| Financial Information for Tracking Stock Groups |
BALANCE SHEET INFORMATION
March 31, 2016
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1)
|
|
|
|
|
|
|
QVC
|
|
Ventures
|
|
Consolidated
|
|
|
|
|
Group
|
|
Group
|
|
Liberty
|
|
|
|
|
amounts in millions
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
440
|
|
2,303
|
|
2,743
|
|
|
Trade and other receivables, net
|
|
|
1,040
|
|
54
|
|
1,094
|
|
|
Inventory, net
|
|
|
1,032
|
|
52
|
|
1,084
|
|
|
Short-term marketable securities
|
|
|
—
|
|
601
|
|
601
|
|
|
Other current assets
|
|
|
79
|
|
8
|
|
87
|
|
|
Total current assets
|
|
|
2,591
|
|
3,018
|
|
5,609
|
|
|
Investments in available-for-sale securities and other cost investments (note 2)
|
|
|
4
|
|
1,478
|
|
1,482
|
|
|
Investments in affiliates, accounted for using the equity method
(note 3)
|
|
|
223
|
|
1,428
|
|
1,651
|
|
|
Property and equipment, net
|
|
|
1,164
|
|
37
|
|
1,201
|
|
|
Intangible assets not subject to amortization
|
|
|
9,391
|
|
129
|
|
9,520
|
|
|
Intangible assets subject to amortization, net
|
|
|
1,419
|
|
38
|
|
1,457
|
|
|
Other assets, at cost, net of accumulated amortization
|
|
|
33
|
|
5
|
|
38
|
|
|
Total assets
|
|
$
|
14,825
|
|
6,133
|
|
20,958
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Intergroup payable (receivable) (note 7)
|
|
$
|
45
|
|
(45)
|
|
—
|
|
|
Accounts payable
|
|
|
642
|
|
25
|
|
667
|
|
|
Accrued liabilities
|
|
|
576
|
|
47
|
|
623
|
|
|
Current portion of debt (note 4)
|
|
|
358
|
|
2,247
|
|
2,605
|
|
|
Other current liabilities
|
|
|
184
|
|
111
|
|
295
|
|
|
Total current liabilities
|
|
|
1,805
|
|
2,385
|
|
4,190
|
|
|
Long-term debt (note 4)
|
|
|
6,257
|
|
14
|
|
6,271
|
|
|
Deferred income tax liabilities
|
|
|
1,290
|
|
2,164
|
|
3,454
|
|
|
Other liabilities
|
|
|
283
|
|
12
|
|
295
|
|
|
Total liabilities
|
|
|
9,635
|
|
4,575
|
|
14,210
|
|
|
Equity/Attributed net assets (liabilities)
|
|
|
5,098
|
|
1,568
|
|
6,666
|
|
|
Noncontrolling interests in equity of subsidiaries
|
|
|
92
|
|
(10)
|
|
82
|
|
|
Total liabilities and equity
|
|
$
|
14,825
|
|
6,133
|
|
20,958
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
(42)
|
|
(21)
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
(1)
|
|
(6)
|
|
(7)
|
|
|
Other, net
|
|
|
5
|
|
29
|
|
34
|
|
|
|
|
|
(51)
|
|
(36)
|
|
(87)
|
|
|
Earnings (loss) before income taxes
|
|
|
155
|
|
(53)
|
|
102
|
|
|
Income tax benefit (expense)
|
|
|
(57)
|
|
26
|
|
(31)
|
|
|
Net earnings (loss)
|
|
|
98
|
|
(27)
|
|
71
|
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
|
|
8
|
|
—
|
|
8
|
|
|
Net earnings (loss) attributable to Liberty stockholders
|
|
$
|
90
|
|
(27)
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF OPERATIONS INFORMATION
Three months ended March 31, 2015
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1)
|
|
|
|
|
|
|
QVC
|
|
Ventures
|
|
Consolidated
|
|
|
|
|
Group
|
|
Group
|
|
Liberty
|
|
|
|
|
amounts in millions
|
|
|
Total revenue, net
|
|
$
|
1,938
|
|
276
|
|
2,214
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
1,221
|
|
194
|
|
1,415
|
|
|
Operating
|
|
|
138
|
|
22
|
|
160
|
|
|
Selling, general and administrative, including stock-based compensation (note 5)
|
|
|
190
|
|
45
|
|
235
|
|
|
Depreciation and amortization
|
|
|
152
|
|
16
|
|
168
|
|
|
|
|
|
1,701
|
|
277
|
|
1,978
|
|
|
Operating income (loss)
|
|
|
237
|
|
(1)
|
|
236
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(75)
|
|
(20)
|
|
(95)
|
|
|
Share of earnings (losses) of affiliates, net (note 3)
|
|
|
24
|
|
(21)
|
|
3
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
(10)
|
|
6
|
|
(4)
|
|
|
Other, net
|
|
|
8
|
|
7
|
|
15
|
|
|
|
|
|
(53)
|
|
(28)
|
|
(81)
|
|
|
Earnings (loss) before income taxes
|
|
|
184
|
|
(29)
|
|
155
|
|
|
Income tax benefit (expense)
|
|
|
(24)
|
|
21
|
|
(3)
|
|
|
Net earnings (loss)
|
|
|
160
|
|
(8)
|
|
152
|
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
|
|
9
|
|
—
|
|
9
|
|
|
Net earnings (loss) attributable to Liberty stockholders
|
|
$
|
151
|
|
(8)
|
|
143
|
|
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)
|
|
$
|
98
|
|
(27)
|
|
71
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
209
|
|
8
|
|
217
|
|
|
Stock-based compensation
|
|
|
18
|
|
13
|
|
31
|
|
|
Cash payments for stock based compensation
|
|
|
—
|
|
(10)
|
|
(10)
|
|
|
Excess tax benefit from stock based compensation
|
|
|
(5)
|
|
—
|
|
(5)
|
|
|
Share of (earnings) losses of affiliates, net
|
|
|
(21)
|
|
42
|
|
21
|
|
|
Cash receipts from return on equity investments
|
|
|
6
|
|
9
|
|
15
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
1
|
|
6
|
|
7
|
|
|
Deferred income tax (benefit) expense
|
|
|
(30)
|
|
24
|
|
(6)
|
|
|
Other, net
|
|
|
(2)
|
|
(25)
|
|
(27)
|
|
|
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
|
|
|
240
|
|
55
|
|
295
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
Minimum withholding taxes on net settlements of stock-based compensation
|
|
|
(7)
|
|
(1)
|
|
(8)
|
|
|
Excess tax benefit from stock-based compensation
|
|
|
5
|
|
—
|
|
5
|
|
|
Other financing activities, net
|
|
|
(6)
|
|
1
|
|
(5)
|
|
|
Net cash provided (used) by financing activities
|
|
|
(169)
|
|
(52)
|
|
(221)
|
|
|
Effect of foreign currency rates on cash
|
|
|
(13)
|
|
—
|
|
(13)
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF CASH FLOWS INFORMATION
Three months ended March 31, 2015
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed (note 1)
|
|
|
|
|
|
|
QVC
|
|
Ventures
|
|
Consolidated
|
|
|
|
|
Group
|
|
Group
|
|
Liberty
|
|
|
|
|
amounts in millions
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
$
|
160
|
|
(8)
|
|
152
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
152
|
|
16
|
|
168
|
|
|
Stock-based compensation
|
|
|
12
|
|
3
|
|
15
|
|
|
Cash payments for stock based compensation
|
|
|
—
|
|
(2)
|
|
(2)
|
|
|
Excess tax benefit from stock-based compensation
|
|
|
(13)
|
|
—
|
|
(13)
|
|
|
Share of losses (earnings) of affiliates, net
|
|
|
(24)
|
|
21
|
|
(3)
|
|
|
Cash receipts from return on equity investments
|
|
|
7
|
|
6
|
|
13
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
10
|
|
(6)
|
|
4
|
|
|
Deferred income tax (benefit) expense
|
|
|
(79)
|
|
25
|
|
(54)
|
|
|
Other, net
|
|
|
(9)
|
|
1
|
|
(8)
|
|
|
Intergroup tax allocation
|
|
|
47
|
|
(47)
|
|
—
|
|
|
Intergroup tax (payments) receipts
|
|
|
(6)
|
|
6
|
|
—
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
Current and other assets
|
|
|
238
|
|
20
|
|
258
|
|
|
Payables and other current liabilities
|
|
|
(268)
|
|
(42)
|
|
(310)
|
|
|
Net cash provided (used) by operating activities
|
|
|
227
|
|
(7)
|
|
220
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Cash paid for acquisitions
|
|
|
—
|
|
(20)
|
|
(20)
|
|
|
Investments in and loans to cost and equity investees
|
|
|
(1)
|
|
(44)
|
|
(45)
|
|
|
Cash receipts from returns of equity investments
|
|
|
200
|
|
—
|
|
200
|
|
|
Capital expended for property and equipment
|
|
|
(31)
|
|
(13)
|
|
(44)
|
|
|
Purchases of short term and other marketable securities
|
|
|
(54)
|
|
(233)
|
|
(287)
|
|
|
Sales of short term and other marketable securities
|
|
|
66
|
|
247
|
|
313
|
|
|
Other investing activities, net
|
|
|
(44)
|
|
—
|
|
(44)
|
|
|
Net cash provided (used) by investing activities
|
|
|
136
|
|
(63)
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Borrowings of debt
|
|
|
351
|
|
180
|
|
531
|
|
|
Repayments of debt
|
|
|
(466)
|
|
(176)
|
|
(642)
|
|
|
Repurchases of QVC Group common stock
|
|
|
(123)
|
|
—
|
|
(123)
|
|
|
Minimum withholding taxes on net settlements of stock-based compensation
|
|
|
(12)
|
|
1
|
|
(11)
|
|
|
Excess tax benefit from stock-based compensation
|
|
|
13
|
|
—
|
|
13
|
|
|
Other financing activities, net
|
|
|
(8)
|
|
1
|
|
(7)
|
|
|
Net cash provided (used) by financing activities
|
|
|
(245)
|
|
6
|
|
(239)
|
|
|
Effect of foreign currency rates on cash
|
|
|
(10)
|
|
—
|
|
(10)
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
108
|
|
(64)
|
|
44
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
422
|
|
1,884
|
|
2,306
|
|
|
Cash and cash equivalents at end period
|
|
$
|
530
|
|
1,820
|
|
2,350
|
|
|