LBTYA » Topics » 2007 Dispositions

These excerpts taken from the LBTYA 10-K filed Feb 23, 2009.
2007 Dispositions
 
SC Media — On July 3, 2007, pursuant to a share-for-share exchange agreement with Sumitomo, we exchanged all of our shares in SC Media for 45,652,043 shares of Sumitomo common stock with a transaction date market value of ¥104.5 billion ($854.7 million at the transaction date). As a result of this exchange transaction, we recognized a pre-tax gain of $489.3 million, representing the excess of the market value of the Sumitomo shares received over the carrying value of our investment in SC Media, after deducting a $19.4 million foreign currency translation loss that was reclassified from our accumulated other comprehensive earnings to our consolidated statement of operations in connection with this exchange transaction. During the second quarter of 2007, we


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LIBERTY GLOBAL, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2008, 2007 and 2006 — (Continued)
 
executed a zero cost collar transaction with respect to the Sumitomo shares. See note 7. During the fourth quarter of 2007, we recorded a loss due to an other-than-temporary decline in the fair value of our investment in Sumitomo common stock. See note 6.
 
Melita Cable Plc (Melita) — On July 26, 2007, an indirect wholly-owned subsidiary of Chellomedia sold its 50% interest in Melita to an unrelated third party for cash consideration of €73.6 million ($101.1 million at the transaction date). We recognized a gain of $62.2 million in connection with this transaction.
 
2007
Dispositions



 



SC Media — On July 3, 2007, pursuant to a
share-for-share exchange agreement with Sumitomo, we exchanged
all of our shares in SC Media for 45,652,043 shares of
Sumitomo common stock with a transaction date market value of
¥104.5 billion ($854.7 million at the transaction
date). As a result of this exchange transaction, we recognized a
pre-tax gain of $489.3 million, representing the excess of
the market value of the Sumitomo shares received over the
carrying value of our investment in SC Media, after deducting a
$19.4 million foreign currency translation loss that was
reclassified from our accumulated other comprehensive earnings
to our consolidated statement of operations in connection with
this exchange transaction. During the second quarter of 2007, we





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LIBERTY
GLOBAL, INC.




 




NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS






December 31,
2008, 2007 and 2006 — (Continued)


 



executed a zero cost collar transaction with respect to the
Sumitomo shares. See note 7. During the fourth quarter of
2007, we recorded a loss due to an other-than-temporary decline
in the fair value of our investment in Sumitomo common stock.
See note 6.


 



Melita Cable Plc (Melita) — On July 26,
2007, an indirect wholly-owned subsidiary of Chellomedia sold
its 50% interest in Melita to an unrelated third party for cash
consideration of €73.6 million ($101.1 million at
the transaction date). We recognized a gain of
$62.2 million in connection with this transaction.


 




2007
Dispositions



 



SC Media — On July 3, 2007, pursuant to a
share-for-share exchange agreement with Sumitomo, we exchanged
all of our shares in SC Media for 45,652,043 shares of
Sumitomo common stock with a transaction date market value of
¥104.5 billion ($854.7 million at the transaction
date). As a result of this exchange transaction, we recognized a
pre-tax gain of $489.3 million, representing the excess of
the market value of the Sumitomo shares received over the
carrying value of our investment in SC Media, after deducting a
$19.4 million foreign currency translation loss that was
reclassified from our accumulated other comprehensive earnings
to our consolidated statement of operations in connection with
this exchange transaction. During the second quarter of 2007, we





II-95





Table of Contents





 




LIBERTY
GLOBAL, INC.




 




NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS






December 31,
2008, 2007 and 2006 — (Continued)


 



executed a zero cost collar transaction with respect to the
Sumitomo shares. See note 7. During the fourth quarter of
2007, we recorded a loss due to an other-than-temporary decline
in the fair value of our investment in Sumitomo common stock.
See note 6.


 



Melita Cable Plc (Melita) — On July 26,
2007, an indirect wholly-owned subsidiary of Chellomedia sold
its 50% interest in Melita to an unrelated third party for cash
consideration of €73.6 million ($101.1 million at
the transaction date). We recognized a gain of
$62.2 million in connection with this transaction.


 




These excerpts taken from the LBTYA 10-K filed Feb 26, 2008.
2006 Dispositions
 
UPC Belgium NV/SA (UPC Belgium) — On December 31, 2006, we sold UPC Belgium to Telenet for cash consideration of €184.5 million ($243.3 million at the transaction date), after deducting cash received to settle net cash and working capital adjustments of €20.9 million ($27.6 million at the transaction date). The terms of this transaction were voted on and approved by Telenet’s board of directors, with the Telenet board members affiliated with LGI abstaining from the vote. In connection with this transaction, we recognized a pre-tax gain of $104.7 million after eliminating the percentage of the gain equal to our ownership interest in Telenet at December 31, 2006. The pre-tax gain recognized includes realized foreign currency transaction gains of $7.3 million. Due to our continuing ownership interest in Telenet, we have not accounted for UPC Belgium as a discontinued operation.
 
Sky Brasil — On August 23, 2006, following receipt of the necessary regulatory approvals, we completed the sale of our investment in a DTH satellite provider that operates in Brazil (Sky Brasil). Upon the completion of this transaction, the contingent obligation to refund the $60.0 million of cash consideration that we received for our Sky Brasil interest in October 2004 was eliminated. We recognized a $16.9 million pre-tax gain in connection with this transaction.
 
Primacom — On August 10, 2006, we sold our equity method investment in PrimaCom AG (PrimaCom). We recognized a $35.8 million pre-tax gain in connection with this transaction.
 
Sky Mexico — On February 16, 2006, we received $88.0 million in cash upon the sale of our cost investment in a DTH satellite provider that operates in Mexico (Sky Mexico). We recognized a $45.3 million pre-tax gain in connection with this transaction.


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LIBERTY GLOBAL, INC.
(See note 1)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2007, 2006 and 2005 — (Continued)
 
2006
Dispositions



 



UPC Belgium NV/SA (UPC Belgium) — On
December 31, 2006, we sold UPC Belgium to Telenet for cash
consideration of €184.5 million ($243.3 million
at the transaction date), after deducting cash received to
settle net cash and working capital adjustments of
€20.9 million ($27.6 million at the transaction
date). The terms of this transaction were voted on and approved
by Telenet’s board of directors, with the Telenet board
members affiliated with LGI abstaining from the vote. In
connection with this transaction, we recognized a pre-tax gain
of $104.7 million after eliminating the percentage of the
gain equal to our ownership interest in Telenet at
December 31, 2006. The pre-tax gain recognized includes
realized foreign currency transaction gains of
$7.3 million. Due to our continuing ownership interest in
Telenet, we have not accounted for UPC Belgium as a discontinued
operation.


 



Sky Brasil — On August 23, 2006, following
receipt of the necessary regulatory approvals, we completed the
sale of our investment in a DTH satellite provider that operates
in Brazil (Sky Brasil). Upon the completion of this transaction,
the contingent obligation to refund the $60.0 million of
cash consideration that we received for our Sky Brasil interest
in October 2004 was eliminated. We recognized a
$16.9 million pre-tax gain in connection with this
transaction.


 



Primacom — On August 10, 2006, we sold our
equity method investment in PrimaCom AG (PrimaCom). We
recognized a $35.8 million pre-tax gain in connection with
this transaction.


 



Sky Mexico — On February 16, 2006, we
received $88.0 million in cash upon the sale of our cost
investment in a DTH satellite provider that operates in Mexico
(Sky Mexico). We recognized a $45.3 million pre-tax gain in
connection with this transaction.





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LIBERTY
GLOBAL, INC.

(See note 1)



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2007, 2006 and
2005 — (Continued)


 




This excerpt taken from the LBTYA 10-Q filed Nov 8, 2007.
2007 Dispositions
 
SC Media — On July 3, 2007, pursuant to a share-for-share exchange agreement with Sumitomo, we exchanged all of our shares in SC Media for 45,652,043 shares of Sumitomo common stock with a transaction date market value of ¥104.5 billion ($854.7 million at the transaction date). As a result of this exchange transaction, we recognized a pre-tax gain of $489.3 million, representing the excess of the market value of the Sumitomo shares received over the carrying value of our investment in SC Media, after deducting a $19.4 million foreign currency translation loss that was reclassified from our accumulated other comprehensive earnings to our condensed consolidated statement of operations in connection with this exchange transaction. During the second quarter of 2007, we executed a zero cost collar transaction with respect to the Sumitomo shares. See note 6.
 
Our investment in Sumitomo common stock is classified as available-for-sale and carried at fair value, with changes in fair value reflected as unrealized holding gains and losses, net of income taxes, in our condensed consolidated statement of comprehensive earnings (loss). We include our investment in Sumitomo stock in other investments in our condensed consolidated balance sheet.
 
Melita Cable Plc (Melita) — On July 26, 2007, an indirect wholly owned subsidiary of Chellomedia sold its 50% interest in Melita to an unrelated third party for cash consideration of €73.6 million ($101.1 million at the


16


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LIBERTY GLOBAL, INC.
(See note 1)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
September 30, 2007
(unaudited)
 
transaction date). We recognized a gain of €45.2 million ($62.2 million at the transaction date) in connection with this transaction.
 
This excerpt taken from the LBTYA 10-K filed Jun 18, 2007.
Dispositions
 
During 2006 and 2005, we sold a number of our equity method investments. For additional information, see note 6.
 
This excerpt taken from the LBTYA 10-K filed Mar 1, 2007.
Dispositions
 
During 2006 and 2005, we sold a number of our equity method investments. For additional information, see note 6.
 

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