Qurate Retail, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Financial Information for Tracking Stock Groups (Tables)

Financial Information for Tracking Stock Groups (Tables)

6 Months Ended

Jun. 30, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

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

Condensed Income Statement

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

Condensed Cash Flow Statement

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