Liberty Media Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Financial Information for Tracking Stock Groups (Tables)

Financial Information for Tracking Stock Groups (Tables)

6 Months Ended

Jun. 30, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

BALANCE SHEET INFORMATION

June 30, 2018


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Inter-Group	Consolidated
	Group		Group	Group	Eliminations	Liberty
	amounts in millions
Assets
Current assets:
Cash and cash equivalents	$	174	113	198	—	485
Trade and other receivables, net		247	67	114	—	428
Other current assets		170	89	155	—	414
Total current assets		591	269	467	—	1,327
Intergroup interest in the Liberty Braves Group (note 1)		—	—	235	(235)	—
Investments in debt and equity securities (note 1)		1,103	8	318	—	1,429
Investments in affiliates, accounted for using the equity method (note 1)		642	97	920	—	1,659

Property and equipment, at cost		2,341	1,234	180	—	3,755
Accumulated depreciation		(1,019)	(78)	(86)	—	(1,183)
		1,322	1,156	94	—	2,572

Intangible assets not subject to amortization
Goodwill		14,247	180	3,956	—	18,383
FCC licenses		8,600	—	—	—	8,600
Other		931	143	—	—	1,074
		23,778	323	3,956	—	28,057
Intangible assets subject to amortization, net		957	42	4,953	—	5,952
Other assets		121	44	646	—	811
Total assets	$	28,514	1,939	11,589	(235)	41,807

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 3)	$	—	(39)	39	—	—
Accounts payable and accrued liabilities		997	56	176	—	1,229
Current portion of debt (note 1)		4	14	—	—	18
Deferred revenue		1,935	97	355	—	2,387
Other current liabilities		4	8	9	—	21
Total current liabilities		2,940	136	579	—	3,655
Long-term debt (note 1)		7,288	611	5,353	—	13,252
Deferred income tax liabilities		1,569	68	(86)	—	1,551
Redeemable intergroup interest (note 1)		—	235	—	(235)	—
Other liabilities		283	508	93	—	884
Total liabilities		12,080	1,558	5,939	(235)	19,342
Equity / Attributed net assets		10,864	376	5,648	—	16,888
Noncontrolling interests in equity of subsidiaries		5,570	5	2	—	5,577
Total liabilities and equity	$	28,514	1,939	11,589	(235)	41,807

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2018


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	1,139	—	—	1,139
Formula 1 revenue		—	—	585	585
Other revenue		293	182	—	475
Total revenue		1,432	182	585	2,199
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		404	—	—	404
Programming and content		105	—	—	105
Customer service and billing		95	—	—	95
Other		33	—	—	33
Cost of Formula 1 revenue		—	—	414	414
Subscriber acquisition costs		119	—	—	119
Other operating expenses		27	94	—	121
Selling, general and administrative		224	30	49	303
Depreciation and amortization		92	23	116	231
		1,099	147	579	1,825
Operating income (loss)		333	35	6	374
Other income (expense):
Interest expense		(99)	(7)	(47)	(153)
Share of earnings (losses) of affiliates, net		(1)	3	20	22
Realized and unrealized gains (losses) on financial instruments, net		62	—	(4)	58
Unrealized gains (losses) on intergroup interest (note 1)		—	(28)	28	—
Other, net		12	1	8	21
		(26)	(31)	5	(52)
Earnings (loss) before income taxes		307	4	11	322
Income tax (expense) benefit		(59)	(7)	(1)	(67)
Net earnings (loss)		248	(3)	10	255
Less net earnings (loss) attributable to the noncontrolling interests		83	(1)	1	83
Net earnings (loss) attributable to Liberty stockholders	$	165	(2)	9	172

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2017


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	1,111	—	—	1,111
Formula 1 revenue		—	—	616	616
Other revenue		237	176	—	413
Total revenue		1,348	176	616	2,140
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		293	—	—	293
Programming and content		96	—	—	96
Customer service and billing		95	—	—	95
Other		30	—	—	30
Cost of Formula 1 revenue		—	—	414	414
Subscriber acquisition costs		126	—	—	126
Other operating expenses		27	126	—	153
Selling, general and administrative		202	29	57	288
Depreciation and amortization		87	24	112	223
		956	179	583	1,718
Operating income (loss)		392	(3)	33	422
Other income (expense):
Interest expense		(85)	(2)	(62)	(149)
Share of earnings (losses) of affiliates, net		(5)	1	20	16
Realized and unrealized gains (losses) on financial instruments, net		—	—	(49)	(49)
Unrealized gains (losses) on intergroup interest (note 1)		—	(3)	3	—
Other, net		(7)	2	1	(4)
		(97)	(2)	(87)	(186)
Earnings (loss) before income taxes		295	(5)	(54)	236
Income tax (expense) benefit		(110)	3	27	(80)
Net earnings (loss)		185	(2)	(27)	156
Less net earnings (loss) attributable to the noncontrolling interests		62	—	—	62
Net earnings (loss) attributable to Liberty stockholders	$	123	(2)	(27)	94

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2018


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	2,256	—	—	2,256
Formula 1 revenue		—	—	699	699
Other revenue		551	210	—	761
Total revenue		2,807	210	699	3,716
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		714	—	—	714
Programming and content		206	—	—	206
Customer service and billing		189	—	—	189
Other		62	—	—	62
Cost of Formula 1 revenue		—	—	495	495
Subscriber acquisition costs		242	—	—	242
Other operating expenses		58	134	—	192
Selling, general and administrative		426	53	89	568
Depreciation and amortization		181	39	227	447
		2,078	226	811	3,115
Operating income (loss)		729	(16)	(112)	601
Other income (expense):
Interest expense		(196)	(13)	(94)	(303)
Share of earnings (losses) of affiliates, net		—	6	8	14
Realized and unrealized gains (losses) on financial instruments, net		120	—	91	211
Unrealized gains (losses) on intergroup interest (note 1)		—	(33)	33	—
Other, net		17	2	8	27
		(59)	(38)	46	(51)
Earnings (loss) before income taxes		670	(54)	(66)	550
Income tax (expense) benefit		(140)	(1)	59	(82)
Net earnings (loss)		530	(55)	(7)	468
Less net earnings (loss) attributable to the noncontrolling interests		165	(1)	1	165
Net earnings (loss) attributable to Liberty stockholders	$	365	(54)	(8)	303

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2017


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	2,189	—	—	2,189
Formula 1 revenue		—	—	712	712
Other revenue		453	181	—	634
Total revenue		2,642	181	712	3,535
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		570	—	—	570
Programming and content		192	—	—	192
Customer service and billing		192	—	—	192
Other		57	—	—	57
Cost of Formula 1 revenue		—	—	482	482
Subscriber acquisition costs		253	—	—	253
Other operating expenses		51	143	—	194
Selling, general and administrative		386	48	93	527
Depreciation and amortization		177	26	184	387
		1,878	217	759	2,854
Operating income (loss)		764	(36)	(47)	681
Other income (expense):
Interest expense		(169)	(2)	(118)	(289)
Share of earnings (losses) of affiliates, net		(2)	4	10	12
Realized and unrealized gains (losses) on financial instruments, net		—	—	(61)	(61)
Unrealized gains (losses) on intergroup interest (note 1)		—	(31)	31	—
Other, net		(1)	5	9	13
		(172)	(24)	(129)	(325)
Earnings (loss) before income taxes		592	(60)	(176)	356
Income tax (expense) benefit		(218)	9	53	(156)
Net earnings (loss)		374	(51)	(123)	200
Less net earnings (loss) attributable to the noncontrolling interests		127	—	—	127
Net earnings (loss) attributable to Liberty stockholders	$	247	(51)	(123)	73

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 30, 2018


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	530	(55)	(7)	468
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		181	39	227	447
Stock-based compensation		82	5	12	99
Share of (earnings) loss of affiliates, net		—	(6)	(8)	(14)
Unrealized (gains) losses on intergroup interest, net		—	33	(33)	—
Realized and unrealized (gains) losses on financial instruments, net		(120)	—	(91)	(211)
Noncash interest expense (benefit)		(8)	2	—	(6)
Deferred income tax expense (benefit)		123	(2)	(49)	72
Intergroup tax allocation		1	3	(4)	—
Other charges (credits), net		—	14	2	16
Changes in operating assets and liabilities
Current and other assets		1	(3)	(97)	(99)
Payables and other liabilities		163	37	296	496
Net cash provided (used) by operating activities		953	67	248	1,268
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(395)	—	(4)	(399)
Cash proceeds from sale of investments		—	—	243	243
Capital expended for property and equipment		(174)	(14)	(3)	(191)
Other investing activities, net		3	36	8	47
Net cash provided (used) by investing activities		(566)	22	244	(300)
Cash flows from financing activities:
Borrowings of debt		1,171	123	289	1,583
Repayments of debt		(1,388)	(180)	(850)	(2,418)
Series C Liberty SiriusXM stock repurchases		(218)	—	—	(218)
Subsidiary shares repurchased by subsidiary		(334)	—	—	(334)
Cash dividends paid by subsidiary		(29)	—	—	(29)
Taxes paid in lieu of shares issued for stock-based compensation		(79)	—	(2)	(81)
Other financing activities, net		50	—	(4)	46
Net cash provided (used) by financing activities		(827)	(57)	(567)	(1,451)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		—	—	(1)	(1)
Net increase (decrease) in cash, cash equivalents and restricted cash		(440)	32	(76)	(484)
Cash, cash equivalents and restricted cash at beginning of period		625	140	282	1,047
Cash, cash equivalents and restricted cash at end of period	$	185	172	206	563

STATEMENT OF CASH FLOWS INFORMATION

June 30, 2017


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	374	(51)	(123)	200
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		177	26	184	387
Stock-based compensation		71	8	18	97
Share of (earnings) loss of affiliates, net		2	(4)	(10)	(12)
Unrealized (gains) losses on intergroup interest, net		—	31	(31)	—
Realized and unrealized (gains) losses on financial instruments, net		—	—	61	61
Noncash interest expense (benefit)		3	1	2	6
Deferred income tax expense (benefit)		215	23	(62)	176
Intergroup tax allocation		(9)	(33)	42	—
Intergroup tax payments		4	15	(19)	—
Other charges (credits), net		2	(3)	(3)	(4)
Changes in operating assets and liabilities
Current and other assets		(15)	(51)	29	(37)
Payables and other liabilities		(39)	24	(120)	(135)
Net cash provided (used) by operating activities		785	(14)	(32)	739
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(434)	(2)	(6)	(442)
Cash proceeds from sale of investments		—	5	1	6
Net cash paid for the acquisition of Formula 1		—	—	(1,647)	(1,647)
Capital expended for property and equipment		(119)	(145)	(2)	(266)
Other investing activities, net		(114)	5	(10)	(119)
Net cash provided (used) by investing activities		(667)	(137)	(1,664)	(2,468)
Cash flows from financing activities:
Borrowings of debt		980	214	1,403	2,597
Repayments of debt		(376)	(42)	(1,373)	(1,791)
Proceeds from issuance of Series C Liberty Formula One common stock		—	—	1,938	1,938
Subsidiary shares repurchased by subsidiary		(784)	—	—	(784)
Cash dividends paid by subsidiary		(30)	—	—	(30)
Taxes paid in lieu of shares issued for stock-based compensation		(29)	—	(3)	(32)
Other financing activities, net		7	—	1	8
Net cash provided (used) by financing activities		(232)	172	1,966	1,906
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		—	—	5	5
Net increase (decrease) in cash, cash equivalents and restricted cash		(114)	21	275	182
Cash, cash equivalents and restricted cash at beginning of period		297	107	168	572
Cash, cash equivalents and restricted cash at end of period	$	183	128	443	754