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, 2023

Financial Information for Tracking Stock Groups

Condensed Balance Sheets

BALANCE SHEET INFORMATION

September 30, 2023

(unaudited)


		Attributed (note 1)
	Liberty			Liberty
	SiriusXM		Formula One	Live	Inter-Group	Consolidated
	Group		Group	Group	Eliminations	Liberty

	amounts in millions
Assets
Current assets:
Cash and cash equivalents	$	327	1,470	315	—	2,112
Trade and other receivables, net		659	149	—	—	808
Other current assets		357	348	—	—	705
Total current assets		1,343	1,967	315	—	3,625
Investments in affiliates, accounted for using the equity method (note 1)		705	43	397	—	1,145

Property and equipment, at cost		3,083	874	—	—	3,957
Accumulated depreciation		(1,829)	(123)	—	—	(1,952)
		1,254	751	—	—	2,005

Intangible assets not subject to amortization
Goodwill		15,209	3,956	—	—	19,165
FCC licenses		8,600	—	—	—	8,600
Other		1,242	—	—	—	1,242
		25,051	3,956	—	—	29,007
Intangible assets subject to amortization, net		1,017	2,924	—	—	3,941
Other assets		567	913	479	(167)	1,792
Total assets	$	29,937	10,554	1,191	(167)	41,515

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 3)	$	51	(53)	2	—	—
Accounts payable and accrued liabilities		1,323	390	2	—	1,715
Current portion of debt		730	32	65	—	827
Deferred revenue		1,248	776	—	—	2,024
Other current liabilities		78	32	—	—	110
Total current liabilities		3,430	1,177	69	—	4,676
Long-term debt (note 1)		10,810	2,865	1,161	—	14,836
Deferred income tax liabilities		2,207	—	—	(167)	2,040
Other liabilities		575	149	—	—	724
Total liabilities		17,022	4,191	1,230	(167)	22,276
Equity / Attributed net assets		9,946	6,363	(62)	—	16,247
Noncontrolling interests in equity of subsidiaries		2,969	—	23	—	2,992
Total liabilities and equity	$	29,937	10,554	1,191	(167)	41,515

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2023

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	2,271	—	—	—	2,271
Formula 1 revenue		—	887	—	—	887
Other revenue		—	—	—	49	49
Total revenue		2,271	887	—	49	3,207
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		730	—	—	—	730
Programming and content		153	—	—	—	153
Customer service and billing		117	—	—	—	117
Other		57	—	—	—	57
Cost of Formula 1 revenue (exclusive of depreciation shown separately below)		—	615	—	—	615
Subscriber acquisition costs		87	—	—	—	87
Other operating expenses		72	—	—	38	110
Selling, general and administrative		376	79	5	9	469
Impairment, restructuring and acquisition costs, net of recoveries		6	—	—	—	6
Depreciation and amortization		145	86	—	3	234
		1,743	780	5	50	2,578
Operating income (loss)		528	107	(5)	(1)	629
Other income (expense):
Interest expense		(135)	(56)	(2)	(3)	(196)
Share of earnings (losses) of affiliates, net		45	2	90	1	138
Realized and unrealized gains (losses) on financial instruments, net		17	66	(72)	—	11
Unrealized gains (losses) on intergroup interests (note 1)		4	16	—	(20)	—
Other, net		6	14	(35)	1	(14)
		(63)	42	(19)	(21)	(61)
Earnings (loss) before income taxes		465	149	(24)	(22)	568
Income tax (expense) benefit		(100)	(31)	5	1	(125)
Net earnings (loss)		365	118	(19)	(21)	443
Less net earnings (loss) attributable to the noncontrolling interests		58	—	—	—	58
Net earnings (loss) attributable to Liberty stockholders	$	307	118	(19)	(21)	385

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2023

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	6,665	—	—	—	6,665
Formula 1 revenue		—	1,992	—	—	1,992
Other revenue		—	—	—	350	350
Total revenue		6,665	1,992	—	350	9,007
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		2,162	—	—	—	2,162
Programming and content		456	—	—	—	456
Customer service and billing		363	—	—	—	363
Other		163	—	—	—	163
Cost of Formula 1 revenue (exclusive of depreciation shown separately below)		—	1,340	—	—	1,340
Subscriber acquisition costs		270	—	—	—	270
Other operating expenses		234	—	—	274	508
Selling, general and administrative		1,148	223	5	69	1,445
Impairment, restructuring and acquisition costs, net of recoveries		56	—	—	1	57
Depreciation and amortization		460	254	—	37	751
		5,312	1,817	5	381	7,515
Operating income (loss)		1,353	175	(5)	(31)	1,492
Other income (expense):
Interest expense		(408)	(161)	(2)	(21)	(592)
Share of earnings (losses) of affiliates, net		117	(1)	90	12	218
Realized and unrealized gains (losses) on financial instruments, net		(145)	83	(72)	3	(131)
Unrealized gains (losses) on intergroup interest (note 1)		68	15	—	(83)	—
Other, net		32	48	(35)	5	50
		(336)	(16)	(19)	(84)	(455)
Earnings (loss) before income taxes		1,017	159	(24)	(115)	1,037
Income tax (expense) benefit		(215)	(35)	5	6	(239)
Net earnings (loss)		802	124	(19)	(109)	798
Less net earnings (loss) attributable to the noncontrolling interests		146	(1)	—	—	145
Net earnings (loss) attributable to Liberty stockholders	$	656	125	(19)	(109)	653

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2022

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Formula One	Braves	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	715	252	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 (exclusive of depreciation shown separately below)		—	494	—	494
Subscriber acquisition costs		86	—	—	86
Other operating expenses		69	—	184	253
Selling, general and administrative		424	68	33	525
Impairment, restructuring and acquisition costs, net of recoveries		69	—	5	74
Depreciation and amortization		157	89	22	268
		1,846	651	244	2,741
Operating income (loss)		434	64	8	506
Other income (expense):
Interest expense		(130)	(41)	(8)	(179)
Share of earnings (losses) of affiliates, net		104	1	6	111
Realized and unrealized gains (losses) on financial instruments, net		76	24	6	106
Unrealized gains (losses) on intergroup interests (note 1)		(16)	47	(31)	—
Other, net		13	7	—	20
		47	38	(27)	58
Earnings (loss) before income taxes		481	102	(19)	564
Income tax (expense) benefit		(135)	8	(3)	(130)
Net earnings (loss)		346	110	(22)	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	108	(22)	391

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2022

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Formula One	Braves	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	1,819	535	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 (exclusive of depreciation shown separately below)		—	1,223	—	1,223
Subscriber acquisition costs		267	—	—	267
Other operating expenses		208	—	382	590
Selling, general and administrative		1,247	192	88	1,527
Impairment, restructuring and acquisition costs, net of recoveries		70	—	5	75
Depreciation and amortization		461	272	57	790
		5,330	1,687	532	7,549
Operating income (loss)		1,390	132	3	1,525
Other income (expense):
Interest expense		(377)	(100)	(20)	(497)
Share of earnings (losses) of affiliates, net		140	—	18	158
Realized and unrealized gains (losses) on financial instruments, net		433	100	12	545
Unrealized gains (losses) on intergroup interests (note 1)		(31)	26	5	—
Other, net		37	29	21	87
		202	55	36	293
Earnings (loss) before income taxes		1,592	187	39	1,818
Income tax (expense) benefit		(404)	—	(10)	(414)
Net earnings (loss)		1,188	187	29	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	184	29	1,253

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2023

(unaudited)


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

	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	802	124	(19)	(109)	798
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		460	254	—	37	751
Stock-based compensation		151	14	1	7	173
Non-cash impairment and restructuring costs		21	—	—	—	21
Share of (earnings) loss of affiliates, net		(117)	1	(90)	(12)	(218)
Unrealized (gains) losses on intergroup interests, net		(68)	(15)	—	83	—
Realized and unrealized (gains) losses on financial instruments, net		145	(83)	72	(3)	131
Deferred income tax expense (benefit)		(1)	19	(4)	(5)	9
Intergroup tax allocation		136	(135)	(1)	—	—
Intergroup tax (payments) receipts		(90)	91	—	(1)	—
Other charges (credits), net		(10)	6	34	4	34
Changes in operating assets and liabilities
Current and other assets		5	(122)	(10)	(34)	(161)
Payables and other liabilities		(136)	400	14	65	343
Net cash provided (used) by operating activities		1,298	554	(3)	32	1,881
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(44)	(173)	—	—	(217)
Cash proceeds from dispositions		—	110	1	—	111
Capital expended for property and equipment, including internal-use software and website development		(520)	(308)	—	(35)	(863)
Other investing activities, net		(1)	(20)	—	—	(21)
Net cash provided (used) by investing activities		(565)	(391)	1	(35)	(990)
Cash flows from financing activities:
Borrowings of debt		2,601	—	1,135	30	3,766
Repayments of debt		(3,306)	(64)	(918)	(20)	(4,308)
Intergroup (repayments) borrowings		273	(273)	—	—	—
Subsidiary shares repurchased by subsidiary		(274)	—	—	—	(274)
Cash dividends paid by subsidiary		(48)	—	—	—	(48)
Taxes paid in lieu of shares issued for stock-based compensation		(52)	(8)	—	(1)	(61)
Atlanta Braves Holdings, Inc. Split-Off		—	—	—	(188)	(188)
Reclassification		—	(100)	100	—	—
Other financing activities, net		38	19	—	9	66
Net cash provided (used) by financing activities		(768)	(426)	317	(170)	(1,047)
Net increase (decrease) in cash, cash equivalents and restricted cash		(35)	(263)	315	(173)	(156)
Cash, cash equivalents and restricted cash at beginning of period		370	1,733	NA	173	2,276
Cash, cash equivalents and restricted cash at end of period	$	335	1,470	315	—	2,120

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2022

(unaudited)


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

	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	1,188	187	29	1,404
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		461	272	57	790
Stock-based compensation		152	12	9	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	(26)	(5)	—
Realized and unrealized (gains) losses on financial instruments, net		(433)	(100)	(12)	(545)
Deferred income tax expense (benefit)		267	16	(6)	277
Intergroup tax allocation		80	(95)	15	—
Intergroup tax (payments) receipts		(66)	57	9	—
Other charges (credits), net		(20)	(4)	(3)	(27)
Changes in operating assets and liabilities
Current and other assets		41	(91)	(52)	(102)
Payables and other liabilities		(325)	188	(8)	(145)
Net cash provided (used) by operating activities		1,304	416	20	1,740
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(1)	(35)	(5)	(41)
Cash proceeds from dispositions		50	51	48	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)	(263)	(13)	(555)
Other investing activities, net		4	73	—	77
Net cash provided (used) by investing activities		(362)	(174)	30	(506)
Cash flows from financing activities:
Borrowings of debt		3,019	468	135	3,622
Repayments of debt		(3,079)	(634)	(235)	(3,948)
Intergroup (repayments) borrowings		78	(64)	(14)	—
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	58	(6)	82
Net cash provided (used) by financing activities		(1,276)	(184)	(120)	(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)	45	(70)	(359)
Cash, cash equivalents and restricted cash at beginning of period		606	2,074	244	2,924
Cash, cash equivalents and restricted cash at end of period	$	272	2,119	174	2,565