Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
See the Glossary of defined terms at the beginning of this Quarterly Report on Form 10-Q.
The following discussion and analysis, which should be read in conjunction with our 2021 Form 10-K and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q, is intended to assist in providing an understanding of our financial condition, changes in financial condition and results of operations and is organized as follows:
•Forward-looking Statements. This section provides a description of certain factors that could cause actual results or events to differ materially from anticipated results or events.
•Overview. This section provides a general description of our business and recent events.
•Material Changes in Results of Operations. This section provides an analysis of our results of operations for the three and nine months ended September 30, 2022 and 2021.
•Material Changes in Financial Condition. This section provides an analysis of our liquidity, condensed consolidated statements of cash flows and contractual commitments.
Unless otherwise indicated, operational data (including subscriber statistics) is presented as of September 30, 2022.
Forward-looking Statements
Certain statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent that statements in this Quarterly Report on Form 10-Q are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In particular, statements under Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Item 3. Quantitative and Qualitative Disclosures About Market Risk, and Item 4. Controls and Procedures may contain forward-looking statements, including statements regarding: our business, products, foreign currency and finance strategies; subscriber growth and retention rates; changes in competitive, regulatory and economic factors; anticipated changes in our revenue, expenses, or growth rates; debt levels; our liquidity and our ability to access the liquidity of our subsidiaries; credit risks; internal control over financial reporting and the remediation of material weaknesses; foreign currency risks; interest rate risks; compliance with debt, financial and other covenants; our projected sources and uses of cash; the Liberty Telecomunicaciones Acquisition; the Claro Panama Acquisition; the impacts of the formation of the Chile JV; the effects and potential impacts of COVID-19 on our business and results of operations; reductions in operating and capital costs; our 2022 Share Repurchase Program; the outcome and impact of pending litigation; and other information and statements that are not historical fact. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. In addition to the risk factors described in Part I, Item 1A in our 2021 Form 10-K, the following are some but not all of the factors that could cause actual results or events to differ materially from anticipated results or events:
•economic and business conditions and industry trends in the countries in which we operate;
•the competitive environment in the industries in the countries in which we operate, including competitor responses to our products and services;
•fluctuations in currency exchange rates, inflation rates and interest rates;
•our relationships with third-party programming providers and broadcasters, some of which are also offering content directly to consumers, and our ability to maintain access to desirable programming on acceptable economic terms;
•our relationships with suppliers and licensors and the ability to maintain equipment, software and certain services;
•instability in global financial markets, including sovereign debt issues and related fiscal reforms;
•our ability to obtain additional financing and generate sufficient cash to meet our debt obligations;
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•the impact of restrictions contained in certain of our subsidiaries’ debt instruments;
•consumer disposable income and spending levels, including the availability and amount of individual consumer debt;
•changes in consumer viewing preferences and habits, including on mobile devices that function on various operating systems and specifications, limited bandwidth, and different processing power and screen sizes;
•customer acceptance of our existing service offerings, including our video, broadband internet, fixed-line telephony, mobile and business service offerings, and of new technology, programming alternatives and other products and services that we may offer in the future;
•our ability to manage rapid technological changes;
•the impact of 5G and wireless technologies on broadband internet;
•our ability to maintain or increase the number of subscriptions to our video, broadband internet, fixed-line telephony and mobile service offerings and our average revenue per household and mobile subscriber;
•our ability to provide satisfactory customer service, including support for new and evolving products and services;
•our ability to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers;
•the impact of our future financial performance, or market conditions generally, on the availability, terms and deployment of capital;
•changes in, or failure or inability to comply with, government regulations in the countries in which we operate and adverse outcomes from regulatory proceedings;
•government intervention that requires opening our broadband distribution networks to competitors;
•our ability to renew necessary regulatory licenses, concessions or other operating agreements and to otherwise acquire future spectrum or other licenses that we need to offer new mobile data or other technologies or services;
•our ability to obtain regulatory approval and satisfy other conditions necessary to close acquisitions and dispositions, and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions;
•our ability to successfully acquire new businesses and, if acquired, to integrate, realize anticipated efficiencies from and implement our business plan with respect to the businesses we have acquired or that we expect to acquire, such as with respect to the Chile JV, the Claro Panama Acquisition and the Liberty Telecomunicaciones Acquisition;
•changes in laws or treaties relating to taxation, or the interpretation thereof, in the U.S. or in other countries in which we operate and the results of any tax audits or tax disputes;
•changes in laws and government regulations that may impact the availability and cost of capital and the derivative instruments that hedge certain of our financial risks;
•the ability of suppliers and vendors, including third-party channel providers and broadcasters, to timely deliver quality products, equipment, software, services and access;
•the availability of attractive programming for our video services and the costs associated with such programming, including retransmission and copyright fees payable to public and private broadcasters;
•uncertainties inherent in the development and integration of new business lines and business strategies;
•our ability to adequately forecast and plan future network requirements, including the costs and benefits associated with our network extension and upgrade programs;
•the availability of capital for the acquisition and/or development of telecommunications networks and services, including property and equipment additions;
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•problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire, such as with respect to the AT&T Acquired Entities, the Liberty Telecomunicaciones Acquisition and the Claro Panama Acquisition;
•the effect of any of the identified material weaknesses in our internal control over financial reporting;
•piracy, targeted vandalism against our networks, and cybersecurity threats or other security breaches, including the leakage of sensitive customer data, which could harm our business or reputation;
•the outcome of any pending or threatened litigation;
•the loss of key employees and the availability of qualified personnel;
•the effect of any strikes, work stoppages or other industrial actions that could affect our operations;
•changes in the nature of key strategic relationships with partners and joint venturers;
•our equity capital structure;
•our ability to realize the full value of our intangible assets;
•changes in and compliance with applicable data privacy laws, rules, and regulations;
•our ability to recoup insurance reimbursements and settlements from third-party providers;
•our ability to comply with economic and trade sanctions laws, such as the U.S. Treasury Department’s Office of Foreign Assets Control;
•the impacts of climate change such as rising sea levels or increasing frequency and intensity of certain weather phenomena; and
•events that are outside of our control, such as political conditions and unrest in international markets, terrorist attacks, malicious human acts, hurricanes, volcanoes and other natural disasters, pandemics, including the COVID-19 pandemic, and other similar events.
The broadband distribution and mobile service industries are changing rapidly and, therefore, the forward-looking statements of expectations, plans and intent in this Quarterly Report on Form 10-Q are subject to a significant degree of risk. These forward-looking statements and the above described risks, uncertainties and other factors speak only as of the date of this Quarterly Report on Form 10-Q, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on any forward-looking statement.
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Overview
General
We are an international provider of fixed, mobile and subsea telecommunications services. We provide,
A.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 C&W Panama;
ii.Puerto Rico, through our reportable segment Liberty Puerto Rico;
iii.Costa Rica, through our reportable segment Liberty Costa Rica;
iv.Chile, through our reportable segment VTR; and
B.through our reportable segment C&W Networks & LatAm (as further described below), (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 approximately 40 markets in that region.
At September 30, 2022, we (i) owned and operated fixed networks that passed 8,588,600 homes and served 6,422,800 RGUs, comprising 2,889,600 broadband internet subscribers, 1,934,900 video subscribers and 1,598,300 fixed-line telephony subscribers, and (ii) served 8,376,900 mobile subscribers.
During the third quarter of 2022, we completed an organizational change with respect to our C&W operations whereby management of certain subsidiaries of C&W, which primarily operate our subsea and fiber optic cable networks, now report directly to the Senior Vice President, Infrastructure and Corporate Strategy of Liberty Latin America and no longer report to the former C&W Caribbean and Networks segment decision maker. As a result, the aforementioned subsidiaries of C&W are now a separate operating and reportable segment, herein referred to as the C&W Networks & LatAm segment. In connection with this change, we have restated our segment presentation for all periods to separately present (i) C&W Caribbean and (ii) C&W Networks & LatAm.
Transactions
Claro Panama Acquisition. On September 14, 2021, we entered into a definitive agreement to acquire América Móvil’s operations in Panama in an all-cash transaction based upon an enterprise value of $200 million on a cash- and debt-free basis. On July 1, 2022, we completed the acquisition of Claro Panama, which was financed through a combination of debt and existing cash.
Chile JV. On September 29, 2021, we entered into an agreement with América Móvil to contribute the Chile JV Entities to América Móvil’s Chilean operations to form the Chile JV that will be owned 50:50 by Liberty Latin America and América Móvil. Subsequent to September 30, 2022, we completed the formation of the Chile JV. During October 2022, and in connection with this transaction, we made a balancing payment to América Móvil totaling $76 million. The transaction did not trigger a change of control under VTR’s debt agreements, and was not subject to Liberty Latin America or América Móvil shareholder approvals. Beginning in October, we will account for our 50% interest in the Chile JV as an equity method investment.
Material Changes in Results of Operations
The comparability of our operating results during the three and nine months ended September 30, 2022 and 2021 is affected by acquisitions and FX effects. As we use the term, “organic” changes exclude FX and the impacts of acquisitions, each as further discussed below.
In the following discussion, we quantify the estimated impact on the operating results of the periods under comparison that is attributable to acquisitions. We acquired (i) Telefónica’s operations in Costa Rica during August 2021, (ii) 96% of Broadband VI, LLC’s operations in the U.S. Virgin Islands effective December 2021 and (iii) América Móvil’s operations in Panama during July 2022. With respect to acquisitions, organic changes and the calculations of our organic change percentages exclude the estimated operating results of an acquired entity during the first 12 months following the date of acquisition.
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Changes in foreign currency exchange rates may have a significant impact on our operating results, as VTR, Liberty Costa Rica and certain entities within C&W have functional currencies other than the U.S. dollar. Through September 30, 2022, our primary FX exchange risk relates to the Chilean peso. For example, the average FX rate (utilized to translate our condensed consolidated statements of operations) for the U.S. dollar per one Chilean peso appreciated by 20% and 17% for the three and nine months ended September 30, 2022, respectively, as compared to the corresponding periods in 2021. The impacts to the various components of our results of operations that are attributable to changes in FX are highlighted below. For information concerning our foreign currency risks and applicable foreign currency exchange rates, see Item 3. Quantitative and Qualitative Disclosures About Market Risk—Foreign Currency Rates below.
The amounts presented and discussed below represent 100% of the revenue and expenses of each reportable segment and our corporate operations. As we have the ability to control certain subsidiaries that are not wholly-owned, we include 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 (i) certain subsidiaries of (a) C&W and (b) Liberty Puerto Rico, and (ii) Liberty Costa Rica are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations.
We are subject to inflationary pressures with respect to certain costs and foreign currency exchange risk with respect to costs and expenses that are denominated in currencies other than the respective functional currencies of our reportable segments. Any cost increases that we are not able to pass on to our customers would result in increased pressure on our operating margins.
Consolidated Adjusted OIBDA
On a consolidated basis, Adjusted OIBDA is a non-U.S. GAAP measure. 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 determine how to allocate resources to segments. 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 (i) readily view operating trends, (ii) perform analytical comparisons and benchmarking between segments and (iii) identify strategies to improve operating performance in the different countries in which we operate. We believe our Adjusted OIBDA measure is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measures may not be directly comparable to similar measures used by other public companies. Adjusted OIBDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income or loss.
A reconciliation of total operating income (loss), the nearest U.S. GAAP measure, to Adjusted OIBDA on a consolidated basis, is presented below.
| Three months ended September 30, | Nine months ended September 30, |
| 2022 | 2021 | 2022 | 2021 |
| in millions |
| Operating income (loss) | $ | 152.9 | $ | 136.0 | $ | (15.4) | $ | 485.0 |
| Share-based compensation expense | 20.8 | 33.1 | 82.6 | 88.9 |
| Depreciation and amortization | 234.3 | 252.0 | 661.7 | 736.3 |
| Impairment, restructuring and other operating items, net | 7.0 | 22.1 | 583.4 | 41.3 |
| Consolidated Adjusted OIBDA | $ | 415.0 | $ | 443.2 | $ | 1,312.3 | $ | 1,351.5 |

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The following tables set forth the organic and non-organic changes in Adjusted OIBDA for the periods indicated:
| C&W Caribbean | C&W Panama | C&W Networks & LatAm | Liberty Puerto Rico | Liberty Costa Rica | VTR | Corporate | Intersegment eliminations | Consolidated |
| in millions |
| Adjusted OIBDA for the three months ending: |
| September 30, 2021 | $ | 119.6 | $ | 47.9 | $ | 62.0 | $ | 139.3 | $ | 24.0 | $ | 65.1 | $ | (14.7) | $ | — | $ | 443.2 |
| Organic changes related to: |
| Revenue | 11.5 | 3.8 | (1.3) | (3.8) | 12.2 | (37.5) | — | 1.4 | (13.7) |
| Programming and other direct costs | 2.8 | (2.0) | (2.3) | (3.1) | (0.7) | 9.6 | — | (0.6) | 3.7 |
| Other operating costs and expenses | (1.4) | (4.4) | 1.0 | (12.4) | (6.6) | 0.1 | (4.1) | (0.8) | (28.6) |
| Non-organic increases (decreases): |
| FX | 0.2 | — | (0.5) | — | (1.4) | (6.1) | — | — | (7.8) |
| Acquisitions | — | 1.4 | — | 11.5 | 5.3 | — | — | — | 18.2 |
| September 30, 2022 | $ | 132.7 | $ | 46.7 | $ | 58.9 | $ | 131.5 | $ | 32.8 | $ | 31.2 | $ | (18.8) | $ | — | $ | 415.0 |

| C&W Caribbean | C&W Panama | C&W Networks & LatAm | Liberty Puerto Rico | Liberty Costa Rica | VTR | Corporate | Intersegment eliminations | Consolidated |
| in millions |
| Adjusted OIBDA for the nine months ending: |
| September 30, 2021 | $ | 357.9 | $ | 137.5 | $ | 193.1 | $ | 445.6 | $ | 50.8 | $ | 204.3 | $ | (37.7) | $ | — | $ | 1,351.5 |
| Organic changes related to: |
| Revenue | 44.7 | 12.0 | 12.0 | (1.4) | 14.1 | (89.7) | 0.3 | (0.3) | (8.3) |
| Programming and other direct costs | (8.0) | (8.7) | (5.1) | (14.9) | (0.7) | 15.0 | — | 6.1 | (16.3) |
| Other operating costs and expenses | 5.3 | (10.6) | (2.1) | (23.5) | (9.5) | 4.4 | (8.0) | (5.8) | (49.8) |
| Non-organic increases (decreases): |
| FX | (2.8) | — | (1.3) | — | (3.1) | (18.4) | — | — | (25.6) |
| Acquisitions | — | 1.4 | — | 12.4 | 47.0 | — | — | — | 60.8 |
| September 30, 2022 | $ | 397.1 | $ | 131.6 | $ | 196.6 | $ | 418.2 | $ | 98.6 | $ | 115.6 | $ | (45.4) | $ | — | $ | 1,312.3 |

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Adjusted OIBDA Margin
The following table sets forth the Adjusted OIBDA margin (Adjusted OIBDA divided by revenue) of each of our reportable segments:
| Three months ended September 30, | Nine months ended September 30, |
| 2022 | 2021 | 2022 | 2021 |
| % |
| C&W Caribbean | 37.0 | 34.4 | 37.1 | 34.6 |
| C&W Panama | 27.1 | 35.8 | 29.8 | 34.9 |
| C&W Networks & LatAm | 57.3 | 58.2 | 60.2 | 60.3 |
| Liberty Puerto Rico | 35.8 | 39.0 | 38.1 | 41.3 |
| Liberty Costa Rica | 30.0 | 30.8 | 30.4 | 33.8 |
| VTR | 24.0 | 33.7 | 25.7 | 33.3 |

Adjusted OIBDA margin is impacted by organic changes in revenue, programming and other direct costs of services and other operating costs and expenses, as further discussed below. The decrease in Adjusted OIBDA margin for C&W Panama is due in part from the inclusion of Claro Panama operations following the Claro Panama Acquisition, which generates a lower Adjusted OIBDA margin compared to legacy operations. The decrease in the Adjusted OIBDA margin for VTR is primarily related to a decline in revenue, RGUs and ARPU resulting from significant competition in Chile, as further discussed below. Additionally, we incurred in aggregate $8 million and $19 million of integration costs during the three and nine months ended September 30, 2022, respectively, in our Liberty Puerto Rico, Liberty Costa Rica and C&W Panama segments. During the three and nine months ended September 30, 2021, we incurred $3 million and $6 million, respectively, in our Liberty Puerto Rico and Liberty Costa Rica segments.
Revenue
All of our segments derive their revenue primarily from (i) residential fixed services, including video, broadband internet and fixed-line telephony, (ii) residential mobile services and (iii) B2B services. C&W Networks & LatAm also provides wholesale communication services over its subsea and terrestrial fiber optic cable networks.
While not specifically discussed in the below explanations of the changes in revenue, we are experiencing significant competition in all of our markets. This competition has an adverse impact on our ability to increase or maintain our RGUs and/or ARPU.
Variances in the subscription revenue that we receive from our customers are a function of (i) changes in the number of RGUs or mobile subscribers during the period and (ii) changes in ARPU. Changes in ARPU can be attributable to (i) changes in prices, (ii) changes in bundling or promotional discounts, (iii) changes in the tier of services selected, (iv) variances in subscriber usage patterns and (v) the overall mix of fixed and mobile products during the period. In the following discussion, we discuss ARPU changes in terms of the net impact of the above factors on the ARPU that is derived from our video, broadband internet, fixed-line telephony and mobile products.
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The following tables set forth the organic and non-organic changes in revenue by reportable segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Acquisitions | Organic |
| in millions |
| C&W Caribbean | $ | 359.1 | $ | 347.4 | $ | 11.7 | $ | 0.2 | $ | — | $ | 11.5 |
| C&W Panama | 172.5 | 133.9 | 38.6 | — | 34.8 | 3.8 |
| C&W Networks & LatAm | 102.8 | 106.5 | (3.7) | (2.4) | — | (1.3) |
| Liberty Puerto Rico | 366.9 | 357.3 | 9.6 | — | 13.4 | (3.8) |
| Liberty Costa Rica | 109.2 | 77.8 | 31.4 | (4.3) | 23.5 | 12.2 |
| VTR | 129.8 | 193.1 | (63.3) | (25.8) | — | (37.5) |
| Corporate | 5.4 | 5.4 | — | — | — | — |
| Intersegment eliminations | (23.7) | (25.1) | 1.4 | — | — | 1.4 |
| Total | $ | 1,222.0 | $ | 1,196.3 | $ | 25.7 | $ | (32.3) | $ | 71.7 | $ | (13.7) |

| Nine months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Acquisitions | Organic |
| in millions |
| C&W Caribbean | $ | 1,069.5 | $ | 1,033.0 | $ | 36.5 | $ | (8.2) | $ | — | $ | 44.7 |
| C&W Panama | 441.3 | 394.5 | 46.8 | — | 34.8 | 12.0 |
| C&W Networks & LatAm | 326.8 | 320.0 | 6.8 | (5.2) | — | 12.0 |
| Liberty Puerto Rico | 1,096.4 | 1,078.5 | 17.9 | — | 19.3 | (1.4) |
| Liberty Costa Rica | 324.6 | 150.3 | 174.3 | (9.4) | 169.6 | 14.1 |
| VTR | 450.6 | 612.7 | (162.1) | (72.4) | — | (89.7) |
| Corporate | 16.5 | 16.2 | 0.3 | — | — | 0.3 |
| Intersegment eliminations | (71.3) | (71.0) | (0.3) | — | — | (0.3) |
| Total | $ | 3,654.4 | $ | 3,534.2 | $ | 120.2 | $ | (95.2) | $ | 223.7 | $ | (8.3) |

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C&W Caribbean. C&W Caribbean’s revenue by major category is set forth below:
| Three months ended September 30, | Increase (decrease) |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential revenue: |
| Residential fixed revenue: |
| Subscription revenue | $ | 122.2 | $ | 118.1 | $ | 4.1 | 3 |
| Non-subscription revenue | 7.6 | 8.5 | (0.9) | (11) |
| Total residential fixed revenue | 129.8 | 126.6 | 3.2 | 3 |
| Residential mobile revenue: |
| Service revenue | 78.8 | 76.1 | 2.7 | 4 |
| Interconnect, inbound roaming, equipment sales and other | 17.3 | 14.9 | 2.4 | 16 |
| Total residential mobile revenue | 96.1 | 91.0 | 5.1 | 6 |
| Total residential revenue | 225.9 | 217.6 | 8.3 | 4 |
| B2B revenue | 133.2 | 129.8 | 3.4 | 3 |
| Total | $ | 359.1 | $ | 347.4 | $ | 11.7 | 3 |

| Nine months ended September 30, | Increase (decrease) |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential revenue: |
| Residential fixed revenue: |
| Subscription revenue | $ | 363.5 | $ | 353.7 | $ | 9.8 | 3 |
| Non-subscription revenue | 25.2 | 25.9 | (0.7) | (3) |
| Total residential fixed revenue | 388.7 | 379.6 | 9.1 | 2 |
| Residential mobile revenue: |
| Service revenue | 232.9 | 222.9 | 10.0 | 4 |
| Interconnect, inbound roaming, equipment sales and other | 48.1 | 45.0 | 3.1 | 7 |
| Total residential mobile revenue | 281.0 | 267.9 | 13.1 | 5 |
| Total residential revenue | 669.7 | 647.5 | 22.2 | 3 |
| B2B revenue | 399.8 | 385.5 | 14.3 | 4 |
| Total | $ | 1,069.5 | $ | 1,033.0 | $ | 36.5 | 4 |

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The details of the changes in C&W Caribbean’s revenue during the three and nine months ended September 30, 2022, as compared to the corresponding periods in 2021, are set forth below (in millions):
| Three-month comparison | Nine-month comparison |
| Increase (decrease) in residential fixed subscription revenue due to change in: |
| Average number of RGUs (a) | $ | 2.9 | $ | 15.1 |
| ARPU (b) | 1.1 | (2.8) |
| Decrease in residential fixed non-subscription revenue | (0.9) | (0.6) |
| Total increase in residential fixed revenue | 3.1 | 11.7 |
| Increase in residential mobile service revenue (c) | 2.7 | 11.9 |
| Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (d) | 2.2 | 3.2 |
| Increase in B2B revenue (e) | 3.5 | 17.9 |
| Total organic increase | 11.5 | 44.7 |
| Impact of FX | 0.2 | (8.2) |
| Total | $ | 11.7 | $ | 36.5 |

(a)The increases are primarily attributable to higher average broadband internet RGUs.
(b)The increase during the three-month comparison is due to higher ARPU from fixed-line telephony and video services, partially offset by lower ARPU from broadband internet service. The decrease during the nine-month comparison is due lower ARPU from video and broadband internet services, partially offset by higher ARPU from fixed-line telephony service.
(c)The increases are attributable to the net effect of (i) higher average numbers of mobile subscribers, mostly due to growth from fixed-mobile convergence efforts and increases in sales initiatives, and (ii) declines in ARPU as a result of certain pricing strategies.
(d)The increases are primarily attributable to higher inbound roaming traffic.
(e)The increases are attributable to higher revenues from (i) fixed and managed services, primarily due to broadband internet services-related growth, (ii) mobile services, driven by higher average numbers of subscribers, and (iii) for the nine-month comparison, certain non-recurring B2B contracts.
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C&W Panama. C&W Panama’s revenue by major category is set forth below:
| Three months ended September 30, | Increase (decrease) |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential revenue: |
| Residential fixed revenue: |
| Subscription revenue | $ | 27.3 | $ | 22.3 | $ | 5.0 | 22 |
| Non-subscription revenue | 1.7 | 2.3 | (0.6) | (26) |
| Total residential fixed revenue | 29.0 | 24.6 | 4.4 | 18 |
| Residential mobile revenue: |
| Service revenue | 65.8 | 43.6 | 22.2 | 51 |
| Interconnect, inbound roaming, equipment sales and other | 14.4 | 11.6 | 2.8 | 24 |
| Total residential mobile revenue | 80.2 | 55.2 | 25.0 | 45 |
| Total residential revenue | 109.2 | 79.8 | 29.4 | 37 |
| B2B revenue | 63.3 | 54.1 | 9.2 | 17 |
| Total | $ | 172.5 | $ | 133.9 | $ | 38.6 | 29 |

| Nine months ended September 30, | Increase (decrease) |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential revenue: |
| Residential fixed revenue: |
| Subscription revenue | $ | 75.1 | $ | 64.7 | $ | 10.4 | 16 |
| Non-subscription revenue | 5.7 | 7.2 | (1.5) | (21) |
| Total residential fixed revenue | 80.8 | 71.9 | 8.9 | 12 |
| Residential mobile revenue: |
| Service revenue | 152.7 | 132.8 | 19.9 | 15 |
| Interconnect, inbound roaming, equipment sales and other | 35.9 | 33.2 | 2.7 | 8 |
| Total residential mobile revenue | 188.6 | 166.0 | 22.6 | 14 |
| Total residential revenue | 269.4 | 237.9 | 31.5 | 13 |
| B2B revenue | 171.9 | 156.6 | 15.3 | 10 |
| Total | $ | 441.3 | $ | 394.5 | $ | 46.8 | 12 |

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The details of the changes in C&W Panama’s revenue during the three and nine months ended September 30, 2022, as compared to the corresponding periods in 2021, are set forth below (in millions):
| Three-month comparison | Nine-month comparison |
| Increase (decrease) in residential fixed subscription revenue due to change in: |
| Average number of RGUs (a) | $ | 3.5 | $ | 10.3 |
| ARPU (b) | (0.7) | (2.1) |
| Decrease in residential fixed non-subscription revenue | (0.7) | (1.6) |
| Total increase in residential fixed revenue | 2.1 | 6.6 |
| Increase (decrease) in residential mobile service revenue (c) | 0.5 | (1.8) |
| Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue | (2.3) | (2.4) |
| Increase in B2B revenue (d) | 3.5 | 9.6 |
| Total organic increase | 3.8 | 12.0 |
| Impact of an acquisition | 34.8 | 34.8 |
| Total | $ | 38.6 | $ | 46.8 |

(a)The increases are primarily attributable to higher average broadband internet and video RGUs.
(b)The decreases are primarily due to lower ARPU from fixed-line telephony as customers shift to lower priced plans.
(c)The increase in the three-month comparison is primarily due to the net effect of (i) a decrease in prepaid subscribers and (ii) an increase in postpaid subscribers, largely driven by migrations from prepaid plans. The decrease in the nine-month comparison is primarily due to the net effect of (i) lower ARPU from prepaid mobile services, mainly attributable to lower recharging activity, and (ii) higher average numbers of postpaid mobile subscribers.
(d)The increases are primarily due to (i) increases in the volume of certain projects and (ii) higher revenue from data services.
C&W Networks & LatAm. C&W Networks & LatAm’s revenue by major category is set forth below:
| Three months ended September 30, | Increase (decrease) |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| B2B revenue: |
| Service revenue | $ | 27.9 | $ | 27.0 | $ | 0.9 | 3 |
| Subsea network revenue | 74.9 | 79.5 | (4.6) | (6) |
| Total | $ | 102.8 | $ | 106.5 | $ | (3.7) | (3) |

| Nine months ended September 30, | Increase |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| B2B revenue: |
| Service revenue | $ | 84.8 | $ | 80.6 | $ | 4.2 | 5 |
| Subsea network revenue | 242.0 | 239.4 | 2.6 | 1 |
| Total | $ | 326.8 | $ | 320.0 | $ | 6.8 | 2 |

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The details of the changes in C&W Networks & LatAm’s revenue during the three and nine months ended September 30, 2022, as compared to the corresponding periods in 2021, are set forth below (in millions):
| Three-month comparison | Nine-month comparison |
| Increase in B2B service revenue (a) | $ | 2.3 | $ | 7.0 |
| Increase (decrease) in B2B subsea network revenue (b) (c) | (3.6) | 5.0 |
| Total organic increase (decrease) | (1.3) | 12.0 |
| Impact of FX | (2.4) | (5.2) |
| Total | $ | (3.7) | $ | 6.8 |

(a)The increases are primarily attributable to (i) higher B2B connectivity revenue, (ii) growth in managed services and (iii) for the nine-month comparison, higher equipment sales.
(b)The decrease during the three-month comparison is primarily due to (i) lower lease capacity revenue, as sales growth was offset by service disconnections and lower revenue from existing customers due to price erosion, and (ii) lower affiliate revenue.
(c)The increase during the nine-month comparison is primarily due to (i) the net positive impact associated with the recognition of deferred revenue and penalties upon termination of customer contracts, (ii) lower affiliate revenue, and (iii) a net increase in lease capacity revenue, resulting from customer growth, partially offset by service disconnections and lower revenue from existing customers due to price erosion.
Liberty Puerto Rico. Liberty Puerto Rico’s revenue by major category is set forth below:
| Three months ended September 30, | Increase (decrease) |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential fixed revenue: |
| Subscription revenue | $ | 111.7 | $ | 110.6 | $ | 1.1 | 1 |
| Non-subscription revenue | 5.0 | 5.0 | — | — |
| Total residential fixed revenue | 116.7 | 115.6 | 1.1 | 1 |
| Residential mobile revenue: |
| Service revenue | 112.2 | 122.0 | (9.8) | (8) |
| Interconnect, inbound roaming, equipment sales and other | 64.1 | 55.3 | 8.8 | 16 |
| Total residential mobile revenue | 176.3 | 177.3 | (1.0) | (1) |
| Total residential revenue | 293.0 | 292.9 | 0.1 | — |
| B2B revenue | 53.0 | 54.2 | (1.2) | (2) |
| Other revenue | 20.9 | 10.2 | 10.7 | 105 |
| Total | $ | 366.9 | $ | 357.3 | $ | 9.6 | 3 |

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| Nine months ended September 30, | Increase (decrease) |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential fixed revenue: |
| Subscription revenue | $ | 343.0 | $ | 327.1 | $ | 15.9 | 5 |
| Non-subscription revenue | 16.0 | 14.1 | 1.9 | 13 |
| Total residential fixed revenue | 359.0 | 341.2 | 17.8 | 5 |
| Residential mobile revenue: |
| Service revenue | 343.5 | 359.8 | (16.3) | (5) |
| Interconnect, inbound roaming, equipment sales and other | 188.2 | 188.8 | (0.6) | — |
| Total residential mobile revenue | 531.7 | 548.6 | (16.9) | (3) |
| Total residential revenue | 890.7 | 889.8 | 0.9 | — |
| B2B revenue | 164.3 | 161.5 | 2.8 | 2 |
| Other revenue | 41.4 | 27.2 | 14.2 | 52 |
| Total | $ | 1,096.4 | $ | 1,078.5 | $ | 17.9 | 2 |

The details of the changes in Liberty Puerto Rico’s revenue during the three and nine months ended September 30, 2022, as compared to the corresponding periods in 2021, are set forth below (in millions):
| Three-month comparison | Nine-month comparison |
| Increase (decrease) in residential fixed subscription revenue due to change in: |
| Average number of RGUs (a) | $ | 5.1 | $ | 18.6 |
| ARPU (b) | (6.3) | (10.0) |
| Increase (decrease) in residential fixed non-subscription revenue | (0.5) | 0.5 |
| Total increase (decrease) in residential fixed revenue | (1.7) | 9.1 |
| Decrease in residential mobile service revenue (c) | (9.8) | (16.3) |
| Increase (decrease) in residential mobile interconnect, inbound roaming, equipment sales and other revenue (d) | 8.8 | (0.6) |
| Increase (decrease) in B2B revenue | (1.2) | 2.8 |
| Increase in other revenue | 0.1 | 3.6 |
| Total organic decrease | (3.8) | (1.4) |
| Impact of an acquisition (e) | 13.4 | 19.3 |
| Total | $ | 9.6 | $ | 17.9 |

(a)The increases are primarily attributable to higher average broadband internet and video RGUs.
(b)The decreases are primarily attributable to lower ARPU from video and broadband internet services, which include the impact of credits issued to customers during the third quarter of 2022 as a result of Hurricane Fiona. In addition, the decrease for the nine-month comparison includes the impact of credits issued to customers during the second quarter of 2022 as a result of power outages.
(c)The decreases are primarily due to declines in the average number of mobile subscribers and lower ARPU from mobile services.
(d)The increase for the three-month comparison is primarily due to higher volumes of handset sales and higher inbound roaming. The decrease for the nine-month comparison is primarily due to the net effect of higher promotions associated with handset sales and higher inbound roaming.
(e)The impact of an acquisition primarily relates to FCC revenue recognized during the third quarter of 2022.
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Liberty Costa Rica. Liberty Costa Rica’s revenue by major category is set forth below:
| Three months ended September 30, | Increase (decrease) |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential revenue: |
| Residential fixed revenue: |
| Subscription revenue | $ | 33.8 | $ | 34.9 | $ | (1.1) | (3) |
| Non-subscription revenue | 1.0 | 1.5 | (0.5) | (33) |
| Total residential fixed revenue | 34.8 | 36.4 | (1.6) | (4) |
| Residential mobile revenue: |
| Service revenue | 48.0 | 28.5 | 19.5 | 68 |
| Interconnect, inbound roaming, equipment sales and other | 16.4 | 7.0 | 9.4 | 134 |
| Total residential mobile revenue | 64.4 | 35.5 | 28.9 | 81 |
| Total residential revenue | 99.2 | 71.9 | 27.3 | 38 |
| B2B revenue | 10.0 | 5.9 | 4.1 | 69 |
| Total | $ | 109.2 | $ | 77.8 | $ | 31.4 | 40 |

| Nine months ended September 30, | Increase (decrease) |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential revenue: |
| Residential fixed revenue: |
| Subscription revenue | $ | 101.9 | $ | 104.1 | $ | (2.2) | (2) |
| Non-subscription revenue | 2.6 | 4.8 | (2.2) | (46) |
| Total residential fixed revenue | 104.5 | 108.9 | (4.4) | (4) |
| Residential mobile revenue: |
| Service revenue | 142.8 | 28.5 | 114.3 | 401 |
| Interconnect, inbound roaming, equipment sales and other | 48.5 | 7.0 | 41.5 | 593 |
| Total residential mobile revenue | 191.3 | 35.5 | 155.8 | 439 |
| Total residential revenue | 295.8 | 144.4 | 151.4 | 105 |
| B2B revenue | 28.8 | 5.9 | 22.9 | 388 |
| Total | $ | 324.6 | $ | 150.3 | $ | 174.3 | 116 |

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The details of the changes in Liberty Costa Rica’s revenue during the three and nine months ended September 30, 2022, as compared to the corresponding periods in 2021, are set forth below (in millions):
| Three-month comparison | Nine-month comparison |
| Increase (decrease) in residential fixed subscription revenue due to change in: |
| Average number of RGUs (a) | $ | 4.2 | $ | 11.5 |
| ARPU (b) | (3.1) | (6.8) |
| Decrease in residential fixed non-subscription revenue (c) | (0.6) | (2.3) |
| Total increase in residential fixed revenue | 0.5 | 2.4 |
| Increase in residential mobile service revenue (d) | 5.4 | 5.4 |
| Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) | 4.6 | 4.6 |
| Increase in B2B revenue | 1.7 | 1.7 |
| Total organic increase | 12.2 | 14.1 |
| Impact of an acquisition | 23.5 | 169.6 |
| Impact of FX | (4.3) | (9.4) |
| Total | $ | 31.4 | $ | 174.3 |

(a)The increases are primarily attributable to higher average broadband internet RGUs.
(b)The decreases are primarily due to the net effect of (i) lower ARPU from video services and fixed-line telephony, (ii) the impact of product mix and (iii) for the nine-month comparison, higher ARPU from broadband internet services.
(c)The decreases are primarily attributable to a discontinued Costa Rica government-sponsored assistance program that provided computer equipment to low-income households.
(d)The increases are primarily attributable to higher average mobile subscribers.
(e)The increases are primarily attributable to (i) higher inbound roaming and (ii) higher volumes of handset sales.
VTR. VTR’s revenue by major category is set forth below:
| Three months ended September 30, | Decrease |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential revenue: |
| Residential fixed revenue: |
| Subscription revenue | $ | 112.7 | $ | 167.8 | $ | (55.1) | (33) |
| Non-subscription revenue | 2.4 | 3.8 | (1.4) | (37) |
| Total residential fixed revenue | 115.1 | 171.6 | (56.5) | (33) |
| Residential mobile revenue: |
| Service revenue | 7.8 | 11.5 | (3.7) | (32) |
| Interconnect, inbound roaming, equipment sales and other | 0.8 | 1.7 | (0.9) | (53) |
| Total residential mobile revenue | 8.6 | 13.2 | (4.6) | (35) |
| Total residential revenue | 123.7 | 184.8 | (61.1) | (33) |
| B2B revenue | 6.1 | 8.3 | (2.2) | (27) |
| Total | $ | 129.8 | $ | 193.1 | $ | (63.3) | (33) |

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| Nine months ended September 30, | Decrease |
| 2022 | 2021 | $ | % |
| in millions, except percentages |
| Residential revenue: |
| Residential fixed revenue: |
| Subscription revenue | $ | 392.3 | $ | 532.9 | $ | (140.6) | (26) |
| Non-subscription revenue | 8.9 | 11.2 | (2.3) | (21) |
| Total residential fixed revenue | 401.2 | 544.1 | (142.9) | (26) |
| Residential mobile revenue: |
| Service revenue | 25.8 | 37.7 | (11.9) | (32) |
| Interconnect, inbound roaming, equipment sales and other | 2.9 | 5.8 | (2.9) | (50) |
| Total residential mobile revenue | 28.7 | 43.5 | (14.8) | (34) |
| Total residential revenue | 429.9 | 587.6 | (157.7) | (27) |
| B2B revenue | 20.7 | 25.1 | (4.4) | (18) |
| Total | $ | 450.6 | $ | 612.7 | $ | (162.1) | (26) |

The details of the changes in VTR’s revenue during the three and nine months ended September 30, 2022, as compared to the corresponding periods in 2021, are set forth below (in millions):
| Three-month comparison | Nine-month comparison |
| Decrease in residential fixed subscription revenue due to change in: |
| Average number of RGUs (a) | $ | (10.1) | $ | (22.2) |
| ARPU (b) | (22.7) | (55.5) |
| Decrease in residential fixed non-subscription revenue | (0.9) | (0.9) |
| Total decrease in residential fixed revenue | (33.7) | (78.6) |
| Decrease in residential mobile service revenue (c) | (2.3) | (7.8) |
| Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue | (0.8) | (2.5) |
| Decrease in B2B revenue | (0.7) | (0.8) |
| Total organic decrease | (37.5) | (89.7) |
| Impact of FX | (25.8) | (72.4) |
| Total | $ | (63.3) | $ | (162.1) |

(a)The decreases are primarily attributable to lower average broadband internet and video RGUs.
(b)The decreases are primarily due to lower ARPU from broadband internet services, mainly associated with (i) increased competition that generally resulted in (a) the churn of higher-ARPU customers and (b) the addition of lower-ARPU customers, and (ii) strategic initiatives implemented during the first quarter of 2022. Higher discounts and lower-ARPU customers related to video and telephony services also contributed to the decline in ARPU.
(c)The decreases are primarily due to (i) lower ARPU from mobile services, mainly associated with strategic initiatives implemented during the first quarter of 2022, and (ii) for the nine-month comparison, lower average numbers of mobile subscribers.
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Programming and other direct costs of services
Programming and other direct costs of services include programming and copyright costs, interconnect and access costs, equipment costs, which primarily relate to costs of mobile handsets and other devices, and other direct costs related to our operations. Programming and copyright costs, which represent a significant portion of our operating costs, may increase in future periods as a result of (i) higher costs associated with the expansion of our digital video content, including rights associated with ancillary product offerings and rights that provide for the broadcast of live sporting events, (ii) rate increases or (iii) growth in the number of our video subscribers.
Consolidated. The following tables set forth the organic and non-organic changes in programming and other direct costs of services on a consolidated basis for the periods indicated.
| Three months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Acquisitions | Organic |
| in millions |
| Programming and copyright | $ | 91.6 | $ | 108.5 | $ | (16.9) | $ | (6.7) | $ | 0.5 | $ | (10.7) |
| Interconnect | 88.6 | 92.0 | (3.4) | (1.7) | 6.8 | (8.5) |
| Equipment and other | 118.9 | 96.7 | 22.2 | (0.9) | 7.6 | 15.5 |
| Total programming and other direct costs of services | $ | 299.1 | $ | 297.2 | $ | 1.9 | $ | (9.3) | $ | 14.9 | $ | (3.7) |

| Nine months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Acquisitions | Organic |
| in millions |
| Programming and copyright | $ | 302.1 | $ | 334.7 | $ | (32.6) | $ | (20.4) | $ | 0.5 | $ | (12.7) |
| Interconnect | 262.7 | 252.7 | 10.0 | (5.9) | 23.2 | (7.3) |
| Equipment and other | 338.5 | 277.4 | 61.1 | (1.8) | 26.6 | 36.3 |
| Total programming and other direct costs of services | $ | 903.3 | $ | 864.8 | $ | 38.5 | $ | (28.1) | $ | 50.3 | $ | 16.3 |

C&W Caribbean. The following tables set forth the organic and non-organic changes in programming and other direct costs of services for our C&W Caribbean segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Programming and copyright | $ | 21.0 | $ | 22.4 | $ | (1.4) | $ | — | $ | (1.4) |
| Interconnect | 29.2 | 30.7 | (1.5) | — | (1.5) |
| Equipment and other | 20.1 | 20.0 | 0.1 | — | 0.1 |
| Total programming and other direct costs of services | $ | 70.3 | $ | 73.1 | $ | (2.8) | $ | — | $ | (2.8) |

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| Nine months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Programming and copyright | $ | 66.9 | $ | 69.3 | $ | (2.4) | $ | (0.5) | $ | (1.9) |
| Interconnect | 87.4 | 89.4 | (2.0) | (1.7) | (0.3) |
| Equipment and other | 60.6 | 50.8 | 9.8 | (0.4) | 10.2 |
| Total programming and other direct costs of services | $ | 214.9 | $ | 209.5 | $ | 5.4 | $ | (2.6) | $ | 8.0 |

•Equipment and other: The organic increase during the nine-month comparison is primarily due to (i) higher port-to-port capacity fees incurred in connection with the purchase of wholesale services from C&W Networks & LatAm, (ii) higher costs associated with certain non-recurring B2B contracts and (iii) higher volumes of handset sales.
C&W Panama. The following tables set forth the organic and non-organic changes in programming and other direct costs of services for our C&W Panama segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) from: |
| Increase | An acquisition | Organic |
| 2022 | 2021 |
| in millions |
| Programming and copyright | $ | 4.9 | $ | 3.7 | $ | 1.2 | $ | 0.5 | $ | 0.7 |
| Interconnect | 16.5 | 14.6 | 1.9 | 3.8 | (1.9) |
| Equipment and other | 30.9 | 23.1 | 7.8 | 4.6 | 3.2 |
| Total programming and other direct costs of services | $ | 52.3 | $ | 41.4 | $ | 10.9 | $ | 8.9 | $ | 2.0 |

| Nine months ended September 30, | Increase (decrease) from: |
| Increase | An acquisition | Organic |
| 2022 | 2021 |
| in millions |
| Programming and copyright | $ | 13.2 | $ | 11.3 | $ | 1.9 | $ | 0.5 | $ | 1.4 |
| Interconnect | 46.9 | 45.3 | 1.6 | 3.8 | (2.2) |
| Equipment and other | 77.2 | 63.1 | 14.1 | 4.6 | 9.5 |
| Total programming and other direct costs of services | $ | 137.3 | $ | 119.7 | $ | 17.6 | $ | 8.9 | $ | 8.7 |

•Programming and copyright: The organic increases are primarily due to RGU growth.
•Interconnect: The organic decreases are primarily due to lower call volumes.
•Equipment and other: The organic increases are primarily due to (i) higher costs associated with certain non-recurring B2B contracts and (ii) for the nine-month comparison, higher volumes of handset sales.
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C&W Networks & LatAm. The following tables set forth the organic and non-organic changes in programming and other direct costs of services for our C&W Networks & LatAm segment for the periods indicated.
| Three months ended September 30, | Increase | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Interconnect | $ | 12.0 | $ | 11.6 | $ | 0.4 | $ | (0.2) | $ | 0.6 |
| Equipment and other | 3.9 | 2.6 | 1.3 | (0.4) | 1.7 |
| Total programming and other direct costs of services | $ | 15.9 | $ | 14.2 | $ | 1.7 | $ | (0.6) | $ | 2.3 |

| Nine months ended September 30, | Increase | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Interconnect | $ | 34.9 | $ | 33.9 | $ | 1.0 | $ | (0.4) | $ | 1.4 |
| Equipment and other | 10.3 | 7.2 | 3.1 | (0.6) | 3.7 |
| Total programming and other direct costs of services | $ | 45.2 | $ | 41.1 | $ | 4.1 | $ | (1.0) | $ | 5.1 |

•Equipment and other: The organic increases are primarily due to costs associated with sales-type leases on CPE installed on long-term customer solutions.
Liberty Puerto Rico. The following tables set forth the organic and non-organic changes in programming and other direct costs of services for our Liberty Puerto Rico segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) from: |
| Increase (decrease) | An acquisition | Organic |
| 2022 | 2021 |
| in millions |
| Programming and copyright | $ | 27.9 | $ | 27.2 | $ | 0.7 | $ | — | $ | 0.7 |
| Interconnect | 20.0 | 26.6 | (6.6) | 0.7 | (7.3) |
| Equipment and other | 57.5 | 47.6 | 9.9 | 0.2 | 9.7 |
| Total programming and other direct costs of services | $ | 105.4 | $ | 101.4 | $ | 4.0 | $ | 0.9 | $ | 3.1 |

| Nine months ended September 30, | Increase (decrease) from: |
| Increase (decrease) | An acquisition | Organic |
| 2022 | 2021 |
| in millions |
| Programming and copyright | $ | 83.8 | $ | 82.2 | $ | 1.6 | $ | — | $ | 1.6 |
| Interconnect | 61.3 | 68.0 | (6.7) | 2.0 | (8.7) |
| Equipment and other | 170.7 | 148.2 | 22.5 | 0.5 | 22.0 |
| Total programming and other direct costs of services | $ | 315.8 | $ | 298.4 | $ | 17.4 | $ | 2.5 | $ | 14.9 |

•Interconnect: The organic decreases are primarily due to lower roaming costs.
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•Equipment and other: The organic increases are primarily associated with (i) higher volumes of handset sales, (ii) increases related to lower of cost or market adjustments on equipment-related inventory recognized during the second and third quarters of 2022, and (iii) an unfavorable charge associated with equipment costs included in the transition services agreement entered into with AT&T. Also contributing to the organic increase for the nine-month comparison are (a) higher volumes of equipment sales associated with a contract entered into in the first quarter of 2022 and (b) equipment-related integration costs incurred during the first half of 2022.
Liberty Costa Rica. The following tables set forth the organic and non-organic changes in programming and other direct costs of services for our Liberty Costa Rica segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| An acquisition |
| 2022 | 2021 | FX | Organic |
| in millions |
| Programming and copyright | $ | 7.8 | $ | 9.1 | $ | (1.3) | $ | (0.5) | $ | — | $ | (0.8) |
| Interconnect | 7.9 | 5.2 | 2.7 | (0.2) | 2.3 | 0.6 |
| Equipment and other | 9.7 | 6.2 | 3.5 | (0.2) | 2.8 | 0.9 |
| Total programming and other direct costs of services | $ | 25.4 | $ | 20.5 | $ | 4.9 | $ | (0.9) | $ | 5.1 | $ | 0.7 |

| Nine months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| An acquisition |
| 2022 | 2021 | FX | Organic |
| in millions |
| Programming and copyright | $ | 25.6 | $ | 26.9 | $ | (1.3) | $ | (1.8) | $ | — | $ | 0.5 |
| Interconnect | 24.2 | 6.5 | 17.7 | (0.3) | 17.4 | 0.6 |
| Equipment and other | 28.6 | 7.7 | 20.9 | (0.2) | 21.5 | (0.4) |
| Total programming and other direct costs of services | $ | 78.4 | $ | 41.1 | $ | 37.3 | $ | (2.3) | $ | 38.9 | $ | 0.7 |

VTR. The following tables set forth the organic and non-organic changes in programming and other direct costs of services for our VTR segment for the periods indicated.
| Three months ended September 30, | Decrease | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Programming and copyright | $ | 30.9 | $ | 46.1 | $ | (15.2) | $ | (6.2) | $ | (9.0) |
| Interconnect | 6.8 | 7.4 | (0.6) | (1.3) | 0.7 |
| Equipment and other | 0.9 | 2.5 | (1.6) | (0.3) | (1.3) |
| Total programming and other direct costs of services | $ | 38.6 | $ | 56.0 | $ | (17.4) | $ | (7.8) | $ | (9.6) |

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| Nine months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Programming and copyright | $ | 113.5 | $ | 145.0 | $ | (31.5) | $ | (18.1) | $ | (13.4) |
| Interconnect | 21.9 | 21.8 | 0.1 | (3.5) | 3.6 |
| Equipment and other | 3.2 | 9.0 | (5.8) | (0.6) | (5.2) |
| Total programming and other direct costs of services | $ | 138.6 | $ | 175.8 | $ | (37.2) | $-37.2 | $ | (22.2) | $ | (15.0) |

•Programming and copyright: The organic decreases are primarily due to the net effect of (i) lower average subscribers, (ii) lower content rates and (iii) the positive impacts associated with the renegotiation of certain content agreements. The decrease during the nine-month comparison was also impacted by (a) the positive impact associated with the reassessment of an accrual associated with video-on-demand content-related costs during the second quarter of 2022 and (b) an increase related to a settlement associated with a programming contract that occurred during the first quarter of 2022.
•Interconnect: The organic increases are primarily due to (i) higher rates and (ii) higher national leased capacity.
•Equipment and other: The organic decreases are primarily due to lower volumes of equipment sales.
Other operating costs and expenses
Other operating costs and expenses set forth in the tables below comprise the following cost categories:
•Personnel and contract labor-related costs, which primarily include salary-related and cash bonus expenses, net of capitalizable labor costs, and temporary contract labor costs;
•Network-related expenses, which primarily include costs related to network access, system power, core network, and CPE repair, maintenance and test costs;
•Service-related costs, which primarily include professional services, information technology-related services, audit, legal and other services;
•Commercial, which primarily includes sales and marketing costs, such as advertising, commissions and other sales and marketing-related costs, and customer care costs related to outsourced call centers;
•Facility, provision, franchise and other, which primarily includes facility-related costs, provision for bad debt expense, franchise-related fees, bank fees, insurance, vehicle-related, travel and entertainment and other operating-related costs; and
•Share-based compensation expense that relates to (i) equity awards issued to our employees and Directors and (ii) certain bonus-related expenses that are paid in the form of equity.
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Consolidated. The following tables set forth the organic and non-organic changes in other operating costs and expenses on a consolidated basis for the periods indicated.
| Three months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Acquisitions | Organic |
| in millions |
| Personnel and contract labor | $ | 155.3 | $ | 142.9 | $ | 12.4 | $ | (3.6) | $ | 4.4 | $ | 11.6 |
| Network-related | 88.6 | 86.0 | 2.6 | (4.4) | 6.0 | 1.0 |
| Service-related | 52.8 | 47.4 | 5.4 | (1.9) | 3.2 | 4.1 |
| Commercial | 58.9 | 57.4 | 1.5 | (3.0) | 8.5 | (4.0) |
| Facility, provision, franchise and other | 152.3 | 122.2 | 30.1 | (2.3) | 16.5 | 15.9 |
| Share-based compensation expense | 20.8 | 33.1 | (12.3) | — | — | (12.3) |
| Total other operating costs and expenses | $ | 528.7 | $ | 489.0 | $ | 39.7 | $ | (15.2) | $ | 38.6 | $ | 16.3 |

| Nine months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Acquisitions | Organic |
| in millions |
| Personnel and contract labor | $ | 453.6 | $ | 425.1 | $ | 28.5 | $ | (9.9) | $ | 12.2 | $ | 26.2 |
| Network-related | 250.1 | 247.1 | 3.0 | (11.5) | 16.5 | (2.0) |
| Service-related | 158.6 | 140.2 | 18.4 | (4.7) | 12.0 | 11.1 |
| Commercial | 182.5 | 163.5 | 19.0 | (9.4) | 31.2 | (2.8) |
| Facility, provision, franchise and other | 394.0 | 342.0 | 52.0 | (6.0) | 40.7 | 17.3 |
| Share-based compensation expense | 82.6 | 88.9 | (6.3) | (1.2) | 0.8 | (5.9) |
| Total other operating costs and expenses | $ | 1,521.4 | $ | 1,406.8 | $ | 114.6 | $ | (42.7) | $ | 113.4 | $ | 43.9 |

C&W Caribbean. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our C&W Caribbean segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Personnel and contract labor | $ | 51.3 | $ | 50.9 | $ | 0.4 | $ | (0.1) | $ | 0.5 |
| Network-related | 36.4 | 38.8 | (2.4) | — | (2.4) |
| Service-related | 18.1 | 15.6 | 2.5 | — | 2.5 |
| Commercial | 12.1 | 12.3 | (0.2) | — | (0.2) |
| Facility, provision, franchise and other | 38.2 | 37.1 | 1.1 | 0.1 | 1.0 |
| Share-based compensation expense | 4.3 | 9.7 | (5.4) | 0.1 | (5.5) |
| Total other operating costs and expenses | $ | 160.4 | $ | 164.4 | $ | (4.0) | $ | 0.1 | $ | (4.1) |

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| Nine months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Personnel and contract labor | $ | 154.9 | $ | 154.1 | $ | 0.8 | $ | (0.8) | $ | 1.6 |
| Network-related | 108.0 | 119.2 | (11.2) | (1.0) | (10.2) |
| Service-related | 52.1 | 49.0 | 3.1 | (0.2) | 3.3 |
| Commercial | 33.8 | 35.3 | (1.5) | (0.4) | (1.1) |
| Facility, provision, franchise and other | 108.7 | 108.0 | 0.7 | (0.4) | 1.1 |
| Share-based compensation expense | 16.6 | 22.7 | (6.1) | — | (6.1) |
| Total other operating costs and expenses | $ | 474.1 | $ | 488.3 | $ | (14.2) | $ | (2.8) | $ | (11.4) |

•Network-related: The organic decreases are primarily due to the net impact of (i) lower capacity charges associated with the use of C&W Networks & LatAm’s subsea network, (ii) savings on vendor costs as a result of the renegotiation and cancellation of certain contracts as well as lower overall spending and (iii) higher utilities costs.
•Service-related: The organic increases are primarily due to charges allocated from our Corporate operations.
C&W Panama. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our C&W Panama segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) from: |
| Increase (decrease) | An acquisition | Organic |
| 2022 | 2021 |
| in millions |
| Personnel and contract labor | $ | 20.6 | $ | 16.8 | $ | 3.8 | $ | 3.0 | $ | 0.8 |
| Network-related | 14.4 | 9.6 | 4.8 | 4.5 | 0.3 |
| Service-related | 3.5 | 3.7 | (0.2) | 0.7 | (0.9) |
| Commercial | 9.6 | 4.7 | 4.9 | 4.9 | — |
| Facility, provision, franchise and other | 25.4 | 9.8 | 15.6 | 11.4 | 4.2 |
| Share-based compensation expense | 1.0 | 1.0 | — | — | — |
| Total other operating costs and expenses | $ | 74.5 | $ | 45.6 | $ | 28.9 | $ | 24.5 | $ | 4.4 |

| Nine months ended September 30, | Increase (decrease) from: |
| Increase | An acquisition | Organic |
| 2022 | 2021 |
| in millions |
| Personnel and contract labor | $ | 56.9 | $ | 50.9 | $ | 6.0 | $ | 3.0 | $ | 3.0 |
| Network-related | 34.6 | 29.6 | 5.0 | 4.5 | 0.5 |
| Service-related | 11.7 | 11.4 | 0.3 | 0.7 | (0.4) |
| Commercial | 20.4 | 14.8 | 5.6 | 4.9 | 0.7 |
| Facility, provision, franchise and other | 48.8 | 30.6 | 18.2 | 11.4 | 6.8 |
| Share-based compensation expense | 4.4 | 2.6 | 1.8 | — | 1.8 |
| Total other operating costs and expenses | $ | 176.8 | $ | 139.9 | $ | 36.9 | $ | 24.5 | $ | 12.4 |

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•Personnel and contract labor: The organic increases are primarily due to higher staff costs related to increased sales activities.
•Facility, provision, franchise and other: The organic increases are primarily driven by higher bad debt provisions.
C&W Networks & LatAm. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our C&W Networks & LatAm segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Personnel and contract labor | $ | 10.9 | $ | 10.0 | $ | 0.9 | $ | (0.7) | $ | 1.6 |
| Network-related | 10.2 | 14.0 | (3.8) | (0.2) | (3.6) |
| Service-related | 1.1 | 0.8 | 0.3 | — | 0.3 |
| Commercial | 0.4 | 0.3 | 0.1 | — | 0.1 |
| Facility, provision, franchise and other | 5.4 | 5.2 | 0.2 | (0.4) | 0.6 |
| Share-based compensation expense | 1.0 | 1.1 | (0.1) | — | (0.1) |
| Total other operating costs and expenses | $ | 29.0 | $ | 31.4 | $ | (2.4) | $ | (1.3) | $ | (1.1) |

| Nine months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Personnel and contract labor | $ | 32.9 | $ | 33.2 | $ | (0.3) | $ | (1.5) | $ | 1.2 |
| Network-related | 32.3 | 35.7 | (3.4) | (0.6) | (2.8) |
| Service-related | 3.2 | 2.8 | 0.4 | — | 0.4 |
| Commercial | 1.0 | 0.9 | 0.1 | — | 0.1 |
| Facility, provision, franchise and other | 15.6 | 13.2 | 2.4 | (0.8) | 3.2 |
| Share-based compensation expense | 3.7 | 3.2 | 0.5 | — | 0.5 |
| Total other operating costs and expenses | $ | 88.7 | $ | 89.0 | $ | (0.3) | $ | (2.9) | $ | 2.6 |

•Network-related: The organic decreases are primarily due to (i) lower subsea cable repairs and (ii) lower operating and maintenance-related costs.
•Facility, provision, franchise and other: The organic increases are primarily due to higher bad debt provisions.
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Liberty Puerto Rico. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our Liberty Puerto Rico segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) from: |
| Increase (decrease) | An acquisition | Organic |
| 2022 | 2021 |
| in millions |
| Personnel and contract labor | $ | 41.2 | $ | 36.8 | $ | 4.4 | $ | 0.4 | $ | 4.0 |
| Network-related | 16.9 | 13.6 | 3.3 | (0.1) | 3.4 |
| Service-related | 9.2 | 10.3 | (1.1) | 0.2 | (1.3) |
| Commercial | 11.0 | 11.8 | (0.8) | — | (0.8) |
| Facility, provision, franchise and other | 51.7 | 44.1 | 7.6 | 0.5 | 7.1 |
| Share-based compensation expense | 1.2 | 1.7 | (0.5) | — | (0.5) |
| Total other operating costs and expenses | $ | 131.2 | $ | 118.3 | $ | 12.9 | $ | 1.0 | $ | 11.9 |

| Nine months ended September 30, | Increase (decrease) from: |
| Increase (decrease) | An acquisition | Organic |
| 2022 | 2021 |
| in millions |
| Personnel and contract labor | $ | 120.1 | $ | 104.4 | $ | 15.7 | $ | 1.4 | $ | 14.3 |
| Network-related | 38.5 | 37.5 | 1.0 | 0.1 | 0.9 |
| Service-related | 34.5 | 30.1 | 4.4 | 1.0 | 3.4 |
| Commercial | 35.3 | 35.4 | (0.1) | — | (0.1) |
| Facility, provision, franchise and other | 134.0 | 127.1 | 6.9 | 1.9 | 5.0 |
| Share-based compensation expense | 6.0 | 5.8 | 0.2 | — | 0.2 |
| Total other operating costs and expenses | $ | 368.4 | $ | 340.3 | $ | 28.1 | $ | 4.4 | $ | 23.7 |

•Personnel and contract labor: The organic increases are primarily due to the net effect of (i) higher salaries and other personnel costs, including the impact of higher amortization of deferred commissions in connection with the AT&T Acquisition, and (ii) lower bonus-related expenses.
•Network-related: The organic increases, and in particular the increase for the three-month comparison, are primarily due to incremental expenses incurred in operating the network as a result of the impacts from Hurricane Fiona, and increases in network-related integration costs associated with the AT&T Acquisition. For the nine-month comparison, the increase was further impacted by a decline associated with the termination of the transition services agreement entered into with AT&T associated with network maintenance and licenses.
•Service-related: The organic increase during the nine-month comparison is primarily due to higher costs associated with (i) charges allocated from our Corporate operations and (ii) software licenses. Service-related integration costs associated with the AT&T Acquisition remained relatively flat during each of the three and nine-month comparisons, but are expected to grow in future periods.
•Facility, provision, franchise and other: The organic increases for both the three and nine-month comparisons were impacted by increases related to (i) a reassessment of an accrual associated with certain services being provided under a transaction service agreement and (ii) utility costs. The increase for the nine-month comparison is further impacted by the net effect of (i) a decrease in bad debt expense resulting from lower expected credit loss rates established during the second quarter of 2022, (ii) an increase in rent expense, driven by purchase accounting adjustments associated with the AT&T Acquisition that were recorded during the second quarter of 2021, and (iii) a decrease resulting from a payment made during the second quarter of 2021 to settle certain 2011 property tax claims.
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Liberty Costa Rica. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our Liberty Costa Rica segment for the periods indicated.
| Three months ended September 30, | Increase | Increase (decrease) from: |
| An acquisition |
| 2022 | 2021 | FX | Organic |
| in millions |
| Personnel and contract labor | $ | 6.4 | $ | 5.6 | $ | 0.8 | $ | (0.3) | $ | 1.0 | $ | 0.1 |
| Network-related | 8.1 | 5.2 | 2.9 | (0.2) | 1.6 | 1.5 |
| Service-related | 6.5 | 3.0 | 3.5 | (0.2) | 2.3 | 1.4 |
| Commercial | 13.0 | 8.0 | 5.0 | (0.5) | 3.6 | 1.9 |
| Facility, provision, franchise and other | 17.0 | 11.5 | 5.5 | (0.8) | 4.6 | 1.7 |
| Share-based compensation expense | 0.5 | 0.3 | 0.2 | — | — | 0.2 |
| Total other operating costs and expenses | $ | 51.5 | $ | 33.6 | $ | 17.9 | $ | (2.0) | $ | 13.1 | $ | 6.8 |

| Nine months ended September 30, | Increase | Increase (decrease) from: |
| An acquisition |
| 2022 | 2021 | FX | Organic |
| in millions |
| Personnel and contract labor | $ | 20.2 | $ | 12.6 | $ | 7.6 | $ | (0.8) | $ | 7.8 | $ | 0.6 |
| Network-related | 24.9 | 11.2 | 13.7 | (0.8) | 11.9 | 2.6 |
| Service-related | 17.9 | 4.8 | 13.1 | (0.5) | 10.3 | 3.3 |
| Commercial | 39.7 | 11.9 | 27.8 | (0.8) | 26.3 | 2.3 |
| Facility, provision, franchise and other | 44.9 | 17.9 | 27.0 | (1.1) | 27.4 | 0.7 |
| Share-based compensation expense | 1.9 | 0.7 | 1.2 | — | 0.8 | 0.4 |
| Total other operating costs and expenses | $ | 149.5 | $ | 59.1 | $ | 90.4 | $ | (4.0) | $ | 84.5 | $ | 9.9 |

•Network-related: The organic increases are primarily due to higher maintenance-related costs.
•Service-related: The organic increases are primarily due to higher information technology-related project costs.
•Commercial: The organic increases are primarily due to higher third-party sales commission costs.
•Facility, provision, franchise and other costs: The organic increases are primarily due to higher bad debt provisions.
•Included in the increases from an acquisition in the tables above, are significant integration-related costs associated with the Liberty Telecomunicaciones Acquisition, which we expect will continue to grow during the remainder of 2022.
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VTR. The following tables set forth the organic and non-organic changes in other operating costs and expenses for our VTR segment for the periods indicated.
| Three months ended September 30, | Increase (decrease) | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Personnel and contract labor | $ | 14.6 | $ | 13.9 | $ | 0.7 | $ | (2.8) | $ | 3.5 |
| Network-related | 17.5 | 20.2 | (2.7) | (3.5) | 0.8 |
| Service-related | 7.5 | 8.2 | (0.7) | (1.6) | 0.9 |
| Commercial | 12.7 | 20.3 | (7.6) | (2.7) | (4.9) |
| Facility, provision, franchise and other | 7.7 | 9.4 | (1.7) | (1.3) | (0.4) |
| Share-based compensation expense | 0.2 | 4.2 | (4.0) | (0.1) | (3.9) |
| Total other operating costs and expenses | $ | 60.2 | $ | 76.2 | $ | (16.0) | $ | (12.0) | $ | (4.0) |

| Nine months ended September 30, | Decrease | Increase (decrease) from: |
| 2022 | 2021 | FX | Organic |
| in millions |
| Personnel and contract labor | $ | 41.8 | $ | 46.8 | $ | (5.0) | $ | (6.8) | $ | 1.8 |
| Network-related | 55.7 | 63.8 | (8.1) | (9.1) | 1.0 |
| Service-related | 24.0 | 28.0 | (4.0) | (4.0) | — |
| Commercial | 52.2 | 65.2 | (13.0) | (8.2) | (4.8) |
| Facility, provision, franchise and other | 22.7 | 28.8 | (6.1) | (3.7) | (2.4) |
| Share-based compensation expense | 7.6 | 8.1 | (0.5) | (1.2) | 0.7 |
| Total other operating costs and expenses | $ | 204.0 | $ | 240.7 | $ | (36.7) | $ | (33.0) | $ | (3.7) |

•Personnel and contract labor: The organic increases are primarily due to higher salaries and other personnel costs due to the effect of inflation. For the nine-month comparison, this increase is partially offset by lower bonus-related expenses.
•Commercial: The organic decreases are due to the net effect of (i) lower sales commissions and (ii) lower call center activity. For the nine-month comparison, the decrease is partially offset by higher marketing and advertising costs, primarily related to a commitment to sponsor a music festival that was postponed during each of the past two years due to COVID-19.
•Facility, provision, franchise and other costs: The organic decreases are primarily due to the net effect of (i) lower operating lease rent expense as a result of ceasing the amortization of our right of use assets in connection with held for sale accounting of the Chile JV Entities, as further described in note 8 to our condensed consolidated financial statements, and (ii) higher bad debt provisions.
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Corporate. The following tables set forth the organic changes in other operating costs and expenses for our corporate operations for the periods indicated.
| Three months ended September 30, | Organic increase (decrease) |
| 2022 | 2021 |
| in millions |
| Personnel and contract labor | $ | 10.2 | $ | 9.2 | $ | 1.0 |
| Service-related | 6.9 | 5.7 | 1.2 |
| Facility, provision, franchise and other | 7.3 | 5.4 | 1.9 |
| Share-based compensation expense | 12.6 | 15.1 | (2.5) |
| Total other operating costs and expenses | $ | 37.0 | $ | 35.4 | $ | 1.6 |

| Nine months ended September 30, | Organic increase (decrease) |
| 2022 | 2021 |
| in millions |
| Personnel and contract labor | $ | 26.7 | $ | 23.4 | $ | 3.3 |
| Service-related | 15.2 | 14.0 | 1.2 |
| Facility, provision, franchise and other | 20.2 | 16.7 | 3.5 |
| Share-based compensation expense | 42.4 | 45.8 | (3.4) |
| Total other operating costs and expenses | $ | 104.5 | $ | 99.9 | $ | 4.6 |

•Personnel and contract labor: The organic increases are primarily attributable to higher salaries and other personnel costs, mainly resulting from higher staffing levels in our operations in Panama.
•Facility, provision, franchise and other: The organic increases are primarily due to an increase in travel-related costs.
Results of Operations (below Adjusted OIBDA)
Depreciation and amortization
Our depreciation and amortization expense decreased $18 million or 7% and $75 million or 10% during the three and nine months ended September 30, 2022, respectively, as compared to the corresponding periods in 2021, primarily due to the net effect of (i) declines of $41 million and $138 million, respectively, at VTR as we ceased recording depreciation expense during the third quarter of 2021 when we began accounting for the Chile JV Entities as held for sale, (ii) increases at Liberty Costa Rica and C&W Panama resulting from the Liberty Telecomunicaciones Acquisition and the Claro Panama Acquisition, respectively, and (iii) increases in property and equipment additions, mainly at Liberty Puerto Rico.
Impairment, restructuring and other operating items, net
The details of our impairment, restructuring and other operating items, net, are as follows:
| Three months ended September 30, | Nine months ended September 30, |
| 2022 | 2021 | 2022 | 2021 |
| in millions |
| Impairment charges (a) | $ | — | $ | 0.1 | $ | 558.5 | $ | 3.0 |
| Restructuring charges | 4.6 | 9.6 | 10.2 | 24.6 |
| Other operating items, net (b) | 2.4 | 12.4 | 14.7 | 13.7 |
| Total | $ | 7.0 | $ | 22.1 | $ | 583.4 | $ | 41.3 |

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(a)The amount for the nine months ended September 30, 2022 primarily consists of goodwill impairment charges associated with certain reporting units within the C&W Caribbean segment. For additional information, see note 7 to our condensed consolidated financial statements.
(b)The 2022 amounts primarily includes direct acquisition costs. The 2021 amounts primarily include direct acquisition costs related to the Liberty Telecomunicaciones Acquisition and, for the nine-month period, a gain on the disposition of certain B2B operations in our Liberty Puerto Rico segment that was completed in January 2021.
Interest expense
Our interest expense increased $12 million and $19 million during the three and nine months ended September 30, 2022, respectively, as compared to the corresponding periods in 2021. The increases are primarily attributable to (i) higher weighted-average interest rates and (ii) higher average outstanding debt balances.
For additional information regarding our outstanding indebtedness, see note 9 to our condensed consolidated financial statements.
It is possible that the interest rates on (i) any new borrowings could be higher than the current interest rates on our existing indebtedness and (ii) our variable-rate indebtedness could increase in future periods. As further discussed in note 5 to our condensed consolidated financial statements, we use derivative instruments to manage our interest rate risks.
Realized and unrealized gains or losses on derivative instruments, net
Our realized and unrealized gains or losses on derivative instruments primarily include (i) unrealized changes in the fair values of our derivative instruments that are non-cash in nature until such time as the derivative contracts are fully or partially settled and (ii) realized gains or losses upon the full or partial settlement of the derivative contracts. The details of our realized and unrealized gains on derivative instruments, net, are as follows:
| Three months ended September 30, | Nine months ended September 30, |
| 2022 | 2021 | 2022 | 2021 |
| in millions |
| Cross-currency and interest rate derivative contracts (a) | $ | 159.3 | $ | 285.1 | $ | 417.8 | $ | 464.2 |
| Foreign currency forward contracts | (16.0) | 15.4 | (9.3) | 20.1 |
| Weather Derivatives (b) | (7.9) | (8.5) | (23.5) | (20.1) |
| Total | $ | 135.4 | $ | 292.0 | $ | 385.0 | $ | 464.2 |

(a)The gains during the three and nine months ended September 30, 2022 and 2021 are primarily attributable to the net effect of (i) changes in interest rates and (ii) changes in FX rates, predominantly due to changes in the value of the Chilean peso relative to the U.S. dollar. These amounts include net losses associated with changes in the credit risk valuation adjustments of $5 million and $15 million during the three months ended September 30, 2022 and 2021, respectively, and $14 million and $44 million during the nine months ended September 30, 2022 and 2021, respectively. Included in the credit risk valuation adjustments are net losses of $3 million and $12 million during the three months ended September 30, 2022 and 2021, respectively, and $3 million and $29 million during the nine months ended September 30, 2022 and 2021, respectively, related to the Chile JV Entities.
(b)Amounts represent the amortization of premiums associated with our Weather Derivatives.
For additional information concerning our derivative instruments, see notes 5 and 6 to our condensed consolidated financial statements and Item 3. Quantitative and Qualitative Disclosures about Market Risk below.
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Foreign currency transaction gains or losses, net
Our foreign currency transaction gains or losses primarily result from the remeasurement of monetary assets and liabilities that are denominated in currencies other than the underlying functional currency of the applicable entity. Unrealized foreign currency transaction gains or losses are computed based on period-end exchange rates and are non-cash in nature until such time as the amounts are settled. The details of our foreign currency transaction losses, net, are as follows:
| Three months ended September 30, | Nine months ended September 30, |
| 2022 | 2021 | 2022 | 2021 |
| in millions |
| U.S. dollar-denominated debt issued by a Chilean peso functional currency entity | $ | (61.7) | $ | (145.2) | $ | (181.1) | $ | (177.0) |
| Intercompany payables and receivables denominated in a currency other than the entity’s functional currency | (15.7) | 6.9 | (5.0) | (19.9) |
| Other (a) | 20.9 | 2.1 | (35.8) | (9.1) |
| Total | $ | (56.5) | $ | (136.2) | $ | (221.9) | $ | (206.0) |

(a) Primarily includes (i) third-party receivables and payables denominated in a currency other than an entity’s functional currency, (ii) U.S. dollar-denominated debt issued by a CRC functional currency entity and (iii) cash denominated in a currency other than an entity’s functional currency.
Gains or losses on debt modification and extinguishment, net
Our gains or losses on debt modification and extinguishment generally include (i) premiums or discounts associated with redemptions and/or repurchases of debt, (ii) the write-off of unamortized deferred financing costs, premiums and/or discounts and/or (iii) breakage fees.
We recognized gains (losses) on debt extinguishment of $41 million during each of the three and nine months ended September 30, 2022 and ($2 million) and ($25 million) during the three and nine months ended September 30, 2021, respectively. The gains during 2022 are associated with the buyback of certain VTR debt at fair value. The losses during 2021 are primarily associated with refinancing activity at Liberty Puerto Rico and VTR.
For additional information concerning our gains and losses on debt extinguishment, see note 9 to our condensed consolidated financial statements.
Other income or expense, net
Our other income or expense, net, generally includes (i) certain amounts associated with our defined benefit plans, including interest expense and expected return on plan assets, (ii) interest income on cash and cash equivalents, and (iii) share of affiliate income or loss. Other income or expense was not material for the three and nine months ended September 30, 2022. We had other expense of $41 million and $42 million during the three and nine months ended September 30, 2021, respectively, which primarily relates to an impairment associated with a cost method investment.
Income tax expense
We recognized income tax expense of $39 million and $102 million during the three and nine months ended September 30, 2022, respectively, and $40 million and $111 million during the three and nine months ended September 30, 2021, respectively.
For the three and nine months ended September 30, 2022, the income tax expense attributable to our earnings (loss) before income taxes differs from the amounts computed using the statutory tax rate, primarily due to the detrimental effects of non-deductible goodwill impairment, negative effects of permanent tax differences, such as non-deductible expenses, tax effect of the enactment of a Barbados Pandemic Contribution Levy, and inclusion of withholding taxes on cross-border payments. These negative impacts to our effective tax rate were partially offset by the beneficial effects of permanent tax differences, such as non-taxable income and net decreases in valuation allowances. Additionally, for the three months ended September 30, 2022, income tax expense reflects the detrimental effects of international rate differences and for the nine months ended September 30, 2022, income tax expense reflects the beneficial effects of international rate differences.
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For the three and nine months ended September 30, 2021, the income tax expense attributable to our earnings before income taxes differs from the amounts computed using the statutory tax rate, primarily due to detrimental effects of international rate differences, net increases in valuation allowances, negative effects of permanent tax differences, such as non-deductible expenses, and inclusion of withholding taxes on cross-border payments. These negative impacts to our effective tax rate were partially offset by the beneficial effects of permanent tax differences, such as non-taxable income. For the three months ended September 30, 2021, income tax expense reflects net favorable changes in uncertain tax positions. For the nine months ended September 30, 2021, income tax expense reflects net unfavorable changes in uncertain tax positions.
For additional information regarding our income taxes, see note 14 to our condensed consolidated financial statements.
Net earnings or loss
The following table sets forth selected summary financial information of our net earnings (loss):
| Three months ended September 30, | Nine months ended September 30, |
| 2022 | 2021 | 2022 | 2021 |
| in millions |
| Operating income (loss) | $ | 152.9 | $ | 136.0 | $ | (15.4) | $ | 485.0 |
| Net non-operating expenses | $ | (31.0) | $ | (24.3) | $ | (218.6) | $ | (206.3) |
| Income tax expense | $ | (39.1) | $ | (39.8) | $ | (101.6) | $ | (110.7) |
| Net earnings (loss) | $ | 82.8 | $ | 71.9 | $ | (335.6) | $ | 168.0 |

Gains or losses associated with (i) changes in the fair values of derivative instruments and (ii) movements in foreign currency exchange rates are subject to a high degree of volatility and, as such, any gains from these sources do not represent a reliable source of income. In the absence of significant gains in the future from these sources or from other non-operating items, our ability to achieve earnings is largely dependent on our ability to increase our aggregate Adjusted OIBDA to a level that more than offsets the aggregate amount of our (i) share-based compensation expense, (ii) depreciation and amortization, (iii) impairment, restructuring and other operating items, (iv) interest expense, (v) other non-operating expenses and (vi) income tax expenses.
Due largely to the fact that we seek to maintain our debt at levels that provide for attractive equity returns, as discussed under Material Changes in Financial Condition—Capitalization below, we expect that we will continue to report significant levels of interest expense for the foreseeable future.
Net earnings or loss attributable to noncontrolling interests
We reported net loss attributable to noncontrolling interests of $1 million and $25 million during three and nine months ended September 30, 2022, respectively, and $4 million and $6 million during the three and nine months ended September 30, 2021, respectively.
Material Changes in Financial Condition
Sources and Uses of Cash
Subsequent to the closing of the Chile JV as further described in note 8 to our condensed consolidated financial statements, we have three primary “borrowing groups,” which include the respective restricted parent and subsidiary entities of C&W, Liberty Puerto Rico and Liberty Costa Rica. Our borrowing groups, which typically generate cash from operating activities, held a significant portion of our consolidated cash and cash equivalents at September 30, 2022. Our ability to access the liquidity of these and other subsidiaries may be limited by tax and legal considerations, the presence of noncontrolling interests, foreign currency exchange restrictions with respect to certain C&W subsidiaries and other factors. For details of the restrictions on our subsidiaries to make payments to us through dividends, loans or other distributions see note 9 to our condensed consolidated financial statements.
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Cash and cash equivalents
The details of the U.S. dollar equivalent balances of our cash and cash equivalents at September 30, 2022 are set forth in the following table (in millions):
| Cash and cash equivalents held by: |
| Liberty Latin America and unrestricted subsidiaries: |
| Liberty Latin America (a) | $ | 17.6 |
| Unrestricted subsidiaries (b) | 168.3 |
| Total Liberty Latin America and unrestricted subsidiaries | 185.9 |
| Borrowing groups (c): |
| C&W | 458.3 |
| Liberty Puerto Rico | 118.2 |
| Liberty Costa Rica | 6.8 |
| Total borrowing groups | 583.3 |
| Total cash and cash equivalents | $ | 769.2 |

(a)Represents the amount held by Liberty Latin America on a standalone basis.
(b)Represents the aggregate amount held by subsidiaries of Liberty Latin America that are outside of our borrowing groups. All of these companies rely on funds provided by our borrowing groups to satisfy their liquidity needs.
(c)Represents the aggregate amounts held by the parent entity of the applicable borrowing group and their restricted subsidiaries.
Liquidity and capital resources of Liberty Latin America and its unrestricted subsidiaries
Our current sources of corporate liquidity include (i) cash and cash equivalents held by Liberty Latin America and, subject to certain tax and legal considerations, Liberty Latin America’s unrestricted subsidiaries, and (ii) interest and dividend income received on our and, subject to certain tax and legal considerations, our unrestricted subsidiaries’ cash and cash equivalents and investments. From time to time, Liberty Latin America and its unrestricted subsidiaries may also receive (i) proceeds in the form of distributions or loan repayments from Liberty Latin America’s borrowing groups upon (a) the completion of recapitalizations, refinancings, asset sales or similar transactions by these entities or (b) the accumulation of excess cash from operations or other means, (ii) proceeds upon the disposition of investments and other assets of Liberty Latin America and its unrestricted subsidiaries and (iii) proceeds in connection with the incurrence of debt by Liberty Latin America or its unrestricted subsidiaries or the issuance of equity securities by Liberty Latin America. No assurance can be given that any external funding would be available to Liberty Latin America or its unrestricted subsidiaries on favorable terms, or at all. As noted above, various factors may limit our ability to access the cash of our borrowing groups.
Our corporate liquidity requirements include (i) corporate general and administrative expenses and (ii) other liquidity needs that may arise from time to time. In addition, Liberty Latin America and its unrestricted subsidiaries may require cash in connection with (i) the repayment of third-party and intercompany debt, (ii) the satisfaction of contingent liabilities, (iii) acquisitions and other investment opportunities, (iv) the repurchase of debt securities, (v) tax payments or (vi) any funding requirements of our consolidated subsidiaries.
During the three months ended September 30, 2022, the aggregate amount of our share repurchases was $34 million. For additional information regarding our Share Repurchase Programs, see note 16 to our condensed consolidated financial statements and Part II—Item 2 Unregistered Sales of Equity Securities and Use of Proceeds below.
Liquidity and capital resources of borrowing groups
The cash and cash equivalents of our borrowing groups are detailed in the table above. In addition to cash and cash equivalents, the primary sources of liquidity of our borrowing groups are cash provided by operations and borrowing availability under their respective debt instruments. For the details of the borrowing availability of our borrowing groups at September 30, 2022, see note 9 to our condensed consolidated financial statements. The aforementioned sources of liquidity may be supplemented in certain cases by contributions and/or loans from Liberty Latin America and its unrestricted subsidiaries. The liquidity of our borrowing groups generally is used to fund capital expenditures, debt service requirements and
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income tax payments. From time to time, our borrowing groups may also require liquidity in connection with (i) acquisitions and other investment opportunities, (ii) loans to Liberty Latin America, (iii) capital distributions to Liberty Latin America and other equity owners or (iv) the satisfaction of contingent liabilities. No assurance can be given that any external funding would be available to our borrowing groups on favorable terms, or at all.
For additional information regarding our cash flows, see the discussion under Condensed Consolidated Statements of Cash Flows below.
Capitalization
We seek to maintain our debt at levels that provide for attractive equity returns without assuming undue risk. When it is cost effective, we generally seek to match the denomination of the borrowings of our subsidiaries with the functional currency of the operations that support the respective borrowings. As further discussed under Item 3. Quantitative and Qualitative Disclosures about Market Risk and in note 5 to our condensed consolidated financial statements, we also use derivative instruments to mitigate foreign currency and interest rate risks associated with our debt instruments.
Our ability to service or refinance our debt and to maintain compliance with the leverage covenants in the credit agreements of our borrowing groups is dependent primarily on our ability to maintain covenant EBITDA of our operating subsidiaries, as specified by our subsidiaries’ debt agreements (Covenant EBITDA), and to achieve adequate returns on our property and equipment additions and acquisitions. In addition, our ability to obtain additional debt financing is limited by incurrence-based and/or maintenance-based leverage covenants contained in the various debt instruments of our borrowing groups. For example, if the Covenant EBITDA of one of our borrowing groups were to decline, our ability to support or obtain additional debt in that borrowing group could be limited. No assurance can be given that we would have sufficient sources of liquidity, or that any external funding would be available on favorable terms, or at all, to fund any such required repayment. At September 30, 2022, each of our borrowing groups was in compliance with its debt covenants. We do not anticipate any instances of non-compliance with respect to the debt covenants of our borrowing groups that would have a material adverse impact on our liquidity during the next 12 months.
At September 30, 2022, the outstanding principal amount of our debt, together with our finance lease obligations, excluding VTR, aggregated $7,954 million, including $208 million that is classified as current in our condensed consolidated balance sheet and $6,881 million that is not due until 2027 or thereafter. At September 30, 2022, $7,549 million of our debt and finance lease obligations have been borrowed or incurred by our subsidiaries. Included in the outstanding principal amount of our debt at September 30, 2022 is $196 million of vendor financing, which we use to finance certain of our operating expenses and property and equipment additions. These obligations are generally due within one year, other than for certain licensing arrangements that generally are due over the term of the related license. For additional information concerning our debt, including our debt maturities, see note 9 to our condensed consolidated financial statements.
The weighted average interest rate in effect at September 30, 2022 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin, was 5.8%. The interest rate is based on stated rates and does 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. The weighted average impact of the derivative instruments, excluding forward-starting derivative instruments, on our borrowing costs at September 30, 2022 was as follows:
| Borrowing group | Decrease to borrowing costs |
| C&W | (0.60) | % |
| Liberty Puerto Rico | (0.13) | % |
| Liberty Costa Rica | (0.62) | % |
| Liberty Latin America borrowing groups combined | (0.42) | % |

Including the effects of derivative instruments, original issue premiums or discounts, including the discount on the Convertible Notes associated with the instrument’s conversion option, and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 5.6% at September 30, 2022.
We believe that we have sufficient resources to repay or refinance the current portion of our debt and finance lease obligations and to fund our foreseeable liquidity requirements during the next 12 months. However, as our debt maturities grow in later years, we anticipate that we will seek to refinance or otherwise extend our debt maturities. No assurance can be given
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that we will be able to complete refinancing transactions or otherwise extend our debt maturities. In this regard, it is difficult to predict how political, economic and social conditions, sovereign debt concerns or any adverse regulatory developments will impact the credit and equity markets we access and our future financial position. Our ability to access debt financing on favorable terms, or at all, could be adversely impacted by (i) the financial failure of any of our counterparties, which could (a) reduce amounts available under committed credit facilities and (b) adversely impact our ability to access cash deposited with any failed financial institution, and (ii) tightening of the credit markets. In addition, any weakness in the equity markets could make it less attractive to use our shares to satisfy contingent or other obligations, and sustained or increased competition, particularly in combination with adverse economic or regulatory developments, could have an unfavorable impact on our cash flows and liquidity.
Condensed Consolidated Statements of Cash Flows
General. Our cash flows are subject to variations due to FX.
Summary. Our condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021 are summarized as follows:
| Nine months ended September 30, |
| 2022 | 2021 | Change |
| in millions |
| Net cash provided by operating activities | $ | 491.8 | $ | 717.8 | $ | (226.0) |
| Net cash used by investing activities | (744.6) | (1,075.3) | 330.7 |
| Net cash provided by financing activities | 21.9 | 530.6 | (508.7) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3.5) | (6.7) | 3.2 |
| Net increase (decrease) in cash, cash equivalents and restricted cash | $ | (234.4) | $ | 166.4 | $ | (400.8) |

Operating Activities. The decrease in cash provided by operating activities is primarily due to timing associated with changes in working capital.
Investing Activities. The cash used by investing activities during 2022 primarily relates to (i) capital expenditures, as further discussed below, (ii) the Claro Panama Acquisition and Broadband VI, LLC Acquisition, and (iii) additional investments made in an equity method investee. The cash used by investing activities during 2021 primarily relates to (i) capital expenditures, as further discussed below, and (ii) the Liberty Telecomunicaciones Acquisition.
For additional information regarding our acquisitions, see note 4 to our condensed consolidated financial statements.
The capital expenditures that we report in our condensed consolidated statements of cash flows, which relates to cash paid for property and equipment, does not include amounts that are financed under capital-related vendor financing or finance lease arrangements. Instead, these amounts are reflected as non-cash additions to our property and equipment when the underlying assets are delivered and as repayments of debt when the principal is repaid. In this discussion, we refer to (i) our capital expenditures, as reported in our condensed consolidated statements of cash flows, and (ii) our total property and equipment additions, which include our capital expenditures on an accrual basis and amounts financed under capital-related vendor financing or finance lease arrangements.
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A reconciliation of our property and equipment additions to our capital expenditures, as reported in our condensed consolidated statements of cash flows, is set forth below:
| Nine months ended September 30, |
| 2022 | 2021 |
| in millions |
| Property and equipment additions | $ | 591.1 | $ | 599.0 |
| Assets acquired under capital-related vendor financing arrangements | (114.2) | (65.0) |
| Changes in current liabilities related to capital expenditures | 20.8 | 10.7 |
| Capital expenditures | $ | 497.7 | $ | 544.7 |

Property and equipment additions during the nine months ended September 30, 2022, were consistent with the corresponding period in 2021, as decreases in CPE-related additions and capacity were mostly offset by baseline additions. During the nine months ended September 30, 2022 and 2021, our property and equipment additions represented 16.2% and 16.9% of revenue, respectively.
Financing Activities. During the nine months ended September 30, 2022, we generated $22 million of cash from financing activities, primarily due to (i) $98 million of net cash received related to derivatives instruments and (ii) $95 million of net borrowings of debt, which include the impact of $48 million of cash used to extinguish debt at VTR. These net inflows were largely offset by $153 million associated with the repurchase of Liberty Latin America common shares.
During the nine months ended September 30, 2021, we generated $531 million of cash from financing activities, primarily due to the net effect of (i) $602 million of net borrowings of debt, (ii) $47 million related to the contribution from noncontrolling interest owner, as further described in note 16 of the condensed consolidated financial statements, (iii) $43 million related to payments of derivatives, (iv) $37 million related to payments of financing costs and debt redemption premiums, and (v) $30 million of cash used associated with the repurchase of Liberty Latin America common shares.
Off Balance Sheet Arrangements
In the ordinary course of business, we may provide (i) indemnifications to our lenders, our vendors and certain other parties and (ii) performance and/or financial guarantees to local municipalities, our customers and vendors. Historically, these arrangements have not resulted in our company making any material payments and we do not believe that they will result in material payments in the future.
Contractual Commitments
For information concerning our debt and operating lease obligations, see notes 9 and 10, respectively, to our condensed consolidated financial statements. In addition, we have commitments under (i) derivative instruments and (ii) defined benefit plans and similar agreements, pursuant to which we expect to make payments in future periods. For information regarding projected cash flows associated with our derivative instruments, see Item 3. Quantitative and Qualitative Disclosures About Market Risk—Projected Cash Flows Associated with Derivative Instruments below. For information regarding our derivative instruments, including the net cash paid or received in connection with these instruments during the nine months ended September 30, 2022 and 2021, see note 5 to our condensed consolidated financial statements.
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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information in this section should be read in conjunction with the more complete discussion that appears under Quantitative and Qualitative Disclosures About Market Risk in our 2021 Form 10-K.
We are exposed to market risk in the normal course of our business operations due to our investments in various countries and ongoing investing and financing activities. Market risk refers to the risk of loss arising from adverse changes in foreign currency exchange rates, interest rates and stock prices. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. As further described below, we have established policies, procedures and processes governing our management of market risks and the use of derivative instruments to manage our exposure to such risks.
Cash and Investments
We invest our cash in highly liquid instruments that meet high credit quality standards. We are exposed to exchange rate risk to the extent that the denominations of our cash and cash equivalent balances, revolving lines of credit and other short-term sources of liquidity do not correspond to the denominations of Liberty Latin America’s short-term liquidity requirements. In order to mitigate this risk, we actively manage the denominations of our cash balances in consideration of Liberty Latin America’s forecasted liquidity requirements.
Foreign Currency Rates
The relationship between the (i) CLP, JMD and CRC and (ii) the U.S. dollar, which is our reporting currency, is shown below, per one U.S. dollar:
| September 30,2022 | December 31, 2021 |
| Spot rates: |
| CLP | 967.43 | 852.00 |
| JMD | 152.11 | 153.96 |
| CRC | 628.50 | 642.21 |

| Three months ended September 30, | Nine months ended September 30, |
| 2022 | 2021 | 2022 | 2021 |
| Average rates: |
| CLP | 926.42 | 773.18 | 859.78 | 737.78 |
| JMD | 151.62 | 151.86 | 153.47 | 149.69 |
| CRC | 660.58 | 622.53 | 659.93 | 617.19 |

Interest Rate Risks
In general, we seek to enter into derivative instruments to protect against increases in the interest rates on our variable-rate debt. Accordingly, we have entered into various derivative transactions to reduce exposure to increases in interest rates. We use interest rate derivative contracts to exchange, at specified intervals, the difference between fixed and variable interest rates calculated by reference to an agreed-upon notional principal amount. At September 30, 2022, we paid a fixed or capped rate of interest on 96% of our total debt, which includes the impact of our interest rate derivative contracts. The final maturity dates of our various portfolios of interest rate derivative instruments match the respective maturities of the underlying variable-rate debt. In this regard, we use judgment to determine the appropriate maturity dates of our portfolios of interest rate derivative instruments, taking into account the relative costs and benefits of different maturity profiles in light of current and expected future market conditions, liquidity issues and other factors. For additional information concerning the impacts of these interest rate derivative instruments, see note 5 to our condensed consolidated financial statements.
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Sensitivity Information
Information concerning the sensitivity of the fair value of certain of our more significant derivative instruments to changes in market conditions is set forth below. The potential changes in fair value set forth below do not include any amounts associated with the remeasurement of the derivative asset or liability into the applicable functional currency. For additional information, see notes 5 and 6 to our condensed consolidated financial statements.
C&W Interest Rate Derivative Contracts
Holding all other factors constant, at September 30, 2022, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the C&W interest rate derivative contracts by approximately $98 million ($99 million).
Liberty Puerto Rico Interest Rate Derivative Contracts
Holding all other factors constant, at September 30, 2022, an instantaneous increase (decrease) in the relevant base rate of 100 basis points (1.0%) would have increased (decreased) the aggregate fair value of the Liberty Puerto Rico interest rate derivative contracts by approximately $28 million ($29 million).
Projected Cash Flows Associated with Derivative Instruments
The following table provides information regarding the projected cash flows associated with our derivative instruments. The U.S. dollar equivalents presented below are based on interest rates and exchange rates that were in effect as of September 30, 2022. These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods. For additional information regarding our derivative instruments, including our counterparty credit risk, see note 5 to our condensed consolidated financial statements.
| Payments (receipts) due during: | Total |
| Remainder of 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter |
| in millions |
| Projected derivative cash payments (receipts), net (a): |
| Interest-related (b) | $ | (4.5) | $ | 2.0 | $ | (20.1) | $ | (19.4) | $ | (19.4) | $ | (19.4) | $ | (17.7) | $ | (98.5) |
| Other (c) | 16.1 | — | — | — | — | — | — | 16.1 |
| Total | $ | 11.6 | $ | 2.0 | $ | (20.1) | $ | (19.4) | $ | (19.4) | $ | (19.4) | $ | (17.7) | $ | (82.4) |

(a)Amounts do not include projected cash flows related to derivatives of the Chile JV Entities, which comprise (i) total interest-related payments of $23 million, (ii) total principal-related receipts of $168 million and (iii) total foreign currency-related receipts of $15 million. For information regarding the formation of the Chile JV, see note 8 to our condensed consolidated financial statements.
(b)Includes the interest-related cash flows of our interest rate derivative contracts.
(c)Includes amounts related to our foreign currency forward contracts.
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Item 4. CONTROLS AND PROCEDURES
Evaluation of disclosure controls and procedures
We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Executives, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, the Executives recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply judgment in evaluating the cost-benefit relationship of possible controls and objectives.
As disclosed in our Annual Report on Form 10-K for our fiscal year ended December 31, 2021, we identified material weaknesses in our internal control over financial reporting. The material weaknesses will not be considered remediated until the applicable new or enhanced controls operate for a sufficient period of time and management has concluded, through testing, that these controls are designed and operating effectively. Our management, with the participation of the Executives, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2022. As remediation is not completed, the Executives concluded that our disclosure controls and procedures continue to be ineffective as of September 30, 2022.
Management’s Remediation Plans
Management, with oversight from the Audit Committee of the Board of Directors, is continuing to implement the remediation plans as disclosed in our Annual Report on Form 10-K for our fiscal year ended December 31, 2021. We believe that these actions and the improvements we expect to achieve, when fully implemented, will strengthen our internal control over financial reporting and remediate the material weaknesses identified.
Changes in Internal Control over Financial Reporting
Except as listed below, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
During the quarter, we made the following changes in our internal control over financial reporting:
•additional manual procedures and controls were designed and implemented to enhance our internal control process through a combination of preventative and detective controls;
•key information technology resources were hired to design, implement, perform, and monitor the execution of general information technology controls; and,
•trainings were held to reinforce control concepts and responsibilities for control performers.
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PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
From time to time, our subsidiaries and affiliates have become involved in litigation relating to claims arising out of their operations in the normal course of business. For additional information, see note 17 to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q.
Item 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(c) Issuer Purchases of Equity Securities
On February 22, 2022, our Directors approved the 2022 Share Repurchase Program. This program authorizes us to repurchase from time to time up to an additional $200 million of our Class A common shares and/or Class C common shares through December 2024 in open market purchases at prevailing market prices, in privately negotiated transactions, in block trades, derivative transactions and/or through other legally permissible means. The 2022 Share Repurchase Program does not obligate us to repurchase any of our Class A or C common shares.
The following table sets forth information concerning our company’s purchase of its own equity securities during the three months ended September 30, 2022:
| Period | Total number of shares purchased | Average pricepaid per share (a) | Total number ofshares purchased as part of publiclyannounced plansor programs | Approximatedollar value ofshares that mayyet be purchasedunder the plans or programs |
| July 1, 2022 through July 31, 2022: |
| Class A | 138,700 | $ | 7.22 | 138,700 | (b) |
| Class C | 588,100 | $ | 7.23 | 588,100 |
| August 1, 2022 through August 31, 2022: |
| Class A | — | $ | — | — | (b) |
| Class C | 2,307,900 | $ | 7.49 | 2,307,900 |
| September 1, 2022 through September 30, 2022: |
| Class A | 144,500 | $ | 6.71 | 144,500 | (b) |
| Class C | 1,544,600 | $ | 6.50 | 1,544,600 |
| Total – July 1, 2022 through September 30, 2022: |
| Class A | 283,200 | $ | 6.96 | 283,200 | (b) |
| Class C | 4,440,600 | $ | 7.11 | 4,440,600 |

(a)Average price paid per share includes direct acquisition costs.
(b)At September 30, 2022, the remaining amount authorized for repurchases under the 2022 Share Repurchase Program was $74 million.
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Item 6. EXHIBITS
Listed below are the exhibits filed as part of this Quarterly Report on Form 10-Q (according to the number assigned to them in Item 601 of Regulation S-K):
| 10.1 | Amended and Restated Employment Agreement, made and effective as of July 28, 2022, by and among Liberty Latin America Ltd., LiLAC Communications Inc. and Balan Nair.*† |
| 10.2 | 2022 Unrestricted Share Award and Performance Share Unit Agreement, made as of July 28, 2022, by and between Liberty Latin America Ltd. and Balan Nair.* |
| 31.1 | Certification of President and Chief Executive Officer.* |
| 31.2 | Certification of Senior Vice President and Chief Financial Officer (Principal Financial Officer).* |
| 32 | Section 1350 Certifications.** |
| 101.SCH | XBRL Inline Taxonomy Extension Schema Document.* |
| 101.CAL | XBRL Inline Taxonomy Extension Calculation Linkbase Document.* |
| 101.DEF | XBRL Inline Taxonomy Extension Definition Linkbase.* |
| 101.LAB | XBRL Inline Taxonomy Extension Label Linkbase Document.* |
| 101.PRE | XBRL Inline Taxonomy Extension Presentation Linkbase Document.* |
| 104 | Cover Page Interactive Data File.* (formatted as Inline XBRL and contained in Exhibit 101) |

* Filed herewith
** Furnished herewith
† Exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. Liberty Latin America hereby agrees to furnish supplementally a copy of such exhibits to the SEC upon request.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| LIBERTY LATIN AMERICA LTD. |
| Dated: | November 8, 2022 | /s/ BALAN NAIR |
| Balan NairPresident and Chief Executive Officer |
| Dated: | November 8, 2022 | /s/ CHRISTOPHER NOYES |
| Christopher NoyesSenior Vice President and Chief Financial Officer |

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Question: What is the total change in cash flow from operating, investing and financing activities in the nine months ended September 30, 2022 compared to the same period in 2021 (in millions)?

Python solution:
def solution():
    #Define variables name and value
    operating_2022 = 491.8 
    operating_2021 = 717.8
    investing_2022 = -744.6
    investing_2021 = -1075.3
    financing_2022 = 21.9
    financing_2021 = 530.6

    #Do math calculation to get the answer
    change_operating = operating_2022 - operating_2021
    change_investing = investing_2022 - investing_2021
    change_financing = financing_2022 - financing_2021
    total_change = change_operating + change_investing + change_financing 
    return total_change


Answer: -404