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Derivative Instruments (Tables)
 6 Months Ended
Jun. 30, 2014
Derivative [Line Items]  
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, 2014
 
December 31, 2013
 
Current
 
Long-term (a)
 
Total
 
Current
 
Long-term (a)
 
Total
 
in millions
Assets:
 
 
 
 
 
 
 
 
 
 
 
Cross-currency and interest rate derivative contracts (b)
$
497.3

 
$
483.3

 
$
980.6

 
$
248.4

 
$
520.8

 
$
769.2

Equity-related derivative instruments (c)
—

 
425.1

 
425.1

 
—

 
430.4

 
430.4

Foreign currency forward contracts
1.3

 
—

 
1.3

 
2.6

 
—

 
2.6

Other
0.6

 
1.5

 
2.1

 
1.1

 
0.9

 
2.0

Total
$
499.2

 
$
909.9

 
$
1,409.1

 
$
252.1

 
$
952.1

 
$
1,204.2

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Cross-currency and interest rate derivative contracts (b)
$
1,163.5

 
$
2,271.2

 
$
3,434.7

 
$
727.2

 
$
2,191.4

 
$
2,918.6

Equity-related derivative instruments (c)
105.1

 
—

 
105.1

 
15.6

 
101.3

 
116.9

Foreign currency forward contracts
2.6

 
—

 
2.6

 
8.2

 
12.0

 
20.2

Other
0.2

 
0.1

 
0.3

 
0.2

 
0.6

 
0.8

Total
$
1,271.4

 
$
2,271.3

 
$
3,542.7

 
$
751.2

 
$
2,305.3

 
$
3,056.5

_______________ 

(a)
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, 2014 and December 31, 2013, (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 $7.7 million and $9.8 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 $122.6 million and $173.0 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 $19.4 million and $13.0 million during the three months ended June 30, 2014 and 2013, respectively, and net losses of $48.9 million and $45.5 million during the six months ended June 30, 2014 and 2013, 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 6.

(c)
Our equity-related derivative instruments include the fair value of (i) the Ziggo Collar with respect to the Ziggo shares held by our company, (ii) the share collar (the Sumitomo Collar) with respect to the Sumitomo shares held by our company and (iii) Virgin Media’s conversion hedges (the Virgin Media Capped Calls) with respect to the VM Convertible Notes, as defined and described in note 8. The fair values of the Ziggo Collar and the Sumitomo Collar do not include credit risk valuation adjustments as we have assumed that any losses incurred by our company in the event of nonperformance by the respective counterparty would be, subject to relevant insolvency laws, fully offset against amounts we owe to such counterparty pursuant to the secured borrowing arrangements of the Ziggo Collar and Sumitomo Collar. For additional information regarding the Ziggo Collar, see note 4.

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,
 
2014
 
2013
 
2014
 
2013
 
in millions
 
 
 
 
 
 
 
 
Cross-currency and interest rate derivative contracts
$
(285.7
)
 
$
162.4

 
$
(705.9
)

$
343.0

Equity-related derivative instruments:
 
 
 
 





Sumitomo Collar
(23.8
)
 
(52.4
)
 
(15.3
)

(140.1
)
Ziggo Collar
(21.3
)
 
—

 
(5.9
)
 
—

Virgin Media Capped Calls
0.7

 
(9.4
)
 
0.9


(9.4
)
Total equity-related derivative instruments
(44.4
)
 
(61.8
)
 
(20.3
)

(149.5
)
Foreign currency forward contracts
0.4

 
(103.5
)
 
20.4


(1.1
)
Other
1.1

 
(0.5
)
 
0.6


(0.3
)
Total
$
(328.6
)
 
$
(3.4
)
 
$
(705.2
)

$
192.1
Schedule of Cash Received (Paid) Related to Derivative Instruments Statement of Cash Flows Location
The classification of these cash outflows are as follows: 
 
Six months ended
 
June 30,
 
2014
 
2013
 
in millions
Operating activities
$
(248.5
)
 
$
(211.8
)
Investing activities
—

 
(15.4
)
Financing activities
(177.6
)
 
(4.4
)
Total
$
(426.1
)
 
$
(231.6
)
Cross-currency and interest rate derivative contracts
  
Derivative [Line Items]  
Schedule of Derivative Instruments
The terms of our outstanding cross-currency swap contracts at June 30, 2014 are as follows:
Subsidiary /
Final maturity date
 
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%
 
5.49%
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%
January 2021
 
$
500.0

 
£
308.9

 
5.25%
 
6 mo. GBP LIBOR + 2.06%
October 2019
 
$
500.0

 
£
302.3

 
8.38%
 
9.07%
January 2022
 
$
425.0

 
£
255.8

 
5.50%
 
5.82%
April 2019
 
$
291.5

 
£
186.2

 
5.38%
 
5.49%
November 2016 (a)
 
$
55.0

 
£
27.7

 
6.50%
 
7.03%
UPC Broadband Holding BV (UPC Broadband Holding), a subsidiary of UPC Holding:
 
 
 
 
 
 
 
 
 
July 2018
 
$
525.0

 
€
396.3

 
6 mo. LIBOR + 1.99%
 
6.25%
September 2014
 
$
440.0

 
€
316.3

 
6 mo. LIBOR
 
6 mo. EURIBOR - 0.04%
December 2014
 
$
340.0

 
€
244.6

 
6 mo. LIBOR
 
6 mo. EURIBOR
September 2014 - January 2020
 
$
327.5

 
€
249.5

 
6 mo. LIBOR + 4.92%
 
7.52%
January 2015 - July 2021
 
$
312.0

 
€
240.0

 
6 mo. LIBOR + 2.50%
 
6 mo. EURIBOR + 2.87%
January 2015
 
$
300.0

 
€
226.5

 
6 mo. LIBOR + 1.75%
 
5.78%
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%
November 2019
 
$
250.0

 
€
181.5

 
7.25%
 
7.74%
November 2021
 
$
250.0

 
€
181.4

 
7.25%
 
7.50%
December 2014 - July 2018
 
$
200.0

 
€
151.0

 
6 mo. LIBOR + 3.00%
 
7.31%
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%
January 2015 - July 2018
 
$
100.0

 
€
75.4

 
6 mo. LIBOR + 1.75%
 
5.77%
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%
November 2019
 
$
250.0

 
CHF
226.8

 
7.25%
 
6 mo. CHF LIBOR + 5.01%
Subsidiary /
Final maturity date
 
Notional
amount
due from
counterparty
 
Notional
amount
due to
counterparty
 
Interest rate
due from
counterparty
 
Interest rate
due to
counterparty
 
 
in millions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
January 2020
 
$
225.0

 
CHF
206.3

 
6 mo. LIBOR + 4.81%
 
5.44%
January 2015 - July 2021
 
$
200.0

 
CHF
186.0

 
6 mo. LIBOR + 2.50%
 
6 mo. CHF LIBOR + 2.55%
January 2015
 
$
171.5

 
CHF
187.1

 
6 mo. LIBOR + 2.75%
 
6 mo. CHF LIBOR + 2.95%
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%
January 2015
 
€
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%
January 2015 - January 2017
 
€
360.4

 
CHF
589.0

 
6 mo. EURIBOR + 3.75%
 
6 mo. CHF LIBOR + 3.94%
April 2018
 
€
285.1

 
CHF
346.7

 
10.51%
 
9.87%
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%
December 2014
 
€
134.2

 
CLP
107,800.0

 
6 mo. EURIBOR + 2.00%
 
10.00%
December 2015
 
€
69.1

 
CLP
53,000.0

 
3.50%
 
5.75%
January 2015
 
€
365.8

 
CZK
10,521.8

 
5.48%
 
5.99%
January 2015 - January 2017
 
€
60.0

 
CZK
1,703.1

 
5.50%
 
6.99%
July 2017
 
€
39.6

 
CZK
1,000.0

 
3.00%
 
3.75%
January 2015
 
€
260.0

 
HUF
75,570.0

 
5.50%
 
9.40%
January 2015 - January 2017
 
€
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%
January 2015
 
€
400.5

 
PLN
1,605.6

 
5.50%
 
7.50%
January 2015 - January 2017
 
€
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%
December 2014
 
CLP 181,322.0

 
$
340.0

 
8.76%
 
6 mo. LIBOR + 1.75%
December 2014
 
CLP 107,800.0

 
EUR
134.2

 
10.00%
 
6 mo. EURIBOR + 2.00%
December 2015
 
CLP 53,000.0

 
EUR
69.1

 
5.75%
 
3.50%
Unitymedia Hessen GmbH & Co. KG, 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%
 
 
 
 
 
 
 
 
 
 
VTR GlobalCom:
 
 
 
 
 
 
 
 
 
January 2022
 
$
1,400.0

 
CLP
760,340.0

 
6.88%
 
10.94%
Subsidiary /
Final maturity date
 
Notional
amount
due from
counterparty
 
Notional
amount
due to
counterparty
 
Interest rate
due from
counterparty
 
Interest rate
due to
counterparty
 
 
in millions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 2014
 
$
134.9

 
CLP
74,639.5

 
6 mo. LIBOR + 3.00%
 
11.34%
September 2014
 
CLP 74,639.5

 
$
134.9

 
11.34%
 
6 mo. LIBOR + 3.00%
_______________ 

(a)
Unlike the other cross-currency swaps presented in this table, the identified cross-currency swap does not involve the exchange of notional amounts at the inception and maturity of the instrument.  Accordingly, the only cash flows associated with this instrument are interest payments and receipts.
Interest Rate Swap [Member]
  
Derivative [Line Items]  
Schedule of Derivative Instruments
The terms of our outstanding interest rate swap contracts at June 30, 2014 are as follows:
Subsidiary / Final maturity date
 
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%
January 2021
 
£
650.0

 
6 mo. GBP LIBOR + 1.84%
 
3.87%
December 2015
 
£
600.0

 
6 mo. GBP LIBOR
 
2.90%
April 2018
 
£
300.0

 
6 mo. GBP LIBOR
 
1.37%
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 2015
 
€
1,554.0

 
1 mo. EURIBOR + 3.75%
 
6 mo. EURIBOR + 3.56%
January 2015
 
€
1,364.8

 
6 mo. EURIBOR
 
3.44%
July 2020
 
€
750.0

 
6.38%
 
6 mo. EURIBOR + 3.16%
January 2015 - January 2021
 
€
750.0

 
6 mo. EURIBOR
 
2.57%
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 2015 - January 2018
 
€
175.0

 
6 mo. EURIBOR
 
3.74%
January 2015 - July 2020
 
€
171.3

 
6 mo. EURIBOR
 
3.95%
July 2020
 
€
171.3

 
6 mo. EURIBOR
 
4.32%
December 2014
 
€
107.0

 
6 mo. EURIBOR
 
4.73%
January 2015 - November 2021
 
€
107.0

 
6 mo. EURIBOR
 
2.89%
January 2015
 
CHF
2,380.0

 
6 mo. CHF LIBOR
 
2.81%
January 2015 - January 2022
 
CHF
711.5

 
6 mo. CHF LIBOR
 
1.89%
Subsidiary / Final maturity date
 
Notional amount
 
Interest rate due from
counterparty
 
Interest rate due to
counterparty
 
 
in millions
 
 
 
 
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%
Telenet International Finance S.a.r.l (Telenet International), a subsidiary of Telenet:
 
 
 
 
 
 
 
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%
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%
Interest Rate Cap [Member]
  
Derivative [Line Items]  
Schedule of Derivative Instruments
Our purchased and sold interest rate cap contracts with respect to EURIBOR at June 30, 2014 are detailed below:
Subsidiary / Final maturity date
 
Notional  amount
 
EURIBOR cap rate
 
 
in millions
 
 
Interest rate caps purchased (a):
 
 
 
 
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
€
1.1

 
6.50%
December 2017
€
1.1

 
5.50%
 
 
 
 
 
Interest rate cap sold (b):
 
 
 
 
UPC Broadband Holding:
 
 
 
January 2015 - January 2020
€
735.0

 
7.00%
 _______________

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

(b)
Our sold interest rate cap requires that we make payments to the counterparty when EURIBOR exceeds the EURIBOR cap rate.
Interest Rate Collar [Member]
  
Derivative [Line Items]  
Schedule of Derivative Instruments
Our interest rate collar contracts establish floor and cap rates with respect to EURIBOR on the indicated notional amounts at June 30, 2014, as detailed below:
Subsidiary / Final maturity date
 
Notional
amount
 
EURIBOR floor rate (a)
 
EURIBOR cap rate (b)
 
 
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)
We make payments to the counterparty when EURIBOR is less than the EURIBOR floor rate.

(b)
We receive payments from the counterparty when EURIBOR is greater than the EURIBOR cap rate.
Foreign Exchange Forward [Member]
  
Derivative [Line Items]  
Schedule of Derivative Instruments
Foreign Currency Forwards

The following table summarizes our outstanding foreign currency forward contracts at June 30, 2014:
Subsidiary
 
Currency
purchased
forward
 
Currency
sold
forward
 
Maturity dates
 
 
in millions
 
 
 
 
 
 
 
 
 
 
 
LGE Financing
$
1.5

 
€
1.1

 
July 2014 - October 2014
UPC Broadband Holding
$
2.3

 
CZK
44.5

 
July 2014 - March 2015
UPC Broadband Holding
€
45.3

 
CHF
55.4

 
July 2014 - June 2015
UPC Broadband Holding
€
13.5

 
CZK
361.2

 
July 2014 - March 2015
UPC Broadband Holding
€
12.4

 
HUF
3,825.0

 
July 2014 - March 2015
UPC Broadband Holding
€
36.0

 
PLN
155.2

 
July 2014 - March 2015
UPC Broadband Holding
£
2.7

 
€
3.3

 
July 2014 - March 2015
Telenet NV
$
24.5

 
€
18.0

 
July 2014 - December 2014
VTR GlobalCom
$
27.6

 
CLP
15,336.1

 
July 2014 - June 2015