Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 22, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Discovery, Inc. | |
Entity Central Index Key | 0001437107 | |
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-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Series A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 157,848,790 | |
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) | 360,553,643 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 745 | $ 986 |
Receivables, net | 2,625 | 2,620 |
Content rights, net | 364 | 313 |
Prepaid expenses and other current assets | 291 | 312 |
Total current assets | 4,025 | 4,231 |
Noncurrent content rights, net | 3,098 | 3,069 |
Property and equipment, net | 802 | 800 |
Goodwill, net | 13,037 | 13,006 |
Intangible assets, net | 9,366 | 9,674 |
Equity method investments, including note receivable (See Note 3) | 955 | 935 |
Other noncurrent assets | 1,161 | 835 |
Total assets | 32,444 | 32,550 |
Current liabilities: | ||
Accounts payable | 314 | 325 |
Accrued liabilities | 1,538 | 1,604 |
Deferred revenues | 236 | 249 |
Current portion of debt | 1,387 | 1,819 |
Total current liabilities | 3,475 | 3,997 |
Noncurrent portion of debt | 14,956 | 14,974 |
Deferred income taxes | 1,700 | 1,811 |
Other noncurrent liabilities | 1,573 | 1,251 |
Total liabilities | 21,704 | 22,033 |
Commitments and contingencies (See Note 18) | ||
Redeemable noncontrolling interests | 440 | 415 |
Discovery, Inc. stockholders’ equity: | ||
Additional paid-in capital | 10,670 | 10,647 |
Treasury stock, at cost: 167 shares | (6,737) | (6,737) |
Retained earnings | 5,663 | 5,254 |
Accumulated other comprehensive loss | (895) | (785) |
Total Discovery, Inc. stockholders' equity | 8,708 | 8,386 |
Noncontrolling interests | 1,592 | 1,716 |
Total equity | 10,300 | 10,102 |
Total liabilities and equity | 32,444 | 32,550 |
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 | 2 |
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 | $ 5 |
Treasury stock, at cost: 167 shares | $ (6,600) |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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) | 161,000,000 | 160,000,000 |
Common stock outstanding (in shares) | 158,000,000 | 157,000,000 |
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) | 525,000,000 | 524,000,000 |
Common stock outstanding (in shares) | 361,000,000 | 360,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Revenues | $ 2,707 | $ 2,307 |
Costs and expenses: | ||
Costs of revenues, excluding depreciation and amortization | 930 | 1,060 |
Selling, general and administrative | 626 | 609 |
Depreciation and amortization | 372 | 193 |
Restructuring and other charges | 5 | 241 |
Total costs and expenses | 1,933 | 2,103 |
Operating income | 774 | 204 |
Interest expense, net | (182) | (177) |
Loss on extinguishment of debt | (5) | 0 |
Income (loss) from equity investees, net | 11 | (22) |
Other expense, net | (27) | (22) |
Income (loss) before income taxes | 571 | (17) |
Income tax (expense) benefit | (153) | 20 |
Net income | 418 | 3 |
Net income attributable to noncontrolling interests | (29) | (5) |
Net income attributable to redeemable noncontrolling interests | (5) | (6) |
Net income (loss) available to Discovery, Inc. | $ 384 | $ (8) |
Series A, B and C Common Stock | ||
Net income (loss) per share allocated to Discovery, Inc. Series A, B and C common stockholders: | ||
Basic (in dollars per share) | $ 0.53 | $ (0.01) |
Diluted (in dollars per share) | $ 0.53 | $ (0.01) |
Weighted average shares outstanding: | ||
Basic (in shares) | 524 | 422 |
Diluted (in shares) | 714 | 609 |
Advertising | ||
Revenues: | ||
Revenues | $ 1,415 | $ 1,012 |
Distribution | ||
Revenues: | ||
Revenues | 1,224 | 1,051 |
Other | ||
Revenues: | ||
Revenues | $ 68 | $ 244 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 418 | $ 3 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (69) | 3 |
Derivatives | (11) | (5) |
Comprehensive income | 338 | 1 |
Comprehensive income (loss) attributable to noncontrolling interests | (29) | (5) |
Comprehensive income (loss) attributable to redeemable noncontrolling interests | (5) | (6) |
Comprehensive income (loss) attributable to Discovery, Inc. | $ 304 | $ (10) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net income | $ 418 | $ 3 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Share-based compensation expense | 30 | 15 |
Depreciation and amortization | 372 | 193 |
Content rights amortization and impairment | 697 | 751 |
Remeasurement gain on previously held equity interest | (8) | 0 |
Equity in earnings of equity method investee companies, net of cash distributions | 3 | 36 |
Deferred income taxes | (43) | (35) |
Other, net | 44 | 67 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Receivables, net | (10) | (36) |
Content rights and payables, net | (816) | (698) |
Accounts payable and accrued liabilities | (211) | (171) |
Prepaid income taxes and income taxes receivable | 41 | (42) |
Foreign currency and other, net | 25 | 77 |
Cash provided by operating activities | 542 | 160 |
Investing Activities | ||
Business acquisitions, net of cash acquired | (22) | (8,565) |
Payments for investments, net | (34) | (22) |
Purchases of property and equipment | (44) | (48) |
Proceeds from (payments for) derivative instruments, net | 5 | (42) |
Other investing activities, net | 1 | 2 |
Cash used in investing activities | (94) | (8,675) |
Financing Activities | ||
Borrowings under term loan facilities | 0 | 2,000 |
Principal repayments of debt, including discount payment and premiums to par value | (453) | 0 |
Principal repayments of finance lease obligations | (17) | (13) |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (163) | (2) |
Share-based plan (payments) proceeds, net | (15) | 23 |
(Repayments) borrowings under program financing line of credit, net | (3) | 22 |
Other financing activities, net | (1) | (11) |
Cash (used in) provided by financing activities | (652) | 2,019 |
Effect of exchange rate changes on cash and cash equivalents | (37) | (1) |
Net change in cash and cash equivalents | (241) | (6,497) |
Cash and cash equivalents, beginning of period | 986 | 7,309 |
Cash and cash equivalents, end of period | $ 745 | $ 812 |
Consolidated Statements of Equi
Consolidated Statements of Equity (unaudited) - 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 | Scripps Networks | Scripps NetworksCommon Stock | Scripps NetworksAdditional Paid-In Capital | Scripps NetworksDiscovery, Inc. Stockholders’ Equity | Scripps NetworksNoncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2017 | 14 | 547 | ||||||||||||
Beginning balance at Dec. 31, 2017 | $ 4,610 | $ 0 | $ 5 | $ 7,295 | $ (6,737) | $ 4,632 | $ (585) | $ 4,610 | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income available to Discovery, Inc. and attributable to noncontrolling interests | (3) | (8) | (8) | 5 | ||||||||||
Other comprehensive loss | (2) | (2) | (2) | |||||||||||
Share-based compensation | 41 | 41 | 41 | |||||||||||
Tax settlements associated with share-based compensation | (16) | (16) | (16) | |||||||||||
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) | 4 | |||||||||||||
Issuance of stock in connection with share-based plans | 39 | 39 | 39 | |||||||||||
Redeemable noncontrolling interest adjustments to redemption value | 0 | |||||||||||||
Ending balance (in shares) at Mar. 31, 2018 | 14 | 690 | ||||||||||||
Ending balance at Mar. 31, 2018 | 9,594 | $ 0 | $ 6 | 10,576 | (6,737) | 4,657 | (613) | 7,889 | 1,705 | |||||
Beginning balance (in shares) at Dec. 31, 2018 | 14 | 691 | ||||||||||||
Beginning balance at Dec. 31, 2018 | 10,102 | $ 0 | $ 7 | 10,647 | (6,737) | 5,254 | (785) | 8,386 | 1,716 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income available to Discovery, Inc. and attributable to noncontrolling interests | 413 | 384 | 384 | 29 | ||||||||||
Other comprehensive loss | (80) | (80) | (80) | |||||||||||
Share-based compensation | 38 | 38 | 38 | |||||||||||
Tax settlements associated with share-based compensation | (21) | (21) | (21) | |||||||||||
Dividends paid to noncontrolling interests | (153) | (153) | ||||||||||||
Issuance of stock in connection with share-based plans (in shares) | 2 | |||||||||||||
Issuance of stock in connection with share-based plans | 6 | 6 | 6 | |||||||||||
Redeemable noncontrolling interest adjustments to redemption value | (5) | (5) | (5) | |||||||||||
Ending balance (in shares) at Mar. 31, 2019 | 14 | 693 | ||||||||||||
Ending balance at Mar. 31, 2019 | $ 10,300 | $ 0 | $ 7 | $ 10,670 | $ (6,737) | $ 5,663 | $ (895) | $ 8,708 | $ 1,592 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Discovery, Inc. (“Discovery” or the “Company”) is a global media company that provides content across multiple distribution platforms, including linear platforms such as pay-television ("pay-TV"), free-to-air ("FTA") and broadcast television, authenticated GO applications, digital distribution arrangements and content licensing agreements. The Company also operates a portfolio of digital direct-to-consumer products and production studios. As further discussed in Note 2, on March 6, 2018 , the Company acquired Scripps Networks Interactive, Inc. ("Scripps Networks") and changed its name from "Discovery Communications, Inc." to "Discovery, Inc." The Company presents the following business units: U.S. Networks, consisting principally of domestic television networks and digital content services, and International Networks, consisting principally of international television networks and digital content services; and Other, consisting of a production studio and previously consolidated curriculum-based education business that was sold on April 30, 2018 . Financial information for Discovery’s reportable segments is discussed in Note 19. 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 equity method investment or an equity investment without a readily determinable fair value. As part of its evaluation, the Company makes judgments in determining whether the entity is a variable interest entity ("VIE") and, if so, whether it is the primary beneficiary of the VIE and is thus required to consolidate the entity. (See Note 3.) Inter-company accounts and transactions between consolidated entities have been eliminated in consolidation. Unaudited Interim Financial Statements These consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles (“GAAP”) applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Discovery’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “ 2018 Form 10-K”). Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that affect the amounts and disclosures reported in the consolidated financial statements and accompanying notes. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change as actual results may differ materially from those estimates. These estimates are sometimes complex, sensitive to changes in assumptions and may require fair value determinations using Level 3 fair value measurements. Estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, allowances for doubtful accounts, content rights, depreciation and amortization, business combinations, share-based compensation, defined benefit plans, income taxes, other financial instruments, contingencies and the determination of whether the Company is the primary beneficiary of entities in which it holds variable interests. Accounting and Reporting Pronouncements Adopted Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, which requires lessees to recognize almost all of their leases on the balance sheet by recording a right-of-use asset and lease 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 Company adopted ASU 2016-02 effective January 1, 2019 and elected to apply the guidance at the effective date without recasting the comparative periods presented. Additionally, the Company elected to apply practical expedients allowing 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 also elected to not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component are accounted for as a single lease component. The Company did 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 did not elect to apply the short-term lease scope exemption. The adoption of ASU 2016-02 resulted in recognition of operating lease right-of-use assets of $342 million (included in “Other noncurrent assets”) and operating lease liabilities of $372 million (included in “Accrued liabilities” and “Other noncurrent liabilities”). The operating lease right-of use assets recorded upon adoption were offset by prepaid and deferred rent balances and ASC 420 liabilities totaling approximately $30 million . In addition, capital lease obligations totaling $252 million as of December 31, 2018 (known as finance lease liabilities effective January 1, 2019) were reclassified from current and noncurrent debt to components of "Accrued liabilities" and "Other noncurrent liabilities" on the consolidated balance sheet to conform with the new presentation. The adoption did not affect the pattern of expense recognition, cash flow presentation, or the Company's ability to meet its financial covenants. See Note 7 for further information. 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 Company adopted ASU 2018-02 effective January 1, 2019, which resulted in a reclassification of $30 million between accumulated other comprehensive loss and retained earnings on the consolidated balance sheet and the consolidated statement of equity. Tax effects unrelated to the TCJA are released from accumulated other comprehensive loss using either the specific identification approach or the portfolio approach based on the nature of the underlying item. 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 8. Accounting and Reporting Pronouncements Not Yet Adopted Targeted Improvements to Accounting for Financial Instruments, Credit Losses, and Hedging Activities In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The new ASU provides narrow-scope amendments to help apply these recent standards. The Company will be required to adopt the provisions of this ASU on January 1, 2020, with early adoption permitted for certain amendments. The Company is currently assessing the impact that this pronouncement will have on its consolidated financial statements. Content In March 2019, the FASB issued ASU 2019-02, which aligns the accounting for production costs of episodic television series with the accounting for production costs of films. In addition, ASU 2019-02 modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements in Accounting Standards Codification (“ASC”) 926-20 and the impairment, presentation and disclosure requirements in ASC 920-350. This ASU must be adopted on a prospective basis and is effective for annual periods beginning after December 15, 2019, including interim periods within those years, with early adoption permitted. The Company is currently evaluating the impact that this pronouncement will have on its consolidated financial statements. Goodwill In January 2017, the FASB issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the former two-step goodwill impairment test and eliminating 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 not to exceed the amount of goodwill recorded for that reporting unit. Goodwill impairment will no longer be measured as the excess of the carrying amount of goodwill over its implied fair value determined by assigning the fair value of a reporting unit to all of its assets and liabilities as if it had been acquired in a business combination. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 . This ASU 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 this pronouncement will have on its 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 requires entities to use a new, forward-looking “expected loss” model that would generally result in the earlier recognition of allowances for losses. This ASU is effective for annual periods beginning after December 15, 2019, including interim periods within those years, with early adoption permitted. Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. The Company is currently evaluating the impact of this standard on its consolidated financial statements, including accounting policies, processes, and systems. Concentrations Risk Customers The Company has long-term contracts with distributors around the world. For the U.S. Networks segment, approximately 97% of distribution revenue comes from the Company's largest 10 distributors in the U.S. For the International Networks segment, approximately 39% of distribution revenue comes from the Company's largest 10 distributors outside of the U.S. Agreements in place with the 10 largest cable and satellite operators in the U.S. Networks and International Networks expire at various times from 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 the three months ended March 31, 2019 or 2018 . As of March 31, 2019 and December 31, 2018 , the Company’s trade receivables did not represent a significant concentration of credit risk as the customers and markets in which the Company operates are varied and dispersed across many geographic areas. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Scripps Networks On March 6, 2018 , Discovery acquired Scripps Networks pursuant to the Agreement and Plan of Merger (the "Merger Agreement") by and among Discovery, Scripps Networks and Skylight Merger Sub, Inc. dated July 30, 2017 (the "acquisition of Scripps Networks"). The acquisition of Scripps Networks allows the Company to offer complementary brands with an extensive library of original programming to consumers and to create a scale player with the ability to compete for audiences and advertising revenue. The acquisition is intended to extend Scripps Networks' content to a broader international audience through Discovery's global distribution infrastructure. Finally, the acquisition of Scripps Networks is expected to create cost synergies for the Company. The consideration paid for the acquisition of Scripps Networks consisted of (i) for Scripps Networks shareholders that did not make an election or elected to receive the mixed consideration, $65.82 in cash and 1.0584 shares of Discovery Series C common stock for each Scripps Networks share, (ii) for Scripps Networks shareholders that elected to receive the cash consideration, $90.00 in cash for each Scripps Networks share, (iii) for Scripps Networks shareholders that elected to receive the stock consideration, 3.9392 shares of Discovery Series C common stock for each Scripps Networks share, subject to the terms and conditions set forth in the Merger Agreement and (iv) transaction costs that Discovery paid for costs incurred by Scripps Networks in conjunction with the acquisition. The following table summarizes the components of the aggregate consideration paid for the acquisition of Scripps Networks (in millions of dollars and shares, except for per share amounts, share conversion ratio and stock option conversion ratio) as of March 6, 2018 . Scripps Networks equity Scripps Networks shares outstanding 131 Cash consideration per Scripps Networks share $ 65.82 Cash portion of consideration $ 8,590 Scripps Networks shares outstanding 131 Share conversion ratio per Scripps Networks share 1.0584 Discovery Series C common stock 138 Discovery Series C common stock price per share $ 23.01 Equity portion of consideration $ 3,179 Shares awarded under Scripps Networks share-based compensation programs 3 Scripps Networks share-based compensation awards converting to cash 2 Average cash consideration per share awarded less applicable exercise price $ 46.90 Cash portion of consideration $ 88 Scripps Networks share-based compensation awards 1 Share-based compensation conversion ratio (based on intrinsic value per award) 3 Discovery Series C common stock issued (1) or share-based compensation converted (2) 3 Average equity value (intrinsic value of Discovery Series C common stock or options to be issued) $ 15.19 Share-based compensation equity value $ 51 Less: post-combination compensation expense (12 ) Equity portion of consideration 39 Scripps Networks transaction costs paid by Discovery 117 Total consideration paid $ 12,013 Balances reflect rounding of dollar and share amounts to millions, which may result in differences for recalculated standalone amounts compared with the amounts presented above. The Company applied the acquisition method of accounting to Scripps Networks' business, whereby the excess of the fair value of the business over the fair value of identifiable net assets was allocated to goodwill. Goodwill reflects workforce and synergies expected from cost savings, operations and revenue enhancements of the combined company that are expected to result from the acquisition. The goodwill recorded as part of this acquisition was allocated to the U.S. Networks and International Networks reportable segments in the amounts of $5.3 billion and $817 million , respectively, and is not amortizable for tax purposes. The Company used discounted cash flow ("DCF") analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation. The fair value of equity interests previously held by Scripps Networks was determined using the discounted cash flow and market value methods. The fair value of trade-names and trademarks was determined using an income approach based on the relief from royalty method; the remaining intangibles were determined using an income approach based on the excess earnings method. The fair value of interest-bearing debt was determined using publicly-traded prices. For the fair value estimates, the Company used: (i) projected discounted cash flows, (ii) historical and projected financial information, (iii) synergies including cost savings and (iv) attrition rates, as relevant, that market participants would consider when estimating fair values. During the three months ended March 31, 2019 , the Company finalized the fair value of assets acquired and liabilities assumed. Measurement period adjustments were reflected in the periods in which the adjustments occurred. The adjustments 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. The 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 Final March 6, 2018 Accounts receivable $ 783 $ — $ 783 Other current assets 421 (9 ) 412 Content rights 1,088 (14 ) 1,074 Property and equipment 315 — 315 Goodwill 6,003 154 6,157 Intangible assets 9,175 — 9,175 Equity method investments, including note receivable 870 (157 ) 713 Other noncurrent assets 111 4 115 Current liabilities assumed (494 ) (105 ) (599 ) Debt assumed (2,481 ) — (2,481 ) Deferred income taxes (1,695 ) 123 (1,572 ) Other noncurrent liabilities (383 ) 4 (379 ) Noncontrolling interests (1,700 ) — (1,700 ) Total consideration paid $ 12,013 $ — $ 12,013 The table below presents a summary of intangible assets acquired (in millions) 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 Other On January 8, 2019 , the Company paid $41 million in cash to acquire a controlling interest in Play Sports Group Limited ("PSG"), increasing Discovery's ownership stake from 20.1% to 70.7% . The Company recognized a gain of $8 million , which represents the difference between the carrying value and the fair value of the previously held 20.1% equity method investment. The gain is included in other expense, net in the Company's consolidated statement of operations (see Note 16). The Company consolidated PSG under the voting interest model upon the closing of the transaction and as a result, the accounting for PSG was changed from an equity method investment to a consolidated subsidiary. The Company applied the acquisition method of accounting to PSG, whereby the excess of the fair value of the business over the fair value of identifiable net assets was allocated to goodwill. The Company recorded preliminary net assets of $79 million , subject to adjustment based on the final assessment of the fair values of the assets acquired and liabilities assumed, including cash of $19 million , intangible assets of $29 million , redeemable noncontrolling interest of $25 million , and goodwill of $37 million . Intangible assets consist of trademarks and trade names, advertiser relationships, affiliate backlog and broadcast licenses. The goodwill reflects the workforce and synergies expected from broader exposure to the cycling entertainment sector. The goodwill recorded as part of this acquisition is included in the International Networks reportable segment and is not amortizable for tax purposes. 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 . The information is based on the historical results of operations of the acquired business, 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 three months ended March 31, 2018 to the three months ended March 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 acquisition of Scripps Networks had taken place on January 1, 2017 , 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 this acquisition 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). Pro forma results for the three months ended March 31, 2019 are not presented below because the results for Scripps Networks are included in the Company's March 31, 2019 unaudited consolidated statement of operations for the quarterly period. Three months ended March 31, 2018 Revenues $ 2,930 Net income available to Discovery, Inc. 88 Net income per share - basic 0.08 Net income per share - diluted 0.08 Impact of Business Combination The operations of Scripps Networks discussed above were included in the consolidated financial statements as of the acquisition date of March 6, 2018. The following table presents their revenue and earnings as reported within the consolidated financial statements (in millions). Three months ended March 31, 2018 Revenues: Advertising $ 195 Distribution 69 Other 10 Total revenues $ 274 Net loss available to Discovery, Inc. $ (49 ) |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments | INVESTMENTS The Company’s investments consisted of the following (in millions). Category Balance Sheet Location March 31, 2019 December 31, 2018 Time deposits Cash and cash equivalents 2 $ — Equity securities: Money market funds Cash and cash equivalents 200 286 Mutual funds and company-owned life insurance contracts Prepaid and other current assets 25 28 Mutual funds and company-owned life insurance contracts Other noncurrent assets 206 188 Equity method investments: Equity investments Equity method investment 857 841 Note receivable Equity method investment 98 94 Equity Investments: Common stock investments with readily determinable fair values Other noncurrent assets 77 77 Equity investments without readily determinable fair value Other noncurrent assets 382 379 Total investments $ 1,847 $ 1,893 Money Market Funds and Time Deposits Money market funds and time deposits represent cash equivalents with original maturities of 90 days or less. Equity Securities Equity securities include investments in mutual funds held in separate trusts, which are owned as part of the Company’s supplemental retirement plans and company-owned life insurance contracts. (See Note 4.) Equity Method Investments The Company makes investments that support its underlying business strategy and enable it to enter new markets and develop programming. Certain of the Company's equity method investments are VIEs, for which the Company is not the primary beneficiary. As of March 31, 2019 , 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 $590 million . The Company's maximum estimated exposure excludes the non-contractual future funding of VIEs. The aggregate carrying values of these VIE investments were $546 million and $528 million as of March 31, 2019 and December 31, 2018 , respectively. The Company recognized its portion of VIE operating results with net gains of $3 million and net losses of $11 million for the three months ended March 31, 2019 and 2018 , respectively. 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 equally 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 March 31, 2019 and December 31, 2018 , the Company’s investment in UKTV totaled $402 million and $386 million , respectively, including a note receivable of $98 million and $94 million , respectively. On April 1, 2019 , the Company announced a series of agreements with BBC , which included a ten-year licensing agreement, a new co-production deal and dissolution of the UKTV joint venture in which the Company will take full control of three lifestyle channels - Good Food, Home, and Really. BBC will make payments to the Company totaling approximately $240 million based on exchange rates in effect on April 1, 2019, which includes payment related to the channels acquisition, repayment of a portion of the debt that is currently financed by the Company, and a portion of the cash currently on UKTV's balance sheet. The transaction for the dissolution of the UKTV joint venture is expected to close in the second quarter of 2019. nC+ In connection with the acquisition of Scripps Networks, the Company acquired a 32% ownership interest in nC+, a Polish satellite distributor of television content. nC+ is controlled by Group Canal+ S.A, a French broadcaster. The Company applies the equity method of accounting to its 32% investment in nC+ ordinary shares, which provide the ability to exercise significant influence over the operating and financial policies of nC+. The Company's investment in nC+ totaled $185 million and $180 million as of March 31, 2019 and December 31, 2018 , respectively. Renewable Energy Investments During the three months ended March 31, 2018 , the Company invested $17 million in limited liability companies that sponsor renewable energy projects related to solar energy. No investments were made in these companies during the three months ended March 31, 2019 . As of March 31, 2019 and December 31, 2018 , the Company's carrying value of renewable energy investments was $90 million and $89 million , respectively. The Company has $ 4 million of future funding commitments for these investments as of March 31, 2019 , which are cancelable under limited circumstances. The Company expects these investments to result in tax benefits that reduce the Company's future tax liability and provide cash flows from the operations of the investees. These investments are considered VIEs of the Company and are accounted for 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 Company accounts for investment tax credits utilizing the flow through method. The renewable energy investments income, losses and associated tax effects were not material for the three months ended March 31, 2019 and March 31, 2018. Other Equity Method Investments At March 31, 2019 and December 31, 2018 , 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. Investor Basis Differential With the exception 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 the investments in UKTV and nC+ was attributed to amortizable intangible assets, which are included in their carrying values. Earnings from these equity investees were reduced by the amortization of these intangibles of $1 million and $7 million during the period March 6, 2018 to March 31, 2018 and the three months ended March 31, 2019 , respectively. Amortization that reduces the Company's equity in earnings of equity method investees for future periods is expected to be approximately $290 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 months ended March 31, 2019 and 2018 (in millions) is summarized in the table below. Three Months Ended March 31, 2019 2018 Selected Statement of Operations Information: Revenues $ 500 $ 286 Cost of revenues 341 201 Operating income 159 12 Pre-tax income from continuing operations 55 7 After-tax net income 43 4 Net income attributable to the entity 43 4 Common Stock Investments with Readily Determinable Fair Value The Company owns 5 million shares of common stock of Lions Gate Entertainment Corp. ("Lionsgate"), an entertainment company. Upon the adoption of ASU 2016-01 on January 1, 2018, the shares are measured at fair value, with gains and losses recorded in other expense, net, as the shares have a readily determinable fair value and the Company has the intent to retain the investment. The 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 unrealized gains and losses related to the Company's common stock investments with readily determinable fair values held at March 31, 2018 and 2019 are summarized in the table below (in millions). Three Months Ended March 31, 2019 2018 Net gains and losses recognized during the period on equity securities $ — $ 39 Less: Net gains and losses recognized on equity securities sold — — Unrealized gains and losses recognized during reporting period on equity securities still held at the reporting date $ — $ 39 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. Upon adoption of ASU 2016-01, the Lionsgate Collar no longer receives the hedge accounting designation and as such, all changes in the fair value of the Lionsgate Collar are reflected as a component of other expense, net on the consolidated statements of operations. (See Note 4 and Note 8.) 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 March 31, 2019 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 completed its quarterly qualitative assessment 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 March 31, 2019 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified in the following three categories: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Valuations derived from techniques in which one or more significant inputs are unobservable. The tables below present assets and liabilities measured at fair value on a recurring basis (in millions). March 31, 2019 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Equity securities: Money market funds Cash and cash equivalents $ 200 $ — $ — $ 200 Mutual funds Prepaid expenses and other current assets 13 — — 13 Company-owned life insurance contracts Prepaid expenses and other current assets — 12 — 12 Mutual funds Other noncurrent assets 172 — — 172 Company-owned life insurance contracts Other noncurrent assets — 34 — 34 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 — 14 — 14 Net investment hedges: Cross-currency swaps Other noncurrent assets — 60 — 60 No hedging designation: Equity (Lionsgate Collar) Prepaid expenses and other current assets — 15 — 15 Equity (Lionsgate Collar) Other noncurrent assets — 28 — 28 Total $ 462 $ 163 $ — $ 625 Liabilities Deferred compensation plan Accrued liabilities $ 33 $ — $ — $ 33 Deferred compensation plan Other noncurrent liabilities 197 — — 197 Derivatives: Cash flow hedges: Foreign exchange Accrued liabilities — 4 — 4 Interest rate swaps Accrued liabilities — 15 — 15 Net investment hedges: Cross-currency swaps Accrued liabilities — 20 — 20 Cross-currency swaps Other noncurrent liabilities — 82 — 82 No hedging designation: Foreign exchange Other noncurrent liabilities — 23 — 23 Cross-currency swaps Accrued liabilities — 1 — 1 Cross-currency swaps Other noncurrent liabilities — 1 — 1 Total $ 230 $ 146 $ — $ 376 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: 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 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 3.) The fair value of the deferred compensation plan liability was determined based on the fair value of the related investments elected by employees. Changes in the fair value of the investments are offset by changes in the fair value of the deferred compensation obligation. (See Note 3.) Common stock investments with readily determinable fair values are recorded by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. (See Note 3.) Company-owned life insurance contracts are recorded at their cash surrender value, which approximates fair value. Derivative financial instruments are comprised of foreign exchange, interest rate, credit and equity contracts. (See Note 8.) 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, borrowings under the revolving credit facility, finance and operating lease liabilities, and senior notes. The carrying values for such financial instruments, other than the senior notes, each approximated their fair values as of March 31, 2019 and December 31, 2018 . 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 billion as of March 31, 2019 and December 31, 2018 . |
Content Rights
Content Rights | 3 Months Ended |
Mar. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Content Rights | CONTENT RIGHTS The table below presents the components of content rights (in millions). March 31, 2019 December 31, 2018 Produced content rights: Completed $ 5,849 $ 5,609 In-production 639 612 Coproduced content rights: Completed 707 682 In-production 62 53 Licensed content rights: Acquired 985 1,007 Prepaid (a) 287 154 Content rights, at cost 8,529 8,117 Accumulated content rights expense (5,067 ) (4,735 ) Total content rights, net 3,462 3,382 Current portion (364 ) (313 ) Noncurrent portion $ 3,098 $ 3,069 (a) Prepaid licensed content rights includes payments for rights to the Olympic games of $145 million and $65 million reflected as noncurrent content rights on the consolidated balance sheet as of March 31, 2019 and December 31, 2018 , respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The table below presents the components of outstanding debt (in millions). March 31, 2019 December 31, 2018 5.625% Senior notes, semi-annual interest, due August 2019 $ — $ 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 477 500 2.800% Senior notes, semi-annual interest, due June 2020 600 600 5.050% Senior notes, semi-annual interest, due June 2020 789 789 4.375% Senior notes, semi-annual interest, due June 2021 640 650 2.375% Senior notes, euro denominated, annual interest, due March 2022 337 344 3.300% Senior notes, semi-annual interest, due May 2022 496 500 3.500% Senior notes, semi-annual interest, due June 2022 400 400 2.950% Senior notes, semi-annual interest, due March 2023 1,185 1,185 3.250% Senior notes, semi-annual interest, due April 2023 350 350 3.800% Senior notes, semi-annual interest, due March 2024 450 450 2.500% Senior notes, sterling denominated, annual interest, due September 2024 525 507 3.900% Senior notes, semi-annual interest, due November 2024 497 497 3.450% Senior notes, semi-annual interest, due March 2025 300 300 3.950% Senior notes, semi-annual interest, due June 2025 500 500 4.900% Senior notes, semi-annual interest, due March 2026 700 700 1.900% Senior notes, euro denominated, annual interest, due March 2027 674 688 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 225 225 Program financing line of credit 19 22 Total debt (a) 16,464 16,918 Unamortized discount, premium and debt issuance costs, net (b) (121 ) (125 ) Debt, net of unamortized discount, premium and debt issuance costs 16,343 16,793 Current portion of debt (1,387 ) (1,819 ) Noncurrent portion of debt $ 14,956 $ 14,974 (a) As a result of the adoption of ASU 2016-02, capital lease obligations totaling $252 million as of December 31, 2018 (known as finance lease liabilities effective January 1, 2019) were reclassified from current and noncurrent debt to components of "Accrued liabilities" and "Other noncurrent liabilities" on the consolidated balance sheet to conform with the new presentation. (See Note 1 and Note 7.) (b) Current portion of unamortized discount, premium, and debt issuance costs, net is $3 million . Senior Notes On March 21, 2019 , the Company redeemed $411 million aggregate principal amount of its 5.625% senior notes that had an original maturity of August 15, 2019 . The repayment included $5 million for premium over par on the 5.625% senior notes and resulted in a loss on extinguishment of debt of $5 million , which is presented as a separate line item on the Company's consolidated statement of operations. In connection with the acquisition of Scripps Networks on March 6, 2018 , the Company assumed $2.5 billion aggregate principal amount of Scripps Networks 2.750% senior notes due 2019 , 2.800% senior notes due 2020 , 3.500% senior notes due 2022 , 3.900% senior notes due 2024 and 3.950% senior notes due 2025 (the "Scripps Networks Senior Notes"). As part of accounting for the acquisition of Scripps Networks, the Scripps Networks Senior Notes were adjusted to fair value using observable trades as of the acquisition date. (See Note 2.) The fair value adjustment resulted in an opening balance sheet carrying value that is $19 million less than the face amount of the senior notes. For the three months ended March 31, 2019 , fair value adjustments of $2 million were amortized to interest expense. On April 3, 2018 , pursuant to the Offering Memorandum and Consent Solicitation Statement to Exchange dated March 5, 2018 , Discovery Communications, LLC ("DCL"), a wholly-owned subsidiary of the Company, completed the exchange of $2.3 billion aggregate principal amount of Scripps Networks Senior Notes, for $2.3 billion aggregate principal amount of DCL's 2.750% senior notes due 2019 (the "2019 Notes"), 2.800% senior notes due 2020 (the "2020 Notes"), 3.500% senior notes due 2022 (the "2022 Notes"), 3.900% senior notes due 2024 (the "2024 Notes") and 3.950% senior notes due 2025 (the "2025 Notes"). Interest on the 2019 Notes and the 2024 Notes is payable semi-annually in arrears on May 15 and November 15 of each year. 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 , $1.2 billion principal amount of 2.950% senior notes due 2023 , $1.7 billion principal amount of 3.950% senior notes due 2028 , $1.3 billion principal amount of 5.000% senior notes due 2037 , $1.3 billion principal amount of 5.200% senior notes due 2047 (collectively, the “Senior Fixed Rate Notes”) and $400 million principal amount of floating rate senior notes due 2019 (the “Senior Floating Rate Notes” and, together with the Senior Fixed Rate Notes, the “USD Notes”). Interest on the Senior Fixed Rate Notes is payable on March 20 and September 20 of each year. Interest on the Senior Floating Rate Notes is payable on March 20 , June 20 , September 20 and December 20 of each year. The USD Notes are fully and unconditionally guaranteed by the Company. On September 21, 2017, DC L also issued £400 million principal amount ( $540 million at issuance based on the exchange rate of $1.35 per pound at September 21, 2017 ) of 2.500% senior notes due 2024 (the “Sterling Notes”). Interest on the Sterling Notes is payable on September 20 of each year. 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 2.) On March 13, 2017 , DCL issued $ 450 million principal amount of 3.80% senior notes due March 13, 2024 (the "2017 USD Notes") and an additional $200 million principal amount of its existing 4.90% senior notes due March 11, 2026 (the "2016 USD Notes"). Interest on the 2017 USD Notes is payable semi-annually on March 13 and September 13 of each year. Interest on the 2016 USD Notes is payable semi-annually on March 11 and September 11 of each year. The proceeds received by DCL from the 2017 USD Notes were net of a $1 million issuance discount and $4 million of debt issuance costs. The proceeds received by DCL from the 2016 USD Notes included a $10 million issuance premium and were net of $2 million of debt issuance costs. As of March 31, 2019 , 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 22.) Term Loans On August 11, 2017 , DCL entered into a three -year delayed draw tranche and a five -year delayed draw tranche unsecured term loan credit facility (the "Term Loans"), each with a principal amount of up to $1 billion . The term of each delayed draw loan commenced on March 6, 2018 when Discovery used these funds to finance a portion of the Scripps Networks acquisition. The Term Loans' interest rates are based, at the Company's option, on either adjusted LIBOR plus a margin, or an alternate base rate plus a margin. The Company paid a commitment fee of 20 basis points per annum for each loan, based on its then-current credit rating, beginning September 28, 2017 through March 6, 2018 . As of December 31, 2018 , the Company had used cash from operations and borrowings under the commercial paper program to fully repay the Term Loan borrowings. Revolving Credit Facility On August 11, 2017 , DCL amended its $2.0 billion revolving credit facility to allow DCL and certain designated foreign subsidiaries of DCL to borrow up to $2.5 billion , including a $100 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for Euro-denominated swing line loans. Borrowing capacity under this credit facility is reduced by any outstanding borrowings under the commercial paper program. The revolving credit facility agreement amendment extends the maturity date from February 4, 2021 to August 11, 2022 . The original agreement includes the option for up to two additional 364 -day renewal periods. The credit agreement governing the revolving credit facility contains customary representations, warranties and events of default, as well as affirmative and negative covenants. In addition to the change in the revolver's capacity on August 11, 2017 , the financial covenants were modified to increase the maximum consolidated leverage ratio financial covenant to 5.50 to 1.00 , with step-downs to 5.00 to 1.00 and to 4.50 to 1.00 , one year and two years after the closing of the Scripps Networks acquisition, respectively. As of March 31, 2019 , 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 March 31, 2019 , the Company had outstanding U.S. dollar-denominated borrowings under the revolving credit facility of $225 million at a weighted average interest rate of 3.79% . 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 3.82% . The interest rate on borrowings under the revolving credit facility is variable based on DCL's then-current credit ratings for its publicly traded debt and changes in financial index rates. For U.S. dollar-denominated borrowings, the interest rate is based, at the Company's option, on either adjusted LIBOR plus a margin, or an alternate base rate plus a margin. The Company may also borrow in foreign currencies under the credit facility, at an interest rate based on adjusted LIBOR, plus a margin. The current margins are 1.300% 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 March 31, 2019 or December 31, 2018 . 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. 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 March 31, 2019 , the Company has an outstanding balance of $19 million . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating and finance leases for transponders, office space, studio facilities, and other equipment. The Company's leases have remaining lease terms of up to 15 years , some of which include options to extend the leases for up to ten additional years. Most leases are not cancelable prior to their expiration. The Company determines if an arrangement is a lease at its inception. Operating lease right-of-use ("ROU") assets are included in "Other noncurrent assets" and operating lease liabilities are included in “Accrued liabilities” and “Other noncurrent liabilities” in our March 31, 2019 consolidated balance sheet. Finance lease ROU assets are included in "Property and equipment, net" and finance lease liabilities are included in “Accrued liabilities” and “Other noncurrent liabilities” in our March 31, 2019 consolidated balance sheet. A rate implicit in the lease when readily determinable is used in arriving at the present value of lease payments. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on information available at lease commencement date for the majority of its leases. The incremental borrowing rate is based on the Company's U.S. dollar denominated senior unsecured borrowing curves using public credit ratings adjusted down to a collateralized basis using a combination of recovery rate and credit notching approaches, and translated into major contract currencies as applicable. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Variable lease payments that are based on an index or rate are included in measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in measurement of ROU assets and lease liabilities. Lease expense for operating leases is recognized on a straight-line basis. For finance leases, the Company recognizes interest expense on lease liabilities using the effective interest method and amortization of ROU assets on a straight-line basis. Because the Company elected a practical expedient allowing it not to allocate contract consideration between lease and non-lease components, these components are accounted for together under Topic 842 as lease components across all lease categories. The components of lease cost were as follows (in millions): Three Months Ended March 31, 2019 Operating lease cost $ 26 Finance lease cost: Amortization of right-of-use assets $ 11 Interest on lease liabilities 2 Total finance lease cost $ 13 Supplemental cash flow information related to leases was as follows (in millions): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 21 Financing cash flows from finance leases 17 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 4 Finance leases 2 Supplemental balance sheet information related to leases was as follows (in millions): Category Location on Balance Sheet March 31, 2019 Operating Leases Operating lease right-of-use assets Other noncurrent assets $ 326 Operating lease liabilities (current) Accrued liabilities $ 76 Operating lease liabilities (noncurrent) Other noncurrent liabilities 279 Total operating lease liabilities $ 355 Finance Leases Finance lease right-of-use assets Property and equipment, net $ 228 Finance lease liabilities (current) Accrued liabilities $ 45 Finance lease liabilities (noncurrent) Other noncurrent liabilities 197 Total finance lease liabilities $ 242 March 31, 2019 Weighted average remaining lease term: Operating leases 7 years Finance leases 7 years Weighted average discount rate: Operating leases 3.19 % Finance leases 3.60 % Maturities of lease liabilities as of March 31, 2019 were as follows (in millions): Operating Leases Finance Leases April 1, 2019 to March 31, 2020 $ 93 $ 49 April 1, 2020 to March 31, 2021 76 45 April 1, 2021 to March 31, 2022 54 40 April 1, 2022 to March 31, 2023 33 33 April 1, 2023 to March 31, 2024 27 32 Thereafter 128 69 Total lease payments 411 268 Less: Imputed interest (56 ) (26 ) Total $ 355 $ 242 As of March 31, 2019 , the Company has additional operating leases that have not yet commenced, primarily related to moving its global headquarters from Silver Spring, Maryland to New York City in 2019 , with undiscounted lease payments totaling approximately $515 million . These operating leases will commence between fiscal year 2019 and fiscal year 2021 with lease terms of 2 years to 18 years and include options to extend the term for up to 10 additional years. |
Leases | LEASES The Company has operating and finance leases for transponders, office space, studio facilities, and other equipment. The Company's leases have remaining lease terms of up to 15 years , some of which include options to extend the leases for up to ten additional years. Most leases are not cancelable prior to their expiration. The Company determines if an arrangement is a lease at its inception. Operating lease right-of-use ("ROU") assets are included in "Other noncurrent assets" and operating lease liabilities are included in “Accrued liabilities” and “Other noncurrent liabilities” in our March 31, 2019 consolidated balance sheet. Finance lease ROU assets are included in "Property and equipment, net" and finance lease liabilities are included in “Accrued liabilities” and “Other noncurrent liabilities” in our March 31, 2019 consolidated balance sheet. A rate implicit in the lease when readily determinable is used in arriving at the present value of lease payments. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on information available at lease commencement date for the majority of its leases. The incremental borrowing rate is based on the Company's U.S. dollar denominated senior unsecured borrowing curves using public credit ratings adjusted down to a collateralized basis using a combination of recovery rate and credit notching approaches, and translated into major contract currencies as applicable. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Variable lease payments that are based on an index or rate are included in measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in measurement of ROU assets and lease liabilities. Lease expense for operating leases is recognized on a straight-line basis. For finance leases, the Company recognizes interest expense on lease liabilities using the effective interest method and amortization of ROU assets on a straight-line basis. Because the Company elected a practical expedient allowing it not to allocate contract consideration between lease and non-lease components, these components are accounted for together under Topic 842 as lease components across all lease categories. The components of lease cost were as follows (in millions): Three Months Ended March 31, 2019 Operating lease cost $ 26 Finance lease cost: Amortization of right-of-use assets $ 11 Interest on lease liabilities 2 Total finance lease cost $ 13 Supplemental cash flow information related to leases was as follows (in millions): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 21 Financing cash flows from finance leases 17 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 4 Finance leases 2 Supplemental balance sheet information related to leases was as follows (in millions): Category Location on Balance Sheet March 31, 2019 Operating Leases Operating lease right-of-use assets Other noncurrent assets $ 326 Operating lease liabilities (current) Accrued liabilities $ 76 Operating lease liabilities (noncurrent) Other noncurrent liabilities 279 Total operating lease liabilities $ 355 Finance Leases Finance lease right-of-use assets Property and equipment, net $ 228 Finance lease liabilities (current) Accrued liabilities $ 45 Finance lease liabilities (noncurrent) Other noncurrent liabilities 197 Total finance lease liabilities $ 242 March 31, 2019 Weighted average remaining lease term: Operating leases 7 years Finance leases 7 years Weighted average discount rate: Operating leases 3.19 % Finance leases 3.60 % Maturities of lease liabilities as of March 31, 2019 were as follows (in millions): Operating Leases Finance Leases April 1, 2019 to March 31, 2020 $ 93 $ 49 April 1, 2020 to March 31, 2021 76 45 April 1, 2021 to March 31, 2022 54 40 April 1, 2022 to March 31, 2023 33 33 April 1, 2023 to March 31, 2024 27 32 Thereafter 128 69 Total lease payments 411 268 Less: Imputed interest (56 ) (26 ) Total $ 355 $ 242 As of March 31, 2019 , the Company has additional operating leases that have not yet commenced, primarily related to moving its global headquarters from Silver Spring, Maryland to New York City in 2019 , with undiscounted lease payments totaling approximately $515 million . These operating leases will commence between fiscal year 2019 and fiscal year 2021 with lease terms of 2 years to 18 years and include options to extend the term for up to 10 additional years. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to modify its exposure to market risks from changes in foreign currency exchange rates and interest rates. At the inception of a derivative contract, the Company designates the derivative as one of four types based on the Company's intentions and belief as to its likely effectiveness as a hedge. These four types are: (1) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), (2) a hedge of net investments in foreign operations ("net investment hedge"), (3) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), or (4) an instrument with no hedging designation. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. Unsettled derivative contracts are recorded at their gross fair values on the consolidated balance sheets. (See Note 4.) The portion of the fair value that represents cash flows occurring within one year is classified as current, and the portion related to cash flows occurring beyond one year is classified as noncurrent. Gains and losses on designated cash flow and net investment hedges are initially recognized as components of accumulated other comprehensive loss on the consolidated balance sheets and reclassified into the statements of operations in the same line item in which the hedged item is recorded and in the same period as the hedged item affects earnings. The 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 Company records gains and losses for instruments that receive no hedging designation, as a component of other expense, net on the consolidated statements of operations. 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 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 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. During the three months ended March 31, 2019 , the Company executed two forward starting swap agreements with an aggregate $500 million notional amount. The swaps were designated as cash flow hedges and will hedge the interest rate risk and overall variability of proceeds received from a potential issuance of fixed rate debt later in 2019. 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 March 31, 2019 and December 31, 2018 . March 31, 2019 December 31, 2018 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 $ 592 $ 14 $ — $ 4 $ — $ 267 $ 13 $ — $ 3 $ — Interest rate swaps 500 — — 15 — — — — — — Net investment hedges: (a) Cross-currency swaps 3,430 — 60 20 82 3,387 — 41 39 81 Foreign exchange 52 — — — — 52 — 1 — — No hedging designation: Foreign exchange 842 — — — 23 860 — 11 — — Interest rate swaps 25 — — — — 25 — — — — Cross-currency swaps 64 — — 1 1 64 — — 1 — Equity (Lionsgate Collar) 97 15 28 — — 97 14 27 — — Total $ 29 $ 88 $ 40 $ 106 $ 27 $ 80 $ 43 $ 81 (a) Excludes £400 million of sterling notes ( $525 million equivalent at March 31, 2019 ) designated as a net investment hedge. (See Note 6.) The following table presents the pretax impact of derivatives designated as cash flow hedges on income and other comprehensive income (loss) (in millions). Three Months Ended March 31, 2019 2018 Gains (losses) recognized in accumulated other comprehensive loss (a) : Foreign exchange - derivative adjustments $ 3 $ (10 ) Interest rate - derivative adjustments (15 ) — Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - advertising revenue $ 1 $ 1 Foreign exchange - distribution revenue 4 — Foreign exchange - costs of revenues (2 ) (4 ) (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. If current fair values of designated cash flow hedges as of March 31, 2019 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. All outstanding cash flow hedges have maturities of less than one year. 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 Accumulated Other Comprehensive Income ("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 three months ended March 31, 2019 or 2018 . Three Months Ended March 31, Amount of gain (loss) recognized in AOCI Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 2019 2018 2019 2018 Cross currency swaps $ 52 $ (49 ) Interest expense, net $ 7 $ — Foreign exchange contracts (a) (1 ) (1 ) Other expense, net — — Sterling notes (foreign denominated debt) (a) (17 ) (25 ) N/A — — Total $ 34 $ (75 ) $ 7 $ — (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 not designated as hedges and recognized in other expense, net in the consolidated statements of operations (in millions). Three Months Ended March 31, 2019 2018 Interest rate swaps $ 1 $ — Cross-currency swaps (2 ) (4 ) Credit contracts — (1 ) Equity 1 10 Foreign exchange derivatives $ (34 ) $ — Total in other expense, net $ (34 ) $ 5 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2019 | |
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, 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 15.) The table below summarizes the Company's redeemable noncontrolling interest balances (in millions). March 31, 2019 December 31, 2018 Discovery Family $ 206 $ 206 MotorTrend Group, LLC ("MTG") 121 121 Oprah Winfrey Network ("OWN") 60 58 Discovery Japan 28 30 PSG 25 — Total $ 440 $ 415 The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions). Three Months Ended March 31, 2019 2018 Beginning balance $ 415 $ 413 Initial fair value of redeemable noncontrolling interests of acquired businesses 25 — Cash distributions to redeemable noncontrolling interests (10 ) (2 ) Comprehensive income adjustments: Net income attributable to redeemable noncontrolling interests 5 6 Currency translation on redemption values — 2 Retained earnings adjustments: Adjustments of redemption values to the floor 3 — OWN interest adjustment 2 — Ending balance $ 440 $ 419 Redeemable noncontrolling interests consist of the arrangements described below: In connection with its noncontrolling interest in Discovery Family, Hasbro Inc. ("Hasbro") has the right to put the entirety of its remaining 40% interest in Discovery Family to Discovery at any time during the one -year period beginning December 31, 2021 , or in the event a Discovery performance obligation related to Discovery Family is not met. Embedded in the redeemable noncontrolling interest is also a Discovery call right that is exercisable during the same one -year period beginning December 31, 2021 . Upon the exercise of the put or call options, the price to be paid for the redeemable noncontrolling interest is generally a function of the then-current fair market value of the redeemable noncontrolling interest, to which certain discounts and floor values may apply in specified situations depending upon the party exercising the put or call and the basis for the exercise of the put or call. As Hasbro's put right is outside the control of the Company, Hasbro's 40% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. In connection with the MTG joint venture between Discovery and GoldenTree, 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 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 its noncontrolling interest in Discovery Japan, Jupiter Telecommunications Co., Ltd ("J:COM") has the right to put all, but not less than all, of its 20% noncontrolling interest to Discovery at any time for cash. As amended, through December 31, 2022 , the redemption value is the January 10, 2013 , fair value denominated in Japanese yen; thereafter, as chosen by J:COM, the redemption value is the then-current fair value or the January 10, 2013 , fair value denominated in Japanese yen. As the shareholders' put right is outside the control of the Company, their 20% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. In connection with its noncontrolling interest in PSG, the noncontrolling shareholders have a put right exercisable that requires Discovery to purchase 50% of their shares on January 8, 2022 and 50% on January 8, 2023, or 100% of their shares on January 8, 2023 if the three-year put option is not exercised. Discovery also has a parallel call right on the same dates. Upon the exercise of the put or call options, the price to be paid for the redeemable noncontrolling interest is the then-current fair market value of the redeemable noncontrolling interest, subject to a floor and cap value. As the shareholders' put right is outside the control of the Company, their 29.3% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. NONCONTROLLING INTEREST In conjunction with the acquisition of Scripps Networks, the Company acquired a controlling interest in the TV Food Network Partnership ("the Partnership"), which includes the Food Network and Cooking Channel, and 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 | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Common Stock Issued in Connection with Scripps Networks Acquisition On March 6, 2018 , the Company issued 139 million shares of Series C common stock as part of the consideration paid for the acquisition of Scripps Networks, inclusive of the conversion of 1 million Scripps Networks share-based compensation awards. (See Note 2.) Repurchase Programs Common Stock There were no common stock repurchases during the three months ended March 31, 2019 and 2018 , as the Company's authorization under its prior stock repurchase program expired on October 8, 2017 . All common stock repurchases, including prepaid common stock repurchase contracts, have been made through open market transactions and have been recorded as treasury stock on the consolidated balance sheet. As of March 31, 2019 , the Company had repurchased 3 million and 164 million shares of Series A and Series C common stock, respectively, for an aggregate purchase price of $171 million and $6.6 billion , respectively. In April 2019, the Company's Board of Directors authorized additional stock repurchases of up to $1 billion . Under the stock authorization, management is authorized to purchase shares from time to time through open market purchases at prevailing prices or privately negotiated purchases subject to market conditions and other factors. Convertible Preferred Stock In 2014, we entered into an agreement with Advance/Newhouse to repurchase, on a quarterly basis, a number of shares of Series C-1 convertible preferred stock convertible into a number of shares of Series C common stock. That agreement terminated in accordance with its terms on October 7, 2017. Other Comprehensive Income (Loss) Adjustments The table below presents the tax effects related to each component of other comprehensive income (loss) and reclassifications made in the consolidated statements of operations (in millions). Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Pretax Tax Net-of-tax Pretax Tax Net-of-tax Currency translation adjustments: Unrealized gains (losses): Foreign currency $ (98 ) $ 2 $ (96 ) $ 71 $ 7 $ 78 Net investment hedges 27 — 27 (75 ) — (75 ) Total currency translation adjustments (71 ) 2 (69 ) (4 ) 7 3 Derivative adjustments: Unrealized gains (losses) (12 ) 4 (8 ) (10 ) 3 (7 ) Reclassifications: Distribution revenue (4 ) — (4 ) — — — Advertising revenue (1 ) — (1 ) (1 ) — (1 ) Costs of revenues 2 — 2 4 (1 ) 3 Total derivative adjustments (15 ) 4 (11 ) (7 ) 2 (5 ) Other comprehensive income (loss) adjustments $ (86 ) $ 6 $ (80 ) $ (11 ) $ 9 $ (2 ) Accumulated Other Comprehensive Loss The table below presents the changes in the components of accumulated other comprehensive loss , net of taxes (in millions). Three Months Ended March 31, 2019 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Other Comprehensive Loss Beginning balance $ (804 ) $ 16 $ 3 $ (785 ) Other comprehensive income before reclassifications (69 ) (8 ) — (77 ) Reclassifications from accumulated other comprehensive loss to net income — (3 ) — (3 ) Other comprehensive income (loss) (69 ) (11 ) — (80 ) Reclassifications to retained earnings resulting from the adoption of ASU 2018-02 (28 ) (2 ) — (30 ) Ending balance $ (901 ) $ 3 $ 3 $ (895 ) Three Months Ended March 31, 2018 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (615 ) $ 26 $ 4 $ (585 ) Other comprehensive income (loss) before reclassifications 3 — (7 ) (4 ) Reclassifications from accumulated other comprehensive loss to net income — — 2 2 Other comprehensive income (loss) 3 — (5 ) (2 ) Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 — (26 ) — (26 ) Ending balance $ (612 ) $ — $ (1 ) $ (613 ) (a) Effective January 1, 2018, unrealized gains and losses on equity investments with readily determinable fair values are recorded in other expense, net. (See Note 3.) |
Noncontrolling Interest
Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2019 | |
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, 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 15.) The table below summarizes the Company's redeemable noncontrolling interest balances (in millions). March 31, 2019 December 31, 2018 Discovery Family $ 206 $ 206 MotorTrend Group, LLC ("MTG") 121 121 Oprah Winfrey Network ("OWN") 60 58 Discovery Japan 28 30 PSG 25 — Total $ 440 $ 415 The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions). Three Months Ended March 31, 2019 2018 Beginning balance $ 415 $ 413 Initial fair value of redeemable noncontrolling interests of acquired businesses 25 — Cash distributions to redeemable noncontrolling interests (10 ) (2 ) Comprehensive income adjustments: Net income attributable to redeemable noncontrolling interests 5 6 Currency translation on redemption values — 2 Retained earnings adjustments: Adjustments of redemption values to the floor 3 — OWN interest adjustment 2 — Ending balance $ 440 $ 419 Redeemable noncontrolling interests consist of the arrangements described below: In connection with its noncontrolling interest in Discovery Family, Hasbro Inc. ("Hasbro") has the right to put the entirety of its remaining 40% interest in Discovery Family to Discovery at any time during the one -year period beginning December 31, 2021 , or in the event a Discovery performance obligation related to Discovery Family is not met. Embedded in the redeemable noncontrolling interest is also a Discovery call right that is exercisable during the same one -year period beginning December 31, 2021 . Upon the exercise of the put or call options, the price to be paid for the redeemable noncontrolling interest is generally a function of the then-current fair market value of the redeemable noncontrolling interest, to which certain discounts and floor values may apply in specified situations depending upon the party exercising the put or call and the basis for the exercise of the put or call. As Hasbro's put right is outside the control of the Company, Hasbro's 40% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. In connection with the MTG joint venture between Discovery and GoldenTree, 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 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 its noncontrolling interest in Discovery Japan, Jupiter Telecommunications Co., Ltd ("J:COM") has the right to put all, but not less than all, of its 20% noncontrolling interest to Discovery at any time for cash. As amended, through December 31, 2022 , the redemption value is the January 10, 2013 , fair value denominated in Japanese yen; thereafter, as chosen by J:COM, the redemption value is the then-current fair value or the January 10, 2013 , fair value denominated in Japanese yen. As the shareholders' put right is outside the control of the Company, their 20% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. In connection with its noncontrolling interest in PSG, the noncontrolling shareholders have a put right exercisable that requires Discovery to purchase 50% of their shares on January 8, 2022 and 50% on January 8, 2023, or 100% of their shares on January 8, 2023 if the three-year put option is not exercised. Discovery also has a parallel call right on the same dates. Upon the exercise of the put or call options, the price to be paid for the redeemable noncontrolling interest is the then-current fair market value of the redeemable noncontrolling interest, subject to a floor and cap value. As the shareholders' put right is outside the control of the Company, their 29.3% noncontrolling interest is presented as redeemable noncontrolling interest outside of permanent equity on the Company's consolidated balance sheet. NONCONTROLLING INTEREST In conjunction with the acquisition of Scripps Networks, the Company acquired a controlling interest in the TV Food Network Partnership ("the Partnership"), which includes the Food Network and Cooking Channel, and 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 | 3 Months Ended |
Mar. 31, 2019 | |
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. Three Months Ended March 31, 2019 2018 U.S. Networks International Networks Other Total U.S. Networks International Networks Other Total Revenues: Advertising $ 1,022 $ 393 $ — $ 1,415 $ 627 $ 385 $ — $ 1,012 Distribution 697 527 — 1,224 514 537 — 1,051 Other 33 32 3 68 33 176 35 244 Totals $ 1,752 $ 952 $ 3 $ 2,707 $ 1,174 $ 1,098 $ 35 $ 2,307 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 monthly 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 $1.3 billion as of March 31, 2019 and is expected to be recognized over the next five 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 $577 million as of March 31, 2019 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 $78 million as of March 31, 2019 and is expected to be recognized over the next thirteen years. 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. Contract Balances A receivable is recorded when there is an unconditional right to consideration based on a contract with a customer. A contract liability, deferred revenue, is recorded when cash is received in advance of the Company's performance. The following table presents (in millions) the Company’s opening and closing balances of receivables and deferred revenues, as well as activity since the beginning of the period. December 31, 2018 Additions Reductions Foreign Currency March 31, 2019 Accounts receivable $ 2,620 2,711 (2,693 ) (13 ) $ 2,625 Deferred revenues: Current 249 293 (306 ) — 236 Long term (a) 120 4 — (1 ) 123 December 31, 2017 Additions (b) Reductions Foreign Currency March 31, 2018 Accounts receivable $ 1,838 2,981 (2,163 ) (2 ) $ 2,654 Deferred revenues: Current 255 354 (304 ) (6 ) 299 Long term (a) 109 3 — — 112 (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 $116 million , respectively, as of March 6, 2018 , the date of the acquisition. (See Note 2.) Revenue recognized for the three months ended March 31, 2019 related to the contract liability (deferred revenues) as of December 31, 2018 was $99 million . Capitalized Contract Costs 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. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
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, service-based restricted stock units ("RSUs"), performance-based restricted stock units ("PRSUs") and stock appreciation rights ("SARs") have been issued. During the three months ended March 31, 2019 , the vesting and service requirements of share-based awards granted were consistent with the arrangements disclosed in the 2018 Form 10-K. The table below presents the components of share-based compensation expense (in millions). Three Months Ended March 31, 2019 2018 PRSUs $ 10 $ 2 RSUs 6 7 Stock options 9 5 SARs 5 1 Total share-based compensation expense $ 30 $ 15 Tax benefit recognized $ 3 $ 3 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 records expense for the fair value of cash-settled and other liability-classified share-based compensation awards ratably over the graded vesting service period based on changes in fair value and the probability that performance targets will be met, if applicable. The table below presents current and non-current portions of liability-classified share-based compensation awards (in millions). March 31, 2019 December 31, 2018 Current portion of liability-classified awards: PRSUs $ 15 $ 21 SARs 7 2 Non-current portion of liability-classified awards: PRSUs 14 22 SARs 7 9 Total liability-classified share-based compensation award liability $ 43 $ 54 The table below presents award activity (in millions, except weighted-average grant price) for PRSUs, RSUs and SARs. Three Months Ended March 31, 2019 Awards Weighted-Average Grant Price Awards granted: PRSUs 0.5 $ 28.48 RSUs 2.9 $ 29.01 SARs — $ — Awards converted or settled: PRSUs 1.1 $ 33.31 RSUs 0.7 $ 28.56 SARs 0.9 $ 22.34 The table below presents stock option activity (in millions, except weighted-average exercise price). Stock Options Weighted-Average Outstanding as of December 31, 2018 21.1 $ 28.86 Granted 2.1 $ 31.01 Exercised (0.4 ) $ 23.47 Forfeited/cancelled (0.2 ) $ 30.26 Outstanding as of March 31, 2019 22.6 The table below presents unrecognized compensation cost related to non-vested share-based awards and the weighted-average amortization period over which these expenses will be recognized as of March 31, 2019 (in millions, except years). Unrecognized Compensation Cost Weighted-Average Amortization Period (years) RSUs $ 149 3.28 PRSUs 24 1.35 Stock options 115 3.75 SARs 13 1.45 Total unrecognized compensation cost $ 301 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following table reconciles the U.S. federal statutory income tax rate to the Company's effective income tax rate. Three Months Ended March 31, 2019 2018 U.S. federal statutory income tax provision $ (120 ) 21 % $ 4 21 % State and local income taxes, net of federal tax benefit (20 ) 4 % 7 44 % Effect of foreign operations (11 ) 2 % (4 ) (21 )% Change in uncertain tax positions (6 ) 1 % — (2 )% Renewable energy investments tax credits (See Note 3) — — % — (1 )% Noncontrolling interest adjustment 12 (2 )% — (1 )% U.S. legislative changes — — % 19 109 % Other, net (8 ) 1 % (6 ) (31 )% Income tax (expense) benefit $ (153 ) 27 % $ 20 118 % The Company and its subsidiaries file income tax returns in the U.S. and various state and foreign jurisdictions. The Internal Revenue Service recently completed audit procedures for its 2008 to 2011 tax years, the results of which should be finalized in the coming year. The Company is currently under audit by the Internal Revenue Service for its 2012 to 2014 consolidated federal income tax returns. It is difficult to predict the final outcome or timing of resolution of any particular tax matter. Accordingly, the impact of these audits on any of the reserves for uncertain tax positions cannot currently be determined. With few exceptions, the Company is no longer subject to audit by any jurisdiction for years prior to 2006 . The Company's reserves for uncertain tax positions as of March 31, 2019 and December 31, 2018 totaled $438 million and $378 million , respectively. 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 $99 million within the next twelve months as a result of ongoing audits, lapses of statutes of limitations or regulatory developments. As of March 31, 2019 and December 31, 2018 , the Company had accrued approximately $66 million and $51 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. We expect to recognize a non-cash deferred income tax benefit of approximately $450 to $500 million , primarily during the three months ended June 30, 2019. (See Note 21.) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE In calculating earnings per share, the Company follows the two -class method, which distinguishes between classes of securities based on the proportionate participation rights of each security type in the Company's undistributed income. The Company's Series A, B and C common stock and the Series C-1 convertible preferred stock are treated as one class for purposes of applying the two-class method, because they have substantially equal rights and share equally on an as-converted basis with respect to income available to Discovery, Inc. The Company's Series A-1 convertible preferred stock is treated as a separate class for purposes of applying the two-class method. Series A-1 convertible preferred stock is currently convertible into nine shares of our Series A common stock and Series C-1 convertible preferred stock is convertible into 19.3648 shares of our Series C common stock, subject to certain anti-dilution adjustments. 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 per share. 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. 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 (loss) per share amounts of Series C-1 convertible preferred stock does not assume conversion of those shares. The table below sets forth the Company's calculated earnings (loss) per share. Earnings (loss) per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2019 2018 Numerator: Net income $ 418 $ 3 Less: Allocation of undistributed (income) loss to Series A-1 convertible preferred stock (38 ) 1 Net income attributable to noncontrolling interests (29 ) (5 ) Net income attributable to redeemable noncontrolling interests (5 ) (6 ) Redeemable noncontrolling interest adjustments to redemption value (5 ) — Net income (loss) allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 341 $ (7 ) Allocation of net income (loss) 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 279 (6 ) Series C-1 convertible preferred stockholders 62 (1 ) Total 341 (7 ) Add: Allocation of undistributed income (loss) to Series A-1 convertible preferred stockholders 38 (1 ) Net income (loss) allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 379 $ (8 ) Denominator — weighted average: Series A, B and C common shares outstanding — basic 524 422 Impact of assumed preferred stock conversion 187 187 Dilutive effect of share-based awards 3 — Series A, B and C common shares outstanding — diluted 714 609 Series C-1 convertible preferred stock outstanding — basic and diluted 6 6 Basic net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.53 $ (0.01 ) Series C-1 convertible preferred stockholders $ 10.31 $ (0.25 ) Diluted net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.53 $ (0.01 ) Series C-1 convertible preferred stockholders $ 10.27 $ (0.25 ) For three months ended March 31, 2018 , 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 presents the details of share-based awards that were excluded from the calculation of diluted earnings (loss) per share (in millions). Three Months Ended March 31, 2019 2018 Anti-dilutive share-based awards 21 16 PRSUs whose performance targets have not been achieved 1 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. |
Supplemental Disclosures
Supplemental Disclosures | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Disclosures | SUPPLEMENTAL DISCLOSURES The following tables present supplemental information related to the consolidated financial statements (in millions). Other Expense, net Three Months Ended March 31, 2019 2018 Foreign currency losses, net $ (9 ) $ (4 ) (Loss) gain on derivative instruments, net (34 ) 5 Change in the value of common stock investments with readily determinable fair value — (38 ) Interest income (a) — 15 Other income, net 8 — Remeasurement gain on previously held equity interest 8 $ — Total other expense, net $ (27 ) $ (22 ) (a) Interest income for the three months ended March 31, 2018 is comprised primarily of interest on proceeds from the issuance of senior notes used to fund the acquisition of Scripps Networks. As of March 31, 2018 , the Company had utilized the proceeds in the acquisition of Scripps Networks. Supplemental Cash Flow Information Three Months Ended March 31, 2019 2018 Cash paid for taxes, net $ 34 $ 44 Cash paid for interest, net 197 199 Non-cash investing and financing activities: Equity issued for the acquisition of Scripps Networks — 3,218 Accrued purchases of property and equipment 26 13 Assets acquired under finance lease arrangements 2 24 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
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 48% 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 (in millions). Three Months Ended March 31, 2019 2018 Revenues and service charges: Liberty Group $ 168 $ 145 Equity method investees 74 38 Other 14 10 Total revenues and service charges $ 256 $ 193 Interest income $ 1 $ — Expenses $ (196 ) $ (55 ) The table below presents receivables due from related parties (in millions). March 31, 2019 December 31, 2018 Receivables 155 167 Note receivable (a) $ 98 $ 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 2.) |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Guarantees | COMMITMENTS, CONTINGENCIES, AND GUARANTEES Commitments In the normal course of business, the Company enters into various commitments, which primarily include programming and talent arrangements, operating and finance leases, employment contracts, arrangements to purchase various goods and services, future funding commitments to equity method investees, and the conditional obligation to issue or acquire additional shares of preferred stock. (See Note 10.) Contingencies Put Rights The Company has granted put rights to certain consolidated subsidiaries. Hasbro, GoldenTree, Harpo, J:COM, and PSG have the right to require the Company to purchase their remaining noncontrolling interests in Discovery Family, MTG, OWN, Discovery Japan, and PSG, respectively. The Company recorded the carrying value of the noncontrolling interest in the equity associated with the put rights for Discovery Family, MTG, OWN, Discovery Japan, and PSG as a component of redeemable noncontrolling interest in the amounts of $206 million , $121 million , $60 million , $28 million , and $25 million , respectively. (See Note 9.) Legal Matters The Company is party to various lawsuits and claims in the ordinary course of business, including claims related to employees, vendors, other business partners or patent issues. However, a determination as to the amount of the accrual required for such contingencies is highly subjective and requires judgment about future events. Although the outcome of these matters cannot be predicted with certainty and the impact of the final resolution of these matters on the Company's results of operations in a particular subsequent reporting period is not known, management does not believe that the resolution of these matters will have a material adverse effect on the Company's future consolidated financial position, future results of operations or cash flows. During the quarter ended June 30, 2018, the Company received written notification from tax authorities of a withholding tax claim stemming from an audit that commenced in 2017. A liability of $40 million was recorded as part of the provisional Scripps Networks purchase accounting as of December 31, 2018. During the three months ended March 31, 2019, the withholding tax claim was settled with a portion of the claim being resolved subsequent to the measurement period, which resulted in a reversal of the remaining accrual and a reduction in selling, general, and administrative expense of approximately $29 million . Guarantees There were no guarantees recorded as of March 31, 2019 and December 31, 2018 . 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 March 31, 2019 and December 31, 2018 . |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2019 | |
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) 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, (vii) third-party transaction costs directly related to the acquisition and integration of Scripps Networks, and (viii) other items impacting comparability, such as the non-cash settlement of a withholding tax claim. (See Note 18.) 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 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. Effective January 1, 2019, the Company's definition of Adjusted OIBDA was modified to exclude all share-based compensation, whereas only mark-to-market share-based compensation was previously excluded. Over time, the Company has moved to a higher percentage of equity classified awards (in lieu of liability classified awards, which require mark-to-market accounting) under its stock incentive plans and expects to continue this practice in future periods. Since most equity classified awards are non-cash expenses not entirely under management control, we have elected to exclude all share-based compensation from Adjusted OIBDA beginning in 2019. The revised definition of Adjusted OIBDA will be used by the Company's CODM in evaluating segment performance in 2019. Accordingly, prior period amounts have been recast to reflect the current definition. The tables below present summarized financial information for each of the Company’s reportable segments, other, and corporate and inter-segment eliminations (in millions). Revenues Three Months Ended March 31, 2019 2018 U.S. Networks $ 1,752 $ 1,174 International Networks 952 1,098 Other 3 35 Corporate and inter-segment eliminations — — Total revenues $ 2,707 $ 2,307 Adjusted OIBDA Three Months Ended March 31, 2019 2018 U.S. Networks $ 1,061 $ 652 International Networks 219 137 Other 1 3 Corporate and inter-segment eliminations (122 ) (83 ) Total Adjusted OIBDA $ 1,159 $ 709 Reconciliation of Net Income available to Discovery, Inc. to Total Adjusted OIBDA Three Months Ended March 31, 2019 2018 Net income (loss) available to Discovery, Inc. 384 (8 ) Net income attributable to noncontrolling interests 29 5 Net income attributable to redeemable noncontrolling interests 5 6 Income tax expense (benefit) 153 (20 ) Income (loss) before income taxes 571 (17 ) Other expense, net 27 22 (Income) loss from equity investees, net (11 ) 22 Loss on extinguishment of debt 5 — Interest expense 182 177 Operating income 774 204 Restructuring and other charges 5 241 Depreciation and amortization 372 193 Share-based compensation 30 15 Scripps Networks transaction and integration costs 7 56 Settlement of a withholding tax claim (29 ) — Total Adjusted OIBDA $ 1,159 $ 709 Total Assets March 31, 2019 December 31, 2018 U.S. Networks $ 18,539 $ 18,683 International Networks 7,229 7,208 Other 223 227 Corporate and inter-segment eliminations 6,453 6,432 Total assets $ 32,444 $ 32,550 Total assets for corporate and inter-segment eliminations include goodwill that is allocated to the Company’s segments. The presentation of segment assets in the table above is consistent with the financial reports that are reviewed by the Company’s CEO. |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | RESTRUCTURING AND OTHER CHARGES Restructuring and other charges by reportable segments and corporate and inter-segment eliminations were as follows (in millions). Three Months Ended March 31, 2019 2018 U.S. Networks $ 4 $ 34 International Networks 4 100 Corporate and inter-segment eliminations (3 ) 107 Total restructuring and other charges $ 5 $ 241 Three Months Ended March 31, 2019 2018 Restructuring charges $ 5 $ 164 Other charges — 77 Total restructuring and other charges $ 5 $ 241 Restructuring charges include contract terminations, employee terminations and facility closures. For the three months ended March 31, 2019 and 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 which resulted from a global strategic review of content following the acquisition of Scripps Networks. Changes in restructuring and other liabilities recorded in accrued liabilities and other noncurrent liabilities by major category were as follows (in millions). U.S. Networks International Networks Corporate and inter-segment eliminations (a) Total December 31, 2018 $ 16 $ 46 $ 46 $ 108 Net contract termination accruals — — (6 ) (6 ) Net employee relocation/termination accruals 4 4 (3 ) 5 Cash paid (11 ) (6 ) (8 ) (25 ) March 31, 2019 $ 9 $ 44 $ 29 $ 82 (a) $1 million and $5 million of net contract termination accruals related to lease exits were reclassed from accrued liabilities and other noncurrent liabilities, respectively, to right-of-use assets on the balance sheet upon adoption of ASU 842 on January 1, 2019. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Investments On April 10, 2019 , the Company announced an agreement to launch a media joint venture with Magnolia, the home and lifestyle brand led by Chip and Joanna Gaines. The multi-platform media company will be comprised of a rebranded linear television network (currently operating as DIY), a TV Everywhere app that will be released in 2020 , and a subscription streaming service planned for a later date. Discovery expects to hold a 75% ownership interest in the joint venture. The transaction is expected to close in the second quarter of 2019 . |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Overview As of March 31, 2019 and December 31, 2018 , most of the Company's outstanding senior notes have been issued by DCL, a wholly owned subsidiary of the Company, pursuant to one or more Registration Statements on Form S-3 filed with the U.S. Securities and Exchange Commission ("SEC"). (See Note 6.) Each of the Company, DCL and/or Discovery Communications Holding LLC (“DCH”) (collectively the “Issuers”) have the ability to conduct registered offerings of debt securities. Set forth below are condensed consolidating financial statements presenting the financial position, results of operations and comprehensive income and cash flows of (i) the Company, (ii) Scripps Networks, (iii) DCH, (iv) DCL, (v) the non-guarantor subsidiaries of DCL, (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 6). The exchanged Scripps Networks senior notes are fully and unconditionally guaranteed by Scripps Networks and the Company. During the three months ended June 30, 2018, the Company completed a series of senior note guaranty transactions and as a result as of June 30, 2018, the Company and Scripps Networks fully and unconditionally guarantee all of Discovery's senior notes on an unsecured basis, except for the $243 million un-exchanged Scripps Networks Senior Notes. (See Note 6.) The condensed consolidated financial statements presented below have been recast to reflect the addition of Scripps Networks as a guarantor as of and for the three months ended March 31, 2018 and to reflect conforming classification changes made in conjunction with the adoption of ASU 2016-02. (See Note 1.) 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. Intercompany 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 below should be read in conjunction with the consolidated financial statements of the Company. Condensed Consolidating Balance Sheet March 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 237 $ — $ 134 $ 291 $ 83 $ — $ 745 Receivables, net — — — 434 1,321 870 — 2,625 Content rights, net — — — 28 273 63 — 364 Prepaid expenses and other current assets 1 14 12 50 149 65 — 291 Inter-company trade receivables, net — — — 272 — — (272 ) — Total current assets 1 251 12 918 2,034 1,081 (272 ) 4,025 Investment in and advances to subsidiaries 8,818 13,041 — 6,325 — — (28,184 ) — Noncurrent content rights, net — — — 580 1,564 954 — 3,098 Goodwill, net — — — 3,678 3,309 6,050 — 13,037 Intangible assets, net — — — 242 1,230 7,894 — 9,366 Equity method investments, including note receivable — 98 — 20 295 542 — 955 Other noncurrent assets, including property and equipment, net — 39 18 610 822 493 (19 ) 1,963 Total assets $ 8,819 $ 13,429 $ 30 $ 12,373 $ 9,254 $ 17,014 $ (28,475 ) $ 32,444 LIABILITIES AND EQUITY Current liabilities: Other current liabilities $ 109 $ 27 $ — $ 349 $ 1,141 $ 462 $ — $ 2,088 Inter-company trade payables, net — — — — 272 — (272 ) — Current portion of debt — 106 — 1,268 13 — — 1,387 Total current liabilities 109 133 — 1,617 1,426 462 (272 ) 3,475 Noncurrent portion of debt — 135 — 14,590 231 — — 14,956 Negative carrying amount in subsidiaries, net — — 4,459 — — 2,953 (7,412 ) — Other noncurrent liabilities 2 59 — 625 832 1,775 (20 ) 3,273 Total liabilities 111 327 4,459 16,832 2,489 5,190 (7,704 ) 21,704 Redeemable noncontrolling interests — — — — 440 — — 440 Total Discovery, Inc. stockholders' equity 8,708 13,102 (4,429 ) (4,459 ) 6,325 11,824 (22,363 ) 8,708 Noncontrolling interests — — — — — — 1,592 1,592 Total equity 8,708 13,102 (4,429 ) (4,459 ) 6,325 11,824 (20,771 ) 10,300 Total liabilities and equity $ 8,819 $ 13,429 $ 30 $ 12,373 $ 9,254 $ 17,014 $ (28,475 ) $ 32,444 Condensed Consolidating Balance Sheet December 31, 2018 (in millions) Discovery Scripps Networks 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, net — — — 3,678 3,298 6,030 — 13,006 Intangible assets, net — — — 246 1,261 8,167 — 9,674 Equity method investments, including note receivable — 94 — 23 291 527 — 935 Other noncurrent assets, including property and equipment, net — 35 20 537 607 456 (20 ) 1,635 Total assets $ 8,388 $ 13,710 $ 42 $ 12,048 $ 9,122 $ 17,316 $ (28,076 ) $ 32,550 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 106 $ — $ 1,701 $ 12 $ — $ — $ 1,819 Other current liabilities — 30 — 402 1,266 480 — 2,178 Inter-company trade payables, net — — — — 151 — (151 ) — Total current liabilities — 136 — 2,103 1,429 480 (151 ) 3,997 Noncurrent portion of debt — 134 — 14,606 234 — — 14,974 Negative carrying amount in subsidiaries, net — — 5,183 — — 3,427 (8,610 ) — Other noncurrent liabilities 2 56 — 522 754 1,748 (20 ) 3,062 Total liabilities 2 326 5,183 17,231 2,417 5,655 (8,781 ) 22,033 Redeemable noncontrolling interests — — — — 415 — — 415 Total Discovery, Inc. stockholders’ equity 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 Statement of Operations Three Months Ended March 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 507 $ 1,296 $ 911 $ (7 ) $ 2,707 Costs of revenues, excluding depreciation and amortization — — — 101 588 245 (4 ) 930 Selling, general and administrative 5 — — 69 425 129 (2 ) 626 Depreciation and amortization — — — 12 80 280 — 372 Restructuring and other charges — — — — 5 — — 5 Total costs and expenses 5 — — 182 1,098 654 (6 ) 1,933 Operating (loss) income (5 ) — — 325 198 257 (1 ) 774 Equity in earnings (loss) of subsidiaries 387 230 220 121 — 146 (1,104 ) — Interest expense, net — — — (175 ) (1 ) (6 ) — (182 ) Loss on extinguishment of debt — — — (5 ) — — — (5 ) Income (loss) from equity investees, net — — — 1 (2 ) 12 — 11 Other income (expense), net — 4 — (6 ) (20 ) (5 ) — (27 ) Income before income taxes 382 234 220 261 175 404 (1,105 ) 571 Income tax benefit (expense) 2 (1 ) — (41 ) (49 ) (64 ) — (153 ) Net income 384 233 220 220 126 340 (1,105 ) 418 Net income attributable to noncontrolling interests — — — — — — (29 ) (29 ) Net income attributable to redeemable noncontrolling interests — — — — — — (5 ) (5 ) Net income available to Discovery, Inc. $ 384 $ 233 $ 220 $ 220 $ 126 $ 340 $ (1,139 ) $ 384 Condensed Consolidating Statement of Operations Three Months Ended March 31, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 488 $ 1,549 $ 273 $ (3 ) $ 2,307 Costs of revenues, excluding depreciation and amortization — — — 107 866 92 (5 ) 1,060 Selling, general and administrative 26 (1 ) — 80 436 66 2 609 Depreciation and amortization — — — 17 93 83 — 193 Restructuring and other charges 8 — — 43 98 92 — 241 Total costs and expenses 34 (1 ) — 247 1,493 333 (3 ) 2,103 Operating (loss) income (34 ) 1 — 241 56 (60 ) — 204 Equity in earnings (loss) of subsidiaries 17 (44 ) 71 9 — 91 (144 ) — Interest expense — (6 ) — (157 ) (12 ) (2 ) — (177 ) (Loss) income from equity investees, net — — — — (31 ) 9 — (22 ) Other income (expense), net — 1 — (24 ) 4 (3 ) — (22 ) (Loss) income before income taxes (17 ) (48 ) 71 69 17 35 (144 ) (17 ) Income tax benefit (expense) 8 — — 2 (2 ) 12 — 20 Net (loss) income (9 ) (48 ) 71 71 15 47 (144 ) 3 Net income attributable to noncontrolling interests — — — — — — (5 ) (5 ) Net income attributable to redeemable noncontrolling interests — — — — — — (6 ) (6 ) Net (loss) income available to Discovery, Inc. $ (9 ) $ (48 ) $ 71 $ 71 $ 15 $ 47 $ (155 ) $ (8 ) Condensed Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 384 $ 233 $ 220 $ 220 $ 126 $ 340 $ (1,105 ) $ 418 Other comprehensive (loss) income adjustments, net of tax: Currency translation (69 ) (17 ) (52 ) (52 ) (35 ) (52 ) 208 (69 ) Derivatives (11 ) — (11 ) (11 ) (11 ) (7 ) 40 (11 ) Comprehensive income 304 216 157 157 80 281 (857 ) 338 Comprehensive income attributable to noncontrolling interests — — — — — — (29 ) (29 ) Comprehensive income attributable to redeemable noncontrolling interests — — — — — — (5 ) (5 ) Comprehensive income attributable to Discovery, Inc. $ 304 $ 216 $ 157 $ 157 $ 80 $ 281 $ (891 ) $ 304 Condensed Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ (9 ) $ (48 ) $ 71 $ 71 $ 15 $ 47 $ (144 ) $ 3 Other comprehensive income (loss) adjustments, net of tax: Currency translation 3 20 23 23 23 (25 ) (64 ) 3 Derivatives (5 ) — (5 ) (5 ) (5 ) (3 ) 18 (5 ) Comprehensive (loss) income (11 ) (28 ) 89 89 33 19 (190 ) 1 Comprehensive income attributable to noncontrolling interests — — — — — — (5 ) (5 ) Comprehensive income attributable to redeemable noncontrolling interests (2 ) — (2 ) (2 ) (2 ) (1 ) 3 (6 ) Comprehensive (loss) income attributable to Discovery, Inc. $ (13 ) $ (28 ) $ 87 $ 87 $ 31 $ 18 $ (192 ) $ (10 ) Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash provided by (used in) operating activities $ 15 $ — $ 10 $ (8 ) $ (22 ) $ 547 $ — $ 542 Investing Activities Business acquisitions, net of cash acquired — — — — (22 ) — — (22 ) Investments in and advances to equity method investees — — — — (34 ) — — (34 ) Payments for property and equipment — — — (3 ) (33 ) (8 ) — (44 ) Proceeds from derivative instruments — — — — 5 — — 5 Inter-company distributions, and other investing activities, net — — — 20 — 1 (20 ) 1 Cash provided by (used in) investing activities — — — 17 (84 ) (7 ) (20 ) (94 ) Financing Activities Principal repayments of debt, including discount payment and premiums to par value — — — (453 ) — — — (453 ) Principal repayments of finance lease obligations — — — (2 ) (14 ) (1 ) — (17 ) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — — (10 ) (153 ) — (163 ) Share-based plan (payments) proceeds, net (15 ) — — — — — — (15 ) Repayments under program financing line of credit, net — — — — (3 ) — — (3 ) Inter-company contributions (distributions) and other financing activities, net — (78 ) (10 ) 519 (13 ) (439 ) 20 (1 ) Cash used in (provided by) financing activities (15 ) (78 ) (10 ) 64 (40 ) (593 ) 20 (652 ) Effect of exchange rate changes on cash and cash equivalents — — — — (38 ) 1 — (37 ) Net change in cash and cash equivalents — (78 ) — 73 (184 ) (52 ) — (241 ) Cash and cash equivalents, beginning of period — 315 — 61 475 135 — 986 Cash and cash equivalents, end of period $ — $ 237 $ — $ 134 $ 291 $ 83 $ — $ 745 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (54 ) $ (1 ) $ (8 ) $ 17 $ 210 $ (4 ) $ — $ 160 Investing Activities Business acquisitions, net of cash acquired (8,714 ) 54 — — — 95 — (8,565 ) (Payments for) proceeds from investments — — — — (28 ) 6 — (22 ) Purchases of property and equipment — — — (25 ) (23 ) — — (48 ) Payments for derivative instruments, net — — — — (42 ) — — (42 ) Other investing activities, net — 6 — — 2 (6 ) — 2 Cash (used in) provided by investing activities (8,714 ) 60 — (25 ) (91 ) 95 — (8,675 ) Financing Activities Borrowings under term loan agreements — — — 2,000 — — — 2,000 Principal repayments of capital lease obligations — — — (2 ) (11 ) — — (13 ) Distributions to redeemable noncontrolling interests — — — — (2 ) — — (2 ) Share-based plan proceeds, net 23 — — — — — — 23 Borrowing under program financing line of credit — — — — 22 — — 22 Other financing activities, net 8,745 — 8 (8,445 ) (319 ) — — (11 ) Cash provided by (used in) financing activities 8,768 — 8 (6,447 ) (310 ) — — 2,019 Effect of exchange rate changes on cash and cash equivalents — — — — (1 ) — — (1 ) Net change in cash and cash equivalents — 59 — (6,455 ) (192 ) 91 — (6,497 ) Cash and cash equivalents, beginning of period — — — 6,800 509 — — 7,309 Cash and cash equivalents, end of period $ — $ 59 $ — $ 345 $ 317 $ 91 $ — $ 812 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Discovery and its majority-owned subsidiaries in which a controlling interest is maintained. For each non-wholly owned subsidiary, the Company evaluates its ownership and other interests to determine whether it should consolidate the entity or account for its ownership interest as an equity method investment or an equity investment without a readily determinable fair value. As part of its evaluation, the Company makes judgments in determining whether the entity is a variable interest entity ("VIE") and, if so, whether it is the primary beneficiary of the VIE and is thus required to consolidate the entity. (See Note 3.) Inter-company accounts and transactions between consolidated entities have been eliminated in consolidation. |
Basis of Presentation | Unaudited Interim Financial Statements These consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments consisting only of normal recurring adjustments necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles (“GAAP”) applicable to interim periods. The results of operations for the interim periods presented are not necessarily indicative of results for the full year or future periods. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Discovery’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “ 2018 Form 10-K”). |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that affect the amounts and disclosures reported in the consolidated financial statements and accompanying notes. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change as actual results may differ materially from those estimates. These estimates are sometimes complex, sensitive to changes in assumptions and may require fair value determinations using Level 3 fair value measurements. Estimates and judgments inherent in the preparation of the consolidated financial statements include accounting for asset impairments, revenue recognition, allowances for doubtful accounts, content rights, depreciation and amortization, business combinations, share-based compensation, defined benefit plans, income taxes, other financial instruments, contingencies and the determination of whether the Company is the primary beneficiary of entities in which it holds variable interests. |
Accounting and Reporting Pronouncements Adopted and Not Yet Adopted | Accounting and Reporting Pronouncements Adopted Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, which requires lessees to recognize almost all of their leases on the balance sheet by recording a right-of-use asset and lease 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 Company adopted ASU 2016-02 effective January 1, 2019 and elected to apply the guidance at the effective date without recasting the comparative periods presented. Additionally, the Company elected to apply practical expedients allowing 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 also elected to not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component are accounted for as a single lease component. The Company did 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 did not elect to apply the short-term lease scope exemption. The adoption of ASU 2016-02 resulted in recognition of operating lease right-of-use assets of $342 million (included in “Other noncurrent assets”) and operating lease liabilities of $372 million (included in “Accrued liabilities” and “Other noncurrent liabilities”). The operating lease right-of use assets recorded upon adoption were offset by prepaid and deferred rent balances and ASC 420 liabilities totaling approximately $30 million . In addition, capital lease obligations totaling $252 million as of December 31, 2018 (known as finance lease liabilities effective January 1, 2019) were reclassified from current and noncurrent debt to components of "Accrued liabilities" and "Other noncurrent liabilities" on the consolidated balance sheet to conform with the new presentation. The adoption did not affect the pattern of expense recognition, cash flow presentation, or the Company's ability to meet its financial covenants. See Note 7 for further information. 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 Company adopted ASU 2018-02 effective January 1, 2019, which resulted in a reclassification of $30 million between accumulated other comprehensive loss and retained earnings on the consolidated balance sheet and the consolidated statement of equity. Tax effects unrelated to the TCJA are released from accumulated other comprehensive loss using either the specific identification approach or the portfolio approach based on the nature of the underlying item. 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 8. Accounting and Reporting Pronouncements Not Yet Adopted Targeted Improvements to Accounting for Financial Instruments, Credit Losses, and Hedging Activities In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The new ASU provides narrow-scope amendments to help apply these recent standards. The Company will be required to adopt the provisions of this ASU on January 1, 2020, with early adoption permitted for certain amendments. The Company is currently assessing the impact that this pronouncement will have on its consolidated financial statements. Content In March 2019, the FASB issued ASU 2019-02, which aligns the accounting for production costs of episodic television series with the accounting for production costs of films. In addition, ASU 2019-02 modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements in Accounting Standards Codification (“ASC”) 926-20 and the impairment, presentation and disclosure requirements in ASC 920-350. This ASU must be adopted on a prospective basis and is effective for annual periods beginning after December 15, 2019, including interim periods within those years, with early adoption permitted. The Company is currently evaluating the impact that this pronouncement will have on its consolidated financial statements. Goodwill In January 2017, the FASB issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the former two-step goodwill impairment test and eliminating 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 not to exceed the amount of goodwill recorded for that reporting unit. Goodwill impairment will no longer be measured as the excess of the carrying amount of goodwill over its implied fair value determined by assigning the fair value of a reporting unit to all of its assets and liabilities as if it had been acquired in a business combination. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 . This ASU 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 this pronouncement will have on its 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 requires entities to use a new, forward-looking “expected loss” model that would generally result in the earlier recognition of allowances for losses. This ASU is effective for annual periods beginning after December 15, 2019, including interim periods within those years, with early adoption permitted. Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. The Company is currently evaluating the impact of this standard on its consolidated financial statements, including accounting policies, processes, and systems. |
Concentrations Risk | Concentrations Risk Customers The Company has long-term contracts with distributors around the world. For the U.S. Networks segment, approximately 97% of distribution revenue comes from the Company's largest 10 distributors in the U.S. For the International Networks segment, approximately 39% of distribution revenue comes from the Company's largest 10 distributors outside of the U.S. Agreements in place with the 10 largest cable and satellite operators in the U.S. Networks and International Networks expire at various times from 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 the three months ended March 31, 2019 or 2018 . As of March 31, 2019 and December 31, 2018 , the Company’s trade receivables did not represent a significant concentration of credit risk as the customers and markets in which the Company operates are varied and dispersed across many geographic areas. |
Fair Value Measurements | Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified in the following three categories: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Valuations derived from techniques in which one or more significant inputs are unobservable. |
Derivatives | The Company uses derivative financial instruments to modify its exposure to market risks from changes in foreign currency exchange rates and interest rates. At the inception of a derivative contract, the Company designates the derivative as one of four types based on the Company's intentions and belief as to its likely effectiveness as a hedge. These four types are: (1) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), (2) a hedge of net investments in foreign operations ("net investment hedge"), (3) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), or (4) an instrument with no hedging designation. The Company does not enter into or hold derivative financial instruments for speculative trading purposes. Unsettled derivative contracts are recorded at their gross fair values on the consolidated balance sheets. (See Note 4.) The portion of the fair value that represents cash flows occurring within one year is classified as current, and the portion related to cash flows occurring beyond one year is classified as noncurrent. Gains and losses on designated cash flow and net investment hedges are initially recognized as components of accumulated other comprehensive loss on the consolidated balance sheets and reclassified into the statements of operations in the same line item in which the hedged item is recorded and in the same period as the hedged item affects earnings. The 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 Company records gains and losses for instruments that receive no hedging designation, as a component of other expense, net on the consolidated statements of operations. |
Redeemable Noncontrolling Interest | Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the noncontrolling interest balances adjusted for comprehensive income items and distributions or the redemption values remeasured at the period end foreign exchange rates (i.e., the "floor"). Adjustments to the carrying amount of redeemable noncontrolling interests to redemption value as a result of changes in exchange rates are reflected in currency translation, 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 15.) |
Earnings Per Share | In calculating earnings per share, the Company follows the two -class method, which distinguishes between classes of securities based on the proportionate participation rights of each security type in the Company's undistributed income. The Company's Series A, B and C common stock and the Series C-1 convertible preferred stock are treated as one class for purposes of applying the two-class method, because they have substantially equal rights and share equally on an as-converted basis with respect to income available to Discovery, Inc. |
Segment Reporting | The accounting policies of the reportable segments are the same as the Company’s, except that certain inter-segment transactions that are eliminated for consolidation are not eliminated at the segment level. Inter-segment transactions primarily include advertising and content purchases. |
Adjusted OIBDA | The Company believes Adjusted OIBDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 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 Final March 6, 2018 Accounts receivable $ 783 $ — $ 783 Other current assets 421 (9 ) 412 Content rights 1,088 (14 ) 1,074 Property and equipment 315 — 315 Goodwill 6,003 154 6,157 Intangible assets 9,175 — 9,175 Equity method investments, including note receivable 870 (157 ) 713 Other noncurrent assets 111 4 115 Current liabilities assumed (494 ) (105 ) (599 ) Debt assumed (2,481 ) — (2,481 ) Deferred income taxes (1,695 ) 123 (1,572 ) Other noncurrent liabilities (383 ) 4 (379 ) Noncontrolling interests (1,700 ) — (1,700 ) Total consideration paid $ 12,013 $ — $ 12,013 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The table below presents a summary of intangible assets acquired (in millions) 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 the Company's pro forma combined revenues and net income (in millions, except per share value). Pro forma results for the three months ended March 31, 2019 are not presented below because the results for Scripps Networks are included in the Company's March 31, 2019 unaudited consolidated statement of operations for the quarterly period. Three months ended March 31, 2018 Revenues $ 2,930 Net income available to Discovery, Inc. 88 Net income per share - basic 0.08 Net income per share - diluted 0.08 I The following table presents their revenue and earnings as reported within the consolidated financial statements (in millions). Three months ended March 31, 2018 Revenues: Advertising $ 195 Distribution 69 Other 10 Total revenues $ 274 Net loss available to Discovery, Inc. $ (49 ) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Summary of Investment Holdings | The Company’s investments consisted of the following (in millions). Category Balance Sheet Location March 31, 2019 December 31, 2018 Time deposits Cash and cash equivalents 2 $ — Equity securities: Money market funds Cash and cash equivalents 200 286 Mutual funds and company-owned life insurance contracts Prepaid and other current assets 25 28 Mutual funds and company-owned life insurance contracts Other noncurrent assets 206 188 Equity method investments: Equity investments Equity method investment 857 841 Note receivable Equity method investment 98 94 Equity Investments: Common stock investments with readily determinable fair values Other noncurrent assets 77 77 Equity investments without readily determinable fair value Other noncurrent assets 382 379 Total investments $ 1,847 $ 1,893 |
Summary of Significant Subsidiaries | The selected statement of operations information for each of the three months ended March 31, 2019 and 2018 (in millions) is summarized in the table below. Three Months Ended March 31, 2019 2018 Selected Statement of Operations Information: Revenues $ 500 $ 286 Cost of revenues 341 201 Operating income 159 12 Pre-tax income from continuing operations 55 7 After-tax net income 43 4 Net income attributable to the entity 43 4 |
Schedule of Unrealized Gains and Losses Related To Common Stock Investments with Readily Determinable Fair Value | The unrealized gains and losses related to the Company's common stock investments with readily determinable fair values held at March 31, 2018 and 2019 are summarized in the table below (in millions). Three Months Ended March 31, 2019 2018 Net gains and losses recognized during the period on equity securities $ — $ 39 Less: Net gains and losses recognized on equity securities sold — — Unrealized gains and losses recognized during reporting period on equity securities still held at the reporting date $ — $ 39 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. Upon adoption of ASU 2016-01, the Lionsgate Collar no longer receives the hedge accounting designation and as such, all changes in the fair value of the Lionsgate Collar are reflected as a component of other expense, net on the consolidated statements of operations. (See Note 4 and Note 8.) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Categories | Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified in the following three categories: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Valuations derived from techniques in which one or more significant inputs are unobservable. |
Schedule of Assets and Liabilities Measured on Recurring Basis | The tables below present assets and liabilities measured at fair value on a recurring basis (in millions). March 31, 2019 Category Balance Sheet Location Level 1 Level 2 Level 3 Total Assets Equity securities: Money market funds Cash and cash equivalents $ 200 $ — $ — $ 200 Mutual funds Prepaid expenses and other current assets 13 — — 13 Company-owned life insurance contracts Prepaid expenses and other current assets — 12 — 12 Mutual funds Other noncurrent assets 172 — — 172 Company-owned life insurance contracts Other noncurrent assets — 34 — 34 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 — 14 — 14 Net investment hedges: Cross-currency swaps Other noncurrent assets — 60 — 60 No hedging designation: Equity (Lionsgate Collar) Prepaid expenses and other current assets — 15 — 15 Equity (Lionsgate Collar) Other noncurrent assets — 28 — 28 Total $ 462 $ 163 $ — $ 625 Liabilities Deferred compensation plan Accrued liabilities $ 33 $ — $ — $ 33 Deferred compensation plan Other noncurrent liabilities 197 — — 197 Derivatives: Cash flow hedges: Foreign exchange Accrued liabilities — 4 — 4 Interest rate swaps Accrued liabilities — 15 — 15 Net investment hedges: Cross-currency swaps Accrued liabilities — 20 — 20 Cross-currency swaps Other noncurrent liabilities — 82 — 82 No hedging designation: Foreign exchange Other noncurrent liabilities — 23 — 23 Cross-currency swaps Accrued liabilities — 1 — 1 Cross-currency swaps Other noncurrent liabilities — 1 — 1 Total $ 230 $ 146 $ — $ 376 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: 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 |
Content Rights (Tables)
Content Rights (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Content Rights | The table below presents the components of content rights (in millions). March 31, 2019 December 31, 2018 Produced content rights: Completed $ 5,849 $ 5,609 In-production 639 612 Coproduced content rights: Completed 707 682 In-production 62 53 Licensed content rights: Acquired 985 1,007 Prepaid (a) 287 154 Content rights, at cost 8,529 8,117 Accumulated content rights expense (5,067 ) (4,735 ) Total content rights, net 3,462 3,382 Current portion (364 ) (313 ) Noncurrent portion $ 3,098 $ 3,069 (a) Prepaid licensed content rights includes payments for rights to the Olympic games of $145 million and $65 million reflected as noncurrent content rights on the consolidated balance sheet as of March 31, 2019 and December 31, 2018 , respectively. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The table below presents the components of outstanding debt (in millions). March 31, 2019 December 31, 2018 5.625% Senior notes, semi-annual interest, due August 2019 $ — $ 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 477 500 2.800% Senior notes, semi-annual interest, due June 2020 600 600 5.050% Senior notes, semi-annual interest, due June 2020 789 789 4.375% Senior notes, semi-annual interest, due June 2021 640 650 2.375% Senior notes, euro denominated, annual interest, due March 2022 337 344 3.300% Senior notes, semi-annual interest, due May 2022 496 500 3.500% Senior notes, semi-annual interest, due June 2022 400 400 2.950% Senior notes, semi-annual interest, due March 2023 1,185 1,185 3.250% Senior notes, semi-annual interest, due April 2023 350 350 3.800% Senior notes, semi-annual interest, due March 2024 450 450 2.500% Senior notes, sterling denominated, annual interest, due September 2024 525 507 3.900% Senior notes, semi-annual interest, due November 2024 497 497 3.450% Senior notes, semi-annual interest, due March 2025 300 300 3.950% Senior notes, semi-annual interest, due June 2025 500 500 4.900% Senior notes, semi-annual interest, due March 2026 700 700 1.900% Senior notes, euro denominated, annual interest, due March 2027 674 688 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 225 225 Program financing line of credit 19 22 Total debt (a) 16,464 16,918 Unamortized discount, premium and debt issuance costs, net (b) (121 ) (125 ) Debt, net of unamortized discount, premium and debt issuance costs 16,343 16,793 Current portion of debt (1,387 ) (1,819 ) Noncurrent portion of debt $ 14,956 $ 14,974 (a) As a result of the adoption of ASU 2016-02, capital lease obligations totaling $252 million as of December 31, 2018 (known as finance lease liabilities effective January 1, 2019) were reclassified from current and noncurrent debt to components of "Accrued liabilities" and "Other noncurrent liabilities" on the consolidated balance sheet to conform with the new presentation. (See Note 1 and Note 7.) (b) Current portion of unamortized discount, premium, and debt issuance costs, net is $3 million . |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense and Supplemental Cash Flow and Balance Sheet Information | The components of lease cost were as follows (in millions): Three Months Ended March 31, 2019 Operating lease cost $ 26 Finance lease cost: Amortization of right-of-use assets $ 11 Interest on lease liabilities 2 Total finance lease cost $ 13 Supplemental cash flow information related to leases was as follows (in millions): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 21 Financing cash flows from finance leases 17 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 4 Finance leases 2 Supplemental balance sheet information related to leases was as follows (in millions): Category Location on Balance Sheet March 31, 2019 Operating Leases Operating lease right-of-use assets Other noncurrent assets $ 326 Operating lease liabilities (current) Accrued liabilities $ 76 Operating lease liabilities (noncurrent) Other noncurrent liabilities 279 Total operating lease liabilities $ 355 Finance Leases Finance lease right-of-use assets Property and equipment, net $ 228 Finance lease liabilities (current) Accrued liabilities $ 45 Finance lease liabilities (noncurrent) Other noncurrent liabilities 197 Total finance lease liabilities $ 242 March 31, 2019 Weighted average remaining lease term: Operating leases 7 years Finance leases 7 years Weighted average discount rate: Operating leases 3.19 % Finance leases 3.60 % |
Schedule of Finance Lease Maturities | Maturities of lease liabilities as of March 31, 2019 were as follows (in millions): Operating Leases Finance Leases April 1, 2019 to March 31, 2020 $ 93 $ 49 April 1, 2020 to March 31, 2021 76 45 April 1, 2021 to March 31, 2022 54 40 April 1, 2022 to March 31, 2023 33 33 April 1, 2023 to March 31, 2024 27 32 Thereafter 128 69 Total lease payments 411 268 Less: Imputed interest (56 ) (26 ) Total $ 355 $ 242 |
Schedule of Operating Lease Maturities | Maturities of lease liabilities as of March 31, 2019 were as follows (in millions): Operating Leases Finance Leases April 1, 2019 to March 31, 2020 $ 93 $ 49 April 1, 2020 to March 31, 2021 76 45 April 1, 2021 to March 31, 2022 54 40 April 1, 2022 to March 31, 2023 33 33 April 1, 2023 to March 31, 2024 27 32 Thereafter 128 69 Total lease payments 411 268 Less: Imputed interest (56 ) (26 ) Total $ 355 $ 242 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 . March 31, 2019 December 31, 2018 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 $ 592 $ 14 $ — $ 4 $ — $ 267 $ 13 $ — $ 3 $ — Interest rate swaps 500 — — 15 — — — — — — Net investment hedges: (a) Cross-currency swaps 3,430 — 60 20 82 3,387 — 41 39 81 Foreign exchange 52 — — — — 52 — 1 — — No hedging designation: Foreign exchange 842 — — — 23 860 — 11 — — Interest rate swaps 25 — — — — 25 — — — — Cross-currency swaps 64 — — 1 1 64 — — 1 — Equity (Lionsgate Collar) 97 15 28 — — 97 14 27 — — Total $ 29 $ 88 $ 40 $ 106 $ 27 $ 80 $ 43 $ 81 (a) Excludes £400 million of sterling notes ( $525 million equivalent at March 31, 2019 ) designated as a net investment hedge. (See Note 6.) |
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). Three Months Ended March 31, 2019 2018 Gains (losses) recognized in accumulated other comprehensive loss (a) : Foreign exchange - derivative adjustments $ 3 $ (10 ) Interest rate - derivative adjustments (15 ) — Gains (losses) reclassified into income from accumulated other comprehensive loss: Foreign exchange - advertising revenue $ 1 $ 1 Foreign exchange - distribution revenue 4 — Foreign exchange - costs of revenues (2 ) (4 ) (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. |
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 three months ended March 31, 2019 or 2018 . Three Months Ended March 31, Amount of gain (loss) recognized in AOCI Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) 2019 2018 2019 2018 Cross currency swaps $ 52 $ (49 ) Interest expense, net $ 7 $ — Foreign exchange contracts (a) (1 ) (1 ) Other expense, net — — Sterling notes (foreign denominated debt) (a) (17 ) (25 ) N/A — — Total $ 34 $ (75 ) $ 7 $ — (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 Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the pretax impact of derivatives not designated as hedges and recognized in other expense, net in the consolidated statements of operations (in millions). Three Months Ended March 31, 2019 2018 Interest rate swaps $ 1 $ — Cross-currency swaps (2 ) (4 ) Credit contracts — (1 ) Equity 1 10 Foreign exchange derivatives $ (34 ) $ — Total in other expense, net $ (34 ) $ 5 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The table below summarizes the Company's redeemable noncontrolling interest balances (in millions). March 31, 2019 December 31, 2018 Discovery Family $ 206 $ 206 MotorTrend Group, LLC ("MTG") 121 121 Oprah Winfrey Network ("OWN") 60 58 Discovery Japan 28 30 PSG 25 — Total $ 440 $ 415 The table below presents the reconciliation of changes in redeemable noncontrolling interests (in millions). Three Months Ended March 31, 2019 2018 Beginning balance $ 415 $ 413 Initial fair value of redeemable noncontrolling interests of acquired businesses 25 — Cash distributions to redeemable noncontrolling interests (10 ) (2 ) Comprehensive income adjustments: Net income attributable to redeemable noncontrolling interests 5 6 Currency translation on redemption values — 2 Retained earnings adjustments: Adjustments of redemption values to the floor 3 — OWN interest adjustment 2 — Ending balance $ 440 $ 419 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | The table below presents the tax effects related to each component of other comprehensive income (loss) and reclassifications made in the consolidated statements of operations (in millions). Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Pretax Tax Net-of-tax Pretax Tax Net-of-tax Currency translation adjustments: Unrealized gains (losses): Foreign currency $ (98 ) $ 2 $ (96 ) $ 71 $ 7 $ 78 Net investment hedges 27 — 27 (75 ) — (75 ) Total currency translation adjustments (71 ) 2 (69 ) (4 ) 7 3 Derivative adjustments: Unrealized gains (losses) (12 ) 4 (8 ) (10 ) 3 (7 ) Reclassifications: Distribution revenue (4 ) — (4 ) — — — Advertising revenue (1 ) — (1 ) (1 ) — (1 ) Costs of revenues 2 — 2 4 (1 ) 3 Total derivative adjustments (15 ) 4 (11 ) (7 ) 2 (5 ) Other comprehensive income (loss) adjustments $ (86 ) $ 6 $ (80 ) $ (11 ) $ 9 $ (2 ) |
Schedule of Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The table below presents the changes in the components of accumulated other comprehensive loss , net of taxes (in millions). Three Months Ended March 31, 2019 Currency Translation Derivatives Pension Plan and SERP Liability Accumulated Other Comprehensive Loss Beginning balance $ (804 ) $ 16 $ 3 $ (785 ) Other comprehensive income before reclassifications (69 ) (8 ) — (77 ) Reclassifications from accumulated other comprehensive loss to net income — (3 ) — (3 ) Other comprehensive income (loss) (69 ) (11 ) — (80 ) Reclassifications to retained earnings resulting from the adoption of ASU 2018-02 (28 ) (2 ) — (30 ) Ending balance $ (901 ) $ 3 $ 3 $ (895 ) Three Months Ended March 31, 2018 Currency Translation AFS (a) Derivatives Accumulated Other Comprehensive Loss Beginning balance $ (615 ) $ 26 $ 4 $ (585 ) Other comprehensive income (loss) before reclassifications 3 — (7 ) (4 ) Reclassifications from accumulated other comprehensive loss to net income — — 2 2 Other comprehensive income (loss) 3 — (5 ) (2 ) Reclassifications to retained earnings resulting from the adoption of ASU 2016-01 — (26 ) — (26 ) Ending balance $ (612 ) $ — $ (1 ) $ (613 ) (a) Effective January 1, 2018, unrealized gains and losses on equity investments with readily determinable fair values are recorded in other expense, net. (See Note 3.) |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by revenue source (in millions). Management uses these categories of revenue to evaluate the performance of its businesses and to assess its financial results and forecasts. Three Months Ended March 31, 2019 2018 U.S. Networks International Networks Other Total U.S. Networks International Networks Other Total Revenues: Advertising $ 1,022 $ 393 $ — $ 1,415 $ 627 $ 385 $ — $ 1,012 Distribution 697 527 — 1,224 514 537 — 1,051 Other 33 32 3 68 33 176 35 244 Totals $ 1,752 $ 952 $ 3 $ 2,707 $ 1,174 $ 1,098 $ 35 $ 2,307 |
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, 2018 Additions Reductions Foreign Currency March 31, 2019 Accounts receivable $ 2,620 2,711 (2,693 ) (13 ) $ 2,625 Deferred revenues: Current 249 293 (306 ) — 236 Long term (a) 120 4 — (1 ) 123 December 31, 2017 Additions (b) Reductions Foreign Currency March 31, 2018 Accounts receivable $ 1,838 2,981 (2,163 ) (2 ) $ 2,654 Deferred revenues: Current 255 354 (304 ) (6 ) 299 Long term (a) 109 3 — — 112 (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 $116 million , respectively, as of March 6, 2018 , the date of the acquisition. (See Note 2.) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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). Three Months Ended March 31, 2019 2018 PRSUs $ 10 $ 2 RSUs 6 7 Stock options 9 5 SARs 5 1 Total share-based compensation expense $ 30 $ 15 Tax benefit recognized $ 3 $ 3 |
Schedule of Liability Classified Equity Awards | The table below presents current and non-current portions of liability-classified share-based compensation awards (in millions). March 31, 2019 December 31, 2018 Current portion of liability-classified awards: PRSUs $ 15 $ 21 SARs 7 2 Non-current portion of liability-classified awards: PRSUs 14 22 SARs 7 9 Total liability-classified share-based compensation award liability $ 43 $ 54 |
Schedule of Other Share-based Compensation, Activity | The table below presents award activity (in millions, except weighted-average grant price) for PRSUs, RSUs and SARs. Three Months Ended March 31, 2019 Awards Weighted-Average Grant Price Awards granted: PRSUs 0.5 $ 28.48 RSUs 2.9 $ 29.01 SARs — $ — Awards converted or settled: PRSUs 1.1 $ 33.31 RSUs 0.7 $ 28.56 SARs 0.9 $ 22.34 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The table below presents stock option activity (in millions, except weighted-average exercise price). Stock Options Weighted-Average Outstanding as of December 31, 2018 21.1 $ 28.86 Granted 2.1 $ 31.01 Exercised (0.4 ) $ 23.47 Forfeited/cancelled (0.2 ) $ 30.26 Outstanding as of March 31, 2019 22.6 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The table below presents unrecognized compensation cost related to non-vested share-based awards and the weighted-average amortization period over which these expenses will be recognized as of March 31, 2019 (in millions, except years). Unrecognized Compensation Cost Weighted-Average Amortization Period (years) RSUs $ 149 3.28 PRSUs 24 1.35 Stock options 115 3.75 SARs 13 1.45 Total unrecognized compensation cost $ 301 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles the U.S. federal statutory income tax rate to the Company's effective income tax rate. Three Months Ended March 31, 2019 2018 U.S. federal statutory income tax provision $ (120 ) 21 % $ 4 21 % State and local income taxes, net of federal tax benefit (20 ) 4 % 7 44 % Effect of foreign operations (11 ) 2 % (4 ) (21 )% Change in uncertain tax positions (6 ) 1 % — (2 )% Renewable energy investments tax credits (See Note 3) — — % — (1 )% Noncontrolling interest adjustment 12 (2 )% — (1 )% U.S. legislative changes — — % 19 109 % Other, net (8 ) 1 % (6 ) (31 )% Income tax (expense) benefit $ (153 ) 27 % $ 20 118 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Income Available to Discovery Stockholders | The table below sets forth the Company's calculated earnings (loss) per share. Earnings (loss) per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2019 2018 Numerator: Net income $ 418 $ 3 Less: Allocation of undistributed (income) loss to Series A-1 convertible preferred stock (38 ) 1 Net income attributable to noncontrolling interests (29 ) (5 ) Net income attributable to redeemable noncontrolling interests (5 ) (6 ) Redeemable noncontrolling interest adjustments to redemption value (5 ) — Net income (loss) allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 341 $ (7 ) Allocation of net income (loss) 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 279 (6 ) Series C-1 convertible preferred stockholders 62 (1 ) Total 341 (7 ) Add: Allocation of undistributed income (loss) to Series A-1 convertible preferred stockholders 38 (1 ) Net income (loss) allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 379 $ (8 ) Denominator — weighted average: Series A, B and C common shares outstanding — basic 524 422 Impact of assumed preferred stock conversion 187 187 Dilutive effect of share-based awards 3 — Series A, B and C common shares outstanding — diluted 714 609 Series C-1 convertible preferred stock outstanding — basic and diluted 6 6 Basic net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.53 $ (0.01 ) Series C-1 convertible preferred stockholders $ 10.31 $ (0.25 ) Diluted net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.53 $ (0.01 ) Series C-1 convertible preferred stockholders $ 10.27 $ (0.25 ) |
Schedule of Weighted Average Basic And Diluted Shares Outstanding | The table below sets forth the Company's calculated earnings (loss) per share. Earnings (loss) per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2019 2018 Numerator: Net income $ 418 $ 3 Less: Allocation of undistributed (income) loss to Series A-1 convertible preferred stock (38 ) 1 Net income attributable to noncontrolling interests (29 ) (5 ) Net income attributable to redeemable noncontrolling interests (5 ) (6 ) Redeemable noncontrolling interest adjustments to redemption value (5 ) — Net income (loss) allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 341 $ (7 ) Allocation of net income (loss) 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 279 (6 ) Series C-1 convertible preferred stockholders 62 (1 ) Total 341 (7 ) Add: Allocation of undistributed income (loss) to Series A-1 convertible preferred stockholders 38 (1 ) Net income (loss) allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 379 $ (8 ) Denominator — weighted average: Series A, B and C common shares outstanding — basic 524 422 Impact of assumed preferred stock conversion 187 187 Dilutive effect of share-based awards 3 — Series A, B and C common shares outstanding — diluted 714 609 Series C-1 convertible preferred stock outstanding — basic and diluted 6 6 Basic net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.53 $ (0.01 ) Series C-1 convertible preferred stockholders $ 10.31 $ (0.25 ) Diluted net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.53 $ (0.01 ) Series C-1 convertible preferred stockholders $ 10.27 $ (0.25 ) |
Schedule of Basic and Diluted Earnings per Share | The table below sets forth the Company's calculated earnings (loss) per share. Earnings (loss) per share amounts may not recalculate due to rounding. Three Months Ended March 31, 2019 2018 Numerator: Net income $ 418 $ 3 Less: Allocation of undistributed (income) loss to Series A-1 convertible preferred stock (38 ) 1 Net income attributable to noncontrolling interests (29 ) (5 ) Net income attributable to redeemable noncontrolling interests (5 ) (6 ) Redeemable noncontrolling interest adjustments to redemption value (5 ) — Net income (loss) allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share $ 341 $ (7 ) Allocation of net income (loss) 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 279 (6 ) Series C-1 convertible preferred stockholders 62 (1 ) Total 341 (7 ) Add: Allocation of undistributed income (loss) to Series A-1 convertible preferred stockholders 38 (1 ) Net income (loss) allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share $ 379 $ (8 ) Denominator — weighted average: Series A, B and C common shares outstanding — basic 524 422 Impact of assumed preferred stock conversion 187 187 Dilutive effect of share-based awards 3 — Series A, B and C common shares outstanding — diluted 714 609 Series C-1 convertible preferred stock outstanding — basic and diluted 6 6 Basic net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.53 $ (0.01 ) Series C-1 convertible preferred stockholders $ 10.31 $ (0.25 ) Diluted net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: Series A, B and C common stockholders $ 0.53 $ (0.01 ) Series C-1 convertible preferred stockholders $ 10.27 $ (0.25 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The table below presents the details of share-based awards that were excluded from the calculation of diluted earnings (loss) per share (in millions). Three Months Ended March 31, 2019 2018 Anti-dilutive share-based awards 21 16 PRSUs whose performance targets have not been achieved 1 2 |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Other Expense, Net | Other Expense, net Three Months Ended March 31, 2019 2018 Foreign currency losses, net $ (9 ) $ (4 ) (Loss) gain on derivative instruments, net (34 ) 5 Change in the value of common stock investments with readily determinable fair value — (38 ) Interest income (a) — 15 Other income, net 8 — Remeasurement gain on previously held equity interest 8 $ — Total other expense, net $ (27 ) $ (22 ) (a) Interest income for the three months ended March 31, 2018 is comprised primarily of interest on proceeds from the issuance of senior notes used to fund the acquisition of Scripps Networks. As of March 31, 2018 , the Company had utilized the proceeds in the acquisition of Scripps Networks. |
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended March 31, 2019 2018 Cash paid for taxes, net $ 34 $ 44 Cash paid for interest, net 197 199 Non-cash investing and financing activities: Equity issued for the acquisition of Scripps Networks — 3,218 Accrued purchases of property and equipment 26 13 Assets acquired under finance lease arrangements 2 24 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions, Revenues and Expenses | The table below presents a summary of the transactions with related parties (in millions). Three Months Ended March 31, 2019 2018 Revenues and service charges: Liberty Group $ 168 $ 145 Equity method investees 74 38 Other 14 10 Total revenues and service charges $ 256 $ 193 Interest income $ 1 $ — Expenses $ (196 ) $ (55 ) |
Schedule of Related Party Transactions Receivables | The table below presents receivables due from related parties (in millions). March 31, 2019 December 31, 2018 Receivables 155 167 Note receivable (a) $ 98 $ 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 2.) |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Segment | Revenues Three Months Ended March 31, 2019 2018 U.S. Networks $ 1,752 $ 1,174 International Networks 952 1,098 Other 3 35 Corporate and inter-segment eliminations — — Total revenues $ 2,707 $ 2,307 |
Schedule of Adjusted OIBDA by Segment | Adjusted OIBDA Three Months Ended March 31, 2019 2018 U.S. Networks $ 1,061 $ 652 International Networks 219 137 Other 1 3 Corporate and inter-segment eliminations (122 ) (83 ) Total Adjusted OIBDA $ 1,159 $ 709 |
Schedule of Reconciliation of Net Income available to Discovery, Inc. to total Adjusted OIBDA | Reconciliation of Net Income available to Discovery, Inc. to Total Adjusted OIBDA Three Months Ended March 31, 2019 2018 Net income (loss) available to Discovery, Inc. 384 (8 ) Net income attributable to noncontrolling interests 29 5 Net income attributable to redeemable noncontrolling interests 5 6 Income tax expense (benefit) 153 (20 ) Income (loss) before income taxes 571 (17 ) Other expense, net 27 22 (Income) loss from equity investees, net (11 ) 22 Loss on extinguishment of debt 5 — Interest expense 182 177 Operating income 774 204 Restructuring and other charges 5 241 Depreciation and amortization 372 193 Share-based compensation 30 15 Scripps Networks transaction and integration costs 7 56 Settlement of a withholding tax claim (29 ) — Total Adjusted OIBDA $ 1,159 $ 709 |
Schedule of Total Assets by Segment | Total Assets March 31, 2019 December 31, 2018 U.S. Networks $ 18,539 $ 18,683 International Networks 7,229 7,208 Other 223 227 Corporate and inter-segment eliminations 6,453 6,432 Total assets $ 32,444 $ 32,550 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs by Reportable Segment | Restructuring and other charges by reportable segments and corporate and inter-segment eliminations were as follows (in millions). Three Months Ended March 31, 2019 2018 U.S. Networks $ 4 $ 34 International Networks 4 100 Corporate and inter-segment eliminations (3 ) 107 Total restructuring and other charges $ 5 $ 241 |
Schedule of Restructuring and Related Costs | Three Months Ended March 31, 2019 2018 Restructuring charges $ 5 $ 164 Other charges — 77 Total restructuring and other charges $ 5 $ 241 |
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 major category were as follows (in millions). U.S. Networks International Networks Corporate and inter-segment eliminations (a) Total December 31, 2018 $ 16 $ 46 $ 46 $ 108 Net contract termination accruals — — (6 ) (6 ) Net employee relocation/termination accruals 4 4 (3 ) 5 Cash paid (11 ) (6 ) (8 ) (25 ) March 31, 2019 $ 9 $ 44 $ 29 $ 82 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet March 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and ASSETS Current assets: Cash and cash equivalents $ — $ 237 $ — $ 134 $ 291 $ 83 $ — $ 745 Receivables, net — — — 434 1,321 870 — 2,625 Content rights, net — — — 28 273 63 — 364 Prepaid expenses and other current assets 1 14 12 50 149 65 — 291 Inter-company trade receivables, net — — — 272 — — (272 ) — Total current assets 1 251 12 918 2,034 1,081 (272 ) 4,025 Investment in and advances to subsidiaries 8,818 13,041 — 6,325 — — (28,184 ) — Noncurrent content rights, net — — — 580 1,564 954 — 3,098 Goodwill, net — — — 3,678 3,309 6,050 — 13,037 Intangible assets, net — — — 242 1,230 7,894 — 9,366 Equity method investments, including note receivable — 98 — 20 295 542 — 955 Other noncurrent assets, including property and equipment, net — 39 18 610 822 493 (19 ) 1,963 Total assets $ 8,819 $ 13,429 $ 30 $ 12,373 $ 9,254 $ 17,014 $ (28,475 ) $ 32,444 LIABILITIES AND EQUITY Current liabilities: Other current liabilities $ 109 $ 27 $ — $ 349 $ 1,141 $ 462 $ — $ 2,088 Inter-company trade payables, net — — — — 272 — (272 ) — Current portion of debt — 106 — 1,268 13 — — 1,387 Total current liabilities 109 133 — 1,617 1,426 462 (272 ) 3,475 Noncurrent portion of debt — 135 — 14,590 231 — — 14,956 Negative carrying amount in subsidiaries, net — — 4,459 — — 2,953 (7,412 ) — Other noncurrent liabilities 2 59 — 625 832 1,775 (20 ) 3,273 Total liabilities 111 327 4,459 16,832 2,489 5,190 (7,704 ) 21,704 Redeemable noncontrolling interests — — — — 440 — — 440 Total Discovery, Inc. stockholders' equity 8,708 13,102 (4,429 ) (4,459 ) 6,325 11,824 (22,363 ) 8,708 Noncontrolling interests — — — — — — 1,592 1,592 Total equity 8,708 13,102 (4,429 ) (4,459 ) 6,325 11,824 (20,771 ) 10,300 Total liabilities and equity $ 8,819 $ 13,429 $ 30 $ 12,373 $ 9,254 $ 17,014 $ (28,475 ) $ 32,444 Condensed Consolidating Balance Sheet December 31, 2018 (in millions) Discovery Scripps Networks 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, net — — — 3,678 3,298 6,030 — 13,006 Intangible assets, net — — — 246 1,261 8,167 — 9,674 Equity method investments, including note receivable — 94 — 23 291 527 — 935 Other noncurrent assets, including property and equipment, net — 35 20 537 607 456 (20 ) 1,635 Total assets $ 8,388 $ 13,710 $ 42 $ 12,048 $ 9,122 $ 17,316 $ (28,076 ) $ 32,550 LIABILITIES AND EQUITY Current liabilities: Current portion of debt $ — $ 106 $ — $ 1,701 $ 12 $ — $ — $ 1,819 Other current liabilities — 30 — 402 1,266 480 — 2,178 Inter-company trade payables, net — — — — 151 — (151 ) — Total current liabilities — 136 — 2,103 1,429 480 (151 ) 3,997 Noncurrent portion of debt — 134 — 14,606 234 — — 14,974 Negative carrying amount in subsidiaries, net — — 5,183 — — 3,427 (8,610 ) — Other noncurrent liabilities 2 56 — 522 754 1,748 (20 ) 3,062 Total liabilities 2 326 5,183 17,231 2,417 5,655 (8,781 ) 22,033 Redeemable noncontrolling interests — — — — 415 — — 415 Total Discovery, Inc. stockholders’ equity 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 Statement of Operations | Condensed Consolidating Statement of Operations Three Months Ended March 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 507 $ 1,296 $ 911 $ (7 ) $ 2,707 Costs of revenues, excluding depreciation and amortization — — — 101 588 245 (4 ) 930 Selling, general and administrative 5 — — 69 425 129 (2 ) 626 Depreciation and amortization — — — 12 80 280 — 372 Restructuring and other charges — — — — 5 — — 5 Total costs and expenses 5 — — 182 1,098 654 (6 ) 1,933 Operating (loss) income (5 ) — — 325 198 257 (1 ) 774 Equity in earnings (loss) of subsidiaries 387 230 220 121 — 146 (1,104 ) — Interest expense, net — — — (175 ) (1 ) (6 ) — (182 ) Loss on extinguishment of debt — — — (5 ) — — — (5 ) Income (loss) from equity investees, net — — — 1 (2 ) 12 — 11 Other income (expense), net — 4 — (6 ) (20 ) (5 ) — (27 ) Income before income taxes 382 234 220 261 175 404 (1,105 ) 571 Income tax benefit (expense) 2 (1 ) — (41 ) (49 ) (64 ) — (153 ) Net income 384 233 220 220 126 340 (1,105 ) 418 Net income attributable to noncontrolling interests — — — — — — (29 ) (29 ) Net income attributable to redeemable noncontrolling interests — — — — — — (5 ) (5 ) Net income available to Discovery, Inc. $ 384 $ 233 $ 220 $ 220 $ 126 $ 340 $ (1,139 ) $ 384 Condensed Consolidating Statement of Operations Three Months Ended March 31, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Revenues $ — $ — $ — $ 488 $ 1,549 $ 273 $ (3 ) $ 2,307 Costs of revenues, excluding depreciation and amortization — — — 107 866 92 (5 ) 1,060 Selling, general and administrative 26 (1 ) — 80 436 66 2 609 Depreciation and amortization — — — 17 93 83 — 193 Restructuring and other charges 8 — — 43 98 92 — 241 Total costs and expenses 34 (1 ) — 247 1,493 333 (3 ) 2,103 Operating (loss) income (34 ) 1 — 241 56 (60 ) — 204 Equity in earnings (loss) of subsidiaries 17 (44 ) 71 9 — 91 (144 ) — Interest expense — (6 ) — (157 ) (12 ) (2 ) — (177 ) (Loss) income from equity investees, net — — — — (31 ) 9 — (22 ) Other income (expense), net — 1 — (24 ) 4 (3 ) — (22 ) (Loss) income before income taxes (17 ) (48 ) 71 69 17 35 (144 ) (17 ) Income tax benefit (expense) 8 — — 2 (2 ) 12 — 20 Net (loss) income (9 ) (48 ) 71 71 15 47 (144 ) 3 Net income attributable to noncontrolling interests — — — — — — (5 ) (5 ) Net income attributable to redeemable noncontrolling interests — — — — — — (6 ) (6 ) Net (loss) income available to Discovery, Inc. $ (9 ) $ (48 ) $ 71 $ 71 $ 15 $ 47 $ (155 ) $ (8 ) |
Condensed Consolidating Statement of Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ 384 $ 233 $ 220 $ 220 $ 126 $ 340 $ (1,105 ) $ 418 Other comprehensive (loss) income adjustments, net of tax: Currency translation (69 ) (17 ) (52 ) (52 ) (35 ) (52 ) 208 (69 ) Derivatives (11 ) — (11 ) (11 ) (11 ) (7 ) 40 (11 ) Comprehensive income 304 216 157 157 80 281 (857 ) 338 Comprehensive income attributable to noncontrolling interests — — — — — — (29 ) (29 ) Comprehensive income attributable to redeemable noncontrolling interests — — — — — — (5 ) (5 ) Comprehensive income attributable to Discovery, Inc. $ 304 $ 216 $ 157 $ 157 $ 80 $ 281 $ (891 ) $ 304 Condensed Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Net income $ (9 ) $ (48 ) $ 71 $ 71 $ 15 $ 47 $ (144 ) $ 3 Other comprehensive income (loss) adjustments, net of tax: Currency translation 3 20 23 23 23 (25 ) (64 ) 3 Derivatives (5 ) — (5 ) (5 ) (5 ) (3 ) 18 (5 ) Comprehensive (loss) income (11 ) (28 ) 89 89 33 19 (190 ) 1 Comprehensive income attributable to noncontrolling interests — — — — — — (5 ) (5 ) Comprehensive income attributable to redeemable noncontrolling interests (2 ) — (2 ) (2 ) (2 ) (1 ) 3 (6 ) Comprehensive (loss) income attributable to Discovery, Inc. $ (13 ) $ (28 ) $ 87 $ 87 $ 31 $ 18 $ (192 ) $ (10 ) |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash provided by (used in) operating activities $ 15 $ — $ 10 $ (8 ) $ (22 ) $ 547 $ — $ 542 Investing Activities Business acquisitions, net of cash acquired — — — — (22 ) — — (22 ) Investments in and advances to equity method investees — — — — (34 ) — — (34 ) Payments for property and equipment — — — (3 ) (33 ) (8 ) — (44 ) Proceeds from derivative instruments — — — — 5 — — 5 Inter-company distributions, and other investing activities, net — — — 20 — 1 (20 ) 1 Cash provided by (used in) investing activities — — — 17 (84 ) (7 ) (20 ) (94 ) Financing Activities Principal repayments of debt, including discount payment and premiums to par value — — — (453 ) — — — (453 ) Principal repayments of finance lease obligations — — — (2 ) (14 ) (1 ) — (17 ) Distributions to noncontrolling interests and redeemable noncontrolling interests — — — — (10 ) (153 ) — (163 ) Share-based plan (payments) proceeds, net (15 ) — — — — — — (15 ) Repayments under program financing line of credit, net — — — — (3 ) — — (3 ) Inter-company contributions (distributions) and other financing activities, net — (78 ) (10 ) 519 (13 ) (439 ) 20 (1 ) Cash used in (provided by) financing activities (15 ) (78 ) (10 ) 64 (40 ) (593 ) 20 (652 ) Effect of exchange rate changes on cash and cash equivalents — — — — (38 ) 1 — (37 ) Net change in cash and cash equivalents — (78 ) — 73 (184 ) (52 ) — (241 ) Cash and cash equivalents, beginning of period — 315 — 61 475 135 — 986 Cash and cash equivalents, end of period $ — $ 237 $ — $ 134 $ 291 $ 83 $ — $ 745 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 (in millions) Discovery Scripps Networks DCH DCL Non-Guarantor Other Non- Reclassifications Discovery and Operating Activities Cash (used in) provided by operating activities $ (54 ) $ (1 ) $ (8 ) $ 17 $ 210 $ (4 ) $ — $ 160 Investing Activities Business acquisitions, net of cash acquired (8,714 ) 54 — — — 95 — (8,565 ) (Payments for) proceeds from investments — — — — (28 ) 6 — (22 ) Purchases of property and equipment — — — (25 ) (23 ) — — (48 ) Payments for derivative instruments, net — — — — (42 ) — — (42 ) Other investing activities, net — 6 — — 2 (6 ) — 2 Cash (used in) provided by investing activities (8,714 ) 60 — (25 ) (91 ) 95 — (8,675 ) Financing Activities Borrowings under term loan agreements — — — 2,000 — — — 2,000 Principal repayments of capital lease obligations — — — (2 ) (11 ) — — (13 ) Distributions to redeemable noncontrolling interests — — — — (2 ) — — (2 ) Share-based plan proceeds, net 23 — — — — — — 23 Borrowing under program financing line of credit — — — — 22 — — 22 Other financing activities, net 8,745 — 8 (8,445 ) (319 ) — — (11 ) Cash provided by (used in) financing activities 8,768 — 8 (6,447 ) (310 ) — — 2,019 Effect of exchange rate changes on cash and cash equivalents — — — — (1 ) — — (1 ) Net change in cash and cash equivalents — 59 — (6,455 ) (192 ) 91 — (6,497 ) Cash and cash equivalents, beginning of period — — — 6,800 509 — — 7,309 Cash and cash equivalents, end of period $ — $ 59 $ — $ 345 $ 317 $ 91 $ — $ 812 |
Description of Business and B_3
Description of Business and Basis of Presentation (Accounting and Reporting Pronouncements Adopted) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jul. 01, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease right-of-use assets | $ 4 | ||||
Operating lease, liability | $ 355 | ||||
Cumulative effect of accounting changes | $ 0 | $ 7 | |||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease right-of-use assets | 342 | ||||
Operating lease, liability | 372 | ||||
Prepaid rent and deferred rent receivables, net | 30 | ||||
Reclassification of capital lease obligations | 252 | $ 252 | |||
Accounting Standards Update 2018-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of accounting changes | (30) | ||||
Accumulated Other Comprehensive Loss | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of accounting changes | (30) | (26) | |||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of accounting changes | (30) | ||||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2017-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of accounting changes | $ (87) | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of accounting changes | 30 | $ 33 | |||
Retained Earnings | Accounting Standards Update 2018-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of accounting changes | $ 30 |
Description of Business and B_4
Description of Business and Basis of Presentation (Concentrations Risk) (Details) - Customer Concentration Risk - Largest 10 Distributors - Distribution | 3 Months Ended |
Mar. 31, 2019 | |
U.S. Networks | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 97.00% |
International Networks | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 39.00% |
Acquisitions (Scripps Networks
Acquisitions (Scripps Networks Interactive, Inc. ("Scripps Networks")) (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 06, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill, net | $ 13,037 | $ 13,006 | |
Scripps Networks | |||
Business Acquisition [Line Items] | |||
Share price portion paid in cash (in dollars per share) | $ 65.82 | ||
Equity interest issued or issuable (in shares) | 1,000,000 | ||
Goodwill, net | $ 6,157 | ||
Scripps Networks | U.S. Networks | |||
Business Acquisition [Line Items] | |||
Goodwill, net | 5,300 | ||
Scripps Networks | International Networks | |||
Business Acquisition [Line Items] | |||
Goodwill, net | $ 817 | ||
No Election or Mixed Consideration Election | Scripps Networks | |||
Business Acquisition [Line Items] | |||
Share price portion paid in cash (in dollars per share) | $ 65.82 | ||
Equity interest issued or issuable (in shares) | 1.0584 | ||
Cash Consideration Election | Scripps Networks | |||
Business Acquisition [Line Items] | |||
Share price portion paid in cash (in dollars per share) | $ 90 | ||
Stock Consideration Election | Scripps Networks | |||
Business Acquisition [Line Items] | |||
Equity interest issued or issuable (in shares) | 3.9392 |
Acquisitions (Components of the
Acquisitions (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 (Fair Value of Ass
Acquisitions (Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Mar. 06, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill, net | $ 13,037 | $ 13,006 | |
Scripps Networks | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 783 | ||
Other current assets | 412 | ||
Content rights | 1,074 | ||
Property and equipment | 315 | ||
Goodwill, net | 6,157 | ||
Intangible assets | 9,175 | ||
Equity method investments, including note receivable | 713 | ||
Other noncurrent assets | 115 | ||
Current liabilities assumed | (599) | ||
Debt assumed | (2,481) | ||
Deferred income taxes | (1,572) | ||
Other noncurrent liabilities | (379) | ||
Noncontrolling interests | (1,700) | ||
Total consideration paid | 12,013 | ||
Scripps Networks | Preliminary | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 783 | ||
Other current assets | 421 | ||
Content rights | 1,088 | ||
Property and equipment | 315 | ||
Goodwill, net | 6,003 | ||
Intangible assets | 9,175 | ||
Equity method investments, including note receivable | 870 | ||
Other noncurrent assets | 111 | ||
Current liabilities assumed | (494) | ||
Debt assumed | (2,481) | ||
Deferred income taxes | (1,695) | ||
Other noncurrent liabilities | (383) | ||
Noncontrolling interests | (1,700) | ||
Total consideration paid | 12,013 | ||
Scripps Networks | Measurement Period Adjustments | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 0 | ||
Other current assets | (9) | ||
Content rights | (14) | ||
Property and equipment | 0 | ||
Goodwill, net | 154 | ||
Intangible assets | 0 | ||
Equity method investments, including note receivable | (157) | ||
Other noncurrent assets | 4 | ||
Current liabilities assumed | (105) | ||
Debt assumed | 0 | ||
Deferred income taxes | 123 | ||
Other noncurrent liabilities | 4 | ||
Noncontrolling interests | 0 | ||
Total consideration paid | $ 0 |
Acquisitions (Intangible Assets
Acquisitions (Intangible Assets Acquired) (Details) - Scripps Networks $ in Millions | Mar. 06, 2018USD ($) |
Business Acquisition [Line Items] | |
Fair Value | $ 9,175 |
Trademarks and trade names | |
Business Acquisition [Line Items] | |
Fair Value | $ 1,225 |
Weighted Average Useful Life in Years | 10 years |
Advertiser relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 4,995 |
Weighted Average Useful Life in Years | 10 years |
Advertising backlog | |
Business Acquisition [Line Items] | |
Fair Value | $ 280 |
Weighted Average Useful Life in Years | 1 year |
Affiliate relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 2,455 |
Weighted Average Useful Life in Years | 12 years |
Broadcast licenses | |
Business Acquisition [Line Items] | |
Fair Value | $ 220 |
Weighted Average Useful Life in Years | 6 years |
Acquisitions (Other) (Details)
Acquisitions (Other) (Details) - USD ($) $ in Millions | Jan. 08, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Jan. 07, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Remeasurement gain on previously held equity interest | $ 8 | $ 0 | |||
Goodwill | $ 13,037 | $ 13,006 | |||
PSG | |||||
Business Acquisition [Line Items] | |||||
Cash consideration transferred | $ 41 | ||||
Step acquisition, equity interest in acquiree, percentage | 20.10% | ||||
Percentage of voting interests acquired | 70.70% | ||||
Remeasurement gain on previously held equity interest | $ 8 | ||||
Net assets acquired | 79 | ||||
Cash acquired | 19 | ||||
Intangible assets | 29 | ||||
Redeemable noncontrolling interest | 25 | ||||
Goodwill | $ 37 |
Acquisitions (Schedule of Pro F
Acquisitions (Schedule of Pro Forma Financial Information) (Details) - Scripps Networks $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenues | $ | $ 2,930 |
Net income available to Discovery, Inc. | $ | $ 88 |
Net income per share - basic (in dollars per share) | $ / shares | $ 0.08 |
Net income per share - diluted (in dollars per share) | $ / shares | $ 0.08 |
Acquisitions (Impact of Busines
Acquisitions (Impact of Business Combinations) (Details) - Scripps Networks $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Total revenues | $ 274 |
Net loss available to Discovery, Inc. | (49) |
Advertising | |
Business Acquisition [Line Items] | |
Total revenues | 195 |
Distribution | |
Business Acquisition [Line Items] | |
Total revenues | 69 |
Other | |
Business Acquisition [Line Items] | |
Total revenues | $ 10 |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Total Investments | $ 1,847 | $ 1,893 |
Cash and cash equivalents | ||
Investment [Line Items] | ||
Time deposits | 2 | 0 |
Cash and cash equivalents | Money market funds | ||
Investment [Line Items] | ||
Equity securities and investments | 200 | 286 |
Prepaid expenses and other current assets | Mutual funds and company-owned life insurance contracts | ||
Investment [Line Items] | ||
Equity securities and investments | 25 | 28 |
Other noncurrent assets | ||
Investment [Line Items] | ||
Equity investments without readily determinable fair value | 382 | 379 |
Other noncurrent assets | Mutual funds and company-owned life insurance contracts | ||
Investment [Line Items] | ||
Equity securities and investments | 206 | 188 |
Other noncurrent assets | Common Stock | ||
Investment [Line Items] | ||
Equity securities and investments | 77 | 77 |
Equity method investment | Equity investments | ||
Investment [Line Items] | ||
Equity method investments | 857 | 841 |
Equity method investment | Note receivable | ||
Investment [Line Items] | ||
Equity method investments | $ 98 | $ 94 |
Investments (Equity Method Inve
Investments (Equity Method Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Investments [Abstract] | |||
Variable interest, maximum exposure to loss | $ 590 | ||
Carrying value of investments in VIE's accounted for using the equity method | 546 | $ 528 | |
Variable interest entity gains (losses) | $ 3 | $ (11) |
Investments (UKTV) (Details)
Investments (UKTV) (Details) $ in Millions | Apr. 01, 2019USD ($)channel | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 06, 2018 | Aug. 11, 2011 |
UKTV | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 402 | $ 386 | |||
Note receivable | 98 | 94 | |||
nC Plus | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 185 | $ 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% | ||||
BBC Studios | UKTV | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Series of agreements, content partnership, term | 10 years | ||||
Series of agreements, number of entertainment channels sold | channel | 3 | ||||
Series of agreements, payments to be received | $ 240 |
Investments (Renewable Energy I
Investments (Renewable Energy Investments) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of investments in VIE's accounted for using the equity method | $ 546,000,000 | $ 528,000,000 | |
Variable interest, maximum exposure to loss | 590,000,000 | ||
Solar Ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire equity method investments | 0 | $ 17,000,000 | |
Carrying value of investments in VIE's accounted for using the equity method | 90,000,000 | $ 89,000,000 | |
Variable interest, maximum exposure to loss | $ 4,000,000 |
Investments (Investor Basis Dif
Investments (Investor Basis Differential) (Details) - Various equity method investments, aggregated - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2018 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Amortization of intangible assets | $ 1 | $ 7 |
Expected future amortization of intangible assets | $ 290 |
Investments (Significant Subsid
Investments (Significant Subsidiaries) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Income (loss) from equity investees, net | $ 11 | $ (22) |
Equity Method Investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 500 | 286 |
Cost of revenues | 341 | 201 |
Operating income | 159 | 12 |
Pre-tax income from continuing operations | 55 | 7 |
After-tax net income | 43 | 4 |
Income (loss) from equity investees, net | $ 43 | $ 4 |
Investments (Common Stock Inves
Investments (Common Stock Investments with Readily Determinable Fair Value ) (Details) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Jan. 01, 2018 |
Debt Securities, Available-for-sale [Line Items] | |||||
Cumulative effect of accounting changes | $ 0 | $ 7 | |||
Accounting Standards Update 2016-01 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cumulative effect of accounting changes | (26) | ||||
Accumulated Other Comprehensive Loss | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cumulative effect of accounting changes | (30) | (26) | |||
Retained Earnings | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cumulative effect of accounting changes | $ 30 | 33 | |||
Lionsgate Collar | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Purchase of available for sale securities (in shares) | 5 | ||||
Net gains and losses recognized during the period on equity securities | $ 0 | $ 39 | |||
Less: Net gains and losses recognized on equity securities sold | 0 | 0 | |||
Unrealized gains and losses recognized during reporting period on equity securities still held at the reporting date | $ 0 | $ 39 | |||
Percentage of shares pledged as collateral | 50.00% | 50.00% | |||
Lionsgate Collar | Accumulated Other Comprehensive Loss | Accounting Standards Update 2016-01 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Reclassification of accumulated other comprehensive income to retained earnings | (32) | ||||
Cumulative effect of accounting changes | (26) | ||||
Lionsgate Collar | Retained Earnings | Accounting Standards Update 2016-01 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Reclassification of accumulated other comprehensive income to retained earnings | 32 | ||||
Cumulative effect of accounting changes | $ 26 |
Investments (Equity Investments
Investments (Equity Investments Without Readily Determinable Fair Values Assessed Under the Measurement Alternative) (Details) $ in Millions | Mar. 31, 2019USD ($) |
GroupNineMedia | |
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 |
GroupNineMedia | |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | $ 29 | $ 27 |
Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 88 | 80 |
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 | 1 |
Accrued liabilities | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | ||
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 | 4 | 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 | 0 |
Accrued liabilities | Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 20 | 39 |
Other noncurrent liabilities | Not Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 23 | 0 |
Other noncurrent liabilities | Not Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 1 | 0 |
Other noncurrent liabilities | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
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 | 82 | 81 |
Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 625 | 686 |
Liabilities | 376 | 339 |
Fair Value, Measurements, Recurring | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 200 | 286 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 13 | 13 |
Company-owned life insurance contracts | 12 | 15 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 15 | 14 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 14 | 13 |
Fair Value, Measurements, Recurring | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 172 | 158 |
Company-owned life insurance contracts | 34 | 30 |
Common stock | 77 | 77 |
Fair Value, Measurements, Recurring | Other noncurrent assets | 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 | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 28 | 27 |
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 | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 60 | 41 |
Fair Value, Measurements, Recurring | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 33 | 37 |
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 | 4 | 3 |
Fair Value, Measurements, Recurring | Accrued liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 15 | |
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 | 20 | 39 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 197 | 178 |
Fair Value, Measurements, Recurring | Other noncurrent liabilities | Not Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 23 | |
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 | 1 | 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 | 82 | 81 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 462 | 534 |
Liabilities | 230 | 215 |
Fair Value, Measurements, Recurring | Level 1 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 200 | 286 |
Fair Value, Measurements, Recurring | Level 1 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 13 | 13 |
Company-owned life insurance contracts | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Prepaid expenses and other current assets | Equity (Lionsgate Collar) | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Prepaid expenses and other current assets | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Prepaid expenses and other current assets | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 172 | 158 |
Company-owned life insurance contracts | 0 | 0 |
Common stock | 77 | 77 |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent assets | 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 | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Lionsgate Collar | ||
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 | 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 | Accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 33 | 37 |
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 | Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||
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 | 197 | 178 |
Fair Value, Measurements, Recurring | Level 1 | Other noncurrent liabilities | Not 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 | Other noncurrent liabilities | Not 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 | 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 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 163 | 152 |
Liabilities | 146 | 124 |
Fair Value, Measurements, Recurring | Level 2 | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 0 | 0 |
Company-owned life insurance contracts | 12 | 15 |
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets | Equity (Lionsgate Collar) | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 15 | |
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 14 | |
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 14 | 13 |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 0 | 0 |
Company-owned life insurance contracts | 34 | 30 |
Common stock | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent assets | 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 | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 28 | 27 |
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 | Designated as Hedging Instrument | Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 60 | 41 |
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 | 4 | 3 |
Fair Value, Measurements, Recurring | Level 2 | Accrued liabilities | Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 15 | |
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 | 20 | 39 |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Other noncurrent liabilities | Not Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 23 | |
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 | 1 | 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 | 82 | 81 |
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] | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 0 | 0 |
Company-owned life insurance contracts | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Prepaid expenses and other current assets | Equity (Lionsgate Collar) | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Prepaid expenses and other current assets | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Lionsgate Collar | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Prepaid expenses and other current assets | Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Trading securities | 0 | 0 |
Company-owned life insurance contracts | 0 | 0 |
Common stock | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent assets | 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 | Not Designated as Hedging Instrument | Equity (Lionsgate Collar) | Lionsgate Collar | ||
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 | 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 | 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 | Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||
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 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other noncurrent liabilities | Not 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 | Other noncurrent liabilities | Not 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 | 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 (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Billions | Mar. 31, 2019 | Dec. 31, 2018 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes, fair value | $ 16 | $ 16 |
Content Rights (Schedule Of Con
Content Rights (Schedule Of Content Rights) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Licensed content rights: | ||
Accumulated content rights expense | $ (5,067) | $ (4,735) |
Total content rights, net | 3,462 | 3,382 |
Current portion | (364) | (313) |
Noncurrent portion | 3,098 | 3,069 |
Content rights | ||
Produced content rights: | ||
Completed | 5,849 | 5,609 |
In-production | 639 | 612 |
Coproduced content rights: | ||
Completed | 707 | 682 |
In-production | 62 | 53 |
Licensed content rights: | ||
Acquired | 985 | 1,007 |
Prepaid | 287 | 154 |
Content rights, at cost | 8,529 | 8,117 |
Olympic games | ||
Licensed content rights: | ||
Noncurrent portion | $ 145 | $ 65 |
Debt (Outstanding Debt) (Detail
Debt (Outstanding Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Total debt | $ 16,464 | $ 16,918 | |
Unamortized discount, premium and debt issuance costs, net (b) | (121) | (125) | |
Debt, net of unamortized discount, premium and debt issuance costs | 16,343 | 16,793 | |
Current portion of debt | (1,387) | (1,819) | |
Noncurrent portion of debt | 14,956 | 14,974 | |
Unamortized discount, premium and debt issuance costs, current | 3 | ||
Line of Credit | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Total debt | 225 | 225 | |
Line of Credit | Program financing line of credit | |||
Debt Instrument [Line Items] | |||
Total debt | $ 19 | 22 | |
5.625% Senior notes, semi-annual interest, due August 2019 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.625% | ||
Total debt | $ 0 | 411 | |
2.200% Senior notes, semi-annual interest, due September 2019 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.20% | ||
Total debt | $ 500 | 500 | |
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] | |||
Debt instrument interest rate | 2.75% | ||
Total debt | $ 477 | 500 | |
2.800% Senior notes, semi-annual interest, due June 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.80% | ||
Total debt | $ 600 | 600 | |
5.050% Senior notes, semi-annual interest, due June 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.05% | ||
Total debt | $ 789 | 789 | |
4.375% Senior notes, semi-annual interest, due June 2021 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.375% | ||
Total debt | $ 640 | 650 | |
2.375% Senior notes, euro denominated, annual interest, due March 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.375% | ||
Total debt | $ 337 | 344 | |
3.300% Senior notes, semi-annual interest, due May 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.30% | ||
Total debt | $ 496 | 500 | |
3.500% Senior notes, semi-annual interest, due June 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.50% | ||
Total debt | $ 400 | 400 | |
2.950% Senior notes, semi-annual interest, due March 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.95% | ||
Total debt | $ 1,185 | 1,185 | |
3.250% Senior notes, semi-annual interest, due April 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.25% | ||
Total debt | $ 350 | 350 | |
3.800% Senior notes, semi-annual interest, due March 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.80% | ||
Total debt | $ 450 | 450 | |
2.500% Senior notes, sterling denominated, annual interest, due September 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.50% | ||
Total debt | $ 525 | 507 | |
3.900% Senior notes, semi-annual interest, due November 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.90% | ||
Total debt | $ 497 | 497 | |
3.450% Senior notes, semi-annual interest, due March 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.45% | ||
Total debt | $ 300 | 300 | |
3.950% Senior notes, semi-annual interest, due June 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.95% | ||
Total debt | $ 500 | 500 | |
4.900% Senior notes, semi-annual interest, due March 2026 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.90% | ||
Total debt | $ 700 | 700 | |
1.900% Senior notes, euro denominated, annual interest, due March 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 1.90% | ||
Total debt | $ 674 | 688 | |
3.950% Senior notes, semi-annual interest, due March 2028 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.95% | ||
Total debt | $ 1,700 | 1,700 | |
5.000% Senior notes, semi-annual interest, due September 2037 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.00% | ||
Total debt | $ 1,250 | 1,250 | |
6.350% Senior notes, semi-annual interest, due June 2040 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.35% | ||
Total debt | $ 850 | 850 | |
4.950% Senior notes, semi-annual interest, due May 2042 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.95% | ||
Total debt | $ 500 | 500 | |
4.875% Senior notes, semi-annual interest, due April 2043 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.875% | ||
Total debt | $ 850 | 850 | |
5.200% Senior notes, semi-annual interest, due September 2047 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.20% | ||
Total debt | $ 1,250 | 1,250 | |
Accounting Standards Update 2016-02 | |||
Debt Instrument [Line Items] | |||
Reclassification of capital lease obligations | $ 252 | $ 252 |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) $ in Millions | Mar. 21, 2019USD ($) | Apr. 03, 2018USD ($) | Mar. 06, 2018USD ($) | Mar. 13, 2017USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 21, 2017USD ($)$ / £ |
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 16,464 | $ 16,918 | ||||||
Loss on extinguishment of debt | 5 | $ 0 | ||||||
5.625% Senior notes, semi-annual interest, due August 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 0 | 411 | ||||||
Debt instrument interest rate | 5.625% | |||||||
2.750% Senior notes, semi-annual interest, due November 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 477 | 500 | ||||||
Debt instrument interest rate | 2.75% | |||||||
2.800% Senior notes, semi-annual interest, due June 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 600 | 600 | ||||||
Debt instrument interest rate | 2.80% | |||||||
3.500% Senior notes, semi-annual interest, due June 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 400 | 400 | ||||||
Debt instrument interest rate | 3.50% | |||||||
3.900% Senior notes, semi-annual interest, due November 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 497 | 497 | ||||||
Debt instrument interest rate | 3.90% | |||||||
3.950% Senior notes, semi-annual interest, due June 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 500 | 500 | ||||||
Debt instrument interest rate | 3.95% | |||||||
2.200% Senior notes, semi-annual interest, due September 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 500 | 500 | ||||||
Debt instrument interest rate | 2.20% | |||||||
2.950% Senior notes, semi-annual interest, due March 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,185 | 1,185 | ||||||
Debt instrument interest rate | 2.95% | |||||||
3.950% Senior notes, semi-annual interest, due March 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,700 | 1,700 | ||||||
Debt instrument interest rate | 3.95% | |||||||
5.000% Senior notes, semi-annual interest, due September 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,250 | 1,250 | ||||||
Debt instrument interest rate | 5.00% | |||||||
5.200% Senior notes, semi-annual interest, due September 2047 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,250 | 1,250 | ||||||
Debt instrument interest rate | 5.20% | |||||||
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] | ||||||||
Long-term debt, gross | $ 450 | 450 | ||||||
Debt instrument interest rate | 3.80% | |||||||
4.900% Senior notes, semi-annual interest, due March 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 700 | 700 | ||||||
Debt instrument interest rate | 4.90% | |||||||
5.050% Senior notes, semi-annual interest, due June 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 789 | $ 789 | ||||||
Debt instrument interest rate | 5.05% | |||||||
Senior Notes | 5.625% Senior notes, semi-annual interest, due August 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 411 | |||||||
Debt instrument interest rate | 5.625% | |||||||
Payment for debt extinguishment or debt prepayment cost | $ 5 | |||||||
Loss on extinguishment of debt | $ 5 | |||||||
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 | $ 2 | |||||||
Debt conversion, original debt, amount | $ 2,300 | |||||||
Senior Notes | 2.750% Senior notes, semi-annual interest, due November 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 2.75% | 2.75% | ||||||
Senior Notes | 2.800% Senior notes, semi-annual interest, due June 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 2.80% | 2.80% | ||||||
Senior Notes | 3.500% Senior notes, semi-annual interest, due June 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 3.50% | 3.50% | ||||||
Senior Notes | 3.900% Senior notes, semi-annual interest, due November 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 3.90% | 3.90% | ||||||
Senior Notes | 3.950% Senior notes, semi-annual interest, due June 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 3.95% | 3.95% | ||||||
Senior Notes | 2.200% Senior notes, semi-annual interest, due September 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 500 | |||||||
Debt instrument interest rate | 2.20% | |||||||
Senior Notes | 2.950% Senior notes, semi-annual interest, due March 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,200 | |||||||
Debt instrument interest rate | 2.95% | |||||||
Senior Notes | 3.950% Senior notes, semi-annual interest, due March 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,700 | |||||||
Debt instrument interest rate | 3.95% | |||||||
Senior Notes | 5.000% Senior notes, semi-annual interest, due September 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,300 | |||||||
Debt instrument interest rate | 5.00% | |||||||
Senior Notes | 5.200% Senior notes, semi-annual interest, due September 2047 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,300 | |||||||
Debt instrument interest rate | 5.20% | |||||||
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] | ||||||||
Long-term debt, gross | $ 450 | |||||||
Debt instrument interest rate | 3.80% | |||||||
Unamortized discount | $ 1 | |||||||
Debt issuance cost | 4 | |||||||
Senior Notes | 4.900% Senior notes, semi-annual interest, due March 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 200 | |||||||
Debt instrument interest rate | 4.90% | |||||||
Debt issuance cost | $ 2 | |||||||
Unamortized premium | $ 10 | |||||||
Sterling Notes | 2.500% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 540 | |||||||
Debt instrument interest rate | 2.50% | |||||||
Exchange rate at issuance (in usd per gbp) | $ / £ | 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 |
Debt (Term Loans) (Details)
Debt (Term Loans) (Details) - Unsecured Debt - USD ($) $ in Billions | Aug. 11, 2017 | Mar. 06, 2018 |
Three Year Delayed Draw Tranche Unsecured Term Loan Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowings schedule repayment period, in years | 3 years | |
Unsecured long-term debt, noncurrent | $ 1 | |
Commitment fee percentage | 0.20% | |
Five Year Delayed Draw Tranche Unsecured Term Loan Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowings schedule repayment period, in years | 5 years | |
Unsecured long-term debt, noncurrent | $ 1 | |
Commitment fee percentage | 0.20% |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Details) | Aug. 11, 2017USD ($)renewalRate | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 10, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||
Long-term debt, gross | $ | $ 16,464,000,000 | $ 16,918,000,000 | ||
Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Unused capacity, commitment fee percentage | 0.20% | |||
Line of Credit | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Percentage bearing variable interest, percentage rate | 1.30% | |||
Line of Credit | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Percentage bearing variable interest, percentage rate | 0.30% | |||
Maximum | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 550.00% | |||
Maximum | Step Down 1, one year after the closing of the Scripps Networks acquisition | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 500.00% | |||
Maximum | Step Down 2, two years after the closing of the Scripps Networks acquisition | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 450.00% | |||
Minimum | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 100.00% | |||
Minimum | Step Down 1, one year after the closing of the Scripps Networks acquisition | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 100.00% | |||
Minimum | Step Down 2, two years after the closing of the Scripps Networks acquisition | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Supplementary leverage ratio | Rate | 100.00% | |||
Revolving credit facility | Line of Credit | ||||
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 | |||
Long-term debt, gross | $ | $ 225,000,000 | $ 225,000,000 | ||
Weighted average interest rate | 3.79% | 3.82% | ||
Outstanding borrowings | $ | $ 0 | |||
Revolver sublimit for standby letters of credit | Line 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 | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit, maximum borrowing capacity | $ | $ 50,000,000 |
Debt (Program Financing Line of
Debt (Program Financing Line of Credit) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 12, 2018 |
Line of Credit Facility [Line Items] | |||
Long-term debt, gross | $ 16,464,000,000 | $ 16,918,000,000 | |
Program financing line of credit | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 26,000,000 | ||
Long-term debt, gross | $ 19,000,000 | $ 22,000,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lessee, lease, renewal term | 10 years |
Lessee, operating lease, lease not yet commenced, amount | $ 515 |
Lessee, operating lease, lease not yet commenced, renewal term | 10 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, lease not yet commenced, term of contract | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, lease, remaining term of contract | 15 years |
Lessee, operating lease, lease not yet commenced, term of contract | 18 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 26 |
Finance lease cost: | |
Amortization of right-of-use assets | 11 |
Interest on lease liabilities | 2 |
Total finance lease cost | $ 13 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related to Leases) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 21 |
Financing cash flows from finance leases | 17 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating lease right-of-use assets | 4 |
Finance lease right-of-use assets | $ 2 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related to Leases) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases | |
Operating lease right-of-use assets | $ 4 |
Total | 355 |
Finance Leases | |
Finance lease right-of-use assets | 2 |
Total | $ 242 |
Weighted average remaining lease term, operating leases | 7 years |
Weighted average remaining lease term, finance leases | 7 years |
Weighted average discount rate, operating leases | 3.19% |
Weighted average discount rate, finance leases | 3.60% |
Other noncurrent assets | |
Operating Leases | |
Operating lease right-of-use assets | $ 326 |
Accrued liabilities | |
Operating Leases | |
Operating lease liabilities (current) | 76 |
Finance Leases | |
Finance lease liabilities (current) | 45 |
Other noncurrent liabilities | |
Operating Leases | |
Operating lease liabilities (noncurrent) | 279 |
Finance Leases | |
Finance lease liabilities (noncurrent) | 197 |
Property and equipment, net | |
Finance Leases | |
Finance lease right-of-use assets | $ 228 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 | $ 93 |
2020 | 76 |
2021 | 54 |
2022 | 33 |
2023 | 27 |
Thereafter | 128 |
Total lease payments | 411 |
Less: Imputed interest | (56) |
Total | 355 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
2019 | 49 |
2020 | 45 |
2021 | 40 |
2022 | 33 |
2023 | 32 |
Thereafter | 69 |
Total lease payments | 268 |
Less: Imputed interest | (26) |
Total | $ 242 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) | 3 Months Ended | ||||
Mar. 31, 2019USD ($)agreement | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 01, 2018USD ($) | Jan. 01, 2018USD ($) | |
Derivative [Line Items] | |||||
Cumulative effect of accounting changes | $ 0 | $ 7,000,000 | |||
Amounts eligible to be offset under master netting agreements | $ 0 | $ 0 | |||
Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Net deferred gains on derivative instruments expected to be reclassified from AOCI to income in the next 12 months | $ 10,000,000 | ||||
Accumulated Other Comprehensive Loss | |||||
Derivative [Line Items] | |||||
Cumulative effect of accounting changes | $ (30,000,000) | $ (26,000,000) | |||
Accounting Standards Update 2017-12 | Accumulated Other Comprehensive Loss | |||||
Derivative [Line Items] | |||||
Cumulative effect of accounting changes | $ (87,000,000) | ||||
Forward Starting Swap | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Number of instruments held | agreement | 2 | ||||
Notional amount | $ 500,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Derivative Instruments, Fair Value) (Details) £ in Millions, $ in Millions | Mar. 31, 2019GBP (£) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 21, 2017GBP (£) |
Derivatives, Fair Value [Line Items] | ||||
Long-term debt, gross | $ 16,464 | $ 16,918 | ||
Prepaid expenses and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 29 | 27 | ||
Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 88 | 80 | ||
Accrued liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | 40 | 43 | ||
Other noncurrent liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | 106 | 81 | ||
Not Designated as Hedging Instrument | Foreign exchange | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 842 | 860 | ||
Not Designated as Hedging Instrument | Foreign exchange | Prepaid expenses 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 | 0 | 11 | ||
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 | 23 | 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 expenses and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 0 | ||
Not Designated as Hedging Instrument | Interest rate swaps | Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 0 | ||
Not Designated as Hedging Instrument | Interest rate swaps | Accrued liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 0 | 0 | ||
Not Designated as Hedging Instrument | Interest rate swaps | Other noncurrent liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 0 | 0 | ||
Not Designated as Hedging Instrument | Cross-currency swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 64 | 64 | ||
Not Designated as Hedging Instrument | Cross-currency swaps | Prepaid expenses and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 0 | ||
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 0 | ||
Not Designated as Hedging Instrument | Cross-currency swaps | Accrued liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 1 | 1 | ||
Not Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 1 | 0 | ||
Not Designated as Hedging Instrument | Equity (Lionsgate collar) | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 97 | 97 | ||
Not Designated as Hedging Instrument | Equity (Lionsgate collar) | Prepaid expenses and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 15 | 14 | ||
Not Designated as Hedging Instrument | Equity (Lionsgate collar) | Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 28 | 27 | ||
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 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 592 | 267 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 14 | 13 | ||
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 | 4 | 3 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange | Other noncurrent liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 0 | 0 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 500 | 0 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Prepaid expenses and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 0 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 0 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Accrued liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 15 | 0 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | 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 | £ | £ 525 | £ 400 | ||
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional | 52 | 52 | ||
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Prepaid expenses and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 0 | ||
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 1 | ||
Net investment hedges | Designated as Hedging Instrument | Foreign exchange | Accrued liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 0 | 0 | ||
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 | 3,430 | 3,387 | ||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Prepaid expenses and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 0 | 0 | ||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets, Fair Value | 60 | 41 | ||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Accrued liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | 20 | 39 | ||
Net investment hedges | Designated as Hedging Instrument | Cross-currency swaps | Other noncurrent liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, Fair Value | $ 82 | $ 81 |
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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in accumulated other comprehensive loss | $ 3 | |
Gains (losses) recognized in accumulated other comprehensive loss | $ (10) | |
Foreign exchange | Advertising | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 1 | |
Gains (losses) reclassified into income from accumulated other comprehensive loss | 1 | |
Foreign exchange | Distribution | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | 4 | |
Gains (losses) reclassified into income from accumulated other comprehensive loss | 0 | |
Foreign exchange | Costs of revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified into income from accumulated other comprehensive loss | (2) | |
Gains (losses) reclassified into income from accumulated other comprehensive loss | (4) | |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in accumulated other comprehensive loss | $ (15) | |
Gains (losses) recognized in accumulated other comprehensive loss | $ 0 |
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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | $ 34 | |
Amount of gain (loss) recognized in AOCI | $ (75) | |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 7 | |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 0 | |
Sterling Notes | ||
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | (17) | |
Amount of gain (loss) recognized in AOCI | (25) | |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 0 | |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 0 | |
Cross-currency swaps | Interest expense, net | ||
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | 52 | |
Amount of gain (loss) recognized in AOCI | (49) | |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 7 | |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | 0 | |
Foreign exchange | Other expense, net | ||
Derivative [Line Items] | ||
Amount of gain (loss) recognized in AOCI | (1) | |
Amount of gain (loss) recognized in AOCI | (1) | |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | $ 0 | |
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Schedule of Pre-Tax Impact of Items not Designated as Hedges) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | $ (34) | $ 5 |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | 1 | 0 |
Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | (2) | (4) |
Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | 0 | (1) |
Equity (Lionsgate Collar) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | 1 | 10 |
Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total in other expense, net | $ (34) | $ 0 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests Redeemable Noncontrolling Interests (Schedule of Redeemable Noncontrolling Interest Balances) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Redeemable Noncontrolling Interest [Line Items] | ||||
Redeemable noncontrolling interest balance | $ 440 | $ 415 | $ 419 | $ 413 |
Discovery Family | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redeemable noncontrolling interest balance | 206 | 206 | ||
MotorTrend Group, LLC (MTG) | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redeemable noncontrolling interest balance | 121 | 121 | ||
Oprah Winfrey Network (OWN) | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redeemable noncontrolling interest balance | 60 | 58 | ||
Discovery Japan | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redeemable noncontrolling interest balance | 28 | 30 | ||
PSG | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redeemable noncontrolling interest balance | $ 25 | $ 0 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests (Schedule of Redeemable Noncontrolling Interest) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Temporary Equity | ||
Beginning balance | $ 415 | $ 413 |
Initial fair value of redeemable noncontrolling interests of acquired businesses | 25 | 0 |
Cash distributions to redeemable noncontrolling interests | (10) | (2) |
Comprehensive income adjustments: | ||
Net income attributable to redeemable noncontrolling interests | 5 | 6 |
Currency translation on redemption values | 0 | 2 |
Retained earnings adjustments: | ||
Adjustments of redemption values to the floor | 3 | 0 |
OWN interest adjustment | 2 | 0 |
Ending balance | $ 440 | $ 419 |
Redeemable Noncontrolling Int_5
Redeemable Noncontrolling Interests (Narrative) (Details) - window | Jan. 08, 2019 | Nov. 06, 2018 | Mar. 31, 2019 |
Discovery Family | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling owners | 40.00% | ||
Terms of put arrangement | 1 year | ||
MotorTrend Group, LLC (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 Japan | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling owners | 20.00% | ||
PSG | PSG | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling owners | 29.30% | ||
Post-acquisition ownership percentage of the acquiror in the combined entity | 100.00% | ||
Subsequent Acquisition, Window One | Harpo | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Step acquisition, subsequent acquisition, number of windows | 4 | ||
Subsequent Acquisition, Window One | PSG | PSG | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Post-acquisition ownership percentage of the acquiror in the combined entity | 50.00% | ||
Subsequent Acquisition, Window Two | Harpo | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Step acquisition, subsequent acquisition, term of window | 2 years 6 months | ||
Step acquisition, put option redemption premium | 9.337% | ||
Subsequent Acquisition, Window Two | PSG | PSG | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Post-acquisition ownership percentage of the acquiror in the combined entity | 50.00% | ||
Equity Option | MotorTrend Group, LLC (MTG) | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Terms of put arrangement | 30 days | ||
Equity Option | PSG | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Terms of put arrangement | 3 years | ||
Equity Option | Subsequent Acquisition, Window One | Harpo | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Step acquisition, subsequent acquisition, term of window | 90 days |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) shares in Millions | Mar. 06, 2018 | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||
Treasury stock, value | $ 6,737,000,000 | $ 6,737,000,000 | ||
Series A Common Stock | ||||
Class of Stock [Line Items] | ||||
Treasury stock (in shares) | 3 | |||
Treasury stock, value | $ 171,000,000 | |||
Series C Common Stock | ||||
Class of Stock [Line Items] | ||||
Treasury stock (in shares) | 164 | |||
Treasury stock, value | $ 6,600,000,000 | |||
Scripps Networks | ||||
Class of Stock [Line Items] | ||||
Equity interest issued or issuable (in shares) | 1 | |||
Scripps Networks | Series C Common Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of stock in connection with acquisition (in shares) | 139 | |||
Subsequent Event | Series C Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount (up to) | $ 1,000,000,000 |
Equity (Other Comprehensive Inc
Equity (Other Comprehensive Income (Loss) Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Unrealized (losses) gains, Net-of-tax | $ (77) | $ (4) |
Reclassifications, Net-of-tax | (3) | 2 |
Other comprehensive income (loss) | (80) | (2) |
Accumulated Other Comprehensive Loss | ||
Derivative [Line Items] | ||
Other comprehensive (loss) income, Pretax | (86) | (11) |
Other comprehensive (loss) income, Tax Benefit (Expense) | 6 | 9 |
Other comprehensive income (loss) | (80) | (2) |
Currency Translation | ||
Derivative [Line Items] | ||
Unrealized (losses) gains, Net-of-tax | (69) | 3 |
Reclassifications, Net-of-tax | 0 | 0 |
Other comprehensive (loss) income, Pretax | (71) | (4) |
Other comprehensive (loss) income, Tax Benefit (Expense) | 2 | 7 |
Other comprehensive income (loss) | (69) | 3 |
Currency Translation | Foreign currency | ||
Derivative [Line Items] | ||
Unrealized (losses) gains, Pretax | (98) | 71 |
Unrealized (losses) gains, Tax Benefit (Expense) | 2 | 7 |
Unrealized (losses) gains, Net-of-tax | (96) | 78 |
Currency Translation | Net investment hedges | ||
Derivative [Line Items] | ||
Unrealized (losses) gains, Pretax | 27 | (75) |
Unrealized (losses) gains, Tax Benefit (Expense) | 0 | 0 |
Unrealized (losses) gains, Net-of-tax | 27 | (75) |
Derivatives | ||
Derivative [Line Items] | ||
Unrealized (losses) gains, Pretax | (12) | (10) |
Unrealized (losses) gains, Tax Benefit (Expense) | 4 | 3 |
Unrealized (losses) gains, Net-of-tax | (8) | (7) |
Reclassifications, Net-of-tax | (3) | 2 |
Other comprehensive (loss) income, Pretax | (15) | (7) |
Other comprehensive (loss) income, Tax Benefit (Expense) | 4 | 2 |
Other comprehensive income (loss) | (11) | (5) |
Derivatives | Distribution revenue | ||
Derivative [Line Items] | ||
Reclassifications, Pretax | (4) | 0 |
Reclassifications, Tax Benefit (Expense) | 0 | 0 |
Reclassifications, Net-of-tax | (4) | 0 |
Derivatives | Advertising | ||
Derivative [Line Items] | ||
Reclassifications, Pretax | (1) | (1) |
Reclassifications, Tax Benefit (Expense) | 0 | 0 |
Reclassifications, Net-of-tax | (1) | (1) |
Derivatives | Costs of revenues | ||
Derivative [Line Items] | ||
Reclassifications, Pretax | 2 | 4 |
Reclassifications, Tax Benefit (Expense) | 0 | (1) |
Reclassifications, Net-of-tax | $ 2 | $ 3 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 10,102 | $ 4,610 | ||
Other comprehensive income before reclassifications | (77) | (4) | ||
Reclassifications from accumulated other comprehensive loss to net income | (3) | 2 | ||
Other comprehensive income (loss) | (80) | (2) | ||
Cumulative effect of accounting changes | $ 0 | $ 7 | ||
Ending balance | 10,300 | 9,594 | ||
Accounting Standards Update 2018-02 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | (30) | |||
Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | (26) | |||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (785) | (585) | ||
Other comprehensive income (loss) | (80) | (2) | ||
Cumulative effect of accounting changes | (30) | (26) | ||
Ending balance | (895) | (613) | ||
AOCI Including Portion Attributable to Noncontrolling Interest | Accounting Standards Update 2018-02 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | (30) | |||
Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (804) | (615) | ||
Other comprehensive income before reclassifications | (69) | 3 | ||
Reclassifications from accumulated other comprehensive loss to net income | 0 | 0 | ||
Other comprehensive income (loss) | (69) | 3 | ||
Ending balance | (901) | (612) | ||
Currency Translation | Accounting Standards Update 2018-02 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | (28) | |||
Currency Translation | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | 0 | |||
AFS | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 26 | |||
Other comprehensive income before reclassifications | 0 | |||
Reclassifications from accumulated other comprehensive loss to net income | 0 | |||
Other comprehensive income (loss) | 0 | |||
Ending balance | 0 | |||
AFS | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | (26) | |||
Derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 16 | 4 | ||
Other comprehensive income before reclassifications | (8) | (7) | ||
Reclassifications from accumulated other comprehensive loss to net income | (3) | 2 | ||
Other comprehensive income (loss) | (11) | (5) | ||
Ending balance | 3 | $ (1) | ||
Derivatives | Accounting Standards Update 2018-02 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | (2) | |||
Derivatives | Accounting Standards Update 2016-01 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | $ 0 | |||
Pension Plan and SERP Liability | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 3 | |||
Other comprehensive income before reclassifications | 0 | |||
Reclassifications from accumulated other comprehensive loss to net income | 0 | |||
Other comprehensive income (loss) | 0 | |||
Ending balance | $ 3 | |||
Pension Plan and SERP Liability | Accounting Standards Update 2018-02 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Cumulative effect of accounting changes | $ 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 ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,707,000,000 | $ 2,307,000,000 |
Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,415,000,000 | 1,012,000,000 |
Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,224,000,000 | 1,051,000,000 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 68,000,000 | 244,000,000 |
Operating Segments | U.S. Networks | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,752,000,000 | 1,174,000,000 |
Operating Segments | U.S. Networks | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,022,000,000 | 627,000,000 |
Operating Segments | U.S. Networks | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 697,000,000 | 514,000,000 |
Operating Segments | U.S. Networks | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 33,000,000 | 33,000,000 |
Operating Segments | International Networks | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 952,000,000 | 1,098,000,000 |
Operating Segments | International Networks | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 393,000,000 | 385,000,000 |
Operating Segments | International Networks | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 527,000,000 | 537,000,000 |
Operating Segments | International Networks | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 32,000,000 | 176,000,000 |
Operating Segments | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,000,000 | 35,000,000 |
Operating Segments | Other | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Operating Segments | Other | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Operating Segments | Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3,000,000 | $ 35,000,000 |
Revenues - Transaction Price Al
Revenues - Transaction Price Allocated to Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 $ in Millions | Mar. 31, 2019USD ($) |
Distribution | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,300 |
Remaining performance obligations, expected timing of satisfaction, period | 5 years |
Content Licensing Contracts | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 577 |
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 | $ 78 |
Remaining performance obligations, expected timing of satisfaction, period | 13 years |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 06, 2018 | |
Accounts receivable | |||
Beginning of period | $ 2,620 | $ 1,838 | |
Additions | 2,711 | 2,981 | |
Reductions | (2,693) | (2,163) | |
Foreign Currency | (13) | (2) | |
End of period | 2,625 | 2,654 | |
Deferred revenues, Current: | |||
Beginning of period | 249 | 255 | |
Additions | 293 | 354 | |
Reductions | (306) | (304) | |
Foreign Currency | 0 | (6) | |
End of period | 236 | 299 | |
Deferred revenues, Long term: | |||
Beginning of period | 120 | 109 | |
Additions | 4 | 3 | |
Reductions | 0 | 0 | |
Foreign Currency | (1) | 0 | |
End of period | 123 | 112 | |
Accounts receivable | 2,620 | $ 1,838 | |
Revenue recognized related to the contract liability (deferred revenues) | $ 99 | ||
Scripps Networks | |||
Deferred revenues, Long term: | |||
Accounts receivable | $ 783 | ||
Deferred revenue | $ 116 |
Share-based Compensation (Equit
Share-based Compensation (Equity-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | $ 30 | $ 15 |
Tax benefit recognized | 3 | 3 |
PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | 10 | 2 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | 6 | 7 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | 9 | 5 |
SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | $ 5 | $ 1 |
Share-based Compensation (Liabi
Share-based Compensation (Liability Classified) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total liability-classified share-based compensation award liability | $ 43 | $ 54 |
PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Current portion of liability-classified awards | 15 | 21 |
Non-current portion of liability-classified awards | 14 | 22 |
SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Current portion of liability-classified awards | 7 | 2 |
Non-current portion of liability-classified awards | $ 7 | $ 9 |
Share-based Compensation (Award
Share-based Compensation (Awards Granted and Converted During Period) (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted, Awards (in shares) | shares | 0.5 |
Awards converted or settled, Awards (in shares) | shares | 1.1 |
Awards granted, Weighted-Average Grant Price (in dollars per share) | $ / shares | $ 28.48 |
Awards converted or settled, Weighted-Average Grant Price (in dollars per share) | $ / shares | $ 33.31 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted, Awards (in shares) | shares | 2.9 |
Awards converted or settled, Awards (in shares) | shares | 0.7 |
Awards granted, Weighted-Average Grant Price (in dollars per share) | $ / shares | $ 29.01 |
Awards converted or settled, Weighted-Average Grant Price (in dollars per share) | $ / shares | $ 28.56 |
SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted, Awards (in shares) | shares | 0 |
Awards converted or settled, Awards (in shares) | shares | 0.9 |
Awards granted, Weighted-Average Grant Price (in dollars per share) | $ / shares | $ 0 |
Awards converted or settled, Weighted-Average Grant Price (in dollars per share) | $ / shares | $ 22.34 |
Share-based Compensation (Stock
Share-based Compensation (Stock Options Rollforward) (Details) - Stock options - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Stock Options | ||
Options outstanding as of the beginning of the period (in shares) | 21.1 | |
Granted (in shares) | 2.1 | |
Options exercised (in shares) | (0.4) | |
Forfeited/cancelled (in shares) | (0.2) | |
Options outstanding as of the end of the period (in shares) | 22.6 | |
Weighted-Average Exercise Price | ||
Outstanding as of beginning of the period (in dollars per share) | $ 28.86 | |
Granted (in dollars per share) | $ 31.01 | |
Exercised (in dollars per share) | 23.47 | |
Forfeited/cancelled (in dollars per share) | $ 30.26 |
Share-based Compensation (Unrec
Share-based Compensation (Unrecognized Compensation Cost) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 301 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 149 |
Weighted-Average Amortization Period (years) | 3 years 102 days |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 24 |
Weighted-Average Amortization Period (years) | 1 year 128 days |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 115 |
Weighted-Average Amortization Period (years) | 3 years 274 days |
SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 13 |
Weighted-Average Amortization Period (years) | 1 year 165 days |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Tax Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
U.S. federal statutory income tax provision | $ (120) | $ 4 |
State and local income taxes, net of federal tax benefit | (20) | 7 |
Effect of foreign operations | (11) | (4) |
Change in uncertain tax positions | (6) | 0 |
Renewable energy investments tax credits (See Note 3) | 0 | 0 |
Noncontrolling interest adjustment | 12 | 0 |
U.S. legislative changes | 0 | 19 |
Other, net | (8) | (6) |
Income tax (expense) benefit | $ (153) | $ 20 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
U.S. federal statutory income tax provision | 21.00% | 21.00% |
State and local income taxes, net of federal tax benefit | 4.00% | 44.00% |
Effect of foreign operations | 2.00% | (21.00%) |
Change in uncertain tax positions | 1.00% | (2.00%) |
Renewable energy investments tax credits (See Note 3) | (0.00%) | (1.00%) |
Noncontrolling interest adjustment | (2.00%) | (1.00%) |
U.S. legislative changes | 0.00% | 109.00% |
Other, net | 1.00% | (31.00%) |
Income tax (expense) benefit | 27.00% | 118.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 438 | $ 378 | |
Unrecognized tax benefits, decreases resulting from current period tax positions | 99 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 66 | $ 51 | |
Minimum | Scenario, Forecast | |||
Income Tax Contingency [Line Items] | |||
Expected non-cash deferred Income tax benefit | $ 450 | ||
Maximum | Scenario, Forecast | |||
Income Tax Contingency [Line Items] | |||
Expected non-cash deferred Income tax benefit | $ 500 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | Mar. 31, 2019shares |
Series A Common Stock | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Common stock, conversion basis (in shares) | 9 |
Series C 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 (Calculated
Earnings Per Share (Calculated Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income | $ 418 | $ 3 |
Less: | ||
Net income attributable to noncontrolling interests | (29) | (5) |
Net income attributable to redeemable noncontrolling interests | (5) | (6) |
Redeemable noncontrolling interest adjustments to redemption value | (5) | 0 |
Net income (loss) allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 341 | (7) |
Allocation of net income (loss) to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: | ||
Total | 341 | (7) |
Series A-1 Convertible Preferred Stock | ||
Less: | ||
Allocation of undistributed (income) loss to Series A-1 convertible preferred stock | (38) | 1 |
Add: | ||
Allocation of undistributed income (loss) to Series A-1 convertible preferred stockholders | 38 | (1) |
Series A, B and C Common Stock and C1 Preferred Stock | ||
Less: | ||
Net income (loss) allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 341 | (7) |
Allocation of net income (loss) to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: | ||
Total | 341 | (7) |
Series A, B and C Common Stock | ||
Less: | ||
Net income (loss) allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | 279 | (6) |
Allocation of net income (loss) to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: | ||
Total | 279 | (6) |
Add: | ||
Net income (loss) allocated to Discovery, Inc. Series A, B and C common stockholders for diluted net income per share | $ 379 | $ (8) |
Denominator — weighted average: | ||
Series A, B and C common shares outstanding — basic (in shares) | 524 | 422 |
Impact of assumed preferred stock conversion (in shares) | 187 | 187 |
Dilutive effect of share-based awards (in shares) | 3 | 0 |
Series A, B and C common shares outstanding — diluted (in shares) | 714 | 609 |
Basic net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: | ||
Basic net income (loss) per share (in dollars per share) | $ 0.53 | $ (0.01) |
Diluted net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: | ||
Diluted net income (loss) per share (in dollars per share) | $ 0.53 | $ (0.01) |
Series C-1 Convertible Preferred Stock | ||
Less: | ||
Net income (loss) allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders for basic net income per share | $ 62 | $ (1) |
Allocation of net income (loss) to Discovery, Inc. Series A, B and C common stockholders and Series C-1 convertible preferred stockholders for basic net income per share: | ||
Total | $ 62 | $ (1) |
Denominator — weighted average: | ||
Series C-1 convertible preferred stock outstanding — basic and diluted (in shares) | 6 | 6 |
Basic net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: | ||
Basic net income (loss) per share (in dollars per share) | $ 10.31 | $ (0.25) |
Diluted net income (loss) per share allocated to Discovery, Inc. Series A, B and C common and Series C-1 convertible preferred stockholders: | ||
Diluted net income (loss) per share (in dollars per share) | $ 10.27 | $ (0.25) |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Anti-dilutive share-based awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from computation of earnings per share (in shares) | 21 | 16 |
PRSUs whose performance targets have not been achieved | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from computation of earnings per share (in shares) | 1 | 2 |
Supplemental Disclosures (Sched
Supplemental Disclosures (Schedule of Other Expense, net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | ||
Foreign currency losses, net | $ (9) | $ (4) |
(Loss) gain on derivative instruments, net | (34) | 5 |
Change in the value of common stock investments with readily determinable fair value | 0 | (38) |
Interest income | 0 | 15 |
Other income, net | 8 | 0 |
Remeasurement gain on previously held equity interest | 8 | 0 |
Total other expense, net | $ (27) | $ (22) |
Supplemental Disclosures (Sch_2
Supplemental Disclosures (Schedule of Supplemental Cash Flow Information) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | ||
Cash paid for taxes, net | $ 34 | $ 44 |
Cash paid for interest, net | $ 197 | $ 199 |
Non-cash investing and financing activities: | ||
Equity issued for the acquisition of Scripps Networks (in shares) | 0 | 3,218 |
Accrued purchases of property and equipment | $ 26 | $ 13 |
Assets acquired under finance lease arrangements | $ 2 | $ 24 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Board of Directors Chairman | Mar. 31, 2019 |
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 | 48.00% |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Related Party Transactions, Revenues and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Total revenues and service charges | $ 256 | $ 193 |
Interest income | 1 | 0 |
Expenses | (196) | (55) |
Liberty Group | ||
Related Party Transaction [Line Items] | ||
Total revenues and service charges | 168 | 145 |
Equity method investees | ||
Related Party Transaction [Line Items] | ||
Total revenues and service charges | 74 | 38 |
Other | ||
Related Party Transaction [Line Items] | ||
Total revenues and service charges | $ 14 | $ 10 |
Related Party Transactions (S_2
Related Party Transactions (Schedule of Related Party Transactions, Receivables) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Receivables | $ 155 | $ 167 |
Note receivable | $ 98 | $ 94 |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Guarantees - Contingencies (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Other Commitments [Line Items] | ||||
Redeemable noncontrolling interest balance | $ 440,000,000 | $ 415,000,000 | $ 419,000,000 | $ 413,000,000 |
Liability recorded as a measurement period adjustment | 40,000,000 | |||
Reversal of liability recorded as a measurement period adjustment | 29,000,000 | $ 0 | ||
Guarantor obligations, current carrying value | 0 | 0 | ||
Material amounts for indemnifications or other contingencies | 0 | 0 | ||
Discovery Family | ||||
Other Commitments [Line Items] | ||||
Redeemable noncontrolling interest balance | 206,000,000 | 206,000,000 | ||
MotorTrend Group, LLC (MTG) | ||||
Other Commitments [Line Items] | ||||
Redeemable noncontrolling interest balance | 121,000,000 | 121,000,000 | ||
Oprah Winfrey Network (OWN) | ||||
Other Commitments [Line Items] | ||||
Redeemable noncontrolling interest balance | 60,000,000 | 58,000,000 | ||
Discovery Japan | ||||
Other Commitments [Line Items] | ||||
Redeemable noncontrolling interest balance | 28,000,000 | 30,000,000 | ||
PSG | ||||
Other Commitments [Line Items] | ||||
Redeemable noncontrolling interest balance | $ 25,000,000 | $ 0 |
Reportable Segments (Schedule o
Reportable Segments (Schedule of Revenues by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 2,707 | $ 2,307 |
Operating Segments | U.S. Networks | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,752 | 1,174 |
Operating Segments | International Networks | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 952 | 1,098 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 3 | 35 |
Corporate and inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 0 | $ 0 |
Reportable Segments (Schedule_2
Reportable Segments (Schedule of Adjusted OIBDA by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | $ 1,159 | $ 709 |
Operating Segments | U.S. Networks | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | 1,061 | 652 |
Operating Segments | International Networks | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | 219 | 137 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | 1 | 3 |
Corporate and inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | $ (122) | $ (83) |
Reportable Segments (Schedule_3
Reportable Segments (Schedule of Reconciliation of Adjusted OIBDA to Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting [Abstract] | ||
Net income (loss) available to Discovery, Inc. | $ 384 | $ (8) |
Net income attributable to noncontrolling interests | 29 | 5 |
Net income attributable to redeemable noncontrolling interests | 5 | 6 |
Income tax expense (benefit) | 153 | (20) |
Income (loss) before income taxes | 571 | (17) |
Other expense, net | 27 | 22 |
(Income) loss from equity investees, net | (11) | 22 |
Loss on extinguishment of debt | 5 | 0 |
Interest expense | 182 | 177 |
Operating income | 774 | 204 |
Restructuring and other charges | 5 | 241 |
Depreciation and amortization | 372 | 193 |
Share-based compensation | 30 | 15 |
Scripps Networks transaction and integration costs | 7 | 56 |
Settlement of a withholding tax claim | (29) | 0 |
Total Adjusted OIBDA | $ 1,159 | $ 709 |
Reportable Segments (Schedule_4
Reportable Segments (Schedule of Total Assets by Segment) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 32,444 | $ 32,550 |
Operating Segments | U.S. Networks | ||
Segment Reporting Information [Line Items] | ||
Total assets | 18,539 | 18,683 |
Operating Segments | International Networks | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,229 | 7,208 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 223 | 227 |
Corporate and inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 6,453 | $ 6,432 |
Restructuring and Other Charg_3
Restructuring and Other Charges (By Reporting Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | $ 5 | $ 241 |
Operating Segments | U.S. Networks | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | 4 | 34 |
Operating Segments | International Networks | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | 4 | 100 |
Corporate and inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | $ (3) | $ 107 |
Restructuring And Other Charg_4
Restructuring And Other Charges (Total Restructuring and Other Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | $ 5 | $ 164 |
Other charges | 0 | 77 |
Total restructuring and other charges | $ 5 | $ 241 |
Restructuring and Other Charg_5
Restructuring and Other Charges (Liabilities) (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 |
Restructuring Reserve | ||
December 31, 2018 | $ 108 | $ 108 |
Net contract termination accruals | (6) | |
Net employee relocation/termination accruals | 5 | |
Cash paid | (25) | |
March 31, 2019 | 82 | |
Operating lease right-of-use assets | 4 | |
Corporate and inter-segment eliminations | ||
Restructuring Reserve | ||
December 31, 2018 | 46 | 46 |
Net contract termination accruals | (6) | |
Net employee relocation/termination accruals | (3) | |
Cash paid | (8) | |
March 31, 2019 | 29 | |
U.S. Networks | Operating Segments | ||
Restructuring Reserve | ||
December 31, 2018 | 16 | 16 |
Net contract termination accruals | 0 | |
Net employee relocation/termination accruals | 4 | |
Cash paid | (11) | |
March 31, 2019 | 9 | |
International Networks | Operating Segments | ||
Restructuring Reserve | ||
December 31, 2018 | 46 | 46 |
Net contract termination accruals | 0 | |
Net employee relocation/termination accruals | 4 | |
Cash paid | (6) | |
March 31, 2019 | $ 44 | |
Accounting Standards Update 2016-02 | ||
Restructuring Reserve | ||
Operating lease right-of-use assets | 342 | |
Accrued liabilities | Accounting Standards Update 2016-02 | Corporate and inter-segment eliminations | ||
Restructuring Reserve | ||
Net contract termination accruals | (1) | |
Operating lease right-of-use assets | 1 | |
Other noncurrent liabilities | Accounting Standards Update 2016-02 | Corporate and inter-segment eliminations | ||
Restructuring Reserve | ||
Net contract termination accruals | (5) | |
Operating lease right-of-use assets | $ 5 |
Subsequent Events (Details)
Subsequent Events (Details) - Scenario, Forecast $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Magnolia | |
Subsequent Event [Line Items] | |
Ownership percentage by parent | 75.00% |
Minimum | |
Subsequent Event [Line Items] | |
Expected non-cash deferred Income tax benefit | $ 450 |
Maximum | |
Subsequent Event [Line Items] | |
Expected non-cash deferred Income tax benefit | $ 500 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements (Narrative) (Details) - USD ($) $ in Millions | Apr. 03, 2018 | Mar. 31, 2019 | Mar. 06, 2018 |
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 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 745 | $ 986 | ||
Receivables, net | 2,625 | 2,620 | ||
Content rights, net | 364 | 313 | ||
Prepaid expenses and other current assets | 291 | 312 | ||
Total current assets | 4,025 | 4,231 | ||
Noncurrent content rights, net | 3,098 | 3,069 | ||
Goodwill, net | 13,037 | 13,006 | ||
Intangible assets, net | 9,366 | 9,674 | ||
Equity method investments, including note receivable (See Note 3) | 955 | 935 | ||
Other noncurrent assets | 1,161 | 835 | ||
Total assets | 32,444 | 32,550 | ||
Current liabilities: | ||||
Current portion of debt | 1,387 | 1,819 | ||
Total current liabilities | 3,475 | 3,997 | ||
Noncurrent portion of debt | 14,956 | 14,974 | ||
Deferred income taxes | 1,700 | 1,811 | ||
Other noncurrent liabilities | 1,573 | 1,251 | ||
Total liabilities | 21,704 | 22,033 | ||
Redeemable noncontrolling interests | 440 | 415 | ||
Total Discovery, Inc. stockholders' equity | 8,708 | 8,386 | ||
Noncontrolling interests | 1,592 | 1,716 | ||
Total equity | 10,300 | 10,102 | $ 9,594 | $ 4,610 |
Total liabilities and equity | 32,444 | 32,550 | ||
Reclassifications and Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Content rights, net | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Inter-company trade receivables, net | (272) | (151) | ||
Total current assets | (272) | (151) | ||
Investment in and advances to subsidiaries | (28,184) | (27,905) | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments, including note receivable (See Note 3) | 0 | 0 | ||
Other noncurrent assets | (19) | (20) | ||
Total assets | (28,475) | (28,076) | ||
Current liabilities: | ||||
Other current liabilities | 0 | 0 | ||
Inter-company trade payables, net | (272) | (151) | ||
Current portion of debt | 0 | 0 | ||
Total current liabilities | (272) | (151) | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | (7,412) | (8,610) | ||
Other noncurrent liabilities | (20) | (20) | ||
Total liabilities | (7,704) | (8,781) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | (22,363) | (21,011) | ||
Noncontrolling interests | 1,592 | 1,716 | ||
Total equity | (20,771) | (19,295) | ||
Total liabilities and equity | (28,475) | (28,076) | ||
Discovery | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Content rights, net | 0 | 0 | ||
Prepaid expenses and other current assets | 1 | 21 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 1 | 21 | ||
Investment in and advances to subsidiaries | 8,818 | 8,367 | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments, including note receivable (See Note 3) | 0 | 0 | ||
Other noncurrent assets | 0 | 0 | ||
Total assets | 8,819 | 8,388 | ||
Current liabilities: | ||||
Other current liabilities | 109 | 0 | ||
Inter-company trade payables, net | 0 | 0 | ||
Current portion of debt | 0 | 0 | ||
Total current liabilities | 109 | 0 | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 2 | 2 | ||
Total liabilities | 111 | 2 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | 8,708 | 8,386 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 8,708 | 8,386 | ||
Total liabilities and equity | 8,819 | 8,388 | ||
Scripps Networks | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 237 | 315 | ||
Receivables, net | 0 | 0 | ||
Content rights, net | 0 | 0 | ||
Prepaid expenses and other current assets | 14 | 18 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 251 | 333 | ||
Investment in and advances to subsidiaries | 13,041 | 13,248 | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments, including note receivable (See Note 3) | 98 | 94 | ||
Other noncurrent assets | 39 | 35 | ||
Total assets | 13,429 | 13,710 | ||
Current liabilities: | ||||
Other current liabilities | 27 | 30 | ||
Inter-company trade payables, net | 0 | 0 | ||
Current portion of debt | 106 | 106 | ||
Total current liabilities | 133 | 136 | ||
Noncurrent portion of debt | 135 | 134 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 59 | 56 | ||
Total liabilities | 327 | 326 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | 13,102 | 13,384 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 13,102 | 13,384 | ||
Total liabilities and equity | 13,429 | 13,710 | ||
DCH | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Content rights, net | 0 | 0 | ||
Prepaid expenses and other current assets | 12 | 22 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 12 | 22 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 0 | 0 | ||
Goodwill, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity method investments, including note receivable (See Note 3) | 0 | 0 | ||
Other noncurrent assets | 18 | 20 | ||
Total assets | 30 | 42 | ||
Current liabilities: | ||||
Other current liabilities | 0 | 0 | ||
Inter-company trade payables, net | 0 | 0 | ||
Current portion of debt | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | 4,459 | 5,183 | ||
Other noncurrent liabilities | 0 | 0 | ||
Total liabilities | 4,459 | 5,183 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | (4,429) | (5,141) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (4,429) | (5,141) | ||
Total liabilities and equity | 30 | 42 | ||
DCL | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 134 | 61 | ||
Receivables, net | 434 | 405 | ||
Content rights, net | 28 | 1 | ||
Prepaid expenses and other current assets | 50 | 49 | ||
Inter-company trade receivables, net | 272 | 151 | ||
Total current assets | 918 | 667 | ||
Investment in and advances to subsidiaries | 6,325 | 6,290 | ||
Noncurrent content rights, net | 580 | 607 | ||
Goodwill, net | 3,678 | 3,678 | ||
Intangible assets, net | 242 | 246 | ||
Equity method investments, including note receivable (See Note 3) | 20 | 23 | ||
Other noncurrent assets | 610 | 537 | ||
Total assets | 12,373 | 12,048 | ||
Current liabilities: | ||||
Other current liabilities | 349 | 402 | ||
Inter-company trade payables, net | 0 | 0 | ||
Current portion of debt | 1,268 | 1,701 | ||
Total current liabilities | 1,617 | 2,103 | ||
Noncurrent portion of debt | 14,590 | 14,606 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 625 | 522 | ||
Total liabilities | 16,832 | 17,231 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | (4,459) | (5,183) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (4,459) | (5,183) | ||
Total liabilities and equity | 12,373 | 12,048 | ||
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 291 | 475 | ||
Receivables, net | 1,321 | 1,305 | ||
Content rights, net | 273 | 250 | ||
Prepaid expenses and other current assets | 149 | 134 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 2,034 | 2,164 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 1,564 | 1,501 | ||
Goodwill, net | 3,309 | 3,298 | ||
Intangible assets, net | 1,230 | 1,261 | ||
Equity method investments, including note receivable (See Note 3) | 295 | 291 | ||
Other noncurrent assets | 822 | 607 | ||
Total assets | 9,254 | 9,122 | ||
Current liabilities: | ||||
Other current liabilities | 1,141 | 1,266 | ||
Inter-company trade payables, net | 272 | 151 | ||
Current portion of debt | 13 | 12 | ||
Total current liabilities | 1,426 | 1,429 | ||
Noncurrent portion of debt | 231 | 234 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 832 | 754 | ||
Total liabilities | 2,489 | 2,417 | ||
Redeemable noncontrolling interests | 440 | 415 | ||
Total Discovery, Inc. stockholders' equity | 6,325 | 6,290 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 6,325 | 6,290 | ||
Total liabilities and equity | 9,254 | 9,122 | ||
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 83 | 135 | ||
Receivables, net | 870 | 910 | ||
Content rights, net | 63 | 62 | ||
Prepaid expenses and other current assets | 65 | 68 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 1,081 | 1,175 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 954 | 961 | ||
Goodwill, net | 6,050 | 6,030 | ||
Intangible assets, net | 7,894 | 8,167 | ||
Equity method investments, including note receivable (See Note 3) | 542 | 527 | ||
Other noncurrent assets | 493 | 456 | ||
Total assets | 17,014 | 17,316 | ||
Current liabilities: | ||||
Other current liabilities | 462 | 480 | ||
Inter-company trade payables, net | 0 | 0 | ||
Current portion of debt | 0 | 0 | ||
Total current liabilities | 462 | 480 | ||
Noncurrent portion of debt | 0 | 0 | ||
Negative carrying amount in subsidiaries, net | 2,953 | 3,427 | ||
Other noncurrent liabilities | 1,775 | 1,748 | ||
Total liabilities | 5,190 | 5,655 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total Discovery, Inc. stockholders' equity | 11,824 | 11,661 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 11,824 | 11,661 | ||
Total liabilities and equity | 17,014 | 17,316 | ||
Discovery and Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 745 | 986 | ||
Receivables, net | 2,625 | 2,620 | ||
Content rights, net | 364 | 313 | ||
Prepaid expenses and other current assets | 291 | 312 | ||
Inter-company trade receivables, net | 0 | 0 | ||
Total current assets | 4,025 | 4,231 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||
Noncurrent content rights, net | 3,098 | 3,069 | ||
Goodwill, net | 13,037 | 13,006 | ||
Intangible assets, net | 9,366 | 9,674 | ||
Equity method investments, including note receivable (See Note 3) | 955 | 935 | ||
Other noncurrent assets | 1,963 | 1,635 | ||
Total assets | 32,444 | 32,550 | ||
Current liabilities: | ||||
Other current liabilities | 2,088 | 2,178 | ||
Inter-company trade payables, net | 0 | 0 | ||
Current portion of debt | 1,387 | 1,819 | ||
Total current liabilities | 3,475 | 3,997 | ||
Noncurrent portion of debt | 14,956 | 14,974 | ||
Negative carrying amount in subsidiaries, net | 0 | 0 | ||
Other noncurrent liabilities | 3,273 | 3,062 | ||
Total liabilities | 21,704 | 22,033 | ||
Redeemable noncontrolling interests | 440 | 415 | ||
Total Discovery, Inc. stockholders' equity | 8,708 | $ 8,386 | ||
Noncontrolling interests | 1,592 | 1,716 | ||
Total equity | 10,300 | 10,102 | ||
Total liabilities and equity | $ 32,444 | $ 32,550 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Revenues | $ 2,707 | $ 2,307 |
Costs of revenues, excluding depreciation and amortization | 930 | 1,060 |
Selling, general and administrative | 626 | 609 |
Depreciation and amortization | 372 | 193 |
Restructuring and other charges | 5 | 241 |
Total costs and expenses | 1,933 | 2,103 |
Operating income | 774 | 204 |
Interest expense, net | (182) | (177) |
Loss on extinguishment of debt | (5) | 0 |
Income (loss) from equity investees, net | 11 | (22) |
Other income (expense), net | (27) | (22) |
Income (loss) before income taxes | 571 | (17) |
Income tax benefit (expense) | (153) | 20 |
Net income | 418 | 3 |
Net income attributable to noncontrolling interests | (29) | (5) |
Net income attributable to redeemable noncontrolling interests | (5) | (6) |
Net income (loss) available to Discovery, Inc. | 384 | (8) |
Reclassifications and Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | (7) | (3) |
Costs of revenues, excluding depreciation and amortization | (4) | (5) |
Selling, general and administrative | (2) | 2 |
Depreciation and amortization | 0 | 0 |
Restructuring and other charges | 0 | 0 |
Total costs and expenses | (6) | (3) |
Operating income | (1) | 0 |
Equity in earnings (loss) of subsidiaries | (1,104) | (144) |
Interest expense, net | 0 | 0 |
Loss on extinguishment of debt | 0 | |
Income (loss) from equity investees, net | 0 | 0 |
Other income (expense), net | 0 | 0 |
Income (loss) before income taxes | (1,105) | (144) |
Income tax benefit (expense) | 0 | 0 |
Net income | (1,105) | (144) |
Net income attributable to noncontrolling interests | (29) | (5) |
Net income attributable to redeemable noncontrolling interests | (5) | (6) |
Net income (loss) available to Discovery, Inc. | (1,139) | (155) |
Discovery | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 0 | 0 |
Costs of revenues, excluding depreciation and amortization | 0 | 0 |
Selling, general and administrative | 5 | 26 |
Depreciation and amortization | 0 | 0 |
Restructuring and other charges | 0 | 8 |
Total costs and expenses | 5 | 34 |
Operating income | (5) | (34) |
Equity in earnings (loss) of subsidiaries | 387 | 17 |
Interest expense, net | 0 | 0 |
Loss on extinguishment of debt | 0 | |
Income (loss) from equity investees, net | 0 | 0 |
Other income (expense), net | 0 | 0 |
Income (loss) before income taxes | 382 | (17) |
Income tax benefit (expense) | 2 | 8 |
Net income | 384 | (9) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to redeemable noncontrolling interests | 0 | 0 |
Net income (loss) available to Discovery, Inc. | 384 | (9) |
Scripps Networks | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 0 | 0 |
Costs of revenues, excluding depreciation and amortization | 0 | 0 |
Selling, general and administrative | 0 | (1) |
Depreciation and amortization | 0 | 0 |
Restructuring and other charges | 0 | 0 |
Total costs and expenses | 0 | (1) |
Operating income | 0 | 1 |
Equity in earnings (loss) of subsidiaries | 230 | (44) |
Interest expense, net | 0 | (6) |
Loss on extinguishment of debt | 0 | |
Income (loss) from equity investees, net | 0 | 0 |
Other income (expense), net | 4 | 1 |
Income (loss) before income taxes | 234 | (48) |
Income tax benefit (expense) | (1) | 0 |
Net income | 233 | (48) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to redeemable noncontrolling interests | 0 | 0 |
Net income (loss) available to Discovery, Inc. | 233 | (48) |
DCH | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 0 | 0 |
Costs of revenues, excluding depreciation and amortization | 0 | 0 |
Selling, general and administrative | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Restructuring and other charges | 0 | 0 |
Total costs and expenses | 0 | 0 |
Operating income | 0 | 0 |
Equity in earnings (loss) of subsidiaries | 220 | 71 |
Interest expense, net | 0 | 0 |
Loss on extinguishment of debt | 0 | |
Income (loss) from equity investees, net | 0 | 0 |
Other income (expense), net | 0 | 0 |
Income (loss) before income taxes | 220 | 71 |
Income tax benefit (expense) | 0 | 0 |
Net income | 220 | 71 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to redeemable noncontrolling interests | 0 | 0 |
Net income (loss) available to Discovery, Inc. | 220 | 71 |
DCL | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 507 | 488 |
Costs of revenues, excluding depreciation and amortization | 101 | 107 |
Selling, general and administrative | 69 | 80 |
Depreciation and amortization | 12 | 17 |
Restructuring and other charges | 0 | 43 |
Total costs and expenses | 182 | 247 |
Operating income | 325 | 241 |
Equity in earnings (loss) of subsidiaries | 121 | 9 |
Interest expense, net | (175) | (157) |
Loss on extinguishment of debt | (5) | |
Income (loss) from equity investees, net | 1 | 0 |
Other income (expense), net | (6) | (24) |
Income (loss) before income taxes | 261 | 69 |
Income tax benefit (expense) | (41) | 2 |
Net income | 220 | 71 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to redeemable noncontrolling interests | 0 | 0 |
Net income (loss) available to Discovery, Inc. | 220 | 71 |
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 1,296 | 1,549 |
Costs of revenues, excluding depreciation and amortization | 588 | 866 |
Selling, general and administrative | 425 | 436 |
Depreciation and amortization | 80 | 93 |
Restructuring and other charges | 5 | 98 |
Total costs and expenses | 1,098 | 1,493 |
Operating income | 198 | 56 |
Equity in earnings (loss) of subsidiaries | 0 | 0 |
Interest expense, net | (1) | (12) |
Loss on extinguishment of debt | 0 | |
Income (loss) from equity investees, net | (2) | (31) |
Other income (expense), net | (20) | 4 |
Income (loss) before income taxes | 175 | 17 |
Income tax benefit (expense) | (49) | (2) |
Net income | 126 | 15 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to redeemable noncontrolling interests | 0 | 0 |
Net income (loss) available to Discovery, Inc. | 126 | 15 |
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 911 | 273 |
Costs of revenues, excluding depreciation and amortization | 245 | 92 |
Selling, general and administrative | 129 | 66 |
Depreciation and amortization | 280 | 83 |
Restructuring and other charges | 0 | 92 |
Total costs and expenses | 654 | 333 |
Operating income | 257 | (60) |
Equity in earnings (loss) of subsidiaries | 146 | 91 |
Interest expense, net | (6) | (2) |
Loss on extinguishment of debt | 0 | |
Income (loss) from equity investees, net | 12 | 9 |
Other income (expense), net | (5) | (3) |
Income (loss) before income taxes | 404 | 35 |
Income tax benefit (expense) | (64) | 12 |
Net income | 340 | 47 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to redeemable noncontrolling interests | 0 | 0 |
Net income (loss) available to Discovery, Inc. | 340 | 47 |
Discovery and Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 2,707 | 2,307 |
Costs of revenues, excluding depreciation and amortization | 930 | 1,060 |
Selling, general and administrative | 626 | 609 |
Depreciation and amortization | 372 | 193 |
Restructuring and other charges | 5 | 241 |
Total costs and expenses | 1,933 | 2,103 |
Operating income | 774 | 204 |
Equity in earnings (loss) of subsidiaries | 0 | 0 |
Interest expense, net | (182) | (177) |
Loss on extinguishment of debt | (5) | |
Income (loss) from equity investees, net | 11 | (22) |
Other income (expense), net | (27) | (22) |
Income (loss) before income taxes | 571 | (17) |
Income tax benefit (expense) | (153) | 20 |
Net income | 418 | 3 |
Net income attributable to noncontrolling interests | (29) | (5) |
Net income attributable to redeemable noncontrolling interests | (5) | (6) |
Net income (loss) available to Discovery, Inc. | $ 384 | $ (8) |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||
Net income | $ 418 | $ 3 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (69) | 3 |
Derivatives | (11) | (5) |
Comprehensive income | 338 | 1 |
Comprehensive income attributable to noncontrolling interests | (29) | (5) |
Comprehensive income attributable to redeemable noncontrolling interests | (5) | (6) |
Comprehensive income (loss) attributable to Discovery, Inc. | 304 | (10) |
Reclassifications and Eliminations | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | (1,105) | (144) |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | 208 | (64) |
Derivatives | 40 | 18 |
Comprehensive income | (857) | (190) |
Comprehensive income attributable to noncontrolling interests | (29) | (5) |
Comprehensive income attributable to redeemable noncontrolling interests | (5) | 3 |
Comprehensive income (loss) attributable to Discovery, Inc. | (891) | (192) |
Discovery | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 384 | (9) |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (69) | 3 |
Derivatives | (11) | (5) |
Comprehensive income | 304 | (11) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (2) |
Comprehensive income (loss) attributable to Discovery, Inc. | 304 | (13) |
Scripps Networks | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 233 | (48) |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (17) | 20 |
Derivatives | 0 | 0 |
Comprehensive income | 216 | (28) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to Discovery, Inc. | 216 | (28) |
DCH | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 220 | 71 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (52) | 23 |
Derivatives | (11) | (5) |
Comprehensive income | 157 | 89 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (2) |
Comprehensive income (loss) attributable to Discovery, Inc. | 157 | 87 |
DCL | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 220 | 71 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (52) | 23 |
Derivatives | (11) | (5) |
Comprehensive income | 157 | 89 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (2) |
Comprehensive income (loss) attributable to Discovery, Inc. | 157 | 87 |
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 126 | 15 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (35) | 23 |
Derivatives | (11) | (5) |
Comprehensive income | 80 | 33 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (2) |
Comprehensive income (loss) attributable to Discovery, Inc. | 80 | 31 |
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 340 | 47 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (52) | (25) |
Derivatives | (7) | (3) |
Comprehensive income | 281 | 19 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to redeemable noncontrolling interests | 0 | (1) |
Comprehensive income (loss) attributable to Discovery, Inc. | 281 | 18 |
Discovery and Subsidiaries | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 418 | 3 |
Other comprehensive income (loss) adjustments, net of tax: | ||
Currency translation | (69) | 3 |
Derivatives | (11) | (5) |
Comprehensive income | 338 | 1 |
Comprehensive income attributable to noncontrolling interests | (29) | (5) |
Comprehensive income attributable to redeemable noncontrolling interests | (5) | (6) |
Comprehensive income (loss) attributable to Discovery, Inc. | $ 304 | $ (10) |
Condensed Consolidating Finan_7
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Cash (used in) provided by operating activities | $ 542 | $ 160 |
Investing Activities | ||
Payments for investments | (34) | (22) |
Purchases of property and equipment | (44) | (48) |
Proceeds from derivative instruments | 5 | (42) |
Inter-company distributions, and other investing activities, net | 1 | 2 |
Cash used in investing activities | (94) | (8,675) |
Financing Activities | ||
Borrowings under term loan facilities | 0 | 2,000 |
Principal repayments of finance lease obligations | (17) | (13) |
(Repayments) borrowings under program financing line of credit, net | (3) | 22 |
Inter-company contributions (distributions) and other financing activities, net | (1) | (11) |
Cash (used in) provided by financing activities | (652) | 2,019 |
Effect of exchange rate changes on cash and cash equivalents | (37) | (1) |
Net change in cash and cash equivalents | (241) | (6,497) |
Cash and cash equivalents, beginning of period | 986 | 7,309 |
Cash and cash equivalents, end of period | 745 | 812 |
Reclassifications and Eliminations | ||
Operating Activities | ||
Cash (used in) provided by operating activities | 0 | 0 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | 0 |
Investments in and advances to equity method investees | 0 | |
Payments for investments | 0 | |
Purchases of property and equipment | 0 | 0 |
Proceeds from derivative instruments | 0 | 0 |
Inter-company distributions, and other investing activities, net | (20) | 0 |
Cash used in investing activities | (20) | 0 |
Financing Activities | ||
Borrowings under term loan facilities | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of finance lease obligations | 0 | 0 |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Share-based plan (payments) proceeds, net | 0 | 0 |
(Repayments) borrowings under program financing line of credit, net | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | 20 | 0 |
Cash (used in) provided by financing activities | 20 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Discovery | Reportable Legal Entities | ||
Operating Activities | ||
Cash (used in) provided by operating activities | 15 | (54) |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | (8,714) |
Investments in and advances to equity method investees | 0 | |
Payments for investments | 0 | |
Purchases of property and equipment | 0 | 0 |
Proceeds from derivative instruments | 0 | 0 |
Inter-company distributions, and other investing activities, net | 0 | 0 |
Cash used in investing activities | 0 | (8,714) |
Financing Activities | ||
Borrowings under term loan facilities | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of finance lease obligations | 0 | 0 |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Share-based plan (payments) proceeds, net | (15) | 23 |
(Repayments) borrowings under program financing line of credit, net | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | 0 | 8,745 |
Cash (used in) provided by financing activities | (15) | 8,768 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Scripps Networks | Reportable Legal Entities | ||
Operating Activities | ||
Cash (used in) provided by operating activities | 0 | (1) |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | 54 |
Investments in and advances to equity method investees | 0 | |
Payments for investments | 0 | |
Purchases of property and equipment | 0 | 0 |
Proceeds from derivative instruments | 0 | 0 |
Inter-company distributions, and other investing activities, net | 0 | 6 |
Cash used in investing activities | 0 | 60 |
Financing Activities | ||
Borrowings under term loan facilities | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of finance lease obligations | 0 | 0 |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Share-based plan (payments) proceeds, net | 0 | 0 |
(Repayments) borrowings under program financing line of credit, net | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | (78) | 0 |
Cash (used in) provided by financing activities | (78) | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | (78) | 59 |
Cash and cash equivalents, beginning of period | 315 | 0 |
Cash and cash equivalents, end of period | 237 | 59 |
DCH | Reportable Legal Entities | ||
Operating Activities | ||
Cash (used in) provided by operating activities | 10 | (8) |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | 0 |
Investments in and advances to equity method investees | 0 | |
Payments for investments | 0 | |
Purchases of property and equipment | 0 | 0 |
Proceeds from derivative instruments | 0 | 0 |
Inter-company distributions, and other investing activities, net | 0 | 0 |
Cash used in investing activities | 0 | 0 |
Financing Activities | ||
Borrowings under term loan facilities | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of finance lease obligations | 0 | 0 |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Share-based plan (payments) proceeds, net | 0 | 0 |
(Repayments) borrowings under program financing line of credit, net | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | (10) | 8 |
Cash (used in) provided by financing activities | (10) | 8 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
DCL | Reportable Legal Entities | ||
Operating Activities | ||
Cash (used in) provided by operating activities | (8) | 17 |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | 0 |
Investments in and advances to equity method investees | 0 | |
Payments for investments | 0 | |
Purchases of property and equipment | (3) | (25) |
Proceeds from derivative instruments | 0 | 0 |
Inter-company distributions, and other investing activities, net | 20 | 0 |
Cash used in investing activities | 17 | (25) |
Financing Activities | ||
Borrowings under term loan facilities | 2,000 | |
Principal repayments of debt, including discount payment and premiums to par value | (453) | |
Principal repayments of finance lease obligations | (2) | (2) |
Distributions to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 |
Share-based plan (payments) proceeds, net | 0 | 0 |
(Repayments) borrowings under program financing line of credit, net | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | 519 | (8,445) |
Cash (used in) provided by financing activities | 64 | (6,447) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 73 | (6,455) |
Cash and cash equivalents, beginning of period | 61 | 6,800 |
Cash and cash equivalents, end of period | 134 | 345 |
Non-Guarantor Subsidiaries of DCL | Reportable Legal Entities | ||
Operating Activities | ||
Cash (used in) provided by operating activities | (22) | 210 |
Investing Activities | ||
Business acquisitions, net of cash acquired | (22) | 0 |
Investments in and advances to equity method investees | (34) | |
Payments for investments | (28) | |
Purchases of property and equipment | (33) | (23) |
Proceeds from derivative instruments | 5 | (42) |
Inter-company distributions, and other investing activities, net | 0 | 2 |
Cash used in investing activities | (84) | (91) |
Financing Activities | ||
Borrowings under term loan facilities | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of finance lease obligations | (14) | (11) |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (10) | (2) |
Share-based plan (payments) proceeds, net | 0 | 0 |
(Repayments) borrowings under program financing line of credit, net | (3) | 22 |
Inter-company contributions (distributions) and other financing activities, net | (13) | (319) |
Cash (used in) provided by financing activities | (40) | (310) |
Effect of exchange rate changes on cash and cash equivalents | (38) | (1) |
Net change in cash and cash equivalents | (184) | (192) |
Cash and cash equivalents, beginning of period | 475 | 509 |
Cash and cash equivalents, end of period | 291 | 317 |
Other Non- Guarantor Subsidiaries of Discovery | Reportable Legal Entities | ||
Operating Activities | ||
Cash (used in) provided by operating activities | 547 | (4) |
Investing Activities | ||
Business acquisitions, net of cash acquired | 0 | 95 |
Investments in and advances to equity method investees | 0 | |
Payments for investments | 6 | |
Purchases of property and equipment | (8) | 0 |
Proceeds from derivative instruments | 0 | 0 |
Inter-company distributions, and other investing activities, net | 1 | (6) |
Cash used in investing activities | (7) | 95 |
Financing Activities | ||
Borrowings under term loan facilities | 0 | |
Principal repayments of debt, including discount payment and premiums to par value | 0 | |
Principal repayments of finance lease obligations | (1) | 0 |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (153) | 0 |
Share-based plan (payments) proceeds, net | 0 | 0 |
(Repayments) borrowings under program financing line of credit, net | 0 | 0 |
Inter-company contributions (distributions) and other financing activities, net | (439) | 0 |
Cash (used in) provided by financing activities | (593) | 0 |
Effect of exchange rate changes on cash and cash equivalents | 1 | 0 |
Net change in cash and cash equivalents | (52) | 91 |
Cash and cash equivalents, beginning of period | 135 | 0 |
Cash and cash equivalents, end of period | 83 | 91 |
Discovery and Subsidiaries | ||
Operating Activities | ||
Cash (used in) provided by operating activities | 542 | 160 |
Investing Activities | ||
Business acquisitions, net of cash acquired | (22) | (8,565) |
Investments in and advances to equity method investees | (34) | |
Payments for investments | (22) | |
Purchases of property and equipment | (44) | (48) |
Proceeds from derivative instruments | (42) | |
Inter-company distributions, and other investing activities, net | 2 | |
Cash used in investing activities | (94) | (8,675) |
Financing Activities | ||
Borrowings under term loan facilities | 2,000 | |
Principal repayments of debt, including discount payment and premiums to par value | (453) | |
Principal repayments of finance lease obligations | (17) | (13) |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (163) | (2) |
Share-based plan (payments) proceeds, net | (15) | 23 |
(Repayments) borrowings under program financing line of credit, net | (3) | 22 |
Inter-company contributions (distributions) and other financing activities, net | (1) | (11) |
Cash (used in) provided by financing activities | (652) | 2,019 |
Effect of exchange rate changes on cash and cash equivalents | (37) | (1) |
Net change in cash and cash equivalents | (241) | (6,497) |
Cash and cash equivalents, beginning of period | 986 | 7,309 |
Cash and cash equivalents, end of period | $ 745 | $ 812 |
Uncategorized Items - disca-201
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 7,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |