Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2014 |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' |
Condensed Consolidating Financial Statements | ' |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS |
Overview |
As of September 30, 2014 and December 31, 2013, the senior notes outstanding (see Note 6) have been issued by DCL, a wholly-owned subsidiary of the Company, in transactions registered with the U.S. Securities and Exchange Commission. The Company fully and unconditionally guarantees the senior notes on an unsecured basis. The Company, DCL, and/or Discovery Communications Holding, LLC (“DCH”), a wholly-owned subsidiary of the Company (collectively, the “Issuers”), have an effective Registration Statement on Form S-3 (the "Shelf Registration") and may issue additional debt securities under the Shelf Registration that are fully and unconditionally guaranteed by one or both of the other Issuers. |
Set forth below are condensed consolidating financial statements presenting the financial position, results of operations and comprehensive income, and cash flows of (i) the Company, (ii) DCH, (iii) DCL, (iv) the non-guarantor subsidiaries of DCL on a combined basis, (v) the other non-guarantor subsidiaries of the Company on a combined basis and (vi) reclassifications and eliminations necessary to arrive at the consolidated financial statement balances for the Company. DCL and the non-guarantor subsidiaries of DCL are the primary operating subsidiaries of the Company. DCL primarily includes Discovery Channel and TLC networks in the U.S. The non-guarantor subsidiaries of DCL include the Company’s other U.S. and international networks, education businesses, and most of the Company’s websites and other digital media services. The non-guarantor subsidiaries of DCL are wholly-owned subsidiaries of DCL with the exception of certain equity method investments. DCL is a wholly-owned subsidiary of DCH. The Company wholly owns DCH through a 33 1/3% direct ownership interest and a 66 2/3% indirect ownership interest through Discovery Holding Company (“DHC”), a wholly-owned subsidiary of the Company. DHC is included in the other non-guarantor subsidiaries of the Company. |
Basis of Presentation |
Solely for purposes of presenting the condensed consolidating financial statements, investments in the Company’s subsidiaries have been accounted for by their respective parent company using the equity method. Accordingly, in the following condensed consolidating financial statements, the equity method has been applied to (i) the Company’s interests in DCH and the other non-guarantor subsidiaries of the Company, (ii) DCH’s interest in DCL and (iii) DCL’s interests in the non-guarantor subsidiaries of DCL. Inter-company accounts and transactions have been eliminated to arrive at the consolidated financial statement amounts for the Company. The Company’s accounting bases in all subsidiaries, including goodwill and recognized intangible assets, have been “pushed-down” to the applicable subsidiaries. |
The operations of certain of the Company’s international subsidiaries are excluded from the Company’s consolidated U.S. income tax return. Tax expense related to permanent differences has been allocated to the entity that created the difference. Tax expense related to temporary differences has been allocated to the entity that created the difference, where identifiable. The remaining temporary differences are allocated to each entity included in the Company’s consolidated U.S. income tax return based on each entity’s relative pretax income. Deferred taxes have been allocated based upon the temporary differences between the carrying amounts of the respective assets and liabilities of the applicable entities. |
The condensed consolidating financial statements should be read in conjunction with the consolidated financial statements of the Company. |
Condensed Consolidating Balance Sheet |
September 30, 2014 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
ASSETS | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | | $ | — | | | $ | 32 | | | $ | 344 | | | $ | — | | | $ | — | | | $ | 376 | |
|
Receivables, net | | — | | | — | | | 434 | | | 1,030 | | | — | | | — | | | 1,464 | |
|
Content rights, net | | — | | | — | | | 10 | | | 369 | | | — | | | — | | | 379 | |
|
Deferred income taxes | | — | | | — | | | 38 | | | 49 | | | — | | | — | | | 87 | |
|
Prepaid expenses and other current assets | | — | | | — | | | 162 | | | 116 | | | — | | | — | | | 278 | |
|
Intercompany trade receivables, net | | — | | | — | | | 54 | | | — | | | — | | | (54 | ) | | — | |
|
Total current assets | | — | | | — | | | 730 | | | 1,908 | | | — | | | (54 | ) | | 2,584 | |
|
Investment in and advances to subsidiaries | | 5,931 | | | 5,943 | | | 8,015 | | | — | | | 3,967 | | | (23,856 | ) | | — | |
|
Noncurrent content rights, net | | — | | | — | | | 639 | | | 1,389 | | | — | | | — | | | 2,028 | |
|
Goodwill | | — | | | — | | | 3,769 | | | 4,551 | | | — | | | — | | | 8,320 | |
|
Intangible assets, net | | — | | | — | | | 310 | | | 1,781 | | | — | | | — | | | 2,091 | |
|
Equity method investments | | — | | | — | | | 20 | | | 647 | | | — | | | — | | | 667 | |
|
Other noncurrent assets | | — | | | 20 | | | 154 | | | 529 | | | — | | | (20 | ) | | 683 | |
|
Total assets | | $ | 5,931 | | | $ | 5,963 | | | $ | 13,637 | | | $ | 10,805 | | | $ | 3,967 | | | $ | (23,930 | ) | | $ | 16,373 | |
|
LIABILITIES AND EQUITY | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | |
Current portion of debt | | $ | — | | | $ | — | | | $ | 980 | | | $ | 15 | | | $ | — | | | $ | — | | | $ | 995 | |
|
Other current liabilities | | 44 | | | 12 | | | 460 | | | 1,037 | | | — | | | — | | | 1,553 | |
|
Intercompany trade payables, net | | — | | | — | | | — | | | 54 | | | — | | | (54 | ) | | — | |
|
Total current liabilities | | 44 | | | 12 | | | 1,440 | | | 1,106 | | | — | | | (54 | ) | | 2,548 | |
|
Noncurrent portion of debt | | — | | | — | | | 5,871 | | | 282 | | | — | | | — | | | 6,153 | |
|
Other noncurrent liabilities | | 4 | | | — | | | 383 | | | 615 | | | 20 | | | (20 | ) | | 1,002 | |
|
Total liabilities | | 48 | | | 12 | | | 7,694 | | | 2,003 | | | 20 | | | (74 | ) | | 9,703 | |
|
Redeemable noncontrolling interests | | — | | | — | | | — | | | 785 | | | — | | | — | | | 785 | |
|
Equity attributable to Discovery Communications, Inc. | | 5,883 | | | 5,951 | | | 5,943 | | | 8,016 | | | 3,947 | | | (23,857 | ) | | 5,883 | |
|
Noncontrolling interests | | — | | | — | | | — | | | 1 | | | — | | | 1 | | | 2 | |
|
Total equity | | 5,883 | | | 5,951 | | | 5,943 | | | 8,017 | | | 3,947 | | | (23,856 | ) | | 5,885 | |
|
Total liabilities and equity | | $ | 5,931 | | | $ | 5,963 | | | $ | 13,637 | | | $ | 10,805 | | | $ | 3,967 | | | $ | (23,930 | ) | | $ | 16,373 | |
|
Condensed Consolidating Balance Sheet |
December 31, 2013 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
ASSETS | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | | $ | — | | | $ | 123 | | | $ | 285 | | | $ | — | | | $ | — | | | $ | 408 | |
|
Receivables, net | | — | | | — | | | 449 | | | 922 | | | — | | | — | | | 1,371 | |
|
Content rights, net | | — | | | — | | | 12 | | | 265 | | | — | | | — | | | 277 | |
|
Deferred income taxes | | — | | | — | | | 31 | | | 42 | | | — | | | — | | | 73 | |
|
Prepaid expenses and other current assets | | 52 | | | — | | | 143 | | | 86 | | | — | | | — | | | 281 | |
|
Intercompany trade receivables, net | | — | | | — | | | 286 | | | — | | | — | | | (286 | ) | | — | |
|
Total current assets | | 52 | | | — | | | 1,044 | | | 1,600 | | | — | | | (286 | ) | | 2,410 | |
|
Investment in and advances to subsidiaries | | 6,147 | | | 6,155 | | | 7,135 | | | — | | | 4,112 | | | (23,549 | ) | | — | |
|
Noncurrent content rights, net | | — | | | — | | | 615 | | | 1,268 | | | — | | | — | | | 1,883 | |
|
Goodwill | | — | | | — | | | 3,769 | | | 3,572 | | | — | | | — | | | 7,341 | |
|
Intangible assets, net | | — | | | — | | | 320 | | | 1,245 | | | — | | | — | | | 1,565 | |
|
Equity method investments | | — | | | — | | | 330 | | | 757 | | | — | | | — | | | 1,087 | |
|
Other noncurrent assets | | — | | | 19 | | | 173 | | | 521 | | | — | | | (20 | ) | | 693 | |
|
Total assets | | $ | 6,199 | | | $ | 6,174 | | | $ | 13,386 | | | $ | 8,963 | | | $ | 4,112 | | | $ | (23,855 | ) | | $ | 14,979 | |
|
LIABILITIES AND EQUITY | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | |
Current portion of debt | | $ | — | | | $ | — | | | $ | 5 | | | $ | 12 | | | $ | — | | | $ | — | | | $ | 17 | |
|
Other current liabilities | | 1 | | | 6 | | | 421 | | | 849 | | | — | | | — | | | 1,277 | |
|
Intercompany trade payables, net | | — | | | — | | | — | | | 286 | | | — | | | (286 | ) | | — | |
|
Total current liabilities | | 1 | | | 6 | | | 426 | | | 1,147 | | | — | | | (286 | ) | | 1,294 | |
|
Noncurrent portion of debt | | — | | | — | | | 6,343 | | | 139 | | | — | | | — | | | 6,482 | |
|
Other noncurrent liabilities | | 2 | | | — | | | 462 | | | 505 | | | 21 | | | (20 | ) | | 970 | |
|
Total liabilities | | 3 | | | 6 | | | 7,231 | | | 1,791 | | | 21 | | | (306 | ) | | 8,746 | |
|
Redeemable noncontrolling interests | | — | | | — | | | — | | | 36 | | | — | | | — | | | 36 | |
|
Equity attributable to Discovery Communications, Inc. | | 6,196 | | | 6,168 | | | 6,155 | | | 7,135 | | | 4,091 | | | (23,549 | ) | | 6,196 | |
|
Noncontrolling interests | | — | | | — | | | — | | | 1 | | | — | | | — | | | 1 | |
|
Total equity | | 6,196 | | | 6,168 | | | 6,155 | | | 7,136 | | | 4,091 | | | (23,549 | ) | | 6,197 | |
|
Total liabilities and equity | | $ | 6,199 | | | $ | 6,174 | | | $ | 13,386 | | | $ | 8,963 | | | $ | 4,112 | | | $ | (23,855 | ) | | $ | 14,979 | |
|
Condensed Consolidating Statement of Operations |
Three Months Ended September 30, 2014 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Revenues | | $ | — | | | $ | — | | | $ | 465 | | | $ | 1,104 | | | $ | — | | | $ | (1 | ) | | $ | 1,568 | |
|
Costs of revenues, excluding depreciation and amortization | | — | | | — | | | 108 | | | 423 | | | — | | | (2 | ) | | 529 | |
|
Selling, general and administrative | | 4 | | | — | | | 47 | | | 380 | | | — | | | 1 | | | 432 | |
|
Depreciation and amortization | | — | | | — | | | 7 | | | 78 | | | — | | | — | | | 85 | |
|
Restructuring and other charges | | — | | | — | | | — | | | 11 | | | — | | | — | | | 11 | |
|
Total costs and expenses | | 4 | | | — | | | 162 | | | 892 | | | — | | | (1 | ) | | 1,057 | |
|
Operating (loss) income | | (4 | ) | | — | | | 303 | | | 212 | | | — | | | — | | | 511 | |
|
Equity in earnings of subsidiaries | | 282 | | | 282 | | | 122 | | | — | | | 188 | | | (874 | ) | | — | |
|
Interest expense | | — | | | — | | | (81 | ) | | (2 | ) | | — | | | — | | | (83 | ) |
|
Income from equity investees, net | | — | | | — | | | 3 | | | 10 | | | — | | | — | | | 13 | |
|
Other income (expense), net | | — | | | — | | | 20 | | | (19 | ) | | — | | | — | | | 1 | |
|
Income from continuing operations before income taxes | | 278 | | | 282 | | | 367 | | | 201 | | | 188 | | | (874 | ) | | 442 | |
|
Benefit from (provision for) income taxes | | 2 | | | — | | | (85 | ) | | (72 | ) | | — | | | — | | | (155 | ) |
|
Net income | | 280 | | | 282 | | | 282 | | | 129 | | | 188 | | | (874 | ) | | 287 | |
|
Net income attributable to redeemable noncontrolling interests | | — | | | — | | | — | | | — | | | — | | | (7 | ) | | (7 | ) |
|
Net income available to Discovery Communications, Inc. | | $ | 280 | | | $ | 282 | | | $ | 282 | | | $ | 129 | | | $ | 188 | | | $ | (881 | ) | | $ | 280 | |
|
Condensed Consolidating Statement of Operations |
Three Months Ended September 30, 2013 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Revenues | | $ | — | | | $ | — | | | $ | 463 | | | $ | 914 | | | $ | — | | | $ | (2 | ) | | $ | 1,375 | |
|
Costs of revenues, excluding depreciation and amortization | | — | | | — | | | 108 | | | 329 | | | — | | | (2 | ) | | 435 | |
|
Selling, general and administrative | | 3 | | | (2 | ) | | 80 | | | 309 | | | — | | | — | | | 390 | |
|
Depreciation and amortization | | — | | | — | | | 8 | | | 72 | | | — | | | — | | | 80 | |
|
Restructuring and other charges | | — | | | — | | | 1 | | | — | | | — | | | — | | | 1 | |
|
Gain on disposition | | — | | | — | | | — | | | (19 | ) | | — | | | — | | | (19 | ) |
|
Total costs and expenses | | 3 | | | (2 | ) | | 197 | | | 691 | | | — | | | (2 | ) | | 887 | |
|
Operating (loss) income | | (3 | ) | | 2 | | | 266 | | | 223 | | | — | | | — | | | 488 | |
|
Equity in earnings of subsidiaries | | 257 | | | 255 | | | 143 | | | — | | | 171 | | | (826 | ) | | — | |
|
Interest expense | | — | | | — | | | (78 | ) | | (2 | ) | | — | | | — | | | (80 | ) |
|
Income (loss) from equity investees, net | | — | | | — | | | 1 | | | (1 | ) | | — | | | — | | | — | |
|
Other income, net | | — | | | — | | | 4 | | | 7 | | | — | | | — | | | 11 | |
|
Income from continuing operations before income taxes | | 254 | | | 257 | | | 336 | | | 227 | | | 171 | | | (826 | ) | | 419 | |
|
Benefit from (provision for) income taxes | | 1 | | | — | | | (81 | ) | | (83 | ) | | — | | | — | | | (163 | ) |
|
Net income | | 255 | | | 257 | | | 255 | | | 144 | | | 171 | | | (826 | ) | | 256 | |
|
Net income attributable to noncontrolling interests | | — | | | — | | | — | | | — | | | — | | | (1 | ) | | (1 | ) |
|
Net income available to Discovery Communications, Inc. | | $ | 255 | | | $ | 257 | | | $ | 255 | | | $ | 144 | | | $ | 171 | | | $ | (827 | ) | | $ | 255 | |
|
Condensed Consolidating Statement of Operations |
Nine Months Ended September 30, 2014 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Revenues | | $ | — | | | $ | — | | | $ | 1,414 | | | $ | 3,181 | | | $ | — | | | $ | (6 | ) | | $ | 4,589 | |
|
Costs of revenues, excluding depreciation and amortization | | — | | | — | | | 337 | | | 1,194 | | | — | | | (5 | ) | | 1,526 | |
|
Selling, general and administrative | | 11 | | | — | | | 158 | | | 1,079 | | | — | | | (1 | ) | | 1,247 | |
|
Depreciation and amortization | | — | | | — | | | 24 | | | 219 | | | — | | | — | | | 243 | |
|
Restructuring and other charges | | — | | | — | | | 1 | | | 18 | | | — | | | — | | | 19 | |
|
Gain on disposition | | — | | | — | | | — | | | (31 | ) | | — | | | — | | | (31 | ) |
|
Total costs and expenses | | 11 | | | — | | | 520 | | | 2,479 | | | — | | | (6 | ) | | 3,004 | |
|
Operating (loss) income | | (11 | ) | | — | | | 894 | | | 702 | | | — | | | — | | | 1,585 | |
|
Equity in earnings of subsidiaries | | 896 | | | 896 | | | 434 | | | — | | | 597 | | | (2,823 | ) | | — | |
|
Interest expense | | — | | | — | | | (241 | ) | | (6 | ) | | — | | | — | | | (247 | ) |
|
Income from equity investees, net | | — | | | — | | | 9 | | | 25 | | | — | | | — | | | 34 | |
|
Other income (expense), net | | — | | | — | | | 26 | | | (15 | ) | | — | | | — | | | 11 | |
|
Income from continuing operations before income taxes | | 885 | | | 896 | | | 1,122 | | | 706 | | | 597 | | | (2,823 | ) | | 1,383 | |
|
Benefit from (provision for) income taxes | | 4 | | | — | | | (226 | ) | | (259 | ) | | — | | | — | | | (481 | ) |
|
Net income | | 889 | | | 896 | | | 896 | | | 447 | | | 597 | | | (2,823 | ) | | 902 | |
|
Net income attributable to noncontrolling interests | | — | | | — | | | — | | | — | | | — | | | (2 | ) | | (2 | ) |
|
Net income attributable to redeemable noncontrolling interests | | — | | | — | | | — | | | — | | | — | | | (11 | ) | | (11 | ) |
|
Net income available to Discovery Communications, Inc. | | $ | 889 | | | $ | 896 | | | $ | 896 | | | $ | 447 | | | $ | 597 | | | $ | (2,836 | ) | | $ | 889 | |
|
Condensed Consolidating Statement of Operations |
Nine Months Ended September 30, 2013 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Revenues | | $ | — | | | $ | — | | | $ | 1,390 | | | $ | 2,615 | | | $ | — | | | $ | (7 | ) | | $ | 3,998 | |
|
Costs of revenues, excluding depreciation and amortization | | — | | | — | | | 334 | | | 886 | | | — | | | (6 | ) | | 1,214 | |
|
Selling, general and administrative | | 12 | | | — | | | 201 | | | 937 | | | — | | | (1 | ) | | 1,149 | |
|
Depreciation and amortization | | — | | | — | | | 26 | | | 164 | | | — | | | — | | | 190 | |
|
Restructuring and other charges | | — | | | — | | | 1 | | | 10 | | | — | | | — | | | 11 | |
|
Gain on disposition | | — | | | — | | | — | | | (19 | ) | | — | | | — | | | (19 | ) |
|
Total costs and expenses | | 12 | | | — | | | 562 | | | 1,978 | | | — | | | (7 | ) | | 2,545 | |
|
Operating (loss) income | | (12 | ) | | — | | | 828 | | | 637 | | | — | | | — | | | 1,453 | |
|
Equity in earnings of subsidiaries | | 794 | | | 794 | | | 467 | | | — | | | 529 | | | (2,584 | ) | | — | |
|
Interest expense | | — | | | — | | | (223 | ) | | (5 | ) | | — | | | — | | | (228 | ) |
|
Income (loss) from equity investees, net | | — | | | — | | | 3 | | | (12 | ) | | — | | | — | | | (9 | ) |
|
Other (expense) income, net | | — | | | — | | | (50 | ) | | 111 | | | — | | | — | | | 61 | |
|
Income from continuing operations before income taxes | | 782 | | | 794 | | | 1,025 | | | 731 | | | 529 | | | (2,584 | ) | | 1,277 | |
|
Benefit from (provision for) income taxes | | 4 | | | — | | | (231 | ) | | (263 | ) | | — | | | — | | | (490 | ) |
|
Net income | | 786 | | | 794 | | | 794 | | | 468 | | | 529 | | | (2,584 | ) | | 787 | |
|
Net income attributable to noncontrolling interests | | — | | | — | | | — | | | — | | | — | | | (1 | ) | | (1 | ) |
|
Net income available to Discovery Communications, Inc. | | $ | 786 | | | $ | 794 | | | $ | 794 | | | $ | 468 | | | $ | 529 | | | $ | (2,585 | ) | | $ | 786 | |
|
Condensed Consolidating Statement of Comprehensive Income |
Three Months Ended September 30, 2014 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Net income | | $ | 280 | | | $ | 282 | | | $ | 282 | | | $ | 129 | | | $ | 188 | | | $ | (874 | ) | | $ | 287 | |
|
Other comprehensive (loss) income, net of tax: | | | | | | | | | | | | | | |
Currency translation adjustments | | (187 | ) | | (187 | ) | | (187 | ) | | (185 | ) | | (125 | ) | | 684 | | | (187 | ) |
|
Derivative and market value adjustments | | 3 | | | 3 | | | 3 | | | 5 | | | 2 | | | (13 | ) | | 3 | |
|
Comprehensive income (loss) | | 96 | | | 98 | | | 98 | | | (51 | ) | | 65 | | | (203 | ) | | 103 | |
|
Comprehensive income attributable to redeemable noncontrolling interests | | 27 | | | 27 | | | 27 | | | 27 | | | 18 | | | (106 | ) | | 20 | |
|
Comprehensive income attributable to Discovery Communications, Inc. | | $ | 123 | | | $ | 125 | | | $ | 125 | | | $ | (24 | ) | | $ | 83 | | | $ | (309 | ) | | $ | 123 | |
|
Condensed Consolidating Statement of Comprehensive Income |
Three Months Ended September 30, 2013 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Net income | | $ | 255 | | | $ | 257 | | | $ | 255 | | | $ | 144 | | | $ | 171 | | | $ | (826 | ) | | $ | 256 | |
|
Other comprehensive income, net of tax: | | | | | | | | | | | | | | |
Currency translation adjustments | | 104 | | | 104 | | | 104 | | | 105 | | | 69 | | | (382 | ) | | 104 | |
|
Comprehensive income | | 359 | | | 361 | | | 359 | | | 249 | | | 240 | | | (1,208 | ) | | 360 | |
|
Comprehensive income attributable to noncontrolling interests | | — | | | — | | | — | | | — | | | — | | | (1 | ) | | (1 | ) |
|
Comprehensive income attributable to Discovery Communications, Inc. | | $ | 359 | | | $ | 361 | | | $ | 359 | | | $ | 249 | | | $ | 240 | | | $ | (1,209 | ) | | $ | 359 | |
|
Condensed Consolidating Statement of Comprehensive Income |
Nine Months Ended September 30, 2014 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Net income | | $ | 889 | | | $ | 896 | | | $ | 896 | | | $ | 447 | | | $ | 597 | | | $ | (2,823 | ) | | $ | 902 | |
|
Other comprehensive (loss) income, net of tax: | | | | | | | | | | | | | | |
Currency translation adjustments | | (219 | ) | | (219 | ) | | (219 | ) | | (217 | ) | | (146 | ) | | 801 | | | (219 | ) |
|
Derivative and market value adjustments | | (6 | ) | | (6 | ) | | (6 | ) | | 3 | | | (4 | ) | | 13 | | | (6 | ) |
|
Comprehensive income | | 664 | | | 671 | | | 671 | | | 233 | | | 447 | | | (2,009 | ) | | 677 | |
|
Comprehensive income attributable to noncontrolling interests | | — | | | — | | | — | | | — | | | — | | | (2 | ) | | (2 | ) |
|
Comprehensive income attributable to redeemable noncontrolling interests | | 26 | | | 26 | | | 26 | | | 26 | | | 17 | | | (106 | ) | | 15 | |
|
Comprehensive income attributable to Discovery Communications, Inc. | | $ | 690 | | | $ | 697 | | | $ | 697 | | | $ | 259 | | | $ | 464 | | | $ | (2,117 | ) | | $ | 690 | |
|
Condensed Consolidating Statement of Comprehensive Income |
Nine Months Ended September 30, 2013 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Net income | | $ | 786 | | | $ | 794 | | | $ | 794 | | | $ | 468 | | | $ | 529 | | | $ | (2,584 | ) | | $ | 787 | |
|
Other comprehensive (loss) income, net of tax: | | | | | | | | | | | | | | |
Currency translation adjustments | | (3 | ) | | (3 | ) | | (3 | ) | | (1 | ) | | (2 | ) | | 9 | | | (3 | ) |
|
Derivative and market value adjustments | | 6 | | | 6 | | | 6 | | | 9 | | | 4 | | | (25 | ) | | 6 | |
|
Comprehensive income | | 789 | | | 797 | | | 797 | | | 476 | | | 531 | | | (2,600 | ) | | 790 | |
|
Comprehensive income attributable to noncontrolling interests | | — | | | — | | | — | | | — | | | — | | | (1 | ) | | (1 | ) |
|
Comprehensive loss attributable to redeemable noncontrolling interests | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | (4 | ) | | 1 | |
|
Comprehensive income attributable to Discovery Communications, Inc. | | $ | 790 | | | $ | 798 | | | $ | 798 | | | $ | 477 | | | $ | 532 | | | $ | (2,605 | ) | | $ | 790 | |
|
Condensed Consolidating Statement of Cash Flows |
Nine Months Ended September 30, 2014 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Operating Activities | | | | | | | | | | | | | | |
Cash provided by operating activities | | $ | 91 | | | $ | 6 | | | $ | 360 | | | $ | 436 | | | $ | — | | | $ | — | | | $ | 893 | |
|
Investing Activities | | | | | | | | | | | | | | |
Purchases of property and equipment | | — | | | — | | | (17 | ) | | (68 | ) | | — | | | — | | | (85 | ) |
|
Business acquisitions, net of cash acquired | | — | | | — | | | (64 | ) | | (305 | ) | | — | | | — | | | (369 | ) |
|
Proceeds from disposition | | — | | | — | | | — | | | 45 | | | — | | | — | | | 45 | |
|
Distributions from equity method investees | | — | | | — | | | — | | | 58 | | | — | | | — | | | 58 | |
|
Investments in equity method investees, net | | — | | | — | | | (4 | ) | | (170 | ) | | — | | | — | | | (174 | ) |
|
Other investing activities, net | | — | | | — | | | — | | | (4 | ) | | — | | | — | | | (4 | ) |
|
Cash used in investing activities | | — | | | — | | | (85 | ) | | (444 | ) | | — | | | — | | | (529 | ) |
|
Financing Activities | | | | | | | | | | | | | | |
Borrowings from debt, net of discount and issuance costs | | — | | | — | | | 409 | | | — | | | — | | | — | | | 409 | |
|
Borrowings under revolving credit facility | | — | | | — | | | — | | | 145 | | | — | | | — | | | 145 | |
|
Commercial paper, net | | — | | | — | | | 126 | | | — | | | — | | | — | | | 126 | |
|
Principal repayments of capital lease obligations | | — | | | — | | | (3 | ) | | (10 | ) | | — | | | — | | | (13 | ) |
|
Repurchases of stock | | (1,067 | ) | | — | | | — | | | — | | | — | | | — | | | (1,067 | ) |
|
Cash proceeds from equity-based plans, net | | 39 | | | — | | | — | | | — | | | — | | | — | | | 39 | |
|
Inter-company contributions and other financing activities, net | | 937 | | | (6 | ) | | (898 | ) | | (41 | ) | | — | | | — | | | (8 | ) |
|
Cash (used in) provided by financing activities | | (91 | ) | | (6 | ) | | (366 | ) | | 94 | | | — | | | — | | | (369 | ) |
|
Effect of exchange rate changes on cash and cash equivalents | | — | | | — | | | — | | | (27 | ) | | — | | | — | | | (27 | ) |
|
Net change in cash and cash equivalents | | — | | | — | | | (91 | ) | | 59 | | | — | | | — | | | (32 | ) |
|
Cash and cash equivalents, beginning of period | | — | | | — | | | 123 | | | 285 | | | — | | | — | | | 408 | |
|
Cash and cash equivalents, end of period | | $ | — | | | $ | — | | | $ | 32 | | | $ | 344 | | | $ | — | | | $ | — | | | $ | 376 | |
|
Condensed Consolidating Statement of Cash Flows |
Nine Months Ended September 30, 2013 |
(in millions) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Discovery | | DCH | | DCL | | Non-Guarantor | | Other Non- | | Reclassifications | | Discovery and |
Subsidiaries of | Guarantor | and | Subsidiaries |
DCL | Subsidiaries of Discovery | Eliminations | |
Operating Activities | | | | | | | | | | | | | | |
Cash provided by (used in) operating activities | | $ | 23 | | | $ | (13 | ) | | $ | 256 | | | $ | 664 | | | $ | — | | | $ | — | | | $ | 930 | |
|
Investing Activities | | | | | | | | | | | | | | |
Purchases of property and equipment | | — | | | — | | | (17 | ) | | (59 | ) | | — | | | — | | | (76 | ) |
|
Business acquisitions, net of cash acquired | | — | | | — | | | — | | | (1,832 | ) | | — | | | — | | | (1,832 | ) |
|
Hedging instruments, net | | — | | | — | | | (55 | ) | | — | | | — | | | — | | | (55 | ) |
|
Proceeds from disposition | | — | | | — | | | — | | | 28 | | | — | | | — | | | 28 | |
|
Distributions from equity method investees | | — | | | — | | | — | | | 23 | | | — | | | — | | | 23 | |
|
Investments in equity method investees, net | | — | | | — | | | — | | | (28 | ) | | — | | | — | | | (28 | ) |
|
Other investing activities, net | | — | | | — | | | — | | | (1 | ) | | — | | | — | | | (1 | ) |
|
Cash used in investing activities | | — | | | — | | | (72 | ) | | (1,869 | ) | | — | | | — | | | (1,941 | ) |
|
Financing Activities | | | | | | | | | | | | | | |
Borrowings from debt, net of discount and issuance costs | | — | | | — | | | 1,186 | | | — | | | — | | | — | | | 1,186 | |
|
Principal repayments of capital lease obligations | | — | | | — | | | (5 | ) | | (16 | ) | | — | | | — | | | (21 | ) |
|
Repurchases of stock | | (969 | ) | | — | | | — | | | — | | | — | | | — | | | (969 | ) |
|
Cash proceeds from equity-based plans, net | | 61 | | | — | | | — | | | — | | | — | | | — | | | 61 | |
|
Inter-company contributions and other financing activities, net | | 885 | | | 13 | | | (2,237 | ) | | 1,336 | | | — | | | — | | | (3 | ) |
|
Cash (used in) provided by financing activities | | (23 | ) | | 13 | | | (1,056 | ) | | 1,320 | | | — | | | — | | | 254 | |
|
Effect of exchange rate changes on cash and cash equivalents | | — | | | — | | | — | | | (5 | ) | | — | | | — | | | (5 | ) |
|
Net change in cash and cash equivalents | | — | | | — | | | (872 | ) | | 110 | | | — | | | — | | | (762 | ) |
|
Cash and cash equivalents, beginning of period | | — | | | — | | | 1,022 | | | 179 | | | — | | | — | | | 1,201 | |
|
Cash and cash equivalents, end of period | | $ | — | | | $ | — | | | $ | 150 | | | $ | 289 | | | $ | — | | | $ | — | | | $ | 439 | |
|
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