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, 2021

Condensed Balance Sheet

BALANCE SHEET INFORMATION

June 30, 2021

(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	$	1,542	168	2,225	—	3,935
Trade and other receivables, net		655	55	113	—	823
Other current assets		350	64	189	—	603
Total current assets		2,547	287	2,527	—	5,361
Intergroup interests (note 1)		289	—	189	(478)	—
Investments in affiliates, accounted for using the equity method (note 1)		746	102	33	—	881

Property and equipment, at cost		2,699	997	203	—	3,899
Accumulated depreciation		(1,617)	(206)	(83)	—	(1,906)
		1,082	791	120	—	1,993

Intangible assets not subject to amortization
Goodwill		15,110	180	3,957	—	19,247
FCC licenses		8,600	—	—	—	8,600
Other		1,242	143	—	—	1,385
		24,952	323	3,957	—	29,232
Intangible assets subject to amortization, net		1,368	21	3,696	—	5,085
Other assets		1,556	81	1,507	(42)	3,102
Total assets	$	32,540	1,605	12,029	(520)	45,654

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 3)	$	(22)	(33)	55	—	—
Accounts payable and accrued liabilities		1,294	65	208	—	1,567
Current portion of debt		1,515	12	26	—	1,553
Deferred revenue		1,583	103	525	—	2,211
Other current liabilities		68	6	35	—	109
Total current liabilities		4,438	153	849	—	5,440
Long-term debt (note 1)		13,155	679	3,586	—	17,420
Deferred income tax liabilities		2,150	48	—	(42)	2,156
Redeemable intergroup interests (note 1)		—	253	225	(478)	—
Other liabilities		638	211	206	—	1,055
Total liabilities		20,381	1,344	4,866	(520)	26,071
Redeemable noncontrolling interests in equity of subsidiary		—	—	575	—	575
Equity / Attributed net assets		8,062	261	6,565	—	14,888
Noncontrolling interests in equity of subsidiaries		4,097	—	23	—	4,120
Total liabilities and equity	$	32,540	1,605	12,029	(520)	45,654

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2021

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	2,159	—	—	2,159
Formula 1 revenue		—	—	501	501
Other revenue		—	216	—	216
Total revenue		2,159	216	501	2,876
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		663	—	—	663
Programming and content		135	—	—	135
Customer service and billing		127	—	—	127
Other		58	—	—	58
Cost of Formula 1 revenue		—	—	398	398
Subscriber acquisition costs		89	—	—	89
Other operating expenses		66	142	—	208
Selling, general and administrative		374	24	47	445
Impairment, restructuring and acquisition costs		(137)	—	—	(137)
Depreciation and amortization		150	19	99	268
		1,525	185	544	2,254
Operating income (loss)		634	31	(43)	622
Other income (expense):
Interest expense		(123)	(6)	(29)	(158)
Share of earnings (losses) of affiliates, net		(70)	8	14	(48)
Realized and unrealized gains (losses) on financial instruments, net		86	(1)	70	155
Unrealized gains (losses) on intergroup interests (note 1)		22	1	(23)	—
Other, net		8	1	4	13
		(77)	3	36	(38)
Earnings (loss) before income taxes		557	34	(7)	584
Income tax (expense) benefit		(125)	(9)	78	(56)
Net earnings (loss)		432	25	71	528
Less net earnings (loss) attributable to the noncontrolling interests		95	—	16	111
Less net earnings (loss) attributable to redeemable noncontrolling interest		—	—	—	—
Net earnings (loss) attributable to Liberty stockholders	$	337	25	55	417

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2020

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	1,874	—	—	1,874
Formula 1 revenue		—	—	24	24
Other revenue		—	11	—	11
Total revenue		1,874	11	24	1,909
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		587	—	—	587
Programming and content		110	—	—	110
Customer service and billing		122	—	—	122
Other		47	—	—	47
Cost of Formula 1 revenue		—	—	16	16
Subscriber acquisition costs		48	—	—	48
Other operating expenses		61	24	—	85
Selling, general and administrative		350	—	40	390
Acquisition and restructuring		24	—	—	24
Depreciation and amortization		142	20	104	266
		1,491	44	160	1,695
Operating income (loss)		383	(33)	(136)	214
Other income (expense):
Interest expense		(120)	(6)	(37)	(163)
Intergroup interest (expense) income		(7)	—	7	—
Share of earnings (losses) of affiliates, net		(146)	(1)	(46)	(193)
Realized and unrealized gains (losses) on financial instruments, net		(184)	(1)	5	(180)
Unrealized gains (losses) on intergroup interests (note 1)		36	(7)	(29)	—
Other, net		4	1	9	14
		(417)	(14)	(91)	(522)
Earnings (loss) before income taxes		(34)	(47)	(227)	(308)
Income tax (expense) benefit		10	9	27	46
Net earnings (loss)		(24)	(38)	(200)	(262)
Less net earnings (loss) attributable to the noncontrolling interests		64	—	—	64
Net earnings (loss) attributable to Liberty stockholders	$	(88)	(38)	(200)	(326)

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2021

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	4,217	—	—	4,217
Formula 1 revenue		—	—	681	681
Other revenue		—	232	—	232
Total revenue		4,217	232	681	5,130
Operating costs and expenses, including stock-based compensation (note 2):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		1,303	—	—	1,303
Programming and content		265	—	—	265
Customer service and billing		244	—	—	244
Other		110	—	—	110
Cost of Formula 1 revenue		—	—	482	482
Subscriber acquisition costs		175	—	—	175
Other operating expenses		130	162	—	292
Selling, general and administrative		720	45	90	855
Impairment, restructuring and acquisition costs		108	—	—	108
Depreciation and amortization		299	34	199	532
		3,354	241	771	4,366
Operating income (loss)		863	(9)	(90)	764
Other income (expense):
Interest expense		(243)	(12)	(61)	(316)
Intergroup interest (expense) income		—	—	—	—
Share of earnings (losses) of affiliates, net		(183)	11	29	(143)
Realized and unrealized gains (losses) on financial instruments, net		—	1	105	106
Unrealized gains (losses) on intergroup interest (note 1)		32	(27)	(5)	—
Other, net		19	—	9	28
		(375)	(27)	77	(325)
Earnings (loss) before income taxes		488	(36)	(13)	439
Income tax (expense) benefit		(18)	2	91	75
Net earnings (loss)		470	(34)	78	514
Less net earnings (loss) attributable to the noncontrolling interests		144	—	16	160
Less net earnings (loss) attributable to redeemable noncontrolling interest		—	—	53	53
Net earnings (loss) attributable to Liberty stockholders	$	326	(34)	9	301

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2020

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	3,826	—	—	3,826
Formula 1 revenue		—	—	63	63
Other revenue		—	33	—	33
Total revenue		3,826	33	63	3,922
Operating costs and expenses, including stock-based compensation (note 2):
Cost of services (exclusive of depreciation shown separately below):
Revenue share and royalties		1,157	—	—	1,157
Programming and content		228	—	—	228
Customer service and billing		240	—	—	240
Other		91	—	—	91
Cost of Formula 1 revenue		—	—	59	59
Subscriber acquisition costs		147	—	—	147
Other operating expenses		132	53	—	185
Selling, general and administrative		692	22	84	798
Acquisition and restructuring		24	—	—	24
Depreciation and amortization		290	35	208	533
		3,001	110	351	3,462
Operating income (loss)		825	(77)	(288)	460
Other income (expense):
Interest expense		(231)	(13)	(83)	(327)
Intergroup interest (expense) income		(7)	—	7	—
Share of earnings (losses) of affiliates, net		(148)	3	(110)	(255)
Realized and unrealized gains (losses) on financial instruments, net		(189)	(10)	20	(179)
Unrealized gains (losses) on intergroup interests (note 1)		67	88	(155)	—
Other, net		17	—	14	31
		(491)	68	(307)	(730)
Earnings (loss) before income taxes		334	(9)	(595)	(270)
Income tax (expense) benefit		(66)	24	52	10
Net earnings (loss)		268	15	(543)	(260)
Less net earnings (loss) attributable to the noncontrolling interests		142	—	—	142
Net earnings (loss) attributable to Liberty stockholders	$	126	15	(543)	(402)

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 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)	$	470	(34)	78	514
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		299	34	199	532
Stock-based compensation		104	6	13	123
Non-cash impairment and restructuring costs		245	—	—	245
Share of (earnings) loss of affiliates, net		183	(11)	(29)	143
Unrealized (gains) losses on intergroup interests, net		(32)	27	5	—
Realized and unrealized (gains) losses on financial instruments, net		—	(1)	(105)	(106)
Deferred income tax expense (benefit)		(13)	(3)	(85)	(101)
Intergroup tax allocation		2	2	(4)	—
Other charges (credits), net		(2)	3	2	3
Changes in operating assets and liabilities
Current and other assets		(90)	2	(88)	(176)
Payables and other liabilities		(291)	23	326	58
Net cash provided (used) by operating activities		875	48	312	1,235
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(61)	—	(124)	(185)
Investment of subsidiary initial public offering proceeds into trust account		—	—	(575)	(575)
Return of investment in equity method affiliates		—	—	38	38
Cash proceeds from sale of investments		—	2	167	169
Cash (paid) received from acquisitions, net of cash acquired		(14)	—	—	(14)
Capital expended for property and equipment, including internal-use software and website development		(164)	(19)	(7)	(190)
Other investing activities, net		4	—	(1)	3
Net cash provided (used) by investing activities		(235)	(17)	(502)	(754)
Cash flows from financing activities:
Borrowings of debt		3,722	72	—	3,794
Repayments of debt		(2,270)	(53)	(190)	(2,513)
Liberty SiriusXM stock repurchases		(243)	—	—	(243)
Subsidiary shares repurchased by subsidiary		(856)	—	—	(856)
Cash dividends paid by subsidiary		(28)	—	—	(28)
Taxes paid in lieu of shares issued for stock-based compensation		(44)	—	(1)	(45)
Proceeds from initial public offering of subsidiary		—	—	575	575
Settlement of intergroup call spread		(384)	—	384	—
Other financing activities, net		5	(4)	(35)	(34)
Net cash provided (used) by financing activities		(98)	15	733	650
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		—	—	(2)	(2)
Net increase (decrease) in cash, cash equivalents and restricted cash		542	46	541	1,129
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	$	1,550	231	2,225	4,006

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 30, 2020

(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)	$	268	15	(543)	(260)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		290	35	208	533
Stock-based compensation		112	(12)	12	112
Non-cash impairment and restructuring costs		24	—	—	24
Share of (earnings) loss of affiliates, net		148	(3)	110	255
Unrealized (gains) losses on intergroup interests, net		(67)	(88)	155	—
Realized and unrealized (gains) losses on financial instruments, net		189	10	(20)	179
Deferred income tax expense (benefit)		29	(16)	(47)	(34)
Intergroup tax allocation		(1)	(8)	9	—
Other charges (credits), net		7	3	—	10
Changes in operating assets and liabilities
Current and other assets		204	6	(450)	(240)
Payables and other liabilities		(236)	59	467	290
Net cash provided (used) by operating activities		967	1	(99)	869
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(86)	—	(1)	(87)
Return of investment in equity method affiliates		—	—	105	105
Cash proceeds from sale of investments		—	—	13	13
Cash (paid) received for acquisitions, net of cash acquired		(28)	—	—	(28)
Capital expended for property and equipment, including internal-use software and website development		(149)	(43)	(14)	(206)
Other investing activities, net		(2)	4	(2)	—
Net cash provided (used) by investing activities		(265)	(39)	101	(203)
Cash flows from financing activities:
Borrowings of debt		2,117	196	522	2,835
Repayments of debt		(238)	(37)	(609)	(884)
Intergroup Loan (repayment) borrowing		(750)	—	750	—
Liberty SiriusXM stock repurchases		(69)	—	(69)	(138)
Subsidiary shares repurchased by subsidiary		(399)	—	—	(399)
Reattribution between Liberty SiriusXM Group and Liberty Formula One Group		(608)	—	608	—
Proceeds from Liberty SiriusXM common stock rights offering		754	—	—	754
Cash dividends paid by subsidiary		(33)	—	—	(33)
Taxes paid in lieu of shares issued for stock-based compensation		(44)	—	(2)	(46)
Other financing activities, net		(4)	(4)	(12)	(20)
Net cash provided (used) by financing activities		726	155	1,188	2,069
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		—	—	(10)	(10)
Net increase (decrease) in cash, cash equivalents and restricted cash		1,428	117	1,180	2,725
Cash, cash equivalents and restricted cash at beginning of period		507	212	587	1,306
Cash, cash equivalents and restricted cash at end of period	$	1,935	329	1,767	4,031