8 unchanged sentences
In order to mitigate this risk, we actively manage the denominations of our cash balances in consideration of Liberty Latin America’s forecasted liquidity requirements.
−Removed: At December 31, 2020, $74 million or 8.3% of our cash balance was denominated in Chilean pesos.
Foreign Currency Risk
20 unchanged sentences
We generally do not hedge against the risk that we may incur non-cash losses upon the translation of the financial statements of our operating subsidiaries and affiliates into U.S.
−Removed: The relationship between (i) the Chilean peso, the Jamaican dollar and the Costa Rican colón and (ii) the U.S.
+Added: The relationship between the (i) CLP, JMD and CRC and (ii) the U.S.
dollar, which is our reporting currency, is shown below, per one U.S.
As of December 31,
−Removed: Chilean peso 711.78 751.85
−Removed: Jamaican dollar 142.41 132.28
−Removed: Costa Rican colón 613.19 571.33
+Added: CLP 852.00 711.78
+Added: JMD 153.96 142.41
+Added: CRC 642.21 613.19
Year ended December 31,
1 unchanged sentence
Average rates:
−Removed: Chilean peso 791.70 703.92 642.17
−Removed: Jamaican dollar 142.08 133.48 129.26
−Removed: Costa Rican colón (a) 585.79 587.78 603.26
−Removed: (a) The rate for 2018 is the average rate during the fourth quarter of 2018, as we acquired Cabletica on October 1, 2018.
+Added: CLP 759.90 791.70 703.92
+Added: JMD 150.60 142.08 133.48
+Added: CRC 622.03 585.79 587.78
Inflation and Foreign Investment Risk
6 unchanged sentences
We are exposed to changes in interest rates primarily as a result of our borrowing activities, which include fixed-rate and variable-rate borrowings by our borrowing groups.
−Removed: Our primary exposure to variable-rate debt is through the LIBOR-indexed debt of C&W and Liberty Puerto Rico and, to a lesser extent, Cabletica.
+Added: Our primary exposure to variable-rate debt is through the LIBOR-indexed debt of C&W, Liberty Puerto Rico and Costa Rica.
In July 2017, the U.K.
3 unchanged sentences
dollar LIBOR publications until June 30, 2023, with the remainder of LIBOR publications still being phased out at the end of 2021.
−Removed: Currently, it is not possible to predict the exact transitional arrangements, or associated timelines, for calculating applicable reference rates that may be made in the U.K., the U.S., or elsewhere given that a number of outcomes are possible, including the cessation of the publication of one or more reference rates.
+Added: Currently, it is not possible to predict the exact transitional arrangements, or associated timelines, for calculating applicable reference rates that may be made in the U.S., or elsewhere given that a number of outcomes are possible, including the cessation of the publication of one or more reference rate s.
Our loan documents contain customary provisions that contemplate alternative calculations of the applicable base rate once LIBOR is no longer available.
Currently, we do not expect that these alternative calculations will be materially different from what would have been calculated under LIBOR.
−Removed: Additionally, no mandatory prepayment or redemption provisions would be triggered under our loan agreements in the even that the LIBOR rate is not available.
+Added: Additionally, no mandatory prepayment or redemption provisions would be triggered under our loan agreements in the event that the LIBOR rate is not available.
Also, it is possible that a new reference rate that applies to our LIBOR-indexed debt could be different than a new reference rate that applies to our LIBOR-indexed derivative instruments.
3 unchanged sentences
We use interest rate derivative contracts to exchange, at specified intervals, the difference between fixed and variable interest rates calculated by reference to an agreed-upon notional principal amount.
−Removed: At December 31, 2020, we paid a fixed rate of interest on 97% of our total debt, which includes the impact of interest rate derivative contracts.
−Removed: The final maturity dates of our various portfolios of interest rate derivative instruments generally fall short of the respective maturities of the underlying variable-rate debt.
−Removed: In this regard, we use judgment to determine the appropriate maturity dates of our portfolios of interest rate derivative
−Removed: instruments, taking into account the relative costs and benefits of different maturity profiles in light of current and expected future market conditions, liquidity issues and other factors.
+Added: At December 31, 2021, we paid a fixed or capped rate of interest on 97% of our total debt, which includes the impact of our interest rate derivative contracts.
+Added: The final maturity dates of our various portfolios of interest rate derivative instruments generally match the respective maturities of the underlying variable-rate debt.
+Added: In this regard, we use judgment to determine the appropriate maturity dates of our portfolios of interest rate derivative instruments, taking into account the relative costs and benefits of different maturity profiles in light of current and
+Added: expected future market conditions, liquidity issues and other factors.
For additional information concerning the impacts of these interest rate derivative instruments, see note 5 to our consolidated financial statements.
22 unchanged sentences
For additional information, see notes 5 and 6 to our consolidated financial statements.
−Removed: VTR Cross-currency and Interest Rate Derivative Contracts
−Removed: Holding all other factors constant, at December 31, 2020:
−Removed: An instantaneous increase (decrease) of 10% in the value of the Chilean peso relative to the U.S.
−Removed: dollar would have decreased (increased) the aggregate fair value of the VTR cross-currency derivative contracts by approximately CLP 127 billion or $178 million.
−Removed: An instantaneous increase (decrease) in the relevant based rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the VTR cross-currency and interest rate derivative contracts by approximately CLP 12 billion or $17 million.
C&W Cross-currency and Interest Rate Derivative Contracts
−Removed: Holding all other factors constant, at December 31, 2020, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the C&W cross-currency and interest rate derivative contracts by approximately $139 million .
+Added: Holding all other factors constant, at December 31, 2021, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the C&W cross-currency and interest rate derivative contracts by approximately $165 million ($160 million).
Liberty Puerto Rico Interest Rate Derivative Contracts
−Removed: Holding all other factors constant, at December 31, 2020, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the Liberty Puerto Rico interest rate derivative contracts by approximately $60 million.
+Added: Holding all other factors constant, at December 31, 2021, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the Liberty Puerto Rico interest rate derivative contracts by approximately $48 million ($38 million).
Projected Cash Flows Associated with Derivative Instruments
5 unchanged sentences
2022 2023 2024 2025 2026 Thereafter
−Removed: Projected derivative cash payments (receipts), net:
−Removed: Interest-related (a) $ 69.8 $ 71.1 $ 63.2 $ 65.3 $ 65.3 $ 123.4 $ 458.1
−Removed: Principal-related (b) — (1.5) — — — 163.1 161.6
−Removed: Other (c) 3.2 — — — — — 3.2
+Added: Projected derivative cash payments (receipts), net (a):
+Added: Interest-related (b) $ 29.9 $ 58.5 $ 44.5 $ 44.1 $ 43.7 $ 180.1 $ 400.8
+Added: Principal-related (c) — — — — (8.5) — (8.5)
+Added: Other (d) (2.5) — — — — — (2.5)
$ 27.4 $ 58.5 $ 44.5 $ 44.1 $ 35.2 $ 180.1 $ 389.8
−Removed: (a) Includes the interest-related cash flows of our cross-currency and interest rate derivative contracts.
−Removed: (b) Includes the principal-related cash flows of our cross-currency derivative contracts.
−Removed: (c) Includes amounts related to our foreign currency forward contracts.
+Added: (a) Amounts do not include projected cash flows related to derivatives of the Chile JV Entities, which comprise (i) total interest-related payments of $91 million, (ii) total principal-related receipts of $96 million and (iii) total foreign currency-related receipts of $23 million.
+Added: For information regarding the pending formation of the Chile JV, see note 9 to our consolidated financial statements.
+Added: (b) Includes the interest-related cash flows of our cross-currency and interest rate derivative contracts.
+Added: (c) Includes the principal-related cash flows of our cross-currency derivative contract.
+Added: (d) Includes amounts related to our foreign currency forward contracts.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
3 unchanged sentences
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.