| 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
|
|
|