Quarterly report pursuant to Section 13 or 15(d)

Financial Information for Tracking Stock Groups (Tables)

v3.2.0.727
Financial Information for Tracking Stock Groups (Tables)
6 Months Ended
Jun. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Balance Sheet

BALANCE SHEET INFORMATION

June 30, 2015 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

 

    

QVC

    

Ventures

    

Inter-group

    

Consolidated

 

 

 

Group

 

Group

 

Eliminations

 

Liberty

 

 

 

amounts in millions

 

Assets

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

497

 

2,092

 

 —

 

2,589

 

Trade and other receivables, net

 

 

800

 

59

 

 —

 

859

 

Inventory, net

 

 

964

 

65

 

 —

 

1,029

 

Short-term marketable securities

 

 

8

 

837

 

 —

 

845

 

Other current assets

 

 

273

 

8

 

(204)

 

77

 

Total current assets

 

 

2,542

 

3,061

 

(204)

 

5,399

 

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

 

 

4

 

1,401

 

 —

 

1,405

 

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

 

 

196

 

1,325

 

 —

 

1,521

 

Property and equipment, net

 

 

982

 

38

 

 —

 

1,020

 

Intangible assets not subject to amortization

 

 

7,592

 

127

 

 —

 

7,719

 

Intangible assets subject to amortization, net

 

 

976

 

38

 

 —

 

1,014

 

Other assets, at cost, net of accumulated amortization

 

 

59

 

5

 

 —

 

64

 

Total assets

 

$

12,351

 

5,995

 

(204)

 

18,142

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

Intergroup payable (receivable) (note 7)

 

$

1

 

(1)

 

 —

 

 —

 

Accounts payable

 

 

567

 

34

 

 —

 

601

 

Accrued liabilities

 

 

570

 

45

 

 —

 

615

 

Current portion of debt (note 4)

 

 

9

 

907

 

 —

 

916

 

Current deferred tax liabilities

 

 

 —

 

1,244

 

(204)

 

1,040

 

Other current liabilities

 

 

155

 

82

 

 —

 

237

 

Total current liabilities

 

 

1,302

 

2,311

 

(204)

 

3,409

 

Long-term debt (note 4)

 

 

5,685

 

1,380

 

 —

 

7,065

 

Deferred income tax liabilities

 

 

949

 

790

 

 —

 

1,739

 

Other liabilities

 

 

190

 

12

 

 —

 

202

 

Total liabilities

 

 

8,126

 

4,493

 

(204)

 

12,415

 

Equity/Attributed net assets (liabilities)

 

 

4,130

 

1,509

 

 —

 

5,639

 

Noncontrolling interests in equity of subsidiaries

 

 

95

 

(7)

 

 —

 

88

 

Total liabilities and equity

 

$

12,351

 

5,995

 

(204)

 

18,142

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Income Statement

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2015 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

QVC

 

Ventures

 

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

1,998

 

254

 

2,252

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,234

 

175

 

1,409

 

Operating, including stock-based compensation (note 5)

 

 

174

 

24

 

198

 

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

 

 

157

 

58

 

215

 

Depreciation and amortization

 

 

149

 

12

 

161

 

 

 

 

1,714

 

269

 

1,983

 

Operating income (loss)

 

 

284

 

(15)

 

269

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(70)

 

(20)

 

(90)

 

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

 

 

9

 

78

 

87

 

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

 

 

8

 

24

 

32

 

Gains (losses)  on dispositions, net (note 1)

 

 

 —

 

111

 

111

 

Other, net

 

 

(31)

 

2

 

(29)

 

 

 

 

(84)

 

195

 

111

 

Earnings (loss) before income taxes

 

 

200

 

180

 

380

 

Income tax benefit (expense)

 

 

(80)

 

(42)

 

(122)

 

Net earnings (loss)

 

 

120

 

138

 

258

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

8

 

8

 

16

 

Net earnings (loss) attributable to Liberty stockholders

 

$

112

 

130

 

242

 

 

    

 

 

    

 

    

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2014 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

2,483

 

 —

 

2,483

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,558

 

 —

 

1,558

 

Operating, including stock-based compensation

 

 

217

 

 —

 

217

 

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

 

 

272

 

6

 

278

 

Impairment of Long Lived Assets

 

 

7

 

 —

 

7

 

Depreciation and amortization

 

 

165

 

(1)

 

164

 

 

 

 

2,219

 

5

 

2,224

 

Operating income (loss)

 

 

264

 

(5)

 

259

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(79)

 

(19)

 

(98)

 

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

 

 

7

 

(3)

 

4

 

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

 

 

6

 

(47)

 

(41)

 

Other, net

 

 

(1)

 

4

 

3

 

 

 

 

(67)

 

(65)

 

(132)

 

Earnings (loss) from continuing operations before income taxes

 

 

197

 

(70)

 

127

 

Income tax benefit (expense)

 

 

(76)

 

36

 

(40)

 

Net earnings (loss) from continuing operations

 

 

121

 

(34)

 

87

 

Earnings (loss) from discontinued operations, net of taxes

 

 

(7)

 

26

 

19

 

Net earnings (loss)

 

 

114

 

(8)

 

106

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

9

 

20

 

29

 

Net earnings (loss) attributable to Liberty stockholders

 

$

105

 

(28)

 

77

 

 

 

 

 

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2015 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

QVC

 

Ventures

 

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

3,936

 

530

 

4,466

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

2,455

 

369

 

2,824

 

Operating, including stock-based compensation (note 5)

 

 

343

 

46

 

389

 

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

 

 

316

 

103

 

419

 

Depreciation and amortization

 

 

301

 

28

 

329

 

 

 

 

3,415

 

546

 

3,961

 

Operating income (loss)

 

 

521

 

(16)

 

505

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(145)

 

(40)

 

(185)

 

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

 

 

33

 

57

 

90

 

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

 

 

(2)

 

30

 

28

 

Gains (losses)  on dispositions, net (note 1)

 

 

 —

 

111

 

111

 

Other, net

 

 

(23)

 

9

 

(14)

 

 

 

 

(137)

 

167

 

30

 

Earnings (loss) before income taxes

 

 

384

 

151

 

535

 

Income tax benefit (expense)

 

 

(104)

 

(21)

 

(125)

 

Net earnings (loss)

 

 

280

 

130

 

410

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

17

 

8

 

25

 

Net earnings (loss) attributable to Liberty stockholders

 

$

263

 

122

 

385

 

 

 

 

 

 

 

 

 

 

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2014 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

4,917

 

 —

 

4,917

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

3,114

 

 —

 

3,114

 

Operating, including stock-based compensation

 

 

430

 

 —

 

430

 

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

 

 

525

 

9

 

534

 

Impairment of intangible assets

 

 

7

 

 —

 

7

 

Depreciation and amortization

 

 

327

 

 —

 

327

 

 

 

 

4,403

 

9

 

4,412

 

Operating income (loss)

 

 

514

 

(9)

 

505

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(155)

 

(38)

 

(193)

 

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

 

 

28

 

(26)

 

2

 

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

 

 

7

 

(73)

 

(66)

 

Other, net

 

 

 —

 

10

 

10

 

 

 

 

(120)

 

(127)

 

(247)

 

Earnings (loss) from continuing operations before income taxes

 

 

394

 

(136)

 

258

 

Income tax benefit (expense)

 

 

(149)

 

69

 

(80)

 

Net earnings (loss) from continuing operations

 

 

245

 

(67)

 

178

 

Earnings (loss) from discontinued operations, net of taxes

 

 

(11)

 

49

 

38

 

Net earnings (loss)

 

 

234

 

(18)

 

216

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

19

 

38

 

57

 

Net earnings (loss) attributable to Liberty stockholders

 

$

215

 

(56)

 

159

 

 

Condensed Cash Flow Statement

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 30, 2015 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

280

 

130

 

410

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

301

 

28

 

329

 

Stock-based compensation

 

 

24

 

20

 

44

 

Cash payments for stock based compensation

 

 

 —

 

(10)

 

(10)

 

Excess tax benefit from stock based compensation

 

 

(14)

 

(2)

 

(16)

 

Share of (earnings) losses of affiliates, net

 

 

(33)

 

(57)

 

(90)

 

Cash receipts from return on equity investments

 

 

14

 

13

 

27

 

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

 

 

2

 

(30)

 

(28)

 

(Gains) losses on dispositions

 

 

 —

 

(111)

 

(111)

 

Deferred income tax (benefit) expense

 

 

(91)

 

61

 

(30)

 

Other, net

 

 

25

 

7

 

32

 

Intergroup tax allocation

 

 

43

 

(43)

 

 —

 

Intergroup tax (payments) receipts

 

 

(55)

 

55

 

 —

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Current and other assets

 

 

283

 

4

 

287

 

Payables and other current liabilities

 

 

(208)

 

(38)

 

(246)

 

Net cash provided (used) by operating activities

 

 

571

 

27

 

598

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Cash paid for acquisitions

 

 

 —

 

(20)

 

(20)

 

Cash proceeds from dispositions

 

 

 —

 

271

 

271

 

Investments in and loans to cost and equity investees

 

 

(2)

 

(96)

 

(98)

 

Cash receipts from returns of equity investments

 

 

200

 

 —

 

200

 

Capital expended for property and equipment

 

 

(80)

 

(24)

 

(104)

 

Purchases of short term and other marketable securities

 

 

(80)

 

(546)

 

(626)

 

Sales of short term and other marketable securities

 

 

93

 

584

 

677

 

Other investing activities, net

 

 

(47)

 

 —

 

(47)

 

Net cash provided (used) by investing activities

 

 

84

 

169

 

253

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

1,098

 

369

 

1,467

 

Repayments of debt

 

 

(1,288)

 

(340)

 

(1,628)

 

Repurchases of Liberty common stock

 

 

(377)

 

 —

 

(377)

 

Minimum withholding taxes on net settlements of stock-based compensation

 

 

(14)

 

1

 

(13)

 

Excess tax benefit from stock-based compensation

 

 

14

 

2

 

16

 

Other financing activities, net

 

 

(4)

 

(20)

 

(24)

 

Net cash provided (used) by financing activities

 

 

(571)

 

12

 

(559)

 

Effect of foreign currency rates on cash

 

 

(9)

 

 —

 

(9)

 

Net increase (decrease) in cash and cash equivalents

 

 

75

 

208

 

283

 

Cash and cash equivalents at beginning of period

 

 

422

 

1,884

 

2,306

 

Cash and cash equivalents at end period

 

$

497

 

2,092

 

2,589

 

 

 

 

 

 

 

 

 

 

 

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 30, 2014 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

234

 

(18)

 

216

 

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

 

 

 

 

 

 

 

 

(Earnings) loss from discontinued operations

 

 

11

 

(49)

 

(38)

 

Depreciation and amortization

 

 

327

 

 —

 

327

 

Stock-based compensation

 

 

48

 

3

 

51

 

Cash payments for stock based compensation

 

 

(5)

 

(1)

 

(6)

 

Excess tax benefit from stock-based compensation

 

 

(9)

 

(1)

 

(10)

 

Share of losses (earnings) of affiliates, net

 

 

(28)

 

26

 

(2)

 

Cash receipts from return on equity investments

 

 

10

 

10

 

20

 

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

 

 

(7)

 

73

 

66

 

Impairment of intangible assets

 

 

7

 

 

 

7

 

Deferred income tax (benefit) expense

 

 

(101)

 

35

 

(66)

 

Other, net

 

 

4

 

3

 

7

 

Intergroup tax allocation

 

 

105

 

(105)

 

 —

 

Intergroup tax (payments) receipts

 

 

(276)

 

276

 

 —

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Current and other assets

 

 

310

 

1

 

311

 

Payables and other current liabilities

 

 

(46)

 

(5)

 

(51)

 

Net cash provided (used) by operating activities

 

 

584

 

248

 

832

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Cash proceeds from dispositions

 

 

 —

 

25

 

25

 

Investments in and loans to cost and equity investees

 

 

(2)

 

(29)

 

(31)

 

Capital expended for property and equipment

 

 

(88)

 

3

 

(85)

 

Purchases of short term and other marketable securities

 

 

(38)

 

(219)

 

(257)

 

Sales of short term and other marketable securities

 

 

27

 

210

 

237

 

Other investing activities, net

 

 

(10)

 

15

 

5

 

Net cash provided (used) by investing activities

 

 

(111)

 

5

 

(106)

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

1,895

 

 —

 

1,895

 

Repayments of debt

 

 

(1,739)

 

(5)

 

(1,744)

 

Repurchases of Liberty Interactive common stock

 

 

(478)

 

 —

 

(478)

 

Minimum withholding taxes on net settlements of stock-based compensation

 

 

(14)

 

 —

 

(14)

 

Excess tax benefit from stock-based compensation

 

 

9

 

1

 

10

 

Intergroup receipts (payments), net

 

 

2

 

(2)

 

 —

 

Other financing activities, net

 

 

(36)

 

 —

 

(36)

 

Net cash provided (used) by financing activities

 

 

(361)

 

(6)

 

(367)

 

Net cash provided (used) by discontinued operations:

 

 

 

 

 

 

 

 

Operating

 

 

(14)

 

269

 

255

 

Investing

 

 

1

 

(12)

 

(11)

 

Financing

 

 

(1)

 

(23)

 

(24)

 

Effect of foreign currency rates on cash

 

 

 

 

3

 

3

 

Change in available cash held by discontinued operations

 

 

2

 

(237)

 

(235)

 

Net cash provided (used) by discontinued operations

 

 

(12)

 

 —

 

(12)

 

Effect of foreign currency rates on cash

 

 

(5)

 

 —

 

(5)

 

Net increase (decrease) in cash and cash equivalents

 

 

95

 

247

 

342

 

Cash and cash equivalents at beginning of period

 

 

595

 

307

 

902

 

Cash and cash equivalents at end period

 

$

690

 

554

 

1,244