Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 19, 2019 | Jun. 30, 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 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 12 | ||
Entity Shell Company | false | ||
Series A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 157,023,114 | ||
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) | 360,244,568 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 986 | $ 7,309 |
Receivables, net | 2,620 | 1,838 |
Content rights, net | 313 | 410 |
Prepaid expenses and other current assets | 312 | 434 |
Total current assets | 4,231 | 9,991 |
Noncurrent content rights, net | 3,069 | 2,213 |
Property and equipment, net | 800 | 597 |
Goodwill | 13,006 | 7,073 |
Intangible assets, net | 9,674 | 1,770 |
Equity method investments, including note receivable (See Note 4) | 935 | 335 |
Other noncurrent assets | 835 | 576 |
Total assets | 32,550 | 22,555 |
Current liabilities: | ||
Accounts payable | 325 | 277 |
Accrued liabilities | 1,563 | 1,309 |
Deferred revenues | 249 | 255 |
Current portion of debt | 1,860 | 30 |
Total current liabilities | 3,997 | 1,871 |
Noncurrent portion of debt | 15,185 | 14,755 |
Deferred income taxes | 1,811 | 319 |
Other noncurrent liabilities | 1,040 | 587 |
Total liabilities | 22,033 | 17,532 |
Commitments and contingencies (See Note 22) | ||
Redeemable noncontrolling interests | 415 | 413 |
Discovery, Inc. stockholders’ equity: | ||
Additional paid-in capital | 10,647 | 7,295 |
Treasury stock, at cost: 167 shares | (6,737) | (6,737) |
Retained earnings | 5,254 | 4,632 |
Accumulated other comprehensive loss | (785) | (585) |
Total Discovery, Inc. stockholders’ equity | 8,386 | 4,610 |
Noncontrolling interests | 1,716 | 0 |
Total equity | 10,102 | 4,610 |
Total liabilities and equity | 32,550 | 22,555 |
Series A-1 Convertible Preferred Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Convertible preferred stock | 0 | 0 |
Series C-1 Convertible Preferred Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Convertible preferred stock | 0 | 0 |
Series A Common Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Common stock | 2 | 1 |
Treasury stock, at cost: 167 shares | (171) | |
Series B Common Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Common stock | 0 | 0 |
Series C Common Stock | ||
Discovery, Inc. stockholders’ equity: | ||
Common stock | 5 | $ 4 |
Treasury stock, at cost: 167 shares | $ (6,600) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Treasury stock (in shares) | 167,000,000 | 167,000,000 |
Series A-1 Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 8,000,000 | 8,000,000 |
Preferred stock issued (in shares) | 8,000,000 | 8,000,000 |
Preferred stock outstanding (in shares) | 8,000,000 | 8,000,000 |
Series C-1 Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 6,000,000 | 6,000,000 |
Preferred stock issued (in shares) | 6,000,000 | 6,000,000 |
Preferred stock outstanding (in shares) | 6,000,000 | 6,000,000 |
Series A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 1,700,000,000 | 1,700,000,000 |
Common stock issued (in shares) | 160,000,000 | 157,000,000 |
Common stock outstanding (in shares) | 157,000,000 | 154,000,000 |
Treasury stock (in shares) | 3,000,000 | |
Series B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 7,000,000 | 7,000,000 |
Common stock outstanding (in shares) | 7,000,000 | 7,000,000 |
Series C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 524,000,000 | 383,000,000 |
Common stock outstanding (in shares) | 360,000,000 | 219,000,000 |
Treasury stock (in shares) | 164,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Revenues | $ 10,553 | $ 6,873 | $ 6,497 |
Costs and expenses: | |||
Costs of revenues, excluding depreciation and amortization | 3,935 | 2,656 | 2,432 |
Selling, general and administrative | 2,620 | 1,768 | 1,690 |
Impairment of goodwill | 0 | 1,327 | 0 |
Depreciation and amortization | 1,398 | 330 | 322 |
Restructuring and other charges | 750 | 75 | 58 |
(Gain) loss on disposition | (84) | 4 | (63) |
Total costs and expenses | 8,619 | 6,160 | 4,439 |
Operating income | 1,934 | 713 | 2,058 |
Interest expense, net | (729) | (475) | (353) |
Loss on extinguishment of debt | 0 | (54) | 0 |
Loss from equity investees, net | (63) | (211) | (38) |
Other (expense) income, net | (120) | (110) | 4 |
Income (loss) before income taxes | 1,022 | (137) | 1,671 |
Income tax expense | (341) | (176) | (453) |
Net income (loss) | 681 | (313) | 1,218 |
Net income attributable to noncontrolling interests | (67) | 0 | (1) |
Net income attributable to redeemable noncontrolling interests | (20) | (24) | (23) |
Net income (loss) available to Discovery, Inc. | $ 594 | $ (337) | $ 1,194 |
Series A, B and C Common Stock | |||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | |||
Basic (in dollars per share) | $ 0.86 | $ (0.59) | $ 1.97 |
Diluted (in dollars per share) | $ 0.86 | $ (0.59) | $ 1.96 |
Weighted average shares outstanding: | |||
Basic (in shares) | 498 | 384 | 401 |
Diluted (in shares) | 688 | 576 | 610 |
Distribution | |||
Revenues: | |||
Revenues | $ 4,538 | $ 3,474 | $ 3,213 |
Advertising | |||
Revenues: | |||
Revenues | 5,514 | 3,073 | 2,970 |
Other | |||
Revenues: | |||
Revenues | $ 501 | $ 326 | $ 314 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | $ 299 | $ 135 | $ 244 | $ 3 | $ (1,137) | $ 223 | $ 380 | $ 221 | $ 681 | $ (313) | $ 1,218 |
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | (189) | 183 | (191) | ||||||||
Available-for-sale securities | 0 | 15 | 38 | ||||||||
Pension plan and SERP | 3 | 0 | 0 | ||||||||
Derivatives | 12 | (20) | 24 | ||||||||
Comprehensive income (loss) | 507 | (135) | 1,089 | ||||||||
Comprehensive income attributable to noncontrolling interests | (67) | 0 | (1) | ||||||||
Comprehensive income attributable to redeemable noncontrolling interests | (20) | (25) | (23) | ||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | $ 420 | $ (160) | $ 1,065 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net income (loss) | $ 681 | $ (313) | $ 1,218 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Share-based compensation expense | 80 | 39 | 69 |
Depreciation and amortization | 1,398 | 330 | 322 |
Content rights amortization and impairment | 3,288 | 1,910 | 1,773 |
Impairment of goodwill | 0 | 1,327 | 0 |
(Gain) loss on disposition | (84) | 4 | (63) |
Remeasurement gain on previously held equity interests | 0 | (34) | 0 |
Equity in earnings and distributions from equity method investee companies | 138 | 223 | 44 |
Deferred income taxes | (131) | (199) | (27) |
Loss on extinguishment of debt | 0 | 54 | 0 |
Realized loss from derivative instruments, net | 0 | 98 | 3 |
Other-than-temporary impairment of AFS investments | 0 | 0 | 62 |
Other, net | 141 | 85 | 50 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | |||
Receivables, net | (84) | (258) | (25) |
Content rights and payables, net | (2,883) | (1,947) | (1,904) |
Accounts payable and accrued liabilities | (74) | 265 | (10) |
Prepaid income taxes and income taxes receivable | 57 | 20 | (31) |
Foreign currency and other, net | 49 | 25 | (101) |
Cash provided by operating activities | 2,576 | 1,629 | 1,380 |
Investing Activities | |||
Business acquisitions, net of cash acquired | (8,565) | (60) | 0 |
Payments for investments, net | (61) | (444) | (272) |
Proceeds from dispositions, net of cash disposed | 107 | 29 | 19 |
Proceeds from sale of assets | 68 | 0 | 0 |
Purchases of property and equipment | (147) | (135) | (88) |
Distributions from equity method investees | 1 | 77 | 87 |
Payments for derivative instruments, net | (2) | (101) | 0 |
Other investing activities, net | 6 | 1 | (2) |
Cash used in investing activities | (8,593) | (633) | (256) |
Financing Activities | |||
Commercial paper repayments, net | (5) | (48) | (45) |
Borrowings under revolving credit facility | 0 | 350 | 613 |
Principal repayments of revolving credit facility | (200) | (475) | (835) |
Borrowings under term loan facilities | 2,000 | 0 | 0 |
Principal repayments of term loans | (2,000) | 0 | 0 |
Borrowings from debt, net of discount and including premiums | 0 | 7,488 | 498 |
Principal repayments of debt, including discount payment and premiums to par value | (16) | (650) | 0 |
Payments for bridge financing commitment fees | 0 | (40) | 0 |
Principal repayments of capital lease obligations | (50) | (33) | (28) |
Repurchases of stock | 0 | (603) | (1,374) |
Cash settlement (prepayments) of common stock repurchase contracts | 58 | (57) | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (76) | (30) | (22) |
Share-based plan proceeds, net | 54 | 16 | 39 |
Borrowings under program financing line of credit | 22 | 0 | 0 |
Hedge of borrowings from debt instruments | 0 | 0 | 40 |
Other financing activities, net | (12) | (82) | (13) |
Cash (used in) provided by financing activities | (283) | 5,951 | (1,184) |
Effect of exchange rate changes on cash and cash equivalents | (23) | 62 | (30) |
Net change in cash and cash equivalents | (6,323) | 7,009 | (90) |
Cash and cash equivalents, beginning of period | 7,309 | 300 | 390 |
Cash and cash equivalents, end of period | $ 986 | $ 7,309 | $ 300 |
Consolidated Statements of Equi
Consolidated Statements of Equity - 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, 2015 | 109 | 536 | |||||||
Beginning balance at Dec. 31, 2015 | $ 5,451 | $ 2 | $ 5 | $ 7,021 | $ (5,461) | $ 4,517 | $ (633) | $ 5,451 | $ 0 |
Net income (loss) available to Discovery, Inc. and attributable to noncontrolling interests | 1,195 | 1,194 | 0 | 1,194 | 1 | ||||
Other comprehensive income (loss) | (129) | (129) | (129) | ||||||
Repurchases of stock (in shares) | (9) | ||||||||
Repurchases of stock | (1,374) | (895) | (479) | (1,374) | |||||
Prepayments for common stock repurchase contracts | (57) | (57) | (57) | ||||||
Share-based compensation | 35 | 35 | 35 | ||||||
Excess tax benefits from share-based compensation | 7 | 7 | 7 | ||||||
Tax settlements associated with share-based compensation | (11) | $ 0 | (11) | (11) | |||||
Issuance of stock in connection with share-based plans (in shares) | 5 | ||||||||
Issuance of stock in connection with share-based plans | 51 | $ 0 | 51 | 0 | 51 | ||||
Cash distributions and dividends paid to noncontrolling interests | (1) | (1) | |||||||
Share conversion (in shares) | (1) | ||||||||
Share conversion (in shares) | 2 | ||||||||
Share conversion | 0 | ||||||||
Ending balance (in shares) at Dec. 31, 2016 | 99 | 543 | |||||||
Ending balance at Dec. 31, 2016 | 5,167 | $ 2 | $ 5 | 7,046 | (6,356) | 5,232 | (762) | 5,167 | 0 |
Cumulative effect of accounting changes | 0 | 4 | 0 | (4) | 0 | 0 | |||
Net income (loss) available to Discovery, Inc. and attributable to noncontrolling interests | (337) | (337) | 0 | (337) | 0 | ||||
Other comprehensive income (loss) | 177 | 177 | 177 | ||||||
Preferred stock modification (in shares) | (82) | ||||||||
Preferred stock modification | 35 | $ (2) | 37 | 35 | |||||
Repurchases of stock (in shares) | (3) | ||||||||
Repurchases of stock | (603) | (381) | (222) | (603) | |||||
Excess of fair value received over book value of equity contributed to redeemable noncontrolling interest in Velocity | 57 | 57 | 57 | ||||||
Cash settlement of common stock repurchase contracts | 58 | 58 | 58 | ||||||
Share-based compensation | 44 | 44 | 44 | ||||||
Tax settlements associated with share-based compensation | (30) | $ (1) | (30) | (30) | |||||
Issuance of stock in connection with share-based plans (in shares) | 5 | ||||||||
Issuance of stock in connection with share-based plans | 80 | $ 0 | 79 | 1 | 80 | ||||
Redeemable noncontrolling interest adjustments to redemption value | (38) | (38) | (38) | ||||||
Ending balance (in shares) at Dec. 31, 2017 | 14 | 547 | |||||||
Ending balance at Dec. 31, 2017 | 4,610 | $ 0 | $ 5 | 7,295 | (6,737) | 4,632 | (585) | 4,610 | 0 |
Cumulative effect of accounting changes | 7 | 0 | 0 | 33 | (26) | 7 | |||
Net income (loss) available to Discovery, Inc. and attributable to noncontrolling interests | 661 | 594 | 0 | 594 | 67 | ||||
Other comprehensive income (loss) | (174) | (174) | (174) | ||||||
Share-based compensation | 82 | 82 | 82 | ||||||
Tax settlements associated with share-based compensation | (18) | $ 0 | (18) | (18) | |||||
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 | ||||
Issuance of stock in connection with share-based plans (in shares) | 5 | ||||||||
Issuance of stock in connection with share-based plans | 72 | $ 1 | 71 | 0 | 72 | ||||
Redeemable noncontrolling interest adjustments to redemption value | (5) | (5) | (5) | ||||||
Cash distributions and dividends paid to noncontrolling interests | (51) | (51) | |||||||
Ending balance (in shares) at Dec. 31, 2018 | 14 | 691 | |||||||
Ending balance at Dec. 31, 2018 | $ 10,102 | $ 0 | $ 7 | $ 10,647 | $ (6,737) | $ 5,254 | $ (785) | $ 8,386 | $ 1,716 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Discovery, Inc. (“Discovery”, the “Company”, "we", "us" or "our") 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 a production studio. As further discussed in Note 3, 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 education business that was sold on April 30, 2018. (See Note 3.) Financial information for Discovery’s reportable segments is discussed in Note 23. 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 4.) Inter-company accounts and transactions between consolidated entities have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting and Reporting Pronouncements Adopted Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, which includes significant amendments that 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 early adopted the pronouncement on July 1, 2018. As a result, the Company changed the method by which it assesses effectiveness for net investment hedges from the forward-method to the spot-method. The Company believes the spot method better matches the spot rate changes of the net investment. Previous net losses of $87 million incurred under the forward method related to net investment hedges will remain in other comprehensive loss under the currency translation adjustments component and will be reclassified to earnings when the net investment is sold or liquidated. The adoption of ASU 2017-12 did not result in a material impact to our consolidated results of operations; however, the Company has expanded its disclosures of its derivative activities in Note 10. Recognition and Measurement of Financial Instruments On January 1, 2018, the Company adopted ASU 2016-01 and ASU 2018-03, which enhance the reporting model for financial instruments. The 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 4 and Note 12.) • Upon adoption of ASU 2016-01, the Lionsgate Collar, as defined in Note 4, no longer receives the hedge accounting designation. There is no change to the manner in which movements in fair value of these instruments are reflected in the financial statements, as gains and losses will continue to be recorded as a component of other (expense) income, net on the consolidated statements of operations. (See Note 10.) • 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) income, net. (See Note 4 and Note 5.) 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 ("Topic 606"), which updates numerous requirements in U.S. GAAP, eliminates industry-specific guidance, and provides companies with a single 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 by adding ASC Subtopic 340-40, Other Assets and Deferred Costs: Contracts with Customers, and requiring 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 Topic 606 using the modified retrospective method applied to contracts 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. Under Topic 605, revenue is recognized when persuasive evidence of a sales arrangement exists, services are rendered or delivery occurs, the sales price is fixed or determinable and collectability is reasonably assured. 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. 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 the Education Business, which was disposed of as of April 30, 2018. (See Note 3.) For the year ended December 31, 2018 , the total amortization of capitalized sales commissions recorded as a component of cost of revenues was immaterial. The impact to revenue and costs of revenue as a result of applying Topic 606 was immaterial for the year ended December 31, 2018 . (See Note 14.) Income Taxes In October 2016, the FASB issued ASU 2016-16, which 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 In January 2017, the FASB issued ASU 2017-01, which 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. The Company adopted the new standard effective January 1, 2018, and there was no material impact on the consolidated financial statements upon adoption. Compensation - Retirement Benefits In March 2017, the FASB issued ASU 2017-07, 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 nonqualified 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 16.) Accounting and Reporting Pronouncements Not Yet Adopted Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, 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 the consolidated financial statements. Goodwill In January 2017, the FASB issued ASU 2017-04, which 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. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-03, which changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and that requires entities to use a new, forward-looking “expected loss” model that is expected to generally result in the earlier recognition of allowances for losses. The guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those years, but early adoption is permitted. The Company is evaluating the effect that the pronouncement will have on the Company's consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, which will require lessees to recognize almost all of their leases on the balance sheet by recording a right-of-use asset and liability. The guidance also requires improved disclosures to help users of the financial statements better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is 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 the effective date without applying the provisions of the new guidance to comparative periods presented. During the year ended December 31, 2018 , the Company determined a number of adoption elections. The Company will elect to apply the guidance at the effective date without recasting the comparative periods presented. Additionally, the Company will elect to apply practical expedients that will allow it to not reassess 1) whether any expired or existing contracts previously assessed as not containing leases are, or contain, leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. The Company will also elect to not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component will be accounted for as a single lease component. The Company will not elect to apply the practical expedient to use hindsight in determining the lease term and in assessing the right-of-use assets for impairment. Additionally, the Company will not elect to apply the short-term lease scope exemption. The Company continues to evaluate the impact that the pronouncement will have on the Company's consolidated financial statements. It is expected that assets and liabilities will increase materially when operating leases are recorded on the consolidated balance sheets under the new standard. The Company's existing operating lease obligations are included in Note 22. The pattern of expense recognition within the consolidated statements of operations is not expected to change significantly. The adoption is not expected to have an impact on the Company's ability to meet its financial covenants. Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“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 evaluations could change. These estimates are sometimes complex, sensitive to changes in assumptions and require fair value determinations using Level 3 fair value measurements. Actual results may differ materially from those estimates. 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. Consolidation The Company has ownership and other interests in various entities, including corporations, partnerships, and limited liability companies. For each such entity, 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 initially determines whether the entity is a VIE and, if so, whether it is the primary beneficiary of the VIE. An entity is generally a VIE if it meets any of the following criteria: (i) the entity has insufficient equity to finance its activities without additional subordinated financial support from other parties, (ii) the equity investors cannot make significant decisions about the entity’s operations, or (iii) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity or receive the expected returns of the entity and substantially all of the entity’s activities involve or are conducted on behalf of the investor with disproportionately few voting rights. The Company consolidates VIEs for which it is the primary beneficiary, regardless of its ownership or voting interests. The primary beneficiary is the party involved with the VIE that (i) has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Upon inception of a variable interest or the occurrence of a reconsideration event, the Company makes judgments in determining whether entities in which it invests are VIEs. If so, the Company makes judgments to determine whether it is the primary beneficiary and is thus required to consolidate the entity. If it is concluded that an entity is not a VIE, then the Company considers its proportional voting interests in the entity. The Company consolidates majority-owned subsidiaries in which a controlling financial interest is maintained. A controlling financial interest is determined by majority ownership and the absence of significant third-party participating rights. Ownership interests in entities for which the Company has significant influence that are not consolidated under the Company’s consolidation policy are accounted for as equity method investments. Related party transactions between the Company and its equity method investees have not been eliminated. (See Note 21.) Investments The Company holds investments in equity method investees and equity investments with and without readily determinable fair value. Investments in equity method investees are those for which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary. Significant influence typically exists if the Company has a 20% to 50% ownership interest in the venture unless persuasive evidence to the contrary exists. Under this method of accounting, the Company typically records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances. For the Company's equity method investments in renewable energy limited liability companies where the capital structure of the equity investment results in different liquidation rights and priorities than what is reflected by the underlying percentage ownership interests, the Company's proportionate share of net earnings is accounted for using the Hypothetical Liquidation at Book Value ("HLBV") methodology available under the equity method of accounting. When applying HLBV, the Company determines the amount that would be received if the investment were to liquidate all of its assets and distribute the resulting cash to the investors based on contractually defined liquidation priorities. The change in the Company's claim on the investee's book value in accordance with GAAP at the beginning and the end of the reporting period, after adjusting for any contributions or distributions, is the Company's share of the earnings or losses for the period. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. (See "Asset Impairment Analysis" below.) Equity investments without readily determinable fair value include ownership rights that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence and these investments do not have readily determinable fair values. Equity investments without readily determinable fair value are recorded at cost, less any impairment, and adjusted for subsequent observable price changes as of the date that an observable transaction takes place. Investments in entities or other securities in which the Company has no control or significant influence, is not the primary beneficiary, and have a readily determinable fair value are recorded at fair value based on quoted market prices and are classified as equity securities or equity investments with readily determinable fair value. For equity securities with readily determinable fair value, realized gains and losses are recorded in other (expense) income, net. (See Note 4.) Foreign Currency The reporting currency of the Company is the U.S. dollar. The functional currency of most of the Company’s international subsidiaries is the local currency. Assets and liabilities, including inter-company balances for which settlement is anticipated in the foreseeable future, denominated in foreign currencies are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded in accumulated other comprehensive income. Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the consolidated balance sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses are included in other (expense) income, net , and totaled a loss of $ 93 million , a loss of $ 83 million , and a gain of $ 75 million for 2018 , 2017 and 2016 , respectively. Cash flows from the Company's operations in foreign countries are generally translated at the weighted average rate for the applicable period in the consolidated statements of cash flows. The impacts of material transactions are recorded at the applicable spot rates as of the transaction date in the consolidated statements of operations and cash flows. The effects of exchange rates on cash balances held in foreign currencies are separately reported in the Company's consolidated statements of cash flows. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of 90 days or less. Receivables Receivables include amounts billed and currently due from customers and are presented net of an estimate for uncollectible accounts. The Company evaluates outstanding receivables to assess collectability. In performing this evaluation, the Company analyzes market trends, economic conditions, the aging of receivables and customer specific risks. Using this information, the Company reserves an amount that it estimates may not be collected. The Company does not require collateral with respect to trade receivables. Content Rights Content rights principally consist of television series, specials, films and sporting events. Content aired on the Company’s television networks is sourced from a wide range of third-party producers, wholly-owned and equity method investee production studios and sports associations. Content is classified either as produced, coproduced or licensed. The Company owns most or all of the rights to produced content. The Company collaborates with third parties to finance and develop coproduced content, and it retains significant rights to exploit the programs. Licensed content is comprised of films or series that have been previously produced by third parties and the Company retains limited airing rights over a contractual term. Prepaid licensed content includes advance payments for rights to air sporting events that will take place in the future and advance payments for acquired films and television series. Costs of produced and coproduced content consist of development costs, acquired production costs, direct production costs, certain production overhead costs and participation costs. Costs incurred for produced and coproduced content are capitalized if the Company has previously generated revenues from similar content in established markets and the content will be used and revenues will be generated for a period of at least one year. The Company’s coproduction arrangements generally provide for the sharing of production costs. The Company records its costs but does not record the costs borne by the other party as the Company does not share any associated economics of exploitation. Program licenses typically have fixed terms and require payments during the term of the license. The cost of licensed content is capitalized when the license period for the programs has commenced and the programs are available for air or the Company has paid for the programs. The Company pays in advance of delivery for television series, specials, films and sports rights. Payments made in advance of when the right to air the content is received are recognized as in-production produced, coproduced content or prepaid licensed content. Content distribution, advertising, marketing, general and administrative costs are expensed as incurred. Content amortization expense for each period is recognized based on the revenue forecast model, which approximates the proportion that estimated distribution and advertising revenues for the current period represent in relation to the estimated remaining total lifetime revenues. Significant judgment is required to determine the useful lives of the Company’s content rights and the ultimate revenues to be derived from the exploitation of the individual content rights, which involves the use of significant estimates and assumptions with respect to the timing and frequency of forecasted future airings, the associated revenues to be derived from these airings, and revenues generated from service offerings other than traditional linear distribution. The Company annually, or on an as needed basis, prepares analyses to support its content amortization expense by network and by region. Critical assumptions used in determining content amortization include: (i) the grouping of content by network and or genre, (ii) the application of a quantitative revenue forecast model based on the adequacy of a network's historical data, (iii) determining the appropriate historical periods to utilize and the relative weighting of those historical periods in the revenue forecast model, (iv) assessing the accuracy of the Company's revenue forecasts and (v) incorporating secondary streams. The Company then considers the appropriate application of the quantitative assessment given forecasted content use, expected content investment and market trends. Content use and future revenues may differ from estimates based on changes in expectations related to market acceptance, network affiliate fee rates, advertising demand, the number of cable and satellite television subscribers receiving the Company’s networks, and program usage. Accordingly, the Company continually reviews revenue estimates and planned usage and revises its assumptions if necessary. As part of the Company's annual assessment in determining the film forecast model, the Company compares the calculated amortization rates to those that have been utilized during the year. If the calculated rates do not deviate materially from the applied amortization rates, no adjustment is recorded for the current year amortization expense. The Company allocates the cost of multi-year sports programming arrangements over the contract period to each event or season based on the estimated relative value of each event or season. The result of the revenue forecast model is either an accelerated method or a straight-line amortization method over the estimated useful lives of primarily three to four years for produced, coproduced and licensed content. Amortization of capitalized costs for produced and coproduced content begins when a program has been aired. Amortization of capitalized costs for licensed content commences when the license period begins and the program is available for use. Amortization of sports rights takes place when the content airs. Capitalized content costs are stated at the lower of cost less accumulated amortization or net realizable value. The Company periodically evaluates the net realizable value of content by considering expected future revenue generation. Estimates of future revenues consider historical airing patterns and future plans for airing content, including any changes in strategy. Given the significant estimates and judgments involved, actual demand or market conditions may be less favorable than those projected, requiring a write-down to net realizable value. Development costs for programs that the Company has determined will not be produced, are fully expensed in the period the determination is made. All produced and coproduced content is classified as long-term. The portion of the unamortized licensed content balance, including prepaid sports rights, that will be amortized within one year is classified as a current asset. (See Note 6.) Property and Equipment Property and equipment are stated at cost less accumulated depreciation and impairments. The cost of property and equipment acquired under capital lease arrangements represents the lesser of the present value of the minimum lease payments or the fair value of the leased asset as of the inception of the lease. The Company leases fixed assets and licenses software. Capitalized software costs are for internal use. Capitalization of software costs occurs during the application development stage. Software costs incurred during the preliminary project and post implementation stages are expensed as incurred. Repairs and maintenance expenditures that do not enhance the use or extend the life of property and equipment are expensed as incurred. Depreciation for most property and equipment is recognized using the straight-line method over the estimated useful lives of the assets, which is 15 to 39 years for buildings, three to five years for broadcast equipment, two to five years for capitalized software costs and three to five years for office equipment, furniture, fixtures and other property and equipment. Assets acquired under capital lease arrangements and leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the terms of the related leases, which is one to 15 years. Depreciation commences when property or equipment is ready for its intended use. Asset Impairment Analysis Goodwill and Indefinite-lived Intangible Assets Goodwill is allocated to the Company's reporting units, which are its operating segments or one level below its operating segments. The Company evaluates goodwill and other indefinite-lived intangible assets for impairment annually as of November 30 and earlier if an event or other circumstance indicates that we may not recover the carrying value of the asset. If the Company believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit or other indefinite-lived intangible asset is greater than its carrying amount, the quantitative impairment test is not required. The Company performs a quantitative impairment test every three years, irrespective of the outcome of the Company's qualitative assessment. 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, |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 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 become 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 $5.3 billion and $802 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 and assumed liabilities. 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 DCF and market value methods. The fair value of tradenames 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 adjustments for the year ended December 31, 2018 resulted from the receipt of additional financial projections associated with certain equity method investments, contingent liability estimates, deferred income tax adjustments, and true-ups for estimated working capital balances. These adjustments did not impact the Company's statements of operations. As of December 31, 2018, certain tax exposures are subject to further adjustment. The Company estimates the total remaining exposure relative to these matters to be approximately $110 million in the aggregate as of December 31, 2018. 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 (9 ) 412 Content rights 1,088 — 1,088 Property and equipment 315 — 315 Goodwill 6,003 118 6,121 Intangible assets 9,175 — 9,175 Equity method investments, including note receivable 870 (157 ) 713 Other noncurrent assets 111 3 114 Current liabilities assumed (494 ) (105 ) (599 ) Debt assumed (2,481 ) — (2,481 ) Deferred income taxes (1,695 ) 93 (1,602 ) Other noncurrent liabilities (383 ) 57 (326 ) 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 a controlling interest in the Oprah Winfrey Network ("OWN") from Harpo, Inc. ("Harpo"), increasing Discovery’s ownership stake from 49.50% to 73.75% . OWN is a pay-TV network and website that provides adult lifestyle and entertainment content that 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 December 31, 2018 , the carrying amounts of assets and liabilities of the consolidated VIE were $667 million and $235 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. Networks 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 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 reflected measurement period adjustments, in the period in which the adjustment occurred. The fair value of assets acquired and liabilities assumed, measurement period adjustments, as well as a reconciliation to cash consideration transferred is presented in the table below (in millions). Preliminary November 30, 2017 Measurement Period Adjustments Final November 30, 2017 Intangible assets $ 295 $ — $ 295 Content rights 176 — 176 Accounts receivable 84 — 84 Other assets 26 — 26 Other liabilities (230 ) 12 (218 ) Net assets acquired $ 351 $ 12 $ 363 Goodwill 136 (12 ) 124 Remeasurement gain on previously held equity interest (33 ) — (33 ) Carrying value of previously held equity interest (329 ) — (329 ) Redeemable noncontrolling interest (55 ) — (55 ) Cash consideration transferred $ 70 $ — $ 70 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. Harpo exercised the first of such remaining put rights on August 20, 2018. On November 6, 2018, the Company and Harpo entered into an amendment to the limited liability company agreement whereby Harpo agreed to withdraw its August 20, 2018 put notice and upon any succeeding redemption the put payment value will equal the fair value of Harpo's equity interest in OWN plus an incremental 9.337% per annum for the 2.5 year period between the July 1, 2018 put right date and the January 1, 2021 put right date. 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 11.) MotorTrend Group On September 25, 2017 , the Company contributed its linear cable network focused on cars and motor sports, Velocity, to a new joint venture MotorTrend 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 MotorTrend YouTube channel and the MotorTrend 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. Networks 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 11.) 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 movement and allocation of all acquisition-related costs incurred during the twelve months ended December 31, 2018 to the twelve months ended December 31, 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). The Company's 2017 OWN and MTG transactions were not material individually or in the aggregate, therefore no pro forma information is presented for 2016. Year Ended December 31, 2018 2017 Revenues $ 11,176 $ 10,790 Net income (loss) available to Discovery, Inc. 823 (329 ) Net income (loss) per share - basic 1.15 (0.46 ) Net income (loss) per share - diluted 1.15 (0.47 ) 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). Year Ended December 31, 2018 2017 Revenues: Distribution $ 961 $ 14 Advertising 2,377 25 Other 156 19 Total revenues $ 3,494 $ 58 Net income (loss) available to Discovery, Inc. $ 203 $ (1 ) 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 $2 million for the year ended December 31, 2018 . Discovery retained a 12% ownership interest in the Education Business, which is accounted for as an equity method investment. (See Note 4.) 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 year ended December 31, 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 was a loss of $4 million for the year ended December 31, 2017 . Raw and Betty were components of the studios operating segment reported with Education and Other. Group Nine Transaction On December 2, 2016 , the Company recorded a pre-tax gain of $50 million upon disposition of its digital network Seeker and production studio SourceFed, following its contribution of the businesses and $100 million in cash for the formation of a new joint venture, Group Nine Media, Inc. ("Group Nine Media"), on December 2, 2016 ("Group Nine Transaction"). Group Nine Media includes Thrillist Media Group, NowThis Media and TheDodo.com. As a result of the transaction, Discovery obtained a noncontrolling ownership interest in the preferred stock of Group Nine Media, which is accounted for as an equity investment without readily determinable fair value. As of December 31, 2018 , the Company owns a 42% minority interest in Group Nine Media on an outstanding shares basis with a carrying value of $212 million . (See Note 4.) The gain on contribution of the digital networks business included the disposition of $32 million in net assets, including $22 million of goodwill allocated to the transaction based on the relative fair values of the digital networks business disposed of and the portion of the U.S. Networks reporting unit that was retained. The Company determined that these disposals did not meet the definition of a discontinued operation because they did not represent a strategic shift that has a significant impact on the Company's operations and consolidated financial results. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | INVESTMENTS The Company’s investments consisted of the following (in millions). Category Balance Sheet Location December 31, 2018 December 31, 2017 Time deposits Cash and cash equivalents $ — $ 1,305 Equity securities: Money market funds Cash and cash equivalents 286 2,707 Mutual funds and company-owned life insurance contracts Prepaid and other current assets 28 182 Mutual funds and company-owned life insurance contracts Other noncurrent assets 188 — Equity method investments: Equity investments Equity method investment 841 335 Note receivable Equity method investment 94 — Equity Investments: Common stock investments with readily determinable fair values Other noncurrent assets 77 164 Equity investments without readily determinable fair value Other noncurrent assets 379 295 Total investments $ 1,893 $ 4,988 Money Market Funds and Time Deposits During 2017 , the Company issued $6.8 billion in senior notes to fund the March 6, 2018 acquisition of Scripps Networks. (See Note 3 and Note 9.) A portion of the proceeds was invested in various short-term investments with original maturities of 90 days or less prior to the acquisition of Scripps Networks and was classified as cash and cash equivalents on the consolidated balance sheet. As of December 31, 2018 , the decrease in these funds is the result of funding the acquisition of Scripps Networks. Mutual Funds Equity securities include investments in mutual funds held in separate trusts, which are owned as part of the Company’s supplemental retirement plans. (See Note 5 and Note 16.) 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 December 31, 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 $570 million . The Company's maximum estimated exposure excludes the non-contractual future funding of VIEs. The aggregate carrying values of these VIE investments, including a note receivable of $94 million , were $528 million and $181 million as of December 31, 2018 and December 31, 2017 , respectively. The Company recognized its portion of VIE operating results with net losses and impairments of $52 million , net losses of $182 million and net earnings of $7 million for 2018 , 2017 and 2016 , respectively, in loss from equity investees, net on the consolidated statements of operations. 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, which is 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 December 31, 2018 , the Company’s investment in UKTV totaled $386 million , including a note receivable of $94 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 entity's operating and financial policies. The Company's investment in nC+ totaled $180 million as of December 31, 2018 . Renewable Energy Investments The Company invested $17 million , $322 million and $63 million in limited liability companies that sponsor renewable energy projects related to solar energy during the years ended December 31, 2018, December 31, 2017 and December 31, 2016 , respectively. The Company expects these investments to result in tax benefits that reduce the Company's tax liability, and increase cash flows from the operations. 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 Year Ended December 31, Renewable Energy Investments 2018 2017 2016 Loss on renewable energy investments Loss from equity investees, net $ (11 ) $ (251 ) $ (24 ) Tax benefit: Equity passive loss Income tax expense $ 2 $ 83 $ 9 Investment tax credits Income tax expense 12 211 17 Total tax benefit $ 14 $ 294 $ 26 The Company accounts for investment tax credits utilizing the flow through method. As of December 31, 2018 and December 31, 2017 , the carrying value of the Company's renewable energy investments was $89 million and $98 million , respectively. The Company has $4 million of future funding commitments for these investments as of December 31, 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 December 31, 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 impairment losses of $29 million for the year ended December 31, 2018 because the carrying amount of certain investments was not recoverable. The impairment losses are reflected as a component of loss from equity investees, net 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 3), 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 UKTV and nC+ 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 by $27 million during the period from March 6, 2018 to December 31, 2018 . Amortization that reduces the Company's equity in earnings of equity method investees for future periods is expected to be approximately $291 million . Significant Subsidiaries The table set forth below presents selected financial information for investments accounted for under the equity method. Because renewable energy projects discussed above are accounted for under the HLBV equity method of accounting, the Company's equity method losses do not directly correlate with the GAAP results of the investees presented below. The selected statement of operations information for each of the three years ended December 31, 2018 , 2017 , and 2016 and the selected balance sheet information as of December 31, 2018 and 2017 (in millions) is summarized in the table below. 2018 2017 2016 Selected Statement of Operations Information: Revenues $ 3,140 $ 1,780 $ 1,617 Cost of sales 1,973 1,100 998 Operating income 847 76 83 Pre-tax income (loss) from continuing operations before extraordinary items 180 16 (78 ) After-tax net loss 96 (27 ) (98 ) Net loss attributable to the entity 96 (27 ) (99 ) Selected Balance Sheet Information: Current assets $ 1,855 $ 1,002 Noncurrent assets 2,465 1,946 Current liabilities 1,398 701 Noncurrent liabilities 1,334 1,008 Redeemable preferred stock 438 476 Non-controlling interests 267 6 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) income, net, as the shares have a readily determinable fair value and the Company has the intent to retain the investment. 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 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). December 31, 2018 December 31, 2017 Cost $ 195 $ 195 Accumulated change in the value of: Equity securities recognized in other expense, net (88 ) (1 ) Unhedged equity securities recorded in other comprehensive income — 32 Reclassification of accumulated other comprehensive income to retained earnings 32 — Other-than-temporary impairment (62 ) (62 ) Carrying value $ 77 $ 164 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 income (loss) . 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) income, net . Upon adoption of ASU 2016-01, the Lionsgate Collar no longer receives the hedge accounting designation. Although there is a change in the hedging designation, all changes to the fair value of the Lionsgate Collar continue to be reflected in the financial statements as a component of other (expense) income, net on the consolidated statements of operations (See Note 2, Note 5 and Note 10). 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 income (loss) were recognized as an impairment charge that was included as a component of other (expense) income, net for the year ended December 31, 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 December 31, 2018 primarily include its 42% minority interest in Group Nine Media on an outstanding shares basis 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 a readily determinable fair value 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 performs its qualitative assessment quarterly and concluded that its other equity investments without readily determinable fair values had no indicators that a change in fair value had taken place as of December 31, 2018 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 table below presents assets and liabilities measured at fair value on a recurring basis (in millions). December 31, 2018 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Equity securities: Money market funds Cash and cash equivalents $ 286 $ — $ — $ 286 Mutual funds Prepaid expenses and other current assets 13 — — 13 Company-owned life insurance contracts Prepaid expenses and other current assets — 15 — 15 Mutual funds Other noncurrent assets 158 — — 158 Company-owned life insurance contracts Other noncurrent assets — 30 — 30 Equity investments with readily determinable fair value: Common stock Other noncurrent assets 77 — — 77 Derivatives: Cash flow hedges: Foreign exchange Prepaid expenses and other current assets — 13 — 13 Net investment hedges: Cross-currency swaps Other noncurrent assets — 41 — 41 Foreign exchange Other noncurrent assets — 1 — 1 No hedging designation: (a) Equity (Lionsgate Collar) Prepaid expenses and other current assets — 14 — 14 Equity (Lionsgate Collar) Other noncurrent assets — 27 — 27 Foreign exchange Other noncurrent assets — 11 — 11 Total $ 534 $ 152 $ — $ 686 Liabilities Deferred compensation plan Accrued liabilities $ 37 $ — $ — $ 37 Deferred compensation plan Other noncurrent liabilities 178 — — 178 Derivatives: Cash flow hedges: Foreign exchange Accrued liabilities — 3 — 3 Net investment hedges: Cross-currency swaps Accrued liabilities — 39 — 39 Cross-currency swaps Other noncurrent liabilities — 81 — 81 No hedging designation: Cross-currency swaps Accrued liabilities — 1 — 1 Total $ 215 $ 124 $ — $ 339 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 Equity 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 2 and Note 10.) 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 4.) The Company values cash and cash equivalents using quoted market prices. As of December 31, 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 equity 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 4.) 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 16.) 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 4.) As of January 1, 2018, the Company adopted ASU 2016-01, which eliminates the AFS classification. (See Note 2 and Note 4.) Company-owned life insurance contracts are recorded at their cash surrender value. (See Note 4 and 16.) Derivative financial instruments are comprised of foreign exchange, interest rate, credit and equity contracts. (See Note 10.) The fair value of Level 2 derivative financial instruments was determined using a market-based approach. In addition to the financial instruments listed in the tables above, the Company holds other financial instruments, including cash deposits, accounts receivable, accounts payable, commercial paper, borrowings under the revolving credit facility, capital leases and senior notes. The carrying values for such financial instruments, other than the senior notes, each approximated their fair values as of December 31, 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 $16.3 billion and $14.8 billion as of December 31, 2018 and December 31, 2017 , respectively. |
Content Rights
Content Rights | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Content Rights | CONTENT RIGHTS The following table presents the components of content rights (in millions). December 31, 2018 2017 Produced content rights: Completed $ 5,609 $ 4,355 In-production 612 442 Coproduced content rights: Completed 682 745 In-production 53 27 Licensed content rights: Acquired 1,007 1,070 Prepaid (a) 154 181 Content rights, at cost 8,117 6,820 Accumulated amortization (4,735 ) (4,197 ) Total content rights, net 3,382 2,623 Current portion (313 ) (410 ) Noncurrent portion $ 3,069 $ 2,213 a) Prepaid licensed content rights includes payments for rights to the Olympic Games of $65 million that are reflected as noncurrent content rights and $83 million that are reflected as current content rights on the consolidated balance sheet as of December 31, 2018 and 2017 , respectively. Content expense consisted of the following (in millions). For the year ended December 31, 2018 2017 2016 Content amortization $ 2,858 $ 1,878 $ 1,701 Other production charges 471 310 272 Content impairments 430 32 72 Total content expense $ 3,759 $ 2,220 $ 2,045 Content expense is generally a component of costs of revenue on the consolidated statements of operations. Content impairments of $405 million for the year ended December 31, 2018 , were due to the strategic programming changes following the acquisition of Scripps Networks and are reflected in restructuring and other charges as further described in Note 17. No content impairments were recorded as a component of restructuring and other during the year ended December 31, 2017 , and content impairments of $ 7 million were recorded as a component of restructuring and other charges for the year ended December 31, 2016 . As of December 31, 2018 , the Company estimates that approximately 96% of unamortized costs of content rights, excluding content in-production and prepaid licenses, will be amortized within the next three years. As of December 31, 2018 , the Company will amortize $ 1.5 billion of the above unamortized content rights, excluding content in-production and prepaid licenses, during the next twelve months. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in millions). December 31, 2018 2017 Land, buildings and leasehold improvements $ 365 $ 363 Broadcast equipment 730 728 Capitalized software costs 440 379 Office equipment, furniture, fixtures and other 458 431 Property and equipment, at cost 1,993 1,901 Accumulated depreciation (1,193 ) (1,304 ) Property and equipment, net $ 800 $ 597 Property and equipment includes assets acquired under capital lease arrangements, primarily satellite transponders classified as broadcast equipment, with gross carrying values of $369 million and $358 million as of December 31, 2018 and 2017 , respectively. The related accumulated amortization for capital lease assets was $181 million and $154 million as of December 31, 2018 and 2017 , respectively. Capitalized software costs are for internal use. The net book value of capitalized software costs was $136 million and $86 million as of December 31, 2018 and 2017 , respectively. The related accumulated amortization was $304 million and $293 million as of December 31, 2018 and 2017 , respectively. Depreciation expense for property and equipment, including amortization of capitalized software costs and capital lease assets, totaled $229 million , $150 million and $139 million for 2018 , 2017 and 2016 , respectively. In addition to the capitalized property and equipment included in the above table, the Company rents certain facilities and equipment under operating lease arrangements. Rental expense for operating leases totaled $205 million , $127 million and $122 million for 2018 , 2017 and 2016 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill The carrying value and changes in the carrying value of goodwill attributable to each business unit were as follows (in millions). U.S. Networks International Networks Education and Other Total December 31, 2016 $ 5,265 $ 2,708 $ 67 $ 8,040 Acquisitions (Note 3) 211 7 — 218 Dispositions (Note 3) — — (30 ) (30 ) Impairment of goodwill — (1,327 ) — (1,327 ) Foreign currency translation 2 167 3 172 December 31, 2017 5,478 1,555 40 7,073 Acquisitions (Note 3) 5,319 802 — 6,121 Dispositions (Note 3) — — (40 ) (40 ) Foreign currency translation and other adjustments $ (12 ) $ (136 ) $ — (148 ) December 31, 2018 $ 10,785 $ 2,221 $ — $ 13,006 The carrying amount of goodwill at the International Networks segment included accumulated impairments of $1.3 billion as of each of December 31, 2018 and December 31, 2017 . The carrying amount of goodwill at the U.S. Networks segment included accumulated impairments of $20 million as of December 31, 2018 and 2017 . Intangible Assets Finite-lived intangible assets consisted of the following (in millions, except years). Weighted Average Amortization Period (Years) December 31, 2018 December 31, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets subject to amortization: Trademarks 10 $ 1,669 $ (342 ) $ 1,327 $ 494 $ (224 ) $ 270 Customer relationships 10 9,455 (1,501 ) 7,954 2,026 (758 ) 1,268 Other 9 314 (85 ) 229 118 (50 ) 68 Total $ 11,438 $ (1,928 ) $ 9,510 $ 2,638 $ (1,032 ) $ 1,606 Indefinite-lived intangible assets not subject to amortization (in millions): December 31, 2018 2017 Trademarks $ 164 $ 164 Straight-line amortization expense for finite-lived intangible assets reflects the pattern in which the assets' economic benefits are consumed over their estimated useful lives. Amortization expense related to finite-lived intangible assets was $1.2 billion , $180 million and $183 million for 2018 , 2017 and 2016 , respectively. Amortization expense relating to intangible assets subject to amortization for each of the next five years and thereafter is estimated to be as follows (in millions). 2019 2020 2021 2022 2023 Thereafter Amortization expense $ 1,120 $ 1,065 $ 1,042 $ 1,015 $ 986 $ 4,282 The amount and timing of the estimated expenses in the above table may vary due to future acquisitions, dispositions, impairments, changes in estimated useful lives or changes in foreign currency exchange rates. Impairment Analysis As of November 30, 2018, the Company performed a qualitative goodwill impairment assessment for all reporting units and determined that it was more likely than not that the fair value of those reporting units exceeded their carrying values, except for its Asia-Pacific reporting unit. Based on the results of the qualitative assessment, the Company performed a quantitative step 1 impairment test (comparison of fair value to carrying value) for its Asia-Pacific reporting unit, which indicated that the estimated fair value exceeded its carrying value by approximately 10% and, therefore, no impairment was recorded. The fair value of the Asia-Pacific reporting unit was determined using DCF and market-based valuation models. Cash flows were determined based on Company estimates of future operating results and were discounted using an internal rate of return based on an assessment of the risk inherent in future cash flows of the respective reporting unit. The market-based valuation models utilized multiples of revenue and earnings before interest, taxes, depreciation and amortization. Both the DCF and market-based models resulted in substantially similar fair values. As of December 31, 2018, the carrying value of goodwill assigned to the Asia-Pacific reporting unit was $188 million . Management will continue to monitor this reporting unit for changes in the business environment that could impact recoverability. As of November 30, 2017, the Company performed a qualitative goodwill impairment assessment for all reporting units and determined that it was more likely than not that the fair value of those reporting units exceeded their carrying values, except for its DNI-Europe reporting unit. Based on the results of the qualitative assessment, the Company performed a quantitative step 1 impairment test for its European reporting unit as of November 30, 2017, using the same methodology as in 2016, noting potential impairment (approximately $100 million or 3% deficit). Given these results, the Company then applied the hypothetical purchase price analysis required by the step 2 test and recognized a pre-tax goodwill impairment charge of $1.3 billion as of November 30, 2017, for the European reporting unit. The impairment charge of $1.3 billion significantly exceeded the deficit of fair value to carrying value of approximately $100 million because of significant intangible assets that were not recognized on the Company's consolidated balance sheet (i.e., excluded from book carrying value) but were considered in the step 2 calculation on a fair value basis. After the impairment charge was recorded, the carrying value of remaining goodwill assigned to the European reporting unit was $1.1 billion and the net assets of the reporting unit were approximately $2.7 billion , which resulted in $1.2 billion headroom based on the estimated fair value of $3.9 billion . The determination of fair value of the Company's DNI-Europe reporting unit represented a Level 3 fair value measurement in the fair value hierarchy due to its use of internal projections and unobservable measurement inputs. Changes in significant judgments and estimates could significantly impact the concluded fair value of the reporting unit or the valuation of intangible assets. The goodwill impairment charge did not have an impact on the calculation of the Company's financial covenants under the Company's debt arrangements. As of November 30, 2016 , the Company performed a quantitative goodwill impairment assessment for all reporting units consistent with the Company's accounting policy. The estimated fair value of each reporting unit exceeded its carrying value and, therefore, no impairment was recorded. The fair values of the reporting units were determined using DCF and market-based valuation models. Cash flows were determined based on Company estimates of future operating results and discounted using an internal rate of return based on an assessment of the risk inherent in future cash flows of the respective reporting unit. The market-based valuation models utilized multiples of earnings before interest, taxes, depreciation and amortization. Both the DCF and market-based models resulted in substantially similar fair values. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The table below presents the components of outstanding debt (in millions). December 31, 2018 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 344 358 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 1,185 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 507 538 3.900% Senior notes, semi-annual interest, due November 2024 497 — 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 688 717 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 Revolving credit facility 225 425 Program financing line of credit 22 — Capital lease obligations 252 225 Total debt 17,170 14,913 Unamortized discount, premium and debt issuance costs, net (125 ) (128 ) Debt, net of unamortized discount, premium and debt issuance costs 17,045 14,785 Current portion of debt (1,860 ) (30 ) Noncurrent portion of debt $ 15,185 $ 14,755 Senior Notes On February 19, 2019, Discovery Communications, LLC (“DCL”), a wholly owned subsidiary of Discovery, Inc., issued a notice for the redemption in full of all $411 million aggregate principal amount outstanding of its 5.625% senior notes due August 2019 in accordance with the terms of the indenture governing the notes. The notes will be redeemed on March 21, 2019 (the “Redemption Date”), at a redemption price with respect to each note equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semi-annual basis at a comparable treasury rate plus 30 basis points, plus accrued interest thereon to the Redemption Date. 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 3.) The fair value adjustment resulted in an opening balance sheet carrying value that was $19 million less than the face amount of the senior notes. As of December 31, 2018, fair value adjustments of $4 million were amortized to interest expense. On April 3, 2018 , pursuant to an 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. 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. 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 , DCL 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. The proceeds received by DCL from the USD Notes and the Sterling Notes were net of an $11 million issuance discount and $57 million of debt issuance costs. The net proceeds from the issuance of these senior notes were used to finance a portion of the Scripps Networks acquisition. (See Note 3.) On March 13, 2017 , DCL issued $450 million principal amount of 3.800% senior notes due March 13, 2024 (the "2017 USD Notes") and an additional $200 million principal amount of its existing 4.900% 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 December 31, 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 25.) Term Loans On August 11, 2017 , DCL entered into a delayed draw and unsecured term loan credit facility (the "Term Loans"), with a three -year tranche and a five -year tranche, 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 were 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 December 31, 2018 , the Company had used cash from operations and borrowings under the commercial paper program to fully repay the Term Loans. Unsecured Bridge Loan Commitment On July 30, 2017 , the Company obtained a commitment letter from a financial institution for a $9.6 billion unsecured bridge term loan facility that could have been used to complete the Scripps Networks acquisition. No amounts were drawn under the bridge loan commitment and, following the execution of the Term Loans and the issuance of the USD Notes and the Sterling Notes on September 21, 2017 , the commitment was terminated. The Company incurred $40 million of debt issuance costs, which were fully amortized as a component of interest expense following the issuance of the USD Notes and Sterling Notes on September 21, 2017 . The associated cash payment was classified as a component of financing activity in the consolidated statements of cash flows. 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 extended the maturity date from February 4, 2021 to August 11, 2022 . The original agreement included 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 December 31, 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 December 31, 2018 , the Company had outstanding U.S. dollar-denominated borrowings under the revolving credit facility of $225 million at a weighted average interest rate of 3.820% . 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 2.690% . 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 foreign currencies under the credit facility, at an interest rate based on adjusted LIBOR, plus a margin. The current margins are 1.300% and 0.300% , 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 December 31, 2018 and 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 0.200% 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. The Company had no outstanding borrowings as of December 31, 2018 and 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 December 31, 2018 , the Company has an outstanding balance of $22 million . Long-term Debt Repayment Schedule The following table presents a summary of scheduled and estimated debt payments, excluding the revolving credit facility, commercial paper borrowings and capital lease obligations, for the next five years based on the amount of the Company's debt outstanding as of December 31, 2018 (in millions). 2019 2020 2021 2022 2023 Thereafter Long-term debt repayments $ 1,811 $ 1,388 $ 650 $ 1,244 $ 1,535 $ 10,043 Scheduled payments for capital lease obligations outstanding as of December 31, 2018 are disclosed in Note 22. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 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 exogenous events and 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: (i) a cash flow hedge, (ii) a net investment hedge, (iii) a fair value hedge, or (iv) an instrument with no hedging designation. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. Effective July 1, 2018, the Company early adopted ASU 2017-12. As a result, the Company changed the method by which it assesses effectiveness for net investment hedges from the forward-method to the spot-method. Management believes the spot method better matches the spot rate changes of the net investment. The entire change in the fair value of derivatives that qualify as net investment hedges is initially recorded in the currency translation adjustment component of other comprehensive income. While the change in fair value attributable to hedge effectiveness remains in accumulated other comprehensive income (loss) until the net investment is sold or liquidated, the change in fair value attributable to components excluded from the assessment of hedge effectiveness (e.g., forward points, cross currency basis, etc.) is reflected as a component of interest expense, net in the current period. Previous net losses of $87 million incurred under the forward method related to net investment hedges will remain in other comprehensive loss under the currency translation adjustments component and will be reclassified to earnings when the net investment is sold or liquidated. Additionally, as a result of ASU 2017-12, for foreign exchange forward contracts accounted for as cash flow hedges, the ineffective portion (if any) will not be separately recorded, as the entire change in the fair value of the forward contract will be recorded in other comprehensive income (loss) and reclassified into the statement 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. Cash Flow Hedges The Company designates foreign currency forward and option contracts as cash flow hedges to mitigate foreign currency risk arising from third-party revenue and inter-company licensing agreements. The Company also designates interest rate contracts used to hedge the pricing for certain senior notes as cash flow hedges. As of December 31, 2018 there were no interest rate contracts outstanding. During the year ended December 31, 2016 , the Company terminated and settled its outstanding interest rate cash flow hedges which resulted in a $40 million pretax gain. As the hedges were considered to be effective and the forecasted transactions were considered probable of occurring, the gain remained in accumulated other comprehensive loss and will be amortized as a reduction to interest expense over the term of the forecasted senior notes. The Company reclassified $17 million of the gains from accumulated other comprehensive loss to other (expense) income, net, in the Company's consolidated statements of operations, as the forecasted transaction was considered remote following the issuance of the USD Notes on September 21, 2017. Net Investment Hedges The Company designates cross-currency swaps and foreign currency forward contracts as hedges of net investments in foreign operations. Under ASU 2017-12, changes in the fair value of these instruments related to changes in spot rates are included in other comprehensive income (i.e., cumulative translation adjustment), while excluded components (i.e., anything other than the change in fair value due to changes in spot rates such as cross currency basis spread and forward points) are recorded as part of interest expense. On December 6, 2018, Discovery Networks SL (Spain) entered into a foreign currency forward contract with a notional value of 35.6 billion Chilean Pesos (equivalent to $53 million ) at execution date and with a due date of December 15, 2021. This was designated a net investment hedge, hedging against changes in the foreign currency-equivalent of the net investment in the foreign operation due to movements in exchange rates. As of December 31, 2018 the Company recorded an unrealized gain of $1 million as a cumulative translation adjustment under other comprehensive income (loss). On December 18, 2018, DNI Europe Holdings Limited entered into three fixed cross-currency swaps that were all designated as net investment hedges, which had a notional amount of €750 million (equivalent to $853 million ), and due dates in 2022 and 2027. Also on December 18, 2018, Discovery Luxembourg Holdings 1 S.A.R.L. entered into three fixed cross-currency swaps that were all designated as net investment hedges, which had an aggregate notional amount of £674 million (equivalent to $853 million ), and due dates in 2022 and 2027. The objective of these swaps is to protect the companies against the risk of changes in the foreign currency-equivalent of net investments in the foreign operations due to movements in foreign currency. As of December 31, 2018, the Company has recorded an unrealized loss of $10 million in connection with these contracts which has been recorded as a cumulative translation adjustment in other comprehensive income (loss). On September 21, 2017 , in conjunction with the Scripps Networks acquisition (see Note 3 and Note 9), DCL issued £400 million (equivalent to $543 million ) principal amount of 2.500% senior notes due 2024. The Sterling Notes were designated as net investment hedges, hedging against fluctuations in foreign currency exchange rates on a portion of the Company's investments in foreign subsidiaries. Prior to issuance of the Sterling Notes, the Company also entered into a series of foreign exchange contracts designated as net investment hedges on a portion of the Company's investments in foreign subsidiaries. These foreign exchange contracts were settled on the date of issuance of the Sterling Notes and resulted in a $12 million loss, which has been reflected as a component of currency translation adjustments on the Company's consolidated balance sheets as of December 31, 2017 . Fair Value Hedges Prior to the adoption of ASU 2016-01, the Company designated derivative instruments used to mitigate the risk of changes in the fair value of its AFS securities as fair value hedges. On November 12, 2015 , the Company entered into the Lionsgate Collar, designed to mitigate the risk of market fluctuations with respect to 50% of the Lionsgate shares held by the Company. (See Note 4.) The collar settles in three tranches starting in 2019 and ending in 2022. 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) income, net on the consolidated statements of operations. (See Note 2 and Note 5.) No Hedging Designation The Company may also enter into derivative financial instruments that do not qualify for hedge accounting and are not designated as hedges. These instruments are intended to mitigate economic exposures due to exogenous events and changes in foreign currency exchange rates and interest rates. On December 18, 2018, Discovery, Inc. entered into three foreign exchange forwards contracts with a notional value of $860 million . The objective of these contracts is to protect the Company against adverse revaluation impact on its Euro denominated debt. As of December 31, 2018, the Company has recorded a gain of $11 million as part of other (expense) income, net on the consolidated statements of operations. On October 17, 2018, DNI Global LLP and Discovery Communications Europe entered into four foreign exchange forwards contracts with a notional value of $300 million . The objective of these contracts was to protect the companies against volatility in the revaluation of foreign accounts receivable and accounts payable. These contracts were settled on November 30, 2018, and in connection with these transactions a total gain of $7 million was recorded as part of other (expense) income, net on the consolidated statements of operations. During the year ended December 31, 2017 , in conjunction with the Scripps Networks acquisition (see Note 3 and Note 9), the Company entered into $4 billion notional amount of interest rate contracts used to economically hedge a portion of the pricing of the 2017 USD Notes. These interest rate contracts were settled on September 21, 2017 and did not receive hedging designation. The Company recognized a $98 million loss in connection with these interest rate contracts, which has been reflected as a component of other (expense) income, net on the Company's consolidated statements of operations. Financial Statement Presentation The Company records all unsettled derivative contracts at their gross fair values on the consolidated balance sheets. (See Note 5.) 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. 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 December 31, 2018 and December 31, 2017 . December 31, 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 $ 267 $ 13 $ — $ 3 $ — $ 817 $ 7 $ — $ 12 $ — Net investment hedges: (a) Cross-currency swaps 3,387 — 41 39 81 1,708 — 3 13 98 Foreign exchange 52 — 1 — — 303 2 — 8 — Fair value hedges: Equity (Lionsgate collar) (b) — — — — — 97 — 13 — — No hedging designation: Foreign exchange 860 — 11 — — — — — — — Interest rate swaps 25 — — — — 25 — — — — Cross-currency swaps 64 — — 1 — 64 — — — 6 Equity (Lionsgate collar) (b) 97 14 27 — — — — — — — Credit contracts — — — — — 665 — — — 1 Total $ 27 $ 80 $ 43 $ 81 $ 9 $ 16 $ 33 $ 105 (a) Excludes £400 million of sterling notes ( $507 million equivalent at December 31, 2018 ) designated as a net investment hedge. (See Note 9.) (b) Upon adoption of ASU 2016-01 on January 1, 2018 , the Lionsgate Collar no longer receives hedge accounting designation. (See Note 2 and Note 5.) The following table presents the pretax impact of derivatives designated as cash flow hedges on income and other comprehensive income (loss) (in millions). Year Ended December 31, 2018 2017 2016 Gains (losses) recognized in accumulated other comprehensive loss (a) : Foreign exchange - derivative adjustments $ 34 $ (41 ) $ (1 ) Interest rate - derivative adjustments — — 40 Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - distribution revenue 9 (22 ) (25 ) Foreign exchange - advertising revenue (1 ) (3 ) (2 ) Foreign exchange - costs of revenues 11 — 27 Foreign exchange - other income, net — — 3 Interest rate - interest expense — (1 ) (3 ) Amount of gain recognized in income on derivative (amount excluded from effectiveness testing) (b) : Foreign exchange - other income, net — — 1 Interest rate - other income, net — 17 — Fair value excluded from effectiveness assessment: Foreign exchange - other income, net — — (5 ) (a) For periods prior to the Company's adoption of ASU 2017-12 on July 1, 2018, the amount of gain or (loss) represents only the effective portion of the hedging relationship. Effective with the adoption of ASU 2017-12, gains and losses resulting from the change in the fair value of the hedging relationship are recognized as components of accumulated other comprehensive loss. (b) For periods prior to the Company's adoption of ASU 2017-12 on July 1, 2018, amounts reflect the change in the fair value of the ineffective portion of the hedging relationship. No hedging instruments for which ineffectiveness was recognized directly into income in 2017 or in years prior were outstanding at the date of adoption of ASU 2017-12. If current fair values of designated cash flow hedges as of December 31, 2018 remained static over the next twelve months, the Company would reclassify $10 million of net deferred gains from accumulated other comprehensive loss into income in the next twelve months. Effective with the Company’s initial application of ASU 2017-12, net periodic interest settlements and accruals on the cross-currency swaps (which would include any cross-currency basis spread adjustment) are reported directly in interest expense, net. Changes in the fair value of the cross-currency swaps resulting from changes in the foreign exchange spot rate will continue to be recorded within the cumulative translation component of AOCI. The following table presents the pretax impact of derivatives designated as net investment hedges on other comprehensive income (loss) (in millions). Other than amounts excluded from effectiveness testing, there were no other gains (losses) reclassified from accumulated other comprehensive loss to income during the years ended December 31, 2018, 2017 and 2016 . Year Ended December 31, Amount of gain (loss) recognized in AOCI Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 2018 2017 2016 2018 2017 2016 Gains (losses) recognized in AOCI: Cross currency swaps $ 43 $ (96 ) $ 3 Interest expense, net $ 14 $ — $ — Foreign exchange contracts (a) — (18 ) — N/A — — — Sterling notes (foreign denominated debt) (a) 30 2 — N/A — — — Total $ 73 $ (112 ) $ 3 $ 14 $ — $ — (a) There are no existing components that are eligible for exclusion from effectiveness testing under ASU 2017-12. There were no forward exchange contracts outstanding at the date of adoption of ASU 2017-12. 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 year ended December 31, 2018 . There were no amounts of ineffectiveness recognized on fair value hedges for the year ended December 31, 2018 . As this hedge relationship was not active as of the date of adoption of ASU 2017-12, no transition adjustment was required. Year Ended December 31, 2017 2016 Gains (losses) on changes in fair value of hedged AFS $ 18 $ (17 ) (Losses) gains on changes in the intrinsic value of equity contracts (17 ) 16 Fair value of equity contracts excluded from effectiveness assessment 5 (6 ) Total in other income (expense), net $ 6 $ (7 ) The following table presents the pretax gains (losses) on derivatives not designated as hedges and recognized in other expense, net in the consolidated statements of operations (in millions). Year Ended December 31, 2018 2017 2016 Interest rate swaps $ — $ (98 ) $ — Cross-currency swaps 4 (6 ) — Foreign exchange 18 — (1 ) Credit contracts (1 ) (1 ) — Equity 29 — — Total in other income (expense), net $ 50 $ (105 ) $ (1 ) |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | REDEEMABLE NONCONTROLLING INTERESTS 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 income (loss) ; 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. (See Note 19.) The table below summarizes the Company's redeemable noncontrolling interests balances (in millions). December 31, 2018 2017 OWN $ 58 $ 56 MTG 121 120 Discovery Family 206 210 Discovery Japan 30 27 Total $ 415 $ 413 The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions). December 31, 2018 2017 2016 Beginning balance $ 413 $ 243 $ 241 Initial fair value of redeemable noncontrolling interests of acquired businesses — 137 — Cash distributions to redeemable noncontrolling interests (25 ) (30 ) (22 ) Comprehensive income (loss) adjustments: Net income attributable to redeemable noncontrolling interests 20 24 23 Other comprehensive earnings attributable to redeemable noncontrolling interests — 1 — Currency translation on redemption values 2 — 1 Retained earnings adjustments: Adjustments to redemption value 3 38 — Interest adjustment 2 — — Ending balance $ 415 $ 413 $ 243 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 Harpo's remaining noncontrolling interest at fair value during four 90-day windows beginning on July 1, 2018 and every two and a half years thereafter through January 1, 2026 . Harpo exercised the first of such remaining put rights on August 20, 2018 . On November 6, 2018 , the Company and Harpo entered into an amendment to the limited liability company agreement whereby Harpo agreed to withdraw its August 20, 2018 put notice and upon any succeeding redemption the put payment value will equal the fair value of Harpo's equity interest in OWN plus an incremental 9.337% per annum for the 2.5 year period between the July 1, 2018 put right date and the January 1, 2021 put right date. 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. 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. In connection with its non-controlling 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 for one year after December 31, 2021 . Upon the exercise of the put or call options, the price to be paid for the redeemable noncontrolling interest is 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 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. In connection with its non-controlling 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. NONCONTROLLING INTEREST In conjunction with the acquisition of Scripps Networks, the Company acquired a controlling interest in the TV Food Network 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 | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Equity | EQUITY Common Stock 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 3.) Common Stock The Company has three series of common stock authorized, issued and outstanding as of December 31, 2018 : Series A common stock, Series B common stock and Series C common stock. Holders of these three series of common stock have equal rights, powers and privileges, except as otherwise noted. Holders of Series A common stock are entitled to one vote per share and holders of Series B common stock are entitled to ten votes per share on all matters voted on by stockholders, except for directors to be elected by holders of the Company’s Series A-1 convertible preferred stock. Holders of Series C common stock are not entitled to any voting rights, except as required by Delaware law. Generally, holders of Series A common stock and Series B common stock and Series A-1 convertible preferred stock vote as one class, except for certain preferential rights afforded to holders of Series A-1 convertible preferred stock. Holders of Series A common stock, Series B common stock and Series C common stock will participate equally in cash dividends if declared by the Board of Directors, subject to preferential rights of outstanding preferred stock. Each share of Series B common stock is convertible, at the option of the holder, into one share of Series A common stock. Series A and Series C common stock are not convertible. Generally, distributions made in shares of Series A common stock, Series B common stock or Series C common stock will be made proportionally to all common stockholders. In the event of a reclassification, subdivision or combination of any series of common stock, the shares of the other series of common stock will be equally reclassified, subdivided or combined. In the event of a liquidation, dissolution, or winding up of Discovery, after payment of Discovery’s debts and liabilities and subject to preferential rights of outstanding preferred stock, holders of Series A common stock, Series B common stock and Series C common stock and holders of Series A-1 and Series C-1 convertible preferred stock will share equally in any assets available for distribution to holders of common stock. On February 13, 2014 , John C. Malone, a member of Discovery’s Board of Directors, entered into an agreement granting David Zaslav, the Company’s President and CEO, certain voting and purchase rights with respect to the approximately 6 million shares of the Company’s Series B common stock owned by Mr. Malone. The agreement gives Mr. Zaslav the right to vote the Series B shares if Mr. Malone is not otherwise voting or directing the vote of those shares. The agreement also provides that if Mr. Malone proposes to sell the Series B shares, Mr. Zaslav will have the first right to negotiate for the purchase of the shares. If that negotiation is not successful and Mr. Malone proposes to sell the Series B shares to a third party, Mr. Zaslav will have the exclusive right to match that offer. The rights granted under the agreement will remain in effect for as long as Mr. Zaslav is either employed as the principal executive officer of the Company or serving on its Board of Directors. Repurchase Programs Common Stock On August 10, 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, were made through open market transactions in 2017 and 2016 . There were no common stock repurchases during 2018 . As of December 31, 2018 and over the life of the program, the Company had repurchased 3 million and 164 million shares of Series A and Series C common stock, respectively, for the aggregate purchase price of $171 million and $6.6 billion , respectively. The table below presents a summary of common stock repurchases (in millions). Year Ended December 31, 2017 2016 Series C Common Stock: Shares repurchased 14.3 34.8 Purchase price (a) $ 381 $ 895 (a) The purchase price for Series C common stock in 2016 includes repurchases made pursuant to a common stock repurchase contract that was executed on August 22, 2016 and settled on December 2, 2016 at a cost of $71 million , resulting in the receipt of 2.8 million shares of Series C common stock at the then current market price equal to $75 million . See below for additional details. Convertible Preferred Stock and Preferred Stock Modification The Company has two series of preferred stock authorized, issued and outstanding as of December 31, 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. The following table summarizes the preferred shares issued at the time of the Exchange. Pre-Exchange Post-Exchange Shares Held Prior to the Amendment Converts into Common Stock Shares Issued Subsequent to the Amendment Converts into Common Stock Series A Preferred Stock 70,673,242 Common A 70,673,242 Series A-1 Preferred Stock 7,852,582 Common A 70,673,242 Common C 70,673,242 Series C-1 Preferred Stock 3,649,573 Common C 70,673,242 Series C Preferred Stock 24,874,370 Common C 49,748,740 Series C-1 Preferred Stock 2,569,020 Common C 49,748,740 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. Discovery valued the securities immediately prior to and immediately after the Exchange and determined that the Exchange increased the fair value of Advance/Newhouse’s preferred stock by $35 million from $3.340 billion to $3.375 billion , or 1.05% , which was not considered significant in the context of the total value of the Company's preferred stock. On the basis of the qualitative and quantitative factors noted above, Discovery does not believe the Exchange is considered significant and does not reflect an extinguishment of the previously issued preferred stock for accounting purposes. Accordingly, Discovery has accounted for the exchange of the previously issued preferred stock as a modification, which is measured as the increase in fair value of the preferred stock held by Advance/Newhouse, or $35 million . In connection with the Exchange Agreement, Advance/Newhouse also entered into the Advance/Newhouse Voting Agreement. The Advance/Newhouse Voting Agreement requires that Advance/Newhouse vote its shares of Discovery Series A-1 convertible preferred stock to approve the issuance of shares of Series C common stock in connection with the Scripps Networks acquisition as contemplated by the Merger Agreement. As the $35 million of incremental value was transferred to Advance/Newhouse in exchange for consent with respect to the Scripps Networks acquisition, the Company determined that the incremental amount should be expensed as acquisition transaction costs, which are reported as a component of selling, general and administrative expense. As of December 31, 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 convertible preferred stock issued to Advance/Newhouse in connection with the formation of Discovery, as converted to Series A-1 convertible preferred stock, 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 stock repurchase program. The repurchase transactions are recorded as a decrease of 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. During 2017 there were 2.3 million shares of Series C convertible preferred stock and 0.2 million shares of Series C-1 convertible preferred stock repurchased for $120 million and $102 million , respectively. There were no preferred stock repurchases during 2018 . Common Stock Repurchase Contracts 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. On December 2, 2016 , the Company settled an August 22, 2016 common stock repurchase contract with a net notional value of $71 million whose strike price of $25.86 was below the Series C common stock price at expiry. The Company elected to settle the contract through receipt of 2.8 million shares of Series C common stock at the then current market price equal to $75 million . The receipt of shares is reflected as a component of treasury stock and reclassified from additional paid-in capital at the prepaid cost of $71 million . Other Comprehensive (Loss) Income The table below presents the tax effects related to each component of other comprehensive (loss) income and reclassifications made into the consolidated statements of operations (in millions). Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 Pretax Tax Benefit (Expense) Net-of-tax Pretax Tax Benefit (Expense) Net-of-tax Pretax Tax Benefit (Expense) Net-of-tax Currency translation adjustments: Unrealized (losses) gains: Foreign currency $ (246 ) $ (6 ) $ (252 ) $ 280 $ 3 $ 283 $ (234 ) $ 41 $ (193 ) Net investment hedges 59 — 59 (112 ) — (112 ) 3 (1 ) 2 Reclassifications: Gain on disposition 4 — 4 12 — 12 — — — Total currency translation adjustments (183 ) (6 ) (189 ) 180 3 183 (231 ) 40 (191 ) AFS adjustments (a) : Unrealized gains (losses) - AFS securities — — — 36 (6 ) 30 (34 ) 6 (28 ) Reclassifications to other expense, net: Other-than-temporary-impairment AFS securities — — — — — — 62 (10 ) 52 Hedged portion of AFS securities — — — (18 ) 3 (15 ) 17 (3 ) 14 Total equity investment adjustments — — — 18 (3 ) 15 45 (7 ) 38 Derivative adjustments: Unrealized gains (losses) 34 (8 ) 26 (41 ) 15 (26 ) 39 (14 ) 25 Reclassifications: Distribution revenue (9 ) 2 (7 ) 22 (8 ) 14 25 (7 ) 18 Advertising revenue 1 — 1 3 (1 ) 2 2 — 2 Costs of revenues (11 ) 3 (8 ) — — — (27 ) 7 (20 ) Interest expense — — — 1 — 1 3 (1 ) 2 Other (expense) income, net — — — (17 ) 6 (11 ) (4 ) 1 (3 ) Total derivative adjustments 15 (3 ) 12 (32 ) 12 (20 ) 38 (14 ) 24 Pension Plan and SERP Liability: Unrealized gains 3 — 3 — — — — — — Total Pension Plan and SERP Liability adjustments 3 — 3 — — — — — — Other comprehensive (loss) income adjustments $ (165 ) $ (9 ) $ (174 ) $ 166 $ 12 $ 178 $ (148 ) $ 19 $ (129 ) Accumulated Other Comprehensive Loss The table below presents the changes in the components of accumulated other comprehensive loss, net of taxes (in millions). Currency Translation Adjustments AFS Adjustments (a) Derivative Adjustments Pension Plan and SERP Liability Accumulated Other Comprehensive Income (Loss) December 31, 2015 $ (606 ) $ (27 ) $ — $ — $ (633 ) Other comprehensive (loss) income before reclassifications (191 ) (28 ) 25 — (194 ) Reclassifications from accumulated other comprehensive loss to net income — 66 (1 ) — 65 Other comprehensive loss (191 ) 38 24 — (129 ) December 31, 2016 (797 ) 11 24 — (762 ) Other comprehensive income (loss) before reclassifications 171 30 (26 ) — 175 Reclassifications from accumulated other comprehensive loss to net income 12 (15 ) 6 — 3 Other comprehensive income (loss) 183 15 (20 ) — 178 Other comprehensive loss attributable to redeemable noncontrolling interests (1 ) — — — (1 ) December 31, 2017 (615 ) 26 4 — (585 ) Other comprehensive (loss) income before reclassifications (193 ) — 26 3 (164 ) Reclassifications from accumulated other comprehensive loss to net income 4 — (14 ) — (10 ) Other comprehensive (loss) income (189 ) — 12 3 (174 ) Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 — (26 ) — — (26 ) December 31, 2018 $ (804 ) $ — $ 16 $ 3 $ (785 ) (a) Effective January 1, 2018 , unrealized gains and losses on equity investments with readily determinable fair values are recorded in other (expense) income, net. (See Note 2 and Note 4.) |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | REDEEMABLE NONCONTROLLING INTERESTS 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 income (loss) ; 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. (See Note 19.) The table below summarizes the Company's redeemable noncontrolling interests balances (in millions). December 31, 2018 2017 OWN $ 58 $ 56 MTG 121 120 Discovery Family 206 210 Discovery Japan 30 27 Total $ 415 $ 413 The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions). December 31, 2018 2017 2016 Beginning balance $ 413 $ 243 $ 241 Initial fair value of redeemable noncontrolling interests of acquired businesses — 137 — Cash distributions to redeemable noncontrolling interests (25 ) (30 ) (22 ) Comprehensive income (loss) adjustments: Net income attributable to redeemable noncontrolling interests 20 24 23 Other comprehensive earnings attributable to redeemable noncontrolling interests — 1 — Currency translation on redemption values 2 — 1 Retained earnings adjustments: Adjustments to redemption value 3 38 — Interest adjustment 2 — — Ending balance $ 415 $ 413 $ 243 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 Harpo's remaining noncontrolling interest at fair value during four 90-day windows beginning on July 1, 2018 and every two and a half years thereafter through January 1, 2026 . Harpo exercised the first of such remaining put rights on August 20, 2018 . On November 6, 2018 , the Company and Harpo entered into an amendment to the limited liability company agreement whereby Harpo agreed to withdraw its August 20, 2018 put notice and upon any succeeding redemption the put payment value will equal the fair value of Harpo's equity interest in OWN plus an incremental 9.337% per annum for the 2.5 year period between the July 1, 2018 put right date and the January 1, 2021 put right date. 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. 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. In connection with its non-controlling 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 for one year after December 31, 2021 . Upon the exercise of the put or call options, the price to be paid for the redeemable noncontrolling interest is 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 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. In connection with its non-controlling 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. NONCONTROLLING INTEREST In conjunction with the acquisition of Scripps Networks, the Company acquired a controlling interest in the TV Food Network 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 | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES Disaggregated 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. Year Ended December 31, 2018 U.S. Networks International Networks Education and Other Corporate and inter-segment Total Revenues: Distribution $ 2,456 $ 2,082 $ — $ — $ 4,538 Advertising 3,749 1,765 — — 5,514 Other 145 302 54 — 501 Totals $ 6,350 $ 4,149 $ 54 $ — $ 10,553 Year Ended December 31, 2017 U.S. Networks International Networks Education and Other Corporate and inter-segment Total Revenues: Distribution $ 1,612 $ 1,862 $ — $ — $ 3,474 Advertising 1,740 1,332 1 — 3,073 Other 82 87 157 — 326 Totals $ 3,434 $ 3,281 $ 158 $ — $ 6,873 Year Ended December 31, 2016 U.S. Networks International Networks Education and Other Corporate and inter-segment Total Revenues: Distribution $ 1,532 $ 1,681 $ — $ — $ 3,213 Advertising 1,690 1,279 1 — 2,970 Other 63 80 173 (2 ) 314 Totals $ 3,285 $ 3,040 $ 174 $ (2 ) $ 6,497 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 the application of a practical expedient to record revenues as a function of royalties earned to date instead of estimating incremental royalty contract revenue. Accordingly, in these instances revenue is recognized based upon the royalties earned to date. However, there are certain other distribution arrangements that are fixed price or contain minimum guarantees that extend beyond one year. The Company recognizes revenue for fixed fee distribution contracts on a monthly basis based on minimum monthly fees or by calculating one twelfth of annual license fees specified in its distribution contracts. The transaction price allocated to remaining performance obligations within these fixed price or minimum guarantee distribution revenue contracts was $1.7 billion as of December 31, 2018 , and is expected to be recognized over the next nine 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 $511 million as of December 31, 2018 , and is expected to be recognized over the next six 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 $86 million as of December 31, 2018 , and is expected to be recognized over the next fourteen 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, i.e. 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 December 31, 2018 Accounts receivable $ 1,838 11,321 (10,527 ) (12 ) $ 2,620 Deferred revenues: Current 255 1,378 (1,371 ) (13 ) 249 Long term (a) 109 38 (27 ) — 120 December 31, 2016 Additions (d) Reductions (e) Foreign Currency December 31, 2017 Accounts receivable $ 1,495 7,074 (6,747 ) 16 $ 1,838 Deferred revenues: Current 163 936 (875 ) 31 255 Long term (a) 122 26 (43 ) 4 109 (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 3.) (c) This column includes the impact of the sale of the Education Business on April 30, 2018 . (See Note 3.) As of the sale date, accounts receivable and deferred revenue balances were $32 million and $74 million , respectively. (d) This column includes OWN accounts receivable and deferred revenues balances of $84 million and $5 million , respectively, as of November 30, 2017, the acquisition date, and TEN deferred revenues balance of $8 million as of September 25, 2017, the acquisition date. (See Note 3.) (e) This column includes the impact of the sale of Raw and Betty on April 28, 2017 . (See Note 3.) As of the sale date, accounts receivable and deferred revenue balances were $6 million and $17 million , respectively. Practical Expedients and Exemptions 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. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION The Company has various incentive plans under which stock options, RSUs, PRSUs and SARs have been issued. As of December 31, 2018 , the Company has reserved a total of 123 million shares of its Series A and Series C common stock for future exercises of outstanding and future grants of stock options and stock-settled SARs and future vesting of outstanding and future grants of PRSUs and RSUs. Upon exercise of stock options and stock-settled SARs or vesting of PRSUs and RSUs, the Company issues new shares from its existing authorized but unissued shares. There were 83 million shares of common stock in reserves that were available for future grant under the incentive plans as of December 31, 2018 . Share-Based Compensation Expense The table below presents the components of share-based compensation expense (in millions). Year Ended December 31, 2018 2017 2016 PRSUs $ 24 $ 6 $ 34 RSUs 27 23 17 Stock options 22 12 13 SARs 8 (3 ) 4 ESPP and other (1 ) 1 1 Total share-based compensation expense $ 80 $ 39 $ 69 Tax benefit recognized $ 13 $ 9 $ 25 Compensation expense for all awards was recorded in selling, general and administrative expense on the consolidated statements of operations. Liability-classified share-based compensation awards include certain PRSUs and SARs. The Company recorded total liabilities for cash-settled and other liability-classified share-based compensation awards of $54 million and $47 million as of December 31, 2018 and 2017 , respectively. The current portion of the liability for cash-settled awards was $23 million and $12 million as of December 31, 2018 and 2017 , respectively. Share-Based Award Activity PRSUs The table below presents PRSU activity (in millions, except years and weighted-average grant price). PRSUs Weighted- Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (years) Aggregate Fair Value Outstanding as of December 31, 2017 3.5 $ 33.41 0.9 $ 76 Granted 0.6 $ 24.06 Converted (1.1 ) $ 40.21 $ 25 Forfeited (0.1 ) $ 26.98 Outstanding as of December 31, 2018 2.9 $ 28.98 0.8 $ 69 Vested and expected to vest as of December 31, 2018 2.9 $ 28.98 0.8 $ 69 Convertible as of December 31, 2018 0.5 $ 39.96 0.0 $ 13 The Company has granted PRSUs to certain senior level executives. PRSUs represent the contingent right to receive shares of the Company’s Series A and C common stock, substantially all of which vest over three to four years based on continuous service and whether the Company achieves certain operating performance targets. The performance targets for substantially all PRSUs are cumulative measures of the Company’s adjusted operating income before depreciation and amortization (as defined in Note 23), free cash flows and revenues over a three -year period. The number of PRSUs that vest principally range from 0% to 100% based on a sliding scale where achieving or exceeding the performance target will result in 100% of the PRSUs vesting and achieving less than 80% of the target will result in no portion of the PRSUs vesting. Additionally, for certain PRSUs, the Company’s Compensation Committee has discretion in determining the final amount of units that vest, but may not increase the amount of any PRSU award above 100% . Upon vesting, each PRSU becomes convertible into one share of the Company’s Series A or Series C common stock as applicable. Holders of PRSUs do not receive payments of dividends in the event the Company pays a cash dividend until such PRSUs are converted into shares of the Company’s common stock. The Company records compensation expense for PRSUs ratably over the graded vesting service period once it is probable that the performance targets will be achieved. In any period in which the Company determines that achievement of the performance targets is not probable, the Company ceases recording compensation expense and all previously recognized compensation expense for the award is reversed. Compensation expense is separately recorded for each vesting tranche of PRSUs for a particular grant. For certain PRSUs, the Company measures the fair value and related compensation cost based on the closing price of the Company’s Series A or C common stock on the grant date. For PRSUs for which the Company’s Compensation Committee has discretion in determining the final amount of units that vest or in situations where the executive is able to withhold taxes in excess of the maximum statutory requirement, compensation cost is remeasured at each reporting date based on the closing price of the Company’s Series A or Series C common stock. As of December 31, 2018 , unrecognized compensation cost related to PRSUs was $16 million , which is expected to be recognized over a weighted-average period of 1.0 year based on the Company’s current assessment of the PRSUs that will vest, which may differ from actual results. RSUs The table below presents RSU activity (in millions, except years and weighted-average grant price). RSUs Weighted- Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (years) Aggregate Fair Value Outstanding as of December 31, 2017 3.4 $ 28.78 2.6 $ 77 Granted 3.6 $ 23.85 Converted (1.2 ) $ 26.68 $ 30 Forfeited (0.9 ) $ 27.38 Outstanding as of December 31, 2018 4.9 $ 25.95 2.6 $ 120 Vested and expected to vest as of December 31, 2018 4.9 $ 25.95 2.6 $ 120 RSUs represent the contingent right to receive shares of the Company's Series A and C common stock, substantially all of which vest ratably each year over periods of one to four years based on continuous service. As of December 31, 2018 , there was $78 million of unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 2.7 years . Stock Options The table below presents stock option activity (in millions, except years and weighted-average exercise price). Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding as of December 31, 2017 12.3 $ 27.46 3.5 $ 14 Granted (a) 15.1 $ 27.51 Exercised (3.9 ) $ 18.14 $ 30 Forfeited (2.4 ) $ 30.47 Outstanding as of December 31, 2018 21.1 $ 28.86 5.3 $ 9 Vested and expected to vest as of December 31, 2018 21.1 $ 28.86 5.3 $ 9 Exercisable as of December 31, 2018 5.1 $ 29.92 2.6 $ 7 (a) Stock options granted during the year ended December 31, 2018 include 2 million awards granted in connection with the acquisition of Scripps Networks. Stock options are granted with an exercise price equal to or in excess of the closing market price of the Company’s Series A or Series C common stock on the date of grant. Substantially all stock options vest ratably over three to four years from the grant date based on continuous service and expire seven to ten years from the date of grant. Stock option awards generally provide for accelerated vesting upon retirement or after reaching a specified age and years of service. The Company received cash payments from the exercise of stock options totaling $68 million , $42 million and $46 million during 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , there was $107 million of unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted-average period of 3.7 years . The fair value of stock options is estimated using the Black-Scholes option-pricing model. The weighted-average assumptions used to determine the fair value of stock options as of the date of grant during 2018 , 2017 and 2016 were as follows. Year Ended December 31, 2018 2017 2016 Risk-free interest rate 2.74 % 1.87 % 1.26 % Expected term (years) 5.5 5.0 5.0 Expected volatility 29.57 % 27.52 % 28.74 % Dividend yield — — — The weighted-average grant date fair value of options granted during 2018 , 2017 and 2016 was $7.95 , $7.99 and $7.09 , respectively, per option. The total intrinsic value of options exercised during 2018 , 2017 and 2016 was $30 million , $26 million and $42 million , respectively. SARs The table below presents SAR award activity (in millions, except years and weighted-average grant price). SARs Weighted- Average Grant Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding as of December 31, 2017 7.7 $ 31.58 1.0 $ — Granted 3.7 $ 22.37 Settled (0.1 ) $ 26.80 $ — Forfeited (3.7 ) $ 35.75 Outstanding as of December 31, 2018 7.6 $ 25.10 1.2 $ 6 Vested and expected to vest as of December 31, 2018 7.6 $ 25.10 1.2 $ 6 SAR award grants include cash-settled SARs and stock-settled SARs. Cash-settled SARs entitle the holder to receive a cash payment for the amount by which the price of the Company’s Series A or Series C common stock exceeds the base price established on the grant date. Cash-settled SARs are granted with a base price equal to or greater than the closing market price of the Company’s Series A or Series C common stock on the date of grant. Stock-settled SARs entitle the holder to shares of Series A or Series C common stock in accordance with the award agreement terms. The fair value of outstanding SARs is estimated using the Black-Scholes option-pricing model. The weighted-average assumptions used to determine the fair value of outstanding SARs were as follows. Year Ended December 31, 2018 2017 2016 Risk-free interest rate 2.53 % 1.74 % 0.95 % Expected term (years) 1.2 1.0 0.9 Expected volatility 36.52 % 31.37 % 29.46 % Dividend yield — — — As of December 31, 2018 and 2017 , the weighted-average fair value of SARs outstanding was $3.31 and $1.01 per award. The Company made no cash payments to settle exercised SARs during 2018 . The Company made cash payments of $1 million and $5 million to settle exercised SARs during 2017 and 2016 , respectively. As of December 31, 2018 , there was $13 million of unrecognized compensation cost related to SARs, which is expected to be recognized over a weighted-average period of 1.1 years . Employee Stock Purchase Plan The ESPP enables eligible employees to purchase shares of the Company’s common stock through payroll deductions or other permitted means. Unless otherwise determined by the Company’s Compensation Committee, the purchase price for shares offered under the ESPP is 85% of the closing price of the Company’s Series A common stock on the purchase date. The Company recognizes the fair value of the discount associated with shares purchased in selling, general and administrative expense on the consolidated statement of operations. The Company’s Board of Directors has authorized 9 million shares of the Company’s common stock to be issued under the ESPP. During the years ended December 31, 2018 , 2017 and 2016 the Company issued 133 thousand , 179 thousand and 191 thousand shares under the ESPP, respectively, and received cash totaling $3 million , $ 4 million and $4 million , respectively. |
Retirement Savings Plans
Retirement Savings Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Savings Plans | RETIREMENT SAVINGS PLANS The Company has defined contribution and other savings plans for the benefit of its employees that meet eligibility requirements. In addition to these plans, as a result of the acquisition of Scripps Networks on March 6, 2018 , the Company assumed the following employee defined benefit plans previously sponsored by Scripps Networks: (i) a qualified defined benefit pension plan ("Pension Plan") that covers certain U.S. based employees and (ii) a non-qualified unfunded Supplemental Executive Retirement Plan ("SERP"), which in addition to the Pension Plan provides defined pension benefits to eligible executives, (iii) defined contribution plan and (iv) executive deferred compensation plan. Defined Contribution Plans Eligible employees may contribute a portion of their compensation to the plans, which may be subject to certain statutory limitations. For these plans, the Company also makes contributions including discretionary contributions, subject to plan provisions, which vest immediately. The Company made total contributions of $41 million , $30 million and $29 million during 2018 , 2017 and 2016 , respectively. The Company's contributions were recorded in cost of revenues and selling, general and administrative expense in the consolidated statements of operations. Employees of TVN and their subsidiaries are covered by state managed defined contribution plans. The Company made total contributions of $3 million in 2018 . The Company's contributions were recorded in cost of revenues and selling, general and administrative expense in the consolidated statements of operations. Executive Deferred Compensation Plans The Company’s savings plans also include a deferred compensation plan through which members of the Company’s executive team in the U.S. may elect to defer a portion of their eligible compensation. The amounts deferred are invested in various mutual funds at the direction of the executive, which are used to finance payment of the deferred compensation obligation. Distributions from the deferred compensation plan are made upon termination or other events as specified in the plan. The Company has established separate rabbi trusts to hold the investments that finance the deferred compensation obligation. The accounts of the separate rabbi trusts are included in the Company’s consolidated financial statements. The investments are included in prepaid expenses and other current assets and other noncurrent assets. The deferred compensation obligation is included in accrued liabilities and other noncurrent liabilities in the consolidated balance sheets. The values of the investments and deferred compensation obligation are recorded at fair value. Changes in the fair value of the investments are offset by changes in the fair value of the deferred compensation obligation and are recorded in earnings as a component of other (expense) income, net, on the consolidated statements of operations. (See Note 5.) Defined Benefit Plans 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. Since 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 components of the net periodic pension cost for the Pension Plan and SERP (in millions). The components of net periodic pension costs are reflected in other expense, net in the consolidated statements of operations. Year Ended December 31, 2018 Pension Plan SERP Interest cost $ 3 $ 1 Expected return on plan assets, net of expenses (4 ) — Settlement charges — (2 ) Net periodic pension cost $ (1 ) $ (1 ) During the period March 6, 2018 to December 31, 2018 , the Company contributed $21 million to the Pension Plan and made $31 million SERP benefit payments. Of the $21 million contributed to the Pension Plan during the period, $3 million was considered required funding. The Company does no t anticipate contributing any cash to fund the Pension Plan and anticipates contributing $8 million to fund SERP benefit payments in 2019. Assumptions used in determining the Pension Plan and SERP expense as of December 31, 2018. December 31, 2018 Pension Plan SERP Discount rate 3.84 % 3.41 % Long-term rate of return on plan assets 7.50 % N/A Rate of compensation increases 3.57 % 3.21 % Assumption Description Discount rate Based on a bond portfolio approach that includes high-quality debt instruments 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 past experience and the near-term outlook. Mortality RP 2014 mortality tables adjusted and projected using the scale MP-2018 mortality improvement rates. Obligations and Funded Status The following table presents information about plan assets and obligations of the Pension Plan and SERP based upon a valuation as of December 31, 2018. Year Ended December 31, 2018 Pension Plan SERP Accumulated benefit obligation $ 81 $ 24 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 96 $ 62 Interest cost 3 1 Benefits paid (1 ) — Actuarial gains (5 ) (5 ) Curtailments (1 ) — Settlement charges (a) (8 ) (32 ) Projected benefit obligation at end of year 84 26 Plan assets: Fair value at beginning of year 60 — Actual return on plan assets (2 ) — Company contributions 21 32 Benefits paid (1 ) — Settlement charges (a) (8 ) (32 ) Fair value at end of year 70 — Underfunded status $ (14 ) $ (26 ) Amounts recognized as assets and liabilities in the consolidated balance sheets: Current liabilities $ — $ (7 ) Non-current liabilities (14 ) (19 ) Total $ (14 ) $ (26 ) Amounts recognized in accumulated other comprehensive loss consist of: Net gain $ — $ (3 ) (a) In 2018, Discovery incurred pension settlement charges primarily related to former employees impacted by the restructuring plan. Other changes in plan assets and benefit obligations recognized in net periodic benefit cost and other comprehensive loss for the defined benefit plans, following the acquisition of Scripps Networks, consist of the following. Year Ended December 31, 2018 Pension Plan SERP Net actuarial loss (gain) $ 1 $ (5 ) Curtailments (1 ) — Settlement charges — 2 Total recognized in other comprehensive (income) loss — (3 ) Net periodic benefit cost (1 ) (1 ) Total recognized in net periodic benefit cost and other comprehensive loss $ (1 ) $ (4 ) The Company does not expect to amortize any amounts related to the Pension Plan or SERP from accumulated other comprehensive loss into net periodic benefit cost for the net actuarial gain during 2019. Assumptions used in determining benefit obligations for the defined benefit plans were as follows. December 31, 2018 Pension Plan SERP Discount rate 3.93 % 3.77 % Rate of compensation increases 3.23 % 2.89 % Plan Assets The Company's investment policy is to maximize the total rate of return on plan assets to meet the long-term funding obligations of the Pension Plan. There are no restrictions on types of investments held in the Pension Plan, which are invested using a combination of active management and passive investment strategies. Risk is controlled through diversification among multiple asset classes, managers, styles and securities. Risk is further controlled both at the manager and asset class level by assigning return targets and evaluating performance against these targets. The following table presents Pension Plan asset allocations by asset category. Investment Type Target Allocations for 2019 December 31, 2018 Debt securities 90 % 89 % U.S. equity securities 10 % 8 % Cash — % 3 % Total 100 % 100 % Investment Type Description Debt securities Includes securities issued or guaranteed by the U.S. government and corporate debt obligations. U.S. equity securities Includes common stocks of large, medium and small companies that are predominantly U.S.-based. Cash Fair Value Measurements Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. December 31, 2018 Total Level 1 Level 2 Level 3 Debt securities Mutual funds $ 62 $ 62 — — U.S. equity securities Mutual funds 6 6 — — Cash 2 2 — — Total $ 70 $ 70 $ — $ — Estimated Benefit Payments The following table presents the estimated future benefit payments expected to be paid out for the defined benefits plans over the next ten years. Pension Plan SERP 2019 $ 5 $ 8 2020 5 2 2021 4 2 2022 5 2 2023 7 2 Thereafter 29 7 |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | RESTRUCTURING AND OTHER CHARGES Restructuring and other charges by reportable segment, education and other, and corporate and inter-segment eliminations were as follows (in millions). Year Ended December 31, 2018 2017 2016 U.S. Networks $ 322 $ 18 $ 15 International Networks 307 42 26 Education and Other 1 3 3 Corporate and inter-segment eliminations 120 12 14 Total restructuring and other charges $ 750 $ 75 $ 58 Year Ended December 31, 2018 2017 2016 Restructuring charges $ 345 $ 68 $ 55 Other charges 405 7 3 Total restructuring and other charges $ 750 $ 75 $ 58 Restructuring charges include contract terminations, employee terminations and facility closures. For the year ended December 31, 2018 , these charges result from activities to integrate Scripps Networks and establish an efficient cost structure. Contract-related restructuring charges include costs to terminate certain production commitments, life of series production and content licensing 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 that resulted from strategic programming changes following the acquisition of Scripps Networks. Charges incurred in 2017 and 2016 resulted from management changes and cost reduction efforts, including employee terminations, intended to enable the Company to more efficiently operate in a leaner and more directed cost structure and invest in growth initiatives, including digital services and content creation. Changes in restructuring and other liabilities recorded in accrued liabilities and other noncurrent liabilities by reportable segment, education and other, and corporate and inter-segment eliminations were as follows (in millions). U.S. Networks International Networks Education and Other Corporate and inter-segment eliminations Total December 31, 2016 $ 11 $ 11 $ — $ 17 $ 39 Net contract termination accruals 3 — — — 3 Net employee relocation/termination accruals 12 42 4 7 65 Cash paid (21 ) (28 ) (3 ) (12 ) (64 ) December 31, 2017 5 25 1 12 43 Net contract termination accruals 12 67 — 14 93 Net employee relocation/termination accruals 89 56 1 99 245 Cash paid (90 ) (102 ) (2 ) (79 ) (273 ) December 31, 2018 $ 16 $ 46 $ — $ 46 $ 108 Net accruals for the year ended December 31, 2018 do not include $7 million of Scripps Networks share-based awards exchanged for Discovery shares as of March 6, 2018 recorded in APIC and included in restructuring charges for the year ended December 31, 2018 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The domestic and foreign components of income (loss) before income taxes were as follows (in millions). Year Ended December 31, 2018 2017 2016 Domestic $ 1,125 $ 815 $ 1,414 Foreign (103 ) (952 ) 257 Income (loss) before income taxes $ 1,022 $ (137 ) $ 1,671 The components of the provision for income taxes were as follows (in millions). Year Ended December 31, 2018 2017 2016 Current: Federal $ 323 $ 177 $ 384 State and local 30 45 (56 ) Foreign 119 153 152 472 375 480 Deferred: Federal (113 ) (124 ) 45 State and local (21 ) (7 ) — Foreign 3 (68 ) (72 ) (131 ) (199 ) (27 ) Income taxes $ 341 $ 176 $ 453 On December 22, 2017, new federal tax reform legislation was enacted in the United States, resulting in significant changes from previous tax law. The TCJA revised the U.S. corporate income tax by among other things, 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 film, 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. In addition, the TCJA imposed a mandatory repatriation toll tax on unremitted foreign earnings. The U.S. taxation of these amounts notwithstanding, 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 U.S. federal income tax return was filed in October 2018 and there were no material adjustments related to TCJA. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant did not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the TCJA. The Company recognized provisional tax impacts related to the deemed repatriated earnings and the revaluation of deferred tax assets and liabilities in its consolidated financial statements for the year ended December 31, 2017. Adjustments made to the provisional amounts allowed under SAB 118 were identified and recorded as discrete adjustments during the year ended December 31, 2018. The Company has completed its accounting for all TCJA tax effects and there were no material adjustments to the provisional net tax benefit recognized in 2017. The following table reconciles the Company's effective income tax rates to the U.S. federal statutory income tax rates. Year Ended December 31, 2018 2017 2016 U.S. federal statutory income tax provision $ 215 21 % $ (48 ) 35 % $ 585 35 % State and local income taxes, net of federal tax benefit 10 1 % 23 (18 )% (36 ) (2 )% Effect of foreign operations 111 11 % (35 ) 25 % (17 ) (1 )% Domestic production activity deductions — — % (52 ) 39 % (62 ) (4 )% Change in uncertain tax positions 37 3 % 60 (44 )% 8 — % Preferred stock modification — — % 12 (9 )% — — % Goodwill impairment — — % 458 (334 )% — — % Renewable energy investments tax credits (See Note 4) (12 ) (1 )% (195 ) 142 % (17 ) (1 )% Noncontrolling interest adjustment (18 ) (2 )% — — % — — % U.S. Legislative Changes (19 ) (2 )% (43 ) 32 % — — % Non-deductible compensation 20 2 % — — % — — % Other, net (3 ) — % (4 ) 4 % (8 ) — % Income tax expense $ 341 33 % $ 176 (128 )% $ 453 27 % Income tax expense was $341 million and $176 million , and our effective tax rate was 33% and (128)% for 2018 and 2017 , respectively. During 2018, the increase in the income tax expense was primarily attributable to an increase in income, a reduction in benefits from investment tax credits from our renewable energy investments, the effect of foreign operations, which included establishment of valuation allowances and write-offs of deferred tax assets, and elimination of the domestic production activity deduction, partially offset by the lower U.S. Federal statutory income tax rate, a decrease in expense for uncertain tax positions, and a tax benefit from TCJA rate change on the deferred tax liability recomputation as a result of U.S. legislative changes that extended the accelerated deduction of qualified film productions. Income tax expense was $176 million and $453 million and our effective tax rate was (128)% and 27% for 2017 and 2016, respectively. During 2017, the decrease in the effective tax rate was primarily attributable to the impact of a goodwill impairment charge that is non-deductible for tax purposes. Thereafter, the decrease in the effective tax rate was primarily due to investment tax credits that the Company received related to its renewable energy investments, and to a lesser extent, the domestic production activity deduction benefit, the allocation and taxation of income among multiple foreign and domestic jurisdictions, and the impact of the TCJA. The benefits were partially offset by an increase in reserves for uncertain tax positions in 2017. In 2016, the Company favorably resolved multi-year state tax positions that resulted in a reduction of reserves related to uncertain tax positions that did not recur in 2017. Components of deferred income tax assets and liabilities were as follows (in millions). December 31, 2018 2017 Deferred income tax assets: Accounts receivable $ 11 $ 5 Tax attribute carry-forward 321 151 Accrued liabilities and other 302 190 Total deferred income tax assets 634 346 Valuation allowance (336 ) (105 ) Net deferred income tax assets 298 241 Deferred income tax liabilities: Intangible assets (1,418 ) (315 ) Content rights (107 ) (82 ) Equity method investments in partnerships (488 ) (68 ) Other (15 ) (31 ) Total deferred income tax liabilities (2,028 ) (496 ) Net deferred income tax liabilities $ (1,730 ) $ (255 ) The Company’s net deferred income tax assets and liabilities were reported on the consolidated balance sheets as follows (in millions). December 31, 2018 2017 Noncurrent deferred income tax assets (included within other noncurrent assets) $ 81 $ 64 Deferred income tax liabilities (classified on the balance sheet) (1,811 ) (319 ) Net deferred income tax liabilities $ (1,730 ) $ (255 ) The Company’s loss carry-forwards were reported on the consolidated balance sheets as follows (in millions). State Foreign Loss carry-forwards $ 322 $ 1,727 Deferred tax asset related to loss carry-forwards 16 249 Valuation allowance against loss carry-forwards (17 ) (201 ) Earliest expiration date of loss carry-forwards 2019 2019 A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest and penalty amounts) is as follows (in millions). Year Ended December 31, 2018 2017 2016 Beginning balance $ 189 $ 117 $ 173 Additions based on tax positions related to the current year 43 27 13 Additions for tax positions of prior years 52 57 19 Additions for tax positions acquired in business combinations 169 — — Reductions for tax positions of prior years (9 ) — (60 ) Settlements (6 ) (8 ) (16 ) Reductions due to lapse of statutes of limitations (52 ) (6 ) (9 ) (Reductions) additions due to foreign currency exchange rates (8 ) 2 (3 ) Ending balance $ 378 $ 189 $ 117 The balances as of December 31, 2018 , 2017 and 2016 included $378 million , $189 million and $117 million , respectively, of unrecognized tax benefits that, if recognized, would reduce the Company’s income tax expense and effective tax rate after giving effect to interest deductions and offsetting benefits from other tax jurisdictions. For the year ended December 31, 2018 , increases in unrecognized tax benefits related to the uncertainty of allocation and taxation of income among multiple jurisdictions was offset by the movements of tax positions as a result of multiple audit resolutions and lapse of statutes of limitations. The uncertain tax positions balance as of December 31, 2018 includes tax additions of $169 million (prior to current year activity) related to Scripps Networks upon the acquisition 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, an estimate of any related impact to the reserve 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 . Adjustments that arose from the completion of audi ts for certain tax years have been included in the change in uncertain tax positions in the table above. 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 $101 million within the next twelve months as a result of ongoing audits, foreign judicial proceedings, lapses of statutes of limitations or regulatory developments. As of December 31, 2018 , 2017 and 2016 , the Company had accrued approximately $51 million , $21 million and $11 million , respectively, of total interest and penalties payable related to unrecognized tax benefits. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. In connection with the acquisition of Scripps Networks, the Company recorded reserves in purchase accounting totaling $110 million for foreign tax matters claimed by tax authorities that are currently pending resolution. After the purchase accounting measurement period closes on March 5, 2019, any adjustment to these estimated amounts resulting from their resolution will affect net income in the period resolved. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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 (loss). 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 (loss) available to Discovery, Inc. The Company's Series A-1 convertible preferred stock is treated as a separate class for purposes of applying the two-class method. The table below sets forth the computation for income (loss) available to Discovery, Inc. stockholders (in millions). Year Ended December 31, 2018 2017 2016 Numerator: Net income (loss) $ 681 $ (313 ) $ 1,218 Less: Allocation of undistributed income to Series A-1 convertible preferred stock (60 ) 41 (139 ) Net income attributable to noncontrolling interests (67 ) — (1 ) Net income attributable to redeemable noncontrolling interests (20 ) (24 ) (23 ) Redeemable noncontrolling interest adjustments to redemption value (5 ) — — Net income (loss) available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 529 $ (296 ) $ 1,055 Allocation of net income (loss) available to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: Series A, B and C common stockholders 429 (225 ) 789 Series C-1 convertible preferred stockholders 100 (71 ) 266 Total 529 (296 ) 1,055 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders 60 (41 ) 139 Net income (loss) available to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 589 $ (337 ) $ 1,194 Net income (loss) allocated to Discovery, Inc. Series C-1 convertible preferred stockholders for diluted net income (loss) per share is included in net income (loss) allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income (loss) per share. For the year ended December 31, 2018 , net income allocated to Discovery, Inc. Series C-1 convertible preferred stockholders used to calculate diluted income per share was $100 million . For the years ended years ended December 31, 2017 and December 31, 2016 , net (loss) income allocated to Discovery, Inc. Series C-1 convertible preferred stockholders used to calculate diluted net (loss) income per share were $(71) million and $265 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). Year Ended December 31, 2018 2017 2016 Denominator — weighted average: Series A, B and C common shares outstanding — basic 498 384 401 Impact of assumed preferred stock conversion 187 192 206 Dilutive effect of share-based awards 3 — 3 Series A, B and C common shares outstanding — diluted 688 576 610 Series C-1 convertible preferred stock outstanding — basic and diluted 6 6 7 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. For 2017 , the weighted average number of shares outstanding for the computation of diluted loss per share does not include 2 million of share-based awards, as the effects of these potentially outstanding shares would have been anti-dilutive. The table below sets forth the Company's calculated earnings (loss) per share. Year Ended December 31, 2018 2017 2016 Basic net income (loss) per share available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.86 $ (0.59 ) $ 1.97 Series C-1 convertible preferred stockholders $ 16.65 $ (11.33 ) $ 38.07 Diluted net income (loss) per share available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.86 $ (0.59 ) $ 1.96 Series C-1 convertible preferred stockholders $ 16.58 $ (11.33 ) $ 37.88 Earnings (loss) per share amounts may not recalculate due to rounding. The computation of the diluted earnings (loss) 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 share-based awards that were excluded from the calculation of diluted earnings per share (in millions). Year Ended December 31, 2018 2017 2016 Anti-dilutive share-based awards 15 19 8 PRSUs whose performance targets have not yet been achieved 1 2 4 Anti-dilutive common stock repurchase contracts — — 2 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. Pursuant to the Exchange Agreement with Advance/Newhouse on July 30, 2017, 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 12). The Exchange was 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 preferred stock for the year ended December 31, 2016 in order to conform with earnings per share that would have been available for Series C-1 preferred stock. 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 impact of the preferred stock modification to the Company's calculated basic earnings per share: Year Ended December 31, 2016 Pre-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 1.97 Series C-1 convertible preferred stockholders $ 3.94 Post-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 1.97 Series C-1 convertible preferred stockholders $ 38.07 |
Supplemental Disclosures
Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Disclosures | SUPPLEMENTAL DISCLOSURES Valuation and Qualifying Accounts Changes in valuation and qualifying accounts consisted of the following (in millions): Beginning of Year Additions Write-offs End of Year 2018 Allowance for doubtful accounts $ 55 $ 6 $ (15 ) $ 46 Deferred tax valuation allowance (a) 105 283 (52 ) 336 2017 Allowance for doubtful accounts 47 12 (4 ) 55 Deferred tax valuation allowance 25 84 (4 ) 105 2016 Allowance for doubtful accounts 40 13 (6 ) 47 Deferred tax valuation allowance 19 9 (3 ) 25 (a) Additions to the valuation allowance for deferred tax assets of $195 million relate to balances acquired through acquisitions in the current year, with the remainder charged to income tax expense. Accrued Liabilities Accrued liabilities consisted of the following (in millions): December 31, 2018 2017 Accrued payroll and related benefits $ 484 $ 535 Content rights payable 384 219 Accrued interest 154 148 Other accrued liabilities 541 407 Total accrued liabilities $ 1,563 $ 1,309 Other Expense, net Other (expense) income, net , consisted of the following (in millions): Year Ended December 31, 2018 2017 2016 Foreign currency (losses) gains, net $ (93 ) $ (83 ) $ 75 Gains (losses) on derivative instruments 50 (82 ) (12 ) Remeasurement gain on previously held equity interest — 33 — Change in the value of common stock investments with readily determinable fair value (a) (88 ) — — Interest income (b) 15 21 — Other-than-temporary impairment of AFS investments — — (62 ) Other (expense) income, net (4 ) 1 3 Total other (expense) income, net $ (120 ) $ (110 ) $ 4 (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 2 and 4). (b) Interest income for the years ended December 31, 2018 and 2017 is comprised primarily of interest on proceeds from the issuance of senior notes used to fund the acquisition of Scripps Networks. As of December 31, 2018 , the Company had liquidated and utilized the proceeds in the acquisition of Scripps Networks. Share-Based Plan Proceeds, Net Share-based plan proceeds, net in the statement of cash flows consisted of the following (in millions): (a) Year Ended December 31, 2018 2017 2016 Tax settlements associated with share-based plans $ (18 ) $ (30 ) $ (11 ) Proceeds from issuance of common stock in connection with share-based plans 72 46 50 Total share-based plan proceeds, net $ 54 $ 16 $ 39 (a) Share-based plan payments, net includes the retrospective reclassification of windfall tax benefits or deficiencies from financing activities or operating activities in the statement of cash flows presentation pursuant to the adoption of the guidance on share-based payments on January 1, 2017 . There were $7 million in net windfall tax adjustments for the year ended December 31, 2016 reclassified from financing activities to operating activities. (See Note 2). Supplemental Cash Flow Information Year Ended December 31, 2018 2017 2016 Cash paid for taxes, net (a) $ 389 $ 274 $ 527 Cash paid for interest 740 357 343 Non-cash investing and financing activities: Fair value of assets and liabilities of business received in exchange for redeemable noncontrolling interests (b) — 144 — Fair value of investment received, net of cash paid — — 82 Net asset value of contributed business — — 32 Equity issued for the acquisition of Scripps Networks 3,218 — — Accrued purchases of property and equipment 39 24 42 Assets acquired under capital lease arrangements 58 103 37 (a) The increase in cash paid for taxes, net, between 2017 and 2018 is mostly due to non-recurring tax benefits from the Company's investments in limited liability companies that sponsor renewable energy projects in 2017 (See Note 4), partially offset by the lower tax rate enacted as part of the TCJA, in addition to higher foreign tax payments, and a decrease in refunds. (b) Amount relates to the Company's MTG joint venture. (See Note 3.) The joint venture was affected via DCL's contribution of the Velocity network to a newly formed entity, MTG, which is a non-guarantor subsidiary of the Company and is reflected as a non-cash contribution in the condensed consolidating financial statements. (See Note 25.) The table above does not include the November 30, 2017 , acquisition of a controlling interest in OWN from Harpo. The Company increased its ownership stake from 49.50% to 73.75% . Upon consolidation, a cash payment for a portion of this business resulted in inclusion of the fair value of all of the net assets and liabilities of OWN in Discovery's consolidated financial statements. (See Note 3.) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 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 28% 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). Year Ended December 31, 2018 2017 2016 Revenues and service charges: Liberty Group $ 627 $ 476 $ 387 Equity method investees 289 145 129 Other 69 46 32 Total revenues and service charges $ 985 $ 667 $ 548 Interest income $ 4 $ 13 $ 17 Expenses $ (321 ) $ (178 ) $ (102 ) The table below presents receivables due from related parties (in millions). December 31, 2018 2017 Receivables $ 167 $ 105 Note receivable (See Note 4.) (a) 94 — (a) Amount relates to a note receivable with UKTV, an equity method investee acquired in conjunction with the acquisition of Scripps Networks. (See Note 4.) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contractual Commitments The Company’s undiscounted contractual commitments increased significantly following the acquisition of Scripps Networks. As of December 31, 2018 , the Company’s significant contractual commitments, including related payments due by period, were as follows (in millions). Leases Year Ending December 31, Operating Capital Content Other Total 2019 $ 89 $ 51 $ 1,431 $ 523 $ 2,094 2020 90 46 960 352 1,448 2021 92 41 510 200 843 2022 58 34 554 123 769 2023 51 41 418 76 586 Thereafter 564 73 2,139 89 2,865 Total minimum payments 944 286 6,012 1,363 8,605 Amounts representing interest — (34 ) — — (34 ) Total $ 944 $ 252 $ 6,012 $ 1,363 $ 8,571 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. 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 . Included in the table above are the undiscounted future lease payments for the New York City headquarters totaling approximately $535 million . Portions of the lease are expected to commence on various dates throughout 2019 as each floor becomes available for use by the Company. During the third quarter, the Company entered into a sale-lease back transaction for the Silver Spring property. The lease is classified as an operating lease. As a result of the sale, the Company received net proceeds of $68 million and recognized an impairment loss of $12 million for the year ended December 31, 2018 which is reflected in depreciation and amortization on the consolidated statements of operations. 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 December 31, 2018 , the Company may also provide uncommitted additional funding to its equity method investments in the future. (See Note 4.) 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 $58 million , $121 million , $206 million and $30 million , respectively. (See Note 11.) Legal Matters The Company is party to various other 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 other matters will have a material adverse effect on the Company's 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 $40 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 December 31, 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 December 31, 2018 and 2017 . |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 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, education and other, and corporate and inter-segment eliminations (in millions). Revenues Year Ended December 31, 2018 2017 2016 U.S. Networks $ 6,350 $ 3,434 $ 3,285 International Networks 4,149 3,281 3,040 Education and Other 54 158 174 Corporate and inter-segment eliminations — — (2 ) Total revenues $ 10,553 $ 6,873 $ 6,497 Adjusted OIBDA Year Ended December 31, 2018 2017 2016 U.S. Networks $ 3,500 $ 2,026 $ 1,922 International Networks 1,077 859 835 Education and Other 3 6 (10 ) Corporate and inter-segment eliminations (441 ) (360 ) (334 ) Total Adjusted OIBDA $ 4,139 $ 2,531 $ 2,413 Reconciliation of Net Income (Loss) Available to Discovery, Inc. to Total Adjusted OIBDA Year Ended December 31, 2018 2017 2016 Net income (loss) available to Discovery, Inc. $ 594 $ (337 ) $ 1,194 Net income attributable to redeemable noncontrolling interests 20 24 23 Net income attributable to noncontrolling interests 67 — 1 Income tax expense 341 176 453 Income (loss) before income taxes 1,022 (137 ) 1,671 Other expense (income), net 120 110 (4 ) Loss from equity investees, net 63 211 38 Loss on extinguishment of debt — 54 — Interest expense, net 729 475 353 Operating income 1,934 713 2,058 (Gain) loss on disposition (84 ) 4 (63 ) Restructuring and other charges 750 75 58 Depreciation and amortization 1,398 330 322 Impairment of goodwill — 1,327 — Mark-to-market share-based compensation 31 3 38 Scripps Networks transaction and integration costs 110 79 — Total Adjusted OIBDA $ 4,139 $ 2,531 $ 2,413 Total Assets December 31, 2018 2017 U.S. Networks $ 18,683 $ 4,127 International Networks 7,208 5,187 Education and Other 227 394 Corporate and inter-segment eliminations 6,432 12,847 Total assets $ 32,550 $ 22,555 The presentation of segment assets in the table above is consistent with the financial reports that are reviewed by the Company's CEO. Total assets for corporate and inter-segment eliminations include goodwill that is allocated to the Company's segments. The goodwill allocated from corporate assets to U.S. Networks and International Networks is included in the goodwill balances disclosed in Note 8. The goodwill recorded as a result of the acquisition of Scripps Networks is $6.1 billion (see Note 3). Content Amortization and Impairment Expense Year Ended December 31, 2018 2017 2016 U.S. Networks $ 1,702 $ 776 $ 756 International Networks 1,584 1,126 1,008 Education and Other 2 8 9 Total content amortization and impairment expense $ 3,288 $ 1,910 $ 1,773 Content amortization and impairment expense are generally included in costs of revenues on the consolidated statements of operations (see Note 6). Content impairments of $405 million for the year ended December 31, 2018 , were due to strategic program changes following the acquisition of Scripps Networks and are reflected in restructuring and other charges as further described in Note 17. No content impairments were recorded as a component of restructuring and other during the year ended December 31, 2017 , and content impairments of $ 7 million were recorded as a component of restructuring and other charges for the year ended December 31, 2016 . Revenues by Geography Year Ended December 31, 2018 2017 2016 U.S. $ 6,415 $ 3,560 $ 3,411 Non-U.S. 4,138 3,313 3,086 Total revenues $ 10,553 $ 6,873 $ 6,497 Distribution and advertising revenues are attributed to each country based on viewer location. Other revenues are attributed to each country based on customer location. Property and Equipment by Geography December 31, 2018 2017 U.S. $ 350 $ 309 Poland 185 — U.K. 160 173 Other non-U.S. 105 115 Total property and equipment, net $ 800 $ 597 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2018 (a)(e) 1 st quarter 2 nd quarter 3 rd quarter 4 th quarter Revenues $ 2,307 $ 2,845 $ 2,592 $ 2,809 Operating income 204 650 369 711 Net income 3 244 135 299 Net (loss) income available to Discovery, Inc. (8 ) 216 117 269 Earnings (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: Basic $ (0.01 ) $ 0.30 $ 0.16 $ 0.38 Diluted $ (0.01 ) $ 0.30 $ 0.16 $ 0.38 2017 (b)(c)(d)(e) 1 st quarter 2 nd quarter 3 rd quarter 4 th quarter Revenues $ 1,613 $ 1,745 $ 1,651 $ 1,864 Operating income (loss) 487 630 433 (837 ) Net income (loss) 221 380 223 (1,137 ) Net income (loss) available to Discovery, Inc. 215 374 218 (1,144 ) Earnings (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: Basic $ 0.37 $ 0.65 $ 0.38 $ (1.99 ) Diluted $ 0.37 $ 0.64 $ 0.38 $ (1.99 ) (a) On March 6, 2018 , Discovery acquired Scripps Networks pursuant to the Merger Agreement. 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. (See Note 3.) (b) Goodwill impairment expense of $1.3 billion was recognized during the fourth quarter of 2017 . (See Note 8.) (c) On September 25, 2017 , the Company acquired a 67.5% controlling interest in MTG, a new joint venture with GoldenTree, in exchange for its contribution of the MotorTrend (previously known as Velocity). On November 30, 2017 , the Company acquired a controlling interest in OWN from Harpo, increasing Discovery’s ownership stake from 49.50% to 73.75% . 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 interest. On April 28, 2017 , the Company sold Raw and Betty to All3Media and recorded a loss of $4 million upon disposition. (See Note 3.) As of December 31, 2017 , the Company had incurred transaction and integration costs for the Scripps Networks acquisition of $79 million , including the $35 million charge associated with the modification of Advance/Newhouse's preferred stock. (See Note 12.) (d) In March 2017 , DCL completed a cash tender offer for $600 million aggregate principal amount of DCL's 5.050% senior notes due 2020 and 5.625% senior notes due 2019. This transaction resulted in a pretax loss on extinguishment of debt of $54 million for the year ended December 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. (See Note 9.) (e) Earnings (loss) per share amounts may not sum to annual total since each is calculated independently. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | CONDENSED CONSOLIDATING FINANCIAL INFORMATION Overview As of December 31, 2018 and 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 9.) 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, (vi) the non-guarantor subsidiaries of Discovery which includes Discovery Holding Company ("DHC") and Scripps Networks on a combined basis, and (vii) 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 include substantially all of the Company’s other U.S. and international networks, 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 along with the operations of Scripps Networks. 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 9). 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 9.) The condensed consolidated financial statements presented below reflect the addition of Scripps Networks as a guarantor as of December 31, 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. On September 25, 2017 , the Company acquired a 67.5% controlling interest in MTG, a new joint venture with GoldenTree, in exchange for its contribution of the Velocity network. The MTG non-cash transaction and all related financial activity is included within the non-guarantor subsidiaries of DCL. (See Note 3.) The Company's 2016 minority investment in Group Nine Media and all related financial activity is included within the DCL issuer entity in the accompanying condensed consolidated financial statements. (See Note 4.) 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. 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 December 31, 2018 (in millions) Discovery Scripps Inc. DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 315 $ — $ 61 $ 475 $ 135 $ — $ 986 Receivables, net — — — 405 1,305 910 — 2,620 Content rights, net — — — 1 250 62 — 313 Prepaid expenses and other current assets 21 18 22 49 134 68 — 312 Inter-company trade receivables, net — — — 151 — — (151 ) — Total current assets 21 333 22 667 2,164 1,175 (151 ) 4,231 Investment in and advances to subsidiaries 8,367 13,248 — 6,290 — — (27,905 ) — Noncurrent content rights, net — — — 607 1,501 961 — 3,069 Goodwill — — — 3,678 3,298 6,030 — 13,006 Intangible assets, net — — — 246 1,261 8,167 — 9,674 Equity method investments, including note receivable — 94 — 23 291 527 — 935 Other noncurrent assets, including property and equipment, net — 35 20 537 607 456 (20 ) 1,635 Total assets $ 8,388 $ 13,710 $ 42 $ 12,048 $ 9,122 $ 17,316 $ (28,076 ) $ 32,550 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 106 $ — $ 1,709 $ 35 $ 10 $ — $ 1,860 Other current liabilities — 30 — 394 1,243 470 — 2,137 Inter-company trade payables, net — — — — 151 — (151 ) — Total current liabilities — 136 — 2,103 1,429 480 (151 ) 3,997 Noncurrent portion of debt — 134 — 14,641 375 35 — 15,185 Negative carrying amount in subsidiaries, net — — 5,183 — — 3,427 (8,610 ) — Other noncurrent liabilities 2 56 — 487 613 1,713 (20 ) 2,851 Total liabilities 2 326 5,183 17,231 2,417 5,655 (8,781 ) 22,033 Redeemable noncontrolling interests — — — — 415 — — 415 Total Discovery, Inc. stockholders’ equity 8,386 13,384 (5,141 ) (5,183 ) 6,290 11,661 (21,011 ) 8,386 Noncontrolling interests — — — — — — 1,716 1,716 Total equity 8,386 13,384 (5,141 ) (5,183 ) 6,290 11,661 (19,295 ) 10,102 Total liabilities and equity $ 8,388 $ 13,710 $ 42 $ 12,048 $ 9,122 $ 17,316 $ (28,076 ) $ 32,550 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 — — 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 For the Year Ended December 31, 2018 (in millions) Discovery Scripps Inc. DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 1,950 $ 5,597 $ 3,047 $ (41 ) $ 10,553 Costs of revenues, excluding depreciation and amortization — — — 445 2,558 956 (24 ) 3,935 Selling, general and administrative 41 — — 315 1,694 587 (17 ) 2,620 Depreciation and amortization — 1 — 53 365 979 — 1,398 Restructuring and other charges 8 — — 118 407 217 — 750 Gain on disposition — — — — (84 ) — — (84 ) Total costs and expenses 49 1 — 931 4,940 2,739 (41 ) 8,619 Operating (loss) income (49 ) (1 ) — 1,019 657 308 — 1,934 Equity in earnings of subsidiaries 637 198 473 209 — 315 (1,832 ) — Interest expense, net — (6 ) — (693 ) (29 ) (1 ) — (729 ) Income (loss) from equity investees, net — — — 4 (91 ) 24 — (63 ) Other (expense) income, net (5 ) 12 — 71 (145 ) (53 ) — (120 ) Income before income taxes 583 203 473 610 392 593 (1,832 ) 1,022 Income tax benefit (expense) 11 — — (137 ) (163 ) (52 ) — (341 ) Net income 594 203 473 473 229 541 (1,832 ) 681 Net income attributable to noncontrolling interests — — — — — — (67 ) (67 ) Net income attributable to redeemable noncontrolling interests — — — — — — (20 ) (20 ) Net income available to Discovery, Inc. $ 594 $ 203 $ 473 $ 473 $ 229 $ 541 $ (1,919 ) $ 594 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Year Ended December 31, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ 1,988 $ 4,897 $ — $ (12 ) $ 6,873 Costs of revenues, excluding depreciation and amortization — — 467 2,191 — (2 ) 2,656 Selling, general and administrative 53 — 309 1,416 — (10 ) 1,768 Impairment of goodwill — — — 1,327 — — 1,327 Depreciation and amortization — — 42 288 — — 330 Restructuring and other charges — — 35 40 — — 75 Loss on disposition — — — 4 — — 4 Total costs and expenses 53 — 853 5,266 — (12 ) 6,160 Operating (loss) income (53 ) — 1,135 (369 ) — — 713 Equity in loss of subsidiaries (288 ) (288 ) (541 ) — (192 ) 1,309 — Interest expense, net — — (448 ) (27 ) — — (475 ) Loss on extinguishment of debt — — (54 ) — — — (54 ) Loss from equity method investees, net — — (3 ) (208 ) — — (211 ) Other (expense) income, net — — (204 ) 94 — — (110 ) Loss before income taxes (341 ) (288 ) (115 ) (510 ) (192 ) 1,309 (137 ) Income tax benefit (expense) 4 — (173 ) (7 ) — — (176 ) Net loss (337 ) (288 ) (288 ) (517 ) (192 ) 1,309 (313 ) Net income attributable to redeemable noncontrolling interests — — — — — (24 ) (24 ) Net loss available to Discovery, Inc. $ (337 ) $ (288 ) $ (288 ) $ (517 ) $ (192 ) $ 1,285 $ (337 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Year Ended December 31, 2016 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ 1,963 $ 4,547 $ — $ (13 ) $ 6,497 Costs of revenues, excluding depreciation and amortization — — 466 1,970 — (4 ) 2,432 Selling, general and administrative 14 — 292 1,393 — (9 ) 1,690 Depreciation and amortization — — 41 281 — — 322 Restructuring and other charges — — 28 30 — — 58 Gain on disposition — — (50 ) (13 ) — — (63 ) Total costs and expenses 14 — 777 3,661 — (13 ) 4,439 Operating (loss) income (14 ) — 1,186 886 — — 2,058 Equity in earnings of subsidiaries 1,203 1,203 602 — 802 (3,810 ) — Interest expense, net — — (332 ) (21 ) — — (353 ) Loss from equity method investees, net — — (3 ) (35 ) — — (38 ) Other income (expense), net — — 40 (36 ) — — 4 Income before income taxes 1,189 1,203 1,493 794 802 (3,810 ) 1,671 Income tax benefit (expense) 5 — (290 ) (168 ) — — (453 ) Net income 1,194 1,203 1,203 626 802 (3,810 ) 1,218 Net income attributable to noncontrolling interests — — — — — (1 ) (1 ) Net income attributable to redeemable noncontrolling interests — — — — — (23 ) (23 ) Net income available to Discovery, Inc. $ 1,194 $ 1,203 $ 1,203 $ 626 $ 802 $ (3,834 ) $ 1,194 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2018 (in millions) Discovery Scripps Inc. DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 594 $ 203 $ 473 $ 473 $ 229 $ 541 $ (1,832 ) $ 681 Other comprehensive (loss) income, net of tax: Currency translation (189 ) (204 ) 15 15 (15 ) (194 ) 383 (189 ) Pension and SERP 3 3 — — — — (3 ) 3 Derivatives 12 — 12 12 12 8 (44 ) 12 Comprehensive income 420 2 500 500 226 355 (1,496 ) 507 Comprehensive income attributable to noncontrolling interests — — — — — — (67 ) (67 ) Comprehensive income attributable to redeemable noncontrolling interests — — — — — — (20 ) (20 ) Comprehensive income attributable to Discovery, Inc. $ 420 $ 2 $ 500 $ 500 $ 226 $ 355 $ (1,583 ) $ 420 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS For the Year Ended December 31, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net loss $ (337 ) $ (288 ) $ (288 ) $ (517 ) $ (192 ) $ 1,309 $ (313 ) Other comprehensive (loss) income, net of tax: Currency translation 183 183 183 186 122 (674 ) 183 Available-for-sale securities 15 15 15 15 10 (55 ) 15 Derivatives (20 ) (20 ) (20 ) (9 ) (13 ) 62 (20 ) Comprehensive loss (159 ) (110 ) (110 ) (325 ) (73 ) 642 (135 ) Comprehensive income attributable to redeemable noncontrolling interests (1 ) (1 ) (1 ) (1 ) (1 ) (20 ) (25 ) Comprehensive loss attributable to Discovery, Inc. $ (160 ) $ (111 ) $ (111 ) $ (326 ) $ (74 ) $ 622 $ (160 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2016 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 1,194 $ 1,203 $ 1,203 $ 626 $ 802 $ (3,810 ) $ 1,218 Other comprehensive (loss) income, net of tax: Currency translation (191 ) (191 ) (191 ) (190 ) (127 ) 699 (191 ) Available-for-sale securities 38 38 38 38 25 (139 ) 38 Derivatives 24 24 24 22 16 (86 ) 24 Comprehensive income 1,065 1,074 1,074 496 716 (3,336 ) 1,089 Comprehensive income attributable to noncontrolling interests — — — — — (1 ) (1 ) Comprehensive income attributable to redeemable noncontrolling interests (23 ) (23 ) (23 ) (23 ) (15 ) 84 (23 ) Comprehensive income attributable to Discovery, Inc. $ 1,042 $ 1,051 $ 1,051 $ 473 $ 701 $ (3,253 ) $ 1,065 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2018 (in millions) Discovery Scripps Inc. DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (15 ) $ (85 ) $ 11 $ (111 ) $ 1,543 $ 1,233 $ — $ 2,576 Investing Activities Purchases of property and equipment — — — (24 ) (94 ) (29 ) — (147 ) (Payments) receipts for investments, net — — — (10 ) (59 ) 8 — (61 ) Business (acquisitions) dispositions, net of cash (acquired) disposed (8,714 ) 54 — — — 95 — (8,565 ) Payments for derivative instruments — — — — (2 ) — — (2 ) Proceeds from dispositions, net of cash disposed — — — — 107 — — 107 Distributions from equity method investees — — — — 1 — — 1 Proceeds from sale of assets — — — — 68 — — 68 Intercompany distributions, and other investing activities, net — 11 — 12 4 (9 ) (12 ) 6 Cash (used in) provided by investing activities (8,714 ) 65 — (22 ) 25 65 (12 ) (8,593 ) Financing Activities Commercial paper repayments, net — — — (5 ) — — — (5 ) Principal repayment of revolving credit facility — — — — (200 ) — — (200 ) Borrowings under term loan facilities — — — 2,000 — — — 2,000 Principal repayments of term loans — — — (2,000 ) — — — (2,000 ) Principal repayment of long term debt — — — (16 ) — — — (16 ) Principal repayments of capital lease obligations — — — (10 ) (28 ) (12 ) — (50 ) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — — (26 ) (50 ) — (76 ) Share-based plan proceeds, net 51 — — — 3 — — 54 Borrowings under program financing line of credit — — — 22 — — — 22 Inter-company contributions and other financing activities, net 8,678 335 (11 ) (6,597 ) (1,336 ) (1,093 ) 12 (12 ) Cash provided by (used in) financing activities 8,729 335 (11 ) (6,606 ) (1,587 ) (1,155 ) 12 (283 ) Effect of exchange rate changes on cash and cash equivalents — — — — (15 ) (8 ) — (23 ) Net change in cash and cash equivalents — 315 — (6,739 ) (34 ) 135 — (6,323 ) Cash and cash equivalents, beginning of period — — — 6,800 509 — — 7,309 Cash and cash equivalents, end of period $ — $ 315 $ — $ 61 $ 475 $ 135 $ — $ 986 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (3 ) $ 3 $ 476 $ 1,153 $ — $ — $ 1,629 Investing Activities Business acquisitions, net of cash acquired — — — (60 ) — — (60 ) Payments for investments, net — — (45 ) (399 ) — — (444 ) Proceeds from dispositions, net of cash disposed — — — 29 — — 29 Purchases of property and equipment — — (43 ) (92 ) — — (135 ) Distributions from equity method investees — — — 77 — — 77 Payments (receipts) for derivative instruments, net — — (111 ) 10 — — (101 ) Other investing activities, net — — (1 ) 2 — — 1 Inter-company contributions (distributions) — — 42 — — (42 ) — Cash used in investing activities — — (158 ) (433 ) — (42 ) (633 ) Financing Activities Commercial paper repayments, net — — (48 ) — — — (48 ) Borrowings under revolving credit facility — — 350 — — 350 Principal repayments of revolving credit facility — — (475 ) — — (475 ) Borrowings from debt, net of discount and including premiums to par value — — 7,488 — — — 7,488 Principal repayments of debt, including discount payment and premiums to par value — — (650 ) — — — (650 ) Payments for bridge financing commitment fees — — (40 ) — — — (40 ) Principal repayments of capital lease obligations — — (7 ) (26 ) — — (33 ) Repurchases of stock (603 ) — — — — — (603 ) Cash settlement of common stock repurchase contracts 58 — — — — — 58 Distributions to redeemable noncontrolling interests — — — (30 ) — — (30 ) Share-based plan proceeds, net 16 — — — — — 16 Inter-company distributions — — — (42 ) — 42 — Inter-company contributions and other financing activities, net 532 (3 ) (156 ) (455 ) — — (82 ) Cash provided by (used in) financing activities 3 (3 ) 6,462 (553 ) — 42 5,951 Effect of exchange rate changes on cash and cash equivalents — — — 62 — — 62 Net change in cash and cash equivalents — — 6,780 229 — — 7,009 Cash and cash equivalents, beginning of period — — 20 280 — — 300 Cash and cash equivalents, end of period $ — $ — $ 6,800 $ 509 $ — $ — $ 7,309 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2016 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (20 ) $ (9 ) $ 249 $ 1,160 $ — $ — $ 1,380 Investing Activities Payments for investments, net — — (124 ) (148 ) — — (272 ) Proceeds from dispositions, net of cash disposed — — — 19 — — 19 Purchases of property and equipment — — (18 ) (70 ) — — (88 ) Distributions from equity method investees — — — 87 — — 87 Inter-company distributions — — 30 — — (30 ) — Other investing activities, net — — — (2 ) — — (2 ) Cash used in investing activities — — (112 ) (114 ) — (30 ) (256 ) Financing Activities Commercial paper repayments, net — — (45 ) — — — (45 ) Borrowings under revolving credit facility — — 350 263 — — 613 Principal repayments of revolving credit facility — — (225 ) (610 ) — — (835 ) Borrowings from debt, net of discount and including premiums — — 498 — — — 498 Principal repayments of capital lease obligations — — (5 ) (23 ) — — (28 ) Repurchases of stock (1,374 ) — — — — — (1,374 ) Prepayments of common stock repurchase contracts (57 ) — — — — — (57 ) Distributions to redeemable noncontrolling interests — — — (22 ) — — (22 ) Share-based plan proceeds, net 39 — — — — — 39 Hedge of borrowings from debt instruments — — 40 — — — 40 Intercompany distributions — — — (30 ) — 30 — Inter-company contributions and other financing activities, net 1,412 9 (733 ) (701 ) — — (13 ) Cash provided by (used in) financing activities 20 9 (120 ) (1,123 ) — 30 (1,184 ) Effect of exchange rate changes on cash and cash equivalents — — — (30 ) — — (30 ) Net change in cash and cash equivalents — — 17 (107 ) — — (90 ) Cash and cash equivalents, beginning of period — — 3 387 — — 390 Cash and cash equivalents, end of period $ — $ — $ 20 $ 280 $ — $ — $ 300 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Accounting and Reporting Pronouncements Adopted | Accounting and Reporting Pronouncements Adopted Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, which includes significant amendments that 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 early adopted the pronouncement on July 1, 2018. As a result, the Company changed the method by which it assesses effectiveness for net investment hedges from the forward-method to the spot-method. The Company believes the spot method better matches the spot rate changes of the net investment. Previous net losses of $87 million incurred under the forward method related to net investment hedges will remain in other comprehensive loss under the currency translation adjustments component and will be reclassified to earnings when the net investment is sold or liquidated. The adoption of ASU 2017-12 did not result in a material impact to our consolidated results of operations; however, the Company has expanded its disclosures of its derivative activities in Note 10. Recognition and Measurement of Financial Instruments On January 1, 2018, the Company adopted ASU 2016-01 and ASU 2018-03, which enhance the reporting model for financial instruments. The 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 4 and Note 12.) • Upon adoption of ASU 2016-01, the Lionsgate Collar, as defined in Note 4, no longer receives the hedge accounting designation. There is no change to the manner in which movements in fair value of these instruments are reflected in the financial statements, as gains and losses will continue to be recorded as a component of other (expense) income, net on the consolidated statements of operations. (See Note 10.) • 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) income, net. (See Note 4 and Note 5.) 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 ("Topic 606"), which updates numerous requirements in U.S. GAAP, eliminates industry-specific guidance, and provides companies with a single 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 by adding ASC Subtopic 340-40, Other Assets and Deferred Costs: Contracts with Customers, and requiring 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 Topic 606 using the modified retrospective method applied to contracts 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. Under Topic 605, revenue is recognized when persuasive evidence of a sales arrangement exists, services are rendered or delivery occurs, the sales price is fixed or determinable and collectability is reasonably assured. 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. 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 the Education Business, which was disposed of as of April 30, 2018. (See Note 3.) For the year ended December 31, 2018 , the total amortization of capitalized sales commissions recorded as a component of cost of revenues was immaterial. The impact to revenue and costs of revenue as a result of applying Topic 606 was immaterial for the year ended December 31, 2018 . (See Note 14.) Income Taxes In October 2016, the FASB issued ASU 2016-16, which 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 In January 2017, the FASB issued ASU 2017-01, which 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. The Company adopted the new standard effective January 1, 2018, and there was no material impact on the consolidated financial statements upon adoption. Compensation - Retirement Benefits In March 2017, the FASB issued ASU 2017-07, 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 nonqualified 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 16.) |
Accounting and Reporting Pronouncements Not Yet Adopted | Accounting and Reporting Pronouncements Not Yet Adopted Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, 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 the consolidated financial statements. Goodwill In January 2017, the FASB issued ASU 2017-04, which 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. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-03, which changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and that requires entities to use a new, forward-looking “expected loss” model that is expected to generally result in the earlier recognition of allowances for losses. The guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those years, but early adoption is permitted. The Company is evaluating the effect that the pronouncement will have on the Company's consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, which will require lessees to recognize almost all of their leases on the balance sheet by recording a right-of-use asset and liability. The guidance also requires improved disclosures to help users of the financial statements better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is 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 the effective date without applying the provisions of the new guidance to comparative periods presented. During the year ended December 31, 2018 , the Company determined a number of adoption elections. The Company will elect to apply the guidance at the effective date without recasting the comparative periods presented. Additionally, the Company will elect to apply practical expedients that will allow it to not reassess 1) whether any expired or existing contracts previously assessed as not containing leases are, or contain, leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. The Company will also elect to not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component will be accounted for as a single lease component. The Company will not elect to apply the practical expedient to use hindsight in determining the lease term and in assessing the right-of-use assets for impairment. Additionally, the Company will not elect to apply the short-term lease scope exemption. The Company continues to evaluate the impact that the pronouncement will have on the Company's consolidated financial statements. It is expected that assets and liabilities will increase materially when operating leases are recorded on the consolidated balance sheets under the new standard. The Company's existing operating lease obligations are included in Note 22. The pattern of expense recognition within the consolidated statements of operations is not expected to change significantly. The adoption is not expected to have an impact on the Company's ability to meet its financial covenants. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“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 evaluations could change. These estimates are sometimes complex, sensitive to changes in assumptions and require fair value determinations using Level 3 fair value measurements. Actual results may differ materially from those estimates. 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. |
Consolidation | Consolidation The Company has ownership and other interests in various entities, including corporations, partnerships, and limited liability companies. For each such entity, 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 initially determines whether the entity is a VIE and, if so, whether it is the primary beneficiary of the VIE. An entity is generally a VIE if it meets any of the following criteria: (i) the entity has insufficient equity to finance its activities without additional subordinated financial support from other parties, (ii) the equity investors cannot make significant decisions about the entity’s operations, or (iii) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity or receive the expected returns of the entity and substantially all of the entity’s activities involve or are conducted on behalf of the investor with disproportionately few voting rights. The Company consolidates VIEs for which it is the primary beneficiary, regardless of its ownership or voting interests. The primary beneficiary is the party involved with the VIE that (i) has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Upon inception of a variable interest or the occurrence of a reconsideration event, the Company makes judgments in determining whether entities in which it invests are VIEs. If so, the Company makes judgments to determine whether it is the primary beneficiary and is thus required to consolidate the entity. If it is concluded that an entity is not a VIE, then the Company considers its proportional voting interests in the entity. The Company consolidates majority-owned subsidiaries in which a controlling financial interest is maintained. A controlling financial interest is determined by majority ownership and the absence of significant third-party participating rights. Ownership interests in entities for which the Company has significant influence that are not consolidated under the Company’s consolidation policy are accounted for as equity method investments. Related party transactions between the Company and its equity method investees have not been eliminated. (See Note 21.) |
Investments | Investments The Company holds investments in equity method investees and equity investments with and without readily determinable fair value. Investments in equity method investees are those for which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary. Significant influence typically exists if the Company has a 20% to 50% ownership interest in the venture unless persuasive evidence to the contrary exists. Under this method of accounting, the Company typically records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances. For the Company's equity method investments in renewable energy limited liability companies where the capital structure of the equity investment results in different liquidation rights and priorities than what is reflected by the underlying percentage ownership interests, the Company's proportionate share of net earnings is accounted for using the Hypothetical Liquidation at Book Value ("HLBV") methodology available under the equity method of accounting. When applying HLBV, the Company determines the amount that would be received if the investment were to liquidate all of its assets and distribute the resulting cash to the investors based on contractually defined liquidation priorities. The change in the Company's claim on the investee's book value in accordance with GAAP at the beginning and the end of the reporting period, after adjusting for any contributions or distributions, is the Company's share of the earnings or losses for the period. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. (See "Asset Impairment Analysis" below.) Equity investments without readily determinable fair value include ownership rights that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence and these investments do not have readily determinable fair values. Equity investments without readily determinable fair value are recorded at cost, less any impairment, and adjusted for subsequent observable price changes as of the date that an observable transaction takes place. Investments in entities or other securities in which the Company has no control or significant influence, is not the primary beneficiary, and have a readily determinable fair value are recorded at fair value based on quoted market prices and are classified as equity securities or equity investments with readily determinable fair value. For equity securities with readily determinable fair value, realized gains and losses are recorded in other (expense) income, net. (See Note 4.) |
Foreign Currency | Foreign Currency The reporting currency of the Company is the U.S. dollar. The functional currency of most of the Company’s international subsidiaries is the local currency. Assets and liabilities, including inter-company balances for which settlement is anticipated in the foreseeable future, denominated in foreign currencies are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded in accumulated other comprehensive income. Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the consolidated balance sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses are included in other (expense) income, net , and totaled a loss of $ 93 million , a loss of $ 83 million , and a gain of $ 75 million for 2018 , 2017 and 2016 , respectively. Cash flows from the Company's operations in foreign countries are generally translated at the weighted average rate for the applicable period in the consolidated statements of cash flows. The impacts of material transactions are recorded at the applicable spot rates as of the transaction date in the consolidated statements of operations and cash flows. The effects of exchange rates on cash balances held in foreign currencies are separately reported in the Company's consolidated statements of cash flows. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of 90 days or less. |
Receivables | Receivables Receivables include amounts billed and currently due from customers and are presented net of an estimate for uncollectible accounts. The Company evaluates outstanding receivables to assess collectability. In performing this evaluation, the Company analyzes market trends, economic conditions, the aging of receivables and customer specific risks. Using this information, the Company reserves an amount that it estimates may not be collected. The Company does not require collateral with respect to trade receivables. |
Content Rights | Content Rights Content rights principally consist of television series, specials, films and sporting events. Content aired on the Company’s television networks is sourced from a wide range of third-party producers, wholly-owned and equity method investee production studios and sports associations. Content is classified either as produced, coproduced or licensed. The Company owns most or all of the rights to produced content. The Company collaborates with third parties to finance and develop coproduced content, and it retains significant rights to exploit the programs. Licensed content is comprised of films or series that have been previously produced by third parties and the Company retains limited airing rights over a contractual term. Prepaid licensed content includes advance payments for rights to air sporting events that will take place in the future and advance payments for acquired films and television series. Costs of produced and coproduced content consist of development costs, acquired production costs, direct production costs, certain production overhead costs and participation costs. Costs incurred for produced and coproduced content are capitalized if the Company has previously generated revenues from similar content in established markets and the content will be used and revenues will be generated for a period of at least one year. The Company’s coproduction arrangements generally provide for the sharing of production costs. The Company records its costs but does not record the costs borne by the other party as the Company does not share any associated economics of exploitation. Program licenses typically have fixed terms and require payments during the term of the license. The cost of licensed content is capitalized when the license period for the programs has commenced and the programs are available for air or the Company has paid for the programs. The Company pays in advance of delivery for television series, specials, films and sports rights. Payments made in advance of when the right to air the content is received are recognized as in-production produced, coproduced content or prepaid licensed content. Content distribution, advertising, marketing, general and administrative costs are expensed as incurred. Content amortization expense for each period is recognized based on the revenue forecast model, which approximates the proportion that estimated distribution and advertising revenues for the current period represent in relation to the estimated remaining total lifetime revenues. Significant judgment is required to determine the useful lives of the Company’s content rights and the ultimate revenues to be derived from the exploitation of the individual content rights, which involves the use of significant estimates and assumptions with respect to the timing and frequency of forecasted future airings, the associated revenues to be derived from these airings, and revenues generated from service offerings other than traditional linear distribution. The Company annually, or on an as needed basis, prepares analyses to support its content amortization expense by network and by region. Critical assumptions used in determining content amortization include: (i) the grouping of content by network and or genre, (ii) the application of a quantitative revenue forecast model based on the adequacy of a network's historical data, (iii) determining the appropriate historical periods to utilize and the relative weighting of those historical periods in the revenue forecast model, (iv) assessing the accuracy of the Company's revenue forecasts and (v) incorporating secondary streams. The Company then considers the appropriate application of the quantitative assessment given forecasted content use, expected content investment and market trends. Content use and future revenues may differ from estimates based on changes in expectations related to market acceptance, network affiliate fee rates, advertising demand, the number of cable and satellite television subscribers receiving the Company’s networks, and program usage. Accordingly, the Company continually reviews revenue estimates and planned usage and revises its assumptions if necessary. As part of the Company's annual assessment in determining the film forecast model, the Company compares the calculated amortization rates to those that have been utilized during the year. If the calculated rates do not deviate materially from the applied amortization rates, no adjustment is recorded for the current year amortization expense. The Company allocates the cost of multi-year sports programming arrangements over the contract period to each event or season based on the estimated relative value of each event or season. The result of the revenue forecast model is either an accelerated method or a straight-line amortization method over the estimated useful lives of primarily three to four years for produced, coproduced and licensed content. Amortization of capitalized costs for produced and coproduced content begins when a program has been aired. Amortization of capitalized costs for licensed content commences when the license period begins and the program is available for use. Amortization of sports rights takes place when the content airs. Capitalized content costs are stated at the lower of cost less accumulated amortization or net realizable value. The Company periodically evaluates the net realizable value of content by considering expected future revenue generation. Estimates of future revenues consider historical airing patterns and future plans for airing content, including any changes in strategy. Given the significant estimates and judgments involved, actual demand or market conditions may be less favorable than those projected, requiring a write-down to net realizable value. Development costs for programs that the Company has determined will not be produced, are fully expensed in the period the determination is made. All produced and coproduced content is classified as long-term. The portion of the unamortized licensed content balance, including prepaid sports rights, that will be amortized within one year is classified as a current asset. (See Note 6.) |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and impairments. The cost of property and equipment acquired under capital lease arrangements represents the lesser of the present value of the minimum lease payments or the fair value of the leased asset as of the inception of the lease. The Company leases fixed assets and licenses software. Capitalized software costs are for internal use. Capitalization of software costs occurs during the application development stage. Software costs incurred during the preliminary project and post implementation stages are expensed as incurred. Repairs and maintenance expenditures that do not enhance the use or extend the life of property and equipment are expensed as incurred. Depreciation for most property and equipment is recognized using the straight-line method over the estimated useful lives of the assets, which is 15 to 39 years for buildings, three to five years for broadcast equipment, two to five years for capitalized software costs and three to five years for office equipment, furniture, fixtures and other property and equipment. Assets acquired under capital lease arrangements and leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the terms of the related leases, which is one to 15 years. Depreciation commences when property or equipment is ready for its intended use. |
Asset Impairment Analysis, Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets Goodwill is allocated to the Company's reporting units, which are its operating segments or one level below its operating segments. The Company evaluates goodwill and other indefinite-lived intangible assets for impairment annually as of November 30 and earlier if an event or other circumstance indicates that we may not recover the carrying value of the asset. If the Company believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit or other indefinite-lived intangible asset is greater than its carrying amount, the quantitative impairment test is not required. The Company performs a quantitative impairment test every three years, irrespective of the outcome of the Company's qualitative assessment. 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. Following a qualitative assessment indicating that it is not more likely than not that the fair value of the indefinite lived intangible asset exceeds its carrying amount, impairment of other intangible assets not subject to amortization involves a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Determining fair value requires the exercise of judgment about appropriate discount rates, perpetual growth rates and the amount and timing of expected future cash flows. (See Note 8.) |
Asset Impairment Analysis, Long-lived Assets | Long-lived Assets Long-lived assets such as amortizing trademarks, customer lists, other intangible assets, and property and equipment are not required to be tested for impairment annually. Instead, long-lived assets are tested for impairment whenever circumstances indicate that the carrying amount of the asset may not be recoverable, such as when the disposal of such assets is likely or there is an adverse change in the market involving the business employing the related assets. If an impairment analysis is required, the impairment test employed is based on whether the Company’s intent is to hold the asset for continued use or to hold the asset for sale. If the intent is to hold the asset for continued use, the impairment test first requires a comparison of undiscounted future cash flows to the carrying value of the asset. If the carrying value of the asset exceeds the undiscounted cash flows, the asset would not be deemed to be recoverable. Impairment would then be measured as the excess of the asset’s carrying value over its fair value. Fair value is typically determined by discounting the future cash flows associated with that asset. If the intent is to hold the asset for sale and certain other criteria are met, the impairment test involves comparing the asset’s carrying value to its fair value less costs to sell. To the extent the carrying value is greater than the asset’s fair value less costs to sell, an impairment loss is recognized in an amount equal to the difference. Significant judgments used for long-lived asset impairment assessments include identifying the appropriate asset groupings and primary assets within those groupings, determining whether events or circumstances indicate that the carrying amount of the asset may not be recoverable, determining the future cash flows for the assets involved and assumptions applied in determining fair value, which include reasonable discount rates, growth rates, market risk premiums and other assumptions about the economic environment. |
Asset Impairment Analysis, Equity Method Investments and Equity Investments Without Readily Determinable Fair Value | Equity Method Investments and Equity Investments Without Readily Determinable Fair Value Equity method investments are reviewed for indicators of other-than-temporary impairment on a quarterly basis. Equity method investments are written down to fair value if there is evidence of a loss in value that is other-than-temporary. The Company may estimate the fair value of its equity method investments by considering recent investee equity transactions, discounted cash flow analysis, recent operating results, comparable public company operating cash flow multiples and in certain situations, balance sheet liquidation values. If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether an other-than-temporary decline has occurred, such as: the length of the time and the extent to which the estimated fair value or market value has been below the carrying value, the financial condition and the near-term prospects of the investee, the intent and ability of the Company to retain its investment in the investee for a period of time sufficient to allow for any anticipated recovery in market value and general market conditions. The estimation of fair value and whether an other-than-temporary impairment has occurred requires the application of significant judgment and future results may vary from current assumptions. If declines in the value of the equity method investments are determined to be other-than-temporary, a loss is recorded in earnings in the current period as a component of loss from equity investees, net on the consolidated statements of operations. For equity investments without readily determinable fair value, the Company has elected to apply the measurement alternative. 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 performs a qualitative assessment each reporting period to determine if an investment is impaired. If the qualitative assessment indicates that an investment is impaired, the Company is required to estimate the fair value of the investment and recognize an impairment loss equal to the difference between the fair value and carrying value in the current period as a component of other (expense) income, net . (See Note 4.) |
Derivative Instruments | Derivative Instruments The Company uses derivative financial instruments to modify its exposure to market risks from changes in foreign currency exchange rates, interest rates and from market volatility related to certain equity investments measured at fair value. At the inception of a derivative contract, the Company designates the derivative as one of four types based on the Company's intentions and expectations as to the likely effectiveness as a hedge. These four types are: (i) 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"), (ii) a hedge of net investments in foreign operations ("net investment hedge"), (iii) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), or (iv) an instrument with no hedging designation. (See Note 10.) Cash Flow Hedges As a result of ASU 2017-12, for foreign exchange forward contracts accounted for as cash flow hedges, the ineffective portion (if any) will not be separately recorded, as the entire change in the fair value of the forward contract will be recorded in other comprehensive income (loss) and reclassified into the statement 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. Net Investment Hedges Upon adoption of 2017-12 for those derivative instruments designated as net investment hedges, the Company changed the method by which it assesses their effectiveness from the forward-method to the spot-method. The entire change in the fair value of the derivatives is initially recorded in the currency translation adjustment component of other comprehensive income (loss) . While the change in fair value attributable to hedge effectiveness remains in accumulated other comprehensive loss until the net investment is sold or liquidated, the change in fair value attributable to components excluded from the assessment of hedge effectiveness (e.g., forward points, cross currency basis, etc.) is reflected as a component of interest expense, net in the current period. Fair Value Hedges For those derivative instruments designated as fair value hedges, the changes in the fair value of the derivative instruments, including offsetting changes in fair value of the hedged items and amounts excluded from the assessment of effectiveness are recorded in other (expense) income, net . No Hedging Designation The Company may also enter into derivative instruments that are not designated as hedges and do not qualify for hedge accounting. These contracts are intended to mitigate economic exposures of the Company. The changes in fair value of derivatives not designated as hedges and the ineffective portion of derivatives designated as hedging instruments are immediately recorded in other (expense) income, net . Financial Statement Presentation The Company records all unsettled derivative contracts at their gross fair values on the consolidated balance sheets. (See Note 5.) 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. The cash flows from the designated 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. 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 from the hedged item. For example, the cash paid or received to settle the effective portion of foreign exchange derivatives intended to hedge distribution revenue earned during the year ended December 31, 2018 is reported as an operating activity in the consolidated statements of cash flows consistent with the classification of cash received from customers. Also, the cash flows related to our interest rate contracts used to hedge the pricing for certain senior notes are reported as a financing activity in the consolidated statements of cash flows consistent with the cash proceeds from our debt offerings. The cash flows from the ineffective portion of derivative instruments used as hedges, periodic settlement of interest on cross-currency swaps, and derivative contracts not designated as hedges are reported as investing activities in the consolidated statements of cash flows. |
Treasury Stock | Treasury Stock When stock is acquired for purposes other than formal or constructive retirement, the purchase price of the acquired stock is recorded in a separate treasury stock account, which is separately reported as a reduction of equity. When stock is retired or purchased for formal or constructive retirement, the purchase price is initially recorded as a reduction to the par value of the shares repurchased, with any excess purchase price over par value recorded as a reduction to additional paid-in capital related to the series of shares repurchased and any remainder excess purchase price recorded as a reduction to retained earnings. If the purchase price exceeds the amounts allocated to par value and additional paid-in capital related to the series of shares repurchased and retained earnings, the remainder is allocated to additional paid-in capital related to other series of shares. Common Stock Repurchase Contracts Under common stock repurchase contracts, the Company makes up front cash payments for the future settlement of the contract in either shares or in cash based on the Company's Series C common stock price at settlement in relation to the strike price of the contract. If the Company's Series C common stock price is below the strike price at expiry, the Company receives a predetermined number of its Series C common stock. If the Company's Series C common stock price is above the strike price at expiry, the Company can elect to settle the transaction in either cash or the equivalent value in shares of Series C common stock at the then current market price upon settlement, based on the notional value of the repurchase contract. The contracts represent a hybrid instrument consisting of a debt instrument and an embedded equity-linked derivative that does not require bifurcation because it is linked to the Company’s own stock. The Company accounts for these contracts as equity transactions. Prepayments are recorded as a reduction in additional paid-in capital. If the contract settles in shares of Series C common stock, that amount will be reclassified to treasury stock. If the contract settles in cash, the cash receipt will be recorded as an increase to additional paid-in capital. |
Revenue Recognition | Revenue Recognition The Company generates revenues principally from: (i) distribution revenues from 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 from advertising sold on its television networks and websites and (iii) other revenue related to several items including: (a) unbundled rights to sales of network content, including sports rights, (b) production studios content development and services, (c) the licensing of the Company's brands for consumer products and (d) affiliate and advertising sales representation services. 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 royalties via 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. Although the delivery of linear feeds and digital direct-to-consumer products, such as video-on-demand (“VOD”) and digital distribution arrangements, are considered distinct performance obligations, on demand offerings generally match the programs that are airing on the linear network. Therefore, the Company recognizes revenue for licensing arrangements as the license fee is earned and based on continuous delivery for fixed fee contracts. 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. Advertising Advertising revenues are principally generated from the sale of 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. The Company provides a service to deliver an advertising campaign which is satisfied by the provision of a minimum number of advertising spots in exchange for a fixed fee over a contract period of one year or less. The Company delivers spots in accordance with these contracts during a variety of day parts and programs. In the agreements governing these advertising campaigns, the Company has also promised to deliver to its customers a guaranteed minimum number of viewers (“impressions”) on a specific television network within a particular demographic (e.g. men aged 18-35). These advertising campaigns are considered to represent a single, distinct performance obligation. 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, and invoiced advertising revenue receivables may exceed the value of the audience delivery. As such, revenues are deferred until the guaranteed audience level is delivered or the rights associated with the guarantee lapse, which is less than one year. Audience guarantees are initially developed internally, based on planned programming, historical audience levels, the success of pilot programs, and market trends. 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 previously reported estimates have not been material. For contracts without an audience guarantee, advertising revenues are recognized as each spot airs. 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 its relative standalone selling price. Advertising revenues from digital platforms are recognized as impressions are delivered or the services are performed. Other 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. Royalties from brand licensing arrangements are earned as products are sold by the licensee. Affiliate and ad sales representation services are recognized as services are provided. Multiple Performance Obligations Contracts with customers may include multiple distinct performance obligations. For example, 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 contracts, the contract value is allocated to individual performance obligations and recorded as revenue when each performance obligation has been satisfied and value has been transferred to the customer. Distribution contracts also include multiple performance obligations. The Company also enters into certain distribution contracts that include promises to deliver content libraries. There are generally two types of such arrangements: 1) content licensing arrangements that include subscription video on demand (“SVOD”) licensing arrangements and 2) digital direct-to-consumer content (i.e., VOD) which includes a performance obligation within our linear distribution arrangements. These contracts vary by customer and in certain instances include a promise by the Company to deliver existing content and new content. For SVOD arrangements, revenue is allocated to each performance obligation based on that performance obligation's relative standalone selling price, which is determined based on the cost plus an expected margin. In the case of VOD and digital direct-to-consumer content, content is regularly refreshed over the term of the agreement, as new titles are added and older titles are removed. Consequently, satisfaction of the performance obligations generally occurs in the same pattern as the delivery of 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 prior to the sale of the Education Business in 2018, 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. (See Note 14.) |
Share-Based Compensation Expense | Share-Based Compensation Expense The Company has incentive plans under which performance-based restricted stock units (“PRSUs”), service-based restricted stock units (“RSUs”), stock options, and stock appreciation rights (“SARs”) are issued. Vesting for certain PRSUs is subject to satisfying objective operating performance conditions, while vesting for other PRSUs is based on the achievement of a combination of objective and subjective operating performance conditions. Compensation expense for PRSUs that vest based on achieving objective operating performance conditions is measured based on the fair value of the Company’s Series A and C common stock on the date of grant less actual forfeitures. Compensation expense for PRSUs that vest based on achieving subjective operating performance conditions or in situations where the executive is able to withhold taxes in excess of the minimum statutory requirement, is remeasured at the fair value of the Company’s Series A and Series C common stock, as applicable, less actual forfeitures each reporting period until the date of conversion. Compensation expense for all PRSUs is recognized ratably, following a graded vesting pattern during the vesting period only when it is probable that the operating performance conditions will be achieved. The Company records a cumulative adjustment to compensation expense for PRSUs if there is a change in the determination of whether or not it is probable the operating performance conditions will be achieved. The Company measures the cost of employee services received in exchange for RSUs based on the fair value of the Company’s Series A common stock on the date of grant less actual forfeitures. Compensation expense for RSUs is recognized ratably during the vesting period. Compensation expense for stock options is attributed to expense over the vesting period based on the fair value on the date of grant less actual forfeitures. Compensation expense for stock options is recognized ratably during the vesting period. The Company measures the cost of employee services received in exchange for SARs based on the fair value of the award less actual forfeitures. Because certain SARs are cash-settled, the Company remeasures the fair value of these awards each reporting period until settlement. Compensation expense, including changes in fair value, for SARs is recognized during the vesting period in proportion to the requisite service that has been rendered as of the reporting date. For awards with graded vesting, the Company measures fair value and records compensation expense separately for each vesting tranche. The fair values of SARs and stock options are estimated using the Black-Scholes option-pricing model. Because the Black-Scholes option-pricing model requires the use of subjective assumptions, changes in these assumptions can materially affect the fair value of awards. For SARs, the expected term is the period from the grant date to the end of the contractual term of the award unless the terms of the award allow for cash-settlement automatically on the date the awards vest, in which case the vesting date is used. For stock options the simplified method is utilized to calculate the expected term, since the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The simplified method considers the period from the date of grant through the mid-point between the vesting date and the end of the contractual term of the award. Expected volatility is based on a combination of implied volatilities from traded options on the Company’s common stock and historical realized volatility of the Company’s common stock. The dividend yield is assumed to be zero because the Company has no history of paying cash dividends and no present intention to pay dividends. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of the award. The Employee Stock Purchase Plan (the “ESPP”) enables eligible employees to purchase shares of the Company’s common stock through payroll deductions or other permitted means. The Company recognizes the fair value of the discount associated with shares purchased under the plan as share-based compensation expense. Share-based compensation expense is recorded as a component of selling, general and administrative expense. The Company classifies the intrinsic value of SARs that are vested or will become vested within one year as a current liability. Excess tax benefits realized from the exercise of stock options and vested RSUs, PRSUs and the ESPP are reported as cash inflows from operating activities on the consolidated statements of cash flows. |
Advertising Costs | Advertising Costs Advertising costs are expensed as promotional services are delivered in selling, general and administrative expenses. Advertising costs paid to third parties totaled $ 355 million , $ 162 million and $ 166 million for 2018 , 2017 and 2016 , respectively. |
Income Taxes | Income Taxes Income taxes are recorded using the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred taxes are measured using rates the Company expects to apply to taxable income in years in which those temporary differences are expected to reverse. A valuation allowance is provided for deferred tax assets if it is more likely than not such assets will be unrealized. The Company also engages in transactions that make the Company eligible for federal investment tax credits. The Company accounts for federal investment tax credits under the flow-through method, under which the tax benefit generated from an investment tax credit is recorded in the period the credit is generated. From time to time, the Company engages in transactions in which the tax consequences may be uncertain. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the Company's tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. In determining the Company's tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless the Company determines that such positions are more likely than not to be sustained upon examination based on their technical merits, including the resolution of any appeals or litigation processes. The Company includes interest and where appropriate, penalties, in its tax reserves. There is significant judgment involved in determining the amount of reserve and whether positions taken on the Company's tax returns are more likely than not to be sustained, which involve the use of significant estimates and assumptions with respect to the potential outcome of positions taken on tax returns that may be reviewed by tax authorities. The Company adjusts its tax reserve estimates periodically because of ongoing examinations by, and settlements with, various taxing authorities, as well as changes in tax laws, regulations and interpretations. The Company has elected to treat tax on GILTI income as a period cost. |
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 10 largest distributors. For the International Networks segment, approximately 39% of distribution revenue comes from the 10 largest distributors. Agreements in place with the 10 largest cable and satellite operators with the U.S. Networks and International Networks expire at various times from 2019 through 2023 . 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 2018 , 2017 or 2016 . As of December 31, 2018 and 2017 , the Company’s trade receivables do 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. Additionally, the Company has cash and cash equivalents held by its foreign subsidiaries. Under the TCJA, the Company was subjected to U.S. taxes for the deemed repatriation of certain cash balances held by foreign corporations. The Company continues 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 December 31, 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 through the evaluation and monitoring of 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 hedge of certain investments classified as available-for-sale securities, the Company has pledged shares as collateral to the derivative counterparty. (See Note 5.) 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 December 31, 2018 , no collateral has been posted by either party under these arrangements. As of December 31, 2018 , our exposure to counterparty credit risk included derivative assets with an aggregate fair value of $107 million . (See Note 10.) |
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 income (loss) ; 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. (See Note 19.) |
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 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. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 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, 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 (9 ) 412 Content rights 1,088 — 1,088 Property and equipment 315 — 315 Goodwill 6,003 118 6,121 Intangible assets 9,175 — 9,175 Equity method investments, including note receivable 870 (157 ) 713 Other noncurrent assets 111 3 114 Current liabilities assumed (494 ) (105 ) (599 ) Debt assumed (2,481 ) — (2,481 ) Deferred income taxes (1,695 ) 93 (1,602 ) Other noncurrent liabilities (383 ) 57 (326 ) Noncontrolling interests (1,700 ) — (1,700 ) Total consideration paid $ 12,013 $ — $ 12,013 The fair value of assets acquired and liabilities assumed, measurement period adjustments, as well as a reconciliation to cash consideration transferred is presented in the table below (in millions). Preliminary November 30, 2017 Measurement Period Adjustments Final November 30, 2017 Intangible assets $ 295 $ — $ 295 Content rights 176 — 176 Accounts receivable 84 — 84 Other assets 26 — 26 Other liabilities (230 ) 12 (218 ) Net assets acquired $ 351 $ 12 $ 363 Goodwill 136 (12 ) 124 Remeasurement gain on previously held equity interest (33 ) — (33 ) Carrying value of previously held equity interest (329 ) — (329 ) Redeemable noncontrolling interest (55 ) — (55 ) Cash consideration transferred $ 70 $ — $ 70 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 |
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). Year Ended December 31, 2018 2017 Revenues: Distribution $ 961 $ 14 Advertising 2,377 25 Other 156 19 Total revenues $ 3,494 $ 58 Net income (loss) available to Discovery, Inc. $ 203 $ (1 ) The following table presents the Company's pro forma combined revenues and net income (in millions, except per share value). The Company's 2017 OWN and MTG transactions were not material individually or in the aggregate, therefore no pro forma information is presented for 2016. Year Ended December 31, 2018 2017 Revenues $ 11,176 $ 10,790 Net income (loss) available to Discovery, Inc. 823 (329 ) Net income (loss) per share - basic 1.15 (0.46 ) Net income (loss) per share - diluted 1.15 (0.47 ) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Summary of Investment Holdings | The Company’s investments consisted of the following (in millions). Category Balance Sheet Location December 31, 2018 December 31, 2017 Time deposits Cash and cash equivalents $ — $ 1,305 Equity securities: Money market funds Cash and cash equivalents 286 2,707 Mutual funds and company-owned life insurance contracts Prepaid and other current assets 28 182 Mutual funds and company-owned life insurance contracts Other noncurrent assets 188 — Equity method investments: Equity investments Equity method investment 841 335 Note receivable Equity method investment 94 — Equity Investments: Common stock investments with readily determinable fair values Other noncurrent assets 77 164 Equity investments without readily determinable fair value Other noncurrent assets 379 295 Total investments $ 1,893 $ 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 Year Ended December 31, Renewable Energy Investments 2018 2017 2016 Loss on renewable energy investments Loss from equity investees, net $ (11 ) $ (251 ) $ (24 ) Tax benefit: Equity passive loss Income tax expense $ 2 $ 83 $ 9 Investment tax credits Income tax expense 12 211 17 Total tax benefit $ 14 $ 294 $ 26 The table set forth below presents selected financial information for investments accounted for under the equity method. Because renewable energy projects discussed above are accounted for under the HLBV equity method of accounting, the Company's equity method losses do not directly correlate with the GAAP results of the investees presented below. The selected statement of operations information for each of the three years ended December 31, 2018 , 2017 , and 2016 and the selected balance sheet information as of December 31, 2018 and 2017 (in millions) is summarized in the table below. 2018 2017 2016 Selected Statement of Operations Information: Revenues $ 3,140 $ 1,780 $ 1,617 Cost of sales 1,973 1,100 998 Operating income 847 76 83 Pre-tax income (loss) from continuing operations before extraordinary items 180 16 (78 ) After-tax net loss 96 (27 ) (98 ) Net loss attributable to the entity 96 (27 ) (99 ) Selected Balance Sheet Information: Current assets $ 1,855 $ 1,002 Noncurrent assets 2,465 1,946 Current liabilities 1,398 701 Noncurrent liabilities 1,334 1,008 Redeemable preferred stock 438 476 Non-controlling interests 267 6 |
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). December 31, 2018 December 31, 2017 Cost $ 195 $ 195 Accumulated change in the value of: Equity securities recognized in other expense, net (88 ) (1 ) Unhedged equity securities recorded in other comprehensive income — 32 Reclassification of accumulated other comprehensive income to retained earnings 32 — Other-than-temporary impairment (62 ) (62 ) Carrying value $ 77 $ 164 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Categories | 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 table below presents assets and liabilities measured at fair value on a recurring basis (in millions). December 31, 2018 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Equity securities: Money market funds Cash and cash equivalents $ 286 $ — $ — $ 286 Mutual funds Prepaid expenses and other current assets 13 — — 13 Company-owned life insurance contracts Prepaid expenses and other current assets — 15 — 15 Mutual funds Other noncurrent assets 158 — — 158 Company-owned life insurance contracts Other noncurrent assets — 30 — 30 Equity investments with readily determinable fair value: Common stock Other noncurrent assets 77 — — 77 Derivatives: Cash flow hedges: Foreign exchange Prepaid expenses and other current assets — 13 — 13 Net investment hedges: Cross-currency swaps Other noncurrent assets — 41 — 41 Foreign exchange Other noncurrent assets — 1 — 1 No hedging designation: (a) Equity (Lionsgate Collar) Prepaid expenses and other current assets — 14 — 14 Equity (Lionsgate Collar) Other noncurrent assets — 27 — 27 Foreign exchange Other noncurrent assets — 11 — 11 Total $ 534 $ 152 $ — $ 686 Liabilities Deferred compensation plan Accrued liabilities $ 37 $ — $ — $ 37 Deferred compensation plan Other noncurrent liabilities 178 — — 178 Derivatives: Cash flow hedges: Foreign exchange Accrued liabilities — 3 — 3 Net investment hedges: Cross-currency swaps Accrued liabilities — 39 — 39 Cross-currency swaps Other noncurrent liabilities — 81 — 81 No hedging designation: Cross-currency swaps Accrued liabilities — 1 — 1 Total $ 215 $ 124 $ — $ 339 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 Equity 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 2 and Note 10.) |
Content Rights (Tables)
Content Rights (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Content Rights | The following table presents the components of content rights (in millions). December 31, 2018 2017 Produced content rights: Completed $ 5,609 $ 4,355 In-production 612 442 Coproduced content rights: Completed 682 745 In-production 53 27 Licensed content rights: Acquired 1,007 1,070 Prepaid (a) 154 181 Content rights, at cost 8,117 6,820 Accumulated amortization (4,735 ) (4,197 ) Total content rights, net 3,382 2,623 Current portion (313 ) (410 ) Noncurrent portion $ 3,069 $ 2,213 a) Prepaid licensed content rights includes payments for rights to the Olympic Games of $65 million that are reflected as noncurrent content rights and $83 million that are reflected as current content rights on the consolidated balance sheet as of December 31, 2018 and 2017 , respectively. |
Schedule of Content Expense | Content expense consisted of the following (in millions). For the year ended December 31, 2018 2017 2016 Content amortization $ 2,858 $ 1,878 $ 1,701 Other production charges 471 310 272 Content impairments 430 32 72 Total content expense $ 3,759 $ 2,220 $ 2,045 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following (in millions). December 31, 2018 2017 Land, buildings and leasehold improvements $ 365 $ 363 Broadcast equipment 730 728 Capitalized software costs 440 379 Office equipment, furniture, fixtures and other 458 431 Property and equipment, at cost 1,993 1,901 Accumulated depreciation (1,193 ) (1,304 ) Property and equipment, net $ 800 $ 597 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segment | The carrying value and changes in the carrying value of goodwill attributable to each business unit were as follows (in millions). U.S. Networks International Networks Education and Other Total December 31, 2016 $ 5,265 $ 2,708 $ 67 $ 8,040 Acquisitions (Note 3) 211 7 — 218 Dispositions (Note 3) — — (30 ) (30 ) Impairment of goodwill — (1,327 ) — (1,327 ) Foreign currency translation 2 167 3 172 December 31, 2017 5,478 1,555 40 7,073 Acquisitions (Note 3) 5,319 802 — 6,121 Dispositions (Note 3) — — (40 ) (40 ) Foreign currency translation and other adjustments $ (12 ) $ (136 ) $ — (148 ) December 31, 2018 $ 10,785 $ 2,221 $ — $ 13,006 |
Schedule of Intangible Assets Subject to Amortization | Finite-lived intangible assets consisted of the following (in millions, except years). Weighted Average Amortization Period (Years) December 31, 2018 December 31, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets subject to amortization: Trademarks 10 $ 1,669 $ (342 ) $ 1,327 $ 494 $ (224 ) $ 270 Customer relationships 10 9,455 (1,501 ) 7,954 2,026 (758 ) 1,268 Other 9 314 (85 ) 229 118 (50 ) 68 Total $ 11,438 $ (1,928 ) $ 9,510 $ 2,638 $ (1,032 ) $ 1,606 |
Schedule of Intangible Assets Not Subject to Amortization | Indefinite-lived intangible assets not subject to amortization (in millions): December 31, 2018 2017 Trademarks $ 164 $ 164 |
Amortization Expense for Intangible Assets | Amortization expense relating to intangible assets subject to amortization for each of the next five years and thereafter is estimated to be as follows (in millions). 2019 2020 2021 2022 2023 Thereafter Amortization expense $ 1,120 $ 1,065 $ 1,042 $ 1,015 $ 986 $ 4,282 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The table below presents the components of outstanding debt (in millions). December 31, 2018 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 344 358 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 1,185 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 507 538 3.900% Senior notes, semi-annual interest, due November 2024 497 — 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 688 717 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 Revolving credit facility 225 425 Program financing line of credit 22 — Capital lease obligations 252 225 Total debt 17,170 14,913 Unamortized discount, premium and debt issuance costs, net (125 ) (128 ) Debt, net of unamortized discount, premium and debt issuance costs 17,045 14,785 Current portion of debt (1,860 ) (30 ) Noncurrent portion of debt $ 15,185 $ 14,755 |
Schedule of Estimated Debt Payments | The following table presents a summary of scheduled and estimated debt payments, excluding the revolving credit facility, commercial paper borrowings and capital lease obligations, for the next five years based on the amount of the Company's debt outstanding as of December 31, 2018 (in millions). 2019 2020 2021 2022 2023 Thereafter Long-term debt repayments $ 1,811 $ 1,388 $ 650 $ 1,244 $ 1,535 $ 10,043 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2018 and December 31, 2017 . December 31, 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 $ 267 $ 13 $ — $ 3 $ — $ 817 $ 7 $ — $ 12 $ — Net investment hedges: (a) Cross-currency swaps 3,387 — 41 39 81 1,708 — 3 13 98 Foreign exchange 52 — 1 — — 303 2 — 8 — Fair value hedges: Equity (Lionsgate collar) (b) — — — — — 97 — 13 — — No hedging designation: Foreign exchange 860 — 11 — — — — — — — Interest rate swaps 25 — — — — 25 — — — — Cross-currency swaps 64 — — 1 — 64 — — — 6 Equity (Lionsgate collar) (b) 97 14 27 — — — — — — — Credit contracts — — — — — 665 — — — 1 Total $ 27 $ 80 $ 43 $ 81 $ 9 $ 16 $ 33 $ 105 (a) Excludes £400 million of sterling notes ( $507 million equivalent at December 31, 2018 ) designated as a net investment hedge. (See Note 9.) (b) Upon adoption of ASU 2016-01 on January 1, 2018 , the Lionsgate Collar no longer receives hedge accounting designation. (See Note 2 and Note 5.) |
Schedule of Derivative Instruments Designated as Cash Flow Hedges, Effect on Income and Other Comprehensive Income (Loss) | The following table presents the pretax impact of derivatives designated as cash flow hedges on income and other comprehensive income (loss) (in millions). Year Ended December 31, 2018 2017 2016 Gains (losses) recognized in accumulated other comprehensive loss (a) : Foreign exchange - derivative adjustments $ 34 $ (41 ) $ (1 ) Interest rate - derivative adjustments — — 40 Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - distribution revenue 9 (22 ) (25 ) Foreign exchange - advertising revenue (1 ) (3 ) (2 ) Foreign exchange - costs of revenues 11 — 27 Foreign exchange - other income, net — — 3 Interest rate - interest expense — (1 ) (3 ) Amount of gain recognized in income on derivative (amount excluded from effectiveness testing) (b) : Foreign exchange - other income, net — — 1 Interest rate - other income, net — 17 — Fair value excluded from effectiveness assessment: Foreign exchange - other income, net — — (5 ) (a) For periods prior to the Company's adoption of ASU 2017-12 on July 1, 2018, the amount of gain or (loss) represents only the effective portion of the hedging relationship. Effective with the adoption of ASU 2017-12, gains and losses resulting from the change in the fair value of the hedging relationship are recognized as components of accumulated other comprehensive loss. (b) For periods prior to the Company's adoption of ASU 2017-12 on July 1, 2018, amounts reflect the change in the fair value of the ineffective portion of the hedging relationship. No hedging instruments for which ineffectiveness was recognized directly into income in 2017 or in years prior were outstanding at the date of adoption of ASU 2017-12. |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table presents the pretax impact of derivatives designated as net investment hedges on other comprehensive income (loss) (in millions). Other than amounts excluded from effectiveness testing, there were no other gains (losses) reclassified from accumulated other comprehensive loss to income during the years ended December 31, 2018, 2017 and 2016 . Year Ended December 31, Amount of gain (loss) recognized in AOCI Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 2018 2017 2016 2018 2017 2016 Gains (losses) recognized in AOCI: Cross currency swaps $ 43 $ (96 ) $ 3 Interest expense, net $ 14 $ — $ — Foreign exchange contracts (a) — (18 ) — N/A — — — Sterling notes (foreign denominated debt) (a) 30 2 — N/A — — — Total $ 73 $ (112 ) $ 3 $ 14 $ — $ — (a) There are no existing components that are eligible for exclusion from effectiveness testing under ASU 2017-12. There were no forward exchange contracts outstanding at the date of adoption of ASU 2017-12. |
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 year ended December 31, 2018 . There were no amounts of ineffectiveness recognized on fair value hedges for the year ended December 31, 2018 . As this hedge relationship was not active as of the date of adoption of ASU 2017-12, no transition adjustment was required. Year Ended December 31, 2017 2016 Gains (losses) on changes in fair value of hedged AFS $ 18 $ (17 ) (Losses) gains on changes in the intrinsic value of equity contracts (17 ) 16 Fair value of equity contracts excluded from effectiveness assessment 5 (6 ) Total in other income (expense), net $ 6 $ (7 ) |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the pretax gains (losses) on derivatives not designated as hedges and recognized in other expense, net in the consolidated statements of operations (in millions). Year Ended December 31, 2018 2017 2016 Interest rate swaps $ — $ (98 ) $ — Cross-currency swaps 4 (6 ) — Foreign exchange 18 — (1 ) Credit contracts (1 ) (1 ) — Equity 29 — — Total in other income (expense), net $ 50 $ (105 ) $ (1 ) |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The table below summarizes the Company's redeemable noncontrolling interests balances (in millions). December 31, 2018 2017 OWN $ 58 $ 56 MTG 121 120 Discovery Family 206 210 Discovery Japan 30 27 Total $ 415 $ 413 The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions). December 31, 2018 2017 2016 Beginning balance $ 413 $ 243 $ 241 Initial fair value of redeemable noncontrolling interests of acquired businesses — 137 — Cash distributions to redeemable noncontrolling interests (25 ) (30 ) (22 ) Comprehensive income (loss) adjustments: Net income attributable to redeemable noncontrolling interests 20 24 23 Other comprehensive earnings attributable to redeemable noncontrolling interests — 1 — Currency translation on redemption values 2 — 1 Retained earnings adjustments: Adjustments to redemption value 3 38 — Interest adjustment 2 — — Ending balance $ 415 $ 413 $ 243 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Treasury Stock by Class | The table below presents a summary of common stock repurchases (in millions). Year Ended December 31, 2017 2016 Series C Common Stock: Shares repurchased 14.3 34.8 Purchase price (a) $ 381 $ 895 |
Schedule of Preferred Shares Issued | The following table summarizes the preferred shares issued at the time of the Exchange. Pre-Exchange Post-Exchange Shares Held Prior to the Amendment Converts into Common Stock Shares Issued Subsequent to the Amendment Converts into Common Stock Series A Preferred Stock 70,673,242 Common A 70,673,242 Series A-1 Preferred Stock 7,852,582 Common A 70,673,242 Common C 70,673,242 Series C-1 Preferred Stock 3,649,573 Common C 70,673,242 Series C Preferred Stock 24,874,370 Common C 49,748,740 Series C-1 Preferred Stock 2,569,020 Common C 49,748,740 |
Components of Other Comprehensive Income (Loss) | The table below presents the tax effects related to each component of other comprehensive (loss) income and reclassifications made into the consolidated statements of operations (in millions). Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 Pretax Tax Benefit (Expense) Net-of-tax Pretax Tax Benefit (Expense) Net-of-tax Pretax Tax Benefit (Expense) Net-of-tax Currency translation adjustments: Unrealized (losses) gains: Foreign currency $ (246 ) $ (6 ) $ (252 ) $ 280 $ 3 $ 283 $ (234 ) $ 41 $ (193 ) Net investment hedges 59 — 59 (112 ) — (112 ) 3 (1 ) 2 Reclassifications: Gain on disposition 4 — 4 12 — 12 — — — Total currency translation adjustments (183 ) (6 ) (189 ) 180 3 183 (231 ) 40 (191 ) AFS adjustments (a) : Unrealized gains (losses) - AFS securities — — — 36 (6 ) 30 (34 ) 6 (28 ) Reclassifications to other expense, net: Other-than-temporary-impairment AFS securities — — — — — — 62 (10 ) 52 Hedged portion of AFS securities — — — (18 ) 3 (15 ) 17 (3 ) 14 Total equity investment adjustments — — — 18 (3 ) 15 45 (7 ) 38 Derivative adjustments: Unrealized gains (losses) 34 (8 ) 26 (41 ) 15 (26 ) 39 (14 ) 25 Reclassifications: Distribution revenue (9 ) 2 (7 ) 22 (8 ) 14 25 (7 ) 18 Advertising revenue 1 — 1 3 (1 ) 2 2 — 2 Costs of revenues (11 ) 3 (8 ) — — — (27 ) 7 (20 ) Interest expense — — — 1 — 1 3 (1 ) 2 Other (expense) income, net — — — (17 ) 6 (11 ) (4 ) 1 (3 ) Total derivative adjustments 15 (3 ) 12 (32 ) 12 (20 ) 38 (14 ) 24 Pension Plan and SERP Liability: Unrealized gains 3 — 3 — — — — — — Total Pension Plan and SERP Liability adjustments 3 — 3 — — — — — — Other comprehensive (loss) income adjustments $ (165 ) $ (9 ) $ (174 ) $ 166 $ 12 $ 178 $ (148 ) $ 19 $ (129 ) |
Schedule of Accumulated Other Comprehensive Loss | The table below presents the changes in the components of accumulated other comprehensive loss, net of taxes (in millions). Currency Translation Adjustments AFS Adjustments (a) Derivative Adjustments Pension Plan and SERP Liability Accumulated Other Comprehensive Income (Loss) December 31, 2015 $ (606 ) $ (27 ) $ — $ — $ (633 ) Other comprehensive (loss) income before reclassifications (191 ) (28 ) 25 — (194 ) Reclassifications from accumulated other comprehensive loss to net income — 66 (1 ) — 65 Other comprehensive loss (191 ) 38 24 — (129 ) December 31, 2016 (797 ) 11 24 — (762 ) Other comprehensive income (loss) before reclassifications 171 30 (26 ) — 175 Reclassifications from accumulated other comprehensive loss to net income 12 (15 ) 6 — 3 Other comprehensive income (loss) 183 15 (20 ) — 178 Other comprehensive loss attributable to redeemable noncontrolling interests (1 ) — — — (1 ) December 31, 2017 (615 ) 26 4 — (585 ) Other comprehensive (loss) income before reclassifications (193 ) — 26 3 (164 ) Reclassifications from accumulated other comprehensive loss to net income 4 — (14 ) — (10 ) Other comprehensive (loss) income (189 ) — 12 3 (174 ) Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 — (26 ) — — (26 ) December 31, 2018 $ (804 ) $ — $ 16 $ 3 $ (785 ) (a) Effective January 1, 2018 , unrealized gains and losses on equity investments with readily determinable fair values are recorded in other (expense) income, net. (See Note 2 and Note 4.) |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 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. Year Ended December 31, 2018 U.S. Networks International Networks Education and Other Corporate and inter-segment Total Revenues: Distribution $ 2,456 $ 2,082 $ — $ — $ 4,538 Advertising 3,749 1,765 — — 5,514 Other 145 302 54 — 501 Totals $ 6,350 $ 4,149 $ 54 $ — $ 10,553 Year Ended December 31, 2017 U.S. Networks International Networks Education and Other Corporate and inter-segment Total Revenues: Distribution $ 1,612 $ 1,862 $ — $ — $ 3,474 Advertising 1,740 1,332 1 — 3,073 Other 82 87 157 — 326 Totals $ 3,434 $ 3,281 $ 158 $ — $ 6,873 Year Ended December 31, 2016 U.S. Networks International Networks Education and Other Corporate and inter-segment Total Revenues: Distribution $ 1,532 $ 1,681 $ — $ — $ 3,213 Advertising 1,690 1,279 1 — 2,970 Other 63 80 173 (2 ) 314 Totals $ 3,285 $ 3,040 $ 174 $ (2 ) $ 6,497 |
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 December 31, 2018 Accounts receivable $ 1,838 11,321 (10,527 ) (12 ) $ 2,620 Deferred revenues: Current 255 1,378 (1,371 ) (13 ) 249 Long term (a) 109 38 (27 ) — 120 December 31, 2016 Additions (d) Reductions (e) Foreign Currency December 31, 2017 Accounts receivable $ 1,495 7,074 (6,747 ) 16 $ 1,838 Deferred revenues: Current 163 936 (875 ) 31 255 Long term (a) 122 26 (43 ) 4 109 (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 3.) (c) This column includes the impact of the sale of the Education Business on April 30, 2018 . (See Note 3.) As of the sale date, accounts receivable and deferred revenue balances were $32 million and $74 million , respectively. (d) This column includes OWN accounts receivable and deferred revenues balances of $84 million and $5 million , respectively, as of November 30, 2017, the acquisition date, and TEN deferred revenues balance of $8 million as of September 25, 2017, the acquisition date. (See Note 3.) (e) This column includes the impact of the sale of Raw and Betty on April 28, 2017 . (See Note 3.) As of the sale date, accounts receivable and deferred revenue balances were $6 million and $17 million , respectively. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Equity-Based Compensation Expense | The table below presents the components of share-based compensation expense (in millions). Year Ended December 31, 2018 2017 2016 PRSUs $ 24 $ 6 $ 34 RSUs 27 23 17 Stock options 22 12 13 SARs 8 (3 ) 4 ESPP and other (1 ) 1 1 Total share-based compensation expense $ 80 $ 39 $ 69 Tax benefit recognized $ 13 $ 9 $ 25 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The table below presents stock option activity (in millions, except years and weighted-average exercise price). Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding as of December 31, 2017 12.3 $ 27.46 3.5 $ 14 Granted (a) 15.1 $ 27.51 Exercised (3.9 ) $ 18.14 $ 30 Forfeited (2.4 ) $ 30.47 Outstanding as of December 31, 2018 21.1 $ 28.86 5.3 $ 9 Vested and expected to vest as of December 31, 2018 21.1 $ 28.86 5.3 $ 9 Exercisable as of December 31, 2018 5.1 $ 29.92 2.6 $ 7 (a) Stock options granted during the year ended December 31, 2018 include 2 million awards granted in connection with the acquisition of Scripps Networks. The table below presents PRSU activity (in millions, except years and weighted-average grant price). PRSUs Weighted- Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (years) Aggregate Fair Value Outstanding as of December 31, 2017 3.5 $ 33.41 0.9 $ 76 Granted 0.6 $ 24.06 Converted (1.1 ) $ 40.21 $ 25 Forfeited (0.1 ) $ 26.98 Outstanding as of December 31, 2018 2.9 $ 28.98 0.8 $ 69 Vested and expected to vest as of December 31, 2018 2.9 $ 28.98 0.8 $ 69 Convertible as of December 31, 2018 0.5 $ 39.96 0.0 $ 13 The table below presents RSU activity (in millions, except years and weighted-average grant price). RSUs Weighted- Average Grant Date Fair Value Weighted-Average Remaining Contractual Term (years) Aggregate Fair Value Outstanding as of December 31, 2017 3.4 $ 28.78 2.6 $ 77 Granted 3.6 $ 23.85 Converted (1.2 ) $ 26.68 $ 30 Forfeited (0.9 ) $ 27.38 Outstanding as of December 31, 2018 4.9 $ 25.95 2.6 $ 120 Vested and expected to vest as of December 31, 2018 4.9 $ 25.95 2.6 $ 120 The table below presents SAR award activity (in millions, except years and weighted-average grant price). SARs Weighted- Average Grant Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding as of December 31, 2017 7.7 $ 31.58 1.0 $ — Granted 3.7 $ 22.37 Settled (0.1 ) $ 26.80 $ — Forfeited (3.7 ) $ 35.75 Outstanding as of December 31, 2018 7.6 $ 25.10 1.2 $ 6 Vested and expected to vest as of December 31, 2018 7.6 $ 25.10 1.2 $ 6 The fair value of outstanding SARs is estimated using the Black-Scholes option-pricing model. The weighted-average assumptions used to determine the fair value of outstanding SARs were as follows. Year Ended December 31, 2018 2017 2016 Risk-free interest rate 2.53 % 1.74 % 0.95 % Expected term (years) 1.2 1.0 0.9 Expected volatility 36.52 % 31.37 % 29.46 % Dividend yield — — — |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of stock options is estimated using the Black-Scholes option-pricing model. The weighted-average assumptions used to determine the fair value of stock options as of the date of grant during 2018 , 2017 and 2016 were as follows. Year Ended December 31, 2018 2017 2016 Risk-free interest rate 2.74 % 1.87 % 1.26 % Expected term (years) 5.5 5.0 5.0 Expected volatility 29.57 % 27.52 % 28.74 % Dividend yield — — — |
Retirement Savings Plans (Table
Retirement Savings Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Other changes in plan assets and benefit obligations recognized in net periodic benefit cost and other comprehensive loss for the defined benefit plans, following the acquisition of Scripps Networks, consist of the following. Year Ended December 31, 2018 Pension Plan SERP Net actuarial loss (gain) $ 1 $ (5 ) Curtailments (1 ) — Settlement charges — 2 Total recognized in other comprehensive (income) loss — (3 ) Net periodic benefit cost (1 ) (1 ) Total recognized in net periodic benefit cost and other comprehensive loss $ (1 ) $ (4 ) The following table presents the components of the net periodic pension cost for the Pension Plan and SERP (in millions). The components of net periodic pension costs are reflected in other expense, net in the consolidated statements of operations. Year Ended December 31, 2018 Pension Plan SERP Interest cost $ 3 $ 1 Expected return on plan assets, net of expenses (4 ) — Settlement charges — (2 ) Net periodic pension cost $ (1 ) $ (1 ) |
Schedule of Assumptions Used | Assumptions used in determining the Pension Plan and SERP expense as of December 31, 2018. December 31, 2018 Pension Plan SERP Discount rate 3.84 % 3.41 % Long-term rate of return on plan assets 7.50 % N/A Rate of compensation increases 3.57 % 3.21 % Assumption Description Discount rate Based on a bond portfolio approach that includes high-quality debt instruments 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 past experience and the near-term outlook. Mortality RP 2014 mortality tables adjusted and projected using the scale MP-2018 mortality improvement rates. Assumptions used in determining benefit obligations for the defined benefit plans were as follows. December 31, 2018 Pension Plan SERP Discount rate 3.93 % 3.77 % Rate of compensation increases 3.23 % 2.89 % |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following table presents information about plan assets and obligations of the Pension Plan and SERP based upon a valuation as of December 31, 2018. Year Ended December 31, 2018 Pension Plan SERP Accumulated benefit obligation $ 81 $ 24 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 96 $ 62 Interest cost 3 1 Benefits paid (1 ) — Actuarial gains (5 ) (5 ) Curtailments (1 ) — Settlement charges (a) (8 ) (32 ) Projected benefit obligation at end of year 84 26 Plan assets: Fair value at beginning of year 60 — Actual return on plan assets (2 ) — Company contributions 21 32 Benefits paid (1 ) — Settlement charges (a) (8 ) (32 ) Fair value at end of year 70 — Underfunded status $ (14 ) $ (26 ) Amounts recognized as assets and liabilities in the consolidated balance sheets: Current liabilities $ — $ (7 ) Non-current liabilities (14 ) (19 ) Total $ (14 ) $ (26 ) Amounts recognized in accumulated other comprehensive loss consist of: Net gain $ — $ (3 ) (a) In 2018, Discovery incurred pension settlement charges primarily related to former employees impacted by the restructuring plan. |
Schedule of Amounts Recognized in Balance Sheet | The following table presents information about plan assets and obligations of the Pension Plan and SERP based upon a valuation as of December 31, 2018. Year Ended December 31, 2018 Pension Plan SERP Accumulated benefit obligation $ 81 $ 24 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 96 $ 62 Interest cost 3 1 Benefits paid (1 ) — Actuarial gains (5 ) (5 ) Curtailments (1 ) — Settlement charges (a) (8 ) (32 ) Projected benefit obligation at end of year 84 26 Plan assets: Fair value at beginning of year 60 — Actual return on plan assets (2 ) — Company contributions 21 32 Benefits paid (1 ) — Settlement charges (a) (8 ) (32 ) Fair value at end of year 70 — Underfunded status $ (14 ) $ (26 ) Amounts recognized as assets and liabilities in the consolidated balance sheets: Current liabilities $ — $ (7 ) Non-current liabilities (14 ) (19 ) Total $ (14 ) $ (26 ) Amounts recognized in accumulated other comprehensive loss consist of: Net gain $ — $ (3 ) (a) In 2018, Discovery incurred pension settlement charges primarily related to former employees impacted by the restructuring plan. |
Schedule of Amounts Recognized in Other Comprehensive Loss | Other changes in plan assets and benefit obligations recognized in net periodic benefit cost and other comprehensive loss for the defined benefit plans, following the acquisition of Scripps Networks, consist of the following. Year Ended December 31, 2018 Pension Plan SERP Net actuarial loss (gain) $ 1 $ (5 ) Curtailments (1 ) — Settlement charges — 2 Total recognized in other comprehensive (income) loss — (3 ) Net periodic benefit cost (1 ) (1 ) Total recognized in net periodic benefit cost and other comprehensive loss $ (1 ) $ (4 ) The following table presents information about plan assets and obligations of the Pension Plan and SERP based upon a valuation as of December 31, 2018. Year Ended December 31, 2018 Pension Plan SERP Accumulated benefit obligation $ 81 $ 24 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 96 $ 62 Interest cost 3 1 Benefits paid (1 ) — Actuarial gains (5 ) (5 ) Curtailments (1 ) — Settlement charges (a) (8 ) (32 ) Projected benefit obligation at end of year 84 26 Plan assets: Fair value at beginning of year 60 — Actual return on plan assets (2 ) — Company contributions 21 32 Benefits paid (1 ) — Settlement charges (a) (8 ) (32 ) Fair value at end of year 70 — Underfunded status $ (14 ) $ (26 ) Amounts recognized as assets and liabilities in the consolidated balance sheets: Current liabilities $ — $ (7 ) Non-current liabilities (14 ) (19 ) Total $ (14 ) $ (26 ) Amounts recognized in accumulated other comprehensive loss consist of: Net gain $ — $ (3 ) (a) In 2018, Discovery incurred pension settlement charges primarily related to former employees impacted by the restructuring plan. |
Schedule of Allocation of Plan Assets | The following table presents Pension Plan asset allocations by asset category. Investment Type Target Allocations for 2019 December 31, 2018 Debt securities 90 % 89 % U.S. equity securities 10 % 8 % Cash — % 3 % Total 100 % 100 % Investment Type Description Debt securities Includes securities issued or guaranteed by the U.S. government and corporate debt obligations. U.S. equity securities Includes common stocks of large, medium and small companies that are predominantly U.S.-based. Cash Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. December 31, 2018 Total Level 1 Level 2 Level 3 Debt securities Mutual funds $ 62 $ 62 — — U.S. equity securities Mutual funds 6 6 — — Cash 2 2 — — Total $ 70 $ 70 $ — $ — |
Schedule of Estimated Future Benefit Payments | The following table presents the estimated future benefit payments expected to be paid out for the defined benefits plans over the next ten years. Pension Plan SERP 2019 $ 5 $ 8 2020 5 2 2021 4 2 2022 5 2 2023 7 2 Thereafter 29 7 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs by Reportable Segment | Restructuring and other charges by reportable segment, education and other, and corporate and inter-segment eliminations were as follows (in millions). Year Ended December 31, 2018 2017 2016 U.S. Networks $ 322 $ 18 $ 15 International Networks 307 42 26 Education and Other 1 3 3 Corporate and inter-segment eliminations 120 12 14 Total restructuring and other charges $ 750 $ 75 $ 58 |
Schedule of Restructuring and Related Costs | Year Ended December 31, 2018 2017 2016 Restructuring charges $ 345 $ 68 $ 55 Other charges 405 7 3 Total restructuring and other charges $ 750 $ 75 $ 58 |
Schedule of Restructuring and Related Costs Changes in Exit Liabilities | Changes in restructuring and other liabilities recorded in accrued liabilities and other noncurrent liabilities by reportable segment, education and other, and corporate and inter-segment eliminations were as follows (in millions). U.S. Networks International Networks Education and Other Corporate and inter-segment eliminations Total December 31, 2016 $ 11 $ 11 $ — $ 17 $ 39 Net contract termination accruals 3 — — — 3 Net employee relocation/termination accruals 12 42 4 7 65 Cash paid (21 ) (28 ) (3 ) (12 ) (64 ) December 31, 2017 5 25 1 12 43 Net contract termination accruals 12 67 — 14 93 Net employee relocation/termination accruals 89 56 1 99 245 Cash paid (90 ) (102 ) (2 ) (79 ) (273 ) December 31, 2018 $ 16 $ 46 $ — $ 46 $ 108 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) from Continuing Operations Before Income Taxes | The domestic and foreign components of income (loss) before income taxes were as follows (in millions). Year Ended December 31, 2018 2017 2016 Domestic $ 1,125 $ 815 $ 1,414 Foreign (103 ) (952 ) 257 Income (loss) before income taxes $ 1,022 $ (137 ) $ 1,671 |
Schedule of Components of Provision for Income Taxes | The components of the provision for income taxes were as follows (in millions). Year Ended December 31, 2018 2017 2016 Current: Federal $ 323 $ 177 $ 384 State and local 30 45 (56 ) Foreign 119 153 152 472 375 480 Deferred: Federal (113 ) (124 ) 45 State and local (21 ) (7 ) — Foreign 3 (68 ) (72 ) (131 ) (199 ) (27 ) Income taxes $ 341 $ 176 $ 453 |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles the Company's effective income tax rates to the U.S. federal statutory income tax rates. Year Ended December 31, 2018 2017 2016 U.S. federal statutory income tax provision $ 215 21 % $ (48 ) 35 % $ 585 35 % State and local income taxes, net of federal tax benefit 10 1 % 23 (18 )% (36 ) (2 )% Effect of foreign operations 111 11 % (35 ) 25 % (17 ) (1 )% Domestic production activity deductions — — % (52 ) 39 % (62 ) (4 )% Change in uncertain tax positions 37 3 % 60 (44 )% 8 — % Preferred stock modification — — % 12 (9 )% — — % Goodwill impairment — — % 458 (334 )% — — % Renewable energy investments tax credits (See Note 4) (12 ) (1 )% (195 ) 142 % (17 ) (1 )% Noncontrolling interest adjustment (18 ) (2 )% — — % — — % U.S. Legislative Changes (19 ) (2 )% (43 ) 32 % — — % Non-deductible compensation 20 2 % — — % — — % Other, net (3 ) — % (4 ) 4 % (8 ) — % Income tax expense $ 341 33 % $ 176 (128 )% $ 453 27 % |
Schedule of Deferred Tax Assets and Liabilities | Components of deferred income tax assets and liabilities were as follows (in millions). December 31, 2018 2017 Deferred income tax assets: Accounts receivable $ 11 $ 5 Tax attribute carry-forward 321 151 Accrued liabilities and other 302 190 Total deferred income tax assets 634 346 Valuation allowance (336 ) (105 ) Net deferred income tax assets 298 241 Deferred income tax liabilities: Intangible assets (1,418 ) (315 ) Content rights (107 ) (82 ) Equity method investments in partnerships (488 ) (68 ) Other (15 ) (31 ) Total deferred income tax liabilities (2,028 ) (496 ) Net deferred income tax liabilities $ (1,730 ) $ (255 ) |
Schedule of Income Tax Assets and Liabilities Financial Position | The Company’s net deferred income tax assets and liabilities were reported on the consolidated balance sheets as follows (in millions). December 31, 2018 2017 Noncurrent deferred income tax assets (included within other noncurrent assets) $ 81 $ 64 Deferred income tax liabilities (classified on the balance sheet) (1,811 ) (319 ) Net deferred income tax liabilities $ (1,730 ) $ (255 ) |
Summary of Operating Loss Carryforwards | The Company’s loss carry-forwards were reported on the consolidated balance sheets as follows (in millions). State Foreign Loss carry-forwards $ 322 $ 1,727 Deferred tax asset related to loss carry-forwards 16 249 Valuation allowance against loss carry-forwards (17 ) (201 ) Earliest expiration date of loss carry-forwards 2019 2019 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest and penalty amounts) is as follows (in millions). Year Ended December 31, 2018 2017 2016 Beginning balance $ 189 $ 117 $ 173 Additions based on tax positions related to the current year 43 27 13 Additions for tax positions of prior years 52 57 19 Additions for tax positions acquired in business combinations 169 — — Reductions for tax positions of prior years (9 ) — (60 ) Settlements (6 ) (8 ) (16 ) Reductions due to lapse of statutes of limitations (52 ) (6 ) (9 ) (Reductions) additions due to foreign currency exchange rates (8 ) 2 (3 ) Ending balance $ 378 $ 189 $ 117 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Income Available to Discovery Stockholders | Year Ended December 31, 2018 2017 2016 Numerator: Net income (loss) $ 681 $ (313 ) $ 1,218 Less: Allocation of undistributed income to Series A-1 convertible preferred stock (60 ) 41 (139 ) Net income attributable to noncontrolling interests (67 ) — (1 ) Net income attributable to redeemable noncontrolling interests (20 ) (24 ) (23 ) Redeemable noncontrolling interest adjustments to redemption value (5 ) — — Net income (loss) available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 529 $ (296 ) $ 1,055 Allocation of net income (loss) available to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: Series A, B and C common stockholders 429 (225 ) 789 Series C-1 convertible preferred stockholders 100 (71 ) 266 Total 529 (296 ) 1,055 Add: Allocation of undistributed income to Series A-1 convertible preferred stockholders 60 (41 ) 139 Net income (loss) available to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 589 $ (337 ) $ 1,194 |
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). Year Ended December 31, 2018 2017 2016 Denominator — weighted average: Series A, B and C common shares outstanding — basic 498 384 401 Impact of assumed preferred stock conversion 187 192 206 Dilutive effect of share-based awards 3 — 3 Series A, B and C common shares outstanding — diluted 688 576 610 Series C-1 convertible preferred stock outstanding — basic and diluted 6 6 7 |
Schedule of Basic and Diluted Earnings per Share | The table below sets forth the Company's calculated earnings (loss) per share. Year Ended December 31, 2018 2017 2016 Basic net income (loss) per share available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.86 $ (0.59 ) $ 1.97 Series C-1 convertible preferred stockholders $ 16.65 $ (11.33 ) $ 38.07 Diluted net income (loss) per share available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.86 $ (0.59 ) $ 1.96 Series C-1 convertible preferred stockholders $ 16.58 $ (11.33 ) $ 37.88 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Year Ended December 31, 2018 2017 2016 Anti-dilutive share-based awards 15 19 8 PRSUs whose performance targets have not yet been achieved 1 2 4 Anti-dilutive common stock repurchase contracts — — 2 |
Schedule of Preferred Stock Repurchase | The table below sets forth the impact of the preferred stock modification to the Company's calculated basic earnings per share: Year Ended December 31, 2016 Pre-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 1.97 Series C-1 convertible preferred stockholders $ 3.94 Post-Exchange: Basic net income per share available to: Series A, B and C common stockholders $ 1.97 Series C-1 convertible preferred stockholders $ 38.07 |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Changes in valuation and qualifying accounts consisted of the following (in millions): Beginning of Year Additions Write-offs End of Year 2018 Allowance for doubtful accounts $ 55 $ 6 $ (15 ) $ 46 Deferred tax valuation allowance (a) 105 283 (52 ) 336 2017 Allowance for doubtful accounts 47 12 (4 ) 55 Deferred tax valuation allowance 25 84 (4 ) 105 2016 Allowance for doubtful accounts 40 13 (6 ) 47 Deferred tax valuation allowance 19 9 (3 ) 25 (a) Additions to the valuation allowance for deferred tax assets of $195 million relate to balances acquired through acquisitions in the current year, with the remainder charged to income tax expense. |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in millions): December 31, 2018 2017 Accrued payroll and related benefits $ 484 $ 535 Content rights payable 384 219 Accrued interest 154 148 Other accrued liabilities 541 407 Total accrued liabilities $ 1,563 $ 1,309 |
Schedule of Other Expense, Net | Other (expense) income, net , consisted of the following (in millions): Year Ended December 31, 2018 2017 2016 Foreign currency (losses) gains, net $ (93 ) $ (83 ) $ 75 Gains (losses) on derivative instruments 50 (82 ) (12 ) Remeasurement gain on previously held equity interest — 33 — Change in the value of common stock investments with readily determinable fair value (a) (88 ) — — Interest income (b) 15 21 — Other-than-temporary impairment of AFS investments — — (62 ) Other (expense) income, net (4 ) 1 3 Total other (expense) income, net $ (120 ) $ (110 ) $ 4 (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 2 and 4). (b) Interest income for the years ended December 31, 2018 and 2017 is comprised primarily of interest on proceeds from the issuance of senior notes used to fund the acquisition of Scripps Networks. As of December 31, 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 Proceeds, Net Share-based plan proceeds, net in the statement of cash flows consisted of the following (in millions): (a) Year Ended December 31, 2018 2017 2016 Tax settlements associated with share-based plans $ (18 ) $ (30 ) $ (11 ) Proceeds from issuance of common stock in connection with share-based plans 72 46 50 Total share-based plan proceeds, net $ 54 $ 16 $ 39 (a) Share-based plan payments, net includes the retrospective reclassification of windfall tax benefits or deficiencies from financing activities or operating activities in the statement of cash flows presentation pursuant to the adoption of the guidance on share-based payments on January 1, 2017 . There were $7 million in net windfall tax adjustments for the year ended December 31, 2016 reclassified from financing activities to operating activities. (See Note 2). |
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information Year Ended December 31, 2018 2017 2016 Cash paid for taxes, net (a) $ 389 $ 274 $ 527 Cash paid for interest 740 357 343 Non-cash investing and financing activities: Fair value of assets and liabilities of business received in exchange for redeemable noncontrolling interests (b) — 144 — Fair value of investment received, net of cash paid — — 82 Net asset value of contributed business — — 32 Equity issued for the acquisition of Scripps Networks 3,218 — — Accrued purchases of property and equipment 39 24 42 Assets acquired under capital lease arrangements 58 103 37 (a) The increase in cash paid for taxes, net, between 2017 and 2018 is mostly due to non-recurring tax benefits from the Company's investments in limited liability companies that sponsor renewable energy projects in 2017 (See Note 4), partially offset by the lower tax rate enacted as part of the TCJA, in addition to higher foreign tax payments, and a decrease in refunds. (b) Amount relates to the Company's MTG joint venture. (See Note 3.) The joint venture was affected via DCL's contribution of the Velocity network to a newly formed entity, MTG, which is a non-guarantor subsidiary of the Company and is reflected as a non-cash contribution in the condensed consolidating financial statements. (See Note 25.) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 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). Year Ended December 31, 2018 2017 2016 Revenues and service charges: Liberty Group $ 627 $ 476 $ 387 Equity method investees 289 145 129 Other 69 46 32 Total revenues and service charges $ 985 $ 667 $ 548 Interest income $ 4 $ 13 $ 17 Expenses $ (321 ) $ (178 ) $ (102 ) |
Schedule of Related Party Transactions Receivables | The table below presents receivables due from related parties (in millions). December 31, 2018 2017 Receivables $ 167 $ 105 Note receivable (See Note 4.) (a) 94 — (a) Amount relates to a note receivable with UKTV, an equity method investee acquired in conjunction with the acquisition of Scripps Networks. (See Note 4.) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Significant Contractual Commitments | As of December 31, 2018 , the Company’s significant contractual commitments, including related payments due by period, were as follows (in millions). Leases Year Ending December 31, Operating Capital Content Other Total 2019 $ 89 $ 51 $ 1,431 $ 523 $ 2,094 2020 90 46 960 352 1,448 2021 92 41 510 200 843 2022 58 34 554 123 769 2023 51 41 418 76 586 Thereafter 564 73 2,139 89 2,865 Total minimum payments 944 286 6,012 1,363 8,605 Amounts representing interest — (34 ) — — (34 ) Total $ 944 $ 252 $ 6,012 $ 1,363 $ 8,571 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Segment | Year Ended December 31, 2018 2017 2016 U.S. Networks $ 6,350 $ 3,434 $ 3,285 International Networks 4,149 3,281 3,040 Education and Other 54 158 174 Corporate and inter-segment eliminations — — (2 ) Total revenues $ 10,553 $ 6,873 $ 6,497 |
Schedule of Adjusted OIBDA by Segment | Year Ended December 31, 2018 2017 2016 U.S. Networks $ 3,500 $ 2,026 $ 1,922 International Networks 1,077 859 835 Education and Other 3 6 (10 ) Corporate and inter-segment eliminations (441 ) (360 ) (334 ) Total Adjusted OIBDA $ 4,139 $ 2,531 $ 2,413 |
Schedule of Reconciliation of Net Income (Loss) Available to Discovery, Inc. to Total Adjusted OIBDA | Year Ended December 31, 2018 2017 2016 Net income (loss) available to Discovery, Inc. $ 594 $ (337 ) $ 1,194 Net income attributable to redeemable noncontrolling interests 20 24 23 Net income attributable to noncontrolling interests 67 — 1 Income tax expense 341 176 453 Income (loss) before income taxes 1,022 (137 ) 1,671 Other expense (income), net 120 110 (4 ) Loss from equity investees, net 63 211 38 Loss on extinguishment of debt — 54 — Interest expense, net 729 475 353 Operating income 1,934 713 2,058 (Gain) loss on disposition (84 ) 4 (63 ) Restructuring and other charges 750 75 58 Depreciation and amortization 1,398 330 322 Impairment of goodwill — 1,327 — Mark-to-market share-based compensation 31 3 38 Scripps Networks transaction and integration costs 110 79 — Total Adjusted OIBDA $ 4,139 $ 2,531 $ 2,413 |
Schedule of Total Assets by Segment | December 31, 2018 2017 U.S. Networks $ 18,683 $ 4,127 International Networks 7,208 5,187 Education and Other 227 394 Corporate and inter-segment eliminations 6,432 12,847 Total assets $ 32,550 $ 22,555 |
Schedule of Content Amortization and Impairment Expense | Year Ended December 31, 2018 2017 2016 U.S. Networks $ 1,702 $ 776 $ 756 International Networks 1,584 1,126 1,008 Education and Other 2 8 9 Total content amortization and impairment expense $ 3,288 $ 1,910 $ 1,773 |
Schedule of Revenues by Geography | Year Ended December 31, 2018 2017 2016 U.S. $ 6,415 $ 3,560 $ 3,411 Non-U.S. 4,138 3,313 3,086 Total revenues $ 10,553 $ 6,873 $ 6,497 |
Schedule of Property and Equipment by Geography | December 31, 2018 2017 U.S. $ 350 $ 309 Poland 185 — U.K. 160 173 Other non-U.S. 105 115 Total property and equipment, net $ 800 $ 597 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2018 (a)(e) 1 st quarter 2 nd quarter 3 rd quarter 4 th quarter Revenues $ 2,307 $ 2,845 $ 2,592 $ 2,809 Operating income 204 650 369 711 Net income 3 244 135 299 Net (loss) income available to Discovery, Inc. (8 ) 216 117 269 Earnings (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: Basic $ (0.01 ) $ 0.30 $ 0.16 $ 0.38 Diluted $ (0.01 ) $ 0.30 $ 0.16 $ 0.38 2017 (b)(c)(d)(e) 1 st quarter 2 nd quarter 3 rd quarter 4 th quarter Revenues $ 1,613 $ 1,745 $ 1,651 $ 1,864 Operating income (loss) 487 630 433 (837 ) Net income (loss) 221 380 223 (1,137 ) Net income (loss) available to Discovery, Inc. 215 374 218 (1,144 ) Earnings (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: Basic $ 0.37 $ 0.65 $ 0.38 $ (1.99 ) Diluted $ 0.37 $ 0.64 $ 0.38 $ (1.99 ) (a) On March 6, 2018 , Discovery acquired Scripps Networks pursuant to the Merger Agreement. 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. (See Note 3.) (b) Goodwill impairment expense of $1.3 billion was recognized during the fourth quarter of 2017 . (See Note 8.) (c) On September 25, 2017 , the Company acquired a 67.5% controlling interest in MTG, a new joint venture with GoldenTree, in exchange for its contribution of the MotorTrend (previously known as Velocity). On November 30, 2017 , the Company acquired a controlling interest in OWN from Harpo, increasing Discovery’s ownership stake from 49.50% to 73.75% . 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 interest. On April 28, 2017 , the Company sold Raw and Betty to All3Media and recorded a loss of $4 million upon disposition. (See Note 3.) As of December 31, 2017 , the Company had incurred transaction and integration costs for the Scripps Networks acquisition of $79 million , including the $35 million charge associated with the modification of Advance/Newhouse's preferred stock. (See Note 12.) (d) In March 2017 , DCL completed a cash tender offer for $600 million aggregate principal amount of DCL's 5.050% senior notes due 2020 and 5.625% senior notes due 2019. This transaction resulted in a pretax loss on extinguishment of debt of $54 million for the year ended December 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. (See Note 9.) (e) Earnings (loss) per share amounts may not sum to annual total since each is calculated independently. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2018 (in millions) Discovery Scripps Inc. DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 315 $ — $ 61 $ 475 $ 135 $ — $ 986 Receivables, net — — — 405 1,305 910 — 2,620 Content rights, net — — — 1 250 62 — 313 Prepaid expenses and other current assets 21 18 22 49 134 68 — 312 Inter-company trade receivables, net — — — 151 — — (151 ) — Total current assets 21 333 22 667 2,164 1,175 (151 ) 4,231 Investment in and advances to subsidiaries 8,367 13,248 — 6,290 — — (27,905 ) — Noncurrent content rights, net — — — 607 1,501 961 — 3,069 Goodwill — — — 3,678 3,298 6,030 — 13,006 Intangible assets, net — — — 246 1,261 8,167 — 9,674 Equity method investments, including note receivable — 94 — 23 291 527 — 935 Other noncurrent assets, including property and equipment, net — 35 20 537 607 456 (20 ) 1,635 Total assets $ 8,388 $ 13,710 $ 42 $ 12,048 $ 9,122 $ 17,316 $ (28,076 ) $ 32,550 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 106 $ — $ 1,709 $ 35 $ 10 $ — $ 1,860 Other current liabilities — 30 — 394 1,243 470 — 2,137 Inter-company trade payables, net — — — — 151 — (151 ) — Total current liabilities — 136 — 2,103 1,429 480 (151 ) 3,997 Noncurrent portion of debt — 134 — 14,641 375 35 — 15,185 Negative carrying amount in subsidiaries, net — — 5,183 — — 3,427 (8,610 ) — Other noncurrent liabilities 2 56 — 487 613 1,713 (20 ) 2,851 Total liabilities 2 326 5,183 17,231 2,417 5,655 (8,781 ) 22,033 Redeemable noncontrolling interests — — — — 415 — — 415 Total Discovery, Inc. stockholders’ equity 8,386 13,384 (5,141 ) (5,183 ) 6,290 11,661 (21,011 ) 8,386 Noncontrolling interests — — — — — — 1,716 1,716 Total equity 8,386 13,384 (5,141 ) (5,183 ) 6,290 11,661 (19,295 ) 10,102 Total liabilities and equity $ 8,388 $ 13,710 $ 42 $ 12,048 $ 9,122 $ 17,316 $ (28,076 ) $ 32,550 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 — — 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 For the Year Ended December 31, 2018 (in millions) Discovery Scripps Inc. DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 1,950 $ 5,597 $ 3,047 $ (41 ) $ 10,553 Costs of revenues, excluding depreciation and amortization — — — 445 2,558 956 (24 ) 3,935 Selling, general and administrative 41 — — 315 1,694 587 (17 ) 2,620 Depreciation and amortization — 1 — 53 365 979 — 1,398 Restructuring and other charges 8 — — 118 407 217 — 750 Gain on disposition — — — — (84 ) — — (84 ) Total costs and expenses 49 1 — 931 4,940 2,739 (41 ) 8,619 Operating (loss) income (49 ) (1 ) — 1,019 657 308 — 1,934 Equity in earnings of subsidiaries 637 198 473 209 — 315 (1,832 ) — Interest expense, net — (6 ) — (693 ) (29 ) (1 ) — (729 ) Income (loss) from equity investees, net — — — 4 (91 ) 24 — (63 ) Other (expense) income, net (5 ) 12 — 71 (145 ) (53 ) — (120 ) Income before income taxes 583 203 473 610 392 593 (1,832 ) 1,022 Income tax benefit (expense) 11 — — (137 ) (163 ) (52 ) — (341 ) Net income 594 203 473 473 229 541 (1,832 ) 681 Net income attributable to noncontrolling interests — — — — — — (67 ) (67 ) Net income attributable to redeemable noncontrolling interests — — — — — — (20 ) (20 ) Net income available to Discovery, Inc. $ 594 $ 203 $ 473 $ 473 $ 229 $ 541 $ (1,919 ) $ 594 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Year Ended December 31, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ 1,988 $ 4,897 $ — $ (12 ) $ 6,873 Costs of revenues, excluding depreciation and amortization — — 467 2,191 — (2 ) 2,656 Selling, general and administrative 53 — 309 1,416 — (10 ) 1,768 Impairment of goodwill — — — 1,327 — — 1,327 Depreciation and amortization — — 42 288 — — 330 Restructuring and other charges — — 35 40 — — 75 Loss on disposition — — — 4 — — 4 Total costs and expenses 53 — 853 5,266 — (12 ) 6,160 Operating (loss) income (53 ) — 1,135 (369 ) — — 713 Equity in loss of subsidiaries (288 ) (288 ) (541 ) — (192 ) 1,309 — Interest expense, net — — (448 ) (27 ) — — (475 ) Loss on extinguishment of debt — — (54 ) — — — (54 ) Loss from equity method investees, net — — (3 ) (208 ) — — (211 ) Other (expense) income, net — — (204 ) 94 — — (110 ) Loss before income taxes (341 ) (288 ) (115 ) (510 ) (192 ) 1,309 (137 ) Income tax benefit (expense) 4 — (173 ) (7 ) — — (176 ) Net loss (337 ) (288 ) (288 ) (517 ) (192 ) 1,309 (313 ) Net income attributable to redeemable noncontrolling interests — — — — — (24 ) (24 ) Net loss available to Discovery, Inc. $ (337 ) $ (288 ) $ (288 ) $ (517 ) $ (192 ) $ 1,285 $ (337 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Year Ended December 31, 2016 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ 1,963 $ 4,547 $ — $ (13 ) $ 6,497 Costs of revenues, excluding depreciation and amortization — — 466 1,970 — (4 ) 2,432 Selling, general and administrative 14 — 292 1,393 — (9 ) 1,690 Depreciation and amortization — — 41 281 — — 322 Restructuring and other charges — — 28 30 — — 58 Gain on disposition — — (50 ) (13 ) — — (63 ) Total costs and expenses 14 — 777 3,661 — (13 ) 4,439 Operating (loss) income (14 ) — 1,186 886 — — 2,058 Equity in earnings of subsidiaries 1,203 1,203 602 — 802 (3,810 ) — Interest expense, net — — (332 ) (21 ) — — (353 ) Loss from equity method investees, net — — (3 ) (35 ) — — (38 ) Other income (expense), net — — 40 (36 ) — — 4 Income before income taxes 1,189 1,203 1,493 794 802 (3,810 ) 1,671 Income tax benefit (expense) 5 — (290 ) (168 ) — — (453 ) Net income 1,194 1,203 1,203 626 802 (3,810 ) 1,218 Net income attributable to noncontrolling interests — — — — — (1 ) (1 ) Net income attributable to redeemable noncontrolling interests — — — — — (23 ) (23 ) Net income available to Discovery, Inc. $ 1,194 $ 1,203 $ 1,203 $ 626 $ 802 $ (3,834 ) $ 1,194 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2018 (in millions) Discovery Scripps Inc. DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 594 $ 203 $ 473 $ 473 $ 229 $ 541 $ (1,832 ) $ 681 Other comprehensive (loss) income, net of tax: Currency translation (189 ) (204 ) 15 15 (15 ) (194 ) 383 (189 ) Pension and SERP 3 3 — — — — (3 ) 3 Derivatives 12 — 12 12 12 8 (44 ) 12 Comprehensive income 420 2 500 500 226 355 (1,496 ) 507 Comprehensive income attributable to noncontrolling interests — — — — — — (67 ) (67 ) Comprehensive income attributable to redeemable noncontrolling interests — — — — — — (20 ) (20 ) Comprehensive income attributable to Discovery, Inc. $ 420 $ 2 $ 500 $ 500 $ 226 $ 355 $ (1,583 ) $ 420 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS For the Year Ended December 31, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net loss $ (337 ) $ (288 ) $ (288 ) $ (517 ) $ (192 ) $ 1,309 $ (313 ) Other comprehensive (loss) income, net of tax: Currency translation 183 183 183 186 122 (674 ) 183 Available-for-sale securities 15 15 15 15 10 (55 ) 15 Derivatives (20 ) (20 ) (20 ) (9 ) (13 ) 62 (20 ) Comprehensive loss (159 ) (110 ) (110 ) (325 ) (73 ) 642 (135 ) Comprehensive income attributable to redeemable noncontrolling interests (1 ) (1 ) (1 ) (1 ) (1 ) (20 ) (25 ) Comprehensive loss attributable to Discovery, Inc. $ (160 ) $ (111 ) $ (111 ) $ (326 ) $ (74 ) $ 622 $ (160 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2016 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 1,194 $ 1,203 $ 1,203 $ 626 $ 802 $ (3,810 ) $ 1,218 Other comprehensive (loss) income, net of tax: Currency translation (191 ) (191 ) (191 ) (190 ) (127 ) 699 (191 ) Available-for-sale securities 38 38 38 38 25 (139 ) 38 Derivatives 24 24 24 22 16 (86 ) 24 Comprehensive income 1,065 1,074 1,074 496 716 (3,336 ) 1,089 Comprehensive income attributable to noncontrolling interests — — — — — (1 ) (1 ) Comprehensive income attributable to redeemable noncontrolling interests (23 ) (23 ) (23 ) (23 ) (15 ) 84 (23 ) Comprehensive income attributable to Discovery, Inc. $ 1,042 $ 1,051 $ 1,051 $ 473 $ 701 $ (3,253 ) $ 1,065 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2018 (in millions) Discovery Scripps Inc. DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (15 ) $ (85 ) $ 11 $ (111 ) $ 1,543 $ 1,233 $ — $ 2,576 Investing Activities Purchases of property and equipment — — — (24 ) (94 ) (29 ) — (147 ) (Payments) receipts for investments, net — — — (10 ) (59 ) 8 — (61 ) Business (acquisitions) dispositions, net of cash (acquired) disposed (8,714 ) 54 — — — 95 — (8,565 ) Payments for derivative instruments — — — — (2 ) — — (2 ) Proceeds from dispositions, net of cash disposed — — — — 107 — — 107 Distributions from equity method investees — — — — 1 — — 1 Proceeds from sale of assets — — — — 68 — — 68 Intercompany distributions, and other investing activities, net — 11 — 12 4 (9 ) (12 ) 6 Cash (used in) provided by investing activities (8,714 ) 65 — (22 ) 25 65 (12 ) (8,593 ) Financing Activities Commercial paper repayments, net — — — (5 ) — — — (5 ) Principal repayment of revolving credit facility — — — — (200 ) — — (200 ) Borrowings under term loan facilities — — — 2,000 — — — 2,000 Principal repayments of term loans — — — (2,000 ) — — — (2,000 ) Principal repayment of long term debt — — — (16 ) — — — (16 ) Principal repayments of capital lease obligations — — — (10 ) (28 ) (12 ) — (50 ) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — — (26 ) (50 ) — (76 ) Share-based plan proceeds, net 51 — — — 3 — — 54 Borrowings under program financing line of credit — — — 22 — — — 22 Inter-company contributions and other financing activities, net 8,678 335 (11 ) (6,597 ) (1,336 ) (1,093 ) 12 (12 ) Cash provided by (used in) financing activities 8,729 335 (11 ) (6,606 ) (1,587 ) (1,155 ) 12 (283 ) Effect of exchange rate changes on cash and cash equivalents — — — — (15 ) (8 ) — (23 ) Net change in cash and cash equivalents — 315 — (6,739 ) (34 ) 135 — (6,323 ) Cash and cash equivalents, beginning of period — — — 6,800 509 — — 7,309 Cash and cash equivalents, end of period $ — $ 315 $ — $ 61 $ 475 $ 135 $ — $ 986 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (3 ) $ 3 $ 476 $ 1,153 $ — $ — $ 1,629 Investing Activities Business acquisitions, net of cash acquired — — — (60 ) — — (60 ) Payments for investments, net — — (45 ) (399 ) — — (444 ) Proceeds from dispositions, net of cash disposed — — — 29 — — 29 Purchases of property and equipment — — (43 ) (92 ) — — (135 ) Distributions from equity method investees — — — 77 — — 77 Payments (receipts) for derivative instruments, net — — (111 ) 10 — — (101 ) Other investing activities, net — — (1 ) 2 — — 1 Inter-company contributions (distributions) — — 42 — — (42 ) — Cash used in investing activities — — (158 ) (433 ) — (42 ) (633 ) Financing Activities Commercial paper repayments, net — — (48 ) — — — (48 ) Borrowings under revolving credit facility — — 350 — — 350 Principal repayments of revolving credit facility — — (475 ) — — (475 ) Borrowings from debt, net of discount and including premiums to par value — — 7,488 — — — 7,488 Principal repayments of debt, including discount payment and premiums to par value — — (650 ) — — — (650 ) Payments for bridge financing commitment fees — — (40 ) — — — (40 ) Principal repayments of capital lease obligations — — (7 ) (26 ) — — (33 ) Repurchases of stock (603 ) — — — — — (603 ) Cash settlement of common stock repurchase contracts 58 — — — — — 58 Distributions to redeemable noncontrolling interests — — — (30 ) — — (30 ) Share-based plan proceeds, net 16 — — — — — 16 Inter-company distributions — — — (42 ) — 42 — Inter-company contributions and other financing activities, net 532 (3 ) (156 ) (455 ) — — (82 ) Cash provided by (used in) financing activities 3 (3 ) 6,462 (553 ) — 42 5,951 Effect of exchange rate changes on cash and cash equivalents — — — 62 — — 62 Net change in cash and cash equivalents — — 6,780 229 — — 7,009 Cash and cash equivalents, beginning of period — — 20 280 — — 300 Cash and cash equivalents, end of period $ — $ — $ 6,800 $ 509 $ — $ — $ 7,309 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2016 (in millions) Discovery DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (20 ) $ (9 ) $ 249 $ 1,160 $ — $ — $ 1,380 Investing Activities Payments for investments, net — — (124 ) (148 ) — — (272 ) Proceeds from dispositions, net of cash disposed — — — 19 — — 19 Purchases of property and equipment — — (18 ) (70 ) — — (88 ) Distributions from equity method investees — — — 87 — — 87 Inter-company distributions — — 30 — — (30 ) — Other investing activities, net — — — (2 ) — — (2 ) Cash used in investing activities — — (112 ) (114 ) — (30 ) (256 ) Financing Activities Commercial paper repayments, net — — (45 ) — — — (45 ) Borrowings under revolving credit facility — — 350 263 — — 613 Principal repayments of revolving credit facility — — (225 ) (610 ) — — (835 ) Borrowings from debt, net of discount and including premiums — — 498 — — — 498 Principal repayments of capital lease obligations — — (5 ) (23 ) — — (28 ) Repurchases of stock (1,374 ) — — — — — (1,374 ) Prepayments of common stock repurchase contracts (57 ) — — — — — (57 ) Distributions to redeemable noncontrolling interests — — — (22 ) — — (22 ) Share-based plan proceeds, net 39 — — — — — 39 Hedge of borrowings from debt instruments — — 40 — — — 40 Intercompany distributions — — — (30 ) — 30 — Inter-company contributions and other financing activities, net 1,412 9 (733 ) (701 ) — — (13 ) Cash provided by (used in) financing activities 20 9 (120 ) (1,123 ) — 30 (1,184 ) Effect of exchange rate changes on cash and cash equivalents — — — (30 ) — — (30 ) Net change in cash and cash equivalents — — 17 (107 ) — — (90 ) Cash and cash equivalents, beginning of period — — 3 387 — — 390 Cash and cash equivalents, end of period $ — $ — $ 20 $ 280 $ — $ — $ 300 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Impact of the Preferred Stock Modification) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Series A, B and C Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net income per share, basic (in dollars per share) | $ 0.38 | $ 0.16 | $ 0.30 | $ (0.01) | $ (1.99) | $ 0.38 | $ 0.65 | $ 0.37 | $ 0.86 | $ (0.59) | $ 1.97 |
Series C-1 Convertible Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net income per share, basic (in dollars per share) | $ 16.65 | $ (11.33) | $ 38.07 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Accounting and Reporting Pronouncements Adopted) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 5,254 | $ 4,632 | ||
Accounting Standards Update 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 26 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 7 | |||
Retained Earnings | Accounting Standards Update 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | 26 | |||
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2017-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ (87) | |||
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ (26) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Foreign Currency) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Foreign currency transaction gain (loss), before tax | $ (93) | $ (83) | $ 75 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Content Rights) (Details) - Content rights | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Content capitalization duration threshold | 1 year |
Content rights, useful life | 3 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Content rights, useful life | 4 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Building | Minimum | |
Property and Equipment [Line Items] | |
Useful life | 15 years |
Building | Maximum | |
Property and Equipment [Line Items] | |
Useful life | 39 years |
Broadcast Equipment | Minimum | |
Property and Equipment [Line Items] | |
Useful life | 3 years |
Broadcast Equipment | Maximum | |
Property and Equipment [Line Items] | |
Useful life | 5 years |
Capitalized Computer Software | Minimum | |
Property and Equipment [Line Items] | |
Useful life | 2 years |
Capitalized Computer Software | Maximum | |
Property and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and Fixtures | Minimum | |
Property and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and Fixtures | Maximum | |
Property and Equipment [Line Items] | |
Useful life | 5 years |
Assets Held under Capital Leases | Minimum | |
Property and Equipment [Line Items] | |
Useful life | 1 year |
Assets Held under Capital Leases | Maximum | |
Property and Equipment [Line Items] | |
Useful life | 15 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Share-Based Compensation Expense) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Dividend yield | 0.00% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 355 | $ 162 | $ 166 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Concentrations Risk) (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Concentration Risk [Line Items] | |
Derivative asset, fair value of collateral | $ 0 |
Largest 10 Distributors | Customer Concentration Risk | Distribution | U.S. Networks | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 96.00% |
Largest 10 Distributors | Customer Concentration Risk | Distribution | International Networks | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 39.00% |
Credit Risk | |
Concentration Risk [Line Items] | |
Derivative assets | $ 107,000,000 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Scripps Networks Interactive, Inc. ("Scripps Networks")) (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 06, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 13,006 | $ 7,073 | $ 8,040 | |
U.S. Networks | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 10,785 | 5,478 | 5,265 | |
International Networks | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 2,221 | $ 1,555 | $ 2,708 | |
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 | $ 6,121 | |||
Contingent liability | $ 110 | |||
Scripps Networks | U.S. Networks | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 5,300 | |||
Scripps Networks | International Networks | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 802 | |||
Scripps Networks | No Election or Mixed Consideration Election | ||||
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 | |||
Scripps Networks | Cash Consideration Election | ||||
Business Acquisition [Line Items] | ||||
Share price portion paid in cash (in dollars per share) | $ 90 | |||
Scripps Networks | Stock Consideration Election | ||||
Business Acquisition [Line Items] | ||||
Equity interest issued or issuable (in shares) | 3.9392 |
Acquisitions and Dispositions_3
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 Dispositions_4
Acquisitions and Dispositions (Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Mar. 06, 2018 | Nov. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 25, 2017 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 13,006 | $ 7,073 | $ 8,040 | |||
Remeasurement gain on previously held equity interests | 0 | (34) | $ 0 | |||
Redeemable noncontrolling interest | $ (415) | $ (413) | ||||
Scripps Networks | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 783 | |||||
Other current assets | 412 | |||||
Content rights | 1,088 | |||||
Property and equipment | 315 | |||||
Goodwill | 6,121 | |||||
Intangible assets | 9,175 | |||||
Equity method investments, including note receivable | 713 | |||||
Other noncurrent assets | 114 | |||||
Current liabilities assumed | (599) | |||||
Debt assumed | (2,481) | |||||
Deferred income taxes | (1,602) | |||||
Other noncurrent liabilities | (326) | |||||
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 | 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 | (9) | |||||
Content rights | 0 | |||||
Property and equipment | 0 | |||||
Goodwill | 118 | |||||
Intangible assets | 0 | |||||
Equity method investments, including note receivable | (157) | |||||
Other noncurrent assets | 3 | |||||
Current liabilities assumed | (105) | |||||
Debt assumed | 0 | |||||
Deferred income taxes | 93 | |||||
Other noncurrent liabilities | 57 | |||||
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 | (218) | |||||
Net assets acquired | 363 | |||||
Goodwill | 124 | |||||
Remeasurement gain on previously held equity interests | (33) | |||||
Carrying value of previously held equity interest | (329) | |||||
Redeemable noncontrolling interest | (55) | |||||
Cash consideration transferred | 70 | |||||
Harpo | Preliminary | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 84 | |||||
Intangible assets | 295 | |||||
Content rights | 176 | |||||
Other assets | 26 | |||||
Other liabilities | (230) | |||||
Net assets acquired | 351 | |||||
Goodwill | 136 | |||||
Remeasurement gain on previously held equity interests | (33) | |||||
Carrying value of previously held equity interest | (329) | |||||
Redeemable noncontrolling interest | (55) | |||||
Cash consideration transferred | 70 | |||||
Harpo | Measurement Period Adjustments | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 0 | |||||
Intangible assets | 0 | |||||
Content rights | 0 | |||||
Other assets | 0 | |||||
Other liabilities | 12 | |||||
Net assets acquired | 12 | |||||
Goodwill | (12) | |||||
Remeasurement gain on previously held equity interests | 0 | |||||
Carrying value of previously held equity interest | 0 | |||||
Redeemable noncontrolling interest | 0 | |||||
Cash consideration transferred | $ 0 | |||||
MTG | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 53 | |||||
Property and equipment | 17 | |||||
Other assets | 6 | |||||
Goodwill | 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 | 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 | 16 | |||||
Liabilities assumed | 1 | |||||
Net assets acquired | $ 0 |
Acquisitions and Dispositions_5
Acquisitions and Dispositions (Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Mar. 06, 2018 | Dec. 31, 2018 |
Advertiser relationships | ||
Business Acquisition [Line Items] | ||
Weighted Average Useful Life in Years | 10 years | |
Scripps Networks | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 9,175 | |
Scripps Networks | Trademarks and trade names | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 1,225 | |
Weighted Average Useful Life in Years | 10 years | |
Scripps Networks | Advertiser relationships | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 4,995 | |
Weighted Average Useful Life in Years | 10 years | |
Scripps Networks | Advertising backlog | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 280 | |
Weighted Average Useful Life in Years | 1 year | |
Scripps Networks | Affiliate relationships | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 2,455 | |
Weighted Average Useful Life in Years | 12 years | |
Scripps Networks | Broadcast licenses | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 220 | |
Weighted Average Useful Life in Years | 6 years |
Acquisitions and Dispositions_6
Acquisitions and Dispositions (OWN) (Details) - USD ($) $ in Millions | Nov. 06, 2018 | Nov. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 29, 2017 |
Business Acquisition [Line Items] | ||||||
Remeasurement gain on previously held equity interest | $ 0 | $ 34 | $ 0 | |||
Harpo | ||||||
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 | 667 | |||||
Variable interest entity, consolidated, carrying amount, liabilities | $ 235 | |||||
Weighted average useful life | 9 years | |||||
Harpo | Subsequent Acquisition, Window One | ||||||
Business Acquisition [Line Items] | ||||||
Step acquisition, subsequent acquisition, term of window | 90 days | |||||
Harpo | Subsequent Acquisition, Window Two | ||||||
Business Acquisition [Line Items] | ||||||
Step acquisition, subsequent acquisition, term of window | 2 years 6 months | 2 years 6 months | ||||
Step acquisition, equity interest in acquiree, incremental percentage per annum | 9.337% |
Acquisitions and Dispositions_7
Acquisitions and Dispositions (Motor Trend Group) (Details) - USD ($) | Sep. 25, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Initial fair value of redeemable noncontrolling interests of acquired businesses | $ 0 | $ 137,000,000 | $ 0 | ||
Adjustments to redemption value | 3,000,000 | 38,000,000 | 0 | ||
Redeemable noncontrolling interest balance | 415,000,000 | 413,000,000 | $ 243,000,000 | $ 241,000,000 | |
MTG | |||||
Business Acquisition [Line Items] | |||||
Post-acquisition ownership percentage of the acquiror in the combined entity | 67.50% | ||||
Remeasurement gain (loss) | $ 0 | ||||
Weighted average useful life | 16 years | ||||
Initial fair value of redeemable noncontrolling interests of acquired businesses | $ 82,000,000 | ||||
Adjustments to redemption value | 38,000,000 | ||||
Redeemable noncontrolling interest balance | $ 120,000,000 | $ 121,000,000 | $ 120,000,000 | ||
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 Dispositions_8
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 Dispositions_9
Acquisitions and Dispositions (Schedule of Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Net income (loss) available to Discovery, Inc. | $ 823 | $ (329) |
Scripps Networks Interactive, Harpo, and VTEN | ||
Business Acquisition [Line Items] | ||
Revenues | $ 11,176 | $ 10,790 |
Net income (loss) per share - basic (in dollars per share) | $ 1.15 | $ (0.46) |
Net income (loss) per share - diluted (in dollars per share) | $ 1.15 | $ (0.47) |
Acquisitions and Disposition_10
Acquisitions and Dispositions (Impact of Business Combinations) (Details) - Scripps Networks Interactive, Harpo, and VTEN - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 3,494 | $ 58 |
Net income (loss) available to Discovery, Inc. | 203 | (1) |
Distribution | ||
Business Acquisition [Line Items] | ||
Total revenues | 961 | 14 |
Advertising | ||
Business Acquisition [Line Items] | ||
Total revenues | 2,377 | 25 |
Other | ||
Business Acquisition [Line Items] | ||
Total revenues | $ 156 | $ 19 |
Acquisitions and Disposition_11
Acquisitions and Dispositions (Dispositions) (Details) - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 28, 2017 | Dec. 02, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Gain (loss) on disposition | $ 84 | $ (4) | $ 63 | |||
Goodwill written off related to sale | 40 | 30 | ||||
Goodwill | 13,006 | 7,073 | $ 8,040 | |||
Group Nine Media | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire equity method investments | $ 100 | |||||
Equity investments without readily determinable fair value | $ 212 | |||||
Group Nine Media | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by parent | 42.00% | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Education Business | ||||||
Business Acquisition [Line Items] | ||||||
Consideration received on sale | $ 113 | |||||
Gain (loss) on disposition | 84 | |||||
Loss on write-off of net assets | 44 | |||||
Goodwill written off related to sale | $ 40 | |||||
Loss from discontinued operations | $ 2 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Raw and Betty businesses | ||||||
Business Acquisition [Line Items] | ||||||
Gain (loss) on disposition | $ (4) | (4) | ||||
Loss from discontinued operations | $ 4 | |||||
Impairment of assets held for sale | 38 | |||||
Goodwill | $ 30 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Group Nine Media | ||||||
Business Acquisition [Line Items] | ||||||
Gain (loss) on disposition | 50 | |||||
Impairment of assets held for sale | 32 | |||||
Goodwill | $ 22 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Education Business | Education Business | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by parent | 88.00% | 12.00% | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | All3Media | Raw and Betty businesses | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by parent | 50.00% |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Total investments | $ 1,893 | $ 4,988 |
Cash and cash equivalents | ||
Investment [Line Items] | ||
Time deposits | 0 | 1,305 |
Cash and cash equivalents | Money market funds | ||
Investment [Line Items] | ||
Carrying value | 286 | 2,707 |
Prepaid and other current assets | Mutual funds and company-owned life insurance contracts | ||
Investment [Line Items] | ||
Carrying value | 28 | 182 |
Other noncurrent assets | ||
Investment [Line Items] | ||
Equity investments without readily determinable fair value | 379 | 295 |
Other noncurrent assets | Mutual funds and company-owned life insurance contracts | ||
Investment [Line Items] | ||
Carrying value | 188 | 0 |
Other noncurrent assets | Common stock investments with readily determinable fair values | ||
Investment [Line Items] | ||
Carrying value | 77 | 164 |
Equity method investment | Equity investments | ||
Investment [Line Items] | ||
Equity method investments | 841 | 335 |
Equity method investment | Note receivable | ||
Investment [Line Items] | ||
Equity method investments | $ 94 | $ 0 |
Investments (Money Market Funds
Investments (Money Market Funds and Time Deposits) (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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments [Abstract] | |||
Variable interest, maximum exposure to loss | $ 570 | ||
Note receivable included in carrying value of VIE investments | 94 | ||
Carrying value of investments in VIE's accounted for using the equity method | 528 | $ 181 | |
Variable interest entity gains (losses) | $ (52) | $ (182) | $ 7 |
Investments (UKTV and NC) (Deta
Investments (UKTV and NC) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 06, 2018 | Aug. 11, 2011 |
UKTV | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 386 | ||
Note receivable | 94 | ||
nC Plus | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 180 | ||
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of investments in VIE's accounted for using the equity method | $ 528 | $ 181 | |
Variable interest, maximum exposure to loss | 570 | ||
Renewable Energy Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire equity method investments | 17 | 322 | $ 63 |
Carrying value of investments in VIE's accounted for using the equity method | 89 | $ 98 | |
Variable interest, maximum exposure to loss | $ 4 |
Investments (Equity Earnings (L
Investments (Equity Earnings (Loss) and Tax Benefit (Loss) Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Loss on renewable energy investments | $ (52) | $ (182) | $ 7 |
Total tax benefit | (341) | (176) | (453) |
Renewable Energy Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Loss on renewable energy investments | (11) | (251) | (24) |
Equity passive loss | 2 | 83 | 9 |
Investment tax credits | 12 | 211 | 17 |
Total tax benefit | $ 14 | $ 294 | $ 26 |
Investments (Other Equity Metho
Investments (Other Equity Method Investments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Investments [Abstract] | |
Impairment loss | $ 29 |
Investments (Investor Basis Dif
Investments (Investor Basis Differential) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Amortization of intangible assets | $ 1,170 | $ 180 | $ 183 | |
Various equity method investments, aggregated | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Amortization of intangible assets | $ 27 | |||
Expected future amortization of intangible assets | $ 291 |
Investments (Significant Subsid
Investments (Significant Subsidiaries) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Statement of Operations Information: | |||
Net loss attributable to the entity | $ 63 | $ 211 | $ 38 |
Investments Accounted for Under the Equity Method | |||
Selected Statement of Operations Information: | |||
Revenues | 3,140 | 1,780 | 1,617 |
Cost of sales | 1,973 | 1,100 | 998 |
Operating income | 847 | 76 | 83 |
Pre-tax income (loss) from continuing operations before extraordinary items | 180 | 16 | (78) |
After-tax net loss | 96 | (27) | (98) |
Net loss attributable to the entity | (96) | 27 | 99 |
Selected Balance Sheet Information: | |||
Current assets | 1,855 | 1,002 | |
Noncurrent assets | 2,465 | 1,946 | |
Current liabilities | 1,398 | 701 | |
Noncurrent liabilities | 1,334 | 1,008 | |
Redeemable preferred stock | 438 | 476 | |
Non-controlling interests | $ 267 | $ 6 |
Investments (Common Stock Inves
Investments (Common Stock Investments With Readily Determinable Fair Value ) (Details) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||||||
Other-than-temporary impairment | $ 0 | $ 0 | $ (62) | |||
Accounting Standards Update 2016-01 | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | 26 | |||||
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ (26) | |||||
Reclassification of accumulated other comprehensive income to retained earnings | (32) | |||||
Retained Earnings | Accounting Standards Update 2016-01 | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | 26 | |||||
Reclassification of accumulated other comprehensive income to retained earnings | 32 | |||||
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 | ||||
Equity securities recognized in other expense, net | (88) | (1) | ||||
Unhedged equity securities recorded in other comprehensive income | 0 | 32 | ||||
Other-than-temporary impairment | (62) | $ (62) | ||||
Carrying value | $ 77 | $ 164 | ||||
Percentage of shares pledged as collateral | 50.00% | |||||
Lionsgate Collar | Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Reclassification of accumulated other comprehensive income to retained earnings | $ (32) | $ 0 |
Investments (Equity Investments
Investments (Equity Investments Without Readily Determinable Fair Values Assessed Under the Measurement Alternative) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Group Nine Media | |
Other Investment Not Readily Marketable [Line Items] | |
Equity investments without readily determinable fair value | $ 212 |
Refinery29 | |
Other Investment Not Readily Marketable [Line Items] | |
Equity investments without readily determinable fair value | $ 35 |
Group Nine Media | |
Other Investment Not Readily Marketable [Line Items] | |
Ownership percentage by parent | 42.00% |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Common stock | $ 77 | $ 164 |
Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | 1,305 |
Prepaid and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 27 | 9 |
Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 80 | 16 |
Accrued liabilities | Not Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
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 | 39 | 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 | Foreign exchange | ||
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 | 0 | 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 | 81 | 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 | 686 | 4,383 |
Liabilities | 339 | 320 |
Fair Value, Measurements, Recurring | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 1,305 | |
Equity securities | 286 | 2,707 |
Fair Value, Measurements, Recurring | Prepaid and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 13 | 182 |
Company-owned life insurance contracts | 15 | |
Fair Value, Measurements, Recurring | Prepaid and other current assets | Not Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 14 | |
Fair Value, Measurements, Recurring | Prepaid 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 | 13 | 7 |
Fair Value, Measurements, Recurring | Prepaid 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 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 158 | |
Company-owned life insurance contracts | 30 | |
Common stock | 77 | 82 |
Common stock - pledged | 82 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Not Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 27 | |
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 | 41 | 3 |
Fair Value, Measurements, Recurring | Other noncurrent assets | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 1 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Net investment hedges | Not Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 11 | |
Fair Value, Measurements, Recurring | Other noncurrent assets | Fair Value Hedging | Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 13 | |
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 | 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 | 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 | 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 | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 39 | 13 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 178 | |
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 | 6 | |
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 | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 81 | 98 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 534 | 3,053 |
Liabilities | 215 | 182 |
Fair Value, Measurements, Recurring | Level 1 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | |
Equity securities | 286 | 2,707 |
Fair Value, Measurements, Recurring | Level 1 | Prepaid and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 13 | 182 |
Company-owned life insurance contracts | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Prepaid and other current assets | Not Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Prepaid 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 | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Prepaid 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 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 158 | |
Company-owned life insurance contracts | 0 | |
Common stock | 77 | 82 |
Common stock - pledged | 82 | |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent assets | Not Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | 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 | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent assets | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent assets | Net investment hedges | Not Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent assets | Fair Value Hedging | Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 37 | 182 |
Fair Value, Measurements, Recurring | Level 1 | Accrued liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Accrued liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 178 | |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent liabilities | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent liabilities | Not Designated as Hedging Instrument | Credit contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | 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 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 152 | 1,330 |
Liabilities | 124 | 138 |
Fair Value, Measurements, Recurring | Level 2 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 1,305 | |
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Prepaid and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 15 | |
Fair Value, Measurements, Recurring | Level 2 | Prepaid and other current assets | Not Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 14 | |
Fair Value, Measurements, Recurring | Level 2 | Prepaid 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 | 13 | 7 |
Fair Value, Measurements, Recurring | Level 2 | Prepaid 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 | Level 2 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | |
Company-owned life insurance contracts | 30 | |
Common stock | 0 | 0 |
Common stock - pledged | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent assets | Not Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 27 | |
Fair Value, Measurements, Recurring | Level 2 | 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 | 41 | 3 |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent assets | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 1 | |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent assets | Net investment hedges | Not Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 11 | |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent assets | Fair Value Hedging | Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 13 | |
Fair Value, Measurements, Recurring | Level 2 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | 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 | Level 2 | 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 | Level 2 | 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 | Level 2 | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 39 | 13 |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 6 | |
Fair Value, Measurements, Recurring | Level 2 | 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 | Level 2 | 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 | 81 | 98 |
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 | Level 3 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time deposits | 0 | |
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Prepaid and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Company-owned life insurance contracts | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Prepaid and other current assets | Not Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Prepaid 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 | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Prepaid 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 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | |
Company-owned life insurance contracts | 0 | |
Common stock | 0 | 0 |
Common stock - pledged | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent assets | Not Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | 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 | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent assets | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent assets | Net investment hedges | Not Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent assets | Fair Value Hedging | Designated as Hedging Instrument | Equity contract | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Accrued liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Accrued liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent liabilities | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | $ 0 | |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent liabilities | Not Designated as Hedging Instrument | Credit contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | 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 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes, fair value | $ 16.3 | $ 14.8 |
Content Rights (Schedule Of Con
Content Rights (Schedule Of Content Rights) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Licensed content rights: | ||
Content rights, at cost | $ 11,438 | $ 2,638 |
Accumulated amortization | (4,735) | (4,197) |
Total content rights, net | 3,382 | 2,623 |
Current portion | (313) | (410) |
Noncurrent portion | 3,069 | 2,213 |
Content rights | ||
Produced content rights: | ||
Completed | 5,609 | 4,355 |
In-production | 612 | 442 |
Coproduced content rights: | ||
Completed | 682 | 745 |
In-production | 53 | 27 |
Licensed content rights: | ||
Acquired | 1,007 | 1,070 |
Prepaid | 154 | 181 |
Content rights, at cost | 8,117 | 6,820 |
Olympic games | ||
Licensed content rights: | ||
Noncurrent portion | $ 65 | $ 83 |
Content Rights (Schedule Of C_2
Content Rights (Schedule Of Content Expense) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Content amortization | $ 2,858,000,000 | $ 1,878,000,000 | $ 1,701,000,000 |
Other production charges | 471,000,000 | 310,000,000 | 272,000,000 |
Content impairments | 430,000,000 | 32,000,000 | 72,000,000 |
Total content expense | $ 3,759,000,000 | 2,220,000,000 | 2,045,000,000 |
Percentage of unamortized film costs to be amortized within the next three years | 96.00% | ||
Percentage of unamortized film costs, amortization period | 3 years | ||
Amortization of unamortized content rights excluding in process | $ 1,500,000,000 | ||
Scripps Networks | |||
Business Acquisition [Line Items] | |||
Content impairments | $ 405,000,000 | $ 0 | $ 7,000,000 |
Property and Equipment (Compone
Property and Equipment (Components of Property and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Land, buildings and leasehold improvements | $ 365 | $ 363 |
Broadcast equipment | 730 | 728 |
Capitalized software costs | 440 | 379 |
Office equipment, furniture, fixtures and other | 458 | 431 |
Property and equipment, at cost | 1,993 | 1,901 |
Accumulated depreciation | (1,193) | (1,304) |
Property and equipment, net | $ 800 | $ 597 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and Equipment [Line Items] | |||
Capital leased assets, gross | $ 369 | $ 358 | |
Capital leased assets, accumulated amortization | 181 | 154 | |
Accumulated depreciation | (1,193) | (1,304) | |
Depreciation expense | 1,398 | 330 | $ 322 |
Rental expense for operating leases | 205 | 127 | 122 |
Capitalized software development costs | |||
Property and Equipment [Line Items] | |||
Capitalized software costs, net | 136 | 86 | |
Accumulated depreciation | (304) | (293) | |
Property and Equipment | |||
Property and Equipment [Line Items] | |||
Depreciation expense | $ 229 | $ 150 | $ 139 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Goodwill by Reportable Segment) (Details) - USD ($) $ in Millions | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Roll Forward] | |||||
Beginning balance | $ 7,073 | $ 8,040 | |||
Acquisitions | 6,121 | 218 | |||
Dispositions | (40) | (30) | |||
Impairment of goodwill | $ (1,300) | $ (1,300) | 0 | (1,327) | $ 0 |
Foreign currency translation | (148) | 172 | |||
Ending balance | 7,073 | 13,006 | 7,073 | 8,040 | |
U.S. Networks | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 5,478 | 5,265 | |||
Acquisitions | 5,319 | 211 | |||
Dispositions | 0 | 0 | |||
Impairment of goodwill | 0 | ||||
Foreign currency translation | (12) | 2 | |||
Ending balance | 5,478 | 10,785 | 5,478 | 5,265 | |
International Networks | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 1,555 | 2,708 | |||
Acquisitions | 802 | 7 | |||
Dispositions | 0 | 0 | |||
Impairment of goodwill | (1,300) | (1,327) | |||
Foreign currency translation | (136) | 167 | |||
Ending balance | 1,555 | 2,221 | 1,555 | 2,708 | |
Education and Other | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 40 | 67 | |||
Acquisitions | 0 | 0 | |||
Dispositions | (40) | (30) | |||
Impairment of goodwill | 0 | ||||
Foreign currency translation | 0 | 3 | |||
Ending balance | $ 40 | $ 0 | $ 40 | $ 67 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | |||||
Impairment of goodwill | $ (1,300) | $ (1,300) | $ 0 | $ (1,327) | $ 0 |
Amortization of intangible assets | 1,170 | 180 | 183 | ||
International Networks | |||||
Goodwill [Line Items] | |||||
Impairment of goodwill | (1,300) | (1,327) | |||
U.S. Networks | |||||
Goodwill [Line Items] | |||||
Impairment of goodwill | 0 | ||||
Goodwill, accumulated impairments | $ 20 | $ 20 | $ 20 | $ 20 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Intangible Assets Subject to Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross | $ 11,438 | $ 2,638 |
Intangible assets subject to amortization, Accumulated Amortization | (1,928) | (1,032) |
Intangible assets subject to amortization, Net | $ 9,510 | 1,606 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life in Years | 10 years | |
Intangible assets subject to amortization, Gross | $ 1,669 | 494 |
Intangible assets subject to amortization, Accumulated Amortization | (342) | (224) |
Intangible assets subject to amortization, Net | $ 1,327 | 270 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life in Years | 10 years | |
Intangible assets subject to amortization, Gross | $ 9,455 | 2,026 |
Intangible assets subject to amortization, Accumulated Amortization | (1,501) | (758) |
Intangible assets subject to amortization, Net | $ 7,954 | 1,268 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life in Years | 9 years | |
Intangible assets subject to amortization, Gross | $ 314 | 118 |
Intangible assets subject to amortization, Accumulated Amortization | (85) | (50) |
Intangible assets subject to amortization, Net | $ 229 | $ 68 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Intangible Assets Not Subject to Amortization) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trademarks | ||
Indefinite-lived Intangible Assets by Major Class [Line Items] | ||
Intangible assets not subject to amortization | $ 164 | $ 164 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Amortization Expense for Intangible Assets) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Amortization expense | |
2,019 | $ 1,120 |
2,020 | 1,065 |
2,021 | 1,042 |
2,022 | 1,015 |
2,023 | 986 |
Thereafter | $ 4,282 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets (Impairment Analysis) (Details) - USD ($) $ in Millions | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | |||||
Goodwill | $ 7,073 | $ 13,006 | $ 7,073 | $ 8,040 | |
Goodwill, impaired, deficit, amount | $ 100 | ||||
Goodwill, impaired, deficit, percent | 3.00% | ||||
Impairment of goodwill | $ 1,300 | $ 1,300 | 0 | $ 1,327 | $ 0 |
Asia-Pacific Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 188 | ||||
European Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill | 1,100 | ||||
Net assets | 2,700 | ||||
Reporting unit, unrecognized headroom | 1,200 | ||||
Reporting unit, net assets, fair value | $ 3,900 |
Debt (Outstanding Debt) (Detail
Debt (Outstanding Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 17,170 | $ 14,913 |
Capital lease obligations | 252 | 225 |
Unamortized discount, premium and debt issuance costs, net | (125) | (128) |
Debt, net of unamortized discount, premium and debt issuance costs | 17,045 | 14,785 |
Current portion of debt | (1,860) | (30) |
Noncurrent portion of debt | 15,185 | 14,755 |
Line of Credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 225 | 425 |
Line of Credit | Program financing line of credit | ||
Debt Instrument [Line Items] | ||
Total debt | 22 | 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 | $ 344 | 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 | $ 1,185 | 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 | $ 507 | 538 |
Debt instrument interest rate | 2.50% | |
3.900% Senior notes, semi-annual interest, due November 2024 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 497 | 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 | $ 688 | 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 | Mar. 21, 2019 | Apr. 03, 2018USD ($) | Mar. 06, 2018USD ($) | Mar. 13, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 19, 2019USD ($) | Sep. 21, 2017USD ($)$ / £ | Sep. 21, 2017GBP (£)$ / £ |
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 17,170 | $ 14,913 | |||||||||
Loss on extinguishment of debt | $ 0 | 54 | $ 0 | ||||||||
2.750% Senior notes, semi-annual interest, due November 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.75% | ||||||||||
Long-term debt, gross | $ 500 | 0 | |||||||||
3.500% Senior notes, semi-annual interest, due June 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.50% | ||||||||||
Long-term debt, gross | $ 400 | 0 | |||||||||
3.900% Senior notes, semi-annual interest, due November 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.90% | ||||||||||
Long-term debt, gross | $ 497 | 0 | |||||||||
3.950% Senior notes, semi-annual interest, due June 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.95% | ||||||||||
Long-term debt, gross | $ 500 | 0 | |||||||||
2.800% Senior notes, semi-annual interest, due June 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.80% | ||||||||||
Long-term debt, gross | $ 600 | 0 | |||||||||
2.200% Senior notes, semi-annual interest, due September 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.20% | ||||||||||
Long-term debt, gross | $ 500 | 500 | |||||||||
2.950% Senior notes, semi-annual interest, due March 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.95% | ||||||||||
Long-term debt, gross | $ 1,185 | 1,200 | |||||||||
3.950% Senior notes, semi-annual interest, due March 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 3.95% | ||||||||||
Long-term debt, gross | $ 1,700 | 1,700 | |||||||||
5.000% Senior notes, semi-annual interest, due September 2037 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.00% | ||||||||||
Long-term debt, gross | $ 1,250 | 1,250 | |||||||||
5.200% Senior notes, semi-annual interest, due September 2047 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.20% | ||||||||||
Long-term debt, gross | $ 1,250 | 1,250 | |||||||||
Floating rate notes, quarterly interest, due September 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 400 | 400 | |||||||||
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 | 450 | |||||||||
4.900% Senior notes, semi-annual interest, due March 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 4.90% | ||||||||||
Long-term debt, gross | $ 700 | 700 | |||||||||
5.050% Senior notes, semi-annual interest, due June 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.05% | ||||||||||
Long-term debt, gross | $ 789 | 789 | |||||||||
5.625% Senior notes, semi-annual interest, due August 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.625% | ||||||||||
Long-term debt, gross | $ 411 | 411 | |||||||||
Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance cost | $ 1 | 1 | |||||||||
Loss on extinguishment of debt | 54 | 54 | |||||||||
Payment for debt extinguishment or debt prepayment cost | 50 | 50 | |||||||||
Write off of deferred debt issuance cost | 2 | 2 | |||||||||
Repayments of debt | $ 1 | $ 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 | $ 4 | ||||||||||
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 | 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 | 2.800% Senior notes, semi-annual interest, due June 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 2.80% | 2.80% | |||||||||
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 | $ 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 | $ 507 | $ 543 | £ 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 | ||||||||||
Notes to be redeemed on March 21, 2019 | Scenario, Forecast | Senior Notes | 5.625% Senior notes, semi-annual interest, due August 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percentage of principal amount of notes being redeemed | 100.00% | ||||||||||
Notes to be redeemed on March 21, 2019 | Subsequent Event | Senior Notes | 5.625% Senior notes, semi-annual interest, due August 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 5.625% | ||||||||||
Long-term debt, gross | $ 411 | ||||||||||
Notes to be redeemed on March 21, 2019 | Treasury Rate | Scenario, Forecast | Senior Notes | 5.625% Senior notes, semi-annual interest, due August 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.30% |
Debt (Term Loans) (Details)
Debt (Term Loans) (Details) - USD ($) $ in Billions | Aug. 11, 2017 | Mar. 06, 2018 |
Debt Instrument [Line Items] | ||
Unsecured long-term debt, noncurrent | $ 1 | |
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 (Unsecured Bridge Loan Com
Debt (Unsecured Bridge Loan Commitment) (Details) - Unsecured Bridge Loan | Jul. 30, 2017USD ($) |
Debt Instrument [Line Items] | |
Face amount | $ 9,600,000,000 |
Debt issuance costs, gross | $ 40,000,000 |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Details) | Aug. 11, 2017USD ($)renewalRate | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 10, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||
Long-term debt, gross | $ | $ 17,170,000,000 | $ 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% | |||
Maximum | Step Down 1 | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 500.00% | |||
Maximum | Step Down 2 | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 450.00% | |||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 100.00% | |||
Minimum | Step Down 1 | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 100.00% | |||
Minimum | Step Down 2 | ||||
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 | 3.82% | 2.69% | ||
Revolving credit facility | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt, gross | $ | $ 225,000,000 | $ 425,000,000 | ||
Outstanding borrowings | $ | $ 0 | $ 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 ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Revolving credit facility | Line of Credit | ||
Short-term Debt [Line Items] | ||
Line of credit | $ 0 | $ 0 |
Debt (Program Financing Line of
Debt (Program Financing Line of Credit) (Details) - USD ($) | Dec. 31, 2018 | Jan. 12, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||
Long-term debt, gross | $ 17,170,000,000 | $ 14,913,000,000 | |
Secured Debt | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 26,000,000 | ||
Program financing line of credit | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Long-term debt, gross | $ 22,000,000 | $ 0 |
Debt (Long-term Debt Repayment
Debt (Long-term Debt Repayment Schedule) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Long-term debt repayments | |
2,019 | $ 1,811 |
2,020 | 1,388 |
2,021 | 650 |
2,022 | 1,244 |
2,023 | 1,535 |
Thereafter | $ 10,043 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) $ in Billions | Dec. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 21, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 18, 2018USD ($)instrument | Dec. 18, 2018GBP (£)instrument | Dec. 18, 2018EUR (€)instrument | Dec. 06, 2018USD ($) | Dec. 06, 2018CLP ($) | Oct. 17, 2018USD ($)instrument | Jul. 01, 2018USD ($) | Sep. 21, 2017GBP (£) | Nov. 12, 2015tranche |
Derivative [Line Items] | ||||||||||||||||||
Long-term debt, gross | $ 17,170,000,000 | $ 17,170,000,000 | $ 14,913,000,000 | $ 17,170,000,000 | $ 14,913,000,000 | |||||||||||||
Foreign currency translation loss | 189,000,000 | (183,000,000) | $ 191,000,000 | |||||||||||||||
Amounts eligible to be offset under master netting agreements | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Net deferred gains on derivative instruments expected to be reclassified from AOCI to income in the next 12 months | 10,000,000 | |||||||||||||||||
Sterling Notes | 2.500% Senior Notes | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Long-term debt, gross | $ 540,000,000 | |||||||||||||||||
Debt instrument interest rate | 2.50% | 2.50% | ||||||||||||||||
Designated as Hedging Instrument | Cash Flow Hedging | Other Income (Expense) | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Gains reclassified from accumulated other comprehensive loss | $ 17,000,000 | |||||||||||||||||
Designated as Hedging Instrument | Net investment hedges | Sterling Notes | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Long-term debt, gross | 507,000,000 | $ 543,000,000 | 507,000,000 | 507,000,000 | £ 400,000,000 | |||||||||||||
Foreign currency translation loss | 12,000,000 | |||||||||||||||||
Interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Pretax gain on termination and settlement of derivative contract | $ 40,000,000 | |||||||||||||||||
Interest rate swaps | Not Designated as Hedging Instrument | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | |||||||||||||
Interest rate swaps | Not Designated as Hedging Instrument | Scripps Networks | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | 4,000,000,000 | 4,000,000,000 | ||||||||||||||||
Interest rate swaps | Not Designated as Hedging Instrument | Other Income (Expense) | Scripps Networks | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Gain (loss) upon settlement of derivative | $ (98,000,000) | |||||||||||||||||
Foreign exchange | Designated as Hedging Instrument | Net investment hedges | Discovery Networks SL | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | $ 53,000,000 | $ 35.6 | ||||||||||||||||
Accumulated other comprehensive income (loss), foreign currency translation adjustment | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||||||||
Foreign exchange | Not Designated as Hedging Instrument | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | $ 860,000,000 | |||||||||||||||||
Number of instruments held | instrument | 3 | 3 | 3 | |||||||||||||||
Foreign exchange | Not Designated as Hedging Instrument | DNI Global LLP and Discovery Communications Europe | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | $ 300,000,000 | |||||||||||||||||
Number of instruments held | instrument | 4 | |||||||||||||||||
Foreign exchange | Not Designated as Hedging Instrument | Other Income (Expense) | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Gain (loss) upon settlement of derivative | 11,000,000 | |||||||||||||||||
Foreign exchange | Not Designated as Hedging Instrument | Other Income (Expense) | DNI Global LLP and Discovery Communications Europe | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Gain (loss) upon settlement of derivative | 7,000,000 | |||||||||||||||||
Cross-currency swaps | Designated as Hedging Instrument | Net investment hedges | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | 3,387,000,000 | 3,387,000,000 | 1,708,000,000 | 3,387,000,000 | 1,708,000,000 | |||||||||||||
Accumulated other comprehensive income (loss), foreign currency translation adjustment | (10,000,000) | (10,000,000) | (10,000,000) | |||||||||||||||
Cross-currency swaps | Designated as Hedging Instrument | Net investment hedges | DNI Europe Holdings Limited | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | $ 853,000,000 | € 750,000,000 | ||||||||||||||||
Number of instruments held | instrument | 3 | 3 | 3 | |||||||||||||||
Cross-currency swaps | Designated as Hedging Instrument | Net investment hedges | Discovery Luxembourg Holdings 1 S.A.R.L. | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | $ 853,000,000 | £ 674,000,000 | ||||||||||||||||
Number of instruments held | instrument | 3 | 3 | 3 | |||||||||||||||
Cross-currency swaps | Not Designated as Hedging Instrument | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | 64,000,000 | 64,000,000 | 64,000,000 | 64,000,000 | 64,000,000 | |||||||||||||
Equity (Lionsgate collar) | Designated as Hedging Instrument | Fair Value Hedging | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | 0 | 0 | 97,000,000 | 0 | 97,000,000 | |||||||||||||
Percentage of shares held by Company | 50.00% | |||||||||||||||||
Number of tranches | tranche | 3 | |||||||||||||||||
Equity (Lionsgate collar) | Not Designated as Hedging Instrument | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional amount | $ 97,000,000 | $ 97,000,000 | $ 0 | 97,000,000 | 0 | |||||||||||||
Gain (loss) upon settlement of derivative | $ 29,000,000 | $ 0 | $ 0 | |||||||||||||||
Accounting Standards Update 2017-12 | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Cumulative effect of new accounting principle in period of adoption | $ (87,000,000) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Derivative Instruments, Fair Value) (Details) £ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 21, 2017USD ($) | Sep. 21, 2017GBP (£) |
Derivatives, Fair Value [Line Items] | ||||
Long-term debt, gross | $ 17,170 | $ 14,913 | ||
Prepaid and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 27 | 9 | ||
Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 80 | 16 | ||
Accrued liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | 43 | 33 | ||
Other noncurrent liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | 81 | 105 | ||
Not Designated as Hedging Instrument | Foreign exchange | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 860 | 0 | ||
Not Designated as Hedging Instrument | Foreign exchange | Prepaid and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 0 | ||
Not Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 11 | 0 | ||
Not Designated as Hedging Instrument | Foreign exchange | Accrued liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 0 | 0 | ||
Not Designated as Hedging Instrument | Foreign exchange | 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 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 | 0 | 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 and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 14 | 0 | ||
Not Designated as Hedging Instrument | Equity (Lionsgate collar) | Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 27 | 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 | Interest rate swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 25 | 25 | ||
Not Designated as Hedging Instrument | Interest rate swaps | Prepaid 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 | Credit contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 0 | 665 | ||
Not Designated as Hedging Instrument | Credit contracts | Prepaid 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 | 267 | 817 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Prepaid and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 13 | 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 | 507 | $ 543 | £ 400 | |
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 52 | 303 | ||
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Prepaid 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 | 1 | 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 | 3,387 | 1,708 | ||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Prepaid 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 | 41 | 3 | ||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Accrued liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 39 | 13 | ||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 81 | 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 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 Instrume_5
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign exchange | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in accumulated other comprehensive loss | $ 34 | $ (41) | $ (1) |
Foreign exchange | Distribution | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 9 | (22) | (25) |
Foreign exchange | Advertising | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified into income from accumulated other comprehensive loss | (1) | (3) | (2) |
Foreign exchange | Costs of revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 11 | 0 | 27 |
Foreign exchange | Other income, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 0 | 0 | 3 |
Amount of gain recognized in income on derivative (amount excluded from effectiveness testing) | 0 | 0 | 1 |
Fair value excluded from effectiveness assessment | 0 | 0 | (5) |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in accumulated other comprehensive loss | 0 | 0 | 40 |
Interest rate swaps | Other income, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain recognized in income on derivative (amount excluded from effectiveness testing) | 0 | 17 | 0 |
Interest rate swaps | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified into income from accumulated other comprehensive loss | $ 0 | $ (1) | $ (3) |
Derivative Financial Instrume_6
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Amount of gain (loss) recognized in AOCI | $ 73 | $ (112) | $ 3 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 14 | 0 | 0 |
Sterling Notes | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in AOCI | 30 | 2 | 0 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 0 | 0 | 0 |
Cross-currency swaps | Interest expense, net | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in AOCI | 43 | (96) | 3 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 14 | 0 | 0 |
Foreign exchange | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in AOCI | 0 | (18) | 0 |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Schedule of Pre-Tax Impact of Items Designated as Fair Value Hedges) (Details) - Equity contract - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other expense, net | ||
Derivative [Line Items] | ||
Total in other income (expense), net | $ 6 | $ (7) |
Fair Value Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gains (losses) on changes in fair value of hedged AFS | 18 | (17) |
(Losses) gains on changes in the intrinsic value of equity contracts | (17) | 16 |
Fair value of equity contracts excluded from effectiveness assessment | $ 5 | $ (6) |
Derivative Financial Instrume_8
Derivative Financial Instruments (Schedule of Pre-Tax Impact of Items not Designated as Hedges) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total in other expense, net | $ 50 | $ (105) | $ (1) |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total in other expense, net | 0 | (98) | 0 |
Cross-currency swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total in other expense, net | 4 | (6) | 0 |
Foreign exchange | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total in other expense, net | 18 | 0 | (1) |
Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total in other expense, net | (1) | (1) | 0 |
Equity contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total in other expense, net | $ 29 | $ 0 | $ 0 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Schedule of Redeemable Noncontrolling Interest Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 25, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable noncontrolling interest balance | $ 415 | $ 413 | $ 243 | $ 241 | |
OWN | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable noncontrolling interest balance | 58 | 56 | |||
MTG | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable noncontrolling interest balance | 121 | 120 | $ 120 | ||
Discovery Family | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable noncontrolling interest balance | 206 | 210 | |||
Discovery Japan | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable noncontrolling interest balance | $ 30 | $ 27 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests (Schedule of Changes in Redeemable Noncontrolling Interest) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Temporary Equity | |||
Beginning balance | $ 413 | $ 243 | $ 241 |
Initial fair value of redeemable noncontrolling interests of acquired businesses | 0 | 137 | 0 |
Cash distributions to redeemable noncontrolling interests | (25) | (30) | (22) |
Comprehensive income (loss) adjustments: | |||
Net income attributable to redeemable noncontrolling interests | 20 | 24 | 23 |
Other comprehensive earnings attributable to redeemable noncontrolling interests | 0 | 1 | 0 |
Currency translation on redemption values | 2 | 0 | 1 |
Retained earnings adjustments: | |||
Adjustments to redemption value | 3 | 38 | 0 |
Interest adjustment | 2 | 0 | 0 |
Ending balance | $ 415 | $ 413 | $ 243 |
Redeemable Noncontrolling Int_5
Redeemable Noncontrolling Interests (Narrative) (Details) $ in Millions | Nov. 06, 2018 | Nov. 30, 2017window | Sep. 25, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interest balance | $ 415 | $ 413 | $ 243 | $ 241 | |||
OWN | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interest balance | 58 | 56 | |||||
MTG | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interest balance | $ 120 | 121 | 120 | ||||
Terms of put arrangement | 30 days | ||||||
Post-acquisition ownership percentage of the acquiror in the combined entity | 67.50% | ||||||
MTG | GoldenTree Asset Management L.P. | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Post-acquisition ownership percentage of the acquiror in the combined entity | 32.50% | ||||||
Discovery Family | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interest balance | $ 206 | 210 | |||||
Terms of put arrangement | 1 year | ||||||
Ownership percentage by noncontrolling owners | 40.00% | ||||||
Discovery Japan | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable noncontrolling interest balance | $ 30 | $ 27 | |||||
Ownership percentage by noncontrolling owners | 20.00% | ||||||
Subsequent Acquisition, Window One | Harpo | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Step acquisition, subsequent acquisition, number of window | window | 4 | ||||||
Step acquisition, subsequent acquisition, term of window | 90 days | ||||||
Subsequent Acquisition, Window Two | Harpo | |||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||
Step acquisition, subsequent acquisition, term of window | 2 years 6 months | 2 years 6 months | |||||
Step acquisition, put option redemption premium | 9.337% |
Equity (Common Stock) (Details)
Equity (Common Stock) (Details) | Mar. 06, 2018shares | Dec. 31, 2018sharesvotesseries | Feb. 13, 2014shares |
Class of Stock [Line Items] | |||
Class of warrant or right, unissued (in shares) | 6,000,000 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Number of series of stock | series | 3 | ||
Series A Common Stock | |||
Class of Stock [Line Items] | |||
Voting rights, number of votes | votes | 1 | ||
Series B Common Stock | |||
Class of Stock [Line Items] | |||
Voting rights, number of votes | votes | 10 | ||
Conversion option (in shares) | 1 | ||
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 (Repurchase Programs) (D
Equity (Repurchase Programs) (Details) | Aug. 07, 2017USD ($) | Mar. 15, 2017USD ($) | Dec. 02, 2016USD ($)$ / sharesshares | Dec. 31, 2018USD ($)series$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Mar. 06, 2018USD ($) | Aug. 06, 2017USD ($)directorshares |
Class of Stock [Line Items] | ||||||||
Shares repurchased (in shares) | shares | 0 | |||||||
Treasury stock repurchased to date (in shares) | shares | 167,000,000 | 167,000,000 | ||||||
Treasury stock repurchased to date, value | $ 6,737,000,000 | $ 6,737,000,000 | ||||||
Repurchases of stock | $ 0 | $ 603,000,000 | $ 1,374,000,000 | |||||
Price paid per share, percentage of average price paid multiplied by conversion rate | 99.00% | |||||||
Anti-dilutive common stock repurchase contracts (in shares) | shares | 0 | 0 | 2,000,000 | |||||
Advance Newhouse | ||||||||
Class of Stock [Line Items] | ||||||||
Number of elected directors | director | 3 | |||||||
Preferred stock, fair value, increase due to modification, amount | $ 35,000,000 | |||||||
Preferred stock, fair value | $ 3,375,000,000 | $ 3,340,000,000 | ||||||
Preferred stock, fair value, increase due to modification, percent | 1.05% | |||||||
Scripps Networks | ||||||||
Class of Stock [Line Items] | ||||||||
Transaction costs | $ 117,000,000 | |||||||
Scripps Networks | Advance Newhouse | ||||||||
Class of Stock [Line Items] | ||||||||
Transaction costs | $ 35,000,000 | |||||||
Series A Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Treasury stock repurchased to date (in shares) | shares | 3,000,000 | |||||||
Treasury stock repurchased to date, value | $ 171,000,000 | |||||||
Shares issued upon conversion (in shares) | shares | 1 | |||||||
Series C Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Shares repurchased (in shares) | shares | 14,300,000 | 34,800,000 | ||||||
Treasury stock repurchased to date (in shares) | shares | 164,000,000 | |||||||
Treasury stock repurchased to date, value | $ 6,600,000,000 | |||||||
Repurchases of stock | $ 381,000,000 | $ 895,000,000 | ||||||
Shares issued upon conversion (in shares) | shares | 1 | |||||||
Cash settlement amount common stock repurchase contract | $ 58,000,000 | |||||||
Prepaid repurchase of common stock | $ 57,000,000 | |||||||
Cash premium received common stock repurchase contract | $ 1,000,000 | |||||||
Stock repurchase contract, prepaid notional contract value | $ 71,000,000 | |||||||
Stock repurchase contract, prepaid notional contract value | $ 71,000,000 | |||||||
Stock repurchase contract, strike price (in dollars per share) | $ / shares | $ 25.86 | |||||||
Anti-dilutive common stock repurchase contracts (in shares) | shares | 2,800,000 | |||||||
Prepaid stock repurchase contract value | $ 75,000,000 | |||||||
Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of series of stock | series | 2 | |||||||
Series A-1 Convertible Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock authorized (in shares) | shares | 8,000,000 | 8,000,000 | ||||||
Series C-1 Convertible Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Shares repurchased (in shares) | shares | 200,000 | |||||||
Preferred stock authorized (in shares) | shares | 6,000,000 | 6,000,000 | ||||||
Payments for repurchase of stock | $ 102,000,000 | |||||||
Series A-1 Convertible Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Required ownership percentage to retain special voting rights | 80.00% | |||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 0.01 | |||||||
Series A-1 Convertible Preferred Stock | Advance Newhouse | ||||||||
Class of Stock [Line Items] | ||||||||
Required ownership percentage to retain special voting rights | 80.00% | |||||||
Series C Convertible Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Shares repurchased (in shares) | shares | 2,300,000 | |||||||
Payments for repurchase of stock | $ 120,000,000 | |||||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Shares repurchased (in shares) | shares | 0 |
Equity (Schedule of Convertible
Equity (Schedule of Convertible Preferred Stock and Preferred Stock Modification) (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 06, 2017 |
Series A Common Stock | |||
Class of Stock [Line Items] | |||
Converts into Common Stock (in shares) | 1 | ||
Series C Common Stock | |||
Class of Stock [Line Items] | |||
Converts into Common Stock (in shares) | 1 | ||
Series A-1 Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares Held Prior to the Amendment (in shares) | 8,000,000 | 8,000,000 | |
Shares Issued Subsequent to the Amendment (in shares) | 8,000,000 | 8,000,000 | |
Series C-1 Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares Held Prior to the Amendment (in shares) | 6,000,000 | 6,000,000 | |
Shares Issued Subsequent to the Amendment (in shares) | 6,000,000 | 6,000,000 | |
Series A Preferred Stock Conversion | Series A Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares Held Prior to the Amendment (in shares) | 70,673,242 | ||
Series A Preferred Stock Conversion | Series A Common Stock | |||
Class of Stock [Line Items] | |||
Converts into Common Stock (in shares) | 70,673,242 | ||
Series A Preferred Stock Conversion | Series C Common Stock | |||
Class of Stock [Line Items] | |||
Converts into Common Stock (in shares) | 70,673,242 | ||
Series A-1 Preferred Stock Conversion | Series A Common Stock | |||
Class of Stock [Line Items] | |||
Converts into Common Stock (in shares) | 70,673,242 | ||
Series A-1 Preferred Stock Conversion | Series A-1 Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares Issued Subsequent to the Amendment (in shares) | 7,852,582 | ||
Series C Preferred Stock Conversion | Series C Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares Held Prior to the Amendment (in shares) | 24,874,370 | ||
Series C Preferred Stock Conversion | Series C Common Stock | |||
Class of Stock [Line Items] | |||
Converts into Common Stock (in shares) | 49,748,740 | ||
Series C-1 Preferred Stock Conversion | Series C Common Stock | |||
Class of Stock [Line Items] | |||
Converts into Common Stock (in shares) | 70,673,242 | ||
Series C-1 Preferred Stock Conversion | Series C-1 Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares Issued Subsequent to the Amendment (in shares) | 3,649,573 | ||
Conversion Of Stock, Series C-1 Preferred Stock Conversion, Conversion 2 | Series C Common Stock | |||
Class of Stock [Line Items] | |||
Converts into Common Stock (in shares) | 49,748,740 | ||
Conversion Of Stock, Series C-1 Preferred Stock Conversion, Conversion 2 | Series C-1 Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares Issued Subsequent to the Amendment (in shares) | 2,569,020 |
Equity (Other Comprehensive Inc
Equity (Other Comprehensive Income (Loss) Adjustments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Unrealized (losses) gains, Net-of-tax | $ (164) | $ 175 | $ (194) |
Reclassifications, Net-of-tax | (10) | 3 | 65 |
Other comprehensive (loss) income | (174) | 177 | (129) |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
Derivative [Line Items] | |||
Other comprehensive (loss) income, Pretax | (165) | 166 | (148) |
Other comprehensive (loss) income, Tax Benefit (Expense) | (9) | 12 | 19 |
Other comprehensive (loss) income | (174) | 178 | (129) |
Currency Translation Adjustments | |||
Derivative [Line Items] | |||
Unrealized (losses) gains, Net-of-tax | (193) | 171 | (191) |
Reclassifications, Net-of-tax | 4 | 12 | 0 |
Other comprehensive (loss) income, Pretax | (183) | 180 | (231) |
Other comprehensive (loss) income, Tax Benefit (Expense) | (6) | 3 | 40 |
Other comprehensive (loss) income | (189) | 183 | (191) |
Currency Translation Adjustments | Gain on disposition | |||
Derivative [Line Items] | |||
Reclassifications, Pretax | 4 | 12 | 0 |
Reclassifications, Tax Benefit (Expense) | 0 | 0 | 0 |
Reclassifications, Net-of-tax | 4 | 12 | 0 |
Currency Translation Adjustments | Foreign exchange | |||
Derivative [Line Items] | |||
Unrealized (losses) gains, Pretax | (246) | 280 | (234) |
Unrealized (losses) gains, Tax Benefit (Expense) | (6) | 3 | 41 |
Unrealized (losses) gains, Net-of-tax | (252) | 283 | (193) |
Currency Translation Adjustments | Net investment hedges | |||
Derivative [Line Items] | |||
Unrealized (losses) gains, Pretax | 59 | (112) | 3 |
Unrealized (losses) gains, Tax Benefit (Expense) | 0 | 0 | (1) |
Unrealized (losses) gains, Net-of-tax | 59 | (112) | 2 |
AFS adjustments | |||
Derivative [Line Items] | |||
Unrealized (losses) gains, Pretax | 0 | 36 | (34) |
Unrealized (losses) gains, Tax Benefit (Expense) | 0 | (6) | 6 |
Unrealized (losses) gains, Net-of-tax | 0 | 30 | (28) |
Reclassifications, Net-of-tax | 0 | (15) | 66 |
Other comprehensive (loss) income, Pretax | 0 | 18 | 45 |
Other comprehensive (loss) income, Tax Benefit (Expense) | 0 | (3) | (7) |
Other comprehensive (loss) income | 0 | 15 | 38 |
Other-than-temporary-impairment AFS securities | Other (expense) income, net | |||
Derivative [Line Items] | |||
Reclassifications, Pretax | 0 | 0 | 62 |
Reclassifications, Tax Benefit (Expense) | 0 | 0 | (10) |
Reclassifications, Net-of-tax | 0 | 0 | 52 |
Hedged portion of AFS securities | Other (expense) income, net | |||
Derivative [Line Items] | |||
Reclassifications, Pretax | 0 | (18) | 17 |
Reclassifications, Tax Benefit (Expense) | 0 | 3 | (3) |
Reclassifications, Net-of-tax | 0 | (15) | 14 |
Derivative Adjustments | |||
Derivative [Line Items] | |||
Unrealized (losses) gains, Pretax | 34 | (41) | 39 |
Unrealized (losses) gains, Tax Benefit (Expense) | (8) | 15 | (14) |
Unrealized (losses) gains, Net-of-tax | 26 | (26) | 25 |
Reclassifications, Net-of-tax | (14) | 6 | (1) |
Other comprehensive (loss) income, Pretax | 15 | (32) | 38 |
Other comprehensive (loss) income, Tax Benefit (Expense) | (3) | 12 | (14) |
Other comprehensive (loss) income | 12 | (20) | 24 |
Derivative Adjustments | Other (expense) income, net | |||
Derivative [Line Items] | |||
Reclassifications, Pretax | 0 | (17) | (4) |
Reclassifications, Tax Benefit (Expense) | 0 | 6 | 1 |
Reclassifications, Net-of-tax | 0 | (11) | (3) |
Derivative Adjustments | Distribution revenue | |||
Derivative [Line Items] | |||
Reclassifications, Pretax | (9) | 22 | 25 |
Reclassifications, Tax Benefit (Expense) | 2 | (8) | (7) |
Reclassifications, Net-of-tax | (7) | 14 | 18 |
Derivative Adjustments | Advertising | |||
Derivative [Line Items] | |||
Reclassifications, Pretax | 1 | 3 | 2 |
Reclassifications, Tax Benefit (Expense) | 0 | (1) | 0 |
Reclassifications, Net-of-tax | 1 | 2 | 2 |
Derivative Adjustments | Costs of revenues | |||
Derivative [Line Items] | |||
Reclassifications, Pretax | (11) | 0 | (27) |
Reclassifications, Tax Benefit (Expense) | 3 | 0 | 7 |
Reclassifications, Net-of-tax | (8) | 0 | (20) |
Derivative Adjustments | Interest expense | |||
Derivative [Line Items] | |||
Reclassifications, Pretax | 0 | 1 | 3 |
Reclassifications, Tax Benefit (Expense) | 0 | 0 | (1) |
Reclassifications, Net-of-tax | 0 | 1 | 2 |
Pension Plan and SERP Liability | |||
Derivative [Line Items] | |||
Unrealized (losses) gains, Pretax | 3 | 0 | 0 |
Unrealized (losses) gains, Tax Benefit (Expense) | 0 | 0 | 0 |
Unrealized (losses) gains, Net-of-tax | 3 | 0 | 0 |
Reclassifications, Net-of-tax | 0 | 0 | 0 |
Other comprehensive (loss) income, Pretax | 3 | 0 | 0 |
Other comprehensive (loss) income, Tax Benefit (Expense) | 0 | 0 | 0 |
Other comprehensive (loss) income | $ 3 | $ 0 | $ 0 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 4,610 | $ 5,167 | $ 5,451 | |
Other comprehensive (loss) income before reclassifications | (164) | 175 | (194) | |
Reclassifications from accumulated other comprehensive loss to net income | (10) | 3 | 65 | |
Other comprehensive (loss) income | (174) | 178 | (129) | |
Other comprehensive loss attributable to redeemable noncontrolling interests | (1) | |||
Ending balance | 10,102 | 4,610 | 5,167 | |
Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 | (26) | |||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (585) | (762) | (633) | |
Ending balance | (785) | (585) | (762) | |
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 | $ 26 | |||
Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (615) | (797) | (606) | |
Other comprehensive (loss) income before reclassifications | (193) | 171 | (191) | |
Reclassifications from accumulated other comprehensive loss to net income | 4 | 12 | 0 | |
Other comprehensive (loss) income | (189) | 183 | (191) | |
Other comprehensive loss attributable to redeemable noncontrolling interests | (1) | |||
Ending balance | (804) | (615) | (797) | |
Currency Translation Adjustments | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 | 0 | |||
AFS adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 26 | 11 | (27) | |
Other comprehensive (loss) income before reclassifications | 0 | 30 | (28) | |
Reclassifications from accumulated other comprehensive loss to net income | 0 | (15) | 66 | |
Other comprehensive (loss) income | 0 | 15 | 38 | |
Other comprehensive loss attributable to redeemable noncontrolling interests | 0 | |||
Ending balance | 0 | 26 | 11 | |
AFS adjustments | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 | (26) | |||
Derivative Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 4 | 24 | 0 | |
Other comprehensive (loss) income before reclassifications | 26 | (26) | 25 | |
Reclassifications from accumulated other comprehensive loss to net income | (14) | 6 | (1) | |
Other comprehensive (loss) income | 12 | (20) | 24 | |
Other comprehensive loss attributable to redeemable noncontrolling interests | 0 | |||
Ending balance | 16 | 4 | 24 | |
Derivative Adjustments | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 | 0 | |||
Pension Plan and SERP Liability | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 0 | 0 | 0 | |
Other comprehensive (loss) income before reclassifications | 3 | 0 | 0 | |
Reclassifications from accumulated other comprehensive loss to net income | 0 | 0 | 0 | |
Other comprehensive (loss) income | 3 | 0 | 0 | |
Other comprehensive loss attributable to redeemable noncontrolling interests | 0 | |||
Ending balance | $ 3 | 0 | $ 0 | |
Pension Plan and SERP Liability | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 | $ 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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 2,809 | $ 2,592 | $ 2,845 | $ 2,307 | $ 1,864 | $ 1,651 | $ 1,745 | $ 1,613 | $ 10,553 | $ 6,873 | $ 6,497 |
Distribution | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 4,538 | 3,474 | 3,213 | ||||||||
Advertising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 5,514 | 3,073 | 2,970 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 501 | 326 | 314 | ||||||||
Operating Segments | U.S. Networks | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,350 | 3,434 | 3,285 | ||||||||
Operating Segments | U.S. Networks | Distribution | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,456 | 1,612 | 1,532 | ||||||||
Operating Segments | U.S. Networks | Advertising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 3,749 | 1,740 | 1,690 | ||||||||
Operating Segments | U.S. Networks | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 145 | 82 | 63 | ||||||||
Operating Segments | International Networks | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 4,149 | 3,281 | 3,040 | ||||||||
Operating Segments | International Networks | Distribution | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,082 | 1,862 | 1,681 | ||||||||
Operating Segments | International Networks | Advertising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,765 | 1,332 | 1,279 | ||||||||
Operating Segments | International Networks | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 302 | 87 | 80 | ||||||||
Operating Segments | Education and Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 54 | 158 | 174 | ||||||||
Operating Segments | Education and Other | Distribution | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Education and Other | Advertising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 1 | 1 | ||||||||
Operating Segments | Education and Other | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 54 | 157 | 173 | ||||||||
Corporate and inter-segment eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | (2) | ||||||||
Corporate and inter-segment eliminations | Distribution | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Corporate and inter-segment eliminations | Advertising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Corporate and inter-segment eliminations | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 0 | $ 0 | $ (2) |
Revenues (Transaction Price All
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 | Dec. 31, 2018USD ($) |
Distribution | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,700 |
Remaining performance obligations, expected timing of satisfaction, period | 9 years |
Content Licensing Contracts | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 511 |
Remaining performance obligations, expected timing of satisfaction, period | 6 years |
Brand Licensing Contracts | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 86 |
Remaining performance obligations, expected timing of satisfaction, period | 14 years |
Revenues (Contract Balances) (D
Revenues (Contract Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2018 | Mar. 06, 2018 | Nov. 30, 2017 | Sep. 25, 2017 | Apr. 28, 2017 | |
Accounts receivable | |||||||
Beginning of period | $ 1,838 | $ 1,495 | |||||
Additions | 11,321 | 7,074 | |||||
Reductions | (10,527) | (6,747) | |||||
Foreign Currency | (12) | 16 | |||||
End of period | 2,620 | 1,838 | |||||
Deferred revenues, Current: | |||||||
Beginning of period | 255 | 163 | |||||
Additions | 1,378 | 936 | |||||
Reductions | (1,371) | (875) | |||||
Foreign Currency | (13) | 31 | |||||
End of period | 249 | 255 | |||||
Deferred revenues, Long term: | |||||||
Beginning of period | 109 | 122 | |||||
Additions | 38 | 26 | |||||
Reductions | (27) | (43) | |||||
Foreign Currency | 0 | 4 | |||||
End of period | 120 | 109 | |||||
Accounts receivable | $ 1,838 | $ 1,495 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Education Business | |||||||
Deferred revenues, Long term: | |||||||
Accounts receivable | $ 32 | ||||||
Deferred revenue balance | $ 74 | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Raw and Betty businesses | |||||||
Deferred revenues, Long term: | |||||||
Accounts receivable | $ 6 | ||||||
Deferred revenue balance | $ 17 | ||||||
Scripps Networks | |||||||
Deferred revenues, Long term: | |||||||
Accounts receivable | $ 783 | ||||||
Deferred revenue balance | $ 122 | ||||||
Harpo | |||||||
Deferred revenues, Long term: | |||||||
Accounts receivable | $ 84 | ||||||
Deferred revenue balance | $ 5 | ||||||
TEN | |||||||
Deferred revenues, Long term: | |||||||
Deferred revenue balance | $ 8 |
Share-based Compensation (Incen
Share-based Compensation (Incentive Plans) (Details) - Series A and Series C common stock shares in Millions | Dec. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized (in shares) | 123 |
Shares available for grant (in shares) | 83 |
Share-based Compensation (Share
Share-based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 80 | $ 39 | $ 69 |
Tax benefit recognized | 13 | 9 | 25 |
Liability-classified share-based compensation award liability | 54 | 47 | |
Current portion of liability-classified share-based compensation award liability | 23 | 12 | |
PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 24 | 6 | 34 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 27 | 23 | 17 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 22 | 12 | 13 |
SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 8 | (3) | 4 |
ESPP and other | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ (1) | $ 1 | $ 1 |
Share-based Compensation (Sha_2
Share-based Compensation (Share-Based Award Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
PRSUs | ||
Awards | ||
Outstanding as of December 31, 2017 (in shares) | 3.5 | |
Granted (in shares) | 0.6 | |
Converted (in shares) | (1.1) | |
Forfeited (in shares) | (0.1) | |
Outstanding as of December 31, 2018 (in shares) | 2.9 | 3.5 |
Vested and expected to vest as of December 31, 2018 (in shares) | 2.9 | |
Convertible as of December 31, 2018 (in shares) | 0.5 | |
Weighted- Average Grant Date Fair Value | ||
Outstanding as of December 31, 2017 (in dollars per share) | $ 33.41 | |
Granted (in dollars per share) | 24.06 | |
Converted (in dollars per share) | 40.21 | |
Forfeited (in dollars per share) | 26.98 | |
Outstanding as of December 31, 2018 (in dollars per share) | 28.98 | $ 33.41 |
Vested and expected to vest as of December 31, 2018 (in dollars per share) | 28.98 | |
Convertible as of December 31, 2018 (in dollars per share) | $ 39.96 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding as of December 31, 2018 | 292 days | 329 days |
Vested and expected to vest as of December 31, 2018 | 292 days | |
Convertible as of December 31, 2018 | 0 years | |
Aggregate Fair Value | ||
Converted | $ 25 | |
Outstanding as of December 31, 2018 | 69 | $ 76 |
Vested and expected to vest as of December 31, 2018 | 69 | |
Convertible as of December 31, 2018 | $ 13 | |
RSUs | ||
Awards | ||
Outstanding as of December 31, 2017 (in shares) | 3.4 | |
Granted (in shares) | 3.6 | |
Converted (in shares) | (1.2) | |
Forfeited (in shares) | (0.9) | |
Outstanding as of December 31, 2018 (in shares) | 4.9 | 3.4 |
Vested and expected to vest as of December 31, 2018 (in shares) | 4.9 | |
Weighted- Average Grant Date Fair Value | ||
Outstanding as of December 31, 2017 (in dollars per share) | $ 28.78 | |
Granted (in dollars per share) | 23.85 | |
Converted (in dollars per share) | 26.68 | |
Forfeited (in dollars per share) | 27.38 | |
Outstanding as of December 31, 2018 (in dollars per share) | 25.95 | $ 28.78 |
Vested and expected to vest as of December 31, 2018 (in dollars per share) | $ 25.95 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding as of December 31, 2018 | 2 years 219 days | 2 years 219 days |
Vested and expected to vest as of December 31, 2018 | 2 years 219 days | |
Aggregate Fair Value | ||
Converted | $ 30 | |
Outstanding as of December 31, 2018 | 120 | $ 77 |
Vested and expected to vest as of December 31, 2018 | $ 120 | |
SARs | ||
Awards | ||
Outstanding as of December 31, 2017 (in shares) | 7.7 | |
Granted (in shares) | 3.7 | |
Settled (in shares) | (0.1) | |
Forfeited (in shares) | (3.7) | |
Outstanding as of December 31, 2018 (in shares) | 7.6 | 7.7 |
Vested and expected to vest as of December 31, 2018 (in shares) | 7.6 | |
Weighted- Average Grant Date Fair Value | ||
Outstanding as of December 31, 2017 (in dollars per share) | $ 31.58 | |
Granted (in dollars per share) | 22.37 | |
Settled (in dollars per share) | 26.80 | |
Forfeited (in dollars per share) | 35.75 | |
Outstanding as of December 31, 2018 (in dollars per share) | 25.10 | $ 31.58 |
Vested and expected to vest as of December 31, 2018 (in dollars per share) | $ 25.10 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding as of December 31, 2018 | 1 year 73 days | 1 year |
Vested and expected to vest as of December 31, 2018 | 1 year 73 days | |
Aggregate Fair Value | ||
Settled | $ 0 | |
Outstanding as of December 31, 2018 | 6 | $ 0 |
Vested and expected to vest as of December 31, 2018 | $ 6 |
Share-based Compensation (PRSUs
Share-based Compensation (PRSUs) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance target | 3 years |
Vesting range, minimum percentage | 0.00% |
Vesting range, maximum percentage | 100.00% |
Share-based performance target, percentage | 80.00% |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 16 |
Weighted-average amortization period | 1 year |
PRSUs | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
PRSUs | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Share-based Compensation (RSUs)
Share-based Compensation (RSUs) (Details) - RSUs $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 78 |
Weighted-average amortization period | 2 years 248 days |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Share-based Compensation (Stock
Share-based Compensation (Stock Options Activity) (Details) - Stock options - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options | |||
Outstanding as of December 31, 2017 (in shares) | 12.3 | ||
Granted (in shares) | 15.1 | ||
Exercised (in shares) | (3.9) | ||
Forfeited (in shares) | (2.4) | ||
Outstanding as of December 31, 2018 (in shares) | 21.1 | 12.3 | |
Vested and expected to vest as of December 31, 2018 (in shares) | 21.1 | ||
Exercisable as of December 31, 2018 (in shares) | 5.1 | ||
Weighted Average Exercise Price | |||
Outstanding as of December 31, 2017 (in dollars per share) | $ 27.46 | ||
Granted (in dollars per share) | 27.51 | ||
Exercised (in dollars per share) | 18.14 | ||
Forfeited (in dollars per share) | 30.47 | ||
Outstanding as of December 31, 2018 (in dollars per share) | 28.86 | $ 27.46 | |
Weighted Average Exercise Price, Vested and expected to vest as of December 31, 2018 (in dollars per share) | 28.86 | ||
Weighted Average Exercise Price, Exercisable as of December 31, 2018 (in dollars per share) | $ 29.92 | ||
Weighted Average Remaining Contractual Term, Outstanding as of December 31, 2018 | 5 years 110 days | 3 years 183 days | |
Weighted Average Remaining Contractual Term, Vested and expected to vest as of December 31, 2018 | 5 years 110 days | ||
Weighted Average Remaining Contractual Term, Exercisable as of December 31, 2018 | 2 years 201 days | ||
Aggregate Intrinsic Value, Exercised | $ 30 | $ 26 | $ 42 |
Aggregate Intrinsic Value, Outstanding as of December 31, 2018 | 9 | $ 14 | |
Aggregate Intrinsic Value, Vested and expected to vest as of December 31, 2018 | 9 | ||
Aggregate Intrinsic Value, Exercisable as of December 31, 2018 | $ 7 | ||
Scripps Networks | |||
Stock Options | |||
Granted (in shares) | 2 |
Share-based Compensation (Sto_2
Share-based Compensation (Stock Options) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from stock options exercised | $ 68 | $ 42 | $ 46 |
Grants in period, weighted average grant date fair value (in dollars per share) | $ 7.95 | $ 7.99 | $ 7.09 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 107 | ||
Weighted-average amortization period | 3 years 245 days | ||
Exercises in period, intrinsic value | $ 30 | $ 26 | $ 42 |
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Expiration period | 7 years | ||
Stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Expiration period | 10 years |
Share-based Compensation (Weigh
Share-based Compensation (Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.74% | 1.87% | 1.26% |
Expected term (years) | 5 years 183 days | 5 years | 5 years |
Expected volatility | 29.57% | 27.52% | 28.74% |
Dividend yield | 0.00% | 0.00% | 0.00% |
SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.53% | 1.74% | 0.95% |
Expected term (years) | 1 year 71 days | 1 year | 326 days |
Expected volatility | 36.52% | 31.37% | 29.46% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Share-based Compensation (SARs)
Share-based Compensation (SARs) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value outstanding (in dollars per share) | $ 3.31 | $ 1.01 | |
SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee service share-based compensation, cash flow effect, cash used to settle awards | $ 0 | $ 1,000,000 | $ 5,000,000 |
Unrecognized compensation cost | $ 13,000,000 | ||
Weighted-average amortization period | 1 year 37 days |
Share-based Compensation (Emplo
Share-based Compensation (Employee Stock Purchase Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Series A and Series C common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 123,000,000 | ||
ESPP and other | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of common stock closing price for purchase price | 85.00% | ||
Shares authorized (in shares) | 9,000,000 | ||
Shares issued in period (in shares) | 133,000 | 179,000 | 191,000 |
Proceeds from issuance of shares | $ 3 | $ 4 | $ 4 |
Retirement Savings Plans (Defin
Retirement Savings Plans (Defined Contribution Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions | $ 41 | $ 30 | $ 29 |
TVN | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions | $ 3 |
Retirement Savings Plans (Compo
Retirement Savings Plans (Components of Net Funded Status) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Interest cost | $ 3 |
Expected return on plan assets, net of expenses | (4) |
Settlement charges | 0 |
Net periodic pension cost | (1) |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Interest cost | 1 |
Expected return on plan assets, net of expenses | 0 |
Settlement charges | (2) |
Net periodic pension cost | $ (1) |
Retirement Savings Plans (Pensi
Retirement Savings Plans (Pension Plan and SERP) (Details) | 10 Months Ended | 12 Months Ended |
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Company contributions | $ 21,000,000 | $ 21,000,000 |
Benefit payments | 8,000,000 | |
Anticipated contributions in the next twelve months | 0 | 0 |
Pension Plan | Underfunded Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Company contributions | 3,000,000 | |
SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Company contributions | 32,000,000 | |
Benefit payments | 31,000,000 | 32,000,000 |
Anticipated contributions in the next twelve months | $ 8,000,000 | $ 8,000,000 |
Retirement Savings Plans (Assum
Retirement Savings Plans (Assumptions Used in Determining Pension Plan and SERP Expense) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Discount rate | 3.84% |
Long-term rate of return on plan assets | 7.50% |
Rate of compensation increases | 3.57% |
Pension Plan | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Long-term rate of return on plan assets, term | 10 years |
Pension Plan | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Long-term rate of return on plan assets, term | 15 years |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Discount rate | 3.41% |
Rate of compensation increases | 3.21% |
Retirement Savings Plans (Oblig
Retirement Savings Plans (Obligations and Funded Status) (Details) $ in Millions | 10 Months Ended | 12 Months Ended |
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 81 | $ 81 |
Change in projected benefit obligation: | ||
Projected benefit obligation at beginning of year | 96 | |
Interest cost | 3 | |
Benefits paid | (1) | |
Actuarial gains | (5) | |
Curtailments | (1) | |
Settlement charges | (8) | |
Projected benefit obligation at end of year | 84 | 84 |
Plan assets: | ||
Fair value at beginning of year | 60 | |
Actual return on plan assets | (2) | |
Company contributions | 21 | 21 |
Benefits paid | (1) | |
Settlement charges | (8) | |
Fair value at end of year | 70 | 70 |
Underfunded status | (14) | (14) |
Amounts recognized as assets and liabilities in the consolidated balance sheets: | ||
Current liabilities | 0 | 0 |
Non-current liabilities | (14) | (14) |
Total | (14) | (14) |
Amounts recognized in accumulated other comprehensive loss consist of: | ||
Net gain | 0 | 0 |
SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | 24 | 24 |
Change in projected benefit obligation: | ||
Projected benefit obligation at beginning of year | 62 | |
Interest cost | 1 | |
Benefits paid | 0 | |
Actuarial gains | (5) | |
Curtailments | 0 | |
Settlement charges | (32) | |
Projected benefit obligation at end of year | 26 | 26 |
Plan assets: | ||
Fair value at beginning of year | 0 | |
Actual return on plan assets | 0 | |
Company contributions | 32 | |
Benefits paid | 0 | |
Settlement charges | (31) | (32) |
Fair value at end of year | 0 | 0 |
Underfunded status | (26) | (26) |
Amounts recognized as assets and liabilities in the consolidated balance sheets: | ||
Current liabilities | (7) | (7) |
Non-current liabilities | (19) | (19) |
Total | (26) | (26) |
Amounts recognized in accumulated other comprehensive loss consist of: | ||
Net gain | $ (3) | $ (3) |
Retirement Savings Plans (Chang
Retirement Savings Plans (Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss (gain) | $ 1 |
Curtailments | (1) |
Settlement charges | 0 |
Total recognized in other comprehensive (income) loss | 0 |
Net periodic benefit cost | (1) |
Total recognized in net periodic benefit cost and other comprehensive loss | (1) |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss (gain) | (5) |
Curtailments | 0 |
Settlement charges | 2 |
Total recognized in other comprehensive (income) loss | (3) |
Net periodic benefit cost | (1) |
Total recognized in net periodic benefit cost and other comprehensive loss | $ (4) |
Retirement Savings Plans (Benef
Retirement Savings Plans (Benefit Obligations in Excess of Fair Value of Plan Assets) (Details) | Dec. 31, 2018 |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Discount rate | 3.93% |
Rate of compensation increases | 3.23% |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Discount rate | 3.77% |
Rate of compensation increases | 2.89% |
Retirement Savings Plans (Plan
Retirement Savings Plans (Plan Assets) (Details) - Pension Plan | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocations for 2019 | 100.00% |
Actual allocations | 100.00% |
Debt securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocations for 2019 | 90.00% |
Actual allocations | 89.00% |
U.S. equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocations for 2019 | 10.00% |
Actual allocations | 8.00% |
Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocations for 2019 | 0.00% |
Actual allocations | 3.00% |
Retirement Savings Plans (Fair
Retirement Savings Plans (Fair Value Measurements) (Details) - Fair Value, Measurements, Recurring $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | $ 70 |
Level 1 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 70 |
Level 2 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 0 |
Level 3 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 0 |
U.S. equity securities - Mutual funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 62 |
U.S. equity securities - Mutual funds | Level 1 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 62 |
U.S. equity securities - Mutual funds | Level 2 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 0 |
U.S. equity securities - Mutual funds | Level 3 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 0 |
Fixed income securities - Mutual funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 6 |
Fixed income securities - Mutual funds | Level 1 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 6 |
Fixed income securities - Mutual funds | Level 2 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 0 |
Fixed income securities - Mutual funds | Level 3 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 0 |
Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 2 |
Cash | Level 1 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 2 |
Cash | Level 2 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | 0 |
Cash | Level 3 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of plan assets | $ 0 |
Retirement Savings Plans (Estim
Retirement Savings Plans (Estimated Benefit Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Pension Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2,019 | $ 5 |
2,020 | 5 |
2,021 | 4 |
2,022 | 5 |
2,023 | 7 |
Thereafter | 29 |
SERP | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2,019 | 8 |
2,020 | 2 |
2,021 | 2 |
2,022 | 2 |
2,023 | 2 |
Thereafter | $ 7 |
Restructuring and Other Charg_3
Restructuring and Other Charges (By Reporting Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | $ 750 | $ 75 | $ 58 |
U.S. Networks | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 322 | 18 | 15 |
International Networks | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 307 | 42 | 26 |
Education and Other | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 1 | 3 | 3 |
Corporate and inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | $ 120 | $ 12 | $ 14 |
Restructuring And Other Charg_4
Restructuring And Other Charges (Total) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ 345 | $ 68 | $ 55 |
Other charges | 405 | 7 | 3 |
Total restructuring and other charges | $ 750 | $ 75 | $ 58 |
Restructuring and Other Charg_5
Restructuring and Other Charges (Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Reserve | |||
Beginning balance | $ 43 | $ 39 | |
Net contract termination accruals | 93 | 3 | |
Net employee relocation/termination accruals | 245 | 65 | |
Cash paid | (273) | (64) | |
Ending balance | 108 | 43 | $ 39 |
Equity awards exchanged for shares | 82 | 44 | 35 |
Scripps Networks | |||
Restructuring Reserve | |||
Equity awards exchanged for shares | 7 | ||
Operating Segments | U.S. Networks | |||
Restructuring Reserve | |||
Beginning balance | 5 | 11 | |
Net contract termination accruals | 12 | 3 | |
Net employee relocation/termination accruals | 89 | 12 | |
Cash paid | (90) | (21) | |
Ending balance | 16 | 5 | 11 |
Operating Segments | International Networks | |||
Restructuring Reserve | |||
Beginning balance | 25 | 11 | |
Net contract termination accruals | 67 | 0 | |
Net employee relocation/termination accruals | 56 | 42 | |
Cash paid | (102) | (28) | |
Ending balance | 46 | 25 | 11 |
Operating Segments | Education and Other | |||
Restructuring Reserve | |||
Beginning balance | 1 | 0 | |
Net contract termination accruals | 0 | 0 | |
Net employee relocation/termination accruals | 1 | 4 | |
Cash paid | (2) | (3) | |
Ending balance | 0 | 1 | 0 |
Corporate and inter-segment eliminations | |||
Restructuring Reserve | |||
Beginning balance | 12 | 17 | |
Net contract termination accruals | 14 | 0 | |
Net employee relocation/termination accruals | 99 | 7 | |
Cash paid | (79) | (12) | |
Ending balance | $ 46 | $ 12 | $ 17 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 1,125 | $ 815 | $ 1,414 |
Foreign | (103) | (952) | 257 |
Income (loss) before income taxes | $ 1,022 | $ (137) | $ 1,671 |
Income Taxes (Schedule of Com_2
Income Taxes (Schedule of Components of Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 323 | $ 177 | $ 384 |
State and local | 30 | 45 | (56) |
Foreign | 119 | 153 | 152 |
Current income tax expense | 472 | 375 | 480 |
Deferred: | |||
Federal | (113) | (124) | 45 |
State and local | (21) | (7) | 0 |
Foreign | 3 | (68) | (72) |
Deferred income tax expense (benefit) | (131) | (199) | (27) |
Income taxes | $ 341 | $ 176 | $ 453 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 06, 2018 | |
Income Tax Contingency [Line Items] | |||||
Tax Cuts and Jobs Act of 2017 provisional income tax benefit | $ 44 | ||||
Federal statutory tax rate | 21.00% | 35.00% | 35.00% | ||
Income tax expense | $ 341 | $ 176 | $ 453 | ||
Effective income tax rate | 33.00% | (128.00%) | 27.00% | ||
Unrecognized tax benefits that would impact effective tax rate | 189 | $ 378 | $ 189 | $ 117 | |
Unrecognized tax benefits related to tax positions could decrease in next twelve months | 101 | ||||
Accrued interest and penalties on unrecognized tax benefits | $ 21 | 51 | $ 21 | $ 11 | |
Scripps Networks | |||||
Income Tax Contingency [Line Items] | |||||
Unrecognized tax benefits that would impact effective tax rate | $ 169 | ||||
Liabilities recorded in purchase accounting | $ 110 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. federal statutory income tax provision | $ 215 | $ (48) | $ 585 |
State and local income taxes, net of federal tax benefit | 10 | 23 | (36) |
Effect of foreign operations | 111 | (35) | (17) |
Domestic production activity deductions | 0 | (52) | (62) |
Change in uncertain tax positions | 37 | 60 | 8 |
Preferred stock modification | 0 | 12 | 0 |
Goodwill impairment | 0 | 458 | 0 |
Renewable energy investments tax credits (See Note 4) | (12) | (195) | (17) |
Noncontrolling interest adjustment | (18) | 0 | 0 |
U.S. Legislative Changes | (19) | (43) | 0 |
Non-deductible compensation | 20 | 0 | 0 |
Other, net | (3) | (4) | (8) |
Income taxes | $ 341 | $ 176 | $ 453 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory income tax provision | 21.00% | 35.00% | 35.00% |
State and local income taxes, net of federal tax benefit | 1.00% | (18.00%) | (2.00%) |
Effect of foreign operations | 11.00% | 25.00% | (1.00%) |
Domestic production activity deductions | (0.00%) | 39.00% | (4.00%) |
Change in uncertain tax positions | 3.00% | (44.00%) | 0.00% |
Preferred stock modification | 0.00% | (9.00%) | 0.00% |
Goodwill impairment | 0.00% | (334.00%) | 0.00% |
Renewable energy investments tax credits (See Note 4) | (1.00%) | 142.00% | (1.00%) |
Noncontrolling interest adjustment | (2.00%) | (0.00%) | (0.00%) |
U.S. Legislative Changes | (2.00%) | 32.00% | 0.00% |
Non-deductible compensation | 2.00% | 0.00% | 0.00% |
Other, net | 0.00% | 4.00% | 0.00% |
Effective income tax rate | 33.00% | (128.00%) | 27.00% |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Accounts receivable | $ 11 | $ 5 |
Tax attribute carry-forward | 321 | 151 |
Accrued liabilities and other | 302 | 190 |
Total deferred income tax assets | 634 | 346 |
Valuation allowance | (336) | (105) |
Net deferred income tax assets | 298 | 241 |
Deferred income tax liabilities: | ||
Intangible assets | (1,418) | (315) |
Content rights | (107) | (82) |
Equity method investments in partnerships | (488) | (68) |
Other | (15) | (31) |
Total deferred income tax liabilities | (2,028) | (496) |
Net deferred income tax liabilities | $ (1,730) | $ (255) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilities in Statement of Financial Position) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Noncurrent deferred income tax assets (included within other noncurrent assets) | $ 81 | $ 64 |
Deferred income tax liabilities (classified on the balance sheet) | (1,811) | (319) |
Net deferred income tax liabilities | $ (1,730) | $ (255) |
Income Taxes (Schedule of Opera
Income Taxes (Schedule of Operating Loss Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance against loss carry-forwards | $ (336) | $ (105) |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Loss carry-forwards | 322 | |
Deferred tax asset related to loss carry-forwards | 16 | |
Valuation allowance against loss carry-forwards | (17) | |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Loss carry-forwards | 1,727 | |
Deferred tax asset related to loss carry-forwards | 249 | |
Valuation allowance against loss carry-forwards | $ (201) |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 189 | $ 117 | $ 173 |
Additions based on tax positions related to the current year | 43 | 27 | 13 |
Additions for tax positions of prior years | 52 | 57 | 19 |
Additions for tax positions acquired in business combinations | 169 | 0 | 0 |
Reductions for tax positions of prior years | (9) | 0 | (60) |
Settlements | (6) | (8) | (16) |
Reductions due to lapse of statutes of limitations | (52) | (6) | (9) |
(Reductions) due to foreign currency exchange rates | (8) | (3) | |
Additions due to foreign currency exchange rates | 2 | ||
Ending balance | $ 378 | $ 189 | $ 117 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 07, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 2,000,000 | |||
Series C Convertible Preferred Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) available to Discovery, Inc. stockholders for diluted net income per share | $ 100 | $ (71) | $ 265 | |
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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income (loss) | $ 299 | $ 135 | $ 244 | $ 3 | $ (1,137) | $ 223 | $ 380 | $ 221 | $ 681 | $ (313) | $ 1,218 |
Net income attributable to noncontrolling interests | (67) | 0 | (1) | ||||||||
Net income attributable to redeemable noncontrolling interests | (20) | (24) | (23) | ||||||||
Redeemable noncontrolling interest adjustments to redemption value | (5) | 0 | 0 | ||||||||
Net income (loss) available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 529 | (296) | 1,055 | ||||||||
Allocation of undistributed income to Series A-1 convertible preferred stockholders | 60 | (41) | 139 | ||||||||
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 | (60) | 41 | (139) | ||||||||
Series A, B and C Common Stock | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income (loss) available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 429 | (225) | 789 | ||||||||
Net income (loss) available to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share | 589 | (337) | 1,194 | ||||||||
Series C-1 Convertible Preferred Stock | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income (loss) available to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | $ 100 | $ (71) | $ 266 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Weighted-Average Number of Shares Outstanding) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | 498 | 384 | 401 |
Impact of assumed preferred stock conversion (in shares) | 187 | 192 | 206 |
Dilutive effect of share-based awards (in shares) | 3 | 0 | 3 |
Weighted average number of shares outstanding, diluted (in shares) | 688 | 576 | 610 |
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 | 7 |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule of Basic and Dilutive Earnings per Share) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | $ 0.38 | $ 0.16 | $ 0.30 | $ (0.01) | $ (1.99) | $ 0.38 | $ 0.65 | $ 0.37 | $ 0.86 | $ (0.59) | $ 1.97 |
Net (loss) income per share, diluted (in dollars per share) | $ 0.38 | $ 0.16 | $ 0.30 | $ (0.01) | $ (1.99) | $ 0.38 | $ 0.64 | $ 0.37 | 0.86 | (0.59) | 1.96 |
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) | 16.65 | (11.33) | 38.07 | ||||||||
Net (loss) income per share, diluted (in dollars per share) | $ 16.58 | $ (11.33) | $ 37.88 |
Earnings Per Share (Schedule _3
Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 2 | ||
Anti-dilutive common stock repurchase contracts (in shares) | 0 | 0 | 2 |
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) | 15 | 19 | 8 |
PRSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 1 | 2 | 4 |
Earnings Per Share (Schedule _4
Earnings Per Share (Schedule of Preferred Stock Repurchase) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Series A, B and C Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net income per share, basic (in dollars per share) | $ 0.38 | $ 0.16 | $ 0.30 | $ (0.01) | $ (1.99) | $ 0.38 | $ 0.65 | $ 0.37 | $ 0.86 | $ (0.59) | $ 1.97 |
Series C-1 Convertible Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net income per share, basic (in dollars per share) | $ 16.65 | $ (11.33) | 38.07 | ||||||||
Advance Programming Holdings, LLC | Series A, B and C Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net income per share, basic (in dollars per share) | 1.97 | ||||||||||
Advance Programming Holdings, LLC | Series C-1 Convertible Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net income per share, basic (in dollars per share) | 38.07 | ||||||||||
Previously Reported | Advance Programming Holdings, LLC | Series A, B and C Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net income per share, basic (in dollars per share) | 1.97 | ||||||||||
Previously Reported | Advance Programming Holdings, LLC | Series C-1 Convertible Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net income per share, basic (in dollars per share) | $ 3.94 |
Supplemental Disclosures (Valua
Supplemental Disclosures (Valuation and Qualifying Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of Year | $ 55 | $ 47 | $ 40 |
Additions | 6 | 12 | 13 |
Write-offs | (15) | (4) | (6) |
End of Year | 46 | 55 | 47 |
Deferred tax valuation allowance (a) | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of Year | 105 | 25 | 19 |
Additions | 283 | 84 | 9 |
Write-offs | (52) | (4) | (3) |
End of Year | 336 | $ 105 | $ 25 |
Deferred tax assets related to balances acquired | $ 195 |
Supplemental Disclosures (Sched
Supplemental Disclosures (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Text Block Supplement [Abstract] | ||
Accrued payroll and related benefits | $ 484 | $ 535 |
Content rights payable | 384 | 219 |
Accrued interest | 154 | 148 |
Other accrued liabilities | 541 | 407 |
Total accrued liabilities | $ 1,563 | $ 1,309 |
Supplemental Disclosures (Sch_2
Supplemental Disclosures (Schedule of Other Expense, net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |||
Foreign currency (losses) gains, net | $ (93) | $ (83) | $ 75 |
Gains (losses) on derivative instruments | 50 | (82) | (12) |
Remeasurement gain on previously held equity interest | 0 | 33 | 0 |
Change in the value of common stock investments with readily determinable fair value | (88) | 0 | 0 |
Interest income | 15 | 21 | 0 |
Other-than-temporary impairment of AFS investments | 0 | 0 | (62) |
Other expense, net | (4) | ||
Other income, net | 1 | 3 | |
Total other expense, net | $ (120) | $ (110) | $ 4 |
Supplemental Disclosures (Sch_3
Supplemental Disclosures (Schedule of Share-based Proceeds, net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Tax settlements associated with share-based plans | $ (18) | $ (30) | $ (11) |
Proceeds from issuance of common stock in connection with share-based plans | 72 | 46 | 50 |
Total share-based plan proceeds, net | $ 54 | $ 16 | 39 |
Scripps Networks | |||
Business Acquisition [Line Items] | |||
Tax settlements associated with share-based plans | $ (7) |
Supplemental Disclosures (Sch_4
Supplemental Disclosures (Schedule of Supplemental Cash Flow Information) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2017 | Nov. 29, 2017 | |
Disclosure Text Block Supplement [Abstract] | |||||
Cash paid for taxes, net | $ 389 | $ 274 | $ 527 | ||
Cash paid for interest | 740 | 357 | 343 | ||
Non-cash investing and financing activities: | |||||
Fair value of assets and liabilities of business received in exchange for redeemable noncontrolling interests | 0 | 144 | 0 | ||
Fair value of investment received, net of cash paid | 0 | 0 | 82 | ||
Net asset value of contributed business | $ 0 | $ 0 | $ 32 | ||
Equity issued for the acquisition of Scripps Networks (in shares) | 3,218 | 0 | 0 | ||
Accrued purchases of property and equipment | $ 39 | $ 24 | $ 42 | ||
Assets acquired under capital lease arrangements | $ 58 | $ 103 | $ 37 | ||
Harpo | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 73.75% | 49.50% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Board of Directors Chairman | Dec. 31, 2018 |
Liberty Global | |
Related Party Transaction [Line Items] | |
Aggregate voting power percentage of a related party | 28.00% |
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Total revenues and service charges | $ 985 | $ 667 | $ 548 |
Interest income | 4 | 13 | |
Expenses | (321) | (178) | (102) |
Liberty Group | |||
Related Party Transaction [Line Items] | |||
Total revenues and service charges | 627 | 476 | 387 |
Equity method investees | |||
Related Party Transaction [Line Items] | |||
Total revenues and service charges | 289 | 145 | 129 |
Interest income | 17 | ||
Other | |||
Related Party Transaction [Line Items] | |||
Total revenues and service charges | $ 69 | $ 46 | $ 32 |
Related Party Transactions (S_2
Related Party Transactions (Schedule of Related Party Transactions, Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Receivables | $ 167 | $ 105 |
Note receivable (See Note 4.) | $ 94 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Commitments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Operating Leases | |
Amounts representing interest | $ (34) |
Total minimum payments, net | 8,571 |
Capital Leases | |
Total minimum payments, net | 8,571 |
Content | |
Amounts representing interest | (34) |
Total minimum payments, net | 8,571 |
Other | |
Amounts representing interest | (34) |
Total minimum payments, net | 8,571 |
Total | |
2,019 | 2,094 |
2,020 | 1,448 |
2,021 | 843 |
2,022 | 769 |
2,023 | 586 |
Thereafter | 2,865 |
Total minimum payments | 8,605 |
Amounts representing interest | (34) |
Total minimum payments, net | 8,571 |
Silver Spring, Maryland | |
Total | |
Proceeds from sale of property | 68 |
Impairment of assets held for sale | 12 |
Operating Leases | |
Operating Leases | |
2,019 | 89 |
2,020 | 90 |
2,021 | 92 |
2,022 | 58 |
2,023 | 51 |
Thereafter | 564 |
Total minimum payments | 944 |
Amounts representing interest | 0 |
Total minimum payments, net | 944 |
Capital Leases | |
Total minimum payments, net | 944 |
Content | |
Amounts representing interest | 0 |
Total minimum payments, net | 944 |
Other | |
Amounts representing interest | 0 |
Total minimum payments, net | 944 |
Total | |
Amounts representing interest | 0 |
Total minimum payments, net | 944 |
Operating Leases | New York City Headquarters | |
Operating Leases | |
Total minimum payments | 535 |
Capital Leases | |
Operating Leases | |
Total minimum payments, net | 252 |
Capital Leases | |
2,019 | 51 |
2,020 | 46 |
2,021 | 41 |
2,022 | 34 |
2,023 | 41 |
Thereafter | 73 |
Total minimum payments | 286 |
Amounts representing interest | (34) |
Total minimum payments, net | 252 |
Content | |
Total minimum payments, net | 252 |
Other | |
Total minimum payments, net | 252 |
Total | |
Total minimum payments, net | 252 |
Content | |
Operating Leases | |
Amounts representing interest | 0 |
Total minimum payments, net | 6,012 |
Capital Leases | |
Total minimum payments, net | 6,012 |
Content | |
2,019 | 1,431 |
2,020 | 960 |
2,021 | 510 |
2,022 | 554 |
2,023 | 418 |
Thereafter | 2,139 |
Total minimum payments | 6,012 |
Amounts representing interest | 0 |
Total minimum payments, net | 6,012 |
Other | |
Amounts representing interest | 0 |
Total minimum payments, net | 6,012 |
Total | |
Amounts representing interest | 0 |
Total minimum payments, net | 6,012 |
Other | |
Operating Leases | |
Amounts representing interest | 0 |
Total minimum payments, net | 1,363 |
Capital Leases | |
Total minimum payments, net | 1,363 |
Content | |
Amounts representing interest | 0 |
Total minimum payments, net | 1,363 |
Other | |
2,019 | 523 |
2,020 | 352 |
2,021 | 200 |
2,022 | 123 |
2,023 | 76 |
Thereafter | 89 |
Total minimum payments | 1,363 |
Amounts representing interest | 0 |
Total minimum payments, net | 1,363 |
Total | |
Amounts representing interest | 0 |
Total minimum payments, net | $ 1,363 |
Other | Minimum | |
Total | |
Contract termination notice, period without penalty | 30 days |
Other | Maximum | |
Total | |
Contract termination notice, period without penalty | 60 days |
Commitments and Contingencies_3
Commitments and Contingencies (Contingencies) (Details) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 25, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Commitments [Line Items] | |||||
Redeemable noncontrolling interest balance | $ 415,000,000 | $ 413,000,000 | $ 243,000,000 | $ 241,000,000 | |
Material amounts for indemnifications or other contingencies | 0 | 0 | |||
Poland | |||||
Other Commitments [Line Items] | |||||
Liability recorded as a measurement period adjustment | 40,000,000 | ||||
OWN | |||||
Other Commitments [Line Items] | |||||
Redeemable noncontrolling interest balance | 58,000,000 | 56,000,000 | |||
MTG | |||||
Other Commitments [Line Items] | |||||
Redeemable noncontrolling interest balance | 121,000,000 | 120,000,000 | $ 120,000,000 | ||
Discovery Family | |||||
Other Commitments [Line Items] | |||||
Redeemable noncontrolling interest balance | 206,000,000 | 210,000,000 | |||
Discovery Japan | |||||
Other Commitments [Line Items] | |||||
Redeemable noncontrolling interest balance | $ 30,000,000 | $ 27,000,000 |
Reportable Segments (Schedule o
Reportable Segments (Schedule of Revenues by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 10,553 | $ 6,873 | $ 6,497 |
Operating Segments | U.S. Networks | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 6,350 | 3,434 | 3,285 |
Operating Segments | International Networks | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 4,149 | 3,281 | 3,040 |
Operating Segments | Education and Other | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 54 | 158 | 174 |
Corporate and inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 0 | $ 0 | $ (2) |
Reportable Segments (Schedule_2
Reportable Segments (Schedule of Adjusted OIBDA by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total Adjusted OIBDA | $ 4,139 | $ 2,531 | $ 2,413 |
Operating Segments | U.S. Networks | |||
Segment Reporting Information [Line Items] | |||
Total Adjusted OIBDA | 3,500 | 2,026 | 1,922 |
Operating Segments | International Networks | |||
Segment Reporting Information [Line Items] | |||
Total Adjusted OIBDA | 1,077 | 859 | 835 |
Operating Segments | Education and Other | |||
Segment Reporting Information [Line Items] | |||
Total Adjusted OIBDA | 3 | 6 | (10) |
Corporate and inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Total Adjusted OIBDA | $ (441) | $ (360) | $ (334) |
Reportable Segments (Reconcilia
Reportable Segments (Reconciliation of Net Income (Loss) Available to Discovery, Inc. to Total Adjusted OIBDA) (Details) - USD ($) $ in Millions | Nov. 30, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting [Abstract] | ||||||||||||
Net income (loss) available to Discovery, Inc. | $ 269 | $ 117 | $ 216 | $ (8) | $ (1,144) | $ 218 | $ 374 | $ 215 | $ 594 | $ (337) | $ 1,194 | |
Net income attributable to redeemable noncontrolling interests | 20 | 24 | 23 | |||||||||
Net income attributable to noncontrolling interests | 67 | 0 | 1 | |||||||||
Income tax expense | 341 | 176 | 453 | |||||||||
Income (loss) before income taxes | 1,022 | (137) | 1,671 | |||||||||
Other expense (income), net | 120 | 110 | (4) | |||||||||
Loss from equity investees, net | 63 | 211 | 38 | |||||||||
Loss on extinguishment of debt | 0 | 54 | 0 | |||||||||
Interest Expense | 729 | 475 | 353 | |||||||||
Operating income | $ 711 | $ 369 | $ 650 | $ 204 | (837) | $ 433 | $ 630 | $ 487 | 1,934 | 713 | 2,058 | |
(Gain) loss on disposition | (84) | 4 | (63) | |||||||||
Restructuring and other charges | 750 | 75 | 58 | |||||||||
Depreciation and amortization | 1,398 | 330 | 322 | |||||||||
Impairment of goodwill | $ 1,300 | $ 1,300 | 0 | 1,327 | 0 | |||||||
Mark-to-market share-based compensation | 31 | 3 | 38 | |||||||||
Scripps Networks transaction and integration costs | 110 | 79 | 0 | |||||||||
Total Adjusted OIBDA | $ 4,139 | $ 2,531 | $ 2,413 |
Reportable Segments (Schedule_3
Reportable Segments (Schedule of Total Assets by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 06, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 32,550 | $ 22,555 | ||
Goodwill | 13,006 | 7,073 | $ 8,040 | |
Scripps Networks | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 6,121 | |||
U.S. Networks | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 10,785 | 5,478 | 5,265 | |
U.S. Networks | Scripps Networks | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 5,300 | |||
International Networks | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 2,221 | 1,555 | 2,708 | |
International Networks | Scripps Networks | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 802 | |||
Education and Other | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 0 | 40 | $ 67 | |
Operating Segments | U.S. Networks | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 18,683 | 4,127 | ||
Operating Segments | International Networks | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 7,208 | 5,187 | ||
Operating Segments | Education and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 227 | 394 | ||
Corporate and inter-segment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | $ 6,432 | $ 12,847 |
Reportable Segments (Schedule_4
Reportable Segments (Schedule of Content Rights Expense and Impairment) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total content amortization and impairment expense | $ 3,288,000,000 | $ 1,910,000,000 | $ 1,773,000,000 |
Content impairments | 430,000,000 | 32,000,000 | 72,000,000 |
Scripps Networks | |||
Segment Reporting Information [Line Items] | |||
Content impairments | 405,000,000 | 0 | 7,000,000 |
U.S. Networks | |||
Segment Reporting Information [Line Items] | |||
Total content amortization and impairment expense | 1,702,000,000 | 776,000,000 | 756,000,000 |
International Networks | |||
Segment Reporting Information [Line Items] | |||
Total content amortization and impairment expense | 1,584,000,000 | 1,126,000,000 | 1,008,000,000 |
Education and Other | |||
Segment Reporting Information [Line Items] | |||
Total content amortization and impairment expense | $ 2,000,000 | $ 8,000,000 | $ 9,000,000 |
Reportable Segments (Schedule_5
Reportable Segments (Schedule of Revenues by Geography) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | $ 2,809 | $ 2,592 | $ 2,845 | $ 2,307 | $ 1,864 | $ 1,651 | $ 1,745 | $ 1,613 | $ 10,553 | $ 6,873 | $ 6,497 |
U.S. | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 6,415 | 3,560 | 3,411 | ||||||||
Non-U.S. | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | $ 4,138 | $ 3,313 | $ 3,086 |
Reportable Segments (Schedule_6
Reportable Segments (Schedule of Property and Equipment by Geography) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total property and equipment, net | $ 800 | $ 597 |
U.S. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total property and equipment, net | 350 | 309 |
Poland | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total property and equipment, net | 185 | 0 |
U.K. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total property and equipment, net | 160 | 173 |
Other non-U.S. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total property and equipment, net | $ 105 | $ 115 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 30, 2018 | Mar. 06, 2018 | Nov. 30, 2017 | Apr. 28, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 29, 2017 | Sep. 25, 2017 | Aug. 07, 2017 | Mar. 13, 2017 |
Business Acquisition [Line Items] | ||||||||||||||||||||
Revenues | $ 2,809 | $ 2,592 | $ 2,845 | $ 2,307 | $ 1,864 | $ 1,651 | $ 1,745 | $ 1,613 | $ 10,553 | $ 6,873 | $ 6,497 | |||||||||
Operating income | 711 | 369 | 650 | 204 | (837) | 433 | 630 | 487 | 1,934 | 713 | 2,058 | |||||||||
Net income (loss) | 299 | 135 | 244 | 3 | (1,137) | 223 | 380 | 221 | 681 | (313) | 1,218 | |||||||||
Net income (loss) available to Discovery, Inc. | 269 | $ 117 | $ 216 | $ (8) | (1,144) | $ 218 | $ 374 | 215 | 594 | (337) | 1,194 | |||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Gain (loss) on disposition | 84 | (4) | 63 | |||||||||||||||||
Goodwill written off related to sale | 40 | 30 | ||||||||||||||||||
Impairment of goodwill | $ 1,300 | 1,300 | 0 | 1,327 | 0 | |||||||||||||||
Remeasurement gain on previously held equity interest | 0 | 34 | 0 | |||||||||||||||||
Transaction and integration costs | 110 | 79 | 0 | |||||||||||||||||
Long-term debt, gross | 17,170 | 14,913 | $ 14,913 | 17,170 | 14,913 | |||||||||||||||
Loss on extinguishment of debt | 0 | 54 | $ 0 | |||||||||||||||||
MTG | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Post-acquisition ownership percentage of the acquiror in the combined entity | 67.50% | |||||||||||||||||||
Harpo | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Percentage of voting interests acquired | 73.75% | 49.50% | ||||||||||||||||||
Cash consideration transferred | $ 70 | |||||||||||||||||||
Remeasurement gain on previously held equity interest | $ 33 | |||||||||||||||||||
Scripps Networks | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Cash consideration transferred | $ 8,590 | |||||||||||||||||||
Transaction and integration costs | 79 | |||||||||||||||||||
Transaction costs | $ 117 | |||||||||||||||||||
Scripps Networks | Advance Newhouse | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Transaction costs | $ 35 | |||||||||||||||||||
5.050% Senior notes, semi-annual interest, due June 2020 | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Long-term debt, gross | $ 789 | 789 | 789 | $ 789 | 789 | |||||||||||||||
Debt instrument interest rate | 5.05% | 5.05% | ||||||||||||||||||
5.625% Senior notes, semi-annual interest, due August 2019 | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Long-term debt, gross | $ 411 | $ 411 | $ 411 | $ 411 | 411 | |||||||||||||||
Debt instrument interest rate | 5.625% | 5.625% | ||||||||||||||||||
Senior Notes | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Loss on extinguishment of debt | 54 | 54 | ||||||||||||||||||
Payment for debt extinguishment or debt prepayment cost | 50 | 50 | ||||||||||||||||||
Write off of deferred debt issuance cost | 2 | 2 | ||||||||||||||||||
Repayments of debt | 1 | 1 | ||||||||||||||||||
Debt issuance cost | 1 | 1 | ||||||||||||||||||
Senior Notes | 5.050% Senior notes, semi-annual interest, due June 2020 | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Long-term debt, gross | $ 600 | $ 600 | ||||||||||||||||||
Debt instrument interest rate | 5.05% | 5.05% | 5.05% | |||||||||||||||||
Senior Notes | 5.625% Senior notes, semi-annual interest, due August 2019 | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Debt instrument interest rate | 5.625% | 5.625% | 5.625% | |||||||||||||||||
Education Business | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Consideration received on sale | $ 113 | |||||||||||||||||||
Gain (loss) on disposition | 84 | |||||||||||||||||||
Loss on write-off of net assets | 44 | |||||||||||||||||||
Goodwill written off related to sale | $ 40 | |||||||||||||||||||
Raw and Betty businesses | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Gain (loss) on disposition | $ (4) | $ (4) | ||||||||||||||||||
Series A, B and C Common Stock | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Basic (in dollars per share) | $ 0.38 | $ 0.16 | $ 0.30 | $ (0.01) | $ (1.99) | $ 0.38 | $ 0.65 | $ 0.37 | $ 0.86 | $ (0.59) | $ 1.97 | |||||||||
Diluted (in dollars per share) | $ 0.38 | $ 0.16 | $ 0.30 | $ (0.01) | $ (1.99) | $ 0.38 | $ 0.64 | $ 0.37 | $ 0.86 | $ (0.59) | $ 1.96 | |||||||||
Education Business | Education Business | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||||||||||||
Net income (loss) per share available to Discovery, Inc. Series A, B and C common stockholders: | ||||||||||||||||||||
Ownership percentage by parent | 88.00% | 12.00% | 12.00% |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements (Narrative) (Details) - USD ($) $ in Millions | Apr. 03, 2018 | Dec. 31, 2018 | Mar. 06, 2018 | Sep. 25, 2017 |
MTG | ||||
Business Acquisition [Line Items] | ||||
Post-acquisition ownership percentage of the acquiror in the combined entity | 67.50% | |||
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 | |||
DCL | ||||
Business Acquisition [Line Items] | ||||
Direct ownership percentage in Discovery Communications Holding, LLC | 33.30% | |||
Indirect ownership percentage in Discovery Communications Holding, LLC | 66.70% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 986 | $ 7,309 | $ 300 | $ 390 |
Receivables, net | 2,620 | 1,838 | ||
Content rights, net | 313 | 410 | ||
Prepaid expenses and other current assets | 312 | 434 | ||
Total current assets | 4,231 | 9,991 | ||
Noncurrent content rights, net | 3,069 | 2,213 | ||
Goodwill | 13,006 | 7,073 | 8,040 | |
Intangible assets, net | 9,674 | 1,770 | ||
Equity method investments, including note receivable (See Note 3) | 935 | 335 | ||
Other noncurrent assets | 835 | 576 | ||
Total assets | 32,550 | 22,555 | ||
Current liabilities: | ||||
Current portion of debt | 1,860 | 30 | ||
Total current liabilities | 3,997 | 1,871 | ||
Noncurrent portion of debt | 15,185 | 14,755 | ||
Other noncurrent liabilities | 1,040 | 587 | ||
Total liabilities | 22,033 | 17,532 | ||
Redeemable noncontrolling interests | 415 | 413 | ||
Total Discovery, Inc. stockholders’ equity | 8,386 | 4,610 | ||
Noncontrolling interests | 1,716 | 0 | ||
Total equity | 10,102 | 4,610 | 5,167 | 5,451 |
Total liabilities and equity | 32,550 | 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 | (151) | (205) | ||
Total current assets | (151) | (205) | ||
Investment in and advances to subsidiaries | (27,905) | (19,102) | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill | 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 | (28,076) | (19,327) | ||
Current liabilities: | ||||
Current portion of debt | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Inter-company trade payables, net | (151) | (205) | ||
Total current liabilities | (151) | (205) | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | (8,610) | |||
Other noncurrent liabilities | (20) | (20) | ||
Total liabilities | (8,781) | (225) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders’ equity | (21,011) | |||
Noncontrolling interests | 1,716 | |||
Total equity | (19,295) | (19,102) | ||
Total liabilities and equity | (28,076) | (19,327) | ||
Discovery | Reportable Legal Entities | ||||
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 | 21 | 49 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 21 | 49 | ||
Investment in and advances to subsidiaries | 8,367 | 4,563 | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill | 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 | 8,388 | 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 | ||
Negative carrying amount in subsidiaries, net | 0 | |||
Other noncurrent liabilities | 2 | 2 | ||
Total liabilities | 2 | 2 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders’ equity | 8,386 | |||
Noncontrolling interests | 0 | |||
Total equity | 8,386 | 4,610 | ||
Total liabilities and equity | 8,388 | 4,612 | ||
Scripps Inc. | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 315 | 0 | ||
Receivables, net | 0 | |||
Content rights, net | 0 | |||
Prepaid expenses and other current assets | 18 | |||
Inter-company trade receivables, net | 0 | |||
Total current assets | 333 | |||
Investment in and advances to subsidiaries | 13,248 | |||
Noncurrent content rights, net | 0 | |||
Goodwill | 0 | |||
Intangible assets, net | 0 | |||
Equity method investments, including note receivable (See Note 3) | 94 | |||
Other noncurrent assets | 35 | |||
Total assets | 13,710 | |||
Current liabilities: | ||||
Current portion of debt | 106 | |||
Other current liabilities | 30 | |||
Inter-company trade payables, net | 0 | |||
Total current liabilities | 136 | |||
Noncurrent portion of debt | 134 | |||
Negative carrying amount in subsidiaries, net | 0 | |||
Other noncurrent liabilities | 56 | |||
Total liabilities | 326 | |||
Redeemable noncontrolling interests | 0 | |||
Total Discovery, Inc. stockholders’ equity | 13,384 | |||
Noncontrolling interests | 0 | |||
Total equity | 13,384 | |||
Total liabilities and equity | 13,710 | |||
DCH | Reportable Legal Entities | ||||
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 | 22 | 32 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 22 | 32 | ||
Investment in and advances to subsidiaries | 0 | 4,532 | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill | 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 | 42 | 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 | ||
Negative carrying amount in subsidiaries, net | 5,183 | |||
Other noncurrent liabilities | 0 | 0 | ||
Total liabilities | 5,183 | 0 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders’ equity | (5,141) | |||
Noncontrolling interests | 0 | |||
Total equity | (5,141) | 4,584 | ||
Total liabilities and equity | 42 | 4,584 | ||
DCL | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 61 | 6,800 | 20 | 3 |
Receivables, net | 405 | 410 | ||
Content rights, net | 1 | 4 | ||
Prepaid expenses and other current assets | 49 | 204 | ||
Inter-company trade receivables, net | 151 | 205 | ||
Total current assets | 667 | 7,623 | ||
Investment in and advances to subsidiaries | 6,290 | 6,951 | ||
Noncurrent content rights, net | 607 | 672 | ||
Goodwill | 3,678 | 3,677 | ||
Intangible assets, net | 246 | 259 | ||
Equity method investments, including note receivable (See Note 3) | 23 | 25 | ||
Other noncurrent assets | 537 | 364 | ||
Total assets | 12,048 | 19,571 | ||
Current liabilities: | ||||
Current portion of debt | 1,709 | 7 | ||
Other current liabilities | 394 | 572 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 2,103 | 579 | ||
Noncurrent portion of debt | 14,641 | 14,163 | ||
Negative carrying amount in subsidiaries, net | 0 | |||
Other noncurrent liabilities | 487 | 297 | ||
Total liabilities | 17,231 | 15,039 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders’ equity | (5,183) | |||
Noncontrolling interests | 0 | |||
Total equity | (5,183) | 4,532 | ||
Total liabilities and equity | 12,048 | 19,571 | ||
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 475 | 509 | 280 | 387 |
Receivables, net | 1,305 | 1,428 | ||
Content rights, net | 250 | 406 | ||
Prepaid expenses and other current assets | 134 | 149 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 2,164 | 2,492 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 1,501 | 1,541 | ||
Goodwill | 3,298 | 3,396 | ||
Intangible assets, net | 1,261 | 1,511 | ||
Equity method investments, including note receivable (See Note 3) | 291 | 310 | ||
Other noncurrent assets | 607 | 809 | ||
Total assets | 9,122 | 10,059 | ||
Current liabilities: | ||||
Current portion of debt | 35 | 23 | ||
Other current liabilities | 1,243 | 1,269 | ||
Inter-company trade payables, net | 151 | 205 | ||
Total current liabilities | 1,429 | 1,497 | ||
Noncurrent portion of debt | 375 | 592 | ||
Negative carrying amount in subsidiaries, net | 0 | |||
Other noncurrent liabilities | 613 | 606 | ||
Total liabilities | 2,417 | 2,695 | ||
Redeemable noncontrolling interests | 415 | 413 | ||
Total Discovery, Inc. stockholders’ equity | 6,290 | |||
Noncontrolling interests | 0 | |||
Total equity | 6,290 | 6,951 | ||
Total liabilities and equity | 9,122 | 10,059 | ||
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 135 | 0 | 0 | 0 |
Receivables, net | 910 | 0 | ||
Content rights, net | 62 | 0 | ||
Prepaid expenses and other current assets | 68 | 0 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 1,175 | 0 | ||
Investment in and advances to subsidiaries | 0 | 3,056 | ||
Noncurrent content rights, net | 961 | 0 | ||
Goodwill | 6,030 | 0 | ||
Intangible assets, net | 8,167 | 0 | ||
Equity method investments, including note receivable (See Note 3) | 527 | 0 | ||
Other noncurrent assets | 456 | 0 | ||
Total assets | 17,316 | 3,056 | ||
Current liabilities: | ||||
Current portion of debt | 10 | 0 | ||
Other current liabilities | 470 | 0 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 480 | 0 | ||
Noncurrent portion of debt | 35 | 0 | ||
Negative carrying amount in subsidiaries, net | 3,427 | |||
Other noncurrent liabilities | 1,713 | 21 | ||
Total liabilities | 5,655 | 21 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders’ equity | 11,661 | |||
Noncontrolling interests | 0 | |||
Total equity | 11,661 | 3,035 | ||
Total liabilities and equity | 17,316 | 3,056 | ||
Discovery and Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 986 | 7,309 | $ 300 | $ 390 |
Receivables, net | 2,620 | 1,838 | ||
Content rights, net | 313 | 410 | ||
Prepaid expenses and other current assets | 312 | 434 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 4,231 | 9,991 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 3,069 | 2,213 | ||
Goodwill | 13,006 | 7,073 | ||
Intangible assets, net | 9,674 | 1,770 | ||
Equity method investments, including note receivable (See Note 3) | 935 | 335 | ||
Other noncurrent assets | 1,635 | 1,173 | ||
Total assets | 32,550 | 22,555 | ||
Current liabilities: | ||||
Current portion of debt | 1,860 | 30 | ||
Other current liabilities | 2,137 | 1,841 | ||
Inter-company trade payables, net | 0 | 0 | ||
Total current liabilities | 3,997 | 1,871 | ||
Noncurrent portion of debt | 15,185 | 14,755 | ||
Negative carrying amount in subsidiaries, net | 0 | |||
Other noncurrent liabilities | 2,851 | 906 | ||
Total liabilities | 22,033 | 17,532 | ||
Redeemable noncontrolling interests | 415 | 413 | ||
Total Discovery, Inc. stockholders’ equity | 8,386 | |||
Noncontrolling interests | 1,716 | |||
Total equity | 10,102 | 4,610 | ||
Total liabilities and equity | $ 32,550 | $ 22,555 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Operations) (Details) - USD ($) $ in Millions | Nov. 30, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Revenues | $ 2,809 | $ 2,592 | $ 2,845 | $ 2,307 | $ 1,864 | $ 1,651 | $ 1,745 | $ 1,613 | $ 10,553 | $ 6,873 | $ 6,497 | |
Costs of revenues, excluding depreciation and amortization | 3,935 | 2,656 | 2,432 | |||||||||
Selling, general and administrative | 2,620 | 1,768 | 1,690 | |||||||||
Impairment of goodwill | $ 1,300 | 1,300 | 0 | 1,327 | 0 | |||||||
Depreciation and amortization | 1,398 | 330 | 322 | |||||||||
Restructuring and other charges | 750 | 75 | 58 | |||||||||
(Gain) loss on disposition | (84) | 4 | (63) | |||||||||
Total costs and expenses | 8,619 | 6,160 | 4,439 | |||||||||
Operating income | 711 | 369 | 650 | 204 | (837) | 433 | 630 | 487 | 1,934 | 713 | 2,058 | |
Interest expense, net | (729) | (475) | (353) | |||||||||
Loss on extinguishment of debt | 0 | (54) | 0 | |||||||||
Loss from equity investees, net | (63) | (211) | (38) | |||||||||
Other (expense) income, net | (120) | (110) | 4 | |||||||||
Income (loss) before income taxes | 1,022 | (137) | 1,671 | |||||||||
Income tax benefit (expense) | (341) | (176) | (453) | |||||||||
Net income (loss) | 299 | 135 | 244 | 3 | (1,137) | 223 | 380 | 221 | 681 | (313) | 1,218 | |
Net income attributable to noncontrolling interests | (67) | 0 | (1) | |||||||||
Net income attributable to redeemable noncontrolling interests | (20) | (24) | (23) | |||||||||
Net income (loss) available to Discovery, Inc. | $ 269 | $ 117 | $ 216 | $ (8) | $ (1,144) | $ 218 | $ 374 | $ 215 | 594 | (337) | 1,194 | |
Reclassifications and Eliminations | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Revenues | (41) | (12) | (13) | |||||||||
Costs of revenues, excluding depreciation and amortization | (24) | (2) | (4) | |||||||||
Selling, general and administrative | (17) | (10) | (9) | |||||||||
Impairment of goodwill | 0 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||
Restructuring and other charges | 0 | 0 | 0 | |||||||||
(Gain) loss on disposition | 0 | 0 | 0 | |||||||||
Total costs and expenses | (41) | (12) | (13) | |||||||||
Operating income | 0 | 0 | 0 | |||||||||
Equity in earnings of subsidiaries | (1,832) | 1,309 | (3,810) | |||||||||
Interest expense, net | 0 | 0 | 0 | |||||||||
Loss on extinguishment of debt | 0 | |||||||||||
Loss from equity investees, net | 0 | 0 | 0 | |||||||||
Other (expense) income, net | 0 | 0 | 0 | |||||||||
Income (loss) before income taxes | (1,832) | 1,309 | (3,810) | |||||||||
Income tax benefit (expense) | 0 | 0 | 0 | |||||||||
Net income (loss) | (1,832) | 1,309 | (3,810) | |||||||||
Net income attributable to noncontrolling interests | (67) | (1) | ||||||||||
Net income attributable to redeemable noncontrolling interests | (20) | (24) | (23) | |||||||||
Net income (loss) available to Discovery, Inc. | (1,919) | 1,285 | (3,834) | |||||||||
Discovery | Reportable Legal Entities | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Costs of revenues, excluding depreciation and amortization | 0 | 0 | 0 | |||||||||
Selling, general and administrative | 41 | 53 | 14 | |||||||||
Impairment of goodwill | 0 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||
Restructuring and other charges | 8 | 0 | 0 | |||||||||
(Gain) loss on disposition | 0 | 0 | 0 | |||||||||
Total costs and expenses | 49 | 53 | 14 | |||||||||
Operating income | (49) | (53) | (14) | |||||||||
Equity in earnings of subsidiaries | 637 | (288) | 1,203 | |||||||||
Interest expense, net | 0 | 0 | 0 | |||||||||
Loss on extinguishment of debt | 0 | |||||||||||
Loss from equity investees, net | 0 | 0 | 0 | |||||||||
Other (expense) income, net | (5) | 0 | 0 | |||||||||
Income (loss) before income taxes | 583 | (341) | 1,189 | |||||||||
Income tax benefit (expense) | 11 | 4 | 5 | |||||||||
Net income (loss) | 594 | (337) | 1,194 | |||||||||
Net income attributable to noncontrolling interests | 0 | 0 | ||||||||||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income (loss) available to Discovery, Inc. | 594 | (337) | 1,194 | |||||||||
Scripps Inc. | Reportable Legal Entities | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Costs of revenues, excluding depreciation and amortization | 0 | |||||||||||
Selling, general and administrative | 0 | |||||||||||
Depreciation and amortization | 1 | |||||||||||
Restructuring and other charges | 0 | |||||||||||
(Gain) loss on disposition | 0 | |||||||||||
Total costs and expenses | 1 | |||||||||||
Operating income | (1) | |||||||||||
Equity in earnings of subsidiaries | 198 | |||||||||||
Interest expense, net | (6) | |||||||||||
Loss from equity investees, net | 0 | |||||||||||
Other (expense) income, net | 12 | |||||||||||
Income (loss) before income taxes | 203 | |||||||||||
Income tax benefit (expense) | 0 | |||||||||||
Net income (loss) | 203 | |||||||||||
Net income attributable to noncontrolling interests | 0 | |||||||||||
Net income attributable to redeemable noncontrolling interests | 0 | |||||||||||
Net income (loss) available to Discovery, Inc. | 203 | |||||||||||
DCH | Reportable Legal Entities | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Costs of revenues, excluding depreciation and amortization | 0 | 0 | 0 | |||||||||
Selling, general and administrative | 0 | 0 | 0 | |||||||||
Impairment of goodwill | 0 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||
Restructuring and other charges | 0 | 0 | 0 | |||||||||
(Gain) loss on disposition | 0 | 0 | 0 | |||||||||
Total costs and expenses | 0 | 0 | 0 | |||||||||
Operating income | 0 | 0 | 0 | |||||||||
Equity in earnings of subsidiaries | 473 | (288) | 1,203 | |||||||||
Interest expense, net | 0 | 0 | 0 | |||||||||
Loss on extinguishment of debt | 0 | |||||||||||
Loss from equity investees, net | 0 | 0 | 0 | |||||||||
Other (expense) income, net | 0 | 0 | 0 | |||||||||
Income (loss) before income taxes | 473 | (288) | 1,203 | |||||||||
Income tax benefit (expense) | 0 | 0 | 0 | |||||||||
Net income (loss) | 473 | (288) | 1,203 | |||||||||
Net income attributable to noncontrolling interests | 0 | 0 | ||||||||||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income (loss) available to Discovery, Inc. | 473 | (288) | 1,203 | |||||||||
DCL | Reportable Legal Entities | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Revenues | 1,950 | 1,988 | 1,963 | |||||||||
Costs of revenues, excluding depreciation and amortization | 445 | 467 | 466 | |||||||||
Selling, general and administrative | 315 | 309 | 292 | |||||||||
Impairment of goodwill | 0 | |||||||||||
Depreciation and amortization | 53 | 42 | 41 | |||||||||
Restructuring and other charges | 118 | 35 | 28 | |||||||||
(Gain) loss on disposition | 0 | 0 | (50) | |||||||||
Total costs and expenses | 931 | 853 | 777 | |||||||||
Operating income | 1,019 | 1,135 | 1,186 | |||||||||
Equity in earnings of subsidiaries | 209 | (541) | 602 | |||||||||
Interest expense, net | (693) | (448) | (332) | |||||||||
Loss on extinguishment of debt | (54) | |||||||||||
Loss from equity investees, net | 4 | (3) | (3) | |||||||||
Other (expense) income, net | 71 | (204) | 40 | |||||||||
Income (loss) before income taxes | 610 | (115) | 1,493 | |||||||||
Income tax benefit (expense) | (137) | (173) | (290) | |||||||||
Net income (loss) | 473 | (288) | 1,203 | |||||||||
Net income attributable to noncontrolling interests | 0 | 0 | ||||||||||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income (loss) available to Discovery, Inc. | 473 | (288) | 1,203 | |||||||||
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Revenues | 5,597 | 4,897 | 4,547 | |||||||||
Costs of revenues, excluding depreciation and amortization | 2,558 | 2,191 | 1,970 | |||||||||
Selling, general and administrative | 1,694 | 1,416 | 1,393 | |||||||||
Impairment of goodwill | 1,327 | |||||||||||
Depreciation and amortization | 365 | 288 | 281 | |||||||||
Restructuring and other charges | 407 | 40 | 30 | |||||||||
(Gain) loss on disposition | (84) | 4 | (13) | |||||||||
Total costs and expenses | 4,940 | 5,266 | 3,661 | |||||||||
Operating income | 657 | (369) | 886 | |||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | |||||||||
Interest expense, net | (29) | (27) | (21) | |||||||||
Loss on extinguishment of debt | 0 | |||||||||||
Loss from equity investees, net | (91) | (208) | (35) | |||||||||
Other (expense) income, net | (145) | 94 | (36) | |||||||||
Income (loss) before income taxes | 392 | (510) | 794 | |||||||||
Income tax benefit (expense) | (163) | (7) | (168) | |||||||||
Net income (loss) | 229 | (517) | 626 | |||||||||
Net income attributable to noncontrolling interests | 0 | 0 | ||||||||||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income (loss) available to Discovery, Inc. | 229 | (517) | 626 | |||||||||
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Revenues | 3,047 | 0 | 0 | |||||||||
Costs of revenues, excluding depreciation and amortization | 956 | 0 | 0 | |||||||||
Selling, general and administrative | 587 | 0 | 0 | |||||||||
Impairment of goodwill | 0 | |||||||||||
Depreciation and amortization | 979 | 0 | 0 | |||||||||
Restructuring and other charges | 217 | 0 | 0 | |||||||||
(Gain) loss on disposition | 0 | 0 | 0 | |||||||||
Total costs and expenses | 2,739 | 0 | 0 | |||||||||
Operating income | 308 | 0 | 0 | |||||||||
Equity in earnings of subsidiaries | 315 | (192) | 802 | |||||||||
Interest expense, net | (1) | 0 | 0 | |||||||||
Loss on extinguishment of debt | 0 | |||||||||||
Loss from equity investees, net | 24 | 0 | 0 | |||||||||
Other (expense) income, net | (53) | 0 | 0 | |||||||||
Income (loss) before income taxes | 593 | (192) | 802 | |||||||||
Income tax benefit (expense) | (52) | 0 | 0 | |||||||||
Net income (loss) | 541 | (192) | 802 | |||||||||
Net income attributable to noncontrolling interests | 0 | 0 | ||||||||||
Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income (loss) available to Discovery, Inc. | 541 | (192) | 802 | |||||||||
Discovery and Subsidiaries | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Revenues | 10,553 | 6,873 | 6,497 | |||||||||
Costs of revenues, excluding depreciation and amortization | 3,935 | 2,656 | 2,432 | |||||||||
Selling, general and administrative | 2,620 | 1,768 | 1,690 | |||||||||
Impairment of goodwill | 1,327 | |||||||||||
Depreciation and amortization | 1,398 | 330 | 322 | |||||||||
Restructuring and other charges | 750 | 75 | 58 | |||||||||
(Gain) loss on disposition | (84) | 4 | (63) | |||||||||
Total costs and expenses | 8,619 | 6,160 | 4,439 | |||||||||
Operating income | 1,934 | 713 | 2,058 | |||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | |||||||||
Interest expense, net | (729) | (475) | (353) | |||||||||
Loss on extinguishment of debt | (54) | |||||||||||
Loss from equity investees, net | (63) | (211) | (38) | |||||||||
Other (expense) income, net | (120) | (110) | 4 | |||||||||
Income (loss) before income taxes | 1,022 | (137) | 1,671 | |||||||||
Income tax benefit (expense) | (341) | (176) | (453) | |||||||||
Net income (loss) | 681 | (313) | 1,218 | |||||||||
Net income attributable to noncontrolling interests | (67) | (1) | ||||||||||
Net income attributable to redeemable noncontrolling interests | (20) | (24) | (23) | |||||||||
Net income (loss) available to Discovery, Inc. | $ 594 | $ (337) | $ 1,194 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | $ 299 | $ 135 | $ 244 | $ 3 | $ (1,137) | $ 223 | $ 380 | $ 221 | $ 681 | $ (313) | $ 1,218 |
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | (189) | 183 | (191) | ||||||||
Available-for-sale securities | 0 | 15 | 38 | ||||||||
Pension plan and SERP | 3 | 0 | 0 | ||||||||
Derivatives | 12 | (20) | 24 | ||||||||
Comprehensive income (loss) | 507 | (135) | 1,089 | ||||||||
Comprehensive income attributable to noncontrolling interests | (67) | 0 | (1) | ||||||||
Comprehensive income attributable to redeemable noncontrolling interests | (20) | (25) | (23) | ||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | 420 | (160) | 1,065 | ||||||||
Reclassifications and Eliminations | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | (1,832) | 1,309 | (3,810) | ||||||||
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | 383 | (674) | 699 | ||||||||
Available-for-sale securities | (55) | (139) | |||||||||
Pension plan and SERP | (3) | ||||||||||
Derivatives | (44) | 62 | (86) | ||||||||
Comprehensive income (loss) | (1,496) | 642 | (3,336) | ||||||||
Comprehensive income attributable to noncontrolling interests | (67) | (1) | |||||||||
Comprehensive income attributable to redeemable noncontrolling interests | (20) | (20) | 84 | ||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | (1,583) | 622 | (3,253) | ||||||||
Discovery | Reportable Legal Entities | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 594 | (337) | 1,194 | ||||||||
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | (189) | 183 | (191) | ||||||||
Available-for-sale securities | 15 | 38 | |||||||||
Pension plan and SERP | 3 | ||||||||||
Derivatives | 12 | (20) | 24 | ||||||||
Comprehensive income (loss) | 420 | (159) | 1,065 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | |||||||||
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (1) | (23) | ||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | 420 | (160) | 1,042 | ||||||||
Scripps Inc. | Reportable Legal Entities | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 203 | ||||||||||
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | (204) | ||||||||||
Pension plan and SERP | 3 | ||||||||||
Derivatives | 0 | ||||||||||
Comprehensive income (loss) | 2 | ||||||||||
Comprehensive income attributable to noncontrolling interests | 0 | ||||||||||
Comprehensive income attributable to redeemable noncontrolling interests | 0 | ||||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | 2 | ||||||||||
DCH | Reportable Legal Entities | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 473 | (288) | 1,203 | ||||||||
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | 15 | 183 | (191) | ||||||||
Available-for-sale securities | 15 | 38 | |||||||||
Pension plan and SERP | 0 | ||||||||||
Derivatives | 12 | (20) | 24 | ||||||||
Comprehensive income (loss) | 500 | (110) | 1,074 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | |||||||||
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (1) | (23) | ||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | 500 | (111) | 1,051 | ||||||||
DCL | Reportable Legal Entities | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 473 | (288) | 1,203 | ||||||||
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | 15 | 183 | (191) | ||||||||
Available-for-sale securities | 15 | 38 | |||||||||
Pension plan and SERP | 0 | ||||||||||
Derivatives | 12 | (20) | 24 | ||||||||
Comprehensive income (loss) | 500 | (110) | 1,074 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | |||||||||
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (1) | (23) | ||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | 500 | (111) | 1,051 | ||||||||
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 229 | (517) | 626 | ||||||||
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | (15) | 186 | (190) | ||||||||
Available-for-sale securities | 15 | 38 | |||||||||
Pension plan and SERP | 0 | ||||||||||
Derivatives | 12 | (9) | 22 | ||||||||
Comprehensive income (loss) | 226 | (325) | 496 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | |||||||||
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (1) | (23) | ||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | 226 | (326) | 473 | ||||||||
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 541 | (192) | 802 | ||||||||
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | (194) | 122 | (127) | ||||||||
Available-for-sale securities | 10 | 25 | |||||||||
Pension plan and SERP | 0 | ||||||||||
Derivatives | 8 | (13) | 16 | ||||||||
Comprehensive income (loss) | 355 | (73) | 716 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | |||||||||
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (1) | (15) | ||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | 355 | (74) | 701 | ||||||||
Discovery and Subsidiaries | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 681 | (313) | 1,218 | ||||||||
Other comprehensive income (loss) adjustments, net of tax: | |||||||||||
Currency translation | (189) | 183 | (191) | ||||||||
Available-for-sale securities | 15 | 38 | |||||||||
Pension plan and SERP | 3 | ||||||||||
Derivatives | 12 | (20) | 24 | ||||||||
Comprehensive income (loss) | 507 | (135) | 1,089 | ||||||||
Comprehensive income attributable to noncontrolling interests | (67) | (1) | |||||||||
Comprehensive income attributable to redeemable noncontrolling interests | (20) | (25) | (23) | ||||||||
Comprehensive income (loss) attributable to Discovery, Inc. | $ 420 | $ (160) | $ 1,065 |
Condensed Consolidating Finan_7
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Cash (used in) provided by operating activities | $ 2,576 | $ 1,629 | $ 1,380 |
Investing Activities | |||
Payments for investments, net | (61) | (444) | (272) |
Purchases of property and equipment | (147) | (135) | (88) |
Business acquisitions, net of cash acquired | (8,565) | (60) | 0 |
Proceeds from dispositions, net of cash disposed | 107 | 29 | 19 |
Distributions from equity method investees | 1 | 77 | 87 |
Other investing activities, net | 6 | 1 | (2) |
Cash used in investing activities | (8,593) | (633) | (256) |
Financing Activities | |||
Borrowings under revolving credit facility | 0 | 350 | 613 |
Principal repayments of revolving credit facility | (200) | (475) | (835) |
Borrowings under term loan facilities | 2,000 | 0 | 0 |
Principal repayments of term loans | (2,000) | 0 | 0 |
Borrowings from debt, net of discount and including premiums | 0 | 7,488 | 498 |
Principal repayments of debt, including discount payment and premiums to par value | (16) | (650) | 0 |
Payments for bridge financing commitment fees | 0 | (40) | 0 |
Principal repayments of capital lease obligations | (50) | (33) | (28) |
Repurchases of stock | 0 | (603) | (1,374) |
Principal repayments of capital lease obligations | 58 | (57) | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (76) | (30) | (22) |
Share-based plan proceeds, net | 54 | 16 | 39 |
Borrowings under program financing line of credit | 22 | 0 | 0 |
Share-based plan proceeds, net | 72 | 46 | 50 |
Hedge of borrowings from debt instruments | 0 | 0 | 40 |
Inter-company contributions and other financing activities, net | (12) | (82) | (13) |
Cash (used in) provided by financing activities | (283) | 5,951 | (1,184) |
Effect of exchange rate changes on cash and cash equivalents | (23) | 62 | (30) |
Net change in cash and cash equivalents | (6,323) | 7,009 | (90) |
Cash and cash equivalents, beginning of period | 7,309 | 300 | 390 |
Cash and cash equivalents, end of period | 986 | 7,309 | 300 |
Reclassifications and Eliminations | |||
Operating Activities | |||
Cash (used in) provided by operating activities | 0 | 0 | 0 |
Investing Activities | |||
Payments for investments, net | 0 | 0 | 0 |
Purchases of property and equipment | 0 | 0 | 0 |
Business (acquisitions) dispositions, net of cash (acquired) disposed | 0 | ||
Business acquisitions, net of cash acquired | 0 | ||
Payments (receipts) for derivative instruments, net | 0 | 0 | |
Proceeds from dispositions, net of cash disposed | 0 | 0 | 0 |
Distributions from equity method investees | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | ||
Intercompany distributions, and other investing activities, net | (12) | (42) | (30) |
Other investing activities, net | 0 | 0 | |
Cash used in investing activities | (12) | (42) | (30) |
Financing Activities | |||
Borrowings from long term debt, net of discounts and issuance costs | 0 | 0 | 0 |
Borrowings under revolving credit facility | 0 | 0 | |
Principal repayments of revolving credit facility | 0 | 0 | 0 |
Borrowings under term loan facilities | 0 | ||
Principal repayments of term loans | 0 | ||
Principal repayment of long term debt | 0 | ||
Borrowings from debt, net of discount and including premiums | 0 | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | ||
Payments for bridge financing commitment fees | 0 | ||
Principal repayments of capital lease obligations | 0 | 0 | 0 |
Repurchases of stock | 0 | 0 | |
Prepayments of common stock repurchase contracts | 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 | ||
Distributions to redeemable noncontrolling interests | 0 | 0 | |
Share-based plan proceeds, net | 0 | 0 | |
Hedge of borrowings from debt instruments | 0 | ||
Intercompany distributions | 12 | 42 | 30 |
Inter-company contributions and other financing activities, net | 0 | 0 | |
Cash (used in) provided by financing activities | 12 | 42 | 30 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 |
Discovery | Reportable Legal Entities | |||
Operating Activities | |||
Cash (used in) provided by operating activities | (15) | (3) | (20) |
Investing Activities | |||
Payments for investments, net | 0 | 0 | 0 |
Purchases of property and equipment | 0 | 0 | 0 |
Business (acquisitions) dispositions, net of cash (acquired) disposed | (8,714) | ||
Business acquisitions, net of cash acquired | 0 | ||
Payments (receipts) for derivative instruments, net | 0 | 0 | |
Proceeds from dispositions, net of cash disposed | 0 | 0 | 0 |
Distributions from equity method investees | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | ||
Intercompany distributions, and other investing activities, net | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | |
Cash used in investing activities | (8,714) | 0 | 0 |
Financing Activities | |||
Borrowings from long term debt, net of discounts and issuance costs | 0 | 0 | 0 |
Borrowings under revolving credit facility | 0 | 0 | |
Principal repayments of revolving credit facility | 0 | 0 | 0 |
Borrowings under term loan facilities | 0 | ||
Principal repayments of term loans | 0 | ||
Principal repayment of long term debt | 0 | ||
Borrowings from debt, net of discount and including premiums | 0 | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | ||
Payments for bridge financing commitment fees | 0 | ||
Principal repayments of capital lease obligations | 0 | 0 | 0 |
Repurchases of stock | (603) | (1,374) | |
Prepayments of common stock repurchase contracts | (57) | ||
Principal repayments of capital lease obligations | 58 | ||
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | ||
Share-based plan proceeds, net | 51 | ||
Borrowings under program financing line of credit | 0 | ||
Distributions to redeemable noncontrolling interests | 0 | 0 | |
Share-based plan proceeds, net | 16 | 39 | |
Hedge of borrowings from debt instruments | 0 | ||
Intercompany distributions | 8,678 | 0 | 0 |
Inter-company contributions and other financing activities, net | 532 | 1,412 | |
Cash (used in) provided by financing activities | 8,729 | 3 | 20 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 |
Scripps Inc. | Reportable Legal Entities | |||
Operating Activities | |||
Cash (used in) provided by operating activities | (85) | ||
Investing Activities | |||
Payments for investments, net | 0 | ||
Purchases of property and equipment | 0 | ||
Business (acquisitions) dispositions, net of cash (acquired) disposed | 54 | ||
Payments (receipts) for derivative instruments, net | 0 | ||
Proceeds from dispositions, net of cash disposed | 0 | ||
Distributions from equity method investees | 0 | ||
Proceeds from sale of assets | 0 | ||
Intercompany distributions, and other investing activities, net | 11 | ||
Cash used in investing activities | 65 | ||
Financing Activities | |||
Borrowings from long term debt, net of discounts and issuance costs | 0 | ||
Principal repayments of revolving credit facility | 0 | ||
Borrowings under term loan facilities | 0 | ||
Principal repayments of term loans | 0 | ||
Principal repayment of long term debt | 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 | ||
Intercompany distributions | 335 | ||
Cash (used in) provided by financing activities | 335 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | ||
Net change in cash and cash equivalents | 315 | ||
Cash and cash equivalents, beginning of period | 0 | ||
Cash and cash equivalents, end of period | 315 | 0 | |
DCH | Reportable Legal Entities | |||
Operating Activities | |||
Cash (used in) provided by operating activities | 11 | 3 | (9) |
Investing Activities | |||
Payments for investments, net | 0 | 0 | 0 |
Purchases of property and equipment | 0 | 0 | 0 |
Business (acquisitions) dispositions, net of cash (acquired) disposed | 0 | ||
Business acquisitions, net of cash acquired | 0 | ||
Payments (receipts) for derivative instruments, net | 0 | 0 | |
Proceeds from dispositions, net of cash disposed | 0 | 0 | 0 |
Distributions from equity method investees | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | ||
Intercompany distributions, and other investing activities, net | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | |
Cash used in investing activities | 0 | 0 | 0 |
Financing Activities | |||
Borrowings from long term debt, net of discounts and issuance costs | 0 | 0 | 0 |
Borrowings under revolving credit facility | 0 | 0 | |
Principal repayments of revolving credit facility | 0 | 0 | 0 |
Borrowings under term loan facilities | 0 | ||
Principal repayments of term loans | 0 | ||
Principal repayment of long term debt | 0 | ||
Borrowings from debt, net of discount and including premiums | 0 | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | ||
Payments for bridge financing commitment fees | 0 | ||
Principal repayments of capital lease obligations | 0 | 0 | 0 |
Repurchases of stock | 0 | 0 | |
Prepayments of common stock repurchase contracts | 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 | ||
Distributions to redeemable noncontrolling interests | 0 | 0 | |
Share-based plan proceeds, net | 0 | 0 | |
Hedge of borrowings from debt instruments | 0 | ||
Intercompany distributions | (11) | 0 | 0 |
Inter-company contributions and other financing activities, net | (3) | 9 | |
Cash (used in) provided by financing activities | (11) | (3) | 9 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 |
DCL | Reportable Legal Entities | |||
Operating Activities | |||
Cash (used in) provided by operating activities | (111) | 476 | 249 |
Investing Activities | |||
Payments for investments, net | (10) | (45) | (124) |
Purchases of property and equipment | (24) | (43) | (18) |
Business (acquisitions) dispositions, net of cash (acquired) disposed | 0 | ||
Business acquisitions, net of cash acquired | 0 | ||
Payments (receipts) for derivative instruments, net | 0 | (111) | |
Proceeds from dispositions, net of cash disposed | 0 | 0 | 0 |
Distributions from equity method investees | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | ||
Intercompany distributions, and other investing activities, net | 12 | 42 | 30 |
Other investing activities, net | (1) | 0 | |
Cash used in investing activities | (22) | (158) | (112) |
Financing Activities | |||
Borrowings from long term debt, net of discounts and issuance costs | (5) | (48) | (45) |
Borrowings under revolving credit facility | 350 | 350 | |
Principal repayments of revolving credit facility | 0 | (475) | (225) |
Borrowings under term loan facilities | 2,000 | ||
Principal repayments of term loans | (2,000) | ||
Principal repayment of long term debt | (16) | ||
Borrowings from debt, net of discount and including premiums | 7,488 | 498 | |
Principal repayments of debt, including discount payment and premiums to par value | (650) | ||
Payments for bridge financing commitment fees | (40) | ||
Principal repayments of capital lease obligations | (10) | (7) | (5) |
Repurchases of stock | 0 | 0 | |
Prepayments of common stock repurchase contracts | 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 | 22 | ||
Distributions to redeemable noncontrolling interests | 0 | 0 | |
Share-based plan proceeds, net | 0 | 0 | |
Hedge of borrowings from debt instruments | 40 | ||
Intercompany distributions | (6,597) | 0 | 0 |
Inter-company contributions and other financing activities, net | (156) | (733) | |
Cash (used in) provided by financing activities | (6,606) | 6,462 | (120) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | (6,739) | 6,780 | 17 |
Cash and cash equivalents, beginning of period | 6,800 | 20 | 3 |
Cash and cash equivalents, end of period | 61 | 6,800 | 20 |
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | |||
Operating Activities | |||
Cash (used in) provided by operating activities | 1,543 | 1,153 | 1,160 |
Investing Activities | |||
Payments for investments, net | (59) | (399) | (148) |
Purchases of property and equipment | (94) | (92) | (70) |
Business (acquisitions) dispositions, net of cash (acquired) disposed | 0 | ||
Business acquisitions, net of cash acquired | (60) | ||
Payments (receipts) for derivative instruments, net | (2) | 10 | |
Proceeds from dispositions, net of cash disposed | 107 | 29 | 19 |
Distributions from equity method investees | 1 | 77 | 87 |
Proceeds from sale of assets | 68 | ||
Intercompany distributions, and other investing activities, net | 4 | 0 | 0 |
Other investing activities, net | 2 | (2) | |
Cash used in investing activities | 25 | (433) | (114) |
Financing Activities | |||
Borrowings from long term debt, net of discounts and issuance costs | 0 | 0 | 0 |
Borrowings under revolving credit facility | 263 | ||
Principal repayments of revolving credit facility | (200) | (610) | |
Borrowings under term loan facilities | 0 | ||
Principal repayments of term loans | 0 | ||
Principal repayment of long term debt | 0 | ||
Borrowings from debt, net of discount and including premiums | 0 | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | ||
Payments for bridge financing commitment fees | 0 | ||
Principal repayments of capital lease obligations | (28) | (26) | (23) |
Repurchases of stock | 0 | 0 | |
Prepayments of common stock repurchase contracts | 0 | ||
Principal repayments of capital lease obligations | 0 | ||
Distributions to noncontrolling interests and redeemable noncontrolling interests | (26) | ||
Share-based plan proceeds, net | 3 | ||
Borrowings under program financing line of credit | 0 | ||
Distributions to redeemable noncontrolling interests | (30) | (22) | |
Share-based plan proceeds, net | 0 | 0 | |
Hedge of borrowings from debt instruments | 0 | ||
Intercompany distributions | (1,336) | (42) | (30) |
Inter-company contributions and other financing activities, net | (455) | (701) | |
Cash (used in) provided by financing activities | (1,587) | (553) | (1,123) |
Effect of exchange rate changes on cash and cash equivalents | (15) | 62 | (30) |
Net change in cash and cash equivalents | (34) | 229 | (107) |
Cash and cash equivalents, beginning of period | 509 | 280 | 387 |
Cash and cash equivalents, end of period | 475 | 509 | 280 |
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | |||
Operating Activities | |||
Cash (used in) provided by operating activities | 1,233 | 0 | 0 |
Investing Activities | |||
Payments for investments, net | 8 | 0 | 0 |
Purchases of property and equipment | (29) | 0 | 0 |
Business (acquisitions) dispositions, net of cash (acquired) disposed | 95 | ||
Business acquisitions, net of cash acquired | 0 | ||
Payments (receipts) for derivative instruments, net | 0 | 0 | |
Proceeds from dispositions, net of cash disposed | 0 | 0 | 0 |
Distributions from equity method investees | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | ||
Intercompany distributions, and other investing activities, net | (9) | 0 | 0 |
Other investing activities, net | 0 | 0 | |
Cash used in investing activities | 65 | 0 | 0 |
Financing Activities | |||
Borrowings from long term debt, net of discounts and issuance costs | 0 | 0 | 0 |
Borrowings under revolving credit facility | 0 | 0 | |
Principal repayments of revolving credit facility | 0 | 0 | 0 |
Borrowings under term loan facilities | 0 | ||
Principal repayments of term loans | 0 | ||
Principal repayment of long term debt | 0 | ||
Borrowings from debt, net of discount and including premiums | 0 | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | ||
Payments for bridge financing commitment fees | 0 | ||
Principal repayments of capital lease obligations | (12) | 0 | 0 |
Repurchases of stock | 0 | 0 | |
Prepayments of common stock repurchase contracts | 0 | ||
Principal repayments of capital lease obligations | 0 | ||
Distributions to noncontrolling interests and redeemable noncontrolling interests | (50) | ||
Share-based plan proceeds, net | 0 | ||
Borrowings under program financing line of credit | 0 | ||
Distributions to redeemable noncontrolling interests | 0 | 0 | |
Share-based plan proceeds, net | 0 | 0 | |
Hedge of borrowings from debt instruments | 0 | ||
Intercompany distributions | (1,093) | 0 | 0 |
Inter-company contributions and other financing activities, net | 0 | 0 | |
Cash (used in) provided by financing activities | (1,155) | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | (8) | 0 | 0 |
Net change in cash and cash equivalents | 135 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 135 | 0 | 0 |
Discovery and Subsidiaries | |||
Operating Activities | |||
Cash (used in) provided by operating activities | 2,576 | 1,629 | 1,380 |
Investing Activities | |||
Payments for investments, net | (61) | (444) | (272) |
Purchases of property and equipment | (147) | (135) | (88) |
Business (acquisitions) dispositions, net of cash (acquired) disposed | (8,565) | ||
Business acquisitions, net of cash acquired | (60) | ||
Payments (receipts) for derivative instruments, net | (2) | (101) | |
Proceeds from dispositions, net of cash disposed | 107 | 29 | 19 |
Distributions from equity method investees | 1 | 77 | 87 |
Proceeds from sale of assets | 68 | ||
Intercompany distributions, and other investing activities, net | 6 | 0 | 0 |
Other investing activities, net | 1 | (2) | |
Cash used in investing activities | (8,593) | (633) | (256) |
Financing Activities | |||
Borrowings from long term debt, net of discounts and issuance costs | (5) | (48) | (45) |
Borrowings under revolving credit facility | 350 | 613 | |
Principal repayments of revolving credit facility | (200) | (475) | (835) |
Borrowings under term loan facilities | 2,000 | ||
Principal repayments of term loans | (2,000) | ||
Principal repayment of long term debt | (16) | ||
Borrowings from debt, net of discount and including premiums | 7,488 | 498 | |
Principal repayments of debt, including discount payment and premiums to par value | (650) | ||
Payments for bridge financing commitment fees | (40) | ||
Principal repayments of capital lease obligations | (50) | (33) | (28) |
Repurchases of stock | (603) | (1,374) | |
Prepayments of common stock repurchase contracts | (57) | ||
Principal repayments of capital lease obligations | 58 | ||
Distributions to noncontrolling interests and redeemable noncontrolling interests | (76) | ||
Share-based plan proceeds, net | 54 | ||
Borrowings under program financing line of credit | 22 | ||
Distributions to redeemable noncontrolling interests | (30) | (22) | |
Share-based plan proceeds, net | 16 | 39 | |
Hedge of borrowings from debt instruments | 40 | ||
Intercompany distributions | (12) | 0 | 0 |
Inter-company contributions and other financing activities, net | (82) | (13) | |
Cash (used in) provided by financing activities | (283) | 5,951 | (1,184) |
Effect of exchange rate changes on cash and cash equivalents | (23) | 62 | (30) |
Net change in cash and cash equivalents | (6,323) | 7,009 | (90) |
Cash and cash equivalents, beginning of period | 7,309 | 300 | 390 |
Cash and cash equivalents, end of period | $ 986 | $ 7,309 | $ 300 |