Summary of Significant Accounting Policies (Tables)
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12 Months Ended |
Dec. 31, 2019 |
|---|
| Property, Plant and Equipment |
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|
|
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|
|
|
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Estimated Useful Life |
|
December 31, 2019 |
|
December 31, 2018 |
|
|
|
|
|
amounts in millions |
|
Land |
|
NA |
|
$ |
138 |
|
183 |
|
Buildings and improvements |
|
10 - 40 years |
|
|
783 |
|
905 |
|
Support equipment |
|
3 - 20 years |
|
|
630 |
|
553 |
|
Satellite system |
|
15 years |
|
|
1,694 |
|
1,679 |
|
Construction in progress |
|
NA |
|
|
535 |
|
445 |
|
Total property and equipment |
|
|
|
$ |
3,780 |
|
3,765 |
|
|
| Share-based compensation expense |
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|
|
|
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Years ended December 31, |
|
|
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2019 |
|
2018 |
|
2017 |
|
|
|
amounts in millions |
|
Cost of services: |
|
|
|
|
|
|
|
|
Programming and content |
|
$ |
30 |
|
28 |
|
27 |
|
Customer service and billing |
|
|
4 |
|
4 |
|
4 |
|
Other |
|
|
9 |
|
5 |
|
5 |
|
Other operating expense |
|
|
49 |
|
17 |
|
16 |
|
Selling, general and administrative |
|
|
199 |
|
138 |
|
178 |
|
|
|
$ |
291 |
|
192 |
|
230 |
|
|
| Liberty Sirius XM Group |
|
| Schedule of revenue disaggregated by source |
|
|
|
|
|
|
|
Years ended December 31, |
|
|
2019 |
|
2018 |
|
|
in millions |
|
Subscriber |
$ |
6,120 |
|
5,264 |
|
Advertising |
|
1,336 |
|
188 |
|
Equipment |
|
173 |
|
155 |
|
Other |
|
165 |
|
164 |
|
Total Sirius XM Holdings revenue |
$ |
7,794 |
|
5,771 |
|
|
| Reconciliation of Basic and Diluted Weighted Average Shares |
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
|
|
|
2019 |
|
2018 |
|
2017 |
|
|
|
number of shares in millions |
|
Basic WASO |
|
319 |
|
332 |
|
336 |
|
Potentially dilutive shares |
|
4 |
|
4 |
|
4 |
|
Diluted WASO (a) |
|
323 |
|
336 |
|
340 |
|
| (a) |
As discussed in note 2, the Formula One Group has an intergroup interest in the Liberty SiriusXM Group. The intergroup interest is a quasi-equity interest which is not represented by outstanding shares of common stock; rather, the Formula One Group has an attributed value in the Liberty SiriusXM Group which is generally stated in terms of a number of shares of stock issuable to the Formula One Group with respect to its interest in the Liberty SiriusXM Group. Each reporting period, the notional shares representing the intergroup interest are marked to fair value. As the notional shares underlying the intergroup interest are not represented by outstanding shares of common stock, such shares have not been officially designated Series A, B or C Liberty SiriusXM common stock. However, Liberty has assumed that the notional shares (if and when issued) would be comprised of Series C Liberty SiriusXM common stock in order to not dilute voting percentages. Therefore, the market price of Series C Liberty SiriusXM common stock is used for the quarterly mark-to-market adjustment through the unaudited attributed consolidated statements of operations. The notional shares representing the intergroup interest have no impact on the basic earnings per share weighted average number of shares outstanding. However, in periods where the Liberty SiriusXM Group has net earnings, the notional shares representing the intergroup interest are included in the diluted earnings per share WASO as if the shares had been issued and outstanding during the period. In periods where the Liberty SiriusXM Group has net earnings, an adjustment is also made to the numerator in the diluted earnings per share calculation for the unrealized gain or loss incurred from marking the intergroup interest to fair value during the period as follows: |
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|
Years ended December 31, |
|
|
|
2019 |
|
2018 |
|
2017 |
|
|
|
amounts in millions |
|
Basic earnings (loss) attributable to Liberty SiriusXM shareholders |
$ |
494 |
|
676 |
|
1,124 |
|
Unrealized (gain) loss on the intergroup interest |
|
— |
|
NA |
|
NA |
|
Diluted earnings (loss) attributable to Liberty SiriusXM shareholders |
$ |
494 |
|
676 |
|
1,124 |
|
|
| Braves Group |
|
| Schedule of revenue disaggregated by source |
|
|
|
|
|
|
|
Years ended December 31, |
|
|
2019 |
|
2018 |
|
|
in millions |
|
Baseball |
$ |
438 |
|
404 |
|
Development |
|
38 |
|
38 |
|
Total Braves Holdings revenue |
$ |
476 |
|
442 |
|
|
| Reconciliation of Basic and Diluted Weighted Average Shares |
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
|
|
|
2019 (a) |
|
2018 |
|
2017 (a) |
|
|
|
number of shares in millions |
|
Basic WASO |
|
51 |
|
51 |
|
49 |
|
Potentially dilutive shares |
|
10 |
|
10 |
|
10 |
|
Diluted WASO (b) |
|
61 |
|
61 |
|
59 |
|
| (a) |
Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive. |
| (b) |
As discussed in note 2, following the Recapitalization and Series C Liberty Braves common stock rights offering, the number of notional shares representing the Formula One Group’s intergroup interest in the Braves Group was adjusted to 9,084,940 shares. The intergroup interest is a quasi-equity interest which is not represented by outstanding shares of common stock; rather, the Formula One Group has an attributed value in the Braves Group which is generally stated in terms of a number of shares of stock issuable to the Formula One Group with respect to its interest in the Braves Group. Each reporting period, the notional shares representing the intergroup interest are marked to fair value. As the notional shares underlying the intergroup interest are not represented by outstanding shares of common stock, such shares have not been officially designated Series A, B or C Liberty Braves common stock. However, Liberty has assumed that the notional shares (if and when issued) would be comprised of Series C Liberty Braves common stock in order to not dilute voting percentages. Therefore, the market price of Series C Liberty Braves common stock is used for the quarterly mark-to-market adjustment through the unaudited attributed consolidated statements of operations. The notional shares representing the intergroup interest have no impact on the basic earnings per share weighted average number of shares outstanding. However, in periods where the Braves Group has net earnings, the notional shares representing the intergroup interest are included in the diluted earnings per share WASO as if the shares had been issued and outstanding during the period. In periods where the Braves Group has net earnings, an adjustment is also made to the numerator in the diluted earnings per share calculation for the unrealized gain or loss incurred from marking the intergroup interest to fair value during the period as follows:
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|
Years ended December 31, |
|
|
|
2019 (a) |
|
2018 |
|
2017 (a) |
|
|
|
amounts in millions |
|
Basic earnings (loss) attributable to Liberty Braves shareholders |
$ |
(77) |
|
5 |
|
(25) |
|
Unrealized (gain) loss on the intergroup interest |
|
42 |
|
24 |
|
15 |
|
Diluted earnings (loss) attributable to Liberty Braves shareholders |
$ |
(35) |
|
29 |
|
(10) |
|
|
(a) |
Unrealized gains on the intergroup interest are excluded from the computation of diluted EPS during periods in which net losses attributable to the Braves Group are reported since the gain would be antidilutive. |
|
| Formula One Group |
|
| Schedule of revenue disaggregated by source |
|
|
|
|
|
|
|
Years ended December 31, |
|
|
2019 |
|
2018 |
|
|
in millions |
|
Primary |
$ |
1,664 |
|
1,487 |
|
Other |
|
358 |
|
340 |
|
Total Formula 1 revenue |
$ |
2,022 |
|
1,827 |
|
|
| Reconciliation of Basic and Diluted Weighted Average Shares |
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
|
|
|
2019 (a) |
|
2018 (a) |
|
2017 |
|
|
|
number of shares in millions |
|
Basic WASO |
|
231 |
|
231 |
|
207 |
|
Potentially dilutive shares |
|
2 |
|
1 |
|
4 |
|
Diluted WASO |
|
233 |
|
232 |
|
211 |
|
|
(a) |
Unrealized gains on the intergroup interest are excluded from the computation of diluted EPS during periods in which net losses attributable to the Formula One Group are reported since the gain would be antidilutive. |
Reclasses and Adjustments
|
| ASU 2014-09 |
|
| Schedule of cumulative effect of changes in consolidated financial statements |
In accordance with ASC 606, the following table illustrates the impact on our reported results in the consolidated statements of operations assuming we did not adopt ASC 606 on January 1, 2018.
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|
Year ended December 31, 2018 |
|
|
|
|
|
|
|
Balances without |
|
|
|
|
|
Impact of |
|
adoption of |
|
|
As reported |
|
ASC 606 |
|
ASC 606 |
|
|
|
in millions |
|
Revenue: |
|
|
|
|
|
|
|
Sirius XM Holdings revenue |
$ |
5,771 |
|
95 |
|
5,866 |
|
Other revenue |
$ |
442 |
|
(2) |
|
440 |
|
|
|
|
|
|
|
|
|
Costs of subscriber services: |
|
|
|
|
|
|
|
Revenue share and royalties |
$ |
1,394 |
|
88 |
|
1,482 |
|
Subscriber acquisition costs |
$ |
470 |
|
4 |
|
474 |
|
Selling, general and administrative |
$ |
1,182 |
|
(1) |
|
1,181 |
|
Income tax (expense) benefit |
$ |
(176) |
|
(1) |
|
(177) |
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
$ |
865 |
|
1 |
|
866 |
|
|