Liberty Broadband Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Net Property and Equipment

Net Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Net property and equipment consists of the following at December 31, 2016 and 2015 (amounts in thousands):



	2016		2015
Land and buildings	$	114,966	108,145
Telephony transmission equipment and distribution facilities	1,271,425		1,215,796
Cable transmission equipment and distribution facilities	231,539		218,259
Studio equipment	15,456		15,171
Support equipment and systems	290,209		251,302
Transportation equipment	23,674		17,398
Customer premise equipment	158,513		155,971
Fiber optic cable systems	351,460		309,217
Construction in progress	157,633		93,271
	2,614,875		2,384,530
Less accumulated depreciation	1,385,620		1,231,457
Less accumulated amortization on property and equipment under capital leases	67,337		58,692
Net property and equipment	$	1,161,918	1,094,381

Gross property and equipment under capital leases	$	112,495	112,495

KKCC Asset Acquisition

In November 2016, we acquired Kodiak-Kenai Cable Company, LLC ("KKCC") which through its wholly owned subsidiary owns the only low latency redundant fiber link between Anchorage, the Kenai Peninsula and Kodiak. We adopted ASU 2017-01, which allows us to treat the acquisition of KKCC as an asset acquisition.

Total consideration transferred to the previous owners of KKCC consisted of a cash payment of $19.7 million and the fair market value of $14.0 million for indefeasible right-to-use capacity that we owned on the KKCC fiber system ("IRU Capacity") that was terminated as a result of the acquisition. The IRU Capacity included as consideration was adjusted to fair value as of the acquisition date resulting in a $3.1 million gain recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2016.

We allocated the total consideration transferred to the acquired assets and liabilities assumed based on the relative fair value. The following table summarizes the allocation of total consideration (amounts in thousands):



Allocation of consideration to assets acquired and liabilities assumed:
Property and equipment	$	49,794
Deferred taxes	(12,211		)
Deferred revenue	(3,815		)
Total consideration	$	33,768