Segment Reporting

We generally identify our reportable segments as those consolidated subsidiaries that represent 10% or more of our revenue, Adjusted OIBDA (as defined below) or total assets. In certain cases, we may elect to include an operating segment in our segment disclosure that does not meet the above-described criteria for a reportable segment. We evaluate performance and make decisions about allocating resources to our operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, we review non-financial measures such as subscriber growth, as appropriate.

Adjusted operating income before depreciation and amortization (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 annual and other incentive compensation plans. As we use the term, Adjusted OIBDA is defined as operating income before depreciation and amortization, share-based compensation, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Other operating items include (a) gains and losses on the disposition of long-lived assets, (b) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (c) other acquisition-related items, such as gains and losses on the settlement of contingent consideration. Our internal decision makers believe Adjusted OIBDA is a meaningful measure and is superior to available GAAP measures because it represents a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (1) readily view operating trends, (2) perform analytical comparisons and benchmarking between segments and (3) 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 measure 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, net earnings or loss, cash flow from operating activities and other GAAP measures of income or cash flows. A reconciliation of total segment Adjusted OIBDA to our loss before income taxes is presented below.

We began presenting our operating segment in Puerto Rico as a separate reportable segment during the second quarter of 2015 in anticipation of the issuance of the LiLAC Shares. Previously, this operating segment was included in our corporate and other category. Segment information for all periods presented reflects the above-described change.

As of March 31, 2016, our reportable segments are as follows:


•	European Operations Division:


•	U.K./Ireland


•	The Netherlands


•	Germany


•	Belgium


•	Switzerland/Austria


•	Central and Eastern Europe


•	LiLAC Division:


•	Chile


•	Puerto Rico

All of the reportable segments set forth above derive their revenue primarily from broadband communications services, including video, broadband internet and fixed-line telephony services. Most of our reportable segments also provide B2B and mobile services. At March 31, 2016, our operating segments in the European Operations Division provided broadband communications services in 12 European countries and DTH services to customers in the Czech Republic, Hungary, Romania and Slovakia through a Luxembourg-based organization that we refer to as “UPC DTH.” In addition to UPC DTH, our Central and Eastern Europe segment includes our broadband communications operations in the Czech Republic, Hungary, Poland, Romania and Slovakia. The European Operations Division’s central and other category includes (i) costs associated with certain centralized functions, including billing systems, network operations, technology, marketing, facilities, finance and other administrative functions, and (ii) intersegment eliminations within the European Operations Division. The corporate and other category for the Liberty Global Group includes less significant consolidated operating segments that provide programming and other services. Intersegment eliminations primarily represent the elimination of intercompany transactions between our broadband communications and programming operations.

Performance Measures of Our Reportable Segments

The amounts presented below represent 100% of each of our reportable segment’s revenue and Adjusted OIBDA. As we have the ability to control Telenet and Liberty Puerto Rico, we consolidate 100% of the revenue and expenses of these entities in our condensed consolidated statements of operations despite the fact that third parties own significant interests in these entities. The noncontrolling owners’ interests in the operating results of Telenet, Liberty Puerto Rico and other less significant majority-owned subsidiaries are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations.



	Revenue
	Three months ended March 31,
	2016			2015
	in millions
Liberty Global Group:
European Operations Division:
U.K./Ireland	$	1,686.5		$	1,711.4
The Netherlands	669.8			707.4
Germany	617.1			597.9
Belgium (a)	610.2			502.7
Switzerland/Austria	433.4			439.3
Total Western Europe	4,017.0			3,958.7
Central and Eastern Europe	266.1			268.2
Central and other	(2.4		)	(2.8		)
Total European Operations Division	4,280.7			4,224.1
Corporate and other	14.6			12.8
Intersegment eliminations (b)	(11.2		)	(7.8		)
Total Liberty Global Group	4,284.1			4,229.1
LiLAC Group:
Chile	200.0			208.8
Puerto Rico (c)	103.9			79.0
Total LiLAC Group	303.9			287.8
Total	$	4,588.0		$	4,516.9

_______________


(a)	The amount presented for the 2016 period includes the post-acquisition revenue of BASE from February 12, 2016 through March 31, 2016.


(b)	Amounts are primarily related to transactions between our European Operations Division and our programming operations.


(c)	The amount presented for the 2015 period excludes the revenue of Choice, which was acquired on June 3, 2015.



	Adjusted OIBDA
	Three months ended March 31,
	2016			2015
	in millions
Liberty Global Group:
European Operations Division:
U.K./Ireland	$	744.6		$	763.3
The Netherlands	367.9			367.9
Germany	379.4			364.0
Belgium (a)	269.8			247.0
Switzerland/Austria	258.1			248.8
Total Western Europe	2,019.8			1,991.0
Central and Eastern Europe	110.9			118.1
Central and other	(84.3		)	(67.9		)
Total European Operations Division	2,046.4			2,041.2
Corporate and other	(52.8		)	(52.1		)
Total Liberty Global Group	1,993.6			1,989.1
LiLAC Group:
LiLAC Division:
Chile	76.3			76.0
Puerto Rico (b)	46.8			33.5
Total LiLAC Division	123.1			109.5
Corporate and other	(1.2		)	(1.3		)
Total LiLAC Group	121.9			108.2
Total	$	2,115.5		$	2,097.3

_______________


(a)	The amount presented for the 2016 period includes the post-acquisition Adjusted OIBDA of BASE from February 12, 2016 through March 31, 2016.


(b)	The amount presented for the 2015 period excludes the Adjusted OIBDA of Choice, which was acquired on June 3, 2015.

The following table provides a reconciliation of total segment Adjusted OIBDA to loss before income taxes:



	Three months ended March 31,
	2016			2015
	in millions

Total segment Adjusted OIBDA	$	2,115.5		$	2,097.3
Share-based compensation expense	(69.0		)	(71.4		)
Depreciation and amortization	(1,435.5		)	(1,451.4		)
Impairment, restructuring and other operating items, net	(24.4		)	(17.0		)
Operating income	586.6			557.5
Interest expense	(619.3		)	(615.9		)
Realized and unrealized gains (losses) on derivative instruments, net	(508.7		)	618.5
Foreign currency transaction gains (losses), net	339.0			(1,035.6		)
Realized and unrealized gains (losses) due to changes in fair values of certain investments, net	(268.2		)	151.4
Losses on debt modification and extinguishment, net	(4.3		)	(274.5		)
Other income (expense), net	53.3			(1.0		)
Loss before income taxes	$	(421.6	)	$	(599.6	)

Property and Equipment Additions of our Reportable Segments

The property and equipment additions of our reportable segments (including capital additions financed under vendor financing or capital lease arrangements) are presented below and reconciled to the capital expenditure amounts included in our condensed consolidated statements of cash flows. For additional information concerning capital additions financed under vendor financing and capital lease arrangements, see note 7.



	Three months ended March 31,
	2016			2015
	in millions
Liberty Global Group:
European Operations Division:
U.K./Ireland	$	368.5		$	347.3
The Netherlands	140.1			120.8
Germany	127.0			142.9
Belgium (a)	98.9			63.2
Switzerland/Austria	58.4			56.6
Total Western Europe	792.9			730.8
Central and Eastern Europe	59.9			48.6
Central and other	68.6			50.3
Total European Operations Division	921.4			829.7
Corporate and other	4.1			39.1
Total Liberty Global Group	925.5			868.8
LiLAC Group:
Chile	52.4			40.4
Puerto Rico (b)	19.1			15.7
Total LiLAC Group	71.5			56.1
Total property and equipment additions	997.0			924.9
Assets acquired under capital-related vendor financing arrangements	(438.9		)	(295.0		)
Assets acquired under capital leases	(27.9		)	(62.0		)
Changes in current liabilities related to capital expenditures	106.9			93.3
Total capital expenditures	$	637.1		$	661.2

_______________


(a)	The amount presented for the 2016 period includes the post-acquisition property and equipment additions of BASE from February 12, 2016 through March 31, 2016.


(b)	The amount presented for the 2015 period excludes the property and equipment additions of Choice, which was acquired on June 3, 2015.

Revenue by Major Category

Our revenue by major category is set forth below:



	Three months ended March 31,
	2016		2015
	in millions
Subscription revenue (a):
Video	$	1,567.7	$	1,605.8
Broadband internet	1,280.9		1,232.9
Fixed-line telephony	752.1		796.2
Cable subscription revenue	3,600.7		3,634.9
Mobile (b)	293.2		251.7
Total subscription revenue	3,893.9		3,886.6
B2B revenue (c)	387.8		377.9
Other revenue (b) (d)	306.3		252.4
Total	$	4,588.0	$	4,516.9

_______________

(a)

Subscription revenue includes amounts received from subscribers for ongoing services, excluding installation fees and late fees. Subscription revenue from subscribers who purchase bundled services at a discounted rate is generally allocated proportionally to each service based on the standalone price for each individual service. As a result, changes in the standalone pricing of our cable and mobile products or the composition of bundles can contribute to changes in our product revenue categories from period to period.


(b)	Mobile subscription revenue excludes mobile interconnect revenue of $65.0 million and $54.4 million during the three months ended March 31, 2016 and 2015, respectively. Mobile interconnect revenue and revenue from mobile handset sales are included in other revenue.

(c)

B2B revenue includes revenue from business broadband internet, video, voice, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other operators. We also provide services to certain small or home office (SOHO) subscribers. SOHO subscribers pay a premium price to receive expanded service levels along with video, broadband internet, fixed-line telephony or mobile services that are the same or similar to the mass marketed products offered to our residential subscribers. Revenue from SOHO subscribers, which is included in cable subscription revenue, aggregated $86.8 million and $62.6 million during the three months ended March 31, 2016 and 2015, respectively.


(d)	Other revenue includes, among other items, interconnect, mobile handset sales, channel carriage fee and installation revenue.

Geographic Segments

The revenue of our geographic segments is set forth below:



	Three months ended March 31,
	2016		2015
	in millions
Liberty Global Group:
European Operations Division:
U.K.	$	1,578.5	$	1,612.0
The Netherlands	669.8		707.4
Germany	617.1		597.9
Belgium (a)	610.2		502.7
Switzerland	339.3		346.8
Ireland	108.0		99.4
Poland	96.6		101.0
Austria	94.1		92.5
Hungary	65.4		65.0
The Czech Republic	44.2		44.4
Romania	41.4		38.9
Slovakia	14.7		15.2
Other	1.4		0.9
Total European Operations Division	4,280.7		4,224.1
Other, including intersegment eliminations	3.4		5.0
Total Liberty Global Group	4,284.1		4,229.1
LiLAC Group:
Chile	200.0		208.8
Puerto Rico (b)	103.9		79.0
Total LiLAC Group	303.9		287.8
Total	$	4,588.0	$	4,516.9

_______________


(a)	The amount presented for the 2016 period includes the post-acquisition revenue of BASE from February 12, 2016 through March 31, 2016.


(b)	The amount presented for the 2015 period excludes the revenue of Choice, which was acquired on June 3, 2015.