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, 2022

Condensed Balance Sheets

BALANCE SHEET INFORMATION

September 30, 2022

(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	$	264	159	2,119	—	2,542
Trade and other receivables, net		658	65	103	—	826
Other current assets		325	81	196	—	602
Total current assets		1,247	305	2,418	—	3,970
Intergroup interests (note 1)		270	—	187	(457)	—
Investments in affiliates, accounted for using the equity method (note 1)		885	114	29	—	1,028

Property and equipment, at cost		2,863	999	467	—	4,329
Accumulated depreciation		(1,779)	(265)	(103)	—	(2,147)
		1,084	734	364	—	2,182

Intangible assets not subject to amortization
Goodwill		15,209	176	3,956	—	19,341
FCC licenses		8,600	—	—	—	8,600
Other		1,242	124	—	—	1,366
		25,051	300	3,956	—	29,307
Intangible assets subject to amortization, net		1,132	25	3,249	—	4,406
Other assets		760	56	1,528	(2)	2,342
Total assets	$	30,429	1,534	11,731	(459)	43,235

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 3)	$	4	(7)	3	—	—
Accounts payable and accrued liabilities		1,315	58	267	—	1,640
Current portion of debt		381	75	43	—	499
Deferred revenue		1,381	78	471	—	1,930
Other current liabilities		65	4	26	—	95
Total current liabilities		3,146	208	810	—	4,164
Long-term debt (note 1)		13,133	523	3,410	—	17,066
Deferred income tax liabilities		2,042	53	—	(2)	2,093
Redeemable intergroup interests (note 1)		—	238	219	(457)	—
Other liabilities		544	173	151	—	868
Total liabilities		18,865	1,195	4,590	(459)	24,191
Redeemable noncontrolling interests in equity of subsidiary		—	—	578	—	578
Equity / Attributed net assets		8,457	339	6,538	—	15,334
Noncontrolling interests in equity of subsidiaries		3,107	—	25	—	3,132
Total liabilities and equity	$	30,429	1,534	11,731	(459)	43,235

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2022

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	2,280	—	—	2,280
Formula 1 revenue		—	—	715	715
Other revenue		—	252	—	252
Total revenue		2,280	252	715	3,247
Operating costs and expenses, including stock-based compensation (note 2):
Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below):
Revenue share and royalties		709	—	—	709
Programming and content		156	—	—	156
Customer service and billing		122	—	—	122
Other		54	—	—	54
Cost of Formula 1 revenue		—	—	494	494
Subscriber acquisition costs		86	—	—	86
Other operating expenses		69	184	—	253
Selling, general and administrative		424	33	68	525
Impairment, restructuring and acquisition costs, net of recoveries		69	5	—	74
Depreciation and amortization		157	22	89	268
		1,846	244	651	2,741
Operating income (loss)		434	8	64	506
Other income (expense):
Interest expense		(130)	(8)	(41)	(179)
Share of earnings (losses) of affiliates, net		104	6	1	111
Realized and unrealized gains (losses) on financial instruments, net		76	6	24	106
Gains (losses) on dilution of investment in affiliate		2	—	—	2
Unrealized gains (losses) on intergroup interests (note 1)		(16)	(31)	47	—
Other, net		11	—	7	18
		47	(27)	38	58
Earnings (loss) before income taxes		481	(19)	102	564
Income tax (expense) benefit		(135)	(3)	8	(130)
Net earnings (loss)		346	(22)	110	434
Less net earnings (loss) attributable to the noncontrolling interests		41	—	5	46
Less net earnings (loss) attributable to redeemable noncontrolling interest		—	—	(3)	(3)
Net earnings (loss) attributable to Liberty stockholders	$	305	(22)	108	391

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2021

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	2,198	—	—	2,198
Formula 1 revenue		—	—	668	668
Other revenue		—	234	—	234
Total revenue		2,198	234	668	3,100
Operating costs and expenses, including stock-based compensation (note 2):
Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below):
Revenue share and royalties		671	—	—	671
Programming and content		142	—	—	142
Customer service and billing		128	—	—	128
Other		57	—	—	57
Cost of Formula 1 revenue		—	—	449	449
Subscriber acquisition costs		70	—	—	70
Other operating expenses		67	154	—	221
Selling, general and administrative		402	28	51	481
Impairment, restructuring and acquisition costs, net of recoveries		(95)	—	—	(95)
Depreciation and amortization		152	22	100	274
		1,594	204	600	2,398
Operating income (loss)		604	30	68	702
Other income (expense):
Interest expense		(130)	(6)	(32)	(168)
Share of earnings (losses) of affiliates, net		2	9	(2)	9
Realized and unrealized gains (losses) on financial instruments, net		(42)	—	2	(40)
Gains (losses) on dilution of investment in affiliate		142	—	—	142
Unrealized gains (losses) on intergroup interests (note 1)		20	12	(32)	—
Other, net		(75)	1	2	(72)
		(83)	16	(62)	(129)
Earnings (loss) before income taxes		521	46	6	573
Income tax (expense) benefit		(108)	(10)	(55)	(173)
Net earnings (loss)		413	36	(49)	400
Less net earnings (loss) attributable to the noncontrolling interests		71	—	3	74
Less net earnings (loss) attributable to redeemable noncontrolling interest		—	—	(2)	(2)
Net earnings (loss) attributable to Liberty stockholders	$	342	36	(50)	328

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2022

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	6,720	—	—	6,720
Formula 1 revenue		—	—	1,819	1,819
Other revenue		—	535	—	535
Total revenue		6,720	535	1,819	9,074
Operating costs and expenses, including stock-based compensation (note 2):
Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below):
Revenue share and royalties		2,090	—	—	2,090
Programming and content		448	—	—	448
Customer service and billing		373	—	—	373
Other		166	—	—	166
Cost of Formula 1 revenue		—	—	1,223	1,223
Subscriber acquisition costs		267	—	—	267
Other operating expenses		208	382	—	590
Selling, general and administrative		1,247	88	192	1,527
Impairment, restructuring and acquisition costs, net of recoveries		70	5	—	75
Depreciation and amortization		461	57	272	790
		5,330	532	1,687	7,549
Operating income (loss)		1,390	3	132	1,525
Other income (expense):
Interest expense		(377)	(20)	(100)	(497)
Share of earnings (losses) of affiliates, net		140	18	—	158
Realized and unrealized gains (losses) on financial instruments, net		433	12	100	545
Gains (losses) on dilution of investment in affiliate		9	—	—	9
Unrealized gains (losses) on intergroup interest (note 1)		(31)	5	26	—
Other, net		28	21	29	78
		202	36	55	293
Earnings (loss) before income taxes		1,592	39	187	1,818
Income tax (expense) benefit		(404)	(10)	—	(414)
Net earnings (loss)		1,188	29	187	1,404
Less net earnings (loss) attributable to the noncontrolling interests		148	—	16	164
Less net earnings (loss) attributable to redeemable noncontrolling interest		—	—	(13)	(13)
Net earnings (loss) attributable to Liberty stockholders	$	1,040	29	184	1,253

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2021

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	6,415	—	—	6,415
Formula 1 revenue		—	—	1,349	1,349
Other revenue		—	466	—	466
Total revenue		6,415	466	1,349	8,230
Operating costs and expenses, including stock-based compensation (note 2):
Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below):
Revenue share and royalties		1,974	—	—	1,974
Programming and content		407	—	—	407
Customer service and billing		372	—	—	372
Other		167	—	—	167
Cost of Formula 1 revenue		—	—	931	931
Subscriber acquisition costs		245	—	—	245
Other operating expenses		197	316	—	513
Selling, general and administrative		1,122	73	141	1,336
Impairment, restructuring and acquisition costs, net of recoveries		13	—	—	13
Depreciation and amortization		451	56	299	806
		4,948	445	1,371	6,764
Operating income (loss)		1,467	21	(22)	1,466
Other income (expense):
Interest expense		(373)	(18)	(93)	(484)
Share of earnings (losses) of affiliates, net		(181)	20	27	(134)
Realized and unrealized gains (losses) on financial instruments, net		(42)	1	107	66
Gains (losses) on dilution of investment in affiliate		152	—	—	152
Unrealized gains (losses) on intergroup interests (note 1)		52	(15)	(37)	—
Other, net		(66)	1	11	(54)
		(458)	(11)	15	(454)
Earnings (loss) before income taxes		1,009	10	(7)	1,012
Income tax (expense) benefit		(126)	(8)	36	(98)
Net earnings (loss)		883	2	29	914
Less net earnings (loss) attributable to the noncontrolling interests		215	—	19	234
Less net earnings (loss) attributable to redeemable noncontrolling interest		—	—	51	51
Net earnings (loss) attributable to Liberty stockholders	$	668	2	(41)	629

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2022

(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)	$	1,188	29	187	1,404
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		461	57	272	790
Stock-based compensation		152	9	12	173
Non-cash impairment and restructuring costs		68	5	—	73
Share of (earnings) loss of affiliates, net		(140)	(18)	—	(158)
Unrealized (gains) losses on intergroup interests, net		31	(5)	(26)	—
Realized and unrealized (gains) losses on financial instruments, net		(433)	(12)	(100)	(545)
Losses (gains) on dilution of investment in affiliate		(9)	—	—	(9)
Deferred income tax expense (benefit)		267	(6)	16	277
Intergroup tax allocation		80	15	(95)	—
Intergroup tax (payments) receipts		(66)	9	57	—
Other charges (credits), net		(11)	(3)	(4)	(18)
Changes in operating assets and liabilities
Current and other assets		41	(52)	(91)	(102)
Payables and other liabilities		(325)	(8)	188	(145)
Net cash provided (used) by operating activities		1,304	20	416	1,740
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(1)	(5)	(35)	(41)
Cash proceeds from dispositions		50	48	51	149
Cash (paid) received for acquisitions, net of cash acquired		(136)	—	—	(136)
Capital expended for property and equipment, including internal-use software and website development		(279)	(13)	(263)	(555)
Other investing activities, net		4	—	73	77
Net cash provided (used) by investing activities		(362)	30	(174)	(506)
Cash flows from financing activities:
Borrowings of debt		3,019	135	468	3,622
Repayments of debt		(3,079)	(235)	(634)	(3,948)
Intergroup (repayments) borrowings		78	(14)	(64)	—
Liberty stock repurchases		(358)	—	(37)	(395)
Subsidiary shares repurchased by subsidiary		(599)	—	—	(599)
Cash dividends paid by subsidiary		(233)	—	—	(233)
Taxes paid in lieu of shares issued for stock-based compensation		(134)	—	25	(109)
Other financing activities, net		30	(6)	58	82
Net cash provided (used) by financing activities		(1,276)	(120)	(184)	(1,580)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		—	—	(13)	(13)
Net increase (decrease) in cash, cash equivalents and restricted cash		(334)	(70)	45	(359)
Cash, cash equivalents and restricted cash at beginning of period		606	244	2,074	2,924
Cash, cash equivalents and restricted cash at end of period	$	272	174	2,119	2,565

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2021

(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)	$	883	2	29	914
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		451	56	299	806
Stock-based compensation		158	9	21	188
Non-cash impairment and restructuring costs		24	—	—	24
Share of (earnings) loss of affiliates, net		181	(20)	(27)	134
Unrealized (gains) losses on intergroup interests, net		(52)	15	37	—
Realized and unrealized (gains) losses on financial instruments, net		42	(1)	(107)	(66)
Losses (gains) on dilution of investment in affiliate		(152)	—	—	(152)
Deferred income tax expense (benefit)		66	10	(43)	33
Intergroup tax allocation		5	(2)	(3)	—
Other charges (credits), net		77	7	3	87
Changes in operating assets and liabilities
Current and other assets		54	(52)	(47)	(45)
Payables and other liabilities		(439)	(16)	205	(250)
Net cash provided (used) by operating activities		1,298	8	367	1,673
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(66)	—	(152)	(218)
Investment of subsidiary initial public offering proceeds into trust account		—	—	(575)	(575)
Cash proceeds from dispositions		27	2	167	196
Cash (paid) received for acquisitions, net of cash acquired		(14)	—	—	(14)
Capital expended for property and equipment, including internal-use software and website development		(244)	(26)	(10)	(280)
Proceeds from insurance recoveries		225	—	—	225
Other investing activities, net		6	8	37	51
Net cash provided (used) by investing activities		(66)	(16)	(533)	(615)
Cash flows from financing activities:
Borrowings of debt		6,294	113	—	6,407
Repayments of debt		(5,871)	(67)	(191)	(6,129)
Liberty stock repurchases		(351)	—	(47)	(398)
Subsidiary shares repurchased by subsidiary		(1,174)	—	—	(1,174)
Cash dividends paid by subsidiary		(41)	—	—	(41)
Taxes paid in lieu of shares issued for stock-based compensation		(91)	—	(2)	(93)
Proceeds from initial public offering of subsidiary		—	—	575	575
Settlement of intergroup call spread		(384)	—	384	—
Other financing activities, net		(85)	(6)	(37)	(128)
Net cash provided (used) by financing activities		(1,703)	40	682	(981)
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		(471)	32	511	72
Cash, cash equivalents and restricted cash at beginning of period		1,008	185	1,684	2,877
Cash, cash equivalents and restricted cash at end of period	$	537	217	2,195	2,949