Quarterly report pursuant to Section 13 or 15(d)

Financial Information for Tracking Stock Groups

v3.8.0.1
Financial Information for Tracking Stock Groups
9 Months Ended
Sep. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Financial Information for Tracking Stock Groups

 

BALANCE SHEET INFORMATION

September 30, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

383

 

512

 

895

 

Trade and other receivables, net

 

 

908

 

37

 

945

 

Inventory, net

 

 

1,197

 

 —

 

1,197

 

Other current assets

 

 

79

 

 2

 

81

 

Total current assets

 

 

2,567

 

551

 

3,118

 

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

 

 

 4

 

2,477

 

2,481

 

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

 

 

236

 

337

 

573

 

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

 

 

 —

 

4,068

 

4,068

 

Property and equipment, net

 

 

1,116

 

 1

 

1,117

 

Intangible assets not subject to amortization

 

 

9,396

 

29

 

9,425

 

Intangible assets subject to amortization, net

 

 

631

 

 4

 

635

 

Other assets, at cost, net of accumulated amortization

 

 

30

 

 —

 

30

 

Total assets

 

$

13,980

 

7,467

 

21,447

 

Liabilities and Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Intergroup payable (receivable) (note 7)

 

$

46

 

(46)

 

 —

 

Accounts payable

 

 

833

 

 —

 

833

 

Accrued liabilities

 

 

621

 

20

 

641

 

Current portion of debt (note 4)

 

 

17

 

994

 

1,011

 

Other current liabilities

 

 

158

 

 3

 

161

 

Total current liabilities

 

 

1,675

 

971

 

2,646

 

Long-term debt (note 4)

 

 

6,158

 

892

 

7,050

 

Deferred income tax liabilities

 

 

1,024

 

2,991

 

4,015

 

Other liabilities

 

 

137

 

40

 

177

 

Total liabilities

 

 

8,994

 

4,894

 

13,888

 

Equity/Attributed net assets (liabilities)

 

 

4,871

 

2,583

 

7,454

 

Noncontrolling interests in equity of subsidiaries

 

 

115

 

(10)

 

105

 

Total liabilities and equity

 

$

13,980

 

7,467

 

21,447

 

 

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

QVC

 

Ventures

 

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

7,044

 

16

 

7,060

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

4,553

 

 —

 

4,553

 

Operating, including stock-based compensation (note 5)

 

 

452

 

 9

 

461

 

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

 

 

738

 

39

 

777

 

Depreciation and amortization

 

 

592

 

 2

 

594

 

 

 

 

6,335

 

50

 

6,385

 

Operating income (loss)

 

 

709

 

(34)

 

675

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(222)

 

(45)

 

(267)

 

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

 

 

31

 

(153)

 

(122)

 

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

 

 

 —

 

1,186

 

1,186

 

Other, net

 

 

(5)

 

 6

 

 1

 

 

 

 

(196)

 

994

 

798

 

Earnings (loss) from continuing operations before income taxes

 

 

513

 

960

 

1,473

 

Income tax benefit (expense)

 

 

(159)

 

(303)

 

(462)

 

Net earnings (loss)

 

 

354

 

657

 

1,011

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

33

 

 —

 

33

 

Net earnings (loss) attributable to Liberty stockholders

 

$

321

 

657

 

978

 

 

STATEMENT OF OPERATIONS INFORMATION

Nine months ended September 30, 2016 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

7,094

 

391

 

7,485

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

4,577

 

245

 

4,822

 

Operating, including stock-based compensation

 

 

462

 

50

 

512

 

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

 

 

786

 

106

 

892

 

Depreciation and amortization

 

 

642

 

21

 

663

 

 

 

 

6,467

 

422

 

6,889

 

Operating income (loss)

 

 

627

 

(31)

 

596

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(220)

 

(57)

 

(277)

 

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

 

 

38

 

(59)

 

(21)

 

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

 

 

(2)

 

944

 

942

 

Other, net

 

 

31

 

99

 

130

 

 

 

 

(153)

 

927

 

774

 

Earnings (loss) from continuing operations before income taxes

 

 

474

 

896

 

1,370

 

Income tax benefit (expense)

 

 

(161)

 

(279)

 

(440)

 

Net earnings (loss) from continuing operations

 

 

313

 

617

 

930

 

Net earnings (loss) from discontinued operations

 

 

 —

 

14

 

14

 

Net earnings (loss)

 

 

313

 

631

 

944

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

28

 

 —

 

28

 

Net earnings (loss) attributable to Liberty stockholders

 

$

285

 

631

 

916

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

 

QVC

 

Ventures

 

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

2,375

 

 6

 

2,381

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,554

 

 —

 

1,554

 

Operating

 

 

156

 

 4

 

160

 

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

 

 

267

 

12

 

279

 

Depreciation and amortization

 

 

180

 

 —

 

180

 

 

 

 

2,157

 

16

 

2,173

 

Operating income (loss)

 

 

218

 

(10)

 

208

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(73)

 

(15)

 

(88)

 

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

 

 

11

 

(97)

 

(86)

 

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

 

 

 1

 

368

 

369

 

Other, net

 

 

 5

 

 2

 

 7

 

 

 

 

(56)

 

258

 

202

 

Earnings (loss) from continuing operations before income taxes

 

 

162

 

248

 

410

 

Income tax benefit (expense)

 

 

(31)

 

(71)

 

(102)

 

Net earnings (loss)

 

 

131

 

177

 

308

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

12

 

 —

 

12

 

Net earnings (loss) attributable to Liberty Interactive Corporation  shareholders

 

$

119

 

177

 

296

 

 

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2016 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Total revenue, net

 

$

2,303

 

109

 

2,412

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,504

 

71

 

1,575

 

Operating

 

 

152

 

13

 

165

 

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

 

 

261

 

29

 

290

 

Depreciation and amortization

 

 

219

 

 6

 

225

 

 

 

 

2,136

 

119

 

2,255

 

Operating income (loss)

 

 

167

 

(10)

 

157

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(73)

 

(19)

 

(92)

 

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

 

 

 8

 

(30)

 

(22)

 

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

 

 

(6)

 

612

 

606

 

Other, net

 

 

 6

 

(14)

 

(8)

 

 

 

 

(65)

 

549

 

484

 

Earnings (loss) from continuing operations before income taxes

 

 

102

 

539

 

641

 

Income tax benefit (expense)

 

 

(32)

 

(158)

 

(190)

 

Net earnings (loss) from continuing operations

 

 

70

 

381

 

451

 

Earnings (loss) from discontinued operations

 

 

 —

 

27

 

27

 

Net earnings (loss)

 

 

70

 

408

 

478

 

Less net earnings (loss) attributable to noncontrolling interests

 

 

 9

 

 —

 

 9

 

Net earnings (loss) attributable to Liberty Interactive Corporation shareholders

 

$

61

 

408

 

469

 

 

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2017 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

354

 

657

 

1,011

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

592

 

 2

 

594

 

Stock-based compensation

 

 

48

 

11

 

59

 

Share of (earnings) losses of affiliates, net

 

 

(31)

 

153

 

122

 

Cash receipts from return on equity investments

 

 

21

 

 —

 

21

 

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

 

 

 —

 

(1,186)

 

(1,186)

 

Deferred income tax (benefit) expense

 

 

(115)

 

471

 

356

 

Other, net

 

 

 7

 

 1

 

 8

 

Intergroup tax allocation

 

 

167

 

(167)

 

 —

 

Intergroup tax (payments) receipts

 

 

(231)

 

231

 

 —

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Current and other assets

 

 

152

 

 9

 

161

 

Payables and other current liabilities

 

 

(63)

 

(4)

 

(67)

 

Net cash provided (used) by operating activities

 

 

901

 

178

 

1,079

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Investment in and loans to cost and equity investees

 

 

 —

 

(140)

 

(140)

 

Capital expended for property and equipment

 

 

(124)

 

(2)

 

(126)

 

Other investing activities, net

 

 

(35)

 

(1)

 

(36)

 

Net cash provided (used) by investing activities

 

 

(159)

 

(143)

 

(302)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

1,689

 

 —

 

1,689

 

Repayments of debt

 

 

(1,906)

 

(11)

 

(1,917)

 

Repurchases of QVC Group common stock

 

 

(452)

 

 —

 

(452)

 

Withholding taxes on net settlements of stock-based compensation

 

 

(13)

 

(1)

 

(14)

 

Other financing activities, net

 

 

(28)

 

 2

 

(26)

 

Net cash provided (used) by financing activities

 

 

(710)

 

(10)

 

(720)

 

Effect of foreign currency rates on cash

 

 

13

 

 —

 

13

 

Net increase (decrease) in cash and cash equivalents

 

 

45

 

25

 

70

 

Cash and cash equivalents at beginning of period

 

 

338

 

487

 

825

 

Cash and cash equivalents at end period

 

$

383

 

512

 

895

 

 

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2016 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed (note 1)

 

 

 

 

    

QVC

    

Ventures

    

Consolidated

 

 

 

Group

 

Group

 

Liberty

 

 

 

amounts in millions

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

313

 

631

 

944

 

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

 

 

 

 

 

 

 

 

(Earnings) loss from discontinued operations

 

 

 —

 

(14)

 

(14)

 

Depreciation and amortization

 

 

642

 

21

 

663

 

Stock-based compensation

 

 

57

 

18

 

75

 

Cash payments for stock based compensation

 

 

 —

 

(92)

 

(92)

 

Share of losses (earnings) of affiliates, net

 

 

(38)

 

59

 

21

 

Cash receipts from return on equity investments

 

 

21

 

 3

 

24

 

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

 

 

 2

 

(944)

 

(942)

 

Deferred income tax (benefit) expense

 

 

(167)

 

589

 

422

 

Other, net

 

 

31

 

(77)

 

(46)

 

Intergroup tax allocation

 

 

301

 

(301)

 

 —

 

Intergroup tax (payments) receipts

 

 

(224)

 

224

 

 —

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Current and other assets

 

 

312

 

37

 

349

 

Payables and other current liabilities

 

 

(357)

 

(27)

 

(384)

 

Net cash provided (used) by operating activities

 

 

893

 

127

 

1,020

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash proceeds from dispositions

 

 

 —

 

350

 

350

 

Investments in and loans to cost and equity investees

 

 

 —

 

(67)

 

(67)

 

Capital expended for property and equipment

 

 

(158)

 

(19)

 

(177)

 

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

 

 

(11)

 

(3)

 

(14)

 

Net cash provided (used) by investing activities

 

 

(157)

 

(1,241)

 

(1,398)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

1,143

 

1,545

 

2,688

 

Repayments of debt

 

 

(1,340)

 

(2,289)

 

(3,629)

 

Repurchases of QVC Group common stock

 

 

(603)

 

 —

 

(603)

 

Withholding taxes on net settlements of stock-based compensation

 

 

(15)

 

(1)

 

(16)

 

Other financing activities, net

 

 

(6)

 

(22)

 

(28)

 

Net cash provided (used) by financing activities

 

 

(821)

 

(767)

 

(1,588)

 

Effect of foreign currency rates on cash

 

 

 7

 

 —

 

 7

 

Net cash provided (used) by discontinued operations:

 

 

 

 

 

 

 

 

Cash provided (used) by operating activities

 

 

 —

 

15

 

15

 

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

 

 

 —

 

15

 

15

 

Net increase (decrease) in cash and cash equivalents

 

 

(78)

 

(1,866)

 

(1,944)

 

Cash and cash equivalents at beginning of period

 

 

426

 

2,023

 

2,449

 

Cash and cash equivalents at end period

 

$

348

 

157

 

505