FORM | 10-K | ||||
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 35-2333914 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
8403 Colesville Road | 20910 | ||||||||||
Silver Spring, | Maryland | (Zip Code) | |||||||||
(Address of principal executive offices) |
Title of Each Class | Trading Symbols | Name of Each Exchange on Which Registered | ||||||
Series A Common Stock, par value $0.01 per share | DISCA | The Nasdaq Global Select Market | ||||||
Series B Common Stock, par value $0.01 per share | DISCB | The Nasdaq Global Select Market | ||||||
Series C Common Stock, par value $0.01 per share | DISCK | The Nasdaq Global Select Market |
Large accelerated filer | ý | Accelerated filer | ¨ | |||||||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ | |||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ |
Series A Common Stock, par value $0.01 per share | |||||
Series B Common Stock, par value $0.01 per share | 6,512,378 | ||||
Series C Common Stock, par value $0.01 per share |
Page | |||||
•Discovery Channel content includes Gold Rush, Naked and Afraid, Deadliest Catch, Fast N' Loud, Street Outlaws, Alaskan Bush People,Expedition Unknown, BattleBots, Undercover Billionaire and Serengeti. Discovery Channel is also home to Shark Week, the network's long-running annual summer TV event. • |
•Content on HGTV includes: Property Brothers, Brother vs. Brother, Celebrity IOU, Flip or Flop, Christina on the Coast, Flipping 101 with Tarek El Moussa, Home Town, Good Bones, Rock the Block, Design Star, House Hunters, and House Hunters International. • |
•Content on Food Network includes primetime series Beat Bobby Flay, Chopped, Diners, Drive-ins and Dives, The GreatFood Truck Race, Guy’s Grocery Games, Worst Cooks in America, and several seasonal baking championships, as well as daytime series Barefoot Contessa, Giada Entertains, Girl Meets Farm, Guy's Ranch Kitchen, The Kitchen, ThePioneer Woman, Trisha’s Southern Kitchen and Valerie's Home Cooking. • |
•Content and talent on Animal Planet include Crikey! It's the Irwins, The Zoo, The Zoo: San Diego, Pit Bulls & Parolees, Dr. Jeff: Rocky Mountain Vet, The Aquarium and Puppy Bowl. • |
•ID content includes On the Case with Paula Zahn, Homicide Hunter: Lt. Joe Kenda, In Pursuit with John Walsh, and the ID Murder Mystery franchise. • |
•Content on Travel Channel includes Ghost Adventures, The Osbournes Want to Believe, Expedition Bigfoot and Ghost Nation. • |
•The Oprah Winfrey Network ("OWN") is the first and only network named for, and inspired by a single iconic leader. OWN is a leading destination for premium scripted and unscripted programming from today's most innovative storytellers, with popular series such as Queen Sugar, Greenleaf, Iyanla: Fix My Life, and new dramas Delilah and David Makes Man. •Target viewers are African-American women aged 25 to 54. 10 |
International Subscribers and Viewers (millions) | ||||||||||
Nordic broadcast networks (a) | ||||||||||
25 | ||||||||||
25 | ||||||||||
Nove | 25 | |||||||||
DKISS | 19 | |||||||||
Discovery HD Theater | ||||||||||
Asian Food Channel | ||||||||||
Discovery History | 10 | |||||||||
Discovery Life Poland | 8 | |||||||||
Discovery Family | 7 | |||||||||
Discovery Historia | 7 | |||||||||
Discovery en Español (b) | 7 | |||||||||
Fine Living Network | ||||||||||
Discovery | ||||||||||
(a) Number of subscribers and viewers corresponds to the sum of the subscribers and viewers to each of the Nordic broadcast networks in Sweden, Norway, Finland and Denmark subject to retransmission agreements with pay-TV providers. The Nordic broadcast networks include Kanal 5, Kanal 9, and Kanal 11 in Sweden, TVNorge, MAX, FEM and VOX in Norway, TV 5, Kutonen, and Frii in Finland, and Kanal 4, Kanal 5, 6'eren, and Canal 9 in Denmark. | ||||||||||
(b) U.S. domestic subscribers data from Nielsen Media Research. |
Name | Position | |||||||
David M. Zaslav Born January 15, 1960 | President, Chief Executive Officer and a common stock director. Mr. Zaslav has served as our President and Chief Executive Officer since January 2007 and a common stock director since September 2008. Mr. Zaslav served as President, Cable & Domestic Television and New Media Distribution of NBC Universal, Inc. ("NBC"), a media and entertainment company, from May 2006 to December 2006. Mr. Zaslav served as Executive Vice President of NBC, and President of NBC Cable, a division of NBC, from October 1999 to May 2006. Mr. Zaslav is a member of the board of Sirius XM Radio Inc., Grupo Televisa S.A.B and LionsGate Entertainment Corp. | |||||||
Gunnar Wiedenfels Born September 6, 1977 | Chief Financial Officer. Mr. Wiedenfels has served as our Chief Financial Officer since April 2017. Prior to joining Discovery, Mr. Wiedenfels served as Chief Financial Officer of ProSiebenSat.1 Media SE ("ProSieben") starting in 2015. Prior to that, he served as ProSieben's Deputy Chief Financial Officer from 2014 to 2015 and served as Chief Group Controller from 2013 to 2015. Previously, he served as ProSieben's Deputy Group Controller, responsible for group-wide budget planning, budget controlling, and management reporting and as Chief Financial Officer, National, where he had commercial responsibility for the group's German- speaking free TV segment. Before this, he worked as a management consultant and engagement manager at McKinsey & Company. In May 2019, Mr. Wiedenfels joined the supervisory board of SAP SE and serves as chairman of their audit committee. | |||||||
Jean-Briac Perrette Born April 30, 1971 | President and CEO of Discovery International. Mr. Perrette became CEO of Discovery International (formerly referred to as Discovery Networks International) in June 2016 and President of Discovery Networks International in March 2014. Prior to that, Mr. Perrette served as our Chief Digital Officer from October 2011 to February 2014. Mr. Perrette served in a number of roles at NBC Universal from March 2000 to October 2011, with the last being President of Digital and Affiliate Distribution. | |||||||
Adria Alpert Romm Born March 2, 1955 | Chief People and Culture Officer since April 2019. Ms. Romm served as our Chief Human Resources and Diversity Officer from March 2014 to March 2019. Prior to that, Ms. Romm served as our Senior Executive Vice President of Human Resources from March 2007 to February 2014. Ms. Romm served as Senior Vice President of Human Resources of NBC from 2004 to 2007. Prior to 2004, Ms. Romm served as a Vice President in Human Resources for the NBC TV network and NBC staff functions. | |||||||
Bruce L. Campbell Born November 26, 1967 | Chief Development, Distribution & Legal Officer. Mr. Campbell became our Chief Distribution Officer in October 2015, Chief Development Officer in August 2010 and served as our General Counsel from December 2010 to April 2017. Mr. Campbell served as Digital Media Officer from August 2014 through October 2015. Prior to that, Mr. Campbell served as our President, Digital Media & Corporate Development from March 2007 through August 2010. Mr. Campbell also served as our corporate secretary from December 2010 to February 2012. Mr. Campbell served as Executive Vice President, Business Development of NBC from December 2005 to March 2007, and Senior Vice President, Business Development of NBC from January 2003 to November 2005. | |||||||
David Leavy Born December 24, 1969 | Chief Corporate Operating Officer. Mr. Leavy served as our Chief Corporate Operations and Communications Officer from March 2016 to June 2019 and became our Chief Corporate Operating Officer in July 2019. Prior to that, Mr. Leavy served as our Chief Communications Officer and Senior Executive Vice President, Corporate Marketing and Business Operations from August 2015 to March 2016. From December 2011 to August 2015, Mr. Leavy served as our Chief Communications Officer and Senior Executive Vice President, Corporate Marketing and Affairs. Prior to that, Mr. Leavy served as our Executive Vice President, Communications and Corporate Affairs and has served in a number of other roles at Discovery since joining in March 2000. | |||||||
Name | Position | |||||||
Lori Locke Born August 23, 1963 | Chief Accounting Officer. Ms. Locke joined Discovery as our Chief Accounting Officer in June 2019. Prior to joining Discovery, Ms. Locke served as Vice President, Corporate Controller and Principal Accounting Officer for Gannett Co., Inc. (“Gannett”), a media company, from June 2015 to May 2019. Before joining Gannett, Ms. Locke was Vice President and Corporate Assistant Controller for Leidos, Inc. (formerly SAIC, Inc.), a science, engineering and information technology company, from February 2013 to May 2015. | |||||||
Savalle C. Sims Born May 21, 1970 | Executive Vice President and General Counsel. Ms. Sims became Executive Vice President and General Counsel in April 2017. Ms. Sims served as our Executive Vice President and Deputy General Counsel from December 2014 to April 2017. Prior to that, Ms. Sims served as our Senior Vice President, Litigation and Intellectual Property from August 2011 through December 2014. Prior to joining Discovery, Ms. Sims was a partner at the law firm of Arent Fox LLP. |
December 31, 2015 | December 31, 2016 | December 31, 2017 | December 31, 2018 | December 31, 2019 | December 31, 2020 | |||||||||||||||||||||||||||||||||
DISCA | $ | 100.00 | $ | 102.74 | $ | 83.89 | $ | 92.74 | $ | 122.73 | $ | 112.79 | ||||||||||||||||||||||||||
DISCB | $ | 100.00 | $ | 107.84 | $ | 91.75 | $ | 123.94 | $ | 134.15 | $ | 119.87 | ||||||||||||||||||||||||||
DISCK | $ | 100.00 | $ | 106.19 | $ | 83.94 | $ | 91.51 | $ | 120.90 | $ | 103.85 | ||||||||||||||||||||||||||
S&P 500 | $ | 100.00 | $ | 111.96 | $ | 136.40 | $ | 130.42 | $ | 171.49 | $ | 203.04 | ||||||||||||||||||||||||||
Peer Group | $ | 100.00 | $ | 103.66 | $ | 107.06 | $ | 107.22 | $ | 138.63 | $ | 164.87 |
December 31, 2014 | December 31, 2015 | December 31, 2016 | December 31, 2017 | December 31, 2018 | December 31, 2019 | |||||||||||||||||||
DISCA | $ | 100.00 | $ | 77.45 | $ | 79.57 | $ | 64.97 | $ | 71.83 | $ | 95.05 | ||||||||||||
DISCB | $ | 100.00 | $ | 73.01 | $ | 78.73 | $ | 66.99 | $ | 90.49 | $ | 97.94 | ||||||||||||
DISCK | $ | 100.00 | $ | 74.79 | $ | 79.42 | $ | 62.78 | $ | 68.44 | $ | 90.42 | ||||||||||||
S&P 500 | $ | 100.00 | $ | 101.38 | $ | 113.51 | $ | 138.29 | $ | 132.23 | $ | 173.86 | ||||||||||||
Peer Group | $ | 100.00 | $ | 109.12 | $ | 113.12 | $ | 116.83 | $ | 117.00 | $ | 151.28 |
Period | Total Number of Series C Shares Purchased | Average Price Paid per Share: Series C (a) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||
October 1, 2019 - October 31, 2019 | 1,134,931 | $ | 24.77 | 1,134,931 | $ | 672,034,973 | ||||||||
November 1, 2019 - November 30, 2019 | 4,974,403 | $ | 28.94 | 4,974,403 | $ | 528,062,205 | ||||||||
December 1, 2019- December 31, 2019 | 5,487,478 | $ | 30.02 | 5,487,478 | $ | 363,320,925 | ||||||||
Total | 11,596,812 | 11,596,812 |
Period | Total Number of Series C Shares Purchased | Average Price Paid per Share: Series C (a) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
October 1, 2020 - October 31, 2020 | 7,116,503 | $ | 19.01 | 7,116,503 | $ | 1,477,152,160 | ||||||||||||||||||||
November 1, 2020 - November 30, 2020 | 3,808,891 | $ | 20.41 | 3,808,891 | $ | 1,399,423,245 | ||||||||||||||||||||
December 1, 2020 - December 31, 2020 | — | $ | — | — | $ | 1,399,423,245 | ||||||||||||||||||||
Total | 10,925,394 | 10,925,394 |
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Statement of Operations Information: | ||||||||||||||||||||
Revenues | $ | 11,144 | $ | 10,553 | $ | 6,873 | $ | 6,497 | $ | 6,394 | ||||||||||
Operating income | 3,009 | 1,934 | 713 | 2,058 | 1,985 | |||||||||||||||
Net income (loss) | 2,213 | 681 | (313 | ) | 1,218 | 1,048 | ||||||||||||||
Net income (loss) available to Discovery, Inc. | 2,069 | 594 | (337 | ) | 1,194 | 1,034 | ||||||||||||||
Basic earnings (loss) per share available to Discovery, Inc. Series A, B and C common stockholders | $ | 2.90 | $ | 0.86 | $ | (0.59 | ) | $ | 1.97 | $ | 1.59 | |||||||||
Diluted earnings (loss) per share available to Discovery, Inc. Series A, B and C common stockholders | $ | 2.88 | $ | 0.86 | $ | (0.59 | ) | $ | 1.96 | $ | 1.58 | |||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 529 | 498 | 384 | 401 | 432 | |||||||||||||||
Diluted | 711 | 688 | 576 | 610 | 656 | |||||||||||||||
Selected Balance Sheet Information: | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,552 | $ | 986 | $ | 7,309 | $ | 300 | $ | 390 | ||||||||||
Total assets | 33,735 | 32,550 | 22,555 | 15,672 | 15,803 | |||||||||||||||
Deferred income tax | 1,691 | 1,811 | 319 | 467 | 495 | |||||||||||||||
Long-term debt: | ||||||||||||||||||||
Current portion | 609 | 1,819 | 30 | 82 | 119 | |||||||||||||||
Long-term portion | 14,810 | 14,974 | 14,755 | 7,841 | 7,616 | |||||||||||||||
Total liabilities | 21,769 | 22,033 | 17,532 | 10,262 | 10,111 | |||||||||||||||
Redeemable noncontrolling interests | 442 | 415 | 413 | 243 | 241 | |||||||||||||||
Equity attributable to Discovery, Inc. | 9,891 | 8,386 | 4,610 | 5,167 | 5,451 | |||||||||||||||
Total equity | 11,524 | 10,102 | 4,610 | 5,167 | 5,451 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual | Actual | Pro Forma Adjustments | Pro Forma Combined | Actual Change | Pro Forma Combined Change | Pro Forma Combined Change Ex-FX | 2020 | 2019 | % Change | % Change (ex-FX) | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 6,044 | $ | 5,514 | $ | 425 | $ | 5,939 | $ | 530 | 10 | % | $ | 105 | 2 | % | $ | 203 | 3 | % | Advertising | $ | 5,583 | $ | 6,044 | (8) | % | (7) | % | |||||||||||||||||||||||||||||
Distribution | 4,835 | 4,538 | 178 | 4,716 | 297 | 7 | % | 119 | 3 | % | 237 | 5 | % | Distribution | 4,866 | 4,835 | 1 | % | 1 | % | ||||||||||||||||||||||||||||||||||||||
Other | 265 | 501 | 20 | 521 | (236 | ) | (47 | )% | (256 | ) | (49 | )% | (238 | ) | (47 | )% | Other | 222 | 265 | (16) | % | (17) | % | |||||||||||||||||||||||||||||||||||
Total revenues | 11,144 | 10,553 | 623 | 11,176 | 591 | 6 | % | (32 | ) | — | % | 202 | 2 | % | Total revenues | 10,671 | 11,144 | (4) | % | (4) | % | |||||||||||||||||||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | 3,819 | 3,935 | 205 | 4,140 | (116 | ) | (3 | )% | (321 | ) | (8 | )% | (240 | ) | (6 | )% | Costs of revenues, excluding depreciation and amortization | 3,860 | 3,819 | 1 | % | 1 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | 2,788 | 2,620 | 132 | 2,752 | 168 | 6 | % | 36 | 1 | % | 94 | 3 | % | Selling, general and administrative | 2,722 | 2,788 | (2) | % | (1) | % | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,347 | 1,398 | (76 | ) | 1,322 | (51 | ) | (4 | )% | 25 | 2 | % | 85 | 7 | % | Depreciation and amortization | 1,359 | 1,347 | 1 | % | 1 | % | ||||||||||||||||||||||||||||||||||||
Impairment of goodwill | 155 | — | — | — | 155 | NM | 155 | NM | 155 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of goodwill and other intangible assets | Impairment of goodwill and other intangible assets | 124 | 155 | (20) | % | (21) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and other charges | 26 | 750 | 10 | 760 | (724 | ) | (97 | )% | (734 | ) | (97 | )% | (727 | ) | (97 | )% | Restructuring and other charges | 91 | 26 | NM | NM | |||||||||||||||||||||||||||||||||||||
Gain on disposition | — | (84 | ) | — | (84 | ) | 84 | NM | 84 | NM | 84 | NM | ||||||||||||||||||||||||||||||||||||||||||||||
Total costs and expenses | 8,135 | 8,619 | 271 | 8,890 | (484 | ) | (6 | )% | (755 | ) | (8 | )% | (549 | ) | (6 | )% | Total costs and expenses | 8,156 | 8,135 | — | % | — | % | |||||||||||||||||||||||||||||||||||
Operating income | 3,009 | 1,934 | 352 | 2,286 | 1,075 | 56 | % | 723 | 32 | % | 751 | 33 | % | Operating income | 2,515 | 3,009 | (16) | % | (15) | % | ||||||||||||||||||||||||||||||||||||||
Interest expense, net | (677 | ) | (729 | ) | 52 | (7 | )% | Interest expense, net | (648) | (677) | (4) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (28 | ) | — | (28 | ) | NM | Loss on extinguishment of debt | (76) | (28) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss from equity investees, net | (2 | ) | (63 | ) | 61 | (97 | )% | Loss from equity investees, net | (105) | (2) | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Other expense, net | (8 | ) | (120 | ) | 112 | (93 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | Other income (expense), net | 42 | (8) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 2,294 | 1,022 | 1,272 | NM | Income before income taxes | 1,728 | 2,294 | (25) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | (81 | ) | (341 | ) | 260 | (76 | )% | Income tax expense | (373) | (81) | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | 2,213 | 681 | 1,532 | NM | Net income | 1,355 | 2,213 | (39) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (128 | ) | (67 | ) | (61 | ) | 91 | % | Net income attributable to noncontrolling interests | (124) | (128) | (3) | % | |||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | (16 | ) | (20 | ) | 4 | (20 | )% | Net income attributable to redeemable noncontrolling interests | (12) | (16) | (25) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Net income available to Discovery, Inc. | $ | 2,069 | $ | 594 | 1,475 | NM | Net income available to Discovery, Inc. | $ | 1,219 | $ | 2,069 | (41) | % |
Year Ended December 31, | ||||||||
2019 | 2018 | |||||||
Foreign currency gains (losses), net | $ | 17 | $ | (93 | ) | |||
(Losses) gains on derivative instruments | (52 | ) | 50 | |||||
Remeasurement gain on previously held equity interest | 14 | — | ||||||
Change in the value of common stock investments with readily determinable fair value | (26 | ) | (88 | ) | ||||
Gain on sale of equity method investments | 13 | — | ||||||
Interest income | 22 | 15 | ||||||
Other income (expense), net | 4 | (4 | ) | |||||
Total other expense, net | $ | (8 | ) | $ | (120 | ) |
Year Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Foreign currency (losses) gains, net | $ | (115) | $ | 17 | ||||||||||
Gain on sale of investment with readily determinable fair value | 101 | — | ||||||||||||
Gains (losses) on derivatives not designated as hedges | 29 | (52) | ||||||||||||
Change in the value of investments with readily determinable fair value | 28 | (26) | ||||||||||||
Expenses from debt modification | (11) | — | ||||||||||||
Interest income | 10 | 22 | ||||||||||||
Gain on sale of equity method investments | 2 | 13 | ||||||||||||
Remeasurement gain on previously held equity interest | — | 14 | ||||||||||||
Other (expense) income, net | (2) | 4 | ||||||||||||
Total other income (expense), net | $ | 42 | $ | (8) |
Year Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Pre-tax income at U.S. federal statutory income tax rate | $ | 363 | 21 | % | $ | 482 | 21 | % | ||||||||||||||||||
State and local income taxes, net of federal tax benefit | (10) | — | % | 27 | 1 | % | ||||||||||||||||||||
Effect of foreign operations | 7 | — | % | (21) | (1) | % | ||||||||||||||||||||
Noncontrolling interest adjustment | (29) | (2) | % | (30) | (1) | % | ||||||||||||||||||||
Impairment of goodwill | 25 | 2 | % | 32 | 1 | % | ||||||||||||||||||||
Deferred tax adjustment | (22) | (1) | % | — | — | % | ||||||||||||||||||||
Non-deductible compensation | 17 | 1 | % | 22 | 1 | % | ||||||||||||||||||||
Change in uncertain tax positions | 17 | 1 | % | 3 | — | % | ||||||||||||||||||||
Legal entity restructuring, deferred tax impact | — | — | % | (445) | (19) | % | ||||||||||||||||||||
Renewable energy investments tax credits | — | — | % | (1) | — | % | ||||||||||||||||||||
Other, net | $ | 5 | — | % | $ | 12 | 1 | % | ||||||||||||||||||
Income tax expense | $ | 373 | 22 | % | $ | 81 | 4 | % |
Year Ended December 31, | ||||||||||||||
2019 | 2018 | |||||||||||||
U.S. federal statutory income tax provision | $ | 482 | 21 | % | $ | 215 | 21 | % | ||||||
State and local income taxes, net of federal tax benefit | 27 | 1 | % | 10 | 1 | % | ||||||||
Effect of foreign operations | (21 | ) | (1 | )% | 111 | 11 | % | |||||||
Change in uncertain tax positions | 3 | — | % | 37 | 3 | % | ||||||||
Legal entity restructuring, deferred tax impact | (445 | ) | (19 | )% | — | — | % | |||||||
Impairment of goodwill | 32 | 1 | % | — | — | % | ||||||||
Renewable energy investments tax credits (See Note 4) | (1 | ) | — | % | (12 | ) | (1 | )% | ||||||
Noncontrolling interest adjustment | (30 | ) | (1 | )% | (18 | ) | (2 | )% | ||||||
U.S. legislative changes | — | — | % | (19 | ) | (2 | )% | |||||||
Non-deductible compensation | 22 | 1 | % | 20 | 2 | % | ||||||||
Other, net | 12 | 1 | % | (3 | ) | — | % | |||||||
Income tax expense | $ | 81 | 4 | % | $ | 341 | 33 | % |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | % Change | ||||||||||||||||||
Net income available to Discovery, Inc. | $ | 1,219 | $ | 2,069 | (41) | % | ||||||||||||||
Net income attributable to redeemable noncontrolling interests | 12 | 16 | (25) | % | ||||||||||||||||
Net income attributable to noncontrolling interests | 124 | 128 | (3) | % | ||||||||||||||||
Income tax expense | 373 | 81 | NM | |||||||||||||||||
Income before income taxes | 1,728 | 2,294 | (25) | % | ||||||||||||||||
Other (income) expense, net | (42) | 8 | NM | |||||||||||||||||
Loss from equity investees, net | 105 | 2 | NM | |||||||||||||||||
Loss on extinguishment of debt | 76 | 28 | NM | |||||||||||||||||
Interest expense, net | 648 | 677 | (4) | % | ||||||||||||||||
Operating income | 2,515 | 3,009 | (16) | % | ||||||||||||||||
Depreciation and amortization | 1,359 | 1,347 | 1 | % | ||||||||||||||||
Impairment of goodwill and other intangible assets | 124 | 155 | (20) | % | ||||||||||||||||
Employee share-based compensation | 99 | 137 | (28) | % | ||||||||||||||||
Restructuring and other charges | 91 | 26 | NM | |||||||||||||||||
Transaction and integration costs | 6 | 26 | (77) | % | ||||||||||||||||
Loss on asset disposition | 2 | — | NM | |||||||||||||||||
Settlement of a withholding tax claim | — | (29) | NM | |||||||||||||||||
Adjusted OIBDA | $ | 4,196 | $ | 4,671 | (10) | % | ||||||||||||||
Adjusted OIBDA: | ||||||||||||||||||||
U.S. Networks | 3,975 | 4,117 | (3) | % | ||||||||||||||||
International Networks | 723 | 1,057 | (32) | % | ||||||||||||||||
Corporate, inter-segment eliminations, and other | (502) | (503) | — | % | ||||||||||||||||
Adjusted OIBDA | $ | 4,196 | $ | 4,671 | (10) | % |
Year Ended December 31, | |||||||||||
2019 | 2018 | % Change | |||||||||
Net income available to Discovery, Inc. | $ | 2,069 | $ | 594 | NM | ||||||
Net income attributable to redeemable noncontrolling interests | 16 | 20 | (20 | )% | |||||||
Net income attributable to noncontrolling interests | 128 | 67 | 91 | % | |||||||
Income tax expense | 81 | 341 | (76 | )% | |||||||
Income before income taxes | 2,294 | 1,022 | NM | ||||||||
Other expense, net | 8 | 120 | (93 | )% | |||||||
Loss from equity investees, net | 2 | 63 | (97 | )% | |||||||
Loss on extinguishment of debt | 28 | — | NM | ||||||||
Interest expense, net | 677 | 729 | (7 | )% | |||||||
Operating income | 3,009 | 1,934 | 56 | % | |||||||
Gain on disposition | — | (84 | ) | NM | |||||||
Restructuring and other charges | 26 | 750 | (97 | )% | |||||||
Impairment of goodwill | 155 | — | NM | ||||||||
Depreciation and amortization | 1,347 | 1,398 | (4 | )% | |||||||
Employee share-based compensation | 137 | 80 | 71 | % | |||||||
Transaction and integration costs | 26 | 110 | (76 | )% | |||||||
Settlement of a withholding tax claim | (29 | ) | — | NM | |||||||
Total Adjusted OIBDA | $ | 4,671 | $ | 4,188 | 12 | % | |||||
Adjusted OIBDA: | |||||||||||
U.S. Networks | 4,117 | 3,500 | 18 | % | |||||||
International Networks | 1,057 | 1,077 | (2 | )% | |||||||
Other | 4 | 3 | 33 | % | |||||||
Corporate and inter-segment eliminations | (507 | ) | (392 | ) | 29 | % | |||||
Total Adjusted OIBDA | $ | 4,671 | $ | 4,188 | 12 | % |
Year Ended December 31, | |||||||||||
2019 | 2018 | % Change | |||||||||
Revenue: | |||||||||||
U.S. Networks | $ | 7,092 | $ | 6,350 | 12 | % | |||||
International Networks | 4,041 | 4,149 | (3 | )% | |||||||
Other | 11 | 54 | (80 | )% | |||||||
Corporate and inter-segment eliminations | — | — | NM | ||||||||
Total revenue | 11,144 | 10,553 | 6 | % | |||||||
Costs of revenues, excluding depreciation and amortization | 3,819 | 3,935 | (3 | )% | |||||||
Selling, general and administrative (a) | 2,654 | 2,430 | 9 | % | |||||||
Adjusted OIBDA | $ | 4,671 | $ | 4,188 | 12 | % |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | % Change | ||||||||||||||||||
Revenue: | ||||||||||||||||||||
U.S. Networks | $ | 6,949 | $ | 7,092 | (2) | % | ||||||||||||||
International Networks | 3,713 | 4,041 | (8) | % | ||||||||||||||||
Corporate, inter-segment eliminations, and other | 9 | 11 | (18) | % | ||||||||||||||||
Total revenue | 10,671 | 11,144 | (4) | % | ||||||||||||||||
Costs of revenues, excluding depreciation and amortization | 3,860 | 3,819 | 1 | % | ||||||||||||||||
Selling, general and administrative (a) | 2,615 | 2,654 | (1) | % | ||||||||||||||||
Adjusted OIBDA | $ | 4,196 | $ | 4,671 | (10) | % | ||||||||||||||
(a) Selling, general and administrative expenses exclude employee share-based compensation, third-party transaction and integration costs related to the acquisition of Scripps Networks and other transactions, and for 2019, exclude the settlement of a withholding tax claim. |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Actual | Actual | Pro Forma Adjustments | Pro Forma Combined | Actual Change | Pro Forma Combined Change | 2020 | 2019 | Change % | ||||||||||||||||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 4,245 | $ | 3,749 | $ | 356 | $ | 4,105 | $ | 496 | 13 | % | $ | 140 | 3 | % | Advertising | $ | 4,012 | $ | 4,245 | (5) | % | |||||||||||||||||||||||
Distribution | 2,739 | 2,456 | 156 | 2,612 | 283 | 12 | % | 127 | 5 | % | Distribution | 2,852 | 2,739 | 4 | % | |||||||||||||||||||||||||||||||
Other | 108 | 145 | 7 | 152 | (37 | ) | (26 | )% | (44 | ) | (29 | )% | Other | 85 | 108 | (21) | % | |||||||||||||||||||||||||||||
Total revenues | 7,092 | 6,350 | 519 | 6,869 | 742 | 12 | % | 223 | 3 | % | Total revenues | 6,949 | 7,092 | (2) | % | |||||||||||||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | 1,800 | 1,748 | 153 | 1,901 | 52 | 3 | % | (101 | ) | (5 | )% | Costs of revenues, excluding depreciation and amortization | 1,843 | 1,800�� | 2 | % | ||||||||||||||||||||||||||||||
Selling, general and administrative | 1,175 | 1,102 | 111 | 1,213 | 73 | 7 | % | (38 | ) | (3 | )% | Selling, general and administrative | 1,131 | 1,175 | (4) | % | ||||||||||||||||||||||||||||||
Total Adjusted OIBDA | 4,117 | 3,500 | 255 | 3,755 | 617 | 18 | % | 362 | 10 | % | ||||||||||||||||||||||||||||||||||||
Employee share-based compensation | — | (1 | ) | — | (1 | ) | 1 | NM | 1 | NM | ||||||||||||||||||||||||||||||||||||
Adjusted OIBDA | Adjusted OIBDA | 3,975 | 4,117 | (3) | % | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 950 | 985 | (95 | ) | 890 | (35 | ) | (4 | )% | 60 | 7 | % | Depreciation and amortization | 899 | 950 | |||||||||||||||||||||||||||||||
Restructuring and other charges | 15 | 322 | 5 | 327 | (307 | ) | (95 | )% | (312 | ) | (95 | )% | Restructuring and other charges | 41 | 15 | |||||||||||||||||||||||||||||||
Transactions and integration costs | — | 14 | — | 14 | (14 | ) | NM | (14 | ) | NM | ||||||||||||||||||||||||||||||||||||
Inter-segment eliminations | 7 | (2 | ) | (5 | ) | (7 | ) | 9 | NM | 14 | NM | Inter-segment eliminations | 4 | 7 | ||||||||||||||||||||||||||||||||
Operating income | $ | 3,145 | $ | 2,182 | $ | 350 | $ | 2,532 | $ | 963 | 44 | % | $ | 613 | 24 | % | Operating income | $ | 3,031 | $ | 3,145 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual | Actual | Pro Forma Adjustments | Pro Forma Combined | Actual Change | Pro Forma Combined Change | Pro Forma Combined Change Ex-FX | 2020 | 2019 | Change % | Change % (ex-FX) | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising | $ | 1,799 | $ | 1,765 | $ | 69 | $ | 1,834 | $ | 34 | 2 | % | $ | (35 | ) | (2 | )% | $ | 63 | 4 | % | Advertising | $ | 1,571 | $ | 1,799 | (13) | % | (12) | % | ||||||||||||||||||||||||||||
Distribution | 2,096 | 2,082 | 22 | 2,104 | 14 | 1 | % | (8 | ) | — | % | 109 | 5 | % | Distribution | 2,014 | 2,096 | (4) | % | (3) | % | |||||||||||||||||||||||||||||||||||||
Other | 146 | 302 | 13 | 315 | (156 | ) | (52 | )% | (169 | ) | (54 | )% | (152 | ) | (50 | )% | Other | 128 | 146 | (12) | % | (15) | % | |||||||||||||||||||||||||||||||||||
Total revenues | 4,041 | 4,149 | 104 | 4,253 | (108 | ) | (3 | )% | (212 | ) | (5 | )% | 20 | — | % | Total revenues | 3,713 | 4,041 | (8) | % | (7) | % | ||||||||||||||||||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | 2,016 | 2,169 | 52 | 2,221 | (153 | ) | (7 | )% | (205 | ) | (9 | )% | (126 | ) | (6 | )% | Costs of revenues, excluding depreciation and amortization | 2,004 | 2,016 | (1) | % | (1) | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | 968 | 903 | 27 | 930 | 65 | 7 | % | 38 | 4 | % | 95 | 11 | % | Selling, general and administrative | 986 | 968 | 2 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||
Total Adjusted OIBDA | 1,057 | 1,077 | 25 | 1,102 | (20 | ) | (2 | )% | (45 | ) | (4 | )% | 51 | 5 | % | |||||||||||||||||||||||||||||||||||||||||||
Adjusted OIBDA | Adjusted OIBDA | 723 | 1,057 | (32) | % | (28)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 328 | 315 | 19 | 334 | 13 | 4 | % | (6 | ) | (2 | )% | 54 | 19 | % | Depreciation and amortization | 374 | 328 | |||||||||||||||||||||||||||||||||||||||||
Impairment of goodwill | 155 | — | — | — | 155 | NM | 155 | NM | 155 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of goodwill and other intangible assets | Impairment of goodwill and other intangible assets | 124 | 155 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and other charges | 20 | 307 | 2 | 309 | (287 | ) | (93 | )% | (289 | ) | (94 | )% | (282 | ) | (93 | )% | Restructuring and other charges | 29 | 20 | |||||||||||||||||||||||||||||||||||||||
Transaction and integration costs | — | 3 | — | 3 | (3 | ) | NM | (3 | ) | NM | (3 | ) | NM | Transaction and integration costs | 4 | — | ||||||||||||||||||||||||||||||||||||||||||
Inter-segment eliminations | 20 | 18 | 4 | 22 | 2 | 11 | % | (2 | ) | (9 | )% | (3 | ) | (13 | )% | Inter-segment eliminations | 1 | 20 | ||||||||||||||||||||||||||||||||||||||||
Settlement of a withholding tax claim | (29 | ) | — | — | — | (29 | ) | NM | (29 | ) | NM | (29 | ) | NM | Settlement of a withholding tax claim | — | (29) | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 563 | $ | 434 | $ | — | $ | 434 | $ | 129 | 30 | % | $ | 129 | 30 | % | $ | 159 | 37 | % | Operating income | $ | 191 | $ | 563 |
Year Ended December 31, | |||||||||||
2019 | 2018 | % Change | |||||||||
Revenues | $ | 11 | $ | 54 | (80 | )% | |||||
Costs of revenues, excluding depreciation and amortization | 1 | 17 | (94 | )% | |||||||
Selling, general and administrative | 6 | 34 | (82 | )% | |||||||
Adjusted OIBDA | 4 | 3 | 33 | % | |||||||
Depreciation and amortization | — | 2 | NM | ||||||||
Restructuring and other charges | — | 1 | NM | ||||||||
Gain on disposition | — | (85 | ) | NM | |||||||
Inter-segment eliminations | (13 | ) | (12 | ) | 8 | % | |||||
Operating income | $ | 17 | $ | 97 | (82 | )% |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Actual | Actual | Pro Forma Adjustments | Pro Forma Combined | Actual Change | Pro Forma Combined Change | |||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | $ | 9 | $ | 11 | (18) | % | |||||||||||||||||||||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | 2 | 1 | — | 1 | 1 | NM | 1 | NM | Costs of revenues, excluding depreciation and amortization | 13 | 3 | NM | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | 505 | 391 | 21 | 412 | 114 | 29 | % | 93 | 23 | % | Selling, general and administrative | 498 | 511 | (3) | % | |||||||||||||||||||||||||||||||
Adjusted OIBDA | (507 | ) | (392 | ) | (21 | ) | (413 | ) | (115 | ) | 29 | % | (94 | ) | 23 | % | Adjusted OIBDA | (502) | (503) | — | % | |||||||||||||||||||||||||
Employee share-based compensation | 137 | 81 | 1 | 82 | 56 | 69 | % | 55 | 67 | % | Employee share-based compensation | 99 | 137 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 69 | 96 | — | 96 | (27 | ) | (28 | )% | (27 | ) | (28 | )% | Depreciation and amortization | 86 | 69 | |||||||||||||||||||||||||||||||
Restructuring and other charges | (9 | ) | 120 | 3 | 123 | (129 | ) | NM | (132 | ) | NM | Restructuring and other charges | 21 | (9) | ||||||||||||||||||||||||||||||||
Transaction and integration costs | 26 | 93 | (28 | ) | 65 | (67 | ) | (72 | )% | (39 | ) | (60 | )% | Transaction and integration costs | 2 | 26 | ||||||||||||||||||||||||||||||
Loss on disposition | — | 1 | — | 1 | (1 | ) | NM | (1 | ) | NM | ||||||||||||||||||||||||||||||||||||
Loss on asset disposition | Loss on asset disposition | 2 | — | |||||||||||||||||||||||||||||||||||||||||||
Inter-segment eliminations | (14 | ) | (4 | ) | 1 | (3 | ) | (10 | ) | NM | (11 | ) | NM | Inter-segment eliminations | (5) | (27) | ||||||||||||||||||||||||||||||
Operating loss | $ | (716 | ) | $ | (779 | ) | $ | 2 | $ | (777 | ) | $ | 63 | (8 | )% | $ | 61 | (8 | )% | Operating loss | $ | (707) | $ | (699) |
Consolidated | Year Ended December 31, | |||||||||||||
2019 | 2018 | % Change (Reported) | % Change (ex-FX) | |||||||||||
Revenues: | ||||||||||||||
Advertising | $ | 6,044 | $ | 5,514 | 10 | % | 12 | % | ||||||
Distribution | 4,835 | 4,538 | 7 | % | 9 | % | ||||||||
Other | 265 | 501 | (47 | )% | (45 | )% | ||||||||
Total revenues | 11,144 | 10,553 | 6 | % | 8 | % | ||||||||
Costs of revenue, excluding depreciation and amortization | 3,819 | 3,935 | (3 | )% | (1 | )% | ||||||||
Selling, general and administrative expense | 2,654 | 2,430 | 9 | % | 11 | % | ||||||||
Adjusted OIBDA | $ | 4,671 | $ | 4,188 | 12 | % | 14 | % |
International Networks | Year Ended December 31, | |||||||||||||
2019 | 2018 | % Change (Reported) | % Change (ex-FX) | |||||||||||
Revenues: | ||||||||||||||
Advertising | $ | 1,799 | $ | 1,765 | 2 | % | 8 | % | ||||||
Distribution | 2,096 | 2,082 | 1 | % | 7 | % | ||||||||
Other | 146 | 302 | (52 | )% | (48 | )% | ||||||||
Total revenues | 4,041 | 4,149 | (3 | )% | 3 | % | ||||||||
Costs of revenue, excluding depreciation and amortization | 2,016 | 2,169 | (7 | )% | (3 | )% | ||||||||
Selling, general and administrative expenses | 968 | 903 | 7 | % | 13 | % | ||||||||
Adjusted OIBDA | $ | 1,057 | $ | 1,077 | (2 | )% | 8 | % |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | $ | 1,552 | $ | 986 | ||||||||||||||||
Cash provided by operating activities | 2,739 | 3,399 | ||||||||||||||||||
Cash used in investing activities | (703) | (438) | ||||||||||||||||||
Cash used in financing activities | (1,549) | (2,357) | ||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 83 | (38) | ||||||||||||||||||
Net change in cash, cash equivalents, and restricted cash | 570 | 566 | ||||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 2,122 | $ | 1,552 |
Year Ended December 31, | ||||||||
2019 | 2018 | |||||||
Cash and cash equivalents, beginning of period | $ | 986 | $ | 7,309 | ||||
Cash provided by operating activities | 3,399 | 2,576 | ||||||
Cash used in investing activities | (438 | ) | (8,593 | ) | ||||
Cash used in financing activities | (2,357 | ) | (283 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (38 | ) | (23 | ) | ||||
Net change in cash and cash equivalents | 566 | (6,323 | ) | |||||
Cash and cash equivalents, end of period | $ | 1,552 | $ | 986 |
December 31, 2019 | ||||||||||||||||
Total Capacity | Outstanding Letters of Credit | Outstanding Indebtedness | Unused Capacity | |||||||||||||
Cash and cash equivalents | $ | 1,552 | $ | — | $ | — | $ | 1,552 | ||||||||
Revolving credit facility and commercial paper program (a) | 2,500 | 1 | — | 2,499 | ||||||||||||
Senior notes (b) | 15,534 | — | 15,534 | — | ||||||||||||
Program financing line of credit | 26 | — | 10 | 16 | ||||||||||||
Total | $ | 19,612 | $ | 1 | $ | 15,544 | $ | 4,067 |
December 31, 2020 | ||||||||||||||||||||||||||
Total Capacity | Outstanding Letters of Credit | Outstanding Indebtedness | Unused Capacity | |||||||||||||||||||||||
Cash and cash equivalents | $ | 2,091 | $ | — | $ | — | $ | 2,091 | ||||||||||||||||||
Revolving credit facility and commercial paper program | 2,500 | — | — | 2,500 | ||||||||||||||||||||||
Senior notes (a) | 15,848 | — | 15,848 | — | ||||||||||||||||||||||
Total | $ | 20,439 | $ | — | $ | 15,848 | $ | 4,591 | ||||||||||||||||||
(a) Interest on senior notes is paid annually, semi-annually or quarterly. Our senior notes outstanding as of December 31, 2020 had interest rates that ranged from 1.90% to 6.35% and will mature between 2021 and 2055. |
December 31, 2020 | ||||||||||||||
Current assets | $ | 2,308 | ||||||||||||
Non-guarantor intercompany trade receivables, net | 217 | |||||||||||||
Noncurrent assets | 5,905 | |||||||||||||
Current liabilities | 915 | |||||||||||||
Noncurrent liabilities | 16,500 |
Year Ended December 31, 2020 | ||||||||||||||
Revenues | $ | 2,036 | ||||||||||||
Operating income | 1,041 | |||||||||||||
Net income | 162 | |||||||||||||
Net income available to Discovery, Inc. | 146 |
Payments Due by Period | Payments Due by Period | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||||||||||||||||||||||||||||||
Long-term debt: | Long-term debt: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments | $ | 15,544 | $ | 609 | $ | 1,872 | $ | 2,990 | $ | 10,073 | Principal payments | $ | 15,848 | $ | 335 | $ | 1,587 | $ | 2,293 | $ | 11,633 | |||||||||||||||||||||||||||||||
Interest payments | 8,598 | 633 | 1,191 | 1,029 | 5,745 | Interest payments | 10,646 | 646 | 1,242 | 1,111 | 7,647 | |||||||||||||||||||||||||||||||||||||||||
Finance lease obligations | 278 | 56 | 95 | 66 | 61 | Finance lease obligations | 263 | 64 | 103 | 54 | 42 | |||||||||||||||||||||||||||||||||||||||||
Operating lease obligations | 920 | 102 | 164 | 117 | 537 | Operating lease obligations | 859 | 91 | 145 | 121 | 502 | |||||||||||||||||||||||||||||||||||||||||
Content | 5,230 | 1,633 | 1,057 | 1,157 | 1,383 | Content | 5,053 | 1,698 | 1,105 | 1,113 | 1,137 | |||||||||||||||||||||||||||||||||||||||||
Other | 1,414 | 478 | 652 | 218 | 66 | Other | 1,297 | 576 | 567 | 85 | 69 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 31,984 | $ | 3,511 | $ | 5,031 | $ | 5,577 | $ | 17,865 | Total | $ | 33,966 | $ | 3,410 | $ | 4,749 | $ | 4,777 | $ | 21,030 |
Page | |||||
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 2,091 | $ | 1,552 | ||||||||||
Receivables, net | 2,537 | 2,633 | ||||||||||||
Content rights and prepaid license fees, net | 532 | 579 | ||||||||||||
Prepaid expenses and other current assets | 970 | 453 | ||||||||||||
Total current assets | 6,130 | 5,217 | ||||||||||||
Noncurrent content rights, net | 3,439 | 3,129 | ||||||||||||
Property and equipment, net | 1,206 | 951 | ||||||||||||
Goodwill | 13,070 | 13,050 | ||||||||||||
Intangible assets, net | 7,640 | 8,667 | ||||||||||||
Equity method investments | 507 | 568 | ||||||||||||
Other noncurrent assets | 2,095 | 2,153 | ||||||||||||
Total assets | $ | 34,087 | $ | 33,735 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 397 | $ | 463 | ||||||||||
Accrued liabilities | 1,793 | 1,678 | ||||||||||||
Deferred revenues | 557 | 489 | ||||||||||||
Current portion of debt | 335 | 609 | ||||||||||||
Total current liabilities | 3,082 | 3,239 | ||||||||||||
Noncurrent portion of debt | 15,069 | 14,810 | ||||||||||||
Deferred income taxes | 1,534 | 1,691 | ||||||||||||
Other noncurrent liabilities | 2,019 | 2,029 | ||||||||||||
Total liabilities | 21,704 | 21,769 | ||||||||||||
Commitments and contingencies (See Note 22) | 0 | 0 | ||||||||||||
Redeemable noncontrolling interests | 383 | 442 | ||||||||||||
Equity: | ||||||||||||||
Discovery, Inc. stockholders’ equity: | ||||||||||||||
Series A-1 convertible preferred stock: $0.01 par value; 8 shares authorized, issued and outstanding | 0 | 0 | ||||||||||||
Series C-1 convertible preferred stock: $0.01 par value; 6 shares authorized; 5 shares issued and outstanding | 0 | 0 | ||||||||||||
Series A common stock: $0.01 par value; 1,700 shares authorized; 163 and 161 shares issued; and 162 and 158 shares outstanding | 2 | 2 | ||||||||||||
Series B convertible common stock: $0.01 par value; 100 shares authorized; 7 shares issued and outstanding | 0 | 0 | ||||||||||||
Series C common stock: $0.01 par value; 2,000 shares authorized; 547 shares issued; and 318 and 360 shares outstanding | 5 | 5 | ||||||||||||
Additional paid-in capital | 10,809 | 10,747 | ||||||||||||
Treasury stock, at cost: 230 and 190 shares | (8,244) | (7,374) | ||||||||||||
Retained earnings | 8,543 | 7,333 | ||||||||||||
Accumulated other comprehensive loss | (651) | (822) | ||||||||||||
Total Discovery, Inc. stockholders’ equity | 10,464 | 9,891 | ||||||||||||
Noncontrolling interests | 1,536 | 1,633 | ||||||||||||
Total equity | 12,000 | 11,524 | ||||||||||||
Total liabilities and equity | $ | 34,087 | $ | 33,735 | ||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
December 31, | ||||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,552 | $ | 986 | ||||
Receivables, net | 2,633 | 2,620 | ||||||
Content rights, net | 579 | 313 | ||||||
Prepaid expenses and other current assets | 453 | 312 | ||||||
Total current assets | 5,217 | 4,231 | ||||||
Noncurrent content rights, net | 3,129 | 3,069 | ||||||
Property and equipment, net | 951 | 800 | ||||||
Goodwill | 13,050 | 13,006 | ||||||
Intangible assets, net | 8,667 | 9,674 | ||||||
Equity method investments, including note receivable | 568 | 935 | ||||||
Other noncurrent assets | 2,153 | 835 | ||||||
Total assets | $ | 33,735 | $ | 32,550 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 463 | $ | 325 | ||||
Accrued liabilities | 1,678 | 1,604 | ||||||
Deferred revenues | 489 | 249 | ||||||
Current portion of debt | 609 | 1,819 | ||||||
Total current liabilities | 3,239 | 3,997 | ||||||
Noncurrent portion of debt | 14,810 | 14,974 | ||||||
Deferred income taxes | 1,691 | 1,811 | ||||||
Other noncurrent liabilities | 2,029 | 1,251 | ||||||
Total liabilities | 21,769 | 22,033 | ||||||
Commitments and contingencies (See Note 22) | ||||||||
Redeemable noncontrolling interests | 442 | 415 | ||||||
Equity: | ||||||||
Discovery, Inc. stockholders’ equity: | ||||||||
Series A-1 convertible preferred stock: $0.01 par value; 8 shares authorized, issued, and outstanding | — | — | ||||||
Series C-1 convertible preferred stock: $0.01 par value; 6 shares authorized; 5 and 6 shares issued and outstanding | — | — | ||||||
Series A common stock: $0.01 par value; 1,700 shares authorized; 161 and 160 shares issued; and 158 and 157 shares outstanding | 2 | 2 | ||||||
Series B convertible common stock: $0.01 par value; 100 shares authorized; 7 shares issued and outstanding | — | — | ||||||
Series C common stock: $0.01 par value; 2,000 shares authorized; 547 and 524 shares issued; and 360 shares outstanding | 5 | 5 | ||||||
Additional paid-in capital | 10,747 | 10,647 | ||||||
Treasury stock, at cost: 190 and 167 shares | (7,374 | ) | (6,737 | ) | ||||
Retained earnings | 7,333 | 5,254 | ||||||
Accumulated other comprehensive loss | (822 | ) | (785 | ) | ||||
Total Discovery, Inc. stockholders’ equity | 9,891 | 8,386 | ||||||
Noncontrolling interests | 1,633 | 1,716 | ||||||
Total equity | 11,524 | 10,102 | ||||||
Total liabilities and equity | $ | 33,735 | $ | 32,550 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Revenues: | ||||||||||||||||||||
Advertising | $ | 5,583 | $ | 6,044 | $ | 5,514 | ||||||||||||||
Distribution | 4,866 | 4,835 | 4,538 | |||||||||||||||||
Other | 222 | 265 | 501 | |||||||||||||||||
Total revenues | 10,671 | 11,144 | 10,553 | |||||||||||||||||
Costs and expenses: | ||||||||||||||||||||
Costs of revenues, excluding depreciation and amortization | 3,860 | 3,819 | 3,935 | |||||||||||||||||
Selling, general and administrative | 2,722 | 2,788 | 2,620 | |||||||||||||||||
Depreciation and amortization | 1,359 | 1,347 | 1,398 | |||||||||||||||||
Impairment of goodwill and other intangible assets | 124 | 155 | 0 | |||||||||||||||||
Restructuring and other charges | 91 | 26 | 750 | |||||||||||||||||
Gain on disposition | 0 | 0 | (84) | |||||||||||||||||
Total costs and expenses | 8,156 | 8,135 | 8,619 | |||||||||||||||||
Operating income | 2,515 | 3,009 | 1,934 | |||||||||||||||||
Interest expense, net | (648) | (677) | (729) | |||||||||||||||||
Loss on extinguishment of debt | (76) | (28) | 0 | |||||||||||||||||
Loss from equity investees, net | (105) | (2) | (63) | |||||||||||||||||
Other income (expense), net | 42 | (8) | (120) | |||||||||||||||||
Income before income taxes | 1,728 | 2,294 | 1,022 | |||||||||||||||||
Income tax expense | (373) | (81) | (341) | |||||||||||||||||
Net income | 1,355 | 2,213 | 681 | |||||||||||||||||
Net income attributable to noncontrolling interests | (124) | (128) | (67) | |||||||||||||||||
Net income attributable to redeemable noncontrolling interests | (12) | (16) | (20) | |||||||||||||||||
Net income available to Discovery, Inc. | $ | 1,219 | $ | 2,069 | $ | 594 | ||||||||||||||
Net income per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Basic | $ | 1.82 | $ | 2.90 | $ | 0.86 | ||||||||||||||
Diluted | $ | 1.81 | $ | 2.88 | $ | 0.86 | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 505 | 529 | 498 | |||||||||||||||||
Diluted | 672 | 711 | 688 | |||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Revenues: | ||||||||||||
Advertising | $ | 6,044 | $ | 5,514 | $ | 3,073 | ||||||
Distribution | 4,835 | 4,538 | 3,474 | |||||||||
Other | 265 | 501 | 326 | |||||||||
Total revenues | 11,144 | 10,553 | 6,873 | |||||||||
Costs and expenses: | ||||||||||||
Costs of revenues, excluding depreciation and amortization | 3,819 | 3,935 | 2,656 | |||||||||
Selling, general and administrative | 2,788 | 2,620 | 1,768 | |||||||||
Depreciation and amortization | 1,347 | 1,398 | 330 | |||||||||
Impairment of goodwill | 155 | — | 1,327 | |||||||||
Restructuring and other charges | 26 | 750 | 75 | |||||||||
(Gain) loss on disposition | — | (84 | ) | 4 | ||||||||
Total costs and expenses | 8,135 | 8,619 | 6,160 | |||||||||
Operating income | 3,009 | 1,934 | 713 | |||||||||
Interest expense, net | (677 | ) | (729 | ) | (475 | ) | ||||||
Loss on extinguishment of debt | (28 | ) | — | (54 | ) | |||||||
Loss from equity investees, net | (2 | ) | (63 | ) | (211 | ) | ||||||
Other expense, net | (8 | ) | (120 | ) | (110 | ) | ||||||
Income (loss) before income taxes | 2,294 | 1,022 | (137 | ) | ||||||||
Income tax expense | (81 | ) | (341 | ) | (176 | ) | ||||||
Net income (loss) | 2,213 | 681 | (313 | ) | ||||||||
Net income attributable to noncontrolling interests | (128 | ) | (67 | ) | — | |||||||
Net income attributable to redeemable noncontrolling interests | (16 | ) | (20 | ) | (24 | ) | ||||||
Net income (loss) available to Discovery, Inc. | $ | 2,069 | $ | 594 | $ | (337 | ) | |||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||
Basic | $ | 2.90 | $ | 0.86 | $ | (0.59 | ) | |||||
Diluted | $ | 2.88 | $ | 0.86 | $ | (0.59 | ) | |||||
Weighted average shares outstanding: | ||||||||||||
Basic | 529 | 498 | 384 | |||||||||
Diluted | 711 | 688 | 576 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Net income | $ | 1,355 | $ | 2,213 | $ | 681 | ||||||||||||||
Other comprehensive income (loss) adjustments, net of tax: | ||||||||||||||||||||
Currency translation | 292 | (15) | (189) | |||||||||||||||||
Pension plan and SERP | (8) | (10) | 3 | |||||||||||||||||
Derivatives | (113) | 18 | 12 | |||||||||||||||||
Comprehensive income | 1,526 | 2,206 | 507 | |||||||||||||||||
Comprehensive income attributable to noncontrolling interests | (124) | (127) | (67) | |||||||||||||||||
Comprehensive income attributable to redeemable noncontrolling interests | (12) | (17) | (20) | |||||||||||||||||
Comprehensive income attributable to Discovery, Inc. | $ | 1,390 | $ | 2,062 | $ | 420 | ||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net income (loss) | $ | 2,213 | $ | 681 | $ | (313 | ) | |||||
Other comprehensive income (loss) adjustments, net of tax: | ||||||||||||
Currency translation | (15 | ) | (189 | ) | 183 | |||||||
Available-for-sale securities | — | — | 15 | |||||||||
Pension plan and SERP | (10 | ) | 3 | — | ||||||||
Derivatives | 18 | 12 | (20 | ) | ||||||||
Comprehensive income (loss) | 2,206 | 507 | (135 | ) | ||||||||
Comprehensive income attributable to noncontrolling interests | (127 | ) | (67 | ) | — | |||||||
Comprehensive income attributable to redeemable noncontrolling interests | (17 | ) | (20 | ) | (25 | ) | ||||||
Comprehensive income (loss) attributable to Discovery, Inc. | $ | 2,062 | $ | 420 | $ | (160 | ) |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net income | $ | 1,355 | $ | 2,213 | $ | 681 | ||||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||||||
Content rights amortization and impairment | 2,956 | 2,853 | 3,288 | |||||||||||||||||
Depreciation and amortization | 1,359 | 1,347 | 1,398 | |||||||||||||||||
Deferred income taxes | (186) | (504) | (131) | |||||||||||||||||
Equity in losses of equity method investee companies, including cash distributions | 167 | 62 | 138 | |||||||||||||||||
Loss on extinguishment of debt | 76 | 28 | 0 | |||||||||||||||||
Share-based compensation expense | 110 | 142 | 80 | |||||||||||||||||
Impairment of goodwill and other intangible assets | 124 | 155 | 0 | |||||||||||||||||
(Gain) loss from derivative instruments, net | (36) | 48 | (15) | |||||||||||||||||
Realized gain on sale of investments | (103) | (10) | 0 | |||||||||||||||||
Remeasurement gain on previously held equity interests | 0 | (14) | 0 | |||||||||||||||||
Loss (gain) on disposition | 2 | 0 | (84) | |||||||||||||||||
Other, net | 14 | 52 | 141 | |||||||||||||||||
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||||||||||||||||||||
Receivables, net | 105 | (7) | (84) | |||||||||||||||||
Content rights and payables, net | (3,053) | (3,060) | (2,883) | |||||||||||||||||
Accounts payable and accrued liabilities | (131) | 122 | (74) | |||||||||||||||||
Foreign currency, prepaid expenses and other assets, net | (20) | (28) | 121 | |||||||||||||||||
Cash provided by operating activities | 2,739 | 3,399 | 2,576 | |||||||||||||||||
Investing Activities | ||||||||||||||||||||
Purchases of property and equipment | (402) | (289) | (147) | |||||||||||||||||
Purchases of investments | (250) | 0 | 0 | |||||||||||||||||
Investments in and advances to equity investments | (181) | (254) | (61) | |||||||||||||||||
Proceeds from dissolution of joint venture and sale of investments | 69 | 125 | 0 | |||||||||||||||||
Business acquisitions, net of cash acquired | (39) | (73) | (8,565) | |||||||||||||||||
Proceeds from dispositions, net of cash disposed | 0 | 0 | 107 | |||||||||||||||||
Other investing activities, net | 100 | 53 | 73 | |||||||||||||||||
Cash used in investing activities | (703) | (438) | (8,593) | |||||||||||||||||
Financing Activities | ||||||||||||||||||||
Principal repayments of debt, including discount payment | (2,193) | (2,658) | (16) | |||||||||||||||||
Borrowings from debt, net of discount and issuance costs | 1,979 | 1,479 | 0 | |||||||||||||||||
Repurchases of stock | (969) | (633) | 0 | |||||||||||||||||
Principal repayments of revolving credit facility | (500) | (225) | (200) | |||||||||||||||||
Borrowings under revolving credit facility | 500 | 0 | 0 | |||||||||||||||||
Distributions to noncontrolling interests and redeemable noncontrolling interests | (254) | (250) | (76) | |||||||||||||||||
Borrowings under term loan facilities | 0 | 0 | 2,000 | |||||||||||||||||
Principal repayments of term loans | 0 | 0 | (2,000) | |||||||||||||||||
Other financing activities, net | (112) | (70) | 9 | |||||||||||||||||
Cash used in financing activities | (1,549) | (2,357) | (283) | |||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 83 | (38) | (23) | |||||||||||||||||
Net change in cash, cash equivalents, and restricted cash | 570 | 566 | (6,323) | |||||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 1,552 | 986 | 7,309 | |||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 2,122 | $ | 1,552 | $ | 986 | ||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Operating Activities | ||||||||||||
Net income (loss) | $ | 2,213 | $ | 681 | $ | (313 | ) | |||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||||||||||
Content rights amortization and impairment | 2,853 | 3,288 | 1,910 | |||||||||
Depreciation and amortization | 1,347 | 1,398 | 330 | |||||||||
Deferred income taxes | (504 | ) | (131 | ) | (199 | ) | ||||||
Impairment of goodwill | 155 | — | 1,327 | |||||||||
Share-based compensation expense | 142 | 80 | 39 | |||||||||
Equity in losses of equity method investee companies, net of cash distributions | 62 | 138 | 223 | |||||||||
Unrealized loss (gain) from derivative instruments, net | 62 | (15 | ) | — | ||||||||
Loss on extinguishment of debt | 28 | — | 54 | |||||||||
Remeasurement gain on previously held equity interests | (14 | ) | — | (34 | ) | |||||||
Realized (gain) loss from derivative instruments, net | (14 | ) | — | 98 | ||||||||
(Gain) loss on disposition | — | (84 | ) | 4 | ||||||||
Other, net | 42 | 141 | 85 | |||||||||
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||||||||||||
Receivables, net | (7 | ) | (84 | ) | (258 | ) | ||||||
Content rights and payables, net | (3,060 | ) | (2,883 | ) | (1,947 | ) | ||||||
Accounts payable and accrued liabilities | 122 | (74 | ) | 265 | ||||||||
Prepaid income taxes and income taxes receivable | 4 | 57 | 20 | |||||||||
Foreign currency and other, net | (32 | ) | 64 | 25 | ||||||||
Cash provided by operating activities | 3,399 | 2,576 | 1,629 | |||||||||
Investing Activities | ||||||||||||
Business acquisitions, net of cash acquired | (73 | ) | (8,565 | ) | (60 | ) | ||||||
Investments in and advances to equity investments | (254 | ) | (61 | ) | (444 | ) | ||||||
Purchases of property and equipment | (289 | ) | (147 | ) | (135 | ) | ||||||
Proceeds from dissolution of joint venture and sale of investments | 125 | — | — | |||||||||
Proceeds from (payments for) derivative instruments, net | 54 | (2 | ) | (101 | ) | |||||||
Proceeds from sale of assets | 4 | 68 | — | |||||||||
Proceeds from dispositions, net of cash disposed | — | 107 | 29 | |||||||||
Distributions from equity method investees | — | 1 | 77 | |||||||||
Other investing activities, net | (5 | ) | 6 | 1 | ||||||||
Cash used in investing activities | (438 | ) | (8,593 | ) | (633 | ) | ||||||
Financing Activities | ||||||||||||
Principal repayments of debt, including discount payment and premiums to par value | (2,658 | ) | (16 | ) | (650 | ) | ||||||
Borrowings from debt, net of discount and including premiums | 1,479 | — | 7,488 | |||||||||
Borrowings under term loan facilities | — | 2,000 | — | |||||||||
Principal repayments of term loans | — | (2,000 | ) | — | ||||||||
Repurchases of stock | (633 | ) | — | (603 | ) | |||||||
Distributions to noncontrolling interests and redeemable noncontrolling interests | (250 | ) | (76 | ) | (30 | ) | ||||||
Principal repayments of revolving credit facility | (225 | ) | (200 | ) | (475 | ) | ||||||
Principal repayments of finance lease obligations | (44 | ) | (50 | ) | (33 | ) | ||||||
Hedge of borrowings from debt instruments | (18 | ) | — | — | ||||||||
(Repayments) borrowings under program financing line of credit, net | (12 | ) | 22 | — | ||||||||
Share-based plan (payments) proceeds, net | (2 | ) | 54 | 16 | ||||||||
Commercial paper repayments, net | — | (5 | ) | (48 | ) | |||||||
Borrowings under revolving credit facility | — | — | 350 | |||||||||
Other financing activities, net | 6 | (12 | ) | (64 | ) | |||||||
Cash (used in) provided by financing activities | (2,357 | ) | (283 | ) | 5,951 | |||||||
Effect of exchange rate changes on cash and cash equivalents | (38 | ) | (23 | ) | 62 | |||||||
Net change in cash and cash equivalents | 566 | (6,323 | ) | 7,009 | ||||||||
Cash and cash equivalents, beginning of period | 986 | 7,309 | 300 | |||||||||
Cash and cash equivalents, end of period | $ | 1,552 | $ | 986 | $ | 7,309 |
Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Discovery, Inc. Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Shares | Par Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | 14 | $ | 0 | 547 | $ | 5 | $ | 7,295 | $ | (6,737) | $ | 4,632 | $ | (585) | $ | 4,610 | $ | 0 | $ | 4,610 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | — | — | — | 33 | (26) | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to Discovery, Inc. and attributable to noncontrolling interests | — | — | — | — | — | — | 594 | — | 594 | 67 | 661 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | (174) | (174) | — | (174) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 82 | — | — | — | 82 | — | 82 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax settlements associated with share-based plans | — | — | — | — | (18) | — | — | — | (18) | — | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock and noncontrolling interest in connection with the acquisition of Scripps Networks Interactive, Inc. ("Scripps Networks") | — | — | 139 | 1 | 3,217 | — | — | — | 3,218 | 1,700 | 4,918 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | — | — | — | — | (51) | (51) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustments to redemption value | — | — | — | — | — | — | (5) | — | (5) | — | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock in connection with share-based plans | — | — | 5 | 1 | 71 | — | — | — | 72 | — | 72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | 14 | 0 | 691 | 7 | 10,647 | (6,737) | 5,254 | (785) | 8,386 | 1,716 | 10,102 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | — | — | — | 34 | (30) | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to Discovery, Inc. and attributable to noncontrolling interests | — | — | — | — | — | — | 2,069 | — | 2,069 | 128 | 2,197 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | (7) | (7) | — | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversion | (1) | — | 22 | — | — | — | — | — | — | — | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 73 | — | — | — | 73 | — | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of stock | 0 | — | — | — | — | (637) | — | — | (637) | — | (637) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of common stock repurchase contract | — | — | — | — | 5 | — | — | — | 5 | — | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax settlements associated with share-based plans | — | — | — | — | (22) | — | — | — | (22) | — | (22) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | — | — | — | — | (211) | (211) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock in connection with share-based plans | — | — | 2 | 0 | 44 | — | — | — | 44 | — | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustments to redemption value | — | — | — | — | — | — | (24) | — | (24) | — | (24) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | 13 | 0 | 715 | 7 | 10,747 | (7,374) | 7,333 | (822) | 9,891 | 1,633 | 11,524 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of an accounting change (See Note 2) | — | — | — | — | — | — | 2 | 0 | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes of an equity method investee | — | — | — | — | — | — | (3) | — | (3) | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to Discovery, Inc. and attributable to noncontrolling interests | — | — | — | — | — | — | 1,219 | — | 1,219 | 124 | 1,343 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | 171 | 171 | — | 171 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 94 | — | — | — | 94 | — | 94 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of stock | 0 | — | — | — | — | (965) | — | — | (965) | — | (965) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity exchange with Harpo for step acquisition of OWN (See Note 11) | — | — | — | — | (45) | 95 | 9 | — | 59 | — | 59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax settlements associated with share-based plans | — | — | — | — | (32) | — | — | — | (32) | — | (32) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | — | — | — | — | (223) | (223) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock in connection with share-based plans | — | — | 2 | 0 | 43 | — | — | — | 43 | — | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustments to redemption value | — | — | — | — | — | — | (17) | — | (17) | — | (17) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other adjustments to stockholders' equity | — | — | — | — | 2 | — | — | — | 2 | 2 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | 13 | $ | 0 | 717 | $ | 7 | $ | 10,809 | $ | (8,244) | $ | 8,543 | $ | (651) | $ | 10,464 | $ | 1,536 | $ | 12,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Discovery, Inc. Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||
Shares | Par Value | Shares | Par Value | |||||||||||||||||||||||||||||||||||||||
December 31, 2016 | 99 | $ | 2 | 543 | $ | 5 | $ | 7,046 | $ | (6,356 | ) | $ | 5,232 | $ | (762 | ) | $ | 5,167 | $ | — | $ | 5,167 | ||||||||||||||||||||
Net loss available to Discovery, Inc. and attributable to noncontrolling interests | — | — | — | — | — | — | (337 | ) | — | (337 | ) | — | (337 | ) | ||||||||||||||||||||||||||||
Cumulative effect of accounting change - share-based payments | — | — | — | — | 4 | — | (4 | ) | — | — | — | — | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | 177 | 177 | — | 177 | |||||||||||||||||||||||||||||||
Preferred stock modification | (82 | ) | (2 | ) | — | — | 37 | — | — | — | 35 | — | 35 | |||||||||||||||||||||||||||||
Repurchases of stock | (3 | ) | — | — | — | — | (381 | ) | (222 | ) | — | (603 | ) | — | (603 | ) | ||||||||||||||||||||||||||
Excess of fair value received over book value of equity contributed to redeemable noncontrolling interest | — | — | — | — | 57 | — | — | — | 57 | — | 57 | |||||||||||||||||||||||||||||||
Cash settlement of common stock repurchase contracts | — | — | — | — | 58 | — | — | — | 58 | — | 58 | |||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 44 | — | — | — | 44 | — | 44 | |||||||||||||||||||||||||||||||
Tax settlements associated with equity based compensation | — | — | (1 | ) | — | (30 | ) | — | — | — | (30 | ) | — | (30 | ) | |||||||||||||||||||||||||||
Issuance of stock in connection with share-based plans | — | — | 5 | — | 79 | — | 1 | — | 80 | — | 80 | |||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment of redemption value | — | — | — | — | — | — | (38 | ) | — | (38 | ) | — | (38 | ) | ||||||||||||||||||||||||||||
December 31, 2017 | 14 | — | 547 | 5 | 7,295 | (6,737 | ) | 4,632 | (585 | ) | 4,610 | — | 4,610 | |||||||||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | — | — | — | 33 | (26 | ) | 7 | — | 7 | ||||||||||||||||||||||||||||||
Net income available to Discovery, Inc. and attributable to noncontrolling interests | — | — | — | — | — | — | 594 | — | 594 | 67 | 661 | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | (174 | ) | (174 | ) | — | (174 | ) | ||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 82 | — | — | — | 82 | — | 82 | |||||||||||||||||||||||||||||||
Tax settlements associated with equity based compensation | — | — | — | — | (18 | ) | — | — | — | (18 | ) | — | (18 | ) | ||||||||||||||||||||||||||||
Issuance of stock and noncontrolling interest in connection with the acquisition of Scripps Networks Interactive, Inc. ("Scripps Networks") | — | — | 139 | �� | 1 | 3,217 | — | — | — | 3,218 | 1,700 | 4,918 | ||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | — | — | — | — | (51 | ) | (51 | ) | |||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustments to redemption value | — | — | — | — | — | — | (5 | ) | — | (5 | ) | — | (5 | ) | ||||||||||||||||||||||||||||
Issuance of stock in connection with share-based plans | — | — | 5 | 1 | 71 | — | — | — | 72 | — | 72 | |||||||||||||||||||||||||||||||
December 31, 2018 | 14 | — | 691 | 7 | 10,647 | (6,737 | ) | 5,254 | (785 | ) | 8,386 | 1,716 | 10,102 | |||||||||||||||||||||||||||||
Cumulative effect of accounting changes (See Note 2) | — | — | — | — | — | — | 34 | (30 | ) | 4 | — | 4 | ||||||||||||||||||||||||||||||
Net income available to Discovery, Inc. and attributable to noncontrolling interests | — | — | — | — | — | — | 2,069 | — | 2,069 | 128 | 2,197 | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | (7 | ) | (7 | ) | — | (7 | ) | ||||||||||||||||||||||||||||
Preferred stock conversion | (1 | ) | — | 22 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 73 | — | — | — | 73 | — | 73 | |||||||||||||||||||||||||||||||
Repurchases of stock | — | — | — | — | — | (637 | ) | — | — | (637 | ) | — | (637 | ) | ||||||||||||||||||||||||||||
Settlement of common stock repurchase contract | — | — | — | — | 5 | — | — | — | 5 | — | 5 | |||||||||||||||||||||||||||||||
Tax settlements associated with share-based plans | — | — | — | — | (22 | ) | — | — | — | (22 | ) | — | (22 | ) | ||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | — | — | — | — | (211 | ) | (211 | ) | |||||||||||||||||||||||||||||
Issuance of stock in connection with share-based plans | — | — | 2 | — | 44 | — | — | — | 44 | — | 44 | |||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustments to redemption value | — | — | — | — | — | — | (24 | ) | — | (24 | ) | — | (24 | ) | ||||||||||||||||||||||||||||
December 31, 2019 | 13 | $ | — | 715 | $ | 7 | $ | 10,747 | $ | (7,374 | ) | $ | 7,333 | $ | (822 | ) | $ | 9,891 | $ | 1,633 | $ | 11,524 |
Cash | $ | 17 | ||
Content rights | 18 | |||
Intangible assets | 34 | |||
Goodwill | 121 | |||
Accrued liabilities | (12 | ) | ||
Total assets acquired and liabilities assumed in Lifestyle Business | 178 | |||
Note receivable from BBC | 130 | |||
Cash received | 88 | |||
Net assets received in dissolution of UKTV joint venture | $ | 396 |
Cash | $ | 17 | ||||||
Content rights | 18 | |||||||
Intangible assets | 34 | |||||||
Goodwill | 121 | |||||||
Accrued liabilities | (12) | |||||||
Total assets acquired and liabilities assumed in Lifestyle Business | 178 | |||||||
Note receivable from BBC | 130 | |||||||
Cash received | 88 | |||||||
Net assets received in dissolution of UKTV joint venture | $ | 396 | ||||||
Carrying value of UKTV equity method investment | $ | 278 | ||
Settlement of note receivable | 118 | |||
Total assets derecognized in dissolution of UKTV joint venture | $ | 396 |
Carrying value of UKTV equity method investment | $ | 278 | ||||||
Settlement of note receivable | 118 | |||||||
Total assets derecognized in dissolution of UKTV joint venture | $ | 396 | ||||||
Scripps Networks equity | ||||
Scripps Networks shares outstanding | 131 | |||
Cash consideration per Scripps Networks share | $ | 65.82 | ||
Cash portion of consideration | $ | 8,590 | ||
Scripps Networks shares outstanding | 131 | |||
Share conversion ratio per Scripps Networks share | 1.0584 | |||
Discovery Series C common stock | 138 | |||
Discovery Series C common stock price per share | $ | 23.01 | ||
Equity portion of consideration | $ | 3,179 | ||
Shares awarded under Scripps Networks share-based compensation programs | 3 | |||
Scripps Networks share-based compensation awards converting to cash | 2 | |||
Average cash consideration per share awarded less applicable exercise price | $ | 46.90 | ||
Cash portion of consideration | $ | 88 | ||
Scripps Networks share-based compensation awards | 1 | |||
Share-based compensation conversion ratio (based on intrinsic value per award) | 3 | |||
Discovery Series C common stock issued (1) or share-based compensation converted (2) | 3 | |||
Average equity value (intrinsic value of Discovery Series C common stock or options to be issued) | $ | 15.19 | ||
Share-based compensation equity value | $ | 51 | ||
Less: post-combination compensation expense | (12 | ) | ||
Equity portion of consideration | 39 | |||
Scripps Networks transaction costs paid by Discovery | 117 | |||
Total consideration paid | $ | 12,013 |
Scripps Networks equity | ||||||||
Scripps Networks shares outstanding | 131 | |||||||
Cash consideration per Scripps Networks share | $ | 65.82 | ||||||
Cash portion of consideration | $ | 8,590 | ||||||
Scripps Networks shares outstanding | 131 | |||||||
Share conversion ratio per Scripps Networks share | 1.0584 | |||||||
Discovery Series C common stock | 138 | |||||||
Discovery Series C common stock price per share | $ | 23.01 | ||||||
Equity portion of consideration | $ | 3,179 | ||||||
Shares awarded under Scripps Networks share-based compensation programs | 3 | |||||||
Scripps Networks share-based compensation awards converting to cash | 2 | |||||||
Average cash consideration per share awarded less applicable exercise price | $ | 46.90 | ||||||
Cash portion of consideration | $ | 88 | ||||||
Scripps Networks share-based compensation awards | 1 | |||||||
Share-based compensation conversion ratio (based on intrinsic value per award) | 3 | |||||||
Discovery Series C common stock issued (1) or share-based compensation converted (2) | 3 | |||||||
Average equity value (intrinsic value of Discovery Series C common stock or options to be issued) | $ | 15.19 | ||||||
Share-based compensation equity value | $ | 51 | ||||||
Less: post-combination compensation expense | (12) | |||||||
Equity portion of consideration | 39 | |||||||
Scripps Networks transaction costs paid by Discovery | 117 | |||||||
Total consideration paid | $ | 12,013 |
Preliminary | Measurement Period Adjustments | Final | ||||||||||
Accounts receivable | $ | 783 | $ | — | $ | 783 | ||||||
Other current assets | 421 | (9 | ) | 412 | ||||||||
Content rights | 1,088 | (14 | ) | 1,074 | ||||||||
Property and equipment | 315 | — | 315 | |||||||||
Goodwill | 6,003 | 154 | 6,157 | |||||||||
Intangible assets | 9,175 | — | 9,175 | |||||||||
Equity method investments, including note receivable | 870 | (157 | ) | 713 | ||||||||
Other noncurrent assets | 111 | 4 | 115 | |||||||||
Current liabilities assumed | (494 | ) | (105 | ) | (599 | ) | ||||||
Debt assumed | (2,481 | ) | — | (2,481 | ) | |||||||
Deferred income taxes | (1,695 | ) | 123 | (1,572 | ) | |||||||
Other noncurrent liabilities | (383 | ) | 4 | (379 | ) | |||||||
Noncontrolling interests | (1,700 | ) | — | (1,700 | ) | |||||||
Total consideration paid | $ | 12,013 | $ | — | $ | 12,013 |
Preliminary | Measurement Period Adjustments | Final | ||||||||||||||||||
Accounts receivable | $ | 783 | $ | 0 | $ | 783 | ||||||||||||||
Other current assets | 421 | (9) | 412 | |||||||||||||||||
Content rights | 1,088 | (14) | 1,074 | |||||||||||||||||
Property and equipment | 315 | 0 | 315 | |||||||||||||||||
Goodwill | 6,003 | 154 | 6,157 | |||||||||||||||||
Intangible assets | 9,175 | 0 | 9,175 | |||||||||||||||||
Equity method investments, including note receivable | 870 | (157) | 713 | |||||||||||||||||
Other noncurrent assets | 111 | 4 | 115 | |||||||||||||||||
Current liabilities assumed | (494) | (105) | (599) | |||||||||||||||||
Debt assumed | (2,481) | 0 | (2,481) | |||||||||||||||||
Deferred income taxes | (1,695) | 123 | (1,572) | |||||||||||||||||
Other noncurrent liabilities | (383) | 4 | (379) | |||||||||||||||||
Noncontrolling interests | (1,700) | 0 | (1,700) | |||||||||||||||||
Total consideration paid | $ | 12,013 | $ | 0 | $ | 12,013 |
Fair Value | Weighted Average Useful Life in Years | |||||||||||||
Trademarks and trade names | $ | 1,225 | 10 | |||||||||||
Advertiser relationships | 4,995 | 10 | ||||||||||||
Advertising backlog | 280 | 1 | ||||||||||||
Affiliate relationships | 2,455 | 12 | ||||||||||||
Broadcast licenses | 220 | 6 | ||||||||||||
Total intangible assets acquired | $ | 9,175 |
Intangible assets | $ | 295 | ||
Content rights | 176 | |||
Accounts receivable | 84 | |||
Other assets | 26 | |||
Other liabilities | (218 | ) | ||
Net assets acquired | $ | 363 | ||
Goodwill | 124 | |||
Remeasurement gain on previously held equity interest | (33 | ) | ||
Carrying value of previously held equity interest | (329 | ) | ||
Redeemable noncontrolling interest (Note 11) | (55 | ) | ||
Cash consideration transferred | $ | 70 |
Goodwill | $ | 75 | ||
Intangible assets | 53 | |||
Property plant and equipment, net | 17 | |||
Other assets acquired | 6 | |||
Liabilities assumed | (7 | ) | ||
Net assets acquired | $ | 144 |
Year Ended December 31, | ||||||||
2018 | 2017 | |||||||
Revenues | $ | 11,176 | $ | 10,790 | ||||
Net income (loss) available to Discovery, Inc. | 823 | (329 | ) | |||||
Net income (loss) per share - basic | 1.15 | (0.46 | ) | |||||
Net income (loss) per share - diluted | 1.15 | (0.47 | ) |
Year Ended December 31, 2018 | ||||||||
Revenues | $ | 11,176 | ||||||
Net income available to Discovery, Inc. | 823 | |||||||
Net income per share - basic | 1.15 | |||||||
Net income per share - diluted | 1.15 |
Year ended December 31, 2018 | ||||||||
Revenues: | ||||||||
Advertising | $ | 2,163 | ||||||
Distribution | 795 | |||||||
Other | 90 | |||||||
Total revenues | $ | 3,048 | ||||||
Net income available to Discovery, Inc. | $ | 204 |
Year Ended December 31, 2018 | ||||
Revenues: | ||||
Advertising | $ | 2,163 | ||
Distribution | 795 | |||
Other | 90 | |||
Total revenues | $ | 3,048 | ||
Net income (loss) available to Discovery, Inc. | $ | 204 |
Category | Balance Sheet Location | Ownership | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Equity method investments: | ||||||||||||||||||||||||||
nC+ | Equity method investments | 32% | $ | 164 | $ | 182 | ||||||||||||||||||||
Discovery Solar Ventures, LLC (a) | Equity method investments | N/A | 83 | 92 | ||||||||||||||||||||||
All3Media | Equity method investments | 50% | 76 | 75 | ||||||||||||||||||||||
Other | Equity method investments | 184 | 219 | |||||||||||||||||||||||
Total equity method investments | 507 | 568 | ||||||||||||||||||||||||
Investments with readily determinable fair values | Prepaid expenses and other current assets | 32 | 0 | |||||||||||||||||||||||
Investments with readily determinable fair values | Other noncurrent assets | 54 | 51 | |||||||||||||||||||||||
Equity investments without readily determinable fair values: | ||||||||||||||||||||||||||
Group Nine Media (b) | Other noncurrent assets | 25% | 276 | 256 | ||||||||||||||||||||||
Formula E (c) | Other noncurrent assets | 25% | 65 | 65 | ||||||||||||||||||||||
Other | Other noncurrent assets | 200 | 193 | |||||||||||||||||||||||
Total equity investments without readily determinable fair values | 541 | 514 | ||||||||||||||||||||||||
Total equity investments | $ | 1,134 | $ | 1,133 | ||||||||||||||||||||||
(a) Discovery Solar Ventures, LLC invests in limited liability companies that sponsor renewable energy projects related to solar energy. These investments are considered VIEs of the Company and are accounted for under the equity method of accounting using the HLBV methodology for allocating earnings. | ||||||||||||||||||||||||||
(b) Overall ownership percentage for Group Nine Media is calculated on an outstanding shares basis. The amount shown herein includes a $20 million note receivable balance presented within Prepaid expenses and other current assets on the Company's consolidated balance sheets. | ||||||||||||||||||||||||||
(c) Ownership percentage for Formula E includes holdings accounted for as an equity method investment and holdings accounted for as an equity investment without a readily determinable fair value. |
December 31, | ||||||||||
Category | Balance Sheet Location | 2019 | 2018 | |||||||
Equity method investments: | ||||||||||
Equity investments | Equity method investments | $ | 568 | $ | 841 | |||||
Note receivable | Equity method investments | — | 94 | |||||||
Equity investments: | ||||||||||
Common stock investments with readily determinable fair values | Other noncurrent assets | 51 | 77 | |||||||
Equity investments without readily determinable fair value | Other noncurrent assets | 514 | 379 | |||||||
Total investments | $ | 1,133 | $ | 1,391 |
Consolidated Statements of Operations Classification | Year Ended December 31, | ||||||||||||
Renewable Energy Investments | 2019 | 2018 | 2017 | ||||||||||
Income (loss) on renewable energy investments | Loss from equity investees, net | $ | 13 | $ | (11 | ) | $ | (251 | ) | ||||
Tax impact: | |||||||||||||
Equity passive (income) loss | Income tax expense | $ | (3 | ) | $ | 2 | $ | 83 | |||||
Investment tax credits | Income tax expense | — | 12 | 211 | |||||||||
Total tax (expense) benefit | $ | (3 | ) | $ | 14 | $ | 294 |
Year Ended December 31, | ||||||||||||
Selected Statement of Operations Information: | 2019 | 2018 | 2017 | |||||||||
Revenues | $ | 3,013 | $ | 3,140 | $ | 1,780 | ||||||
Cost of sales | 2,026 | 1,973 | 1,100 | |||||||||
Operating income | 987 | 847 | 76 | |||||||||
Pre-tax income from continuing operations before extraordinary items | 56 | 180 | 16 | |||||||||
After-tax net income (loss) | 4 | 96 | (27 | ) | ||||||||
Net income (loss) attributable to the entity | 4 | 96 | (27 | ) | ||||||||
December 31, | ||||||||||||
Selected Balance Sheet Information: | 2019 | 2018 | ||||||||||
Current assets | $ | 1,675 | $ | 1,855 | ||||||||
Noncurrent assets | 2,563 | 2,465 | ||||||||||
Current liabilities | 1,159 | 1,398 | ||||||||||
Noncurrent liabilities | 1,414 | 1,334 | ||||||||||
Equity | 1,665 | 1,588 |
Year Ended December 31, | ||||||||
2019 | 2018 | |||||||
Net losses recognized during the period on equity securities | $ | (26 | ) | $ | (88 | ) | ||
Less: Net losses recognized on equity securities sold | — | — | ||||||
Unrealized losses recognized during reporting period on equity securities still held at the reporting date | $ | (26 | ) | $ | (88 | ) |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Net gains (losses) recognized during the period on equity securities | $ | 129 | $ | (26) | $ | (88) | ||||||||||||||
Less: Net gains recognized on equity securities sold | 101 | 0 | 0 | |||||||||||||||||
Unrealized gains (losses) recognized during reporting period on equity securities still held at the reporting date | $ | 28 | $ | (26) | $ | (88) |
Level 1 | – | Quoted prices for identical instruments in active markets. | ||||||
Level 2 | – | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | ||||||
Level 3 | – | Valuations derived from techniques in which one or more significant inputs are unobservable. |
December 31, 2019 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Category | Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | Category | Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents: | Cash equivalents: | |||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | Cash and cash equivalents | $ | — | $ | 10 | $ | — | $ | 10 | Time deposits | Cash and cash equivalents | $ | 0 | $ | 7 | $ | 0 | $ | 7 | |||||||||||||||||||||||||||||||
Treasury securities | Treasury securities | Cash and cash equivalents | 500 | 0 | 0 | 500 | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities: | Equity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | Cash and cash equivalents | 300 | — | — | 300 | Money market funds | Cash and cash equivalents | 0 | 150 | 0 | 150 | |||||||||||||||||||||||||||||||||||||||
Time deposits | Time deposits | Prepaid expenses and other current assets | 0 | 250 | 0 | 250 | ||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | Prepaid expenses and other current assets | 11 | — | — | 11 | Mutual funds | Prepaid expenses and other current assets | 14 | 0 | 0 | 14 | |||||||||||||||||||||||||||||||||||||||
Company-owned life insurance contracts | Prepaid expenses and other current assets | — | 4 | — | 4 | Company-owned life insurance contracts | Prepaid expenses and other current assets | 0 | 4 | 0 | 4 | |||||||||||||||||||||||||||||||||||||||
Mutual funds | Other noncurrent assets | 192 | — | — | 192 | Mutual funds | Other noncurrent assets | 200 | 0 | 0 | 200 | |||||||||||||||||||||||||||||||||||||||
Company-owned life insurance contracts | Other noncurrent assets | — | 45 | — | 45 | Company-owned life insurance contracts | Other noncurrent assets | 0 | 48 | 0 | 48 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 503 | $ | 59 | $ | — | $ | 562 | Total | $ | 714 | $ | 459 | $ | 0 | $ | 1,173 | |||||||||||||||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation plan | Accrued liabilities | $ | 24 | $ | — | $ | — | $ | 24 | Deferred compensation plan | Accrued liabilities | $ | 28 | $ | 0 | $ | 0 | $ | 28 | |||||||||||||||||||||||||||||||
Deferred compensation plan | Other noncurrent liabilities | 209 | — | — | 209 | Deferred compensation plan | Other noncurrent liabilities | 220 | 0 | 0 | 220 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 233 | $ | — | $ | — | $ | 233 | Total | $ | 248 | $ | 0 | $ | 0 | $ | 248 |
December 31, 2019 | ||||||||||||||||||||||||||||||||
Category | Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||||||||
Time deposits | Cash and cash equivalents | $ | 0 | $ | 10 | $ | 0 | $ | 10 | |||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Mutual funds | Prepaid expenses and other current assets | 11 | 0 | 0 | 11 | |||||||||||||||||||||||||||
Company-owned life insurance contracts | Prepaid expenses and other current assets | 0 | 4 | 0 | 4 | |||||||||||||||||||||||||||
Mutual funds | Other noncurrent assets | 192 | 0 | 0 | 192 | |||||||||||||||||||||||||||
Company-owned life insurance contracts | Other noncurrent assets | 0 | 45 | 0 | 45 | |||||||||||||||||||||||||||
Total | $ | 203 | $ | 59 | $ | 0 | $ | 262 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Deferred compensation plan | Accrued liabilities | $ | 24 | $ | 0 | $ | 0 | $ | 24 | |||||||||||||||||||||||
Deferred compensation plan | Other noncurrent liabilities | 209 | 0 | 0 | 209 | |||||||||||||||||||||||||||
Total | $ | 233 | $ | 0 | $ | 0 | $ | 233 |
December 31, 2018 | ||||||||||||||||||
Category | Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||||
Equity securities: | ||||||||||||||||||
Money market funds | Cash and cash equivalents | $ | 286 | $ | — | $ | — | $ | 286 | |||||||||
Mutual funds | Prepaid expenses and other current assets | 13 | — | — | 13 | |||||||||||||
Company-owned life insurance contracts | Prepaid expenses and other current assets | — | 15 | — | 15 | |||||||||||||
Mutual funds | Other noncurrent assets | 158 | — | — | 158 | |||||||||||||
Company-owned life insurance contracts | Other noncurrent assets | — | 30 | — | 30 | |||||||||||||
Total | $ | 457 | $ | 45 | $ | — | $ | 502 | ||||||||||
Liabilities | ||||||||||||||||||
Deferred compensation plan | Accrued liabilities | $ | 37 | $ | — | $ | — | $ | 37 | |||||||||
Deferred compensation plan | Other noncurrent liabilities | 178 | — | — | 178 | |||||||||||||
Total | $ | 215 | $ | — | $ | — | $ | 215 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Produced content rights: | ||||||||||||||
Completed | $ | 8,576 | $ | 6,976 | ||||||||||
In-production | 731 | 582 | ||||||||||||
Coproduced content rights: | ||||||||||||||
Completed | 888 | 882 | ||||||||||||
In-production | 78 | 50 | ||||||||||||
Licensed content rights: | ||||||||||||||
Acquired | 1,312 | 1,101 | ||||||||||||
Prepaid | 556 | 249 | ||||||||||||
Content rights, at cost | 12,141 | 9,840 | ||||||||||||
Accumulated amortization | (8,170) | (6,132) | ||||||||||||
Total content rights, net | 3,971 | 3,708 | ||||||||||||
Current portion | (532) | (579) | ||||||||||||
Noncurrent portion | $ | 3,439 | $ | 3,129 |
December 31, | ||||||||
2019 | 2018 | |||||||
Produced content rights: | ||||||||
Completed | $ | 6,976 | $ | 5,609 | ||||
In-production | 582 | 612 | ||||||
Coproduced content rights: | ||||||||
Completed | 882 | 682 | ||||||
In-production | 50 | 53 | ||||||
Licensed content rights: | ||||||||
Acquired | 1,101 | 1,007 | ||||||
Prepaid (a) | 249 | 154 | ||||||
Content rights, at cost | 9,840 | 8,117 | ||||||
Accumulated amortization | (6,132 | ) | (4,735 | ) | ||||
Total content rights, net | 3,708 | 3,382 | ||||||
Current portion | (579 | ) | (313 | ) | ||||
Noncurrent portion | $ | 3,129 | $ | 3,069 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Content amortization | $ | 2,908 | $ | 2,786 | $ | 2,858 | ||||||||||||||
Other production charges | 334 | 412 | 471 | |||||||||||||||||
Content impairments | 48 | 67 | 430 | |||||||||||||||||
Total content expense | $ | 3,290 | $ | 3,265 | $ | 3,759 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Content amortization | $ | 2,786 | $ | 2,858 | $ | 1,878 | ||||||
Other production charges | 412 | 471 | 310 | |||||||||
Content impairments | 67 | 430 | 32 | |||||||||
Total content expense | $ | 3,265 | $ | 3,759 | $ | 2,220 |
U.S. Networks | International Networks | Total | ||||||||||||||||||||||||||||||||||||||||
U.S. Networks | International Networks | Other | Total | |||||||||||||||||||||||||||||||||||||||
December 31, 2017 | $ | 5,478 | $ | 1,555 | $ | 40 | $ | 7,073 | ||||||||||||||||||||||||||||||||||
Acquisitions (Note 3) | 5,319 | 802 | — | 6,121 | ||||||||||||||||||||||||||||||||||||||
Dispositions (Note 3) | — | — | (40 | ) | (40 | ) | ||||||||||||||||||||||||||||||||||||
Foreign currency translation and other adjustments | (12 | ) | (136 | ) | — | (148 | ) | |||||||||||||||||||||||||||||||||||
December 31, 2018 | $ | 10,785 | $ | 2,221 | $ | — | $ | 13,006 | December 31, 2018 | $ | 10,785 | $ | 2,221 | $ | 13,006 | |||||||||||||||||||||||||||
Acquisitions (Note 3) | 3 | 191 | — | 194 | Acquisitions (Note 3) | 3 | 191 | 194 | ||||||||||||||||||||||||||||||||||
Impairment of goodwill | — | (155 | ) | — | (155 | ) | Impairment of goodwill | 0 | (155) | (155) | ||||||||||||||||||||||||||||||||
Foreign currency translation and other adjustments | 25 | (20 | ) | — | 5 | Foreign currency translation and other adjustments | 25 | (20) | 5 | |||||||||||||||||||||||||||||||||
December 31, 2019 | $ | 10,813 | $ | 2,237 | $ | — | $ | 13,050 | December 31, 2019 | $ | 10,813 | $ | 2,237 | $ | 13,050 | |||||||||||||||||||||||||||
Acquisitions (Note 3) | Acquisitions (Note 3) | 0 | 25 | 25 | ||||||||||||||||||||||||||||||||||||||
Impairment of goodwill | Impairment of goodwill | 0 | (121) | (121) | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation and other adjustments | Foreign currency translation and other adjustments | 0 | 116 | 116 | ||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | $ | 10,813 | $ | 2,257 | $ | 13,070 |
Weighted Average Amortization Period (Years) | December 31, 2019 | December 31, 2018 | Weighted Average Amortization Period (Years) | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets subject to amortization: | Intangible assets subject to amortization: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | 10 | $ | 1,708 | $ | (515 | ) | $ | 1,193 | $ | 1,669 | $ | (342 | ) | $ | 1,327 | Trademarks | 10 | $ | 1,751 | $ | (715) | $ | 1,036 | $ | 1,708 | $ | (515) | $ | 1,193 | |||||||||||||||||||||||||||||||||||||
Customer relationships | 10 | 9,446 | (2,408 | ) | 7,038 | 9,455 | (1,501 | ) | 7,954 | Customer relationships | 10 | 9,551 | (3,338) | $ | 6,213 | 9,446 | (2,408) | $ | 7,038 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 8 | 400 | (128 | ) | 272 | 314 | (85 | ) | 229 | Other | 8 | 421 | (191) | 230 | 400 | (128) | 272 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 11,554 | $ | (3,051 | ) | $ | 8,503 | $ | 11,438 | $ | (1,928 | ) | $ | 9,510 | Total | $ | 11,723 | $ | (4,244) | $ | 7,479 | $ | 11,554 | $ | (3,051) | $ | 8,503 |
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | |||||||||||||||||||||||||||||||||
Amortization expense | $ | 1,079 | $ | 1,048 | $ | 1,014 | $ | 928 | $ | 901 | $ | 2,509 |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | |||||||||||||||||||
Amortization expense | $ | 1,097 | $ | 1,064 | $ | 1,032 | $ | 1,001 | $ | 922 | $ | 3,387 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Trademarks | $ | 161 | $ | 164 |
December 31, | ||||||||
2019 | 2018 | |||||||
Trademarks | $ | 164 | $ | 164 |
December 31, | ||||||||
2019 | 2018 | |||||||
5.625% Senior notes, semi-annual interest, due August 2019 | $ | — | $ | 411 | ||||
2.200% Senior notes, semi-annual interest, due September 2019 | — | 500 | ||||||
Floating rate notes, quarterly interest, due September 2019 | — | 400 | ||||||
2.750% Senior notes, semi-annual interest, due November 2019 | — | 500 | ||||||
2.800% Senior notes, semi-annual interest, due June 2020 | 600 | 600 | ||||||
5.050% Senior notes, semi-annual interest, due June 2020 | — | 789 | ||||||
4.375% Senior notes, semi-annual interest, due June 2021 | 640 | 650 | ||||||
2.375% Senior notes, euro denominated, annual interest, due March 2022 | 336 | 344 | ||||||
3.300% Senior notes, semi-annual interest, due May 2022 | 496 | 500 | ||||||
3.500% Senior notes, semi-annual interest, due June 2022 | 400 | 400 | ||||||
2.950% Senior notes, semi-annual interest, due March 2023 | 1,167 | 1,185 | ||||||
3.250% Senior notes, semi-annual interest, due April 2023 | 350 | 350 | ||||||
3.800% Senior notes, semi-annual interest, due March 2024 | 450 | 450 | ||||||
2.500% Senior notes, sterling denominated, annual interest, due September 2024 | 525 | 507 | ||||||
3.900% Senior notes, semi-annual interest, due November 2024 | 497 | 497 | ||||||
3.450% Senior notes, semi-annual interest, due March 2025 | 300 | 300 | ||||||
3.950% Senior notes, semi-annual interest, due June 2025 | 500 | 500 | ||||||
4.900% Senior notes, semi-annual interest, due March 2026 | 700 | 700 | ||||||
1.900% Senior notes, euro denominated, annual interest, due March 2027 | 673 | 688 | ||||||
3.950% Senior notes, semi-annual interest, due March 2028 | 1,700 | 1,700 | ||||||
4.125% Senior notes, semi-annual interest, due May 2029 | 750 | — | ||||||
5.000% Senior notes, semi-annual interest, due September 2037 | 1,250 | 1,250 | ||||||
6.350% Senior notes, semi-annual interest, due June 2040 | 850 | 850 | ||||||
4.950% Senior notes, semi-annual interest, due May 2042 | 500 | 500 | ||||||
4.875% Senior notes, semi-annual interest, due April 2043 | 850 | 850 | ||||||
5.200% Senior notes, semi-annual interest, due September 2047 | 1,250 | 1,250 | ||||||
5.300% Senior notes, semi-annual interest, due May 2049 | 750 | — | ||||||
Revolving credit facility | — | 225 | ||||||
Program financing line of credit, quarterly interest based on adjusted LIBOR or variable prime rate | 10 | 22 | ||||||
Total debt (a) | 15,544 | 16,918 | ||||||
Unamortized discount, premium and debt issuance costs, net (b) | (125 | ) | (125 | ) | ||||
Debt, net of unamortized discount, premium and debt issuance costs | 15,419 | 16,793 | ||||||
Current portion of debt | (609 | ) | (1,819 | ) | ||||
Noncurrent portion of debt | $ | 14,810 | $ | 14,974 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
2.800% Senior Notes, semi-annual interest, due June 2020 | $ | 0 | $ | 600 | ||||||||||
4.375% Senior Notes, semi-annual interest, due June 2021 | 335 | 640 | ||||||||||||
2.375% Senior Notes, euro denominated, annual interest, due March 2022 | 369 | 336 | ||||||||||||
3.300% Senior Notes, semi-annual interest, due May 2022 | 168 | 496 | ||||||||||||
3.500% Senior Notes, semi-annual interest, due June 2022 | 62 | 400 | ||||||||||||
2.950% Senior Notes, semi-annual interest, due March 2023 | 796 | 1,167 | ||||||||||||
3.250% Senior Notes, semi-annual interest, due April 2023 | 192 | 350 | ||||||||||||
3.800% Senior Notes, semi-annual interest, due March 2024 | 450 | 450 | ||||||||||||
2.500% Senior Notes, sterling denominated, annual interest, due September 2024 | 545 | 525 | ||||||||||||
3.900% Senior Notes, semi-annual interest, due November 2024 | 497 | 497 | ||||||||||||
3.450% Senior Notes, semi-annual interest, due March 2025 | 300 | 300 | ||||||||||||
3.950% Senior Notes, semi-annual interest, due June 2025 | 500 | 500 | ||||||||||||
4.900% Senior Notes, semi-annual interest, due March 2026 | 700 | 700 | ||||||||||||
1.900% Senior Notes, euro denominated, annual interest, due March 2027 | 739 | 673 | ||||||||||||
3.950% Senior Notes, semi-annual interest, due March 2028 | 1,700 | 1,700 | ||||||||||||
4.125% Senior Notes, semi-annual interest, due May 2029 | 750 | 750 | ||||||||||||
3.625% Senior Notes, semi-annual interest, due May 2030 | 1,000 | 0 | ||||||||||||
5.000% Senior Notes, semi-annual interest, due September 2037 | 548 | 1,250 | ||||||||||||
6.350% Senior Notes, semi-annual interest, due June 2040 | 664 | 850 | ||||||||||||
4.950% Senior Notes, semi-annual interest, due May 2042 | 285 | 500 | ||||||||||||
4.875% Senior Notes, semi-annual interest, due April 2043 | 516 | 850 | ||||||||||||
5.200% Senior Notes, semi-annual interest, due September 2047 | 1,250 | 1,250 | ||||||||||||
5.300% Senior Notes, semi-annual interest, due May 2049 | 750 | 750 | ||||||||||||
4.650% Senior Notes, semi-annual interest, due May 2050 | 1,000 | 0 | ||||||||||||
4.000% Senior Notes, semi-annual interest, due September 2055 | 1,732 | 0 | ||||||||||||
Program financing line of credit, quarterly interest based on adjusted LIBOR or variable prime rate | 0 | 10 | ||||||||||||
Total debt | 15,848 | 15,544 | ||||||||||||
Unamortized discount, premium and debt issuance costs, net (a) | (444) | (125) | ||||||||||||
Debt, net of unamortized discount, premium and debt issuance costs | 15,404 | 15,419 | ||||||||||||
Current portion of debt | (335) | (609) | ||||||||||||
Noncurrent portion of debt | $ | 15,069 | $ | 14,810 | ||||||||||
(a) Current portion of unamortized discount, premium, and debt issuance costs, net is less than $1 million. |
Measurement Period Ending | Maximum Consolidated Leverage Ratio | ||||
March 31, 2020 and June 30, 2020 | 5.00:1.00 | ||||
September 30, 2020 through March 31, 2021 | 5.50:1.00 | ||||
June 30, 2021 | 5.00:1.00 | ||||
September 30, 2021 and thereafter | 4.50:1.00 |
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | |||||||||||||||||||||||||||||||||
Long-term debt repayments | $ | 335 | $ | 599 | $ | 988 | $ | 1,493 | $ | 800 | $ | 11,633 |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | |||||||||||||||||||
Long-term debt repayments | $ | 609 | $ | 640 | $ | 1,232 | $ | 1,517 | $ | 1,473 | $ | 10,073 |
Year Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Operating lease cost | $ | 116 | $ | 114 | ||||||||||
Finance lease cost: | ||||||||||||||
Amortization of right-of-use assets | $ | 52 | $ | 44 | ||||||||||
Interest on lease liabilities | 8 | 9 | ||||||||||||
Total finance lease cost | $ | 60 | $ | 53 | ||||||||||
Variable lease cost | $ | 9 | $ | 10 |
Year Ended December 31, 2019 | ||||
Operating lease cost | $ | 114 | ||
Finance lease cost: | ||||
Amortization of right-of-use assets | $ | 44 | ||
Interest on lease liabilities | 9 | |||
Total finance lease cost | $ | 53 | ||
Variable lease cost | $ | 10 |
Year Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from operating leases | $ | (101) | $ | (98) | ||||||||||
Operating cash flows from finance leases | $ | (8) | $ | (9) | ||||||||||
Financing cash flows from finance leases | $ | (54) | $ | (44) | ||||||||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||||||||
Operating leases | $ | 51 | $ | 369 | ||||||||||
Finance leases | $ | 36 | $ | 38 |
Year Ended December 31, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | (98 | ) | |
Operating cash flows from finance leases | $ | (9 | ) | |
Financing cash flows from finance leases | $ | (44 | ) | |
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | $ | 369 | ||
Finance leases | $ | 38 |
December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating Leases | Location on Balance Sheet | ||||||||||||||||
Operating lease right-of-use assets | Other noncurrent assets | $ | 575 | $ | 613 | ||||||||||||
Operating lease liabilities (current) | Accrued liabilities | $ | 71 | $ | 82 | ||||||||||||
Operating lease liabilities (noncurrent) | Other noncurrent liabilities | 592 | 621 | ||||||||||||||
Total operating lease liabilities | $ | 663 | $ | 703 | |||||||||||||
Finance Leases | |||||||||||||||||
Finance lease right-of-use assets | Property and equipment, net | $ | 220 | $ | 231 | ||||||||||||
Finance lease liabilities (current) | Accrued liabilities | $ | 57 | $ | 47 | ||||||||||||
Finance lease liabilities (noncurrent) | Other noncurrent liabilities | 184 | 203 | ||||||||||||||
Total finance lease liabilities | $ | 241 | $ | 250 |
December 31, 2019 | |||||
Operating Leases | Location on Balance Sheet | ||||
Operating lease right-of-use assets | Other noncurrent assets | $ | 613 | ||
Operating lease liabilities (current) | Accrued liabilities | $ | 82 | ||
Operating lease liabilities (noncurrent) | Other noncurrent liabilities | 621 | |||
Total operating lease liabilities | $ | 703 | |||
Finance Leases | |||||
Finance lease right-of-use assets | Property and equipment, net | $ | 231 | ||
Finance lease liabilities (current) | Accrued liabilities | $ | 47 | ||
Finance lease liabilities (noncurrent) | Other noncurrent liabilities | 203 | |||
Total finance lease liabilities | $ | 250 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Weighted average remaining lease term (in years): | ||||||||||||||
Operating leases | 12 | 13 | ||||||||||||
Finance leases | 5 | 6 | ||||||||||||
Weighted average discount rate | ||||||||||||||
Operating leases | 3.37 | % | 3.77 | % | ||||||||||
Finance leases | 3.80 | % | 3.56 | % |
Operating Leases | Finance Leases | |||||||||||||
2021 | $ | 91 | $ | 64 | ||||||||||
2022 | 76 | 55 | ||||||||||||
2023 | 69 | 48 | ||||||||||||
2024 | 63 | 31 | ||||||||||||
2025 | 58 | 23 | ||||||||||||
Thereafter | 502 | 42 | ||||||||||||
Total lease payments | 859 | 263 | ||||||||||||
Less: Imputed interest | (196) | (22) | ||||||||||||
Total | $ | 663 | $ | 241 |
Operating Leases | Finance Leases | |||||||
2020 | $ | 102 | $ | 56 | ||||
2021 | 96 | 52 | ||||||
2022 | 68 | 43 | ||||||
2023 | 60 | 39 | ||||||
2024 | 57 | 27 | ||||||
Thereafter | 537 | 61 | ||||||
Total lease payments | 920 | 278 | ||||||
Less: Imputed interest | (217 | ) | (28 | ) | ||||
Total | $ | 703 | $ | 250 |
Operating Leases | Capital Leases | |||||||
2019 | $ | 89 | $ | 51 | ||||
2020 | 90 | 46 | ||||||
2021 | 92 | 41 | ||||||
2022 | 58 | 34 | ||||||
2023 | 51 | 41 | ||||||
Thereafter | 564 | 73 | ||||||
Total lease payments | 944 | 286 | ||||||
Less: Imputed interest | — | (34 | ) | |||||
Total | $ | 944 | $ | 252 |
December 31, 2019 | December 31, 2018 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional | Prepaid expenses and other current assets | Other non- current assets | Accrued liabilities | Other non- current liabilities | Notional | Prepaid expenses and other current assets | Other non- current assets | Accrued liabilities | Other non- current liabilities | Notional | Prepaid expenses and other current assets | Other non- current assets | Accrued liabilities | Other non- current liabilities | Notional | Prepaid expenses and other current assets | Other non- current assets | Accrued liabilities | Other non- current liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | Cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | $ | 1,631 | $ | 29 | $ | 7 | $ | 5 | $ | 16 | $ | 267 | $ | 13 | $ | — | $ | 3 | $ | — | Foreign exchange | $ | 1,082 | $ | 2 | $ | 5 | $ | 14 | $ | 17 | $ | 1,631 | $ | 29 | $ | 7 | $ | 5 | $ | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 400 | — | 38 | — | — | — | — | — | — | — | Interest rate swaps | 2,000 | 0 | 11 | 0 | 89 | 400 | 0 | 38 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment hedges: (a) | Net investment hedges: (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | 3,535 | 37 | 70 | 7 | 94 | 3,387 | — | 41 | 39 | 81 | Cross-currency swaps | 3,544 | 34 | 41 | 0 | 154 | 3,535 | 37 | 70 | 7 | 94 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | 52 | — | 4 | — | — | 52 | — | 1 | — | — | Foreign exchange | 44 | 2 | 0 | 0 | 0 | 52 | 0 | 4 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
No hedging designation: | No hedging designation: | No hedging designation: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | 1,177 | — | — | 13 | 50 | 860 | — | 11 | — | — | Foreign exchange | 1,035 | 0 | 0 | 2 | 26 | 1,177 | 0 | 0 | 13 | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | — | — | — | — | — | 25 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | 279 | 3 | — | — | 5 | 64 | — | — | 1 | — | Cross-currency swaps | 139 | 2 | 0 | 0 | 13 | 279 | 3 | 0 | 0 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity (Lionsgate collar) | 65 | 19 | 18 | — | — | 97 | 14 | 27 | — | — | Equity (Lionsgate collar) | 0 | 0 | 0 | 0 | 0 | 65 | 19 | 18 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 88 | $ | 137 | $ | 25 | $ | 165 | $ | 27 | $ | 80 | $ | 43 | $ | 81 | Total | $ | 40 | $ | 57 | $ | 16 | $ | 299 | $ | 88 | $ | 137 | $ | 25 | $ | 165 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Gains (losses) recognized in accumulated other comprehensive loss (a): | ||||||||||||
Foreign exchange - derivative adjustments | $ | 17 | $ | 34 | $ | (41 | ) | |||||
Interest rate - derivative adjustments | 21 | — | — | |||||||||
Gains (losses) reclassified into income from accumulated other comprehensive loss: | ||||||||||||
Foreign exchange - advertising revenue | 6 | (1 | ) | (3 | ) | |||||||
Foreign exchange - distribution revenue | 5 | 9 | (22 | ) | ||||||||
Foreign exchange - costs of revenues | 2 | 11 | — | |||||||||
Interest rate - interest expense | (2 | ) | — | (1 | ) | |||||||
Foreign exchange - other expense, net (dedesignated portion) | 3 | — | — | |||||||||
Amount of gain recognized in income on derivative (amount excluded from effectiveness testing) (b): | ||||||||||||
Interest rate - other expense, net | — | — | 17 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Gains (losses) recognized in accumulated other comprehensive loss: | ||||||||||||||||||||
Foreign exchange - derivative adjustments | $ | 14 | $ | 17 | $ | 34 | ||||||||||||||
Interest rate - derivative adjustments | (124) | 21 | 0 | |||||||||||||||||
Gains (losses) reclassified into income from accumulated other comprehensive loss: | ||||||||||||||||||||
Foreign exchange - advertising revenue | 1 | 6 | (1) | |||||||||||||||||
Foreign exchange - distribution revenue | 30 | 5 | 9 | |||||||||||||||||
Foreign exchange - costs of revenues | 2 | 2 | 11 | |||||||||||||||||
Interest rate - interest expense | 1 | (2) | 0 | |||||||||||||||||
Foreign exchange - other expense, net (dedesignated portion) | 0 | 3 | 0 | |||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
Amount of gain (loss) recognized in AOCI | Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | ||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Gains (losses) recognized in AOCI: | ||||||||||||||||||||||||||
Cross currency swaps | $ | 93 | $ | 43 | $ | (96 | ) | Interest expense, net | $ | 44 | $ | 14 | $ | — | ||||||||||||
Foreign exchange contracts (a) | 4 | — | (18 | ) | N/A | — | — | — | ||||||||||||||||||
Sterling notes (foreign denominated debt) (a) | (17 | ) | 30 | 2 | N/A | — | — | — | ||||||||||||||||||
Total | $ | 80 | $ | 73 | $ | (112 | ) | $ | 44 | $ | 14 | $ | — |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain (loss) recognized in AOCI | Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross currency swaps | $ | (61) | $ | 93 | $ | 43 | Interest expense, net | $ | 43 | $ | 44 | $ | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | (2) | 4 | 0 | Other income (expense), net | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sterling notes (foreign denominated debt) | (20) | (17) | 30 | N/A | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (83) | $ | 80 | $ | 73 | $ | 43 | $ | 44 | $ | 14 |
Year Ended December 31, 2017 | ||||
Gains on changes in fair value of hedged AFS | $ | 18 | ||
Losses on changes in the intrinsic value of equity contracts | (17 | ) | ||
Fair value of equity contracts excluded from effectiveness assessment | 5 | |||
Total in other expense, net | $ | 6 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Interest rate swaps | $ | 0 | $ | 1 | $ | 0 | ||||||||||||||
Cross-currency swaps | (10) | 0 | 4 | |||||||||||||||||
Foreign exchange derivatives | 32 | (65) | 18 | |||||||||||||||||
Credit contracts | 0 | 0 | (1) | |||||||||||||||||
Equity | 7 | 13 | 29 | |||||||||||||||||
Total in other income (expense), net | $ | 29 | $ | (51) | $ | 50 | ||||||||||||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Interest rate swaps | $ | 1 | $ | — | $ | (98 | ) | |||||
Cross-currency swaps | — | 4 | (6 | ) | ||||||||
Foreign exchange | (65 | ) | 18 | — | ||||||||
Credit contracts | — | (1 | ) | (1 | ) | |||||||
Equity | 13 | 29 | — | |||||||||
Total in other expense, net | $ | (51 | ) | $ | 50 | $ | (105 | ) |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Discovery Family | $ | 206 | $ | 206 | ||||||||||
MotorTrend Group LLC ("MTG") | 112 | 118 | ||||||||||||
Oprah Winfrey Network ("OWN") | 10 | 64 | ||||||||||||
Other | 55 | 54 | ||||||||||||
Total | $ | 383 | $ | 442 |
December 31, | ||||||||
2019 | 2018 | |||||||
Discovery Family | $ | 206 | $ | 206 | ||||
MotorTrend Group LLC ("MTG") | 118 | 121 | ||||||
Oprah Winfrey Network ("OWN") | 64 | 58 | ||||||
Other | 54 | 30 | ||||||
Total | $ | 442 | $ | 415 |
December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Beginning balance | $ | 415 | $ | 413 | $ | 243 | ||||||
Initial fair value of redeemable noncontrolling interests of acquired businesses | 25 | — | 137 | |||||||||
Cash distributions to redeemable noncontrolling interests | (39 | ) | (25 | ) | (30 | ) | ||||||
Comprehensive income adjustments: | ||||||||||||
Net income attributable to redeemable noncontrolling interests | 16 | 20 | 24 | |||||||||
Other comprehensive loss adjustments | — | — | 1 | |||||||||
Currency translation on redemption values | 1 | 2 | — | |||||||||
Retained earnings adjustments: | ||||||||||||
Adjustments of redemption values to the floor | 14 | 3 | 38 | |||||||||
Adjustments of carrying value to fair value | 4 | — | — | |||||||||
OWN Interest adjustment | 6 | 2 | — | |||||||||
Ending balance | $ | 442 | $ | 415 | $ | 413 |
December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Beginning balance | $ | 442 | $ | 415 | $ | 413 | ||||||||||||||
Initial fair value of redeemable noncontrolling interests of acquired businesses | 0 | 25 | 0 | |||||||||||||||||
Cash distributions to redeemable noncontrolling interests | (31) | (39) | (25) | |||||||||||||||||
Equity exchange with Harpo for step acquisition of OWN | (50) | 0 | 0 | |||||||||||||||||
Comprehensive income adjustments: | ||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | 12 | 16 | 20 | |||||||||||||||||
Currency translation on redemption values | 3 | 1 | 2 | |||||||||||||||||
Retained earnings adjustments: | ||||||||||||||||||||
Adjustments of carrying value to redemption value (redemption value does not equal fair value) | 0 | 14 | 3 | |||||||||||||||||
Adjustments of carrying value to redemption value (redemption value equals fair value) | 7 | 4 | 0 | |||||||||||||||||
OWN interest adjustment | 0 | 6 | 2 | |||||||||||||||||
Ending balance | $ | 383 | $ | 442 | $ | 415 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Series C Common Stock: | ||||||||||||||||||||
Shares repurchased | 41.6 | 23.2 | 0 | |||||||||||||||||
Purchase price | $ | 965 | $ | 637 | $ | 0 |
Year Ended December 31, 2019 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||||||||||||||||||||
Pretax | Tax Benefit (Expense) | Net-of-tax | Pretax | Tax Benefit (Expense) | Net-of-tax | Pretax | Tax Benefit (Expense) | Net-of-tax | |||||||||||||||||||||||||||
Currency translation adjustments: | |||||||||||||||||||||||||||||||||||
Unrealized (losses) gains: | |||||||||||||||||||||||||||||||||||
Foreign currency | $ | (95 | ) | $ | 14 | $ | (81 | ) | $ | (246 | ) | $ | (6 | ) | $ | (252 | ) | $ | 280 | $ | 3 | $ | 283 | ||||||||||||
Net investment hedges | 56 | 4 | 60 | 59 | — | 59 | (112 | ) | — | (112 | ) | ||||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||||||||
Gain on disposition | 6 | — | 6 | 4 | — | 4 | 12 | — | 12 | ||||||||||||||||||||||||||
Total currency translation adjustments | (33 | ) | 18 | (15 | ) | (183 | ) | (6 | ) | (189 | ) | 180 | 3 | 183 | |||||||||||||||||||||
AFS adjustments (a): | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) AFS securities | — | — | — | — | — | — | 36 | (6 | ) | 30 | |||||||||||||||||||||||||
Reclassifications to other expense, net: | |||||||||||||||||||||||||||||||||||
Hedged portion of AFS securities | — | — | — | — | — | — | (18 | ) | 3 | (15 | ) | ||||||||||||||||||||||||
Total equity investment adjustments | — | — | — | — | — | — | 18 | (3 | ) | 15 | |||||||||||||||||||||||||
Derivative adjustments: | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) | 38 | (9 | ) | 29 | 34 | (8 | ) | 26 | (41 | ) | 15 | (26 | ) | ||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||||||||
Advertising revenue | (6 | ) | 1 | (5 | ) | 1 | — | 1 | 3 | (1 | ) | 2 | |||||||||||||||||||||||
Distribution revenue | (5 | ) | 1 | (4 | ) | (9 | ) | 2 | (7 | ) | 22 | (8 | ) | 14 | |||||||||||||||||||||
Costs of revenues | (2 | ) | — | (2 | ) | (11 | ) | 3 | (8 | ) | — | — | — | ||||||||||||||||||||||
Interest expense | 2 | — | 2 | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||
Other (expense) income, net | (3 | ) | 1 | (2 | ) | — | — | — | (17 | ) | 6 | (11 | ) | ||||||||||||||||||||||
Total derivative adjustments | 24 | (6 | ) | 18 | 15 | (3 | ) | 12 | (32 | ) | 12 | (20 | ) | ||||||||||||||||||||||
Pension plan and SERP liability: | |||||||||||||||||||||||||||||||||||
Unrealized gains | (13 | ) | 3 | (10 | ) | 3 | — | 3 | — | — | — | ||||||||||||||||||||||||
Other comprehensive (loss) income adjustments | $ | (22 | ) | $ | 15 | $ | (7 | ) | $ | (165 | ) | $ | (9 | ) | $ | (174 | ) | $ | 166 | $ | 12 | $ | 178 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax | Tax Benefit (Expense) | Net-of-tax | Pretax | Tax Benefit (Expense) | Net-of-tax | Pretax | Tax Benefit (Expense) | Net-of-tax | |||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency | $ | 357 | $ | 33 | $ | 390 | $ | (95) | $ | 14 | $ | (81) | $ | (246) | $ | (6) | $ | (252) | |||||||||||||||||||||||||||||||||||
Net investment hedges | (109) | 11 | (98) | 56 | 4 | 60 | 59 | 0 | 59 | ||||||||||||||||||||||||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on disposition | 0 | 0 | 0 | 6 | 0 | 6 | 4 | 0 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Total currency translation adjustments | 248 | 44 | 292 | (33) | 18 | (15) | (183) | (6) | (189) | ||||||||||||||||||||||||||||||||||||||||||||
Derivative adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) | (110) | 24 | (86) | 38 | (9) | 29 | 34 | (8) | 26 | ||||||||||||||||||||||||||||||||||||||||||||
Reclassifications from other comprehensive income to net income | (34) | 7 | (27) | (14) | 3 | (11) | (19) | 5 | (14) | ||||||||||||||||||||||||||||||||||||||||||||
Total derivative adjustments | (144) | 31 | (113) | 24 | (6) | 18 | 15 | (3) | 12 | ||||||||||||||||||||||||||||||||||||||||||||
Pension plan and SERP liability: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) | (10) | 2 | (8) | (13) | 3 | (10) | 3 | 0 | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) adjustments | $ | 94 | $ | 77 | $ | 171 | $ | (22) | $ | 15 | $ | (7) | $ | (165) | $ | (9) | $ | (174) |
Currency Translation Adjustments | AFS Adjustments (a) | Derivative Adjustments | Pension Plan and SERP Liability | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
December 31, 2016 | $ | (797 | ) | $ | 11 | $ | 24 | $ | — | $ | (762 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 171 | 30 | (26 | ) | — | 175 | ||||||||||||||
Reclassifications from accumulated other comprehensive loss to net income | 12 | (15 | ) | 6 | — | 3 | ||||||||||||||
Other comprehensive income (loss) | 183 | 15 | (20 | ) | — | 178 | ||||||||||||||
Other comprehensive loss attributable to redeemable noncontrolling interests | (1 | ) | — | — | — | (1 | ) | |||||||||||||
December 31, 2017 | (615 | ) | 26 | 4 | — | (585 | ) | |||||||||||||
Other comprehensive (loss) income before reclassifications | (193 | ) | — | 26 | 3 | (164 | ) | |||||||||||||
Reclassifications from accumulated other comprehensive loss to net income | 4 | — | (14 | ) | — | (10 | ) | |||||||||||||
Other comprehensive (loss) income | (189 | ) | — | 12 | 3 | (174 | ) | |||||||||||||
Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 | — | (26 | ) | — | — | (26 | ) | |||||||||||||
December 31, 2018 | (804 | ) | — | 16 | 3 | (785 | ) | |||||||||||||
Other comprehensive (loss) income before reclassifications | (20 | ) | — | 29 | (10 | ) | (1 | ) | ||||||||||||
Reclassifications from accumulated other comprehensive loss to net income | 6 | — | (11 | ) | — | (5 | ) | |||||||||||||
Other comprehensive (loss) income | (14 | ) | — | 18 | (10 | ) | (6 | ) | ||||||||||||
Other comprehensive loss attributable to redeemable noncontrolling interests | (1 | ) | — | — | — | (1 | ) | |||||||||||||
Reclassifications to retained earnings resulting from the adoption of ASU 2018-02 | (28 | ) | — | (2 | ) | — | (30 | ) | ||||||||||||
December 31, 2019 | $ | (847 | ) | $ | — | $ | 32 | $ | (7 | ) | $ | (822 | ) |
Currency Translation | AFS (a) | Derivative Adjustments | Pension Plan and SERP Liability | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||
December 31, 2017 | $ | (615) | $ | 26 | $ | 4 | $ | 0 | $ | (585) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (193) | 0 | 26 | 3 | (164) | |||||||||||||||||||||||||||
Reclassifications from accumulated other comprehensive loss to net income | 4 | 0 | (14) | 0 | (10) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (189) | 0 | 12 | 3 | (174) | |||||||||||||||||||||||||||
Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 | 0 | (26) | 0 | 0 | (26) | |||||||||||||||||||||||||||
December 31, 2018 | (804) | 0 | 16 | 3 | (785) | |||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (20) | 0 | 29 | (10) | (1) | |||||||||||||||||||||||||||
Reclassifications from accumulated other comprehensive loss to net income | 6 | 0 | (11) | 0 | (5) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (14) | 0 | 18 | (10) | (6) | |||||||||||||||||||||||||||
Other comprehensive loss attributable to redeemable noncontrolling interests | (1) | 0 | 0 | 0 | (1) | |||||||||||||||||||||||||||
Reclassifications to retained earnings resulting from the adoption of ASU 2018-02 | (28) | 0 | (2) | 0 | (30) | |||||||||||||||||||||||||||
December 31, 2019 | (847) | 0 | 32 | (7) | (822) | |||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 292 | 0 | (86) | (8) | 198 | |||||||||||||||||||||||||||
Reclassifications from accumulated other comprehensive loss to net income | 0 | 0 | (27) | 0 | (27) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | 292 | 0 | (113) | (8) | 171 | |||||||||||||||||||||||||||
December 31, 2020 | $ | (555) | $ | 0 | $ | (81) | $ | (15) | $ | (651) |
Year Ended December 31, 2020 | |||||||||||||||||||||||
U.S. Networks | International Networks | Corporate, inter-segment eliminations, and other | Total | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Advertising | $ | 4,012 | $ | 1,571 | $ | 0 | $ | 5,583 | |||||||||||||||
Distribution | 2,852 | 2,014 | 0 | 4,866 | |||||||||||||||||||
Other | 85 | 128 | 9 | 222 | |||||||||||||||||||
Totals | $ | 6,949 | $ | 3,713 | $ | 9 | $ | 10,671 | |||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||
U.S. Networks | International Networks | Corporate, inter-segment eliminations, and other | Total | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Advertising | $ | 4,245 | $ | 1,799 | $ | 0 | $ | 6,044 | |||||||||||||||
Distribution | 2,739 | 2,096 | 0 | 4,835 | |||||||||||||||||||
Other | 108 | 146 | 11 | 265 | |||||||||||||||||||
Totals | $ | 7,092 | $ | 4,041 | $ | 11 | $ | 11,144 | |||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||
U.S. Networks | International Networks | Corporate, inter-segment eliminations, and other | Total | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Advertising | $ | 3,749 | $ | 1,765 | $ | 0 | $ | 5,514 | |||||||||||||||
Distribution | 2,456 | 2,082 | 0 | 4,538 | |||||||||||||||||||
Other | 145 | 302 | 54 | 501 | |||||||||||||||||||
Totals | $ | 6,350 | $ | 4,149 | $ | 54 | $ | 10,553 |
Year Ended December 31, 2019 | |||||||||||||||||||
U.S. Networks | International Networks | Other | Corporate and inter-segment | Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Advertising | $ | 4,245 | $ | 1,799 | $ | — | $ | — | $ | 6,044 | |||||||||
Distribution | 2,739 | 2,096 | — | — | 4,835 | ||||||||||||||
Other | 108 | 146 | 11 | — | 265 | ||||||||||||||
Totals | $ | 7,092 | $ | 4,041 | $ | 11 | $ | — | $ | 11,144 | |||||||||
Year Ended December 31, 2018 | |||||||||||||||||||
U.S. Networks | International Networks | Other | Corporate and inter-segment | Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Advertising | $ | 3,749 | $ | 1,765 | $ | — | $ | — | $ | 5,514 | |||||||||
Distribution | 2,456 | 2,082 | — | — | 4,538 | ||||||||||||||
Other | 145 | 302 | 54 | — | 501 | ||||||||||||||
Totals | $ | 6,350 | $ | 4,149 | $ | 54 | $ | — | $ | 10,553 | |||||||||
Year Ended December 31, 2017 | |||||||||||||||||||
U.S. Networks | International Networks | Other | Corporate and inter-segment | Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Advertising | $ | 1,740 | $ | 1,332 | $ | 1 | $ | — | $ | 3,073 | |||||||||
Distribution | 1,612 | 1,862 | — | — | 3,474 | ||||||||||||||
Other | 82 | 87 | 157 | — | 326 | ||||||||||||||
Totals | $ | 3,434 | $ | 3,281 | $ | 158 | $ | — | $ | 6,873 |
December 31, 2019 | Impact of adoption of ASU 2016-13 | Provisions for credit losses | Write-offs | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Distribution customers | $ | 19 | $ | 1 | $ | 9 | $ | (11) | $ | 18 | ||||||||||||||||||||||||||||
Advertising and other customers | 35 | (3) | 21 | (12) | 41 | |||||||||||||||||||||||||||||||||
Total | $ | 54 | $ | (2) | $ | 30 | $ | (23) | $ | 59 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
PRSUs | $ | 8 | $ | 46 | $ | 24 | ||||||||||||||
RSUs | 76 | 41 | 27 | |||||||||||||||||
Stock options | 30 | 33 | 22 | |||||||||||||||||
SARs | (4) | 22 | 8 | |||||||||||||||||
ESPP and other | 0 | 0 | (1) | |||||||||||||||||
Total share-based compensation expense | $ | 110 | $ | 142 | $ | 80 | ||||||||||||||
Tax benefit recognized | $ | 18 | $ | 17 | $ | 13 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
PRSUs | $ | 46 | $ | 24 | $ | 6 | ||||||
RSUs | 41 | 27 | 23 | |||||||||
Stock options | 33 | 22 | 12 | |||||||||
SARs | 22 | 8 | (3 | ) | ||||||||
ESPP and other | — | (1 | ) | 1 | ||||||||
Total share-based compensation expense | $ | 142 | $ | 80 | $ | 39 | ||||||
Tax benefit recognized | $ | 17 | $ | 13 | $ | 9 |
PRSUs | Weighted- Average Grant Date Fair Value | Weighted-Average Remaining Contractual Term (years) | Aggregate Fair Value | ||||||||||
Outstanding as of December 31, 2018 | 2.9 | $ | 28.98 | 0.8 | $ | 69 | |||||||
Granted | 0.5 | $ | 28.62 | ||||||||||
Converted | (1.1 | ) | $ | 33.31 | $ | 29 | |||||||
Forfeited | (0.1 | ) | $ | 25.55 | |||||||||
Outstanding as of December 31, 2019 | 2.2 | $ | 26.89 | 0.5 | $ | 71 | |||||||
Vested and expected to vest as of December 31, 2019 | 2.2 | $ | 26.89 | 0.5 | $ | 71 | |||||||
Convertible as of December 31, 2019 | 0.3 | $ | 25.08 | 0.0 | $ | 10 |
PRSUs | Weighted- Average Grant Date Fair Value | Weighted-Average Remaining Contractual Term (years) | Aggregate Fair Value | |||||||||||||||||||||||
Outstanding as of December 31, 2019 | 2.2 | $ | 26.89 | 0.5 | $ | 71 | ||||||||||||||||||||
Granted | 0.5 | $ | 25.70 | |||||||||||||||||||||||
Converted | (1.2) | $ | 26.79 | $ | 33 | |||||||||||||||||||||
Forfeited | 0 | $ | 0 | |||||||||||||||||||||||
Outstanding as of December 31, 2020 | 1.5 | $ | 26.57 | 0.0 | $ | 45 | ||||||||||||||||||||
Vested and expected to vest as of December 31, 2020 | 1.5 | $ | 26.57 | 0.0 | $ | 45 | ||||||||||||||||||||
Convertible as of December 31, 2020 | 0.9 | $ | 26.80 | 0.0 | $ | 28 |
RSUs | Weighted- Average Grant Date Fair Value | Weighted-Average Remaining Contractual Term (years) | Aggregate Fair Value | ||||||||||
Outstanding as of December 31, 2018 | 4.9 | $ | 25.95 | 2.6 | $ | 120 | |||||||
Granted | 3.2 | $ | 29.03 | ||||||||||
Vested | (0.8 | ) | $ | 28.09 | $ | 23 | |||||||
Forfeited | (0.8 | ) | $ | 26.48 | |||||||||
Outstanding as of December 31, 2019 | 6.5 | $ | 27.14 | 1.5 | $ | 213 | |||||||
Vested and expected to vest as of December 31, 2019 | 6.5 | $ | 27.14 | 1.5 | $ | 213 |
RSUs | Weighted- Average Grant Date Fair Value | Weighted-Average Remaining Contractual Term (years) | Aggregate Fair Value | |||||||||||||||||||||||
Outstanding as of December 31, 2019 | 6.5 | $ | 27.14 | 1.5 | $ | 213 | ||||||||||||||||||||
Granted | 4.6 | $ | 25.50 | |||||||||||||||||||||||
Vested | (1.7) | $ | 26.82 | $ | 45 | |||||||||||||||||||||
Forfeited | (0.8) | $ | 27.13 | |||||||||||||||||||||||
Outstanding as of December 31, 2020 | 8.6 | $ | 26.31 | 2.8 | $ | 259 | ||||||||||||||||||||
Vested and expected to vest as of December 31, 2020 | 8.6 | $ | 26.31 | 2.8 | $ | 259 |
Stock Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | ||||||||||
Outstanding as of December 31, 2018 | 21.1 | $ | 28.86 | 5.3 | $ | 9 | |||||||
Granted | 2.1 | $ | 31.01 | ||||||||||
Exercised | (0.9 | ) | $ | 24.60 | $ | 4 | |||||||
Forfeited | (0.9 | ) | $ | 29.54 | |||||||||
Outstanding as of December 31, 2019 | 21.4 | $ | 29.24 | 4.7 | $ | 83 | |||||||
Vested and expected to vest as of December 31, 2019 | 21.4 | $ | 29.24 | 4.7 | $ | 83 | |||||||
Exercisable as of December 31, 2019 | 5.6 | $ | 28.98 | 2.7 | $ | 27 |
Stock Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | |||||||||||||||||||||||
Outstanding as of December 31, 2019 | 21.4 | $ | 29.24 | 4.7 | $ | 83 | ||||||||||||||||||||
Granted | 1.3 | $ | 25.70 | |||||||||||||||||||||||
Exercised | (0.4) | $ | 19.75 | $ | 3 | |||||||||||||||||||||
Forfeited | (1.3) | $ | 32.66 | |||||||||||||||||||||||
Outstanding as of December 31, 2020 | 21.0 | $ | 29.00 | 4.0 | $ | 41 | ||||||||||||||||||||
Vested and expected to vest as of December 31, 2020 | 21.0 | $ | 29.00 | 4.0 | $ | 41 | ||||||||||||||||||||
Exercisable as of December 31, 2020 | 6.5 | $ | 27.90 | 2.6 | $ | 20 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Risk-free interest rate | 0.89 | % | 2.67 | % | 2.74 | % | ||||||||||||||
Expected term (years) | 5 | 5.5 | 5.5 | |||||||||||||||||
Expected volatility | 31.86 | % | 30.44 | % | 29.57 | % | ||||||||||||||
Dividend yield | 0 | 0 | 0 |
Year Ended December 31, | |||||||||
2019 | 2018 | 2017 | |||||||
Risk-free interest rate | 2.67 | % | 2.74 | % | 1.87 | % | |||
Expected term (years) | 5.5 | 5.5 | 5.0 | ||||||
Expected volatility | 30.44 | % | 29.57 | % | 27.52 | % | |||
Dividend yield | — | — | — |
SARs | Weighted- Average Grant Price | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | ||||||||||
Outstanding as of December 31, 2018 | 7.6 | $ | 25.10 | 1.2 | $ | 6 | |||||||
Granted | — | $ | — | ||||||||||
Settled | (0.9 | ) | $ | 22.45 | $ | 3 | |||||||
Forfeited | (1.8 | ) | $ | 28.21 | |||||||||
Outstanding as of December 31, 2019 | 4.9 | $ | 24.44 | 0.8 | $ | 35 | |||||||
Vested and expected to vest as of December 31, 2019 | 4.9 | $ | 24.44 | 0.8 | $ | 35 |
SARs | Weighted- Average Grant Price | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | |||||||||||||||||||||||
Outstanding as of December 31, 2019 | 4.9 | $ | 24.44 | 0.8 | $ | 35 | ||||||||||||||||||||
Granted | 0 | $ | 0 | |||||||||||||||||||||||
Settled | (2.3) | $ | 24.88 | $ | 14 | |||||||||||||||||||||
Forfeited | 0 | $ | 0 | |||||||||||||||||||||||
Outstanding as of December 31, 2020 | 2.6 | $ | 24.01 | 0.5 | $ | 12 | ||||||||||||||||||||
Vested and expected to vest as of December 31, 2020 | 2.6 | $ | 24.01 | 0.5 | $ | 12 |
Year Ended December 31, | |||||||||
2019 | 2018 | 2017 | |||||||
Risk-free interest rate | 1.60 | % | 2.53 | % | 1.74 | % | |||
Expected term (years) | 0.8 | 1.2 | 1.0 | ||||||
Expected volatility | 30.54 | % | 36.52 | % | 31.37 | % | |||
Dividend yield | — | — | — |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Risk-free interest rate | 0.10 | % | 1.60 | % | 2.53 | % | ||||||||||||||
Expected term (years) | 0.5 | 0.8 | 1.2 | |||||||||||||||||
Expected volatility | 42.13 | % | 30.54 | % | 36.52 | % | ||||||||||||||
Dividend yield | 0 | 0 | 0 |
Pension Plan | SERP | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Projected benefit obligation | $ | 94 | $ | 90 | $ | 25 | $ | 26 | ||||||||||||||||||
Fair value of plan assets (Level 1) | $ | 70 | $ | 68 | $ | 0 | $ | 0 | ||||||||||||||||||
Discount rate | 1.92 | % | 2.82 | % | 1.58 | % | 2.61 | % | ||||||||||||||||||
Pension Plan | SERP | |||||||||||||||
December 31, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Projected benefit obligation | $ | 90 | $ | 84 | $ | 26 | $ | 26 | ||||||||
Fair value of plan assets (Level 1) | $ | 68 | $ | 70 | $ | — | $ | — | ||||||||
Discount rate | 2.82 | % | 3.93 | % | 2.61 | % | 3.77 | % |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
U.S. Networks | $ | 41 | $ | 15 | $ | 322 | ||||||||||||||
International Networks | 29 | 20 | 307 | |||||||||||||||||
Corporate, inter-segment eliminations, and other | 21 | (9) | 121 | |||||||||||||||||
Total restructuring and other charges | $ | 91 | $ | 26 | $ | 750 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
U.S. Networks | $ | 15 | $ | 322 | $ | 18 | ||||||
International Networks | 20 | 307 | 42 | |||||||||
Other | — | 1 | 3 | |||||||||
Corporate and inter-segment eliminations | (9 | ) | 120 | 12 | ||||||||
Total restructuring and other charges | $ | 26 | $ | 750 | $ | 75 |
U.S. Networks | International Networks | Corporate, inter-segment eliminations, and other | Total | |||||||||||||||||||||||
December 31, 2018 | $ | 16 | $ | 46 | $ | 46 | $ | 108 | ||||||||||||||||||
Net contract termination accruals | 0 | 0 | (6) | (6) | ||||||||||||||||||||||
Employee termination accruals, net | 15 | 20 | (10) | 25 | ||||||||||||||||||||||
Other accruals, net | 0 | 0 | 1 | 1 | ||||||||||||||||||||||
Cash paid | (27) | (61) | (22) | (110) | ||||||||||||||||||||||
December 31, 2019 | 4 | 5 | 9 | 18 | ||||||||||||||||||||||
Net contract termination accruals | 0 | 0 | 4 | 4 | ||||||||||||||||||||||
Employee termination accruals, net | 41 | 29 | 13 | 83 | ||||||||||||||||||||||
Other accruals, net | 0 | 0 | 4 | 4 | ||||||||||||||||||||||
Cash paid | (22) | (14) | (15) | (51) | ||||||||||||||||||||||
December 31, 2020 | $ | 23 | $ | 20 | $ | 15 | $ | 58 |
U.S. Networks | International Networks | Other | Corporate and inter-segment eliminations (a) | Total | ||||||||||||||||
December 31, 2017 | $ | 5 | $ | 25 | $ | 1 | $ | 12 | $ | 43 | ||||||||||
Net contract termination accruals | 12 | 67 | — | 14 | 93 | |||||||||||||||
Net employee relocation/termination accruals | 89 | 56 | 1 | 99 | 245 | |||||||||||||||
Cash paid | (90 | ) | (102 | ) | (2 | ) | (79 | ) | (273 | ) | ||||||||||
December 31, 2018 | 16 | 46 | — | 46 | 108 | |||||||||||||||
Net contract termination accruals | — | — | — | (6 | ) | (6 | ) | |||||||||||||
Net employee relocation/termination accruals | 15 | 20 | — | (10 | ) | 25 | ||||||||||||||
Other accruals | — | — | — | 1 | 1 | |||||||||||||||
Cash paid | (27 | ) | (61 | ) | — | (22 | ) | (110 | ) | |||||||||||
December 31, 2019 | $ | 4 | $ | 5 | $ | — | $ | 9 | $ | 18 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Domestic | $ | 1,916 | $ | 1,910 | $ | 1,125 | ||||||||||||||
Foreign | (188) | 384 | (103) | |||||||||||||||||
Income before income taxes | $ | 1,728 | $ | 2,294 | $ | 1,022 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Domestic | $ | 1,910 | $ | 1,125 | $ | 815 | ||||||
Foreign | 384 | (103 | ) | (952 | ) | |||||||
Income (loss) before income taxes | $ | 2,294 | $ | 1,022 | $ | (137 | ) |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | 422 | $ | 411 | $ | 323 | ||||||||||||||
State and local | 12 | 42 | 30 | |||||||||||||||||
Foreign | 125 | 132 | 119 | |||||||||||||||||
559 | 585 | 472 | ||||||||||||||||||
Deferred: | ||||||||||||||||||||
Federal | (14) | (54) | (113) | |||||||||||||||||
State and local | (24) | (8) | (21) | |||||||||||||||||
Foreign | (148) | (442) | 3 | |||||||||||||||||
(186) | (504) | (131) | ||||||||||||||||||
Income taxes | $ | 373 | $ | 81 | $ | 341 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Current: | ||||||||||||
Federal | $ | 411 | $ | 323 | $ | 177 | ||||||
State and local | 42 | 30 | 45 | |||||||||
Foreign | 132 | 119 | 153 | |||||||||
585 | 472 | 375 | ||||||||||
Deferred: | ||||||||||||
Federal | (54 | ) | (113 | ) | (124 | ) | ||||||
State and local | (8 | ) | (21 | ) | (7 | ) | ||||||
Foreign | (442 | ) | 3 | (68 | ) | |||||||
(504 | ) | (131 | ) | (199 | ) | |||||||
Income taxes | $ | 81 | $ | 341 | $ | 176 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||
Pre-tax income at U.S. federal statutory income tax rate | $ | 363 | 21 | % | $ | 482 | 21 | % | $ | 215 | 21 | % | ||||||||||||||||||||||||||
State and local income taxes, net of federal tax benefit | (10) | 0 | % | 27 | 1 | % | 10 | 1 | % | |||||||||||||||||||||||||||||
Effect of foreign operations | 7 | 0 | % | (21) | (1) | % | 111 | 11 | % | |||||||||||||||||||||||||||||
Noncontrolling interest adjustment | (29) | (2) | % | (30) | (1) | % | (18) | (2) | % | |||||||||||||||||||||||||||||
Impairment of goodwill | 25 | 2 | % | 32 | 1 | % | 0 | 0 | % | |||||||||||||||||||||||||||||
Deferred tax adjustment | (22) | (1) | % | 0 | 0 | % | 0 | 0 | % | |||||||||||||||||||||||||||||
Non-deductible compensation | 17 | 1 | % | 22 | 1 | % | 20 | 2 | % | |||||||||||||||||||||||||||||
Change in uncertain tax positions | 17 | 1 | % | 3 | 0 | % | 37 | 3 | % | |||||||||||||||||||||||||||||
Legal entity restructuring, deferred tax impact | 0 | 0 | % | (445) | (19) | % | 0 | 0 | % | |||||||||||||||||||||||||||||
Renewable energy investments tax credits | 0 | 0 | % | (1) | 0 | % | (12) | (1) | % | |||||||||||||||||||||||||||||
U.S. legislative changes | 0 | 0 | % | 0 | 0 | % | (19) | (2) | % | |||||||||||||||||||||||||||||
Other, net | 5 | 0 | % | 12 | 1 | % | (3) | 0 | % | |||||||||||||||||||||||||||||
Income tax expense | $ | 373 | 22 | % | $ | 81 | 4 | % | $ | 341 | 33 | % |
Year Ended December 31, | |||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||
U.S. federal statutory income tax provision | $ | 482 | 21 | % | $ | 215 | 21 | % | $ | (48 | ) | 35 | % | ||||||||
State and local income taxes, net of federal tax benefit | 27 | 1 | % | 10 | 1 | % | 23 | (18 | )% | ||||||||||||
Effect of foreign operations | (21 | ) | (1 | )% | 111 | 11 | % | (35 | ) | 25 | % | ||||||||||
Domestic production activity deductions | — | — | % | — | — | % | (52 | ) | 39 | % | |||||||||||
Change in uncertain tax positions | 3 | — | % | 37 | 3 | % | 60 | (44 | )% | ||||||||||||
Legal entity restructuring, deferred tax impact | (445 | ) | (19 | )% | — | — | % | — | — | % | |||||||||||
Preferred stock modification | — | — | % | — | — | % | 12 | (9 | )% | ||||||||||||
Impairment of goodwill | 32 | 1 | % | — | — | % | 458 | (334 | )% | ||||||||||||
Renewable energy investments tax credits (See Note 4) | (1 | ) | — | % | (12 | ) | (1 | )% | (195 | ) | 142 | % | |||||||||
Noncontrolling interest adjustment | (30 | ) | (1 | )% | (18 | ) | (2 | )% | — | — | % | ||||||||||
U.S. legislative changes | — | — | % | (19 | ) | (2 | )% | (43 | ) | 32 | % | ||||||||||
Non-deductible compensation | 22 | 1 | % | 20 | 2 | % | — | — | % | ||||||||||||
Other, net | 12 | 1 | % | (3 | ) | — | % | (4 | ) | 4 | % | ||||||||||
Income tax expense | $ | 81 | 4 | % | $ | 341 | 33 | % | $ | 176 | (128 | )% |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Deferred income tax assets: | ||||||||||||||
Accounts receivable | $ | 7 | $ | 12 | ||||||||||
Tax attribute carry-forward | 354 | 311 | ||||||||||||
Accrued liabilities and other | 471 | 342 | ||||||||||||
Total deferred income tax assets | 832 | 665 | ||||||||||||
Valuation allowance | (257) | (307) | ||||||||||||
Net deferred income tax assets | 575 | 358 | ||||||||||||
Deferred income tax liabilities: | ||||||||||||||
Intangible assets | (654) | (849) | ||||||||||||
Content rights | (163) | (148) | ||||||||||||
Equity method and other investments in partnerships | (470) | (471) | ||||||||||||
Noncurrent portion of debt | (85) | 0 | ||||||||||||
Other | (140) | (106) | ||||||||||||
Total deferred income tax liabilities | (1,512) | (1,574) | ||||||||||||
Net deferred income tax liabilities | $ | (937) | $ | (1,216) |
December 31, | ||||||||
2019 | 2018 | |||||||
Deferred income tax assets: | ||||||||
Accounts receivable | $ | 12 | $ | 11 | ||||
Tax attribute carry-forward | 311 | 321 | ||||||
Accrued liabilities and other | 342 | 302 | ||||||
Total deferred income tax assets | 665 | 634 | ||||||
Valuation allowance | (307 | ) | (336 | ) | ||||
Net deferred income tax assets | 358 | 298 | ||||||
Deferred income tax liabilities: | ||||||||
Intangible assets | (849 | ) | (1,418 | ) | ||||
Content rights | (148 | ) | (107 | ) | ||||
Equity method and other investments in partnerships | (471 | ) | (488 | ) | ||||
Other | (106 | ) | (15 | ) | ||||
Total deferred income tax liabilities | (1,574 | ) | (2,028 | ) | ||||
Net deferred income tax liabilities | $ | (1,216 | ) | $ | (1,730 | ) |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Noncurrent deferred income tax assets (included within other noncurrent assets) | $ | 597 | $ | 475 | ||||||||||
Deferred income tax liabilities | (1,534) | (1,691) | ||||||||||||
Net deferred income tax liabilities | $ | (937) | $ | (1,216) |
December 31, | ||||||||
2019 | 2018 | |||||||
Noncurrent deferred income tax assets (included within other noncurrent assets) | $ | 475 | $ | 81 | ||||
Deferred income tax liabilities (classified on the balance sheet) | (1,691 | ) | (1,811 | ) | ||||
Net deferred income tax liabilities | $ | (1,216 | ) | $ | (1,730 | ) |
Federal | State | Foreign | ||||||||||||||||||
Loss carry-forwards | $ | 9 | $ | 315 | $ | 2,303 | ||||||||||||||
Deferred tax asset related to loss carry-forwards | 2 | 16 | 269 | |||||||||||||||||
Valuation allowance against loss carry-forwards | 0 | (15) | (138) | |||||||||||||||||
Earliest expiration date of loss carry-forwards | 2034 | 2021 | 2021 |
Federal | State | Foreign | ||||||||||
Loss carry-forwards | $ | 9 | $ | 351 | $ | 2,033 | ||||||
Deferred tax asset related to loss carry-forwards | 2 | 17 | 249 | |||||||||
Valuation allowance against loss carry-forwards | (2 | ) | (17 | ) | (213 | ) | ||||||
Earliest expiration date of loss carry-forwards | 2034 | 2020 | 2020 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Beginning balance | $ | 375 | $ | 378 | $ | 189 | ||||||||||||||
Additions based on tax positions related to the current year | 31 | 54 | 43 | |||||||||||||||||
Additions for tax positions of prior years | 4 | 11 | 52 | |||||||||||||||||
Additions for tax positions acquired in business combinations | 0 | 47 | 169 | |||||||||||||||||
Reductions for tax positions of prior years | (5) | (47) | (9) | |||||||||||||||||
Settlements | (9) | (19) | (6) | |||||||||||||||||
Reductions due to lapse of statutes of limitations | (51) | (50) | (52) | |||||||||||||||||
Changes due to foreign currency exchange rates | 3 | 1 | (8) | |||||||||||||||||
Ending balance | $ | 348 | $ | 375 | $ | 378 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Beginning balance | $ | 378 | $ | 189 | $ | 117 | ||||||
Additions based on tax positions related to the current year | 54 | 43 | 27 | |||||||||
Additions for tax positions of prior years | 11 | 52 | 57 | |||||||||
Additions for tax positions acquired in business combinations | 47 | 169 | — | |||||||||
Reductions for tax positions of prior years | (47 | ) | (9 | ) | — | |||||||
Settlements | (19 | ) | (6 | ) | (8 | ) | ||||||
Reductions due to lapse of statutes of limitations | (50 | ) | (52 | ) | (6 | ) | ||||||
Changes due to foreign currency exchange rates | 1 | (8 | ) | 2 | ||||||||
Ending balance | $ | 375 | $ | 378 | $ | 189 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Numerator: | ||||||||||||||||||||
Net income | $ | 1,355 | $ | 2,213 | $ | 681 | ||||||||||||||
Less: | ||||||||||||||||||||
Allocation of undistributed income to Series A-1 convertible preferred stock | (128) | (204) | (60) | |||||||||||||||||
Net income attributable to noncontrolling interests | (124) | (128) | (67) | |||||||||||||||||
Net income attributable to redeemable noncontrolling interests | (12) | (16) | (20) | |||||||||||||||||
Redeemable noncontrolling interest adjustments to redemption value | 0 | (20) | (5) | |||||||||||||||||
Net income available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | $ | 1,091 | $ | 1,845 | $ | 529 | ||||||||||||||
Allocation of net income: | ||||||||||||||||||||
Series A, B and C common stockholders | 919 | 1,531 | 429 | |||||||||||||||||
Series C-1 convertible preferred stockholders | 172 | 314 | 100 | |||||||||||||||||
Total | 1,091 | 1,845 | 529 | |||||||||||||||||
Add: | ||||||||||||||||||||
Allocation of undistributed income to Series A-1 convertible preferred stockholders | 128 | 204 | 60 | |||||||||||||||||
Net income available to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share | $ | 1,219 | $ | 2,049 | $ | 589 | ||||||||||||||
Denominator — weighted average: | ||||||||||||||||||||
Series A, B and C common shares outstanding — basic | 505 | 529 | 498 | |||||||||||||||||
Impact of assumed preferred stock conversion | 165 | 179 | 187 | |||||||||||||||||
Dilutive effect of share-based awards | 2 | 3 | 3 | |||||||||||||||||
Series A, B and C common shares outstanding — diluted | 672 | 711 | 688 | |||||||||||||||||
Series C-1 convertible preferred stock outstanding — basic and diluted | 5 | 6 | 6 | |||||||||||||||||
Basic net income per share allocated to: | ||||||||||||||||||||
Series A, B and C common stockholders | $ | 1.82 | $ | 2.90 | $ | 0.86 | ||||||||||||||
Series C-1 convertible preferred stockholders | $ | 35.24 | $ | 56.07 | $ | 16.65 | ||||||||||||||
Diluted net income per share allocated to: | ||||||||||||||||||||
Series A, B and C common stockholders | $ | 1.81 | $ | 2.88 | $ | 0.86 | ||||||||||||||
Series C-1 convertible preferred stockholders | $ | 35.12 | $ | 55.80 | $ | 16.58 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | 2,213 | $ | 681 | $ | (313 | ) | |||||
Less: | ||||||||||||
Allocation of undistributed income to Series A-1 convertible preferred stock | (204 | ) | (60 | ) | 41 | |||||||
Net income attributable to noncontrolling interests | (128 | ) | (67 | ) | — | |||||||
Net income attributable to redeemable noncontrolling interests | (16 | ) | (20 | ) | (24 | ) | ||||||
Redeemable noncontrolling interest adjustments to redemption value | (20 | ) | (5 | ) | — | |||||||
Net income (loss) available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | $ | 1,845 | $ | 529 | $ | (296 | ) | |||||
Allocation of net income (loss) available to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: | ||||||||||||
Series A, B and C common stockholders | 1,531 | 429 | (225 | ) | ||||||||
Series C-1 convertible preferred stockholders | 314 | 100 | (71 | ) | ||||||||
Total | 1,845 | 529 | (296 | ) | ||||||||
Add: | ||||||||||||
Allocation of undistributed income to Series A-1 convertible preferred stockholders | 204 | 60 | (41 | ) | ||||||||
Net income (loss) available to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share | $ | 2,049 | $ | 589 | $ | (337 | ) | |||||
Denominator — weighted average: | ||||||||||||
Series A, B and C common shares outstanding — basic | 529 | 498 | 384 | |||||||||
Impact of assumed preferred stock conversion | 179 | 187 | 192 | |||||||||
Dilutive effect of share-based awards | 3 | 3 | — | |||||||||
Series A, B and C common shares outstanding — diluted | 711 | 688 | 576 | |||||||||
Series C-1 convertible preferred stock outstanding — basic and diluted | 6 | 6 | 6 | |||||||||
Basic net income (loss) per share available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: | ||||||||||||
Series A, B and C common stockholders | $ | 2.90 | $ | 0.86 | $ | (0.59 | ) | |||||
Series C-1 convertible preferred stockholders | $ | 56.07 | $ | 16.65 | $ | (11.33 | ) | |||||
Diluted net income (loss) per share available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: | ||||||||||||
Series A, B and C common stockholders | $ | 2.88 | $ | 0.86 | $ | (0.59 | ) | |||||
Series C-1 convertible preferred stockholders | $ | 55.80 | $ | 16.58 | $ | (11.33 | ) |
Year Ended December 31, | |||||||||
2019 | 2018 | 2017 | |||||||
Anti-dilutive share-based awards | 17 | 15 | 19 | ||||||
PRSUs whose performance targets have not yet been achieved | — | 1 | 2 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Anti-dilutive share-based awards | 24 | 17 | 15 | |||||||||||||||||
PRSUs whose performance targets have not yet been achieved | 0 | 0 | 1 | |||||||||||||||||
December 31, | |||||||||||||||||
Useful Lives | 2020 | 2019 | |||||||||||||||
Broadcast equipment (a) | 3 - 5 years | $ | 744 | $ | 676 | ||||||||||||
Office equipment, furniture, fixtures and other | 3 - 5 years | 734 | 606 | ||||||||||||||
Capitalized software costs | 2 - 5 years | 757 | 519 | ||||||||||||||
Land, buildings and leasehold improvements (b) | 39 years | 334 | 298 | ||||||||||||||
Property and equipment, at cost | 2,569 | 2,099 | |||||||||||||||
Accumulated depreciation | (1,363) | (1,148) | |||||||||||||||
Property and equipment, net | $ | 1,206 | $ | 951 | |||||||||||||
(a) Property and equipment includes assets acquired under finance lease arrangements, primarily satellite transponders classified as broadcast equipment. Assets acquired under finance lease arrangements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the terms of the related leases. (See Note 9.) | |||||||||||||||||
(b) Land has an indefinite life and is not depreciated. Leasehold improvements have an estimated useful life of the shorter of five years or the lease term. |
December 31, | |||||||||
Useful Lives | 2019 | 2018 | |||||||
Broadcast equipment (a) | 3 - 5 years | $ | 676 | $ | 730 | ||||
Office equipment, furniture, fixtures and other | 3 - 5 years | 606 | 458 | ||||||
Capitalized software costs | 2 - 5 years | 519 | 440 | ||||||
Land, buildings and leasehold improvements (b) | 39 years | 298 | 365 | ||||||
Property and equipment, at cost | 2,099 | 1,993 | |||||||
Accumulated depreciation | (1,148 | ) | (1,193 | ) | |||||
Property and equipment, net | $ | 951 | $ | 800 |
December 31, | |||||||
2019 | 2018 | ||||||
Accrued payroll and related benefits | $ | 425 | $ | 484 | |||
Content rights payable | 456 | 384 | |||||
Other accrued liabilities | 797 | 736 | |||||
Total accrued liabilities | $ | 1,678 | $ | 1,604 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Accrued payroll and related benefits | $ | 494 | $ | 425 | |||||||
Content rights payable | 528 | 456 | |||||||||
Other accrued liabilities | 771 | 797 | |||||||||
Total accrued liabilities | $ | 1,793 | $ | 1,678 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Foreign currency gains (losses), net | $ | 17 | $ | (93 | ) | $ | (83 | ) | ||||
(Losses) gains on derivative instruments | (52 | ) | 50 | (82 | ) | |||||||
Remeasurement gain on previously held equity interest | 14 | — | 33 | |||||||||
Change in the value of common stock investments with readily determinable fair value (a) | (26 | ) | (88 | ) | — | |||||||
Gain on sale of equity method investments | 13 | — | — | |||||||||
Interest income | 22 | 15 | 21 | |||||||||
Other income (expense), net | 4 | (4 | ) | 1 | ||||||||
Total other expense, net | $ | (8 | ) | $ | (120 | ) | $ | (110 | ) |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Foreign currency (losses) gains, net | $ | (115) | $ | 17 | $ | (93) | ||||||||||||||
Gain on sale of investment with readily determinable fair value | 101 | 0 | 0 | |||||||||||||||||
Gains (losses) on derivatives not designated as hedges | 29 | (52) | 50 | |||||||||||||||||
Change in the value of investments with readily determinable fair value | 28 | (26) | (88) | |||||||||||||||||
Expenses from debt modification | (11) | 0 | 0 | |||||||||||||||||
Interest income | 10 | 22 | 15 | |||||||||||||||||
Gain on sale of equity method investments | 2 | 13 | 0 | |||||||||||||||||
Remeasurement gain on previously held equity interest | 0 | 14 | 0 | |||||||||||||||||
Other (expense) income, net | (2) | 4 | (4) | |||||||||||||||||
Total other income (expense), net | $ | 42 | $ | (8) | $ | (120) |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Cash paid for taxes, net | $ | 641 | $ | 562 | $ | 389 | ||||||||||||||
Cash paid for interest | 673 | 708 | 740 | |||||||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||||||
Receivable from sale of fuboTV Inc. shares | 124 | 0 | 0 | |||||||||||||||||
Equity issued for the acquisition of Scripps Networks | 0 | 0 | 3,218 | |||||||||||||||||
Disposal of UKTV investment and acquisition of Lifestyle Business | 0 | 291 | 0 | |||||||||||||||||
Accrued purchases of property and equipment | 48 | 47 | 39 | |||||||||||||||||
Assets acquired under finance lease and other arrangements | 91 | 38 | 58 | |||||||||||||||||
Equity exchange with Harpo for step acquisition of OWN | 59 | 0 | 0 | |||||||||||||||||
Unsettled stock repurchases | 0 | 4 | 0 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cash paid for taxes, net | $ | 562 | $ | 389 | $ | 274 | ||||||
Cash paid for interest | 708 | 740 | 357 | |||||||||
Non-cash investing and financing activities: | ||||||||||||
Fair value of assets and liabilities of business received in exchange for redeemable noncontrolling interests (a) | — | — | 144 | |||||||||
Equity issued for the acquisition of Scripps Networks | — | 3,218 | — | |||||||||
Disposal of UKTV investment and acquisition of Lifestyle Business | 291 | — | — | |||||||||
Accrued purchases of property and equipment | 47 | 39 | 24 | |||||||||
Assets acquired under finance lease arrangements | 38 | 58 | 103 | |||||||||
Unsettled stock repurchases | 4 | — | — |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,091 | $ | 1,552 | ||||||||||||||||||||||
Restricted cash - other current assets (a) | 31 | 0 | ||||||||||||||||||||||||
Total cash, cash equivalents, and restricted cash | $ | 2,122 | $ | 1,552 | ||||||||||||||||||||||
(a) Restricted cash includes cash posted as collateral related to forward starting interest rate swap contracts that were executed during years ended December 31, 2020 and 2019. (See Note 10.) |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 (a) | 2018 (a) | ||||||||||||||||||
Revenues and service charges: | ||||||||||||||||||||
Liberty Group | $ | 686 | $ | 668 | $ | 640 | ||||||||||||||
Equity method investees | 223 | 210 | 270 | |||||||||||||||||
Other | 103 | 111 | 134 | |||||||||||||||||
Total revenues and service charges | $ | 1,012 | $ | 989 | $ | 1,044 | ||||||||||||||
Interest income | $ | 0 | $ | 1 | $ | 4 | ||||||||||||||
Expenses | $ | (244) | $ | (224) | $ | (257) | ||||||||||||||
Distributions to noncontrolling interests and redeemable noncontrolling interests | $ | (254) | $ | (250) | $ | (76) |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Revenues and service charges: | ||||||||||||
Liberty Group | $ | 666 | $ | 627 | $ | 476 | ||||||
Equity method investees | 304 | 289 | 145 | |||||||||
Other | 57 | 69 | 46 | |||||||||
Total revenues and service charges | $ | 1,027 | $ | 985 | $ | 667 | ||||||
Interest income | $ | 1 | $ | 4 | $ | 13 | ||||||
Expenses | $ | (368 | ) | $ | (321 | ) | $ | (178 | ) |
December 31, | ||||||||||||||
2020 | 2019 (a) | |||||||||||||
Receivables | $ | 177 | $ | 161 | ||||||||||
Payables | 43 | 105 | ||||||||||||
(a) Amounts have been revised to adjust for classification between lines and excluded balances solely within this footnote disclosure. Revised amounts are not material to the previously issued financial statements. |
December 31, | ||||||||
2019 | 2018 | |||||||
Receivables | $ | 156 | $ | 167 | ||||
Note receivable (a) | — | 94 | ||||||
Payables | 18 | 7 |
Year Ending December 31, | Content | Other | Total | |||||||||||||||||
2021 | $ | 1,698 | $ | 576 | $ | 2,274 | ||||||||||||||
2022 | 626 | 345 | 971 | |||||||||||||||||
2023 | 479 | 222 | 701 | |||||||||||||||||
2024 | 777 | 53 | 830 | |||||||||||||||||
2025 | 336 | 32 | 368 | |||||||||||||||||
Thereafter | 1,137 | 69 | 1,206 | |||||||||||||||||
Total | $ | 5,053 | $ | 1,297 | $ | 6,350 |
Year Ending December 31, | Content | Other | Total | |||||||||
2020 | $ | 1,633 | $ | 478 | $ | 2,111 | ||||||
2021 | 552 | 386 | 938 | |||||||||
2022 | 505 | 266 | 771 | |||||||||
2023 | 430 | 191 | 621 | |||||||||
2024 | 727 | 27 | 754 | |||||||||
Thereafter | 1,383 | 66 | 1,449 | |||||||||
Total | $ | 5,230 | $ | 1,414 | $ | 6,644 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
U.S. Networks | $ | 7,092 | $ | 6,350 | $ | 3,434 | ||||||
International Networks | 4,041 | 4,149 | 3,281 | |||||||||
Other | 11 | 54 | 158 | |||||||||
Corporate and inter-segment eliminations | — | — | — | |||||||||
Total revenues | $ | 11,144 | $ | 10,553 | $ | 6,873 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
U.S. Networks | $ | 6,949 | $ | 7,092 | $ | 6,350 | ||||||||||||||
International Networks | 3,713 | 4,041 | 4,149 | |||||||||||||||||
Corporate, inter-segment eliminations, and other | 9 | 11 | 54 | |||||||||||||||||
Total revenues | $ | 10,671 | $ | 11,144 | $ | 10,553 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
U.S. Networks | $ | 4,117 | $ | 3,500 | $ | 2,026 | ||||||
International Networks | 1,057 | 1,077 | 859 | |||||||||
Other | 4 | 3 | 6 | |||||||||
Corporate and inter-segment eliminations | (507 | ) | (392 | ) | (324 | ) | ||||||
Total Adjusted OIBDA | $ | 4,671 | $ | 4,188 | $ | 2,567 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net income (loss) available to Discovery, Inc. | $ | 2,069 | $ | 594 | $ | (337 | ) | |||||
Net income attributable to redeemable noncontrolling interests | 16 | 20 | 24 | |||||||||
Net income attributable to noncontrolling interests | 128 | 67 | — | |||||||||
Income tax expense | 81 | 341 | 176 | |||||||||
Income (loss) before income taxes | 2,294 | 1,022 | (137 | ) | ||||||||
Other expense (income), net | 8 | 120 | 110 | |||||||||
Loss from equity investees, net | 2 | 63 | 211 | |||||||||
Loss on extinguishment of debt | 28 | — | 54 | |||||||||
Interest expense, net | 677 | 729 | 475 | |||||||||
Operating income | 3,009 | 1,934 | 713 | |||||||||
(Gain) loss on disposition | — | (84 | ) | 4 | ||||||||
Restructuring and other charges | 26 | 750 | 75 | |||||||||
Impairment of goodwill | 155 | — | 1,327 | |||||||||
Depreciation and amortization | 1,347 | 1,398 | 330 | |||||||||
Employee share-based compensation | 137 | 80 | 39 | |||||||||
Transaction and integration costs | 26 | 110 | 79 | |||||||||
Settlement of a withholding tax claim | (29 | ) | — | — | ||||||||
Total Adjusted OIBDA | $ | 4,671 | $ | 4,188 | $ | 2,567 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Net income available to Discovery, Inc. | $ | 1,219 | $ | 2,069 | $ | 594 | ||||||||||||||
Net income attributable to redeemable noncontrolling interests | 12 | 16 | 20 | |||||||||||||||||
Net income attributable to noncontrolling interests | 124 | 128 | 67 | |||||||||||||||||
Income tax expense | 373 | 81 | 341 | |||||||||||||||||
Income before income taxes | 1,728 | 2,294 | 1,022 | |||||||||||||||||
Other (income) expense, net | (42) | 8 | 120 | |||||||||||||||||
Loss from equity investees, net | 105 | 2 | 63 | |||||||||||||||||
Loss on extinguishment of debt | 76 | 28 | 0 | |||||||||||||||||
Interest expense, net | 648 | 677 | 729 | |||||||||||||||||
Operating income | 2,515 | 3,009 | 1,934 | |||||||||||||||||
Depreciation and amortization | 1,359 | 1,347 | 1,398 | |||||||||||||||||
Impairment of goodwill and other intangible assets | 124 | 155 | 0 | |||||||||||||||||
Employee share-based compensation | 99 | 137 | 80 | |||||||||||||||||
Restructuring and other charges | 91 | 26 | 750 | |||||||||||||||||
Transaction and integration costs | 6 | 26 | 110 | |||||||||||||||||
Loss (gain) on disposition | 2 | 0 | (84) | |||||||||||||||||
Settlement of a withholding tax claim | 0 | (29) | 0 | |||||||||||||||||
Adjusted OIBDA | $ | 4,196 | $ | 4,671 | $ | 4,188 |
December 31, | ||||||||
2019 | 2018 | |||||||
U.S. Networks | $ | 18,156 | $ | 18,683 | ||||
International Networks | 8,145 | 7,208 | ||||||
Other | 204 | 227 | ||||||
Corporate and inter-segment eliminations | 7,230 | 6,432 | ||||||
Total assets | $ | 33,735 | $ | 32,550 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
U.S. Networks | $ | 3,975 | $ | 4,117 | $ | 3,500 | ||||||||||||||
International Networks | 723 | 1,057 | 1,077 | |||||||||||||||||
Corporate, inter-segment eliminations, and other | (502) | (503) | (389) | |||||||||||||||||
Adjusted OIBDA | $ | 4,196 | $ | 4,671 | $ | 4,188 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
U.S. Networks | $ | 1,647 | $ | 1,548 | $ | 1,702 | ||||||||||||||
International Networks | 1,307 | 1,303 | 1,584 | |||||||||||||||||
Corporate, inter-segment eliminations, and other | 2 | 2 | 2 | |||||||||||||||||
Total content amortization and impairment expense | $ | 2,956 | $ | 2,853 | $ | 3,288 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
U.S. Networks | $ | 1,548 | $ | 1,702 | $ | 776 | ||||||
International Networks | 1,303 | 1,584 | 1,126 | |||||||||
Other | 2 | 2 | 8 | |||||||||
Total content amortization and impairment expense | $ | 2,853 | $ | 3,288 | $ | 1,910 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
U.S. | $ | 7,025 | $ | 7,152 | $ | 6,415 | ||||||||||||||
Non-U.S. | 3,646 | 3,992 | 4,138 | |||||||||||||||||
Total revenues | $ | 10,671 | $ | 11,144 | $ | 10,553 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
U.S. | $ | 7,152 | $ | 6,415 | $ | 3,560 | ||||||
Non-U.S. | 3,992 | 4,138 | 3,313 | |||||||||
Total revenues | $ | 11,144 | $ | 10,553 | $ | 6,873 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
U.S. | $ | 645 | $ | 432 | ||||||||||
Poland | 180 | 184 | ||||||||||||
U.K. | 149 | 157 | ||||||||||||
Other non-U.S. | 232 | 178 | ||||||||||||
Total property and equipment, net | $ | 1,206 | $ | 951 |
December 31, | ||||||||
2019 | 2018 | |||||||
U.S. | $ | 432 | $ | 350 | ||||
Poland | 184 | 185 | ||||||
U.K. | 157 | 160 | ||||||
Other non-U.S. | 178 | 105 | ||||||
Total property and equipment, net | $ | 951 | $ | 800 |
2019 (a) (b) | ||||||||||||||||
1st quarter | 2nd quarter | 3rd quarter | 4th quarter | |||||||||||||
Revenues | $ | 2,707 | $ | 2,885 | $ | 2,678 | $ | 2,874 | ||||||||
Operating income | $ | 774 | $ | 911 | $ | 619 | $ | 705 | ||||||||
Net income | $ | 418 | $ | 987 | $ | 297 | $ | 511 | ||||||||
Net income (loss) available to Discovery, Inc. | $ | 384 | $ | 947 | $ | 262 | $ | 476 | ||||||||
Earnings (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||
Basic | $ | 0.53 | $ | 1.33 | $ | 0.35 | $ | 0.68 | ||||||||
Diluted | $ | 0.53 | $ | 1.33 | $ | 0.35 | $ | 0.67 | ||||||||
2018 (a) (c) | ||||||||||||||||
1st quarter | 2nd quarter | 3rd quarter | 4th quarter | |||||||||||||
Revenues | $ | 2,307 | $ | 2,845 | $ | 2,592 | $ | 2,809 | ||||||||
Operating income (loss) | $ | 204 | $ | 650 | $ | 369 | $ | 711 | ||||||||
Net income (loss) | $ | 3 | $ | 244 | $ | 135 | $ | 299 | ||||||||
Net (loss) income available to Discovery, Inc. | $ | (8 | ) | $ | 216 | $ | 117 | $ | 269 | |||||||
Earnings (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||
Basic | $ | (0.01 | ) | $ | 0.30 | $ | 0.16 | $ | 0.38 | |||||||
Diluted | $ | (0.01 | ) | $ | 0.30 | $ | 0.16 | $ | 0.38 |
Discovery | Scripps Networks | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 60 | $ | — | $ | 801 | $ | 396 | $ | 295 | $ | — | $ | 1,552 | ||||||||||||||||
Receivables, net | — | — | — | 456 | 1,372 | 805 | — | 2,633 | ||||||||||||||||||||||||
Content rights, net | — | — | — | 3 | 539 | 37 | — | 579 | ||||||||||||||||||||||||
Prepaid expenses and other current assets | 3 | 4 | 20 | 72 | 212 | 142 | — | 453 | ||||||||||||||||||||||||
Intercompany trade receivables, net | — | 34 | — | 324 | — | — | (358 | ) | — | |||||||||||||||||||||||
Total current assets | 3 | 98 | 20 | 1,656 | 2,519 | 1,279 | (358 | ) | 5,217 | |||||||||||||||||||||||
Investment in and advances to subsidiaries | 9,891 | 12,548 | — | 6,811 | — | — | (29,250 | ) | — | |||||||||||||||||||||||
Noncurrent content rights, net | — | — | — | 760 | 1,357 | 1,012 | — | 3,129 | ||||||||||||||||||||||||
Goodwill | — | — | — | 3,678 | 3,183 | 6,189 | — | 13,050 | ||||||||||||||||||||||||
Intangible assets, net | — | — | — | 230 | 1,117 | 7,320 | — | 8,667 | ||||||||||||||||||||||||
Equity method investments | — | — | — | 14 | 317 | 237 | — | 568 | ||||||||||||||||||||||||
Other noncurrent assets, including property and equipment, net | — | 51 | 21 | 1,133 | 1,372 | 547 | (20 | ) | 3,104 | |||||||||||||||||||||||
Total assets | $ | 9,894 | $ | 12,697 | $ | 41 | $ | 14,282 | $ | 9,865 | $ | 16,584 | $ | (29,628 | ) | $ | 33,735 | |||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||
Current portion of debt | $ | — | $ | 58 | $ | — | $ | 541 | $ | 10 | $ | — | $ | — | $ | 609 | ||||||||||||||||
Other current liabilities | — | 7 | — | 547 | 1,482 | 594 | — | 2,630 | ||||||||||||||||||||||||
Intercompany trade payables, net | — | — | — | — | 324 | 34 | (358 | ) | — | |||||||||||||||||||||||
Total current liabilities | — | 65 | — | 1,088 | 1,816 | 628 | (358 | ) | 3,239 | |||||||||||||||||||||||
Noncurrent portion of debt | — | 77 | — | 14,733 | — | — | — | 14,810 | ||||||||||||||||||||||||
Negative carrying amount in subsidiaries, net | — | — | 2,739 | — | — | 1,799 | (4,538 | ) | — | |||||||||||||||||||||||
Other noncurrent liabilities | 3 | 69 | — | 1,200 | 795 | 1,674 | (21 | ) | 3,720 | |||||||||||||||||||||||
Total liabilities | 3 | 211 | 2,739 | 17,021 | 2,611 | 4,101 | (4,917 | ) | 21,769 | |||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | — | — | 442 | — | — | 442 | ||||||||||||||||||||||||
Total Discovery, Inc. stockholders’ equity (deficit) | 9,891 | 12,486 | (2,698 | ) | (2,739 | ) | 6,812 | 12,483 | (26,344 | ) | 9,891 | |||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | — | 1,633 | 1,633 | ||||||||||||||||||||||||
Total equity (deficit) | 9,891 | 12,486 | (2,698 | ) | (2,739 | ) | 6,812 | 12,483 | (24,711 | ) | 11,524 | |||||||||||||||||||||
Total liabilities and equity | $ | 9,894 | $ | 12,697 | $ | 41 | $ | 14,282 | $ | 9,865 | $ | 16,584 | $ | (29,628 | ) | $ | 33,735 |
Discovery | Scripps Networks | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 315 | $ | — | $ | 61 | $ | 475 | $ | 135 | $ | — | $ | 986 | ||||||||||||||||
Receivables, net | — | — | — | 405 | 1,305 | 910 | — | 2,620 | ||||||||||||||||||||||||
Content rights, net | — | — | — | 1 | 250 | 62 | — | 313 | ||||||||||||||||||||||||
Prepaid expenses and other current assets | 21 | 18 | 22 | 49 | 134 | 68 | — | 312 | ||||||||||||||||||||||||
Intercompany trade receivables, net | — | — | — | 151 | — | — | (151 | ) | — | |||||||||||||||||||||||
Total current assets | 21 | 333 | 22 | 667 | 2,164 | 1,175 | (151 | ) | 4,231 | |||||||||||||||||||||||
Investment in and advances to subsidiaries | 8,367 | 13,248 | — | 6,290 | — | — | (27,905 | ) | — | |||||||||||||||||||||||
Noncurrent content rights, net | — | — | — | 607 | 1,501 | 961 | — | 3,069 | ||||||||||||||||||||||||
Goodwill | — | — | — | 3,678 | 3,298 | 6,030 | — | 13,006 | ||||||||||||||||||||||||
Intangible assets, net | — | — | — | 246 | 1,261 | 8,167 | — | 9,674 | ||||||||||||||||||||||||
Equity method investments, including note receivable | — | 94 | — | 23 | 291 | 527 | — | 935 | ||||||||||||||||||||||||
Other noncurrent assets, including property and equipment, net | — | 35 | 20 | 537 | 607 | 456 | (20 | ) | 1,635 | |||||||||||||||||||||||
Total assets | $ | 8,388 | $ | 13,710 | $ | 42 | $ | 12,048 | $ | 9,122 | $ | 17,316 | $ | (28,076 | ) | $ | 32,550 | |||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||
Current portion of debt | $ | — | $ | 106 | $ | — | $ | 1,701 | $ | 12 | $ | — | $ | — | $ | 1,819 | ||||||||||||||||
Other current liabilities | — | 30 | — | 402 | 1,266 | 480 | — | 2,178 | ||||||||||||||||||||||||
Intercompany trade payables, net | — | — | — | — | 151 | — | (151 | ) | — | |||||||||||||||||||||||
Total current liabilities | — | 136 | — | 2,103 | 1,429 | 480 | (151 | ) | 3,997 | |||||||||||||||||||||||
Noncurrent portion of debt | — | 134 | — | 14,606 | 234 | — | — | 14,974 | ||||||||||||||||||||||||
Negative carrying amount in subsidiaries, net | — | — | 5,183 | — | — | 3,427 | (8,610 | ) | — | |||||||||||||||||||||||
Other noncurrent liabilities | 2 | 56 | — | 522 | 754 | 1,748 | (20 | ) | 3,062 | |||||||||||||||||||||||
Total liabilities | 2 | 326 | 5,183 | 17,231 | 2,417 | 5,655 | (8,781 | ) | 22,033 | |||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | — | — | 415 | — | — | 415 | ||||||||||||||||||||||||
Total Discovery, Inc. stockholders’ equity (deficit) | 8,386 | 13,384 | (5,141 | ) | (5,183 | ) | 6,290 | 11,661 | (21,011 | ) | 8,386 | |||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | — | 1,716 | 1,716 | ||||||||||||||||||||||||
Total equity (deficit) | 8,386 | 13,384 | (5,141 | ) | (5,183 | ) | 6,290 | 11,661 | (19,295 | ) | 10,102 | |||||||||||||||||||||
Total liabilities and equity | $ | 8,388 | $ | 13,710 | $ | 42 | $ | 12,048 | $ | 9,122 | $ | 17,316 | $ | (28,076 | ) | $ | 32,550 |
Discovery | Scripps Networks | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | |||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 2,086 | $ | 5,377 | $ | 3,713 | $ | (32 | ) | $ | 11,144 | |||||||||||||||
Costs of revenues, excluding depreciation and amortization | — | — | — | 437 | 2,368 | 1,031 | (17 | ) | 3,819 | |||||||||||||||||||||||
Selling, general and administrative | 24 | — | — | 387 | 1,838 | 554 | (15 | ) | 2,788 | |||||||||||||||||||||||
Depreciation and amortization | — | — | — | 48 | 320 | 979 | — | 1,347 | ||||||||||||||||||||||||
Impairment of goodwill | — | — | — | — | 155 | — | — | 155 | ||||||||||||||||||||||||
Restructuring and other charges | — | — | — | 6 | 20 | — | — | 26 | ||||||||||||||||||||||||
Total costs and expenses | 24 | — | — | 878 | 4,701 | 2,564 | (32 | ) | 8,135 | |||||||||||||||||||||||
Operating (loss) income | (24 | ) | — | — | 1,208 | 676 | 1,149 | — | 3,009 | |||||||||||||||||||||||
Equity in earnings (loss) of subsidiaries | 2,087 | 923 | 1,255 | 906 | — | 837 | (6,008 | ) | — | |||||||||||||||||||||||
Interest (expense), net | — | (6 | ) | — | (678 | ) | 8 | (1 | ) | — | (677 | ) | ||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (28 | ) | — | — | — | (28 | ) | ||||||||||||||||||||||
Loss (income) from equity investees, net | — | — | — | — | (27 | ) | 25 | — | (2 | ) | ||||||||||||||||||||||
Other income (expense), net | — | (2 | ) | — | (21 | ) | — | 15 | — | (8 | ) | |||||||||||||||||||||
Income before income taxes | 2,063 | 915 | 1,255 | 1,387 | 657 | 2,025 | (6,008 | ) | 2,294 | |||||||||||||||||||||||
Income tax benefit (expense) | 6 | 2 | — | (132 | ) | 266 | (223 | ) | — | (81 | ) | |||||||||||||||||||||
Net income | 2,069 | 917 | 1,255 | 1,255 | 923 | 1,802 | (6,008 | ) | 2,213 | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | (128 | ) | (128 | ) | ||||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | — | — | — | (16 | ) | (16 | ) | ||||||||||||||||||||||
Net income available to Discovery, Inc. | $ | 2,069 | $ | 917 | $ | 1,255 | $ | 1,255 | $ | 923 | $ | 1,802 | $ | (6,152 | ) | $ | 2,069 |
Discovery | Scripps Networks | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | |||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 1,950 | $ | 5,597 | $ | 3,047 | $ | (41 | ) | $ | 10,553 | |||||||||||||||
Costs of revenues, excluding depreciation and amortization | — | — | — | 445 | 2,558 | 956 | (24 | ) | 3,935 | |||||||||||||||||||||||
Selling, general and administrative | 41 | — | — | 315 | 1,694 | 587 | (17 | ) | 2,620 | |||||||||||||||||||||||
Depreciation and amortization | — | 1 | — | 53 | 365 | 979 | — | 1,398 | ||||||||||||||||||||||||
Restructuring and other charges | 8 | — | — | 118 | 407 | 217 | — | 750 | ||||||||||||||||||||||||
Gain on disposition | — | — | — | — | (84 | ) | — | — | (84 | ) | ||||||||||||||||||||||
Total costs and expenses | 49 | 1 | — | 931 | 4,940 | 2,739 | (41 | ) | 8,619 | |||||||||||||||||||||||
Operating (loss) income | (49 | ) | (1 | ) | — | 1,019 | 657 | 308 | — | 1,934 | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 637 | 198 | 473 | 209 | — | 315 | (1,832 | ) | — | |||||||||||||||||||||||
Interest expense, net | — | (6 | ) | — | (693 | ) | (29 | ) | (1 | ) | — | (729 | ) | |||||||||||||||||||
Income (loss) from equity investees, net | — | — | — | 4 | (91 | ) | 24 | — | (63 | ) | ||||||||||||||||||||||
Other (expense) income, net | (5 | ) | 12 | — | 71 | (145 | ) | (53 | ) | — | (120 | ) | ||||||||||||||||||||
Income before income taxes | 583 | 203 | 473 | 610 | 392 | 593 | (1,832 | ) | 1,022 | |||||||||||||||||||||||
Income tax benefit (expense) | 11 | — | — | (137 | ) | (163 | ) | (52 | ) | — | (341 | ) | ||||||||||||||||||||
Net income | 594 | 203 | 473 | 473 | 229 | 541 | (1,832 | ) | 681 | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | (67 | ) | (67 | ) | ||||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | — | — | — | (20 | ) | (20 | ) | ||||||||||||||||||||||
Net loss available to Discovery, Inc. | $ | 594 | $ | 203 | $ | 473 | $ | 473 | $ | 229 | $ | 541 | $ | (1,919 | ) | $ | 594 |
Discovery | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 1,988 | $ | 4,897 | $ | — | $ | (12 | ) | $ | 6,873 | |||||||||||||
Costs of revenues, excluding depreciation and amortization | — | — | 467 | 2,191 | — | (2 | ) | 2,656 | ||||||||||||||||||||
Selling, general and administrative | 53 | — | 309 | 1,416 | — | (10 | ) | 1,768 | ||||||||||||||||||||
Depreciation and amortization | — | — | 42 | 288 | — | — | 330 | |||||||||||||||||||||
Impairment of goodwill | — | — | — | 1,327 | — | — | 1,327 | |||||||||||||||||||||
Restructuring and other charges | — | — | 35 | 40 | — | — | 75 | |||||||||||||||||||||
Loss on disposition | — | — | — | 4 | — | — | 4 | |||||||||||||||||||||
Total costs and expenses | 53 | — | 853 | 5,266 | — | (12 | ) | 6,160 | ||||||||||||||||||||
Operating (loss) income | (53 | ) | — | 1,135 | (369 | ) | — | — | 713 | |||||||||||||||||||
Equity in earnings of subsidiaries | (288 | ) | (288 | ) | (541 | ) | — | (192 | ) | 1,309 | — | |||||||||||||||||
Interest expense, net | — | — | (448 | ) | (27 | ) | — | — | (475 | ) | ||||||||||||||||||
Loss on extinguishment of debt | — | — | (54 | ) | — | — | — | (54 | ) | |||||||||||||||||||
Loss from equity method investees, net | — | — | (3 | ) | (208 | ) | — | — | (211 | ) | ||||||||||||||||||
Other (expense) income, net | — | — | (204 | ) | 94 | — | — | (110 | ) | |||||||||||||||||||
Loss before income taxes | (341 | ) | (288 | ) | (115 | ) | (510 | ) | (192 | ) | 1,309 | (137 | ) | |||||||||||||||
Income tax benefit (expense) | 4 | — | (173 | ) | (7 | ) | — | — | (176 | ) | ||||||||||||||||||
Net loss | (337 | ) | (288 | ) | (288 | ) | (517 | ) | (192 | ) | 1,309 | (313 | ) | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | — | — | (24 | ) | (24 | ) | |||||||||||||||||||
Net loss available to Discovery, Inc. | $ | (337 | ) | $ | (288 | ) | $ | (288 | ) | $ | (517 | ) | $ | (192 | ) | $ | 1,285 | $ | (337 | ) |
Discovery | Scripps Networks | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | |||||||||||||||||||||||||
Net income | $ | 2,069 | $ | 917 | $ | 1,255 | $ | 1,255 | $ | 923 | $ | 1,802 | $ | (6,008 | ) | $ | 2,213 | |||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||
Currency translation | (15 | ) | 5 | (20 | ) | (20 | ) | (7 | ) | (8 | ) | 50 | (15 | ) | ||||||||||||||||||
Pension and SERP | (10 | ) | (10 | ) | — | — | — | (10 | ) | 20 | (10 | ) | ||||||||||||||||||||
Derivatives | 18 | — | 18 | 18 | 18 | 12 | (66 | ) | 18 | |||||||||||||||||||||||
Comprehensive income | 2,062 | 912 | 1,253 | 1,253 | 934 | 1,796 | (6,004 | ) | 2,206 | |||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | — | — | — | (128 | ) | (128 | ) | ||||||||||||||||||||||
Comprehensive income attributable to redeemable noncontrolling interests | — | — | — | — | — | — | (17 | ) | (17 | ) | ||||||||||||||||||||||
Comprehensive income attributable to Discovery, Inc. | $ | 2,062 | $ | 912 | $ | 1,253 | $ | 1,253 | $ | 934 | $ | 1,796 | $ | (6,149 | ) | $ | 2,061 |
Discovery | Scripps Networks | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | |||||||||||||||||||||||||
Net income | $ | 594 | $ | 203 | $ | 473 | $ | 473 | $ | 229 | $ | 541 | $ | (1,832 | ) | $ | 681 | |||||||||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||||||||||||||
Currency translation | (189 | ) | (204 | ) | 15 | 15 | (15 | ) | (194 | ) | 383 | (189 | ) | |||||||||||||||||||
Pension and SERP | 3 | 3 | — | — | — | — | (3 | ) | 3 | |||||||||||||||||||||||
Derivatives | 12 | — | 12 | 12 | 12 | 8 | (44 | ) | 12 | |||||||||||||||||||||||
Comprehensive income | 420 | 2 | 500 | 500 | 226 | 355 | (1,496 | ) | 507 | |||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | — | — | — | (67 | ) | (67 | ) | ||||||||||||||||||||||
Comprehensive income attributable to redeemable noncontrolling interests | — | — | — | — | — | — | (20 | ) | (20 | ) | ||||||||||||||||||||||
Comprehensive income attributable to Discovery, Inc. | $ | 420 | $ | 2 | $ | 500 | $ | 500 | $ | 226 | $ | 355 | $ | (1,583 | ) | $ | 420 |
Discovery | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | ||||||||||||||||||||||
Net loss | $ | (337 | ) | $ | (288 | ) | $ | (288 | ) | $ | (517 | ) | $ | (192 | ) | $ | 1,309 | $ | (313 | ) | ||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||||||||||
Currency translation | 183 | 183 | 183 | 186 | 122 | (674 | ) | 183 | ||||||||||||||||||||
Available-for-sale securities | 15 | 15 | 15 | 15 | 10 | (55 | ) | 15 | ||||||||||||||||||||
Derivatives | (20 | ) | (20 | ) | (20 | ) | (9 | ) | (13 | ) | 62 | (20 | ) | |||||||||||||||
Comprehensive loss | (159 | ) | (110 | ) | (110 | ) | (325 | ) | (73 | ) | 642 | (135 | ) | |||||||||||||||
Comprehensive income attributable to redeemable noncontrolling interests | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (20 | ) | (25 | ) | ||||||||||||||
Comprehensive loss attributable to Discovery, Inc. | $ | (160 | ) | $ | (111 | ) | $ | (111 | ) | $ | (326 | ) | $ | (74 | ) | $ | 622 | $ | (160 | ) |
Discovery | Scripps Networks | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | |||||||||||||||||||||||||
Operating Activities | ||||||||||||||||||||||||||||||||
Cash provided by (used in) operating activities | $ | — | $ | (30 | ) | $ | — | $ | 205 | $ | 1,476 | $ | 1,748 | $ | — | $ | 3,399 | |||||||||||||||
Investing Activities | ||||||||||||||||||||||||||||||||
Business acquisitions, net of cash acquired | — | — | — | — | (73 | ) | — | — | (73 | ) | ||||||||||||||||||||||
Investments in and advances to equity investments | — | — | — | (83 | ) | (145 | ) | (26 | ) | — | (254 | ) | ||||||||||||||||||||
Proceeds from dissolution of joint venture and sale of investments | — | 60 | — | — | 7 | 58 | — | 125 | ||||||||||||||||||||||||
Purchases of property and equipment | — | — | — | (38 | ) | (199 | ) | (52 | ) | — | (289 | ) | ||||||||||||||||||||
Proceeds from derivative instruments, net | — | — | — | — | 54 | — | — | 54 | ||||||||||||||||||||||||
Intercompany distributions and other investing activities, net | — | — | — | 92 | (5 | ) | 4 | (92 | ) | (1 | ) | |||||||||||||||||||||
Cash (used in) provided by investing activities | — | 60 | — | (29 | ) | (361 | ) | (16 | ) | (92 | ) | (438 | ) | |||||||||||||||||||
Financing Activities | ||||||||||||||||||||||||||||||||
Principal repayments of revolving credit facility | — | — | — | — | (225 | ) | — | — | (225 | ) | ||||||||||||||||||||||
Borrowings from debt, net of discount and including premiums | — | — | — | 1,479 | — | — | — | 1,479 | ||||||||||||||||||||||||
Principal repayments of debt, including discount payment and premiums to par value | — | (107 | ) | — | (2,551 | ) | — | — | — | (2,658 | ) | |||||||||||||||||||||
Principal repayments of finance lease obligations | — | — | — | (7 | ) | (34 | ) | (3 | ) | — | (44 | ) | ||||||||||||||||||||
Repurchases of stock | (633 | ) | — | — | — | — | — | — | (633 | ) | ||||||||||||||||||||||
Distributions to noncontrolling interests and redeemable noncontrolling interests | — | — | — | — | (39 | ) | (211 | ) | — | (250 | ) | |||||||||||||||||||||
Share-based plan payments, net | (2 | ) | — | — | — | — | — | — | (2 | ) | ||||||||||||||||||||||
Repayments under program financing line of credit, net | — | — | — | — | (12 | ) | — | — | (12 | ) | ||||||||||||||||||||||
Hedge of borrowings from debt instruments | — | — | — | — | (18 | ) | — | — | (18 | ) | ||||||||||||||||||||||
Intercompany contributions (distributions) and other financing activities, net | 635 | (178 | ) | — | 1,643 | (827 | ) | (1,359 | ) | 92 | 6 | |||||||||||||||||||||
Cash used in (provided by) financing activities | — | (285 | ) | — | 564 | (1,155 | ) | (1,573 | ) | 92 | (2,357 | ) | ||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | — | (39 | ) | 1 | — | (38 | ) | ||||||||||||||||||||||
Net change in cash and cash equivalents | — | (255 | ) | — | 740 | (79 | ) | 160 | — | 566 | ||||||||||||||||||||||
Cash and cash equivalents, beginning of period | — | 315 | — | 61 | 475 | 135 | — | 986 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 60 | $ | — | $ | 801 | $ | 396 | $ | 295 | $ | — | $ | 1,552 |
Discovery | Scripps Networks | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | |||||||||||||||||||||||||
Operating Activities | ||||||||||||||||||||||||||||||||
Cash (used in) provided by operating activities | $ | (15 | ) | $ | (85 | ) | $ | 11 | $ | (111 | ) | $ | 1,543 | $ | 1,233 | $ | — | $ | 2,576 | |||||||||||||
Investing Activities | ||||||||||||||||||||||||||||||||
Purchases of property and equipment | — | — | — | (24 | ) | (94 | ) | (29 | ) | — | (147 | ) | ||||||||||||||||||||
(Payments) receipts for investments, net | — | — | — | (10 | ) | (59 | ) | 8 | — | (61 | ) | |||||||||||||||||||||
Business (acquisitions) dispositions, net of cash acquired | (8,714 | ) | 54 | — | — | — | 95 | — | (8,565 | ) | ||||||||||||||||||||||
Payments for derivative instruments, net | — | — | — | — | (2 | ) | — | — | (2 | ) | ||||||||||||||||||||||
Proceeds from dispositions, net of cash disposed | — | — | — | — | 107 | — | — | 107 | ||||||||||||||||||||||||
Distributions from equity method investees | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||||||
Proceeds from sale of assets | — | — | — | — | 68 | — | — | 68 | ||||||||||||||||||||||||
Intercompany distributions, and other investing activities, net | — | 11 | — | 12 | 4 | (9 | ) | (12 | ) | 6 | ||||||||||||||||||||||
Cash (used in) provided by investing activities | (8,714 | ) | 65 | — | (22 | ) | 25 | 65 | (12 | ) | (8,593 | ) | ||||||||||||||||||||
Financing Activities | ||||||||||||||||||||||||||||||||
Commercial paper repayments, net | — | — | — | (5 | ) | — | — | — | (5 | ) | ||||||||||||||||||||||
Principal repayments of revolving credit facility | — | — | — | — | (200 | ) | — | — | (200 | ) | ||||||||||||||||||||||
Borrowings under term loan facilities | — | — | — | 2,000 | — | — | — | 2,000 | ||||||||||||||||||||||||
Principal repayments of term loans | — | — | — | (2,000 | ) | — | — | — | (2,000 | ) | ||||||||||||||||||||||
Principal repayments of long term debt | — | — | — | (16 | ) | — | — | — | (16 | ) | ||||||||||||||||||||||
Principal repayments of capital lease obligations | — | — | — | (10 | ) | (28 | ) | (12 | ) | — | (50 | ) | ||||||||||||||||||||
Distributions to noncontrolling interests and redeemable noncontrolling interests | — | — | — | — | (26 | ) | (50 | ) | — | (76 | ) | |||||||||||||||||||||
Share-based plan proceeds, net | 51 | — | — | — | 3 | — | — | 54 | ||||||||||||||||||||||||
Borrowings under program financing line of credit | — | — | — | 22 | — | — | — | 22 | ||||||||||||||||||||||||
Intercompany contributions and other financing activities, net | 8,678 | 335 | (11 | ) | (6,597 | ) | (1,336 | ) | (1,093 | ) | 12 | (12 | ) | |||||||||||||||||||
Cash provided by (used in) financing activities | 8,729 | 335 | (11 | ) | (6,606 | ) | (1,587 | ) | (1,155 | ) | 12 | (283 | ) | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | — | (15 | ) | (8 | ) | — | (23 | ) | |||||||||||||||||||||
Net change in cash and cash equivalents | — | 315 | — | (6,739 | ) | (34 | ) | 135 | — | (6,323 | ) | |||||||||||||||||||||
Cash and cash equivalents, beginning of period | — | — | — | 6,800 | 509 | — | — | 7,309 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 315 | $ | — | $ | 61 | $ | 475 | $ | 135 | $ | — | $ | 986 |
Discovery | DCH | DCL | Non-Guarantor Subsidiaries of DCL | Other Non- Guarantor Subsidiaries of Discovery | Reclassifications and Eliminations | Discovery and Subsidiaries | ||||||||||||||||||||||
Operating Activities | ||||||||||||||||||||||||||||
Cash (used in) provided by operating activities | $ | (3 | ) | $ | 3 | $ | 476 | $ | 1,153 | $ | — | $ | — | $ | 1,629 | |||||||||||||
Investing Activities | ||||||||||||||||||||||||||||
Business acquisitions, net of cash acquired | — | — | — | (60 | ) | — | — | (60 | ) | |||||||||||||||||||
Payments for investments, net | — | — | (45 | ) | (399 | ) | — | — | (444 | ) | ||||||||||||||||||
Proceeds from dispositions, net of cash disposed | — | — | — | 29 | — | — | 29 | |||||||||||||||||||||
Purchases of property and equipment | — | — | (43 | ) | (92 | ) | — | — | (135 | ) | ||||||||||||||||||
Distributions from equity method investees | — | — | — | 77 | — | — | 77 | |||||||||||||||||||||
Payments (receipts) for derivative instruments, net | — | — | (111 | ) | 10 | — | — | (101 | ) | |||||||||||||||||||
Other investing activities, net | — | — | (1 | ) | 2 | — | — | 1 | ||||||||||||||||||||
Intercompany contributions (distributions) | — | — | 42 | — | — | (42 | ) | — | ||||||||||||||||||||
Cash used in investing activities | — | — | (158 | ) | (433 | ) | — | (42 | ) | (633 | ) | |||||||||||||||||
Financing Activities | ||||||||||||||||||||||||||||
Commercial paper repayments, net | — | — | (48 | ) | — | — | — | (48 | ) | |||||||||||||||||||
Borrowings under revolving credit facility | — | — | 350 | — | — | — | 350 | |||||||||||||||||||||
Principal repayments of revolving credit facility | — | — | (475 | ) | — | — | — | (475 | ) | |||||||||||||||||||
Borrowings from debt, net of discount and including premiums to par value | — | — | 7,488 | — | — | — | 7,488 | |||||||||||||||||||||
Principal repayments of debt, including discount payment and premiums to par value | — | — | (650 | ) | — | — | — | (650 | ) | |||||||||||||||||||
Payments for bridge financing commitment fees | — | — | (40 | ) | — | — | — | (40 | ) | |||||||||||||||||||
Principal repayments of capital lease obligations | — | — | (7 | ) | (26 | ) | — | — | (33 | ) | ||||||||||||||||||
Repurchases of stock | (603 | ) | — | — | — | — | — | (603 | ) | |||||||||||||||||||
Cash settlement of common stock repurchase contracts | 58 | — | — | — | — | — | 58 | |||||||||||||||||||||
Distributions to redeemable noncontrolling interests | — | — | — | (30 | ) | — | — | (30 | ) | |||||||||||||||||||
Share-based plan proceeds, net | 16 | — | — | — | — | — | 16 | |||||||||||||||||||||
Intercompany distributions | — | — | — | (42 | ) | — | 42 | — | ||||||||||||||||||||
Intercompany contributions and other financing activities, net | 532 | (3 | ) | (156 | ) | (455 | ) | — | — | (82 | ) | |||||||||||||||||
Cash provided by (used in) financing activities | 3 | (3 | ) | 6,462 | (553 | ) | — | 42 | 5,951 | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 62 | — | — | 62 | |||||||||||||||||||||
Net change in cash and cash equivalents | — | — | 6,780 | 229 | — | — | 7,009 | |||||||||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 20 | 280 | — | — | 300 | |||||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 6,800 | $ | 509 | $ | — | $ | — | $ | 7,309 |
Page | |||||
Beginning of Year | Additions | Write-offs | End of Year | |||||||||||
2019 | ||||||||||||||
Allowance for doubtful accounts | $ | 46 | 15 | (7 | ) | $ | 54 | |||||||
Deferred tax valuation allowance | $ | 336 | 37 | (66 | ) | $ | 307 | |||||||
2018 | ||||||||||||||
Allowance for doubtful accounts | $ | 55 | 6 | (15 | ) | $ | 46 | |||||||
Deferred tax valuation allowance (a) | $ | 105 | 283 | (52 | ) | $ | 336 | |||||||
2017 | ||||||||||||||
Allowance for doubtful accounts | $ | 47 | 12 | (4 | ) | $ | 55 | |||||||
Deferred tax valuation allowance | $ | 25 | 84 | (4 | ) | $ | 105 |
Beginning of Year | Additions | Other (a) | Write-offs | End of Year | |||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 54 | 30 | (2) | (23) | $ | 59 | ||||||||||||||||||||||||||||
Deferred tax valuation allowance | $ | 307 | 51 | — | (101) | $ | 257 | ||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 46 | 15 | — | (7) | $ | 54 | ||||||||||||||||||||||||||||
Deferred tax valuation allowance | $ | 336 | 37 | — | (66) | $ | 307 | ||||||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 55 | 6 | — | (15) | $ | 46 | ||||||||||||||||||||||||||||
Deferred tax valuation allowance (b) | $ | 105 | 283 | — | (52) | $ | 336 | ||||||||||||||||||||||||||||
(a) Amount relates to the impact of the adjustment recorded for adoption of ASU 2016-13. | |||||||||||||||||||||||||||||||||||
(b) Additions to the valuation allowance for deferred tax assets of $195 million relate to balances acquired through acquisitions in 2018, with the remainder charged to income tax expense. |
EXHIBITS INDEX | ||||||||||
Exhibit No. | Description | |||||||||
2.1 | ||||||||||
3.1 | ||||||||||
3.2 | ||||||||||
3.3 | ||||||||||
3.4 | ||||||||||
3.5 | ||||||||||
4.1 | ||||||||||
4.2 | ||||||||||
4.3 | ||||||||||
4.4 | ||||||||||
4.5 | ||||||||||
4.6 | ||||||||||
4.7 | ||||||||||
4.8 | ||||||||||
EXHIBITS INDEX | ||||||||||
Exhibit No. | Description | |||||||||
4.9 | ||||||||||
4.10 | ||||||||||
4.11 | ||||||||||
4.20 | |||||||||
EXHIBITS INDEX | |||||||||
Exhibit No. | Description | ||||||||
4.31 | |||||||||
4.33 | |||||||||
10.2 | |||||||||
10.4 | |||||||||
10.5 | |||||||||
10.6 | |||||||||
10.7 | |||||||||
10.11 | |||||||||
EXHIBITS INDEX | ||||||||||
EXHIBITS INDEX | ||||||||||
10.26 | ||||||||||
23 | ||||||||||
31.1 | ||||||||||
31.2 | ||||||||||
32.1 | ||||||||||
32.2 | ||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document (filed herewith)† | |||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith)† | |||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith)† | |||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith)† | |||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith)† | |||||||||
104 | ||||||||
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
DISCOVERY, INC. (Registrant) | ||||||||||||||
Date: February | By: | /s/ David M. Zaslav | ||||||||||||
David M. Zaslav | ||||||||||||||
President and Chief Executive Officer |
Signature | Title | Date | ||||||||||||||
/s/ David M. Zaslav | President and Chief Executive Officer, and Director (Principal Executive Officer) | February | ||||||||||||||
David M. Zaslav | ||||||||||||||||
/s/ Gunnar Wiedenfels | Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February | ||||||||||||||
Gunnar Wiedenfels | ||||||||||||||||
/s/ Lori C. Locke | Executive Vice President and Chief Accounting Officer (Principal Accounting Officer) | February | ||||||||||||||
Lori C. Locke | ||||||||||||||||
/s/ Robert R. Beck | Director | February | ||||||||||||||
Robert R. Beck | ||||||||||||||||
/s/ Robert R. Bennett | Director | February | ||||||||||||||
Robert R. Bennett | ||||||||||||||||
/s/ Paul A. Gould | Director | February | ||||||||||||||
Paul A. Gould | ||||||||||||||||
/s/ | Director | February | ||||||||||||||
/s/ Kenneth W. Lowe | Director | February 22, 2021 | ||||||||||||||
Kenneth W. Lowe | ||||||||||||||||
/s/ John C. Malone | Director | February | ||||||||||||||
John C. Malone | ||||||||||||||||
/s/ Robert J. Miron | Director | February | ||||||||||||||
Robert J. Miron | ||||||||||||||||
/s/ Steven A. Miron | Director | February | ||||||||||||||
Steven A. Miron | ||||||||||||||||
/s/ Daniel E. Sanchez | Director | February 22, 2021 | ||||||||||||||
Daniel E. Sanchez | ||||||||||||||||
/s/ Susan M. Swain | Director | February | ||||||||||||||
Susan M. Swain | ||||||||||||||||
/s/ J. David Wargo | Director | February | ||||||||||||||
J. David Wargo |