Discontinued Operations

9 Months Ended

Sep. 30, 2025

Discontinued Operations

Discontinued Operations

(2) Discontinued Operations

GCI Divestiture

On June 19, 2025, Liberty Broadband entered into a Separation and Distribution Agreement (the “Separation and Distribution Agreement”), whereby, subject to the terms thereof, GCI Liberty, a Nevada corporation and a wholly owned subsidiary of Liberty Broadband, would spin-off from Liberty Broadband.

Pursuant to the Separation and Distribution Agreement, the GCI Divestiture was accomplished by means of a distribution by Liberty Broadband of 0.20 of a share of GCI Liberty’s Series A, B and C GCI Group common stock (collectively, the “GCI Group common stock”), for each whole share of the corresponding series of Liberty Broadband common stock held as of June 30, 2025 by the holder thereof. The distribution of the GCI Group common stock was completed on July 14, 2025. As a result of the GCI Divestiture, GCI Liberty is an independent, publicly traded company and its businesses, assets and liabilities initially consist of 100% of the outstanding equity interests in GCI, LLC and its subsidiaries.

In connection with the GCI Divestiture, Liberty Broadband entered into certain agreements with GCI Liberty, including the Separation and Distribution Agreement, a tax sharing agreement (the “GCI Tax Sharing Agreement”) and a tax receivables agreement (the “GCI Tax Receivables Agreement”), pursuant to which, among other things, Liberty Broadband and GCI Liberty will indemnify each other against certain losses that may arise. The GCI Tax Sharing Agreement governs the allocation of taxes, tax benefits, tax items and tax-related losses between Liberty Broadband and GCI Liberty, and the GCI Tax Receivables Agreement governs the respective rights and obligations of Liberty Broadband and GCI Liberty with respect to certain tax matters. As of September 30, 2025, Liberty Broadband has a liability of $98 million due to GCI Liberty related to taxes.

As disclosed in note 1, GCI Liberty is presented as a discontinued operation in Liberty Broadband’s condensed consolidated financial results as the GCI Divestiture represents a strategic shift that had a major effect on Liberty Broadband’s operations and financial results.

	December 31,
	2024
	amounts in millions
Assets
Total current assets	$	315
Property and equipment, net		1,150
Intangible assets not subject to amortization		1,346
Intangible assets subject to amortization, net		411
Other assets, net		165
Total assets	$	3,387
Liabilities and Equity
Total current liabilities	$	190
Long-term debt, net		1,066
Deferred income tax liabilities		360
Other liabilities		337
Total liabilities	$	1,953

In connection with the GCI Divestiture, the Company identified events that indicated that it was more likely than not that the carrying value of the GCI reporting unit and certain indefinite-lived intangible assets exceeded their fair value.

The Company estimated the fair value of the GCI reporting unit and indefinite-lived intangible assets using an income approach (Level 3). As a result, the Company recognized impairment charges of $534 million related to intangible assets not subject to amortization, which is included in Net earnings (loss) from discontinued operations for the three and nine months ended September 30, 2025.

The following table provides details about the major classes of line items constituting earnings (loss) from discontinued operations, net of tax as presented in the condensed consolidated statements of operations.

	Three months ended			Nine months ended
	September 30,			September 30,
	2025		2024	2025	2024
	amounts in millions
Revenue	$	39	262	566	753
Operating costs and expenses:
Operating expense (exclusive of depreciation and amortization shown separately below)		10	64	126	188
Selling, general and administrative, including stock-based compensation		13	102	212	300
Impairment of intangible assets		534	—	534	—
Depreciation and amortization		9	55	114	157
		566	221	986	645
Operating income (loss)		(527)	41	(420)	108
Other income (expense):
Interest expense (including amortization of deferred loan fees)		(2)	(13)	(24)	(36)
Other, net		2	1	5	4
Earnings (loss) from discontinued operations before income taxes		(527)	29	(439)	76
Income tax benefit (expense)		118	(7)	91	(21)
Net earnings (loss) from discontinued operations	$	(409)	22	(348)	55