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Share-based Compensation (Tables)
 6 Months Ended
Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Summary of stock-based compensation
The following table summarizes our share-based compensation expense: 
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013
 
2014
 
2013
 
in millions
Liberty Global shares:
 
 
 
 
 
 
 
Performance-based incentive awards (a)
$
23.2

 
$
7.8

 
$
43.8

 
$
11.9

Other share-based incentive awards
22.2

 
49.8

 
52.4

 
61.0

Total Liberty Global shares (b)
45.4

 
57.6

 
96.2

 
72.9

Telenet share-based incentive awards (c)
7.8

 
36.5

 
10.7

 
47.5

Other
1.2

 
(0.2
)
 
2.6

 
0.3

Total
$
54.4

 
$
93.9

 
$
109.5

 
$
120.7

Included in:
 
 
 
 
 
 
 
Continuing operations:
 
 
 
 
 
 
 
Operating expense
$
3.6

 
$
6.0

 
$
4.9

 
$
9.9

SG&A expense
50.8

 
87.4

 
104.6

 
109.8

Total - continuing operations
54.4

 
93.4

 
109.5

 
119.7

Discontinued operation
—

 
0.5

 
—

 
1.0

Total
$
54.4

 
$
93.9

 
$
109.5

 
$
120.7

_______________

(a)
Includes share-based compensation expense related to (i) Liberty Global performance-based restricted share units (PSUs), (ii) the challenge performance award plan (the Challenge Performance Awards), which awards were issued on June 24, 2013, and (iii) for the 2014 periods, the PGUs, as defined and described below.

(b)
In connection with the Virgin Media Acquisition, we issued Liberty Global share-based incentive awards (Virgin Media Replacement Awards) to employees and former directors of Virgin Media in exchange for corresponding Virgin Media awards. Virgin Media recorded share-based compensation expense of $12.1 million and $31.4 million during the three and six months ended June 30, 2014, respectively, including compensation expense related to the Virgin Media Replacement Awards and new awards that were granted after the Virgin Media Replacement Awards were issued. During the post-acquisition period ended June 30, 2013, Virgin Media recorded share-based compensation expense of $35.9 million, primarily related to the Virgin Media Replacement Awards, including $25.9 million that was charged to expense in recognition of the Virgin Media Replacement Awards that were fully vested on June 7, 2013 or for which vesting was accelerated pursuant to the terms of the Virgin Media Merger Agreement on or prior to June 30, 2013.

(c)
During the second quarter of 2013, Telenet modified the terms of certain of its share-based incentive plans to provide for anti-dilution adjustments in connection with its shareholder returns. In connection with these anti-dilution adjustments, Telenet recognized share-based compensation expense of $32.7 million and continues to recognize additional share-based compensation expense as the underlying options vest. In addition, during the first quarter of 2013, Telenet recognized expense of $6.2 million related to the accelerated vesting of options granted under the Telenet 2010 specific stock option plan (Telenet 2010 SSOP).
Summary of stock compensation not recognized
The following table provides certain information related to share-based compensation not yet recognized for share incentive awards related to Liberty Global ordinary shares and Telenet ordinary shares as of June 30, 2014: 
 
Liberty Global
ordinary shares (a)
 
Liberty Global performance-based awards (b)
 
Telenet ordinary shares (c)
 
 
 
 
 
 
Total compensation expense not yet recognized (in millions)
$
166.6

 
$
234.0

 
$
7.3

Weighted average period remaining for expense recognition (in years)
2.8

 
1.8

 
2.4

_______________

(a)
Amounts relate to awards granted or assumed by Liberty Global under (i) the Liberty Global 2014 Incentive Plan, (ii) the Liberty Global 2014 Nonemployee Director Incentive Plan, (iii) the Liberty Global, Inc. 2005 Incentive Plan (as amended and restated effective June 7, 2013) (the Liberty Global 2005 Incentive Plan), (iv) the Liberty Global, Inc. 2005 Nonemployee Director Incentive Plan (as amended and restated effective June 7, 2013) (the Liberty Global 2005 Director Incentive Plan), (v) the Virgin Media Inc. 2010 Stock Incentive Plan (as amended and restated effective June 7, 2013) (the VM Incentive Plan) and (vi) certain other incentive plans of Virgin Media pursuant to which awards may no longer be granted. On January 30, 2014, our shareholders approved the Liberty Global 2014 Incentive Plan and the Liberty Global 2014 Nonemployee Director Incentive Plan and, accordingly, no further awards will be granted under the Liberty Global 2005 Incentive Plan, the Liberty Global 2005 Director Incentive Plan or the VM Incentive Plan.

(b)
Amounts relate to (i) the Challenge Performance Awards, which include performance-based share appreciation rights (PSARs) and PSUs that were granted in June 2013, (ii) PSUs and (iii) the PGUs, as defined and described below.

(c)
Amounts relate to various equity incentive awards granted to employees of Telenet.
Stock compensation assumptions
The following table summarizes certain information related to the incentive awards granted and exercised with respect to Liberty Global ordinary shares:
 
Six months ended
 
June 30,
 
2014
 
2013
Assumptions used to estimate fair value of options, share appreciation rights (SARs) and PSARs granted:
 
 
 
Risk-free interest rate
0.81 - 1.77%
 
0.36 - 1.27%
Expected life (a)
3.1 - 5.1 years
 
3.2 - 7.1 years
Expected volatility (a)
25.5 -28.7%
 
26.9 - 35.8%
Expected dividend yield
none
 
none
Weighted average grant-date fair value per share of awards granted:
 
 
 
Options
$
11.40

 
$
11.09

SARs
$
8.95

 
$
8.35

PSARs
$
8.15

 
$
8.32

Restricted share units (RSUs)
$
39.72

 
$
35.60

PSUs and PGUs
$
42.48

 
$
34.89

Total intrinsic value of awards exercised (in millions):
 
 
 
Options
$
43.7

 
$
35.3

SARs
$
17.7

 
$
30.6

PSARs
$
0.2

 
$
—

Cash received from exercise of options (in millions)
$
23.9

 
$
14.3

Income tax benefit related to share-based compensation (in millions)
$
20.1

 
$
15.7


____________

(a)
The 2013 ranges shown for these assumptions exclude the awards for certain former employees of Virgin Media who were expected to exercise their awards immediately or soon after the Virgin Media Acquisition. For these awards, the assumptions used for expected life and volatility were essentially nil.
Employee Stock Option [Member] | Class A Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of stock option activity
The following tables summarize the share-based award activity during the six months ended June 30, 2014 with respect to Liberty Global ordinary shares:
Options — Class A ordinary shares
Number of
shares
 
Weighted
average
exercise price
 
Weighted
average
remaining
contractual
term
 
Aggregate
intrinsic  value
 
 
 
 
 
in years
 
in millions
Outstanding at January 1, 2014
2,708,445

 
$
16.12

 
 
 
 
Granted
78,677

 
$
42.54

 
 
 
 
Cancelled
(34,856
)
 
$
21.51

 
 
 
 
Exercised
(423,750
)
 
$
16.38

 
 
 
 
Outstanding at June 30, 2014
2,328,516

 
$
16.89

 
5.7
 
$
63.6

Exercisable at June 30, 2014
1,393,587

 
$
13.50

 
4.5
 
$
42.8
Employee Stock Option [Member] | Class C Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of stock option activity
Options — Class C ordinary shares
Number of
shares
 
Weighted
average
exercise price
 
Weighted
average
remaining
contractual
term
 
Aggregate
intrinsic  value
 
 
 
 
 
in years
 
in millions
Outstanding at January 1, 2014
7,031,369

 
$
14.95

 
 
 
 
Granted
157,346

 
$
40.86

 
 
 
 
Cancelled
(86,164
)
 
$
20.16

 
 
 
 
Exercised
(1,147,771
)
 
$
14.30

 
 
 
 
Outstanding at June 30, 2014
5,954,780

 
$
15.68

 
5.6
 
$
158.6

Exercisable at June 30, 2014
3,628,006

 
$
12.66

 
4.4
 
$
107.6
Stock Appreciation Rights (SARs) [Member] | Class A Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of other share based compensation activity
SARs — Class A ordinary shares
Number of
shares
 
Weighted
average
base price
 
Weighted
average
remaining
contractual
term
 
Aggregate
intrinsic  value
 
 
 
 
 
in years
 
in millions
Outstanding at January 1, 2014
4,168,758

 
$
24.78

 
 
 
 
Granted
2,117,808

 
$
40.91

 
 
 
 
Forfeited
(120,843
)
 
$
29.49

 
 
 
 
Exercised
(217,826
)
 
$
20.46

 
 
 
 
Outstanding at June 30, 2014
5,947,897

 
$
30.57

 
5.2
 
$
81.2

Exercisable at June 30, 2014
2,197,247

 
$
19.99

 
3.6
 
$
53.2
Stock Appreciation Rights (SARs) [Member] | Class C Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of other share based compensation activity
SARs — Class C ordinary shares
Number of
shares
 
Weighted
average
base price
 
Weighted
average
remaining
contractual
term
 
Aggregate
intrinsic  value
 
 
 
 
 
in years
 
in millions
Outstanding at January 1, 2014
12,437,530

 
$
23.87

 
 
 
 
Granted
4,235,616

 
$
39.09

 
 
 
 
Forfeited
(359,164
)
 
$
28.86

 
 
 
 
Exercised
(598,149
)
 
$
20.51

 
 
 
 
Outstanding at June 30, 2014
15,715,833

 
$
27.99

 
5.0
 
$
225.2

Exercisable at June 30, 2014
6,578,331

 
$
19.36

 
3.6
 
$
151.0
Performance Stock Appreciation Rights (PSARs) [Member] | Class A Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of other share based compensation activity
PSARs — Class A ordinary shares
Number of
shares
 
Weighted
average
base price
 
Weighted
average
remaining
contractual
term
 
Aggregate
intrinsic  value
 
 
 
 
 
in years
 
in millions
Outstanding at January 1, 2014
2,817,498

 
$
35.07

 
 
 
 
Granted
10,000

 
$
43.59

 
 
 
 
Exercised
(6,248
)
 
$
35.03

 
 
 
 
Outstanding at June 30, 2014
2,821,250

 
$
35.10

 
6.0
 
$
25.7

Exercisable at June 30, 2014
—

 
$
—

 
—
 
$
—
Performance Stock Appreciation Rights (PSARs) [Member] | Class C Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of other share based compensation activity
PSARs — Class C ordinary shares
Number of
shares
 
Weighted
average
base price
 
Weighted
average
remaining
contractual
term
 
Aggregate
intrinsic  value
 
 
 
 
 
in years
 
in millions
Outstanding at January 1, 2014
8,452,494

 
$
33.44

 
 
 
 
Granted
30,000

 
$
43.03

 
 
 
 
Exercised
(18,744
)
 
$
33.41

 
 
 
 
Outstanding at June 30, 2014
8,463,750

 
$
33.48

 
6.0
 
$
76.1

Exercisable at June 30, 2014
—

 
$
—

 
—
 
$
—
Restricted Stock Units (RSUs) [Member] | Class A Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of other share based compensation activity
RSUs — Class A ordinary shares
Number of
shares
 
Weighted
average
grant-date
fair value
per share
 
Weighted
average
remaining
contractual
term
 
 
 
 
 
in years
Outstanding at January 1, 2014
725,676

 
$
35.48

 
 
Granted
197,968

 
$
40.93

 
 
Forfeited
(32,834
)
 
$
31.65

 
 
Released from restrictions
(222,782
)
 
$
34.80

 
 
Outstanding at June 30, 2014
668,028

 
$
37.39

 
5.1
Restricted Stock Units (RSUs) [Member] | Class C Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of other share based compensation activity
RSUs — Class C ordinary shares
Number of
shares
 
Weighted
average
grant-date
fair value
per share
 
Weighted
average
remaining
contractual
term
 
 
 
 
 
in years
Outstanding at January 1, 2014
1,944,468

 
$
32.79

 
 
Granted
395,936

 
$
39.11

 
 
Forfeited
(94,513
)
 
$
29.61

 
 
Released from restrictions
(596,121
)
 
$
32.11

 
 
Outstanding at June 30, 2014
1,649,770

 
$
34.63

 
5.0
PSUs / PGUs [Member] | Class A Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of other share based compensation activity
PSUs and PGUs — Class A ordinary shares
Number of
shares
 
Weighted
average
grant-date
fair value
per share
 
Weighted
average
remaining
contractual
term
 
 
 
 
 
in years
Outstanding at January 1, 2014
924,648

 
$
32.05

 
 
Granted
1,503,128

 
$
42.78

 
 
Performance adjustment (a)
(138,668
)
 
$
26.17

 
 
Forfeited
(14,085
)
 
$
30.54

 
 
Released from restrictions
(141,499
)
 
$
26.50

 
 
Outstanding at June 30, 2014
2,133,524

 
$
39.14

 
2.1
PSUs / PGUs [Member] | Class B Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of other share based compensation activity
PGUs — Class B ordinary shares
Number of
shares
 
Weighted
average
grant-date
fair value
per share
 
Weighted
average
remaining
contractual
term
 
 
 
 
 
in years
Outstanding at January 1, 2014
—

 
$
—

 
 
Granted
1,000,000

 
$
44.55

 
 
Outstanding at June 30, 2014
1,000,000

 
$
44.55

 
2.7
PSUs / PGUs [Member] | Class C Ordinary Shares [Member]
  
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]  
Schedule of other share based compensation activity
PSUs — Class C ordinary shares
Number of
shares
 
Weighted
average
grant-date
fair value
per share
 
Weighted
average
remaining
contractual
term
 
 
 
 
 
in years
Outstanding at January 1, 2014
2,744,452

 
$
29.99

 
 
Granted
1,007,344

 
$
39.97

 
 
Performance adjustment (a)
(416,004
)
 
$
24.73

 
 
Forfeited
(42,255
)
 
$
28.65

 
 
Released from restrictions
(424,497
)
 
$
25.02

 
 
Outstanding at June 30, 2014
2,869,040

 
$
35.01

 
1.5
_______________

(a)
Represents the reduction in PSUs associated with the first quarter 2014 determination that 66.3% of the PSUs that were granted in 2012 (the 2012 PSUs) had been earned. Half of the earned 2012 PSUs were released from restrictions on March 31, 2014 and, subject to forfeitures, the remainder will be released from restrictions on September 30, 2014.