Exhibit 99.1

Unaudited Attributed Financial Information for Tracking Stock Groups

 

The following tables present our assets, liabilities, revenue, expenses and cash flows that are intended to be attributed to the Liberty Sirius XM Group, Liberty Braves Group and the Liberty Media Group, respectively. The financial information should be read in conjunction with our audited financial statements for the years ended December 31, 2015, 2014 and 2013 incorporated by reference herein. The attributed financial information presented in the tables has been prepared assuming this attribution had been completed as of January 1, 2013. However, this attribution of historical financial information does not purport to be what actual results and balances would have been if such attribution had actually occurred and been in place during these periods.

 

Notwithstanding the following attribution of assets, liabilities, revenue, expenses and cash flows to the Liberty Sirius Group, Liberty Braves Group and the Liberty Media Group, our tracking stock capital structure will not affect the ownership or the respective legal title to our assets or responsibility for our liabilities. We and our subsidiaries each continue to be responsible for our respective liabilities. Holders of Liberty Sirius XM common stock, Liberty Braves common stock and Liberty Media common stock will be holders of our common stock and continue to be subject to risks associated with an investment in our company and all of our businesses, assets and liabilities. The issuance of Liberty Sirius XM common stock, Liberty Braves and Liberty Media common stock does not affect the rights of our creditors.

 

1

 


 

 

SUMMARY ATTRIBUTED FINANCIAL DATA

 

Liberty SiriusXM Group

 

Summary Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2015

 

2014

 

 

 

amounts in millions

 

Cash and cash equivalents

 

$

112

 

148

 

Investments in affiliates, accounted for using the equity method

 

$

153

 

237

 

Intangible assets not subject to amortization

 

$

23,695

 

23,695

 

Intangible assets subject to amortization, net

 

$

1,027

 

1,088

 

Total assets

 

$

27,001

 

27,092

 

Deferred revenue

 

$

1,769

 

1,615

 

Long-term debt, including current portion

 

$

5,709

 

4,756

 

Deferred tax liabilities

 

$

1,622

 

1,344

 

Attributed net assets

 

$

9,599

 

9,515

 

Noncontrolling interest

 

$

7,198

 

8,778

 

 

Summary Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2015

 

2014

 

2013

 

 

 

amounts in millions

 

Revenue

 

$

4,552

 

4,141

 

3,625

 

Cost of subscriber services (1)

 

$

1,823

 

1,580

 

1,334

 

Other operating expenses (2)

 

$

73

 

71

 

62

 

Selling, general and administrative expense (3)

 

$

728

 

679

 

582

 

Operating income (loss)

 

$

1,073

 

1,004

 

878

 

Interest expense

 

$

(307)

 

(234)

 

(109)

 

Gains (losses) on transactions, net

 

$

 —

 

2

 

7,479

 

Income tax (expense) benefit

 

$

(322)

 

(327)

 

154

 

Net earnings (loss) attributable to noncontrolling interests

 

$

184

 

217

 

211

 

Earnings (loss) attributable to Liberty Media Corporation stockholders

 

$

259

 

231

 

8,190

 

 

(1)

Includes stock-based compensation of $32 million, $30 million and $26 million for the years ended December 31, 2015, 2014 and 2013, respectively.

(2)

Includes stock-based compensation of $18 million, $17 million and $14 million for the years ended December 31, 2015, 2014 and 2013, respectively.

(3)

Includes stock-based compensation of $107 million, $101 million and $93 million for the years ended December 31, 2015, 2014 and 2013, respectively.

 

2

 


 

 

Liberty Braves Group

 

Summary Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2015

 

2014

 

 

 

amounts in millions

 

Cash and cash equivalents

 

$

13

 

11

 

Investments in affiliates, accounted for using the equity method

 

$

39

 

38

 

Intangible assets not subject to amortization

 

$

323

 

323

 

Intangible assets subject to amortization, net

 

$

70

 

78

 

Total assets

 

$

849

 

604

 

Deferred revenue

 

$

28

 

26

 

Long-term debt, including current portion

 

$

139

 

99

 

Deferred tax liabilities

 

$

49

 

55

 

Attributed net assets

 

$

351

 

371

 

 

Summary Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2015

 

2014

 

2013

 

 

 

amounts in millions

 

Revenue

 

$

243

 

250

 

260

 

Selling, general and administrative expense (1)

 

$

61

 

58

 

58

 

Operating income (loss)

 

$

(38)

 

(47)

 

7

 

Share of earnings (losses) of affiliates, net

 

$

9

 

10

 

5

 

Earnings (loss) attributable to Liberty Media Corporation stockholders

 

$

(20)

 

(24)

 

6

 

(1)

Includes stock-based compensation of $10 million, $12 million and $10 million for the years ended December 31, 2015, 2014 and 2013, respectively.

 

 

3

 


 

 

Liberty Media Group

 

Summary Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2015

 

2014

 

 

 

amounts in millions

 

Cash and cash equivalents

 

$

76

 

522

 

Investments in available for sale securities and other cost investments

 

$

525

 

808

 

Investments in affiliates, accounted for using the equity method

 

$

923

 

576

 

Total assets

 

$

1,952

 

2,573

 

Long-term debt, including current portion

 

$

1,033

 

990

 

Attributed net assets

 

$

983

 

1,512

 

 

Summary Statement of Operations Data:

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2015

 

2014

 

2013

 

 

 

amounts in millions

 

Revenue

 

$

 —

 

59

 

117

 

Selling, general and administrative expense (1)

 

$

72

 

136

 

124

 

Operating income (loss)

 

$

(81)

 

(116)

 

(71)

 

Interest expense

 

$

(20)

 

(21)

 

(22)

 

Share of earnings (losses) of affiliates, net

 

$

(48)

 

(128)

 

(52)

 

Realized and unrealized gains (losses) on financial instruments, net

 

$

(140)

 

38

 

295

 

Gains (losses) on transactions, net

 

$

(4)

 

(2)

 

499

 

Income tax (expense) benefit

 

$

102

 

248

 

(14)

 

Earnings (loss) attributable to Liberty Media Corporation stockholders

 

$

(175)

 

(29)

 

584

 

(1)

Includes stock-based compensation of $37 million, $57 million and $50 million for the years ended December 31, 2015, 2014 and 2013, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 


 

 

BALANCE SHEET INFORMATION

December 31, 2015

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

 

 

Liberty

 

Liberty

 

Liberty

 

 

 

 

 

 

 

SiriusXM

 

Braves

 

Media

 

Inter-Group

 

Consolidated

 

 

    

Group

 

Group

 

Group

 

Eliminations

 

Liberty

    

 

 

amounts in millions

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

112

 

13

 

76

 

 —

 

201

 

Trade and other receivables, net

 

 

235

 

9

 

3

 

 —

 

247

 

Short term marketable securities

 

 

 —

 

 —

 

15

 

 —

 

15

 

Other current assets

 

 

215

 

10

 

3

 

 —

 

228

 

Total current assets

 

 

562

 

32

 

97

 

 —

 

691

 

Investments in available-for-sale securities and other cost investments (note 2)

 

 

 —

 

8

 

525

 

 —

 

533

 

Investments in affiliates, accounted for using the equity method (note 3)

 

 

153

 

39

 

923

 

 —

 

1,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, at cost

 

 

1,984

 

406

 

197

 

 —

 

2,587

 

Accumulated depreciation

 

 

(571)

 

(44)

 

(93)

 

 —

 

(708)

 

 

 

 

1,413

 

362

 

104

 

 —

 

1,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets not subject to amortization

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

14,165

 

180

 

 —

 

 —

 

14,345

 

FCC licenses

 

 

8,600

 

 —

 

 —

 

 —

 

8,600

 

Other

 

 

930

 

143

 

 —

 

 —

 

1,073

 

 

 

 

23,695

 

323

 

 —

 

 —

 

24,018

 

Intangible assets subject to amortization, net

 

 

1,027

 

70

 

 —

 

 —

 

1,097

 

Deferred tax assets

 

 

 —

 

 —

 

4

 

(4)

 

 —

 

Other assets, at cost, net of accumulated amortization

 

 

151

 

15

 

299

 

 —

 

465

 

Total assets

 

$

27,001

 

849

 

1,952

 

(4)

 

29,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Intergroup payable (receivable) (note 6)

 

$

116

 

25

 

(141)

 

 —

 

 —

 

Accounts payable and accrued liabilities

 

 

717

 

24

 

17

 

 —

 

758

 

Current portion of debt (note 4)

 

 

255

 

 —

 

 —

 

 —

 

255

 

Deferred revenue

 

 

1,769

 

28

 

 —

 

 —

 

1,797

 

Other current liabilities

 

 

3

 

 —

 

 —

 

 —

 

3

 

Total current liabilities

 

 

2,860

 

77

 

(124)

 

 —

 

2,813

 

Long-term debt (note 4)

 

 

5,454

 

139

 

1,033

 

 —

 

6,626

 

Deferred income tax liabilities (note 6)

 

 

1,622

 

49

 

 —

 

(4)

 

1,667

 

Other liabilities

 

 

268

 

233

 

60

 

 —

 

561

 

Total liabilities

 

 

10,204

 

498

 

969

 

(4)

 

11,667

 

Equity / Attributed net assets

 

 

9,599

 

351

 

983

 

 —

 

10,933

 

Noncontrolling interests in equity of subsidiaries

 

 

7,198

 

 —

 

 —

 

 —

 

7,198

 

Total liabilities and equity

 

$

27,001

 

849

 

1,952

 

(4)

 

29,798

 

 

5

 


 

 

BALANCE SHEET INFORMATION

December 31, 2014

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

 

 

Liberty

 

Liberty

 

Liberty

 

 

 

 

 

 

 

SiriusXM

 

Braves

 

Media

 

Inter-Group

 

Consolidated

 

 

    

Group

 

Group

 

Group

 

Eliminations

 

Liberty

    

 

 

amounts in millions

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

148

 

11

 

522

 

 —

 

681

 

Trade and other receivables, net

 

 

221

 

9

 

5

 

 —

 

235

 

Short term marketable securities

 

 

 —

 

 —

 

199

 

 —

 

199

 

Other current assets

 

 

142

 

23

 

105

 

 —

 

270

 

Total current assets

 

 

511

 

43

 

831

 

 —

 

1,385

 

Investments in available-for-sale securities and other cost investments (note 2)

 

 

 —

 

8

 

808

 

 —

 

816

 

Investments in affiliates, accounted for using the equity method (note 3)

 

 

237

 

38

 

576

 

 —

 

851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, at cost

 

 

1,925

 

140

 

150

 

 —

 

2,215

 

Accumulated depreciation

 

 

(378)

 

(41)

 

(82)

 

 —

 

(501)

 

 

 

 

1,547

 

99

 

68

 

 —

 

1,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets not subject to amortization

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

14,165

 

180

 

 —

 

 —

 

14,345

 

FCC licenses

 

 

8,600

 

 —

 

 —

 

 —

 

8,600

 

Other

 

 

930

 

143

 

 —

 

 —

 

1,073

 

 

 

 

23,695

 

323

 

 —

 

 —

 

24,018

 

Intangible assets subject to amortization, net

 

 

1,088

 

78

 

 —

 

 —

 

1,166

 

Other assets, at cost, net of accumulated amortization

 

 

14

 

15

 

290

 

 —

 

319

 

Total assets

 

$

27,092

 

604

 

2,573

 

 —

 

30,269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Intergroup payable (receivable) (note 6)

 

$

120

 

(4)

 

(116)

 

 —

 

 —

 

Accounts payable and accrued liabilities

 

 

669

 

20

 

23

 

 —

 

712

 

Current portion of debt (note 4)

 

 

257

 

 —

 

 —

 

 —

 

257

 

Deferred revenue

 

 

1,615

 

26

 

 —

 

 —

 

1,641

 

Other current liabilities

 

 

40

 

 —

 

 —

 

 —

 

40

 

Total current liabilities

 

 

2,701

 

42

 

(93)

 

 —

 

2,650

 

Long-term debt (note 4)

 

 

4,499

 

99

 

990

 

 —

 

5,588

 

Deferred income tax liabilities (note 6)

 

 

1,344

 

55

 

108

 

 —

 

1,507

 

Other liabilities

 

 

255

 

37

 

56

 

 —

 

348

 

Total liabilities

 

 

8,799

 

233

 

1,061

 

 —

 

10,093

 

Equity / Attributed net assets

 

 

9,515

 

371

 

1,512

 

 —

 

11,398

 

Noncontrolling interests in equity of subsidiaries

 

 

8,778

 

 —

 

 —

 

 —

 

8,778

 

Total liabilities and equity

 

$

27,092

 

604

 

2,573

 

 —

 

30,269

 

STATEMENT OF OPERATIONS INFORMATION

December 31, 2015

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

Liberty

 

Liberty

 

Liberty

 

 

 

 

 

SiriusXM

 

Braves

 

Media

 

Consolidated

 

 

 

Group

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Revenue:

 

 

 

 

 

 

 

 

 

 

Subscriber revenue

 

$

3,807

 

 —

 

 —

 

3,807

 

Other revenue

 

 

745

 

243

 

 —

 

988

 

Total revenue

 

 

4,552

 

243

 

 —

 

4,795

 

Operating costs and expenses, including stock-based compensation (note 5):

 

 

 

 

 

 

 

 

 

 

Cost of subscriber services (exclusive of depreciation shown separately below):

 

 

 

 

 

 

 

 

 

 

Revenue and share royalties

 

 

1,035

 

 —

 

 —

 

1,035

 

Programming and content

 

 

267

 

 —

 

 —

 

267

 

Customer service and billing

 

 

380

 

 —

 

 —

 

380

 

Other

 

 

141

 

 —

 

 —

 

141

 

Subscriber acquisition costs

 

 

533

 

 —

 

 —

 

533

 

Other operating expenses

 

 

73

 

189

 

 —

 

262

 

Selling, general and administrative

 

 

728

 

61

 

72

 

861

 

Depreciation and amortization

 

 

322

 

31

 

9

 

362

 

 

 

 

3,479

 

281

 

81

 

3,841

 

Operating income (loss)

 

 

1,073

 

(38)

 

(81)

 

954

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(307)

 

(1)

 

(20)

 

(328)

 

Dividend and interest income

 

 

 —

 

 —

 

17

 

17

 

Share of earnings (losses) of affiliates, net

 

 

(1)

 

9

 

(48)

 

(40)

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

 —

 

 —

 

(140)

 

(140)

 

Gains (losses) on transactions, net

 

 

 —

 

 —

 

(4)

 

(4)

 

Other, net

 

 

 —

 

 —

 

(1)

 

(1)

 

 

 

 

(308)

 

8

 

(196)

 

(496)

 

Earnings (loss) from continuing operations before income taxes

 

 

765

 

(30)

 

(277)

 

458

 

Income tax (expense) benefit (note 6)

 

 

(322)

 

10

 

102

 

(210)

 

Net earnings (loss)

 

 

443

 

(20)

 

(175)

 

248

 

Less net earnings (loss) attributable to the noncontrolling interests

 

 

184

 

 —

 

 —

 

184

 

Net earnings (loss) attributable to Liberty stockholders

 

$

259

 

(20)

 

(175)

 

64

 

6

 


 

 

STATEMENT OF OPERATIONS INFORMATION

December 31, 2014

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

Liberty

 

Liberty

 

Liberty

 

 

 

 

 

SiriusXM

 

Braves

 

Media

 

Consolidated

 

 

 

Group

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Revenue:

 

 

 

 

 

 

 

 

 

 

Subscriber revenue

 

$

3,514

 

 —

 

 —

 

3,514

 

Other revenue

 

 

627

 

250

 

59

 

936

 

Total revenue

 

 

4,141

 

250

 

59

 

4,450

 

Operating costs and expenses, including stock-based compensation (note 5):

 

 

 

 

 

 

 

 

 

 

Cost of subscriber services (exclusive of depreciation shown separately below):

 

 

 

 

 

 

 

 

 

 

Revenue and share royalties

 

 

810

 

 —

 

 —

 

810

 

Programming and content

 

 

262

 

 —

 

 —

 

262

 

Customer service and billing

 

 

373

 

 —

 

 —

 

373

 

Other

 

 

135

 

 —

 

 —

 

135

 

Subscriber acquisition costs

 

 

493

 

 —

 

 —

 

493

 

Other operating expenses

 

 

71

 

210

 

23

 

304

 

Selling, general and administrative

 

 

679

 

58

 

136

 

873

 

Depreciation and amortization

 

 

314

 

29

 

16

 

359

 

 

 

 

3,137

 

297

 

175

 

3,609

 

Operating income (loss)

 

 

1,004

 

(47)

 

(116)

 

841

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(234)

 

 —

 

(21)

 

(255)

 

Dividend and interest income

 

 

1

 

 —

 

26

 

27

 

Share of earnings (losses) of affiliates, net

 

 

5

 

10

 

(128)

 

(113)

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

 —

 

 —

 

38

 

38

 

Gains (losses) on transactions, net

 

 

2

 

 —

 

(2)

 

 —

 

Other, net

 

 

(3)

 

 —

 

(74)

 

(77)

 

 

 

 

(229)

 

10

 

(161)

 

(380)

 

Earnings (loss) from continuing operations before income taxes

 

 

775

 

(37)

 

(277)

 

461

 

Income tax (expense) benefit (note 6)

 

 

(327)

 

13

 

248

 

(66)

 

Net earnings (loss)

 

 

448

 

(24)

 

(29)

 

395

 

Less net earnings (loss) attributable to the noncontrolling interests

 

 

217

 

 —

 

 —

 

217

 

Net earnings (loss) attributable to Liberty stockholders

 

$

231

 

(24)

 

(29)

 

178

 

7

 


 

 

STATEMENT OF OPERATIONS INFORMATION

December 31, 2013

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

Liberty

 

Liberty

 

Liberty

 

 

 

 

 

SiriusXM

 

Braves

 

Media

 

Consolidated

 

 

 

Group

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Revenue:

 

 

 

 

 

 

 

 

 

 

Subscriber revenue

 

$

3,131

 

 —

 

 —

 

3,131

 

Other revenue

 

 

494

 

260

 

117

 

871

 

Total revenue

 

 

3,625

 

260

 

117

 

4,002

 

Operating costs and expenses, including stock-based compensation (note 5):

 

 

 

 

 

 

 

 

 

 

Cost of subscriber services (exclusive of depreciation shown separately below):

 

 

 

 

 

 

 

 

 

 

Revenue and share royalties

 

 

679

 

 —

 

 —

 

679

 

Programming and content

 

 

243

 

 —

 

 —

 

243

 

Customer service and billing

 

 

308

 

 —

 

 —

 

308

 

Other

 

 

104

 

 —

 

 —

 

104

 

Subscriber acquisition costs

 

 

491

 

 —

 

 —

 

491

 

Other operating expenses

 

 

62

 

170

 

52

 

284

 

Selling, general and administrative

 

 

582

 

58

 

124

 

764

 

Depreciation and amortization

 

 

278

 

25

 

12

 

315

 

 

 

 

2,747

 

253

 

188

 

3,188

 

Operating income (loss)

 

 

878

 

7

 

(71)

 

814

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(109)

 

(1)

 

(22)

 

(132)

 

Dividend and interest income

 

 

2

 

 —

 

46

 

48

 

Share of earnings (losses) of affiliates, net

 

 

15

 

5

 

(52)

 

(32)

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

 —

 

 —

 

295

 

295

 

Gains (losses) on transactions, net

 

 

7,479

 

 —

 

499

 

7,978

 

Other, net

 

 

(18)

 

 —

 

(97)

 

(115)

 

 

 

 

7,369

 

4

 

669

 

8,042

 

Earnings (loss) from continuing operations before income taxes

 

 

8,247

 

11

 

598

 

8,856

 

Income tax (expense) benefit (note 6)

 

 

154

 

(5)

 

(14)

 

135

 

Net earnings (loss)

 

 

8,401

 

6

 

584

 

8,991

 

Less net earnings (loss) attributable to the noncontrolling interests

 

 

211

 

 —

 

 —

 

211

 

Net earnings (loss) attributable to Liberty stockholders

 

$

8,190

 

6

 

584

 

8,780

 

 

 

8

 


 

 

STATEMENT OF CASH FLOWS INFORMATION

December 31, 2015

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

Liberty

 

Liberty

 

Liberty

 

 

 

 

 

SiriusXM

 

Braves

 

Media

 

Consolidated

 

 

 

Group

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

443

 

(20)

 

(175)

 

248

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

322

 

31

 

9

 

362

 

Stock-based compensation

 

 

157

 

10

 

37

 

204

 

Excess tax benefit from stock-based compensation

 

 

(19)

 

 —

 

 —

 

(19)

 

Share of (earnings) loss of affiliates, net

 

 

1

 

(9)

 

48

 

40

 

Realized and unrealized (gains) losses on financial instruments, net

 

 

 —

 

 —

 

140

 

140

 

Noncash interest expense

 

 

6

 

 —

 

 —

 

6

 

Losses (gains) on transactions, net

 

 

 —

 

 —

 

4

 

4

 

Losses (gains) on dilution of investment in affiliate

 

 

 —

 

 —

 

1

 

1

 

Deferred income tax expense (benefit)

 

 

290

 

(6)

 

(109)

 

175

 

Intergroup tax allocation

 

 

(4)

 

(4)

 

8

 

 —

 

Intergroup tax (payments) receipts

 

 

 —

 

1

 

(1)

 

 —

 

Other charges (credits), net

 

 

15

 

 —

 

 —

 

15

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

Current and other assets

 

 

(220)

 

9

 

3

 

(208)

 

Payables and other liabilities

 

 

212

 

33

 

 —

 

245

 

Net cash provided (used) by operating activities

 

 

1,203

 

45

 

(35)

 

1,213

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Cash proceeds from dispositions of investments

 

 

 —

 

24

 

151

 

175

 

Proceeds (payments) from settlement of financial instruments, net

 

 

 —

 

 —

 

(322)

 

(322)

 

Investments in and loans to cost and equity investees

 

 

 —

 

 —

 

(19)

 

(19)

 

Capital expended for property and equipment

 

 

(135)

 

(128)

 

(33)

 

(296)

 

Purchases of short term investments and other marketable securities

 

 

 —

 

 —

 

(174)

 

(174)

 

Sales of short term investments and other marketable securities

 

 

 —

 

 —

 

358

 

358

 

Other investing activities, net

 

 

 —

 

(9)

 

1

 

(8)

 

Net cash provided (used) by investing activities

 

 

(135)

 

(113)

 

(38)

 

(286)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

1,978

 

197

 

38

 

2,213

 

Repayments of debt

 

 

(1,038)

 

(158)

 

 —

 

(1,196)

 

Intergroup (payments) receipts

 

 

9

 

31

 

(40)

 

 —

 

Repurchases of Liberty common stock

 

 

 —

 

 —

 

(350)

 

(350)

 

Shares repurchased by subsidiary

 

 

(2,018)

 

 —

 

 —

 

(2,018)

 

Proceeds (payments) from issuances and settlements of financial instruments, net

 

 

 —

 

 —

 

5

 

5

 

Taxes paid in lieu of shares issued for stock-based compensation

 

 

(54)

 

 —

 

(26)

 

(80)

 

Excess tax benefit from stock-based compensation

 

 

19

 

 —

 

 —

 

19

 

Net cash provided (used) by financing activities

 

 

(1,104)

 

70

 

(373)

 

(1,407)

 

Net increase (decrease) in cash and cash equivalents

 

 

(36)

 

2

 

(446)

 

(480)

 

Cash and cash equivalents at beginning of period

 

 

148

 

11

 

522

 

681

 

Cash and cash equivalents at end of period

 

$

112

 

13

 

76

 

201

 

 

9

 


 

 

STATEMENT OF CASH FLOWS INFORMATION

December 31, 2014

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

Liberty

 

Liberty

 

Liberty

 

 

 

 

 

SiriusXM

 

Braves

 

Media

 

Consolidated

 

 

 

Group

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

448

 

(24)

 

(29)

 

395

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

314

 

29

 

16

 

359

 

Stock-based compensation

 

 

148

 

12

 

57

 

217

 

Cash payments for stock-based compensation

 

 

 —

 

(27)

 

(2)

 

(29)

 

Excess tax benefit from stock-based compensation

 

 

(2)

 

 —

 

(1)

 

(3)

 

Share of (earnings) loss of affiliates, net

 

 

(5)

 

(10)

 

128

 

113

 

Realized and unrealized (gains) losses on financial instruments, net

 

 

 —

 

 —

 

(38)

 

(38)

 

Noncash interest expense

 

 

(35)

 

 —

 

1

 

(34)

 

Losses (gains) on dilution of investment in affiliate

 

 

2

 

 —

 

76

 

78

 

Deferred income tax expense (benefit)

 

 

284

 

(7)

 

(186)

 

91

 

Intergroup tax allocation

 

 

30

 

(5)

 

(25)

 

 —

 

Intergroup tax (payments) receipts

 

 

 —

 

(10)

 

10

 

 —

 

Other charges (credits), net

 

 

19

 

 —

 

(2)

 

17

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

Current and other assets

 

 

(20)

 

(53)

 

(1)

 

(74)

 

Payables and other liabilities

 

 

57

 

11

 

(35)

 

33

 

Net cash provided (used) by operating activities

 

 

1,240

 

(84)

 

(31)

 

1,125

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Cash (paid) for acquisitions, net of cash acquired

 

 

2

 

 —

 

(49)

 

(47)

 

Cash proceeds from dispositions of investments

 

 

 —

 

 —

 

247

 

247

 

Proceeds (payments) from settlement of financial instruments, net

 

 

 —

 

 —

 

(72)

 

(72)

 

Investments in and loans to cost and equity investees

 

 

 —

 

 —

 

(183)

 

(183)

 

Repayment of loans and other cash receipts from cost and equity investees

 

 

32

 

10

 

 —

 

42

 

Capital expended for property and equipment

 

 

(126)

 

(66)

 

(2)

 

(194)

 

Purchases of short term investments and other marketable securities

 

 

 —

 

 —

 

(360)

 

(360)

 

Sales of short term investments and other marketable securities

 

 

 —

 

 —

 

176

 

176

 

Other investing activities, net

 

 

 —

 

(6)

 

(14)

 

(20)

 

Net cash provided (used) by investing activities

 

 

(92)

 

(62)

 

(257)

 

(411)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

2,658

 

100

 

 —

 

2,758

 

Repayments of debt

 

 

(1,266)

 

 —

 

(670)

 

(1,936)

 

Intergroup (payments) receipts

 

 

(335)

 

 —

 

335

 

 —

 

Cash provided by the Broadband Spin-Off

 

 

 —

 

 —

 

259

 

259

 

Shares repurchased by subsidiary

 

 

(2,157)

 

 —

 

 —

 

(2,157)

 

Taxes paid in lieu of shares issued for stock-based compensation

 

 

(37)

 

 —

 

(11)

 

(48)

 

Excess tax benefit from stock-based compensation

 

 

2

 

 —

 

1

 

3

 

Net cash provided (used) by financing activities

 

 

(1,135)

 

100

 

(86)

 

(1,121)

 

Net increase (decrease) in cash and cash equivalents

 

 

13

 

(46)

 

(374)

 

(407)

 

Cash and cash equivalents at beginning of period

 

 

135

 

57

 

896

 

1,088

 

Cash and cash equivalents at end of period

 

$

148

 

11

 

522

 

681

 

 

 

 

 

 

10

 


 

 

STATEMENT OF CASH FLOWS INFORMATION

December 31, 2013

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

Liberty

 

Liberty

 

Liberty

 

 

 

 

 

SiriusXM

 

Braves

 

Media

 

Consolidated

 

 

 

Group

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

8,401

 

6

 

584

 

8,991

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

278

 

25

 

12

 

315

 

Stock-based compensation

 

 

133

 

10

 

50

 

193

 

Cash payments for stock-based compensation

 

 

 —

 

 —

 

(2)

 

(2)

 

Excess tax benefit from stock-based compensation

 

 

 —

 

 —

 

(6)

 

(6)

 

Share of (earnings) loss of affiliates, net

 

 

(15)

 

(5)

 

52

 

32

 

Realized and unrealized (gains) losses on financial instruments, net

 

 

 —

 

 —

 

(295)

 

(295)

 

Noncash interest expense

 

 

(62)

 

 —

 

 —

 

(62)

 

Losses (gains) on transactions, net

 

 

(7,479)

 

 —

 

(499)

 

(7,978)

 

Losses (gains) on dilution of investment in affiliate

 

 

 —

 

 —

 

93

 

93

 

Losses (gains) on early extinguishment of debt

 

 

18

 

 —

 

3

 

21

 

Deferred income tax expense (benefit)

 

 

(183)

 

(11)

 

22

 

(172)

 

Intergroup tax allocation

 

 

30

 

14

 

(44)

 

 —

 

Other charges (credits), net

 

 

1

 

 —

 

(4)

 

(3)

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 —

 

Current and other assets

 

 

64

 

(3)

 

126

 

187

 

Payables and other liabilities

 

 

(127)

 

5

 

44

 

(78)

 

Net cash provided (used) by operating activities

 

 

1,059

 

41

 

136

 

1,236

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Cash (paid) for acquisitions, net of cash acquired

 

 

(117)

 

 —

 

 —

 

(117)

 

Cash proceeds from dispositions of investments

 

 

 —

 

 —

 

80

 

80

 

Proceeds (payments) from settlement of financial instruments, net

 

 

 —

 

 —

 

(59)

 

(59)

 

Investments in and loans to cost and equity investees

 

 

 —

 

 —

 

(2,585)

 

(2,585)

 

Repayment of loans and other cash receipts from cost and equity investees

 

 

16

 

4

 

61

 

81

 

Capital expended for property and equipment

 

 

(199)

 

(3)

 

(5)

 

(207)

 

Purchases of short term investments and other marketable securities

 

 

 —

 

 —

 

(178)

 

(178)

 

Sales of short term investments and other marketable securities

 

 

 —

 

 —

 

229

 

229

 

Other investing activities, net

 

 

 —

 

(8)

 

 —

 

(8)

 

Net cash provided (used) by investing activities

 

 

(300)

 

(7)

 

(2,457)

 

(2,764)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

3,168

 

 —

 

2,755

 

5,923

 

Repayments of debt

 

 

(1,926)

 

 —

 

(853)

 

(2,779)

 

Repurchases of Liberty common stock

 

 

 —

 

 —

 

(140)

 

(140)

 

Cash included in exchange transaction

 

 

 —

 

 —

 

(429)

 

(429)

 

Shares repurchased by subsidiary

 

 

(1,602)

 

 —

 

 —

 

(1,602)

 

Intergroup (payments) receipts

 

 

(232)

 

 —

 

232

 

 —

 

Proceeds (payments) from issuances and settlements of financial instruments, net

 

 

 —

 

 —

 

(299)

 

(299)

 

Issuance of warrants

 

 

 —

 

 —

 

170

 

170

 

Taxes paid in lieu of shares issued for stock-based compensation

 

 

(46)

 

 —

 

(5)

 

(51)

 

Excess tax benefit from stock-based compensation

 

 

 —

 

 —

 

6

 

6

 

Other financing activities, net

 

 

13

 

12

 

(11)

 

14

 

Net cash provided (used) by financing activities

 

 

(625)

 

12

 

1,426

 

813

 

 

 

 

 

 

 

 

 

 

(continued)

 

 

11

 


 

 

STATEMENT OF CASH FLOWS INFORMATION - Continued

December 31, 2013

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

 

Liberty

 

Liberty

 

Liberty

 

 

 

 

 

 

SiriusXM

 

Braves

 

Media

 

Consolidated

 

 

 

 

Group

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

(continued)

 

 

 

 

 

 

 

 

 

 

Net cash provided (used) by discontinued operations:

 

 

 

 

 

 

 

 

 

 

Cash provided (used) by operating activities

 

$

 —

 

 —

 

 —

 

 —

 

Cash provided (used) by investing activities

 

 

 —

 

 —

 

 —

 

 —

 

Cash provided (used) by financing activities

 

 

 —

 

 —

 

550

 

550

 

Change in available cash held by discontinued operations

 

 

 —

 

 —

 

650

 

650

 

Net cash provided (used) by discontinued operations

 

 

 —

 

 —

 

1,200

 

1,200

 

Net increase (decrease) in cash and cash equivalents

 

 

134

 

46

 

305

 

485

 

Cash and cash equivalents at beginning of period

 

 

1

 

11

 

591

 

603

 

Cash and cash equivalents at end of period

 

$

135

 

57

 

896

 

1,088

 

 

 

12

 


 

Notes to Attributed Financial Information

(unaudited)

 

 

 

 

(1)

The Liberty SiriusXM Group comprises our consolidated subsidiary, Sirius XM Holdings, Inc. (“SIRIUS XM”), $50 million in corporate cash (not reflected in these attributed financial statements) and its margin loan obligation incurred by a wholly-owned special purpose subsidiary of Liberty.

 

The Liberty Braves Group will initially comprise our consolidated subsidiary, Braves Holdings, LLC (“Braves Holdings”), which indirectly owns the Atlanta Braves Major League Baseball Club (“ANLBC”) and certain assets and liabilities associated with ANLBC’s stadium and mixed use development project (the “Development Project”), $50 million of corporate cash (not reflected in these attributed financial statements) and all liabilities arising under a note obligation from Braves Holdings to Liberty, with a total borrowing capacity of up to $165 million by Braves Holdings (the “Intergroup Note”) relating to funds borrowed and used for investment in the Development Project. As of December 31, 2015, Braves Holdings had drawn approximately $31 million on the Intergroup Note, which is included in the Intergroup payable (receivable) line item in the consolidated attributed balance sheet. The Intergroup Note is expected to be repaid using proceeds from a proposed subscription rights offering (as described in more detail below). Any remaining proceeds from the rights offering will be attributed to the Liberty Braves Group.

 

The Liberty Media Group will comprise all of the businesses, assets and liabilities of Liberty Media Corporation (“Liberty”) other than those specifically attributed to the Liberty SiriusXM Group or the Liberty Braves Group, including Liberty’s interests in Live Nation Entertainment, Inc. (“Live Nation”), minority equity investments in Time Warner Inc. and Viacom, Inc., the Intergroup Note, the recovery received in connection with the Vivendi lawsuit and cash, as well as Liberty’s 1.375% Cash Convertible Notes due 2023 and related financial instruments. Following the creation of the tracking stocks, the Liberty Media Group will also hold an approximate 20% inter-group interest in the Liberty Braves Group.

 

Liberty intends to distribute subscription rights related to the Liberty Braves Group tracking stock following the creation of the tracking stocks. The subscription rights to acquire shares of Series C Liberty Braves tracking stock are expected to be issued to raise capital to repay the Intergroup Note and for working capital purposes. The subscription rights would enable the holders to acquire shares of Series C Liberty Braves tracking stock at a 20% discount to the market price of the Series C Liberty Braves tracking stock. Liberty expects the subscription rights to be publicly traded, once the exercise price has been established and the rights offering to expire twenty trading days following its commencement. The accompanying financial information does not reflect the impact of the anticipated subscription rights distribution.

 

13

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

 

(2)

Investments in AFS securities, which are recorded at their respective fair market values, and other cost investments are summarized as follows:

 

 

 

 

 

 

 

 

 

    

December 31, 2015

   

December 31, 2014

 

 

 

amounts in millions

 

Liberty SiriusXM Group

 

 

 

 

 

 

Other AFS and cost investments

 

$

 —

 

 —

 

Total attributed Liberty SiriusXM Group

 

 

 —

 

 —

 

 

 

 

 

 

 

 

Liberty Braves Group

 

 

 

 

 

 

Other AFS and cost investments

 

 

8

 

8

 

Total attributed Liberty Braves Group

 

 

8

 

8

 

 

 

 

 

 

 

 

Liberty Media Group

 

 

 

 

 

 

Fair Value Option Securities

    

 

 

    

 

 

Time Warner, Inc. (a)

 

 

275

 

363

 

Viacom, Inc. (b)

 

 

76

 

273

 

Other equity securities

 

 

74

 

82

 

Other debt securities

 

 

25

 

27

 

Total Fair Value Option Securities

 

 

450

 

745

 

AFS and cost investments

 

 

 

 

 

 

Live Nation debt securities

 

 

24

 

24

 

Other AFS and cost investments

 

 

51

 

39

 

Total AFS and cost investments

 

 

75

 

63

 

Total attributed Liberty Media Group

 

 

525

 

808

 

 

 

 

 

 

 

 

Consolidated Liberty

 

$

533

 

816

 

(a)

Shares of Time Warner, Inc., which are held by the Liberty Media Group, are pledged as collateral pursuant to certain margin loan agreements, which are held by the Liberty SiriusXM Group, and the Braves Holdings mixed-use development facility, which is held by the Liberty Braves Group, as of December 31, 2015. See note 4 below for details regarding the number and fair value of shares pledged as collateral pursuant to certain margin loan agreements and the Braves Holdings mixed-use development facility as of December 31, 2015.

(b)

During the year ended December 31, 2015, Liberty sold 1.8 million shares of Viacom, Inc. common stock for approximately $122 million in proceeds.

14

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

(3)

The following table presents information regarding certain equity method investments attributed to each of the Liberty SiriusXM Group, Liberty Braves Group and Liberty Media Group:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

December 31, 2014

 

 

    

Percentage

    

Market

    

Carrying

    

Carrying

 

 

 

ownership

 

Value

 

amount

 

amount

 

 

 

dollar amounts in millions

 

Liberty SiriusXM Group

 

 

 

 

 

 

 

 

 

 

 

SIRIUS XM Canada (a)

 

37%

 

 

142

 

$

153

 

237

 

Total Liberty SiriusXM Group

 

 

 

 

 

 

 

153

 

237

 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Braves Group

 

 

 

 

 

 

 

 

 

 

 

Other

 

NA

 

 

NA

 

 

39

 

38

 

Total Liberty Braves Group

 

 

 

 

 

 

 

39

 

38

 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Media Group

 

 

 

 

 

 

 

 

 

 

 

Live Nation (b)(c)

 

35%

 

 

1,711

 

 

764

 

396

 

Other

 

various

 

 

NA

 

 

159

 

180

 

Total Liberty Media Group

 

 

 

 

 

 

 

923

 

576

 

Consolidated Liberty

 

 

 

 

 

 

$

1,115

 

851

 

(a)

SIRIUS XM has an investment in SIRIUS XM Canada that was recorded at fair value, based on the market price per share (level 1), in the application of purchase accounting upon the acquisition of a controlling interest in SIRIUS XM on January 18, 2013.  See discussion below of SIRIUS XM Canada.

(b)

During September 2014, Liberty entered into a forward contract to acquire up to 15.9 million shares of Live Nation common stock. Prior to the contract’s original expiration during March 2015, the Company extended the contract through October 15, 2015 with expiration occurring on the sixtieth day following the completion of the counterparty’s initial hedge, which was November 27, 2015 and settlement occurring on December 2, 2015. The counterparty acquired the maximum number of Live Nation shares of common stock during September 2015. Liberty settled the contract for $396 million paid to the counterparty. During the year ended December 31, 2014, Liberty acquired an additional 1.7 million shares of Live Nation for approximately $39 million. During the year ended December 31, 2013, Liberty acquired an additional 1.7 million shares of Live Nation for approximately $19 million.

(c)

Shares of Live Nation, which are held by the Liberty Media Group, are pledged as collateral pursuant to a margin loan agreement, which is held by the Liberty SiriusXM Group, as of December 31, 2015. See note 4 below for details regarding the number and fair value of shares pledged as collateral pursuant to this  margin loan agreement as of December 31, 2015.

 

SIRIUS XM Canada

In the acquisition of SIRIUS XM, Liberty acquired an interest in SIRIUS XM Canada which SIRIUS XM accounts for as an equity method affiliate. Liberty recognized the investment at fair value, based on the market price per share (level 1), on the date of acquisition.

 

SIRIUS XM has entered into agreements to provide SIRIUS XM Canada with the right to offer SIRIUS XM satellite radio service in Canada. The various license and service agreements with SIRIUS XM Canada will expire in 2017 and 2020. SIRIUS XM receives a percentage-based royalty of 10% and 15% for certain types of subscriber fees earned by SIRIUS XM Canada for the distribution of Sirius and XM platforms,

15

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

respectively, royalties for activation fees and premium services and reimbursement for other charges. SIRIUS XM recognizes these payments on a gross basis as a principal obligor. The estimated fair value of deferred revenue from SIRIUS XM Canada as of the acquisition date was approximately $21 million, which is amortized on a straight-line basis through 2020, the end of the expected term of the agreements. SIRIUS XM provides programming and chipsets as well other services and SIRIUS XM Canada reimburses SIRIUS XM for such costs. At December 31, 2015, SIRIUS XM has approximately $6 million and $14 million in related party assets and liabilities, respectively, related to these agreements described above with SIRIUS XM Canada which are recorded in other assets and other liabilities, respectively, in the consolidated balance sheet. At December 31, 2014, SIRIUS XM had approximately $7 million and $18 million in related party assets and liabilities, respectively, related to these agreements described above with SIRIUS XM Canada which are recorded in other assets and other liabilities, respectively, in the consolidated balance sheet. Additionally, SIRIUS XM recorded approximately $56 million, $50 million and $49 million in revenue for the years ended December 31, 2015, 2014 and 2013, respectively, associated with these various agreements in the other revenue line in the consolidated statements of operations. SIRIUS XM Canada declared and paid dividends to SIRIUS XM of $16 million, $43 million and $17 million during the years ended December 31, 2015, 2014 and 2013, respectively.

 

16

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

 

(4)

Debt attributed to the Liberty SiriusXM Group, Liberty Braves Group and Liberty Media Group is comprised of the following:

 

 

 

 

 

 

 

 

 

 

 

Outstanding

 

Carrying value

 

 

    

Principal

    

December 31,

    

December 31,

 

 

 

December 31, 2015

 

 2015

 

 2014

 

 

 

amounts in millions

 

Liberty SiriusXM Group

 

 

 

 

 

 

 

 

Corporate level notes and loans:

 

 

 

 

 

 

 

 

Margin loans

 

$

250

 

250

 

250

 

Subsidiary notes and loans:

 

 

 

 

 

 

 

 

SIRIUS XM 5.875% Senior Notes due 2020

 

 

650

 

645

 

644

 

SIRIUS XM 5.75% Senior Notes due 2021

 

 

600

 

596

 

595

 

SIRIUS XM 5.25% Senior Secured Notes due 2022

 

 

400

 

406

 

407

 

SIRIUS XM 4.25% Senior Notes due 2020

 

 

500

 

496

 

496

 

SIRIUS XM 4.625% Senior Notes due 2023

 

 

500

 

496

 

495

 

SIRIUS XM 6% Senior Notes due 2024

 

 

1,500

 

1,485

 

1,484

 

SIRIUS XM 5.375% Senior Notes due 2025

 

 

1,000

 

989

 

 —

 

SIRIUS XM Credit Facility

 

 

340

 

340

 

380

 

SIRIUS XM leases

 

 

13

 

13

 

11

 

Less deferred financing costs

 

 

NA

 

(7)

 

(6)

 

Total Liberty SiriusXM Group

 

 

5,753

 

5,709

 

4,756

 

Liberty Braves Group

 

 

 

 

 

 

 

 

Notes and loans

 

 

147

 

147

 

100

 

Less deferred financing costs

 

 

NA

 

(8)

 

(1)

 

Total Liberty Braves Group

 

 

147

 

139

 

99

 

Liberty Media Group

 

 

 

 

 

 

 

 

Corporate level notes and loans:

 

 

 

 

 

 

 

 

Liberty 1.375% Cash Convertible Notes due 2023

 

 

1,000

 

995

 

990

 

Notes and loans

 

 

38

 

38

 

 —

 

Total Liberty Media Group

 

 

1,038

 

1,033

 

990

 

Total debt

 

$

6,938

 

6,881

 

5,845

 

Less debt classified as current

 

 

 

 

(255)

 

(257)

 

Total long-term debt

 

 

 

 

6,626

 

5,588

 

Margin Loans

During the year ended December 31, 2013, in connection with Liberty's acquisition of Charter Communications, Inc. (“Charter”) common stock and warrants, Liberty, through certain of its wholly-owned subsidiaries, entered into three different margin loans with various financial institutions (“lender parties”) in order to fund the purchase. Each agreement contains language that indicates that Liberty, as borrower and transferor of underlying shares as collateral, has the right to exercise all voting, consensual and other powers of ownership pertaining to the transferred shares for all purposes, provided that Liberty agrees that it will not vote the shares in any manner that would reasonably be expected to give rise to transfer or other certain restrictions. Similarly, the loan agreements indicate that no lender party shall have any voting rights with respect to the shares transferred, except to the extent that a lender party buys any shares in a sale or other disposition made pursuant to the terms of the loan agreements. The margin loans consist of the following:

 

17

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

$670 Million Margin Loan due 2015

At closing on May 1, 2013, LMC Cheetah 2, LLC, a wholly owned subsidiary of Liberty, entered into a margin loan agreement with an availability of $670 million pursuant to a term loan with various lender parties ("$670 Million Margin Loan due 2015"). Shares of Charter common stock were pledged as collateral pursuant to this agreement. The $670 Million Margin Loan was due May 1, 2015. As of December 31, 2013, Liberty had fully drawn the $670 Million Margin Loan due 2015. During the year ended December 31, 2014, Liberty fully repaid the $670 Million Margin Loan due 2015 and the shares previously pledged under the loan are no longer pledged as collateral.

 

$1.25 Billion Margin Loan due 2016

On April 30, 2013, Liberty Siri MarginCo, LLC, a wholly owned subsidiary of Liberty, entered into a margin loan agreement whereby Liberty Siri MarginCo, LLC borrowed $250 million pursuant to a term loan and $450 million pursuant to a revolving credit facility with various lender parties. Shares of common stock of certain of the Company’s equity affiliates and cost investments were pledged as collateral pursuant to this agreement. Borrowings under this agreement were due October 31, 2014. During 2013, Liberty Siri MarginCo, LLC repaid $450 million outstanding under the revolving credit facility.

 

During October 2014, Liberty refinanced this margin loan arrangement for a similar financial instrument with a term loan of $250 million and a $750 million undrawn line of credit. As of December 31, 2014, shares of SIRIUS XM, Live Nation, Time Warner, Inc. and Viacom, Inc. common stock were pledged as collateral pursuant to this agreement.  As of December 31, 2014, availability under the revolving line of credit was $750 million. The maturity of the new arrangement was October 28, 2015. 

 

Prior to the maturity of the margin loan in October 2015, Liberty refinanced this margin loan arrangement for a similar financial instrument with a term loan of $250 million and a $1 billion undrawn line of credit, which is now scheduled to mature on October 25, 2016. In connection with the amendment, 4.6 million shares of SIRIUS XM, 7.8 million shares Live Nation, and all shares of Time Warner, Inc. were released as collateral to this agreement.  Additionally, due to the sale of shares of Viacom, Inc. held by Liberty during 2015 (note 2), shares of Viacom, Inc. are no longer pledged as collateral pursuant to this agreement.

 

As of December 31, 2015, availability under the revolving line of credit was $1 billion.

 

As of December 31, 2015, the value of shares pledged as collateral pursuant to the $1.25 billion margin loan due 2016 is as follows:

 

 

 

 

 

 

 

 

 

    

Number of Shares Pledged

    

    

 

 

 

 

as Collateral as of

 

Share value as of

 

Investment

    

December 31, 2015

    

December 31, 2015

 

 

 

amounts in millions

 

Liberty SiriusXM Group

 

 

 

 

 

 

SIRIUS XM

 

145.4

 

$

592

 

Liberty Media Group

 

 

 

 

 

 

Live Nation

 

4.2

 

$

104

 

 

Braves Holdings Notes

In 2014, Braves Holdings, through a wholly-owned subsidiary, purchased 82 acres of land for the purpose of constructing a Major League Baseball facility and development of a mixed-use complex adjacent to the ballpark. The new facility is expected to cost approximately $672 million and Braves Holdings expects to spend approximately $50 million in other costs and equipment related to the new ballpark. Funding for the ballpark will be split between Braves Holdings, Cobb County, the Cumberland Improvement District (“CID”) and Cobb-Marietta Coliseum and Exhibit Hall Authority. Cobb-Marietta Coliseum and Exhibit Hall

18

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

Authority, the CID and Cobb County will be responsible for funding $392 million of ballpark related construction and Braves Holdings will be responsible for remainder of the cost, including cost overruns. Cobb-Marietta Coliseum and Exhibit Hall Authority issued $368 million in bonds during September 2015. Braves Holdings received $103 million of the bond proceeds during September 2015 as reimbursement for project costs paid for by Braves Holdings prior to the funding of the bonds. Funding for ballpark initiatives by Braves Holdings has come from cash reserves and utilization of two credit facilities. Additionally, during September 2015, Braves Holdings entered into a $345 million term loan (the “Braves Term Loan”) which is scheduled to mature during September 2020. In connection with entering into the Braves Term Loan, Braves Holdings partially repaid and reduced the capacity on one of the credit facilities from $150 million to $75 million for a total capacity under the credit facilities of $175 million. As of December 31, 2015, Braves Holdings has borrowed approximately $147 million under the Braves Term Loan and two credit facilities.

 

Due to Braves Holdings providing the initial funding of the project and its ownership of the land during the initial construction period, until the initial reimbursement by the Authority during September 2015 at which time the land was conveyed to the Authority, Braves Holdings has been deemed the owner (for accounting purposes) of the stadium during the construction period and costs have been classified as construction in progress (“CIP”), within the Property and equipment, net line item. Future costs of the project will continue to be captured in CIP along with a corresponding liability in other liabilities, for amounts funded by the Authority. At the end of construction an additional determination will be made to determine whether the transaction will qualify for sale-leaseback accounting treatment.

 

In addition, Braves Holdings through affiliated entities and outside development partners are in the process of developing land around the ballpark for a mixed-use complex that is expected to feature retail, residential, office, hotel and entertainment opportunities. The estimated cost for mixed-use development is $558 million, of which Braves Holdings affiliated entities are expected to fund approximately $490 million, which Braves Holdings intends to fund with a mix of approximately $200 million in equity and $290 million in new debt. In December 2015, certain subsidiaries of Braves Holdings entered into three separate credit facilities totaling $207 million to fund a portion of the mixed use development costs. All of the facilities were undrawn as of December 31, 2015.  The maturity dates of the facilities range between December 2018 and December 2019, and all of the facilities contain two year extension options.  As discussed in note 2, 464 thousand Time Warner, Inc. shares were pledged as collateral to these facilities. The fair value of the shares pledged as of December 31, 2015 was $30 million.     

 

As of December 31, 2015, approximately $358 million has been spent to-date on the baseball facility and mixed-use development, of which approximately $190 million of funding has been provided by the Authority.

 

(5)

Cash compensation expense for our corporate employees will be allocated among the Liberty SiriusXM Group, Liberty Braves Group and the Liberty Media Group based on the estimated percentage of time spent providing services for each group. On an annual basis estimated time spent will be determined through an interview process and a review of personnel duties unless transactions significantly change the composition of companies and investments in either respective group which would require a timelier reevaluation of estimated time spent. Other general and administrative expenses are charged directly to the groups whenever possible and are otherwise allocated based on estimated usage or some other reasonably determined methodology. We note that stock compensation related to each tracking stock in the future will be calculated based on actual awards outstanding following the completion of the recapitalization and distribution.

 

While we believe that this allocation method is reasonable and fair to each group, we may elect to change the allocation methodology or percentages used to allocate general and administrative expenses in the future.

 

(6)

We have accounted for income taxes for the Liberty SiriusXM Group, Liberty Braves Group and the Liberty Media Group in the accompanying attributed financial information in a manner similar to a stand-alone company basis. To the extent this methodology differs from our tax sharing policy, differences have been reflected in the attributed net assets of the groups.

 

19

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

Liberty SiriusXM Group

 

Income tax benefit (expense) consists of:

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

    

2015

    

2014

    

2013

 

 

 

amounts in millions

 

Current:

 

 

 

 

 

 

 

 

Federal

 

$

(13)

 

(31)

 

(25)

 

State and local

 

 

(18)

 

(12)

 

(9)

 

Foreign

 

 

(1)

 

 —

 

5

 

 

 

 

(32)

 

(43)

 

(29)

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

 

(252)

 

(264)

 

178

 

State and local

 

 

(38)

 

(20)

 

5

 

Foreign

 

 

 

 

 

 

 

 

(290)

 

(284)

 

183

 

Income tax benefit (expense)

 

$

(322)

 

(327)

 

154

 

 

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

    

2015

    

2014

    

2013

 

 

 

amounts in millions

 

Computed expected tax benefit (expense)

 

$

(268)

 

(271)

 

(2,887)

 

Non-taxable gain on book consolidation of SIRIUS XM

 

 

 —

 

 —

 

3,054

 

Dividends received deductions

 

 

 —

 

95

 

36

 

Sale of subsidiary shares to subsidiary treated as a dividend for tax

 

 

 —

 

(123)

 

(56)

 

State and local income taxes, net of federal income taxes

 

 

(6)

 

(33)

 

3

 

Change in valuation allowance affecting tax expense

 

 

(44)

 

3

 

4

 

Other, net

 

 

(4)

 

2

 

 —

 

Income tax benefit (expense)

 

$

(322)

 

(327)

 

154

 

 

20

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2015

    

2014

 

 

 

amounts in millions

 

Deferred tax assets:

 

 

 

 

 

 

Net operating and capital loss carryforwards

 

$

1,759

 

2,111

 

Accrued stock compensation

 

 

102

 

96

 

Other accrued liabilities

 

 

45

 

57

 

Deferred revenue

 

 

729

 

678

 

Other future deductible amounts

 

 

 —

 

12

 

Deferred tax assets

 

 

2,635

 

2,954

 

Valuation allowance

 

 

(49)

 

(5)

 

Net deferred tax assets

 

 

2,586

 

2,949

 

Deferred tax liabilities:

 

 

 

 

 

 

Investments

 

 

11

 

89

 

Discount on debt

 

 

9

 

 —

 

Intangible assets

 

 

3,880

 

3,910

 

Other

 

 

308

 

294

 

Deferred tax liabilities

 

 

4,208

 

4,293

 

Net deferred tax liabilities

 

$

1,622

 

1,344

 

 

Liberty Braves Group

 

Income tax benefit (expense) consists of:

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

    

2015

    

2014

    

2013

 

 

 

amounts in millions

 

Current:

 

 

 

 

 

 

 

 

Federal

 

$

4

 

5

 

(15)

 

State and local

 

 

 —

 

1

 

(1)

 

Foreign

 

 

 —

 

 —

 

 —

 

 

 

 

4

 

6

 

(16)

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

 

5

 

6

 

9

 

State and local

 

 

1

 

1

 

2

 

Foreign

 

 

 

 

 

 

 

 

6

 

7

 

11

 

Income tax benefit (expense)

 

$

10

 

13

 

(5)

 

 

21

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

    

2015

    

2014

    

2013

 

 

 

amounts in millions

 

Computed expected tax benefit (expense)

 

$

11

 

13

 

(4)

 

State and local income taxes, net of federal income taxes

 

 

1

 

1

 

(1)

 

Change in valuation allowance affecting tax expense

 

 

 —

 

 —

 

1

 

Other, net

 

 

(2)

 

(1)

 

(1)

 

Income tax benefit (expense)

 

$

10

 

13

 

(5)

 

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2015

    

2014

 

 

 

amounts in millions

 

Deferred tax assets:

 

 

 

 

 

 

Other accrued liabilities

 

$

14

 

18

 

Other future deductible amounts

 

 

15

 

10

 

Deferred tax assets

 

 

29

 

28

 

Valuation allowance

 

 

 —

 

 —

 

Net deferred tax assets

 

 

29

 

28

 

Deferred tax liabilities:

 

 

 

 

 

 

Investments

 

 

1

 

 —

 

Intangible assets

 

 

77

 

83

 

Deferred tax liabilities

 

 

78

 

83

 

Net deferred tax liabilities

 

$

49

 

55

 

 

Liberty Media Group

 

Income tax benefit (expense) consists of:

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

    

2015

    

2014

    

2013

 

 

 

amounts in millions

 

Current:

 

 

 

 

 

 

 

 

Federal

 

$

(8)

 

44

 

(5)

 

State and local

 

 

1

 

18

 

13

 

Foreign

 

 

 —

 

 —

 

 —

 

 

 

 

(7)

 

62

 

8

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

 

102

 

155

 

(22)

 

State and local

 

 

7

 

31

 

 —

 

Foreign

 

 

 —

 

 —

 

 —

 

 

 

 

109

 

186

 

(22)

 

Income tax benefit (expense)

 

$

102

 

248

 

(14)

 

22

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

 

Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following:

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

    

2015

    

2014

    

2013

 

 

 

amounts in millions

 

Computed expected tax benefit (expense)

 

$

97

 

97

 

(209)

 

Liquidation of consolidated subsidiaries

 

 

 —

 

107

 

 

Non-taxable exchange of subsidiary

 

 

 —

 

 —

 

174

 

Dividends received deductions

 

 

2

 

4

 

10

 

State and local income taxes, net of federal income taxes

 

 

4

 

28

 

9

 

Change in valuation allowance affecting tax expense

 

 

 —

 

(5)

 

4

 

Recognition of tax benefits not previously recognized, net

 

 

 —

 

11

 

 

Other, net

 

 

(1)

 

6

 

(2)

 

Income tax benefit (expense)

 

$

102

 

248

 

(14)

 

 

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below:

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2015

    

2014

 

 

 

amounts in millions

 

Deferred tax assets:

 

 

 

 

 

 

Net operating and capital loss carryforwards

 

$

36

 

8

 

Accrued stock compensation

 

 

38

 

31

 

Other accrued liabilities

 

 

17

 

13

 

Other future deductible amounts

 

 

 —

 

3

 

Deferred tax assets

 

 

91

 

55

 

Valuation allowance

 

 

 —

 

 —

 

Net deferred tax assets

 

 

91

 

55

 

Deferred tax liabilities:

 

 

 

 

 

 

Investments

 

 

55

 

140

 

Discount on debt

 

 

21

 

 —

 

Other

 

 

11

 

23

 

Deferred tax liabilities

 

 

87

 

163

 

Net deferred tax (assets) liabilities

 

$

(4)

 

108

 

 

Intergroup payable (receivable)

 

Except for the Intergroup Note between the Liberty Braves Group and the Liberty Media Group as discussed in note 1, the intergroup balance at December 31, 2015 and 2014 is primarily a result of timing of tax benefits.

 

(7)

The Liberty SiriusXM common stock, Liberty Braves common stock and Liberty Media common stock will have voting and conversion rights under our restated charter. Following is a summary of those rights. Holders of Series A common stock of each group will be entitled to one vote per share, and holders of Series B common stock of each group will be entitled to ten votes per share. Holders of Series C common stock of each group will be entitled to 1/100th of a vote per share in certain limited cases and will otherwise not be entitled to vote. In general, holders of Series A and Series B common stock will vote as a single class. In certain limited circumstances, the board may elect to seek the approval of the holders of only Series A and

23

 


 

Notes to Attributed Financial Information (Continued)

(unaudited)

 

 

Series B Liberty Sirius stock, Series A and Series B Liberty Braves stock, or the approval of the holders of only Series A and Series B Liberty Media stock.

 

At the option of the holder, each share of Series B common stock of each group will be convertible into one share of Series A common stock of the same group. At the discretion of our board, the common stock related to one group may be converted into common stock of the same series that is related to another other group.

 

24