Liberty Media Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Financial Information for Tracking Stock Groups (Tables)

Financial Information for Tracking Stock Groups (Tables)

12 Months Ended

Dec. 31, 2022

Condensed Balance Sheets

BALANCE SHEET INFORMATION

December 31, 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	$	362	151	1,733	—	2,246
Trade and other receivables, net		669	45	123	—	837
Other current assets		523	78	167	—	768
Total current assets		1,554	274	2,023	—	3,851
Intergroup interests (note 1)		282	—	219	(501)	—
Investments in affiliates, accounted for using the equity method (note 1)		823	95	34	—	952

Property and equipment, at cost		2,957	1,008	516	—	4,481
Accumulated depreciation		(1,840)	(278)	(108)	—	(2,226)
		1,117	730	408	—	2,255

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		1,101	24	3,163	—	4,288
Other assets		551	54	1,213	(7)	1,811
Total assets	$	30,479	1,477	11,016	(508)	42,464

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 4)	$	7	(7)	—	—	—
Accounts payable and accrued liabilities		1,405	55	396	—	1,856
Current portion of debt (note 1)		1,543	75	61	—	1,679
Deferred revenue		1,321	105	347	—	1,773
Other current liabilities		68	5	29	—	102
Total current liabilities		4,344	233	833	—	5,410
Long-term debt (note 1)		11,600	467	2,886	—	14,953
Deferred income tax liabilities (note 3)		2,054	54	—	(7)	2,101
Redeemable intergroup interests (note 1)		—	278	223	(501)	—
Other liabilities		584	151	139	—	874
Total liabilities		18,582	1,183	4,081	(508)	23,338
Equity / Attributed net assets		8,759	294	6,910	—	15,963
Noncontrolling interests in equity of subsidiaries		3,138	—	25	—	3,163
Total liabilities and equity	$	30,479	1,477	11,016	(508)	42,464

BALANCE SHEET INFORMATION

December 31, 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	$	598	142	2,074	—	2,814
Trade and other receivables, net		722	40	66	—	828
Other current assets		793	148	229	—	1,170
Total current assets		2,113	330	2,369	—	4,812
Intergroup interests (note 1)		379	—	191	(570)	—
Investments in affiliates, accounted for using the equity method (note 1)		805	110	30	—	945

Property and equipment, at cost		2,811	1,008	208	—	4,027
Accumulated depreciation		(1,697)	(231)	(89)	—	(2,017)
		1,114	777	119	—	2,010

Intangible assets not subject to amortization
Goodwill		15,111	180	3,957	—	19,248
FCC licenses		8,600	—	—	—	8,600
Other		1,242	143	—	—	1,385
		24,953	323	3,957	—	29,233
Intangible assets subject to amortization, net		1,269	21	3,507	—	4,797
Other assets		1,041	75	1,491	(53)	2,554
Total assets	$	31,674	1,636	11,664	(623)	44,351

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 4)	$	14	(31)	17	—	—
Accounts payable and accrued liabilities		1,458	66	308	—	1,832
Current portion of debt (note 1)		2,184	12	695	—	2,891
Deferred revenue		1,454	83	253	—	1,790
Other current liabilities		68	6	23	—	97
Total current liabilities		5,178	136	1,296	—	6,610
Long-term debt (note 1)		12,078	685	2,936	—	15,699
Deferred income tax liabilities (note 3)		2,206	65	—	(53)	2,218
Redeemable intergroup interests (note 1)		—	257	313	(570)	—
Other liabilities		611	197	179	—	987
Total liabilities		20,073	1,340	4,724	(623)	25,514
Redeemable noncontrolling interests in equity of subsidiary		—	—	575	—	575
Equity / Attributed net assets		8,036	296	6,340	—	14,672
Noncontrolling interests in equity of subsidiaries		3,565	—	25	—	3,590
Total liabilities and equity	$	31,674	1,636	11,664	(623)	44,351

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

December 31, 2022

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	9,003	—	—	9,003
Formula 1 revenue		—	—	2,573	2,573
Other revenue		—	588	—	588
Total revenue		9,003	588	2,573	12,164
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		2,802	—	—	2,802
Programming and content		604	—	—	604
Customer service and billing		497	—	—	497
Other		227	—	—	227
Cost of Formula 1 revenue (exclusive of depreciation shown separately below)		—	—	1,750	1,750
Subscriber acquisition costs		352	—	—	352
Other operating expenses		285	434	—	719
Selling, general and administrative		1,638	105	288	2,031
Impairment, restructuring and acquisition costs, net of recoveries		68	6	—	74
Depreciation and amortization		611	71	362	1,044
		7,084	616	2,400	10,100
Operating income (loss)		1,919	(28)	173	2,064
Other income (expense):
Interest expense		(511)	(29)	(149)	(689)
Share of earnings (losses) of affiliates, net		67	32	—	99
Unrealized gain/(loss) on intergroup interests		(19)	(35)	54	—
Realized and unrealized gains (losses) on financial instruments, net		471	13	115	599
Gains (losses) on dilution of investment in affiliate		10	—	—	10
Other, net		32	20	58	110
		50	1	78	129
Earnings (loss) before income taxes		1,969	(27)	251	2,193
Income tax (expense) benefit (note 3)		(467)	(8)	311	(164)
Net earnings (loss)		1,502	(35)	562	2,029
Less net earnings (loss) attributable to the noncontrolling interests		210	—	17	227
Less net earnings (loss) attributable to the redeemable noncontrolling interests		—	—	(13)	(13)
Net earnings (loss) attributable to Liberty stockholders	$	1,292	(35)	558	1,815

STATEMENT OF OPERATIONS INFORMATION

December 31, 2021

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	8,696	—	—	8,696
Formula 1 revenue		—	—	2,136	2,136
Other revenue		—	568	—	568
Total revenue		8,696	568	2,136	11,400
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		2,672	—	—	2,672
Programming and content		559	—	—	559
Customer service and billing		501	—	—	501
Other		236	—	—	236
Cost of Formula 1 revenue (exclusive of depreciation shown separately below)		—	—	1,489	1,489
Subscriber acquisition costs		325	—	—	325
Other operating expenses		265	377	—	642
Selling, general and administrative		1,598	99	210	1,907
Impairment, restructuring and acquisition costs, net of recoveries		20	—	—	20
Depreciation and amortization		603	72	397	1,072
		6,779	548	2,096	9,423
Operating income (loss)		1,917	20	40	1,977
Other income (expense):
Interest expense		(495)	(24)	(123)	(642)
Share of earnings (losses) of affiliates, net		(253)	30	23	(200)
Unrealized gain/(loss) on intergroup interests		121	(31)	(90)	—
Realized and unrealized gains (losses) on financial instruments, net		(433)	3	(21)	(451)
Gains (losses) on dilution of investment in affiliate		152	—	—	152
Other, net		(60)	(1)	14	(47)
		(968)	(23)	(197)	(1,188)
Earnings (loss) before income taxes		949	(3)	(157)	789
Income tax (expense) benefit (note 3)		(74)	(8)	37	(45)
Net earnings (loss)		875	(11)	(120)	744
Less net earnings (loss) attributable to the noncontrolling interests		276	—	16	292
Less net earnings (loss) attributable to the redeemable noncontrolling interests		—	—	54	54
Net earnings (loss) attributable to Liberty stockholders	$	599	(11)	(190)	398

STATEMENT OF OPERATIONS INFORMATION

December 31, 2020

(unaudited)


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

	amounts in millions
Revenue:
Sirius XM Holdings revenue	$	8,040	—	—	8,040
Formula 1 revenue		—	—	1,145	1,145
Other revenue		—	178	—	178
Total revenue		8,040	178	1,145	9,363
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		2,421	—	—	2,421
Programming and content		481	—	—	481
Customer service and billing		481	—	—	481
Other		196	—	—	196
Cost of Formula 1 revenue (exclusive of depreciation shown separately below)		—	—	974	974
Subscriber acquisition costs		362	—	—	362
Other operating expenses		264	170	—	434
Selling, general and administrative		1,509	67	174	1,750
Impairment, restructuring and acquisition costs, net of recoveries		1,004	—	—	1,004
Depreciation and amortization		573	69	441	1,083
		7,291	306	1,589	9,186
Operating income (loss)		749	(128)	(444)	177
Other income (expense):
Interest expense		(462)	(26)	(146)	(634)
Intergroup interest income (expense)		(7)	—	7	—
Share of earnings (losses) of affiliates, net		(484)	6	(108)	(586)
Unrealized gain/(loss) on inter-group interests		125	42	(167)	—
Realized and unrealized gains (losses) on financial instruments, net		(521)	(10)	129	(402)
Gains (losses) on dilution of investment in affiliate		4	—	—	4
Other, net		(17)	—	23	6
		(1,362)	12	(262)	(1,612)
Earnings (loss) before income taxes		(613)	(116)	(706)	(1,435)
Income tax (expense) benefit (note 3)		(106)	38	112	44
Net earnings (loss)		(719)	(78)	(594)	(1,391)
Less net earnings (loss) attributable to the noncontrolling interests		28	—	2	30
Net earnings (loss) attributable to Liberty stockholders	$	(747)	(78)	(596)	(1,421)

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

December 31, 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)	$	1,502	(35)	562	2,029
Adjustments to reconcile net earnings to net cash provided by operating activities:			.
Depreciation and amortization		611	71	362	1,044
Stock-based compensation		209	12	16	237
Non-cash impairment and restructuring costs		65	5	—	70
Share of (earnings) loss of affiliates, net		(67)	(32)	—	(99)
Unrealized (gains) losses on intergroup interests, net		19	35	(54)	—
Realized and unrealized (gains) losses on financial instruments, net		(471)	(13)	(115)	(599)
Noncash interest expense		19	2	5	26
Losses (gains) on dilution of investment in affiliate		(10)	—	—	(10)
Loss (gain) on early extinguishment of debt		(21)	—	(14)	(35)
Deferred income tax expense (benefit)		329	(10)	(306)	13
Intergroup tax allocation		91	18	(109)	—
Intergroup tax (payments) receipts		(80)	8	72	—
Other charges (credits), net		10	1	(1)	10
Changes in operating assets and liabilities
Current and other assets		80	(10)	(87)	(17)
Payables and other liabilities		(327)	1	203	(123)
Net cash provided (used) by operating activities		1,959	53	534	2,546
Cash flows from investing activities:
Subsidiary initial public offering proceeds returned from (invested in) trust account		—	—	579	579
Cash proceeds from dispositions of investments		66	48	53	167
Cash (paid) received for acquisitions, net of cash acquired		(136)	—	—	(136)
Investments in equity method affiliates and debt and equity securities		(1)	(5)	(52)	(58)
Return of investment in equity method affiliates		1	28	9	38
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities		2	—	—	2
Capital expended for property and equipment, including internal-use software and website development		(426)	(18)	(291)	(735)
Other investing activities, net		1	—	96	97
Net cash provided (used) by investing activities		(493)	53	394	(46)
Cash flows from financing activities:
Borrowings of debt		3,150	155	2,884	6,189
Repayments of debt		(3,553)	(309)	(3,564)	(7,426)
Repayment of initial public offering proceeds to subsidiary shareholders		—	—	(579)	(579)
Intergroup (repayments) borrowings		78	(14)	(64)	—
Liberty stock repurchases		(358)	—	(37)	(395)
Subsidiary shares repurchased by subsidiary		(647)	—	—	(647)
Cash dividends paid by subsidiary		(249)	—	—	(249)
Taxes paid in lieu of shares issued for stock-based compensation		(147)	—	24	(123)
Other financing activities, net		24	(9)	67	82
Net cash provided (used) by financing activities		(1,702)	(177)	(1,269)	(3,148)
Net increase (decrease) in cash, cash equivalents and restricted cash		(236)	(71)	(341)	(648)
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	$	370	173	1,733	2,276

STATEMENT OF CASH FLOWS INFORMATION

December 31, 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)	$	875	(11)	(120)	744
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		603	72	397	1,072
Stock-based compensation		215	12	29	256
Non-cash impairment and restructuring costs		24	—	—	24
Share of (earnings) loss of affiliates, net		253	(30)	(23)	200
Unrealized (gains) losses on intergroup interests, net		(121)	31	90	—
Realized and unrealized (gains) losses on financial instruments, net		433	(3)	21	451
Noncash interest expense		15	—	1	16
Losses (gains) on dilution of investment in affiliate		(152)	—	—	(152)
Loss (gain) on early extinguishment of debt		83	—	(3)	80
Deferred income tax expense (benefit)		(12)	12	(41)	(41)
Intergroup tax allocation		9	(4)	(5)	—
Intergroup tax (payments) receipts		(2)	7	(5)	—
Other charges (credits), net		(15)	20	(3)	2
Changes in operating assets and liabilities
Current and other assets		(59)	(43)	(2)	(104)
Payables and other liabilities		(255)	(1)	145	(111)
Net cash provided (used) by operating activities		1,894	62	481	2,437
Cash flows from investing activities:
Subsidiary initial public offering proceeds returned from (invested in) trust account		—	—	(575)	(575)
Cash proceeds from dispositions of investments		177	2	204	383
Cash (paid) received for acquisitions, net of cash acquired		(14)	—	—	(14)
Investments in equity method affiliates and debt and equity securities		(73)	—	(179)	(252)
Return of investment in equity method affiliates		1	—	39	40
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities		12	—	—	12
Capital expended for property and equipment, including internal-use software and website development		(388)	(35)	(17)	(440)
Proceeds from insurance recoveries		225	—	—	225
Other investing activities, net		(4)	8	(72)	(68)
Net cash provided (used) by investing activities		(64)	(25)	(600)	(689)
Cash flows from financing activities:
Borrowings of debt		6,294	117	—	6,411
Repayments of debt		(5,872)	(93)	(322)	(6,287)
Liberty stock repurchases		(500)	—	(55)	(555)
Subsidiary shares repurchased by subsidiary		(1,523)	—	—	(1,523)
Proceeds from initial public offering of subsidiary		—	—	575	575
Cash dividends paid by subsidiary		(58)	—	—	(58)
Taxes paid in lieu of shares issued for stock-based compensation		(106)	—	(48)	(154)
Settlement of intergroup call spread		(384)	—	384	—
Other financing activities, net		(83)	(2)	(22)	(107)
Net cash provided (used) by financing activities		(2,232)	22	512	(1,698)
Effect of foreign exchange rates on cash, cash equivalents and restricted cash		—	—	(3)	(3)
Net increase (decrease) in cash, cash equivalents and restricted cash		(402)	59	390	47
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	$	606	244	2,074	2,924

STATEMENT OF CASH FLOWS INFORMATION

December 31, 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)	$	(719)	(78)	(594)	(1,391)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		573	69	441	1,083
Stock-based compensation		234	6	21	261
Non-cash impairment and restructuring costs		1,000	—	—	1,000
Share of (earnings) loss of affiliates, net		484	(6)	108	586
Unrealized (gains) losses on intergroup interests, net		(125)	(42)	167	—
Realized and unrealized (gains) losses on financial instruments, net		521	10	(129)	402
Noncash interest expense		12	1	4	17
Losses (gains) on dilution of investment in affiliate		(4)	—	—	(4)
Loss (gain) on early extinguishment of debt		40	—	—	40
Deferred income tax expense (benefit)		40	(10)	(125)	(95)
Intergroup tax allocation		5	(28)	23	—
Intergroup tax (payments) receipts		8	2	(10)	—
Other charges (credits), net		2	9	—	11
Changes in operating assets and liabilities
Current and other assets		32	(29)	(37)	(34)
Payables and other liabilities		(179)	41	(8)	(146)
Net cash provided (used) by operating activities		1,924	(55)	(139)	1,730
Cash flows from investing activities:
Cash proceeds from dispositions of investments		—	—	13	13
Cash (paid) received for acquisitions, net of cash acquired		(300)	—	—	(300)
Investments in equity method affiliates and debt and equity securities		(96)	—	(17)	(113)
Return of investment in equity method affiliates		—	—	105	105
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities		20	—	—	20
Capital expended for property and equipment, including internal-use software and website development		(350)	(81)	(21)	(452)
Other investing activities, net		(8)	4	(5)	(9)
Net cash provided (used) by investing activities		(734)	(77)	75	(736)
Cash flows from financing activities:
Borrowings of debt		4,149	228	521	4,898
Repayments of debt		(2,203)	(114)	(614)	(2,931)
Intergroup loan (repayment) borrowing		(750)	—	750	—
Liberty stock repurchases		(249)	—	(69)	(318)
Subsidiary shares repurchased by subsidiary		(1,555)	—	—	(1,555)
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		(64)	—	—	(64)
Taxes paid in lieu of shares issued for stock-based compensation		(116)	(1)	(3)	(120)
Other financing activities, net		(47)	(8)	(35)	(90)
Net cash provided (used) by financing activities		(689)	105	1,158	574
Effect of foreign exchange rates on cash, cash equivalents and restricted cash		—	—	3	3
Net increase (decrease) in cash, cash equivalents and restricted cash		501	(27)	1,097	1,571
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	$	1,008	185	1,684	2,877