Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.24.3
Discontinued Operations
9 Months Ended
Sep. 30, 2024
Discontinued Operations  
Discontinued Operations

(2) Discontinued Operations

On September 9, 2024, Liberty completed the split-off of its wholly owned subsidiary, Liberty Sirius XM Holdings (the “Liberty Sirius XM Holdings Split-Off”). The Liberty Sirius XM Holdings Split-Off was accomplished through the redemption by the Company of each outstanding share of Liberty SiriusXM common stock in exchange for 0.8375 of a share of Liberty Sirius XM Holdings common stock, with cash paid in lieu of fractional shares. Liberty Sirius XM Holdings is comprised of the businesses, assets and liabilities attributed to the Liberty SiriusXM Group immediately prior to the Liberty Sirius XM Holdings Split-Off. The Liberty Sirius XM Holdings Split-Off was intended to be tax-free to holders of Liberty SiriusXM common stock (except with respect to cash received in lieu of fractional shares).

Following the Liberty Sirius XM Holdings Split-Off, on September 9, 2024, a wholly owned subsidiary of Liberty Sirius XM Holdings merged with and into Sirius XM Holdings, with Sirius XM Holdings surviving the merger as a wholly owned subsidiary of Liberty Sirius XM Holdings (the “Merger” and, together with the Liberty Sirius XM Holdings Split-Off, the “Transactions”). As a result of the Transactions, Liberty Sirius XM Holdings is an independent public company separate from Liberty.

As disclosed in note 1, Liberty Sirius XM Holdings is presented as a discontinued operation in the Company’s condensed consolidated financial statements as the Liberty Sirius XM Holdings Split-Off represents a strategic shift that had a major effect on the Company’s operations and financial results.

The following table presents a reconciliation of the carrying amounts of the major classes of assets and liabilities of discontinued operations to the total assets and liabilities of discontinued operations as presented in the condensed consolidated balance sheet.

    

December 31, 2023

amounts in millions

Assets

Current assets

$

1,361

Investments in affiliates, accounted for using the equity method

 

715

Property and equipment, net

 

1,245

Intangible assets not subject to amortization

25,051

Intangible assets subject to amortization, net

 

1,014

Other assets

 

515

Total assets

$

29,901

Liabilities

Accounts payable and accrued liabilities

$

1,536

Current portion of debt

1,074

Other current liabilities

 

1,266

Long-term debt

 

10,063

Deferred income tax liabilities

 

2,245

Other liabilities

 

526

Total liabilities

$

16,710

The following table provided details about the major classes of line items constituting earnings (loss) from discontinued operations, net of tax as presented in the condensed consolidated statements of operations.

Three months ended

    

Nine months ended

September 30,

September 30,

    

2024

    

2023

    

2024

    

2023

amounts in millions

Revenue

$

1,664

 

2,271

 

6,004

 

6,665

Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below)

792

1,057

2,852

3,144

Operating expense

 

122

 

159

 

461

 

504

Selling, general and administrative

 

297

 

376

 

1,030

 

1,148

Impairment, restructuring and acquisition costs

3,322

6

3,339

56

Depreciation and amortization

 

110

 

145

 

421

 

460

 

4,643

 

1,743

 

8,103

 

5,312

Operating income (loss)

 

(2,979)

 

528

 

(2,099)

 

1,353

Other income (expense):

Interest expense

 

(94)

 

(134)

 

(349)

 

(404)

Other, net

 

8

 

(24)

 

122

 

10

 

(86)

 

(158)

 

(227)

 

(394)

Earnings (loss) from discontinued operations before income taxes

 

(3,065)

 

370

 

(2,326)

 

959

Income tax (expense) benefit

 

63

 

(79)

 

(86)

 

(202)

Net earnings (loss) from discontinued operations

 

(3,002)

 

291

 

(2,412)

 

757

Less net earnings (loss) from discontinued operations attributable to the noncontrolling interests

 

(502)

 

58

 

(410)

 

146

Net earnings (loss) from discontinued operations attributable to Liberty stockholders

$

(2,500)

 

233

 

(2,002)

 

611