoing examinations are not expected to have a material impact on our consolidated financial position or results of operations.

Tobago and certain other jurisdictions within the Caribbean and Latin America.

Except as noted below, any adjustments that might arise from the foregoing examinations are not expected to have a material impact on our consolidated financial position or results of operations.

The changes in our unrecognized tax benefits are summarized below:

Year ended December 31,

2020 2019 2018

Balance at January 1 $ 64.1 $ 249.0 $ 264.5

12 unchanged sentences

No assurance can be given as to the nature or impact of any changes in our unrecognized tax positions during 2021.

During 2019 , 2018 and 2017 , our income tax benefit (expense) includes interest release of $ 33 million and (expense) of ( $ 8 million ), and ( $ 22 million ), respectively, representing the net accrual of interest and penalties incurred during the period.

During 2020, 2019 and 2018, our income tax benefit (expense) includes interest releases of $ 2 million and $ 33 million and interest expense of $ 8 million, respectively, representing the net accrual of interest and penalties incurred during the respective period.

Our other long-term liabilities include accrued interest and penalties of $ 13 million and $ 15 million at December 31, 2020 and 2019, respectively.

Share Capital

In connection with the Split-Off , we issued 48,428,841 , 1,940,193 and 120,843,539 shares of Class A, Class B and Class C common stock, respectively.

As a result, the accumulated net contributions balance as of December 29, 2017 was reclassified to additional paid-in capital and reflected as a change in capitalization in connection with the Split-Off in our consolidated statement of equity.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

A summary of the changes in our share capital during 2019 and 2018 is set forth in the table below:

Balance at January 1, 2018

LPR NCI Acquisition

Issued in connection with share-based compensation plans

Issued in connection with 401(k) company match

Conversion of Class B to Class A

Balance at December 31, 2018

Balance at January 1, 2019

Issued in connection with share-based compensation plans

Issued in connection with 401(k) company match

Conversion of Class B to Class A

Balance at December 31, 2019

Voting rights.

Holders of Class A common shares and Class B common shares vote together as a single class on all matters submitted to a vote of Liberty Latin America ’s shareholders.

The holders of Class A common shares have one vote per share;

the holders of Class B common shares have 10 votes per share;

and the holders of Class C common shares generally have no votes per share.

In the event a right to vote is required under applicable law, holders of Class C common shares will vote as a single class with the holders of Class A common shares and Class B common shares and will be entitled to 1/100 of a vote on such matter for each Class C common share.

Each Class B common share is convertible at the option of the holder for one Class A common share.

In connection with the issuance of our Convertible Notes , we entered into capped call option contracts (the Capped Calls ).

The Capped Calls are used as an economic hedge to reduce or offset potential dilution to our Class C common shares upon any conversion of the Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of such converted notes, as the case may be, with such reduction and/or offset subject to a cap.

Collectively, the Capped Calls cover, initially, the number of the Company’s Class C common shares underlying the Convertible Notes , or 18.1 million of Class C common shares.

The Capped Calls have an initial strike price of $ 22.2337 per Class C common share and an initial cap price of $ 31.7625 per Class C common share, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Convertible Notes , and expire on July 15, 2024 .

The Capped Calls are not considered a derivative instrument under ASC 815, Derivatives and Hedging , as the contracts are indexed to our Class C common shares and therefore classified within shareholders’ equity.

The aggregate premiums paid for the Capped Calls of $ 46 million are included in additional paid-in capital in our consolidated statement of equity.

Conversion Option – Convertible Notes

In connection with the issuance of the Convertible Notes , we recorded $ 77 million in additional paid-in capital in our consolidated statement of equity for the Conversion Option , which represents the fair value of the Conversion Option at issuance less $ 1 million of allocated transaction fees and costs.

For additional information, see notes 6 and 10 .

Noncontrolling interests

During the third quarter of 2019, we increased our ownership interest in UTS from 87.5 % to 100.0 % for $ 12 million (the UTS NCI Acquisition ), of which $ 5 million was paid during the quarter and the remaining $ 7 million is included in other accrued and current liabilities in our consolidated balance sheet at December 31, 2019 .

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

During 2018 , we increased our ownership in C&W Jamaica from 82.0 % to 92.3 % by acquiring 1,727,047,174 of the issued and outstanding ordinary stock units of C&W Jamaica that we did not already own (the C&W Jamaica NCI Acquisition ) for JMD 1.45 per share or JMD 2,504 million ( $ 20 million at the transaction dates) of paid consideration.

On October 17, 2018 , we acquired the remaining 40.0 % partnership interests in LCPR from Searchlight Capital Partners, L.P.

( Searchlight ) in exchange for 9,500,000 unregistered Liberty Latin America Class C common shares (the LPR NCI Acquisition ).

In connection with the LPR NCI Acquisition (i) we entered into a registration rights agreement with Searchlight related to the Class C common shares and (ii) Searchlight is subject to certain restrictions regarding the transfer of the shares issued in the transaction for a period of up to two years.

Effective September 1, 2017, we increased our ownership in C&W Barbados from 81.1 % to 100 % by acquiring all of the issued and outstanding common shares of C&W Barbados that we did not already own for Barbadian dollars ( Bds ) of Bds 2.86 per share (the C&W Barbados NCI Acquisition ).

As of December 31, 2019 , Bds 67 million ( $ 34 million ) of the consideration was paid, including Bds 2 million ( $ 1 million ) in transaction fees, and the remaining Bds 12 million ( $ 6 million ) was recorded as a liability in our consolidated balance sheet.

Liberty Puerto Rico Equity Commitment

In December 2017, and in connection with challenging circumstances that Liberty Puerto Rico experienced as a result of the damage caused by the 2017 Hurricanes , the LPR Credit Agreements were amended to provide for, among other things, a commitment from Liberty Puerto Rico ’s shareholders through December 31, 2018 to fund potential liquidity shortfalls.

During 2018 , prior to the LPR NCI Acquisition , capital contributions aggregating $ 45 million were provided to Liberty Puerto Rico consisting of $ 27 million from us and $ 18 million from investment funds affiliated with Searchlight .

The capital contributions from Searchlight are included in our consolidated statement of equity as an increase to noncontrolling interests.

Distributions to Liberty Global

During 2017 (for the period prior to the Split-Off ), we made capital distributions of $ 53 million and $ 21 million , respectively, to reimburse Liberty Global for LiLAC Shares it repurchased pursuant to its then share repurchase program with respect to LiLAC Shares .

Restructuring Liabilities

A summary of changes in our restructuring liabilities during 2019 is set forth in the table below:

Contract termination and other

Restructuring liability as of January 1, 2019

Restructuring charges

UTS liabilities at acquisition date

Foreign currency translation adjustments

Restructuring liability as of December 31, 2019

Current portion

Noncurrent portion

Our restructuring charges during 2019 primarily relate to employee severance and termination costs associated with reorganization programs at C&W and VTR .

In addition to these charges, we also incurred $ 5 million in restructuring charges related to employee severance and termination costs at C&W , which impacted our net pension liability.

For additional information, see note 15 .

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

A summary of changes in our restructuring liabilities during 2018 is set forth in the table below:

Contract termination and other

Restructuring liability as of January 1, 2018

Restructuring charges

Foreign currency translation adjustments

Restructuring liability as of December 31, 2018

Current portion

Noncurrent portion

Our restructuring charges during 2018 primarily relate to (i) employee severance and termination costs, primarily associated with reorganization programs at C&W of $ 15 million and (ii) $ 6 million of contract termination costs at VTR .

In addition to the restructuring charges set forth in the table above, we also incurred $ 9 million in restructuring charges related to employee severance and termination costs at C&W , which impacted our net pension liability.

For additional information, see note 15 .

A summary of changes in our restructuring liabilities during 2017 is set forth in the table below:

Contract termination and other

Restructuring liability as of January 1, 2017

Restructuring charges

Foreign currency translation adjustments

Restructuring liability as of December 31, 2017

Our restructuring charges during 2017 primarily include (i) employee severance and termination costs associated with certain reorganization and integration activities of $ 23 million and $ 10 million at C&W and VTR , respectively, and (ii) contract termination costs of $ 6 million at VTR .

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

(16) Pension Plans

Defined Benefit Plans

C&W maintains various funded defined benefit plans for its employees, including (i) the Cable & Wireless Superannuation Fund ( CWSF ), which is C&W ’s largest defined benefit plan, and (ii) plans in Jamaica, Barbados, the Bahamas and Curacao.

C&W maintains various funded defined benefit plans for its employees, including (i) the Cable & Wireless Superannuation Fund ( CWSF ), which is C&W’s largest defined benefit plan, and (ii) plans in the Bahamas, Jamaica, Barbados and Curacao.

A significant portion of these defined benefit plans are closed to new entrants, and existing participants do not accrue any additional benefits.

C&W also operates unfunded defined benefit arrangements in the U.K.

, which are governed by individual trust deeds (the U.K.

C&W also operates unfunded defined benefit arrangements in the U.K., which are governed by individual trust deeds (the U.K.

unfunded plans ).

5 unchanged sentences

Prior to the UTS Acquisition, UTS had unfunded defined benefit liabilities for certain of its employees.

In connection with the UTS Acquisition , an insurance policy was purchased for 64 million Netherlands Antillean Guilders ( $ 36 million ).

In connection with the UTS Acquisition, an insurance policy was purchased for 64 million Netherlands Antillean Guilders ( ANG ) ($ 36 million).

The payments from this policy effectively match the corresponding obligations to the UTS employees.

Annual service costs for these employee benefit plans is determined using the projected unit credit actuarial method.

Annual service cost for these employee benefit plans is determined using the projected unit credit actuarial method.

The C&W subsidiaries that maintain funded plans have established investment policies for plan assets.

9 unchanged sentences

Consumer price index inflation rate 2.1 % 2.1 %

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

The present value of the CWSF vested benefit obligations has been calculated and, together with the U.K.

4 unchanged sentences

In addition, allowance was made for future mortality improvements in line with the 2019 Continuous Mortality Investigation core projections with a long-term rate of improvement of 1.25 % per annum.

Based on these assumptions, the life expectancies of participants aged 60 are as follows:

Based on these assumptions, the life expectancies of participants aged 60 at the following dates are as follows:

2020 2030 2040

Male participants and dependents 27 28 29

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Female dependents 28 29 30

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Through our defined benefit pension plans, we are exposed to a number of risks, the most significant of which are detailed below.

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The calculation of the net surplus or deficit of the respective plans depends on factors that are beyond our control, principally (i) the value at the balance sheet date of equity securities in which the respective plan has invested and (ii) long-term interest rates, which are used to discount future liabilities.

Generally, the long-term interest rates are based on applicable AA corporate bond yields over the period for which the pension obligations are expected to be settled.

The funding of the respective plans is based on long-term trends and assumptions relating to market growth, as advised by qualified actuaries and investment advisors, including:

4 unchanged sentences

• Inflation rate risk:

, pension obligations are impacted by inflation and, as such, higher inflation will lead to higher pension liabilities.

In the U.K., pension obligations are impacted by inflation and, as such, higher inflation will lead to higher pension liabilities.

At December 31, 2020, the above risks have been mitigated for approximately 66 % of the CWSF’s liabilities, 68 % of the Jamaican plan’s liabilities and 100 % of the UTS liabilities through the purchase of insurance policies, the payments from which match the corresponding obligations to employees.

The remaining investment risks in the plans have also been mitigated to a reasonable extent by a combination of matching assets and diversification of the return-seeking assets.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

Sensitivity analysis

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unfunded plans and (iii) the impact of plan participants living, on average, one year longer or one year less than assumed would have on the valuation of our pension plans.

The sensitivity analysis is based on a standalone change in each assumption while holding all other assumptions constant.

Increase Decrease

CWSF and U.K.

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Life expectancy $ 12 $ ( 12 )

The sensitivity analysis is based on a standalone change in each assumption while holding all other assumptions constant.

As reflected above, the impact on the net pension liability is significantly reduced for the CWSF as a result of the annuity insurance policies we hold.

Using the projected unit credit method for the valuation of liabilities, the current service cost is expected to increase when expressed as a percentage of pensionable payroll as the members of the plans approach retirement.

6 unchanged sentences

UTS acquisition (a) — 36.0

Bahamas plan adjustment (b)

Prior service cost (c)

Service cost 4.3 4.6

Prior service cost 2.8 —

Contributions by plan participants 1.3 1.2

Interest cost

Actuarial (gain) loss

Actuarial loss 163.1 148.3

Benefits paid ( 116.1 ) ( 114.4 )

Other 2.4 3.6

Effect of changes in foreign currency exchange rates

Projected benefit obligation at end of period

$ 2,480.5 $ 2,313.4

Accumulated benefit obligation at end of period $ 2,470.2 $ 2,302.5

1 unchanged sentence

UTS acquisition (a) — 36.0

Bahamas plan adjustment (b)

Actual return on plan assets 214.4 197.0

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Benefits paid ( 116.1 ) ( 114.4 )

Other 0.6 0.6

Effect of changes in foreign currency exchange rates

Fair value of plan assets at end of period

$ 2,418.5 $ 2,263.4

Net pension liability

Amounts represent the initial projected benefit obligation of the UTS unfunded defined benefit plan at the UTS Acquisition date and a corresponding plan asset associated with the expected cash flows from the insurance policy covering the projected benefit obligation.

During 2018, C&W recognized a net pension liability that is largely indemnified by a government entity.

$ ( 62.0 ) $ ( 50.0 )

(a) 2019 amounts represent the initial projected benefit obligation of the UTS unfunded defined benefit plan at the UTS Acquisition date and a corresponding plan asset associated with the expected cash flows from the insurance policy covering the projected benefit obligation.

During 2018, C&W Bahamas recognized a net pension liability that is largely indemnified by the Commonwealth of The Bahamas.

At December 31, 2020 and 2019, the indemnification asset balance was $ 182 million and $ 155 million, respectively, which is included in other assets, net, in our consolidated balance sheets.

The 2018 amount relates to an allowance recorded in connection with expected costs associated with guaranteed minimum pension equalization in the CWSF .

Defined benefit plan amounts included in our consolidated balance sheets are as follows:

Other assets, net $ 210.2 $ 184.9

Other long-term liabilities ( 272.2 ) ( 234.9 )

Net pension liability $ ( 62.0 ) $ ( 50.0 )

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

Defined benefit plan amounts included in our consolidated balance sheets are as follows:

Noncurrent assets

Noncurrent liabilities

Net pension liability

The asset allocation by asset category, asset mix and fair value hierarchy level (as further described in note 6) of our defined benefit plan assets are as follows:

December 31, 2019

mix (a) December 31, 2020

Total Level 1 Level 2 Level 3

% in millions

Equity securities 8.9 $ 212.0 $ 155.0 $ 57.0 $ —

Bonds (b) 32.4 784.1 771.6 12.5 —

Insurance annuity contracts (c) 56.2 1,360.0 — 141.2 1,218.8

Real estate 1.1 27.3 12.1 1.1 14.1

Private equity 0.2 4.9 — — 4.9

December 31, 2018

Cash 1.2 30.2 30.2 — —

Total 100.0 $ 2,418.5 $ 968.9 $ 211.8 $ 1,237.8

mix (a) December 31, 2019

Total Level 1 Level 2 Level 3

% in millions

Equity securities 11.5 $ 259.1 $ 157.0 $ 102.1 $ —

Bonds (b) 28.6 646.9 633.9 13.0 —

Insurance annuity contracts (c) 56.8 1,285.5 — 142.0 1,143.5

Real estate 1.2 28.0 12.5 1.6 13.9

Private equity 0.4 9.9 — — 9.9

We review the asset allocations within the respective portfolios on a regular basis.

Cash 1.5 34.0 34.0 — —

Total 100.0 $ 2,263.4 $ 837.4 $ 258.7 $ 1,167.3

(a) We review the asset allocations within the respective portfolios on a regular basis.

Generally, the plans do not have explicit asset mix targets other than for the equity securities and bond portfolios within the CWSF on a consolidated basis.

The asset mix is primarily subject to, among other considerations, a de-risking plan related to the CWSF.

Amounts primarily include (i) fixed-interest and index-linked U.K.

(b) Amounts primarily include (i) fixed-interest and index-linked U.K.

Government Gilts held by the CWSF and (ii) bonds held by the Bahamas and Jamaica plans.

(c) The trustees of the CWSF, Jamaica plan and UTS unfunded liabilities have each purchased annuity policies pursuant to which the insurer assumed responsibility for the benefits payable to certain participants of the CWSF, Jamaica plan and UTS liabilities.

The liabilities in the CWSF, Jamaica plan and at UTS are matched by related annuity policy assets, which reduces our funding risk for these plans, as follows:

CWSF 66 % 67 %

Jamaica plan 68 % 66 %

UTS 100 % 100 %

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

The trustees of the CWSF , Jamaica plan and UTS unfunded liabilities have each purchased annuity policies pursuant to which the insurer assumed responsibility for the benefits payable to certain participants of the CWSF , Jamaica plan and UTS liabilities.

The liabilities in the CWSF , Jamaica plan and at UTS are matched by related annuity policy assets, which reduces our funding risk for these plans, as follows:

A reconciliation of the beginning and ending balances of our plan assets measured at fair value using Level 3 inputs is as follows:

4 unchanged sentences

Balance at end of year $ 1,237.8 $ 1,167.3

The components of net periodic pension benefit (expense) recorded in our consolidated statements of operations are as follows:

The components of net periodic pension expense (benefit) recorded in our consolidated statements of operations are as follows:

Year ended December 31,

2020 2019 2018

Included in operating income – service costs $ 2.9 $ 3.4 $ 3.7

2 unchanged sentences

Expected return on plan assets ( 49.5 ) ( 59.6 ) ( 74.8 )

Total net periodic pension benefit (expense)

In addition to the net periodic pension expense in 2019, we incurred $ 5 million in restructuring charges related to employee severance and termination costs at C&W , which impacted our net pension liability.

Other 1.1 — ( 1.9 )

( 0.1 ) ( 2.0 ) ( 12.2 )

Total net periodic pension expense (benefit) $ 2.8 $ 1.4 $ ( 8.5 )

In addition to the net periodic pension expense in 2020, 2019 and 2018, we incurred (i) administrative expenses of $ 2 million each year associated with certain of our defined benefit plans and (ii) $ 3 million, $ 5 million and $ 9 million, respectively, in restructuring charges related to employee severance and termination costs at C&W, which impacted our net pension liability.

For information on our restructuring charges, see note 12.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

The net actuarial gain (loss) recognized in accumulated other comprehensive earnings (loss) during each period and not yet recognized as a component of net period benefit cost at each period end is as follows:

The net actuarial gain (loss) recognized in accumulated other comprehensive loss during each period and not yet recognized as a component of net period benefit cost at each period end is as follows:

Year ended December 31,

2020 2019 2018

Balance at beginning of year $ 8.6 $ 10.7 $ ( 19.8 )

1 unchanged sentence

Actuarial gain (loss) on plan assets (a) 158.7 131.9 ( 51.1 )

Foreign currency translation adjustments and other

Prior service costs and other 1.0 0.5 ( 0.3 )

Balance at end of year $ 20.0 $ 8.6 $ 10.7

Represents the actual less expected return on plan assets.

Based on December 31, 2019 exchange rates, the benefits that we currently expect to pay during the next five years and in the aggregate for the five years thereafter with respect to our defined benefit plans are as follows (in millions):

Year ending December 31:

2020 Expected Contributions

Based on December 31, 2019 foreign exchange rates and information available as of that date, we expect contributions of $ 8 million in aggregate to our defined benefit plans in 2020 .

(a) Represents the actual less expected return on plan assets.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

Based on December 31, 2020 exchange rates, the benefits that we currently expect to pay during the next five years and in the aggregate for the five years thereafter with respect to our defined benefit plans are as follows (in millions):

Year ending December 31:

2026 – 2030 701.8

2021 Expected Contributions

Based on December 31, 2020 foreign exchange rates, we expect to make contributions of $ 9 million in aggregate to our defined benefit plans in 2021.

Defined Contribution Plans

We have established various defined contribution benefit plans for our employees.

Our aggregate expense for matching contributions under the various defined contribution employee benefit plans was $ 14 million, $ 13 million and $ 10 million during 2020, 2019 and 2018, respectively.

(17) Share-based Compensation

Our share-based compensation expense includes (i) amounts related to share-based incentive awards held by our employees and employees of our subsidiaries, (ii) amounts allocated from Liberty Global to Liberty Latin America prior to the Split-Off related to share-based incentive awards held by our employees, as further discussed below, and (iii) amounts related to share-based incentive awards issued under plans that have expired at VTR and LCPR .

Amounts allocated from Liberty Global to Liberty Latin America relate to share-based incentive awards held by our employees prior to the Split-Off associated with both LiLAC Shares and Liberty Global Shares, and are reflected as an increase (decrease) to accumulated net contributions (distributions) in our consolidated statements of equity.

As discussed below, in conjunction with the Split-Off , LiLAC Shares previously issued to our employees were replaced with Liberty Latin America share-based incentive awards.

Following the Split-Off , Liberty Global no longer allocates share-based compensation expense to our company.

The following table summarizes our share-based compensation expense:

Year ended December 31,

Other operating expense

As of December 31, 2019 , we have $ 67 million of total unrecognized compensation expense related to awards held by our employees that is expected to be recognized as a future expense over a weighted-average period of approximately 2.2 years .

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Our share-based compensation expense includes amounts related to share-based incentive awards held by our employees and employees of our subsidiaries.

The following table summarizes certain information related to the share-based incentive awards granted and exercised:

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Assumptions used to estimate fair value of SARs granted:

2020 2019 2018

Risk-free interest rate 0.18 - 0.88 %

Expected life

1.69 - 2.41 %

2.24 - 3.05 %

Expected life 4.5 - 7.0 years

4.6 - 7.0 years

1 unchanged sentence

Expected volatility 48.1 - 90.6 %

Expected dividend yield

33.1 - 36.4 %

29.8 - 38.2 %

Expected dividend yield none none none

Weighted average grant-date fair value per share of awards granted:

Total intrinsic value of SARs exercised (in millions)

SARs $ 5.39 $ 6.86 $ 7.05

RSUs $ 10.07 $ 19.75 $ 18.41

PSUs $ — $ 16.95 $ 19.49

Income tax benefit related to share-based compensation (in millions) $ 4.9 $ 3.8 $ 6.2

As of December 31, 2020, we have $ 58 million of total unrecognized compensation expense related to awards held by our employees that is expected to be recognized as a future expense over a weighted-average period of approximately 2.0 years.

Equity Incentive Plans

In connection with the Split-Off , we adopted the Liberty Latin America Ltd.

In 2017, we adopted the Liberty Latin America Ltd.

2018 Incentive Plan (the Employee Incentive Plan ) and the Liberty Latin America Ltd.

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Options, SARs, RSUs, cash awards, performance awards or any combination of the foregoing may be granted under the Employee Incentive Plan and the Nonemployee Director Incentive Plan.

The maximum number of Liberty Latin America common shares that may be issued under the Employee Incentive Plan and the Nonemployee Director Incentive Plan is 25 million (of which no more than 10 million shares may consist of Class B shares) and 5 million , respectively, in each case subject to anti-dilution and other adjustment provisions in the respective plans.

The maximum number of Liberty Latin America common shares that may be issued under the Employee Incentive Plan and the Nonemployee Director Incentive Plan is 25 million (of which no more

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

than 10 million shares may consist of Class B shares) and 5 million, respectively, in each case subject to anti-dilution and other adjustment provisions in the respective plans.

Liberty Latin America common shares issuable pursuant to awards will be made available from either authorized but unissued shares or shares that have been issued but reacquired by Liberty Latin America.

RSUs and SARs under the Employee Incentive Plan generally vest 12.5 % on the seventh-month anniversary of the grant date and then vest at a rate of 6.25 % each quarter thereafter over a four year term.

SARs expire seven years after the grant date and may be granted with an exercise price at or above the fair market value of the shares on the date of grant in any class of common shares.

Prior to 2020, RSUs and SARs granted under the Employee Incentive Plan generally vested 12.5 % on the seven-month anniversary of the grant date and then vested at a rate of 6.25 % each quarter thereafter over a four year term.

Awards granted in 2020 vest 33.3 % on the anniversary of the grant date over a three year vesting term.

All SARs granted under the Employee Incentive Plan expire seven years after the grant date and may be granted with an exercise price at or above the fair market value of the shares on the date of grant in any class of common shares.

RSUs issued under the Nonemployee Director Incentive Plan vest on the first anniversary of the grant date.

1 unchanged sentence

Transitional Share Conversion Plan

In connection with the Split-Off , share-based incentive awards with respect to LiLAC Shares outstanding as of December 29, 2017 (the Original Awards ) were cancelled and replaced with corresponding share-based incentive awards with respect to Liberty Latin America Shares, pursuant to the Liberty Latin America Ltd.

Prior to the Split-Off, share-based incentive awards were granted in respect to Liberty Global's “LiLAC Shares.” Liberty Global's LiLAC Shares were tracking shares, which were intended to reflect or "track" the economic performance of Liberty Global's "LiLAC Group" rather than the economic performance of Liberty Global as a whole.

The LiLAC Group comprised the same entities as Liberty Latin America at the time of the aforementioned Split-Off.

In connection with the Split-Off on December 29, 2017, share-based incentive awards in respect to LiLAC Shares were cancelled and replaced with corresponding share-based incentive awards in respect to shares of Liberty Latin America pursuant to the Liberty Latin America Ltd.

Transitional Share Conversion Plan (the Transition Plan ).

Specifically, each option, SAR, RSU and PSU outstanding as of the Split-Off Distribution Date was cancelled and replaced with the same number of corresponding Liberty Latin America awards (the Replacement Awards ).

We did not recognize any incremental share-based compensation expense associated with these modifications, as we determined that the incremental value was immaterial.

Specifically, each option, SAR, RSU and PSU outstanding as of December 29, 2017 was cancelled and replaced with the same number of corresponding Liberty Latin America awards.

The PSUs granted in connection with the Transition Plan covered a three-year performance period ending December 31, 2018 and included a performance target metric based on the achievement of specified compound annual growth rates ( CAGR ) in a consolidated Adjusted OIBDA metric.

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Each currently-outstanding PSU represents the right to receive one Liberty Latin America Class A or Class C common share, as applicable, subject to performance and vesting.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

PSUs are granted to executive officers and key employees annually pursuant to performance plans that are based on the achievement of specified CAGR s of our Adjusted OIBDA (as defined in note 19 ) during a 2 -year period ( Adjusted OIBDA CAGR ).

PSUs are granted to executive officers and key employees, generally annually, pursuant to performance plans that are based on the achievement of specified CAGRs of our Adjusted OIBDA (as defined in note 21) during a 2 -year period ( Adjusted OIBDA CAGR ).

The performance targets will be adjusted for events such as acquisitions, dispositions and changes in foreign currency exchange rates that affect comparability.

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The earned PSUs generally vest 50 % on each of April 1, and October 1, of the year following the end of the performance period.

Liability-Based Awards

Our share-based compensation expense during 2020 includes estimated bonus-related expenses for the 2020 year that will be paid in the form of equity.

Accordingly, such expenses have been included in share-based compensation expense effective January 1, 2020 and are being accounted for using the liability-based method.

Prior to the Split-Off, certain of our employees received share-based incentive awards in shares of Liberty Global that had a legal life of seven years .

During 2020, the expiration period for certain of these awards related to Liberty Global shares held by our employees was extended from 7 years to 10 years, which resulted in incremental expense of $ 7 million.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

Share-based Incentive Awards

The following tables summarize the share-based incentive award activity during 2019 with respect to Liberty Latin America awards held by our employees and our board of directors.

Aggregate intrinsic value

The following tables summarize the share-based incentive award activity during 2020 with respect to Liberty Latin America awards held by our employees and our board of directors ( Directors ).

shares Weighted

base price Weighted

term Aggregate intrinsic value

SARs – Class A shares

in years in millions

Outstanding at January 1, 2020

3,427,663 $ 21.80

2,110,072 $ 10.42

( 280,226 ) $ 22.38

( 1,443 ) $ 18.63

Outstanding at December 31, 2020

5,256,066 $ 17.20 5.0 $ 1.5

Exercisable at December 31, 2020

Aggregate intrinsic value

1,986,355 $ 22.68 3.9 $ —

shares Weighted

base price Weighted

term Aggregate intrinsic value

SARs – Class C shares

in years in millions

Outstanding at January 1, 2020

6,904,412 $ 21.87

4,244,786 $ 10.47

( 638,593 ) $ 22.76

( 873 ) $ 18.24

Outstanding at December 31, 2020

10,509,732 $ 17.22 5.0 $ 2.5

Exercisable at December 31, 2020

grant-date fair value per share

3,970,651 $ 22.70 3.9 $ —

shares Weighted

grant-date fair value per share Weighted

RSUs – Class A shares

Outstanding at January 1, 2020

245,826 $ 20.23

666,067 $ 10.42

( 27,241 ) $ 15.75

Released from restrictions

( 429,400 ) $ 13.14

Outstanding at December 31, 2020

455,252 $ 12.83 1.8

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

grant-date fair value per share

shares Weighted

grant-date fair value per share Weighted

RSUs – Class C shares

Outstanding at January 1, 2020

491,325 $ 20.25

1,825,771 $ 10.00

( 51,914 ) $ 15.99

Released from restrictions

( 1,354,931 ) $ 11.56

Outstanding at December 31, 2020

grant-date fair value per share

910,251 $ 12.87 1.8

shares Weighted

grant-date fair value per share Weighted

PSUs – Class A shares

Outstanding at January 1, 2020

678,848 $ 18.08

( 22,941 ) $ 17.00

Released from restrictions

( 311,479 ) $ 19.39

Outstanding at December 31, 2020

grant-date fair value per share

344,428 $ 16.97 0.8

shares Weighted

grant-date fair value per share Weighted

PSUs – Class C shares

Outstanding at January 1, 2020

1,357,696 $ 18.19

Granted (a) 30,365 $ —

( 56,509 ) $ 19.09

Released from restrictions

( 612,715 ) $ 19.53

Outstanding at December 31, 2020

718,837 $ 16.21 0.8

(a) Due to the dilutive impact of the Rights Offering (as defined and further described in note 19), holders of outstanding Class C PSU awards received additional awards following completion of the Rights Offering.

As the number of additional awards issued reflects the dilution impact of the Rights Offering, there is a zero grant-date fair value for these issued awards.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

The following tables summarize the share-based incentive awards related to Liberty Global Shares held by employees of Liberty Latin America as of December 31, 2019 :

Share-based incentive award type

Liberty Global Class A ordinary shares:

Liberty Global Class C ordinary shares:

grant-date fair value per share

Share-based incentive award type

RSUs outstanding:

Liberty Global Class A ordinary shares

Liberty Global Class C ordinary shares

(18) Accumulated Other Comprehensive Loss

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Liberty Latin America shareholders

related adjustments and other

adjustments Pension-

related adjustments and other Accumulated

comprehensive

Non-controlling

loss Non-controlling

interests Total

comprehensive loss

Balance at January 1, 2018 $ ( 42.4 ) $ ( 21.8 ) $ ( 64.2 ) $ — $ ( 64.2 )

Other comprehensive loss

Balance at December 31, 2017

Other comprehensive earnings 5.6 35.1 40.7 ( 1.3 ) 39.4

1 unchanged sentence

Balance at December 31, 2018 ( 29.8 ) 13.5 ( 16.3 ) ( 8.5 ) ( 24.8 )

Other comprehensive earnings 4.3 ( 2.8 ) 1.5 ( 0.3 ) 1.2

Balance at December 31, 2019 ( 25.5 ) 10.7 ( 14.8 ) ( 8.8 ) ( 23.6 )

Other comprehensive loss

( 117.7 ) 6.9 ( 110.8 ) ( 0.8 ) ( 111.6 )

Balance at December 31, 2020 $ ( 143.2 ) $ 17.6 $ ( 125.6 ) $ ( 9.6 ) $ ( 135.2 )

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The following table summarizes the tax effects related to each component of other comprehensive earnings (loss), net of amounts reclassified to our consolidated statements of operations:

Tax benefit (expense)

amount Tax benefit (expense) Net-of-tax

Year ended December 31, 2020:

1 unchanged sentence

Pension-related adjustments and other 4.9 2.0 6.9

Other comprehensive earnings

Other comprehensive loss ( 113.6 ) 2.0 ( 111.6 )

Other comprehensive loss attributable to noncontrolling interests (a) 0.8 — 0.8

Other comprehensive earnings attributable to Liberty Latin America shareholders

Other comprehensive loss attributable to Liberty Latin America shareholders $ ( 112.8 ) $ 2.0 $ ( 110.8 )

Year ended December 31, 2019:

4 unchanged sentences

Other comprehensive earnings attributable to Liberty Latin America shareholders

$ 0.6 $ 0.9 $ 1.5

Year ended December 31, 2018:

1 unchanged sentence

Pension-related adjustments and other 37.9 ( 1.2 ) 36.7

Other comprehensive loss

Other comprehensive earnings attributable to noncontrolling interests (a)

Other comprehensive loss attributable to Liberty Latin America shareholders

Amounts represent the noncontrolling interest owners’ share of our foreign currency translation adjustments and pension-related adjustments.

Other comprehensive earnings 40.6 ( 1.2 ) 39.4

Other comprehensive loss attributable to noncontrolling interests (a) 1.3 — 1.3

Other comprehensive earnings attributable to Liberty Latin America shareholders $ 41.9 $ ( 1.2 ) $ 40.7

(a) Amounts represent the noncontrolling interest owners’ share of our foreign currency translation adjustments and pension-related adjustments.

Liberty Latin America Ltd.

1 unchanged sentence

December 31, 2020, 2019 and 2018

Share Capital

A summary of the changes in our share capital during 2020, 2019 and 2018 is set forth in the table below:

Class A Class B Class C

Balance at January 1, 2018 48,428,841 1,940,193 120,843,539

LPR NCI Acquisition — — 9,500,000

Issued in connection with share-based compensation plans 68,718 — 153,629

Issued in connection with 401(k) company match — — 28,990

Conversion of Class B to Class A 4,244 ( 4,244 ) —

Balance at December 31, 2018 48,501,803 1,935,949 130,526,158

Balance at January 1, 2019 48,501,803 1,935,949 130,526,158

Issued in connection with share-based compensation plans 292,486 — 596,153

Issued in connection with 401(k) company match — — 59,060

Conversion of Class B to Class A 1,263 ( 1,263 ) —

Balance at December 31, 2019 48,795,552 1,934,686 131,181,371

Balance at January 1, 2020 48,795,552 1,934,686 131,181,371

Issued in connection with the Rights Offering

— — 49,049,074

Repurchase of Liberty Latin America common shares ( 293,816 ) — ( 673,158 )

Issued in connection with share-based compensation plans 505,549 — 1,460,334

Issued in connection with 401(k) company match — — 96,145

Conversion of Class B to Class A 2,300 ( 2,300 ) —

Balance at December 31, 2020 49,009,585 1,932,386 181,113,766

Voting rights.

Holders of Class A common shares and Class B common shares vote together as a single class on all matters submitted to a vote of Liberty Latin America’s shareholders.

The holders of Class A common shares have one vote per share;

the holders of Class B common shares have 10 votes per share;

and the holders of Class C common shares generally have no votes per share.

Each Class B common share is convertible at the option of the holder for one Class A common share.

Share Repurchase Program

On March 16, 2020, our Directors approved a share repurchase program (the Share Repurchase Program ), which authorizes us to repurchase from time to time up to $ 100 million of our Class A common shares and/or Class C common shares through March 2022, subject to certain limitations and conditions.

The Share Repurchase Program does not obligate us to repurchase any of our Class A or C common shares.

Under the Share Repurchase Program, we may repurchase our common shares from time to time in open market purchases at prevailing market prices, in privately negotiated transactions, in block trades, derivative transactions and/or through other legally permissible means.

At December 31, 2020, the remaining amount authorized for share repurchases was $ 91 million.

Rights Offering

On August 5, 2020, our Directors authorized the distribution (the Rights Distribution ) of pro rata subscription rights to holders of our Class A, Class B and Class C common shares (the " Class C Rights ") to acquire Class C common shares

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

(" LILAK " or “ Class C ”), in a rights offering (the " Rights Offering ").

In the Rights Distribution, we distributed 0.269 of a Class C Right for each share of Class A, Class B or Class C common shares held as of September 8, 2020, which was the record date for the Rights Distribution.

Fractional Class C Rights were rounded up to the nearest whole right.

Each whole Class C Right entitled the holder to purchase, pursuant to the basic subscription privilege, one share of LILAK at a subscription price of $ 7.14 , which was equal to an approximate 25 % discount to the volume weighted average trading price of LILAK for the 3 -day trading period ending on and including September 2, 2020.

Each Class C Right also entitled the holder to subscribe for additional shares of LILAK that were unsubscribed for in the Rights Offering pursuant to an over-subscription privilege.

The Rights Offering commenced on September 11, 2020, which was also the ex-dividend date for the Rights Distribution.

The Rights Offering expired in accordance with its terms on September 25, 2020 and was fully subscribed with 49,049,073 shares of LILAK issued to those rights holders exercising basic and, if applicable, over-subscription privileges.

The proceeds from the Rights Offering, which aggregated $ 350 million before expenses, are expected to be used to finance acquisitions, including our recently announced Telefónica-Costa Rica Acquisition, and for other general corporate purposes.

In connection with the issuance of our Convertible Notes, Liberty Latin America entered into capped call option contracts (the Capped Calls ).

Collectively, the Capped Calls cover the number of the Company’s Class C common shares underlying the Convertible Notes, or 19.5 million of Class C common shares, as adjusted for the impact of the Rights Offering as described below.

The Capped Calls had an initial strike price of $ 22.2337 per Class C common share and an initial cap price of $ 31.7625 per Class C common share, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Convertible Notes, and expire on July 15, 2024.

Following the completion of the Rights Offering, the strike price of the Capped Calls is $ 20.65 per Class C common share and the cap price per Class C common share ranges from $ 28.00 to $ 29.50 .

The aggregate premiums paid for the Capped Calls of $ 46 million are included in additional paid-in capital in our consolidated statement of equity for the three and nine months ended September 30, 2019.

Conversion Option – Convertible Notes

In connection with the issuance of the Convertible Notes, we recorded $ 77 million in additional paid-in capital in our consolidated statement of equity for the Conversion Option, which represents the fair value of the Conversion Option at issuance less $ 1 million of allocated transaction fees and costs.

For additional information, see notes 6 and 10.

Noncontrolling interests

During 2019, we increased our ownership interest in UTS from 87.5 % to 100.0 % (the UTS NCI Acquisition ).

We paid $ 5 million in 2019 and $ 6 million in 2020, respectively, related to the UTS NCI Acquisition.

During 2018, we increased our ownership in C&W Jamaica from 82.0 % to 92.3 % by acquiring 1,727,047,174 of the issued and outstanding ordinary stock units of C&W Jamaica that we did not already own (the C&W Jamaica NCI Acquisition ) for JMD 1.45 per share or JMD 2,504 million ($ 20 million at the transaction dates) of paid consideration.

On October 17, 2018, we acquired the remaining 40.0 % partnership interests in LCPR from Searchlight Capital Partners, L.P.

( Searchlight ) in exchange for 9,500,000 unregistered Liberty Latin America Class C common shares (the LPR NCI Acquisition ).

Liberty Puerto Rico Equity Commitment

In December 2017, and in connection with challenging circumstances that Liberty Puerto Rico experienced as a result of the damage caused by the 2017 Hurricanes, the LPR Credit Agreements were amended to provide for, among other things, a commitment from Liberty Puerto Rico’s shareholders through December 31, 2018 to fund potential liquidity shortfalls.

During 2018, prior to the LPR NCI Acquisition, capital contributions aggregating $ 45 million were provided to Liberty Puerto Rico

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

consisting of $ 27 million from us and $ 18 million from investment funds affiliated with Searchlight.

The capital contributions from Searchlight are included in our consolidated statement of equity as an increase to noncontrolling interests.

(20) Commitments and Contingencies

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Payments due during:

2021 2022 2023 2024 2025 Thereafter Total

Programming commitments

$ 139.9 $ 89.7 $ 52.8 $ 43.2 $ 0.5 $ — $ 326.1

Network and connectivity commitments 57.5 13.7 10.0 9.1 6.3 9.5 106.1

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Other commitments 9.4 1.9 1.6 1.5 1.4 8.4 24.2

The commitments included in this table do not reflect any liabilities that are included in our December 31, 2019 consolidated balance sheet.

Programming commitments consist of obligations associated with certain programming, studio output and sports rights contracts that are enforceable and legally binding on us as we have agreed to pay minimum fees without regard to (i) the actual number of subscribers to the programming services, (ii) whether we terminate service to a portion of our subscribers or dispose of a portion of our distribution systems or (iii) whether we discontinue our premium sports services.

$ 305.0 $ 111.8 $ 65.8 $ 53.8 $ 8.2 $ 17.9 $ 562.5

(a) The commitments included in this table do not reflect any liabilities that are included in our December 31, 2020 consolidated balance sheet.

Programming commitments consist of obligations associated with certain contracts including channels, programming, and sports rights contracts with a wide range of providers that are enforceable and legally binding on us, as we have agreed to pay minimum fees without regard to (i) the actual number of subscribers to the programming services, (ii) whether we terminate service to a portion of our subscribers or dispose of a portion of our distribution systems or (iii) whether we discontinue our premium sports services.

In addition, programming commitments do not include increases in future periods associated with contractual inflation or other price adjustments that are not fixed.

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Historically, payments to programming vendors have represented a significant portion of our operating costs, and we expect that this will continue to be the case in future periods.

In this regard, our total programming and copyright costs aggregated $ 406 million , $ 400 million and $ 388 million during 2019 , 2018 and 2017 , respectively.

Network and connectivity commitments include (i) VTR ’s domestic network service agreements with certain other telecommunications companies and (ii) VTR ’s mobile virtual network operator ( MVNO ) agreement.

Network and connectivity commitments include (i) domestic network service agreements with certain other telecommunications companies and (ii) VTR’s mobile virtual network operator ( MVNO ) agreement.

The amounts reflected in the above table with respect to our MVNO commitment represent fixed minimum amounts payable under this agreement and, therefore, may be significantly less than the actual amounts VTR ultimately pays in these periods.

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For information concerning our defined benefit plans, see note 16.

We have established various defined contribution benefit plans for our employees.

Our aggregate expense for matching contributions under the various defined contribution employee benefit plans was $ 13 million , $ 10 million and $ 12 million during 2019 , 2018 and 2017 , respectively.

Guarantees and Other Credit Enhancements

In the ordinary course of business, we may provide (i) indemnifications to our lenders, our vendors and certain other parties and (ii) performance and/or financial guarantees to local municipalities, our customers and vendors.

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

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.

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

in the future.

In addition, C&W has provided indemnifications of (i) up to $ 300 million with respect to any potential tax-related claims related to the disposal in April 2013 of C&W ’s interests in certain businesses and (ii) an unlimited amount of qualifying claims associated with the disposal of another business in May 2014.

The first indemnification expires in April 2020 and the second expires in May 2020.

We do not expect that either of these arrangements will require us to make material payments to the indemnified parties.

Legal and Regulatory Proceedings and Other Contingencies

VTR Class Action.

On August 25, 2020, VTR was notified that the Chilean National Consumer Authority (“ SERNAC ”, the Spanish acronym for Servicio Nacional del Consumidor) had filed a class action complaint against VTR in the 14th Civil Court of Santiago.

The complaint relates to consumer complaints regarding VTR’s broadband service and capacity during the pandemic and raises claims regarding, among other things, VTR’s disclosure of its broadband speeds and aggregate capacity availability and VTR’s response to address the causes of service instability during the pandemic.

VTR was also notified in August about two additional class action complaints filed by two Chilean consumer associations (ODECU and AGRECU) making similar claims and allegations.

The class action complaint of ODECU was filed in the 21st Civil Court of Santiago, and the class action complaint of AGRECU was filed in the 26th Civil Court of Santiago.

The complaint of SERNAC and ODECU seeks (i) the Court declare that VTR has infringed the rules of the Consumer Protection Law;

(ii) the responsibility of VTR for such infractions and, if so, establish the corresponding fines;

and (iii) compensatory damages.

In the case of AGRECU, the complaint only seeks compensatory damages.

On October 22, 2020, VTR was notified of a fourth class action complaint filed by Conadecus in the 16 th Civil Court of Santiago alleging that VTR did not adhere to certain call center, technical visit and service level requirements under applicable law.

We believe that the allegations contained in the complaints are without merit, in particular as it relates to VTR’s service and response during the pandemic and intend to defend the complaints vigorously.

We cannot predict at this point the length of time that these actions will be ongoing.

Additionally, a liability, if any, or a reasonable range of loss is not currently determinable based upon the current facts and circumstances of these claims.

Regulatory Issues.

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(21) Segment Reporting

Our reportable segments derive their revenue primarily from residential and B2B services, including video, broadband internet and fixed-line telephony services and mobile services.

Our corporate category includes our corporate operations.

We generally identify our reportable segments as those operating segments that represent 10% or more of our revenue, Adjusted OIBDA (as defined below) or total assets.

During the fourth quarter of 2020, we completed an organizational change with respect to our C&W operations whereby management of the CWP subsidiary of C&W now reports directly to the President and Chief Operating Officer of Liberty Latin America and no longer reports to the former C&W segment decision maker.

As a result, CWP is now a separate operating and reportable segment, herein referred to as the C&W Panama segment.

Accordingly, as of December 31, 2020, our reportable segments are as follows:

• C&W Caribbean and Networks;

• C&W Panama;

• VTR/Cabletica;

• Liberty Puerto Rico.

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

For each of the respective years in the tables set forth below, the amounts presented exclude the pre-acquisition revenue, Adjusted OIBDA, property and equipment additions and long-lived assets of Cabletica, UTS and the AT&T Acquired Entities, which were acquired on October 1, 2018, March 31, 2019 and October 31, 2020, respectively.

For more information regarding our acquisitions, see note 4.

Performance Measures of our Reportable Segments

We evaluate performance and make decisions about allocating resources to our reportable segments based on financial measures such as revenue and Adjusted OIBDA.

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Adjusted OIBDA is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of incentive compensation plans.

As we use the term, “ Adjusted OIBDA ” is defined as operating income or loss before depreciation and amortization, share-based compensation, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items.

As we use the term, “Adjusted OIBDA” is defined as operating income or loss before share-based compensation, depreciation and amortization, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items.

Other operating items include (i) gains and losses on the disposition of long-lived assets, (ii) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (iii) other acquisition-related items, such as gains and losses on the settlement of contingent consideration.

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A reconciliation of total Adjusted OIBDA to operating income (loss) and to loss before income taxes is presented below.

As of December 31, 2019 , our reportable segments are as follows:

• VTR/Cabletica

• Liberty Puerto Rico

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2019, 2018 and 2017

Our reportable segments derive their revenue primarily from residential and B2B services, including video, broadband internet and fixed-line telephony services and, with the exception of Liberty Puerto Rico , mobile services.

We provide residential and B2B services in (i) over 20 countries, primarily in Latin America and the Caribbean, through C&W , (ii) Chile and Costa Rica, through VTR/Cabletica , and (iii) Puerto Rico, through Liberty Puerto Rico .

C&W also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region.

Our corporate category includes our corporate operations.

Performance Measures of our Reportable Segments

The amounts presented below represent 100 % of the revenue and Adjusted OIBDA of each of our reportable segments and our corporate operations.

As we have the ability to control Cabletica and certain subsidiaries of C&W that are not wholly owned, we include 100 % of the revenue and expenses of these entities in our consolidated statements of operations despite the fact that third parties own significant interests in these entities.

As further described in note 1, as we have the ability to control Cabletica and certain subsidiaries of C&W that are not wholly owned, we include 100 % of the revenue and expenses of these entities in our consolidated statements of operations despite the fact that third parties own significant interests in these entities.

On October 17, 2018, we acquired the remaining 40.0 % interest in LCPR that we did not already own.

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Year ended December 31,

VTR/Cabletica (b)

2020 2019 2018

C&W Caribbean and Networks $ 1,706.8 $ 1,812.8 $ 1,738.7

C&W Panama 500.2 582.7 600.9

VTR/Cabletica 949.0 1,073.8 1,043.7

Liberty Puerto Rico 624.1 412.1 335.6

Corporate 2.7 — —

Intersegment eliminations

The amounts presented exclude the pre-acquisition revenue of UTS , which was acquired effective March 31, 2019 .

The amounts presented for 2018 and 2017 exclude the pre-acquisition revenue of Cabletica , which was acquired on October 1, 2018 .

Adjusted OIBDA

Year ended December 31,

VTR/Cabletica (b)

Liberty Puerto Rico

The amounts presented exclude the pre-acquisition Adjusted OIBDA of UTS , which was acquired effective March 31, 2019 .

The amounts presented for 2018 and 2017 exclude the pre-acquisition Adjusted OIBDA of Cabletica , which was acquired on October 1, 2018 .

( 18.2 ) ( 14.4 ) ( 13.2 )

Total $ 3,764.6 $ 3,867.0 $ 3,705.7

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

The following table provides a reconciliation of total Adjusted OIBDA to loss before income taxes:

Adjusted OIBDA

Year ended December 31,

2020 2019 2018

C&W Caribbean and Networks $ 713.2 $ 732.1 $ 664.3

C&W Panama 177.2 227.6 251.4

VTR/Cabletica 361.9 433.6 421.1

Liberty Puerto Rico 276.9 203.2 195.8

( 44.5 ) ( 55.1 ) ( 46.1 )

Total $ 1,484.7 $ 1,541.4 $ 1,486.5

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

Year ended December 31,

2020 2019 2018

Total Adjusted OIBDA

$ 1,484.7 $ 1,541.4 $ 1,486.5

Share-based compensation expense ( 97.5 ) ( 57.5 ) ( 39.8 )

1 unchanged sentence

Impairment, restructuring and other operating items, net

( 380.9 ) ( 259.1 ) ( 640.5 )

Operating income (loss) 91.7 353.8 ( 23.6 )

5 unchanged sentences

Loss before income taxes $ ( 838.2 ) $ ( 280.6 ) $ ( 584.7 )

Liberty Latin America Ltd.

Notes to Consolidated Financial Statements – (Continued)

December 31, 2020, 2019 and 2018

Property and Equipment Additions of our Reportable Segments

The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or finance lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our consolidated statements of cash flows.

The property and equipment additions of our reportable segments and corporate operations (including capital additions financed under vendor financing or finance lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our consolidated statements of cash flows.

For additional information concerning capital additions financed under vendor financing, see note 9.

Year ended December 31,

VTR/Cabletica (b)

2020 2019 2018

C&W Caribbean and Networks $ 246.8 $ 305.8 $ 302.0

C&W Panama 70.4 89.7 76.7

VTR/Cabletica 196.4 222.7 214.7

Liberty Puerto Rico 97.3 88.0 161.9

Corporate 20.2 15.3 16.1

Total property and equipment additions 631.1 721.5 771.4

Assets acquired under capital-related vendor financing arrangements

( 99.1 ) ( 96.1 ) ( 53.9 )

Acquisition of intangible assets (a) 7.8 — —

Assets acquired under finance leases — ( 0.2 ) ( 3.9 )

Changes in current liabilities related to capital expenditures

26.0 ( 36.1 ) 62.8

Total capital expenditures $ 565.8 $ 589.1 $ 776.4

The amounts presented exclude the pre-acquisition property and equipment additions of UTS , which was acquired effective March 31, 2019 .

The amounts presented for 2018 and 2017 exclude the pre-acquisition property and equipment additions of Cabletica , which was acquired on October 1, 2018 .

(a) Represents cash paid for the acquisition of spectrum license intangible assets.

Balance Sheet Data of our Reportable Segments

We do not present the balance sheet data of our reportable segments, as this information is not a primary measure used by our chief operating decision maker to evaluate segment operating performance, determine the allocation of resources to segments, or assess the effectiveness of our management for purposes of annual or other incentive compensation plans.

Revenue by Major Category

Our revenue by major category for our reportable segments, set forth in the tables below, includes the following categories:

• residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively;

• residential fixed non-subscription revenue primarily includes interconnect and advertising revenue;

• B2B service revenue primarily includes broadband internet, video, fixed-line telephony, mobile and managed services (including equipment installation contracts) offered to small (including small or home office), medium and large enterprises and, on a wholesale basis, other telecommunication operators;

• B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time.

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

Balance Sheet Data of our Reportable Segments

We do not present the balance sheet data of our reportable segments, as this information is not a primary measure used by our chief operating decision makers to evaluate segment operating performance, determine the allocation of resources to segments, or assess the effectiveness of our management for purposes of annual or other incentive compensation plans.

Revenue by Major Category

Our revenue by major category for our reportable segments is set forth in the tables below.

As further described in note 2 , we adopted ASU 2014-09 effective January 1, 2018 using the cumulative effect transition method.

The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The adoption of ASU 2014-09 did not have a material impact on our revenue by category.

Year ended December 31, 2020

VTR/Cabletica

Liberty Puerto Rico

Intersegment Eliminations (b)

C&W Caribbean and Networks C&W Panama VTR/Cabletica Liberty Puerto Rico Corporate (a) Intersegment Eliminations Total

Residential revenue:

Residential fixed revenue:

Subscription revenue (c):

Subscription revenue:

Video $ 142.4 $ 27.8 $ 370.6 $ 147.2 $ — $ — $ 688.0

Broadband internet 250.0 39.0 382.7 204.7 — — 876.4

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Total subscription revenue 467.0 85.6 830.5 377.4 — — 1,760.5

Non-subscription revenue (d)

Non-subscription revenue 42.2 11.8 24.3 17.7 — — 96.0

Total residential fixed revenue 509.2 97.4 854.8 395.1 — — 1,856.5

Residential mobile revenue:

Service revenue (c)

Interconnect, equipment sales and other (e)

Service revenue 294.1 160.1 55.7 82.9 — — 592.8

Interconnect, inbound roaming, equipment sales and other (b) 44.4 41.0 8.2 50.6 2.7 — 146.9

Total residential mobile revenue 338.5 201.1 63.9 133.5 2.7 — 739.7

Total residential revenue 847.7 298.5 918.7 528.6 2.7 — 2,596.2

Service revenue (f)

Subsea network revenue (g)

Service revenue (c) 600.4 201.7 30.3 89.8 — ( 4.1 ) 918.1

Subsea network revenue 258.7 — — — — ( 14.1 ) 244.6

Total B2B revenue 859.1 201.7 30.3 89.8 — ( 18.2 ) 1,162.7

The amounts presented exclude the pre-acquisition revenue of UTS , which was acquired effective March 31, 2019 .

Represents intersegment transactions between (i) C&W and Liberty Puerto Rico and (ii) C&W and VTR/Cabletica .

Residential fixed subscription and residential mobile services revenue include amounts received from subscribers for ongoing fixed and airtime services, respectively.

Residential fixed non-subscription revenue primarily includes interconnect and advertising revenue.

The total amount includes $ 43 million of revenue from sales of mobile handsets and other devices.

B2B service revenue primarily includes broadband internet, video, fixed-line telephony, mobile and managed services (including equipment installation contracts) offered to small (including small or home office), medium and large enterprises

Other revenue (d) — — — 5.7 — — 5.7

Total $ 1,706.8 $ 500.2 $ 949.0 $ 624.1 $ 2.7 $ ( 18.2 ) $ 3,764.6

(a) Amount relates to services we now provide, following the AT&T Acquisition, for mobile handset insurance.

(b) During 2020, we changed our presentation of inbound roaming revenue whereby we no longer include it in “mobile services revenue” and now present it within “mobile interconnect, inbound roaming, equipment sales and other” to better align with how management evaluates the business.

The total amount includes $ 27 million of inbound roaming revenue.

The total amount also includes $ 68 million of revenue from sales of mobile handsets and other devices.

(c) The total amount includes $ 18 million of revenue from sales of mobiles handsets and other devices to B2B mobile customers.

(d) Amount relates to revenue received from the FCC related to Liberty Mobile following the closing of the AT&T Acquisition.

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

and, on a wholesale basis, other telecommunication operators.

The total amount also includes $ 26 million of revenue from sales of mobiles handsets and other devices.

B2B subsea network revenue includes long-term capacity contracts with customers where the customer either pays a fee over time or prepays for the capacity upfront and pays a portion related to operating and maintenance of the network over time.

Year ended December 31, 2019

VTR/Cabletica (a)

Liberty Puerto Rico

Intersegment Eliminations (b)

C&W Caribbean and Networks C&W Panama VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations Total

Residential revenue:

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Subscription revenue:

Video $ 150.1 $ 31.0 $ 422.1 $ 140.9 $ — $ 744.1

Broadband internet 225.1 34.9 412.0 175.0 — 847.0

5 unchanged sentences

Service revenue 339.1 183.8 62.7 — — 585.6

Interconnect, equipment sales and other (c)

Interconnect, inbound roaming, equipment sales and other (a) 65.3 56.8 12.0 — — 134.1

Total residential mobile revenue 404.4 240.6 74.7 — — 719.7

Total residential revenue 906.6 343.4 1,043.8 361.0 — 2,654.8

Service revenue (d)

Service revenue (b) 659.3 239.3 30.0 51.1 ( 4.2 ) 975.5

Subsea network revenue 246.9 — — — ( 10.2 ) 236.7

Total B2B revenue 906.2 239.3 30.0 51.1 ( 14.4 ) 1,212.2

Other revenue (e)

The amounts presented exclude the pre-acquisition revenue of Cabletica, which was acquired on October 1, 2018 .

Represents intersegment transactions between C&W and Liberty Puerto Rico .

The total amount includes $ 47 million of revenue from sales of mobile handsets and other devices.

The total amount includes $ 23 million of revenue from sales of mobiles handsets and other devices.

Represents funds received by Liberty Puerto Rico from the FCC , which were granted to help restore and improve coverage and service quality from damages caused by the 2017 Hurricanes .

Total $ 1,812.8 ` $ 582.7 $ 1,073.8 $ 412.1 $ ( 14.4 ) $ 3,867.0

(a) During 2020, we reclassified $ 37 million of inbound roaming revenue from “mobile services revenue” to “interconnect, inbound roaming, equipment sales and other.” The total amount also includes $ 43 million of revenue from sales of mobile handsets and other devices.

(b) The total amount includes $ 26 million of revenue from sales of mobiles handsets and other devices.

Liberty Latin America Ltd.

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Year ended December 31, 2018

VTR/ Cabletica

Liberty Puerto Rico

Intersegment Eliminations (a)

C&W Caribbean and Networks C&W Panama VTR/Cabletica Liberty Puerto Rico Intersegment Eliminations Total

Residential revenue:

1 unchanged sentence

Subscription revenue:

Video $ 143.0 $ 29.0 $ 401.4 $ 118.9 $ — $ 692.3

Broadband internet 194.3 31.0 386.5 132.5 — 744.3

5 unchanged sentences

Service revenue 344.5 211.3 62.9 — — 618.7

Interconnect, equipment sales and other (b)

Interconnect, inbound roaming, equipment sales and other (a) 71.8 56.2 13.2 — — 141.2

Total residential mobile revenue 416.3 267.5 76.1 — — 759.9

Total residential revenue 880.2 370.2 1,018.0 287.4 — 2,555.8

Service revenue (c)

Service revenue (b) 610.5 230.7 25.7 37.1 ( 5.4 ) 898.6

Subsea network revenue 248.0 — — — ( 7.8 ) 240.2

Total B2B revenue 858.5 230.7 25.7 37.1 ( 13.2 ) 1,138.8

Represents intersegment transactions between C&W and Liberty Puerto Rico .

The total amount includes $ 44 million of revenue from sales of mobile handsets and other devices.

The total amount includes $ 17 million of revenue from sales of mobile handsets and other devices.

Other revenue (c) — — — 11.1 — 11.1

Total $ 1,738.7 $ 600.9 $ 1,043.7 $ 335.6 $ ( 13.2 ) $ 3,705.7

(a) During 2020, we reclassified $ 38 million of inbound roaming revenue from “mobile services revenue” to “interconnect, inbound roaming, equipment sales and other.” The total amount also includes $ 47 million of revenue from sales of mobile handsets and other devices.

(b) The total amount includes $ 23 million of revenue from sales of mobiles handsets and other devices.

(c) Represents funds received by Liberty Puerto Rico from the FCC, which were granted to help restore and improve coverage and service quality from damages caused by the 2017 Hurricanes.

Liberty Latin America Ltd.

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The revenue from third-party customers for our geographic markets is set forth in the table below.

Except as otherwise noted, the amounts presented include revenue from residential and B2B operations.

Year ended December 31,

2020 2019 2018

Panama $ 497.8 $ 580.4 $ 597.4

Networks & LatAm (a) 353.6 351.0 356.2

Jamaica 375.5 383.3 361.6

The Bahamas 181.1 207.3 229.2

Barbados 139.2 150.2 151.3

Trinidad and Tobago 160.6 161.3 157.4

Costa Rica (c)

The amounts represent managed services and wholesale revenue from various jurisdictions across Latin America and the Caribbean, primarily related to the sale and lease of telecommunications capacity on C&W ’s subsea and terrestrial fiber optic cable networks.

The amounts presented exclude the pre-acquisition revenue of UTS , which was acquired effective March 31, 2019 .

Represents revenue associated with Cabletica , which was acquired on October 1, 2018 .

The amounts relate to a number of countries in which C&W has less significant operations, all of which are located in Latin America and the Caribbean.

Curacao 139.7 120.0 22.8

Chile 809.0 941.1 1,011.1

Costa Rica 139.9 132.7 32.6

Puerto Rico 611.0 410.5 333.8

Other (b) 357.2 429.2 452.3

$ 3,764.6 $ 3,867.0 $ 3,705.7

(a) The amounts represent managed services and wholesale revenue from various jurisdictions across Latin America and the Caribbean, primarily related to the sale and lease of telecommunications capacity on C&W’s subsea and terrestrial fiber optic cable networks.

(b) The amounts primarily relate to a number of countries in which we have less significant operations, all of which are located in the Caribbean, and to a lesser extent, in Latin America.

Liberty Latin America Ltd.

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The long-lived assets of our geographic markets are set forth below:

Networks & LatAm (b)

Panama $ 354.8 $ 391.6

Networks & LatAm (a) 721.7 751.0

Jamaica 360.5 374.6

The Bahamas 342.4 359.4

Barbados 185.2 193.7

Trinidad and Tobago 214.5 216.0

Amounts for 2018 have been revised to conform with the current period presentation, which excludes intangible assets and goodwill.

Represents long-lived assets related to C&W ’s subsea and terrestrial fiber optic cable networks that connect over 40 markets in Latin America and the Caribbean.

The amount presented for 2019 includes the long-lived assets of UTS , which was acquired effective March 31, 2019 .

The amounts primarily include long-lived assets of C&W ’s other operations, which are primarily located in the Caribbean.

Curacao 161.5 169.6

Chile 755.0 710.8

Costa Rica 67.4 67.6

Puerto Rico 1,217.9 524.2

Other (b) 530.5 542.6

$ 4,911.4 $ 4,301.1

(a) Represents long-lived assets related to C&W’s subsea and terrestrial fiber optic cable networks that connect over 40 markets in Latin America and the Caribbean.

(b) The amounts primarily include long-lived assets of C&W’s other operations, which are primarily located in the Caribbean, and to a lesser extent, in Latin America.

(22) Quarterly Financial Information (Unaudited)

in millions, except per share amounts

Revenue (a) $ 931.0 $ 848.9 $ 887.5 $ 1,097.2

Operating income (loss)

Net earnings (loss) attributable to Liberty Latin America shareholders

Basic and diluted net earnings (loss) per share attributable to Liberty Latin America shareholders (b)

$ 107.8 $ ( 206.0 ) $ 86.6 $ 103.3

Net loss attributable to Liberty Latin America shareholders $ ( 180.7 ) $ ( 393.0 ) $ ( 84.6 ) $ ( 28.9 )

Basic and diluted net loss per share attributable to Liberty Latin America shareholders (b) $ ( 0.98 ) $ ( 2.12 ) $ ( 0.46 ) $ ( 0.12 )

in millions, except per share amounts

Revenue (c) $ 942.7 $ 982.9 $ 966.8 $ 974.6

Operating income (loss)

Net loss attributable to Liberty Latin America shareholders

Basic and diluted net loss per share attributable to Liberty Latin America shareholders (d)

As discussed in note 4, we completed the UTS Acquisition in March 2019.

$ 113.3 $ 143.5 $ ( 69.7 ) $ 166.7

Net earnings (loss) attributable to Liberty Latin America shareholders $ ( 41.7 ) $ ( 116.0 ) $ 35.3 $ 42.3

Basic and diluted net earnings (loss) per share attributable to Liberty Latin America shareholders (d) $ ( 0.23 ) $ ( 0.63 ) $ 0.19 $ 0.23

(a) As discussed in note 4, we completed the AT&T Acquisition in October 2020.

(b) The basic net loss per share attributable to Liberty Latin America shareholders amounts are calculated based on a weighted average number of Liberty Latin America Shares outstanding of 184,950,252 , 185,424,779 , 185,380,797 and 232,014,448 , respectively.

Liberty Latin America Ltd.

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December 31, 2020, 2019 and 2018

The basic net earnings (loss) per share attributable to Liberty Latin America shareholders amounts are calculated based on a weighted average number of Liberty Latin America Shares outstanding of 181,036,790 , 181,504,385 , 181,588,912 and 181,887,158 , respectively.

(d) The basic net earnings (loss) per share attributable to Liberty Latin America shareholders amounts are calculated based on a weighted average number of Liberty Latin America Shares outstanding of 183,891,922 , 184,366,504 , 184,452,387 and 184,755,090 , respectively.

The dilutive net earnings per share attributable to Liberty Latin America shareholders amounts for the third and fourth quarters of 2019 are calculated based on a weighted average number of Liberty Latin America Shares outstanding of 184,807,225 and 184,820,386 , respectively.

As discussed in note 4, we completed the Cabletica Acquisition in October 2018.

Amounts are calculated based on a weighted average number of shares outstanding of 171,231,111 , 171,278,819 , 171,378,608 and 179,288,782 , respectively.

( 21 ) Subsequent Events

Financing and Refinancing Transactions

C&W Term Loan B-5 Facility .

In January 2020, Coral-US Co-Borrower LLC, a wholly-owned subsidiary of C&W , entered into a LIBOR plus 2.25 % $ 1,510 million principal amount term loan facility (the C&W Term Loan B-5 Facility ), issued at par, due January 31, 2028.

Interest is payable monthly beginning on February 28, 2020.

In addition, the maturity date associated with $ 575 million of the existing $ 625 million C&W Revolving Credit Facility was extended to January 30, 2026, all other terms and conditions of the revolving credit facility remain unchanged.

2027 C&W Senior Secured Notes Add-on .

The terms and conditions of the 2027 C&W Senior Secured Notes Add-on are consistent with the original indenture.

The net proceeds from the C&W Term Loan B-5 Facility and the 2027 C&W Senior Secured Notes Add-on were primarily used to repay in full the $ 1,640 million outstanding principal amount under the C&W Term Loan B-4 Facility , including accrued and unpaid interest.

C&W Borrowing Group Refinancing Transactions .

In January 2020, C&W completed a series of transactions contemplated by and permitted under its existing debt agreements (the C&W Borrowing Group Refinancing Transactions ) that ultimately resulted in the 2026 C&W Senior Notes and the 2027 C&W Senior Notes (previously issued by C&W Senior Financing ) instead being directly issued by a wholly-owned subsidiary of C&W , C&W Senior Finance Limited ( C&W Senior Finance ).

In connection with the C&W Borrowing Group Refinancing Transactions , the 2026 C&W Financing Loan and the 2027 C&W Financing Loan are no longer outstanding.

The terms and conditions applicable to the 2026 C&W Senior Notes and the 2027 C&W Senior Notes otherwise remained substantively unchanged.

The following required information is incorporated by reference to our definitive proxy statement for our 2021 Annual General Meeting of Shareholders, which we intend to hold during the second quarter of 2021.

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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

PRINCIPAL ACCOUNTING FEES AND SERVICES

PRINCIPAL ACCOUNTANT FEES AND SERVICES

We intend to file our definitive proxy statement for our 2021 Annual General Meeting of Shareholders with the Securities and Exchange Commission on or before April 30, 2021.

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) (1) FINANCIAL STATEMENT

(a) (1) FINANCIAL STATEMENTS

The financial statements required under this Item begin on page II-57 of this Annual Report on Form 10-K.

(a) (2) FINANCIAL STATEMENT SCHEDULES

The financial statement schedules required under this Item are as follows:

The financial statement schedule required under this Item is as follows:

Schedule I - Condensed Financial Information of Registrant (Parent Company Information):

Liberty Latin America Ltd.

Condensed Balance Sheets as of December 31, 2019 and 2018 (Parent Company Only)

Condensed Balance Sheets as of December 31, 2020 and 2019 (Parent Company Only) IV- 7

Liberty Latin America Ltd.

Condensed Statements of Operations for the years ended December 31, 2019 and December 31, 2018, and from the date of inception (July 17, 2017) to December 31, 2017 (Parent Company Only)

Condensed Statements of Operations for the years ended December 31, 2020, 2019 and 2018 (Parent Company Only) IV- 8

Liberty Latin America Ltd.

Condensed Statements of Cash Flows for the years ended December 31, 2019 and December 31, 2018, and from the date of inception (July 11, 2017) to December 31, 2017 (Parent Company Only)

Schedule II - Valuation and Qualifying Accounts

Condensed Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 (Parent Company Only) IV- 9

(a) (3) EXHIBITS

Listed below are the exhibits filed as part of this Annual Report on Form 10-K (according to the number assigned to them in Item 601 of Regulation S-K):

Reorganization Agreement, dated as of December 29, 2017, by and between Liberty Global plc (Liberty Global) and Liberty Latin America Ltd.

(Liberty Latin America) (incorporated by reference to Exhibit 2.1 to Post-Effective Amendment No.

1 to Liberty Latin America’s Registration Statement on Form S-1 filed on December 29, 2017 (File No.

333-221608)).

2.1 Stock Purchase Agreement, dated October 9, 2019, by and among AT&T Corp, AT&T International Holdings, LLC, SBC Telecom, Inc., Leo Cable LP and, for the limited purpose specified therein, Liberty Latin America (incorporated by reference to Exhibit 99.1 to Liberty Latin America’s Current Report on Form 8-K filed on October 15, 2019 (File No.

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001-38335) (the August 2019 10-Q)).

Indenture, dated October 25, 2019, between LCPR Senior Secured Financing Designated Activity Company, as issuer, LCPR Loan Financing LLC, as guarantor, BNY Mellon Corporate Trustee Services Limited, as trustee and The Bank of Nova Scotia, as security trustee*.***

Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.*

4.7 Indenture, dated October 25, 2019, between LCPR Senior Secured Financing Designated Activity Company, as issuer, LCPR Loan Financing LLC, as guarantor, BNY Mellon Corporate Trustee Services Limited, as trustee and The Bank of Nova Scotia, as security trustee (incorporated by reference to Exhibit 4.7 to Liberty Latin America’s Annual Report on Form 10-K for the year ended December 31, 2019 filed on February 19, 2020 (File No.

001-38335) (the 2019 10-K)).***

4.8 Indenture, dated July 1, 2020, by and between VTR Finance N.V.

(VTR Finance) and BNY Mellon Corporate Trustee Services Limited, as Trustee, The Bank of New York Mellon, London Branch, as Security Agent, and The Bank of New York Mellon as Paying Agent, Registrar and Transfer Agent, relating to VTR Finance’s 6.375% senior notes due 2028 (incorporated by reference to Exhibit 4.1 to Liberty Latin America’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 filed on August 5, 2020 (File No.

001-38335) (the August 2020 10-Q)).

4.9 Indenture, dated July 1, 2020, between VTR Comunicaciones SpA (VTR) and The Bank of New York Mellon, London Branch, as Trustee, and The Bank of New York Mellon as Paying Agent, Registrar and Transfer Agent, relating to VTR’s 5.125% senior secured notes due 2028 (incorporated by reference to Exhibit 4.2 to the August 2020 10-Q).

4.10 Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to Exhibit 4.8 to the 2019 10-K).

The Registrant undertakes to furnish to the Securities and Exchange Commission, upon request, a copy of all instruments with respect to long-term debt not filed herewith.

10.1 Additional Facility Joinder Agreement dated July 24, 2017 and entered into between, among others, Sable, Coral-US Co-Borrower LLC and The Bank of Nova Scotia, relating to the Credit Agreement dated May 16, 2016 as amended and restated on May 26, 2017 (incorporated by reference to Exhibit 4.1 to Liberty Global’s Current Report on Form 8-K filed July 28, 2017 (File No.

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and certain executive officers (incorporated by reference to Exhibit 10.1 to Liberty Latin America’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 filed on November 5, 2019 (File No.

Credit Agreement, dated October 25, 2019, between LCPR Loan Financing LLC, as borrower, LCPR Senior Secured Financing Designated Activity Company, as guarantor, The Bank of Nova Scotia, as administrative agent, The Bank of Nova Scotia, as security agent, and the lenders party thereto*.***

Credit Agreement, dated October 25, 2019, between Liberty Cablevision of Puerto Rico LLC, as borrower, Puerto Rico Cable Acquisition Company, as guarantor, The Bank of Nova Scotia, as administrative agent, The Bank of Nova Scotia, as security agent, and the lenders party thereto*.***

10.21 Credit Agreement, dated October 25, 2019, between LCPR Loan Financing LLC, as borrower, LCPR Senior Secured Financing Designated Activity Company, as guarantor, The Bank of Nova Scotia, as administrative agent, The Bank o f Nova Scotia, as security agent, and the lenders party ther eto (incorporated by reference to Exhibit 10.21 to the 2019 10-K).***

10.22 Credit Agreement, dated October 25, 2019, between Liberty Cablevision of Puerto Rico LLC, as borrower, Puerto Rico Cable Acquisition Company, as guarantor, The Bank of Nova Scotia, as administrative agent, The Bank of Nova Scotia, as security agent, and the lenders party thereto (incorporated by reference to Exhibit 10.22 of the 2019 10-K).***

10.23 Additional Facility Joinder Agreement dated January 24, 2020 and entered into between, among others, Sable International Finance Limited, Coral-US Co-Borrower LLC and The Bank of Nova Scotia (incorporated by reference to Exhibit 10.1 to Liberty Latin America’s Current Report on Form 8-K filed on January 30, 2020 (File No.

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10.24 Extension Amendment dated January 24, 2020 and entered into between, among others, Sable International Finance Limited, Coral-US Co-Borrower LLC and The Bank of Nova Scotia (incorporated by reference to Exhibit 10.2 to the January 2020 8-K).***

10.25 Liberty Latin America Ltd.

Nonemployee Director Deferred Compensation Plan (incorporated by reference to Exhibit 10.3 to Liberty Latin America’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 filed on May 5, 2020 (File No.

21 List of Subsidiaries.*

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32 Section 1350 Certifications.**

XBRL Inline Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

XBRL Inline Taxonomy Extension Schema Document.*

XBRL Inline Taxonomy Extension Calculation Linkbase Document.*

XBRL Inline Taxonomy Extension Definition Linkbase.*

XBRL Inline Taxonomy Extension Label Linkbase Document.*

XBRL Inline Taxonomy Extension Presentation Linkbase Document.*

101.INS XBRL Inline Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH XBRL Inline Taxonomy Extension Schema Document.*

101.CAL XBRL Inline Taxonomy Extension Calculation Linkbase Document.*

101.DEF XBRL Inline Taxonomy Extension Definition Linkbase.*

101.LAB XBRL Inline Taxonomy Extension Label Linkbase Document.*

101.PRE XBRL Inline Taxonomy Extension Presentation Linkbase Document.*

104 Cover Page Interactive Data File.* (formatted as Inline XBRL and contained in Exhibit 101)

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*** Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K.

Liberty Latin America hereby undertakes to furnish supplemental copies of any of the omitted schedules and exhibits upon request by the SEC;

Liberty Latin America hereby undertakes to furnish supplemental copies of any of the omitted schedules and exhibits upon request by the

provided, however, that the Company may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any schedule or exhibit so furnished.

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LIBERTY LATIN AMERICA LTD.

February 19, 2020

March 1, 2021 /s/ JOHN M.

Senior Vice President, Chief Legal Officer and Secretary

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.

Signature Title Date

/s/ MICHAEL T.

Executive Chairman of the Board

February 19, 2020

/s/ BALAN NAIR

President, Chief Executive Officer and Director

February 19, 2020

(Principal Executive Officer)

/s/ ALFONSO DE ANGOITIA NORIEGA

February 19, 2020

FRIES Executive Chairman of the Board March 1, 2021

/s/ BALAN NAIR President, Chief Executive Officer and Director March 1, 2021

Balan Nair (Principal Executive Officer)

/s/ ALFONSO DE ANGOITIA NORIEGA Director March 1, 2021

Alfonso de Angoitia Noriega

/s/ CHARLES H.R.

February 19, 2020

/s/ MIRANDA CURTIS

February 19, 2020

BRACKEN Director March 1, 2021

/s/ MIRANDA CURTIS Director March 1, 2021

Miranda Curtis

February 19, 2020

/s/ BRENDAN PADDICK

February 19, 2020

GOULD Director March 1, 2021

/s/ BRENDAN PADDICK Director March 1, 2021

Brendan Paddick

/s/ DANIEL SANCHEZ

February 19, 2020

/s/ DANIEL SANCHEZ Director March 1, 2021

Daniel Sanchez

February 19, 2020

/s/ CHRISTOPHER NOYES

Senior Vice President and Chief Financial Officer

February 19, 2020

Christopher Noyes

(Principal Financial Officer)

/s/ BRIAN ZOOK

Chief Accounting Officer

February 19, 2020

(Principal Accounting Officer)

ZINTERHOFER Director March 1, 2021

/s/ CHRISTOPHER NOYES Senior Vice President and Chief Financial Officer March 1, 2021

Christopher Noyes (Principal Financial Officer)

/s/ BRIAN ZOOK Chief Accounting Officer March 1, 2021

Brian Zook (Principal Accounting Officer)

[THIS PAGE INTENTIONALLY LEFT BLANK]

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Other receivables – related-party 122.1 60.7

Prepaid expenses 0.7 —

Other current assets 3.4 0.8

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Investments in consolidated subsidiaries

2,757.5 3,072.0

Other assets, net 0.2 0.2

Total assets $ 3,123.9 $ 3,704.0

LIABILITIES AND SHAREHOLDERS’ EQUITY

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Shareholders’ equity:

Class A, $0.01 par value;

Class A, $ 0.01 value;

500,000,000 shares authorized;

48,795,552 and 48,501,803 shares issued and outstanding, respectively

49,303,401 and 49,009,585 shares issued and outstanding, respectively, at December 31, 2020 and 48,795,552 shares issued and outstanding at December 31, 2019

Class B, $ 0.01 par value;

50,000,000 shares authorized;

1,934,686 and 1,935,949 shares issued and outstanding, respectively

1,932,386 shares issued and outstanding at December 31, 2020 and 1,934,686 shares issued and outstanding at December 31, 2019

Class C, $ 0.01 par value;

500,000,000 shares authorized;

131,181,371 and 130,526,158 shares issued and outstanding, respectively

181,786,924 and 181,113,766 shares issued and outstanding, respectively, at December 31, 2020 and 131,181,371 shares issued and outstanding at December 31, 2019

Treasury shares, at cost;

966,974 and nil shares, respectively

Additional paid-in capital 4,982.0 4,569.9

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Year ended December 31,

Period from the date of inception (July 11, 2017) to December 31, 2017

2020 2019 2018

Operating costs and expenses:

Selling, general and administrative (including share-based compensation)

Other operating costs and expenses $ 11.9 $ 11.8 $ 8.7

Depreciation and amortization

Other operating expenses

Impairment, restructuring and other operating items, net 33.1 23.8 24.5

Operating loss ( 45.0 ) ( 35.6 ) ( 34.0 )

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Interest expense – third-party

( 22.0 ) ( 10.9 ) —

Interest income – third-party — 4.6 —

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Other income (loss), net

( 1.3 ) ( 0.4 ) 1.1

( 20.3 ) ( 5.7 ) 1.8

Loss before equity in losses of consolidated subsidiaries and income taxes

( 65.3 ) ( 41.3 ) ( 32.2 )

Equity in losses of consolidated subsidiaries, net ( 621.9 ) ( 38.8 ) ( 313.0 )

Income tax expense

$ ( 687.2 ) $ ( 80.1 ) $ ( 345.2 )

LIBERTY LATIN AMERICA LTD.

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Year ended December 31,

Period from the date of inception (July 11, 2017) to December 31, 2017

2020 2019 2018

Cash flows from operating activities:

Net loss $ ( 687.2 ) $ ( 80.1 ) $ ( 345.2 )

Adjustments to reconcile net loss to net cash used by operating activities:

Equity in losses of consolidated subsidiaries, net

621.9 38.8 313.0

Share-based compensation expense 2.7 1.3 0.2

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Investments in and advances to consolidated subsidiaries ( 511.7 ) ( 5.1 ) ( 45.0 )

Other investing activities, net

Net cash used by investing activities ( 511.7 ) ( 10.2 ) ( 49.4 )

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Borrowings of third-party debt — 402.5 —

Repayments of related-party debt ( 101.1 ) —

Capped calls — ( 45.6 ) —

Repurchase of Liberty Latin America Shares ( 9.5 ) — —

Issuance of Liberty Latin America common shares, net 347.0 — —

Borrowings of related-party debt — 123.4 —

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

( 331.3 ) 474.7 ( 55.4 )

Cash, cash equivalents and restricted cash:

Beginning of year 524.6 49.9 105.3

LIBERTY LATIN AMERICA LTD.

VALUATION AND QUALIFYING ACCOUNTS

Allowance for doubtful accounts—Trade receivables

or write-offs

Year ended December 31:

End of year $ 193.3 $ 524.6 $ 49.9

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures