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)

6 Months Ended

Jun. 30, 2019

Condensed Balance Sheet

BALANCE SHEET INFORMATION

June 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	$	236	127	334	—	697
Trade and other receivables, net		628	83	138	—	849
Other current assets		239	44	102	—	385
Total current assets		1,103	254	574	—	1,931
Intergroup interest in the Liberty Braves Group (note 1)		—	—	254	(254)	—
Investments in affiliates, accounted for using the equity method (note 1)		649	103	942	—	1,694

Property and equipment, at cost		2,592	857	181	—	3,630
Accumulated depreciation		(1,223)	(105)	(91)	—	(1,419)
		1,369	752	90	—	2,211

Intangible assets not subject to amortization
Goodwill		15,812	180	3,956	—	19,948
FCC licenses		8,600	—	—	—	8,600
Other		1,262	143	—	—	1,405
		25,674	323	3,956	—	29,953
Intangible assets subject to amortization, net		1,656	44	4,522	—	6,222
Other assets		711	73	960	(55)	1,689
Total assets	$	31,162	1,549	11,298	(309)	43,700

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 3)	$	—	(8)	8	—	—
Accounts payable and accrued liabilities		1,220	62	225	—	1,507
Current portion of debt (note 1)		—	13	—	—	13
Deferred revenue		1,974	95	287	—	2,356
Other current liabilities		71	8	18	—	97
Total current liabilities		3,265	170	538	—	3,973
Long-term debt (note 1)		8,703	452	5,256	—	14,411
Deferred income tax liabilities		1,809	70	—	(55)	1,824
Redeemable intergroup interest (note 1)		—	254	—	(254)	—
Other liabilities		653	200	158	—	1,011
Total liabilities		14,430	1,146	5,952	(309)	21,219
Equity / Attributed net assets		10,842	411	5,343	—	16,596
Noncontrolling interests in equity of subsidiaries		5,890	(8)	3	—	5,885
Total liabilities and equity	$	31,162	1,549	11,298	(309)	43,700

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2019

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
SIRIUS XM Holdings revenue	$	1,977	—	—	1,977
Formula 1 revenue		—	—	620	620
Other revenue		—	208	—	208
Total revenue		1,977	208	620	2,805
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		600	—	—	600
Programming and content		116	—	—	116
Customer service and billing		119	—	—	119
Other		47	—	—	47
Cost of Formula 1 revenue		—	—	441	441
Subscriber acquisition costs		104	—	—	104
Other operating expenses		74	129	—	203
Selling, general and administrative		361	24	51	436
Acquisition and other related costs		7	—	—	7
Depreciation and amortization		136	21	114	271
		1,564	174	606	2,344
Operating income (loss)		413	34	14	461
Other income (expense):
Interest expense		(109)	(7)	(51)	(167)
Share of earnings (losses) of affiliates, net		(7)	7	34	34
Realized and unrealized gains (losses) on financial instruments, net		15	(2)	(100)	(87)
Unrealized gains (losses) on intergroup interest (note 1)		—	(2)	2	—
Other, net		6	1	14	21
		(95)	(3)	(101)	(199)
Earnings (loss) before income taxes		318	31	(87)	262
Income tax (expense) benefit		(75)	(5)	10	(70)
Net earnings (loss)		243	26	(77)	192
Less net earnings (loss) attributable to the noncontrolling interests		76	—	—	76
Net earnings (loss) attributable to Liberty stockholders	$	167	26	(77)	116

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2018

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
SIRIUS XM Holdings revenue	$	1,432	—	—	1,432
Formula 1 revenue		—	—	585	585
Other revenue		—	182	—	182
Total revenue		1,432	182	585	2,199
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		404	—	—	404
Programming and content		105	—	—	105
Customer service and billing		95	—	—	95
Other		33	—	—	33
Cost of Formula 1 revenue		—	—	414	414
Subscriber acquisition costs		119	—	—	119
Other operating expenses		27	97	—	124
Selling, general and administrative		224	27	49	300
Depreciation and amortization		92	23	116	231
		1,099	147	579	1,825
Operating income (loss)		333	35	6	374
Other income (expense):
Interest expense		(99)	(7)	(47)	(153)
Share of earnings (losses) of affiliates, net		(1)	3	20	22
Realized and unrealized gains (losses) on financial instruments, net		62	—	(4)	58
Unrealized gains (losses) on intergroup interest (note 1)		—	(28)	28	—
Other, net		12	1	8	21
		(26)	(31)	5	(52)
Earnings (loss) before income taxes		307	4	11	322
Income tax (expense) benefit		(59)	(7)	(1)	(67)
Net earnings (loss)		248	(3)	10	255
Less net earnings (loss) attributable to the noncontrolling interests		83	(1)	1	83
Net earnings (loss) attributable to Liberty stockholders	$	165	(2)	9	172

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2019

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
SIRIUS XM Holdings revenue	$	3,721	—	—	3,721
Formula 1 revenue		—	—	866	866
Other revenue		—	230	—	230
Total revenue		3,721	230	866	4,817
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		1,092	—	—	1,092
Programming and content		222	—	—	222
Customer service and billing		232	—	—	232
Other		84	—	—	84
Cost of Formula 1 revenue		—	—	589	589
Subscriber acquisition costs		212	—	—	212
Other operating expenses		128	160	—	288
Selling, general and administrative		687	51	97	835
Acquisition and other related costs		83	—	—	83
Depreciation and amortization		261	34	224	519
		3,001	245	910	4,156
Operating income (loss)		720	(15)	(44)	661
Other income (expense):
Interest expense		(211)	(14)	(101)	(326)
Share of earnings (losses) of affiliates, net		(11)	9	16	14
Realized and unrealized gains (losses) on financial instruments, net		16	(4)	(197)	(185)
Unrealized gains (losses) on intergroup interest (note 1)		—	(28)	28	—
Other, net		9	1	19	29
		(197)	(36)	(235)	(468)
Earnings (loss) before income taxes		523	(51)	(279)	193
Income tax (expense) benefit		(188)	6	54	(128)
Net earnings (loss)		335	(45)	(225)	65
Less net earnings (loss) attributable to the noncontrolling interests		107	—	—	107
Net earnings (loss) attributable to Liberty stockholders	$	228	(45)	(225)	(42)

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2018

(unaudited)


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
SIRIUS XM Holdings revenue	$	2,807	—	—	2,807
Formula 1 revenue		—	—	699	699
Other revenue		—	210	—	210
Total revenue		2,807	210	699	3,716
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		714	—	—	714
Programming and content		206	—	—	206
Customer service and billing		189	—	—	189
Other		62	—	—	62
Cost of Formula 1 revenue		—	—	495	495
Subscriber acquisition costs		242	—	—	242
Other operating expenses		58	141	—	199
Selling, general and administrative		426	46	89	561
Depreciation and amortization		181	39	227	447
		2,078	226	811	3,115
Operating income (loss)		729	(16)	(112)	601
Other income (expense):
Interest expense		(196)	(13)	(94)	(303)
Share of earnings (losses) of affiliates, net		—	6	8	14
Realized and unrealized gains (losses) on financial instruments, net		120	—	91	211
Unrealized gains (losses) on intergroup interest (note 1)		—	(33)	33	—
Other, net		17	2	8	27
		(59)	(38)	46	(51)
Earnings (loss) before income taxes		670	(54)	(66)	550
Income tax (expense) benefit		(140)	(1)	59	(82)
Net earnings (loss)		530	(55)	(7)	468
Less net earnings (loss) attributable to the noncontrolling interests		165	(1)	1	165
Net earnings (loss) attributable to Liberty stockholders	$	365	(54)	(8)	303

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 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)	$	335	(45)	(225)	65
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		261	34	224	519
Stock-based compensation		138	9	15	162
Share of (earnings) loss of affiliates, net		11	(9)	(16)	(14)
Unrealized (gains) losses on intergroup interest, net		—	28	(28)	—
Realized and unrealized (gains) losses on financial instruments, net		(16)	4	197	185
Noncash interest expense (benefit)		2	—	1	3
Deferred income tax expense (benefit)		178	—	(63)	115
Intergroup tax allocation		(1)	(6)	7	—
Intergroup tax (payments) receipts		(2)	22	(20)	—
Other charges (credits), net		2	5	(7)	—
Changes in operating assets and liabilities
Current and other assets		(14)	(34)	(35)	(83)
Payables and other liabilities		15	56	149	220
Net cash provided (used) by operating activities		909	64	199	1,172
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(9)	(5)	(6)	(20)
Cash proceeds from sale of investments		373	—	—	373
Cash received from Pandora acquisition		313	—	—	313
Capital expended for property and equipment		(160)	(50)	(11)	(221)
Sales of short term investments and other marketable securities		72	—	—	72
Other investing activities, net		(1)	—	(4)	(5)
Net cash provided (used) by investing activities		588	(55)	(21)	512
Cash flows from financing activities:
Borrowings of debt		2,878	1	—	2,879
Repayments of debt		(2,360)	(24)	(3)	(2,387)
Series C Liberty SiriusXM stock repurchases		(306)	—	—	(306)
Subsidiary shares repurchased by subsidiary		(1,474)	—	—	(1,474)
Cash dividends paid by subsidiary		(36)	—	—	(36)
Taxes paid in lieu of shares issued for stock-based compensation		(50)	—	(7)	(57)
Other financing activities, net		(3)	(7)	6	(4)
Net cash provided (used) by financing activities		(1,351)	(30)	(4)	(1,385)
Net increase (decrease) in cash, cash equivalents and restricted cash		146	(21)	174	299
Cash, cash equivalents and restricted cash at beginning of period		102	190	160	452
Cash, cash equivalents and restricted cash at end of period	$	248	169	334	751

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 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)	$	530	(55)	(7)	468
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		181	39	227	447
Stock-based compensation		82	5	12	99
Share of (earnings) loss of affiliates, net		—	(6)	(8)	(14)
Unrealized (gains) losses on intergroup interest, net		—	33	(33)	—
Realized and unrealized (gains) losses on financial instruments, net		(120)	—	(91)	(211)
Noncash interest expense (benefit)		(8)	2	—	(6)
Deferred income tax expense (benefit)		123	(2)	(49)	72
Intergroup tax allocation		1	3	(4)	—
Other charges (credits), net		—	14	2	16
Changes in operating assets and liabilities
Current and other assets		1	(3)	(97)	(99)
Payables and other liabilities		163	37	296	496
Net cash provided (used) by operating activities		953	67	248	1,268
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(395)	—	(4)	(399)
Cash proceeds from sale of investments		—	—	243	243
Capital expended for property and equipment		(174)	(14)	(3)	(191)
Other investing activities, net		3	36	8	47
Net cash provided (used) by investing activities		(566)	22	244	(300)
Cash flows from financing activities:
Borrowings of debt		1,171	123	289	1,583
Repayments of debt		(1,388)	(180)	(850)	(2,418)
Series C Liberty SiriusXM stock repurchases		(218)	—	—	(218)
Subsidiary shares repurchased by subsidiary		(334)	—	—	(334)
Cash dividends paid by subsidiary		(29)	—	—	(29)
Taxes paid in lieu of shares issued for stock-based compensation		(79)	—	(2)	(81)
Other financing activities, net		50	—	(4)	46
Net cash provided (used) by financing activities		(827)	(57)	(567)	(1,451)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		—	—	(1)	(1)
Net increase (decrease) in cash, cash equivalents and restricted cash		(440)	32	(76)	(484)
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	$	185	172	206	563