Company: LILA
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001712184-25-000094
Chunk: 22

Company: Liberty Latin America Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 2
Chunk 22
---
Depreciation and amortization

Our depreciation and amortization expense decreased $19 million or 8% during the three months ended March 31, 2025, as compared to the corresponding period in 2024. The decrease is primarily due to customer relationship assets becoming fully amortized in C&W Panama.

Impairment, restructuring and other operating items, net 

The details of our impairment, restructuring and other operating items, net, are as follows:

 Three months ended March 31, 20252024 in millionsImpairment charges$1.5 $1.9 Restructuring charges (a)9.2 3.5 Other operating items, net5.0 1.2 Total$15.7 $6.6 

(a)The 2025 amount primarily includes employee severance and termination costs related to reorganization activities at (i) C&W Panama and (ii) Liberty Puerto Rico.

Interest expense

Our interest expense increased $2 million during the three months ended March 31, 2025, as compared to the corresponding period in 2024. The increase is primarily attributable to (i) an increase in our average debt balance and  weighted-average interest rate and (ii) the accretion of the net present value discount associated with our deferred payment obligation for the LPR Acquisition. 

For additional information regarding our outstanding indebtedness, see note 10 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 6 to our condensed consolidated financial statements, we use derivative instruments to manage our interest rate risks.

50

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 (losses) on derivative instruments, net, are as follows:

 Three months ended March 31, 20252024 in millionsInterest rate derivative contracts (a)$(51.1)$61.2 Foreign currency forward contracts and other (b