Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Entity Registrant Name | Liberty Interactive Corp | ||
Entity Central Index Key | 1,355,096 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 14.3 | ||
QVC Group Common Class A | |||
Entity Common Stock, Shares Outstanding | 448,261,047 | ||
QVC Group Common Class B | |||
Entity Common Stock, Shares Outstanding | 29,203,895 | ||
Ventures Group Common Class A | |||
Entity Common Stock, Shares Outstanding | 81,687,188 | ||
Ventures Group Common Class B | |||
Entity Common Stock, Shares Outstanding | 4,455,308 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets, Current | ||
Cash and cash equivalents | $ 903 | $ 825 |
Trade and other receivables, net | 1,726 | 1,308 |
Inventory, net | 1,411 | 968 |
Other current assets | 125 | 68 |
Total current assets | 4,165 | 3,169 |
Investments in available-for-sale securities and other cost investments | 2,363 | 1,922 |
Investments in affiliates, accounted for using the equity method | 309 | 581 |
Investments in and Advances to Affiliates, at Fair Value | 3,635 | 3,161 |
Property and equipment, at cost | 2,564 | 2,163 |
Accumulated depreciation | (1,223) | (1,032) |
Property and equipment, net | 1,341 | 1,131 |
Intangible assets not subject to amortization: | ||
Goodwill | 7,082 | 6,052 |
Indefinite-Lived Trademarks | 3,929 | 3,302 |
Indefinite Lived Intangible Assets Total | 11,011 | 9,354 |
Intangible assets subject to amortization, net | 1,248 | 1,005 |
Other assets | 50 | 32 |
Total assets | 24,122 | 20,355 |
Liabilities and Equity | ||
Accounts payable | 1,151 | 790 |
Accrued liabilities | 1,125 | 706 |
Current portion of debt | 996 | 876 |
Other current liabilities | 169 | 162 |
Total current liabilities | 3,441 | 2,534 |
Long-term debt | 7,553 | 7,166 |
Deferred Tax Liabilities, Net, Noncurrent | 2,803 | 3,636 |
Other liabilities | 242 | 158 |
Total liabilities | 14,039 | 13,494 |
Equity | ||
Additional paid-in capital | 1,043 | |
Accumulated other comprehensive earnings, net of taxes | (133) | (266) |
Retained earnings | 9,068 | 7,032 |
Total stockholders' equity | 9,984 | 6,772 |
Noncontrolling interests in equity of subsidiaries | 99 | 89 |
Total equity | 10,083 | 6,861 |
Total liabilities and equity | 24,122 | 20,355 |
QVC Group Common Stock | ||
Assets, Current | ||
Cash and cash equivalents | 330 | 338 |
Trade and other receivables, net | 1,719 | 1,270 |
Inventory, net | 1,411 | 968 |
Other current assets | 122 | 66 |
Total current assets | 3,582 | 2,642 |
Investments in available-for-sale securities and other cost investments | 3 | 4 |
Investments in affiliates, accounted for using the equity method | 40 | 224 |
Property and equipment, net | 1,340 | 1,131 |
Intangible assets not subject to amortization: | ||
Indefinite Lived Intangible Assets Total | 10,982 | 9,325 |
Intangible assets subject to amortization, net | 1,244 | 1,001 |
Other assets | 46 | 30 |
Total assets | 17,237 | 14,357 |
Liabilities and Equity | ||
Accounts payable | 1,150 | 789 |
Accrued liabilities | 1,097 | 684 |
Current portion of debt | 17 | 14 |
Other current liabilities | 167 | 160 |
Total current liabilities | 2,482 | 1,760 |
Long-term debt | 6,686 | 6,361 |
Deferred Tax Liabilities, Net, Noncurrent | 994 | 1,116 |
Other liabilities | 147 | 161 |
Total liabilities | 10,309 | 9,398 |
Equity | ||
Total stockholders' equity | 6,819 | 4,860 |
Noncontrolling interests in equity of subsidiaries | 109 | 99 |
Total liabilities and equity | 17,237 | 14,357 |
QVC Group Common Stock | Common Class A | ||
Equity | ||
Common stock value | 5 | 5 |
Total equity | 5 | 5 |
Liberty Ventures common stock | ||
Assets, Current | ||
Cash and cash equivalents | 573 | 487 |
Trade and other receivables, net | 7 | 38 |
Other current assets | 3 | 2 |
Total current assets | 583 | 527 |
Investments in available-for-sale securities and other cost investments | 2,360 | 1,918 |
Investments in affiliates, accounted for using the equity method | 269 | 357 |
Investments in and Advances to Affiliates, at Fair Value | 3,635 | 3,161 |
Property and equipment, net | 1 | |
Intangible assets not subject to amortization: | ||
Indefinite Lived Intangible Assets Total | 29 | 29 |
Intangible assets subject to amortization, net | 4 | 4 |
Other assets | 4 | 2 |
Total assets | 6,885 | 5,998 |
Liabilities and Equity | ||
Accounts payable | 1 | 1 |
Accrued liabilities | 28 | 22 |
Current portion of debt | 979 | 862 |
Other current liabilities | 2 | 2 |
Total current liabilities | 959 | 774 |
Long-term debt | 867 | 805 |
Deferred Tax Liabilities, Net, Noncurrent | 1,809 | 2,520 |
Other liabilities | 95 | (3) |
Total liabilities | 3,730 | 4,096 |
Equity | ||
Total stockholders' equity | 3,165 | 1,912 |
Noncontrolling interests in equity of subsidiaries | (10) | (10) |
Total liabilities and equity | 6,885 | 5,998 |
Liberty Ventures common stock | Common Class A | ||
Equity | ||
Common stock value | 1 | 1 |
Total equity | $ 1 | $ 1 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for Doubtful Accounts Receivable, Current | $ 92 | $ 99 |
Short-term Debt, Fair Value | 978 | 862 |
Long-term Debt, Fair Value | $ 868 | $ 805 |
Preferred stock, par or stated value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
QVC Group Common Stock | Common Class A | ||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 4,000,000,000 | 4,000,000,000 |
Common stock, shares issued | 449,335,940 | 429,005,932 |
Common stock, shares outstanding | 449,335,940 | 429,005,932 |
QVC Group Common Stock | Common Class B | ||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 29,203,895 | 29,358,638 |
Common stock, shares outstanding | 29,203,895 | 29,358,638 |
Liberty Ventures common stock | Common Class A | ||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 81,686,659 | 81,150,711 |
Common stock, shares outstanding | 81,686,659 | 81,150,711 |
Liberty Ventures common stock | Common Class B | ||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 4,455,311 | 4,271,958 |
Common stock, shares outstanding | 4,455,311 | 4,271,958 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||||||||||
Total revenue, net | $ 10,404 | $ 10,647 | $ 9,989 | ||||||||
Operating costs and expenses: | |||||||||||
Cost of sales | 6,789 | 6,908 | 6,393 | ||||||||
Operating expenses | 659 | 707 | 699 | ||||||||
Selling, general and administrative, including stock-based compensation | 1,153 | 1,190 | 1,078 | ||||||||
Depreciation and amortization | 725 | 874 | 703 | ||||||||
Restructuring Charges | 35 | ||||||||||
Total operating costs and expenses | 9,361 | 9,679 | 8,873 | ||||||||
Operating income (loss) | $ 368 | $ 208 | $ 254 | $ 213 | $ 372 | $ 157 | $ 250 | $ 189 | 1,043 | 968 | 1,116 |
Other income (expense): | |||||||||||
Interest expense | (355) | (363) | (360) | ||||||||
Share of earnings (losses) of affiliates, net | (200) | (68) | (178) | ||||||||
Realized and unrealized gains (losses) on financial instruments, net | 618 | 1,175 | 114 | ||||||||
Gains (losses) on transactions, net | 410 | 9 | 110 | ||||||||
Other, net | 7 | 131 | 14 | ||||||||
Total other income (expense) | 480 | 884 | (300) | ||||||||
Earnings (loss) before income taxes | 1,523 | 1,852 | 816 | ||||||||
Income tax (expense) benefit | 964 | (598) | (185) | ||||||||
Earnings (loss) from continuing operations | 1,476 | 308 | 184 | 519 | 324 | 451 | 387 | 92 | 2,487 | 1,254 | 631 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 20 | 280 | |||||||||
Net earnings (loss) | 2,487 | 1,274 | 911 | ||||||||
Less net earnings (losses) attributable to the noncontrolling interests | 46 | 39 | 42 | ||||||||
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders | 2,441 | 1,235 | 869 | ||||||||
QVC Group Common Stock | |||||||||||
Revenue: | |||||||||||
Total revenue, net | 10,381 | 10,219 | 9,169 | ||||||||
Operating costs and expenses: | |||||||||||
Cost of sales | 6,789 | 6,642 | 5,847 | ||||||||
Operating expenses | 648 | 653 | 620 | ||||||||
Selling, general and administrative, including stock-based compensation | 1,088 | 1,063 | 875 | ||||||||
Depreciation and amortization | 721 | 850 | 657 | ||||||||
Restructuring Charges | 35 | ||||||||||
Total operating costs and expenses | 9,281 | 9,208 | 7,999 | ||||||||
Operating income (loss) | 1,100 | 1,011 | 1,170 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (293) | (289) | (283) | ||||||||
Share of earnings (losses) of affiliates, net | 38 | 42 | 55 | ||||||||
Realized and unrealized gains (losses) on financial instruments, net | 2 | 42 | |||||||||
Gains (losses) on transactions, net | 409 | ||||||||||
Other, net | (3) | 42 | (6) | ||||||||
Total other income (expense) | 151 | (203) | (192) | ||||||||
Earnings (loss) before income taxes | 1,251 | 808 | 978 | ||||||||
Income tax (expense) benefit | 3 | (297) | (304) | ||||||||
Earnings (loss) from continuing operations | 511 | 674 | |||||||||
Net earnings (loss) | 1,254 | 511 | 674 | ||||||||
Less net earnings (losses) attributable to the noncontrolling interests | 46 | 38 | 34 | ||||||||
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders | $ 887 | $ 119 | $ 111 | $ 91 | $ 188 | $ 61 | $ 130 | $ 94 | $ 1,208 | $ 473 | $ 640 |
Earnings (Loss) Per Common Share | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 2.07 | $ 0.27 | $ 0.25 | $ 0.20 | $ 0.41 | $ 0.13 | $ 0.27 | $ 0.19 | $ 2.71 | $ 0.99 | $ 1.35 |
Income (Loss) from Continuing Operations, Per Diluted Share | 2.05 | 0.26 | 0.24 | 0.20 | 0.40 | 0.13 | 0.27 | 0.19 | 2.70 | 0.98 | 1.33 |
Earnings Per Share, Basic | 2.07 | 0.27 | 0.25 | 0.20 | 0.41 | 0.13 | 0.27 | 0.19 | 2.71 | 0.99 | 1.35 |
Earnings Per Share, Diluted | $ 2.05 | $ 0.26 | $ 0.24 | $ 0.20 | $ 0.40 | $ 0.13 | $ 0.27 | $ 0.19 | $ 2.70 | $ 0.98 | $ 1.33 |
Liberty Ventures common stock | |||||||||||
Revenue: | |||||||||||
Total revenue, net | $ 23 | $ 428 | $ 820 | ||||||||
Operating costs and expenses: | |||||||||||
Cost of sales | 266 | 546 | |||||||||
Operating expenses | 11 | 54 | 79 | ||||||||
Selling, general and administrative, including stock-based compensation | 65 | 127 | 203 | ||||||||
Depreciation and amortization | 4 | 24 | 46 | ||||||||
Total operating costs and expenses | 80 | 471 | 874 | ||||||||
Operating income (loss) | (57) | (43) | (54) | ||||||||
Other income (expense): | |||||||||||
Interest expense | (62) | (74) | (77) | ||||||||
Share of earnings (losses) of affiliates, net | (238) | (110) | (233) | ||||||||
Realized and unrealized gains (losses) on financial instruments, net | 618 | 1,173 | 72 | ||||||||
Gains (losses) on transactions, net | 1 | 9 | 110 | ||||||||
Other, net | 10 | 89 | 20 | ||||||||
Total other income (expense) | 329 | 1,087 | (108) | ||||||||
Earnings (loss) before income taxes | 272 | 1,044 | (162) | ||||||||
Income tax (expense) benefit | 961 | (301) | 119 | ||||||||
Earnings (loss) from continuing operations | 743 | (43) | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 20 | 280 | |||||||||
Net earnings (loss) | 1,233 | 763 | 237 | ||||||||
Less net earnings (losses) attributable to the noncontrolling interests | 1 | 8 | |||||||||
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders | $ 576 | $ 177 | $ 64 | $ 416 | $ 131 | $ 408 | $ 249 | $ (26) | $ 1,233 | $ 762 | $ 229 |
Earnings (Loss) Per Common Share | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 6.70 | $ 2.06 | $ 0.75 | $ 4.89 | $ 1.15 | $ 2.68 | $ 1.73 | $ (0.07) | $ 14.34 | $ 5.54 | $ (0.36) |
Income (Loss) from Continuing Operations, Per Diluted Share | 6.70 | 2.03 | 0.74 | 4.84 | 1.15 | 2.64 | 1.72 | (0.07) | 14.17 | 5.49 | (0.36) |
Earnings Per Share, Basic | 6.70 | 2.06 | 0.75 | 4.89 | 1.21 | 2.87 | 1.75 | (0.18) | 14.34 | 5.69 | 1.61 |
Earnings Per Share, Diluted | $ 6.70 | $ 2.03 | $ 0.74 | $ 4.84 | $ 1.21 | $ 2.83 | $ 1.74 | $ (0.18) | $ 14.17 | $ 5.64 | $ 1.60 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net earnings (loss) | $ 2,487 | $ 1,274 | $ 911 |
Other comprehensive earnings (loss), net of taxes: | |||
Foreign currency translation adjustments | 134 | (84) | (101) |
Share of other comprehensive earnings (losses) of equity affiliates | 3 | (5) | (4) |
Other Comprehensive Income, Other, Net of Tax | 4 | (17) | |
Other comprehensive earnings (loss), Net-of-tax amount | 137 | (85) | (122) |
Comprehensive earnings (loss) | 2,624 | 1,189 | 789 |
Less comprehensive earnings (loss) attributable to the noncontrolling interests | 50 | 40 | 41 |
Comprehensive earnings (loss) attributable to Liberty Interactive Corporation shareholders | 2,574 | 1,149 | 748 |
QVC Group Common Stock | |||
Net earnings (loss) | 1,254 | 511 | 674 |
Other comprehensive earnings (loss), net of taxes: | |||
Comprehensive earnings (loss) attributable to Liberty Interactive Corporation shareholders | 1,338 | 388 | 540 |
Liberty Ventures common stock | |||
Net earnings (loss) | 1,233 | 763 | 237 |
Other comprehensive earnings (loss), net of taxes: | |||
Comprehensive earnings (loss) attributable to Liberty Interactive Corporation shareholders | $ 1,236 | $ 761 | $ 208 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from operating activities: | |||
Net earnings (loss) | $ 2,487 | $ 1,274 | $ 911 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Earnings (loss) from discontinued operations | (20) | (280) | |
Depreciation and amortization | 725 | 874 | 703 |
Stock-based compensation | 123 | 97 | 127 |
Cash payments for stock-based Compensation | (92) | (16) | |
Noncash interest expense | 12 | 5 | |
Share of (earnings) of affiliates, net | 200 | 68 | 178 |
Cash receipts from returns on equity investments | 29 | 31 | 32 |
Realized and unrealized gains (losses) on financial instruments, net | (618) | (1,175) | (114) |
(Gains) losses on transactions, net | (410) | (9) | (110) |
(Gains) Losses on extinguishment of debt | 6 | 21 | |
Deferred income tax expense | (1,136) | 473 | (103) |
Other noncash charges (credits), net | 10 | (115) | (11) |
Changes in operating assets and liabilities | |||
Current and other assets | (143) | 136 | (237) |
Payables and other current liabilities | 225 | (117) | (44) |
Net cash provided (used) by operating activities | 1,443 | 1,062 | |
Net cash provided (used) by operating activities | 1,492 | ||
Cash flows from investing activities: | |||
Cash (paid) for acquisitions, net of cash acquired | 22 | (844) | |
Cash proceeds from dispositions of investments | 3 | 353 | 271 |
Investments in and loans to cost and equity investees | (159) | (86) | (120) |
Cash receipts from returns of equity investments | 250 | ||
Capital expended for property and equipment | (204) | (233) | (258) |
Purchases of short-term and other marketable securities | (264) | (1,370) | |
Sales of short term and other marketable securities | 1,174 | 1,359 | |
Investments in equity investees measured at fair value | (2,400) | ||
Other investing activities, net | (53) | (36) | (76) |
Net cash used by investing activities | (788) | ||
Net cash used by investing activities | (391) | (1,492) | |
Cash flows from financing activities: | |||
Borrowings of debt | 2,469 | 3,427 | 4,558 |
Repayments of debt | (2,631) | (4,498) | (3,811) |
Repurchases of QVC Group common stock | (765) | (799) | (785) |
Withholding taxes on net share settlements of stock-based compensation | (70) | (16) | (30) |
Distribution from Liberty Expedia Holdings | 299 | ||
Other financing activities, net | (39) | 15 | (54) |
Net cash provided (used) by financing activities | (1,036) | (1,572) | (122) |
Effect of foreign currency exchange rates on cash | 13 | (20) | (3) |
Net increase (decrease) in cash and cash equivalents | 78 | (1,624) | 143 |
Cash and cash equivalents at beginning of period | 825 | 2,449 | 2,306 |
Cash and cash equivalents at end of period | $ 903 | 825 | 2,449 |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | |||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 17 | 17 | |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | (23) | ||
Net Cash Provided by (Used in) Discontinued Operations | $ 17 | $ (6) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Equity - USD ($) $ in Millions | QVC Group Common StockCommon Class A | QVC Group Common Stock | Liberty Ventures common stockCommon Class A | Liberty Ventures common stock | Additional Paid-In Capital | Accumulated Other Comprehensive Earnings | Retained Earnings | Noncontrolling Interest In Equity Of Subsidiaries | Total |
Balance at Dec. 31, 2014 | $ 5 | $ 1 | $ 4 | $ (94) | $ 5,757 | $ 107 | $ 5,780 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings (loss) | $ 674 | $ 237 | 869 | 42 | 911 | ||||
Other comprehensive earnings (loss) | (121) | (1) | (122) | ||||||
Stock-based compensation | 70 | 70 | |||||||
Series A QVC Group stock repurchases | (785) | (785) | |||||||
Shares issued by subsidiary | 1,087 | 1,087 | |||||||
Minimum withholding taxes on net share settlements of stock-based compensation | (30) | (30) | |||||||
Excess tax benefit from stock-based compensation | 16 | 16 | |||||||
Stock issued upon exercise of stock options | 40 | 40 | |||||||
Distribution to noncontrolling interest | (58) | (58) | |||||||
Distribution of Liberty TripAdvisor Holdings, Inc. | (1) | (1) | |||||||
Acquisition of noncontrolling interest | (31) | (2) | (33) | ||||||
Balance at Dec. 31, 2015 | 5 | 1 | 370 | (215) | 6,626 | 88 | 6,875 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings (loss) | 511 | 763 | 1,235 | 39 | 1,274 | ||||
Other comprehensive earnings (loss) | (86) | 1 | (85) | ||||||
Cumulative effect of accounting change | 5 | 5 | |||||||
Stock-based compensation | 89 | 89 | |||||||
Series A QVC Group stock repurchases | (799) | (799) | |||||||
Minimum withholding taxes on net share settlements of stock-based compensation | (16) | (16) | |||||||
Stock issued upon exercise of stock options | 24 | 24 | |||||||
Distribution to noncontrolling interest | (39) | (39) | |||||||
Distribution of Liberty Expedia Holdings | 35 | (493) | (458) | ||||||
Acquisition of noncontrolling interest | 341 | (341) | |||||||
Other | (9) | (9) | |||||||
Balance at Dec. 31, 2016 | 5 | 1 | (266) | 7,032 | 89 | 6,861 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings (loss) | $ 1,254 | $ 1,233 | 2,441 | 46 | 2,487 | ||||
Other comprehensive earnings (loss) | 133 | 4 | 137 | ||||||
Stock-based compensation | 123 | 123 | |||||||
Series A QVC Group stock repurchases | (765) | (765) | |||||||
Minimum withholding taxes on net share settlements of stock-based compensation | (70) | (70) | |||||||
Stock issued upon exercise of stock options | 5 | 5 | |||||||
Distribution to noncontrolling interest | (40) | (40) | |||||||
Distribution of Liberty Expedia Holdings | 1,343 | 1,343 | |||||||
Reclassification | 405 | (405) | |||||||
Other | 2 | 2 | |||||||
Balance at Dec. 31, 2017 | $ 5 | $ 1 | $ 1,043 | $ (133) | $ 9,068 | $ 99 | $ 10,083 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements | |
Basis of Presentation | (1) Basis of Presentation The accompanying consolidated financial statements include the accounts of Liberty Interactive Corporation (formerly known as Liberty Media Corporation) and its controlled subsidiaries (collectively, "Liberty," the "Company," “we,” “us,” and “our”) unless the context otherwise requires). All significant intercompany accounts and transactions have been eliminated in consolidation. Liberty, through its ownership of interests in subsidiaries and other companies, is primarily engaged in the video and online commerce industries in North America, Europe and Asia. On October 1, 2015, Liberty acquired all the outstanding shares of zulily, inc. (“zulily”) (now known as zulily, llc). zulily is an online retailer offering customers a fun and entertaining shopping experience with a fresh selection of new product styles launched every day. zulily is attributed to the QVC Group. See note 5 for additional information related to the acquisition. On July 22, 2016, Liberty completed the spin-off (the “CommerceHub Spin-Off”) of its former wholly-owned subsidiary CommerceHub, Inc. (“CommerceHub”). The CommerceHub Spin-Off was accomplished by the distribution by Liberty of a dividend of (i) 0.1 of a share of CommerceHub’s Series A common stock for each outstanding share of Liberty’s Series A Liberty Ventures common stock as of 5:00 p.m., New York City time, on July 8, 2016 (such date and time, the “Record Date”), (ii) 0.1 of a share of CommerceHub’s Series B common stock for each outstanding share of Liberty’s Series B Liberty Ventures common stock as of the Record Date and (iii) 0.2 of a share of CommerceHub’s Series C common stock for each outstanding share of Series A and Series B Liberty Ventures common stock as of the Record Date, in each case, with cash paid in lieu of fractional shares. In September 2016, the IRS completed its review of the CommerceHub Spin-Off and informed Liberty that it agreed with the nontaxable characterization of the transaction. Liberty received an Issue Resolution Agreement from the Internal Revenue Service (“IRS”) documenting this conclusion. CommerceHub is included in Liberty’s Corporate and other segment through July 22, 2016 and is not presented as a discontinued operation as the CommerceHub Spin-Off did not represent a strategic shift that had a major effect on Liberty’s operations and financial results. On November 4, 2016, Liberty completed the split-off (the “Expedia Holdings Split-Off”) of its former wholly-owned subsidiary Liberty Expedia Holdings, Inc. (“Expedia Holdings”). At the time of the Expedia Holdings Split-Off, Expedia Holdings was comprised of, among other things, Liberty’s former interest in Expedia, Inc. (“Expedia”) and Liberty’s former wholly-owned subsidiary Bodybuilding. On November 2, 2016, Expedia Holdings borrowed $350 million under a new margin loan and distributed $299 million, net of certain debt related costs, to Liberty on November 4, 2016. The Expedia Holdings Split-Off was accomplished by the redemption of (i) 0.4 of each outstanding share of Liberty’s Series A Liberty Ventures common stock for 0.4 of a share of Expedia Holdings Series A common stock at 5:00 p.m., New York City time, on November 4, 2016 (such date and time, the “Redemption Date”) and (ii) 0.4 of each outstanding share of Liberty’s Series B Liberty Ventures common stock for 0.4 of a share of Expedia Holdings Series B common stock on the Redemption Date, in each case, with cash paid in lieu of any fractional shares of Liberty Ventures common stock or Expedia Holdings common stock (after taking into account all of the shares owned of record by each holder thereof, as applicable). In February 2017, the IRS completed its review of the Expedia Holdings Split-Off and informed Liberty that it agreed with the nontaxable characterization of the transaction. Liberty received an Issue Resolution Agreement from the IRS documenting this conclusion. Liberty viewed Expedia and Bodybuilding as separate components and evaluated them separately for discontinued operations presentation. Based on a quantitative analysis, the split-off of Liberty’s interest in Expedia represented a strategic shift that had a major effect on Liberty’s operations, primarily due to one-time gains on transactions recognized by Expedia in 2015. Accordingly, the consolidated financial statements of Liberty have been prepared to reflect Liberty’s interest in Expedia as a discontinued operation. The disposition of Bodybuilding as part of the Expedia Holdings Split-Off does not have a major effect on Liberty’s historical results nor is it expected to have a major effect on Liberty’s future operations. The disposition of Bodybuilding did not represent a strategic shift in Liberty’s operations. Accordingly, Bodybuilding is not presented as a discontinued operation in the consolidated financial statements of Liberty. Bodybuilding is included in the Corporate and other segment through November 4, 2016. Pursuant to a reimbursement agreement entered into in connection with the Expedia Holdings Split-Off, Liberty reimbursed Expedia, a related party prior to the Expedia Holdings Split-Off, $4 million during October 2016, thereby settling the reimbursement agreement. Liberty and Liberty Media Corporation (“LMC”) (for accounting purposes a related party of Liberty) entered into certain agreements in order to govern certain of the ongoing relationships between the two companies. These agreements include a reorganization agreement, a services agreement, a facilities sharing agreement and a tax sharing agreement. The Tax Sharing Agreement provides for the allocation and indemnification of tax liabilities and benefits between Liberty and LMC and other agreements related to tax matters. Liberty is party to on-going discussions with the IRS under the Compliance Assurance Process audit program. The IRS may propose adjustments that relate to tax attributes allocated to and income allocable to LMC. Any potential outcome associated with any proposed adjustments would be covered by the Tax Sharing Agreement and are not expected to have any impact on Liberty's financial position. Pursuant to the Services Agreement, LMC will provide Liberty with general and administrative services including legal, tax, accounting, treasury and investor relations support. Liberty will reimburse LMC for direct, out-of-pocket expenses incurred by LMC in providing these services and for Liberty's allocable portion of costs associated with any shared services or personnel based on an estimated percentage of time spent providing services to Liberty. Under the Facilities Sharing Agreement, Liberty will share office space with LMC and related amenities at LMC's corporate headquarters. Under these various agreements approximately $11 million, $10 million and $13 million of these allocated expenses were reimbursed from Liberty to LMC for the years ended December 31, 2017, 2016 and 2015, respectively. |
Tracking Stocks
Tracking Stocks | 12 Months Ended |
Dec. 31, 2017 | |
Tracking Stock [Abstract] | |
Tracking Stocks | (2) Tracking Stocks Tracking stocks are a type of common stock that the issuing company intends to reflect or "track" the economic performance of a particular business or "group," rather than the economic performance of the company as a whole. Liberty has two tracking stocks—QVC Group common stock and Liberty Ventures common stock, which are intended to track and reflect the economic performance of Liberty’s QVC Group and Ventures Group, respectively. While the QVC Group and the Ventures Group have separate collections of businesses, assets and liabilities attributed to them, no group is a separate legal entity and therefore cannot own assets, issue securities or enter into legally binding agreements. Holders of tracking stock have no direct claim to the group's stock or assets and are not represented by separate boards of directors. Instead, holders of tracking stock are stockholders of the parent corporation, with a single board of directors and subject to all of the risks and liabilities of the parent corporation. The term "Ventures Group" does not represent a separate legal entity, rather it represents those businesses, assets and liabilities that have been attributed to that group. The Ventures Group consists of our businesses not included in the QVC Group including Evite, Inc. (“Evite”) and our interests in Liberty Broadband Corporation (“Liberty Broadband”), LendingTree, Inc. (“LendingTree”), FTD Companies, Inc. (“FTD”), investments in Charter Communications, Inc. (“Charter Communications, Inc.”) and ILG, Inc. (“ILG”), as well as cash in the amount of approximately $573 million (at December 31, 2017), including subsidiary cash. The Ventures Group also has attributed to it certain liabilities related to our Exchangeable Debentures and certain deferred tax liabilities. The Ventures Group is primarily focused on the maximization of the value of these investments and investing in new business opportunities. On April 4, 2017, Liberty entered into an Agreement and Plan of Reorganization (as amended, the “GCI Reorganization Agreement” and the transactions contemplated thereby, the “Transactions”) with General Communication, Inc. (“GCI”), an Alaska corporation, and Liberty Interactive LLC, a Delaware limited liability company and a direct wholly-owned subsidiary of Liberty (“LI LLC”), whereby Liberty will acquire GCI through a reorganization in which certain Ventures Group assets and liabilities will be contributed to GCI Liberty (as defined below) in exchange for a controlling interest in GCI Liberty. Liberty and LI LLC will contribute to GCI Liberty its entire equity interest in Liberty Broadband and Charter, along with, subject to certain exceptions, Liberty’s entire equity interests in LendingTree, together with the Evite operating business and certain other assets and liabilities, in exchange for (i) the issuance to LI LLC of a number of shares of new GCI Liberty Class A Common Stock and a number of shares of new GCI Liberty Class B Common Stock equal to the number of outstanding shares of Series A Liberty Ventures common stock and Series B Liberty Ventures common stock outstanding on the closing date of the Contribution, respectively, (ii) cash and (iii) the assumption of certain liabilities by GCI Liberty (the “Contribution”). Liberty will then effect a tax-free separation of its controlling interest in the combined company ( which has since been renamed GCI Liberty, Inc. (“GCI Liberty”)) to the holders of Liberty Ventures common stock, distributing one share of the corresponding class of new GCI Liberty common stock for each share of Liberty Ventures common stock held, in full redemption of all outstanding shares of such stock, leaving QVC Group common stock as the only outstanding common stock of Liberty. On the business day prior to the Contribution, holders of reclassified GCI Class A Common Stock and reclassified GCI Class B Common Stock each will receive (i) 0.63 of a share of new GCI Liberty Class A Common Stock and (ii) 0.20 of a share of new GCI Liberty Series A Cumulative Redeemable Preferred Stock (the “GCI Liberty preferred stock”) in exchange for each share of their reclassified GCI stock. The exchange ratios were determined based on total consideration of $32.50 per share for existing GCI common stock, comprised of $27.50 per share in new GCI Liberty Class A Common Stock and $5.00 per share in newly issued GCI Liberty preferred stock, and a Liberty Ventures reference price of $43.65 (with no additional premium paid for shares of reclassified GCI Class B Common Stock). The GCI Liberty Series A preferred stock will accrue dividends at an initial rate of 5% per annum (which would increase to 7% in connection with a future reincorporation of GCI Liberty in Delaware) and will be redeemable upon the 21st anniversary of the closing of the Transactions. At the closing of the Transactions, Liberty will reattribute certain assets and liabilities from the Ventures Group to the QVC Group (the “Reattribution”). The reattributed assets and liabilities are expected to include cash, Liberty’s interest in ILG, FTD, certain green energy investments, LI LLC’s exchangeable debentures, and certain tax benefits. Pursuant to a recent amendment to the GCI Reorganization Agreement, LI LLC’s 1.75% Exchangeable Debentures due 2046 (the “1.75% Exchangeable Debentures”) will not be subject to a pre-closing exchange offer and will instead be reattributed to the QVC Group, along with (i) an amount of cash equal to the net present value of the adjusted principal amount of such 1.75% Exchangeable Debentures (determined as if paid on October 5, 2023) and stated interest payments on the 1.75% Exchangeable Debentures to October 5, 2023 and (ii) an indemnity obligation from GCI Liberty with respect to any payments made by LI LLC in excess of stated principal and interest to any holder that exercises its exchange right under the terms of the debentures through October 5, 2023. The cash reattributed to the QVC Group will be funded by available cash attributed to Liberty’s Ventures Group and the proceeds of a margin loan facility attributed to the Ventures Group in an initial principal amount of $1 billion. Within six months of the closing, Liberty, LI LLC and GCI Liberty will cooperate with, and reasonably assist each other with respect to, the commencement and consummation of a purchase offer (the “Purchase Offer”) whereby LI LLC will offer to purchase, either pursuant to privately negotiated transactions or a tender offer, the 1.75% Exchangeable Debentures on terms and conditions (including maximum offer price) reasonably acceptable to GCI Liberty. GCI Liberty will indemnify LI LLC for each 1.75% Exchangeable Debenture repurchased by LI LLC in the Purchase Offer in an amount equal to the difference between (x) the purchase price paid by LI LLC to acquire such 1.75% Exchangeable Debenture in the Purchase Offer and (y) the sum of the amount of cash reattributed with respect to such purchased 1.75% Exchangeable Debenture in the Reattribution plus the amount of certain tax benefits attributable to such 1.75% Exchangeable Debenture so purchased. GCI Liberty’s indemnity obligation with respect to payments made upon a holder’s exercise of its exchange right will be eliminated as to any 1.75% Exchangeable Debentures purchased in the Purchase Offer. On December 29, 2017, Broadband Holdco, LLC, a wholly owned subsidiary of the Company, entered into a margin loan agreement with an availability of $1 billion with various lender parties. Approximately 42.7 million shares of Liberty Broadband series C common stock held by the Company with a value of $3.6 billion were pledged by Broadband Holdco, LLC as collateral to the loan as of December 31, 2017. This margin loan has a term of two years and bears interest at a rate of LIBOR plus 1.85% and contains an undrawn commitment fee of 0.75% per annum. As of December 31, 2017 there were no outstanding borrowings on the margin loan. Liberty will complete the Reattribution using similar valuation methodologies to those used in connection with its previous reattributions, including taking into account the advice of its financial advisor. The Transactions are expected to be consummated on March 9, 2018 , subject to the satisfaction of customary closing conditions. Simultaneous with that closing, QVC Group common stock will become the only outstanding common stock of Liberty, and thus QVC Group common stock will cease to function as a tracking stock and will effectively become regular common stock, and Liberty will be renamed Qurate Retail Group, Inc., with QVC, HSNi and zulily as wholly-owned subsidiaries. The term "QVC Group" does not represent a separate legal entity, rather it represents those businesses, assets and liabilities that have been attributed to that group. The QVC Group is primarily comprised of our merchandise-focused televised-shopping programs, Internet and mobile application businesses. The QVC Group has attributed to it the remainder of our businesses and assets not attributed to the Ventures Group, including our wholly-owned subsidiaries QVC and zulily (as of October 1, 2015) and HSN, Inc. (“HSNi”) (as of December 29, 2017) as well as cash in the amount of approximately $330 million (at December 31, 2017), including subsidiary cash. On May 18, 2016, Liberty completed a $2.4 billion investment in Liberty Broadband (for accounting purposes a related party of the Company) in connection with the merger of Charter and Time Warner Cable Inc. ("TWC"). The proceeds of this investment were used by Liberty Broadband to fund, in part, its acquisition of $5 billion of stock in the new public parent company (“Charter”) of the combined enterprises. Liberty, along with third party investors, all of whom invested on the same terms as Liberty, purchased newly issued shares of Liberty Broadband Series C common stock at a per share price of $56.23, which was determined based upon the fair value of Liberty Broadband's net assets on a sum-of-the-parts basis at the time the investment agreements were executed (May 2015). Liberty's investment in Liberty Broadband was funded using cash on hand and is attributed to the Ventures Group. See note 9 for additional information related to this investment. Liberty, as part of the merger of Charter and TWC described above, exchanged, in a tax-free transaction, its shares of TWC common stock for shares of Charter Class A common stock, on a one-for-one basis, and Liberty has granted to Liberty Broadband a proxy and a right of first refusal with respect to the shares of Charter Class A common stock held by Liberty in the exchange. See Exhibit 99.1 to this Annual Report on Form 10-K for unaudited attributed financial information for Liberty's tracking stock groups. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | (3) Summary of Significant Accounting Policies Cash and Cash Equivalents Cash equivalents consist of investments which are readily convertible into cash and have maturities of three months or less at the time of acquisition. Receivables Receivables are reflected net of an allowance for doubtful accounts and sales returns. A provision for bad debts is provided as a percentage of accounts receivable based on historical experience and included in selling, general and administrative expense. A provision for vendor receivables are determined based on an estimate of probable expected losses and included in cost of retail sales. A summary of activity in the allowance for doubtful accounts is as follows: Balance Additions Balance beginning Charged Deductions- end of of year to expense Other write-offs year amounts in millions 2017 $ 99 73 (1) (79) 92 2016 $ 87 109 (1) (96) 99 2015 $ 92 84 (1) (88) 87 Inventory Inventory, consisting primarily of products held for sale, is stated at the lower of cost or market. Cost is determined by the average cost method, which approximates the first-in, first-out method. Assessments about the realizability of inventory require the Company to make judgments based on currently available information about the likely method of disposition including sales to individual customers, returns to product vendors, liquidations and the estimated recoverable values of each disposition category. Inventory is stated net of inventory obsolescence reserves of $93 million and $76 million for the years ended December 31, 2017 and 2016, respectively. In July 2015, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance that changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. The new principle is part of the FASB’s simplification initiative and applies to entities that measure inventory using a method other than last-in, first-out or the retail inventory method. The new standard is effective for the Company for fiscal years and interim periods beginning after December 15, 2016. The Company has determined there is no significant effect of the standard on its ongoing financial reporting. Investments All marketable equity and debt securities held by the Company are classified as available-for-sale ("AFS") and are carried at fair value generally based on quoted market prices. United States (“U.S.”) generally accepted accounting principles ("GAAP") permit entities to choose to measure many financial instruments, such as AFS securities, and certain other items at fair value and to recognize the changes in fair value of such instruments in the entity's statements of operations (the "fair value option"). Liberty had previously entered into economic hedges for certain of its non-strategic AFS securities (although such instruments were not accounted for as fair value hedges by the Company). Changes in the fair value of these economic hedges were reflected in Liberty's statements of operations as unrealized gains (losses). In order to better match the changes in fair value of the subject AFS securities and the changes in fair value of the corresponding economic hedges in the Company's financial statements, Liberty has elected the fair value option for those of its AFS securities which it considers to be non-strategic ("Fair Value Option Securities"). Accordingly, changes in the fair value of Fair Value Option Securities, as determined by quoted market prices, are reported in realized and unrealized gains (losses) on financial instruments in the accompanying consolidated statements of operations. The total value of AFS securities for which the Company has elected the fair value option aggregated $2,275 million and $1,846 million as of December 31, 2017 and 2016, respectively. Other investments in which the Company's ownership interest is less than 20%, unless the Company has the ability to exercise significant influence, and that are not considered marketable securities are carried at cost. For those investments in affiliates in which the Company has the ability to exercise significant influence, the equity method of accounting is used, except in situations where the fair value option has been selected. Under the equity method of accounting, the investment, originally recorded at cost, is adjusted to recognize the Company's share of net earnings or losses of the affiliate as they occur rather than as dividends or other distributions are received. Losses are limited to the extent of the Company's investment in, advances to and commitments for the investee. In the event the Company is unable to obtain accurate financial information from an equity affiliate in a timely manner, the Company records its share of earnings or losses of such affiliate on a lag. Changes in the Company's proportionate share of the underlying equity of an equity method investee, which result from the issuance of additional equity securities by such equity investee, are recognized in the statements of operations through the Other, net line item. To the extent there is a difference between our ownership percentage in the underlying equity of an equity method investee and our carrying value, such difference is accounted for as if the equity method investee were a consolidated subsidiary. The Company continually reviews its equity investments and its AFS securities which are not Fair Value Option Securities to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company's carrying value; the severity of the decline; and the financial condition, operating performance and near term prospects of the investee. In addition, the Company considers the reason for the decline in fair value, be it general market conditions, industry specific or investee specific; analysts' ratings and estimates of 12 month share price targets for the investee; changes in stock price or valuation subsequent to the balance sheet date; and the Company's intent and ability to hold the investment for a period of time sufficient to allow for a recovery in fair value. If the decline in fair value is deemed to be other than temporary, the carrying value of the security is written down to fair value. In situations where the fair value of an investment is not evident due to a lack of a public market price or other factors, the Company uses its best estimates and assumptions to arrive at the estimated fair value of such investment. The Company's assessment of the foregoing factors involves considerable management judgment and accordingly, actual results may differ materially from the Company's estimates and judgments. Writedowns for AFS securities which are not Fair Value Option Securities would be included in the consolidated statements of operations as other than temporary declines in fair values of investments. Writedowns for equity method investments would be included in share of earnings (losses) of affiliates. In January 2016, the FASB issued new accounting guidance that is intended to improve the recognition and measurement of financial instruments. The new guidance requires equity investments with readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation) to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The new standard is effective for the Company for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted under certain circumstances. The Company plans to adopt this standard during the first quarter of 2018 and does not expect that the adoption will have a material effect on its consolidated financial statements. Derivative Instruments and Hedging Activities All of the Company's derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive earnings and are recognized in the statements of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. If the derivative is not designated as a hedge, changes in the fair value of the derivative are recognized in earnings. The Company generally enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. The ineffective portion of the change in fair value of a derivative instrument that qualifies as a cash flow hedge is reported in earnings. Property and Equipment Property and equipment consisted of the following: December 31, December 31, 2017 2016 amounts in millions Land $ 108 81 Buildings and improvements 1,165 1,016 Support equipment 1,240 1,034 Projects in progress 51 32 Total property and equipment $ 2,564 2,163 Property and equipment, including significant improvements, is stated at cost. Depreciation is computed using the straight-line method using estimated useful lives of 2 to 15 years for support equipment and 8 to 20 years for buildings and improvements. Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $176 million, $171 million and $153 million, respectively. Intangible Assets Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment upon certain triggering events. Goodwill and other intangible assets with indefinite useful lives (collectively, "indefinite lived intangible assets") are not amortized, but instead are tested for impairment at least annually. Our annual impairment assessment of our indefinite-lived intangible assets is performed during the fourth quarter of each year. In January 2017, the FASB issued new accounting guidance to simplify the measurement of goodwill impairment. Under the new guidance, an entity no longer performs a hypothetical purchase price allocation to measure goodwill impairment. Instead, a goodwill impairment is measured using the difference between the carrying value and the fair value of the reporting unit. The Company early adopted this guidance during the fourth quarter of 2017. In evaluating goodwill on a qualitative basis, the Company reviews the business performance of each reporting unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it was more likely than not that an indicated impairment exists for any of our reporting units. The Company considers whether there are any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges, the legal environments and how these factors might impact company specific performance in future periods. As part of the analysis the Company also considers fair value determinations for certain reporting units that have been made at various points throughout the current year and prior year for other purposes. If based on the qualitative analysis it is more likely than not that an impairment exists, the Company performs the quantitative impairment test. The quantitative goodwill impairment test compares the estimated fair value of a reporting unit to its carrying value. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in Liberty's valuation analyses are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. The accounting guidance also permits entities to first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. The accounting guidance also allows entities the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to the quantitative impairment test. The entity may resume performing the qualitative assessment in any subsequent period. If the qualitative assessment supports that it is more likely than not that the carrying value of the Company’s indefinite-lived intangible assets, other than goodwill, exceeds its fair value, then a quantitative assessment is performed. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Impairment of Long-lived Assets The Company periodically reviews the carrying amounts of its property and equipment and its intangible assets (other than goodwill and indefinite-lived intangible assets) to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. If the carrying amount of the asset group is greater than the expected undiscounted cash flows to be generated by such asset group, including its ultimate disposition, an impairment adjustment is to be recognized. Such adjustment is measured by the amount that the carrying value of such asset groups exceeds their fair value. The Company generally measures fair value by considering sale prices for similar asset groups or by discounting estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of asset groups. Accordingly, actual results could vary significantly from such estimates. Asset groups to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. Noncontrolling Interests The Company reports noncontrolling interests of subsidiaries within equity in the balance sheet and the amount of consolidated net income attributable to the parent and to the noncontrolling interest is presented in the statements of operations. Also, changes in ownership interests in subsidiaries in which the Company maintains a controlling interest are recorded in equity. Foreign Currency Translation The functional currency of the Company is the U.S. Dollar. The functional currency of the Company's foreign operations generally is the applicable local currency for each foreign subsidiary. Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date, and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustment, net of applicable income taxes, is recorded as a component of accumulated other comprehensive earnings in stockholders' equity. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses which are reflected in the accompanying consolidated statements of operations and comprehensive earnings (loss) as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions. These realized and unrealized gains and losses are reported in the Other, net line item in the consolidated statements of operations. Revenue Recognition Retail revenue is recognized at the time of delivery to customers. The revenue for shipments in-transit is recorded as deferred revenue and included in other current liabilities. Additionally, service revenue, which is less than one percent of overall revenue, is recognized when the applicable criteria are met: persuasive evidence of an arrangement exists, services have been rendered, the price is fixed and determinable and collectability is reasonably assured. An allowance for returned merchandise is provided as a percentage of sales based on historical experience. The total reduction in sales due to returns for the years ended December 31, 2017, 2016 and 2015 aggregated $1,861 million, $1,865 million and $2,037 million, respectively. Sales tax collected from customers on retail sales is recorded on a net basis and is not included in revenue. A summary of activity in the allowance for sales returns, is as follows: Balance beginning of year Additions - charged to earnings Deductions Balance end of year in millions 2017 $ 98 1,027 (1,023) 102 2016 $ 106 1,051 (1,060) 98 2015 $ 109 1,213 (1,216) 106 In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In March 2016, the FASB issued additional guidance which clarifies principal versus agent considerations, and in April 2016, the FASB issued further guidance which clarifies the identification of performance obligations and the implementation guidance for licensing. The updated guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a full retrospective or modified retrospective transition method. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted only for fiscal years beginning after December 15, 2016. The Company will adopt the accounting guidance effective as of January 1, 2018 with an immaterial adjustment to retained earnings using the modified transition method. The Company has completed our review of the applicable ASU and has concluded it will recognize revenue at the time of shipment to its customers consistent with when title passes. This is a change from the current practice whereby the Company recognizes revenue at the time of delivery to the customers and deferred revenue is recorded to account for the shipments in-transit. The Company has also concluded that it will continue to act as principal in certain vendor arrangements and will recognize credit card income for its QVC-branded credit card as part of net revenue. At the current time, the credit card income is included as an offset to selling, general, and administrative expenses. In addition, the Company’s balance sheet presentation of its sales return reserve will change to present a separate return asset and liability, instead of the net presentation currently used. The Company will also elect the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component when its payment terms are less than one year, as well as the practical expedient to exclude from the measurement of the transaction price sales and similar taxes collected from customers. Cost of Sales Cost of sales primarily includes actual product cost, provision for obsolete inventory, buying allowances received from suppliers, shipping and handling costs and warehouse costs. Advertising Costs Advertising costs generally are expensed as incurred. Advertising expense aggregated $217 million, $231 million and $154 million for the years ended December 31, 2017, 2016 and 2015, respectively. Advertising costs are reflected in the selling, general and administrative, including stock-based compensation line item in our consolidated statements of operations. Stock-Based Compensation As more fully described in note 15, the Company has granted to its directors, employees and employees of its subsidiaries options, restricted stock and stock appreciation rights relating to shares of QVC Group and/or Liberty Ventures common stock ("Liberty common stock") (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an Award of equity instruments (such as stock options and restricted stock) based on the grant-date fair value (“GDFV”) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for an Award of liability instruments (such as stock appreciation rights that will be settled in cash) based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date. Stock compensation expense was $123 million, $97 million and $127 million for the years ended December 31, 2017, 2016 and 2015, respectively, included in selling, general and administrative expense in the accompanying consolidated statements of operations. In March 2016, the FASB issued new guidance which simplifies several aspects of the accounting for share-based payment award transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for the Company for fiscal years and interim periods beginning after December 15, 2016, with early application permitted. The Company adopted this guidance in the third quarter of 2016. In accordance with the new guidance, excess tax benefits and tax deficiencies are recognized as income tax benefit or expense rather than as additional paid-in capital. The Company has elected to recognize forfeitures as they occur rather than continue to estimate expected forfeitures. In addition, pursuant to the new guidance, excess tax benefits are classified as an operating activity on the consolidated statements of cash flows. The recognition of excess tax benefits and deficiencies are applied prospectively from January 1, 2016. For tax benefits that were not previously recognized and for adjustments to compensation cost based on actual forfeitures, the Company has recorded a cumulative-effect adjustment in retained earnings as of January 1, 2016. The presentation changes for excess tax benefits have been applied retrospectively in the consolidated statements of cash flows, resulting in $33 million of excess tax benefits for the year ended December 31, 2015 reclassified from cash flows from financing activities to cash flows from operating activities. Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying value amounts and income tax bases of assets and liabilities and the expected benefits of utilizing net operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using enacted tax rates in effect for each taxing jurisdiction in which the Company operates for the year in which those temporary differences are expected to be recovered or settled. Net deferred tax assets are then reduced by a valuation allowance if the Company believes it more likely than not such net deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. Such interest expense is included in interest expense in the accompanying consolidated statements of operations. Any accrual of penalties related to underpayment of income taxes on uncertain tax positions is included in other income (expense) in the accompanying consolidated statements of operations. In October 2016, the FASB issued new guidance amending the accounting for income taxes associated with intra-entity transfers of assets other than inventory. This accounting update, which is part of the FASB's simplification initiative, is intended to reduce diversity in practice and the complexity of tax accounting, particularly for those transfers involving intellectual property. This new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. We anticipate an immaterial retained earnings decrease upon adoption related to the unrecognized income tax effects of asset transfers that occurred prior to adoption. Earnings (Loss) Attributable to Liberty Stockholders and Earnings (Loss) Per Common Share Net earnings (loss) attributable to Liberty stockholders is comprised of the following (amounts in millions): Years ended December 31, 2017 2016 2015 QVC Group Net earnings (loss) from continuing operations $ 1,208 473 640 Net earnings (loss) from discontinued operations $ NA NA NA Liberty Ventures Net earnings (loss) from continuing operations $ 1,233 742 (51) Net earnings (loss) from discontinued operations $ — 20 280 Basic earnings (loss) per common share ("EPS") is computed by dividing net earnings (loss) attributable to such common stock by the weighted average number of common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. Series A and Series B QVC Group Common Stock EPS for all periods through December 31, 2017, is based on the following weighted average shares outstanding. Excluded from diluted EPS for the years ended December 31, 2017, 2016 and 2015 are approximately 20 million, 13 million and 6 million potential common shares, respectively, because their inclusion would be antidilutive. Years ended December 31, 2017 2016 2015 number of shares in millions Basic WASO 445 476 475 Potentially dilutive shares 3 5 6 Diluted WASO 448 481 481 Series A and Series B Liberty Ventures Common Stock EPS for all periods through December 31, 2017, is based on the following weighted average shares outstanding. Excluded from diluted EPS for the years ended December 31, 2017, 2016, and 2015 are less than a million potential common shares because their inclusion would be antidilutive. Years ended December 31, 2017 2016 2015 number of shares in millions Basic WASO 86 134 142 Potentially dilutive shares 1 1 1 Diluted WASO 87 135 143 Reclasses and adjustments Certain prior period amounts have been reclassified for comparability with the current year presentation. As a result of repurchases of Series A QVC Group common stock, the Company’s additional paid-in capital balance was in a deficit position in certain quarterly periods during the year ended December 31, 2017. In order to maintain a zero balance in the additional paid-in capital account, we reclassified the amount of the deficit ($405 million) at December 31, 2017 to retained earnings. Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Liberty considers (i) recurring and non-recurring fair value measurements, (ii) accounting for income taxes, (iii) assessments of other-than-temporary declines in fair value of its investments and (iv) estimates of retail-related adjustments and allowances to be its most significant estimates. Liberty holds investments that are accounted for using the equity method. Liberty does not control the decision making process or business management practices of these affiliates. Accordingly, Liberty relies on management of these affiliates to provide it with accurate financial information prepared in accordance with GAAP that Liberty uses in the application of the equity method. In addition, Liberty relies on audit reports that are provided by the affiliates' independent auditors on the financial statements of such affiliates. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliates that would have a material effect on Liberty's consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued new guidance which revises the accounting for leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The new guidance also simplifies the accounting for sale and leaseback transactions. The new standard, to be applied via a modified retrospective transition approach, is effective for the Company for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. The Company has not yet determined the effect of the standard on its ongoing financial reporting. The Company is currently working with its consolidated subsidiaries to evaluate the impact of the adoption of this new guidance on our consolidated financial statements, including identifying the population of leases, evaluating technology solutions and collecting lease data. |
Supplemental Disclosures to Con
Supplemental Disclosures to Consolidated Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Disclosures to Consolidated Statements of Cash Flow [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | (4 ) Supplemental Disclosures to Consolidated Statements of Cash Flows Years ended December 31, 2017 2016 2015 amounts in millions Cash paid for acquisitions: Fair value of assets acquired $ 956 — 154 Intangible assets not subject to amortization 1,577 7 1,791 Intangible assets subject to amortization 651 (40) 837 Net liabilities assumed (977) — (214) Deferred tax assets (liabilities) (281) 33 (637) Fair value of equity consideration (1,948) — (1,087) Cash paid (received) for acquisitions, net of cash acquired $ (22) — 844 Cash paid for interest $ 343 354 374 Cash paid for income taxes $ 158 204 318 |
Acquistions
Acquistions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | 0 (5) Acquisitions On December 29, 2017, Liberty acquired the approximately 62% of HSNi it did not already own in an all-stock transaction making HSNi a wholly-owned subsidiary, attributed to the QVC Group. HSNi shareholders (other than Liberty) received fixed consideration of 1.65 shares of Series A QVC Group common stock (“QVCA”) for each share of HSNi common stock. Liberty issued 53.6 million shares QVCA common stock to HSNi shareholders. In conjunction with application of acquisition accounting, we recorded a full step up in basis of HSNi which resulted in a $409 million gain. The fair market value of our ownership interest previously held in HSNi ($605 million) was determined based on the trading price of QVCA common stock on the date of the acquisition (Level 1) less a control premium. The market value of the shares of QVCA common stock issued to HSNi shareholders ($1.3 billion) was determined based on the trading price of QVCA common stock on the date of the acquisition. The total equity value of the transaction was $1.9 billion. With the exception of $43 million of severance-related costs incurred on December 30, 2017, HSNi’s results of operations are not included in our consolidated operating results for the year ended December 31, 2017, as the final two days of the period were considered immaterial. The preliminary purchase price allocation for HSNi is as follows (amounts in millions): Cash and cash equivalents $ Property and equipment Other assets 752 Goodwill 950 Trademarks Intangible assets subject to amortization Accounts payable & accrued liabilities Debt Other liabilities assumed Deferred tax liabilities $ 1,948 Goodwill is calculated as the excess of the consideration transferred over the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce, value associated with future customers, continued innovation and noncontractual relationships. Intangible assets acquired during 2017 were comprised of customer relationships of $425 million with a weighted average life of approximately 9 years, capitalized software of $16 million with a weighted average life of approximately 1 year, and technology of $161 million with a weighted average life of approximately 7 years. None of the acquired goodwill is expected to be deductible for tax purposes. As of December 31, 2017, the valuation related to the purchase is not final and the purchase price allocation is preliminary and subject to revision. The primary areas of the purchase price allocation that are not yet finalized are related to certain fixed and intangible assets, liabilities and tax balances. Included in net earnings (loss) from continuing operations for the year ended December 31, 2017 is $43 million related to HSNi’s operations since the date of acquisition, which is primarily related to severance cost post acquisition. Of the $43 million, $38 million related to HSN ($8 million of which related to stock-based compensation expense and is included in Selling, general and administrative, including stock-based compensation expense in the consolidated statements of operations) and $5 million related to Cornerstone. The pro forma revenue and net earnings from continuing operations of Liberty, prepared utilizing the historical financial statements of HSNi, giving effect to purchase accounting related adjustments made at the time of acquisition, as if the transaction discussed above occurred on January 1, 2016, are as follows: Years Ended December 31, 2017 2016 amounts in millions (unaudited) Revenue $ 13,791 14,220 Net earnings (loss) from continuing operations 2,200 1,258 The pro forma information is not representative of Liberty’s future financial position, future results of operations or future cash flows nor does it reflect what Liberty’s financial position, results of operations or cash flows would have been as if the transaction had happened previously and Liberty controlled HSNi during the periods presented. The pro forma information includes a nonrecurring adjustment for transactions costs incurred as a result of the acquisition. On October 1, 2015, Liberty acquired zulily for consideration of approximately $2.3 billion, comprised of $9.375 of cash and 0.3098 newly issued shares of QVCA for each zulily share, with cash paid in lieu of any fractional shares. The fair value of the issued shares was determined based on the trading price of QVCA shares on the last trading day prior to the acquisition. Funding for the $1.2 billion cash portion of the consideration came from cash on hand at zulily and a distribution from QVC funded by a drawdown under its revolving credit facility (see note 11). zulily is attributed to the QVC Group. The final purchase price allocation for zulily is as follows (amounts in millions): Cash and cash equivalents $ Property and equipment Other assets Goodwill Trademarks Intangible assets subject to amortization Accounts payable & accrued liabilities Other liabilities assumed Deferred tax liabilities $ Intangible assets acquired during 2015 were comprised of customer relationships of $490 million with a weighted average life of approximately 4 years, email lists of $250 million with a weighted average life of approximately 2 years, and capitalized software of $50 million with a weighted average life of approximately 3 years. None of the acquired goodwill is deductible for tax purposes. Subsequent to December 31, 2015, the preliminary purchase price allocation was adjusted, resulting in decreases of $50 million to trademarks, $40 million to intangible assets subject to amortization and $33 million to deferred tax liabilities and a corresponding increase of $57 million to goodwill. If these adjustments had been recorded as of the acquisition date, amortization expense would have been approximately $3 million lower for the period ended December 31, 2015. There have been no other significant changes to our purchase price allocation since December 31, 2015. Included in net earnings (loss) from continuing operations for the year ended December 31, 2015 is $34 million related to zulily’s operations since the date of acquisition. |
Disposals
Disposals | 12 Months Ended |
Dec. 31, 2017 | |
Disposals [Abstract] | |
Disposals | (6) Disposals Disposals - Presented as Discontinued Operations On November 4, 2016, Liberty completed the Expedia Holdings Split-Off. Expedia Holdings is comprised of, among other things, Liberty’s former interest in Expedia, Inc. and Liberty’s former wholly-owned subsidiary Bodybuilding. Liberty views Expedia and Bodybuilding as separate components and evaluated them separately for discontinued operations presentation. Based on a quantitative analysis, the split-off of Liberty’s interest in Expedia represents a strategic shift that has a major effect on Liberty’s operations, primarily due to prior year one-time gains on transactions recognized by Expedia. Accordingly, the consolidated financial statements of Liberty have been prepared to reflect Liberty’s interest in Expedia as a discontinued operation. The disposition of Bodybuilding as part of the Expedia Holdings Split-Off does not have a major effect on Liberty’s historical results nor is it expected to have a major effect on Liberty’s future operations. The disposition of Bodybuilding does not represent a strategic shift in Liberty’s operations. Accordingly, Bodybuilding is not presented as a discontinued operation in the consolidated financial statements of Liberty. See “Disposals – Not Presented as Discontinued Operations” below for additional information regarding Bodybuilding. Prior to the Expedia Holdings Split-Off, Liberty accounted for the investment in Expedia as an equity method affiliate and recorded our share of Expedia’s earnings (losses) in our consolidated statements of operations. Accordingly, Expedia’s assets, liabilities and results of operations were not included in Liberty’s consolidated financial statements. Certain financial information for Expedia for the periods prior to the Expedia Holdings Split-Off is as follows: December 31, 2015 amounts in millions Current assets $ 2,976 Total assets $ 15,486 Current liabilities $ 5,926 Total liabilities $ 10,556 Equity $ 4,930 Year ended December 31, 2015 amounts in millions Operating income $ 414 Gain on sale of business $ 509 Income tax (expense) benefit $ (203) Net earnings (loss) attributable to Expedia shareholders $ 764 Certain financial information for Liberty’s investment in Expedia, which is included in the discontinued operations line items of the consolidated Liberty balance sheets as of December 31, 2015, is as follows (amounts in millions): December 31, 2015 Investments in affiliates, accounted for using the equity method $ Deferred income tax liabilities $ Certain financial information for Liberty’s investment in Expedia, which is included in earnings (loss) from discontinued operations, is as follows (amounts in millions): Years ended December 31, 2016 2015 Earnings (loss) before income taxes $ 24 Income tax (expense) benefit $ (4) (157) The combined impact from discontinued operations, discussed above, is as follows: Years ended December 31, 2016 2015 Basic earnings (loss) from discontinued operations attributable to Liberty shareholders per common share (note 3): Series A and Series B QVC Group common stock $ NA NA Series A and Series B Liberty Ventures common stock $ 0.15 1.97 Diluted earnings (loss) from discontinued operations attributable to Liberty shareholders per common share (note 3): Series A and Series B QVC Group common stock $ NA NA Series A and Series B Liberty Ventures common stock $ 0.15 1.96 Disposals – Not Presented as Discontinued Operations On June 30, 2015, Liberty sold Backcountry for aggregate consideration, including assumption of debt, amounts held in escrow, and a noncontrolling interest, of approximately $350 million. The sale resulted in a $105 million gain, which is included in Gains (losses) on transactions, net in the accompanying consolidated statements of operations. Backcountry is not presented as a discontinued operation as the sale did not represent a strategic shift that has a major effect on Liberty’s operations and financial results. Included in Total revenue, net in the accompanying consolidated statements of operations is $227 million for the year ended December 31, 2015, related to Backcountry. Included in Net earnings (loss) in the accompanying consolidated statements of operations are losses of $3 million for the year ended December 31, 2015, related to Backcountry. On July 22, 2016, Liberty completed the CommerceHub Spin-Off. CommerceHub is included in the Corporate and other segment through July 22, 2016 and is not presented as a discontinued operation as the CommerceHub Spin-Off did not represent a strategic shift that had a major effect on Liberty’s operations and financial results. Included in Total revenue, net in the accompanying consolidated statements of operations is $51 million and $89 million for the years ended December 31, 2016 and 2015, respectively, related to CommerceHub. Included in Net earnings (loss) in the accompanying consolidated statements of operations are earnings of $5 million and losses of $10 million for the years ended December 31, 2016 and 2015, respectively, related to CommerceHub. Included in Total assets in the accompanying consolidated balance sheets as of December 31, 2015 is $115 million related to CommerceHub. As discussed above, on November 4, 2016, Liberty completed the Expedia Holdings Split-Off. Although Liberty’s interest in Expedia has been presented as a discontinued operation, Bodybuilding is not presented as a discontinued operation in the consolidated financial statements of Liberty. Bodybuilding is included in the Corporate and other segment through November 4, 2016. Included in Total revenue, net in the accompanying consolidated statements of operations is $355 million and $464 million for the years ended December 31, 2016 and 2015, respectively, related to Bodybuilding. Included in Net earnings (loss) in the accompanying consolidated statements of operations are earnings of $6 million and $3 million for the years ended December 31, 2016 and 2015, respectively, related to Bodybuilding. Included in Total assets in the accompanying consolidated balance sheets as of December 31, 2015 is $198 million related to Bodybuilding. |
Assets And Liabilities Measured
Assets And Liabilities Measured At Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured At Fair Value | (7) Assets and Liabilities Measured at Fair Value For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs, other than quoted market prices included within Level 1, are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company does not have any recurring assets or liabilities measured at fair value that would be considered Level 3. The Company's assets and liabilities measured at fair value are as follows: December 31, 2017 December 31, 2016 Quoted prices Quoted prices in active Significant in active Significant markets other markets other for identical observable for identical observable assets inputs assets inputs Description Total (Level 1) (Level 2) Total (Level 1) (Level 2) amounts in millions Cash equivalents $ 655 655 — 625 625 — Available-for-sale securities $ 2,275 2,275 — 1,846 1,846 — Investment in Liberty Broadband $ 3,635 3,635 — 3,161 3,161 — Debt $ 1,846 — 1,846 1,667 — 1,667 The majority of the Company's Level 2 financial assets and liabilities are debt instruments with quoted market prices that are not considered to be traded on "active markets," as defined in GAAP. Accordingly, the debt instruments are reported in the foregoing table as Level 2 fair value. Realized and Unrealized Gains (Losses) on Financial Instruments Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following: Years ended December 31, 2017 2016 2015 amounts in millions Fair Value Option Securities - AFS $ 434 723 84 Fair Value Option Securities - Liberty Broadband 473 761 NA Exchangeable senior debentures (193) (308) 30 Other financial instruments (96) (1) — $ 618 1,175 114 |
Investments In Available-For-Sa
Investments In Available-For-Sale Securities And Other Cost Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Available-For-Sale Securities And Other Cost Investments | |
Investments in available-for-sale securities and other cost investments | (8) Investments in Available-for-Sale Securities and Other Cost Investments All marketable equity and debt securities held by the Company are classified as AFS and are carried at fair value generally based on quoted market prices. GAAP permits entities to choose to measure many financial instruments, such as AFS securities, and certain other items at fair value and to recognize the changes in fair value of such instruments in the entity's statements of operations (the "fair value option"). Liberty has elected the fair value option for its AFS securities ("Fair Value Option Securities"). Accordingly, changes in the fair value of Fair Value Option Securities, as determined by quoted market prices, are reported in realized and unrealized gains (losses) on financial instruments in the accompanying consolidated statements of operations. Investments in AFS securities, the majority of which are considered Fair Value Option Securities and other cost investments, are summarized as follows: December 31, December 31, 2017 2016 amounts in millions QVC Group Other investments $ 3 4 Total attributed QVC Group 3 4 Ventures Group Charter 1,800 1,543 ILG 474 302 Other investments 86 73 Total attributed Ventures Group 2,360 1,918 Consolidated Liberty $ 2,363 1,922 |
Investments In Affiliates Accou
Investments In Affiliates Accounted For Using The Equity Method | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Affiliates Accounted For Using The Equity Method | |
Investments In Affiliates Accounted For Using The Equity Method | (9) Investments in Affiliates Accounted for Using the Equity Method Liberty has various investments accounted for using the equity method. The following table includes Liberty's carrying amount and percentage ownership of the more significant investments in affiliates at December 31, 2017 and the carrying amount at December 31, 2016: December 31, 2017 December 31, 2016 Percentage Market Carrying Carrying ownership value amount amount dollars in millions QVC Group HSNi (1) 100 % $ NA $ NA 184 Other various NA 40 40 Total QVC Group 40 224 Ventures Group FTD (2) 37 % $ 73 73 216 LendingTree (3) 27 % 1,098 115 31 Other (4) various NA 81 110 Total Ventures Group 269 357 Consolidated Liberty $ 309 581 The following table presents Liberty's share of earnings (losses) of affiliates: Years ended December 31, 2017 2016 2015 amounts in millions QVC Group HSNi (1) $ 40 48 64 Other (2) (6) (9) Total QVC Group 38 42 55 Ventures Group FTD (2) (146) (41) (83) LendingTree (3) 7 12 2 Other (4) (99) (81) (152) Total Ventures Group (238) (110) (233) Consolidated Liberty $ (200) (68) (178) (1) As discussed in note 5, on December 29, 2017, the Company acquired the approximately 62% of HSNi it did not already own in an all-stock transaction making HSNi a wholly-owned subsidiary, attributed to the QVC Group tracking stock group. Therefore the Company no longer has an equity method investment in HSNi as of December 31, 2017. In addition, HSNi paid dividends of $28 million, $28 million, and $228 million during the years ended December 31, 2017, 2016 and 2015, respectively, which were recorded as reductions to the investment balances, and recorded as a cash inflow from operations in the Cash receipts from returns on equity investments line item in the consolidated statements of cash flows. Dividends from HSNi during the year ended December 31, 2015 included a special dividend of $10 per share from which Liberty received approximately $200 million in cash, which was recorded as a cash inflow from investing activities in the Cash receipts from returns of equity investments line item in the consolidated statements of cash flows. (2) The carrying value of Liberty’s investment in FTD was written down to its fair value (based on the closing price (Level 1)) as of December 31, 2017 and December 31, 2015. (3) During the year ended December 31, 2017, the Company purchased an additional 450 thousand shares of LendingTree common stock (“TREE”). In order to purchase the additional shares, Ventures Holdco, LLC, a wholly owned subsidiary of the Company executed a 2-year postpaid variable forward with a notional value of $110 million. The company pledged 642,850 shares of TREE and purchased the delta underlying of 450,000 shares for $77 million. Changes in the fair value of the derivative are reflected in the Realized and unrealized gains (losses) on financial instruments, net line item in the consolidated statements of operations. For the period ended December 31, 2017, the Company recorded an unrealized loss of $95 million. (4) The Other category for the Ventures Group is comprised of alternative energy investments and other investments. The alternative energy investments generally operate at a loss but provide favorable tax attributes recorded through the income tax (expense) benefit line item in the consolidated statements of operations. During the year ended December 31, 2015, Liberty recorded an impairment of approximately $98 million, based on a discounted cash flow valuation (Level 3), related to one of its alternative energy investments which had underperformed operationally. Investment in Liberty Broadband As discussed in note 2, in connection with the merger of Charter and TWC, on May 18, 2016, Liberty invested $2.4 billion in Liberty Broadband Series C nonvoting shares. As of December 31, 2017, Liberty has a 23.5% economic ownership interest in Liberty Broadband. Due to overlapping boards of directors and management, Liberty has been deemed to have significant influence over Liberty Broadband for accounting purposes, even though Liberty does not have any voting rights. Liberty has elected to apply the fair value option for its investment in Liberty Broadband (Level 1) as it is believed that the Company’s investors value this investment based on the trading price of Liberty Broadband. Liberty recognizes changes in the fair value of its investment in Liberty Broadband in realized and unrealized gains (losses) on financial instruments, net in the consolidated statements of operations. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | (10) Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of goodwill are as follows: QVC zulily HSN Corporate and Other Total amounts in millions Balance at January 1, 2016 $ 5,149 860 — 103 6,112 Acquisition (1) — 57 — — 57 Disposition (2) — — — (78) (78) Foreign currency translation adjustments (39) — — — (39) Balance at December 31, 2016 5,110 917 — 25 6,052 Acquisition (3) — — 933 17 950 Foreign currency translation adjustments 80 — — — 80 Balance at December 31, 2017 $ 5,190 917 933 42 7,082 (1) Subsequent to December 31, 2015, the preliminary purchase price allocation for the zulily acquisition was adjusted, resulting in a $57 million increase to goodwill. (2) As discussed in note 6, Liberty completed the CommerceHub Spin-Off on July 22, 2016, resulting in a $21 million decrease to goodwill. In addition, as discussed in note 6, Liberty completed the Expedia Holdings Split-Off on November 4, 2016, resulting in a $57 million decrease to goodwill related to Bodybuilding. (3) As discussed in note 5, on December 29, 2017, the Company acquired the approximately 62% of HSNi it did not already own in an all-stock transaction making HSNi a wholly-owned subsidiary, attributed to the QVC Group tracking stock group. The acquisition resulted in an increase to goodwill of $950 million. Goodwill recognized from acquisitions primarily relates to assembled workforces, website community and other intangible assets that do not qualify for separate recognition. As presented in the accompanying consolidated balance sheets, trademarks is the other significant indefinite lived intangible asset. Intangible Assets Subject to Amortization Intangible assets subject to amortization are comprised of the following: December 31, 2017 December 31, 2016 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in millions Television distribution rights $ 730 (652) 78 2,279 (2,095) 184 Customer relationships 3,356 (2,626) 730 2,910 (2,394) 516 Other 1,268 (828) 440 965 (660) 305 Total $ 5,354 (4,106) 1,248 6,154 (5,149) 1,005 The weighted average life of these amortizable intangible assets was approximately 9 years, at the time of acquisition. However, amortization is expected to match the usage of the related asset and will be on an accelerated basis as demonstrated in table below. Amortization expense for intangible assets with finite useful lives was $549 million, $703 million and $550 million for the years ended December 31, 2017, 2016 and 2015, respectively. Based on its amortizable intangible assets as of December 31, 2017, Liberty expects that amortization expense will be as follows for the next five years (amounts in millions): 2018 $ 401 2019 $ 236 2020 $ 162 2021 $ 129 2022 $ 77 Impairments As of December 31, 2017 accumulated goodwill impairment losses for certain e-commerce companies was $56 million. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | (11) Debt Debt is summarized as follows: Outstanding principal Carrying value December 31, December 31, December 31, 2017 2017 2016 amounts in millions QVC Group Corporate level notes and debentures 8.5% Senior Debentures due 2029 $ 287 285 285 8.25% Senior Debentures due 2030 504 502 501 Subsidiary level notes and facilities QVC 3.125% Senior Secured Notes due 2019 400 399 399 QVC 5.125% Senior Secured Notes due 2022 500 500 500 QVC 4.375% Senior Secured Notes due 2023 750 750 750 QVC 4.85% Senior Secured Notes due 2024 600 600 600 QVC 4.45% Senior Secured Notes due 2025 600 599 599 QVC 5.45% Senior Secured Notes due 2034 400 399 399 QVC 5.95% Senior Secured Notes due 2043 300 300 300 QVC Bank Credit Facilities 1,763 1,763 1,896 HSNi Bank Credit Facility 460 460 NA Other subsidiary debt 170 170 174 Deferred loan costs — (24) (28) Total QVC Group $ 6,734 6,703 6,375 Ventures Group Corporate level debentures 4% Exchangeable Senior Debentures due 2029 $ 434 316 276 3.75% Exchangeable Senior Debentures due 2030 435 318 267 3.5% Exchangeable Senior Debentures due 2031 328 342 316 0.75% Exchangeable Senior Debentures due 2043 — 2 3 1.75% Exchangeable Senior Debentures due 2046 750 868 805 Total Ventures Group $ 1,947 1,846 1,667 Total consolidated Liberty debt $ 8,681 8,549 8,042 Less debt classified as current (996) (876) Total long-term debt 7,553 7,166 Exchangeable Senior Debentures Each $1,000 debenture of Liberty Interactive LLC’s (“Liberty LLC”) 4% Exchangeable Senior Debentures is exchangeable at the holder's option for the value of 3.2265 shares of Sprint Corporation (“Sprint”) common stock and 0.7860 shares of CenturyLink, Inc. ("CenturyLink") common stock. Liberty LLC may, at its election, pay the exchange value in cash, Sprint and CenturyLink common stock or a combination thereof. Liberty LLC, at its option, may redeem the debentures, in whole or in part, for cash generally equal to the face amount of the debentures plus accrued interest. Each $1,000 debenture of Liberty LLC's 3.75% Exchangeable Senior Debentures is exchangeable at the holder's option for the value of 2.3578 shares of Sprint common stock and 0.5746 shares of CenturyLink common stock. Liberty LLC may, at its election, pay the exchange value in cash, Sprint and CenturyLink common stock or a combination thereof. Liberty, at its option, may redeem the debentures, in whole or in part, for cash equal to the face amount of the debentures plus accrued interest. Each $1,000 debenture of Liberty LLC's 3.5% Exchangeable Senior Debentures (the "Motorola Exchangeables") was exchangeable at the holder's option for the value of 5.2598 shares of Motorola Solutions, Inc. and 4.6024 shares of Motorola Mobility Holdings, Inc., as a result of Motorola Inc.'s separation of Motorola Mobility Holdings, Inc. ("MMI") in a 1 for 8 stock distribution, and the subsequent 1 for 7 reverse stock split of Motorola, Inc. (which has been renamed Motorola Solutions, Inc. ("MSI")), effective January 4, 2011. MMI was acquired on May 22, 2012 for $40 per share in cash. Pursuant to the indenture, the cash paid to shareholders in the MMI acquisition was to be paid to the holders of the Motorola Exchangeables as an extraordinary distribution. Liberty LLC made a cash payment of $184.096 per debenture in the second quarter of 2012 for a total payment of $111 million. The remaining exchange value is payable, at Liberty's option, in cash or MSI stock or a combination thereof. Liberty LLC, at its option, may redeem the debentures, in whole or in part, for cash generally equal to the adjusted principal amount of the debentures plus accrued interest. As a result of a cash distribution made by Liberty LLC in 2007, the cash disbursement discussed above and various principal payments made to holders of the Motorola Exchangeables, the adjusted principal amount of each $1,000 debenture is $547 as of December 31, 2017. Each $1,000 original principal amount of the 0.75% Exchangeable Senior Debentures due 2043 is exchangeable for a basket of 3.1648 shares of common stock of Charter, 5.1635 shares of common stock of Time Warner and 0.6454 shares of Time, Inc., which may change over time to include other publicly traded common equity securities that may be distributed on or in respect of those shares of Charter and Time Warner (or into which any of those securities may be converted or exchanged). This basket of shares for which each Debenture in the original principal amount of $1,000 may be exchanged is referred to as the Reference Shares attributable to such Debenture, and to each issuer of Reference Shares as a reference company. Each Debenture is exchangeable at the option of the holder at any time, upon which they will be entitled to receive the Reference Shares attributable to such Debenture or, at the election of Liberty LLC, cash or a combination of Reference Shares and cash having a value equal to such Reference Shares. Upon exchange, holders will not be entitled to any cash payment representing accrued interest or outstanding additional distributions. Subsequent to December 31, 2017, an extraordinary additional distribution was made to the holders of the 0.75% Exchangeable Senior Debentures due 2043 in the amount of $11.9399 per $1,000 original principal of the debentures, which is attributable to the cash consideration of $18.50 per share paid to former holders of common stock of Time Inc. on January 31, 2018, in connection with the acquisition of Time Inc. by Meredith Corporation. The Company expects to pay the extraordinary additional distribution on March 1, 2018, to holders of record of the 0.75% Exchangeable Senior Debentures due 2043 on February 14, 2018, the special record date for the extraordinary additional distribution. During the year ended December 31, 2016, holders exchanged, under the terms of the debentures, approximately $523 million principal of the 0.75% Exchangeable Senior Debentures due 2043 and Liberty made cash payments of approximately $1,181 million to settle the obligations. In addition, in conjunction with the Liberty Broadband transaction (see note 9), an extraordinary distribution of approximately $325 million was paid to holders of the 0.75% Exchangeable Senior Debentures due 2043. In August 2016, Liberty issued $750 million principal amount of new senior exchangeable debentures due September 2046 which bear interest at an annual rate of 1.75%. Each $1,000 debenture is exchangeable at the holder’s option for the value of 2.9317 shares of Charter Class A common stock. Liberty may, at its election, pay the exchange value in cash, Charter Class A common stock or a combination thereof. The number of shares of Charter Class A common stock attributable to a debenture represents an initial exchange price of approximately $341.10 per share. On October 5, 2023, Liberty, at its option, may redeem the debentures, in whole or in part, for cash generally equal to the face amount of the debentures plus accrued interest. Liberty has elected to account for all of its Exchangeables using the fair value option. Accordingly, changes in the fair value of these instruments are recognized as unrealized gains (losses) in the statements of operations. Liberty will review the triggering events on a quarterly basis to determine whether a triggering event has occurred to require current classification of certain Exchangeables, see additional discussion below. Liberty has sold, split-off or otherwise disposed of all of its shares of MSI, Sprint and CenturyLink common stock which underlie the respective Exchangeable Senior Debentures. Because such exchangeable debentures are exchangeable at the option of the holder at any time and Liberty can no longer use owned shares to redeem the debentures, Liberty has classified for financial reporting purposes the portion due 2043 of the debentures that could be redeemed for cash as a current liability. Exchangeable Senior Debentures classified as current totaled $978 million at December 31, 2017. Although such amount has been classified as a current liability for financial reporting purposes, the Company believes the probability that the holders of such instruments will exchange a significant principal amount of the debentures prior to maturity is unlikely. Interest on the Company's exchangeable debentures is payable semi-annually based on the date of issuance. At maturity, all of the Company's exchangeable debentures are payable in cash. Senior Debentures Interest on the 8.5% Senior Debentures due 2029 and the 8.25% Senior Debentures due 2030 (the “Senior Debentures”) is payable semi-annually based on the date of issuance. The Senior Debentures are stated net of an aggregate unamortized discount of $4 million at December 31, 2017 and $5 million at December 31, 2016. Such discount is being amortized to interest expense in the accompanying consolidated statements of operations. QVC Senior Secured Notes On March 18, 2014, QVC issued $400 million principal amount of 3.125% Senior Secured Notes due 2019 at an issue price of 99.828% and $600 million principal amount of 4.85% Senior Secured Notes due 2024 at an issue price of 99.927% (collectively, the “March Notes”). The March Notes are secured by the capital stock of QVC and certain of QVC’s subsidiaries and have equal priority to QVC’s senior secured credit facility. The net proceeds from the March Notes offerings were used to repay indebtedness under QVC’s senior secured credit facility and for working capital and other general corporate purposes. On August 21, 2014, QVC issued $600 million principal amount of 4.45% Senior Secured Notes due 2025 at an issue price of 99.860% and $400 million principal amount 5.45% Senior Secured Notes due 2034 at an issue price of 99.784% (collectively, the “August Notes”). The August Notes are secured by the capital stock of QVC and certain of QVC’s subsidiaries and have equal priority to QVC’s senior secured credit facility. During prior years, QVC issued $500 million principal amount of 7.375% Senior Secured Notes due 2020 at par, $500 million principal amount of 5.125% Senior Secured Notes due 2022 at par, $750 million principal amount of 4.375% Senior Secured Notes due 2023 at par and $300 million principal amount of 5.95% Senior Secured Notes due 2043 at par. On April 15, 2015, QVC completed the redemption of $500 million principal amount of its 7.375% Senior Secured Notes due 2020, whereby holders received consideration of $1,036.88 for each $1,000 of principal tendered. As a result of the redemption, a $21 million extinguishment loss is included in other, net in the accompanying consolidated statement of operations for the year ended December 31, 2015. QVC Bank Credit Facilities On March 9, 2015, QVC amended and restated its senior secured credit facility, which is a multi-currency facility that provided for a $2.25 billion revolving credit facility with a $250 million sub-limit for standby letters of credit and $1.5 billion of uncommitted incremental revolving loan commitments or incremental term loans. On June 23, 2016, QVC amended and restated its senior secured credit facility (the “Third Amended and Restated Credit Agreement”) with zulily as co-borrower (the “Borrowers”). The Third Amended and Restated Credit Agreement is a multi-currency facility that provides for a $2.65 billion revolving credit facility, with a $300 million total sub-limit for standby letters of credit and $1.5 billion of uncommitted incremental revolving loan commitments or incremental term loans. The Third Amended and Restated Credit Agreement includes a $400 million tranche that may be borrowed by QVC or zulily, with an additional $50 million sub-limit for standing letters of credit. The remaining $2.25 billion and any incremental loans may be borrowed only by QVC. The borrowers may elect that the loans extended under the senior secured credit facility bear interest at a rate per annum equal to the ABR or LIBOR, as each is defined in the senior secured credit facility agreement, plus a margin of 0.25% to 1.75% depending on various factors. Each loan may be prepaid in whole or in part without penalty other than customary breakage costs. No mandatory prepayments are required other than when borrowings and letter of credit usage exceed availability; provided that, if zulily ceases to be controlled by Liberty, all of its loans must be repaid and its letters of credit cash collateralized. Any amounts prepaid on the revolving facility may be reborrowed. The facility matures on June 23, 2021, except that $140 million of the $2.25 billion commitment available to QVC matures on March 9, 2020. Borrowings under the facility may be accelerated following certain customary events of default. The purpose of the amendment was to, among other things, extend the maturity of QVC’s senior secured credit facility, provide zulily the opportunity to borrow on the senior secured credit facility and lower the interest rate on borrowings. The payment and performance of the borrowers’ obligations (including zulily’s obligations) under the Third Amended and Restated Credit Agreement are guaranteed by each of QVC’s Material Domestic Subsidiaries (as defined in the Third Amended and Restated Credit Agreement). Further, the borrowings under the Third Amended and Restated Credit Agreement are secured, pari passu with QVC’s existing notes, by a pledge of all of QVC’s equity interests. In addition, the payment and performance of the borrowers’ obligations with respect to the $400 million tranche available to both QVC and zulily are also guaranteed by zulily and secured by a pledge of all of zulily’s equity interests. The Third Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including certain restrictions on QVC and zulily and each of their restricted subsidiaries (subject to certain exceptions) with respect to, among other things: incurring additional indebtedness; creating liens on property or assets; making certain loans or investments; selling or disposing of assets; paying certain dividends and other restricted payments; dissolving, consolidating or merging; entering into certain transactions with affiliates; entering into sale or leaseback transactions; restricting subsidiary distributions; limiting QVC’s consolidated leverage ratio, which is defined in QVC’s senior secured credit facility as QVC’s consolidated total debt to Adjusted OIBDA ratio for the most recent four fiscal quarter period; and limiting the borrowers’ combined consolidated leverage ratio, which is defined in QVC’s senior secured credit facility as QVC and zulily’s combined debt to Adjusted OIBDA ratio for the most recent four fiscal quarter period. Liberty defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). The interest rate on borrowings outstanding under the Third Amended and Restated Credit Agreement was 3.0% at December 31, 2017. Availability under the Third Amended and Restated Credit Agreement at December 31, 2017 was $877 million, net of $10 million of standby letters of credit. QVC Interest Rate Swap Arrangement During the year ended December 31, 2016, QVC entered into a three-year interest rate swap arrangement with a notional amount of $125 million to mitigate the interest rate risk associated with interest payments related to its variable rate debt. The swap arrangement does not qualify as a cash flow hedge under GAAP. Accordingly, changes in the fair value of the swap are reflected in Realized and unrealized gains or losses on financial instruments, net in the accompanying consolidated statements of operations. HSNi Bank Credit Facility On January 27, 2015, HSNi entered into a $1.25 billion five-year syndicated credit agreement ("Credit Agreement") which is secured by 100% of the voting equity securities of HSNi's U.S. subsidiaries and 65% of HSNi's first-tier foreign subsidiaries. Certain HSNi subsidiaries have unconditionally guaranteed HSNi's obligations under the Credit Agreement. The Credit Agreement, which included a $750 million revolving credit facility and a $500 million term loan, could be increased up to $1.75 billion subject to certain conditions and was set to expire on January 27, 2020. On December 29, 2017, the Credit Agreement was amended, the outstanding balance on the term loan was repaid, and the revolving credit facility was increased to $1 billion. The maturity of the revolving credit facility was extended to December 29, 2022. Loans under the amended Credit Agreement bear interest at a per annum rate equal to LIBOR plus a predetermined margin that ranges from 1.25% to 1.75% or the Base Rate (as defined in the Credit Agreement) plus a predetermined margin that ranges from 0.25% to 0.75%. HSNi pays a commitment fee ranging from 0.20% to 0.30% (based on the leverage ratio) on the unused portion of the revolving credit facility. The Credit Agreement includes various covenants, limitations and events of default customary for similar facilities including a maximum leverage ratio of 3.50x (as defined in the Credit Agreement). The interest rate on the $460 million outstanding long-term debt balance as of December 31, 2017 was 3.07%. The amount available to HSNi under the revolving credit facility portion of the Credit Agreement is reduced by the amount of outstanding letters of credit issued under the revolving credit facility, which totaled $7 million as of December 31, 2017. The ability to draw funds under the revolving credit facility is dependent upon meeting the aforementioned financial covenants. As of December 31, 2017, the amount that could be borrowed under the revolving credit facility, after consideration of the financial covenants and the outstanding letters of credit, was approximately $533 million . HSNi Interest Rate Swap Arrangement HSNi has an outstanding interest rate swap that effectively converts $250 million of its variable rate bank credit facility to a fixed rate of 1.05% with a maturity date in January 2020 (the swapped fixed rate is exclusive of the credit spread under the Credit Agreement). Based on HSNi's leverage ratio as of December 31, 2017, the all-in fixed rate was 2.3525%. The interest rate swaps were previously designated and qualified as cash flow hedges; therefore, the effective portions of the changes in fair value were recorded in accumulated other comprehensive income (loss). Going forward the Company will account for the interest rate swaps at fair value with changes recorded through unrealized gain (loss). Other Subsidiary Debt Other subsidiary debt at December 31, 2017 is comprised of capitalized satellite transponder lease obligations. Debt Covenants Liberty, QVC and other subsidiaries were in compliance with all debt covenants at December 31, 2017. Five Year Maturities The annual principal maturities of Liberty's debt, based on stated maturity dates, for each of the next five years is as follows (amounts in millions): 2018 $ 24 2019 $ 425 2020 $ 23 2021 $ 1,786 2022 $ 980 Fair Value of Debt Liberty estimates the fair value of its debt based on the quoted market prices for the same or similar issues or on the current rate offered to Liberty for debt of the same remaining maturities. The fair value, based on quoted prices of instruments not considered to be active markets (Level 2), of Liberty's publicly traded debt securities that are not reported at fair value in the accompanying consolidated balance sheets is as follows (amounts in millions): December 31, 2017 2016 Senior debentures $ 866 853 QVC senior secured notes $ 3,636 3,496 Due to the variable rate nature, Liberty believes that the carrying amount of its subsidiary debt not discussed above approximated fair value at December 31, 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | (12) Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) providing bonus depreciation that will allow for full expensing of qualified property; (3) creating a new limitation on deductible interest expense; (4) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (5) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; (6) adding limitations on the deductibility of certain executive compensation; and (7) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years . The SEC issued guidance on accounting for the tax effects of the Tax Act. The Company must reflect the income tax effects of those aspects of the Tax Act for which the accounting is known. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements and the Tax Act provides a measurement period that should not extend beyond one year from the Tax Act enactment date. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the tax laws that were in effect immediately before the enactment of the Tax Act. The corporate rate reduction was applied to our inventory of deferred tax assets and deferred tax liabilities which resulted in the net tax benefit in the period ended December 31, 2017. The Company has determined a reasonable estimate for these amounts, and based on a continued analysis of the estimates and further guidance and interpretations on the application of the law, additional revisions may occur, and may be material, throughout the allowable measurement period. Income tax benefit (expense) consists of: Years ended December 31, 2017 2016 2015 amounts in millions Current: Federal $ (61) (40) (188) State and local (23) (12) (26) Foreign (88) (73) (74) $ (172) (125) (288) Deferred: Federal $ 1,266 (444) 74 State and local (130) (33) 21 Foreign — 4 8 1,136 (473) 103 Income tax benefit (expense) $ 964 (598) (185) The following table presents a summary of our domestic and foreign earnings from continuing operations before income taxes: Years ended December 31, 2017 2016 2015 amounts in millions Domestic $ 1,314 1,684 674 Foreign 209 168 142 Total $ 1,523 1,852 816 Income tax benefit (expense) differs from the amounts computed by applying the U.S. federal income tax rate of 35% as a result of the following: Years ended December 31, 2017 2016 2015 amounts in millions Computed expected tax benefit (expense) $ (533) (649) (286) State and local income taxes, net of federal income taxes (26) (26) (15) Foreign taxes, net of foreign tax credits (32) (9) (5) Dividends received deductions 10 9 51 Alternative energy tax credits and incentives 85 94 61 Change in valuation allowance affecting tax expense (101) (16) 6 Change in tax rate due to Tax Act 1,485 — — Change in state tax rate (84) 1 (7) Consolidation of equity investment 138 — — Other, net 22 (2) 10 Income tax benefit (expense) $ 964 (598) (185) For the year ended December 31, 2017 the significant reconciling items are net tax benefits for the effect of the change in the U.S. federal corporate tax rate from 35% to 21% on deferred taxes, the tax-free consolidation of our equity method investment in HSNi, and tax benefits derived from Liberty’s alternative energy tax credits and incentives, partially offset by net tax expense for an increase in the Company’s valuation allowance and an increase in the Company’s state effective tax rate used to measure deferred taxes. The Company has also evaluated the impact of the one-time mandatory repatriation provision of the Tax Act. Under that provision, earnings and profits of certain of the Company’s foreign subsidiaries not previously subjected to US tax could be subjected to US tax in 2017 at reduced rates. The Tax Act allows that earnings and profits deficits of certain subsidiaries may be used to offset the surpluses in others in computing the amount subject to the tax under the mandatory repatriation provision. The Company has performed an evaluation of its earnings and profits of its foreign subsidiaries and estimates that deficits in some of the subsidiaries offset the surpluses in others so that no amount is subject to the mandatory repatriation provision of the Tax Act. Income tax expense was lower than the U.S. statutory tax rate of 35% in 2016 due to tax benefits derived from Liberty’s alternative energy tax credits and incentives. Income tax expense was lower than the U.S. statutory tax rate of 35% in 2015 due to the receipt of taxable dividends that are subject to a dividends received deduction. The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: December 31, 2017 2016 amounts in millions Deferred tax assets: Net operating and capital loss carryforwards $ 160 123 Foreign tax credit carryforwards 98 134 Accrued stock compensation 51 56 Other accrued liabilities 19 118 Other future deductible amounts 190 144 Deferred tax assets 518 575 Valuation allowance (165) (64) Net deferred tax assets 353 511 Deferred tax liabilities: Investments 903 1,057 Intangible assets 1,188 1,540 Discount on exchangeable debentures 981 1,404 Deferred gain on debt retirements 43 129 Other 41 17 Deferred tax liabilities 3,156 4,147 Net deferred tax liabilities $ 2,803 3,636 The Company's valuation allowance increased $101 million in 2017. The entire change in valuation allowance affected tax expense and is primarily the result of new provisions in the Tax Act that changed the Company’s judgment with respect to the future utilization of its foreign tax credit carryforward. At December 31, 2017, the Company had net operating losses (on a tax effected basis), federal business tax credits and foreign tax credit carryforwards for income tax purposes aggregating approximately $160 million, $31 million and $98 million, respectively, which will begin to expire in 2017 and beyond if not utilized to reduce domestic, state or foreign income tax liabilities in future periods. The net operating losses are expected to be utilized prior to expiration, except for $67 million. The federal business tax credits are expected to be utilized prior to expiration. As a result of the international provisions in the Tax Act, the Company estimates that $98 million of its foreign tax credit carryforward will expire without utilization. A reconciliation of unrecognized tax benefits is as follows: Years ended December 31, 2017 2016 2015 amounts in millions Balance at beginning of year $ 72 104 136 Additions based on tax positions related to the current year 10 16 14 Additions for tax positions of prior years 4 — — Reductions for tax positions of prior years — (26) (12) Lapse of statute and settlements (15) (22) (34) Balance at end of year $ 71 72 104 As of December 31, 2017, 2016 and 2015, the Company had recorded tax reserves of $71 million, $72 million and $104 million, respectively, related to unrecognized tax benefits for uncertain tax positions. If such tax benefits were to be recognized for financial statement purposes, $60 million, $50 million and $47 million for the years ended December 31, 2017, 2016 and 2015, respectively, would be reflected in the Company's tax expense and affect its effective tax rate. Liberty's estimate of its unrecognized tax benefits related to uncertain tax positions requires a high degree of judgment. The Company has tax positions for which the amount of related unrecognized tax benefits could change during 2018. The amount of unrecognized tax benefits related to these issues could change as a result of potential settlements, lapsing of statute of limitations and revisions of estimates. It is reasonably possible that the amount of the Company's gross unrecognized tax benefits may decrease within the next twelve months by up to $3 million. As of December 31, 2017, the Company's tax years prior to 2014 are closed for federal income tax purposes, and the IRS has completed its examination of the Company's 2014 tax year. The Company's 2015, 2016 and 2017 tax years are being examined currently as part of the IRS's Compliance Assurance Process ("CAP") program. Various states are currently examining the Company's prior years state income tax returns. Certain QVC subsidiaries are currently under audit in Germany for 2012 through 2014. The Company recorded $17 million of accrued interest and penalties related to uncertain tax positions as of each of December 31, 2017, 2016 and 2015. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | (13) Stockholders' Equity Preferred Stock Liberty's preferred stock is issuable, from time to time, with such designations, preferences and relative participating, optional or other rights, qualifications, limitations or restrictions thereof, as shall be stated and expressed in a resolution or resolutions providing for the issue of such preferred stock adopted by Liberty's Board of Directors. As of December 31, 2017, no shares of preferred stock were issued. Common Stock Series A QVC Group and Liberty Ventures common stock has one vote per share, and Series B QVC Group and Liberty Ventures common stock has ten votes per share. Each share of the Series B common stock is exchangeable at the option of the holder for one share of Series A common stock of the same group. The Series A and Series B common stock participate on an equal basis with respect to dividends and distributions. At the Annual Meeting of Stockholders held on June 2, 2015, the Company’s stockholders approved an amendment to the Restated Certificate of Incorporation that increased (i) the total number of shares of the Company’s capital stock which the Company will have the authority to issue to 9,015 million shares, (ii) the number of shares of the Company’s capital stock designated as “Common Stock” to 8,965 million shares and (iii) the number of shares of Common Stock designated as “Series A Liberty Ventures Common Stock,” “Series B Liberty Ventures Common Stock” and “Series C Liberty Ventures Common Stock” to 400 million shares, 15 million shares and 400 million shares, respectively. As of December 31, 2017, Liberty reserved for issuance upon exercise of outstanding stock options approximately 32.4 million shares of Series A QVC Group common stock and approximately 1.6 million shares of Series B QVC Group common stock. As of December 31, 2017, Liberty reserved for issuance upon exercise of outstanding stock options approximately 1.7 million shares of Series A Liberty Ventures common stock and approximately 1.1 million shares of Series B Liberty Ventures common stock. In addition to the Series A and Series B QVC Group and Ventures common stock, there are 4 billion and 400 million shares of Series C QVC Group and Ventures common stock authorized for issuance, respectively. As of December 31, 2017, no shares of any Series C QVC Group and Ventures common stock were issued or outstanding. On October 1, 2015, in conjunction with the acquisition of zulily, Liberty issued 38.5 million shares of Series A QVC Group common stock. On December 29, 2017, in conjunction with the acquisition of HSNi, Liberty issued 53.6 million shares of Series A QVC Group common stock. See additional discussion about both acquisitions in note 5. Additionally, as discussed in note 1, on November 4, 2016, Liberty completed the Expedia Holdings Split-Off. The Expedia Holdings Split-Off was accomplished by the redemption of (i) 0.4 of each outstanding share of Liberty’s Series A Liberty Ventures common stock for 0.4 of a share of Expedia Holdings Series A common stock and (ii) 0.4 of each outstanding share of Liberty’s Series B Liberty Ventures common stock for 0.4 of a share of Expedia Holdings Series B common stock, in each case, with cash paid in lieu of any fractional shares of Liberty Ventures common stock or Expedia Holdings common stock (after taking into account all of the shares owned of record by each holder thereof, as applicable). Purchases of Common Stock During the year ended December 31, 2015, the Company repurchased 28,134,498 shares of Series A QVC Group common stock for aggregate cash consideration of $785 million. During the year ended December 31, 2016, the Company repurchased 34,836,196 shares of Series A QVC Group common stock for aggregate cash consideration of $799 million. During the year ended December 31, 2017, the Company repurchased 34,765,751 shares of Series A QVC Group common stock for aggregate cash consideration of $766 million. All of the foregoing shares were repurchased pursuant to a previously announced share repurchase program and have been retired and returned to the status of authorized and available for issuance. In connection with the Expedia Holdings Split-Off, holders of Liberty Ventures common stock were paid cash in lieu of fractional shares of Series A and Series B Liberty Ventures common stock. In order to fund the cash payments made to holders of shares of Series B Liberty Ventures common stock, the fractional shares that would have otherwise been issued to those holders were aggregated into an immaterial number of shares of Series B Liberty Ventures common stock by the Company’s transfer agent and were repurchased by Liberty. |
Transactions with Officers and
Transactions with Officers and Directors | 12 Months Ended |
Dec. 31, 2017 | |
Transactions with Officers and Directors [Abstract] | |
Transactions with Officers and Directors | (14) Related Party Transactions with Officers and Directors Chief Executive Officer Compensation Arrangement In December 2014, the Compensation Committee of Liberty approved a compensation arrangement, including term options discussed in note 15, for its President and Chief Executive Officer (the "CEO"). The arrangement provides for a five year employment term beginning January 1, 2015 and ending December 31, 2019, with an annual base salary of $960,750, increasing annually by 5% of the prior year's base salary, and an annual target cash bonus equal to 250% of the applicable year's annual base salary. The arrangement also provides that, in the event the CEO is terminated for "cause," he will be entitled only to his accrued base salary and any amounts due under applicable law and he will forfeit all rights to his unvested term options. If, however, the CEO is terminated by Liberty without cause or if he terminates his employment for “good reason,” the arrangement provides for him to receive his accrued base salary, his accrued but unpaid bonus and any amounts due under applicable law, a severance payment of 1.5 times his base salary during the year of his termination, a payment equal to $11.75 million pro rated based upon the elapsed number of days in the calendar year of termination, a payment equal to $17.5 million, and for his unvested term options to generally vest pro rata based on the portion of the term elapsed through the termination date plus 18 months and for all vested and accelerated options to remain exercisable until their respective expiration dates. If the CEO terminates his employment without “good reason,” he will be entitled to his accrued base salary, his accrued but unpaid bonus and any amounts due under applicable law and a payment of the $11.75 million and for his unvested term options to generally vest pro rata based on the portion of the term elapsed through the termination date and all vested and accelerated options to remain exercisable until their respective expiration dates. Lastly, in the case of the CEO's death or his disability, the arrangement provides that he will be entitled only to his accrued base salary and any amounts due under applicable law, a payment of 1.5 times his base salary during that year, a payment equal to $11.75 million pro rated based upon the elapsed number of days in the calendar year of termination, a payment equal to $17.5 million and for his unvested term options to fully vest and for his vested and accelerated term options to remain exercisable until their respective expiration dates. Pursuant to the CEO’s compensation arrangement, he will receive aggregate target equity awards to be allocated between Liberty and Liberty Media in the amounts of $16 million with respect to calendar year 2015, $17 million with respect to calendar year 2016, $18 million with respect to calendar year 2017, $19 million with respect to calendar year 2018 and $20 million with respect to calendar year 2019. Such target equity awards are comprised of options to purchase shares of QVCB and LVNTB, along with performance-based restricted stock units (“Performance RSUs”). Vesting of the Performance RSUs is determined based on satisfaction of performance metrics that are set by Liberty and Liberty Media’s respective compensation committees in the first quarter of each applicable year, except that the CEO will forfeit his unvested Performance RSUs if his employment is terminated for any reason before the end of the applicable year. In addition, Liberty and Liberty Media’s compensation committees may grant additional equity awards, with a value of up to 50% of the target amount allocated to Liberty for the relevant year (the “Above Target Awards”), and the compensation committees may determine to establish additional performance metrics with respect to such Above Target Awards. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | (15) Stock-Based Compensation Liberty - Incentive Plans Pursuant to the Liberty Interactive 2016 Omnibus Incentive Plan (the “2016 Plan”), the Company may grant stock options (“Awards”) to be made in respect of a maximum of 39.9 million shares of Series A and Series B QVC Group common stock and Liberty Ventures common stock. Awards generally vest over 4-5 years and have a term of 7-10 years. Liberty issues new shares upon exercise of equity awards. In connection with the HSNi acquisition in December 2017 (see note 5), outstanding awards to purchase shares of HSNi common stock (an “HSN Award”) were exchanged for awards to purchase shares of Series A QVC Group common stock (a “QVCA Award”). The exercise prices and number of shares subject to the QVCA Award were determined based on (1) the exercise prices and number of shares subject to the HSN Award and (2) the acquisition exchange ratio. The exchange of such awards was considered a modification under ASC 805 – Business Combinations . A portion of the fair value of the replacement QVCA Awards was attributed to the consideration paid in the acquisition. The remaining portion of the fair value will be recognized in the consolidated financial statements over the remaining vesting period of each individual award. In connection with the Expedia Holdings Split-Off in November 2016, the holder of an outstanding award to purchase shares of Liberty Ventures Series A and Series B common stock (a “Liberty Ventures Award”) received an Award to purchase shares of the corresponding series of Expedia Holdings common stock and an adjustment to the exercise price and number of shares subject to the Liberty Ventures Award (as so adjusted, an “Adjusted Liberty Ventures Award”). Following the Expedia Holdings Split-Off, employees of Liberty hold Awards in both Liberty Ventures common stock and Expedia Holdings common stock. The compensation expense relating to employees of Liberty is recorded at Liberty. In connection with the CommerceHub Spin-Off in July 2016, the holder of an outstanding award to purchase shares of Liberty Ventures Series A and Series B common stock (an “Original Liberty Ventures Award”) received an adjustment to the exercise price and number of shares subject to the Original Liberty Ventures Award (as so adjusted, an “Adjusted Liberty Ventures Award”). A holder of an Original Liberty Ventures Award who was a member of the board of directors or an officer of Liberty holding the position of Vice President or above also received an Award to purchase shares of the corresponding series of CommerceHub common stock as well as Series C CommerceHub common stock (in each case, a “CommerceHub Award”). Following the CommerceHub Spin-Off, employees of Liberty may hold Awards in both Liberty Ventures common stock and CommerceHub common stock. The compensation expense relating to employees of Liberty is recorded at Liberty. Liberty – Grants The following table presents the number and weighted average grant-date fair value (“GDFV”) of options granted by Liberty during the years ended December 31, 2017, 2016 and 2015: For the Years ended December 31, 2017 2016 2015 Options Granted (000's) Weighted Average GDFV Options Granted (000's) Weighted Average GDFV Options Granted (000's) Weighted Average GDFV Series A QVC Group common stock, QVC employees (1) 3,115 $ 7.86 2,860 $ 7.84 2,002 $ 11.87 Series A QVC Group common stock, zulily employees (1) 483 $ 7.86 433 $ 7.57 264 $ 9.84 Series A QVC Group common stock, Liberty employees and directors (2) 518 $ 7.81 421 $ 8.02 2,459 $ 11.63 Series A QVC Group common stock, QVC CEO (3) NA NA NA NA 1,680 $ 10.40 Series B QVC Group common stock, Liberty CEO (4) 154 $ 7.92 730 $ 7.47 132 $ 10.10 Series A Ventures Group common stock, Liberty employees and directors (2) 188 $ 16.52 114 $ 12.25 683 $ 18.10 Series B Ventures Group common stock, Liberty CEO (4) 269 $ 15.41 209 $ 12.48 135 $ 16.94 (1) Mainly vests semi-annually over four years. (2) Mainly vests between three and five years for employees and in one year for directors. (3) Vests 50% on each of December 31, 2019 and 2020. Grant was made in connection with a new compensation arrangement. (4) Grants in 2017 and 2016 cliff vested at the end of their respective grant year; grant in 2015 cliff vested in March 2016. Grants were made in connection with his employment agreement (see note 14). In connection with the Option Exchange (see below), Liberty granted 5.9 million, 946 thousand and 1.1 million options to purchase shares of Series A QVC Group common stock, Series A Liberty Ventures common stock and Series B Liberty Ventures common stock, respectively. Such options had an incremental weighted average GDFV of $3.49, $8.53 and $6.94, respectively. In addition to the stock option grants to the Liberty CEO, Liberty granted performance-based restricted stock units ("RSUs") of Series B QVC Group common stock in 2017, 2016 and 2015 of 115 thousand, 53 thousand and 182 thousand, respectively. The RSUs had a fair value of $19.90, $25.11 and $29.41 per share, respectively, at the time they were granted. Liberty also granted performance-based RSUs of Series B Liberty Ventures common stock in 2016 and 2015 of 16 thousand and 13 thousand, respectively. The RSUs had a fair value of $38.79 and $42.33 per share, respectively, at the time they were granted. The 2017, 2016 and 2015 performance-based RSUs cliff vested in one year, subject to the satisfaction of certain performance objectives and based on an amount determined by the compensation committee. During the fourth quarter of 2017, the Company entered into a series of transactions with certain officers of Liberty, associated with certain outstanding stock options, in order to recognize tax deductions in the current year versus future years (the “Option Exchange”). On December 26, 2017 (the “Grant Date”), pursuant to the approval of the Compensation Committee of its Board of Directors, the Company effected the acceleration of (i) each unvested in-the-money option to acquire shares of LVNTA and (ii) each unvested in-the-money option to acquire shares of LVNTB, in each case, held by certain of its officers (collectively, the “Eligible Optionholders”). Following this acceleration, also on the Grant Date, each Eligible Optionholder exercised, on a net settled basis, all of his outstanding in-the-money vested and unvested options to acquire QVCA shares, LVNTA shares and LVNTB shares (the “Eligible Options”), and: · with respect to each vested Eligible Option, the Company granted the Eligible Optionholder a vested new option with substantially the same terms and conditions as the exercised vested Eligible Option, except that the exercise price for the new option is, in the case of options to acquire shares of QVCA or LVNTA, the closing price on the Grant Date per QVCA or LVNTA share, as applicable, and, in the case of options to acquire shares of LVNTB, the fair market value on the Grant Date of the LVNTB shares as determined pursuant to the incentive plan under which the awards were granted; and · with respect to each unvested Eligible Option: o in satisfaction of the exercise, on a net settled basis, of the unvested Eligible Options, the Company granted the Eligible Optionholder a number of restricted LVNTA or LVNTB shares (the “Restricted Shares”) with a vesting schedule identical to that of the unvested Eligible Options so exercised, and the Eligible Optionholder made an election under Section 83(b) of the Internal Revenue Code with respect to such Restricted Shares; and o the Company granted the Eligible Optionholder a new option (the “Unvested New Option”) to acquire the same series of common stock and with substantially the same terms and conditions, including with respect to vesting and expiration, as the unvested Eligible Option exercised as set forth above, except that the number of LVNTA or LVNTB shares subject to such Unvested New Option is equal to the number of shares subject to the unvested Eligible Option minus the number of Restricted Shares received upon exercise of such unvested Eligible Option. The exercise price of such new option is, in the case of a LVNTA option, the closing price on the Grant Date per share of LVNTA, or, in the case of a LVNTB option, the fair market value on the Grant Date of the LVNTB shares as determined pursuant to the incentive plan under which the Unvested New Options were granted. The Option Exchange was considered a modification under ASC 718 – Stock Compensation, with the following impacts on compensation expense. The unamortized value of the unvested Eligible Options that were exercised, which was $14 million for LVNTA and LVNTB combined, will be expensed over the vesting period of the Restricted Shares attributable to the exercise of those options. The grant of new vested options resulted in incremental compensation expense in the fourth quarter of 2017 of $30 million for QVCA, LVNTA and LVNTB combined. The grant of Unvested New Options resulted in incremental compensation expense totaling $6 million for LVNTA and LVNTB combined, which will be amortized over the vesting periods of those options. The Company has calculated the GDFV for all of its equity classified awards using the Black-Scholes-Merton Model. The Company estimates the expected term of the Awards based on historical exercise and forfeiture data. For grants made in 2017, 2016 and 2015, the range of expected terms was 2.0 to 6.7 years. The volatility used in the calculation for Awards is based on the historical volatility of Liberty's stocks and the implied volatility of publicly traded Liberty options. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options. The following table presents the range of volatilities used by Liberty in the Black-Scholes-Merton Model for the 2017, 2016 and 2015 QVC Group and Liberty Ventures grants. Volatility 2017 grants QVC Group options 26.9 % - 32.7 % Liberty Ventures options 25.9 % - 28.9 % 2016 grants QVC Group options 27.4 % - 27.4 % Liberty Ventures options 30.6 % - 30.6 % 2015 grants QVC Group options 27.4 % - 39.7 % Liberty Ventures options 30.6 % - 42.4 % Liberty - Outstanding Awards The following table presents the number and weighted average exercise price ("WAEP") of the Awards to purchase QVC Group and Liberty Ventures common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the Awards. QVC Group Series A Series B Weighted Aggregate Weighted Aggregate average intrinsic average intrinsic Awards remaining value Awards remaining value (000's) WAEP life (in millions) (000's) WAEP life (in millions) Outstanding at January 1, 2017 29,585 $ 20.80 1,489 $ HSNi Acquisition 3,635 $ 26.22 — $ — Granted 4,116 $ 23.82 154 $ 23.87 Exercised (3,611) $ 16.34 — $ — Forfeited/Cancelled (1,364) $ 27.23 — $ — Option Exchange, Exercised (5,931) $ 17.76 — $ — Option Exchange, Granted 5,931 $ 25.74 — $ — Outstanding at December 31, 2017 32,361 $ 23.48 4.0 years $ 86 1,643 $ 4.8 years $ — Exercisable at December 31, 2017 20,286 $ 22.66 3.2 years $ 71 997 $ 25.40 4.3 years $ — Liberty Ventures Series A Series B Weighted Aggregate Weighted Aggregate average intrinsic average intrinsic Awards remaining value Awards remaining value (000's) WAEP life (in millions) (000's) WAEP life (in millions) Outstanding at January 1, 2017 1,974 $ 22.18 987 $ 35.02 Granted 188 $ 55.42 269 $ 52.39 Exercised (451) $ 16.69 — $ — Forfeited/Cancelled (12) $ 38.50 — $ — Option Exchange, Exercised (975) $ 20.99 (1,256) $ 38.74 Option Exchange, Granted 946 $ 55.96 1,080 $ 56.38 Outstanding at December 31, 2017 1,670 $ 47.12 2.6 years $ 14 1,080 $ 56.38 4.7 years $ — Exercisable at December 31, 2017 1,273 $ 47.45 2.0 years $ 10 443 $ 56.38 2.0 years $ — As of December 31, 2017, the total unrecognized compensation cost related to unvested Liberty Awards was approximately $116 million. Such amount will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 1.8 years. Liberty - Exercises The aggregate intrinsic value of all options exercised during the years ended December 31, 2017, 2016 and 2015 was $145 million, $44 million and $115 million, respectively. The aggregate intrinsic value of options exercised for the year ended December 31, 2017 includes approximately $104 million related to the intrinsic value of options exercised as a result of the Option Exchange. Liberty - Restricted Stock The Company had approximately 5.2 million and 252 thousand unvested restricted shares of QVC Group and Liberty Ventures common stock, respectively, held by certain directors, officers and employees of the Company as of December 31, 2017. These Series A and Series B unvested restricted shares of QVC Group and Liberty Ventures had a weighted average GDFV of $24.00 and $50.46 per share, respectively. The aggregate fair value of all restricted shares of Liberty common stock that vested during the years ended December 31, 2017, 2016 and 2015 was $23 million, $26 million and $16 million, respectively. Other Certain of the Company's other subsidiaries have stock-based compensation plans under which employees and non-employees are granted options or similar stock-based awards. Awards made under these plans vest and become exercisable over various terms and are typically cash settled and recorded as liability awards. During the year ended December 31, 2016, approximately $90 million of cash payments were made to settle CommerceHub stock based awards. The awards and compensation recorded, if any, under the plans at the other subsidiaries are not significant to Liberty. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Compensation and Employee Benefit Plans, Other than Share-based Compensation [Text Block] | (16) Employee Benefit Plans Subsidiaries of Liberty sponsor 401(k) plans, which provide their employees an opportunity to make contributions to a trust for investment in Liberty common stock, as well as other mutual funds. The Company's subsidiaries make matching contributions to their plans based on a percentage of the amount contributed by employees. Employer cash contributions to all plans aggregated $20 million, $25 million and $27 million, respectively, for the years ended December 31, 2017, 2016 and 2015, respectively. |
Other Comprehensive Earnings (L
Other Comprehensive Earnings (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Other Comprehensive Earnings (Loss) [Abstract] | |
Other Comprehensive Earnings (Loss) | (17) Other Comprehensive Earnings (Loss) Accumulated other comprehensive earnings (loss) included in Liberty's consolidated balance sheets and consolidated statements of equity reflect the aggregate of foreign currency translation adjustments, unrealized holding gains and losses on AFS securities and Liberty's share of accumulated other comprehensive earnings of affiliates. The change in the components of accumulated other comprehensive earnings (loss), net of taxes ("AOCI"), is summarized as follows: Foreign Share of currency AOCI translation of equity adjustments affiliates AOCI amounts in millions Balance at January 1, 2015 $ (75) (19) (94) Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders (100) (21) (121) Balance at December 31, 2015 (175) (40) (215) Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders (85) (1) (86) Distribution of Liberty Expedia Holdings — 35 35 Balance at December 31, 2016 $ (260) (6) (266) Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders 130 3 133 Balance at December 31, 2017 $ (130) (3) (133) The components of other comprehensive earnings (loss) are reflected in Liberty's consolidated statements of comprehensive earnings (loss) net of taxes. The following table summarizes the tax effects related to each component of other comprehensive earnings (loss). Tax Before-tax (expense) Net-of-tax amount benefit amount amounts in millions Year ended December 31, 2017: Foreign currency translation adjustments $ 155 (21) 134 Share of other comprehensive earnings (loss) of equity affiliates 5 (2) 3 Other comprehensive earnings (loss) $ 160 (23) 137 Year ended December 31, 2016: Foreign currency translation adjustments $ (97) 13 (84) Share of other comprehensive earnings (loss) of equity affiliates (8) 3 (5) Other comprehensive earnings (loss) from discontinued operations (3) 1 (2) Other 10 (4) 6 Other comprehensive earnings (loss) $ (98) 13 (85) Year ended December 31, 2015: Foreign currency translation adjustments $ (118) 17 (101) Share of other comprehensive earnings (loss) of equity affiliates (6) 2 (4) Other comprehensive earnings (loss) from discontinued operations (27) 10 (17) Other comprehensive earnings (loss) $ (151) 29 (122) |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (18) Commitments and Contingencies Operating Leases Liberty leases business offices, has entered into satellite transponder lease agreements and uses certain equipment under lease arrangements. Rental expense under such arrangements amounted to $45 million, $46 million and $39 million for the years ended December 31, 2017, 2016 and 2015, respectively. A summary of future minimum lease payments under noncancelable operating leases and build to suit leases as of December 31, 2017 follows (amounts in millions): Years ending December 31: 2018 $ 78 2019 $ 70 2020 $ 58 2021 $ 51 2022 $ 42 Thereafter $ 201 It is expected that in the normal course of business, leases that expire generally will be renewed or replaced by leases on other properties; thus, it is anticipated that future lease commitments will not be less than the amount shown for 2017. Distribution Center Lease On July 2, 2015, QVC entered into a lease (the “Lease”) for a west coast distribution center. Pursuant to the Lease, the landlord built an approximately one million square foot rental building in Ontario, California (the “Premises”), and thereafter leased the Premises to QVC as its new California distribution center for an initial term of 15 years. Under the Lease, QVC is required to pay an initial base rent of approximately $6 million per year, increasing to approximately $8 million per year by the final year of the initial term, as well as all real estate taxes and other building operating costs. QVC also has an option to extend the term of the Lease for up to two consecutive terms of 10 years each. QVC has the right to purchase the Premises and related land from the landlord by entering into an amended and restated agreement at any time during the twenty-fifth or twenty-sixth months of the Lease's initial term with a $10 million initial payment and annual payments of $12 million over a term of 13 years. QVC concluded that it was the deemed owner (for accounting purposes only) of the Premises during the construction period under build to suit lease accounting. Building construction began in July of 2015. During the construction period, QVC recorded estimated project construction costs incurred by the landlord as a projects in progress asset and a corresponding long-term liability in “Property and equipment, net” and “Other long-term liabilities,” respectively. In addition, QVC paid for normal tenant improvements and certain structural improvements and recorded these amounts as part of the projects in progress asset. Upon completion of construction, the long-term liability was reclassified to debt. QVC incurred construction costs of $89 million during the year ended December 31, 2016. No such costs were incurred for the year ended December 31, 2017. On August 29, 2016, QVC’s California distribution center officially opened. QVC concluded that the Lease does not meet the criteria for “sale-leaseback” treatment under U.S. GAAP. Therefore, QVC treats the Lease as a financing obligation and lease payments are attributed to: (1) a reduction of the principal financing obligation; (2) imputed interest expense; and (3) land lease expense representing an imputed cost to lease the underlying land of the Premises. In addition, the building asset will be depreciated over its estimated useful life of 20 years. Although QVC did not begin making monthly lease payments pursuant to the Lease until February 2017, the portion of the lease obligations allocated to the land has been treated for accounting purposes as an operating lease that commenced in 2015. If QVC does not exercise its right to purchase the Premises and related land, QVC will derecognize both the net book values of the asset and the financing obligation. Litigation Liberty has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible Liberty may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying consolidated financial statements. |
Information About Liberty's Ope
Information About Liberty's Operating Segments | 12 Months Ended |
Dec. 31, 2017 | |
Information About Liberty's Operating Segments | |
Information About Liberty's Operating Segments | (19) Information About Liberty's Operating Segments Liberty, through its ownership interests in subsidiaries and other companies, is primarily engaged in the video and on-line commerce industries. Liberty identifies its reportable segments as (A) those consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of Liberty's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation. Liberty evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per customer equivalent. In addition, Liberty reviews nonfinancial measures such as unique website visitors, conversion rates and active customers, as appropriate. Liberty defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). Liberty believes this measure is an important indicator of the operational strength and performance of its businesses, including each business's ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, certain purchase accounting adjustments, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Liberty generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices. For the year ended December 31, 2017, Liberty has identified the following consolidated subsidiaries as its reportable segments: · QVC – consolidated subsidiary that markets and sells a wide variety of consumer products in the U.S. and several foreign countries, primarily by means of its televised shopping programs and via the Internet and mobile transactions through its domestic and international websites. · zulily – consolidated subsidiary that markets and sells unique products in the U.S. and several foreign countries through flash sales events, primarily through its desktop and mobile websites and mobile applications. · HSN – consolidated subsidiary that markets and sells a wide variety of consumer products primarily in the U.S. by means of its televised shopping programs and via the Internet and mobile transactions through its domestic websites. Liberty's operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated subsidiaries are the same as those described in the Company's summary of significant accounting policies. Performance Measures Years ended December 31, 2017 2016 2015 Adjusted Adjusted Adjusted Revenue OIBDA Revenue OIBDA Revenue OIBDA amounts in millions QVC Group QVC $ 8,771 1,897 8,682 1,840 8,743 1,894 HSN — — NA NA NA NA zulily 1,613 91 1,547 112 426 21 Corporate and other — (35) — (16) — (28) Inter-segment eliminations (3) — (10) — — — Total QVC Group 10,381 1,953 10,219 1,936 9,169 1,887 Ventures Group Corporate and other 23 (27) 428 3 820 59 Total Ventures Group 23 (27) 428 3 820 59 Consolidated Liberty $ 10,404 1,926 10,647 1,939 9,989 1,946 Other Information December 31, 2017 December 31, 2016 Investments Investment Investments Investment Total in in Liberty Capital Total in in Liberty Capital assets affiliates Broadband expenditures assets affiliates Broadband expenditures amounts in millions QVC Group QVC $ 11,550 40 — 152 11,545 40 — 179 HSN 2,798 — — — NA NA NA NA zulily 2,323 — — 49 2,461 — — 27 Corporate and other 566 — — — 351 184 — — Total QVC Group 17,237 40 — 201 14,357 224 — 206 Ventures Group Corporate and other 6,885 269 3,635 3 5,998 357 3,161 27 Total Ventures Group 6,885 269 3,635 3 5,998 357 3,161 27 Inter-group eliminations — — — — — — Consolidated Liberty $ 24,122 309 3,635 204 20,355 581 3,161 233 The following table provides a reconciliation of consolidated segment Adjusted OIBDA to operating income and earnings (loss) from continuing operations before income taxes: Years ended December 31, 2017 2016 2015 amounts in millions Consolidated segment Adjusted OIBDA $ 1,926 1,939 1,946 Stock-based compensation (123) (97) (127) Depreciation and amortization (725) (874) (703) Acquisition and restructuring related costs (35) — — Operating income 1,043 968 1,116 Interest expense (355) (363) (360) Share of earnings (loss) of affiliates, net (200) (68) (178) Realized and unrealized gains (losses) on financial instruments, net 618 1,175 114 Gains (losses) on transactions, net 410 9 110 Other, net 7 131 14 Earnings (loss) from continuing operations before income taxes $ 1,523 1,852 816 Revenue by Geographic Area Revenue by geographic area based on the location of customers is as follows: Years ended December 31, 2017 2016 2015 amounts in millions United States $ 7,684 7,979 7,412 Japan 934 900 811 Germany 899 866 850 Other foreign countries 887 902 916 $ 10,404 10,647 9,989 Long-lived Assets by Geographic Area December 31, 2017 2016 amounts in millions United States $ 895 694 Japan 143 145 Germany 164 154 Other foreign countries 139 138 $ 1,341 1,131 |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Quarterly Financial Information (Unaudited) | (20) Quarterly Financial Information (Unaudited) As discussed in note 3, during the third quarter of 2016, the Company adopted new accounting guidance that requires the recognition of excess tax benefits and tax deficiencies as income tax benefit or expense rather than as additional paid-in capital. The Company has applied the new guidance prospectively from January 1, 2016. The unaudited quarterly information for the first and second quarters of 2016 has been retrospectively adjusted to reflect the impact of the adoption of this guidance. In addition, as discussed in note 6, in November 2016, Liberty completed the Expedia Holdings Split-Off. The unaudited quarterly information below for 2016 reflects Liberty’s interest in Expedia as a discontinued operation for all periods presented. 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter amounts in millions, except per share amounts 2017: Revenue $ 2,327 2,352 2,381 3,344 Operating income $ 213 254 208 368 Earnings from continuing operations $ 519 184 308 1,476 Net earnings (loss) attributable to Liberty Interactive Corporation stockholders: Series A and Series B QVC Group common stock $ 91 111 119 887 Series A and Series B Liberty Ventures common stock $ 416 64 177 576 Basic net earnings (loss) from continuing operations attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.20 0.25 0.27 2.07 Series A and Series B Liberty Ventures common stock $ 4.89 0.75 2.06 6.70 Diluted net earnings (loss) from continuing operations attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.20 0.24 0.26 2.05 Series A and Series B Liberty Ventures common stock $ 4.84 0.74 2.03 6.70 Basic net earnings (loss) attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.20 0.25 0.27 2.07 Series A and Series B Liberty Ventures common stock $ 4.89 0.75 2.06 6.70 Diluted net earnings (loss) attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.20 0.24 0.26 2.05 Series A and Series B Liberty Ventures common stock $ 4.84 0.74 2.03 6.70 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter amounts in millions, except per share amounts 2016: Revenue $ 2,510 2,563 2,412 3,162 Operating income $ 189 250 157 372 Earnings from continuing operations $ 92 387 451 324 Net earnings (loss) attributable to Liberty Interactive Corporation stockholders: Series A and Series B QVC Group common stock $ 94 130 61 188 Series A and Series B Liberty Ventures common stock $ (26) 249 408 131 Basic net earnings (loss) from continuing operations attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.19 0.27 0.13 0.41 Series A and Series B Liberty Ventures common stock $ (0.07) 1.73 2.68 1.15 Diluted net earnings (loss) from continuing operations attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.19 0.27 0.13 0.40 Series A and Series B Liberty Ventures common stock $ (0.07) 1.72 2.64 1.15 Basic net earnings (loss) attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.19 0.27 0.13 0.41 Series A and Series B Liberty Ventures common stock $ (0.18) 1.75 2.87 1.21 Diluted net earnings (loss) attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.19 0.27 0.13 0.40 Series A and Series B Liberty Ventures common stock $ (0.18) 1.74 2.83 1.21 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of investments which are readily convertible into cash and have maturities of three months or less at the time of acquisition. |
Receivables | Receivables Receivables are reflected net of an allowance for doubtful accounts and sales returns. A provision for bad debts is provided as a percentage of accounts receivable based on historical experience and included in selling, general and administrative expense. A provision for vendor receivables are determined based on an estimate of probable expected losses and included in cost of retail sales. A summary of activity in the allowance for doubtful accounts is as follows: Balance Additions Balance beginning Charged Deductions- end of of year to expense Other write-offs year amounts in millions 2017 $ 99 73 (1) (79) 92 2016 $ 87 109 (1) (96) 99 2015 $ 92 84 (1) (88) 87 |
Inventory | Inventory Inventory, consisting primarily of products held for sale, is stated at the lower of cost or market. Cost is determined by the average cost method, which approximates the first-in, first-out method. Assessments about the realizability of inventory require the Company to make judgments based on currently available information about the likely method of disposition including sales to individual customers, returns to product vendors, liquidations and the estimated recoverable values of each disposition category. Inventory is stated net of inventory obsolescence reserves of $93 million and $76 million for the years ended December 31, 2017 and 2016, respectively. In July 2015, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance that changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. The new principle is part of the FASB’s simplification initiative and applies to entities that measure inventory using a method other than last-in, first-out or the retail inventory method. The new standard is effective for the Company for fiscal years and interim periods beginning after December 15, 2016. The Company has determined there is no significant effect of the standard on its ongoing financial reporting. |
Investments | Investments All marketable equity and debt securities held by the Company are classified as available-for-sale ("AFS") and are carried at fair value generally based on quoted market prices. United States (“U.S.”) generally accepted accounting principles ("GAAP") permit entities to choose to measure many financial instruments, such as AFS securities, and certain other items at fair value and to recognize the changes in fair value of such instruments in the entity's statements of operations (the "fair value option"). Liberty had previously entered into economic hedges for certain of its non-strategic AFS securities (although such instruments were not accounted for as fair value hedges by the Company). Changes in the fair value of these economic hedges were reflected in Liberty's statements of operations as unrealized gains (losses). In order to better match the changes in fair value of the subject AFS securities and the changes in fair value of the corresponding economic hedges in the Company's financial statements, Liberty has elected the fair value option for those of its AFS securities which it considers to be non-strategic ("Fair Value Option Securities"). Accordingly, changes in the fair value of Fair Value Option Securities, as determined by quoted market prices, are reported in realized and unrealized gains (losses) on financial instruments in the accompanying consolidated statements of operations. The total value of AFS securities for which the Company has elected the fair value option aggregated $2,275 million and $1,846 million as of December 31, 2017 and 2016, respectively. Other investments in which the Company's ownership interest is less than 20%, unless the Company has the ability to exercise significant influence, and that are not considered marketable securities are carried at cost. For those investments in affiliates in which the Company has the ability to exercise significant influence, the equity method of accounting is used, except in situations where the fair value option has been selected. Under the equity method of accounting, the investment, originally recorded at cost, is adjusted to recognize the Company's share of net earnings or losses of the affiliate as they occur rather than as dividends or other distributions are received. Losses are limited to the extent of the Company's investment in, advances to and commitments for the investee. In the event the Company is unable to obtain accurate financial information from an equity affiliate in a timely manner, the Company records its share of earnings or losses of such affiliate on a lag. Changes in the Company's proportionate share of the underlying equity of an equity method investee, which result from the issuance of additional equity securities by such equity investee, are recognized in the statements of operations through the Other, net line item. To the extent there is a difference between our ownership percentage in the underlying equity of an equity method investee and our carrying value, such difference is accounted for as if the equity method investee were a consolidated subsidiary. The Company continually reviews its equity investments and its AFS securities which are not Fair Value Option Securities to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company's carrying value; the severity of the decline; and the financial condition, operating performance and near term prospects of the investee. In addition, the Company considers the reason for the decline in fair value, be it general market conditions, industry specific or investee specific; analysts' ratings and estimates of 12 month share price targets for the investee; changes in stock price or valuation subsequent to the balance sheet date; and the Company's intent and ability to hold the investment for a period of time sufficient to allow for a recovery in fair value. If the decline in fair value is deemed to be other than temporary, the carrying value of the security is written down to fair value. In situations where the fair value of an investment is not evident due to a lack of a public market price or other factors, the Company uses its best estimates and assumptions to arrive at the estimated fair value of such investment. The Company's assessment of the foregoing factors involves considerable management judgment and accordingly, actual results may differ materially from the Company's estimates and judgments. Writedowns for AFS securities which are not Fair Value Option Securities would be included in the consolidated statements of operations as other than temporary declines in fair values of investments. Writedowns for equity method investments would be included in share of earnings (losses) of affiliates. In January 2016, the FASB issued new accounting guidance that is intended to improve the recognition and measurement of financial instruments. The new guidance requires equity investments with readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation) to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The new standard is effective for the Company for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted under certain circumstances. The Company plans to adopt this standard during the first quarter of 2018 and does not expect that the adoption will have a material effect on its consolidated financial statements. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities All of the Company's derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive earnings and are recognized in the statements of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. If the derivative is not designated as a hedge, changes in the fair value of the derivative are recognized in earnings. The Company generally enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income to the extent that the derivative is effective as a hedge, until earnings are affected by the variability in cash flows of the designated hedged item. The ineffective portion of the change in fair value of a derivative instrument that qualifies as a cash flow hedge is reported in earnings. |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: December 31, December 31, 2017 2016 amounts in millions Land $ 108 81 Buildings and improvements 1,165 1,016 Support equipment 1,240 1,034 Projects in progress 51 32 Total property and equipment $ 2,564 2,163 Property and equipment, including significant improvements, is stated at cost. Depreciation is computed using the straight-line method using estimated useful lives of 2 to 15 years for support equipment and 8 to 20 years for buildings and improvements. Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $176 million, $171 million and $153 million, respectively. |
Intangible Assets | Intangible Assets Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment upon certain triggering events. Goodwill and other intangible assets with indefinite useful lives (collectively, "indefinite lived intangible assets") are not amortized, but instead are tested for impairment at least annually. Our annual impairment assessment of our indefinite-lived intangible assets is performed during the fourth quarter of each year. In January 2017, the FASB issued new accounting guidance to simplify the measurement of goodwill impairment. Under the new guidance, an entity no longer performs a hypothetical purchase price allocation to measure goodwill impairment. Instead, a goodwill impairment is measured using the difference between the carrying value and the fair value of the reporting unit. The Company early adopted this guidance during the fourth quarter of 2017. In evaluating goodwill on a qualitative basis, the Company reviews the business performance of each reporting unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it was more likely than not that an indicated impairment exists for any of our reporting units. The Company considers whether there are any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges, the legal environments and how these factors might impact company specific performance in future periods. As part of the analysis the Company also considers fair value determinations for certain reporting units that have been made at various points throughout the current year and prior year for other purposes. If based on the qualitative analysis it is more likely than not that an impairment exists, the Company performs the quantitative impairment test. The quantitative goodwill impairment test compares the estimated fair value of a reporting unit to its carrying value. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in Liberty's valuation analyses are based on management's best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. The accounting guidance also permits entities to first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. The accounting guidance also allows entities the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to the quantitative impairment test. The entity may resume performing the qualitative assessment in any subsequent period. If the qualitative assessment supports that it is more likely than not that the carrying value of the Company’s indefinite-lived intangible assets, other than goodwill, exceeds its fair value, then a quantitative assessment is performed. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company periodically reviews the carrying amounts of its property and equipment and its intangible assets (other than goodwill and indefinite-lived intangible assets) to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. If the carrying amount of the asset group is greater than the expected undiscounted cash flows to be generated by such asset group, including its ultimate disposition, an impairment adjustment is to be recognized. Such adjustment is measured by the amount that the carrying value of such asset groups exceeds their fair value. The Company generally measures fair value by considering sale prices for similar asset groups or by discounting estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of asset groups. Accordingly, actual results could vary significantly from such estimates. Asset groups to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. |
Noncontrolling Interests | Noncontrolling Interests The Company reports noncontrolling interests of subsidiaries within equity in the balance sheet and the amount of consolidated net income attributable to the parent and to the noncontrolling interest is presented in the statements of operations. Also, changes in ownership interests in subsidiaries in which the Company maintains a controlling interest are recorded in equity. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company is the U.S. Dollar. The functional currency of the Company's foreign operations generally is the applicable local currency for each foreign subsidiary. Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date, and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustment, net of applicable income taxes, is recorded as a component of accumulated other comprehensive earnings in stockholders' equity. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses which are reflected in the accompanying consolidated statements of operations and comprehensive earnings (loss) as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions. These realized and unrealized gains and losses are reported in the Other, net line item in the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition Retail revenue is recognized at the time of delivery to customers. The revenue for shipments in-transit is recorded as deferred revenue and included in other current liabilities. Additionally, service revenue, which is less than one percent of overall revenue, is recognized when the applicable criteria are met: persuasive evidence of an arrangement exists, services have been rendered, the price is fixed and determinable and collectability is reasonably assured. An allowance for returned merchandise is provided as a percentage of sales based on historical experience. The total reduction in sales due to returns for the years ended December 31, 2017, 2016 and 2015 aggregated $1,861 million, $1,865 million and $2,037 million, respectively. Sales tax collected from customers on retail sales is recorded on a net basis and is not included in revenue. A summary of activity in the allowance for sales returns, is as follows: Balance beginning of year Additions - charged to earnings Deductions Balance end of year in millions 2017 $ 98 1,027 (1,023) 102 2016 $ 106 1,051 (1,060) 98 2015 $ 109 1,213 (1,216) 106 In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In March 2016, the FASB issued additional guidance which clarifies principal versus agent considerations, and in April 2016, the FASB issued further guidance which clarifies the identification of performance obligations and the implementation guidance for licensing. The updated guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a full retrospective or modified retrospective transition method. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted only for fiscal years beginning after December 15, 2016. The Company will adopt the accounting guidance effective as of January 1, 2018 with an immaterial adjustment to retained earnings using the modified transition method. The Company has completed our review of the applicable ASU and has concluded it will recognize revenue at the time of shipment to its customers consistent with when title passes. This is a change from the current practice whereby the Company recognizes revenue at the time of delivery to the customers and deferred revenue is recorded to account for the shipments in-transit. The Company has also concluded that it will continue to act as principal in certain vendor arrangements and will recognize credit card income for its QVC-branded credit card as part of net revenue. At the current time, the credit card income is included as an offset to selling, general, and administrative expenses. In addition, the Company’s balance sheet presentation of its sales return reserve will change to present a separate return asset and liability, instead of the net presentation currently used. The Company will also elect the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component when its payment terms are less than one year, as well as the practical expedient to exclude from the measurement of the transaction price sales and similar taxes collected from customers. |
Cost of Sales | Cost of Sales Cost of sales primarily includes actual product cost, provision for obsolete inventory, buying allowances received from suppliers, shipping and handling costs and warehouse costs. |
Advertising Costs | Advertising Costs Advertising costs generally are expensed as incurred. Advertising expense aggregated $217 million, $231 million and $154 million for the years ended December 31, 2017, 2016 and 2015, respectively. Advertising costs are reflected in the selling, general and administrative, including stock-based compensation line item in our consolidated statements of operations. |
Stock-Based Compensation | Stock-Based Compensation As more fully described in note 15, the Company has granted to its directors, employees and employees of its subsidiaries options, restricted stock and stock appreciation rights relating to shares of QVC Group and/or Liberty Ventures common stock ("Liberty common stock") (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an Award of equity instruments (such as stock options and restricted stock) based on the grant-date fair value (“GDFV”) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for an Award of liability instruments (such as stock appreciation rights that will be settled in cash) based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date. Stock compensation expense was $123 million, $97 million and $127 million for the years ended December 31, 2017, 2016 and 2015, respectively, included in selling, general and administrative expense in the accompanying consolidated statements of operations. In March 2016, the FASB issued new guidance which simplifies several aspects of the accounting for share-based payment award transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for the Company for fiscal years and interim periods beginning after December 15, 2016, with early application permitted. The Company adopted this guidance in the third quarter of 2016. In accordance with the new guidance, excess tax benefits and tax deficiencies are recognized as income tax benefit or expense rather than as additional paid-in capital. The Company has elected to recognize forfeitures as they occur rather than continue to estimate expected forfeitures. In addition, pursuant to the new guidance, excess tax benefits are classified as an operating activity on the consolidated statements of cash flows. The recognition of excess tax benefits and deficiencies are applied prospectively from January 1, 2016. For tax benefits that were not previously recognized and for adjustments to compensation cost based on actual forfeitures, the Company has recorded a cumulative-effect adjustment in retained earnings as of January 1, 2016. The presentation changes for excess tax benefits have been applied retrospectively in the consolidated statements of cash flows, resulting in $33 million of excess tax benefits for the year ended December 31, 2015 reclassified from cash flows from financing activities to cash flows from operating activities. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying value amounts and income tax bases of assets and liabilities and the expected benefits of utilizing net operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using enacted tax rates in effect for each taxing jurisdiction in which the Company operates for the year in which those temporary differences are expected to be recovered or settled. Net deferred tax assets are then reduced by a valuation allowance if the Company believes it more likely than not such net deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in income in the period that includes the enactment date. When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. Such interest expense is included in interest expense in the accompanying consolidated statements of operations. Any accrual of penalties related to underpayment of income taxes on uncertain tax positions is included in other income (expense) in the accompanying consolidated statements of operations. In October 2016, the FASB issued new guidance amending the accounting for income taxes associated with intra-entity transfers of assets other than inventory. This accounting update, which is part of the FASB's simplification initiative, is intended to reduce diversity in practice and the complexity of tax accounting, particularly for those transfers involving intellectual property. This new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. We anticipate an immaterial retained earnings decrease upon adoption related to the unrecognized income tax effects of asset transfers that occurred prior to adoption. |
Earnings (Loss) Attributable to Liberty Interactive Corporation Stockholders and Earnings (Loss) Per Common Share | Earnings (Loss) Attributable to Liberty Stockholders and Earnings (Loss) Per Common Share Net earnings (loss) attributable to Liberty stockholders is comprised of the following (amounts in millions): Years ended December 31, 2017 2016 2015 QVC Group Net earnings (loss) from continuing operations $ 1,208 473 640 Net earnings (loss) from discontinued operations $ NA NA NA Liberty Ventures Net earnings (loss) from continuing operations $ 1,233 742 (51) Net earnings (loss) from discontinued operations $ — 20 280 Basic earnings (loss) per common share ("EPS") is computed by dividing net earnings (loss) attributable to such common stock by the weighted average number of common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. Series A and Series B QVC Group Common Stock EPS for all periods through December 31, 2017, is based on the following weighted average shares outstanding. Excluded from diluted EPS for the years ended December 31, 2017, 2016 and 2015 are approximately 20 million, 13 million and 6 million potential common shares, respectively, because their inclusion would be antidilutive. Years ended December 31, 2017 2016 2015 number of shares in millions Basic WASO 445 476 475 Potentially dilutive shares 3 5 6 Diluted WASO 448 481 481 Series A and Series B Liberty Ventures Common Stock EPS for all periods through December 31, 2017, is based on the following weighted average shares outstanding. Excluded from diluted EPS for the years ended December 31, 2017, 2016, and 2015 are less than a million potential common shares because their inclusion would be antidilutive. Years ended December 31, 2017 2016 2015 number of shares in millions Basic WASO 86 134 142 Potentially dilutive shares 1 1 1 Diluted WASO 87 135 143 |
Reclasses and adjustments | Reclasses and adjustments Certain prior period amounts have been reclassified for comparability with the current year presentation. As a result of repurchases of Series A QVC Group common stock, the Company’s additional paid-in capital balance was in a deficit position in certain quarterly periods during the year ended December 31, 2017. In order to maintain a zero balance in the additional paid-in capital account, we reclassified the amount of the deficit ($405 million) at December 31, 2017 to retained earnings. |
Estimates | Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Liberty considers (i) recurring and non-recurring fair value measurements, (ii) accounting for income taxes, (iii) assessments of other-than-temporary declines in fair value of its investments and (iv) estimates of retail-related adjustments and allowances to be its most significant estimates. Liberty holds investments that are accounted for using the equity method. Liberty does not control the decision making process or business management practices of these affiliates. Accordingly, Liberty relies on management of these affiliates to provide it with accurate financial information prepared in accordance with GAAP that Liberty uses in the application of the equity method. In addition, Liberty relies on audit reports that are provided by the affiliates' independent auditors on the financial statements of such affiliates. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliates that would have a material effect on Liberty's consolidated financial statements. |
New accounting pronouncements | New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued new guidance which revises the accounting for leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The new guidance also simplifies the accounting for sale and leaseback transactions. The new standard, to be applied via a modified retrospective transition approach, is effective for the Company for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. The Company has not yet determined the effect of the standard on its ongoing financial reporting. The Company is currently working with its consolidated subsidiaries to evaluate the impact of the adoption of this new guidance on our consolidated financial statements, including identifying the population of leases, evaluating technology solutions and collecting lease data. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of activity in the allowance for doubtful accounts | Balance Additions Balance beginning Charged Deductions- end of of year to expense Other write-offs year amounts in millions 2017 $ 99 73 (1) (79) 92 2016 $ 87 109 (1) (96) 99 2015 $ 92 84 (1) (88) 87 |
Schedule of Property and Equipment | December 31, December 31, 2017 2016 amounts in millions Land $ 108 81 Buildings and improvements 1,165 1,016 Support equipment 1,240 1,034 Projects in progress 51 32 Total property and equipment $ 2,564 2,163 |
Schedule of net earnings attributable to stockholders | Net earnings (loss) attributable to Liberty stockholders is comprised of the following (amounts in millions): Years ended December 31, 2017 2016 2015 QVC Group Net earnings (loss) from continuing operations $ 1,208 473 640 Net earnings (loss) from discontinued operations $ NA NA NA Liberty Ventures Net earnings (loss) from continuing operations $ 1,233 742 (51) Net earnings (loss) from discontinued operations $ — 20 280 |
Summary of activity in allowance for sales returns | Balance beginning of year Additions - charged to earnings Deductions Balance end of year in millions 2017 $ 98 1,027 (1,023) 102 2016 $ 106 1,051 (1,060) 98 2015 $ 109 1,213 (1,216) 106 |
QVC Group Common Stock | |
Schedule of Weighted Average Number of Shares | Years ended December 31, 2017 2016 2015 number of shares in millions Basic WASO 445 476 475 Potentially dilutive shares 3 5 6 Diluted WASO 448 481 481 |
Liberty Ventures common stock | |
Schedule of Weighted Average Number of Shares | Years ended December 31, 2017 2016 2015 number of shares in millions Basic WASO 86 134 142 Potentially dilutive shares 1 1 1 Diluted WASO 87 135 143 |
Supplemental Disclosures to C30
Supplemental Disclosures to Consolidated Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Disclosures to Consolidated Statements of Cash Flow [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Years ended December 31, 2017 2016 2015 amounts in millions Cash paid for acquisitions: Fair value of assets acquired $ 956 — 154 Intangible assets not subject to amortization 1,577 7 1,791 Intangible assets subject to amortization 651 (40) 837 Net liabilities assumed (977) — (214) Deferred tax assets (liabilities) (281) 33 (637) Fair value of equity consideration (1,948) — (1,087) Cash paid (received) for acquisitions, net of cash acquired $ (22) — 844 Cash paid for interest $ 343 354 374 Cash paid for income taxes $ 158 204 318 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition, Pro Forma Information | Years Ended December 31, 2017 2016 amounts in millions (unaudited) Revenue $ 13,791 14,220 Net earnings (loss) from continuing operations 2,200 1,258 |
zulily | |
Schedule of Purchase Price Allocation | The final purchase price allocation for zulily is as follows (amounts in millions): Cash and cash equivalents $ Property and equipment Other assets Goodwill Trademarks Intangible assets subject to amortization Accounts payable & accrued liabilities Other liabilities assumed Deferred tax liabilities $ |
HSNi | |
Schedule of Purchase Price Allocation | The preliminary purchase price allocation for HSNi is as follows (amounts in millions): Cash and cash equivalents $ Property and equipment Other assets 752 Goodwill 950 Trademarks Intangible assets subject to amortization Accounts payable & accrued liabilities Debt Other liabilities assumed Deferred tax liabilities $ 1,948 |
Disposals (Tables)
Disposals (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of earnings per share impact of discontinued operations | Years ended December 31, 2016 2015 Basic earnings (loss) from discontinued operations attributable to Liberty shareholders per common share (note 3): Series A and Series B QVC Group common stock $ NA NA Series A and Series B Liberty Ventures common stock $ 0.15 1.97 Diluted earnings (loss) from discontinued operations attributable to Liberty shareholders per common share (note 3): Series A and Series B QVC Group common stock $ NA NA Series A and Series B Liberty Ventures common stock $ 0.15 1.96 |
Expedia | |
Certain financial information of disposal groups, balance sheet | December 31, 2015 amounts in millions Current assets $ 2,976 Total assets $ 15,486 Current liabilities $ 5,926 Total liabilities $ 10,556 Equity $ 4,930 |
Certain financial information of disposal groups, income statement | Year ended December 31, 2015 amounts in millions Operating income $ 414 Gain on sale of business $ 509 Income tax (expense) benefit $ (203) Net earnings (loss) attributable to Expedia shareholders $ 764 |
Schedule Of Disposal Groups Including Discontinued Operations Income Statement [Table Text Block] | Certain financial information for Liberty’s investment in Expedia, which is included in earnings (loss) from discontinued operations, is as follows (amounts in millions): Years ended December 31, 2016 2015 Earnings (loss) before income taxes $ 24 Income tax (expense) benefit $ (4) (157) |
Schedule of Disposal Groups Including Discontinued Operations Balance Sheet [Table Text Block] | Certain financial information for Liberty’s investment in Expedia, which is included in the discontinued operations line items of the consolidated Liberty balance sheets as of December 31, 2015, is as follows (amounts in millions): December 31, 2015 Investments in affiliates, accounted for using the equity method $ Deferred income tax liabilities $ |
Assets And Liabilities Measur33
Assets And Liabilities Measured At Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | December 31, 2017 December 31, 2016 Quoted prices Quoted prices in active Significant in active Significant markets other markets other for identical observable for identical observable assets inputs assets inputs Description Total (Level 1) (Level 2) Total (Level 1) (Level 2) amounts in millions Cash equivalents $ 655 655 — 625 625 — Available-for-sale securities $ 2,275 2,275 — 1,846 1,846 — Investment in Liberty Broadband $ 3,635 3,635 — 3,161 3,161 — Debt $ 1,846 — 1,846 1,667 — 1,667 |
Summary of Realized and Unrealized Gains (Losses) on Financial Instruments | Years ended December 31, 2017 2016 2015 amounts in millions Fair Value Option Securities - AFS $ 434 723 84 Fair Value Option Securities - Liberty Broadband 473 761 NA Exchangeable senior debentures (193) (308) 30 Other financial instruments (96) (1) — $ 618 1,175 114 |
Investments In Available-For-34
Investments In Available-For-Sale Securities And Other Cost Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Available-For-Sale Securities And Other Cost Investments | |
Schedule of Available-for-sale Securities Reconciliation | December 31, December 31, 2017 2016 amounts in millions QVC Group Other investments $ 3 4 Total attributed QVC Group 3 4 Ventures Group Charter 1,800 1,543 ILG 474 302 Other investments 86 73 Total attributed Ventures Group 2,360 1,918 Consolidated Liberty $ 2,363 1,922 |
Investments In Affiliates Acc35
Investments In Affiliates Accounted For Using The Equity Method (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Affiliates Accounted For Using The Equity Method | |
Schedule Of Equity Ownership And Carrying Amount | December 31, 2017 December 31, 2016 Percentage Market Carrying Carrying ownership value amount amount dollars in millions QVC Group HSNi (1) 100 % $ NA $ NA 184 Other various NA 40 40 Total QVC Group 40 224 Ventures Group FTD (2) 37 % $ 73 73 216 LendingTree (3) 27 % 1,098 115 31 Other (4) various NA 81 110 Total Ventures Group 269 357 Consolidated Liberty $ 309 581 |
Schedule Of Liberty's Share Of Earnings (Losses) Of Affiliates | Years ended December 31, 2017 2016 2015 amounts in millions QVC Group HSNi (1) $ 40 48 64 Other (2) (6) (9) Total QVC Group 38 42 55 Ventures Group FTD (2) (146) (41) (83) LendingTree (3) 7 12 2 Other (4) (99) (81) (152) Total Ventures Group (238) (110) (233) Consolidated Liberty $ (200) (68) (178) (1) As discussed in note 5, on December 29, 2017, the Company acquired the approximately 62% of HSNi it did not already own in an all-stock transaction making HSNi a wholly-owned subsidiary, attributed to the QVC Group tracking stock group. Therefore the Company no longer has an equity method investment in HSNi as of December 31, 2017. In addition, HSNi paid dividends of $28 million, $28 million, and $228 million during the years ended December 31, 2017, 2016 and 2015, respectively, which were recorded as reductions to the investment balances, and recorded as a cash inflow from operations in the Cash receipts from returns on equity investments line item in the consolidated statements of cash flows. Dividends from HSNi during the year ended December 31, 2015 included a special dividend of $10 per share from which Liberty received approximately $200 million in cash, which was recorded as a cash inflow from investing activities in the Cash receipts from returns of equity investments line item in the consolidated statements of cash flows. (2) The carrying value of Liberty’s investment in FTD was written down to its fair value (based on the closing price (Level 1)) as of December 31, 2017 and December 31, 2015. (3) During the year ended December 31, 2017, the Company purchased an additional 450 thousand shares of LendingTree common stock (“TREE”). In order to purchase the additional shares, Ventures Holdco, LLC, a wholly owned subsidiary of the Company executed a 2-year postpaid variable forward with a notional value of $110 million. The company pledged 642,850 shares of TREE and purchased the delta underlying of 450,000 shares for $77 million. Changes in the fair value of the derivative are reflected in the Realized and unrealized gains (losses) on financial instruments, net line item in the consolidated statements of operations. For the period ended December 31, 2017, the Company recorded an unrealized loss of $95 million. (4) The Other category for the Ventures Group is comprised of alternative energy investments and other investments. The alternative energy investments generally operate at a loss but provide favorable tax attributes recorded through the income tax (expense) benefit line item in the consolidated statements of operations. During the year ended December 31, 2015, Liberty recorded an impairment of approximately $98 million, based on a discounted cash flow valuation (Level 3), related to one of its alternative energy investments which had underperformed operationally. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In The Carrying Amount Of Goodwill | QVC zulily HSN Corporate and Other Total amounts in millions Balance at January 1, 2016 $ 5,149 860 — 103 6,112 Acquisition (1) — 57 — — 57 Disposition (2) — — — (78) (78) Foreign currency translation adjustments (39) — — — (39) Balance at December 31, 2016 5,110 917 — 25 6,052 Acquisition (3) — — 933 17 950 Foreign currency translation adjustments 80 — — — 80 Balance at December 31, 2017 $ 5,190 917 933 42 7,082 (1) Subsequent to December 31, 2015, the preliminary purchase price allocation for the zulily acquisition was adjusted, resulting in a $57 million increase to goodwill. (2) As discussed in note 6, Liberty completed the CommerceHub Spin-Off on July 22, 2016, resulting in a $21 million decrease to goodwill. In addition, as discussed in note 6, Liberty completed the Expedia Holdings Split-Off on November 4, 2016, resulting in a $57 million decrease to goodwill related to Bodybuilding. (3) As discussed in note 5, on December 29, 2017, the Company acquired the approximately 62% of HSNi it did not already own in an all-stock transaction making HSNi a wholly-owned subsidiary, attributed to the QVC Group tracking stock group. The acquisition resulted in an increase to goodwill of $950 million. |
Schedule of Intangible assets subject to amortization | December 31, 2017 December 31, 2016 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in millions Television distribution rights $ 730 (652) 78 2,279 (2,095) 184 Customer relationships 3,356 (2,626) 730 2,910 (2,394) 516 Other 1,268 (828) 440 965 (660) 305 Total $ 5,354 (4,106) 1,248 6,154 (5,149) 1,005 |
Amortization Expense For The Next Five Fiscal Years | Based on its amortizable intangible assets as of December 31, 2017, Liberty expects that amortization expense will be as follows for the next five years (amounts in millions): 2018 $ 401 2019 $ 236 2020 $ 162 2021 $ 129 2022 $ 77 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Debt Excluding Intergroup Debt | Outstanding principal Carrying value December 31, December 31, December 31, 2017 2017 2016 amounts in millions QVC Group Corporate level notes and debentures 8.5% Senior Debentures due 2029 $ 287 285 285 8.25% Senior Debentures due 2030 504 502 501 Subsidiary level notes and facilities QVC 3.125% Senior Secured Notes due 2019 400 399 399 QVC 5.125% Senior Secured Notes due 2022 500 500 500 QVC 4.375% Senior Secured Notes due 2023 750 750 750 QVC 4.85% Senior Secured Notes due 2024 600 600 600 QVC 4.45% Senior Secured Notes due 2025 600 599 599 QVC 5.45% Senior Secured Notes due 2034 400 399 399 QVC 5.95% Senior Secured Notes due 2043 300 300 300 QVC Bank Credit Facilities 1,763 1,763 1,896 HSNi Bank Credit Facility 460 460 NA Other subsidiary debt 170 170 174 Deferred loan costs — (24) (28) Total QVC Group $ 6,734 6,703 6,375 Ventures Group Corporate level debentures 4% Exchangeable Senior Debentures due 2029 $ 434 316 276 3.75% Exchangeable Senior Debentures due 2030 435 318 267 3.5% Exchangeable Senior Debentures due 2031 328 342 316 0.75% Exchangeable Senior Debentures due 2043 — 2 3 1.75% Exchangeable Senior Debentures due 2046 750 868 805 Total Ventures Group $ 1,947 1,846 1,667 Total consolidated Liberty debt $ 8,681 8,549 8,042 Less debt classified as current (996) (876) Total long-term debt 7,553 7,166 |
Schedule of Five Year Maturities | The annual principal maturities of Liberty's debt, based on stated maturity dates, for each of the next five years is as follows (amounts in millions): 2018 $ 24 2019 $ 425 2020 $ 23 2021 $ 1,786 2022 $ 980 |
Debt Securities That Are Not Reported At Fair Value | The fair value, based on quoted prices of instruments not considered to be active markets (Level 2), of Liberty's publicly traded debt securities that are not reported at fair value in the accompanying consolidated balance sheets is as follows (amounts in millions): December 31, 2017 2016 Senior debentures $ 866 853 QVC senior secured notes $ 3,636 3,496 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years ended December 31, 2017 2016 2015 amounts in millions Current: Federal $ (61) (40) (188) State and local (23) (12) (26) Foreign (88) (73) (74) $ (172) (125) (288) Deferred: Federal $ 1,266 (444) 74 State and local (130) (33) 21 Foreign — 4 8 1,136 (473) 103 Income tax benefit (expense) $ 964 (598) (185) |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Years ended December 31, 2017 2016 2015 amounts in millions Domestic $ 1,314 1,684 674 Foreign 209 168 142 Total $ 1,523 1,852 816 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years ended December 31, 2017 2016 2015 amounts in millions Computed expected tax benefit (expense) $ (533) (649) (286) State and local income taxes, net of federal income taxes (26) (26) (15) Foreign taxes, net of foreign tax credits (32) (9) (5) Dividends received deductions 10 9 51 Alternative energy tax credits and incentives 85 94 61 Change in valuation allowance affecting tax expense (101) (16) 6 Change in tax rate due to Tax Act 1,485 — — Change in state tax rate (84) 1 (7) Consolidation of equity investment 138 — — Other, net 22 (2) 10 Income tax benefit (expense) $ 964 (598) (185) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2017 2016 amounts in millions Deferred tax assets: Net operating and capital loss carryforwards $ 160 123 Foreign tax credit carryforwards 98 134 Accrued stock compensation 51 56 Other accrued liabilities 19 118 Other future deductible amounts 190 144 Deferred tax assets 518 575 Valuation allowance (165) (64) Net deferred tax assets 353 511 Deferred tax liabilities: Investments 903 1,057 Intangible assets 1,188 1,540 Discount on exchangeable debentures 981 1,404 Deferred gain on debt retirements 43 129 Other 41 17 Deferred tax liabilities 3,156 4,147 Net deferred tax liabilities $ 2,803 3,636 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Years ended December 31, 2017 2016 2015 amounts in millions Balance at beginning of year $ 72 104 136 Additions based on tax positions related to the current year 10 16 14 Additions for tax positions of prior years 4 — — Reductions for tax positions of prior years — (26) (12) Lapse of statute and settlements (15) (22) (34) Balance at end of year $ 71 72 104 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Volatility 2017 grants QVC Group options 26.9 % - 32.7 % Liberty Ventures options 25.9 % - 28.9 % 2016 grants QVC Group options 27.4 % - 27.4 % Liberty Ventures options 30.6 % - 30.6 % 2015 grants QVC Group options 27.4 % - 39.7 % Liberty Ventures options 30.6 % - 42.4 % |
Schedule of stock option activity | For the Years ended December 31, 2017 2016 2015 Options Granted (000's) Weighted Average GDFV Options Granted (000's) Weighted Average GDFV Options Granted (000's) Weighted Average GDFV Series A QVC Group common stock, QVC employees (1) 3,115 $ 7.86 2,860 $ 7.84 2,002 $ 11.87 Series A QVC Group common stock, zulily employees (1) 483 $ 7.86 433 $ 7.57 264 $ 9.84 Series A QVC Group common stock, Liberty employees and directors (2) 518 $ 7.81 421 $ 8.02 2,459 $ 11.63 Series A QVC Group common stock, QVC CEO (3) NA NA NA NA 1,680 $ 10.40 Series B QVC Group common stock, Liberty CEO (4) 154 $ 7.92 730 $ 7.47 132 $ 10.10 Series A Ventures Group common stock, Liberty employees and directors (2) 188 $ 16.52 114 $ 12.25 683 $ 18.10 Series B Ventures Group common stock, Liberty CEO (4) 269 $ 15.41 209 $ 12.48 135 $ 16.94 (1) Mainly vests semi-annually over four years. (2) Mainly vests between three and five years for employees and in one year for directors. (3) Vests 50% on each of December 31, 2019 and 2020. Grant was made in connection with a new compensation arrangement. Grants in 2017 and 2016 cliff vested at the end of their respective grant year; grant in 2015 cliff vested in March 2016. Grants were made in connection with his employment agreement (see note 14). |
QVC Group Common Stock | |
Schedule of Share-based Compensation, Activity | QVC Group Series A Series B Weighted Aggregate Weighted Aggregate average intrinsic average intrinsic Awards remaining value Awards remaining value (000's) WAEP life (in millions) (000's) WAEP life (in millions) Outstanding at January 1, 2017 29,585 $ 20.80 1,489 $ HSNi Acquisition 3,635 $ 26.22 — $ — Granted 4,116 $ 23.82 154 $ 23.87 Exercised (3,611) $ 16.34 — $ — Forfeited/Cancelled (1,364) $ 27.23 — $ — Option Exchange, Exercised (5,931) $ 17.76 — $ — Option Exchange, Granted 5,931 $ 25.74 — $ — Outstanding at December 31, 2017 32,361 $ 23.48 4.0 years $ 86 1,643 $ 4.8 years $ — Exercisable at December 31, 2017 20,286 $ 22.66 3.2 years $ 71 997 $ 25.40 4.3 years $ — |
Liberty Ventures common stock | |
Schedule of Share-based Compensation, Activity | Liberty Ventures Series A Series B Weighted Aggregate Weighted Aggregate average intrinsic average intrinsic Awards remaining value Awards remaining value (000's) WAEP life (in millions) (000's) WAEP life (in millions) Outstanding at January 1, 2017 1,974 $ 22.18 987 $ 35.02 Granted 188 $ 55.42 269 $ 52.39 Exercised (451) $ 16.69 — $ — Forfeited/Cancelled (12) $ 38.50 — $ — Option Exchange, Exercised (975) $ 20.99 (1,256) $ 38.74 Option Exchange, Granted 946 $ 55.96 1,080 $ 56.38 Outstanding at December 31, 2017 1,670 $ 47.12 2.6 years $ 14 1,080 $ 56.38 4.7 years $ — Exercisable at December 31, 2017 1,273 $ 47.45 2.0 years $ 10 443 $ 56.38 2.0 years $ — |
Other Comprehensive Earnings 40
Other Comprehensive Earnings (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Comprehensive Earnings (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Foreign Share of currency AOCI translation of equity adjustments affiliates AOCI amounts in millions Balance at January 1, 2015 $ (75) (19) (94) Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders (100) (21) (121) Balance at December 31, 2015 (175) (40) (215) Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders (85) (1) (86) Distribution of Liberty Expedia Holdings — 35 35 Balance at December 31, 2016 $ (260) (6) (266) Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders 130 3 133 Balance at December 31, 2017 $ (130) (3) (133) |
Schedule of Comprehensive Income (Loss) | Tax Before-tax (expense) Net-of-tax amount benefit amount amounts in millions Year ended December 31, 2017: Foreign currency translation adjustments $ 155 (21) 134 Share of other comprehensive earnings (loss) of equity affiliates 5 (2) 3 Other comprehensive earnings (loss) $ 160 (23) 137 Year ended December 31, 2016: Foreign currency translation adjustments $ (97) 13 (84) Share of other comprehensive earnings (loss) of equity affiliates (8) 3 (5) Other comprehensive earnings (loss) from discontinued operations (3) 1 (2) Other 10 (4) 6 Other comprehensive earnings (loss) $ (98) 13 (85) Year ended December 31, 2015: Foreign currency translation adjustments $ (118) 17 (101) Share of other comprehensive earnings (loss) of equity affiliates (6) 2 (4) Other comprehensive earnings (loss) from discontinued operations (27) 10 (17) Other comprehensive earnings (loss) $ (151) 29 (122) |
Commitments And Contingencies m
Commitments And Contingencies minimum lease payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases and build to suit leases | Years ending December 31: 2018 $ 78 2019 $ 70 2020 $ 58 2021 $ 51 2022 $ 42 Thereafter $ 201 |
Information About Liberty's O42
Information About Liberty's Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Information About Liberty's Operating Segments | |
Performance Measures By Segment | Years ended December 31, 2017 2016 2015 Adjusted Adjusted Adjusted Revenue OIBDA Revenue OIBDA Revenue OIBDA amounts in millions QVC Group QVC $ 8,771 1,897 8,682 1,840 8,743 1,894 HSN — — NA NA NA NA zulily 1,613 91 1,547 112 426 21 Corporate and other — (35) — (16) — (28) Inter-segment eliminations (3) — (10) — — — Total QVC Group 10,381 1,953 10,219 1,936 9,169 1,887 Ventures Group Corporate and other 23 (27) 428 3 820 59 Total Ventures Group 23 (27) 428 3 820 59 Consolidated Liberty $ 10,404 1,926 10,647 1,939 9,989 1,946 |
Other Information By Segment | December 31, 2017 December 31, 2016 Investments Investment Investments Investment Total in in Liberty Capital Total in in Liberty Capital assets affiliates Broadband expenditures assets affiliates Broadband expenditures amounts in millions QVC Group QVC $ 11,550 40 — 152 11,545 40 — 179 HSN 2,798 — — — NA NA NA NA zulily 2,323 — — 49 2,461 — — 27 Corporate and other 566 — — — 351 184 — — Total QVC Group 17,237 40 — 201 14,357 224 — 206 Ventures Group Corporate and other 6,885 269 3,635 3 5,998 357 3,161 27 Total Ventures Group 6,885 269 3,635 3 5,998 357 3,161 27 Inter-group eliminations — — — — — — Consolidated Liberty $ 24,122 309 3,635 204 20,355 581 3,161 233 |
Reconciliation Of Segment Adjusted OIBDA To Earnings (Loss) From Continuing Operations Before Income Taxes | Years ended December 31, 2017 2016 2015 amounts in millions Consolidated segment Adjusted OIBDA $ 1,926 1,939 1,946 Stock-based compensation (123) (97) (127) Depreciation and amortization (725) (874) (703) Acquisition and restructuring related costs (35) — — Operating income 1,043 968 1,116 Interest expense (355) (363) (360) Share of earnings (loss) of affiliates, net (200) (68) (178) Realized and unrealized gains (losses) on financial instruments, net 618 1,175 114 Gains (losses) on transactions, net 410 9 110 Other, net 7 131 14 Earnings (loss) from continuing operations before income taxes $ 1,523 1,852 816 |
Schedule of Revenue by geographic area | Years ended December 31, 2017 2016 2015 amounts in millions United States $ 7,684 7,979 7,412 Japan 934 900 811 Germany 899 866 850 Other foreign countries 887 902 916 $ 10,404 10,647 9,989 |
Schedule of Long-lived Assets by Geographic Area | December 31, 2017 2016 amounts in millions United States $ 895 694 Japan 143 145 Germany 164 154 Other foreign countries 139 138 $ 1,341 1,131 |
Quarterly Financial Informati43
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter amounts in millions, except per share amounts 2017: Revenue $ 2,327 2,352 2,381 3,344 Operating income $ 213 254 208 368 Earnings from continuing operations $ 519 184 308 1,476 Net earnings (loss) attributable to Liberty Interactive Corporation stockholders: Series A and Series B QVC Group common stock $ 91 111 119 887 Series A and Series B Liberty Ventures common stock $ 416 64 177 576 Basic net earnings (loss) from continuing operations attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.20 0.25 0.27 2.07 Series A and Series B Liberty Ventures common stock $ 4.89 0.75 2.06 6.70 Diluted net earnings (loss) from continuing operations attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.20 0.24 0.26 2.05 Series A and Series B Liberty Ventures common stock $ 4.84 0.74 2.03 6.70 Basic net earnings (loss) attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.20 0.25 0.27 2.07 Series A and Series B Liberty Ventures common stock $ 4.89 0.75 2.06 6.70 Diluted net earnings (loss) attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.20 0.24 0.26 2.05 Series A and Series B Liberty Ventures common stock $ 4.84 0.74 2.03 6.70 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter amounts in millions, except per share amounts 2016: Revenue $ 2,510 2,563 2,412 3,162 Operating income $ 189 250 157 372 Earnings from continuing operations $ 92 387 451 324 Net earnings (loss) attributable to Liberty Interactive Corporation stockholders: Series A and Series B QVC Group common stock $ 94 130 61 188 Series A and Series B Liberty Ventures common stock $ (26) 249 408 131 Basic net earnings (loss) from continuing operations attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.19 0.27 0.13 0.41 Series A and Series B Liberty Ventures common stock $ (0.07) 1.73 2.68 1.15 Diluted net earnings (loss) from continuing operations attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.19 0.27 0.13 0.40 Series A and Series B Liberty Ventures common stock $ (0.07) 1.72 2.64 1.15 Basic net earnings (loss) attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.19 0.27 0.13 0.41 Series A and Series B Liberty Ventures common stock $ (0.18) 1.75 2.87 1.21 Diluted net earnings (loss) attributable to Liberty Interactive Corporation stockholders per common share: Series A and Series B QVC Group common stock $ 0.19 0.27 0.13 0.40 Series A and Series B Liberty Ventures common stock $ (0.18) 1.74 2.83 1.21 |
Financial Information for Track
Financial Information for Tracking Stock Groups (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | BALANCE SHEET INFORMATION December 31, 2017 (unaudited) Attributed (note 1) QVC Ventures Consolidated Group Group Liberty amounts in millions Assets Current assets: Cash and cash equivalents $ 330 573 903 Trade and other receivables, net 1,719 7 1,726 Inventory, net 1,411 — 1,411 Other current assets 122 3 125 Total current assets 3,582 583 4,165 Investments in available-for-sale securities and other cost investments (note 1) 3 2,360 2,363 Investments in affiliates, accounted for using the equity method (note 1) 40 269 309 Investment in Liberty Broadband measured at fair value (note 1) — 3,635 3,635 Property and equipment, net 1,340 1 1,341 Intangible assets not subject to amortization 10,982 29 11,011 Intangible assets subject to amortization, net 1,244 4 1,248 Other assets, at cost, net of accumulated amortization 46 4 50 Total assets $ 17,237 6,885 24,122 Liabilities and Equity Current liabilities: Intergroup payable (receivable) $ 51 (51) — Accounts payable 1,150 1 1,151 Accrued liabilities 1,097 28 1,125 Current portion of debt (note 1) 17 979 996 Other current liabilities 167 2 169 Total current liabilities 2,482 959 3,441 Long-term debt (note 1) 6,686 867 7,553 Deferred income tax liabilities (note 3) 994 1,809 2,803 Other liabilities 147 95 242 Total liabilities 10,309 3,730 14,039 Equity/Attributed net assets (liabilities) 6,819 3,165 9,984 Noncontrolling interests in equity of subsidiaries 109 (10) 99 Total liabilities and equity $ 17,237 6,885 24,122 BALANCE SHEET INFORMATION December 31, 2016 (unaudited) Attributed (note 1) QVC Ventures Consolidated Group Group Liberty amounts in millions Assets Current assets: Cash and cash equivalents $ 338 487 825 Trade and other receivables, net 1,270 38 1,308 Inventory, net 968 — 968 Other current assets 66 2 68 Total current assets 2,642 527 3,169 Investments in available-for-sale securities and other cost investments (note 1) 4 1,918 1,922 Investments in affiliates, accounted for using the equity method (note 1) 224 357 581 Investment in Liberty Broadband measured at fair value (note 1) — 3,161 3,161 Property and equipment, net 1,131 — 1,131 Intangible assets not subject to amortization 9,325 29 9,354 Intangible assets subject to amortization, net 1,001 4 1,005 Other assets, at cost, net of accumulated amortization 30 2 32 Total assets $ 14,357 5,998 20,355 Liabilities and Equity Current liabilities: Intergroup payable (receivable) $ 113 (113) — Accounts payable 789 1 790 Accrued liabilities 684 22 706 Current portion of debt (note 1) 14 862 876 Other current liabilities 160 2 162 Total current liabilities 1,760 774 2,534 Long-term debt (note 1) 6,361 805 7,166 Deferred income tax liabilities (note 3) 1,116 2,520 3,636 Other liabilities 161 (3) 158 Total liabilities 9,398 4,096 13,494 Equity/Attributed net assets (liabilities) 4,860 1,912 6,772 Noncontrolling interests in equity of subsidiaries 99 (10) 89 Total liabilities and equity $ 14,357 5,998 20,355 |
Condensed Income Statement | STATEMENT OF OPERATIONS INFORMATION Year ended December 31, 2017 (unaudited) Attributed (note 1) QVC Ventures Consolidated Group Group Liberty amounts in millions Total revenue, net $ 10,381 23 10,404 Operating costs and expenses: Cost of retail sales (exclusive of depreciation shown separately below) 6,789 — 6,789 Operating expense 648 11 659 Selling, general and administrative, including stock-based compensation (note 2) 1,088 65 1,153 Acquisition and restructuring charges 35 — 35 Depreciation and amortization 721 4 725 9,281 80 9,361 Operating income (loss) 1,100 (57) 1,043 Other income (expense): Interest expense (293) (62) (355) Share of earnings (losses) of affiliates, net 38 (238) (200) Realized and unrealized gains (losses) on financial instruments, net — 618 618 Gains (losses) on transactions, net 409 1 410 Other, net (3) 10 7 151 329 480 Earnings (loss) from continuing operations before income taxes 1,251 272 1,523 Income tax benefit (expense) (note 3) 3 961 964 Net earnings (loss) 1,254 1,233 2,487 Less net earnings (loss) attributable to noncontrolling interests 46 — 46 Net earnings (loss) attributable to Liberty Interactive Corporation shareholders $ 1,208 1,233 2,441 STATEMENT OF OPERATIONS INFORMATION Year ended December 31, 2016 (unaudited) Attributed (note 1) QVC Ventures Consolidated Group Group Liberty amounts in millions Total revenue, net $ 10,219 428 10,647 Operating costs and expenses: Cost of retail sales (exclusive of depreciation shown separately below) 6,642 266 6,908 Operating expense 653 54 707 Selling, general and administrative, including stock-based compensation (note 2) 1,063 127 1,190 Depreciation and amortization 850 24 874 9,208 471 9,679 Operating income (loss) 1,011 (43) 968 Other income (expense): Interest expense (289) (74) (363) Share of earnings (losses) of affiliates, net 42 (110) (68) Realized and unrealized gains (losses) on financial instruments, net 2 1,173 1,175 Gains (losses) on transactions, net — 9 9 Other, net 42 89 131 (203) 1,087 884 Earnings (loss) from continuing operations before income taxes 808 1,044 1,852 Income tax benefit (expense) (note 3) (297) (301) (598) Earnings (loss) from continuing operations 511 743 1,254 Earnings (loss) from discontinued operations, net of taxes — 20 20 Net earnings (loss) 511 763 1,274 Less net earnings (loss) attributable to noncontrolling interests 38 1 39 Net earnings (loss) attributable to Liberty Interactive Corporation shareholders $ 473 762 1,235 STATEMENT OF OPERATIONS INFORMATION Year ended December 31, 2015 (unaudited) Attributed (note 1) QVC Ventures Consolidated Group Group Liberty amounts in millions Total revenue, net $ 9,169 820 9,989 Operating costs and expenses: Cost of retail sales (exclusive of depreciation shown separately below) 5,847 546 6,393 Operating expense 620 79 699 Selling, general and administrative, including stock-based compensation (note 2) 875 203 1,078 Depreciation and amortization 657 46 703 7,999 874 8,873 Operating income (loss) 1,170 (54) 1,116 Other income (expense): Interest expense (283) (77) (360) Share of earnings (losses) of affiliates, net 55 (233) (178) Realized and unrealized gains (losses) on financial instruments, net 42 72 114 Gains (losses) on transactions, net — 110 110 Other, net (6) 20 14 (192) (108) (300) Earnings (loss) before income taxes 978 (162) 816 Income tax benefit (expense) (note 3) (304) 119 (185) Earnings (loss) from continuing operations 674 (43) 631 Earnings (loss) from discontinued operations, net of taxes — 280 280 Net earnings (loss) 674 237 911 Less net earnings (loss) attributable to noncontrolling interests 34 8 42 Net earnings (loss) attributable to Liberty Interactive Corporation shareholders $ 640 229 869 |
Condensed Cash Flow Statement | STATEMENT OF CASH FLOWS INFORMATION Year ended December 31, 2017 (unaudited) Attributed (note 1) QVC Group Ventures Group Consolidated Liberty amounts in millions Cash flows from operating activities: Net earnings (loss) $ 1,254 1,233 2,487 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 721 4 725 Stock-based compensation 97 26 123 Share of (earnings) losses of affiliates, net (38) 238 200 Cash receipts from returns on equity investments 28 1 29 Realized and unrealized (gains) losses on financial instruments, net — (618) (618) (Gains) losses on transactions, net (409) (1) (410) Deferred income tax expense (benefit) (421) (715) (1,136) Intergroup tax allocation 266 (266) — Intergroup tax payments (288) 288 — Other noncash charges (credits), net 7 3 10 Changes in operating assets and liabilities Current and other assets 34 (143) Payables and other liabilities 182 43 225 Net cash provided (used) by operating activities 1,222 270 1,492 Cash flows from investing activities: Cash paid for acquisitions, net of cash acquired 22 — 22 Cash proceeds from dispositions of investments 2 1 3 Investment in and loans to cost and equity investees — (159) (159) Capital expended for property and equipment (201) (3) (204) Other investing activities, net (52) (1) (53) Net cash provided (used) by investing activities (229) (162) (391) Cash flows from financing activities: Borrowings of debt 2,469 — 2,469 Repayments of debt (2,618) (13) (2,631) Repurchases of QVC Group common stock (765) — (765) Withholding taxes on net share settlements of stock-based compensation (43) (27) (70) Other financing activities, net (57) 18 (39) Net cash provided (used) by financing activities (1,014) (22) (1,036) Effect of foreign currency exchange rates on cash 13 — 13 Net increase (decrease) in cash and cash equivalents (8) 86 78 Cash and cash equivalents at beginning of period 338 487 825 Cash and cash equivalents at end of period $ 330 573 903 STATEMENT OF CASH FLOWS INFORMATION Year ended December 31, 2016 (unaudited) Attributed (note 1) Consolidated QVC Group Ventures Group Liberty amounts in millions Cash flows from operating activities: Net earnings (loss) $ 511 763 1,274 Adjustments to reconcile net earnings to net cash provided by operating activities: (Earnings) loss from discontinued operations — (20) (20) Depreciation and amortization 850 24 874 Stock-based compensation 75 22 97 Cash payments for stock-based compensation — (92) (92) Noncash interest expense 3 9 12 Share of (earnings) losses of affiliates, net (42) 110 68 Cash receipts from returns on equity investments 28 3 31 Realized and unrealized (gains) losses on financial instruments, net (2) (1,173) (1,175) (Gains) losses on transactions, net — (9) (9) (Gains) losses on extinguishment of debt (1) 7 6 Deferred income tax expense (benefit) (199) 672 473 Intergroup tax allocation 360 (360) — Intergroup tax payments (301) 301 — Other noncash charges (credits), net (33) (82) (115) Changes in operating assets and liabilities Current and other assets 92 44 136 Payables and other liabilities (68) (49) (117) Net cash provided (used) by operating activities 1,273 170 1,443 Cash flows from investing activities: Cash proceeds from dispositions — 353 353 Investment in and loans to cost and equity investees — (86) (86) Capital expended for property and equipment (206) (27) (233) Purchases of short term investments and other marketable securities — (264) (264) Sales of short term investments and other marketable securities 12 1,162 1,174 Investment in Liberty Broadband — (2,400) (2,400) Other investing activities, net (44) 8 (36) Net cash provided (used) by investing activities (238) (1,254) (1,492) Cash flows from financing activities: Borrowings of debt 1,905 1,522 3,427 Repayments of debt (2,178) (2,320) (4,498) Repurchases of QVC Group common stock (799) — (799) Withholding taxes on net share settlements of stock-based compensation (15) (1) (16) Distribution from Liberty Expedia Holdings — 299 299 Other financing activities, net (16) 31 15 Net cash provided (used) by financing activities (1,103) (469) (1,572) Effect of foreign currency exchange rates on cash (20) — (20) Net cash provided (used) by discontinued operations: Cash provided (used) by operating activities — 17 17 Cash provided (used) by investing activities — — — Cash provided (used) by financing activities — — — Change in available cash held by discontinued operations — — — Net cash provided (used) by discontinued operations — 17 17 Net increase (decrease) in cash and cash equivalents (88) (1,536) (1,624) Cash and cash equivalents at beginning of period 426 2,023 2,449 Cash and cash equivalents at end of period $ 338 487 825 STATEMENT OF CASH FLOWS INFORMATION Year ended December 31, 2015 (unaudited) Attributed (note 1) Consolidated QVC Group Ventures Group Liberty amounts in millions Cash flows from operating activities: Net earnings (loss) $ 674 237 911 Adjustments to reconcile net earnings to net cash provided by operating activities: (Earnings) loss from discontinued operations — (280) (280) Depreciation and amortization 657 46 703 Stock-based compensation 60 67 127 Cash payments for stock-based compensation — (16) (16) Noncash interest expense 6 (1) 5 Share of losses (earnings) of affiliates, net (55) 233 178 Cash receipts from return on equity investments 22 10 32 Realized and unrealized gains (losses) on financial instruments, net (42) (72) (114) (Gains) losses on transactions, net — (110) (110) (Gains) losses on extinguishment of debt 21 — 21 Deferred income tax (benefit) expense (122) 19 (103) Intergroup tax allocation 141 (141) — Intergroup tax payments (101) 101 — Other noncash charges (credits), net (14) 3 (11) Changes in operating assets and liabilities Current and other assets (245) 8 (237) Payables and other current liabilities 3 (47) (44) Net cash provided (used) by operating activities 1,005 57 1,062 Cash flows from investing activities: Cash paid for acquisitions, net of cash acquired (824) (20) (844) Cash proceeds from dispositions — 271 271 Investments in and loans to cost and equity investees — (120) (120) Cash receipts from returns of equity investments 200 50 250 Capital expended for property and equipment (218) (40) (258) Purchases of short term and other marketable securities (184) (1,186) (1,370) Sales of short term investments and other marketable securities 193 1,166 1,359 Other investing activities, net (76) — (76) Net cash provided (used) by investing activities (909) 121 (788) Cash flows from financing activities: Borrowings of debt 3,969 589 4,558 Repayments of debt (3,244) (567) (3,811) Repurchases of QVC Group common stock (785) — (785) Minimum withholding taxes on net share settlements of stock-based compensation (25) (5) (30) Other financing activities, net (4) (50) (54) Net cash provided (used) by financing activities (89) (33) (122) Effect of foreign currency rates on cash (3) — (3) Net cash provided (used) by discontinued operations: Cash provided (used) by operating activities — 17 17 Cash provided (used) by investing activities — (23) (23) Cash provided (used) by financing activities — — — Change in available cash held by discontinued operations — — — Net cash provided (used) by discontinued operations — (6) (6) Net increase (decrease) in cash and cash equivalents 4 139 143 Cash and cash equivalents at beginning of period 422 1,884 2,306 Cash and cash equivalents at end period $ 426 2,023 2,449 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jul. 22, 2016shares | Oct. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 04, 2016USD ($) | Nov. 02, 2016USD ($) |
Reimbursement from Liberty Expedia Holdings | $ 4,000,000 | ||||||
Cash distributed to Liberty from Liberty Expedia Holdings | $ 299,000,000 | ||||||
Related Party Transaction, Amounts of Transaction | $ 11,000,000 | $ 10,000,000 | $ 13,000,000 | ||||
Liberty Ventures common stock | Common Class A | |||||||
Spilt-Off redemption ratio | 0.4 | ||||||
Liberty Ventures common stock | Common Class B | |||||||
Spilt-Off redemption ratio | 0.4 | ||||||
CommerceHub | Common Class A | |||||||
Shares issued as dividend | shares | 0.1 | ||||||
CommerceHub | Common Class B | |||||||
Shares issued as dividend | shares | 0.1 | ||||||
CommerceHub | Common Class C | |||||||
Shares issued as dividend | shares | 0.2 | ||||||
Liberty Expedia Holdings | Expedia Holdings Margin Loan | |||||||
Principal amount | $ 350,000,000 | ||||||
Liberty Expedia Holdings | Common Class A | |||||||
Spilt-Off redemption ratio | 0.4 | ||||||
Liberty Expedia Holdings | Common Class B | |||||||
Spilt-Off redemption ratio | 0.4 |
Tracking Stocks (Details)
Tracking Stocks (Details) $ / shares in Units, shares in Millions | Dec. 31, 2017USD ($)item | Dec. 29, 2017USD ($)shares | Apr. 04, 2017USD ($) | May 18, 2016USD ($)$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Number of tracking stocks | item | 2 | ||||||
Cash and cash equivalents | $ 903,000,000 | $ 825,000,000 | $ 2,449,000,000 | $ 2,306,000,000 | |||
Investments in and Advances to Affiliates, at Fair Value | $ 3,635,000,000 | 3,161,000,000 | |||||
1.75% Exchangeable Senior Debentures due 2046 | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||||
HSNi | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Percentage of equity method investee not currently owned | 62.00% | ||||||
HSNi | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Percentage of equity method investee not currently owned | 62.00% | ||||||
Equity value of acquired business | $ 1,900,000,000 | ||||||
Liberty Ventures common stock | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Reference price | $ 43.65 | ||||||
Liberty Ventures common stock | 1.75% Exchangeable Senior Debentures due 2046 | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||||
Liberty Broadband | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Investments in and Advances to Affiliates, at Fair Value | $ 2,400,000,000 | ||||||
QVC Group Common Stock | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Cash and cash equivalents | $ 330,000,000 | 338,000,000 | 426,000,000 | 422,000,000 | |||
Liberty Ventures common stock | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Cash and cash equivalents | 573,000,000 | 487,000,000 | $ 2,023,000,000 | $ 1,884,000,000 | |||
Investments in and Advances to Affiliates, at Fair Value | $ 3,635,000,000 | $ 3,161,000,000 | |||||
Price per share of Liberty Broadband Series C common stock | $ / shares | $ 56.23 | ||||||
Liberty Ventures common stock | 1.75% Exchangeable Senior Debentures due 2046 | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||||
Liberty Ventures common stock | Ventures Margin Loan | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Maximum Borrowing Capacity | $ 1,000,000,000 | ||||||
GCI | Spinoff | Common Class A | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Share exchange ratio | 0.63 | ||||||
Total consideration per share of GCI common stock | $ 27.50 | ||||||
GCI | Spinoff | Preferred Class A | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Share exchange ratio | 0.20 | ||||||
Total consideration per share of GCI common stock | $ 5 | ||||||
GCI | Spinoff | GCI common stock | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Total consideration per share of GCI common stock | $ 32.50 | ||||||
Liberty Broadband | Charter | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Payments to Acquire Equity Method Investments | $ 5,000,000,000 | ||||||
Broadband Holdco, LLC | Broadband Holdco Margin Loan | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Maximum Borrowing Capacity | $ 1,000,000,000 | ||||||
Number of common shares owned and pledged as collateral | shares | 42.7 | ||||||
Value of pledged collateral | $ 3,600,000,000 | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.85% | ||||||
Unused commitment fee percentage | 0.75% | ||||||
Margin loan outstanding borrowings | $ 0 | ||||||
Debt Instrument, Term | 2 years | ||||||
Minimum | GCI | Spinoff | Preferred Class A | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||||||
Maximum | GCI | Spinoff | Preferred Class A | |||||||
Targeted or Tracking Stock, Stock [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 7.00% |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Stock-based compensation | $ 123 | $ 97 | $ 127 | |||||||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | 33 | |||||||||||
Available-for-sale Securities, Noncurrent | $ 2,363 | $ 2,363 | $ 1,922 | 2,363 | 1,922 | |||||||
Available-for-sale securities | 2,275 | 2,275 | 1,846 | 2,275 | 1,846 | |||||||
Inventory Valuation Reserves | 93 | 93 | 76 | 93 | 76 | |||||||
Advertising Expense | 217 | 231 | 154 | |||||||||
Sales Returns and Allowances, Goods | 1,861 | 1,865 | 2,037 | |||||||||
Net earnings (loss) attributable to shareholders | 2,441 | 1,235 | 869 | |||||||||
Allowance for Doubtful Accounts Receivable, Current, Beginning Balance | $ 99 | $ 87 | 99 | 87 | 92 | |||||||
Provision for Doubtful Accounts | 73 | 109 | 84 | |||||||||
Premiums Receivable, Allowance for Doubtful Accounts, Write Offs Against Allowance | (79) | (96) | (88) | |||||||||
Allowance for Doubtful Accounts Receivable, Current, Ending Balance | 92 | 92 | 99 | 92 | 99 | 87 | ||||||
Property, Plant and Equipment, Gross | 2,564 | 2,564 | 2,163 | 2,564 | 2,163 | |||||||
Depreciation | 176 | 171 | 153 | |||||||||
Reclassification adjustments | 405 | |||||||||||
Allowance for sales returns, beginning balance | 98 | 106 | 109 | |||||||||
Additions, charged to earnings | 1,027 | 1,051 | 1,213 | |||||||||
Deductions | (1,023) | (1,060) | (1,216) | |||||||||
Allowance for sales returns, ending balance | 102 | 98 | $ 106 | |||||||||
Land | ||||||||||||
Property, Plant and Equipment, Gross | 108 | 108 | 81 | 108 | 81 | |||||||
Building and Building Improvements | ||||||||||||
Property, Plant and Equipment, Gross | 1,165 | 1,165 | 1,016 | 1,165 | 1,016 | |||||||
Support Equipment | ||||||||||||
Property, Plant and Equipment, Gross | 1,240 | 1,240 | 1,034 | 1,240 | 1,034 | |||||||
Projects in Progress | ||||||||||||
Property, Plant and Equipment, Gross | 51 | 51 | 32 | 51 | 32 | |||||||
QVC Group Common Stock | ||||||||||||
Available-for-sale Securities, Noncurrent | 3 | 3 | 4 | $ 3 | $ 4 | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 20,000,000 | 13,000,000 | 6,000,000 | |||||||||
Basic EPS (WA shares outstanding) | 445,000,000 | 476,000,000 | 475,000,000 | |||||||||
Potentially dilutive shares | 3,000,000 | 5,000,000 | 6,000,000 | |||||||||
Diluted EPS (WA shares outstanding) | 448,000,000 | 481,000,000 | 481,000,000 | |||||||||
Net earnings (loss) attributable to shareholders | 887 | $ 119 | $ 111 | 91 | 188 | $ 61 | $ 130 | 94 | $ 1,208 | $ 473 | $ 640 | |
Liberty Ventures common stock | ||||||||||||
Available-for-sale Securities, Noncurrent | 2,360 | 2,360 | 1,918 | $ 2,360 | $ 1,918 | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | |||||||||
Basic EPS (WA shares outstanding) | 86,000,000 | 134,000,000 | 142,000,000 | |||||||||
Potentially dilutive shares | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||
Diluted EPS (WA shares outstanding) | 87,000,000 | 135,000,000 | 143,000,000 | |||||||||
Net earnings (loss) attributable to shareholders | 576 | $ 177 | $ 64 | $ 416 | 131 | $ 408 | $ 249 | $ (26) | $ 1,233 | $ 762 | $ 229 | |
Minimum | Building and Building Improvements | ||||||||||||
Property, Plant and Equipment, Useful Life | 8 years | |||||||||||
Minimum | Support Equipment | ||||||||||||
Property, Plant and Equipment, Useful Life | 2 years | |||||||||||
Maximum | Building and Building Improvements | ||||||||||||
Property, Plant and Equipment, Useful Life | 20 years | |||||||||||
Maximum | Support Equipment | ||||||||||||
Property, Plant and Equipment, Useful Life | 15 years | |||||||||||
Fair Value Option Securities - AFS | ||||||||||||
Available-for-sale Securities, Noncurrent | $ 2,275 | $ 2,275 | $ 1,846 | $ 2,275 | 1,846 | |||||||
Other Expense [Member] | ||||||||||||
Provision for Doubtful Accounts | (1) | (1) | (1) | |||||||||
Continuing Operations [Member] | QVC Group Common Stock | ||||||||||||
Net earnings (loss) attributable to shareholders | 1,208 | 473 | 640 | |||||||||
Continuing Operations [Member] | Liberty Ventures common stock | ||||||||||||
Net earnings (loss) attributable to shareholders | $ 1,233 | 742 | (51) | |||||||||
Discontinued Operations [Member] | Liberty Ventures common stock | ||||||||||||
Net earnings (loss) attributable to shareholders | $ 20 | $ 280 |
Supplemental Disclosures to C48
Supplemental Disclosures to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Disclosures to Consolidated Statements of Cash Flow [Abstract] | |||
Fair value of assets acquired | $ 956 | $ 154 | |
Intangible assets not subject to amortization | 1,577 | $ 7 | 1,791 |
Intangible assets subject to amortization | 651 | (40) | 837 |
Net liabilities assumed | (977) | (214) | |
Deferred tax assets (liabilities) | (281) | 33 | (637) |
Fair value of equity consideration | 1,948 | 1,087 | |
Cash paid (received) for acquisitions, net of cash acquired | (22) | 844 | |
Cash paid for interest | 343 | 354 | 374 |
Cash paid for income taxes | $ 158 | $ 204 | $ 318 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, shares in Millions | Dec. 29, 2017USD ($)shares | Oct. 02, 2015USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Cash and cash equivalents | $ 22,000,000 | ||||
Property and equipment | 214,000,000 | ||||
Other assets | 752,000,000 | ||||
Goodwill | 950,000,000 | $ 7,082,000,000 | $ 6,052,000,000 | $ 6,112,000,000 | |
Trademarks | 676,000,000 | ||||
Intangible assets subject to amortization | 602,000,000 | ||||
Accounts payable & Accrued liabilities | (515,000,000) | ||||
Debt | (460,000,000) | ||||
Other liabilities assumed | (12,000,000) | ||||
Deferred tax liabilities | (281,000,000) | ||||
Total | 1,948,000,000 | ||||
Business Acquisition, Pro Forma Information | |||||
Pro Forma Revenue | 13,791,000,000 | 14,220,000,000 | |||
Pro Forma Income (Loss) from Continuing Operations before Changes in Accounting and Extraordinary Items, Net of Tax | 2,200,000,000 | 1,258,000,000 | |||
Goodwill, Purchase Accounting Adjustments | 57,000,000 | ||||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | (40,000,000) | ||||
Indefinite-lived Intangible Assets, Purchase Accounting Adjustments | (50,000,000) | ||||
Deferred Tax Liabilities Purchase Accounting Adjustments | (33,000,000) | ||||
Business Acquisition, Amortization Adjustment Recognized During Measurement Period | 3,000,000 | ||||
Equity Method Investments | 309,000,000 | 581,000,000 | |||
Stock-based compensation | 123,000,000 | 97,000,000 | 127,000,000 | ||
Restructuring Charges | 35,000,000 | ||||
zulily | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Cash and cash equivalents | $ 341,000,000 | ||||
Property and equipment | 105,000,000 | ||||
Other assets | 46,000,000 | ||||
Goodwill | 917,000,000 | ||||
Trademarks | 870,000,000 | ||||
Intangible assets subject to amortization | 790,000,000 | ||||
Accounts payable & Accrued liabilities | (145,000,000) | ||||
Other liabilities assumed | (65,000,000) | ||||
Deferred tax liabilities | (607,000,000) | ||||
Total | 2,252,000,000 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | ||||
Business Acquisition, Pro Forma Information | |||||
Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 34,000,000 | ||||
Business Combination, Consideration Transferred | $ 2,300,000,000 | ||||
Business Acquisition, Share Price | $ / shares | $ 9.375 | ||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 1,200,000,000 | ||||
Goodwill, Purchase Accounting Adjustments | 57,000,000 | ||||
Business Acquisition Equity Interests Issued or Issuable Number Of Shares Issued Per Shares Acquired | 0.3098 | ||||
zulily | Customer Relationships | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets subject to amortization | $ 490,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | ||||
zulily | Email lists | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets subject to amortization | $ 250,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | ||||
zulily | Capitalized Software | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets subject to amortization | $ 50,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||
HSNi | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 0 | ||||
Business Acquisition, Pro Forma Information | |||||
Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 43,000,000 | ||||
Percentage of equity method investee not currently owned | 62.00% | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 62.00% | ||||
Equity Method Investments | $ 605,000,000 | ||||
Equity value of acquired business | 1,900,000,000 | ||||
Remeasurement Gain | 409,000,000 | ||||
HSNi | Customer Relationships | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets subject to amortization | $ 425,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | ||||
HSNi | Capitalized Software | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets subject to amortization | $ 16,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | ||||
HSNi | Technology | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets subject to amortization | $ 161,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
QVC Group Common Stock | |||||
Business Acquisition, Pro Forma Information | |||||
Equity Method Investments | 40,000,000 | 224,000,000 | |||
Restructuring Charges | 35,000,000 | ||||
QVC Group Common Stock | HSNi | |||||
Business Acquisition, Pro Forma Information | |||||
Business Acquisition Equity Interests Issued or Issuable Number Of Shares Issued Per Shares Acquired | 1.65 | ||||
Liberty Ventures common stock | |||||
Business Acquisition, Pro Forma Information | |||||
Equity Method Investments | 269,000,000 | 357,000,000 | |||
Common Class A | QVC Group Common Stock | zulily | |||||
Business Acquisition, Pro Forma Information | |||||
Stock Issued During Period Shares Acquisitions] | shares | 38.5 | ||||
Common Class A | QVC Group Common Stock | HSNi | |||||
Business Acquisition, Pro Forma Information | |||||
Stock Issued During Period Shares Acquisitions] | shares | 53.6 | ||||
Value of shares issued to acquire business | $ 1,300,000,000 | ||||
QVC | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Goodwill | 5,190,000,000 | 5,110,000,000 | 5,149,000,000 | ||
QVC | QVC Group Common Stock | |||||
Business Acquisition, Pro Forma Information | |||||
Equity Method Investments | 40,000,000 | 40,000,000 | |||
zulily | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Goodwill | 917,000,000 | 917,000,000 | 860,000,000 | ||
HSN | |||||
Business Acquisition, Pro Forma Information | |||||
Business acquisition costs, including stock-based compensation | 38,000,000 | ||||
Stock-based compensation | 8,000,000 | ||||
Corporate and Other | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Goodwill | 42,000,000 | 25,000,000 | $ 103,000,000 | ||
Corporate and Other | QVC Group Common Stock | |||||
Business Acquisition, Pro Forma Information | |||||
Equity Method Investments | 184,000,000 | ||||
Corporate and Other | Liberty Ventures common stock | |||||
Business Acquisition, Pro Forma Information | |||||
Equity Method Investments | 269,000,000 | $ 357,000,000 | |||
Corporate and Other Cornerstone | |||||
Business Acquisition, Pro Forma Information | |||||
Restructuring Charges | $ 5,000,000 |
Disposals (Details)
Disposals (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Backcountry | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | $ 227 | |||
Earnings (loss) attributable to parent | (3) | |||
Consideration from sale of business | $ 350 | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 105 | |||
CommerceHub | Disposal Group, Not Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | $ 51 | 89 | ||
Disposal Group Net Earnings (Loss) | $ 5 | (10) | ||
Disposal Group Total Assets | $ 115 | $ 115 | ||
Liberty Ventures common stock | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | $ 0.15 | $ 1.97 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share | $ 0.15 | $ 1.96 | ||
Bodybuilding | Liberty Expedia Holdings | Disposal Group, Not Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | $ 355 | $ 464 | ||
Disposal Group Net Earnings (Loss) | 6 | 3 | ||
Disposal Group Total Assets | 198 | 198 | ||
Expedia | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Earnings (loss) before income taxes | 24 | 437 | ||
Income tax (expense) benefit | $ (4) | $ (157) | ||
Current assets of Expedia, Inc. | 2,976 | |||
Total assets of Expedia, Inc. | 15,486 | |||
Current liabilities of Expedia, Inc. | 5,926 | |||
Total liabilities of Expedia, Inc. | 10,556 | |||
Total equity of Expedia, Inc. | 4,930 | |||
Total operating income of Expedia, Inc. | 414 | |||
Gain on sale of business, Expedia, Inc. | 509 | |||
Income tax (benefit), Expedia, Inc. | (203) | |||
Net earnings (loss) attributable to Expedia shareholders, Expedia, Inc. | 764 | |||
Investments in affiliates, accounted for using the equity method, disposal group | 927 | |||
Deferred income tax liabilities, disposal group | $ 285 |
Assets And Liabilities Measur51
Assets And Liabilities Measured At Fair Value (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 655 | $ 625 |
Available-for-sale securities | 2,275 | 1,846 |
Investments in and Advances to Affiliates, at Fair Value | 3,635 | 3,161 |
Debt | 1,846 | 1,667 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 655 | 625 |
Available-for-sale securities | 2,275 | 1,846 |
Investments in and Advances to Affiliates, at Fair Value | 3,635 | 3,161 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 1,846 | $ 1,667 |
Assets And Liabilities Measur52
Assets And Liabilities Measured At Fair Value Realized Unrealized Gain Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments, net | $ 618 | $ 1,175 | $ 114 |
Fair Value Option Securities - AFS | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments, net | 434 | 723 | 84 |
Fair Value Option Securities - Liberty Broadband | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments, net | 473 | 761 | |
Exchangeable Senior Debentures | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments, net | (193) | (308) | $ 30 |
Other Financial Instruments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments, net | $ (96) | $ (1) |
Investments In Available-For-53
Investments In Available-For-Sale Securities And Other Cost Investments (Investments In Available-For-Sale Securities And Other Cost Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Investments in available-for-sale securities and other cost investments | ||
Investments in available-for-sale securities and other cost investments | $ 2,363 | $ 1,922 |
QVC Group Common Stock | ||
Schedule of Investments in available-for-sale securities and other cost investments | ||
Investments in available-for-sale securities and other cost investments | 3 | 4 |
Liberty Ventures common stock | ||
Schedule of Investments in available-for-sale securities and other cost investments | ||
Investments in available-for-sale securities and other cost investments | 2,360 | 1,918 |
Other Investments | Liberty Ventures common stock | ||
Schedule of Investments in available-for-sale securities and other cost investments | ||
Investments in available-for-sale securities and other cost investments | 86 | 73 |
Charter | Liberty Ventures common stock | ||
Schedule of Investments in available-for-sale securities and other cost investments | ||
Investments in available-for-sale securities and other cost investments | 1,800 | 1,543 |
ILG | Liberty Ventures common stock | ||
Schedule of Investments in available-for-sale securities and other cost investments | ||
Investments in available-for-sale securities and other cost investments | 474 | 302 |
Fair Value Option, Other Eligible Items | QVC Group Common Stock | ||
Schedule of Investments in available-for-sale securities and other cost investments | ||
Investments in available-for-sale securities and other cost investments | $ 3 | $ 4 |
Investments In Affiliates Acc54
Investments In Affiliates Accounted For Using The Equity Method (Summary of Carrying Amount and Percentage Ownership of Significant Investments in Affiliates) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Carrying amount | $ 309,000 | $ 581,000 | |
LendingTree | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment additional shares purchased | 450 | ||
QVC Group Common Stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying amount | $ 40,000 | 224,000 | |
QVC Group Common Stock | HSNi | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage ownership | 100.00% | ||
Carrying amount | 184,000 | ||
QVC Group Common Stock | Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying amount | $ 40,000 | 40,000 | |
Liberty Ventures common stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying amount | 269,000 | 357,000 | |
Equity Method Investment Other Than Temporary Impairment | $ 98,000 | ||
Liberty Ventures common stock | Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying amount | $ 81,000 | 110,000 | |
Liberty Ventures common stock | FTD | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage ownership | 37.00% | ||
Market value | $ 73,000 | ||
Carrying amount | $ 73,000 | 216,000 | |
Liberty Ventures common stock | LendingTree | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage ownership | 27.00% | ||
Market value | $ 1,098,000 | ||
Carrying amount | $ 115,000 | $ 31,000 |
Investments In Affiliates Acc55
Investments In Affiliates Accounted For Using The Equity Method (Summary of Share Earnings (Losses) of Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Share of earnings (losses) of affiliates, net | $ (200) | $ (68) | $ (178) |
QVC Group Common Stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Share of earnings (losses) of affiliates, net | 38 | 42 | 55 |
QVC Group Common Stock | HSNi | |||
Schedule of Equity Method Investments [Line Items] | |||
Share of earnings (losses) of affiliates, net | 40 | 48 | 64 |
QVC Group Common Stock | Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Share of earnings (losses) of affiliates, net | (2) | (6) | (9) |
Liberty Ventures common stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Share of earnings (losses) of affiliates, net | (238) | (110) | (233) |
Liberty Ventures common stock | FTD | |||
Schedule of Equity Method Investments [Line Items] | |||
Share of earnings (losses) of affiliates, net | (146) | (41) | (83) |
Liberty Ventures common stock | LendingTree | |||
Schedule of Equity Method Investments [Line Items] | |||
Share of earnings (losses) of affiliates, net | 7 | 12 | 2 |
Liberty Ventures common stock | Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Share of earnings (losses) of affiliates, net | $ (99) | $ (81) | $ (152) |
Investments In Affiliates Acc56
Investments In Affiliates Accounted For Using The Equity Method (Other Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 29, 2017 | Feb. 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 18, 2016 |
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in and Advances to Affiliates, at Fair Value | $ 3,635 | $ 3,161 | ||||
HSNi | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of equity method investee not currently owned | 62.00% | |||||
Liberty Broadband | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in and Advances to Affiliates, at Fair Value | $ 2,400 | |||||
Ownership Interest In Investee | 23.50% | |||||
TREE variable postpaid forward member | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Unrealized Gain (Loss) on Derivatives | $ (95) | |||||
TREE variable postpaid forward member | Ventures Holdco, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Derivative, Term of Contract | 2 years | |||||
Derivative, Notional Amount | $ 110 | |||||
Derivative, number of shares pledged | 642,850 | |||||
Derivative, value of shares purchased | $ 77 | |||||
QVC Group Common Stock | HSNi | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Dividends or Distributions | $ 200 | 28 | 28 | $ 228 | ||
Dividend Received Per Share From Equity Method Affiliate | $ 10 | |||||
Liberty Ventures common stock | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment Other Than Temporary Impairment | $ 98 | |||||
Investments in and Advances to Affiliates, at Fair Value | $ 3,635 | $ 3,161 |
Intangible Assets (Changes In T
Intangible Assets (Changes In The Carrying Amount Of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance, beginning of the year | $ 6,052 | $ 6,112 |
Acquisitions prior year | 57 | |
Acquisitions | 950 | |
Goodwill, Purchase Accounting Adjustments | 57 | |
Sale of subsidiary | (78) | |
Foreign currency translation adjustments | 80 | (39) |
Balance, end of the year | 7,082 | 6,052 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross carrying amount | 5,354 | 6,154 |
Accumulated amortization | (4,106) | (5,149) |
Finite-Lived Intangible Assets, Net | 1,248 | 1,005 |
QVC | ||
Goodwill [Roll Forward] | ||
Balance, beginning of the year | 5,110 | 5,149 |
Foreign currency translation adjustments | 80 | (39) |
Balance, end of the year | 5,190 | 5,110 |
zulily | ||
Goodwill [Roll Forward] | ||
Balance, beginning of the year | 917 | 860 |
Acquisitions prior year | 57 | |
Balance, end of the year | 917 | 917 |
HSNi | ||
Goodwill [Roll Forward] | ||
Acquisitions | 933 | |
Balance, end of the year | 933 | |
Corporate and Other | ||
Goodwill [Roll Forward] | ||
Balance, beginning of the year | 25 | 103 |
Acquisitions | 17 | |
Sale of subsidiary | (78) | |
Balance, end of the year | 42 | 25 |
Television distribution Rights [Member] | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross carrying amount | 730 | 2,279 |
Accumulated amortization | (652) | (2,095) |
Finite-Lived Intangible Assets, Net | 78 | 184 |
Customer Relationships | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross carrying amount | 3,356 | 2,910 |
Accumulated amortization | (2,626) | (2,394) |
Finite-Lived Intangible Assets, Net | 730 | 516 |
Other Intangible Assets [Member] | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross carrying amount | 1,268 | 965 |
Accumulated amortization | (828) | (660) |
Finite-Lived Intangible Assets, Net | $ 440 | $ 305 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | Dec. 29, 2017 | Nov. 04, 2016 | Jul. 22, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted average useful life at time of acquisition | 9 years | |||||
Amortization of Intangible Assets | $ 549 | $ 703 | $ 550 | |||
Goodwill, Impaired, Accumulated Impairment Loss | $ 56 | |||||
Goodwill, Purchase Accounting Adjustments | 57 | |||||
Liberty Expedia Holdings | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Decrease to goodwill due to spin-off | $ 57 | |||||
CommerceHub | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Decrease to goodwill due to spin-off | $ 21 | |||||
zulily | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill, Purchase Accounting Adjustments | $ 57 | |||||
HSNi | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Percentage of equity method investee not currently owned | 62.00% |
Intangible Assets (Amortization
Intangible Assets (Amortization Expense For The Next Five Fiscal Years) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 401 |
2,018 | 236 |
2,019 | 162 |
2,020 | 129 |
2,021 | $ 77 |
Long-Term Debt (Debt Excluding
Long-Term Debt (Debt Excluding Intergroup Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2016 |
Outstanding principal | $ 8,681 | ||
Total consolidated debt | 8,549 | $ 8,042 | |
Less debt classified as current | (996) | (876) | |
Long-term debt, including current portion | $ 7,553 | 7,166 | |
8.5% Senior Debentures Due 2029 | |||
Debt instrument interest rate | 8.50% | ||
8.25% Senior Debentures Due 2030 | |||
Debt instrument interest rate | 8.25% | ||
4% Exchangeable Senior Debentures Due 2029 | |||
Debt instrument interest rate | 4.00% | ||
3.75% Exchangeable Senior Debentures Due 2030 | |||
Debt instrument interest rate | 3.75% | ||
3.5% Exchangeable Senior Debentures Due 2031 | |||
Debt instrument interest rate | 3.50% | ||
0.75% Exchangeable Senior Debentures due 2043 | |||
Debt instrument interest rate | 0.75% | ||
1.75% Exchangeable Senior Debentures due 2046 | |||
Outstanding principal | $ 750 | $ 750 | |
Total consolidated debt | $ 868 | 805 | |
Debt instrument interest rate | 1.75% | ||
QVC 3.125% Senior Secured Notes Due 2019 [Member] | |||
Debt instrument interest rate | 3.125% | ||
QVC Group Common Stock | |||
Outstanding principal | $ 6,734 | ||
Total consolidated debt | 6,703 | 6,375 | |
Less debt classified as current | (17) | (14) | |
Long-term debt, including current portion | 6,686 | 6,361 | |
Deferred loan costs | (24) | (28) | |
QVC Group Common Stock | 8.5% Senior Debentures Due 2029 | |||
Outstanding principal | 287 | ||
Total consolidated debt | $ 285 | 285 | |
Debt instrument interest rate | 8.50% | ||
QVC Group Common Stock | 8.25% Senior Debentures Due 2030 | |||
Outstanding principal | $ 504 | ||
Total consolidated debt | $ 502 | 501 | |
Debt instrument interest rate | 8.25% | ||
QVC Group Common Stock | QVC 3.125% Senior Secured Notes Due 2019 [Member] | |||
Outstanding principal | $ 400 | ||
Total consolidated debt | 399 | 399 | |
QVC Group Common Stock | QVC 5.125% Senior Secured Notes Due 2022 [Member] | |||
Outstanding principal | 500 | ||
Total consolidated debt | $ 500 | 500 | |
Debt instrument interest rate | 5.125% | ||
QVC Group Common Stock | QVC 4.375% Senior Secured Notes due 2023 | |||
Outstanding principal | $ 750 | ||
Total consolidated debt | $ 750 | 750 | |
Debt instrument interest rate | 4.375% | ||
QVC Group Common Stock | QVC 4.85% Senior Secured Notes Due 2024 [Member] | |||
Outstanding principal | $ 600 | ||
Total consolidated debt | $ 600 | 600 | |
Debt instrument interest rate | 4.85% | ||
QVC Group Common Stock | QVC 4.45% Senior Secured Notes Due 2025 [Member] | |||
Outstanding principal | $ 600 | ||
Total consolidated debt | $ 599 | 599 | |
Debt instrument interest rate | 4.45% | ||
QVC Group Common Stock | QVC 5.45% Senior Secured Notes Due 2034 [Member] | |||
Outstanding principal | $ 400 | ||
Total consolidated debt | $ 399 | 399 | |
Debt instrument interest rate | 5.45% | ||
QVC Group Common Stock | QVC 5.95% Senior Secured Notes due 2043 | |||
Outstanding principal | $ 300 | ||
Total consolidated debt | $ 300 | 300 | |
Debt instrument interest rate | 5.95% | ||
QVC Group Common Stock | Amendment No. 2 QVC Bank Credit Facility | |||
Outstanding principal | $ 1,763 | ||
Total consolidated debt | 1,763 | 1,896 | |
QVC Group Common Stock | HSNi Bank Credit Facility | |||
Outstanding principal | 460 | ||
Total consolidated debt | 460 | ||
QVC Group Common Stock | Other Debt [Member] | |||
Outstanding principal | 170 | ||
Total consolidated debt | 170 | 174 | |
Liberty Ventures common stock | |||
Outstanding principal | 1,947 | ||
Total consolidated debt | 1,846 | 1,667 | |
Less debt classified as current | (979) | (862) | |
Long-term debt, including current portion | 867 | 805 | |
Liberty Ventures common stock | 4% Exchangeable Senior Debentures Due 2029 | |||
Outstanding principal | 434 | ||
Total consolidated debt | $ 316 | 276 | |
Debt instrument interest rate | 4.00% | ||
Liberty Ventures common stock | 3.75% Exchangeable Senior Debentures Due 2030 | |||
Outstanding principal | $ 435 | ||
Total consolidated debt | $ 318 | 267 | |
Debt instrument interest rate | 3.75% | ||
Liberty Ventures common stock | 3.5% Exchangeable Senior Debentures Due 2031 | |||
Outstanding principal | $ 328 | ||
Total consolidated debt | $ 342 | 316 | |
Debt instrument interest rate | 3.50% | ||
Liberty Ventures common stock | 0.75% Exchangeable Senior Debentures due 2043 | |||
Total consolidated debt | $ 2 | $ 3 | |
Debt instrument interest rate | 0.75% | ||
Liberty Ventures common stock | 1.75% Exchangeable Senior Debentures due 2046 | |||
Debt instrument interest rate | 1.75% |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Mar. 01, 2018USD ($) | Jan. 31, 2018$ / shares | Dec. 31, 2017USD ($) | Dec. 29, 2017USD ($) | Jun. 23, 2016USD ($) | Apr. 15, 2015USD ($) | Jan. 27, 2015USD ($) | Aug. 31, 2016USD ($)$ / shares | May 31, 2016USD ($) | Jun. 30, 2012USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Apr. 24, 2017USD ($) | Apr. 04, 2017USD ($) | Mar. 09, 2015USD ($) | Aug. 21, 2014USD ($) | Mar. 18, 2014USD ($) | May 22, 2012$ / shares |
Loss on extinguishment of debt | $ (6,000,000) | $ (21,000,000) | |||||||||||||||||
Debt Instrument Carrying Amount | $ 8,681,000,000 | $ 8,681,000,000 | |||||||||||||||||
Debt, Current | 996,000,000 | 996,000,000 | 876,000,000 | ||||||||||||||||
Senior Debentures | |||||||||||||||||||
Debt Instrument, Unamortized Discount | $ 4,000,000 | $ 4,000,000 | 5,000,000 | ||||||||||||||||
Motorola Mobility [Member] | |||||||||||||||||||
Business Acquisition, Share Price | $ / shares | $ 40 | ||||||||||||||||||
8.5% Senior Debentures Due 2029 | |||||||||||||||||||
Interest rate (as a percent) | 8.50% | 8.50% | |||||||||||||||||
8.25% Senior Debentures Due 2030 | |||||||||||||||||||
Interest rate (as a percent) | 8.25% | 8.25% | |||||||||||||||||
Exchangeable Senior Debentures | |||||||||||||||||||
Debt, Current | $ 978,000,000 | $ 978,000,000 | |||||||||||||||||
QVC 3.125% Senior Secured Notes Due 2019 [Member] | |||||||||||||||||||
Interest rate (as a percent) | 3.125% | 3.125% | |||||||||||||||||
4% Exchangeable Senior Debentures Due 2029 | |||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000 | $ 1,000 | |||||||||||||||||
Interest rate (as a percent) | 4.00% | 4.00% | |||||||||||||||||
4% Exchangeable Senior Debentures Due 2029 | Sprint [Member] | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 3.2265 | ||||||||||||||||||
4% Exchangeable Senior Debentures Due 2029 | Century Link, Inc. [Member] | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 0.7860 | ||||||||||||||||||
3.75% Exchangeable Senior Debentures Due 2030 | |||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000 | $ 1,000 | |||||||||||||||||
Interest rate (as a percent) | 3.75% | 3.75% | |||||||||||||||||
3.75% Exchangeable Senior Debentures Due 2030 | Sprint [Member] | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 2.3578 | ||||||||||||||||||
3.75% Exchangeable Senior Debentures Due 2030 | Century Link, Inc. [Member] | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 0.5746 | ||||||||||||||||||
3.5% Exchangeable Senior Debentures Due 2031 | |||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000 | $ 1,000 | |||||||||||||||||
Repayments of Debt | $ 111,000,000 | ||||||||||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | |||||||||||||||||
3.5% Exchangeable Senior Debentures Due 2031 | Motorola Solutions [Member] | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 5.2598 | ||||||||||||||||||
Stock split, conversion ratio | 7 | ||||||||||||||||||
3.5% Exchangeable Senior Debentures Due 2031 | Motorola Mobility [Member] | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 4.6024 | ||||||||||||||||||
Stock split, conversion ratio | 8 | ||||||||||||||||||
0.75% Exchangeable Senior Debentures due 2043 | |||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000 | $ 1,000 | |||||||||||||||||
Debt exchanged | 523,000,000 | ||||||||||||||||||
Extraordinary Distribution to Bondholder | $ 11.9399 | $ 325,000,000 | |||||||||||||||||
Interest rate (as a percent) | 0.75% | 0.75% | |||||||||||||||||
Proceeds from (Repayments of) Long-term Debt and Capital Securities | 1,181,000,000 | ||||||||||||||||||
0.75% Exchangeable Senior Debentures due 2043 | Time Warner Cable Inc | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 3.1648 | ||||||||||||||||||
0.75% Exchangeable Senior Debentures due 2043 | Time Warner Inc | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 5.1635 | ||||||||||||||||||
0.75% Exchangeable Senior Debentures due 2043 | Time Inc | |||||||||||||||||||
Cash consideration per share due to acquisition | $ / shares | $ 18.50 | ||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 0.6454 | ||||||||||||||||||
1.75% Exchangeable Senior Debentures due 2046 | |||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000,000 | ||||||||||||||||||
Interest rate (as a percent) | 1.75% | 1.75% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | ||||||||||||||||
1.75% Exchangeable Senior Debentures due 2046 | Charter | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 2.9317 | ||||||||||||||||||
Exchange Price of Shares Attributable to Debentures | $ / shares | $ 341.10 | ||||||||||||||||||
principal repayment per debenture [Member] | 3.5% Exchangeable Senior Debentures Due 2031 | |||||||||||||||||||
Repayments of Debt | $ 184.096 | ||||||||||||||||||
Adjusted face amount per debenture [Member] | 3.5% Exchangeable Senior Debentures Due 2031 | |||||||||||||||||||
Debt instrument, face amount per debenture | $ 547 | $ 547 | |||||||||||||||||
HSNi | HSNi interest rate swap | |||||||||||||||||||
Derivative, Notional Amount | $ 250,000,000 | ||||||||||||||||||
Derivative, Fixed Interest Rate | 1.05% | ||||||||||||||||||
Debt Instrument Interest Rate Including Derivative Fixed Rate | 2.3525% | ||||||||||||||||||
HSNi | HSNi Bank Credit Facility | |||||||||||||||||||
Maximum Borrowing Capacity | $ 1,750,000,000 | ||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||
Percentage secured by US subsidiaries | 100.00% | ||||||||||||||||||
Percentage secured by foreign subsidiaries | 65.00% | ||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 750,000,000 | ||||||||||||||||||
Secured Debt | 1,250,000,000 | ||||||||||||||||||
HSNi | HSNi Bank Credit Facility | Senior secured note [Member] | |||||||||||||||||||
Secured Debt | $ 500,000,000 | ||||||||||||||||||
HSNi | Amendment No. 1 HSNi Bank Credit Facility | |||||||||||||||||||
Maximum Borrowing Capacity | $ 1,000,000,000 | ||||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||||||||||||||
QVC | Interest Rate Swap [Member] | |||||||||||||||||||
Derivative, Notional Amount | 125,000,000 | ||||||||||||||||||
QVC | QVC 3.125% Senior Secured Notes Due 2019 [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 400,000,000 | ||||||||||||||||||
Interest rate (as a percent) | 3.125% | 3.125% | |||||||||||||||||
Debt issuance price as percent of par | 99.828% | ||||||||||||||||||
QVC | QVC 5.125% Senior Secured Notes Due 2022 [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | |||||||||||||||||
Interest rate (as a percent) | 5.125% | 5.125% | |||||||||||||||||
QVC | QVC 4.375% Senior Secured Notes due 2023 | |||||||||||||||||||
Debt Instrument, Face Amount | $ 750,000,000 | $ 750,000,000 | |||||||||||||||||
Interest rate (as a percent) | 4.375% | 4.375% | |||||||||||||||||
QVC | QVC 4.85% Senior Secured Notes Due 2024 [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 600,000,000 | ||||||||||||||||||
Interest rate (as a percent) | 4.85% | 4.85% | |||||||||||||||||
Debt issuance price as percent of par | 99.927% | ||||||||||||||||||
QVC | QVC 4.45% Senior Secured Notes Due 2025 [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 600,000,000 | ||||||||||||||||||
Interest rate (as a percent) | 4.45% | 4.45% | |||||||||||||||||
Debt issuance price as percent of par | 99.86% | ||||||||||||||||||
QVC | QVC 5.45% Senior Secured Notes Due 2034 [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 400,000,000 | ||||||||||||||||||
Interest rate (as a percent) | 5.45% | 5.45% | |||||||||||||||||
Debt issuance price as percent of par | 99.784% | ||||||||||||||||||
QVC | QVC 5.95% Senior Secured Notes due 2043 | |||||||||||||||||||
Debt Instrument, Face Amount | $ 300,000,000 | $ 300,000,000 | |||||||||||||||||
Interest rate (as a percent) | 5.95% | 5.95% | |||||||||||||||||
QVC | QVC 7.375% Senior Secured Notes Due 2020 | |||||||||||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | |||||||||||||||||
Interest rate (as a percent) | 7.375% | 7.375% | |||||||||||||||||
QVC | QVC 7.375% Senior Secured Notes Due 2020 | Senior secured note [Member] | |||||||||||||||||||
Debt Instrument, Repurchase Amount | $ 1,036.88 | ||||||||||||||||||
Debt Instrument, Face Amount | 1,000 | ||||||||||||||||||
Extinguishment of Debt, Amount | $ 500,000,000 | ||||||||||||||||||
QVC | Amendment No. 2 QVC Bank Credit Facility | |||||||||||||||||||
Maximum Borrowing Capacity | $ 2,250,000,000 | ||||||||||||||||||
QVC | Amendment No. 3 QVC Bank Credit Facility | |||||||||||||||||||
Maximum Borrowing Capacity | $ 2,650,000,000 | ||||||||||||||||||
Remaining borrowing capacity | $ 877,000,000 | $ 877,000,000 | |||||||||||||||||
Debt Instrument, Interest Rate During Period | 3.00% | ||||||||||||||||||
QVC | Standby Letters of Credit | |||||||||||||||||||
Maximum Borrowing Capacity | 300,000,000 | 250,000,000 | |||||||||||||||||
Remaining borrowing capacity | $ 10,000,000 | 10,000,000 | |||||||||||||||||
QVC | Uncommitted Incremental Revolving Loan Commitments or Incremental Term Loans | |||||||||||||||||||
Maximum Borrowing Capacity | 1,500,000,000 | $ 1,500,000,000 | |||||||||||||||||
QVC | Portion of Credit Facility Available Only to QVC | |||||||||||||||||||
Maximum Borrowing Capacity | 2,250,000,000 | ||||||||||||||||||
QVC | Portion of Credit Facility Available to QVC and zulily | |||||||||||||||||||
Maximum Borrowing Capacity | 400,000,000 | ||||||||||||||||||
QVC | Portion of Credit Facility that matures on March 9, 2020 [Member] | |||||||||||||||||||
Maximum Borrowing Capacity | $ 140,000,000 | ||||||||||||||||||
LIBOR | QVC | Amendment No. 3 QVC Bank Credit Facility | |||||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||||||||||||||
ABR | QVC | Amendment No. 3 QVC Bank Credit Facility | |||||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | ABR | ||||||||||||||||||
Minimum | HSNi | Amendment No. 1 HSNi Bank Credit Facility | |||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 0.25% | ||||||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | ||||||||||||||||||
Minimum | QVC | Amendment No. 3 QVC Bank Credit Facility | |||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||||||||||||||
Maximum | HSNi | Amendment No. 1 HSNi Bank Credit Facility | |||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 0.75% | ||||||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ||||||||||||||||||
Maximum | QVC | Amendment No. 3 QVC Bank Credit Facility | |||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||||||||||
Maximum | QVC | Portion of Credit Facility Available to QVC and zulily | |||||||||||||||||||
Maximum Borrowing Capacity | $ 50,000,000 | ||||||||||||||||||
QVC Group Common Stock | |||||||||||||||||||
Loss on extinguishment of debt | 1,000,000 | $ (21,000,000) | |||||||||||||||||
Debt Instrument Carrying Amount | 6,734,000,000 | 6,734,000,000 | |||||||||||||||||
Debt, Current | $ 17,000,000 | $ 17,000,000 | 14,000,000 | ||||||||||||||||
QVC Group Common Stock | 8.5% Senior Debentures Due 2029 | |||||||||||||||||||
Interest rate (as a percent) | 8.50% | 8.50% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 287,000,000 | $ 287,000,000 | |||||||||||||||||
QVC Group Common Stock | 8.25% Senior Debentures Due 2030 | |||||||||||||||||||
Interest rate (as a percent) | 8.25% | 8.25% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 504,000,000 | $ 504,000,000 | |||||||||||||||||
QVC Group Common Stock | QVC 3.125% Senior Secured Notes Due 2019 [Member] | |||||||||||||||||||
Debt Instrument Carrying Amount | $ 400,000,000 | $ 400,000,000 | |||||||||||||||||
QVC Group Common Stock | QVC 5.125% Senior Secured Notes Due 2022 [Member] | |||||||||||||||||||
Interest rate (as a percent) | 5.125% | 5.125% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 500,000,000 | $ 500,000,000 | |||||||||||||||||
QVC Group Common Stock | QVC 4.375% Senior Secured Notes due 2023 | |||||||||||||||||||
Interest rate (as a percent) | 4.375% | 4.375% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 750,000,000 | $ 750,000,000 | |||||||||||||||||
QVC Group Common Stock | QVC 4.85% Senior Secured Notes Due 2024 [Member] | |||||||||||||||||||
Interest rate (as a percent) | 4.85% | 4.85% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 600,000,000 | $ 600,000,000 | |||||||||||||||||
QVC Group Common Stock | QVC 4.45% Senior Secured Notes Due 2025 [Member] | |||||||||||||||||||
Interest rate (as a percent) | 4.45% | 4.45% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 600,000,000 | $ 600,000,000 | |||||||||||||||||
QVC Group Common Stock | QVC 5.45% Senior Secured Notes Due 2034 [Member] | |||||||||||||||||||
Interest rate (as a percent) | 5.45% | 5.45% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 400,000,000 | $ 400,000,000 | |||||||||||||||||
QVC Group Common Stock | QVC 5.95% Senior Secured Notes due 2043 | |||||||||||||||||||
Interest rate (as a percent) | 5.95% | 5.95% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 300,000,000 | $ 300,000,000 | |||||||||||||||||
QVC Group Common Stock | Amendment No. 2 QVC Bank Credit Facility | |||||||||||||||||||
Debt Instrument Carrying Amount | 1,763,000,000 | 1,763,000,000 | |||||||||||||||||
QVC Group Common Stock | HSNi Bank Credit Facility | |||||||||||||||||||
Debt Instrument Carrying Amount | $ 460,000,000 | $ 460,000,000 | |||||||||||||||||
QVC Group Common Stock | Amendment No. 1 HSNi Bank Credit Facility | |||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.07% | 3.07% | |||||||||||||||||
Remaining borrowing capacity | $ 533,000,000 | $ 533,000,000 | |||||||||||||||||
Debt Instrument Carrying Amount | 460,000,000 | 460,000,000 | |||||||||||||||||
Leverage ratio | 3.50 | ||||||||||||||||||
Letters of Credit Outstanding, Amount | 7,000,000 | 7,000,000 | |||||||||||||||||
Liberty Ventures common stock | |||||||||||||||||||
Loss on extinguishment of debt | (7,000,000) | ||||||||||||||||||
Debt Instrument Carrying Amount | 1,947,000,000 | 1,947,000,000 | |||||||||||||||||
Debt, Current | $ 979,000,000 | $ 979,000,000 | $ 862,000,000 | ||||||||||||||||
Liberty Ventures common stock | 4% Exchangeable Senior Debentures Due 2029 | |||||||||||||||||||
Interest rate (as a percent) | 4.00% | 4.00% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 434,000,000 | $ 434,000,000 | |||||||||||||||||
Liberty Ventures common stock | 3.75% Exchangeable Senior Debentures Due 2030 | |||||||||||||||||||
Interest rate (as a percent) | 3.75% | 3.75% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 435,000,000 | $ 435,000,000 | |||||||||||||||||
Liberty Ventures common stock | 3.5% Exchangeable Senior Debentures Due 2031 | |||||||||||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | |||||||||||||||||
Debt Instrument Carrying Amount | $ 328,000,000 | $ 328,000,000 | |||||||||||||||||
Liberty Ventures common stock | 0.75% Exchangeable Senior Debentures due 2043 | |||||||||||||||||||
Interest rate (as a percent) | 0.75% | 0.75% | |||||||||||||||||
Liberty Ventures common stock | 1.75% Exchangeable Senior Debentures due 2046 | |||||||||||||||||||
Interest rate (as a percent) | 1.75% | 1.75% | |||||||||||||||||
Liberty Ventures common stock | Ventures Margin Loan | |||||||||||||||||||
Maximum Borrowing Capacity | $ 1,000,000,000 |
Long-Term Debt (Debt Securities
Long-Term Debt (Debt Securities That Are Not Reported At Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2,016 | $ 24 | |
2,017 | 425 | |
2,018 | 23 | |
2,019 | 1,786 | |
2,020 | 980 | |
Long-term Debt, Fair Value | 868 | $ 805 |
Senior Debentures | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Fair Value | 866 | 853 |
QVC Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Fair Value | $ 3,636 | $ 3,496 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Expense (Benefit) [Abstract] | |||||
Current Federal | $ (61) | $ (40) | $ (188) | ||
Current State and Local | (23) | (12) | (26) | ||
Current Foreign | (88) | (73) | (74) | ||
Current Income Tax Expense (Benefit) | (172) | (125) | (288) | ||
Deferred Federal | 1,266 | (444) | 74 | ||
Deferred State and Local | (130) | (33) | 21 | ||
Deferred Foreign | 4 | 8 | |||
Deferred Income Tax Expense (Benefit) | 1,136 | (473) | 103 | ||
Income tax benefit (expense) | 964 | (598) | (185) | ||
Domestic | 1,314 | 1,684 | 674 | ||
Foreign | 209 | 168 | 142 | ||
Earnings (loss) before income taxes | $ 1,523 | 1,852 | 816 | ||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||
Transition tax payment period | 8 years | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | |||
Computed expected tax benefit (expense) | $ (533) | (649) | (286) | ||
State and local income taxes, net of federal income taxes | (26) | (26) | (15) | ||
Foreign taxes, net of foreign tax credits | (32) | (9) | (5) | ||
Dividends received deductions | 10 | 9 | 51 | ||
Alternative energy tax credits | 85 | 94 | 61 | ||
Change in valuation allowance affecting tax expense | (101) | (16) | 6 | ||
Change in tax rate - U.S. tax reform | 1,485 | ||||
Impact of change in state rate on deferred taxes | (84) | 1 | (7) | ||
Consolidation of equity investment | 138 | ||||
Other, net | 22 | (2) | 10 | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | |||||
Net operating and capital loss carryforwards | $ 160 | 160 | 123 | ||
Foreign tax credit carryforwards | 98 | 98 | 134 | ||
Accrued stock compensation | 51 | 51 | 56 | ||
Other accrued liabilities | 19 | 19 | 118 | ||
Other future deductible amounts | 190 | 190 | 144 | ||
Deferred tax assets | 518 | 518 | 575 | ||
Valuation allowance | (165) | (165) | (64) | ||
Net deferred tax assets | 353 | 353 | 511 | ||
Investments | 903 | 903 | 1,057 | ||
Intangible assets | 1,188 | 1,188 | 1,540 | ||
Discount on exchangeable debentures | 981 | 981 | 1,404 | ||
Deferred gain on debt retirements | 43 | 43 | 129 | ||
Other | 41 | 41 | 17 | ||
Deferred tax liabilities | 3,156 | 3,156 | 4,147 | ||
Deferred tax liabilities | 2,803 | 2,803 | 3,636 | ||
Valuation Allowance, Deferred Tax Asset, Change in Amount | (101) | ||||
Federal business tax credits | 31 | ||||
Operating Loss Carryforwards, Valuation Allowance | 67 | 67 | |||
Income Tax Uncertainties [Abstract] | |||||
Balance at beginning of year | $ 71 | 72 | 104 | 136 | |
Additions based on tax positions related to the current year | 10 | 16 | 14 | ||
Additions for tax positions of prior years | 4 | ||||
Reductions for tax positions of prior years | (26) | (12) | |||
Lapse of statute and settlements | (15) | (22) | (34) | ||
Balance at end of year | 71 | 71 | 72 | 104 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 60 | 60 | 50 | 47 | |
Reasonably possible change in unrecognized tax benefit within 12 months | 3 | 3 | |||
Accrued interest and penalties related to uncertain tax positions | $ 17 | $ 17 | $ 17 | $ 17 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ in Millions | Dec. 29, 2017shares | Oct. 02, 2015shares | Dec. 31, 2017USD ($)Voteshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Nov. 04, 2016 | Jun. 02, 2015shares |
Class of Stock [Line Items] | |||||||
Preferred Stock, Shares Issued | 0 | 0 | |||||
Capital stock designated as common stock | 8,965,000,000 | ||||||
Capital stock authorized for issuance | 9,015,000,000 | ||||||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Share received in exchange | 1 | ||||||
Common Class A | Liberty Expedia Holdings | |||||||
Class of Stock [Line Items] | |||||||
Spilt-Off redemption ratio | 0.4 | ||||||
Common Class A | QVC Group Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Number of votes | Vote | 1 | ||||||
Common stock, shares authorized | 4,000,000,000 | 4,000,000,000 | |||||
Common Stock, Shares, Issued | 449,335,940 | 429,005,932 | |||||
Common Stock, Shares, Outstanding | 449,335,940 | 429,005,932 | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 32,400,000 | ||||||
Stock Repurchased and Retired During Period, Shares | 34,765,751 | 34,836,196 | 28,134,498 | ||||
Stock Repurchased and Retired During Period, Value | $ | $ 766 | $ 799 | $ 785 | ||||
Common Class A | Liberty Ventures common stock | |||||||
Class of Stock [Line Items] | |||||||
Number of votes | Vote | 1 | ||||||
Common stock, shares authorized | 400,000,000 | 400,000,000 | 400,000,000 | ||||
Common Stock, Shares, Issued | 81,686,659 | 81,150,711 | |||||
Common Stock, Shares, Outstanding | 81,686,659 | 81,150,711 | |||||
Spilt-Off redemption ratio | 0.4 | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,700,000 | ||||||
Common Class B | Liberty Expedia Holdings | |||||||
Class of Stock [Line Items] | |||||||
Spilt-Off redemption ratio | 0.4 | ||||||
Common Class B | QVC Group Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Number of votes | Vote | 10 | ||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | |||||
Common Stock, Shares, Issued | 29,203,895 | 29,358,638 | |||||
Common Stock, Shares, Outstanding | 29,203,895 | 29,358,638 | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,600,000 | ||||||
Common Class B | Liberty Ventures common stock | |||||||
Class of Stock [Line Items] | |||||||
Number of votes | Vote | 10 | ||||||
Common stock, shares authorized | 15,000,000 | 15,000,000 | 15,000,000 | ||||
Common Stock, Shares, Issued | 4,455,311 | 4,271,958 | |||||
Common Stock, Shares, Outstanding | 4,455,311 | 4,271,958 | |||||
Spilt-Off redemption ratio | 0.4 | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,100,000 | ||||||
Common Class C | QVC Group Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized | 4,000,000,000 | ||||||
Common Stock, Shares, Issued | 0 | ||||||
Common Stock, Shares, Outstanding | 0 | ||||||
Common Class C | Liberty Ventures common stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized | 400,000,000 | 400,000,000 | |||||
Common Stock, Shares, Issued | 0 | ||||||
Common Stock, Shares, Outstanding | 0 | ||||||
zulily | Common Class A | QVC Group Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock Issued During Period Shares Acquisitions] | 38,500,000 | ||||||
HSNi | Common Class A | QVC Group Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock Issued During Period Shares Acquisitions] | 53,600,000 |
Transactions with Officers an65
Transactions with Officers and Directors (Details) - Chief Executive Officer | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Employment agreement term | 5 years |
Officers' Compensation | $ 960,750 |
Annual base salary increase | 5.00% |
Annual target cash bonus | 250.00% |
Termination Benefits Scenario Without Cause or Good Reason [Member] | |
Severance payment multiple | 1.5 |
Pro rated severance payment | $ 11,750,000 |
Fixed severance payments | $ 17,500,000 |
Additional vesting added upon termination | 18 months |
Termination Benefits Scenario With No Good Reason [Member] | |
Fixed severance payments | $ 11,750,000 |
Termination Benefits Scenario For Death Or Disability [Member] | |
Severance payment multiple | 1.5 |
Pro rated severance payment | $ 11,750,000 |
Fixed severance payments | 17,500,000 |
Performance Options And Performance Based Restricted Stock Units [Member] | Common Class B | |
Target Allocation [Abstract] | |
2,015 | 16,000,000 |
2,016 | 17,000,000 |
2,017 | 18,000,000 |
2,018 | 19,000,000 |
2,019 | $ 20,000,000 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of shares reserved for issuance | 39,900 | ||
Weighted average period of recognition related to unvested equity awards (in years) | 1 year 9 months 18 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||
Total unrecognized compensation cost related to unvested Liberty equity awards | $ 116 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 145 | $ 44 | $ 115 |
Share-based Compensation Expense | 123 | 97 | 127 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 23 | $ 26 | $ 16 |
Common Class A | |||
Options granted | 4,116 | ||
Common Class B | |||
Options granted | 154 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years | 2 years | 2 years |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 8 months 12 days | 6 years 8 months 12 days | 6 years 8 months 12 days |
QVC Group Common Stock | Common Class A | Restricted Stock | |||
Nonvested awards, number | 5,200 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 24 | ||
QVC Group Common Stock | QVC Employees | Common Class A | |||
Options granted | 3,115 | 2,860 | 2,002 |
Weighted average grant-date fair value of options | $ 7.86 | $ 7.84 | $ 11.87 |
Award vesting period | 4 years | ||
QVC Group Common Stock | zulily Employees | Common Class A | |||
Options granted | 483 | 433 | 264 |
Weighted average grant-date fair value of options | $ 7.86 | $ 7.57 | $ 9.84 |
Award vesting period | 4 years | ||
QVC Group Common Stock | Liberty Employees | Common Class A | |||
Options granted | 518 | 421 | 2,459 |
Weighted average grant-date fair value of options | $ 7.81 | $ 8.02 | $ 11.63 |
QVC Group Common Stock | QVC CEO | Common Class A | |||
Options granted | 1,680 | ||
Weighted average grant-date fair value of options | $ 10.40 | ||
QVC Group Common Stock | QVC CEO | Common Class A | Awards subject to Fifty Percent Vesting | |||
Award Vesting Period Percentage | 50.00% | ||
QVC Group Common Stock | Chief Executive Officer | Common Class B | |||
Options granted | 154 | 730 | 132 |
Weighted average grant-date fair value of options | $ 7.92 | $ 7.47 | $ 10.10 |
QVC Group Common Stock | Liberty directors | Common Class A | |||
Award vesting period | 1 year | ||
QVC Group Common Stock | Minimum | Liberty Employees | Common Class A | |||
Award vesting period | 3 years | ||
QVC Group Common Stock | Maximum | Liberty Employees | Common Class A | |||
Award vesting period | 5 years | ||
Liberty Ventures common stock | Common Class A | |||
Options granted | 188 | ||
Liberty Ventures common stock | Common Class A | Restricted Stock | |||
Nonvested awards, number | 252 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 50.46 | ||
Liberty Ventures common stock | Common Class B | |||
Options granted | 269 | ||
Liberty Ventures common stock | Liberty Employees | Common Class A | |||
Options granted | 188 | 114 | 683 |
Weighted average grant-date fair value of options | $ 16.52 | $ 12.25 | $ 18.10 |
Liberty Ventures common stock | Chief Executive Officer | Common Class B | |||
Options granted | 269 | 209 | 135 |
Weighted average grant-date fair value of options | $ 15.41 | $ 12.48 | $ 16.94 |
Liberty Ventures common stock | Liberty directors | Common Class A | |||
Award vesting period | 1 year | ||
Liberty Ventures common stock | Minimum | Liberty Employees | Common Class A | |||
Award vesting period | 3 years | ||
Liberty Ventures common stock | Maximum | Liberty Employees | Common Class A | |||
Award vesting period | 5 years | ||
CommerceHub | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $ 90 | ||
Option exchange | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 104 | ||
Unamortized value of unvested eligible options | $ 14 | ||
Option exchange | QVC Group Common Stock | Common Class A | |||
Options granted | 5,900 | ||
Weighted average grant-date fair value of options | $ 3.49 | ||
Option exchange | Liberty Ventures common stock | Common Class A | |||
Options granted | 946 | ||
Weighted average grant-date fair value of options | $ 8.53 | ||
Option exchange | Liberty Ventures common stock | Common Class B | |||
Options granted | 1,100 | ||
Weighted average grant-date fair value of options | $ 6.94 | ||
2012 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | ||
Award vesting period | 4 years | ||
2012 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Award vesting period | 5 years | ||
Unvested New Options member | |||
Share-based Compensation Expense | $ 6 | ||
New vested option member | |||
Share-based Compensation Expense | $ 30 | ||
Chief Executive Officer | QVC Group Common Stock | Common Class B | Restricted Stock | |||
Options granted | 115 | 53 | 182 |
Weighted average grant-date fair value of options | $ 19.90 | $ 25.11 | $ 29.41 |
Award vesting period | 1 year | ||
Chief Executive Officer | Liberty Ventures common stock | Common Class B | Restricted Stock | |||
Options granted | 16 | 13 | |
Weighted average grant-date fair value of options | $ 38.79 | $ 42.33 | |
Award vesting period | 1 year |
Stock-Based Compensations (Gran
Stock-Based Compensations (Grants) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Common Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding options | 29,585 | |||
Options granted | 4,116 | |||
Options exercised | (3,611) | |||
Options forfeited/cancelled | (1,364) | |||
Outstanding options | 32,361 | 32,361 | 29,585 | |
Exercisable options | 20,286 | 20,286 | ||
Outstanding WAEP | $ 23.48 | $ 23.48 | $ 20.80 | |
WAEP granted | 23.82 | |||
WAEP exercised | 16.34 | |||
WAEP forfeited/cancelled | 27.23 | |||
Exercisable WAEP | $ 22.66 | $ 22.66 | ||
Weighted average remaining life - options outstanding | 4 years | |||
Weighted average remaining life - options exercisable | 3 years 2 months 12 days | |||
Aggregate intrinsic value of options outstanding | $ 86 | $ 86 | ||
Aggregate intrinsic value of options exercisable | $ 71 | $ 71 | ||
HSNi Acquisition, Options Granted | 3,635 | |||
HSNi Acquisition, WEAP | $ 26.22 | |||
Option Exchange, Exercised | (5,931) | |||
Option Exchange, Excercised WEAP | $ 17.76 | |||
Option Exchange, Granted | 5,931 | |||
Option Exchange, Granted WEAP | $ 25.74 | |||
Common Class B | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding options | 1,489 | |||
Options granted | 154 | |||
Outstanding options | 1,643 | 1,643 | 1,489 | |
Exercisable options | 997 | 997 | ||
Outstanding WAEP | $ 27.16 | $ 27.16 | $ 27.50 | |
WAEP granted | 23.87 | |||
Exercisable WAEP | $ 25.40 | $ 25.40 | ||
Weighted average remaining life - options outstanding | 4 years 9 months 18 days | |||
Weighted average remaining life - options exercisable | 4 years 3 months 18 days | |||
QVC Group Common Stock | ||||
Volatility Rate, Minimum | 26.90% | 27.40% | 27.40% | |
Volatility Rate, Maximum | 32.70% | 27.40% | 39.70% | |
Liberty Ventures common stock | ||||
Volatility Rate, Minimum | 25.90% | 30.60% | 30.60% | |
Volatility Rate, Maximum | 28.90% | 30.60% | 42.40% | |
Liberty Ventures common stock | Common Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding options | 1,974 | |||
Options granted | 188 | |||
Options exercised | (451) | |||
Options forfeited/cancelled | (12) | |||
Outstanding options | 1,670 | 1,670 | 1,974 | |
Exercisable options | 1,273 | 1,273 | ||
Outstanding WAEP | $ 47.12 | $ 47.12 | $ 22.18 | |
WAEP granted | 55.42 | |||
WAEP exercised | 16.69 | |||
WAEP forfeited/cancelled | 38.50 | |||
Exercisable WAEP | $ 47.45 | $ 47.45 | ||
Weighted average remaining life - options outstanding | 2 years 7 months 6 days | |||
Weighted average remaining life - options exercisable | 2 years | |||
Aggregate intrinsic value of options outstanding | $ 14 | $ 14 | ||
Aggregate intrinsic value of options exercisable | $ 10 | $ 10 | ||
Option Exchange, Exercised | (975) | |||
Option Exchange, Excercised WEAP | $ 20.99 | |||
Option Exchange, Granted | 946 | |||
Option Exchange, Granted WEAP | $ 55.96 | |||
Liberty Ventures common stock | Common Class B | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding options | 987 | |||
Options granted | 269 | |||
Outstanding options | 1,080 | 1,080 | 987 | |
Exercisable options | 443 | 443 | ||
Outstanding WAEP | $ 56.38 | $ 56.38 | $ 35.02 | |
WAEP granted | 52.39 | |||
Exercisable WAEP | $ 56.38 | $ 56.38 | ||
Weighted average remaining life - options outstanding | 4 years 8 months 12 days | |||
Weighted average remaining life - options exercisable | 2 years | |||
Option Exchange, Exercised | (1,256) | |||
Option Exchange, Excercised WEAP | $ 38.74 | |||
Option Exchange, Granted | 1,080 | |||
Option Exchange, Granted WEAP | $ 56.38 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |||
Defined Contribution Plan, Cost | $ 20 | $ 25 | $ 27 |
Other Comprehensive Earnings 69
Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Noncontrolling Interest [Abstract] | |||
Foreign currency translation adjustments, Before-tax amount | $ 155 | $ (97) | $ (118) |
Foreign currency translation adjustments, Tax (expense) benefit | (21) | 13 | 17 |
Foreign currency translation adjustments, Net-of-tax amount | 134 | (84) | (101) |
Share of other comprehensive earnings (loss) of equity affiliates, Before-tax amount | 5 | (8) | (6) |
Share of other comprehensive earnings (loss) of equity affiliates, Tax (expense) benefit | (2) | 3 | 2 |
Share of other comprehensive earnings (loss) of equity affiliates, Net-of-tax amount | 3 | (5) | (4) |
Other comprehensive earnings (loss) from discontinued operations, Before-tax amount | (3) | (27) | |
Other comprehensive earnings (loss) from discontinued operations, Tax (expense) benefit | 1 | 10 | |
Other comprehensive earnings (loss) from discontinued operations, Net-of-tax amount | (2) | (17) | |
Other comprehensive earnings (loss), other, before-tax amount | 10 | ||
Other comprehensive earnings (loss), other, tax (expense) benefit | (4) | ||
Other comprehensive earnings (loss), other, net-of-tax | 6 | ||
Other comprehensive earnings (loss), Before-tax amount | 160 | (98) | (151) |
Other Comprehensive earnings (loss), Tax (expense) benefit | (23) | 13 | 29 |
Other comprehensive earnings (loss), Net-of-tax amount | 137 | (85) | (122) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at | (266) | ||
Distribution of Liberty Expedia Holdings | 1,343 | (458) | |
Balance at | (133) | (266) | |
Foreign Currency Translation Adjustments | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders | 130 | (85) | (100) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at | (260) | (175) | (75) |
Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders | 130 | (85) | (100) |
Balance at | (130) | (260) | (175) |
Share of AOCI of Equity Affiliates | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders | 3 | (1) | (21) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at | (6) | (40) | (19) |
Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders | 3 | (1) | (21) |
Distribution of Liberty Expedia Holdings | 35 | ||
Balance at | (3) | (6) | (40) |
Accumulated Other Comprehensive Earnings | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders | 133 | (86) | (121) |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Noncontrolling Interest [Abstract] | |||
Other comprehensive earnings (loss), Net-of-tax amount | 133 | (86) | (121) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at | (266) | (215) | (94) |
Other comprehensive earnings (loss) attributable to Liberty Interactive Corporation stockholders | 133 | (86) | (121) |
Distribution of Liberty Expedia Holdings | 35 | ||
Balance at | $ (133) | $ (266) | $ (215) |
Commitments And Contingencies (
Commitments And Contingencies (Details) ft² in Millions | Jul. 02, 2015USD ($)ft²item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Long-term Purchase Commitment [Line Items] | ||||
Operating Leases, Rent Expense, Net | $ 45,000,000 | $ 46,000,000 | $ 39,000,000 | |
2,019 | 78,000,000 | |||
2,020 | 70,000,000 | |||
2,020 | 58,000,000 | |||
2,021 | 51,000,000 | |||
2,022 | 42,000,000 | |||
Thereafter | 201,000,000 | |||
QVC | West Coast Distribution Center Lease | ||||
Long-term Purchase Commitment [Line Items] | ||||
Area of leased building (in square feet) | ft² | 1 | |||
Lessee, Operating Lease, Term of Contract | 15 years | |||
Operating Leases, Rent Expense | $ 6,000,000 | |||
Operating Lease, Rent Expense In Final Year Of Initial Term | $ 8,000,000 | |||
Maximum number of terms eligible for extension | item | 2 | |||
Lessee, Operating Lease, Renewal Term | 10 years | |||
Initial Payment to Purchase Land | $ 10,000,000 | |||
Subsequent Annual Payments to Purchase Land | $ 12,000,000 | |||
Term of Annual Payments for Land Purchase | 13 years | |||
Capital Lease Obligations Incurred | $ 0 | $ 89,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Building Useful Life (Details) | Aug. 29, 2016 |
Building | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Information About Liberty's O72
Information About Liberty's Operating Segments (Performance Measures By Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total revenues | $ 3,344 | $ 2,381 | $ 2,352 | $ 2,327 | $ 3,162 | $ 2,412 | $ 2,563 | $ 2,510 | $ 10,404 | $ 10,647 | $ 9,989 |
Adjusted OIBDA | 1,926 | 1,939 | 1,946 | ||||||||
QVC Group Common Stock | |||||||||||
Total revenues | 10,381 | 10,219 | 9,169 | ||||||||
Adjusted OIBDA | 1,953 | 1,936 | 1,887 | ||||||||
QVC Group Common Stock | QVC | |||||||||||
Total revenues | 8,771 | 8,682 | 8,743 | ||||||||
Adjusted OIBDA | 1,897 | 1,840 | 1,894 | ||||||||
QVC Group Common Stock | zulily | |||||||||||
Total revenues | 1,613 | 1,547 | 426 | ||||||||
Adjusted OIBDA | 91 | 112 | 21 | ||||||||
QVC Group Common Stock | Corporate and Other | |||||||||||
Adjusted OIBDA | (35) | (16) | (28) | ||||||||
QVC Group Common Stock | Intersegment Eliminations | |||||||||||
Total revenues | (3) | (10) | |||||||||
Liberty Ventures common stock | |||||||||||
Total revenues | 23 | 428 | 820 | ||||||||
Adjusted OIBDA | (27) | 3 | 59 | ||||||||
Liberty Ventures common stock | Corporate and Other | |||||||||||
Total revenues | 23 | 428 | 820 | ||||||||
Adjusted OIBDA | (27) | 3 | 59 | ||||||||
United States | |||||||||||
Total revenues | 7,684 | 7,979 | 7,412 | ||||||||
Japan | |||||||||||
Total revenues | 934 | 900 | 811 | ||||||||
Other Foreign Countries | |||||||||||
Total revenues | 887 | 902 | 916 | ||||||||
Germany | |||||||||||
Total revenues | $ 899 | $ 866 | $ 850 |
Information About Liberty's O73
Information About Liberty's Operating Segments (Other Information By Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total assets | $ 24,122 | $ 20,355 | |
Investments in affiliates, accounted for using the equity method | 309 | 581 | |
Investment in Liberty Broadband | 3,635 | 3,161 | |
Investments in and Advances to Affiliates, at Fair Value | 3,635 | 3,161 | |
Capital expenditures | 204 | 233 | $ 258 |
Long-Lived Assets | 1,341 | 1,131 | |
United States | |||
Long-Lived Assets | 895 | 694 | |
Japan | |||
Long-Lived Assets | 143 | 145 | |
Germany | |||
Long-Lived Assets | 164 | 154 | |
Other Foreign Countries | |||
Long-Lived Assets | 139 | 138 | |
QVC Group Common Stock | |||
Total assets | 17,237 | 14,357 | |
Investments in affiliates, accounted for using the equity method | 40 | 224 | |
Capital expenditures | 201 | 206 | 218 |
QVC Group Common Stock | QVC | |||
Total assets | 11,550 | 11,545 | |
Investments in affiliates, accounted for using the equity method | 40 | 40 | |
Capital expenditures | 152 | 179 | |
QVC Group Common Stock | HSN | |||
Total assets | 2,798 | ||
QVC Group Common Stock | zulily | |||
Total assets | 2,323 | 2,461 | |
Capital expenditures | 49 | 27 | |
QVC Group Common Stock | Corporate and Other | |||
Total assets | 566 | 351 | |
Investments in affiliates, accounted for using the equity method | 184 | ||
Liberty Ventures common stock | |||
Total assets | 6,885 | 5,998 | |
Investments in affiliates, accounted for using the equity method | 269 | 357 | |
Investment in Liberty Broadband | 3,635 | 3,161 | |
Investments in and Advances to Affiliates, at Fair Value | 3,635 | 3,161 | |
Capital expenditures | 3 | 27 | $ 40 |
Liberty Ventures common stock | Corporate and Other | |||
Total assets | 6,885 | 5,998 | |
Investments in affiliates, accounted for using the equity method | 269 | 357 | |
Investment in Liberty Broadband | 3,635 | 3,161 | |
Capital expenditures | $ 3 | $ 27 |
Information About Liberty's O74
Information About Liberty's Operating Segments (Reconciliation Of Segment Adjusted OIBDA To Earnings (Loss) From Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Information About Liberty's Operating Segments | |||||||||||
Consolidated segment Adjusted OIBDA | $ 1,926 | $ 1,939 | $ 1,946 | ||||||||
Stock-based compensation | (123) | (97) | (127) | ||||||||
Depreciation and amortization | (725) | (874) | (703) | ||||||||
Restructuring Charges | 35 | ||||||||||
Operating Income (Loss) | $ 368 | $ 208 | $ 254 | $ 213 | $ 372 | $ 157 | $ 250 | $ 189 | 1,043 | 968 | 1,116 |
Interest expense | (355) | (363) | (360) | ||||||||
Share of earnings (losses) of affiliates, net | (200) | (68) | (178) | ||||||||
Realized and unrealized gains (losses) on financial instruments, net | 618 | 1,175 | 114 | ||||||||
Gains (losses) on transactions, net | 410 | 9 | 110 | ||||||||
Other, net | 7 | 131 | 14 | ||||||||
Earnings (loss) before income taxes | $ 1,523 | $ 1,852 | $ 816 |
Quarterly Financial Informati75
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | $ 3,344 | $ 2,381 | $ 2,352 | $ 2,327 | $ 3,162 | $ 2,412 | $ 2,563 | $ 2,510 | $ 10,404 | $ 10,647 | $ 9,989 |
Operating income | 368 | 208 | 254 | 213 | 372 | 157 | 250 | 189 | 1,043 | 968 | 1,116 |
Earnings from continuing operations | 1,476 | 308 | 184 | 519 | 324 | 451 | 387 | 92 | 2,487 | 1,254 | 631 |
Net earnings (loss) attributable to shareholders | 2,441 | 1,235 | 869 | ||||||||
QVC Group Common Stock | |||||||||||
Revenue | 10,381 | 10,219 | 9,169 | ||||||||
Operating income | 1,100 | 1,011 | 1,170 | ||||||||
Earnings from continuing operations | 511 | 674 | |||||||||
Net earnings (loss) attributable to shareholders | $ 887 | $ 119 | $ 111 | $ 91 | $ 188 | $ 61 | $ 130 | $ 94 | $ 1,208 | $ 473 | $ 640 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 2.07 | $ 0.27 | $ 0.25 | $ 0.20 | $ 0.41 | $ 0.13 | $ 0.27 | $ 0.19 | $ 2.71 | $ 0.99 | $ 1.35 |
Income (Loss) from Continuing Operations, Per Diluted Share | 2.05 | 0.26 | 0.24 | 0.20 | 0.40 | 0.13 | 0.27 | 0.19 | 2.70 | 0.98 | 1.33 |
Earnings Per Share, Basic | 2.07 | 0.27 | 0.25 | 0.20 | 0.41 | 0.13 | 0.27 | 0.19 | 2.71 | 0.99 | 1.35 |
Earnings Per Share, Diluted | $ 2.05 | $ 0.26 | $ 0.24 | $ 0.20 | $ 0.40 | $ 0.13 | $ 0.27 | $ 0.19 | $ 2.70 | $ 0.98 | $ 1.33 |
Liberty Ventures common stock | |||||||||||
Revenue | $ 23 | $ 428 | $ 820 | ||||||||
Operating income | (57) | (43) | (54) | ||||||||
Earnings from continuing operations | 743 | (43) | |||||||||
Net earnings (loss) attributable to shareholders | $ 576 | $ 177 | $ 64 | $ 416 | $ 131 | $ 408 | $ 249 | $ (26) | $ 1,233 | $ 762 | $ 229 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 6.70 | $ 2.06 | $ 0.75 | $ 4.89 | $ 1.15 | $ 2.68 | $ 1.73 | $ (0.07) | $ 14.34 | $ 5.54 | $ (0.36) |
Income (Loss) from Continuing Operations, Per Diluted Share | 6.70 | 2.03 | 0.74 | 4.84 | 1.15 | 2.64 | 1.72 | (0.07) | 14.17 | 5.49 | (0.36) |
Earnings Per Share, Basic | 6.70 | 2.06 | 0.75 | 4.89 | 1.21 | 2.87 | 1.75 | (0.18) | 14.34 | 5.69 | 1.61 |
Earnings Per Share, Diluted | $ 6.70 | $ 2.03 | $ 0.74 | $ 4.84 | $ 1.21 | $ 2.83 | $ 1.74 | $ (0.18) | $ 14.17 | $ 5.64 | $ 1.60 |
Financial Information for Tra76
Financial Information for Tracking Stock Groups - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 903 | $ 825 | $ 2,449 | $ 2,306 |
Trade and other receivables, net | 1,726 | 1,308 | ||
Inventory, net | 1,411 | 968 | ||
Other current assets | 125 | 68 | ||
Total current assets | 4,165 | 3,169 | ||
Investments in available-for-sale securities and other cost investments | 2,363 | 1,922 | ||
Investments in affiliates, accounted for using the equity method | 309 | 581 | ||
Investments in and Advances to Affiliates, at Fair Value | 3,635 | 3,161 | ||
Property and equipment, net | 1,341 | 1,131 | ||
Intangible assets not subject to amortization | 11,011 | 9,354 | ||
Intangible assets subject to amortization, net | 1,248 | 1,005 | ||
Other assets | 50 | 32 | ||
Total assets | 24,122 | 20,355 | ||
Accounts payable | 1,151 | 790 | ||
Accrued liabilities | 1,125 | 706 | ||
Current portion of debt | 996 | 876 | ||
Other current liabilities | 169 | 162 | ||
Total current liabilities | 3,441 | 2,534 | ||
Long-term debt | 7,553 | 7,166 | ||
Deferred income tax liabilities | 2,803 | 3,636 | ||
Other liabilities | 242 | 158 | ||
Total liabilities | 14,039 | 13,494 | ||
Equity/Attributed net assets (liabilities) | 9,984 | 6,772 | ||
Noncontrolling interests in equity of subsidiaries | 99 | 89 | ||
Total liabilities and equity | 24,122 | 20,355 | ||
QVC Group Common Stock | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 330 | 338 | 426 | 422 |
Trade and other receivables, net | 1,719 | 1,270 | ||
Inventory, net | 1,411 | 968 | ||
Other current assets | 122 | 66 | ||
Total current assets | 3,582 | 2,642 | ||
Investments in available-for-sale securities and other cost investments | 3 | 4 | ||
Investments in affiliates, accounted for using the equity method | 40 | 224 | ||
Property and equipment, net | 1,340 | 1,131 | ||
Intangible assets not subject to amortization | 10,982 | 9,325 | ||
Intangible assets subject to amortization, net | 1,244 | 1,001 | ||
Other assets | 46 | 30 | ||
Total assets | 17,237 | 14,357 | ||
Intergroup payable receivable | 51 | 113 | ||
Accounts payable | 1,150 | 789 | ||
Accrued liabilities | 1,097 | 684 | ||
Current portion of debt | 17 | 14 | ||
Other current liabilities | 167 | 160 | ||
Total current liabilities | 2,482 | 1,760 | ||
Long-term debt | 6,686 | 6,361 | ||
Deferred income tax liabilities | 994 | 1,116 | ||
Other liabilities | 147 | 161 | ||
Total liabilities | 10,309 | 9,398 | ||
Equity/Attributed net assets (liabilities) | 6,819 | 4,860 | ||
Noncontrolling interests in equity of subsidiaries | 109 | 99 | ||
Total liabilities and equity | 17,237 | 14,357 | ||
Liberty Ventures common stock | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 573 | 487 | $ 2,023 | $ 1,884 |
Trade and other receivables, net | 7 | 38 | ||
Other current assets | 3 | 2 | ||
Total current assets | 583 | 527 | ||
Investments in available-for-sale securities and other cost investments | 2,360 | 1,918 | ||
Investments in affiliates, accounted for using the equity method | 269 | 357 | ||
Investments in and Advances to Affiliates, at Fair Value | 3,635 | 3,161 | ||
Property and equipment, net | 1 | |||
Intangible assets not subject to amortization | 29 | 29 | ||
Intangible assets subject to amortization, net | 4 | 4 | ||
Other assets | 4 | 2 | ||
Total assets | 6,885 | 5,998 | ||
Intergroup payable receivable | (51) | (113) | ||
Accounts payable | 1 | 1 | ||
Accrued liabilities | 28 | 22 | ||
Current portion of debt | 979 | 862 | ||
Other current liabilities | 2 | 2 | ||
Total current liabilities | 959 | 774 | ||
Long-term debt | 867 | 805 | ||
Deferred income tax liabilities | 1,809 | 2,520 | ||
Other liabilities | 95 | (3) | ||
Total liabilities | 3,730 | 4,096 | ||
Equity/Attributed net assets (liabilities) | 3,165 | 1,912 | ||
Noncontrolling interests in equity of subsidiaries | (10) | (10) | ||
Total liabilities and equity | $ 6,885 | $ 5,998 |
Financial Information for Tra77
Financial Information for Tracking Stock Groups - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total revenue, net | $ 10,404 | $ 10,647 | $ 9,989 | ||||||||
Cost of sales (exclusive of depreciation shown) | 6,789 | 6,908 | 6,393 | ||||||||
Operating expenses | 659 | 707 | 699 | ||||||||
Selling, general and administrative, including stock-based compensation | 1,153 | 1,190 | 1,078 | ||||||||
Restructuring Charges | 35 | ||||||||||
Depreciation and amortization | 725 | 874 | 703 | ||||||||
Total operating costs and expenses | 9,361 | 9,679 | 8,873 | ||||||||
Operating income (loss) | $ 368 | $ 208 | $ 254 | $ 213 | $ 372 | $ 157 | $ 250 | $ 189 | 1,043 | 968 | 1,116 |
Interest expense | (355) | (363) | (360) | ||||||||
Share of earnings (loss) of affiliates, net | (200) | (68) | (178) | ||||||||
Realized and unrealized gains (losses) on financial instruments, net | 618 | 1,175 | 114 | ||||||||
Gains (losses) on transactions, net | 410 | 9 | 110 | ||||||||
Other, net | 7 | 131 | 14 | ||||||||
Total other income (expense) | 480 | 884 | (300) | ||||||||
Earnings (loss) before income taxes | 1,523 | 1,852 | 816 | ||||||||
Income tax benefit (expense) | 964 | (598) | (185) | ||||||||
Earnings (loss) from continuing operations | 1,476 | 308 | 184 | 519 | 324 | 451 | 387 | 92 | 2,487 | 1,254 | 631 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 20 | 280 | |||||||||
Net earnings (loss) | 2,487 | 1,274 | 911 | ||||||||
Less net earnings (loss) attributable to noncontrolling interests | 46 | 39 | 42 | ||||||||
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders | 2,441 | 1,235 | 869 | ||||||||
QVC Group Common Stock | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total revenue, net | 10,381 | 10,219 | 9,169 | ||||||||
Cost of sales (exclusive of depreciation shown) | 6,789 | 6,642 | 5,847 | ||||||||
Operating expenses | 648 | 653 | 620 | ||||||||
Selling, general and administrative, including stock-based compensation | 1,088 | 1,063 | 875 | ||||||||
Restructuring Charges | 35 | ||||||||||
Depreciation and amortization | 721 | 850 | 657 | ||||||||
Total operating costs and expenses | 9,281 | 9,208 | 7,999 | ||||||||
Operating income (loss) | 1,100 | 1,011 | 1,170 | ||||||||
Interest expense | (293) | (289) | (283) | ||||||||
Share of earnings (loss) of affiliates, net | 38 | 42 | 55 | ||||||||
Realized and unrealized gains (losses) on financial instruments, net | 2 | 42 | |||||||||
Gains (losses) on transactions, net | 409 | ||||||||||
Other, net | (3) | 42 | (6) | ||||||||
Total other income (expense) | 151 | (203) | (192) | ||||||||
Earnings (loss) before income taxes | 1,251 | 808 | 978 | ||||||||
Income tax benefit (expense) | 3 | (297) | (304) | ||||||||
Earnings (loss) from continuing operations | 511 | 674 | |||||||||
Net earnings (loss) | 1,254 | 511 | 674 | ||||||||
Less net earnings (loss) attributable to noncontrolling interests | 46 | 38 | 34 | ||||||||
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders | 887 | 119 | 111 | 91 | 188 | 61 | 130 | 94 | 1,208 | 473 | 640 |
Liberty Ventures common stock | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total revenue, net | 23 | 428 | 820 | ||||||||
Cost of sales (exclusive of depreciation shown) | 266 | 546 | |||||||||
Operating expenses | 11 | 54 | 79 | ||||||||
Selling, general and administrative, including stock-based compensation | 65 | 127 | 203 | ||||||||
Depreciation and amortization | 4 | 24 | 46 | ||||||||
Total operating costs and expenses | 80 | 471 | 874 | ||||||||
Operating income (loss) | (57) | (43) | (54) | ||||||||
Interest expense | (62) | (74) | (77) | ||||||||
Share of earnings (loss) of affiliates, net | (238) | (110) | (233) | ||||||||
Realized and unrealized gains (losses) on financial instruments, net | 618 | 1,173 | 72 | ||||||||
Gains (losses) on transactions, net | 1 | 9 | 110 | ||||||||
Other, net | 10 | 89 | 20 | ||||||||
Total other income (expense) | 329 | 1,087 | (108) | ||||||||
Earnings (loss) before income taxes | 272 | 1,044 | (162) | ||||||||
Income tax benefit (expense) | 961 | (301) | 119 | ||||||||
Earnings (loss) from continuing operations | 743 | (43) | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 20 | 280 | |||||||||
Net earnings (loss) | 1,233 | 763 | 237 | ||||||||
Less net earnings (loss) attributable to noncontrolling interests | 1 | 8 | |||||||||
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders | $ 576 | $ 177 | $ 64 | $ 416 | $ 131 | $ 408 | $ 249 | $ (26) | $ 1,233 | $ 762 | $ 229 |
Financial Information for Tra78
Financial Information for Tracking Stock Groups - Statement of Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net earnings (loss) | $ 2,487 | $ 1,274 | $ 911 |
Earnings (loss) from discontinued operations | (20) | (280) | |
Depreciation and amortization | 725 | 874 | 703 |
Stock-based compensation | 123 | 97 | 127 |
Cash payments for stock based compensation | (92) | (16) | |
Noncash interest expense | 12 | 5 | |
Share of losses (earnings) of affiliates, net | 200 | 68 | 178 |
Cash receipts from returns on equity investments | 29 | 31 | 32 |
Realized and unrealized gains (losses) on financial instruments, net | (618) | (1,175) | (114) |
(Gains) losses on transactions, net | (410) | (9) | (110) |
(Gains) Losses on extinguishment of debt | 6 | 21 | |
Deferred income tax (benefit) expense | (1,136) | 473 | (103) |
Other noncash charges (credits), net | 10 | (115) | (11) |
Current and other assets | (143) | 136 | (237) |
Payables and other current liabilities | 225 | (117) | (44) |
Net cash provided (used) by operating activities | 1,443 | 1,062 | |
Net cash provided (used) by operating activities | 1,492 | ||
Cash (paid) for acquisitions, net of cash acquired | 22 | (844) | |
Proceeds From Disposition Of Investments | 3 | 353 | 271 |
Investments in and loans to cost and equity investees | (159) | (86) | (120) |
Cash receipts from returns of equity investments | 250 | ||
Capital expended for property and equipment | (204) | (233) | (258) |
Purchases of short-term and other marketable securities | (264) | (1,370) | |
Sales of short term and other marketable securities | 1,174 | 1,359 | |
Investments in equity investees measured at fair value | (2,400) | ||
Other investing activities, net | (53) | (36) | (76) |
Net cash used by investing activities | (788) | ||
Net cash used by investing activities | (391) | (1,492) | |
Borrowings of debt | 2,469 | 3,427 | 4,558 |
Repayments of debt | (2,631) | (4,498) | (3,811) |
Repurchases of Liberty common stock | (765) | (799) | (785) |
Withholding taxes on net share settlements of stock-based compensation | (70) | (16) | (30) |
Distribution from Liberty Expedia Holdings | 299 | ||
Other financing activities, net | (39) | 15 | (54) |
Net cash provided (used) by financing activities | (1,036) | (1,572) | (122) |
Effect of foreign currency exchange rates on cash | 13 | (20) | (3) |
Net cash provided by (used in) operating activities, discontinued operations | 17 | 17 | |
Net cash provided by (used in) investing activities, discontinued operations | (23) | ||
Net Cash Provided by (Used in) Discontinued Operations, Total | 17 | (6) | |
Net increase (decrease) in cash and cash equivalents | 78 | (1,624) | 143 |
Cash and cash equivalents at beginning of period | 825 | 2,449 | 2,306 |
Cash and cash equivalents at end of period | 903 | 825 | 2,449 |
QVC Group Common Stock | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net earnings (loss) | 1,254 | 511 | 674 |
Depreciation and amortization | 721 | 850 | 657 |
Stock-based compensation | 97 | 75 | 60 |
Noncash interest expense | 3 | 6 | |
Share of losses (earnings) of affiliates, net | (38) | (42) | (55) |
Cash receipts from returns on equity investments | 28 | 28 | 22 |
Realized and unrealized gains (losses) on financial instruments, net | (2) | (42) | |
(Gains) losses on transactions, net | (409) | ||
(Gains) Losses on extinguishment of debt | (1) | 21 | |
Deferred income tax (benefit) expense | (421) | (199) | (122) |
Intergroup tax allocation | 266 | 360 | 141 |
Intergroup tax payments | (288) | (301) | (101) |
Other noncash charges (credits), net | 7 | (33) | (14) |
Current and other assets | (177) | 92 | (245) |
Payables and other current liabilities | 182 | (68) | 3 |
Net cash provided (used) by operating activities | 1,005 | ||
Net cash provided (used) by operating activities | 1,222 | 1,273 | |
Cash (paid) for acquisitions, net of cash acquired | 22 | (824) | |
Proceeds From Disposition Of Investments | 2 | ||
Cash receipts from returns of equity investments | 200 | ||
Capital expended for property and equipment | (201) | (206) | (218) |
Purchases of short-term and other marketable securities | (184) | ||
Sales of short term and other marketable securities | 12 | 193 | |
Other investing activities, net | (52) | (44) | (76) |
Net cash used by investing activities | (909) | ||
Net cash used by investing activities | (229) | (238) | |
Borrowings of debt | 2,469 | 1,905 | 3,969 |
Repayments of debt | (2,618) | (2,178) | (3,244) |
Repurchases of Liberty common stock | (765) | (799) | (785) |
Withholding taxes on net share settlements of stock-based compensation | (43) | (15) | (25) |
Other financing activities, net | (57) | (16) | (4) |
Net cash provided (used) by financing activities | (1,014) | (1,103) | (89) |
Effect of foreign currency exchange rates on cash | 13 | (20) | (3) |
Net increase (decrease) in cash and cash equivalents | (8) | (88) | 4 |
Cash and cash equivalents at beginning of period | 338 | 426 | 422 |
Cash and cash equivalents at end of period | 330 | 338 | 426 |
Liberty Ventures common stock | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net earnings (loss) | 1,233 | 763 | 237 |
Earnings (loss) from discontinued operations | (20) | (280) | |
Depreciation and amortization | 4 | 24 | 46 |
Stock-based compensation | 26 | 22 | 67 |
Cash payments for stock based compensation | (92) | (16) | |
Noncash interest expense | 9 | (1) | |
Share of losses (earnings) of affiliates, net | 238 | 110 | 233 |
Cash receipts from returns on equity investments | 1 | 3 | 10 |
Realized and unrealized gains (losses) on financial instruments, net | (618) | (1,173) | (72) |
(Gains) losses on transactions, net | (1) | (9) | (110) |
(Gains) Losses on extinguishment of debt | 7 | ||
Deferred income tax (benefit) expense | (715) | 672 | 19 |
Intergroup tax allocation | (266) | (360) | (141) |
Intergroup tax payments | 288 | 301 | 101 |
Other noncash charges (credits), net | 3 | (82) | 3 |
Current and other assets | 34 | 44 | 8 |
Payables and other current liabilities | 43 | (49) | (47) |
Net cash provided (used) by operating activities | 170 | 57 | |
Net cash provided (used) by operating activities | 270 | ||
Cash (paid) for acquisitions, net of cash acquired | (20) | ||
Proceeds From Disposition Of Investments | 1 | 353 | 271 |
Investments in and loans to cost and equity investees | (159) | (86) | (120) |
Cash receipts from returns of equity investments | 50 | ||
Capital expended for property and equipment | (3) | (27) | (40) |
Purchases of short-term and other marketable securities | (264) | (1,186) | |
Sales of short term and other marketable securities | 1,162 | 1,166 | |
Investments in equity investees measured at fair value | (2,400) | ||
Other investing activities, net | (1) | 8 | |
Net cash used by investing activities | 121 | ||
Net cash used by investing activities | (162) | (1,254) | |
Borrowings of debt | 1,522 | 589 | |
Repayments of debt | (13) | (2,320) | (567) |
Withholding taxes on net share settlements of stock-based compensation | (27) | (1) | (5) |
Distribution from Liberty Expedia Holdings | 299 | ||
Other financing activities, net | 18 | 31 | (50) |
Net cash provided (used) by financing activities | (22) | (469) | (33) |
Net cash provided by (used in) operating activities, discontinued operations | 17 | 17 | |
Net cash provided by (used in) investing activities, discontinued operations | (23) | ||
Net Cash Provided by (Used in) Discontinued Operations, Total | 17 | (6) | |
Net increase (decrease) in cash and cash equivalents | 86 | (1,536) | 139 |
Cash and cash equivalents at beginning of period | 487 | 2,023 | 1,884 |
Cash and cash equivalents at end of period | $ 573 | $ 487 | $ 2,023 |