Debt and Capital Lease Obligations (Tables)

3 Months Ended

Mar. 31, 2017

Debt and Capital Lease Obligations [Abstract]

Schedule of Debt

The U.S. dollar equivalents of the components of our debt are as follows:

	March 31, 2017										Principal amount
	Weighted average interest rate (a)		Unused borrowing capacity (b)				Estimated fair value (c)
			Borrowing currency		U.S. $ equivalent		March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
			in millions
Liberty Global Group:
VM Notes	5.54	%	—		$	—	$	9,552.5	$	9,311.0	$	9,160.0	$	9,041.0
VM Credit Facilities	3.72	%	(d)		846.6		4,535.7		4,531.5		4,516.4		4,505.5
Unitymedia Notes	5.00	%	—		—		7,844.9		7,679.7		7,489.9		7,419.3
Unitymedia Revolving Credit Facilities	—		€	500.0	534.9		—		—		—		—
UPC Broadband Holding Bank Facility	3.51	%	€	990.1	1,059.2		2,803.5		2,811.9		2,791.8		2,782.8
UPCB SPE Notes	4.88	%	—		—		1,807.7		1,783.7		1,781.8		1,772.8
UPC Holding Senior Notes	6.59	%	—		—		1,574.1		1,569.8		1,473.2		1,451.5
Telenet Credit Facility	3.56	%	€	545.0	583.0		3,215.7		3,210.0		3,211.5		3,187.5
Telenet SPE Notes	5.76	%	—		—		1,411.7		1,383.9		1,315.7		1,297.3
Vendor financing (e)	3.70	%	—		—		2,312.1		2,284.5		2,312.1		2,284.5
ITV Collar Loan	1.35	%	—		—		1,347.2		1,323.7		1,357.5		1,336.2
Derivative-related debt instruments (f)	3.61	%	—		—		797.6		450.7		741.7		426.3
Sumitomo Collar Loan	1.88	%	—		—		521.2		499.7		511.6		488.2
Other (g)	3.71	%	—		—		608.8		558.7		614.5		564.5
Total Liberty Global Group	4.52	%			3,023.7		38,332.7		37,398.8		37,277.7		36,557.4
LiLAC Group:
CWC Notes	7.31	%	—		—		2,346.6		2,319.6		2,184.0		2,181.1
CWC Credit Facilities	5.09	%	$	756.5	756.5		1,499.3		1,427.9		1,486.9		1,411.9
VTR Finance Senior Secured Notes	6.88	%	—		—		1,463.9		1,463.9		1,400.0		1,400.0
VTR Credit Facility	—		(h)		226.6		—		—		—		—
Liberty Puerto Rico Bank Facility	5.14	%	$	40.0	40.0		939.5		935.2		942.5		942.5
Vendor financing (e)	5.03	%	—		—		55.8		48.9		55.8		48.9
Total LiLAC Group	6.31	%			1,023.1		6,305.1		6,195.5		6,069.2		5,984.4
Total debt before unamortized premiums, discounts and deferred financing costs	4.77	%			$	4,046.8	$	44,637.8	$	43,594.3	$	43,346.9	$	42,541.8

The following table provides a reconciliation of total debt before unamortized premiums, discounts and deferred financing costs to total debt and capital lease obligations:

	March 31, 2017			December 31, 2016
	in millions
Total debt before unamortized premiums, discounts and deferred financing costs	$	43,346.9		$	42,541.8
Unamortized premiums, net of discounts	37.5			44.5
Unamortized deferred financing costs	(278.2		)	(270.4		)
Total carrying amount of debt	43,106.2			42,315.9
Capital lease obligations (i)	1,261.3			1,242.8
Total debt and capital lease obligations	44,367.5			43,558.7
Current maturities of debt and capital lease obligations	(2,967.5		)	(2,775.1		)
Long-term debt and capital lease obligations	$	41,400.0		$	40,783.6

_______________

(a) Represents the weighted average interest rate in effect at March 31, 2017 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. Including the effects of derivative instruments, original issue premiums or discounts and commitment fees, but excluding the impact of financing costs, our weighted average interest rate on our aggregate variable- and fixed-rate indebtedness was 4.91% (including 4.62% for the Liberty Global Group and 6.63% for the LiLAC Group) at March 31, 2017. For information regarding our derivative instruments, see note 5.

(b) Unused borrowing capacity represents the maximum availability under the applicable facility at March 31, 2017 without regard to covenant compliance calculations or other conditions precedent to borrowing. At March 31, 2017, based on the applicable leverage covenants, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, and there were no restrictions on the respective subsidiary's ability to make loans or distributions from this availability to Liberty Global or its subsidiaries or other equity holders, except as shown in the table below. In the following table, for each facility that is subject to limitations on borrowing availability, we present (i) the actual borrowing availability under the respective facility and (ii) for each subsidiary where the ability to make loans or distributions from this availability is limited, the amount that can be loaned or distributed to Liberty Global or its subsidiaries or other equity holders. The amounts presented below assume no changes from March 31, 2017 borrowing levels and are based on the applicable covenant and other limitations in effect within each borrowing group at March 31, 2017, both before and after considering the impact of the completion of the March 31, 2017 compliance requirements. For information regarding certain refinancing transactions completed subsequent to March 31, 2017 that could have an impact on unused borrowing capacity and/or the availability to be borrowed, loaned or distributed, see note 16.

	Limitation on availability
	March 31, 2017				Upon completion of relevant March 31, 2017 compliance reporting requirements
	Borrowing currency		U.S. $ equivalent		Borrowing currency		U.S. $ equivalent
	in millions
Limitation on availability to be borrowed under:
CWC Credit Facilities (1)	$	612.5	$	612.5	$	612.5	$	612.5
Limitation on availability to be loaned or distributed by:
Virgin Media	£	675.0	$	846.6	£	618.8	$	776.1
Unitymedia	€	218.2	$	233.4	€	225.4	$	241.1

_______________

(1) The limitation on availability under the CWC Credit Facilities reflects letters of credit issued in connection with certain pension obligations.

(c) The estimated fair values of our debt instruments are determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy). The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors. For additional information regarding fair value hierarchies, see note 6.

(d) Unused borrowing capacity under the VM Credit Facilities relates to a multi-currency revolving facility with maximum borrowing capacity equivalent to £675.0 million ($846.6 million).

(e) Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our property and equipment additions and, to a lesser extent, certain of our operating expenses. These obligations are generally due within one year and include VAT that was paid on our behalf by the vendor. Repayments of vendor financing obligations are included in repayments and repurchases of debt and capital lease obligations in our condensed consolidated statements of cash flows.

(f) Represents amounts associated with certain derivative-related borrowing instruments, including $393.9 million carried at fair value. For information regarding fair value hierarchies, see note 6.

(g) The March 31, 2017 balance includes (i) $245.9 million associated with the Sumitomo Share Loan, which is carried at fair value, and (ii) $131.7 million of debt collateralized by certain trade receivables of Virgin Media. For information regarding fair value hierarchies, see note 6.

(h) The VTR Credit Facility is the senior secured credit facility of VTR and certain of its subsidiaries and comprises a $160.0 million facility and a CLP 44.0 billion ($66.6 million) facility, each of which were undrawn at March 31, 2017.

(i) The U.S. dollar equivalents of our consolidated capital lease obligations are as follows:

	March 31, 2017		December 31, 2016
	in millions
Liberty Global Group:
Unitymedia	$	661.6	$	657.0
Telenet	387.1		374.0
Virgin Media	84.1		91.2
Other subsidiaries	107.8		98.9
Total Liberty Global Group	1,240.6		1,221.1
LiLAC Group:
CWC	20.0		20.8
VTR	0.6		0.7
Liberty Puerto Rico	0.1		0.2
Total LiLAC Group	20.7		21.7
Total capital lease obligations	$	1,261.3	$	1,242.8

Schedule of Senior Notes

The U.S. dollar equivalents of the components of our debt are as follows:

	March 31, 2017										Principal amount
	Weighted average interest rate (a)		Unused borrowing capacity (b)				Estimated fair value (c)
			Borrowing currency		U.S. $ equivalent		March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
			in millions
Liberty Global Group:
VM Notes	5.54	%	—		$	—	$	9,552.5	$	9,311.0	$	9,160.0	$	9,041.0
VM Credit Facilities	3.72	%	(d)		846.6		4,535.7		4,531.5		4,516.4		4,505.5
Unitymedia Notes	5.00	%	—		—		7,844.9		7,679.7		7,489.9		7,419.3
Unitymedia Revolving Credit Facilities	—		€	500.0	534.9		—		—		—		—
UPC Broadband Holding Bank Facility	3.51	%	€	990.1	1,059.2		2,803.5		2,811.9		2,791.8		2,782.8
UPCB SPE Notes	4.88	%	—		—		1,807.7		1,783.7		1,781.8		1,772.8
UPC Holding Senior Notes	6.59	%	—		—		1,574.1		1,569.8		1,473.2		1,451.5
Telenet Credit Facility	3.56	%	€	545.0	583.0		3,215.7		3,210.0		3,211.5		3,187.5
Telenet SPE Notes	5.76	%	—		—		1,411.7		1,383.9		1,315.7		1,297.3
Vendor financing (e)	3.70	%	—		—		2,312.1		2,284.5		2,312.1		2,284.5
ITV Collar Loan	1.35	%	—		—		1,347.2		1,323.7		1,357.5		1,336.2
Derivative-related debt instruments (f)	3.61	%	—		—		797.6		450.7		741.7		426.3
Sumitomo Collar Loan	1.88	%	—		—		521.2		499.7		511.6		488.2
Other (g)	3.71	%	—		—		608.8		558.7		614.5		564.5
Total Liberty Global Group	4.52	%			3,023.7		38,332.7		37,398.8		37,277.7		36,557.4
LiLAC Group:
CWC Notes	7.31	%	—		—		2,346.6		2,319.6		2,184.0		2,181.1
CWC Credit Facilities	5.09	%	$	756.5	756.5		1,499.3		1,427.9		1,486.9		1,411.9
VTR Finance Senior Secured Notes	6.88	%	—		—		1,463.9		1,463.9		1,400.0		1,400.0
VTR Credit Facility	—		(h)		226.6		—		—		—		—
Liberty Puerto Rico Bank Facility	5.14	%	$	40.0	40.0		939.5		935.2		942.5		942.5
Vendor financing (e)	5.03	%	—		—		55.8		48.9		55.8		48.9
Total LiLAC Group	6.31	%			1,023.1		6,305.1		6,195.5		6,069.2		5,984.4
Total debt before unamortized premiums, discounts and deferred financing costs	4.77	%			$	4,046.8	$	44,637.8	$	43,594.3	$	43,346.9	$	42,541.8

The following table provides a reconciliation of total debt before unamortized premiums, discounts and deferred financing costs to total debt and capital lease obligations:

	March 31, 2017			December 31, 2016
	in millions
Total debt before unamortized premiums, discounts and deferred financing costs	$	43,346.9		$	42,541.8
Unamortized premiums, net of discounts	37.5			44.5
Unamortized deferred financing costs	(278.2		)	(270.4		)
Total carrying amount of debt	43,106.2			42,315.9
Capital lease obligations (i)	1,261.3			1,242.8
Total debt and capital lease obligations	44,367.5			43,558.7
Current maturities of debt and capital lease obligations	(2,967.5		)	(2,775.1		)
Long-term debt and capital lease obligations	$	41,400.0		$	40,783.6

Schedule of Borrowings Levels

The amounts presented below assume no changes from March 31, 2017 borrowing levels and are based on the applicable covenant and other limitations in effect within each borrowing group at March 31, 2017, both before and after considering the impact of the completion of the March 31, 2017 compliance requirements. For information regarding certain refinancing transactions completed subsequent to March 31, 2017 that could have an impact on unused borrowing capacity and/or the availability to be borrowed, loaned or distributed, see note 16.

	Limitation on availability
	March 31, 2017				Upon completion of relevant March 31, 2017 compliance reporting requirements
	Borrowing currency		U.S. $ equivalent		Borrowing currency		U.S. $ equivalent
	in millions
Limitation on availability to be borrowed under:
CWC Credit Facilities (1)	$	612.5	$	612.5	$	612.5	$	612.5
Limitation on availability to be loaned or distributed by:
Virgin Media	£	675.0	$	846.6	£	618.8	$	776.1
Unitymedia	€	218.2	$	233.4	€	225.4	$	241.1

Schedule of Capital Lease Obligations

The U.S. dollar equivalents of our consolidated capital lease obligations are as follows:

	March 31, 2017		December 31, 2016
	in millions
Liberty Global Group:
Unitymedia	$	661.6	$	657.0
Telenet	387.1		374.0
Virgin Media	84.1		91.2
Other subsidiaries	107.8		98.9
Total Liberty Global Group	1,240.6		1,221.1
LiLAC Group:
CWC	20.0		20.8
VTR	0.6		0.7
Liberty Puerto Rico	0.1		0.2
Total LiLAC Group	20.7		21.7
Total capital lease obligations	$	1,261.3	$	1,242.8

Debt Instrument Redemption

Virgin Media Secured Finance may redeem some or all of the 2025 VM Sterling Senior Secured Notes at the following redemption prices (expressed as a percentage of the principal amount) plus accrued and unpaid interest and additional amounts (as specified in the indenture), if any, to the applicable redemption date, as set forth below:

	Redemption price
12-month period commencing January 15:
2021	105.000%
2022	102.500%
2023 and thereafter	100.000%

Virgin Media Secured Finance may redeem some or all of the April 2027 VM Senior Secured Notes at the following redemption prices (expressed as a percentage of the principal amount) plus accrued and unpaid interest and additional amounts (as specified in the indenture), if any, to the applicable redemption date, as set forth below:

	Redemption price
12-month period commencing April 15:
2022	102.500%
2023	101.250%
2024	100.625%
2025 and thereafter	100.000%

Schedule of Maturities of Long-Term Debt

Maturities of Debt and Capital Lease Obligations

Maturities of our debt and capital lease obligations as of March 31, 2017 are presented below (U.S. dollar equivalents based on March 31, 2017 exchange rates) for the named entity and its subsidiaries, unless otherwise noted:

Debt:

	Liberty Global Group
	Virgin Media			Unitymedia			UPC Holding (a)			Telenet (b)			Other			Total Liberty Global Group
	in millions
Year ending December 31:
2017 (remainder of year)	$	908.4		$	228.0		$	690.8		$	73.2		$	540.0		$	2,440.4
2018	156.0			34.8			161.7			20.7			1,120.8			1,494.0
2019	108.8			7.7			1.2			18.1			307.9			443.7
2020	78.0			7.3			2.7			12.0			27.6			127.6
2021	626.2			6.9			4.2			10.6			245.9			893.8
2022	395.3			569.8			642.9			492.2			27.6			2,127.8
Thereafter	12,909.0			7,271.1			5,405.0			4,119.7			—			29,704.8
Total debt maturities	15,181.7			8,125.6			6,908.5			4,746.5			2,269.8			37,232.1
Unamortized premiums (discounts), net	8.7			—			(11.8		)	—			(34.0		)	(37.1		)
Unamortized deferred financing costs	(115.1		)	(49.5		)	(32.9		)	(38.6		)	(1.0		)	(237.1		)
Total debt	$	15,075.3		$	8,076.1		$	6,863.8		$	4,707.9		$	2,234.8		$	36,957.9
Current portion	$	1,068.6		$	261.9		$	851.6		$	86.0		$	430.9		$	2,699.0
Noncurrent portion	$	14,006.7		$	7,814.2		$	6,012.2		$	4,621.9		$	1,803.9		$	34,258.9

				LiLAC Group
	Total Liberty Global Group			CWC			VTR			Liberty Puerto Rico			Total LiLAC Group			Total Liberty Global
				in millions
Year ending December 31:
2017 (remainder of year)	$	2,440.4		$	51.3		$	55.8		$	—		$	107.1		$	2,547.5
2018	1,494.0			55.1			—			—			55.1			1,549.1
2019	443.7			247.6			—			—			247.6			691.3
2020	127.6			38.7			—			—			38.7			166.3
2021	893.8			1,384.3			—			—			1,384.3			2,278.1
2022	2,127.8			1,874.3			—			765.0			2,639.3			4,767.1
Thereafter	29,704.8			19.6			1,400.0			177.5			1,597.1			31,301.9
Total debt maturities	37,232.1			3,670.9			1,455.8			942.5			6,069.2			43,301.3
Unamortized premiums (discounts), net	(37.1		)	81.7			—			(7.1		)	74.6			37.5
Unamortized deferred financing costs	(237.1		)	(9.5		)	(24.1		)	(7.5		)	(41.1		)	(278.2		)
Total debt	$	36,957.9		$	3,743.1		$	1,431.7		$	927.9		$	6,102.7		$	43,060.6
Current portion	$	2,699.0		$	82.5		$	55.8		$	—		$	138.3		$	2,837.3
Noncurrent portion	$	34,258.9		$	3,660.6		$	1,375.9		$	927.9		$	5,964.4		$	40,223.3

_______________

(a) Amounts include certain senior and senior secured notes issued by special purpose financing entities that are consolidated by UPC Holding and Liberty Global.

(b) Amounts include certain senior and senior secured notes issued by special purpose financing entities that are consolidated by Telenet and Liberty Global.

Schedule of Capital Lease Obligations Maturities

Capital lease obligations:

	Liberty Global Group
	Unitymedia			Telenet			Virgin Media			Other			Total Liberty Global Group			Total LiLAC Group			Total
	in millions
Year ending December 31:
2017 (remainder of year)	$	59.7		$	54.5		$	26.9		$	23.7		$	164.8		$	5.4		$	170.2
2018	79.3			65.2			15.5			24.6			184.6			12.7			197.3
2019	78.8			56.1			7.5			18.3			160.7			2.2			162.9
2020	78.5			53.1			4.7			12.9			149.2			1.3			150.5
2021	78.4			51.1			4.4			10.1			144.0			0.1			144.1
2022	78.4			52.7			3.8			6.3			141.2			—			141.2
Thereafter	618.6			182.0			168.1			33.6			1,002.3			—			1,002.3
Total principal and interest payments	1,071.7			514.7			230.9			129.5			1,946.8			21.7			1,968.5
Amounts representing interest	(410.1		)	(127.6		)	(146.8		)	(21.7		)	(706.2		)	(1.0		)	(707.2		)
Present value of net minimum lease payments	$	661.6		$	387.1		$	84.1		$	107.8		$	1,240.6		$	20.7		$	1,261.3
Current portion	$	29.6		$	44.8		$	27.1		$	21.9		$	123.4		$	6.8		$	130.2
Noncurrent portion	$	632.0		$	342.3		$	57.0		$	85.9		$	1,117.2		$	13.9		$	1,131.1