Liberty Global : UPC Holding Group Condensed Combined Financial Statements – March 31, 2019

The UPC Holding Group

Condensed Combined Financial Statements

March 31, 2019

The UPC Holding Group
TABLE OF CONTENTS
	Page
	Number
Condensed Combined Balance Sheets as of March 31, 2019 and December 31, 2018 (unaudited) ...........................	1
Condensed Combined Statements of Operations for the Three Months Ended March 31, 2019 and 2018
(unaudited)................................................................................................................................................................	3
Condensed Combined Statements of Comprehensive Earnings (Loss) for the Three Months Ended March 31,
2019 and 2018 (unaudited) .......................................................................................................................................	4
Condensed Combined Statements of Equity (Deficit) for the Three Months Ended March 31, 2019 and 2018
(unaudited)................................................................................................................................................................	5
Condensed Combined Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018
(unaudited)................................................................................................................................................................	7
Notes to Condensed Combined Financial Statements (unaudited) ..............................................................................	9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS..........................................................................................................................................................	36

The UPC Holding Group

CONDENSED COMBINED BALANCE SHEETS

(unaudited)

		March 31,		December 31,
		2019			2018
		in millions
ASSETS
Current assets:
Cash and cash equivalents........................................................................................................	€	23.4		€	12.9
Trade receivables, net...............................................................................................................		142.0			221.7
Related-party receivables (note 11)..........................................................................................		133.6			162.8
Derivative instruments (note 5)................................................................................................		116.7			108.0
Prepaid expenses ......................................................................................................................		48.2			31.8
Current assets of discontinued operations (note 4) ..................................................................		58.0			55.7
Other current assets (note 3).....................................................................................................		41.1			47.5
Total current assets ..............................................................................................................		563.0			640.4
Property and equipment, net (note 7) .........................................................................................		1,539.3			1,534.8
Goodwill (note 7)........................................................................................................................		3,045.8			3,028.8
Derivative instruments (note 5) ..................................................................................................		426.1			362.9
Long-term assets of discontinued operations (note 4)................................................................		1,513.9			1,430.8
Other assets, net (notes 3, 7, 9 and 11) .......................................................................................		448.5			333.9
Total assets...........................................................................................................................	€	7,536.6		€	7,331.6

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

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The UPC Holding Group

CONDENSED COMBINED BALANCE SHEETS - (Continued)

(unaudited)

		March 31,		December 31,
		2019			2018
		in millions
LIABILITIES AND COMBINED EQUITY
Current liabilities:
Accounts payable (note 11)......................................................................................................	€	276.2		€	195.7
Deferred revenue (note 3) ........................................................................................................		177.6			214.5
Derivative instruments (note 5)................................................................................................		173.8			130.1
Current portion of debt and finance lease obligations (notes 8 and 9).....................................		546.7			515.8
Current liabilities of discontinued operations (note 4).............................................................		238.3			226.9
Other accrued and current liabilities (notes 9 and 11)..............................................................		483.3			608.6
Total current liabilities....................................................................................................		1,895.9			1,891.6
Long-term debt and finance lease obligations (notes 8 and 9) ...................................................		4,765.3			4,705.4
Derivative instruments (note 5) ..................................................................................................		344.9			373.1
Long-term liabilities of discontinued operations (note 4) ..........................................................		92.1			51.5
Other long-term liabilities (notes 3, 9 and 11)............................................................................		159.7			61.2
Total liabilities ................................................................................................................		7,257.9			7,082.8
Commitments and contingencies (notes 5, 8, 10 and 12)
Combined equity:
Parent entities:
Distributions and accumulated losses in excess of contributions........................................		(542.7)			(553.3)
Accumulated other comprehensive earnings, net of taxes ..................................................		801.8			783.5
Total combined equity attributable to parent entities .....................................................		259.1			230.2
Noncontrolling interests ...........................................................................................................		19.6			18.6
Total combined equity ....................................................................................................		278.7			248.8
Total liabilities and combined equity.......................................................................	€	7,536.6		€	7,331.6

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

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The UPC Holding Group

CONDENSED COMBINED STATEMENTS OF OPERATIONS

(unaudited)

		Three months ended
		March 31,
		2019			2018
		in millions
Revenue (notes 3, 11 and 13)..................................................................................................................	€	383.2		€	386.0
Operating costs and expenses (exclusive of depreciation and amortization, shown separately below):
Programming and other direct costs of services (note 11) ..................................................................		83.7			81.5
Other operating (note 11) ....................................................................................................................		49.3			50.3
Selling, general and administrative (SG&A) (note 11).......................................................................		62.1			54.7
Related-party fees and allocations, net (note 11).................................................................................		48.3			47.2
Depreciation and amortization ............................................................................................................		84.5			85.3
Impairment, restructuring and other operating items, net ...................................................................		1.0			2.1
		328.9			321.1
Operating income.............................................................................................................................		54.3			64.9
Non-operating income (expense):
Interest expense:
Third-party .........................................................................................................................................		(63.7)			(65.8)
Related-party (note 11).......................................................................................................................		-			(168.4)
Realized and unrealized gains (losses) on derivative instruments, net (note 5) ...................................		47.8			(41.0)
Foreign currency transaction gains (losses), net...................................................................................		(65.3)			55.6
Other income, net (note 11) ..................................................................................................................		3.7			2.6
		(77.5)			(217.0)
Loss from continuing operations before income taxes....................................................................		(23.2)			(152.1)
Income tax expense (note 10) .................................................................................................................		(13.0)			(13.3)
Loss from continuing operations.....................................................................................................		(36.2)			(165.4)
Earnings from discontinued operations, net of taxes (note 4).................................................................		35.1			41.8
Net loss............................................................................................................................................		(1.1)			(123.6)
Net earnings attributable to noncontrolling interests ..............................................................................		(0.9)			(2.4)
Net loss attributable to parent entities............................................................................................	€	(2.0)		€	(126.0)

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

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