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Item 7. Management’s Discussion and Analysis

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 
 See the Glossary of defined terms at the beginning of this Annual Report on Form 10-K. 
 The following discussion and analysis, which should be read in conjunction with our consolidated financial statements, is intended to assist in providing an understanding of our results of operations and financial condition and is organized as follows: 
 • Overview. This section provides a general description of our business and recent events. 
 • Results of Operations. This section provides an analysis of our results of operations for the years ended December 31, 2021, 2020 and 2019. 
 • Liquidity and Capital Resources. This section provides an analysis of our liquidity, consolidated statements of cash flows and contractual commitments. 
 • Critical Accounting Policies, Judgments and Estimates. This section discusses those material accounting policies that involve uncertainties and require significant judgment in their application. 
 Unless otherwise indicated, operational data (including subscriber statistics) is presented as of December 31, 2021. 
 
 Overview 
 General 
 We are an international provider of fixed, mobile and subsea telecommunications services. We provide, 
 A. residential and B2B services in: 
 i. over 20 countries across Latin America and the Caribbean through two of our reportable segments, C&W Caribbean and Networks and C&W Panama; 
 ii. Puerto Rico, through our reportable segment Liberty Puerto Rico; 
 iii. Chile, through our reportable segment VTR; and 
 iv. Costa Rica, through Cabletica and its subsidiary, Telefónica Costa Rica; and 
 B. through our Networks & LatAm business of our C&W Caribbean and Networks segment, (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect approximately 40 markets in that region. 
 Prior to the first quarter of 2021, VTR and Cabletica were collectively one operating segment. As a result of organizational changes during the first quarter of 2021, these operations became separate operating segments. Following the Telefónica Costa Rica Acquisition on August 9, 2021 (as further described in note 4), Cabletica and Telefónica Costa Rica now comprise our operating and reportable segment referred to herein as “Costa Rica.” Accordingly, as of December 31, 2021, our reportable segments are as follows: 
 • C&W Caribbean and Networks; 
 • C&W Panama; 
 • Liberty Puerto Rico; 
 • VTR; and 
 • Costa Rica. 
 As a result of the aforementioned segment change, we have revised the presentation of the discussion and analysis set forth below in order to align with the current segment presentation included in our consolidated financial statements. 
 Effective September 29, 2021, in connection with the pending formation of the Chile JV (as further described in note 9), we began accounting for the Chile JV Entities as “held for sale.” Accordingly, the assets and liabilities of the Chile JV Entities, excluding certain cash balances, are included in assets held for sale and liabilities associated with assets held for sale, respectively, on our December 31, 2021 consolidated balance sheet. Consistent with the applicable guidance, we have not reflected similar reclassifications to exclude Chile JV Entities from continuing operations in our consolidated statements of 
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 operations or cash flows. As a result, the discussion and analysis of our results of operations and cash flows set forth below continue to include the amounts associated with the Chile JV Entities. 
 At December 31, 2021, we (i) owned and operated fixed networks that passed 8,354,800 homes and served 6,441,000 RGUs comprising 2,850,200 broadband internet subscribers, 1,979,200 video subscribers and 1,611,600 fixed-line telephony subscribers, and (ii) served 7,540,300 mobile subscribers. 
 COVID-19 
 In December 2019, COVID-19 was reported in Wuhan, China. On March 11, 2020, the World Health Organization declared the outbreak a “pandemic,” pointing to the sustained risk of further global spread. During 2020, COVID-19 negatively impacted our operations relative to the 2019 period prior to the pandemic, particularly with respect to revenue associated with B2B and mobile operations within our C&W Caribbean and Networks, C&W Panama and VTR segments. Given COVID-19 continues to evolve, the extent to which COVID-19 may further impact our financial condition or results of operations continues to be uncertain and cannot be predicted at this tim e. The heightened volatility of global markets resulting from COVID-19 further expose us to risks and uncertainties. 
 Chile JV 
 On September 29, 2021, we entered into an agreement with América Móvil to contribute the Chile JV Entities to América Móvil’s Chilean operations, to form the Chile JV that will be owned 50:50 by Liberty Latin America and América Móvil. América Móvil is a telecommunications service provider with over 6.5 million mobile customers . The consummation of the transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2022. 
 Claro Panama Acquisition . 
 On September 14, 2021, we entered into a definitive agreement to acquire América Móvil’s operations in Panama in an all-cash transaction based upon an enterprise value of $200 million on a cash- and debt-free basis. The transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2022. 
 Telefónica Costa Rica Acquisition 
 On July 30, 2020, we entered into a definitive agreement to acquire Telefónica S.A.’s operations in Costa Rica in an all-cash transaction based upon an enterprise value of $500 million on a cash- and debt-free basis. On August 9, 2021, we completed the Telefónica Costa Rica Acquisition. The total purchase price of the Telefónica Costa Rica Acquisition was $538 million, which includes the impact of certain preliminary working capital adjustments totaling $38 million. The Telefónica Costa Rica Acquisition was financed through a combination of debt, existing cash and a $47 million equity contribution from the noncontrolling interest owner of our Cabletica entity, as further described in note 19 to the consolidated financial statements. 
 Strategy and Management Focus 
 From a strategic perspective, we are seeking to build or acquire broadband communications and mobile businesses that have strong prospects for future growth. As discussed further under Liquidity and Capital Resources—Capitalization below, we also seek to maintain our debt at levels that provide for attractive equity returns without assuming undue risk. 
 We strive to achieve “organic” revenue and customer growth in our operations by developing and marketing bundled entertainment, information and communications services, and extending and upgrading the quality of our networks where appropriate. As we use the term, organic growth excludes FX and the estimated impact of acquisitions and disposals. While we seek to increase our customer base, we also seek to maximize the average revenue we receive from each household or business by increasing the penetration of our video, broadband internet, fixed-line telephony and mobile services with existing customers through product bundling and up-selling. 
 We are engaged in the Network Extensions program across Liberty Latin America. The Network Extensions will occur in phases with priority given to the most accretive expansion opportunities. During 2021, our network extension and upgrade programs passed approximately 738,800 homes across Liberty Latin America. Depending on a variety of factors, including the financial and operational results of the programs, the Network Extensions may be continued, modified or cancelled at our discretion. See Item 1. Business—Products and Services—Residential Services—Internet Services . 
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 For information regarding our expectation with regard to property and equipment additions as a percent of revenue during 2022, see Liquidity and Capital Resources—Consolidated Statements of Cash Flows below. 
 Competition and Other External Factors 
 We are experiencing significant competition from other telecommunications operators and other communication service providers in all of our markets. The significant competition we are experiencing, together with macroeconomic factors, has adversely impacted our revenue, RGUs and/or ARPU in a number of C&W’s markets. In Chile, we continue to experience significant competition with respect to VTR’s fixed-line business, as competitors continue to upgrade their networks. For additional information regarding the revenue impact of changes in the RGUs and ARPU of our reportable segments, see discussion below . 
 
 
 
 Results of Operations 
 The comparability of our operating results during 2021, 2020 and 2019 is affected by acquisitions, disposals and FX effects. As we use the term, “organic” changes exclude FX and the impacts of acquisitions and disposals, each as further discussed below. 
 In the following discussion, we quantify the estimated impact on the operating results of the periods under comparison that is attributable to acquisitions and disposals. We (i) acquired (a) Telefónica’s operations in Costa Rica in August 2021, (b) AT&T’s wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands in October 2020, (c) a small B2B operation in the Cayman Islands in July 2020, and (d) UTS in March 2019; and (ii) disposed of (a) certain B2B operations in Puerto Rico in January 2021 in connection with the AT&T Acquisition, as further described in note 4 to our consolidated financial statements, and (b) our operations in the Seychelles in November 2019. With respect to acquisitions, organic changes and the calculations of our organic change percentages exclude the operating results of an acquired entity during the first 12 months following the date of acquisition. With respect to disposals, the prior-year operating results of disposed entities are excluded from organic changes and the calculations of our organic change percentages to the same extent that those operations are not included in the current year. 
 Changes in foreign currency exchange rates may have a significant impact on our operating results, as VTR, Costa Rica and certain entities within C&W have functional currencies other than the U.S. dollar. Our primary exposure to FX risk is to the Chilean peso, as a significant portion of our revenue is derived from VTR. For example, the average FX rate (utilized to translate our consolidated statements of operations) for the U.S. dollar per one Chilean peso depreciated by 4% for the year ended December 31, 2021, as compared to 2020, and appreciated by 12% for the year ended December 31, 2020, as compared to 2019. The impacts to the various components of our results of operations that are attributable to changes in FX are highlighted below. For information concerning our foreign currency risks and applicable foreign currency exchange rates, see Item 7A . Quantitative and Qualitative Disclosures About Market Risk—Foreign Currency Risk below. For information regarding foreign currency risk and implications resulting from the political unrest in Chile, see Item 1A. Risk Factors and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview each set forth above. 
 The amounts presented and discussed below represent 100% of the revenue and expenses of each segment and our corporate operations. As we have the ability to control certain subsidiaries 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. During the third quarter of 2019, we completed the UTS NCI Acquisition, as further defined and described in note 19 to our consolidated financial statements. The noncontrolling owners’ interests in the operating results of (i) certain subsidiaries of C&W and (ii) Costa Rica are reflected in net earnings or loss attributable to noncontrolling interests in our consolidated statements of operations. 
 On April 1, 2019, certain B2B operations in Puerto Rico were transferred from our C&W Caribbean and Networks segment to our Liberty Puerto Rico segment, and on January 1, 2020, our captive insurance operation was transferred from our C&W Caribbean and Networks segment to our corporate operations. These transfers did not have a significant impact on the financial results of our C&W Caribbean and Networks or Liberty Puerto Rico segments. 
 We are subject to inflationary pressures with respect to certain costs and foreign currency exchange risk with respect to costs and expenses that are denominated in currencies other than the respective functional currencies of our reportable segments. Any cost increases that we are not able to pass on to our subscribers would result in increased pressure on our operating margins. 
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 Year Ended December 31, 2021 as Compared with Year Ended December 31, 2020 
 Consolidated Adjusted OIBDA 
 On a consolidated basis, Adjusted OIBDA is a non-U.S. GAAP measure. Adjusted OIBDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance. 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. Our internal decision makers believe Adjusted OIBDA is a meaningful measure because it represents a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (i) readily view operating trends, (ii) perform analytical comparisons and benchmarking between segments and (iii) identify strategies to improve operating performance in the different countries in which we operate. We believe our Adjusted OIBDA measure is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measures may not be directly comparable to similar measures used by other public companies. Adjusted OIBDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income or loss. 
 
 A reconciliation of total operating income (loss), the nearest U.S. GAAP measure, to Adjusted OIBDA on a consolidated basis, is presented below for the periods indicated. 
 
 Year ended December 31, 
 2021 2020 
 in millions 
 
 Operating income $ 81.2 $ 93.2 
 Share-based compensation expense 118.1 97.5 
 Depreciation and amortization 964.7 918.7 
 Impairment, restructuring and other operating items, net 665.0 375.3 
 Consolidated Adjusted OIBDA $ 1,829.0 $ 1,484.7 

 
 The following table sets forth organic and non-organic changes in Adjusted OIBDA for the period indicated: 
 
 C&W Caribbean and Networks C&W Panama Liberty Puerto Rico VTR Costa Rica Corporate Intersegment eliminations Consolidated 
 in millions 
 Adjusted OIBDA for the twelve months ending: 
 
 December 31, 2020 $ 713.2 $ 177.2 $ 276.9 $ 307.0 $ 54.9 $ (44.5) $ — $ 1,484.7 
 Organic changes related to: 
 Revenue 65.6 47.4 63.2 (55.8) 13.3 18.9 (3.6) 149.0 
 Programming and other direct costs (14.2) (37.3) (10.7) (4.9) (8.0) — 1.4 (73.7) 
 Other operating costs and expenses (9.2) 12.8 (12.4) 2.0 (5.3) (27.3) 2.2 (37.2) 
 Non-organic increases (decreases): 
 FX (8.9) — — 11.3 (3.2) — — (0.8) 
 Acquisitions/disposition, net 0.7 — 277.8 — 28.5 — — 307.0 
 December 31, 2021 $ 747.2 $ 200.1 $ 594.8 $ 259.6 $ 80.2 $ (52.9) $ — $ 1,829.0 

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 Adjusted OIBDA Margin 
 The following table sets forth the Adjusted OIBDA margin (Adjusted OIBDA divided by revenue) of each of our reportable segments: 
 
 Year ended December 31, 
 2021 2020 
 % 
 
 C&W Caribbean and Networks 42.7 41.8 
 C&W Panama 36.5 35.4 
 Liberty Puerto Rico 40.8 44.4 
 VTR 33.0 37.9 
 Costa Rica 31.3 39.2 

 Adjusted OIBDA margin is impacted by organic changes in revenue, programming and other direct costs of services and other operating costs and expenses, as further discussed below. The decreases in the Adjusted OIBDA margin presented for both Liberty Puerto Rico and Costa Rica are primarily related to the inclusion of Liberty Mobile and Telefónica-Costa Rica operations following the AT&T Acquisition and Telefónica-Costa Rica Acquisition, respectively, that each generate lower Adjusted OIBDA margins relative to the legacy operations. In addition, the decrease in the Adjusted OIBDA margin for Liberty Puerto Rico is also impacted by an increase in roaming expense, and negative margin on handset sales that occurred during the second half of 2021. The decreases in the Adjusted OIBDA margin for VTR are primarily related to a decline in revenue, as further discussed below. 
 
 Revenue 
 All of our segments derive their revenue primarily from (i) residential fixed services, including video, broadband internet and fixed-line telephony, (ii) mobile services, and (iii) B2B services. C&W Caribbean and Networks also provides wholesale communication services over its subsea and terrestrial fiber optic cable networks. 
 While not specifically discussed in the below explanations of the changes in revenue, we are experiencing significant competition in all of our markets. This competition has an adverse impact on our ability to increase or maintain our RGUs and/or ARPU. 
 Variances in the subscription revenue that we receive from our customers are a function of (i) changes in the number of RGUs or mobile subscribers during the period and (ii) changes in ARPU. Changes in ARPU can be attributable to (i) changes in prices, (ii) changes in bundling or promotional discounts, (iii) changes in the tier of services selected, (iv) variances in subscriber usage patterns, and (v) the overall mix of fixed and mobile products during the period. In the following discussion, we discuss ARPU changes in terms of the net impact of the above factors on the ARPU that is derived from our video, broadband internet, fixed-line telephony and mobile products. 
 For the comparisons below, revenue variances, including changes in ARPU, were also influenced by the impacts of COVID-19, as further discussed below and in Overview above. 
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 The following tables set forth the organic and non-organic changes in revenue by reportable segment. 
 
 Year ended December 31, Increase (decrease) Increase (decrease) from: 
 2021 2020 FX Acquisitions (disposition), net Organic 
 in millions, except percentages 
 
 C&W Caribbean and Networks $ 1,751.2 $ 1,706.8 $ 44.4 $ (25.1) $ 3.9 $ 65.6 
 C&W Panama 547.6 500.2 47.4 — — 47.4 
 Liberty Puerto Rico 1,456.7 624.1 832.6 — 769.4 63.2 
 VTR 787.5 809.0 (21.5) 34.3 — (55.8) 
 Costa Rica 256.2 140.0 116.2 (8.9) 111.8 13.3 
 Corporate (a) 21.6 2.7 18.9 — — 18.9 
 Intersegment eliminations (21.8) (18.2) (3.6) — — (3.6) 
 Total $ 4,799.0 $ 3,764.6 $ 1,034.4 $ 0.3 $ 885.1 $ 149.0 

 (a) Amounts relate to services we provide for mobile handset insurance following the closing of the AT&T Acquisition. 
 
 
 
 
 C&W Caribbean and Networks . C&W Caribbean and Networks’s revenue by major category is set forth below: 
 
 Year ended December 31, Increase (decrease) 
 2021 2020 $ % 
 in millions, except percentages 
 Residential revenue: 
 Residential fixed revenue: 
 Subscription revenue: 
 Video $ 132.1 $ 142.4 $ (10.3) (7.2) 
 Broadband internet 273.2 250.0 23.2 9.3 
 Fixed-line telephony 68.1 74.6 (6.5) (8.7) 
 Total subscription revenue 473.4 467.0 6.4 1.4 
 Non-subscription revenue 43.4 42.2 1.2 2.8 
 Total residential fixed revenue 516.8 509.2 7.6 1.5 
 Residential mobile revenue: 
 Service revenue 300.2 294.1 6.1 2.1 
 Interconnect, inbound roaming, equipment sales and other (a) 55.1 44.4 10.7 24.1 
 Total residential mobile revenue 355.3 338.5 16.8 5.0 
 Total residential revenue 872.1 847.7 24.4 2.9 
 B2B revenue: 
 Service revenue 614.6 600.4 14.2 2.4 
 Subsea network revenue 264.5 258.7 5.8 2.2 
 Total B2B revenue 879.1 859.1 20.0 2.3 
 Total $ 1,751.2 $ 1,706.8 $ 44.4 2.6 

 (a) Revenue from inbound roaming was $25 million and $14 million, respectively. 
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 The details of the changes in C&W Caribbean and Networks’s revenue during 2021, as compared to 2020, are set forth below (in millions): 
 
 Increase (decrease) in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ 20.2 
 ARPU (b) (6.1) 
 Increase in residential fixed non-subscription revenue 1.9 
 Total increase in residential fixed revenue 16.0 
 Increase in residential mobile service revenue (c) 11.7 
 Increase in residential mobile interconnect, inbound roaming, equipment sales and other (d) 11.4 
 Increase in B2B service revenue (e) 20.7 
 Increase in B2B subsea network revenue (f) 5.8 
 Total organic increase 65.6 
 Impact of an acquisition 3.9 
 Impact of FX (25.1) 
 Total $ 44.4 

 
 (a) The increase is primarily attributable to higher average broadband internet RGUs. 
 (b) The decrease is primarily due to the net effect of (i) lower ARPU from video and fixed-line telephony services, and (ii) higher ARPU from broadband internet services. 
 (c) The increase is attributable to (i) higher average number of mobile subscribers, mostly due to an increase in sales initiatives, and (ii) higher ARPU from mobile services, which was mostly a result of relaxed COVID-19-related travel restrictions. 
 (d) The increase is primarily attributable to (i) higher inbound roaming revenue, primarily related to the relaxing of travel restrictions associated with COVID-19, and (ii) an increase related to the settlement during 2021 of a minimum commitment guarantee associated with inbound roaming. 
 (e) The increase is primarily due to (i) higher revenue from fixed and mobile services, partially due to the recovery of reduced or suspended service across our markets as a result of the COVID-19 lockdowns, (ii) higher non-recurring revenue, and (iii) higher wholesale call volumes. 
 (f) The increase is primarily attributable to the net effect of (i) an increase associated with the recognition of deferred revenue and penalties upon termination of two customer contracts, (ii) a decrease related to revenue recognized on a cash basis during 2020 for services provided to a significant customer, and (iii) an increase associated with continued demand for telecommunications capacity on our subsea network. 
 
 
 
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 C&W Panama. C&W Panama’s revenue by major category is set forth below: 
 
 Year ended December 31, Increase (decrease) 
 2021 2020 $ % 
 in millions, except percentages 
 Residential revenue: 
 Residential fixed revenue: 
 Subscription revenue: 
 Video $ 25.9 $ 27.8 $ (1.9) (6.8) 
 Broadband internet 44.9 39.0 5.9 15.1 
 Fixed-line telephony 17.1 18.8 (1.7) (9.0) 
 Total subscription revenue 87.9 85.6 2.3 2.7 
 Non-subscription revenue 9.5 11.8 (2.3) (19.5) 
 Total residential fixed revenue 97.4 97.4 — — 
 Residential mobile revenue: 
 Service revenue 155.9 160.1 (4.2) (2.6) 
 Interconnect, inbound roaming, equipment sales and other (a) 44.5 41.0 3.5 8.5 
 Total residential mobile revenue 200.4 201.1 (0.7) (0.3) 
 Total residential revenue 297.8 298.5 (0.7) (0.2) 
 
 B2B service revenue 249.8 201.7 48.1 23.8 
 Total $ 547.6 $ 500.2 $ 47.4 9.5 

 (a) Revenue from inbound roaming was $4 million and $2 million, respectively. 
 
 The details of the changes in C&W Panama’s revenue during 2021, as compared to 2020, are set forth below (in millions): 
 
 Increase (decrease) in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ 8.9 
 ARPU (b) (6.6) 
 Decrease in residential fixed non-subscription revenue (c) (2.3) 
 Total increase in residential fixed revenue — 
 Decrease in residential mobile service revenue (d) (4.2) 
 Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) 3.5 
 Increase in B2B service revenue (f) 48.1 
 Total organic increase $ 47.4 

 
 (a) The increase is primarily attributable to higher average broadband internet RGUs. 
 (b) The decrease is primarily due to lower ARPU from fixed-line telephony and video services. 
 (c) The decrease is primarily attributable to lower volumes of interconnect revenue and a decrease in payphone revenue. 
 (d) The decrease is primarily due to the net effect of (i) lower ARPU from mobile services, mainly attributable to prepaid plans as a result of the termination of certain value-added services, and (ii) higher average numbers of mobile subscribers. 
 (e) The increase is primarily attributable to (i) higher volumes of handset sales, as COVID-19 related lockdowns in 2020 negatively impacted customers’ ability to purchase handsets, and (ii) an increase in inbound roaming revenue, primarily related to the relaxing of travel restrictions associated with COVID-19. 
 (f) The increase is primarily due to (i) an increase driven by certain government-related projects, some of which were put on hold during 2020 due to the impact of COVID-19, and (ii) higher revenue from mobile services. 
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 Liberty Puerto Rico. Liberty Puerto Rico’s revenue by major category is set forth below: 
 
 Year ended December 31, Increase 
 2021 2020 $ % 
 in millions, except percentages 
 Residential fixed revenue: 
 Subscription revenue: 
 
 Video 
 $ 156.7 $ 147.2 $ 9.5 6.5 
 Broadband internet 
 253.3 204.7 48.6 23.7 
 Fixed-line telephony 
 28.2 25.5 2.7 10.6 
 Total subscription revenue 
 438.2 377.4 60.8 16.1 
 Non-subscription revenue 
 19.3 17.7 1.6 9.0 
 Total residential fixed revenue 
 457.5 395.1 62.4 15.8 
 Residential mobile revenue: 
 Service revenue 486.9 82.9 404.0 487.3 
 Interconnect, inbound roaming, equipment sales and other (a) 254.4 50.6 203.8 402.8 
 Total residential mobile revenue 741.3 133.5 607.8 455.3 
 Total residential revenue 1,198.8 528.6 670.2 126.8 
 B2B service revenue 220.4 89.8 130.6 145.4 
 Other revenue (b) 37.5 5.7 31.8 557.9 
 Total 
 $ 1,456.7 $ 624.1 $ 832.6 133.4 

 (a) Revenue from inbound roaming was $69 million and $11 million, respectively. 
 (b) Amounts relate to funds received from the FCC primarily related to Liberty Mobile following the closing of the AT&T Acquisition. 
 
 The details of the changes in Liberty Puerto Rico’s revenue during 2021, as compared to 2020, are set forth below (in millions): 
 
 Increase in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ 51.4 
 ARPU (b) 9.4 
 Increase in residential fixed non-subscription revenue 1.6 
 Total increase in residential fixed revenue 62.4 
 Decrease in residential mobile service revenue (1.5) 
 Decrease in residential mobile interconnect, inbound roaming, equipment sales and other (c) (3.4) 
 Increase in B2B service 2.2 
 Increase in other revenue (d) 3.5 
 Total organic increase 63.2 
 Impact of an acquisition and a disposition, net 769.4 
 Total $ 832.6 

 
 (a) The increase is primarily attributable to higher average broadband internet and video RGUs. The higher average broadband internet RGUs are partially due to increased demand as a result of COVID-19 work-from-home mandates, which subsequently led to increased purchases of video products as a result of bundling offers. 
 (b) The increase is primarily due to higher ARPU from broadband internet services, and the impact resulting from credits provided to customers during 2020 in connection with the earthquakes that impacted Puerto Rico in January 2020. 
 (c) The decrease is primarily due to lower volumes of handset sales. 
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 (d) The increase is primarily attributable to funds received from the FCC to continue to expand and improve our fixed network in Puerto Rico. 
 
 
 
 
 VTR. VTR’s revenue by major category is set forth below: 
 
 Year ended December 31, Increase (decrease) 
 2021 2020 $ % 
 in millions, except percentages 
 Residential revenue: 
 Residential fixed revenue: 
 Subscription revenue: 
 Video $ 294.4 $ 291.5 $ 2.9 1.0 
 Broadband internet 313.4 331.3 (17.9) (5.4) 
 Fixed-line telephony 77.3 73.5 3.8 5.2 
 Total subscription revenue 685.1 696.3 (11.2) (1.6) 
 Non-subscription revenue 14.9 18.5 (3.6) (19.5) 
 Total residential fixed revenue 700.0 714.8 (14.8) (2.1) 
 Residential mobile revenue: 
 Service revenue 48.0 55.7 (7.7) (13.8) 
 Interconnect, inbound roaming, equipment sales and other 7.3 8.2 (0.9) (11.0) 
 Total residential mobile revenue 55.3 63.9 (8.6) (13.5) 
 Total residential revenue 755.3 778.7 (23.4) (3.0) 
 
 B2B service revenue 32.2 30.3 1.9 6.3 
 Total $ 787.5 $ 809.0 $ (21.5) (2.7) 

 
 The details of the changes in VTR’s revenue during 2021, as compared to 2020, are set forth below (in millions): 
 
 Decrease in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ (21.1) 
 ARPU (b) (19.9) 
 Decrease in residential fixed non-subscription revenue (c) (4.2) 
 Total decrease in residential fixed revenue 
 (45.2) 
 Decrease in residential mobile service revenue (d) (9.9) 
 Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue 
 (1.3) 
 Increase in B2B service revenue 0.6 
 Total organic decrease (55.8) 
 Impact of FX 34.3 
 Total $ (21.5) 

 
 (a) The decrease is primarily attributable to lower average broadband internet and video RGUs. 
 (b) The decrease is primarily due to lower ARPU from broadband internet services and video services, partially the result of continued high levels of competition. The decline in ARPU from video services is partially offset by increases related to live soccer matches being broadcast on our premium programming that were cancelled during 2020. 
 (c) The decrease is primarily due to (i) lower volumes of interconnect revenue, (ii) lower installations, and (iii) lower amounts of infrastructure-related engineering projects with local governments. 
 (d) The decrease is due to lower average numbers of mobile subscribers and lower ARPU from mobile services. 
 
 
 
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 Costa Rica . Costa Rica’s revenue by major category is set forth below: 
 
 Year ended December 31, Increase (decrease) 
 2021 2020 $ % 
 in millions, except percentages 
 Residential revenue: 
 Residential fixed revenue: 
 Subscription revenue: 
 Video $ 74.5 $ 79.1 $ (4.6) (5.8) 
 Broadband internet 59.6 51.4 8.2 16.0 
 Fixed-line telephony 4.4 3.7 0.7 18.9 
 Total subscription revenue 138.5 134.2 4.3 3.2 
 Non-subscription revenue 6.2 5.8 0.4 6.9 
 Total residential fixed revenue 144.7 140.0 4.7 3.4 
 Residential mobile revenue: 
 Service revenue 70.4 — 70.4 N.M. 
 Interconnect, inbound roaming, equipment sales and other (a) 27.1 — 27.1 N.M. 
 Total residential mobile revenue 97.5 — 97.5 N.M. 
 Total residential revenue 242.2 140.0 102.2 73.0 
 
 B2B service revenue 14.0 — 14.0 N.M. 
 Total $ 256.2 $ 140.0 $ 116.2 83.0 

 N.M. - Not Meaningful. 
 (a) Revenue from inbound roaming was $2 million and nil, respectively. 
 
 The details of the changes in Costa Rica’s revenue during 2021, as compared to 2020, are set forth below (in millions): 
 
 Increase in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ 4.7 
 ARPU (b) 7.9 
 Increase in residential fixed non-subscription revenue 0.7 
 Total organic increase 13.3 
 Impact of an acquisition 111.8 
 Impact of FX (8.9) 
 Total $ 116.2 

 
 (a) The increase is primarily attributable to higher average broadband internet RGUs. 
 (b) The increase is primarily due to higher ARPU from broadband internet. 
 
 Programming and other direct costs of services 
 Programming and other direct costs of services include programming and copyright costs, interconnect and access costs, equipment costs, which primarily relate to costs of mobile handsets and other devices, and other direct costs related to our operations. Programming and copyright costs, which represent a significant portion of our operating costs, may increase in future periods as a result of (i) higher costs associated with the expansion of our digital video content, including rights associated with ancillary product offerings and rights that provide for the broadcast of live sporting events, (ii) rate increases or (iii) growth in the number of our video subscribers. 
 II-14 

 
 
 

 Consolidated. The following tables set forth the organic and non-organic changes in programming and other direct costs of services on a consolidated basis. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase Acquisitions (disposition), net Organic 
 2021 2020 FX 
 in millions 
 
 Programming and copyright $ 441.4 $ 389.3 $ 52.1 $ 4.2 $ 10.9 $ 37.0 
 Interconnect 329.8 257.6 72.2 (4.2) 82.6 (6.2) 
 Equipment and other 
 418.8 199.1 219.7 (0.5) 177.3 42.9 
 Total programming and other direct costs of services $ 1,190.0 $ 846.0 $ 344.0 $ (0.5) $ 270.8 $ 73.7 

 
 
 
 
 C&W Caribbean and Networks . The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our C&W Caribbean and Networks segment. 
 
 Year ended December 31, Increase (decrease) Increase (decrease) from: 
 2021 2020 FX An acquisition Organic 
 in millions 
 
 Programming and copyright $ 92.8 $ 88.8 $ 4.0 $ (1.5) $ — $ 5.5 
 Interconnect 151.8 163.0 (11.2) (5.5) — (5.7) 
 Equipment and other 74.4 59.1 15.3 (0.9) 1.8 14.4 
 Total programming and other direct costs of services $ 319.0 $ 310.9 $ 8.1 $ (7.9) $ 1.8 $ 14.2 

 
 • Programming and copyright: The organic increase is primarily due to the negative impact of the reassessment and release of various accruals in certain of our markets during 2020. 
 • Interconnect: The organic decrease is primarily due to individually insignificant decreases that were partially offset by higher wholesale call volumes. 
 • Equipment and other: The organic increase is primarily driven by the easing of COVID-19 related restrictions in certain of our markets, which resulted in (i) higher mobile equipment sales volume, and (ii) higher B2B data revenue and equipment sales. 
 
 
 
 
 C&W Panama. The following table sets forth the organic changes in programming and other direct costs of services for our C&W Panama segment. 
 
 Year ended December 31, Organic increase (decrease) 
 2021 2020 
 in millions 
 
 Programming and copyright $ 14.9 $ 13.9 $ 1.0 
 Interconnect 39.8 41.1 (1.3) 
 Equipment and other 
 111.6 74.0 37.6 
 Total programming and other direct costs of services $ 166.3 $ 129.0 $ 37.3 

 
 • Equipment and other: The organic increase is primarily due to (i) an increase driven by certain nonrecurring government-related projects, some of which were put on hold during 2020 due to the impact of COVID-19, and (ii) higher volumes of mobile handset sales, mainly due to the easing of COVID-19 related restrictions. 
 
 
 
 II-15 

 
 
 

 Liberty Puerto Rico . The following table sets forth the organic changes in programming and other direct costs of services for our Liberty Puerto Rico segment. 
 
 Increase Increase (decrease) from: 
 Year ended December 31, Acquisition (disposition), net 
 2021 2020 Organic 
 in millions 
 
 Programming and copyright $ 109.0 $ 91.9 $ 17.1 $ 10.9 $ 6.2 
 Interconnect 104.3 21.9 82.4 73.1 9.3 
 Equipment and other 
 206.3 50.5 155.8 160.6 (4.8) 
 Total programming and other direct costs of services $ 419.6 $ 164.3 $ 255.3 $ 244.6 $ 10.7 

 
 • Programming and copyright: The organic increase is primarily attributable to higher programming rates and higher average video subscribers. 
 • Interconnect: The organic increase is primarily due to higher roaming costs, including the impact from the renegotiation of a certain roaming agreement during the fourth quarter of 2021. 
 • Equipment and other: The organic decrease is primarily due to the net effect of (i) lower equipment costs and (ii) $1 million of equipment-related integration costs incurred in 2021. 
 
 
 
 
 VTR . The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our VTR segment. 
 
 Year ended December 31, Increase (decrease) Increase (decrease) from: 
 2021 2020 FX Organic 
 in millions 
 
 Programming and copyright $ 188.8 $ 163.2 $ 25.6 $ 7.9 $ 17.7 
 Interconnect 33.9 39.2 (5.3) 1.4 (6.7) 
 Equipment and other 
 11.1 16.5 (5.4) 0.7 (6.1) 
 Total programming and other direct costs of services $ 233.8 $ 218.9 $ 14.9 $ 10.0 $ 4.9 

 
 • Programming and copyright: The organic increase is primarily due to higher premium and basic content rates. During 2020, programming costs were lower due to the renegotiation of a programming contract governing rates for live soccer matches, which were cancelled as a result of COVID-19. In addition, the comparison includes a decrease of $1 million related to the foreign currency impact of programming contracts denominated in U.S. dollars. 
 • Interconnect: The organic decrease is primarily due to (i) lower interconnect rates and volumes, and (ii) a decrease in MVNO charges, as we renegotiated our contract during the second quarter of 2021. 
 • Equipment and other: The organic decrease is due to (i) lower volumes of handset sales, (ii) lower amounts of infrastructure-related engineering projects with local governments, and (iii) the net effect of (a) higher handset prices and (b) decreases associated with the foreign currency impact of handset contracts denominated in U.S. dollars. 
 
 
 
 II-16 

 
 
 

 Costa Rica . The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our Costa Rica segment. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase FX An acquisition Organic 
 2021 2020 
 in millions 
 
 Programming and copyright $ 35.9 $ 31.5 $ 4.4 $ (2.2) $ — $ 6.6 
 Interconnect 15.4 5.8 9.6 (0.3) 9.5 0.4 
 Equipment and other 
 17.4 1.7 15.7 (0.2) 14.9 1.0 
 Total programming and other direct costs of services $ 68.7 $ 39.0 $ 29.7 $ (2.7) $ 24.4 $ 8.0 

 
 • Programming and copyright: The organic increase is primarily due to (i) the negative impact associated with contract negotiations that resulted in the reassessment and release of various accruals during 2020 and (ii) an increase in certain premium content costs. In addition, the comparison includes an increase of $2 million related to the foreign currency impact of programming contracts denominated in U.S. dollars. 
 
 Other operating costs and expenses 
 Other operating costs and expenses set forth in the table below comprise the following cost categories: 
 • Personnel and contract labor-related costs, which primarily include salary-related and cash bonus expenses, net of capitalizable labor costs, and temporary contract labor costs; 
 • Network-related expenses, which primarily include costs related to network access, system power, core network, and CPE repair, maintenance and test costs; 
 • Service-related costs, which primarily include professional services, information technology-related services, audit, legal and other services; 
 • Commercial, which primarily includes sales and marketing costs, such as advertising, commissions and other sales and marketing-related costs, and customer care costs related to outsourced call centers; 
 • Facility, provision, franchise and other, which primarily includes facility-related costs, provision for bad debt expense, franchise-related fees, bank fees, insurance, vehicle-related, travel and entertainment and other operating-related costs; and 
 • Share-based compensation expense that relates to (i) equity awards issued to our employees and Directors and (ii) and with respect to 2021 and 2020, bonus-related expenses that will be paid in the form of equity. 
 II-17 

 
 
 

 Consolidated . The following table sets forth the organic and non-organic changes in other operating costs and expenses on a consolidated basis. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase Acquisition (disposition), net Organic 
 2021 2020 FX 
 in millions 
 
 Personnel and contract labor $ 575.1 $ 483.6 $ 91.5 $ (1.2) $ 77.9 $ 14.8 
 Network-related 318.9 261.4 57.5 0.4 37.4 19.7 
 Service-related 196.5 161.7 34.8 0.8 31.2 2.8 
 Commercial 229.4 168.1 61.3 2.2 43.9 15.2 
 Facility, provision, franchise and other 
 460.1 359.1 101.0 (0.6) 116.9 (15.3) 
 Share-based compensation expense 
 118.1 97.5 20.6 (0.3) 1.1 19.8 
 Total other operating costs and expenses 
 $ 1,898.1 $ 1,531.4 $ 366.7 $ 1.3 $ 308.4 $ 57.0 

 For additional information regarding our share-based compensation, see Results of Operations (below Adjusted OIBDA) discussion and analysis below. 
 
 
 
 
 C&W Caribbean and Networks . The following table sets forth the organic and non-organic changes in other operating costs and expenses for our C&W Caribbean and Networks segment. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase (decrease) Acquisition (disposition), net Organic 
 2021 2020 FX 
 in millions 
 
 Personnel and contract labor $ 251.0 $ 254.2 $ (3.2) $ (2.8) $ 1.3 $ (1.7) 
 Network-related 152.4 140.5 11.9 (2.3) — 14.2 
 Service-related 70.2 70.6 (0.4) (0.5) 0.1 — 
 Commercial 49.8 45.4 4.4 (1.2) — 5.6 
 Facility, provision, franchise and other 161.5 171.9 (10.4) (1.5) — (8.9) 
 Share-based compensation expense 32.8 28.4 4.4 (0.1) 0.9 3.6 
 Total other operating costs and expenses $ 717.7 $ 711.0 $ 6.7 $ (8.4) $ 2.3 $ 12.8 

 
 • Personnel and contract labor: The organic decrease is due to the net effect of (i) lower salaries and other personnel costs, mainly associated with the benefit of certain restructuring activities, (ii) higher staff costs related to increased sales activities, and (iii) lower capitalized labor associated with fewer employees and lower capitalization rates. 
 • Network-related: The organic increase is primarily due to (i) higher subsea cable repairs, (ii) higher utility costs, and (iii) rate increases on pole rentals and fiber leases. 
 • Commercial: The organic increase is primarily due to higher marketing and sales costs, as promotional activities were reduced during 2020 due to certain adverse economic impacts caused by COVID-19. 
 • Facility, provision, franchise and other costs: The organic decrease is primarily due to (i) lower bad debt provisions, as the impact of COVID-19 resulted in higher bad debt expense during 2020 due to (a) delays in collections, (b) higher expected credit losses associated with certain B2B customers and (c) changes in our general expectations related to our customers’ ability to pay, and (ii) lower franchise fees. 
 II-18 

 
 
 

 
 
 
 C&W Panama. The following table sets forth the organic changes in other operating costs and expenses for our C&W Panama segment. 
 
 Year ended December 31, Organic increase (decrease) 
 2021 2020 
 in millions 
 
 Personnel and contract labor $ 69.8 $ 70.9 $ (1.1) 
 Network-related 37.6 39.7 (2.1) 
 Service-related 14.8 13.3 1.5 
 Commercial 19.6 20.5 (0.9) 
 Facility, provision, franchise and other 39.4 49.6 (10.2) 
 Share-based compensation expense 4.0 2.7 1.3 
 Total other operating costs and expenses $ 185.2 $ 196.7 $ (11.5) 

 
 • Facility, provision, franchise and other costs: The organic decrease is primarily due to lower bad debt provisions, as the impact of COVID-19 resulted in higher bad debt expense during 2020 generally due to (i) delays in collections, (ii) higher expected credit losses associated with certain B2B customers and (iii) changes in our general expectations related to our customers’ ability to pay. 
 
 
 
 
 Liberty Puerto Rico . The following table sets forth the organic changes in other operating costs and expenses for our Liberty Puerto Rico segment. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase Acquisition (disposition), net 
 2021 2020 Organic 
 in millions 
 
 Personnel and contract labor $ 142.1 $ 62.1 $ 80.0 $ 71.1 $ 8.9 
 Network-related 40.7 6.7 34.0 31.2 2.8 
 Service-related 41.6 24.9 16.7 24.0 (7.3) 
 Commercial 52.5 19.0 33.5 27.3 6.2 
 Facility, provision, franchise and other 165.4 70.2 95.2 93.4 1.8 
 Share-based compensation expense 6.4 5.1 1.3 0.2 1.1 
 Total other operating costs and expenses $ 448.7 $ 188.0 $ 260.7 $ 247.2 $ 13.5 

 
 • Personnel and contract labor: The organic increase is primarily due to higher salaries and other personnel costs . 
 • Service-related: We incurred service-related integration costs associated with the AT&T Acquisition of $6 million and $7 million during 2021 and 2020, respectively. The service-related integration costs incurred during 2021 are mostly included in the increase from an acquisition (disposition), net, in the above table and are expected to grow in future periods. 
 • Commercial: The organic increase is primarily due to (i) increased marketing costs, including $2 million of rebranding commercial-related integration costs associated with the AT&T Acquisition, and (ii) higher call center volumes, partially attributable to work-from-home and remote learning mandates resulting from COVID-19. In addition, the 2021 increase from an acquisition (disposition), net, in the above table includes $2 million of rebranding commercial-related integration costs associated with the AT&T Acquisition. 
 • Facilities, provision, franchise and other: The organic increase includes an increase related to a payment made during 2021 to settle certain 2011 property tax claims. 
 
 
 
 II-19 

 
 
 

 VTR . The following table sets forth the organic and non-organic changes in other operating costs and expenses for our VTR segment. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase (decrease) FX Organic 
 2021 2020 
 in millions 
 
 Personnel and contract labor $ 61.1 $ 61.1 $ — $ 2.6 $ (2.6) 
 Network-related 78.0 67.2 10.8 3.2 7.6 
 Service-related 37.0 36.4 0.6 1.5 (0.9) 
 Commercial 82.4 76.2 6.2 4.0 2.2 
 Facility, provision, franchise and other 35.6 42.2 (6.6) 1.7 (8.3) 
 Share-based compensation expense 10.9 8.2 2.7 (0.1) 2.8 
 Total other operating costs and expenses $ 305.0 $ 291.3 $ 13.7 $ 12.9 $ 0.8 

 
 • Personnel and contract labor: The organic decrease is primarily due to lower salary expense as a result of a restructuring program implemented during the first half of 2021. 
 • Network-related: The organic increase is primarily due to (i) higher rates associated with network access-related contract labor, and (ii) higher maintenance costs. 
 • Commercial: The organic increase is primarily due to the net effect of (i) higher sales commissions, (ii) a decrease in marketing and advertising expenses, and (iii) higher call center volumes. 
 • Facility, provision, franchise and other costs: The organic decrease is primarily due to (i) lower bad debt provisions, and (ii) lower operating lease expense as a result of ceasing the amortization of our right of use assets in connection with held for sale accounting of the Chile JV Entities, as further described in note 9 to our consolidated financial statements. 
 
 
 
 
 Costa Rica . The following table sets forth the organic and non-organic changes in other operating costs and expenses for our Costa Rica segment. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase FX An acquisition Organic 
 2021 2020 
 in millions 
 
 Personnel and contract labor $ 19.9 $ 15.0 $ 4.9 $ (0.9) $ 5.5 $ 0.3 
 Network-related 14.9 8.6 6.3 (0.5) 6.2 0.6 
 Service-related 11.3 2.0 9.3 (0.2) 7.1 2.4 
 Commercial 25.1 7.0 18.1 (0.6) 16.6 2.1 
 Facility, provision, franchise and other 36.1 13.5 22.6 (0.8) 23.5 (0.1) 
 Share-based compensation expense 1.1 0.7 0.4 (0.1) — 0.5 
 Total other operating costs and expenses $ 108.4 $ 46.8 $ 61.6 $ (3.1) $ 58.9 $ 5.8 

 
 • Service-related: The organic increase is primarily due to higher professional services fees, including $1 million of costs associated with the Telefónica Costa Rica Acquisition, and higher costs associated with certain information technology projects that were put on hold in 2020 due to the economic uncertainty of COVID-19. In addition, during 2021 we incurred $2 million of integration costs associated with the Telefónica Costa Rica Acquisition that are included in the increase from an acquisition. Integration costs are expected to grow significantly during 2022. 
 II-20 

 
 

 • Commercial: The organic increase is primarily due to higher sales commissions, as we began to recover from the adverse economic impacts caused by COVID-19. 
 
 
 
 
 Corporate . The following table sets forth the organic and non-organic changes in other operating costs and expenses for our corporate operations. 
 
 Year ended December 31, Increase (decrease) 
 2021 2020 
 in millions 
 
 Personnel and contract labor $ 31.5 $ 20.3 $ 11.2 
 Network-related — 1.1 (1.1) 
 Service-related 21.3 14.5 6.8 
 Facility, provision, franchise and other 22.1 11.7 10.4 
 Share-based compensation expense 62.9 52.4 10.5 
 Total other operating costs and expenses $ 137.8 $ 100.0 $ 37.8 

 
 • Personnel and contract labor: The organic increase is primarily attributable to higher salaries and other personnel costs, mainly resulting from higher staffing levels in the operations center in Panama. 
 • Service-related: The organic increase is primarily due to an increase in professional services related to centralization efforts. 
 • Facility, provision, franchise and other: The organic increase is primarily attributable to higher expenses associated with a mobile handset insurance program that began during the fourth quarter of 2020 following the closing of the AT&T Acquisition. 
 
 Results of operations (below Adjusted OIBDA)—2021 compared to 2020 
 
 Share-based compensation expense (included in other operating costs and expenses) 
 Share-based compensation expense increased $21 million during 2021, as compared to 2020, primarily due to additional awards granted during 2021 to our employees and Directors. 
 For additional information regarding our share-based compensation, see note 17 to our consolidated financial statements. 
 
 Depreciation and amortization 
 Our depreciation and amortization expense increased $46 million or 5% during 2021, as compared to 2020, primarily due to the net effect of (i) increases attributable to assets acquired by Liberty Puerto Rico and, to a lesser extent, Costa Rica following the closing of the AT&T Acquisition and the Telefónica Costa Rica Acquisition, respectively, (ii) a decrease associated with certain assets becoming fully depreciated, (iii) an increase in property and equipment additions, primarily associated with the installation of CPE, baseline related additions and the expansion and upgrade of our networks and other capital initiatives, and (iv) a decrease at VTR as we ceased recording depreciation expense when we began accounting for the Chile JV Entities as held for sale. 
 II-21 

 
 
 

 Impairment, restructuring and other operating items, net 
 
 Year ended December 31, 
 2021 2020 
 in millions 
 
 Impairment charges (a) $ 609.2 $ 277.7 
 Restructuring charges (b) 33.0 27.5 
 Other operating items, net (c) 22.8 70.1 
 Total $ 665.0 $ 375.3 

 (a) The 2021 amount primarily includes a goodwill impairment associated with our C&W Caribbean and Networks segment. The 2020 amount primarily includes goodwill impairment charges of $174 million at C&W Panama and $101 million at various reporting units within the C&W Caribbean and Networks segment, mostly related to the economic impacts associated with COVID-19. 
 (b) Amounts include employee severance and termination costs related to certain reorganization activities and contract termination and other related charges, primarily at VTR and C&W Caribbean and Networks. 
 (c) The 2021 amount includes direct acquisition costs, primarily related to the Telefónica Costa Rica Acquisition and a gain of $9 million on the disposition of certain B2B operations in our Liberty Puerto Rico segment that was completed in January 2021. The 2020 amounts primarily include direct acquisition costs related to the AT&T Acquisition. 
 
 Interest expense 
 Our interest expense decreased $6 million during 2021, as compared to 2020. The decrease is primarily due to the net effect of (i) lower weighted-average interest rates and (ii) higher average outstanding debt balances. 
 For additional information regarding our outstanding indebtedness, see note 10 to our consolidated financial statements. 
 It is possible that the interest rates on (i) any new borrowings could be higher than the current interest rates on our existing indebtedness and (ii) our variable-rate indebtedness could increase in future periods. As further discussed in note 5 to our consolidated financial statements and under Item 7A. Qualitative and Quantitative Disclosures about Market Risk below, we use derivative instruments to manage our interest rate risks. 
 
 Realized and unrealized gains or losses on derivative instruments, net 
 Our realized and unrealized gains or losses on derivative instruments primarily include (i) unrealized changes in the fair values of our derivative instruments that are non-cash in nature until such time as the derivative contracts are fully or partially settled and (ii) realized gains or losses upon the full or partial settlement of the derivative contracts. The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows: 
 
 Year ended December 31, 
 2021 2020 
 in millions 
 
 Cross-currency and interest rate derivative contracts (a) (b) $ 565.4 $ (328.6) 
 Foreign currency forward contracts 25.8 (7.8) 
 Weather Derivatives (c) (27.1) (16.3) 
 Total $ 564.1 $ (352.7) 

 (a) The gains (losses) during 2021 and 2020 are primarily attributable to the net effect of (i) changes in FX rates, predominantly due to changes in the value of the Chilean peso relative to the U.S. dollar, and (ii) changes in interest rates. These amounts include gains (losses) associated with changes in our credit risk valuation adjustments of ($41 million) and $47 million, respectively, which for 2021 includes a net loss of $30 million related to the Chile JV Entities, and for 2020 was primarily due to increased credit risk stemming from market reaction to the COVID-19 outbreak. 
 II-22 

 
 

 (b) The loss during 2020 includes a realized gain of $71 million associated with the settlement of certain cross-currency swaps at VTR in June 2020 that were unwound in connection with the July 2020 refinancing of certain VTR debt in 2020. For additional information regarding the refinancing, see note 10 to our consolidated financial statements. 
 (c) Amounts represent the amortization of premiums associated with our Weather Derivatives. 
 For additional information concerning our derivative instruments, see notes 5 and 6 to our consolidated financial statements and Item 7A. Qualitative and Quantitative Disclosures about Market Risk below. 
 
 Foreign currency transaction gains or losses, net 
 Our foreign currency transaction gains or losses primarily result from the remeasurement of monetary assets and liabilities that are denominated in currencies other than the underlying functional currency of the applicable entity. Unrealized foreign currency transaction gains or losses are computed based on period-end exchange rates and are non-cash in nature until such time as the amounts are settled. The details of our foreign currency transaction gains (losses), net, are as follows: 
 
 Year ended December 31, 
 2021 2020 
 in millions 
 
 U.S. dollar-denominated debt issued by a Chilean peso functional currency entity 
 $ (249.3) $ 61.7 
 Intercompany payables and receivables denominated in a currency other than the entity’s functional currency 
 (48.4) (53.2) 
 Other (a) (21.9) (7.3) 
 Total $ (319.6) $ 1.2 

 (a) Primarily includes (i) third-party receivables and payables denominated in a currency other than an entity’s functional currency, (ii) cash denominated in a currency other than an entity’s functional currency and (iii) U.S. dollar-denominated debt issued by a CRC functional currency entity. 
 
 Gains or losses on debt modification and extinguishment, net 
 We recognized losses on debt modification and extinguishment, net, of $57 million and $45 million during 2021 and 2020, respectively. The losses during 2021 are associated with (i) the payment of redemption premiums and the write-off of unamortized deferred financing costs related to the repayment of certain C&W Notes, (ii) the write-off of unamortized discounts and deferred financing costs related to the repayment of the 2026 SPV Credit Facility, (iii) the payment of breakage fees and the write-off of unamortized deferred financing costs related to the repayments of the VTR TLB-1 Facility and VTR TLB-2 Facility, (iv) the payment of redemption premiums and the write-off of unamortized deferred financing costs related to the repayment of the 2027 LPR Senior Secured Notes and (v) the payments of redemption premiums and the write-offs of unamortized deferred financing costs related to partial redemptions of the 2028 VTR Senior Secured Notes. The losses during 2020 are associated with (i) the payment of call premiums and the write-off of unamortized deferred financing costs related to the repayment of certain senior notes then outstanding at VTR and (ii) the write-off of unamortized discounts and deferred financing costs associated with the repayment of the C&W Term Loan B-4 Facility. 
 For additional information concerning our losses on debt modification and extinguishment, see note 10 to our consolidated financial statements. 
 
 Other income or expense, net 
 Our other income (expense), net, generally includes (i) certain amounts associated with our defined benefit plans, including interest expense and expected return on plan assets, and (ii) interest income on cash, cash equivalents and restricted cash. 
 We recognized other income (expense), net, of ($42 million) and $5 million during 2021 and 2020, respectively. The expense during 2021 primarily relates to an impairment associated with a cost method investment. The 2020 period reflects the net effect of (i) interest income, including interest we generated on restricted cash held in escrow in advance of the closing of the AT&T Acquisition, and (ii) other individually insignificant expenses. 
 II-23 

 
 
 

 Income tax benefit or expense 
 Liberty Latin America was formed as a corporation in Bermuda and, therefore, the “statutory” or “expected” tax rate for the 2021 and 2020 tax years is 0%, as we are exempt from income taxes on ordinary income and capital gains. However, a majority of our subsidiaries operate in jurisdictions where income tax is imposed at local applicable statutory rates. For additional information, see note 15 to our consolidated financial statements. 
 We recognized income tax benefit (expense) of ($190 million) and $28 million during 2021 and 2020, respectively. 
 The income tax expense attributable to our earnings before income taxes during 2021 differs from the amounts computed using the statutory tax rate, primarily due to detrimental effects of (i) net increases in valuation allowances, (ii) permanent tax differences, such as non deductible goodwill impairment and other non-deductible expenses, (iii) expiration of deferred tax assets (which are entirely offset by valuation allowance); and (iv) inclusion of withholding taxes on cross-border payments. These negative impacts to our effective tax rate were partially offset by the beneficial effects of (i) jurisdictional rate differences, (ii) changes in enacted tax rates (but which are nearly entirely offset by valuation allowance), and (iii) permanent tax differences, such as non-taxable income. 
 The income tax benefit attributable to our loss before income taxes during 2020 differs from the amounts computed using the statutory tax rate (based on the Bermuda statutory tax rate of 0%), primarily due to the beneficial effects of (i) international rate differences, (ii) changes in enacted tax laws (but which are nearly entirely offset by valuation allowance), and (iii) net favorable changes in uncertain tax positions. These beneficial impacts to our effective tax rate were partially offset by the negative effects of (i) increases in valuation allowances, (ii) permanent items, such as non-deductible goodwill impairment and other non-deductible expenses, and (iii) the inclusion of withholding taxes on cross-border payments. 
 
 Net earnings or loss 
 The following table sets forth selected summary financial information of our net loss: 
 
 Year ended December 31, 
 2021 2020 
 in millions 
 
 Operating income $ 81.2 $ 93.2 
 Net non-operating expenses $ (381.8) $ (924.9) 
 Income tax benefit (expense) $ (189.5) $ 27.8 
 Net loss $ (490.1) $ (803.9) 

 Gains or losses associated with (i) changes in the fair values of derivative instruments and (ii) movements in foreign currency exchange rates are subject to a high degree of volatility and, as such, any gains from these sources do not represent a reliable source of income. In the absence of significant gains in the future from these sources or from other non-operating items, our ability to achieve earnings is largely dependent on our ability to increase our aggregate Adjusted OIBDA to a level that more than offsets the aggregate amount of our (i) share-based compensation expense, (ii) depreciation and amortization, (iii) impairment, restructuring and other operating items, (iv) interest expense, (v) other non-operating expenses and (vi) income tax expenses. 
 Due largely to the fact that we seek to maintain our debt at levels that provide for attractive equity returns, as discussed under Liquidity and Capital Resources—Capitalization below, we expect that we will continue to report significant levels of interest expense for the foreseeable future. 
 
 Net earnings or loss attributable to noncontrolling interests 
 We reported net losses attributable to noncontrolling interests of $50 million and $122 million during 2021 and 2020, respectively. 
 
 
 
 
 
 
 II-24 

 
 
 

 Year Ended December 31, 2020 as Compared with Year Ended December 31, 2019 
 Consolidated Adjusted OIBDA 
 As further described above, consolidated Adjusted OIBDA is a non-U.S. GAAP measure. A reconciliation of total operating income (loss), the nearest U.S. GAAP measure, to Adjusted OIBDA on a consolidated basis, is presented below. 
 
 Year ended December 31, 
 2020 2019 
 in millions 
 
 Operating income $ 93.2 $ 325.8 
 Share-based compensation expense 97.5 57.5 
 Depreciation and amortization 918.7 889.9 
 Impairment, restructuring and other operating items, net 375.3 268.2 
 Consolidated Adjusted OIBDA $ 1,484.7 $ 1,541.4 

 
 The following table sets forth organic and non-organic changes in Adjusted OIBDA for the period indicated. 
 
 C&W Caribbean and Networks C&W Panama Liberty Puerto Rico VTR Costa Rica Corporate Intersegment eliminations Consolidated 
 in millions 
 Adjusted OIBDA for the twelve months ending: 
 
 December 31, 2019 $ 732.1 $ 227.6 $ 203.2 $ 381.7 $ 51.9 $ (55.1) $ — $ 1,541.4 
 Organic changes related to: 
 Revenue (58.2) (82.5) 37.8 (28.6) 7.1 2.7 (3.8) (125.5) 
 Programming and other direct costs 27.2 28.7 (6.1) 1.5 (1.5) — 3.3 53.1 
 Other operating costs and expenses 30.3 3.4 (14.0) (7.9) (2.6) 7.9 0.5 17.6 
 Non-organic increases (decreases): 
 FX (11.8) — — (39.7) — — — (51.5) 
 Acquisitions/disposition, net (6.4) — 56.0 — — — — 49.6 
 December 31, 2020 $ 713.2 $ 177.2 $ 276.9 $ 307.0 $ 54.9 $ (44.5) $ — $ 1,484.7 

 II-25 

 
 
 

 Adjusted OIBDA Margin 
 The following table sets forth the Adjusted OIBDA margins of each of our reportable segments. 
 
 Year ended December 31, 
 2020 2019 
 % 
 
 C&W Caribbean and Networks 41.8 40.4 
 C&W Panama 35.4 39.1 
 Liberty Puerto Rico 44.4 49.3 
 VTR 37.9 40.6 
 Costa Rica 39.2 39.1 

 Adjusted OIBDA margin is impacted by organic changes in revenue, programming and other direct costs of services and other operating costs and expenses, as further discussed below, which include the impacts relating to COVID-19. The organic change in Adjusted OIBDA for the VTR segment, was negatively impacted by $21 million from foreign currency impact of contracts denominated in U.S. dollars during the year ended December 31, 2020, of which $15 million related to programming and the remaining in various other cost categories. The significant decrease in the Adjusted OIBDA margin for Liberty Puerto Rico is primarily related to lower Adjusted OIBDA margins associated with the new mobile operations following the closing of the AT&T Acquisition. 
 
 
 
 
 Revenue 
 The following table sets forth the changes in revenue by reportable segment. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase (decrease) FX Acquisitions (disposition), net Organic 
 2020 2019 
 in millions 
 
 C&W Caribbean and Networks $ 1,706.8 $ 1,812.8 $ (106.0) $ (33.7) $ (14.1) $ (58.2) 
 C&W Panama 500.2 582.7 (82.5) — — (82.5) 
 Liberty Puerto Rico 624.1 412.1 212.0 — 174.2 37.8 
 VTR 809.0 941.1 (132.1) (103.5) — (28.6) 
 Costa Rica 140.0 132.7 7.3 0.2 — 7.1 
 Corporate (a) 2.7 — 2.7 — — 2.7 
 Intersegment eliminations (18.2) (14.4) (3.8) — — (3.8) 
 Total $ 3,764.6 $ 3,867.0 $ (102.4) $ (137.0) $ 160.1 $ (125.5) 

 (a) Amounts relate to services we provide for mobile handset insurance following the closing of the AT&T Acquisition. 
 
 
 
 II-26 

 
 
 

 C&W Caribbean and Networks. C&W Caribbean and Networks’s revenue by major category is set forth below. 
 
 Year ended December 31, Increase (decrease) 
 2020 2019 $ % 
 in millions, except percentages 
 Residential revenue: 
 Residential fixed revenue: 
 Subscription revenue: 
 Video $ 142.4 $ 150.1 $ (7.7) (5) 
 Broadband internet 250.0 225.1 24.9 11 
 Fixed-line telephony 74.6 79.5 (4.9) (6) 
 Total subscription revenue 467.0 454.7 12.3 3 
 Non-subscription revenue 42.2 47.5 (5.3) (11) 
 Total residential fixed revenue 509.2 502.2 7.0 1 
 Residential mobile revenue: 
 Service revenue 294.1 339.1 (45.0) (13) 
 Interconnect, inbound roaming, equipment sales and other (a) 44.4 65.3 (20.9) (32) 
 Total residential mobile revenue 338.5 404.4 (65.9) (16) 
 Total residential revenue 847.7 906.6 (58.9) (6) 
 B2B revenue: 
 Service revenue 600.4 659.3 (58.9) (9) 
 Subsea network revenue 258.7 246.9 11.8 5 
 Total B2B revenue 859.1 906.2 (47.1) (5) 
 Total $ 1,706.8 $ 1,812.8 $ (106.0) (6) 

 (a) Revenue from inbound roaming was $14 million and $34 million, respectively. 
 
 The details of the changes in C&W Caribbean and Networks’s revenue during 2020, as compared to 2019, are set forth below (in millions). 
 
 Increase (decrease) in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ 27.7 
 ARPU (b) (10.9) 
 Decrease in residential fixed non-subscription revenue (c) (3.4) 
 Total increase in residential fixed revenue 13.4 
 Decrease in residential mobile service revenue (d) (29.2) 
 Decrease in residential mobile interconnect, inbound roaming, equipment sales and other (e) (20.9) 
 Decrease in B2B service revenue (f) (38.0) 
 Increase in B2B subsea network revenue (g) 16.5 
 Total organic decrease (58.2) 
 Net impact of an acquisition and a disposal (14.1) 
 Impact of FX (33.7) 
 Total $ (106.0) 

 
 (a) The increase is attributable to higher average broadband internet and video RGUs. The increase in broadband internet RGUs is partially attributable to an increase in telecommuting during COVID-19 due to work-from-home mandates. 
 (b) The decrease is primarily due to the net effect of (i) lower ARPU from video and fixed-line telephony services and (ii) higher ARPU from broadband internet services. 
 (c) The decrease is primarily attributable to lower volumes of interconnect revenue across our markets. 
 II-27 

 
 

 (d) The decrease is primarily attributable to (i) lower ARPU from mobile services, as COVID-19 lockdowns and travel restrictions reduced (a) demand for mobile data services and (b) outbound roaming activity, and (ii) lower average prepaid mobile subscribers, primarily due to declines in the Bahamas, as a result of COVID-19 impacts. 
 (e) The decrease is primarily attributable to an organic decrease of $18 million in inbound roaming fees, primarily related to travel restrictions associated with COVID-19. 
 (f) The decrease is primarily due to (i) lower revenues from mobile and fixed services partially due to discounts and credits related to reduced or suspended service across our markets as a result of the COVID-19 lockdowns and (ii) lower wholesale interconnect revenues. 
 (g) The increase is primarily attributable to (i) an increase associated with revenue recognized on a cash basis for services provided to a significant customer and (ii) an increase in the demand for telecommunications capacity on our subsea network during COVID-19. 
 
 
 
 
 C&W Panama. C&W Panama’s revenue by major category is set forth below. 
 
 Year ended December 31, Increase (decrease) 
 2020 2019 $ % 
 in millions, except percentages 
 Residential revenue: 
 Residential fixed revenue: 
 Subscription revenue: 
 Video $ 27.8 $ 31.0 $ (3.2) (10) 
 Broadband internet 39.0 34.9 4.1 12 
 Fixed-line telephony 18.8 22.4 (3.6) (16) 
 Total subscription revenue 85.6 88.3 (2.7) (3) 
 Non-subscription revenue 11.8 14.5 (2.7) (19) 
 Total residential fixed revenue 97.4 102.8 (5.4) (5) 
 Residential mobile revenue: 
 Service revenue 160.1 183.8 (23.7) (13) 
 Interconnect, inbound roaming, equipment sales and other (a) 41.0 56.8 (15.8) (28) 
 Total residential mobile revenue 201.1 240.6 (39.5) (16) 
 Total residential revenue 298.5 343.4 (44.9) (13) 
 
 B2B service revenue 201.7 239.3 (37.6) (16) 
 Total $ 500.2 $ 582.7 $ (82.5) (14) 

 (a) Revenue from inbound roaming was $2 million and $3 million, respectively. 
 
 The details of the changes in C&W Panama’s revenue during 2020, as compared to 2019, are set forth below (in millions). 
 
 Increase (decrease) in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ 8.4 
 ARPU (b) (11.1) 
 Decrease in residential fixed non-subscription revenue (c) (2.7) 
 Total decrease in residential fixed revenue (5.4) 
 Decrease in residential mobile service revenue (d) (23.7) 
 Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) (15.8) 
 Decrease in B2B service revenue (f) (37.6) 
 Total organic decrease $ (82.5) 

 II-28 

 
 

 
 
 
 (a) The increase is primarily attributable to higher average broadband internet RGUs, partially attributable to an increase in telecommuting during COVID-19 due to work-from-home mandates. 
 (b) The decrease is primarily due to lower ARPU from fixed-line telephony and video services. 
 (c) The decrease is primarily attributable to (i) a decrease in payphone revenue and (ii) lower interconnect volumes. 
 (d) The decrease is primarily attributable to (i) lower ARPU from mobile services , as COVID-19 lockdowns and travel restrictions negatively impacted customers’ ability to recharge handset devices, and (ii) lower average mobile subscribers, primarily resulting from the impacts of COVID-19 and competition. 
 (e) The decrease is primarily attributable to (i) lower volumes of handset sales, as COVID-19 related lockdowns negatively impacted customers’ ability to purchase handsets and (ii) lower interconnect volumes. 
 (f) The decrease is primarily due to (i) lower revenues from managed services, primarily driven by certain non-recurring projects that have been put on hold due to the economic uncertainty of the impact of COVID-19, (ii) lower revenues from mobile and fixed services partially due to discounts and credits related to reduced or suspended service as a result of the COVID-19 lockdowns. 
 
 
 
 
 Liberty Puerto Rico. Liberty Puerto Rico’s revenue by major category is set forth below. 
 
 Year ended December 31, Increase (decrease) 
 2020 2019 $ % 
 in millions, except percentages 
 Residential fixed revenue: 
 Subscription revenue: 
 Video $ 147.2 $ 140.9 $ 6.3 4 
 Broadband internet 204.7 175.0 29.7 17 
 Fixed-line telephony 25.5 23.4 2.1 9 
 Total subscription revenue 377.4 339.3 38.1 11 
 Non-subscription revenue 17.7 21.7 (4.0) (18) 
 Total residential fixed revenue 395.1 361.0 34.1 9 
 Residential mobile revenue: 
 Service revenue 82.9 — 82.9 N.M. 
 Interconnect, inbound roaming, equipment sales and other (a) 50.6 — 50.6 N.M. 
 Total residential mobile revenue 133.5 — 133.5 N.M. 
 Total residential revenue 528.6 361.0 167.6 46 
 B2B service revenue 89.8 51.1 38.7 76 
 Other revenue (b) 5.7 — 5.7 N.M. 
 Total $ 624.1 $ 412.1 $ 212.0 51 

 N.M. — Not Meaningful. 
 (a) Revenue from inbound roaming was $11 million in 2020. 
 (b) Amount relates to funds received from the FCC related to Liberty Mobile following the closing of the AT&T Acquisition. 
 
 
 II-29 

 
 
 

 The details of the changes in Liberty Puerto Rico’s revenue during the year ended December 31, 2020, as compared to 2019, are set forth below (in millions). 
 
 Increase in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ 33.2 
 ARPU (b) 4.9 
 Decrease in residential fixed non-subscription revenue (c) (4.0) 
 Total increase in residential fixed revenue 
 34.1 
 Increase in B2B service (d) 
 3.7 
 Total organic increase 37.8 
 Impact of an acquisition 174.2 
 Total $ 212.0 

 
 (a) The increase is primarily attributable to higher average broadband internet RGUs, as we experienced increased demand due in part to the impact of COVID-19 work-from-home mandates. 
 (b) The increase is primarily attributable to the net effect of (i) higher ARPU from broadband internet and video services and (ii) a decrease resulting from credits issued to customers in connection with the earthquakes that impacted Puerto Rico in January 2020. 
 (c) The decrease is primarily due to reconnect and late fee revenues, as such fees were generally waived during the second and third quarters in response to impacts of COVID-19. 
 (d) The increase primarily relates to the transfer of certain B2B operations in Puerto Rico from our C&W Caribbean and Networks segment to our Liberty Puerto Rico segment. 
 
 
 
 
 VTR . VTR’s revenue by major category is set forth below. 
 
 Year ended December 31, Increase (decrease) 
 2020 2019 $ % 
 in millions, except percentages 
 Residential revenue: 
 Residential fixed revenue: 
 Subscription revenue: 
 Video $ 291.5 $ 346.4 $ (54.9) (16) 
 Broadband internet 331.3 366.7 (35.4) (10) 
 Fixed-line telephony 73.5 98.2 (24.7) (25) 
 Total subscription revenue 696.3 811.3 (115.0) (14) 
 Non-subscription revenue 18.5 25.1 (6.6) (26) 
 Total residential fixed revenue 714.8 836.4 (121.6) (15) 
 Residential mobile revenue: 
 Service revenue 55.7 62.7 (7.0) (11) 
 Interconnect, inbound roaming, equipment sales and other 8.2 12.0 (3.8) (32) 
 Total residential mobile revenue 63.9 74.7 (10.8) (14) 
 Total residential revenue 778.7 911.1 (132.4) (15) 
 
 B2B service revenue 30.3 30.0 0.3 1 
 Total $ 809.0 $ 941.1 $ (132.1) (14) 

 II-30 

 
 
 

 The details of the changes in VTR’s revenue during 2020, as compared to 2019, are set forth below (in millions). 
 
 Decrease in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ (4.4) 
 ARPU (b) (21.7) 
 Decrease in residential fixed non-subscription revenue (c) (4.2) 
 Total decrease in residential fixed revenue (30.3) 
 Increase in residential mobile service revenue (d) 0.3 
 Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) (2.8) 
 Increase in B2B service revenue (f) 4.2 
 Total organic decrease (28.6) 
 Impact of FX (103.5) 
 Total $ (132.1) 

 
 (a) The increase is primarily attributable to the net effect of (i) higher average broadband internet RGUs, partially attributable to an increase in telecommuting during COVID-19 due to work-from-home mandates, and (ii) lower average fixed-line telephony RGUs at VTR. 
 (b) The decrease is primarily due to lower ARPU from (i) video, primarily attributable to declines associated with the cancellation of live soccer matches broadcast on our premium programming, and (ii) fixed-line telephony. 
 (c) The decrease is primarily attributable to lower activations and installations as a result of COVID-19. 
 (d) The increase is due to the net effect of (i) higher average numbers of mobile subscribers and (ii) lower ARPU from mobile services. 
 (e) The decrease is primarily attributable to declines in (i) interconnect revenue due to decreased rates, partially offset by higher traffic, and (ii) handset sales due to the temporary closure of physical stores, as a result of COVID-19-related lockdowns. 
 (f) The increase is largely attributable to higher broadband internet and fixed-line telephony services. 
 
 
 
 
 Costa Rica. Costa Rica’s revenue by major category is set forth below. 
 
 Year ended December 31, Increase (decrease) 
 2020 2019 $ % 
 in millions, except percentages 
 Residential revenue: 
 Residential fixed revenue: 
 Subscription revenue: 
 Video $ 79.1 $ 75.7 $ 3.4 4 
 Broadband internet 51.4 45.3 6.1 13 
 Fixed-line telephony 3.7 2.5 1.2 48 
 Total subscription revenue 134.2 123.5 10.7 9 
 Non-subscription revenue 5.8 9.2 (3.4) (37) 
 Total $ 140.0 $ 132.7 $ 7.3 6 
 
 
 
 
 
 
 
 

 II-31 

 
 
 

 The details of the changes in Costa Rica’s revenue during 2020, as compared to 2019, are set forth below (in millions): 
 
 Increase in residential fixed subscription revenue due to change in: 
 Average number of RGUs (a) $ 9.9 
 ARPU (b) 0.6 
 Decrease in residential fixed non-subscription revenue (c) (3.4) 
 Total organic increase 7.1 
 
 
 
 
 
 Impact of FX 0.2 
 Total $ 7.3 

 
 (a) The increase is primarily attributable to higher average (i) broadband internet RGUs, partially attributable to an increase in telecommuting during COVID-19 due to work-from-home mandates, and (ii) video RGUs. 
 (b) The increase is due to higher ARPU from video services. 
 (c) The decrease is primarily attributable to lower equipment sales. 
 
 
 
 
 Programming and other direct costs of services 
 The following table sets forth the changes in programming and other direct costs of services on a consolidated basis. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase (decrease) Acquisition (disposition), net Organic 
 2020 2019 FX 
 in millions 
 
 Programming and copyright $ 389.3 $ 404.8 $ (15.5) $ (21.5) $ (0.9) $ 6.9 
 Interconnect 257.6 280.0 (22.4) (12.2) 11.1 (21.3) 
 Equipment and other 199.1 193.0 6.1 (2.8) 47.6 (38.7) 
 Total programming and other direct costs of services $ 846.0 $ 877.8 $ (31.8) $ (36.5) $ 57.8 $ (53.1) 

 
 
 
 
 C&W Caribbean and Networks. The following table sets forth the changes in programming and other direct costs of services for our C&W Caribbean and Networks segment. 
 
 Decrease from: 
 Year ended December 31, Decrease FX Acquisition (disposition), net Organic 
 2020 2019 
 in millions 
 
 Programming and copyright $ 88.8 $ 105.3 $ (16.5) $ (1.3) $ (2.8) $ (12.4) 
 Interconnect 163.0 174.4 (11.4) (6.8) (2.6) (2.0) 
 Equipment and other 59.1 75.0 (15.9) (0.9) (2.2) (12.8) 
 Total programming and other direct costs of services $ 310.9 $ 354.7 $ (43.8) $ (9.0) $ (7.6) $ (27.2) 

 
 • Programming and copyright: The organic decrease is primarily due to the net effect of (i) lower sports content costs and (ii) the net negative impact resulting from the reassessment and release of various accruals in certain of our markets during 2020 and 2019. 
 • Interconnect and commissions: The organic decrease is primarily due to the net effect of (i) lower wholesale call volumes and (ii) the negative impact resulting from the reassessment of an accrual during 2019. 
 II-32 

 
 

 • Equipment and other: The organic decrease is primarily due to lower volume of mobile handset sales. 
 
 
 
 
 C&W Panama. The following table sets forth the changes in programming and other direct costs of services for our C&W Panama segment. 
 
 Year ended December 31, Organic decrease 
 2020 2019 
 in millions 
 
 Programming and copyright $ 13.9 $ 14.6 $ (0.7) 
 Interconnect 41.1 52.0 (10.9) 
 Equipment and other 74.0 91.1 (17.1) 
 Total programming and other direct costs of services $ 129.0 $ 157.7 $ (28.7) 

 
 • Interconnect and commissions: The organic decrease is primarily due to lower wholesale call volumes. 
 • Equipment and other: The organic decrease is primarily due to (i) lower volume of mobile handset sales and (ii) a decrease driven by certain non-recurring projects that have been put on hold due to the economic uncertainty of the impact of COVID-19. 
 
 
 
 
 Liberty Puerto Rico. The following table sets forth the changes in programming and other direct costs of services for our Liberty Puerto Rico segment. 
 
 Increase from: 
 Year ended December 31, 
 2020 2019 Increase Acquisition Organic 
 in millions 
 
 Programming and copyright $ 91.9 $ 85.0 $ 6.9 $ 1.9 $ 5.0 
 Interconnect 21.9 7.5 14.4 13.7 0.7 
 Equipment and other 50.5 0.3 50.2 49.8 0.4 
 Total programming and other direct costs of services $ 164.3 $ 92.8 $ 71.5 $ 65.4 $ 6.1 

 
 • Programming and copyright: The organic increase is primarily due to (i) a higher average number of video subscribers, (ii) an accrual recorded in the second quarter of 2020 related to an audit of programming services provided in 2018 and 2019 and (iii) higher programming rates. 
 • Interconnect and commissions: The organic increase is primarily due to the transfer of certain B2B operations in Puerto Rico from our C&W Caribbean and Networks segment to our Liberty Puerto Rico segment during the first quarter of 2019. 
 
 
 
 
 VTR. The following table sets forth the changes in programming and other direct costs of services for our VTR segment. 
 
 Year ended December 31, Decrease Increase (decrease) from: 
 2020 2019 FX Organic 
 in millions 
 
 Programming and copyright $ 163.2 $ 170.9 $ (7.7) $ (20.3) $ 12.6 
 Interconnect 39.2 52.3 (13.1) (5.4) (7.7) 
 Equipment and other 16.5 24.8 (8.3) (1.9) (6.4) 
 Total programming and other direct costs of services $ 218.9 $ 248.0 $ (29.1) $ (27.6) $ (1.5) 

 II-33 

 
 
 

 • Programming and copyright: The organic increase is primarily due to the net effect of (i) an increase of $15 million in the foreign currency impact of programming contracts denominated in U.S. dollars, and (ii) a net decrease in certain premium and basic content costs, primarily due to (a) a decline associated with the renegotiation of a programming contract that governs content rates for live soccer matches that were cancelled, (b) an increase in rates in other premium and basic content cost and (c) lower subscribers of other premium and basic content. 
 • Interconnect and commissions: The organic decrease is primarily due to lower rates that were partially offset by higher volumes. 
 • Equipment and other: The organic decrease is primarily due to the net effect of (i) lower volumes of equipment sales as a result of changes in market dynamics and customer usage due to COVID-19-related restrictions and (ii) an increase of $3 million in the foreign currency impact on costs of handsets sales. 
 
 
 
 
 Costa Rica. The following table sets forth the changes in programming and other direct costs of services for our Costa Rica segment. 
 
 Year ended December 31, Increase (decrease) Increase (decrease) from: 
 2020 2019 FX Organic 
 in millions 
 
 Programming and copyright $ 31.5 $ 29.0 $ 2.5 $ 0.1 $ 2.4 
 Interconnect 5.8 5.1 0.7 — 0.7 
 Equipment and other 1.7 3.3 (1.6) — (1.6) 
 Total programming and other direct costs of services $ 39.0 $ 37.4 $ 1.6 $ 0.1 $ 1.5 

 
 • Programming and copyright: The organic increase is primarily due to higher sports content costs and higher subscribers of other premium and basic content. 
 • Equipment and other: The organic decrease is primarily due to lower equipment sales. 
 
 
 
 
 Other operating costs and expenses 
 The following table sets forth the changes in other operating costs and expenses on a consolidated basis. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase (decrease) Acquisition (disposition), net Organic 
 2020 2019 FX 
 in millions 
 
 Personnel and contract labor $ 483.6 $ 500.4 $ (16.8) $ (13.0) $ 14.1 $ (17.9) 
 Network-related 261.4 264.4 (3.0) (11.4) 1.1 7.3 
 Service-related 161.7 149.9 11.8 (5.0) 9.7 7.1 
 Commercial 168.1 172.6 (4.5) (11.2) 5.4 1.3 
 Facility, provision, franchise and other 359.1 360.5 (1.4) (8.4) 22.4 (15.4) 
 Share-based compensation expense 97.5 57.5 40.0 (1.0) 0.8 40.2 
 Total other operating costs and expenses $ 1,531.4 $ 1,505.3 $ 26.1 $ (50.0) $ 53.5 $ 22.6 

 
 
 
 II-34 

 
 
 

 C&W Caribbean and Networks. The following table sets forth the changes in other operating costs and expenses for our C&W Caribbean and Networks segment. 
 
 Increase (decrease) from: 
 Year ended December 31, Increase (decrease) Acquisition (disposition), net Organic 
 2020 2019 FX 
 in millions 
 
 Personnel and contract labor $ 254.2 $ 270.6 $ (16.4) $ (5.1) $ 0.6 $ (11.9) 
 Network-related 140.5 147.3 (6.8) (3.2) (1.4) (2.2) 
 Service-related 70.6 70.6 — (0.6) 1.8 (1.2) 
 Commercial 45.4 57.4 (12.0) (1.2) (0.3) (10.5) 
 Facility, provision, franchise and other 171.9 180.0 (8.1) (2.8) (0.8) (4.5) 
 Share-based compensation expense 28.4 16.5 11.9 (0.1) 0.8 11.2 
 Total other operating costs and expenses $ 711.0 $ 742.4 $ (31.4) $ (13.0) $ 0.7 $ (19.1) 

 
 • Personnel and contract labor: The organic decrease is primarily due to the net effect of (i) lower salaries and other personnel costs, primarily associated with the benefit of certain ongoing restructuring activities, (ii) estimated bonus-related expenses that have been recognized as share-based compensation expense, as certain 2020 bonuses were paid in the form of equity, as further discussed below under S hare-based compensation expense , and (iii) lower capitalized labor costs due to the curtailment of certain projects as a result of the impact of COVID-19. 
 • Commercial: The organic decrease is primarily due to lower marketing and sales costs, largely due to reductions in promotional and sponsorship costs, as a result of certain adverse economic impacts caused by the COVID-19 pandemic across our markets. 
 • Facility, provision, franchise and other costs: The organic decrease is primarily due to the net effect of: 
 ◦ lower (i) travel and entertainment costs and (ii) office-related expenses due to the curtailment of such costs as a result of the impact of COVID-19; 
 ◦ an increase due to the negative impact of a decline in 2019 associated with withholding taxes on third-party supplier services, primarily related to the expiration of statute of limitations; 
 ◦ lower insurance costs due in part to our Weather Derivative, as further described below and in notes 3 and 5 to our consolidated financial statements; and 
 ◦ bad debt expense, which remained relatively unchanged, as (i) higher bad debt provisions due to the impacts of COVID-19, which during 2020 generally resulted in (a) delays in collections, (b) higher expected credit losses associated with certain B2B customers and (c) changes in our general expectations related to our customers’ ability to pay, were offset by (ii) the beneficial impacts of (a) a provision in 2019 related to certain B2B customers and (b) a provision in 2019 related to the impact of Hurricane Dorian. 
 
 
 
 II-35 

 
 
 

 C&W Panama. The following table sets forth the changes in other operating costs and expenses for our C&W Panama segment. 
 
 Year ended December 31, Organic increase (decrease) 
 2020 2019 
 in millions 
 
 Personnel and contract labor $ 70.9 $ 70.2 $ 0.7 
 Network-related 39.7 43.0 (3.3) 
 Service-related 13.3 15.8 (2.5) 
 Commercial 20.5 22.0 (1.5) 
 Facility, provision, franchise and other 49.6 46.4 3.2 
 Share-based compensation expense 2.7 0.9 1.8 
 Total other operating costs and expenses $ 196.7 $ 198.3 $ (1.6) 

 
 • Personnel and contract labor: The organic increase is net of the impact of estimated bonus-related expense that has been recognized as share-based compensation expense, as certain 2020 bonuses were paid in the form of equity, as further discussed below under S hare-based compensation expense. 
 • Facility, provision, franchise and other costs: The organic increase is primarily due to the net effect of (i) higher bad debt provisions during 2020, as the impacts of COVID-19 have generally resulted in (a) delays in collections, (b) higher expected credit losses associated with certain B2B customers and (c) changes in our general expectations related to our customers’ ability to pay, and (ii) the beneficial impact of an increase to the bad debt provision during 2019, primarily related to certain government customers. 
 
 
 
 
 Liberty Puerto Rico. The following table sets forth the changes in other operating costs and expenses for our Liberty Puerto Rico segment. 
 
 Year ended December 31, Increase (decrease) from: 
 2020 2019 Increase Acquisition Organic 
 in millions 
 
 Personnel and contract labor $ 62.1 $ 39.5 $ 22.6 $ 13.5 $ 9.1 
 Network-related 6.7 4.5 2.2 2.5 (0.3) 
 Service-related 24.9 10.6 14.3 7.9 6.4 
 Commercial 19.0 10.9 8.1 5.7 2.4 
 Facility, provision, franchise and other 70.2 50.6 19.6 23.2 (3.6) 
 Share-based compensation expense 5.1 2.2 2.9 — 2.9 
 Total other operating costs and expenses $ 188.0 $ 118.3 $ 69.7 $ 52.8 $ 16.9 

 
 • Personnel and contract labor: The organic increase is primarily due to the net effect of (i) annual salary increases, (ii) higher sales commissions and (iii) estimated bonus-related expense that has been recognized as share-based compensation expense, as certain 2020 bonuses were paid in the form of equity, as further discussed below under Share-based compensation expense. 
 • Service-related: The organic increase is primarily due to integration costs of $6 million associated with the AT&T Acquisition. 
 • Facility, provision, franchise and other: The organic decrease is primarily due to lower bad debt expense driven by improved collections. 
 
 
 
 II-36 

 
 
 

 VTR. The following table sets forth the changes in other operating costs and expenses for our VTR segment. 
 
 Year ended December 31, Increase (decrease) Increase (decrease) from: 
 2020 2019 FX Organic 
 in millions 
 
 Personnel and contract labor $ 61.1 $ 75.7 $ (14.6) $ (8.0) $ (6.6) 
 Network-related 67.2 63.2 4.0 (8.2) 12.2 
 Service-related 36.4 38.3 (1.9) (4.4) 2.5 
 Commercial 76.2 79.0 (2.8) (10.0) 7.2 
 Facility, provision, franchise and other 42.2 55.2 (13.0) (5.6) (7.4) 
 Share-based compensation expense 8.2 4.8 3.4 (0.9) 4.3 
 Total other operating costs and expenses $ 291.3 $ 316.2 $ (24.9) $ (37.1) $ 12.2 

 
 • Personnel and contract labor: The organic decrease is primarily due to (i) a decrease in salary-related costs, which includes estimated bonus-related expense that has been recognized as share-based compensation expense, as certain 2020 bonuses were paid in the form of equity, as further discussed below under Share-based compensation expense , and (ii) higher capitalized labor costs associated with certain development-related projects. 
 • Network-related: The organic increase is primarily due to (i) higher volumes of network access-related contracted labor and (ii) higher costs related to CPE refurbishment activity. 
 • Service-related: The organic increase is primarily due to (i) higher professional consultancy services and (ii) increased information technology costs associated with software maintenance and support. 
 • Commercial: The organic increase is primarily due to the net effect of (i) an increase in call center volumes as a result of the impact from COVID-19, (ii) a decrease in marketing and advertising expenses and (iii) higher sales commissions to third-party dealers. 
 • Facility, provision, franchise and other costs: The organic decrease is primarily due to lower (i) travel and entertainment costs due to curtailment of such costs as a result of the impact of COVID-19, (ii) bad debt and collection expenses, (iii) facilities-related expenses and (iv) bank-related fees. 
 
 
 
 
 Costa Rica. The following table sets forth the changes in other operating costs and expenses for our Costa Rica segment. 
 
 Year ended December 31, Increase (decrease) Increase (decrease) from: 
 2020 2019 FX Organic 
 in millions 
 
 Personnel and contract labor $ 15.0 $ 15.8 $ (0.8) $ 0.1 $ (0.9) 
 Network-related 8.6 7.9 0.7 — 0.7 
 Service-related 2.0 1.6 0.4 — 0.4 
 Commercial 7.0 3.3 3.7 — 3.7 
 Facility, provision, franchise and other 13.5 14.8 (1.3) — (1.3) 
 Share-based compensation expense 0.7 0.1 0.6 — 0.6 
 Total other operating costs and expenses $ 46.8 $ 43.5 $ 3.3 $ 0.1 $ 3.2 

 
 • Commercial: The organic increase is primarily due to (i) higher sales commissions to third-party dealers and (ii) an increase in call center volumes as a result of the impact from COVID-19. 
 • Facility, provision, franchise and other costs: The organic decrease is primarily due to lower bank-related fees. 
 
 
 
 II-37 

 
 
 

 Corporate . The following tables set forth the changes in other operating costs and expenses for our corporate operations. 
 
 Year ended December 31, Organic increase (decrease) 
 2020 2019 
 in millions 
 
 Personnel and contract labor $ 20.3 $ 28.6 $ (8.3) 
 Network-related 1.1 — 1.1 
 Service-related 14.5 13.0 1.5 
 Facility, provision, franchise and other 11.7 13.5 (1.8) 
 Share-based compensation expense 52.4 33.0 19.4 
 Total other operating costs and expenses $ 100.0 $ 88.1 $ 11.9 

 
 • Personnel and contract labor: The organic decrease is primarily attributable to estimated bonus-related expense that has been recognized as share-based compensation expense, as certain 2020 bonuses were paid in the form of equity, as further discussed below under Share-based compensation expense . 
 • Facility, provision, franchise and other: The organic decrease is primarily attributable to the net effect of (i) lower travel and entertainment costs due to curtailment of such costs as a result of the impact of COVID-19 and (ii) higher expenses associated with a mobile handset insurance program that began during the fourth quarter of 2020 following the closing of the AT&T Acquisition. 
 
 
 
 
 Results of operations (below Adjusted OIBDA)—2020 compared to 2019 
 Share-based compensation expense (included in other operating costs and expenses) 
 Share-based compensation expense increased $40 million during 2020, as compared to 2019. This increase is primarily due to an increase of (i) $19 million related to estimated bonus-related expenses that was paid in the form of equity and (ii) $7 million related to the extension of the expiration period for certain Liberty Global awards held by our employees. 
 
 Depreciation and amortization 
 Our depreciation and amortization expense increased $29 million or 3% during 2020, as compared to 2019. The increase is primarily due to the net effect of (i) an increase in property and equipment additions, primarily associated with the installation of CPE, baseline additions, support-related equipment expenditures and the expansion and upgrade of our networks and other capital initiatives, and (ii) a decrease associated with certain assets becoming fully depreciated. 
 
 Impairment, restructuring and other operating items, net 
 
 
 Year ended December 31, 
 2020 2019 
 in millions 
 
 Impairment charges (a) $ 277.7 $ 204.8 
 Restructuring charges (b) 27.5 45.7 
 Other operating items, net (c) 70.1 17.7 
 Total $ 375.3 $ 268.2 

 (a) The 2020 amount primarily includes goodwill impairment charges of $174 million at C&W Panama and $99 million at various reporting units within the C&W Caribbean and Networks segment mostly related to the economic impacts associated with COVID-19. The 2019 amount primarily includes (i) $185 million related to an impairment of goodwill at C&W Panama and (ii) $17 million related to charges at C&W Caribbean and Networks primarily to reduce the carrying value of property and equipment as a result of the impact of Hurricane Dorian. 
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 (b) Amounts include employee severance and termination costs related to certain reorganization activities and contract termination and other related charges, primarily at VTR and C&W Caribbean and Networks. 
 (c) The 2020 amounts primarily include direct acquisition costs related to the AT&T Acquisition. The 2019 amounts primarily include direct acquisition costs and disposition costs relate to the AT&T Acquisition and, to a lesser extent, the UTS Acquisition. 
 
 Interest expense 
 Our interest expense increased $34 million during 2020, as compared to 2019. The increase is primarily due to (i) the net effect of (a) higher average outstanding debt balances and (b) lower weighted-average interest rates and (ii) higher amortization of (a) discounts and premiums, net, and (b) deferred financing costs. 
 
 Realized and unrealized gains or losses on derivative instruments, net 
 The details of our realized and unrealized losses on derivative instruments, net, are as follows: 
 
 Year ended December 31, 
 2020 2019 
 in millions 
 
 Cross-currency and interest rate derivative contracts (a) (b) $ (328.6) $ (21.0) 
 Foreign currency forward contracts (7.8) 9.4 
 Weather Derivatives (c) (16.3) (5.6) 
 Total $ (352.7) $ (17.2) 

 (a) The loss during 2020 includes a realized gain of $71 million associated with the settlement of certain cross-currency 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 to our consolidated financial statements. 
 (b) The loss during 2020 is primarily attributable to the net effect of (i) changes in interest rates and (ii) changes in FX rates, predominantly due to changes in the value of the Chilean peso relative to the U.S. dollar. In addition, the loss during 2020 includes a net gain of $47 million resulting from changes in our credit risk valuation adjustments, which are primarily due to increased credit risk stemming from market reaction to the COVID-19 outbreak. The loss during 2019 is primarily attributable to (i) changes in interest rates and (ii) changes in FX rates, predominantly due to changes in the value of the Chilean peso relative to the U.S. dollar. In addition, the loss during 2019 includes a net gain of $4 million resulting from changes in our credit risk valuation adjustments. 
 (c) Amounts represent the amortization of the premiums associated with our Weather Derivatives. 
 
 Foreign currency transaction gains or losses, net 
 The details of our foreign currency transaction gains (losses), net, are as follows: 
 
 Year ended December 31, 
 2020 2019 
 in millions 
 
 U.S. dollar-denominated debt issued by a Chilean peso functional currency entity $ 61.7 $ (98.4) 
 Intercompany payables and receivables denominated in a currency other than the entity’s functional currency (53.2) (10.0) 
 British pound sterling-denominated debt issued by a U.S. dollar functional currency entity — (3.7) 
 Other (7.3) (0.4) 
 Total $ 1.2 $ (112.5) 

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 Gains or losses on debt modification and extinguishment, net 
 We recognized losses on debt modification and extinguishment, net, of $45 million and $20 million during 2020 and 2019, respectively. The losses during 2020 are associated with (i) the payment of call premiums and the write-off of unamortized deferred financing costs related to the repayment of certain senior notes then outstanding at VTR and (ii) the write-off of unamortized discounts and deferred financing costs associated with the repayment of the C&W Term Loan B-4 Facility. The loss during 2019 primarily includes the payment of redemption premiums. 
 
 Other income or expense, net 
 We recognized other income of $5 million and $14 million during 2020 and 2019, respectively. The amount during 2020 primarily relates to the net effect of (i) interest income, including interest we generated on restricted cash held in escrow in advance of the closing of the AT&T Acquisition, and (ii) other individually insignificant expenses. The amount during 2019 primarily relates to interest income. 
 
 Income tax benefit or expense 
 We recognized income tax benefit of $28 million and $100 million during 2020 and 2019, respectively. 
 The income tax benefit attributable to our loss before income taxes during 2020 differs from the amounts computed using the statutory tax rate (based on the Bermuda statutory tax rate of 0%), primarily due to the beneficial effects of (i) international rate differences, (ii) changes in enacted tax laws (but which are nearly entirely offset by valuation allowance), and (iii) net favorable changes in uncertain tax positions. These beneficial impacts to our effective tax rate were partially offset by the negative effects of (i) increases in valuation allowances, (ii) permanent items, such as non-deductible goodwill impairment and other non-deductible expenses, and (iii) the inclusion of withholding taxes on cross-border payments. 
 The income tax expense attributable to our loss before income taxes during 2019 differs from the amounts computed using the statutory tax rate (based on the Bermuda statutory tax rate of 0%), primarily due to the beneficial effects of (i) net favorable changes in uncertain tax positions, (ii) international rate differences, (iii) basis adjustments associated with investments in Liberty Latin America entities and (iv) enacted tax rate changes, which are offset by the detrimental effects of (i) increases in valuation allowances, (ii) non-deductible goodwill impairments and (iii) net unfavorable permanent difference. 
 
 Net earnings or loss 
 The following table sets forth selected summary financial information of our net loss for the periods indicated: 
 
 Year ended December 31, 
 2020 2019 
 in millions 
 
 Operating income $ 93.2 $ 325.8 
 Net non-operating expenses $ (924.9) $ (634.4) 
 Income tax benefit $ 27.8 $ 100.2 
 Net loss $ (803.9) $ (208.4) 

 
 Net earnings or loss attributable to noncontrolling interests 
 We reported net losses attributable to noncontrolling interests of $122 million and $102 million during 2020 and 2019, respectively. 
 
 Liquidity and Capital Resources 
 Sources and Uses of Cash 
 As of December 31, 2021, we have four primary “borrowing groups,” which include the respective restricted parent and subsidiary entities of C&W, Liberty Puerto Rico, VTR and Costa Rica. Our borrowing groups, which typically generate cash from operating activities, held a significant portion of our consolidated cash and cash equivalents at December 31, 2021. Our ability to access the liquidity of these and other subsidiaries 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. For details of the restrictions on our subsidiaries to make payments to us through dividends, loans or other distributions see note 10 to our consolidated financial statements. 
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 Cash and cash equivalents 
 The details of the U.S. dollar equivalent balances of our cash and cash equivalents at December 31, 2021 are set forth in the following table (in millions): 
 
 Cash and cash equivalents held by: 
 Liberty Latin America and unrestricted subsidiaries: 
 Liberty Latin America (a) $ 72.5 
 Unrestricted subsidiaries (b) 107.3 
 Total Liberty Latin America and unrestricted subsidiaries 179.8 
 Borrowing groups (c): 
 C&W 562.9 
 Liberty Puerto Rico 157.7 
 VTR (d) 32.1 
 Costa Rica 24.2 
 Total borrowing groups 776.9 
 Total cash and cash equivalents 
 $ 956.7 

 (a) Represents the amount held by Liberty Latin America on a standalone basis. 
 (b) Represents the aggregate amount held by subsidiaries of Liberty Latin America that are outside of our borrowing groups. All of these companies rely on funds provided by our borrowing groups to satisfy their liquidity needs. 
 (c) Represents the aggregate amounts held by the parent entity of the applicable borrowing group and their restricted subsidiaries. 
 (d) Represents current excess cash of VTR retained by Liberty Latin America. Cash of $110 million associated with the Chile JV Entities has been reflected in assets held for sale on our December 31, 2021 consolidated balance sheet. 
 Liquidity and capital resources of Liberty Latin America and its unrestricted subsidiaries 
 Our current sources of corporate liquidity include (i) cash and cash equivalents held by Liberty Latin America and, subject to certain tax and legal considerations, Liberty Latin America’s unrestricted subsidiaries, and (ii) interest and dividend income received on our and, subject to certain tax and legal considerations, our unrestricted subsidiaries’ cash and cash equivalents and investments. From time to time, Liberty Latin America and its unrestricted subsidiaries may also receive (i) proceeds in the form of distributions or loan repayments from Liberty Latin America’s borrowing groups upon (a) the completion of recapitalizations, refinancings, asset sales or similar transactions by these entities or (b) the accumulation of excess cash from operations or other means, (ii) proceeds upon the disposition of investments and other assets of Liberty Latin America and its unrestricted subsidiaries and (iii) proceeds in connection with the incurrence of debt by Liberty Latin America or its unrestricted subsidiaries or the issuance of equity securities by Liberty Latin America. No assurance can be given that any external funding would be available to Liberty Latin America or its unrestricted subsidiaries on favorable terms, or at all. As noted above, various factors may limit our ability to access the cash of our borrowing groups. 
 Our corporate liquidity requirements include (i) corporate general and administrative expenses and (ii) other liquidity needs that may arise from time to time. In addition, Liberty Latin America and its unrestricted subsidiaries may require cash in connection with (i) the repayment of third-party and intercompany debt, (ii) the satisfaction of contingent liabilities, (iii) acquisitions and other investment opportunities, (iv) the repurchase of debt securities, (v) tax payments or (vi) any funding requirements of our consolidated subsidiaries. 
 In March 2020, our Directors approved the Share Repurchase Program. During 2021, the aggregate value of our share repurchases was $65 million. For additional information regarding our Share Repurchase Program, see note 19 to our consolidated financial statements and above Part II—Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . 
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 Liquidity and capital resources of borrowing groups 
 The cash and cash equivalents of our borrowing groups are detailed in the table above. In addition to cash and cash equivalents, the primary sources of liquidity of our borrowing groups are cash provided by operations and borrowing availability under their respective debt instruments. For the details of the borrowing availability of our borrowing groups at December 31, 2021, see note 10 to our consolidated financial statements. The aforementioned sources of liquidity may be supplemented in certain cases by contributions and/or loans from Liberty Latin America and its unrestricted subsidiaries. The liquidity of our borrowing groups generally is used to fund capital expenditures, debt service requirements and income tax payments. From time to time, our borrowing groups may also require liquidity in connection with (i) acquisitions and other investment opportunities, (ii) loans to Liberty Latin America, (iii) capital distributions to Liberty Latin America and other equity owners or (iv) the satisfaction of contingent liabilities. No assurance can be given that any external funding would be available to our borrowing groups on favorable terms, or at all. 
 For additional information regarding our cash flows, see the discussion under Liquidity and Capital Resources—Consolidated Statements of Cash Flows below. 
 Capitalization 
 We seek to maintain our debt at levels that provide for attractive equity returns without assuming undue risk. When it is cost effective, we generally seek to match the denomination of the borrowings of our subsidiaries with the functional currency of the operations that support the respective borrowings. As further discussed under Item 7A. Qualitative and Quantitative Disclosures about Market Risk and in note 5 to our consolidated financial statements, we also use derivative instruments to mitigate foreign currency and interest rate risks associated with our debt instruments. 
 Our ability to service or refinance our debt and to maintain compliance with the leverage covenants in the credit agreements of our borrowing groups is dependent primarily on our ability to maintain covenant EBITDA of our operating subsidiaries, as specified by our subsidiaries’ debt agreements ( Covenant EBITDA ), and to achieve adequate returns on our property and equipment additions and acquisitions. In addition, our ability to obtain additional debt financing is limited by incurrence-based leverage covenants contained in the various debt instruments of our borrowing groups. For example, if the Covenant EBITDA of one of our borrowing groups were to decline, our ability to support or obtain additional debt in that borrowing group could be limited. No assurance can be given that we would have sufficient sources of liquidity, or that any external funding would be available on favorable terms, or at all, to fund any such required repayment. At December 31, 2021, each of our borrowing groups was in compliance with its debt covenants. We do not anticipate any instances of non-compliance with respect to the debt covenants of our borrowing groups that would have a material adverse impact on our liquidity during the next 12 months. 
 At December 31, 2021, the outstanding principal amount of our debt, together with our finance lease obligations, excluding VTR, aggregated $7,686 million, including $106 million that is classified as current in our consolidated balance sheet and $6,433 million that is not due until 2027 or thereafter. At December 31, 2021, $7,281 million of our debt and finance lease obligations have been borrowed or incurred by our subsidiaries. Included in the outstanding principal amount of our debt at December 31, 2021 is $100 million of vendor financing, which we use to finance certain of our operating expenses and property and equipment additions. These obligations are generally due within one year, other than for certain licensing arrangements that generally are due over the term of the related license. For additional information concerning our debt, including our debt maturities, see note 10 to our consolidated financial statements. 
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 The weighted average interest rate in effect at December 31, 2021 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin, was 4.8%. The interest rate is based on stated rates and does not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. The weighted average impact of the derivative instruments, excluding forward-starting derivative instruments, on our borrowing costs at December 31, 2021 was as follows: 
 
 Borrowing group Increase to borrowing costs 
 
 C&W 0.73%. 
 Liberty Puerto Rico 0.40 % 
 Costa Rica 0.40 % 
 Liberty Latin America borrowing groups 0.56 % 

 Including the effects of derivative instruments, original issue premiums or discounts, including the discount on the Convertible Notes associated with the instrument’s conversion option, and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 5.6% at December 31, 2021. 
 We believe that we have sufficient resources to repay or refinance the current portion of our debt and finance lease obligations and to fund our foreseeable liquidity requirements during the next 12 months. However, as our debt maturities grow in later years, we anticipate that we will seek to refinance or otherwise extend our debt maturities. No assurance can be given that we will be able to complete refinancing transactions or otherwise extend our debt maturities. In this regard, it is difficult to predict how political, economic and social conditions, sovereign debt concerns or any adverse regulatory developments will impact the credit and equity markets we access and our future financial position. Our ability to access debt financing on favorable terms, or at all, could be adversely impacted by (i) the financial failure of any of our counterparties, which could (a) reduce amounts available under committed credit facilities and (b) adversely impact our ability to access cash deposited with any failed financial institution, and (ii) tightening of the credit markets. In addition, any weakness in the equity markets could make it less attractive to use our shares to satisfy contingent or other obligations, and sustained or increased competition, particularly in combination with adverse economic or regulatory developments, could have an unfavorable impact on our cash flows and liquidity. 
 
 Consolidated Statements of Cash Flows 
 General. Our cash flows are subject to variations due to FX. For further information, see related discussion under Item 7A. Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk below. 
 
 Consolidated Statements of Cash Flows—2021 compared to 2020 
 Summary. Our 2021 and 2020 consolidated statements of cash flows are summarized as follows: 
 
 Year ended December 31, 
 2021 2020 Change 
 in millions 
 
 Net cash provided by operating activities $ 1,016.2 $ 640.1 $ 376.1 
 Net cash used by investing activities (1,268.6) (2,450.8) 1,182.2 
 Net cash provided by financing activities 426.6 271.1 155.5 
 Effect of exchange rate changes on cash, cash equivalents and restricted cash (12.5) (4.9) (7.6) 
 Net increase (decrease) in cash, cash equivalents and restricted cash $ 161.7 $ (1,544.5) $ 1,706.2 

 Operating Activities. The increase in cash provided by operating activities is primarily due to the net impact of (i) an increase in Adjusted OIBDA, particularly in our Liberty Puerto Rico segment, and related working capital changes, (ii) an increase resulting from $73 million of cash used during 2020 for the purchase of prepaid roaming services in conjunction with the AT&T Acquisition, (iii) a decrease related to derivative payments and (iv) an increase related to a decline in cash paid for taxes. For additional information regarding cash used for derivative activities, see note 5 to the consolidated financial statements. For additional information relating to the purchase of prepaid roaming services, see note 4 to our consolidated financial statements. For additional information regarding our non-GAAP measure of consolidated Adjusted OIBDA, including 
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 a reconciliation to the nearest U.S. GAAP measure, see Results of Operations—Year ended December 31, 2021 as Compared with Year Ended December 31, 2020—Adjusted OIBDA above. 
 Investing Activities. Our cash used during 2021 primarily includes (i) $736 million related to capital expenditures and (ii) $521 million, primarily related to the Telefónica Costa Rica Acquisition. Our cash used during 2020 primarily includes (i) $1,886 million, mostly related the AT&T Acquisition, (ii) and $566 million related to capital expenditures. 
 The capital expenditures that we report in our consolidated statements of cash flows, which includes cash paid for property and equipment and intangible assets that were not acquired in connection with an acquisition, does not include amounts that are financed under capital-related vendor financing or finance lease arrangements. Instead, these amounts are reflected as non-cash additions to our property and equipment when the underlying assets are delivered and as repayments of debt when the principal is repaid. In this discussion, we refer to (i) our capital expenditures, as reported in our consolidated statements of cash flows, and (ii) our total property and equipment additions, which include our capital expenditures on an accrual basis and amounts financed under capital-related vendor financing or finance lease arrangements. 
 A reconciliation of our property and equipment additions to our capital expenditures, as reported in our consolidated statements of cash flows, is set forth below: 
 
 Year ended December 31, 
 2021 2020 
 in millions 
 
 Property and equipment additions $ 855.9 $ 631.1 
 Assets acquired under capital-related vendor financing arrangements (100.5) (99.1) 
 Acquisition of intangible assets 
 — 7.8 
 
 Changes in current liabilities related to capital expenditures (19.1) 26.0 
 Capital expenditures $ 736.3 $ 565.8 

 The increase in our property and equipment additions during the year ended December 31, 2021, as compared to 2020, is primarily due to increases related to each asset category, in particular assets related to new build and upgrades and capacity additions. During the year ended December 31, 2021 and 2020, our property and equipment additions represented 17.8% and 16.8% of revenue, respectively. 
 We expect the percentage of revenue represented by our aggregate 2022 property and equipment additions to be approximately 18%. The actual amount of the 2022 consolidated property and equipment additions may vary from expected amounts for a variety of reasons, including (i) potential impacts from COVID-19, (ii) changes in (a) the competitive or regulatory environment, (b) business plans, (c) our expected future operating results and (d) foreign currency exchange rates and, (iii) the availability of sufficient capital. Accordingly, no assurance can be given that our actual property and equipment additions will not vary materially from our expectations. 
 Financing Activities. During the year ended December 31, 2021, we generated $427 million of cash from financing activities, primarily due to the net effect of (i) $617 million of net borrowings of debt, (ii) $75 million related to payments of financing costs and debt redemption premiums, (iii) $63 million associated with the repurchase of Liberty Latin America common shares, (iv) $48 million in payments related to distributions to noncontrolling interest owners, primarily in C&W Bahamas and C&W Panama, (v) $47 million related to the contribution from a noncontrolling interest owner, as further described in note 19 of the consolidated financial statements, and (vi) $43 million related to derivative payments. During 2020, we generated $271 million of cash from financing activities, primarily due to (i) $347 million related to the Rights Offering and (ii) $183 million of net cash related to derivative instruments. These items were slightly offset by (i) $120 million of net repayments of debt and (ii) $99 million related to payments of financing costs and debt premiums. The net cash received related to derivative instruments is primarily due to the unwinding of cross-currency swaps held at our VTR borrowing group, as further described in note 5 to the consolidated financial statements. 
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 Consolidated Statements of Cash Flows—2020 compared to 2019 
 Summary. Our 2020 and 2019 consolidated statements of cash flows are summarized as follows: 
 
 Year ended December 31, 
 2020 2019 Change 
 in millions 
 
 Net cash provided by operating activities $ 640.1 $ 918.2 $ (278.1) 
 Net cash used by investing activities (2,450.8) (635.3) (1,815.5) 
 Net cash provided by financing activities 271.1 1,539.8 (1,268.7) 
 Effect of exchange rate changes on cash, cash equivalents and restricted cash (4.9) (7.7) 2.8 
 Net increase (decrease) in cash, cash equivalents and restricted cash $ (1,544.5) $ 1,815.0 $ (3,359.5) 

 Operating Activities. The decrease in net cash provided by our operating activities is primarily attributable to the net effect of (i) $73 million of cash used for the purchase of prepaid roaming services in conjunction with the AT&T Acquisition, (ii) a decrease of $61 million related to derivative activities, (iii) a decrease from our consolidated Adjusted OIBDA (a non-GAAP measure), (iv) lower tax payments of $49 million, and (v) the negative impact for the comparative period resulting from $33 million of cash received during 2019 associated with the final insurance settlement for hurricanes Irma, Maria, and Matthew that was reflected as an operating cash inflow. Additionally, the working capital changes in our consolidated statement of cash flows for 2020 and 2019 include the negative impacts of a $33 million and $185 million release of an uncertain tax position liability, respectively, that have been reflected as a tax benefit in our consolidated statements of operations, as further described in note 15 to our consolidated financial statements. For additional information regarding our non-GAAP measure of consolidated Adjusted OIBDA, including a reconciliation to the nearest U.S. GAAP measure, see Results of Operations—Year ended December 31, 2020 as Compared with Year Ended December 31, 2019—Adjusted OIBDA above. 
 Investing Activities. Our cash used during 2020 primarily includes (i) $1,886 million mostly related the AT&T Acquisition, (ii) and $566 million related to capital expenditures. Our cash used during 2019 primarily includes (i) $589 million of cash used related to capital expenditures, (ii) $161 million of cash used for the UTS Acquisition in March 2019, (iii) $78 million of net cash received in connection with the Seychelles Disposition, and (iv) $34 million of cash we received during the first quarter of 2019 related to the recovery on damaged or destroyed property and equipment resulting from hurricanes Maria, Irma and Matthew. For additional information regarding the settlement of our insurance claims associated with these hurricanes, see note 7 to our consolidated financial statements. See below for additional information relating to cash used for capital expenditures. 
 A reconciliation of our property and equipment additions to our capital expenditures, as reported in our consolidated statements of cash flows, is set forth below: 
 
 Year ended December 31, 
 2020 2019 
 in millions 
 
 Property and equipment additions $ 631.1 $ 721.5 
 Assets acquired under capital-related vendor financing arrangements (99.1) (96.1) 
 Acquisition of intangible assets 7.8 — 
 Assets acquired under finance leases — (0.2) 
 Changes in current liabilities related to capital expenditures 26.0 (36.1) 
 Capital expenditures $ 565.8 $ 589.1 

 The decrease in our property and equipment additions during 2020, as compared to 2019, is primarily due to a decrease in (i) new build & upgrade equipment and (ii) customer premise equipment. During 2020 and 2019, our property and equipment additions represented 16.8% and 18.7% of revenue, respectively. 
 Financing Activities. During 2020, we generated $271 million of cash from financing activities, primarily due to (i) $347 million related to the Rights Offering and (ii) $183 million of net cash related to derivative instruments. These items were slightly offset by (i) $120 million of net repayment of debt and (ii) $99 million related to payments of financing costs and debt premiums. During 2019, we received $1,540 million in net cash from financing activities, primarily due to $1,691 million of net 
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 borrowings of debt, which was slightly offset by $55 million related to payments of financing costs and debt premiums, $46 million of cash used related to the purchase of Capped Calls, and $38 million for the distribution to noncontrolling interest owners, primarily related to Panama operations. The net borrowings of debt primarily relates to the $1.2 billion principal amount of 2027 LPR Senior Secured Notes issued related to the then pending AT&T Acquisition and the issuance of the Convertible Notes, each as further described in note 10 to our consolidated financial statements. 
 
 Off Balance Sheet Arrangements 
 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 in the future. 
 Contractual Commitments 
 The following table sets forth the U.S. dollar equivalents of our debt and certain other contractual obligations and commitments as of December 31, 2021. Due to the held-for-sale presentation of the Chile JV Entities at December 31, 2021, the contractual commitments of these entities have been shown separately in the table below. For information regarding the held-for-sale presentation of the Chile JV Entities, see note 9 to our consolidated financial statements. 
 
 Payments due by period 
 Total Less than
1 year 1-3 years 3-5 years More than
5 years 
 in millions 
 
 Debt (excluding interest) 
 $ 7,678.3 $ 105.4 $ 997.2 $ 146.8 $ 6,428.9 
 Finance leases (excluding interest) 
 7.6 0.8 1.6 1.4 3.8 
 Operating leases 568.1 96.4 160.8 126.3 184.6 
 Programming minimum commitments (a) 31.0 24.9 6.0 0.1 — 
 Other (b) 49.4 49.1 0.3 — — 
 Total (c) $ 8,334.4 $ 276.6 $ 1,165.9 $ 274.6 $ 6,617.3 
 
 Projected cash interest payments on debt and finance lease obligations (d) $ 2,187.6 $ 374.0 $ 714.5 $ 628.9 $ 470.2 
 
 Chile JV Entities: 
 Debt (excluding interest) $ 1,522.2 $ 82.2 $ — $ — $ 1,440.0 
 Other contractual commitments (a) 274.2 144.3 126.2 3.7 — 
 Total $ 1,796.4 $ 226.5 $ 126.2 $ 3.7 $ 1,440.0 
 
 Projected cash interest payments on debt obligations (d) $ 552.9 $ 80.5 $ 161.1 $ 159.4 $ 151.9 

 (a) Amounts primarily represent guaranteed minimum programming fees under multi-year contracts typically based on a rate per customer or stated annual fee. 
 (b) Amounts primarily represent guaranteed minimum commitments associated with our customer premise equipment and mobile handset device contractual obligations. 
 (c) The commitments included in this table do not reflect any liabilities that are included in our December 31, 2021 consolidated balance sheet other than (i) debt and (ii) finance and operating lease obligations. Our liability for uncertain tax positions, including accrued interest, in the various jurisdictions in which we operate ( $25 million at December 31, 2021) has been excluded from the table as the amount and timing of any related payments are not subject to reasonable estimation. For additional information regarding our liability for uncertain tax positions, see note 15 to our consolidated financial statements. 
 (d) Amounts are based on interest rates, interest payment dates, commitment fees and contractual maturities in effect as of December 31, 2021. These amounts are presented for illustrative purposes only and will likely differ from the actual cash 
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 payments required in future periods. In addition, the amounts presented do not include the impact of our derivative contracts. 
 For information concerning our debt and finance lease obligations, operating leases and commitments, see notes 10 and 11, respectively, to our consolidated financial statements. 
 In addition to the commitments set forth in the table above, we have commitments under (i) derivative instruments and (ii) defined benefit plans and similar agreements, pursuant to which we expect to make payments in future periods. For information regarding projected cash flows associated with our derivative instruments, see Item 7A. Quantitative and Qualitative Disclosures About Market Risk—Projected Cash Flows Associated with Derivative Instruments below . For information regarding our derivative instruments, including the net cash paid or received in connection with these instruments during 2021, 2020 and 2019, see note 5 to our consolidated financial statements. For information regarding our defined benefit plans, see note 16 to our consolidated financial statements. 
 
 Critical Accounting Policies, Judgments and Estimates 
 In connection with the preparation of our consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Critical accounting policies are defined as those policies that are reflective of significant judgments, estimates and uncertainties, which would potentially result in materially different results under different assumptions and conditions. We believe the following accounting policies are critical in the preparation of our consolidated financial statements because of the judgment necessary to account for these matters and the significant estimates involved, which are susceptible to change: 
 • Impairment of property and equipment and intangible assets (including goodwill); and 
 • Fair value measurements in acquisition accounting. 
 For additional information concerning our significant accounting policies, see note 3 to our consolidated financial statements. 
 Impairment of Property and Equipment and Intangible Assets 
 The aggregate carrying value of our property and equipment and intangible assets (including goodwill) that was held for use comprised 68% of our total assets at December 31, 2021. 
 When circumstances warrant, we review the carrying amounts of our property and equipment and our intangible assets (other than goodwill and other indefinite-lived intangible assets) to determine whether such carrying amounts continue to be recoverable. Such changes in circumstance may include (i) the impact of natural disasters such as hurricanes, (ii) an expectation of a sale or disposal of a long-lived asset or asset group, (iii) adverse changes in market or competitive conditions, (iv) an adverse change in legal factors or business climate in the markets in which we operate and (v) operating or cash flow losses. For purposes of impairment testing, long-lived assets are grouped at the lowest level for which cash flows are largely independent of other assets and liabilities, generally at or below the reporting unit level (see below). 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. 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 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. When evaluating impairment with respect to goodwill and other indefinite-lived intangibles, we first make a qualitative assessment to determine if the goodwill or other indefinite-lived intangible may be impaired. 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”). Goodwill impairment is recorded as the excess of a reporting unit’s carrying value over its fair value and is charged to operations. With respect to other indefinite-lived intangible assets, if it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying value, we then estimate its fair value and any excess of the carrying value over the fair value is also charged to operations as an impairment loss. 
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 When required, considerable management judgment is necessary to estimate the fair value of reporting units and underlying long-lived and indefinite-lived assets. We typically determine fair value using a market-value approach or an income-based approach (discounted cash flows) based on assumptions in our long-range business plans, or a combination of an income-based and market-value approach. With respect to our discounted cash flow analysis used in the income-based approach, the timing and amount of future cash flows under these business plans require estimates of, among other items, subscriber growth and retention rates, rates charged per product, expected gross margins and Adjusted OIBDA margins and expected property and equipment additions. The development of these cash flows, and the discount rate applied to the cash flows, is subject to inherent uncertainties, and actual results could vary significantly from such estimates. Our determination of the discount rate is based on a weighted average cost of capital approach, which uses a market participant’s cost of equity and after-tax cost of debt and reflects certain risks inherent in the future cash flows. With respect to a market-value approach, the fair value of a reporting unit is estimated based upon a market multiple typically applied to the reporting unit’s Adjusted OIBDA. 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.” Changes in the underlying assumptions used in both the income-based and market-value valuation methods can result in materially different determinations of fair value. 
 During 2021, we recorded goodwill impairments of $605 million related to C&W Caribbean and Networks. During 2020, we recorded goodwill impairments of $174 million and $99 million, respectively, related to C&W Panama and C&W Caribbean and Networks, respectively. During 2019, we recorded goodwill impairments of $185 million related to C&W Panama. A hypothetical increase/(decrease) of 0.1% in the discount rate used in the goodwill impairment assessment that resulted in our 2021 goodwill impairment charges would have resulted in an increase/(decrease) of approximately $13 million in aggregate to the goodwill impairment. For additional information regarding impairments recorded during 2021, 2020 and 2019, see notes 6 and 8 to our consolidated financial statements. 
 Fair Value Measurements in Acquisition Accounting 
 The application of acquisition accounting requires that we make fair value determinations as of the applicable valuation date. In making these determinations, we are required to make estimates and assumptions that affect the recorded amounts, including, but not limited to, expected future cash flows, market comparables and discount rates, remaining useful lives of long-lived assets, replacement or reproduction costs of property and equipment and the amounts to be recovered in future periods from acquired net operating losses and other deferred tax assets. To assist us in making these fair value determinations, we may engage third-party valuation specialists. Our estimates in this area impact, among other items, the amount of depreciation and amortization and income tax expense or benefit that we report. Our estimates of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain. A significant portion of our long-lived assets were initially recorded through the application of acquisition accounting. 
 With respect to the valuation of spectrum license as part of the AT&T Acquisition, we estimate fair value using the Greenfield methodology, which is an income approach, to estimate the price at which an orderly transaction to sell the asset would take place between market participants at the measurement date under current market conditions. The Greenfield methodology values the spectrum licenses by calculating the cash flow generating potential of a hypothetical start-up company that goes into business with no assets except the asset to be valued (in this case, spectrum licenses) and makes investments required to build an operation comparable to current use. The value of the spectrum licenses can be considered as equal to the present value of the cash flows of this hypothetical start-up company. We base the assumptions underlying the Greenfield methodology on a combination of market participant data and our historical results, trends and business plans. Future cash flows in the Greenfield methodology are based on estimates and assumptions of market participant revenues and costs, network construction build-out period and costs and a long-term growth rate for a market participant. The cash flows are discounted using a weighted average cost of capital. The valuation approach utilized to estimate fair value of spectrum licenses require the use of assumptions and estimates, which involve a degree of uncertainty. 
 For additional information, including the specific weighted average discount rates we used to complete certain nonrecurring valuations, see note 6 to our consolidated financial statements. For information regarding our acquisitions and long-lived assets, see notes 4 and 8, respectively, to our consolidated financial statements. 
 
 
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Liberty Latin America Ltd. 10-K

Item 7. Management’s Discussion and Analysis
