Liberty Broadband identifies its reportable segments as (A) those consolidated companies that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings or losses represent 10% or more of Liberty Broadband’s annual pre-tax earnings (losses).

Liberty Broadband evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, Liberty Broadband reviews nonfinancial measures such as subscriber growth.

For segment reporting purposes, Liberty Broadband defines Adjusted OIBDA as revenue less operating expenses and selling, general and administrative expenses (excluding stock-based compensation). Liberty Broadband believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be

considered in addition to, but not as a substitute for, operating income, net earnings, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Liberty Broadband generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.

For the six months ended June 30, 2020, Liberty Broadband has identified the following consolidated company and equity method investment as its reportable segments:

Liberty Broadband’s operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated companies are the same as those described in the Company’s summary of significant accounting policies in the Company’s annual financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019. We have included amounts attributable to Charter in the tables below. Although Liberty Broadband owns less than 100% of the outstanding shares of Charter, 100% of the Charter amounts are included in the tables below and subsequently eliminated in order to reconcile the account totals to the Liberty Broadband condensed consolidated financial statements.

Performance Measures


	Three months ended June 30,
	2020			2019
			Adjusted		Adjusted
	Revenue		OIBDA	Revenue	OIBDA

		(amounts in thousands)
Skyhook	$	4,114	(1,045)	3,747	(876)
Charter		11,696,000	4,487,000	11,347,000	4,123,000
Corporate and other		—	(6,362)	—	(3,298)
		11,700,114	4,479,593	11,350,747	4,118,826
Eliminate equity method affiliate		(11,696,000)	(4,487,000)	(11,347,000)	(4,123,000)
Consolidated Liberty Broadband	$	4,114	(7,407)	3,747	(4,174)


	Six months ended June 30,
	2020			2019
			Adjusted		Adjusted
	Revenue		OIBDA	Revenue	OIBDA

	(amounts in thousands)
Skyhook	$	8,218	(1,767)	7,205	(2,069)
Charter		23,434,000	8,876,000	22,553,000	8,183,000
Corporate and other		—	(10,621)	—	(5,222)
		23,442,218	8,863,612	22,560,205	8,175,709
Eliminate equity method affiliate		(23,434,000)	(8,876,000)	(22,553,000)	(8,183,000)
Consolidated Liberty Broadband	$	8,218	(12,388)	7,205	(7,291)

Other Information


	June 30, 2020
	Total		Investments	Capital
	assets		in affiliates	expenditures

	(amounts in thousands)
Skyhook	$	18,912	—	35
Charter		145,136,000	—	3,338,000
Corporate and other		12,316,487	12,306,593	—
		157,471,399	12,306,593	3,338,035
Eliminate equity method affiliate		(145,136,000)	—	(3,338,000)
Consolidated Liberty Broadband	$	12,335,399	12,306,593	35

The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes:


	Three months ended			Six months
	June 30,			ended June 30,
	2020		2019	2020	2019

		(amounts in thousands)
Adjusted OIBDA	$	(7,407)	(4,174)	(12,388)	(7,291)
Stock-based compensation		(1,933)	(2,523)	(3,734)	(5,139)
Depreciation and amortization		(492)	(469)	(985)	(937)
Operating income (loss)		(9,832)	(7,166)	(17,107)	(13,367)
Interest expense		(5,131)	(6,342)	(10,992)	(12,885)
Share of earnings (loss) of affiliates, net		158,128	45,400	219,810	80,249
Gain (loss) on dilution of investment in affiliate		(46,001)	(16,322)	(105,326)	(57,725)
Other, net		28	406	191	829
Earnings (loss) before income taxes	$	97,192	15,976	86,576	(2,899)