Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Fair Values of Derivative Instrument Assets and Liabilities

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



	June 30, 2013						December 31, 2012
	Current (a)		Long-term (a)		Total		Current (a)		Long-term (a)		Total
	in millions
Assets:
Cross-currency and interest rate derivative contracts (b)	$	180.9	$	736.6	$	917.5	$	191.3	$	467.1	$	658.4
Equity-related derivative instruments (c)	433.1		584.8		1,017.9		—		594.6		594.6
Foreign currency forward contracts	6.4		11.9		18.3		0.7		0.4		1.1
Other	1.3		2.7		4.0		1.3		3.0		4.3
Total	$	621.7	$	1,336.0	$	1,957.7	$	193.3	$	1,065.1	$	1,258.4
Liabilities:
Cross-currency and interest rate derivative contracts (b)	$	591.6	$	1,606.2	$	2,197.8	$	543.2	$	2,156.3	$	2,699.5
Equity-related derivative instruments (c)	15.8		—		15.8		21.6		—		21.6
Foreign currency forward contracts	1.0		0.1		1.1		4.5		3.6		8.1
Other	1.7		0.8		2.5		0.6		0.7		1.3
Total	$	610.1	$	1,607.1	$	2,217.2	$	569.9	$	2,160.6	$	2,730.5

_______________


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

(b)

We consider credit risk in our fair value assessments. As of June 30, 2013 and December 31, 2012, (i) the fair values of our cross-currency and interest rate derivative contracts that represented assets have been reduced by credit risk valuation adjustments aggregating $36.8 million and $17.2 million, respectively, and (ii) the fair values of our cross-currency and interest rate derivative contracts that represented liabilities have been reduced by credit risk valuation adjustments aggregating $129.2 million and $156.5 million, respectively. The adjustments to our derivative assets relate to the credit risk associated with counterparty nonperformance and the adjustments to our derivative liabilities relate to credit risk associated with our own nonperformance. In all cases, the adjustments take into account offsetting liability or asset positions within a given contract. Our determination of credit risk valuation adjustments generally is based on our and our counterparties’ credit risks, as observed in the credit default swap market and market quotations for certain of our subsidiaries’ debt instruments, as applicable. The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in net losses of $13.0 million and $45.5 million during the three and six months ended June 30, 2013, respectively, and net losses of $70.6 million and $48.3 million during the three and six months ended June 30, 2012, respectively. These amounts are included in realized and unrealized gains (losses) on derivative instruments, net, in our condensed consolidated statements of operations. For further information concerning our fair value measurements, see note 5.

(c)

The fair value of our equity-related derivative instruments relates to (i) the Virgin Media Capped Call, as defined and described below, and (ii) the share collar (the Sumitomo Collar) with respect to the Sumitomo shares held by our company. The fair value of the Sumitomo Collar does not include a credit risk valuation adjustment as we have assumed that any losses incurred by our company in the event of nonperformance by the counterparty would be, subject to relevant insolvency laws, fully offset against amounts we owe to the counterparty pursuant to the secured borrowing arrangements of the Sumitomo Collar.

Schedule of Realized and Unrealized Losses on Derivative Instruments

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



	Three months ended					Six months ended
	June 30,					June 30,
	2013			2012		2013			2012
	in millions

Continuing operations:
Cross-currency and interest rate derivative contracts	$	162.4		$	169.5	$	343.0		$	(309.6	)
Equity-related derivative instruments (a)	(61.8		)	66.9		(149.5		)	(59.6		)
Foreign currency forward contracts	(103.5		)	0.7		(1.1		)	(9.7		)
Other	(1.8		)	0.3		(1.3		)	2.2
Total — continuing operations	$	(4.7	)	$	237.4	$	191.1		$	(376.7	)
Discontinued operation	$	—		$	0.9	$	—		$	4.6

_______________


(a)	Represents activity related to the Sumitomo Collar and the Virgin Media Capped Call, as defined and described below

Schedule of Cash Received (Paid) Related to Derivative Instruments Statement of Cash Flows Location

The classification of these cash inflows (outflows) are as follows:



	Six months ended
	June 30,
	2013			2012
	in millions
Continuing operations:
Operating activities	$	(211.8	)	$	(245.5	)
Investing activities	(15.4		)	24.1
Financing activities	(4.4		)	(64.9		)
Total — continuing operations	$	(231.6	)	$	(286.3	)
Discontinued operation	$	—		$	(6.6	)

Currency Swap [Member]

Derivative [Line Items]

Schedule of Derivative Instruments

Cross-currency Swaps:

The terms of our outstanding cross-currency swap contracts at June 30, 2013 are as follows:



Subsidiary / Final maturity date (a)	Notional amount due from counterparty		Notional amount due to counterparty		Interest rate due from counterparty	Interest rate due to counterparty
	in millions

Virgin Media Investment Holdings Limited (VMIH), a subsidiary of Virgin Media:
February 2022	$	1,400.0	£	873.6	5.01%	5.35%
June 2020	$	1,384.6	£	901.4	6 mo. LIBOR + 2.75%	6 mo. GBP LIBOR + 3.18%
October 2020	$	1,370.4	£	881.6	6 mo. LIBOR + 2.75%	6 mo. GBP LIBOR + 3.10%
November 2016 (b)	$	1,000.0	£	516.9	6.50%	6.91%
January 2018	$	1,000.0	£	615.7	6.50%	7.02%
October 2019	$	500.0	£	302.3	8.38%	9.02%
April 2019	$	291.5	£	186.2	5.38%	5.49%
UPC Holding:
April 2016 (b)	$	400.0	CHF	441.8	9.88%	9.87%
UPC Broadband Holding BV (UPC Broadband Holding), a subsidiary of UPC Holding:
November 2019	$	500.0	€	362.9	7.25%	7.74%
January 2015 - July 2021	$	312.0	€	240.0	6 mo. LIBOR + 2.50%	6 mo. EURIBOR + 2.87%
October 2020	$	300.0	€	219.1	6 mo. LIBOR + 3.00%	6 mo. EURIBOR + 3.04%
January 2017 - July 2021	$	262.1	€	194.1	6 mo. LIBOR + 2.50%	6 mo. EURIBOR + 2.51%
October 2017	$	200.0	€	145.7	6 mo. LIBOR + 3.50%	6 mo. EURIBOR + 3.33%
January 2020	$	197.5	€	150.5	6 mo. LIBOR + 4.92%	6 mo. EURIBOR + 4.91%
September 2014 - July 2021	$	128.0	€	97.2	6 mo. LIBOR + 2.50%	6 mo. EURIBOR + 2.90%
December 2016	$	340.0	CHF	370.9	6 mo. LIBOR + 3.50%	6 mo. CHF LIBOR + 4.01%
January 2017 - July 2021	$	300.0	CHF	278.3	6 mo. LIBOR + 2.50%	6 mo. CHF LIBOR + 2.46%
January 2015 - July 2021	$	200.0	CHF	186.0	6 mo. LIBOR + 2.50%	6 mo. CHF LIBOR + 2.55%
December 2014	$	171.5	CHF	187.1	6 mo. LIBOR + 2.75%	6 mo. CHF LIBOR + 2.95%
December 2014	€	898.4	CHF	1,466.0	6 mo. EURIBOR + 1.68%	6 mo. CHF LIBOR + 1.94%
January 2015 - September 2022	€	383.8	CHF	477.0	6 mo. EURIBOR + 2.00%	6 mo. CHF LIBOR + 2.22%
December 2014 - December 2016	€	360.4	CHF	589.0	6 mo. EURIBOR + 3.75%	6 mo. CHF LIBOR + 3.94%
January 2020	€	175.0	CHF	258.6	7.63%	6.76%
July 2020	€	107.4	CHF	129.0	6 mo. EURIBOR + 3.00%	6 mo. CHF LIBOR + 3.28%
January 2017	€	75.0	CHF	110.9	7.63%	6.98%
July 2015	€	123.8	CLP	86,500.0	2.50%	5.84%



Subsidiary / Final maturity date (a)	Notional amount due from counterparty		Notional amount due to counterparty		Interest rate due from counterparty	Interest rate due to counterparty
	in millions

December 2015	€	69.1	CLP	53,000.0	3.50%	5.75%
December 2014	€	365.8	CZK	10,521.8	5.48%	5.56%
December 2014 - December 2016	€	60.0	CZK	1,703.1	5.50%	6.99%
July 2017	€	39.6	CZK	1,000.0	3.00%	3.75%
December 2014	€	260.0	HUF	75,570.0	5.50%	9.40%
December 2014 - December 2016	€	260.0	HUF	75,570.0	5.50%	10.56%
December 2016	€	150.0	HUF	43,367.5	5.50%	9.20%
July 2018	€	78.0	HUF	19,500.0	5.50%	9.15%
December 2014	€	400.5	PLN	1,605.6	5.50%	7.50%
December 2014 - December 2016	€	245.0	PLN	1,000.6	5.50%	9.03%
September 2016	€	200.0	PLN	892.7	6.00%	8.19%
July 2017	€	82.0	PLN	318.0	3.00%	5.60%
Unitymedia Hessen GmbH & Co. KG (Unitymedia Hessen), a subsidiary of Unitymedia KabelBW:
January 2021	$	1,000.0	€	688.2	5.50%	5.58%
March 2019	$	459.3	€	326.5	7.50%	7.98%

_______________

(a)

For each subsidiary, the notional amount of multiple derivative instruments that mature within the same calendar month are shown in the aggregate and interest rates are presented on a weighted average basis. For derivative instruments that were in effect as of June 30, 2013, we present a single date that represents the applicable final maturity date. For derivative instruments that become effective subsequent to June 30, 2013, we present a range of dates that represents the period covered by the applicable derivative instrument.


(b)	Unlike the other cross-currency swaps presented in this table, the identified cross-currency swaps do not involve the exchange of notional amounts at the inception and maturity of the instruments. Accordingly, the only cash flows associated with these instruments are interest payments and receipts.

Cross-currency and interest rate derivative contracts

Derivative [Line Items]

Schedule of Derivative Instruments

Cross-currency Interest Rate Swaps:

The terms of our outstanding cross-currency interest rate swap contracts at June 30, 2013 are as follows:



Subsidiary / Final maturity date (a)	Notional amount due from counterparty		Notional amount due to counterparty		Interest rate due from counterparty	Interest rate due to counterparty
	in millions
VMIH:
January 2021	$	500.0	£	308.9	5.25%	6 mo. GBP LIBOR + 1.94%
UPC Broadband Holding:
July 2018	$	425.0	€	320.9	6 mo. LIBOR + 1.75%	6.08%
September 2014 - January 2020	$	327.5	€	249.5	6 mo. LIBOR + 4.92%	7.52%
December 2014	$	300.0	€	226.5	6 mo. LIBOR + 1.75%	5.78%
December 2014 - July 2018	$	300.0	€	226.5	6 mo. LIBOR + 2.58%	6.80%
December 2016	$	296.6	€	219.8	6 mo. LIBOR + 3.50%	6.75%
July 2018	$	100.0	€	75.4	6 mo. LIBOR + 3.00%	6.97%
November 2019	$	250.0	CHF	226.8	7.25%	6 mo. CHF LIBOR + 5.01%
January 2020	$	225.0	CHF	206.3	6 mo. LIBOR + 4.81%	5.44%
December 2014	$	340.0	CLP	181,322.0	6 mo. LIBOR + 1.75%	8.76%
December 2016	$	201.5	RON	489.3	6 mo. LIBOR + 3.50%	14.01%
December 2014	€	134.2	CLP	107,800.0	6 mo. EURIBOR + 2.00%	10.00%
VTR:
September 2014	$	446.5	CLP	247,137.8	6 mo. LIBOR + 3.00%	11.16%

_______________

(a)

Interest Rate Swap [Member]

Derivative [Line Items]

Schedule of Derivative Instruments

Interest Rate Swaps:

The terms of our outstanding interest rate swap contracts at June 30, 2013 are as follows:



Subsidiary / Final maturity date (a)	Notional amount		Interest rate due from counterparty	Interest rate due to counterparty
	in millions
VMIH:
October 2018	£	2,155.0	6 mo. GBP LIBOR	1.52%
January 2021	£	650.0	5.50%	6 mo. GBP LIBOR + 1.84%
December 2015	£	600.0	6 mo. GBP LIBOR	2.86%
April 2018	£	300.0	6 mo. GBP LIBOR	1.37%
January 2021	£	300.0	6 mo. GBP LIBOR + 1.83%	3.89%
UPC Broadband Holding:
July 2020	$	1,000.0	6.63%	6 mo. LIBOR + 3.03%
January 2022	$	750.0	6.88%	6 mo. LIBOR + 4.89%
January 2014	€	2,750.0	1 mo. EURIBOR + 3.76%	6 mo. EURIBOR + 3.52%
December 2014	€	971.8	6 mo. EURIBOR	2.97%
July 2020	€	750.0	6.38%	6 mo. EURIBOR + 3.16%
January 2015 - January 2021	€	750.0	6 mo. EURIBOR	2.57%
July 2013 - December 2014	€	500.0	6 mo. EURIBOR	4.67%
January 2015 - December 2016	€	500.0	6 mo. EURIBOR	4.32%
July 2014	€	337.0	6 mo. EURIBOR	3.94%
January 2015 - January 2023	€	290.0	6 mo. EURIBOR	2.79%
December 2015	€	263.3	6 mo. EURIBOR	3.97%
January 2023	€	210.0	6 mo. EURIBOR	2.88%
January 2014	€	185.0	6 mo. EURIBOR	4.04%
January 2015 - January 2018	€	175.0	6 mo. EURIBOR	3.74%
July 2020	€	171.3	6 mo. EURIBOR	4.32%
January 2015 - July 2020	€	171.3	6 mo. EURIBOR	3.95%
January 2015 - November 2021	€	107.0	6 mo. EURIBOR	2.89%
December 2013	€	90.5	6 mo. EURIBOR	0.90%
December 2014	CHF	2,380.0	6 mo. CHF LIBOR	2.81%
January 2015 - January 2022	CHF	711.5	6 mo. CHF LIBOR	1.89%
January 2015 - January 2021	CHF	500.0	6 mo. CHF LIBOR	1.65%
January 2015 - January 2018	CHF	400.0	6 mo. CHF LIBOR	2.51%
January 2015 - December 2016	CHF	370.9	6 mo. CHF LIBOR	3.82%
January 2015 - November 2019	CHF	226.8	6 mo. CHF LIBOR + 5.01%	6.88%
July 2013	CLP	61,500.0	6.77%	6 mo. TAB
Telenet International Finance S.a.r.l (Telenet International):
July 2017 - July 2019	€	600.0	3 mo. EURIBOR	3.29%
August 2015	€	350.0	3 mo. EURIBOR	3.54%
August 2015 - December 2018	€	305.0	3 mo. EURIBOR	2.46%



Subsidiary / Final maturity date (a)	Notional amount		Interest rate due from counterparty	Interest rate due to counterparty
	in millions
December 2015 - June 2021	€	250.0	3 mo. EURIBOR	3.49%
July 2019	€	200.0	3 mo. EURIBOR	3.55%
July 2017	€	150.0	3 mo. EURIBOR	3.55%
July 2017 - December 2018	€	70.0	3 mo. EURIBOR	3.00%
June 2021	€	55.0	3 mo. EURIBOR	2.29%
June 2015	€	50.0	3 mo. EURIBOR	3.55%
December 2017	€	50.0	3 mo. EURIBOR	3.52%
December 2015 - July 2019	€	50.0	3 mo. EURIBOR	3.40%
December 2017 - July 2019	€	50.0	3 mo. EURIBOR	2.99%
July 2017 - June 2021	€	50.0	3 mo. EURIBOR	3.00%
August 2015 - June 2021	€	45.0	3 mo. EURIBOR	3.20%
VTR:
July 2013	CLP	61,500.0	6 mo. TAB	7.78%

_______________

(a)

Interest Rate Cap [Member]

Derivative [Line Items]

Schedule of Derivative Instruments

Interest Rate Caps

Our purchased and sold interest rate cap contracts with respect to EURIBOR are detailed below:



	June 30, 2013
Subsidiary / Final maturity date (a)	Notional amount		EURIBOR cap rate
	in millions
Interest rate caps purchased (b):
Liberty Global Europe Financing BV (LGE Financing), the immediate parent of UPC Holding:
January 2015 - January 2020	€	735.0	7.00%
Telenet International:
June 2015 - June 2017	€	50.0	4.50%
Telenet NV, a subsidiary of Telenet:
December 2017	€	1.9	6.50%
December 2017	€	1.9	5.50%

Interest rate cap sold (c):
UPC Broadband Holding:
January 2015 - January 2020	€	735.0	7.00%

_______________

(a)

For each subsidiary, the notional amount of multiple derivative instruments that mature within the same calendar month are shown in the aggregate. For derivative instruments that were in effect as of June 30, 2013, we present a single date that represents the applicable final maturity date. For derivative instruments that become effective subsequent to June 30, 2013, we present a range of dates that represents the period covered by the applicable derivative instrument.


(b)	Our purchased interest rate caps entitle us to receive payments from the counterparty when EURIBOR exceeds the EURIBOR cap rate.


(c)	Our sold interest rate cap requires that we make payments to the counterparty when EURIBOR exceeds the EURIBOR cap rate.

Interest Rate Collar [Member] | Telenet International [Member]

Derivative [Line Items]

Schedule of Derivative Instruments

Interest Rate Collars

Our interest rate collar contracts establish floor and cap rates with respect to EURIBOR on the indicated notional amounts, as detailed below:



	June 30, 2013
Subsidiary / Final maturity date (a)	Notional amount		EURIBOR floor rate (b)	EURIBOR cap rate (c)
	in millions
UPC Broadband Holding:
January 2015 - January 2020	€	1,135.0	1.00%	3.54%
Telenet International:
July 2017	€	950.0	2.00%	4.00%

_______________

(a)


(b)	We make payments to the counterparty when EURIBOR is less than the EURIBOR floor rate.


(c)	We receive payments from the counterparty when EURIBOR is greater than the EURIBOR cap rate.

Foreign Exchange Option [Member] | UPC Holding

Derivative [Line Items]

Schedule of Derivative Instruments

UPC Holding Cross-Currency Options

Pursuant to its cross-currency option contracts, UPC Holding has the option to deliver U.S. dollars to the counterparty in exchange for Swiss francs at a fixed exchange rate of 0.7354 Swiss francs per one U.S. dollar, in the notional amounts listed below:



	Notional amount at
Contract expiration date	June 30, 2013
	in millions

April 2018	$	419.8
October 2016	$	19.8
April 2017	$	19.8
October 2017	$	19.8

Foreign currency forward contracts

Derivative [Line Items]

Schedule of Derivative Instruments

Foreign Currency Forwards

The following table summarizes our outstanding foreign currency forward contracts at June 30, 2013:



Subsidiary	Currency purchased forward		Currency sold forward		Maturity dates
	in millions

LGE Financing	$	854.9	€	654.8	July 2013 - July 2014
UPC Holding	$	479.0	CHF	415.1	October 2016 - April 2018
UPC Broadband Holding	$	3.3	CZK	64.1	July 2013 - July 2014
UPC Broadband Holding	€	57.8	CHF	70.9	July 2013 - July 2014
UPC Broadband Holding	€	18.8	CZK	484.2	July 2013 - July 2014
UPC Broadband Holding	€	18.3	HUF	5,525.0	July 2013 - July 2014
UPC Broadband Holding	€	52.1	PLN	228.6	July 2013 - July 2014
UPC Broadband Holding	£	3.9	€	4.7	July 2013 - July 2014
UPC Broadband Holding	CZK	246.0	€	9.5	July 2013
UPC Broadband Holding	HUF	6,500.0	€	22.0	July 2013
UPC Broadband Holding	PLN	105.0	€	24.1	July 2013
UPC Broadband Holding	RON	30.0	€	6.7	July 2013
Telenet NV	$	53.0	€	40.7	July 2013 - September 2014
VTR	$	28.6	CLP	14,286.5	July 2013 - May 2014

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details