Quarterly report pursuant to Section 13 or 15(d)

Financial Information for Tracking Stock Groups

v2.4.1.9
Financial Information for Tracking Stock Groups
3 Months Ended
Mar. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Financial Information for Tracking Stock Groups

BALANCE SHEET INFORMATION

March 31, 2015 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

 

    

QVC

    

Ventures

    

Inter-group

    

Consolidated

 

 

 

Group

 

Group

 

Eliminations

 

Liberty

 

 

 

amounts in millions

 

Assets

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

530 

 

1,820 

 

 —

 

2,350 

 

Trade and other receivables, net

 

 

836 

 

31 

 

 —

 

867 

 

Inventory, net

 

 

966 

 

153 

 

 —

 

1,119 

 

Short-term marketable securities

 

 

 

851 

 

 —

 

860 

 

Other current assets

 

 

269 

 

11 

 

(205)

 

75 

 

Total current assets

 

 

2,610 

 

2,866 

 

(205)

 

5,271 

 

Investments in available-for-sale securities and other cost investments (note 2)

 

 

 

1,232 

 

 —

 

1,236 

 

Investments in affiliates, accounted for using the equity method
(note 3)

 

 

193 

 

1,226 

 

 —

 

1,419 

 

Property and equipment, net

 

 

971 

 

67 

 

 —

 

1,038 

 

Intangible assets not subject to amortization

 

 

7,576 

 

268 

 

 —

 

7,844 

 

Intangible assets subject to amortization, net

 

 

1,061 

 

61 

 

 —

 

1,122 

 

Other assets, at cost, net of accumulated amortization

 

 

66 

 

 

 —

 

72 

 

Total assets

 

$

12,481 

 

5,726 

 

(205)

 

18,002 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

Intergroup payable (receivable) (note 7)

 

$

47 

 

(47)

 

 —

 

 —

 

Accounts payable

 

 

554 

 

85 

 

 —

 

639 

 

Accrued liabilities

 

 

543 

 

48 

 

 —

 

591 

 

Current portion of debt (note 4)

 

 

 

931 

 

 —

 

939 

 

Current deferred tax liabilities

 

 

 —

 

1,196 

 

(205)

 

991 

 

Other current liabilities

 

 

163 

 

73 

 

 —

 

236 

 

Total current liabilities

 

 

1,315 

 

2,286 

 

(205)

 

3,396 

 

Long-term debt (note 4)

 

 

5,740 

 

1,241 

 

 —

 

6,981 

 

Deferred income tax liabilities

 

 

936 

 

803 

 

 —

 

1,739 

 

Other liabilities

 

 

169 

 

12 

 

 —

 

181 

 

Total liabilities

 

 

8,160 

 

4,342 

 

(205)

 

12,297 

 

Equity/Attributed net assets (liabilities)

 

 

4,231 

 

1,378 

 

 —

 

5,609 

 

Noncontrolling interests in equity of subsidiaries

 

 

90 

 

 

 —

 

96 

 

Total liabilities and equity

 

$

12,481 

 

5,726 

 

(205)

 

18,002 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended March 31, 2015 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

QVC

 

Ventures

 

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Net retail sales

 

$

1,938 

 

276 

 

2,214 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,221 

 

194 

 

1,415 

 

Operating, including stock-based compensation (note 5)

 

 

169 

 

22 

 

191 

 

Selling, general and administrative, including stock-based compensation (note 5)

 

 

159 

 

45 

 

204 

 

Depreciation and amortization

 

 

152 

 

16 

 

168 

 

 

 

 

1,701 

 

277 

 

1,978 

 

Operating income (loss)

 

 

237 

 

(1)

 

236 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(75)

 

(20)

 

(95)

 

Share of earnings (losses) of affiliates, net (note 3)

 

 

24 

 

(21)

 

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

(10)

 

 

(4)

 

Other, net

 

 

 

 

15 

 

 

 

 

(53)

 

(28)

 

(81)

 

Earnings (loss) before income taxes

 

 

184 

 

(29)

 

155 

 

Income tax benefit (expense)

 

 

(24)

 

21 

 

(3)

 

Net earnings (loss)

 

 

160 

 

(8)

 

152 

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

 

 —

 

 

Net earnings (loss) attributable to Liberty stockholders

 

$

151 

 

(8)

 

143 

 

 

    

 

 

    

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended March 31, 2014 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Net retail sales

 

$

2,434 

 

 —

 

2,434 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,556 

 

 —

 

1,556 

 

Operating, including stock-based compensation

 

 

213 

 

 —

 

213 

 

Selling, general and administrative, including stock-based compensation (note 5)

 

 

253 

 

 

256 

 

Depreciation and amortization

 

 

162 

 

 

163 

 

 

 

 

2,184 

 

 

2,188 

 

Operating income (loss)

 

 

250 

 

(4)

 

246 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(76)

 

(19)

 

(95)

 

Share of earnings (losses) of affiliates, net (note 3)

 

 

21 

 

(23)

 

(2)

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

 

(26)

 

(25)

 

Other, net

 

 

 

 

 

 

 

 

(53)

 

(62)

 

(115)

 

Earnings (loss) from continuing operations before income taxes

 

 

197 

 

(66)

 

131 

 

Income tax benefit (expense)

 

 

(73)

 

33 

 

(40)

 

Net earnings (loss) from continuing operations

 

 

124 

 

(33)

 

91 

 

Earnings (loss) from discontinued operations, net of taxes

 

 

(4)

 

23 

 

19 

 

Net earnings (loss)

 

 

120 

 

(10)

 

110 

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

10 

 

18 

 

28 

 

Net earnings (loss) attributable to Liberty stockholders

 

$

110 

 

(28)

 

82 

 

 

 

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended March 31, 2015 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

QVC

 

Ventures

 

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Net retail sales

 

$

1,938 

 

276 

 

2,214 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,221 

 

194 

 

1,415 

 

Operating, including stock-based compensation (note 5)

 

 

169 

 

22 

 

191 

 

Selling, general and administrative, including stock-based compensation (note 5)

 

 

159 

 

45 

 

204 

 

Depreciation and amortization

 

 

152 

 

16 

 

168 

 

 

 

 

1,701 

 

277 

 

1,978 

 

Operating income (loss)

 

 

237 

 

(1)

 

236 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(75)

 

(20)

 

(95)

 

Share of earnings (losses) of affiliates, net (note 3)

 

 

24 

 

(21)

 

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

(10)

 

 

(4)

 

Other, net

 

 

 

 

15 

 

 

 

 

(53)

 

(28)

 

(81)

 

Earnings (loss) before income taxes

 

 

184 

 

(29)

 

155 

 

Income tax benefit (expense)

 

 

(24)

 

21 

 

(3)

 

Net earnings (loss) from continuing operations

 

 

160 

 

(8)

 

152 

 

Net earnings (loss) from discontinued operations, net of taxes

 

 

 —

 

 —

 

 —

 

Net earnings (loss)

 

 

160 

 

(8)

 

152 

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

 

 —

 

 

Net earnings (loss) attributable to Liberty stockholders

 

$

151 

 

(8)

 

143 

 

 

 

 

 

 

 

 

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended March 31, 2014 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Net retail sales

 

$

2,434 

 

 —

 

2,434 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,556 

 

 —

 

1,556 

 

Operating, including stock-based compensation

 

 

213 

 

 —

 

213 

 

Selling, general and administrative, including stock-based compensation (note 5)

 

 

253 

 

 

256 

 

Depreciation and amortization

 

 

162 

 

 

163 

 

 

 

 

2,184 

 

 

2,188 

 

Operating income (loss)

 

 

250 

 

(4)

 

246 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(76)

 

(19)

 

(95)

 

Share of earnings (losses) of affiliates, net (note 3)

 

 

21 

 

(23)

 

(2)

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

 

(26)

 

(25)

 

Other, net

 

 

 

 

 

 

 

 

(53)

 

(62)

 

(115)

 

Earnings (loss) from continuing operations before income taxes

 

 

197 

 

(66)

 

131 

 

Income tax benefit (expense)

 

 

(73)

 

33 

 

(40)

 

Net earnings (loss) from continuing operations

 

 

124 

 

(33)

 

91 

 

Earnings (loss) from discontinued operations, net of taxes

 

 

(4)

 

23 

 

19 

 

Net earnings (loss)

 

 

120 

 

(10)

 

110 

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

10 

 

18 

 

28 

 

Net earnings (loss) attributable to Liberty stockholders

 

$

110 

 

(28)

 

82 

 

 

STATEMENT OF CASH FLOWS INFORMATION

Three months ended March 31, 2015 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

160 

 

(8)

 

152 

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

152 

 

16 

 

168 

 

Stock-based compensation

 

 

12 

 

 

15 

 

Cash payments for stock based compensation

 

 

 —

 

(2)

 

(2)

 

Excess tax benefit from stock based compensation

 

 

(13)

 

 —

 

(13)

 

Share of (earnings) losses of affiliates, net

 

 

(24)

 

21 

 

(3)

 

Cash receipts from return on equity investments

 

 

 

 

13 

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

10 

 

(6)

 

 

Deferred income tax (benefit) expense

 

 

(79)

 

25 

 

(54)

 

Other, net

 

 

(9)

 

 

(8)

 

Intergroup tax allocation

 

 

47 

 

(47)

 

 —

 

Intergroup tax (payments) receipts

 

 

(6)

 

 

 —

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Current and other assets

 

 

238 

 

20 

 

258 

 

Payables and other current liabilities

 

 

(268)

 

(42)

 

(310)

 

Net cash provided (used) by operating activities

 

 

227 

 

(7)

 

220 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Cash paid for acquisitions

 

 

 —

 

(20)

 

(20)

 

Investments in and loans to cost and equity investees

 

 

(1)

 

(44)

 

(45)

 

Cash receipts from returns of equity investments

 

 

200 

 

 —

 

200 

 

Capital expended for property and equipment

 

 

(31)

 

(13)

 

(44)

 

Purchases of short term and other marketable securities

 

 

(54)

 

(233)

 

(287)

 

Sales of short term and other marketable securities

 

 

66 

 

247 

 

313 

 

Other investing activities, net

 

 

(44)

 

 —

 

(44)

 

Net cash provided (used) by investing activities

 

 

136 

 

(63)

 

73 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

351 

 

180 

 

531 

 

Repayments of debt

 

 

(466)

 

(176)

 

(642)

 

Repurchases of Liberty common stock

 

 

(123)

 

 —

 

(123)

 

Minimum withholding taxes on net settlements of stock-based compensation

 

 

(12)

 

 

(11)

 

Excess tax benefit from stock-based compensation

 

 

13 

 

 —

 

13 

 

Other financing activities, net

 

 

(8)

 

 

(7)

 

Net cash provided (used) by financing activities

 

 

(245)

 

 

(239)

 

Effect of foreign currency rates on cash

 

 

(10)

 

 —

 

(10)

 

Net increase (decrease) in cash and cash equivalents

 

 

108 

 

(64)

 

44 

 

Cash and cash equivalents at beginning of period

 

 

422 

 

1,884 

 

2,306 

 

Cash and cash equivalents at end period

 

$

530 

 

1,820 

 

2,350 

 

 

 

 

 

 

 

 

 

 

 

STATEMENT OF CASH FLOWS INFORMATION

Three months ended March 31, 2014 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

120 

 

(10)

 

110 

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

(Earnings) loss from discontinued operations

 

 

 

(23)

 

(19)

 

Depreciation and amortization

 

 

162 

 

 

163 

 

Stock-based compensation

 

 

24 

 

 

25 

 

Cash payments for stock based compensation

 

 

(3)

 

(1)

 

(4)

 

Excess tax benefit from stock-based compensation

 

 

(8)

 

 —

 

(8)

 

Share of losses (earnings) of affiliates, net

 

 

(21)

 

23 

 

 

Cash receipts from return on equity investments

 

 

 

 

10 

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

(1)

 

26 

 

25 

 

Deferred income tax (benefit) expense

 

 

(49)

 

17 

 

(32)

 

Other, net

 

 

 

(1)

 

 —

 

Intergroup tax allocation

 

 

50 

 

(50)

 

 —

 

Intergroup tax (payments) receipts

 

 

(225)

 

225 

 

 —

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Current and other assets

 

 

175 

 

 

176 

 

Payables and other current liabilities

 

 

(54)

 

 

(51)

 

Net cash provided (used) by operating activities

 

 

180 

 

217 

 

397 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Cash proceeds from dispositions

 

 

 —

 

25 

 

25 

 

Investments in and loans to cost and equity investees

 

 

 —

 

(18)

 

(18)

 

Capital expended for property and equipment

 

 

(41)

 

 —

 

(41)

 

Purchases of short term and other marketable securities

 

 

 —

 

(106)

 

(106)

 

Sales of short term and other marketable securities

 

 

 —

 

68 

 

68 

 

Other investing activities, net

 

 

(9)

 

 

(8)

 

Net cash provided (used) by investing activities

 

 

(50)

 

(30)

 

(80)

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

1,551 

 

 —

 

1,551 

 

Repayments of debt

 

 

(1,347)

 

(5)

 

(1,352)

 

Repurchases of Liberty Interactive common stock

 

 

(213)

 

 —

 

(213)

 

Minimum withholding taxes on net settlements of stock-based compensation

 

 

(6)

 

(2)

 

(8)

 

Excess tax benefit from stock-based compensation

 

 

 

 —

 

 

Intergroup receipts (payments), net

 

 

 

(2)

 

 —

 

Other financing activities, net

 

 

(35)

 

(2)

 

(37)

 

Net cash provided (used) by financing activities

 

 

(40)

 

(11)

 

(51)

 

Net cash provided (used) by discontinued operations:

 

 

 

 

 

 

 

 

Operating

 

 

(6)

 

135 

 

129 

 

Investing

 

 

(1)

 

(153)

 

(154)

 

Financing

 

 

 —

 

(13)

 

(13)

 

Change in available cash held by discontinued operations

 

 

 

31 

 

32 

 

Net cash provided (used) by discontinued operations

 

 

(6)

 

 —

 

(6)

 

Effect of foreign currency rates on cash

 

 

 —

 

 —

 

 —

 

Net increase (decrease) in cash and cash equivalents

 

 

84 

 

176 

 

260 

 

Cash and cash equivalents at beginning of period

 

 

595 

 

307 

 

902 

 

Cash and cash equivalents at end period

 

$

679 

 

483 

 

1,162