Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Discovery, Inc. | |
Entity Central Index Key | 1,437,107 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Series A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 156,245,469 | |
Series B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 6,512,378 | |
Series C Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 359,666,216 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 392,000,000 | $ 7,309,000,000 |
Receivables, net | 2,747,000,000 | 1,838,000,000 |
Content rights, net | 358,000,000 | 410,000,000 |
Prepaid expenses and other current assets | 409,000,000 | 434,000,000 |
Total current assets | 3,906,000,000 | 9,991,000,000 |
Noncurrent content rights, net | 3,258,000,000 | 2,213,000,000 |
Property and equipment, net | 784,000,000 | 597,000,000 |
Assets held for sale | 68,000,000 | 0 |
Goodwill, net | 13,119,000,000 | 7,073,000,000 |
Intangible assets, net | 10,368,000,000 | 1,770,000,000 |
Equity method investments, including note receivable (See Note 3) | 1,023,000,000 | 335,000,000 |
Other noncurrent assets | 966,000,000 | 576,000,000 |
Total assets | 33,492,000,000 | 22,555,000,000 |
Current liabilities: | ||
Accounts payable | 300,000,000 | 277,000,000 |
Accrued liabilities | 1,473,000,000 | 1,309,000,000 |
Deferred revenues | 277,000,000 | 255,000,000 |
Current portion of debt | 646,000,000 | 30,000,000 |
Total current liabilities | 2,696,000,000 | 1,871,000,000 |
Noncurrent portion of debt | 17,683,000,000 | 14,755,000,000 |
Deferred income taxes | 1,968,000,000 | 319,000,000 |
Other noncurrent liabilities | 1,109,000,000 | 587,000,000 |
Total liabilities | 23,456,000,000 | 17,532,000,000 |
Commitments and contingencies (See Note 17) | ||
Redeemable noncontrolling interests | 410,000,000 | 413,000,000 |
Discovery, Inc. stockholders’ equity: | ||
Additional paid-in capital | 10,590,000,000 | 7,295,000,000 |
Treasury stock, at cost | (6,737,000,000) | (6,737,000,000) |
Retained earnings | 4,867,000,000 | 4,632,000,000 |
Accumulated other comprehensive loss | (790,000,000) | (585,000,000) |
Total Discovery, Inc. stockholders' equity | 7,936,000,000 | 4,610,000,000 |
Noncontrolling interests | 1,690,000,000 | 0 |
Total equity | 9,626,000,000 | 4,610,000,000 |
Total liabilities and equity | 33,492,000,000 | 22,555,000,000 |
Series A Convertible Preferred Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Convertible preferred stock | 0 | 0 |
Series C Convertible Preferred Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Convertible preferred stock | 0 | 0 |
Additional paid-in capital | 0 | |
Series A Common Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Common stock | 1,000,000 | 1,000,000 |
Treasury stock, at cost | (171,000,000) | |
Series B Common Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Common stock | 0 | 0 |
Series C Common Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Common stock | 5,000,000 | $ 4,000,000 |
Treasury stock, at cost | $ (6,600,000,000) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Series A-1 Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock authorized (in shares) | 8 | |
Preferred stock issued (in shares) | 8 | |
Series C-1 Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock authorized (in shares) | 6 | |
Preferred stock issued (in shares) | 6 | |
Series A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 1,700 | 1,700 |
Common stock issued (in shares) | 159 | 157 |
Series B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 100 | 100 |
Common stock issued (in shares) | 7 | 7 |
Series C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 2,000 | 2,000 |
Common stock issued (in shares) | 524 | 383 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Revenues | $ 2,845 | $ 1,745 | $ 5,152 | $ 3,358 |
Costs and expenses: | ||||
Costs of revenues, excluding depreciation and amortization | 995 | 634 | 2,055 | 1,241 |
Selling, general and administrative | 687 | 389 | 1,296 | 804 |
Depreciation and amortization | 410 | 80 | 603 | 160 |
Restructuring and other charges | 187 | 8 | 428 | 32 |
(Gain) loss on disposition | (84) | 4 | (84) | 4 |
Total costs and expenses | 2,195 | 1,115 | 4,298 | 2,241 |
Operating income | 650 | 630 | 854 | 1,117 |
Interest expense | (196) | (91) | (373) | (182) |
Loss on extinguishment of debt | 0 | 0 | 0 | (54) |
Loss from equity investees, net | (40) | (42) | (62) | (95) |
Other expense, net | (47) | (24) | (69) | (37) |
Income before income taxes | 367 | 473 | 350 | 749 |
Income tax expense | (123) | (93) | (103) | (148) |
Net income | 244 | 380 | 247 | 601 |
Net income attributable to noncontrolling interests | (23) | 0 | (28) | 0 |
Net income attributable to redeemable noncontrolling interests | (5) | (6) | (11) | (12) |
Net income available to Discovery, Inc. | $ 216 | $ 374 | $ 208 | $ 589 |
Series A, B and C Common Stock | ||||
Net income per share allocated to Discovery, Inc. Series A, B and C common stockholders: | ||||
Basic (in dollars per share) | $ 0.30 | $ 0.65 | $ 0.31 | $ 1.02 |
Diluted (in dollars per share) | $ 0.30 | $ 0.64 | $ 0.31 | $ 1.01 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 523 | 384 | 473 | 387 |
Diluted (in shares) | 712 | 578 | 661 | 583 |
Distribution | ||||
Revenues: | ||||
Revenues | $ 1,186 | $ 857 | $ 2,237 | $ 1,712 |
Advertising | ||||
Revenues: | ||||
Revenues | 1,563 | 805 | 2,575 | 1,492 |
Other | ||||
Revenues: | ||||
Revenues | $ 96 | $ 83 | $ 340 | $ 154 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 244 | $ 380 | $ 247 | $ 601 |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (206) | 91 | (203) | 159 |
Available-for-sale securities | 0 | 5 | 0 | 4 |
Derivatives | 29 | (9) | 24 | (17) |
Comprehensive income | 67 | 467 | 68 | 747 |
Comprehensive income attributable to noncontrolling interests | (23) | 0 | (28) | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | (5) | (6) | (11) | (13) |
Comprehensive income attributable to Discovery, Inc. | $ 39 | $ 461 | $ 29 | $ 734 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net income | $ 247 | $ 601 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Share-based compensation expense | 49 | 22 |
Depreciation and amortization | 603 | 160 |
Content rights expense and impairment | 1,660 | 910 |
(Gain) loss on disposition | (84) | 4 |
Equity in losses of equity method investee companies, net of cash distributions | 95 | 100 |
Deferred income taxes | (80) | (88) |
Loss on extinguishment of debt | 0 | 54 |
Other, net | 25 | 16 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Receivables, net | (176) | (249) |
Content rights and payables, net | (1,583) | (947) |
Accounts payable and accrued liabilities | (68) | (151) |
Income taxes receivable and prepaid income taxes | (42) | 32 |
Foreign currency and other, net | 70 | (21) |
Cash provided by operating activities | 716 | 443 |
Investing Activities | ||
Business acquisitions, net of cash acquired | (8,565) | 0 |
Payments for investments | (48) | (270) |
Proceeds from disposition, net of cash disposed | 107 | 29 |
Purchases of property and equipment | (82) | (78) |
Distributions from equity method investees | 0 | 18 |
Proceeds from derivative instruments, net | 1 | 5 |
Other investing activities, net | 4 | 3 |
Cash used in investing activities | (8,583) | (293) |
Financing Activities | ||
Commercial paper borrowings, net | 579 | 25 |
Borrowings under revolving credit facility | 0 | 350 |
Principal repayments of revolving credit facility | (50) | (200) |
Borrowings under term loan facilities | 2,000 | 0 |
Principal repayments of term loans | (1,500) | 0 |
Borrowings from debt, net of discount and including premiums | 0 | 659 |
Principal repayments of debt, including discount payment and premiums to par value | 0 | (650) |
Principal repayments of capital lease obligations | (25) | (19) |
Repurchases of stock | 0 | (501) |
Cash settlement of common stock repurchase contracts | 58 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (59) | (20) |
Share-based plan proceeds, net | 26 | 11 |
Borrowings under program financing line of credit | 23 | 0 |
Other financing activities, net | (17) | (8) |
Cash provided by (used in) financing activities | 977 | (295) |
Effect of exchange rate changes on cash and cash equivalents | (27) | 51 |
Net change in cash and cash equivalents | (6,917) | (94) |
Cash and cash equivalents, beginning of period | 7,309 | 300 |
Cash and cash equivalents, end of period | $ 392 | $ 206 |
Consolidated Statements of Equi
Consolidated Statements of Equity - 6 months ended Jun. 30, 2018 - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Discovery, Inc. Stockholders’ Equity | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2017 | 14 | 547 | |||||||
Beginning balance at Dec. 31, 2017 | $ 4,610 | $ 0 | $ 5 | $ 7,295 | $ (6,737) | $ 4,632 | $ (585) | $ 4,610 | $ 0 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Cumulative effect of accounting changes (See Note 1) | 7 | 33 | (26) | 7 | |||||
Net income available to Discovery, Inc. and attributable to noncontrolling interests | 236 | 208 | 208 | 28 | |||||
Other comprehensive loss | (179) | (179) | (179) | ||||||
Share-based compensation | 52 | 52 | 52 | ||||||
Tax settlements associated with share-based compensation | (17) | (17) | (17) | ||||||
Issuance of stock and noncontrolling interest in connection with the acquisition of Scripps Networks Interactive, Inc. (Scripps Networks) (in shares) | 139 | ||||||||
Issuance of stock and noncontrolling interest in connection with the acquisition of Scripps Networks Interactive, Inc. (Scripps Networks) | 4,918 | $ 1 | 3,217 | 3,218 | 1,700 | ||||
Dividends paid to noncontrolling interests | (38) | (38) | |||||||
Issuance of stock in connection with share-based plans (in shares) | 4 | ||||||||
Issuance of stock in connection with share-based plans | 43 | 43 | 43 | ||||||
Redeemable noncontrolling interest adjustments to redemption value | (6) | (6) | (6) | ||||||
Ending balance (in shares) at Jun. 30, 2018 | 14 | 690 | |||||||
Ending balance at Jun. 30, 2018 | $ 9,626 | $ 0 | $ 6 | $ 10,590 | $ (6,737) | $ 4,867 | $ (790) | $ 7,936 | $ 1,690 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Discovery, Inc. (“Discovery” or the “Company”) is a global media company that provides content across multiple distribution platforms, including pay-television ("pay-TV"), free-to-air ("FTA") and broadcast, various digital distribution platforms and content licensing agreements. The Company also operates a portfolio of digital direct-to-consumer products and production studios. As further discussed in Note 2, on March 6, 2018 , the Company acquired Scripps Networks Interactive, Inc. ("Scripps Networks") and changed its name from "Discovery Communications, Inc." to "Discovery, Inc." The Company presents the following business units: U.S. Networks, consisting principally of domestic television networks and digital content services, and International Networks, consisting principally of international television networks and digital content services; and Education and Other, consisting of a production studio and previously consolidated curriculum-based product and service offerings. (See Note 2.) Financial information for Discovery’s reportable segments is discussed in Note 18. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Discovery and its majority-owned subsidiaries in which a controlling interest is maintained. For each non-wholly owned subsidiary, the Company evaluates its ownership and other interests to determine whether it should consolidate the entity or account for its ownership interest as an investment. As part of its evaluation, the Company makes judgments in determining whether the entity is a variable interest entity ("VIE") and, if so, whether it is the primary beneficiary of the VIE and is thus required to consolidate the entity. (See Note 3.) Inter-company accounts and transactions between consolidated entities have been eliminated in consolidation. Unaudited Interim Financial Statements These consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles (“GAAP”) applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Discovery’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Form 10-K”). Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that affect the amounts and disclosures reported in the consolidated financial statements and accompanying notes. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change as actual results may differ materially from those estimates. These estimates are sometimes complex, sensitive to changes in assumptions and may require fair value determinations using Level 3 fair value measurements. Estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, allowances for doubtful accounts, content rights, depreciation and amortization, business combinations, share-based compensation, defined benefit plans, income taxes, other financial instruments, contingencies and the determination of whether the Company is the primary beneficiary of entities in which it holds variable interests. Preferred Stock Exchange Pursuant to the Preferred Share Exchange Agreement (the "Exchange Agreement") with Advance/Newhouse Programming Partnership ("Advance/Newhouse") on July 30, 2017 , Discovery agreed to issue newly designated shares of Series A-1 and Series C-1 preferred stock in exchange for all outstanding shares of Discovery's Series A and Series C convertible participating preferred stock (see Note 9), historical basic and diluted earnings per share available to Series C-1 preferred stockholders, previously Series C preferred stockholders, has changed. The transactions contemplated by the Exchange Agreement were completed on August 7, 2017 . Prior to the Exchange Agreement, Series C convertible preferred stock was convertible into Series C common stock at a conversion rate of 2.0 shares of Series C common stock for each share of Series C preferred stock. Following the exchange, the Series C-1 preferred stock is convertible into Series C common stock at a conversion rate of 19.3648 shares of Series C common stock for each share of Series C-1 preferred stock. As such, the Company has retrospectively recast basic and diluted earnings per share information for Series C preferred stock for the three and six months ended June 30, 2017 in order to conform with per share earnings that would have been available consistent with the ratios provided for the Series C-1 preferred stock. (See Note 14.) The Exchange Agreement did not impact historical basic and diluted earnings per share attributable to the Company's Series A, B and C common stockholders. The table below sets forth the impact of the preferred stock modification to the Company's calculated basic earnings per share for the three and six months ended June 30, 2017 . Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Pre-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 0.65 $ 1.02 Series C-1 convertible preferred stockholders $ 1.30 $ 2.04 Post-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 0.65 $ 1.02 Series C-1 convertible preferred stockholders $ 12.54 $ 19.65 Accounting and Reporting Pronouncements Adopted Recognition and Measurement of Financial Instruments ("ASU 2016-01") On January 1, 2018 , the Company adopted new guidance that enhances the reporting model for financial instruments. The new guidance impacted the financial statements as follows: • Gains and losses on common stock investments with readily determinable fair values are now recorded in other expense, net. Previously, the Company recorded these gains and losses in other comprehensive income ("OCI"). The Company adopted this guidance on a modified retrospective basis and recorded a transition adjustment to reclassify accumulated other comprehensive income to retained earnings of $26 million , net of tax, as of January 1, 2018 . The new guidance eliminates the available-for-sale ("AFS") classification for common stock investments. (See Note 3 and Note 9.) • Upon adoption of ASU 2016-01, the Lionsgate Collar, as defined in Note 3, no longer receives the hedge accounting designation. There is no change to the manner in which movements in fair value of these instruments will be reflected in the financial statements, as gains and losses will continue to be recorded as a component of other expense, net on the consolidated statements of operations. (See Note 7.) • For equity interests without readily determinable fair values previously accounted for under the cost method, the Company has elected to apply the "measurement alternative" prospectively. Under this election, investments are recorded at cost, less impairment, adjusted for subsequent observable price changes as of the date that an observable transaction takes place. The Company will recognize observable price changes as adjustments to fair values of these investments as a component of other expense, net. (See Note 3 and Note 4.) In addition, companies are required to perform a qualitative assessment each reporting period to identify impairments under a single-step model. When a qualitative assessment indicates that an impairment exists, the Company will need to estimate the fair value of the investment and recognize in current earnings an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and ASU 340-40, Other Assets and Deferred Costs ("Topic 606"), which updates numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance also addresses the accounting for costs incurred as part of obtaining or fulfilling a contract with a customer. The guidance in this Subtopic requires that costs of obtaining a contract be recognized as an asset and amortized as goods and services are transferred to the customer, as long as the costs are expected to be recovered. On January 1, 2018 , the Company adopted ASC Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018 . Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Following the modified retrospective approach for the adoption of this accounting guidance, the Company recorded an increase to opening retained earnings of $7 million as of January 1, 2018 , due to the cumulative impact of adopting Topic 606. The impact relates to the capitalization of sales commissions for long-term education-based services for our Education Business, which was disposed of as of April 30, 2018 . (See Note 2.) For the three and six months ended June 30, 2018 , the total amortization of capitalized sales commissions recorded as a component of cost of revenues was immaterial. There was no impact to revenue as a result of applying Topic 606 for the three and six months ended June 30, 2018 . (See Note 11.) Income Taxes In October 2016, the FASB issued guidance that simplifies the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new guidance includes requirements to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, and therefore eliminates the exception for an intra-entity transfer of an asset other than inventory. The Company adopted the new standard effective January 1, 2018 , and there was no material impact on the consolidated financial statements upon adoption. Clarifying the Definition of a Business On January 1, 2018 , the Company adopted new FASB guidance that amends the definition of a business and provides a threshold which must be considered to determine whether a transaction is an acquisition (or disposal) of an asset or a business. Under the previous accounting guidance, the minimum inputs and processes required for a “set” of assets and activities to meet the definition of a business was not specified. That lack of clarity led to broad interpretations of the definition of a business. Under the new guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset (or group of similar assets), the assets acquired would not represent a business. In addition, in order to be considered a business, an acquisition would have to include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. This guidance also narrows the definition of outputs by more closely aligning it with how outputs are described in the revenue recognition guidance. Compensation - Retirement Benefits On March 10, 2017 , the FASB issued new accounting guidance related to the presentation of net periodic pension costs and net periodic postretirement benefit costs, which requires employers sponsoring postretirement benefit plans to disaggregate the service cost component from the other components of net benefit cost. The standard also provides explicit guidance on how to present the service cost and other components of net benefit cost in the statement of operations and allows only the service cost component of net benefit cost to be eligible for capitalization. In conjunction with the acquisition of Scripps Networks, the Company evaluated the accounting for the Scripps Networks qualified defined benefit pension plan ("Pension Plan") and the Scripps Networks non-qualified unfunded Supplemental Executive Retirement Plan ("SERP"). As the Pension Plan was frozen effective December 31, 2009 and the Plan sponsor no longer grants credits to participants for service costs, the updated guidance on service costs is not applicable. The presentation as required by this guidance is reflected within the employee benefit plans footnote disclosures. (See Note 12.) Accounting and Reporting Pronouncements Not Yet Adopted Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued updated guidance which permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of the 2017 Tax Cuts and Jobs Act ("TCJA") to retained earnings for each period in which the effect of the change is recorded. The update also requires entities to disclose their accounting policy for releasing income tax effects from accumulated other comprehensive income. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2018 , with early adoption permitted. The Company is currently evaluating the impact that the pronouncement will have on our consolidated financial statements. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued significant amendments to hedge accounting which expand the eligibility for hedge accounting to more financial and nonfinancial hedging strategies. The guidance is intended to align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. In addition, the guidance amends the presentation and disclosure requirements and changes how companies assess effectiveness. The updated guidance is effective for fiscal years beginning after December 15, 2018 , with early adoption permitted. The Company expects to adopt the new guidance in the third quarter of 2018 with an effective date of January 1, 2018. Upon adoption, the Company will switch from the forward method to the spot method to assess hedge effectiveness for cross-currency swaps by de-designating and re-designating its net investment hedging relationships. The Company believes the spot method is an improved method for assessing effectiveness as it better matches the spot rate changes of the net investment. The Company will exclude the portion of the change in fair value related to cross-currency basis spreads from the assessment of hedge effectiveness and will amortize the excluded component into earnings over the life of the derivative. Previous gains and losses incurred under the forward method will remain in other comprehensive (loss) income under the currency translation adjustments component and will be reclassified to earnings when the net investment is sold or liquidated. The Company does not anticipate that the new standard will have a material impact on our consolidated financial statements, including the cumulative-effect adjustment required upon adoption. Goodwill Under the current accounting guidance, the quantitative goodwill impairment test is performed using a two-step process. The first step of the process is to compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the quantitative impairment test is not necessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the quantitative goodwill impairment test is required to be performed to measure the amount of impairment loss, if any. The second step of the quantitative goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. In other words, the estimated fair value of the reporting unit’s identifiable net assets excluding goodwill is compared to the fair value of the reporting unit as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. In January 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The new guidance eliminates Step 2 from the goodwill impairment test, and eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. Therefore, an entity will recognize impairment charges for the amount by which the carrying amount exceeds the reporting unit's fair value, and the same impairment assessment applies to all reporting units. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 . The amendments in this update must be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019 . The Company is currently evaluating the impact that the pronouncement will have on the consolidated financial statements. Leases In February 2016 , the FASB issued guidance on leases that will require lessees to recognize almost all of their leases on the balance sheet by recording a right-of-use asset and liability. The new standard will be effective for reporting periods beginning after December 15, 2018 , and the new accounting guidance may be applied at the beginning of the earliest comparative period presented in the year of adoption or at effective date without applying the provisions of the new guidance to comparative periods presented. The Company is currently evaluating the impact that the pronouncement will have on the consolidated financial statements; however, it is expected that assets and liabilities will increase materially when operating leases are recorded under the new standard. The method of transition will be determined when the Company has completed its evaluation. Concentrations Risk Customers The Company has long-term contracts with distributors around the world. For the U.S. Networks segment, more than 96% of distribution revenue comes from the Company's largest 10 distributors in the U.S. For the International Networks segment, approximately 39% of distribution revenue comes from the Company's largest 10 distributors outside of the U.S. Agreements in place with the 10 largest cable and satellite operators in the U.S. Networks and International Networks expire at various times from 2018 through 2024 . Although the Company seeks to renew its agreements with its distributors prior to expiration of a contract, a delay in securing a renewal that results in a service disruption, a failure to secure a renewal or a renewal on less favorable terms may have a material adverse effect on the Company’s financial condition and results of operations. Not only could the Company experience a reduction in distribution revenue, but it could also experience a reduction in advertising revenue, as viewership is impacted by affiliate subscriber levels. No individual customer accounted for more than 10% of total consolidated revenues for the three and six months ended June 30, 2018 or 2017 . As of June 30, 2018 and December 31, 2017 , the Company’s trade receivables did not represent a significant concentration of credit risk as the customers and markets in which the Company operates are varied and dispersed across many geographic areas. Financial Institutions Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk. The Company performs periodic evaluations of the relative credit standing of the financial institutions and attempts to limit exposure with any one institution. Additionally, the Company has cash and cash equivalents held by its foreign subsidiaries. Under the TCJA, the Company is subject to U.S. taxes for the deemed repatriation of certain cash balances held by foreign corporations. The Company intends to continue to permanently reinvest these funds outside of the U.S., and current plans do not demonstrate a need to repatriate them to fund our U.S. operations. Lender Counterparties There is a risk that the counterparties associated with the Company’s revolving credit facility will not be available to fund as obligated under the terms of the facility and that the Company may, at the time of such unavailability to fund, have limited or no access to the commercial paper market. If funding under the revolving credit facility is unavailable, the Company may have to acquire a replacement credit facility from different counterparties at a higher cost or may be unable to find a suitable replacement. Typically, the Company seeks to manage such risks from its revolving credit facility by contracting with experienced large financial institutions and monitoring the credit quality of its lenders. As of June 30, 2018 , the Company did not anticipate nonperformance by any of its counterparties. Counterparty Credit Risk The Company is exposed to the risk that the counterparties to outstanding derivative financial instruments will default on their obligations. The Company manages these credit risks by evaluating and monitoring the creditworthiness of, and concentration of risk with, the respective counterparties. In this regard, credit risk associated with outstanding derivative financial instruments is spread across a relatively broad counterparty base of banks and financial institutions. In connection with the Company's economic hedge of certain investments classified as common stock investments with readily determinable fair value, the Company has pledged shares as collateral to the derivative counterparty. (See Note 3.) The Company also has a limited number of arrangements where collateral is required to be posted in the instance that certain fair value thresholds are exceeded. As of June 30, 2018 , $3 million of collateral has been posted by the Company under these arrangements and classified as other noncurrent assets in the consolidated balance sheets. As of June 30, 2018 , our exposure to counterparty credit risk included derivative assets with an aggregate fair value of $58 million . (See Note 4.) |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | ACQUISITIONS AND DISPOSITIONS Acquisitions Scripps Networks On March 6, 2018 , Discovery acquired Scripps Networks pursuant to the Agreement and Plan of Merger (the "Merger Agreement") by and among Discovery, Scripps Networks and Skylight Merger Sub, Inc. dated July 30, 2017 (the "acquisition of Scripps Networks"). The acquisition of Scripps Networks allows the Company to offer complementary brands with an extensive library of original programming to consumers and to create a scale player with the ability to compete for audiences and advertising revenue. The acquisition is intended to extend Scripps Networks' content to a broader international audience through Discovery's global distribution infrastructure. Finally, the acquisition of Scripps Networks is expected to create cost synergies for the Company. The consideration paid for the acquisition of Scripps Networks consisted of (i) for Scripps Networks shareholders that did not make an election or elected to receive the mixed consideration, $65.82 in cash and 1.0584 shares of Discovery Series C common stock for each Scripps Networks share, (ii) for Scripps Networks shareholders that elected to receive the cash consideration, $90.00 in cash for each Scripps Networks share, (iii) for Scripps Networks shareholders that elected to receive the stock consideration, 3.9392 shares of Discovery Series C common stock for each Scripps Networks share, subject to the terms and conditions set forth in the Merger Agreement and (iv) transaction costs that Discovery paid for costs incurred by Scripps Networks in conjunction with the acquisition. The following table summarizes the components of the aggregate consideration paid for the acquisition of Scripps Networks (in millions of dollars and shares, except for per share amounts, share conversion ratio and stock option conversion ratio) as of March 6, 2018 . Scripps Networks equity Scripps Networks shares outstanding 131 Cash consideration per Scripps Networks share $ 65.82 Cash portion of consideration $ 8,590 Scripps Networks shares outstanding 131 Share conversion ratio per Scripps Networks share 1.0584 Discovery Series C common stock 138 Discovery Series C common stock price per share $ 23.01 Equity portion of consideration $ 3,179 Shares awarded under Scripps Networks share-based compensation programs 3 Scripps Networks share-based compensation awards converting to cash 2 Average cash consideration per share awarded less applicable exercise price $ 46.90 Cash portion of consideration $ 88 Scripps Networks share-based compensation awards 1 Share-based compensation conversion ratio (based on intrinsic value per award) 3 Discovery Series C common stock issued (1) or share-based compensation converted (2) 3 Average equity value (intrinsic value of Discovery Series C common stock or options to be issued) $ 15.19 Share-based compensation equity value $ 51 Less: post-combination compensation expense $ (12 ) Equity portion of consideration $ 39 Scripps Networks transaction costs paid by Discovery $ 117 Total consideration paid $ 12,013 Balances reflect rounding of dollar and share amounts to millions, which may result in differences for recalculated standalone amounts compared with the amounts presented above. The Company applied the acquisition method of accounting to Scripps Networks' business, whereby the excess of the fair value of the business over the fair value of identifiable net assets was allocated to goodwill. Goodwill reflects workforce and synergies expected from cost savings, operations and revenue enhancements of the combined company that are expected to result from the acquisition. The goodwill recorded as part of this acquisition has been provisionally allocated to the U.S. Networks and International Networks reportable segments in the amounts of $5.6 billion and $600 million , respectively, and is not amortizable for tax purposes. The preliminary opening balance sheet is subject to adjustment based on final assessment of the fair values of certain acquired assets, principally intangibles, equity method investments, contingent liabilities and income taxes. The Company used discounted cash flow ("DCF") analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation. The fair value of equity interests previously held by Scripps Networks was determined using the discounted cash flow and market value methods. The fair value for trade-names and trademarks was determined using an income approach based on the relief from royalty method; the remaining intangibles were determined using an income approach based on the excess earnings method. The fair value of interest-bearing debt was determined using publicly-traded prices. For the fair value estimates, the Company used: (i) projected discounted cash flows, (ii) historical and projected financial information, (iii) synergies including cost savings and (iv) attrition rates, as relevant, that market participants would consider when estimating fair values. As the Company continues to finalize the fair value of assets acquired and liabilities assumed, purchase price adjustments have been recorded and additional purchase price adjustments may be recorded during the measurement period. The Company reflects measurement period adjustments in the period in which the adjustments occur. The current period adjustments result from receipt of additional financial projections associated with certain equity method investments, contingent liability estimates and true-ups for estimated working capital balances. These adjustments did not impact the Company's statements of operations. The preliminary fair value of assets acquired and liabilities assumed, measurement period adjustments, as well as a reconciliation to consideration paid is presented in the table below (in millions). Preliminary March 6, 2018 Measurement Period Adjustments Updated Preliminary March 6, 2018 Accounts receivable $ 783 $ — $ 783 Other current assets 421 (24 ) 397 Content rights 1,088 — 1,088 Property and equipment 315 — 315 Goodwill 6,003 213 6,216 Intangible assets 9,175 — 9,175 Equity method investments, including note receivable 870 (132 ) 738 Other noncurrent assets 111 35 146 Current liabilities assumed (494 ) (133 ) (627 ) Debt assumed (2,481 ) — (2,481 ) Deferred income taxes (1,695 ) 8 (1,687 ) Other noncurrent liabilities (383 ) 33 (350 ) Noncontrolling interests (1,700 ) — (1,700 ) Total consideration paid $ 12,013 $ — $ 12,013 The table below presents a summary of intangible assets acquired and weighted average estimated useful life of these assets. Fair Value Weighted Average Useful Life in Years Trademarks and trade names $ 1,225 10 Advertiser relationships 4,995 10 Advertising backlog 280 1 Affiliate relationships 2,455 12 Broadcast licenses 220 6 Total intangible assets acquired $ 9,175 OWN On November 30, 2017 , the Company acquired from Harpo, Inc. ("Harpo") a controlling interest in the Oprah Winfrey Network ("OWN"), increasing Discovery’s ownership from 49.50% to 73.75% . OWN is a pay-TV network and website that provides adult lifestyle and entertainment content, which is focused on African American viewers. Discovery paid $70 million in cash and recognized a gain of $33 million to account for the difference between the carrying value and the fair value of the previously held 49.50% equity method investment. The fair value of the equity interest in the network is subject to the impact of the note payable to Discovery. Discovery consolidated OWN under the VIE consolidation model upon closing of the transaction. Following the acquisition of the incremental equity interest and change to governance provisions, the Company has determined that it is now the primary beneficiary of OWN as Discovery obtained control of the Board of Directors and operational rights that significantly impact the economic performance of the business such as programming and marketing, and selection of key personnel. As a result, the accounting for OWN was changed from an equity method investment to a consolidated subsidiary. As the primary beneficiary, Discovery includes OWN's assets, liabilities and results of operations in the Company's consolidated financial statements. As of June 30, 2018 , the carrying amounts of assets and liabilities of the consolidated VIE were $740 million and $276 million , respectively. The Company applied the acquisition method of accounting to OWN’s business, whereby the excess of the fair value of the business over the fair value of identifiable net assets was allocated to goodwill. The goodwill reflects the workforce and synergies expected from broader exposure to the self-discovery and self-improvement entertainment sector. The goodwill recorded as part of this acquisition is included in the U.S. Network reportable segment and is not amortizable for tax purposes. Intangible assets consist of advertiser backlog, advertiser relationships and affiliate relationships with a weighted average estimated useful life of 9 years. The preliminary opening balance sheet is subject to adjustment based on final assessment of the fair values of contingent liabilities. The Company used DCF analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation. The fair value of intangibles was determined using an income approach based on the excess earnings method. For the fair value estimates, the Company used: (i) projected discounted cash flows, (ii) historical and projected financial information, (iii) synergies including cost savings and (iv) attrition rates, as relevant, that market participants would consider when estimating fair values. The Company will reflect measurement period adjustments, if any, in the period in which the adjustment occurs. The preliminary fair value of assets acquired and liabilities assumed, as well as a reconciliation to cash consideration transferred is presented in the table below (in millions). Preliminary November 30, 2017 Intangible assets $ 295 Content rights 176 Accounts receivable 84 Other assets 26 Other liabilities (230 ) Net assets acquired $ 351 Goodwill 136 Remeasurement gain on previously held equity interest (33 ) Carrying value of previously held equity interest (329 ) Redeemable noncontrolling interest (55 ) Cash consideration transferred $ 70 Harpo has the right to require the Company to purchase its remaining noncontrolling interest in OWN during 90-day windows beginning on July 1, 2018 and every two and half years thereafter through January 1, 2026 . As Harpo’s put right is outside the Company's control, Harpo’s noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. (See Note 8.) As of the issuance date of these financial statements, Harpo has not exercised its put right. The Enthusiast Network, Inc. On September 25, 2017 , the Company contributed its linear cable network focused on cars and motor sports, Velocity, to a new joint venture Motor Trend Group, LLC ("MTG") formally VTEN with GoldenTree Asset Management L.P. ("GoldenTree"). GoldenTree's contributions to the joint venture included businesses from The Enthusiast Network, Inc. ("TEN"), primarily MotorTrend.com, the Motor Trend YouTube channel and the Motor Trend OnDemand OTT service. TEN did not contribute its print businesses to the joint venture. The joint venture has a portfolio of digital content, social groups, live events and original content focused on the automotive audience. In exchange for their contributions, Discovery and GoldenTree received 67.5% and 32.5% ownership of the new joint venture, respectively. Upon the closing of the transaction, Discovery consolidated the joint venture under the voting interest consolidation model. As the Company controlled Velocity and continues to control Velocity after the transaction, the change in the value of the Company's ownership interest was accounted for as an equity transaction and no gain or loss was recognized in the Company's consolidated statements of operations, but was reflected as a component of additional paid-in capital in the consolidated statement of equity. The Company applied the acquisition method of accounting to TEN's contributed businesses, whereby the excess of the fair value of the contributed business over the fair value of identifiable net assets was allocated to goodwill. The goodwill reflects the workforce and synergies expected from broader exposure to the automotive entertainment sector. The goodwill recorded as part of this acquisition is included in the U.S. Network reportable segment and is not amortizable for tax purposes. Intangible assets primarily consist of trade names, licensing agreements and customer relationships with a weighted average estimated useful life of 16 years . The Company used DCF analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation. The fair value of the assets acquired and liabilities assumed is presented in the table below (in millions). Preliminary September 25, 2017 Measurement Period Adjustments Final September 25, 2017 Goodwill $ 59 $ 16 $ 75 Intangible assets 71 (18 ) 53 Property plant and equipment, net 16 1 17 Other assets acquired 6 — 6 Liabilities assumed (8 ) 1 (7 ) Net assets acquired $ 144 $ — $ 144 Discovery has a fair value call right exercisable during 30-day windows beginning on each of March 25, 2021 , September 25, 2022 and March 25, 2024 , that requires Discovery to either purchase all of GoldenTree's noncontrolling 32.5% interest in the joint venture at fair value or participate in an initial public offering for the joint venture. GoldenTree's 32.5% noncontrolling interest in the joint venture is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. The opening balance sheet value of redeemable noncontrolling interest recognized upon closing was $82 million based on GoldenTree's ownership interest in the book value of Velocity and fair value of GoldenTree's contribution. The balance was subsequently increased by $38 million to adjust the redemption value to fair value of $120 million . (See Note 8.) Other On March 2, 2018 , the Company acquired a sports broadcaster in Turkey for $5 million . On September 1, 2017 , the Company exercised its call right for the remaining outstanding equity in an equity method investment in a FTA company in Poland for $4 million . The operations of these entities were consolidated upon their acquisition dates. Pro Forma Financial Information The following unaudited pro forma information has been presented as if the acquisition of Scripps Networks occurred on January 1, 2017 and the OWN and MTG transactions occurred on January 1, 2016 . The information is based on the historical results of operations of the acquired businesses, adjusted for: 1. The allocation of purchase price and related adjustments, including adjustments to amortization expense related to the fair value of intangible assets acquired and the recognition of the noncontrolling interests; 2. Impacts of debt financing, including interest for debt issued and amortization associated with the fair value adjustments of debt assumed; 3. The exclusion of acquisition-related costs incurred during the six months ended June 30, 2018 and allocation of all acquisition-related costs to the six months ended June 30, 2017 (no adjustments required for the three months ended June 30, 2018 or 2017 ). 4. Associated tax-related impacts of adjustments; and 5. Changes to align accounting policies The pro forma results do not necessarily represent what would have occurred if the transactions had taken place on January 1, 2017 for Scripps Networks or January 1, 2016 for OWN or MTG, nor do they represent the results that may occur in the future. The pro forma adjustments were based on available information and upon assumptions that the Company believes are reasonable to reflect the impact of these acquisitions on the Company's historical financial information on a supplemental pro forma basis (in millions). The following table presents the Company's pro forma combined revenues and net income (in millions, except per share value). Three Months Ended Six Months Ended June 30, 2018 2017 2018 2017 Revenues $ 2,845 $ 2,769 $ 5,774 $ 5,338 Net income available to Discovery, Inc. 260 424 348 583 Net income per share - basic 0.36 0.59 0.48 0.81 Net income per share - diluted 0.36 0.59 0.48 0.81 Impact of Business Combinations The operations of each of the business combinations discussed above were included in the consolidated financial statements as of each of their respective acquisition dates. The following table presents their revenue and earnings as reported within the consolidated financial statements (in millions). Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Revenues: Distribution $ 286 $ 394 Advertising 742 986 Other 38 66 Total revenues $ 1,066 $ 1,446 Net income available to Discovery, Inc. $ 78 $ 28 Dispositions Education Business On April 30, 2018 , the Company sold an 88% controlling equity stake in its Education Business to Francisco Partners for a sale price of $113 million . The Company recorded a gain of $84 million based on net assets disposed of $44 million , including $40 million of goodwill. The impact of the Education Business on the Company's income before income taxes was a loss of $5 million and $6 million for the three and six months ended June 30, 2018 , respectively. Discovery retained a 12% ownership interest in the Education Business, which is accounted for as an equity method investment. (See Note 3.) Discovery has long-term trade name license agreements with the Education Business that are royalty arrangements at fair value. Raw and Betty Studios, LLC On April 28, 2017 , the Company sold Raw and Betty to All3Media. All3Media is a U.K. based television, film and digital production and distribution company. The Company owns 50% of All3Media and accounts for its investment in All3Media under the equity method of accounting. The Company recorded a loss of $4 million for the disposition of these businesses for the three and six months ended June 30, 2017 . The loss on disposition of Raw and Betty resulted from the disposition of net assets of $38 million , including $30 million of goodwill. The impact to the Company's income before income taxes for Raw and Betty through the date of sale were losses of $3 million and $4 million for the three and six months ended June 30, 2017 , respectively. Raw and Betty were components of the studios operating segment reported with Education and Other. The Company determined that these disposals did not meet the definition of a discontinued operation because they do not represent a strategic shift that has a significant impact on the Company's operations and consolidated financial results. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Investments | INVESTMENTS The Company’s investments consisted of the following (in millions). Category Balance Sheet Location June 30, 2018 December 31, 2017 Time deposits Cash and cash equivalents $ — $ 1,305 Trading securities: Money market funds Cash and cash equivalents 31 2,707 Mutual funds Prepaid and other current assets 37 182 Mutual funds Other noncurrent assets 198 — Equity method investments: Equity investments Equity method investment 927 335 Note receivable Equity method investment 96 — Equity Investments: Common stock investments with readily determinable fair values Other noncurrent assets 121 164 Equity investments without readily determinable fair value Other noncurrent assets 384 295 Total investments $ 1,794 $ 4,988 Money Market Funds, Time Deposits and U.S. Treasury Securities During 2017 , the Company issued $6.8 billion in senior notes to fund the March 6, 2018 acquisition of Scripps Networks. (See Note 2 and Note 6.) A portion of the proceeds were invested in various short-term investments prior to the acquisition of Scripps Networks and were classified as cash and cash equivalents on the consolidated balance sheet. As of June 30, 2018 , the decrease in these funds is the result of funding the acquisition of Scripps Networks. Mutual Funds Trading securities include investments in mutual funds held in separate trusts, which are owned as part of the Company’s supplemental retirement plans. (See Note 4.) Equity Method Investments The Company makes investments that support its underlying business strategy and enable it to enter new markets and develop programming. Certain of the Company's equity method investments are VIEs, for which the Company is not the primary beneficiary. As of June 30, 2018 , the Company’s maximum exposure for all its unconsolidated VIEs including the investment carrying values, unfunded contractual commitments, and guarantees made on behalf of VIEs was approximately $501 million . The Company's maximum estimated exposure excludes the non-contractual future funding of VIEs. The aggregate carrying values of these VIE investments were $458 million and $181 million as of June 30, 2018 and December 31, 2017 , respectively. The Company recognized its portion of VIE operating results with losses of $39 million and $35 million for the three months ended June 30, 2018 and 2017 , respectively, and net losses generated by VIEs of $50 million and $78 million for the six months ended June 30, 2018 and 2017 . UKTV In connection with the acquisition of Scripps Networks, the Company acquired a 50% ownership interest in UKTV, a British multi-channel broadcaster jointly owned with BBC Studios (“BBC”). UKTV was formed on March 26, 1992 , through a joint venture arrangement between BBC and Virgin Media Inc. ("VMED"). On August 11, 2011 , Scripps Networks acquired VMED's 50% equity interest in UKTV along with a note receivable for debt instruments provided by VMED to UKTV. The Company has determined that UKTV is a VIE as the entity is unable to fund its activities without additional subordinated financial support provided by the note receivable. While the Company and BBC have equal voting rights in the management committee, the governing body of UKTV, power is not shared because BBC holds operational rights related to programming and creative development that significantly impact UKTV’s economic performance. Therefore, Discovery is not the primary beneficiary. The Company determined that its 50% equity interest in UKTV gives the Company the ability to exercise significant influence over the entity's operating and financial policies. Accordingly, the Company accounts for its investment in UKTV using the equity method. As of June 30, 2018 , the Company’s investment in UKTV totaled $309 million , including a note receivable of $96 million . nC+ In connection with the acquisition of Scripps Networks, the Company acquired a 32% ownership interest in nC+, a Polish satellite distributor of television content. nC+ is controlled by Group Canal+ S.A, a French broadcaster. The Company applies the equity method of accounting to its 32% investment in nC+ ordinary shares, which provide the ability to exercise significant influence over the operating and financial policies of nC+. The Company's investment in nC+ totaled $217 million as of June 30, 2018 . Renewable Energy Investments During the six months ended June 30, 2018 and 2017 , the Company invested $17 million and $196 million in limited liability companies that sponsor renewable energy projects related to solar energy, respectively. The Company expects these investments to result in tax benefits that reduce the Company's future tax liability, and cash flows from the operations of the investees. These investments are considered VIEs of the Company. The Company accounts for these investments under the equity method of accounting. While the Company possesses rights that allow it to exercise significant influence over the investments, the Company does not have the power to direct the activities that will most significantly impact their economic performance, such as the investee's ability to obtain sufficient customers or control solar panel assets. Once a stipulated return on investment is earned by the Company, the investment allocations to the Company are significantly reduced. Accordingly, the Company applies the Hypothetical Liquidation at Book Value ("HLBV") methodology for allocating earnings, which is a generally accepted method under the equity method of accounting when a substantive profit sharing arrangement exists. The following table presents renewable energy investments losses and associated tax benefits (in millions). Consolidated Statements of Operations Classification Three Months Ended June 30, Six Months Ended June 30, Renewable Energy Investments 2018 2017 2018 2017 Loss on renewable energy investments Loss from equity investees, net $ (8 ) $ (43 ) $ (16 ) $ (126 ) Tax benefit Equity passive loss Income tax expense $ 2 $ 15 $ 4 $ 46 Investment tax credits Income tax expense 3 41 3 66 Total tax benefit $ 5 $ 56 $ 7 $ 112 The Company accounts for investment tax credits utilizing the flow through method. As of June 30, 2018 and December 31, 2017 , the Company's carrying value of renewable energy investments was $94 million and $98 million , respectively. The Company has $4 million of future funding commitments for these investments as of June 30, 2018 , which are cancelable under limited circumstances. The Company has concluded that losses incurred on these investments to-date are not indicative of an other-than-temporary impairment due to the nature of these investments. Losses in the early stages of investments in companies that sponsor renewable energy projects are not uncommon, and the Company expects improved performance from these investments in future periods. Other Equity Method Investments At June 30, 2018 and December 31, 2017 , the Company's other equity method investments included production companies such as All3Media, a Russian cable television business, Mega TV in Chile and certain joint ventures in Canada. Other equity method investments acquired in conjunction with the acquisition of Scripps Networks include joint ventures in Canada, and HGTV and Food Network Magazines. The Company recorded an impairment loss of $19 million for the three months ended June 30, 2018 and $24 million for the six months ended June 30, 2018 because the carrying amount of certain investments was not recoverable. The impairment loss is reflected as a component of loss from equity investees on the Company's consolidated statement of operations. Investor Basis Differential With the exception of the OWN investment prior to the Company's November 30, 2017 consolidation (see Note 2), UKTV, nC+ and certain investments in renewable energy projects for which the Company uses the HLBV methodology for allocating earnings, the carrying values of the Company’s remaining equity method investments are consistent with its ownership in the underlying net assets of the investees. A portion of the purchase prices associated with these investments was attributed to amortizable intangible assets, which are included in their carrying values. Earnings from our equity investees were reduced by the amortization of these intangibles of $13 million during the period from March 6, 2018 to June 30, 2018 . Amortization that reduces the Company's equity in earnings of equity method investees for future periods is expected to be approximately $348 million . Common Stock Investments with Readily Determinable Fair Value The Company owns 5 million shares of common stock, or approximately 3% , of Lions Gate Entertainment Corp. ("Lionsgate"), an entertainment company. Lionsgate operates in the motion picture production and distribution, television programming and syndication, home entertainment and digital distribution business. Upon the adoption of ASU 2016-01, the shares are measured at fair value, with realized gains and losses recorded in other expense, net as the shares have a readily determinable fair value and the Company has the intent to retain the investment. The accumulated amounts associated with the components of the Company's common stock investments with readily determinable fair values, which are included in other non-current assets, are summarized in the table below (in millions). June 30, 2018 December 31, 2017 Cost $ 195 $ 195 Accumulated change in the value of: Equity securities recognized in other expense, net (44 ) (1 ) Unhedged equity securities recorded in other comprehensive income (a) — 32 Reclassification of accumulated other comprehensive income to retained earnings (a) 32 — Other-than-temporary impairment (62 ) (62 ) Carrying value $ 121 $ 164 (a) As of January 1, 2018 , upon adoption of ASU 2016-01, the Company recorded a transition adjustment to reclassify accumulated other comprehensive income associated with Lionsgate shares in the amount of $32 million pre-tax ( $26 million , net of tax) to retained earnings. Previously, amounts were recorded as a component of other comprehensive income. The Company hedged 50% of the Lionsgate shares with an equity collar (the “Lionsgate Collar”) and pledged those shares as collateral to the derivative counterparty. Prior to adoption of ASU 2016-01, when the share price of Lionsgate was within the boundaries of the collar and the hedge had no intrinsic value, the Company recorded the gains or losses on the Lionsgate shares as a component of other comprehensive (loss) income . When the share price of the Lionsgate shares was outside the boundaries of the collar and the hedge had intrinsic value, the Company recorded the gains or losses resulting from a change in the fair value of the hedged portion of Lionsgate shares that correspond to the change in intrinsic value of the hedge as a component of other expense, net . Upon adoption of ASU 2016-01, the Lionsgate Collar no longer receives the hedge accounting designation and all changes to the fair value of the Lionsgate Collar are reflected in the financial statements as gains and losses as a component of other expense, net on the consolidated statements of operations. (See Note 1, Note 4 and Note 7.) In 2016 , the Company determined that the decline in value of equity securities related to its investment in Lionsgate was other-than-temporary in nature and, as such, the cost basis was adjusted to fair value. The impairment determination was based on the sustained decline in the stock price of Lionsgate in relation to the purchase price and the prolonged length of time the fair value of the investment had been less than the carrying value. Based on the other-than-temporary impairment determination, unrealized pre-tax losses of $62 million previously recorded as a component of other comprehensive (loss) income were recognized as an impairment charge that was included as a component of other expense, net for the quarter ended September 30, 2016 . Equity investments without readily determinable fair values assessed under the measurement alternative The Company's equity investments without readily determinable fair values assessed under the measurement alternative as of June 30, 2018 primarily include its 42% minority interest in Group Nine Media recorded at $212 million . Discovery has significant influence through its voting rights in the preferred stock of Group Nine Media, however, this ownership interest has liquidation preferences that do not allow the investment to meet the definition of in-substance common stock. The Company accounts for its ownership interest in Group Nine Media as an equity investment without readily determinable fair values assessed under the measurement alternative. The Company also has similar investments in an educational website, an electric car racing series and certain investments to enhance the Company's digital distribution strategies, such as a $35 million investment in Refinery29. The Company completed its quarterly qualitative assessment and concluded that its equity investments without readily determinable fair values had no indicators that a change in fair value had taken place as of June 30, 2018 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified in the following three categories: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Valuations derived from techniques in which one or more significant inputs are unobservable. The tables below present assets and liabilities measured at fair value on a recurring basis (in millions). June 30, 2018 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Trading securities: Money market funds Cash and cash equivalents $ 31 $ — $ — $ 31 Mutual funds Prepaid expenses and other current assets 37 — — 37 Mutual funds Other noncurrent assets 198 — — 198 Equity investments with readily determinable fair value: Common stock Other noncurrent assets 121 — — 121 Derivatives: Cash flow hedges: Foreign exchange Prepaid expenses and other current assets — 28 — 28 Net investment hedges: Cross-currency swaps Other noncurrent assets — 6 — 6 No hedging designation: (a) Equity (Lionsgate Collar) Other noncurrent assets — 24 — 24 Assets held for sale Assets held for sale — 68 — 68 Total $ 387 $ 126 $ — $ 513 Liabilities Deferred compensation plan Accrued liabilities $ 37 $ — $ — $ 37 Deferred compensation plan Other noncurrent liabilities 208 — — $ 208 Derivatives: Cash flow hedges: Foreign exchange Accrued liabilities — 3 — 3 Net investment hedges: Cross-currency swaps Accrued liabilities — 17 — 17 Cross-currency swaps Other noncurrent liabilities — 98 — 98 No hedging designation: Cross-currency swaps Accrued liabilities — 1 — 1 Cross-currency swaps Other noncurrent liabilities — 3 — 3 Total $ 245 $ 122 $ — $ 367 December 31, 2017 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 1,305 $ — $ 1,305 Trading securities: Money market funds Cash and cash equivalents 2,707 — — 2,707 Mutual funds Prepaid expenses and other current assets 182 — — 182 Equity investments with readily determinable fair value: (a) Common stock Other noncurrent assets 82 — — 82 Common stock - pledged Other noncurrent assets 82 — — 82 Derivatives: Cash flow hedges: Foreign exchange Prepaid expenses and other current assets — 7 — 7 Net investment hedges: Cross-currency swaps Other noncurrent assets — 3 — 3 Foreign exchange Prepaid expenses and other current assets — 2 — 2 Fair value hedges: (a) Equity (Lionsgate Collar) Other noncurrent assets — 13 — 13 Total $ 3,053 $ 1,330 $ — $ 4,383 Liabilities Deferred compensation plan Accrued liabilities $ 182 $ — $ — $ 182 Derivatives: Cash flow hedges: Foreign exchange Accrued liabilities — 12 — 12 Net investment hedges: Cross-currency swaps Accrued liabilities — 13 — 13 Cross-currency swaps Other noncurrent liabilities 98 98 Foreign exchange Accrued liabilities — 8 — 8 No hedging designation: Credit contracts Other noncurrent liabilities — 1 — 1 Cross-currency swaps Other noncurrent liabilities — 6 — 6 Total $ 182 $ 138 $ — $ 320 (a) Prior to January 1, 2018 , and the adoption of ASU 2016-01, the Company applied hedge accounting to the Lionsgate Collar. (See Note 1 and Note 7.) Cash obtained as a result of the issuance of senior notes to fund a portion of the purchase price of the acquisition of Scripps Networks was invested in money market funds, time deposit accounts, U.S. Treasury securities and highly liquid short-term instruments that qualify as cash and cash equivalents. Any accrued interest received after maturity was reinvested into additional short-term instruments. (See Note 3.) The Company values cash and cash equivalents using quoted market prices. As of June 30, 2018 , following the acquisition of Scripps Networks, the Company no longer holds these investments as these investments were liquidated and utilized in the acquisition of Scripps Networks. The fair value of Level 1 trading securities was determined by reference to the quoted market price per share in active markets multiplied by the number of shares held without consideration of transaction costs. (See Note 3.) The fair value of the deferred compensation plan liability was determined based on the fair value of the related investments elected by employees. Changes in the fair value of the investments are offset by changes in the fair value of the deferred compensation obligation. (See Note 3.) Common stock investments with readily determinable fair values are recorded by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. (See Note 3.) As of January 1, 2018 , the Company adopted ASU 2016-01, which eliminates the AFS classification. (See Note 1 and Note 3.) Derivative financial instruments are comprised of foreign exchange, interest rate, credit and equity contracts. (See Note 7.) The fair value of Level 2 derivative financial instruments was determined using a market-based approach. On January 9, 2018 , the Company announced plans to relocate its global headquarters from Silver Spring, Maryland ("the Silver Spring property") to New York City in 2019 . In June 2018 , the Company entered into a lease agreement for space in New York, which will serve as Discovery's new corporate headquarters. As of June 30, 2018 , the Company determined that the Silver Spring property, which is reflected as a component of corporate and inter-segment eliminations for segment reporting, met the held for sale criteria as defined by GAAP and has been separately stated on the Company's consolidated balance sheet as a noncurrent asset at its estimated fair value less cost to sell. As a result of the change in classification, the Company recorded an impairment loss of $12 million for the three and six months ended June 30, 2018 , which is reflected as a component of depreciation and amortization. The fair value was determined using a market approach based on a non-binding purchase and sale agreement to sell property and was classified as a Level 2 measurement. In addition to the financial instruments listed in the tables above, the Company holds other financial instruments, including cash deposits, accounts receivable, accounts payable, borrowings under the revolving credit facility and senior notes. The carrying values for such financial instruments, other than the senior notes, each approximated their fair values as of June 30, 2018 and December 31, 2017 . The estimated fair value of the Company’s outstanding senior notes using quoted prices from over the counter markets, considered Level 2 inputs, was $16.6 billion and $14.8 billion as of June 30, 2018 and December 31, 2017 , respectively. |
Content Rights
Content Rights | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Content Rights | CONTENT RIGHTS The table below presents the components of content rights (in millions). June 30, 2018 December 31, 2017 Produced content rights: Completed $ 5,264 $ 4,355 In-production 750 442 Coproduced content rights: Completed 772 745 In-production 71 27 Licensed content rights: Acquired 972 1,070 Prepaid (a) 167 181 Content rights, at cost 7,996 6,820 Accumulated content rights expense (4,380 ) (4,197 ) Total content rights, net 3,616 2,623 Current portion (358 ) (410 ) Noncurrent portion $ 3,258 $ 2,213 (a) Prepaid licensed content rights includes payments for rights to the Olympic games of $52 million that are reflected as noncurrent content rights and $83 million that are reflected as current content rights assets on the consolidated balance sheet as of June 30, 2018 and December 31, 2017 , respectively. Content expense consisted of the following (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Content amortization $ 728 $ 446 $ 1,478 $ 901 Other production charges 112 76 272 141 Content impairments 104 6 182 9 Total content expense $ 944 $ 528 $ 1,932 $ 1,051 Content expense is generally a component of costs of revenues on the consolidated statements of operations. Content impairments for 2018 were mainly due to the strategic realignment of content following the acquisition of Scripps Networks and are primarily reflected in restructuring and other charges. For the three and six months ended June 30, 2018 , content impairments of $100 million and $177 million , respectively, were due to restructuring events following the acquisition of Scripps Networks. No content impairments were recorded as a component of restructuring and other during the three or six months ended June 30, 2017 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The table below presents the components of outstanding debt (in millions). June 30, 2018 December 31, 2017 5.625% Senior notes, semi-annual interest, due August 2019 $ 411 $ 411 2.200% Senior notes, semi-annual interest, due September 2019 500 500 Floating rate notes, quarterly interest, due September 2019 400 400 2.750% Senior notes, semi-annual interest, due November 2019 500 — 2.800% Senior notes, semi-annual interest, due June 2020 600 — 5.050% Senior notes, semi-annual interest, due June 2020 789 789 4.375% Senior notes, semi-annual interest, due June 2021 650 650 2.375% Senior notes, euro denominated, annual interest, due March 2022 347 358 3.300% Senior notes, semi-annual interest, due May 2022 500 500 3.500% Senior notes, semi-annual interest, due June 2022 400 — 2.950% Senior notes, semi-annual interest, due March 2023 1,200 1,200 3.250% Senior notes, semi-annual interest, due April 2023 350 350 3.800% Senior notes, semi-annual interest, due March 2024 450 450 2.500% Senior notes, sterling denominated, annual interest, due September 2024 522 538 3.900% Senior notes, semi-annual interest, due November 2024 500 — 3.450% Senior notes, semi-annual interest, due March 2025 300 300 3.950% Senior notes, semi-annual interest, due June 2025 500 — 4.900% Senior notes, semi-annual interest, due March 2026 700 700 1.900% Senior notes, euro denominated, annual interest, due March 2027 694 717 3.950% Senior notes, semi-annual interest, due March 2028 1,700 1,700 5.000% Senior notes, semi-annual interest, due September 2037 1,250 1,250 6.350% Senior notes, semi-annual interest, due June 2040 850 850 4.950% Senior notes, semi-annual interest, due May 2042 500 500 4.875% Senior notes, semi-annual interest, due April 2043 850 850 5.200% Senior notes, semi-annual interest, due September 2047 1,250 1,250 Term loans 500 — Revolving credit facility 375 425 Commercial paper 579 — Program financing line of credit 23 — Capital lease obligations 279 225 Total debt 18,469 14,913 Unamortized discount, premium and debt issuance costs, net (140 ) (128 ) Debt, net of unamortized discount, premium and debt issuance costs 18,329 14,785 Current portion of debt (646 ) (30 ) Noncurrent portion of debt $ 17,683 $ 14,755 Senior Notes In connection with the acquisition of Scripps Networks on March 6, 2018 , the Company assumed $2.5 billion aggregate principal amount of Scripps Networks 2.750% senior notes due 2019 , 2.800% senior notes due 2020 , 3.500% senior notes due 2022 , 3.900% senior notes due 2024 and 3.950% senior notes due 2025 (the "Scripps Networks Senior Notes"). As part of accounting for the acquisition of Scripps Networks, the Scripps Networks Senior Notes were adjusted to fair value using observable trades as of the acquisition date. (See Note 2.) The fair value adjustment resulted in an opening balance sheet carrying value that is $19 million less than the face amount of the senior notes. As of June 30, 2018 , fair value adjustments of $1 million were amortized to interest expense. On April 3, 2018 , pursuant to the Offering Memorandum and Consent Solicitation Statement to Exchange dated March 5, 2018 , Discovery Communications, LLC ("DCL"), a wholly-owned subsidiary of the Company, completed the exchange of $2.3 billion aggregate principal amount of Scripps Networks Senior Notes, for $2.3 billion aggregate principal amount of DCL's 2.750% senior notes due 2019 (the "2019 Notes"), 2.800% senior notes due 2020 (the "2020 Notes"), 3.500% senior notes due 2022 (the "2022 Notes"), 3.900% senior notes due 2024 (the "2024 Notes") and 3.950% senior notes due 2025 (the "2025 Notes"). Interest on the 2019 Notes and the 2024 Notes is payable semi-annually in arrears on May 15 and November 15 of each year beginning on May 15, 2018 . Interest on the 2020 Notes, the 2022 Notes and the 2025 Notes is payable semi-annually in arrears on June 15 and December 15 of each year commencing on June 15, 2018 . The exchange was accounted for as a debt modification and, as a result, third-party issuance costs were expensed as incurred. On September 21, 2017 , DCL issued $500 million principal amount of 2.200% senior notes due 2019 , $1.20 billion principal amount of 2.950% senior notes due 2023 , $1.70 billion principal amount of 3.950% senior notes due 2028 , $1.25 billion principal amount of 5.000% senior notes due 2037 , $1.25 billion principal amount of 5.200% senior notes due 2047 (collectively, the “Senior Fixed Rate Notes”) and $400 million principal amount of floating rate senior notes due 2019 (the “Senior Floating Rate Notes” and, together with the Senior Fixed Rate Notes, the “USD Notes”). Interest on the Senior Fixed Rate Notes is payable on March 20 and September 20 of each year. Interest on the Senior Floating Rate Notes is payable on March 20 , June 20 , September 20 and December 20 of each year. The USD Notes are fully and unconditionally guaranteed by the Company. On September 21, 2017, DC L also issued £400 million principal amount ( $540 million at issuance based on the exchange rate of $1.35 per pound at September 21, 2017 ) of 2.500% senior notes due 2024 (the “Sterling Notes”). Interest on the Sterling Notes is payable on September 20 of each year, beginning September 20, 2018 . The proceeds received by DCL from the USD Notes and the Sterling Notes were net of a $11 million issuance discount and $57 million of debt issuance costs. On March 13, 2017 , DCL issued $ 450 million principal amount of 3.80% senior notes due March 13, 2024 (the " 2017 USD Notes") and an additional $200 million principal amount of its existing 4.90% senior notes due March 11, 2026 (the " 2016 USD Notes"). Interest on the 2017 USD Notes is payable semi-annually on March 13 and September 13 of each year. Interest on the 2016 USD Notes is payable semi-annually on March 11 and September 11 of each year. The proceeds received by DCL from the 2017 USD Notes were net of a $1 million issuance discount and $4 million of debt issuance costs. The proceeds received by DCL from the 2016 USD Notes included a $10 million issuance premium and were net of $2 million of debt issuance costs. DCL used the proceeds from the offerings of the 2017 USD Notes and the 2016 USD Notes to repurchase $600 million aggregate principal amount of DCL's 5.050% senior notes due 2020 and 5.625% senior notes due 2019 in a cash tender offer. The repurchase resulted in a pretax loss on extinguishment of debt of $54 million for the three months ended March 31, 2017 , which is presented as a separate line item on the Company's consolidated statements of operations and recognized as a component of financing cash outflows on the consolidated statements of cash flows. The loss included $50 million for premiums to par value, $2 million of non-cash write-offs of unamortized deferred financing costs, $1 million for the write-off of the original issue discount of these senior notes and $1 million accrued for other third-party fees. As of June 30, 2018 , all senior notes are fully and unconditionally guaranteed by the Company and Scripps Networks, except for $243 million of un-exchanged Scripps Networks Senior Notes acquired in conjunction with the acquisition of Scripps Networks. (See Note 20.) Term Loans On August 11, 2017 , DCL entered into a three -year delayed draw tranche and a five -year delayed draw tranche unsecured term loan credit facility (the "Term Loans"), each with a principal amount of up to $1 billion . The term of each delayed draw loan commenced on March 6, 2018 when Discovery used these funds to finance a portion of the Scripps Networks acquisition. The Term Loans' interest rates are based, at the Company's option, on either adjusted LIBOR plus a margin, or an alternate base rate plus a margin. The Company paid a commitment fee of 20 basis points per annum for each loan, based on its then-current credit rating, beginning September 28, 2017 through March 6, 2018 . As of June 30, 2018 , the Company had an outstanding balance of $500 million on the three -year tranche. The Company used cash from operations and borrowings under the commercial paper program to pay down a portion of the outstanding Term Loan borrowings. Revolving Credit Facility On August 11, 2017 , DCL amended its $2.0 billion revolving credit facility to allow DCL and certain designated foreign subsidiaries of DCL to borrow up to $2.5 billion , including a $100 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for Euro-denominated swing line loans. Borrowing capacity under this credit facility is reduced by any outstanding borrowings under the commercial paper program. The revolving credit facility agreement amendment extends the maturity date from February 4, 2021 to August 11, 2022 . The original agreement includes the option for up to two additional 364 -day renewal periods. The credit agreement governing the revolving credit facility contains customary representations, warranties and events of default, as well as affirmative and negative covenants. In addition to the change in the revolver's capacity on August 11, 2017 , the financial covenants were modified to increase the maximum consolidated leverage ratio financial covenant to 5.50 to 1.00 , with step-downs to 5.00 to 1.00 and to 4.50 to 1.00 , one year and two years after the closing of the Scripps Networks acquisition, respectively. As of June 30, 2018 , the Company's subsidiary, DCL, was in compliance with all covenants and there were no events of default under the revolving credit facility. As of June 30, 2018 , the Company had outstanding U.S. dollar-denominated borrowings under the revolving credit facility of $375 million at a weighted average interest rate of 3.33% . As of December 31, 2017 , the Company had outstanding U.S. dollar-denominated borrowings under the revolving credit facility of $425 million at a weighted average interest rate of 2.69% . The interest rate on borrowings under the revolving credit facility is variable based on DCL's then-current credit ratings for its publicly traded debt and changes in financial index rates. For U.S. dollar-denominated borrowings, the interest rate is based, at the Company's option, on either adjusted LIBOR plus a margin, or an alternate base rate plus a margin. The Company may also borrow in foreign currencies under the credit facility, at an interest rate based on adjusted LIBOR, plus a margin. The current margins are 1.30% and 0.30% , respectively, per annum for adjusted LIBOR and alternate base rate borrowings. The Company had no borrowings under the credit facility in foreign currencies as of June 30, 2018 or December 31, 2017 . A monthly facility fee is charged based on the total capacity of the facility, and interest is charged based on the amount borrowed on the facility. The current facility fee rate is 0.20% per annum and subject to change based on DCL's then-current credit ratings. All obligations of DCL and the other borrowers under the revolving credit facility are unsecured and are fully and unconditionally guaranteed by Discovery. Commercial Paper The Company's commercial paper program is supported by the revolving credit facility described above. Outstanding commercial paper borrowings were $579 million with a weighted average interest rate of approximately 2.70% as of June 30, 2018 . The Company had no outstanding borrowings as of December 31, 2017 . Program Financing Line of Credit On January 12, 2018 , the Company entered into a secured line of credit for an aggregate principal amount of $26 million to finance content production costs. Interest rates on this line of credit are based on the Company’s option to elect either an adjusted LIBOR or a variable prime rate. Interest on the outstanding balance is due quarterly commencing on October 15, 2018 with a final payment due on October 15, 2020 . As of June 30, 2018 , the Company has an outstanding balance of $23 million . |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to modify its exposure to market risks from changes in foreign currency exchange rates and interest rates. At the inception of a derivative contract, the Company designates the derivative as one of four types based on the Company's intentions and belief as to its likely effectiveness as a hedge. These four types are: (1) 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"), (2) a hedge of net investments in foreign operations ("net investment hedge"), (3) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), or (4) an instrument with no hedging designation. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. Unsettled derivative contracts are recorded at their gross fair values on the consolidated balance sheets. (See Note 4.) The portion of the fair value that represents cash flows occurring within one year are classified as current, and the portion related to cash flows occurring beyond one year are classified as noncurrent. Gains and losses on the effective portions of designated cash flow and net investment hedges are initially recognized as components of accumulated other comprehensive loss on the consolidated balance sheets and reclassified into the statements of operations in the same line item in which the hedged item is recorded and in the same period as the hedged item affects earnings. The ineffective portion of any previous gains and losses recorded in accumulated other comprehensive loss on the consolidated balance sheets are reclassified immediately to other expense, net on the consolidated statements of operations. The Company recorded gains and losses for instruments that receive no hedging designation, as a component of other expense, net on the consolidated statements of operations. The cash flows from the effective portion of derivative instruments used as hedges are classified in the consolidated statements of cash flows in the same section as the cash flows of the hedged item. Effective January 1, 2018 , upon adoption of ASU 2016-01, the Company no longer applies hedge accounting to the Lionsgate Collar. There is no change to the manner in which the Company accounts for the collar as movements in its fair value will continue to be recorded as a component of other expense, net on the consolidated statements of operations. (See Note 1 and Note 4.) The following table summarizes the impact of derivative financial instruments on the Company's consolidated balance sheets (in millions). There were no amounts eligible to be offset under master netting agreements as of June 30, 2018 and December 31, 2017 . June 30, 2018 December 31, 2017 Fair Value Fair Value Notional Prepaid expenses and other current assets Other non- current assets Accrued liabilities Other non- current liabilities Notional Prepaid expenses and other current assets Other non- current assets Accrued liabilities Other non- current liabilities Cash flow hedges: Foreign exchange $ 835 $ 28 $ — $ 3 $ — $ 817 $ 7 $ — $ 12 $ — Net investment hedges: (a) Cross-currency swaps 1,703 — 6 17 98 1,708 — 3 13 98 Foreign exchange — — — — — 303 2 — 8 — Fair value hedges: Equity (Lionsgate collar) (b) — — — — — 97 — 13 — — No hedging designation: Interest rate swaps 25 — — — — 25 — — — — Cross-currency swaps 64 — — 1 3 64 — — — 6 Equity (Lionsgate collar) (b) 97 — 24 — — — — — — — Credit contracts — — — — — 665 — — — 1 Total $ 28 $ 30 $ 21 $ 101 $ 9 $ 16 $ 33 $ 105 (a) Excludes £400 million of sterling notes ( $522 million equivalent at June 30, 2018 ) designated as a net investment hedge. (See Note 6.) (b) Upon adoption of ASU 2016-01 on January 1, 2018 , the Lionsgate Collar no longer receives the hedge accounting designation. (See Note 1 and Note 4.) The following table presents the pretax impact of derivatives designated as cash flow hedges on income and other comprehensive (loss) income (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Gains (losses) recognized in accumulated other comprehensive loss: Foreign exchange - derivative adjustments $ 39 $ (18 ) $ 29 $ (31 ) Gains (losses) reclassified into income from accumulated other comprehensive loss (effective portion): Foreign exchange - distribution revenue 3 (4 ) 3 (7 ) Foreign exchange - advertising revenue (2 ) (1 ) (1 ) (1 ) Foreign exchange - costs of revenues — — (4 ) 4 Interest rate - interest expense — — — (1 ) If current fair values of designated cash flow hedges as of June 30, 2018 remained static over the next twelve months, the Company would reclassify $22 million of net deferred gains from accumulated other comprehensive loss into income in the next twelve months. The following table presents the pretax impact of derivatives designated as net investment hedges on other comprehensive (loss) income (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Currency translation adjustments: Cross-currency swaps - changes in fair value $ 54 $ (39 ) $ (2 ) $ (48 ) Cross-currency swaps - interest settlements — — 7 5 Foreign exchange - changes in fair value — — (1 ) — Sterling Notes - changes in foreign exchange rates 41 — 16 — Total other comprehensive income (loss) $ 95 $ (39 ) $ 20 $ (43 ) The following table presents the pretax impact of derivatives designated as fair value hedges on income, including offsetting changes in fair value of the hedged items and amounts excluded from the assessment of effectiveness (in millions). Upon adoption of ASU 2016-01 on January 1, 2018 , the Company no longer designates any of its derivatives as fair value hedges. As a result, there was no activity related to derivatives designated as fair value hedges for the three and six months ended June 30, 2018 . There were no amounts of ineffectiveness recognized on fair value hedges for the three and six months ended June 30, 2017 . Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Gains on changes in fair value of hedged AFS $ 4 $ 4 Gains on changes in the intrinsic value of equity contracts (4 ) (4 ) Fair value of equity contracts excluded from effectiveness assessment 3 1 Total in other expense, net $ 3 $ 1 The following table presents the pretax impact of derivatives not designated as hedges and recognized in other expense, net in the consolidated statements of operations (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cross-currency swaps $ 4 $ (2 ) $ — $ (3 ) Credit contracts — — (1 ) — Equity 1 — 11 — Total in other expense, net $ 5 $ (2 ) $ 10 $ (3 ) |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | REDEEMABLE NONCONTROLLING INTERESTS The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Beginning balance $ 419 $ 249 $ 413 $ 243 Cash distributions to redeemable noncontrolling interests (19 ) (17 ) (21 ) (20 ) Comprehensive income adjustments: Net income attributable to redeemable noncontrolling interests 5 6 11 12 Other comprehensive income attributable to redeemable noncontrolling interests — — — 1 Currency translation on redemption values (1 ) (1 ) 1 — Retained earnings adjustments: Adjustments of redemption values to the floor 6 — 6 1 Ending balance $ 410 $ 237 $ 410 $ 237 Redeemable noncontrolling interests consist of the arrangements described below: In connection with its noncontrolling interest in OWN, Harpo has the right to require the Company to purchase its remaining noncontrolling interest at fair value during 90-day windows beginning on July 1, 2018 and every two and a half years thereafter through January 1, 2026. As of the issuance date of these financial statements, Harpo has not exercised its right to put. As Harpo’s put right is outside the control of the Company, Harpo’s noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. As of June 30, 2018 , the Company recorded $56 million for the redeemable noncontrolling interest in equity of OWN. (See Note 2.) In connection with the MTG joint venture between Discovery and GoldenTree created on September 25, 2017 , GoldenTree acquired a put right exercisable during 30-day windows beginning on each of March 25, 2021 , September 25, 2022 and March 25, 2024 , that requires Discovery to either purchase all of GoldenTree's noncontrolling 32.5% interest in the joint venture at fair value or participate in an initial public offering for the joint venture. As the put right is outside of the Company's control, GoldenTree's 32.5% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. As of June 30, 2018 , the Company recorded $121 million for the redeemable noncontrolling interest in equity of MTG. (See Note 2.) In connection with its noncontrolling interest in Discovery Family, Hasbro Inc. ("Hasbro") has the right to put the entirety of its remaining 40% interest in the Company to Discovery at any time during the one -year period beginning December 31, 2021 , or in the event a Discovery performance obligation related to Discovery Family is not met. Embedded in the redeemable noncontrolling interest is also a Discovery call right that is exercisable during the same one -year period beginning December 31, 2021 . Upon the exercise of the put or call options, the price to be paid for the redeemable noncontrolling interest is generally a function of the then-current fair market value of the redeemable noncontrolling interest, to which certain discounts and floor values may apply in specified situations depending upon the party exercising the put or call and the basis for the exercise of the put or call. As Hasbro's put right is outside the control of the Company, Hasbro's 40% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. As of June 30, 2018 , the Company recorded $206 million for the redeemable noncontrolling interest in equity of Discovery Family. In connection with its noncontrolling interest in Discovery Japan, Jupiter Telecommunications Co., Ltd ("J:COM") has the right to put all, but not less than all, of its 20% noncontrolling interest to Discovery at any time for cash. As amended, through January 10, 2019 , the redemption value is the January 10, 2013 , fair value denominated in Japanese yen; thereafter, as chosen by J:COM, the redemption value is the then-current fair value or the January 10, 2013 , fair value denominated in Japanese yen. As of June 30, 2018 , the Company recorded $27 million for the redeemable noncontrolling interest in equity of Discovery Japan. Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values remeasured at the period end foreign exchange rates (i.e., the "floor"). Adjustments to the carrying amount of redeemable noncontrolling interests to redemption value as a result of changes in exchange rates are reflected in currency translation adjustments, a component of other comprehensive (loss) income ; however, such currency translation adjustments to redemption value are allocated to Discovery stockholders only. Redeemable noncontrolling interest adjustments of redemption value to the floor are reflected in retained earnings. The adjustment of redemption value to the floor that reflects a redemption in excess of fair value is included as an adjustment to income from continuing operations available to Discovery, Inc. stockholders in the calculation of earnings per share. NONCONTROLLING INTEREST In conjunction with the acquisition of Scripps Networks, the Company acquired a controlling interest in the TV Food Network Partnership ("the Partnership"), which is jointly owned with Tribune Media Company (the "Tribune Company"). Food Network and Cooking Channel are operated and organized under the terms of the Partnership. The Company holds 80% of the voting interest and 68.7% of the economic interest in the Partnership. Under the terms of the Partnership, the Partnership has a dissolution date of December 31, 2020 . If the term of the Partnership is not extended prior to that date, the Partnership agreement permits the Company, as holder of 80% of the applicable votes, to reconstitute the Partnership and continue its business. If for some reason the Partnership is not continued, it will be required to limit its activities to winding up, settling debts, liquidating assets and distributing proceeds to the partners in proportion to their partnership interests. Ownership interests attributable to the Tribune Company are presented as noncontrolling interests on the Company's consolidated financial statements. Under the terms of the Partnership agreement, Tribune Company cannot force a redemption outside of the Company's control. As such, the noncontrolling interests in the Partnership are reflected as a component of permanent equity in the Company's consolidated financial statements. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity | EQUITY Common Stock Issued in Connection with Scripps Networks Acquisition On March 6, 2018 , the Company issued 139 million shares of Series C common stock as part of the consideration paid for the acquisition of Scripps Networks, inclusive of the conversion of 1 million Scripps Networks share-based compensation awards. (See Note 2.) Repurchase Programs Common Stock On August 3, 2010 , the Company implemented a stock repurchase program. Under the Company's stock repurchase program, management was authorized to purchase shares of the Company's common stock from time to time through open market purchases, privately negotiated transactions at prevailing prices, pursuant to one or more accelerated stock repurchase agreements, or other derivative arrangements as permitted by securities laws and other legal requirements, and subject to stock price, business and market conditions and other factors. The Company's authorization under the program expired on October 8, 2017 . All common stock repurchases, including prepaid common stock repurchase contracts, have been made through open market transactions and have been recorded as treasury stock on the consolidated balance sheet. As of June 30, 2018 , the Company had repurchased over the life of the program 3 million and 164 million shares of Series A and Series C common stock, respectively, for an aggregate purchase price of $171 million and $6.6 billion , respectively. The table below presents a summary of common stock repurchases (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Series C Common Stock: Shares repurchased — 9.1 — 14.3 Purchase price $ — $ 241 $ — $ 381 Convertible Preferred Stock and Preferred Stock Modification The Company has two series of preferred stock authorized, issued and outstanding as of June 30, 2018 : Series A-1 convertible preferred stock and Series C-1 convertible preferred stock. There are 8 million shares authorized for Series A-1 convertible preferred stock and 6 million shares authorized for Series C-1 convertible preferred stock. On August 7, 2017 , Discovery completed the transactions contemplated by the Exchange Agreement with Advance/Newhouse. Under the Exchange Agreement, Discovery issued a number of shares of newly designated Series A-1 and Series C-1 convertible preferred stock (collectively, the "New Preferred Stock") to Advance/Newhouse in exchange for all outstanding shares of Discovery Series A and Series C convertible participating preferred stock (the "Exchange"). The terms of the Exchange Agreement resulted in Advance/Newhouse's aggregate voting and economic rights before the exchange being equal to its aggregate voting and economic rights after the exchange. Immediately following the Exchange, Advance/Newhouse’s beneficial ownership of the aggregate number of shares of Discovery’s Series A common stock and Series C common stock into which the New Preferred Stock received by Advance/Newhouse in the Exchange are convertible, remained unchanged. The terms of the exchange agreement also provide that certain of the shares of Discovery Series C-1 convertible preferred stock received by Advance/Newhouse in the Exchange (including the Discovery Series C common stock into which such shares are convertible) are subject to transfer restrictions on the terms set forth in the Exchange Agreement. While subject to transfer restrictions, such shares may be pledged in certain bona fide financing transactions, but may not be pledged in connection with hedging or similar transactions. Prior to the Exchange each share of Series A preferred stock was convertible into one share of Series A common stock and one share of Series C common stock (referred to as the “embedded Series C common stock”). Through its ownership of the Series A convertible preferred stock, Advance/Newhouse had the right to elect three directors (the “preferred directors”) and maintained special voting rights on certain matters, including but not limited to blocking rights for material acquisitions, the issuance of debt securities and the issuance of equity securities (collectively, the “preferred rights”). Additionally, Advance/Newhouse was subject to certain transfer restrictions with respect to its governance rights. Prior to the Exchange, the Series C convertible preferred stock was considered the economic equivalent of Series C common stock. Following the Exchange, shares of Series A-1 preferred stock and Series C-1 preferred stock are convertible into Series A common stock and Series C common stock, respectively. The aforementioned preferred rights and transfer restrictions are retained as features of the Series A-1 preferred stock, and holders of Series A-1 preferred stock are now subject to a right of first offer in favor of Discovery should Advance/Newhouse desire to sell 80% or more of the Series A-1 shares in a “Permitted Transfer” (as defined in the Discovery charter). Following the Exchange, Series C-1 convertible preferred stock is considered the economic equivalent of Series C common stock and is subject to certain transfer restrictions. Discovery considers the Exchange of the Series A convertible preferred stock for Series A-1 convertible preferred stock and Series C-1 convertible preferred stock to be a modification to the conversion option of the Series A convertible preferred stock. Previously, conversion of Series A preferred stock required simultaneous conversion into Series A common stock and Series C common stock. The Exchange, however, allows for the independent conversion of the Series C-1 convertible preferred stock into Series C common stock without the conversion of Series A-1 convertible preferred stock. Advance/Newhouse’s aggregate voting, economic and preferred rights before the Exchange are equal to its aggregate voting, economic and preferred rights after the Exchange. As of June 30, 2018 , all outstanding shares of Series A-1 and Series C-1 convertible preferred stock were held by Advance/Newhouse. Consistent with the terms of the arrangement prior to the Exchange, holders of Series A-1 and Series C-1 convertible preferred stock have equal rights, powers and privileges, except as otherwise noted. Except for the election of common stock directors, the holders of Series A-1 convertible preferred stock are entitled to vote on matters to which holders of Series A and Series B common stock are entitled to vote, and holders of Series C-1 convertible preferred stock are entitled to vote on matters to which holders of Series C common stock, which is generally non-voting, are entitled to vote pursuant to Delaware law. Series A-1 convertible preferred stockholders vote on an as converted to common stock basis together with the Series A and Series B common stockholders as a single class on all matters except the election of directors. Additionally, through its ownership of the Series A-1 convertible preferred stock, Advance/Newhouse has special voting rights on certain matters and the right to elect three directors. Holders of the Company’s common stock are not entitled to vote in the election of such directors. Advance/Newhouse retains these rights so long as it or its permitted transferees own or have the right to vote such shares that equal at least 80% of the shares of Series A-1 convertible preferred stock issued to Advance/Newhouse in connection with the formation of Discovery plus any Series A-1 convertible preferred stock released from escrow, as may be adjusted for certain capital transactions. Subject to the prior preferences and other rights of any senior stock, holders of Series A-1 and Series C-1 convertible preferred stock will participate equally with common stockholders on an as converted to common stock basis in any cash dividends declared by the Board of Directors. In the event of a liquidation, dissolution or winding up of Discovery, after payment of Discovery’s debts and liabilities and subject to the prior payment with respect to any stock ranking senior to Series A-1 and Series C-1 convertible preferred stock, the holders of Series A-1 and Series C-1 convertible preferred stock will receive, before any payment or distribution is made to the holders of any common stock or other junior stock, an amount (in cash or property) equal to $0.01 per share. Following payment of such amount and the payment in full of all amounts owing to the holders of securities ranking senior to Discovery’s common stock, holders of Series A-1 and Series C-1 convertible preferred stock will share equally on an as converted to common stock basis with the holders of common stock with respect to any assets remaining for distribution to such holders. Preferred Stock Conversion and Repurchases Prior to the Exchange, the Company had an agreement with Advance/Newhouse to repurchase, on a quarterly basis, a number of shares of Series C convertible preferred stock convertible into Series C common stock based on the number of shares of Series C common stock purchased under the Company’s stock repurchase program during the then most recently completed fiscal quarter. The price paid per share is calculated as 99% of the average price paid for the Series C common shares repurchased by the Company during the applicable fiscal quarter multiplied by the Series C conversion rate. The Advance/Newhouse repurchases are made outside of the Company’s publicly announced common stock repurchase program. The repurchase transactions are recorded as a decrease in par value of preferred stock and retained earnings upon settlement as there is no remaining additional paid-in capital ("APIC") for this class of stock and the shares are retired upon repurchase. The Advance/Newhouse repurchase agreement was amended on August 7, 2017 to conform the terms of the previous agreement, as detailed above, to the conversion ratio of the newly issued Series C-1 convertible preferred stock. The table below presents a summary of Series C convertible preferred stock repurchases made under the repurchase agreement (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Series C convertible preferred stock: Shares repurchased — 1.1 — 2.3 Purchase price $ — $ 60 $ — $ 120 There were no repurchases of Series C-1 convertible preferred stock during 2018 and 2017 . Stock Repurchases As of June 30, 2018 , total shares repurchased, on a split-adjusted and as-converted basis, under these programs were 33% of the Company's outstanding shares on a fully-diluted basis since the repurchase programs were authorized. Common Stock Repurchase Contract On March 15, 2017 , the Company settled a December 15, 2016 common stock repurchase contract through the receipt of $58 million of cash. The Company had prepaid $57 million for the common stock repurchase contract in 2016 with the option to settle the contract in cash or Series C common stock in March 2017 . The Company elected to receive a cash settlement inclusive of a $1 million premium, which is reflected as an adjustment to APIC. Other Comprehensive (Loss) Income Adjustments The table below presents the tax effects related to each component of other comprehensive (loss) income and reclassifications made in the consolidated statements of operations (in millions). Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Pretax Tax Net-of-tax Pretax Tax Net-of-tax Currency translation adjustments: Unrealized (losses) gains: Foreign currency $ (295 ) $ (10 ) $ (305 ) $ 109 $ 9 $ 118 Net investment hedges 95 — 95 (39 ) — (39 ) Reclassifications: Loss on disposition 4 — 4 12 — 12 Total currency translation adjustments (196 ) (10 ) (206 ) 82 9 91 AFS adjustments: (a) Unrealized gains — — — 9 — 9 Reclassifications to other expense, net: Hedged portion of AFS securities — — — (4 ) — (4 ) Total equity investment adjustments — — — 5 — 5 Derivative adjustments: Unrealized gains (losses) 39 (9 ) 30 (18 ) 5 (13 ) Reclassifications: Distribution revenue (3 ) — (3 ) 4 (1 ) 3 Advertising revenue 2 — 2 1 — 1 Total derivative adjustments 38 (9 ) 29 (13 ) 4 (9 ) Other comprehensive (loss) income adjustments $ (158 ) $ (19 ) $ (177 ) $ 74 $ 13 $ 87 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Pretax Tax Net-of-tax Pretax Tax Net-of-tax Currency translation adjustments: Unrealized (losses) gains Foreign currency $ (224 ) $ (3 ) $ (227 ) $ 180 $ 10 $ 190 Net investment hedges 20 — 20 (43 ) — (43 ) Reclassifications: Loss on disposition 4 — 4 12 — 12 Total currency translation adjustments (200 ) (3 ) (203 ) 149 10 159 AFS adjustments: (a) Unrealized gains — — — 8 — 8 Reclassifications to other expense, net: Hedged portion of AFS securities — — — (4 ) — (4 ) Total equity investment adjustments — — — 4 — 4 Derivative adjustments: Unrealized gains (losses) 29 (6 ) 23 (31 ) 10 (21 ) Reclassifications: Distribution revenue (3 ) — (3 ) 7 (2 ) 5 Advertising revenue 1 — 1 1 — 1 Costs of revenues 4 (1 ) 3 (4 ) 1 (3 ) Interest expense — — — 1 — 1 Total derivative adjustments 31 (7 ) 24 (26 ) 9 (17 ) Other comprehensive (loss) income adjustments $ (169 ) $ (10 ) $ (179 ) $ 127 $ 19 $ 146 (a) Effective January 1, 2018 , upon adoption of ASU 2016-01, unrealized gains and losses on equity investments with readily determinable fair values are recorded in other expense, net . The Company recorded a transition adjustment to reclassify prior period amounts in other comprehensive income to retained earnings . (See Note 1 and Note 3.) Accumulated Other Comprehensive Loss The table below presents the changes in the components of accumulated other comprehensive loss , net of taxes (in millions). Three Months Ended June 30, 2018 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (612 ) $ — $ (1 ) $ (613 ) Other comprehensive (loss) income before reclassifications (210 ) — 30 (180 ) Reclassifications from accumulated other comprehensive loss to net income 4 — (1 ) 3 Other comprehensive (loss) income (206 ) — 29 (177 ) Ending balance $ (818 ) $ — $ 28 $ (790 ) Three Months Ended June 30, 2017 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (730 ) $ 10 $ 16 $ (704 ) Other comprehensive income (loss) before reclassifications 79 9 (13 ) 75 Reclassifications from accumulated other comprehensive loss to net income 12 (4 ) 4 12 Other comprehensive income (loss) 91 5 (9 ) 87 Ending balance $ (639 ) $ 15 $ 7 $ (617 ) Six Months Ended June 30, 2018 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (615 ) $ 26 $ 4 $ (585 ) Other comprehensive (loss) income before reclassifications (207 ) — 23 (184 ) Reclassifications from accumulated other comprehensive loss to net income 4 — 1 5 Other comprehensive (loss) income (203 ) — 24 (179 ) Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 — (26 ) — (26 ) Ending balance $ (818 ) $ — $ 28 $ (790 ) Six Months Ended June 30, 2017 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (797 ) $ 11 $ 24 $ (762 ) Other comprehensive income (loss) before reclassifications 147 8 (21 ) 134 Reclassifications from accumulated other comprehensive loss to net income 12 (4 ) 4 12 Other comprehensive income (loss) 159 4 (17 ) 146 Other comprehensive income attributable to redeemable noncontrolling interests (1 ) — — (1 ) Ending balance $ (639 ) $ 15 $ 7 $ (617 ) (a) Effective January 1, 2018 , unrealized gains and losses on equity investments with readily determinable fair values are recorded in other expense, net. (See Note 1 and Note 3.) |
Noncontrolling Interest
Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | REDEEMABLE NONCONTROLLING INTERESTS The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Beginning balance $ 419 $ 249 $ 413 $ 243 Cash distributions to redeemable noncontrolling interests (19 ) (17 ) (21 ) (20 ) Comprehensive income adjustments: Net income attributable to redeemable noncontrolling interests 5 6 11 12 Other comprehensive income attributable to redeemable noncontrolling interests — — — 1 Currency translation on redemption values (1 ) (1 ) 1 — Retained earnings adjustments: Adjustments of redemption values to the floor 6 — 6 1 Ending balance $ 410 $ 237 $ 410 $ 237 Redeemable noncontrolling interests consist of the arrangements described below: In connection with its noncontrolling interest in OWN, Harpo has the right to require the Company to purchase its remaining noncontrolling interest at fair value during 90-day windows beginning on July 1, 2018 and every two and a half years thereafter through January 1, 2026. As of the issuance date of these financial statements, Harpo has not exercised its right to put. As Harpo’s put right is outside the control of the Company, Harpo’s noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. As of June 30, 2018 , the Company recorded $56 million for the redeemable noncontrolling interest in equity of OWN. (See Note 2.) In connection with the MTG joint venture between Discovery and GoldenTree created on September 25, 2017 , GoldenTree acquired a put right exercisable during 30-day windows beginning on each of March 25, 2021 , September 25, 2022 and March 25, 2024 , that requires Discovery to either purchase all of GoldenTree's noncontrolling 32.5% interest in the joint venture at fair value or participate in an initial public offering for the joint venture. As the put right is outside of the Company's control, GoldenTree's 32.5% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. As of June 30, 2018 , the Company recorded $121 million for the redeemable noncontrolling interest in equity of MTG. (See Note 2.) In connection with its noncontrolling interest in Discovery Family, Hasbro Inc. ("Hasbro") has the right to put the entirety of its remaining 40% interest in the Company to Discovery at any time during the one -year period beginning December 31, 2021 , or in the event a Discovery performance obligation related to Discovery Family is not met. Embedded in the redeemable noncontrolling interest is also a Discovery call right that is exercisable during the same one -year period beginning December 31, 2021 . Upon the exercise of the put or call options, the price to be paid for the redeemable noncontrolling interest is generally a function of the then-current fair market value of the redeemable noncontrolling interest, to which certain discounts and floor values may apply in specified situations depending upon the party exercising the put or call and the basis for the exercise of the put or call. As Hasbro's put right is outside the control of the Company, Hasbro's 40% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. As of June 30, 2018 , the Company recorded $206 million for the redeemable noncontrolling interest in equity of Discovery Family. In connection with its noncontrolling interest in Discovery Japan, Jupiter Telecommunications Co., Ltd ("J:COM") has the right to put all, but not less than all, of its 20% noncontrolling interest to Discovery at any time for cash. As amended, through January 10, 2019 , the redemption value is the January 10, 2013 , fair value denominated in Japanese yen; thereafter, as chosen by J:COM, the redemption value is the then-current fair value or the January 10, 2013 , fair value denominated in Japanese yen. As of June 30, 2018 , the Company recorded $27 million for the redeemable noncontrolling interest in equity of Discovery Japan. Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values remeasured at the period end foreign exchange rates (i.e., the "floor"). Adjustments to the carrying amount of redeemable noncontrolling interests to redemption value as a result of changes in exchange rates are reflected in currency translation adjustments, a component of other comprehensive (loss) income ; however, such currency translation adjustments to redemption value are allocated to Discovery stockholders only. Redeemable noncontrolling interest adjustments of redemption value to the floor are reflected in retained earnings. The adjustment of redemption value to the floor that reflects a redemption in excess of fair value is included as an adjustment to income from continuing operations available to Discovery, Inc. stockholders in the calculation of earnings per share. NONCONTROLLING INTEREST In conjunction with the acquisition of Scripps Networks, the Company acquired a controlling interest in the TV Food Network Partnership ("the Partnership"), which is jointly owned with Tribune Media Company (the "Tribune Company"). Food Network and Cooking Channel are operated and organized under the terms of the Partnership. The Company holds 80% of the voting interest and 68.7% of the economic interest in the Partnership. Under the terms of the Partnership, the Partnership has a dissolution date of December 31, 2020 . If the term of the Partnership is not extended prior to that date, the Partnership agreement permits the Company, as holder of 80% of the applicable votes, to reconstitute the Partnership and continue its business. If for some reason the Partnership is not continued, it will be required to limit its activities to winding up, settling debts, liquidating assets and distributing proceeds to the partners in proportion to their partnership interests. Ownership interests attributable to the Tribune Company are presented as noncontrolling interests on the Company's consolidated financial statements. Under the terms of the Partnership agreement, Tribune Company cannot force a redemption outside of the Company's control. As such, the noncontrolling interests in the Partnership are reflected as a component of permanent equity in the Company's consolidated financial statements. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES The Company generates revenues principally from: (i) distribution revenues for fees charged to distributors of its network content, which include cable, direct-to-home ("DTH") satellite, telecommunications and digital service providers and bundled long-term content arrangements, (ii) advertising revenue for advertising sold on its television networks and websites and (iii) other revenue related to several items including: (a) production studios content development and services, (b) affiliate and advertising sales representation services and (c) the licensing of the Company's brands for consumer products. Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration that the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax. However, certain revenues include taxes that customers pay to taxing authorities on the Company’s behalf, such as foreign withholding tax. Revenue recognition for each source of revenue is also based on the following policies. Distribution Cable operators, DTH satellite operators and telecommunications service providers typically pay a per-subscriber fee for the right to distribute the Company’s programming under the terms of distribution contracts. The majority of the Company’s distribution fees are collected monthly throughout the year and distribution revenue is recognized over the term of the contracts based on contracted programming rates and reported subscriber levels. The amount of distribution fees due to the Company is reported by distributors based on actual subscriber levels. Such information is generally not received until after the close of the reporting period. In these cases, the Company estimates the number of subscribers receiving the Company’s programming to estimate royalty revenue. Historical adjustments to recorded estimates have not been material. Distribution revenue from fixed-fee contracts is recognized over the contract term based on the continuous delivery of the content to the affiliate. Any monetary incentives provided to distributors are recognized as a reduction of revenue over the service term. Revenues associated with digital distribution arrangements are recognized when the Company transfers control of the content and the rights to distribute the content to the customer. Although the delivery of linear feeds and digital direct-to-consumer products, such as video on demand (“VOD”), are considered distinct performance obligations, VOD offerings generally match the programs that are airing on the linear network. Therefore, the Company recognizes revenue for licensing arrangements that include both linear feeds and VOD as the license fee is earned. Advertising Advertising revenues are principally generated from the sale of bundled commercial time on linear and digital platforms. A substantial portion of the advertising contracts in the U.S. and certain international markets guarantee the advertiser a minimum audience level that either the program in which their advertisements are aired or the advertisement will reach. Revenues are recognized based on the audience level delivered multiplied by the average price per impression. The Company provides the advertiser with advertising until the guaranteed audience level is delivered. As such, revenues are deferred until the guaranteed audience level is delivered or the rights associated with the guarantee lapse, which is less than a year. Audience guarantees are initially developed internally based on planned programming, historical audience levels, the success of pilot programs, and market trends. Invoiced advertising revenue receivables may exceed the value of the audience delivery, resulting in deferred revenue balances. Advertising contracts, which are generally short-term, are billed monthly, with payments due shortly after the invoice date. Actual audience and delivery information is published by independent ratings services. In certain instances, the independent ratings information is not received until after the close of the reporting period. In these cases, reported advertising revenue and related deferred revenue are based upon the Company’s estimates of the audience level delivered. Historical adjustments to recorded estimates have not been material. For contracts without an audience guarantee, advertising revenues are recognized as each spot airs. Advertising revenues from digital platforms are recognized as impressions are delivered or the services are performed. The airing of a campaign of advertising spots with a guaranteed audience level is considered a single, distinct performance obligation. The airing of individual spots without a guaranteed audience level are each distinct, individual performance obligations. The Company allocates the consideration to each spot based on their relative standalone selling prices. Other Royalties from brand licensing arrangements are earned as products are sold by the licensee. License fees from the sublicensing of sports rights are recognized when the rights become available for airing. Revenue from the production studios segment is recognized when the content is delivered and available for airing by the customer. Revenue for curriculum-based services is recognized ratably over the contract term as service is provided. Multiple Performance Obligations Contracts with customers may include multiple distinct performance obligations. For example, distribution contracts may include VOD and digital direct-to-consumer products in addition to the linear feed delivery. Advertising contracts may include sponsorship, production, or product integration in addition to the airing of spots and the satisfaction of an audience guarantee. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price, which is determined based on the cost plus an expected margin. In the case of VOD and linear feed, performance obligations satisfaction occurs at the same time. Therefore, any transaction price allocated to the VOD performance obligation would be recognized using the same pattern of recognition as the linear feed. Deferred Revenue Deferred revenue consists of cash received for television advertising for which the guaranteed viewership has not been provided, product licensing arrangements in which fee collections are in excess of the license value provided, advanced fees received related to the sublicensing of Olympic rights and advanced billings to subscribers for access to the Company’s curriculum-based streaming services. The amounts classified as current are expected to be earned within the next year. Payment terms vary by the type and location of the customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Revenue Recognition The following table presents the Company’s revenues disaggregated by revenue source (in millions). Management uses these categories of revenue to evaluate the performance of its businesses and to assess its financial results and forecasts. Three Months Ended June 30, 2018 2017 U.S. Networks International Networks Education and Other U.S. Networks International Networks Education and Other Revenues: Distribution $ 654 $ 532 $ — $ 400 $ 457 $ — Advertising 1,090 473 — 472 333 — Other 36 46 14 18 21 44 Totals $ 1,780 $ 1,051 $ 14 $ 890 $ 811 $ 44 Six Months Ended June 30, 2018 2017 U.S. Networks International Networks Education and Other U.S. Networks International Networks Education and Other Revenues: Distribution $ 1,168 $ 1,069 $ — $ 808 $ 904 $ — Advertising 1,717 858 — 877 615 — Other 69 222 49 34 39 81 Totals $ 2,954 $ 2,149 $ 49 $ 1,719 $ 1,558 $ 81 Transaction Price Allocated to Remaining Performance Obligations Most of the Company's distribution contracts are licenses of functional intellectual property where revenue is derived from royalty-based arrangements, for which the guidance allows for the application of a practical expedient instead of estimating incremental royalty contract revenue. However, there are certain other distribution arrangements that are fixed price or contain minimum guarantees that extend beyond one year. The transaction price allocated to remaining performance obligations within these fixed price or minimum guarantee distribution revenue contracts was $1.8 billion as of June 30, 2018 , and is expected to be recognized over the next ten years. The Company's content licensing contracts and sports sublicensing deals are licenses of functional intellectual property. Certain of these arrangements extend beyond one year. The transaction price allocated to remaining performance obligations on these long-term contracts was $535 million as of June 30, 2018 , and is expected to be recognized over the next seven years. The Company's brand licensing contracts are licenses of symbolic intellectual property. Certain of these arrangements extend beyond one year. The transaction price allocated to remaining performance obligations on these long-term contracts was $79 million as of June 30, 2018 , and is expected to be recognized over the next fifteen years. Due to the use of the practical expedients noted below, the above disclosure does not include information related to advertising since the duration of these arrangements is less than one year. Contract Balances A receivable is recorded when there is an unconditional right to consideration based on a contract with a customer. A contract liability, deferred revenue, is recorded when cash is received in advance of the Company's performance. The following table presents (in millions) the Company’s opening and closing balances of receivables and deferred revenues, as well as activity since the beginning of the period. December 31, 2017 Additions (b) Reductions (c) Foreign Currency June 30, 2018 Accounts receivable $ 1,838 5,933 (4,999 ) (25 ) $ 2,747 Deferred revenues: Current 255 699 (668 ) (9 ) 277 Long term (a) 109 9 (21 ) — 97 December 31, 2016 Additions Reductions (d) Foreign Currency June 30, 2017 Accounts receivable $ 1,495 3,382 (3,139 ) 20 $ 1,758 Deferred revenues: Current 163 388 (388 ) 30 193 Long term (a) 122 9 (39 ) 3 95 (a) Long term deferred revenues is a component of other noncurrent liabilities on the consolidated balance sheets. (b) This column includes Scripps Networks accounts receivable and deferred revenues balances of $783 million and $122 million , respectively, as of March 6, 2018 , the date of the acquisition. (See Note 2.) (c) This column includes the impact of the sale of the Education Business on April 30, 2018 . (See Note 2.) As of the sale date, accounts receivable and deferred revenue balances were $32 million and $74 million , respectively. (d) This column includes the impact of the sale of Raw and Betty on April 28, 2017 . (See Note 2.) As of the sale date, accounts receivable and deferred revenue balances were $6 million and $17 million , respectively. Practical Expedients and Exemptions With the exception of commissions related to certain education products, sales commissions are generally expensed as incurred because contracts for which the sales commission are generated are one year or less or are not material. Sales commissions are recorded as a component of cost of revenues on the consolidated statements of operations. The financing component of content licensing arrangements is not capitalized, because the period between delivery of the license and customer payment is one year or less or is not material. The value of unsatisfied performance obligations is not disclosed for: (i) contracts involving variable consideration for which revenues are recognized in accordance with the usage-based royalty exception, and (ii) contracts with an original expected length of one year or less, such as advertising contracts. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company has defined contribution and other savings plans for the benefit of its employees that meet eligibility requirements. As a result of the acquisition of Scripps Networks on March 6, 2018 , the Company assumed employee defined benefit plans previously sponsored by Scripps Networks: (i) qualified defined benefit pension plan ("Pension Plan") that covers certain U.S.-based employees and (ii) non-qualified unfunded Supplemental Executive Retirement Plan ("SERP"), which in addition to the Pension Plan provides defined pension benefits to eligible executives. Pension Plan and SERP Expense recognized in relation to the Pension Plan and SERP is based upon actuarial valuations. Inherent in those valuations are key assumptions including discount rates and, where applicable, expected returns on assets and projected future salary rates. Benefits are generally based on the employee’s compensation and years of service. As of December 31, 2009 , no additional service benefits have been earned by participants under the Pension Plan. The amount of eligible compensation that is used to calculate a plan participant’s pension benefit includes compensation earned by the employee through December 31, 2019 , after which time all plan participants will have a frozen pension benefit. The following table presents the funded status of the benefit obligation of the Pension Plan and SERP based upon a valuation as of March 6, 2018 , the date of the acquisition of Scripps Networks. The funded status represents the benefit obligation less the fair value of the plan assets. Plan assets consist of a mix of U.S. and non-U.S. equity securities, fixed income securities and alternative investment funds. March 6, 2018 Pension Plan SERP Projected benefit obligation $ (96 ) $ (62 ) Fair value of plan assets 60 — Funded status $ (36 ) $ (62 ) The following table presents the components of the net periodic pension cost for the Pension Plan and SERP (in millions). Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Pension Plan SERP Pension Plan SERP Interest cost $ 0.9 $ 0.4 $ 1.2 $ 0.5 Expected return on plan assets, net of expenses (1.0 ) — (1.4 ) — Net periodic pension cost $ (0.1 ) $ 0.4 $ (0.2 ) $ 0.5 Following the acquisition of Scripps Networks, the Company contributed $1 million to the Pension Plan and made no SERP benefit payments. During the remainder of 2018 , the Company anticipates contributing $2 million to fund the Pension Plan and making $35 million in SERP benefit payments. Assumptions used in determining the Pension Plan and SERP expense, following the acquisition of Scripps Networks, were as follows. Six Months Ended June 30, 2018 Pension Plan SERP Discount rate 3.70 % 3.41 % Long-term rate of return on plan assets 7.50 % N/A Rate of compensation increases 3.56 % 3.21 % Assumption Description Discount rate Based on a bond portfolio approach that includes securities rated Aa or better with maturities matching the Company's expected benefit payments from the plans. Long-term rate of return on plan assets Based on the weighted-average expected rate of return and capital market forecasts for each asset class employed and also considers the Company's historical compounded return on plan assets for 10 and 15 year periods. Increase in compensation levels Based on actual past experience and the near-term outlook. Mortality RP 2014 mortality tables adjusted and projected using the scale MP-2017 mortality improvement rates. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following table reconciles the U.S. federal statutory income tax rate to the Company's effective income tax rate. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 U.S. federal statutory income tax provision $ 77 21 % $ 165 35 % $ 73 21 % $ 262 35 % State and local income taxes, net of federal tax benefit 13 3 % 8 2 % 5 2 % 11 2 % Effect of foreign operations 11 3 % (24 ) (5 )% 15 4 % (39 ) (5 )% Domestic production activity deductions — — % (14 ) (3 )% — — % (22 ) (3 )% Change in uncertain tax positions 25 7 % — — % 27 7 % 1 — % Renewable energy investments tax credits (See Note 3) (3 ) (1 )% (40 ) (9 )% (3 ) (1 )% (66 ) (9 )% U.S. legislative changes — — % — — % (19 ) (5 )% — — % Noncontrolling interest adjustment (4 ) (1 )% — — % (4 ) (1 )% — — % Other, net 4 1 % (2 ) — % 9 2 % 1 — % Income tax expense $ 123 33 % $ 93 20 % $ 103 29 % $ 148 20 % On December 22, 2017 , new federal tax reform legislation ("TCJA") was enacted in the United States, resulting in significant changes from previous tax law. The TCJA revised the U.S. corporate income tax most significantly for Discovery by lowering the statutory corporate tax rate from 35% to 21% and reinstating bonus depreciation that will allow for full expensing of qualified property, for property placed in service before 2023 , including qualified films, such as content produced by the Company. The TCJA also eliminated or significantly amended certain deductions (interest, domestic production activities deduction and executive compensation). The TCJA fundamentally changed taxation of multinational entities by moving from a system of worldwide taxation with deferral to a hybrid territorial system, featuring a participation exemption regime with current taxation of certain foreign income. Included in the international provisions was the enactment of a minimum tax on low-taxed foreign earnings, and new measures to deter base erosion and promote U.S. production. Notwithstanding the U.S. taxation of these amounts, we intend to continue to invest most or all of these earnings, as well as our capital in these subsidiaries, indefinitely outside of the U.S. Based on our preliminary assessment of the TCJA impact, we recognized a one-time, provisional net tax benefit of $44 million in the fourth quarter of 2017 related to: the deemed repatriation tax on post-1986 accumulated earnings and profits, the deferred tax rate change effect of the new law, gross foreign tax credit carryforwards and related valuation allowances to offset foreign tax credit carryforwards. Our 2017 US federal income tax return will not be finalized until later in 2018 , and while historically this process has resulted in offsetting changes in estimates in current and deferred taxes for items which are timing related, the reduction of the US tax rate will result in adjustments to our income tax provision when recorded. Given the substantial changes to the Internal Revenue Code as a result of the TCJA, our estimated financial impacts are subject to further analysis, interpretation and clarification of the new law, which could result in changes to our estimates in future quarters in 2018 . We did not make an adjustment during the three and six months ended June 30, 2018 to our provisional estimate recognized in 2017 . However, adjustments may be required in future periods. The Company and its subsidiaries file income tax returns in the U.S. and various state and foreign jurisdictions. The Internal Revenue Service recently completed audit procedures for its 2008 to 2011 tax years, the results of which should be finalized in the coming year. The Company is currently under audit by the Internal Revenue Service for its 2012 to 2014 consolidated federal income tax returns. It is difficult to predict the final outcome or timing of resolution of any particular tax matter. Accordingly, the impact of these audits on any of the reserves for uncertain tax positions cannot currently be determined. With few exceptions, the Company is no longer subject to audit by any jurisdiction for years prior to 2006 . The Company's reserves for uncertain tax positions as of June 30, 2018 and December 31, 2017 totaled $410 million and $189 million , respectively. The uncertain tax positions balance as of June 30, 2018 includes $188 million related to Scripps Networks upon the acquisition. It is reasonably possible that the total amount of unrecognized tax benefits related to certain of the Company's uncertain tax positions could decrease by as much as $49 million within the next twelve months as a result of ongoing audits, lapses of statutes of limitations or regulatory developments. As of June 30, 2018 and December 31, 2017 , the Company had accrued approximately $57 million and $21 million , respectively, of total interest and penalties payable related to unrecognized tax benefits. The interest and penalties payable balance as of June 30, 2018 includes $32 million carried over from Scripps Networks' financial information upon the acquisition. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE In calculating earnings per share, the Company follows the two -class method, which distinguishes between classes of securities based on the proportionate participation rights of each security type in the Company's undistributed income. The Company's Series A, B and C common stock and the Series C-1 convertible preferred stock are treated as one class for purposes of applying the two-class method, because they have substantially equal rights and share equally on an as-converted basis with respect to income available to Discovery, Inc. Pursuant to the Exchange Agreement with Advance/Newhouse, Discovery issued newly designated shares of Series A-1 and Series C-1 preferred stock in exchange for all outstanding shares of Discovery's Series A and Series C convertible participating preferred stock. (See Note 9.) The Exchange is treated as a reverse stock split and the Company has recast historical basic and diluted earnings per share available to Series C-1 preferred stockholders (previously Series C preferred stockholders). Prior to the Exchange, Series C convertible preferred stock was convertible into Series C common stock at a conversion rate of 2.0 shares of Series C common stock for each share of Series C convertible preferred stock. Following the exchange, the Series C-1 preferred stock may be converted into Series C common stock at a conversion rate of 19.3648 shares of Series C common stock for each share of Series C-1 preferred stock. As such, the Company has retrospectively restated basic and diluted earnings per share information for Discovery's Series C-1 preferred stock for the three and six months ended June 30, 2017 . The Exchange did not impact historical basic and diluted earnings per share attributable to the Company's Series A, B and C common stockholders. The table below sets forth the computation for income allocated to Discovery, Inc. stockholders (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net income $ 244 $ 380 $ 247 $ 601 Less: Allocation of undistributed income to Series A-1 convertible preferred stock (21 ) (46 ) (22 ) (72 ) Net income attributable to noncontrolling interests (23 ) — (28 ) — Net income attributable to redeemable noncontrolling interests (5 ) (6 ) (11 ) (12 ) Redeemable noncontrolling interest adjustments to redemption value (6 ) — (6 ) — Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 189 $ 328 $ 180 $ 517 Allocation of net income to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: Series A, B and C common stockholders 155 250 145 393 Series C-1 convertible preferred stockholders 34 78 35 124 Total 189 328 180 517 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders 21 46 22 72 Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 210 $ 374 $ 202 $ 589 Net income allocated to Discovery, Inc. Series C-1 convertible preferred stockholders for diluted net income per share is included in net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share. For the three months ended June 30, 2018 and 2017 , net income allocated to Discovery, Inc. Series C-1 convertible preferred stockholders used to calculate diluted net income per share was $34 million and $78 million , respectively. For the six months ended June 30, 2018 and 2017 , net income allocated to Discovery, Inc. Series C-1 convertible preferred stockholders used to calculate diluted net income per share was $35 million and $124 million , respectively. The table below sets forth the weighted average number of shares outstanding utilized in determining the denominator for basic and diluted earnings per share (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Denominator — weighted average: Series A, B and C common shares outstanding — basic 523 384 473 387 Impact of assumed preferred stock conversion 187 192 187 193 Dilutive effect of share-based awards 2 2 1 3 Series A, B and C common shares outstanding — diluted 712 578 661 583 Series C-1 convertible preferred stock outstanding — basic and diluted 6 6 6 6 The weighted average number of diluted shares outstanding adjusts the weighted average number of shares of Series A, B and C common stock outstanding for the potential dilution that would occur if common stock equivalents, including convertible preferred stock and share-based awards, were converted into common stock or exercised, calculated using the treasury stock method. Series A, B and C diluted common stock includes the impact of the conversion of Series A-1 preferred stock, the impact of the conversion of Series C-1 preferred stock, and the impact of share-based compensation to the extent it is not anti-dilutive. Prior to the Exchange, Series C convertible preferred stock was convertible into Series C common stock at a conversion rate of 2.0 shares of Series C common stock for each share of Series C convertible preferred stock. Following the Exchange, the Series C-1 preferred stock may be converted into Series C common stock at a conversion rate of 19.3648 shares of Series C common stock for each share of Series C-1 preferred stock. The table below sets forth the Company's calculated earnings per share. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic net income per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.30 $ 0.65 $ 0.31 $ 1.02 Series C-1 convertible preferred stockholders $ 5.73 $ 12.54 $ 5.93 $ 19.65 Diluted net income per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.30 $ 0.64 $ 0.31 $ 1.01 Series C-1 convertible preferred stockholders $ 5.72 $ 12.50 $ 5.92 $ 19.56 Earnings per share amounts may not recalculate due to rounding. The computation of the diluted earnings per share of Series A, B and C common stockholders assumes the conversion of Series A-1 and C-1 convertible preferred stock, while the diluted earnings per share amounts of Series C-1 convertible preferred stock does not assume conversion of those shares. The table below presents the details of the anticipated stock repurchases and share-based awards that were excluded from the calculation of diluted earnings per share (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Anti-dilutive stock options and RSUs 11 11 12 10 PRSUs whose performance targets have not been achieved 2 1 2 1 Only outstanding PRSUs whose performance targets have been achieved as of the last day of the most recent period are included in the dilutive effect calculation. |
Supplemental Disclosures
Supplemental Disclosures | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Disclosures | SUPPLEMENTAL DISCLOSURES The following tables present supplemental information related to the consolidated financial statements (in millions). Accrued Liabilities June 30, 2018 December 31, 2017 Accrued payroll and related benefits $ 421 $ 535 Content rights payable 304 219 Accrued interest 150 148 Accrued income taxes 38 45 Current portion of share-based compensation liabilities 28 12 Other accrued liabilities 532 350 Total accrued liabilities $ 1,473 $ 1,309 Other Expense, net Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Foreign currency losses, net $ (47 ) $ (26 ) $ (51 ) $ (35 ) Gain (loss) on derivative instruments, net 5 1 10 (2 ) Change in the value of common stock investments with readily determinable fair value (a) (5 ) — (43 ) — Interest income (b) — — 15 — Other income, net — 1 — — Total other expense, net $ (47 ) $ (24 ) $ (69 ) $ (37 ) (a) As of January 1, 2018 , upon adoption of ASU 2016-01, equity investments with readily determinable fair value for which the Company has the intent to retain the investment are measured at fair value, with unrealized gains and losses recorded in other expense, net . (See Notes 1 and 3.) (b) Interest income for the six months ended June 30, 2018 is comprised primarily of interest on proceeds from the issuance of senior notes used to fund the acquisition of Scripps Networks. As of June 30, 2018 , the Company had liquidated and utilized the proceeds in the acquisition of Scripps Networks. Share-Based Plan Proceeds, net Share-based plan payments, net in the statement of cash flows consisted of the following (in millions). Six Months Ended June 30, 2018 2017 Tax settlements associated with share-based plans $ (17 ) $ (30 ) Proceeds from issuance of common stock in connection with share-based plans 43 41 Total share-based plan proceeds, net $ 26 $ 11 Supplemental Cash Flow Information Six Months Ended June 30, 2018 2017 Cash paid for taxes, net $ 119 $ 199 Cash paid for interest, net 381 184 Non-cash investing and financing activities: Equity issued for the acquisition of Scripps Networks 3,218 — Accrued purchases of property and equipment 12 18 Assets acquired under capital lease arrangements 94 38 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS In the normal course of business, the Company enters into transactions with related parties. Related parties include entities that share common directorship, such as Liberty Global plc (“Liberty Global”), Liberty Broadband Corporation ("Liberty Broadband") and their subsidiaries and equity method investees (together the “Liberty Group”). Discovery’s Board of Directors includes Mr. Malone, who is Chairman of the Board of Liberty Global and beneficially owns approximately 27% of the aggregate voting power with respect to the election of directors of Liberty Global. Mr. Malone is also Chairman of the Board of Liberty Broadband and beneficially owns approximately 46% of the aggregate voting power with respect to the election of directors of Liberty Broadband. The majority of the revenue earned from the Liberty Group relates to multi-year network distribution arrangements. Related party transactions also include revenues and expenses for content and services provided to or acquired from equity method investees, such as All3Media, UKTV, nC+ and a Russian cable television business, or minority partners of consolidated subsidiaries, such as Hasbro and the Tribune Company. The table below presents a summary of the transactions with related parties, including OWN, prior to the November 30, 2017 acquisition (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenues and service charges: Liberty Group $ 162 $ 128 $ 307 $ 254 Equity method investees (a) 49 38 88 72 Other 17 8 37 21 Total revenues and service charges $ 228 $ 174 $ 432 $ 347 Interest income $ 2 $ 3 $ 2 $ 7 Expenses $ (116 ) $ (40 ) $ (182 ) $ (70 ) (a) The increase for the three and six months ended June 30, 2018 relates to revenues and service charges earned from related party entities following the acquisition of Scripps Networks. The table below presents receivables due from related parties (in millions). June 30, 2018 December 31, 2017 Receivables (b) $ 153 $ 105 Note receivable (c) $ 96 $ — (b) The increase in related party receivables was a result of the acquisition of Scripps Networks. (c) Amount relates to a note receivable with UKTV, an equity method investee acquired in conjunction with the acquisition of Scripps Networks. (See Note 3.) |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Guarantees | COMMITMENTS, CONTINGENCIES, AND GUARANTEES Commitments The Company’s contractual commitments increased significantly following the acquisition of Scripps Networks. Below are the Company's updated combined contractual payment commitments as of June 30, 2018 , including by period (in millions). Leases Year Ending December 31, Operating Capital Content Other Total 2018 (remaining six months) $ 48 $ 31 $ 617 $ 281 $ 977 2019 91 50 725 424 1,290 2020 91 45 821 282 1,239 2021 78 40 377 138 633 2022 49 34 383 86 552 Thereafter 490 117 860 118 1,585 Total minimum payments 847 317 3,783 1,329 6,276 Amounts representing interest — (38 ) — — (38 ) Total $ 847 $ 279 $ 3,783 $ 1,329 $ 6,238 The Company enters into multi-year lease arrangements for transponders, office space, studio facilities and other equipment. Most leases are not cancelable prior to their expiration. Content purchase commitments are associated with third-party producers and sports associations for content that airs on the television networks. Production contracts generally require the purchase of a specified number of episodes with payments over the term of the license. Production contracts include both programs that have been delivered and are available for airing and programs that have not yet been produced or sporting events that have not yet taken place. If the content is ultimately never produced, the Company's commitments expire without obligation. The commitments disclosed above exclude content liabilities recognized on the consolidated balance sheet. Other purchase obligations include agreements with certain vendors and suppliers for the purchase of goods and services whereby the underlying agreements are enforceable, legally binding and specify all significant terms. Significant purchase obligations include transmission services, television rating services, marketing research, employment contracts, equipment purchases and information technology services. Some of these contracts do not require the purchase of fixed or minimum quantities and generally may be terminated with a 30-day to 60-day advance notice without penalty, and are not included in the table above past the 30-day to 60-day advance notice period. Amounts related to employment contracts include base compensation, but do not include compensation contingent on future events. Although the Company had funding commitments to equity method investees as of June 30, 2018 , the Company may also provide uncommitted additional funding to its equity method investments in the future. (See Note 3.) Contingencies Put Rights The Company has granted put rights to certain consolidated subsidiaries. Harpo, GoldenTree, Hasbro and J:COM have the right to require the Company to purchase their remaining noncontrolling interests in OWN, MTG, Discovery Family and Discovery Japan, respectively. The Company recorded the carrying value of the noncontrolling interest in the equity associated with the put rights for OWN, MTG, Discovery Family and Discovery Japan as a component of redeemable noncontrolling interest in the amounts of $56 million , $121 million , $206 million and $27 million , respectively. (See Note 8.) Legal Matters The Company is party to various lawsuits and claims in the ordinary course of business, including claims related to employees, vendors, other business partners or patent issues. However, a determination as to the amount of the accrual required for such contingencies is highly subjective and requires judgment about future events. Although the outcome of these matters cannot be predicted with certainty and the impact of the final resolution of these matters on the Company's results of operations in a particular subsequent reporting period is not known, management does not believe that the resolution of these matters will have a material adverse effect on the Company's future consolidated financial position, future results of operations or cash flows. During the quarter ended June 30, 2018 , the Company received written notification from tax authorities of an indirect tax claim stemming from an audit that commenced in 2017 . A liability of $74 million has been recorded as a measurement period adjustment to the provisional Scripps Networks purchase accounting. The Company intends to defend the matter vigorously and believes that the potential for material loss beyond the amount already provided is remote. Guarantees There were no guarantees recorded as of June 30, 2018 and December 31, 2017 . The Company may provide or receive indemnities intended to allocate business transaction risks. Similarly, the Company may remain contingently liable for certain obligations of a divested business in the event that a third party does not fulfill its obligations under an indemnification obligation. The Company records a liability for its indemnification obligations and other contingent liabilities when probable and estimable. There were no material amounts for indemnifications or other contingencies recorded as of June 30, 2018 and December 31, 2017 . |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments | REPORTABLE SEGMENTS The Company’s operating segments are determined based on (i) financial information reviewed by its chief operating decision maker ("CODM"), the Chief Executive Officer ("CEO"), (ii) internal management and related reporting structure and (iii) the basis upon which the CEO makes resource allocation decisions. The Company's operating segments did not change as a result of the acquisition of Scripps Networks. The accounting policies of the reportable segments are the same as the Company’s, except that certain inter-segment transactions that are eliminated for consolidation are not eliminated at the segment level. Inter-segment transactions primarily include advertising and content purchases. The Company evaluates the operating performance of its segments based on financial measures such as revenues and adjusted operating income before depreciation and amortization (“Adjusted OIBDA”). Adjusted OIBDA is defined as operating income excluding: (i) mark-to-market share-based compensation, (ii) depreciation and amortization, (iii) restructuring and other charges, (iv) certain impairment charges, (v) gains and losses on business and asset dispositions, (vi) certain inter-segment eliminations related to production studios, and (vii) third-party transaction costs directly related to the acquisition and integration of Scripps Networks. The Company uses this measure to assess the operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance and allocate resources to each segment. The Company believes Adjusted OIBDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes mark-to-market share-based compensation, restructuring and other charges, certain impairment charges, gains and losses on business and asset dispositions and Scripps Networks transaction and integration costs from the calculation of Adjusted OIBDA due to their impact on comparability between periods. The Company also excludes depreciation of fixed assets and amortization of intangible assets, as these amounts do not represent cash payments in the current reporting period. Certain corporate expenses are excluded from segment results to enable executive management to evaluate segment performance based upon the decisions of segment executives. Total Adjusted OIBDA should be considered in addition to, but not a substitute for, operating income, net income and other measures of financial performance reported in accordance with GAAP. The tables below present summarized financial information for each of the Company’s reportable segments, other operating segments and corporate and inter-segment eliminations (in millions). Revenues Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 U.S. Networks $ 1,780 $ 890 $ 2,954 $ 1,719 International Networks 1,051 811 2,149 1,558 Education and Other 14 44 49 81 Total revenues $ 2,845 $ 1,745 $ 5,152 $ 3,358 Adjusted OIBDA Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 U.S. Networks $ 983 $ 567 $ 1,635 $ 1,068 International Networks 336 236 473 430 Education and Other — 5 3 (1 ) Corporate and inter-segment eliminations (105 ) (91 ) (200 ) (177 ) Total Adjusted OIBDA $ 1,214 $ 717 $ 1,911 $ 1,320 Reconciliation of Net Income available to Discovery, Inc. to total Adjusted OIBDA Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income available to Discovery, Inc. $ 216 $ 374 $ 208 $ 589 Net income attributable to redeemable noncontrolling interests 5 6 11 12 Net income attributable to noncontrolling interests 23 — 28 — Income tax expense 123 93 103 148 Income before income taxes 367 473 350 749 Other expense, net 47 24 69 37 Loss from equity investees, net 40 42 62 95 Loss on extinguishment of debt — — — 54 Interest expense 196 91 373 182 Operating income 650 630 854 1,117 (Gain) loss on disposition (84 ) 4 (84 ) 4 Restructuring and other charges 187 8 428 32 Depreciation and amortization 410 80 603 160 Mark-to-market share-based compensation 26 (5 ) 29 7 Scripps Networks transaction and integration costs 25 — 81 — Total Adjusted OIBDA $ 1,214 $ 717 $ 1,911 $ 1,320 Total Assets June 30, 2018 December 31, 2017 U.S. Networks $ 19,625 $ 4,127 International Networks 7,124 5,187 Education and Other 268 394 Corporate and inter-segment eliminations 6,475 12,847 Total assets $ 33,492 $ 22,555 Total assets for corporate and inter-segment eliminations include goodwill that is allocated to the Company’s segments to account for goodwill. The presentation of segment assets in the table above is consistent with the financial reports that are reviewed by the Company’s CEO. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | RESTRUCTURING AND OTHER CHARGES Restructuring and other charges by segment were as follows (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 U.S. Networks $ 19 $ — $ 53 $ 4 International Networks 146 4 246 21 Education and Other 1 — 1 1 Corporate 21 4 128 6 Total restructuring and other charges $ 187 $ 8 $ 428 $ 32 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Restructuring charges $ 87 $ 4 $ 251 $ 28 Other charges 100 4 177 4 Total restructuring and other charges $ 187 $ 8 $ 428 $ 32 Restructuring charges include contract terminations, employee terminations and facility closures. These charges result from activities to integrate Scripps Networks and establish an efficient cost structure. Contract-related restructuring charges include payments to terminate certain life of series production and music license contracts. Employee terminations relate to cost reduction efforts and management changes. Facility-related restructuring charges are recognized upon exiting all or a portion of a leased facility after meeting cease-use requirements. Other charges relate to content write-offs which resulted from a strategic review of content, primarily in the international networks segment, following the acquisition of Scripps Networks. Changes in restructuring and other liabilities recorded in accrued liabilities by major category were as follows (in millions). Contract Terminations Employee Terminations Total December 31, 2017 $ 1 $ 42 $ 43 Net Accruals 50 194 244 Cash Paid (29 ) (129 ) (158 ) June 30, 2018 $ 22 $ 107 $ 129 Net accruals for the six months ended June 30, 2018 do not include $7 million of Scripps Networks equity awards exchanged for Discovery shares as of March 6, 2018 recorded in APIC and included in restructuring charges for the six months ended June 30, 2018 . |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 6 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Overview As of June 30, 2018 and December 31, 2017 , most of the outstanding senior notes have been issued by DCL, a wholly owned subsidiary of the Company, pursuant to one or more Registration Statements on Form S-3 filed with the U.S. Securities and Exchange Commission ("SEC"). (See Note 6.) Each of the Company, DCL and/or Discovery Communications Holding LLC (“DCH”) (collectively the “Issuers”) have the ability to conduct registered offerings of debt securities. 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) Scripps Networks, (iii) DCH, (iv) DCL, (v) the non-guarantor subsidiaries of DCL and Scripps Networks on a combined basis, and (vi) reclassifications and eliminations necessary to arrive at the consolidated financial statement balances for the Company. DCL primarily includes the Discovery Channel and TLC networks in the U.S. The non-guarantor subsidiaries of DCL and Scripps Networks include substantially all of the Company’s other U.S. and international networks, education businesses, production companies and most of the Company’s websites and digital distribution arrangements. 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. On April 3, 2018 , the Company completed a non-cash transaction in which $2.3 billion aggregate principal amount of Scripps Networks outstanding debt was exchanged for Discovery senior notes (See Note 6). The exchanged Scripps Networks senior notes are fully and unconditionally guaranteed by Scripps Networks and the Company. During the three months ended June 30, 2018 , the Company completed a series of senior note guaranty transactions and as a result as of June 30, 2018 , the Company and Scripps Networks fully and unconditionally guarantee all of Discovery's senior notes on an unsecured basis, except for the $243 million un-exchanged Scripps Networks Senior Notes. (See Note 6.) The condensed consolidated financial statements presented below reflect the addition of Scripps Networks as a guarantor as of and for the three months ended June 30, 2018 . Prior to the debt exchange and for the quarter ended March 31, 2018 , the Company presented Scripps Networks combined with its non-guarantor subsidiaries separately as other non-guarantor subsidiaries of Discovery. 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, Scripps Networks, and the other non-guarantor subsidiaries of the Company, including the non-guarantor subsidiaries of Scripps Networks, (ii) DCH’s interest in DCL, and (iii) DCL’s interests in the non-guarantor subsidiaries of DCL and Scripps Networks. 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 June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 47 $ — $ 25 $ 246 $ 74 $ — $ 392 Receivables, net — — — 474 1,350 923 — 2,747 Content rights, net — — — 3 269 86 — 358 Prepaid expenses and other current assets 20 53 31 33 155 117 — 409 Inter-company trade receivables, net — — — 182 — — (182 ) — Total current assets 20 100 31 717 2,020 1,200 (182 ) 3,906 Investment in and advances to subsidiaries 7,918 13,795 (5,945 ) 6,494 — (3,929 ) (18,333 ) — Noncurrent content rights, net — — — 676 1,576 1,006 — 3,258 Assets held for sale — — — 68 — — — 68 Goodwill, net — — — 3,678 3,316 6,125 — 13,119 Intangible assets, net — — — 256 1,377 8,735 — 10,368 Equity method investments, including note receivable — 96 — 23 317 587 — 1,023 Other noncurrent assets, including property and equipment, net — — 20 516 772 462 (20 ) 1,750 Total assets $ 7,938 $ 13,991 $ (5,894 ) $ 12,428 $ 9,378 $ 14,186 $ (18,535 ) $ 33,492 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ — $ — $ 608 $ 27 $ 11 $ — $ 646 Other current liabilities — 83 — 339 1,147 481 — 2,050 Inter-company trade payables, net — — — — 182 — (182 ) — Total current liabilities — 83 — 947 1,356 492 (182 ) 2,696 Noncurrent portion of debt — 241 — 16,858 544 40 — 17,683 Other noncurrent liabilities 2 86 — 568 574 1,866 (19 ) 3,077 Total liabilities 2 410 — 18,373 2,474 2,398 (201 ) 23,456 Redeemable noncontrolling interests — — — — 410 — — 410 Equity attributable to Discovery, Inc. 7,936 13,581 (5,894 ) (5,945 ) 6,494 11,788 (20,024 ) 7,936 Noncontrolling interests — — — — — — 1,690 1,690 Total equity 7,936 13,581 (5,894 ) (5,945 ) 6,494 11,788 (18,334 ) 9,626 Total liabilities and equity $ 7,938 $ 13,991 $ (5,894 ) $ 12,428 $ 9,378 $ 14,186 $ (18,535 ) $ 33,492 Condensed Consolidating Balance Sheet December 31, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ — $ 6,800 $ 509 $ — $ — $ 7,309 Receivables, net — — 410 1,428 — — 1,838 Content rights, net — — 4 406 — — 410 Prepaid expenses and other current assets 49 32 204 149 — — 434 Inter-company trade receivables, net — — 205 — — (205 ) — Total current assets 49 32 7,623 2,492 — (205 ) 9,991 Investment in and advances to subsidiaries 4,563 4,532 6,951 — 3,056 (19,102 ) — Noncurrent content rights, net — — 672 1,541 — — 2,213 Goodwill, net — — 3,677 3,396 — — 7,073 Intangible assets, net — — 259 1,511 — — 1,770 Equity method investments, including note receivable — — 25 310 — — 335 Other noncurrent assets, including property and equipment, net — 20 364 809 — (20 ) 1,173 Total assets $ 4,612 $ 4,584 $ 19,571 $ 10,059 $ 3,056 $ (19,327 ) $ 22,555 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ — $ 7 $ 23 $ — $ — $ 30 Other current liabilities — — 572 1,269 — — 1,841 Inter-company trade payables, net — — — 205 — (205 ) — Total current liabilities — — 579 1,497 — (205 ) 1,871 Noncurrent portion of debt — — 14,163 592 — — 14,755 Other noncurrent liabilities 2 — 297 606 21 (20 ) 906 Total liabilities 2 — 15,039 2,695 21 (225 ) 17,532 Redeemable noncontrolling interests — — — 413 — — 413 Total equity 4,610 4,584 4,532 6,951 3,035 (19,102 ) 4,610 Total liabilities and equity $ 4,612 $ 4,584 $ 19,571 $ 10,059 $ 3,056 $ (19,327 ) $ 22,555 Condensed Consolidating Statement of Operations Three Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 506 $ 1,385 $ 961 $ (7 ) $ 2,845 Costs of revenues, excluding depreciation and amortization — — — 107 593 292 3 995 Selling, general and administrative 5 1 — 87 417 187 (10 ) 687 Depreciation and amortization — — — 11 100 299 — 410 Restructuring and other charges 1 — — 16 137 35 (2 ) 187 Gain on disposition — — — — (84 ) — — (84 ) Total costs and expenses 6 1 — 221 1,163 813 (9 ) 2,195 Operating (loss) income (6 ) (1 ) — 285 222 148 2 650 Equity in earnings of subsidiaries 222 82 154 53 — 103 (614 ) — Interest income (expense) — 2 — (188 ) (10 ) — — (196 ) Income (loss) from equity investees, net — — — 1 (46 ) 5 — (40 ) Other income (expense), net — 1 — 73 (82 ) (38 ) (1 ) (47 ) Income before income taxes 216 84 154 224 84 218 (613 ) 367 Income tax benefit (expense) 1 — — (70 ) (26 ) (28 ) — (123 ) Net income 217 84 154 154 58 190 (613 ) 244 Net income attributable to noncontrolling interests — — — — — — (23 ) (23 ) Net income attributable to redeemable noncontrolling interests — — — — — — (5 ) (5 ) Net income available to Discovery, Inc. $ 217 $ 84 $ 154 $ 154 $ 58 $ 190 $ (641 ) $ 216 Condensed Consolidating Statement of Operations Three Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ 525 $ 1,224 $ — $ (4 ) $ 1,745 Costs of revenues, excluding depreciation and amortization — — 112 522 — — 634 Selling, general and administrative 5 — 56 332 — (4 ) 389 Depreciation and amortization — — 11 69 — — 80 Restructuring and other charges — — 3 5 — — 8 Loss on disposition — — — 4 — — 4 Total costs and expenses 5 — 182 932 — (4 ) 1,115 Operating (loss) income (5 ) — 343 292 — — 630 Equity in earnings of subsidiaries 376 376 245 — 251 (1,248 ) — Interest expense — — (83 ) (8 ) — — (91 ) Loss from equity investees, net — — — (42 ) — — (42 ) Other (expense) income, net — — (62 ) 38 — — (24 ) Income before income taxes 371 376 443 280 251 (1,248 ) 473 Income tax benefit (expense) 3 — (67 ) (29 ) — — (93 ) Net income 374 376 376 251 251 (1,248 ) 380 Net income attributable to redeemable noncontrolling interests — — — — — (6 ) (6 ) Net income available to Discovery, Inc. $ 374 $ 376 $ 376 $ 251 $ 251 $ (1,254 ) $ 374 Condensed Consolidating Statement of Operations Six Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 994 $ 2,934 $ 1,234 $ (10 ) $ 5,152 Costs of revenues, excluding depreciation and amortization — — — 214 1,459 384 (2 ) 2,055 Selling, general and administrative 31 — — 167 853 253 (8 ) 1,296 Depreciation and amortization — — — 28 193 382 — 603 Restructuring and other charges 9 — — 59 235 127 (2 ) 428 Gain on disposition — — — — (84 ) — — (84 ) Total costs and expenses 40 — — 468 2,656 1,146 (12 ) 4,298 Operating (loss) income (40 ) — — 526 278 88 2 854 Equity in earnings of subsidiaries 239 38 225 62 — 150 (714 ) — Interest expense — (4 ) — (345 ) (22 ) (2 ) — (373 ) Income (loss) from equity investees, net — — — 1 (77 ) 14 — (62 ) Other income (expense), net — 2 — 49 (78 ) (41 ) (1 ) (69 ) Income before income taxes 199 36 225 293 101 209 (713 ) 350 Income tax benefit (expense) 9 — — (68 ) (28 ) (16 ) — (103 ) Net income 208 36 225 225 73 193 (713 ) 247 Net income attributable to noncontrolling interests — — — — — — (28 ) (28 ) Net income attributable to redeemable noncontrolling interests — — — — — — (11 ) (11 ) Net income available to Discovery, Inc. $ 208 $ 36 $ 225 $ 225 $ 73 $ 193 $ (752 ) $ 208 Condensed Consolidating Statement of Operations Six Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ 1,016 $ 2,349 $ — $ (7 ) $ 3,358 Costs of revenues, excluding depreciation and amortization — — 220 1,021 — — 1,241 Selling, general and administrative 9 — 130 672 — (7 ) 804 Depreciation and amortization — — 23 137 — — 160 Restructuring and other charges — — 19 13 — — 32 Loss on disposition — — — 4 — — 4 Total costs and expenses 9 — 392 1,847 — (7 ) 2,241 Operating (loss) income (9 ) — 624 502 — — 1,117 Equity in earnings of subsidiaries 594 594 385 — 396 (1,969 ) — Interest expense — — (169 ) (13 ) — — (182 ) Loss on extinguishment of debt — — (54 ) — — — (54 ) Income (loss) from equity investees, net — — 1 (96 ) — — (95 ) Other (expense) income, net — — (89 ) 52 — — (37 ) Income before income taxes 585 594 698 445 396 (1,969 ) 749 Income tax benefit (expense) 4 — (104 ) (48 ) — — (148 ) Net income 589 594 594 397 396 (1,969 ) 601 Net income attributable to redeemable noncontrolling interests — — — — — (12 ) (12 ) Net income available to Discovery, Inc. $ 589 $ 594 $ 594 $ 397 $ 396 $ (1,981 ) $ 589 Condensed Consolidating Statement of Comprehensive Income Three Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 217 $ 84 $ 154 $ 154 $ 58 $ 190 $ (613 ) $ 244 Other comprehensive (loss) income adjustments, net of tax: Currency translation (206 ) (197 ) (49 ) (49 ) (64 ) (230 ) 589 (206 ) Derivatives 29 — 29 29 29 19 (106 ) 29 Comprehensive income (loss) 40 (113 ) 134 134 23 (21 ) (130 ) 67 Comprehensive income attributable to noncontrolling interests — — — — — — (23 ) (23 ) Comprehensive income attributable to redeemable noncontrolling interests 2 — 2 2 2 1 (14 ) (5 ) Comprehensive income (loss) attributable to Discovery, Inc. $ 42 $ (113 ) $ 136 $ 136 $ 25 $ (20 ) $ (167 ) $ 39 Condensed Consolidating Statement of Comprehensive Income Three Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 374 $ 376 $ 376 $ 251 $ 251 $ (1,248 ) $ 380 Other comprehensive income (loss) adjustments, net of tax: Currency translation 91 91 91 91 61 (334 ) 91 Available-for-sale securities 5 5 5 5 4 (19 ) 5 Derivatives (9 ) (9 ) (9 ) (9 ) (6 ) 33 (9 ) Comprehensive income 461 463 463 338 310 (1,568 ) 467 Comprehensive income attributable to redeemable noncontrolling interests — — — — — (6 ) (6 ) Comprehensive income attributable to Discovery, Inc. $ 461 $ 463 $ 463 $ 338 $ 310 $ (1,574 ) $ 461 Condensed Consolidating Statement of Comprehensive Income (Loss) Six Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 208 $ 36 $ 225 $ 225 $ 73 $ 193 $ (713 ) $ 247 Other comprehensive (loss) income adjustments, net of tax: Currency translation (203 ) (177 ) (26 ) (26 ) (41 ) (194 ) 464 (203 ) Derivatives 24 — 24 24 24 16 (88 ) 24 Comprehensive income (loss) 29 (141 ) 223 223 56 15 (337 ) 68 Comprehensive income attributable to noncontrolling interests — — — — — — (28 ) (28 ) Comprehensive income attributable to redeemable noncontrolling interests — — — — — — (11 ) (11 ) Comprehensive income (loss) attributable to Discovery, Inc. $ 29 $ (141 ) $ 223 $ 223 $ 56 $ 15 $ (376 ) $ 29 Condensed Consolidating Statement of Comprehensive Income (Loss) Six Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 589 $ 594 $ 594 $ 397 $ 396 $ (1,969 ) $ 601 Other comprehensive income (loss) adjustments, net of tax: Currency translation 159 159 159 159 106 (583 ) 159 Available-for-sale securities 4 4 4 4 3 (15 ) 4 Derivatives (17 ) (17 ) (17 ) (18 ) (11 ) 63 (17 ) Comprehensive income 735 740 740 542 494 (2,504 ) 747 Comprehensive income attributable to redeemable noncontrolling interests (1 ) (1 ) (1 ) (1 ) (1 ) (8 ) (13 ) Comprehensive income attributable to Discovery, Inc. $ 734 $ 739 $ 739 $ 541 $ 493 $ (2,512 ) $ 734 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (100 ) $ (14 ) $ (8 ) $ 156 $ 405 $ 277 $ — $ 716 Investing Activities Business acquisitions, net of cash acquired (8,714 ) 54 — — — 95 — (8,565 ) Payments for investments — — — (10 ) (45 ) 7 — (48 ) Proceeds from dispositions, net of cash disposed — — — — 107 — — 107 Purchases of property and equipment — — — (12 ) (56 ) (14 ) — (82 ) Proceeds from derivative instruments, net — — — — 1 — — 1 Inter-company distributions, and other investing activities, net — 7 — 8 5 (8 ) (8 ) 4 Cash (used in) provided by investing activities (8,714 ) 61 — (14 ) 12 80 (8 ) (8,583 ) Financing Activities Commercial paper borrowings, net — — — 579 — — — 579 Principal repayments of revolving credit facility — — — — (50 ) — — (50 ) Borrowings under term loan facilities — — — 2,000 — — — 2,000 Principal (repayments) borrowings of term loans — — — (1,500 ) — — — (1,500 ) Principal repayments of capital lease obligations — — — (4 ) (17 ) (4 ) — (25 ) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — (19 ) (2 ) (38 ) — (59 ) Share-based plan proceeds, net 26 — — — — — — 26 Borrowings under program financing line of credit — — — 23 — — — 23 Inter-company contributions and other financing activities, net 8,788 — 8 (7,996 ) (589 ) (236 ) 8 (17 ) Cash provided by (used in) financing activities 8,814 — 8 (6,917 ) (658 ) (278 ) 8 977 Effect of exchange rate changes on cash and cash equivalents — — — — (22 ) (5 ) — (27 ) Net change in cash and cash equivalents — 47 — (6,775 ) (263 ) 74 — (6,917 ) Cash and cash equivalents, beginning of period — — — 6,800 509 — — 7,309 Cash and cash equivalents, end of period — 47 — 25 246 74 — 392 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash provided by (used in) operating activities $ 37 $ (5 ) $ (22 ) $ 433 $ — $ — $ 443 Investing Activities Payments for investments — — (7 ) (263 ) — — (270 ) Purchases of property and equipment — — (26 ) (52 ) — — (78 ) Distributions from equity method investees — — — 18 — — 18 Proceeds from dispositions, net of cash disposed — — — 29 — — 29 Proceeds from derivative instruments, net — — — 5 — — 5 Other investing activities, net — — 27 3 — (27 ) 3 Cash used in investing activities — — (6 ) (260 ) — (27 ) (293 ) Financing Activities Commercial paper borrowings, net — — 25 — — — 25 Borrowings under revolving credit facility — — 350 — — — 350 Principal repayments of revolving credit facility — — (200 ) — — — (200 ) Borrowings from debt, net of discount and including premiums — — 659 — — — 659 Principal repayments of debt, including discount payment and premiums to par value — — (650 ) — — — (650 ) Principal repayments of capital lease obligations — — (3 ) (16 ) — — (19 ) Repurchases of stock (501 ) — — — — — (501 ) Cash settlement of common stock repurchase contracts 58 — — — — — 58 Distributions to redeemable noncontrolling interests — — — (20 ) — — (20 ) Share-based plan proceeds, net 11 — — — — — 11 Inter-company contributions and other financing activities, net 395 5 (165 ) (270 ) — 27 (8 ) Cash (used in) provided by financing activities (37 ) 5 16 (306 ) — 27 (295 ) Effect of exchange rate changes on cash and cash equivalents — — — 51 — — 51 Net change in cash and cash equivalents — — (12 ) (82 ) — — (94 ) Cash and cash equivalents, beginning of period — — 20 280 — — 300 Cash and cash equivalents, end of period $ — $ — $ 8 $ 198 $ — $ — $ 206 |
Description of Business and B28
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Discovery and its majority-owned subsidiaries in which a controlling interest is maintained. For each non-wholly owned subsidiary, the Company evaluates its ownership and other interests to determine whether it should consolidate the entity or account for its ownership interest as an investment. As part of its evaluation, the Company makes judgments in determining whether the entity is a variable interest entity ("VIE") and, if so, whether it is the primary beneficiary of the VIE and is thus required to consolidate the entity. (See Note 3.) Inter-company accounts and transactions between consolidated entities have been eliminated in consolidation. |
Basis of Presentation | Unaudited Interim Financial Statements These consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles (“GAAP”) applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Discovery’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Form 10-K”). |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that affect the amounts and disclosures reported in the consolidated financial statements and accompanying notes. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change as actual results may differ materially from those estimates. These estimates are sometimes complex, sensitive to changes in assumptions and may require fair value determinations using Level 3 fair value measurements. Estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, allowances for doubtful accounts, content rights, depreciation and amortization, business combinations, share-based compensation, defined benefit plans, income taxes, other financial instruments, contingencies and the determination of whether the Company is the primary beneficiary of entities in which it holds variable interests. |
Preferred Stock Exchange | Preferred Stock Exchange Pursuant to the Preferred Share Exchange Agreement (the "Exchange Agreement") with Advance/Newhouse Programming Partnership ("Advance/Newhouse") on July 30, 2017 , Discovery agreed to issue newly designated shares of Series A-1 and Series C-1 preferred stock in exchange for all outstanding shares of Discovery's Series A and Series C convertible participating preferred stock (see Note 9), historical basic and diluted earnings per share available to Series C-1 preferred stockholders, previously Series C preferred stockholders, has changed. The transactions contemplated by the Exchange Agreement were completed on August 7, 2017 . Prior to the Exchange Agreement, Series C convertible preferred stock was convertible into Series C common stock at a conversion rate of 2.0 shares of Series C common stock for each share of Series C preferred stock. Following the exchange, the Series C-1 preferred stock is convertible into Series C common stock at a conversion rate of 19.3648 shares of Series C common stock for each share of Series C-1 preferred stock. As such, the Company has retrospectively recast basic and diluted earnings per share information for Series C preferred stock for the three and six months ended June 30, 2017 in order to conform with per share earnings that would have been available consistent with the ratios provided for the Series C-1 preferred stock. (See Note 14.) The Exchange Agreement did not impact historical basic and diluted earnings per share attributable to the Company's Series A, B and C common stockholders. |
Accounting and Reporting Pronouncements Adopted and Not Yet Adopted | Accounting and Reporting Pronouncements Adopted Recognition and Measurement of Financial Instruments ("ASU 2016-01") On January 1, 2018 , the Company adopted new guidance that enhances the reporting model for financial instruments. The new guidance impacted the financial statements as follows: • Gains and losses on common stock investments with readily determinable fair values are now recorded in other expense, net. Previously, the Company recorded these gains and losses in other comprehensive income ("OCI"). The Company adopted this guidance on a modified retrospective basis and recorded a transition adjustment to reclassify accumulated other comprehensive income to retained earnings of $26 million , net of tax, as of January 1, 2018 . The new guidance eliminates the available-for-sale ("AFS") classification for common stock investments. (See Note 3 and Note 9.) • Upon adoption of ASU 2016-01, the Lionsgate Collar, as defined in Note 3, no longer receives the hedge accounting designation. There is no change to the manner in which movements in fair value of these instruments will be reflected in the financial statements, as gains and losses will continue to be recorded as a component of other expense, net on the consolidated statements of operations. (See Note 7.) • For equity interests without readily determinable fair values previously accounted for under the cost method, the Company has elected to apply the "measurement alternative" prospectively. Under this election, investments are recorded at cost, less impairment, adjusted for subsequent observable price changes as of the date that an observable transaction takes place. The Company will recognize observable price changes as adjustments to fair values of these investments as a component of other expense, net. (See Note 3 and Note 4.) In addition, companies are required to perform a qualitative assessment each reporting period to identify impairments under a single-step model. When a qualitative assessment indicates that an impairment exists, the Company will need to estimate the fair value of the investment and recognize in current earnings an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and ASU 340-40, Other Assets and Deferred Costs ("Topic 606"), which updates numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance also addresses the accounting for costs incurred as part of obtaining or fulfilling a contract with a customer. The guidance in this Subtopic requires that costs of obtaining a contract be recognized as an asset and amortized as goods and services are transferred to the customer, as long as the costs are expected to be recovered. On January 1, 2018 , the Company adopted ASC Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018 . Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Following the modified retrospective approach for the adoption of this accounting guidance, the Company recorded an increase to opening retained earnings of $7 million as of January 1, 2018 , due to the cumulative impact of adopting Topic 606. The impact relates to the capitalization of sales commissions for long-term education-based services for our Education Business, which was disposed of as of April 30, 2018 . (See Note 2.) For the three and six months ended June 30, 2018 , the total amortization of capitalized sales commissions recorded as a component of cost of revenues was immaterial. There was no impact to revenue as a result of applying Topic 606 for the three and six months ended June 30, 2018 . (See Note 11.) Income Taxes In October 2016, the FASB issued guidance that simplifies the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new guidance includes requirements to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, and therefore eliminates the exception for an intra-entity transfer of an asset other than inventory. The Company adopted the new standard effective January 1, 2018 , and there was no material impact on the consolidated financial statements upon adoption. Clarifying the Definition of a Business On January 1, 2018 , the Company adopted new FASB guidance that amends the definition of a business and provides a threshold which must be considered to determine whether a transaction is an acquisition (or disposal) of an asset or a business. Under the previous accounting guidance, the minimum inputs and processes required for a “set” of assets and activities to meet the definition of a business was not specified. That lack of clarity led to broad interpretations of the definition of a business. Under the new guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset (or group of similar assets), the assets acquired would not represent a business. In addition, in order to be considered a business, an acquisition would have to include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. This guidance also narrows the definition of outputs by more closely aligning it with how outputs are described in the revenue recognition guidance. Compensation - Retirement Benefits On March 10, 2017 , the FASB issued new accounting guidance related to the presentation of net periodic pension costs and net periodic postretirement benefit costs, which requires employers sponsoring postretirement benefit plans to disaggregate the service cost component from the other components of net benefit cost. The standard also provides explicit guidance on how to present the service cost and other components of net benefit cost in the statement of operations and allows only the service cost component of net benefit cost to be eligible for capitalization. In conjunction with the acquisition of Scripps Networks, the Company evaluated the accounting for the Scripps Networks qualified defined benefit pension plan ("Pension Plan") and the Scripps Networks non-qualified unfunded Supplemental Executive Retirement Plan ("SERP"). As the Pension Plan was frozen effective December 31, 2009 and the Plan sponsor no longer grants credits to participants for service costs, the updated guidance on service costs is not applicable. The presentation as required by this guidance is reflected within the employee benefit plans footnote disclosures. (See Note 12.) Accounting and Reporting Pronouncements Not Yet Adopted Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued updated guidance which permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of the 2017 Tax Cuts and Jobs Act ("TCJA") to retained earnings for each period in which the effect of the change is recorded. The update also requires entities to disclose their accounting policy for releasing income tax effects from accumulated other comprehensive income. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2018 , with early adoption permitted. The Company is currently evaluating the impact that the pronouncement will have on our consolidated financial statements. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued significant amendments to hedge accounting which expand the eligibility for hedge accounting to more financial and nonfinancial hedging strategies. The guidance is intended to align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. In addition, the guidance amends the presentation and disclosure requirements and changes how companies assess effectiveness. The updated guidance is effective for fiscal years beginning after December 15, 2018 , with early adoption permitted. The Company expects to adopt the new guidance in the third quarter of 2018 with an effective date of January 1, 2018. Upon adoption, the Company will switch from the forward method to the spot method to assess hedge effectiveness for cross-currency swaps by de-designating and re-designating its net investment hedging relationships. The Company believes the spot method is an improved method for assessing effectiveness as it better matches the spot rate changes of the net investment. The Company will exclude the portion of the change in fair value related to cross-currency basis spreads from the assessment of hedge effectiveness and will amortize the excluded component into earnings over the life of the derivative. Previous gains and losses incurred under the forward method will remain in other comprehensive (loss) income under the currency translation adjustments component and will be reclassified to earnings when the net investment is sold or liquidated. The Company does not anticipate that the new standard will have a material impact on our consolidated financial statements, including the cumulative-effect adjustment required upon adoption. Goodwill Under the current accounting guidance, the quantitative goodwill impairment test is performed using a two-step process. The first step of the process is to compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the quantitative impairment test is not necessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the quantitative goodwill impairment test is required to be performed to measure the amount of impairment loss, if any. The second step of the quantitative goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. In other words, the estimated fair value of the reporting unit’s identifiable net assets excluding goodwill is compared to the fair value of the reporting unit as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. In January 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The new guidance eliminates Step 2 from the goodwill impairment test, and eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. Therefore, an entity will recognize impairment charges for the amount by which the carrying amount exceeds the reporting unit's fair value, and the same impairment assessment applies to all reporting units. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 . The amendments in this update must be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019 . The Company is currently evaluating the impact that the pronouncement will have on the consolidated financial statements. Leases In February 2016 , the FASB issued guidance on leases that will require lessees to recognize almost all of their leases on the balance sheet by recording a right-of-use asset and liability. The new standard will be effective for reporting periods beginning after December 15, 2018 , and the new accounting guidance may be applied at the beginning of the earliest comparative period presented in the year of adoption or at effective date without applying the provisions of the new guidance to comparative periods presented. The Company is currently evaluating the impact that the pronouncement will have on the consolidated financial statements; however, it is expected that assets and liabilities will increase materially when operating leases are recorded under the new standard. The method of transition will be determined when the Company has completed its evaluation. |
Concentrations Risk | Concentrations Risk Customers The Company has long-term contracts with distributors around the world. For the U.S. Networks segment, more than 96% of distribution revenue comes from the Company's largest 10 distributors in the U.S. For the International Networks segment, approximately 39% of distribution revenue comes from the Company's largest 10 distributors outside of the U.S. Agreements in place with the 10 largest cable and satellite operators in the U.S. Networks and International Networks expire at various times from 2018 through 2024 . Although the Company seeks to renew its agreements with its distributors prior to expiration of a contract, a delay in securing a renewal that results in a service disruption, a failure to secure a renewal or a renewal on less favorable terms may have a material adverse effect on the Company’s financial condition and results of operations. Not only could the Company experience a reduction in distribution revenue, but it could also experience a reduction in advertising revenue, as viewership is impacted by affiliate subscriber levels. No individual customer accounted for more than 10% of total consolidated revenues for the three and six months ended June 30, 2018 or 2017 . As of June 30, 2018 and December 31, 2017 , the Company’s trade receivables did not represent a significant concentration of credit risk as the customers and markets in which the Company operates are varied and dispersed across many geographic areas. Financial Institutions Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk. The Company performs periodic evaluations of the relative credit standing of the financial institutions and attempts to limit exposure with any one institution. Additionally, the Company has cash and cash equivalents held by its foreign subsidiaries. Under the TCJA, the Company is subject to U.S. taxes for the deemed repatriation of certain cash balances held by foreign corporations. The Company intends to continue to permanently reinvest these funds outside of the U.S., and current plans do not demonstrate a need to repatriate them to fund our U.S. operations. Lender Counterparties There is a risk that the counterparties associated with the Company’s revolving credit facility will not be available to fund as obligated under the terms of the facility and that the Company may, at the time of such unavailability to fund, have limited or no access to the commercial paper market. If funding under the revolving credit facility is unavailable, the Company may have to acquire a replacement credit facility from different counterparties at a higher cost or may be unable to find a suitable replacement. Typically, the Company seeks to manage such risks from its revolving credit facility by contracting with experienced large financial institutions and monitoring the credit quality of its lenders. As of June 30, 2018 , the Company did not anticipate nonperformance by any of its counterparties. Counterparty Credit Risk The Company is exposed to the risk that the counterparties to outstanding derivative financial instruments will default on their obligations. The Company manages these credit risks by evaluating and monitoring the creditworthiness of, and concentration of risk with, the respective counterparties. In this regard, credit risk associated with outstanding derivative financial instruments is spread across a relatively broad counterparty base of banks and financial institutions. In connection with the Company's economic hedge of certain investments classified as common stock investments with readily determinable fair value, the Company has pledged shares as collateral to the derivative counterparty. (See Note 3.) The Company also has a limited number of arrangements where collateral is required to be posted in the instance that certain fair value thresholds are exceeded. As of June 30, 2018 , $3 million of collateral has been posted by the Company under these arrangements and classified as other noncurrent assets in the consolidated balance sheets. As of June 30, 2018 , our exposure to counterparty credit risk included derivative assets with an aggregate fair value of $58 million . (See Note 4.) |
Fair Value Measurements | Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified in the following three categories: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Valuations derived from techniques in which one or more significant inputs are unobservable. |
Derivatives | The Company uses derivative financial instruments to modify its exposure to market risks from changes in foreign currency exchange rates and interest rates. At the inception of a derivative contract, the Company designates the derivative as one of four types based on the Company's intentions and belief as to its likely effectiveness as a hedge. These four types are: (1) 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"), (2) a hedge of net investments in foreign operations ("net investment hedge"), (3) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), or (4) an instrument with no hedging designation. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. |
Derivatives, Hedge Discontinuances, Anticipated Transactions | The ineffective portion of any previous gains and losses recorded in accumulated other comprehensive loss on the consolidated balance sheets are reclassified immediately to other expense, net on the consolidated statements of operations. |
Redeemable Noncontrolling Interest | Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values remeasured at the period end foreign exchange rates (i.e., the "floor"). Adjustments to the carrying amount of redeemable noncontrolling interests to redemption value as a result of changes in exchange rates are reflected in currency translation adjustments, a component of other comprehensive (loss) income ; however, such currency translation adjustments to redemption value are allocated to Discovery stockholders only. Redeemable noncontrolling interest adjustments of redemption value to the floor are reflected in retained earnings. |
Revenues | REVENUES The Company generates revenues principally from: (i) distribution revenues for fees charged to distributors of its network content, which include cable, direct-to-home ("DTH") satellite, telecommunications and digital service providers and bundled long-term content arrangements, (ii) advertising revenue for advertising sold on its television networks and websites and (iii) other revenue related to several items including: (a) production studios content development and services, (b) affiliate and advertising sales representation services and (c) the licensing of the Company's brands for consumer products. Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration that the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax. However, certain revenues include taxes that customers pay to taxing authorities on the Company’s behalf, such as foreign withholding tax. Revenue recognition for each source of revenue is also based on the following policies. Distribution Cable operators, DTH satellite operators and telecommunications service providers typically pay a per-subscriber fee for the right to distribute the Company’s programming under the terms of distribution contracts. The majority of the Company’s distribution fees are collected monthly throughout the year and distribution revenue is recognized over the term of the contracts based on contracted programming rates and reported subscriber levels. The amount of distribution fees due to the Company is reported by distributors based on actual subscriber levels. Such information is generally not received until after the close of the reporting period. In these cases, the Company estimates the number of subscribers receiving the Company’s programming to estimate royalty revenue. Historical adjustments to recorded estimates have not been material. Distribution revenue from fixed-fee contracts is recognized over the contract term based on the continuous delivery of the content to the affiliate. Any monetary incentives provided to distributors are recognized as a reduction of revenue over the service term. Revenues associated with digital distribution arrangements are recognized when the Company transfers control of the content and the rights to distribute the content to the customer. Although the delivery of linear feeds and digital direct-to-consumer products, such as video on demand (“VOD”), are considered distinct performance obligations, VOD offerings generally match the programs that are airing on the linear network. Therefore, the Company recognizes revenue for licensing arrangements that include both linear feeds and VOD as the license fee is earned. Advertising Advertising revenues are principally generated from the sale of bundled commercial time on linear and digital platforms. A substantial portion of the advertising contracts in the U.S. and certain international markets guarantee the advertiser a minimum audience level that either the program in which their advertisements are aired or the advertisement will reach. Revenues are recognized based on the audience level delivered multiplied by the average price per impression. The Company provides the advertiser with advertising until the guaranteed audience level is delivered. As such, revenues are deferred until the guaranteed audience level is delivered or the rights associated with the guarantee lapse, which is less than a year. Audience guarantees are initially developed internally based on planned programming, historical audience levels, the success of pilot programs, and market trends. Invoiced advertising revenue receivables may exceed the value of the audience delivery, resulting in deferred revenue balances. Advertising contracts, which are generally short-term, are billed monthly, with payments due shortly after the invoice date. Actual audience and delivery information is published by independent ratings services. In certain instances, the independent ratings information is not received until after the close of the reporting period. In these cases, reported advertising revenue and related deferred revenue are based upon the Company’s estimates of the audience level delivered. Historical adjustments to recorded estimates have not been material. For contracts without an audience guarantee, advertising revenues are recognized as each spot airs. Advertising revenues from digital platforms are recognized as impressions are delivered or the services are performed. The airing of a campaign of advertising spots with a guaranteed audience level is considered a single, distinct performance obligation. The airing of individual spots without a guaranteed audience level are each distinct, individual performance obligations. The Company allocates the consideration to each spot based on their relative standalone selling prices. Other Royalties from brand licensing arrangements are earned as products are sold by the licensee. License fees from the sublicensing of sports rights are recognized when the rights become available for airing. Revenue from the production studios segment is recognized when the content is delivered and available for airing by the customer. Revenue for curriculum-based services is recognized ratably over the contract term as service is provided. Multiple Performance Obligations Contracts with customers may include multiple distinct performance obligations. For example, distribution contracts may include VOD and digital direct-to-consumer products in addition to the linear feed delivery. Advertising contracts may include sponsorship, production, or product integration in addition to the airing of spots and the satisfaction of an audience guarantee. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price, which is determined based on the cost plus an expected margin. In the case of VOD and linear feed, performance obligations satisfaction occurs at the same time. Therefore, any transaction price allocated to the VOD performance obligation would be recognized using the same pattern of recognition as the linear feed. Deferred Revenue Deferred revenue consists of cash received for television advertising for which the guaranteed viewership has not been provided, product licensing arrangements in which fee collections are in excess of the license value provided, advanced fees received related to the sublicensing of Olympic rights and advanced billings to subscribers for access to the Company’s curriculum-based streaming services. The amounts classified as current are expected to be earned within the next year. Payment terms vary by the type and location of the customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Revenue Recognition The following table presents the Company’s revenues disaggregated by revenue source (in millions). Management uses these categories of revenue to evaluate the performance of its businesses and to assess its financial results and forecasts. Three Months Ended June 30, 2018 2017 U.S. Networks International Networks Education and Other U.S. Networks International Networks Education and Other Revenues: Distribution $ 654 $ 532 $ — $ 400 $ 457 $ — Advertising 1,090 473 — 472 333 — Other 36 46 14 18 21 44 Totals $ 1,780 $ 1,051 $ 14 $ 890 $ 811 $ 44 Six Months Ended June 30, 2018 2017 U.S. Networks International Networks Education and Other U.S. Networks International Networks Education and Other Revenues: Distribution $ 1,168 $ 1,069 $ — $ 808 $ 904 $ — Advertising 1,717 858 — 877 615 — Other 69 222 49 34 39 81 Totals $ 2,954 $ 2,149 $ 49 $ 1,719 $ 1,558 $ 81 Transaction Price Allocated to Remaining Performance Obligations Most of the Company's distribution contracts are licenses of functional intellectual property where revenue is derived from royalty-based arrangements, for which the guidance allows for the application of a practical expedient instead of estimating incremental royalty contract revenue. However, there are certain other distribution arrangements that are fixed price or contain minimum guarantees that extend beyond one year. The transaction price allocated to remaining performance obligations within these fixed price or minimum guarantee distribution revenue contracts was $1.8 billion as of June 30, 2018 , and is expected to be recognized over the next ten years. The Company's content licensing contracts and sports sublicensing deals are licenses of functional intellectual property. Certain of these arrangements extend beyond one year. The transaction price allocated to remaining performance obligations on these long-term contracts was $535 million as of June 30, 2018 , and is expected to be recognized over the next seven years. The Company's brand licensing contracts are licenses of symbolic intellectual property. Certain of these arrangements extend beyond one year. The transaction price allocated to remaining performance obligations on these long-term contracts was $79 million as of June 30, 2018 , and is expected to be recognized over the next fifteen years. Due to the use of the practical expedients noted below, the above disclosure does not include information related to advertising since the duration of these arrangements is less than one year. Contract Balances A receivable is recorded when there is an unconditional right to consideration based on a contract with a customer. A contract liability, deferred revenue, is recorded when cash is received in advance of the Company's performance. The following table presents (in millions) the Company’s opening and closing balances of receivables and deferred revenues, as well as activity since the beginning of the period. December 31, 2017 Additions (b) Reductions (c) Foreign Currency June 30, 2018 Accounts receivable $ 1,838 5,933 (4,999 ) (25 ) $ 2,747 Deferred revenues: Current 255 699 (668 ) (9 ) 277 Long term (a) 109 9 (21 ) — 97 December 31, 2016 Additions Reductions (d) Foreign Currency June 30, 2017 Accounts receivable $ 1,495 3,382 (3,139 ) 20 $ 1,758 Deferred revenues: Current 163 388 (388 ) 30 193 Long term (a) 122 9 (39 ) 3 95 (a) Long term deferred revenues is a component of other noncurrent liabilities on the consolidated balance sheets. (b) This column includes Scripps Networks accounts receivable and deferred revenues balances of $783 million and $122 million , respectively, as of March 6, 2018 , the date of the acquisition. (See Note 2.) (c) This column includes the impact of the sale of the Education Business on April 30, 2018 . (See Note 2.) As of the sale date, accounts receivable and deferred revenue balances were $32 million and $74 million , respectively. (d) This column includes the impact of the sale of Raw and Betty on April 28, 2017 . (See Note 2.) As of the sale date, accounts receivable and deferred revenue balances were $6 million and $17 million , respectively. Practical Expedients and Exemptions With the exception of commissions related to certain education products, sales commissions are generally expensed as incurred because contracts for which the sales commission are generated are one year or less or are not material. Sales commissions are recorded as a component of cost of revenues on the consolidated statements of operations. The financing component of content licensing arrangements is not capitalized, because the period between delivery of the license and customer payment is one year or less or is not material. The value of unsatisfied performance obligations is not disclosed for: (i) contracts involving variable consideration for which revenues are recognized in accordance with the usage-based royalty exception, and (ii) contracts with an original expected length of one year or less, such as advertising contracts. |
Earnings Per Share | The computation of the diluted earnings per share of Series A, B and C common stockholders assumes the conversion of Series A-1 and C-1 convertible preferred stock, while the diluted earnings per share amounts of Series C-1 convertible preferred stock does not assume conversion of those shares. The weighted average number of diluted shares outstanding adjusts the weighted average number of shares of Series A, B and C common stock outstanding for the potential dilution that would occur if common stock equivalents, including convertible preferred stock and share-based awards, were converted into common stock or exercised, calculated using the treasury stock method. Series A, B and C diluted common stock includes the impact of the conversion of Series A-1 preferred stock, the impact of the conversion of Series C-1 preferred stock, and the impact of share-based compensation to the extent it is not anti-dilutive. In calculating earnings per share, the Company follows the two -class method, which distinguishes between classes of securities based on the proportionate participation rights of each security type in the Company's undistributed income. The Company's Series A, B and C common stock and the Series C-1 convertible preferred stock are treated as one class for purposes of applying the two-class method, because they have substantially equal rights and share equally on an as-converted basis with respect to income available to Discovery, Inc. |
Segment Reporting | The accounting policies of the reportable segments are the same as the Company’s, except that certain inter-segment transactions that are eliminated for consolidation are not eliminated at the segment level. Inter-segment transactions primarily include advertising and content purchases. |
Adjusted OIBDA | The Company believes Adjusted OIBDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes mark-to-market share-based compensation, restructuring and other charges, certain impairment charges, gains and losses on business and asset dispositions and Scripps Networks transaction and integration costs from the calculation of Adjusted OIBDA due to their impact on comparability between periods. The Company also excludes depreciation of fixed assets and amortization of intangible assets, as these amounts do not represent cash payments in the current reporting period. |
Description of Business and B29
Description of Business and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Impact of the Preferred Stock Modification on Earnings per Share | The table below sets forth the impact of the preferred stock modification to the Company's calculated basic earnings per share for the three and six months ended June 30, 2017 . Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Pre-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 0.65 $ 1.02 Series C-1 convertible preferred stockholders $ 1.30 $ 2.04 Post-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 0.65 $ 1.02 Series C-1 convertible preferred stockholders $ 12.54 $ 19.65 The table below sets forth the Company's calculated earnings per share. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic net income per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.30 $ 0.65 $ 0.31 $ 1.02 Series C-1 convertible preferred stockholders $ 5.73 $ 12.54 $ 5.93 $ 19.65 Diluted net income per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.30 $ 0.64 $ 0.31 $ 1.01 Series C-1 convertible preferred stockholders $ 5.72 $ 12.50 $ 5.92 $ 19.56 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Components of the Acquisition | The following table summarizes the components of the aggregate consideration paid for the acquisition of Scripps Networks (in millions of dollars and shares, except for per share amounts, share conversion ratio and stock option conversion ratio) as of March 6, 2018 . Scripps Networks equity Scripps Networks shares outstanding 131 Cash consideration per Scripps Networks share $ 65.82 Cash portion of consideration $ 8,590 Scripps Networks shares outstanding 131 Share conversion ratio per Scripps Networks share 1.0584 Discovery Series C common stock 138 Discovery Series C common stock price per share $ 23.01 Equity portion of consideration $ 3,179 Shares awarded under Scripps Networks share-based compensation programs 3 Scripps Networks share-based compensation awards converting to cash 2 Average cash consideration per share awarded less applicable exercise price $ 46.90 Cash portion of consideration $ 88 Scripps Networks share-based compensation awards 1 Share-based compensation conversion ratio (based on intrinsic value per award) 3 Discovery Series C common stock issued (1) or share-based compensation converted (2) 3 Average equity value (intrinsic value of Discovery Series C common stock or options to be issued) $ 15.19 Share-based compensation equity value $ 51 Less: post-combination compensation expense $ (12 ) Equity portion of consideration $ 39 Scripps Networks transaction costs paid by Discovery $ 117 Total consideration paid $ 12,013 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary fair value of assets acquired and liabilities assumed, as well as a reconciliation to cash consideration transferred is presented in the table below (in millions). Preliminary November 30, 2017 Intangible assets $ 295 Content rights 176 Accounts receivable 84 Other assets 26 Other liabilities (230 ) Net assets acquired $ 351 Goodwill 136 Remeasurement gain on previously held equity interest (33 ) Carrying value of previously held equity interest (329 ) Redeemable noncontrolling interest (55 ) Cash consideration transferred $ 70 The preliminary fair value of assets acquired and liabilities assumed, measurement period adjustments, as well as a reconciliation to consideration paid is presented in the table below (in millions). Preliminary March 6, 2018 Measurement Period Adjustments Updated Preliminary March 6, 2018 Accounts receivable $ 783 $ — $ 783 Other current assets 421 (24 ) 397 Content rights 1,088 — 1,088 Property and equipment 315 — 315 Goodwill 6,003 213 6,216 Intangible assets 9,175 — 9,175 Equity method investments, including note receivable 870 (132 ) 738 Other noncurrent assets 111 35 146 Current liabilities assumed (494 ) (133 ) (627 ) Debt assumed (2,481 ) — (2,481 ) Deferred income taxes (1,695 ) 8 (1,687 ) Other noncurrent liabilities (383 ) 33 (350 ) Noncontrolling interests (1,700 ) — (1,700 ) Total consideration paid $ 12,013 $ — $ 12,013 The fair value of the assets acquired and liabilities assumed is presented in the table below (in millions). Preliminary September 25, 2017 Measurement Period Adjustments Final September 25, 2017 Goodwill $ 59 $ 16 $ 75 Intangible assets 71 (18 ) 53 Property plant and equipment, net 16 1 17 Other assets acquired 6 — 6 Liabilities assumed (8 ) 1 (7 ) Net assets acquired $ 144 $ — $ 144 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The table below presents a summary of intangible assets acquired and weighted average estimated useful life of these assets. Fair Value Weighted Average Useful Life in Years Trademarks and trade names $ 1,225 10 Advertiser relationships 4,995 10 Advertising backlog 280 1 Affiliate relationships 2,455 12 Broadcast licenses 220 6 Total intangible assets acquired $ 9,175 |
Schedule of Business Acquisition, Pro Forma Information | The following table presents their revenue and earnings as reported within the consolidated financial statements (in millions). Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Revenues: Distribution $ 286 $ 394 Advertising 742 986 Other 38 66 Total revenues $ 1,066 $ 1,446 Net income available to Discovery, Inc. $ 78 $ 28 The pro forma adjustments were based on available information and upon assumptions that the Company believes are reasonable to reflect the impact of these acquisitions on the Company's historical financial information on a supplemental pro forma basis (in millions). The following table presents the Company's pro forma combined revenues and net income (in millions, except per share value). Three Months Ended Six Months Ended June 30, 2018 2017 2018 2017 Revenues $ 2,845 $ 2,769 $ 5,774 $ 5,338 Net income available to Discovery, Inc. 260 424 348 583 Net income per share - basic 0.36 0.59 0.48 0.81 Net income per share - diluted 0.36 0.59 0.48 0.81 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Summary of Investment Holdings | The Company’s investments consisted of the following (in millions). Category Balance Sheet Location June 30, 2018 December 31, 2017 Time deposits Cash and cash equivalents $ — $ 1,305 Trading securities: Money market funds Cash and cash equivalents 31 2,707 Mutual funds Prepaid and other current assets 37 182 Mutual funds Other noncurrent assets 198 — Equity method investments: Equity investments Equity method investment 927 335 Note receivable Equity method investment 96 — Equity Investments: Common stock investments with readily determinable fair values Other noncurrent assets 121 164 Equity investments without readily determinable fair value Other noncurrent assets 384 295 Total investments $ 1,794 $ 4,988 |
Summary of Significant Subsidiaries | The following table presents renewable energy investments losses and associated tax benefits (in millions). Consolidated Statements of Operations Classification Three Months Ended June 30, Six Months Ended June 30, Renewable Energy Investments 2018 2017 2018 2017 Loss on renewable energy investments Loss from equity investees, net $ (8 ) $ (43 ) $ (16 ) $ (126 ) Tax benefit Equity passive loss Income tax expense $ 2 $ 15 $ 4 $ 46 Investment tax credits Income tax expense 3 41 3 66 Total tax benefit $ 5 $ 56 $ 7 $ 112 |
Schedule of Common Stock Investments with Readily Determinable Fair Value | The accumulated amounts associated with the components of the Company's common stock investments with readily determinable fair values, which are included in other non-current assets, are summarized in the table below (in millions). June 30, 2018 December 31, 2017 Cost $ 195 $ 195 Accumulated change in the value of: Equity securities recognized in other expense, net (44 ) (1 ) Unhedged equity securities recorded in other comprehensive income (a) — 32 Reclassification of accumulated other comprehensive income to retained earnings (a) 32 — Other-than-temporary impairment (62 ) (62 ) Carrying value $ 121 $ 164 (a) As of January 1, 2018 , upon adoption of ASU 2016-01, the Company recorded a transition adjustment to reclassify accumulated other comprehensive income associated with Lionsgate shares in the amount of $32 million pre-tax ( $26 million , net of tax) to retained earnings. Previously, amounts were recorded as a component of other comprehensive income. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Categories | Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified in the following three categories: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Valuations derived from techniques in which one or more significant inputs are unobservable. |
Schedule of Assets and Liabilities Measured on Recurring Basis | The tables below present assets and liabilities measured at fair value on a recurring basis (in millions). June 30, 2018 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Trading securities: Money market funds Cash and cash equivalents $ 31 $ — $ — $ 31 Mutual funds Prepaid expenses and other current assets 37 — — 37 Mutual funds Other noncurrent assets 198 — — 198 Equity investments with readily determinable fair value: Common stock Other noncurrent assets 121 — — 121 Derivatives: Cash flow hedges: Foreign exchange Prepaid expenses and other current assets — 28 — 28 Net investment hedges: Cross-currency swaps Other noncurrent assets — 6 — 6 No hedging designation: (a) Equity (Lionsgate Collar) Other noncurrent assets — 24 — 24 Assets held for sale Assets held for sale — 68 — 68 Total $ 387 $ 126 $ — $ 513 Liabilities Deferred compensation plan Accrued liabilities $ 37 $ — $ — $ 37 Deferred compensation plan Other noncurrent liabilities 208 — — $ 208 Derivatives: Cash flow hedges: Foreign exchange Accrued liabilities — 3 — 3 Net investment hedges: Cross-currency swaps Accrued liabilities — 17 — 17 Cross-currency swaps Other noncurrent liabilities — 98 — 98 No hedging designation: Cross-currency swaps Accrued liabilities — 1 — 1 Cross-currency swaps Other noncurrent liabilities — 3 — 3 Total $ 245 $ 122 $ — $ 367 December 31, 2017 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Cash equivalents: Time deposits Cash and cash equivalents $ — $ 1,305 $ — $ 1,305 Trading securities: Money market funds Cash and cash equivalents 2,707 — — 2,707 Mutual funds Prepaid expenses and other current assets 182 — — 182 Equity investments with readily determinable fair value: (a) Common stock Other noncurrent assets 82 — — 82 Common stock - pledged Other noncurrent assets 82 — — 82 Derivatives: Cash flow hedges: Foreign exchange Prepaid expenses and other current assets — 7 — 7 Net investment hedges: Cross-currency swaps Other noncurrent assets — 3 — 3 Foreign exchange Prepaid expenses and other current assets — 2 — 2 Fair value hedges: (a) Equity (Lionsgate Collar) Other noncurrent assets — 13 — 13 Total $ 3,053 $ 1,330 $ — $ 4,383 Liabilities Deferred compensation plan Accrued liabilities $ 182 $ — $ — $ 182 Derivatives: Cash flow hedges: Foreign exchange Accrued liabilities — 12 — 12 Net investment hedges: Cross-currency swaps Accrued liabilities — 13 — 13 Cross-currency swaps Other noncurrent liabilities 98 98 Foreign exchange Accrued liabilities — 8 — 8 No hedging designation: Credit contracts Other noncurrent liabilities — 1 — 1 Cross-currency swaps Other noncurrent liabilities — 6 — 6 Total $ 182 $ 138 $ — $ 320 (a) Prior to January 1, 2018 , and the adoption of ASU 2016-01, the Company applied hedge accounting to the Lionsgate Collar. (See Note 1 and Note 7.) |
Content Rights (Tables)
Content Rights (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Content Rights | The table below presents the components of content rights (in millions). June 30, 2018 December 31, 2017 Produced content rights: Completed $ 5,264 $ 4,355 In-production 750 442 Coproduced content rights: Completed 772 745 In-production 71 27 Licensed content rights: Acquired 972 1,070 Prepaid (a) 167 181 Content rights, at cost 7,996 6,820 Accumulated content rights expense (4,380 ) (4,197 ) Total content rights, net 3,616 2,623 Current portion (358 ) (410 ) Noncurrent portion $ 3,258 $ 2,213 (a) Prepaid licensed content rights includes payments for rights to the Olympic games of $52 million that are reflected as noncurrent content rights and $83 million that are reflected as current content rights assets on the consolidated balance sheet as of June 30, 2018 and December 31, 2017 , respectively. |
Schedule of Content Expense | Content expense consisted of the following (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Content amortization $ 728 $ 446 $ 1,478 $ 901 Other production charges 112 76 272 141 Content impairments 104 6 182 9 Total content expense $ 944 $ 528 $ 1,932 $ 1,051 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The table below presents the components of outstanding debt (in millions). June 30, 2018 December 31, 2017 5.625% Senior notes, semi-annual interest, due August 2019 $ 411 $ 411 2.200% Senior notes, semi-annual interest, due September 2019 500 500 Floating rate notes, quarterly interest, due September 2019 400 400 2.750% Senior notes, semi-annual interest, due November 2019 500 — 2.800% Senior notes, semi-annual interest, due June 2020 600 — 5.050% Senior notes, semi-annual interest, due June 2020 789 789 4.375% Senior notes, semi-annual interest, due June 2021 650 650 2.375% Senior notes, euro denominated, annual interest, due March 2022 347 358 3.300% Senior notes, semi-annual interest, due May 2022 500 500 3.500% Senior notes, semi-annual interest, due June 2022 400 — 2.950% Senior notes, semi-annual interest, due March 2023 1,200 1,200 3.250% Senior notes, semi-annual interest, due April 2023 350 350 3.800% Senior notes, semi-annual interest, due March 2024 450 450 2.500% Senior notes, sterling denominated, annual interest, due September 2024 522 538 3.900% Senior notes, semi-annual interest, due November 2024 500 — 3.450% Senior notes, semi-annual interest, due March 2025 300 300 3.950% Senior notes, semi-annual interest, due June 2025 500 — 4.900% Senior notes, semi-annual interest, due March 2026 700 700 1.900% Senior notes, euro denominated, annual interest, due March 2027 694 717 3.950% Senior notes, semi-annual interest, due March 2028 1,700 1,700 5.000% Senior notes, semi-annual interest, due September 2037 1,250 1,250 6.350% Senior notes, semi-annual interest, due June 2040 850 850 4.950% Senior notes, semi-annual interest, due May 2042 500 500 4.875% Senior notes, semi-annual interest, due April 2043 850 850 5.200% Senior notes, semi-annual interest, due September 2047 1,250 1,250 Term loans 500 — Revolving credit facility 375 425 Commercial paper 579 — Program financing line of credit 23 — Capital lease obligations 279 225 Total debt 18,469 14,913 Unamortized discount, premium and debt issuance costs, net (140 ) (128 ) Debt, net of unamortized discount, premium and debt issuance costs 18,329 14,785 Current portion of debt (646 ) (30 ) Noncurrent portion of debt $ 17,683 $ 14,755 |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the impact of derivative financial instruments on the Company's consolidated balance sheets (in millions). There were no amounts eligible to be offset under master netting agreements as of June 30, 2018 and December 31, 2017 . June 30, 2018 December 31, 2017 Fair Value Fair Value Notional Prepaid expenses and other current assets Other non- current assets Accrued liabilities Other non- current liabilities Notional Prepaid expenses and other current assets Other non- current assets Accrued liabilities Other non- current liabilities Cash flow hedges: Foreign exchange $ 835 $ 28 $ — $ 3 $ — $ 817 $ 7 $ — $ 12 $ — Net investment hedges: (a) Cross-currency swaps 1,703 — 6 17 98 1,708 — 3 13 98 Foreign exchange — — — — — 303 2 — 8 — Fair value hedges: Equity (Lionsgate collar) (b) — — — — — 97 — 13 — — No hedging designation: Interest rate swaps 25 — — — — 25 — — — — Cross-currency swaps 64 — — 1 3 64 — — — 6 Equity (Lionsgate collar) (b) 97 — 24 — — — — — — — Credit contracts — — — — — 665 — — — 1 Total $ 28 $ 30 $ 21 $ 101 $ 9 $ 16 $ 33 $ 105 (a) Excludes £400 million of sterling notes ( $522 million equivalent at June 30, 2018 ) designated as a net investment hedge. (See Note 6.) (b) Upon adoption of ASU 2016-01 on January 1, 2018 , the Lionsgate Collar no longer receives the hedge accounting designation. (See Note 1 and Note 4.) |
Schedule of Derivative Instruments Designated as Cash Flow Hedges, Effect on Income and Other Comprehensive (Loss) Income | The following table presents the pretax impact of derivatives designated as cash flow hedges on income and other comprehensive (loss) income (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Gains (losses) recognized in accumulated other comprehensive loss: Foreign exchange - derivative adjustments $ 39 $ (18 ) $ 29 $ (31 ) Gains (losses) reclassified into income from accumulated other comprehensive loss (effective portion): Foreign exchange - distribution revenue 3 (4 ) 3 (7 ) Foreign exchange - advertising revenue (2 ) (1 ) (1 ) (1 ) Foreign exchange - costs of revenues — — (4 ) 4 Interest rate - interest expense — — — (1 ) |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive (Loss) Income | The following table presents the pretax impact of derivatives designated as net investment hedges on other comprehensive (loss) income (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Currency translation adjustments: Cross-currency swaps - changes in fair value $ 54 $ (39 ) $ (2 ) $ (48 ) Cross-currency swaps - interest settlements — — 7 5 Foreign exchange - changes in fair value — — (1 ) — Sterling Notes - changes in foreign exchange rates 41 — 16 — Total other comprehensive income (loss) $ 95 $ (39 ) $ 20 $ (43 ) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the pretax impact of derivatives designated as fair value hedges on income, including offsetting changes in fair value of the hedged items and amounts excluded from the assessment of effectiveness (in millions). Upon adoption of ASU 2016-01 on January 1, 2018 , the Company no longer designates any of its derivatives as fair value hedges. As a result, there was no activity related to derivatives designated as fair value hedges for the three and six months ended June 30, 2018 . There were no amounts of ineffectiveness recognized on fair value hedges for the three and six months ended June 30, 2017 . Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Gains on changes in fair value of hedged AFS $ 4 $ 4 Gains on changes in the intrinsic value of equity contracts (4 ) (4 ) Fair value of equity contracts excluded from effectiveness assessment 3 1 Total in other expense, net $ 3 $ 1 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the pretax impact of derivatives not designated as hedges and recognized in other expense, net in the consolidated statements of operations (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cross-currency swaps $ 4 $ (2 ) $ — $ (3 ) Credit contracts — — (1 ) — Equity 1 — 11 — Total in other expense, net $ 5 $ (2 ) $ 10 $ (3 ) |
Redeemable Noncontrolling Int36
Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Beginning balance $ 419 $ 249 $ 413 $ 243 Cash distributions to redeemable noncontrolling interests (19 ) (17 ) (21 ) (20 ) Comprehensive income adjustments: Net income attributable to redeemable noncontrolling interests 5 6 11 12 Other comprehensive income attributable to redeemable noncontrolling interests — — — 1 Currency translation on redemption values (1 ) (1 ) 1 — Retained earnings adjustments: Adjustments of redemption values to the floor 6 — 6 1 Ending balance $ 410 $ 237 $ 410 $ 237 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Treasury Stock by Class | The table below presents a summary of common stock repurchases (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Series C Common Stock: Shares repurchased — 9.1 — 14.3 Purchase price $ — $ 241 $ — $ 381 |
Schedule of Preferred Stock Repurchase | The table below presents a summary of Series C convertible preferred stock repurchases made under the repurchase agreement (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Series C convertible preferred stock: Shares repurchased — 1.1 — 2.3 Purchase price $ — $ 60 $ — $ 120 |
Components of Other Comprehensive (Loss) Income | The table below presents the tax effects related to each component of other comprehensive (loss) income and reclassifications made in the consolidated statements of operations (in millions). Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Pretax Tax Net-of-tax Pretax Tax Net-of-tax Currency translation adjustments: Unrealized (losses) gains: Foreign currency $ (295 ) $ (10 ) $ (305 ) $ 109 $ 9 $ 118 Net investment hedges 95 — 95 (39 ) — (39 ) Reclassifications: Loss on disposition 4 — 4 12 — 12 Total currency translation adjustments (196 ) (10 ) (206 ) 82 9 91 AFS adjustments: (a) Unrealized gains — — — 9 — 9 Reclassifications to other expense, net: Hedged portion of AFS securities — — — (4 ) — (4 ) Total equity investment adjustments — — — 5 — 5 Derivative adjustments: Unrealized gains (losses) 39 (9 ) 30 (18 ) 5 (13 ) Reclassifications: Distribution revenue (3 ) — (3 ) 4 (1 ) 3 Advertising revenue 2 — 2 1 — 1 Total derivative adjustments 38 (9 ) 29 (13 ) 4 (9 ) Other comprehensive (loss) income adjustments $ (158 ) $ (19 ) $ (177 ) $ 74 $ 13 $ 87 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Pretax Tax Net-of-tax Pretax Tax Net-of-tax Currency translation adjustments: Unrealized (losses) gains Foreign currency $ (224 ) $ (3 ) $ (227 ) $ 180 $ 10 $ 190 Net investment hedges 20 — 20 (43 ) — (43 ) Reclassifications: Loss on disposition 4 — 4 12 — 12 Total currency translation adjustments (200 ) (3 ) (203 ) 149 10 159 AFS adjustments: (a) Unrealized gains — — — 8 — 8 Reclassifications to other expense, net: Hedged portion of AFS securities — — — (4 ) — (4 ) Total equity investment adjustments — — — 4 — 4 Derivative adjustments: Unrealized gains (losses) 29 (6 ) 23 (31 ) 10 (21 ) Reclassifications: Distribution revenue (3 ) — (3 ) 7 (2 ) 5 Advertising revenue 1 — 1 1 — 1 Costs of revenues 4 (1 ) 3 (4 ) 1 (3 ) Interest expense — — — 1 — 1 Total derivative adjustments 31 (7 ) 24 (26 ) 9 (17 ) Other comprehensive (loss) income adjustments $ (169 ) $ (10 ) $ (179 ) $ 127 $ 19 $ 146 (a) Effective January 1, 2018 , upon adoption of ASU 2016-01, unrealized gains and losses on equity investments with readily determinable fair values are recorded in other expense, net . The Company recorded a transition adjustment to reclassify prior period amounts in other comprehensive income to retained earnings . (See Note 1 and Note 3.) |
Schedule of Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The table below presents the changes in the components of accumulated other comprehensive loss , net of taxes (in millions). Three Months Ended June 30, 2018 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (612 ) $ — $ (1 ) $ (613 ) Other comprehensive (loss) income before reclassifications (210 ) — 30 (180 ) Reclassifications from accumulated other comprehensive loss to net income 4 — (1 ) 3 Other comprehensive (loss) income (206 ) — 29 (177 ) Ending balance $ (818 ) $ — $ 28 $ (790 ) Three Months Ended June 30, 2017 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (730 ) $ 10 $ 16 $ (704 ) Other comprehensive income (loss) before reclassifications 79 9 (13 ) 75 Reclassifications from accumulated other comprehensive loss to net income 12 (4 ) 4 12 Other comprehensive income (loss) 91 5 (9 ) 87 Ending balance $ (639 ) $ 15 $ 7 $ (617 ) Six Months Ended June 30, 2018 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (615 ) $ 26 $ 4 $ (585 ) Other comprehensive (loss) income before reclassifications (207 ) — 23 (184 ) Reclassifications from accumulated other comprehensive loss to net income 4 — 1 5 Other comprehensive (loss) income (203 ) — 24 (179 ) Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 — (26 ) — (26 ) Ending balance $ (818 ) $ — $ 28 $ (790 ) Six Months Ended June 30, 2017 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (797 ) $ 11 $ 24 $ (762 ) Other comprehensive income (loss) before reclassifications 147 8 (21 ) 134 Reclassifications from accumulated other comprehensive loss to net income 12 (4 ) 4 12 Other comprehensive income (loss) 159 4 (17 ) 146 Other comprehensive income attributable to redeemable noncontrolling interests (1 ) — — (1 ) Ending balance $ (639 ) $ 15 $ 7 $ (617 ) (a) Effective January 1, 2018 , unrealized gains and losses on equity investments with readily determinable fair values are recorded in other expense, net. (See Note 1 and Note 3.) |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by revenue source (in millions). Management uses these categories of revenue to evaluate the performance of its businesses and to assess its financial results and forecasts. Three Months Ended June 30, 2018 2017 U.S. Networks International Networks Education and Other U.S. Networks International Networks Education and Other Revenues: Distribution $ 654 $ 532 $ — $ 400 $ 457 $ — Advertising 1,090 473 — 472 333 — Other 36 46 14 18 21 44 Totals $ 1,780 $ 1,051 $ 14 $ 890 $ 811 $ 44 Six Months Ended June 30, 2018 2017 U.S. Networks International Networks Education and Other U.S. Networks International Networks Education and Other Revenues: Distribution $ 1,168 $ 1,069 $ — $ 808 $ 904 $ — Advertising 1,717 858 — 877 615 — Other 69 222 49 34 39 81 Totals $ 2,954 $ 2,149 $ 49 $ 1,719 $ 1,558 $ 81 |
Schedule of Contract Balances | The following table presents (in millions) the Company’s opening and closing balances of receivables and deferred revenues, as well as activity since the beginning of the period. December 31, 2017 Additions (b) Reductions (c) Foreign Currency June 30, 2018 Accounts receivable $ 1,838 5,933 (4,999 ) (25 ) $ 2,747 Deferred revenues: Current 255 699 (668 ) (9 ) 277 Long term (a) 109 9 (21 ) — 97 December 31, 2016 Additions Reductions (d) Foreign Currency June 30, 2017 Accounts receivable $ 1,495 3,382 (3,139 ) 20 $ 1,758 Deferred revenues: Current 163 388 (388 ) 30 193 Long term (a) 122 9 (39 ) 3 95 (a) Long term deferred revenues is a component of other noncurrent liabilities on the consolidated balance sheets. (b) This column includes Scripps Networks accounts receivable and deferred revenues balances of $783 million and $122 million , respectively, as of March 6, 2018 , the date of the acquisition. (See Note 2.) (c) This column includes the impact of the sale of the Education Business on April 30, 2018 . (See Note 2.) As of the sale date, accounts receivable and deferred revenue balances were $32 million and $74 million , respectively. (d) This column includes the impact of the sale of Raw and Betty on April 28, 2017 . (See Note 2.) As of the sale date, accounts receivable and deferred revenue balances were $6 million and $17 million , respectively. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | The following table presents the funded status of the benefit obligation of the Pension Plan and SERP based upon a valuation as of March 6, 2018 , the date of the acquisition of Scripps Networks. The funded status represents the benefit obligation less the fair value of the plan assets. Plan assets consist of a mix of U.S. and non-U.S. equity securities, fixed income securities and alternative investment funds. March 6, 2018 Pension Plan SERP Projected benefit obligation $ (96 ) $ (62 ) Fair value of plan assets 60 — Funded status $ (36 ) $ (62 ) |
Schedule of Net Benefit Costs | The following table presents the components of the net periodic pension cost for the Pension Plan and SERP (in millions). Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Pension Plan SERP Pension Plan SERP Interest cost $ 0.9 $ 0.4 $ 1.2 $ 0.5 Expected return on plan assets, net of expenses (1.0 ) — (1.4 ) — Net periodic pension cost $ (0.1 ) $ 0.4 $ (0.2 ) $ 0.5 |
Schedule of Assumptions Used | ssumptions used in determining the Pension Plan and SERP expense, following the acquisition of Scripps Networks, were as follows. Six Months Ended June 30, 2018 Pension Plan SERP Discount rate 3.70 % 3.41 % Long-term rate of return on plan assets 7.50 % N/A Rate of compensation increases 3.56 % 3.21 % Assumption Description Discount rate Based on a bond portfolio approach that includes securities rated Aa or better with maturities matching the Company's expected benefit payments from the plans. Long-term rate of return on plan assets Based on the weighted-average expected rate of return and capital market forecasts for each asset class employed and also considers the Company's historical compounded return on plan assets for 10 and 15 year periods. Increase in compensation levels Based on actual past experience and the near-term outlook. Mortality RP 2014 mortality tables adjusted and projected using the scale MP-2017 mortality improvement rates. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | he following table reconciles the U.S. federal statutory income tax rate to the Company's effective income tax rate. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 U.S. federal statutory income tax provision $ 77 21 % $ 165 35 % $ 73 21 % $ 262 35 % State and local income taxes, net of federal tax benefit 13 3 % 8 2 % 5 2 % 11 2 % Effect of foreign operations 11 3 % (24 ) (5 )% 15 4 % (39 ) (5 )% Domestic production activity deductions — — % (14 ) (3 )% — — % (22 ) (3 )% Change in uncertain tax positions 25 7 % — — % 27 7 % 1 — % Renewable energy investments tax credits (See Note 3) (3 ) (1 )% (40 ) (9 )% (3 ) (1 )% (66 ) (9 )% U.S. legislative changes — — % — — % (19 ) (5 )% — — % Noncontrolling interest adjustment (4 ) (1 )% — — % (4 ) (1 )% — — % Other, net 4 1 % (2 ) — % 9 2 % 1 — % Income tax expense $ 123 33 % $ 93 20 % $ 103 29 % $ 148 20 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Income Available to Discovery Stockholders | The table below sets forth the computation for income allocated to Discovery, Inc. stockholders (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net income $ 244 $ 380 $ 247 $ 601 Less: Allocation of undistributed income to Series A-1 convertible preferred stock (21 ) (46 ) (22 ) (72 ) Net income attributable to noncontrolling interests (23 ) — (28 ) — Net income attributable to redeemable noncontrolling interests (5 ) (6 ) (11 ) (12 ) Redeemable noncontrolling interest adjustments to redemption value (6 ) — (6 ) — Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 189 $ 328 $ 180 $ 517 Allocation of net income to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: Series A, B and C common stockholders 155 250 145 393 Series C-1 convertible preferred stockholders 34 78 35 124 Total 189 328 180 517 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders 21 46 22 72 Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 210 $ 374 $ 202 $ 589 |
Schedule of Weighted Average Basic And Diluted Shares Outstanding | The table below sets forth the weighted average number of shares outstanding utilized in determining the denominator for basic and diluted earnings per share (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Denominator — weighted average: Series A, B and C common shares outstanding — basic 523 384 473 387 Impact of assumed preferred stock conversion 187 192 187 193 Dilutive effect of share-based awards 2 2 1 3 Series A, B and C common shares outstanding — diluted 712 578 661 583 Series C-1 convertible preferred stock outstanding — basic and diluted 6 6 6 6 |
Schedule of Basic and Diluted Earnings per Share | The table below sets forth the impact of the preferred stock modification to the Company's calculated basic earnings per share for the three and six months ended June 30, 2017 . Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Pre-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 0.65 $ 1.02 Series C-1 convertible preferred stockholders $ 1.30 $ 2.04 Post-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 0.65 $ 1.02 Series C-1 convertible preferred stockholders $ 12.54 $ 19.65 The table below sets forth the Company's calculated earnings per share. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic net income per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.30 $ 0.65 $ 0.31 $ 1.02 Series C-1 convertible preferred stockholders $ 5.73 $ 12.54 $ 5.93 $ 19.65 Diluted net income per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.30 $ 0.64 $ 0.31 $ 1.01 Series C-1 convertible preferred stockholders $ 5.72 $ 12.50 $ 5.92 $ 19.56 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The table below presents the details of the anticipated stock repurchases and share-based awards that were excluded from the calculation of diluted earnings per share (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Anti-dilutive stock options and RSUs 11 11 12 10 PRSUs whose performance targets have not been achieved 2 1 2 1 |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accrued Liabilities | June 30, 2018 December 31, 2017 Accrued payroll and related benefits $ 421 $ 535 Content rights payable 304 219 Accrued interest 150 148 Accrued income taxes 38 45 Current portion of share-based compensation liabilities 28 12 Other accrued liabilities 532 350 Total accrued liabilities $ 1,473 $ 1,309 |
Schedule of Other Expense, Net | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Foreign currency losses, net $ (47 ) $ (26 ) $ (51 ) $ (35 ) Gain (loss) on derivative instruments, net 5 1 10 (2 ) Change in the value of common stock investments with readily determinable fair value (a) (5 ) — (43 ) — Interest income (b) — — 15 — Other income, net — 1 — — Total other expense, net $ (47 ) $ (24 ) $ (69 ) $ (37 ) (a) As of January 1, 2018 , upon adoption of ASU 2016-01, equity investments with readily determinable fair value for which the Company has the intent to retain the investment are measured at fair value, with unrealized gains and losses recorded in other expense, net . (See Notes 1 and 3.) (b) Interest income for the six months ended June 30, 2018 is comprised primarily of interest on proceeds from the issuance of senior notes used to fund the acquisition of Scripps Networks. As of June 30, 2018 , the Company had liquidated and utilized the proceeds in the acquisition of Scripps Networks. |
Schedule of Cash Proceeds Received from Share-based Payment Awards | Share-based plan payments, net in the statement of cash flows consisted of the following (in millions). Six Months Ended June 30, 2018 2017 Tax settlements associated with share-based plans $ (17 ) $ (30 ) Proceeds from issuance of common stock in connection with share-based plans 43 41 Total share-based plan proceeds, net $ 26 $ 11 |
Schedule of Supplemental Cash Flow Information | Six Months Ended June 30, 2018 2017 Cash paid for taxes, net $ 119 $ 199 Cash paid for interest, net 381 184 Non-cash investing and financing activities: Equity issued for the acquisition of Scripps Networks 3,218 — Accrued purchases of property and equipment 12 18 Assets acquired under capital lease arrangements 94 38 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions, Revenues and Expenses | The table below presents a summary of the transactions with related parties, including OWN, prior to the November 30, 2017 acquisition (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenues and service charges: Liberty Group $ 162 $ 128 $ 307 $ 254 Equity method investees (a) 49 38 88 72 Other 17 8 37 21 Total revenues and service charges $ 228 $ 174 $ 432 $ 347 Interest income $ 2 $ 3 $ 2 $ 7 Expenses $ (116 ) $ (40 ) $ (182 ) $ (70 ) (a) The increase for the three and six months ended June 30, 2018 relates to revenues and service charges earned from related party entities following the acquisition of Scripps Networks. |
Schedule of Related Party Transactions Receivables | The table below presents receivables due from related parties (in millions). June 30, 2018 December 31, 2017 Receivables (b) $ 153 $ 105 Note receivable (c) $ 96 $ — (b) The increase in related party receivables was a result of the acquisition of Scripps Networks. (c) Amount relates to a note receivable with UKTV, an equity method investee acquired in conjunction with the acquisition of Scripps Networks. (See Note 3.) |
Commitments, Contingencies, a44
Commitments, Contingencies, and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Significant Contractual Commitments | The Company’s contractual commitments increased significantly following the acquisition of Scripps Networks. Below are the Company's updated combined contractual payment commitments as of June 30, 2018 , including by period (in millions). Leases Year Ending December 31, Operating Capital Content Other Total 2018 (remaining six months) $ 48 $ 31 $ 617 $ 281 $ 977 2019 91 50 725 424 1,290 2020 91 45 821 282 1,239 2021 78 40 377 138 633 2022 49 34 383 86 552 Thereafter 490 117 860 118 1,585 Total minimum payments 847 317 3,783 1,329 6,276 Amounts representing interest — (38 ) — — (38 ) Total $ 847 $ 279 $ 3,783 $ 1,329 $ 6,238 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Segment | Revenues Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 U.S. Networks $ 1,780 $ 890 $ 2,954 $ 1,719 International Networks 1,051 811 2,149 1,558 Education and Other 14 44 49 81 Total revenues $ 2,845 $ 1,745 $ 5,152 $ 3,358 |
Schedule of Adjusted OIBDA by Segment | Adjusted OIBDA Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 U.S. Networks $ 983 $ 567 $ 1,635 $ 1,068 International Networks 336 236 473 430 Education and Other — 5 3 (1 ) Corporate and inter-segment eliminations (105 ) (91 ) (200 ) (177 ) Total Adjusted OIBDA $ 1,214 $ 717 $ 1,911 $ 1,320 |
Schedule of Reconciliation of Net Income available to Discovery, Inc. to total Adjusted OIBDA | Reconciliation of Net Income available to Discovery, Inc. to total Adjusted OIBDA Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income available to Discovery, Inc. $ 216 $ 374 $ 208 $ 589 Net income attributable to redeemable noncontrolling interests 5 6 11 12 Net income attributable to noncontrolling interests 23 — 28 — Income tax expense 123 93 103 148 Income before income taxes 367 473 350 749 Other expense, net 47 24 69 37 Loss from equity investees, net 40 42 62 95 Loss on extinguishment of debt — — — 54 Interest expense 196 91 373 182 Operating income 650 630 854 1,117 (Gain) loss on disposition (84 ) 4 (84 ) 4 Restructuring and other charges 187 8 428 32 Depreciation and amortization 410 80 603 160 Mark-to-market share-based compensation 26 (5 ) 29 7 Scripps Networks transaction and integration costs 25 — 81 — Total Adjusted OIBDA $ 1,214 $ 717 $ 1,911 $ 1,320 |
Schedule of Total Assets by Segment | Total Assets June 30, 2018 December 31, 2017 U.S. Networks $ 19,625 $ 4,127 International Networks 7,124 5,187 Education and Other 268 394 Corporate and inter-segment eliminations 6,475 12,847 Total assets $ 33,492 $ 22,555 |
Restructuring and Other Charg46
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs by Reportable Segment | Restructuring and other charges by segment were as follows (in millions). Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 U.S. Networks $ 19 $ — $ 53 $ 4 International Networks 146 4 246 21 Education and Other 1 — 1 1 Corporate 21 4 128 6 Total restructuring and other charges $ 187 $ 8 $ 428 $ 32 |
Schedule of Restructuring and Related Costs | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Restructuring charges $ 87 $ 4 $ 251 $ 28 Other charges 100 4 177 4 Total restructuring and other charges $ 187 $ 8 $ 428 $ 32 |
Schedule of Restructuring and Related Costs Changes in Exit Liabilities | Changes in restructuring and other liabilities recorded in accrued liabilities by major category were as follows (in millions). Contract Terminations Employee Terminations Total December 31, 2017 $ 1 $ 42 $ 43 Net Accruals 50 194 244 Cash Paid (29 ) (129 ) (158 ) June 30, 2018 $ 22 $ 107 $ 129 |
Condensed Consolidating Finan47
Condensed Consolidating Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 47 $ — $ 25 $ 246 $ 74 $ — $ 392 Receivables, net — — — 474 1,350 923 — 2,747 Content rights, net — — — 3 269 86 — 358 Prepaid expenses and other current assets 20 53 31 33 155 117 — 409 Inter-company trade receivables, net — — — 182 — — (182 ) — Total current assets 20 100 31 717 2,020 1,200 (182 ) 3,906 Investment in and advances to subsidiaries 7,918 13,795 (5,945 ) 6,494 — (3,929 ) (18,333 ) — Noncurrent content rights, net — — — 676 1,576 1,006 — 3,258 Assets held for sale — — — 68 — — — 68 Goodwill, net — — — 3,678 3,316 6,125 — 13,119 Intangible assets, net — — — 256 1,377 8,735 — 10,368 Equity method investments, including note receivable — 96 — 23 317 587 — 1,023 Other noncurrent assets, including property and equipment, net — — 20 516 772 462 (20 ) 1,750 Total assets $ 7,938 $ 13,991 $ (5,894 ) $ 12,428 $ 9,378 $ 14,186 $ (18,535 ) $ 33,492 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ — $ — $ 608 $ 27 $ 11 $ — $ 646 Other current liabilities — 83 — 339 1,147 481 — 2,050 Inter-company trade payables, net — — — — 182 — (182 ) — Total current liabilities — 83 — 947 1,356 492 (182 ) 2,696 Noncurrent portion of debt — 241 — 16,858 544 40 — 17,683 Other noncurrent liabilities 2 86 — 568 574 1,866 (19 ) 3,077 Total liabilities 2 410 — 18,373 2,474 2,398 (201 ) 23,456 Redeemable noncontrolling interests — — — — 410 — — 410 Equity attributable to Discovery, Inc. 7,936 13,581 (5,894 ) (5,945 ) 6,494 11,788 (20,024 ) 7,936 Noncontrolling interests — — — — — — 1,690 1,690 Total equity 7,936 13,581 (5,894 ) (5,945 ) 6,494 11,788 (18,334 ) 9,626 Total liabilities and equity $ 7,938 $ 13,991 $ (5,894 ) $ 12,428 $ 9,378 $ 14,186 $ (18,535 ) $ 33,492 Condensed Consolidating Balance Sheet December 31, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ — $ 6,800 $ 509 $ — $ — $ 7,309 Receivables, net — — 410 1,428 — — 1,838 Content rights, net — — 4 406 — — 410 Prepaid expenses and other current assets 49 32 204 149 — — 434 Inter-company trade receivables, net — — 205 — — (205 ) — Total current assets 49 32 7,623 2,492 — (205 ) 9,991 Investment in and advances to subsidiaries 4,563 4,532 6,951 — 3,056 (19,102 ) — Noncurrent content rights, net — — 672 1,541 — — 2,213 Goodwill, net — — 3,677 3,396 — — 7,073 Intangible assets, net — — 259 1,511 — — 1,770 Equity method investments, including note receivable — — 25 310 — — 335 Other noncurrent assets, including property and equipment, net — 20 364 809 — (20 ) 1,173 Total assets $ 4,612 $ 4,584 $ 19,571 $ 10,059 $ 3,056 $ (19,327 ) $ 22,555 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ — $ 7 $ 23 $ — $ — $ 30 Other current liabilities — — 572 1,269 — — 1,841 Inter-company trade payables, net — — — 205 — (205 ) — Total current liabilities — — 579 1,497 — (205 ) 1,871 Noncurrent portion of debt — — 14,163 592 — — 14,755 Other noncurrent liabilities 2 — 297 606 21 (20 ) 906 Total liabilities 2 — 15,039 2,695 21 (225 ) 17,532 Redeemable noncontrolling interests — — — 413 — — 413 Total equity 4,610 4,584 4,532 6,951 3,035 (19,102 ) 4,610 Total liabilities and equity $ 4,612 $ 4,584 $ 19,571 $ 10,059 $ 3,056 $ (19,327 ) $ 22,555 |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations Three Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 506 $ 1,385 $ 961 $ (7 ) $ 2,845 Costs of revenues, excluding depreciation and amortization — — — 107 593 292 3 995 Selling, general and administrative 5 1 — 87 417 187 (10 ) 687 Depreciation and amortization — — — 11 100 299 — 410 Restructuring and other charges 1 — — 16 137 35 (2 ) 187 Gain on disposition — — — — (84 ) — — (84 ) Total costs and expenses 6 1 — 221 1,163 813 (9 ) 2,195 Operating (loss) income (6 ) (1 ) — 285 222 148 2 650 Equity in earnings of subsidiaries 222 82 154 53 — 103 (614 ) — Interest income (expense) — 2 — (188 ) (10 ) — — (196 ) Income (loss) from equity investees, net — — — 1 (46 ) 5 — (40 ) Other income (expense), net — 1 — 73 (82 ) (38 ) (1 ) (47 ) Income before income taxes 216 84 154 224 84 218 (613 ) 367 Income tax benefit (expense) 1 — — (70 ) (26 ) (28 ) — (123 ) Net income 217 84 154 154 58 190 (613 ) 244 Net income attributable to noncontrolling interests — — — — — — (23 ) (23 ) Net income attributable to redeemable noncontrolling interests — — — — — — (5 ) (5 ) Net income available to Discovery, Inc. $ 217 $ 84 $ 154 $ 154 $ 58 $ 190 $ (641 ) $ 216 Condensed Consolidating Statement of Operations Three Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ 525 $ 1,224 $ — $ (4 ) $ 1,745 Costs of revenues, excluding depreciation and amortization — — 112 522 — — 634 Selling, general and administrative 5 — 56 332 — (4 ) 389 Depreciation and amortization — — 11 69 — — 80 Restructuring and other charges — — 3 5 — — 8 Loss on disposition — — — 4 — — 4 Total costs and expenses 5 — 182 932 — (4 ) 1,115 Operating (loss) income (5 ) — 343 292 — — 630 Equity in earnings of subsidiaries 376 376 245 — 251 (1,248 ) — Interest expense — — (83 ) (8 ) — — (91 ) Loss from equity investees, net — — — (42 ) — — (42 ) Other (expense) income, net — — (62 ) 38 — — (24 ) Income before income taxes 371 376 443 280 251 (1,248 ) 473 Income tax benefit (expense) 3 — (67 ) (29 ) — — (93 ) Net income 374 376 376 251 251 (1,248 ) 380 Net income attributable to redeemable noncontrolling interests — — — — — (6 ) (6 ) Net income available to Discovery, Inc. $ 374 $ 376 $ 376 $ 251 $ 251 $ (1,254 ) $ 374 Condensed Consolidating Statement of Operations Six Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 994 $ 2,934 $ 1,234 $ (10 ) $ 5,152 Costs of revenues, excluding depreciation and amortization — — — 214 1,459 384 (2 ) 2,055 Selling, general and administrative 31 — — 167 853 253 (8 ) 1,296 Depreciation and amortization — — — 28 193 382 — 603 Restructuring and other charges 9 — — 59 235 127 (2 ) 428 Gain on disposition — — — — (84 ) — — (84 ) Total costs and expenses 40 — — 468 2,656 1,146 (12 ) 4,298 Operating (loss) income (40 ) — — 526 278 88 2 854 Equity in earnings of subsidiaries 239 38 225 62 — 150 (714 ) — Interest expense — (4 ) — (345 ) (22 ) (2 ) — (373 ) Income (loss) from equity investees, net — — — 1 (77 ) 14 — (62 ) Other income (expense), net — 2 — 49 (78 ) (41 ) (1 ) (69 ) Income before income taxes 199 36 225 293 101 209 (713 ) 350 Income tax benefit (expense) 9 — — (68 ) (28 ) (16 ) — (103 ) Net income 208 36 225 225 73 193 (713 ) 247 Net income attributable to noncontrolling interests — — — — — — (28 ) (28 ) Net income attributable to redeemable noncontrolling interests — — — — — — (11 ) (11 ) Net income available to Discovery, Inc. $ 208 $ 36 $ 225 $ 225 $ 73 $ 193 $ (752 ) $ 208 Condensed Consolidating Statement of Operations Six Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ 1,016 $ 2,349 $ — $ (7 ) $ 3,358 Costs of revenues, excluding depreciation and amortization — — 220 1,021 — — 1,241 Selling, general and administrative 9 — 130 672 — (7 ) 804 Depreciation and amortization — — 23 137 — — 160 Restructuring and other charges — — 19 13 — — 32 Loss on disposition — — — 4 — — 4 Total costs and expenses 9 — 392 1,847 — (7 ) 2,241 Operating (loss) income (9 ) — 624 502 — — 1,117 Equity in earnings of subsidiaries 594 594 385 — 396 (1,969 ) — Interest expense — — (169 ) (13 ) — — (182 ) Loss on extinguishment of debt — — (54 ) — — — (54 ) Income (loss) from equity investees, net — — 1 (96 ) — — (95 ) Other (expense) income, net — — (89 ) 52 — — (37 ) Income before income taxes 585 594 698 445 396 (1,969 ) 749 Income tax benefit (expense) 4 — (104 ) (48 ) — — (148 ) Net income 589 594 594 397 396 (1,969 ) 601 Net income attributable to redeemable noncontrolling interests — — — — — (12 ) (12 ) Net income available to Discovery, Inc. $ 589 $ 594 $ 594 $ 397 $ 396 $ (1,981 ) $ 589 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income Three Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 217 $ 84 $ 154 $ 154 $ 58 $ 190 $ (613 ) $ 244 Other comprehensive (loss) income adjustments, net of tax: Currency translation (206 ) (197 ) (49 ) (49 ) (64 ) (230 ) 589 (206 ) Derivatives 29 — 29 29 29 19 (106 ) 29 Comprehensive income (loss) 40 (113 ) 134 134 23 (21 ) (130 ) 67 Comprehensive income attributable to noncontrolling interests — — — — — — (23 ) (23 ) Comprehensive income attributable to redeemable noncontrolling interests 2 — 2 2 2 1 (14 ) (5 ) Comprehensive income (loss) attributable to Discovery, Inc. $ 42 $ (113 ) $ 136 $ 136 $ 25 $ (20 ) $ (167 ) $ 39 Condensed Consolidating Statement of Comprehensive Income Three Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 374 $ 376 $ 376 $ 251 $ 251 $ (1,248 ) $ 380 Other comprehensive income (loss) adjustments, net of tax: Currency translation 91 91 91 91 61 (334 ) 91 Available-for-sale securities 5 5 5 5 4 (19 ) 5 Derivatives (9 ) (9 ) (9 ) (9 ) (6 ) 33 (9 ) Comprehensive income 461 463 463 338 310 (1,568 ) 467 Comprehensive income attributable to redeemable noncontrolling interests — — — — — (6 ) (6 ) Comprehensive income attributable to Discovery, Inc. $ 461 $ 463 $ 463 $ 338 $ 310 $ (1,574 ) $ 461 Condensed Consolidating Statement of Comprehensive Income (Loss) Six Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 208 $ 36 $ 225 $ 225 $ 73 $ 193 $ (713 ) $ 247 Other comprehensive (loss) income adjustments, net of tax: Currency translation (203 ) (177 ) (26 ) (26 ) (41 ) (194 ) 464 (203 ) Derivatives 24 — 24 24 24 16 (88 ) 24 Comprehensive income (loss) 29 (141 ) 223 223 56 15 (337 ) 68 Comprehensive income attributable to noncontrolling interests — — — — — — (28 ) (28 ) Comprehensive income attributable to redeemable noncontrolling interests — — — — — — (11 ) (11 ) Comprehensive income (loss) attributable to Discovery, Inc. $ 29 $ (141 ) $ 223 $ 223 $ 56 $ 15 $ (376 ) $ 29 Condensed Consolidating Statement of Comprehensive Income (Loss) Six Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 589 $ 594 $ 594 $ 397 $ 396 $ (1,969 ) $ 601 Other comprehensive income (loss) adjustments, net of tax: Currency translation 159 159 159 159 106 (583 ) 159 Available-for-sale securities 4 4 4 4 3 (15 ) 4 Derivatives (17 ) (17 ) (17 ) (18 ) (11 ) 63 (17 ) Comprehensive income 735 740 740 542 494 (2,504 ) 747 Comprehensive income attributable to redeemable noncontrolling interests (1 ) (1 ) (1 ) (1 ) (1 ) (8 ) (13 ) Comprehensive income attributable to Discovery, Inc. $ 734 $ 739 $ 739 $ 541 $ 493 $ (2,512 ) $ 734 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (100 ) $ (14 ) $ (8 ) $ 156 $ 405 $ 277 $ — $ 716 Investing Activities Business acquisitions, net of cash acquired (8,714 ) 54 — — — 95 — (8,565 ) Payments for investments — — — (10 ) (45 ) 7 — (48 ) Proceeds from dispositions, net of cash disposed — — — — 107 — — 107 Purchases of property and equipment — — — (12 ) (56 ) (14 ) — (82 ) Proceeds from derivative instruments, net — — — — 1 — — 1 Inter-company distributions, and other investing activities, net — 7 — 8 5 (8 ) (8 ) 4 Cash (used in) provided by investing activities (8,714 ) 61 — (14 ) 12 80 (8 ) (8,583 ) Financing Activities Commercial paper borrowings, net — — — 579 — — — 579 Principal repayments of revolving credit facility — — — — (50 ) — — (50 ) Borrowings under term loan facilities — — — 2,000 — — — 2,000 Principal (repayments) borrowings of term loans — — — (1,500 ) — — — (1,500 ) Principal repayments of capital lease obligations — — — (4 ) (17 ) (4 ) — (25 ) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — (19 ) (2 ) (38 ) — (59 ) Share-based plan proceeds, net 26 — — — — — — 26 Borrowings under program financing line of credit — — — 23 — — — 23 Inter-company contributions and other financing activities, net 8,788 — 8 (7,996 ) (589 ) (236 ) 8 (17 ) Cash provided by (used in) financing activities 8,814 — 8 (6,917 ) (658 ) (278 ) 8 977 Effect of exchange rate changes on cash and cash equivalents — — — — (22 ) (5 ) — (27 ) Net change in cash and cash equivalents — 47 — (6,775 ) (263 ) 74 — (6,917 ) Cash and cash equivalents, beginning of period — — — 6,800 509 — — 7,309 Cash and cash equivalents, end of period — 47 — 25 246 74 — 392 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash provided by (used in) operating activities $ 37 $ (5 ) $ (22 ) $ 433 $ — $ — $ 443 Investing Activities Payments for investments — — (7 ) (263 ) — — (270 ) Purchases of property and equipment — — (26 ) (52 ) — — (78 ) Distributions from equity method investees — — — 18 — — 18 Proceeds from dispositions, net of cash disposed — — — 29 — — 29 Proceeds from derivative instruments, net — — — 5 — — 5 Other investing activities, net — — 27 3 — (27 ) 3 Cash used in investing activities — — (6 ) (260 ) — (27 ) (293 ) Financing Activities Commercial paper borrowings, net — — 25 — — — 25 Borrowings under revolving credit facility — — 350 — — — 350 Principal repayments of revolving credit facility — — (200 ) — — — (200 ) Borrowings from debt, net of discount and including premiums — — 659 — — — 659 Principal repayments of debt, including discount payment and premiums to par value — — (650 ) — — — (650 ) Principal repayments of capital lease obligations — — (3 ) (16 ) — — (19 ) Repurchases of stock (501 ) — — — — — (501 ) Cash settlement of common stock repurchase contracts 58 — — — — — 58 Distributions to redeemable noncontrolling interests — — — (20 ) — — (20 ) Share-based plan proceeds, net 11 — — — — — 11 Inter-company contributions and other financing activities, net 395 5 (165 ) (270 ) — 27 (8 ) Cash (used in) provided by financing activities (37 ) 5 16 (306 ) — 27 (295 ) Effect of exchange rate changes on cash and cash equivalents — — — 51 — — 51 Net change in cash and cash equivalents — — (12 ) (82 ) — — (94 ) Cash and cash equivalents, beginning of period — — 20 280 — — 300 Cash and cash equivalents, end of period $ — $ — $ 8 $ 198 $ — $ — $ 206 |
Description of Business and B48
Description of Business and Basis of Presentation (Principals of Consolidation and Basis of Presentation) (Details) - Advance Programming Holdings, LLC | Aug. 07, 2017shares |
Series C Convertible Preferred Stock | |
Concentration Risk [Line Items] | |
Common stock, conversion basis (in shares) | 2 |
Series C-1 Convertible Preferred Stock | |
Concentration Risk [Line Items] | |
Common stock, conversion basis (in shares) | 19.3648 |
Description of Business and B49
Description of Business and Basis of Presentation (Impact of the Preferred Stock Modification) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Series A, B and C Common Stock | ||||
Class of Stock [Line Items] | ||||
Net income per share, basic (in dollars per share) | $ 0.30 | $ 0.65 | $ 0.31 | $ 1.02 |
Series C-1 Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Net income per share, basic (in dollars per share) | $ 5.73 | 12.54 | $ 5.93 | 19.65 |
Pre-Exchange | Series C-1 Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Net income per share, basic (in dollars per share) | $ 1.30 | $ 2.04 |
Description of Business and B50
Description of Business and Basis of Presentation (Accounting and Reporting Pronouncements Adopted) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 4,867,000,000 | $ 4,867,000,000 | $ 4,632,000,000 | |||
Revenues | 2,845,000,000 | $ 1,745,000,000 | 5,152,000,000 | $ 3,358,000,000 | ||
Costs of revenues, excluding depreciation and amortization | 995,000,000 | $ 634,000,000 | 2,055,000,000 | $ 1,241,000,000 | ||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ 26,000,000 | |||||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Loss | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | (26,000,000) | |||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 7,000,000 | |||||
Revenues | 0 | 0 | ||||
Costs of revenues, excluding depreciation and amortization | $ 0 | $ 0 |
Description of Business and B51
Description of Business and Basis of Presentation (Concentrations Risk) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Concentration Risk [Line Items] | |
Derivative asset, fair value of collateral | $ 3 |
Credit Risk | |
Concentration Risk [Line Items] | |
Derivative assets | $ 58 |
Customer Concentration Risk | U.S. Networks | Largest 10 Distributors | Distribution | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 96.00% |
Customer Concentration Risk | International Networks | Largest 10 Distributors | Distribution | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 39.00% |
Acquisitions and Dispositions52
Acquisitions and Dispositions (Scripps Networks Interactive, Inc. ("Scripps Networks")) (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 06, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill, net | $ 13,119 | $ 7,073 | |
Scripps Networks | |||
Business Acquisition [Line Items] | |||
Share price portion paid in cash (in dollars per share) | $ 65.82 | ||
Equity interest issued or issuable (in shares) | 1,000,000 | ||
Goodwill, net | $ 6,216 | ||
Scripps Networks | U.S. Networks | |||
Business Acquisition [Line Items] | |||
Goodwill, net | 5,600 | ||
Scripps Networks | International Networks | |||
Business Acquisition [Line Items] | |||
Goodwill, net | $ 600 | ||
No Election or Mixed Consideration Election | Scripps Networks | |||
Business Acquisition [Line Items] | |||
Share price portion paid in cash (in dollars per share) | $ 65.82 | ||
Equity interest issued or issuable (in shares) | 1.0584 | ||
Cash Consideration Election | Scripps Networks | |||
Business Acquisition [Line Items] | |||
Share price portion paid in cash (in dollars per share) | $ 90 | ||
Stock Consideration Election | Scripps Networks | |||
Business Acquisition [Line Items] | |||
Equity interest issued or issuable (in shares) | 3.9392 |
Acquisitions and Dispositions53
Acquisitions and Dispositions (Components of the Acquisition of Scripps Networks Consideration) (Details) - Scripps Networks $ / shares in Units, shares in Millions, $ in Millions | Mar. 06, 2018USD ($)$ / sharesRateshares |
Business Acquisition [Line Items] | |
Scripps Networks shares outstanding (in shares) | shares | 131 |
Cash consideration (per Scripps Networks share) (in dollars per share) | $ / shares | $ 65.82 |
Cash portion of consideration | $ 8,590 |
Share conversion ratio per Scripps Networks share | 1.0584 |
Equity portion of consideration | $ 3,179 |
Shares awarded under Scripps Networks share-based compensation programs (in shares) | shares | 3 |
Scripps Networks share-based compensation awards converting to cash (in shares) | shares | 2 |
Average cash consideration (per share less applicable exercise price) (in dollars per share) | $ / shares | $ 46.90 |
Cash portion of consideration | $ 88 |
Scripps Networks share-based compensation awards | shares | 1 |
Share-based compensation conversion ratio (based on intrinsic value per award) | Rate | 300.00% |
Discovery Series C common stock issued (1) or share-based compensation converted (2) (in shares) | shares | 3 |
Average equity value (intrinsic value of Discovery Series C common stock or options to be issued) (in dollars per share) | $ / shares | $ 15.19 |
Share-based compensation equity value | $ 51 |
Less: post-combination compensation expense | (12) |
Equity portion of consideration | 39 |
Scripps Networks transaction costs paid by Discovery | 117 |
Total consideration paid | $ 12,013 |
Series C Common Stock | |
Business Acquisition [Line Items] | |
Discovery Series C common stock (in shares) | shares | 138 |
Discovery Series C common stock price per share (in dollars per share) | $ / shares | $ 23.01 |
Acquisitions and Dispositions54
Acquisitions and Dispositions (Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Mar. 06, 2018 | Nov. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 25, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill, net | $ 13,119 | $ 7,073 | |||
Redeemable noncontrolling interest | $ (410) | $ (413) | |||
Scripps Networks | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 783 | ||||
Other current assets | 397 | ||||
Content rights | 1,088 | ||||
Property and equipment | 315 | ||||
Goodwill, net | 6,216 | ||||
Intangible assets | 9,175 | ||||
Equity method investments, including note receivable | 738 | ||||
Other noncurrent assets | 146 | ||||
Current liabilities assumed | (627) | ||||
Debt assumed | (2,481) | ||||
Deferred income taxes | (1,687) | ||||
Other noncurrent liabilities | (350) | ||||
Noncontrolling interests | (1,700) | ||||
Total consideration paid | 12,013 | ||||
Cash consideration transferred | 8,590 | ||||
Scripps Networks | Preliminary | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | 783 | ||||
Other current assets | 421 | ||||
Content rights | 1,088 | ||||
Property and equipment | 315 | ||||
Goodwill, net | 6,003 | ||||
Intangible assets | 9,175 | ||||
Equity method investments, including note receivable | 870 | ||||
Other noncurrent assets | 111 | ||||
Current liabilities assumed | (494) | ||||
Debt assumed | (2,481) | ||||
Deferred income taxes | (1,695) | ||||
Other noncurrent liabilities | (383) | ||||
Noncontrolling interests | (1,700) | ||||
Total consideration paid | 12,013 | ||||
Scripps Networks | Measurement Period Adjustments | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | 0 | ||||
Other current assets | (24) | ||||
Content rights | 0 | ||||
Property and equipment | 0 | ||||
Goodwill, net | 213 | ||||
Intangible assets | 0 | ||||
Equity method investments, including note receivable | (132) | ||||
Other noncurrent assets | 35 | ||||
Current liabilities assumed | (133) | ||||
Debt assumed | 0 | ||||
Deferred income taxes | 8 | ||||
Other noncurrent liabilities | 33 | ||||
Noncontrolling interests | 0 | ||||
Total consideration paid | $ 0 | ||||
Harpo | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 84 | ||||
Intangible assets | 295 | ||||
Content rights | 176 | ||||
Other assets | 26 | ||||
Other liabilities | (230) | ||||
Net assets acquired | 351 | ||||
Goodwill, net | 136 | ||||
Remeasurement gain on previously held equity interest | (33) | ||||
Carrying value of previously held equity interest | (329) | ||||
Redeemable noncontrolling interest | (55) | ||||
Cash consideration transferred | $ 70 | ||||
MTG | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 53 | ||||
Property and equipment | 17 | ||||
Other assets | 6 | ||||
Goodwill, net | 75 | ||||
Liabilities assumed | (7) | ||||
Net assets acquired | 144 | ||||
MTG | Preliminary | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 71 | ||||
Property and equipment | 16 | ||||
Other assets | 6 | ||||
Goodwill, net | 59 | ||||
Liabilities assumed | (8) | ||||
Net assets acquired | 144 | ||||
MTG | Measurement Period Adjustments | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | (18) | ||||
Property and equipment | 1 | ||||
Other assets | 0 | ||||
Goodwill, net | 16 | ||||
Liabilities assumed | 1 | ||||
Net assets acquired | $ 0 |
Acquisitions and Dispositions55
Acquisitions and Dispositions (Intangible Assets Acquired) (Details) - Scripps Networks $ in Millions | Mar. 06, 2018USD ($) |
Business Acquisition [Line Items] | |
Fair Value | $ 9,175 |
Trademarks and trade names | |
Business Acquisition [Line Items] | |
Fair Value | $ 1,225 |
Weighted Average Useful Life in Years | 10 years |
Advertiser relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 4,995 |
Weighted Average Useful Life in Years | 10 years |
Advertising backlog | |
Business Acquisition [Line Items] | |
Fair Value | $ 280 |
Weighted Average Useful Life in Years | 1 year |
Affiliate relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 2,455 |
Weighted Average Useful Life in Years | 12 years |
Broadcast licenses | |
Business Acquisition [Line Items] | |
Fair Value | $ 220 |
Weighted Average Useful Life in Years | 6 years |
Acquisitions and Dispositions56
Acquisitions and Dispositions (OWN) (Details) - Harpo - USD ($) $ in Millions | Nov. 30, 2017 | Jun. 30, 2018 | Nov. 29, 2017 |
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 73.75% | 49.50% | |
Cash portion of consideration | $ 70 | ||
Remeasurement gain on previously held equity interest | $ 33 | ||
Variable interest entity, consolidated, carrying amount, assets | $ 740 | ||
Variable interest entity, consolidated, carrying amount, liabilities | $ 276 | ||
Acquired finite-lived intangible assets, weighted average useful life | 9 years | ||
Subsequent Acquisition, Window One | |||
Business Acquisition [Line Items] | |||
Step acquisition, subsequent acquisition, term of window | 90 days | ||
Subsequent Acquisition, Window Two | |||
Business Acquisition [Line Items] | |||
Step acquisition, subsequent acquisition, term of window | 2 years 6 months |
Acquisitions and Dispositions57
Acquisitions and Dispositions (The Enthusiast Network, Inc.) (Details) - USD ($) | Sep. 25, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||||
Adjustments of redemption values to the floor | $ 6,000,000 | $ 0 | $ 6,000,000 | $ 1,000,000 | |||||
Redeemable noncontrolling interest balance | 410,000,000 | $ 237,000,000 | 410,000,000 | $ 237,000,000 | $ 419,000,000 | $ 413,000,000 | $ 249,000,000 | $ 243,000,000 | |
MTG | |||||||||
Business Acquisition [Line Items] | |||||||||
Post-acquisition ownership percentage of the acquiror in the combined entity | 67.50% | ||||||||
Remeasurement gain (loss) | $ 0 | ||||||||
Acquired finite-lived intangible assets, weighted average useful life | 16 years | ||||||||
Initial fair value of redeemable noncontrolling interest | $ 82,000,000 | ||||||||
Adjustments of redemption values to the floor | 38,000,000 | ||||||||
Redeemable noncontrolling interest balance | $ 120,000,000 | $ 121,000,000 | $ 121,000,000 | ||||||
MTG | GoldenTree Asset Management L.P. | |||||||||
Business Acquisition [Line Items] | |||||||||
Post-acquisition ownership percentage of the acquiror in the combined entity | 32.50% |
Acquisitions and Dispositions58
Acquisitions and Dispositions (Other) (Details) - Series of Individually Immaterial Business Acquisitions - USD ($) $ in Millions | Mar. 02, 2018 | Sep. 01, 2017 |
TURKEY | ||
Business Acquisition [Line Items] | ||
Total consideration paid | $ 5 | |
POLAND | ||
Business Acquisition [Line Items] | ||
Total consideration paid | $ 4 |
Acquisitions and Dispositions59
Acquisitions and Dispositions (Schedule of Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Net income available to Discovery, Inc. | $ 260 | $ 424 | $ 348 | $ 583 |
Scripps Networks Interactive, Harpo, and VTEN | ||||
Business Acquisition [Line Items] | ||||
Revenues | $ 2,845 | $ 2,769 | $ 5,774 | $ 5,338 |
Net income per share - basic (in dollars per share) | $ 360,000 | $ 0.59 | $ 0.48 | $ 0.81 |
Net income per share - diluted (in dollars per share) | $ 360,000 | $ 0.59 | $ 0.48 | $ 0.81 |
Acquisitions and Dispositions60
Acquisitions and Dispositions (Impact of Business Combinations) (Details) - Scripps Networks Interactive, Harpo, and VTEN - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 1,066 | $ 1,446 |
Net income available to Discovery, Inc. | 78 | 28 |
Distribution | ||
Business Acquisition [Line Items] | ||
Total revenues | 286 | 394 |
Advertising | ||
Business Acquisition [Line Items] | ||
Total revenues | 742 | 986 |
Other | ||
Business Acquisition [Line Items] | ||
Total revenues | $ 38 | $ 66 |
Acquisitions and Dispositions61
Acquisitions and Dispositions (Dispositions) (Details) - USD ($) | Apr. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
(Gain) loss on disposition | $ 84,000,000 | $ (4,000,000) | $ 84,000,000 | $ (4,000,000) | ||
Goodwill | $ 13,119,000,000 | $ 13,119,000,000 | $ 7,073,000,000 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | Education Business | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by parent | 88.00% | 12.00% | 12.00% | |||
Consideration received on sale | $ 113,000,000 | |||||
(Gain) loss on disposition | 84,000,000 | |||||
Loss on write-off of net assets | 44,000,000 | |||||
Goodwill written off related to sale | $ 40,000,000 | |||||
Loss from discontinued operations | $ 5,000,000 | $ 6,000,000 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Raw and Betty businesses | ||||||
Business Acquisition [Line Items] | ||||||
(Gain) loss on disposition | (4,000,000) | |||||
Impairment of assets held for sale | 38,000,000 | 38,000,000 | ||||
Goodwill | 30,000,000 | 30,000,000 | ||||
Loss from discontinued operations | $ 3,000,000 | $ 4,000,000 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | All3Media | Raw and Betty businesses | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by parent | 50.00% | 50.00% |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Total Investments | $ 1,794 | $ 4,988 |
Cash and cash equivalents | ||
Investment [Line Items] | ||
Time deposits | 0 | 1,305 |
Other noncurrent assets | ||
Investment [Line Items] | ||
Equity investments without readily determinable fair value | 384 | 295 |
Equity method investment | Equity investments | ||
Investment [Line Items] | ||
Equity method investments | 927 | 335 |
Equity method investment | Note receivable | ||
Investment [Line Items] | ||
Equity method investments | 96 | 0 |
Money market funds | Cash and cash equivalents | ||
Investment [Line Items] | ||
Trading securities | 31 | 2,707 |
Mutual funds | Prepaid expenses and other current assets | ||
Investment [Line Items] | ||
Carrying value | 37 | 182 |
Mutual funds | Other noncurrent assets | ||
Investment [Line Items] | ||
Carrying value | 198 | 0 |
Common Stock | Other noncurrent assets | ||
Investment [Line Items] | ||
Carrying value | $ 121 | $ 164 |
Investments (Money Market Funds
Investments (Money Market Funds, Time Deposits and U.S. Treasury Securities) (Details) $ in Billions | Dec. 31, 2017USD ($) |
Investments [Abstract] | |
Senior notes issued | $ 6.8 |
Investments (Equity Method Inve
Investments (Equity Method Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Investments [Abstract] | |||||
Variable interest, maximum exposure to loss | $ 501 | $ 501 | |||
Carrying value of investments in VIE's accounted for using the equity method | 458 | 458 | $ 181 | ||
Variable interest entity losses | $ 39 | $ 35 | $ 50 | $ 78 |
Investments (UKTV) (Details)
Investments (UKTV) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 06, 2018 | Aug. 11, 2011 |
UKTV | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 309 | ||
Note receivable | 96 | ||
nC Plus | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 217 | ||
Scripps Networks | UKTV | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Scripps Networks | nC Plus | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 32.00% | ||
Scripps Networks | UKTV | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% |
Investments (Renewable Energy I
Investments (Renewable Energy Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest entity losses | $ 39 | $ 35 | $ 50 | $ 78 | |
Income tax benefit (expense) | (123) | (93) | (103) | (148) | |
Carrying value of investments in VIE's accounted for using the equity method | 458 | 458 | $ 181 | ||
Variable interest, maximum exposure to loss | 501 | 501 | |||
Solar Ventures | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payments to acquire equity method investments | 17 | 196 | |||
Variable interest entity losses | 8 | 43 | 16 | 126 | |
Income tax benefit (expense) | 5 | 56 | 7 | 112 | |
Tax benefit from entities' passive losses | 2 | 15 | 4 | 46 | |
Income tax credits and adjustments | 3 | $ 41 | 3 | $ 66 | |
Carrying value of investments in VIE's accounted for using the equity method | 94 | 94 | $ 98 | ||
Variable interest, maximum exposure to loss | $ 4 | $ 4 |
Investments (Equity Earnings (L
Investments (Equity Earnings (Loss) and Tax Benefit (Loss) Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Loss on renewable energy investments | $ (39) | $ (35) | $ (50) | $ (78) |
Income tax benefit (expense) | (123) | (93) | (103) | (148) |
Solar Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Loss on renewable energy investments | (8) | (43) | (16) | (126) |
Equity passive loss | 2 | 15 | 4 | 46 |
Investment tax credits | 3 | 41 | 3 | 66 |
Income tax benefit (expense) | $ 5 | $ 56 | $ 7 | $ 112 |
Investments (Investor Basis Dif
Investments (Investor Basis Differential) (Details) - Various equity method investments, aggregated $ in Millions | 1 Months Ended |
Jun. 30, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Amortization of intangible assets | $ 13 |
Expected future amortization of intangible assets | $ 348 |
Investments (Other Equity Metho
Investments (Other Equity Method Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Investments [Abstract] | ||
Impairment loss | $ 19 | $ 24 |
Investments (Common Stock Inves
Investments (Common Stock Investments with Readily Determinable Fair Value ) (Details) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2018 |
Accumulated Other Comprehensive Income | Accounting Standards Update 2016-01 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Reclassification of accumulated other comprehensive income to retained earnings | $ (32) | |||
Cumulative effect of new accounting principle in period of adoption | (26) | |||
Retained Earnings | Accounting Standards Update 2016-01 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Reclassification of accumulated other comprehensive income to retained earnings | 32 | |||
Cumulative effect of new accounting principle in period of adoption | 26 | |||
Lionsgate Collar | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Purchase of available for sale securities (in shares) | 5 | |||
Purchase of stock, percentage ownership after transaction | 3.00% | |||
Cost | $ 195 | $ 195 | $ 195 | |
Equity securities recognized in other expense, net | (44) | (1) | ||
Unhedged equity securities recorded in other comprehensive income | 0 | 32 | ||
Other-than-temporary impairment | (62) | (62) | ||
Carrying value | $ 121 | $ 121 | 164 | |
Percentage of shares pledged as collateral | 50.00% | 50.00% | ||
Lionsgate Collar | Accumulated Other Comprehensive Income | Accounting Standards Update 2016-01 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Reclassification of accumulated other comprehensive income to retained earnings | $ 0 | $ (32) |
Investments (Equity Investments
Investments (Equity Investments Without Readily Determinable Fair Values Assessed Under the Measurement Alternative) (Details) $ in Millions | Jun. 30, 2018USD ($) |
GroupNineMedia | |
Other Investment Not Readily Marketable [Line Items] | |
Ownership percentage by parent | 42.00% |
Equity investments without readily determinable fair value | $ 212 |
Refinery29 | |
Other Investment Not Readily Marketable [Line Items] | |
Equity investments without readily determinable fair value | $ 35 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets held for sale | $ 68 | $ 0 |
Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Common stock | 121 | 164 |
Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | 1,305 |
Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 28 | 9 |
Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 30 | 16 |
Accrued liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 1 | 0 |
Accrued liabilities | Not Designated as Hedging Instrument | Equity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Accrued liabilities | Not Designated as Hedging Instrument | Credit contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Accrued liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 3 | 12 |
Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 8 |
Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 17 | 13 |
Accrued liabilities | Fair Value Hedging | Designated as Hedging Instrument | Equity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Other noncurrent liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 3 | 6 |
Other noncurrent liabilities | Not Designated as Hedging Instrument | Equity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Other noncurrent liabilities | Not Designated as Hedging Instrument | Credit contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 1 |
Other noncurrent liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Other noncurrent liabilities | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Other noncurrent liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 98 | 98 |
Other noncurrent liabilities | Fair Value Hedging | Designated as Hedging Instrument | Equity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 513 | 4,383 |
Liabilities | 367 | 320 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 387 | 3,053 |
Liabilities | 245 | 182 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 126 | 1,330 |
Liabilities | 122 | 138 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 1,305 | |
Trading securities | 31 | 2,707 |
Fair Value, Measurements, Recurring | Cash and cash equivalents | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | |
Trading securities | 31 | 2,707 |
Fair Value, Measurements, Recurring | Cash and cash equivalents | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 1,305 | |
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Cash and cash equivalents | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | |
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 37 | 182 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 37 | 182 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 28 | 7 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 28 | 7 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 2 | |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 2 | |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 198 | |
Common stock | 121 | 82 |
Common stock - pledged | 82 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 198 | |
Common stock | 121 | 82 |
Common stock - pledged | 82 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 0 | |
Common stock | 0 | 0 |
Common stock - pledged | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 0 | |
Common stock | 0 | 0 |
Common stock - pledged | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Not Designated as Hedging Instrument | Lionsgate Collar | Equity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 24 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Not Designated as Hedging Instrument | Lionsgate Collar | Equity Contract | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Not Designated as Hedging Instrument | Lionsgate Collar | Equity Contract | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 24 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Not Designated as Hedging Instrument | Lionsgate Collar | Equity Contract | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 6 | 3 |
Fair Value, Measurements, Recurring | Other noncurrent assets | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Other noncurrent assets | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 6 | 3 |
Fair Value, Measurements, Recurring | Other noncurrent assets | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Other noncurrent assets | Fair Value Hedging | Designated as Hedging Instrument | Lionsgate Collar | Equity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 13 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Fair Value Hedging | Designated as Hedging Instrument | Lionsgate Collar | Equity Contract | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Fair Value Hedging | Designated as Hedging Instrument | Lionsgate Collar | Equity Contract | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 13 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Fair Value Hedging | Designated as Hedging Instrument | Lionsgate Collar | Equity Contract | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Assets held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets held for sale | 68 | |
Fair Value, Measurements, Recurring | Assets held for sale | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets held for sale | 0 | |
Fair Value, Measurements, Recurring | Assets held for sale | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets held for sale | 68 | |
Fair Value, Measurements, Recurring | Assets held for sale | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets held for sale | 0 | |
Fair Value, Measurements, Recurring | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 37 | 182 |
Fair Value, Measurements, Recurring | Accrued liabilities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 37 | 182 |
Fair Value, Measurements, Recurring | Accrued liabilities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Accrued liabilities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Accrued liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 1 | |
Fair Value, Measurements, Recurring | Accrued liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Accrued liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 1 | |
Fair Value, Measurements, Recurring | Accrued liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Accrued liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 3 | 12 |
Fair Value, Measurements, Recurring | Accrued liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Accrued liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 3 | 12 |
Fair Value, Measurements, Recurring | Accrued liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 8 | |
Fair Value, Measurements, Recurring | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 8 | |
Fair Value, Measurements, Recurring | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 17 | 13 |
Fair Value, Measurements, Recurring | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 17 | 13 |
Fair Value, Measurements, Recurring | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 208 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 208 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Designated as Hedging Instrument | Cross-currency swaps | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Designated as Hedging Instrument | Cross-currency swaps | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 3 | 6 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 3 | 6 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Not Designated as Hedging Instrument | Credit contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 1 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Not Designated as Hedging Instrument | Credit contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Not Designated as Hedging Instrument | Credit contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 1 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Not Designated as Hedging Instrument | Credit contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 98 | 98 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | ||
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | $ 98 | 98 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior notes, fair value | $ 16,600 | $ 16,600 | $ 14,800 |
Silver Spring, Maryland [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of assets held for sale | $ 12 | $ 12 |
Content Rights (Schedule Of Con
Content Rights (Schedule Of Content Rights) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Licensed content rights: | ||
Accumulated content rights expense | $ (4,380) | $ (4,197) |
Total content rights, net | 3,616 | 2,623 |
Current portion | (358) | (410) |
Noncurrent portion | 3,258 | 2,213 |
Content rights | ||
Produced content rights: | ||
Completed | 5,264 | 4,355 |
In-production | 750 | 442 |
Coproduced content rights: | ||
Completed | 772 | 745 |
In-production | 71 | 27 |
Licensed content rights: | ||
Acquired | 972 | 1,070 |
Prepaid | 167 | 181 |
Content rights, at cost | 7,996 | 6,820 |
Olympic games | ||
Licensed content rights: | ||
Current portion | $ (52) | |
Noncurrent portion | $ 83 |
Content Rights (Schedule Of C75
Content Rights (Schedule Of Content Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Content rights expense | $ 728 | $ 446 | $ 1,478 | $ 901 |
Other production charges | 112 | 76 | 272 | 141 |
Content impairments | 104 | 6 | 182 | 9 |
Total content expense | 944 | $ 528 | 1,932 | $ 1,051 |
Scripps Networks | ||||
Business Acquisition [Line Items] | ||||
Content impairments | $ 100 | $ 177 |
Debt (Outstanding Debt) (Detail
Debt (Outstanding Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 279 | $ 225 |
Total debt | 18,469 | 14,913 |
Commercial paper | 579 | 0 |
Unamortized discount, premium and debt issuance costs, net | (140) | (128) |
Debt, net of unamortized discount, premium and debt issuance costs | 18,329 | 14,785 |
Current portion of debt | (646) | (30) |
Noncurrent portion of debt | 17,683 | 14,755 |
Loans Payable | ||
Debt Instrument [Line Items] | ||
Total debt | 500 | 0 |
Line of Credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 375 | 425 |
Line of Credit | Program financing line of credit | ||
Debt Instrument [Line Items] | ||
Total debt | 23 | 0 |
5.625% Senior notes, semi-annual interest, due August 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 411 | 411 |
Debt instrument interest rate | 5.625% | |
2.200% Senior notes, semi-annual interest, due September 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 500 | 500 |
Debt instrument interest rate | 2.20% | |
Floating rate notes, quarterly interest, due September 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 400 | 400 |
2.750% Senior notes, semi-annual interest, due November 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 500 | 0 |
Debt instrument interest rate | 2.75% | |
2.800% Senior notes, semi-annual interest, due June 2020 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 600 | 0 |
Debt instrument interest rate | 2.80% | |
5.050% Senior notes, semi-annual interest, due June 2020 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 789 | 789 |
Debt instrument interest rate | 5.05% | |
4.375% Senior notes, semi-annual interest, due June 2021 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 650 | 650 |
Debt instrument interest rate | 4.375% | |
2.375% Senior notes, euro denominated, annual interest, due March 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 347 | 358 |
Debt instrument interest rate | 2.375% | |
3.300% Senior notes, semi-annual interest, due May 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 500 | 500 |
Debt instrument interest rate | 3.30% | |
3.500% Senior notes, semi-annual interest, due June 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 400 | 0 |
Debt instrument interest rate | 3.50% | |
2.950% Senior notes, semi-annual interest, due March 2023 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,200 | 1,200 |
Debt instrument interest rate | 2.95% | |
3.250% Senior notes, semi-annual interest, due April 2023 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 350 | 350 |
Debt instrument interest rate | 3.25% | |
3.800% Senior notes, semi-annual interest, due March 2024 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 450 | 450 |
Debt instrument interest rate | 3.80% | |
2.500% Senior notes, sterling denominated, annual interest, due September 2024 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 522 | 538 |
Debt instrument interest rate | 2.50% | |
3.900% Senior notes, semi-annual interest, due November 2024 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 500 | 0 |
Debt instrument interest rate | 3.90% | |
3.450% Senior notes, semi-annual interest, due March 2025 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 300 | 300 |
Debt instrument interest rate | 3.45% | |
3.950% Senior notes, semi-annual interest, due June 2025 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 500 | 0 |
Debt instrument interest rate | 3.95% | |
4.900% Senior notes, semi-annual interest, due March 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 700 | 700 |
Debt instrument interest rate | 4.90% | |
1.900% Senior notes, euro denominated, annual interest, due March 2027 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 694 | 717 |
Debt instrument interest rate | 1.90% | |
3.950% Senior notes, semi-annual interest, due March 2028 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,700 | 1,700 |
Debt instrument interest rate | 3.95% | |
5.000% Senior notes, semi-annual interest, due September 2037 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,250 | 1,250 |
Debt instrument interest rate | 5.00% | |
6.350% Senior notes, semi-annual interest, due June 2040 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 850 | 850 |
Debt instrument interest rate | 6.35% | |
4.950% Senior notes, semi-annual interest, due May 2042 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 500 | 500 |
Debt instrument interest rate | 4.95% | |
4.875% Senior notes, semi-annual interest, due April 2043 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 850 | 850 |
Debt instrument interest rate | 4.875% | |
5.200% Senior notes, semi-annual interest, due September 2047 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,250 | $ 1,250 |
Debt instrument interest rate | 5.20% |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) £ in Millions, $ in Millions | Apr. 03, 2018USD ($) | Mar. 06, 2018USD ($) | Mar. 13, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 21, 2017USD ($)$ / £ | Sep. 21, 2017GBP (£)$ / £ |
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 18,469 | $ 18,469 | $ 14,913 | ||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 0 | $ 54 | |||||||
2.750% Senior notes, semi-annual interest, due November 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.75% | 2.75% | |||||||||
Long-term debt, gross | $ 500 | $ 500 | 0 | ||||||||
2.800% Senior notes, semi-annual interest, due June 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.80% | 2.80% | |||||||||
Long-term debt, gross | $ 600 | $ 600 | 0 | ||||||||
3.500% Senior notes, semi-annual interest, due June 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.50% | 3.50% | |||||||||
Long-term debt, gross | $ 400 | $ 400 | 0 | ||||||||
3.900% Senior notes, semi-annual interest, due November 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.90% | 3.90% | |||||||||
Long-term debt, gross | $ 500 | $ 500 | 0 | ||||||||
3.950% Senior notes, semi-annual interest, due June 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.95% | 3.95% | |||||||||
Long-term debt, gross | $ 500 | $ 500 | 0 | ||||||||
2.200% Senior notes, semi-annual interest, due September 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.20% | 2.20% | |||||||||
Long-term debt, gross | $ 500 | $ 500 | 500 | ||||||||
2.950% Senior notes, semi-annual interest, due March 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.95% | 2.95% | |||||||||
Long-term debt, gross | $ 1,200 | $ 1,200 | 1,200 | ||||||||
3.950% Senior notes, semi-annual interest, due March 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.95% | 3.95% | |||||||||
Long-term debt, gross | $ 1,700 | $ 1,700 | 1,700 | ||||||||
5.000% Senior notes, semi-annual interest, due September 2037 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.00% | 5.00% | |||||||||
Long-term debt, gross | $ 1,250 | $ 1,250 | 1,250 | ||||||||
5.200% Senior notes, semi-annual interest, due September 2047 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.20% | 5.20% | |||||||||
Long-term debt, gross | $ 1,250 | $ 1,250 | 1,250 | ||||||||
Floating rate notes, quarterly interest, due September 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 400 | $ 400 | 400 | ||||||||
3.800% Senior notes, semi-annual interest, due March 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.80% | 3.80% | |||||||||
Long-term debt, gross | $ 450 | $ 450 | 450 | ||||||||
4.900% Senior notes, semi-annual interest, due March 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 4.90% | 4.90% | |||||||||
Long-term debt, gross | $ 700 | $ 700 | 700 | ||||||||
5.050% Senior notes, semi-annual interest, due June 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.05% | 5.05% | |||||||||
Long-term debt, gross | $ 789 | $ 789 | 789 | ||||||||
5.625% Senior notes, semi-annual interest, due August 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.625% | 5.625% | |||||||||
Long-term debt, gross | $ 411 | $ 411 | $ 411 | ||||||||
Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance cost | $ 1 | ||||||||||
Loss on extinguishment of debt | 54 | ||||||||||
Payment for debt extinguishment or debt prepayment cost | 50 | ||||||||||
Write off of deferred debt issuance cost | 2 | ||||||||||
Repayments of debt | $ 1 | ||||||||||
Senior Notes | Scripps Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Reduction in the carrying amount of the senior notes, which will be amortized to interest expense until maturity | $ 19 | ||||||||||
Accumulated fair value adjustments amortization | $ 1 | $ 1 | |||||||||
Debt conversion, original debt, amount | $ 2,300 | ||||||||||
Senior Notes | 2.750% Senior notes, semi-annual interest, due November 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.75% | 2.75% | |||||||||
Senior Notes | 2.800% Senior notes, semi-annual interest, due June 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.80% | 2.80% | |||||||||
Senior Notes | 3.500% Senior notes, semi-annual interest, due June 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.50% | 3.50% | |||||||||
Senior Notes | 3.900% Senior notes, semi-annual interest, due November 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.90% | 3.90% | |||||||||
Senior Notes | 3.950% Senior notes, semi-annual interest, due June 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.95% | 3.95% | |||||||||
Senior Notes | 2.200% Senior notes, semi-annual interest, due September 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.20% | 2.20% | |||||||||
Long-term debt, gross | $ 500 | ||||||||||
Senior Notes | 2.950% Senior notes, semi-annual interest, due March 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.95% | 2.95% | |||||||||
Long-term debt, gross | $ 1,200 | ||||||||||
Senior Notes | 3.950% Senior notes, semi-annual interest, due March 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.95% | 3.95% | |||||||||
Long-term debt, gross | $ 1,700 | ||||||||||
Senior Notes | 5.000% Senior notes, semi-annual interest, due September 2037 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.00% | 5.00% | |||||||||
Long-term debt, gross | $ 1,250 | ||||||||||
Senior Notes | 5.200% Senior notes, semi-annual interest, due September 2047 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.20% | 5.20% | |||||||||
Long-term debt, gross | $ 1,250 | ||||||||||
Senior Notes | Floating rate notes, quarterly interest, due September 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 400 | ||||||||||
Senior Notes | 3.800% Senior notes, semi-annual interest, due March 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.80% | ||||||||||
Long-term debt, gross | $ 450 | ||||||||||
Unamortized discount | 1 | ||||||||||
Debt issuance cost | $ 4 | ||||||||||
Senior Notes | 4.900% Senior notes, semi-annual interest, due March 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 4.90% | ||||||||||
Long-term debt, gross | $ 200 | ||||||||||
Debt issuance cost | 2 | ||||||||||
Unamortized premium | 10 | ||||||||||
Senior Notes | 5.050% Senior notes, semi-annual interest, due June 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.05% | 5.05% | |||||||||
Long-term debt, gross | $ 600 | ||||||||||
Senior Notes | 5.625% Senior notes, semi-annual interest, due August 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.625% | 5.625% | |||||||||
Sterling Notes | Designated as Hedging Instrument | Net investment hedges | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 522 | $ 522 | £ 400 | ||||||||
Sterling Notes | 2.500% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.50% | 2.50% | |||||||||
Long-term debt, gross | $ 540 | ||||||||||
Exchange rate at issuance (in usd per gbp) | $ / £ | 1.35 | 1.35 | |||||||||
Unamortized discount | $ 11 | ||||||||||
Debt issuance costs, net | $ 57 | ||||||||||
Scripps Networks | Senior Notes | Scripps Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of liabilities assumed | $ 2,500 | ||||||||||
Scripps Networks | Senior Notes | Un-exchanged Scripps Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of liabilities assumed | $ 243 | $ 243 |
Debt (Term Loans) (Details)
Debt (Term Loans) (Details) - USD ($) $ in Millions | Aug. 11, 2017 | Mar. 06, 2018 | Jun. 30, 2018 |
Debt Instrument [Line Items] | |||
Unsecured long-term debt, noncurrent | $ 1,000 | ||
Outstanding balance | $ 500 | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 0.20% | ||
Unsecured Debt | Three Year Delayed Draw Tranche Unsecured Term Loan Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowings schedule repayment period, in years | 3 years | ||
Unsecured Debt | Five Year Delayed Draw Tranche Unsecured Term Loan Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowings schedule repayment period, in years | 5 years |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Details) | Aug. 11, 2017USD ($)renewalRate | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 10, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||
Long-term debt, gross | $ | $ 18,469,000,000 | $ 14,913,000,000 | ||
Unused capacity, commitment fee percentage | 0.20% | |||
London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Percentage bearing variable interest, percentage rate | 1.30% | |||
Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Percentage bearing variable interest, percentage rate | 0.30% | |||
Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 550.00% | |||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 100.00% | |||
Step Down 1 | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 500.00% | |||
Step Down 1 | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 100.00% | |||
Step Down 2 | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 450.00% | |||
Step Down 2 | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 100.00% | |||
Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | $ | $ 2,500,000,000 | $ 2,000,000,000 | ||
Number of renewal periods | renewal | 2 | |||
Term of renewal period | 364 days | |||
Weighted average interest rate | 3.33% | 2.69% | ||
Revolving credit facility | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt, gross | $ | $ 375,000,000 | $ 425,000,000 | ||
Outstanding borrowings | $ | $ 0 | |||
Revolver sublimit for standby letters of credit | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | $ | $ 100,000,000 | |||
Revolver sublimit for swing line loans | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | $ | $ 50,000,000 |
Debt (Commercial Paper) (Detail
Debt (Commercial Paper) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Commercial paper | $ 579,000,000 | $ 0 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Weighted average interest rate | 2.70% | |
Revolving credit facility | Line of Credit | ||
Short-term Debt [Line Items] | ||
Line of credit | $ 0 |
Debt (Program Financing Line of
Debt (Program Financing Line of Credit) (Details) - Secured Debt - Line of Credit - USD ($) | Jun. 30, 2018 | Jan. 12, 2018 |
Line of Credit Facility [Line Items] | ||
Aggregate principal amount | $ 26,000,000 | |
Line of credit | $ 23,000,000 |
Derivative Financial Instrume82
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||
Amounts eligible to be offset under master netting agreements | $ 0 | $ 0 | $ 0 | |
Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Net deferred losses on derivative instruments expected to be reclassified from AOCI to income in the next 12 months | (22,000,000) | |||
Fair Value Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Amounts of ineffectiveness recognized | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume83
Derivative Financial Instruments (Schedule of Derivative Instruments, Fair Value) (Details) £ in Millions, $ in Millions | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 21, 2017GBP (£) |
Derivatives, Fair Value [Line Items] | |||
Long-term debt, gross | $ 18,469 | $ 14,913 | |
Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 28 | 9 | |
Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 30 | 16 | |
Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 21 | 33 | |
Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 101 | 105 | |
Not Designated as Hedging Instrument | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 25 | 25 | |
Not Designated as Hedging Instrument | Interest rate swaps | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Interest rate swaps | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Interest rate swaps | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Interest rate swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Cross-currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 64 | 64 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 1 | 0 | |
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 3 | 6 | |
Not Designated as Hedging Instrument | Equity (Lionsgate collar) | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 97 | 0 | |
Not Designated as Hedging Instrument | Equity (Lionsgate collar) | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Equity (Lionsgate collar) | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 24 | 0 | |
Not Designated as Hedging Instrument | Equity (Lionsgate collar) | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Equity (Lionsgate collar) | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Credit contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 0 | 665 | |
Not Designated as Hedging Instrument | Credit contracts | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Credit contracts | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Credit contracts | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Credit contracts | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 1 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 835 | 817 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 28 | 7 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 3 | 12 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Net investment hedges | Designated as Hedging Instrument | Sterling Notes | |||
Derivatives, Fair Value [Line Items] | |||
Long-term debt, gross | 522 | £ 400 | |
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 0 | 303 | |
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 2 | |
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 8 | |
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 1,703 | 1,708 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 6 | 3 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 17 | 13 | |
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 98 | 98 | |
Fair Value Hedging | Designated as Hedging Instrument | Equity (Lionsgate collar) | |||
Derivatives, Fair Value [Line Items] | |||
Notional | 0 | 97 | |
Fair Value Hedging | Designated as Hedging Instrument | Equity (Lionsgate collar) | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Equity (Lionsgate collar) | Other noncurrent assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, Fair Value | 0 | 13 | |
Fair Value Hedging | Designated as Hedging Instrument | Equity (Lionsgate collar) | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Equity (Lionsgate collar) | Other noncurrent liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, Fair Value | $ 0 | $ 0 |
Derivative Financial Instrume84
Derivative Financial Instruments (Schedule of Income and Comprehensive Income (Loss) Impact of Items Designated as Cash Flow Hedges) (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in accumulated other comprehensive loss | $ 39 | $ (18) | $ 29 | $ (31) |
Foreign exchange | Distribution | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified into income from accumulated other comprehensive loss (effective portion) | 3 | (4) | 3 | (7) |
Foreign exchange | Advertising | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified into income from accumulated other comprehensive loss (effective portion) | (2) | (1) | (1) | (1) |
Foreign exchange | Costs of revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified into income from accumulated other comprehensive loss (effective portion) | 0 | 0 | (4) | 4 |
Interest rate swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified into income from accumulated other comprehensive loss (effective portion) | $ 0 | $ 0 | $ 0 | $ (1) |
Derivative Financial Instrume85
Derivative Financial Instruments (Schedule of Comprehensive Income (Loss) Impact of Items Designated as Net Investment Hedges) (Details) - Designated as Hedging Instrument - Net investment hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Currency translation adjustments: | ||||
Total other comprehensive income (loss) | $ 95 | $ (39) | $ 20 | $ (43) |
Cross-currency swaps | ||||
Currency translation adjustments: | ||||
Cross-currency swaps - changes in fair value | 54 | (39) | (2) | (48) |
Cross-currency swaps - interest settlements | 0 | 0 | 7 | 5 |
Foreign exchange | ||||
Currency translation adjustments: | ||||
Changes in fair value and foreign exchange rates | 0 | 0 | (1) | 0 |
Foreign exchange | Sterling Notes | ||||
Currency translation adjustments: | ||||
Changes in fair value and foreign exchange rates | $ 41 | $ 0 | $ 16 | $ 0 |
Derivative Financial Instrume86
Derivative Financial Instruments (Schedule of Pre-Tax Impact of Items Designated as Fair Value Hedges) (Details) - Fair Value Hedging - Designated as Hedging Instrument - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Total in other expense, net | $ 0 | $ 0 | $ 0 | |
Equity Contract | ||||
Derivative [Line Items] | ||||
Gains on changes in fair value of hedged AFS | $ 4,000,000 | 4,000,000 | ||
Gains on changes in the intrinsic value of equity contracts | (4,000,000) | (4,000,000) | ||
Fair value of equity contracts excluded from effectiveness assessment | 3,000,000 | 1,000,000 | ||
Equity Contract | Other expense, net | ||||
Derivative [Line Items] | ||||
Total in other expense, net | $ 3,000,000 | $ 1,000,000 |
Derivative Financial Instrume87
Derivative Financial Instruments (Schedule of Pre-Tax Impact of Items not Designated as Hedges) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total in other expense, net | $ 5 | $ (2) | $ 10 | $ (3) |
Cross-currency swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total in other expense, net | 4 | (2) | 0 | (3) |
Credit contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total in other expense, net | 0 | 0 | (1) | 0 |
Equity Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total in other expense, net | $ 1 | $ 0 | $ 11 | $ 0 |
Redeemable Noncontrolling Int88
Redeemable Noncontrolling Interests (Schedule of Redeemable Noncontrolling Interest) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Increase (Decrease) in Temporary Equity | ||||
Beginning balance | $ 419 | $ 249 | $ 413 | $ 243 |
Cash distributions to redeemable noncontrolling interests | 19 | 17 | (21) | (20) |
Comprehensive income adjustments: | ||||
Net income attributable to redeemable noncontrolling interests | 5 | 6 | 11 | 12 |
Other comprehensive income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 1 |
Currency translation on redemption values | (1) | (1) | 1 | 0 |
Retained earnings adjustments: | ||||
Adjustments of redemption values to the floor | 6 | 0 | 6 | 1 |
Ending balance | $ 410 | $ 237 | $ 410 | $ 237 |
Redeemable Noncontrolling Int89
Redeemable Noncontrolling Interests (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 25, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interests | $ 410 | $ 413 | |||||
Redeemable noncontrolling interest balance | 410 | $ 419 | $ 413 | $ 237 | $ 249 | $ 243 | |
OWN | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interest balance | 56 | ||||||
MTG | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interest balance | 121 | $ 120 | |||||
Post-acquisition ownership percentage of the acquiror in the combined entity | 67.50% | ||||||
Discovery Family | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interest balance | $ 206 | ||||||
Ownership percentage by noncontrolling owners | 40.00% | ||||||
Terms of put arrangement | 1 year | ||||||
Discovery Japan | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interest balance | $ 27 | ||||||
Ownership percentage by noncontrolling owners | 20.00% | ||||||
GoldenTree Asset Management L.P. | MTG | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Post-acquisition ownership percentage of the acquiror in the combined entity | 32.50% |
Equity (Narrative) (Details)
Equity (Narrative) (Details) $ / shares in Units, $ in Millions | Mar. 06, 2018shares | Mar. 15, 2017USD ($) | Jun. 30, 2018USD ($)series$ / sharesshares | Jun. 30, 2017shares | Jun. 30, 2018USD ($)series$ / sharesshares | Jun. 30, 2017shares | Dec. 31, 2017USD ($) | Aug. 07, 2017shares | Aug. 06, 2017directorshares | Dec. 31, 2016USD ($) |
Class of Stock [Line Items] | ||||||||||
Treasury stock, value | $ | $ 6,737 | $ 6,737 | $ 6,737 | |||||||
Price paid per share, percentage of average price paid multiplied by conversion rate | 99.00% | 99.00% | ||||||||
Additional paid-in capital | $ | $ 10,590 | $ 10,590 | $ 7,295 | |||||||
Historical stock repurchases, net of new issuances, as a percentage of shares outstanding at inception of stock repurchase program | 33.00% | 33.00% | ||||||||
Prepaid stock repurchase contract | ||||||||||
Class of Stock [Line Items] | ||||||||||
Cash settlement amount common stock repurchase contract | $ | $ 58 | |||||||||
Prepaid repurchase of common stock | $ | $ 57 | |||||||||
Cash premium received common stock repurchase contract | $ | $ 1 | |||||||||
Advance Newhouse | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of preferred directors | director | 3 | |||||||||
Series C Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Treasury stock (in shares) | 164,000,000 | 164,000,000 | ||||||||
Treasury stock, value | $ | $ 6,600 | $ 6,600 | ||||||||
Common stock, conversion basis (in shares) | 1 | |||||||||
Shares repurchased (in shares) | 0 | 9,100,000 | 0 | 14,300,000 | ||||||
Series A Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Treasury stock (in shares) | 3,000,000 | 3,000,000 | ||||||||
Treasury stock, value | $ | $ 171 | $ 171 | ||||||||
Common stock, conversion basis (in shares) | 1 | |||||||||
Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of classes of stock | series | 2 | 2 | ||||||||
Series A-1 Convertible Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares authorized (in shares) | 8,000,000 | 8,000,000 | ||||||||
Series C-1 Convertible Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares authorized (in shares) | 6,000,000 | 6,000,000 | ||||||||
Shares repurchased (in shares) | 0 | 0 | 0 | 0 | ||||||
Series C-1 Convertible Preferred Stock | Advance Programming Holdings, LLC | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, conversion basis (in shares) | 19.3648 | |||||||||
Series A Convertible Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||
Series A Convertible Preferred Stock | Advance Newhouse | ||||||||||
Class of Stock [Line Items] | ||||||||||
Required ownership percentage to retain special voting rights | 80.00% | 80.00% | ||||||||
Scripps Networks | ||||||||||
Class of Stock [Line Items] | ||||||||||
Equity interest issued or issuable (in shares) | 1,000,000 | |||||||||
Scripps Networks | Series C Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of stock in connection with acquisition (in shares) | 139,000,000 |
Equity (Stock Repurchases) (Det
Equity (Stock Repurchases) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Class of Stock [Line Items] | ||||
Purchase price | $ 0 | $ 501 | ||
Series C Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | 0 | 9,100,000 | 0 | 14,300,000 |
Purchase price | $ 0 | $ 241 | $ 0 | $ 381 |
Series C Convertible Preferred Stock | Advance Programming Holdings, LLC | ||||
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | 0 | 1,100,000 | 0 | 2,300,000 |
Purchase price | $ 0 | $ 60 | $ 0 | $ 120 |
Series C-1 Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | 0 | 0 | 0 | 0 |
Equity (Other Comprehensive (Lo
Equity (Other Comprehensive (Loss) Income Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Currency translation adjustments, Net-of-tax | ||||
Reclassifications | $ 3 | $ 12 | $ 5 | $ 12 |
AFS adjustments, Net-of-tax | ||||
Reclassifications | 3 | 12 | 5 | 12 |
Total equity investment adjustments | 0 | 5 | 0 | 4 |
Derivative adjustments, Net-of-tax | ||||
Total derivative adjustments | 29 | (9) | 24 | (17) |
Other comprehensive (loss) income, Pretax | (158) | 74 | (169) | 127 |
Other comprehensive (loss) income, Tax Benefit (Expense) | (19) | 13 | (10) | 19 |
Other comprehensive (loss) income, Net-of-tax | (177) | 87 | (179) | 146 |
Currency translation adjustments | ||||
Currency translation adjustments, Pretax | ||||
Unrealized (losses) gains | (196) | 82 | (200) | 149 |
Reclassifications | 4 | 12 | 4 | 12 |
Currency translation adjustments, Tax Benefit (Expense) | ||||
Unrealized (losses) gains | (10) | 9 | (3) | 10 |
Reclassifications | 0 | 0 | 0 | 0 |
Currency translation adjustments, Net-of-tax | ||||
Unrealized (losses) gains: | (206) | 91 | (203) | 159 |
Reclassifications | 4 | 12 | 4 | 12 |
AFS adjustments, Pretax | ||||
Reclassifications | 4 | 12 | 4 | 12 |
AFS adjustments, Net-of-tax | ||||
Reclassifications | 4 | 12 | 4 | 12 |
Currency translation adjustments | Foreign exchange | ||||
Currency translation adjustments, Pretax | ||||
Unrealized (losses) gains | (295) | 109 | (224) | 180 |
Currency translation adjustments, Tax Benefit (Expense) | ||||
Unrealized (losses) gains | (10) | 9 | (3) | 10 |
Currency translation adjustments, Net-of-tax | ||||
Unrealized (losses) gains: | (305) | 118 | (227) | 190 |
Currency translation adjustments | Net investment hedges | ||||
Currency translation adjustments, Pretax | ||||
Unrealized (losses) gains | 95 | (39) | 20 | (43) |
Currency translation adjustments, Tax Benefit (Expense) | ||||
Unrealized (losses) gains | 0 | 0 | 0 | 0 |
Currency translation adjustments, Net-of-tax | ||||
Unrealized (losses) gains: | 95 | (39) | 20 | (43) |
AFS adjustments | ||||
Currency translation adjustments, Pretax | ||||
Reclassifications | 0 | (4) | 0 | (4) |
Currency translation adjustments, Net-of-tax | ||||
Reclassifications | 0 | (4) | 0 | (4) |
AFS adjustments, Pretax | ||||
Unrealized gains | 0 | 9 | 0 | 8 |
Reclassifications | 0 | (4) | 0 | (4) |
Total equity investment adjustments | 0 | 5 | 0 | 4 |
AFS adjustments, Tax Benefit (Expense) | ||||
Unrealized gains | 0 | 0 | 0 | 0 |
Reclassifications | 0 | 0 | 0 | 0 |
Total equity investment adjustments | 0 | 0 | 0 | 0 |
AFS adjustments, Net-of-tax | ||||
Reclassifications | 0 | (4) | 0 | (4) |
Unrealized gains | 0 | 9 | 0 | 8 |
Total equity investment adjustments | 0 | 5 | 0 | 4 |
Derivative adjustments | ||||
Derivative adjustments, Pretax | ||||
Gains (losses) recognized in accumulated other comprehensive loss | 39 | (18) | 29 | (31) |
Total derivative adjustments | 38 | (13) | 31 | (26) |
Derivative adjustments, Tax Benefit (Expense) | ||||
Unrealized gains (losses) | (9) | 5 | (6) | 10 |
Total derivative adjustments | (9) | 4 | (7) | 9 |
Derivative adjustments, Net-of-tax | ||||
Unrealized gains (losses) | 30 | (13) | 23 | (21) |
Total derivative adjustments | 29 | (9) | 24 | (17) |
Derivative adjustments | Distribution revenue | ||||
Derivative adjustments, Pretax | ||||
Reclassifications | (3) | 4 | (3) | 7 |
Derivative adjustments, Tax Benefit (Expense) | ||||
Reclassifications | 0 | (1) | 0 | (2) |
Derivative adjustments, Net-of-tax | ||||
Reclassifications | (3) | 3 | (3) | 5 |
Derivative adjustments | Advertising | ||||
Derivative adjustments, Pretax | ||||
Reclassifications | 2 | 1 | 1 | 1 |
Derivative adjustments, Tax Benefit (Expense) | ||||
Reclassifications | 0 | 0 | 0 | 0 |
Derivative adjustments, Net-of-tax | ||||
Reclassifications | $ 2 | $ 1 | 1 | 1 |
Derivative adjustments | Costs of revenues | ||||
Derivative adjustments, Pretax | ||||
Reclassifications | 4 | (4) | ||
Derivative adjustments, Tax Benefit (Expense) | ||||
Reclassifications | (1) | 1 | ||
Derivative adjustments, Net-of-tax | ||||
Reclassifications | 3 | (3) | ||
Derivative adjustments | Interest expense | ||||
Derivative adjustments, Pretax | ||||
Reclassifications | 0 | 1 | ||
Derivative adjustments, Tax Benefit (Expense) | ||||
Reclassifications | 0 | 0 | ||
Derivative adjustments, Net-of-tax | ||||
Reclassifications | $ 0 | $ 1 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ (613) | $ (704) | $ (585) | $ (762) |
Other comprehensive (loss) income before reclassifications | (180) | 75 | (184) | 134 |
Reclassifications from accumulated other comprehensive loss to net income | 3 | 12 | 5 | 12 |
Other comprehensive (loss) income | (177) | 87 | (179) | 146 |
Other comprehensive income attributable to redeemable noncontrolling interests | (1) | |||
Ending balance | (790) | (617) | (790) | (617) |
Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications from accumulated other comprehensive loss to net income | (26) | |||
Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (612) | (730) | (615) | (797) |
Other comprehensive (loss) income before reclassifications | (210) | 79 | (207) | 147 |
Reclassifications from accumulated other comprehensive loss to net income | 4 | 12 | 4 | |
Other comprehensive (loss) income | (206) | 91 | (203) | 159 |
Other comprehensive income attributable to redeemable noncontrolling interests | (1) | |||
Ending balance | (818) | (639) | (818) | (639) |
Currency Translation | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications from accumulated other comprehensive loss to net income | 0 | |||
AFS | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 0 | 10 | 26 | 11 |
Other comprehensive (loss) income before reclassifications | 0 | 9 | 0 | 8 |
Reclassifications from accumulated other comprehensive loss to net income | 0 | (4) | 0 | |
Other comprehensive (loss) income | 0 | 5 | 0 | 4 |
Other comprehensive income attributable to redeemable noncontrolling interests | 0 | |||
Ending balance | 0 | 15 | 0 | 15 |
AFS | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications from accumulated other comprehensive loss to net income | (26) | |||
Derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (1) | 16 | 4 | 24 |
Other comprehensive (loss) income before reclassifications | 30 | (13) | 23 | (21) |
Reclassifications from accumulated other comprehensive loss to net income | (1) | 4 | 1 | |
Other comprehensive (loss) income | 29 | (9) | 24 | (17) |
Other comprehensive income attributable to redeemable noncontrolling interests | 0 | |||
Ending balance | $ 28 | $ 7 | 28 | $ 7 |
Derivatives | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications from accumulated other comprehensive loss to net income | $ 0 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - The Tribune Company - The Food Network and Cooking Channel | Mar. 06, 2018 |
Noncontrolling Interest [Line Items] | |
Voting interests percentage by parent | 80.00% |
Ownership percentage by parent | 68.70% |
Revenues - Revenue Recognition
Revenues - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,845 | $ 1,745 | $ 5,152 | $ 3,358 |
Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,186 | 857 | 2,237 | 1,712 |
Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,563 | 805 | 2,575 | 1,492 |
Operating Segments | U.S. Networks | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,780 | 890 | 2,954 | 1,719 |
Operating Segments | U.S. Networks | Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 654 | 400 | 1,168 | 808 |
Operating Segments | U.S. Networks | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,090 | 472 | 1,717 | 877 |
Operating Segments | U.S. Networks | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36 | 18 | 69 | 34 |
Operating Segments | International Networks | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,051 | 811 | 2,149 | 1,558 |
Operating Segments | International Networks | Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 532 | 457 | 1,069 | 904 |
Operating Segments | International Networks | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 473 | 333 | 858 | 615 |
Operating Segments | International Networks | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 46 | 21 | 222 | 39 |
Operating Segments | Education and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14 | 44 | 49 | 81 |
Operating Segments | Education and Other | Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Education and Other | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Education and Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 14 | $ 44 | $ 49 | $ 81 |
Revenues - Transaction Price Al
Revenues - Transaction Price Allocated to Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 $ in Millions | Jun. 30, 2018USD ($) |
Distribution | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,000 |
Remaining performance obligations, expected timing of satisfaction, period | 10 years |
Content Licensing Contracts | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 535 |
Remaining performance obligations, expected timing of satisfaction, period | 7 years |
Brand Licensing Contracts | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 79 |
Remaining performance obligations, expected timing of satisfaction, period | 15 years |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Apr. 30, 2018 | Mar. 06, 2018 | Apr. 28, 2017 | |
Accounts receivable | |||||
Beginning of period | $ 1,838 | $ 1,495 | |||
Additions | 5,933 | 3,382 | |||
Reductions | (4,999) | (3,139) | |||
Foreign Currency | (25) | 20 | |||
End of period | 2,747 | 1,758 | |||
Deferred revenues, Current: | |||||
Beginning of period | 255 | 163 | |||
Additions | 699 | 388 | |||
Reductions | (668) | (388) | |||
Foreign Currency | (9) | 30 | |||
End of period | 277 | 193 | |||
Deferred revenues, Long term: | |||||
Beginning of period | 109 | 122 | |||
Additions | 9 | 9 | |||
Reductions | (21) | (39) | |||
Foreign Currency | 0 | 3 | |||
End of period | 97 | 95 | |||
Accounts receivable | $ 1,838 | $ 1,495 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | Education Business | |||||
Deferred revenues, Long term: | |||||
Disposal group, accounts receivable | $ 32 | ||||
Disposal group, deferred revenue | $ 74 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Raw and Betty businesses | |||||
Deferred revenues, Long term: | |||||
Disposal group, accounts receivable | $ 6 | ||||
Disposal group, deferred revenue | $ 17 | ||||
Scripps Networks | |||||
Deferred revenues, Long term: | |||||
Accounts receivable | $ 783 | ||||
Deferred revenue | $ 122 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) | 4 Months Ended |
Jun. 30, 2018USD ($) | |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 599,023 |
Benefit payments | 0 |
Expected future employer contributions, next fiscal year | 2,000,000 |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future benefit payment, next twelve months | $ 35,000,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Funded Status (Details) $ in Millions | Mar. 06, 2018USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Projected benefit obligation | $ (96) |
Fair value of plan assets | 60 |
Funded status | (36) |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Projected benefit obligation | (62) |
Fair value of plan assets | 0 |
Funded status | $ (62) |
Employee Benefit Plans - Com100
Employee Benefit Plans - Components of the Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 0.9 | $ 1.2 |
Expected return on plan assets, net of expenses | (1) | (1.4) |
Net periodic pension cost | (0.1) | (0.2) |
SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0.4 | 0.5 |
Expected return on plan assets, net of expenses | 0 | 0 |
Net periodic pension cost | $ 0.4 | $ 0.5 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used in Determining Pension Plan and SERP Expense (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Long-term rate of return on plan assets, historical compound return on plan assets, period | 10 years |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Long-term rate of return on plan assets, historical compound return on plan assets, period | 15 years |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Discount rate | 3.70% |
Long-term rate of return on plan assets | 7.50% |
Rate of compensation increases | 3.56% |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Discount rate | 3.41% |
Rate of compensation increases | 3.21% |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Tax Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
U.S. federal statutory income tax provision | $ 77 | $ 165 | $ 73 | $ 262 |
State and local income taxes, net of federal tax benefit | 13 | 8 | 5 | 11 |
Effect of foreign operations | 11 | (24) | 15 | (39) |
Domestic production activity deductions | 0 | (14) | 0 | (22) |
Change in uncertain tax positions | 25 | 0 | 27 | 1 |
Renewable energy investments tax credits (See Note 3) | (3) | (40) | (3) | (66) |
U.S. legislative changes | 0 | 0 | (19) | 0 |
Noncontrolling interest adjustment | (4) | 0 | (4) | 0 |
Other, net | 4 | (2) | 9 | 1 |
Income tax expense | $ 123 | $ 93 | $ 103 | $ 148 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
U.S. federal statutory income tax provision | 21.00% | 35.00% | 21.00% | 35.00% |
State and local income taxes, net of federal tax benefit | 3.00% | 2.00% | 2.00% | 2.00% |
Effect of foreign operations | 3.00% | (5.00%) | 4.00% | (5.00%) |
Domestic production activity deductions | (0.00%) | (3.00%) | (0.00%) | (3.00%) |
Change in uncertain tax positions | 7.00% | 0.00% | 7.00% | 0.00% |
Renewable energy investments tax credits (See Note 3) | (1.00%) | (9.00%) | (1.00%) | (9.00%) |
U.S. legislative changes | 0.00% | 0.00% | (5.00%) | 0.00% |
Noncontrolling interest adjustment | (1.00%) | (0.00%) | (1.00%) | (0.00%) |
Other, net | 1.00% | 0.00% | 2.00% | 0.00% |
Income tax expense | 33.00% | 20.00% | 29.00% | 20.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2017 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Tax Cuts and Jobs Act of 2017, provisional income tax benefit | $ 44 | |
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits | 189 | $ 410 |
Unrecognized tax benefits, decreases resulting from current period tax positions | 49 | |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 21 | 57 |
Scripps Networks | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits | 188 | |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 32 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Aug. 07, 2017 | |
Series C-1 Convertible Preferred Stock | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Net income available to Discovery, Inc. stockholders for diluted net income per share | $ 34 | $ 78 | $ 35 | $ 124 | |
Advance Programming Holdings, LLC | Series C Convertible Preferred Stock | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Common stock, conversion basis (in shares) | 2 | ||||
Advance Programming Holdings, LLC | Series C-1 Convertible Preferred Stock | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Common stock, conversion basis (in shares) | 19.3648 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 244 | $ 380 | $ 247 | $ 601 |
Net income attributable to noncontrolling interests | (23) | 0 | (28) | 0 |
Net income attributable to redeemable noncontrolling interests | (5) | (6) | (11) | (12) |
Redeemable noncontrolling interest adjustments to redemption value | (6) | 0 | (6) | 0 |
Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 189 | 328 | 180 | 517 |
Series A-1 Convertible Preferred Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Allocation of undistributed income to Series A-1 convertible preferred stock | (21) | (46) | (22) | (72) |
Allocation of undistributed income to Series A-1 convertible preferred stockholders | 21 | 46 | 22 | 72 |
Series A, B and C Common Stock and C1 Preferred Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 189 | 328 | 180 | 517 |
Series A, B and C Common Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 155 | 250 | 145 | 393 |
Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share | 210 | 374 | 202 | 589 |
Series C-1 Convertible Preferred Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 34 | 78 | 35 | 124 |
Net income allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share | $ 34 | $ 78 | $ 35 | $ 124 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Weighted-Average Number of Shares Outstanding) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Series A, B and C Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average number of shares outstanding, basic (in shares) | 523 | 384 | 473 | 387 |
Impact of assumed preferred stock conversion (in shares) | 187 | 192 | 187 | 193 |
Dilutive effect of share-based awards (in shares) | 2 | 2 | 1 | 3 |
Weighted average number of shares outstanding, diluted (in shares) | 712 | 578 | 661 | 583 |
Series C-1 Convertible Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average number of shares outstanding, basic and diluted (in shares) | 6 | 6 | 6 | 6 |
Earnings Per Share (Schedule107
Earnings Per Share (Schedule of Basic and Dilutive Earnings per Share) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Series A, B and C Common Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income per share, basic (in dollars per share) | $ 0.30 | $ 0.65 | $ 0.31 | $ 1.02 |
Net (loss) income per share, diluted (in dollars per share) | 0.30 | 0.64 | 0.31 | 1.01 |
Series C-1 Convertible Preferred Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income per share, basic (in dollars per share) | 5.73 | 12.54 | 5.93 | 19.65 |
Net (loss) income per share, diluted (in dollars per share) | $ 5.72 | $ 12.50 | $ 5.92 | $ 19.56 |
Earnings Per Share (Schedule108
Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Anti-dilutive stock options and RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 11 | 11 | 12 | 10 |
PRSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 2 | 1 | 2 | 1 |
Supplemental Disclosures (Sched
Supplemental Disclosures (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure Text Block Supplement [Abstract] | ||
Accrued payroll and related benefits | $ 421 | $ 535 |
Content rights payable | 304 | 219 |
Accrued interest | 150 | 148 |
Accrued income taxes | 38 | 45 |
Current portion of share-based compensation liabilities | 28 | 12 |
Other accrued liabilities | 532 | 350 |
Total accrued liabilities | $ 1,473 | $ 1,309 |
Supplemental Disclosures (Sc110
Supplemental Disclosures (Schedule of Other Expense, net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | ||||
Foreign currency losses, net | $ (47) | $ (26) | $ (51) | $ (35) |
Gain (loss) on derivative instruments, net | 5 | 1 | 10 | (2) |
Change in the value of common stock equity with readily determinable fair value | (5) | 0 | (43) | 0 |
Interest income | 0 | 0 | 15 | 0 |
Other income, net | 0 | 1 | 0 | 0 |
Total other expense, net | $ (47) | $ (24) | $ (69) | $ (37) |
Supplemental Disclosures (Sc111
Supplemental Disclosures (Schedule of Share-based Proceeds, net) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Tax settlements associated with share-based plans | $ (17) | $ (30) |
Proceeds from issuance of common stock in connection with share-based plans | 43 | 41 |
Proceeds from issuance of common stock in connection with share-based plans | $ 26 | $ 11 |
Supplemental Disclosures (Sc112
Supplemental Disclosures (Schedule of Supplemental Cash Flow Information) (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for taxes, net | $ 119 | $ 199 |
Cash paid for interest, net | $ 381 | $ 184 |
Non-cash investing and financing activities: | ||
Equity issued for the acquisition of Scripps Networks (in shares) | 3,218 | 0 |
Accrued purchases of property and equipment | $ 12 | $ 18 |
Assets acquired under capital lease arrangements | $ 94 | $ 38 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Board of Directors Chairman | Jun. 30, 2018 |
Liberty Global | |
Related Party Transaction [Line Items] | |
Aggregate voting power percentage of a related party | 27.00% |
Liberty Broadband | |
Related Party Transaction [Line Items] | |
Aggregate voting power percentage of a related party | 46.00% |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Related Party Transactions, Revenues and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Total revenues and service charges | $ 228 | $ 174 | $ 432 | $ 347 |
Interest income | 2 | 3 | 2 | 7 |
Expenses | (116) | (40) | (182) | (70) |
Liberty Group | ||||
Related Party Transaction [Line Items] | ||||
Total revenues and service charges | 162 | 128 | 307 | 254 |
Equity method investees | ||||
Related Party Transaction [Line Items] | ||||
Total revenues and service charges | 49 | 38 | 88 | 72 |
Other | ||||
Related Party Transaction [Line Items] | ||||
Total revenues and service charges | $ 17 | $ 8 | $ 37 | $ 21 |
Related Party Transactions (115
Related Party Transactions (Schedule of Related Party Transactions, Receivables) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Receivables | $ 153 | $ 105 |
Note receivable | $ 96 | $ 0 |
Commitments, Contingencies, 116
Commitments, Contingencies, and Guarantees - Commitments (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Operating Leases | |
Amounts representing interest | $ (38) |
Total minimum payments, net | 6,238 |
Capital Leases | |
Total minimum payments, net | 6,238 |
Content | |
Amounts representing interest | (38) |
Total minimum payments, net | 6,238 |
Other | |
Amounts representing interest | (38) |
Total minimum payments, net | 6,238 |
Total | |
2,018 | 977 |
2,019 | 1,290 |
2,020 | 1,239 |
2,021 | 633 |
2,022 | 552 |
Thereafter | 1,585 |
Total minimum payments | 6,276 |
Amounts representing interest | (38) |
Total minimum payments, net | 6,238 |
Operating Leases | |
Operating Leases | |
2,018 | 48 |
2,019 | 91 |
2,020 | 91 |
2,021 | 78 |
2,022 | 49 |
Thereafter | 490 |
Total minimum payments | 847 |
Amounts representing interest | 0 |
Total minimum payments, net | 847 |
Capital Leases | |
Total minimum payments, net | 847 |
Content | |
Amounts representing interest | 0 |
Total minimum payments, net | 847 |
Other | |
Amounts representing interest | 0 |
Total minimum payments, net | 847 |
Total | |
Amounts representing interest | 0 |
Total minimum payments, net | 847 |
Capital Leases | |
Operating Leases | |
Total minimum payments, net | 279 |
Capital Leases | |
2,018 | 31 |
2,019 | 50 |
2,020 | 45 |
2,021 | 40 |
2,022 | 34 |
Thereafter | 117 |
Total minimum payments | 317 |
Amounts representing interest | (38) |
Total minimum payments, net | 279 |
Content | |
Total minimum payments, net | 279 |
Other | |
Total minimum payments, net | 279 |
Total | |
Total minimum payments, net | 279 |
Content | |
Operating Leases | |
Amounts representing interest | 0 |
Total minimum payments, net | 3,783 |
Capital Leases | |
Total minimum payments, net | 3,783 |
Content | |
2,018 | 617 |
2,019 | 725 |
2,020 | 821 |
2,021 | 377 |
2,022 | 383 |
Thereafter | 860 |
Total minimum payments | 3,783 |
Amounts representing interest | 0 |
Total minimum payments, net | 3,783 |
Other | |
Amounts representing interest | 0 |
Total minimum payments, net | 3,783 |
Total | |
Amounts representing interest | 0 |
Total minimum payments, net | 3,783 |
Other | |
Operating Leases | |
Amounts representing interest | 0 |
Total minimum payments, net | 1,329 |
Capital Leases | |
Total minimum payments, net | 1,329 |
Content | |
Amounts representing interest | 0 |
Total minimum payments, net | 1,329 |
Other | |
2,018 | 281 |
2,019 | 424 |
2,020 | 282 |
2,021 | 138 |
2,022 | 86 |
Thereafter | 118 |
Total minimum payments | 1,329 |
Amounts representing interest | 0 |
Total minimum payments, net | 1,329 |
Total | |
Amounts representing interest | 0 |
Total minimum payments, net | $ 1,329 |
Other | Minimum | |
Total | |
Contract termination notice, period without penalty | 30 days |
Other | Maximum | |
Total | |
Contract termination notice, period without penalty | 60 days |
Commitments, Contingencies, 117
Commitments, Contingencies, and Guarantees - Contingencies (Details) - USD ($) | 3 Months Ended | ||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 25, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Other Commitments [Line Items] | |||||||
Redeemable noncontrolling interest balance | $ 410,000,000 | $ 419,000,000 | $ 413,000,000 | $ 237,000,000 | $ 249,000,000 | $ 243,000,000 | |
Guarantor obligations, current carrying value | 0 | 0 | |||||
Material amounts for indemnifications or other contingencies | 0 | $ 0 | |||||
POLAND | |||||||
Other Commitments [Line Items] | |||||||
Liability recorded as a measurement period adjustment | 74,000,000 | ||||||
OWN | |||||||
Other Commitments [Line Items] | |||||||
Redeemable noncontrolling interest balance | 56,000,000 | ||||||
MTG | |||||||
Other Commitments [Line Items] | |||||||
Redeemable noncontrolling interest balance | 121,000,000 | $ 120,000,000 | |||||
Redeemable noncontrolling interest balance, net of redemption value adjustment | 121,000,000 | ||||||
Discovery Family | |||||||
Other Commitments [Line Items] | |||||||
Redeemable noncontrolling interest balance | 206,000,000 | ||||||
Discovery Japan | |||||||
Other Commitments [Line Items] | |||||||
Redeemable noncontrolling interest balance | $ 27,000,000 |
Reportable Segments (Schedule o
Reportable Segments (Schedule of Revenues by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 2,845 | $ 1,745 | $ 5,152 | $ 3,358 |
U.S. Networks | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,780 | 890 | 2,954 | 1,719 |
International Networks | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,051 | 811 | 2,149 | 1,558 |
Education and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 14 | $ 44 | $ 49 | $ 81 |
Reportable Segments (Schedul119
Reportable Segments (Schedule of Adjusted OIBDA by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total Adjusted OIBDA | $ 1,214 | $ 717 | $ 1,911 | $ 1,320 |
Operating Segments | U.S. Networks | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted OIBDA | 983 | 567 | 1,635 | 1,068 |
Operating Segments | International Networks | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted OIBDA | 336 | 236 | 473 | 430 |
Operating Segments | Education and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted OIBDA | 0 | 5 | 3 | (1) |
Corporate and inter-segment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted OIBDA | $ (105) | $ (91) | $ (200) | $ (177) |
Reportable Segments (Schedul120
Reportable Segments (Schedule of Reconciliation of Adjusted OIBDA to Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Net income available to Discovery, Inc. | $ 216 | $ 374 | $ 208 | $ 589 |
Net income attributable to redeemable noncontrolling interests | 5 | 6 | 11 | 12 |
Net income attributable to noncontrolling interests | 23 | 0 | 28 | 0 |
Income tax expense | 123 | 93 | 103 | 148 |
Income before income taxes | 367 | 473 | 350 | 749 |
Other expense, net | 47 | 24 | 69 | 37 |
Loss from equity investees, net | 40 | 42 | 62 | 95 |
Loss on extinguishment of debt | 0 | 0 | 0 | 54 |
Interest expense | 196 | 91 | 373 | 182 |
Operating income | 650 | 630 | 854 | 1,117 |
Restructuring and other charges | 187 | 8 | 428 | 32 |
Depreciation and amortization | 410 | 80 | 603 | 160 |
Mark-to-market share-based compensation | 26 | (5) | 29 | 7 |
Scripps Networks transaction and integration costs | 25 | 0 | 81 | 0 |
Total Adjusted OIBDA | $ 1,214 | $ 717 | $ 1,911 | $ 1,320 |
Reportable Segments (Schedul121
Reportable Segments (Schedule of Total Assets by Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 33,492 | $ 22,555 |
Corporate and inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 6,475 | 12,847 |
Operating Segments | U.S. Networks | ||
Segment Reporting Information [Line Items] | ||
Total assets | 19,625 | 4,127 |
Operating Segments | International Networks | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,124 | 5,187 |
Operating Segments | Education and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 268 | 394 |
Corporate and inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ (18,535) | $ (19,327) |
Restructuring and Other Char122
Restructuring and Other Charges (By Reporting Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | $ 187 | $ 8 | $ 428 | $ 32 |
U.S. Networks | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | 19 | 0 | 53 | 4 |
International Networks | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | 146 | 4 | 246 | 21 |
Education and Other | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | 1 | 0 | 1 | 1 |
Corporate and inter-segment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | $ 21 | $ 4 | $ 128 | $ 6 |
Restructuring And Other Char123
Restructuring And Other Charges (Total) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | $ 87 | $ 4 | $ 251 | $ 28 |
Other charges | 100 | 4 | 177 | 4 |
Total restructuring and other charges | $ 187 | $ 8 | $ 428 | $ 32 |
Restructuring and Other Char124
Restructuring and Other Charges (Liabilities) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Restructuring Reserve | |
December 31, 2017 | $ 43 |
Net Accruals | 244 |
Cash Paid | (158) |
June 30, 2018 | 129 |
Equity awards exchanged for shares | 52 |
Scripps Networks | |
Restructuring Reserve | |
Equity awards exchanged for shares | 7 |
Contract Terminations | |
Restructuring Reserve | |
December 31, 2017 | 1 |
Net Accruals | 50 |
Cash Paid | (29) |
June 30, 2018 | 22 |
Employee Terminations | |
Restructuring Reserve | |
December 31, 2017 | 42 |
Net Accruals | 194 |
Cash Paid | (129) |
June 30, 2018 | $ 107 |
Condensed Consolidating Fina125
Condensed Consolidating Financial Statements (Narrative) (Details) - USD ($) $ in Millions | Apr. 03, 2018 | Jun. 30, 2018 | Mar. 06, 2018 |
Condensed Financial Information Disclosure [Abstract] | |||
Direct ownership percentage in Discovery Communications Holding, LLC | 33.30% | ||
Indirect ownership percentage in Discovery Communications Holding, LLC | 66.70% | ||
Scripps Senior Notes | Senior Notes | |||
Business Acquisition [Line Items] | |||
Debt conversion, original debt, amount | $ 2,300 | ||
Scripps Senior Notes | Senior Notes | Scripps Networks | |||
Business Acquisition [Line Items] | |||
Principal amount of liabilities assumed | $ 2,500 | ||
Un-exchanged Scripps Senior Notes | Senior Notes | Scripps Networks | |||
Business Acquisition [Line Items] | |||
Principal amount of liabilities assumed | $ 243 |
Condensed Consolidating Fina126
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 392 | $ 7,309 | $ 206 | $ 300 |
Receivables, net | 2,747 | 1,838 | ||
Content rights, net | 358 | 410 | ||
Prepaid expenses and other current assets | 409 | 434 | ||
Total current assets | 3,906 | 9,991 | ||
Noncurrent content rights, net | 3,258 | 2,213 | ||
Assets held for sale | 68 | 0 | ||
Goodwill, net | 13,119 | 7,073 | ||
Intangible assets, net | 10,368 | 1,770 | ||
Equity method investments, including note receivable (See Note 3) | 1,023 | 335 | ||
Other noncurrent assets | 966 | 576 | ||
Total assets | 33,492 | 22,555 | ||
Current liabilities: | ||||
Current portion of debt | 646 | 30 | ||
Total current liabilities | 2,696 | 1,871 | ||
Noncurrent portion of debt | 17,683 | 14,755 | ||
Other noncurrent liabilities | 1,109 | 587 | ||
Total liabilities | 23,456 | 17,532 | ||
Redeemable noncontrolling interests | 410 | 413 | ||
Noncontrolling interests | 1,690 | 0 | ||
Total equity | 9,626 | 4,610 | ||
Total liabilities and equity | 33,492 | 22,555 | ||
Reclassifications and Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ||
Content rights, net | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Inter-company trade receivables, net | (182) | (205) | ||
Total current assets | (182) | (205) | ||
Investment in and advances to subsidiaries | (18,333) | (19,102) | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments, including note receivable (See Note 3) | 0 | 0 | ||
Other noncurrent assets | (20) | (20) | ||
Total assets | (18,535) | (19,327) | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Inter-company trade payables, net | (182) | (205) | ||
Total current liabilities | (182) | (205) | ||
Noncurrent portion of debt | 0 | 0 | ||
Other noncurrent liabilities | (19) | (20) | ||
Total liabilities | (201) | (225) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Equity attributable to Discovery, Inc. | (20,024) | |||
Noncontrolling interests | 1,690 | |||
Total equity | (18,334) | (19,102) | ||
Total liabilities and equity | (18,535) | (19,327) | ||
Discovery | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ||
Content rights, net | 0 | 0 | ||
Prepaid expenses and other current assets | 20 | 49 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 20 | 49 | ||
Investment in and advances to subsidiaries | 7,918 | 4,563 | ||
Noncurrent content rights, net | 0 | 0 | ||
Assets held for sale | 0 | |||
Goodwill, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments, including note receivable (See Note 3) | 0 | 0 | ||
Other noncurrent assets | 0 | 0 | ||
Total assets | 7,938 | 4,612 | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Noncurrent portion of debt | 0 | 0 | ||
Other noncurrent liabilities | 2 | 2 | ||
Total liabilities | 2 | 2 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Equity attributable to Discovery, Inc. | 7,936 | |||
Noncontrolling interests | 0 | |||
Total equity | 7,936 | 4,610 | ||
Total liabilities and equity | 7,938 | 4,612 | ||
Scripps Networks | ||||
Current assets: | ||||
Cash and cash equivalents | 47 | 0 | ||
Receivables, net | 0 | |||
Content rights, net | 0 | |||
Prepaid expenses and other current assets | 53 | |||
Inter-company trade receivables, net | 0 | |||
Total current assets | 100 | |||
Investment in and advances to subsidiaries | 13,795 | |||
Noncurrent content rights, net | 0 | |||
Assets held for sale | 0 | |||
Goodwill, net | 0 | |||
Intangible assets, net | 0 | |||
Equity method investments, including note receivable (See Note 3) | 96 | |||
Other noncurrent assets | 0 | |||
Total assets | 13,991 | |||
Current liabilities: | ||||
Current portion of debt | 0 | |||
Other current liabilities | 83 | |||
Inter-company trade payables, net | 0 | |||
Total current liabilities | 83 | |||
Noncurrent portion of debt | 241 | |||
Other noncurrent liabilities | 86 | |||
Total liabilities | 410 | |||
Redeemable noncontrolling interests | 0 | |||
Equity attributable to Discovery, Inc. | 13,581 | |||
Noncontrolling interests | 0 | |||
Total equity | 13,581 | |||
Total liabilities and equity | 13,991 | |||
DCH | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ||
Content rights, net | 0 | 0 | ||
Prepaid expenses and other current assets | 31 | 32 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 31 | 32 | ||
Investment in and advances to subsidiaries | (5,945) | 4,532 | ||
Noncurrent content rights, net | 0 | 0 | ||
Assets held for sale | 0 | |||
Goodwill, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments, including note receivable (See Note 3) | 0 | 0 | ||
Other noncurrent assets | 20 | 20 | ||
Total assets | (5,894) | 4,584 | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Noncurrent portion of debt | 0 | 0 | ||
Other noncurrent liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Equity attributable to Discovery, Inc. | (5,894) | |||
Noncontrolling interests | 0 | |||
Total equity | (5,894) | 4,584 | ||
Total liabilities and equity | (5,894) | 4,584 | ||
DCL | ||||
Current assets: | ||||
Cash and cash equivalents | 25 | 6,800 | 8 | 20 |
Receivables, net | 474 | 410 | ||
Content rights, net | 3 | 4 | ||
Prepaid expenses and other current assets | 33 | 204 | ||
Inter-company trade receivables, net | 182 | 205 | ||
Total current assets | 717 | 7,623 | ||
Investment in and advances to subsidiaries | 6,494 | 6,951 | ||
Noncurrent content rights, net | 676 | 672 | ||
Assets held for sale | 68 | |||
Goodwill, net | 3,678 | 3,677 | ||
Intangible assets, net | 256 | 259 | ||
Equity method investments, including note receivable (See Note 3) | 23 | 25 | ||
Other noncurrent assets | 516 | 364 | ||
Total assets | 12,428 | 19,571 | ||
Current liabilities: | ||||
Current portion of debt | 608 | 7 | ||
Other current liabilities | 339 | 572 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 947 | 579 | ||
Noncurrent portion of debt | 16,858 | 14,163 | ||
Other noncurrent liabilities | 568 | 297 | ||
Total liabilities | 18,373 | 15,039 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Equity attributable to Discovery, Inc. | (5,945) | |||
Noncontrolling interests | 0 | |||
Total equity | (5,945) | 4,532 | ||
Total liabilities and equity | 12,428 | 19,571 | ||
Non-Guarantor Subsidiaries of DCL | ||||
Current assets: | ||||
Cash and cash equivalents | 246 | 509 | 198 | 280 |
Receivables, net | 1,350 | 1,428 | ||
Content rights, net | 269 | 406 | ||
Prepaid expenses and other current assets | 155 | 149 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 2,020 | 2,492 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 1,576 | 1,541 | ||
Assets held for sale | 0 | |||
Goodwill, net | 3,316 | 3,396 | ||
Intangible assets, net | 1,377 | 1,511 | ||
Equity method investments, including note receivable (See Note 3) | 317 | 310 | ||
Other noncurrent assets | 772 | 809 | ||
Total assets | 9,378 | 10,059 | ||
Current liabilities: | ||||
Current portion of debt | 27 | 23 | ||
Other current liabilities | 1,147 | 1,269 | ||
Inter-company trade payables, net | 182 | 205 | ||
Total current liabilities | 1,356 | 1,497 | ||
Noncurrent portion of debt | 544 | 592 | ||
Other noncurrent liabilities | 574 | 606 | ||
Total liabilities | 2,474 | 2,695 | ||
Redeemable noncontrolling interests | 410 | 413 | ||
Equity attributable to Discovery, Inc. | 6,494 | |||
Noncontrolling interests | 0 | |||
Total equity | 6,494 | 6,951 | ||
Total liabilities and equity | 9,378 | 10,059 | ||
Other Non- Guarantor Subsidiaries of Discovery | ||||
Current assets: | ||||
Cash and cash equivalents | 74 | 0 | 0 | 0 |
Receivables, net | 923 | 0 | ||
Content rights, net | 86 | 0 | ||
Prepaid expenses and other current assets | 117 | 0 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 1,200 | 0 | ||
Investment in and advances to subsidiaries | (3,929) | 3,056 | ||
Noncurrent content rights, net | 1,006 | 0 | ||
Assets held for sale | 0 | |||
Goodwill, net | 6,125 | 0 | ||
Intangible assets, net | 8,735 | 0 | ||
Equity method investments, including note receivable (See Note 3) | 587 | 0 | ||
Other noncurrent assets | 462 | 0 | ||
Total assets | 14,186 | 3,056 | ||
Current liabilities: | ||||
Current portion of debt | 11 | 0 | ||
Other current liabilities | 481 | 0 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 492 | 0 | ||
Noncurrent portion of debt | 40 | 0 | ||
Other noncurrent liabilities | 1,866 | 21 | ||
Total liabilities | 2,398 | 21 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Equity attributable to Discovery, Inc. | 11,788 | |||
Noncontrolling interests | 0 | |||
Total equity | 11,788 | 3,035 | ||
Total liabilities and equity | 14,186 | 3,056 | ||
Discovery and Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 392 | 7,309 | $ 206 | $ 300 |
Receivables, net | 2,747 | 1,838 | ||
Content rights, net | 358 | 410 | ||
Prepaid expenses and other current assets | 409 | 434 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 3,906 | 9,991 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 3,258 | 2,213 | ||
Assets held for sale | 68 | |||
Goodwill, net | 13,119 | 7,073 | ||
Intangible assets, net | 10,368 | 1,770 | ||
Equity method investments, including note receivable (See Note 3) | 1,023 | 335 | ||
Other noncurrent assets | 1,750 | 1,173 | ||
Total assets | 33,492 | 22,555 | ||
Current liabilities: | ||||
Current portion of debt | 646 | 30 | ||
Other current liabilities | 2,050 | 1,841 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 2,696 | 1,871 | ||
Noncurrent portion of debt | 17,683 | 14,755 | ||
Other noncurrent liabilities | 3,077 | 906 | ||
Total liabilities | 23,456 | 17,532 | ||
Redeemable noncontrolling interests | 410 | 413 | ||
Equity attributable to Discovery, Inc. | 7,936 | |||
Noncontrolling interests | 1,690 | |||
Total equity | 9,626 | 4,610 | ||
Total liabilities and equity | $ 33,492 | $ 22,555 |
Condensed Consolidating Fina127
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 2,845 | $ 1,745 | $ 5,152 | $ 3,358 |
Costs of revenues, excluding depreciation and amortization | 995 | 634 | 2,055 | 1,241 |
Selling, general and administrative | 687 | 389 | 1,296 | 804 |
Depreciation and amortization | 410 | 80 | 603 | 160 |
Restructuring and other charges | 187 | 8 | 428 | 32 |
(Gain) loss on disposition | (84) | 4 | (84) | 4 |
Total costs and expenses | 2,195 | 1,115 | 4,298 | 2,241 |
Operating income | 650 | 630 | 854 | 1,117 |
Loss on extinguishment of debt | 0 | 0 | 0 | (54) |
Income (loss) from equity investees, net | (40) | (42) | (62) | (95) |
Other income (expense), net | (47) | (24) | (69) | (37) |
Income before income taxes | 367 | 473 | 350 | 749 |
Income tax benefit (expense) | (123) | (93) | (103) | (148) |
Net income | 244 | 380 | 247 | 601 |
Net income attributable to noncontrolling interests | (23) | 0 | (28) | 0 |
Net income attributable to redeemable noncontrolling interests | (5) | (6) | (11) | (12) |
Net income available to Discovery, Inc. | 216 | 374 | 208 | 589 |
Reclassifications and Eliminations | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | (7) | (4) | (10) | (7) |
Costs of revenues, excluding depreciation and amortization | 3 | 0 | (2) | 0 |
Selling, general and administrative | (10) | (4) | (8) | (7) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Restructuring and other charges | (2) | 0 | (2) | 0 |
(Gain) loss on disposition | 0 | 0 | 0 | 0 |
Total costs and expenses | (9) | (4) | (12) | (7) |
Operating income | 2 | 0 | 2 | 0 |
Equity in earnings of subsidiaries | (614) | (1,248) | (714) | (1,969) |
Interest income (expense) | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | |||
Income (loss) from equity investees, net | 0 | 0 | 0 | 0 |
Other income (expense), net | (1) | 0 | (1) | 0 |
Income before income taxes | (613) | (1,248) | (713) | (1,969) |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Net income | (613) | (1,248) | (713) | (1,969) |
Net income attributable to noncontrolling interests | (23) | (28) | ||
Net income attributable to redeemable noncontrolling interests | (5) | (6) | (11) | (12) |
Net income available to Discovery, Inc. | (641) | (1,254) | (752) | (1,981) |
Discovery | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Costs of revenues, excluding depreciation and amortization | 0 | 0 | 0 | 0 |
Selling, general and administrative | 5 | 5 | 31 | 9 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Restructuring and other charges | 1 | 0 | 9 | 0 |
(Gain) loss on disposition | 0 | 0 | 0 | 0 |
Total costs and expenses | 6 | 5 | 40 | 9 |
Operating income | (6) | (5) | (40) | (9) |
Equity in earnings of subsidiaries | 222 | 376 | 239 | 594 |
Interest income (expense) | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | |||
Income (loss) from equity investees, net | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Income before income taxes | 216 | 371 | 199 | 585 |
Income tax benefit (expense) | 1 | 3 | 9 | 4 |
Net income | 217 | 374 | 208 | 589 |
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Discovery, Inc. | 217 | 374 | 208 | 589 |
Scripps Networks | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | ||
Costs of revenues, excluding depreciation and amortization | 0 | 0 | ||
Selling, general and administrative | 1 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Restructuring and other charges | 0 | 0 | ||
(Gain) loss on disposition | 0 | 0 | ||
Total costs and expenses | 1 | 0 | ||
Operating income | (1) | 0 | ||
Equity in earnings of subsidiaries | 82 | 38 | ||
Interest income (expense) | (2) | 4 | ||
Income (loss) from equity investees, net | 0 | 0 | ||
Other income (expense), net | 1 | 2 | ||
Income before income taxes | 84 | 36 | ||
Income tax benefit (expense) | 0 | 0 | ||
Net income | 84 | 36 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | ||
Net income available to Discovery, Inc. | 84 | 36 | ||
DCH | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Costs of revenues, excluding depreciation and amortization | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Restructuring and other charges | 0 | 0 | 0 | 0 |
(Gain) loss on disposition | 0 | 0 | 0 | 0 |
Total costs and expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | 154 | 376 | 225 | 594 |
Interest income (expense) | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | |||
Income (loss) from equity investees, net | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Income before income taxes | 154 | 376 | 225 | 594 |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Net income | 154 | 376 | 225 | 594 |
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Discovery, Inc. | 154 | 376 | 225 | 594 |
DCL | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 506 | 525 | 994 | 1,016 |
Costs of revenues, excluding depreciation and amortization | 107 | 112 | 214 | 220 |
Selling, general and administrative | 87 | 56 | 167 | 130 |
Depreciation and amortization | 11 | 11 | 28 | 23 |
Restructuring and other charges | 16 | 3 | 59 | 19 |
(Gain) loss on disposition | 0 | 0 | 0 | 0 |
Total costs and expenses | 221 | 182 | 468 | 392 |
Operating income | 285 | 343 | 526 | 624 |
Equity in earnings of subsidiaries | 53 | 245 | 62 | 385 |
Interest income (expense) | 188 | 83 | 345 | 169 |
Loss on extinguishment of debt | (54) | |||
Income (loss) from equity investees, net | 1 | 0 | 1 | 1 |
Other income (expense), net | 73 | (62) | 49 | (89) |
Income before income taxes | 224 | 443 | 293 | 698 |
Income tax benefit (expense) | (70) | (67) | (68) | (104) |
Net income | 154 | 376 | 225 | 594 |
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Discovery, Inc. | 154 | 376 | 225 | 594 |
Non-Guarantor Subsidiaries of DCL | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 1,385 | 1,224 | 2,934 | 2,349 |
Costs of revenues, excluding depreciation and amortization | 593 | 522 | 1,459 | 1,021 |
Selling, general and administrative | 417 | 332 | 853 | 672 |
Depreciation and amortization | 100 | 69 | 193 | 137 |
Restructuring and other charges | 137 | 5 | 235 | 13 |
(Gain) loss on disposition | 84 | (4) | (84) | 4 |
Total costs and expenses | 1,163 | 932 | 2,656 | 1,847 |
Operating income | 222 | 292 | 278 | 502 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Interest income (expense) | 10 | 8 | 22 | 13 |
Loss on extinguishment of debt | 0 | |||
Income (loss) from equity investees, net | (46) | (42) | (77) | (96) |
Other income (expense), net | (82) | 38 | (78) | 52 |
Income before income taxes | 84 | 280 | 101 | 445 |
Income tax benefit (expense) | (26) | (29) | (28) | (48) |
Net income | 58 | 251 | 73 | 397 |
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Discovery, Inc. | 58 | 251 | 73 | 397 |
Other Non- Guarantor Subsidiaries of Discovery | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 961 | 0 | 1,234 | 0 |
Costs of revenues, excluding depreciation and amortization | 292 | 0 | 384 | 0 |
Selling, general and administrative | 187 | 0 | 253 | 0 |
Depreciation and amortization | 299 | 0 | 382 | 0 |
Restructuring and other charges | 35 | 0 | 127 | 0 |
(Gain) loss on disposition | 0 | 0 | 0 | 0 |
Total costs and expenses | 813 | 0 | 1,146 | 0 |
Operating income | 148 | 0 | 88 | 0 |
Equity in earnings of subsidiaries | 103 | 251 | 150 | 396 |
Interest income (expense) | 0 | 0 | 2 | 0 |
Loss on extinguishment of debt | 0 | |||
Income (loss) from equity investees, net | 5 | 0 | 14 | 0 |
Other income (expense), net | (38) | 0 | (41) | 0 |
Income before income taxes | 218 | 251 | 209 | 396 |
Income tax benefit (expense) | (28) | 0 | (16) | 0 |
Net income | 190 | 251 | 193 | 396 |
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Discovery, Inc. | 190 | 251 | 193 | 396 |
Discovery and Subsidiaries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 2,845 | 1,745 | 5,152 | 3,358 |
Costs of revenues, excluding depreciation and amortization | 995 | 634 | 2,055 | 1,241 |
Selling, general and administrative | 687 | 389 | 1,296 | 804 |
Depreciation and amortization | 410 | 80 | 603 | 160 |
Restructuring and other charges | 187 | 8 | 428 | 32 |
(Gain) loss on disposition | 84 | (4) | (84) | 4 |
Total costs and expenses | 2,195 | 1,115 | 4,298 | 2,241 |
Operating income | 650 | 630 | 854 | 1,117 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Interest income (expense) | 196 | 91 | 373 | 182 |
Loss on extinguishment of debt | (54) | |||
Income (loss) from equity investees, net | (40) | (42) | (62) | (95) |
Other income (expense), net | (47) | (24) | (69) | (37) |
Income before income taxes | 367 | 473 | 350 | 749 |
Income tax benefit (expense) | (123) | (93) | (103) | (148) |
Net income | 244 | 380 | 247 | 601 |
Net income attributable to noncontrolling interests | (23) | (28) | ||
Net income attributable to redeemable noncontrolling interests | (5) | (6) | (11) | (12) |
Net income available to Discovery, Inc. | $ 216 | $ 374 | $ 208 | $ 589 |
Condensed Consolidating Fina128
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net income | $ 244 | $ 380 | $ 247 | $ 601 |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (206) | 91 | (203) | 159 |
Available-for-sale securities | 0 | 5 | 0 | 4 |
Derivatives | 29 | (9) | 24 | (17) |
Comprehensive income | 67 | 467 | 68 | 747 |
Comprehensive income attributable to noncontrolling interests | (23) | 0 | (28) | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | (5) | (6) | (11) | (13) |
Comprehensive income attributable to Discovery, Inc. | 39 | 461 | 29 | 734 |
Reclassifications and Eliminations | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | (613) | (1,248) | (713) | (1,969) |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | 589 | (334) | 464 | (583) |
Available-for-sale securities | (19) | (15) | ||
Derivatives | (106) | 33 | (88) | 63 |
Comprehensive income | (130) | (1,568) | (337) | (2,504) |
Comprehensive income attributable to noncontrolling interests | (23) | (28) | ||
Comprehensive income attributable to redeemable noncontrolling interests | (14) | (6) | (11) | (8) |
Comprehensive income attributable to Discovery, Inc. | (167) | (1,574) | (376) | (2,512) |
Discovery | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 217 | 374 | 208 | 589 |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (206) | 91 | (203) | 159 |
Available-for-sale securities | 5 | 4 | ||
Derivatives | 29 | (9) | 24 | (17) |
Comprehensive income | 40 | 461 | 29 | 735 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to redeemable noncontrolling interests | 2 | 0 | 0 | (1) |
Comprehensive income attributable to Discovery, Inc. | 42 | 461 | 29 | 734 |
Scripps Networks | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 84 | 36 | ||
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (197) | (177) | ||
Derivatives | 0 | 0 | ||
Comprehensive income | (113) | (141) | ||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to redeemable noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to Discovery, Inc. | (113) | (141) | ||
DCH | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 154 | 376 | 225 | 594 |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (49) | 91 | (26) | 159 |
Available-for-sale securities | 5 | 4 | ||
Derivatives | 29 | (9) | 24 | (17) |
Comprehensive income | 134 | 463 | 223 | 740 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to redeemable noncontrolling interests | 2 | 0 | 0 | (1) |
Comprehensive income attributable to Discovery, Inc. | 136 | 463 | 223 | 739 |
DCL | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 154 | 376 | 225 | 594 |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (49) | 91 | (26) | 159 |
Available-for-sale securities | 5 | 4 | ||
Derivatives | 29 | (9) | 24 | (17) |
Comprehensive income | 134 | 463 | 223 | 740 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to redeemable noncontrolling interests | 2 | 0 | 0 | (1) |
Comprehensive income attributable to Discovery, Inc. | 136 | 463 | 223 | 739 |
Non-Guarantor Subsidiaries of DCL | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 58 | 251 | 73 | 397 |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (64) | 91 | (41) | 159 |
Available-for-sale securities | 5 | 4 | ||
Derivatives | 29 | (9) | 24 | (18) |
Comprehensive income | 23 | 338 | 56 | 542 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to redeemable noncontrolling interests | 2 | 0 | 0 | (1) |
Comprehensive income attributable to Discovery, Inc. | 25 | 338 | 56 | 541 |
Other Non- Guarantor Subsidiaries of Discovery | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 190 | 251 | 193 | 396 |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (230) | 61 | (194) | 106 |
Available-for-sale securities | 4 | 3 | ||
Derivatives | 19 | (6) | 16 | (11) |
Comprehensive income | (21) | 310 | 15 | 494 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to redeemable noncontrolling interests | 1 | 0 | 0 | (1) |
Comprehensive income attributable to Discovery, Inc. | (20) | 310 | 15 | 493 |
Discovery and Subsidiaries | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 244 | 380 | 247 | 601 |
Other comprehensive (loss) income adjustments, net of tax: | ||||
Currency translation | (206) | 91 | (203) | 159 |
Available-for-sale securities | 5 | 4 | ||
Derivatives | 29 | (9) | 24 | (17) |
Comprehensive income | 67 | 467 | 68 | 747 |
Comprehensive income attributable to noncontrolling interests | (23) | (28) | ||
Comprehensive income attributable to redeemable noncontrolling interests | (5) | (6) | (11) | (13) |
Comprehensive income attributable to Discovery, Inc. | $ 39 | $ 461 | $ 29 | $ 734 |
Condensed Consolidating Fina129
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Investing Activities | ||
Business acquisitions, net of cash acquired | $ (8,565) | $ 0 |
Payments for investments | (48) | (270) |
Proceeds from disposition, net of cash disposed | 107 | 29 |
Purchases of property and equipment | (82) | (78) |
Distributions from equity method investees | 0 | 18 |
Proceeds from derivative instruments, net | 1 | 5 |
Other investing activities, net | 4 | 3 |
Cash used in investing activities | (8,583) | (293) |
Financing Activities | ||
Commercial paper borrowings, net | 579 | 25 |
Borrowings under revolving credit facility | 0 | 350 |
Principal repayments of revolving credit facility | (50) | (200) |
Borrowings under term loan facilities | 2,000 | 0 |
Borrowings from debt, net of discount and including premiums | 0 | 659 |
Principal repayments of debt, including discount payment and premiums to par value | 0 | (650) |
Principal repayments of capital lease obligations | (25) | (19) |
Repurchases of stock | 0 | (501) |
Cash settlement of common stock repurchase contracts | 58 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (59) | (20) |
Share-based plan proceeds, net | 26 | 11 |
Borrowings under program financing line of credit | 23 | 0 |
Share-based plan proceeds, net | 43 | 41 |
Inter-company contributions and other financing activities, net | (17) | (8) |
Cash provided by (used in) financing activities | 977 | (295) |
Effect of exchange rate changes on cash and cash equivalents | (27) | 51 |
Net change in cash and cash equivalents | (6,917) | (94) |
Cash and cash equivalents, beginning of period | 7,309 | 300 |
Cash and cash equivalents, end of period | 392 | 206 |
Reclassifications and Eliminations | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 0 | 0 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Payments for investments | 0 | 0 |
Proceeds from disposition, net of cash disposed | 0 | 0 |
Purchases of property and equipment | 0 | 0 |
Distributions from equity method investees | 0 | |
Proceeds from derivative instruments, net | 0 | |
Proceeds from derivative instruments, net | 0 | |
Other investing activities, net | (8) | (27) |
Cash used in investing activities | (8) | (27) |
Financing Activities | ||
Commercial paper borrowings, net | 0 | 0 |
Borrowings under revolving credit facility | 0 | |
Principal repayments of revolving credit facility | 0 | 0 |
Borrowings under term loan facilities | 0 | |
Principal (repayments) borrowings of term loans | 0 | |
Borrowings from debt, net of discount and including premiums | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of capital lease obligations | 0 | 0 |
Repurchases of stock | 0 | |
Cash settlement of common stock repurchase contracts | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | |
Share-based plan proceeds, net | 0 | |
Borrowings under program financing line of credit | 0 | |
Distributions to redeemable noncontrolling interests | 0 | |
Share-based plan proceeds, net | 0 | |
Inter-company contributions and other financing activities, net | 8 | 27 |
Cash provided by (used in) financing activities | 8 | 27 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Discovery | ||
Operating Activities | ||
Cash provided by (used in) operating activities | (100) | 37 |
Investing Activities | ||
Business acquisitions, net of cash acquired | (8,714) | |
Payments for investments | 0 | 0 |
Proceeds from disposition, net of cash disposed | 0 | 0 |
Purchases of property and equipment | 0 | 0 |
Distributions from equity method investees | 0 | |
Proceeds from derivative instruments, net | 0 | |
Proceeds from derivative instruments, net | 0 | |
Other investing activities, net | 0 | 0 |
Cash used in investing activities | (8,714) | 0 |
Financing Activities | ||
Commercial paper borrowings, net | 0 | 0 |
Borrowings under revolving credit facility | 0 | |
Principal repayments of revolving credit facility | 0 | 0 |
Borrowings under term loan facilities | 0 | |
Principal (repayments) borrowings of term loans | 0 | |
Borrowings from debt, net of discount and including premiums | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of capital lease obligations | 0 | 0 |
Repurchases of stock | (501) | |
Cash settlement of common stock repurchase contracts | 58 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | |
Share-based plan proceeds, net | 26 | |
Borrowings under program financing line of credit | 0 | |
Distributions to redeemable noncontrolling interests | 0 | |
Share-based plan proceeds, net | 11 | |
Inter-company contributions and other financing activities, net | 8,788 | 395 |
Cash provided by (used in) financing activities | 8,814 | (37) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Scripps Networks | ||
Operating Activities | ||
Cash provided by (used in) operating activities | (14) | |
Investing Activities | ||
Business acquisitions, net of cash acquired | 54 | |
Payments for investments | 0 | |
Proceeds from disposition, net of cash disposed | 0 | |
Purchases of property and equipment | 0 | |
Proceeds from derivative instruments, net | 0 | |
Other investing activities, net | 7 | |
Cash used in investing activities | 61 | |
Financing Activities | ||
Commercial paper borrowings, net | 0 | |
Principal repayments of revolving credit facility | 0 | |
Borrowings under term loan facilities | 0 | |
Principal (repayments) borrowings of term loans | 0 | |
Principal repayments of capital lease obligations | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | |
Share-based plan proceeds, net | 0 | |
Borrowings under program financing line of credit | 0 | |
Inter-company contributions and other financing activities, net | 0 | |
Cash provided by (used in) financing activities | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | |
Net change in cash and cash equivalents | 47 | |
Cash and cash equivalents, beginning of period | 0 | |
Cash and cash equivalents, end of period | 47 | |
DCH | ||
Operating Activities | ||
Cash provided by (used in) operating activities | (8) | (5) |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Payments for investments | 0 | 0 |
Proceeds from disposition, net of cash disposed | 0 | 0 |
Purchases of property and equipment | 0 | 0 |
Distributions from equity method investees | 0 | |
Proceeds from derivative instruments, net | 0 | |
Proceeds from derivative instruments, net | 0 | |
Other investing activities, net | 0 | 0 |
Cash used in investing activities | 0 | 0 |
Financing Activities | ||
Commercial paper borrowings, net | 0 | 0 |
Borrowings under revolving credit facility | 0 | |
Principal repayments of revolving credit facility | 0 | 0 |
Borrowings under term loan facilities | 0 | |
Principal (repayments) borrowings of term loans | 0 | |
Borrowings from debt, net of discount and including premiums | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of capital lease obligations | 0 | 0 |
Repurchases of stock | 0 | |
Cash settlement of common stock repurchase contracts | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | |
Share-based plan proceeds, net | 0 | |
Borrowings under program financing line of credit | 0 | |
Distributions to redeemable noncontrolling interests | 0 | |
Share-based plan proceeds, net | 0 | |
Inter-company contributions and other financing activities, net | 8 | 5 |
Cash provided by (used in) financing activities | 8 | 5 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
DCL | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 156 | (22) |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Payments for investments | (10) | (7) |
Proceeds from disposition, net of cash disposed | 0 | 0 |
Purchases of property and equipment | (12) | (26) |
Distributions from equity method investees | 0 | |
Proceeds from derivative instruments, net | 0 | |
Proceeds from derivative instruments, net | 0 | |
Other investing activities, net | 8 | 27 |
Cash used in investing activities | (14) | (6) |
Financing Activities | ||
Commercial paper borrowings, net | 579 | 25 |
Borrowings under revolving credit facility | 350 | |
Principal repayments of revolving credit facility | 0 | (200) |
Borrowings under term loan facilities | 2,000 | |
Principal (repayments) borrowings of term loans | (1,500) | |
Borrowings from debt, net of discount and including premiums | 659 | |
Principal repayments of debt, including discount payment and premiums to par value | (650) | |
Principal repayments of capital lease obligations | (4) | (3) |
Repurchases of stock | 0 | |
Cash settlement of common stock repurchase contracts | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (19) | |
Share-based plan proceeds, net | 0 | |
Borrowings under program financing line of credit | 23 | |
Distributions to redeemable noncontrolling interests | 0 | |
Share-based plan proceeds, net | 0 | |
Inter-company contributions and other financing activities, net | (7,996) | (165) |
Cash provided by (used in) financing activities | (6,917) | 16 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | (6,775) | (12) |
Cash and cash equivalents, beginning of period | 6,800 | 20 |
Cash and cash equivalents, end of period | 25 | 8 |
Non-Guarantor Subsidiaries of DCL | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 405 | 433 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | |
Payments for investments | (45) | (263) |
Proceeds from disposition, net of cash disposed | 107 | 29 |
Purchases of property and equipment | (56) | (52) |
Distributions from equity method investees | 18 | |
Proceeds from derivative instruments, net | 1 | |
Proceeds from derivative instruments, net | 5 | |
Other investing activities, net | 5 | 3 |
Cash used in investing activities | 12 | (260) |
Financing Activities | ||
Commercial paper borrowings, net | 0 | 0 |
Borrowings under revolving credit facility | 0 | |
Principal repayments of revolving credit facility | (50) | 0 |
Borrowings under term loan facilities | 0 | |
Principal (repayments) borrowings of term loans | 0 | |
Borrowings from debt, net of discount and including premiums | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of capital lease obligations | (17) | (16) |
Repurchases of stock | 0 | |
Cash settlement of common stock repurchase contracts | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (2) | |
Share-based plan proceeds, net | 0 | |
Borrowings under program financing line of credit | 0 | |
Distributions to redeemable noncontrolling interests | 20 | |
Share-based plan proceeds, net | 0 | |
Inter-company contributions and other financing activities, net | (589) | (270) |
Cash provided by (used in) financing activities | (658) | (306) |
Effect of exchange rate changes on cash and cash equivalents | (22) | 51 |
Net change in cash and cash equivalents | (263) | (82) |
Cash and cash equivalents, beginning of period | 509 | 280 |
Cash and cash equivalents, end of period | 246 | 198 |
Other Non- Guarantor Subsidiaries of Discovery | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 277 | 0 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 95 | |
Payments for investments | 7 | 0 |
Proceeds from disposition, net of cash disposed | 0 | 0 |
Purchases of property and equipment | (14) | 0 |
Distributions from equity method investees | 0 | |
Proceeds from derivative instruments, net | 0 | |
Proceeds from derivative instruments, net | 0 | |
Other investing activities, net | (8) | 0 |
Cash used in investing activities | 80 | 0 |
Financing Activities | ||
Commercial paper borrowings, net | 0 | 0 |
Borrowings under revolving credit facility | 0 | |
Principal repayments of revolving credit facility | 0 | 0 |
Borrowings under term loan facilities | 0 | |
Principal (repayments) borrowings of term loans | 0 | |
Borrowings from debt, net of discount and including premiums | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of capital lease obligations | (4) | 0 |
Repurchases of stock | 0 | |
Cash settlement of common stock repurchase contracts | 0 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (38) | |
Share-based plan proceeds, net | 0 | |
Borrowings under program financing line of credit | 0 | |
Distributions to redeemable noncontrolling interests | 0 | |
Share-based plan proceeds, net | 0 | |
Inter-company contributions and other financing activities, net | (236) | 0 |
Cash provided by (used in) financing activities | (278) | 0 |
Effect of exchange rate changes on cash and cash equivalents | (5) | 0 |
Net change in cash and cash equivalents | 74 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 74 | 0 |
Discovery and Subsidiaries | ||
Operating Activities | ||
Cash provided by (used in) operating activities | 716 | 443 |
Investing Activities | ||
Business acquisitions, net of cash acquired | (8,565) | |
Payments for investments | (48) | (270) |
Proceeds from disposition, net of cash disposed | 107 | 29 |
Purchases of property and equipment | (82) | (78) |
Distributions from equity method investees | 18 | |
Proceeds from derivative instruments, net | 1 | |
Proceeds from derivative instruments, net | 5 | |
Other investing activities, net | 4 | 3 |
Cash used in investing activities | (8,583) | (293) |
Financing Activities | ||
Commercial paper borrowings, net | 579 | 25 |
Borrowings under revolving credit facility | 350 | |
Principal repayments of revolving credit facility | (50) | (200) |
Borrowings under term loan facilities | 2,000 | |
Principal (repayments) borrowings of term loans | (1,500) | |
Borrowings from debt, net of discount and including premiums | 659 | |
Principal repayments of debt, including discount payment and premiums to par value | (650) | |
Principal repayments of capital lease obligations | (25) | (19) |
Repurchases of stock | (501) | |
Cash settlement of common stock repurchase contracts | 58 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (59) | |
Share-based plan proceeds, net | 26 | |
Borrowings under program financing line of credit | 23 | |
Distributions to redeemable noncontrolling interests | 20 | |
Share-based plan proceeds, net | 11 | |
Inter-company contributions and other financing activities, net | (17) | (8) |
Cash provided by (used in) financing activities | 977 | (295) |
Effect of exchange rate changes on cash and cash equivalents | (27) | 51 |
Net change in cash and cash equivalents | (6,917) | (94) |
Cash and cash equivalents, beginning of period | 7,309 | 300 |
Cash and cash equivalents, end of period | $ 392 | $ 206 |