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)

9 Months Ended

Sep. 30, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

BALANCE SHEET INFORMATION

September 30, 2016


		Attributed (note 1)
	Liberty		Liberty	Liberty
	SiriusXM		Braves	Media	Inter-Group	Consolidated
	Group		Group	Group	Eliminations	Liberty
	amounts in millions
Assets
Current assets:
Cash and cash equivalents	$	611	109	220	—	940
Trade and other receivables, net		233	39	2	—	274
Other current assets		236	16	6	—	258
Total current assets		1,080	164	228	—	1,472
Intergroup interest in the Liberty Braves Group (note 2)		—	—	158	(158)	—
Investments in available-for-sale securities and other cost investments (note 3)		—	8	1,241	—	1,249
Investments in affiliates, accounted for using the equity method (note 4)		165	56	935	—	1,156

Property and equipment, at cost		2,038	783	159	—	2,980
Accumulated depreciation		(703)	(46)	(68)	—	(817)
		1,335	737	91	—	2,163

Intangible assets not subject to amortization
Goodwill		14,165	180	—	—	14,345
FCC licenses		8,600	—	—	—	8,600
Other		930	143	—	—	1,073
		23,695	323	—	—	24,018
Intangible assets subject to amortization, net		1,001	69	—	—	1,070
Other assets		156	12	294	(27)	435
Total assets	$	27,432	1,369	2,947	(185)	31,563

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 7)	$	(6)	(1)	7	—	—
Accounts payable and accrued liabilities		732	66	26	—	824
Current portion of debt (note 5)		609	—	—	—	609
Deferred revenue		1,811	27	—	—	1,838
Other current liabilities		3	—	12	—	15
Total current liabilities		3,149	92	45	—	3,286
Long-term debt (note 5)		5,753	211	1,546	—	7,510
Deferred income tax liabilities		1,952	37	47	(27)	2,009
Redeemable intergroup interest (note 2)		—	158	—	(158)	—
Other liabilities		279	431	55	—	765
Total liabilities		11,133	929	1,693	(185)	13,570
Equity / Attributed net assets		10,026	425	1,254	—	11,705
Noncontrolling interests in equity of subsidiaries		6,273	15	—	—	6,288
Total liabilities and equity	$	27,432	1,369	2,947	(185)	31,563

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2016


		Attributed (note 1)
	Liberty		Liberty	Liberty
	SiriusXM		Braves	Media	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	1,069	—	—	1,069
Other revenue		207	109	—	316
Total revenue		1,276	109	—	1,385
Operating costs and expenses, including stock-based compensation (note 6):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		273	—	—	273
Programming and content		90	—	—	90
Customer service and billing		95	—	—	95
Other		31	—	—	31
Subscriber acquisition costs		121	—	—	121
Other operating expenses		18	78	—	96
Selling, general and administrative		202	18	15	235
Depreciation and amortization		79	12	1	92
		909	108	16	1,033
Operating income (loss)		367	1	(16)	352
Other income (expense):
Interest expense		(93)	—	(5)	(98)
Share of earnings (losses) of affiliates, net		2	2	33	37
Realized and unrealized gains (losses) on financial instruments, net		—	—	7	7
Unrealized gains (losses) on intergroup interest (note 2)		—	(25)	25	—
Other, net		1	1	3	5
		(90)	(22)	63	(49)
Earnings (loss) before income taxes		277	(21)	47	303
Income tax (expense) benefit		(127)	(1)	(6)	(134)
Net earnings (loss)		150	(22)	41	169
Less net earnings (loss) attributable to the noncontrolling interests		54	—	—	54
Net earnings (loss) attributable to Liberty stockholders	$	96	(22)	41	115

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2015


		Attributed (note 1)
	Liberty		Liberty	Liberty
	SiriusXM		Braves	Media	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	969	—	—	969
Other revenue		196	119	—	315
Total revenue		1,165	119	—	1,284
Operating costs and expenses, including stock-based compensation (note 6):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		239	—	—	239
Programming and content		68	—	—	68
Customer service and billing		94	—	—	94
Other		33	—	—	33
Subscriber acquisition costs		133	—	—	133
Other operating expenses		18	75	—	93
Selling, general and administrative		170	17	20	207
Depreciation and amortization		82	11	3	96
		837	103	23	963
Operating income (loss)		328	16	(23)	321
Other income (expense):
Interest expense		(80)	(1)	(3)	(84)
Share of earnings (losses) of affiliates, net		1	2	26	29
Realized and unrealized gains (losses) on financial instruments, net		—	—	(200)	(200)
Other, net		—	—	4	4
		(79)	1	(173)	(251)
Earnings (loss) before income taxes		249	17	(196)	70
Income tax (expense) benefit		(97)	(7)	75	(29)
Net earnings (loss)		152	10	(121)	41
Less net earnings (loss) attributable to the noncontrolling interests		63	—	—	63
Net earnings (loss) attributable to Liberty stockholders	$	89	10	(121)	(22)

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2016


		Attributed (note 1)
	Liberty		Liberty	Liberty
	SiriusXM		Braves	Media	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	3,110	—	—	3,110
Other revenue		601	244	—	845
Total revenue		3,711	244	—	3,955
Operating costs and expenses, including stock-based compensation (note 6):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		789	—	—	789
Programming and content		258	—	—	258
Customer service and billing		286	—	—	286
Other		109	—	—	109
Subscriber acquisition costs		382	—	—	382
Other operating expenses		57	208	—	265
Selling, general and administrative		549	51	44	644
Legal settlement, net		—	—	(511)	(511)
Depreciation and amortization		235	30	7	272
		2,665	289	(460)	2,494
Operating income (loss)		1,046	(45)	460	1,461
Other income (expense):
Interest expense		(260)	—	(12)	(272)
Share of earnings (losses) of affiliates, net		11	6	26	43
Realized and unrealized gains (losses) on financial instruments, net		—	—	(33)	(33)
Unrealized gains (losses) on intergroup interest (note 2)		—	2	(2)	—
Other, net		2	—	15	17
		(247)	8	(6)	(245)
Earnings (loss) before income taxes		799	(37)	454	1,216
Income tax (expense) benefit		(328)	15	(165)	(478)
Net earnings (loss)		471	(22)	289	738
Less net earnings (loss) attributable to the noncontrolling interests		177	—	—	177
Net earnings (loss) attributable to Liberty stockholders	$	294	(22)	289	561

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2015


		Attributed (note 1)
	Liberty		Liberty	Liberty
	SiriusXM		Braves	Media	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	2,812	—	—	2,812
Other revenue		548	227	—	775
Total revenue		3,360	227	—	3,587
Operating costs and expenses, including stock-based compensation (note 6):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		783	—	—	783
Programming and content		191	—	—	191
Customer service and billing		280	—	—	280
Other		98	—	—	98
Subscriber acquisition costs		392	—	—	392
Other operating expenses		53	173	—	226
Selling, general and administrative		511	45	52	608
Depreciation and amortization		240	25	7	272
		2,548	243	59	2,850
Operating income (loss)		812	(16)	(59)	737
Other income (expense):
Interest expense		(229)	(2)	(13)	(244)
Share of earnings (losses) of affiliates, net		(3)	6	(11)	(8)
Realized and unrealized gains (losses) on financial instruments, net		—	—	(188)	(188)
Other, net		—	—	12	12
		(232)	4	(200)	(428)
Earnings (loss) before income taxes		580	(12)	(259)	309
Income tax (expense) benefit		(252)	3	99	(150)
Net earnings (loss)		328	(9)	(160)	159
Less net earnings (loss) attributable to the noncontrolling interests		139	—	—	139
Net earnings (loss) attributable to Liberty stockholders	$	189	(9)	(160)	20

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2016


		Attributed (note 1)
	Liberty		Liberty	Liberty
	SiriusXM		Braves	Media	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	471	(22)	289	738
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		235	30	7	272
Stock-based compensation		90	7	12	109
Share of (earnings) loss of affiliates, net		(11)	(6)	(26)	(43)
Unrealized (gains) losses on intergroup interest, net		—	(2)	2	—
Realized and unrealized (gains) losses on financial instruments, net		—	—	33	33
Deferred income tax expense (benefit)		319	(10)	98	407
Intergroup tax allocation		(9)	(4)	13	—
Intergroup tax (payments) receipts		2	7	(9)	—
Other charges (credits), net		27	3	5	35
Changes in operating assets and liabilities
Current and other assets		6	(39)	4	(29)
Payables and other liabilities		67	55	7	129
Net cash provided (used) by operating activities		1,197	19	435	1,651
Cash flows from investing activities:
Investments in and loans to cost and equity investees		—	(13)	(749)	(762)
Cash proceeds from sale of investments		—	—	61	61
Proceeds (payments) on financial instruments, net		—	—	(1)	(1)
Capital expended for property and equipment		(132)	(185)	(1)	(318)
Purchases of short term investments and other marketable securities		—	—	(258)	(258)
Sales of short term investments and other marketable securities		—	—	273	273
Other investing activities, net		(4)	(27)	26	(5)
Net cash provided (used) by investing activities		(136)	(225)	(649)	(1,010)
Cash flows from financing activities:
Borrowings of debt		1,387	194	438	2,019
Repayments of debt		(749)	(126)	(1)	(876)
Intergroup (payments) receipts		8	(34)	26	—
Shares repurchased by subsidiary		(1,225)	—	—	(1,225)
Proceeds from Liberty Braves common stock rights offering		—	203	—	203
Taxes paid in lieu of shares issued for stock-based compensation		(34)	—	(9)	(43)
Other financing activities, net		51	65	(96)	20
Net cash provided (used) by financing activities		(562)	302	358	98
Net increase (decrease) in cash and cash equivalents		499	96	144	739
Cash and cash equivalents at beginning of period		112	13	76	201
Cash and cash equivalents at end of period	$	611	109	220	940

STATEMENT OF CASH FLOWS INFORMATION

September 30, 2015


		Attributed (note 1)
	Liberty		Liberty	Liberty
	SiriusXM		Braves	Media	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	328	(9)	(160)	159
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		240	25	7	272
Stock-based compensation		115	5	27	147
Share of (earnings) loss of affiliates, net		3	(6)	11	8
Realized and unrealized (gains) losses on financial instruments, net		—	—	188	188
Deferred income tax expense (benefit)		225	(5)	(122)	98
Intergroup tax allocation		(3)	2	1	—
Intergroup tax (payments) receipts		—	1	(1)	—
Other charges (credits), net		16	3	1	20
Changes in operating assets and liabilities
Current and other assets		(154)	12	1	(141)
Payables and other liabilities		113	(8)	37	142
Net cash provided (used) by operating activities		883	20	(10)	893
Cash flows from investing activities:
Cash proceeds from dispositions of investments		—	24	151	175
Proceeds (payments) from settlement of financial instruments, net		—	—	(88)	(88)
Capital expended for property and equipment		(91)	(84)	(1)	(176)
Purchases of short term investments and other marketable securities		—	—	(51)	(51)
Sales of short term investments and other marketable securities		—	—	231	231
Other investing activities, net		—	(10)	(30)	(40)
Net cash provided (used) by investing activities		(91)	(70)	212	51
Cash flows from financing activities:
Borrowings of debt		1,579	200	—	1,779
Repayments of debt		(688)	(130)	—	(818)
Intergroup (payments) receipts		9	—	(9)	—
Repurchases of Liberty common stock		—	—	(303)	(303)
Shares repurchased by subsidiary		(1,648)	—	—	(1,648)
Taxes paid in lieu of shares issued for stock-based compensation		(39)	—	(12)	(51)
Other financing activities, net		—	—	4	4
Net cash provided (used) by financing activities		(787)	70	(320)	(1,037)
Net increase (decrease) in cash and cash equivalents		5	20	(118)	(93)
Cash and cash equivalents at beginning of period		148	11	522	681
Cash and cash equivalents at end of period	$	153	31	404	588