Glossary
10-Q or 10-K: As used herein, the terms 10-Q and 10-K refer to our most recent quarterly or annual report as filed with the Securities and
Exchange Commission on Form 10-Q or Form 10-K, as applicable.
Adjusted EBITDA, Adjusted EBITDA less P&E Additions and Property and Equipment Additions (P&E Additions)
:
• Adjusted EBITDA: Adjusted EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating
performance and is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments
and (ii) evaluate the effectiveness of our management for purposes of annual and other incentive compensation plans. As we use the
term, Adjusted EBITDA is defined as earnings (loss) from continuing operations before net income tax benefit (expense), other non-
operating income or expenses, net gains (losses) on debt extinguishment, net foreign currency transaction gains (losses), net gains
(losses) on derivative instruments, net interest expense, depreciation and amortization, share-based compensation, related-party fees
and allocations, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items.
Other operating items include (a) gains and losses on the disposition of long-lived assets, (b) third-party costs directly associated with
successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (c) other
acquisition-related items, such as gains and losses on the settlement of contingent consideration. Our internal decision makers believe
Adjusted EBITDA 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 (1) readily view operating trends, (2) perform analytical comparisons and
benchmarking between segments and (3) identify strategies to improve operating performance in the different countries in which we
operate. We believe our consolidated Adjusted EBITDA measure, which is a non-GAAP 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
measure may not be directly comparable to similar measures used by other public companies. Consolidated Adjusted EBITDA should be
viewed as a measure of operating performance that is a supplement to, and not a substitute for U.S. GAAP measures of income included
in our condensed consolidated statements of operations.
• Adjusted EBITDA less P&E Additions: We define Adjusted EBITDA less P&E Additions, which is a non-GAAP measure, as Adjusted
EBITDA less property and equipment additions on an accrual basis. Adjusted EBITDA less P&E Additions is a meaningful measure
because it provides (i) a transparent view of Adjusted EBITDA that remains after our capital spend, which we believe is important to take
into account when evaluating our overall performance, and (ii) a comparable view of our performance relative to other
telecommunications companies. Our Adjusted EBITDA less P&E Additions measure may differ from how other companies define and
apply their definition of similar measures. Adjusted EBITDA less P&E Additions should be viewed as a measure of operating performance
that is a supplement to, and not a substitute for, U.S. GAAP measures of income included in our condensed consolidated statements of
operations.
• P&E Additions: Includes capital expenditures on an accrual basis, amounts financed under vendor financing or finance lease
arrangements and other non-cash additions.
ARPU: Average Revenue Per Unit is the average monthly subscription revenue per average fixed customer relationship or mobile subscriber, as
applicable. ARPU per average fixed-line customer relationship is calculated by dividing the average monthly subscription revenue from residential
fixed and SOHO services by the average number of fixed-line customer relationships for the period. ARPU per average mobile subscriber is
calculated by dividing mobile subscription revenue for the indicated period by the average number of mobile subscribers for the period. Unless
otherwise indicated, ARPU per fixed customer relationship or mobile subscriber is not adjusted for currency impacts. ARPU per RGU refers to
average monthly revenue per average RGU, which is calculated by dividing the average monthly subscription revenue from residential and
SOHO services for the indicated period, by the average number of the applicable RGUs for the period. Unless otherwise noted, ARPU in this
release is considered to be ARPU per average fixed customer relationship or mobile subscriber, as applicable. Fixed-line customer relationships,
mobile subscribers and RGUs of entities acquired during the period are normalized. In addition, for purposes of calculating the percentage
change in ARPU on a rebased basis, which is a non-GAAP measure, we adjust the prior-year subscription revenue, fixed-line customer
relationships, mobile subscribers and RGUs, as applicable, to reflect acquisitions, dispositions and FX on a comparable basis with the current
year, consistent with how we calculate our rebased growth for revenue and Adjusted EBITDA, as further described in the body of this release.
ARPU per Mobile Subscriber: Our ARPU per mobile subscriber calculation that excludes interconnect revenue refers to the average monthly
mobile subscription revenue per average mobile subscriber and is calculated by dividing the average monthly mobile subscription revenue
(excluding handset sales and late fees) for the indicated period, by the average of the opening and closing balances of mobile subscribers in
service for the period. Our ARPU per mobile subscriber calculation that includes interconnect revenue increases the numerator in the above-
described calculation by the amount of mobile interconnect revenue during the period.
Blended fully-swapped debt borrowing cost: The weighted average interest rate on our aggregate variable- and fixed-rate indebtedness
(excluding finance leases and including vendor financing obligations), including the effects of derivative instruments, original issue premiums or
discounts and commitment fees, but excluding the impact of financing costs. The weighted average interest rate calculation includes principal
amounts outstanding associated with all of our secured and unsecured borrowings.
B2B: Business-to-Business.
Customer Churn: The rate at which customers relinquish their subscriptions. The annual rolling average basis is calculated by dividing the
number of disconnects during the preceding 12 months by the average number of customer relationships. For the purpose of computing churn, a
disconnect is deemed to have occurred if the customer no longer receives any level of service from us and is required to return our equipment. A
partial product downgrade, typically used to encourage customers to pay an outstanding bill and avoid complete service disconnection, is not
considered to be disconnected for purposes of our churn calculations. Customers who move within our footprint and upgrades and downgrades
between services are also excluded from the disconnect figures used in the churn calculation.
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