Quarterly report pursuant to Section 13 or 15(d)

Financial Information for Tracking Stock Groups

v3.7.0.1
Financial Information for Tracking Stock Groups
3 Months Ended
Mar. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Financial Information for Tracking Stock Groups

 

 

BALANCE SHEET INFORMATION

March 31, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

379

 

442

 

821

 

Trade and other receivables, net

 

 

933

 

36

 

969

 

Inventory, net

 

 

1,050

 

 —

 

1,050

 

Other current assets

 

 

78

 

 2

 

80

 

Total current assets

 

 

2,440

 

480

 

2,920

 

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

 

 

 4

 

2,181

 

2,185

 

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

 

 

233

 

334

 

567

 

Investment in Liberty Broadband measured at fair value (note 3)

 

 

 —

 

3,688

 

3,688

 

Property and equipment, net

 

 

1,123

 

 1

 

1,124

 

Intangible assets not subject to amortization

 

 

9,347

 

30

 

9,377

 

Intangible assets subject to amortization, net

 

 

858

 

 4

 

862

 

Other assets, at cost, net of accumulated amortization

 

 

35

 

 —

 

35

 

Total assets

 

$

14,040

 

6,718

 

20,758

 

Liabilities and Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Intergroup payable (receivable) (note 7)

 

$

172

 

(172)

 

 —

 

Accounts payable

 

 

727

 

 —

 

727

 

Accrued liabilities

 

 

579

 

22

 

601

 

Current portion of debt (note 4)

 

 

15

 

902

 

917

 

Other current liabilities

 

 

178

 

 2

 

180

 

Total current liabilities

 

 

1,671

 

754

 

2,425

 

Long-term debt (note 4)

 

 

6,169

 

844

 

7,013

 

Deferred income tax liabilities

 

 

1,111

 

2,800

 

3,911

 

Other liabilities

 

 

165

 

(3)

 

162

 

Total liabilities

 

 

9,116

 

4,395

 

13,511

 

Equity/Attributed net assets (liabilities)

 

 

4,830

 

2,332

 

7,162

 

Noncontrolling interests in equity of subsidiaries

 

 

94

 

(9)

 

85

 

Total liabilities and equity

 

$

14,040

 

6,718

 

20,758

 

 

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended March 31, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

QVC

 

Ventures

 

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

2,323

 

 4

 

2,327

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,505

 

 —

 

1,505

 

Operating

 

 

148

 

 3

 

151

 

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

 

 

237

 

13

 

250

 

Depreciation and amortization

 

 

207

 

 1

 

208

 

 

 

 

2,097

 

17

 

2,114

 

Operating income (loss)

 

 

226

 

(13)

 

213

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(75)

 

(15)

 

(90)

 

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

 

 

14

 

(41)

 

(27)

 

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

 

 

(1)

 

702

 

701

 

Other, net

 

 

(2)

 

 3

 

 1

 

 

 

 

(64)

 

649

 

585

 

Earnings (loss) from continuing operations before income taxes

 

 

162

 

636

 

798

 

Income tax benefit (expense)

 

 

(59)

 

(220)

 

(279)

 

Net earnings (loss)

 

 

103

 

416

 

519

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

12

 

 —

 

12

 

Net earnings (loss) attributable to Liberty Interactive Corporation  shareholders

 

$

91

 

416

 

507

 

 

 

 

 

 

 

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended March 31, 2016 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

2,367

 

143

 

2,510

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,535

 

91

 

1,626

 

Operating

 

 

153

 

17

 

170

 

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

 

 

264

 

44

 

308

 

Depreciation and amortization

 

 

209

 

 8

 

217

 

 

 

 

2,161

 

160

 

2,321

 

Operating income (loss)

 

 

206

 

(17)

 

189

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(76)

 

(17)

 

(93)

 

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

 

 

21

 

(18)

 

 3

 

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

 

 

(1)

 

(6)

 

(7)

 

Other, net

 

 

 5

 

33

 

38

 

 

 

 

(51)

 

(8)

 

(59)

 

Earnings (loss) from continuing operations before income taxes

 

 

155

 

(25)

 

130

 

Income tax benefit (expense)

 

 

(53)

 

15

 

(38)

 

Net earnings (loss) from continuing operations

 

 

102

 

(10)

 

92

 

Earnings (loss) from discontinued operations

 

 

 —

 

(16)

 

(16)

 

Net earnings (loss)

 

 

102

 

(26)

 

76

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

 8

 

 —

 

 8

 

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders

 

$

94

 

(26)

 

68

 

 

 

 

 

STATEMENT OF CASH FLOWS INFORMATION

Three months ended March 31, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

103

 

416

 

519

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

207

 

 1

 

208

 

Stock-based compensation

 

 

12

 

 4

 

16

 

Share of (earnings) losses of affiliates, net

 

 

(14)

 

41

 

27

 

Cash receipts from return on equity investments

 

 

 7

 

 —

 

 7

 

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

 

 

 1

 

(702)

 

(701)

 

(Gains) losses on dispositions

 

 

 2

 

(2)

 

 —

 

Deferred income tax (benefit) expense

 

 

(25)

 

280

 

255

 

Other, net

 

 

 2

 

 1

 

 3

 

Intergroup tax allocation

 

 

60

 

(60)

 

 —

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Current and other assets

 

 

244

 

10

 

254

 

Payables and other current liabilities

 

 

(154)

 

(8)

 

(162)

 

Net cash provided (used) by operating activities

 

 

445

 

(19)

 

426

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Investment in and loans to cost and equity investees

 

 

 —

 

(21)

 

(21)

 

Capital expended for property and equipment

 

 

(29)

 

(1)

 

(30)

 

Other investing activities, net

 

 

(1)

 

 —

 

(1)

 

Net cash provided (used) by investing activities

 

 

(30)

 

(22)

 

(52)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

499

 

 —

 

499

 

Repayments of debt

 

 

(699)

 

(5)

 

(704)

 

Repurchases of QVC Group common stock

 

 

(152)

 

 —

 

(152)

 

Withholding taxes on net settlements of stock-based compensation

 

 

(4)

 

 —

 

(4)

 

Other financing activities, net

 

 

(27)

 

 1

 

(26)

 

Net cash provided (used) by financing activities

 

 

(383)

 

(4)

 

(387)

 

Effect of foreign currency rates on cash

 

 

 9

 

 —

 

 9

 

Net increase (decrease) in cash and cash equivalents

 

 

41

 

(45)

 

(4)

 

Cash and cash equivalents at beginning of period

 

 

338

 

487

 

825

 

Cash and cash equivalents at end period

 

$

379

 

442

 

821

 

 

 

 

 

STATEMENT OF CASH FLOWS INFORMATION

Three months ended March 31, 2016 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

102

 

(26)

 

76

 

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

 

 

 

 

 

 

 

 

(Earnings) loss from discontinued operations

 

 

 —

 

16

 

16

 

Depreciation and amortization

 

 

209

 

 8

 

217

 

Stock-based compensation

 

 

18

 

13

 

31

 

Cash payments for stock based compensation

 

 

 —

 

(10)

 

(10)

 

Share of losses (earnings) of affiliates, net

 

 

(21)

 

18

 

(3)

 

Cash receipts from return on equity investments

 

 

 6

 

 3

 

 9

 

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

 

 

 1

 

 6

 

 7

 

Deferred income tax (benefit) expense

 

 

(30)

 

36

 

 6

 

Other, net

 

 

(6)

 

(30)

 

(36)

 

Intergroup tax allocation

 

 

49

 

(49)

 

 —

 

Intergroup tax (payments) receipts

 

 

(54)

 

54

 

 —

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Current and other assets

 

 

268

 

13

 

281

 

Payables and other current liabilities

 

 

(297)

 

(3)

 

(300)

 

Net cash provided (used) by operating activities

 

 

245

 

49

 

294

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash proceeds from dispositions

 

 

 —

 

 9

 

 9

 

Investments in and loans to cost and equity investees

 

 

 —

 

(22)

 

(22)

 

Capital expended for property and equipment

 

 

(43)

 

(8)

 

(51)

 

Purchases of short term and other marketable securities

 

 

 —

 

(116)

 

(116)

 

Sales of short term and other marketable securities

 

 

12

 

413

 

425

 

Other investing activities, net

 

 

(13)

 

 1

 

(12)

 

Net cash provided (used) by investing activities

 

 

(44)

 

277

 

233

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

515

 

108

 

623

 

Repayments of debt

 

 

(438)

 

(160)

 

(598)

 

Repurchases of QVC Group common stock

 

 

(238)

 

 —

 

(238)

 

Withholding taxes on net settlements of stock-based compensation

 

 

(7)

 

(1)

 

(8)

 

Other financing activities, net

 

 

(6)

 

 1

 

(5)

 

Net cash provided (used) by financing activities

 

 

(174)

 

(52)

 

(226)

 

Effect of foreign currency rates on cash

 

 

(13)

 

 —

 

(13)

 

Net cash provided (used) by discontinued operations:

 

 

 

 

 

 

 

 

Cash provided (used) by operating activities

 

 

 —

 

 6

 

 6

 

Cash provided (used) by investing activities

 

 

 —

 

 —

 

 —

 

Cash provided (used) by financing activities

 

 

 —

 

 —

 

 —

 

Change in available cash held by discontinued operations

 

 

 —

 

 —

 

 —

 

Net cash provided (used) by discontinued operations

 

 

 —

 

 6

 

 6

 

Net increase (decrease) in cash and cash equivalents

 

 

14

 

280

 

294

 

Cash and cash equivalents at beginning of period

 

 

426

 

2,023

 

2,449

 

Cash and cash equivalents at end period

 

$

440

 

2,303

 

2,743