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
6 Months Ended
Jun. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Financial Information for Tracking Stock Groups

 

BALANCE SHEET INFORMATION

June 30, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

420

 

485

 

905

 

Trade and other receivables, net

 

 

854

 

37

 

891

 

Inventory, net

 

 

1,096

 

 —

 

1,096

 

Other current assets

 

 

85

 

 1

 

86

 

Total current assets

 

 

2,455

 

523

 

2,978

 

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

 

 

 3

 

2,344

 

2,347

 

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

 

 

231

 

415

 

646

 

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

 

 

 —

 

3,703

 

3,703

 

Property and equipment, net

 

 

1,115

 

 1

 

1,116

 

Intangible assets not subject to amortization

 

 

9,376

 

29

 

9,405

 

Intangible assets subject to amortization, net

 

 

743

 

 4

 

747

 

Other assets, at cost, net of accumulated amortization

 

 

30

 

 1

 

31

 

Total assets

 

$

13,953

 

7,020

 

20,973

 

Liabilities and Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Intergroup payable (receivable) (note 7)

 

$

66

 

(66)

 

 —

 

Accounts payable

 

 

714

 

 —

 

714

 

Accrued liabilities

 

 

577

 

26

 

603

 

Current portion of debt (note 4)

 

 

16

 

945

 

961

 

Other current liabilities

 

 

189

 

 3

 

192

 

Total current liabilities

 

 

1,562

 

908

 

2,470

 

Long-term debt (note 4)

 

 

6,081

 

854

 

6,935

 

Deferred income tax liabilities

 

 

1,058

 

2,862

 

3,920

 

Other liabilities

 

 

145

 

 4

 

149

 

Total liabilities

 

 

8,846

 

4,628

 

13,474

 

Equity/Attributed net assets (liabilities)

 

 

5,005

 

2,401

 

7,406

 

Noncontrolling interests in equity of subsidiaries

 

 

102

 

(9)

 

93

 

Total liabilities and equity

 

$

13,953

 

7,020

 

20,973

 

 

STATEMENT OF OPERATIONS INFORMATION

Six months ended June 30, 2017

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

QVC

 

Ventures

 

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

4,669

 

10

 

4,679

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

2,999

 

 —

 

2,999

 

Operating, including stock-based compensation (note 5)

 

 

296

 

 5

 

301

 

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

 

 

471

 

27

 

498

 

Depreciation and amortization

 

 

412

 

 2

 

414

 

 

 

 

4,178

 

34

 

4,212

 

Operating income (loss)

 

 

491

 

(24)

 

467

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(149)

 

(30)

 

(179)

 

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

 

 

20

 

(56)

 

(36)

 

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

 

 

(1)

 

818

 

817

 

Other, net

 

 

(10)

 

 4

 

(6)

 

 

 

 

(140)

 

736

 

596

 

Earnings (loss) from continuing operations before income taxes

 

 

351

 

712

 

1,063

 

Income tax benefit (expense)

 

 

(128)

 

(232)

 

(360)

 

Net earnings (loss)

 

 

223

 

480

 

703

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

21

 

 —

 

21

 

Net earnings (loss) attributable to Liberty stockholders

 

$

202

 

480

 

682

 

 

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

 

 

 

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

 

(29)

 

 1

 

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

 

 

 

 4

 

332

 

336

 

Other, net

 

 

 

25

 

113

 

138

 

 

 

 

 

(88)

 

378

 

290

 

Earnings (loss) from continuing operations before income taxes

 

 

 

372

 

357

 

729

 

Income tax benefit (expense)

 

 

 

(129)

 

(121)

 

(250)

 

Net earnings (loss) from continuing operations

 

 

 

243

 

236

 

479

 

Net earnings (loss) from discontinued operations

 

 

 

 —

 

(13)

 

(13)

 

Net earnings (loss)

 

 

 

243

 

223

 

466

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

 

19

 

 —

 

19

 

Net earnings (loss) attributable to Liberty stockholders

 

$

 

224

 

223

 

447

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

QVC

 

Ventures

 

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

2,346

 

 6

 

2,352

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,494

 

 —

 

1,494

 

Operating

 

 

148

 

 2

 

150

 

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

 

 

234

 

14

 

248

 

Depreciation and amortization

 

 

205

 

 1

 

206

 

 

 

 

2,081

 

17

 

2,098

 

Operating income (loss)

 

 

265

 

(11)

 

254

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(74)

 

(15)

 

(89)

 

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

 

 

 6

 

(15)

 

(9)

 

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

 

 

 —

 

116

 

116

 

Other, net

 

 

(8)

 

 1

 

(7)

 

 

 

 

(76)

 

87

 

11

 

Earnings (loss) from continuing operations before income taxes

 

 

189

 

76

 

265

 

Income tax benefit (expense)

 

 

(69)

 

(12)

 

(81)

 

Net earnings (loss)

 

 

120

 

64

 

184

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

 9

 

 —

 

 9

 

Net earnings (loss) attributable to Liberty Interactive Corporation  shareholders

 

$

111

 

64

 

175

 

 

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

 

(11)

 

(2)

 

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

 

 

 5

 

338

 

343

 

Other, net

 

 

20

 

80

 

100

 

 

 

 

(37)

 

386

 

349

 

Earnings (loss) from continuing operations before income taxes

 

 

217

 

382

 

599

 

Income tax benefit (expense)

 

 

(76)

 

(136)

 

(212)

 

Net earnings (loss) from continuing operations

 

 

141

 

246

 

387

 

Earnings (loss) from discontinued operations

 

 

 —

 

 3

 

 3

 

Net earnings (loss)

 

 

141

 

249

 

390

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

11

 

 —

 

11

 

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders

 

$

130

 

249

 

379

 

 

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 30, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

223

 

480

 

703

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

412

 

 2

 

414

 

Stock-based compensation

 

 

30

 

 7

 

37

 

Share of (earnings) losses of affiliates, net

 

 

(20)

 

56

 

36

 

Cash receipts from return on equity investments

 

 

14

 

 —

 

14

 

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

 

 

 1

 

(818)

 

(817)

 

Deferred income tax (benefit) expense

 

 

(78)

 

341

 

263

 

Other, net

 

 

11

 

 2

 

13

 

Intergroup tax allocation

 

 

110

 

(110)

 

 —

 

Intergroup tax payments (receipts)

 

 

(155)

 

155

 

 —

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Current and other assets

 

 

291

 

 8

 

299

 

Payables and other current liabilities

 

 

(179)

 

 —

 

(179)

 

Net cash provided (used) by operating activities

 

 

660

 

123

 

783

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Investment in and loans to cost and equity investees

 

 

 —

 

(118)

 

(118)

 

Capital expended for property and equipment

 

 

(73)

 

(1)

 

(74)

 

Other investing activities, net

 

 

(28)

 

(1)

 

(29)

 

Net cash provided (used) by investing activities

 

 

(101)

 

(120)

 

(221)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

1,199

 

 —

 

1,199

 

Repayments of debt

 

 

(1,491)

 

(6)

 

(1,497)

 

Repurchases of QVC Group common stock

 

 

(152)

 

 —

 

(152)

 

Withholding taxes on net settlements of stock-based compensation

 

 

(12)

 

(1)

 

(13)

 

Other financing activities, net

 

 

(30)

 

 2

 

(28)

 

Net cash provided (used) by financing activities

 

 

(486)

 

(5)

 

(491)

 

Effect of foreign currency rates on cash

 

 

 9

 

 —

 

 9

 

Net increase (decrease) in cash and cash equivalents

 

 

82

 

(2)

 

80

 

Cash and cash equivalents at beginning of period

 

 

338

 

487

 

825

 

Cash and cash equivalents at end period

 

$

420

 

485

 

905

 

 

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)

 

$

243

 

223

 

466

 

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

 

 

 

 

 

 

 

 

(Earnings) loss from discontinued operations

 

 

 —

 

13

 

13

 

Depreciation and amortization

 

 

423

 

15

 

438

 

Stock-based compensation

 

 

37

 

18

 

55

 

Cash payments for stock based compensation

 

 

 —

 

(91)

 

(91)

 

Share of losses (earnings) of affiliates, net

 

 

(30)

 

29

 

(1)

 

Cash receipts from return on equity investments

 

 

14

 

 2

 

16

 

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

 

 

(4)

 

(332)

 

(336)

 

Deferred income tax (benefit) expense

 

 

(94)

 

404

 

310

 

Other, net

 

 

15

 

(98)

 

(83)

 

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

 

 

652

 

19

 

671

 

 

 

 

 

 

 

 

 

 

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)

 

Withholding taxes on net settlements of stock-based compensation

 

 

(13)

 

 —

 

(13)

 

Other financing activities, net

 

 

(13)

 

 3

 

(10)

 

Net cash provided (used) by financing activities

 

 

(588)

 

(506)

 

(1,094)

 

Effect of foreign currency rates on cash

 

 

 4

 

 —

 

 4

 

Net cash provided (used) by discontinued operations:

 

 

 

 

 

 

 

 

Cash provided (used) by operating activities

 

 

 —

 

 9

 

 9

 

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

 

 

 —

 

 9

 

 9

 

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