UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	March 31, 2021

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Commission file number: 001-38335

Liberty Latin America Ltd.

(Exact name of Registrant as specified in its charter)

Bermuda	98-1386359
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
2 Church Street,
Hamilton	HM 11
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (441) 295-5950 or (303) 925-6000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbols	Name of Each Exchange on Which Registered
Class A Common Shares, par value $0.01 per share	LILA	The NASDAQ Stock Market LLC
Class C Common Shares, par value $0.01 per share	LILAK	The NASDAQ Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ        No  ¨

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).    Yes  þ        No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☑	Accelerated Filer	☐	Non-Accelerated Filer	☐
Smaller Reporting Company	☐	Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

The number of outstanding common shares of Liberty Latin America Ltd. as of April 30, 2021 was: 49,685,138 Class A; 1,932,381 Class B; and 182,470,099 Class C.

LIBERTY LATIN AMERICA LTD.

TABLE OF CONTENTS

		Page Number
	PART I - FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS
	Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 (unaudited)	1
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2021 and 2020 (unaudited)	3
	Condensed Consolidated Statements of Comprehensive Earnings (Loss) for the Three Months Ended March 31, 2021 and 2020 (unaudited)	4
	Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2021 and 2020 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	7
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	32
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	59
Item 4.	CONTROLS AND PROCEDURES	61
	PART II - OTHER INFORMATION
Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	62
Item 6.	EXHIBITS	62

GLOSSARY OF DEFINED TERMS

Unless the context requires otherwise, references to Liberty Latin America, “we,” “our,” “our company” and “us” in this Quarterly Report on Form 10-Q (as defined below) may refer to Liberty Latin America Ltd. or collectively to Liberty Latin America Ltd. and its subsidiaries. We have used several other terms in this Quarterly Report on Form 10-Q, most of which are defined or explained below.

2020 Form 10-K	Annual Report on Form 10-K for the year ended December 31, 2020
2026 SPV Credit Facility	$1.0 billion principal amount of LIBOR + 5.0% term loan facility due October 15, 2026 issued by LCPR Loan Financing (repaid during 2021)
2028 LPR Term Loan	$500 million principal amount of LIBOR + 3.75% term loan facility due October 15, 2028 issued by LCPR Loan Financing
2028 VTR Senior Secured Notes	$540 million principal amount of 5.125% senior secured notes due January 15, 2028 issued by VTR Comunicaciones SpA
2029 VTR Senior Secured Notes	$410 million principal amount of 4.375% senior secured notes due April 15, 2029 issued by VTR Comunicaciones SpA
2029 LPR Senior Secured Notes	$820 million principal amount of 5.125% senior secured notes due July 15, 2029 issued by LCPR Senior Secured Financing
Acquisition Agreement	Stock purchase agreement entered into between Liberty Communications PR and Liberty Latin America and AT&T to acquire the AT&T Acquired Entities
Adjusted OIBDA	Operating income or loss before share-based compensation, depreciation and amortization, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Other operating items include (i) gains and losses on the disposition of long-lived assets, (ii) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (iii) other acquisition-related items, such as gains and losses on the settlement of contingent consideration.
Annual Report on Form 10-K	Annual Report on Form 10-K as filed with the SEC under the Exchange Act
ARPU	Average monthly subscription revenue per average fixed RGU or mobile subscriber, as applicable
ASU	Accounting Standards Update
AT&T	AT&T Inc.
AT&T Acquisition	October 31, 2020 acquisition of all of the outstanding shares of the AT&T Acquired Entities
AT&T Acquired Entities	Collectively, AT&T Mobility Puerto Rico Inc., AT&T Mobility Virgin Islands Inc. and Beach Holding Corporation
B2B	Business-to-business
C&W	Cable & Wireless Communications Limited and its subsidiaries
C&W Bahamas	The Bahamas Telecommunications Company Limited, a 49%-owned subsidiary of C&W that owns all of our operations in the Bahamas
C&W Caribbean and Networks	Reportable segment that includes all subsidiaries of C&W, excluding CWP that is a separate reportable segment
C&W Credit Facilities	Senior secured credit facilities of certain subsidiaries of C&W comprised of: (i) C&W Term Loan B-5 Facility; (ii) C&W Revolving Credit Facility; and (iii) C&W Regional Facilities
C&W Jamaica	Cable & Wireless Jamaica Limited, a 92%-owned subsidiary of C&W
C&W Panama	Reportable segment for our operations in Panama
C&W Regional Facilities	Primarily comprised of credit facilities at CWP, C&W Jamaica and Columbus Communications Trinidad Limited
C&W Revolving Credit Facility	$630 million LIBOR + 3.25% revolving credit facility, $50 million of which is due June 30, 2023 and $580 million due January 30, 2026, of C&W
C&W Term Loan B-4 Facility	$1,640 million principal amount term loan B-4 facility of C&W (repaid during 2020)
C&W Term Loan B-5 Facility	$1,510 million principal amount of LIBOR + 2.25% term loan B-5 facility due January 31, 2028 of C&W
Cabletica	Cabletica S.A., an 80%-owned subsidiary; a reportable segment that owns most of our operations in Costa Rica

GLOSSARY OF DEFINED TERM – (Continued)

Cabletica Credit Facilities	Senior secured credit facilities of Cabletica comprised of: (i) Cabletica Term Loan B-1 Facility; (ii) Cabletica Term Loan B-2 Facility; and (iii) Cabletica Revolving Credit Facility
Cabletica Revolving Credit Facility	$15 million LIBOR + 4.25% revolving credit facility due August 1, 2024 of Cabletica
Cabletica Term Loan B-1 Facility	$49 million principal amount of LIBOR + 5.50% term loan facility, 50% of which is due February 1, 2024 and 50% due August 1, 2024, of Cabletica
Cabletica Term Loan B-2 Facility	CRC 43 billion principal amount of TBP + 6.75% term loan facility, 50% of which is due February 1, 2024 and 50% due August 1, 2024, of Cabletica
CLP	Chilean peso
Convertible Notes	$403 million principal amount of 2% convertible senior notes due July 15, 2024 issued by Liberty Latin America
COP	Colombian peso
CPE	Customer premises equipment
CRC	Costa Rica colón
CWP	Cable & Wireless Panama, S.A., a 49%-owned subsidiary of C&W that owns most of our operations in Panama
Directors	Members of Liberty Latin America’s board of directors
EPS	Earnings or loss per share
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
FCC	United States Federal Communications Commission
FX	Foreign currency translation effects
JMD	Jamaican dollar
LCPR	Liberty Cablevision of Puerto Rico LLC
LCPR Loan Financing	LCPR Loan Financing LLC, a consolidated special purpose financing entity
LCPR Senior Secured Financing	LCPR Senior Secured Financing Designated Activity Company, a consolidated special purpose financing entity
Liberty Communications PR	Liberty Communications PR Holding LP and its subsidiaries, which include LCPR and, as of October 31, 2020, Liberty Mobile and its subsidiaries
Liberty Latin America Shares	Collectively, Class A, Class B and Class C common shares of Liberty Latin America
Liberty Mobile	Liberty Mobile Inc. and it subsidiaries
Liberty Puerto Rico	Reportable segment with operations in Puerto Rico and the U.S. Virgin Islands
LIBOR	London Inter-Bank Offered Rate
LPR Credit Facilities	Senior secured credit facilities of Liberty Puerto Rico comprised of: (i) LPR Revolving Credit Facility; (ii) 2028 LPR Term Loan; and (iii) at December 31, 2020, 2026 SPV Credit Facility
LPR Revolving Credit Facility	$168 million LIBOR + 3.5% revolving credit facility due March 15, 2027 of LCPR
MVNO	Mobile virtual network operator
Networks & LatAm	Business operations within our C&W Caribbean and Network segment
PSUs	Performance-based restricted stock units
Quarterly Report on Form 10-Q	Quarterly Report on Form 10-Q as filed with the SEC under the Exchange Act
RGU	Revenue generating unit
RSUs	Restricted stock units
Sable	Sable International Finance Limited, a wholly-owned subsidiary of C&W
Sable Currency Swaps	U.S. dollar to the Jamaican dollar cross-currency swaps held by Sable
SARs	Stock appreciation rights
SEC	U.S. Securities and Exchange Commission
SERNAC	Servicio Nacional del Consumidor (the Chilean National Consumer Authority)

GLOSSARY OF DEFINED TERM – (Continued)

Share Repurchase Program	The share repurchase program for up to $100 million of our Class A and/or Class C common shares over two years that was authorized by our Directors on March 16, 2020
TAB	Tasa Activa Bancaria interest rate
TBP	Tasa Básica Pasiva interest rate
Telefónica-Costa Rica Acquisition	Pending acquisition of Telefónica S.A.’s wireless operations in Costa Rica
TSA	Transition services agreement dated October 31, 2020 by and between AT&T and Leo Cable LP, a wholly-owned subsidiary of Liberty Latin America, for a period up to 36 months following the closing of the AT&T Acquisition
U.K.	United Kingdom
U.S.	United States
U.S. GAAP	Generally accepted accounting principles in the United States
VAT	Value-added taxes
VTR	VTR Finance N.V. and its subsidiaries, a reportable segment
VTR Credit Facilities	Senior secured credit facilities of VTR comprised of: (i) VTR RCF – A; (ii) VTR RCF – B; and (iii) at December 31, 2020, the VTR TLB-1 and VTR TLB-2 facilities
VTR RCF – A	CLP 45 billion TAB + 3.35% revolving credit facility due June 15, 2026 of VTR
VTR RCF – B	$200 million LIBOR + 2.75% revolving credit facility due June 15, 2026 of VTR
VTR TLB-1 Facility	CLP 141 billion principal amount of ICP +3.8% term loan facility of VTR (repaid during 2021)
VTR TLB-2 Facility	CLP 33 billion principal amount of 7% term loan facility of VTR (repaid during 2021)
Weather Derivatives	Weather derivative contracts that provide insurance coverage for certain weather-related events

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

	March 31, 2021		December 31, 2020
	in millions
ASSETS
Current assets:
Cash and cash equivalents	$	1,305.6	$	894.2
Trade receivables, net of allowances of $94.9 million and $100.0 million, respectively	563.4		560.7
Prepaid expenses	68.4		62.6
Other current assets, net	471.2		434.4
Total current assets	2,408.6		1,951.9
Goodwill	4,814.1		4,885.5
Property and equipment, net	4,891.3		4,911.4
Intangible assets subject to amortization, net	805.0		858.9
Intangible assets not subject to amortization	1,465.4		1,465.6
Other assets, net	1,164.7		1,156.7
Total assets	$	15,549.1	$	15,230.0

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS – (Continued)

(unaudited)

	March 31, 2021		December 31, 2020
	in millions
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	364.9	$	351.7
Current portion of deferred revenue	168.7		184.9
Current portion of debt and finance lease obligations	162.8		161.9
Accrued capital expenditures	65.5		73.6
Accrued interest	109.6		132.3
Accrued payroll and employee benefits	68.6		97.8
Derivative instruments	77.7		90.2
Other accrued and current liabilities	648.5		612.6
Total current liabilities	1,666.3		1,705.0
Long-term debt and finance lease obligations	8,620.1		8,195.3
Deferred tax liabilities	627.8		619.9
Deferred revenue	172.6		185.3
Other long-term liabilities	926.0		1,080.8
Total liabilities	12,012.8		11,786.3
Commitments and contingencies
Equity:
Liberty Latin America shareholders:
Class A, $0.01 par value; 500,000,000 shares authorized; 49,868,589 and 49,574,773 shares issued and outstanding, respectively, at March 31, 2021; 49,303,401 and 49,009,585 shares issued and outstanding, respectively, at December, 31, 2020	0.5		0.5
Class B, $0.01 par value; 50,000,000 shares authorized; 1,932,385 shares issued and outstanding at March 31, 2021; 1,932,386 shares issued and outstanding at December 31, 2020	—		—
Class C, $0.01 par value; 500,000,000 shares authorized; 182,913,402 and 182,240,244 shares issued and outstanding, respectively, at March 31, 2021; 181,786,924 and 181,113,766 shares issued and outstanding, respectively, at December 31, 2020	1.8		1.8
Undesignated preference shares, $0.01 par value; 50,000,000 shares authorized; nil shares issued and outstanding at each period	—		—
Treasury shares, at cost; 966,974 shares at each period	(9.5)		(9.5)
Additional paid-in capital	5,009.8		4,982.0
Accumulated deficit	(2,046.7)		(2,134.5)
Accumulated other comprehensive loss, net of taxes	(150.0)		(125.6)
Total Liberty Latin America shareholders	2,805.9		2,714.7
Noncontrolling interests	730.4		729.0
Total equity	3,536.3		3,443.7
Total liabilities and equity	$	15,549.1	$	15,230.0

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	Three months ended March 31,
	2021		2020
	in millions, except per share amounts
Revenue	$	1,159.9	$	931.0
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below):
Programming and other direct costs of services	280.2		210.8
Other operating costs and expenses	453.4		380.1
Depreciation and amortization	245.9		213.5
Impairment, restructuring and other operating items, net	2.2		18.8
	981.7		823.2
Operating income	178.2		107.8
Non-operating income (expense):
Interest expense	(126.4)		(143.3)
Realized and unrealized gains on derivative instruments, net	114.9		17.4
Foreign currency transaction losses, net	(25.4)		(164.3)
Losses on debt extinguishment	(23.3)		(3.4)
Other income (expense), net	(0.6)		6.8
	(60.8)		(286.8)
Earnings (loss) before income taxes	117.4		(179.0)
Income tax expense	(28.0)		(5.6)
Net earnings (loss)	89.4		(184.6)
Net loss (earnings) attributable to noncontrolling interests	(1.6)		3.9
Net earnings (loss) attributable to Liberty Latin America shareholders	$	87.8	$	(180.7)
Basic net earnings (loss) per share attributable to Liberty Latin America shareholders	$	0.38	$	(0.98)
Dilutive net earnings (loss) per share attributable to Liberty Latin America shareholders	$	0.37	$	(0.98)

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)

(unaudited)

	Three months ended March 31,
	2021		2020
	in millions
Net earnings (loss)	$	89.4	$	(184.6)
Other comprehensive earnings (loss), net of taxes:
Foreign currency translation adjustments	(26.0)		(4.7)
Reclassification adjustments included in net earnings (loss)	1.2		(2.8)
Pension-related adjustments and other, net	0.2		1.1
Other comprehensive loss	(24.6)		(6.4)
Comprehensive earnings (loss)	64.8		(191.0)
Comprehensive loss (earnings) attributable to noncontrolling interests	(1.4)		4.1
Comprehensive earnings (loss) attributable to Liberty Latin America shareholders	$	63.4	$	(186.9)

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(unaudited)

	Liberty Latin America shareholders																Non-controlling interests		Total equity
	Common shares						Treasury Stock		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive loss, net of taxes		Total Liberty Latin America shareholders
	Class A		Class B		Class C
	in millions
Balance at January 1, 2020	$	0.5	$	—	$	1.3	$	—	$	4,569.9	$	(1,447.1)	$	(14.8)	$	3,109.8	$	870.1	$	3,979.9
Accounting change	—		—		—		—		—		(0.2)		—		(0.2)		0.2		—
Balance at January 1, 2020, as adjusted for accounting change	0.5		—		1.3		—		4,569.9		(1,447.3)		(14.8)		3,109.6		870.3		3,979.9
Net loss	—		—		—		—		—		(180.7)		—		(180.7)		(3.9)		(184.6)
Other comprehensive loss	—		—		—		—		—		—		(6.2)		(6.2)		(0.2)		(6.4)
Repurchase of Liberty Latin America common shares	—		—		—		(1.7)		—		—		—		(1.7)		—		(1.7)
Shared-based compensation	—		—		—		—		21.4		—		—		21.4		—		21.4
Other	—		—		—		—		0.9		—		—		0.9		(0.1)		0.8
Balance at March 31, 2020	$	0.5	$	—	$	1.3	$	(1.7)	$	4,592.2	$	(1,628.0)	$	(21.0)	$	2,943.3	$	866.1	$	3,809.4
Balance at January 1, 2021	$	0.5	$	—	$	1.8	$	(9.5)	$	4,982.0	$	(2,134.5)	$	(125.6)	$	2,714.7	$	729.0	$	3,443.7
Net earnings	—		—		—		—		—		87.8		—		87.8		1.6		89.4
Other comprehensive loss	—		—		—		—		—		—		(24.4)		(24.4)		(0.2)		(24.6)
Shared-based compensation	—		—		—		—		27.9		—		—		27.9		—		27.9
Other	—		—		—		—		(0.1)		—		—		(0.1)		—		(0.1)
Balance at March 31, 2021	$	0.5	$	—	$	1.8	$	(9.5)	$	5,009.8	$	(2,046.7)	$	(150.0)	$	2,805.9	$	730.4	$	3,536.3

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

LIBERTY LATIN AMERICA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited) 

	Three months ended March 31,
	2021		2020
	in millions
Cash flows from operating activities:
Net earnings (loss)	$	89.4	$	(184.6)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Share-based compensation expense	23.0		23.8
Depreciation and amortization	245.9		213.5
Impairment	2.3		1.7
Loss (gain) on dispositions	(8.6)		0.2
Amortization of debt financing costs, premiums and discounts, net	6.8		7.9
Realized and unrealized gains on derivative instruments, net	(114.9)		(17.4)
Foreign currency transaction losses, net	25.4		164.3
Loss on debt extinguishment	23.3		3.4
Deferred income tax expense (benefit)	7.2		(20.3)
Changes in operating assets and liabilities, net of the effect of acquisitions	(96.3)		(77.6)
Net cash provided by operating activities	203.5		114.9
Cash flows from investing activities:
Capital expenditures	(135.6)		(149.2)
Cash received upon dispositions	20.4		0.3
Other investing activities, net	(11.2)		1.8
Net cash used by investing activities	(126.4)		(147.1)
Cash flows from financing activities:
Borrowings of debt	696.0		539.6
Payments of principal amounts of debt and finance lease obligations	(288.3)		(48.8)
Net cash paid related to derivative instruments	(43.0)		(4.3)
Payment of financing costs and debt redemption premiums	(26.8)		(25.9)
Repurchase of Liberty Latin America common shares	—		(1.4)
Distributions to noncontrolling interest owners	—		(0.7)
Other financing activities, net	(4.9)		(3.1)
Net cash provided by financing activities	333.0		455.4
Effect of exchange rate changes on cash, cash equivalents and restricted cash	2.8		(8.5)
Net increase in cash, cash equivalents and restricted cash	412.9		414.7
Cash, cash equivalents and restricted cash:
Beginning of period	912.5		2,457.0
End of period	$	1,325.4	$	2,871.7
Cash paid for interest	$	138.1	$	145.3
Net cash paid for taxes	$	14.7	$	12.5

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements

March 31, 2021

(unaudited)

(1)    Basis of Presentation

See the Glossary of defined terms at the beginning of this Quarterly Report on Form 10-Q for terms used throughout the condensed consolidated financial statements and related notes.

General

Liberty Latin America is a registered company in Bermuda that primarily includes: (i) C&W; (ii) Liberty Communications PR; (iii) VTR; and (iv) LBT CT Communications, S.A. (a less than wholly-owned entity) and its subsidiary, Cabletica. C&W owns less than 100% of certain of its consolidated subsidiaries, including C&W Bahamas, C&W Jamaica and CWP.

We are an international provider of fixed, mobile and subsea telecommunications services. We provide residential and B2B services in (i) over 20 countries across Latin America and the Caribbean through two of our reportable segments, C&W Caribbean and Networks and C&W Panama, (ii) Chile, through our reportable segment VTR, (iii) Costa Rica, through our reportable segment Cabletica, and (iv) Puerto Rico, through our reportable segment Liberty Puerto Rico. As a result of organizational changes during the first quarter of 2021, VTR and Cabletica are now each a separate operating and reportable segment rather than one segment. For additional information regarding our segment change, see note 18. Through our Networks & LatAm business, C&W Caribbean and Networks also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region.

Unless otherwise indicated, ownership percentages and convenience translations into U.S. dollars are calculated as of March 31, 2021.

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by U.S. GAAP or Securities and Exchange Commission rules and regulations for complete financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our 2020 Form 10-K.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and assumptions are used in accounting for, among other things, the valuation of acquisition-related assets and liabilities, expected credit losses, programming and copyright expenses, deferred income taxes and related valuation allowances, loss contingencies, fair value measurements, impairment assessments, capitalization of internal costs associated with construction and installation activities, useful lives of long-lived assets and actuarial liabilities associated with certain benefit plans. Actual results could differ from those estimates.

Certain prior period amounts have been reclassified to conform to the current period presentation. During the second quarter of 2020, we changed the presentation of certain operating costs and expenses in our condensed consolidated statements of operations in order to better align with management’s approach to monitoring and evaluating such costs. Specifically, we have combined the costs previously reported in the consolidated statement of operations’ captions “other operating” and “selling, general and administrative” into one line, which is now referred to as “other operating costs and expenses.” In conjunction with this change, we have provided additional disclosure of the nature of other operating costs and expenses by function, as set forth in note 12. This change in presentation did not have any impact on operating income, net loss or any of our key performance metrics. In addition, we have provided additional disclosure of the nature of our programming and other direct costs of services, as set forth in note 11.

7

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

March 31, 2021

(unaudited)

(2)    Accounting Changes and Recent Accounting Pronouncements

Accounting Changes

ASU 2018-14

In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14), which removes and modifies certain existing disclosure requirements and adds new disclosure requirements related to employer sponsored defined benefit pension or other postretirement plans. We adopted ASU 2018-14 effective January 1, 2021 and it did not have a material impact on the disclosures in our condensed consolidated financial statements.

Recent Accounting Pronouncements

ASU 2020-04 and ASU 2021-01

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04), which provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates, such as the LIBOR, which regulators in the U.K. have announced will be phased out by the end of 2021. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) (ASU 2021-01), which clarifies certain optional expedients and exceptions in ASC 848. The expedients and exceptions provided by ASU 2020-04 and ASU 2021-01 are for the application of U.S. GAAP to contracts, hedging relationships and other transactions affected by the rate reform, and will not be available after December 31, 2022, other than for certain hedging relationships entered into before December 31, 2022. We do not currently expect that the phase out of LIBOR will have a material impact on our consolidated financial statements.

ASU 2020-06

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity: Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which (i) reduces the number of accounting models for convertible instruments and allows more contracts to qualify for equity classification and (ii) makes targeted improvements to convertible instruments and earnings-per-share disclosure requirements. ASU 2020-06 is effective for annual reporting periods after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted, but no earlier than annual and interim periods in fiscal years beginning after December 15, 2020. While we are still evaluating the impact of ASU 2020-06, we do not currently expect it will have a material impact on our consolidated financial statements.

(3)    Current Expected Credit Losses

The changes in our trade receivables allowance for credit losses are set forth below:

	Three months ended March 31,
	2021		2020
	in millions
Balance at beginning of period	$	100.0	$	87.3
Provision for expected losses	12.3		15.7
Write-offs	(13.5)		(10.3)
Foreign currency translation adjustments and other	(3.9)		6.5
Balance at end of period	$	94.9	$	99.2

8

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

March 31, 2021

(unaudited)

(4)    Acquisitions

Pending Acquisition

Telefónica-Costa Rica Acquisition. On July 30, 2020, we entered into a definitive agreement to acquire Telefónica S.A.’s wireless operations in Costa Rica in an all-cash transaction based upon an enterprise value of $500 million on a cash- and debt-free basis. The transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close during the middle of 2021.

2020 Acquisition

AT&T Acquisition. On October 31, 2020, we acquired from AT&T all of the outstanding shares of the AT&T Acquired Entities, which following the closing of the AT&T Acquisition are referred to as Liberty Mobile and its subsidiaries. The operations acquired in the AT&T Acquisition provide consumer mobile and B2B services in Puerto Rico and the U.S. Virgin Islands.

The United States Department of Justice, as a condition of approval of the AT&T Acquisition, required us to divest certain B2B operations that were a part of our then-existing operations in Puerto Rico; a condition that we fulfilled in January 2021 by divesting those same B2B operations for a stated purchase price of $22 million. During the three months ended March, 31, 2021, we recognized a gain on sale of $9 million, which is included in impairment, restructuring and other operating items, net, in our condensed consolidated statement of operations.

AT&T will provide ongoing support to the AT&T Acquired Entities under the TSA for a period up to 36 months following the closing of the AT&T Acquisition. Services under the TSA include, but are not limited to, (i) network operations, (ii) customer service, (iii) finance and accounting, (iv) information technology, (v) sales and marketing and (vi) content-related services. We may terminate any services under the TSA upon sixty business days’ notice to AT&T in accordance with the terms and conditions of the TSA.

We have accounted for the AT&T Acquisition as a business combination using the acquisition method of accounting, whereby the total purchase price was allocated to the acquired identifiable net assets of the AT&T Acquired Entities based on assessments of their respective fair values, and the excess of the total purchase price over the fair values of these identifiable net assets was allocated to goodwill. The purchase price allocation to the assets acquired and liabilities assumed, including the residual amount allocated to goodwill, is based on preliminary information. During the measurement period, we will adjust the values attributed to our preliminary opening balance sheet, most notably acquired property and equipment, intangible assets, leases and income taxes, as additional information is obtained about facts and circumstances that existed as of the closing date of the AT&T Acquisition and as we complete our evaluation of valuations provided by a third-party specialist.

The preliminary information available to us to allocate consideration to acquired spectrum intangible assets is impacted by limitations on our ability to obtain all necessary information regarding the assets acquired, resulting in the on-going analysis of market data to establish an estimate. We expect the valuation of the spectrum intangible assets, which are currently based upon the historical values of the AT&T Acquired Entities, will require the anticipated use of either an adjusted “market” approach, which requires the calibration of observable market inputs to reflect the fair value of the assets acquired, or a combination of an adjusted market-based approach with an income-based approach, which requires a wide range of assumptions and inputs, including forecasting costs associated with building a complementary asset base.

The valuation of the customer relationship intangible assets, which is currently based upon a preliminary multi-period excess earnings valuation method, will require updates to assumptions and inputs used, including the determination of contributory asset charges dependent on the valuation of the property and equipment and spectrum intangible assets. For additional information regarding fair value methods used in acquisition accounting, see note 6.

9

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

March 31, 2021

(unaudited)

A summary of the preliminary opening balance sheet of the AT&T Acquired Entities at the October 31, 2020 acquisition date is presented in the following table (in millions):

Trade receivables	$	52.8
Prepaid expenses	0.1
Other current assets (a)	102.7
Goodwill (b)	317.7
Property and equipment	768.6
Intangible assets subject to amortization, net (c)	82.7
Intangible assets not subject to amortization (d)	894.4
Other assets (a) (e)	272.6
Accounts payable	(3.0)
Current portion of debt and finance lease obligations	(0.2)
Other accrued and current liabilities (e)	(64.3)
Long-term debt and finance lease obligations	(10.6)
Non-current deferred tax liabilities	(313.8)
Other long-term liabilities (e)	(167.3)
Total purchase price (f)	$	1,932.4

(a)Other current assets and other assets include $67 million and $39 million, respectively, in equipment installment-plan receivables.

(b)The goodwill recognized in connection with the AT&T Acquisition is primarily attributable to (i) the ability to take advantage of the AT&T Acquired Entities’ existing mobile network to gain immediate access to potential customers and (ii) synergies that are expected to be achieved through the integration of the AT&T Acquired Entities with Liberty Latin America. Due to the nature of the AT&T Acquisition, no tax deductions related to goodwill are expected.

(c)Amount includes intangible assets related to customer relationships. At October 31, 2020 the preliminary assessment of the weighted average useful life of the acquired customer relationship intangible assets was approximately 10 years.

(d)Amount represents the preliminary value of spectrum licenses.

(e)Other assets, other accrued and current liabilities and other long-term liabilities include $182 million, $33 million and $163 million related to operating lease right-of-use assets, current operating lease obligations and non-current operating lease obligations, respectively.

(f)Amount excludes $51 million and $5 million of direct acquisition costs, incurred during 2020 and 2019, respectively. Direct acquisition costs are included in impairment, restructuring and other operating items, net, in our consolidated statements of operations.

10

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

March 31, 2021

(unaudited)

Supplemental Pro Forma Information

The following unaudited pro forma financial information for the three months ended March 31, 2020 (in millions) is based on the historical carve-out financial statements of the AT&T Acquired Entities and is intended to provide information about how the AT&T Acquisition may have affected Liberty Latin America’s historical condensed consolidated financial statements if it had closed as of January 1, 2019. The pro forma financial information below is based on available information and assumptions that we believe are reasonable. The pro forma financial information is for illustrative and informational purposes only and is not intended to represent or be indicative of what our results of operations would have been had the AT&T Acquisition occurred on the date indicated nor should it be considered representative of our future financial condition or results of operations.

Revenue	$	1,143.0
Net loss attributable to Liberty Latin America shareholders	$	(153.3)

The pro forma information set forth in the table above includes tax-effected pro forma adjustments primarily related to:

i.the impact of estimated costs associated with the TSA that replaced parent-company allocations included in the historical financial statements of the AT&T Acquired Entities;

ii.the impact of new rate agreements associated with roaming, subsea and ethernet services;

iii.the alignment of accounting policies;

iv.interest expense related to additional borrowings in conjunction with the AT&T Acquisition; and

v.the elimination of direct acquisition costs.

(5)    Derivative Instruments

In general, we seek to enter into derivative instruments to protect against (i) increases in the interest rates on our variable-rate debt and (ii) foreign currency movements, particularly with respect to borrowings that are denominated in a currency other than the functional currency of the borrowing entity. In this regard, through our subsidiaries, we have entered into various derivative instruments to manage interest rate exposure and foreign currency exposure with respect to the U.S. dollar, the CLP, the COP and the JMD. With the exception of certain foreign currency forward contracts, we do not apply hedge accounting to our derivative instruments. Accordingly, changes in the fair values of most of our derivative instruments are recorded in realized and unrealized gains or losses on derivative instruments in our condensed consolidated statements of operations.

The following table provides details of the fair values of our derivative instrument assets and liabilities:

	March 31, 2021						December 31, 2020
	Current (a)		Long-term (a)		Total		Current (a)		Long-term (a)		Total
	in millions
Assets:
Cross-currency and interest rate derivative contracts (b)	$	0.6	$	20.6	$	21.2	$	0.7	$	4.4	$	5.1
Foreign currency forward contracts	0.1		—		0.1		—		—		—
Total	$	0.7	$	20.6	$	21.3	$	0.7	$	4.4	$	5.1
Liabilities:
Cross-currency and interest rate derivative contracts (b)	$	64.7	$	239.8	$	304.5	$	71.4	$	403.0	$	474.4
Foreign currency forward contracts	13.0		1.0		14.0		18.8		—		18.8
Total	$	77.7	$	240.8	$	318.5	$	90.2	$	403.0	$	493.2

(a)Our current derivative assets, long-term derivative assets and long-term derivative liabilities are included in other current assets, net, other assets, net, and other long-term liabilities, respectively, in our condensed consolidated balance sheets.

11

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

March 31, 2021

(unaudited)

(b)We consider credit risk relating to our and our counterparties’ nonperformance in the fair value assessment of our derivative instruments. In all cases, the adjustments take into account offsetting liability or asset positions within each of our primary borrowing groups (see note 8). The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in a net gain (loss) of ($21 million) and $33 million during the three months ended March 31, 2021 and 2020, respectively. These amounts are included in realized and unrealized gains on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note 6.

The derivative assets set forth in the table above exclude our Weather Derivatives as they are not accounted for at fair value. The premiums paid associated with our Weather Derivatives are included in other current assets, net, in our condensed consolidated balance sheets.

The details of our realized and unrealized gains on derivative instruments, net, are as follows:

	Three months ended March 31,
	2021		2020
	in millions
Cross-currency and interest rate derivative contracts	$	119.5	$	9.3
Foreign currency forward contracts	0.7		10.5
Weather Derivatives	(5.3)		(2.4)
Total	$	114.9	$	17.4

The following table sets forth the classification of the net cash inflows (outflows) of our derivative instruments:

	Three months ended March 31,
	2021		2020
	in millions
Operating activities	$	(23.8)	$	4.0
Investing activities	(0.7)		2.8
Financing activities (a)	(43.0)		(4.3)
Total	$	(67.5)	$	2.5

(a) The 2021 amount primarily relates to (i) $11 million associated with the settlement of interest rate swaps at VTR in connection with the refinancing of the VTR Credit Facilities and (ii) $32 million associated with the settlement of interest rate swaps at Liberty Puerto Rico in connection with the refinancing of the LPR Credit Facilities. For additional information regarding our debt refinancing activity, see note 8.

Counterparty Credit Risk

We are exposed to the risk that the counterparties to the derivative instruments of our borrowing groups will default on their obligations to us. We manage these credit risks through the evaluation and monitoring of the creditworthiness of, and concentration of risk with, the respective counterparties. In this regard, credit risk associated with our derivative instruments is spread across a relatively broad counterparty base of banks and financial institutions. Collateral has not been posted by either party under the derivative instruments of our borrowing groups. At March 31, 2021, our exposure to counterparty credit risk resulting from our net derivative position was not material.

Each of our borrowing groups has entered into derivative instruments under agreements with each counterparty that contain master netting arrangements that are applicable in the event of early termination by either party to such derivative instrument. The master netting arrangements under each of these master agreements are limited to the derivative instruments governed by the relevant master agreement within each individual borrowing group and are independent of similar arrangements of our other subsidiary borrowing groups.

12

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

March 31, 2021

(unaudited)

Details of our Derivative Instruments

Cross-currency Derivative Contracts

As noted above, we are exposed to foreign currency exchange rate risk in situations where our debt is denominated in a currency other than the functional currency of the operations whose cash flows support our ability to service, repay or refinance such debt. Although we generally seek to match the denomination of our borrowings with the functional currency of the operations that are supporting the respective borrowings, market conditions or other factors may cause us to enter into borrowing arrangements that are not denominated in the functional currency of the underlying operations (unmatched debt). Our policy is generally to provide for an economic hedge against foreign currency exchange rate movements, whenever possible and when cost effective to do so, by using derivative instruments to synthetically convert unmatched debt into the applicable underlying currency. The following table sets forth the total notional amounts and the related weighted average remaining contractual lives of our cross-currency swap contracts at March 31, 2021:

Borrowing group	Notional amount due from counterparty		Notional amount due to counterparty		Weighted average remaining life
	in millions				in years
C&W	$	56.3	COP	197,014.1	5.3
VTR	$	1,440.0	CLP	1,145,413.0	5.5

Interest Rate Derivative Contracts

Interest Rate Swaps

As noted above, we enter into interest rate swaps to protect against increases in the interest rates on our variable-rate debt. Pursuant to these derivative instruments, we typically pay fixed interest rates and receive variable interest rates on specified notional amounts. The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our interest rate swap contracts at March 31, 2021:

Borrowing group	Notional amount due from counterparty		Weighted average remaining life
	in millions		in years
C&W (a)	$	2,250.0	6.5
Liberty Puerto Rico	$	500.0	7.5
Cabletica	$	53.5	2.3

(a)Includes forward-starting derivative instruments.

13

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

March 31, 2021

(unaudited)

Basis Swaps

Basis swaps involve the exchange of attributes used to calculate our floating interest rates, including (i) the benchmark rate, (ii) the underlying currency and/or (iii) the borrowing period. We typically enter into these swaps to optimize our interest rate profile based on our current evaluations of yield curves, our risk management policies and other factors. The following table sets forth the total U.S. dollar equivalents of the notional amounts and the related weighted average remaining contractual lives of our basis swap contracts at March 31, 2021:

Borrowing group	Notional amount due from counterparty		Weighted average remaining life
	in millions		in years
C&W	$	1,510.0	0.8
Liberty Puerto Rico	$	500.0	0.8

Foreign Currency Forwards Contracts

We enter into foreign currency forward contracts with respect to non-functional currency exposure. The following table sets forth amounts due to and from our counterparties and the related weighted average remaining contractual lives of our foreign currency forward contracts at March 31, 2021:

Borrowing group	Notional amount due from counterparty		Notional amount due to counterparty		Weighted average remaining life
	in millions				in years
VTR	$	230.9	CLP	175,956.8	0.7
Cabletica	$	8.8	CRC	5,461.1	0.2

Interest Rate Floors

Interest rate floors provide protection against interest rates falling below a pre-set level. During the first quarter of 2021, we entered into a forward-starting interest rate floor at Liberty Puerto Rico associated with the refinancing of the LPR Credit Facilities. At March 31, 2021, the total notional amount of our interest rate floor was $500 million with a weighted average remaining contractual life of 7.5 years.

(6)    Fair Value Measurements

General

We record most of our derivative instruments at fair value. The reported fair values of our derivative instruments as of March 31, 2021 likely will not represent the value that will be paid or received upon the ultimate settlement or disposition of these assets and liabilities, as we expect that the values realized generally will be based on market conditions at the time of settlement, which may occur at the maturity of the derivative instrument or at the time of the repayment or refinancing of the underlying debt instrument.

U.S. GAAP provides for a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.

14

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

March 31, 2021

(unaudited)

Recurring Fair Value Measurements

Derivatives

In order to manage our interest rate and foreign currency exchange risk, we have entered into various derivative instruments, as further described in note 5. The recurring fair value measurements of these derivative instruments are determined using discounted cash flow models. Most of the inputs to these discounted cash flow models consist of, or are derived from, observable Level 2 data for substantially the full term of these derivative instruments. This observable data mostly includes interest rate futures and swap rates, which are retrieved or derived from available market data. Although we may extrapolate or interpolate this data, we do not otherwise alter this data in performing our valuations. We incorporate a credit risk valuation adjustment in our fair value measurements to estimate the impact of both our own nonperformance risk and the nonperformance risk of our counterparties. Our and our counterparties’ credit spreads represent our most significant Level 3 inputs, and these inputs are used to derive the credit risk valuation adjustments with respect to these instruments. As we would not expect changes in our or our counterparties’ credit spreads to have a significant impact on the valuations of these instruments, we have determined that these valuations fall under Level 2 of the fair value hierarchy. Our credit risk valuation adjustments with respect to our interest rate and cross-currency derivative contracts are quantified and further explained in note 5. Due to the lack of Level 2 inputs for the valuation of the Sable Currency Swaps held by Sable, we believe this valuation falls under Level 3 of the fair value hierarchy. The Sable Currency Swaps, which were settled during the first quarter of 2021, were our only Level 3 financial instruments. The fair value of the Sable Currency Swaps at December 31, 2020 was $1 million, which is included in other assets, net, in our condensed consolidated balance sheet. The change in the fair value of the Sable Currency Swaps resulted in net gains (losses) of ($1 million) and $10 million during the three months ended March 31, 2021 and 2020, respectively, which are reflected in realized and unrealized gains on derivative instruments, net, in our condensed consolidated statements of operations.

Nonrecurring Fair Value Measurements

Fair value measurements are also used for purposes of nonrecurring valuations performed in connection with acquisition accounting and impairment assessments.

Acquisition Accounting

The nonrecurring valuations associated with acquisition accounting, which use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy, primarily include the valuation of property and equipment, customer relationships and spectrum intangible assets, as further described below:

•Property and equipment. The valuation of property and equipment may use an indirect cost approach, which utilizes trends based on historical cost information, or a combination of indirect cost approach, market approach and direct replacement cost method, which considers factors such as current prices of the same or similar equipment, the age of the equipment and economic obsolescence.

•Customer relationships. The valuation of customer relationships is primarily based on an excess earnings methodology, which is a form of a discounted cash flow analysis. The excess earnings methodology for customer relationship intangible assets requires us to estimate the specific cash flows expected from the acquired customer relationships, considering such factors as estimated customer life, the revenue expected to be generated over the life of the customer relationships, contributory asset charges and other factors.

•Spectrum intangible assets. The valuation of spectrum intangible assets may use either an adjusted market-based approach, which requires the calibration of observable market inputs to reflect the fair value of the assets acquired, or a combination of an adjusted market-based approach with other methods, such as an income-based approach (e.g. the “greenfield” valuation method), which requires a wide range of assumptions and inputs, including forecasting costs associated with building a complementary asset base.

During the three months ended March 31, 2021 we performed a nonrecurring valuation related to the preliminary acquisition accounting for the AT&T Acquisition. For information related to the status of valuation work associated with assets acquired in connection with the AT&T Acquisition, see note 4.

15

Liberty Latin America Ltd.

Notes to Condensed Consolidated Financial Statements – (Continued)

March 31, 2021

(unaudited)

(7)    Long-lived Assets

Goodwill

Changes in the carrying amount of our goodwill are set forth below:

	January 1, 2021		Acquisitions and related adjustments		Foreign currency translation adjustments and other		March 31, 2021
	in millions
C&W Caribbean and Networks	$	3,112.0	$	—	$	(33.5)	$	3,078.5
C&W Panama	617.1		—		—		617.1
Liberty Puerto Rico	629.9		(34.5)		—		595.4
VTR	374.6		—		(3.6)		371.0
Cabletica	151.9		—		0.2		152.1
Total	$	4,885.5	$	(