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)

9 Months Ended

Sep. 30, 2018

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheet

BALANCE SHEET INFORMATION

September 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	$	126	78	151	—	355
Trade and other receivables, net		246	41	153	—	440
Other current assets		202	140	104	—	446
Total current assets		574	259	408	—	1,241
Intergroup interest in the Liberty Braves Group (note 1)		—	—	248	(248)	—
Investments in debt and equity securities (note 1)		1,050	8	348	—	1,406
Investments in affiliates, accounted for using the equity method (note 1)		661	97	972	—	1,730

Property and equipment, at cost		2,404	1,238	179	—	3,821
Accumulated depreciation		(1,065)	(93)	(87)	—	(1,245)
		1,339	1,145	92	—	2,576

Intangible assets not subject to amortization
Goodwill		14,250	180	3,956	—	18,386
FCC licenses		8,600	—	—	—	8,600
Other		931	143	—	—	1,074
		23,781	323	3,956	—	28,060
Intangible assets subject to amortization, net		947	38	4,845	—	5,830
Other assets		124	43	614	—	781
Total assets	$	28,476	1,913	11,483	(248)	41,624

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 3)	$	17	(56)	39	—	—
Accounts payable and accrued liabilities		842	31	224	—	1,097
Current portion of debt (note 1)		4	14	—	—	18
Deferred revenue		1,955	45	235	—	2,235
Other current liabilities		17	9	3	—	29
Total current liabilities		2,835	43	501	—	3,379
Long-term debt (note 1)		7,507	608	5,265	—	13,380
Deferred income tax liabilities		1,607	73	(70)	—	1,610
Redeemable intergroup interest (note 1)		—	248	—	(248)	—
Other liabilities		266	519	101	—	886
Total liabilities		12,215	1,491	5,797	(248)	19,255
Equity / Attributed net assets		10,759	417	5,684	—	16,860
Noncontrolling interests in equity of subsidiaries		5,502	5	2	—	5,509
Total liabilities and equity	$	28,476	1,913	11,483	(248)	41,624

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2018


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	1,163	—	—	1,163
Formula 1 revenue		—	—	647	647
Other revenue		305	200	—	505
Total revenue		1,468	200	647	2,315
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		343	—	—	343
Programming and content		97	—	—	97
Customer service and billing		95	—	—	95
Other		30	—	—	30
Cost of Formula 1 revenue		—	—	450	450
Subscriber acquisition costs		110	—	—	110
Other operating expenses		31	99	—	130
Selling, general and administrative		214	33	48	295
Depreciation and amortization		93	23	118	234
		1,013	155	616	1,784
Operating income (loss)		455	45	31	531
Other income (expense):
Interest expense		(95)	(6)	(49)	(150)
Share of earnings (losses) of affiliates, net		(2)	2	58	58
Realized and unrealized gains (losses) on financial instruments, net		(51)	1	19	(31)
Unrealized gains (losses) on intergroup interest (note 1)		—	(13)	13	—
Other, net		6	—	4	10
		(142)	(16)	45	(113)
Earnings (loss) before income taxes		313	29	76	418
Income tax (expense) benefit		(30)	12	(34)	(52)
Net earnings (loss)		283	41	42	366
Less net earnings (loss) attributable to the noncontrolling interests		98	—	—	98
Net earnings (loss) attributable to Liberty stockholders	$	185	41	42	268

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2017


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	1,136	—	—	1,136
Formula 1 revenue		—	—	501	501
Other revenue		243	185	—	428
Total revenue		1,379	185	501	2,065
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		297	—	—	297
Programming and content		98	—	—	98
Customer service and billing		95	—	—	95
Other		29	—	—	29
Cost of Formula 1 revenue		—	—	354	354
Subscriber acquisition costs		119	—	—	119
Other operating expenses		30	109	—	139
Selling, general and administrative		210	61	53	324
Depreciation and amortization		93	24	111	228
		971	194	518	1,683
Operating income (loss)		408	(9)	(17)	382
Other income (expense):
Interest expense		(95)	(7)	(57)	(159)
Share of earnings (losses) of affiliates, net		34	68	53	155
Realized and unrealized gains (losses) on financial instruments, net		62	—	(44)	18
Unrealized gains (losses) on intergroup interest (note 1)		—	(12)	12	—
Other, net		(19)	1	7	(11)
		(18)	50	(29)	3
Earnings (loss) before income taxes		390	41	(46)	385
Income tax (expense) benefit		(116)	(19)	11	(124)
Net earnings (loss)		274	22	(35)	261
Less net earnings (loss) attributable to the noncontrolling interests		91	—	2	93
Net earnings (loss) attributable to Liberty stockholders	$	183	22	(37)	168

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2018


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	3,419	—	—	3,419
Formula 1 revenue		—	—	1,346	1,346
Other revenue		856	410	—	1,266
Total revenue		4,275	410	1,346	6,031
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		1,057	—	—	1,057
Programming and content		303	—	—	303
Customer service and billing		284	—	—	284
Other		92	—	—	92
Cost of Formula 1 revenue		—	—	945	945
Subscriber acquisition costs		352	—	—	352
Other operating expenses		89	233	—	322
Selling, general and administrative		640	86	137	863
Depreciation and amortization		274	62	345	681
		3,091	381	1,427	4,899
Operating income (loss)		1,184	29	(81)	1,132
Other income (expense):
Interest expense		(291)	(19)	(143)	(453)
Share of earnings (losses) of affiliates, net		(2)	8	66	72
Realized and unrealized gains (losses) on financial instruments, net		69	1	110	180
Unrealized gains (losses) on intergroup interest (note 1)		—	(46)	46	—
Other, net		23	2	12	37
		(201)	(54)	91	(164)
Earnings (loss) before income taxes		983	(25)	10	968
Income tax (expense) benefit		(170)	11	25	(134)
Net earnings (loss)		813	(14)	35	834
Less net earnings (loss) attributable to the noncontrolling interests		263	(1)	1	263
Net earnings (loss) attributable to Liberty stockholders	$	550	(13)	34	571

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2017


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	3,325	—	—	3,325
Formula 1 revenue		—	—	1,213	1,213
Other revenue		696	366	—	1,062
Total revenue		4,021	366	1,213	5,600
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		867	—	—	867
Programming and content		290	—	—	290
Customer service and billing		287	—	—	287
Other		86	—	—	86
Cost of Formula 1 revenue		—	—	836	836
Subscriber acquisition costs		372	—	—	372
Other operating expenses		81	252	—	333
Selling, general and administrative		596	109	146	851
Depreciation and amortization		270	50	295	615
		2,849	411	1,277	4,537
Operating income (loss)		1,172	(45)	(64)	1,063
Other income (expense):
Interest expense		(264)	(9)	(175)	(448)
Share of earnings (losses) of affiliates, net		32	72	63	167
Realized and unrealized gains (losses) on financial instruments, net		62	—	(105)	(43)
Unrealized gains (losses) on intergroup interest (note 1)		—	(43)	43	—
Other, net		(20)	6	16	2
		(190)	26	(158)	(322)
Earnings (loss) before income taxes		982	(19)	(222)	741
Income tax (expense) benefit		(334)	(10)	64	(280)
Net earnings (loss)		648	(29)	(158)	461
Less net earnings (loss) attributable to the noncontrolling interests		218	—	2	220
Net earnings (loss) attributable to Liberty stockholders	$	430	(29)	(160)	241

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 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)	$	813	(14)	35	834
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		274	62	345	681
Stock-based compensation		117	9	19	145
Share of (earnings) loss of affiliates, net		2	(8)	(66)	(72)
Unrealized (gains) losses on intergroup interest, net		—	46	(46)	—
Realized and unrealized (gains) losses on financial instruments, net		(69)	(1)	(110)	(180)
Noncash interest expense (benefit)		(9)	4	(1)	(6)
Deferred income tax expense (benefit)		159	3	(30)	132
Intergroup tax allocation		21	(14)	(7)	—
Other charges (credits), net		2	9	2	13
Changes in operating assets and liabilities
Current and other assets		(33)	(3)	(83)	(119)
Payables and other liabilities		14	(30)	223	207
Net cash provided (used) by operating activities		1,291	63	281	1,635
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(397)	—	(6)	(403)
Cash proceeds from sale of investments		—	—	244	244
Capital expended for property and equipment		(239)	(15)	(11)	(265)
Other investing activities, net		4	33	5	42
Net cash provided (used) by investing activities		(632)	18	232	(382)
Cash flows from financing activities:
Borrowings of debt		1,899	123	288	2,310
Repayments of debt		(1,902)	(185)	(927)	(3,014)
Series C Liberty SiriusXM stock repurchases		(368)	—	—	(368)
Subsidiary shares repurchased by subsidiary		(662)	—	—	(662)
Cash dividends paid by subsidiary		(44)	—	—	(44)
Taxes paid in lieu of shares issued for stock-based compensation		(120)	—	(2)	(122)
Other financing activities, net		50	—	1	51
Net cash provided (used) by financing activities		(1,147)	(62)	(640)	(1,849)
Net increase (decrease) in cash, cash equivalents and restricted cash		(488)	19	(127)	(596)
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	$	137	159	155	451

STATEMENT OF CASH FLOWS INFORMATION

September 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)	$	648	(29)	(158)	461
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		270	50	295	615
Stock-based compensation		113	41	28	182
Share of (earnings) loss of affiliates, net		(32)	(72)	(63)	(167)
Unrealized (gains) losses on intergroup interest, net		—	43	(43)	—
Realized and unrealized (gains) losses on financial instruments, net		(62)	—	105	43
Noncash interest expense (benefit)		4	1	4	9
Deferred income tax expense (benefit)		321	28	(63)	286
Intergroup tax allocation		(11)	(18)	29	—
Intergroup tax payments		4	15	(19)	—
Other charges (credits), net		36	—	6	42
Changes in operating assets and liabilities
Current and other assets		19	(41)	28	6
Payables and other liabilities		1	(59)	(105)	(163)
Net cash provided (used) by operating activities		1,311	(41)	44	1,314
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(750)	(2)	(8)	(760)
Cash proceeds from sale of investments		—	5	15	20
Net cash paid for the acquisition of Formula 1		—	—	(1,647)	(1,647)
Capital expended for property and equipment		(207)	(190)	(10)	(407)
Other investing activities, net		(115)	4	(9)	(120)
Net cash provided (used) by investing activities		(1,072)	(183)	(1,659)	(2,914)
Cash flows from financing activities:
Borrowings of debt		3,933	288	1,599	5,820
Repayments of debt		(3,103)	(42)	(1,674)	(4,819)
Proceeds from issuance of Series C Liberty Formula One common stock		—	—	1,938	1,938
Subsidiary shares repurchased by subsidiary		(996)	—	—	(996)
Cash dividends paid by subsidiary		(45)	—	—	(45)
Taxes paid in lieu of shares issued for stock-based compensation		(91)	—	(4)	(95)
Other financing activities, net		11	—	1	12
Net cash provided (used) by financing activities		(291)	246	1,860	1,815
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		—	—	7	7
Net increase (decrease) in cash, cash equivalents and restricted cash		(52)	22	252	222
Cash, cash equivalents and restricted cash at beginning of period		297	107	168	572
Cash, cash equivalents and restricted cash at end of period	$	245	129	420	794