| 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
|
|
|