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, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

BALANCE SHEET INFORMATION

June 30, 2017


		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	$	173	128	443	—	744
Trade and other receivables, net		234	59	70	—	363
Other current assets		219	22	85	—	326
Total current assets		626	209	598	—	1,433
Intergroup interest in the Liberty Braves Group (note 2)		—	—	218	(218)	—
Investments in available-for-sale securities and other cost investments (note 3)		173	8	569	—	750
Investments in affiliates, accounted for using the equity method (note 4)		610	47	919	—	1,576

Property and equipment, at cost		2,141	1,083	169	—	3,393
Accumulated depreciation		(821)	(25)	(76)	—	(922)
		1,320	1,058	93	—	2,471

Intangible assets not subject to amortization
Goodwill		14,250	180	3,968	—	18,398
FCC licenses		8,600	—	—	—	8,600
Other		931	143	—	—	1,074
		23,781	323	3,968	—	28,072
Intangible assets subject to amortization, net		987	73	5,313	—	6,373
Other assets		146	16	576	(29)	709
Total assets	$	27,643	1,734	12,254	(247)	41,384

Liabilities and Equity
Current liabilities:
Intergroup payable (receivable) (note 7)	$	(9)	(36)	45	—	—
Accounts payable and accrued liabilities		783	87	122	—	992
Current portion of debt (note 5)		5	—	—	—	5
Deferred revenue		1,865	112	315	—	2,292
Other current liabilities		3	—	19	—	22
Total current liabilities		2,647	163	501	—	3,311
Long-term debt (note 5)		6,712	502	6,305	—	13,519
Deferred income tax liabilities		2,174	70	478	(29)	2,693
Redeemable intergroup interest (note 2)		—	218	—	(218)	—
Other liabilities		286	433	58	—	777
Total liabilities		11,819	1,386	7,342	(247)	20,300
Equity / Attributed net assets		10,203	333	4,912	—	15,448
Noncontrolling interests in equity of subsidiaries		5,621	15	—	—	5,636
Total liabilities and equity	$	27,643	1,734	12,254	(247)	41,384

Condensed Statement of Operations

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2017


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	1,111	—	—	1,111
Formula 1 revenue		—	—	616	616
Other revenue		237	176	—	413
Total revenue		1,348	176	616	2,140
Operating costs and expenses, including stock-based compensation (note 6):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		293	—	—	293
Programming and content		96	—	—	96
Customer service and billing		95	—	—	95
Other		30	—	—	30
Cost of Formula 1 revenue		—	—	414	414
Subscriber acquisition costs		126	—	—	126
Other operating expenses		27	126	—	153
Selling, general and administrative		202	29	57	288
Depreciation and amortization		87	24	112	223
		956	179	583	1,718
Operating income (loss)		392	(3)	33	422
Other income (expense):
Interest expense		(85)	(2)	(62)	(149)
Share of earnings (losses) of affiliates, net		(5)	1	20	16
Realized and unrealized gains (losses) on financial instruments, net		—	—	(49)	(49)
Unrealized gains (losses) on intergroup interest (note 2)		—	(3)	3	—
Other, net		(7)	2	1	(4)
		(97)	(2)	(87)	(186)
Earnings (loss) before income taxes		295	(5)	(54)	236
Income tax (expense) benefit		(110)	3	27	(80)
Net earnings (loss)		185	(2)	(27)	156
Less net earnings (loss) attributable to the noncontrolling interests		62	—	—	62
Net earnings (loss) attributable to Liberty stockholders	$	123	(2)	(27)	94

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2016


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	1,032	—	—	1,032
Other revenue		203	131	—	334
Total revenue		1,235	131	—	1,366
Operating costs and expenses, including stock-based compensation (note 6):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		264	—	—	264
Programming and content		83	—	—	83
Customer service and billing		94	—	—	94
Other		45	—	—	45
Subscriber acquisition costs		129	—	—	129
Other operating expenses		20	102	—	122
Selling, general and administrative		180	19	9	208
Depreciation and amortization		77	13	3	93
		892	134	12	1,038
Operating income (loss)		343	(3)	(12)	328
Other income (expense):
Interest expense		(86)	—	(4)	(90)
Share of earnings (losses) of affiliates, net		2	2	14	18
Realized and unrealized gains (losses) on financial instruments, net		—	—	(32)	(32)
Unrealized gains (losses) on intergroup interest (note 2)		—	27	(27)	—
Other, net		—	(1)	6	5
		(84)	28	(43)	(99)
Earnings (loss) before income taxes		259	25	(55)	229
Income tax (expense) benefit		(99)	—	12	(87)
Net earnings (loss)		160	25	(43)	142
Less net earnings (loss) attributable to the noncontrolling interests		60	—	—	60
Net earnings (loss) attributable to Liberty stockholders	$	100	25	(43)	82

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2017


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	2,189	—	—	2,189
Formula 1 revenue		—	—	712	712
Other revenue		453	181	—	634
Total revenue		2,642	181	712	3,535
Operating costs and expenses, including stock-based compensation (note 6):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		570	—	—	570
Programming and content		192	—	—	192
Customer service and billing		192	—	—	192
Other		57	—	—	57
Cost of Formula 1 revenue		—	—	482	482
Subscriber acquisition costs		253	—	—	253
Other operating expenses		51	143	—	194
Selling, general and administrative		386	48	93	527
Depreciation and amortization		177	26	184	387
		1,878	217	759	2,854
Operating income (loss)		764	(36)	(47)	681
Other income (expense):
Interest expense		(169)	(2)	(118)	(289)
Share of earnings (losses) of affiliates, net		(2)	4	10	12
Realized and unrealized gains (losses) on financial instruments, net		—	—	(61)	(61)
Unrealized gains (losses) on intergroup interest (note 2)		—	(31)	31	—
Other, net		(1)	5	9	13
		(172)	(24)	(129)	(325)
Earnings (loss) before income taxes		592	(60)	(176)	356
Income tax (expense) benefit		(218)	9	53	(156)
Net earnings (loss)		374	(51)	(123)	200
Less net earnings (loss) attributable to the noncontrolling interests		127	—	—	127
Net earnings (loss) attributable to Liberty stockholders	$	247	(51)	(123)	73

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2016


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Revenue:
Subscriber revenue	$	2,041	—	—	2,041
Other revenue		394	135	—	529
Total revenue		2,435	135	—	2,570
Operating costs and expenses, including stock-based compensation (note 6):
Cost of subscriber services (exclusive of depreciation shown separately below):
Revenue share and royalties		516	—	—	516
Programming and content		168	—	—	168
Customer service and billing		191	—	—	191
Other		78	—	—	78
Subscriber acquisition costs		261	—	—	261
Other operating expenses		39	130	—	169
Selling, general and administrative		347	33	29	409
Legal settlement, net		—	—	(511)	(511)
Depreciation and amortization		156	18	6	180
		1,756	181	(476)	1,461
Operating income (loss)		679	(46)	476	1,109
Other income (expense):
Interest expense		(167)	—	(7)	(174)
Share of earnings (losses) of affiliates, net		9	4	(7)	6
Realized and unrealized gains (losses) on financial instruments, net		—	—	(40)	(40)
Unrealized gains (losses) on intergroup interest (note 2)		—	27	(27)	—
Other, net		1	(1)	12	12
		(157)	30	(69)	(196)
Earnings (loss) before income taxes		522	(16)	407	913
Income tax (expense) benefit		(201)	16	(159)	(344)
Net earnings (loss)		321	—	248	569
Less net earnings (loss) attributable to the noncontrolling interests		123	—	—	123
Net earnings (loss) attributable to Liberty stockholders	$	198	—	248	446

Condensed Statement of Cash Flows

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 30, 2017


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	374	(51)	(123)	200
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		177	26	184	387
Stock-based compensation		71	8	18	97
Share of (earnings) loss of affiliates, net		2	(4)	(10)	(12)
Unrealized (gains) losses on intergroup interest, net		—	31	(31)	—
Realized and unrealized (gains) losses on financial instruments, net		—	—	61	61
Noncash interest expense		3	1	2	6
Losses (gains) on dilution of investment in affiliate		—	—	(2)	(2)
Deferred income tax expense (benefit)		215	23	(62)	176
Intergroup tax allocation		(9)	(33)	42	—
Intergroup tax payments		4	15	(19)	—
Other charges (credits), net		2	(3)	(1)	(2)
Changes in operating assets and liabilities
Current and other assets		(15)	(51)	29	(37)
Payables and other liabilities		(39)	24	(120)	(135)
Net cash provided (used) by operating activities		785	(14)	(32)	739
Cash flows from investing activities:
Investments in and loans to cost and equity investees		(434)	(2)	(6)	(442)
Cash proceeds from sale of investments		—	5	1	6
Net cash paid for the acquisition of Formula 1		—	—	(1,647)	(1,647)
Capital expended for property and equipment		(119)	(145)	(2)	(266)
Other investing activities, net		(114)	5	(10)	(119)
Net cash provided (used) by investing activities		(667)	(137)	(1,664)	(2,468)
Cash flows from financing activities:
Borrowings of debt		980	214	1,403	2,597
Repayments of debt		(376)	(42)	(1,373)	(1,791)
Proceeds from issuance of Series C Liberty Formula One common stock		—	—	1,938	1,938
Subsidiary shares repurchased by subsidiary		(784)	—	—	(784)
Cash dividends paid by subsidiary		(30)	—	—	(30)
Taxes paid in lieu of shares issued for stock-based compensation		(29)	—	(3)	(32)
Other financing activities, net		7	—	1	8
Net cash provided (used) by financing activities		(232)	172	1,966	1,906
Effect of foreign exchange rate changes on cash and cash equivalents		—	—	5	5
Net increase (decrease) in cash and cash equivalents		(114)	21	275	182
Cash and cash equivalents at beginning of period		287	107	168	562
Cash and cash equivalents at end of period	$	173	128	443	744

STATEMENT OF CASH FLOWS INFORMATION

June 30, 2016


		Attributed (note 1)
	Liberty
	SiriusXM		Braves	Formula One	Consolidated
	Group		Group	Group	Liberty
	amounts in millions
Cash flows from operating activities:
Net earnings (loss)	$	321	—	248	569
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		156	18	6	180
Stock-based compensation		54	4	10	68
Share of (earnings) loss of affiliates, net		(9)	(4)	7	(6)
Unrealized (gains) losses on intergroup interest, net		—	(27)	27	—
Realized and unrealized (gains) losses on financial instruments, net		—	—	40	40
Noncash interest expense		3	(2)	(1)	—
Losses (gains) on dilution of investment in affiliate		—	—	2	2
Deferred income tax expense (benefit)		192	(20)	6	178
Intergroup tax allocation		3	(4)	1	—
Other charges (credits), net		23	3	(5)	21
Changes in operating assets and liabilities
Current and other assets		7	(60)	2	(51)
Payables and other liabilities		34	111	116	261
Net cash provided (used) by operating activities		784	19	459	1,262
Cash flows from investing activities:
Investments in and loans to cost and equity investees		—	(8)	(3)	(11)
Cash proceeds from sale of investments		—	—	58	58
Capital expended for property and equipment		(67)	(93)	—	(160)
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)	(10)	26	12
Net cash provided (used) by investing activities		(71)	(111)	96	(86)
Cash flows from financing activities:
Borrowings of debt		1,387	66	—	1,453
Repayments of debt		(744)	(71)	(1)	(816)
Intergroup (payments) receipts		9	(34)	25	—
Shares repurchased by subsidiary		(996)	—	—	(996)
Proceeds from Liberty Braves common stock rights offering		—	203	—	203
Taxes paid in lieu of shares issued for stock-based compensation		(6)	—	(4)	(10)
Other financing activities, net		51	64	(97)	18
Net cash provided (used) by financing activities		(299)	228	(77)	(148)
Net increase (decrease) in cash and cash equivalents		414	136	478	1,028
Cash and cash equivalents at beginning of period		112	13	76	201
Cash and cash equivalents at end of period	$	526	149	554	1,229