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, 2019

Condensed Balance Sheet

BALANCE SHEET INFORMATION

September 30, 2019

(unaudited)


		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	$	133	142	419	—	694
Trade and other receivables, net		632	49	97	—	778
Other current assets		225	102	137	—	464
Total current assets		990	293	653	—	1,936
Intergroup interest in the Liberty Braves Group (note 1)		—	—	252	(252)	—
Investments in affiliates, accounted for using the equity method (note 1)		638	104	956	—	1,698

Property and equipment, at cost		2,639	883	192	—	3,714
Accumulated depreciation		(1,275)	(117)	(92)	—	(1,484)
		1,364	766	100	—	2,230

Intangible assets not subject to amortization
Goodwill		15,816	180	3,956	—	19,952
FCC licenses		8,600	—	—	—	8,600
Other		1,262	143	—	—	1,405
		25,678	323	3,956	—	29,957
Intangible assets subject to amortization, net		1,632	35	4,412	—	6,079
Other assets		702	73	1,032	(62)	1,745
Total assets	$	31,004	1,594	11,361	(314)	43,645

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 3)	$	4	(7)	3	—	—
Accounts payable and accrued liabilities		1,240	57	240	—	1,537
Deferred revenue		1,938	52	245	—	2,235
Other current liabilities		74	17	19	—	110
Total current liabilities		3,256	119	507	—	3,882
Long-term debt (note 1)		8,857	521	5,329	—	14,707
Deferred income tax liabilities		1,856	78	—	(62)	1,872
Redeemable intergroup interest (note 1)		—	252	—	(252)	—
Other liabilities		634	206	166	—	1,006
Total liabilities		14,603	1,176	6,002	(314)	21,467
Equity / Attributed net assets		10,735	426	5,356	—	16,517
Noncontrolling interests in equity of subsidiaries		5,666	(8)	3	—	5,661
Total liabilities and equity	$	31,004	1,594	11,361	(314)	43,645

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2019

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
SIRIUS XM Holdings revenue	$	2,011	—	—	2,011
Formula 1 revenue		—	—	633	633
Other revenue		—	212	—	212
Total revenue		2,011	212	633	2,856
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		592	—	—	592
Programming and content		116	—	—	116
Customer service and billing		120	—	—	120
Other		52	—	—	52
Cost of Formula 1 revenue		—	—	434	434
Subscriber acquisition costs		101	—	—	101
Other operating expenses		78	145	—	223
Selling, general and administrative		363	26	51	440
Depreciation and amortization		135	20	116	271
		1,557	191	601	2,349
Operating income (loss)		454	21	32	507
Other income (expense):
Interest expense		(115)	(6)	(48)	(169)
Share of earnings (losses) of affiliates, net		(7)	4	58	55
Realized and unrealized gains (losses) on financial instruments, net		(10)	(2)	26	14
Unrealized gains (losses) on intergroup interest (note 1)		—	2	(2)	—
Other, net		(51)	—	4	(47)
		(183)	(2)	38	(147)
Earnings (loss) before income taxes		271	19	70	360
Income tax (expense) benefit		(63)	(7)	(28)	(98)
Net earnings (loss)		208	12	42	262
Less net earnings (loss) attributable to the noncontrolling interests		68	—	1	69
Net earnings (loss) attributable to Liberty stockholders	$	140	12	41	193

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2018

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
SIRIUS XM Holdings revenue	$	1,468	—	—	1,468
Formula 1 revenue		—	—	647	647
Other revenue		—	200	—	200
Total revenue		1,468	200	647	2,315
Operating costs and expenses, including stock-based compensation (note 2):
Cost of 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	106	—	137
Selling, general and administrative		214	26	48	288
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

Nine months ended September 30, 2019

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
SIRIUS XM Holdings revenue	$	5,732	—	—	5,732
Formula 1 revenue		—	—	1,499	1,499
Other revenue		—	442	—	442
Total revenue		5,732	442	1,499	7,673
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		1,684	—	—	1,684
Programming and content		338	—	—	338
Customer service and billing		352	—	—	352
Other		136	—	—	136
Cost of Formula 1 revenue		—	—	1,023	1,023
Subscriber acquisition costs		313	—	—	313
Other operating expenses		206	305	—	511
Selling, general and administrative		1,050	77	148	1,275
Acquisition and other related costs		83	—	—	83
Depreciation and amortization		396	54	340	790
		4,558	436	1,511	6,505
Operating income (loss)		1,174	6	(12)	1,168
Other income (expense):
Interest expense		(326)	(20)	(149)	(495)
Share of earnings (losses) of affiliates, net		(18)	13	74	69
Realized and unrealized gains (losses) on financial instruments, net		6	(6)	(171)	(171)
Unrealized gains (losses) on intergroup interest (note 1)		—	(26)	26	—
Other, net		(42)	1	23	(18)
		(380)	(38)	(197)	(615)
Earnings (loss) before income taxes		794	(32)	(209)	553
Income tax (expense) benefit		(251)	(1)	26	(226)
Net earnings (loss)		543	(33)	(183)	327
Less net earnings (loss) attributable to the noncontrolling interests		175	—	1	176
Net earnings (loss) attributable to Liberty stockholders	$	368	(33)	(184)	151

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2018

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
SIRIUS XM Holdings revenue	$	4,275	—	—	4,275
Formula 1 revenue		—	—	1,346	1,346
Other revenue		—	410	—	410
Total revenue		4,275	410	1,346	6,031
Operating costs and expenses, including stock-based compensation (note 2):
Cost of 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	247	—	336
Selling, general and administrative		640	72	137	849
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

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2019

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	543	(33)	(183)	327
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		396	54	340	790
Stock-based compensation		204	13	21	238
Share of (earnings) loss of affiliates, net		18	(13)	(74)	(69)
Unrealized (gains) losses on intergroup interest, net		—	26	(26)	—
Realized and unrealized (gains) losses on financial instruments, net		(6)	6	171	171
Noncash interest expense (benefit)		5	1	1	7
Deferred income tax expense (benefit)		232	7	(43)	196
Intergroup tax allocation		1	(6)	5	—
Intergroup tax (payments) receipts		(2)	22	(20)	—
Other charges (credits), net		58	8	(5)	61
Changes in operating assets and liabilities
Current and other assets		14	(37)	(38)	(61)
Payables and other liabilities		(26)	9	127	110
Net cash provided (used) by operating activities		1,437	57	276	1,770
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(14)	(4)	(7)	(25)
Cash proceeds from sale of investments		373	—	16	389
Cash paid for acquisitions, net of cash acquired		313	—	—	313
Capital expended for property and equipment		(239)	(72)	(27)	(338)
Sales of short term investments and other marketable securities		73	—	—	73
Other investing activities, net		2	—	(4)	(2)
Net cash provided (used) by investing activities		508	(76)	(22)	410
Cash flows from financing activities:
Borrowings of debt		4,943	75	—	5,018
Repayments of debt		(4,311)	(29)	(5)	(4,345)
Series C Liberty SiriusXM stock repurchases		(374)	—	—	(374)
Subsidiary shares repurchased by subsidiary		(1,959)	—	—	(1,959)
Cash dividends paid by subsidiary		(52)	—	—	(52)
Taxes paid in lieu of shares issued for stock-based compensation		(109)	(1)	9	(101)
Other financing activities, net		(41)	(6)	6	(41)
Net cash provided (used) by financing activities		(1,903)	39	10	(1,854)
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		42	20	259	321
Cash, cash equivalents and restricted cash at beginning of period		102	190	160	452
Cash, cash equivalents and restricted cash at end of period	$	144	210	419	773

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2018

(unaudited)


		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
Cash paid for acquisitions, net of cash acquired		(1)	—	—	(1)
Capital expended for property and equipment		(239)	(15)	(11)	(265)
Other investing activities, net		5	33	5	43
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