Liberty Global Ltd.LBTYA
Liberty Global Ltd. Income Taxes Disclosure
Income Taxes
Liberty Global is a Bermuda exempted company limited by shares and is not considered to be a tax resident in any other jurisdiction or country. Our non-Bermuda subsidiaries are subject to tax in their respective jurisdictions. Our subsidiaries file income tax returns in the U.S., the U.K. and a number of other European jurisdictions. The income taxes of Liberty Global and our subsidiaries are presented on a separate return basis for each tax-paying entity or group.
The components of our earnings (loss) from continuing operations before income taxes are as follows:
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| in millions | |||||||||||||||||
| Domestic (a) | $ | (14.5) | $ | 1,936.6 | $ | (2,899.5) | |||||||||||
| Foreign: | |||||||||||||||||
U.K. | (6,842.3) | (a) | (a) | ||||||||||||||
| Netherlands | (277.0) | (190.9) | (833.7) | ||||||||||||||
| Luxembourg | (62.9) | (54.0) | (195.6) | ||||||||||||||
| Belgium | 57.1 | 131.3 | 653.9 | ||||||||||||||
| Ireland | (22.9) | (0.4) | (16.6) | ||||||||||||||
U.S. | (1.9) | (16.6) | (4.7) | ||||||||||||||
| Bermuda | (a) | 156.8 | (0.9) | ||||||||||||||
| Intercompany activity with discontinued operations | — | (117.6) | (139.6) | ||||||||||||||
| Other | (8.1) | (6.9) | (9.3) | ||||||||||||||
| Total foreign | (7,158.0) | (98.3) | (546.5) | ||||||||||||||
| Earnings (loss) from continuing operations before income taxes | $ | (7,172.5) | $ | 1,838.3 | $ | (3,446.0) | |||||||||||
_______________
(a) For 2025, our domestic jurisdiction is Bermuda and for 2024 and 2023, our domestic jurisdiction is the U.K.
Our income tax benefit (expense) consists of:
| Current | Deferred | Total | |||||||||||||||
| in millions | |||||||||||||||||
| Year ended December 31, 2025: | |||||||||||||||||
| Domestic (a) | $ | — | $ | — | $ | — | |||||||||||
| Foreign: | |||||||||||||||||
| Luxembourg | 0.1 | 84.2 | 84.3 | ||||||||||||||
| Belgium | (102.0) | 31.3 | (70.7) | ||||||||||||||
U.K. | (0.3) | 31.0 | 30.7 | ||||||||||||||
U.S. (b) | 40.9 | (11.2) | 29.7 | ||||||||||||||
| Netherlands | 16.1 | 1.6 | 17.7 | ||||||||||||||
| Ireland | — | (17.7) | (17.7) | ||||||||||||||
| Other | (0.7) | 2.5 | 1.8 | ||||||||||||||
| Total foreign | (45.9) | 121.7 | 75.8 | ||||||||||||||
Total income tax benefit | $ | (45.9) | $ | 121.7 | $ | 75.8 | |||||||||||
| Year ended December 31, 2024: | |||||||||||||||||
Domestic (a) | $ | — | $ | 8.0 | $ | 8.0 | |||||||||||
| Foreign: | |||||||||||||||||
U.S. (b) | 72.3 | 5.8 | 78.1 | ||||||||||||||
| Belgium | (92.8) | 25.5 | (67.3) | ||||||||||||||
| Netherlands | (2.0) | 7.1 | 5.1 | ||||||||||||||
| Ireland | 1.4 | 3.6 | 5.0 | ||||||||||||||
| Luxembourg | (0.8) | 2.9 | 2.1 | ||||||||||||||
| Other | (0.4) | 0.2 | (0.2) | ||||||||||||||
| Total foreign | (22.3) | 45.1 | 22.8 | ||||||||||||||
Total income tax benefit | $ | (22.3) | $ | 53.1 | $ | 30.8 | |||||||||||
| Year ended December 31, 2023: | |||||||||||||||||
Domestic (a) | $ | (0.1) | $ | 0.5 | $ | 0.4 | |||||||||||
| Foreign: | |||||||||||||||||
| Belgium | (100.9) | (64.9) | (165.8) | ||||||||||||||
U.S. (b) | (68.0) | (28.4) | (96.4) | ||||||||||||||
| Luxembourg | — | 44.3 | 44.3 | ||||||||||||||
| Ireland | 3.6 | 2.5 | 6.1 | ||||||||||||||
| Netherlands | (1.9) | 0.2 | (1.7) | ||||||||||||||
| Total foreign | (167.2) | (46.3) | (213.5) | ||||||||||||||
Total income tax expense | $ | (167.3) | $ | (45.8) | $ | (213.1) | |||||||||||
_______________
(a) For 2025, our domestic jurisdiction is Bermuda and for 2024 and 2023, our domestic jurisdiction is the U.K.
(b) Includes federal and state income taxes. Our U.S. state income taxes were not material during any of the years presented.
Income tax benefit (expense) attributable to our earnings (loss) from continuing operations before income taxes differs from the amounts computed using the applicable income tax rates as a result of the following factors:
| Year ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||
| in millions, except percentages | |||||||||||||||||||||||||||||||||||
Computed “expected” tax benefit (expense) (a) | $ | 1,075.9 | 15.0 | $ | (459.6) | 25.0 | $ | 809.8 | 23.5 | ||||||||||||||||||||||||||
| Domestic federal: | |||||||||||||||||||||||||||||||||||
| Change in valuation allowances | (2.2) | — | (8.4) | 0.5 | (35.6) | (1.0) | |||||||||||||||||||||||||||||
| Non-deductible and non-taxable items: | |||||||||||||||||||||||||||||||||||
| Foreign currency exchange results | (a) | 445.6 | (24.2) | (198.8) | (5.8) | ||||||||||||||||||||||||||||||
| Non-deductible or non-taxable items associated with investments in subsidiaries and affiliates (b) | (a) | 75.4 | (4.1) | (413.3) | (12.0) | ||||||||||||||||||||||||||||||
| Other non-deductible and non-taxable items | (a) | (19.9) | 1.1 | (31.1) | (0.9) | ||||||||||||||||||||||||||||||
| Other | (a) | (0.5) | (0.1) | (2.4) | (0.1) | ||||||||||||||||||||||||||||||
Foreign tax effects: | |||||||||||||||||||||||||||||||||||
U.K.: | |||||||||||||||||||||||||||||||||||
| Non-deductible or non-taxable foreign currency exchange results | (889.2) | (12.4) | (a) | (a) | |||||||||||||||||||||||||||||||
| Non-deductible or non-taxable items associated with investments in subsidiaries and affiliates (b) | (748.8) | (10.4) | (a) | (a) | |||||||||||||||||||||||||||||||
| Statutory income tax rate differential | 684.2 | 9.5 | (a) | (a) | |||||||||||||||||||||||||||||||
| Other | (41.9) | (0.6) | (a) | (a) | |||||||||||||||||||||||||||||||
Netherlands: | |||||||||||||||||||||||||||||||||||
| Non-deductible or non-taxable items associated with investments in subsidiaries and affiliates | (55.5) | (0.8) | (49.1) | 2.7 | (95.2) | (2.8) | |||||||||||||||||||||||||||||
| Non-deductible intercompany service expenses | (5.7) | (0.1) | (56.0) | 3.0 | (69.1) | (2.0) | |||||||||||||||||||||||||||||
| Change in valuation allowances | (2.9) | — | 35.6 | (1.9) | (85.9) | (2.5) | |||||||||||||||||||||||||||||
Other | 27.5 | 0.4 | 4.6 | (0.3) | 20.1 | 0.6 | |||||||||||||||||||||||||||||
Belgium: | |||||||||||||||||||||||||||||||||||
| Change in valuation allowances | (26.3) | (0.4) | (24.1) | 1.3 | (127.3) | (3.7) | |||||||||||||||||||||||||||||
| Non-deductible or non-taxable items associated with investments in subsidiaries and affiliates (c) | (0.8) | — | (0.7) | 0.1 | 130.1 | 3.8 | |||||||||||||||||||||||||||||
| Other non-deductible or non-taxable items | (37.3) | (0.5) | (25.8) | 1.4 | (12.3) | (0.4) | |||||||||||||||||||||||||||||
Other | 1.2 | — | 12.8 | (0.7) | (2.7) | (0.1) | |||||||||||||||||||||||||||||
| Luxembourg: | |||||||||||||||||||||||||||||||||||
| Change in valuation allowances | 86.0 | 1.2 | (0.4) | — | 0.1 | — | |||||||||||||||||||||||||||||
Other | (11.2) | (0.2) | (11.2) | 0.6 | (1.8) | — | |||||||||||||||||||||||||||||
Bermuda: | |||||||||||||||||||||||||||||||||||
International rate differences | (a) | 39.2 | (2.1) | (0.2) | — | ||||||||||||||||||||||||||||||
U.S. | (6.7) | (0.1) | (9.1) | 0.5 | (48.2) | (1.4) | |||||||||||||||||||||||||||||
Other foreign jurisdictions | (20.5) | (0.2) | (1.1) | 0.1 | 0.2 | — | |||||||||||||||||||||||||||||
| Worldwide changes in prior year unrecognized tax benefits | 50.0 | 0.7 | 83.5 | (4.6) | (49.5) | (1.4) | |||||||||||||||||||||||||||||
Total income tax benefit (expense) | $ | 75.8 | 1.1 | $ | 30.8 | (1.7) | $ | (213.1) | (6.2) | ||||||||||||||||||||||||||
_______________
(a)For 2025, our domestic jurisdiction is Bermuda and the statutory or “expected” rate is the Bermuda rate of 15.0%. For 2024 and 2023, our domestic jurisdiction is the U.K. and the statutory or “expected” rates are the U.K. rates of 25.0% and 23.5%, respectively. On December 27, 2023, Bermuda enacted the Corporate Income Tax Act 2023 (the CIT Act) which provides for the taxation of the Bermuda constituent entities of certain large multinational groups beginning on or after January 1, 2025. Prior to 2025, we used the U.K. statutory rate to compute our “expected” income tax benefit or expense, as management considered this rate to be more meaningful given that Bermuda did not impose an income tax in those periods. The U.K. statutory rate for 2023 represents the blended rate in effect for the year ended December 31, 2023 based on the 19.0% statutory rate that was in effect for the first quarter of 2023 and the 25.0% statutory rate in effect from April 1, 2023.
(b)The 2025 and 2023 amounts include non-deductible losses from the VMO2 JV, which include our share of the VMO2 JV’s goodwill impairments. For additional information, see note 7.
(c)The 2023 amount includes the non-taxable gain associated with the Telenet Wyre Transaction.
The components of our net deferred tax liabilities are as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| in millions | |||||||||||
| Deferred tax assets (a) | $ | 137.1 | $ | 93.1 | |||||||
| Deferred tax liabilities (a) | (370.6) | (405.0) | |||||||||
Net deferred tax liabilities | $ | (233.5) | $ | (311.9) | |||||||
_______________
(a)Our deferred tax assets and deferred tax liabilities are included within other assets, net, and other long-term liabilities, respectively, on our consolidated balance sheets.
The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities are presented below:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| in millions | |||||||||||
| Deferred tax assets: | |||||||||||
| Net operating loss and other carryforwards | $ | 1,722.8 | $ | 1,398.2 | |||||||
| Debt and interest | 246.5 | 251.5 | |||||||||
| Lease liabilities | 200.3 | 175.6 | |||||||||
| Investments | 174.6 | 336.0 | |||||||||
| Share-based compensation | 88.8 | 74.9 | |||||||||
| Property and equipment, net | 71.3 | 125.2 | |||||||||
| Other future deductible amounts | 76.5 | 68.5 | |||||||||
| Deferred tax assets | 2,580.8 | 2,429.9 | |||||||||
| Valuation allowance | (2,088.5) | (1,934.1) | |||||||||
| Deferred tax assets, net of valuation allowance | 492.3 | 495.8 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Property and equipment, net | (219.9) | (213.6) | |||||||||
| Intangible assets | (211.4) | (211.2) | |||||||||
ROU assets | (187.4) | (163.2) | |||||||||
| Debt and interest | (57.6) | (21.4) | |||||||||
| Derivative instruments | (3.7) | (161.2) | |||||||||
| Other future taxable amounts | (45.8) | (37.1) | |||||||||
| Deferred tax liabilities | (725.8) | (807.7) | |||||||||
Net deferred tax liabilities | $ | (233.5) | $ | (311.9) | |||||||
Our deferred income tax valuation allowance increased $154.4 million in 2025. This increase reflects the net effect of (i) foreign currency translation adjustments, (ii) business acquisitions, (iii) a decrease in deferred tax assets, (iv) a net tax benefit of $5.6 million and (v) other individually insignificant items.
The significant components of our tax loss carryforwards and related tax assets at December 31, 2025 are as follows:
| Tax loss carryforward | Related tax asset | Expiration date | ||||||||||||||||||
| Country | in millions | |||||||||||||||||||
| Netherlands | $ | 3,034.1 | $ | 782.8 | Indefinite | |||||||||||||||
U.K. | 1,779.2 | 444.8 | Indefinite | |||||||||||||||||
| Belgium | 1,329.4 | 332.4 | Indefinite | |||||||||||||||||
| Ireland | 469.2 | 58.7 | Indefinite | |||||||||||||||||
| Luxembourg | 312.9 | 81.7 | Various | |||||||||||||||||
| Other | 92.8 | 22.4 | Various | |||||||||||||||||
| Total | $ | 7,017.6 | $ | 1,722.8 | ||||||||||||||||
Our tax loss carryforwards within each jurisdiction combine all companies’ tax losses (both capital and ordinary losses) in that jurisdiction, however, certain tax jurisdictions limit the ability to offset taxable income of a separate company or different tax group with the tax losses associated with another separate company or group. Further, certain tax jurisdictions restrict the
type of taxable income that the above losses are able to offset. The majority of the tax losses shown in the above table are not expected to be realized, including certain losses that are limited in use due to change in control or same business tests.
We have taxable outside basis differences on certain investments in non-U.S. subsidiaries. No additional income taxes have been provided for any undistributed foreign earnings, or any additional outside basis difference inherent in these entities, as these amounts continue to be reinvested in foreign operations. At December 31, 2025, we have not provided deferred tax liabilities on an estimated $1.4 billion of cumulative temporary differences on the outside bases of our non-U.S. subsidiaries and corporate joint ventures.
A summary of cash taxes paid, net of refunds, by major jurisdiction is presented below:
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| in millions | |||||||||||||||||
| Domestic (a) | $ | — | $ | 0.2 | $ | 0.1 | |||||||||||
| Foreign: | |||||||||||||||||
U.S. | 113.4 | 87.9 | 394.8 | ||||||||||||||
| Belgium | 83.9 | 93.1 | 88.4 | ||||||||||||||
| Netherlands | (b) | 11.2 | (b) | ||||||||||||||
| Other (c) | 2.5 | 4.1 | 11.0 | ||||||||||||||
| Total foreign | 199.8 | 196.3 | 494.2 | ||||||||||||||
| Total | $ | 199.8 | $ | 196.5 | $ | 494.3 | |||||||||||
_______________
(a)For the year ended December 31, 2025, “domestic” represents Bermuda. For the years ended December 31, 2024 and 2023, “domestic” represents the U.K.
(b)The net amount of cash taxes paid during the year does not meet the 5% disaggregation threshold.
(c)The 2024 and 2023 amounts include $1.3 million and ($4.7 million), respectively, attributable to discontinued operations.
On July 4, 2025, the One Big Beautiful Bill Act (the OBBBA) was enacted in the U.S., introducing various changes to federal tax law. We have evaluated the provisions of the OBBBA and determined that they did not have a material impact on our consolidated financial statements through December 31, 2025, nor do we currently anticipate that the OBBBA will have a material impact on our consolidated financial statements in the future.
In December 2021, the Organization for Economic Co-Operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) released Model Global Anti-Base Erosion (GLoBE) rules under Pillar Two. These rules provide for the taxation of certain large multinational corporations at a minimum rate of 15.0%, calculated on a jurisdictional basis. Numerous countries in which we operate, including the U.K. and certain European Union (E.U.) member states, enacted legislation to implement many aspects of the Pillar Two rules beginning on January 1, 2024. The Pillar Two rules did not have an impact on our consolidated financial statements for the year ended December 31, 2025, and we do not currently anticipate that they will have a material impact on our consolidated financial statements in the future.
We and our subsidiaries file consolidated and standalone income tax returns in various jurisdictions. In the normal course of business, our income tax filings are subject to review by various taxing authorities. In connection with such reviews, disputes could arise with the taxing authorities over the interpretation or application of certain income tax rules related to our business in that tax jurisdiction. Such disputes may result in future tax and interest and penalty assessments by these taxing authorities. The ultimate resolution of tax contingencies will take place upon the earlier of (i) the settlement date with the applicable taxing authorities in either cash or agreement of income tax positions or (ii) the date when the taxing authorities are statutorily prohibited from adjusting the company’s tax computations.
In general, tax returns filed by our company or our subsidiaries for years prior to 2019 are no longer subject to examination by tax authorities. Certain of our subsidiaries are currently involved in income tax examinations in various jurisdictions in which we operate, including Belgium, Luxembourg, Slovakia and the U.S. While we do not expect adjustments from the foregoing examinations to have a material impact on our consolidated financial position, results of operations or cash flows, no assurance can be given that this will be the case given the amounts involved and the complex nature of the related issues.
The changes in our unrecognized tax benefits for the indicated periods are summarized below:
| 2025 | 2024 | 2023 | |||||||||||||||
| in millions | |||||||||||||||||
| Balance at January 1 | $ | 302.0 | $ | 444.4 | $ | 435.2 | |||||||||||
| Settlements with tax authorities | (168.3) | (3.9) | (4.0) | ||||||||||||||
| Foreign currency translation | 9.5 | (3.9) | 1.5 | ||||||||||||||
| Reductions for tax positions of prior years | (2.5) | (6.4) | (5.9) | ||||||||||||||
| Additions for tax positions of prior years | 1.0 | 19.2 | 8.5 | ||||||||||||||
| Lapse of statute of limitations | — | (173.5) | — | ||||||||||||||
| Additions based on tax positions related to the current year | — | 26.1 | 2.2 | ||||||||||||||
| Effects of business acquisitions | — | — | 6.9 | ||||||||||||||
| Balance at December 31 | $ | 141.7 | $ | 302.0 | $ | 444.4 | |||||||||||
No assurance can be given that any of these tax benefits will be recognized or realized.
As of December 31, 2025, 2024 and 2023, there were $88.9 million, $266.6 million and $347.0 million, respectively, of unrecognized tax benefits that would have a favorable impact on our effective income tax rate if ultimately recognized, after considering amounts that we would expect to be offset by valuation allowances and other factors.
During 2025, 2024 and 2023, the income tax benefit (expense) of our continuing operations included $45.1 million, ($7.9 million) and ($59.6 million), respectively, representing the net accrual of interest and penalties during the period. At December 31, 2025, accrued interest and penalties associated with our uncertain tax benefits totaled $113.5 million.
On October 7, 2022, the U.S. Department of Justice filed a suit against Liberty Global, Inc. (LGI), a wholly-owned U.S. subsidiary of Liberty Global, in the U.S. District Court of Colorado (the District Court) for unpaid federal income taxes and penalties for the 2018 tax year of approximately $284 million. This action by the U.S. Department of Justice is related to the November 2020 complaint filed by LGI in the District Court seeking a refund of approximately $110 million of taxes, penalties and interest associated with the application of certain temporary treasury regulations issued in June 2019. In October 2023, the District Court entered judgment against LGI with respect to the refund claim and we appealed this decision to the U.S. Court of Appeals for the Tenth Circuit (the Court of Appeals) in December 2023. No amounts have been accrued by LGI with respect to this matter. We continue to vigorously defend this matter and actively pursue our claim for refund.
In January 2021, we petitioned the U.S. Tax Court to address unresolved matters related to our 2010 tax year for which we had already recorded a liability for an unrecognized tax benefit. In November 2023, the U.S. Tax Court issued an unfavorable decision, which we subsequently appealed to the Court of Appeals. In December 2023, we made a $315 million payment for the disputed tax and estimated associated interest. While this payment reduced the liability for unrecognized tax benefits on our consolidated balance sheet, the position remained in our inventory of unrecognized tax benefits as the matter was not yet settled. In August 2025, the Court of Appeals upheld the U.S. Tax Court’s decision and we will not appeal further. As a result, we have now removed the position from our inventory of unrecognized tax benefits.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 16, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.