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, 2022

Condensed Balance Sheets

BALANCE SHEET INFORMATION

June 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	$	494	207	1,944	—	2,645
Trade and other receivables, net		660	74	89	—	823
Other current assets		348	81	229	—	658
Total current assets		1,502	362	2,262	—	4,126
Intergroup interests (note 1)		363	—	163	(526)	—
Investments in affiliates, accounted for using the equity method (note 1)		823	115	28	—	966

Property and equipment, at cost		2,886	1,002	451	—	4,339
Accumulated depreciation		(1,768)	(254)	(91)	—	(2,113)
		1,118	748	360	—	2,226

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		1,190	20	3,335	—	4,545
Other assets		1,105	64	1,466	(45)	2,590
Total assets	$	31,152	1,609	11,570	(571)	43,760

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 3)	$	7	(9)	2	—	—
Accounts payable and accrued liabilities		1,372	71	271	—	1,714
Current portion of debt		387	80	444	—	911
Deferred revenue		1,432	131	426	—	1,989
Other current liabilities		66	4	25	—	95
Total current liabilities		3,264	277	1,168	—	4,709
Long-term debt (note 1)		13,516	519	2,936	—	16,971
Deferred income tax liabilities		2,240	58	—	(45)	2,253
Redeemable intergroup interests (note 1)		—	221	305	(526)	—
Other liabilities		565	177	152	—	894
Total liabilities		19,585	1,252	4,561	(571)	24,827
Redeemable noncontrolling interests in equity of subsidiary		—	—	576	—	576
Equity / Attributed net assets		8,411	357	6,408	—	15,176
Noncontrolling interests in equity of subsidiaries		3,156	—	25	—	3,181
Total liabilities and equity	$	31,152	1,609	11,570	(571)	43,760

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2022

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	2,254	—	—	2,254
Formula 1 revenue		—	—	744	744
Other revenue		—	260	—	260
Total revenue		2,254	260	744	3,258
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		711	—	—	711
Programming and content		152	—	—	152
Customer service and billing		126	—	—	126
Other		58	—	—	58
Cost of Formula 1 revenue		—	—	534	534
Subscriber acquisition costs		91	—	—	91
Other operating expenses		72	175	—	247
Selling, general and administrative		419	33	68	520
Impairment, restructuring and acquisition costs, net of recoveries		1	—	—	1
Depreciation and amortization		152	17	93	262
		1,782	225	695	2,702
Operating income (loss)		472	35	49	556
Other income (expense):
Interest expense		(125)	(6)	(30)	(161)
Share of earnings (losses) of affiliates, net		54	8	(1)	61
Realized and unrealized gains (losses) on financial instruments, net		296	1	83	380
Unrealized gains (losses) on intergroup interests (note 1)		(35)	35	—	—
Other, net		4	1	17	22
		194	39	69	302
Earnings (loss) before income taxes		666	74	118	858
Income tax (expense) benefit		(168)	(10)	(6)	(184)
Net earnings (loss)		498	64	112	674
Less net earnings (loss) attributable to the noncontrolling interests		51	—	2	53
Less net earnings (loss) attributable to redeemable noncontrolling interest		—	—	(1)	(1)
Net earnings (loss) attributable to Liberty stockholders	$	447	64	111	622

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 Sirius XM Holdings 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, net of recoveries		(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
Net earnings (loss) attributable to Liberty stockholders	$	337	25	55	417

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2022

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	4,440	—	—	4,440
Formula 1 revenue		—	—	1,104	1,104
Other revenue		—	283	—	283
Total revenue		4,440	283	1,104	5,827
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		1,381	—	—	1,381
Programming and content		292	—	—	292
Customer service and billing		251	—	—	251
Other		112	—	—	112
Cost of Formula 1 revenue		—	—	729	729
Subscriber acquisition costs		181	—	—	181
Other operating expenses		139	198	—	337
Selling, general and administrative		823	55	124	1,002
Impairment, restructuring and acquisition costs, net of recoveries		1	—	—	1
Depreciation and amortization		304	35	183	522
		3,484	288	1,036	4,808
Operating income (loss)		956	(5)	68	1,019
Other income (expense):
Interest expense		(247)	(12)	(59)	(318)
Share of earnings (losses) of affiliates, net		36	12	(1)	47
Realized and unrealized gains (losses) on financial instruments, net		357	6	76	439
Unrealized gains (losses) on intergroup interest (note 1)		(15)	36	(21)	—
Other, net		24	21	22	67
		155	63	17	235
Earnings (loss) before income taxes		1,111	58	85	1,254
Income tax (expense) benefit		(269)	(7)	(8)	(284)
Net earnings (loss)		842	51	77	970
Less net earnings (loss) attributable to the noncontrolling interests		107	—	11	118
Less net earnings (loss) attributable to redeemable noncontrolling interest		—	—	(10)	(10)
Net earnings (loss) attributable to Liberty stockholders	$	735	51	76	862

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 Sirius XM Holdings 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, net of recoveries		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)
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 interests (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

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 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)	$	842	51	77	970
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		304	35	183	522
Stock-based compensation		99	6	7	112
Share of (earnings) loss of affiliates, net		(36)	(12)	1	(47)
Unrealized (gains) losses on intergroup interests, net		15	(36)	21	—
Realized and unrealized (gains) losses on financial instruments, net		(357)	(6)	(76)	(439)
Deferred income tax expense (benefit)		161	(6)	26	181
Intergroup tax allocation		65	13	(78)	—
Intergroup tax (payments) receipts		(42)	9	33	—
Other charges (credits), net		(13)	(11)	(10)	(34)
Changes in operating assets and liabilities
Current and other assets		11	(8)	(117)	(114)
Payables and other liabilities		(162)	65	167	70
Net cash provided (used) by operating activities		887	100	234	1,221
Cash flows from investing activities:
Investments in equity method affiliates and debt and equity securities		(1)	(5)	(3)	(9)
Cash proceeds from dispositions		50	47	51	148
Cash (paid) received for acquisitions, net of cash acquired		(137)	—	—	(137)
Capital expended for property and equipment, including internal-use software and website development		(196)	(8)	(251)	(455)
Other investing activities, net		4	—	74	78
Net cash provided (used) by investing activities		(280)	34	(129)	(375)
Cash flows from financing activities:
Borrowings of debt		2,634	40	—	2,674
Repayments of debt		(2,320)	(138)	(243)	(2,701)
Liberty stock repurchases		(319)	—	(37)	(356)
Subsidiary shares repurchased by subsidiary		(415)	—	—	(415)
Cash dividends paid by subsidiary		(217)	—	—	(217)
Taxes paid in lieu of shares issued for stock-based compensation		(71)	—	26	(45)
Other financing activities, net		(3)	(7)	27	17
Net cash provided (used) by financing activities		(711)	(105)	(227)	(1,043)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		—	—	(8)	(8)
Net increase (decrease) in cash, cash equivalents and restricted cash		(104)	29	(130)	(205)
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	$	502	273	1,944	2,719

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 (loss) 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)
Cash proceeds from dispositions		—	2	167	169
Cash (paid) received for 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	—	37	41
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 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