| Financial Information for Tracking Stock Groups |
BALANCE SHEET INFORMATION
June 30, 2016
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1)
|
|
|
|
|
|
|
|
|
QVC
|
|
Ventures
|
|
Inter-group
|
|
Consolidated
|
|
|
|
|
Group
|
|
Group
|
|
Eliminations
|
|
Liberty
|
|
|
|
|
amounts in millions
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
394
|
|
116
|
|
—
|
|
510
|
|
|
Trade and other receivables, net
|
|
|
861
|
|
52
|
|
(1)
|
|
912
|
|
|
Inventory, net
|
|
|
1,043
|
|
45
|
|
—
|
|
1,088
|
|
|
Other current assets
|
|
|
190
|
|
14
|
|
—
|
|
204
|
|
|
Total current assets
|
|
|
2,488
|
|
227
|
|
(1)
|
|
2,714
|
|
|
Investments in available-for-sale securities and other cost investments (note 2)
|
|
|
4
|
|
1,766
|
|
—
|
|
1,770
|
|
|
Investments in affiliates, accounted for using the equity method
(note 3)
|
|
|
225
|
|
1,300
|
|
—
|
|
1,525
|
|
|
Investment in Liberty Broadband measured at fair value (note 3)
|
|
|
—
|
|
2,561
|
|
—
|
|
2,561
|
|
|
Property and equipment, net
|
|
|
1,194
|
|
36
|
|
—
|
|
1,230
|
|
|
Intangible assets not subject to amortization
|
|
|
9,396
|
|
128
|
|
—
|
|
9,524
|
|
|
Intangible assets subject to amortization, net
|
|
|
1,274
|
|
39
|
|
—
|
|
1,313
|
|
|
Other assets, at cost, net of accumulated amortization
|
|
|
49
|
|
7
|
|
—
|
|
56
|
|
|
Total assets
|
|
$
|
14,630
|
|
6,064
|
|
(1)
|
|
20,693
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Intergroup payable (receivable) (note 7)
|
|
$
|
221
|
|
(221)
|
|
—
|
|
—
|
|
|
Accounts payable
|
|
|
622
|
|
19
|
|
—
|
|
641
|
|
|
Accrued liabilities
|
|
|
586
|
|
48
|
|
—
|
|
634
|
|
|
Current portion of debt (note 4)
|
|
|
356
|
|
1,431
|
|
—
|
|
1,787
|
|
|
Other current liabilities
|
|
|
126
|
|
27
|
|
(1)
|
|
152
|
|
|
Total current liabilities
|
|
|
1,911
|
|
1,304
|
|
(1)
|
|
3,214
|
|
|
Long-term debt (note 4)
|
|
|
6,042
|
|
398
|
|
—
|
|
6,440
|
|
|
Deferred income tax liabilities
|
|
|
1,226
|
|
2,531
|
|
—
|
|
3,757
|
|
|
Other liabilities
|
|
|
273
|
|
15
|
|
—
|
|
288
|
|
|
Total liabilities
|
|
|
9,452
|
|
4,248
|
|
(1)
|
|
13,699
|
|
|
Equity/Attributed net assets (liabilities)
|
|
|
5,066
|
|
1,826
|
|
—
|
|
6,892
|
|
|
Noncontrolling interests in equity of subsidiaries
|
|
|
112
|
|
(10)
|
|
—
|
|
102
|
|
|
Total liabilities and equity
|
|
$
|
14,630
|
|
6,064
|
|
(1)
|
|
20,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF OPERATIONS INFORMATION
Three months ended June 30, 2016
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1)
|
|
|
|
|
|
|
QVC
|
|
Ventures
|
|
Consolidated
|
|
|
|
|
Group
|
|
Group
|
|
Liberty
|
|
|
|
|
amounts in millions
|
|
|
Total revenue, net
|
|
$
|
2,424
|
|
139
|
|
2,563
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
1,538
|
|
83
|
|
1,621
|
|
|
Operating
|
|
|
157
|
|
20
|
|
177
|
|
|
Selling, general and administrative, including stock-based compensation (note 5)
|
|
|
261
|
|
33
|
|
294
|
|
|
Depreciation and amortization
|
|
|
214
|
|
7
|
|
221
|
|
|
|
|
|
2,170
|
|
143
|
|
2,313
|
|
|
Operating income (loss)
|
|
|
254
|
|
(4)
|
|
250
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(71)
|
|
(21)
|
|
(92)
|
|
|
Share of earnings (losses) of affiliates, net (note 3)
|
|
|
9
|
|
(9)
|
|
—
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
5
|
|
338
|
|
343
|
|
|
Gains (losses) on dispositions, net
|
|
|
—
|
|
2
|
|
2
|
|
|
Other, net
|
|
|
20
|
|
79
|
|
99
|
|
|
|
|
|
(37)
|
|
389
|
|
352
|
|
|
Earnings (loss) before income taxes
|
|
|
217
|
|
385
|
|
602
|
|
|
Income tax benefit (expense)
|
|
|
(79)
|
|
(136)
|
|
(215)
|
|
|
Net earnings (loss)
|
|
|
138
|
|
249
|
|
387
|
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
|
|
11
|
|
—
|
|
11
|
|
|
Net earnings (loss) attributable to Liberty stockholders
|
|
$
|
127
|
|
249
|
|
376
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
142
|
|
24
|
|
166
|
|
|
Selling, general and administrative, including stock-based compensation (note 5)
|
|
|
189
|
|
58
|
|
247
|
|
|
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
Six months ended June 30, 2016
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1)
|
|
|
|
|
|
|
QVC
|
|
Ventures
|
|
Consolidated
|
|
|
|
|
Group
|
|
Group
|
|
Liberty
|
|
|
|
|
amounts in millions
|
|
|
Total revenue, net
|
|
$
|
4,791
|
|
282
|
|
5,073
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
3,073
|
|
174
|
|
3,247
|
|
|
Operating, including stock-based compensation (note 5)
|
|
|
310
|
|
37
|
|
347
|
|
|
Selling, general and administrative, including stock-based compensation (note 5)
|
|
|
525
|
|
77
|
|
602
|
|
|
Depreciation and amortization
|
|
|
423
|
|
15
|
|
438
|
|
|
|
|
|
4,331
|
|
303
|
|
4,634
|
|
|
Operating income (loss)
|
|
|
460
|
|
(21)
|
|
439
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(147)
|
|
(38)
|
|
(185)
|
|
|
Share of earnings (losses) of affiliates, net (note 3)
|
|
|
30
|
|
(51)
|
|
(21)
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
4
|
|
332
|
|
336
|
|
|
Gains (losses) on dispositions, net
|
|
|
—
|
|
9
|
|
9
|
|
|
Other, net
|
|
|
25
|
|
101
|
|
126
|
|
|
|
|
|
(88)
|
|
353
|
|
265
|
|
|
Earnings (loss) before income taxes
|
|
|
372
|
|
332
|
|
704
|
|
|
Income tax benefit (expense)
|
|
|
(136)
|
|
(110)
|
|
(246)
|
|
|
Net earnings (loss)
|
|
|
236
|
|
222
|
|
458
|
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
|
|
19
|
|
—
|
|
19
|
|
|
Net earnings (loss) attributable to Liberty stockholders
|
|
$
|
217
|
|
222
|
|
439
|
|
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
|
|
|
280
|
|
46
|
|
326
|
|
|
Selling, general and administrative, including stock-based compensation (note 5)
|
|
|
379
|
|
103
|
|
482
|
|
|
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 CASH FLOWS INFORMATION
Six months ended June 30, 2016
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1)
|
|
|
|
|
|
|
QVC
|
|
Ventures
|
|
Consolidated
|
|
|
|
|
Group
|
|
Group
|
|
Liberty
|
|
|
|
|
amounts in millions
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
$
|
236
|
|
222
|
|
458
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
423
|
|
15
|
|
438
|
|
|
Stock-based compensation
|
|
|
37
|
|
18
|
|
55
|
|
|
Cash payments for stock based compensation
|
|
|
—
|
|
(91)
|
|
(91)
|
|
|
Excess tax benefit from stock based compensation
|
|
|
(7)
|
|
(1)
|
|
(8)
|
|
|
Share of (earnings) losses of affiliates, net
|
|
|
(30)
|
|
51
|
|
21
|
|
|
Cash receipts from return on equity investments
|
|
|
14
|
|
13
|
|
27
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
(4)
|
|
(332)
|
|
(336)
|
|
|
(Gains) losses on dispositions
|
|
|
—
|
|
(9)
|
|
(9)
|
|
|
Deferred income tax (benefit) expense
|
|
|
(94)
|
|
390
|
|
296
|
|
|
Other, net
|
|
|
22
|
|
(85)
|
|
(63)
|
|
|
Intergroup tax allocation
|
|
|
274
|
|
(274)
|
|
—
|
|
|
Intergroup tax (payments) receipts
|
|
|
(104)
|
|
104
|
|
—
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
Current and other assets
|
|
|
369
|
|
23
|
|
392
|
|
|
Payables and other current liabilities
|
|
|
(491)
|
|
(17)
|
|
(508)
|
|
|
Net cash provided (used) by operating activities
|
|
|
645
|
|
27
|
|
672
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Cash proceeds from dispositions
|
|
|
—
|
|
129
|
|
129
|
|
|
Investments in and loans to cost and equity investees
|
|
|
—
|
|
(42)
|
|
(42)
|
|
|
Capital expended for property and equipment
|
|
|
(110)
|
|
(15)
|
|
(125)
|
|
|
Purchases of short term and other marketable securities
|
|
|
—
|
|
(264)
|
|
(264)
|
|
|
Sales of short term and other marketable securities
|
|
|
12
|
|
1,162
|
|
1,174
|
|
|
Investment in Liberty Broadband
|
|
|
—
|
|
(2,400)
|
|
(2,400)
|
|
|
Other investing activities, net
|
|
|
(2)
|
|
1
|
|
(1)
|
|
|
Net cash provided (used) by investing activities
|
|
|
(100)
|
|
(1,429)
|
|
(1,529)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Borrowings of debt
|
|
|
778
|
|
587
|
|
1,365
|
|
|
Repayments of debt
|
|
|
(923)
|
|
(1,096)
|
|
(2,019)
|
|
|
Repurchases of QVC Group common stock
|
|
|
(417)
|
|
—
|
|
(417)
|
|
|
Minimum withholding taxes on net settlements of stock-based compensation
|
|
|
(13)
|
|
—
|
|
(13)
|
|
|
Excess tax benefit from stock-based compensation
|
|
|
7
|
|
1
|
|
8
|
|
|
Other financing activities, net
|
|
|
(13)
|
|
3
|
|
(10)
|
|
|
Net cash provided (used) by financing activities
|
|
|
(581)
|
|
(505)
|
|
(1,086)
|
|
|
Effect of foreign currency rates on cash
|
|
|
4
|
|
—
|
|
4
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(32)
|
|
(1,907)
|
|
(1,939)
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
426
|
|
2,023
|
|
2,449
|
|
|
Cash and cash equivalents at end period
|
|
$
|
394
|
|
116
|
|
510
|
|
|
|
|
|
|
|
|
|
|
|
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 losses (earnings) 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 QVC Group 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
|
|
|