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 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. A reconciliation of total segment Adjusted OIBDA to our earnings (loss) before income taxes is presented below.

As of June 30, 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:


•	CWC


•	Chile


•	Puerto Rico

All of the reportable segments set forth above derive their revenue primarily from consumer and B2B services, including video, broadband internet and fixed-line telephony services and, with the exception of Puerto Rico, mobile services. At June 30, 2016, our operating segments in the European Operations Division provided consumer and B2B 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. In addition, our LiLAC Division provides consumer and B2B services in (a) 18 countries, all but one of which are located in Latin America and the Caribbean, through CWC, (b) Chile through VTR and (c) Puerto Rico through Liberty Puerto Rico. CWC also provides (1) B2B services in certain other countries in Latin America and the Caribbean and (2) wholesale services over its sub-sea and terrestrial networks that connect over 30 markets in that region. 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, Liberty Puerto Rico and certain subsidiaries of CWC that are not wholly owned, 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, certain subsidiaries of CWC 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. For additional information, see note 1.



	Revenue
	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
	in millions
Liberty Global Group:
European Operations Division:
U.K./Ireland	$	1,717.7		$	1,759.6		$	3,404.2		$	3,471.0
The Netherlands	678.8			683.9			1,348.6			1,391.3
Germany	643.5			591.0			1,260.6			1,188.9
Belgium (a)	707.3			500.3			1,317.5			1,003.0
Switzerland/Austria	447.0			448.8			880.4			888.1
Total Western Europe	4,194.3			3,983.6			8,211.3			7,942.3
Central and Eastern Europe	274.0			267.2			540.1			535.4
Central and other	(0.9		)	(1.0		)	(3.3		)	(3.8		)
Total European Operations Division	4,467.4			4,249.8			8,748.1			8,473.9
Corporate and other	15.2			12.8			29.8			25.6
Intersegment eliminations (b)	(11.4		)	(7.5		)	(22.6		)	(15.3		)
Total Liberty Global Group	4,471.2			4,255.1			8,755.3			8,484.2
LiLAC Group:
LiLAC Division:
CWC (c)	285.6			—			285.6			—
Chile	210.6			220.8			410.6			429.6
Puerto Rico (d)	106.9			90.6			210.8			169.6
Total LiLAC Division	603.1			311.4			907.0			599.2
Intersegment eliminations	(0.2		)	—			(0.2		)	—
Total LiLAC Group	602.9			311.4			906.8			599.2
Total	$	5,074.1		$	4,566.5		$	9,662.1		$	9,083.4

_______________


(a)	The amounts presented for the 2016 periods include the post-acquisition revenue of BASE, which was acquired on February 11, 2016.


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


(c)	The amounts presented for the 2016 periods reflect the post-acquisition revenue of CWC, which was acquired on May 16, 2016.


(d)	The amounts presented for the 2015 periods exclude the pre-acquisition revenue of Choice, which was acquired on June 3, 2015.



	Adjusted OIBDA
	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
	in millions
Liberty Global Group:
European Operations Division:
U.K./Ireland	$	765.5		$	805.6		$	1,510.1		$	1,568.9
The Netherlands	364.1			371.0			732.0			738.9
Germany	400.3			366.9			779.7			730.9
Belgium (a)	311.3			260.8			581.1			507.8
Switzerland/Austria	263.6			259.7			521.7			508.5
Total Western Europe	2,104.8			2,064.0			4,124.6			4,055.0
Central and Eastern Europe	114.6			118.4			225.5			236.5
Central and other	(82.1		)	(72.7		)	(166.4		)	(140.6		)
Total European Operations Division	2,137.3			2,109.7			4,183.7			4,150.9
Corporate and other	(62.7		)	(52.3		)	(115.5		)	(104.4		)
Total Liberty Global Group	2,074.6			2,057.4			4,068.2			4,046.5
LiLAC Group:
LiLAC Division:
CWC (b)	101.0			—			101.0			—
Chile	81.8			87.6			158.1			163.6
Puerto Rico (c)	50.0			40.8			96.8			74.3
Total LiLAC Division	232.8			128.4			355.9			237.9
Corporate and other	(1.7		)	(0.8		)	(2.9		)	(2.1		)
Total LiLAC Group	231.1			127.6			353.0			235.8
Total	$	2,305.7		$	2,185.0		$	4,421.2		$	4,282.3

_______________


(a)	The amounts presented for the 2016 periods include the post-acquisition Adjusted OIBDA of BASE, which was acquired on February 11, 2016.


(b)	The amounts presented for the 2016 periods reflect the post-acquisition Adjusted OIBDA of CWC, which was acquired on May 16, 2016.


(c)	The amounts presented for the 2015 periods exclude the pre-acquisition Adjusted OIBDA of Choice, which was acquired on June 3, 2015.

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



	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
	in millions

Total segment Adjusted OIBDA	$	2,305.7		$	2,185.0		$	4,421.2		$	4,282.3
Share-based compensation expense	(74.6		)	(56.6		)	(143.6		)	(128.0		)
Depreciation and amortization	(1,553.0		)	(1,477.8		)	(2,988.5		)	(2,929.2		)
Impairment, restructuring and other operating items, net	(190.3		)	(25.7		)	(214.7		)	(42.7		)
Operating income	487.8			624.9			1,074.4			1,182.4
Interest expense	(657.1		)	(600.8		)	(1,276.4		)	(1,216.7		)
Realized and unrealized gains (losses) on derivative instruments, net	1,052.0			(679.7		)	543.3			(61.2		)
Foreign currency transaction gains (losses), net	(298.1		)	340.4			40.9			(695.2		)
Realized and unrealized gains (losses) due to changes in fair values of certain investments and debt, net	(376.4		)	110.8			(644.6		)	262.2
Losses on debt modification and extinguishment, net	(19.6		)	(73.8		)	(23.9		)	(348.3		)
Other income (expense), net	(23.5		)	(1.7		)	29.8			(2.7		)
Earnings (loss) before income taxes	$	165.1		$	(279.9	)	$	(256.5	)	$	(879.5	)

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.



	Six months ended June 30,
	2016			2015
	in millions
Liberty Global Group:
European Operations Division:
U.K./Ireland	$	771.9		$	723.2
The Netherlands	283.0			251.9
Germany	284.1			268.1
Belgium (a)	225.4			139.9
Switzerland/Austria	144.2			139.3
Total Western Europe	1,708.6			1,522.4
Central and Eastern Europe	142.3			113.3
Central and other	166.8			162.2
Total European Operations Division	2,017.7			1,797.9
Corporate and other	6.3			41.7
Total Liberty Global Group	2,024.0			1,839.6
LiLAC Group:
CWC (b)	53.6			—
Chile	109.5			89.6
Puerto Rico (c)	41.8			36.3
Total LiLAC Group	204.9			125.9
Total property and equipment additions	2,228.9			1,965.5
Assets acquired under capital-related vendor financing arrangements	(946.4		)	(675.9		)
Assets acquired under capital leases	(41.8		)	(74.5		)
Changes in current liabilities related to capital expenditures	35.4			47.3
Total capital expenditures	$	1,276.1		$	1,262.4

_______________


(a)	The amount presented for the 2016 period includes the post-acquisition property and equipment additions of BASE, which was acquired on February 11, 2016.


(b)	The amount presented for the 2016 period reflects the post-acquisition property and equipment additions of CWC, which was acquired on May 16, 2016.


(c)	The amount presented for the 2015 period excludes the pre-acquisition 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 June 30,				Six months ended June 30,
	2016		2015		2016		2015
	in millions
Subscription revenue (a):
Video	$	1,614.0	$	1,605.0	$	3,181.7	$	3,210.8
Broadband internet	1,361.8		1,271.0		2,642.7		2,503.9
Fixed-line telephony	781.4		798.8		1,533.5		1,595.0
Cable subscription revenue	3,757.2		3,674.8		7,357.9		7,309.7
Mobile (b)	435.3		261.2		728.5		512.9
Total subscription revenue	4,192.5		3,936.0		8,086.4		7,822.6
B2B revenue (c)	502.7		385.0		890.5		762.9
Other revenue (b) (d)	378.9		245.5		685.2		497.9
Total	$	5,074.1	$	4,566.5	$	9,662.1	$	9,083.4

_______________

(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 $77.7 million and $53.1 million during the three months ended June 30, 2016 and 2015, respectively, and $142.7 million and $107.5 million during the six months ended June 30, 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 $93.8 million and $67.4 million during the three months ended June 30, 2016 and 2015, respectively, and $180.6 million and $130.0 million during the six months ended June 30, 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 June 30,					Six months ended June 30,
	2016			2015		2016			2015
	in millions
Liberty Global Group:
European Operations Division:
U.K.	$	1,605.6		$	1,662.4	$	3,184.1		$	3,274.4
The Netherlands	678.8			683.9		1,348.6			1,391.3
Belgium (a)	707.3			500.3		1,317.5			1,003.0
Germany	643.5			591.0		1,260.6			1,188.9
Switzerland	350.5			357.3		689.8			704.1
Ireland	112.1			97.2		220.1			196.6
Poland	99.4			101.2		196.0			202.2
Austria	96.5			91.5		190.6			184.0
Hungary	68.0			65.2		133.4			130.2
The Czech Republic	45.3			43.8		89.5			88.2
Romania	42.9			38.7		84.3			77.6
Slovakia	15.0			14.8		29.7			30.0
Other	2.5			2.5		3.9			3.4
Total European Operations Division	4,467.4			4,249.8		8,748.1			8,473.9
Other, including intersegment eliminations	3.8			5.3		7.2			10.3
Total Liberty Global Group	4,471.2			4,255.1		8,755.3			8,484.2
LiLAC Group:
LiLAC Division:
CWC (b):
Panama	83.2			—		83.2			—
Jamaica	40.4			—		40.4			—
Bahamas	37.2			—		37.2			—
Barbados	26.6			—		26.6			—
Trinidad & Tobago	20.1			—		20.1			—
Other (c)	78.1			—		78.1			—
Total CWC	285.6			—		285.6			—
Chile	210.6			220.8		410.6			429.6
Puerto Rico (d)	106.9			90.6		210.8			169.6
Total LiLAC Division	603.1			311.4		907.0			599.2
Intersegment eliminations	(0.2		)	—		(0.2		)	—
Total LiLAC Group	602.9			311.4		906.8			599.2
Total	$	5,074.1		$	4,566.5	$	9,662.1		$	9,083.4

_______________


(a)	The amounts presented for the 2016 periods include the post-acquisition revenue of BASE, which was acquired on February 11, 2016.


(b)	The amounts presented for the 2016 periods reflect the post-acquisition revenue of CWC, which was acquired on May 16, 2016.


(c)	Amounts for the 2016 periods include revenue from CWC’s other consumer and B2B operations, primarily in other countries in the Caribbean and Latin America, as well as intercompany eliminations.


(d)	The amounts presented for the 2015 periods exclude the pre-acquisition revenue of Choice, which was acquired on June 3, 2015.